Search found 26873 matches

by retiredjg
Sat Dec 10, 2016 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: combining TLH with tax-efficient allocation and reallocation to int'l funds
Replies: 7
Views: 212

Re: combining TLH with tax-efficient allocation and reallocation to int'l funds

I can avoid both problems you identify by taking his advice and just using a very different bond fund (like an intermediate bond fund). Maybe. Both of those bond funds are intermediate term bond funds. So you need to look for something other than just that. I didn't know that--I thought Total Bond ...
by retiredjg
Sat Dec 10, 2016 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Combining backdoor Roth and rollover of 401k after-tax contributions
Replies: 23
Views: 1771

Re: Combining backdoor Roth and rollover of 401k after-tax contributions

you can siphon off the pre-tax money leaving only your basis…which can then be converted to Roth. You can also do it in the reverse order. Doing it in the "right" order is easier to understand and it's very more robust. You can do it in the same year or if there's a delay or some sort, th...
by retiredjg
Sat Dec 10, 2016 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: combining TLH with tax-efficient allocation and reallocation to int'l funds
Replies: 7
Views: 212

Re: combining TLH with tax-efficient allocation and reallocation to int'l funds

Roothy wrote:I can avoid both problems you identify by taking his advice and just using a very different bond fund (like an intermediate bond fund).

Maybe. Both of those bond funds are intermediate term bond funds. So you need to look for something other than just that.
by retiredjg
Sat Dec 10, 2016 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution limit - 401k in job 1, 403b, 457b, defined contribution plan in job 2
Replies: 9
Views: 201

Re: Contribution limit - 401k in job 1, 403b, 457b, defined contribution plan in job 2

That is a lot! Wonder why 457(b) are offered for government, non-profits but not to employees of for-profit corporations. Don't look for logic when it comes to laws passed by different Congresses over spans of many decades. There isn't any. If your 457b is non-governmental, there are reasons not to...
by retiredjg
Sat Dec 10, 2016 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution limit - 401k in job 1, 403b, 457b, defined contribution plan in job 2
Replies: 9
Views: 201

Re: Contribution limit - 401k in job 1, 403b, 457b, defined contribution plan in job 2

Thanks. Didn't know 457b had a separate limit until I saw a reference in another thread today. So if over 50, one can contribute maximum, say, 18K+6K pre-tax to 401k/403b combined 20K is employer match 15k+6K hence pre-tax limit for 457b 5.5K+1K IRA That is a lot! Wonder why 457(b) are offered for ...
by retiredjg
Sat Dec 10, 2016 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: combining TLH with tax-efficient allocation and reallocation to int'l funds
Replies: 7
Views: 212

Re: combining TLH with tax-efficient allocation and reallocation to int'l funds

Interesting question. Are the two bond funds "substantially identical"? Interesting second question. Can you have a wash sale with something in a 403b? I think the answer to the first question is that nobody knows. I'm not even sure the two funds follow the same index. And even if they do,...
by retiredjg
Sat Dec 10, 2016 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution limit - 401k in job 1, 403b, 457b, defined contribution plan in job 2
Replies: 9
Views: 201

Re: Contribution limit - 401k in job 1, 403b, 457b, defined contribution plan in job 2

I agree with artgerst that the 401k and 403b share one $18k limit for elective deferrals (more if over 50) and the 457b has a separate $18k limit.

I disagree about the $53k total. If the two jobs are not related, I think there are two $53k limits.
by retiredjg
Sat Dec 10, 2016 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Which bond should i add to my 401k?
Replies: 2
Views: 232

Re: Which bond should i add to my 401k?

You would not want to put a tax exempt (municipal) bond fund in a 401k because you would have to pay tax on the earnings if in a 401k.

From the list the Prudential fund looks like it is probably the best one.
by retiredjg
Sat Dec 10, 2016 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale woes: Am I reading right that I’m off by just a day? What to do in this scenario?
Replies: 10
Views: 578

Re: Wash sale woes: Am I reading right that I’m off by just a day? What to do in this scenario?

