Search found 187 matches

by boglewill34
Mon Jul 13, 2020 7:57 am
Forum: Personal Investments
Topic: Is there any disadvantage to buying VT in a Schwab account?
Replies: 9
Views: 1771

Re: Is there any disadvantage to buying VT in a Schwab account?

Along the same lines, and hope the OP doesn't mind a little thread diversion. This thread gave me the thought to purchase VXUS in Schwab. I currently buy SCHE (EM) and SWISX (int ex EM) separately and frankly probably tilt too much toward EM. It may be easier to sell both of those and both in future and with those proceeds buy just VXUS. Thoughts?

I've mixed the etf and MF just to cherry pick the lower available expense ratios. The swept ER of VXUS vs both of those is close to the same. Small downside is a small cash drag because I usually buy shares of the EM etf then use every bit of the remainder to buy the MF. I do buy every 1 to 2 weeks, so the money won't loaf, it's just the fractional leftover that won't be invested.
by boglewill34
Fri May 29, 2020 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Two accountants disagree - Bogleheads for the tiebreaker
Replies: 64
Views: 4635

Re: Two accountants disagree - Bogleheads for the tiebreaker

stan1 wrote: Fri May 29, 2020 8:27 am
aristotelian wrote: Fri May 29, 2020 8:18 am Are they considering the option to give it all to the wife?
That was my thought too.
Maybe someone can fill in, but for the same income levels and years contributed, do men and women get the same payments getting SS, for the same length of time?

If so, I'd say it may actually be beneficial for the wife to put in a bit more, because actuarialy she is more likely to live longer, so will collect more in actual dollar benefit from unit input to SS.

*I'm willing to be told I'm off base here, but something I'd want to look into.
by boglewill34
Wed May 13, 2020 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Fast ?::Do grocery delivery services count as supermarkets for Amex Blue Cash cards?
Replies: 14
Views: 2259

Re: Fast ?::Do grocery delivery services count as supermarkets for Amex Blue Cash cards?

Tangent to this, do they count inside purchases as fuel at for example a convenience store that has fuel pumps and a mini-mart inside? It's already a pretty good deal just on groceries for us, we can reach the yearly max on those, wondering how gas will factor in.
by boglewill34
Tue May 12, 2020 1:51 pm
Forum: Personal Investments
Topic: ETF choice for short term cash
Replies: 33
Views: 6344

Re: ETF choice for short term cash

Wondering what people think of FLRN within this bunch. I bought that to match a liability, maybe a year ago, I honestly don't remember what informed the decision to buy that over some others, other than it was one of a somewhat limited number on the free trade list within Schwab at the time. I haven't owned any in a couple months, but would consider getting back in at some point.
by boglewill34
Tue May 12, 2020 12:30 pm
Forum: Investing - Theory, News & General
Topic: Ally lowers APR on savings from 1.5% to 1.25%
Replies: 79
Views: 11495

Re: Ally lowers APR on savings from 1.5% to 1.25%

<snip> Ally hasn't been good about customer communication with me. They only offer phone calls and email - no website messaging like every other online bank I've used. <snip> The underlined part is not true. They offer both online chat and secure messaging via their website. I have used both extensively with good results. Perhaps you just don't know how to access the functionality? Kevin Thanks for this Kevin, I use chat extensively with other banks and was going to take the previous post at face value. I went on there and made sure I could find the chat feature, even discovered they have the option for screen share if that level of help is needed. I've been fortunate to not need any help from them yet, everything has been exceedingly simp...
by boglewill34
Mon May 11, 2020 3:01 pm
Forum: Personal Investments
Topic: Marcus or Ally
Replies: 176
Views: 25140

Re: Marcus or Ally

Of course, email today from Ally Bank... HYS interest rate dropping to 1.25%. Marcus still ahead at 1.3%. Hope no one rushed from Marcus to Ally when Marcus dropped to 1.3%. I don't seem to have gotten that email yet. If that is the case, I think I'm just going to go ahead and pay off the mortgage by the end of the month. I haven't gotten the email on this, I'm a new customer but didn't rush to switch or anything, I'm mostly there for the CDs. Talk about, does anyone know when or if CD rates will go down at more or less the same time/rate? They do not go down in lock step, and not at the same time either. I would not expect the current CD rates to stay at current levels for very long, maybe a couple of days. Thanks! I've locked in but not ...
by boglewill34
Mon May 11, 2020 2:27 pm
Forum: Personal Investments
Topic: Marcus or Ally
Replies: 176
Views: 25140

