Search found 51 matches

by Torg Fadum
Mon Feb 05, 2018 9:11 am
Forum: Personal Investments
Topic: 529 plans...prioritize in-state deduction or low fees out of state?
Replies: 7
Views: 905

Re: 529 plans...prioritize in-state deduction or low fees out of state?

I suggest using the in-state plan to save the 5% ($1,000 if all $20,000 is deductible) on your state taxes. That’s a sure thing. You can then invest that extra $1,000 into a very-low-cost fund in your IRA, 401k, or taxable account. Later on, when the kids are in college, you could cut back a little on your retirement contributions and use the extra cash flow for some of their college expenses. I had a similar situation some years ago. Here in Oklahoma we have a 5% tax rate and a deduction of up to $20,000 (for Married Filing Jointly) for 529 contributions. The expenses are slightly higher than elsewhere, but not outrageous. And they have come down. Unless you are comparing very similar investment options in different states, I don’t think y...
by Torg Fadum
Thu Apr 27, 2017 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Using Roth IRA as a savings account?
Replies: 32
Views: 4625

Re: Using Roth IRA as a savings account?

If you can keep the balance under $15K, have you considered using a myRA Roth IRA for that purpose: https://myra.gov/how-it-works/t

Current interest rate is 2.375%.

Regards,
Torg
by Torg Fadum
Thu Apr 27, 2017 7:46 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 62
Views: 7960

Re: Is $20K I-Bonds considered cash or bond?

I focus on the never-goes-down-even-slightly characteristic that Nisi described and thus tend to think of I-bonds as closer to cash than bonds.

From a practical point of view, it suits me personally to include I-bonds in a broader "Cash & Stable-Value" asset class that also includes EE bonds, 401(k) Stable-Value Fund, TSP G Fund, CDs, myRA Roth IRA, and a little bit in money market funds. For asset-allocation purposes, it makes sense to me to use that "class" for estimated short-term expenses and for the safest portion of my overall portfolio, separate from the riskier bond portion and the much-much-riskier stock portion.

Regards,
Torg
by Torg Fadum
Fri Feb 03, 2017 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Where to Park Emergency Fund to protect against inflation
Replies: 32
Views: 6253

Re: Where to Park Emergency Fund to protect against inflation

Looks like you are doing excellent planning. If your income is not too high to qualify for a Roth IRA, have you considered using myRA (my Retirement Account) Roth IRA’s for part of your emergency fund? You can keep up to $15,000 in a myRA, and it grows tax-free. Current rate is 2.375%. In case of an emergency (or for any reason) you can withdraw your contributions (not interest) at any time. Over the next three years, you and your husband could each put in, for example, $14,000 for a total of $28,000. If your account balance grows close to $15,000 over time, just take some money out to stay under $15,000.
https://myra.gov/how-it-works/?utm_expi ... gov%2Fb%2F
by Torg Fadum
Mon Jul 25, 2016 9:20 am
Forum: Personal Investments
Topic: Roth IRA as temp emergency fund - MMF or BND or ?
Replies: 11
Views: 1781

Re: Roth IRA as temp emergency fund - MMF or BND or ?

Hello jbsmith05, Yes, myRA accounts are intended primarily “for people who don't have a retirement savings plan through work, or lack other options for saving.” In fact, the pilot program was limited to them and required the accounts be opened and funded via employer direct deposit. However, when Treasury rolled out the main program they expanded it, allowing contributions from banks and credit unions, etc. It looks to me like your situation is tailor-made to use myRA accounts for emergency funds, since you have three or four years when you weren’t going to otherwise fully fund your Roth IRA’s. As always, I could be wrong. As I’ve written elsewhere, I believe an adequate emergency fund (EF) helps one be more comfortable – and stay the cours...
by Torg Fadum
Sun Jul 24, 2016 8:55 am
Forum: Personal Investments
Topic: Roth IRA as temp emergency fund - MMF or BND or ?
Replies: 11
Views: 1781

Re: Roth IRA as temp emergency fund - MMF or BND or ?

