Search found 5970 matches

by lakpr
Mon Sep 28, 2020 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab closed my checking $0 account without a warning. Is that common?
Replies: 26
Views: 2224

Re: Schwab closed my checking $0 account without a warning. Is that common?

I have an account with a bank in my home town that has exactly $1 in it at all times, except for the dollar I automatically push from my main account at another institution each month and automatically pull to that same institution a couple days later. I keep the account because it allows me to eas...
by lakpr
Mon Sep 28, 2020 9:39 am
Forum: Personal Investments
Topic: Back Door Roth
Replies: 9
Views: 554

Re: Back Door Roth

So if you can get all your IRA $ into a company sponsored 401K, you can contribute to a ROTH IRA regardless of income limits just a little paperwork? And of course the excess $12,000 cash after making out both 401ks. Correct. Just a quibble about the language, you are not "contributing" to a Roth I...
by lakpr
Mon Sep 28, 2020 9:15 am
Forum: Personal Investments
Topic: Are 401(k) plans required to allow you to transfer out rolled over assets?
Replies: 15
Views: 981

Re: Are 401(k) plans required to allow you to transfer out rolled over assets?

fortunefavored, which rollover were you talking about? Lakpr is talking about rolling into the 401k. I'm talking about rolling it back out. Outbound from the 401k is the issue - I know they allow inbound, since they are eager to collect their 2.x% fees on more money. :) I'll see if I can get the fu...
by lakpr
Mon Sep 28, 2020 8:11 am
Forum: Personal Investments
Topic: Are 401(k) plans required to allow you to transfer out rolled over assets?
Replies: 15
Views: 981

Re: Are 401(k) plans required to allow you to transfer out rolled over assets?

I'm not sure it would matter if you do an indirect rollover? If you call them up and they send you a check, and you immediately deposit in a qualified plan, the deed is done with no tax/penalties? Now this is really beyond my expertise.. :) I am not sure an indirect rollover is even allowed for an ...
by lakpr
Sun Sep 27, 2020 11:06 pm
Forum: Personal Finance (Not Investing)
Topic: How to get company 401K matching after maxed out
Replies: 25
Views: 2846

Re: How to get company 401K matching after maxed out

Once again, you assumed that I said somewhere, that one should not input all information from the W2 to Turbotax. Can you point where I said that?

Don't put words in my mouth that I haven't even said and accuse me first of tax fraud, then of dishonest behavior. It gets tiring after a while.
by lakpr
Sun Sep 27, 2020 9:42 pm
Forum: Personal Investments
Topic: Are 401(k) plans required to allow you to transfer out rolled over assets?
Replies: 15
Views: 981

Re: Are 401(k) plans required to allow you to transfer out rolled over assets?

Hi @fortunefavored, that was my sentence you were quoting. For what it is worth, this is the language in my plan's Summary Plan Description Document: Rollover contributions In order to allow you consolidate your retirement savings for more effective management, as a participant you may transfer mone...
by lakpr
Sun Sep 27, 2020 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: How to get company 401K matching after maxed out
Replies: 25
Views: 2846

Re: How to get company 401K matching after maxed out

I am going to address a few questions that were prompted by my post. FIRST AND FOREMOST, I want to make it clear that I take the position: that which is not explicitly prohibited, is implicitly allowed. Do you agree with me or no? If you do not agree with this position, please do not read further, a...
by lakpr
Sun Sep 27, 2020 1:12 pm
Forum: Personal Investments
Topic: 529 vs taxable
Replies: 4
Views: 359

Re: 529 vs taxable

@Alison212, Let me welcome you to the forum; I see that this is your first post, but joined almost two years ago. Happy de-lurking! You said you are in the highest tax bracket. By extension, that means that your kids have a very small, infinitesimal (but non-zero) chance of getting any financial aid...
by lakpr
Sun Sep 27, 2020 7:02 am
Forum: Personal Finance (Not Investing)
Topic: How to get company 401K matching after maxed out
Replies: 25
Views: 2846

Re: How to get company 401K matching after maxed out

Does your new employer offer a match on Roth-401k contributions? If so, do the Roth 401k contributions until the end of the year. There is no mechanism to undo the 401k contributions that are made in excess, if you or your employer(s) do not take steps to correct them before tax deadline. Your alter...
by lakpr
Sat Sep 26, 2020 8:14 pm
Forum: Personal Investments
Topic: Is this a perfect time to pile into a 3% yield, net of fees, stable value fund?
Replies: 21
Views: 3211

Re: Is this a perfect time to pile into a 3% yield, net of fees, stable value fund?

