Search found 113 matches

by bradpevans
Tue May 22, 2018 1:05 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA contributions during semi-retirement?
Replies: 14
Views: 564

Re: Roth IRA contributions during semi-retirement?

I'm curious if those who semi-retire before age 59 1/2 and still earn a salary, do you still contribute to your Roth IRA? Or, did you stop contributing and instead use the money to pay for annual expenses? Of course it depends on your income levels, but you may find the income tax rates at this sta...
by bradpevans
Tue May 22, 2018 1:02 pm
Forum: Investing - Theory, News & General
Topic: Predicting income from investment
Replies: 9
Views: 369

Re: Predicting income from investment

We just financed our car purchase at 2.49% for 5 years. If I invest the same amount, say 40K, in VTSAX, what would be the the income from that investment at 5 years? Can one assume an 8% return on VTSAX based on past performance? Does that mean the 40K will earn 8% per year for the next 5 years, if...
by bradpevans
Mon May 21, 2018 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Pension and Sociai Security Impact on 4% Rule
Replies: 20
Views: 2347

Re: Pension and Sociai Security Impact on 4% Rule

I see many analyses in which the 4% rule is used as a guide to determine one's FIRE number. For example if your annual spending in $80K you needs $2M to consider a FIRE retirement. I realize that this is only a rule of thumb but I think it a useful one. What I do not see are many analyses in which ...
by bradpevans
Mon May 21, 2018 8:46 am
Forum: Investing - Theory, News & General
Topic: Dividend / no dividend index funds?
Replies: 30
Views: 2329

Re: Dividend / no dividend index funds?

You really have to think about where to hold dividend equities (or whether to hold them at all). Holding dividend funds in tax deferred space can be a terrible idea because you have now successfully converted qualified dividends to fully taxable income and will pay more taxes than if you held them ...
by bradpevans
Sun May 20, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: When I retire, what do I sell?
Replies: 11
Views: 2296

Re: When I retire, what do I sell?

DebiT wrote:
Sun May 20, 2018 6:07 pm
I found McClung’s book to be well worth the investment. Really helped explain a strategy for how to draw down
I’ve only read the free first three chapters but it VERY CLEAR that the asset allocation that got you there is NOT what you should do drawing down

read the book
by bradpevans
Sun May 20, 2018 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocation vs. taxable gains
Replies: 6
Views: 393

Re: Reallocation vs. taxable gains

I switched over to a Lazy Portfolio just over a year ago. I intended to re-allocate on an annual basis, but it would cause taxable gains. To avoid those taxes, I have been trying to use new contributions to re-balance my portfolio but they are not enough to be significant. For those of you who use ...
by bradpevans
Sun May 20, 2018 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a phrase for that?
Replies: 14
Views: 1094

Re: Is there a phrase for that?

Not quite sure what you mean. It sounds like you are asking about the situation where the portfolio value is sufficient to get you to FI at some point thereby not requiring additional savings. I'd call that a glider. Going sideways. Not spending not savings. I’m considering such a route (hobby job,...
by bradpevans
Sat May 19, 2018 10:13 am
Forum: Investing - Help with Personal Investments
Topic: Pension and Sociai Security Impact on 4% Rule
Replies: 20
Views: 2347

Re: Pension and Sociai Security Impact on 4% Rule

I am by no means an expert on the calculations. But one has to live on *post-tax* dollars, so that it a huge part of. Big pensions / SS means you may not be able to be in the 0% LTCG bucket, and RMDs after 70.5 further contribute to this. Two people may have post-tax / brokerage accounts both with 5...
by bradpevans
Sat May 19, 2018 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Tax related questions
Replies: 16
Views: 1190

Re: Tax related questions

I have some tax related questions regarding investments: 3) Stocks / RSUs: a. If you have stocks in Robinhood, or RSU from your company, your gains are taxed using STCG. Is this equivalent to ordinary income tax? And is state tax added on top of your ordinary income tax, when calculating STCG? b. S...
by bradpevans
Fri May 18, 2018 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Non-qualified Stock Options; when to sell?
Replies: 7
Views: 420

Re: Non-qualified Stock Options; when to sell?

