Search found 800 matches

by bradpevans
Thu Mar 14, 2024 2:26 pm
Forum: Personal Investments
Topic: Seeking end of career 401(k) advice
Replies: 11
Views: 1801

Re: Seeking end of career 401(k) advice

I have one of those Roth or traditional questions. I retired a couple years ago. DW retired in December, but she failed retirement miserably. :oops: (FWIW I am 68, she is 63.) She has just landed a new FT job which offers among other things, a traditional and a Roth 401(k). We are in either 22% or 24% marginal bracket. She plans to work for another 3-5 years. Without going into a detailed portfolio review, we have around $3.7MM invested. My tIRA $1.5MM. My Roth IRA $53K Our joint brokerage $174K Her HSA $1.2MM Her tIRA $806K With such a low amount in Roth now, and with her new salary coming in and not a lot of room to do high conversions, does it make sense for her to use the Roth 401(k) exclusively until she retires (again!)? As always, m...
by bradpevans
Sat Mar 09, 2024 10:11 am
Forum: Personal Consumer Issues
Topic: [Visiting Mackinac Island, Michigan with a small child]
Replies: 19
Views: 1514

Re: Mackinac Island, Michigan

It’s a charming spot. Lots for tourists and lots of trails / paths to get away. Yiu can stay on the island for more or off the island is cheaper. Mackinac Grand is the top end hotel on the island.
by bradpevans
Mon Oct 23, 2023 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Excess 401(k) deferrals to get the match?
Replies: 3
Views: 665

Re: Excess 401(k) deferrals to get the match?

My guess is you’ll never face penalty (short of self reporting)

I’d tilt to the plan with better match (for the future)
by bradpevans
Mon Oct 16, 2023 9:47 pm
Forum: Personal Investments
Topic: 401k Annual Compensation Limit/Supplemental 401k plan
Replies: 4
Views: 712

Re: 401k Annual Compensation Limit/Supplemental 401k plan

I have the "good problem" of hitting the annual compensation limit for 401k pre-tax before the end of the year. For next year's planning, if I want to make sure I don't have my contributions halted early, I assume I need to contribute whatever percentage =(401k contribution limit/401k annual compensation limit). This year that would have been 7% (I previously had always figured out the lowest % to make it to the annual contribution limit). I am also now contributing to a supplemental 401k, terms of which are distribution paid out at separation + 6 months over 10 years. This is matched at 4% and is invested in a stable value fund. Is there any reason I should consider contributing over 4%? Seems like the tax benefits require a cry...
by bradpevans
Thu Oct 12, 2023 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Moving $$ out of Ally
Replies: 12
Views: 2373

Re: Moving $$ out of Ally

I would ask Vanguard (the reciever) how they want it

Then go back to Ally
by bradpevans
Wed Oct 04, 2023 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage 6.825% vs savings
Replies: 29
Views: 4665

Re: Mortgage 6.825% vs savings

There is no benefit to applying funds to your mortgage until you’ve accumulated enough to pay off the entire loan. Paying extra doesn’t stop you from needing to make the monthly payment until the principal is fully gone. If you can trust yourself to not use the extra money for anything else except an eventually payoff, open an online savings account and put that $3,000 extra “payment” in there until you have enough to eliminate the note entirely. This way you preserve your liquidity in case you end up needing the funds and you still save the exact same amount in interest as if you had paid all along, while earning some interest income of your own. I’d phrase it as “no benefit to your monthly expenses” .. but it sure would save a lotta inte...
by bradpevans
Wed Oct 04, 2023 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage 6.825% vs savings
Replies: 29
Views: 4665

Re: Mortgage 6.825% vs savings

There is no benefit to applying funds to your mortgage until you’ve accumulated enough to pay off the entire loan. Paying extra doesn’t stop you from needing to make the monthly payment until the principal is fully gone. If you can trust yourself to not use the extra money for anything else except an eventually payoff, open an online savings account and put that $3,000 extra “payment” in there until you have enough to eliminate the note entirely. This way you preserve your liquidity in case you end up needing the funds and you still save the exact same amount in interest as if you had paid all along, while earning some interest income of your own. I’d phrase it as “no benefit to your monthly expenses” .. but it sure would save a lotta inte...
by bradpevans
Tue Sep 26, 2023 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Calculator for "Can I retire" refinement
Replies: 6
Views: 1247

