Search found 11057 matches

by The Wizard
Thu Jan 18, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Which tax year does a Roth conversion fall under?
Replies: 6
Views: 350

Re: Which tax year does a Roth conversion fall under?

joo2lo wrote:
Thu Jan 18, 2018 8:19 pm
So I am assuming that one would have to calculate the amount of taxable income they are withdrawing from their other retirement accounts towards the end of the year to estimate how much they can convert in order avoid the higher tax brackets?
Basically, yes...
by The Wizard
Thu Jan 18, 2018 5:03 am
Forum: Investing - Theory, News & General
Topic: [n X expenses + r] instead of [n X expenses]
Replies: 27
Views: 1015

Re: [n X expenses + r] instead of [n X expenses]

I prefer to focus on a Desired Retirement Income and leave it at that. My Desired Retirement Income exceeds my Expenses by a fair amount, yes. My actual retirement income does also. Conversely, this approach allows me to grow my expenses in retirement, such as the spur of the moment hiking trip to A...
by The Wizard
Thu Jan 18, 2018 4:31 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Question
Replies: 8
Views: 679

Re: Backdoor Roth IRA Question

If you have the funds available, you can contribute $11,000 combined for 2017 + 2018 right now (prior to April 15) on the same day. Then convert the combined total the following day, which might be $11,021 or similar if there was a small uptick in the market on day one. If you open IRA accounts at V...
by The Wizard
Thu Jan 18, 2018 4:18 am
Forum: Personal Finance (Not Investing)
Topic: 1,000th post and a 'No-Fail' Retirement Formula
Replies: 41
Views: 3262

Re: 1,000th post and a 'No-Fail' Retirement Formula

And I still prefer to model retirement cashflow streams with a spreadsheet that shows the variation year to year.
Typical example: retire at 65 but postpone SS until 70. So withdraw more from portfolio first five years, possibly with Roth conversions. Then withdraw less once SS starts...
by The Wizard
Thu Jan 18, 2018 4:13 am
Forum: Personal Finance (Not Investing)
Topic: 1,000th post and a 'No-Fail' Retirement Formula
Replies: 41
Views: 3262

Re: 1,000th post and a 'No-Fail' Retirement Formula

I would delete the Xn term from right side of the equation.
If I have 5 years remaining until retirement, I'll fund those expenses from employment income, not from portfolio...
by The Wizard
Wed Jan 17, 2018 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: What will happen if everyone indexed?
Replies: 17
Views: 1540

Re: What will happen if everyone indexed?

We'll all be rich after a few decades?
by The Wizard
Wed Jan 17, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 141
Views: 8634

Re: Stats on When People Take Social Security

I have no input on how young people should plan on far off SS as that is political speculation . I would observe that all retirement planning is an exercise is successive approximation as time goes on. We agree. It's unfortunate that many base this decision, even those who are 62 and older, on thei...
by The Wizard
Wed Jan 17, 2018 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 141
Views: 8634

Re: Stats on When People Take Social Security

While I’ve read the reasoning on here many times, I’ve never believed that delaying was a core Boglehead philosophy. It may make good sense for a lot of people, but I don’t put it the same group as LBYM, stay the course or low cost index funds. When did delaying SS make you a BH? I would say it's a...
by The Wizard
Wed Jan 17, 2018 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Is a Stable Value fund just a Variable Annuity?
Replies: 25
Views: 1449

Re: Is a Stable Value fund just a Variable Annuity?

I should mention, as regards terminology, that while TIAA Traditional is inescapably labelled as an annuity, it really can be thought of and used as a tax deferred savings account. There are no sneaky fees. In retirement, withdrawals can be done in a few different ways, possibly with restrictions. I...
by The Wizard
Wed Jan 17, 2018 7:56 am
Forum: Investing - Help with Personal Investments
Topic: Is a Stable Value fund just a Variable Annuity?
Replies: 25
Views: 1449

Re: Is a Stable Value fund just a Variable Annuity?

