Search found 48 matches

by 1CEBITN
Fri Mar 15, 2019 1:37 pm
Forum: Personal Investments
Topic: Traditional vs Roth IRA
Replies: 21
Views: 1850

Re: Traditional vs Roth IRA

For most people traditional 401k contributions are likely better than Roth contributions to a 401k. TFB blog post "The Case Against Roth 401k" . "I think for most people the majority, if not 100%, of the contribution should go to a Traditional 401(k)." I agree with that to a point. He also says: "A...
by 1CEBITN
Fri Mar 15, 2019 1:11 pm
Forum: Personal Investments
Topic: Is MM safer than ST Bond? If so, why/how?
Replies: 17
Views: 1562

Re: Is MM safer than ST Bond? If so, why/how?

The simplest explanation is that MM funds won't lose money. Bond funds can lose money but ST bonds are less likely to do so at the cost of lower returns (less risk = less reward) as you already know. The 7 day yield on Vanguard's prime MM fund (VMMXX) is 2.45% so a little better than VMFXX and on pa...
by 1CEBITN
Fri Mar 15, 2019 12:48 pm
Forum: Personal Investments
Topic: Traditional vs Roth IRA
Replies: 21
Views: 1850

Re: Traditional vs Roth IRA

OP, at your income level I would think hard about maxing out your 401k using 100% Roth 401k (if available from your employer) and also max out the Roth IRA if you can afford it. If not, make sure you get the employer match in your 401k for sure before you put anything into the Roth IRA. Your tax bil...
by 1CEBITN
Fri Aug 17, 2018 2:58 pm
Forum: Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1957

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

I purchased permanent life insurance because it is permanent, not because it is a good investment. I want something to leave behind no matter when I pass on that is tax-free to my estate. You would have passed on far more if you had bought term life for 30 years, and invested the difference in Tota...
by 1CEBITN
Thu Aug 16, 2018 4:21 pm
Forum: Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1957

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

I purchased permanent life insurance because it is permanent, not because it is a good investment. I want something to leave behind no matter when I pass on that is tax-free to my estate. You would have passed on far more if you had bought term life for 30 years, and invested the difference in Tota...
by 1CEBITN
Thu Aug 16, 2018 2:43 pm
Forum: Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1957

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

I would listen to DetroitRick's advice if I were you, OP. There are so many different companies offering life insurance which give it a bad name and so many different variations on permanent life insurance it is very uninformed to say blindly to get rid of them or cash them out unless you know preci...
by 1CEBITN
Mon Aug 13, 2018 7:14 pm
Forum: Personal Consumer Issues
Topic: Retire in Florida or Alabama?
Replies: 107
Views: 10529

Re: Retire in Florida or Alabama?

I don't quite understand the beach thing. Texas beaches have much better sand for castle building and the water is warmer than locations in both Alabama and Florida. Where are the grandkids located? They let people drive on the beaches in TX. No thanks when I've got grandkids trying to build sandca...
by 1CEBITN
Mon Aug 13, 2018 11:09 am
Forum: Personal Investments
Topic: Roth IRA max salary
Replies: 14
Views: 2448

Re: Roth IRA max salary

If your 401k has the option and the investment choices are decent you could do Roth 401k in your new job and then you don't have to worry about the income limits. When you're tired of working just roll it into the Roth IRA.
by 1CEBITN
Sat Aug 11, 2018 2:23 pm
Forum: Personal Investments
Topic: Roth 401k vs. Traditional 401k
Replies: 36
Views: 2196

Re: Roth 401k vs. Traditional 401k

If his tax bracket is currently much higher than what he expects to pay when withdrawing, then it logically follows that 100% traditional and 0% Roth is the indicated course of action. It may turn out to be incorrect if his expectation is not correct, but it is logical. What you expect to pay in re...
by 1CEBITN
Sat Aug 11, 2018 1:33 pm
Forum: Personal Investments
Topic: Roth 401k vs. Traditional 401k
Replies: 36
Views: 2196

Re: Roth 401k vs. Traditional 401k

I don't really care what the current taxes are, that makes zero difference in this decision.... With that taken out of the analysis, you may indeed justify pretty much any decision. What your current tax rate is now, and what you pay when you withdraw later, will determine the result of that decisi...
by 1CEBITN
Fri Aug 10, 2018 1:40 pm
Forum: Personal Investments
Topic: Roth 401k vs. Traditional 401k
Replies: 36
Views: 2196

Re: Roth 401k vs. Traditional 401k

I'm in a similar situation as the OP and I am doing 100% Roth now because I didn't have the Roth option when I started working. I'm going for a 50/50 split between the two for flexibility but will slowly convert those to Roth when I am in the 0% bracket while living off my Roth contributions. I don'...
by 1CEBITN
Thu Aug 02, 2018 1:58 pm
Forum: Personal Investments
Topic: HSA's - when does it make sense?
Replies: 37
Views: 3764

Re: HSA's - when does it make sense?

