Search found 224 matches

by ef11
Wed Aug 21, 2019 8:18 pm
Forum: Personal Investments
Topic: Pros/Cons to rolling IRA into “old” 401k
Replies: 17
Views: 667

Re: Pros/Cons to rolling IRA into “old” 401k

A slight hijack here...But I have wondered for a long time... If a person leaves their employer and rolls their 401k to a Rollover IRA, and then is working for a company withOUT a 401k, could they open a SE 401k and roll the rollover IRA into it? I know they couldn't contribute to the SE 401k witho...
by ef11
Wed Aug 21, 2019 8:02 pm
Forum: Personal Investments
Topic: Pros/Cons to rolling IRA into “old” 401k
Replies: 17
Views: 667

Re: Pros/Cons to rolling IRA into “old” 401k

A slight hijack here...But I have wondered for a long time... If a person leaves their employer and rolls their 401k to a Rollover IRA, and then is working for a company withOUT a 401k, could they open a SE 401k and roll the rollover IRA into it? I know they couldn't contribute to the SE 401k withou...
by ef11
Wed Aug 14, 2019 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income
Replies: 46
Views: 2635

Re: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income

I find that the people that push these push the earnings tax deferral angle pretty hard. When you mention that eventually the earnings comes out at ordinary income rates vs partly capital gains it doesn't seem to phase them. More than likely the higher eventual ordinary income tax rates will cost y...
by ef11
Wed Aug 14, 2019 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income
Replies: 46
Views: 2635

Re: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income

Thank you all for the thoughtful replies. Certainly a bad CPA being discussed above. Wife's co-worker was sold 2 of these policies by her CPA. She asked me if I could help her understand why they hadn't really grown much over the past 9 years, even though she was expecting 5-6% return. I read the co...
by ef11
Tue Aug 13, 2019 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income
Replies: 46
Views: 2635

Re: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income

Thank you all for the replies. I agree that all I've ever been told is these products are trash, but when looking at the illustrations, they seem to look pretty good. So what other ammo can I use besides just saying they are crappy products? His main concern is that in retirement his 401k will be $1...
by ef11
Tue Aug 13, 2019 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income
Replies: 46
Views: 2635

Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income

Hello Bogleheads, I know what is to come of this thread...and I'm excited to read everyone's thoughts. I know everyone says these products are high-cost, low-performance trash that should be avoided at all costs. And I certainly tend to agree, but I would like some facts as I help educate my friend ...
by ef11
Sun Jul 14, 2019 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Switched to 1099 Income - Forming S Corp/LLC
Replies: 2
Views: 271

Switched to 1099 Income - Forming S Corp/LLC

This year I switched careers from Megacorp to being self-employed (1099 income) and have recently begun researching creating an S Corp or an LLC taxed as an S Corp for tax savings purposes. I have no employees and very limited business expenses. Age - 30 2019 Numbers: W2 Income - $52,000 Net Self-em...
by ef11
Thu Jun 13, 2019 2:52 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 2045

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

All of this is making me strongly consider winding down my solo 401k (documents from mysolo401k.net). I don’t foresee contributing to it at any point in the next 5-10 years and I just have a single fund in it right now. My next employer’s 401k has a brokerage window so maybe I’ll just roll it all i...
by ef11
Thu Jun 13, 2019 8:18 am
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 2045

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

Ok that makes sense, so I would pay a TPA an additional fee to ensure I am doing it the right way. Their pitch was that they can do this for me, or at least they made it seem that this was an all-inclusive solution that needed no further administration. I cannot comment with any sureness because I ...
by ef11
Wed Jun 12, 2019 6:56 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 2045

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

ef11 wrote: ↑Wed Jun 12, 2019 2:12 pm Well, this is what I was trying to do with MySolo401k. I figured $550 upfront and $125 a year was worth the peace of mind and ease of doing this all correctly. Every plan has an administrator. MYsolo401k is not an administrator. They provide you with a non-prot...
by ef11
Wed Jun 12, 2019 3:12 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 2045

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

I guess I should look for a good umbrella policy as well once this account begins to grow. What you really need is to find a low cost Third Party Administrator (TPA) to run your plan. People have been jumping on the mysolo401k option without knowing what they are doing. This is because they assume ...
by ef11
Tue Jun 11, 2019 8:11 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 2045

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

- It is a self-directed account, so you can use the money to invest in almost anything Hmmmm, are you sure? I know this can be done with an IRA but I can't recall hearing it about a 401k. Just doesn't feel right to me, but I have no knowledge of it either way. Yes, custom 401k plans can invest in a...
by ef11
Tue Jun 11, 2019 5:57 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 2045

