Search found 499 matches

by Pennstateclj1
Wed Oct 24, 2018 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1484

Re: Tax planning- Pensions, delaying SS, converting?

Euclidian wrote: Wed Oct 24, 2018 1:02 pm Up to $15,000 per year per recipient does not reduce the lifetime exemption.

Any amount over $15,000 reduces the lifetime exemption and requires filing form 709 with your tax return. However, there is no tax due until one exceeds the lifetime exemption.
Ah I understand now. So gifting exemption doesnt trigger reporting and does not count towards lifetime exemption. If exceeding the exemption it prompts reporting and deducting from the lifetime exemption.
by Pennstateclj1
Wed Oct 24, 2018 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1484

Re: Tax planning- Pensions, delaying SS, converting?

Since the 24% tax bracket goes to $315,000, I thought about converting Trad to Roth up to the top of that bracket each year for the next 5 years so that they also avoid RMD's and have no pre-tax assets when SS kicks in. This isn't what you asked, but ... Since they are age 65, are they on Medicare or will they be on Medicare after retirement? (I'm ignorant about whether the military and/or state government employment might give them options other than Medicare for retiree health insurance.) If so, are you familiar with the Income Related Monthly Adjustment Amount (IRMAA) for Medicare Part B (doctor visits, outpatient, labs) and Part D (prescriptions)? Item #1 to watch out for: IRMAA surcharges. Basically, premiums for Part B and D are dete...
by Pennstateclj1
Wed Oct 24, 2018 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1484

Re: Tax planning- Pensions, delaying SS, converting?

SQRT wrote: Wed Oct 24, 2018 10:40 am
Cody wrote: Wed Oct 24, 2018 7:20 am They should keep under the gifting "limits" which I believe are less than $15,000 per person (so I believe that should gift slightly less that $60,000). Doulbe check that.
Cody
Why? They will not be subject to estate taxes given the size of their portfolio.
Maybe I misunderstood the gift tax. So are you saying as long as they don't exceed the 11.2 million, someone could gift 10 million at once to one person and it would just reduce the lifetime exemption?
by Pennstateclj1
Wed Oct 24, 2018 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1484

Re: Tax planning- Pensions, delaying SS, converting?

NavyIC3 wrote: Wed Oct 24, 2018 10:28 am NYS pensions and military pensions as well as social security benefits are not taxed by NYS.
Also the first $20,000 distributed from each spouse's IRA is not taxed by NYS.
Ahhh, ok, so really that 6% isn't coming into play for most of it next year when they are both on pension incomes. This year they both earned in NYS so it was all taxable earned income.
by Pennstateclj1
Wed Oct 24, 2018 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1484

Re: Tax planning- Pensions, delaying SS, converting?

Cody wrote: Wed Oct 24, 2018 7:20 am They should keep under the gifting "limits" which I believe are less than $15,000 per person (so I believe that should gift slightly less that $60,000). Doulbe check that.
Cody
Gifting exemption amount for 2018 is $15k. I looked it up.
by Pennstateclj1
Wed Oct 24, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1484

Re: Tax planning- Pensions, delaying SS, converting?

Carl53 wrote: Wed Oct 24, 2018 4:45 am It does appear that 85% of their SS will be taxed regardless of its size at their marginal bracket.

Consider whether their pensions will continue for a surviving spouse before giving away too much of their assets. On the downside, a surviving spouse also is kicked into a higher tax bracket.

Not having lived in either NY or PA but from what I have read on this forum, they might want to establish residence in PA in a year prior to doing any conversions so as to avoid NY from claiming a chunk.
That's helpful Carl thank you. I'm fairly certain he elected higher spousal benefit. Will double check. And thanks for the residency consideration!
by Pennstateclj1
Wed Oct 24, 2018 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1484

Re: Tax planning- Pensions, delaying SS, converting?

