Search found 635 matches

by Lou354
Wed Dec 04, 2019 3:38 pm
Forum: Investing - Theory, News & General
Topic: Should I liquidate my individual stocks?
Replies: 37
Views: 1861

Re: Should I liquidate my individual stocks?

I think it makes sense to liquidate and reinvest. Not enough information has been provided to determine whether it makes tax sense to spread out the liquidation over several years.
by Lou354
Tue Dec 03, 2019 11:17 am
Forum: Personal Investments
Topic: investing in mid cap index
Replies: 8
Views: 444

Re: investing in mid cap index

Right but wouldn't the large cap index "buy" the stock at the higher price once it reaches large cap status? Yes, at the same price it was sold by the mid-cap fund. So you neither gain nor lose from that transaction. Just moving the stock from your right pocket to your left pocket. Note that in the...
by Lou354
Tue Dec 03, 2019 10:54 am
Forum: Personal Investments
Topic: investing in mid cap index
Replies: 8
Views: 444

Re: investing in mid cap index

When a company moves from mid-cap to large-cap you'll still own its stock in the large-cap fund. You wrote that you want to allocate more to small/mid-cap, not that you want to eliminate large-cap.
by Lou354
Sun Dec 01, 2019 11:37 am
Forum: Personal Investments
Topic: Ratio of US vs Munis
Replies: 4
Views: 269

Re: Ratio of US vs Munis

I don’t think there’s a rigorous, correct answer to the question you asked. I wouldn’t put more than 25% of my fixed income allocation in the bonds of a single state, or more than 33% in tax-free munis of all states taken together if I still had tax-advantaged space for other kinds of bonds.
by Lou354
Tue Nov 26, 2019 9:13 pm
Forum: Personal Investments
Topic: Can someone help me purchase my first mutual fund?
Replies: 117
Views: 6171

Re: Can someone help me purchase my first mutual fund?

Some 401k plans offer a Roth option, where you make contributions with after-tax money and the growth is tax-free. Does your 401k plan have a Roth option? For money that you decide to keep in a savings account, you can get around 2% interest in an online high yield savings account, which is a lot be...
by Lou354
Tue Nov 19, 2019 4:20 pm
Forum: Personal Investments
Topic: Now That I have Won
Replies: 24
Views: 6215

Re: Now That I have Won

I think I would automate the distribution of RMDs as much as possible.
by Lou354
Mon Nov 18, 2019 3:51 pm
Forum: Personal Investments
Topic: Investing $3500 in Vanguard
Replies: 7
Views: 730

Re: Investing $3500 in Vanguard

The $3000 minimum doesn't apply to the ETF equivalent, whose ticker is VTI.
by Lou354
Wed Nov 13, 2019 4:12 pm
Forum: Personal Consumer Issues
Topic: Productizing an idea
Replies: 28
Views: 1616

Re: Productizing an idea

File patent applications before describing or showing drawings of the gadgets to anyone.
by Lou354
Wed Nov 13, 2019 8:20 am
Forum: Personal Investments
Topic: How to combine finances with your spouse? Recently married/early30s
Replies: 72
Views: 5173

Re: How to combine finances with your spouse? Recently married/early30s

If the student loan debt is his and money you both earn during the marriage is jointly owned, how will ‘he’ ever get funds that are ‘his’ with which to repay ‘you’? It seems inescapable that either the repayment will come from both of you, which would make the student loan debt both of yours. Or you...
by Lou354
Sun Nov 10, 2019 5:53 pm
Forum: Investing - Theory, News & General
Topic: If you were forced to pick an alternative asset...
Replies: 107
Views: 7021

Re: If you were forced to pick an alternative asset...

bgf wrote:
Sat Nov 09, 2019 10:28 pm
Carpenterant wrote:
Sat Nov 09, 2019 10:23 pm
I really think the illegal drug market offers everything within your parameters. It does expose you to some risk.
is there an award for post of the day?
If there is, I would think that suggestions of lawbreaking would be ineligible. :wink:
by Lou354
Sun Oct 27, 2019 8:19 pm
Forum: Personal Investments
Topic: Frontload IRA, then pay off loan or tackle both in parallel?
Replies: 10
Views: 580

Re: Frontload IRA, then pay off loan or tackle both in parallel?