Hello Engineer250, In my opinion, you are doing some excellent planning. I think it is wise to use your Roth IRA space while you are in the 15% bracket (and perhaps beyond). Regarding your first question, I personally wouldn’t use the Total Bond ETF for an emergency fund. Along with other potential problems, it’s an intermediate-term fund that is probably too volatile. One of the short-term bond ETF’s might be reasonable if you are willing to take a little risk and volatility. I don’t know which one(s) to recommend since I don’t use them for that purpose. Some other people do, I believe. If you and/or your spouse are willing to consider the minor hassle of having additional accounts, you might use myRA -- my Retirement Account -- Roth IRA’s...
by Torg Fadum
Mon Jul 18, 2016 10:10 am
Forum: Investing - Theory, News & General
Topic: What do you recommend for your emergency fund?
Replies: 25
Views: 4187

Re: What do you recommend for your emergency fund?

Hello jbsmith05, Congrats on having a substantial emergency fund. In my opinion, having an adequate safe, liquid emergency fund also allows one to be more comfortable with an aggressive long-term portfolio as appropriate. If you are eligible for a Roth IRA and are not maxing IRA contributions every year (or could reduce them and instead make larger contributions to a 401k), have you considered using a myRA -- my Retirement Account -- Roth IRA for a portion of your emergency fund? Perhaps for the second tier? You have to keep the myRA Roth IRA balance under $15,000 but it earns the same rate as the TSP G Fund. Like other rates, that rate has been going down but was about 1.75% the last time I checked. And of course it grows tax-free. You can...
by Torg Fadum
Sat Nov 14, 2015 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Do you believe that Social Security [is actuarially neutral]
Replies: 130
Views: 18482

Re: Do you believe that Social Security [is actuarially neutral]

If all goes reasonably well I will (and she will to a large extent) not have to worry about having enough income or worrying about the performance of our portfolio from age 70 till we both die . So, the trade off was funding the gap between the total of: pension income, wife's SS and my spousal SS and actual expenses from 62 to 70. That funding will be several hundred thousand. So the decision was for me can you have an acceptable life style and acceptable drawdown of retirement assets from age 62 to age 70. For me the answer was yes I'm willing to spend several hundred thousand to get a much higher COLA SS joint annuity from age 70 on. If circumstances change I can always decide to collect earlier. Yes. My thinking exactly. Lower risk and...
by Torg Fadum
Mon Jun 23, 2014 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Military [Survivor Benefit Plan] and Other Mistakes
Replies: 22
Views: 3067

Re: Military [Survivor Benefit Plan] and Other Mistakes

Hi PH, I am a retired officer who elected the usual (55%) SBP quite a while ago. I also have a small TSP account, from a short stint as a federal civil servant. I support all the helpful advice above on how best to try to help your buddy decide to take SBP and keep the TSP. Regarding SBP, I had sat through one of those in-home life-insurance sales pitches. I could see the financial analysis wasn't quite right, but it was (and is) a little complicated. Your friend should listen to Ole Meph! One other suggestion is to ask your friend how "his guy's" analysis incorporated the fact that SBP premiums are tax-deductible. That's a big advantage, particularly if his tax bracket goes up with a new, civilian salary plus his military retirem...
by Torg Fadum
Tue Aug 27, 2013 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Birthdate and first social security payment
Replies: 46
Views: 76116

Re: Birthdate and first social security payment

I'm not positive but i think the rule you mention only apples to early retirement, not FRA. In your example, I think there will be an August benefit (or entitlement in case of a restricted filing). If he were turning 62 on Aug 15th, then I think his first check and/or spousal benefit would be for September. I believe phonore is correct. I searched the Social Security website and could not find the answer quickly. However, I located the answer in my Kindle copy of Reichenstein and Meyer's excellent book "Social Security Strategies." In their chapter on Nontraditional Situations and Detailed Rules You Should Know, they state that: "2. Except for age 62 and 0 months, you become eligible for benefits the month that you attain th...
by Torg Fadum
Mon Jul 29, 2013 8:54 am
Forum: Personal Consumer Issues
Topic: Learn Guitar or Piano?
Replies: 119
Views: 14884

Re: Learn Guitar or Piano?

Hi Gordon: Congrats on your upcoming retirement!

Hi Stemikger: Glad you enjoyed the links. I bought the DVD of the Concert for George years ago, and it was fantastic.

Regards,
Torg
by Torg Fadum
Sat Jul 27, 2013 5:03 pm
Forum: Personal Consumer Issues
Topic: Learn Guitar or Piano?
Replies: 119
Views: 14884

Re: Learn Guitar or Piano?