If I understand the numbers you presented correctly, this is their situation relative to Roth conversions. 2018 Adjusted gross income is 45K + 50K + dividends. (This may not be true if they worked this year. The 24% tax rate implied they did.) If they did not and if both are age 65, standard deduction is $24,000 + 1,300 + 1,300 = $26,600. Taxable income is $68,400. They could convert $9,000 to a Roth and remain in the 12% tax bracket in 2018. 2019 Adjusted gross income in 45K + 50K + 20K + dividends, or about $115,000. Taxable income is about $89,000, about 12k into the 22% bracket. Their pre tax saving are about $840,000. Their RMD's will be in the neighborhood of $30,000 to $40,000 per year the first few years (depending on how those ass...
by Pennstateclj1
Tue Oct 23, 2018 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1484

Tax planning- Pensions, delaying SS, converting?

Hello, I am trying to assist a relative with some tax strategies. They've done a great job accumulating, however they have pensions which fill up their tax buckets. They are trying to minimize income taxes and gift the money in case they have a long term care triggering event or something of that sort. They would rather their relatives get the money then an institution. Their goal: Give a living inheritance to be able to watch loved ones enjoy the money. Rough numbers Emergency funds: Six months of expenses easily accessible Debt: Mortgage on retirement house ($300,000) to be paid off after selling primary residence in NY Tax Filing Status: MFJ Tax Rate: 24% Federal, 6.65% NY State, (will retire in PA next year where tax rate is 3.07%) Stat...
by Pennstateclj1
Fri Jul 20, 2018 6:34 am
Forum: Investing - Theory, News & General
Topic: Strategies for maximizing PA state retirement system options
Replies: 0
Views: 427

Strategies for maximizing PA state retirement system options

Hello, I know there are some social security gurus on the boards, so I am wondering if there are any PA state retirement gurus on the board that can help me understand the options available and how best to maximize them? I have a high earner friend that may be able to maximize the 403b and 457b, and I also had questions if they are able to contribute after-tax (not Roth) dollars above the normal contributions limits to start the "mega-backdoor Roth bucket." And if they use both of these can they also contribute to the defined benefit plan? Anyone know of such a person on the boards or can steer me to a resource if you've come across one in your internet travels outlining this topic and best ways to maximize all tax-advantaged spac...
by Pennstateclj1
Sat May 12, 2018 8:08 am
Forum: Personal Investments
Topic: Vanguard says I have Available Funds immediately after transferring?
Replies: 5
Views: 3324

Re: Vanguard says I have Available Funds immediately after transferring?

Anyone know what happens if the funds do not arrive in time? Assume no margin account. The transfer occurs via ACH (Automated Clearing House) which can take 1-3 days to actually arrive. In this instance the money, the transfer is done via a "pull" from the institution instead of a "push" like if you wired it from your bank to your brokerage. As you've identified, the brokerage firm gives you credit to trade even though they do not know if the money is good yet. If you buy something, and then it turns out you did not have the money to cover the trade, then they will charge you a NSF (Non-Sufficient Funds) fee (which varies by firm), bust the trades, will likely restrict or flag your account, and could terminate their rel...
by Pennstateclj1
Wed May 09, 2018 5:31 am
Forum: Personal Investments
Topic: Transferring in kind from Fidelity/Schwab to Vanguard
Replies: 3
Views: 1235

Re: Transferring in kind from Fidelity/Schwab to Vanguard

I have employer ESPP stock in Fidelity and Schwab. I'd like to consolidate these into Vanguard to simplify and later sell at my convenience. Anyone know if "metadata" like grant date, FMV at purchase, qualified status etc. will also transfer? For Schwab- check this out- https://www.schwab.com/public/file/P-5799523/Cost_Basis_Fact_Sheet_2017.pdf I would imagine it is similar for Fidelity. Assuming none of the shares are restricted...The best way to find out is: If they have not moved these ESPP shares into a brokerage account in your name, the logistics of doing this consolidation would be to contact each firm at the customer service phone number listed on the statement you receive for your ESPP shares. Most of the time, these tra...
by Pennstateclj1
Tue May 08, 2018 3:38 pm
Forum: Investing - Theory, News & General
Topic: Is it possible to split a lot into two?
Replies: 13
Views: 1200

Re: Is it possible to split a lot into two?

