Search found 140 matches

by luminous
Tue Sep 03, 2019 10:33 pm
Forum: Personal Investments
Topic: Marie Kondo My Portfolio Please
Replies: 29
Views: 3017

Re: Marie Kondo My Portfolio Please

Is there a reason you don't have anything in Roth? You pay the same taxes whether you put some surplus money into Roth or taxable. So why not start growing something tax-free--for EACH of you! Yeah, my income phases me out of standard Roth eligibility, and I haven't gone through the trouble of figu...
by luminous
Thu Aug 29, 2019 9:54 am
Forum: Personal Investments
Topic: Marie Kondo My Portfolio Please
Replies: 29
Views: 3017

Re: Marie Kondo My Portfolio Please

I notice that your spouse is contributing to an IRA but you aren’t. Consider a Backdoor Roth IRA.
by luminous
Tue Aug 27, 2019 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Megabackdoor Roth IRA double check
Replies: 24
Views: 1503

Re: Megabackdoor Roth IRA double check

FYI, my plan doesn’t let you convert from after-tax 401k contributions directly to a Roth IRA. The contribution has to go to a traditional IRA. It then can be converted to a Roth IRA from there (via the back door IRA process) I mention this because it wasn’t obvious to me that you couldn’t go strai...
by luminous
Mon Aug 26, 2019 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Aid Volunteering for AARP or VITA
Replies: 49
Views: 2201

Re: Tax Aid Volunteering for AARP or VITA

I’ve been volunteering for VITA for 8 years. It is incredibly rewarding. I feel very connected to my community and my fellow volunteers. It is also a big commitment. It will depend on your site, but I commit 5 hours of my Thursday night every week from February through mid-April. I can’t imagine giv...
by luminous
Wed Aug 14, 2019 10:17 am
Forum: Personal Consumer Issues
Topic: Do you "lock" computers in your home?
Replies: 77
Views: 5330

Re: Do you "lock" computers in your home?

I don't think you need sophisticated tools to bypass password protection --- all you need is the ability to boot off a USB drive or set boot order. That can be disabled in most PCs if you want to be more secure. How many burglars know how to do that? If they are really good computer people, they ca...
by luminous
Tue Aug 13, 2019 7:28 pm
Forum: Personal Consumer Issues
Topic: Do you "lock" computers in your home?
Replies: 77
Views: 5330

Re: Do you "lock" computers in your home?

Absolutely. I have had a laptop stolen from my home, and I’m very thankful that it was locked with a password.
by luminous
Tue Aug 13, 2019 6:46 pm
Forum: Personal Investments
Topic: Is a Backdoor Roth worth it in our situation?
Replies: 26
Views: 1353

Re: Is a Backdoor Roth worth it in our situation?

Absolutely worth it. You’ll be paying $81/year to shelter $12k/year. Can you share how you did that math? 1% of $70,000 = $700 1% of $20,000 = $200 -- Total = $900 Not being a jerk, but want to know if I'm not thinking of this correctly. Woah sorry, I definitely slipped a decimal there. Apologies.
by luminous
Tue Aug 13, 2019 6:22 pm
Forum: Personal Investments
Topic: Is a Backdoor Roth worth it in our situation?
Replies: 26
Views: 1353

Re: Is a Backdoor Roth worth it in our situation?

Absolutely worth it. You’ll be paying $81/year to shelter $12k/year.
by luminous
Sat Jul 27, 2019 3:53 am
Forum: Personal Investments
Topic: New Member Portfolio Analysis Request and some Questions
Replies: 11
Views: 1052

Re: New Member Portfolio Analysis Request and some Questions

Debt: Mortgage 7/1 ARM @3.375%, $1.5M ... 2. What should I do with the ~$20,000 taxable funds per month going forward? I'm thinking 3-fund portfolio at Vanguard according to an overall portfolio AA of 90/10. Welcome! I’m not sure what your mortgage payoff strategy is, but with an ARM I’d strongly s...
by luminous
Sat Jul 20, 2019 9:53 am
Forum: Personal Consumer Issues
Topic: Which Kindle do I need?
Replies: 32
Views: 1193

Re: Which Kindle do I need?

