Search found 27784 matches

by retiredjg
Sat Feb 25, 2017 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: 401k AA - no Total Market Fund option
Replies: 14
Views: 587

Re: 401k AA - no Total Market Fund option

Huh? Are we really discussing the difference between "about 80:20" and 82.6:17.4? Does anyone really believe there is a meaningful difference between those two? Yes, why not? In a group that tries to shave 10 basis points off of ER, some may want that ratio as good as possible. :shock: Wh...
by retiredjg
Sat Feb 25, 2017 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Betterment, $500k in cash, no taxable events to transfer?
Replies: 30
Views: 2294

Re: Betterment, $500k in cash, no taxable events to transfer?

tj wrote:Nope, the TLH is included, but you can expect a 30+ page 1099 if you use them for that....

:shock:

I was wondering how that was going to work out. Not something I'd want to deal with.
by retiredjg
Sat Feb 25, 2017 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: AGI in Roth phase out
Replies: 7
Views: 508

Re: AGI in Roth phase out

If you are willing to use the back door, just go ahead and do it now whether you need it or not. This eliminates the problem of having to wait till you know your exact numbers. It also keeps both steps of the back door on the same Form 8606. Many people like this because it is less confusing because...
by retiredjg
Sat Feb 25, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA [May not have done this correctly]
Replies: 2
Views: 86

Re: Backdoor Roth IRA

I am pretty sure I have fallen into the category of people who mess up the backdoor roth IRA, I'm just not sure how badly. Yes you have, but it is fixable. If you have filed your 2016 taxes, it will have to be amended. If not, you can head the problem off at the pass for the most part. I created a ...
by retiredjg
Sat Feb 25, 2017 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: 401k AA - no Total Market Fund option
Replies: 14
Views: 587

Re: 401k AA - no Total Market Fund option

Huh? Are we really discussing the difference between "about 80:20" and 82.6:17.4? Does anyone really believe there is a meaningful difference between those two?
by retiredjg
Sat Feb 25, 2017 10:54 am
Forum: Investing - Help with Personal Investments
Topic: Please evaluate our situation
Replies: 27
Views: 1304

Re: Please evaluate our situation

I didn't say it was too much. I just said it was "a lot". :happy

I don't see a problem with spending though. Past spending...maybe.
by retiredjg
Sat Feb 25, 2017 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Please evaluate our situation
Replies: 27
Views: 1304

Re: Please evaluate our situation

Once those are taken care of, I can definitely see putting $1500/mo each into our 403b accounts. Trust me, we are pretty frugal! Filling two 403bs and 2 Roth IRAs would be a lot of savings for a couple with a pension that is likely to cover much of your retirement. On the other hand, you may not ha...
by retiredjg
Sat Feb 25, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Please evaluate our situation
Replies: 27
Views: 1304

Re: Please evaluate our situation

The 0.30 fee is on top of whatever the expense ratios are. I guess I was ok with it because the total would still be lower than most funds out there. However, I'm ok with us stopping our contributions and purchasing vanguard funds directly in my 403b. I suppose I will save a considerable amount of ...
by retiredjg
Sat Feb 25, 2017 9:16 am
Forum: Investing - Help with Personal Investments
Topic: How to allocate mother's taxable assets for retirement?
Replies: 4
Views: 401

Re: How to allocate mother's taxable assets for retirement?

If she is in a lower tax bracket she should use taxable bonds (ordinary bonds) in her taxable account. She would only need the tax-exempt bonds if she is in the 28% bracket although sometimes they are OK in the 25% bracket too. If you like target funds there is no reason to use those high cost ones....
by retiredjg
Sat Feb 25, 2017 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Please evaluate our situation
Replies: 27
Views: 1304

Re: Please evaluate our situation

Is the .30% the total cost, or is that the management fee on top of the underlying fund expenses? If it is the total cost, it is not terrible, but not great. If it is an additional cost, it's too much. The LifeStrategy fund should be cheaper. Is there a reason you like the MAP better? What does &quo...
by retiredjg
Sat Feb 25, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Bogleheads' Philosophy a Generalization?
Replies: 41
Views: 1572

Re: Bogleheads' Philosophy a Generalization?

