Bogleheads.org

shariron

Thank you livesoft

shariron

I'd like to TLH two substantially different mutual fund holdings this year. Both fund balances are of approx the same amount. I own fund A, spouse owns fund B. I don't though want to actually abandon my position on these funds, but I could benefit from the TLH. Could I simply sell A for B, while wif...

shariron

LifePath Index 2030 Fund seems to match the allocation you are looking for.

shariron

https://www.bogleheads.org/wiki/Bond_pr ... _over_time

If you hold it to maturity, the price fluctuations won't matter, it will be worth face value.

shariron

You'll be giving up a small amount of yield for a little less risk. In 60/40, the difference may be barely noticeable. Small enough change that it probably matters very little if you do it or not. The TLH may be more of a factor.

shariron

Answer: Rollover to IRA

Disclosure: I did not read a word of this thread other than the title. That's because I don't believe there is any scenario that would yield the answer "cash out retirement account"

shariron

I use Netgear Powerline Kit. It utilizes the electrical wiring in your home.

https://www.amazon.com/gp/product/B0192 ... UTF8&psc=1

shariron

In my opinion, Managed Payout was a “gimmicky” idea to begin with and its track record suggests nothing to change my mind. I believe Wellington, Wellesley, Balanced Index, Lifestrategy/Target Date lineups and Star are ALL superior balanced fund alternatives.

shariron

Vanguard Brokerage Services commission and fee schedules:

https://investor.vanguard.com/investing ... ommissions

Per link, New Issue CD's are commission free with minimum purchase 10k+

shariron

UTAH (UESP) allows you to create your own glide-path, utilizing many broad market Vanguard index funds, for the do-it-yourself types.

shariron

www.uesp.org

shariron

Fidelity low cost index funds:
https://www.bogleheads.org/wiki/Fidelity
You can open an account online, via mail, or via phone & pay nothing but the cost of the fund's shares

shariron

Another choice worthy of your consideration is uesp.org
Vanguard funds, low fees, extremely flexible portfolio options.

shariron

Congrats on taking positive action to rid yourself of that lousy plan you have now! UESP and Vanguard/Nevada are both excellent choices. I chose UESP due to it's very flexible custom allocations feature.

shariron

Some possibilities:
Vanguard Balanced Index Fund Admiral Shares
or one of the Vanguard Life Strategy funds
https://investor.vanguard.com/mutual-fu ... estrategy/#/

shariron

Three thoughts:
-Use Vanguard or Fidelity, not TDA
-Do not inflate your profit
-Give this a good read-through: https://www.bogleheads.org/wiki/Solo_401(k)_plan

shariron

There are no costs to open or maintain a Solo 401(k) with Vanguard. Takes about 10 minutes to fill out the paperwork, and establish online access. Very smart to be thinking about maximizing your retirement savings at your age. You will be handsomely rewarded at retirement time. Ensure you carefully ...

shariron

Step 1: Rollover the IRA to Vanguard, and choose the Target Retirement Fund with an asset allocation that best meets your risk tolerance and income needs.
Step 2: There is no step 2 , you are done!

shariron

The problem with high yield is that extra yield won't matter much if (actually make that WHEN) there is a large drop in NAV. And it will likely occur during an economic downturn, with your stock holdings also plummeting and possibly a job layoff. If you are in the bond market to buy-and-hold for the...

shariron

We use Utah's plan UESP.org
Extremely low cost, Vanguard Funds, very flexible options.

shariron

Misterbill, thank you very much for passing this deal along.

shariron

Hello. #1 This "employee" contribution can be to I401(k) or Roth I401(k), if Roth is also offered by your plan. (Vanguard plan does offer Roth) So it does not necessarily have to be "pre-tax". #2 This "employer" portion cannot be made to a ROTH I401(k), it must be made to Traditional I401(K) You can...

shariron

Naked Economics: Undressing the Dismal Science by Charles Wheelan is a terrific read. A very enjoyable and accessible intro to economics.

shariron

Would it be accurate or not to say that selling Vanguard Intermediate-Term Tax-Exempt before or after the capital gain distribution would be inconsequential for TLH purposes? i.e. if selling after the distribution, would the tax bill on the gain just be equivalently offset by the additional loss in ...

shariron

Worth noting, it is unlikely your new employer's 401k (even if they use Vanguard) will offer a better selection of funds and lower costs vs rolling it over to an IRA at Vanguard.

