Search found 37 matches

by doublenickel
Wed May 29, 2013 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Simplicity [of My Portfolio]
Replies: 14
Views: 1818

Re: Simplicity [of My Portfolio]

Just a quick question, bulldog1: how do you keep your taxable funds in balance? New contribs, adjusting dividend/interest flows, etc.?

And also I assume you keep the same AA in taxable as the balanced funds have in your IRAs/401ks? Thanks.
by doublenickel
Wed May 30, 2012 11:37 am
Forum: Personal Finance (Not Investing)
Topic: IRS audit for 2010 Roth conversion
Replies: 8
Views: 2292

Re: IRS audit for 2010 Roth conversion

I am happy to report that today I received a notice from the IRS that my CP2000 inquiry is closed and no tax is due. Thanks to all the Bogleheads who gave me perspective on this matter and encouragement to deal with it.
by doublenickel
Mon May 28, 2012 3:25 pm
Forum: Investing - Theory, News & General
Topic: MEMORIAL DAY
Replies: 8
Views: 1726

Re: MEMORIAL DAY

I salute my father and his two brothers, all of whom served in the US Navy in WWII. May we always remember their service, all the sacrifices in all wars, and may we ever be vigilant.
by doublenickel
Sat May 26, 2012 5:54 pm
Forum: Personal Consumer Issues
Topic: Walkable or bike-friendly cities for retirement
Replies: 74
Views: 7059

Re: Walkable or bike-friendly cities for retirement

Not an urban area, but Hilton Head Island, SC is very bike-friendly.
by doublenickel
Thu May 03, 2012 2:39 pm
Forum: Investing - Theory, News & General
Topic: Are We Overselling Tax-Efficient Asset Location?
Replies: 86
Views: 6934

Re: Are We Overselling Tax-Efficient Asset Location?

I think people should be thinking, "is it worth an extra (let's say) 25 bps of expected return to be shifting more risk to my taxable accounts, which I might actually use in a shorter time-frame than my tax-advantaged accounts?" Amen. I have this same perspective and concern, whether it fits Bogleh...
by doublenickel
Wed May 02, 2012 9:34 am
Forum: Investing - Theory, News & General
Topic: Are We Overselling Tax-Efficient Asset Location?
Replies: 86
Views: 6934

Re: Are We Overselling Tax-Efficient Asset Location?

It looks like the devil's in the...assumptions!
by doublenickel
Wed May 02, 2012 9:30 am
Forum: Investing - Theory, News & General
Topic: ETFs v. Mutual Funds
Replies: 13
Views: 1373

Re: ETFs v. Mutual Funds

Stick w/ funds and compare your results to your "ETF trading" friends in 10 years or so. Bet you'll see a difference, and it will be in your favor!
by doublenickel
Wed May 02, 2012 9:10 am
Forum: Investing - Theory, News & General
Topic: Exciting new changes to 401(k) plan
Replies: 4
Views: 627

Re: Exciting new changes to 401(k) plan

Same thing happened to my wife's 401k plan recently. The plan now includes excellent Vanguard core index offerings including global stock diversification, TBM, and Tips, all with very low ERs. Finally!!!
by doublenickel
Tue May 01, 2012 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis for retirement accounts
Replies: 25
Views: 7277

Re: Cost basis for retirement accounts

I believe your first points are correct.

On the conversion, IRS form 8606 probably applies. Did you file with your taxes? You might have been able to "recharacterize" (a technical term) your contribution from Roth back to traditional IRA. IRS Publication 590 details all about IRAs.
by doublenickel
Tue May 01, 2012 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Efficient Fund Placement
Replies: 28
Views: 2132

Re: Tax Efficient Fund Placement

Sorry bob's not my name, I don't get your points. Yes, I have read the wiki artlcle on tax-adjusted allocations, but it's "above my pay grade." Easy Rhino, appreciate your insights. My difficulty with the planner's recommendations is the high stock part of taxable. 75/25 is risky for the pot of mone...
by doublenickel
Tue May 01, 2012 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: retirement withdrawals
Replies: 7
Views: 1056

Re: retirement withdrawals

I'm no expert, but my reading and research indicates the 4% would be your starting point, for $24k the first year. Then you apply the inflation factor to the $24k, so for example at 3.5% inflation you would take $24,840 the next year, and so on. This is the basic understanding of an inflated SWR. It...
by doublenickel
Tue May 01, 2012 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Efficient Fund Placement
Replies: 28
Views: 2132

Re: Tax Efficient Fund Placement

Ok, Taylor, I suppose bonds in Roths might make sense if one needs additional "space" for bonds. But wouldn't a person want his Roths to compound and grow tax-free with a higher-yielding (presumably, hopefully, over time) asset class like stocks, if s/he has enough space for bonds in 401k/IRA? I wou...
by doublenickel
Tue May 01, 2012 9:55 am
Forum: Investing - Theory, News & General
Topic: Two Questions: MPT, Portfolio Managment
Replies: 23
Views: 1540

