Search found 33 matches

by Abbey
Sat Jul 21, 2012 2:50 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1561180

Re: What Book Are You Currently Reading? Part V

Imagine by Jonah Lehrer & The Elusive Eden: A New History of California by Rice, Bullough & Orsi.
by Abbey
Thu Oct 27, 2011 4:08 pm
Forum: Personal Investments
Topic: when can I contribute to IRA 2012
Replies: 4
Views: 565

Re: when can I contribute to IRA 2012

"Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions." IRS Pub 590.

January 1, 2012
by Abbey
Wed Oct 26, 2011 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Money and in-laws
Replies: 59
Views: 8576

Re: Money and in-laws

You have many good answers/reasons for each option but I'll add one more. IF and only if your wife insists on giving him more money, make it a matching program. Match a percentage of each paycheck he shows you up to some amount/month and some total limit (your own little company 401 plan). Tie it to a written financial plan. I'm curious why he's no longer in law school. Too expensive or just too hard to get up in the morning? That should make a difference in further funds. You might also have several conversations with her about how she got through to her PhD, who funded it, how she knew what she wanted to do, etc. I'm pretty sure she was focused, frugal and dedicated. Is he the same? How would giving him money help him develop these charac...
by Abbey
Sat Oct 15, 2011 3:04 am
Forum: Personal Investments
Topic: Purchase of pension time
Replies: 4
Views: 1019

I had this opportunity several years ago with a three year payment option. Within two months the plan changed to pay immediately. Fortunately I had the funds, too. Take the stretch but watch carefully for an "early call."
by Abbey
Thu Apr 21, 2011 3:59 pm
Forum: Personal Investments
Topic: Are the fees in this unmatched 401(k) too high?
Replies: 10
Views: 1661

cirullo and lawman3966 , There are some $50-100 fees to apply for a loan, close/transfer the account and establish the RMD. There is no reference to a wrap fee. In 2009 all other fees were paid by the company. However, the plan says we will pay a pro rata share if/when the company chooses not to do that. So, I'm checking again on the amounts. Thanks for the advice. I'll let you know what I learn. Watty , I ran TurboTax but the scenarios were very close to the cut offs. Small changes move us under or over. So it seems prudent to maximize the possibility tax-wise but not expect it. He could start a Roth 401 but this year the regular 401 looks like the better choice. Thanks for the reminder to keep checking in with TurboTax as the year goes on.
by Abbey
Thu Apr 21, 2011 9:06 am
Forum: Personal Investments
Topic: Are the fees in this unmatched 401(k) too high?
Replies: 10
Views: 1661

kenschmidt,
Thank you. I forgot mf yields are net of expenses. :oops:
by Abbey
Thu Apr 21, 2011 8:37 am
Forum: Personal Investments
Topic: Are the fees in this unmatched 401(k) too high?
Replies: 10
Views: 1661

Kenyan, 1% is not that bad as far as a lot of plans go. It's definitely not enough to make investing in taxable (in low-cost funds) preferable. If you're mathematically inclined, make a spreadsheet to convince yourself of this - compare taxable investing with a low expense ratio vs. funds in this plan, and vary the rate of return and various tax rates. Subtract the excess expenses from your return in your 401(k). Thanks for a quick, helpful response. I created a spreadsheet and see what you mean. So the only remaining problem is choosing a fund. Previously there's been at least one index fund with a significantly lower ER. None of these are indexes (well, maybe closet ones) and all the ERs are similar. I am inclined to exclude the bond, gov...
by Abbey
Thu Apr 21, 2011 1:15 am
Forum: Personal Investments
Topic: Are the fees in this unmatched 401(k) too high?
Replies: 10
Views: 1661

Are the fees in this unmatched 401(k) too high?

DH has a new job (and new 401(k) plan). The plan summary states there is no match but the official plan documents detail how matching & profit sharing will occur so they may match in the future. Reason to fund this: If we both max our 401s we may be able to contribute to an IRA. Otherwise only DH can utilize the backdoor Roth. Reason against: Fees seem very high. The bond fees in particular eat up half the return. His NEW 401(k) - All with American Funds New World RNWCX 1.38 Small Cap RSLCX 1.44 EuroPacific RERCX 1.15 AMCAP RAFCX 1.08 New Perspective RNPCX 1.12 Growth Fund RGACX 0.97 Capital Wld Gwth & Inc RWICX 1.10 Investment Co of Amer RICCX 0.97 Washington Mutual RWMCX 1.03 Income Fund RIDCX 0.99 Balanced Fund RLBCX 0.94 High In...
by Abbey
Wed Apr 13, 2011 9:31 pm
Forum: Investing - Theory, News & General
Topic: My First Boglehead Reunion (Bogleheads 10)
Replies: 27
Views: 4464

