Search found 105 matches

by bada bing
Mon Oct 14, 2019 12:25 am
Forum: Personal Investments
Topic: 401k w Megabackdoor 56k what part of first 19k should be Roth
Replies: 5
Views: 740

Re: 401k w Megabackdoor 56k what part of first 19k should be Roth

The missing info to make the determination is: what will your tax rates be when the 401K qualified contributions will be withdrawn ? Of course, no one knows with any certainty what their tax rates will be 25 years out, so you have to use whatever crystal ball you think has some chance of working bet...
by bada bing
Sun Sep 22, 2019 11:07 pm
Forum: Personal Investments
Topic: retiring abroad with savings worth 200k...
Replies: 101
Views: 15743

Re: retiring abroad with savings worth 200k...

Just an aside, a work peer had been living in PV. He is married to a Mexican national, with 2 USA born school age kids. His income is ~$200K. They left PV about 4 years ago to move back to the states and I get the impression they don't miss PV all that much.
by bada bing
Mon Aug 26, 2019 6:52 am
Forum: Personal Investments
Topic: Plan for mid-year job change (FICA, 401k, ROTH, Pension, Health Insurance)
Replies: 23
Views: 1463

Re: Plan for mid-year job change (FICA, 401k, ROTH, Pension, Health Insurance)

2: Check into the new company's 401K plan to see if it allows non-Roth after-tax contributions. If it does, check to see if the company matches on non-Roth after-tax contributions. If so, you can continue making the contributions as after-tax and get the company match. That is also the basis (along ...
by bada bing
Wed Aug 21, 2019 1:01 am
Forum: Personal Investments
Topic: Anyone else more aggressive in retirement than required?
Replies: 52
Views: 4684

Re: Anyone else more aggressive in retirement than required?

There can be different perspectives on the same numbers. I retire next year at 60 and my current simple allocation is 60/40. I tend to look at it from a bucket perspective though. I have enough in intermediate term fixed income (the 40% of my current 60/40) to pay all anticipated living expenses fro...
by bada bing
Wed Aug 21, 2019 12:50 am
Forum: Personal Investments
Topic: Safe retirement income now
Replies: 41
Views: 6886

Re: Safe retirement income now

The OP had a simple question of how to transform a 400k windfall into 1200/month income in a safe way....SPIA will do that, for life, for both involved, inflation adjusted. Depending on their current age, there might be something left over from the windfall, TBD One simple observation about purchas...
by bada bing
Tue Aug 20, 2019 12:35 am
Forum: Personal Consumer Issues
Topic: Anyonw driving Uber for fun and pocket money in retirement?
Replies: 111
Views: 12433

Re: Anyonw driving Uber for fun and pocket money in retirement?

I've never been in a position to consider Uber driving, but I take Uber to/from the airport for frequent work trips. I live in a suburb outside of Tucson. The driver from home to the airport (25 mile ride) is invariably a retired person who lives in my general area. They turn the app on at home and ...
by bada bing
Mon Aug 19, 2019 10:39 pm
Forum: Personal Investments
Topic: How much does your employer 401k plan charge?
Replies: 43
Views: 2889

Re: How much does your employer 401k plan charge?

I work for a mega-corp (50K employees world wide). 401K has zero administrative fees. All the investment options are indexed investment trusts (not mutual funds) and have ERs between .005% and .02%. A sparse but adequate list of investment options. Fidelity is the plan administrator. I also have a s...
by bada bing
Fri Aug 16, 2019 11:55 pm
Forum: Personal Finance (Not Investing)
Topic: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?
Replies: 247
Views: 7602

Re: Does anyone here have no credit cards? How is that working out for you? Do you have any trouble without them?

