Search found 29373 matches

by retiredjg
Mon Jul 24, 2017 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement plan for a small business- Which one should I choose?
Replies: 1
Views: 116

Re: Retirement plan for a small business- Which one should I choose?

Doesn't sound like SIMPLE IRA is the way to go. Check out Employee Fiduciary, a company that apparently has done a good job of offering low cost 401k plans for a small business. Also, a lot of the robos (there are now many) are putting 401k plans out there. We have heard little about them, but it co...
by retiredjg
Mon Jul 24, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI and Medicare
Replies: 29
Views: 1591

Re: MAGI and Medicare

ResearchMed wrote:Aren't SEP IRA contributions allowed after 70.5 if one has self-employment income?

Not sure. As I understand it, a SEP is a kind of traditional IRA, but SEP contributions are made by the employer, not the employee. So maybe the rules are different.
by retiredjg
Mon Jul 24, 2017 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: 401(k) Conversion to Roth IRA while still in a low tax bracket?
Replies: 1
Views: 123

Re: 401(k) Conversion to Roth IRA while still in a low tax bracket?

Your 2017 tax bracket is a critical piece of this puzzle. And how quickly you expect your tax bracket to rise over your career might matter. For example if this is the last year (or few years) you'll be in the 25% bracket for the rest of your career, then yes, you would probably want to convert it i...
by retiredjg
Mon Jul 24, 2017 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI and Medicare
Replies: 29
Views: 1591

Re: MAGI and Medicare

spencer99 wrote:I thought (could be wrong) that contribution to a traditional IRA was not permitted >= age 70. Does that ring a bell anyone?

Age 70.5 rings a bell with me, but I don't think they are talking about making contributions. I think they are talking about taking RMDs instead.
by retiredjg
Mon Jul 24, 2017 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Investing Windfall - CD's or Bonds or follow AA question
Replies: 20
Views: 674

Re: Investing Windfall - CD's or Bonds or follow AA question

You really should just go ahead and invest it at your desired stock to bond ratio if you can. If you can't then, yes, CDs are considered a fixed income asset and can be counted in your bonds. The fact that you are not willing to just throw it all in should cause you to wonder if you are not entirely...
by retiredjg
Mon Jul 24, 2017 1:09 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 28
Views: 2209

Re: Living Off Dividends

The reason to hold bonds is to stabilize the portfolio. A 100% stock portfolio may drop 50% in a crash. If the investor would have no feelings about that, there is no problem as long as the dividends continue on. But it would be a rare investor who would have no feelings about that. And you cannot d...
by retiredjg
Mon Jul 24, 2017 10:12 am
Forum: Personal Finance (Not Investing)
Topic: PMI - Why So Much Hate? [Private Mortgage Insurance]
Replies: 13
Views: 1164

Re: PMI - Why So Much Hate?

In many circumstances, if you cannot or have not saved something near 20% for your downpayment, you can't afford a house. Or at least that house. I know not everyone agrees and I also know this puts a particularly onerous burden on people in HCOL areas. Just where did PMI come from in the first plac...
by retiredjg
Mon Jul 24, 2017 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 438

Re: Alternative Investments best use of expensive 401k?

I kept it short to not complicate things; but let me fill in some details. Given my 15% bracket I use most of my tax-sheltered space for bonds: my Roths, my wife's 401k, my own legacy low-cost 401k from previous employer. (The only exception is legacy TIAA RE since I can't get that in taxable space...
by retiredjg
Mon Jul 24, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: help with roth and taxable account
Replies: 25
Views: 1247

Re: help with roth and taxable account

There are two ways to achieve 70/30. The Vanguard Target 2030 fund is currently at 72% stocks and 28% bonds. It will be at 70/30 in 2 or 3 years and will continue to migrate toward more bonds after that. The other way is to buy half LifeStrategy Growth (80/20) and half LifeStrategy Moderate Growth (...
by retiredjg
Sun Jul 23, 2017 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: help with roth and taxable account
Replies: 25
Views: 1247

Re: help with roth and taxable account

You are picking funds before you pick a stock to bond ratio. Reverse that. Pick a stock to bond ratio and we will help you pick the funds to match it.
by retiredjg
Sun Jul 23, 2017 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 438

Re: Alternative Investments best use of expensive 401k?

