Search found 4923 matches

by lakpr
Mon May 25, 2020 8:56 am
Forum: Personal Investments
Topic: Portfolio Review
Replies: 5
Views: 430

Re: Portfolio Review

I notice that you do not have a good bond fund in His current 401k, but do have VBTIX accessible in His Previous 401k. Also that you have 14% of the portfolio in His Previous 401k. I suggest you shift the entire money in the previous 401k to VBTIX. If your desired allocation is 80:20, you can have u...
by lakpr
Mon May 25, 2020 8:35 am
Forum: Personal Investments
Topic: Inheriting an IRA this year
Replies: 8
Views: 478

Re: Inheriting an IRA this year

Ok I will confess the only reason I didn't do a backdoor Roth was because I didn't really fully evaluate it as equal to or greater than taxable. Not sure why. So, obviously my situation calls for it, in general. Now, I already filed 2019 taxes and was lucky/unfortunate enough to have a low tax year...
by lakpr
Sun May 24, 2020 6:09 pm
Forum: Personal Investments
Topic: where to park $150k?
Replies: 5
Views: 690

Re: where to park $150k?

With only 2 to 3 years left before you WILL have a need to tap the funds, the only investments I would suggest would be CDs and high yield savings accounts. You can park $100k of that at Merrill Edge in an Ultra-short term bond fund / money market fund, and earn Platinum Honors status and enjoy the ...
by lakpr
Sun May 24, 2020 6:07 pm
Forum: Personal Investments
Topic: Can I open a Roth IRA
Replies: 9
Views: 465

Re: Can I open a Roth IRA

I am aware that I have to file taxes married filing jointly in order to contribute to a roth ira. This year we did married filing seperately. Can I open one now as long as I file jointly next year or do I have to wait? If you do NOT have any Traditional IRA (or to be more precise, $0 in total in al...
by lakpr
Sun May 24, 2020 5:28 pm
Forum: Personal Investments
Topic: When to start investing again?
Replies: 11
Views: 1054

Re: When to start investing again?

The standard advice from Bogleheads is to ignore what the market is doing, and invest everything at once. If you are not able to do that, then get back into the market (dollar-cost average) over no more than 1 year. The motto is "Yesterday was a good day, but today is the best day to invest" (I am p...
by lakpr
Sun May 24, 2020 2:26 pm
Forum: Personal Investments
Topic: Backdoor Roth simple question
Replies: 23
Views: 1076

Re: Backdoor Roth simple question

This conversation has been enlightening, and it's great to get even more in depth into this. one can convert money from a traditional IRA to a Roth IRA at any time. I guess we're getting more into the nuances, but this begs another question from my side: Would backdoor also be a method to bypass th...
by lakpr
Sun May 24, 2020 12:34 pm
Forum: Personal Investments
Topic: Retirement Portfolio Overhaul - Guidance on Proposed Revised Allocations
Replies: 10
Views: 805

Re: Retirement Portfolio Overhaul - Guidance on Proposed Revised Allocations

Question regarding the wash-sale concern referenced above : For the purposes of wash-sale, would FXAIX, VTSAX and VFFSX be considered the same type of funds? Right now, per the suggestions given, I am thinking VTSAX (and VTIAX) in taxable accounts and FXAIX/VFFSX (and VBTLX) in tax-deferred/tax-adv...
by lakpr
Sun May 24, 2020 12:17 pm
Forum: Personal Investments
Topic: When I start doing a Roth Conversion...
Replies: 22
Views: 1205

Re: When I start doing a Roth Conversion...

