Search found 1513 matches

by bdpb
Sat Aug 11, 2018 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Where to invest after 401k is full
Replies: 16
Views: 2007

Re: Where to invest after 401k is full

Situation: age 62, putting away enough to fill Roth 401k and 401k catchup. Have some extra income to save and wondering about two choices: 1) Non-deductible traditional IRA (not eligible for Roth IRA or deductible traditional IRA) You should change your Roth 401k contributions to deductible and mak...
by bdpb
Sat Aug 11, 2018 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: Where to invest after 401k is full
Replies: 16
Views: 2007

Re: Where to invest after 401k is full

Situation: age 62, putting away enough to fill Roth 401k and 401k catchup. Have some extra income to save and wondering about two choices: 1) Non-deductible traditional IRA (not eligible for Roth IRA or deductible traditional IRA) You should change your Roth 401k contributions to deductible and mak...
by bdpb
Sat Jul 21, 2018 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Reevaluating mortgage payoff strategy
Replies: 63
Views: 6186

Re: Reevaluating mortgage payoff strategy

Listen to grabiner and compare your mortgage payoff with investing in bonds. If you decide not to payoff and have additional taxable funds, here is a suggestion for the taxable funds. Instead of investing the taxable, use it to pay taxes on Roth IRA conversions. Currently, the state of IL does not t...
by bdpb
Tue Mar 13, 2018 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Can I take an 85+% pay cut for fun?
Replies: 80
Views: 9977

Re: Can I take an 85+% pay cut for fun?

Synopsis: Can I quit my current job that pays roughly $275k (that I hate), to pursue a career that I'm passionate about but pays only ~ $35k? One minor consideration I almost hate to mention is that as it stands now, I would eventually receive a mid-seven-figure inheritance. However, I don't want t...
by bdpb
Fri Mar 09, 2018 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Can I take an 85+% pay cut for fun?
Replies: 80
Views: 9977

Re: Can I take an 85+% pay cut for fun?

Synopsis: Can I quit my current job that pays roughly $275k (that I hate), to pursue a career that I'm passionate about but pays only ~ $35k? One minor consideration I almost hate to mention is that as it stands now, I would eventually receive a mid-seven-figure inheritance. However, I don't want t...
by bdpb
Thu Feb 08, 2018 12:45 am
Forum: Investing - Help with Personal Investments
Topic: Making IRA (Trad or Roth) contributions while taking distributions?
Replies: 7
Views: 731

Re: Making IRA (Trad or Roth) contributions while taking distributions?

Why would you elect to pull $6500 out (and create tax liability), then turn right around and put $6500 back in(and create tax savings)? The net result is zero, if done back to back. It seems completely pointless, unless the annual IRA distribution is mandated. It's a net zero for federal taxes. It ...
by bdpb
Tue Jan 16, 2018 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: 23 Years Old, Uncomfortable with Target Date Funds
Replies: 19
Views: 2403

Re: 23 Years Old, Uncomfortable with Target Date Funds

1. I think it's a good decision. It leaves more flexibility with career choices. 2. As long as you can handle the volatility of 100% stocks, no problem. Early on your contributions are large compared to your portfolio, so the volatility is not noticed anyway. Probably can wait on splitting TR funds ...
by bdpb
Sat Jan 06, 2018 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Simplification and Overview
Replies: 23
Views: 2095

Re: Portfolio Simplification and Overview

Debt: Our Mortgage - $416k @ 4.75% (currently pay extra each month to complete a 13th payment each year) Her student loans – $85K @ mix of 4.75% and 6.8% (applying extra to principal each month) His car loan - $5600 @ 1.89% (do not pay additional each month) New annual Contributions $18,000 taxable...
by bdpb
Sun Dec 24, 2017 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Taxpayer Classification Change; Overall Tax Rate Going Up in 2018
Replies: 4
Views: 898

Re: Taxpayer Classification Change; Overall Tax Rate Going Up in 2018

I max both my (Roth) IRA and (traditional) 403(b), and I anticipate with the new $18,000 standard deduction I'll be just above the 22% threshold. I like the simplicity of just having the Roth IRA for future use. However, if I start a traditional IRA in 2018, my marginal rate would be 12%. Is this a...
by bdpb
Fri Nov 24, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds v. Mortgage Payoff
Replies: 21
Views: 2526