I have TIAA Traditional accumulations of both types: restricted paying 4.0% and unrestricted paying 3.25% for new contributions. They don't refer to Trad as a Stable Value fund, but it effectively is. I also have annuitized Trad paying me lifetime monthly income, very similar to an SPIA. But we Trad...
by The Wizard
Tue Jan 16, 2018 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 141
Views: 8634

Re: Stats on When People Take Social Security

Yes I meant the restricted app for spousal benefits which we just applied for a couple months ago.Even though we are taking advantage of it and it will actually help us out some,I am glad they are phasing it out. That's what I'm taking also, but Divorced Spouse. And I'm not glad they are phasing it...
by The Wizard
Tue Jan 16, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Quick Roth Conversion Question
Replies: 4
Views: 262

Re: Quick Roth Conversion Question

Those Roth conversions will benefit you financially after age 70.
Fire up a spreadsheet and do them...
by The Wizard
Tue Jan 16, 2018 7:05 pm
Forum: Investing - Theory, News & General
Topic: Is lump sum or dollar cost averaging more in line with boglehead values?
Replies: 22
Views: 1464

Re: Is lump sum or dollar cost averaging more in line with boglehead values?

. . . it seems like one is taking higher risk in this scenario. Of course. Why the bleep :happy are you putting that money in the market if it isn't to take the risk? This illustrates how questions about DCA are really questions about the asset allocation -- how much risk one is deciding to take. A...
by The Wizard
Tue Jan 16, 2018 7:03 pm
Forum: Investing - Theory, News & General
Topic: Is lump sum or dollar cost averaging more in line with boglehead values?
Replies: 22
Views: 1464

Re: Is lump sum or dollar cost averaging more in line with boglehead values?

Lump sum investing is the way to go for irregular lump sums that appear separately from regular employment income...
by The Wizard
Tue Jan 16, 2018 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 141
Views: 8634

Re: Stats on When People Take Social Security

What I do not understand is why they allow file and suspend.They are running out of money but they choose to give free money to probably mostly wealthier people who use it for play money. People such as myself, yes. That's why the law got changed to force deemed filing for everyone after a transiti...
by The Wizard
Tue Jan 16, 2018 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 141
Views: 8634

Re: Stats on When People Take Social Security

...There is a reason for taking SS before 70 which is related to “the system will be broke by then”. IMO, people who use this related reason are not rationalizing. Unfortunately, the moderators have decided that this related reason cannot be discussed at Bogleheads. You may have that a bit backward...
by The Wizard
Tue Jan 16, 2018 8:31 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 87
Views: 10683

Re: IRS announces new withholding tables for 2018

All my income is from 1099-R and SSA- nowadays. Withholding allowances aren't applicable for me. So my plan is to redo my 2017 income tax computations using the new 2018 tax rules in a few weeks. I'll then have a personal dollar amount difference between the old tax law and the new one. From this, I...
by The Wizard
Mon Jan 15, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Our 'cure' for emergency expenses
Replies: 63
Views: 6860

Re: Our 'cure' for emergency expenses

Our "freedom fund" has always been part of our checking account. Why make it complicated? We never ended up with a year's worth of once-yearly expenses all in the checking account at once because they are all due in different months, give or take. Same here basically, as I think I mentioned upthrea...
by The Wizard
Mon Jan 15, 2018 2:41 am
Forum: Investing - Help with Personal Investments
Topic: how to figure out the assest allocation that you can sleep well with
Replies: 22
Views: 1843

Re: how to figure out the assest allocation that you can sleep well with

I don't see the OP's age and employment/retirement status. If you are more than a decade from retirement, 70% stocks is fine. Your portfolio's total value is EXPECTED to decline when the next stock market correction happens. Try to be accepting of that. If you want to reduce risk a bit, then go down...
by The Wizard
Sun Jan 14, 2018 10:10 am
Forum: Personal Consumer Issues
Topic: Looking for a reasonably priced, safe international destination
Replies: 105
Views: 5873

