Search found 2992 matches

by rkhusky
Fri Feb 12, 2016 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Shouldn't you have separate AA for Retirement/Non-Retirement?
Replies: 10
Views: 444

Re: Shouldn't you have separate AA for Retirement/Non-Retirement?

Take a look at 529 account portfolios compared to retirement portfolios for the major companies like Vanguard. You will see that their AA's and glide paths are quite different.
by rkhusky
Wed Feb 10, 2016 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: Confused doctor's portfolio
Replies: 18
Views: 3067

Re: Confused doctor's portfolio

Minor quibble, but all your bonds are in muni's, whereas I like a bit more diversity by adding something like Total Bond in tax advantaged. What does a total bond index add? Corporate bonds, US Treasury bonds, US Government-backed mortgage bonds, which are quite different than the holdings of the I...
by rkhusky
Wed Feb 10, 2016 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help with TSP + 401k allocations/Overlap
Replies: 10
Views: 277

Re: Help with TSP + 401k allocations/Overlap

Yes, 5% on both - 10% total I change my answer then. You definitely want to get the match on both. You could stick with your 2040 in TSP and add S&P 500 in 401K as mentioned above. Eventually you may want to move to 2030 if your 401K balance becomes more substantial. You want less international...
by rkhusky
Wed Feb 10, 2016 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Help with TSP + 401k allocations/Overlap
Replies: 10
Views: 277

Re: Help with TSP + 401k allocations/Overlap

Are you limited to a combined $18K for the two accounts? If so, and you don't have the emerging/small int'l funds to fill that hole in the TSP, you might as well put everything in the TSP. Is everything else the same between the two - matching rate and tax implications? edit: do you get a match on T...
by rkhusky
Wed Feb 10, 2016 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Help with TSP + 401k allocations/Overlap
Replies: 10
Views: 277

Re: Help with TSP + 401k allocations/Overlap

What is the relative size of the two accounts?

Is there an emerging markets or small cap international fund in your 401K? (these are missing from TSP)

C & S cover the entire US Market (except perhaps for micro caps).
by rkhusky
Tue Feb 09, 2016 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Advice regarding Vanguard Target Funds
Replies: 9
Views: 606

Re: Advice regarding Vanguard Target Funds

In your case, you don't even qualify for Admiral share class for all of your funds, so your expenses would be higher in a 3-fund portfolio. Not only that, but the TDF is doing rebalancing for you very frequently. Even when you can buy the Admiral share classes, is all that worth $7.20/year/$100k? +...
by rkhusky
Tue Feb 09, 2016 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Trad IRA---> Roth
Replies: 37
Views: 1698

Re: Trad IRA---> Roth

ok thanks. I thought I was going to be liable for an early withdrawal penalty as the rep kept repeating that phrase, 'taxable event'. See above wiki page if there are other Traditional IRA funds involved. Also note that this wiki page says that you can re-characterize a Traditional contribution to ...
by rkhusky
Tue Feb 09, 2016 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Trad IRA---> Roth
Replies: 37
Views: 1698

Re: Trad IRA---> Roth

It is taxable. You will pay extra taxes on any gain between when you deposited in the Traditional IRA and when you removed it. If there is no gain, there is no tax. Plus you obviously cannot claim the Traditional contribution on your 2015 taxes. This the procedure for doing the two-step "Backdo...
by rkhusky
Tue Feb 09, 2016 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Trad IRA---> Roth
Replies: 37
Views: 1698

Re: Trad IRA---> Roth

Just move it into a Roth account and don't deduct the Traditional contribution on the 2015 taxes. Look into filing form 8606.
by rkhusky
Tue Feb 09, 2016 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Help Splitting a Target Date Fund
Replies: 15
Views: 1018

Re: Help Splitting a Target Date Fund

I should note that there are those that choose not to rebalance into stocks. They only rebalance out of stocks. In that case, you would want to hold the individual funds rather than a balanced (or target date) fund.
by rkhusky
Tue Feb 09, 2016 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Help Splitting a Target Date Fund
Replies: 15
Views: 1018

Re: Help Splitting a Target Date Fund

Look at a specific example: Suppose you have $100K in a 60/40 balanced fund ($60K in stock, $40K in bonds). Suppose the stocks drop to $50K, a 16.7% drop. The balanced fund will sell bonds and buy stocks to get back to 60/40, i.e. will end with $54K in stocks and $36K in bonds. You now sell $10K of ...
by rkhusky
Mon Feb 08, 2016 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Confused doctor's portfolio
Replies: 18
Views: 3067

Re: Confused doctor's portfolio

Minor quibble, but all your bonds are in muni's, whereas I like a bit more diversity by adding something like Total Bond in tax advantaged.
by rkhusky
Mon Feb 08, 2016 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Please share examples where earning an extra $1 can cost more in taxes than income.
Replies: 49
Views: 5685

Re: Please share examples where earning an extra $1 can cost more in taxes than income.