This will be my first Boglehead meeting, too. Thanks for all the information you've posted. I'm looking forward to some great discussions and especially the visit to Vanguard.
by Abbey
Tue Mar 15, 2011 9:56 pm
Forum: Personal Investments
Topic: Roth conversion question
Replies: 2
Views: 830

Thanks. I couldn't find a reference to exactly what we want to do and don't want to complicate anything. This helps.
by Abbey
Mon Mar 14, 2011 10:22 pm
Forum: Personal Investments
Topic: Roth conversion question
Replies: 2
Views: 830

Roth conversion question

DH had a small after-tax IRA (with some earnings) and converted it to a Roth in February this year. Can he still contribute to an after-tax IRA for 2010 & immediately convert it?
I'm concerned about the end-of-year classification of the IRA money and whether or not this will cause some of the previous conversion to be reclassified since a small part of it was tax-deferred.
Thanks very much.
by Abbey
Fri Feb 18, 2011 11:47 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth IRAs Could Cost Some Investors at Tax Time
Replies: 30
Views: 20716

Is it correct that I can only convert once a year from IRA to Roth? I believe I read that but can't find the section in the IRS code.
by Abbey
Fri Feb 11, 2011 9:14 pm
Forum: Personal Investments
Topic: Advice for revised portfolio
Replies: 10
Views: 2127

As long as you're reasonably close to your desired allocation, things are fine.
Thanks for the reminder and for the information about 401 conversions. That's a mistake avoided!
by Abbey
Thu Feb 10, 2011 10:19 pm
Forum: Personal Investments
Topic: Advice for revised portfolio
Replies: 10
Views: 2127

This is my current iteration of our AA. I haven't moved all my accounts to Vanguard, but will when our plan is set. He converted his IRA to Roth yesterday and will fund 2010-11 IRA/ convert to Roth in March. Taxable (8.9%) 1.3% Vgd Tot Stk Idx VTSAX (.07) 4.0% Pimco Municipal (PMUPX) (.55) 3.6% Vgd Tot Intl (VTIAX) (.23) New money: $6000 to Vanguard funds. His Roth (2.5%) 2.5% Bank CD @ 4.8% (matures this year) then move to VBILX (Intermed Bond) New money: $6000 (backdoor Roth) – to VBILX His 403(b) at Fidelity (12.5%) 12.5% Spartan 500 Idx (FUSEX) (.10) His 2nd 401(k) at Fidelity (3.5%) 3.5% Spartan Tot Mkt Idx (FSTMX) (.1) OR Spartan Extended Mkt Idx (FSEMX) (.1) His 1st 401(k) at Merrill Lynch (15.9%) 15.9% Blackrock S&P 500 Idx (MDS...
by Abbey
Wed Feb 09, 2011 4:42 pm
Forum: Personal Investments
Topic: Advice for revised portfolio
Replies: 10
Views: 2127

I edited the post with choices for his 401 & 403.

Thanks for all the help.
by Abbey
Fri Feb 04, 2011 11:57 am
Forum: Personal Investments
Topic: Advice for revised portfolio
Replies: 10
Views: 2127

First question I have is why 65/35 at age 55? Conservative/traditional advice is Age in Bonds (55%). More modern/less conservative advice is Age - 10 in Bonds (45%). You're at "Post-modern" = Age - 20 in bonds. I try to avoid things I don't understand as investments. Things I've read, including Bogle, suggest that bond funds don't perform as well as individual bonds which has also made me wary of funds. Although previous downturns didn't bother me, I realize we won't have the luxury of waiting out another. So we need a less volatile plan and I must learn about bonds. What makes it even more confusing is that your current AA if you include cash in bonds/fixed income is actually 45/55. We married recently. I think these choices are...
by Abbey
Thu Feb 03, 2011 6:50 pm
Forum: Personal Investments
Topic: Advice for revised portfolio
Replies: 10
Views: 2127

It's more complicated than that. He has to keep those funds out of an IRA in the same year as the conversion. The calculations look at the status of all IRAs on 12/31 of the conversion year. I knew I had insufficient information and that bogleheads could help. Thanks for keeping me out of this morass. You have enough assets and flexibility in her 401k and her Roth so that you can focus your assets in his 401k on the "least bad fund", likley an S&P500 fund with the lowest cost. Once you focus his 401k assets in lower cost funds, you can achieve overall portfolio balance my making adjustments in your other accounts. I missed that idea completely since I've been so focused on getting out of his high fee 401s. But it makes sense ...
by Abbey
Thu Feb 03, 2011 5:49 am
Forum: Personal Investments
Topic: Help with prospectus! **Updated information
Replies: 9
Views: 1511

