Search found 11853 matches

by The Wizard
Sat Aug 18, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

Why would you not convert? You are no worse off in a Roth, are you? Best case you have some remaining basis to carry forward. Worst case is you come out the same, no income or loss on either the non deductible or Roth as long as the ND remains below basis. You make a good argument. I should restate...
by The Wizard
Sat Aug 18, 2018 12:02 pm
Forum: Investing - Theory, News & General
Topic: Capital Gains on an Index Fund
Replies: 25
Views: 1167

Re: Capital Gains on an Index Fund

...Then how do Bogleheads re-balance every quarter if they potentially are looking at STCG hits by adjusting less than a year? So even though the underlying stocks were held by Vanguard for 5 years, if I buy & sell the index fund within 12 months...all gains are STCG!? It may have been said already...
by The Wizard
Sat Aug 18, 2018 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Edward Jones rep door knocking
Replies: 36
Views: 2673

Re: Edward Jones rep door knocking

dknightd wrote:
Sat Aug 18, 2018 10:40 am
door to door. Strange
It's a neighborly thing, see?
by The Wizard
Sat Aug 18, 2018 11:12 am
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

In my example above, there was simply a capital loss for which no benefit could be obtained. Some people think this way. I don't happen to be one of them. I'm one of the ones who believes that basis can be carried over for future use even if the IRA is empty. No. There's no basis remaining after 10...
by The Wizard
Sat Aug 18, 2018 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate per month???
Replies: 63
Views: 4681

Re: Savings rate per month???

...Its my understanding that the employer’s match isn’t isn’t considered a part of one’s gross income (w-2). Another reason not to include the match as if one is really doing anything to improve their savings rate. They’re not. My own 403(b) contributions were pre-tax and not on my W-2 either. So f...
by The Wizard
Sat Aug 18, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate per month???
Replies: 63
Views: 4681

Re: Savings rate per month???

... But if you have a 10% employer match how can you ignore that in your saving denominator. If you make 100k with 10k match you can spend 60k, save 40+10 and ‘save 50%’? For sake of comparison makes more sense to say you save 50/110 or 45% of total compensation... Correct. Your latter computation ...
by The Wizard
Sat Aug 18, 2018 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate per month???
Replies: 63
Views: 4681

Re: Savings rate per month???

...Never understood why people include an employer’s 401(k) match. The match is gravy; it wasn’t taken out of your paycheck. It sort of is, in that we have a choice in staying with an employer with a decently high "match" contribution or going to one with higher straight salary and no or little mat...
by The Wizard
Sat Aug 18, 2018 9:16 am
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

On Form 8606, basis is listed on line 14. Can anyone, with or without software, figure out how to generate a negative number on that line? Good point. I'm not sure "negative basis" is proper terminology. In my example above, there was simply a capital loss for which no benefit could be obtained. No...
by The Wizard
Sat Aug 18, 2018 8:49 am
Forum: Investing - Help with Personal Investments
Topic: Automatic Investment in a Taxable Account
Replies: 20
Views: 1660

Re: Automatic Investment in a Taxable Account

1- I would not do automatic taxable investing. Otherwise how will you TLH? Right. You especially want to turn off automatic reinvestment of dividends. In my case, automatic investment of new money into my taxable account isn't a good idea either, since my monthly expenditures vary widely due to exc...
by The Wizard
Sat Aug 18, 2018 8:32 am
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

I didn't think it's possible to have negative basis in an IRA. It's interesting that we have two kinds of posts: half of Bogleheads say making non-deducible contributions and dealing with form 8606 is a like having your wisdom teeth removed every year - a curse you pass down to future generations. ...
by The Wizard
Sat Aug 18, 2018 4:36 am
Forum: Personal Finance (Not Investing)
Topic: Has anyone used Income Strategy website/software?
Replies: 12
Views: 1337

Re: Has anyone used Income Strategy website/software?

