Search found 2247 matches

by lakpr
Sat Sep 21, 2019 5:59 pm
Forum: Personal Investments
Topic: cash-out refi, investment interest expense
Replies: 5
Views: 435

Re: cash-out refi, investment interest expense

Looks very interesting, I don’t see any obvious errors in this plan. Of course the key here seems to be that you are in a 37% tax bracket plus the 3.8% NIIT, which makes the calculations yield a positive return. Didn’t exactly run these calls for a 24% bracket, so cannot say if the yield is worth th...
by lakpr
Sat Sep 21, 2019 3:12 pm
Forum: Personal Investments
Topic: New to Bogleheads
Replies: 10
Views: 582

Re: New to Bogleheads

I don’t think so (that it is a big jump in one step). Particularly since you said you feel comfortable being Age-20 to Age-10 in bonds. This Target Date fund allocation falls within those parameters, admittedly more towards the conservative side, but you can counteract with full equities in your Rot...
by lakpr
Sat Sep 21, 2019 2:40 pm
Forum: Personal Investments
Topic: Coming to the realization that Traditional is probably wiser
Replies: 14
Views: 1527

Re: Coming to the realization that Traditional is probably wiser

If the combined gross income is less than $103k, then Roth 403b is indeed the correct answer. That places this MN couple at a 12% tax bracket, which is the lowest tax bracket it has ever been in the past 40 years, and is scheduled to expire by the end of 2025. They should be paying taxes now and inv...
by lakpr
Sat Sep 21, 2019 2:26 pm
Forum: Personal Investments
Topic: Savings vs investment ratio
Replies: 4
Views: 347

Re: Savings vs investment ratio

delamer wrote:
Sat Sep 21, 2019 2:14 pm
What’s “eg”?
https://www.merriam-webster.com/dictionary/e.g.
by lakpr
Sat Sep 21, 2019 2:20 pm
Forum: Personal Investments
Topic: New to Bogleheads
Replies: 10
Views: 582

Re: New to Bogleheads

I echo livesoft’s recommendation. Choose the Vanguard Target Retirement 2030 fund for your 403b. With a 0.05 expense ratio on it, even if you opt for a slice and dice 3-fund or 4-fund portfolio, you will not gain much in the way of fund expenses, and rebalancing will be a pain. With an increasing bo...
by lakpr
Sat Sep 21, 2019 1:34 pm
Forum: Personal Investments
Topic: New work plan option help
Replies: 8
Views: 623

Re: New work plan option help

So if i rebalance myself thats all there is to it? What would you do with her old 401,roll it into this plan,roll it over to ira? Yes that is all there is to it. Yes, since you have excellent choices in the current plan, roll over your old 401k plan funds here. Consolidate and simplify. My advice w...
by lakpr
Sat Sep 21, 2019 10:30 am
Forum: Personal Investments
Topic: Is this a good portfolio mix for a retiree?
Replies: 11
Views: 1150

Re: Is this a good portfolio mix for a retiree?

If simple is the primary goal, consider these funds, which have about 50% invested in stocks: Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) Vanguard Managed Payout Fund (VPGDX) Based on the selection of ETFs in the first post, I believe the OP is looking for an index-based portfolio rat...
by lakpr
Sat Sep 21, 2019 10:10 am
Forum: Personal Investments
Topic: 401k with limited options
Replies: 5
Views: 291

Re: 401k with limited options

@Battosai28, Yes, your Option C is what I am suggesting. Once your 401k + Roth balances hit $100k, you can then start to slice and dice and see meaningful results from such allocation. Putting everything into stocks until the $100k balance is reached is to take the expressway towards that goal (with...
by lakpr
Sat Sep 21, 2019 7:48 am
Forum: Personal Investments
Topic: First time investing
Replies: 7
Views: 418

Re: First time investing

I am self employed and single and I don't have 401k, I do have roth IRA and traditional IRA account, which I do contribute every year to a vanguard fund. Then you should open up a Solo 401k for your business, to which you can contribute $19k as an employEE, and up to 25% of business profits as empl...
by lakpr
Sat Sep 21, 2019 5:57 am
Forum: Personal Investments
Topic: First time investing
Replies: 7
Views: 418

Re: First time investing

Are you single? Do you have access to a 401k? If you do, post details I would not start taxable investing without maxing out the Roth IRA first ($6k per year) and 401k ($19k per year). That is $25k per year together, and between 35% to 50% of your gross salary. I highly doubt you will have money lef...
by lakpr
Sat Sep 21, 2019 5:52 am
Forum: Personal Investments
Topic: Rebalance + Invest and leave alone for few years
Replies: 5
Views: 605

Re: Rebalance + Invest and leave alone for few years

Have you considered changing your state of residence to Nevada before you leave for Asia Pacific for 5 years? If nothing else, it will save you 9.3% on state taxes.
by lakpr
Sat Sep 21, 2019 5:45 am
Forum: Personal Investments
Topic: Anyone here has more 200k in a single stock ?
Replies: 25
Views: 2464

Re: Anyone here has more 200k in a single stock ?

