Search found 1578 matches

by ExitStageLeft
Fri Nov 15, 2019 7:10 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 38
Views: 2105

Re: Letting retirement funds grow, without further contribution

https://firecalc.com/ $500k at default settings grows to ~$2M after 25 years. 95% of scenarios succeed with a 30-year retirement spending at $79k annually. That's in real dollars. http://cfiresim.com/ Same data, same result. Annual spend of $79k. https://www.portfoliovisualizer.com/financial-goals S...
by ExitStageLeft
Fri Nov 15, 2019 5:06 pm
Forum: Personal Investments
Topic: Yearly Retirement Deferral Limits
Replies: 5
Views: 374

Re: Yearly Retirement Deferral Limits

The specialist is in error on this one. https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan If the 457(b) plan allows, there is the possibility of special catch-up provisions: https://www.irs.gov/retirement-plans/plan-participant-emp...
by ExitStageLeft
Fri Nov 15, 2019 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should I retire now?
Replies: 13
Views: 1973

Re: Should I retire now?

As noted, it depends on your expenses. The online calculator at https://firecalc.com/ estimates how a portfolio and spending plan would perform over different windows of historical rates of return. Using your numbers and completely disregarding social security it looks like you could safely spend $1...
by ExitStageLeft
Fri Nov 15, 2019 10:41 am
Forum: Personal Investments
Topic: Which SS strategy makes more sense?
Replies: 24
Views: 1818

Re: Which SS strategy makes more sense?

The problem with any divination of strategy is that you can't know in advance what your lifespan will be, nor what market returns and inflation will be. I am coming to the point where I am looking at strategies that make the most sense regardless of how those unknowns turn out. If the majority of yo...
by ExitStageLeft
Tue Nov 12, 2019 7:01 pm
Forum: Personal Investments
Topic: 4 % Rule
Replies: 13
Views: 1301

Re: 4 % Rule

Take a look at FireCalc where there is a chart of all the things that can happen for a 4%, 30 year retirement. The chart is traces of the portfolio values over the thirty years for over 100 actual retirements as they would have historically evolved. It should give one a feel for how a portfolio can...
by ExitStageLeft
Tue Nov 12, 2019 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement and Tax savings question
Replies: 7
Views: 558

Re: Retirement and Tax savings question

If your gross income ends up at $205k and you save $15k in the tax-deferred 401k then your AGI should be $190k. That will allow you to make direct Roth IRA contributions for yourself and your spouse.

https://www.irs.gov/retirement-plans/am ... e-for-2019
by ExitStageLeft
Mon Nov 04, 2019 4:46 pm
Forum: Personal Investments
Topic: Should I let UBS manage our windfall?
Replies: 23
Views: 2506

Re: Should I let UBS manage our windfall?

For the added complexity and higher expense fees, it does about how you would expect - returns are less than a comparable three-fund portfolio. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2019&lastMonth=12&calendarAligned=true&initialAm...
by ExitStageLeft
Mon Nov 04, 2019 4:15 pm
Forum: Personal Investments
Topic: Is there a typical age (or years until retirement) where Roth IRA stops making sense vs pre-tax (401k)?
Replies: 17
Views: 2383

Re: Is there a typical age (or years until retirement) where Roth IRA stops making sense vs pre-tax (401k)?

We do know that under existing law the tax rates are due to go up in 2025, so that does shift the calculation a little in favor of increasing your Roth savings. If you can max out both 401k and IRA savings each year, the recommendation of tax-deferred in 401k and Roth IRA gives you a good balance. O...
by ExitStageLeft
Mon Nov 04, 2019 3:28 pm
Forum: Personal Investments
Topic: Employer now offering 401k, stop target retirement fund investing?
Replies: 11
Views: 476

Re: Employer now offering 401k, stop target retirement fund investing?

If the company hasn't decided on a plan provider yet there may be an opportunity to make suggestions to the HR folks about low cost index funds.
by ExitStageLeft
Mon Nov 04, 2019 2:37 pm
Forum: Personal Investments
Topic: Employer now offering 401k, stop target retirement fund investing?
Replies: 11
Views: 476

Re: Employer now offering 401k, stop target retirement fund investing?

