Search found 314 matches

by bradpevans
Tue Sep 25, 2018 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Highly Compensated Employee - better to get paid $119k than $121k?
Replies: 4
Views: 1001

Re: Highly Compensated Employee - better to get paid $119k than $121k?

Most who hit 55K are either self employed
Or do 18.5 regular pre tax and then the rest by way if after tax 401k. The 55k does include employer match
by bradpevans
Mon Sep 24, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Any reason to leave the 401(k) with previous employer open
Replies: 18
Views: 1559

Re: Any reason to leave the 401(k) with previous employer open

I roll to IRA - but my motivation is broader menu of investments, which is not typical for this forum
by bradpevans
Sun Sep 23, 2018 4:12 pm
Forum: Investing - Theory, News & General
Topic: For those who use a 2 year cash(like) buffer, how do you know when to use it?
Replies: 67
Views: 5388

Re: For those who use a 2 year cash(like) buffer, how do you know when to use it?

I think the best way to make my point is look at the article and you see that the 100% equity glide path almost does as well as the upward sloping glide paths. I get a very different takeaway from the article. Maybe it depends on your definition of "almost does as well". If you look at the table ju...
by bradpevans
Sun Sep 23, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Am I on track for retirement? Also: Simplify? Optimize?
Replies: 7
Views: 1358

Re: Am I on track for retirement? Also: Simplify? Optimize?

I think some concepts are confused Sequence of risk is only relevant when you are no longer adding money and/or withdrawing. In accumulating its nit relevant Tax loss harvest is only applicable in taxable. Just watch auto reinvest in other accounts (many hear direct dividend to a money market to avo...
by bradpevans
Sun Sep 23, 2018 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Credit score impact of high card balance
Replies: 6
Views: 379

Re: Credit score impact of high card balance

I recently made a high (for me) purchase on a credit card. Would there be any advantage to making a payment early before the statement date so that the utilization rate was lower at the end of the statement period? Example: Suppose I had a card with a credit limit of $10,000 and typically had month...
by bradpevans
Sun Sep 23, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: Funding a Roth IRA for 60+ Years
Replies: 7
Views: 1064

Re: Funding a Roth IRA for 60+ Years

Hello- First time poster and a bit intimidated, but I'm thankful for all the great info that I have learn thus far. My wife and I are in a fortunate position and I do not anticipate requiring our Roth IRA's to fund our retirements. I am in my 40's now and I believe we will be able to pass our Roth ...
by bradpevans
Sun Sep 23, 2018 8:06 am
Forum: Investing - Theory, News & General
Topic: For those who use a 2 year cash(like) buffer, how do you know when to use it?
Replies: 67
Views: 5388

Re: For those who use a 2 year cash(like) buffer, how do you know when to use it?

I think the best way to make my point is look at the article and you see that the 100% equity glide path almost does as well as the upward sloping glide paths. I get a very different takeaway from the article. Maybe it depends on your definition of "almost does as well". If you look at the table ju...
by bradpevans
Sat Sep 22, 2018 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying SS? How Long It Will Take for It to Pay Off?
Replies: 53
Views: 5085

Re: Delaying SS? How Long It Will Take for It to Pay Off?

But the decision [when to start SS benefits] should be made separately for each year. There's nothing special about one year. [1] The diagonal in the following table shows the one-year breakevens. But the table also shows the other combinations of yearly commencement of benefits. For example the br...
by bradpevans
Sat Sep 22, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Home Equity Line of Credit, keep or close?
Replies: 5
Views: 313

Re: Home Equity Line of Credit, keep or close?

You might offer them less and see if they bite

FWIW, my credit union HELOC has no fees
by bradpevans
Fri Sep 21, 2018 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring at 55 - regular 401k vs. ROTH 401k....which?
Replies: 10
Views: 1074

Re: Retiring at 55 - regular 401k vs. ROTH 401k....which?