With the Fed's promise that the interest rates would be held down for at least into 2023, if you have access to the 3% yield in the 401k plan you can be all over it at least until the end of 2023.
by lakpr
Sat Sep 26, 2020 4:54 pm
Forum: Personal Investments
Topic: rollover mistake - cancel possible?
Replies: 17
Views: 1608

Re: rollover mistake - cancel possible?

Note the "$442k - 30 * $6k = $262k" is also not right since you have to subtract out the basis of the reinvested divs that you already paid tax on (see the wiki for the formula). True. But truly, the calculations were meant to be an approximate, back-of-the-envelope calculations. Not a research pro...
by lakpr
Sat Sep 26, 2020 1:11 pm
Forum: Personal Investments
Topic: rollover mistake - cancel possible?
Replies: 17
Views: 1608

Re: rollover mistake - cancel possible?

Thanks for the detailed analysis, lakpr. That helps to put things in perspective. As a minor factor, annual 401k contribution over the course of 30 years will bump up the fee amount by ~$40 annually. (Assume 20k annual 401k contribution * 0.2% recordkeeping fee). Probably more as the annual contrib...
by lakpr
Sat Sep 26, 2020 10:08 am
Forum: Personal Investments
Topic: rollover mistake - cancel possible?
Replies: 17
Views: 1608

Re: rollover mistake - cancel possible?

Funds rolled from external pre-tax assets into 401k plans, are *ALWAYS* distributable. In other words, if you change your mind, you can take the funds out of the plan any time you want. Only those contributions you make while being employed at that employer, including employer match, is non-distribu...
by lakpr
Sat Sep 26, 2020 8:02 am
Forum: Personal Investments
Topic: Pay more on 2.49% car loan or invest in taxable?
Replies: 33
Views: 2523

Re: Pay more on 2.49% car loan or invest in taxable?

Car loans are not tax-deductible, so that 2.49% car loan is really after-tax money. If one is in the 22% tax bracket, then paying it down is really the same as investing in a 3.2% CD; and if state taxes are also taken into consideration, more of a 3.5% CD. If a bank or credit union is offering a 3.5...
by lakpr
Fri Sep 25, 2020 7:43 pm
Forum: Personal Investments
Topic: Two 401k accounts: Previous and Current Employer
Replies: 13
Views: 679

Re: Two 401k accounts: Previous and Current Employer

Thanks Stinky, all good stuff. Since the ER (0.04%) is the same at previous employers' 401k as Vanguard, I guess I'll just let it ride. :happy I'm still trying to decide on whether to hold just one fund in each 401k account - roll VBTLX into VFIAX at previous employer's 401k and all in stocks, and ...
by lakpr
Thu Sep 24, 2020 6:13 pm
Forum: Personal Investments
Topic: Old DGI to set it and forget it FZORX and one more?
Replies: 8
Views: 463

Re: Old DGI to set it and forget it FZORX and one more?

Holding 3 funds now....must less stressful than following 10-15 stocks and checking throughout the day....every time I deposit just split it between FZROX and ITOT.....you don't recommend FZROX in the taxable too Two reasons why I don't recommend FZROX in taxable. 1. Tax efficency: Fidelity Zero fu...
by lakpr
Thu Sep 24, 2020 7:13 am
Forum: Personal Investments
Topic: Old DGI to set it and forget it FZORX and one more?
Replies: 8
Views: 463

Re: Old DGI to set it and forget it FZORX and one more?

