Search found 109 matches

by lkar
Fri Jun 21, 2019 11:14 am
Forum: Personal Investments
Topic: Are there any tips / best practices for an Inherited IRA?
Replies: 27
Views: 4785

Re: Are there any tips / best practices for an Inherited IRA?

I'm sorry about your mom, OP. I thought a lot about what to do with an inherited IRA and how to deal with the distributions. In the end, I never ended up satisfying myself of a good answer. I think the conventional wisdom is to put all bonds in there as part of your three-bond portfolio. But I actua...
by lkar
Fri Jun 07, 2019 10:50 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2617
Views: 201353

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

I know there is no way to know this, but I am thinking of putting 5% of my portfolio in and wondering if I should just jump in. It doesn't seem like DCA would make sense for 5%. The recent fairly significant drop in long term rates is giving me a bit of pause on jumping in now. Thoughts? How long a...
by lkar
Thu Jun 06, 2019 5:01 pm
Forum: Investing - Theory, News & General
Topic: Convince me not to try to time the market
Replies: 27
Views: 2092

Re: Convince me not to try to time the market

You're not going to sell for 17 years at a minimum. Think about what that means for a second. It's hard to fathom what it means right now, especially if you look at your balances from time to time. But it means that all the ups and downs that this money goes through over the next 17 years really don...
by lkar
Tue Jun 04, 2019 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Is it Wise to Remove Escrow if Bank Allows it?
Replies: 87
Views: 5734

Re: Is it Wise to Remove Escrow if Bank Allows it?

Our assessor and our insurance company don't charge for credit card payments so I love no escrow, to get the points or cashback.
by lkar
Tue Jun 04, 2019 9:24 am
Forum: Personal Investments
Topic: Would you sell AAPL to reduce stock exposure?
Replies: 20
Views: 1701

Re: Would you sell AAPL to reduce stock exposure?

Apple is the only individual stock I own or have owned for a long time. I bought a little in 2010 and a little more in 2016. I have never been able to bring myself to sell it because I believe in the company and think most of the ups and downs are short term noise. That said, as I’ve moved to a simp...
by lkar
Sat Jun 01, 2019 11:17 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2617
Views: 201353

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Fifth group: those whose actually follow Boglehead fundamentals and wonder why such a thread is even here (and has almost 2000 posts). I'm sorry about the four groups point. I really wasn't trying to provocative or throw things off track. It was a bit tongue in cheek, but my main goal is to try to ...
by lkar
Fri May 31, 2019 10:55 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2617
Views: 201353

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Don't be ridiculous. There's off the ranch, and there's on an entirely different planet. Complex leveraging of one's portfolio (or whatever it is you are promoting) is pretty far off the posted Wiki Boglehead fundamentals of three funds and simplicity and set-it-and-forget-it. Maybe it's what the c...
by lkar
Fri May 31, 2019 9:46 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2617
Views: 201353

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Can't wait to see the comments in this thread when the volatility goes the other way lol Will be interesting indeed, a bit sad really considering some actually moved their entire liquid portfolio into this... I'll enjoy watching the ride in both directions. I think there are probably four groups. T...
by lkar
Fri May 31, 2019 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Forgot to mail check to IRS for taxes ($4000) - what now
Replies: 24
Views: 2782

Re: Forgot to mail check to IRS for taxes ($4000) - what now

I’m a very small sample size but I would probably wait just a little bit longer. I know this is not the majority view, but the one time I tried to be proactive with the IRS it was a mess. Do the expected thing and wait until you get a letter and then follow it exactly. The IRS seems set up to antic...
by lkar
Fri May 31, 2019 9:15 pm
Forum: Personal Investments
Topic: Timing the Market (for Roth Conversion)?
Replies: 14
Views: 1232

Re: Timing the Market (for Roth Conversion)?

I'm going convert a traditional IRA to a Roth IRA for the first time ever this year, and I'm wondering whether there are any thoughts on "timing" the conversion. Obviously "timing" the market here won't be as pernicious as trying to time the market investment wise, but the higher the amount in the ...
by lkar
Fri May 31, 2019 9:00 pm
Forum: Personal Investments
Topic: Timing the Market (for Roth Conversion)?
Replies: 14
Views: 1232

Re: Timing the Market (for Roth Conversion)?