Seems like six of one, half dozen of the other. I’m assuming you’ll at least make the minimum monthly payment on the student loan in any event.
by Lou354
Fri Oct 25, 2019 3:22 pm
Forum: Investing - Theory, News & General
Topic: Stock market index investing - problem of induction?
Replies: 41
Views: 3745

Re: Stock market index investing - problem of induction?

I can't provide a syllogism demonstrating you'll be rewarded by investing in the US stock market. That's a reason to diversify, e.g. internationally and bonds.

No disrespect to Mr Hume, I live my life on the assumption that the sun will rise tomorrow morning. How about you?
by Lou354
Wed Oct 23, 2019 7:04 am
Forum: Personal Investments
Topic: Another inexperienced investor, decent income
Replies: 28
Views: 3215

Re: Another inexperienced investor, decent income

There are socially conscious mutual funds and ETFs. You may have to do a little investigation to find one that lines up closely with your values. After that it shouldn’t take much of your free time at all.
by Lou354
Tue Oct 22, 2019 8:41 pm
Forum: Personal Investments
Topic: How are we doing? Where to go from here? Funds are too complicated
Replies: 22
Views: 2240

Re: How are we doing? Where to go from here? Funds are too complicated

You write, “Only debt is 529 payments. . . .” How is that a debt?

You could cut down on the number of funds in your SEP IRA without incurring capital gains tax. That would be a start.
by Lou354
Sun Oct 13, 2019 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Disadvantages to 401k Rollover into an IRA
Replies: 12
Views: 1513

Re: Disadvantages to 401k Rollover into an IRA

Distributions from an IRA aren’t eligible for exclusion from Maryland state income taxes, distributions from a 401k are. This could be a reason to keep some money in a 401k, at least if you’ll be withdrawing or doing Roth conversions before you start receiving Social Security benefits. https://taxes...
by Lou354
Thu Oct 10, 2019 11:36 pm
Forum: Personal Investments
Topic: Please Critique My Financial State!
Replies: 7
Views: 1632

Re: Please Critique My Financial State!

It would be helpful if you expressed the value of each fund as a percentage of your and wife’s entire combined investment portfolio rather than as a dollar value. And you should come up with your desired target percentages for US equities, international equities, and bonds/fixed income. Just eyeball...
by Lou354
Thu Oct 10, 2019 10:00 am
Forum: Personal Investments
Topic: New to investing and Bogleheads
Replies: 8
Views: 700

Re: New to investing and Bogleheads

The value of investments fluctuates a lot. You're investing for the long term in your 401k accounts. If you want to be a successful investor you're going to have to learn to ignore or become comfortable with short term fluctuations. By the way, five years is short term. I suggest you educate yoursel...
by Lou354
Thu Sep 19, 2019 3:00 pm
Forum: Personal Investments
Topic: Is it unwise for me to do backdoor Roth (high tax bracket and advancing age)?
Replies: 5
Views: 567

Re: Is it unwise for me to do backdoor Roth (high tax bracket and advancing age)?

It probably doesn't make sense for you to do backdoor Roth conversions unless you can first roll your traditional IRA into your 401k. Read the wiki on Backdoor Roth, paying particular attention to discussion of the pro-rata rule.
https://www.bogleheads.org/wiki/Backdoor_Roth
by Lou354
Mon Sep 09, 2019 8:24 pm
Forum: Personal Investments
Topic: Rebalancing/Monthly Investing in Three-fund
Replies: 6
Views: 704

Re: Rebalancing/Monthly Investing in Three-fund

I do the latter. I think it’s plenty close enough and it would be too much work to calculate my asset allocation every paycheck.
by Lou354
Fri Sep 06, 2019 3:12 pm
Forum: Personal Consumer Issues
Topic: Mensa membership
Replies: 90
Views: 7482

