Search found 94 matches

by Invest_Wisely
Wed Sep 30, 2020 1:51 pm
Forum: Personal Investments
Topic: Backdoor Roth for College Savings
Replies: 16
Views: 999

Re: Backdoor Roth for College Savings

humblecoder wrote: Wed Sep 30, 2020 8:21 am
If you are worried about your child not attending college due to a disability, you can roll the 529 into an ABLE account without a penalty.
Good point that I wasn't aware of. Thank you.
by Invest_Wisely
Tue Sep 29, 2020 10:41 pm
Forum: Personal Investments
Topic: Backdoor Roth for College Savings
Replies: 16
Views: 999

Re: Backdoor Roth for College Savings

Make sure you're maxing out all traditional options before using either Roth or 529. Curious as to this comment. I've seen others post something similar. We are not quite maxing out both our 401ks, but we're up there (obviously well above the match). We feel quite comfortable with reaching our reti...
by Invest_Wisely
Tue Sep 29, 2020 3:35 pm
Forum: Personal Investments
Topic: Backdoor Roth for College Savings
Replies: 16
Views: 999

Re: Backdoor Roth for College Savings

However, that said, I don't like this plan. Retirement accounts should be for retirement. Roth monies are very valuable in retirement (esp for your heirs!) If you plan to use these funds for education, use a 529 and take the deduction. The money grows tax free, just like the Roth. Use the Roth as a...
by Invest_Wisely
Tue Sep 29, 2020 3:13 pm
Forum: Personal Investments
Topic: Backdoor Roth for College Savings
Replies: 16
Views: 999

Re: Backdoor Roth for College Savings

I'm exploring different options for college savings for my newborn. Among these is using a Roth IRA. My wife and I make above the annual income limits to contribute to a Roth; however, I wonder if a series of backdoor Roths would make sense as a college savings strategy? Some quick back-of-the-enve...
by Invest_Wisely
Tue Sep 29, 2020 11:53 am
Forum: Personal Investments
Topic: Backdoor Roth for College Savings
Replies: 16
Views: 999

Backdoor Roth for College Savings

I'm exploring different options for college savings for my newborn. Among these is using a Roth IRA. My wife and I make above the annual income limits to contribute to a Roth; however, I wonder if a series of backdoor Roths would make sense as a college savings strategy? Some quick back-of-the-envel...
by Invest_Wisely
Tue Sep 29, 2020 9:50 am
Forum: Personal Investments
Topic: Calculating Net-of-Fees Return
Replies: 7
Views: 521

Re: Calculating Net-of-Fees Return

The fees are multiplied, not added. The one year return is 1.05*(1-.0022), with the expenses taking a portion of the growth as well. That is, a $10,000 investment would grow to $10,500 without expenses if the market rises 5% in one year, and fees take 0.22% of that, which is $23. This would make th...
by Invest_Wisely
Tue Sep 29, 2020 9:46 am
Forum: Personal Investments
Topic: Calculating Net-of-Fees Return
Replies: 7
Views: 521

Re: Calculating Net-of-Fees Return

If you 1) set start-of-year (SOY) to $10,000 2) calculate the end-of-year without fees (EOY) as 1.05 * SOY 3) calculate fees as 0.22% * (SOY + EOY) / 2 4) subtract fees from EOY 5) set SOY for next year to the result of step 4 6) go back to step 2, etc. 7) add the fees for each year ...it matches w...
by Invest_Wisely
Mon Sep 28, 2020 7:44 pm
Forum: Personal Investments
Topic: Calculating Net-of-Fees Return
Replies: 7
Views: 521

Calculating Net-of-Fees Return

I'm looking through some literature on available 529 plans for my newborn. The plan description and agreement provides a breakdown of fees for various investment portfolios. As one example, here is the fee structure for one of the Target Date funds (I understand target date funds have generally high...
by Invest_Wisely
Thu Jun 04, 2020 11:55 am
Forum: Personal Finance (Not Investing)
Topic: 529 Plan Strategy
Replies: 30
Views: 2176

