Search found 27 matches

by wishful_thinking
Tue Apr 25, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-sheltering and target retirement fund disadvantages
Replies: 18
Views: 1430

Re: Tax-sheltering and target retirement fund disadvantages

You've probably already checked this, but before you open a taxable account to save for retirement, make sure you don't have access to another tax advantaged account, like a 457. I see you mentioned a 403b. Often people with access to a 403b will also have access to a 457 and you're allowed to contr...
by wishful_thinking
Mon Mar 27, 2017 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Cross vendor plan with Fidelity and 403b
Replies: 5
Views: 469

Re: Cross vendor plan with Fidelity and 403b

Go here: https://nb.fidelity.com/public/nb/ready2enroll/planoptions Click on "investment options" and you'll see a list of all the funds they offer within their 403b plan, as well as their expense ratios and past performance data. Because the 403b funds are pooled, you have access to "...
by wishful_thinking
Mon Mar 27, 2017 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: Question on managing own 403b
Replies: 25
Views: 1344

Re: Question on managing own 403b

Good luck getting out! Fidelity is the way to go once you figure out how to get out of the old plan. I just looked into all of my 403b options and Fidelity was by far the best. They charge an annual $24 flat fee (administrative fee) and don't require an advisor. You can choose your funds yourself an...
by wishful_thinking
Thu Mar 23, 2017 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: Sorting through 403b/457 options...
Replies: 20
Views: 1060

Re: Sorting through 403b/457 options...

I'm in the process of enrolling in the 457 plan. Following Mudpuppy's advice about funds, I went with an asset allocation of 90/10 stocks/bonds and 30% international, which gave me this: 10% U.S. Bond Index (.04% ER) 27% International Stock Index Fund (.09% ER) 57% Large Company Stock Index Fund (.0...
by wishful_thinking
Thu Mar 23, 2017 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Sorting through 403b/457 options...
Replies: 20
Views: 1060

Re: Sorting through 403b/457 options...

If the particular fund or stock you decide to sell has a current value of 150k with long term cap gains of 75k, the 150k goes into your taxable account. The 75k is taxed at the cap gain rates. That rate is usually either 0% or 15%, depending. That’s an advantage that taxable accounts have over tax-...
by wishful_thinking
Sun Mar 19, 2017 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Help me help my GF with her Oppenheimer 403(b)...
Replies: 28
Views: 2385

Re: Help me help my GF with her Oppenheimer 403(b)...

My Roth IRA at Vanguard is in a Target Date Fund. Low ER, rebalances itself, and no need to overly complicate things. As my balance grows, I plan to create my own 3 fund portfolio with admiral shares, but for now the Target Date fund makes the most sense for me, and might for your GF too. Did you ev...
by wishful_thinking
Sun Mar 19, 2017 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Sorting through 403b/457 options...
Replies: 20
Views: 1060

Re: Sorting through 403b/457 options...

I think you plan to max out your tax deferred accounts and use other funds for living expenses is a good one. Don’t make the dumb mistake I once made on capital gains. Even though LTCG are taxed at 0% in the 15% bracket, they are added to all the other taxable income to determine how much is taxed ...
by wishful_thinking
Sun Mar 19, 2017 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Sorting through 403b/457 options...
Replies: 20
Views: 1060

Re: Sorting through 403b/457 options...

We opted for the 457 vs 403 due to the structure differences of 457 vs 403 (portability and access post early retirement). I did not spend to much time investigating the options in 403 given my bias to the 457, which has the low fee options noted in the OP and by other posters. I am delighted to se...
by wishful_thinking
Sun Mar 19, 2017 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Sorting through 403b/457 options...
Replies: 20
Views: 1060

Re: Sorting through 403b/457 options...

The 457 plan options are excellent, and like you say, it gives you flexibility if you leave your job. In that way, you can even treat it as an emergency funding source in the case of unemployment. I would max that first unless you get a 403 match in which case I'd contribute to get the 403 match an...
by wishful_thinking
Sun Mar 19, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Sorting through 403b/457 options...
Replies: 20
Views: 1060

Re: Sorting through 403b/457 options...

Do you agree that Fidelity seems to be the best option in this case? I was initially leaning towards ASPire after listening to the Teach and Retire Rich interview but it seems Fidelity's costs would be lower. Security Benefit is tempting with the no fee over 50K. Maybe that's something to consider ...
by wishful_thinking
Sat Mar 18, 2017 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Sorting through 403b/457 options...
Replies: 20
Views: 1060

Re: Sorting through 403b/457 options...

Mudpuppy , thank you for the thoughtful response. I agree that Fidelity seems like the best option. If I didn't have access to the Premium funds, I wasn't seeing too many with low expense ratios. But the three fund portfolio you suggested looks perfect. So I'm thinking something like this: 10% Fide...
by wishful_thinking
Sat Mar 18, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Sorting through 403b/457 options...
Replies: 20
Views: 1060

Sorting through 403b/457 options...