Re: Roth Calculator for "Can I retire" refinement

Generally Roth conversion makes sense with very large tax deferred balance projected at time of RMDs. At some point take wider joint brackets become the narrower single brackets so the same RMD % can have different tax impact at that point

With your pensions and deferred balances I don’t think makes sense for you

On your wife’s pension you have this six year gap of 2023 vs 2029. Typically pension started earlier just mean a lowered payment (but not zero). Maybe I’ve misunderstood that part
by bradpevans
Tue Sep 26, 2023 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: My Aunt signed up for a home warranty. I want to cancel it but she might need it for a new Water Heater.
Replies: 40
Views: 3875

Re: My Aunt signed up for a home warranty. I want to cancel it but she might need it for a new Water Heater.

We have / had American Home Shield for nearly 20 years. Initially < $500/year to ~ $750/year more recently Not everything is covered .. but it saved us money and avoided big lumpy expenses If you do request service be sure you can be there Do they choose the provider and arrange for the work? Or is there an option for you to call a plumber and send them the bill afterwards? Typically you would know the name of the company - as in the warranty would let us know “work with Fairlane plumbing at 555-5555-5555) If you didn’t like what you found out once they arrived / estimated you could hire anyone you like. But get service fee of course had to be paid It’s a tricky thing: you pay warranty, they pay contractors. Some contractors were great, so...
by bradpevans
Tue Sep 26, 2023 1:29 pm
Forum: Personal Investments
Topic: Investing funny money but not laughing anymore
Replies: 86
Views: 12314

Re: Investing funny money but not laughing anymore

If you can’t quite sell yet, A stop loss might be in your best interest
by bradpevans
Mon Sep 25, 2023 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: My Aunt signed up for a home warranty. I want to cancel it but she might need it for a new Water Heater.
Replies: 40
Views: 3875

Re: My Aunt signed up for a home warranty. I want to cancel it but she might need it for a new Water Heater.

We have / had American Home Shield for nearly 20 years. Initially < $500/year to ~ $750/year more recently

Not everything is covered .. but it saved us money and avoided big lumpy expenses

If you do request service be sure you can be there
by bradpevans
Sun Sep 24, 2023 6:15 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting question
Replies: 21
Views: 1625

Re: Tax Loss Harvesting question

I have cleaned up all the small purchases in my taxable account over the years without costing me money in taxes by using tax-loss harvesting. For the record, in most circumstances realized losses whether long-term or short-term will offset realized gains whether long-term or short-term, so I wouldn't concern myself with that aspect. OTOH, I realize almost all short-term losses before they become long-term losses. So I don't understand why folks have any losses that have not been realized. Not to be argumentative but how do you know whether a short term loss will become a long term loss or a gain? Or maybe I’m misunderstanding your post Back to the OP, most times losses against income is more favorable than losses to cancel gains the short...
by bradpevans
Sun Sep 24, 2023 6:12 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting question
Replies: 21
Views: 1625

Re: Tax Loss Harvesting question

livesoft wrote: Sun Sep 24, 2023 5:46 pm
bradpevans wrote: Sun Sep 24, 2023 5:28 pmNot to be argumentative but how do you know whether a short term loss will become a long term loss or a gain?
Or maybe I’m misunderstanding your post
If you no longer own the shares because you sold them for a loss, why would you even care?

Note that tax-loss harvesting usually has another aspect: One uses the money from selling to buy a substantially similar, but not substantially identical investment such as sell VTI and buy VV. Whether the thing one buys (VV in my example) has a subsequent loss or gain is immaterial to the discussion, right?
Got it - you are referring to accounting of the loss; I thought you meant the initial sale to trigger the loss
by bradpevans
Sun Sep 24, 2023 5:28 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting question
Replies: 21
Views: 1625

Re: Tax Loss Harvesting question

livesoft wrote: Sun Sep 24, 2023 5:13 pm I have cleaned up all the small purchases in my taxable account over the years without costing me money in taxes by using tax-loss harvesting.

For the record, in most circumstances realized losses whether long-term or short-term will offset realized gains whether long-term or short-term, so I wouldn't concern myself with that aspect. OTOH, I realize almost all short-term losses before they become long-term losses. So I don't understand why folks have any losses that have not been realized.
Not to be argumentative but how do you know whether a short term loss will become a long term loss or a gain?
Or maybe I’m misunderstanding your post

Back to the OP, most times losses against income is more favorable than losses to cancel gains
by bradpevans
Fri Sep 22, 2023 3:59 pm
Forum: Personal Consumer Issues
Topic: First Time Snowboarding..Should I?
Replies: 41
Views: 4887

Re: First Time Snowboarding..Should I?