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

Along with low expense ratios on the funds she uses with Vanguard, I don't know why anyone would use mysolo401k.net when you could use Vanguard, Fidelity, or others at much lower costs. Perhaps because it offers the after-tax account with in-service rollover to Roth (mega back door). It may also ac...
by ef11
Tue Jun 11, 2019 9:35 am
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 2045

Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

Hello, I recently left my MegaCorp and have joined a small company where I am paid via 1099. I have also established a Self Employed 401K with MySolo401K.net (shout out to them, it has been a great experience thus far). I have three accounts as part of this Solo 401K all established at Fidelity: a p...
by ef11
Sun Feb 24, 2019 8:47 am
Forum: Personal Investments
Topic: Fidelity Solo-401k referred to as Keogh?
Replies: 10
Views: 1895

Re: Fidelity Solo-401k referred to as Keogh?

southerndoc wrote:
Sat Feb 23, 2019 6:04 pm
Now if we can just get Fidelity onboard with electronic/ACH investments from our business accounts.
Yes I plan on opening a Fidelity SE 401K this year and am concerned about this. It seems ridiculous to mail a check....
by ef11
Sun Feb 10, 2019 1:58 pm
Forum: Personal Investments
Topic: Checking In After Seven Years
Replies: 10
Views: 3635

Re: Checking In After Seven Years

Great progress, and great job getting an early start. One thing I'll add. When you switch be being self employed, look into an Individual 401(k). On top of your contributions, that will allow your business entity to contribute as much as 25% of your compensation (up to $55k). And if you use a payro...
by ef11
Sat Feb 09, 2019 10:28 am
Forum: Personal Investments
Topic: Checking In After Seven Years
Replies: 10
Views: 3635

Re: Checking In After Seven Years

Biggest is realize you have been very lucky last 7 years. Being heavy in equities at the right time AND having a big inheritance is really about as lucky as a 30 year old investor can get. The pendulum ALWAYS swings the other way so would be ready for it. I would up my EF to 1 year of expenses. I w...
by ef11
Fri Feb 08, 2019 10:50 pm
Forum: Personal Investments
Topic: Checking In After Seven Years
Replies: 10
Views: 3635

Re: Checking In After Seven Years

I wanted to bump this now that the new year rush is over, I think it originally only spent five minutes on the first page. Mainly interested in getting thoughts around: - The changes I made to my 401K / SE 401K / Roth contributions to take full advantage of my change from W2 & 1099 to strictly 1099 ...
by ef11
Thu Jan 03, 2019 12:11 pm
Forum: Personal Investments
Topic: Checking In After Seven Years
Replies: 10
Views: 3635

Re: Checking In After Seven Years

1. Created a new taxable account only for inherited assets. I'm not sure what the community will think of this, but down the road I want to be able to clearly see what I have accumulated myself vs. what my loved ones left me in inheritance. Every time I see that account I am reminded of the ones th...
by ef11
Wed Jan 02, 2019 11:29 am
Forum: Personal Investments
Topic: Checking In After Seven Years
Replies: 10
Views: 3635

Checking In After Seven Years

Hello all, It has been almost seven years since my first post on this forum and since I started my career fresh out of college. I have taken a lot of advice from members on this forum, read several books on Asset Allocation and Wealth Management, and have been able to convince several of my friends ...
by ef11
Tue Jan 01, 2019 7:21 pm
Forum: Personal Investments
Topic: Optimize Use Of 401K and SE 401K: 1H 2019 W2 / 2H 2019 1099
Replies: 8
Views: 410

Re: Optimize Use Of 401K and SE 401K: 1H 2019 W2 / 2H 2019 1099

Now that I'm "putting pen to paper" I'm realizing I could have sheltered my small 2017 and 2018 1099 income (around $12,000 a year) in it's entirety by setting up a SE 401K and only contributing 6% of my W2 income to the deductible portion of my W2 401K. This would have allowed me to contribute 34% ...
by ef11
Tue Jan 01, 2019 3:31 pm
Forum: Personal Investments
Topic: Optimize Use Of 401K and SE 401K: 1H 2019 W2 / 2H 2019 1099
Replies: 8
Views: 410

