Search found 156 matches

by JDSwim3
Sun Mar 17, 2024 8:03 am
Forum: Personal Investments
Topic: Where to keep emergency funds?
Replies: 23
Views: 2477

Re: Where to keep emergency funds?

I had all EF in a HYSA, then bought I-Bonds with a portion when their rates went bonkers with the variable piece, knowing I had enough still in the HYSA to ride out the 12 month freeze.
by JDSwim3
Sat Feb 10, 2024 8:24 am
Forum: Personal Investments
Topic: Help with Firecalc "Your Portfolio" Tab Entries
Replies: 5
Views: 652

Help with Firecalc "Your Portfolio" Tab Entries

Not sure what to enter on the Your Portfolio tab in Firecalc.

Our portfolio:
I-Bonds = 2.5%
Intermediate Aggregate Bond Fund = 29%
TIPS Fund = 6.5%
Total US Market Fund = 48.5%
Total Int'l Market Fund = 13.5%

If I use the Total Market section, which selection do I make in the FI sub-section given our portfolio?

If I use the Mixed Portfolio section, what are the applicable percentages for the 8 variables given our portfolio?

Or can I just leave the tab blank since our portfolio is somewhat close to the default "couch potato" 75/25?

Thanks!
by JDSwim3
Sun Feb 04, 2024 10:12 am
Forum: Personal Investments
Topic: Should We Change our AA?
Replies: 2
Views: 584

Should We Change our AA?

Retired with a stated and current 60/40 AA in a 3 fund portfolio. Schwab's Intermediate Bond Fund (SWAGX) makes up 28% of our total portfolio, or 70% of our 40% FI allocation. SWAGX is held in only our TIRAs.

A recently approved disability claim has resulted in additional recurring fixed income equating to just under 20% of our monthly budget. This was not anticipated and therefore not factored when we established our 60/40 AA.

So, between work pension, disability, and DW's social security, FI covers 65% of our monthly budget. When I take SS at FRA in a few years, FI will cover upwards of 80% of our budget.

Question - when SWAGX NAV eventually recovers, should we sell down and change our AA to something like 75/25?

Thank you.
by JDSwim3
Wed Jan 31, 2024 5:23 pm
Forum: Personal Investments
Topic: Where to park RMD?
Replies: 21
Views: 3133

Re: Where to park RMD?

We're Roth converting total stock fund for a couple more years to tilt to bond fund in our TIRAs, thereby slowing growth in an effort to match RMD and our annual budget.

Using our SWR, we'll probably still have some minor RMD above our budget needs for a few years. My home-grown longevity model says any extra is essentially a bonus, so we'll add it to our vacation budget in those years. Depending on growth, it will either be Motel 6 or the Waldorf. :happy
by JDSwim3
Tue Jan 23, 2024 8:15 am
Forum: Personal Investments
Topic: Bond Fund Question
Replies: 11
Views: 1311

Re: Bond Fund Question

I meant value recovery, not cost basis.
by JDSwim3
Tue Jan 23, 2024 8:13 am
Forum: Personal Investments
Topic: Bond Fund Question
Replies: 11
Views: 1311

Re: Bond Fund Question

bonesly wrote: Mon Jan 22, 2024 9:10 pm If you look at the Portfolio Composition section, and the notes under maturity/duration, for Vanguard Total Bond ETF (BND), you'll see the following.
When I retired in 2020, I ignorantly put the 40% of our AA in Schwab’s intermediate bond fund (SWAGX), and have watched its NAV nosedive since based on interest rates.

Question - if I don’t draw from the bond fund for several years, can I expect (hope?) my cost basis will recover over time?
by JDSwim3
Tue Jan 16, 2024 9:24 am
Forum: Personal Investments
Topic: Simplifying My Portfolio
Replies: 8
Views: 1152

Re: Simplifying My Portfolio

My dear spouse has zero interest in managing (ie. rebalancing as needed) even the simplest of 3 Fund portfolios in the case of my demise.