Many plans allow you to withdraw (401) money without penalty before 59.5 IF you in fact retire from that company after age 55. You will want to know for certainty what the rules are in your case. That's not a plan thing. They can't allow withdrawing before 59-1/2 unless you have stopped working the...
by bradpevans
Fri Sep 21, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: Allocating 1/3 of Investable Assets to Roth Accounts
Replies: 35
Views: 1997

Re: Allocating 1/3 of Investable Assets to Roth Accounts

can someone explain to me why this should be a goal, or if it is based of some previous research? they are advocating 1/2 allocation to Roth in employer plan accounts and Roth conversions during working years for high income professionals. and contributing more during down market years still doesnt...
by bradpevans
Fri Sep 21, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: For those who use a 2 year cash(like) buffer, how do you know when to use it?
Replies: 67
Views: 5388

Re: For those who use a 2 year cash(like) buffer, how do you know when to use it?

I'm still in accumulation phase but thinking about the cash buffer/bucket for a market downturn. Those that have this buffer and retired and withdrawing, do you: 1. Draw from your equities (keeping AA intact)until the market reaches a certain percent below its high? What percentage, 10 or wait for ...
by bradpevans
Fri Sep 21, 2018 5:39 am
Forum: Personal Finance (Not Investing)
Topic: Pay-off or keep mortgage with 2018 interest deduction changes?
Replies: 17
Views: 1627

Re: Pay-off or keep mortgage with 2018 interest deduction changes?

We have an outstanding mortgage of approximately $325,000 at 3.5% by choice. we could pay off the mortgage but have chosen to invest the "extra" $325,000 with the belief that we can obtain a greater return than 2.66% So do you believe that you can obtain a greater return than 3.5% ? If so, then not...
by bradpevans
Thu Sep 20, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1314

Re: Roth 401k or Traditional?

Roth vs. Traditional is largely a matter of "tax rate in vs. tax rate out" Traditional "saves" you that rate now, but you "pay" some rate to get the money out. Roth you "pay" your (known) rate now, but you never pay again. For most, the traditional is better due to progressive tax rates: you "save" ...
by bradpevans
Thu Sep 20, 2018 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring at 55 - regular 401k vs. ROTH 401k....which?
Replies: 10
Views: 1074

Re: Retiring at 55 - regular 401k vs. ROTH 401k....which?

My company has us setup in a regular 401k with mass-mutual by default (with a 3% match). It looks like they also have a Roth 401k available. 1) Would my best bet be to put everything into the Roth 401k, then when I retire at 55, roll it into my M1 or Vanguard Roth IRA account to be able to draw fro...
by bradpevans
Thu Sep 20, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Paying off mortgage vs investing?
Replies: 20
Views: 1969

Re: Paying off mortgage vs investing?

Pre-paying a mortgage pros: - Savings on interest payments. Reduces total cost of ownership for the house. - Frees up cash flow after the house is PAID OFF. - Feels really good psychologically. It is much more difficult to go bankrupt if you don't owe anybody any money. - A mortgage is like a bond ...
by bradpevans
Thu Sep 20, 2018 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Automated Roth in plan conversions better than Mega Backdoor to Roth IRA?
Replies: 7
Views: 512

Re: Automated Roth in plan conversions better than Mega Backdoor to Roth IRA?

Hi all, I've been mulling doing a mega backdoor Roth for awhile (https://www.bogleheads.org/forum/viewtopic.php?f=1&t=257494&p=4088813#p4088813). I'm one of the lucky ones who's 401k plans include after-tax contributions, in-service transfers, no fees on transfers, and no limit on transfers. Today ...
by bradpevans
Thu Sep 20, 2018 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: Question on 401k After-Tax Conversion vs Savings
Replies: 6
Views: 311

Re: Question on 401k After-Tax Conversion vs Savings

I essentially had the same question several months ago, and that search led me to this forum! The closer you are to retiring and the more money you *already* have in taxable, the more the Roth makes sense. You give up Tax Loss Harvest (which is over-rated IMO), Tax Gain Harvest (under-rated, especi...
by bradpevans
Thu Sep 20, 2018 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 136
Views: 7836

Re: Physical Banking - Any benefits anymore?

