Search found 854 matches

by CppCoder
Wed Jan 16, 2019 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: 401k After Tax contributions to Roth-IRA Tax questions.
Replies: 11
Views: 922

Re: 401k After Tax contributions to Roth-IRA Tax questions.

One question that was asked and was not yet answered was about the need for an 8606 or similar form for doing the mega backdoor Roth. No, you do not need to fill out an 8606. Your company will send you a 1099R to account for the rollover. It will indicate the amount of the rollover that is taxable. ...
by CppCoder
Tue Jan 15, 2019 7:57 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2938

Re: Are mega back door Roth contributions considered contributions?

If you wish to do any non-simple IRA withdrawals (I'm defining this as withdrawals prior to 59.5), you really need to read IRS PUBs 590 A and B carefully. A is for contributions and B is for withdrawals. Here are some links: https://www.irs.gov/publications/p590a https://www.irs.gov/publications/p59...
by CppCoder
Mon Jan 14, 2019 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Mega-backdoor Roth has a loss
Replies: 13
Views: 1269

Re: Mega-backdoor Roth has a loss

My 401k tracks this "loss." Currently, I have $0 in my after tax account (just did an IRR on 1/2), but I have a nonzero basis/contribution amount. I've been in this situation for several years now. I never have large losses or gains because my after tax contributions are in bond funds until they are...
by CppCoder
Wed Jan 02, 2019 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: mega-backdoor 401k is with Fidelity. Should I open a 2nd Roth with them or can I roll over directly to Vanguard?
Replies: 9
Views: 484

Re: mega-backdoor 401k is with Fidelity. Should I open a 2nd Roth with them or can I roll over directly to Vanguard?

It does support in-plan, but my understanding is the growth does not grow tax-prepaid and only the principal does, or something funny like that? No, if you do an in-plan Roth rollover (IRR), whatever amount you move into your Roth 401k account will grow tax free. It's no different than the 401k to ...
by CppCoder
Tue Jan 01, 2019 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: back door roth question - small amount left in traditional ira
Replies: 7
Views: 342

Re: back door roth question - small amount left in traditional ira

I had something similar happen last year with my Fidelity account. I had 8 cents "leftover" (interest from the holding that showed up after the conversion). I didn't want a nonzero balance at year end, so I tried to convert 8 cents from tIRA to Roth, and Fidelity allowed that. Turns out that 8 cents...
by CppCoder
Tue Jan 01, 2019 6:17 pm
Forum: Personal Consumer Issues
Topic: Canon 100-400 zoom lens
Replies: 29
Views: 1137

Re: Canon 100-400 zoom lens

My father-in-law is a semi-pro photographer who shoots exclusively with Canon. He prefers the 70-200mm lens because it comes in an f/2.8. That lens is a beast in both price and weight. I'm not sure if lens speed matters to you, but it's something to consider for certain applications.
by CppCoder
Tue Jan 01, 2019 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: FSKAX and FZROX, FTIHX and FZILX
Replies: 10
Views: 1191

Re: FSKAX and FZROX, FTIHX and FZILX

I'll note that the zero funds pair well with the low cost index funds for tax loss harvesting if you are talking about a taxable account. Of course, many will tell you that you should hold neither in taxable as Fidelity mutual funds aren't terribly tax efficient. Instead, people will direct you towa...
by CppCoder
Mon Dec 31, 2018 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: After Tax 401(k) to Roth IRA
Replies: 21
Views: 1157

Re: After Tax 401(k) to Roth IRA

I believe the pro-rata rule only comes into play if you have any traditional type IRA (TIRA, SEP, SIMPLE, etc) that holds a balance at the end of the year. If you do not have any of these, you should be good to go I believe. Pro-rata rules would only come into play for the "regular" backdoor Roth I...
by CppCoder
Sun Dec 30, 2018 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: After Tax 401(k) to Roth IRA
Replies: 21
Views: 1157

Re: After Tax 401(k) to Roth IRA

I believe the pro-rata rule only comes into play if you have any traditional type IRA (TIRA, SEP, SIMPLE, etc) that holds a balance at the end of the year. If you do not have any of these, you should be good to go I believe. Pro-rata rules would only come into play for the "regular" backdoor Roth I...
by CppCoder
Thu Dec 27, 2018 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Side Hustle? Passive Income?
Replies: 71
Views: 8423

Re: Side Hustle? Passive Income?

