Search found 30504 matches

by retiredjg
Mon Nov 20, 2017 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Spending Taxable to Zero during Retirement
Replies: 26
Views: 2490

Re: Spending Taxable to Zero during Retirement

Retired 10 years. My taxable account was small and I spent it within the first year or two (don't remember). I saw no reason to keep any in taxable. Now tapping the IRA each year and occasionally Roth IRA when I don't want to increase my taxable income any more for that year. Will likely do Roth con...
by retiredjg
Mon Nov 20, 2017 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Best Method To Correct Roth IRA Excess Contributions
Replies: 9
Views: 372

Re: Best Method To Correct Roth IRA Excess Contributions

You will get the 1099 in time for taxes. The form 5498 is usually sent out in May, after taxes are due. Not to worry, you don't need it for taxes. When tax time comes, be sure to report what you actually did - a contribution to tIRA which you did not deduct, followed by a Roth conversion. If you rep...
by retiredjg
Mon Nov 20, 2017 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Asset location in retirement (stocks)?
Replies: 7
Views: 443

Re: Asset location in retirement (stocks)?

I started out with all stocks in my Roth IRA, but found that I needed a bond fund in there in order to rebalance sometimes (give my tilts a haircut when they grow beyond my target). The bond fund is now about 1/4th of the Roth account - the tilts are growing fast enough that they need to be trimmed ...
by retiredjg
Mon Nov 20, 2017 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Correcting Rollover Error
Replies: 2
Views: 151

Re: Correcting Rollover Error

I don't have this experience, but here is my understanding of what to do. The 401k is not allowed to accept the already taxed money. In fact you may have even signed something that certifies that all the money was pre-tax. Call them, tell them you made a mistake, tell them exactly what you did (acci...
by retiredjg
Mon Nov 20, 2017 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options
Replies: 20
Views: 914

Re: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options

Thanks for the kind words! It is a somewhat radical approach for Bogleheads, but I like it. Actually a large number of people here tilt to small and/or value. In fact there was a time when dozens of "tilting" threads were going all the time. The pendulum has swung back toward the 3 fund portfolio l...
by retiredjg
Mon Nov 20, 2017 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA Phase Out
Replies: 13
Views: 1227

Re: Help with Roth IRA Phase Out

Not sure what this means. Form 8606 does keep track of your IRA basis and yes, it accumulates. But apparently you don't have any basis other than what you have contributed so far this year. Possibly the OP knew there was no basis in the IRAs he converted in 2011 & 2012, so the 8606 was just skipped...
by retiredjg
Mon Nov 20, 2017 8:24 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services/Portfolio Review
Replies: 45
Views: 3131

Re: Vanguard Personal Advisor Services/Portfolio Review

I do have the option of rolling over some of my 401k (and keeping some with my employer after I retire in case I need access with "Rule of 55") to help balance out shelf space of accounts regarding taxable vs. tax advantaged. Ultimately, after 59.5, this is what will happen anyways. Maybe I'm misun...
by retiredjg
Mon Nov 20, 2017 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA Phase Out
Replies: 13
Views: 1227

Re: Help with Roth IRA Phase Out

Hi, Thanks for the help. I went over my tax records, and it seems I had not filed 8606 for any of the tax year. Apparently I have never made non-deductible IRA contributions. But I had done Traditional to Roth conversion in 2011 & 2012 (and I had paid the required tax then). As per your pointers, I...
by retiredjg
Mon Nov 20, 2017 7:21 am
Forum: Investing - Help with Personal Investments
Topic: Need help to understand tIRA rIRA conversion
Replies: 27
Views: 1793

Re: Need help to understand tIRA rIRA conversion

loklav wrote:
Sun Nov 19, 2017 9:56 pm
Actually, I still have my previous employer 401k (@Fidelity), and there are still $500 on it... So does it mean I could rollback :) my tIRA in my previous employer 401k?
This is completely up to the old plan. Some do this and some don't.
by retiredjg
Sun Nov 19, 2017 8:25 pm
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 117
Views: 7394

Re: Is holding bonds now dangerous?