Ok, but then I was reading more on doing the Roth Conversion and saw this on ERN's site: https://earlyretirementnow.com/2016/07/13/that-sneaky-30-federal-income-tax-bracket/ I'm a bit confused by his post, but it seems that the conversion, even at a 15% tax bracket could cause a 30% tax payment. Wh...
by lakpr
Sat May 23, 2020 9:07 pm
Forum: Personal Investments
Topic: Portfolio advice
Replies: 4
Views: 450

Re: Portfolio advice

What is your tax situation looking like? Are you taking standard deduction or itemizing? I was going to suggest pay off your primary home mortgage. A 3% guaranteed return is not something you can get nowadays in the Total bond market. Treat the mortgage as a negative bond that it is. Rather than inv...
by lakpr
Sat May 23, 2020 8:54 pm
Forum: Personal Investments
Topic: How to create 60/40 portfolio?
Replies: 9
Views: 1348

Re: How to create 60/40 portfolio?

I would suggest investment of your money market fund that is earning 0.027%, into Vanguard Target Retirement Income fund. It is a fund that invests in a 30% stocks, 70% bonds blend. It is a slightly more addition of stocks to your portfolio (your current portfolio is 14:86 blend, you will move appro...
by lakpr
Sat May 23, 2020 8:22 pm
Forum: Personal Investments
Topic: Backdoor Roth simple question
Replies: 23
Views: 1076

Re: Backdoor Roth simple question

Thanks for all the insight! It's bringing a lot more clarity but obviously there are a lot of complexities and it's maybe not a simple answer. Can I put out a hypothetical situation that is has a lot of parallels with my own? (but trying to simplify things too) An individual is self employed, and h...
by lakpr
Sat May 23, 2020 8:04 pm
Forum: Personal Investments
Topic: Traditional 401k and Roth 401k Combination?
Replies: 20
Views: 691

Re: Traditional 401k and Roth 401k Combination?

Have you looked into whether your plan offers after tax 401k and the megabackdoor Roth? That would allow you to continue maxing the Traditional 401k while allowing additional savings into Roth. Even if it does (offer Mega Backdoor Roth), it still makes sense for the OP to max Roth 401k first. The O...
by lakpr
Fri May 22, 2020 6:30 pm
Forum: Personal Investments
Topic: Has anyone ever used their Emergency Fund?
Replies: 79
Views: 5503

Re: Has anyone ever used their Emergency Fund?

I have. Why do you ask? PJW As I consider beefing up my Emergency Fund, I can't help but to think about the opportunity cost associated with not investing that additional cash in the market. So am trying to strike that balance between securing enough cash in case of an emergency vs. putting that ca...
by lakpr
Fri May 22, 2020 6:13 pm
Forum: Personal Investments
Topic: Has anyone ever used their Emergency Fund?
Replies: 79
Views: 5503

Re: Has anyone ever used their Emergency Fund?

Yes, twice. In 2001 I lost my job for about 6 months before I found a new one. Also in 2006 my wife had a very complicated pregnancy, the medical bills were huge, something like $240k in 2006 dollars, and my co-pay obligation itself was something like $18k. I had depleted my EF to pay those off, the...
by lakpr
Fri May 22, 2020 6:09 pm
Forum: Personal Investments
Topic: Superfund 529 plan right now?
Replies: 11
Views: 1062

Re: Superfund 529 plan right now?

Paying down your mortgage could get you GUARANTEED returns on that money. At the same time, with the Covid-19 crisis, I suggest you beef up your emergency fund to at least 1 year. 6-month EF is not really going to cut it ... I had 6 months EF too, but suddenly feel that's not going to be enough. It ...
by lakpr
Fri May 22, 2020 6:06 pm
Forum: Personal Investments
Topic: Bad bond fund in 401k?
Replies: 9
Views: 442

Re: Bad bond fund in 401k?

