Search found 618 matches

by bradpevans
Mon Jan 27, 2020 6:34 pm
Forum: Personal Investments
Topic: I can’t decide
Replies: 9
Views: 1435

Re: I can’t decide

Are Roth conversions in your plan? You could do a CD ladder to cover the taxes each year
by bradpevans
Mon Jan 27, 2020 6:30 pm
Forum: Personal Investments
Topic: Should I refinance mortgage? Or stick with existing loan?
Replies: 2
Views: 338

Re: Should I refinance mortgage? Or stick with existing loan?

Losing some of the interest deduction due to lower rates is a good thing as I see it; it does make the rate comparison a bit more complicated

IF you refi at the lower rate you might continue with “old” payment amount
by bradpevans
Fri Jan 24, 2020 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Torn Between Aggressive Home Payoff or Investing
Replies: 67
Views: 6856

Re: Torn Between Aggressive Home Payoff or Investing

3.167%
I’d never pay that early

You know over the long haul your investments will beat that.
by bradpevans
Wed Jan 08, 2020 8:50 pm
Forum: Investing - Theory, News & General
Topic: 100% total stock index funds until I retire?
Replies: 72
Views: 7665

Re: 100% total stock index funds until I retire?

Given 1/3/5/10 year returns show positive there is more than normal 100% US Equity threads popping out. This seems fine as long as folks are comfortable handling 50%+ haircut with long recovery periods. Balanced 60/40 or 70/30 seems to weather storms bit better. I don't think that is correct. At 10...
by bradpevans
Fri Jan 03, 2020 10:11 pm
Forum: Investing - Theory, News & General
Topic: Why not stick with majority aggressive mutual funds as I approach retirement and throughout retirement?
Replies: 17
Views: 2188

Re: Why not stick with majority aggressive mutual funds as I approach retirement and throughout retirement?

SweetAeromotion wrote:
Thu Jan 02, 2020 7:35 pm
I would research sequence of returns risk.
^^^this. In draw-down you are never “buying low” you are only selling.
by bradpevans
Thu Jan 02, 2020 10:59 am
Forum: Personal Investments
Topic: Backdoor Roth: Questioning Traditional Advice on Step #1
Replies: 20
Views: 1355

Re: Backdoor Roth: Questioning Traditional Advice on Step #1

Nope, you are not missing anything. IMHO, the step is to avoid paying tax on the gains if any and not market timing. If you are okay with paying the tax you are fine. Taking a longer term view, one day of gain or loss is noise if Roth is not going to be used for many years. Of course, there are day...
by bradpevans
Wed Jan 01, 2020 4:33 pm
Forum: Personal Investments
Topic: Dividends not working how I thought they did.
Replies: 69
Views: 10566

Re: Dividends not working how I thought they did.

I recently discovered dividend Investing wasn’t exactly working the way I thought it did. I assumed a $500 dividend payment was placed on top of my net asset value ($100,000 in account plus div. payment =$100,500). Instead I discovered it worked with the net asset value dropping to 99,500 + the $50...
by bradpevans
Mon Dec 30, 2019 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: How to maximize employer match in 401k?
Replies: 20
Views: 883

Re: How to maximize employer match in 401k?

Mikel104 wrote:
Mon Dec 30, 2019 10:47 pm
So in summary I could contribute 70% each paycheck (reach yearly limit early) and still get the full benefit of employer match.
That seems reasonable..but check your plan (
and its a good bet you can’t do 70%; check your plan)
by bradpevans
Sun Dec 29, 2019 4:05 pm
Forum: Personal Investments
Topic: Delay SS or Have a Higher Portfolio Balance
Replies: 11
Views: 1089

Re: Delay SS or Have a Higher Portfolio Balance

The interesting thing is the common wisdom says to wait until 70 to take SS, the advantage being its maximum payment. And doing that would yield me 32% more if I delay starting at my FRA (age 66) and wait until 70. Thing is, in calculating my living expenses going forward, accounting for inflation ...
by bradpevans
Sun Dec 29, 2019 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: tax minimization plan
Replies: 1
Views: 322

Re: retirement draw down/spend plan sanity check

Roth conversion comes to mind

Very soon you will have: pension + 2 SS + RMD

at most 85% of SS is taxable so a dollar in SS is worth more than a dollar in 401

Delaying SS leaves more room for conversion .. of course you still need to fund your lifestyle AND the taxes on converted amounts
by bradpevans
Mon Dec 23, 2019 8:50 am
Forum: Personal Investments
Topic: Fund Roth or pay off student loans?
Replies: 17
Views: 664

Re: Fund Roth or pay off student loans?

