Search found 13154 matches

by The Wizard
Mon Jun 17, 2019 8:55 pm
Forum: Personal Investments
Topic: IRA and taxes. Is a taxable account better?
Replies: 8
Views: 634

Re: IRA and taxes. Is a taxable account better?

Pepper11 wrote:
Mon Jun 17, 2019 8:52 pm
It's an IRA and nothing within it has been deferred. It's all post tax income.
But as time goes on, it will GROW, and that growth is tax-deferred...
by The Wizard
Mon Jun 17, 2019 8:50 pm
Forum: Personal Investments
Topic: IRA and taxes. Is a taxable account better?
Replies: 8
Views: 634

Re: IRA and taxes. Is a taxable account better?

Now a 401(k) or 403(b) account should be totally tax deferred and treated entirely as ordinary income upon withdrawal...
by The Wizard
Mon Jun 17, 2019 8:48 pm
Forum: Personal Investments
Topic: IRA and taxes. Is a taxable account better?
Replies: 8
Views: 634

Re: IRA and taxes. Is a taxable account better?

That article is too simplistic and wrong, correct...
by The Wizard
Mon Jun 17, 2019 8:23 am
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

If total income in 2018 is $94k you are in the 12% Fed bracket MFJ. How do you come up with 24%? Cheers I double checked IRS tax brackets for 2018. It stated 24% for MFJ......$82,500- $165k. Obviously, I erred somewhere in my analysis. That range is for filing Single. MFJ is double that. https://ta...
by The Wizard
Sun Jun 16, 2019 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: ....Start SS at December of FRA?
Replies: 12
Views: 1237

Re: ....Start SS at December of FRA?

...[Watty, We have to be concerned about trying to convert too much to stay away from IRMAA threshold the two years prior to Part B ... which, alas, is right about now.... but looking again, max of 24% MFJ is 165k while IRMAA is 170K, just squeeks in... ] {yeah, I know, first world problems of havi...
by The Wizard
Sun Jun 16, 2019 4:43 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

It's not just the next higher tax bracket, it's the total amount of tax that matters.
22% tax bracket goes from about $39k to $84k per person, a wide range.
Best not to have a 50% increase in Taxable Income once RMDs start.
But do as you please...
by The Wizard
Sun Jun 16, 2019 3:39 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

...In general; it's best to convert and amount up to just below the next tax bracket. I don't agree. What if your Taxable Income before Roth conversion is just $500 below the top of the 12% bracket? Or what if it's $500 ABOVE the start of the 24% bracket? What's better is to use Roth conversions to...
by The Wizard
Wed Jun 12, 2019 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and expected life span
Replies: 30
Views: 2614

Re: RMD and expected life span

The IRS RMD tables take that into account and state the life expectancy "duration" at specific ages. Is the RMD designed so one dies with no money in the account? Life expectancy is the median, half will live longer and half will live less than the posted number. I hope the RMD is not that strict o...
by The Wizard
Wed Jun 12, 2019 8:11 am
Forum: Investing - Theory, News & General
Topic: Info request on your withdrawals in retirement
Replies: 13
Views: 1755

Re: Info request on your withdrawals in retirement

I retired at age 63 in 2013. Initially, I had around 25X annual expenses in my tax-deferred account, but I annuitized a significant portion of that for lifetime income. I started divorced spouse SS income at my FRA of 66 and will start my much larger age 70 SS benefit in nine months. My withdrawal m...
by The Wizard
Wed Jun 12, 2019 7:35 am
Forum: Personal Investments
Topic: Good Investments for 2-5 Years in Taxable
Replies: 33
Views: 3539

Re: Good Investments for 2-5 Years in Taxable

In my taxable account, I hold both VFIAX (S&P 500) and VTSAX (Total Stock Market) right now, due to a TLH maneuver a while back. These funds will be used to buy a new car every so often. I no longer hold any bond funds or savings accounts in taxable; I don't like paying additional ordinary income ta...
by The Wizard
Mon Jun 10, 2019 7:47 am
Forum: Investing - Theory, News & General
Topic: AA : willingness, ability, need
Replies: 24
Views: 1830

