Search found 5958 matches

by CyclingDuo
Thu Mar 28, 2024 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?
Replies: 24
Views: 1616

Re: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?

babyvinny wrote: Wed Mar 27, 2024 2:28 pmTheir solution is “ If you are required to include Form 7206 as a part of your tax return based on the information above, then you need to print and mail your return. Electronic filing will not be an option if the reject code persists.”

Please let me know if you have any suggestion. Thank you very much!
Fire up the printer and mail it in...
by CyclingDuo
Thu Mar 28, 2024 7:21 am
Forum: Personal Investments
Topic: Thoughts on Dave Ramsey's Investments
Replies: 10
Views: 750

Re: Thoughts on Dave Ramsey's Investments

Thoughts on DR's recommendation of the following investment strategy: 25% each of Growth, Growth & Income, Aggressive Growth and International. It's just yet another Lazy Portfolio - The Lazy Dave Portfolio , that interestingly enough has performed about the same as the S&P 500 over the past 30 years. There was a nice thread a while back with plenty of links that looked at the lazy Dave portfolio from Rob Berger's podcast, to Seeking Alpha articles, to what it would be in ETF form, etc... We even distilled it down to a Boglehead Lazy Portfolio of just two ETFs, 75% Total US Stock Market (VTI) and 25% Total International Stock Market (VXUS). https://www.bogleheads.org/forum/viewtopic.php?t=391896 CyclingDuo wrote: Rob Berger did com...
by CyclingDuo
Wed Mar 27, 2024 8:01 am
Forum: Personal Finance (Not Investing)
Topic: ETrade Morgan Stanley Forms 1099 to Expect for 2023
Replies: 12
Views: 2051

Re: ETrade Morgan Stanley Forms 1099 to Expect for 2023

I just called Etrade and spoke to someone and he said to combine amounts. It's just broke up into 2 time periods. I am not sure what you mean by “combine”. But you should treat them as separate tax forms from two different brokerages. The payer and accounts are different even though you did nothing to change brokerages. Different addresses, different EIN numbers as well. Treat them just like you would if you had intentionally transferred your assets from ETrade to Morgan Stanley. I agree with this post. This is what I did. I would not combine the numbers, because the Payor tax id is different. I also agree that the old Etrade 1099 has income through whatever date that it became Morgan Stanley Etrade and the M.S.Etrade 1099 is for income af...
by CyclingDuo
Wed Mar 27, 2024 12:34 am
Forum: Personal Investments
Topic: Your insights on our retirement prep?
Replies: 10
Views: 1441

Re: Your insights on our retirement prep?

1. Overall, how are we doing & what feedback do you have for us? Congrats on the amount you have socked away thus far in your workplace plans, and the use of the low-cost funds. You didn't list any college savings for the three children. Do you have a plan for funding their educations? 2. Is it reasonable to target retiring at age 55? I am not sure where to start regarding estimating post-retirement expenses. Lot of water to flow under the bridge between now and then, so be flexible with what life's journey throws at you regarding a target retirement age. A mortgage to pay off, college educations to pay for, wheels for the kids when they get to be driving age, a stock market that may or may not play along with your target, a current bo...
by CyclingDuo
Tue Mar 26, 2024 9:57 am
Forum: Personal Investments
Topic: New Member-Advice on current portfolio
Replies: 8
Views: 904

Re: New Member-Advice on current portfolio

First, read and follow the wiki on prioritizing investments. https://www.bogleheads.org/wiki/Priorit ... nvestments This should be your guide to investing your available cash. Establish an emergency fund to your satisfaction. Done! Contribute to an employer retirement plan (for example, 401(k) or 403b) enough to get the full employer match Done! Pay off high-interest debt (a guaranteed high return, the next best thing to free money). Done! Contribute to a Health Savings Account (HSA) if a high deductible health plan is appropriate for your needs We plan to do the HDHP ein the next cycle. We avoided it this year with out daughter being born no knowing what our expenses would look like with the hospital and my wife being off work for materni...
by CyclingDuo
Tue Mar 26, 2024 9:07 am
Forum: Personal Investments
Topic: QQQ Question
Replies: 49
Views: 2861

Re: QQQ Question

Indeed. Nasdaq can be extremely volatile. https://en.m.wikipedia.org/wiki/Dot-com_bubble It had a 78% drawdown from March 10, 2000 to October 9, 2002. From 5048 to 1114. I'm not saying we're going to have a repeat of that, but this is the sort of thing that can happen with the Nasdaq. I wasn't invested in it then, and I'm not invested in it now. Going with the OP's premise of investing $500 per month into Total US Stock Market, and contemplating something such as also periodic investing into QQQ... With technology advancing so quickly, and AI becoming such a main stream concept, would it be wise to dollar cost average into QQQ/QQQm every month? ...what if somebody had gotten the everybody knows about it bug in January of 2000 before the do...
by CyclingDuo
Mon Mar 25, 2024 4:23 pm
Forum: Personal Investments
Topic: New Member-Advice on current portfolio
Replies: 8
Views: 904

