Search found 65 matches

by Loyalnine
Sun Nov 10, 2019 3:46 am
Forum: Personal Investments
Topic: Timing of bond downshifting before retirement (to reduce SOR risk)?
Replies: 5
Views: 707

Timing of bond downshifting before retirement (to reduce SOR risk)?

I’ve read that having a slightly larger bond portfolio around the time of your retirement (and then later shift back to a higher stock portfolio) can reduce sequence of return risk (especially for early retirement scenarios). However, how far in advance of retirement should I start downshifting into...
by Loyalnine
Sun Nov 10, 2019 3:41 am
Forum: Personal Finance (Not Investing)
Topic: What to put into Revocable Living Trust?
Replies: 8
Views: 1342

What to put into Revocable Living Trust?

I have a question about what to put inside a Revocable Living Trust. I have read multiple theories. Some say that you don’t need to bother moving accounts to it that have beneficiaries, because they will avoid probate anyway. However, since I have young kids (5, 3, and 1 month) I prefer to have a “p...
by Loyalnine
Thu Oct 31, 2019 5:49 pm
Forum: Personal Investments
Topic: TSM fund to buy in Fidelity SE 401(k)?
Replies: 6
Views: 446

Re: TSM fund to buy in Fidelity SE 401(k)?

For anyone that's curious, Fidelity actually doesn't allow their Self-Employed 401(k)s to invest in their Zero funds!
by Loyalnine
Thu Oct 31, 2019 8:46 am
Forum: Personal Investments
Topic: TSM fund to buy in Fidelity SE 401(k)?
Replies: 6
Views: 446

Re: TSM fund to buy in Fidelity SE 401(k)?

FZROX, FSXAX, VTI, or ITOT are all OK in a tax advantaged Fidelity account. Can you see a difference between the blue, red, and yellow lines in this chart ? Cool view! I guess I'm asking people to opine on the (admittedly difficult/impossible) task of determining whether FZROX or FSXAX would offer ...
by Loyalnine
Thu Oct 31, 2019 7:25 am
Forum: Personal Investments
Topic: TSM fund to buy in Fidelity SE 401(k)?
Replies: 6
Views: 446

Re: TSM fund to buy in Fidelity SE 401(k)?

Even if you are not comfortable with Fidelity's ZERO Total Market Index Fund (FZROX) 0%, because of the proprietory index. You still have Fidelity's Total Market Index Fund (FSKAX) 0.015% which uses the Dow Jones U.S. Total Stock Market Index. Why complicate things by holding Vanguard funds at Fide...
by Loyalnine
Thu Oct 31, 2019 5:29 am
Forum: Personal Investments
Topic: TSM fund to buy in Fidelity SE 401(k)?
Replies: 6
Views: 446

TSM fund to buy in Fidelity SE 401(k)?

I just got my funds inside a new Fidelity Self-Employed 401(k), and need to choose the fund to invest in. I ultimately want to buy a 2-fund portfolio of 85% total stock market index and 15% total international stock index. I'll keep my questions focused on the US funds for simplicity. That said, I h...
by Loyalnine
Mon Dec 31, 2018 10:53 am
Forum: Personal Investments
Topic: Catching up on backdoor Roth
Replies: 6
Views: 343

Re: Catching up on backdoor Roth

JW-Retired wrote:
Mon Dec 31, 2018 10:33 am
Have you filed IRS 8606 forms for all your post-tax IRA contribution years? That's the starting point of doing what you want and it sounds like maybe you didn't.
JW
Yes, I did.
by Loyalnine
Mon Dec 31, 2018 10:23 am
Forum: Personal Investments
Topic: Catching up on backdoor Roth
Replies: 6
Views: 343

Re: Catching up on backdoor Roth

That’s part of my question. The only pre-tax funds I have outside my SEP contributions are the gains on those post-tax traditional contributions I made.
by Loyalnine
Mon Dec 31, 2018 10:06 am
Forum: Personal Investments
Topic: Catching up on backdoor Roth
Replies: 6
Views: 343

Catching up on backdoor Roth

I need help with an unusual question for backdoor Roth contributions. I have been making the traditional post-tax contributions for several years, but haven’t gone through with converting those contributions to Roth. Dumb, I know. I have a fair amount of SEP-IRA contributions standing in my way via ...
by Loyalnine
Sat May 26, 2018 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Should parents renew life insurance?
Replies: 8
Views: 776

Re: Should parents renew life insurance?

