Search found 59 matches

by coffeecup333
Mon Jun 24, 2019 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Rent/Rent or Sell/Rent?
Replies: 6
Views: 610

Re: Rent/Rent or Sell/Rent?

.... the capital gain right now is roughly $60k. If you qualify for the homeowners capital gains exclusion it would be rare that keeping it as a rental would make sense unless you were very likely to move back into it some day. Thanks, Watty. I don't think we'd move back in again one day either.
by coffeecup333
Mon Jun 24, 2019 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Rent/Rent or Sell/Rent?
Replies: 6
Views: 610

Re: Rent/Rent or Sell/Rent?

I'm not sure there is a clear cut answer one way or the other. You mentioned the subsidy, and it sounds like that continues for more than a year (as you could use it after a 1 year lease expired). Is that for housing cost only? Or a generic subsidy to use as you please? If you decide to go the rent...
by coffeecup333
Tue May 28, 2019 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Diagnosed with cancer, anything else I should be doing?
Replies: 24
Views: 4275

Re: Diagnosed with cancer, anything else I should be doing?

Hello all, I was diagnosed with cancer about 4 months ago and undergoing chemotherapy now. The prognosis looks good. Last scan showed all of cancer was gone. I'm 33 years old, married, no kids, physician by occupation. I have been out of work on FMLA for last 4 months and anticipate to be out for a...
by coffeecup333
Tue May 28, 2019 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Rent/Rent or Sell/Rent?
Replies: 6
Views: 610

Re: Rent/Rent or Sell/Rent?

Are you moving so the condo rental would be long distance? How much capital gain can be saved if you sell now? If you use $50K to pay off the mortgage, what does that do to your liquid/emergency funds? Mike Hi Mike, the condo would be about an hour away from where we will be and the capital gain ri...
by coffeecup333
Mon May 27, 2019 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Rent/Rent or Sell/Rent?
Replies: 6
Views: 610

Rent/Rent or Sell/Rent?

Hi All, We have a condo at the moment that we are debating if it would be best to rent or sell. I will be receiving a subsidy from my employer that I would like to use to rent a house and learn more about the areas we are interested in while having more space and saving to buy a house eventually. We...
by coffeecup333
Wed Apr 17, 2019 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Conversion vs Roth 401k Contribution
Replies: 12
Views: 627

Re: Conversion vs Roth 401k Contribution

Rather than framing this decision as Roth 401k contribution vs Roth to Traditional conversion in the 12% federal tax bracket, I would first assess whether Traditional or Roth contributions to 401ks and IRAs are better. Traditional might be better if you can get into range for the Retirement Savings...
by coffeecup333
Wed Apr 17, 2019 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Conversion vs Roth 401k Contribution
Replies: 12
Views: 627

Re: Conversion vs Roth 401k Contribution

I'll post my usual caution. If you have holdings in taxable, then you will have some qualified dividends residing in the 0% capital gains slot. If so, then not all of the 12% bracket is actually 12%. There will come a point where you will bump QDivs out of 0% into 15%, giving a net tax on that conv...
by coffeecup333
Thu Apr 11, 2019 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Conversion vs Roth 401k Contribution
Replies: 12
Views: 627

Re: Conversion vs Roth 401k Contribution

Conversion does not incur capital gains. Every dollar converted is taxed as normal income. Thanks for the clarification. I've edited the post to be clearer. Would a potential $19,000 Roth 401k contribution or a potentially more/less amount of conversion be more valuable in your opinion (being that ...
by coffeecup333
Thu Apr 11, 2019 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Conversion vs Roth 401k Contribution
Replies: 12
Views: 627

Re: Conversion vs Roth 401k Contribution

Your situation isn't clear. How would you convert pre-tax amounts into post-tax amounts with 0% capital gains? Capital gains apply to taxable accounts. Do you mean that your marginal tax rate is 0%? If you are deciding between contributions to a Roth 401k and converting money from Traditional to Ro...
by coffeecup333
Thu Apr 11, 2019 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Conversion vs Roth 401k Contribution
Replies: 12
Views: 627

Conversion vs Roth 401k Contribution

This year we will be in a low enough tax bracket that converting some pretax monies into post tax at 12% marginal tax bracket is possible (I don't see this ever happening again). However, how can I calculate this tax-wise to figure out the amount we can convert considering our gross income? Also, if...
by coffeecup333
Wed Feb 06, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: What do we need to earn?
Replies: 11
Views: 1106

Re: What do we need to earn?