I went through a similar decision when I bought my kindle a few years ago. I visited my local Beat Buy to look at the basic kindle vs paperwhite in person. I ended up with the paperwhite. The biggest difference between these two models today is the screen resolution. Viewing them in person will help...
by luminous
Tue Jul 16, 2019 11:49 pm
Forum: Personal Finance (Not Investing)
Topic: College cost prediction and savings for 5, 3, and newborn
Replies: 102
Views: 6040

Re: College cost prediction and savings for 5, 3, and newborn

I also wish to avoid overfunding my son's 529. I have decided to fund the 529 to no more than my low-end cost estimate, and use I Bonds for the rest. Any I Bond money not needed for college can become part of my retirement FI allocation. I am also doing this. I count the I Bonds as part of my retir...
by luminous
Tue Jul 09, 2019 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Withdrawal Math Verification Needed
Replies: 20
Views: 1735

Re: Retirement Withdrawal Math Verification Needed

Is 2.5M also future value?
Is 3% annual return nominal or real?
by luminous
Tue Jul 02, 2019 2:05 pm
Forum: Personal Investments
Topic: Mega backdoor Roth IRA vs Backdoor IRA
Replies: 14
Views: 1145

Re: Mega backdoor Roth IRA vs Backdoor IRA

Here is the Boglehead wiki version of investment priority: https://www.bogleheads.org/wiki/Priorit ... nvestments
by luminous
Sun Jun 30, 2019 6:41 pm
Forum: Investing - Theory, News & General
Topic: A Simple Bogleheads Retirement Using Variable Percentage Withdrawals (VPW Forward Test)
Replies: 113
Views: 15156

Re: A Simple Bogleheads Retirement Using Variable Percentage Withdrawals (VPW Forward Test)

[*] Eventually, starting at age 70 in July 2024, a $2,000 monthly payment from Social Security. This amount will be changed every July based on May-to-May changes in the CPI-U. Social security annual cost of living increases don't work like this. They aren't pegged to CPI-U, and they increase every...
by luminous
Sun Jun 30, 2019 6:38 pm
Forum: Investing - Theory, News & General
Topic: A Simple Bogleheads Retirement Using Variable Percentage Withdrawals (VPW Forward Test)
Replies: 113
Views: 15156

Re: A Simple Bogleheads Retirement Using Variable Percentage Withdrawals (VPW Forward Test)

this “silos” thing seems rather overwrought. What is gained over just making an annual withdrawal and putting it all in one savings account? Perhaps I’m missing or misunderstanding something. There was a link to a post that answers this question in details, in the initial post: (See this post for a...
by luminous
Sat Jun 22, 2019 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Wife considering returning to work
Replies: 40
Views: 4738

Re: Wife considering returning to work

This is of course a really personal decision for your family. I can tell you what we did. My husband has stayed home full time since our first child was born ~9 years ago. This has allowed me to really lean into my career. When they were younger we never used daycare. Now that they are school age I ...
by luminous
Thu Jun 13, 2019 7:36 pm
Forum: Personal Investments
Topic: First Post! Portfolio Advice Please :)
Replies: 15
Views: 1164

Re: First Post! Portfolio Advice Please :)

Thanks for your feedback! I would recommend you pay off your car loans first before doing anything else. You'll get an immediate return on your money by not paying those high interest rates anymore. :oops: We're going to do this right away. You don't mention your financial goals, but most folks hav...
by luminous
Thu Jun 13, 2019 1:48 am
Forum: Personal Investments
Topic: First Post! Portfolio Advice Please :)
Replies: 15
Views: 1164

Re: First Post! Portfolio Advice Please :)

Hello and welcome to the forum! I would recommend you pay off your car loans first before doing anything else. You'll get an immediate return on your money by not paying those high interest rates anymore. You don't mention your financial goals, but most folks have a goal to save for retirement. Are ...
by luminous
Tue May 28, 2019 10:09 pm
Forum: Personal Investments
Topic: Backdoor Roth
Replies: 16
Views: 1246

Re: Backdoor Roth

Hello, welcome to the forum. Someone else mentioned that you should roll the other IRA back into your current 401k. I’d rather not do that. If you keep your existing IRAs you will have a tax bill at the end of the year. Please read the wiki page on Backdoor Roth, it has a lot of great examples: http...
by luminous
Sun May 19, 2019 10:02 am
Forum: Personal Investments
Topic: Should I be.... [Maxing out my Roth?]
Replies: 4
Views: 832

Re: Should I be....