Can you try snowboarding locally/ just for half day?
You will fall. You will be frustrated

That said snowboarding is easier ; the first 1-3 days are not

On skis you CAN go slow and straight and see in front of you

On snowboard it is VERY HARD to go slow and straight and see in front of you. Standing cross hill on a board requires constant balance adjustments— that’s why you see snowboarders sitting on hill VS standing like skiers

Stay on the appropriate slope if you go for it
by bradpevans
Sat Sep 16, 2023 10:39 am
Forum: Personal Investments
Topic: Not quite ready to move from 90 / 10 to 60 / 40
Replies: 53
Views: 6601

Re: Not quite ready to move from 90 / 10 to 60 / 40

As a counterweight to the chart above comparing long-term returns of stocks vs bonds, if you continue the chart to the present day instead of stopping in 2009, the difference is enormous. Over that 38 year period you would have 650% more if you invested in an all-stock portfolio. An example of the power of compounding writ large. Billy C, OP is in mid 40s. OP is unlikely to work for another 38 years. KlangFool Mid 40’s is still relatively young. OP could have another 45 years to live. One of the greatest mistakes that investors make is to underestimate their holding period. In addition to age / expected life, at this point you are still accumulating. When you retire, you are de-cumulating Investing when the market drops is substantially di...
by bradpevans
Fri Sep 08, 2023 9:21 pm
Forum: Personal Investments
Topic: Selling Winning Stocks for Tax Loss Harvesting
Replies: 4
Views: 664

Re: Selling Winning Stocks for Tax Loss Harvesting

Generally it’s better (tax wise) to take the loss to cancel out income — ie lower income by $3000 / year and save those taxes

I wouldnot sell just to “cancel out” all though that would reset your basis (after the 30 days)
by bradpevans
Fri Sep 08, 2023 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: 401k catchup contributions confused
Replies: 11
Views: 1490

Re: 401k catchup contributions confused

At my megacorp / via Fidelity I enter percentage regular and % going into catchup. Ends up in the same place but two line items on the front end
by bradpevans
Tue Aug 08, 2023 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Unlock value of low interest mortgage?
Replies: 95
Views: 8613

Re: Unlock value of low interest mortgage?

KlangFool wrote: Mon Aug 07, 2023 9:33 am OP,

I do not understand your question.

You pay less on mortgage every month. That should free you up more money to invest every month. So, why do you need to do anything else? That is the value of low interest mortgage.

KlangFool
^^^ this is it
by bradpevans
Wed Aug 02, 2023 9:59 pm
Forum: Investing - Theory, News & General
Topic: is it accurate to say almost no one beats the market?
Replies: 136
Views: 11966

Re: is it accurate to say almost no one beats the market?

you lost $50 that I made because you sold it to me. You may have made some, but lost some too, that which you gave to me. You're trying to create a situation where EVERYBODY CAN WIN!! without acknowledging what you lost because you sold to me. i didn't say the stock market is zero sum. I said individual stocks are a zero sum game. everybody who owns the market will get the same returns regardless of whatever happens to the individual stock pickers (who are playing a zero sum game). If I bought at $100 and sell it to you for $150, I made $50, end of story. Doesn't matter if the stock proceeds to hit $1000 after my sale. it does. the only reason to hold a stock is because you believe it has value to create (you could be wrong about that) AND...
by bradpevans
Mon Jul 31, 2023 2:01 pm
Forum: Investing - Theory, News & General
Topic: Why Roth never Wins when given equal tax treatment with Traditional IRA
Replies: 434
Views: 41563

Re: Why Roth never Wins when given equal tax treatment with Traditional IRA

What seems to be lost or not emphasized in this thread (although perhaps not the purpose of the thread), is that for most retirees a blend of Roth, tIRA and taxable accounts is best. It provides the most flexibility for unknown financial and tax conditions over what is hopefully a long period of time. Whether optimally that is close to 1/3, 1/3, 1/3 or just a significant amount in each category can be debated. With the ability to adjust it is likely to allow opportunities for most efficient tax management of a portfolio, which I take it is part of the purpose of this thread. Although I agree with you that having tax diversification is great, 50/50 and 1/3 are not so easy to accomplish unless one is making a lot and saving well over 30% of ...
by bradpevans
Sun Jul 30, 2023 9:47 pm
Forum: Investing - Theory, News & General
Topic: is it accurate to say almost no one beats the market?
Replies: 136
Views: 11966

Re: is it accurate to say almost no one beats the market?