You cannot split a lot of the same security in the same account- there can be only one entry for the security in the account. The only way to accomplish this would be to open a separate account at the same BRK firm and journal the partial shares over (which is not a transfer in the ACATS system but an internal movement) so that you had 1 share in one account and .5 shares in the other. Admittedly, I have no idea why one would do this short of executing estate requirements.
by Pennstateclj1
Tue May 08, 2018 3:34 pm
Forum: Personal Investments
Topic: Transferring fractional ETF cost basis question
Replies: 22
Views: 2090

Re: Transferring fractional ETF cost basis question

JustinR wrote: Tue May 08, 2018 12:13 pm
I want to do a partial transfer.

I think I have a solution to not sell the fractional. What if, in my example, I only transferred 6 out of 7.5 shares?

The remaining 1.5 shares would remain intact without being liquidated correct?

And the one lot would be split up so half of it transferred out while the other half stayed?
If you do a partial transfer, the 1.5 shares will remain intact.

The lot that remains behind depends on your BRK account tax lot relief method.

Assuming you are FIFO, First-in First- out, the 1.5 shares that remain behind will be the "newest" shares.
by Pennstateclj1
Tue May 08, 2018 3:29 pm
Forum: Personal Investments
Topic: Mail Check or Wire Funds from Vanguard IRA fund to Bank IRA CD??
Replies: 14
Views: 2671

Re: Mail Check or Wire Funds from Vanguard IRA fund to Bank IRA CD??

Not ideal, but have to play by their rules if you're doing a custodian to custodian transfer.
by Pennstateclj1
Tue May 08, 2018 7:28 am
Forum: Personal Investments
Topic: Choosing an Optional Retirement Plan 403b
Replies: 8
Views: 1298

Re: Choosing an Optional Retirement Plan 403b

It seems that most ppl prefer TIAA because of the lower fees but I was worried about their 10 year payout. Does anyone have any input on this? I have also attached the links to the info I could find on the funds they offer. TIAA: https://www.tiaa.org/public/tcm/msorp/view-all-investments?planId=151605 VOYA: https://msorp.beready2retire.com/investments/investment-options/666314 VALIC: https://my.valic.com/funds/FundPerformance/Index.aspx 2) When I do decide to invest, which ones should I invest in for someone who is 25 yrs old with no prior investment. Thank you Hello, The TIAA 10 year payout usually only applies to money you add to their "guaranteed" fund (I think they used to call it TIAA traditional) where you can only take 10%...
by Pennstateclj1
Tue May 08, 2018 7:17 am
Forum: Personal Investments
Topic: Looking for an individual 401k that will accept qualified plan rollovers
Replies: 9
Views: 667

Re: Looking for an individual 401k that will accept qualified plan rollovers

I am considering a career change, and an considering what to do with my retirement savings. I plan to open up an individual 401K to handle retirement contributions from consulting income. I would like to be able to roll over my retirement savings from my current company's 401k to the individual 401K to take advantage of ERISA protections. From scouring the internet, it looks as if Fidelity, Schwab, and E-Trade allow for Ira rollovers. Do they allow for qualified plan rollovers? Is there a difference? Anybody have any experience with this issue? As Livesoft mentioned, this is a permissible rollover because the IRS portability chart says so- https://www.irs.gov/pub/irs-tege/rollover_chart.pdf Solo K's are not common, so (speaking from experi...
by Pennstateclj1
Tue May 08, 2018 5:40 am
Forum: Investing - Theory, News & General
Topic: Is it possible to split a lot into two?
Replies: 13
Views: 1200

Re: Is it possible to split a lot into two?

An alternative might be to buy a fraction of a share to create a whole share, not sure if you can do that. Interestingly enough, I have one equity that has fractional shares and I can't even place an order to sell them online, I either have to choose "sell all" or call. I had to call to find that out. You can purchase fractional shares of open end mutual funds. For stocks, you can purchase fractional shares through a transfer agent (Computershare, American Stock Transfer, etc) but the fractional shares still cannot transfer out from the transfer agent to a broker. But this isn't the case for ETFs, no transfer agents for ETFs so no partial share purchase available. As you mentioned/experienced, you cannot sell fractional shares ei...
by Pennstateclj1
Tue May 08, 2018 5:36 am
Forum: Investing - Theory, News & General
Topic: Is it possible to split a lot into two?
Replies: 13
Views: 1200

Re: Is it possible to split a lot into two?