Re: Looking for a reasonably priced, safe international destination

Depends on whether you want a European or Caribbean flavored experience.
Ireland or The Netherlands are good for the former.
And most Caribbean islands are good, even if English isn't their first language...
by The Wizard
Sun Jan 14, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Revised
Replies: 15
Views: 982

Re: Asset Allocation Revised

Two question areas I have: First, what has your allocation to stocks been over the past few decades? I worry that if 35% is higher than you are comfortable with, that you will make the wrong move when the next Stock Market Crash happens. Second, where is your retirement income coming from and how de...
by The Wizard
Sat Jan 13, 2018 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Roth convert to just below IRMAA threshold?
Replies: 13
Views: 869

Re: Roth convert to just below IRMAA threshold?

I'm in a higher IRMAA tier and always will be with the present system. But I agree that one should keep an eye on projected MAGI each year to avoid being Just Above the next tier threshold due to Roth conversions a bit too big. Due to $30,000 of part-time income in 2016, I'm in an even higher IRMAA ...
by The Wizard
Sat Jan 13, 2018 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4274

Re: Budgeting Vs Savings Rate

I think budgeting is a personality thing, fine for some folks, not for others. The need for budgeting depends to some degree on one's native tendency to spend money just because it's there. If "shopping" is your idea of a fun recreational activity, then yeah, budgeting could be a good idea for your ...
by The Wizard
Sat Jan 13, 2018 3:11 pm
Forum: Investing - Theory, News & General
Topic: AA is much harder than I thought...
Replies: 32
Views: 3776

Re: AA is much harder than I thought...

Strive to get to 90/10 by the end of February...
by The Wizard
Sat Jan 13, 2018 9:32 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing Anxiety - Nearing Retirement, appreciate input
Replies: 7
Views: 1096

Re: Rebalancing Anxiety - Nearing Retirement, appreciate input

You look fine, lots of bonds. Too many for my tastes, actually.

I think we need to talk income streams now, along with withdrawal sequencing and Roth conversion plans prior to age 70...
by The Wizard
Sat Jan 13, 2018 8:30 am
Forum: Investing - Help with Personal Investments
Topic: How many years of fixed income for Sequence of Return Risk
Replies: 26
Views: 1941

Re: How many years of fixed income for Sequence of Return Risk

I have a 50/50 allocation. I'll have to fund 8 years before SS. Years of fixed income in portfolio is around 14 years. When SS income starts it will cover 1/2 to 2/3 of expenses. Similar to my case with seven years from retirement in 2013 to full SS in 2020. While I kept my AA steady for the first ...
by The Wizard
Sat Jan 13, 2018 5:30 am
Forum: Investing - Theory, News & General
Topic: Backdoor Roth with AGI within phase out limits
Replies: 9
Views: 750

Re: Backdoor Roth with AGI within phase out limits

There is essentially no cost for doing a backdoor Roth rather than a direct contribution. Thus, if you aren't sure whether you will be within the limits, you might as well go through the backdoor. Let's say MFJ folks does conversion of 2x$5,500 in to ROTH IRAs at the beginning of Year 2018 (I am as...
by The Wizard
Fri Jan 12, 2018 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Reasoning behind Backdoor Roth IRA
Replies: 11
Views: 685

Re: Reasoning behind Backdoor Roth IRA

One might also note that contributions to a tIRA are not allowed at age 70 or beyond, for people who still have earned income at that point. Direct contributions to a Roth IRA are allowed at any age, provided one has earned income with AGI less than the limit. This means that folks age 70 and beyond...
by The Wizard
Fri Jan 12, 2018 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Our 'cure' for emergency expenses
Replies: 63
Views: 6860

Re: Our 'cure' for emergency expenses

I don't see any emergency expenses in the OP's list. A true Emergency Fund is for loss of job or large medical bills. Most other irregular expenses should not be categorized as emergencies. I simply keep extra funds in my checking account to cover expenses, expected or unexpected. I keep $5000 to $1...
by The Wizard
Fri Jan 12, 2018 5:27 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth with AGI within phase out limits
Replies: 9
Views: 750