You might also consider contributing some of the stock to a donor advised fund. Along with the tax savings on the gain, it can bundle years of charitable contribution into one year for deductibility. Not really disputing this advice, but if you are going to donate to DAF, it might be better to do i...
by lakpr
Sat Sep 21, 2019 5:36 am
Forum: Personal Investments
Topic: 401k with limited options
Replies: 5
Views: 291

Re: 401k with limited options

First off, you should know that the High Yield Bond funds produce that high yield because they are invested in junk (below investment grade) bonds. If the economy turns south, these high yield funds would be one of the first to lose value. The purpose of bonds in a portfolio is to reduce volatility ...
by lakpr
Fri Sep 20, 2019 8:56 pm
Forum: Personal Investments
Topic: What is the best investment strategy for low(actually ~negative vs inflation) USA interest rate environment for retireme
Replies: 9
Views: 838

Re: What is the best investment strategy for low(actually ~negative vs inflation) USA interest rate environment for reti

With only 1 million nest egg, yiu are not going to get $150k per year. The 4% rule says you can expect only $40k income from this nest egg, plus perhaps another $40k or $50k in combined social security income based on your work history. $100K tops
by lakpr
Fri Sep 20, 2019 7:37 pm
Forum: Personal Investments
Topic: cash-out refi, investment interest expense
Replies: 5
Views: 435

Re: cash-out refi, investment interest expense

I will take a shot. You need to be aware that, with the passage of TCJA, the investment interest expense is deductible only if you itemize. Plus, the investment expenses must be offset by that part of the investment income first which is taxed at ordinary income rates. Compare your net investment in...
by lakpr
Fri Sep 20, 2019 7:05 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth vs. Taxable - Guideline?
Replies: 21
Views: 962

Re: Mega Backdoor Roth vs. Taxable - Guideline?

Ok, I think the answer is that you can exceed the $19K cap with an after-tax 401(k)? I guess if you're self-employed it doesn't matter, since you can just do the full $56K in a solo roth 401(k) and not have to deal with an "after-tax 401(k)" or conversions in the first place. Right? You can only co...
by lakpr
Fri Sep 20, 2019 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Withdrawals
Replies: 3
Views: 436

Re: Roth IRA Withdrawals

I mentioned this in two other threads today already; but keep in mind the state tax consequences also. In New Jersey, where I live, any withdrawals from Roth IRAs prior to age 59.5 are treated similar to non-deductible IRAs: in other words, the withdrawal amount is a proportional share of your contr...
by lakpr
Fri Sep 20, 2019 1:32 pm
Forum: Personal Investments
Topic: Roth IRA - Contributing too much too soon? (21 y/o)
Replies: 25
Views: 1949

Re: Roth IRA - Contributing too much too soon? (21 y/o)

The gotcha with using Roth IRA as emergency fund is that you may get snagged with tax complications for state taxes. New Jersey treats withdrawals from Roth IRAs prior to age 59.5 as equivalent to non-deductible IRAs; that is, as a proportional withdrawal of your contributions and earnings. So while...
by lakpr
Fri Sep 20, 2019 1:28 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth vs. Taxable - Guideline?
Replies: 21
Views: 962

Re: Mega Backdoor Roth vs. Taxable - Guideline?

You cannot withdraw from the Roth 401k while you are employed at that particular employer. Very similar to the traditional 401k rules. While IRS regulations prohibit the in-service withdrawal/rollover of employee elective contributions in a designated Roth 401k account prior to age 59 1/2. The IRS ...
by lakpr
Fri Sep 20, 2019 1:16 pm
Forum: Personal Investments
Topic: Get Rid of FA. Create Single Fund Retirement Portfolio
Replies: 11
Views: 1532

Re: Get Rid of FA. Create Single Fund Retirement Portfolio

elainet7 wrote:
Fri Sep 20, 2019 12:22 pm
Vanguard Star Fund-fund of funds, diversified, worth a look
Personally not a fan. Higher expense, actively managed, past track record not any impressive. Either the two W-funds, or LifeStrategy, or Target Date funds are better.
by lakpr
Fri Sep 20, 2019 1:12 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth vs. Taxable - Guideline?
Replies: 21
Views: 962

Re: Mega Backdoor Roth vs. Taxable - Guideline?