This is exactly what I'm going to do! I want something simple and effective....I can't thank you enough for responding to my specific questions. This is what makes this community so great! Good luck! By the way, I missed stating this in my previous post. The 0% capital gains tax rate is applicable ...
by lakpr
Thu Sep 24, 2020 6:46 am
Forum: Personal Investments
Topic: Old DGI to set it and forget it FZORX and one more?
Replies: 8
Views: 463

Re: Old DGI to set it and forget it FZORX and one more?

Thank you for taking the time to respond... I don’t have access to any other plans at work, I contributed 8% to our pension plan, I’ve inquired about starting a 403b but than Covid it and I don’t think they had much interest across the board. So looking at your suggestions that I truly appreciate m...
by lakpr
Thu Sep 24, 2020 6:33 am
Forum: Personal Investments
Topic: Can I convert a 403b to a 457?
Replies: 10
Views: 780

Re: Can I convert a 403b to a 457?

Your post is simply begging the question, why not direct all future investments to the 457 plan? The benefit of the 457 plan over the 403b plan, presumably, is the ability to withdraw from it even prior to age 59.5, if you separate from that employer sponsoring the plan. If that's the benefit that y...
by lakpr
Thu Sep 24, 2020 6:14 am
Forum: Personal Investments
Topic: Old DGI to set it and forget it FZORX and one more?
Replies: 8
Views: 463

Re: Old DGI to set it and forget it FZORX and (FSMAX or FXNAX)?

If you are going to be able to invest $1000 to $1500 per month, it means you have about $12k to $18k per year income for investment in your retirement. Do you not have access to any retirement plan at work? [ You are maxing Roth-IRA per your post, and contribution to Roth IRA needs earned income, so...
by lakpr
Tue Sep 22, 2020 6:12 pm
Forum: Personal Investments
Topic: Retirement Accounts
Replies: 1
Views: 383

Re: RETIREMENT ACCOUNTS

You might want to look into Solo-401k plan, assuming you do not have any employees (other than your spouse). It would allow you to sock away $19,500 (higher limit than the SEP-IRA) as an employEE, and additional 20% of the QBI as employER. Note that you cannot contribute to both the SEP-IRA and Solo...
by lakpr
Tue Sep 22, 2020 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 4822
Views: 924410

Re: What's Your Credit Card Rewards Strategy?

I recently received an offer for a $150 bonus for signing up for the Capital One Quicksilver Card. It gives unlimited 1.5% cash back on every purchase, no annual fee, no foreign transaction fees. The lack of foreign transaction fee and extra 0.5% than what I am getting on "miscellaneous" purchases ...
by lakpr
Tue Sep 22, 2020 6:31 am
Forum: Personal Investments
Topic: Seeking Advice - Modified GB Portfolio
Replies: 5
Views: 459

Re: Seeking Advice - Modified GB Portfolio

50% to Treasuries and gold for a 31 year old sounds like a Doomsday portfolio than an age appropriate asset allocation. I would do a classic 3 fund portfolio. For a 31 year old, allocation to bonds would be Age-15 = 15% (rounded to nearest 5%) or 16% (true Age-15). Assume another 15% or 20% to inter...
by lakpr
Tue Sep 22, 2020 6:24 am
Forum: Personal Investments
Topic: Wife has 401K Required Revenue fees. Is this normal and can someone look at her fees
Replies: 5
Views: 732

Re: Wife has 401K Required Revenue fees. Is this normal and can someone look at her fees

I would view it as a 401 k plan that has no employer match, and would still max out the contributions. But of course, if there is a limit on what you can contribute to the various retirement accounts (spouse 401k, Roth IRAs, etc.) — limit on your ability to contribute, I mean, not IRS imposed limits...
by lakpr
Mon Sep 21, 2020 9:36 pm
Forum: Personal Investments
Topic: BIG portfolio change: What should I do now that I'm, well, "home-free"?
Replies: 8
Views: 2197

Re: BIG portfolio change: What should I do now that I'm, well, "home-free"?

