Search found 228 matches

by Xanadu
Mon Nov 19, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: Shorting the U.S. stock market
Replies: 12
Views: 1122

Re: Shorting the U.S. stock market

Here’s a fun planet money podcast where they short the us stock market.

https://www.npr.org/sections/money/2015 ... rt-america
by Xanadu
Mon Nov 19, 2018 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Help me be confident with Roth IRA and post Tax 401k details.
Replies: 13
Views: 653

Re: Help me be confident with Roth IRA and post Tax 401k details.

Check her 401k summary plan description (SPD). It should tell you what she can and can’t do under her plan.
by Xanadu
Mon Nov 19, 2018 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Help me be confident with Roth IRA and post Tax 401k details.
Replies: 13
Views: 653

Re: Help me be confident with Roth IRA and post Tax 401k details.

Point 3 - not necessarily. All Roth 401ks are post-tax, but not all post tax 401ks are Roth 401ks. It depends what your plan says. For me, I don’t have Roth 401k option but I do have after-tax option with ability to do in service rollovers once every six months. So I will contribute max to pre-tax 4...
by Xanadu
Mon Nov 12, 2018 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: 401k rollover to Roth IRA - timing & taxes
Replies: 8
Views: 424

Re: 401k rollover to Roth IRA - timing & taxes

^ yes, you are right. I can roll over the company match portion. Not my contribution portion.
by Xanadu
Mon Nov 12, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: 401k rollover to Roth IRA - timing & taxes
Replies: 8
Views: 424

Re: 401k rollover to Roth IRA - timing & taxes

Just to clarify, are you age 59-1/2? That's the only way that you can do in-service rollovers of your pretax contributions, although company contributions would be eligible at any time. I doubt that the plan restricts you to rolling into a TIRA, although they might for electronic transfers. You cou...
by Xanadu
Mon Nov 12, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: 401k rollover to Roth IRA - timing & taxes
Replies: 8
Views: 424

Re: 401k rollover to Roth IRA - timing & taxes

It looks like I can make the request online. My IRA is at Vanguard, which is listed among the options of rollover companies. However, it looks like it will only let me roll it directly into a Traditional IRA. This means I will need to then convert it to a Roth IRA after I get it to Vanguard. Could t...
by Xanadu
Mon Nov 12, 2018 10:42 am
Forum: Investing - Help with Personal Investments
Topic: 401k rollover to Roth IRA - timing & taxes
Replies: 8
Views: 424

401k rollover to Roth IRA - timing & taxes

My 401k plan allows for In Service Rollovers. I'm projecting that we will be in the 24% tax bracket this year. I believe that our tax rate in retirement will be greater than 24%. I want to rollover a small portion of my before-tax 401k into my Roth IRA up to the point that we near the 32% tax bracke...
by Xanadu
Sat Nov 10, 2018 7:06 am
Forum: Investing - Help with Personal Investments
Topic: Selling I Bonds/Buying New I Bonds?
Replies: 9
Views: 1258

Re: Selling I Bonds/Buying New I Bonds?

If your old ibonds are not older than 5 years, then you will lose 3 months of the interest.

You are also limited to $10,000 per person per year, in case you were planning to invest new monies too.
by Xanadu
Fri Nov 09, 2018 8:03 pm
Forum: Investing - Theory, News & General
Topic: P/E Ratios - US vs International
Replies: 19
Views: 1461

Re: P/E Ratios - US vs International

What would be the purpose of such analysis? Would you attempt to determine how much to weight the two in an asset allocation? The 'problem' with using P/E ratios for this purpose, especially valuation metrics like CAPE, is that they are not reliably mean reverting. This is true of both individual s...
by Xanadu
Fri Nov 09, 2018 7:49 pm
Forum: Investing - Theory, News & General
Topic: P/E Ratios - US vs International
Replies: 19
Views: 1461

Re: P/E Ratios - US vs International

What would be the purpose of such analysis? Would you attempt to determine how much to weight the two in an asset allocation? The 'problem' with using P/E ratios for this purpose, especially valuation metrics like CAPE, is that they are not reliably mean reverting. This is true of both individual s...
by Xanadu
Thu Nov 08, 2018 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 43
Views: 4491

Re: Mega Backdoor Roth Mechanics

No dice on the additional 3% match. Rats!
by Xanadu
Sun Nov 04, 2018 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Program?
Replies: 18
Views: 1282

Re: Deferred Compensation Program?