AlohaJoe wrote: Mon May 07, 2018 10:10 pm
Yes, when you do an ACATS transfer you can specify how many shares to transfer. I've never seen an ACATS transfer fancy enough to specify lots (i.e. I want to transfer 10 shares from the December lot and 25 shares from the January lot.) But maybe they exist.
The only way to kinda do what you're mentioning is to change the overall account disposal method prior to transfer. So you could indicate highest cost shares out first, or lowest cost shares out first, and then the shares that would leave on a partial ACATS would be those because of the overall preference on the account. But no, on a partial ACATS you CANNOT indicate specific lots by dates.
by Pennstateclj1
Tue May 08, 2018 5:33 am
Forum: Personal Investments
Topic: Transferring fractional ETF cost basis question
Replies: 22
Views: 2090

Re: Transferring fractional ETF cost basis question

No I didn’t work for either of them, but I frequently received calls from them and made calls out to them- and it’s ALL in who you get on the phone whether you get good info or not. Sad right? Check out this thread- https://www.bogleheads.org/forum/viewtopic.php?t=113387 Thanks. I called TDA again and this time the person told me that I can't transfer fractional shares. I'll call Vanguard tomorrow to see how they handle the liquidation. Hopefully someone there knows what they're talking about. Ugh. So just to confirm: you can transfer fractional lots that add up to a whole number though right? That's what the TDA guy said would work. I wonder...is it possible to manually have Vanguard split a lot for me into two lots? I could do that befor...
by Pennstateclj1
Mon May 07, 2018 9:11 pm
Forum: Personal Investments
Topic: Transferring fractional ETF cost basis question
Replies: 22
Views: 2090

Re: Transferring fractional ETF cost basis question

No I didn’t work for either of them, but I frequently received calls from them and made calls out to them- and it’s ALL in who you get on the phone whether you get good info or not. Sad right?

Check out this thread- viewtopic.php?t=113387
by Pennstateclj1
Mon May 07, 2018 8:50 pm
Forum: Personal Investments
Topic: Transferring fractional ETF cost basis question
Replies: 22
Views: 2090

Re: Transferring fractional ETF cost basis question

Fractional shares transfer for open-end mutual funds but not for stocks or ETFs. I would imagine you did not to speak to someone that specifically handles transfers and got bad info.

Did you speak to someone in the transfer department of either of those firms or just general customer service? Because that was a big problem of bad info at my last firm. All I helped people with was transfers and rollovers the last 4 years of my life 🤷🏻‍♂️
by Pennstateclj1
Mon May 07, 2018 4:33 pm
Forum: Personal Investments
Topic: Moving my Simple IRA from Ameriprise
Replies: 9
Views: 1262

Re: Moving my Simple IRA from Ameriprise

Roxen72 wrote: Mon May 07, 2018 3:49 pm
I know about the 75$ a year to have the account, I was just wondering if that's the only expense of their brokerage account as my advisor told me. Other that that, is it really like holding the plan at Vanguard or Schwab?
Depends what you're buying. You mentioned mutual funds, are you buying loaded funds? How is your Ameriprise advisor making their money if you're not in a managed account anymore?

If you buy stocks or ETFs those are subject to commission. Sometimes buying Vanguard, Fidelity or Schwab funds outside of their firm will incur fees by a brokerage firm. What funds are you looking at buying?
by Pennstateclj1
Mon May 07, 2018 4:29 pm
Forum: Personal Investments
Topic: Transferring fractional ETF cost basis question
Replies: 22
Views: 2090

Re: Transferring fractional ETF cost basis question

I see. If the ACATS system doesn't recognize individual lots, do the lots carry over to the new brokerage though? I would imagine your account holdings after transfer will show 7 shares. When you click on the lot details it will still give you the breakdown of the lots. When Vanguard sends the cost basis info for the covered securities (might be electronically if both broker/dealers participate, or will be via mail otherwise), TD Ameritrade will add it for the covered securities. The non-covered will probably show something like "UNK" for unknown. If you have the basis for the non-covered, there will probably be a way to add it on their website or sending it to them, but that would just be for your edification. Cost bases for non...
by Pennstateclj1
Mon May 07, 2018 3:42 pm
Forum: Personal Investments
Topic: Transferring fractional ETF cost basis question
Replies: 22
Views: 2090

