Search found 160 matches

by bradpevans
Fri Jun 22, 2018 9:13 pm
Forum: Investing - Theory, News & General
Topic: Heavy in equities?
Replies: 18
Views: 1639

Re: Heavy in equities?

One of the difficult things for someone like me, who places very little faith in old US historical data for predicting future returns, is setting an diversified asset allocation. I've ended up with a 40-60 mix (investable assets) in the past year, but I do so with the knowledge that I'll never have...
by bradpevans
Fri Jun 22, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 44
Views: 3038

Re: How much of your taxable holdings is unrealized capital gains?

I think this is very relevant- especially for planning expenses. It can have huge implications on Roth conversions in low income years. In those years the ability to extract sufficient money but with lesser gains means more Roth space at the same standard of living YEP... Many of us can't get giddy...
by bradpevans
Fri Jun 22, 2018 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: State tax on 401k contributions - what happens if you move?
Replies: 15
Views: 717

Re: State tax on 401k contributions - what happens if you move?

This is a form of "geographic arbitrage". It can make a big difference. Some states have no state income tax (like Florida). Some have generous state exemptions on retirement-type income (like Georgia.) Some states have estate taxes levied on fairly small estates. Mr. Google can readily supply a lo...
by bradpevans
Fri Jun 22, 2018 7:42 am
Forum: Investing - Help with Personal Investments
Topic: 401k Roll Over Into TIRA or ROTH IRA?
Replies: 10
Views: 550

Re: 401k Roll Over Into TIRA or ROTH IRA?

I would advise you to look at this again in November/very early December. By then you should have a good sense of your 2018 W2 income. Roth conversions would be additional income. W2 income would probably be taxed 'along the way' so the tax hit will depend on how much Roth you convert. You would the...
by bradpevans
Wed Jun 20, 2018 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 44
Views: 3038

Re: How much of your taxable holdings is unrealized capital gains?

I think this is very relevant- especially for planning expenses. It can have huge implications on Roth conversions in low income years. In those years the ability to extract sufficient money but with lesser gains means more Roth space at the same standard of living
by bradpevans
Wed Jun 20, 2018 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Amazon?
Replies: 17
Views: 1216

Re: Selling Amazon?

I've hung onto all my individual positions unless or until there's an opportunity to harvest losses and doing so otherwise makes sense to me in light of other tax activity I'm considering or have previously executed during the year. Almost all new money goes into total market index, international i...
by bradpevans
Wed Jun 20, 2018 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Fund in Taxable / Large Unrealized Gain Question
Replies: 13
Views: 792

Re: Target Date Fund in Taxable / Large Unrealized Gain Question

I found this forum a little over a year ago and it has been a tremendous help in getting my financial affairs in order. I can't thank all of you enough, and I don't think a day (or a few days) go by without me checking in for a few minutes. Current income in NJ is roughly $275k, so not sure exact t...
by bradpevans
Tue Jun 19, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: Advice on Roth conversions
Replies: 19
Views: 1302

Re: Advice on Roth conversions

Thanks, couple more questions: (1) Since the 12% bracket tops out at $77,400K, what you are saying is that I can roll over $77+K while remaining in this bracket. (2) What are the implications of the expected large LTCGs (if any)? As previously stated, I have $300K+ of LTCG for the next 3 years... t...
by bradpevans
Tue Jun 19, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: Advice on Roth conversions
Replies: 19
Views: 1302

Re: Advice on Roth conversions

As noted, you can roll (IRA -> Roth) up to the 77,400 at the 12% rate. Your LTCG rate will be 0 or 15 or 20, depending on income levels. At some level the 15% LTCG rate becomes 20%, so that may impact your strategy You may want a spreadsheet where you can consider various amounts of conversions and ...
by bradpevans
Sat Jun 16, 2018 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie: How should we invest taxable account & Roth conversions - 1 year to retire
Replies: 7
Views: 669

Re: Newbie: How should we invest taxable account & Roth conversions - 1 year to retire