Re: New Member-Advice on current portfolio

Traditional tax deferred space will be taxed as ordinary income when withdrawn. Hence, the majority of us would recommend not taking up part of your Roth space with bonds, but leave it full scale equities during your accumulation years when AA is tilted more towards equities. Keep your bond allocation in the traditional tax-deferred space for now. If you did not have a good low cost, total bond fund in your traditional 401k space, an alternative could be to store it in your tax-free account. Thank you that clarifies well. Currently the 403B plan has a 23% Bond investment with most of that in the vanguard total bond market index. I had intended to leave that plan alone, and just do 90/10 asset allocation with my other investing funds. I und...
by CyclingDuo
Mon Mar 25, 2024 10:32 am
Forum: Personal Investments
Topic: New Member-Advice on current portfolio
Replies: 8
Views: 904

Re: New Member-Advice on current portfolio

We would advise to use the Roth IRA for equities to get the most bang for the buck rather than storing your bonds in there - especially at your young age. Keep your bond allocation within your tax deferred space for now, and if your overall AA is targeting 10% bond allocation, make sure to add all accounts together to land on that target. We would also consider your CD's in the non equity AA of your overall portfolio. So in this sense, you would suggest putting the US and International funds into the Roth as well? My understanding was that the Roth was the tax deferred space, and that was why it held the bonds. I think I'm missing something since you suggested storing equities in the Roth rather than the bonds, but then suggest storing the...
by CyclingDuo
Mon Mar 25, 2024 10:20 am
Forum: Personal Investments
Topic: Paying off 115K in Debt Using an IRA BDA - Should I Sell?
Replies: 14
Views: 911

Re: Paying off 115K in Debt Using an IRA BDA - Should I Sell?

Hello: I inherited an IRA BDA via Fidelity in August 2020 with an original value of $160,215. I made a withdrawal of $33,200 in December of 2022. Currently the account is at $178,534.00. It is split into the following funds: FRGRX (Fidelity Blue Chip Growth): 54% of the account - $96,581 FPURX (Fidelity Puritan): 21.66% of the account - $38,673 FGRIX (Fidelity Growth and Income): 17.89% of the account - $31,946 FOSFX (Fidelity Overseas): 6.34% of the account - $11,314 My other assets are $7,000 in a ROTH IRA and around $5,000 in a money market. My total estimated earnings for this 2024 will be around $30,000-$40,000. I am graduating from law school in May and have $95,000.00 in student loan debt (undergraduate and graduate) and $20,000.00 ...
by CyclingDuo
Mon Mar 25, 2024 9:28 am
Forum: Personal Investments
Topic: New Member-Advice on current portfolio
Replies: 8
Views: 904

Re: New Member-Advice on current portfolio

Hello, I'm new to the forum and hopefully I'm doing the format/filling out the information correctly to receive feedback on my portfolio. I'm just starting out into investing and looking to start with a basic 3 fund portfolio. I'm 34 and living in Virginia. I own a home for which I pay around $1300 monthly in mortgage with around 24 years left to pay off. I don't have any outstanding credit card debt and after this month I will no longer have my $350 monthly vehicle payment. I'm married and file jointly. My wife has no interest in participating in investment finances as she feels it is over her head. She has a basic 401k retirement account which I havent glanced at in a long time, and minimal credit card debt which should be eliminated in ...
by CyclingDuo
Sun Mar 24, 2024 1:40 pm
Forum: Personal Investments
Topic: Income from an Inherited Annuity
Replies: 8
Views: 827

Re: Income from an Inherited Annuity

I inherited a non-qualified Annuity and will take the death benefit. This will trigger taxable income. I already maxed out my Roth IRA this year. Will this income count towards the income limit of the Roth IRA? As in, is it possible it can push my and my wife's income over the edge where I am not qualified to contribute to Roth this year? Thank you. One strategy is to use the non-qualified annuity money that comes in, and use it as salary replacement while you max out every workplace retirement plan that you can with pre-tax deductions (traditional 403b/457b/401k, etc.) - if you are not already doing so - to at least help absorb the ordinary income. That's a way to shuffle the non-qualified annuity money portion that is taxable into deferr...
by CyclingDuo
Sat Mar 23, 2024 9:21 am
Forum: Investing - Theory, News & General
Topic: It is really that simple to do it the Bogleheads way?
Replies: 87
Views: 8171

Re: It is really that simple to do it the Bogleheads way?

I've made several posts of this nature but I decided to summarize the meat of what I want to say in this one. In short...is it really that easy to invest the Bogleheads way? I have read Jack Bogle's book and some other books on finance (Rich Dad Poor Dad and some I can't remember offhand) and it seemed clear-cut and simple enough. Buy index funds, hold. Profit. It's almost impossible to beat the market, so don't. I recall when I first started learning about finance years ago thinking that every investor needs to know alpha, beta, Sharpe ratio, candlestick theory etc...and that it was an arcane science that only a select few suit-clad males knew, and that's why we always saw the same faces. But apparently it isn't? There's so much informati...
by CyclingDuo
Fri Mar 22, 2024 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 219
Views: 25595

Re: The best game-changing financial advice you ever received (or "discovered")

Chardo wrote: Thu Mar 21, 2024 11:43 am Take two 25 year old twins. One invests $1000 a year at 7% return. The other decides to wait. After 10 years, the first twin stops investing and just lets it grow. The other one decides to start. Same $1000 a year, same investment, but for 30 years instead of 10. Now they're both 65. The first twin has more money than the one who invested 3x as much.
Here it is in graphic form, voila...

