Search found 299 matches

by ef11
Fri Oct 23, 2020 8:06 am
Forum: Personal Investments
Topic: Financial Planning 23 Y/O
Replies: 21
Views: 1474

Re: Financial Planning 23 Y/O

Congrats on being on this forum at 23, it will make a world of difference for your future. I also started here at 23, this is my first ever post which is very similar to yours. https://www.bogleheads.org/forum/viewtopic.php?t=92480 I would maximize your 401k and Roth for sure. Each year you don't ta...
by ef11
Tue Oct 13, 2020 7:46 am
Forum: Personal Investments
Topic: Is it worth to do SEP IRA or solo 401k if short term?
Replies: 32
Views: 1470

Re: Is it worth to do SEP IRA or solo 401k if short term?

Your situation is not concerning in my opinion. Can't see how a Solo 401k could hurt anything. This is a question that few people seem to think about. Just trying to bring it to people's attention. :happy I agree that not many people think about it. I am 31 and have been maxing out MegaCorp 401k an...
by ef11
Mon Oct 12, 2020 11:46 am
Forum: Personal Investments
Topic: Is it worth to do SEP IRA or solo 401k if short term?
Replies: 32
Views: 1470

Re: Is it worth to do SEP IRA or solo 401k if short term?

If you want to contribute much more to the Solo 401k, using the Mega Backdoor Roth, you will need a custom designed plan that allows for after-tax contributions and in-service withdrawals. I see this hasn't been mentioned yet, but it could be very advantageous to someone in your situation. Do some r...
by ef11
Fri Oct 09, 2020 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Potential Family Land Sale - 120 Acres Austin, TX Area
Replies: 51
Views: 5459

Re: Potential Family Land Sale - 120 Acres Austin, TX Area

Quick update on the offer's we've received all within the past couple of months.

Company 1:
First offer - $1.5 MM
Second offer $2.0 MM

Company 2: Received offer 10/8/20
First offer - $3.15 MM

Company 3:
Working on an offer but have not presented one yet.
by ef11
Mon Oct 05, 2020 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Potential Family Land Sale - 120 Acres Austin, TX Area
Replies: 51
Views: 5459

Re: Potential Family Land Sale - 120 Acres Austin, TX Area

If you don't need the money now and a transaction valued at 10x per just happened in the near vicinity, I'd be holding out. With that said, if your portion of the $2 million is that last straw, that last piece of the the puzzle that would enable you to be financially independent/quit work/change yo...
by ef11
Sat Oct 03, 2020 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Potential Family Land Sale - 120 Acres Austin, TX Area
Replies: 51
Views: 5459

Re: Potential Family Land Sale - 120 Acres Austin, TX Area

There are several aspects to this, but I think you have a reasonable handle on it. I’d perhaps approach a bit differently though. I would start with a decision on whether this is a good time to “break up the llc”. I’m assuming the 3 partners inherited somehow equal shares of this 1 tract? Otherwise...
by ef11
Fri Oct 02, 2020 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Potential Family Land Sale - 120 Acres Austin, TX Area
Replies: 51
Views: 5459

Re: Potential Family Land Sale - 120 Acres Austin, TX

Have a situation I would like some peer opinions on to ensure we are not missing anything in our analysis. ..... Appraised value is over $2 MM and any gains would be long-term. ..... Our extended family owns many different tracts of land in this area.... It sounds like diversification would be a fa...
by ef11
Fri Oct 02, 2020 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Potential Family Land Sale - 120 Acres Austin, TX Area
Replies: 51
Views: 5459

Re: Potential Family Land Sale - 120 Acres Austin, TX

Can you enter an agreement with developers that does not involve sale for all of the land, by keeping rights over major corners and/or other parts that would be ideal for commercial? You could then keep commercial and work with a developer for NNN-type revenue. Might be able to use the sale of part...
by ef11
Fri Oct 02, 2020 6:29 am
Forum: Personal Finance (Not Investing)
Topic: Potential Family Land Sale - 120 Acres Austin, TX Area
Replies: 51
Views: 5459

Potential Family Land Sale - 120 Acres Austin, TX Area

Hello Fellow Bogleheads, Have a situation I would like some peer opinions on to ensure we are not missing anything in our analysis. My family has had a tract of land in our family for over 100 years, just outside of Austin, TX. It is ~120 acres, Ag-exempt, we have a small company that pays us to far...
by ef11
Wed Sep 23, 2020 8:05 am
Forum: Personal Investments
Topic: Hiring my first employee, so will have to lose my Solo 401(k). What to do now?
Replies: 17
Views: 2065

Re: Hiring my first employee, so will have to lose my Solo 401(k). What to do now?