Guitar: VERY easy to start up and not sound terrible, but learning curve gets significantly steeper once you start doing things other than the most basic of simple chords. Piano: Also fairly easy to start and not sound terrible, but difficulty increase a lot with 2-hand technique, and once you start seriously playing without looking at the keys, it's hard and takes alot of practice. Violin: The hardest (by far) of all three instruments to sound decent on. Prepare to sound terrible for at least a year, if not longer, and you'll be lucky to even get to the point where you can play 'beautiful' music unless you take it very seriously. Of course, at the higher/highest levels, difficulty is limitless and thus can't be compared amongst the three....
by Torg Fadum
Thu Jul 04, 2013 8:43 pm
Forum: Personal Consumer Issues
Topic: Re-do Quicken based on old Quicken file
Replies: 7
Views: 1390

Re: Re-do Quicken based on old Quicken file

mickyvee, I hope you read this before you blowup your current Quicken file. Seems to me you should try to get some good guidance, perhaps via a Quicken forum before taking such drastic action. FWIW, I strongly agree with the above quote. I am not a Quicken expert by any means, but I have investment data back to 1994 that I would hate to lose. I agree you should try to get help from a Quicken forum or directly from Intuit tech support first. If you want to try something on your own, you could make a backup copy of your file first and then modify that backup copy. For retirement accounts where you are not concerned about cost basis and also rate-of-return calculations, you could try doing "Added," "Removed," or most easil...
by Torg Fadum
Sat Mar 30, 2013 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Joint & survivor pension decision
Replies: 62
Views: 10301

Re: Joint & survivor pension decision [SS Survivor Benefit]

Some numbers: Ages 58 and 48 (births in 1954 and 1965; her birthday has passed, his hasn't) FRAs of 66 and 67 She retires in 7 years at 55 when OP is 65. Both have PIAs of $2000 (fictional numbers, but equal) He claims at 70; she at 62. He gets $2640; she gets $1400; total is $4040. He dies at 77 when she is 67. She gets $2640 as widow. His SS is not lost. It continues until they are both dead. Loss of income is $1400 or 34.6% of SS income, not 50%. [Her SS is lost when he dies, but that's not what was claimed.] Hi sscritic, Sorry for this off-topic question, but I would like to confirm something. Unlike a spousal benefit, her survivor benefit would not be reduced because she started taking her own (work record) benefit early, at age 62, c...
by Torg Fadum
Wed Oct 10, 2012 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Mike Piper's "Social Security Made Simple"
Replies: 51
Views: 7668

Re: Piper's "Social Security Made Simple" Free Until Friday

Hi, Mike. Thanks! I downloaded it to my Kindle, immediately read Chp 11 When to Claim, and found the "Katie and Joe" example closest to our situation. Very helpful. Thanks, again. -Torg
by Torg Fadum
Wed Sep 26, 2012 7:28 am
Forum: Personal Consumer Issues
Topic: GM Volt
Replies: 208
Views: 20734

Re: GM Volt

Sadly, that is true. It is a very big country and overall the population density is low compared to other countries. People seldom work within biking or walking distance of their residence. This makes it very difficult and expensive to design proper public transportation infrastructure. But it seems nobody is even trying to do anything towards that goal. Otherwise, we would have higher gas taxes and $8-$10/gallon gas like everywhere else, and there would be money to fund these efforts. No thanks. This discussion is heavily tilted toward an urban mentality. Public transportation is already heavily subsidized, with most of the money coming from income, sales and gasoline taxes. Nationwide, most subway and bus passengers only pay about 20 per...
by Torg Fadum
Mon Jul 18, 2011 7:02 am
Forum: Personal Consumer Issues
Topic: World Cup Finals - US Womens Team Versus Japan
Replies: 49
Views: 5258

Didn't realize there was another world cup thread. I'm really happy Japan won. 8-) I was rooting for Japan to win even though I'm a born and bred American. The U.S. choked basically, had tons of chances but couldn't get the job done. Hi Okie Indexer, I haven't read or watched any of the post-game analyses, so my personal opinion may be all wet. As I recall, we had a lot of very close shots (for example, Lauren Cheney in the first minute?) and also hit the woodwork twice. There were several other near-misses and a couple that should have been at least closer to the goal. I think our field play, especially in the first half, was great. On the other hand, our penalty kicks were extremely disappointing. That is especially true in contrast with...
by Torg Fadum
Sun Jul 17, 2011 8:36 pm
Forum: Personal Consumer Issues
Topic: World Cup Finals - US Womens Team Versus Japan
Replies: 49
Views: 5258