That's great information, thanks. The only thing I'd push back on is while "Past performance is not an indicator of future returns" you can find finds that have been beating or matching indexes for lengthy historical periods. I'm thinking there might be very few of these. Do you know of m...
by retiredjg
Sat Feb 25, 2017 8:48 am
Forum: Investing - Help with Personal Investments
Topic: Please evaluate our situation
Replies: 27
Views: 1304

Re: Please evaluate our situation

I'm not sure what I'm reading there. Are the top 6 all in one managed account? What is the ER (expense ratio) of that one?

What is the ER of the LifeStrategy Fund?

Is one His and one Hers? Or do each of you have both?
by retiredjg
Sat Feb 25, 2017 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Please evaluate our situation
Replies: 27
Views: 1304

Re: Please evaluate our situation

1. We are currently doing the $375/mo in a regular 403b to cut our current taxes. When we up it to $1000/mo, should we do $500 in a regular 403b and $500 in a Roth 403b, or should we put all $1000 into a regular 403b? Ordinarily a pension argues for using more Rothness, but in your case, I'd vote f...
by retiredjg
Sat Feb 25, 2017 6:42 am
Forum: Investing - Help with Personal Investments
Topic: "Borrow" $5500 from Emergency Fund to Qualify for Vanguard Admiral?
Replies: 16
Views: 1869

Re: "Borrow" $5500 from Emergency Fund to Qualify for Vanguard Admiral?

Dont mess with your emergency funds. There is no reason to start at Betterment if you want to be at Vanguard. Apparently, it will only take you 2 months to gather the minimum. Best funds in taxable are Total Stock and Total International so there is no need for analysis or paralysis. I don't see how...
by retiredjg
Fri Feb 24, 2017 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: 401k AA - no Total Market Fund option
Replies: 14
Views: 587

Re: 401k AA - no Total Market Fund option

Yes, combining the 500 Index and the Extended Market Index (about 80:20) gives you something very much like the total stock market. The 500 index stocks are the large cap stocks and the Extended Market is everything else.

Looks like a good plan and you'll probably lower your costs significantly.
by retiredjg
Fri Feb 24, 2017 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Betterment, $500k in cash, no taxable events to transfer?
Replies: 30
Views: 2294

Re: Betterment, $500k in cash, no taxable events to transfer?

So is this a good time to open a Betterment account? It's a good time to do something. Whether it should be Betterment or not is up to you. I think you should put the decision on hold until you learn enough to firmly decide you won't want to manage your own money. You can post your portfolio here a...
by retiredjg
Fri Feb 24, 2017 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Betterment, $500k in cash, no taxable events to transfer?
Replies: 30
Views: 2294

Re: Betterment, $500k in cash, no taxable events to transfer?

I didn't read every post, but I think something is missing here.

Doesn't it cost .25% just to have them hold your money and an additional percentage to have them do TLH'ing?
by retiredjg
Fri Feb 24, 2017 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Young Investor needs help with Vanguard Roth IRA options
Replies: 30
Views: 2092

Re: Young Investor needs help with Vanguard Roth IRA options

You should ALWAYS have a portfolio that you are willing to go through a major market crash with. This means your portfolio will not be "good enough" when the times are good because you are not 100% stocks. And it will not be "good enough" in the crashes because it is not 100% bon...
by retiredjg
Fri Feb 24, 2017 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Company merger, rolling 401K to IRA
Replies: 19
Views: 421

Re: Company merger, rolling 401K to IRA

This is the info that they sent out. I've changed the company names to A and B since I'm not sure if I should be mentioning them by name. she's been there about 10 years and everything is vested. It looks like they are transitioning our 401k to Vanguard… 401(k) Plan Changes and Choices If you will ...
by retiredjg
Fri Feb 24, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Company merger, rolling 401K to IRA
Replies: 19
Views: 421

Re: Company merger, rolling 401K to IRA

When you find out the particulars, can you post it here? "Not getting the match" doesn't sound quite right to me.
by retiredjg
Thu Feb 23, 2017 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute additional $10k to 403b to convert $10k to Roth?
Replies: 5
Views: 353

Re: Contribute additional $10k to 403b to convert $10k to Roth?