Re: Bonds v. Mortgage Payoff

If you want to pay off your mortgage why wouldn't you drawdown your stocks and bonds proportionally so you maintain your desired asset allocation? It seems to me that you are adding risk. +1 Generally, selling bonds to pay debt does not increase investment risk. Assume one starts with X in stocks a...
by bdpb
Thu Nov 16, 2017 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: Help for semi retired friend with 8 figure savings
Replies: 68
Views: 6058

Re: Help for semi retired friend with 8 figure savings

If I had this much money and didn't need any more, I would definitely use the "Larry Portfolio", or something like that.

70% US intermediate treasuries
10% US SCV
10% Intl SCV
10% EM
by bdpb
Thu Nov 16, 2017 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Social Security younger Wife
Replies: 15
Views: 1960

Re: Social Security younger Wife

I am 66, my Wife is 55. I am also in good health... We don't need the money now ... Worst case, I die tomorrow and she is stuck living without an SS income stream until she is at least 62 (claims early at reduced benefit). I worry about this case and the drain on our (her) finances until she reache...
by bdpb
Tue Nov 07, 2017 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Living Off Savings to Max Retirement Accounts?
Replies: 27
Views: 3351

Re: Living Off Savings to Max Retirement Accounts?

Projected spending in retirement is about $50K, similar to my annual spending now, putting my current and projected marginal tax rate at 25%. I would contribute to tax deductible until you reach 15% marginal rate (maybe consider state taxes, too). For example, 75k income - 2k employer health ins. p...
by bdpb
Wed Jul 12, 2017 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Please review my tax saving strategy
Replies: 17
Views: 1779

Re: Please review my tax saving strategy

What I would do (and am doing). Stop Roth contributions. Sell taxable with LTCG. Keep your pulse on spending and funds to potentially make some Roth contribution if spare funds become available around tax time. I have US Savings bonds also in the mix.......as in enough to fund the whole thing. But ...
by bdpb
Fri Jun 02, 2017 11:12 am
Forum: Investing - Help with Personal Investments
Topic: 1 year (ish) Bogleheads Portfolio Checkup - 23 yr old
Replies: 8
Views: 979

Re: 1 year (ish) Bogleheads Portfolio Checkup - 23 yr old

It is important to note that I just moved out of my house and into an apartment in Chicago with 2 roommates. I am paying $1000 in rent per month. Tax Rate: 25% Federal, 3.75% State State of Residence: IL Income: $65K New annual Contributions Max Roth IRA 2. I am about a month into living in my new ...
by bdpb
Tue Mar 14, 2017 12:32 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio help - New and having Analysis Paralyses
Replies: 4
Views: 821

Re: Portfolio help - New and having Analysis Paralyses

Debt: $137,000 mortgage at 3.6%; currently paying an extra $500/month. Rate adjusts yearly. Tax Rate: 28% Federal, 3.75% State State of Residence:IL Taxable Currently $100k in MM account. Was planning for a larger home purchase but have decided against it. Now it needs to be invested (prefer to kee...
by bdpb
Sun Mar 12, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Simplified positions, now what?
Replies: 5
Views: 805

Re: Simplified positions, now what?

The oldest kid 5 years from college, the youngest is 9 years from college. Both of us are 42, filing jointly, annual income 250K, 33% fed bracket, in state of Illinois. No idea when we will retire. We are unsure if it's worth opening a 529 for our children, didn't like all the negative publicity on...
by bdpb
Sun Mar 12, 2017 12:01 am
Forum: Investing - Help with Personal Investments
Topic: Help and critique with portfolio and tax efficient placement
Replies: 4
Views: 637

Re: Help and critique with portfolio and tax efficient placement

I just finished reading the Four Pillars of Investing by William Bernstein, and have read several investment blogs (jlcollinsnh, mr. money moustache,and a few others). You should also read "If You Can" by Dr. Bernstein. You may already be on your way to adopting what he says but it's very short and...
by bdpb
Sat Mar 11, 2017 11:55 pm
Forum: Investing - Help with Personal Investments
Topic: TSP...10 years left
Replies: 12
Views: 2151