Re: AA : willingness, ability, need

The NEED criteria is the difficult one. Let's say you're 20 years from when you want to retire and don't have much saved for it. So does this mean your NEED is high and you should go 90% stock funds to catch up? I'm not sure; that could backfire. Or in case of a retiree with ample income streams who...
by The Wizard
Fri Jun 07, 2019 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Trad to Roth IRA
Replies: 5
Views: 458

Re: Trad to Roth IRA

Please read the Wiki. https://www.bogleheads.org/wiki/IRA_recharacterization Wondering if all the parts of the wiki page talking about recharacterizing a conversion should be deleted, now that it is not permitted anymore. Or at least separated out and put in a historical section. Yes, they should...
by The Wizard
Fri Jun 07, 2019 12:21 pm
Forum: Investing - Theory, News & General
Topic: Portfolio that maximizes number of profitable months
Replies: 5
Views: 382

Re: Portfolio that maximizes number of profitable months

In a platform I frequent, I've observed the phenomenon where some people invest in an asset only to close their position a few days later with a loss. However, if the assets they invest it are in the green, even if by a paltry amount, they seem content to keep the position open... Sounds like a los...
by The Wizard
Wed Jun 05, 2019 8:18 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 951
Views: 94318

Re: U.S. stocks continue to soar!

...How do you load up after the dip? You leave cash on the sidelines and watch the market climb waiting for a dip? Load Up may be the wrong term, at least for me. I try to buy on the dips most months with excess New Money that hits my checking account each month. The S&P500 was trending lower Monda...
by The Wizard
Tue Jun 04, 2019 1:05 pm
Forum: Personal Consumer Issues
Topic: Walking Cities, potential for retirees
Replies: 92
Views: 7226

Re: Walking Cities, potential for retirees

Boston and Cambridge qualify.
I live 15 miles away now, but I'll be strolling about for two games at Fenway Park this coming weekend...
by The Wizard
Tue Jun 04, 2019 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Required Minimum Distributions
Replies: 57
Views: 4564

Re: Required Minimum Distributions

...Since our RMD's are fully funded by fund distributions - with the vast majority coming in December of the previous year... Hmm, stock fund dividends are around 2% per year right now. And I'm not up to speed on bond funds but aren't they around 3% per year? So I don't see how you get close to 4% ...
by The Wizard
Tue Jun 04, 2019 11:34 am
Forum: Personal Consumer Issues
Topic: Being given charity that I don't need
Replies: 45
Views: 3534

Re: Being given charity that I don't need

If you're paying in cash, just leave the change on the counter.

I get senior discounts on certain things and am quite okay with that, but they're nowhere close to 30%...
by The Wizard
Tue Jun 04, 2019 7:26 am
Forum: Personal Consumer Issues
Topic: Autos and transportation near retirement
Replies: 33
Views: 2063

Re: Autos and transportation near retirement

I'm single and retired in 2013 with two vehicles, a 2004 Ford Ranger pickup and a 2008 Mustang convertible, both bought new. As with some others here, I tend to use the truck for hauling things and in winter weather. I also use it at the girlfriend's place, with 10 acres of trees for firewood. The R...
by The Wizard
Sun Jun 02, 2019 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Older retirees: Are your expenses lower now than in early retirement?
Replies: 49
Views: 6220

Re: Older retirees: Do you have lower expenses now than you did in early retirement?

...I've been thinking if there's any good reason to delay SS "beyond" 70???? j :D No sure if your comment was in jest, but your SS benefit doesn’t increase after 70. So the answer is no. No is correct. And in my case, age 69 and living in New England, I continue to cut, split, and stack tons of har...
by The Wizard
Sun Jun 02, 2019 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Older retirees: Are your expenses lower now than in early retirement?
Replies: 49
Views: 6220

Re: Older retirees: Do you have lower expenses now than you did in early retirement?