Life insurance is for the purpose of providing for the needs of a survivor after the demise of the insured. The analysis is to do the income and spending plan for the couple and then see what happens to that plan in case of the death of either one. The changes start with what the survivor benefits ...
by Loyalnine
Sat May 26, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Should parents renew life insurance?
Replies: 8
Views: 776

Re: Should parents renew life insurance?

Life insurance is for the purpose of providing for the needs of a survivor after the demise of the insured. The analysis is to do the income and spending plan for the couple and then see what happens to that plan in case of the death of either one. The changes start with what the survivor benefits ...
by Loyalnine
Sat May 26, 2018 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Should parents renew life insurance?
Replies: 8
Views: 776

Should parents renew life insurance?

My wife's parents came to me for advice on life insurance. He is 61, she is 60. He is planning to retire in 2 years, she wants to retire in 4. They run a stable chiropractic business (he's the chiropractor, she's the office manager, with 2 other FT employees). My question: Do they need to bid out so...
by Loyalnine
Mon Apr 16, 2018 5:48 am
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Re: Best Solo 401k option?

I go out to lunch and step into the local TDAmeritrade office and hand them a check. I have nice chat with the person I know there. I don't even know if there are other ways to make a contribution, but there probably are. You can also make electronic contributions at TDA. ACH transfer to a taxable ...
by Loyalnine
Sat Apr 14, 2018 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Re: Best Solo 401k option?

I have a Fidelity solo 401(k) and it drives me crazy that I need to call them to make contributions rather than being able to transfer cash online from my sole proprietorship or brokerage accounts. Have you explored setting up the cash management account to allow for electronic transfers? Sounds li...
by Loyalnine
Sat Apr 14, 2018 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Re: Best Solo 401k option?

PhillyBird wrote:
Sat Apr 14, 2018 8:15 pm
And I did not explore the two-step process - don't have a Cash Mgmt account so it wouldn't be an option for me.
Is there a downside to creating a Cash Management account that you know of? Seriously pursuing this, so just trying to understand all my options.
by Loyalnine
Sat Apr 14, 2018 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Re: Best Solo 401k option?

1. Local office. 2. Free ETF trades 3. Accepted my rollover 4. Roth option (I am not using it) 5. Loan option (I am not using it) 6. Excellent web site 7. Convenience for me since I have many other accounts with TDAmeritrade I don't think WCI info on solo 401(k)s is up to date. How do you make your...
by Loyalnine
Sat Apr 14, 2018 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Re: Best Solo 401k option?

livesoft wrote:
Sat Apr 14, 2018 7:53 pm
I think TDAmeritrade is still the best.
Oh? What do you like about it?
by Loyalnine
Sat Apr 14, 2018 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Re: Best Solo 401k option?

I've been using Fidelity solo 401k for several years. I like it. Their index funds are as cheap as Vanguard's, but spit off more capital gains than Vanguard's (which I don't see as an issue since it's a tax deferred account). They allowed me to move pre-existing SEP-IRA into the 401k (had to go to ...
by Loyalnine
Sat Apr 14, 2018 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Re: Best Solo 401k option?

*accidentally double posted*
by Loyalnine
Sat Apr 14, 2018 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Re: Best Solo 401k option?