Re: 529 Plan Strategy

OP has not given us a full rundown of income and assets. 24% marginal rate could be as much as $320k a year if married filing jointly. Most boggleheads should be able to max out other tax advantaged space at that income level. Obviously, if the OP is not doing so, 529 should probably not be first i...
by Invest_Wisely
Wed Jun 03, 2020 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Plan Strategy
Replies: 30
Views: 2176

529 Plan Strategy

My wife and I are expecting our first born any day now. We're both mid-late 30s with no debt (planning to purchase a home with 15-20% down within the year), 6 month emergency fund, in the 24% tax bracket, contributing each paycheck to 401k plans. We're trying to settle on a contribution to our child...
by Invest_Wisely
Thu May 07, 2020 10:11 am
Forum: Personal Investments
Topic: Money Market Fund Dividends
Replies: 5
Views: 481

Re: Money Market Fund Dividends

Money market dividends are declared daily and paid monthly. Using your example, if the monthly dividend is $0.00193, a typical declared daily dividend could be $0.00193/30 = $0.00006433 per share (it varies day-to-day). All the declared daily dividends are added up and paid out once a month. So wha...
by Invest_Wisely
Thu May 07, 2020 9:47 am
Forum: Personal Investments
Topic: Money Market Fund Dividends
Replies: 5
Views: 481

Money Market Fund Dividends

I have a Vanguard Money Market sweep account (VMFXX Federal Money Market Fund). It typically holds so little money, that I don't actually look at the dividend payouts. However, I'm curious how dividends are paid for money market accounts. For example, let's say the per share distribution on 7/31/201...
by Invest_Wisely
Wed Apr 29, 2020 9:01 am
Forum: Personal Finance (Not Investing)
Topic: New 2020 Form W-4
Replies: 7
Views: 593

Re: New 2020 Form W-4

Yes, using our homegrown spreadsheets for calculating - federal and state taxes, and - withholding based on income alone Then it's just a matter of using the W-4 final box for Step 3 to reduce, or Step 4c to increase, withholding, so the final amount matches the tax liability (considering amounts a...
by Invest_Wisely
Tue Apr 28, 2020 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: New 2020 Form W-4
Replies: 7
Views: 593

New 2020 Form W-4

I believe my wife and I have too much withheld from our regular paychecks for federal taxes. My question is how to correct this using the new 2020 Form W-4. I consulted IRS Publication 15-T (https://www.irs.gov/pub/irs-pdf/p15t.pdf) using the percentage method to calculate the amount currently withh...
by Invest_Wisely
Wed Apr 22, 2020 1:49 pm
Forum: Investing - Theory, News & General
Topic: How are expenses (E/R) paid from 401k (TSP)
Replies: 6
Views: 252

Re: How are expenses (E/R) paid from 401k (TSP)

Don't overthink it. The funds you invest in (C, I, S, etc) are returning slightly less growth than they otherwise would because expenses are being taken out. All that text you quoted was trying to say that if the stocks owned by the C fund increase by 1.0000% on a Wednesday, your C fund price will ...
by Invest_Wisely
Wed Apr 22, 2020 1:27 pm
Forum: Investing - Theory, News & General
Topic: How are expenses (E/R) paid from 401k (TSP)
Replies: 6
Views: 252

How are expenses (E/R) paid from 401k (TSP)

I'm trying to determine how administrative expenses are paid from my federal Thrift Savings Plan (TSP). I received this information from the TSP. "The daily change in TSP share prices reflects all investment income (interest on short-term investments, dividends, capital gains or losses, and sec...
by Invest_Wisely
Tue Apr 21, 2020 7:42 am
Forum: Personal Investments
Topic: Historical Per Share Dividends - where to find??
Replies: 3
Views: 298

Re: Historical Per Share Dividends - where to find??