Re: Two Questions: MPT, Portfolio Managment

You have read good books! I'm not a tilter, because I prefer simplicity. As to the more complicated portfolio, keep in mind there are no guarantees as to outperformance of the various asset classes you are considering, or their combinations. Over time they will rotate, which is where the rebalancing...
by doublenickel
Tue May 01, 2012 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Tax Efficient Fund Placement
Replies: 28
Views: 2132

Re: Tax Efficient Fund Placement

@doublenickel, perhaps the ZERO taxes in retirement thread is just for you: http://www.bogleheads.org/forum/viewtopic.php?f=2&t=87471 It practically requires one to have only equities in taxable and bonds in tax-advantaged. However, some folks fall into behavioral finance traps, so they need some m...
by doublenickel
Tue May 01, 2012 8:37 am
Forum: Investing - Help with Personal Investments
Topic: Tax Efficient Fund Placement
Replies: 28
Views: 2132

Re: Tax Efficient Fund Placement

I struggle w/ the concept of tax efficient fund placement. A Vanguard CFP planner suggested the following portfolio for me and my wife: Taxable: TSM TISM Intermediate munis Cash 401k/IRA: TBM Roths: TSM Even though this follows common wisdom a la Bogleheads, I have resisted implementing this portfol...
by doublenickel
Sat Apr 28, 2012 5:52 pm
Forum: Investing - Theory, News & General
Topic: withdraw from 401k to rollover for IRA
Replies: 16
Views: 1624

Re: withdraw from 401k to rollover for IRA

Not sure of mechanics of transfer, but as to your firm question, I would use Vanguard. They have specialists who can answer all of your questions at a 1-800 number. Check out Vanguard.com for more info.
by doublenickel
Sat Apr 28, 2012 5:48 pm
Forum: Investing - Theory, News & General
Topic: Buckets vs Traditional Boglehead Allocation
Replies: 25
Views: 3246

Re: Buckets vs Traditional Boglehead Allocation

I'm curious, Ozonewanderer, whether you employ your assets in an asset location tax-efficient order, i.e., stocks in taxable and most or all bonds in tax-deferred. I think your bucket ideas are sound and make sense, but I cannot reconcile your method with asset location as a strategy. Take this from...
by doublenickel
Sat Apr 28, 2012 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Thank You Very Much
Replies: 17
Views: 1508

Re: Thank You Very Much

Doc, you seem to be on the right road re finances, etc.

The only thing I would add is don't forget - in your focus on the future - to enjoy your life, and your life together, in the present.

All the best-
by doublenickel
Fri Apr 27, 2012 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: IRS letter: HELP!
Replies: 32
Views: 5044

Re: IRS letter: HELP!

For item 2/ of OP, any contribs to a non-deductible traditional IRA must be reported on IRS Form 8606. Also, Roth conversions are reported on that same form. Did you or your accountant complete this form? If not, that will complicate your situation. FYI, I got a CP2000 letter from the IRS recently a...
by doublenickel
Fri Apr 27, 2012 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Income Flow Diagram
Replies: 33
Views: 3710

Re: Income Flow Diagram

And better yet, $6,000 each, if over age 50!!!
by doublenickel
Fri Apr 27, 2012 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Can someone explain income taxes to a layman (Barney Style)
Replies: 11
Views: 1569

Re: Can someone explain income taxes to a layman (Barney Sty

A couple of extra points: 1/ If you get into a 401k at work, that money will go in pre-tax, so it will reduce your taxable income for the year. That is a good thing. If your employer matches some of your contributions, that's so-called "free money." 2/ Most folks get some types of deductions (either...
by doublenickel
Fri Apr 20, 2012 1:05 pm
Forum: Investing - Theory, News & General
Topic: What's the hardest thing for you about "lazy investing"?
Replies: 31
Views: 2781

Re: What's the hardest thing for you about "lazy investing"?

Keeping it simple...when everything you hear and read says to "complexify" things.
by doublenickel
Thu Apr 19, 2012 9:14 am
Forum: Investing - Help with Personal Investments
Topic: I am interested in some feedback!
Replies: 10
Views: 1011

Re: I am interested in some feedback!