This was my situation for many years, too. I maxed out my Roth every year which I'm sure you do. The 529 might be a good plan although Texas' are not too good as I recall. When you children are old enough to legitimately help, pay them half and half. Half to them and half into a Roth in their names. Be careful to keep very good records of very legitimate jobs at market rates (after-school/PTA night babysitting or yardwork.) You'll probably have to start with a credit union IRA account with very small accounts but you can transfer it later. Ask your superintendent if you can be on the 403 committee and advocate for moving to a lower cost structure. There are a number of threads on this site about choosing plan administrators. This is a long-...
by Abbey
Wed Feb 02, 2011 9:37 pm
Forum: Personal Investments
Topic: Advice for revised portfolio
Replies: 10
Views: 2127

Advice for revised portfolio

I've edited his 401 & 403 to include fund options. Fidelity also offers some (but not all) of their actively managed accounts. I didn't include them since we prefer indexes. I did include all the bond & balanced options. His funds that seemed most useful are bolded - US stock index. Then we increase bonds in "hers." Correct? Will we need a US small/mid fund? Emergency funds = 6-12 months of expenses Debt: None Tax Filing Status: Married filing Jointly Tax Rate: 33% Federal; 0% State (TX) Age: both 55 Desired Asset allocation: (US/Intl/Bond/REIT = 40/20/35/5) If this is wrong, we can adjust. Current portfolio: mid-6 figures Taxable 0.7% cash 4.0% Pimco Municipal (PMUPX) (.55) 0.6% Dodge & Cox Stock (DODGX) (.52) 3.6% Vg...
by Abbey
Mon Jan 31, 2011 10:41 pm
Forum: Investing - Theory, News & General
Topic: Grok's tip #6/10: Be Aligned: Buy This, Not That!
Replies: 60
Views: 18835

Another thank you for the tips. I appreciate all the thoughtful posts and assistance here... and try very hard to follow all the nuances.
by Abbey
Thu Jan 27, 2011 9:12 pm
Forum: Personal Investments
Topic: Help with prospectus! **Updated information
Replies: 9
Views: 1511

What state are you in? Vanguard is an option in Texas.
You might call the 403(b) administrator and get a list of non-annuity options if you haven't already done that.
by Abbey
Sun Jan 23, 2011 11:30 am
Forum: Personal Investments
Topic: What do do with my individual stocks
Replies: 23
Views: 3286

Computershare usually has records of your DRIPS 5-10 years back. Sometimes further. Get as much information as you can on the dates & prices; put it into a spreadsheet or Quicken.
Identify the lots you sell. If you use average cost once, you must use it for all future sales of that stock.
Subdivide your spreadsheet to distinguish the purchases you can't find prices/dates. As you want to make charitable donations, THESE are the ones to gift.
As others stated, turn off the DRIPS. Don't need a wash.
by Abbey
Sat Jan 15, 2011 7:01 pm
Forum: US Chapters
Topic: Rick Ferri in HOUSTON on January 15, 2011
Replies: 46
Views: 10582

Thank you, Rick, for your very informative presentation and discussion. Sometimes we all need to be reminded to stick with indexing.
And thanks to everyone who attended. I look forward to the next meeting of the Houston chapter.
by Abbey
Sun Jan 09, 2011 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage payoff advice for 61 year old boomers
Replies: 24
Views: 4380

FYI: Fully funding the Roth means $24,000. $6000 each for you and spouse for 2010 and again for 2011.
by Abbey
Sun Jan 02, 2011 10:03 am
Forum: Investing - Theory, News & General
Topic: How much in harvested losses is enough?
Replies: 17
Views: 2923

DS Investor: Thanks for the easy explanation. I confused selling taxable with converting IRAs when it's a two step process. This will be a great way to convert to Roth in early retirement assuming we haven't used up all our losses. :) Abbey
by Abbey
Sat Jan 01, 2011 10:47 pm
Forum: Investing - Theory, News & General
Topic: How much in harvested losses is enough?
Replies: 17
Views: 2923

Carryover losses & Roth conversions?

livesoft wrote: In retirement while drawing down your taxable assets, you will be using up those carryover losses. This will allow you to live on $100K per year tax-free for a number of years, but you should use that opportunity to convert some of your IRA/401(k) money to a Roth IRA while in a low tax bracket.
I didn't realize this was possible in retirement. Doesn't the conversion count as regular income?
Is is possible to use carryover losses to reduce income when converting IRA to Roth while still working or must you wait until retirement? As you can see, I don't quite get this and I'd appreciate any explanations you offer. Thanks.
by Abbey
Sat Jan 01, 2011 2:44 pm
Forum: Investing - Theory, News & General
Topic: 2011 BOGLEHEAD CONTEST REGISTRATION
Replies: 374
Views: 43989