Hi: We have per share distribution information available on the blog: Here are the links: * Vanguard per share distributions * Fidelity and Schwab index funds: per share distributions Information is derived from annual reports (historical annual reports on the EDGAR database). regards, Amazing. Tha...
by Invest_Wisely
Mon Apr 20, 2020 2:36 pm
Forum: Personal Investments
Topic: Historical Per Share Dividends - where to find??
Replies: 3
Views: 298

Historical Per Share Dividends - where to find??

I'm looking for a history of certain fund per share dividends. For example, I'd like to find the historical dividend distribution for VTSAX back to fund inception (11/13/2000). Yahoo! Finance has this data (https://finance.yahoo.com/quote/VTSAX/history?period1=974073600&period2=1587340800&in...
by Invest_Wisely
Sat Apr 18, 2020 4:13 pm
Forum: Personal Investments
Topic: Rounding Method for Retirement Contributions (TSP)
Replies: 7
Views: 360

Re: Rounding Method for Retirement Contributions (TSP)

On a related note, when I check my current fund balances and multiply the current shares by the share price, I get the odd rounding errors on some total balances as well. In some instances, when traditional rounding rules would suggest rounding up, they round down and vice versa. For example: Shares...
by Invest_Wisely
Sat Apr 18, 2020 2:58 pm
Forum: Personal Investments
Topic: Rounding Method for Retirement Contributions (TSP)
Replies: 7
Views: 360

Re: Rounding Method for Retirement Contributions (TSP)

This is just a guess, but what might be happening is you are just thinking about the total, but they are splitting up, and rounding both of, the personal and agency contributions. So for example, you get a total of $239.9228 and expect it to round down to $239.92. But what they are doing is like: A...
by Invest_Wisely
Sat Apr 18, 2020 12:10 pm
Forum: Personal Investments
Topic: Rounding Method for Retirement Contributions (TSP)
Replies: 7
Views: 360

Re: Rounding Method for Retirement Contributions (TSP)

Let's say I contribute $922.78 every two weeks. Here's how contribution *should* get divvied up based on the contributions set above: G Fund: $239.92 (rounded down from $239.92 2 8) <-- Because the digit beyond the 92 cents is a 2 it gets dropped. C Fund: $350.66 (rounded up from $350.65 6 4) <-- B...
by Invest_Wisely
Sat Apr 18, 2020 11:28 am
Forum: Personal Investments
Topic: Rounding Method for Retirement Contributions (TSP)
Replies: 7
Views: 360

Rounding Method for Retirement Contributions (TSP)

This is a bit in the weeds, but I'm having trouble understanding how my retirement account is rounding my biweekly contributions. I'm invested in the federal government's Thrift Savings Plan (or TSP) whereby my total biweekly contributions get divvied up by fund based on the allocation I've set for ...
by Invest_Wisely
Sat Mar 28, 2020 2:27 pm
Forum: Investing - Theory, News & General
Topic: Comparing portfolio performance to S&P
Replies: 6
Views: 310

Re: Comparing portfolio performance to S&P

As long as there were no external trades during this time. Meaning no cash in or out, however, rebalancing doesn't matter... Performance = (EMV-BMV)/BMV Where: BMV is beginning market value EMV is ending market value So effectively reduce the shares added from dividends reinvested to calculate a tr...
by Invest_Wisely
Sat Mar 28, 2020 9:08 am
Forum: Investing - Theory, News & General
Topic: Comparing portfolio performance to S&P
Replies: 6
Views: 310

Comparing portfolio performance to S&P

This should be a simple calculation, but I'm striking out. I'd like to compare my portfolio performance to recent market performance, but the numbers aren't adding up. Specifically, I'm comparing the % fall from recent highs in the market to that of my portfolio. For example, since February 19th, th...
by Invest_Wisely
Tue Mar 10, 2020 1:31 pm
Forum: Personal Investments
Topic: Rebalancing during a Market Downturn
Replies: 5
Views: 711