Re: Optimize Use Of 401K and SE 401K: 1H 2019 W2 / 2H 2019 1099

Do you have any specific questions? I am asking for a critique of my approach to ensure I am maximizing tax advantaged space. Specifically around the calculation I did for the SE 401K EmployER contribution. This represents a total of $60,770 in contributions and the total limit is $56,000, so from ...
by ef11
Sun Dec 30, 2018 1:50 pm
Forum: Personal Investments
Topic: After Tax 401(k) to Roth IRA
Replies: 21
Views: 1279

Re: After Tax 401(k) to Roth IRA

This is simply the Mega Backdoor Roth. Many members of the forum, including myself, do this each year. It is a great benefit! You should max your pre-tax portion of your 401K and then try to put as much into your after-tax as possible. Using the regular backdoor and the Mega backdoor I am able to co...
by ef11
Sun Dec 30, 2018 11:04 am
Forum: Personal Investments
Topic: Optimize Use Of 401K and SE 401K: 1H 2019 W2 / 2H 2019 1099
Replies: 8
Views: 410

Optimize Use Of 401K and SE 401K: 1H 2019 W2 / 2H 2019 1099

Hello all and Happy New Year, I am now fairly certain that in June of 2019 I will be significantly switching income streams and want to ensure I am using my tax advantaged options to the best of my ability. Below are the details of each income stream: W2 Source: 401K, 6% employee contribution receiv...
by ef11
Sat Dec 29, 2018 11:59 pm
Forum: Personal Investments
Topic: Thoughts on Simple "Fossil Free"/"Low Carbon" Fund Portfolio for IRA?
Replies: 5
Views: 681

Re: Thoughts on Simple "Fossil Free"/"Low Carbon" Fund Portfolio for IRA?

The world's largest chemical company that generates >50% of its profits from fossil fuel derived products is the #29 holding in ESGV...I find that interesting. I haven't looking into this much myself, but certainly an interesting method to investing consciously. Will be interesting to see performanc...
by ef11
Fri Dec 28, 2018 10:02 pm
Forum: Personal Investments
Topic: Mega Back Door Mechanics With Fidelity
Replies: 4
Views: 412

Re: Mega Back Door Mechanics With Fidelity

I am in the same situation as you, my 401K and Roth are with Fidelity. My company's plan allows Mega Backdoor. I can do the after-tax withdrawal twice per year so I call them in June and in December to roll to my Roth. You can do this through the website, but the only delivery method is a paper chec...
by ef11
Sat Nov 24, 2018 6:47 pm
Forum: Personal Investments
Topic: Unqualified Roth Contribution + No TIRA + Mega Backdoor
Replies: 2
Views: 220

Unqualified Roth Contribution + No TIRA + Mega Backdoor

Hello all, I contributed $5,500 to my Roth in January assuming it would be qualified, but then received an unexpected distribution from a Trust that will put me over the income limits. I will receive this Trust distribution on a K-1 which will be placed on my Schedule D as long-term capital gains. N...
by ef11
Thu Oct 25, 2018 1:47 am
Forum: Personal Investments
Topic: Invested Just Before This Downturn (New to Investing)
Replies: 24
Views: 2677

Re: Invested Just Before This Downturn (New to Investing)

Looks like it is time for you to meet Bob in the link below. Stay the course and do not worry!

https://awealthofcommonsense.com/2014/0 ... ket-timer/
by ef11
Mon May 28, 2018 8:20 am
Forum: Personal Investments
Topic: Critique Opportunistic Rebalancing
Replies: 6
Views: 693

Re: Critique Opportunistic Rebalancing

I certainly understand that there are different strategies, but this study appears to show that there is in fact a "best method" when it comes to rebalancing which is to check ever 1-2 weeks and use a 20/10 rebalance and tolerance band threshold. I'm just thinking that this cannot apply to the inves...
by ef11
Sun May 27, 2018 8:41 am
Forum: Personal Investments
Topic: Critique Opportunistic Rebalancing
Replies: 6
Views: 693

Critique Opportunistic Rebalancing

Hello everyone, I'm sure many of you have read the thread and the full article on Opportunistic Rebalancing posted here https://www.bogleheads.org/forum/viewtopic.php?t=10670 The reason I am posting is fairly simple, I feel I will never rebalance using the recommended 20% rebalancing bands with 10% ...
by ef11
Mon Apr 09, 2018 10:30 am
Forum: Investing - Theory, News & General
Topic: Help Me Make The Case Against Online Trading Academy
Replies: 33
Views: 4429