Reroof your own home. . . . :shock: Wow!!! You are Formidable Indeed! Similar age and status. Now, everything hurts to do "what I used to do". :shock: I've been thinking if there's any good reason to delay SS "beyond" 70???? j :D I'm an engineer and did a significant addition to my house in my 30s/...
by The Wizard
Sun Jun 02, 2019 8:05 pm
Forum: Personal Investments
Topic: Maximum amount of Tax Loss Harvesting advisable per year?
Replies: 27
Views: 1501

Re: Maximum amount of Tax Loss Harvesting advisable per year?

Dumb question: What is the max TLH allowed in a tax year? Max TLH is unlimited... How much loss can you claim in one tax year? There is no limit per se. You can claim $1 million capital loss as long as you have $1 million in capital gains to offset it. What? No. Capital loss carry-forward is what h...
by The Wizard
Sun Jun 02, 2019 7:53 pm
Forum: Personal Investments
Topic: Maximum amount of Tax Loss Harvesting advisable per year?
Replies: 27
Views: 1501

Re: Maximum amount of Tax Loss Harvesting advisable per year?

mortfree wrote:
Sun Jun 02, 2019 7:44 pm
Dumb question:

What is the max TLH allowed in a tax year?
Max TLH is unlimited...
by The Wizard
Sun Jun 02, 2019 7:52 pm
Forum: Personal Investments
Topic: Maximum amount of Tax Loss Harvesting advisable per year?
Replies: 27
Views: 1501

Re: Maximum amount of Tax Loss Harvesting advisable per year?

Getting back to the OP's question, I plan to sell stock funds to buy a new car every so often.
So having $10-15k in capital losses would be a good idea in my case, for a $40k withdrawal.
Sadly, I don't think that will happen in two years...
:(
by The Wizard
Sat Jun 01, 2019 3:40 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 11008
Views: 1918672

Re: U.S. stocks in free fall

That depends on how much money and how long. In my case, I'm dealing with <1% of portfolio value on the first of each month. And the goal is to get that excess cash invested in my taxable account on a good buying day during the month. Simple... Unless you can travel in the past, or you can see the ...
by The Wizard
Sat Jun 01, 2019 3:32 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 11008
Views: 1918672

Re: U.S. stocks in free fall

lostdog wrote:
Fri May 31, 2019 8:22 pm

"The three fund portfolio is like a suit from Sears".

LMAO
Bankerton has his moments, yes...
by The Wizard
Sat Jun 01, 2019 8:51 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 11008
Views: 1918672

Re: U.S. stocks in free fall

...If you have money to buy when there is a sale, you should have already had that money in the market. You shouldn't hold money around to buy when there is a sale. Time in the market, not timing the market. That depends on how much money and how long. In my case, I'm dealing with <1% of portfolio ...
by The Wizard
Sat Jun 01, 2019 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Required Minimum Distributions
Replies: 57
Views: 4564

Re: Required Minimum Distributions

I'm not sure there's a "best" way, but a really good way is to take twelve monthly payments on the early side of each month. Prior to turning age 70, how did you do it? I've been doing monthly withdrawals from tax-deferred since retiring at age 63. A portion of each monthly withdrawal has been an on...
by The Wizard
Sat Jun 01, 2019 7:58 am
Forum: Investing - Theory, News & General
Topic: Best day of the month to invest?
Replies: 41
Views: 4459

Re: Best day of the month to invest?

A similar logic applies to the related question: Is there a best day to Tax Loss Harvest during the year?

Again, we can't plan it in advance, but have to take it as it comes...
by The Wizard
Sat Jun 01, 2019 7:34 am
Forum: Investing - Theory, News & General
Topic: Best day of the month to invest?
Replies: 41
Views: 4459

Re: Best day of the month to invest?

Expanding on my earlier reply, the best day of the month to invest is not known in advance. As the month progresses, there will be better days and worse days to put new money in the market. It's a judgement call for sure and if using mutual funds, 3:45 ET is a good time to make it. Once you decide o...
by The Wizard
Fri May 31, 2019 8:01 pm
Forum: Personal Investments
Topic: Delay Social Security?
Replies: 35
Views: 3341

Re: Delay Social Security?

