Search found 1505 matches

by bdpb
Fri Nov 24, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds v. Mortgage Payoff
Replies: 21
Views: 2069

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: 5358

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: 1704

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: 2816

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: 1561

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: 837

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: 746

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: 687

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: 541

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...
by bdpb
Sat Mar 11, 2017 11:55 pm
Forum: Investing - Help with Personal Investments
Topic: TSP...10 years left
Replies: 12
Views: 1899

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: 6
Views: 771

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: 513

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: 729

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: 1033

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: 1670

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: 729

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 all...
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: 4244

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: 729

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: 729

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: 4244

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: 729

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: 4244

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: 4244

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: 4244

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: 4244

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: 4244

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: 4244

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: 4244

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: 4244

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: 4244

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: 4244

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: 413

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: 2209

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: 2209

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: 2209

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: 2274

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: 2274

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: 1237

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: 798

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: 1156

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 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation (Young Fed Early Retiree)
Replies: 6
Views: 859

Re: Asset Allocation (Young Fed Early Retiree)

I'm a Fed at the start of a career looking to retire very early. I save >50% of my income and with an avg market return of 6%, I expect to retire in 10 years with a 4% SWR. I have significant assets invested for someone my age. The 4% SWR is based on a 30 year withdrawal. If you retire early you wi...
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: 1054

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...
by bdpb
Thu Feb 16, 2017 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling Over IRA to Crappy 401k in order to backdoor roth
Replies: 22
Views: 1817

Re: Rolling Over IRA to Crappy 401k in order to backdoor roth

Does either 401k provide for mega-backdoor Roth? That is, after-tax contributions and in-service distributions/in plan Roth conversion? Do that instead of taxable investing. You could also just convert the IRA to a Roth. What do you expect your retirement marginal tax bracket to be? Since you are ma...
by bdpb
Fri Feb 10, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Yearly Check-In
Replies: 8
Views: 1119

Re: New Investor Yearly Check-In

2. In order to re-balance I would make the following moves: - TSP Fund transfer 10% to G Fund (Government Bonds) - Exchange all 20% in Roth IRA from VFFVX to Admiral Shares of VTSAX - Hold remaining funds in TSP of a C to S ratio of 4:1 resulting in 53% C Fund and 17% S Fund. No International? Put ...
by bdpb
Wed Feb 08, 2017 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation percentages
Replies: 9
Views: 974

Re: Asset Allocation percentages

When I hooked up with Vanguard they suggested a 70/30 stock/bond split with: 34% large 15% small/mid 21% international 24% Intermediate term bond 6% International bond My portfolio is spread between taxable, IRAs and a 401k. Now, one could say just make adjustments to percentages but i'm looking fo...
by bdpb
Sun Feb 05, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice.. where do I go from here?
Replies: 12
Views: 1464

Re: Portfolio Advice.. where do I go from here?

I've got an Inherited IRA of what I would consider to be in the low 6 digits and a small Roth. For the purposes of this the Roth can be ignored. It's small and really needs no attention right now, can't do much with it anyways. Our personal 401k's don't need any guidance right now. You should inclu...
by bdpb
Wed Feb 01, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice.. where do I go from here?
Replies: 12
Views: 1464

Re: Portfolio Advice.. where do I go from here?

Welcome to the forum. Today I learned that I had 24% in fund expenses!! OK. I'll guess. Did you add up all the individual fund expenses to get to 24%? If that was the approach, you may want to rethink that approach. Yes, of course, just did a "=sum(A1:A-whatever)" in excel and got the tot...
by bdpb
Wed Feb 01, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous new investor for retirement savings
Replies: 10
Views: 1415

Re: Nervous new investor for retirement savings

Set your 401k and Roth contributions to match each of your AA percentages, too. That is, 42% Fid 500, 14% Fid Ext, 14% Intl, 30% bond, (Roth: 56% US, 14% Intl, 30% bond). If you have additional taxable investing, invest in these two funds and sell a corresponding amount in 401k or Roth to buy bonds...
by bdpb
Tue Jan 31, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Health Insurance Help!
Replies: 9
Views: 895

Re: Health Insurance Help!

We are currently on my husband's health insurance plan but he is about to switch jobs to a job that does not offer health insurance (this is a temporary position that is a long term investment in his career). My health insurance is a PPO plan that has great coverage but if I receive a promotion tha...
by bdpb
Tue Jan 31, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous new investor for retirement savings
Replies: 10
Views: 1415

Re: Nervous new investor for retirement savings

I am looking for some solid, simple, strategic advice. Tax Rate: 25% Federal, 9.3% State State of Residence: California Age:30 yrs Desired Asset allocation: 70% stocks / 30% bonds - I would love some advice here. Desired International allocation: 20% of stocks - I would love some advice here. Curre...