I've gone through several old threads and learned so much about 403b/457 plans in general. I'm hoping for some advice about my options, which fortunately seem decent, but overwhelming. I'm hoping that others with more experience with any of these providers can help me clarify a few things before I e...
by wishful_thinking
Wed Mar 15, 2017 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Balancing saving for a house and retirement
Replies: 8
Views: 541

Re: Balancing saving for a house and retirement

You have like 400k+ dollar in taxable between the UGMA, taxable account, house fund, savings,....Don't you think that is plenty of money? Personally in your boat I would maxing out those tax advantaged spaces. Shoving 18k in a ROTH instead of having 18k in taxable tends to be good move. I would say...
by wishful_thinking
Wed Mar 15, 2017 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Balancing saving for a house and retirement
Replies: 8
Views: 541

Re: Balancing saving for a house and retirement

Tax Rate: 25% federal, 5.1% (MA) How far are you into the 25% Federal tax bracket? If you are not too far into the 25% tax bracket then it could make sense to contribute enough to your deductible retirement accounts to get down into the 15% tax bracket. I would keep maxing out the Roth accounts sin...
by wishful_thinking
Wed Mar 15, 2017 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Balancing saving for a house and retirement
Replies: 8
Views: 541

Balancing saving for a house and retirement

Lately I've been wondering about how to allocate our monthly savings between retirement and a home purchase. Given our financial situation (below), I'd love input into how you would suggest prioritizing these and your opinion about whether we're saving enough for retirement in general. I've run numb...
by wishful_thinking
Mon Mar 13, 2017 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

This is the only information I see about bases in the account: Non-covered Shares (purchased before 2012) 31.73/share 50,603 total cost 121,246 current value 70643 long term gain Covered Shares (after 2012) 62.20/share 20,918 total cost 25,570 current value 271 short term gain 4381 long term gain Fr...
by wishful_thinking
Mon Mar 13, 2017 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

Thanks for the very clear explanation ICMoney. I see information about the total long-term and short-term capital gains online but haven't found anything about the cost basis, other than that the method is "average". I believe my father-in-law invested this money all at once though, at lea...
by wishful_thinking
Mon Mar 13, 2017 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

OP, are there lots that have a significantly higher amount of capital gains than others? If so, then you could use the strategy I outlined above and just sell the lots with the highest capital gains during 2017 at 0% capital gains rate, and then sell the rest during 2018. This could decrease the ta...
by wishful_thinking
Mon Mar 13, 2017 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

Theoretical wrote:What are the capital gains in the Oakmark?


75,000 long-term
200 short-term
by wishful_thinking
Mon Mar 13, 2017 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

Thank you for all the advice so far! Based on what everyone has said, I plan to: 1) Move my husband's Federated (2% ER) Roth IRA (former custodial account) to Vanguard. 2) Re-invest in either a Target Date Fund (for now) or create a 3 or 4 fund Lazy Portfolio with Admiral Shares. No tax implications...
by wishful_thinking
Mon Mar 13, 2017 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

I might have missed it be be sure to take the RMD from the inherited Roth IRA. I should have been clearer...it's not an inherited IRA. It's a custodial IRA that my father-in-law set up for my husband once he had earned income. So it's always been my husband's account. We just recently learned about...
by wishful_thinking
Sun Mar 12, 2017 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

Got it! Thanks for clarifying. I will definitely do that. Does anyone have any advice about how to move this money to Vanguard and reinvest in low-cost index funds while minimizing the tax implications of $75,000 in capital gains? I'm an elementary school teacher, and all of this is fairly new to me...
by wishful_thinking
Sun Mar 12, 2017 8:44 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

Long-term capital gains are around $75,000. Is it still worth selling and switching to Vanguard? What would the tax implications of this be? Like aristotelian said, it depends on your income tax bracket. Either 15 or 20%. Now, of course, that could change but we're not allowed to speculate on that ...
by wishful_thinking
Sun Mar 12, 2017 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

Putting money in CD's in not investing. You offset stock market risk with bonds. Bottom line is that you want to invest in super low cost, tax efficient stock and bond index funds like SPY and BND. Index funds just keep beating actively managed funds year after year. The reason I was considering CD...
by wishful_thinking
Sun Mar 12, 2017 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

2) Suggestions for the taxable account with Oakmark? The ER (.89%) is high but the fund has performed very well (30.15% 1 year return according to Morningstar). Are there any tax implications I should consider if we do move it? An "in-kind" transfer should not trigger any taxes. Obviously...
by wishful_thinking
Sun Mar 12, 2017 7:17 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Re: Inherited 300K, how to reinvest?

I would absolutely move the IRA to Vanguard and get it set up however you want. Do a search for "three fund portfolio" or pick a Target Date fund that suits. Yes, I completely agree about moving the IRA to Vanguard. We're looking into this now. And I plan on doing a three fund portfolio. ...
by wishful_thinking
Sun Mar 12, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 300K, how to reinvest?
Replies: 30
Views: 2481

Inherited 300K, how to reinvest?

Hi everyone! I've been lurking for years, but this is my first time posting. I've figured out so much from the Wikis and forum but I'm still learning and hoping for some advice. My husband has two accounts his parents originally established as custodial accounts--a Roth IRA and a taxable investment ...

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