Re: Mensa membership

Jack FFR1846 wrote:
Fri Sep 06, 2019 11:46 am
I would not think that its very smart to join.
I see what you did there. :wink:
by Lou354
Tue Aug 27, 2019 9:40 pm
Forum: Personal Investments
Topic: Roth Conversions into next tax bracket
Replies: 13
Views: 1017

Re: Roth Conversions into next tax bracket

It depends. If you don’t do Roth conversions now, what tax bracket will you be in when you start taking RMDs at age 70.5? If you don’t do Roth conversions now, then when you or spouse dies, what tax bracket the survivor be in? You can’t know the answers to these questions for certain, but you can ma...
by Lou354
Sun Aug 25, 2019 6:24 pm
Forum: Personal Investments
Topic: Newly rolled over 401K
Replies: 4
Views: 363

Re: Newly rolled over 401K

If you want to use dividend funds you might consider splitting the stock portion of your allocation between a dividend growth fund (VDIGX or VDADX) and a high dividend yield fund (VHYAX). Or you could invest in a total market fund and make your own ‘dividends’ by selling some when you need or want t...
by Lou354
Wed Aug 21, 2019 9:36 am
Forum: Personal Consumer Issues
Topic: Best undergrad majors ahead of Law school?
Replies: 75
Views: 3931

Re: Best undergrad majors ahead of Law school?

The ability to write well is invaluable, whatever her major.
by Lou354
Mon Aug 19, 2019 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: 529 beneficiary change
Replies: 41
Views: 1823

Re: 529 beneficiary change

what happens if child 1 has 140,000 in her account, then I change the beneficiary to child 2? Is that 140000 a gift from child 1 to child 2? or is it a gift from me to child 2? ( seems illogical, since it was already gifted by me once, to child 1) If you're the account owner then the funds are stil...
by Lou354
Mon Aug 19, 2019 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: 529 beneficiary change
Replies: 41
Views: 1823

Re: 529 beneficiary change

what happens if child 1 has 140,000 in her account, then I change the beneficiary to child 2? Is that 140000 a gift from child 1 to child 2? or is it a gift from me to child 2? ( seems illogical, since it was already gifted by me once, to child 1) If you're the account owner then the funds are stil...
by Lou354
Fri Aug 16, 2019 1:35 pm
Forum: Non-US Investing
Topic: Why should I buy anything outside of the US market?
Replies: 28
Views: 2816

Re: Why should I buy anything outside of the US market?

I understand that you want to diversify and not miss other markets. But my question is then, why isn't the Boglehead recommendation even for US investors to buy and hold VT or VTI + VXUS? I understand what we agree with Jack Bogle's strategies, and he seems to be "ignoring" the rest of the world on...
by Lou354
Mon Aug 12, 2019 1:38 am
Forum: Personal Investments
Topic: 401K - stay with current fund?
Replies: 11
Views: 1031

Re: 401K - stay with current fund?

JRae wrote:
Mon Aug 12, 2019 1:29 am
Thank you, that is very helpful! Is it of any concern that there would be no small cap fund involved?
No concern because the Extended Market Fund includes mid-cap and small-cap.
by Lou354
Thu Aug 08, 2019 12:16 am
Forum: Personal Finance (Not Investing)
Topic: Pharma career change - bench to ?
Replies: 15
Views: 1998

Re: Pharma career change - bench to ?

Patent agent
by Lou354
Wed Aug 07, 2019 8:28 am
Forum: Personal Investments
Topic: Was VTSAX in my traditional IRA vs Roth a bad idea?
Replies: 12
Views: 1804

Re: Was VTSAX in my traditional IRA vs Roth a bad idea?

Olemiss540 wrote:
Thu Aug 01, 2019 6:37 pm
Consider putting all funds in both accounts into a Vanguard target retirement date fund of your choice and keep it simple. That's what I did!
This is excellent advice for OP.
by Lou354
Tue Aug 06, 2019 8:15 am
Forum: Personal Investments
Topic: Portfolio review -- early 40s
Replies: 10
Views: 1605

Re: Portfolio review -- early 40s

At your marginal tax rate, if you're going to hold bond funds in a taxable account maybe use tax-exempt bond funds.