Elemental wrote:
rkhusky wrote:You don't lose all the child tax credit at once, it's $50 for every $1000 in income over $110K, i.e. an additional 5% tax on average.


To OP's point: If you earned $1000 you would lose $50. If you earned $1001, would you lose $100 (lose $50 for earning that $1)?

Yes.
by rkhusky
Mon Feb 08, 2016 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Please share examples where earning an extra $1 can cost more in taxes than income.
Replies: 49
Views: 5685

Re: Please share examples where earning an extra $1 can cost more in taxes than income.

You don't lose all the child tax credit at once, it's $50 for every $1000 in income over $110K, i.e. an additional 5% tax on average.
by rkhusky
Mon Feb 08, 2016 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Need to change (age-10) to (age-20)
Replies: 3
Views: 454

Re: Need to change (age-10) to (age-20)

Keep in mind that more stocks does not guarantee higher return, even over 20 years. Have a plan in case the risk shows up at the most inopportune time.
by rkhusky
Mon Feb 08, 2016 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Help Splitting a Target Date Fund
Replies: 15
Views: 1018

Re: Help Splitting a Target Date Fund

If you sell bonds and keep stocks the same, your portfolio will become riskier, unless you are rebalancing by selling bonds when stocks drop.
by rkhusky
Mon Feb 08, 2016 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Looking to rebalance, would love some advice
Replies: 12
Views: 780

Re: Looking to rebalance, would love some advice

I would say put you and your wife's IRA's into Vanguard TR 2050 (or 2045). Put your 403b into Voya U.S. Stock Index Portfolio - 54%, American Funds EuroPacific Growth Fund - 36%, and Voya Intermediate Bond Portfolio - 10%. Then rebalance your 403b when it gets too far from your Vanguard TR funds, w...
by rkhusky
Mon Feb 08, 2016 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Leave money in 401k or rollover to Roth IRA?
Replies: 3
Views: 283

Re: Leave money in 401k or rollover to Roth IRA?

You don't need the backdoor method for a Roth conversion. Make sure you have enough in Traditional to fill lower tax brackets in retirement.
by rkhusky
Sun Feb 07, 2016 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Looking to rebalance, would love some advice
Replies: 12
Views: 780

Re: Looking to rebalance, would love some advice

I would say put you and your wife's IRA's into Vanguard TR 2050 (or 2045). Put your 403b into Voya U.S. Stock Index Portfolio - 54%, American Funds EuroPacific Growth Fund - 36%, and Voya Intermediate Bond Portfolio - 10%. Then rebalance your 403b when it gets too far from your Vanguard TR funds, wh...
by rkhusky
Sat Feb 06, 2016 2:34 pm
Forum: Personal Consumer Issues
Topic: upgrade OS on older MAC?
Replies: 33
Views: 1588

Re: upgrade OS on older MAC?

Space and RAM notwithstanding (my 2011 MBP has plenty of both), you are leaving yourself open to a security nightmare by not running the latest version of OSX. If you need to keep old software, it should be 100% disconnected from the internet. I don't think so. Just be careful. I use NoScript with ...
by rkhusky
Sat Feb 06, 2016 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 45
Views: 1683

Re: 529 Question

Investing in taxable with tax efficient funds like Total Stock Market, Total International and Intermediate Tax Exempt can also be good. I suppose you could do the calculation of what the penalty would be if you take an unqualified withdrawal from the 529. Or you could transfer the account to other ...
by rkhusky
Sat Feb 06, 2016 12:06 pm
Forum: Personal Consumer Issues
Topic: upgrade OS on older MAC?
Replies: 33
Views: 1588

Re: upgrade OS on older MAC?

All your older software will need to be replaced. I'm in the same boat - 10.6.8 is the last OS that works with most of my software that uses Rosetta for translation.
by rkhusky
Sat Feb 06, 2016 11:34 am
Forum: Investing - Help with Personal Investments
Topic: TSP asset allocation
Replies: 7
Views: 668

Re: TSP asset allocation

I'm in my 30's with about 30 years to go until retirement. As a Fed I also get pension. I plan to rollover all of my retirement savings into TSP. Do I really need bonds in my portfolio? My pension is pretty much a fixed income asset. It seems I can go with an all equity allocation. You can't roll R...
by rkhusky
Sat Feb 06, 2016 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Please share examples where earning an extra $1 can cost more in taxes than income.
Replies: 49
Views: 5685

Re: Please share examples where earning an extra $1 can cost more in taxes than income.