I wrote a technical book. It makes me tens of dollars a quarter! I don't recommend this as an income stream. I literally could have made more money spending the time mowing the neighbors' yards. That said, I would do it again. My goal was never to make money from it. When I was younger, I taught a g...
by CppCoder
Sat Dec 08, 2018 10:39 am
Forum: Investing - Help with Personal Investments
Topic: NAV for Fidelity Total Market Index
Replies: 3
Views: 314

Re: NAV for Fidelity Total Market Index

The fund's NAV as you've listed it is simply the net asset value of the fund (sum of stocks, bonds, cash, etc.) divided by the number of shares. When a fund is created, the per share value is arbitrary because the fund company can subdivide their initial pool of assets into any number of shares they...
by CppCoder
Sat Dec 08, 2018 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions
Replies: 12
Views: 861

Re: Roth Conversions

Will you spend all of the RMDs? There is also a difference if the Roth conversion allows you to avoid the RMD or at least lower it to an amount of money you intend to use. If you will not spend the entire RMD, you are paying 22% tax to move the money to taxable. In that case, you may as well pay the...
by CppCoder
Tue Dec 04, 2018 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: How does an annuity with return of premium work?
Replies: 12
Views: 821

Re: How does an annuity with return of premium work?

Other than the fact that if you select a return of premium the monthly payout amount will be less, and if part of the premium is refunded you will have lost the compounding value of that amount over the year, are there other downsides? I don't understand your question. A simple annuity is not an in...
by CppCoder
Tue Dec 04, 2018 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Why Is Insurance Worth It (Analytically)?
Replies: 89
Views: 4375

Re: Why Is Insurance Worth It (Analytically)?

Insurance is a risk management product, not an investment. I buy clothes because my body needs protection from the elements. I expect no return on my clothes. I buy insurance to mitigate my risk. Insurance is worth it not if you receive more than you pay in. It is worth it if it fairly prices the ri...
by CppCoder
Mon Nov 19, 2018 4:16 pm
Forum: Investing - Theory, News & General
Topic: Vanguard lowering Admiral level to $3,000?
Replies: 225
Views: 18446

Re: Vanguard lowering Admiral level to $3,000?

I wonder if it's only me or whether lots of other clients will also find it irritating that Vanguard is making a big splash about lowering the admiral fee level, then when you click on the link that tells you the funds are eligible, you get a notice that you have no funds that meet the criteria and...
by CppCoder
Sat Nov 03, 2018 6:29 pm
Forum: Personal Consumer Issues
Topic: Post FiRE job...teaching??
Replies: 33
Views: 4005

Re: Post FiRE job...teaching??

If you enjoy traveling, consider corporate training. I've taught graduate classes in college and done corporate training at our in-house training facility (we use a mix of vendors and in-house practitioners for training depending on the subject). Personally, I've found the corporate training to be m...
by CppCoder
Sat Nov 03, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Mega ROTH conversion
Replies: 19
Views: 1328

Re: Backdoor Mega ROTH conversion

If you have to wait 6 months to contribute, why couldn't you just save and load up on contributions for the 6 months afterwards? Exactly. I only make after-tax contributions after I fill up my pretax limit. Essentially, it's 5.5 months of pretax and then 5.5 months of after-tax and then conversion....
by CppCoder
Fri Nov 02, 2018 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Mega ROTH conversion
Replies: 19
Views: 1328

Re: Backdoor Mega ROTH conversion

If you have to wait 6 months to contribute, why couldn't you just save and load up on contributions for the 6 months afterwards? Exactly. I only make after-tax contributions after I fill up my pretax limit. Essentially, it's 5.5 months of pretax and then 5.5 months of after-tax and then conversion....
by CppCoder
Thu Nov 01, 2018 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating ROI for PhD
Replies: 86
Views: 4905

Re: Calculating ROI for PhD

Don't get a PhD for the ROI. Do it so you can study what you want and never have a boss. What does having a phD have to do with not having a boss? Unless you own your own company you will always have someone above you who tells you what to do. The PHD from MIT working at Citadel has a boss (like my...
by CppCoder
Tue Oct 30, 2018 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating ROI for PhD
Replies: 86
Views: 4905

Re: Calculating ROI for PhD

Don't get a PhD for the ROI. Do it so you can study what you want and never have a boss. What does having a phD have to do with not having a boss? Unless you own your own company you will always have someone above you who tells you what to do. The PHD from MIT working at Citadel has a boss (like my...
by CppCoder
Fri Oct 26, 2018 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Things to consider when relocating from Boston to Toronto
Replies: 28
Views: 2606

Re: Things to consider when relocating from Boston to Toronto

WhiteMaxima wrote:
Fri Oct 26, 2018 12:12 pm
Interlectural wise, University of Toronto is no less than Harvard and MIT.
Certainly, you must be Canadian. No American would say this. Also, it's not true (full disclosure, MIT Ph.D.). :wink:
by CppCoder
Sun Oct 21, 2018 3:57 pm
Forum: Personal Consumer Issues
Topic: Why Purchase an Automobile using Premium Gasoline?
Replies: 68
Views: 3184

Re: Why Purchase an Automobile using Premium Gasoline?