The "market" return is the sum of all the winners and losers. One person outperforming means one or more have to underperform. I’m not convinced this is true. People leave and enter stock holdings all the time. I don’t see the connection between one person “winning” and another “losing” if you want to buy a stock you can only do so if i agree to sell you my stock (and we agree on price at which to exchange). You want to buy the stock only because you think it will go up in the future. If you didn't, you either wouldn't buy it at all or you might wait to buy it in the future at a lower price. I want to sell the stock only because I think it will go down in the future. If I didn't I either wouldn't sell it at all or I might wait to...
by bradpevans
Sun Jul 30, 2023 9:41 pm
Forum: Investing - Theory, News & General
Topic: Have you recovered from the market downturn?
Replies: 117
Views: 11002

Re: Have you recovered from the market downturn?

pasadena wrote: Sun Jul 30, 2023 8:30 pm My Net Worth is at an ATH. It exceeded the previous one (from 11/2021) on June 6 this year.

However the difference is still way lower than the sum of my contributions in that time. So... yes... but no? Maybe? Depends?
My peak was essentially the same time as yours. Low point was about 30% drop. Almost back - roughly 6% off the peak (but worse since I’ve been adding all the time too)
by bradpevans
Sun Jul 30, 2023 1:56 pm
Forum: Investing - Theory, News & General
Topic: is it accurate to say almost no one beats the market?
Replies: 136
Views: 11966

Re: is it accurate to say almost no one beats the market?

i heard someone say that, and i was thinking it might not accurate. or is it more accurate just to say that most people dont beat the market? the market return is average, so one might think half the people do better. maybe over longer periods of time more and more people do just average and some dip below average. but isn't it most accurate to say a sizeable amount of people actually do beat the market? not that we should try to beat it when average is just fine and less risky. The "market" return is the sum of all the winners and losers. One person outperforming means one or more have to underperform. I’m not convinced this is true. People leave and enter stock holdings all the time. I don’t see the connection between one perso...
by bradpevans
Sat Jul 29, 2023 8:22 pm
Forum: Investing - Theory, News & General
Topic: is it accurate to say almost no one beats the market?
Replies: 136
Views: 11966

Re: is it accurate to say almost no one beats the market?

i heard someone say that, and i was thinking it might not accurate. or is it more accurate just to say that most people dont beat the market? the market return is average, so one might think half the people do better. maybe over longer periods of time more and more people do just average and some dip below average. but isn't it most accurate to say a sizeable amount of people actually do beat the market? not that we should try to beat it when average is just fine and less risky. The "market" return is the sum of all the winners and losers. One person outperforming means one or more have to underperform. I’m not convinced this is true. People leave and enter stock holdings all the time. I don’t see the connection between one perso...
by bradpevans
Sat Jul 29, 2023 8:16 pm
Forum: Personal Investments
Topic: Need advice on managing Roth 401k conversions, including "mega backdoor Roth"
Replies: 21
Views: 2059

Re: Need advice on managing Roth 401k conversions, including "mega backdoor Roth"

Another consideration is simply how much can you contribute? I can contribute the max to my 401k, so that would be $67,500 this year including employer matching. Note however, this will mean a bit of spending down of the non-retirement savings I have, but I think that is worth doing to get the non-retirement savings into a Roth. I have the same setup with fidelity. At this stage of life I’m able to fill traditional, catch up traditional and as much back door Roth as I can staying under the yearly Qualified money limit of approximately $67,500. If I over contribute due to random bonus amounts with percent contributions, the spill over goes into an additional plan that is not qualified money I'm not to clear on your over contribution point. ...
by bradpevans
Sat Jul 29, 2023 8:10 pm
Forum: Investing - Theory, News & General
Topic: Why Roth never Wins when given equal tax treatment with Traditional IRA
Replies: 434
Views: 41563

Re: Why Roth never Wins when given equal tax treatment with Traditional IRA

Many people, especially reasonable income with high savings % may well end up in higher tax brackets in retirement vs working