If yiu need funds over the next five years they should be pretty conservative (bonds cd tips etc) As for the Roth question, the goal is not so much to reduce RMDs. The goal is to pull them out now at a lower tax rate than if you pulled them out later This will depend of course on your expenses, Soci...
by bradpevans
Sat Jun 16, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax Strategy
Replies: 7
Views: 1036

Re: Capital Gains Tax Strategy

Consider the situation where you will be liquidating a good chunk of (Vanguard mutual fund) stocks in the near future (in my case for a home down-payment). What tax strategy would you choose for selecting which shares to sell? 1) Minimize tax rate (sell only long-term capital gains with the lowest ...
by bradpevans
Sat Jun 16, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax Strategy
Replies: 7
Views: 1036

Re: Capital Gains Tax Strategy

Consider the situation where you will be liquidating a good chunk of (Vanguard mutual fund) stocks in the near future (in my case for a home down-payment). What tax strategy would you choose for selecting which shares to sell? 1) Minimize tax rate (sell only long-term capital gains with the lowest ...
by bradpevans
Fri Jun 15, 2018 8:45 am
Forum: Investing - Help with Personal Investments
Topic: 401 k to. Roth rollover - min taxes?
Replies: 15
Views: 852

Re: 401 k to. Roth rollover - min taxes?

I have a 401k plan. I would like to rollover (or partial rollover) my 401k to a Roth 401k my plan allows it). I have about $40k in the plan I have maybe $2k capital gains and interest income a year. No w2 income for the next 3 years (going back to college). My parents will claim me as a dependent (...
by bradpevans
Fri Jun 15, 2018 8:42 am
Forum: Personal Finance (Not Investing)
Topic: can we afford to spend $20K on travel annually
Replies: 89
Views: 6631

Re: can we afford to spend $20K on travel annually

After reaching middle age, my philosophy about life has changed from saving as much as possible to enjoy life a bit. Travel is always my passion but I have cut back on that area for the last five years since my first child was born. Now kids are old enough to travel and I am itchy for doing that ag...
by bradpevans
Thu Jun 14, 2018 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 68
Views: 6300

Re: Taking $1M+ Long Term Capital Gains

Now I understand a bit more. If my income ( married filing joint) is more than $600K, then I fall under 37% tax bracket. Let's assume that I earn $601K, then I fall under 20% long term capital gains tax. So would all my capital gains be taxed at 20%? This does not make sense as it is better to earn...
by bradpevans
Thu Jun 14, 2018 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Cash, getting to it
Replies: 8
Views: 942

Re: Cash, getting to it

I always have invested my money, so I don't have cash hanging out at all. Just recently, I bought a car and had to sell some shares in order help pay for it. The shares had appreciated about 47% since February 2016 when I bought them. At the time I bought them, I had no particularly goal for the sh...
by bradpevans
Thu Jun 14, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 68
Views: 6300

Re: Taking $1M+ Long Term Capital Gains

I have accumulated over $2M LT CG. What is the best strategy to take the gains ? I am thinking 2018 will be the last bull year and I would like to unwind soon. What is the optimum LT CG that I should take in a year keeping in mind the tax brackets? The gains are in personally managed individual sto...
by bradpevans
Wed Jun 13, 2018 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Contribution for Married Couples
Replies: 5
Views: 514

Re: 401K Contribution for Married Couples

Hello Bogleheads! First, thank you in advance for taking the time to read this and responding! My wife and I max out our ROTH IRAs and we each have a 401K account. Wife has T401K and R401K options and I have just T401K. My 401K returns are awful compared to my wife's so we decided we will contribut...
by bradpevans
Tue Jun 12, 2018 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: Investing when someone else gets all dividends
Replies: 80
Views: 4763

Re: Investing when someone else gets all dividends

Take into account a man with children remarries. He wants to leave everything he has to his children. But, he feels an obligation to take care of his second wife so he is going to give her the dividends until she dies. I'm fairly certain this is what the situation was. He wants his children to cont...
by bradpevans
Tue Jun 12, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: Investing when someone else gets all dividends
Replies: 80
Views: 4763