Not sure our original poster - unclelonghair - is still with us in this thread....
by retiredjg
Sun Nov 19, 2017 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services/Portfolio Review
Replies: 45
Views: 3131

Re: Vanguard Personal Advisor Services/Portfolio Review

rivercityrivercity - I am curious as to why the advisor counseled you against keeping two to three years of expenses in cash on hand. It was my impression that once retired, you wanted to do this so that you could try to avoid having to sell during a market downturn. Have I missed the boat? A lot o...
by retiredjg
Sun Nov 19, 2017 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Rollover and Backdoor Roth Question
Replies: 3
Views: 199

Re: Reverse Rollover and Backdoor Roth Question

I'm also wondering if I have to convert my investments into cash now or if they'll change them automatically once it transfers. You don't have to change your investments to cash. I'm suggesting that you change your basis to cash so that you can convert exactly the same amount as your basis. It is n...
by retiredjg
Sun Nov 19, 2017 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: Best Method To Correct Roth IRA Excess Contributions
Replies: 9
Views: 372

Re: Best Method To Correct Roth IRA Excess Contributions

I'll call Vanguard tomorrow to get things in motion with a recharacterization to an IRA then once that's complete immediately backdoor convert that to my Roth. Thanks again! Terminology is important. What you are going to do is convert it to Roth. In the meantime, download an old Form 8606 and penc...
by retiredjg
Sun Nov 19, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options
Replies: 20
Views: 914

Re: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options

Jags4186 wrote:
Sun Nov 19, 2017 3:43 pm
That isn’t TrevH’s portfolio, anyway. You need a int’l LCV fund which Vanguard does not offer in ETF form. Even in their mutual funds they only offer an active fund, VTRIX.
:oops: Good catch. Took awhile for someone to notice!
by retiredjg
Sun Nov 19, 2017 3:33 pm
Forum: Investing - Theory, News & General
Topic: Is investing with Vanguard a tragedy of the commons?
Replies: 41
Views: 4236

Re: Is investing with Vanguard a tragedy of the commons?

I agree with jhfenton that Vanguard is not a tragedy of the commons situation at all. Imagine a community park that is not maintained by any authority. It is commonly owned by the community and people use it and take care of it how they want. Nobody bothers to cut the grass regularly or empty trash ...
by retiredjg
Sun Nov 19, 2017 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Rollover and Backdoor Roth Question
Replies: 3
Views: 199

Re: Reverse Rollover and Backdoor Roth Question

You can convert any amount you want. If you drain off everything except $27.5, you can convert it with no tax. If you leave $30k in there and convert it, you will pay tax on the extra $2,500. To make things easy, you can put exactly $27.5 into money market so that amount does not get larger or small...
by retiredjg
Sun Nov 19, 2017 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Sale of Home Proceeds - Net Loss & No plans to purchase for 2 years
Replies: 6
Views: 600

Re: Sale of Home Proceeds - Net Loss & No plans to purchase for 2 years

I think you have only three good choices. 1) Put all of the $400k into something safe - no more aggressive than a short term tax-exempt bonds - and use it all on your house when you get one. You may make less money, but your next house is assured when you are ready. 2) Set aside $100k to $200k as yo...
by retiredjg
Sun Nov 19, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Best Method To Correct Roth IRA Excess Contributions
Replies: 9
Views: 372

Re: Best Method To Correct Roth IRA Excess Contributions

Have them re-characterize the Roth contribution (and it's earnings) to a non-deductible IRA contribution. Wait a day or two and convert it all to Roth IRA. You will pay tax on the earnings because they have not been taxed before. There is no penalty. This only works right if you don't have other mon...
by retiredjg
Sun Nov 19, 2017 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?
Replies: 15
Views: 733

Re: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?

Alan S. wrote:
Sun Nov 19, 2017 2:23 pm
So, do NOT file an 8606 in this situation.
Seems to me a CORRECTED 2014 Form 8606 will have to be filed since an incorrect one has already been sent to the IRS.
by retiredjg
Sun Nov 19, 2017 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: How to take income from IRA?
Replies: 8
Views: 496

Re: How to take income from IRA?

