Search found 4272 matches

by rkhusky
Wed Oct 18, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Deciding between Roth TSP and Trad TSP
Replies: 20
Views: 938

Re: Deciding between Roth TSP and Trad TSP

Silly Wabbit wrote:
Wed Oct 18, 2017 3:22 pm
Traditional.

It's not your marginal tax rate in retirement you should be comparing with. If savings are your only income, much of that income will be taxed below your marginal rate.
OP will be getting a pension, which will fill up the 0%, 10% and probably part of the 15% bracket.
by rkhusky
Wed Oct 18, 2017 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Savings - Is it enough?
Replies: 37
Views: 2990

Re: 529 Savings - Is it enough?

if by chance I am lucky enough to have some money left over in the account, I'll be using it in retirement to pay for a cooking class or two.......in some nice European town. You probably meant this in a light-hearted manner, but in the case you were serious there might be problem. To qualify as a ...
by rkhusky
Wed Oct 18, 2017 11:09 am
Forum: Investing - Help with Personal Investments
Topic: Deciding between Roth TSP and Trad TSP
Replies: 20
Views: 938

Re: Deciding between Roth TSP and Trad TSP

If you are married, $80K puts you in the 15% bracket.

RMD's are required on Roth 401K's (and Roth TSP). You'd need to move funds to Roth IRA.

Using Traditional TSP would free up funds to contribute to a Roth IRA.
by rkhusky
Wed Oct 18, 2017 10:52 am
Forum: Investing - Theory, News & General
Topic: Office wants to pay dentist as contractor (sub-s). Any issues?
Replies: 12
Views: 699

Re: Office wants to pay dentist as contractor (sub-s). Any issues?

The IRS has guidance on the difference between employees and contractors: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee Common Law Rules Facts that provide evidence of the degree of control and independence fall into three categories: ...
by rkhusky
Wed Oct 18, 2017 7:28 am
Forum: Investing - Theory, News & General
Topic: Does bond length matter for investing in bond funds?
Replies: 20
Views: 1478

Re: Does bond length matter for investing in bond funds?

SQUAWK Wrote The Vanguard Long Term Treasury fund (VUSTX) has a duration of 12 years. Long term i-grade also has duration of 12. If long term interest rates rise by 1%, the value of those bonds will fall by 12%. If long term interest rates rise by 2%, the value of those bonds will fall by 24%. If l...
by rkhusky
Wed Oct 18, 2017 7:14 am
Forum: Investing - Help with Personal Investments
Topic: Mechanics of rebalancing a four fund portfolio
Replies: 10
Views: 813

Re: Mechanics of rebalancing a four fund portfolio

It used to be that Vanguard would only allow multiple fund -> single and single fund -> multiple transactions. Perhaps they now allow multiple fund -> multiple fund transactions? I've done the former, but haven't tried the latter. If you can't do a single transaction with $1289 from TSM and $1289 fr...
by rkhusky
Tue Oct 17, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Savings - Is it enough?
Replies: 37
Views: 2990

Re: 529 Savings - Is it enough?

An additional consideration: you can obtain loans to fund education, but loans to fund retirement spending are hard to find.
by rkhusky
Tue Oct 17, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: seeking advice on asset allocation, or is Vanguard crazy
Replies: 26
Views: 2359

Re: seeking advice on asset allocation, or is Vanguard crazy

The correct answer will only be known in hindsight. You can combine estimates of what you will be contributing over the next 20 years with estimates of stock and bond returns, which are based on past history, to estimate what your AA needs to be to reach your goals. You should also compute the poten...
by rkhusky
Tue Oct 17, 2017 10:05 am
Forum: Investing - Help with Personal Investments
Topic: a question about selecting investments for 401k
Replies: 8
Views: 463

Re: a question about selecting investments for 401k

OK, now I am confused about this comment, "Share price and number of shares make no difference. 10 shares at $100/sh is exactly the same as 100 shares at $10/sh - the important parameter is that you have $1000.", and my impression is that others agree. So this is how I am thinking about it. I thoug...
by rkhusky
Tue Oct 17, 2017 8:53 am
Forum: Investing - Theory, News & General
Topic: Does bond length matter for investing in bond funds?
Replies: 20
Views: 1478

Re: Does bond length matter for investing in bond funds?