People are not reading/answering the OP's question.
The question is: When does it NOT make sense to delay SS?
by The Wizard
Fri May 31, 2019 7:57 pm
Forum: Personal Investments
Topic: Retirement Withdrawal Strategy Optimization - Estimating Retirement Tax
Replies: 8
Views: 1035

Re: Retirement Withdrawal Strategy Optimization - Estimating Retirement Tax

I think one standard optimization is to manage your yearly income so that capital gains + dividends + Roth IRA conversion - tax deductions = top of 12% tax bracket... I don't think that's going to work for those of us who have been in the 28% and now the 24% tax bracket since start of retirement. F...
by The Wizard
Fri May 31, 2019 7:05 pm
Forum: Personal Investments
Topic: Delay Social Security?
Replies: 35
Views: 3341

Re: Delay Social Security?

That's money I could be investing or using to reduce my withdrawals from higher taxed 401k savings. Don't forget you'll be required to take RMDs from the 401k. So one often recommended plan is to spend down your 401k a bit (if needed) while delaying SS and prior to beginning RMDs. Actually, a combo...
by The Wizard
Fri May 31, 2019 6:54 pm
Forum: Personal Investments
Topic: Delay Social Security?
Replies: 35
Views: 3341

Re: Delay Social Security?

Don't delay if you have a serious illness.
And don't delay if you have very modest savings...
by The Wizard
Fri May 31, 2019 6:38 pm
Forum: Investing - Theory, News & General
Topic: Best day of the month to invest?
Replies: 41
Views: 4459

Re: Best day of the month to invest?

I like to invest after a drop of 1% or more, around 3:45 pm on that day...
by The Wizard
Fri May 31, 2019 4:19 pm
Forum: Personal Consumer Issues
Topic: Tequila and Magaritas
Replies: 122
Views: 13797

Re: Tequila and Magaritas

Cointreau is a tad pricey for what it does. I squeeze a bunch of lime slices into a glass to start with. Then a half jigger of fine triple sec. Then just under two jiggers of fine reposado tequila, 2-1/2 oz basically. I've had good luck with Cazadores and Espolon tequilas as a result of this thread...
by The Wizard
Fri May 31, 2019 7:42 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 23
Views: 1501

Re: Retirement plan [Pension lump sum or annuity?]

It's good to have a mix of annuity/pension income + portfolio withdrawal income in retirement. You need to run some comparison numbers on immediate annuities dot com to see how good your annuity payout is for that lump sum. And then figure what the eventual survivor situation will be. Probably best ...
by The Wizard
Thu May 30, 2019 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Unexpected income in Q2 and estimated tax q
Replies: 5
Views: 624

Re: Unexpected income in Q2 and estimated tax q

Make a big estimated tax payment for Q2.
File form 2210 next spring to explain the details.
You'll be fine...
by The Wizard
Thu May 30, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Older retirees: Are your expenses lower now than in early retirement?
Replies: 49
Views: 6220

Re: Older retirees: Do you have lower expenses now than you did in early retirement?

I'm just 69, going into year seven of retirement which started in early 2013. I annuitized a good chunk of tax-deferred 403(b) accumulation with TIAA back in 2013, but mostly in commercial real estate (TREA) and lesser in broad stock market (CREF Stock) accounts. I had maybe 20% in TIAA Traditional ...
by The Wizard
Thu May 30, 2019 7:39 pm
Forum: Personal Investments
Topic: Retired Thinking Thru Conversion Strategy
Replies: 10
Views: 1346

Re: Retired Thinking Thru Conversion Strategy

There are a lot of forum discussions on Roth conversion strategy that might be helpful to read. I’m personally not a fan of “to the top of the X% bracket” approach as there are a lot of discontinuities in the tax code (eg IRMAA tiers) as well as way too many variables. Here’s one recent discussion ...
by The Wizard
Thu May 30, 2019 1:59 pm
Forum: Personal Investments
Topic: Account pension as part of bond allocation
Replies: 16
Views: 822