Re: Marcus or Ally

stoptothink wrote: Mon May 11, 2020 2:08 pm
anon_investor wrote: Mon May 11, 2020 1:58 pm Of course, email today from Ally Bank... HYS interest rate dropping to 1.25%. Marcus still ahead at 1.3%. Hope no one rushed from Marcus to Ally when Marcus dropped to 1.3%.
I don't seem to have gotten that email yet. If that is the case, I think I'm just going to go ahead and pay off the mortgage by the end of the month.
I haven't gotten the email on this, I'm a new customer but didn't rush to switch or anything, I'm mostly there for the CDs.

Talk about, does anyone know when or if CD rates will go down at more or less the same time/rate?
by boglewill34
Mon May 11, 2020 2:12 pm
Forum: Personal Investments
Topic: My Employer, Walmart, Is Now Offering A Roth 401k Option In 2020..
Replies: 50
Views: 8581

Re: My Employer, Walmart, Is Now Offering A Roth 401k Option In 2020..

Will you be eligible for a substantial pension in addition to Social Security? A pension changes that analysis, so that Roth contributions are likely better if you have a significant pension coming in addition to Social Security. TFB blog post, "Most TSP participants should switch to the Roth TSP" . That post discussed the effect of a federal pension, but the analysis should hold for other pensions. Wiki article, "Traditional vs Roth" . Thanks for this here. At times there's a blanket "trad>>>Roth" but doesn't take into account pension holders. Even though private employers by and large don't offer pensions, the many public employees do have pensions so this simple rule of thumb doesn't so clearly apply.
by boglewill34
Thu May 07, 2020 6:28 am
Forum: Personal Investments
Topic: Please help me get out of international
Replies: 64
Views: 4163

Re: Please help me get out of international

Why not just keep the international and just not add more to it? It’ll get diluted over time, but you’ll still have exposure.
by boglewill34
Wed May 06, 2020 2:24 pm
Forum: Personal Investments
Topic: removed
Replies: 11
Views: 1123

Re: Rethinking Emergency / Savings Account options and risks: Ally / ICSH / MINT

I was in FLRN very recently, it is similar to ICSH. Just from luck and having planned to use that money to match a liability, which was to pay for a vacation just before the virus struck, I sold FLRN right before it went down an uncharacteristic amount. It wouldn't have been a travesty to have lost money on that sale, I'd have been able to cash flow the difference, but it was a learning experience that a traded vehicle is only so "safe." I'd have been more aggravated than anything, so to save that aggravation I think I'll be using FDIC products for cash reserve and short term liability matching going forward. Just another of life's lessons.
by boglewill34
Wed May 06, 2020 2:05 pm
Forum: Personal Investments
Topic: Poor Publix employee seeking 401k investment advice
Replies: 170
Views: 29641

Re: Poor Publix employee seeking 401k investment advice

One of the things I like about at least having a traditional IRA open, even if I don't contribute to it consistently, is that it allows me to contribute when and how much I want more flexibly than a workplace plan (in my case a 457). And you can contribute to it after the calendar year is up but prior to tax day, which as far as I know is not an option for a workplace plan, at least it's not for my 457. No need to get involved in general with a laggy process through a 3rd party, etc.
by boglewill34
Wed May 06, 2020 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Best online savings bank
Replies: 28
Views: 6512

Re: Best online savings bank

I just set up an Ally account last week. I was between them and Marcus, but the zero min on CDs at Ally was my draw, so I went with that. Their app and website are very good and easy to use, echeck deposit seems to work well, I do like the virtual buckets in the HYS account, I've earmarked pieces of savings that I want to move to CD rungs later. I may well set up a partial payroll direct deposit to them later on, but for now I've been moving money from my CU. My only 'complaint' as it were is that it looks to take ~3 days to move money from my CU. I'm not sure what kind of time the move back will take, but for now it doesn't matter really anyway, this is 3rd and 4th line cash reserve. I expect that the length of time required for these move...
by boglewill34
Thu Apr 30, 2020 5:21 am
Forum: Personal Investments
Topic: Pay mortgage or invest?
Replies: 18
Views: 1836

Re: Pay mortgage or invest?