It really depends on what is being offered in the 401k plan. If you have good affordable options then it makes sense to contribute through your employer. If the funds offered are expensive then you be better off sticking with the IRA. Ideally you will be able to do both. That is, save some in your 4...
by ExitStageLeft
Mon Nov 04, 2019 2:23 pm
Forum: Personal Investments
Topic: Investment Allocation & Questions
Replies: 6
Views: 585

Re: Investment Allocation & Questions

Thanks mcraepat9 and ExitStageLeft for your inputs. ExitStageLeft, we don't have a PMI actually. 1. For the Roth vs Traditional Retirement accounts, is you guys' reasoning to go with Traditional because we'll most likely end up in a lower tax bracket when we retire? I did some sample calculations (...
by ExitStageLeft
Mon Nov 04, 2019 2:08 pm
Forum: Personal Investments
Topic: Rebalance in taxable or keep?
Replies: 13
Views: 1202

Re: Rebalance in taxable or keep?

... Morningstar shows 3 year tax cost for US Growth to be 1.34%. This seems rather high for a stock fund. Any idea why? Cap gains? I suspect that is for short-term capital gains. But as I said before I'm no expert. I don't have a taxable brokerage account, so take my comments with the appropriate a...
by ExitStageLeft
Sun Nov 03, 2019 2:03 pm
Forum: Personal Investments
Topic: Portfolio Evaluation
Replies: 2
Views: 388

Re: Portfolio Evaluation

Something like this? Simplify taxable as it is patable with respect to LTCG taxes. Rebalance in His 401k and the Inherited IRA. Taxable 10% DFA U.S. Core Equity 1 (DFEOX) 4% Vanguard 500 Index Fund Admirals Shares (VFIAX) 4% Vanguard Total Stock Market Index Fund Admirals Shares (VTSAX) 3% Vanguard ...
by ExitStageLeft
Sun Nov 03, 2019 1:46 pm
Forum: Personal Investments
Topic: Another 403b question
Replies: 1
Views: 174

Re: Another 403b question

Your new Fidelity 500 fund (is it FXAIX?) is an index fund tracking the S&P 500 index of large cap stocks. It is a drop-in replacement for the institutional index you had before. I would keep the same allocation as before but just replacing the old 500 index fund with the new 500 index fund. The sma...
by ExitStageLeft
Sun Nov 03, 2019 1:30 pm
Forum: Personal Investments
Topic: Rebalance in taxable or keep?
Replies: 13
Views: 1202

Re: Rebalance in taxable or keep?

... They want to keep working as long as they are healthy, so retirement may not happen for another 6 to 8 years. How do I weigh the loss of roughly $6000 to taxes (15% LTCG + 5% state of $30000) if I sell vs the tax cost associated (~1.5%) with the funds if I keep? I don't claim to be an expert in...
by ExitStageLeft
Fri Nov 01, 2019 6:13 pm
Forum: Personal Investments
Topic: MegaBackDoorRoth Help
Replies: 8
Views: 714

Re: MegaBackDoorRoth Help

... My 401k employer contribution is discretionary Does the plan allow for a qualified Roth account for the employee elective contribution up to $19k? You have three flavors of contribution, and it seems that you have the ability to tweak things to however much you want to go into pre-tax versus Ro...
by ExitStageLeft
Fri Nov 01, 2019 6:01 pm
Forum: Personal Investments
Topic: Best way to sell off invididual stock investment portfolio?
Replies: 14
Views: 1296

Re: Best way to sell off invididual stock investment portfolio?

In your image of the gains and losses, you show gain as Value - Cost. Is that the same as unrealized gain as reported by Schwab? I just want to make sure you're not overlooking the fact the basis may be much higher due to distribution of dividends.
by ExitStageLeft
Fri Nov 01, 2019 5:45 pm
Forum: Personal Investments
Topic: Investment Allocation & Questions
Replies: 6
Views: 585

Re: Investment Allocation & Questions

Welcome to the forum! If the house mortgage has PMI, it would be worthwhile to pay down at least $20k on the mortgage to have at least 20% equity in the house. This will allow you to drop the monthly PMI fee. I agree about the madness of go all-Roth on 401k retirement savings. Put it in traditional ...
by ExitStageLeft
Fri Nov 01, 2019 1:33 pm
Forum: Personal Investments
Topic: New government worker investing sanity check
Replies: 15
Views: 1012

Re: New government worker investing sanity check

Welcome to the forum! Questions : 1. I’ve never had any type of IRA before. Given our situation, should we be thinking regular or Roth? Sounds like Roth, but would love a second opinion. Recommendations on best platform for our Roth? Any of the low cost brokerages are fine for the Roth IRAs. Neither...
by ExitStageLeft
Fri Nov 01, 2019 12:54 pm
Forum: Personal Investments
Topic: Entire retirement portfolio moving (involuntarily) to Fidelity
Replies: 13
Views: 1166

