Search found 2973 matches

by rkhusky
Sun Feb 07, 2016 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Looking to rebalance, would love some advice
Replies: 8
Views: 476

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: 16
Views: 695

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: 44
Views: 1474

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: 16
Views: 695

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: 6
Views: 505

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: 25
Views: 2766

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: 518

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: 1272

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: 822

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: 15
Views: 735

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: 518

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: 15
Views: 735

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: 822

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: 921

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: 2843

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: 921

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: 921

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: 292

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: 500

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: 500

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: 7121

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: 3570

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: 317

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: 4057

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: 9
Views: 667

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: 375

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: 1101

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: 375

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: 2062

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: 3637

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.
by rkhusky
Tue Jan 26, 2016 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

Perhaps I need to be reminded what the algorithm is. I seem to remember something about contribute to Traditional until you have enough that withdrawals will be at the top of the 15% marginal rate and then start Roth contributions. If that's not it, perhaps you could post a link to the post with th...
by rkhusky
Tue Jan 26, 2016 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

Because an algorithm has already been provided multiple times, it won't be repeated here. Evidently you don't like it. Fine, it's a free country, so one can like or dislike what one wants. As you are the only one objecting, however, until you can provide a better one.... I dunno. Most of the questi...
by rkhusky
Tue Jan 26, 2016 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

IMHO, your existing algorithm is optimum. If you were to come a new algorithm that fit his requirement, it will be sub-optimal since it does not account for the possibility that a person may be forced into early retirement / under-employment / under-employment. His requirement counts the chickens b...
by rkhusky
Tue Jan 26, 2016 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

Because an algorithm has already been provided multiple times, it won't be repeated here. Evidently you don't like it. Fine, it's a free country, so one can like or dislike what one wants. As you are the only one objecting, however, until you can provide a better one.... I dunno. Most of the questi...
by rkhusky
Tue Jan 26, 2016 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

rkhusky, could you propose your algorithm that covers all situations and let other posters opine on its validity? Sure, if you can provide an algorithm that does not require waiting to make a decision until one has contributed significant amounts to one's retirement accounts. I am interested in an ...
by rkhusky
Mon Jan 25, 2016 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

There are no two ways. It is a simple scenario. The person in question is currently contributing to a Traditional 401K with a marginal tax rate of 25%. In retirement he will be withdrawing from the Traditional 401K at a marginal rate of 25%. How do you know he will be? By your rules in this example...
by rkhusky
Mon Jan 25, 2016 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

If your marginal tax rate now is higher than your estimated marginal tax rate at retirement, then the traditional account is better; if it is lower, then the Roth account is better. There are no two ways. It is a simple scenario. The person in question is currently contributing to a Traditional 401...
by rkhusky
Mon Jan 25, 2016 12:53 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing, another study
Replies: 94
Views: 7326

Re: Rebalancing, another study

I note that the author found that checking weekly was better than less frequently and referenced a study that found that daily was better than weekly. I presume that in this study the rebalancing occurred on the next trading day at the next day's prices. If one had an automatic rebalancing capabilit...
by rkhusky
Mon Jan 25, 2016 9:36 am
Forum: Investing - Help with Personal Investments
Topic: What happens after target year is reached
Replies: 6
Views: 611

Re: What happens after target year is reached

Vanguards moves to TR Income (30/70) after about 7 years. I would not assume that other company's are similar. For example, here is a quote from Fidelity's site: Freedom Funds are generally expected to reach their most conservative allocation 10-19 years after the target date. They still list the Fi...
by rkhusky
Mon Jan 25, 2016 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

But now he realizes that one of his assumptions (i.e., assuming his marginal tax rate will be the same in retirement as it is now) isn't correct because he could contribute enough to Roth to invalidate that assumption. But he isn't contributing to a Roth now and he will withdraw enough in retiremen...
by rkhusky
Mon Jan 25, 2016 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

If your marginal tax rate now is higher than your estimated marginal tax rate at retirement, then the traditional account is better; if it is lower, then the Roth account is better. If he can max out a Roth, then the Roth is better because it effectively allows him to tax-defer more income. Even th...
by rkhusky
Sun Jan 24, 2016 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

But now he realizes that one of his assumptions (i.e., assuming his marginal tax rate will be the same in retirement as it is now) isn't correct because he could contribute enough to Roth to invalidate that assumption. But he isn't contributing to a Roth now and he will withdraw enough in retiremen...
by rkhusky
Sat Jan 23, 2016 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

Gathering everything in one place. A single person contributes to a Traditional 401K. His salary and 401K contribution are such that the entire contribution is taxed at 25% (marginal rate=average rate=25%). He expects this to continue for his entire career (salary/tax rates/contributions tracking in...
by rkhusky
Fri Jan 22, 2016 7:21 am
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

Recall that this is an illustrative example to test the Roth vs Traditional advice quoted from the Wiki. This is not actually what I am doing or what I would necessarily advise others to do. It is simply a constrained example meant to remove as much variability from the question as possible and stri...
by rkhusky
Fri Jan 22, 2016 6:52 am
Forum: Investing - Help with Personal Investments
Topic: Where should I invest?
Replies: 25
Views: 1018

Re: stocks in Roth IRA

What are you doing with the proceeds of the sale of the stock? Buying something else within the Roth IRA? Then you can buy/sell at will, subject only to the restrictions of your Roth IRA provider. But if you are buying something outside the Roth IRA (i.e. making a withdrawal from the Roth IRA), then...
by rkhusky
Thu Jan 21, 2016 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

No, as I suspect you know full well, there is no consensus here - other than that of every other poster telling you that you are poorly describing what you want at best and simply incorrect at worst Even though my question at the bottom of post https://www.bogleheads.org/forum/viewtopic.php?f=2&...
by rkhusky
Thu Jan 21, 2016 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

rkhusky, <<For example, in the 25% marginal tax bracket, it makes a difference if your average tax rate is 11% vs 25%.>> If the marginal tax rate is 25%, how could the average tax rate be 25%? It would have to be lower. KlangFool Average tax rate on the 401K/IRA withdrawal portion of the income. Th...
by rkhusky
Thu Jan 21, 2016 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

Even though my question at the bottom of post https://www.bogleheads.org/forum/viewtopic.php?f=2&t=182081&newpost=2767811&start=100#p2766913 about what percentage of my portfolio should be in Roth if both my contribution and withdrawal marginal rates were 25%, was never answered satisfa...
by rkhusky
Thu Jan 21, 2016 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401k versus Roth 401k
Replies: 219
Views: 9542

Re: Traditional 401k versus Roth 401k

KlangFool wrote:In summary, it is close to impossible for a person to contribute fully to Trad. 401K at 15% tax bracket and retire at 25% tax bracket. You will need some kind of inheritance or strike a lottery.
KlangFool

Not close to impossible, just unlikely for a rational person.

Go to advanced search