I have an instruction to her to transfer all of our assets to VSMGX when I kick the bucket, which replicates our 60/40 AA, albeit with a slightly higher ER.
by JDSwim3
Tue Dec 26, 2023 6:41 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1239839

Re: I Bonds Before Dec. 31?

Chip Munk wrote: Mon Dec 25, 2023 10:39 pm
If I deliver gifts to another TreasuryDirect customer, how does it affect the recipient's purchase limitation?
If you deliver gifts to another customer, the amount of the delivery is applied toward the annual purchase limitation for each security type for the year the gift delivery occurs.


You could purchase them as gifts for each other this month and then deliver them in January.
So it IS the delivery month that is critical. Thank you Chip Munk. Will probably just wait until January 1 and do straight purchases.
by JDSwim3
Mon Dec 25, 2023 7:01 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1239839

I Bonds Before Dec. 31?

[Thread merged into here --admin LadyGeek]

If I anticipate just one more purchase of two I Bonds (DW and I), does it matter if I complete the purchase prior to year end, or just complete the buy in January?
by JDSwim3
Sun Dec 24, 2023 10:11 am
Forum: Personal Investments
Topic: 12 Month Gifted I-Bond Date - Issue or Delivery?
Replies: 1
Views: 330

12 Month Gifted I-Bond Date - Issue or Delivery?

Bought two gift I-Bonds in Oct 22, delivered them in Jan 23. Had already purchased the max for 22 so had to wait to deliver.

Has the 12 month clock run already for these gifts (issue date) or is it the date in January (delivery date)?

Considering cashing out and moving to higher earning CDs, but need to assure the 12 months has run.

Thanks!
by JDSwim3
Tue Nov 21, 2023 11:47 am
Forum: Personal Investments
Topic: Sell Bond Fund for Roth Conversion Tax?
Replies: 6
Views: 412

Re: TLH Bond Fund for Roth Conversion Tax?

Hyperchicken wrote: Tue Nov 21, 2023 11:39 am TLH means selling and then buying something similar but not substantially identical. You may want to rename this thread to "Sell Bond Fund for Roth Conversion Tax?" to attract more focused replies.
Gotcha. I use TLH in a generic sense as any opportunity to sell a loser and offset year-end tax due. A loss is a loss. I'll change the subject line when I figure out how.
by JDSwim3
Tue Nov 21, 2023 11:36 am
Forum: Personal Investments
Topic: Sell Bond Fund for Roth Conversion Tax?
Replies: 6
Views: 412

Re: TLH Bond Fund for Roth Conversion Tax?

Hyperchicken wrote: Tue Nov 21, 2023 11:32 am Your post is confusing, and I struggle to understand how its parts fit together.

If you have unrealized losses, you can do tax loss harvesting. That is unrelated to Roth conversion.
I'm selling positions to use for the Roth conversion tax due. The question is whether I should sell bond fund positions, taking the NAV beating but using it for TLH, or leaving the bond fund positions alone for now.
by JDSwim3
Tue Nov 21, 2023 11:25 am
Forum: Personal Investments
Topic: Sell Bond Fund for Roth Conversion Tax?
Replies: 6
Views: 412

Sell Bond Fund for Roth Conversion Tax?

Planning a relatively large Roth conversion in mid-December to at least the top of 22% but probably somewhere in 24% bracket.

Ignorantly, I put a good chunk of our taxable account into an intermediate bond fund (SWAGX) in 2020, and have watched the NAV nosedive since. I use this account for conversion tax. Selling other holdings will limit my conversion amount.

Question - should I take a loss and sell the bond fund this year to pay some of the tax, or should I sell winners and let the bond fund ride out some of its low-yield storm as replacements are made?
by JDSwim3
Sun Sep 17, 2023 5:10 pm
Forum: Personal Investments
Topic: Should We Make More Roth Conversions?
Replies: 24
Views: 2482

Re: Should We Make More Roth Conversions?