Image

CyclingDuo
by CyclingDuo
Thu Mar 21, 2024 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Tax software options
Replies: 2
Views: 284

Re: Tax software options

(Yeah, there was a thread yesterday, but that poster's preferences and constraints were quite different from mine.) Been a handfiler (PDFs, printed and mailed) for a while. Considering making the jump to software this year. Here are my use cases: * As many as 4 filings to make/assist with this year - DW & I, Adult non-dependent child 1, Adult dependent child 2, Elderly parents. I don't necessarily *NEED* to use software for these - the 2 kids are relatively simple even with PDFs, and we'll most likely use a preparer for my parents (but I'd like the ability to double-check). Not sure what limits any given software package puts on multiple filings. Also prefer to bundle in state filing (Missouri in all cases), but could do Missouri separ...
by CyclingDuo
Wed Mar 20, 2024 10:18 am
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 219
Views: 25595

Re: The best game-changing financial advice you ever received (or "discovered")

Telling people to stop drinking Starbucks really is terrible advice, No it isn't. Starbucks sucks. 8-) And is hideously overpriced even if it was any good. in that it falsely leads people to believe they can become wealthy by just cutting back on frivolities. Cutting back on frivolities isn't a be-all/end-all, but it can make a HUGE difference in the long haul. As with anything, it's a question of degree. Sure treat yourself here and there, but many people piss away money on frivolous and pointless things like that far too much and then wonder why they can't seem to save any money. Financial bloggers and podcast folks have covered the coffee or latte factor quite a bit. Expand that to the buying lunch at work crowd as well. Realistically, ...
by CyclingDuo
Wed Mar 20, 2024 8:38 am
Forum: Personal Finance (Not Investing)
Topic: What did you do today to increase your income? [Financial]
Replies: 64
Views: 4235

Re: What did you do today to increase your income? [Financial]

The principles of Bogleheads-style index investing are, after a little bit of study, easy to understand and easy to execute. This leaves those of us who are saving for retirement or for another life milestone with two ongoing tasks: to save more and to earn more (in order to invest more). There are countless threads on this site about cutting everyday costs, whether that means doing your own home repairs or roasting your own coffee beans. (You know who you are.) So let me pose a less frequently-asked question: what did you do today--be it interviewing for a higher-paying job, enrolling in additional training to better position yourself for a promotion, or starting a side hustle--to increase your income? I think the green section goes hand ...
by CyclingDuo
Tue Mar 19, 2024 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 219
Views: 25595

Re: The best game-changing financial advice you ever received (or "discovered")

Spend a little, save a little (or in the elegant words of CyclingDuo - pick a bushel, save a peck). Pay yourself first. Put everything on autopilot. Thanks for the shout out. Full tribute, of course, goes to one of my grandfathers who always said that phrase with a southern twang when I was growing up. He owned and operated a small farm with peach, cherry, and apple orchards, had cattle, chickens, horses, raised corn, and grew a huge garden that grandma would spend the majority of her summers canning all of the produce that was not eaten. As kids, we got to work the farm and orchards every summer as our parents would drop us off while they went off on their own vacation without us. We learned lots of life's lessons throughout our childhood...
by CyclingDuo
Tue Mar 19, 2024 1:12 pm
Forum: Investing - Theory, News & General
Topic: M1 adding monthly fee for users under $10k assets
Replies: 15
Views: 2328

Re: M1 adding monthly fee for users under $10k assets

$3 is actually kind of a lot on less than $10000. 3.6% a year on $1000 or 0.72% on $5k. Or 0.36% on $9900. I get why they are doing it though. These small clients aren’t making them any money and it encourages saving to get past the threshold . Bogleheads certainly would endorse accumulating more to get past the threshold. Sorry for those who will be impacted. I went through that with Acorns after the first few free years, but my balance has finally grown enough with additional periodic investments and appreciation that the administrative wrap fee is 0.07% and getting lower each and every month. Then again, a lot of banks charge a monthly fee if one's balance is not high enough, or additional electronic deposits are not made monthly. Cycli...
by CyclingDuo
Tue Mar 19, 2024 8:35 am
Forum: Personal Investments
Topic: Vanguard Index Funds
Replies: 17
Views: 4415

Re: Vanguard Index Funds

Appreciate all the information that the Bogleheads provide. I invested in VSTAX and VIGAX for my daughter. I bought GOOGL stock on the dip. I am maintaining cash in the VMFXX fund for my sister's account and my brokerage accounts. I did not invest in the VITAX Index Funds. I am selling several biotechnology stocks at losses and will use those funds to increase my Vanguard Index funds. The VIGAX fund is and has been an excellent investment for several decades. I watch Rob Berger's video on how to invest funds after receiving a windfall inheritance and he recommends Vanguard. Question: Does anyone invest in Schwab Index Funds or Fidelity Index Funds? Yes. One of the many Lazy Portfolios available to pursue here at Bogleheads is the Three Fun...
by CyclingDuo
Mon Mar 18, 2024 10:13 pm
Forum: Investing - Theory, News & General
Topic: Basket of Stocks
Replies: 34
Views: 3047