...I still plan to follow the guidance of the software to convert all my tax-deferred accounts to Roth in time to eliminate age 70 RMD's when they would come into play. I think it's a suboptimal idea, generally, to convert all of a substantial tax deferred portfolio to Roth by age 70. You'll pay a ...
by The Wizard
Sat Aug 18, 2018 3:42 am
Forum: Personal Finance (Not Investing)
Topic: Is this a good resource for SS or is there something better
Replies: 9
Views: 801

Re: Is this a good resource for SS or is there something better

With the change in deemed filing rules two years ago, claiming strategies for couples has been greatly simplified...
by The Wizard
Sat Aug 18, 2018 3:05 am
Forum: Investing - Help with Personal Investments
Topic: Automatic Investment in a Taxable Account
Replies: 20
Views: 1660

Re: Automatic Investment in a Taxable Account

Amy2017 wrote:
Fri Aug 17, 2018 10:27 pm
Yes. I am talking about index ETL and mutual fund here. So you are correct.
What is an ETL?
by The Wizard
Fri Aug 17, 2018 8:22 am
Forum: Investing - Help with Personal Investments
Topic: RMD question, having two IRA's
Replies: 6
Views: 512

Re: RMD question, having two IRA's

Also, you need to complete your entire RMD each year before doing any Roth conversions.
Having said that, the best time for doing Roth conversions is before age 70.
I plan to quit doing them after I turn 70 and start both SS and RMDs...
by The Wizard
Fri Aug 17, 2018 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Do we really need to save 20 % ?
Replies: 28
Views: 2674

Re: Do we really need to save 20 % ?

It really depends on the loan rate, but I tend to agree with your wife. I would however prioritize any tax deferred investing opportunities you may have. As to 20% savings, it really depends. The less you save the longer you will have to work. I think he means 20% down payment on the house. You'll ...
by The Wizard
Fri Aug 17, 2018 6:10 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate per month???
Replies: 63
Views: 4681

Re: Savings rate per month???

Back when I was working full-time, savings rate was around 35% of gross, including employer contribution to my 403(b).

Now that I'm retired, savings rate from excess retirement income is around 10% over the year, varying month to month due to travel expenses.
That 10% excludes Roth conversions...
by The Wizard
Fri Aug 17, 2018 4:51 am
Forum: Investing - Help with Personal Investments
Topic: Question/Update on my Situation
Replies: 15
Views: 1719

Re: Question/Update on my Situation

With the significant income from the taxable (assuming $7800 monthly) most of that should be untaxed. This potentially allows large Roth conversions depending on what else is going on with your finances. In that case you might slow down/minimize the inherited IRA distributions to support the conver...
by The Wizard
Fri Aug 17, 2018 4:44 am
Forum: Investing - Help with Personal Investments
Topic: Question/Update on my Situation
Replies: 15
Views: 1719

Re: Question/Update on my Situation

celia wrote:
Thu Aug 16, 2018 10:11 pm
Do you realize that if you don't start withdrawing from the tIRA (for living expenses) or do Roth conversions, $3M at age 70.5 means you will have RMDs of $195K a year...
This math is wrong
RMDs start at 3.65% and go up from there.
So a bit less than $120k the first years...
by The Wizard
Fri Aug 17, 2018 4:29 am
Forum: Investing - Theory, News & General
Topic: How to Underperform the Market
Replies: 45
Views: 3904

Re: How to Underperform the Market

All of my stock funds get market returns, by definition. I never "go to cash" therefore I get market returns. But what about rebalancing? International stocks have underperformed in recent months. So maybe I move $20k from US stocks to international. Does that action improve or worsen my return rela...
by The Wizard
Thu Aug 16, 2018 5:20 pm
Forum: Personal Consumer Issues
Topic: Lock Suitcases on International Flight or Not?
Replies: 24
Views: 1523

Re: Lock Suitcases on International Flight or Not?

Nobody locks checked luggage on any flight.
Worry about something important...
by The Wizard
Thu Aug 16, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Pension Rollover to TIRA, does it affect backdoor ROTH?
Replies: 5
Views: 251

Re: Pension Rollover to TIRA, does it affect backdoor ROTH?