Hilarious, I just choked on my coffee, literally. (Funny a second time, given the OP’s handle name). Sorry, OP. But keep in mind the 4% rule (safe withdrawal rate guaranteed to last 30 years), or the 3.5% rule (perpetual withdrawal rate). That is, if you want $x in spending per year, you need $25x ...
by coffeecup333
Wed Feb 06, 2019 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: What do we need to earn?
Replies: 11
Views: 1106

Re: What do we need to earn?

Hilarious, I just choked on my coffee, literally. (Funny a second time, given the OP’s handle name). Sorry, OP. But keep in mind the 4% rule (safe withdrawal rate guaranteed to last 30 years), or the 3.5% rule (perpetual withdrawal rate). That is, if you want $x in spending per year, you need $25x ...
by coffeecup333
Wed Feb 06, 2019 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: What do we need to earn?
Replies: 11
Views: 1106

Re: What do we need to earn?

Take 60 and subtract your age (say 45). Add that number to 25 (15+25 = 40) Multiply (your number) 40 x your annual expenses (70,000), 40 x 70,000 = 2,800,000. Multiply that number by 1.25 1.25 x 2,800,000 = $3,500,000 If you are 45 and want to retire now and spend net $70k, have $3,500,000. I just ...
by coffeecup333
Wed Feb 06, 2019 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: What do we need to earn?
Replies: 11
Views: 1106

Re: What do we need to earn?

Hilarious, I just choked on my coffee, literally. (Funny a second time, given the OP’s handle name). Sorry, OP. But keep in mind the 4% rule (safe withdrawal rate guaranteed to last 30 years), or the 3.5% rule (perpetual withdrawal rate). That is, if you want $x in spending per year, you need $25x ...
by coffeecup333
Wed Feb 06, 2019 10:54 am
Forum: Personal Finance (Not Investing)
Topic: What do we need to earn?
Replies: 11
Views: 1106

What do we need to earn?

Hi Bogleheads,

If we know we need a specific number(x) to account for annual expenses, retirement pretax/post tax contributions, and 529 contributions, etc. and are MFJ at 22% federal tax, 6.45% NY state bracket, how do we figure out what we need to earn in gross salaries?
by coffeecup333
Sun Dec 09, 2018 9:34 pm
Forum: Personal Investments
Topic: Short term or long term Roth conversions?
Replies: 3
Views: 408

Re: Short term or long term Roth conversions?

Money in an IRA may grow or shrink, but it does not have a "capital gain" or a "capital loss". So there is nothing that is considered a short term or long term capital gain or loss inside an IRA. That concept only applies to money in a taxable account. You converted a certain dollar amount. That do...
by coffeecup333
Sat Dec 08, 2018 3:59 pm
Forum: Personal Investments
Topic: Short term or long term Roth conversions?
Replies: 3
Views: 408

Short term or long term Roth conversions?

I had roughly $3000+ sitting in a tIRA in the 2030 target retirement which I simplified and exchanged to the the total stock market index investor shares in Feb 2018. In July 2018, I converted this amount into a Roth IRA (same vgtsx shares). This was at a loss of $115.22 and know I will have to pay ...
by coffeecup333
Sun Dec 02, 2018 9:47 pm
Forum: Personal Investments
Topic: The first million?
Replies: 36
Views: 5740

Re: The first million?

I am trying to figure out if the numbers I am seeing are realistic so please weigh in. Using an investment calculator, with a low six figure starting amount currently saved in our retirement/brokerage accounts and estimating 5.23% returns (keeping it very conservative after taxes and inflation), if...
by coffeecup333
Sun Dec 02, 2018 9:39 pm
Forum: Personal Investments
Topic: The first million?
Replies: 36
Views: 5740

Re: The first million?

No added opinions on the math, as other posters have it right, I'd just ask: What's so special about $1 million? That's just a number, and a conservative safe withdrawal amount is just $40,000/year. Your goal should have a connection to (or reflect) your projected expenses. If you're planning to sa...
by coffeecup333
Sun Dec 02, 2018 9:32 pm
Forum: Personal Investments
Topic: The first million?
Replies: 36
Views: 5740

Re: The first million?

Try Portfolio Visualizer's Financial Goals tool. You can have differing contribution rates and it adjusts for inflation. https://www.portfoliovisualizer.com/financial-goals I agree forward returns from these valuations will be lower than historical averages over the next 5-7 years Thank you for thi...
by coffeecup333
Thu Nov 29, 2018 10:05 pm
Forum: Personal Investments
Topic: The first million?
Replies: 36
Views: 5740

The first million?