Re: Basket of Stocks

copenhagen227 wrote: Mon Mar 18, 2024 10:01 pm If you had a basket of stocks comprised of productive businesses that were relatively protected from the harmful effects of inflation, what companies would be in such a basket?
VTI + VXUS will cover most of your needs. :mrgreen:
by CyclingDuo
Sun Mar 17, 2024 11:33 am
Forum: Personal Investments
Topic: What should I do with a deferred annuity?
Replies: 15
Views: 1414

Re: What should I do with a deferred annuity?

You have a similar situation to mine. I have the very same annuity that you have, it is a low-cost Variable Annuity, the difference is that my Annuity is invested in a 3 fund portfolio: Total Stock Market Index, International Index, and U.S. Bond Index. This came as a result of a rollover from Mutual of America, I had their Variable Annuity, I started that back in the days when IRA Contributions were limited to $2,000 and when I didn't have access to a workplace savings plan. Haven't contributed to to for years, after rolling it over to Fidelity I have just let the account sit. I think I have rebalanced the portfolio within once since moving it to Fidelity. My plan is to keep the annuity. I may annuitize it, turning it into monthly payment...
by CyclingDuo
Sun Mar 17, 2024 10:11 am
Forum: Investing - Theory, News & General
Topic: Theoretically, would VTI be an effective long term retirement investment, even when held in a taxable account ?
Replies: 34
Views: 4300

Re: Theoretically, would VTI be an effective long term retirement investment, even when held in a taxable account ?

My question is from purely a financial perspective. In addressing the retirement needs of someone in a lower income bracket, would taxable account investing in VTI (Vanguard Total Market ETF) be effective ? Context: My curiosity was piqued in listening to Rick Ferri chat with Kaye Thomas (https://podcastaddict.com/bogleheads-on-investing-podcast/episode/171593127, starting at 23:40). They spoke about a long holding period for a taxable account, that defers paying capital gains actually lowers the overall tax rate that will be paid. Caveats and perspective: - Buy-and-hold VTI in a taxable account could be more flexible for lower income earners. - While there is a risk for paying some Federal tax on the ETF during a long holding period, for ...
by CyclingDuo
Sat Mar 16, 2024 10:48 am
Forum: Personal Investments
Topic: What should I do with a deferred annuity?
Replies: 15
Views: 1414

Re: What should I do with a deferred annuity?

Dear BHs - I am trying to decide what to do with a small personal retirement annuity account that I set up through Fidelity during a weak moment with one of their advisors - I maxed out my 401k and wanted another place to save, and didn’t want to put any more into my deferred comp. It is a tax deferred savings variable annuity vehicle that eventually (like when I’m 95) would have to be annuitized. If take withdrawals I pay tax on earnings but not on my after tax contributions (it is up about 20% since I set it up and made monthly contributions of $1000 for a few years). I had a hazy plan when I set it up that I would grow it to 250k or so and it would eventually be part of my self funded LTC account/ guaranteed income stream when I am olde...
by CyclingDuo
Sat Mar 16, 2024 8:42 am
Forum: Investing - Theory, News & General
Topic: M1 adding monthly fee for users under $10k assets
Replies: 15
Views: 2328

Re: M1 adding monthly fee for users under $10k assets

Per email I received this afternoon, M1 is ending free access for low-balance users: We've decided to end our M1 Plus membership program. Our premium features will no longer require membership and will instead be available to everyone who builds and manages their wealth on M1. Starting May 15, a $3 monthly platform fee will apply to clients with less than $10,000 in M1 assets or without an active Personal Loan. Each billing cycle will last 30 days—meeting platform requirements* at least one day during each cycle will ensure this fee is waived for you. *You will be charged the $3 Monthly Platform Fee if at any point during the 30 days prior to program launch your total aggregate M1 Earn and Invest balances do not equal or exceed $10,000 or ...
by CyclingDuo
Thu Mar 14, 2024 10:03 am
Forum: Investing - Theory, News & General
Topic: Calculating Time to $1MM and each $100k
Replies: 24
Views: 3881

Re: Calculating Time to $1MM and each $100k

9 months is how long it took me to go from $300k to $400k. 15 months passed when starting at $200k and ending on $300k. I've seen this chart used by many people. By using the chart and my two provided time spans, how do I calculate when each $100k increment will be reached starting with $400k to $500k and ending with $900k to $1MM? https://external-content.duckduckgo.com/iu/?u=https%3A%2F%2Frealestatefinancialplanner.com%2Fwp-content%2Fuploads%2FFirst-1MM-Total-Time-1-of-2.png&f=1&nofb=1&ipt=f3462eeb5b51bf273b0be72c763d29a8b7be9fbe27e7f9a7a4ff2bd1a436c769&ipo=images As others have pointed out above, it is not a perfect ladder of climbing up in value when you factor in bull and bear markets, amount of contributions, rate of ...
by CyclingDuo
Thu Mar 14, 2024 9:25 am
Forum: Personal Investments
Topic: "Rich Man's Roth" / 7702
Replies: 37
Views: 5557

Re: "Rich Man's Roth" / 7702

36E wrote: Wed Mar 13, 2024 12:46 pmI do need life insurance as I am starting a family this year and my profession can be extremely dangerous and said family could very possibly need that insurance any given day I leave the house.
The majority of us would advise you to look at term life insurance.