Honestly, I would fund it before your 401k. Meaning, it's the first place I'd put money. It's the only investment that is tax-free both in and out (if used for medical expenses). And if you don't use it for medical expenses you can still use it at a retirement account and start withdrawing at 65. I...
by 1CEBITN
Thu Jul 26, 2018 3:13 pm
Forum: Personal Investments
Topic: Thoughts on prioritizing 401k, mortgage and/or 529
Replies: 23
Views: 2445

Re: Thoughts on prioritizing 401k, mortgage and/or 529

I don't agree with those of you who think a 529 is the same as a Roth for education expenses. A Roth can be used for education MINUS THE GROWTH (only get out your principal - that is like a 0% interest savings account). That is a huge difference compared to throwing some money into a 529 now and let...
by 1CEBITN
Tue Jul 24, 2018 3:44 pm
Forum: Personal Investments
Topic: Bonds in Pre-tax or Roth bucket?
Replies: 7
Views: 992

Re: Bonds in Pre-tax or Roth bucket?

I don't think it really matters unless you are asking if you should be placing bonds in Roth in lieu of stocks (that would be a bad idea as was already mentioned). You won't pay any taxes on anything in a Roth so it makes sense to put stocks in there but no reason to exclude bonds necessarily. I'm p...
by 1CEBITN
Thu Jul 19, 2018 10:50 am
Forum: Personal Investments
Topic: Backdoor Roth - Have Existing tIRA - Now what?
Replies: 4
Views: 524

Backdoor Roth - Have Existing tIRA - Now what?

Hi folks, I have always rolled over previous employer's 401k/Roth 401k money into tIRA and Roth IRAs so I could better manage the funds I am invested in, I didn't know the pro-rata rule of Roth conversions :oops: Because of that, I have a sizable chunk of my retirement money and my wife's in tIRAs w...
by 1CEBITN
Thu Jul 19, 2018 10:29 am
Forum: Personal Investments
Topic: Taxable Account vs Roth IRA
Replies: 11
Views: 1464

Re: Taxable Account vs Roth IRA

Even if you are over the limit for contributing to a Roth IRA, you may be able to do a non-deductible traditional IRA contribution (with after-tax money) and then convert that to Roth to avoid future taxes on the gains, called a back door Roth contribution. There are some rules around that but, if y...
by 1CEBITN
Wed Jul 18, 2018 11:35 am
Forum: Personal Investments
Topic: When to invest 100000?
Replies: 40
Views: 5035

Re: When to invest 100000?

I had a similar quandry on a lump sum a little bigger than that because VTI is at its 52 week high pretty much right now. Terrible time to buy in theory and a lot of market indicators point to the market being over-valued at the moment, meaning a correction is coming. Personally, I put in half of mi...
by 1CEBITN
Fri Jul 06, 2018 9:32 am
Forum: Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 3371

Re: Can you help me figure out how much emergency fund $ I REALLY need?

Keep in mind that emergency funds aren't only to keep you afloat if you lose a job. I assume you have a house so what if you have to replace your furnace, AC, water heater? What if you suddenly wreck your car and have to buy a new one? What if you have some type of health issue, etc... Unexpected la...
by 1CEBITN
Thu Jul 05, 2018 5:36 pm
Forum: Personal Investments
Topic: Building a house
Replies: 8
Views: 1448

Re: Building a house

Why not check with a couple lenders about construction-to-perm financing? It might be a better option than selling your bonds and using your HELOC. You have nothing to lose but a little time. +1 HELOC rates have been pretty high and the amount they will lend isn't what it used to be. Can't hurt to ...
by 1CEBITN
Thu Jul 05, 2018 5:33 pm
Forum: Personal Investments
Topic: My student loan or kids' 529?
Replies: 7
Views: 769

Re: My student loan or kids' 529?