I do it the easy way. All gains/earnings are reinvested. When I need money, I sell some shares (stocks or bonds - whichever I have too much of) and have some withheld for taxes. Few clicks of the mouse and done. I doubt there is anything wrong with any of your other ideas, but there is no reason to ...
by retiredjg
Sun Nov 19, 2017 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options
Replies: 20
Views: 914

Re: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options

Hi All, Thanks to advice on this forum, I am switching to the "Trev H Four-Fund Portfolio" (https://www.bogleheads.org/forum/viewtopic.php?t=38374), which uses equal portions of: Vanguard Total Market (VTI) Vanguard Total International Ex-US (VXUS) Vanguard Small Value (VBR) Vanguard International ...
by retiredjg
Sun Nov 19, 2017 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services/Portfolio Review
Replies: 45
Views: 3131

Re: Vanguard Personal Advisor Services/Portfolio Review

I do have the option of rolling over some of my 401k (and keeping some with my employer after I retire in case I need access with "Rule of 55") to help balance out shelf space of accounts regarding taxable vs. tax advantaged. Ultimately, after 59.5, this is what will happen anyways. Maybe I'm misun...
by retiredjg
Sun Nov 19, 2017 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Bond fund in a ROTH
Replies: 28
Views: 2129

Re: Bond fund in a ROTH

This might be a stupid question, but I'll ask anyway. After reading this thread....it's opened my eyes on a few things. However, the question I have is this: If you do not hold bonds in your ROTH, how do you rebalance? If I hold bonds in my ROTH, I could sell them to buy TSM. If my Bonds are in my ...
by retiredjg
Sun Nov 19, 2017 9:10 am
Forum: Investing - Theory, News & General
Topic: Where did you first learn about investing?
Replies: 96
Views: 4019

Re: Where did you first learn about investing?

At the dinner table when I was a kid. I only learned two things - diversify and don't sell during a crash. I never paid much attention to the little I had, but I did diversify and I didn't sell during the crashes (probably because I was not watching). In my 30's I stumbled on The Only Investment Gui...
by retiredjg
Sun Nov 19, 2017 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA Phase Out
Replies: 13
Views: 1227

Re: Help with Roth IRA Phase Out

Over the years, sometimes I have filed taxes myself filling the tax forms manually, sometimes using TaxAct, and sometimes using TurboTax. And I've not been diligent about filing IRA basis, or carrying it over from one system to another. Now I realize this is an issue if I'm going to hold a mix of d...
by retiredjg
Sun Nov 19, 2017 7:53 am
Forum: Investing - Help with Personal Investments
Topic: How to weight Risk:Return for AA in Thrift G fund vs. F Fund?
Replies: 5
Views: 378

Re: How to weight Risk:Return for AA in Thrift G fund vs. F Fund?

The F Fund is low risk, but the G fund has essentially no risk. Some people believe they can bump up their stock allocation up 5% (or maybe more?) by using the G Fund. Not knowing how to weigh the risk:return for each, I just have a big chunk of each (and did not add extra stocks because of the lowe...
by retiredjg
Sat Nov 18, 2017 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: pretax and after tax wellesley investment
Replies: 2
Views: 354

Re: pretax and after tax wellesley investment

It might be helpful to know what kind of accounts this money is in. For example, maybe all the "pre-tax" accounts are IRAs, but the "post-tax accounts" could be a taxable account or a Roth IRA or a tIRA with non-deductible contributions. So show us what you have and what you are considering - you mi...
by retiredjg
Sat Nov 18, 2017 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Vs Traditional IRA for Wife’s Accounts
Replies: 6
Views: 328

Re: Backdoor Roth Vs Traditional IRA for Wife’s Accounts

If the Solo 401k is at Fidelity, you could roll the old 401ks into it and only have one thing to manage. Or....you can post all the information needed and people here could help you figure out what to use in all those old accounts. See the link at the bottom of this message for how to do that. It's ...
by retiredjg
Sat Nov 18, 2017 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?
Replies: 15
Views: 733

Re: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?