I just completed an estimate of my year-end taxes. Newly announced, unexpected capital gains are putting us about $5,000 over the AGI cap of $75,300 AGI in the “married filing jointly” 15% tax bracket. If you really mean AGI, you have no problem because a $75,300 AGI would be well within the 15% ta...
by retiredjg
Sat Dec 10, 2016 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Where to put tax free settlement money
Replies: 1
Views: 124

Re: Where to put tax free settlement money

Savings account or CDs.

This is not money you want to put at risk. It might not be there when needed.
by retiredjg
Sat Dec 10, 2016 10:47 am
Forum: Local Chapters and Bogleheads Community
Topic: Boglehead's newest millionaire
Replies: 48
Views: 1974

Re: Boglehead's newest millionaire

Congratulations. :D

Get all your well-deserved adulation here. There is nothing good to gain from sharing this, even with Dad.
by retiredjg
Sat Dec 10, 2016 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Cashing Out Roth & Traditional IRAs. Please advise.
Replies: 14
Views: 795

Re: Cashing Out Roth & Traditional IRAs. Please advise.

I did not see this mentioned. You can withdraw ordinary contributions to Roth IRA at any age without tax or penalty. I think this has to be documented on Form 8606 (on the back) if you are not yet 59.5. You can also withdraw Roth conversions, but the rules are more complicated and there is a 5 year ...
by retiredjg
Sat Dec 10, 2016 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Long-Term Gains and taxes (early retirement strategy)
Replies: 6
Views: 378

Re: Long-Term Gains and taxes (early retirement strategy)

Am I to understand that for my first year of retirement, if my income (via dividends and interest) is below approximately $37k (putting me in the 15 percent tax bracket), I could sell these appreciated shares and pay NO capital gains taxes? There is something else to consider as well as the cap gai...
by retiredjg
Sat Dec 10, 2016 9:01 am
Forum: Personal Finance (Not Investing)
Topic: That second bank
Replies: 8
Views: 600

Re: That second bank

I would not do anything yet. Credit unions, unlike many years ago, are now often open to anyone in the community. I would not use a bank unless you move and find there are no credit unions available. Or if you can find a small local bank that doesn't charge a load of fees, that could work out too. I...
by retiredjg
Fri Dec 09, 2016 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth Ira conversion
Replies: 19
Views: 852

Re: 401K to Roth Ira conversion

Thanks retiredjg for clearing this up for me. With the information from this post, I am likely to do the conversions with the minimal tax consequences due to low income. Before doing that, it is always good to verify what you think I've said. I could be wrong (after all, I am only "just some i...
by retiredjg
Fri Dec 09, 2016 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Combining backdoor Roth and rollover of 401k after-tax contributions
Replies: 23
Views: 1771

Re: Combining backdoor Roth and rollover of 401k after-tax contributions

I don't think it is overkill. In fact, I fear many people who are doing these maneuvers fail to understand how critical it is to keep detailed records of how every penny gets into Roth IRA. And keep these records until well into their 60's. Having separate custodians may make it easier to keep recor...
by retiredjg
Fri Dec 09, 2016 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Combining backdoor Roth and rollover of 401k after-tax contributions
Replies: 23
Views: 1771

Re: Combining backdoor Roth and rollover of 401k after-tax contributions

Actually, on further looking, I wonder if you are mis-construing the "aggregation" rule. To me, that only means that all of your tIRAs are one aggregated IRA (including SEP IRA and SIMPLE IRA).
by retiredjg
Fri Dec 09, 2016 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Combining backdoor Roth and rollover of 401k after-tax contributions
Replies: 23
Views: 1771

Re: Combining backdoor Roth and rollover of 401k after-tax contributions

They essentially say that, when post-tax and pre-tax funds are mixed in a Roth:….. Perhaps this is a mis-speak, but there are no pre-tax funds in a Roth IRA. I think you meant tIRA. "as per IRC Section 408(d)(3)(A)(ii), the rules explicitly state that when a rollover occurs from an IRA to an e...
by retiredjg
Fri Dec 09, 2016 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Should I SEPP?
Replies: 11
Views: 798

Re: Should I SEPP?

boglerocks wrote:OK too bad. Are the Roth earnings taxed once they're withdrawn at 59 1/2?

If you are old enough (59.5) and the Roth IRA old enough (5 tax years), there is no tax or penalty on anything coming out of Roth IRA.
by retiredjg
Fri Dec 09, 2016 9:48 am
Forum: Investing - Help with Personal Investments
Topic: First post! Too risky portfolio? Please Advise!
Replies: 19
Views: 811

Re: First post! Too risky portfolio? Please Advise!