I thought you can withdraw the Roth IRA contribution itself penalty free at any time. It's only the growth/earning that you must be 59 1/2 AND it has to have been in there for 5yrs to avoid penalty. Therefore if you roll from your Roth 401k subaccount into an external Roth IRA, you can withdraw tho...
by lakpr
Fri Sep 20, 2019 12:07 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth vs. Taxable - Guideline?
Replies: 21
Views: 962

Re: Mega Backdoor Roth vs. Taxable - Guideline?

Have a beefier Emergency Fund (increase from 3 months to 1 year), then drop everything else into the MBR.
by lakpr
Fri Sep 20, 2019 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Who is responsible for taking RMDs after death of IRA owner?
Replies: 20
Views: 1262

Re: Who is responsible for taking RMDs after death of IRA owner?

I think that's the issue, the executor ignoring the RMD remaining for the year. When the estate tax returns are filed, the IRS is sure to catch the missing RMD and send a notice to the executor. He/She might be held responsible for the penalties and taxes. An executor should have known this upfront ...
by lakpr
Fri Sep 20, 2019 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Who is responsible for taking RMDs after death of IRA owner?
Replies: 20
Views: 1262

Re: Who is responsible for taking RMDs after death of IRA owner?

I am not a lawyer nor have any personal experience with this situation, but my understanding is that any remaining RMD for the year must be satisfied by the estate first, and only then the remaining amount should be distributed to the inheritors under Inherited IRA. So the question of asking the inh...
by lakpr
Fri Sep 20, 2019 11:24 am
Forum: Personal Investments
Topic: New 401k Provider
Replies: 3
Views: 284

Re: New 401k Provider

For a 63 year old, I suggest 50% be in bonds (I use the thumb rule Age-15 allocation to bonds, rounded to nearest 5%). Your total assets ================= $868k in current 401k + $287k in Inherited 401k + $487k in Traditional IRA = $1.64 million in tax deferred $62k in Roth $45 in taxable Total = $1...
by lakpr
Fri Sep 20, 2019 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Should I contribute to an IRA?
Replies: 15
Views: 1232

Re: Should I contribute to an IRA?

But the OP's question is asking why that is the case...why does the law allow him to do a Roth by this convoluted process, but not let him simply contribute directly to the Roth? The answer is that it is, or at least originally was, an unintended loophole. I believe that the loophole was created wh...
by lakpr
Fri Sep 20, 2019 8:37 am
Forum: Personal Investments
Topic: bonds question
Replies: 4
Views: 492

Re: bonds question

Hi, I am in my early 40s and started off with the three fund lazy portfolio with Vanguard. I however recently moved to CA and wanted to see if I can diversify my bonds in my taxable accounts - need advice on whether to use vanguard municipal or CA bond funds (intermediate or long-term) or some comb...
by lakpr
Fri Sep 20, 2019 8:30 am
Forum: Personal Investments
Topic: Is this a good portfolio mix for a retiree?
Replies: 11
Views: 1150

Re: Is this a good portfolio mix for a retiree?

Perhaps that portfolio could be a bit more optimized? The Dividend stocks are already within the S&P500 index, so you are essentially over-weighting them. I would reduce it to the simpler 3-fund portfolio, with 50:50 ratio, and 20% of the stock allocation to international. VTI - 40%. - US TOTAL MARK...
by lakpr
Thu Sep 19, 2019 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: 2 weeks notice or No Notice ? save 3.5K or Reputation ?
Replies: 98
Views: 6894

Re: 2 weeks notice or No Notice ? save 3.5K or Reputation ?

As a business owner, give us the courtesy of a 2 week notice. And to respond to one comment, we dont fire without prior notices of poor performance, so that's a mute point. At my MegaCorp, 18 people were let go yesterday. Zero notice. They were called into a large conf room. Then the head honcho sa...
by lakpr
Thu Sep 19, 2019 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: 2 weeks notice or No Notice ? save 3.5K or Reputation ?
Replies: 98
Views: 6894

Re: 2 weeks notice or No Notice ? save 3.5K or Reputation ?

I would not hesitate to give just one day notice. Look, your job already has been outsourced. Proof that the old company you worked for 8 years did not see enough value in your contributions to retain you. You barely even started with the new company, you dont owe them anything. If anything, you wil...
by lakpr
Thu Sep 19, 2019 4:10 pm
Forum: Personal Investments
Topic: Is it unwise for me to do backdoor Roth (high tax bracket and advancing age)?
Replies: 5
Views: 515

Re: Is it unwise for me to do backdoor Roth (high tax bracket and advancing age)?