I know there are exceptions but I never quite understood the commonly given advice to carefully watch going into a higher tax bracket. Isn't it true that the more you make the more you get with exceptions, many of which are pointed out in this thread. Only the dollars earned above the previous tax ...
by rkhusky
Sat Feb 06, 2016 11:11 am
Forum: Investing - Help with Personal Investments
Topic: Roth TSP questions
Replies: 7
Views: 535

Re: Roth TSP questions

The above is a possible way to get the Roth out of the TSP. Just make sure you leave the minimum amount behind ($200). See https://www.bogleheads.org/wiki/TSP_withdrawals For the general Roth vs. Traditional question, you need to consider the tax rate you are paying now vs. the tax rate on withdrawa...
by rkhusky
Fri Feb 05, 2016 12:22 pm
Forum: Investing - Theory, News & General
Topic: Situation where earning $1 more will cost $2000 in taxes
Replies: 9
Views: 1310

Re: Situation where earning $1 more will cost $2000 in taxes

The child tax credit can cause your taxes to increase by $50 for $1 more in income.
by rkhusky
Fri Feb 05, 2016 10:07 am
Forum: Investing - Help with Personal Investments
Topic: TSP doesn't credit dividends & interest?
Replies: 14
Views: 840

Re: TSP doesn't credit dividends & interest?

hornet96 wrote:
rkhusky wrote:They can do this because it is TSP funds are ONLY AVAILABLE in a tax advantaged account.


Important correction above.

Right. I was referring to the general class of funds that do this, e.g. my 529 funds.
by rkhusky
Fri Feb 05, 2016 10:02 am
Forum: Personal Finance (Not Investing)
Topic: IRS 1095 equivalent for short term health coverage?
Replies: 16
Views: 853

Re: IRS 1095 equivalent for short term health coverage?

I wouldn't recommend not paying, due to the interest and the fact that the government could change the rules and make them retroactive. Just commenting on how minor the issue currently is.
by rkhusky
Fri Feb 05, 2016 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Roth TSP questions
Replies: 7
Views: 535

Re: Roth TSP questions

Due to the pro-rata rule you can't just remove the Roth TSP portion and leave the non-Roth to avoid RMD's (at least not easily).
by rkhusky
Fri Feb 05, 2016 8:30 am
Forum: Personal Finance (Not Investing)
Topic: IRS 1095 equivalent for short term health coverage?
Replies: 16
Views: 853

Re: IRS 1095 equivalent for short term health coverage?

HueyLD wrote:I totally agree with PJW's statement that paying a penalty for not having MEC for the entire year does not mean that you have done anything illegal.

And it's not even a penalty, it's an additional tax. One that the IRS can only collect from your refund or by you volunteering to pay.
by rkhusky
Thu Feb 04, 2016 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: TSP doesn't credit dividends & interest?
Replies: 14
Views: 840

Re: TSP doesn't credit dividends & interest?

They can do this because it is a tax advantaged account. In taxable accounts they have to explicitly pay the dividends so the government can tax them.
by rkhusky
Thu Feb 04, 2016 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 952

Re: IRA Basis After Roth Conversion following TIRA loss

I see. So this is a case where one doesn't lose a loss in a tax advantaged account.
by rkhusky
Thu Feb 04, 2016 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard funds not to buy according to this article
Replies: 19
Views: 2878

Re: Picking winning and losing funds

Taylor Larimore wrote:I remember at the end of 1998 when U.S. Growth had the 2nd BEST ten-year return of ALL Vanguard Funds. Ten years later U.S. Growth had the WORST 10-year return.

I started investing in 1998 and chose US Growth based on its recent performance. I sold at a loss a number of years later.
by rkhusky
Thu Feb 04, 2016 11:55 am
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 952

Re: IRA Basis After Roth Conversion following TIRA loss

The OP said total balance of $6450.
by rkhusky
Thu Feb 04, 2016 9:45 am
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 952

Re: IRA Basis After Roth Conversion following TIRA loss

I didn't think you could claim losses in a IRA. I presume the contributions were non-deductible, but don't follow the 2% floor.
by rkhusky
Wed Feb 03, 2016 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over a pension cash payout to Roth IRA?
Replies: 4
Views: 307

Re: Rolling over a pension cash payout to Roth IRA?

You would have to pay taxes on the $3000.

And you should get it into an IRA within 60 days or you will be penalized.
by rkhusky
Mon Feb 01, 2016 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA to Roth IRA conversion?
Replies: 8
Views: 507

Re: Traditional IRA to Roth IRA conversion?