I suggest Fidelity rather than Schwab for the solo 401k. Fidelity has a total international stock index fund, Schwab does not have a total international stock index fund. The differences in expense ratios between Fidelity and Schwab are tiny, and meaningless. Thanks - do you have direct experience ...
by Loyalnine
Sat Apr 14, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: Switching from SEP IRA to Solo 401k
Replies: 2
Views: 290

Re: Switching from SEP IRA to Solo 401k

I've already contributed to my SEP IRA for tax year 2017 (though I made the contribution this month). Can I still switch to and contribute to the solo 401k in 2018? Yes. As long as you don't make any contributions to the SEP IRA for 2018, you're good. As I max out my 401k at my main job, I know tha...
by Loyalnine
Sat Apr 14, 2018 6:37 pm
Forum: Personal Investments
Topic: Solo 401K with E-trade or Vanguard?
Replies: 13
Views: 2556

Re: Solo 401K with E-trade or Vanguard?

This is a no-brainer for what you want to do- eTrade. I have a Vanguard solo 401(k). It is restricted to investor share classes and doesn't take IRA rollovers. If I had it to do over again, I'd open it at eTrade. For now, inertia has me by the nose so I'm still at Vanguard. I'm considering closing ...
by Loyalnine
Sat Apr 14, 2018 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Best Solo 401k option?
Replies: 22
Views: 3316

Best Solo 401k option?

Who has the best solo 401k option? I'm interested in investing in two funds: Total Stock Market and Total International. The plan must allow IRA rollovers (which knocks out Vanguard). My top consideration set is Fidelity, E-Trade, and Schwab. I like Fidelity's low expense ratio funds, but (based on ...
by Loyalnine
Sat Apr 14, 2018 2:42 pm
Forum: Investing - Theory, News & General
Topic: Switching from SEP IRA to Solo 401k
Replies: 2
Views: 290

Switching from SEP IRA to Solo 401k

I'm planning to switch from my side income SEP IRA to a Solo 401k, and had two questions. For background, I also max out a 401k at my main job. 1) I've already contributed to my SEP IRA for tax year 2017 (though I made the contribution this month). Can I still switch to and contribute to the solo 40...
by Loyalnine
Sat Apr 14, 2018 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion question
Replies: 4
Views: 542

Re: Roth conversion question

How did the SEP IRA come to contain non-deductible contributions? I already had a SEP, and when I went to make a non-deductible contribution the Vanguard employee recommended I keep everything in my SEP rather than open up a separate account. A distribution from a mixed IRA is a pro-rated distribut...
by Loyalnine
Sat Apr 14, 2018 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Making quarterly estimated payments w/ deductions?
Replies: 11
Views: 674

Re: Making quarterly estimated payments w/ deductions?

One difference between quarterly payments and deductions is that deductions any time of the year all count the same, while underpayment of quarterly payments could subject you to a penalty - even if the totals were fine for the year. There may be some confusion about the term deductions which OP us...
by Loyalnine
Sat Apr 14, 2018 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Making quarterly estimated payments w/ deductions?
Replies: 11
Views: 674

Re: Making quarterly estimated payments w/ deductions?

kaneohe wrote:
Sat Apr 14, 2018 12:41 pm
Are you talking about Federal or state tax? If Federal, a large state deduction for 529 plan won't affect Federal?
State tax - thanks for clarifying.
by Loyalnine
Sat Apr 14, 2018 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Making quarterly estimated payments w/ deductions?
Replies: 11
Views: 674

Re: Making quarterly estimated payments w/ deductions?

One difference between quarterly payments and deductions is that deductions any time of the year all count the same, while underpayment of quarterly payments could subject you to a penalty - even if the totals were fine for the year. Hmm, so does that mean I need to just contribute the full amount ...
by Loyalnine
Sat Apr 14, 2018 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion question
Replies: 4
Views: 542

Roth conversion question

I have a question about Roth conversions. I've been making traditional nondeductible contributions for my wife and myself for the last few years (including 2018) ever since we got above the income limits. I've been dragging my feet on making the Roth conversion because I had some traditional pre-tax...
by Loyalnine
Sat Apr 14, 2018 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Making quarterly estimated payments w/ deductions?
Replies: 11
Views: 674

Making quarterly estimated payments w/ deductions?

Do I have to use a worksheet to make my quarterly estimated payments, or can I simply "correct" the numbers to what I think the actual needed payment will be? I live in Pennsylvania. I've been earning self-employment income on the side for several years. At first it wasn't significant, but this year...
by Loyalnine
Sat Apr 07, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications of recharacterizing improper Roth contributions?
Replies: 3
Views: 303

Re: Tax implications of recharacterizing improper Roth contributions?