+1 to HomeStretch Assuming you will not touch the funds in this backdoor Roth IRA for at least 10 years (use your tax deferred balances for expenses in the meantime) there is value in making the non-deductible contributions to a traditional IRA, but not converting, until the existing traditional IRA...
by lakpr
Thu Sep 19, 2019 12:43 pm
Forum: Personal Investments
Topic: Newly widowed need investment advice
Replies: 35
Views: 1996

Re: Newly widowed need investment advice

I will echo @nixforme’s suggestion. Anywhere between 40% to 60% of your portfolio into FZROX fund (completely equities). Depends on how aggressive you want to be with the stock market participation. Rest in the FXNAX bond fund. Rebalance roughly once an year. May be on your birthday. Or may be on yo...
by lakpr
Thu Sep 19, 2019 5:09 am
Forum: Personal Investments
Topic: Traditional 401K, Roth 401K, or Both
Replies: 17
Views: 955

Re: Traditional 401K, Roth 401K, or Both

With a 70k salary, and assuming you are single, you are in the 22% tax bracket. It also happens to be the very top of the income that would let you drop into the 12% tax bracket if you would defer the max $19k to Traditional 401k ($70k - $19k deferral to 401k - $12,200 standard deduction = $38,800 t...
by lakpr
Wed Sep 18, 2019 6:34 pm
Forum: Personal Investments
Topic: New 401k and Old 401k advice (portfolio too)
Replies: 5
Views: 256

Re: New 401k and Old 401k advice (portfolio too)

If you have more than $5k in the old 401k, it is an IRS rule that neither the ex-employer nor the plan administrator can force you out of the plan. They may not like it, but tough cookies. The worst they can do is to make you pick up the employer cost of record keeping, but otherwise, if you roll th...
by lakpr
Wed Sep 18, 2019 9:25 am
Forum: Personal Investments
Topic: 1Mil$ Dollar-Cost Averaging is a strategy
Replies: 48
Views: 2625

Re: 1Mil$ Dollar-Cost Averaging is a strategy

Jack FFR1846 wrote:
Wed Sep 18, 2019 9:22 am
I would DCA the entire amount in the span of one day.
😂 :sharebeer:
by lakpr
Wed Sep 18, 2019 9:24 am
Forum: Personal Investments
Topic: 1Mil$ Dollar-Cost Averaging is a strategy
Replies: 48
Views: 2625

Re: 1Mil$ Dollar-Cost Averaging is a strategy

I would put 50:50 into FZROX and FXNAX (Fidelity Totsl US Bond index fund). Drawing the RMD solely from the bond portion of the portfolio looks great. The stock portion can be left untouched and be your (4 children's) inheritance, assuming you are ok with the possibility that when you inherit the IR...
by lakpr
Tue Sep 17, 2019 8:33 pm
Forum: Personal Investments
Topic: Help selecting 403b funds
Replies: 5
Views: 284

Re: Help selecting 403b funds

The first two funds you listed in your post: QCBMRX and QCEQRX are enough for your 403b account. You can ignore the rest of the options, except, see below. I heard good things about TIAA traditional, you could perhaps use them. Find out what they are yielding right now. If it is anywhere in the vici...
by lakpr
Tue Sep 17, 2019 5:54 pm
Forum: Personal Investments
Topic: Investing in Retirement
Replies: 11
Views: 1755

Re: Investing in Retirement

@ruralavalon’s portfolio within the traditional IRA is very close to the composition of Vanguard LifeStrategy Conservative Growth fund (only minor differences). So IMO, the “lazy” portfolio can be further simplified to holding just that LS fund in traditional IRA, and have the total stock and total ...
by lakpr
Mon Sep 16, 2019 9:08 am
Forum: Personal Investments
Topic: Can I PRE-tire yet?
Replies: 10
Views: 2144

Re: Can I PRE-tire yet?

As long as you promise to yourself that you won’t touch a penny of this $1million nest egg, and assuming a modest 4% real rate of return (above inflation) over the next 18 years, your nest egg would grow to $2 million by the time you reach age 53. (Rule of 72) 4% of $2 million is $80k, so it appears...
by lakpr
Mon Sep 16, 2019 8:48 am
Forum: Personal Investments
Topic: Now what?
Replies: 15
Views: 1497

Re: Now what?