Correct, you may be done with backdoor Roths for good if you do that.
If you have a 401(k) or 403(b) from a former employer, you may be able to roll the tIRA into that, thus clearing the deck for future backdoor Roth contributions. That's what I did...
by The Wizard
Thu Aug 16, 2018 2:16 pm
Forum: Investing - Theory, News & General
Topic: Fidelity 401(k) millionaires hits record high
Replies: 47
Views: 4680

Re: Fidelity 401(k) millionaires hits record high

Irisheyes wrote:
Thu Aug 16, 2018 1:49 pm
I am quite surprised at how relatively few Fido 401 (k) millionaires there are. I wonder how Vanguard or TIAA figures compare...
TIAA is undoubtedly higher due to the much larger employer contributions in many 403(b) plans. My employer contributed 10% of my salary...
by The Wizard
Thu Aug 16, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Barclay Card with American Airlines
Replies: 7
Views: 319

Re: Barclay Card with American Airlines

I have one but I don't think it's No Foreign Transaction fee.
So I use my Capital One card outside the US.
They both have chips but no PIN by default.
So I had to use my ATM card (which does have a PIN) to buy a pass for the vaporettos in Venice earlier this month...
by The Wizard
Thu Aug 16, 2018 11:08 am
Forum: Personal Consumer Issues
Topic: Solutions for Printing from a Chromebook
Replies: 16
Views: 1211

Re: Solutions for Printing from a Chromebook

I print from my Google smartphone to two different Brother printers (at my place and at the GF's place) using WiFi. Setting up the printer to use wifi isn't too hard; they give you instructions. Note: direct wifi is different from cloud printing. Only problem I've had is sometimes the printer is slo...
by The Wizard
Thu Aug 16, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 45
Views: 3298

Re: High tax bracket - Go 100% Roth in tax advantaged?

$120k per year going into your 403(b) pre-tax is double the max allowable, so you might want to check that...
by The Wizard
Thu Aug 16, 2018 8:26 am
Forum: Personal Consumer Issues
Topic: Celebrating the day you retired
Replies: 46
Views: 2797

Re: Celebrating the day you retired

Friday, March 8, 2013 was my last day after a few decades of work. It was more sad than celebratory, I think. Part of the month prior I spent throwing out junk in my office, taking home personal stuff and dropping in on certain co-workers late afternoons to tell them I'm leaving. The following Monda...
by The Wizard
Tue Aug 14, 2018 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Inflation adjusted annuity
Replies: 26
Views: 1522

Re: Inflation adjusted annuity

...As for me, I have annuity income from TIAA Traditional (approximately fixed from year to year), but also variable annuity income based on commercial real estate (TREA) and the broad stock market (CREF Stock). Both of the latter tend to increase over time, possibly beating inflation. But I take t...
by The Wizard
Tue Aug 14, 2018 6:09 am
Forum: Investing - Help with Personal Investments
Topic: Help explain TIAA Traditional to me
Replies: 20
Views: 1404

Re: Help explain TIAA Traditional to me

I hold no bond funds anymore. The bulk of my investments are with TIAA where I hold both flavors of Trad: 9-year restricted Trad paying 4.0% for new money and unrestricted Trad paying 3.25% for new money.
I will obviously use the latter for rebalancing if the need arises...
by The Wizard
Mon Aug 13, 2018 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Inflation adjusted annuity
Replies: 26
Views: 1522

Re: Inflation adjusted annuity

Regardless of BobK's recommendation, I would avoid true inflation adjusted annuities. An insurance company takes a LOT of risk with a product like that and the price to the annuitant will be unreasonably high. Something like the Fidelity 2% annual increment or the TIAA graded payment avoids risk of ...
by The Wizard
Mon Aug 13, 2018 7:24 am
Forum: Investing - Theory, News & General
Topic: How can I use the Rising Equity Glide Path?
Replies: 61
Views: 3606

Re: How can I use the Rising Equity Glide Path?