Woah, I'm blown away by the thoughtful responses this post received. This is an amazing community <3 Are you maxing out your IRA? I'm currently only maxing out my employer contribution to my retirement plan. I have the option through my employer to do a mega back door roth but I'm not doing that yet. Is that worth prioritizing over the mortgage over payments? I keep wondering how the calculus changes for lower income earners with lots of space in retirement plans, both tax deferred and Roth? I have a 457, we put money in spouse's tIRA, neither yet maxed. But then she is eligible for 403b, I can set up a tIRA for myself, and both are Roth eligible. So we'd be eligible for ~$50k of tax deferred space and 12k Roth, but don't have the income t...
by boglewill34
Tue Apr 28, 2020 8:27 am
Forum: Personal Investments
Topic: S&P 500 vs Total Market Index funds
Replies: 67
Views: 8026

Re: S&P 500 vs Total Market Index funds

I hope OP doesn't mind somewhat of a piggyback post. If one were to own BOTH an S&P500 AND a total market fund, what is the best way to weight the contribution the total market makes to an overall AA? In my case, in my 457 I have access to an S&P500 and a R2500 (small AND mid) which is in itself kind of weird. I've bought SP500 and R2000 in a different account to the appropriate AA levels, but of course TSM is compelling for simplicity where it's offered. So I guess, would it make sense to give TSM the weighting given to the constituent pieces in my AA, or should I drill down via TSM's real, instantaneous weighting per a style box or something? Of course, other option is to buy SP500 and R2000 separately, in this case within a newly...
by boglewill34
Fri Apr 24, 2020 6:37 pm
Forum: Personal Investments
Topic: Poor Publix employee seeking 401k investment advice
Replies: 170
Views: 29641

Re: Poor Publix employee seeking 401k investment advice

I can barely see some of the screen shots, but it looks like you’re paying like $700 or more in fees at RJ for the $25k portfolio. A simple 2-3 fund at Vanguard would be like $25 a year instead.

A person making low income shouldn’t be in munis either, makes no sense. No knock on the OP, that’s on RJ.

OP, truly great job saving and staying out of debt.
by boglewill34
Fri Apr 24, 2020 10:49 am
Forum: Personal Investments
Topic: Advice welcome-VERY unusual circumstance: lien, NOL
Replies: 32
Views: 3803

Re: Advice welcome-VERY unusual circumstance: lien, NOL

retiredjg wrote: Fri Apr 24, 2020 9:52 am Thanks for the update. It seems you are making progress and still managing to enjoy life some. That is good. Just think....someday your update will say "I'm done!"
Thanks a lot RJG, while it sounds all work, me and wife are lucky to get a good bit of time off and we've done tons of camping and fun activities along the way, and we have also taken the odd localish vacations also. It's a very good and comfortable life, I feel like we've suffered no privation while being able to save a good bit.
by boglewill34
Fri Apr 24, 2020 9:12 am
Forum: Personal Investments
Topic: Advice welcome-VERY unusual circumstance: lien, NOL
Replies: 32
Views: 3803

Re: Advice welcome-VERY unusual circumstance: lien, NOL

... Wife and I both early 40s, ... 3 kids, 8, 10, 10. I make 55k, .. She makes 36k, w ...home which we've had since 2005, currently owe 205k at 4.875% on a first and 47k at around 5.25% on a heloc. RE taxes total around 6k a year combined. Taxes. We owe around 52k from 2012, and around 13k from 2013. NOL (normal operating loss), which we’ve carried forward. The kids all have 529 plans, my parents have 529s set up for them that Credit card debt as follows: 2k on zero percent for a year, 4k on 13%. I’ve got current plans to pay the ones carrying interest within 6 months ($750 a month), and then zero out the zero interest before carrying interest. Savings, emergency or otherwise, basically zero at this point. Retirement. We are both in a pens...
by boglewill34
Fri Apr 24, 2020 7:57 am
Forum: Personal Investments
Topic: Poor Publix employee seeking 401k investment advice
Replies: 170
Views: 29641