The correct answer, for whomever is asked, is to diversify. But you know your company and we do not. I exercised and held options, paying the tax out of cash for many many years and even took out loans to do so. In the end It paid off like the lottery. But that's me. Did the "exercise and hold" do ...
by bradpevans
Fri May 18, 2018 9:26 am
Forum: Personal Consumer Issues
Topic: Debating whether to rebuild tractor or buy a new zero turn
Replies: 27
Views: 1417

Re: Debating whether to rebuild tractor or buy a new zero turn

Thanks all for the replies. I am going to explore the idea of repowering this tractor as that seems to be the most economical solution. My repair man said he did not want to install a used engine but will see if he is willing to install a restored engine. I just hope there are not any problems beca...
by bradpevans
Fri May 18, 2018 7:44 am
Forum: Investing - Help with Personal Investments
Topic: Tax related questions
Replies: 16
Views: 1190

Re: Tax related questions

I have some tax related questions regarding investments: 3) Stocks / RSUs: a. If you have stocks in Robinhood, or RSU from your company, your gains are taxed using STCG. Is this equivalent to ordinary income tax? And is state tax added on top of your ordinary income tax, when calculating STCG? b. S...
by bradpevans
Thu May 17, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 416
Views: 19847

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

So why do people keep on bringing the so called elephant in the room aka social security taxes whenever we are discussing retirement? After working for 40+ years, you have pretty much accepted the fact that you make money, you pay taxes. The discussion always seems to imply that gummit takes 85% of...
by bradpevans
Wed May 16, 2018 2:30 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9895

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

You may wish to roll sooner / contribute in high % and convert quickly. Any gains inside the after-tax bucket typically end up on the 401k side. Your intent is correct, but it is important to be precise when talking about employee after-tax contributions. After-tax contributions and pre-tax earning...
by bradpevans
Wed May 16, 2018 8:25 am
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9895

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

I contribute the max pre-tax then contribute after tax. At the end of the year I convert it to Roth. Goal is to hit 415(c) limits every year. You may wish to roll sooner / contribute in high % and convert quickly. Any gains inside the after-tax bucket typically end up on the 401k side. This means t...
by bradpevans
Fri May 11, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Better to Sell Shares appreciated 10% for Short Term Gain or Shares appreciated 30+% for Long Term Gain?
Replies: 10
Views: 1037

Re: Better to Sell Shares appreciated 10% for Short Term Gain or Shares appreciated 30+% for Long Term Gain?

Thanks to all of you, this is quite helpful. In the short run higher gain means higher taxes IF you expect your income to drop later that could move your LTCG rate to zero. That is when you would want to take the bigger gain On the losses,first they offset gains, then income (up to the $3000/year)....
by bradpevans
Fri May 11, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Deposit vs. Reinvest
Replies: 3
Views: 290

Re: Deposit vs. Reinvest

Dividends inside your Roth would be gains - you might run into the five year / 59.5 rules

That would apply independently of reinvest VS set aside in cash
by bradpevans
Fri May 11, 2018 6:42 am
Forum: Personal Finance (Not Investing)
Topic: DCA or lump sum from settlement fund to LifeStrategy
Replies: 9
Views: 703

Re: DCA or lump sum from settlement fund to LifeStrategy

While I like the Lump sum route, the article notes this (for those who go the systemic route) For those who choose the systematic approach, we suggest creating a disciplined program to invest the lump sum within a year. This structure ensures that cash is continually invested according to the target...
by bradpevans
Fri May 11, 2018 6:23 am
Forum: Personal Finance (Not Investing)
Topic: Need Input on My Early Retirement Plan.....
Replies: 45
Views: 5317

Re: Need Input on My Early Retirement Plan.....

If you can "ordinary income poor" your taxes will be low. In your *taxable* accounts, you may wish to break down the balance into basis and gains. For instance, if you withdraw 100,000 but the basis is 80,000, then: You get to live on 100,000. The 20,000 cap gains hit would be zero since your "ordin...
by bradpevans
Fri May 11, 2018 6:17 am
Forum: Personal Finance (Not Investing)
Topic: Aftertax 401K rollover to Roth IRA
Replies: 10
Views: 1056

Re: Aftertax 401K rollover to Roth IRA

Have Additional questions. Recap and clarification: - No longer working for megacorp but still retain 401(k) with megacorp; - Am now in 12% tax bracket; - 401K currently has ~$450K pretax portion and ~$6.5K aftertax portion; -Aftertax portion has ~$4.6K contribution and ~1.9K earnings; - The aftert...
by bradpevans
Thu May 10, 2018 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Advice from Pension Fund Manager - Should I listen?
Replies: 39
Views: 1702

Re: Investment Advice from Pension Fund Manager - Should I listen?