Re: Transferring fractional ETF cost basis question

Whoa... That sucks. So if I have 16 lots with fractional shares, I have 16 taxable events on my hands? Ugghh. Maybe I confused you a little. Eventually yes you'll have to report each lots cost basis for the non-covered shares. The covered shares will automatically report basis to the IRS and will show up on your tax form. Usually if you use tax prep software it will import these docs so you don't have to manually enter everything. Right now at Vanguard I would imagine it just shows you have 7.5 shares, and when you go to the lot detail it gives you the lot breakdown. "Example: CODE: SELECT ALL Shares Basis 1.25 $59.40 2.50 $30.33 3.75 $42.97" If so, the only sale that will happen on the transfer is the .5 share because the ACATS ...
by Pennstateclj1
Mon May 07, 2018 3:17 pm
Forum: Personal Investments
Topic: Moving my Simple IRA from Ameriprise
Replies: 9
Views: 1262

Re: Moving my Simple IRA from Ameriprise

Is it really possible that keeping the Simple IRA in a brokerage account at Ameriprise would be equivalent to rolling it over at Vanguard, Fidelity or Schwab in terms of fees and expenses? She insisted that there would be non other charges than the annual account fee. I'm not really convinced about that . I know that Vanguard is the first choice here, and I do have a borkerage account with them, so, can you point at some advantages of having my Simple IRA rolled over to Vanguard instead of Scwab, considering the reasons why I would go with the latter? Thanks in advance, Rossella Hi Rossella, Just to clarify on the terms- if you move a Simple IRA to another Simple IRA, that is a transfer, not a rollover. The difference is a transfer is not ...
by Pennstateclj1
Mon May 07, 2018 2:42 pm
Forum: Personal Investments
Topic: Transferring fractional ETF cost basis question
Replies: 22
Views: 2090

Re: Transferring fractional ETF cost basis question

Are they covered securities- meaning did you purchase them prior to 2012 or after 2012? https://investor.vanguard.com/taxes/cost-basis/covered-noncovered If so, the cost basis will transfer to the new custodian. If it was prior to 2011 you will need to keep the records for when you eventually sell the shares. And you're correct, fractional shares of stocks and ETFs do not transfer so they will liquidate the fractional shares and cash will transfer over if its a full ACATS transfer, if it's a partial ACATS transfer the cash will remain at Vanguard. Half are covered, and half noncovered. What happens? What do you mean the cost basis transfers, do all the lots stay fractional? The fractional shares are going to sell for all of the lots. For t...
by Pennstateclj1
Mon May 07, 2018 7:56 am
Forum: Personal Investments
Topic: edited [was: In-Service Rollover of Traditional Roth 401k --> Roth IRA]
Replies: 10
Views: 1335

Re: In-Service Rollover of Roth 401k --> Roth IRA

I believe they are differentiating between your contributions and earnings. The return of roth contributions and then the money you earned in the market on those contributions is what they are labeling as "taxable" if you were to take them out of the Roth prior to the 5-year Roth 401k rule which still applies to money rolled over or converted.
by Pennstateclj1
Mon May 07, 2018 7:54 am
Forum: Personal Investments
Topic: edited [was: In-Service Rollover of Traditional Roth 401k --> Roth IRA]
Replies: 10
Views: 1335

Re: In-Service Rollover of Roth 401k --> Roth IRA

@Spirit Rider I assisted with transfer and rollovers at my previous firm in an inbound call center environment for about 5 years. During that time, I probably called out to 5,000 different employer plans to help people with rollovers. While not common- some plans allow in-service rollovers and it is not against IRS rules. Where did you hear differently?
by Pennstateclj1
Mon May 07, 2018 7:49 am
Forum: Personal Investments
Topic: Transferring fractional ETF cost basis question
Replies: 22
Views: 2090

Re: Transferring fractional ETF cost basis question

Are they covered securities- meaning did you purchase them prior to 2012 or after 2012? https://investor.vanguard.com/taxes/cos ... noncovered

If so, the cost basis will transfer to the new custodian. If it was prior to 2011 you will need to keep the records for when you eventually sell the shares.