Sorry, I don't think your reasoning is sound. I think you should use the Total STock and the Total Bond. Why? On the Total Bond Fund with yield of 2.4, I'd lose a third right off the top! Well, do you have other accounts to hold all your bonds? There could be other solutions, but we have not seen t...
by retiredjg
Sun Jul 23, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 438

Re: Alternative Investments best use of expensive 401k?

Sorry, I don't think your reasoning is sound. I think you should use the Total STock and the Total Bond. I also think you might have a good argument that your employer is not meeting its fiduciary duty to the employees with this plan. Of course, nobody knows, but it is something to consider bringing...
by retiredjg
Sun Jul 23, 2017 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI and Medicare
Replies: 29
Views: 1591

Re: MAGI and Medicare

I didn't know that. Thanks for the info.

I guess more than 5% will be paying the higher premiums for awhile. :D
by retiredjg
Sun Jul 23, 2017 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: 50yo 80/20 AA please evaluate
Replies: 7
Views: 934

Re: 50yo 80/20 AA please evaluate

My main concern is his current AA of 80/20. Is this too aggressive given his situation? It is certainly very aggressive for his age. I'm not in favor or running on the red line to "catch up". I'd suggest dropping it to 70/30 which is still aggressive for his age. Maybe even lower. I know ...
by retiredjg
Sun Jul 23, 2017 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: How do I get back to my asset allocation?
Replies: 10
Views: 951

Re: How do I get back to my asset allocation?

Having made this mistake and having realized you made the mistake....you should re-evaluate and pick a stock to bond ratio that you are willing to live with in the bad times as well as the good times. That number may or may not be 65% stock and 35% bonds. If you are not willing to stick with 65/35 w...
by retiredjg
Sun Jul 23, 2017 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Should I convert my tIRA to a Roth? (Pro rata rule)
Replies: 8
Views: 445

Re: Should I convert my tIRA to a Roth? (Pro rata rule)

I have a solo 401k with Vanguard already. My company 401k is also with Vanguard. I think I've read Vanguard doesn't allow movement from a tIRA to 401k? Correct me if that is wrong. That is correct. Vanguard's Solo will not accept the rollover. Fidelity's (and some others) will. This will probably b...
by retiredjg
Sun Jul 23, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI and Medicare
Replies: 29
Views: 1591

Re: MAGI and Medicare

I'm not sure I can help much, but here's a start. I hope I'm not off in the weeds on this. Here's my source. https://www.ssa.gov/pubs/EN-05-10536.pdf Medicare subsidies vary based on MAGI, which raises the issue of what MAGI actually is. According to the link, To determine if you’ll pay higher premi...
by retiredjg
Sun Jul 23, 2017 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Should I convert my tIRA to a Roth? (Pro rata rule)
Replies: 8
Views: 445

Re: Should I convert my tIRA to a Roth? (Pro rata rule)

A conversion will add $105k to your taxable income. If that pushes you into the 39.6% tax bracket, you will pay tax at 39.6% federal, maybe some state tax, and could be more on top of that. It is hard to see how this could be a good idea just to get a few thousand dollars into Roth each year. Rothne...
by retiredjg
Sun Jul 23, 2017 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: How to use a non-government 457b?
Replies: 2
Views: 233

Re: How to use a non-government 457b?