I'm going convert a traditional IRA to a Roth IRA for the first time ever this year, and I'm wondering whether there are any thoughts on "timing" the conversion. Obviously "timing" the market here won't be as pernicious as trying to time the market investment wise, but the higher the amount in the ...
by lkar
Fri May 31, 2019 5:39 pm
Forum: Personal Investments
Topic: After tax 401k to Roth
Replies: 11
Views: 675

Re: After tax 401k to Roth

OP's questions seem pretty straightforward. 1. After-tax in IRA to Roth 401k in plan conversion: Earnings in the 401k prior to the conversion are taxed as income. Contributions go over tax free. 2. If Roth 401k rolled to Roth IRA after job separation can contributions be taken out even if not qualif...
by lkar
Fri May 31, 2019 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Forgot to mail check to IRS for taxes ($4000) - what now
Replies: 24
Views: 2782

Re: Forgot to mail check to IRS for taxes ($4000) - what now

I’m a very small sample size but I would probably wait just a little bit longer. I know this is not the majority view, but the one time I tried to be proactive with the IRS it was a mess. Do the expected thing and wait until you get a letter and then follow it exactly. The IRS seems set up to antici...
by lkar
Thu May 30, 2019 10:02 pm
Forum: Personal Investments
Topic: MegaBackDoorRoth vs Pre-tax Contributions
Replies: 5
Views: 886

Re: MegaBackDoorRoth vs Pre-tax Contributions

199A doesn’t really change the nature of the Roth v. Traditional inquiry. It is still comparing tax now versus guesses about tax later, as you note. The only thing that is different is that QBID is giving you a slightly better tax rate now for Roth. I am at the 24 percent bracket and am doing some c...
by lkar
Thu May 30, 2019 2:41 pm
Forum: Personal Investments
Topic: What do active managers do differently?
Replies: 17
Views: 1030

Re: What do active managers do differently?

Ok, third post in a row for me. Reading back on those last two posts I wish I really had never weighed in here. It is not my intention to become the manager defender. I was just ruminating about my experience. There is no "therefore" there. I'm not advocating it. I was trying to add a little more co...
by lkar
Thu May 30, 2019 2:33 pm
Forum: Personal Investments
Topic: What do active managers do differently?
Replies: 17
Views: 1030

Re: What do active managers do differently?

The allocation between international bonds and all-US fluctuated on a nearly weekly basis. The other major tinkering was going back and forth between total market international stock and more small cap focused stock, though this was all done in a very narrow portion of the overall allocation, rarel...
by lkar
Thu May 30, 2019 2:25 pm
Forum: Personal Investments
Topic: What do active managers do differently?
Replies: 17
Views: 1030

Re: What do active managers do differently?

Ikar, Have you played with a tool like this to see the effect of "just 1.25%" over 30 or 40 years? https://www.dinkytown.net/java/compare-investment-fees.html Use .1%, .75% and 1.25% as the fees. Use your actual numbers and some reasonable return number. Our cost at Vanguard all up is .06%. The dif...
by lkar
Thu May 30, 2019 1:27 pm
Forum: Personal Investments
Topic: What do active managers do differently?
Replies: 17
Views: 1030

Re: What do active managers do differently?

I've posted elsewhere about moving an inherited managed account to a self directed three fund concept. In the last couple of weeks since I made that decision I've been reading boglehead philosophy and trying to work backwards to see if I could understand what actually was happening in that account, ...
by lkar
Thu May 30, 2019 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2304

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

I came here to solicit ideas to present to an estate lawyer so that they can craft a trust that meets my requirements. As a lawyer, but not a T&E lawyer, my opinion is you're doing this in the wrong order. You should find a qualified T&E lawyer who has walked this path many times to tell you where ...
by lkar
Thu May 30, 2019 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2304

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

OP: I think your goals are noble and correct. I try to ignore the "controlling from beyond the grave" talk. I think I used this term and it wasn’t pejorative. It was meant to be merely descriptive. This is a very common impulse. It is why trusts and estates lawyers, good ones at least, make a good ...
by lkar
Wed May 29, 2019 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2304

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

bayview wrote:
Wed May 29, 2019 9:34 pm
^^ I think OP wrote that he is gathering info and ideas in order to be prepared to meet with an attorney.
Ahh, sorry. Yes great idea then! Might be more valuable to discuss with the lawyer and then come here to Bogleheads the various options instead of the other way.
by lkar
Wed May 29, 2019 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Preparing for age 55 year. Spouse HSA Question.
Replies: 5
Views: 579

Re: HSA Preparing for age 55 year. Spouse HSA Question.

