Search found 7991 matches

by lakpr
Mon Aug 02, 2021 6:58 pm
Forum: Personal Investments
Topic: Saving for 2022 Roth IRA lump sum contribution vs. DCA into taxable account now
Replies: 15
Views: 1310

Re: Saving for 2022 Roth IRA lump sum contribution vs. DCA into taxable account now

Is it a good idea to withdraw from taxable brokerage account to fully fund Roth IRA at lumpsum? If you do not have other funds that aren't invested yet, I don't see why not? What do you mean other funds? I only use FZROX for Roth IRA and my taxable is just VTSAX. This will also generate a tax event...
by lakpr
Mon Aug 02, 2021 5:21 pm
Forum: Personal Investments
Topic: How do you figure whether you have 25x, 30x expenses ?
Replies: 19
Views: 2385

Re: How do you figure whether you have 25x, 30x expenses ?

"Since SS has COLA, it is a straight multiplication of 8 years times $50k = $400k at age 70. Assuming inflation is 2%, $400k at age 70 is equivalent to $322k in today's money." SS has a COLA. The COLA should match inflation. So why are you reducing the $400k for inflation that is offset b...
by lakpr
Mon Aug 02, 2021 5:02 pm
Forum: Personal Investments
Topic: How do you figure whether you have 25x, 30x expenses ?
Replies: 19
Views: 2385

Re: How do you figure whether you have 25x, 30x expenses ?

This method of valuing the pension seems flawed to me as the alternative would be either buying an annuity or holding a portfolio that could sustain the withdrawals. You can consider future payments and how they might change based on retirement date to consider estimated lifetime benefits, but to t...
by lakpr
Mon Aug 02, 2021 3:31 pm
Forum: Personal Investments
Topic: How do you figure whether you have 25x, 30x expenses ?
Replies: 19
Views: 2385

Re: How do you figure whether you have 25x, 30x expenses ?

Thanks, lakpr, for taking the time to run the numbers. HomerJ's response right below your post suggests I need to get to about $2.4M at age 59 to cover both ages 59-69 before SS and then from ages 70-89. That seems within striking distance as I'm at almost $2.2M now, and still working. If I meet my...
by lakpr
Mon Aug 02, 2021 12:33 pm
Forum: Personal Investments
Topic: Which Vanguard funds to invest $400k in?
Replies: 27
Views: 2346

Re: Which Vanguard funds to invest $400k in?

Thank you so much, this is very helpful! If I am understanding correctly, the rationale for switching the Roth to VTSAX and then moving part of TSP to G is that the Roth will then grow more tax-free, or is there also another reason? I don't think I really want to pay down the mortgage. As you said,...
by lakpr
Mon Aug 02, 2021 8:50 am
Forum: Personal Investments
Topic: What type of account to open for my niece as a gift?
Replies: 8
Views: 534

Re: What type of account to open for my niece as a gift?

+1 to both the above posters. If you gift less than $15k in a given calendar year to someone, anyone, you don't need to report anything to the IRS. If you gift more than $15k in a given calendar year to someone, anyone, you need to file a gift tax return. On the gift tax return, you just need to say...
by lakpr
Mon Aug 02, 2021 8:13 am
Forum: Personal Investments
Topic: What type of account to open for my niece as a gift?
Replies: 8
Views: 534

Re: What type of account to open for my niece as a gift?

I think having an account in your name, and mentally earmarking it as your niece's money is the only plausible solution. Not being a US citizen (yet) means not having an SSN, and therefore cannot open a UTMA / 529-plan type of account with her as the beneficiary any way. [ Or perhaps there may be, i...
by lakpr
Mon Aug 02, 2021 7:59 am
Forum: Personal Investments
Topic: Switching mutual funds in an IRA- dividends question
Replies: 3
Views: 224