Great to hear. You may be able to reduce the employee's salary some as well saying that you are going to contribute a large chunk to their retirement...depends on the employee though and their willingness to accept that. The IRS and especially the Department of Labor (DOL*) take a dim view of such ...
by ef11
Tue Sep 22, 2020 7:59 pm
Forum: Personal Investments
Topic: Hiring my first employee, so will have to lose my Solo 401(k). What to do now?
Replies: 17
Views: 2065

Re: Hiring my first employee, so will have to lose my Solo 401(k). What to do now?

Thanks, all! This is a great discussion. It looks like I will be looking into a 401k plan that has profit sharing via either new comparability or pro-rata contributions. Still ironing out the details, and it looks like I will be required to contribute a nice chunk of change for the employee, but th...
by ef11
Tue Sep 22, 2020 7:39 pm
Forum: Personal Investments
Topic: VXUS - Why? [Vanguard Total International Stock ETF]
Replies: 109
Views: 6828

Re: VXUS - Why? [Vanguard Total International Stock ETF]

From age 23 to 31 I've had my allocation to international at 25% of total portfolio... I struggle because we are supposed to buy under performing classes and sell over performing (rebalance). But, I've decided to adjust it down to 15-20% of my AA instead of 25%. Wish I would have made this decision ...
by ef11
Wed Sep 16, 2020 12:34 pm
Forum: Personal Investments
Topic: Purchasing home with less than 20% downpayment experiences?
Replies: 59
Views: 4914

Re: Purchasing home with less than 20% downpayment experiences?

I did 5% down on a $304,000 purchase that appraised at $316,000 (new build). Lower % down did not increase my rate at all (3.25%) but cost about $60/mo in PMI. I was able to keep an extra $45,000 to invest and calculated if I just made 1.6% on that money (to cover the PMI expense) I would come out a...
by ef11
Wed Sep 16, 2020 8:29 am
Forum: Personal Investments
Topic: Hiring my first employee, so will have to lose my Solo 401(k). What to do now?
Replies: 17
Views: 2065

Re: Hiring my first employee, so will have to lose my Solo 401(k). What to do now?

*With the passage of the SECURE ACT effective on 1/1/2021, employees with >= 500 hours/year of service for >= three years are eligible. However, the counting of the years doesn't begin until 1/1/2021. Therefore, the earliest such employees become eligible is 1/1/2024. Spirit Rider, With the passage...
by ef11
Tue Sep 15, 2020 2:36 pm
Forum: Personal Investments
Topic: Whether to lapse term life insurance
Replies: 21
Views: 1425

Re: Whether to lapse term life insurance

Something is screwy with the mortality numbers. They show a male age 35 has a 6.83% chance of dying in 20 years. So the expected death benefits per year when your policy was issued are $1.5 million X .0683 / 20, or just over $5,000. But you’re paying only $600 per year. And I guarantee that your in...
by ef11
Tue Sep 15, 2020 2:34 pm
Forum: Personal Investments
Topic: Whether to lapse term life insurance
Replies: 21
Views: 1425

Re: Whether to lapse term life insurance

For $50 a month, I'd keep it for peace of mind. Let it expire at age 55 if no longer needed.

One thing to note, if health concerns do arise before you reach age 55, the policy is likely convertible to permanent which could be a smart move if you have new health concerns.
by ef11
Tue Sep 15, 2020 1:33 pm
Forum: Personal Investments
Topic: Hiring my first employee, so will have to lose my Solo 401(k). What to do now?
Replies: 17
Views: 2065

Re: Hiring my first employee, so will have to lose my Solo 401(k). What to do now?