If you still have any mortgage amount left, I would suggest you forego the bond fund completely whether in taxable or 401k, and think about paying the mortgage down. A mortgage is a negative bond. And likely to be carrying higher rate than whatever bond fund you are interested in might be yielding. ...
by lakpr
Fri May 22, 2020 5:50 pm
Forum: Personal Investments
Topic: How to invest Inherited IRA
Replies: 12
Views: 578

Re: How to invest Inherited IRA

Thanks everyone! We are both in our late 30s. We currently dont max all space in pretax accounts. We have little to no need to use this money short term. If this is indeed the case, then you have an excellent opportunity to "stretch" this inherited IRA. Indirectly. Max out all your pre-tax accounts...
by lakpr
Fri May 22, 2020 5:47 pm
Forum: Personal Investments
Topic: Rollover or Traditional IRA
Replies: 11
Views: 341

Re: Rollover or Traditional IRA

There’s not a new employer. She is currently not working. Seems like traditional IRA is best if we are approaching the Roth limits in the future? It won't matter if it's classified as a Rollover or Traditional IRA for purposes of Roth contributions when you're over the income limit, because both wi...
by lakpr
Fri May 22, 2020 4:33 pm
Forum: Personal Investments
Topic: Rollover or Traditional IRA
Replies: 11
Views: 341

Re: Rollover or Traditional IRA

There’s not a new employer. She is currently not working. Seems like traditional IRA is best if we are approaching the Roth limits in the future? It won't matter if it's classified as a Rollover or Traditional IRA for purposes of Roth contributions when you're over the income limit, because both wi...
by lakpr
Fri May 22, 2020 4:31 pm
Forum: Personal Investments
Topic: Retirement Portfolio Review
Replies: 6
Views: 616

Re: Retirement Portfolio Review

Your Traditional IRA total percentage adds up to 38%. Let it be the repository for all the bonds in your allocation. Along with the 10.84% in TIAA Traditional, your overall fixed income allocation would become 52:48. You have a little smattering of bonds in your taxable and also as part of the Vangu...
by lakpr
Fri May 22, 2020 4:01 pm
Forum: Personal Investments
Topic: Rollover or Traditional IRA
Replies: 11
Views: 341

Re: Rollover or Traditional IRA

Please read the last two sentences in @tashnewbie's response VERY CAREFULLY!!. If your combined income is anywhere near $196k (and will be expected to be so in future years, inflation-adjusted), then you are better off NOT rolling over this 401k into Rollover IRA. Roll the money into the 401k plan i...
by lakpr
Fri May 22, 2020 3:12 pm
Forum: Personal Investments
Topic: How to invest Inherited IRA
Replies: 12
Views: 578

Re: How to invest Inherited IRA

Since the inherited IRA has to be emptied within 10 years, and withdrawal from it is going to be taxed at CURRENT marginal tax income, the first thing one should do is to squash the growth completely in it. Make the Inherited IRA the repository for the maximum bond funds that your allocation dictate...
by lakpr
Fri May 22, 2020 3:05 pm
Forum: Personal Investments
Topic: Move Total International from Roth IRA to 401k/403b?
Replies: 20
Views: 639

Re: Move Total International from Roth IRA to 401k/403b?

Intl for me is in taxable to get the foreign tax credit. As far as the Roth, the expected return on Intl is much higher than domestic if you believe in that whole reversion to the mean, but again, foreign tax credit. Does the benefit of having the foreign tax credit apply when it's time to liquidat...
by lakpr
Fri May 22, 2020 2:41 pm
Forum: Personal Investments
Topic: Is Vanguard's Personal Advisor Service Worth It???
Replies: 39
Views: 3089

Re: Is Vanguard's Personal Advisor Service Worth It???

Is a personal trainer worth the extra money? :D I Yes, if you will not followup and do what is needed on your own, a trainer will definitely help. No, if you will just question what they suggest, as you read on a blog how a new excercise is all the rage LOL, but sir, you hit the nail on the head pr...
by lakpr
Fri May 22, 2020 2:35 pm
Forum: Personal Investments
Topic: Current 401k contributions?
Replies: 10
Views: 789

Re: Current 401k contributions?

I posted this in another thread, but sounds like it's something that @Frugalbear is looking for: I had an epiphany, with this Covid-19 crisis. Prior to February, I was happily getting along, with 6 months expenses as emergency fund, and maximizing all my tax-advantaged space first. But suddenly this...
by lakpr
Fri May 22, 2020 1:14 pm
Forum: Personal Investments
Topic: When I start doing a Roth Conversion...
Replies: 22
Views: 1205

Re: When I start doing a Roth Conversion...