Yes, that is the recommendation. Here are more details of the recommended priority of investments.
https://www.bogleheads.org/wiki/Priorit ... nvestments
by luminous
Tue Apr 09, 2019 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Scare and Withdrawal Strategy
Replies: 4
Views: 1005

Re: Retirement Scare and Withdrawal Strategy

I found a lot of information in your previous thread from last summer. Do you have additional questions that weren’t answered then?
by luminous
Tue Apr 09, 2019 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Scare and Withdrawal Strategy
Replies: 4
Views: 1005

Re: Retirement Scare and Withdrawal Strategy

Hello! What is your expected social security benefit? What ages do you hope to start taking the benefit? Will you have health insurance coverage before Medicare at 65?
by luminous
Mon Apr 08, 2019 7:15 am
Forum: Personal Finance (Not Investing)
Topic: How Much Term Life Insurance?
Replies: 56
Views: 3563

Re: How Much Term Life Insurance?

Similar position here and just paid our annual premiums. Both 25 yr policies $2MM - $1100 $750M - $400 - spouse Feel slightly over insured- wish I had laddered my policy, but oh well. As someone else pointed out, I spend more on beer than life insurance. I’m glad you are able to pay so little. The ...
by luminous
Mon Apr 08, 2019 7:08 am
Forum: Personal Finance (Not Investing)
Topic: e-file directly into IRS.gov website
Replies: 12
Views: 879

Re: e-file directly into IRS.gov website

tmcc wrote:
Mon Apr 08, 2019 5:51 am
https://www.freefilefillableforms.com/#/fd

It keeps no history after the tax year completes (seemingly)
I have used this way of filling my taxes for years. Easy and free, but you need to really know what you are doing because there is no help or wizard as with Turbo Tax.
by luminous
Mon Apr 08, 2019 12:07 am
Forum: Personal Finance (Not Investing)
Topic: How Much Term Life Insurance?
Replies: 56
Views: 3563

Re: How Much Term Life Insurance?

Similar position here and just paid our annual premiums. Both 25 yr policies $2MM - $1100 $750M - $400 - spouse Feel slightly over insured- wish I had laddered my policy, but oh well. As someone else pointed out, I spend more on beer than life insurance. I’m glad you are able to pay so little. The ...
by luminous
Sun Apr 07, 2019 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Term Life Insurance?
Replies: 56
Views: 3563

Re: How Much Term Life Insurance?

Still, the cost of insuring me for full lifestyle replacement cost was too high. We insured me for $500,000 on a 20 year term plus whatever coverage I get through work (varies) which will not pay for them to stay in the VHCOL area we live in now but will let them comfortably move elsewhere and get ...
by luminous
Sat Apr 06, 2019 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Term Life Insurance?
Replies: 56
Views: 3563

Re: How Much Term Life Insurance?

It is a very personal decision of course. Here's what we decided: My husband stays home with the kids, so when we were trying to get pregnant we estimated the cost of childcare over a 15 year period and ended up insuring him for $300,000 on a 15 year term policy. I'm the breadwinner and have much hi...
by luminous
Thu Apr 04, 2019 12:13 am
Forum: Personal Investments
Topic: 529 plan for california residents
Replies: 2
Views: 299

Re: 529 plan for california residents

Since California offers no tax benefits for saving in a 529, you should pick the 529 plan you prefer. Personally I’m using the California plan because the fees are so low and the passive age based options work for me. Part of me wishes I’d picked the Nevada plan, which is at Vanguard, so that I’d ha...
by luminous
Fri Mar 08, 2019 12:44 am
Forum: Investing - Theory, News & General
Topic: How do you benefit from tax loss harvesting?
Replies: 5
Views: 679

Re: How do you benefit from tax loss harvesting?

Current ordinary income tax is greater than current capital gains tax for most folks on this board, so saving some money on taxes now is a clear win. In addition most of us, as heavy savers, expect to pay a lower tax rate in retirement, which means that saving taxes now is worth even more as their c...
by luminous
Sat Feb 02, 2019 10:42 am
Forum: Personal Investments
Topic: What to do with Spousal IRA?
Replies: 7
Views: 369

Re: What to do with Spousal IRA?

Hello! How much longer do you plan to be contributing to Roth, and what after-retirement tax advantage will it bring? If more than $5900 I would just take the one time hit of conversion and clear the decks for Backdoor Roth’s from here on out. But if your time horizon is shorter and you don’t have t...
by luminous
Mon Jan 07, 2019 9:04 pm
Forum: Personal Investments
Topic: New to Bogleheads - Portfolio Review (1st baby on the way)
Replies: 20
Views: 2440

Re: New to Bogleheads - Portfolio Review (1st baby on the way)

Folks, I have been implementing the recommendations mentioned here. One more question - I found out this week that I also have the option to invest in a ROTH 401k with Fidelity. Should I consider this over the ROTH IRA? I am already maxing out the Traditional 401k + the employer match of $5,000 ann...
by luminous
Wed Jan 02, 2019 1:58 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1052
Views: 287441