FiveK wrote:
Sat Apr 07, 2018 3:28 pm
Your assumption is correct.
Thanks for your help!
by Loyalnine
Sat Apr 07, 2018 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications of recharacterizing improper Roth contributions?
Replies: 3
Views: 303

Tax implications of recharacterizing improper Roth contributions?

Last year I had to recharacterize some Roth contributions (because I wasn't eligible due to income) - am I going to owe any taxes as a result of the recharacterization? I'm assuming not, because I'm going from Roth (post-tax) to Traditional (post-tax nondeductible), both of which are post-tax. Yes, ...
by Loyalnine
Sun Mar 25, 2018 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Hire an accountant?
Replies: 14
Views: 1313

Re: Hire an accountant?

I assume you don’t use tax software like TurboTax ? I used the H&R Block Online service in the past, but I usually end up spending at least 15 hours doing it (trying to understand some of the ambiguous questions they ask, looking at the underlying spreadsheets, researching on forums to see if the s...
by Loyalnine
Sun Mar 25, 2018 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Hire an accountant?
Replies: 14
Views: 1313

Hire an accountant?

Does anyone have a sense for about what percentage of Bogleheads hire an accountant vs. do their own taxes? I have hired an accountant for the last two years at H&R Block after doing it myself for all my life, but the accountant is $500 and didn't know what a Backdoor Roth was. I feel like I should ...
by Loyalnine
Sat Mar 17, 2018 8:20 pm
Forum: Personal Investments
Topic: Withdraw contributions from mega-backdoor Roth penalty-free?
Replies: 2
Views: 726

Withdraw contributions from mega-backdoor Roth penalty-free?

I know you can withdraw contributions to a Roth IRA early penalty-free (after a few minor caveats are covered), but does the same rule apply for mega-backdoor Roth contributions? Does tax law see these types of contributions any differently?
by Loyalnine
Sat Mar 17, 2018 8:16 pm
Forum: Personal Investments
Topic: How to plan for starting a non-profit at age 50
Replies: 1
Views: 329

How to plan for starting a non-profit at age 50

I would like guidance on how to adjust my financial plan (if at all) to semi-retire at age 50 and start a non-profit. I will settle for waiting until age 55, as originally planned, if necessary. Details below. But first, thanks to everyone for the fantastic community and sounding board that this for...
by Loyalnine
Sat Mar 10, 2018 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: How to sell a chiropractic practice?
Replies: 2
Views: 610

Re: How to sell a chiropractic practice?

I'm an attorney in a corporate setting (non-law firm) so my experience is not first-hand . . . however, my immediate thought was for your FIL to find a young/recently graduated chiropractor with a drive to own/run their own practice. My dentist is in his mid-thirties and assumed ownership of a long...
by Loyalnine
Sat Mar 10, 2018 7:13 pm
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

I don't have a problem with 100/0 in 30s or even 40s. I don't consider the fact that an increase in riskiness for a single year should be used to evaluate the overall riskiness of a portfolio that'll last 30-40+ years if you include drawdown. It depends on what your personal risk tolerance and beha...
by Loyalnine
Sat Mar 10, 2018 7:13 pm
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

I will not be in 100/0 “right before I retire.” This is simply justification for why I am 100/0 Right now. Loyalnine, Then, how could you use any of the stock historical return over 10, 15, 20 years for your justification? You will not be 100/0 stock over that long period. How exactly are you going...
by Loyalnine
Sat Mar 10, 2018 4:57 pm
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

- All of my investments are in tax-advantaged vehicles (other than EF and some additional funds in checking), and therefore untouchable (unless I want to endure significant pain) - For the sake of clarity, I'd like to just focus on the allocation on my tax-advantaged savings (which I want for retir...
by Loyalnine
Sat Mar 10, 2018 3:20 pm
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

Loyalnine, << still want to go another 5 or 10 years at a minimum before I start downshifting into bonds. >> So, how are you going to do this? You are at 530K now. Let's assume that you add 50K per year to the portfolio, 1) In year 5, you will have at least 750K. You are at 40 years old. Your 50% l...
by Loyalnine
Sat Mar 10, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: How to sell a chiropractic practice?
Replies: 2
Views: 610

How to sell a chiropractic practice?