Re: Congratulations to Japan

Another thriller, a real nail-biter. Though very disappointed in the end result, I'm happy for Japan. Regards, Torg I only watched the first 10 minutes of the game but I obtained periodic updates. Very Very disappointed in the end result. Lots of missed opportunities. Hi Mike, Yes, lots of missed opportunites indeed. We should have won that game comfortably, had we not missed so many great scoring chances. Those misses were painful to watch. But "shoulda, coulda, woulda" doesn't cut it. And Julie Foudy misreading the clock again in the second overtime doesn't bother me. Nor was the referring a problem; I thought the officials did a very good job. It's just the game's result that hurts! Again, kudos to a wonderful Japan team for p...
by Torg Fadum
Sun Jul 17, 2011 7:17 pm
Forum: Personal Consumer Issues
Topic: World Cup Finals - US Womens Team Versus Japan
Replies: 49
Views: 5258

Congratulations to Japan

Another thriller, a real nail-biter. Though very disappointed in the end result, I'm happy for Japan.

Regards,
Torg
by Torg Fadum
Fri Jul 15, 2011 5:05 pm
Forum: Personal Consumer Issues
Topic: World Cup Finals - US Womens Team Versus Japan
Replies: 49
Views: 5258

Re: Thanks

I'd also like to add that the commentators (Ian Darke and Julie Foudy) did a great job on this game and all the games. Ian: "Can you believe this?!" Julie: "I can believe it!" I love Ian Darke, but it was getting really annoying that first Foudy and then both Darke and Foudy couldn't figure out how much time was left in the Brazil match. Serious arithmetic issues. Hi cafanci, You're right about that. I noticed it, too, and mentioned it during the game. For some reason, for a few minutes they apparently thought the second OT would end at 110 minutes, rather than 120. Hard to fathom, since they've both been involved in hundreds of games. Perhaps there was a problem with their clock, or perhaps they were just excited or st...
by Torg Fadum
Fri Jul 15, 2011 8:06 am
Forum: Personal Consumer Issues
Topic: World Cup Finals - US Womens Team Versus Japan
Replies: 49
Views: 5258

Re: Thanks

SVariance1 wrote:
Torg Fadum wrote: Watching Wambach score on that header in the 122nd minute on a perfect cross from Rapinoe to tie the game just before the end of Stoppage Time at the end of the second overtime period was incredible.
Enjoy!

http://www.youtube.com/watch?v=fXFclSGSsGQ
You betcha. Over and over again. Thanks!

I'd also like to add that the commentators (Ian Darke and Julie Foudy) did a great job on this game and all the games. Ian: "Can you believe this?!" Julie: "I can believe it!"

Regards,
Torg
by Torg Fadum
Fri Jul 15, 2011 6:28 am
Forum: Personal Consumer Issues
Topic: World Cup Finals - US Womens Team Versus Japan
Replies: 49
Views: 5258

Thanks

Mike, thanks for bringing this subject up. My family and I are looking forward to rooting for the USA in the final against Japan this Sunday. That’s going to be another really tough match against a classy team. While all the games have been enjoyable, the USA victory over Brazil last Sunday was one of the greatest games ever, despite the terrible officiating. Watching Wambach score on that header in the 122nd minute on a perfect cross from Rapinoe to tie the game just before the end of Stoppage Time at the end of the second overtime period was incredible. In the heat, the USA team was a “man down” for almost an hour, outplaying Brazil during that period. Superb (and superior) physical conditioning, discipline, and composure. I don’t know if...
by Torg Fadum
Thu Jun 09, 2011 9:34 pm
Forum: Personal Investments
Topic: Selling specific tax lots at Schwab
Replies: 32
Views: 6835

It Does Seem Ridiculous, Doesn't It?

Hi FedGuy, My sympathy for your difficulty here. Sorry the "trader" couldn't help. Since you've had two different Schwab people tell you that Schwab can't do what you need it to do, that may be accurate. If it were me, though, I'd call back again and speak with a different trader and ask why he/she couldn't just put a VSP comment in the trade confirmation. I like Charles Schwab very much overall, but if they can't support this I'd be tempted to ask them how much the account-closure fee is so you can transfer all your assets to a discount broker that will do something this basic. It's probably $50. If Schwab doesn't support specific-shares method for mutual funds, are you going to have a much bigger problem down the road when you m...
by Torg Fadum
Thu Jun 09, 2011 8:01 am
Forum: Personal Investments
Topic: Selling specific tax lots at Schwab
Replies: 32
Views: 6835