Tax deferred, taxable gains, 1 or 2 SS, pension(s), RMD. And sadly loss of a spouse has a large impact on how much space is in each tax bracket

Market performance, especially up market in early retirement, may also further boost RMDs
(This could go the other way of course)
by bradpevans
Sat Jul 29, 2023 8:49 am
Forum: Personal Investments
Topic: Need advice on managing Roth 401k conversions, including "mega backdoor Roth"
Replies: 21
Views: 2059

Re: Need advice on managing Roth 401k conversions, including "mega backdoor Roth"

Another consideration is simply how much can you contribute? I have the same setup with fidelity. At this stage of life I’m able to fill traditional, catch up traditional and as much back door Roth as I can staying under the yearly Qualified money limit of approximately $67,500. If I over contribute due to random bonus amounts with percent contributions, the spill over goes into an additional plan that is not qualified money

Other factors: Will you retire early giving more time for Roth conversions? What about Social Security, one or two and how much? And similarly for pensions
by bradpevans
Mon Jul 24, 2023 11:22 pm
Forum: Investing - Theory, News & General
Topic: Why Roth never Wins when given equal tax treatment with Traditional IRA
Replies: 434
Views: 41563

Re: Why Roth never Wins when given equal tax treatment with Traditional IRA

I know this isn't always easy to understand but We earn money pre-tax, we decide whether we need to save pre-tax or after-tax based on what we know or estimate our current tax rate will be. If we have $1220 gross that we can save then it can either go all into TDA or you can put $952 in the Roth and send $268 to the IRS. We pay taxes on income, not specifically on retirement contributions. With Roth you get no tax deduction, while with TDA there is a deduction, which means extra cash in your pocket after you pay your yearly taxes. I’ve never understood this as “tax savings”. Suppose I make 100K and do 10k traditional. I view it as I make 90K, and owe taxes on 90K and live on the rest. Is my tax bill lower than if did zero traditional? Yes ...
by bradpevans
Thu Jul 20, 2023 8:14 pm
Forum: Personal Investments
Topic: Roth conversions - is there a formula towards the right amount?
Replies: 174
Views: 14441

Re: Roth conversions - is there a formula towards the right amount?

After a lot of spreadsheet work years ago looking for the “right” answer on Roth conversion amounts I realized there are just too many unknowns. So I adopted an approach that tries to keep my taxable income now with conversions about equal to what I expect it to be after SS and RMDs start. I update the outlook based on prior YE balances to set my conversion target for the coming year. I know in hindsight this will either be too much or too little. However, I don’t think I’ll be way off in either direction and accept that’s the best I can do. May put me in a higher IRMAA tier now but likely avoids an even higher one later. This is probably the closest you can come to an optimal approach. I believe Kitces had an article on this .. but the me...
by bradpevans
Wed Jul 19, 2023 8:33 pm
Forum: Personal Consumer Issues
Topic: Paying Off Mortgage Early - Any Additional Considerations?
Replies: 22
Views: 3037

Re: Paying Off Mortgage Early - Any Additional Considerations?

runner3081 wrote: Mon Jul 17, 2023 8:23 pm It was not nearly as exciting or satisfying as we thought it would be.
Same!
by bradpevans
Tue Jul 18, 2023 11:48 pm
Forum: Personal Investments
Topic: Trying to Avoid High Expenses and Capital Gains
Replies: 7
Views: 1215

Re: Trying to Avoid High Expenses and Capital Gains

My sense is you’ll be paying 15 % LTCG now or later, but a large enough gain in one year might have other implications for your total taxes / marginal rates

If the expenses / complexity bothers you enough you can cash em all out, set aside some money for taxes and invest in line with your AA / portfolio (this is likely sub optimal on the tax side but the 15% LTCG bracket is pretty wide) then
by bradpevans
Fri Jul 14, 2023 8:17 pm
Forum: Personal Investments
Topic: Best Idea for Safely Maximizing Individual Roth 401(k) Returns on Money Waiting to DCA into Target Date Fund?
Replies: 61
Views: 3697

Re: Best Idea for Safely Maximizing Individual Roth 401(k) Returns on Money Waiting to DCA into Target Date Fund?