Re: Investing when someone else gets all dividends

Ignoring the *uncertainty* in the returns, any portfolio choice (i.e. asset allocation) has implications for both the first recipient and the others upon passing. One can argue that total return = growth + dividends, but that's not the way it was written up. It *may* have been written that way exact...
by bradpevans
Sat Jun 09, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Drawdown Strategy
Replies: 5
Views: 775

Re: Help with Drawdown Strategy

See here: https://www.gocurrycracker.com/never-pay-taxes-again/ re 0% LTCG If you can pull this off, it basically turns your After-Tax (Brokerage) account into a Roth (you paid taxes before it was invested, and you may able to withdraw gains with no taxes) Depending on the other parts of your income...
by bradpevans
Fri Jun 08, 2018 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Investing or Paying Off The House
Replies: 14
Views: 1196

Re: Investing or Paying Off The House

Please help me think through an issue. I'll be receiving an after-tax bonus of $200-$225k in the next couple weeks and my wife and I are deciding whether to pay off our house or to invest the money in stock indexes. We've done well by investing aggressively, with a 90/10 stock-to-bond mix and I wan...
by bradpevans
Thu Jun 07, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Stick to the Plan... or Kick the Can? (Time to Rebalance)
Replies: 24
Views: 1580

Re: Stick to the Plan... or Kick the Can? (Time to Rebalance)

This basically comes down to if your IPS and your asset allocation are right for you. If there is a change in your need, ability and willingness to take risk then a change to your allocation may be appropriate. If your lack of willingness to rebalance is based in what the market is doing right now ...
by bradpevans
Wed Jun 06, 2018 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Remaining 401k Money - Lump Sum or DCA?
Replies: 7
Views: 356

Re: Remaining 401k Money - Lump Sum or DCA?

I would answer your question with a question, why not put it all in today? I suppose by putting it in on an ongoing basis hedges a little for a drop in valuations. I could do it now (cash is in the account), I guess I just didn't know if that made the most sense to do. My favorite analogy for this ...
by bradpevans
Wed Jun 06, 2018 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Decisions and purchases before retirement
Replies: 16
Views: 1509

Re: Decisions and purchases before retirement

So you would rather draw down your assets now rather than two years (or more) later. Okay. I understand what you are saying, I don't see the financial point. I'm spending my paycheck now to pay the mortgage vs. spending down my assets if retire while still having the mortgage. On this, I think the ...
by bradpevans
Wed Jun 06, 2018 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Decisions and purchases before retirement
Replies: 16
Views: 1509

Re: Decisions and purchases before retirement

All of those are basically cases of spending now versus spending later. I'm not sure I understand the point of spending down your assets now so as to have smaller cash flow needs later. My pre-retirement checklist included things that were subsidized (or just cheaper) while employed. Getting dental...
by bradpevans
Tue Jun 05, 2018 2:36 pm
Forum: Personal Consumer Issues
Topic: Should I replace my water heater?
Replies: 30
Views: 1353

Re: Should I replace my water heater?

Just bought a new house and the water heater is 15 years old but functional. It is located in the garage. As per inspection report: "The water heater is fifteen years old and may be nearing the end of its useful life; typical life expectancy of gas-fired water heaters is said to be ten to twelve ye...
by bradpevans
Tue Jun 05, 2018 2:03 pm
Forum: Personal Consumer Issues
Topic: Should I replace my water heater?
Replies: 30
Views: 1353

Re: Should I replace my water heater?

Just bought a new house and the water heater is 15 years old but functional. It is located in the garage. As per inspection report: "The water heater is fifteen years old and may be nearing the end of its useful life; typical life expectancy of gas-fired water heaters is said to be ten to twelve ye...
by bradpevans
Tue Jun 05, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Which bridge to SS?
Replies: 8
Views: 878

Re: Which bridge to SS?