The length of the bond should be related to when you will need the money. If you don't need to withdraw money for 30 years from a fund with an average duration of 10 years, you should be okay. You are taking a risk however, if you plan to withdraw money in 10 years from a fund with an average durati...
by rkhusky
Tue Oct 17, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Joining Federal Service - A No-Brainer?
Replies: 20
Views: 2179

Re: Joining Federal Service - A No-Brainer?

Also, there is no eligibility of FEHB under this action. Could you expand on this information? I have 4 years of fed work from the past (VA hospital, really enjoyed it), and am considering applying to a fed job in order to qualify for FEHB. What are the requirements to become eligible for FEHB? Tha...
by rkhusky
Tue Oct 17, 2017 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Joining Federal Service - A No-Brainer?
Replies: 20
Views: 2179

Re: Joining Federal Service - A No-Brainer?

Look at the difference between a postponed and deferred retirement. I see nothing wrong with seeing if a government job works for her. There are many government jobs that aren't pure drudgery ( probably most jobs).
by rkhusky
Tue Oct 17, 2017 6:52 am
Forum: Investing - Theory, News & General
Topic: Roth as good as you think?
Replies: 29
Views: 3276

Re: Roth as good as you think?

Right, and for Bogleheads who have been good savers/investors, and have a good career and wait until 70 to claim social security, 25 percent or higher tax bracket is all but guaranteed once those RMDs start rolling in. Unless you retire early and spend 10-15 years doing Roth conversions and/or tax ...
by rkhusky
Mon Oct 16, 2017 9:43 am
Forum: Personal Finance (Not Investing)
Topic: 529 Savings - Is it enough?
Replies: 37
Views: 2990

Re: 529 Savings - Is it enough?

Make sure to max out retirement accounts before saving for college.
by rkhusky
Mon Oct 16, 2017 9:12 am
Forum: Personal Finance (Not Investing)
Topic: 529 Savings - Is it enough?
Replies: 37
Views: 2990

Re: 529 Savings - Is it enough?

Depends on the college (there is a wide range of tuition costs) and whether you are talking tuition only, or also on-campus living expenses (i.e. child is not living with you).
by rkhusky
Mon Oct 16, 2017 9:05 am
Forum: Investing - Help with Personal Investments
Topic: First time poster:NEED HELP! We are total newbies and late to the game*updated
Replies: 31
Views: 2236

Re: First time poster:NEED HELP! We are total newbies and late to the game*updated

Ruralavalon, Your post was very detailed and exactly what I was hoping for. Thank you Runner540, I'm glad tht the clarity helped. Our goals are for the portfolio is protection in the event things don't go as planned and or legacy to our children. In response to asset allocation ... We weren't reall...
by rkhusky
Mon Oct 16, 2017 8:05 am
Forum: Investing - Help with Personal Investments
Topic: First time poster:NEED HELP! We are total newbies and late to the game*updated
Replies: 31
Views: 2236

Re: First time poster:NEED HELP! We are total newbies and late to the game*updated

The simplest option is to use a Target Retirement (TR) fund in all your tax advantaged accounts and let Vanguard handle all the account management, like rebalancing and glide path adjustments, for you. However, they have 40% of their stocks in international, rather than the 20% you stated. For simpl...
by rkhusky
Mon Oct 16, 2017 7:53 am
Forum: Personal Consumer Issues
Topic: WPA2 protocol used by vast majority of wifi connections has been broken
Replies: 54
Views: 4509

Re: WPA2 protocol used by vast majority of wifi connections has been broken

The above articles say that https is still secure, as are VPN's.
by rkhusky
Mon Oct 16, 2017 7:36 am
Forum: Investing - Help with Personal Investments
Topic: a question about selecting investments for 401k
Replies: 8
Views: 463

Re: a question about selecting investments for 401k

Share price and number of shares make no difference. 10 shares at $100/sh is exactly the same as 100 shares at $10/sh - the important parameter is that you have $1000. Frankly, if you are new to investing, your best choice is one of the Target Retirement (TR) funds, if the expense ratio is on the or...
by rkhusky
Mon Oct 16, 2017 7:08 am
Forum: Personal Finance (Not Investing)
Topic: 2018 ACA costs arrived
Replies: 86
Views: 9342

Re: 2018 ACA costs arrived

That is surprising. And I am also confused by this statement The 2018 filing season will be the first time the IRS will not accept tax returns that omit this information. I thought this was the requirement for all these past years? I forgot to check the box 2 years ago and never heard anything from...
by rkhusky
Mon Oct 16, 2017 7:00 am
Forum: Personal Consumer Issues
Topic: contributing to friend's non-profit?
Replies: 36
Views: 1762

Re: contributing to friend's non-profit?