Thanks for all the advice and great information. This has been very helpful! As far as more details on distribution options, the plan doesn't restrict the payout timing to retirement age, but rather the date which was specified on the election form (unless earlier than separation from service). Afte...
by Xanadu
Sat Nov 03, 2018 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Program?
Replies: 18
Views: 1282

Re: Deferred Compensation Program?

I have been participating in a NQDC plan for the last 17 years and it has really helped me manage my tax situation. Currently I am 47 and plan retire in a few years. The attraction for me was being able to defer amounts much larger than the annual limits in 401(k)s and being able to get the money b...
by Xanadu
Sat Nov 03, 2018 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Program?
Replies: 18
Views: 1282

Re: Deferred Compensation Program?

There is no 25% tax bracket. How do you expect to be there when retired? Oh I was going off of 2017 tax rates. I thought that after the TCJA tax rates expire, they would go back to what they were, no? Maybe. Sometimes these things get an extension or are made permanent. Nobody knows if that will ha...
by Xanadu
Sat Nov 03, 2018 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Program?
Replies: 18
Views: 1282

Re: Deferred Compensation Program?

I think you are already deferring enough if you are each deferring $18.5k a year. This sounds like a non-governmental 457 except I've never heard of one where you don't have a choice about what to invest in. Maybe more information would be helpful. I don't think its a 457. Regarding the investment ...
by Xanadu
Sat Nov 03, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Program?
Replies: 18
Views: 1282

Re: Deferred Compensation Program?

Bacchus01 wrote:
Sat Nov 03, 2018 5:25 pm
There is no 25% tax bracket. How do you expect to be there when retired?
Oh I was going off of 2017 tax rates. I thought that after the TCJA tax rates expire, they would go back to what they were, no?
by Xanadu
Sat Nov 03, 2018 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Program?
Replies: 18
Views: 1282

Re: Deferred Compensation Program?

What do the plan documents say if she leaves prior to reaching retirement age? Some plans pay it out in a single lump sum, which defeats the purpose of deferring payouts until retirement when you would pay less tax on the amount. Also, what do you expect your marginal tax rate to be in retirement? ...
by Xanadu
Sat Nov 03, 2018 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Program?
Replies: 18
Views: 1282

Deferred Compensation Program?

Just found out today that my wife has the option to contribute to a Deferred Compensation Program through her employer. This is the first I've ever heard of such a thing. I'm trying to decide if it's worth signing up for it. Anyone else have experience with this? Here is some basic info: We are curr...
by Xanadu
Fri Nov 02, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Mega ROTH conversion
Replies: 19
Views: 1289

Re: Backdoor Mega ROTH conversion

If you have to wait 6 months to contribute, why couldn't you just save and load up on contributions for the 6 months afterwards? Exactly. I only make after-tax contributions after I fill up my pretax limit. Essentially, it's 5.5 months of pretax and then 5.5 months of after-tax and then conversion....
by Xanadu
Fri Nov 02, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Mega ROTH conversion
Replies: 19
Views: 1289

Re: Backdoor Mega ROTH conversion

I’m inclined to believe that as long as your tIRA balance as of Jan 1st is zero, then you won’t owe any taxes on any Roth conversions during the year. So timing becomes an important factor. Somebody can correct me if I’m mistaken.
by Xanadu
Fri Nov 02, 2018 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Mega ROTH conversion
Replies: 19
Views: 1289

Re: Backdoor Mega ROTH conversion

So, if I heard you correct, I roll earnings portion to tIRA, transfer it back into my 401k and let it grow in 401k. But when I withdraw from 401k, wouldn't i pay taxes on these earnings? Yes, but if you think you will be in a lower tax bracket in retirement, then it might be worth it. I’m gearing u...
by Xanadu
Thu Nov 01, 2018 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Mega ROTH conversion
Replies: 19
Views: 1289

Re: Backdoor Mega ROTH conversion

My understanding is, alternatively, you could roll the contribution portion into Roth IRA and earnings portion into tIRA. Then transfer the tIRA back into 401k. Then no taxes are owed. Rinse and repeat.
by Xanadu
Wed Oct 31, 2018 8:15 pm
Forum: Investing - Theory, News & General
Topic: 2018 BOGLEHEAD CONTEST LEADERS
Replies: 2
Views: 623

Re: 2018 BOGLEHEAD CONTEST LEADERS

Hi Taylor. I believe that link is to the 2017 contest.
by Xanadu
Tue Oct 30, 2018 1:39 pm
Forum: Personal Consumer Issues
Topic: Apple Mac Mini/Pro Updates? Don't Want iMac
Replies: 22
Views: 2509