My wife's parents own a successful chiropractic practice, and they've asked for my guidance in selling it in the next few years. Any advice on where to go to learn more? For example, ideally I want to know the profile of a typical buyer, where to learn about expected multiples, tax considerations, e...
by Loyalnine
Sat Mar 10, 2018 12:49 pm
Forum: Personal Investments
Topic: Large/Mid/Small Cap blend to mimic Total Stock Market
Replies: 15
Views: 2927

Re: Large/Mid/Small Cap blend to mimic Total Stock Market

Okay - I realize now I said the wrong funds. The funds I actually have in my 401k are: Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX) (This appears to be the S&P 500) Vanguard Mid-Cap Index Fund Institutional Shares (VMCIX) Vanguard Small-Cap Index Fund Institutional Plus Share...
by Loyalnine
Sat Mar 10, 2018 12:34 pm
Forum: Personal Investments
Topic: Large/Mid/Small Cap blend to mimic Total Stock Market
Replies: 15
Views: 2927

Re: Large/Mid/Small Cap blend to mimic Total Stock Market

Keep in mind that the Vanguard Large Cap Index Fund (VLCAX) includes the stocks in the Vanguard Mid Cap Index Fund (VIMSX). Vanguard Mega Cap (Top 70% of market by cap) Vanguard Large Cap (Top 85% of market by cap) Vanguard Mid Cap (70-85% of market by cap) Vanguard Small Cap (85-98% of market by c...
by Loyalnine
Sat Mar 10, 2018 12:28 pm
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

My objective is not to change your decision, just give you differing points of view. As long as you have processed all those perspectives, and have the relevant info, you have to do what is best for you two. As I said, in much of this there aren't right or wrong answers - and really what is ultimat...
by Loyalnine
Sat Mar 10, 2018 7:59 am
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

Thanks to everybody - I feel good about my answer now. You have all convinced me that not maxing our tax advantaged vehicles, even up to almost a quarter of our income, is crazy. However, I think I’m going to dedicate any additional money on TOP of tax-advantages vehicles to the mortgage. Thanks for...
by Loyalnine
Fri Mar 09, 2018 10:49 pm
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

I disagreed. If a person is "House Poor", 1) In a housing crash, the house is upside down in the loan, he does not have the money to sell the house. While I suspect this will not sway you, I owe $200K on a house that I bought for $330K 5 years ago in a market that has been growing. I know values co...
by Loyalnine
Fri Mar 09, 2018 10:42 pm
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

3funder wrote:
Fri Mar 09, 2018 3:26 pm
No-brainer; invest the money. I'm pretty damn sure that stocks will return more than 3.5% annualized over the next 30 years. If they don't, we're all in a heap of trouble.
Even if it's a taxable account, and I don't have any bond exposure? Does that change your answer at all?
by Loyalnine
Fri Mar 09, 2018 10:41 pm
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

- Does your spouse work? How much other liquidity do you have, outside of 5-6 mos EF? What happens if the economy tanks and you get laid off? Personally (I am an MBA too, but in my 50s) I like to keep a fair amount of liquidity. As good as the job market is right now, you get to a certain point and...
by Loyalnine
Fri Mar 09, 2018 10:03 am
Forum: Personal Investments
Topic: Paying off mortgage vs. additional tax-advantaged retirement savings
Replies: 93
Views: 7178

Re: Paying off mortgage vs. additional tax-advantaged retirement savings

Max out retirement vehicles. No brainer. Look at recent mortgage rates. They have gone up. Youd be hard pressed to find a 3.5 30 year mortgage now. You may find that a 3.5% mortgage is something you want to hold on to if rates keep creeping up. Will do - I'm convinced. Other thoughts on, after maxi...