Changing Cost-Basis Method for Sell Orders

Hi FedGuy, I just went into my Schwab One account as if to place a trade. On the Trade Stocks screen (for stocks and ETFs) there is a Change link under Cost Basis Method which brings up the following choices: You can choose an alternative cost basis method for this order only. This method will be used to calculate the gain or loss for this order, and for any applicable reporting to the IRS. First In First Out (FIFO) - Current Account Default* Shares you acquired first are sold first. * To change the account default go to the Cost Basis Method tab. Last In First Out (LIFO) Shares you acquired last are sold first. High Cost Shares with the highest cost are sold first. Low Cost Shares with the lowest cost are sold first. Tax Lot Optimizer™ Lot...
by Torg Fadum
Thu Jun 09, 2011 7:34 am
Forum: Personal Investments
Topic: Selling specific tax lots at Schwab
Replies: 32
Views: 6835

Is your rep a trader?

Hi FedGuy,

Is your rep a trader or someone specifically associated with your account? You might try asking for the Trading department.

Regards,
Torg
by Torg Fadum
Thu Jun 09, 2011 7:17 am
Forum: Personal Investments
Topic: Selling specific tax lots at Schwab
Replies: 32
Views: 6835

Ask for Trader

Hi FedGuy, It's been several years since I've done this, so the process may have changed. Back then, I simply had the trade ready to go on line, but before submitting it called Schwab about placing the trade. The trader would enter the VSP (Versus Purchase date(s) for the desired share lots) info into the trade that I would submit on line. The VSP info would then appear in the trade confirmation (Schwab eConfirms e-mail), such as "VS PURCHASE DATE 2/3/99 THROUGH 10/31/06." In that case I was selling all the tax lots bought between those two dates. Because the trade was placed on line, there was no broker commision even though their trader assisted by entering the VSP info on the share lots to be sold. Good luck. Regards, Torg
by Torg Fadum
Tue Nov 23, 2010 9:58 pm
Forum: Personal Consumer Issues
Topic: poll-equity/bond allocation of almost or recent retirees
Replies: 21
Views: 2732

36%

I retired six months ago. No mortgage or other debt. Military retirement pay. Age 59. We currently have (and plan to keep) about 36% in fixed income, not including additional cash for a few expected large expenses in the near-term. Detailed allocation is: 12% TIPS 12% Nominal bonds 12% Cash/Stable Value 4% CCF (PCRDX) 6% REIT (approx half US and half foreign) 24% US equities 24% Foreign developed equities 6% Emerging Markets A couple of notes about the above allocation. It does not include some separate money in a few individual stocks (mental accounting). Also, my “cash” category includes only a small amount in money-market funds. Most of the “cash” is in Series I and some Series EE Savings Bonds, a good 401(k) Stable Value fund, and the T...
by Torg Fadum
Tue Jun 08, 2010 6:50 pm
Forum: Personal Consumer Issues
Topic: Short Trip to Niagara Falls
Replies: 29
Views: 5297

Whirlpool Jet Boat tours

Hi Dug, In addition to the many attractions right at the Falls, you might be interested in one of the Whirlpool Jet Boat tours in the lower Niagara River from either their Niagara Falls, Ontario, or Lewiston, New York, locations. My family and I have taken the tour a couple of times from the Lewiston side. It’s a fast, bumpy, wet and exciting boat ride. If the link below doesn’t work, please Google “jet boat tour Niagara Falls”: http://www.whirlpooljet.com/default.aspx I am originally from Grand Island NY, located in the Niagara River about seven miles above the Falls. Sadly, I echo JDCPAEsq’s comment that the Canadian side is far nicer than the American side. However, the Falls’ natural beauty is awesome from either side; the city of Niaga...
by Torg Fadum
Sat May 15, 2010 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Parents on brink of bankrupcy - Need Help!!
Replies: 54
Views: 8628

Dave Ramsey

Tell them to start listening to Dave Ramsey for free here or on the radio. http://www.daveramsey.com/radio/home/ Hi Jeff, I strongly agree with rec7's and 3CT_Paddler's recommendations on Dave Ramsey. (Prepare for Option D and probably selling the boat and one of the vehicles if they don't need both of them to get to work.) If your parents listen to Dave Ramsey and get serious about wanting to change their financial lives, you might even pay for them to attend his Finanical Peace University if there is a class in their local area. That would be only if they are ready to actually change behavior, not just half-heartedly try it. There's no easy way out. As you have already been advised, Option E is wrong. Good luck. Regards, Torg
by Torg Fadum
Wed May 12, 2010 6:57 pm
Forum: Investing - Theory, News & General
Topic: Retirees - Help With Forbes Column
Replies: 59
Views: 11445

Too Soon to Tell

Hi Mel & Frugal Investor,

Thank you both for responding to my post.