Re: Poor Publix employee seeking 401k investment advice

I don't see myself making more than $20/ hour since I don't think I want to be a manager and I don't feel like I'm smart enough to have a better job so I'm thinking about sticking with Publix for as long as I can Not at all saying that what you are currently doing isn't worthwhile and a significant contribution to everyone's wellbeing, especially apparent during these times. Nor that you should think you need to go into management, I similarly have chosen to likely forgo additional income because of my reticence to go into management. What I am saying is that you shouldn't sell yourself short by saying "not smart enough" in any context. That may not mean you want a different job, but may mean you want to pursue something outside ...
by boglewill34
Fri Apr 17, 2020 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Dependent Care FSA and Coronavirus
Replies: 15
Views: 760

Re: Dependent Care FSA and Coronavirus

ClevrChico wrote: Fri Apr 17, 2020 10:26 am In my experience, an FSA claim can't be paid until funds have been withheld from a paycheck. (At least at my company.)
I'm a state employee, my health FSA funding is front loaded by the state and I 'pay them off' with weekly contribs.

Like the OP, I'm curious what will happen with dependent care contribs but from reading some providers have provisions for enrollment changes with a qualified event, I'd pitch it by saying that no camps are available. I'm kind of ok though in that I only have one kid left under 13 and I only added $100 of my own money, the state pitched in I think $400 as a free benefit. He wanted to go to middle school prep camp and day camp, if they have it he'll go, if not I lose $100.
by boglewill34
Thu Apr 16, 2020 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Dependent Care FSA and Coronavirus
Replies: 15
Views: 760

Re: Dependent Care FSA and Coronavirus

I had wondered same so will be following. What’s the $5k stipulation?
by boglewill34
Tue Apr 14, 2020 12:52 pm
Forum: Personal Investments
Topic: Input on EE bonds vs other safe vehicles
Replies: 4
Views: 646

Input on EE bonds vs other safe vehicles

I posted most of this post in the 'theory' section but realize it's not the right spot to ask for input. Given the ubiquity of the EE vs I bond threads I've been having a variety of ideas lately. Often in those threads the discussion centers more among higher-income people, but I was wondering if any of the thoughts about them changes with lower income profiles. I feel like I by and large understand most or all of the cash and FI vehicles, and have bought, held and sold a variety over time to 'kick tires:' direct purchased treasuries, CDs, various bond funds including one short investment grade debt ETF (FLRN) held as short term vacation savings, as well as plain CU savings. I've gotten a late start with investing in earnest, been making re...
by boglewill34
Mon Apr 13, 2020 10:49 am
Forum: Investing - Theory, News & General
Topic: Why not go EE bonds (instead of bond funds)?
Replies: 284
Views: 37454

Re: Why not go EE bonds (instead of bond funds)?

Can only invest a small amount in EE Bonds each year. For many of us, that will not suffice. And on the flip side, most folks have no additional money to invest in taxable after funding two Roth IRAs, two 401(k)s, and a family HSA. We turned 50 this year, so that's $73,100 in tax-advantaged space to fill. We will fill most of it, but we won't have any excess to invest in taxable. We have a small amount of our emergency fund in iBonds with 0.5% or higher real yields, but with those the loss is not as great if we had to redeem some of them sooner than 20 years. Deliberating this for myself too. I've gotten a late start with investing in earnest at current age 46, but we both are in public service and one or both of us should have a govt pens...
by boglewill34
Fri Apr 10, 2020 1:35 pm
Forum: Investing - Theory, News & General
Topic: What if one rebalanced on March 16, the RBD?
Replies: 120
Views: 11150

Re: What if one rebalanced on March 16, the RBD?

I did mini-rebalance, both times out of a bond fund. Once into S&P500 and Intl ex-EM on 3/9 then again into R2000 on 3/16. The R2000 fund is up 20% since that day to close yesterday. I Roth converted Intl and EM funds on 3/30.
by boglewill34
Mon Mar 23, 2020 6:31 am
Forum: Investing - Theory, News & General
Topic: anyone accelerating their 401/457/403 contributions in next X weeks/months?
Replies: 31
Views: 2706

Re: anyone accelerating their 401/457/403 contributions in next X weeks/months?