Good points. I wanted to clarify he suggested ONLY SELLING THE GAINS and not getting completely out. You guys are definitely talking me down from the ledge even though I am 30yrs out from retiring. Does he mean sell back to your initial stake (i.e. 5,000 now worth 7,000) or sell all holdings that a...
by bradpevans
Thu May 10, 2018 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: DCA or lump sum from settlement fund to LifeStrategy
Replies: 9
Views: 703

Re: DCA or lump sum from settlement fund to LifeStrategy

Receiving what is (for me) a large check from my company's profit-sharing plan. The settlement fund is Vanguard Federal Money Market Fund; I would like to move it to one (or maybe two) of the LifeStrategy funds. I've read a great previous thread on this topic ( https://www.bogleheads.org/forum/view...
by bradpevans
Thu May 10, 2018 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Payoff mortgage early or save?
Replies: 27
Views: 2984

Re: Payoff mortgage early or save?

This is exactly my viewpoint: I don't want to pay it *down* until i can pay it *off*, simply for cash flow reasons. I have 3.75 and itemize, so its about 3% net rate. Are you sure you are going to itemize in 2018? Many people who itemized in the past will not be itemizing in 2018. Fair point - and ...
by bradpevans
Thu May 10, 2018 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Payoff mortgage early or save?
Replies: 27
Views: 2984

Re: Payoff mortgage early or save?

I've always felt that, unless and until you can make one lump sum payment to eliminate the mortgage, you should hold on to extra cash. The bank isn't interested in the fact that you're 12 months ahead of where you should be on your mortgage; your payment is due every month on the 1st. Lose your job...
by bradpevans
Thu May 10, 2018 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Question
Replies: 22
Views: 2320

Re: Mortgage Payoff Question

Long time lurker but looking for advice on whether to get extremely aggressive with mortgage payoff. DW and I are mid 30s, have 2 kids (6 and 3) and are 3 years into a 30 year mortgage at 3.625%. There is currently $340,000 left on the mortgage. We currently both max our 401k and have plans to do s...
by bradpevans
Thu May 10, 2018 11:51 am
Forum: Personal Finance (Not Investing)
Topic: To Sell or Not to Sell
Replies: 15
Views: 1101

Re: To Sell or Not to Sell

Hello! I’ve been in some discussions with very close friend and their finances. They’ve made some ‘mistakes’ in their lives when it relates to money. One of the mistakes they’ve made is purchasing a house where they don’t see themselves living in 10-15 years from now. Before this gets into a rent v...
by bradpevans
Thu May 10, 2018 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Annuity value vs lump sum?
Replies: 4
Views: 443

Re: Annuity value vs lump sum?

So, one person said this seems to be a good deal assume that the funding looks solid at retirement. A few considerations: The workplace plan is part of your *benefits*, while the marketplace is the marketplace. It has been funded over time. Lump sum puts the risk (and return) on you. It also allows...
by bradpevans
Thu May 10, 2018 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6465

Re: Factors Suggesting One Should Buy SPIA

I can never understand why anyone would purchase a SPIA without a return of premium or 20 year period certain. The little bit of extra income lost to insure your heirs receive something in the event of an early post purchase demise seem very worth it. I suspect the SPIA purchase is NOT motivated by...
by bradpevans
Thu May 10, 2018 7:09 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6465

Re: Factors Suggesting One Should Buy SPIA

I can never understand why anyone would purchase a SPIA without a return of premium or 20 year period certain. The little bit of extra income lost to insure your heirs receive something in the event of an early post purchase demise seem very worth it. I suspect the SPIA purchase is NOT motivated by...
by bradpevans
Wed May 09, 2018 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: 25 Years Old. Need help. In the Guard. Currently having TSP trying to pay off debt then make plan for Roth IRA??
Replies: 27
Views: 1643

Re: 25 Years Old. Need help. In the Guard. Currently having TSP trying to pay off debt then make plan for Roth IRA??