E-Trade is really the best choice for Solo 401k plans, as they would not only accept rollover from external IRA and other tax-deferred vehicles, but also allow you to make in-plan Roth conversions. As @terran said, proceed to migrate the SEP-IRA funds immediately into the Solo 401k plan. You can als...
by lakpr
Fri May 22, 2020 12:21 pm
Forum: Personal Investments
Topic: When I start doing a Roth Conversion...
Replies: 22
Views: 1205

Re: When I start doing a Roth Conversion...

My husband and I both have SEP IRAs (that we don't contribute to anymore bc we opened solo 401ks instead) and Roth IRAs. Now what? Where, I mean with which custodian, did you open the Solo 401k with? I was going to suggest simply roll the SEP-IRA to the Solo 401k, but that's possible only if the cu...
by lakpr
Fri May 22, 2020 12:15 pm
Forum: Personal Investments
Topic: Combine 401k Accounts?
Replies: 8
Views: 349

Re: Combine 401k Accounts?

Depends on the fees and if new employer allows incoming transfers. One thought is that she could use the old 401(k) holding bonds only and have the new 401(k) with 100% equities. As she needs more bonds, she would sell equities on the old 401(k) to rebalance. Without not knowing what funds and fees...
by lakpr
Fri May 22, 2020 8:14 am
Forum: Personal Investments
Topic: What to do with cash?
Replies: 29
Views: 4002

Re: What to do with cash?

I will echo the calls to beef up the emergency fund first. I had an epiphany, with this Covid-19 crisis. Prior to February, I was happily getting along, with 6 months expenses as emergency fund, and maximizing all my tax-advantaged space first. But suddenly this crisis hit, my portfolio took a 27% t...
by lakpr
Fri May 22, 2020 7:54 am
Forum: Personal Investments
Topic: Is Vanguard's Personal Advisor Service Worth It???
Replies: 39
Views: 3089

Re: Is Vanguard's Personal Advisor Service Worth It???

Search the site for prior threads on this topic, which are plentiful. Portfolios suggested by PAS vary with client objectives and risk tolerance, and are not all identical despite statements you'll read to the contrary, often from the same misinformed people who offer to anonymously advise you for ...
by lakpr
Fri May 22, 2020 7:38 am
Forum: Personal Investments
Topic: Funds Advise
Replies: 2
Views: 165

Re: Funds Advise

Without showing the available fund choices in His and Her 401k plans, how can we advise what funds to use to lower your stock exposure? I also notice that you are invested in FXAIX and VTI, choose one or the other, they both have identical performance. One is a S&P500 stock mutual fund, the other on...
by lakpr
Thu May 21, 2020 7:15 pm
Forum: Personal Investments
Topic: Retirement Portfolio Overhaul - Guidance on Proposed Revised Allocations
Replies: 10
Views: 805

Re: Retirement Portfolio Overhaul - Guidance on Proposed Revised Allocations

That mortgage interest rate at 4% is also quite high. I bet you are using Standard Deduction on your tax returns (the interest even at 4% on $280k balance is not enough to overcome a $14,400 deficit between standard deduction amount and $10k cap on SALT). In other words, carrying the mortgage at 4% ...
by lakpr
Thu May 21, 2020 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance break even
Replies: 30
Views: 1618

Re: Refinance break even

In my neck of the woods, a jumbo mortgage for 1.25 million has a minimum refinance rate of 3.875%. That fact alone makes me think, @Abk911, that you should grab this offer. $500 application fee is not much to grab a reduction of 0.375% for 30 years.
by lakpr
Thu May 21, 2020 6:32 pm
Forum: Personal Investments
Topic: Signature FCU IRA Savings Rate 1.75%
Replies: 5
Views: 330