Re: Switching mutual funds in an IRA- dividends question

You are not going to lose anything, whether you switch to the 3-fund portfolio now, or if you wait until dividends are declared and paid. Dividends are not magic money that appear out of thin air; when companies declare a dividend, it comes out of the cash pile they have, and everyone knows that the...
by lakpr
Mon Aug 02, 2021 5:49 am
Forum: Personal Finance (Not Investing)
Topic: Father intends to have no will. He will use named beneficiaries on accounts to distribute assets to heirs. Is this wise?
Replies: 98
Views: 7251

Re: Father intends to have no will. He will use named beneficiaries on accounts to distribute assets to heirs. Is this w

Specifically for Fidelity, perhaps, but not all of my other accounts, e.g. Amazon, Microsoft 365, this forum. :P Plus my estate plan includes DPOA so my sister (again also being the executor) would be able to provide that anyway for account information, etc. True, accounts at non financial institut...
by lakpr
Mon Aug 02, 2021 5:38 am
Forum: Personal Finance (Not Investing)
Topic: Father intends to have no will. He will use named beneficiaries on accounts to distribute assets to heirs. Is this wise?
Replies: 98
Views: 7251

Re: Father intends to have no will. He will use named beneficiaries on accounts to distribute assets to heirs. Is this w

What's wrong with that? I'm actually in the process of having a new estate plan drawn up in my current state as opposed to the state where the current plan was drawn up. I'm securely providing my 1Password Emergency Kit to my new estate attorney to give to my sister, who is the executor of my will ...
by lakpr
Mon Aug 02, 2021 5:13 am
Forum: Personal Investments
Topic: Saving for 2022 Roth IRA lump sum contribution vs. DCA into taxable account now
Replies: 15
Views: 1310

Re: Saving for 2022 Roth IRA lump sum contribution vs. DCA into taxable account now

Looking for clarification because I may be in a position to do this for my 2022 Roth IRA contribution. Is the idea that I would start buying VTI (for example) in a taxable account this year, and then right after January 1 of next year, sell the entire VTI position and buy back the VTI inside my Rot...
by lakpr
Mon Aug 02, 2021 5:04 am
Forum: Personal Investments
Topic: Saving for 2022 Roth IRA lump sum contribution vs. DCA into taxable account now
Replies: 15
Views: 1310

Re: Saving for 2022 Roth IRA lump sum contribution vs. DCA into taxable account now

Vanguard User wrote: Sun Aug 01, 2021 8:09 pm Is it a good idea to withdraw from taxable brokerage account to fully fund Roth IRA at lumpsum?
If you do not have other funds that aren't invested yet, I don't see why not?
by lakpr
Mon Aug 02, 2021 4:40 am
Forum: Personal Investments
Topic: 401K Roth or tax deferred? - Advice needed
Replies: 5
Views: 504

Re: 401K Roth or tax deferred? - Advice needed

You are at age 52, and according to the Social Security website, the full retirement age for someone born in 1968 or 1969 is 67 years. Assuming you will wait to claim your SS at least until then, you have a 15 year investment time horizon. Let us assume you will not contribute a single dollar again ...
by lakpr
Mon Aug 02, 2021 4:15 am
Forum: Personal Investments
Topic: Complex analysis- High income.. convert IRA to Roth, or Rollover to Employer 401k?
Replies: 15
Views: 1177

Re: Complex analysis- High income.. convert IRA to Roth, or Rollover to Employer 401k?

In another thread, using some plain vanilla assumptions, I calculated that the opportunity cost of not being able to contribute to Roth IRA (through backdoor) can be taken to be approximately $1000 per year. { look at my calculations as to how I arrived at that opportunity cost, in my previous post ...
by lakpr
Mon Aug 02, 2021 3:51 am
Forum: Personal Investments
Topic: Which Vanguard funds to invest $400k in?
Replies: 27
Views: 2346

Re: Which Vanguard funds to invest $400k in?

- We both have Roth IRAs in Vanguard target retirement 2045 ($124k each), no longer contributing as over the income level You have a quarter of a million dollars in tax-free space available to you at Vanguard? What do you think you should do with that? I would suggest it be 100% in VAIPX. Disagree ...
by lakpr
Mon Aug 02, 2021 2:52 am
Forum: Personal Investments
Topic: How do you figure whether you have 25x, 30x expenses ?
Replies: 19
Views: 2385

Re: How do you figure whether you have 25x, 30x expenses ?