I suggest two pieces
1) Invest to the match limit
2) Pay off all debt. Either by balance or buy interest rate, whatever gives you the greater motivation.

When that happens, make a new post seeking advice on what investments to make
by bradpevans
Wed May 09, 2018 12:25 pm
Forum: Investing - Theory, News & General
Topic: Rationale for placing high expected return funds in Roth rather than tIRA
Replies: 15
Views: 1079

Re: Rationale for placing high expected return funds in Roth rather than tIRA

Putting different funds in Roth vs Taxable or Traditional based on expected returns bothers me. Like, a lot. If you expect something to have a lower return, why are you buying it at all? IMHO you should put your higher expected return funds in both Roth and tIRA, and drop the lower expected return ...
by bradpevans
Wed May 09, 2018 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Pension. Lump sum or monthly payments.
Replies: 10
Views: 948

Re: Pension. Lump sum or monthly payments.

My MIL is retiring soon and trying to get her finances in a row. I am trying to help her but wanted your advice on how to handle her pension. She basically needs every dollar she has saved for her retirement so can't be risky in any way. She has the option of taking $442,853 (lump sum) or $2562/mon...
by bradpevans
Tue May 08, 2018 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Concerns about RMD for roth vs tIRA contribution
Replies: 37
Views: 1904

Re: Concerns about RMD for roth vs tIRA contribution

lepa71 wrote:
Tue May 08, 2018 6:53 pm
I believe that all 401k match always goes to the pre-tax side. This is because the employer wants to get their write off.
I believe the government wants their taxes 🤔
by bradpevans
Tue May 08, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Concerns about RMD for roth vs tIRA contribution
Replies: 37
Views: 1904

Re: Concerns about RMD for roth vs tIRA contribution

I don't know who old you are but I'm 46 and still have another 20-ish years to go. I still think at any age you should try to minimize the risk as much as you can. Lots of things may and probably will change but I'm just saying. I'm confused, which risk are you referring too? You can contribute 18....
by bradpevans
Tue May 08, 2018 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Living off Dividends of Vanguard Total Stock
Replies: 49
Views: 6479

Re: Living off Dividends of Vanguard Total Stock

What does everyone think of retiring when you can live off of the Dividends of the Vanguard Total Stock Market Index, and having 100% in stocks? it will work .. until it doesn't. In other words, the companies inside that fund *might* lower or drop their dividends completely. So, you have some 'dive...
by bradpevans
Tue May 08, 2018 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6465

Re: Factors Suggesting One Should Buy SPIA

I mean, nobody’s going to put all their money into an spia, right? That's exactly what people with pensions have done. They put 100% into a (deferred immediate) annuity. Just because the annuity is run by a public company or a government instead of an insurance company doesn't make it not an annuit...
by bradpevans
Tue May 08, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Back door ROTH IRA requires deductible or non deductible IRA?
Replies: 19
Views: 572

Re: Back door ROTH IRA requires deductible or non deductible IRA?

I am not asking the IRA contribution per year I am asking the limit on transfer from non deductible IRA funds to Traditional IRA I think you mean limit on transfer from non-deductible traditional IRA to Roth IRA. There is no limit on the amounts you can convert. So if I have $100,000 (principal + g...
by bradpevans
Tue May 08, 2018 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6465

Re: Factors Suggesting One Should Buy SPIA

QCD to allow (even) more Roth conversions before 70.5 Just for clarification (because these threads have a lot of readers), the impact of future QCDs after 70.5 can allow one to make bigger Roth conversions before 70.5. A QCD can only be made after age 70.5. Thanks for catching this. It should have...
by bradpevans
Tue May 08, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6465

Re: Factors Suggesting One Should Buy SPIA

Joe Tomlinson shows how delaying SS and adding a SPIA will positively affect a portfolio during retirement. I have been introduced to Joe at several SS research symposia. More recently I have been reading his research and am impressed. He also looks at going from 50 to 75% stock allocation and a re...
by bradpevans
Tue May 08, 2018 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Investment Plan
Replies: 24
Views: 2408