Re: Backdoor Roth with AGI within phase out limits

WhiteMaxima wrote:
Fri Jan 12, 2018 12:54 pm
Which tax form shall I use to file tax return?
Form 1040...
by The Wizard
Fri Jan 12, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Looking for Best Alternatives for VTMFX
Replies: 7
Views: 499

Re: Looking for Best Alternatives for VTMFX

VTMFX is the Vanguard tax managed balanced fund, if anyone wondered...
by The Wizard
Fri Jan 12, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: The Backdoor Roth IRA
Replies: 4
Views: 370

Re: The Backdoor Roth IRA

Yes, that it is. Typically the contribution to a traditional is non-deductible, so Form 8606 is involved. https://i.imgur.com/zLw22xO.png In reality, the "taxable event" should be no additional taxes if the non-deductible traditional IRA has no gains before conversion. Even if your tIRA contributio...
by The Wizard
Fri Jan 12, 2018 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Sequence of Return Risk impact on Retirement
Replies: 103
Views: 4159

Re: Sequence of Return Risk impact on Retirement

I prefer to discuss mitigation strategies for poor investment returns in retirement. Obviously, retiree #1 with sufficient income from SS, pensions, and payout-phase annuities is highly immune to SOR risk. His portfolio is strictly for discretionary purchases and the next generation. Retiree #2 fun...
by The Wizard
Thu Jan 11, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: How often should my AA adjust?
Replies: 17
Views: 980

Re: How often should my AA adjust?

Okay, okay, I'll bite... :D You'll note that many of us use a different AA algorithm than a linear increase in bonds with age, but that wasn't your question... What AA algorithm do you / others use? I want to avoid an algorithm based on then-prevailing feelings about the marketplace (since I don't ...
by The Wizard
Thu Jan 11, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: How often should my AA adjust?
Replies: 17
Views: 980

Re: How often should my AA adjust?

If you're going to have an AA modeled on age in bonds, then sure, tweak it every year. That makes it easy to keep track and you may be able to maintain your AA simply by adjusting where your contributions go. You'll note that many of us use a different AA algorithm than a linear increase in bonds wi...
by The Wizard
Thu Jan 11, 2018 7:09 am
Forum: Investing - Help with Personal Investments
Topic: Buy bonds until market correction
Replies: 28
Views: 2312

Re: Buy bonds until market correction

AlohaJoe, Wow. That is epic! Thanks Epic, yes, but way too many questions to be considered. Some folks will encounter Analysis Paralysis with this. Better, I think, is to have an all-weather AA that you simply live with, no questions with new money. Now what I said applies to new money on the order...
by The Wizard
Thu Jan 11, 2018 4:54 am
Forum: Personal Consumer Issues
Topic: Andoird device, Wifi cutting out when sleeping
Replies: 6
Views: 627

Re: Andoird device, Wifi cutting out when sleeping

Why is this a problem?
And how do you know what's happening? Are you using Fing on another device to see what IP addresses are assigned?

My Android smartphone reconnects to WiFi immediately upon turnon. Does your go blank for a while before reconnecting?
by The Wizard
Thu Jan 11, 2018 4:03 am
Forum: Investing - Help with Personal Investments
Topic: Buy bonds until market correction
Replies: 28
Views: 2312

Re: Buy bonds until market correction

AlohaJoe wrote:
Thu Jan 11, 2018 3:58 am
No, I wouldn't.
Ok, but all or nothing probably isn't the right approach.
If I came into an extra $10,000 this week, I'd likely put $6000 into stock funds and $4000 into bond-equivalent funds...
by The Wizard
Wed Jan 10, 2018 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: Sequence of Return Risk impact on Retirement
Replies: 103
Views: 4159

Re: Sequence of Return Risk impact on Retirement

No, the bond tent means raising the bond allocation as one approaches retirement then reducing it again after retirement. There are any number of choices of how far ahead to start, how for to go, and how fast to come back down. A single strategy that should clearly be adopted does not exist. Altern...
by The Wizard
Wed Jan 10, 2018 6:27 pm
Forum: Investing - Help with Personal Investments
Topic: Sequence of Return Risk impact on Retirement
Replies: 103
Views: 4159