Re: Signature FCU IRA Savings Rate 1.75%

Not the answer you are looking for, but locking up your money meant for retirement in a Savings account does not make sense. It should be invested in the market. UNLESS you are already retired and looking for safety of principal, of course. In which case, 1.75% is really an excellent rate. I am not ...
by lakpr
Thu May 21, 2020 6:29 pm
Forum: Personal Investments
Topic: Retirement Portfolio Overhaul - Guidance on Proposed Revised Allocations
Replies: 10
Views: 805

Re: Retirement Portfolio Overhaul - Guidance on Proposed Revised Allocations

To answer your last question: if you are truly in the 24% tax bracket (with adjusted gross income > $206k), NEITHER of you is eligible to contribute to a Roth IRA directly. Who is the owner of the Traditional IRA? If it is you, can you roll that Traditional IRA into your workplace 401k plan? Most im...
by lakpr
Wed May 20, 2020 8:16 pm
Forum: Personal Investments
Topic: Inheriting an IRA this year
Replies: 8
Views: 478

Re: Inheriting an IRA this year

Any particular reason why you "don't do backdoor Roth" ? This inheritance might be the push you need to put in $12k each (for 2019 and 2020), so that' takes $24k either off your taxable investments or your inheritance. Then it would $6k each starting in 2021. If a Traditional IRA is standing in the ...
by lakpr
Wed May 20, 2020 7:02 pm
Forum: Personal Investments
Topic: John Handcock 401k vs Taxable Vanguard
Replies: 3
Views: 216

Re: John Handcock 401k vs Taxable Vanguard

With a 32% tax bracket, you need all the tax advantaged space you can get. I know that the 1+% expense ratios hurt, but look for the cheapest option in the portfolio and invest ONLY in that one fund. If that's S&P 500, so be it. You might also want to look at any Stable Value Fund that's offered wit...
by lakpr
Wed May 20, 2020 6:48 pm
Forum: Personal Investments
Topic: Make My Portfolio for me! :)
Replies: 14
Views: 1119

Re: Make My Portfolio for me! :)

I think you can skip bonds for the next 5 months, and pay off that car loan. With a 3.99% after-tax interest rate, it's the equivalent of earning 3.99/0.78 (assuming even a 12% Federal + 9% state tax rate) = 5.12% CD but whose interest is taxable income. If you are paying $240 per month and outstand...
by lakpr
Wed May 20, 2020 6:38 pm
Forum: Personal Investments
Topic: Inheriting an IRA this year
Replies: 8
Views: 478

Re: Inheriting an IRA this year

I will soon inherit about 100k in a traditional IRA from a relative (I'm the executor but the IRA itself is TOD). The decedent is 20 yrs older than me and I'm not covered by any of the qualified circumstances to enable a stretch. What is the boglehead consensus/recommendation on what to do regardin...
by lakpr
Wed May 20, 2020 5:09 pm
Forum: Personal Investments
Topic: Move Total International from Roth IRA to 401k/403b?
Replies: 20
Views: 639

Re: Move Total International from Roth IRA to 401k/403b?

For what it is worth -- I am of the opinion too that international equities are NOT likely to outperform US equities in the near future. All my international stocks are held in the 401k plan. I confessed in other previous posts too, that my international allocation is only 20% of my stocks allocatio...
by lakpr
Wed May 20, 2020 5:03 pm
Forum: Personal Investments
Topic: Should I refinance?
Replies: 6
Views: 615

Re: Should I refinance?

You might want to ask the lender if it's possible to "recast" the mortgage, this usually can be accomplished for a fee of about $200 to $250. It will amortize the remainder of the loan over the remainder of the term. Given that this is a 7/1 ARM, and 4 years old, you have 26 years left to repay $235...
by lakpr
Wed May 20, 2020 4:18 pm
Forum: Personal Investments
Topic: Should I refinance?
Replies: 6
Views: 615

Re: Should I refinance?