If your one-participant 401k is at a provider other than Vanguard, you can elect employee eligibility restrictions. These restrictions can include up to age 21 and a minimum of one year of service >= 1,000* hours. This is elected in the adoption agreement. If you didn't elect at adoption, you can f...
by ef11
Tue Sep 15, 2020 1:20 pm
Forum: Personal Investments
Topic: Whole Life Insurance vs. Investing
Replies: 7
Views: 535

Re: Whole Life Insurance vs. Investing

I'm sure someone on this forum can put a great comparison together for you, but you need to provide more data. How old are you? What is the death benefit on the WL policy? What is your monthly premium being quoted at? Did they provide you an illustration? Did the illustration include Paid Up Additio...
by ef11
Mon Sep 14, 2020 3:24 pm
Forum: Personal Investments
Topic: Safer investments for 8m over 2-3 years?
Replies: 28
Views: 2866

Re: Safer investments for 8m over 2-3 years?

You say you may need the money in 3-5 years. So what about a 3-year MYGA? blueprintincome shows you can get a little over 2% with an A+ rated company. Over the 3 years, the $8 MM would earn about $500 M in interest. Doesn't seem to be the worst option for at least a part of the money. While I’m a f...
by ef11
Mon Sep 14, 2020 1:53 pm
Forum: Personal Investments
Topic: Roadmap for Mega Backdoor Roth-Enabled Solo 401(k) Without TPA
Replies: 11
Views: 668

Re: Roadmap for Mega Backdoor Roth-Enabled Solo 401(k) Without TPA

One thing to note, which is what I do. I put contributions that are going into After-Tax > Roth into my taxable brokerage account with Fidelity and allow that cash to settle. I then call Fidelity and ensure they move it from Taxable to NP After-Tax and then from NP After-Tax to Roth in the same day...
by ef11
Mon Sep 14, 2020 1:41 pm
Forum: Personal Investments
Topic: Safer investments for 8m over 2-3 years?
Replies: 28
Views: 2866

Re: Safer investments for 8m over 2-3 years?

You say you may need the money in 3-5 years.

So what about a 3-year MYGA? blueprintincome shows you can get a little over 2% with an A+ rated company.

Over the 3 years, the $8 MM would earn about $500 M in interest.

Doesn't seem to be the worst option for at least a part of the money.
by ef11
Mon Sep 14, 2020 1:15 pm
Forum: Personal Investments
Topic: Roadmap for Mega Backdoor Roth-Enabled Solo 401(k) Without TPA
Replies: 11
Views: 668

Re: Roadmap for Mega Backdoor Roth-Enabled Solo 401(k) Without TPA

I have used MySolo for Establishment Documents, 1099Rs, and will for the 5500 once I hit the $250,000 mark. They have been great to work with in my opinion and of course, will allow for the MBR. I have 3 Fidelity non-prototype retirement accounts and basically follow your exact process (without the ...
by ef11
Wed Sep 09, 2020 1:45 pm
Forum: Personal Investments
Topic: How much would you pay for access to "mega backdoor Roth"?
Replies: 5
Views: 791

Re: How much would you pay for access to "mega backdoor Roth"?

MySolo401k is $550 to establish and $125 per year, but no TPA as was mentioned. They do loan origination, form 5500, 1099s and that stuff though. I've used them for a couple of years and have had a great experience with them. I have an LLC filing an S-Election and pay myself a salary, so the max pre...
by ef11
Thu Sep 03, 2020 9:28 am
Forum: Personal Investments
Topic: Maximizing Taxable Accounts
Replies: 5
Views: 741

Re: Maximizing Taxable Accounts

Sounds like you are taking advantage of all tax-advantaged accounts you have access to (both 401ks) Next step would be the Backdoor Roth, and to do this you CANNOT move the old 401ks into an IRA. Instead, look to move those old 401ks into your current 401k. Next step is to research if either of your...
by ef11
Wed Aug 26, 2020 12:14 pm
Forum: Personal Investments
Topic: Mid-25s Financial Update
Replies: 8
Views: 1397

Re: Mid-25s Financial Update

Awesome start! Keep up the high savings rate and you will hit the $1 MM mark in the next 10 years.