Re: Account pension as part of bond allocation

Also, in some cases, total retirement income streams for a person may exceed their desired income level most months, meaning that portfolio withdrawals are not needed for routine expenses. In this happy situation, the portfolio AA can be whatever you want. But thirty years in advance is way too long...
by The Wizard
Thu May 30, 2019 1:51 pm
Forum: Personal Investments
Topic: Account pension as part of bond allocation
Replies: 16
Views: 822

Re: Account pension as part of bond allocation

Assets and income streams should be considered separately, although one can be physically converted into the other. So when the time comes, you have a pension income stream of say $5000 per month and then a few years later a SS income stream of say $4000 per month. You'll need to figure what your De...
by The Wizard
Thu May 30, 2019 6:24 am
Forum: Investing - Theory, News & General
Topic: Are people buying VTI today or waiting for a bigger drop in June
Replies: 30
Views: 3552

Re: Are people buying VTI today or waiting for a bigger drop in June

I did some complex calculations with the data and came up with some interesting statistics about what people were doing with VTI today... Of the people who decided to transact in VTI on this trading day, 50% were buying, to take advantage of the obviously temporary dip. But, interestingly, the othe...
by The Wizard
Wed May 29, 2019 4:47 pm
Forum: Personal Investments
Topic: Should I move my Vanguard Roth IRA to TIAA?
Replies: 16
Views: 1420

Re: Should I move my Vanguard Roth IRA to TIAA?

I think I'll hang tight with Vanguard for now. I wish I'd never started with TIAA, but it is what it is... You're in a good situation. You have access to Trad and TREA, which are unique products. And TIAA has arguably the best immediate annuities available when it comes time to retire with a hefty ...
by The Wizard
Wed May 29, 2019 4:40 pm
Forum: Personal Investments
Topic: Should I move my Vanguard Roth IRA to TIAA?
Replies: 16
Views: 1420

Re: Should I move my Vanguard Roth IRA to TIAA?

No, I wouldn't do it.
I have two Roth IRAs, my main one at Vanguard with a few stock funds, and a smaller one at TIAA with just TREA in it.

TIAA charges its highest expense ratio for funds in an IRA, with the exception of TREA...
by The Wizard
Wed May 29, 2019 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Fun paid jobs after FIRE
Replies: 171
Views: 14873

Re: Fun paid jobs after FIRE

IowaFarmWife wrote:
Wed May 29, 2019 3:30 pm
Substitute teacher in your local school district?
Substitutes don't get paid nearly as much per day as the regular ones, assuming you're qualified to teach geometry or whatever...
by The Wizard
Tue May 28, 2019 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 106
Views: 14322

Re: Putting off Social Security until 70

70 seems like a good idea.
I retired at age 63 in 2013.
Age 70 SS starts in 10 months.
Three cheers for late SS...
by The Wizard
Mon May 27, 2019 4:34 pm
Forum: Investing - Theory, News & General
Topic: How to retire early by targeting a low/zero balance at the end of life?
Replies: 48
Views: 5280

Re: How to retire early by targeting a low/zero balance at the end of life?

...In the past, Vanguard has recommended that retirees use no more than about 20% of their portfolio to buy an annuity. Good for Vanguard, but I don't agree. Annuitization amounts should be based more on your Basic Expenses. If they are $60k per year, then annuitize enough to get to that, SS includ...
by The Wizard
Mon May 27, 2019 4:23 pm
Forum: Investing - Theory, News & General
Topic: How to retire early by targeting a low/zero balance at the end of life?
Replies: 48
Views: 5280

Re: How to retire early by targeting a low/zero balance at the end of life?

If you definitely want to be broke at the end of your life, there is only method that doesn't involve suicide which I'm aware of: place all of your assets into a lifetime annuity... Look Actually, there's more to it than that. You need to SPEND all that income each year, not reinvest any of it in y...
by The Wizard
Mon May 27, 2019 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Troubling Delay in Retirement Processing
Replies: 8
Views: 897

Re: Troubling Delay in Retirement Processing

Just curious: to your knowledge, is that city in financial difficulty?