... I'm just curious if anyone knows of some more varied comparisons, suggesting different lengths of "dip" for early retirement. I'll give you my personal experience. I retired at 63 in 2013 and kept my AA at 50% stocks for the first few years to guard against Sequence of Return risk, meaning a na...
by The Wizard
Mon Aug 13, 2018 4:23 am
Forum: Personal Consumer Issues
Topic: Liability only car insurance and my car destroyed
Replies: 15
Views: 2584

Re: Liability only car insurance and my car destroyed

Liability only car insurance and my car destroyed How it works and my insurance company doesn't pay anything to me You haven't provided enough information for anyone to help you. Was your car destroyed in an accident or via some other means? If an accident, was there another vehicle involved? If an...
by The Wizard
Mon Aug 13, 2018 12:10 am
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2419

Re: RMD's: take distributions vs selling

...Money in IRA is completely fungible and investments can get bought and sold with no tax ramifications. Money in your IRA is not "fungible". What's fungible is: my monthly SS amount and monthly RMD amount starting in 2020 are expected to be comparable in size (SS several hundred $$ larger). So ma...
by The Wizard
Sun Aug 12, 2018 11:55 pm
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2419

Re: RMD's: take distributions vs selling

ryman554 wrote:
Sun Aug 12, 2018 5:33 pm
...The point is, nobody should ever be forced to sell low when doing RMD, regardless of account...
Why not?
Let's say stocks drop 20% or 30%.
So you sell low in your tax deferred account and almost simultaneously buy similar funds in your taxable account.
I don't see a problem...
by The Wizard
Sun Aug 12, 2018 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2419

Re: RMD's: take distributions vs selling

People here make RMDs waaaay too complicated. I've been withdrawing/Roth-converting a few thousand a month from tax deferred since 2013 in lieu of claiming personal SS. I've been doing pro rata withdrawals from my allocation of 55% to 60% stock funds. I hold no cash or MM funds whatsoever in tax def...
by The Wizard
Sun Aug 12, 2018 10:40 am
Forum: Personal Consumer Issues
Topic: reliable online public forum
Replies: 24
Views: 2046

Re: reliable online public forum

The only reliable source is an official source. O.k., even an official source can be incorrect at times, but that's about as reliable as one can hope for... In a related frame of mind, I find that targeted forums work better for some things. Two examples that I've used: Avsforum.com for audio visua...
by The Wizard
Sun Aug 12, 2018 10:25 am
Forum: Personal Finance (Not Investing)
Topic: how much car can we afford?
Replies: 128
Views: 5621

Re: how much car can we afford?

really, you dont even say what you are looking at? why is this a serious question? you can afford a used Civic. I'm looking at a BMW 3 series certified pre owned about 40k with 8k miles on it Buying that car means that you will not be able to afford other things that you might want. "Will" is a rat...
by The Wizard
Sun Aug 12, 2018 10:20 am
Forum: Personal Finance (Not Investing)
Topic: how much car can we afford?
Replies: 128
Views: 5621

Re: how much car can we afford?

We, meaning a couple, should probably have two cars, with staggered purchase dates. Maybe every four years buy new and keep for eight years. Depends on how many miles per year you drive. Allocate up to 10% of income for car purchase, so $30/year x four years equals $120k in cash to buy the next new ...
by The Wizard
Sun Aug 12, 2018 6:35 am
Forum: Personal Finance (Not Investing)
Topic: Financial Advisor Mandatory?
Replies: 36
Views: 3100

Re: Financial Advisor Mandatory?

Would be nice if the OP would com back and see if there were any answers to his question...
:)
by The Wizard
Sun Aug 12, 2018 4:30 am
Forum: Personal Consumer Issues
Topic: reliable online public forum
Replies: 24
Views: 2046

Re: reliable online public forum

hello BH Which one is the most reliable, trustworthy, reputable online public forum on a general wide variety of issues, such as, health, retirement, living, business, medical, divorce, and family so on? best wishes You've come to the right place. Also suggestions on roofing, emergency home power s...
by The Wizard
Fri Aug 10, 2018 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: SS 2019 COLA could be close to 3%
Replies: 26
Views: 2745

Re: SS 2019 COLA could be close to 3%

The August CPI figures were released today. The 3 month average CPI-W (June July August) is 246.429 . Thats 3.1 % greater then the same period last year and 2.8 % greater than the reference period last year ( Aug Sept Oct) which is used to determine the SS COLA. There are two months to go but the C...
by The Wizard
Fri Aug 10, 2018 5:33 am
Forum: Investing - Help with Personal Investments
Topic: capital loss from stock
Replies: 2
Views: 252

Re: capital loss from stock

Loss is for the year incurred...
by The Wizard
Fri Aug 10, 2018 4:04 am
Forum: Investing - Help with Personal Investments
Topic: Old dog needs to learn to manage his investments
Replies: 60
Views: 5080