On the other hand, I feel as if our friendship is being monetized. A contributing factor to my feeling is the receipt of the impersonal, form email. Actually, I think the form email is an attempt to not monetize the friendship. He is treating you like all his other acquaintances. A personal plea fo...
by rkhusky
Sat Oct 14, 2017 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Municipal Bonds
Replies: 5
Views: 1232

Re: Municipal Bonds

A municipal bond fund like Vanguard's VWITX (intermediate tax exempt) would be suitable for a taxable account in the 25% bracket. So would a stock fund like VTSMX (total US) or VGTSX (total international) which are tax efficient. Vanguard's tax efficient balanced VTMFX is about 50/50 US stock/Muni b...
by rkhusky
Sat Oct 14, 2017 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with current market (voo,vti)
Replies: 48
Views: 1964

Re: Need help with current market (voo,vti)

Bond yield are also still at historic lows and when yield increases, bond prices drop. However, people have been saying that for 10 years and those that put everything in cash have missed out. Try putting 50% in stocks and 50% in bonds and then move bonds to stocks over the next year or so. Yes I r...
by rkhusky
Sat Oct 14, 2017 1:42 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3121

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

Dollar value or market cap does not correspond to diversification. Diversification refers to owning different types of companies of different sizes making different products with different risks in different parts of the world. Apple is more diversified than a company that makes a single product. Be...
by rkhusky
Fri Oct 13, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: SSA 2018 #'s
Replies: 7
Views: 1023

Re: SSA 2018 #'s

Here are some numbers released today from the SSA: Maximum Taxable Earnings = $128,700 I have no basis for my assumption. BUT assumed this number would have been higher. It's the biggest year to year increase since 1983, although 1990 was close. However, changes prior to 1983 were much larger - 197...
by rkhusky
Fri Oct 13, 2017 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with current market (voo,vti)
Replies: 48
Views: 1964

Re: Need help with current market (voo,vti)

Bond yield are also still at historic lows and when yield increases, bond prices drop. However, people have been saying that for 10 years and those that put everything in cash have missed out. Try putting 50% in stocks and 50% in bonds and then move bonds to stocks over the next year or so.
by rkhusky
Fri Oct 13, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: Understanding What Makes Vanguard So Successful
Replies: 12
Views: 1872

Re: Understanding What Makes Vanguard So Successful

Didn't seem to mention the cons of growing too fast, such as declining quality of customer support and technology. I haven't had any issues, but have seen complaints from others.
by rkhusky
Fri Oct 13, 2017 11:43 am
Forum: Personal Finance (Not Investing)
Topic: SSA 2018 #'s
Replies: 7
Views: 1023

Re: SSA 2018 #'s

Here are some numbers released today from the SSA: Maximum Taxable Earnings = $128,700 I have no basis for my assumption. BUT assumed this number would have been higher. It's the biggest year to year increase since 1983, although 1990 was close. However, changes prior to 1983 were much larger - 197...
by rkhusky
Fri Oct 13, 2017 7:57 am
Forum: Investing - Theory, News & General
Topic: 10 year anniversary of the beginning of the Great Recession
Replies: 45
Views: 4161

Re: 10 year anniversary of the beginning of the Great Recession

I regret not knowing about tax loss harvesting, because I could have taken advantage of it. I rebalanced into stocks multiple times during the downturn because I didn't think the market could go any lower. So ever time the Dow dropped by a couple thousand, I rebalanced.
by rkhusky
Thu Oct 12, 2017 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard make sense without a computer ?
Replies: 22
Views: 2256

Re: Does Vanguard make sense without a computer ?

Perhaps slower is better. Less likely to trade on current events. Just set your AA and mail in the checks.
by rkhusky
Thu Oct 12, 2017 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Allocating child's 529 funds
Replies: 2
Views: 214

Re: Allocating child's 529 funds

Keep in mind that the stock market does go down. It is generally recommended that your investment should be mostly in cash and/or short term bond if it is planned to be used in a couple of years, i.e. at age 16-18.
by rkhusky
Thu Oct 12, 2017 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: How young is too young to retire.
Replies: 49
Views: 5755

Re: How young is too young to retire.

