Search found 28457 matches

by retiredjg
Sun Apr 23, 2017 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 28
Views: 1950

Re: Differential aggressiveness for ROTH vs 401K

Are there any scenarios where putting the Roth in the investment with a lower return would be a good idea? A couple of people have reported over the years that they don't want their Roth space to shrivel during times of market upheavel. I think one puts both stocks and bonds in Roth and one filled ...
by retiredjg
Sun Apr 23, 2017 6:58 am
Forum: Investing - Help with Personal Investments
Topic: VG Advisory Services
Replies: 5
Views: 269

Re: VG Advisory Services

I'm inclined to stay our course (no international bond exposure) for simplicity sake. I'm thinking making this change, or not, will not amount to a noticeable difference either way, even many years down the road. What do you think? I think about the same thing as you. I have no particular opinion o...
by retiredjg
Sun Apr 23, 2017 6:04 am
Forum: Investing - Theory, News & General
Topic: Location of SPIAs, which account?
Replies: 26
Views: 971

Re: Location of SPIAs, which account?

I'll have to look into this more. I thought I had heard they actually count as your RMD. Of course, if you make the IRA smaller buy buying the SPIA, you would reduce the RMD, maybe by a lot. The SPIA payout fulfills the RMD requirements for the assets that are annuitized. Remaining trad assets that...
by retiredjg
Sun Apr 23, 2017 5:49 am
Forum: Investing - Help with Personal Investments
Topic: Grow my taxable index fund, or contribute to a non-matching 403b?
Replies: 27
Views: 1707

Re: Grow my taxable index fund, or contribute to a non-matching 403b?

I don't think we are clear yet on whether there is a cost added on to the ERs in the 403b plan. Depending on that extra cost (there frequently is one), either plan could be a good one. The thing that might make the 457b more attractive is that the money is available to you any time after separation ...
by retiredjg
Sun Apr 23, 2017 5:37 am
Forum: Investing - Help with Personal Investments
Topic: Where to Place Bonds (Revisited)
Replies: 6
Views: 499

Re: Where to Place Bonds (Revisited)

Advaita wrote:To be clear I intend to max out the 403b and 457b, just unsure whether to purchase bonds in them.

Yes. That is where your bonds should be.
by retiredjg
Sat Apr 22, 2017 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: PMI and too much in tax-deferred?
Replies: 4
Views: 319

Re: PMI and too much in tax-deferred?

I think it is better to have the 20% and avoid the PMI. You might be able to do that if you save less for retirement for a year or so. Right now, you are saving quite a bit, so backing off on it seems OK to me. Have you checked to see if you can get the same interest rates by putting down only 10%? ...
by retiredjg
Sat Apr 22, 2017 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Where to Place Bonds (Revisited)
Replies: 6
Views: 499

Re: Where to Place Bonds (Revisited)

I'd put the bonds in the 403b and/or 457b and keep mostly or all stocks in the Roth IRA.
by retiredjg
Sat Apr 22, 2017 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Just left my company and exercised my options [invest now or DCA?]
Replies: 5
Views: 344

Re: Just left my company and exercised my options [invest now or DCA?]

The money was invested in stocks recently (sort of). If you want to stay at your same asset allocation, you will invest it immediately in stocks again. There is no reason in the world to DCA money that has just come out of the market. It's a sideways move. Edit: I think I misinterpreted what you mea...
by retiredjg
Sat Apr 22, 2017 4:59 pm
Forum: Investing - Theory, News & General
Topic: Location of SPIAs, which account?
Replies: 26
Views: 971

Re: Location of SPIAs, which account?