The plan makes sense to me as long as you stay in the 15% bracket.
by retiredjg
Thu Feb 23, 2017 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Maxed out retirement accounts, now what?
Replies: 14
Views: 1875

Re: Maxed out retirement accounts, now what?

What defines a tax-efficient fund? Quick definition is "doesn't cost you much in taxes each year". A tax efficient stock fund is a fund that does not throw off a lot in dividends or in capital gains distributions each year. In other words, as long as you leave the money there, you will ha...
by retiredjg
Thu Feb 23, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Do companies match after-tax 401k contributions?
Replies: 32
Views: 1665

Re: Do companies match after-tax 401k contributions?

@retiredjg - interesting. Can you elaborate or point me to any source on how they are treated separately at withdrawal. It can be quite complicated, but if you have the information at hand, the IRS has a worksheet for you to use. Go to the Fairmark.com site and search for Roth withdrawal s or Roth ...
by retiredjg
Thu Feb 23, 2017 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard versus Dimensional
Replies: 22
Views: 2018

Re: Vanguard versus Dimensional

The growth of 10k for the two is: XNAS:DFSVX:75,362.25 XNAS:VISVX:62,532.8 If I did my CAGR calculations right, that's 11.87% for DFA and 10.72% for Vanguard. As I understand it, the higher ER of the DFA funds is accounted for in this growth chart. It does not account for the .7% AUM charged by the...
by retiredjg
Thu Feb 23, 2017 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Another Backdoor Roth - Tax filing question - TT
Replies: 11
Views: 466

Re: Another Backdoor Roth - Tax filing question - TT

You definitely have to fix the 2015 Form 8606 or your 2016 form will not be right. The IRS accepts that particular form without an accompanying tax return. However, the Roth conversion might also show up somewhere on the Form 1040 (even if not taxed) so that might be the more prudent way to approach...
by retiredjg
Thu Feb 23, 2017 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Another Backdoor Roth - Tax filing question - TT
Replies: 11
Views: 466

Re: Another Backdoor Roth - Tax filing question - TT

It sounds like you didn't do the back side of the 2015 Form 8606. You report the conversion step in Part II. Once you report the conversion step, line 14 goes to $0. I do not think (not sure) you need to do an amended return because this will not change your tax, it just changes line 14. Download th...
by retiredjg
Thu Feb 23, 2017 10:59 am
Forum: Investing - Help with Personal Investments
Topic: My Choice to Fund Roths over 403(b)
Replies: 14
Views: 470

Re: My Choice to Fund Roths over 403(b)

That was the point of my original question...if ALL we can contribute is the $20,000, is it wise for $13,000 of that to go toward the Roths AS OPPOSED TO the 403(b). I think it is fine since some money is going to tax-deferral and you indicate there will be time later in your life when you expect t...
by retiredjg
Thu Feb 23, 2017 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Another Backdoor Roth - Tax filing question - TT
Replies: 11
Views: 466

Re: Another Backdoor Roth - Tax filing question - TT

Hi, For 2015 tax year we did backdoor roth for the first time. Line 14 on 8606 (your total basis in traditional IRAs for 2015 and earlier years) in the returns shows $5500. If you did the entire back door process in 2015, this is incorrect. Line 14 should be $0. If you did the contribution in 2015 ...
by retiredjg
Thu Feb 23, 2017 10:48 am
Forum: Investing - Help with Personal Investments
Topic: My Choice to Fund Roths over 403(b)
Replies: 14
Views: 470

Re: My Choice to Fund Roths over 403(b)

delrinson wrote:Our low taxable income is due to a variety of tax advantages we enjoy.