CyclingDuo
by CyclingDuo
Thu Mar 14, 2024 9:12 am
Forum: Personal Investments
Topic: How to use Google 401k for 2-3 fund portfolio
Replies: 63
Views: 6435

Re: Google 401k choices shockingly GOOD!

I'm trying to implement a simple 2-fund portfolio: The only 401k funds relevant to 2 or 3-fund portfolio are (neither of these have a ticker symbol): Vanguard Institutional Extended Market Index Trust - 7553 Vanguard Institutional 500 Index Trust - 7554 Google 401k choices shockingly bad good! :beer We use those two to approximate the Total US Stock Market in our workplace retirement plans (82% Institutional 500/18% Institutional Extended): https://www.bogleheads.org/wiki/Approximating_total_stock_market angelescrest wrote: For a company that hires highly intelligent employees (including OP), retitling this alarmist, reactionary heading seems only fair. I’d love to have those two funds in my 401k plan. Agree. I retitled the OP's thread in ...
by CyclingDuo
Wed Mar 13, 2024 2:10 pm
Forum: Investing - Theory, News & General
Topic: 20 Lessons From 20 Years of Managing Money - Ben Carlson
Replies: 13
Views: 3736

Re: 20 Lessons From 20 Years of Managing Money - Ben Carlson

I think point #2 is the key insight. In investing, temperament is more important than intelligence. I think Jack Bogle and Warren Buffett have both made similar points. Serenity now. I would add another lesson for DIY'ers: "Make sure that whichever spouse has the fight response in fight or flight be the one chosen to manage the investments!" :sharebeer CyclingDuo I'm not sure what you mean. I would think the one who has the equanimity and composure to do nothing when economic circumstances become somewhat extreme should be in charge. If you have a solid investment plan, doing nothing is usually preferable to either fight or flight. Maybe I misunderstood your meaning. Looks like you understood me perfectly. CyclingDuo
by CyclingDuo
Wed Mar 13, 2024 9:57 am
Forum: Investing - Theory, News & General
Topic: 20 Lessons From 20 Years of Managing Money - Ben Carlson
Replies: 13
Views: 3736

Re: 20 Lessons From 20 Years of Managing Money - Ben Carlson

Florida Orange wrote: Tue Mar 12, 2024 5:43 pm I think point #2 is the key insight. In investing, temperament is more important than intelligence. I think Jack Bogle and Warren Buffett have both made similar points. Serenity now.
I would add another lesson for DIY'ers: "Make sure that whichever spouse has the fight response in fight or flight be the one chosen to manage the investments!"

:sharebeer

CyclingDuo
by CyclingDuo
Wed Mar 13, 2024 9:43 am
Forum: Personal Investments
Topic: What Platforms are DIY Investors Using to Manage Portfolio
Replies: 26
Views: 2667

Re: What Platforms are DIY Investors Using to Manage Portfolio

I'm curious about what platforms investors are using to self-manage their portfolios, whether it's an IRA, Roth IRA or taxed account. If you're using Fidelity, Schwab or Vanguard are you using their funds or selecting your own funds, what fees are you paying? Anyone using M1 or Wealthfront? I'm using a wealth management advisory firm paying 1% AUM (ouch!) to manage my rollover IRA and Roth IRA, and contemplating making a move to self-manage this. I also have a brokerage account with Fidelity using their basket technology ($4.99/month fee) to manage a 6 fund portfolio of mostly Vanguard funds with an allocation of 70/20/10. I welcome all suggestions and ideas! You are sharing way too much of your pie with the wealth management advisory firm...
by CyclingDuo
Wed Mar 13, 2024 9:24 am
Forum: Personal Investments
Topic: Inherited IRA fund decisions
Replies: 25
Views: 2351

Re: Inherited IRA fund decisions

I thought I might solicit some advise on an inherited group of accounts that I am cleaning up. I have been working on the brokerage account, and am now looking at the IRA. Per the 10 year rule, I have already taken 2 RMDs from the account pre-clean up, and there is currently enough funding for it to be my primary source of income for the remaining 8 years of RMDs, I will be 68 by then so SS and brokerage will take over income duties. I retired in 2022 at 58 for mostly medical reasons (not on disability) and DW will probably soon be retire at 56, so we can enjoy family and traveling. My main question is, since this is my primary (and soon to be about 90%) income source, should I fund this IRA like any of my other IRAs with index funds? The ...
by CyclingDuo
Mon Mar 11, 2024 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Accumulators, what's your response to inflation?
Replies: 146
Views: 13103

Re: Accumulators, what's your response to inflation?