Re: Apple Mac Mini/Pro Updates? Don't Want iMac

Looks like new Mac mini’s are finally coming out next week. I’ve been holding out as long as possible making due with my 2009 iMac, so I’m pretty excited that the new mini is finally coming. Seems like it would be the most cost effective for someone like me that wants to stay in the apple ecosystem ...
by Xanadu
Thu Oct 25, 2018 8:25 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 43
Views: 4491

Re: Mega Backdoor Roth Mechanics

^
Guess I will need to wait another 2 weeks to find out. Looks like the updates I just made to my aftertax contribution hasn’t been applied to payroll yet.
by Xanadu
Tue Oct 23, 2018 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 43
Views: 4491

Re: Mega Backdoor Roth Mechanics

Hmm. The first part does sound exactly like what you said. But the last paragraph is concerning. I'm not sure what it means. It almost sounds like they are using the term after-tax to mean Roth. I agree it is a bit confusing how they word it. But the only options in the plan are pre-tax contributio...
by Xanadu
Tue Oct 23, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 43
Views: 4491

Re: Mega Backdoor Roth Mechanics

So are the earnings on after tax contributions taxable while they are still within the 401k account? Or does the tax get triggered only when I make the conversion to my Roth IRA?
by Xanadu
Tue Oct 23, 2018 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 43
Views: 4491

Re: Mega Backdoor Roth Mechanics

Hmm. The first part does sound exactly like what you said. But the last paragraph is concerning. I'm not sure what it means. It almost sounds like they are using the term after-tax to mean Roth. I agree it is a bit confusing how they word it. But the only options in the plan are pre-tax contributio...
by Xanadu
Tue Oct 23, 2018 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 43
Views: 4491

Re: Mega Backdoor Roth Mechanics

...but my employer will match me dollar for dollar on the fist 3% of my after tax contribution. That is in addition to the 4% match on my pre-tax contribution! That sounds pretty unusual. Are you sure there is not a limit on this? I would have thought if you are getting a full 4% match on your elec...
by Xanadu
Tue Oct 23, 2018 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 43
Views: 4491

Re: Mega Backdoor Roth Mechanics

I’m totally kicking myself for not looking into the Mega Backdoor Roth earlier. I remember a couple years ago I tried asking my HR department, but they told me I couldn’t do after tax contributions (wrong!). Well, now that I’m looking into the fine print of our 401k plan, not only does it offer afte...
by Xanadu
Mon Oct 22, 2018 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 43
Views: 4491

Re: Mega Backdoor Roth Mechanics

If your after tax 401k contribution loses money prior to rolling into Roth IRA, can you take a deduction on your fed income tax for the loss amount? Like a tax loss harvest kinda thing?
by Xanadu
Thu Oct 18, 2018 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: PPO vs HDHP + HSA
Replies: 25
Views: 1594

Re: PPO vs HDHP + HSA

I often see people trying to decide between HDHP+HSA and a traditional plan, and they are almost always comparing theoretical costs for the next YEAR....I think this is a bit short-sighted. The bigger question to me is, if you go with the traditional health insurance, will it still be earning and c...
by Xanadu
Thu Oct 18, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: PPO vs HDHP + HSA
Replies: 25
Views: 1594

Re: PPO vs HDHP + HSA

If I contribute $7,000 to the HSA, I figure I would be saving $2,642 in taxes plus the $1,400 company match, which would be an additional $4,042 in my pocket if I go with the HDHP. Worst case scenario, if I spend the max of $7,000 out of pocket in network, that's $4000 more than I would have spent ...
by Xanadu
Tue Oct 16, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: PPO vs HDHP + HSA
Replies: 25
Views: 1594

Re: PPO vs HDHP + HSA

Thank you all for the input. I plan to go with the HDHP/HSA option.
by Xanadu
Mon Oct 15, 2018 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: PPO vs HDHP + HSA
Replies: 25
Views: 1594

Re: PPO vs HDHP + HSA

My plans have individual and family deductibles. Are the ones you like per individual on the plan or per family? (E.g. if per individual; a $3000 deductible could have you paying as much as $3K*4=$12K per year; there might be a per-plan deductible that limits this down further). They are per family
by Xanadu
Mon Oct 15, 2018 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: PPO vs HDHP + HSA
Replies: 25
Views: 1594

Re: PPO vs HDHP + HSA

Also, family is healthy overall
by Xanadu
Mon Oct 15, 2018 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: PPO vs HDHP + HSA
Replies: 25
Views: 1594

Re: PPO vs HDHP + HSA

Do they have the same networks and same coverage? Same network (CareFirst). Coverages are mostly the same with some slight differences: Emergency room - HDHP is 80% after deductible; PPO is $50 then 80% after deductible Office visits (non-preventative care?) - HDHP is 80% after deductible; PPO is $...
by Xanadu
Mon Oct 15, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: PPO vs HDHP + HSA
Replies: 25
Views: 1594