shariron

When changes occur to the DJIA, is their thought to attempt to replace what they anticipate to be future under-performers with future out-performers? I always thought the idea was to replace an irrelevant company with one more relevant to the economy as whole, and let the chips (pun intended) fall w...

shariron

It's highly likely that you will pay a much, much, lower expense ratio by rolling into an IRA with a low cost provider vs. your employer's 401(k)

shariron

Check out this post by a frequent contributor to this forum.

http://whitecoatinvestor.com/rebutting- ... insurance/

shariron

You invested in 4 very low cost, very well-diversified funds. Congratulate yourself on making a smart decision and ignore the noise.

shariron

I've found Turbo Tax miscalculates the solo 401(k) max contribution.
It's very likely your maximum employer contribution is much less than $5500 that Turbo Tax is telling you.
Best to calculate it yourself based on below.

https://www.bogleheads.org/wiki/Solo_401(k)_plan

shariron

Yes I noticed that as well. Article says it was scheduled to make a distribution on September 18, yet it has not happened.

shariron

That's a good question actually.
The answer is no- solo 401(k) contributions will not defer or lower your self-employment tax.
Some useful info on self-employment tax:
http://taxes.about.com/od/soleproprieto ... nt-tax.htm

shariron

May I suggest investing in the low two figures with these two red hot picks: http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365/ref=sr_1_1?ie=UTF8&qid=1358476668&sr=8-1&keywords=bogleheads+guide+to+investing http://www.amazon.com/Little-Book-Common-Sense-Investing/dp/0470...

shariron

Don't be sorry! Everyone here has asked that same question at some point. Except of course for those born with an understanding of bond fund distributions

shariron

Perhaps also consider a similarly composed Target Retirement fund instead. This would make it even simpler, as you would be removing the future need to adjust the allocation to be more conservative over time.

shariron

Sounds like you are doing everything right, and for the right reasons. Successor owner would be naming who takes ownership of the account should the owner pass away.

shariron

Important to think how this 529 fits in to your overall financial plan. Are you sacrificing money that could be used for maxing out IRA’s first? Could this money be going into a 401(k) with a company match that you’re missing out on? Could it be paying off high interest debt? Things like that. Also ...

shariron

You are totally on the right track and that plan would be a solid choice with the Fidelity index funds. However, check out Utah's plan as well. UESP.ORG You'll find their expenses are lower than the Mass plan, offer Vanguard's broad market index funds, and allow for a completely customizable & aged ...

shariron

You can have your cake and eat it too! Keep your AOL account/e-mail, just download Internet Explorer from here. http://windows.microsoft.com/en-US/internet-explorer/downloads/ie You can then use that browser to access Vanguard's webpage and your accounts. You can also access your AOL account e-mail ...

shariron

Thinking that strategy could be worked into a great April Fools Day prank around here.

shariron

Congrats. Well deserved. Mike's blog rocks.

shariron

Day9- Except it is very, very, VERY unlikely you will be able to successfully time the market. What is the definition of “going up”? Does that mean you wait and buy in when they go up 1%? Or do you keep waiting until they go up 5%?. But what if during that waiting period they drop? Or a sudden unexp...

shariron

Mickeyd- I understand this change is no different than any other change. Seeing it in the news renewed my curiosity as to what the S&P500 tracking index funds actually do in this situation.

shariron

What happens when Sears is replaced in the S&P500 on Tuesday? I’ve always wondered just what happens in situations like this. What do the index funds do to avoid frontrunning? If there is a defined set plan on handling? But that would still invite manipulation, as others would take advantage of what...

shariron

JW- thank you. I was not aware of that. With some good planning, that article's "workaround #1" might allow you to have your cake and eat it too.

shariron

529 is a great idea. You are helping the child to go to college without incurring debt. Helping the parents out with a major financial burden. Gaining favorable tax treatment. Also favorable treatment when applying for financial aid vs child or parent account ownership. Bogle-ize it by using Utah’s ...

shariron

You’ll pay a total of 0.16%. There’s no additional ER. You are correct; you can mimic these funds yourself with admiral shares of their underlying holdings and save a bit on the ER.

shariron

It's possible you can still deduct it, depending on your income

http://www.bogleheads.org/wiki/Traditional_IRA
http://www.investopedia.com/articles/re ... z22oDn9nRv

shariron

Anyone with properly configured and fully updated anti-virus software will not have an issue, it would have detected this virus long ago.

shariron

Thank you everyone for the replies. Based on them I will give TD a try!

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