Sorry to lead you off into the wrong direction. Since you actually had the contribution returned, I think form 8606 has just gotten in the way, but I don't know enough to help you with this.
by retiredjg
Sat Nov 18, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Vs Traditional IRA for Wife’s Accounts
Replies: 6
Views: 328

Re: Backdoor Roth Vs Traditional IRA for Wife’s Accounts

I would find out for sure that none of the old plans will accept a rollover from IRA or from 401k. If one does that both simplifies the portfolio and solves the back door problem. If none do, you just have to decide how important the back door is in your overall scheme of things. If $16k is (or will...
by retiredjg
Sat Nov 18, 2017 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services/Portfolio Review
Replies: 45
Views: 3131

Re: Vanguard Personal Advisor Services/Portfolio Review

We have the ability to place stocks and bonds in either IRA/Roth or the taxable. (The money has not been invested yet in taxable and the existing Rollover/Roth accounts can be rearranged/re-allocated however we would like without any tax consequences.) When you mention lack of flexibility, what are...
by retiredjg
Sat Nov 18, 2017 2:19 pm
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 117
Views: 7394

Re: Is holding bonds now dangerous?

UncleLongHair wrote:
Sat Nov 18, 2017 12:05 pm
Generally speaking any investment strategy that is likely to lose you money doesn't sound like a good idea.
What is your suggested alternative?
by retiredjg
Sat Nov 18, 2017 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?
Replies: 15
Views: 733

Re: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?

I'm not sure how to help you but I think the problem may be how you took the money out. I think you could have gotten your contribution returned by contacting the custodian. They could undo your contribution as if it never happened. But it appears you simply did a withdrawal which got coded as a "di...
by retiredjg
Sat Nov 18, 2017 10:41 am
Forum: Personal Finance (Not Investing)
Topic: mfj tira deduction [Married Filing Jointly, Traditional IRA deduction]
Replies: 4
Views: 186

Re: mfj tira deduction

You are using the wrong chart. See this one since your wife will NOT be covered by a plan at work, but you are. https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-not-covered-by-a-ret...
by retiredjg
Sat Nov 18, 2017 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services/Portfolio Review
Replies: 45
Views: 3131

Re: Vanguard Personal Advisor Services/Portfolio Review

Looks like a great portfolio to me. I think you may have a small lack of flexibility since your stocks are essentially all in taxable and the bonds are all in IRA/Roth IRA. If this becomes an issue, it will not be difficult to figure out a simple solution. It seems to me you have way more money than...
by retiredjg
Sat Nov 18, 2017 9:26 am
Forum: Investing - Help with Personal Investments
Topic: What to do with 360k for an old man
Replies: 30
Views: 2854

Re: What to do with 360k for an old man

The only other option I would consider would be a five year CD ladder where they are staggered to mature every year. For example he could buy $60,000 CDs that mature in 1,2,3,4, and 5 years. The rest he could just leave in the saving account. This seems like a good idea to me. Might make everybody ...
by retiredjg
Sat Nov 18, 2017 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Help! Tax question as I bogelize my holdings
Replies: 16
Views: 1316

Re: Help! Tax question as I bogelize my holdings

If you use Total Stock in the Roth IRAs, if you sell Total Stock in taxable at a loss, you may create a "wash sale" and not be able to take that loss (or some of it) off your taxes. Do you mean if I sell Total Stock in taxable to fund Roth? I mean selling for any reason at a loss. If you sell somet...
by retiredjg
Sat Nov 18, 2017 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth - should we do it?
Replies: 9
Views: 927

Re: Backdoor Roth - should we do it?

I think the question revolves around when you have to open the Solo 401k at Fidelity for 2018, right? Or would it be possible to just not use the Vanguard 401k in 2018 until you know if you get the job and open a Solo 401k at Fidelity sometime next year if things don't work out? If you would be happ...
by retiredjg
Sat Nov 18, 2017 8:52 am
Forum: Investing - Help with Personal Investments
Topic: What to do with 360k for an old man
Replies: 30
Views: 2854

Re: What to do with 360k for an old man

Financially, I agree with you. My understanding is that a portfolio with a little stock (20% or so) is actually safer than a portfolio with 0% stock. But that is not all there is too it. If he does not want to be invested in stock, he should not do it. And if he is letting others manage his affairs,...
by retiredjg
Sat Nov 18, 2017 8:42 am
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 117
Views: 7394

Re: Is holding bonds now dangerous?

