Search found 27 matches

by LivingTheDream
Mon Nov 30, 2020 5:36 pm
Forum: Investing - Theory, News & General
Topic: Roth conversions... tax speculation?
Replies: 28
Views: 1673

Re: Roth conversions... tax speculation?

MathWizard wrote: Mon Nov 30, 2020 4:08 pm
I'm impressed that you were able to get so much in after-tax.

I'm only about 30% after tax.

I assume that given the large difference in contribution limits , that much of your after tax is in taxable.
I meant taxable (I struggle with after-tax vs taxable)
by LivingTheDream
Mon Nov 30, 2020 9:33 am
Forum: Investing - Theory, News & General
Topic: Roth conversions... tax speculation?
Replies: 28
Views: 1673

Re: Roth conversions... tax speculation?

Many bogleheads do conversions to avoid a tax bomb when RMD's kick in. I did a Roth conversion this year. My intent was to get the regular IRA amount to where the first couple of years of RMD's would be about what I would need to supplement my SS anyway. So roughly 4% of my regular IRA is what I ne...
by LivingTheDream
Mon Nov 30, 2020 9:28 am
Forum: Investing - Theory, News & General
Topic: Roth conversions... tax speculation?
Replies: 28
Views: 1673

Re: Roth conversions... tax speculation?

No one knows what the future holds, and that is especially true for anything related to taxes. So yes any planning and actions you may take involves a little bit or maybe a lot of speculation. But you can have paralysis by analysis or else you would never make any decisions. Nate79, Good point abou...
by LivingTheDream
Mon Nov 30, 2020 9:26 am
Forum: Investing - Theory, News & General
Topic: Roth conversions... tax speculation?
Replies: 28
Views: 1673

Re: Roth conversions... tax speculation?

The only tax change you can plan on within the rules for discussion on this board is the increase from 12% to 15% , 22% to 25% etc in 2026 that are part of the current tax code. I think that the rules are quite reasonable. Most people will have the bulk of their tax advantaged in tax deferred. That...
by LivingTheDream
Mon Nov 30, 2020 9:21 am
Forum: Investing - Theory, News & General
Topic: Roth conversions... tax speculation?
Replies: 28
Views: 1673

Re: Roth conversions... tax speculation?

I've been trying to get my head around Roth conversions, and understand the rationale. But I am having a hard time with the concept of tax speculation. While taxes are certain, tax rates & rules are not. The general consensus that market timing is bad seems to be in conflict (at least to me) wi...
by LivingTheDream
Mon Nov 30, 2020 9:11 am
Forum: Investing - Theory, News & General
Topic: Roth conversions... tax speculation?
Replies: 28
Views: 1673

Re: Roth conversions... tax speculation?

A few words about tax speculation - discussions about future legislation is prohibited by forum policy, see: Unacceptable Topics Politics and Religion In order to avoid the inevitable frictions that arise from these topics, political or religious posts and comments are prohibited. The only exceptio...
by LivingTheDream
Sun Nov 29, 2020 9:51 am
Forum: Investing - Theory, News & General
Topic: Roth conversions... tax speculation?
Replies: 28
Views: 1673

Roth conversions... tax speculation?

I've been trying to get my head around Roth conversions, and understand the rationale. But I am having a hard time with the concept of tax speculation. While taxes are certain, tax rates & rules are not. The general consensus that market timing is bad seems to be in conflict (at least to me) wit...
by LivingTheDream
Fri Nov 13, 2020 3:34 pm
Forum: Investing - Theory, News & General
Topic: How on earth can overweighting US stock over international stock possibly be considered Boglehead?
Replies: 253
Views: 15810

Re: How on earth can overweighting US stock over international stock possibly be considered Boglehead?

I am curious, has one person's opinion changed in this thread since its posting? Most of these threads in the best of light, get locked after 20 pages of quoting Jack Bogle and Buffet, and in the worst of light, after severe name calling and rudeness to other members. :oops: While I get annoyed wit...
by LivingTheDream
Tue Nov 10, 2020 12:31 am
Forum: Investing - Theory, News & General
Topic: Will I really need 80% replacement during retirement?
Replies: 118
Views: 10722

Re: Will I really need 80% replacement during retirement?