Mel, I’ll send you a PM and let you decide if any of my comments are useful.

Regards,
Torg
by Torg Fadum
Sun May 09, 2010 9:50 am
Forum: Investing - Theory, News & General
Topic: Retirees - Help With Forbes Column
Replies: 59
Views: 11445

Too Soon to Tell

Hi Mel,

Having been retired less than 48 hours, I think I'll have to get back to you later! :D

Regards,
Torg
by Torg Fadum
Tue Mar 23, 2010 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: 1098-T/Education credit question
Replies: 6
Views: 1797

Correct

I believe you are on the right track. HueyLD made the key point: that you claim expenses only in the year that you actually paid them, regardless of when they were billed.

You do have an option to pay the Spring 2011 bill in Dec 2010 and claim those expenses in your 2010 return, if that is better for you than paying them in 2011 and claiming them in your 2011 return.

Regards,
Torg
by Torg Fadum
Thu Mar 04, 2010 7:23 pm
Forum: Investing - Theory, News & General
Topic: At What Point Do You Have Enough?
Replies: 69
Views: 12552

Kudos for John D. McDonald, Dick Francis & Robert B. Par

In John D. MacDonald's wonderful mystery novels, his fictional investigator Travis McGee talks about taking his retirement in chunks. That is, after every successful case he knocks off for a while: "Trav, how much work like that do you find lying around when you start to get so broke you need it?" "So much that I can pick and choose. This is a complex culture, dear.... I like to take fairly good-sized [cases]. And then I can take another piece of my retirement. Instead of retiring at sixty, I'm taking it in pieces as I go along." I don't know whether that's what MacDonald himself did, but of course a successful writer, especially a genre series writer, can have a long-lasting career, as long as he remains mentally alert...
by Torg Fadum
Mon Jan 18, 2010 11:22 am
Forum: Investing - Theory, News & General
Topic: Military Investing
Replies: 125
Views: 65729

Insurance, DIC, SBP and Thanks!

Hello EmergDoc, Thanks for your military medical service and for your always helpful advice. I think every military member should read and heed your tips. I have a few minor comments related to insurance and also the Survivor Benefit Plan (SBP) mentioned. It’s been a while since I retired, but back then active-duty members were automatically covered by something I think was called the Dependents Indemnity Coverage (DIC) program. Is that still in effect? DIC provided/provides substantial monthly benefits for dependents (analogous to SBP payments for retirees’ survivors) if the member dies while on active duty. I’ve discarded all my old annual statements from the Armed Forces Services Corp. that showed the amounts of those benefits, so I can’...
by Torg Fadum
Sun May 10, 2009 7:59 pm
Forum: Personal Investments
Topic: Need help with 401k selection! *Updated*
Replies: 16
Views: 4130

Some 401k Plans Match After-Tax Contributions

Hello Honghong, Congratulations on your excellent financial position at such a young age and your aggressive approach to saving. Debt-free, with a six-month emergency fund and a mid-five-figure portfolio -- you have made a great start! If you are concerned about missing the company match, I have a comment that may be of interest. I am not necessarily recommending this, but you may have an option to receive company-matching funds on after-tax contributions to your 401k. It depends on the specific provisions of your company’s 401k plan. IMHO, it is worth looking into by reviewing that plan and also double checking with your HR department. (My company does match funds on after-tax contributions, and I have been taking advantage of that for sev...
by Torg Fadum
Sat May 02, 2009 6:48 pm
Forum: Personal Consumer Issues
Topic: Name your top favorite tv shows
Replies: 188
Views: 33647

1. House
2. 24
3. Lie to Me

Regards,
Torg
by Torg Fadum
Tue Apr 28, 2009 3:56 pm
Forum: Personal Investments
Topic: 529 Qualified Expenses - Room & Board Question
Replies: 3
Views: 6509