Summarized well by FiveK above your uses for the funds are a consideration since your draw seems very low from what you posted. Don't anticipate QCDs unless ROI goes through the roof. Our seemingly low draw is based on a reasonably comfortable budget developed from several years of tracking every expenditure across many categories (maybe just this side of obsessively tracking). That tracking enabled establishment of our retirement budget and allowed me to retire fairly early, which is working so far 3 years in. I built an Excel portfolio longevity model with key variable inputs [ROI, inflation, SS start, husband kick the bucket year (SS reduction, pension reduction, and single filer tax implications for her)] to validate and tweak the annu...
by JDSwim3
Sun Sep 17, 2023 2:44 pm
Forum: Personal Investments
Topic: Should We Make More Roth Conversions?
Replies: 24
Views: 2482

Re: Should We Make More Roth Conversions?

cas wrote: Sun Sep 17, 2023 1:36 pm
I'm not seeing that you mention how you are getting health insurance prior to Medicare at age 65. (And I also looked back at your previous posts, and people asked about ACA participation, but I didn't see an answer.)
I should have mentioned in my background data that my retirement includes pretty solid medical coverage with minimal premiums and co-pays until Medicare age. So ACA is a non-factor.
by JDSwim3
Sun Sep 17, 2023 9:23 am
Forum: Personal Investments
Topic: Should We Make More Roth Conversions?
Replies: 24
Views: 2482

Should We Make More Roth Conversions?

Background Data : Retired Both age 61 (RMDs start at 72) Including Pension and SS (her at 62, me at FRA), living expense withdrawal from tIRA will average 2.5% through RMD start (assumed 5% annual ROI, 3% historic annual inflation going forward) Balance in tIRA - $1.57M (note - Roth balance is $355K all in SWTSX) o SWAGX - $588K o SWTSX - $477K o SWISX - $271K o VTSAX - $92K o SCHP - $139K EF / Market Slump Hedge (HYSA and I-Bonds) - $118K Cash for additional prospective conversions in taxable brokerage - $110K If ROI ticks up to even 7%, we would almost certainly find ourselves in a higher tax bracket come RMD time, which classically would say to make further conversions to slow tIRA growth. Just want to make sure I'm accounting for all t...
by JDSwim3
Mon Mar 13, 2023 8:10 am
Forum: Personal Investments
Topic: 3 Fund (Bond Fund) at Wrong Time
Replies: 10
Views: 1118

Re: 3 Fund (Bond Fund) at Wrong Time

Ha! My part time gig is at a golf course, allowing me to play for free, which effectively helps control our (my) spending.

SORR has definitely been on my mind, so we have established a budget that has cut-back from our initial thoughts.

I think I can ride out the SWAGX timeline, but just hate seeing the unrealized loss each month when I calculate our withdrawal.

My initial post was just to see if there is anything I could or should do other than ride it out.

Thank you for the clear reply.
by JDSwim3
Mon Mar 13, 2023 6:53 am
Forum: Personal Investments
Topic: 3 Fund (Bond Fund) at Wrong Time
Replies: 10
Views: 1118

Re: 3 Fund (Bond Fund) at Wrong Time

KlangFool wrote: Mon Mar 13, 2023 6:42 am OP,

Cash is not trash. How much cash are you keeping? How many months of expenses is in cash?
I keep 2 years of expenses in cash. I "Sleep Well At Night" (SWAN) through period like this.