Re: Help Me Make The Case Against Online Trading Academy

Online Trading Academy is a business that relies on dreamers and fools to stay solvent. Try to dissuade your co-worker, or is he a friend, by over encouraging him to go beyond simply learning how to trade, to teaching others how to do it. No trading experience necessary. The franchise requirements ...
by ef11
Sun Apr 08, 2018 12:16 pm
Forum: Investing - Theory, News & General
Topic: A simple question
Replies: 9
Views: 1059

Re: A simple question

The question is quite simple. Assume an all index fund portfolio produces a $10,000 gain. The odds are 4 of 5 an active fund strategy will earn less, and a 1 in 5 you’ll earn more. The average amount of loss is greater than the average amount of gain. Should you use active funds? A Case for Index F...
by ef11
Sun Apr 08, 2018 10:37 am
Forum: Investing - Theory, News & General
Topic: Help Me Make The Case Against Online Trading Academy
Replies: 33
Views: 4429

Re: Help Me Make The Case Against Online Trading Academy

20% over 30 years would multiply your investment by a factor of approx 240. $10,000 would be $2.4 million over 30 years. Approx 15 million over 40 years. If you contributed $10,000 every year and got these returns, you’d have hundreds of millions. Why are they wasting time pimping a course to chump...
by ef11
Sat Apr 07, 2018 8:39 pm
Forum: US Chapters
Topic: Houston Chapter
Replies: 85
Views: 21065

Re: Houston Chapter

I'm close to downtown and would also like to join. Any location is fine and I should be in town May 12th.
by ef11
Sat Apr 07, 2018 8:34 pm
Forum: US Chapters
Topic: Woodlands TX Bogleheads Master Thread
Replies: 11
Views: 3675

Re: Woodlands TX Bogleheads Master Thread

Sounds like a good turnout for the first meeting! I live closer to downtown Houston but would have loved to attend if I saw this earlier than now and was in town this weekend. Hopefully I can make it work in June.
by ef11
Sat Apr 07, 2018 7:10 pm
Forum: Investing - Theory, News & General
Topic: Help Me Make The Case Against Online Trading Academy
Replies: 33
Views: 4429

Re: Help Me Make The Case Against Online Trading Academy

What does youtube.com have to say about all this? Hey Livesoft, I'm not finding any blaring examples of it being a scam or anything like that when searching...if you have some links please share. And visions of sugarplums danced in his head. Tell him you certainly don't need to pay thousands to lea...
by ef11
Sat Apr 07, 2018 3:58 pm
Forum: Investing - Theory, News & General
Topic: Help Me Make The Case Against Online Trading Academy
Replies: 33
Views: 4429

Help Me Make The Case Against Online Trading Academy

Hello all, Devout Boglehead here and have been for the past 6 years (age 23-29). Recently had a disturbing conversation with a co-worker in his mid-50s that he had begun taking classes at "Online Trading Academy" so he could trade all of his life savings as well as his mother's life savings. The com...
by ef11
Sat Apr 07, 2018 10:04 am
Forum: Personal Investments
Topic: Starting to invest at 35, is this a good plan for retirement planning?
Replies: 32
Views: 4608

Re: Starting to invest at 35, is this a good plan for retirement planning?

Hey Jack, Looks like you are getting on the right path and while 35 might seem late to you, it is still earlier than many or even most Americans in my opinion. The most important things you can be doing for the time being is maxing your Roth and 457 plan. With your heavy weighting towards your taxab...
by ef11
Thu Apr 05, 2018 6:25 pm
Forum: Personal Investments
Topic: How do Bogleheads Take Advantage of Dips When Fully Invested?
Replies: 55
Views: 8697

Re: How do Bogleheads Take Advantage of Dips When Fully Invested?

Are you refering to the same? "5/25" is an often used rebalancing rule . One would then rebalance id an asset deviates either 5% in absolute terms or 25% in relative terms. Your 20% is it absolute or relative? Thanks for the reply. My 20% rebalancing band is on all asset classes and is relative. A ...
by ef11
Thu Apr 05, 2018 8:29 am
Forum: Personal Investments
Topic: Asset Allocation multiple accounts.
Replies: 9
Views: 1185

Re: Asset Allocation multiple accounts.

So just fill both of our Roth with the REIT even though that will be the only fund in them for right now correct Yes I believe that should be fine. My Roth was 100% REIT as well due to much cheaper ER and tax efficiency, but now due to Mega Backdoor Roth my Roth value is more than 10% of my total a...
by ef11
Thu Apr 05, 2018 7:32 am
Forum: Personal Investments
Topic: How do Bogleheads Take Advantage of Dips When Fully Invested?
Replies: 55
Views: 8697

Re: How do Bogleheads Take Advantage of Dips When Fully Invested?