847 wrote: Sat Mar 09, 2024 9:59 am We've struggled with this answer for the last few years. Our final decision was to stick with the S&P 500. Our income is down both nominal and real (peaked in 2022 thanks to low interest rate environment) so we have tried to shop smart and decided to pay off our 6% mortgage. Vacation wise we've also stuck more local.
Congrats on paying off the mortgage! It certainly helps free up the monthly cash flow a bit that used to go to PI- of PITI.

Lower cost and closer to home vacations can also be memorable and fun.
by CyclingDuo
Sun Mar 10, 2024 3:55 pm
Forum: Personal Investments
Topic: Portfolio review for married couple with 13 years age difference
Replies: 27
Views: 1992

Re: Advice on allocations for married couple with 13 years age difference

Great reply and knowledge, thank you. Regarding your asset allocation examples, that is a lot more aggressive than I was expecting. I thought the “general role of thumb” was roughly 60/40 or 70/30 at age 40. Therefore I panicked when I saw my 2045 targeted fund (WFIADX) at 97/3. I thought I must have screwed something up! Lol Obviously you can’t answer for ME, but is the likes of 85/15 reasonably common for a 40 yo on here? I can't answer that with a yes or no because you'll get the full gamut of responses on these forums. There are too many variables involving risk tolerance, past experience, stability or instability of career, willingness and or need to take risk, pension or no pension, inheritance, SS or no SS, etc. We certainly were mo...
by CyclingDuo
Sun Mar 10, 2024 12:58 pm
Forum: Personal Investments
Topic: Portfolio review for married couple with 13 years age difference
Replies: 27
Views: 1992

Re: Advice on allocations for married couple with 13 years age difference

I have not told you about any fund info, but that is because I intend to move things around in the next couple of weeks as I am just getting to grips with this. Currently my 401k and Roth 401k are in a 2045 targeted retirement fund and it has a share ratio of 97%! We are thinking of bringing my ratio down to about 60% shares/40% stocks, with some of the shares international. I will do that with the Fidelity low costs market matching funds. We are thinking of doing something similar with my wife's 401k and Roth 401k, but with a 70/30 split at Empower. The Traditional IRA and both Roth IRAs are brand new and not invested yet. Similar with the HSAs, they are sitting as cash but we will invest them too. Questions Given that my wife is 13 years...
by CyclingDuo
Sun Mar 10, 2024 12:01 pm
Forum: Personal Investments
Topic: Portfolio review for married couple with 13 years age difference
Replies: 27
Views: 1992

Re: Advice on allocations for married couple with 13 years age difference

ap901 wrote: Sun Mar 10, 2024 11:58 am
Desired asset allocation: See questions please
Not seeing any questions...
by CyclingDuo
Sun Mar 10, 2024 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Mega Thread on Speed of 2023 Tax Refunds
Replies: 52
Views: 6136

Re: Mega Thread on Speed of 2023 Tax Refunds

djmbob wrote: Sat Feb 10, 2024 10:28 amCurious as to the speed of everyone's refund after filing fed/state. Let us know when you filed each, how you filed, and when your refund arrived. :moneybag
Speed of refunds? :oops:

We're on the side of the debate that believes if we are due a return, we must be doing something wrong regarding our withholding, quarterly estimates, etc. by loaning money to the government.

That being said, we haven't even downloaded TT yet to start the process of filing.

CyclingDuo
by CyclingDuo
Sat Mar 09, 2024 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Accumulators, what's your response to inflation?
Replies: 146
Views: 13103

Re: Accumulators, what's your response to inflation?

We are in the accumulation phase. As grocery, insurance and other prices rise, our annual dollar amount of savings has held steady (it's automated), but we've gotten recent raises, so our savings rate is going down. Of course we're in a priviliged position to be employed, getting raises, and accumulating, and do appreciate that. I'm curious to learn what others are doing. Are you cutting the "wants" budget so that your savings rate remains the same as the cost of "needs" increases? Pursuing a side gig? Planning to work longer before FIRE? I wanted to follow up with an article and podcast regarding consumer sentiment as to why, for many, inflation feels worse than what we see in the CPI. It's called vibecession which aft...
by CyclingDuo
Thu Mar 07, 2024 8:39 am
Forum: Investing - Theory, News & General
Topic: Has investing conservatively ever paid off over a career?
Replies: 261
Views: 32860

Re: Has investing conservatively ever paid off over a career?