Re: Emergency Fund Investment Plan

OK, I'm probably going to get flamed for this but going to put it out there anyway . . . I don't have an "emergency fund", per se. Never have, never will. What I do have is a HELOC. It doesn't cost me anything. I can access it any time I want . . . .which has been never . . . it satisfies all the r...
by bradpevans
Sun May 06, 2018 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Pension Advice/Recommendation
Replies: 13
Views: 1437

Re: Pension Advice/Recommendation

With a lump sum you can herit the money to others

Doesn’t mean it’s a better choice, just part of the lanscape
by bradpevans
Fri May 04, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Two TLH Questions
Replies: 7
Views: 544

Re: Two TLH Questions

Hi, I've read that you can generate a wash sale by buying a stock 30 days before or 30 days after selling for a loss. I have two questions: If I buy a stock and it immediately goes down and I sell it, is that a wash sale? Doesn't seem like it? If I buy a stock in my ROTH, and then it immediately go...
by bradpevans
Thu May 03, 2018 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: Swollen Emergency Fund....What now?
Replies: 43
Views: 3182

Re: Swollen Emergency Fund....What now?

I am looking for something that will allow us to retain some control if our situation changes and we need the additional liquidity. So... are you saying you want a bigger emergency fund? No sir. I think that I should limit it at 60% of what it is now. I just don't want to gamble with my principal. ...
by bradpevans
Thu May 03, 2018 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: How to treat a mortgage in context of long term investment
Replies: 12
Views: 1190

Re: How to treat a mortgage in context of long term investment

If you are investing in taxable while holding a mortgage at 3.875%, you are indeed betting that your aftertax rerurns will be higher than 3.875% (you're paying the mortgage with after tax dollars). Investing and getting a higher return is harder than it might sound because you also have a sequence ...
by bradpevans
Thu May 03, 2018 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: When to buy a new car (need to find a Boglehead way)
Replies: 34
Views: 2673

Re: When to buy a new car (need to find a Boglehead way)

New cars come with *guaranteed* payments Old cars come with *random* payments (i.e. when they break down) Given sufficient miles, that car is worth way more to you than anyone else. I took my Grand Prix to 249,882 (really wanted that quarter million) Our Ford Edge is at 210,000 New cars are great. c...
by bradpevans
Thu May 03, 2018 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Invest lumpsum, "cost averaging" or "wait for the crash"
Replies: 56
Views: 3574

Re: Invest lumpsum, "cost averaging" or "wait for the crash"

I have a large amount of money available to invest in the stock market after selling a large chunk of single stock I owned.I got good advise to do that here . My question now is how to get the sum invested back into the stock market since the market is really hot right now. Do note, my mind is fair...
by bradpevans
Thu May 03, 2018 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Restricted Stock Units and Stock Options Strategy
Replies: 19
Views: 1532

Re: Restricted Stock Units and Stock Options Strategy

I hit "sell" on the RSUs this morning. Question on the options or maybe a clarification from above (made up numbers): I have 100 shares at a strike price of $100. The market price is $200. I was given these 3 years ago, and I can sell them today. I can wait up to 10 years to sell (7 years from now)...
by bradpevans
Thu May 03, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: advice about mortgage options
Replies: 14
Views: 774

Re: advice about mortgage options

We were in a similar dilemma and decided on a 30 year. At the time it was a choice between 30 year 4.25% and 15 year 3.75%. What it came down to was that after 15 years, if we saved the difference in payment every month and made a 6.6% nominal return, we would be able to sell everything, pay LTCG t...
by bradpevans
Wed May 02, 2018 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Restricted Stock Units and Stock Options Strategy
Replies: 19
Views: 1532

Re: Restricted Stock Units and Stock Options Strategy

Management or Incentive stock options that are in the money are leveraged holdings in the underlying stock that cost you nothing to buy and can't fall below zero value. On the whole the longer they are held the more they appreciate on average. But I think the question really is whether they appreci...
by bradpevans
Tue May 01, 2018 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Implications if Stop Reinvest Dividends
Replies: 13
Views: 1328

Re: Tax Implications if Stop Reinvest Dividends

Retired. Have "enough." Taking RMDs from Keogh and IRAs. Automatic Reinvesting Dividends in non-retirement index funds. Index Funds in Vanguard include 2 tax-exempt bond funds + 2 stock funds. For many years, starting in 1990, I put $500 per month into each of these funds. Vanguard's cost basis rep...