Recently payed off 2 student loans. $1,800 at 5% and $1,300 at 5.5%. I have a $4,200 student loan left at 4.2% and another one for $2300 at 3.6%. I have the money to pay it off and forget about it. Or should I contribute enough to my 2019 Roth IRA and pay off the loan slowly? I have no credit card ...
by bradpevans
Sun Dec 22, 2019 2:46 pm
Forum: Personal Investments
Topic: Roth Coversion or a IRA Distribution
Replies: 8
Views: 529

Re: Roth Coversion or a IRA Distribution

Some view market downturns as a good time to convert to Roth
Convert the same number of *shares* for less taxes

Selling / spending / converting are three rather different actions ...
by bradpevans
Sun Dec 22, 2019 2:28 pm
Forum: Personal Investments
Topic: Concerned about high valuations in tech stocks
Replies: 11
Views: 713

Re: Concerned about high valuations in tech stocks

I have a large portion of my taxable account assets in the vanguard mega cap growth etf which contains a high percentage of tech stocks. I am now getting concerned about valuations after many years of outperformance. If I held this in a roth account, I would sell some. It looks like I am "stuck" wi...
by bradpevans
Sun Dec 22, 2019 2:16 pm
Forum: Investing - Theory, News & General
Topic: Is there ever a good time to sell and lock in ?
Replies: 84
Views: 6185

Re: Is there ever a good time to sell and lock in ?

On the way up the the only time you know you *should* have sold is after fact: only after the peak is the pullback (otherwise it keeps climbing) When it’s sliding down the only way you know you should buy back in is when it reverses and goes back up So, unless you know IN ADVANCE when these will hap...
by bradpevans
Fri Dec 20, 2019 11:28 am
Forum: Personal Investments
Topic: Wait Until Full Retirement Age for SSI or Apply at Age 65 ?
Replies: 28
Views: 2077

Re: Wait Until Full Retirement Age for SSI or Apply at Age 65 ?

Dwight: First off, You are setting up a false choice because your SS benefit goes up every month that you delay claiming. It isn’t “now or 66 years 2 months”, you can claim any month you choose. If you have $550,000 in your retirement portfolio and you can live comfortably on, say, $3000 a month th...
by bradpevans
Thu Dec 19, 2019 10:54 pm
Forum: Personal Investments
Topic: How do you get to the max of the Mega Backdoor 401k?
Replies: 7
Views: 853

Re: How do you get to the max of the Mega Backdoor 401k?

whodidntante wrote:
Thu Dec 19, 2019 7:16 pm
Ask for a $41,667 raise. :twisted:
Or convince them to increase the match ... to the tune of $10,000
by bradpevans
Wed Dec 18, 2019 12:08 pm
Forum: Personal Investments
Topic: Can I Retire?
Replies: 63
Views: 8091

Re: Can I Retire?

How does selling your high-return stock and paying off your low interest mortgage increase the success probability for you? Simple numbers. These are NOT the OP numbers. $1M invested, $100k mortgage. Payment $6k / yr. Two options: - 4.5% withdrawal on $1M for $45k / yr. $39k / yr to live on. - Payo...
by bradpevans
Tue Dec 17, 2019 1:25 pm
Forum: Personal Investments
Topic: Unusual need to book a smallish capital loss by year-end
Replies: 29
Views: 2095

Re: Unusual need to book a smallish capital loss by year-end

Earlier this year I received an unexpected long term capital gain from an inheritance. I have an Obamacare health plan which has a 2019 maximum allowable Adjusted Gross Income (AGI) of 48,500 in order to receive a premium subsidy. In order to avoid having to repay my 2019 premium subsidy (amounting...
by bradpevans
Tue Dec 17, 2019 1:23 pm
Forum: Personal Investments
Topic: Should I pay off mortgage or invest?
Replies: 25
Views: 1888

Re: Should I pay off mortgage or invest?