I came to the same conclusions as others. The 65% stock 35% bond ratio is within the numbers that are reasonable just based on age. Your emotional reaction, however, indicates it may be a little too rich for you. I suggest cutting back to 60/40 and see what that feels like. Sometimes only a 5% diffe...
by retiredjg
Fri Dec 09, 2016 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio, Allocation of Assets
Replies: 27
Views: 2644

Re: Help with portfolio, Allocation of Assets

31.5% ($64,135.78) 401k - VTTVX Vanguard Target 2025 <---this is at 65% stock and 35% bonds 46.2% ($94,156.09) IRA - FQIFX Fidelity Freedom Index 2025 <---this is at 65% stock and 35% bonds 10.8% ($21,979.42) FSTVX Fidelity Total Market Index Fund Premium Class 5.8% ($11,817.3) FTIPX Fidelity Total ...
by retiredjg
Fri Dec 09, 2016 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio, Allocation of Assets
Replies: 27
Views: 2644

Re: Help with portfolio, Allocation of Assets

In the end, what stock to bond ratio did you decide to use? Sorry, the thread is long and confusing - easier to just ask. :happy
by retiredjg
Fri Dec 09, 2016 9:21 am
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth Ira conversion
Replies: 19
Views: 852

Re: 401K to Roth Ira conversion

<-- Roth conversions have a separate 5-year clock and a new one for each conversion Technically correct, but since there is no penalty after age 59.5 so the 5 year conversion clocks are a moot point. <-- And the same rule applies to each Roth Conversion separately; earnings withdrawn prior to meeti...
by retiredjg
Fri Dec 09, 2016 8:48 am
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth Ira conversion
Replies: 19
Views: 852

Re: 401K to Roth Ira conversion

I think Roth conversion for a few years is a good idea, perhaps combined with tax gain harvesting if that is something that meets your needs as well. It might be best to pay the tax out of savings or another taxable account. However, since you are over 59.5, you could take money out of the 401k (pay...
by retiredjg
Fri Dec 09, 2016 8:43 am
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth Ira conversion
Replies: 19
Views: 852

Re: 401K to Roth Ira conversion

The down side is that I start a 5 year rule on the earnings from each conversion. This is not exactly correct. Since you are over age 59.5, the only thing your Roth IRA has to do is reach the age of 5 tax years (which might be only 4 years and 364 days). If you already have a Roth IRA, that may hav...
by retiredjg
Fri Dec 09, 2016 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Just too conservative for my own good
Replies: 18
Views: 1944

Re: Just too conservative for my own good

hawkfan55 wrote: I do think we are at an AA we can live with but with thoughts of what might have been. :oops:

Have you considered that you were investing according to your own personal risk tolerance? Exceeding that threshold is not wise. You may have been investing exactly where you should have been.
by retiredjg
Fri Dec 09, 2016 8:10 am
Forum: Investing - Help with Personal Investments
Topic: three-fund portfolio help: employer 401k choices
Replies: 5
Views: 236

Re: three-fund portfolio help: employer 401k choices

Wells Fargo Stable Return Fund Vanguard Total Bond Market Index Trust <---Total Bond Neuberger Berman High Income Bond R6 (NRHIX) Loomis Sayles Core Plus Bond Y Bond Funds (NERYX) Vanguard Windsor II Fund - Admiral (VWNAX) Vanguard Institutional 500 Index Trust <---part of Total Stock Fidelity Cont...
by retiredjg
Fri Dec 09, 2016 8:02 am
Forum: Investing - Help with Personal Investments
Topic: REIT from outside acct -> vanguard
Replies: 4
Views: 333

Re: REIT from outside acct -> vanguard

Call Vanguard and have them figure it out.

I don't think there is anything in particular about REIT funds that would require "maturing". However, there may be something about your particular REIT holding that requires "maturing" or paying a surrender fee.
by retiredjg
Fri Dec 09, 2016 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Should I SEPP?
Replies: 11
Views: 798

Re: Should I SEPP?