I have a local credit union. Most of the time its direct deposit / phone deposit. But i have been able to: quickly get a Line of Credit (for overdraft protection) call a person to get a few checks printed as well as other things because the know me fees are low / zero depending on account set up. 50...
by bradpevans
Thu Sep 20, 2018 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Question on 401k After-Tax Conversion vs Savings
Replies: 6
Views: 311

Re: Question on 401k After-Tax Conversion vs Savings

Hi, My 401k allows after-tax contributions that can then be converted to the plan's "Roth In-Plan Conversion" space (different from contributions to the plan's Roth 401k). Earlier this year I converted about $7k of existing long-ago after-tax contributions. I have very little in Roths right now, be...
by bradpevans
Wed Sep 19, 2018 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Another mortgage repayment thread..
Replies: 30
Views: 2212

Re: Another mortgage repayment thread..

At 2.75 I would not. Pay it off with future dollars. Keep invested
by bradpevans
Wed Sep 19, 2018 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 83
Views: 7182

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

Nope

I look at it this way: if you invest that many will grow and grow and grow, possibly doubling every 7-10 years. The third doubling and fourth doubling are a lot bigger impact than the first or second. The sooner it’s invested....
by bradpevans
Wed Sep 19, 2018 9:00 am
Forum: Personal Finance (Not Investing)
Topic: What's the best early retirement strategy for us?
Replies: 39
Views: 3082

Re: What's the best early retirement strategy for us?

Refinance and drop the 5.875% to a lower percent.

the best route here is to go into mega-savings mode ... asap
by bradpevans
Tue Sep 18, 2018 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America credit card “feature” (be careful with autopay)
Replies: 45
Views: 2604

Re: Bank of America credit card “feature” (be careful with autopay)

Huge autopay fan

I have to imagine the number of people on this forum that carry a balance is near zero

So why not have autopay full balance set up on every card
by bradpevans
Tue Sep 18, 2018 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Employer/Plan Limit on 401K Contributions
Replies: 10
Views: 506

Re: Employer/Plan Limit on 401K Contributions

I discovered my SO employer has a contribution limit of 25% per pay period. With that limit, she is about $1500 under the IRS yearly limit of $18,500. Is this normal for a plan to impose limits on employees? If so, it frustrates me that an employee doesn't have the ability to max out if they so des...
by bradpevans
Mon Sep 17, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying SS? How Long It Will Take for It to Pay Off?
Replies: 53
Views: 5085

Re: Delaying SS? How Long It Will Take for It to Pay Off?

My numbers ignoring inflation/COLA increases: Age 62 to age 70: $198,144 Age 62 to age 80: $445,824 Age 70 to age 80: $435,240 The crossover is indeed a bit over age 80. 80.5 looks about right. I've never bothered to model the return on that $198,144. If you assume an after-inflation, after-tax 3% ...
by bradpevans
Mon Sep 17, 2018 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Pay large medical bills - cash or HSA?
Replies: 8
Views: 514

Re: Pay large medical bills - cash or HSA?

Use your HSA, thats the point. Many on here use their HSA as a backdoor tax advantaged investment account and you can do that too but it only makes sense if you've already maxed out your 401k and roth. you can use your HSA *later*, you don't have to submit the expenses right now. i.e. let your HSA ...
by bradpevans
Mon Sep 17, 2018 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security Until 70
Replies: 115
Views: 8983

Re: Delaying Social Security Until 70

2. Some do the math and (with justification) conclude earlier is better I believe that we are going to be in this category. We'll be bridging the gap between punching out and filing for SS by drawing on our 401k / tIRA accounts, and my math seems to indicate that there is a "sweet spot" between spe...
by bradpevans
Sat Sep 15, 2018 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: When to Tap Into SS
Replies: 14
Views: 1659