Re: Rebalancing during a Market Downturn

What does your IPS say on the topic of re-balancing? 2.5% seems like a pretty tight range to me. See link if you don't have an IPS. https://www.bogleheads.org/wiki/Investment_policy_statement Regards, It's a fair question and admittedly I haven't established a hard-and-fast rebalancing strategy. I ...
by Invest_Wisely
Tue Mar 10, 2020 12:51 pm
Forum: Personal Investments
Topic: Rebalancing during a Market Downturn
Replies: 5
Views: 711

Rebalancing during a Market Downturn

I'm curious everyone's thoughts on reallocating during a market downturn as we're experiencing. My asset allocation is only off by about 2.5% from my 80/20 stock/bond target mix. Would you let it ride or reallocate on the downswing? It's a pretty painless process for me, without any fees or tax impl...
by Invest_Wisely
Thu Mar 05, 2020 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Score Impact When Dropping as Authorized Users
Replies: 10
Views: 443

Re: Credit Score Impact When Dropping as Authorized Users

Jack FFR1846 wrote: Thu Mar 05, 2020 1:57 pm It was his daughter who was the AU. All he'd have to do is go into his tax files to see her SS number.

And I am absolutely sure that AUs don't get cards mailed to them. If that were the case, nobody would sell tradelines.
Yes, precisely.
by Invest_Wisely
Thu Mar 05, 2020 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Score Impact When Dropping as Authorized Users
Replies: 10
Views: 443

Re: Credit Score Impact When Dropping as Authorized Users

Brianmcg321 wrote: Thu Mar 05, 2020 1:44 pm You need to get a copy of the book “Boundaries” to your FIL for his birthday.
I've read that one myself. I should loan him my copy!
by Invest_Wisely
Thu Mar 05, 2020 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Score Impact When Dropping as Authorized Users
Replies: 10
Views: 443

Credit Score Impact When Dropping as Authorized Users

I have a delicate family matter on which I could use some advice. First, a little about me and my wife: Married Me - 36 years old Her - 32 years old No debt 5 month emergency fund **Rent but saving to own (home purchase in 1-1.5 years) Both employed full time Comparable salaries 24% Marginal Tax Bra...
by Invest_Wisely
Wed Mar 04, 2020 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance - Policy Schedule Question
Replies: 6
Views: 229

Re: Life Insurance - Policy Schedule Question

BruDude wrote: Wed Mar 04, 2020 4:04 pm The policy doesn't end after 20 years, it changes to annually renewable term insurance with a premium that increases each year based on age if you wanted to keep it.
I assume this is a fairly standard practice?
by Invest_Wisely
Wed Mar 04, 2020 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance - Policy Schedule Question
Replies: 6
Views: 229

Life Insurance - Policy Schedule Question

I recently applied to and was approved for a life insurance policy with Protective. It's a 20-year term at I think a very reasonable annual premium for someone my age (36 years old). In reviewing the policy, I'm a little confused as to the policy end date and policy schedule. Although the policy is ...
by Invest_Wisely
Tue Feb 18, 2020 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Credit Limit Increase and Credit Score
Replies: 19
Views: 1336

Re: Credit Limit Increase and Credit Score

Yes it will. Credit utilization is looked at in 2 ways, either of which can hurt you. First is your average credit utilization percentage. But each card also has a utilization percentage. I can use myself as an example. On January 7, my utilization was 2% and highest credit card utilization was und...
by Invest_Wisely
Tue Feb 18, 2020 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Credit Limit Increase and Credit Score
Replies: 19
Views: 1336

Re: Credit Limit Increase and Credit Score

Why not have both you and your wife open the card and split the bills so that you don't use too much of the credit limit? Or get a few more cards and do category spending to get higher than 2%. By the way, you mention "we" have a credit limit. But there is no "we" with credit sc...
by Invest_Wisely
Tue Feb 18, 2020 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Credit Limit Increase and Credit Score
Replies: 19
Views: 1336