I think the SPIA can count as your RMDs (but check to be sure). Vanguard has specifically said that premiums used to buy SPIAs are exempt from RMDs. I heard it in a podcast interview from them, but you could contact them to verify it. Other money left in the tax deferred space will, of course, stil...
by retiredjg
Sat Apr 22, 2017 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 16
Views: 721

Re: Need help setting up backdoor Roth IRA

The 2012 and 2013 AGI are before the audit, IRS raised the number significantly. This worries me a little. If the IRS audit raised the number significantly, that $9800 should not have been deductible after the audit. If so, only part of what I said above is correct. Do you have an amended 1040 for ...
by retiredjg
Sat Apr 22, 2017 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 16
Views: 721

Re: Need help setting up backdoor Roth IRA

So it appears to me that 2013 is the only year for which you made non-deductible contributions. And it was a single contribution of $5,500 to His TIRA. None were made to Her TIRA for that year. Do I have it right? If so, you would download the 2013 Form 8606 from the internet and fill in lines 1 and...
by retiredjg
Sat Apr 22, 2017 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: A Little History
Replies: 11
Views: 979

Re: A Little History

Ah, those were the days when you could "assume" someone else's low mortgage. That's long gone!
by retiredjg
Sat Apr 22, 2017 4:28 pm
Forum: Investing - Theory, News & General
Topic: Location of SPIAs, which account?
Replies: 26
Views: 971

Re: Location of SPIAs, which account?

You are going to have to start taking money out of the IRA at 70.5 anyway. I think the SPIA can count as your RMDs (but check to be sure). Seems like that is the place to take it from. Apparently you won't need all your money. I'd leave the Roth IRAs and the taxable account for heirs since they will...
by retiredjg
Sat Apr 22, 2017 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 16
Views: 721

Re: Need help setting up backdoor Roth IRA

For 2013, the modified AGI limit for deducting contributions to IRA was $95k if each of you had a plan at work. Since your AGI was $125k, I think it is almost certain the contributions for 2013 were non-deductible. If it turns out one of you did not have a plan at work in 2013, I'll have to dig furt...
by retiredjg
Sat Apr 22, 2017 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 16
Views: 721

Re: Need help setting up backdoor Roth IRA

P.S. The AGIs that you gave us - was that after the audit or before?
by retiredjg
Sat Apr 22, 2017 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 16
Views: 721

Re: Need help setting up backdoor Roth IRA

I did not find any Form 8606 in the last five years worth of returns. The form will only be generated if you tell your tax software or your tax preparer that you made a non-deductible contribution to IRA. I'll see if I can find the income limits for 2012 and 2013. Do you still have those tax record...
by retiredjg
Sat Apr 22, 2017 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: typical deductions for retirees
Replies: 12
Views: 894

Re: typical deductions for retirees

State taxes?

Here's a list from the IRS that might be helpful. Sounds to me like you may fall into the standard deduction. I was surprised when I did, even having a mortgage.

The standard deduction goes up at age 65. I think it goes up about $1,500.
by retiredjg
Sat Apr 22, 2017 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Tax sheltered accounts - tax efficiency vs. growth
Replies: 4
Views: 393

Re: Tax sheltered accounts - tax efficiency vs. growth

I have no idea how being a non-permanent resident affects this. I'd would suggest that you fill the 401k/IRA with bonds and REIT (which are stocks) and put your stock funds and tax-exempt bond funds in your taxable account. If the concierge's advice makes sense to you, go ahead. It will simply push ...
by retiredjg
Sat Apr 22, 2017 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: safest way to do a TSP60 transfer from Vanguard?
Replies: 4
Views: 265

Re: safest way to do a TSP60 transfer from Vanguard?

You could move your $100k into money market and let it sit there while the paperwork is in transit. You won't make any money, but you won't lose any either. Since it is going into G Fund, moving it to money market will just start your risk lowering sooner. Seems like I did it by snail mail or maybe ...
by retiredjg
Sat Apr 22, 2017 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with mixed Traditional IRA
Replies: 1
Views: 104

Re: Need help with mixed Traditional IRA

There is a special ruling that says that you can drain all the pre-tax money out of the IRA, leaving only the basis. (That's not how it is worded, but you get the idea.) So you can roll $27k from the Vanguard account into the 401k, possibly being asked to certify that all that money is pre-tax. This...
by retiredjg
Sat Apr 22, 2017 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 28
Views: 1950