Re: TSP...10 years left

Between my USPS retirement, Social Security, and my wife's paycheck, I won't have to touch our TSP until I hit 70. You should consider spending down your TSP before drawing SS at 65. It can be very beneficial to delay drawing SS until 70, especially for a married couple and even more so when the hi...
by bdpb
Sat Mar 11, 2017 11:47 pm
Forum: Investing - Help with Personal Investments
Topic: Help with asset allocation - review
Replies: 8
Views: 1107

Re: Help with asset allocation - review

Thanks for the help! As far as this suggestion to use Total market index funds in the taxable account is it just as simple as selling the SP500 and buying the total market fund instead? Arent there tax implications for selling/buying in my taxable account? Or is this nothing to worry about? It's no...
by bdpb
Sat Mar 11, 2017 11:35 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Advice for Investments
Replies: 5
Views: 623

Re: Seeking Advice for Investments

1. With our cash on hand (the emergency funds are sitting in a savings account at a bank), what can we do with that? Index funds? Bonds? We are open to all suggestions. 2. How can we improve our tax situation? We get a decent deduction on the mortgage interest because we are only 1 year into it and...
by bdpb
Sat Mar 11, 2017 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Gain Harvest Vs. Roth Conversions
Replies: 11
Views: 999

Re: Tax Gain Harvest Vs. Roth Conversions

What is the marginal state tax cost on contributing to your Roth? Not sure if this works for you but you could harvest gains in the same year your contribute to a Roth? Convert other years. Illinois has a flat tax rate of 3.8% but they don't tax Roth conversions. So it doesn't make sense to directl...
by bdpb
Fri Mar 10, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Payoff Student Loans Early? Requesting help.
Replies: 14
Views: 1249

Re: Payoff Student Loans Early? Requesting help.

Agree with everyone else to use option 4. But, you should shift the bond portion of your retirement assets as much as possible to your Roth. This will help to avoid the situation where you have a need for your EF at the same time that the stock market has a big drop. A drop of 50% in stocks in your ...
by bdpb
Fri Mar 10, 2017 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review and Our Complete Economic Situation
Replies: 16
Views: 1858

Re: Portfolio Review and Our Complete Economic Situation

Our business $2.4M-$2.8M/yr S-Corp with approx. $250,000.00 in owners’ income and 10% net profit. This can fluctuate a lot depending on how the overall economy is doing. He works full time, she works part time at the business. My guess is that we could sell the business for between $500k and $1M. D...
by bdpb
Fri Mar 10, 2017 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: AA across 5 accounts - On the right path?
Replies: 8
Views: 844

Re: AA across 5 accounts - On the right path?

Side Question: Currently, the IRA funds are in cash/MM from the initial rollover...any thoughts on leaving the initial funds in cash until valuations go down, and only putting new contributions toward my desired AA??? I get the "anti-market timing" methodology, just having a hard time allocating th...
by bdpb
Thu Mar 09, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

But you would also get a large benefit from writing off the losses in the 529 in this case. This would net you about 1.8k (~30% * (10k loss - ~4k itemized deduction threshold)). Wait, what do you mean here by writing off the losses in the 529? Case 3 has some ways to mitigate the cost of the taxes ...
by bdpb
Thu Mar 09, 2017 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: AA across 5 accounts - On the right path?
Replies: 8
Views: 844

Re: AA across 5 accounts - On the right path?

You definitely nailed in on the head with the most simplistic approach possible when dealing with 5 separate accounts. I guess the most difficult part I am struggling to project are the account balances and allocations based on the proposed future contributions (contribute to 401/403 to company mat...
by bdpb
Thu Mar 09, 2017 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: AA across 5 accounts - On the right path?
Replies: 8
Views: 844

Re: AA across 5 accounts - On the right path?

I agree that I would try to use the minimum number of funds possible. I would strongly consider the Vanguard Target Retirement fund in His 401k. Then try to find the minimum number of funds between her 401k and the IRA's to meet your overall desired AA. I would consider the EQ Equity 500 Index fund...
by bdpb
Thu Mar 09, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

KlangFool wrote:[

At 28% marginal tax rate and 3.75% state income, $3,000 TLH is worth at least $1,000 per year. And, you do not tie up 20K per year with 529.