Given that your existing portfolio, not counting the home-sale proceeds is approximately 30:70 stocks to bonds, I would suggest take the entire amount and stick it into Vanguard Target Income Retirement Fund (VTINX) which has 30:70 stocks to bonds ratio. I would try to convert to Roth-IRA some of th...
by lakpr
Mon Sep 21, 2020 9:28 pm
Forum: Personal Investments
Topic: having a good year; what to do with the money?
Replies: 11
Views: 2323

Re: having a good year; what to do with the money?

I would fund 4 years worth of tuition at your state's flagship university per kid in 529 plan(s). In today's dollars. Then assume that the growth of the account in 529 plan will equal the tuition inflation. If you are lucky (?) there will be money left over in the 529 plan that would also fund their...
by lakpr
Mon Sep 21, 2020 3:46 pm
Forum: Personal Investments
Topic: Is intermediate treasuries good as fixed income in retirement ?
Replies: 35
Views: 2722

Re: Is intermediate treasuries good as fixed income in retirement ?

That is pretty much what I Do. Each Jan. 1. I move 1 years expenses to checking and 2 years in IRA Money Market (including estimated inflation). 2. Make sure I have 2 years of expenses in short term treasuries (including estimated inflation). 3. Make sure I have at least 5 years of expenses in inte...
by lakpr
Mon Sep 21, 2020 3:26 pm
Forum: Personal Investments
Topic: Is intermediate treasuries good as fixed income in retirement ?
Replies: 35
Views: 2722

Re: Is intermediate treasuries good as fixed income in retirement ?

That, to me, seems to be an excellent plan. Yes, intermediate treasuries are as good as fixed income in retirement. The yield is low, but then you get the guarantee that you will receive all your money, Uncle Sam does not default. Not true. The United States defaulted on some Treasury bills in 1979...
by lakpr
Mon Sep 21, 2020 2:27 pm
Forum: Personal Investments
Topic: Need 529 advice
Replies: 16
Views: 1809

Re: Need 529 advice

What is your income level? If you are into the 24% marginal tax bracket, or higher, it is almost a given that your child will not receive any financial aid, and even if she does it will be in the form of loans. Better to load the 529 plan and use it for educational expenses, and let your child gradu...
by lakpr
Mon Sep 21, 2020 2:13 pm
Forum: Personal Investments
Topic: Portfolio review - more checking on asset allocation
Replies: 11
Views: 1188

Re: Portfolio review - more checking on asset allocation

Roth IRA - 6K or as much as I can (one year was over income max). I wait until I get taxes back in March to make contributions for prior year, which I know isn't ideal. Please look into the Backdoor Roth . In this process, you make a non-deductible contribution to a Traditional IRA (no income limit...
by lakpr
Mon Sep 21, 2020 2:03 pm
Forum: Personal Investments
Topic: Portfolio review - more checking on asset allocation
Replies: 11
Views: 1188

Re: Portfolio review - more checking on asset allocation

I will add one comment. You are maximizing the 403b and 457b plans, both of them. One of them Traditional, and the other Roth. I wish you would have chosen the Roth for 403b and Traditional for 457b plans. The deal with the 457b plans is that you are able to withdraw from that plan, at any age; the ...
by lakpr
Mon Sep 21, 2020 1:45 pm
Forum: Personal Investments
Topic: Portfolio review - more checking on asset allocation
Replies: 11
Views: 1188

Re: Portfolio review - more checking on asset allocation

joetro29 wrote: Sun Sep 20, 2020 11:47 pm Wish Fidelity had a total stock market index.
It does, ticker is FSKAX. Fidelity also has the Zero version of the total stock market index fund, FZROX.
by lakpr
Mon Sep 21, 2020 1:09 pm
Forum: Personal Investments
Topic: IRA Withdrawl question
Replies: 6
Views: 598

Re: IRA Withdrawl question

As mentioned by @delamer, the 401k RMD and the IRA RMD are separate, and both must be taken once the participant (your mom) reaches the age of 72. I would suggest at this age, if she is looking to put some money into an IRA, let that be Roth IRA. No RMDs from Roth IRA. I'd let the 401k money be in w...
by lakpr
Mon Sep 21, 2020 12:12 pm
Forum: Personal Investments
Topic: Is intermediate treasuries good as fixed income in retirement ?
Replies: 35
Views: 2722

Re: Is intermediate treasuries good as fixed income in retirement ?