I'd take the guaranteed minimum 4.88% return on that $8k and pay down that student loan. If I were you I would actually put a little less in your 401k and pay it off in a year or take another $8k from your savings and pay that loan off now. Keep paying yourself the monthly payment until your savings...
by 1CEBITN
Mon Jul 02, 2018 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella Policy: Right amount for $7 mil net worth?
Replies: 113
Views: 19680

Re: Umbrella Policy: Right amount for $7 mil net worth?

\Also remember one of the biggest, most ridiculous things in our legal system is it is "free" to sue someone. Plaintiff's lawyers don't get paid unless you win typically so anybody can sue you any time over any thing and some sleazy lawyer will take that case just to see if you will settle vs pay y...
by 1CEBITN
Thu Jun 28, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella Policy: Right amount for $7 mil net worth?
Replies: 113
Views: 19680

Re: Umbrella Policy: Right amount for $7 mil net worth?

Make sure you understand what they won't cover as well. If you start a bar fight or ram someone in a road-rage incident or shoot an intruder in your home you are on your own, insurance will deny your claim. If they can show intent vs accident then you are SOL. Also remember one of the biggest, most ...
by 1CEBITN
Wed Jun 27, 2018 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Charity giving how much? How much do other retirees give?
Replies: 44
Views: 4471

Re: Charity giving how much? How much do other retirees give?

Set a percentage to give as your #1 expense item. If you give what is left over, you will not receive the benefits of giving. Would you please list the benefits which you see? If you have to ask you don't get it... Keep your money. I know what I think the benefits are. I am asking YOU what YOU thin...
by 1CEBITN
Wed Jun 27, 2018 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: How many months of living expenses would you keep in your bank.
Replies: 61
Views: 4554

Re: How many months of living expenses would you keep in your bank.

One year is what helps me sleep at night. I don't want mine invested in anything that can lose value, especially stocks and bonds. Depending on your line of work you may be more susceptible to losing your job during a recession and if you have your emergency fund in equities you will all of the sudd...
by 1CEBITN
Tue Jun 26, 2018 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Charity giving how much? How much do other retirees give?
Replies: 44
Views: 4471

Re: Charity giving how much? How much do other retirees give?

Dottie57 wrote:
Mon Jun 25, 2018 2:41 pm
basspond wrote:
Mon Jun 25, 2018 2:33 pm
Set a percentage to give as your #1 expense item. If you give what is left over, you will not receive the benefits of giving.
Would you please list the benefits which you see?
If you have to ask you don't get it... Keep your money.
by 1CEBITN
Mon Jun 25, 2018 5:41 pm
Forum: Personal Investments
Topic: Help me understand Roth vs Traditional IRA
Replies: 34
Views: 3664

Re: Help me understand Roth vs Traditional IRA

There are other factors that go into the decision as well. I, personally am striving for 50/50 traditional and Roth to provide flexibility based on what the then-current administration decides to subject us to tax-wise when I retire. A couple things that have very little to do with math to consider:...
by 1CEBITN
Fri Jun 22, 2018 10:37 am
Forum: Personal Investments
Topic: Wife's 403b provider switching - higher fees - how often can you rollover?
Replies: 8
Views: 615

Re: Wife's 403b provider switching - higher fees - how often can you rollover?

Please identify the three Vanguard funds and the bond fund which you mentioned, giving fund names, tickers and expense ratios. Are there other providers available in her 403b plan? If so who are the other providers? Do you an idea about how long she might remain with this employer? Is there an empl...
by 1CEBITN
Fri Jun 22, 2018 10:01 am
Forum: Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1787

Re: I want to cash in VTSAX

That sounds a lot like market timing which is a bad idea in general unless you have a very accurate magic 8-ball. That said, if you need the money for something then sure, pull it out. If your risk tolerance has eroded and you want to something "safer" with the money so you sleep better at night the...
by 1CEBITN
Thu Jun 21, 2018 11:52 am
Forum: Personal Investments
Topic: Wife's 403b provider switching - higher fees - how often can you rollover?
Replies: 8
Views: 615

Re: Wife's 403b provider switching - higher fees - how often can you rollover?