Ok, thanks. I think I understand it all. His and hers HSAs ok. Total contribution combined must be $7k or less and can be split however she and I agree. When she turns 55 and thereafter we can make a catch up for her of $1,000 in her account. When I turn 55 I can start making my $1,000 catch up to ...
by lkar
Wed May 29, 2019 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2304

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

If your estate is significant, you need an estate planning lawyer. There are too many trap doors and you need to sit across the table from a pro so you can lay out exactly what you want. It is easy to make a mistake when you’re trying to do stuff like this that makes a covenant unenforceable or has ...
by lkar
Wed May 29, 2019 9:54 am
Forum: Personal Investments
Topic: Backdoor Roth
Replies: 16
Views: 1204

Re: Backdoor Roth

If you attempt to contribute $6k to an IRA and then convert it to Roth, and you maintain the traditional and SEP IRAs, your Roth conversion will result in recognition of about $5k in income that will be subject to taxation. You won’t be able to figure out the exact amount until you know the values o...
by lkar
Wed May 29, 2019 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Extra Payments on Monthly Mortgage Considerations
Replies: 37
Views: 3593

Re: Extra Payments on Monthly Mortgage Considerations

I think the mortgage interest deduction is worth thinking about. Usually it is negligible in these extra payment scenarios but at $500/month $6,000 a year it could start to have a bit of an impact for a taxpayer in a high bracket who itemizes. It should be a fairly straightforward math exercise to s...
by lkar
Tue May 28, 2019 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Any benefits to low salary job with high income spouse?
Replies: 32
Views: 6919

Re: Any benefits to low salary job with high income spouse?

We are in your same situation. My wife has a small business with fairly low yearly profits — usually a couple thousand. As the small bits of income come in, we make guesses about expenses and contribute to her solo 401k making sure to be a little on the low side. We have a CPA who does our taxes an...
by lkar
Tue May 28, 2019 3:49 pm
Forum: Personal Investments
Topic: Best way to backdoor Roth IRA
Replies: 37
Views: 2941

Re: Best way to backdoor Roth IRA

There was clear legislative intent when the Roth conversion income limit was removed beginning in 2010, and the Roth contribution income limit was retained. Congress actively discussed, relied on and continues to rely on to this day the revenue generated by the Roth conversion pro-rata taxation of ...
by lkar
Tue May 28, 2019 1:59 pm
Forum: Investing - Theory, News & General
Topic: "A Set-It-and-Forget-It Target-Date Series From Vanguard"
Replies: 120
Views: 13794

Re: "A Set-It-and-Forget-It Target-Date Series From Vanguard"

One thing that I kind of wonder about with some of these target date funds is whether they will tend toward slightly higher stock allocation over time for marketing reasons. There is definitely some variance in the market. I have a 2035 TD fund and now that I'm learning about AA a little more I've b...
by lkar
Mon May 27, 2019 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Preparing for age 55 year. Spouse HSA Question.
Replies: 5
Views: 579

Re: HSA Preparing for age 55 year. Spouse HSA Question.

Ok, thanks. I think I understand it all. His and hers HSAs ok. Total contribution combined must be $7k or less and can be split however she and I agree. When she turns 55 and thereafter we can make a catch up for her of $1,000 in her account. When I turn 55 I can start making my $1,000 catch up to m...
by lkar
Mon May 27, 2019 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Any benefits to low salary job with high income spouse?
Replies: 32
Views: 6919

Re: Any benefits to low salary job with high income spouse?

I wanted to give a little update on this situation because it brought up a few more questions. First off, thank you everyone on this thread for the advice! My wife was given her offer letter and was offered $10,000 payment for her work. Assuming that will be all she gets that year, I would like to ...
by lkar
Mon May 27, 2019 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Preparing for age 55 year. Spouse HSA Question.
Replies: 5
Views: 579

HSA Preparing for age 55 year. Spouse HSA Question.