I haven't maxed out yet, but yes I'm considering increasing my 457 contribs. I had consider it prior to things getting as bad as they are, I'm ~16 years away from needing any of it, so I'd consider things a good buy right now.

It is also a good time for Roth conversions. I may consider nibbling at that.
by boglewill34
Thu Mar 12, 2020 7:06 pm
Forum: Investing - Theory, News & General
Topic: Sizable Drop in Ultra Short Term Bond ETFs
Replies: 39
Views: 4177

Re: Sizable Drop in Ultra Short Term Bond ETFs

I’m lucky to have gotten out of a similar one FLRN, sold recently for liability matching.
by boglewill34
Wed Mar 11, 2020 11:33 am
Forum: Investing - Theory, News & General
Topic: I Bonds are a screaming buy - Tipswatch
Replies: 163
Views: 36771

Re: I Bonds are a screaming buy - Tipswatch

Phineas J. Whoopee wrote: Tue Mar 10, 2020 6:20 pm
Watty wrote: Tue Mar 10, 2020 5:27 pm Agreed, one other thing people need to be aware of is that savings bonds are one of the few investments that do not go to your estate at a stepped up cost basis.
Also agreed.

PJW
To clarify, this is a negative aspect, correct?
by boglewill34
Tue Mar 10, 2020 12:08 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 36221
Views: 4682911

Re: U.S. stocks in free fall

tj wrote: Tue Mar 10, 2020 9:11 am
ReformedSpender wrote: Tue Mar 10, 2020 8:40 am
tj wrote: Tue Mar 10, 2020 8:34 am Is the Russell 2000 really down 9% right now? Crazy
yesterday
Yahoo was showing it down with the others up. Must have been a delay
Yahoo's Russell 2000 ticker is often broken, especially during market close times.
by boglewill34
Fri Mar 22, 2019 11:06 am
Forum: Investing - Theory, News & General
Topic: 10 Year/3 Month Treasuries Inversion
Replies: 100
Views: 11268

Re: 10 Year/3 Month Treasuries Inversion

I'll follow mortgage rates and maybe refinance. Circumstantially I can't now.
I'll keep looking at one ultra short duration bond etf that I've been considering investing in to see where it goes vs cash.
I will strongly consider converting pre-tax to Roth if there is a resultant strong bear market.
by boglewill34
Wed Mar 20, 2019 10:42 am
Forum: Personal Investments
Topic: 529 plan question: When did you change to more conservative AA?
Replies: 36
Views: 3210

Re: 529 plan question: When did you change to more conservative AA?

We are in the NY 529 aggressive age-based option, 3 kids ages 9, 11, 11. Right or wrong, I consider the 529s as separate from our AA, as I view it as mostly not our money, but the kids' money. The 11 yo's glide path has already settled on fewer equities than earlier in the plan, and for this I haven't been sorry whether it was December 24 2018 nor today. If the 529 funds fall short, will you kick in the rest from other accounts? To the level of around an in-state tuition/room/board, probably yes. Likely from a combination of ibond and cash flow. Grandparents also contribute to a 529 (SC), and I'm frankly a little concerned about overfunding. In that case, it probably doesn't matter what you invest in - all stocks, all bonds or something in...
by boglewill34
Wed Mar 20, 2019 9:12 am
Forum: Personal Investments
Topic: 529 plan question: When did you change to more conservative AA?
Replies: 36
Views: 3210

Re: 529 plan question: When did you change to more conservative AA?

rkhusky wrote: Wed Mar 20, 2019 8:45 am
boglewill34 wrote: Wed Mar 20, 2019 8:31 am We are in the NY 529 aggressive age-based option, 3 kids ages 9, 11, 11. Right or wrong, I consider the 529s as separate from our AA, as I view it as mostly not our money, but the kids' money. The 11 yo's glide path has already settled on fewer equities than earlier in the plan, and for this I haven't been sorry whether it was December 24 2018 nor today.
If the 529 funds fall short, will you kick in the rest from other accounts?
To the level of around an in-state tuition/room/board, probably yes. Likely from a combination of ibond and cash flow. Grandparents also contribute to a 529 (SC), and I'm frankly a little concerned about overfunding.
by boglewill34
Wed Mar 20, 2019 8:31 am
Forum: Personal Investments
Topic: 529 plan question: When did you change to more conservative AA?
Replies: 36
Views: 3210

Re: 529 plan question: When did you change to more conservative AA?