That, to me, seems to be an excellent plan. Yes, intermediate treasuries are as good as fixed income in retirement. The yield is low, but then you get the guarantee that you will receive all your money, Uncle Sam does not default.
by lakpr
Mon Sep 21, 2020 10:15 am
Forum: Personal Investments
Topic: International out of Roth
Replies: 5
Views: 536

Re: International out of Roth

My philosophy is to keep only those asset classes that have the highest expected returns (expected, not necessarily realized) returns in the Roth IRA. Given that my expectation for international equities to under-perform the US equities at least over the near term (5 to 7 years into the future), I p...
by lakpr
Fri Sep 18, 2020 10:45 am
Forum: Personal Investments
Topic: Newbie needing some help with a rebalance
Replies: 4
Views: 425

Re: Newbie needing some help with a rebalance

Couple of points. For a 39 year old, having 23% in bonds is just about in the ballpark. I usually use the thumb rule of "Age-15" in bonds, and perhaps "Age-20" in bonds if the poster says they would like to be aggressive. By that thumb rule, you should have 24% in fixed income. So almost spot on. Du...
by lakpr
Fri Sep 18, 2020 10:22 am
Forum: Personal Investments
Topic: Portfolio critique - mid 30s
Replies: 9
Views: 1940

Re: Portfolio critique - mid 30s

Thanks everyone for your thoughtful analysis and advice. I like the idea of getting a higher return on the non-deductible mortgage interest, while reducing my bond allocation. Will have to cash flow paying down the mortgage balance to $750K, as the taxable account has low basis positions in SPY/VOO...
by lakpr
Thu Sep 17, 2020 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Defray math enrichment program costs for minor child?
Replies: 5
Views: 577

Re: Defray math enrichment program costs for minor child?

I don't think the government mandated that the classes have to be in-person, it's just that these after-school programs are supposed to start after school hours (hence the 3 PM start time is important), and allow the parents to work at their day job (that part of it still applies, right? You won't b...
by lakpr
Thu Sep 17, 2020 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Defray math enrichment program costs for minor child?
Replies: 5
Views: 577

Re: Defray math enrichment program costs for minor child?

*IF* you enroll the child in an after-school program, where this enrichment program is offered, then you can use the Dependent Care FSA funds to pay for the program. The primary aim of the Dependent Care FSA is to make sure that the parents can work while the child is taken care of until they return...
by lakpr
Wed Sep 16, 2020 6:11 am
Forum: Personal Investments
Topic: Use Brokerage Account to Pay down mortgage OR purchase Roth IRAs
Replies: 6
Views: 455

Re: Use Brokerage Account to Pay down mortgage OR purchase Roth IRAs

For a married couple, Roth IRAs are $14,000 (assuming both are over the age of 50, and since you mentioned you are retiring within 4 years). You mention "paying down a huge chunk of mortgage", by that I assume you definitely mean more than $14k? The Roth IRA space can never be claimed back once give...
by lakpr
Wed Sep 16, 2020 3:55 am
Forum: Personal Investments
Topic: Late 30s- Portfolio Review
Replies: 12
Views: 2408

Re: Late 30s- Portfolio Review

Mortgage: Yes, my mortgage is under $700K in SD county. I've been holding off on refinancing because I would like to move to a single story home in the next 1-2 years, and keep my current home rented. Just been waiting for the housing market to come down some. I expect a large bonus/RSUs chunk of m...
by lakpr
Tue Sep 15, 2020 6:25 pm
Forum: Personal Investments
Topic: Increase 401K contributions vs start an IRA?
Replies: 25
Views: 1655

Re: Increase 401K contributions vs start an IRA?