There are a couple of issues with non-governmental 457b plans. 1) Poor withdrawal options. As discussed in the thread linked by blueman, sometimes the withdrawal options are bad. If there is no possibility of a 10 year withdrawal period or some other flexible option, I would not use the 457b at all....
by retiredjg
Sun Jul 23, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: help with roth and taxable account
Replies: 25
Views: 1247

Re: help with roth and taxable account

sleevelessjerry, I think using an all-in-one fund might be a good idea for you. There are two different ones to consider at Vanguard - the Target Retirement series of funds and the LifeStrategy series of funds. These both contain the same funds - total stock index, total international index, total b...
by retiredjg
Sun Jul 23, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: help with roth and taxable account
Replies: 25
Views: 1247

Re: help with roth and taxable account

whay is difference between ira and roth thanks If you put money into traditional IRA, you lower your taxable income now, but you pay taxes on that money and it's earnings later when you take the money out. If you put money into Roth IRA now, you do not lower your taxes now, but that money is not ta...
by retiredjg
Sun Jul 23, 2017 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Helping parents invest IRA
Replies: 10
Views: 517

Re: Helping parents invest IRA

Far be it from me to disagree with Christine Benz, but her point would not mean much to me in your circumstance. There are so many reasons to put that money into one fund, I just can't see a good reason not to. Rebalancing, deciding where the RMD should come from , questions from siblings, etc. Espe...
by retiredjg
Sun Jul 23, 2017 9:20 am
Forum: Investing - Help with Personal Investments
Topic: help with roth and taxable account
Replies: 25
Views: 1247

Re: help with roth and taxable account

sleevelessjerry wrote:any idea of international allocation retired??

Do you mean the amount or which fund?
by retiredjg
Sun Jul 23, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Cleaning Up TIRA Basis (Form 8606)
Replies: 7
Views: 565

Re: Cleaning Up TIRA Basis (Form 8606)

That's why I like the convert first, rollover second plan best. It's cleaner and you can convert the exact amount of the basis, to the penny. It is probably what I'd do in that situation. When I'm making a suggestion for someone else, I've started taking the more conservative approach lately - rollo...
by retiredjg
Sun Jul 23, 2017 7:16 am
Forum: Investing - Help with Personal Investments
Topic: help with roth and taxable account
Replies: 25
Views: 1247

Re: help with roth and taxable account

sleevelessjerry wrote:thanks retiredjg,lets just ive been a good saver lmao !!my rentals help alot on taxes....

Thanks. I had not considered the rental income/deductions.
by retiredjg
Sun Jul 23, 2017 7:06 am
Forum: Investing - Help with Personal Investments
Topic: Converting existing potfolio to 3 funds - novice
Replies: 15
Views: 1215

Re: Converting existing potfolio to 3 funds - novice

That's lower than I've seen before. Not a problem though! Good luck. :happy
by retiredjg
Sun Jul 23, 2017 6:27 am
Forum: Investing - Help with Personal Investments
Topic: Advice for 457b distribution
Replies: 9
Views: 581

Re: Advice for 457b distribution

Although I agree with the math, I would argue that taking the lump sum later is not clearly a better outcome for the following reasons. I'm not saying it is clearly worse either. I think it is simply is not clear. -If you lump sum now and invest, there should be little lost to tax on dividends or ca...
by retiredjg
Sat Jul 22, 2017 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Helping parents invest IRA
Replies: 10
Views: 517

Re: Helping parents invest IRA

...AXA structured variable annuity and Structured Notes that the advisor at their bank was trying to guide them into as well as part in equities/bonds with a 1.4% wrap fee (and I would expect ERs in the 1%+ range.) :shock: Ugly. But what a BH would consider a good allocation is rarely (ever?) found...
by retiredjg
Sat Jul 22, 2017 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 5 Year Rule
Replies: 3
Views: 500

Re: Roth 5 Year Rule

For a Roth IRA to be "qualified", you need to be at least 59.5 years old and the Roth IRA needs to be at least 5 tax years old. Your 5 tax years started when you made your first contribution to Roth IRA 15 years ago. What you invested in is not relevant. It appears your Roth IRA is qualifi...
by retiredjg
Sat Jul 22, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for 457b distribution
Replies: 9
Views: 581

Re: Advice for 457b distribution

I'm also interested in possible solutions. Part of the answer...the only place a non-governmental 457b can be rolled without tax is into another non-governmental 457b. This is one of the downsides of using a non-governmental 457b. If this person is taking time off from work, rolling into another non...
by retiredjg
Sat Jul 22, 2017 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Helping parents invest IRA
Replies: 10
Views: 517

Re: Helping parents invest IRA

I think a target or a LifeStrategy is a great solution. The stock to bond ratios you mentioned are appropriate in my opinion.
by retiredjg
Sat Jul 22, 2017 3:16 pm
Forum: Personal Consumer Issues
Topic: Is Amazon Prime worth it?
Replies: 101
Views: 4739

Re: Is Amazon Prime worth it?