I post very similar threads to this and it always helps me stay accountable, good job!
by ef11
Sat Aug 22, 2020 8:26 am
Forum: Personal Investments
Topic: Variable Annuity from Sept 2011 - Results
Replies: 9
Views: 732

Re: Variable Annuity from Sept 2011 - Results

Thanks for posting the results btw - they confirm about what I would expect from one of these VAs. You're welcome, that was the main point in posting was just to show an actual comparison of a real contract. I wish there was a database we could go to to see what life insurance salesman illustrated ...
by ef11
Fri Aug 21, 2020 3:49 pm
Forum: Personal Investments
Topic: Variable Annuity from Sept 2011 - Results
Replies: 9
Views: 732

Re: Variable Annuity from Sept 2011 - Results

VAs provide stock like returns with zero risk, right? :wink: This is probably one of the better performing ones too... I think you are thinking of Index Annuities with this statement, not Variable Annuities. Variable Annuities can be invested in equity funds and you get the full gain or loss minus ...
by ef11
Fri Aug 21, 2020 2:52 pm
Forum: Personal Investments
Topic: Variable Annuity from Sept 2011 - Results
Replies: 9
Views: 732

Variable Annuity from Sept 2011 - Results

Hello all, I saw a Brighthouse Variable Annuity statement and thought I would post the actual performance it has delivered since September 2011. I know a lot of people actually like to see how these things have performed, especially since VAs provide stock like returns with zero risk, right? :wink: ...
by ef11
Sun Aug 02, 2020 10:58 am
Forum: Personal Investments
Topic: Save® Market Savings Account - FDIC + 3.15% APY
Replies: 8
Views: 1038

Save® Market Savings Account - FDIC + 3.15% APY

Hello fellow Bogleheads, I stumbled across an ad for JoinSave and have been doing some research. They offer FDIC protection on your deposits (up to $1,000,000 if you authorize them to establish 4 accounts) and back-tested returns average 3.15%. It does have a 0.35% advisory fee IF you have positive ...
by ef11
Tue Jun 30, 2020 12:59 pm
Forum: Personal Investments
Topic: $250,000 Debt, High-Income Potential, beginner starting from ZERO
Replies: 58
Views: 8217

Re: $250,000 Debt, High-Income Potential, beginner starting from ZERO

You are at the right place at the right time, the beginning of your career. I am 31 and have been here for 8 years (when my career started) and it has allowed me to reach the $1 MM mark quicker than I thought possible. Listen to the people on this forum and stick to the plan, you will thank yourself...
by ef11
Tue Jun 30, 2020 12:52 pm
Forum: Personal Investments
Topic: Company suspends 401k match. What to do?
Replies: 29
Views: 2562

Re: Company suspends 401k match. What to do?

Yes you likely should keep contributing. The no match makes the Roth and the 401k equal as far as contribution bonus, both at $0 for the time being. But the 401k is still tax-deductible while the Roth is not. That will depend on what your situation is as to which you should do, but likely it makes s...
by ef11
Wed Jun 24, 2020 5:55 pm
Forum: Personal Investments
Topic: Cash out refinancings on the rise???
Replies: 13
Views: 1519

Re: Cash out refinancings on the rise???

As someone who just recently did a cash-out refi, it may be less of a problem than you imagine. Real-estate values have remained very high while interest rates have dropped. For me it was an opportunity to bolster my cash-reserves and other portions of my portfolio and reduce some equity in my hous...
by ef11
Tue Jun 23, 2020 1:54 pm
Forum: Personal Investments
Topic: solo 401k and mega backdoor
Replies: 8
Views: 483

Re: solo 401k and mega backdoor

Spirit Rider will provide the best solution I'm sure. But what seems easiest to me, open a new Solo 401k (I use Mysolo401k.net) and roll the funds from the old plan into the new plan. Having funds in the Solo 401k shelters them from pro-rata taxation if you are performing the regular backdoor Roth. ...
by ef11
Mon May 18, 2020 8:12 pm
Forum: Personal Investments
Topic: What to do with after-tax contributions to employer 401k?
Replies: 46
Views: 2172

Re: What to do with after-tax contributions to employer 401k?