KlangFool
I took your advice at the outset, and put about 3 years of expenses in a HYSA, and last year moved 1 year of it to I-Bonds, including the 2023 gifts. I have drawn on that a few times, and yes, it has helped me sleep a little better. I just don’t have an income stream to replenish it, hoping to see some equity gains relatively soon to use that to replenish.
by JDSwim3
Mon Mar 13, 2023 6:46 am
Forum: Personal Investments
Topic: 3 Fund (Bond Fund) at Wrong Time
Replies: 10
Views: 1118

Re: 3 Fund (Bond Fund) at Wrong Time

exodusNH wrote: Mon Mar 13, 2023 6:41 am
When will you need the money?
[/quote]

Assuming a hopefully-modest net 2% ROI on the equity side, not for at least 10 years.
by JDSwim3
Mon Mar 13, 2023 6:35 am
Forum: Personal Investments
Topic: 3 Fund (Bond Fund) at Wrong Time
Replies: 10
Views: 1118

3 Fund (Bond Fund) at Wrong Time

My lack of foresight resulted in establishing a 60/40 retirement AA in January 2021, with the 40 dumped into SWAGX, which has obviously lost significant value since then.

I will avoid drawing from that segment of my savings as much as possible, but at this point, is there any alternative other than riding out the big dip, knowing I’ll be drawing from it at some point in the future?

Thank you.
by JDSwim3
Thu Jan 05, 2023 8:02 am
Forum: Personal Investments
Topic: Tax on December Roth Conversion
Replies: 2
Views: 349

Tax on December Roth Conversion

I do one lump conversion in December when I have a better feel for margin cap space.

Is the tax for that December conversion due with the January estimated tax, or can I wait until just before I file (typically mid-March)?
by JDSwim3
Mon Jan 02, 2023 8:20 am
Forum: Personal Investments
Topic: Considering the net present value of social security in asset allocation
Replies: 105
Views: 9748

Re: Considering the net present value of social security in asset allocation

ruralavalon wrote: Sun Feb 20, 2022 11:32 am
Personally I always counted Social Security as an income stream which would reduce the amount we needed to withdraw from our portfolio during retirement, rather than as a fixed income asset in our asset allocation.
+ 1
by JDSwim3
Tue Dec 27, 2022 8:03 am
Forum: Personal Investments
Topic: Is index fund investing the way to go?
Replies: 85
Views: 40877

Re: Is index fund investing the way to go?

Financially back 5 guys who just earned their PGA Tour cards, with a contract that nets you 10% growth with bonus options for significant performance.

You’ll strike out with 3-4, but could possibly hit the jackpot with 1 or 2.

Plus it will give you something to do on the weekends - traveling around to tournaments to cheer on your “investments”.
by JDSwim3
Tue Dec 27, 2022 6:49 am
Forum: Personal Investments
Topic: What are you doing with your iBonds?
Replies: 133
Views: 18838

Re: What are you doing with your iBonds?

runner3081 wrote: Fri Dec 23, 2022 9:07 pm Leaving as-is, second tier emergency fund.
+ 1
by JDSwim3
Tue Dec 27, 2022 6:28 am
Forum: Personal Finance (Not Investing)
Topic: Business Start-Up Questions
Replies: 9
Views: 708

Business Start-Up Questions

Not sure this is appropriate for this forum, but wanted to try.

My DIL is an associate in a chiropractic office, and wants to strike out on her own.

I know little to nothing about starting a business, so can’t offer advice other than very basic thoughts.

What are some of the factors she should be considering in preparation or contemplation of this leap? She is starting from zero in this adventure, and wants to be on her own July 1.

Thank you.
by JDSwim3
Fri Dec 09, 2022 6:42 am
Forum: Personal Investments
Topic: Roth Conversion Tax - TLH or Winners?
Replies: 4
Views: 658

Roth Conversion Tax - TLH or Winners?

Seeking opinions, factors, and rationale from smarter minds.

Converted $130K last week to the top of 22%. We have a brokerage account dedicated for conversion tax over the next few years.

Should I sell winners or losers to pay this year's conversion tax? Have a mix of both, so can cover tax with either. Note - have held everything more than one year.

TLH is not essential, and was hoping to see some recovery in the losers next year, providing more conversion potential. But our winners are more blue-chip oriented, so not sure we want to deplete those holdings.