Hi! I'm trying to get a sense of where I stand in terms of how many multiples of my expected retirement expenses in I have saved so far. It seems to get a little complicated when you factor in a non-cola pension and then SS coming in at different times. For example, Age: 59 Expenses: $150k annual e...
by lakpr
Sun Aug 01, 2021 9:48 pm
Forum: Personal Investments
Topic: Using TSP G Fund for short term cash needs ($100K in 2 years)
Replies: 8
Views: 789

Re: Using TSP G Fund for short term cash needs ($100K in 2 years)

Assuming you have not bought them yet, why not I bonds? You can buy $10k per SSN per year. Assuming you are married, - Buy $10k now for each of you = $20k - Buy $10k as early as possibly in January 2022 = $20k - Deliberately over pay your taxes by at least $5k for 2021, and claim the return in the ...
by lakpr
Sun Aug 01, 2021 8:46 pm
Forum: Personal Investments
Topic: Using TSP G Fund for short term cash needs ($100K in 2 years)
Replies: 8
Views: 789

Re: Using TSP G Fund for short term cash needs ($100K in 2 years)

Assuming you have not bought them yet, why not I bonds? You can buy $10k per SSN per year. Assuming you are married, - Buy $10k now for each of you = $20k - Buy $10k as early as possibly in January 2022 = $20k - Deliberately over pay your taxes by at least $5k for 2021, and claim the return in the f...
by lakpr
Sun Aug 01, 2021 9:42 am
Forum: Personal Finance (Not Investing)
Topic: which state to retire
Replies: 201
Views: 19872

Re: which state to retire

2) what are the rules on taxes if I live abroad for more than six months. I have family in Goa, India On this particular point, note that you will be deemed a resident of India for taxation purposes, if you spend more than 120 days (NOT 183 days!) during a fiscal year in India. India's fiscal year ...
by lakpr
Sun Aug 01, 2021 7:10 am
Forum: Personal Investments
Topic: Partial back door Roth
Replies: 4
Views: 418

Re: Partial back door Roth

Made 3000 front door contribution earlier this year. Might be in income limit donut hole. Can I make the other 3000 now as back door? (Would be my first time). What if I later find I over contributed to front door? Do you have any Traditional IRA or SEP IRA or SIMPLE IRA or Rollover IRA at any cust...
by lakpr
Sun Aug 01, 2021 6:59 am
Forum: Personal Investments
Topic: Paying off mortgage on a vacation home
Replies: 7
Views: 1320

Re: Paying off mortgage on a vacation home

If you have bonds in your portfolio that are earning less than 3.3% after tax return, which is almost a certainty in today's low rate environment, it makes sense to sell those bonds and payoff the mortgage. Not sure what mortality has got to do with the mortgage. Until you die you are paying more in...
by lakpr
Sat Jul 31, 2021 7:17 pm
Forum: Personal Investments
Topic: The Best of the Bad Options (Stuck in Voya for 401k)
Replies: 18
Views: 1818

Re: The Best of the Bad Options (Stuck in Voya for 401k)

I missed that (that the ER is 1.21%)! Thanks for pointing that out.

Fully agree, this is just a horrible plan.
by lakpr
Sat Jul 31, 2021 5:42 pm
Forum: Personal Investments
Topic: The Best of the Bad Options (Stuck in Voya for 401k)
Replies: 18
Views: 1818

Re: The Best of the Bad Options (Stuck in Voya for 401k)

I think everyone is overlooking the T Rowe Price Retirement series of funds. The expense ratio on these funds, on the retail side, is ranging between 0.45% for 2010 fund to 0.65% for the 2065 fund. If the expense ratios within the plan are right about the same as in retail, then choosing one of the ...
by lakpr
Sat Jul 31, 2021 3:55 pm
Forum: Personal Investments
Topic: Roth 403b to Roth IRA within same brokerage
Replies: 4
Views: 264