Yes, they DO look pretty enjoyable. :happy
by retiredjg
Thu Feb 23, 2017 9:20 am
Forum: Investing - Theory, News & General
Topic: slowly rebalancing or almost all at once for Asset allocation
Replies: 5
Views: 502

Re: slowly rebalancing or almost all at once for Asset allocation

Is there a "correct way" of rebalancing to a desired asset allocation? No. There are only opinions about what the correct way is. :D I think you did it almost correctly. To me, correctly would be to change it at once. To me, this is one of those "if you find your horse is dead, dismo...
by retiredjg
Thu Feb 23, 2017 9:06 am
Forum: Investing - Theory, News & General
Topic: Warren Buffets Bet almost over
Replies: 7
Views: 2445

Re: Warren Buffets Bet almost over

Interesting that the WSJ would publish that just now. The bet is not over for another 10+ months. However, I'd like to read the article too if if it can be linked.
by retiredjg
Thu Feb 23, 2017 9:02 am
Forum: Investing - Help with Personal Investments
Topic: My Choice to Fund Roths over 403(b)
Replies: 14
Views: 470

Re: My Choice to Fund Roths over 403(b)

When/if you decide to add more to tax-deferred accounts, there is no reason to use His 403b if Her 401k has better choices.
by retiredjg
Thu Feb 23, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: My Choice to Fund Roths over 403(b)
Replies: 14
Views: 470

Re: My Choice to Fund Roths over 403(b)

Getting money into Roth in the 15% bracket is a good thing in my opinion. I think your choice is fine as long as there is something going into tax-deferred accounts as well. You might be eligible for the savers' credit on your taxes. Have you checked? It's hard to imagine being able to save $20k a y...
by retiredjg
Thu Feb 23, 2017 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Good time to ditch my target date fund in 457b?
Replies: 14
Views: 864

Re: Good time to ditch my target date fund in 457b?

Both the 500 Index and the Small cap index contain some mid cap stocks, so your plan is not really missing anything significant. Some people would choose to approximate the total market with 3 funds and some with 2. Do what makes sense to you. Here is some information about how to approximate the to...
by retiredjg
Thu Feb 23, 2017 7:26 am
Forum: Investing - Help with Personal Investments
Topic: Non-Roth After-Tax 401(k) to Roth IRA / Reverse Rollover / Taxes
Replies: 6
Views: 399

Re: Non-Roth After-Tax 401(k) to Roth IRA / Reverse Rollover / Taxes

jable wrote:I suspect that it would not, but I think I may err on the side of caution and just open up another rollover IRA to accept the after-tax earnings.

Remember, if you intend to use the back door, this IRA is going to get in the way unless you roll it back to 401k before the end of the year.
by retiredjg
Thu Feb 23, 2017 7:21 am
Forum: Investing - Help with Personal Investments
Topic: Do companies match after-tax 401k contributions?
Replies: 32
Views: 1665

Re: Do companies match after-tax 401k contributions?

That said, the only thing I really have in the cobwebs of my mind about tracking IRA funds is if you ever want to roll the funds INTO another 401k, it is easiest if rollover and contributed amounts are not co-mingled, or else you have to do more math. This can apply to tIRA, but I don't believe it ...
by retiredjg
Thu Feb 23, 2017 7:19 am
Forum: Investing - Help with Personal Investments
Topic: Do companies match after-tax 401k contributions?
Replies: 32
Views: 1665

Re: Do companies match after-tax 401k contributions?

I don't think it is important to keep the funds separate. What is important is keeping meticulous records of how all the money got into the Roth IRA. You will need these records if you ever take money from the Roth IRA before age 59.5 so keep the records until your mid 60's at least. This is because...
by retiredjg
Wed Feb 22, 2017 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard versus Dimensional
Replies: 22
Views: 2018

Re: Vanguard versus Dimensional

I don't think many here will say the Dimensional funds are bad funds, especially if you want to tilt toward value. The funds are fine. In fact, probably better than fine. The trouble is you cannot buy them without an advisor and that adds an extra layer of cost every year to your portfolio. In your ...
by retiredjg
Wed Feb 22, 2017 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Do companies match after-tax 401k contributions?
Replies: 32
Views: 1665

Re: Do companies match after-tax 401k contributions?

As mentioned above, check your SPD, but I can almost promise that they will stop matching after you reach your $18k limit. As pointed out, this is not always correct. However I think what you are meaning to say is that you won't get "extra" match by contributing more and I think that is p...
by retiredjg
Wed Feb 22, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Moving away from Edward Jones to Vanguard
Replies: 22
Views: 1541

Re: Moving away from Edward Jones to Vanguard

I do have to admit I'm confused about your fees. You have a very odd EJ portfolio! I looked up about half your funds and none of them were load funds, which are usually EJ's bread and butter, and only a couple of them had smallish 2b-1 fees of 0.1%. Most were pretty low expense compared to typical ...
by retiredjg
Wed Feb 22, 2017 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Is 60/40 too conservative for 31 year old?
Replies: 56
Views: 4552

Re: Is 60/40 too conservative for 31 year old?