It is pretty well known that credit card companies classify their customers based on their spending/repayment behaviors. They have two different business models based on two different categories: transactors and revolvers . Both are profitable businesses for credit card companies, but they design di...
by bada bing
Sun Aug 04, 2019 6:18 am
Forum: Personal Finance (Not Investing)
Topic: Only 33 years work history / Social Security:
Replies: 23
Views: 5530

Re: Only 33 years work history / Social Security:

The reason the extra 2 years don't add too much is because the benefit computation is curved. You get a lot of increase in your benefit early, when it's small. As the benefit increases, it increases slower and slower. Unless you earned <10,000 during each of those 33 years, you have reached the par...
by bada bing
Wed Jul 31, 2019 1:32 am
Forum: Personal Consumer Issues
Topic: What's your Uber passenger rating?
Replies: 118
Views: 7419

Re: What's your Uber passenger rating?

Got me curious so I pulled up the app. 5.0 over ~300 trips. I only use Uber to/from the airport. I fly often on work trips, always riding mid-morning or midday. Always by myself with a couple small bags. The trips are $35 to $50 in length. I've never had a bad Uber trip, just a few that obviously we...
by bada bing
Sat Jul 27, 2019 5:19 am
Forum: Personal Finance (Not Investing)
Topic: How much to save?
Replies: 53
Views: 5211

Re: How much to save?

Increasing your retirement savings percentage of gross salary is a double whammy as far as accelerating your progress to retirement. Each additional dollar saved is also a dollar reduction in current budget spending. Your nestegg grows faster and the budget it will fund in the future is reduced. htt...
by bada bing
Thu Jul 18, 2019 1:34 am
Forum: Personal Investments
Topic: How exactly does maxing a 401k work when you're approaching the limit line?
Replies: 27
Views: 2358

Re: How exactly does maxing a 401k work when you're approaching the limit line?

Plans vary. My mega-corp employer's plan is at Fidelity also. They don't even have an election, if you set your payroll deduction percentage high enough to run past the annual qualified limit ($19K + $6K catch up if over 50), my plan just shifts to after-tax and keeps on chugging without even a noti...
by bada bing
Mon Jun 10, 2019 6:34 am
Forum: Personal Finance (Not Investing)
Topic: In-Plan Roth 401k Conversion?
Replies: 8
Views: 1039

Re: In-Plan Roth 401k Conversion?

My mega-corp employers plan allows in-plan conversion, but I've never used it. I do an in-plan roll over to a Roth IRA instead. Either way accomplishes a "Mega Backdoor Roth", but there is no downside to rolling the money into a Roth IRA. My 401K plan has good investment options with very low costs ...
by bada bing
Sun Jun 09, 2019 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Social Security deductions after maxing out Social Security benefit?
Replies: 23
Views: 2595

Re: Social Security deductions after maxing out Social Security benefit?

Welcome to the club. I will reach 35 years capped contributions this year with another 9 years of earnings that were taxed and excluded from my "top 35". :annoyed It is a common misconception that SS is an "earned entitlement". If you check the fine print you will find that technically you don't own...
by bada bing
Mon May 27, 2019 10:46 pm
Forum: US Chapters
Topic: Roll Call for the Retirement Class of 2020!
Replies: 106
Views: 14079

Re: Roll Call for the Retirement Class of 2020!

Dec 1, 2020 will be my last day at work. Accrued vacation will carry me on the books as an employee until first week of Jan. 2021, but I'll be on a cruise ship somewhere around South America on the day I officially "retire". Be splitting the years between Alaska (summers) and Arizona (winters) with ...
by bada bing
Fri May 24, 2019 1:25 am
Forum: Personal Investments
Topic: Best Solo 401k Brokerage for Three Fund Portfolio
Replies: 40
Views: 3036

Re: Best Solo 401k Brokerage for Three Fund Portfolio

I went through a similar search 5 years ago when I opened a Solo401K. At the time I had other accounts opened at Fidelity, Schwab, TdAmeritrade and Vanguard, so I limited my investigation to them. A couple opinion comments: 1. I wouldn't prioritize "three fund" friendliness very high, or at all. The...
by bada bing
Tue May 07, 2019 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Lost out on 401k match for over-contributing
Replies: 49
Views: 5951