I vote for not refinancing. The difference in interest rates that you have now (3.15%) and the new interest rate (2.875%) is too small. The other 7/1 ARM interest rate you proposed has very high closing costs that you might as well make a pre-payment for that amount to your existing mortgage and com...
by lakpr
Wed May 20, 2020 2:45 pm
Forum: Personal Investments
Topic: New Here Where To Put My Money
Replies: 19
Views: 1600

Re: New Here Where To Put My Money

What makes a withdrawal qualified in a Roth IRA? https://www.investopedia.com/roth-ira-withdrawal-rules-4769951 Qualified Distributions Qualified distributions are tax-free and penalty-free. As far as the IRS is concerned, a Roth IRA distribution is considered qualified if your account meets the 5-...
by lakpr
Wed May 20, 2020 11:50 am
Forum: Personal Investments
Topic: r401K one time vs reoccurring roll over
Replies: 9
Views: 497

Re: r401K one time vs reoccurring roll over

[ Side note and/or clarification: the amounts you contributed to after-tax 401k and converted to Roth 401k/Roth IRA, or even to Roth 401k that's rolled over to Roth IRA, are direct contributions, you made those contributions after paying taxes, so this 5-year rule does not apply. For the 5-year to ...
by lakpr
Wed May 20, 2020 8:20 am
Forum: Personal Investments
Topic: r401K one time vs reoccurring roll over
Replies: 9
Views: 497

Re: r401K one time vs reoccurring roll over

Will reply below however the root question i had still has gone unanswered. After 10 years, are the roth 401k gains that are rolled to rira accessible after 5 years? If by this question you mean tax-free and penalty-free, NO. Note that when deciding to withdraw from a Roth IRA, *ALL* your Roth IRAs...
by lakpr
Tue May 19, 2020 3:43 pm
Forum: Personal Investments
Topic: Starting my investment career
Replies: 11
Views: 909

Re: Starting my investment career

I am glad that my hunch proved right. It is better to at least be warned up front about the potential tax bombs, especially when dealing with tax regimes of two different countries. What's right for a US citizen, is going to be completely wrong for a non-US citizen. In your case, IF you have funds t...
by lakpr
Tue May 19, 2020 1:35 pm
Forum: Personal Investments
Topic: Work Stock - To Sell Now or Wait...
Replies: 18
Views: 1647

Re: Work Stock - To Sell Now or Wait...

I don't believe this is entirely accurate. At least for me, when I am issued RSUs they do not show up in my taxable account as actual shares. I don't actually "own" the shares until they vest - essentially these shares don't exist in your ownership until they vest. Sure, if one were to acquire addi...
by lakpr
Tue May 19, 2020 1:01 pm
Forum: Personal Investments
Topic: Work Stock - To Sell Now or Wait...
Replies: 18
Views: 1647

Re: Work Stock - To Sell Now or Wait...

Vested shares went up over 15% today. Took it as a sign to sell all now and move into my taxable account current set of Vanguard index ETFs, using loss to help with taxes and moving on. And to your pointC, ValueThinker, i have a bunch of RSUs still... Many, many thanks all! I would have recommended...
by lakpr
Tue May 19, 2020 11:35 am
Forum: Personal Investments
Topic: Total world vs total us + international
Replies: 23
Views: 1313

Re: Total world vs total us + international

lakpr, could you give a reference for the paper you mention? I’m reading some of Vanguard’s position papers and I haven’t come across the numbers you cite. https://personal.vanguard.com/pdf/icriecr.pdf The paper is a bit old, 2012. I came across this document from one of the posts of a frequent pos...
by lakpr
Tue May 19, 2020 9:37 am
Forum: Personal Investments
Topic: r401K one time vs reoccurring roll over
Replies: 9
Views: 497

Re: r401K one time vs reoccurring roll over

Way too many questions ... some of those cannot be answered without additional information. 1. It appears that your plan allows unlimited In Plan Roth Rollover (IRRs) of the after-tax amount, correct? 2. There is no fee to do an IRR, correct? 3. It appears that your plan also allows rollover of afte...