I just did some more reading about Roth IRAs and I can't find anything that indicates this isn't how it works: I thought I'd be able to convert $10k now, pay the tax now, turn it into $20k over 5 years, and then withdraw that $20k tax-free. Would I be able to do that? No. Earnings that occur once m...
by retiredjg
Thu Dec 08, 2016 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Verify my Backdoor Roth Procedure
Replies: 5
Views: 275

Re: Verify my Backdoor Roth Procedure

What paperwork do you mean, and how do I "figure it out" haha. I'm not being a jerk I'm really wondering what you mean. I posted here to see if this procedure would work, but if there's something I'm not considering I'd like to hear about it. Like you, a lot of people seem to hear about t...
by retiredjg
Thu Dec 08, 2016 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: Verify my Backdoor Roth Procedure
Replies: 5
Views: 275

Re: Verify my Backdoor Roth Procedure

I believe the fact that wife and I both have IRA's means we cannot do the backdoor roth ira, correct? You can do it, but you wouldn't want to because the conversion would be pro-rated with the IRAs. This does not produce the desired result and is something you don't want to get into. If that's the ...
by retiredjg
Thu Dec 08, 2016 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Combining backdoor Roth and rollover of 401k after-tax contributions
Replies: 23
Views: 1771

Re: Combining backdoor Roth and rollover of 401k after-tax contributions

People here are very much aware of the aggregation of IRAs and the pro-rating rules and the Kitces article(s). These things are discussed endlessly. Perhaps way too endlessly. :happy However, the IRS simply has no requirement that the pre-tax IRA money is out of IRA at the time of Roth conversion. A...
by retiredjg
Thu Dec 08, 2016 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Debt Collection question
Replies: 18
Views: 1393

Re: Debt Collection question

There is probably no clear answer to this. I think this might depend on the debt. Some might simply disolve and some may not.
by retiredjg
Thu Dec 08, 2016 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: Combining backdoor Roth and rollover of 401k after-tax contributions
Replies: 23
Views: 1771

Re: Combining backdoor Roth and rollover of 401k after-tax contributions

OcotalNica, welcome to the forum. :happy I stand by what I said. If you work the problem both ways through Form 8606 with a pencil, I think you will see why. Pay particular attention to line 6 and you will see that It only matters what you have in tIRA at the end of the year, not on the day you do t...
by retiredjg
Thu Dec 08, 2016 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Prioritization order of Prudential 401k, Voya 403b and 457b?
Replies: 14
Views: 756

Re: Prioritization order of Prudential 401k, Voya 403b and 457b?

I guess one possibility to consider is preferring the Prudential account now and prefer the Voya account later - so the amount of money exposed to the higher costs is smaller for a longer time. If that made sense.
by retiredjg
Thu Dec 08, 2016 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Prioritization order of Prudential 401k, Voya 403b and 457b?
Replies: 14
Views: 756

Re: Prioritization order of Prudential 401k, Voya 403b and 457b?

There might be some very small differences in Vanguard funds vs other index funds, but for the most part, all you have to look at is the cost. In fact, the main reason that Vanguard gets so many recommendations is not some sort of Vanguard special sauce - it is because Vanguard is usually the lowest...
by retiredjg
Thu Dec 08, 2016 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Prioritization order of Prudential 401k, Voya 403b and 457b?
Replies: 14
Views: 756

Re: Prioritization order of Prudential 401k, Voya 403b and 457b?

Did you find this information by clicking a link in the Prudential link you gave us?

http://www3.prudential.com/email/retire ... 006-00.pdf

Looks like Prudential is cheaper for the 500 index. Not sure about other funds.
by retiredjg
Thu Dec 08, 2016 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Prioritization order of Prudential 401k, Voya 403b and 457b?
Replies: 14
Views: 756

Re: Prioritization order of Prudential 401k, Voya 403b and 457b?

We can't see the expense ratios of the funds available in the Voya plans. You would need to look each up and add the annual fee to the ER to know what each fund costs.