I am trying to figure out if the numbers I am seeing are realistic so please weigh in. Using an investment calculator, with a low six figure starting amount currently saved in our retirement/brokerage accounts and estimating 5.23% returns (keeping it very conservative after taxes and inflation), if ...
by coffeecup333
Fri Oct 26, 2018 11:39 am
Forum: Investing - Theory, News & General
Topic: Compounding interest?
Replies: 51
Views: 5541

Re: Compounding interest?

take a look at the following picture. The bars show annual gains and losses (difference from beginning of each year to end of each year) and the purple dots show intra year losses (drops from peak to trough in each year). Do you see that even though there are intra year losses every year (on averag...
by coffeecup333
Thu Oct 25, 2018 9:55 pm
Forum: Investing - Theory, News & General
Topic: Compounding interest?
Replies: 51
Views: 5541

Re: Compounding interest?

Thank you for this. Using these retirement calculators and projecting a conservative 3%-5% return rate assumes a simple return but the annual rate of return of an investment is usually the effect of a series of returns (geometric mean). So if I am saving heavily, could it be that over time that my ...
by coffeecup333
Thu Oct 25, 2018 2:53 pm
Forum: Investing - Theory, News & General
Topic: Compounding interest?
Replies: 51
Views: 5541

Re: Compounding interest?

Please help me understand how saving heavily and compounding returns positive growth when I see losses in my accounts? Don't the losses wipe out the power of compounding in other words? If you save heavily, say 20% out of 100k and market crash by 10% per year: Yr 0: 0$ yr 1: 20k yr 2: 38k ; 90% inc...
by coffeecup333
Wed Oct 24, 2018 10:30 am
Forum: Investing - Theory, News & General
Topic: Compounding interest?
Replies: 51
Views: 5541

Compounding interest?

Please help me understand how saving heavily and compounding returns positive growth when I see losses in my accounts? Don't the losses wipe out the power of compounding in other words?
by coffeecup333
Wed Sep 19, 2018 10:47 am
Forum: Personal Consumer Issues
Topic: Recommendations for traveler's Insurance for 65 years+
Replies: 13
Views: 1069

Re: Recommendations for traveler's Insurance for 65 years+

delamer wrote:
Tue Sep 04, 2018 9:54 pm
Are you looking for reimbursement if travel is interrupted, medical evacuation coverage, or health insurance if you need treatment outside the US?
Health insurance if treatment is needed is what we are looking for primarily.
by coffeecup333
Mon Sep 03, 2018 2:47 pm
Forum: Personal Consumer Issues
Topic: Recommendations for traveler's Insurance for 65 years+
Replies: 13
Views: 1069

Recommendations for traveler's Insurance for 65 years+

Looking for traveler's insurance for two adults over 65+ years. One has high blood pressure but both will be abroad for 1.5 months and roughly 3 months. Anyone have any experience with this? Any recommendations on what to look for/watch out for? Would traveler's insurance keep coverage going abroad ...
by coffeecup333
Sun Jul 15, 2018 7:23 am
Forum: Personal Investments
Topic: To Roll Over or Leave Vested?
Replies: 3
Views: 473

Re: To Roll Over or Leave Vested?

Yes it's guranteed 5% growth. It's really a very small amount so it won't matter much in our retirement picture. After your inputs and thinking it over, I'll be leaving it. Thank you as always, Bogleheads.
by coffeecup333
Fri Jul 13, 2018 12:45 pm
Forum: Personal Investments
Topic: To Roll Over or Leave Vested?
Replies: 3
Views: 473

To Roll Over or Leave Vested?

I worked for government and left after vesting. I left all my contributions in the tier I was in when I left so it's been earning 5% growth every year. The tiers have changed now so I am lucky that if I ever go back, I can stay in this tier with all the associated benefits. But I am not sure where l...
by coffeecup333
Fri Jul 13, 2018 10:46 am
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1995

Re: Total returns

Subtracting the expense ratios off the top of these returns gives me 27.44% and 27.23% which are no where near the benchmarks. So there must be some other math in here as suggested. Others have already pointed out that you should have *added* the expense ratio to the fund returns. Let me add that f...
by coffeecup333
Thu Jul 12, 2018 4:58 pm
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1995

Re: Total returns

https://investor.vanguard.com/mutual-funds/profile/performance/vgtsx/cumulative-returns https://investor.vanguard.com/mutual-funds/profile/performance/vtiax/cumulative-returns According to the links above, the benchmark returns were 21.41%. Expense ratios: .11% vtiax and .17% for vgtsx Returns: 27.5...
by coffeecup333
Thu Jul 12, 2018 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 106
Views: 11643

Re: What rate of return are you using for retirement projections?