DW has stopped working; I hope to do so around the end of the year. We have no pensions and plan to defer SS until 70, so we’ll draw heavily on assets for 7-8 years until then. I’m trying to pick the best strategy for that period. We’ve traditionally kept minimal taxable accounts and little cash. I...
by bradpevans
Tue Jun 05, 2018 6:39 am
Forum: Personal Finance (Not Investing)
Topic: Strategy - first meeting with estate lawyer soon
Replies: 13
Views: 1891

Re: Strategy - first meeting with estate lawyer soon

A bit of a stretch, but perhaps you could find a lawyer that would do this pro-bono (as part of his/her "giving back").
The next option would be a "one-time fee" set up
by bradpevans
Mon Jun 04, 2018 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: Advice Needed - Firing Advisor and Rolling Over 401K
Replies: 7
Views: 777

Re: Advice Needed - Firing Advisor and Rolling Over 401K

Does your new job allow *both* After Tax 401K *and* in service withdraws/rollover?
my megacorp does, which means i can fund a Roth (despite additionally have an IRA) even though I'm past the typical income limits
by bradpevans
Mon Jun 04, 2018 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone Use Fidelity's Brokerage Link - 401k
Replies: 11
Views: 781

Re: Anyone Use Fidelity's Brokerage Link - 401k

Hi, I was wondering if anyone is using Fidelity Brokerage Link as part of their employers 401k plan? Mine offers it but there's a $25 per quarter fee. Presumably it'll give me access to anything Fidelity has compared to the restricted, mostly high fee and target date funds, that are offered in my 4...
by bradpevans
Mon Jun 04, 2018 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocating within 401k - too much tinkering?
Replies: 3
Views: 213

Re: Reallocating within 401k - too much tinkering?

Wondering if there's negative implication to having several occurences of Realized Gain/Loss within 401k? Recently I have done a few exchanges within funds of 401k. My question is... when money is withdrawn in retirement, will there be difficulty calculating tax responsibility -or other things I mi...
by bradpevans
Sat Jun 02, 2018 7:21 pm
Forum: Investing - Theory, News & General
Topic: Asset Location Gets REALLY Complex [Tax-ajusted asset allocation]
Replies: 21
Views: 2177

Re: Asset Location Gets REALLY Complex

I think what is perhaps more relevant is how much you take out from what account and when. This has impact on your after-tax dollars which is of course what you have to live on
by bradpevans
Sat Jun 02, 2018 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about RSUs and asset allocation
Replies: 12
Views: 935

Re: Thinking about RSUs and asset allocation

Hey folks, I'd appreciate any advice about how to think about the impact of unvested RSUs to portfolio asset allocation. RSUs in this case is stock I will receive annually if I remain at my current employer and the actual value of these RSUs at vest time will be determined by my employer's stock pr...
by bradpevans
Sat Jun 02, 2018 5:57 pm
Forum: Personal Consumer Issues
Topic: June in Paris: What to (or not to) wear, see and do?
Replies: 53
Views: 2766

Re: June in Paris: What to (or not to) wear, see and do?

HongKonger wrote:
Sat Jun 02, 2018 3:23 pm
bradpevans wrote:
Sat Jun 02, 2018 3:18 pm
If you arrive early in the week, you may be able to get a pretty good deal on unlimited subway card. Google orange card Paris
Is carte d'orange too French for a non speaker to understand? :P
Touché. Actually I missed your post. I believe you must buy on M/T/Wednesday
by bradpevans
Sat Jun 02, 2018 3:18 pm
Forum: Personal Consumer Issues
Topic: June in Paris: What to (or not to) wear, see and do?
Replies: 53
Views: 2766

Re: June in Paris: What to (or not to) wear, see and do?