Re: Roth 403b to Roth IRA within same brokerage

Check out the expense ratios of the funds in your Roth 403(b) and compare with the expense ratios of equivalent funds in the Roth IRA. With employer plans, sometimes (often?) you get access to Institutional Funds or Collective Investment Trusts, that carry far lower expense ratios than what you can ...
by lakpr
Sat Jul 31, 2021 10:55 am
Forum: Personal Investments
Topic: Bonds in Portfolio or Pay Down Mortgage
Replies: 19
Views: 2169

Re: Bonds in Portfolio or Pay Down Mortgage

I agree house is not a replacement for Bond. It is just an illiquid asset. When you sell it you will lose 7-8% of its value in commission, Taxes and Fees. This is incurred whether or not you pay the mortgage down, when you sell. It is neither an argument for nor an argument against paying down the ...
by lakpr
Sat Jul 31, 2021 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Key Bank $750 bonus
Replies: 26
Views: 2781

Re: Key Bank $750 bonus

Yeah, forgot to mention that this doesn't have a direct deposit requirement. Such a requirement would be a show-stopper since I am (quite happily) retired...! According to Doctor of Credit, an ACH from Vanguard counts as direct deposit with Key Bank. Even if there were a direct deposit requirement ...
by lakpr
Fri Jul 30, 2021 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Key Bank $750 bonus
Replies: 26
Views: 2781

Re: Key Bank $750 bonus

Yeah, forgot to mention that this doesn't have a direct deposit requirement. Such a requirement would be a show-stopper since I am (quite happily) retired...! According to Doctor of Credit, an ACH from Vanguard counts as direct deposit with Key Bank. Even if there were a direct deposit requirement ...
by lakpr
Fri Jul 30, 2021 9:58 pm
Forum: Personal Investments
Topic: Inherited IRA questions
Replies: 4
Views: 722

Re: Inherited IRA questions

You got it exactly right. You will have thus indirectly moved the Inherited IRA into your own retirement plan(s). Also do not forget to max out your Roth IRA, for a total of $45k per year into tax advantaged accounts. If on the outside chance that Mega Backdoor Roth is offered in your 403b plan, max...
by lakpr
Fri Jul 30, 2021 4:58 pm
Forum: Personal Investments
Topic: When lump sum in hot market think of TLH as a little downside protection?
Replies: 18
Views: 1740

Re: When lump sum in hot market think of TLH as little downside protection?

Opinions very, but I view the wash sales rules to apply only between IRA accounts (either Traditional or Roth), and taxable accounts. I do not view retirement plan accounts within the purview of wash sales rules. But then again, I realize that this is being aggressive tax wise, I could be wrong and ...
by lakpr
Thu Jul 29, 2021 5:32 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 7
Views: 663

Re: Portfolio Review

PRBLX is something my wife wants to invest for moral values like clean energy etc. PRBLX = Parnassus Core Equity Fund (for the benefit of those who are reading this thread later), has a very high expense ratio of 0.84% Vanguard has cheaper ESG ETF, ESGV for an expense ratio of 0.12%. https://invest...
by lakpr
Thu Jul 29, 2021 5:10 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 7
Views: 663

Re: Portfolio Review

One of the main principles of Boglehead philosophy is that you should invest in the market into broad based index funds (which you appear to meet with your selection), but also avoid picking one sector or another as a winner and tilt towards it (which is what I think you are violating). If you are i...
by lakpr
Thu Jul 29, 2021 3:00 pm
Forum: Personal Investments
Topic: How to maximize returns in a short time with low risk
Replies: 33
Views: 2805

Re: How to maximize returns in a short time with low risk

rajeshlh wrote: Thu Jul 29, 2021 2:43 pm How about Vanguard Inflation TIPS etf VIPSX? Appears to have safety with some upside potential.
Negative yields. -1.64% yield as of 7/22/2021

https://investor.vanguard.com/mutual-fu ... view/vaipx
by lakpr
Thu Jul 29, 2021 11:00 am
Forum: Personal Investments
Topic: Question about creating brokerage account through my 401k
Replies: 9
Views: 481