The projections i am using are somewhat conservative: Stocks. 3.5% real return Bonds. 0.5% real return Cash. 0.0% real return With your portfolio using these numbers will give you a 1.6% real return. This is exactly the kind of calculations I was looking for. How do you get 1.6% as the real return ...
by coffeecup333
Wed Jul 11, 2018 3:26 pm
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1995

Total returns

A few questions I hope can be clarified: 1) I am invested in total international index admiral and investor shares. Looking at the total returns for 2017, the investor shares have returned 27.40% vs the benchmark of 27.41% and the admiral shares have a total return of 27.55% vs the 27.41% benchmark....
by coffeecup333
Tue Jul 10, 2018 4:29 pm
Forum: Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 943

Re: VGTSX in Traditional IRA-Convert to Roth?

Thank you all for all the help! I have some numbers to crunch.
by coffeecup333
Sat Jul 07, 2018 10:34 pm
Forum: Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 943

Re: VGTSX in Traditional IRA-Convert to Roth?

It might be better to roll the tIRA into your existing 401k (or similar) if available. Based on your backdoor Roth comment, your marginal rate may be higher now than in retirement. If so, you would be worse off to convert now instead of after retirement. Unfortunately, I don't have that option. Our...
by coffeecup333
Sat Jul 07, 2018 10:24 pm
Forum: Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 943

Re: VGTSX in Traditional IRA-Convert to Roth?

It's all about your tax rate now versus your tax rate in the future. What rate will you pay on this conversion now? JW Roughly, if it is traditional retirement we will be staying in the same brackets (pending any more tax law changes). However, we are both hoping to retire early and use the various...
by coffeecup333
Sat Jul 07, 2018 10:19 pm
Forum: Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 943

Re: VGTSX in Traditional IRA-Convert to Roth?

If you can't roll the traditional IRA into an employer plan, it is probably worth converting. If you don't convert it now, you will have to convert it when you need a backdoor Roth, and you'll probably be in a higher tax bracket then. And if you never need a backdoor Roth, you still simplify your p...
by coffeecup333
Fri Jul 06, 2018 12:45 pm
Forum: Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 943

VGTSX in Traditional IRA-Convert to Roth?

I have a little over $3000 sitting in a Traditional IRA invested in VGTSX from a time when I was able to contribute. My Roth currently is in VTSAX and taxable is also in VGTSX to make up my desired AA (bonds are in employer accounts). Does it make sense to roll this amount into the Roth? I was using...
by coffeecup333
Tue Mar 13, 2018 10:46 am
Forum: Personal Investments
Topic: Balancing the Same Funds Across Taxable/Tax Deferred Accounts
Replies: 13
Views: 1201

Re: Balancing the Same Funds Across Taxable/Tax Deferred Accounts

You could look for similar, but not identical, funds to put in each account. For example, you could use Vanguard FTSE All-World ex-US (VFWIX) in Taxable, since you have Total Int'l in the Roth IRA. You already have S&P 500 in the 401K and Total Stock in the Roth IRA. Also note that a dividend doesn...
by coffeecup333
Fri Mar 09, 2018 7:41 am
Forum: Personal Investments
Topic: Balancing the Same Funds Across Taxable/Tax Deferred Accounts
Replies: 13
Views: 1201

Re: Balancing the Same Funds Across Taxable/Tax Deferred Accounts

This feels like several questions. 1. If you don't want to follow livesoft's suggestion, another option is don't buy the same fund in the Roth within 30 days of selling for a loss in taxable.... Another option is to use similar but different funds in each account. Of course you might be wanting to ...
by coffeecup333
Fri Mar 09, 2018 7:32 am
Forum: Personal Investments
Topic: Balancing the Same Funds Across Taxable/Tax Deferred Accounts
Replies: 13
Views: 1201