Re: Lost out on 401k match for over-contributing

Once you hit the IRS total annual limit ($56k in 2019), do all the contributions (employee contribution and employer match) stop for the rest of the year automatically? Or does it depend on the plan? It depends on the plan. Last year I accidentally discovered a feature of my mega-corp employer's pl...
by bada bing
Fri May 03, 2019 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: More MBDR Questions [mega backdoor Roth]
Replies: 13
Views: 774

Re: More MBDR Questions [mega backdoor Roth]

1. Yes, if that is where you direct them. The common choices are: roll into a tIRA, roll into a Roth IRA and pay tax on the conversion, roll into tIRA and then reroll back into 401K to facilitate regular backdoor Roth. 2.The rush is because the sooner the aftertax money is in the Roth IRA, the soone...
by bada bing
Sat Mar 16, 2019 4:47 am
Forum: Personal Finance (Not Investing)
Topic: Retiring- pension is 2x annual expense. Roth conversions/ss advice.
Replies: 39
Views: 4844

Re: Retiring- pension is 2x annual expense. Roth conversions/ss advice.

I don't have anything to offer on withdrawal planning. just an observation on their numbers. they are in an enviable position, but the numbers have a bit of a disconnect that might warrant checking. The anticipated $38k each in SS indicates a nearly max'ed 35 year FICA record ($130k each in 2019 dol...
by bada bing
Tue Feb 19, 2019 9:04 pm
Forum: Personal Investments
Topic: Eliminate my emergency fund?
Replies: 90
Views: 7822

Re: Eliminate my emergency fund?

I'm of similar age, similar assets. I keep ~$2K in cash at home and one month's expense float in checking. Everything else is at brokerage (Schwab), invested 60/40 in an indexed 3 fund. I haven't found a need for a dedicated "Emergency fund" for the last 30 years. I have a few credit cards (zero bal...
by bada bing
Sat Feb 16, 2019 4:54 pm
Forum: Personal Investments
Topic: any advantage to rolling pension into 401k?
Replies: 4
Views: 463

Re: any advantage to rolling pension into 401k?

Your pension should have a required annual audit that reports the funding percentage. If the funding percentage falls below 80% there will be legal requirements to suspend full lump sum options, but in most cases there will be a warning period allowing full lump sum options for a few months before t...
by bada bing
Sat Feb 02, 2019 4:52 pm
Forum: Investing - Theory, News & General
Topic: The most important driver of retirement portfolio success (having enough nestegg at retirement)
Replies: 52
Views: 6033

Re: The most important driver of retirement portfolio success (having enough nestegg at retirement)

Savings rate, yes. But also savings AMOUNT. A part-time waitress earning $10,000/year saves 10% or 1k per year. After 40 years at 5% annual returns she will have $127K saved. A physician earning $200,000/year saves 10% or 20k per year. After 40 years at 5% annual returns she will have $2.5 million ...
by bada bing
Sat Jan 05, 2019 2:45 am
Forum: Personal Finance (Not Investing)
Topic: ? about Mega-backdoor limits and company match
Replies: 3
Views: 689

? about Mega-backdoor limits and company match

I have a question about the overall contribution limits for the "Mega-backdoor". In 2018, for the first time, I ran over the limit on the last paycheck of the year. Fidelity diverted the company match from the 401K to a new account called a Excess Benefits Plan. Investigating this plan, it seems tha...
by bada bing
Wed Jan 02, 2019 1:25 am
Forum: Personal Finance (Not Investing)
Topic: Side Hustle? Passive Income?
Replies: 71
Views: 10098

Re: Side Hustle? Passive Income?