And yes, conversions make sense for us. We are massively overweighted in tIRA vs Roth, with a significant equity position in the tIRAs.

Thanks!
by JDSwim3
Thu Nov 10, 2022 11:17 am
Forum: Personal Investments
Topic: Roth Conversion - Am I Missing Anything?
Replies: 11
Views: 1251

Re: Roth Conversion - Am I Missing Anything?

OP, See https://www.bogleheads.org/forum/viewtopic.php?f=10&t=354823 for some examples. WoodSpinner Having read through the recommended thread, the following are the comments that resonated with me: One of my primary reasons for converting to Roth IRA is Asset Location. I want a better balance between my qualified plans (401k and IRAs), my taxable accounts and Roth IRAs. The goal is to convert now at relatively low tax rates but also to reduce my RMD's to no more than I expect to need (thus saving a tax hit later since I wont' have to distribute more from my IRA's than I really need). It is a tax arbitrage decision, and it seems in my case that there is little payoff when converting after 2025 given current tax laws. My goal is to not ...
by JDSwim3
Thu Nov 10, 2022 8:44 am
Forum: Personal Investments
Topic: Roth Conversion - Am I Missing Anything?
Replies: 11
Views: 1251

Re: Roth Conversion - Am I Missing Anything?

Thank you for the detailed replies.

For clarification, our tIRAs are overly-weighted in equity index, so we’re moving as much as we can to Roth.

Our $500K total prospective conversion amount is merely reverse-math of how much tax funds we have available. No real logic other than that. Phasing of the conversions was looking mostly at near-term taxation, but also getting more equity into our Roth soon for longer-term tax-free growth.

Our total portfolio is not huge, so our budget dictates that distributions are not significant. As such, we would like to avoid RMD overages. Additionally, when one of us (most likely her) becomes a single filer, I don’t want her to get slammed with a potentially big bracket.
by JDSwim3
Wed Nov 09, 2022 5:20 pm
Forum: Personal Investments
Topic: Roth Conversion - Am I Missing Anything?
Replies: 11
Views: 1251

Roth Conversion - Am I Missing Anything?

Age 60, and earlier this year had enough funds in a brokerage account to pay conversion tax on about $500K (shares will be transferred in-kind from a tIRA). Had planned to convert $250K this year, $125K in 2022, and $125K in 2023. That plan would have us paying NIIT this year, but avoiding NIIT and IRMAA afterwards (based on our MAGI), as well as completing our conversions prior to TCJA expiration. Question - if we change our conversion plan to $125K, $250K, $125K, are we merely moving our NIIT and higher bracket hit to next year without inducing any other burdens? Rationale - we've lost some conversion tax value this year, and are hoping to recoup some of those losses next year so we don't have to sell a bunch of losers this year. Thank you.
by JDSwim3
Wed Nov 09, 2022 4:47 pm
Forum: Personal Investments
Topic: Roth Conversion - Liquidate versus Transfer
Replies: 14
Views: 1257

Re: Roth Conversion - Liquidate versus Transfer

Thank you all.

Transfer it is.
by JDSwim3
Wed Nov 09, 2022 1:42 pm
Forum: Personal Investments
Topic: Roth Conversion - Liquidate versus Transfer
Replies: 14
Views: 1257

Re: Roth Conversion - Liquidate versus Transfer

retired@50 wrote: Wed Nov 09, 2022 1:37 pm
If you're transferring stocks or stock funds out of the T-IRA and DO intend to hold the same shares in the Roth IRA, then selling would seem to be a wasted exercise.

Regards,
Yes, intend to hold the same US Total Market index fund shares in the Roth.

Just didn't know if there are particular downfalls with transfer versus liquidate or vice-versa.