Credit Limit Increase and Credit Score

I recently opened a new Citi Double Cash Card. Previously my wife and I paid most bills via debit/bank account, but we are trying a new strategy charging most bills and expenses to the Citi card to realize the 2% cash back rewards. We have no debt (see information about us below). The Citi card was ...
by Invest_Wisely
Wed Jan 22, 2020 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Back Credit Card Reward Strategy
Replies: 21
Views: 2052

Re: Cash Back Credit Card Reward Strategy

Curious why folks recommend the Fidelity 2% card over the Citi Double Cash Card? Fidelity seems like extra work with the restriction that you must run the cash back through a Fidelity brokerage account. I'm aiming for the most bang for my buck (efficiency) with the least amount of extra time/effort.
by Invest_Wisely
Wed Jan 22, 2020 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Back Credit Card Reward Strategy
Replies: 21
Views: 2052

Re: Cash Back Credit Card Reward Strategy

azurik wrote: Wed Jan 22, 2020 1:06 pm I'm surprised you've been using debit cards for so long... think of all the rewards you've missed out on (and the protection benefits) :shock:
Trying to make up for this blunder now :D
by Invest_Wisely
Wed Jan 22, 2020 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Back Credit Card Reward Strategy
Replies: 21
Views: 2052

Re: Cash Back Credit Card Reward Strategy

Do you live in an area served by Citizens Bank? They have a promotion now where their normal 1.8% back card will give you back another 3.2% (total 5%) until March 31. Then it reverts to 1.8%, which isn't all that bad. The catch is that you have to apply in a branch. They also have rewards for openi...
by Invest_Wisely
Wed Jan 22, 2020 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Back Credit Card Reward Strategy
Replies: 21
Views: 2052

Re: Cash Back Credit Card Reward Strategy

I have both. I use the Costco Visa for restaurants and travel (3%) and gas (4%) and Costco purchases (2%). I try to fill up my car when I am shopping for food/clothing at Costco. I use the Citi Double Cash Card for all other shopping, except I use the Amazon Visa for Amazon purchases. Good to know....
by Invest_Wisely
Wed Jan 22, 2020 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Back Credit Card Reward Strategy
Replies: 21
Views: 2052

Cash Back Credit Card Reward Strategy

My wife and I are considering a implementing a cash back rewards strategy for the year ahead. We currently have two credit cards each that we only intermittently use, primarily for travel purchases. 90+% of our purchases are currently via debit card (which we're thinking of switching to credit cards...
by Invest_Wisely
Fri Jan 17, 2020 3:21 pm
Forum: Personal Investments
Topic: Assessing Fees for HSA Bank Investments
Replies: 7
Views: 603

Re: Assessing Fees for HSA Bank Investments

I don't have GEHA anymore, but in the past (I.e. the past several years) GEHA paid all HSA Bank fees. I left almost nothing in HSA Bank and invested the rest. I did not use the Devenir option, I used the TD Ameritrade option and bought ETFs. There were no added fees that I recall. That is my unders...
by Invest_Wisely
Fri Jan 17, 2020 3:05 pm
Forum: Personal Investments
Topic: Assessing Fees for HSA Bank Investments
Replies: 7
Views: 603

Re: Assessing Fees for HSA Bank Investments

I don't have GEHA anymore, but in the past (I.e. the past several years) GEHA paid all HSA Bank fees. I left almost nothing in HSA Bank and invested the rest. I did not use the Devenir option, I used the TD Ameritrade option and bought ETFs. There were no added fees that I recall. I hadn't seen the...
by Invest_Wisely
Fri Jan 17, 2020 12:24 pm
Forum: Personal Investments
Topic: Assessing Fees for HSA Bank Investments
Replies: 7
Views: 603

Assessing Fees for HSA Bank Investments

I enrolled with a new high deductible health plan with the federal government (GEHA HDHP) for 2020. The HSA for this plan is administered through HSA Bank. HSA Bank allows me to invest my funds once I have a minimum of $1,000 in my HSA Bank cash account (not there yet since we're just starting the y...
by Invest_Wisely
Wed Jan 15, 2020 1:15 pm
Forum: Personal Investments
Topic: Best Thrift Savings Plan (TSP) book or resource?
Replies: 14
Views: 1176

Re: Best Thrift Savings Plan (TSP) book or resource?