Re: Sequence of Return Risk impact on Retirement

Folks, I know that there are several other methods/tools to mitigate the risk of SRR during retirement. I guess the question is whether raising equity allocation could be one of the tools. And, if the answer is yes, what would be the parameters used to set the AA? KlangFool I'm close to five comple...
by The Wizard
Wed Jan 10, 2018 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: Sequence of Return Risk impact on Retirement
Replies: 103
Views: 4159

Re: Sequence of Return Risk impact on Retirement

Multiple and diversified income streams. Why not use everything in the toolbox if one is able to? SS, Pension, SPIA, Portfolio, Rental Income, etc, etc, etc. j :D That's especially true for folks with Just Enough retirement savings who might otherwise need to maximize safe portfolio withdrawals. So...
by The Wizard
Wed Jan 10, 2018 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Sequence of Return Risk impact on Retirement
Replies: 103
Views: 4159

Re: Sequence of Return Risk impact on Retirement

I prefer to discuss mitigation strategies for poor investment returns in retirement. Obviously, retiree #1 with sufficient income from SS, pensions, and payout-phase annuities is highly immune to SOR risk. His portfolio is strictly for discretionary purchases and the next generation. Retiree #2 fund...
by The Wizard
Mon Jan 08, 2018 11:42 am
Forum: Forum Issues and Administration
Topic: Help me understand question-less financial status (e.g. "2 comma club") threads.
Replies: 175
Views: 8451

Re: Help me understand question-less financial status (e.g. "2 comma club") threads.

Most of the Milestone threads, whether having achieved $1,000,000 or a similar round number, are basically progress reports. They can be actionable/inspirational to others with a bit of history on how the OP got to that's point: starting employment X years ago, finally maxing out tax deferred last y...
by The Wizard
Mon Jan 08, 2018 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Can you ever win the game?
Replies: 50
Views: 5136

Re: Can you ever win the game?

goodenyou wrote:
Mon Jan 08, 2018 10:31 am
You can only win a game if you know what the rules are.
Rule #1: the game is never over until you are...
by The Wizard
Mon Jan 08, 2018 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Trading 2015 F-150 for 2018 GMC Sierra. Dumb move?
Replies: 31
Views: 1825

Re: Trading 2015 F-150 for 2018 GMC Sierra. Dumb move?

Alexa9 wrote:
Sun Jan 07, 2018 6:16 pm
Need new tires, should I buy a new car?
Got a good chuckle out of that one.
I think it's better to wait until your washer fluid pump stops working before trading in a newish vehicle. Thus actually happened to me...
by The Wizard
Sun Jan 07, 2018 9:23 pm
Forum: Personal Consumer Issues
Topic: Best Phone Plan for 1 person
Replies: 86
Views: 3663

Re: Best Phone Plan for 1 person

I am very very skeptical of the small carriers (Cricket, Boost, Virgin Mobile, etc) and worry about their reliability. They use the same towers and networks as the big carriers, they just pay the big companies for the access. The network they use will vary by phone and where you are but you can usu...
by The Wizard
Sun Jan 07, 2018 9:15 pm
Forum: Personal Consumer Issues
Topic: Best Phone Plan for 1 person
Replies: 86
Views: 3663

Re: Best Phone Plan for 1 person

Try Google's project Fi... The Wizard...I was doing some reading on Project Fi and sounded interesting. Do you have personal experience with them? It could work if I purchased a Pixel 2 from them too. Yes, I have a Nexus 5x on Fi for the past few years. I should upgrade to Pixel 2 soon due to the 5...
by The Wizard
Sun Jan 07, 2018 8:50 pm
Forum: Personal Consumer Issues
Topic: Best Phone Plan for 1 person
Replies: 86
Views: 3663

Re: Best Phone Plan for 1 person

Try Google's project Fi...