NewbieBogle007, the fact that 60/40 suits someone else should have no bearing on what suits you. All that is being said is that 60/40 is a reasonable approach for any age. People using 60/40 may have to save a little more. That does not seem to be an issue for these people.
by retiredjg
Wed Feb 22, 2017 10:26 am
Forum: Investing - Help with Personal Investments
Topic: Maxed out retirement accounts, now what?
Replies: 14
Views: 1875

Re: Maxed out retirement accounts, now what?

What comes next is saving in taxable for retirement, paying down debt, or saving in taxable for other things. Your choice. (This assumes you do not have an HSA to use). The best funds in taxable for long term investing would be a total stock market index or a total international stock index. These a...
by retiredjg
Wed Feb 22, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: How do you rank different diversifiers?
Replies: 5
Views: 427

Re: How do you rank different diversifiers?

If you were to rank different ways to diversify, re risk/returns, a portfolio, how would you do it? I keep it pretty simple. Primary diversification is stocks and bonds . 1) In the stocks, use both US and International In the US and International, try to have all of the Morningstar 9 style boxes* c...
by retiredjg
Wed Feb 22, 2017 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Non-Roth After-Tax 401(k) to Roth IRA / Reverse Rollover / Taxes
Replies: 6
Views: 399

Re: Non-Roth After-Tax 401(k) to Roth IRA / Reverse Rollover / Taxes

First question is: Do I have a sound conclusion of the potential tax implications of this transaction? If not, please feel free to elaborate. What questions should I be asking that I am not asking? You appear to have it right. Second question: From a tax standpoint, might this one-time "revers...
by retiredjg
Wed Feb 22, 2017 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Moving away from Edward Jones to Vanguard
Replies: 22
Views: 1541

Re: Moving away from Edward Jones to Vanguard

This Guided Solutions "improvement" seems to have many people waking up to the fact that they are paying high fees and need to move. We've heard from several people like you recently. I don't think we've yet seen the list of "eligible investments". It would be interesting to see....
by retiredjg
Wed Feb 22, 2017 7:17 am
Forum: Investing - Help with Personal Investments
Topic: Help Directing 401K Bond Allocations
Replies: 7
Views: 383

Re: Help Directing 401K Bond Allocations

In a case like this, I think I might split up the bond allocation into several accounts. Hold some in the stable value fund in the 401k and hold a good fund like total bond market in the roth IRA. I might even hold a 5% allocation, no more, of the junk bond. I think you can make a good argument that...
by retiredjg
Tue Feb 21, 2017 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help Directing 401K Bond Allocations
Replies: 7
Views: 383

Re: Help Directing 401K Bond Allocations

What about other accounts? Does your spouse have an account at work? Any IRAs? Taxable account?
by retiredjg
Tue Feb 21, 2017 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Do companies match after-tax 401k contributions?
Replies: 32
Views: 1665

Re: Do companies match after-tax 401k contributions?

When you say "switch over", I hope you don't mean making after-tax contributions instead of tax-deferred contributions.
by retiredjg
Tue Feb 21, 2017 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Do companies match after-tax 401k contributions?
Replies: 32
Views: 1665

Re: Do companies match after-tax 401k contributions?

The law apparently allows your employer to match your after-tax contributions. Some plans do according to posts from several posters. You will have to check your plan to find out what your plan does.
by retiredjg
Tue Feb 21, 2017 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: Help Directing 401K Bond Allocations
Replies: 7
Views: 383

Re: Help Directing 401K Bond Allocations

Apparently, the ticker for this fund is WACPX, assuming it is a regular mutual fund. Check to be sure that is the ticker reported by your 401k plan. If not, you will need to find out exactly what you have. The ER of this fund is reasonable for a bond fund in a 401k. While it is not low, it is not hi...

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