Option 3. Every 3-6 months. MBR is an amazing tool. I’ve been taking advantage of 401k maxed out contributions for 3 years now. At 31 this will make such a huge difference since I’ve already maxed out all pre-tax options.
by ef11
Thu May 07, 2020 8:08 pm
Forum: Personal Investments
Topic: Cash balance plan closure; backdoor Roth; need help
Replies: 6
Views: 385

Re: Cash balance plan closure; backdoor Roth; need help

I can’t imagine paying 37% tax and moving all to Roth being the best move.

Do you have any self-employment income? If so open a Solo 401k and move it there.
by ef11
Thu Apr 30, 2020 8:23 am
Forum: Personal Investments
Topic: [Should I move from Ameriprise to Fidelity?]
Replies: 30
Views: 2244

Re: Fidelity

Our annuity is the Riversource RAVA 5 Advantage Variable annuity with a rider attachment. This annuity is not guaranteeing 6% earnings on the account value. Rather, the rider is a “withdrawal” or “income” benefit rider of some kind that is giving you minimal benefits for a fee of 1% or 1.5% per yea...
by ef11
Thu Apr 30, 2020 5:00 am
Forum: Personal Investments
Topic: [Should I move from Ameriprise to Fidelity?]
Replies: 30
Views: 2244

Re: Fidelity

Faith20879 wrote: Wed Apr 29, 2020 12:13 pm
PTwohey wrote: Wed Apr 29, 2020 10:29 am We have an annuity that earns 6% or market return. Whatever is greater.
That sounds like a wonderful deal. Mind sharing the details? Thanks!
Has to be too good to be true. Everyone would be all over this if it were true. A minimum 6% return every year...with no ceiling...no way.
by ef11
Thu Mar 19, 2020 5:31 pm
Forum: Personal Investments
Topic: Would somebody clue me in to what's going on inside MINT? [the PIMCO bond fund]
Replies: 11
Views: 860

Re: Would somebody clue me in to what's going on inside MINT? [the PIMCO bond fund]

I'm seeing this same activity with FLDR, Fidelity's Low Duration Fund.

Seemed a good 2% yield and virtually no risk, it has dropped 10% since recent highs....completely unexpected...
by ef11
Thu Mar 19, 2020 11:28 am
Forum: Personal Investments
Topic: Is this solid DCA strategy for cash deployment into world index during this bear market?
Replies: 16
Views: 851

Re: Is this solid DCA strategy for cash deployment into world index during this bear market?

At this pace your DCA looks a lot like a lump sum investment. But this has given me some guidelines and allowed me to take advantage of dips. Seriously ?? I know I am extremely lucky to have timed it like this and to have started DCA two months before this all happened, as well as getting new cash....
by ef11
Thu Mar 19, 2020 8:11 am
Forum: Personal Investments
Topic: Is this solid DCA strategy for cash deployment into world index during this bear market?
Replies: 16
Views: 851

Re: Is this solid DCA strategy for cash deployment into world index during this bear market?

At this pace your DCA looks a lot like a lump sum investment. But this has given me some guidelines and allowed me to take advantage of dips. Seriously ?? I know I am extremely lucky to have timed it like this and to have started DCA two months before this all happened, as well as getting new cash....
by ef11
Wed Mar 18, 2020 4:37 pm
Forum: Personal Investments
Topic: Is this solid DCA strategy for cash deployment into world index during this bear market?
Replies: 16
Views: 851

Re: Is this solid DCA strategy for cash deployment into world index during this bear market?

Beginning of this year I had about 50% cash due to K1 distributions and re allocating my accounts to be most tax-efficient. I set a 15 month plan to DCA new cash into my allocation, buying once per month at a MINIMUM. If there was a really bad day (RBD) I could advance those monthly purchases. As of...
by ef11
Fri Mar 13, 2020 6:57 am
Forum: Personal Investments
Topic: Invested at the peak of the market
Replies: 17
Views: 1255

Re: Invested at the peak of the market

Members of this forum prefer lump sum to DCA by a wide margin. It is a choice each investor has to make on his own. By the way, VTSAX is down about 30% from the peak. Due to many new accounts, K1 distribution, and realigning my allocation in each portfolio (tax-efficient with large taxable accounts...
by ef11
Thu Feb 06, 2020 9:42 pm
Forum: Personal Investments
Topic: Does it matter where I get my (husband's) solo 401k?
Replies: 6
Views: 535

Re: Does it matter where I get my (husband's) solo 401k?