And you're correct, fractional shares of stocks and ETFs do not transfer so they will liquidate the fractional shares and cash will transfer over if its a full ACATS transfer, if it's a partial ACATS transfer the cash will remain at Vanguard.
by Pennstateclj1
Fri May 04, 2018 8:20 am
Forum: Personal Investments
Topic: Mail Check or Wire Funds from Vanguard IRA fund to Bank IRA CD??
Replies: 14
Views: 2671

Re: Mail Check or Wire Funds from Vanguard IRA fund to Bank IRA CD??

This type of transfer cannot be done via ACATS. ACATS transfers are only from one brokerage account to another brokerage account of matching registration.

The receiving firm ALLY will send the signed and dated transfer form to Vanguard along with the ALLY delivery instructions. Typically, checks are the cheaper option. That said, I do not believe Vanguard charges an outgoing wire fee (they're one of the few that do not) but MOST firms charge outgoing fees or account closure fees. I think Vanguard is in the minority in this practice of not charging account closeout or transfer fees.

https://investor.vanguard.com/mutual-funds/fees
by Pennstateclj1
Wed Apr 17, 2013 3:49 pm
Forum: Personal Investments
Topic: New 401k funds ! Which ones do I invest in ?
Replies: 13
Views: 2709

Re: New 401k funds ! Which ones do I invest in ?

I would also look into the following insurances if you don't have them-
Umbrella liability
Long term disability
by Pennstateclj1
Wed Apr 17, 2013 3:33 pm
Forum: Personal Investments
Topic: New 401k funds ! Which ones do I invest in ?
Replies: 13
Views: 2709

Re: New 401k funds ! Which ones do I invest in ?

I'd keep it simple and go 50/50 stocks bonds, you could leave it that way for a few years, that's more conservative than either of those target retirement funds. Remember defense is more important the older you get, you have less time to ride the ups and more importantly the downs-

With your 35k- (assuming you have emergency savings somewhere...)
$10,000 in I bonds from Treasury Direct
$25,000 Vanguard Intermediate Tax Exempt VWITX

Traditional 401k- existing money and new contributions $23k/year
50% Total bond
25%- institutional
10%- extended
15% international

Roth IRA- open new if under $112k income, $6500/year
Vanguard domestic or international REIT or combination of the two

Thoughts?
by Pennstateclj1
Fri Apr 12, 2013 8:21 pm
Forum: Personal Investments
Topic: New 401k funds ! Which ones do I invest in ?
Replies: 13
Views: 2709

Re: New 401k funds ! Which ones do I invest in ?

So you can max out your 401k pre-tax to reduce your tax bill. It should be $23,000 you can contribute this year.

If that puts you under $112,000 for MAGI you can also contribute $6,500 to a Roth IRA.

As far as a taxable account, you are in a high bracket so a tax-exempt bond fund would be appropriate. Or you could go with stocks, Total Stock Market Index or Total International Index and take advantage of some tax loss harvesting/foreign tax credit. You need to decide on an Asset Allocation first, and then go from there.
by Pennstateclj1
Fri Apr 12, 2013 6:38 pm
Forum: Personal Investments
Topic: Portfolio/Investing help AD Military
Replies: 5
Views: 1663

Re: Portfolio/Investing help AD Military

Welcome to the forum and thanks for serving, Question 1- Steer clear of Dave Ramsey's investing advice as you noted. I started investing with American Funds when I was 18, and what a scam that was. Front load of 5.75%, you don't need the ELP advisor, RUN away from that guy. Go with Vanguard. Question 2- Make sure your retirement and financial independence are on track before worrying about kid's college. Kid 1 might get a scholarship, kid 2 might become an entrepreneur and you might only need to help out kid 3. I would hate to have money locked in in their names for something that might no come to fruition for whatever reason. What if brick and mortar colleges become less attractive and online schooling is the new norm? What if they join th...
by Pennstateclj1
Fri Apr 12, 2013 6:24 pm
Forum: Personal Investments
Topic: New 401k funds ! Which ones do I invest in ?
Replies: 13
Views: 2709

Re: New 401k funds ! Which ones do I invest in ?