My asset allocation is around 60% equities and 40% fixed income. I simply sell fixed income and buy equities. If I need to go the other way, I sell equities and buy fixed income. It is pretty simple to do that. Does that help? Thanks for the reply Livesoft. Yes I understand this basic principle but...
by ef11
Thu Apr 05, 2018 7:06 am
Forum: Personal Investments
Topic: Asset Allocation multiple accounts.
Replies: 9
Views: 1185

Re: Asset Allocation multiple accounts.

OP, please see the link below for tax efficient placement of funds. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement As mentioned before, set this up in a spreadsheet so it is easy to see and track. I treat my Roth and 401K as one big account. All of my REIT goes into my Roth due to a mu...
by ef11
Wed Apr 04, 2018 10:31 pm
Forum: Personal Investments
Topic: How do Bogleheads Take Advantage of Dips When Fully Invested?
Replies: 55
Views: 8697

Re: How do Bogleheads Take Advantage of Dips When Fully Invested?

My asset allocation is around 60% equities and 40% fixed income. I simply sell fixed income and buy equities. If I need to go the other way, I sell equities and buy fixed income. It is pretty simple to do that. Does that help? Thanks for the reply Livesoft. Yes I understand this basic principle but...
by ef11
Tue Apr 03, 2018 6:27 pm
Forum: Personal Investments
Topic: How do Bogleheads Take Advantage of Dips When Fully Invested?
Replies: 55
Views: 8697

How do Bogleheads Take Advantage of Dips When Fully Invested?

Hello all, I am a Boglehead and have been for the past 6 years which has worked out great for me. I know the general answer to my question is, check AA at fixed intervals, if it is unbalanced, rebalance it. BUT It can be frustrating when the market has a huge pullback yet you do not get to take adva...
by ef11
Thu Mar 15, 2018 8:19 am
Forum: Personal Investments
Topic: What Tax Advantaged Account To Put 1099 Income
Replies: 12
Views: 1122

Re: What Tax Advantaged Account To Put 1099 Income

Patrick, Spirit, thank you both for the help on this. I think I now have a better understanding. For 2017 I guess it is a mute point, I was unaware it had to be established by 12/31 of the same year. I would just set up a SEP-IRA this year and then a Solo 401K for 2018, but having a couple thousand ...
by ef11
Wed Mar 14, 2018 9:23 pm
Forum: Personal Investments
Topic: What Tax Advantaged Account To Put 1099 Income
Replies: 12
Views: 1122

Re: What Tax Advantaged Account To Put 1099 Income

Thank you all for the replies. So to summarize, the current 401K I have and the contributions to it in no way impact my ability to use a Solo 401K. I can open a Solo 401K and contribute all of the $10-15,000 1099 income as a traditional Solo 401K contribution since it is less than the $18,500 limit ...
by ef11
Sun Mar 11, 2018 9:18 am
Forum: Personal Investments
Topic: What Tax Advantaged Account To Put 1099 Income
Replies: 12
Views: 1122

Re: What Tax Advantaged Account To Put 1099 Income

Yes as PFInterest said; you can have a one-participant 401k, but like you said; there is an employee deferral limit (2018 = $18.5K) for all qualified plans. So since I am already maxing out my W2 Employer Sponsored 401K, the Solo 401K does nothing for me, correct? Maximum employer contributions are...
by ef11
Sun Mar 11, 2018 9:11 am
Forum: Personal Investments
Topic: What Tax Advantaged Account To Put 1099 Income
Replies: 12
Views: 1122

Re: What Tax Advantaged Account To Put 1099 Income

I added two additional points to my initial post: - ADDED - My employer where I receive 1099 pay does not provide any employer 401K contributions and no employees there have a solo 401K, only SEP-IRAs. - ADDED - There is a 50/50 chance that within the next year or two I am no longer a W2 employee an...
by ef11
Sat Mar 10, 2018 7:16 pm
Forum: Personal Investments
Topic: What Tax Advantaged Account To Put 1099 Income
Replies: 12
Views: 1122

What Tax Advantaged Account To Put 1099 Income

Hello all, I will try to keep this simple. I am trying to determine what type of tax advantaged account (SEP-IRA, Solo 401K, etc.) to put my secondary 1099 income into. Details about my situation below: - I am a W2 employee for my main job, and I max my 401K every year plus get an employer match plu...