Re: Entire retirement portfolio moving (involuntarily) to Fidelity

Where are your Roth IRA accounts at? If you don't have any, maybe it's time to start?
by ExitStageLeft
Fri Nov 01, 2019 12:51 pm
Forum: Personal Investments
Topic: New Job and retirement planning
Replies: 11
Views: 1074

Re: New Job and retirement planning

Say the above friend decides she wants $40,000 a year in retirement instead of $50,000. She’ll have about $10,000 employer match and she wants to add $16,000 per year to meet that goal. Ignoring tax considerations, for now, if she wants to do $10,000 tax-deferred in the 403b and $6,000 Roth does it...
by ExitStageLeft
Fri Nov 01, 2019 12:41 pm
Forum: Personal Investments
Topic: 401k allocation
Replies: 17
Views: 917

Re: 401k allocation

Welcome to the forum! Thank you for replies. There’s also a add on my 401k for financial engines to give advice for free or have them manage it for me for .40% per year. That would cost alittle over 400$ a year plus fund expenses for me right now if I figured that right. From what I’ve skimmed throu...
by ExitStageLeft
Fri Nov 01, 2019 12:32 pm
Forum: Personal Investments
Topic: IRA to 401k Reverse rollover
Replies: 8
Views: 504

Re: IRA to 401k Reverse rollover

Welcome to the forum! If you have other retirement assets, the answer to your questions depends on what those assets are. Do you have a Roth IRA or any taxable assets that you are saving for retirement? Another question that needs answering is what is your desired asset allocation? One notion is to ...
by ExitStageLeft
Thu Oct 31, 2019 7:38 pm
Forum: Personal Investments
Topic: Special pension opportunity. Does it make sense?
Replies: 6
Views: 483

Re: Special pension opportunity. Does it make sense?

Welcome to the forum!

The pension of $676 beats the annuity of $417 hands-down. But how strong is the company? That's something to consider, whether they'll be able to deliver on the promised pension in 18 year.
by ExitStageLeft
Thu Oct 31, 2019 7:31 pm
Forum: Personal Investments
Topic: Rebalance in taxable or keep?
Replies: 13
Views: 1202

Re: Rebalance in taxable or keep?

Their combined income is just under $200k so they are in the 15% LTCG bracket and in 24% federal income tax bracket. All their new contributions are going into tax advantage accounts but there may be some left for the taxable account as well. Those will be going into tax efficient funds. If there w...
by ExitStageLeft
Thu Oct 31, 2019 7:24 pm
Forum: Personal Investments
Topic: If I save $65,000 a year for the next 25 years
Replies: 34
Views: 4224

Re: If I save $65,000 a year for the next 25 years

According to http://cfiresim.com/, investing $65k in real dollars every year for 25 years in a 75/25 portfolio one could expect a nest egg of $3.5M. Spending that down at a perpetual rate of 3.5% would allow you to spend $125k per year (real dollars). So ya, I think one could retire. Provided the fu...
by ExitStageLeft
Thu Oct 31, 2019 7:10 pm
Forum: Personal Investments
Topic: If I save $65,000 a year for the next 25 years
Replies: 34
Views: 4224

Re: If I save $65,000 a year for the next 25 years

Always. Maybe even comfortably. I am not sure about "Always", what if the retirement lifestyle includes buying a new Porsche or Maserati every year ?? Hence the qualifier. Might have been a little too subtle humor. But I think a lot of people get hung up on spending a fixed amount of money and don'...
by ExitStageLeft
Thu Oct 31, 2019 7:06 pm
Forum: Personal Investments
Topic: Take Dividend Income From IRAs At 59.5?
Replies: 18
Views: 1285

Re: Take Dividend Income From IRAs At 59.5?

Cosmic Pony wrote:
Thu Oct 31, 2019 6:15 pm

Guess I was so busy working, saving and investing that I never developed a vision as to how to get it all out when the time came, and the time has come sooner than I expected.
Welcome to the club! :oops:
by ExitStageLeft
Thu Oct 31, 2019 7:01 pm
Forum: Personal Investments
Topic: If I save $65,000 a year for the next 25 years
Replies: 34
Views: 4224

Re: If I save $65,000 a year for the next 25 years

justsomeguy2018 wrote:
Thu Oct 31, 2019 6:55 pm
Will that be enough to retire off of?
Always. Maybe even comfortably.
by ExitStageLeft
Thu Oct 31, 2019 4:29 pm
Forum: Personal Investments
Topic: Take Dividend Income From IRAs At 59.5?
Replies: 18
Views: 1285

Re: Take Dividend Income From IRAs At 59.5?