PPO vs HDHP + HSA

Good afternoon friends, My employer just started offering a High Deductible Health Plan last year, with the option to open an HSA. I believe I would be better off doing the HDHP+HSA, but want to make sure I'm not missing anything. I have 1 spouse and 2 kids (ages 6 & 1) Employer will match $1,400 to...
by Xanadu
Thu Feb 08, 2018 11:14 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7947
Views: 1618494

Re: U.S. stocks in freefall

aqan wrote:
Thu Feb 08, 2018 10:46 pm
Xanadu wrote:
Thu Feb 08, 2018 10:32 pm
Cool I’m in the top 5 in the the 2018 Bogleheads contest now :D
the what?
https://www.lostoak.com/ls/diehards/contest/
by Xanadu
Thu Feb 08, 2018 10:32 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7947
Views: 1618494

Re: U.S. stocks in freefall

Cool I’m in the top 5 in the the 2018 Bogleheads contest now :D
by Xanadu
Sat Sep 16, 2017 11:04 am
Forum: Investing - Theory, News & General
Topic: Shiller PE over 30
Replies: 17
Views: 1917

Shiller PE over 30

Shiller PE is over 30 now. Does it even matter? If so, what action should be taken if any? Or just sit back, watch, and stay the course?
by Xanadu
Mon Feb 13, 2017 8:22 pm
Forum: Local Chapters and Bogleheads Community
Topic: Your USER NAME...what does it mean?
Replies: 444
Views: 50775

Re: Your USER NAME...what does it mean?

When I started my first job, there was an employee that worked for the same corporation with the same first and last name as me and the same middle initial. So when my email was assigned to me, my middle initial was replaced with an "X". Co-workers joked that it stood for Xanadu, and the nickname st...
by Xanadu
Tue Apr 26, 2016 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: I-bonds versus mortgage.
Replies: 11
Views: 2021

Re: I-bonds versus mortgage.

If your I bond contributions are counted toward your overall AA, the correct comparison would be the expected rate of return of your portfolio vs your mortgage interest rate. Although the the mortgage rate is guaranteed while the portfolio return is not. Personally, I contribute 10k per year to ibon...
by Xanadu
Sat Mar 05, 2016 10:14 am
Forum: Personal Finance (Not Investing)
Topic: How much fed tax do you withhold?
Replies: 22
Views: 2633

Re: How much fed tax do you withhold?

I'm surprised to see so many that try to not owe anything at the end of the year. I would not expect so many Bogleheads to turn down an interest-free loan!
by Xanadu
Fri Mar 04, 2016 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: How much fed tax do you withhold?
Replies: 22
Views: 2633

Re: How much fed tax do you withhold?

I'm thinking 95% is a good target. That way you don't run the risk of owing penalties and you still get a free loan from the government.
by Xanadu
Fri Mar 04, 2016 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: How much fed tax do you withhold?
Replies: 22
Views: 2633

How much fed tax do you withhold?

How much fed tax do you target to withhold from your salary in a given year, as a percentage of Total fed tax due that year?
by Xanadu
Wed Mar 02, 2016 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Home Equity
Replies: 23
Views: 2298

Re: Calculating Home Equity

I look up the market price from Zillow.com and then subtract my principal mortgage amount.

You could also use the tax assessment value to use as the price and subtract the principal from that.
by Xanadu
Mon Feb 15, 2016 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: SS and Medicare taxes owed
Replies: 16
Views: 1894

Re: SS and Medicare taxes owed

Ok thanks, now that makes sense. So then if SS and Medicare tax is tied only to my wages, then does that mean that I will no longer have to pay once I retire? Not necessarily. If you end up with stock options or other deferred income you will pay those taxes when you realize the income, even if you...
by Xanadu
Fri Feb 12, 2016 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: SS and Medicare taxes owed
Replies: 16
Views: 1894

Re: SS and Medicare taxes owed

Ok thanks, now that makes sense.

So then if SS and Medicare tax is tied only to my wages, then does that mean that I will no longer have to pay once I retire?
by Xanadu
Fri Feb 12, 2016 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: SS and Medicare taxes owed
Replies: 16
Views: 1894

Re: SS and Medicare taxes owed

Yea you're right, I meant boxes 4 and 6.

No I don't think I overpaid, I'd just like to know to get a better understanding of where all my money goes (i.e. How much to savings, how much to the government, etc.)

Thanks!