With these two strategies have you considered what taxes will be at 70 , 75 and beyond? "A little growth heavy but I was ok with that & was only way to keep yields low." "7 years (new RMD age of 72)" In your monitoring have you considered using calculators to review these po...
by LivingTheDream
Mon Nov 09, 2020 8:38 pm
Forum: Investing - Theory, News & General
Topic: How on earth can overweighting US stock over international stock possibly be considered Boglehead?
Replies: 253
Views: 15810

Re: How on earth can overweighting US stock over international stock possibly be considered Boglehead?

absolute zero wrote: Mon Nov 09, 2020 8:37 pm I'm becoming increasingly convinced that these international vs US-only threads must make Bogleheads look like the goofiest forum on the internet.
+1
by LivingTheDream
Sun Nov 08, 2020 11:49 am
Forum: Investing - Theory, News & General
Topic: How on earth can overweighting US stock over international stock possibly be considered Boglehead?
Replies: 253
Views: 15810

Re: How on earth can overweighting US stock over international stock possibly be considered Boglehead?

It's funny you should mention Apple, because I have a friend who invested hugely into Apple a couple of years ago, and it's impossible to say, "Hey, you know that strategy that's worked out so well for you? You should ditch it in favor of the strategy that hasn't done as well!" That's wha...
by LivingTheDream
Mon Nov 02, 2020 9:09 pm
Forum: Investing - Theory, News & General
Topic: How on earth can overweighting US stock over international stock possibly be considered Boglehead?
Replies: 253
Views: 15810

Re: How on earth can overweighting US stock over international stock possibly be considered Boglehead?

It goes against the principles of Bogleheads. How on earth can anything but market cap weighting of total world taking I believe somewhat close to 50-50 US and International (although it may now have diverged a bit from 50-50) be considered Boglehead. It literally makes no sense. And yet here I fre...
by LivingTheDream
Mon Nov 02, 2020 8:58 pm
Forum: Investing - Theory, News & General
Topic: If retired, what's your allocation to fixed income?
Replies: 107
Views: 10207

Re: If retired, what's your allocation to fixed income?

OP, I am 60/40. That translates into 10 years of expense in FI. I have another 2 years of expense in CASH as the emergency fund. It is not part of the AA. The retiree's AA should include 10 to 20 years of expense in FI. KlangFool +1 I'm closer to 65/35, but use the same rationale (10 years of expen...
by LivingTheDream
Mon Nov 02, 2020 8:50 pm
Forum: Investing - Theory, News & General
Topic: How on earth can overweighting US stock over international stock possibly be considered Boglehead?
Replies: 253
Views: 15810

Re: How on earth can overweighting US stock over international stock possibly be considered Boglehead?

It goes against the principles of Bogleheads. How on earth can anything but market cap weighting of total world taking I believe somewhat close to 50-50 US and International (although it may now have diverged a bit from 50-50) be considered Boglehead. It literally makes no sense. And yet here I fre...
by LivingTheDream
Thu Oct 29, 2020 7:14 pm
Forum: Investing - Theory, News & General
Topic: Will I really need 80% replacement during retirement?
Replies: 118
Views: 10722

Re: Will I really need 80% replacement during retirement?

"The trick to retiring early and making smart use of the ACA is to have substantial savings outside of tax deferred accounts, which I am sure you know but it’s worth mentioning." With substantial savings outside of tax deferred accounts utilizing the ACA moves from a challenge to impossib...
by LivingTheDream
Thu Oct 29, 2020 6:21 pm
Forum: Investing - Theory, News & General
Topic: Will I really need 80% replacement during retirement?
Replies: 118
Views: 10722

Re: Will I really need 80% replacement during retirement?

"The trick to retiring early and making smart use of the ACA is to have substantial savings outside of tax deferred accounts, which I am sure you know but it’s worth mentioning." With substantial savings outside of tax deferred accounts utilizing the ACA moves from a challenge to impossib...
by LivingTheDream
Thu Oct 29, 2020 5:40 pm
Forum: Investing - Theory, News & General
Topic: Will I really need 80% replacement during retirement?
Replies: 118
Views: 10722

Re: Will I really need 80% replacement during retirement?