If either of your 401k plans accepts incoming rollovers, you might consider doing that so you can make so-called backdoor Roth contributions without pro-rata rule complications.
by Lou354
Fri Aug 02, 2019 12:56 pm
Forum: Personal Investments
Topic: 401K to Trad IRA Rollover Allowed? Income limitation apply?
Replies: 6
Views: 343

Re: 401K to Trad IRA Rollover Allowed? Income limitation apply?

There is no income limit on rollovers to an IRA. Do a direct rollover to a tIRA. Then when you get a new job that offers a 401k plan that accepts incoming rollovers, you can rollover the tIRA into the new employer's 401k if it would be advantageous to do so. Or you could do a Roth conversion and pay...
by Lou354
Tue Jul 23, 2019 8:53 pm
Forum: Personal Investments
Topic: Three Fund Portfolio When You Only Have Taxable Funds To Invest?
Replies: 16
Views: 1708

Re: Three Fund Portfolio When You Only Have Taxable Funds To Invest?

keyfort wrote:
Tue Jul 23, 2019 8:39 pm
Is there much difference between a bond fund and CDs? I was thinking that there is over time a significant interest rate difference. . . .
CDs are FDIC-insured so will generally pay a lower interest rate, though sometimes you can find high-paying CDs. Your choice.
by Lou354
Tue Jul 23, 2019 8:38 pm
Forum: Personal Investments
Topic: Three Fund Portfolio When You Only Have Taxable Funds To Invest?
Replies: 16
Views: 1708

Re: Three Fund Portfolio When You Only Have Taxable Funds To Invest?

Asset allocation takes priority over asset location. I would invest the 20% in a taxable account in a bond fund, CDs or a high yield online savings account. You can reduce that over time as the solo 401K account balance grows.
by Lou354
Mon Jul 22, 2019 11:36 am
Forum: Personal Investments
Topic: Maxing out everything?
Replies: 38
Views: 2575

Re: Maxing out everything?

We max out I bonds. We're not buying EE bonds because the interest rate is very low and there's insufficient protection against a big jump in inflation and/or interest rates sometime over the next 20 years.
by Lou354
Mon Jul 22, 2019 7:09 am
Forum: Personal Investments
Topic: new windfall: investment questions
Replies: 22
Views: 4088

Re: new windfall: investment questions

Since you have earned income from your freelancing, you could look into opening a solo 401k or SEP-IRA and making contributions.
https://www.bogleheads.org/wiki/Solo_401(k)_plan
https://www.bogleheads.org/wiki/SEP
by Lou354
Sun Jul 21, 2019 10:15 pm
Forum: Personal Investments
Topic: Any downside to splitting portfolio?
Replies: 25
Views: 2014

Re: Any downside to splitting portfolio?

VBK - Vanguard Small-cap Growth ETF - ER 0.07 VMGRX - Vanguard Mid-cap Growth Fund - ER 0.36 VUG - Vanguard Growth ETF - ER 0.04 VQNPX - Vanguard Growth & Income Fund - ER 0.33 Any downside to doing this? You don’t say why you want to overweight growth funds. I suspect it’s because lately they’ve b...
by Lou354
Mon Jul 01, 2019 2:06 pm
Forum: Personal Consumer Issues
Topic: Toll was not charged to my EZ pass, anything I should do?
Replies: 10
Views: 1288

Re: Toll was not charged to my EZ pass, anything I should do?

On the Verrazano Bridge you pay a toll when crossing from Brooklyn to Staten Island (JFK to NJ), not when crossing from Staten Island to Brooklyn (NJ to JFK).
by Lou354
Tue Jun 04, 2019 7:15 am
Forum: Personal Investments
Topic: How do I invest 55k
Replies: 12
Views: 1446

Re: How do I invest 55k

Welcome to the forum Gene. Here’s a good place to start:
https://www.bogleheads.org/wiki/Getting_started
by Lou354
Fri May 31, 2019 11:24 am
Forum: Personal Investments
Topic: Timing the Market (for Roth Conversion)?
Replies: 14
Views: 1315

Re: Timing the Market (for Backdoor Roth)?