If you arrive early in the week, you may be able to get a pretty good deal on unlimited subway card. Google orange card Paris
by bradpevans
Fri Jun 01, 2018 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth
Replies: 9
Views: 832

Re: Back Door Roth

FiveK wrote:
Fri Jun 01, 2018 5:04 pm
Slow FIRE wrote:
Fri Jun 01, 2018 4:51 pm
I have always converted immediately. Are we supposed to wait?
No.
Waiting typically means gains and ultimately tax on those gains. The whole point of Roth is to pay the tax just once. Don’t wait
by bradpevans
Fri Jun 01, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: Really bad days (RBDs) and porfolio performance
Replies: 63
Views: 8467

Re: Really bad days (RBDs) and porfolio performance

Interesting to reread this thread from 2 years ago. I'd be interested in replicating something like this if anyone would like to suggest more RBD-esque strategies. Let me know. I'm actually surprised that many of the RBD strategies tested in this thread do not beat the baseline method. Here's why: ...
by bradpevans
Thu May 31, 2018 11:22 pm
Forum: Personal Consumer Issues
Topic: Sherwin Williams paint
Replies: 52
Views: 3515

Re: Sherwin Williams paint

I've used both SW and Behr and haven't noticed any difference. Maybe in a couple decades I might. The way I look at it, the paint is cheap compared to either my own effort or the cost of someone else's labor to apply it. Good paint also is much easier to use and looks better, so I think it's worth ...
by bradpevans
Thu May 31, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: What to do after maxing retirement contributions?
Replies: 31
Views: 3457

Re: What to do after maxing retirement contributions?

Unless you refinance to a lower payment, prepaying the mortgage doesn't help if you get yourself into trouble. You're still on the hook for the whole payment even if you're prepaid off hundreds of thousands of dollars. It makes more sense to me to make a mortgage prepayment account and then wait un...
by bradpevans
Tue May 29, 2018 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?
Replies: 129
Views: 13921

Re: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?

Paying off the mortgage would be a "guaranteed" 3.625% return, which exceeds the "safe" 30 year US bond yield right now. (Also, tax-deductibility of mortgage interest is now irrelevant to me after the recent tax reform due to the much higher standard deduction.) Plus, psychologically, I desire to s...
by bradpevans
Tue May 29, 2018 12:44 pm
Forum: Personal Consumer Issues
Topic: New roof - does this ridge vent look right?
Replies: 40
Views: 3566

Re: New roof - does this ridge vent look right?

Hi all. I had a new roof put on my house last month and I have some major concerns on the ridge vent. I know very little about roofing and less about ridge vents, but it does not look right to me. I would think, but am not sure, that the vent would be flush with the roof all the way across and now ...
by bradpevans
Tue May 29, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Can we retire in 2018?
Replies: 103
Views: 8449

Re: Can we retire in 2018?

Total: 1,529,000 SS (me): 44,492 a year at 70, reduced to 42,274 due to early retirement. SS (wife): 9936 a year at 62, reduced to 8,000 due to early retirement. No debt. We own our home and the Zillow Zestimate is 380,000. Only on Bogleheads would people tell someone with $1.5 million in invested ...
by bradpevans
Thu May 24, 2018 9:03 am
Forum: Personal Finance (Not Investing)
Topic: How do I tell if Roth conversions are worth the trouble?
Replies: 76
Views: 6090

Re: How do I tell if Roth conversions are worth the trouble?

IMO you are the *perfect* candidate for Roth conversion. As you noted, your taxable = basis + gains, so independent of what you pull out, you aren't taxed on all of it. While we all want our accounts to grow massively, once we are drawing dawn we would prefer it all to be basis, not gains. Keep your...
by bradpevans
Wed May 23, 2018 3:03 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: 504
Views: 30860

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

Thinking this over, I am wondering if it would be much better if all the calculations were done on real rather than nominal numbers. I don't know if I am using the correct terminology but the intent is to NOT take inflation or COLA in to account for the calculations and ASSUME that value of dollar ...
by bradpevans
Tue May 22, 2018 1:05 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA contributions during semi-retirement?
Replies: 14
Views: 765

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: 13
Views: 1039

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: 2547

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 ...