Re: When to Tap Into SS

If you need the money then sooner

If you expect to live to 94 then later

Delaying might leave more room for Roth Conversion if thst is in the cards
by bradpevans
Fri Sep 14, 2018 9:16 am
Forum: Investing - Theory, News & General
Topic: Pension alternatives
Replies: 41
Views: 3214

Re: Pension alternatives

We'll be buying an SPIA. Easy and relatively safe. We'll probably use about 25% of our savings. Together with SS that should cover our basic expenses. Another vote for SPIA in lieu of a pension. Much more stable / less complicated than real estate. Real estate does offer the potential for much high...
by bradpevans
Fri Sep 14, 2018 7:29 am
Forum: Investing - Theory, News & General
Topic: Pension alternatives
Replies: 41
Views: 3214

Re: Pension alternatives

We'll be buying an SPIA. Easy and relatively safe. We'll probably use about 25% of our savings. Together with SS that should cover our basic expenses. Another vote for SPIA in lieu of a pension. Much more stable / less complicated than real estate. Real estate does offer the potential for much high...
by bradpevans
Thu Sep 13, 2018 11:40 am
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7418

Re: Argument for taking social security before 70. Comments?

I don't know if the calculations included any investment returns. Ignoring that (i.e. put all your SS money under the pillow), ... Since SS benefits are inflation-indexed, to not "include any investment returns" is not the same as to "put all your SS money under the pillow". The latter would repres...
by bradpevans
Wed Sep 12, 2018 11:46 pm
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7418

Re: Argument for taking social security before 70. Comments?

My calculated break even at 66 vs 70 came out to 82 yrs and 68 vs 70 breakeven was 95. So I'll probably cut the difference and retire at 67 :) My suspician is that you need to check your math, unless what you're doing simply escapes me - granted, I have not crunched any of the numbers, but what you...
by bradpevans
Wed Sep 12, 2018 2:05 pm
Forum: Investing - Theory, News & General
Topic: Mega backdoor roth vs Keeping company issued stock
Replies: 9
Views: 548

Re: Mega backdoor roth vs Keeping company issued stock

Once RSU's vest, that $ value is yours, it just happens to be in company stock. Roughly, for every $100 in value, upon vesting, you have ~ $61 remaining. The taxes have been paid on your behalf (and will be reflected at W2 time) So, it's "like" a bonus check, taxed down to 61%. If you like the compa...
by bradpevans
Wed Sep 12, 2018 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Taxes in retirement too good to be true?
Replies: 23
Views: 4366

Re: Taxes in retirement too good to be true?

[/quote]I do have a small amount in a 401k + Roth 401k/Roth IRA, around $200k/$100k, I didn't include this in my tax calculations as I won't take money from my 401k until I'm required to do so (RMDs?), and the Roth should only serve to lower my taxes as (if I understand correctly) I can withdraw my ...
by bradpevans
Wed Sep 12, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7418

Re: Argument for taking social security before 70. Comments?

So, many variables ... let's say you are married & your SS annual benefit would be $25,000 at age 62. You decide to collect at age 70 (I'm just going to use 25K yr benefit for simplicity): - age 62-63 would have collected $25,000 - age 63-64 would have collected $25,000 - age 64-65 would have colle...
by bradpevans
Wed Sep 12, 2018 8:45 am
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7418

Re: Argument for taking social security before 70. Comments?

My calculated break even at 66 vs 70 came out to 82 yrs and 68 vs 70 breakeven was 95. So I'll probably cut the difference and retire at 67 :) My suspician is that you need to check your math, unless what you're doing simply escapes me - granted, I have not crunched any of the numbers, but what you...
by bradpevans
Tue Sep 11, 2018 8:44 pm
Forum: Investing - Help with Personal Investments
Topic: Cap gains / rebalancing
Replies: 0
Views: 188

Cap gains / rebalancing

Some good suggestions, tips, perspectives and links in this article from Kitces

https://www.kitces.com/blog/strategies- ... ted-stock/
by bradpevans
Tue Sep 11, 2018 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Mr.No - another should I pay off my mortgage, post
Replies: 31
Views: 2610