Tax Cuts and Jobs Act has essentially made your mortgage interest not deductible. So you are paying 4.5% after-tax interest rate on the mortgage, or at a 22% federal tax rate, a before-tax equivalent of 5.77%. Paying off the mortgage, for you, is the equivalent of earning RISK-FREE 5.77%, and a TAX...
by bradpevans
Tue Dec 17, 2019 1:17 pm
Forum: Investing - Theory, News & General
Topic: Recommendations of 100% stock lately
Replies: 246
Views: 18457

Re: Recommendations of 100% stock lately

My general advice is to hold SOME bonds at all ages, even if only 10%. Maybe I'm advising people to have a drag on their portfolios. Thoughts? People chasing performance is nothing new. They'll learn their lessons. Some might be more expensive than others. Being in accumulation phase, I like bonds....
by bradpevans
Fri Dec 13, 2019 5:45 pm
Forum: Investing - Theory, News & General
Topic: Recommendations of 100% stock lately
Replies: 246
Views: 18457

Re: Recommendations of 100% stock lately

My general advice is to hold SOME bonds at all ages, even if only 10%. Maybe I'm advising people to have a drag on their portfolios. Thoughts? People chasing performance is nothing new. They'll learn their lessons. Some might be more expensive than others. Being in accumulation phase, I like bonds....
by bradpevans
Thu Dec 12, 2019 2:18 pm
Forum: Personal Investments
Topic: Safest 4% Return- WWYD?
Replies: 47
Views: 4979

Re: Safest 4% Return- WWYD?

Got a family member with a mortgage?

Might loan them a chunk ... at 4% (a bit high in today's market but in the ballpark)

some might consider that risk free others might say extremely high risk
by bradpevans
Thu Dec 12, 2019 2:13 pm
Forum: Personal Investments
Topic: Taking Social Security at 62 and Investing It
Replies: 54
Views: 4551

Re: Taking Social Security at 62 and Investing It

Reasons for early: spouse SS is the larger poor health / life expectancy "need" the money (but many will say keep working then) Downside to early: less room for Roth conversion larger strain on non-SS sources (during de-accumulation phase) smaller payments might 'hurt' if you live longer than expect...
by bradpevans
Sun Dec 08, 2019 9:12 pm
Forum: Personal Investments
Topic: Invest in bonds vs. prepay mortgage
Replies: 168
Views: 7335

Re: Invest in bonds vs. prepay mortgage

bradpevans wrote:
Sun Dec 08, 2019 4:36 pm
Another perspective: where will the money go once the mortgage is paid off: if it’s going to equities, that (to me) suggests NOT paying it off early

Compounding over time is your friend. sooner beats later
by bradpevans
Sun Dec 08, 2019 4:36 pm
Forum: Personal Investments
Topic: Invest in bonds vs. prepay mortgage
Replies: 168
Views: 7335

Re: Invest in bonds vs. prepay mortgage

Another perspective: where will the money go once the mortgage is paid off: if it’s going to equities, that (to me) suggests NOT paying it off early

Compounding over time is your friend. sooner bears later
by bradpevans
Wed Dec 04, 2019 9:13 pm
Forum: Personal Investments
Topic: Seeking lump sum v annuity comments
Replies: 13
Views: 777

Re: Seeking lump sum v annuity comments

I did run the numbers there as well as other places. Immediate annuities is 1k/month less than what I'm being offered. The other SLIA sites are the same result. Thanks for you comment though It’s a multidimensional decision. Lump sum gives you the guaranteed amount up front...but you might squander...
by bradpevans
Wed Dec 04, 2019 2:45 pm
Forum: Investing - Theory, News & General
Topic: WHY, exactly or generally, are 401K's designed/managed the way they are? (SPD, choices, matches, rules, etc...)
Replies: 10
Views: 568

Re: WHY, exactly or generally, are 401K's designed/managed the way they are? (SPD, choices, matches, rules, etc...)

You may find this interesting (or aggravating) https://www.youtube.com/watch?v=JhW0uXlOQJs My recollection is that they could replace pensions. Pensions are both risk and record-keeping concerns for the megagcorp. The specific 401k options in a given plan may relate to the relationship between your ...
by bradpevans
Wed Nov 13, 2019 12:13 pm
Forum: Personal Consumer Issues
Topic: Saving seats on Southwest
Replies: 210
Views: 12507

Re: Saving seats on Southwest

I was thinking people bashing SW must have never been on Spirit. The last time I took Spirit, the plane looked very new and none of the seats reclined. That was my last flight on Spirit. I love Spirit. After getting done with the nickle and dime on the site to get the seats assigned and pay for a c...
by bradpevans
Tue Nov 12, 2019 9:51 pm
Forum: Personal Investments
Topic: Roth 401K or Taxable
Replies: 53
Views: 2789

Re: Roth 401K or Taxable

I am actually considering pairing down our taxable account in 2020. My wife is not working and our marginal tax rates are lower than they may ever be. Sell $50k of taxable (over some period) with minimal gains, put it in my checking account (replace some paycheck). Max pre-tax 401k and stuff as muc...
by bradpevans
Mon Oct 28, 2019 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage payoff
Replies: 55
Views: 4342