Will these funds be accessed in less than 10 years? If not, just lump sum and leave all the angst behind. Barring a major national/international financial calamity, they will be worth more in 10+ years. You have other things to worry about than this. We all do. I foresaw that this thread might just end up with people telling me to lump sum. But assuming I want to DCA, what's the best strategy then? There will always be some of us who prefer to DCA for a variety of reasons. The best strategy depends on what objective you are pursuing. In short, for what reason do you "want" to DCA. I DCA because I like buying more shares when prices are low and less shares when prices are high. And I am perfectly happy with that strategy and would...
by bradpevans
Thu Jul 13, 2023 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Early Retirement Budget with $2M Portfolio
Replies: 110
Views: 16618

Re: Early Retirement Budget with $2M Portfolio

Your $2M likely has a basis smaller than 2M. This would allow: withdraw larger amount and still keep the taxes as posted
Or capital *gain* harvest to push up your basis while staying inside the desired tax bracket / lessening tax burden later

If the account “swells” both of those are to your advantage
by bradpevans
Mon Jul 10, 2023 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Advice re medical [school] loan payoff vs investing
Replies: 17
Views: 1682

Re: Advice re medical [school] loan payoff vs investing

There are many threads and many angles to this one: if you pay *down* but don't pay it off, your monthly cash flow is the same (until it IS paid off) in terms of qualified money, those buckets "expire ever year". You can't go back and fill them later... In my view the time horizon is NOT the loan period but rather the investment period. For *me* that meant retirement horizon not big purchase horizon, so a house purchase might alter that for you. Paying the mortgage sooner only increases retirement savings *after* the loan period ends. My view is sooner you get money into the market, the sooner it doubles, and doubles again. If you do wish to throw a "chunk of money" at the loan, then sooner of course is better *guarantee...
by bradpevans
Sat Jul 08, 2023 11:20 am
Forum: Personal Investments
Topic: Lessons I learned too late about my pension
Replies: 83
Views: 9861

Re: Lessons I learned too late about my pension

I thought much of the move away from pension was related to shrinking work force and the burden of managing / being able to make the payments. Now those issues reside with the plan (ie fidelity etc). And they have nearly guaranteed participants paying whatever fees are laid out (but often hidden)

From sixty minutes https://m.youtube.com/watch?v=K5WpOknON9Q
by bradpevans
Sat Jul 08, 2023 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor Roth (2 employers)
Replies: 22
Views: 2069

Re: Mega-backdoor Roth (2 employers)

Hi bogleheads, I switched to a new employer this year who allows for megabackdoor roth. I've read the wiki and I'd like to make sure I have this straight and that I'm picking the right path. Employer A (former): I contributed $12,176.44 + employer match $3,746.60 = $15,923.04 Employer B (current): Plan has all the bells and whistles which allow for mega-backdoor Roth (401k, Roth 401k, After Tax, In-service distributions). Employer will match up to $20k. Per the wiki https://www.bogleheads.org/wiki/After-tax_401(k)#After-tax_401(k)_limits it seems my after-tax 401k limit is $66k for employer B. Seems I should ignore employer B 401k and Roth 401k options. I could technically contribute $10,323.56 ($22,500 limit - $12,176.44 [my contribution ...
by bradpevans
Fri Jul 07, 2023 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor Roth (2 employers)
Replies: 22
Views: 2069

Re: Mega-backdoor Roth (2 employers)

Hi bogleheads, I switched to a new employer this year who allows for megabackdoor roth. I've read the wiki and I'd like to make sure I have this straight and that I'm picking the right path. Employer A (former): I contributed $12,176.44 + employer match $3,746.60 = $15,923.04 Employer B (current): Plan has all the bells and whistles which allow for mega-backdoor Roth (401k, Roth 401k, After Tax, In-service distributions). Employer will match up to $20k. Per the wiki https://www.bogleheads.org/wiki/After-tax_401(k)#After-tax_401(k)_limits it seems my after-tax 401k limit is $66k for employer B. Seems I should ignore employer B 401k and Roth 401k options. I could technically contribute $10,323.56 ($22,500 limit - $12,176.44 [my contribution ...
by bradpevans
Thu Jul 06, 2023 3:07 pm
Forum: Personal Investments
Topic: Any issues with an SPIA inside a Roth?
Replies: 5
Views: 581

Re: Any issues with an SPIA inside a Roth?