Re: Differential aggressiveness for ROTH vs 401K

Are there any scenarios where putting the Roth in the investment with a lower return would be a good idea? A couple of people have reported over the years that they don't want their Roth space to shrivel during times of market upheavel. I think one puts both stocks and bonds in Roth and one filled ...
by retiredjg
Sat Apr 22, 2017 1:10 pm
Forum: Investing - Theory, News & General
Topic: Excel Solver for Portfolio Rebalancing across Multiple Accounts
Replies: 13
Views: 1404

Re: Excel Solver for Portfolio Rebalancing across Multiple Accounts

I know this sounds old fashioned, but this is easily done with a pencil and paper and maybe a little hand held calculator. I've done hundreds of these with no more tools than that, many with 6 to 10 or even more accounts. I replicated funds in multiple accounts so that it would make rebalancing poss...
by retiredjg
Sat Apr 22, 2017 9:32 am
Forum: Investing - Help with Personal Investments
Topic: A few questions about International... VXUS, VEA, VWO... low returns
Replies: 13
Views: 749

Re: A few questions about International... VXUS, VEA, VWO... low returns

Christian, when you speak in "ticker" you will get less help because people are not willing to look then all up. If you want the widest range of responses, do all that you can to make it easy to help you. :happy
by retiredjg
Sat Apr 22, 2017 8:50 am
Forum: Investing - Help with Personal Investments
Topic: What bond index recommendations for $10K in Roth IRA?
Replies: 11
Views: 914

Re: What bond index recommendations for $10K in Roth IRA?

Since the Roth IRA is already at Fidelity, why not just use their Total Bond Market Index FSITX? Or their intermediate treasury index?
by retiredjg
Sat Apr 22, 2017 8:33 am
Forum: Investing - Theory, News & General
Topic: Why are pensions revered, but annuities reviled?
Replies: 54
Views: 3824

Re: Why are pensions revered, but annuities reviled?

Agreed. SPIA's are generally not reviled around here. The other kinds of annuities (names keep changing...) often have high fees and serve the salesperson more than the customer.
by retiredjg
Sat Apr 22, 2017 8:30 am
Forum: Investing - Help with Personal Investments
Topic: VPAS Investment Plan Check
Replies: 3
Views: 230

Re: VPAS Investment Plan Check

It is confusing. And on second look....there are no bonds mention in the proposal. That seems odd.
by retiredjg
Sat Apr 22, 2017 8:21 am
Forum: Investing - Help with Personal Investments
Topic: VPAS Investment Plan Check
Replies: 3
Views: 230

Re: VPAS Investment Plan Check

1. Correct to cash out of Betterment after 1 year plus day mark? Same with USAA mutual funds? How long is a year? What are the current gains now? If your gains are small, I would not wait a year to get out of something I don't want any more. If the year is soon and most of your gains will be long t...
by retiredjg
Sat Apr 22, 2017 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Should I transfer money from a fund when its near all time high?
Replies: 4
Views: 394

Re: Should I transfer money from a fund when its near all time high?

Should I take some profits and move a portion of it or just leave it alone? I have 20 years before retirement. It depends. If this is your only fund, you should probably sell some and add some bonds to your portfolio. If you have other funds already and it is time to rebalance back to your desired ...
by retiredjg
Sat Apr 22, 2017 7:58 am
Forum: Investing - Help with Personal Investments
Topic: Fed and newbie boglehead seeking portfolio advice
Replies: 3
Views: 357

Re: Fed and newbie boglehead seeking portfolio advice

... I’m starting to feel we may be taking too much risk. That's your answer. 2. Asset location/specific holdings: Welcome recommendations on changing current TSP/Vanguard funds and allocating future contributions to further simplify and reduce already-low expenses. Our collection of 2030, 2045 and ...
by retiredjg
Sat Apr 22, 2017 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 16
Views: 721

Re: Need help setting up backdoor Roth IRA

OK, let's back up then. HUSBAND Trad IRA Value: $15,700 Contribution: $10,300 (from years 2012/2013) Gain: $5,400 Where did the contribution of $10,300 come from? Was that from contributions that you deducted from your taxable income? Or a rollover from a work plan? Or was it from contributions that...
by retiredjg
Fri Apr 21, 2017 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 16
Views: 721

Re: Need help setting up backdoor Roth IRA

Is the money in each tIRA pre-tax or could there be some "basis" in there, say...from a non-deductible contribution to IRA? The answer may not be the same for both of you.