RobertC, Your "ad nauseum" comment may reflect a little bit of analysis paralysis. I can relate; same problem. You will see a common theme on this board that says - "when in doubt, keep it simple." More complexity = more anxiety. Do I have the right slices of the slice-n-dice universe? How will you ...
by doublenickel
Tue Apr 17, 2012 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Your Dumbest Financial Move
Replies: 166
Views: 18067

Re: Your Dumbest Financial Move

1/ We loaned $1600 to sister-in-law for saving house, which worked; she sold it, then never paid back. Couldn't pursue because had to "keep peace" in the family. Expensive lesson. 2/ Held 10-year employer stock options too long, to see the price plummet; they were worth $300k at one time, but now -0...
by doublenickel
Tue Apr 17, 2012 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Should I fund a non-deductible IRA
Replies: 23
Views: 2677

Re: Should I fund a non-deductible IRA

The pro-rata rule prohibits me from converting my TIRA; would trigger too much tax. Do you have a 401(k) or similar plan? Does it allow incoming rollovers from IRAs? Brian No 401k, rolled it over to TIRA some years ago. I would do traditional contribs, then convert annually to Roth, like we're doin...
by doublenickel
Tue Apr 17, 2012 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should I fund a non-deductible IRA
Replies: 23
Views: 2677

Re: Should I fund a non-deductible IRA

In that case, have you considered using a taxable account rather than a non-deductble IRA? It's probably a better choice unless you specifically need room for things that should not go into a taxable account. We have taxable investments, too. As to TIRA, I am hoping - with future low-income years i...
by doublenickel
Tue Apr 17, 2012 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Just need to share this
Replies: 53
Views: 4803

Re: Just need to share this

Congrats! One of the happiest days of my life was when I sent in my last payment to own house "free and clear." You will like not making that payment when it's finished.

All the best-
by doublenickel
Tue Apr 17, 2012 12:19 pm
Forum: Personal Consumer Issues
Topic: Advice on retirement...not financial, but what to do all day
Replies: 72
Views: 7211

Re: Advice on retirement...not financial, but what to do all

As to good books, I recently read the following and found it helpful to stimulate thinking about a lot of retirement issues:

What Color is Your Parachute - for Retirement

By Nelson & Bolles.

Your library should have it.

Happy reading!
by doublenickel
Tue Apr 17, 2012 8:23 am
Forum: Investing - Help with Personal Investments
Topic: Smartest Financial Move You Ever Made
Replies: 139
Views: 19060

Re: Smartest Financial Move You Ever Made

I paid interest on a credit card one time earlier in life; it almost made me sick to pay "extra" for the product. Have never done it since!
by doublenickel
Sun Apr 15, 2012 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should I fund a non-deductible IRA
Replies: 23
Views: 2677

Re: Should I fund a non-deductible IRA

The pro-rata rule prohibits me from converting my TIRA; would trigger too much tax.
by doublenickel
Sun Apr 15, 2012 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: IRS audit for 2010 Roth conversion
Replies: 8
Views: 2292

Re: IRS audit for 2010 Roth conversion

Thanks, tooluser, for the input. I believe I'm right on my position, and will document to the IRS as you noted. I'm not worried. It IS a hassle though. :annoyed
by doublenickel
Sun Apr 15, 2012 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Should I fund a non-deductible IRA
Replies: 23
Views: 2677

Re: Should I fund a non-deductible IRA

We did non-deductible contribs to traditional IRAs for some years. Recently we were able to convert my wife's and pay a pittance of tax, so she has a bigger Roth going forward. I still contribute to my traditional (non-deductible) IRA to maintain some level of tax diversification - thinking who know...
by doublenickel
Sun Apr 15, 2012 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Audit - Backdoor Roth
Replies: 59
Views: 17460

Re: IRS Audit - Backdoor Roth

Got the same CP2000 notice. :shock: Obviously the IRS didn't review my 8606 filing to see most of their supposed "extra income" was indeed non-deductible contributions, and thus not taxable. I am sending a letter back with a copy of the 8606 as well as the 5498 from Vanguard showing I made a convers...
by doublenickel
Sun Apr 15, 2012 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: IRS audit for 2010 Roth conversion
Replies: 8
Views: 2292

Re: IRS audit for 2010 Roth conversion

Thanks, stan1. Those threads hit the nail on the head. Always good to see you're not alone on an issue. :happy
by doublenickel
Sun Apr 15, 2012 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: To REIT or not to REIT
Replies: 39
Views: 5677

Re: To REIT or not to REIT

I got out of Reits because they're a tilt, and I don't tilt anymore. Just total market funds.
by doublenickel
Sun Apr 15, 2012 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: IRS audit for 2010 Roth conversion
Replies: 8
Views: 2292

IRS audit for 2010 Roth conversion

Hi Bogleheads, I received a notice from the IRS questioning amounts converted from a traditional IRA to a Roth in 2010. The account was all non-deductible money (except for a minor gain), and thus I thought it established a non-taxable basis in the IRA. I paid taxes on the gain part, but the IRS tho...