Re: Old dog needs to learn to manage his investments

Benchie wrote:
Fri Aug 10, 2018 3:00 am
It’s all IRA money, SIMPLE, Roth and traditional.
Excellent, so no tax consequences to moving all to a low cost provider next week.
Muy bien, molto bene...
by The Wizard
Fri Aug 10, 2018 1:33 am
Forum: Investing - Help with Personal Investments
Topic: Best choice with oppenheimer
Replies: 8
Views: 511

Re: Best choice with oppenheimer

anonenigma wrote:
Fri Aug 10, 2018 1:27 am
Why is the money stuck at Oppenheimer if it's from a former employer?
OP did not say "former"...
by The Wizard
Thu Aug 09, 2018 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Biggest Threats to Financial Well-Being
Replies: 99
Views: 8938

Re: Biggest Threats to Financial Well-Being

Divorce isn't necessarily that bad. Your per capita net worth doesn't necessarily change that much. Assuming your own employment prospects are decent, things will likely work out fine. Ask me how I know... Maybe it wasn't that bad for you. I walked down the aisle the first time at age 26 with a net...
by The Wizard
Thu Aug 09, 2018 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: keep cash in after-tax for bridge to Social Security ?
Replies: 32
Views: 2715

Re: keep cash in after-tax for bridge to Social Security ?

...The thing I don't like about your plan is that instead of doing withdrawals from your TIAA account, you could be doing Roth conversions (technically those are "taxable rollovers", not "Roth conversions", since the TIAA account is not a TIRA, but it's pretty much the same thing). Thereby reducing...
by The Wizard
Thu Aug 09, 2018 6:41 am
Forum: Personal Finance (Not Investing)
Topic: Biggest Threats to Financial Well-Being
Replies: 99
Views: 8938

Re: Biggest Threats to Financial Well-Being

Divorce isn't necessarily that bad.
Your per capita net worth doesn't necessarily change that much.
Assuming your own employment prospects are decent, things will likely work out fine.
Ask me how I know...
by The Wizard
Wed Aug 08, 2018 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Comfort level with Credit Card Balance
Replies: 86
Views: 5279

Re: Comfort level with Credit Card Balance

Just wondering what's everyone's comfort level is with their credit card balance. Zero comfort level. Any outstanding balance at all on any of my credit cards makes me itch. I check the card balances daily, and pay them off two to three times a week. Excessive, perhaps, but that's just me. Two to t...
by The Wizard
Wed Aug 08, 2018 6:23 am
Forum: Investing - Help with Personal Investments
Topic: Options to invest $80,000 now, but might need to access some of it periodically when I retire in 3-5 years
Replies: 7
Views: 993

Re: Options to invest $80,000 now, but might need to access some of it periodically when I retire in 3-5 years

You need to open what we call a taxable investment account with Vanguard or Fidelity, for instance.
Then decide the mix of investments you want to hold, probably mostly in a stock index fund.
A bit of homework might be helpful first, here on the forum...
by The Wizard
Wed Aug 08, 2018 4:56 am
Forum: Personal Finance (Not Investing)
Topic: Comfort level with Credit Card Balance
Replies: 86
Views: 5279

Re: Comfort level with Credit Card Balance

Earl Lemongrab wrote:
Tue Aug 07, 2018 11:43 pm
indexonlyplease wrote:
Tue Aug 07, 2018 7:42 pm
+1 pay off the credit card each month. It does not matter if the interest is 0% or 20%.
I don't see any point in that. I have better things to do with the money.
More power to you then...
by The Wizard
Wed Aug 08, 2018 4:36 am
Forum: Investing - Help with Personal Investments
Topic: Clean up on Aisle 4 (help me clean up this mess)
Replies: 15
Views: 2572

Re: Clean up on Isle 4 (help me clean up this mess)

Quick reply without a lot of detail: Decide on your desired AA (stocks/bonds) along with domestic/international split in stocks. Decide which custodian you prefer: Fidelity, Vanguard, or Schwab. Do a rollover of each of your IRAs into the three or four funds you've chosen at your new provider. Do th...