Re: Balancing the Same Funds Across Taxable/Tax Deferred Accounts

I am planning to keep these accounts forever so TLH will probably be in the picture at some point. OK, but that's not a problem. When I sell to tax-loss harvest, I can simply look to see if there will be a wash sale which takes less than a few seconds to determine. And if there will be a wash sale,...
by coffeecup333
Thu Mar 08, 2018 10:17 pm
Forum: Personal Investments
Topic: Balancing the Same Funds Across Taxable/Tax Deferred Accounts
Replies: 13
Views: 1201

Re: Balancing the Same Funds Across Taxable/Tax Deferred Accounts

I'm glad there was no internet when I started investing in a taxable account. I just did it and didn't worry about anything. And it turned out there was nothing to worry about. Hint: An easy way to never create wash sales down the road is to never sell any shares for a loss in a taxable account. Th...
by coffeecup333
Thu Mar 08, 2018 10:12 pm
Forum: Personal Investments
Topic: Balancing the Same Funds Across Taxable/Tax Deferred Accounts
Replies: 13
Views: 1201

Re: Balancing the Same Funds Across Taxable/Tax Deferred Accounts

It's a bit confusing. Generally, one of the benefits of having, say, all of your VTSAX in Roth and all of your VTIAX in taxable is that you then qualify for the admiral shares. For example, if you have $10k in each, you could have $5k Total Stock, $5k Total International in both accounts, but then ...
by coffeecup333
Thu Mar 08, 2018 2:51 pm
Forum: Personal Investments
Topic: Balancing the Same Funds Across Taxable/Tax Deferred Accounts
Replies: 13
Views: 1201

Balancing the Same Funds Across Taxable/Tax Deferred Accounts

After a year of understanding and creating an AA and balancing it across our tax deferred accounts, we've come to a point we can open a taxable and put some money into it monthly. I've spent weeks reading about tax loss harvesting and the international tax credit that's possible with keeping the Tot...
by coffeecup333
Fri Feb 16, 2018 9:06 pm
Forum: Personal Investments
Topic: Going from non-admiral funds to admiral
Replies: 14
Views: 1613

Re: Going from non-admiral funds to admiral

I just did this with my account but the Vanguard representative had me sell and rebuy to get to Admiral shares for my Roth. Is there a problem with this vs. converting with the Admiral button?
by coffeecup333
Tue Feb 13, 2018 8:48 am
Forum: Personal Investments
Topic: Abroad and what to do....
Replies: 9
Views: 1197

Re: Abroad and what to do....

(I did some editing for readability.) Trying to post this again. We are trying to minimize the ERs across all the accounts. Although they are not bad at all compared to other plans, they are more than Vanguard's. The other options in the 457b account are: the international index at .39% ER, trackin...
by coffeecup333
Sat Feb 03, 2018 3:56 pm
Forum: Personal Investments
Topic: Abroad and what to do....
Replies: 9
Views: 1197

Re: Abroad and what to do....

Can we have a listing of the 457b investment options? That is the biggest portion, and a potential location of the bond. Trying to post this again....We are trying to minimize the ERs across all the accounts so though they are not bad at all compared to other plans, they are more than Vanguard's. B...
by coffeecup333
Sat Feb 03, 2018 12:05 pm
Forum: Personal Investments
Topic: Abroad and what to do....
Replies: 9
Views: 1197

Re: Abroad and what to do....

Congrats on the opportunity to work abroad. Before contributing to IRAs, please please consult with an expat tax specialist - it's very complicated. Given the short tume frame, I'd pay down the mortgage. We are actually talking to our accountant but we just wanted to get another perspective with ev...
by coffeecup333
Fri Feb 02, 2018 7:42 am
Forum: Personal Investments
Topic: Abroad and what to do....
Replies: 9
Views: 1197

Re: Abroad and what to do....

Congrats on the opportunity to work abroad. Before contributing to IRAs, please please consult with an expat tax specialist - it's very complicated. Given the short tume frame, I'd pay down the mortgage. We are actually talking to our accountant but we just wanted to get another perspective with ev...
by coffeecup333
Wed Jan 31, 2018 9:59 pm
Forum: Personal Investments
Topic: Abroad and what to do....
Replies: 9
Views: 1197

Abroad and what to do....

Hi All, We are looking at a 70/30 AA (with 30% international and 40% domestic) at 35 and 40 years old We have the following breakdown for our accounts Roth IRA -4.47% Traditional IRA-1.60% Husband's Roth-6.180% Husband's annuity-3.97% (Vanguard Small Cap index Investor shares)-can not contribute any...