1392.
by Abbey
Fri Dec 31, 2010 5:58 pm
Forum: US Chapters
Topic: Rick Ferri in HOUSTON on January 15, 2011
Replies: 46
Views: 10582

Location suggestion for Rick Ferri meeting

The Cafe Express north of the Galleria has a couple of room-like divisions. We might be able to use one of them. No doors, but I don't think they'd charge us to use the area... just need to order some food.
The address is 1101 Uptown Park Blvd # 12, Houston - (713) 963-9222
by Abbey
Tue Dec 28, 2010 10:27 pm
Forum: US Chapters
Topic: Rick Ferri in HOUSTON on January 15, 2011
Replies: 46
Views: 10582

natureexplorer wrote:Great! January 15, 2011, at 2:00 pm it is.

Everyone interested, mark you calendars:
Date: Saturday, January 15, 2011
Time: 2:00 pm
Location: To Be PM'ed, Houston, TX

If you are planning to attend, please post in this thread, so we know what number of people we can expect.

Anyone got any ideas for a good place to have this?
I will be there. I recently moved to Houston.
by Abbey
Sun Oct 24, 2010 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial Agreement drafted
Replies: 177
Views: 21140

My husband and I have a prenup and use the his, mine & ours allocation. I seriously encourage you to begin a two-way conversation about finances with her.

Let her tell you what she plans for life, why she got in debt, what money means to her, what emotional ties money has, how her family handles money. Plan to cover all the things you've discussed with your attorney and on this thread. She's wonderful enough that you want to marry and have children with her. Her point of view is just as valid and she'll come up with some scenarios you won't.

When you both lower your guard enough to discuss this and work out a budget, you'll be much better off than just discussing it with your attorney.
by Abbey
Sun May 30, 2010 11:36 pm
Forum: Personal Investments
Topic: Portfolio advice & fund placement questions
Replies: 5
Views: 1342

I spent part of the day looking on M* and Vanguard at the funds you suggested and some others. Here's my current iteration. Taxable Accounts 6% Total Stock Market (VTSMX) (.18 ) 5% FTSE ex-US Stock Idx (VFWIX) (.40) or Tax Managed Int'l (VTMGX) (.20) no cash (CDs) in Taxable New money: $4000 Roth 13% Total Stock Market (VTSMX) (.18 ) 10% FTSE ex-US Int'l Idx(VFWIX) (.40) 5% Energy Stock Idx (VGENX) (.38 ) IRA 9% CDs 15% Intermediate Bond (VBIIX) (.24) 15% Vanguard TIPS Index (VIPSX) (.25) 15% Total Stock Market (VTSMX) (.18 ) 2% REIT (VGSIX) (.26) New Money: $6000. 403(b) 3% Vanguard REIT Index (VGSIX) (.26) 1% ING Money Mkt (Other choices have very high expenses & no match.) I took FTSE ex-US Small out because it had purchase and redem...
by Abbey
Sun May 30, 2010 6:03 am
Forum: Personal Investments
Topic: Portfolio advice & fund placement questions
Replies: 5
Views: 1342

Landy, Thanks for the reply. I agree with you about separate AAs but can't think of a better way. Since in the final disposition these assets will go to someone else, I'd hate to have all the equities or vice-versa. It seemed more prudent to duplicate the overall AA with each group. I'd be interested in hearing how others in this situation handle assets. Do I really need 25% international if I have large cap US? AmCap, Dodge & Cox and TSM are weighted that way. Aren't most large caps multinationals or am I "blissfully ignorant"? Taxable Accounts 6% Total Stock Market (VTSMX) 5% FTSE ex US Small (VFSVX) no need for cash (CDs) in Taxable, especially at the higher tax bracket. New money: $4000 I was afraid the CDs would not be su...
by Abbey
Sat May 29, 2010 11:48 pm
Forum: Personal Investments
Topic: Portfolio advice & fund placement questions
Replies: 5
Views: 1342

Portfolio advice & fund placement questions

I would like some advice and opinions about my portfolio placement. I've saved/invested for years and have reached the point where it is hard to re-balance with new money only. Recently married. We will keep our original assets separate so this is my portfolio only. When I get mine straight, I'll work on DH and finally our joint (future) assets. I realize we'll have overlapping funds. Please accept my apologies for the extra trouble this causes anyone kind enough to offer advice. I have no debt. Future tax bracket 33% federal, 0% state (TX). Married, filing jointly. Both mid-50's. Emergency funds = 18 months (I have some upcoming expenses.) I will have a non-COLA pension when I retire in 5 years (estimate 48% of small salary) Total funds mi...