Thanks.
by JDSwim3
Wed Nov 09, 2022 1:32 pm
Forum: Personal Investments
Topic: Roth Conversion - Liquidate versus Transfer
Replies: 14
Views: 1257

Roth Conversion - Liquidate versus Transfer

Are there any advantages or disadvantages regarding the method of Roth conversion - liquidating and buying versus transfer?

I don't believe wash sale rules apply, so I can't think of any reason one method is better than the other.

Thanks.
by JDSwim3
Mon Oct 31, 2022 4:11 pm
Forum: Personal Investments
Topic: Future AA Rebalance Question
Replies: 2
Views: 291

Future AA Rebalance Question

Both age 60, retired, current AA 55/45, but with too much of the equity piece in our tIRAs versus Roths. Planning significant equity index conversions over the next 3 years to tilt the tIRAs to bond index, thereby hoping to manage growth and avoid RMDs beyond our living expense needs in the future. Roths are currently 100% equity index. We intend to leave the Roths alone until needed, drawing from the bond fund-tilted tIRAs for living expenses. Obviously, drawing from only the bond side will tilt our AA to equity over time. So, the question becomes - will we need to forego some of the benefit of tax-free growth in the Roths, and periodically transfer equity to bond within the Roths to maintain our AA? Or should we also draw from the equity ...
by JDSwim3
Tue Oct 18, 2022 3:56 pm
Forum: Personal Investments
Topic: I Bond Inflation Calculation?
Replies: 4
Views: 735

I Bond Inflation Calculation?

Sorry, I'm wrapped around the axle on this one, and the answer is probably obvious and I'm just missing it.

How is the inflation component of I Bonds calculated?

TD site says it's the "rate" of CPI-U change over the previous 6 months. But hypothetically, if the "rate" of change has stabilized or decreased, doesn't that mean the "rate" of change is 0 or negative?

So with the upcoming adjustment of 6.4%, does that mean CPI-U was up 6.4% on top of the previous 6 months 9.62?
by JDSwim3
Tue Oct 18, 2022 3:28 pm
Forum: Personal Investments
Topic: What Estimated Return for 25/75 tIRA?
Replies: 2
Views: 374

What Estimated Return for 25/75 tIRA?

Our tIRAs are currently weighted 55/45 across a 3 fund portfolio.

To help avoid unnecessary RMD levels in 12 years and beyond, I'm currently planning to convert a significant portion of the equity funds to our Roths over the next 3 years. Unfortunately, available tax cash will not allow us to convert all of it. Note - QCDs are most likely not an option for us.

After conversions and living expense withdrawals (hopefully from equity growth), we will have a roughly 25/75 AA remaining in our tIRAs.

I know, I know, there are no crystal balls, but what might be a reasonable average annual return estimate for that eventual 25/75 allocation in the tIRAs?

Just guesstimating future RMDs.

Thank you.
by JDSwim3
Mon Oct 17, 2022 4:48 pm
Forum: Personal Investments
Topic: Treasury Direct- New iBond Buy Warning, able to buy gifts again?
Replies: 135
Views: 14757

Re: Treasury Direct- New iBond Buy Warning, able to buy gifts again?

DW and I bought $10K in gift bonds for each other today.

Since we each had already purchased $10K apiece in 2022, am I correct in assuming the gift box deliveries cannot occur until at least January 1st?

Also, since we have an LLC, could that entity also purchase gift bonds for each of us, and vice-versa? That LLC did already buy $10K this year.
by JDSwim3
Wed Oct 12, 2022 2:17 pm
Forum: Personal Investments
Topic: I Bond vs HYSA
Replies: 11
Views: 2044

Re: I Bond vs HYSA

Nver2Late wrote: Wed Oct 12, 2022 1:57 pm
The process was;
1. BuyDirect
2. Click ibonds, submit.
3. Add the new Registration (for the gift recipient)
4. Designate purchase for this new registration, than click the little box "This is a Gift". Then Submit.
5. Purchase Amount.
6. Source of funds.
7. Continue.
8. Review terms and Submit.