Could you give me some more information about the social security brackets? I have heard that the ROI greatly changes based on your income but I haven't had it really explained. Your SS benefit is based on your top 35 years adjusted for inflation, with the adjustment factors provided by the governm...
by rkhusky
Thu Oct 12, 2017 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 5051

Re: Tax Bracket in Retirement

The important numbers are the tax rate that you are paying now to invest in a Roth versus the tax rate you would be paying in the future on withdrawals from a Traditional account. For most people, using a Traditional 401K and investing the tax savings in a Roth IRA works well. Caveats are if you exp...
by rkhusky
Thu Oct 12, 2017 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Balancing vs. Momentum Investing:
Replies: 4
Views: 354

Re: Balancing vs. Momentum Investing:

Our portfolio is ideally a 60/40 one, but it is now approximately 67/33. Doe anyone consider moving funds to create, for example, a 65/35 ratio rather than moving totally to a 60/40 one in an effort to capitalize on momentum? Note: Our portfolio is reasonably significant, and we have greater MRD's ...
by rkhusky
Thu Oct 12, 2017 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Lower Bracket Using Traditional, Then Contribute to Roth?
Replies: 9
Views: 805

Re: Lower Bracket Using Traditional, Then Contribute to Roth?

For most people, it is best to max a Traditional 401K and use the tax savings to fund a Roth IRA. Your idea of using Traditional to get into the 15% bracket and then contribute to a Roth IRA is fine, especially since you will be getting a pension. Once you have maxed the Roth IRA, go back to contrib...
by rkhusky
Thu Oct 12, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Can I contribute to a spousal IRA?
Replies: 5
Views: 358

Re: Can I contribute to a spousal IRA?

ThriftyPhD wrote:
Thu Oct 12, 2017 10:44 am
See Non-deductible Traditional IRA.
Note the second table on this wiki page that shows that a tax efficient taxable account can be better than a non-deductible Traditional IRA. You would need to do similar analysis to determine if that is also true for your situation using your own rates.
by rkhusky
Thu Oct 12, 2017 7:22 am
Forum: Investing - Help with Personal Investments
Topic: 2050 Target Retirement Fund
Replies: 11
Views: 1411

Re: 2050 Target Retirement Fund

Using TR 2050 is fine. The expense difference between Admiral shares and the TR funds is too small to worry about until you get well into six figures, and maybe not even then. The only reasons that I can see for going with the individual funds in a tax-advantage account is that you are trying to sho...
by rkhusky
Thu Oct 12, 2017 7:12 am
Forum: Investing - Theory, News & General
Topic: Buy when there's blood in the streets!
Replies: 39
Views: 6223

Re: Buy when there's blood in the streets!

I absolutely strongly disagree with the post that says in rebalancing you don't sell any of your fixed income position to buy equities. That is like almost guaranteeing that you will never buy stocks on sale. Only rebalancing from stocks to bonds is a perfectly reasonable strategy, depending on one...
by rkhusky
Wed Oct 11, 2017 11:21 am
Forum: Personal Consumer Issues
Topic: Quicken for Mac Woes
Replies: 7
Views: 472

Re: Quicken for Mac Woes

tetractys wrote:
Wed Oct 11, 2017 10:21 am
Apparently people are also migrating to Personal Capital.
I migrated to GnuCash. It's a bit clunky, but it works and is free.
by rkhusky
Wed Oct 11, 2017 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Annuity replacing SS shortfall?
Replies: 14
Views: 919

Re: Annuity replacing SS shortfall?

Depends on the cost of the annuity, the size of the SS shortfall, and the remaining size of the portfolio. If my remaining conservative portfolio could reasonably support my needs to age 100, I would likely pass on the annuity. You can also purchase the annuity now at a reduced cost as insurance for...
by rkhusky
Wed Oct 11, 2017 8:03 am
Forum: Investing - Help with Personal Investments
Topic: TSP contributions
Replies: 6
Views: 1534

Re: TSP contributions

Pretty old topic here, but I couldn't find an answer to Rocket's question: Can you contribute to TSP through retirement pension ????? I found a few other discussion on the forum, but none seemed to answer that question. I confess I have not tried very hard to find the literature from a *.gov websit...
by rkhusky
Sat Oct 07, 2017 9:42 pm
Forum: Investing - Theory, News & General
Topic: I'm thinking about cashing completely out of equites....
Replies: 75
Views: 8062

Re: I'm thinking about cashing completely out of equites....