Your question is a little confusing, perhaps because of terminology. Not all conversions from traditional IRA to Roth IRA are considered ‘Backdoor Roth’. Usually the term refers to a scenario where you make a non—deductible contribution to a tIRA and then convert to a Roth IRA shortly thereafter. Th...
by Lou354
Sun May 26, 2019 10:19 pm
Forum: Personal Investments
Topic: Help me get into Target Date Funds
Replies: 10
Views: 1241

Re: Help me get into Target Date Funds

Lifestrategy Income Fund is only 20% stocks, so it won’t cause your overall asset allocation to deviate from 50:50 quite as much as the target date funds. If I were you I’d stick with bonds in the tax-deferred accounts for now. In retirement you can start spending down from the taxable accounts, whi...
by Lou354
Tue May 21, 2019 9:22 am
Forum: Personal Consumer Issues
Topic: Expensive front load washer/dryer worth it?
Replies: 53
Views: 3828

Re: Expensive front load washer/dryer worth it?

I like my front loading washing machine. Top loaders would become unbalanced during spin cycle and make a terrible racket and/or march across the floor. The front loader doesn’t. You do need to leave the door open between uses so it dries out, otherwise mildew will grow.
by Lou354
Fri May 17, 2019 7:14 am
Forum: Personal Finance (Not Investing)
Topic: tIRA => Roth IRA or 401(k), now or later?
Replies: 9
Views: 860

Re: Another tIRA => Roth IRA conversion thread

I would do option 2 and do more Backdoor Roth than you’re already doing via Mega Backdoor Roth and spouse‘s IRA.
by Lou354
Fri Apr 19, 2019 10:25 am
Forum: Non-US Investing
Topic: Doubt about asset allocation [UK]
Replies: 7
Views: 688

Re: Doubt about asset allocation [UK]

Country diversification Is a lot more important for equities than bonds. I recommend adding an ex-US or global equity fund. I don’t think it matters much whether your bond fund is global or limited to Europe. Is there any reason to not care much if the index bond is European or global? . . . . I'm ...
by Lou354
Fri Apr 19, 2019 2:02 am
Forum: Non-US Investing
Topic: Doubt about asset allocation [UK]
Replies: 7
Views: 688

Re: Doubt about asset allocation [UK]

Country diversification Is a lot more important for equities than bonds. I recommend adding an ex-US or global equity fund. I don’t think it matters much whether your bond fund is global or limited to Europe.
by Lou354
Thu Apr 18, 2019 10:23 am
Forum: Personal Investments
Topic: Locked into [American Funds] - best choices?
Replies: 14
Views: 973

Re: Locked into AF - best choices?

You can turn off automatic reinvestment of dividends. Invest them in the index fund(s) of your choosing.
by Lou354
Wed Apr 17, 2019 7:17 am
Forum: Personal Investments
Topic: confused opening ira and withdrawal at retirement
Replies: 14
Views: 913

Re: confused opening ira and withdrawal at retirement

An allocation of 90/10 or 85/15 in retirement is very aggressive. What’s appropriate for people with Warren Buffett kind of money may not be appropriate for folks like you and me.
by Lou354
Tue Apr 16, 2019 11:39 pm
Forum: Personal Investments
Topic: Ditching Edward Jones...but need some advice & guidance
Replies: 9
Views: 1492

Re: Ditching Edward Jones...but need some advice & guidance

My main question is with a single account. Can this be rolled over in kind with Vanguard or Fidelity? I have some stocks and mutual funds (a lot of the Franklin funds but a few outside the Jones family as well) that is about 77k in the single account. I"d prefer not to pay any capital gains taxes o...
by Lou354
Mon Apr 15, 2019 3:56 pm
Forum: Investing - Theory, News & General
Topic: Is seeking tax shelter always right?
Replies: 28
Views: 2936

Re: Is seeking tax shelter always right?

If your tax rate in retirement will be higher than now you may be overdoing it. Also taking funds from your taxable account for current living expenses is a taxable event that will cut into the tax savings you’re getting from some of the other things you’re doing.