We are in the NY 529 aggressive age-based option, 3 kids ages 9, 11, 11. Right or wrong, I consider the 529s as separate from our AA, as I view it as mostly not our money, but the kids' money. The 11 yo's glide path has already settled on fewer equities than earlier in the plan, and for this I haven't been sorry whether it was December 24 2018 nor today.
by boglewill34
Mon Mar 18, 2019 10:45 am
Forum: Personal Investments
Topic: What 457b company? Lost!
Replies: 39
Views: 2338

Re: What 457b company? Lost!

One thing about the Roth 457b is, if one takes early withdrawals before 59.5, those withdrawals from a Roth 457b are taxable. https://financegourmet.com/blog/retirement/how-to-use-roth-457-plans/ In LE or FF, folks often retire in their early or mid 50's. They may or may not need to withdraw from their 457b before 59.5 or before SS. The Roth 457b certainly isn't a great deal if one pays taxes going in and taxes if withdrawing before 59.5. If they won't need the 457b money until after age 59.5, the Roth may be a good way to go. Many in LE and FF don't pay into social security also. OP, do you pay into social security where you work? Also, OP is in IL where I believe state income taxes are high and pension plans aren't so great. The Roth 457...
by boglewill34
Sun Mar 17, 2019 9:30 am
Forum: Personal Consumer Issues
Topic: Am I being cheap? Wife wants a minivan, but I want to hold off
Replies: 170
Views: 11659

Re: Am I being cheap? Wife wants a minivan, but I want to hold off

Notwithstanding active safety features, of which there have been numerous improvements in the intervening years. From a vehicle dynamics standpoint the CRV is much more likely to be unstable and/or roll over in an accident avoidance maneuver than the minivan. Buy the minivan.
by boglewill34
Sat Mar 16, 2019 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Time to Buy Another Car - New/Used & Financing Question
Replies: 8
Views: 1172

Re: Time to Buy Another Car - New/Used & Financing Question

The only zero percent financing you’ll get is from the factory on a new car. I’ve been seeing in the 2-3% range at my credit union, depending on term, and they will finance later model used cars at the upper end of that range as well.

I’d go used, as the depreciation on a car is at its maximum very early on, like first day through a year or two. But run the calculations, including the various financing deals.
by boglewill34
Sat Mar 16, 2019 1:33 pm
Forum: Personal Investments
Topic: Should I borrow from my emergency fund to max out my ROTH IRA
Replies: 22
Views: 1667

Re: Should I borrow from my emergency fund to max out my ROTH IRA

I’d say definitely yes. In fact, I raided our cash reserves to fund a retirement account, in our case to put toward a deductible tIRA for 2018.
by boglewill34
Tue Mar 12, 2019 9:22 am
Forum: Investing - Theory, News & General
Topic: Is buying only assets with "tickers" a good Boglehead "rule"?
Replies: 23
Views: 1988

Re: Is buying only assets with "tickers" a good Boglehead "rule"?

All the best/cheapest funds in my 457 plan are CITs, so... :)
by boglewill34
Mon Mar 11, 2019 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Lowest Tax Possible
Replies: 46
Views: 5011

Re: Lowest Tax Possible

I forgot the include the inputs I entered into the calculator: I want to make sure I'm entering the right amount for 'Total plans and cafeteria'. Are these the total projected deductions for our medical plans + FSA? Filing Status: joint Someone else can claim you as a dependent: no Number of jobs: 2 Number of dependents: 1 Will you be 65 or older 1/1/2020: no Are you blind: no Spouse will be 65 or older on 1/1/2020: no Spouse blind: no Child & dependent care credit qualifying persons: 0 Child & dependent care credit expenses: $0 Child credit qualifying children: 1 EITC qualifying children: 0 Other credits: $0 Total salary: $115,000 Total plans and cafeteria: $13,400 Total tax withheld to date: $2,160 Total tax withheld from last ch...
by boglewill34
Fri Mar 08, 2019 3:20 pm
Forum: Personal Investments
Topic: 403b Question
Replies: 10
Views: 1119

Re: 403b Question

VINIX looks very good here. I'd make sure to get at least the employer match with that fund, then depending on additional amounts that you'll put in and income levels, etc, you can contribute to an IRA outside of this plan to round out your asset allocation with low ER funds.
by boglewill34
Fri Mar 08, 2019 7:08 am
Forum: Personal Finance (Not Investing)
Topic: When were you able to max out your 401k, IRAs?
Replies: 69
Views: 7859

Re: When were you able to max out your 401k, IRAs?