I'm assuming the income level is high enough where you won't be interested in the Mega Backdoor Roth feature.

If he makes more than $190,000, you likely won't need this.

MySolo401k.net and Employee Fiduciary offer custom designed plans with more features though, just so you know.
by ef11
Thu Feb 06, 2020 9:36 pm
Forum: Personal Investments
Topic: Solo 401K Questions
Replies: 9
Views: 636

Re: Solo 401K Questions

you do not have to register with the state as a sole prop Tamarind is not correct with regards to the contribution limits to your solo 401k Your solo 401k plan as an unrelated employer has an annual addition limit of $57k in 2020. Your employee deferral limit in 2020 is $19.5k, this aggregates acro...
by ef11
Thu Feb 06, 2020 9:11 pm
Forum: Personal Investments
Topic: Young Investors - Need Advice on Mortgage vs 401k
Replies: 17
Views: 921

Re: Young Investors - Need Advice on Mortgage vs 401k

You are doing great. I would adjust the 401k to Roth as many others have advised being in the 12% bracket. Max out both your Roth IRAs. Pay down the mortgage, that is a high enough rate where you can justify paying it as soon as possible instead of investing additional dollars. Keep seeking advice o...
by ef11
Wed Feb 05, 2020 9:41 am
Forum: Personal Investments
Topic: Current Environment - Short-Term High Yield vs. Total Bond vs. LT Corp Bond?
Replies: 17
Views: 1602

Re: Current Environment - Short-Term High Yield vs. Total Bond vs. LT Corp Bond?

Thank you all for the replies. It seems for the most part the consensus is that for the bond portion of your allocation, especially with new money coming in, keeping it in a money market fund probably makes the most sense vs. investing in any of these bond funds currently. I agree with this strateg...
by ef11
Mon Feb 03, 2020 10:46 am
Forum: Personal Investments
Topic: Employee Fiduciary Solo 401(k) with MegaBackdoor Roth and TPA - Discussion
Replies: 64
Views: 3054

Re: Employee Fiduciary Solo 401(k) with MegaBackdoor Roth and TPA - Discussion

Executive Summary: Employee Fiduciary's solo 401(k) allows for Mega Backdoor Roth to be executed for a $500/year plan fee (plus $500 plan establishment fee), which includes TPA and recordkeeping services. In-plan Roth rollovers are $100 each and rollovers of voluntary after-tax contributions to a R...
by ef11
Sun Feb 02, 2020 2:57 pm
Forum: Personal Investments
Topic: Employee Fiduciary Solo 401(k) with MegaBackdoor Roth and TPA - Discussion
Replies: 64
Views: 3054

Re: Employee Fiduciary Solo 401(k) with MegaBackdoor Roth and TPA - Discussion

A regular solo 401k with Roth option allows both employee and employer contributions. Once you hit the max employee contributions, you just contribute the rest as employer contributions, and the combined limit is the same as the limit on the MBR. In the case of a Solo 401k, what benefit does the MB...
by ef11
Sun Feb 02, 2020 12:10 pm
Forum: Personal Investments
Topic: Employee Fiduciary Solo 401(k) with MegaBackdoor Roth and TPA - Discussion
Replies: 64
Views: 3054

Re: Employee Fiduciary Solo 401(k) with MegaBackdoor Roth and TPA - Discussion

Great discussion here. EF shows their Solo 401k costs $100 to establish and $200 per year + 0.08% of plan assets . I'm assuming they charge $500 to establish and $500 per year IF you add the Mega Backdoor Roth capabilities (let's be honest, most people setting this up would want this). They would st...
by ef11
Sun Feb 02, 2020 10:48 am
Forum: Personal Investments
Topic: Current Environment - Short-Term High Yield vs. Total Bond vs. LT Corp Bond?
Replies: 17
Views: 1602

Re: Current Environment - Short-Term High Yield vs. Total Bond vs. LT Corp Bond?

Thank you all for the replies. It seems for the most part the consensus is that for the bond portion of your allocation, especially with new money coming in, keeping it in a money market fund probably makes the most sense vs. investing in any of these bond funds currently. I agree with this strateg...