I'm not sure if they have changed it on the new site modifications.
When I added the new registrant (DW) and selected "buy as a gift", I was taken back to the regular purchase screen. At that point it was unclear to me whether I am supposed to select myself in the registrant box (as the purchaser) or DW (as the recipient). Regardless, it returned the $10K overage error code on each.
by JDSwim3
Wed Oct 12, 2022 1:49 pm
Forum: Personal Investments
Topic: I Bond vs HYSA
Replies: 11
Views: 2044

Re: I Bond vs HYSA

The Finance Buff on gifting I Bonds: https://thefinancebuff.com/buy-i-bonds-as-gift.html The husband and I did this - bought gifts for our 2023 + 2024 I Bond purchases in advance. I personally wouldn't want to go out too many years, but if the fixed rate rises next month we'll consider gifting another set next year for 2025. I just saw the below note on The Finance Buff link you provided: [Update on October 11, 2022: A recent TreasuryDirect website update prevented gift purchases when you already bought the maximum $10,000 for yourself this year. I reported this as an inadvertent technical implementation error to TreasuryDirect. I believe it will be fixed eventually but it may take some time.] I found the step-by-step instructions, but it'...
by JDSwim3
Mon Oct 10, 2022 9:58 am
Forum: Personal Investments
Topic: Kinda dumb rebalance arithmetic question
Replies: 6
Views: 619

Re: Kinda dumb rebalance arithmetic question

I use the 5 / 25 that dbr mentioned above.
by JDSwim3
Mon Oct 10, 2022 9:48 am
Forum: Personal Investments
Topic: I Bond vs HYSA
Replies: 11
Views: 2044

I Bond vs HYSA

Retired, and have about 3 years of expense cash to draw from when the market is down rather than selling losers from my 3 fund portfolio.

It was all in a HYSA, but I took $30K of it and bought I Bonds in May at 9.62% since it will earn a bit more than the HYSA.

Question - when January rolls around, should I buy 3 more, even though the next adjustment will be lower, but should still beat the HYSA?

I would still have enough immediately available in the HYSA to cover the minimum hold periods of the I Bonds.

Thank you.
by JDSwim3
Tue Jun 14, 2022 9:57 am
Forum: Personal Investments
Topic: Correct Firecalc Inputs?
Replies: 2
Views: 537

Correct Firecalc Inputs?

On the Portfolio tab of Firecalc, if my “Fixed Income” component is an Intermediate Bond Fund (SWAGX), which selection do I make?
by JDSwim3
Sun May 08, 2022 7:20 am
Forum: Personal Investments
Topic: What Loss Percentage to Draw From Cash?
Replies: 19
Views: 1818

Re: What Loss Percentage to Draw From Cash?

KlangFool wrote: Sat May 07, 2022 4:34 pm
B) Then, it is probably good enough.

KlangFool
If I interpret your response correctly, you’re saying I should continue drawing from investments versus my potentially reclassified EF cash, even though the market is down?

Under what market conditions would you personally tap your EF cash for living expenses versus selling losers?
by JDSwim3
Sat May 07, 2022 4:26 pm
Forum: Personal Investments
Topic: What Loss Percentage to Draw From Cash?
Replies: 19
Views: 1818

Re: What Loss Percentage to Draw From Cash?

A) Yes. About 3 x monthly residual after pension.

B) Yes.

C) 33x

D) Great coverage through former employer until Medicare age. Tiny premium, reasonable deductible.
by JDSwim3
Sat May 07, 2022 3:10 pm
Forum: Personal Investments
Topic: What Loss Percentage to Draw From Cash?
Replies: 19
Views: 1818

Re: What Loss Percentage to Draw From Cash?