I work and have a family HD health insurance plan that covers my spouse. She does not work. I generally contribute the max to the Optum plan that my work encourages us to use. It is in my name only. One account. She is 53 and I am 51 so she will be eligible for catch up before me. I receive no emplo...
by lkar
Mon May 27, 2019 12:35 am
Forum: Personal Consumer Issues
Topic: Name something you had to have and now you regret purchasing it?
Replies: 505
Views: 65212

Re: Name something you had to have and now you regret purchasing it?

I have bought two timeshares in my life. One was a DVC unit at Bay Lake Tower when if first went on sale well before it opened. Got a crazy good price and a ton of developer points that we rented out to recapture our costs. When the resort opened, we used it three times, used our points at Grand Cal...
by lkar
Sun May 26, 2019 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3900
Views: 723173

Re: What's Your Credit Card Rewards Strategy?

The “pretty good value” redemption has all but disappeared — most airlines have moved to dynamic pricing. Believe me, I’ve looked many many times but that mythical expensive economy ticket cheap points ticket is a frequently touted yet rarely if ever feasible option. Almost as mythic as that 80k $1...
by lkar
Sun May 26, 2019 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3900
Views: 723173

Re: What's Your Credit Card Rewards Strategy?

TPG’s point valuations are a joke IMO. Have you actually attempted to redeem your points? You will realistically get two ranges of redemptions: $0.005-$0.015 or $0.03-$0.10 and beyond. Notice how you’ll rarely get a $0.02/pt redemption. Why is that? Because you can really only redeem your points in...
by lkar
Sun May 26, 2019 4:05 pm
Forum: Personal Investments
Topic: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction
Replies: 24
Views: 1187

Re: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction

It's 100% deductible, but your QBI deduction will decrease by 20% of your 401k contribution, making your marginal tax saving (1 - 20%) = 80% of the nominal marginal rate for your situation. That's why the QBI deduction will increase the likelihood that Roth is favorable, but you still have to compa...
by lkar
Sun May 26, 2019 1:58 pm
Forum: Personal Investments
Topic: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction
Replies: 24
Views: 1187

Re: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction

Sorry to repeat my question; Maybe i am missing something but if i am a small business owner i can invest thru solo401k as tax deductible where there is no income phase out. So why bother with roth ira in this situation? So that you don’t have to pay taxes when you withdraw the money. Same reason a...
by lkar
Sun May 26, 2019 1:12 pm
Forum: Investing - Theory, News & General
Topic: "A Set-It-and-Forget-It Target-Date Series From Vanguard"
Replies: 120
Views: 13794

Re: "A Set-It-and-Forget-It Target-Date Series From Vanguard"

A very very basic question please. Is there an easy way to find a TD’s glide path? I find it actually quite difficult on line but it might just be that I’m not looking in the right places. My typical strategy is to look at the same family of funds in five year increments closer and closer to today’s...
by lkar
Sun May 26, 2019 12:12 pm
Forum: Personal Investments
Topic: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction
Replies: 24
Views: 1187

Re: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction

Sorry to repeat my question; Maybe i am missing something but if i am a small business owner i can invest thru solo401k as tax deductible where there is no income phase out. So why bother with roth ira in this situation? So that you don’t have to pay taxes when you withdraw the money. Same reason a...
by lkar
Sun May 26, 2019 9:51 am
Forum: Personal Investments
Topic: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction
Replies: 24
Views: 1187

Re: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction

It's 100% deductible, but your QBI deduction will decrease by 20% of your 401k contribution, making your marginal tax saving (1 - 20%) = 80% of the nominal marginal rate for your situation. That's why the QBI deduction will increase the likelihood that Roth is favorable, but you still have to compa...
by lkar
Sat May 25, 2019 11:04 pm
Forum: Personal Investments
Topic: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction
Replies: 24
Views: 1187

Re: Calculating Traditional vs Roth Solo 401k Contributions With QBI Deduction

Start by looking at it from the federal side. If you are entitled to take a 199A deduction and your taxable income is below the phase out such that you can take the deduction, then the easiest way to think about it is that your pre-tax contibutions to your 401k are essentially being taxed twice. Fir...
by lkar
Sat May 25, 2019 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Do Inherited IRA RMDs Change Asset Allocation Plan?
Replies: 9
Views: 806

Re: Do Inherited IRA RMDs Change Asset Allocation Plan?