Harmanic wrote: Thu Jul 06, 2023 12:30 pm Yes, you can. But should you?

https://www.thestreet.com/annuityman/an ... a-roth-ira
Do you take the article to be in the direction of "hold riskier/more aggresive in Roth, hold safer outside of Roth"?
by bradpevans
Thu Jul 06, 2023 12:57 pm
Forum: Personal Investments
Topic: What to do with vested RSUs
Replies: 6
Views: 1081

Re: What to do with vested RSUs

Hello Experts, I need your advice on what to do with some RSUs. I have got some RSUs from work for the first time that have vested and they are worth roughly $32K. Acquisition prices for these RSUs vary from $44-$58 depending on when they vested. Current stock price is around $51. Stock pays around 3% dividend. I think I can get more money in a CD, T-bill or it would be better to just move money in an index fund. But I am not sure if I need to worry about anything i.e. paying tax etc. Or if I am making a loss on certain stocks i.e. acquired at $58 and sold at $51. I believe vested RSUs are just like cash and the tax is already paid on it. But I could be wrong. This is the first time I have got RSUs so I don't fully understand it and need h...
by bradpevans
Thu Jul 06, 2023 12:49 pm
Forum: Personal Investments
Topic: 100% Stocks Early Retirement
Replies: 361
Views: 31422

Re: 100% Stocks Early Retirement

mikejuss wrote: Wed Jul 05, 2023 10:43 am It seems nuts to me to ever be 100% stocks at any age--but, according to this article in the Wall Street Journal, it's quite common among retirees. I can guess only that people aren't saving nearly enough for their retirement, and are thinking they can make up for the shortfall via stock-market gains. These are the same people who freak out whenever there's a market dip or a sustained downturn. :oops:

https://www.wsj.com/articles/it-isnt-ju ... d-ca069e1a
Or, people have saved so much (likely via 100% stocks and 20-30 years of ongoing contributions) that they can weather market pullbacks
by bradpevans
Wed Jul 05, 2023 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Debt consolidation efforts with debthunch / other companies
Replies: 23
Views: 1560

Re: Debt consolidation efforts with debthunch

I have roughly 43K in credit card debt that i am trying to pay off and i got a mailer from debthunch to consolidate my debt and i got a call this morning that they will negotiate my debt and make it one single payment of $690 for 54 months with zero interest and my cards will be closed . Is this real ? do you have any idea about these companies ? Here is my current debt and email below i got after phone call Citi : $5,490 Citi: $5,914 Fnbo: $8640 wells fargo: $10278 Discover: $12,404 It was a pleasure getting to chat with you. I’m sending you this email to provide you with a written summary of what we can do with your current debt. Once you’ve had a chance to review the information, please shoot me an email regarding any questions you may ...
by bradpevans
Wed Jul 05, 2023 1:16 pm
Forum: Personal Investments
Topic: Capital Gain Qustion
Replies: 19
Views: 2199

Re: Capital Gain Qustion

lakpr wrote: Wed Jul 05, 2023 12:16 pm
boater07 wrote: Wed Jul 05, 2023 12:14 pm The suggestion to take $3000/yr wil take me past a hundred :)
Ah, this is new information ... you lost at least $120k? Then I agree to use up those losses now.
(your user profile shows "Retired", so I am assuming >60, so $3000 * 40 years).
as others have noted you are trading off LTCG rates // ordinary income rates (which are generally higher)
and typically going against income is "better" than cancelling losses.

you might also look ahead to RMD years and see if using say 15,000 in one year is better "now" vs in "high RMD year(s)" (if that applies)
by bradpevans
Wed Jul 05, 2023 1:09 pm
Forum: Personal Investments
Topic: Cash to Keep Liquid in Retirement
Replies: 34
Views: 4728

Re: Cash to Keep Liquid in Retirement

kajb1313 wrote: Tue Jul 04, 2023 11:35 pm Thanks Guys! I do have to look at my pre-tax retirement accounts to figure out my RMD.

Currently I have $300K in my Brokerage Account that I’m currently drawing from. As I approach age 73 and depending what the market does, I might be better off drawing down my IRA Accounts to lessen the tax liability. Will see?