I commercial fish in Alaska in the summer, using my vacation time. It is a good side hustle, but would be hard for an inexperienced person to pick up. The main stumbling block is the cost of buying transferable fishing rights. I have a limited entry salmon permit and halibut & black cod Individual f...
by bada bing
Tue Jan 01, 2019 4:36 pm
Forum: Investing - Theory, News & General
Topic: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?
Replies: 160
Views: 9802

Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Start of each new year is a rather abrupt financial transition. FICA starts again, 401K contributions ramp up. I generally deposit the money for my backdoor Roth in the first couple banking days of the year, but it usually is later in Jan before it gets converted to Roth and then invested. Kudos to ...
by bada bing
Mon Dec 31, 2018 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Benefits Plan ???
Replies: 1
Views: 206

Excess Benefits Plan ???

I was looking at my Fidelity 401K webpage for year end and a new account has appeared. I now have a "Excess Benefits Plan" with ~$407 in it, as of 12-28-2018. I am guessing this is a screw up by either me or Fidelity. I try to get close to max'ing out my mega- backdoor Roth every year (for the last ...
by bada bing
Mon Dec 24, 2018 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Unable to do Regular or Backdoor Roths
Replies: 18
Views: 1341

Re: Unable to do Regular or Backdoor Roths

As you investigate options, remember that timing can be staggered. You can make a 2018 contribution up until April 15, 2019. Also remember that what matters for pro-rata calculations is the balance of traditional pre-tax money on Dec 31 of the year the conversion is made, not the year the contributi...
by bada bing
Sun Dec 02, 2018 5:29 pm
Forum: Personal Consumer Issues
Topic: Best values at Costco? Honestly, a little disappointed...
Replies: 188
Views: 23089

Re: Best values at Costco? Honestly, a little disappointed...

I'm a Costco fan. A couple reasons why that haven't been mentioned yet: Costco pays a living wage, with good job security. Because of that, the help there seems to have a better attitude and be a bit more proficient than typical in a discount supermarket. Most Kirkland brand products are a noticeabl...
by bada bing
Thu Nov 29, 2018 7:10 am
Forum: Personal Investments
Topic: 401K vs Roth 401K
Replies: 20
Views: 3002

Re: 401K vs Roth 401K

The decision to move 401-k contributions to Roth 401-k should be taken only if you believe that in your retirement, the combination of social security + withdrawal from the traditional 401-k / IRA accounts would completely fill out the lower tax tiers than your current marginal tax bracket. Current...
by bada bing
Wed Nov 28, 2018 5:59 pm
Forum: Investing - Theory, News & General
Topic: Do Fidelity Offices/Advisors Add Value?
Replies: 88
Views: 7187

Re: Do Fidelity Offices/Advisors Add Value?

I have accounts at Fidelity by virtue of thats where my mega-corp has our pensions and 401K. I've never been in a Fidelity B&M though. I have gotten exceptional service from Fidelity for any issues I've had. I dropped my Vanguard account 5 years ago because they didn't really pass muster in the serv...
by bada bing
Wed Nov 28, 2018 5:34 pm
Forum: Investing - Theory, News & General
Topic: Does 100% stocks make sense for very high net worth individuals
Replies: 126
Views: 14196

Re: Does 100% stocks make sense for very high net worth individuals

I tend to buy into the efficient frontier. You get less return for the risk assumed for the last 10% allocation bump to a 100% equity portfolio. I wouldn't go above 90% under any situation. Having $30M, or whatever level we're talking about, wouldn't incentivize me into increasing equity allocation ...
by bada bing
Tue Nov 27, 2018 5:53 am
Forum: Personal Finance (Not Investing)
Topic: paying off all but 1 dollar of CC
Replies: 70
Views: 8837

Re: paying off all but 1 dollar of CC

There is no benefit to paying credit card interest, ever. Anyone who states so is uninformed. As stated upthread, reported balance and interest bearing balance are not the same thing on any but the most bottom-feeder type of credit cards. Learn the difference between reported and interest accruing. ...
by bada bing
Sun Nov 25, 2018 12:46 pm
Forum: Investing - Theory, News & General
Topic: You’re Not As Rich As You Think You Are, And That’s Okay
Replies: 20
Views: 6294

Re: You’re Not As Rich As You Think You Are, And That’s Okay

The more I save, the more I realize how little I have. I felt much better about money when I had almost none. This is me. The subjective shifting over time of how much the money I have is worth is incredible. I have more nominally now than I would have ever predicted 20 years ago, and yet it is sub...
by bada bing
Mon Nov 19, 2018 1:27 am
Forum: Personal Investments
Topic: 401(k) alternatives
Replies: 9
Views: 930

Re: 401(k) alternatives

If you have HDHP, you are eligible for a HSA. In many situations a HSA is
the first destination for retirement savings, before a tIRA or Roth IRA.