@ ruralavalon and lakpr: Thanks for the details. Ideally, we wanted to start an IRA and a brokerage acct for my sibling with the same firm (Vanguard or Fidelity). With the taxable acct, I struggle with deciding between VTI (with Vanguard) vs. FSKAX (with Fidelity). I want the tax efficiency of ETF,...
by lakpr
Tue Sep 15, 2020 5:32 pm
Forum: Personal Investments
Topic: Tax Gain Harvesting Even w/State & Local Taxes?
Replies: 4
Views: 426

Re: Tax Gain Harvesting Even w/State & Local Taxes?

The so-called "0% long term capital gains tax bracket" is also the same bracket where you are in 12% Federal bracket. I believe that we will not see a lower tax bracket than that in our lifetime again, once the TCJA expires at the end of 2025. For this reason, I strongly recommend Roth conversions (...
by lakpr
Tue Sep 15, 2020 4:43 pm
Forum: Personal Investments
Topic: Increase 401K contributions vs start an IRA?
Replies: 25
Views: 1655

Re: Increase 401K contributions vs start an IRA?

1. Can you easily convert VTI to VTSAX once $3K minimum is reached? 2. If VTI was held in a taxable brokerage account, can you still make the conversion from VTI to VTSAX once $3K minimum is reached without any tax consequences (capital gains..etc)? 3. When purchasing an ETF like VTI, does the purc...
by lakpr
Tue Sep 15, 2020 1:04 pm
Forum: Personal Investments
Topic: Covert non-deductible IRA to Roth
Replies: 7
Views: 376

Re: Covert non-deductible IRA to Roth

Unfortunately, no. In the eyes of the IRS, all the IRAs you have are one big giant IRA (includes the non-deductible portion). When you convert to Roth, it will be deemed a proportional conversion of deductible and non-deductible IRA balances, and IRS expects tax on the conversion of deductible porti...
by lakpr
Tue Sep 15, 2020 12:49 pm
Forum: Personal Investments
Topic: Best way to build an emergency fund?
Replies: 95
Views: 6437

Re: Best way to build an emergency fund?

I thought OP was already maxing out Roth and 100% equities. Did something change or is there something else I'm missing? Additional tax advantaged space that's not used? For the past two years we've been maxing out two 401k's, a 457 (I'm a state employee and have access to both) and two back door R...
by lakpr
Tue Sep 15, 2020 12:25 pm
Forum: Personal Investments
Topic: Better late than never
Replies: 11
Views: 1826

Re: Better late than never

Turns out that my 401k does not accept IRA rollovers. Is it safe to assume that Backdoor Roth is off the table? With nearly 60% of your portfolio stuck in the Traditional IRA, I am afraid so! But we can still make good lemonade out of the lemons. It does call for a slight revamp of the portfolio. I...
by lakpr
Tue Sep 15, 2020 12:22 pm
Forum: Personal Investments
Topic: Voya 401k investment advice
Replies: 3
Views: 317

Re: Voya 401k investment advice

These are the best options that I see within your plan Voya U.S. Stock Index Portfolio - Institutional Class - 829 ($17,680.67 ) Large Cap Value 5/3/2004 0.27 0.27 American Funds American Balanced Fund® - Class R-5 - 9173 Balanced 7/26/1975 0.31 0.31 Vanguard® Mid-Cap Index Fund - Admiral™ Shares - ...
by lakpr
Tue Sep 15, 2020 10:39 am
Forum: Personal Investments
Topic: Late 30s- Portfolio Review
Replies: 12
Views: 2408

Re: Late 30s- Portfolio Review

For very high earners, it was shown that it's mathematically better to hold the bonds in taxable (because of low yields), and stocks in tax-advantaged (Roth and 401k plans) accounts. Since you are in California, it may be better if you direct your bond holdings into Vanguard California Tax Exempt mu...
by lakpr
Tue Sep 15, 2020 10:27 am
Forum: Personal Investments
Topic: Should I put some international in Roth?
Replies: 4
Views: 538

Re: Should I put some international in Roth?

My perspective: even if the expense ratio is a bit higher in the 403b, go with RERGX (after selling the taxable investments gradually with as minimum taxes as you can get it down to, perhaps over the years). Ironically, this way Uncle Sam benefits (your taxes on withdrawals from the 403b in the futu...