Welcome to the forum! Without listing your Expense Ratios for each account, it's hard to tell, but I'll go out on a limb and say the Vanguard funds would be the cheapest. What's your Asset Allocation or stock/bond ratio? Without your desired asset allocation we can't give percentage advice. Are you a conservative or risky investor? How do you feel about international stock? Can you stay the course through all market conditions at a given asset allocation? TRP 2020 is only 30% bonds, which I feel is not enough for a 50 year old. Defense (bonds) are important. I'd go with these- Vanguard Total Bond Market Index Vanguard Institutional Index Vanguard Extended Market Index Vanguard Total Intl Stk Covers the entire US Stock market, and Internatio...
by Pennstateclj1
Wed Jan 16, 2013 7:33 pm
Forum: Personal Investments
Topic: Why max Roth IRA first and then 401(k)?
Replies: 61
Views: 16829

Re: Why max Roth IRA first and then 401(k)?

chemeng wrote:Fortunately, my company offers a good amount of options for 401k
Lots of options doesn't necessarily mean low cost. We prefer index funds or low cost active funds, something in the .2% expense ratio range or preferably lower.
by Pennstateclj1
Wed Jan 16, 2013 7:19 pm
Forum: Personal Investments
Topic: Why max Roth IRA first and then 401(k)?
Replies: 61
Views: 16829

Re: Why max Roth IRA first and then 401(k)?

An important item you left out is marginal tax brackets for fed/state, that's another important factor.
by Pennstateclj1
Wed Jan 16, 2013 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage with PenFed HEL and cash
Replies: 6
Views: 1052

Re: Paying off mortgage with PenFed HEL and cash

Welcome to the forum, Owed: $120,426 Appraised value in March 2012: $126,000 You might have a problem here, because of the lack of equity, you'll most likely have to use some of that cash. Have you considered just paying it off completely with the inheritance money so you have no mortgage? You're probably not getting any benefit over the standard MFJ deduction from the mortgage interest at that loan amount and rate. Then you could max your 401k and IRA, and her stuff too? I am 47 and married. I max out a Roth IRA every year and put 15K into a 401K. I will receive a CALPERS pension and have 20 years into the system so far. It's my understanding that the CALPERS pensions is highly sought after, so if you're saving a lot in addition to that ku...
by Pennstateclj1
Wed Jan 16, 2013 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: refinance or pay off mortgage?
Replies: 9
Views: 1327

Re: refinance or pay off mortgage?

Watty wrote:They also have a five year home equity loan at 1.99% that should have low or no closing costs.https://www.penfed.org/home-equity-loan/
This. No closing costs as long as you don't pay it off in 2 years or something, it's in the fine print at the bottom. Then max all retirement accounts and taxable with leftover.
by Pennstateclj1
Tue Jan 15, 2013 6:56 am
Forum: Personal Investments
Topic: Emergency Savings in Bond Fund
Replies: 19
Views: 2871

Re: Emergency Savings in Bond Fund

FB01 wrote:Pennstateclj1,

Do you reinvest the dividend in VWITX which you have for emergency ?
Yes
by Pennstateclj1
Mon Jan 14, 2013 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Helaine Olen: Pound Foolish
Replies: 73
Views: 17853

Re: Helaine Olen: Pound Foolish

lmpmd wrote:She pushes index funds here. That seems wise:
http://finance.yahoo.com/blogs/daily-ti ... 54956.html
I was waiting for her to plug Bogleheads the whole time, sadly it never happened.
by Pennstateclj1
Mon Jan 14, 2013 1:59 pm
Forum: Personal Investments
Topic: Emergency Savings in Bond Fund
Replies: 19
Views: 2871

Re: Emergency Savings in Bond Fund

Maybe statewide there is, but it doesn't mean each municipality that the bond was issued to got their act together. CA inter term tax-exempt has 1008 bonds, all concentrated in CA, 20% of the bonds can be AMT bonds. https://personal.vanguard.com/us/funds/snapshot?FundId=0100&FundIntExt=INT#tab=2 If you look at some of the bonds recently issued under portfolio holdings, they look like bailout bonds to me. "California Economic Recovery Bonds GO 5.250% " Vanguard inter term tax-exempt has 3974 bonds, spread out throughout the entire US, no AMT bonds. https://personal.vanguard.com/us/funds/snapshot?FundId=0042&FundIntExt=INT#tab=2 I chose VWITX because I wanted to spread my risk. Just because the governor claims there is a sur...
by Pennstateclj1
Mon Jan 14, 2013 11:02 am
Forum: Personal Investments
Topic: Emergency Savings in Bond Fund
Replies: 19
Views: 2871