Re: Question about creating brokerage account through my 401k

I've never heard of this, and wonder what the downsides are to a self directed brokerage. Seems like so many more options with the same tax advantage. :confused Your plan has to first offer it. If offered, apart from the fees that are charged for the SDBO, you are correct, same tax advantage. My pl...
by lakpr
Thu Jul 29, 2021 10:32 am
Forum: Personal Investments
Topic: New Member, portfolio review
Replies: 37
Views: 2567

Re: New Member, portfolio review

I'm definitely going to start converting my rollover IRA to my Roth IRA. Everything I keep reading suggests doing it at the end of the year but if I'm keeping up with everything, you see anything wrong with starting to convert now? Just as long as I don't convert too much to put myself in the next ...
by lakpr
Thu Jul 29, 2021 10:25 am
Forum: Personal Investments
Topic: New Member, portfolio review
Replies: 37
Views: 2567

Re: New Member, portfolio review

Excellent points retiredjg ! That's what I was thinking. This is probably the lowest tax rate I will ever have. I don't think I qualify for those tax credits but I will check again. You know of a good source to check on that? Earned income tax credit income limits (this is the AGI, not taxable inco...
by lakpr
Thu Jul 29, 2021 6:16 am
Forum: Personal Finance (Not Investing)
Topic: How to keep pre-marital assets separate, while still contributing?
Replies: 68
Views: 4711

Re: How to keep pre-marital assets separate, while still contributing?

Will your Employer allow a one time in service distribution? You could roll that out to the TIRA and keep it separate that way. ? IRS rules prohibit in service distributions of 401k employee contributions. That is not something left to the discretion of the individual plan. Employer matching contri...
by lakpr
Thu Jul 29, 2021 4:57 am
Forum: Personal Investments
Topic: Portfolio Review / Questions
Replies: 5
Views: 766

Re: Portfolio Review / Questions

Random thoughts as I read your post: 1. With $120k salary, and 8.5% of it mandatory pension contribution, you are contributing $10k every year to pension fund, to what you describe to be a bond heavy allocation. Generally pension funds invest in a 60:40 ratio, or $4k per year of your money is being ...
by lakpr
Wed Jul 28, 2021 12:52 pm
Forum: Personal Investments
Topic: "Recharacterize" 403(b) contribution as 457(b)?
Replies: 15
Views: 657

Re: "Recharacterize" 403(b) contribution as 457(b)?

Why not roll-over the the 403(b) to a roll-over IRA or if your current employer accepts incoming roll-overs, you can transfer the 403(b) account balance to the 401(k)? To me, this is what I would do. I think you misunderstood the question. I do not have the numbers, but the situation is like this: ...
by lakpr
Wed Jul 28, 2021 12:50 pm
Forum: Personal Investments
Topic: "Recharacterize" 403(b) contribution as 457(b)?
Replies: 15
Views: 657

Re: "Recharacterize" 403(b) contribution as 457(b)?

Hi BH! Earlier this year I worked for a large university system. They offered a 403(b) and a 457(b), and I arbitrarily elected to contribute to the former but not the latter. Fast forward three months (but still the same tax year) and I'm now working at a company that only offers a 401(k). Since 40...
by lakpr
Wed Jul 28, 2021 2:43 am
Forum: Personal Investments
Topic: does anyone buy ibonds under kids' names?
Replies: 22
Views: 2653

Re: does anyone buy ibonds under kids' names?

thanks everyone for the insights. Yes the ibonds will be a gift for the kids although I will manage it until they are 18yr. College tuition is exactly what I had in mind. Now from what I read tax is deferred until the ibond is sold. So does this mean to stay under standard deduction (assume kid has...
by lakpr
Tue Jul 27, 2021 1:59 pm
Forum: Personal Investments
Topic: New Member, portfolio review
Replies: 37
Views: 2567