More on recharacterization: Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. To recharacterize a contribution, you generally must have the contribution transferred fro...
by rkhusky
Mon Feb 01, 2016 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA to Roth IRA conversion?
Replies: 8
Views: 507

Re: Traditional IRA to Roth IRA conversion?

If you don't declare the Traditional IRA contribution on your 1040 Line 32, then it will be taxed. And you will be taxed on the full $5500. A Roth IRA is always better than a non-deductible Traditional IRA. The Roth conversion will have no additional tax, unless you have other Traditional IRA amount...
by rkhusky
Sat Jan 30, 2016 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Just not interested any more [in investing]
Replies: 42
Views: 7166

Re: Just not interested any more [in investing]

Perhaps you should start looking into taxes. Lots of fascinating reading in the IRS publications.
by rkhusky
Sat Jan 30, 2016 7:55 am
Forum: Investing - Help with Personal Investments
Topic: How should I allocate my TSP?
Replies: 24
Views: 3651

Re: How should I allocate my TSP?

But it is tilted towards, when the L2050 fun started it was almost 2-to-1 C to S, and currently it's still tilted towards S because it holds a roughly 3-to-1 ratio right now. This is more than the roughly 4-to-1 ratio the actual market balance is. So they do tilt toward the S fund to gain some pote...
by rkhusky
Sat Jan 30, 2016 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing TSP and IRA?
Replies: 3
Views: 318

Re: Rebalancing TSP and IRA?

TSP I Fund also does not have small cap international. And unfortunately, now that Vanguard is adding small to their Emerging Market fund, you won't be able to complete the I Fund at Vanguard (you couldn't completely before due to the lack of Canadian stocks in the I Fund). If you use Emerging and F...
by rkhusky
Sat Jan 30, 2016 7:31 am
Forum: Investing - Help with Personal Investments
Topic: Making sense of my wife's 401(k)
Replies: 5
Views: 379

Re: Making sense of my wife's 401(k)

Sounds like she needs to simplify. How many funds does she own? What are the expenses? When you do the deep dive, do you find that the target date funds are comprised of many other mutual funds or just a few (5 or less)? If they hold individual stocks, are there 1000's of stocks and bonds? Those are...
by rkhusky
Sat Jan 30, 2016 7:23 am
Forum: Investing - Theory, News & General
Topic: Who else is holding in cash? [For future investing]
Replies: 66
Views: 4147

Re: Who else is holding in cash?

The only cash I hold is for paying bills. My "safe" money is in short term bonds. I also have intermediate bonds as longer term "safe" money. When the market drops, I will rebalance from bonds into stocks. When the market rises, I will rebalance from stocks into bonds.
by rkhusky
Wed Jan 27, 2016 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Roth VS Trad 401k
Replies: 12
Views: 992

Re: Roth VS Trad 401k

Traditional 401k. Roth IRA via backdoor two-step process (nondeductible IRA followed by Roth conversion). Efficient taxable investing with Total Stock Market, Total International, and/or Intermediate Tax Exempt.
by rkhusky
Wed Jan 27, 2016 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution
Replies: 4
Views: 376

Re: Roth IRA Contribution

You can also contribute to a Roth for your wife.
by rkhusky
Wed Jan 27, 2016 6:06 pm
Forum: Investing - Help with Personal Investments
Topic: How do I decide on Asset Allocation for a 3-fund portfolio
Replies: 11
Views: 1107

Re: How do I decide on Asset Allocation for a 3-fund portfolio

I would suggest at least 10% bonds, maybe 20%. Also between 30% and 40% in international.
by rkhusky
Wed Jan 27, 2016 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution
Replies: 4
Views: 376

Re: Roth IRA Contribution

If you are within income limits, do direct Roth contribution. If outside limits, do non-deductible IRA, followed soon by a Roth conversion. The latter procedure has added complexity if you have significant Traditional IRA funds. For most situations, a taxable account is better than non-deductible IRA.
by rkhusky
Wed Jan 27, 2016 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: How to implement a glide path
Replies: 37
Views: 2063

Re: How to implement a glide path

I change my AA along my chosen glide path at the start of every year. Like the OP, my bond allocation changes by 1-2% per year. I just put it into my spreadsheet as the target allocation, and when I need to rebalance I do so. Smoothing it out over the whole year seems like too much work. And the cha...
by rkhusky
Wed Jan 27, 2016 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Who came closest to a $0 [taxes due]?
Replies: 62
Views: 3644

Re: Who came closest to a $0 [taxes due]?

I'm estimating a $30 refund, which is a a fail, because I shoot to owe $500.

Go to advanced search