Tell them life insurance is the price you pay to prove you love someone. Then tell them you are a life insurance salesman and quickly ask them whom they love? They will instantly leave you alone - forever. This also works great on talkative seat mates when you travel on an airplane. 😂 I might steal...
by lakpr
Mon Sep 16, 2019 8:37 am
Forum: Personal Investments
Topic: 401K-What funds should I pick
Replies: 21
Views: 1302

Re: 401K-What funds should I pick

I'm still not sure what to do with my personal Roth right now it 50% Wellington and 50 % Wellesley. I'm thinking it sure be 50% VTSAX and 50% VBTLX. Will do more research before changing anything. Respectfully, either of these combinations you presented above is a 50:50 ratio stocks to bonds. But y...
by lakpr
Mon Sep 16, 2019 4:47 am
Forum: Personal Investments
Topic: 403b: worth it or not?
Replies: 18
Views: 1827

Re: 403b: worth it or not?

You do not have separate traditional 403b and a separate Roth 403b with individual $19k limits. The $19k limit is the sum of what you can contribute to traditional 403b AND Roth 403b. Whether you make that $19k in traditional, or $19k in Roth, or $10k traditional + $9k Roth, or $7k traditional + $12...
by lakpr
Sun Sep 15, 2019 8:00 pm
Forum: Personal Investments
Topic: Are my 403 and 457 worth the fees?
Replies: 28
Views: 1203

Re: Are my 403 and 457 worth the fees?

If you use a traditional account, this doesn't make much difference, because you pay the tax later rather than now. You could invest $760 in a Roth 403(b) if one is offered, or $1000 in a traditional 403(b). But if you are still in a 24% bracket when you withdraw the money, you will get the same re...
by lakpr
Sun Sep 15, 2019 1:21 pm
Forum: Personal Investments
Topic: 401k over contribution
Replies: 2
Views: 207

Re: 401k over contribution

Always better to seek refund from the after tax portion. After tax contributions are subject to ACP testing, regardless of Safe Harbor Plans, so you might want to reduce that portion to be on the safe side. If the plan ACP testing fails you might be looking at refund of the pre tax portion also next...
by lakpr
Sun Sep 15, 2019 2:03 am
Forum: Personal Investments
Topic: Need help with 401K rollover company selection
Replies: 9
Views: 594

Re: Need help with 401K rollover company selection

You do not need any professional advice; I suggest you roll the two 401k funds into a single IRA fund at Vanguard itself. Pick an allocation ratio you are comfortable with, or if you are not sure about it, go with the Vanguard Target Retirement 2025 fund (or perhaps 2020 fund even). It grows gradual...
by lakpr
Sun Sep 15, 2019 1:48 am
Forum: Personal Investments
Topic: Are my 403 and 457 worth the fees?
Replies: 28
Views: 1203

Re: Are my 403 and 457 worth the fees?

I had replied to another poster very recently, about whether it is worth it to contribute to a 457 plan with Nationwide with identical 1.2% fees as your plan: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=290332&p=4746226#p4746029 According to my Math, assuming you would invest the after-tax ...
by lakpr
Sat Sep 14, 2019 9:03 am
Forum: Personal Investments
Topic: Should I buy stocks in Roth IRA or Rollover IRA?
Replies: 6
Views: 326

Re: Should I buy stocks in Roth IRA or Rollover IRA?

Thanks for the feedback but all my money is locked up in Roth and IRA so not much left to open a separate taxable account outside of my retirement accounts. As I mentioned most is in index funds but would like some exposure to a handful of stocks that I know very well. IMO, this is an argument for ...
by lakpr
Sat Sep 14, 2019 8:58 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 5
Views: 607

Re: Portfolio review

Random thoughts based on your post: 1. You are contributing only $10k to 401k, why? Can you not max out that tax deferral, if you are in 22% tax bracket, and especially since you are filing Married Filing Separate? [ Since you said your wife is hoping for PSLF, I am inferring that you are filing MFS...
by lakpr
Sat Sep 14, 2019 8:44 am
Forum: Personal Investments
Topic: Should I buy stocks in Roth IRA or Rollover IRA?
Replies: 6
Views: 326

Re: Should I buy stocks in Roth IRA or Rollover IRA?

+1 to @ivk5

I would suggest any stock trading to be done in a taxable account, so you get to claim losses as offset against ordinary income and other capital gains. I'd stick to mutual funds or ETFs within the Rollover and Roth IRAs.
by lakpr
Fri Sep 13, 2019 4:32 pm
Forum: Personal Investments
Topic: Targeted 401k funds vs custom 3 fund portfolio
Replies: 3
Views: 438

Re: Targeted 401k funds vs custom 3 fund portfolio

Random thoughts based on your post: 1. With a 50k salary, you are in the 12% bracket now. Plus you are expecting a big raise in the future, which will definitely push you into 22% tax bracket. This is a classic case for contributing to a Roth 401k instead of a traditional 401k. Basically saying that...