SleepCity wrote:No tax, no shipping fee and no loading the kids up in the car to spend an hour or more at walmart.

They are charging tax sometimes.

But the idea of loading kids in the car to spend even a minute at Walmart would be enough to convince me that Prime is worth it. :shock: :shock: :shock: :D
by retiredjg
Sat Jul 22, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: When to switch from Roth 401k to traditional 401k
Replies: 21
Views: 1240

Re: When to switch from Roth 401k to traditional 401k

You are probably in the 33% bracket. Might squeak into the 28% bracket....don't know. Either way, for most people it is (past) time to move into traditional IRA. There are some exceptions that involve the issues brought up by ruralavalon.
by retiredjg
Sat Jul 22, 2017 3:08 pm
Forum: Personal Consumer Issues
Topic: Is Amazon Prime worth it?
Replies: 101
Views: 4739

Re: Is Amazon Prime worth it?

I think it is worth it for me. I live in a rural area and shopping is limited. If I need a $5 or $10 or even $20 item, I'm not going to drive 25 miles or so to the nearest big box to get it. Amazon prices are good, not great. Delivery is great, not instant. Amazon prime works well for me and saves m...
by retiredjg
Sat Jul 22, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Questions
Replies: 22
Views: 1946

Re: Mega Backdoor Roth Questions

I think, not sure, if the 401k plan rolls money into a new traditional IRA, it can be considered a conduit or Rollover IRA because the only thing it will contain is money from a 401k. We've strayed pretty far from the original poster's question and needs, so it might be best to get further details (...
by retiredjg
Sat Jul 22, 2017 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Questions
Replies: 22
Views: 1946

Re: Mega Backdoor Roth Questions

Just saw this in the 401k SPD: After-Tax Contributions. If you are an active MegaCorp employee, you may withdraw all or part of your after-tax contribution account for any reason at any time. A portion of each withdrawal from your after-tax contribution account must be attributed to earnings; that ...
by retiredjg
Sat Jul 22, 2017 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Cleaning Up TIRA Basis (Form 8606)
Replies: 7
Views: 565

Re: Cleaning Up TIRA Basis (Form 8606)

Shouldn't the roll into the 401k take place before the conversion due to the prorata rule? Opinions vary. The wording in Publication 590 seems to say what you think. But the fact is if all of this happens in one calendar year, it will all be reported on the same form/same tax return. The IRS may no...
by retiredjg
Sat Jul 22, 2017 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Questions
Replies: 22
Views: 1946

Re: Mega Backdoor Roth Questions

The IRS is pretty clear about it.... Yes, you found the wording. This has been discussed several times but I do not recall the details of why it does not apply to you well enough to help you with it. If your 401k allows you to do the in-service rollovers of the after-tax account , forget about what...
by retiredjg
Sat Jul 22, 2017 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Stable value fund vs Vanguard Total Bond Market Index
Replies: 22
Views: 2198

Re: Stable value fund vs Vanguard Total Bond Market Index

In this case, I would prefer the stable value fund for at least half. Maybe all for the first year. Then see.
by retiredjg
Sat Jul 22, 2017 11:45 am
Forum: Investing - Help with Personal Investments
Topic: ESOP vs 401k
Replies: 4
Views: 225

Re: ESOP vs 401k

They both seem like good choices. I might go half and half because I would not want a full 10% of my portfolio tied to the same entity as my current income. I could live with 5%. It also seems like they may be high tax bracket, so the extra tax deferral could be good.
by retiredjg
Sat Jul 22, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Unwise to contribute to the same equity index fund in both taxable and IRA account? [Preparing for TLH]
Replies: 12
Views: 845