A little clarification on my part, which in addition to your inputs eases my concerns just a bit. Even though retired in mid-2020, didn't roll over savings into the 3 Fund portfolio until January 2021 (savings were kept in my company account to use Rule of 55 withdrawals if needed). I know I did well in my 401K, but I sheepishly admit I didn't really start laser focusing on ROI until I rolled everything over into the 3 Fund and had to begin drawing from it for living expenses. Note - my company provided 6 months salary incentive for taking an early out, so we lived on that mid-2020 through January 2021. So my analysis is really based on only what has happened since January 2021, which isn't pretty. Total portfolio is down 1.1%, bond fund do...
by JDSwim3
Thu May 05, 2022 6:32 pm
Forum: Personal Investments
Topic: What Loss Percentage to Draw From Cash?
Replies: 19
Views: 1818

Re: What Loss Percentage to Draw From Cash?

I know, to each his own, and what allows you to sleep…

Just looking for a barometer of opinions when one might consider drawing cash versus selling losers given my 60/40 AA providing two-thirds of our expenses.
by JDSwim3
Thu May 05, 2022 6:20 pm
Forum: Personal Investments
Topic: What Loss Percentage to Draw From Cash?
Replies: 19
Views: 1818

What Loss Percentage to Draw From Cash?

Retired in July 2020, and put our life savings in a 3 fund portfolio at roughly 60/40, with 2 years of living expense cash as a safety net (non-EF) in a HYSA.

Firecalc says we’re okay, but I’m having major SORR concerns.

What percentage “loss” since inception should be my limit to begin tapping the cash versus pulling from our invested portfolio? Note, we currently do not have a means to replenish that cash reserve.

Pension provides about a third of living expense, with savings making up the remaining two-thirds. Her SS will begin in 2 years at 62, mine hopefully in 10 years at 70.

Sure wish I wouldn’t have dumped so much in the bond fund initially, but that ship has sailed.

Thanks for your thoughts.
by JDSwim3
Sat Apr 23, 2022 3:15 pm
Forum: Personal Investments
Topic: Milestone hit-Seeking advice!
Replies: 26
Views: 4286

Re: Milestone hit-Seeking advice!

You're in great shape!

The one thing that jumped out to me was the ratio of tIRA / 401K versus Roth. You may want to seriously look at conversions to avoid what could become significantly higher RMDs than needed down the road.
by JDSwim3
Sun Mar 06, 2022 5:14 am
Forum: Personal Investments
Topic: Uneven Estimated Tax Payments
Replies: 6
Views: 1376

Uneven Estimated Tax Payments

If I meet either of the safe harbor 90% or 100% rules, but make uneven quarterlies, am I subject to any penalties?

Will be doing a large Roth conversion in December, but will only pay its related tax in the January quarterly. Previous 3 quarterlies will account for all other known income.
by JDSwim3
Sat Mar 05, 2022 6:57 am
Forum: Personal Investments
Topic: Trad IRA vs Roth Diversification
Replies: 15
Views: 1892

Re: Trad IRA vs Roth Diversification

With a 10 year age difference, another factor would be the relative higher tax rate of the surviving spouse (assuming wife in this case).

Filing single down the road with RMD, spousal SS, pension(?), might lead one to tilt Roth, or at least consider eventual conversions.
by JDSwim3
Sat Mar 05, 2022 6:40 am
Forum: Personal Investments
Topic: Simple question about calculating my asset allocation in retirement
Replies: 17
Views: 2160

Re: Simple question about calculating my asset allocation in retirement

Parkinglotracer wrote: Sat Mar 05, 2022 4:46 am To me if I hold cash before I spend it I have decided to allocate that to cash. Not to get bogged down in details. If it is a relatively small Amount of cash as measured by the % of your portfolio then it is not going to affect your AA.

I have about a year or two of retirement spending in a t Mobile checking account getting 1% fdic insured and I count that as part of the allocation of my current portfolio.
Quick hijack.

What restrictions or costs on the T Mobile account - fees, direct deposit, transactions, etc…?

My HYSA (Summit) has dropped to 0.4 over the last few months.