Re: Mortgage payoff

Wow...so many questions...don't want yo give too many details. This is 401k pre-tax $. Our balance is $250k. By calculations I can pull $168k, pay the tax from that leaving sufficient funds to pay half, and then pay the remaining Jan 2020. We are currently at 22%, and as long as we stay under the m...
by bradpevans
Mon Oct 28, 2019 1:33 pm
Forum: Personal Consumer Issues
Topic: Window well problems
Replies: 10
Views: 798

Re: Window well problems

my first thought is that the water from the pump is not getting far enough away from the house (or far enough away from the window well). Our house had a similar issue (moisture pushing basement wall in). The "water out" line wasn't working correctly, so the water was more or less doing a re-circula...
by bradpevans
Sun Oct 27, 2019 7:06 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30512

Re: Total stock market or individual stocks?

michaeljmroger: I find it difficult to believe that it can be advantageous to sell a very tax-efficient total stock market index fund (plus pay the capital-gain tax) and then attempt to replicate a total stock market fund by buying individual stocks. Please run this by a reliable tax-accounting fir...
by bradpevans
Sat Oct 26, 2019 4:13 pm
Forum: Personal Investments
Topic: Retiring at 62
Replies: 17
Views: 2631

Re: Retiring at 62

I will be 62 next may. I currently have 752000 in my 401k. I will be eligible for a 1000.00 pension and 1750.00 in social security. I am thinking of withdrawing 2000 a month from my 401k. This would give me 4750.00/month. I am currently living off 3750.00 /month. Even having to purchase health insu...
by bradpevans
Thu Oct 24, 2019 11:14 am
Forum: Personal Investments
Topic: Semi-seasoned Boglehead looking for review
Replies: 15
Views: 1797

Re: Semi-seasoned Boglehead looking for review

On the Taxable gains you may wish to tax GAIN harvest.
Essentially you sell and buy right back, re-establishing your basis at today's price.
Tax impact on the gain, yes. But at 0%....
by bradpevans
Fri Oct 18, 2019 12:36 pm
Forum: Personal Investments
Topic: Trad IRA & Mega Back Door Roth?
Replies: 17
Views: 1296

Re: Trad IRA & Mega Back Door Roth?

At age 37 should I get my head and hands wrapped around this now? Or is this more of a strategy that I would deploy when I get closer to retirement? It is definitely better to figure it out earlier rather than later. You're only able to do things like Mega Backdoor Roth IRA if you're working at an ...
by bradpevans
Sat Oct 12, 2019 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Should I invest in a ski in / ski out condo?
Replies: 50
Views: 5912

Re: Should I invest in a ski in / ski out condo?

It’s a lifestyle decision rather than an investment. Many things in life are lifestyle choices: how much to spend on clothes, on food, on cars, on vacations

For me (and I LOVE skiing) my concern would be that you are somewhat restricted to “that” resort. But if that’s where you always go...
by bradpevans
Fri Oct 11, 2019 9:03 pm
Forum: Personal Investments
Topic: Roth conversion
Replies: 10
Views: 1144

Re: Roth conversion

I’m 66 and retired. When I start taking SS at around 69 I’ll be able to meet all my needs + on pension + SS (120K) The mandatory RMDS from my non-Roth IRA will definitely move me into more taxable environment I’m thinking of converting some of my current IRA to Roth IRA over the next 3 years to hel...
by bradpevans
Fri Oct 11, 2019 8:59 pm
Forum: Personal Investments
Topic: Still contribute to my ROTH IRA?
Replies: 17
Views: 1929

Re: Still contribute to my ROTH IRA?

I just was forced to retire at 67. The last 15 years I just contributed to my Roth 401K - and I thank me for doing just that maxing out my contributions. I do not want to pay the tax man - and it makes a big difference when u retire to have much more in a Roth - than in a traditional IRA, in my vie...
by bradpevans
Tue Oct 08, 2019 7:51 pm
Forum: Personal Investments
Topic: TLH: What Winner to Sell to Use the Loss?
Replies: 5
Views: 593

Re: TLH: What Winner to Sell to Use the Loss?