Re: Unwise to contribute to the same equity index fund in both taxable and IRA account? [Preparing for TLH]

What you really need to do is find the big thread started by livesoft on Tax Loss Harvesting. Your plan has a small problem - using the S&P 500 in taxable while also holding it in IRA/Roth IRA. When you pick a fund in taxable that you intend to tax loss harvest, you should also pick a "part...
by retiredjg
Sat Jul 22, 2017 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Questions
Replies: 22
Views: 1946

Re: Mega Backdoor Roth Questions

Thrifty Femme, my first thought was not to use the after-tax account for the first few years of employment. However, if you went ahead and used it from the start and left employment before the 5 years, the money is still yours. You can still roll the pre-tax part (the earnings) into tIRA and the aft...
by retiredjg
Sat Jul 22, 2017 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Feedback on large portfolio - moving to self-directed
Replies: 23
Views: 1075

Re: Feedback on large portfolio - moving to self-directed

Do you mind explaining how the Vanguard REIT Variable Annuity works? I looked at their site but it was not clear to me. And I don't know a lot about VAs. Here is how I understand it. You put money into a Vanguard VA and invest in one or more of several choices. REIT just happens to be one. The mone...
by retiredjg
Sat Jul 22, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: help with roth and taxable account
Replies: 25
Views: 1247

Re: help with roth and taxable account

60 stock 25 bond 15 internat and being new the international discussion leaves me perplexed :confused If you use 60% US stock, 15% international stock, and 25% bonds, your portfolio is actually 75% stock and 25% bonds with 20% (1/5th) of the stock in international. That is a reasonable asset alloca...
by retiredjg
Sat Jul 22, 2017 9:41 am
Forum: Investing - Help with Personal Investments
Topic: help with roth and taxable account
Replies: 25
Views: 1247

Re: help with roth and taxable account

sleeveless jerry, welcome to the forum. And a particular thanks for including all the information requested even though you say you are not very good on the computer. :happy And you even figured out how to do an edit! You are doing a lot of things right and definitely headed in the right direction. ...
by retiredjg
Sat Jul 22, 2017 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Which funds for these asset sources?
Replies: 7
Views: 477

Re: Which funds for these asset sources?

It seemed to be saying "equities in taxable" and that is not necessarily correct (although a lot of people come to that conclusion). It is only "equities in taxable" if the work plan(s) and IRA(s) and other tax-advantaged vehicles (HSA or 529 if desired) are maxed out each year. ...
by retiredjg
Sat Jul 22, 2017 7:27 am
Forum: Personal Finance (Not Investing)
Topic: My risk tolerance suddenly went down
Replies: 30
Views: 4344

Re: My risk tolerance suddenly went down

My pay is going up substantially... Going to have to recalibrate my life a bit.. it's +45k above my last job I want to avoid the bank account shock of having too much income so I'm thinking about maxing out their 401k Can traditional 401k be used to lower income for purposes of being able to still ...
by retiredjg
Sat Jul 22, 2017 7:19 am
Forum: Personal Consumer Issues
Topic: Why does State Farm have poor reviews?
Replies: 45
Views: 3933

Re: Why does State Farm have poor reviews?

mouses wrote:Flood is federal insurance, but the interface to the customers is through various insurance companies.

Thanks for the info.
by retiredjg
Sat Jul 22, 2017 7:16 am
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 120
Views: 5930

Re: The Quest for Perfection

Other than the complexity and the large number of small allocations, are there any glaring issues? If the idea can't easily be put into practice, I'd say that is a pretty glaring issue. The difficulty of actually implementing this portfolio idea using an average person's 401k and IRA space has been...
by retiredjg
Sat Jul 22, 2017 6:48 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Questions
Replies: 22
Views: 1946

Re: Mega Backdoor Roth Questions

How are people able to get around the IRS pro-rata rule? The pro-rata rule says one must roll over equal proportions from both the after-tax and pre-tax portions of a 401k. You can't extract *just* the after-tax bit. Assuming there were pre-tax contributions made as well, some of this *must* be rol...

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