Re: Emergency Savings in Bond Fund

The general, VWiTX. I don't want to concentrate my risk to CA especially given current budget shortfalls and such.
by Pennstateclj1
Mon Jan 14, 2013 8:29 am
Forum: Personal Investments
Topic: Emergency Savings in Bond Fund
Replies: 19
Views: 2871

Re: Emergency Savings in Bond Fund

For one tier of our emergency fund, we use Vanguard Intermediate tax-exempt bonds. Hold more in the fund if you're worried about -10% fluctuations. $25,000 emergency fund with 10% cushion = $27,500.
by Pennstateclj1
Sun Jan 13, 2013 8:13 am
Forum: Personal Finance (Not Investing)
Topic: Compare your stuff with 60,000 others
Replies: 4
Views: 1707

Re: Compare your stuff with 60,000 others

I enjoyed it too, I'm finally above average at something. :beer
by Pennstateclj1
Sat Jan 12, 2013 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: First Car Purchase...$7K-$9K
Replies: 45
Views: 4748

Re: First Car Purchase...$7K-$9K

If you use their car buying service, you can get their low rates. This is in addition to any dealer incentives. If you go the other way through the dealer, you might only get to take $1000 cash back, but get a higher interest rate. Or $0 cash back, and a 0% rate but pay a higher up front price for the car. You could find the vehicle you want through one of the car buying services and see if they'll beat the price. They all (USAA, Penfed, etc) seem to use the truecar pricing system so the only thing that seems to vary is the APR they charge to finance it. I like this more because I dislike negotiations at the dealer, I'd rather get a price I'm comfortable with and just go pick up the car. Take a look for yourself- https://www.penfed.org/penf...
by Pennstateclj1
Sat Jan 12, 2013 11:42 am
Forum: Personal Finance (Not Investing)
Topic: First Car Purchase...$7K-$9K
Replies: 45
Views: 4748

Re: First Car Purchase...$7K-$9K

The base Kia Forte through the Penfed auto buying service is $15,516 for the 4 dr automatic.

The base Corolla 4 dr automatic is $16,200 through the same service.

.49% financing for 48 months.
by Pennstateclj1
Sat Jan 12, 2013 9:38 am
Forum: Personal Investments
Topic: Fund HSA or pay off CCs?
Replies: 13
Views: 2125

Re: Fund HSA or pay off CCs?

We have a sufficient emergency fund if you consider our savings account balances and what we've contributed to our Roths. I might just hold onto $1k in savings, plus what's in the Roths as backup and put the rest of the cash towards the CC's. You'll never win paying interest. Yes, we are contributing to a 401k (beyond what is needed to secure the match). We also contribute to a 403b where we are not yet eligible to receive a match (waiting period of 1 year). We contribute to Roth IRAs (contribute 2400/year total) and have one Traditional IRA and not contributing anything to it (we started it to rollover some 401k funds out of an employer plan While I applaud you knowing you need to save, first things first. Only contribute the match for no...
by Pennstateclj1
Sat Jan 12, 2013 9:03 am
Forum: Personal Investments
Topic: Please Comment My Situation. Thanks
Replies: 54
Views: 6651

Re: Please Comment My Situation. Thanks

Loan initiated in May 2006 Current principal: $116k @5.375% Monthly payment breakdown P&I: 743.73, Tax: 57.74, Insurance: 98.40, PMI/MIP :49.88 My questions are: 1) If we were to refi the loan at a lower rate, would that negate our FHA program loan agreement? (not sure of terminology) Chances are if you refinanced now, you could do a conventional loan. Do you have any cash to bring to the table for the refinance? Could you do a 15 year conventional loan, rates are around 2.5% right now. If you are at 20% equity in the home, then you can do a conventional without bringing cash to closing. You would have to have an appraisal through the new lender to verify this. At any rate, even if you did a FHA streamline refinance, you could probably...