Re: Share your net worth progression

Age Year NW YoY Comments 30 2011 -5k N/A (WAG - I didn't start tracking until March of 2011) 31 2012 45k N/A 32 2013 125k 177% (really good all around year, investments, debt paydown, and house appreciation) 33 2014 250k 100% (Ridiculous house appreciation +23.6% ) 34 2015 305k 22% 35 2016 370k 21....
by luminous
Mon Dec 31, 2018 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1052
Views: 287441

Re: Share your net worth progression

I'm in my early 40s, non-working spouse is younger. Single income household with two kids. We have always been renters, so these net worth numbers are all financial assets without home equity. 2007 - $73,389 (got married) 2008 - $124,013 2009 - $211,585 (child 1 born, became a one income family) 20...
by luminous
Sat Dec 29, 2018 12:51 am
Forum: Personal Investments
Topic: New to Bogleheads - Portfolio Review (1st baby on the way)
Replies: 20
Views: 2440

Re: New to Bogleheads - Portfolio Review (1st baby on the way)

Welcome to the forum! Congratulations on your growing family. - Stock Options : Are you just sitting on them, or exercising when they vest? - Emergency Fund : Your emergency fund feels small. Consider increasing it to 6 months worth of living expenses, don't forget to include the mortgage payments. ...
by luminous
Fri Dec 28, 2018 4:29 pm
Forum: Personal Investments
Topic: New Member - Help Wanted
Replies: 27
Views: 2588

Re: New Member - Help Wanted

Seems like reasonable choices. Is your wife's Roth IRA enough to keep your international ratio right? You might need an international fund in your 401k eventually to balance international:domestic along with stock:bond.
by luminous
Fri Dec 28, 2018 3:59 pm
Forum: Personal Consumer Issues
Topic: not funding kid's tuition
Replies: 102
Views: 3585

Re: not funding kid's tuition

When my kids were born I thought the exact same thing. I put myself through college, I paid off the debt, it built character, my kids can make it work too. However... How much was tuition, room, and board when you were in school? How much is it now? How much financial aid will your kids qualify for,...
by luminous
Fri Dec 28, 2018 1:54 pm
Forum: Personal Investments
Topic: New Member - Help Wanted
Replies: 27
Views: 2588

Re: New Member - Help Wanted

You'll probably need multiple funds in at least once account to rebalance. I take this approach: one fund per account except multiple funds in my largest account (which also has low expense ratio options) where I rebalance as necessary. Since you are thinking this way, consider dropping the target d...
by luminous
Sat Dec 22, 2018 5:07 pm
Forum: Investing - Theory, News & General
Topic: Stock Market Predictions
Replies: 9
Views: 699

Re: Market Predictions

Hint: The answer is in every BH's IPS no... i don't mean simple rebalancing.. i mean.. "to hell with having any bonds, this is a buy of a lifetime", i'm going all in. (not that i'm suggesting one actually does this..) I think staycalm has it right. I know that my answer is in my IPS. It specifies t...
by luminous
Fri Nov 30, 2018 11:49 am
Forum: Personal Investments
Topic: In-Service Roth 401(k) Rollovers
Replies: 12
Views: 1313

Re: In-Service Roth 401(k) Rollovers

So once you hit 59 1/2, there are no restrictions on rolling over into a Roth IRA, regardless of when it was established, and regardless of employment status? Once you are 59.5 years old there are no restrictions in withdrawing contributions and earnings from a Roth IRA, regardless of when it was e...
by luminous
Fri Nov 23, 2018 10:00 pm
Forum: Investing - Theory, News & General
Topic: pros and cons of target date funds?
Replies: 78
Views: 11936

Re: pros and cons of target date funds?

I also noticed a $75 cost regularly for target date when I had one. This $75 was regardless of the value of the account. What’s up with that above and beyond the 0.16% That $75 sounds like a fee from your 401k plan, not the fund itself. Do you recall what target date fund you were using, and who th...
by luminous
Fri Nov 23, 2018 1:42 am
Forum: Personal Investments
Topic: Old new investor just woke up needs to catch up
Replies: 59
Views: 6557

Re: Old new investor just woke up needs to catch up

Decision made. I'm going to open Roth accounts for wife and daughter with Vanguard and do Target Retirement funds according to their ages. Set, feed, forget. The good news about these accounts is the low cost compared to what I could get for a similar managed account within my 401(k); 0.13% (for In...
by luminous
Wed Nov 07, 2018 5:28 am
Forum: Personal Finance (Not Investing)
Topic: How much money did you receive from family? (Gifts/inheritance)
Replies: 127
Views: 14599