Not to get too far off topic but I have always wondered when I go to the pump and buy premium fuel, is the first gallon or so of the gas I get from the pump the grade of fuel the previous customer had? For instance if the guy before me bought 87 Octane and I then step up next and buy 91 Octane, isn...
by CppCoder
Sat Oct 20, 2018 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Put more than 20% down on a house?
Replies: 33
Views: 3650

Re: Put more than 20% down on a house?

I'm not sure I feel comfortable going with a 15 yr mortgage. That would be a pretty large monthly payment. I do plan on paying extra mortgage payments but I would like the flexibility of not having a large payment due every month. If you could get a 15 year loan at 4%, it would add about $1300/mont...
by CppCoder
Sat Oct 13, 2018 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: ESPP vs. Mega Backdoor Roth
Replies: 19
Views: 522

Re: ESPP vs. Mega Backdoor Roth

retiredjg wrote:
Sat Oct 13, 2018 12:24 pm
As for option #2, there is no logic in converting some every quarter. Just convert it all to Roth immediately. This will reduce taxes and get the money into Roth sooner.
The plan may limit it to quarterly conversions. My plan limits it to once a year.
by CppCoder
Sat Oct 13, 2018 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: ESPP vs. Mega Backdoor Roth
Replies: 19
Views: 522

Re: ESPP vs. Mega Backdoor Roth

Would you... 1. ESPP - 10% discount on purchase once a quarter. Have to hold for minimum 21 months before selling to avoid higher tax rates. Microsoft stock if that matters. 2. Mega Backdoor Roth - contribute fully to the After Tax portion of my 401k plan and have it converted quarterly to Roth con...
by CppCoder
Sat Oct 06, 2018 8:35 am
Forum: Investing - Theory, News & General
Topic: 7 Investing Truths That Aren't
Replies: 53
Views: 6147

Re: 7 Investing Truths That Aren't

Investing doesn't have to be complicated, but I fail to see why we reducing it to the level of third grade understanding is worthwhile. If that was truly the optimal solution, then 95% of what goes on in this forum is counter-productive. We should just tell everyone to invest everything in low cost...
by CppCoder
Sun Sep 30, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner. Want to get mega-rich. Help with portfolio, tips, etc.
Replies: 87
Views: 8697

Re: Beginner. Want to get mega-rich. Help with portfolio, tips, etc.

Investing is a long, slow way to grow your wealth. You will not become mega-rich investing. It's nothing against you, it's just not how it works. To become mega-rich (let's define that as net worth of 50-100 million dollars or more), you have only a few options. They are things like start a wildly ...
by CppCoder
Sun Sep 30, 2018 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner. Want to get mega-rich. Help with portfolio, tips, etc.
Replies: 87
Views: 8697

Re: Beginner. Want to get mega-rich. Help with portfolio, tips, etc.

Investing is a long, slow way to grow your wealth. You will not become mega-rich investing. It's nothing against you, it's just not how it works. To become mega-rich (let's define that as net worth of 50-100 million dollars or more), you have only a few options. They are things like start a wildly s...
by CppCoder
Fri Sep 28, 2018 8:35 pm
Forum: Investing - Theory, News & General
Topic: Income Limits on IRA, 401k, and HSA Max Out?
Replies: 11
Views: 1492

Re: Income Limits on IRA, 401k, and HSA Max Out?

money_bunny wrote:
Fri Sep 28, 2018 7:49 pm
Road2Wealth wrote:
Fri Sep 28, 2018 7:25 pm
$19K for 401k, $6K for IRA,
Did I miss a change? I thought it was $18000 for 401K's and $5500 for IRA's.
Yes, you apparently missed 2018, as the 401(k) limit for this year is $18,500. Increases for next year are still projections until the official announcement in, I believe, October.
by CppCoder
Sat Sep 15, 2018 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Does this job exist (another want-to-quit-corporate-world thread)?
Replies: 35
Views: 3788

Re: Does this job exist (another want-to-quit-corporate-world thread)?