Age 45 here, we will max wife’s IRA for 2018 next week (!) between Roth and tira. First ever max of any retirement vehicle. For 2019 we will both likely max our individually held IRAs and I should be able to fill about half my 457. Then when our very old tax debt is cleared we should have no problem filling my 457 and both IRAs in 2020. It would still leave a 403b for her, that’ll likely be last to use because the costs are higher.
by boglewill34
Sun Mar 03, 2019 11:06 am
Forum: Personal Investments
Topic: Starting over at 28 and need a plan going forward
Replies: 23
Views: 3447

Re: Starting over at 28 and need a plan going forward

I’m 45 and started over at around 41 with a ton of debt. I have every reason to be positive at this point, and you can too.

Looks like you are in the 12% bracket, yeah max Roth if you can as long as you are there. Work on your career and getting them to set up some sort of IRA, you’ll be in good shape!
by boglewill34
Thu Feb 28, 2019 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: after tax money in traditional IRA and convert to Roth?
Replies: 18
Views: 1067

Re: after tax money in traditional IRA and convert to Roth?

azianbob wrote: Thu Feb 28, 2019 1:12 pmYou can open an IRA regardless if you have a 401k or not. Just be sure when you contribute you select non-deductible.
I don't know unequivocally, but I don't think there's anything to select for deductible or non-deductible on a tIRA account. AFAIK the selection comes at tax filing time.
by boglewill34
Tue Feb 26, 2019 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Lowest Tax Possible
Replies: 46
Views: 5011

Re: Lowest Tax Possible

Google search for ADP Paycheck calculator. You can put in different allowances to model different results, I’ve found the output matches real paychecks within less than a dollar error if you put the variables in correctly. It does state withholding correctly too.
by boglewill34
Tue Feb 26, 2019 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Lowest Tax Possible
Replies: 46
Views: 5011

Re: Lowest Tax Possible

delamer wrote: Mon Feb 25, 2019 10:12 pmYou can only put $6000 total into a Traditional IRA plus Roth IRA (per person). So you could do $3000 in Traditional and $3000 in Roth, for instance.

Traditional IRA contributions reduce current taxable income.
Wow, I’m glad I read this and verified. I did not know this, and would definitely have been over my wife’s contribution limits for 2018 ($5500). Thanks!
by boglewill34
Sat Feb 23, 2019 3:33 pm
Forum: Personal Investments
Topic: 457 pre-tax or Roth, with 0% CURRENT tax rate
Replies: 8
Views: 633

Re: 457 pre-tax or Roth, with 0% CURRENT tax rate

I think you should contribute enough to pretax over the next five years to offset your expected year six income from the 22% bracket, but no more. Currently, NOL offsets income taxed at every level, but there is nothing you can do to prevent offsetting the 10% and 12% brackets. You are already trying to optimize credits, AMT, etc. each year. So the only issue is the tax bracket in year 6. If you defer too much NOL to year 6, you may offset 12% income that year, which is pointless. If you don’t defer anything, you will pay unnecessary tax at the 22% rate. Thus, you target offsetting the 22% bracket. Superb idea, thanks! I think that’ll make for some really fun spreadsheeting over the next five years, lol. :) It looks imminently possible to ...
by boglewill34
Fri Feb 22, 2019 3:02 pm
Forum: Personal Investments
Topic: 457 pre-tax or Roth, with 0% CURRENT tax rate
Replies: 8
Views: 633