Fidelity has just started no cost individual HSA account availability
by bada bing
Fri Nov 16, 2018 12:12 am
Forum: Personal Investments
Topic: Why You Should Consider a Backdoor Roth IRA
Replies: 9
Views: 1822

Re: Why You Should Consider a Backdoor Roth IRA

I quit reading the interview when I got to this part, where they both agree on something that is just flat wrong: “Benz: Let's talk through the logistics. The idea is that I fund a traditional IRA and there's some confusion about who can fund a traditional IRA. Anyone can fund a traditional IRA, ri...
by bada bing
Tue Nov 13, 2018 8:42 am
Forum: Personal Investments
Topic: Social Security Question
Replies: 8
Views: 1062

Re: Social Security Question

I am 62 and retired with a government pension (FERS) I have read that if I wait until I’m 70 to take my Social Security I will earn Delayed Retirement Credits of 8 percent a year. But a friend of mine said that I have to be still working and paying into Social Security to earn 8 percent. Is he righ...
by bada bing
Mon Nov 05, 2018 1:27 am
Forum: Personal Consumer Issues
Topic: Changing jobs
Replies: 4
Views: 759

Re: Changing jobs

Last time I changed employers, I took vacation to attend new job orientation and technically was an employee of both employers for a month. My supervisor was aware that I was likely to give notice 2 weeks into vacation, which I did. Advantage to doing it was it maintained my slot in case the new job...
by bada bing
Sat Nov 03, 2018 11:31 am
Forum: Personal Consumer Issues
Topic: Engineering school
Replies: 83
Views: 7998

Re: Engineering school

Rose-Hulman Institute of Technology is an absolutely fantastic school. The biggest downsides are expenses and a heavy workload, but you'll get a best-in-class education there. Oh, also, it's an engineering-only school and has the gender ratio you'd expect (roughly 3 men for every woman), so if you'...
by bada bing
Fri Nov 02, 2018 2:26 am
Forum: Personal Finance (Not Investing)
Topic: help this RN negotiate job change
Replies: 28
Views: 3167

Re: help this RN negotiate job change

I'm not a nurse, or involved in the healthcare field. I do work in a technically credentialed field with shift differentials though and I have negotiated a few employer changes / new compensation packages. One thing I've found is that it is much easier to squeeze a bonus or one time allowance out of...
by bada bing
Thu Nov 01, 2018 3:44 pm
Forum: Personal Investments
Topic: Fully maxed out
Replies: 70
Views: 8808

Re: Fully maxed out

I'm single, but with a partner. Our finances are mostly separate, just joint ownership of a house. I make $200K, she makes ~$150K. I max out the list, - mega-backdoor + backdoor + HSA with catch-ups. No 529. She does about $40K into 401K including her match. She uses a HSA, but the money just revolv...
by bada bing
Tue Oct 30, 2018 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Should I co-sign for relative?
Replies: 103
Views: 5726

Re: Should I co-sign for relative?

I don't have any kids, but I have 7 young adult nieces and nephews. For all seven of them, I jump started their credit scores. I sponsored them into Navy Federal Credit Union (family military history required for membership) and I seeded a "shared secured loan". I also put each of them as authorized...
by bada bing
Tue Oct 30, 2018 4:38 am
Forum: Personal Investments
Topic: Mega Backdoor: Cap on Distribution to Roth IRA?
Replies: 12
Views: 1101

Re: Mega Backdoor: Cap on Distribution to Roth IRA?