Re: Mr.No - another should I pay off my mortgage, post

I’m in the don’t pay it off camp as well

If you did pay it off, would that monthly cash flow go right back into the market?
If so, even more reason to leave it there, rather than pull it out, take a tax hit, then start piling up the money again
by bradpevans
Tue Sep 11, 2018 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Taking pension early
Replies: 6
Views: 1065

Re: Taking pension early

I hope someone can help me understand the pros and cons of taking a no-COLA pension early. I can get pensions from TWO former companies I worked for as follows: PENSION COMPANY ONE: At age 65: $3,816/- per month ($45,792/- per year) At age 62 (my current age): $3,694/- per month ($44,328/- per year...
by bradpevans
Tue Sep 11, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversions when we will be in 22% bracket for indefinite future
Replies: 16
Views: 1812

Re: Roth conversions when we will be in 22% bracket for indefinite future

Hi All, I'm interested in getting perspectives on whether or not it is worth it to do Roth conversions before I turn 70 in 4 years. My best estimate is that we will be in the 22% Federal tax bracket (8% California) for the indefinite future, both before age 70 and probably even after age 70, depend...
by bradpevans
Tue Sep 11, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: What are 401k after-tax contributions?
Replies: 23
Views: 2198

Re: What are 401k after-tax contributions?

You are describing what most here call "Mega Backdoor Roth" a) After tax 401k Contributions (plan must allow, you need to have the $) b) in service withdraw / in service rollover (plan must allow, not all plans do) c) call your plan holder and let them know you wish to do in-service rollover, from ...
by bradpevans
Tue Sep 11, 2018 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: What are 401k after-tax contributions?
Replies: 23
Views: 2198

Re: What are 401k after-tax contributions?

I know this is an old thread but looking for clarity in my situation. I have a rollover IRA from a number of old employers with Vanguard. This is invested in VTSAX and VBILX to get to my overall asset allocation. My current 401(k) is also with Vanguard. In my current 401(k), I have the S&P 500, mid...
by bradpevans
Tue Sep 11, 2018 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Fine tuning income around the ACA cliff
Replies: 24
Views: 1956

Re: Fine tuning income around the ACA cliff

15,000 is a lot to lose in order to save the differential marginal tax rates in question.
In other words, i'd stay pretty far away from the cliff, like 5K away
by bradpevans
Mon Sep 10, 2018 10:13 am
Forum: Personal Consumer Issues
Topic: Decking materials -your thoughts
Replies: 11
Views: 1007

Re: Decking materials -your thoughts

If you go cedar, (and access allows), you might consider under deck fastener system - then you don't have to look at all the lines of nail/screw heads. On my cedar deck, I paid the extra $$ for stainless screws. But if I didn't drive them in perfectly square and flush, they became little water catch...
by bradpevans
Mon Sep 10, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: General check-up on retirement financial status
Replies: 22
Views: 1625

Re: General check-up on retirement financial status

Roth conversion (perhaps to higher than typical levels) because eventually you will have: SS + pension + RMDs. For the charities, let that money sit (i.e. don't take a tax hit). I would also suggest a fee-only estate planning attorney, ideally one that works with retirement planners, and is able to ...
by bradpevans
Sun Sep 09, 2018 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement questions, would like others' input...
Replies: 4
Views: 1047

Re: Early retirement questions, would like others' input...

In your taxable I would additionally determine the basis and the gains. No one wants low gains - until they have to pay the tax on withdrawal. That may provide additional flexibilty (provide income without driving your tax bracket way up / allow space for Roth conversion when tax bracket is low)
by bradpevans
Sun Sep 09, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Lower Return Decade Says Jack: Thoughts?
Replies: 81
Views: 6577

Re: Lower Return Decade Says Jack: Thoughts?

Even if you believe this, there is still the time element: are you already retired? Will you retire in this window? Will you be adding funds every month - thus buying at relatively low values?