Capital gains will be taxed at 0% provided you keep your income below $78,500. I would consider doing the following: Just a minor correction. The figure 78,500 is actually TAXABLE income, and was also the 2018 figure. The 2019 figure is 78,950 due to inflation adjustment. To this you need to add st...
by ExitStageLeft
Thu Oct 31, 2019 4:20 pm
Forum: Personal Investments
Topic: Take Dividend Income From IRAs At 59.5?
Replies: 18
Views: 1285

Re: Take Dividend Income From IRAs At 59.5?

I echo victw's suggestion to do Roth conversions. You also can make Roth IRA contributions for both of you. That's a great way to move $14k per year from taxable to Roth. Capital gains will be taxed at 0% provided you keep your income below $78,500. I would consider doing the following: - Draw from ...
by ExitStageLeft
Thu Oct 31, 2019 3:43 pm
Forum: Personal Investments
Topic: Rebalance in taxable or keep?
Replies: 13
Views: 1202

Re: Rebalance in taxable or keep?

What is their federal LTCG bracket?
by ExitStageLeft
Thu Oct 31, 2019 12:36 pm
Forum: Personal Investments
Topic: Seeking Portfolio Advice
Replies: 8
Views: 563

Re: Seeking Portfolio Advice

Another reason not to roll the TSP into an IRA is the ability to make backdoor Roth contributions. It's a process that allows you make full contributions to Roth IRAs every year, provided you don't have any pre-tax basis in a traditional IRA.
by ExitStageLeft
Wed Oct 30, 2019 8:52 pm
Forum: Personal Investments
Topic: Replicating the 3 Vanguard fund portfolio with 401K options
Replies: 16
Views: 921

Re: Replicating the 3 Vanguard fund portfolio with 401K options

Yep, there is the tiniest bit of daylight between the curves: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2019&lastMonth=12&calendarAligned=true&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPerce...
by ExitStageLeft
Wed Oct 30, 2019 1:05 pm
Forum: Personal Investments
Topic: Should I convert my wife's 401k to IRA?
Replies: 32
Views: 1017

Re: Should I convert my wife's 401k to IRA?

If your wife will be receiving a 1099 for her contract work then she may want to create a solo 401k. Being self-employed, this would allow her to save up to $19k in elective contributions as an employee plus make contributions as an employer. Having a solo 401k that accepts rollovers also allows con...
by ExitStageLeft
Wed Oct 30, 2019 12:49 pm
Forum: Personal Investments
Topic: Should I convert my wife's 401k to IRA?
Replies: 32
Views: 1017

Re: Should I convert my wife's 401k to IRA?

In my opinion you're setting yourself up for failure by chasing performance. Target date funds are an ideal way to save for retirement in a set it and forget it sort of way. For now your wife should leave her 401k exactly where it's at. You should sit down and have a conversation with her about your...
by ExitStageLeft
Tue Oct 29, 2019 2:54 pm
Forum: Personal Investments
Topic: The Three-Fund Portfolio: Help
Replies: 2
Views: 406

Re: The Three-Fund Portfolio: Help

That wouldn't be a bad choice, particularly if the Wellington fund is priced better in the 401k than bond funds. But you'll be missing out on much of the diversification offered by a total market portfolio. Also, the international equities portion is pretty small compared to a Vanguard target date f...
by ExitStageLeft
Tue Oct 29, 2019 1:49 pm
Forum: Personal Investments
Topic: Vanguard Customer Service - Rollover IRA
Replies: 3
Views: 415

Re: Vanguard Customer Service - Rollover IRA

OP's experience matches what my wife and I experienced when we did our IRA transfers. She still has a 401a account that she should switch over, but inertia being what it is she is procrastinating. That one requires notarized paperwork so may be a little more prone to errors than the IRAs. We'll see,...
by ExitStageLeft
Tue Oct 29, 2019 1:42 pm
Forum: Personal Investments
Topic: changing the holdings in my Simple IRA at 59 yrs old
Replies: 4
Views: 199

Re: changing the holdings in my Simple IRA at 59 yrs old

Welcome to the forum! It's an excellent idea to switch over to low cost indexed funds. Depending on what is available in your wife's 401k, it may make sense to hold off on any changes until you've looked at the big picture. By looking at all retirement assets as a single portfolio, you can optimize ...
by ExitStageLeft
Tue Oct 29, 2019 1:19 pm
Forum: Personal Investments
Topic: Keep in Vanguard Employer Plan, or Move Elsewhere?
Replies: 4
Views: 284

Re: Keep in Vanguard Employer Plan, or Move Elsewhere?