CollegeBoard.com for Costs

Hello Lar, I think you have a good plan. The allowable cost of living at home for qualified 529 withdrawals is typically a lot less than the college’s campus room & board costs. If you go to www.collegeboard.com, search for the college(s) of your choice, then click on Cost & Financial Aid, you will see three sets of room & board costs. For example, here are the room & board annual costs for Ohio State University (osu) in Columbus for the Fall 2008 academic year: Living on Campus: $7755 Living at Home: $3780 Commuting, Not Living at Home: $8172 There is a significant variation from college to college. For example, at the real :) OSU (Oklahoma State U. in Stillwater, OK), the comparable costs are: Living on Campus: $6358 Livin...
by Torg Fadum
Sat Mar 07, 2009 9:39 pm
Forum: Personal Consumer Issues
Topic: It's a LOAN, people...
Replies: 63
Views: 10245

Gekko, Thanks for the Ben Franklin Quote

Gekko wrote: "To relieve the misfortunes of our fellow creatures is concurring with the Deity; it is godlike. But if we provide encouragement for laziness, and support for folly, may we not be found fighting against the order of God and Nature, which perhaps has appointed want and misery as the proper punishments for, and cautions against, as well as necessary consequences of, idleness and extravagance? Whenever we attempt to amend the scheme of Providence, and to interfere with the government of the world, we had need be very circumspect, lest we do more harm than good." - Benjamin Franklin
by Torg Fadum
Sun Jan 04, 2009 11:27 am
Forum: Personal Consumer Issues
Topic: Songs you've played the most...
Replies: 70
Views: 11881

Thanks, imbogled

Many thanks for the link to the video of the Blackbird sound check!

Going from financial stuff to that video is a transition from the ridiculous to the sublime.

Regards,
Torg
by Torg Fadum
Mon Sep 01, 2008 7:34 am
Forum: Personal Investments
Topic: How do you keep track of tax lots?
Replies: 31
Views: 13218

Quicken 2007

Hello Piper, I have been using Quicken for years and am currently on Quicken 2007. I think it will do what you need. As noted above, it will also transfer the details to TurboTax to show the specific lots in your tax return if you want to do that rather than just putting in "Various." In the Enter Transactions screen, when selling a security there is a Specify Lots button. After you put in the sale date, number of shares to sell, and the sale price per share, Specify Lots will display a list of every lot for that security, showing the Purchase Date, Type (e.g., Bought, Reinvested), Holding Period (Long or Short Term), Purchase Price, Number of Shares to Sell, Number of Shares Available, and Gain/Loss for each lot. You can then eit...
by Torg Fadum
Wed Jun 11, 2008 7:17 pm
Forum: Personal Investments
Topic: Schwab Personal Choice Retirement Account - Any Experience?
Replies: 15
Views: 8100

Schwab PCRA Is Good

Hello Apprentice_941,

Yes, the 0.15% fee is just a small nuisance, not like a 5.75% load or a $35 fee for a transaction-fee fund.

I use the Schwab PCRA for most of my 401k holdings, and it is very convenient. On line transactions are easy, and phone customer support is very good (like all Schwab service, in my experience).

I use the PCRA for bulk purchases of ETFs like VWO and IWN, some smaller amounts of mutual funds like Dreyfus International Index and Dreyfus Small Cap Index for semi-monthly purchases and rebalancing, and a few other funds (including PCRDX). The only transaction-fee fund I purchased was a bulk purchase of Bridgeway Ultra Small Company Market (BRSIX).

Regards,
Torg
by Torg Fadum
Sun Apr 27, 2008 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Fitness over fifty suggestions
Replies: 52
Views: 14398

Austin's Town Lake Hike & Bike Trail

Carl Z,

Thanks for the tip about the Hike & Bike Trail. We just returned from a 3-day weekend in Austin for a couple of concerts. I spent about 2 hrs on the trail Saturday morning, and it was great. I've never seen so many people working out.

Of course, this morning (Sunday) was not so nice, with the hail and thunderstorms.

Regards,
Torg
by Torg Fadum
Wed Sep 19, 2007 6:23 am
Forum: Investing - Theory, News & General
Topic: Whats so great about 1 million dollars?
Replies: 105
Views: 33271

OT for Unclemick: Concert was Fantastic

It was "1964 The Tribute" (#1 Beatles-tribute band in the world). Kind of a small crowd in the Uptown Theater, but the band was fantastic as always. We've seen them dozens of times, including the following night in Wichita.

In addition to the Uptown Theater, other architecture there in KC was very nice (Liberty Memorial, train station, Kansas City Life Insurance building, etc.). We look forward to visiting again next year.