I am sure I am not the first Boglehead who has had a secret vice and is determined to reform. In my case, the dirty secret has been BRSIX (Bridgeway Ultra-Small Company Market), a microcap fund whose tax inefficiency has long bothered me. I recently realized that given its poor performance, I could...
by bradpevans
Mon Oct 07, 2019 9:41 pm
Forum: Personal Investments
Topic: Currently invested in 100% stock
Replies: 138
Views: 16479

Re: Currently invested in 100% stock

In any case if a person wants "protection" from loss of money when stocks fall, then you get that in proportion to the degree you don't invest in stocks. However, the picture is not complete. Investing in stocks is an evolution over time. You can't think only of a one time event without considering...
by bradpevans
Mon Oct 07, 2019 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Capital website?
Replies: 26
Views: 2982

Re: Personal Capital website?

sonosoldi3112 wrote:
Mon Oct 07, 2019 9:18 pm
Yes .. I use PC .. love it ... some here do not wish to share passwords but I find the site invaluable.
Very happy personal capital and it’s free. You will get calls and emails trying to sign you up for their services but you’re under no obligation to do so
by bradpevans
Sat Oct 05, 2019 9:11 am
Forum: Personal Investments
Topic: IRA to Roth conversion
Replies: 9
Views: 1369

Re: IRA to Roth conversion

I took a year off work this year to pursue some personal goals. Thus no income for 2019. I believe this is an ideal time to convert funds from an IRA to Roth, correct? Obviously the goals is to minimize taxes so I'll figure out the tax brackets and convert as much as I can. My main question - Can I...
by bradpevans
Fri Oct 04, 2019 7:28 pm
Forum: Personal Investments
Topic: IRA to Roth conversion
Replies: 9
Views: 1369

Re: IRA to Roth conversion

I took a year off work this year to pursue some personal goals. Thus no income for 2019. I believe this is an ideal time to convert funds from an IRA to Roth, correct? Obviously the goals is to minimize taxes so I'll figure out the tax brackets and convert as much as I can. My main question - Can I...
by bradpevans
Wed Oct 02, 2019 10:20 am
Forum: Personal Investments
Topic: Mega backdoor right for me?
Replies: 9
Views: 608

Re: Mega backdoor right for me?

+1 to EnjoyIt’s recommendation. “Indirectly” means filling out the entire $62k space with t401k or r401k for the first $25k, and the next $37k into the MBR (less employer match, of course). Even if that means the paycheck is essentially $100 or so for the entire two weeks /15 days. Live off the tax...
by bradpevans
Wed Oct 02, 2019 8:12 am
Forum: Personal Investments
Topic: Mega backdoor right for me?
Replies: 9
Views: 608

Re: Mega backdoor right for me?

If your income / lifestyle allow it, i think its the way to go. Once you fill your 19K/25K, your options are: spend it invest in taxable invest in After Tax, move to Roth With taxable you get: Tax Loss / Tax Gain Harvest, 15% (or 20 or 23.8) LTCG With Roth you lose the Harvesting options, and you ha...
by bradpevans
Tue Oct 01, 2019 7:55 pm
Forum: Personal Consumer Issues
Topic: Non stick pan preference?
Replies: 46
Views: 3974

Re: Non stick pan preference?

We like the pair of Calphalon Unison pans we bought in 2015 - they've held up far better than other pans we've bought. The nonstick finish still looks new after four years of frequent use. The price on Amazon was about $50 for the pair, which was a steal. It's now $135. I have the Calohalon Elite s...
by bradpevans
Tue Oct 01, 2019 12:33 pm
Forum: Personal Investments
Topic: When to Tax loss harvest & portfolio benchmarking
Replies: 10
Views: 1207

Re: When to Tax loss harvest & portfolio benchmarking

I have 2 questions, unrelated 1) I inherited a stock which was passed on to me which had already had a huge decline from $100k to $8k (unfortunately my granny had a diff investing theory as I :oops: ), I am able to recognize the loss for tax loss harvesting as I was able to transfer it in-kind with...
by bradpevans
Tue Oct 01, 2019 12:27 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth through Fidelity
Replies: 22
Views: 2410

Re: Mega Backdoor Roth through Fidelity

For those of you who partake in the Mega Backdoor Roth through Fidelity, would you mind detailing your investments and process for contributions and conversions? I currently have a 401K account, a Brokerage Link account, and a Brokerage Link - Roth account through Fidelity. I originally intended to...
by bradpevans
Tue Oct 01, 2019 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Taking Capital Gains in a Low Income Year
Replies: 23
Views: 2625

Re: Taking Capital Gains in a Low Income Year

Scenario: Make 5-10k income for year. Next year expect to make significantly more income. Have 2 funds with 7k long term capital gains and 4k short term capital gains. Should I sell 2 funds and consolidate to Prime Money Market Fund? (These are LT TaxExempt Bond Funds I would like to consolidate fo...