If your expenses are on par with the posted ER for those funds with tickers it would be fine to leave the money where its at until you have a better sense of your plan. For now you could just put the funds into VIIIX and VBTIX in a ratio consistent with your overall allocation. Then take some time t...
by ExitStageLeft
Tue Oct 29, 2019 1:12 pm
Forum: Personal Investments
Topic: 401k Investment options
Replies: 9
Views: 478

Re: 401k Investment options

… Once you determine your desired asset allocation, you might as well make the switch all at once once. I see no benefit in a delay once the decision is made. It's important to reiterate this point. It seems to me that many folks default to dollar cost averaging as they perceive it to be the safe w...
by ExitStageLeft
Tue Oct 29, 2019 12:57 pm
Forum: Personal Investments
Topic: Help with financial plan
Replies: 5
Views: 749

Re: Help with financial plan

Can you list the options available in the 401k, or at least all the index funds and all bond or stable value funds?
by ExitStageLeft
Fri Oct 25, 2019 8:42 pm
Forum: Personal Investments
Topic: Military member portfolio suggestions/2020 game plan review
Replies: 5
Views: 536

Re: Military member portfolio suggestions/2020 game plan review

... I personally would keep some money in a taxable account just in case you would like to retire prior to 59 1/2, since you won't be able touch your Roth IRA's, TSP, or 401K's until after that age. Your point is well made, but for the TSP it is a little different in that the funds can be accessed ...
by ExitStageLeft
Fri Oct 25, 2019 4:48 pm
Forum: Personal Investments
Topic: Military member portfolio suggestions/2020 game plan review
Replies: 5
Views: 536

Re: Military member portfolio suggestions/2020 game plan review

Looks like a solid plan. I'm pretty ignorant of Roth TSP options for military , but if your top federal bracket is 22% you're pretty much in that valley where there is no strong tax argument to go one way or the other. In that case go with what makes sense for other reasons. I shifted away from a sm...
by ExitStageLeft
Fri Oct 25, 2019 4:29 pm
Forum: Personal Investments
Topic: 29yo Targeting FI at 40 - Review Request
Replies: 28
Views: 3504

Re: 29yo Targeting FI at 40 - Review Request

You may be acquainted with the Early Retirement Now blog. He does a series on Safe Withdrawal Rates and the associated risks of early retirement. The bottom line is that for a retirement horizon of 40 or 50 years you need to look at a SWR of 3.5% or less. https://earlyretirementnow.com/2016/12/07/th...
by ExitStageLeft
Fri Oct 25, 2019 3:05 pm
Forum: Personal Investments
Topic: 29yo Targeting FI at 40 - Review Request
Replies: 28
Views: 3504

Re: 29yo Targeting FI at 40 - Review Request

Welcome to the forum! (belated... 8-) ) I agree, it looks like you're on track to FI, but definitely not RE at 40. At age 45 maybe. Keep doing what you're doing, living below your means and saving aggressively. In ten years you should be sitting on a nest egg of $1.5 to $2M. But that's not enough to...
by ExitStageLeft
Fri Oct 25, 2019 2:42 pm
Forum: Personal Investments
Topic: Forty Year Inflation Protected Retirement Plan
Replies: 12
Views: 968

Re: Forty Year Inflation Protected Retirement Plan

Based on historical returns and historical inflation, a portfolio of 0/50/50 stocks/bonds/cash has a ~40% success rate. Same spending but with a 30/50/20 portfolio has a 100% success rate. The lowest equity position that allows 100% success is about 25/50/25. https://firecalc.com/ http://cfiresim.com/
by ExitStageLeft
Fri Oct 25, 2019 1:46 pm
Forum: Personal Investments
Topic: New Investor with an Inheritance
Replies: 15
Views: 2169

Re: New Investor with an Inheritance

The wiki has a page that may help: https://www.bogleheads.org/wiki/Managing_a_windfall The oft-repeated guidance is don't be in a hurry to implement something. Taxable accounts have tax consequences whenever you sell, so it's a good idea to build a well thought out plan. For the short term it's a go...
by ExitStageLeft
Fri Oct 25, 2019 12:50 pm
Forum: Personal Investments
Topic: Portfolio Review - (Significant Changes Needed!)
Replies: 8
Views: 700

Re: Portfolio Review - (Significant Changes Needed!)

In addition to the basis wiki page read about loss harvesting: https://www.bogleheads.org/wiki/Tax_loss_harvesting The underlying principle is to keep updating the basis of your taxable capital assets whenever the opportunity presents itself and the tax cost to do so is minimal. That way, in retirem...