Lots of good advice in here. Thank you. The prospect of splitting up asset classes across accounts is a little bit daunting and I would kind of like to just do target funds. But I am going to do some more reading and this is a very good start. Do look into splitting up asset classes across accounts...
by lkar
Sat May 25, 2019 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Do Inherited IRA RMDs Change Asset Allocation Plan?
Replies: 9
Views: 806

Re: Do Inherited IRA RMDs Change Asset Allocation Plan?

Lots of good advice in here. Thank you.

The prospect of splitting up asset classes across accounts is a little bit daunting and I would kind of like to just do target funds. But I am going to do some more reading and this is a very good start.
by lkar
Fri May 24, 2019 4:40 pm
Forum: Personal Investments
Topic: Best Solo 401k Brokerage for Three Fund Portfolio
Replies: 40
Views: 2749

Re: Best Solo 401k Brokerage for Three Fund Portfolio

Wow, that is complicated. The question that immediately comes to mind is: what is the limit for after tax contributions to a solo 401k?! My understanding is that the only limit on the amount that you can contribute in after tax dollars to a solo 401k is the overall "415" limit for all qualified pla...
by lkar
Fri May 24, 2019 4:22 pm
Forum: Personal Investments
Topic: When to redeem EE savings bonds
Replies: 4
Views: 426

Re: When to redeem EE savings bonds

If there's any chance of your MAGI going up significantly in future years and if you would have use for 529, you would want to redeem them while your MAGI is under the phase out for rolling savings bonds into a 529 account. Otherwise, I think EE savings bonds issued when those were issued -- around ...
by lkar
Fri May 24, 2019 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Do Inherited IRA RMDs Change Asset Allocation Plan?
Replies: 9
Views: 806

Do Inherited IRA RMDs Change Asset Allocation Plan?

So, I think this is mostly a math problem. I've looked at it from a few different angles and my conclusion is that it's not really worth worrying about but I found this forum a short while ago and I figure if I'm overlooking something, I'll get good answers here. The basic question is whether the ex...
by lkar
Fri May 24, 2019 1:52 pm
Forum: Personal Investments
Topic: Best Solo 401k Brokerage for Three Fund Portfolio
Replies: 40
Views: 2749

Re: Best Solo 401k Brokerage for Three Fund Portfolio

Thank you for this too. There is one thing which I don't understand in the terminology: "After-tax 401k". Is this not the same as a Roth 401k? It has gotten complicated. It is possible to make contributions to 401k plans with after tax dollars that are not Roth contributions. This is not an option ...
by lkar
Fri May 24, 2019 12:44 pm
Forum: Personal Investments
Topic: Best Solo 401k Brokerage for Three Fund Portfolio
Replies: 40
Views: 2749

Re: Best Solo 401k Brokerage for Three Fund Portfolio

My understanding is the new 199a qbi deduction is a reason Roth May make sense Vs traditional 401k contribution. Depends on the details of course and various aspects of an Individual scenario to assess. Yep. This was the case for us and the reason we ended up amending our ETrade solo 401k to includ...
by lkar
Thu May 23, 2019 5:14 pm
Forum: Personal Investments
Topic: Best Solo 401k Brokerage for Three Fund Portfolio
Replies: 40
Views: 2749

Re: Best Solo 401k Brokerage for Three Fund Portfolio

Thank you. Looked through all and seems like E-Trade will be closest to what I need. But on the Roth contributions: I'm not sure how these are useful in my case. Both Roth and normal solo 401k contributions count towards the overall $56,000 limit is that right? If you have a high income now and exp...
by lkar
Thu May 23, 2019 10:59 am
Forum: Investing - Theory, News & General
Topic: "A Set-It-and-Forget-It Target-Date Series From Vanguard"
Replies: 120
Views: 13794

Re: "A Set-It-and-Forget-It Target-Date Series From Vanguard"

Some of the snark and back and forth is a bit distracting to what's really a good discussion here for those of us trying to get a handle on the issues. Well, of course, TD funds are way better than a bunch of dubious alternatives. As longinvest rightfully perceived , I was making a relative comparis...
by lkar
Wed May 22, 2019 12:10 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2617
Views: 201353

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

I don't need to know exactly when the crash will be over, because I don't think anyone can deny the benefit of waiting for a lower price and buying somewhere around the bottom of the market crash rather than buying now (I am guessing that the next crash is starting in 1-2 years, since it's been a l...