Thanks folks, I couldn't find the IRS rule on this so I must not have been searching with the right terms. She is 45 so looks like we are stuck. She teaches at a smaller private school so the investment options are very limited. There is a vanguard small cap, mid cap, and large cap fund but no index...
by 1CEBITN
Thu Jun 21, 2018 11:43 am
Forum: Personal Investments
Topic: Life Strategy Growth Fund, Target Fund, or Total Stock Market
Replies: 45
Views: 3725

Re: Life Strategy Growth Fund, Target Fund, or Total Stock Market

The Tax Deferred Annuity is your 403B tax-deferred retirement savings program. Like others have said, there is likely a catch (as with all annuity products) to get any kind of guaranteed return post-retirment - I.E. you would have to turn it into an annuity product where they keep your money and pay...
by 1CEBITN
Wed Jun 20, 2018 6:55 pm
Forum: Personal Investments
Topic: Wife's 403b provider switching - higher fees - how often can you rollover?
Replies: 8
Views: 615

Wife's 403b provider switching - higher fees - how often can you rollover?

Hi folks, I just got a letter in the mail saying my wife's 403b with her present employer is moving to another proprietor, one who charges 1% annually just to have the pleasure of taking her money. Also, their TD fund options are American Funds with around 0.45% fees. Her current 403B costs $5/year ...
by 1CEBITN
Mon Jun 18, 2018 4:25 pm
Forum: Personal Investments
Topic: Having a hard time pulling the trigger...
Replies: 25
Views: 2755

Re: Having a hard time pulling the trigger...

... For more background, I do max out my 401k, my taxes are already going to be sky high this year so I don't think a back-door Roth is appropriate, unless I mis-understood how that works, I don't need to pay any more taxes this year. ... You may be misunderstanding the backdoor Roth. Because the m...
by 1CEBITN
Mon Jun 18, 2018 3:33 pm
Forum: Personal Investments
Topic: Having a hard time pulling the trigger...
Replies: 25
Views: 2755

Re: Having a hard time pulling the trigger...

That's actually a great idea about changing the TD fund in my 401k, BL. Pretty much the only bond fund I have access to in my 401k is Fidelity investment grade bond (FBNDX) which has decent returns but the ER is .45%. Not terrible but not great either. I could pull some money out of the 2040 fund in...
by 1CEBITN
Mon Jun 18, 2018 12:47 pm
Forum: Personal Investments
Topic: Having a hard time pulling the trigger...
Replies: 25
Views: 2755

Re: Having a hard time pulling the trigger...

Wow, lots of good advice here. I think the point about not being as risk tolerant as I think I should be is valid, and very much true. The DCA route is a great idea, I have done that before when converting old 401ks into IRAs, and wasn't thinking about that. If they gave me my bonus in VTI I wouldn'...
by 1CEBITN
Mon Jun 18, 2018 11:14 am
Forum: Personal Investments
Topic: Having a hard time pulling the trigger...
Replies: 25
Views: 2755

Having a hard time pulling the trigger...

Hi BH folks! I've posted a few different questions related to this topic and think I understand what the "right" thing to do is from a BH philosophy perspective but I'm having a really hard time pulling the trigger. Net-net is I had a great year at work, resulting in a $250k bonus after taxes. I rea...
by 1CEBITN
Thu May 31, 2018 2:09 pm
Forum: Personal Investments
Topic: Retirement is all TD funds, what to do for taxable add-ons $$?
Replies: 8
Views: 770

Re: Retirement is all TD funds, what to do for taxable add-ons $$?

Got it. Guess that makes sense since bonds pay interest and not dividends like stocks do, I've never held investments outside of my retirement accounts so this strategy is all new to me, thanks for the help! This "bonus" is going to bump me up at least one bracket on the tax scale too so definitely ...
by 1CEBITN
Thu May 31, 2018 10:57 am
Forum: Personal Investments
Topic: Retirement is all TD funds, what to do for taxable add-ons $$?
Replies: 8
Views: 770

Re: Retirement is all TD funds, what to do for taxable add-ons $$?

Option 2 is what I am leaning towards as well. One question after looking through the link on tax-friendly investing though. I get that buying bond funds in a taxable account is a bad idea because of the higher return as income every year but if the bond funds are inside a TD fund wouldn't it be mor...
by 1CEBITN
Thu May 31, 2018 10:07 am
Forum: Personal Investments
Topic: Retirement is all TD funds, what to do for taxable add-ons $$?
Replies: 8
Views: 770

Re: Retirement is all TD funds, what to do for taxable add-ons $$?

Thanks, guys! That's a great link, much appreciated!
by 1CEBITN
Wed May 30, 2018 4:08 pm
Forum: Personal Investments
Topic: Retirement is all TD funds, what to do for taxable add-ons $$?
Replies: 8
Views: 770

Retirement is all TD funds, what to do for taxable add-ons $$?