Re: How much money did you receive from family? (Gifts/inheritance)

I received a $1000 gift from my grandfather to help pay for college. I put myself through school other than that gift, and left college with a lot of debt. I have given my parents “loans” that were never repaid over the years. I have not received any inheritances or gifts since. My divorced parents ...
by luminous
Thu Oct 11, 2018 4:06 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor roth /Rollover IRA Mess
Replies: 8
Views: 997

Re: Backdoor roth /Rollover IRA Mess

If you rolled the entire traditional part to a TIRA then converted the after-tax part, then yes you'll have a pro-rata mess. Agreed. It hinges on what you mean by “Post tax was converted to roth IRA in fidelity via backdoor.” That’s an odd phrasing and I can’t quite tell what you did. By the way, t...
by luminous
Sun Oct 07, 2018 12:56 pm
Forum: Personal Investments
Topic: Need pretty much all kinds of advice
Replies: 7
Views: 877

Re: Need pretty much all kinds of advice

Welcome and I’m sorry for your loss. Using the Vanguard personal finance advisory plan sounds like a great idea. They will be able to talk to you about your goals and options. I agree with ExitStageLeft: don’t be hasty, but don’t wait too long on that Exxon stock. I’d define “too long” as, say, 6 mo...
by luminous
Sun Oct 07, 2018 10:39 am
Forum: Personal Investments
Topic: Mega Backdoor Roth: Confirmation of 401k Plan Language
Replies: 5
Views: 476

Re: Mega Backdoor Roth: Confirmation of 401k Plan Language

1) Does this 401k plan have the key features for doing the mega backdoor? Yup! 2) Can one do the “Roth In-Plan Conversion” instead of “Withdrawal of After-Tax Contributions”, and if so, is one better than the other? If using the “withdrawal” option, is that where one would then “withdraw into” a Ro...
by luminous
Thu Oct 04, 2018 8:23 am
Forum: Personal Finance (Not Investing)
Topic: How many months/years of living expenses do you save each year?
Replies: 29
Views: 3624

Re: How many months/years of living expenses do you save each year?

We are saving about 1x current living expenses this year but there are two important caveats: 1) Health insurance costs paid by my employer are not being counted as a living expense but for the purposes of this exercise they should be. 2) I may have under or over withheld on taxes because of the tax...
by luminous
Thu Sep 27, 2018 11:04 pm
Forum: Investing - Theory, News & General
Topic: I'm switching to Vanguard (yay!). Is it an easy transfer?
Replies: 16
Views: 1529

Re: I'm switching to Vanguard (yay!). Is it an easy transfer?

Why are you and others mailing in paperwork? Every brokerage transfer I've done in the last 10 years, including to Vanguard, involved only online forms. The only paper forms we had to send to Vanguard were our notarized and witnessed full agent authorization forms. Because Vanguard made us. I just ...
by luminous
Tue Sep 25, 2018 8:59 am
Forum: Personal Investments
Topic: Can I construct a three-fund portfolio given my 401k choices?
Replies: 3
Views: 448

Re: Can I construct a three-fund portfolio given my 401k choices?

butforwales wrote:
Mon Sep 24, 2018 10:03 pm
Tax Filing Status: Married Filing Jointly
Tax Rate: 25% Federal, 8% State
State of Residence: CA
Hello! Small note, if you are in the 8% bracket in CA then for 2018 you are probably in the 12% federal bracket. In any case the 25% federal bracket doesn’t exist anymore.
by luminous
Mon Sep 24, 2018 10:06 am
Forum: Personal Finance (Not Investing)
Topic: How to evaluate a pay package of a startup
Replies: 14
Views: 1563

Re: How to evaluate a pay package of a startup

If the startup is in the tech business and has venture funding then you should be offered market rate salary. The stock options are obviously harder to evaluate. Startup vs established company is almost a lifestyle choice. Lots of folks burnout at startups because they ask so much of their employees.
by luminous
Mon Sep 24, 2018 12:46 am
Forum: Personal Investments
Topic: Review my IPS
Replies: 13
Views: 1879

Re: Review my IPS

Welcome! [*]Become financially independent by 45 [*]Have a long enough safety net that short term market changes don't scare me [*]Have two years of reasonable expenses including food and rent available in cash or cash-like safety. [*]This is a fixed amount instead of a fixed percentage. It is in ad...