If any contributions were non-deductible, did you file the Form 8606 for those contributions?
by retiredjg
Fri Apr 21, 2017 7:18 pm
Forum: Investing - Help with Personal Investments
Topic: [Should I invest in an IPO?]
Replies: 11
Views: 930

Re: [Should I invest in an IPO?]

I have not read the other replies. In general, investing in any IPO is a gamble and frequently a losing proposition. Invest only what you are willing and able to lose. If you invest $100 and it goes big, you'll have a little extra spending money and some bragging rights. If you invest $100 and it fl...
by retiredjg
Fri Apr 21, 2017 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Grow my taxable index fund, or contribute to a non-matching 403b?
Replies: 27
Views: 1707

Re: Grow my taxable index fund, or contribute to a non-matching 403b?

zayd13 wrote:That's correct, I work for a public university, and they do have a 457b option. Do you mean instead of or in addition to the 403b?

Instead of if the costs are lower. In addition to if you can save that much.
by retiredjg
Fri Apr 21, 2017 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: SP500, Russel 2000 and mid caps?
Replies: 24
Views: 1706

Re: SP500, Russel 2000 and mid caps?

Tx-Man, it might be helpful to know what you are asking the question. What are you trying to accomplish?
by retiredjg
Fri Apr 21, 2017 10:24 am
Forum: Investing - Help with Personal Investments
Topic: SP500, Russel 2000 and mid caps?
Replies: 24
Views: 1706

Re: SP500, Russel 2000 and mid caps?

Hmmm, I get a different number..... :happy

But either way, I simply do not believe that investing needs to be that precise. Anywhere in the ball park is good enough in my book. In fact, if a person chooses to use only a 500 index, they are going to end up at essentially the same place.
by retiredjg
Fri Apr 21, 2017 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Grow my taxable index fund, or contribute to a non-matching 403b?
Replies: 27
Views: 1707

Re: Grow my taxable index fund, or contribute to a non-matching 403b?

It's a bear of a list. I finally did searches on index and ind and idx and found the ones I found. All in all, a very good list, just unwieldy, especially if you don't know what specifically you are looking for.
by retiredjg
Fri Apr 21, 2017 9:41 am
Forum: Investing - Help with Personal Investments
Topic: SP500, Russel 2000 and mid caps?
Replies: 24
Views: 1706

Re: SP500, Russel 2000 and mid caps?

You may be correct, but that is not what the morningstar instant x-ray shows (as posted above by Duckie). Since every index and every financial website use different cutoffs for what is large, mid, and small, it's all relative and what you are saying may be correct according to the definitions you u...
by retiredjg
Fri Apr 21, 2017 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Grow my taxable index fund, or contribute to a non-matching 403b?
Replies: 27
Views: 1707

Re: Grow my taxable index fund, or contribute to a non-matching 403b?

Looking again, I did find the international index which is a more complete fund than the Global except US that I mentioned above.

There is also the Four in One index which is a very nice fund if you want an all-in-one and the stock to bond ratio suits you.
by retiredjg
Fri Apr 21, 2017 9:11 am
Forum: Investing - Help with Personal Investments
Topic: Grow my taxable index fund, or contribute to a non-matching 403b?
Replies: 27
Views: 1707

Re: Grow my taxable index fund, or contribute to a non-matching 403b?