Offshore oil rig roughneck? I'm not sure how much thought and creativity it requires, but fits your other criteria with even higher pay.
by CppCoder
Sat Sep 08, 2018 10:51 am
Forum: Investing - Help with Personal Investments
Topic: Questions on Mega BackDoor Roth IRA
Replies: 14
Views: 1175

Re: Questions on Mega BackDoor Roth IRA

Hello all, I've been doing some research on the Mega BackDoor Roth IRA but have a few questions about it. 1) It seems that the key here is you must contribute "After Tax" funds to your 401k. Some of the websites I looked at made it sounds like you must first max out your pretax money in order to co...
by CppCoder
Sat Sep 08, 2018 10:40 am
Forum: Personal Consumer Issues
Topic: Is it sensible to buy a car from Elon Musk?
Replies: 59
Views: 3261

Re: Is it sensible to buy a car from Elon Musk?

No. Absolutely not. I've never met the guy, but I just have this odd feeling that his car would come with weird stains or have a funny odor I couldn't get rid of. I mean, his name is "Musk." He's literally warning you of the smell. Oh, you meant would I buy a car from Tesla, the company, not from El...
by CppCoder
Sat Sep 01, 2018 2:20 pm
Forum: Personal Consumer Issues
Topic: The twenty dollar rule
Replies: 44
Views: 3985

Re: The twenty dollar rule

This will work until your wife learns about invoice splitting...
by CppCoder
Sat Sep 01, 2018 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: My 401K plan
Replies: 4
Views: 459

Re: My 401K plan

The 0.36% isn't great, but it isn't terrible. I suspect you work for a relatively small employer, and they have to pay for the administration of their 401k. At least you have low ER underlying Vanguard funds. On the flip side, I work for a megacorp, and my company pays 100% of administrative fees, a...
by CppCoder
Sat Sep 01, 2018 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Conversion to Roth, and Pro-Rata rule
Replies: 15
Views: 947

Re: Conversion to Roth, and Pro-Rata rule

I agree with livesoft that the 8606 is an easy form. However, make sure you conceptually understand the mechanics of the pro rata rule before you fill out your 8606. It makes it easier. You'll know ahead of time what the answer should be, and after you fill out the 8606, you'll know if you did it ri...
by CppCoder
Sat Sep 01, 2018 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Conversion to Roth, and Pro-Rata rule
Replies: 15
Views: 947

Re: Conversion to Roth, and Pro-Rata rule

retiredjg wrote:
Sat Sep 01, 2018 2:02 pm
Why are you considering conversions now while one or both of you is working? Why not wait for retirement when your tax rate is likely to be lower?
Given that OP talks about wanting to withdraw before age 55, I'm guessing she is trying to start the five year conversion clock.
by CppCoder
Fri Aug 31, 2018 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Are quarterly Roth conversions of after-tax contributions to a 401(k) roughly equivalent to a Mega Backdoor Roth?
Replies: 22
Views: 1311

Re: Are quarterly Roth conversions of after-tax contributions to a 401(k) roughly equivalent to a Mega Backdoor Roth?

madbrain wrote:
Fri Aug 31, 2018 4:52 pm
Most companies don't match on after-tax contributions, even if they match on salary deferrals.
Really? I like my employer's 401(k) more and more every day.
by CppCoder
Fri Aug 31, 2018 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring. 28 y.o. $5M in cash. Asking for advice for portfolio.
Replies: 79
Views: 13879

Re: Retiring. 28 y.o. $5M in cash. Asking for advice for portfolio.

With a reasonable withdrawal rate, statistically speaking, any fixed AA should be successful. Your biggest risk is the person in the mirror, that is, behavioral risk, not financial risk. Therefore, the best AA is the one you'll keep in good times and bad. Whatever portfolio volatility you think you ...
by CppCoder
Wed Aug 29, 2018 9:03 pm
Forum: Investing - Theory, News & General
Topic: Expense ratios and fees - Fidelity and flip flopping advice
Replies: 61
Views: 4552

Re: Expense ratios and fees - Fidelity and flip flopping advice

I haven't yet jumped to the zero funds (yet?), and my taxable account is invested in Fidelity mutual funds at Fidelity. On the international front, the small cap exposure in FTIPX is worth the 0.06% ER. I suspect that these funds will perform differently. I may come out ahead or I may come out behin...
by CppCoder
Wed Aug 29, 2018 5:51 pm
Forum: Investing - Help with Personal Investments
Topic: Treasuries - how to buy (not using Treasury Direct)
Replies: 20
Views: 2253

Re: Treasuries - how to buy (not using Treasury Direct)

You can buy them directly at Fidelity, but I just buy shares of FIBAX, Fidelity's intermediate term treasury fund (they also have treasury funds with longer and shorter durations). The expense ratio for the fund is only 0.03%, which, for me, justifies the convenience. Of course, one might be buying ...
by CppCoder
Sun Aug 26, 2018 4:43 pm
Forum: Personal Consumer Issues
Topic: Best ultra thin pocket knife?
Replies: 54
Views: 3682

Re: Best ultra thin pocket knife?