So, my 401k (50/50 roth/traditional), Roth IRA, and IRA are all invested in TD funds so my AA is pretty much 70/30 stocks/bonds (I'm 44, plan to work into my 60's). I was lucky enough to have a blue-bird type bonus at work in the low 6-figures and want to invest it. Unfortunately (or fortunately dep...
by 1CEBITN
Thu May 24, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 600
Views: 50851

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

I chose Roth 401k/IRA as soon as it was available to me more for safety and control of my estate and as a hedge against higher taxes since that isn't something anyone can predict unless you are retiring in the next couple years. Just because you can live off of less money in retirement doesn't mean ...
by 1CEBITN
Fri May 18, 2018 12:19 pm
Forum: Personal Investments
Topic: Fellow non-529ers
Replies: 43
Views: 3970

Re: Fellow non-529ers

While I certainly can appreciate your desire for flexibility, you can still take some advantage of 529 plans' tax advantages even if you do not plan to fully fund your children's education from a 529 plan. For example, you could devote 50% of your planned college savings to a 529 account and the re...
by 1CEBITN
Fri May 18, 2018 11:53 am
Forum: Personal Investments
Topic: Do you manage your asset allocation like a Target Fund?
Replies: 23
Views: 3423

Re: Do you manage your asset allocation like a Target Fund?

I've been trying to figure out the same question and I'm still on the fence. I currently maintain around a 70/30 equities/fixed ratio in my overall portfolio but have some extra cash to invest now. I'm maxing my 401k, can't put any money in Roth or traditional IRA, and am pretty close to maxed on my...
by 1CEBITN
Mon May 14, 2018 3:13 pm
Forum: Personal Investments
Topic: Is Whole Life Insurance Worth It?
Replies: 54
Views: 5244

Re: Is Whole Life Insurance Worth It?

There is a reason that there is a warning about Whole life threads and it's not because it's a great investment (it's absolutely not). https://www.bogleheads.org/forum/viewtopic.php?f=2&t=57154 I can assure you I'm no sock puppet but I'm also no blind follower. I love the three/four fund investment...
by 1CEBITN
Mon May 14, 2018 1:05 pm
Forum: Personal Investments
Topic: Is Whole Life Insurance Worth It?
Replies: 54
Views: 5244

Re: Is Whole Life Insurance Worth It?

IMHO, once you are out of tax-advantaged options whole life CAN absolutely make sense as a part of your portfolio (the "safe" part, similar to how people use bonds but without any of the risk). No it doesn't make sense at all. There are a ton of tax-efficient choices out there that are far superior...
by 1CEBITN
Mon May 14, 2018 9:39 am
Forum: Personal Investments
Topic: Is Whole Life Insurance Worth It?
Replies: 54
Views: 5244

Re: Is Whole Life Insurance Worth It?

The fact that you can still contribute to a Roth account tells me the answer should be term life. When I was younger I bought enough term to cover my salary until my young kids were out of college plus college plus enough to pay off my house so my wife wouldn't have to go back to work until she want...
by 1CEBITN
Wed May 09, 2018 10:53 am
Forum: Personal Investments
Topic: Stick with E*Trade or move to Vanguard?
Replies: 15
Views: 2092

Re: Stick with E*Trade or move to Vanguard?

I'm with you on preferring mutual funds, ruralavalon, the more I read about ETFs the less I like them unless I am going to be moving in and out of investments more frequently than I plan to. On the date-based fund, since the Vanguard 2055 fund (VFFVX) is made up of the same four index funds I was go...
by 1CEBITN
Tue May 08, 2018 2:32 pm
Forum: Personal Investments
Topic: Stick with E*Trade or move to Vanguard?
Replies: 15
Views: 2092

Re: Stick with E*Trade or move to Vanguard?

Wow, you guys/gals are a wealth of information, I am glad I asked! So, the reason for E*Trade is my company puts any bonuses they give out in stock into that account so I can't get rid of it totally. I can certainly move cash out and over to Vanguard though. I don't really fully understand the downs...
by 1CEBITN
Mon May 07, 2018 2:23 pm
Forum: Personal Investments
Topic: Stick with E*Trade or move to Vanguard?
Replies: 15
Views: 2092

Stick with E*Trade or move to Vanguard?

Hello everyone, I came across this site looking for advice on where to invest a small boon from a work project. I currently have an E*Trade brokerage account but can not buy VTSAX there, I am stuck with the higher sales charge of VTSMX and, over 20 years time, that .13% difference will be a big numb...