I'm doing historical backtesting using the Simba spreadsheet 1871-present I am finding that if we pose our career as working for 30 years with 20%, 30%, or 40% savings rate, a 40 year retirement, while getting 40% of retirement income from Social Security at age 70, it has never paid off from 1871 to present to be a more conservative investor over a career. Accumulation starts at Age 25 Work for 30 years Get 40% of your expenses from social security starting at Age 70 Portfolio lasts until age 95 What if I work longer? (start at 25, get 40% of income form social security at age 70)... Working 35 years while planning for a 35 year retirement improved the success rate for conservative portfolios but it has never better than being stock heavy...
by CyclingDuo
Wed Mar 06, 2024 6:01 pm
Forum: Personal Investments
Topic: VG Divdend Funds in Retirement
Replies: 15
Views: 1616

Re: VG Divdend Funds in Retirement

I notice that VG High Dividend Growth and High Dividend Yield have a worst year value of -4.9% & -0.44% vs VG Total Market value of -19.51%. The best year of all 3 are very close to each other. Looking at Div Growth vs Total Market over 20 years the worst year is still 10% better for the div fund. These funds would be in IRA. Why would those 2 dividend funds not be a reasonable choice for someone in retirement and wanting stability, especially when combined with bonds? Just for fun, I threw a quick visual together for you in Numbers on my Mac with some of the various Vanguard ETFs and their current dividend yields using the current median salary for a single income earner in the US. https://live.staticflickr.com/65535/53572554779_99071...
by CyclingDuo
Wed Mar 06, 2024 9:36 am
Forum: Personal Investments
Topic: Are factors dead?
Replies: 84
Views: 10983

Re: Are factors dead?

I am moderately educated on factors through articles from Fama and French as well as people like Ben Felix who cover these topics. Factors as a whole make sense to me- I have no trouble believing that a cheap stock relative to its book value/earnings will outperform an expensive one on average, and I also can understand why a small stock may outperform a large one since it has more “room to grow.” However, I have also heard that factor premiums are dead now that so many people know of them. I have considered buying AVGE for my Roth but after hearing how some people seem to think factors are useless now, I have looked into going into VT. I strictly only use one-fund solutions and was torn between these 2. Thoughts? 1) Perhaps be less influe...
by CyclingDuo
Sun Mar 03, 2024 8:04 am
Forum: Personal Investments
Topic: Starting to get a little queasy with my AA
Replies: 31
Views: 4623

Re: Starting to get a little queasy with my AA

So, here's my question ... If you add all the above up, my AA is 82% stock / 14% Bonds / 4% Other (mostly cash). According to T. Rowe Price, you are just about in the 15%-35% in bonds for your age group (early 50's, adjusting to a higher percentage as you move through your 50's). https://live.staticflickr.com/65535/52111886303_18419c7d05_b.jpg https://www.troweprice.com/personal-investing/resources/insights/asset-allocation-planning-for-retirement.html At least based on our thinking for a household that includes one spouse with a pension, we allowed our AA to drift a bit more aggressive (higher equities) than if we did not have a pension. I'm not suggesting you have to follow that line of thought, but just pointing out it is not out of the...
by CyclingDuo
Sat Mar 02, 2024 10:15 pm
Forum: Investing - Theory, News & General
Topic: "How much should I have in my 401k" article for various ages - thoughts?
Replies: 45
Views: 6375

Re: "How much should I have in my 401k" article for various ages - thoughts?

That said, I think any "salary/income" based recommendations are flawed. What ultimately matters is our expenses (including taxes). This is one of my biggest financial pet peeves. Targeting an accumulated value to a ratio of income. Setting a savings goal per year as a percentage of income for that year makes some sense, but this case is simply a lazy multiplication of “save 20% per year * x years since 25 = target” As a “starting point” for those earning income, they are a helpful guide. How many 25, 30, 35, 40, etc. year olds have a clue as to what their expenses will be come retirement? So the Fidelity, JP Morgan, T. Rowe Price multiples of salary metric are designed to be a useful starting point guide. They all use assumption...
by CyclingDuo
Sat Mar 02, 2024 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion options and strategies...
Replies: 27
Views: 3413

Re: Roth conversion options and strategies...

With all this modeling and moving parts with some legacy goals would you not be better off modeling some of these potential future scenarios with one of the more detailed calculators such as RPM and/or Pralana to help you choose? Okay, I've run some Turbo Tax numbers based on our new reality for 2024 and 2025: •single income, rather than dual income for 2024 and going forward during my final working years •single income + pension income + qualified dividends + RMDs from IRA BDAs = $XXX,XXX Standard deduction for 2024 MFJ is $29,200, and whatever it will be in 2025. Let me rephrase the original question... Does it make sense for me to go 100% Roth 401k in 2024 and 2025 (before TCJA reverts in 2026) by using LTCG or qualified dividends from ...
by CyclingDuo
Sat Mar 02, 2024 8:47 am
Forum: Investing - Theory, News & General
Topic: Are there any special circumstances in which you'd sell or stop DCA-ing?
Replies: 25
Views: 2311

Re: Are there any special circumstances in which you'd sell or stop DCA-ing?

hiddenpower wrote: Thu Feb 29, 2024 3:37 pm
jebmke wrote: Thu Feb 29, 2024 3:33 pm WW2 was on the horizon in the 1930s. Seems to me someone investing then might have done OK over the long run.
They might have done better if they pulled out and went back in later.
Guess what percentage of the US population owned equities in the 1930's? :twisted:
by CyclingDuo
Sat Mar 02, 2024 8:42 am
Forum: Investing - Theory, News & General
Topic: Are there any special circumstances in which you'd sell or stop DCA-ing?
Replies: 25
Views: 2311

Re: Are there any special circumstances in which you'd sell or stop DCA-ing?