Regards,
Torg
by Torg Fadum
Mon Sep 17, 2007 8:22 pm
Forum: Investing - Theory, News & General
Topic: Whats so great about 1 million dollars?
Replies: 105
Views: 33271

Thanks Again, Unclemick

Just wanted to let you know we had a great dinner at Fiorella's Jack Stack BBQ in Kansas City last Friday. We ended up at the one on Wyandotte near 47th St. A lot of great food. In fact, we couldn't finish it all, which is unusual for me. However, we wanted to be able to "Twist & Shout" at the concert, so we regretfully left a little food on the plate.

Thanks again for the tip.

Regards,
Torg
by Torg Fadum
Sun Sep 09, 2007 5:29 pm
Forum: Investing - Theory, News & General
Topic: Whats so great about 1 million dollars?
Replies: 105
Views: 33271

Thanks, Unclemick

Found it on the map. Looks only about a half-mile from our hotel. Thanks for the quick reply!

Regards,
Torg
by Torg Fadum
Sun Sep 09, 2007 12:47 pm
Forum: Investing - Theory, News & General
Topic: Whats so great about 1 million dollars?
Replies: 105
Views: 33271

OT for unclemick: BBQ in Kansas City

Could you recommend any BBQ or other good restaurants near the Uptown Theater at 3700 Broadway in Kansas City? I'm driving there from Oklahoma City for a concert on Friday (14 Sep) and may not have a lot of time....

Thanks in advance for any suggestions.

Regards,
Torg
by Torg Fadum
Sun Sep 02, 2007 8:11 pm
Forum: Investing - Theory, News & General
Topic: Does a Non-deductible IRA ever make sense? Newbie questions
Replies: 21
Views: 5580

Congrats on a Great Plan and Thanks to Your Son

Kathryn,

I don't have much to add, but I do want to say that it is wonderful that you will be helping your son take advantage of the HERO act with a Roth IRA. That is awesome. I hope he and his buddies received good info about the HERO act. (If not, perhaps he could diplomatically spread the news.)

And please pass on our (my wife and my) thanks for his military service.

I echo wwhan's and Chris' comments about the ease of the Fm 8606. And it's trivial with Turbo Tax. Similar to Chris, I did a Roth conversion in 1998, and it was very easy (well, except for actually paying the tax).

Regards,
Torg
by Torg Fadum
Sun Aug 26, 2007 4:52 pm
Forum: Personal Investments
Topic: Pros and cons of paying off current home mortgage?
Replies: 18
Views: 5614

Hello Clay,

Even if there is no prepayment penalty, the current loan balance is not the payoff amount because you still owe interest (probably from the first of the month) on the balance till the date your mortgage company receives the payoff funds from you. So, if were to select the 29th of the month as your payoff date, you'd need to include 29 days' worth of interest. In our case, we specified a date and ABN AMRO told us the exact payoff amount.

It also included a $13 Recording Fee.

Good luck!

Regards,
Torg
by Torg Fadum
Mon Jul 16, 2007 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: AZrunner featured in Arizona Republic
Replies: 13
Views: 4119

Try Some 100-Meter Strides for a Little Variety

Hi Allan, I agree with Norm, naturally, on the variety. After you've built up to it, the longer run is probably the most beneficial. If you want to ease into some interval workouts, you could start by doing some 100-meter strides. Warm up first by doing a very slow jog for 10 minutes, then gradually accelerate to a faster stride for about 100 meters (I usually just count steps or run for 20-25 seconds, since I'm never on the track), then slow down to a very slow jog (or walk) for another 100 meters or so, and keep alternating fast strides and slow jogs (or walks) for about a mile total (8 sets of faster strides with 8 sets of slow jogs). As usual, walk around for 2 to 5 minutes when you're done to cool down gradually. If you want to try the...
by Torg Fadum
Sun Jul 15, 2007 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: AZrunner featured in Arizona Republic
Replies: 13
Views: 4119

Thanks, Norm & Good Luck, Allan

Hi Norm: great stuff! Hi Allan: I agree with Doug. You're well on your way. Don't push it too hard too soon. You're doing great already. Four months after knee surgery I had to start running all over again by alternating 100-meter jogs (really pathetic staggering) and 100-meter walks on the track. I would suggest putting a little more variety into your workouts. And I really recommend you do as much running on trails as you can rather than on pavement. I am also a 56-year-old engineer who has been running 30-45 miles per week for the last 26 years (aside from injury time), but now very slowly. Unlike Norm, if I were to run a 10K, my time would be closer to (probably greater than!) my age than to the 35-minute races in my distant past. The m...