The Prudential plan looks good. My guess is that it is the better of the options.
by retiredjg
Thu Dec 08, 2016 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Quick backdoor Roth question
Replies: 2
Views: 143

Re: Quick backdoor Roth question

"This point in time" is not relevant. The point in time that counts is December 31 of the year in which you do a Roth conversion (step 2 of the back door). So you should be fine as long as you don't roll anything (like a 401k) into IRA before the end of the year. Assuming you don't have an...
by retiredjg
Thu Dec 08, 2016 10:57 am
Forum: Personal Finance (Not Investing)
Topic: want to buy property, abandoned trailer on it
Replies: 39
Views: 2424

Re: want to buy property, abandoned trailer on it

This is good. :D

Do you really mean "moved contingent on sale?" Or making an offer with the sale being contingent on the trailer being removed before closing?
by retiredjg
Thu Dec 08, 2016 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Any reason not to sprinkle in some small cap index?
Replies: 14
Views: 1260

Re: Any reason not to sprinkle in some small cap index?

Thank you all for your responses. After a very bad experience with an advisor we moved our portfolio to the 3-fund in May/June of this year. It's so simple and I love that but that doesn't mean I don't read the other posts about Reits, Small caps, etc. and wonder why I don't have any of this or tha...
by retiredjg
Thu Dec 08, 2016 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA rules [Qualify based on marital status?]
Replies: 3
Views: 260

Re: Roth IRA rules [Qualify based on marital status?]

I think you should be filing as "married filing separately" which is a different category from "single". Since you have lived with your husband at some point in 2016 and if your income is more than $10k, you probably cannot contribute to Roth IRA for 2016. Unless there is an exce...
by retiredjg
Thu Dec 08, 2016 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Trade in IRA, hold in taxable?
Replies: 9
Views: 299

Re: Trade in IRA, hold in taxable?

Keep in mind, especially if you transition, that wash sales might be an issue. On the philosophical side, I'm not fond of "messing around" with IRA money. Frequent trading of individual stocks would be "messing around" in my book. I'd rather do that in taxable and try to control ...
by retiredjg
Thu Dec 08, 2016 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Trade in IRA, hold in taxable?
Replies: 9
Views: 299

Re: Trade in IRA, hold in taxable?

If you must buy and sell stocks, this change makes some sense. If this is a "play" account, perhaps there is no harm done.

If it is a significant portion of your portfolio, the better move is to stop doing it. :happy
by retiredjg
Thu Dec 08, 2016 9:25 am
Forum: Investing - Help with Personal Investments
Topic: Year End Conversion IRA to ROTH Advice
Replies: 12
Views: 817

Re: Year End Conversion IRA to ROTH Advice

Trying to get something done between now and the end of the year is just a recipe for unnecessary stress. Convert to Roth wherever the money is today. That should take a day or two at most. Then start the transfer process whenever you want.
by retiredjg
Thu Dec 08, 2016 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Moving an IRA to another brokerage
Replies: 10
Views: 665

Re: Moving an IRA to another brokerage

I'd keep looking for a cheaper place.

Have you checked to see if there is a certain time by which you must get the SEP set up before the new year? I don't know that there is one, just wondering.
by retiredjg
Thu Dec 08, 2016 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Non Roth, After Tax 401(K) Contribution - Question about Qualified Compensation
Replies: 6
Views: 406

Re: Non Roth, After Tax 401(K) Contribution - Question about Qualified Compensation

Anyone know of plans that allow employee after tax contributions by employee check? Walletless (as posted above). I recall hearing of this at least 2 other times, however, I can't say for sure that it was different people or the same person posting it at different times. I recall one person specifi...
by retiredjg
Thu Dec 08, 2016 7:39 am
Forum: Investing - Help with Personal Investments
Topic: TSP Allocations 43 yr old
Replies: 30
Views: 2116

Re: TSP Allocations 43 yr old

Rad-1 wrote:Please Correct me if I am wrong here guys.

Your concern is misplaced.

Everybody agrees that fees are important, but the L Funds have the exact same expense ratio as the other funds in the TSP. There are no extra fees for the L funds as the result of frequent rebalancing.
by retiredjg
Wed Dec 07, 2016 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Moving an IRA to another brokerage
Replies: 10
Views: 665

Re: Moving an IRA to another brokerage

retiredjg, I'm self-employed and the SEP is from my own business which is still operating. Should I be able to roll that over? If not, I suppose I could roll over my TIRA and Roth and leave the SEP at Scottrade. I assume you can move the SEP IRA to any custodian you choose. I don't know if that has...

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