Re: 457 pre-tax or Roth, with 0% CURRENT tax rate

Have you looked at how the kids influence your taxes? Three kids adds CTC * 3, or up to $6k (if under age 17) tax credit. A good portion of that can be refundable. Any way to be eligible for EITC (no idea how NOL interacts with EITC, but that AGI level might be eligible for $6k+ refundable credits). The Retirement Saver's credit might be in play, too. It might not be best to drive AGI all the way down to standard deduction level, if you can make yourself eligible for non refundable and refundable credits. The refundable credits could be used to increase retirement savings, too - we use our refundable credits to fund Roth IRAs. Very good questions, I left some stuff out in the interest of simplicity. Based on earned income, starting this ye...
by boglewill34
Fri Feb 22, 2019 1:13 pm
Forum: Personal Investments
Topic: 457 pre-tax or Roth, with 0% CURRENT tax rate
Replies: 8
Views: 633

Re: 457 pre-tax or Roth, with 0% CURRENT tax rate

In thinking about this a bit more deeply as a function of time. It's not that I'd be deferring the money into the 22% space by putting it in now pre-tax, I'd be deferring it into the future effective tax rate space, which at today's rates would be 7-8%. Put another way, to give round numbers if I put $20k a year into pre-tax, over 5 years I'd have bought an extra year of using the NOL. Putting that into a tax calculator at today's rates and tables, I'd be paying around $10k of taxes in a year, for an effective rate of around 8%. So the question reframed is, do I put $20k a year for 5 years into pretax space to save $10k in taxes in the 6th year? Or is it worth more to do Roth and forgo that $10k? Keeping in mind that the cost to me today of...
by boglewill34
Fri Feb 22, 2019 12:59 pm
Forum: Personal Investments
Topic: 457 pre-tax or Roth, with 0% CURRENT tax rate
Replies: 8
Views: 633

Re: 457 pre-tax or Roth, with 0% CURRENT tax rate

petulant wrote: Fri Feb 22, 2019 12:55 pm Is there a time limit on using the NOL?
It is limited to 20 years, I started using it in 2015 after waiving carry back. You do however have to consume it against current income, ie you can't waive using it while it is in existence.
by boglewill34
Fri Feb 22, 2019 12:47 pm
Forum: Personal Investments
Topic: 457 pre-tax or Roth, with 0% CURRENT tax rate
Replies: 8
Views: 633

457 pre-tax or Roth, with 0% CURRENT tax rate

Obviously this would be a no-brainer if it were as simple as 0% tax rate. However, my effective tax rate is 0% due to a net operating loss carryforward, so the real question is whether I should extend my available time period of 0% tax rate by filling pre-tax space or take full advantage of the current 0% situation by using Roth? Or some combination thereof? More details. MFJ, age 45, 3 kids, total gross income for 2019 should be $135k combined for spouse and I. The operating loss currently stands at $540k, so should take roughly 5 years to consume if I do pretty much all Roth. I can contribute to 457 or Roth 457, wife could contribute to 403b although we have not set this up, but we do have a standard Roth account for her that we've contri...
by boglewill34
Thu Feb 21, 2019 1:51 pm
Forum: Personal Investments
Topic: More tax efficient place for Emergency Fund?
Replies: 25
Views: 4385

Re: More tax efficient place for Emergency Fund?

I've been attracted to short term treasury funds that are less volatile than the intermediate term ones but are likewise a cheap way to have a treasury ladder that preserves the liquidity of a fund. At Vanguard for investor shares also $3k minimum it would be VFISX, .2% ER and current yield is 2.37%. The treasury funds will be state tax exempt.

I hold a similar thing at Schwab, which has a lower ER and lower minimum .06% and $1 respectively, which is SWSBX for a mf and SCHO for an ETF. I'm moving money from directly purchased treasuries into SWSBX when they come due, it is indeed easier to manage one fully and instantly liquid fund than a ladder.
by boglewill34
Thu Feb 21, 2019 11:02 am
Forum: Personal Investments
Topic: Eliminate my emergency fund?
Replies: 90
Views: 10394

Re: Eliminate my emergency fund?

For me, I think instances for real emergency in ranked order of likelihood would be: major car repair, moderate home repair needs like a fridge, hvac or washer, large dental bill like cap, crown or root canal, and then job furlough, we are both on state payroll, but in vastly different agencies. We basically have on hand cash to cash flow those things, especially if taken in conjunction with having current payroll cash flow. Otherwise, I don't keep much cash on hand, it all goes to service current debt well over minimum payments and then increasing retirement savings contributions, or a combination thereof. Second order things are much more likely to draw down cash but are definitely not emergencies. These are things like car replacement, f...