My current drawdown order:

Brokerage
Traditional IRA
Rollover IRA
Roth IRA
Since you have a brokerage account you (probably) should look at tax *gain* harvesting and take your income right to the top of the 0 tax bracket
by bradpevans
Wed Jul 05, 2023 10:19 am
Forum: Personal Finance (Not Investing)
Topic: once your portfolio generates more than your earned salary
Replies: 34
Views: 6150

Re: once your portfolio generates more than your earned salary

Still, this feels fairly remarkable to me, and I am wondering if the similar moment in one’s savings/investing ‘journey’ registered to other people, and if so, did it/should it prompt any action? I had two very different "moments". 1) Maybe 7 years before I actually retired I realized that my yearly retirement account contributions were relatively small compared to my total portfolio, maybe 2% or so and there were occasionally days when my portfolio would change in value by as much as I would contribute all year. My new contributions really did not move the needle much in my retirement calculations so I decided to loosen up the purse strings and cut my retirement saving and to start spending more on things like travel. For the la...
by bradpevans
Sun Jul 02, 2023 2:43 pm
Forum: Personal Investments
Topic: 100/0 vs 70/30 for Young Investor Who Will Receive Pension
Replies: 53
Views: 4091

Re: 100/0 vs 70/30 for Young Investor Who Will Receive Pension

I'm too lazy to go back and try to prove it, but I think my 70/30 allocation (more or less) since my mid 30's has likely outperformed 100% equities. Being a bit greedy, I "over-ballanced" from fixed income into stocks in 2000, 2008 and 2020. At 100% equities, I would have just had to stand there and take it, but with some fixed income, I could aggressively take advantage of what was on sale. Overall, the ride has been smoother. If I understand this Sounds like “dry powder is good during downturns”. But that dry powder almost certainly underperforms the equities in the run up It wasn't so much a decision to hold dry powder on the sides waiting for a downturn. 70/30 is my general comfort level. But, for instance, in 2008, when the ...
by bradpevans
Sun Jul 02, 2023 11:33 am
Forum: Personal Investments
Topic: 100/0 vs 70/30 for Young Investor Who Will Receive Pension
Replies: 53
Views: 4091

Re: 100/0 vs 70/30 for Young Investor Who Will Receive Pension

Outer Marker wrote: Sat Jul 01, 2023 8:50 pm I'm too lazy to go back and try to prove it, but I think my 70/30 allocation (more or less) since my mid 30's has likely outperformed 100% equities. Being a bit greedy, I "over-ballanced" from fixed income into stocks in 2000, 2008 and 2020. At 100% equities, I would have just had to stand there and take it, but with some fixed income, I could aggressively take advantage of what was on sale. Overall, the ride has been smoother.
If I understand this Sounds like “dry powder is good during downturns”.

But that dry powder almost certainly underperforms the equities in the run up
by bradpevans
Sat Mar 19, 2022 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: When do you pay your credit card bill?
Replies: 194
Views: 16583

Re: When do you pay your credit card bill?

I have always paid via ACH pull close to the due date Does the credit card not support auto/repeat payments or you don't want to put your bank information to allow it to pull arbitrary amounts -- potentially more than your available cash -- or some other reason? The recurring payments screen I see for a credit card shows various date options ranging from "on due date" to some days before. I believe if the credit card company initiates the transfer even on the due date, there's no(?) concern of it being late? I am usually only comfortable setting up auto pay for fixed expenses, and not for variable expenses like credit card bills or utilities. Lately I’ve been rethinking my bill pay strategy though since it’s been taking up a lot ...
by bradpevans
Sat Nov 20, 2021 6:14 am
Forum: Investing - Theory, News & General
Topic: Tax Gain Harvesting - High gain or low gain?
Replies: 23
Views: 2213

Re: Tax Gain Harvesting - High gain or low gain?

it seems future considerations, both on dollars and performance would come into play.
Suppose i have $6000 to harvest from these three:
1000 basis = 7000
6000 basis = 12000
30000 basis = 36000
The plan is to sell and rebuy, establish the new basis of 7000, 12000, 36000

If these are different tickers, how does that come into play?

If these are different purchases of the same ticker, does it matter?
by bradpevans
Fri Nov 12, 2021 5:51 am
Forum: Personal Finance (Not Investing)
Topic: When/How Did You Get Things on Auto-Pilot and Stop Worrying about the Spreadsheet/Early Retirement
Replies: 89
Views: 10523

Re: When/How Did You Get Things on Auto-Pilot and Stop Worrying about the Spreadsheet/Early Retirement

curious why you would hold all that cash and still have the student debt?

that's costing you a lotta $4 coffees....