I note that Vanguard's terminal retirement portfolio AA is 30/70. The government's TSP is 20/80.
by rkhusky
Sat Oct 07, 2017 11:25 am
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 191
Views: 13473

Re: Dividends vs. Capital Gains for Spending Needs?

retire57 wrote:
Sat Oct 07, 2017 10:53 am
As for the tax implications, we are in the 15% bracket and pay taxes on the dividends anyway so ... why not spend them?
If you invest in Total Stock Market, whose dividends are mostly qualified, isn't the tax rate essentially zero in the 15% bracket?
by rkhusky
Sat Oct 07, 2017 8:33 am
Forum: Investing - Theory, News & General
Topic: Exposure Distributions in Equivalent-Risk Portfolios
Replies: 6
Views: 504

Re: Exposure Distributions in Equivalent-Risk Portfolios

I think that the main takeaway is that it would be hard to prove from backtesting alone which options are better. I think you are right. Note how the difference in start dates affected the results between your two charts. Putting the start date for the first chart to 1999 makes them look very simil...
by rkhusky
Sat Oct 07, 2017 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Tradittional vs Roth?
Replies: 6
Views: 519

Re: Tradittional vs Roth?

You should estimate what your taxes will be at age 70. If you divide your expected Traditional account balance by 27.4, that will tell you how much you are required to withdraw at age 70.5. You should obtain an estimate of what your Social Security benefit will be at age 70. Put those numbers, plus ...
by rkhusky
Fri Oct 06, 2017 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Which of these funds are best/worse for taxable space?
Replies: 9
Views: 725

Re: Which of these funds are best/worse for taxable space?

VTMFX Vanguard Tax Managed Balanced Fund VIGAX Vanguard Growth Index Fund VTSAX Vanguard Total Stock Market Index Fund The above are likely better. Growth funds generally have lower dividends than value funds. WIAX Vanguard Wellesley Income fund is probably not good, being an active fund with 60% i...
by rkhusky
Fri Oct 06, 2017 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Which of these funds are best/worse for taxable space?
Replies: 9
Views: 725

Re: Which of these funds are best/worse for taxable space?

VTMFX Vanguard Tax Managed Balanced Fund VIGAX Vanguard Growth Index Fund VTSAX Vanguard Total Stock Market Index Fund The above are likely better. Growth funds generally have lower dividends than value funds. WIAX Vanguard Wellesley Income fund is probably not good, being an active fund with 60% in...
by rkhusky
Thu Oct 05, 2017 10:43 am
Forum: Investing - Theory, News & General
Topic: My Credit Union doesn't charge early withdrawal penalty on Roth CDs
Replies: 3
Views: 191

Re: My Credit Union doesn't charge early withdrawal penalty on Roth CDs

CULater wrote:
Thu Oct 05, 2017 10:34 am
I don't understand how they can do it, since it means I virtually have a liquid cash account that earns 2.5% if this is true.
Sounds like a good deal, but not quite a cash account, since you can't do partial withdrawals.
by rkhusky
Thu Oct 05, 2017 10:29 am
Forum: Investing - Theory, News & General
Topic: Muni Bond Funds With Regard to Puerto Rico
Replies: 14
Views: 925

Re: Muni Bond Funds With Regard to Puerto Rico

This document lists what percentage of dividends come from P.R. for Vanguard funds:

https://www.vanguard.com/pdf/INBST_012017.pdf

This document lists what the percentages of assets each fund holds:

http://www.vanguard.com/pdf/ASBST_012017.pdf
by rkhusky
Thu Oct 05, 2017 8:00 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 116
Views: 13868

Re: TSP to Vanguard?

This has nothing to do with federal laws. Vanguard is not required by law to reimburse if your PC or login credential are hacked or stolen and Vanguard was not at at fault. The private firms just provide a limited guarantee because their customers are not a captive audience, I guess. They could not...