A few things to check/consider I have read that some plans allow you to set up scheduled automated conversions. Mine does not and I have to initiate each conversion. If you have to initiate each withdrawal, then what matters is if any gains have accrued. When the market is going through a flat or de...
by bada bing
Sun Oct 21, 2018 12:27 am
Forum: Investing - Theory, News & General
Topic: Fidelity and Blackrock employees sue over 401k plans
Replies: 10
Views: 1934

Re: Fidelity and Blackrock employees sue over 401k plans

A few years ago the 401K plan at my mega-corp employer had everything but index funds and target date funds removed from the plan. The plan is hosted by Fidelity and the current fund offerings are ultra low ER investment trusts rather than in-house mutual funds. Prior to the purge, there was a large...
by bada bing
Fri Oct 12, 2018 2:15 am
Forum: Personal Investments
Topic: After Tax 401k Contri's vs Trad 401k vs Roth 401k
Replies: 23
Views: 1058

Re: After Tax 401k Contri's vs Trad 401k vs Roth 401k

My employer's 401K is at Fidelity as well. It allows after-tax contributions, in-service distributions and in-plan recharacterizations. I also didn't know this was available until 4 years ago and discovered it on my own by reading of it and then calling Fidelity and asking. If you call fidelity, the...
by bada bing
Sat Sep 29, 2018 5:20 pm
Forum: Personal Investments
Topic: Let's talk pensions
Replies: 18
Views: 3015

Re: Let's talk pensions

I work for a private employer that has a very nearly identical pension plan. I have 10 years in with the employer and ~$200K cash balance accrued. Prior to working for current employer, I vested in 3 other private pensions as I was bounced around by takeovers, mergers and plant closure. The other 3 ...
by bada bing
Sat Sep 29, 2018 7:05 am
Forum: Investing - Theory, News & General
Topic: Income Limits on IRA, 401k, and HSA Max Out?
Replies: 11
Views: 1726

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

Congrats on the new job. With a few caveats, you should be able to contribute the limits you posted - and perhaps more. The IRA is pretty simple. You can't get a deduction for the contribution and you make too much money to contribute directly to a Roth. As you mentioned, the backdoor Roth is a simp...
by bada bing
Wed Sep 19, 2018 4:29 am
Forum: Investing - Theory, News & General
Topic: 401k: Why not only after-tax?
Replies: 37
Views: 4528

Re: 401k: Why not only after-tax?

I believe I understand your question. In a limited circumstance it would be a reasonable choice. If you have determined: You want all of your contributions to end up as Roth (forego the deduction now) and You want all of your contributions rolled into a Roth IRA (outside of your 401k) and You still ...
by bada bing
Sat Sep 15, 2018 8:35 am
Forum: Personal Investments
Topic: How much in a brokerage account?
Replies: 7
Views: 948

Re: How much in a brokerage account?

Major brokerages carry private insurance above and beyond SIPC coverage. For instance, Schwab has: Additional protection through Lloyd's of London and other London insurers Additional brokerage insurance—in addition to SIPC protection—is provided to Charles Schwab & Co., Inc. accounts through underw...
by bada bing
Thu Sep 06, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should I keep my financial advisor
Replies: 131
Views: 8749

Re: Should I keep my financial advisor

I'm definitely in the minority here, but I would say your FA might be worth it to you. It depends a lot on your personality and temperament. Not so much (or even any) on the technical side of just investing, but maybe because they will change you impulses at critical junctions. The offloading of wor...
by bada bing
Mon Sep 03, 2018 4:22 pm
Forum: Personal Investments
Topic: Advice for an 87-year-old?
Replies: 36
Views: 2434

Re: Advice for an 87-year-old?

My mom is 86 and in a similar situation. She still drives and manages on her own but has some medical issues and needs a little help with paperwork issues like money management. She has about $350K in savings and most of her day to day expenses are covered by SS & pension. Her medical is medicare + ...