"Just wealth-signaling" Trouble is, my knives stay in my pocket 99.5% of the time. They aren't like wrist watches. ;) I love Chris Reeve knives. Exceptionally useful, but quite expensive. That reminds me, I need to send one of my Sebenzas back for sharpening. I know how to sharpen knives, but some ...
by CppCoder
Sun Aug 26, 2018 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff?
Replies: 27
Views: 2734

Re: Mortgage Payoff?

Now that my brokerage balance exceeds my mortgage balance, on some days I think I should just pay it off and start investing the monthly payment of about $3,500 (includes tax/insurance escrow) in a new account. If you decide to pay it off, you do realize that you might not want to invest the full $...
by CppCoder
Sun Aug 26, 2018 2:34 pm
Forum: Personal Consumer Issues
Topic: Best ultra thin pocket knife?
Replies: 54
Views: 3682

Re: Best ultra thin pocket knife?

I carry a Victorinox cadet if I'm wearing slacks (Pioneer X in jeans...love having the scissors). I agree that it is a pretty soft steel, but it sharpens easily, takes a good edge, and is slight in the pocket. I don't own one, but I've read good things about the Spyderco Delica as a small, thin dail...
by CppCoder
Sun Aug 26, 2018 2:26 pm
Forum: Personal Consumer Issues
Topic: Ladies: bra shopping question
Replies: 63
Views: 8906

Re: Ladies: bra shopping question

Not my area of expertise, but my wife swears by Wacoal.
by CppCoder
Sun Aug 26, 2018 10:23 am
Forum: Personal Finance (Not Investing)
Topic: How do you calculate net worth with pensions?
Replies: 105
Views: 6848

Re: How do you calculate net worth with pensions?

Everything ends when you die. A pension is not an asset. It does not survive my death (and the death of my spouse) and is not considered when my estate is taxed. That may be true for your pension, but that is not true of all pensions. My pension has options such as 5, 10, 20 year certain. My spouse...
by CppCoder
Sun Aug 26, 2018 7:42 am
Forum: Personal Finance (Not Investing)
Topic: How do you calculate net worth with pensions?
Replies: 105
Views: 6848

Re: How do you calculate net worth with pensions?

I think whether or not one wants to consider a pension as part of net worth is debatable. However, one can define the lump sum value of the pension pretty easily as the minimum standard is defined by the Pension Protection Act of 2006. Essentially, it's the actuarial present value of the annuity str...
by CppCoder
Tue Aug 21, 2018 7:09 pm
Forum: Personal Consumer Issues
Topic: Maui in 2 days - August 23- cancel trip?
Replies: 12
Views: 1755

Re: Maui in 2 days - August 23- cancel trip?

If you are indeed insured, then cancel. I've been through two hurricanes (Ike and Harvey). The hurricane itself isn't so bad (I wouldn't worry that if you went there and it hit that you'd die), but the aftermath is miserable. There will be debris everywhere, no one will have power, etc. At least wit...
by CppCoder
Fri Aug 17, 2018 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Continue flood insurance after mortgage paid off?
Replies: 15
Views: 1151

Re: Continue flood insurance after mortgage paid off?

mouses wrote:
Fri Aug 17, 2018 7:56 pm
Update after reading previous post: add in subsistence, so three factors in favor of flooding.
Subsidence?
by CppCoder
Thu Aug 16, 2018 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 47
Views: 4224

Re: High tax bracket - Go 100% Roth in tax advantaged?

For high income earners with high savings rates, I like Roth. First, it essentially opens up more tax deferred space as 18.5k post tax is "bigger" than 18.5 pre tax. Second, when you're already saving so much money, unless you drastically change your habits in retirement, you won't spend it in retir...
by CppCoder
Thu Aug 16, 2018 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: Starting a 529 question
Replies: 2
Views: 358

Re: Starting a 529 question

There are pros and cons to any investment. You can read extensively about opinions on this forum about 529s with the search button, and the best place I've found to do individual 529 research is https://www.savingforcollege.com That said, in my opinion, high income/high net worth people (defined in ...