You should use the 403b for sure. Deferring tax, especially in your bracket, usually provides you with more money in the long run. That is a very long list of funds available. I didn't see the ones that ruralavalon mentioned, but I saw some equally as good. -500 Index -Extended Market Index -Global ...
by retiredjg
Fri Apr 21, 2017 7:57 am
Forum: Investing - Help with Personal Investments
Topic: Neophyte Boglehead Humbly Requests 403(b) Allocation Input
Replies: 3
Views: 244

Re: Neophyte Boglehead Humbly Requests 403(b) Allocation Input

Welcome to the forum! You've obviously done a lot of reading and planning. I think your proposed stock to bond ratio of 80/20 is reasonable. I see no need for putting part of your allocation in actively managed funds and I doubt you will find a lot of support for that here. The thorn in the rose bus...
by retiredjg
Fri Apr 21, 2017 6:05 am
Forum: Investing - Help with Personal Investments
Topic: SP500, Russel 2000 and mid caps?
Replies: 24
Views: 1706

Re: SP500, Russel 2000 and mid caps?

The S&P 500 and the Russell 2000 pretty much do cover the entire market. A tilt to one direction or the other would depend on the ratio of the two funds together. One ratio would tilt to large cap, another would tilt to mid/small cap.
by retiredjg
Thu Apr 20, 2017 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Funds Selection Assistance (Updated)
Replies: 5
Views: 431

Re: IRA Funds Selection Assistance (Updated)

When buying mutual funds, it does not happen during the trading day. It happens after hours. It sounds like you may have put in your order after hours which means the "buy" happens after hours the following market day. This is not a Vanguard thing but a mutual fund thing. Stocks and ETFs w...
by retiredjg
Thu Apr 20, 2017 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 28
Views: 1950

Re: Differential aggressiveness for ROTH vs 401K

You will hear varying opinions on this. I think this decision is so far down the decision tree that is simply does not matter much. Other things are more important and should be give more consideration. For example... -how much you save in each account (filling tax-advantaged accounts first) -having...
by retiredjg
Thu Apr 20, 2017 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: Help - 3 fund @ Fidelity
Replies: 8
Views: 487

Re: Help - 3 fund @ Fidelity

Yes....if you are looking for about 64% stock and 33% bonds. The 3 fund portfolio can be divided up any way you want - it does not have to be 64% stock and 33% bonds. And it is not always 1/3rd and 1/3rd and 1/3rd.
by retiredjg
Thu Apr 20, 2017 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: SP500, Russel 2000 and mid caps?
Replies: 24
Views: 1706

Re: SP500, Russel 2000 and mid caps?

Any reason not to use a Russell 1000 fund like VONE or VTCLX instead of the S&P500 or, alternatively, an S&P completion index fund (like VXF) instead of the Russell 2000 fund? The most common reason is that the "best" building block pairs may not be available in one's work plan. S...
by retiredjg
Thu Apr 20, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Help - 3 fund @ Fidelity
Replies: 8
Views: 487

Re: Help - 3 fund @ Fidelity

We've frequently seen Vanguard funds in Fidelity 401k plans in the past. They usually have some Fidelity actively managed funds available too. And I think brokerage links as well. If you have a free brokerage link (to Fido's other funds), they have an international fund that would be more complete t...
by retiredjg
Thu Apr 20, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: SP500, Russel 2000 and mid caps?
Replies: 24
Views: 1706

Re: SP500, Russel 2000 and mid caps?

This Wiki page thinks it is about 85% and 15%. Looks like a tiny bit of mid cap is left out, but this is certainly good enough.

https://www.bogleheads.org/wiki/Approxi ... ock_market
by retiredjg
Thu Apr 20, 2017 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Help - 3 fund @ Fidelity
Replies: 8
Views: 487

Re: Help - 3 fund @ Fidelity

Using my best judgement I have narrowed it down to the following 3: Vanguard Developed Markets Index Fund Vanguard Institutional Index Fund Institutional Vanguard Total Bond Market Index Fund Good job! This is not the entire 3 fund portfolio, but it is close enough and definitely will do. If you wa...
by retiredjg
Thu Apr 20, 2017 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 2955

Re: How to reduce my income tax

I don't see many ways to reduce your income tax myself. The HSA could help, but only if that type of health plan is available to you and appropriate for your family's needs. It is not for everybody. You could look at I Bonds which can be tax-deferred for up to 30 years. Mostly, I think you need to s...

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