Re: New Member, portfolio review

I made a mistake and said I was in 22% bracket and I'm actually in 12% bracket. Same recommendations here? I snipped most of your post but: - OK, let your son keep making the car loan payment, training wheels for "adulting" :) - In the 12% bracket, actually I would prefer Roth 401k myself...
by lakpr
Tue Jul 27, 2021 11:03 am
Forum: Personal Investments
Topic: Bonds in Portfolio or Pay Down Mortgage
Replies: 19
Views: 2169

Re: Bonds in Portfolio or Pay Down Mortgage

If we pay off the mortgage, that improves cashflow by around $3800/mo but all the models I've worked, even if I put all that money into taxable, it is significantly less 20 years from now v.s. having the amount invested now and paying remaining mortgage off in 20 years. Right, that's why I said I a...
by lakpr
Tue Jul 27, 2021 9:07 am
Forum: Personal Investments
Topic: Best Cash Accounts
Replies: 5
Views: 979

Re: Best Cash Accounts

Would Toyota Income Driver Notes be a candidate for at least part of the money? https://www.bogleheads.org/forum/viewtopic.php?f=1&t=340088 Income Driver Notes are like the I bonds and EE bonds, except that instead of US government as the obligor, Toyota Motor Credit Corporation is your obligor....
by lakpr
Tue Jul 27, 2021 8:51 am
Forum: Personal Investments
Topic: New Member, portfolio review
Replies: 37
Views: 2567

Re: New Member, portfolio review

Nate78, Welcome to the forum. The first thing I would do is knock out the car loan. Car loans and credit card debts are not tax-deductible, so that 2.9% rate you are paying on your car note, is really equivalent to 2.9% / (1 - 22% - 5.75%) = 4%. If a bank were to offer you 4% CD, with the caveat tha...
by lakpr
Tue Jul 27, 2021 8:22 am
Forum: Personal Investments
Topic: Bonds in Portfolio or Pay Down Mortgage
Replies: 19
Views: 2169

Re: Bonds in Portfolio or Pay Down Mortgage

Interest paid on the mortgage principal above $750k is not tax deductible. If you are not hurting for liquidity (and sounds like you are not, with that $840k incoming cash), I would reduce the principal balance at least by $250k, then ask the lender to recast the mortgage. I am in the camp of "...
by lakpr
Mon Jul 26, 2021 12:38 pm
Forum: Personal Investments
Topic: 35% cash, nearly 40
Replies: 19
Views: 2580

Re: 35% cash, nearly 40

(I wish I knew how to insert images here, but alas I don't; I wanted to cut and paste in the chart of results from portfoliovisualizer.) After running your analysis, you can click the "Link" button that appears next to "Portfolio Analysis Results", which would update the URL in ...
by lakpr
Mon Jul 26, 2021 11:00 am
Forum: Personal Investments
Topic: Should I Rebalence
Replies: 8
Views: 925

Re: Should I Rebalence

Your mortgage principal balance of $188k, with a 2.375% interest rate, is essentially $4465 in interest paid per year. Coupled with maximum SALT deduction of $10k, your itemized deductions total only $14,465. Standard deduction is $25,100 -- so you need to contribute to charity more than $10k per y...
by lakpr
Mon Jul 26, 2021 10:55 am
Forum: Personal Investments
Topic: Advice on possible elder abuse?
Replies: 19
Views: 1636

Re: Advice on possible elder abuse?

According to Portfolio Visualizer, $14k left in Target 2020 fund in 2015 would have grown to $22.5k https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2015&firstMonth=1&endYear=2021&lastMonth=12&calendarAligned=true&includeYTD=false&init...
by lakpr
Mon Jul 26, 2021 9:44 am
Forum: Personal Investments
Topic: Should I Rebalence
Replies: 8
Views: 925

Re: Should I Rebalence

Never mind, see below ...
by lakpr
Mon Jul 26, 2021 7:05 am
Forum: Personal Investments
Topic: 35% cash, nearly 40
Replies: 19
Views: 2580

Re: 35% cash, nearly 40

With a fully paid off home, I do think you can go up to 75:25 ratio than 60:40. I am a big believer in Age-20 allocation to bonds, which suggests a 80:20 actually but if you are a bit shy 70:30 or 75:25 would be better.