Morgan Dollar 1921 wrote: Tue Jan 14, 2020 3:58 pm NARFE, an organization for active and retired federal employees, I will also grab you a book name later.
Look forward to that. Thank you!
by Invest_Wisely
Tue Jan 14, 2020 1:22 pm
Forum: Personal Investments
Topic: Best Thrift Savings Plan (TSP) book or resource?
Replies: 14
Views: 1176

Best Thrift Savings Plan (TSP) book or resource?

I'm a fairly new federal employee and I'm looking for a good resource to understand the ins and outs of the federal Thrift Savings Plan, or TSP. The Bogleheads TSP Wiki has some great information (https://www.bogleheads.org/wiki/Thrift_Savings_Plan), but I'm seeking more. There are a lot of rules an...
by Invest_Wisely
Tue Jan 07, 2020 12:48 pm
Forum: Personal Investments
Topic: TSP C/S Fund to Replicate Total Stock Market
Replies: 6
Views: 825

Re: TSP C/S Fund to Replicate Total Stock Market

I see in the Wiki where it says that (including the footnote that links to the original statement). However, I'm not completely convinced that the TSP actually meant it to be interpreted as 87% C + 13% S. In the current TSP, two different index families are involved - the S&P for the 500 index ...
by Invest_Wisely
Mon Jan 06, 2020 3:35 pm
Forum: Personal Investments
Topic: TSP C/S Fund to Replicate Total Stock Market
Replies: 6
Views: 825

TSP C/S Fund to Replicate Total Stock Market

I'm still a bit unclear as to what C to S fund ratio should be used in the TSP to replicate the Total Stock Market (e.g., VTSAX). The Bogleheads Thrift Savings Plan (TSP) Wiki (https://www.bogleheads.org/wiki/Thrift_Savings_Plan) suggests a 6- or 7-to-1 ratio (C to S), others suggest a 4:1 C to S, a...
by Invest_Wisely
Tue Dec 31, 2019 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Life Insurance - Where to Find?
Replies: 20
Views: 835

Re: Life Insurance - Where to Find?

Also, you mentioned a TSP, meaning one of you is a federal employee. FEGLI is terrible coverage at a terrible price as you get older. Do not bank on keeping it. I dropped FEGLI as soon as I bought my term policy. Yes, I have noticed that. I pay nearly $500/year for a $250k policy through FEGLI. See...
by Invest_Wisely
Mon Dec 30, 2019 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance - Where to Find?
Replies: 20
Views: 835

Re: Life Insurance - Where to Find?

Here's my 2 cents. It's not the mainstream advice, but it makes sense to me and is a more specific rule of thumb than a straight % of income. I think this will show you need less insurance than others recommend, but hopefully you will feel more comfortable understanding your need better. If you wer...
by Invest_Wisely
Mon Dec 30, 2019 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance - Where to Find?
Replies: 20
Views: 835

Life Insurance - Where to Find?

My wife and I recently found out we are expecting for the first time (child due in June), and neither of us carry life insurance outside of standard work policies. With a child on the way, and a plan to purchase our first home in 2021, we figure it's time add a few life insurance policies. First a l...
by Invest_Wisely
Thu Nov 07, 2019 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Health Insurance - HSA during birth year?
Replies: 27
Views: 1282

Re: Health Insurance - HSA during birth year?

Get the non HDHP GEHA plan that covers maternity 100% I paid $0 out of pocket for both my care and the birth of my children. Then switched to the HDHP GEHA and started maxing my HSA contributions. FYI - I had two of the easiest, complication free, super fast easy labor & pregnancies ever, but h...