KlangFool
How much have you invested and TLH those investments over the last 7 years?
by bdpb
Thu Mar 09, 2017 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: AA across 5 accounts - On the right path?
Replies: 8
Views: 844

Re: AA across 5 accounts - On the right path?

To simplify I would use as few funds as possible and use the lowest cost funds starting with the worst case accounts. I would add a US Extended market fund to complete Total US with the SP500 fund. At Fidelity, I would use their low cost index funds only. You need to start with a clearly defined AA....
by bdpb
Thu Mar 09, 2017 2:45 am
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

So I tried some numbers: * I start with $24K initial investment with $1k every month. * My first kid starts going to school in 15 years in 2032. * The contributions in 15 years will be $180K * FV calculations with 6% growth is $291K * The gain would have been $111K Case 1: Taxable best case * Tax c...
by bdpb
Wed Mar 08, 2017 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

<< Many people plan to continue to work and save beyond their kids' college years. >> And, how well does the plan turn out? It does not work out for many of my peers in the 40s and 50s. <<I personally don't think the OP is in that situation. >> Are you in the IT industry? If not, how do you know th...
by bdpb
Wed Mar 08, 2017 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

1) You cannot TLH in the 529 account. <<you can stop 529 contributions.>> 2) This does not help you. It is a one-way street. Once, the money is in, you pay 10% penalty for getting the gain out if you do not spend the money for education. It is safer not to put the money in the 529. 3) The right dec...
by bdpb
Wed Mar 08, 2017 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

So I tried some numbers: * I start with $24K initial investment with $1k every month. * My first kid starts going to school in 15 years in 2032. * The contributions in 15 years will be $180K * FV calculations with 6% growth is $291K * The gain would have been $111K These scenarios don't have to be ...
by bdpb
Wed Mar 08, 2017 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

I'm not so sure that is the case. TLH can lower your tax costs, but it's nowhere near as effective as a total exclusion of gain on sale in reducing tax burden. Few people will perfectly manage their taxable accounts- most who are not active traders will simply buy and hold. Moreover, TLH won't do y...
by bdpb
Wed Mar 08, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

<< Taxable investing is not free. It will cost about .4% per year to invest in taxable.>> Okay. Please tell us how do you come up with this number. QD tax rate of 15% plus state tax rate of 2.7% ((1-.28)*3.75%) for a tax rate on QD of 17.7%. Annual dividend distributions of 2.2%. Tax cost of .39%.
by bdpb
Wed Mar 08, 2017 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

So, why should OP put money into the 529 plan? Risk versus reward is no good. A small amount of possible tax savings versus 10% withdrawal penalty? Please note that the tax advantage of 529 for people in the 25%/28% tax bracket is minimal versus the taxable account. For people that tax managed thei...
by bdpb
Tue Mar 07, 2017 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

<< It seems to me it would be easier for an older IT worker to find a new job than an older construction worker.>> How is that useful if both are permanently unemployed and/or under-employed? << If they continue at this rate for another 10 to 15 years (when they reach their 40s or 50s), under/unemp...
by bdpb
Tue Mar 07, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

Age discrimination is pervasive in the IT industry. Many of my peers in the 40s and 50s are permanently unemployed or under-employed. << Unless there is a black swan type event it seems likely that you will always have plenty of opportunities for employment. >> This is not the reality. Ageism exist...
by bdpb
Tue Mar 07, 2017 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 4807

Re: Taxable investment plan for kids college

If both of you are educated why not just gift the maximum per year PER PERSON to each kid in a 529 plan then any extra put in taxable? If you are educated your kids are going to college. Going forward I am not sure what reasonable jobs there will be for folks who don't go to college unless they do ...
by bdpb
Fri Mar 03, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Need help rebalancing Roth IRA, SEP-IRA and Taxable account
Replies: 3
Views: 517

Re: Need help rebalancing Roth IRA, SEP-IRA and Taxable account

Too complicated. No need for sector funds. Virtually no value in splitting growth and value. Your wife's accounts should be included to look at everything as one portfolio. You may well find only one low ER fund in her 403b/iPP. I would simplify and hold no more than maybe a half dozen funds or so. ...
by bdpb
Fri Mar 03, 2017 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: 40 year old Investing for the 1st time - How am I doing?
Replies: 22
Views: 2451

Re: 40 year old Investing for the 1st time - How am I doing?