To be clear, I'm talking about specifically market timing under rare situations, such as extreme overvaluation like Bogle did, or tumultuous situations like WW3 on the horizon etc. Would you under any circumstances not stay the course and why? During accumulation years, no. Assuming you meant the periodic investing form of DCA where a percentage of our paycheck goes into our workplace retirement plan + the employer match every week/two weeks/month or however one is paid. We think of DCA as deploying a chunk of money - say from a windfall, bonus, or those who play the market timing game of selling and then trying to decide how and when to reinvest those funds. We invested throughout the latter 80's, the 90's, right through the dot.com, 9/11...
by CyclingDuo
Sat Mar 02, 2024 8:08 am
Forum: Investing - Theory, News & General
Topic: "How much should I have in my 401k" article for various ages - thoughts?
Replies: 45
Views: 6375

Re: "How much should I have in my 401k" article for various ages - thoughts?

The T. Rowe Price multiples of salary and benchmarks includes this message: The point of benchmarks isn’t to make you feel superior or inadequate. It’s to prompt action, coupled with a guidepost to inform those actions, even if that means staying the course. If you’re not on track, don’t despair. Focus less on the shortfall and more on the incremental steps you can take to rectify the situation: •Make sure you are taking advantage of the full company match in your workplace retirement plan. •If you can increase your savings rate right away, that’s ideal. If not, gradually save more over time. •If you have a company retirement plan that enables automatic increases, sign up. •If you are struggling to save, many employers offer financial welln...
by CyclingDuo
Sat Mar 02, 2024 7:50 am
Forum: Investing - Theory, News & General
Topic: "How much should I have in my 401k" article for various ages - thoughts?
Replies: 45
Views: 6375

Re: "How much should I have in my 401k" article for various ages - thoughts?

I’ve never understood the multiple of salary since salaries can increase or decrease as the years go on. I have many multiples of my 2010 salary but not many multiples of my 2024 salary. When I retire, I will have infinite multiples of my $0 salary. I've never understood the multiples of salary benchmarks either. A person making 100K saving 50% has a way different retirement number needthan a person making 100K saving 5%. It's a simplification of multiple of expenses: income - expenses = savings. Yeah that makes sense, I get why they use it in articles like this as everyone understands the income they make, but not everyone has a grasp of their expenses. That said, I tried using the Fidelity retirement calculator once and thought it was am...
by CyclingDuo
Sat Mar 02, 2024 7:18 am
Forum: Investing - Theory, News & General
Topic: "How much should I have in my 401k" article for various ages - thoughts?
Replies: 45
Views: 6375

Re: "How much should I have in my 401k" article for various ages - thoughts?

Usually when I see these articles, the savings amount is astronomic compared to what people actually have. I was expecting “you need a million dollars by 45” but this seems somewhat realistic. I’ve never understood the multiple of salary since salaries can increase or decrease as the years go on. I have many multiples of my 2010 salary but not many multiples of my 2024 salary. When I retire, I will have infinite multiples of my $0 salary. Footnotes, at least with JP Morgan's Guide to Retirement, states: Go to the intersection of your age and your closest current household income. https://live.staticflickr.com/65535/53551295827_9c9e82331b_c.jpg https://am.jpmorgan.com/us/en/asset-management/adv/insights/retirement-insights/guide-to-retireme...
by CyclingDuo
Fri Mar 01, 2024 2:00 pm
Forum: Investing - Theory, News & General
Topic: "How much should I have in my 401k" article for various ages - thoughts?
Replies: 45
Views: 6375

Re: "How much should I have in my 401k" article for various ages - thoughts?

That said, I think any "salary/income" based recommendations are flawed. What ultimately matters is our expenses (including taxes). This is one of my biggest financial pet peeves. Targeting an accumulated value to a ratio of income. Setting a savings goal per year as a percentage of income for that year makes some sense, but this case is simply a lazy multiplication of “save 20% per year * x years since 25 = target” As a “starting point” for those earning income, they are a helpful guide. How many 25, 30, 35, 40, etc. year olds have a clue as to what their expenses will be come retirement? So the Fidelity, JP Morgan, T. Rowe Price multiples of salary metric are designed to be a useful starting point guide. They all use assumption...
by CyclingDuo
Fri Mar 01, 2024 7:41 am
Forum: Investing - Theory, News & General
Topic: "How much should I have in my 401k" article for various ages - thoughts?
Replies: 45
Views: 6375

Re: "How much should I have in my 401k" article for various ages - thoughts?

https://wellkeptwallet.com/how-much-should-i-have-in-my-401k/ Thoughts? It seems a little light to me. Two ways you can look at it for a household in terms of "counting" the amount set aside within an individual's 401k. I believe the Well Kept Wallet blog article focuses on the former of the following two options, rather than the latter... One: single income earning household Two: dual income earning household In scenario two, it is highly likely both income earners have their own 401k/403b/457b/IRA/pension amounts. When combined, the amounts together are not so light compared to what the Well Kept Wallet measured as individual accounts. The number of households with dual incomes rose into percentiles in the 60+% range between 19...