Portfolios are supposed to be diversified because they're supposed to be diversified, but why diversify into investments that are certain to lose money? Because it is good to wear your seat belt all the time instead of just the days you think you are going to have a wreck? Because what other choice...
by retiredjg
Sat Nov 18, 2017 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Help! Tax question as I bogelize my holdings
Replies: 16
Views: 1316

Re: Help! Tax question as I bogelize my holdings

If you use Total Stock in the Roth IRAs, if you sell Total Stock in taxable at a loss, you may create a "wash sale" and not be able to take that loss (or some of it) off your taxes. That probably seems unimportant now, but in a market crash, you might actually want to harvest your tax losses in taxa...
by retiredjg
Sat Nov 18, 2017 8:12 am
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 117
Views: 7394

Re: Is holding bonds now dangerous?

In my opinion, holding bonds is not dangerous. The fact that we are in a period of low interest rates does not change the fact that a portfolio needs to have some fixed income assets. In fact, a portfolio without fixed income assets cannot properly be considered "diversified". If you don't like bond...
by retiredjg
Fri Nov 17, 2017 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: Max out 403b or open solo 401k?
Replies: 4
Views: 222

Re: Max out 403b or open solo 401k?

The Solo is obviously a better choice than your 403b, but I think part of the answer has to do with why you are not maxing out your 403b.
by retiredjg
Fri Nov 17, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Are my husband's traditional IRA contributions deductible for 2017?
Replies: 9
Views: 592

Re: Are my husband's traditional IRA contributions deductible for 2017?

I don't know what the employer can or cannot do. You can ask. If there is no employer contribution and if your husband does not contribute, my understanding is he would not be "participating" for 2017 (unless there is a pension which seems unlikely). I would not depend on the employer to get the box...
by retiredjg
Fri Nov 17, 2017 8:29 am
Forum: Personal Finance (Not Investing)
Topic: 401K & self employment retirement vehicles?
Replies: 4
Views: 238

Re: 401K & self employment retirement vehicles?

Yes. Her employee contributions for both plans cannot exceed the $18k limit on elective deferrals, but she could use the employer contribution side of a Solo 401k or SEP IRA or maybe even a SIMPLE IRA. This assumes she has the appropriate structure to open such accounts.
by retiredjg
Fri Nov 17, 2017 7:48 am
Forum: Investing - Help with Personal Investments
Topic: [Traditional to Roth IRA conversion - backdoor?]
Replies: 2
Views: 146

Re: Need help to understand tIRA rIRA conversion

I have another backdoor Roth question for which I cant seem to find the answer. My wife and I both have taxable IRAs which are currently in a loss position - meaning the amount of after tax cash we contributed to the tIRA is greater than its current value (what can happen by investing in individual...
by retiredjg
Fri Nov 17, 2017 6:06 am
Forum: Investing - Help with Personal Investments
Topic: Bond fund in a ROTH
Replies: 28
Views: 2129

Re: Bond fund in a ROTH

Last question. What VG bond fund would you recommend for our ROTH IRA's - I was thinking about either an intermediate corporate or intermediate Treasury. Looking forward to your recommendations. I think any quality intermediate term bond fund would be fine. If you already have a lot of total bond, ...
by retiredjg
Thu Nov 16, 2017 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Bond fund in a ROTH
Replies: 28
Views: 2129

Re: Bond fund in a ROTH

Wait wait wait, so the general guideline is to put taxable bonds in a tax-advantaged account if it's a tIRA or 401K but not a Roth? What about the following situation: 1) 401K only decent fund option is an index 500 fund ER .21%, all bond options are 70+bp 2) Roth space available at Vanguard 3) Tax...
by retiredjg
Thu Nov 16, 2017 10:26 am
Forum: Investing - Help with Personal Investments
Topic: What to do with IRA
Replies: 2
Views: 198

Re: What to do with IRA

My question is should I roll that IRA into my new 401k, or would I be better off doing the allocation myself? Your choice. The 401k seems to have low enough expenses that rolling over there would be fine. But you could also just use a target fund in your Fidelity IRA. If you decide to keep the mone...
by retiredjg
Thu Nov 16, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: Retirement withdrawals - lump sums or piecemeal?
Replies: 4
Views: 513

Re: Retirement withdrawals - lump sums or piecemeal?

When I started out, I took a year's worth of expenses out and put it in savings. After a few years, I just quit. Now, when I need money, I just sell something and transfer it to my checking account. For taxes, I just withhold some on each withdrawal.