"The trick to retiring early and making smart use of the ACA is to have substantial savings outside of tax deferred accounts, which I am sure you know but it’s worth mentioning." With substantial savings outside of tax deferred accounts utilizing the ACA moves from a challenge to impossib...
by LivingTheDream
Mon Oct 26, 2020 1:21 pm
Forum: Investing - Theory, News & General
Topic: Will I really need 80% replacement during retirement?
Replies: 118
Views: 10722

Re: Will I really need 80% replacement during retirement?

For an average American with a low/middle income, with a relatively low tax burden, and who spends most of what they make, 80% of salary might be a reasonable number. For an average Boglehead with a middle/high income, relatively high tax burden, is smart with investments, and who saves a large fra...
by LivingTheDream
Fri Oct 23, 2020 5:01 pm
Forum: Personal Investments
Topic: How do you estimate retirement expenses?
Replies: 67
Views: 4737

Re: How do you estimate retirement expenses?

Thanks for all the great insight! I’m in my low 40’s and would like to do a “soft” retirement when our child leaves for college in just over a decade. Some things will need to shake out correctly during that time span to make it feasible so doing everything I can to turn it in to reality. That was ...
by LivingTheDream
Mon Oct 19, 2020 5:11 pm
Forum: Investing - Theory, News & General
Topic: [Managing a portfolio for 50 years without adding new money]
Replies: 18
Views: 1794

Re: [Managing a portfolio for 50 years without adding new money]

KlangFool,

All good points, thanks for the clarification and details.
by LivingTheDream
Mon Oct 19, 2020 4:44 pm
Forum: Investing - Theory, News & General
Topic: [Managing a portfolio for 50 years without adding new money]
Replies: 18
Views: 1794

Re: Creating the portfolio for 50 years of happiness

OP, A) AA of 60/40. Put all the money into the Vanguard Life Strategy Moderate Growth Fund (VSMGX). B) Portfolio size of 50 X 75K = 3.75 million. KlangFool KlangFool, Why 50x? Are you just being easy/conservative, or do you really think VSMGX is going to only keep pace with inflation? (my question ...
by LivingTheDream
Sun Oct 18, 2020 5:12 pm
Forum: Personal Investments
Topic: Bond Portion of Portfolio
Replies: 2
Views: 470

Bond Portion of Portfolio

I think (hope) my question is a simple one... Within the bond portion of my portfolio, are there any advantages to holding BOTH short-term & intermediate-term bond funds? I know there are other threads that are closely related, but I think they deal more specifically with simplicity rather than ...
by LivingTheDream
Sun Oct 18, 2020 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: 2nd house, for Univ. kids/students
Replies: 85
Views: 6512

Re: 2nd house, for Univ. kids/students

OP, Not sure if you were asking for opinions about whether or not to travel this path, or were simply asking for opinions on potential considerations. Several posts have advised against going this route at all. I'll offer (in addition to my earlier post on things to consider) my opinions on whether ...
by LivingTheDream
Sun Oct 18, 2020 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: 2nd house, for Univ. kids/students
Replies: 85
Views: 6512

Re: 2nd house, for Univ. kids/students

I can guarantee you these 4 kids would not be the same ones at the end of the 3 years. Have two kids in college right now and none of their room mates made it more then one year. be prepared for midnight move outs with a gap in rent and or a new room mate mysteriously showing up, not to mention gir...
by LivingTheDream
Sun Oct 18, 2020 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: 2nd house, for Univ. kids/students
Replies: 85
Views: 6512

Re: 2nd house, for Univ. kids/students

OP here. Templates for leasing - where do I find them? It's been a few years, but I think I used RocketLawyer.com for the sample/template, but customized significantly (based on personal preferences & points of emphasis). And I would recommend using state-specific template (based on location of...
by LivingTheDream
Sun Oct 18, 2020 11:02 am
Forum: Personal Finance (Not Investing)
Topic: 2nd house, for Univ. kids/students
Replies: 85
Views: 6512

Re: 2nd house, for Univ. kids/students

I'm going to make an assumption... by stating that your timeframe is 3 years or so, I assume your child (or close relative) will be staying in the house during their college years. I did the exact same thing & it worked out great (for my intended purposes... providing good, affordable housing fo...