Thank you BDPB. I'll take a closer look at those income limits. If I do in fact fall under the limit, does that mean that both my wife and myself can each contribute separately to our ROTH IRA accounts or is it a single contribution given that we are Married Filing Jointly? IRA accounts are owned b...
by bdpb
Fri Mar 03, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: 40 year old Investing for the 1st time - How am I doing?
Replies: 22
Views: 2451

Re: 40 year old Investing for the 1st time - How am I doing?

If his income is 220K, that would put him OVER the Roth limit of $184K for MFJ I thought? The Roth limit is based on MAGI. The OP's gross income is 220k. 220,000 gross income +???????? other income, dividends, etc. -36,000 401k contributions -???????? pre-tax health, dental premiums, FSA contributi...
by bdpb
Thu Mar 02, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: 40 year old Investing for the 1st time - How am I doing?
Replies: 22
Views: 2451

Re: 40 year old Investing for the 1st time - How am I doing?

Tax Filing Status: Married Filing Jointly. Current joint annual Gross income is 220K. Tax Rate: 28% Federal, 3.75% State (honestly this is an educated guess but not entirely sure) State of Residence: IL Current 529 Plan assets - ~56K total 100% Index Age Based 0-6 years portfolio (0.17%) Contributi...
by bdpb
Mon Feb 27, 2017 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: New Member Here, Looking for some suggestions
Replies: 24
Views: 2596

Re: New Member Here, Looking for some suggestions

I went through and have adjusted my payments going forward to strictly minimum (except the mortgage because its a pain and I don't have an extra payment until June) I have reallocated those extra payments and my increase from my yearly raise, to the highest interest rate loan, up to approximately $...
by bdpb
Sun Feb 26, 2017 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: New Member Here, Looking for some suggestions
Replies: 24
Views: 2596

Re: New Member Here, Looking for some suggestions

Vehicles: 2015 Toyota $704/month $29022 of original $41699 2.99% (plan to own till it dies, still stupid) 2013 Kia Forte $368/month $6691 of original $21,000 5.02% (refinanced to get title quickly didn't shop around wasn't bright) again, plan to keep to drive till it dies. Consider refinancing thes...
by bdpb
Fri Feb 24, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Another Use Bonus to Invest or Pay Off Debt Question
Replies: 14
Views: 1412

Re: Another Use Bonus to Invest or Pay Off Debt Question

It seems like the consensus so far seems to be to contribute to the Roth and use the remainder to make loan payments for a year and maybe pay off the car note. Would it make a difference if I always had the ability to do a mega backdoor Roth by making after tax contributions and immediate rollover ...
by bdpb
Thu Feb 23, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: My Choice to Fund Roths over 403(b)
Replies: 14
Views: 1008

Re: My Choice to Fund Roths over 403(b)

You should also consider your state taxes. If you are in a high income tax state and plan on moving to a low income tax state or will retire in a state that does not tax IRA withdrawals (maybe the same state) then it might make sense to change some of your Roth contributions to deductible IRA contri...
by bdpb
Thu Feb 23, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: How is my Boglehead Progress going??
Replies: 6
Views: 1269

Re: How is my Boglehead Progress going??

Tax Rate: 15% Federal, 3.75% State State of Residence: IL I get very close to the max in both my 403b and 457bs while maxing out His and Her Roths. You could potentially save over $400 in IL state taxes by contributing to Traditional tax deductible IRAs and converting to Roth IRAs. The state of IL ...
by bdpb
Sat Feb 18, 2017 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice regarding placement of bonds
Replies: 11
Views: 1232

Re: Portfolio advice regarding placement of bonds

401k (1.5% asset based fee) 31% Large Cap (MXVIX) (ER 0.6) 7% Mid Cap (MXMDX) (ER 0.6) 7% Small Cap (MXISX) (ER 0.6) 13% International (MXINX) (ER 0.7) You are getting egregiously ripped off in your 401k. Must be a small company and the 401k provider is in cahoots with company owners. You should sp...