Search found 240 matches

by bogleenigma
Thu Mar 09, 2017 10:57 pm
Forum: Personal Investments
Topic: Need 3% from $657K annually. What AA is best?
Replies: 21
Views: 4676

Re: Need 3% from $657K annually. What AA is best?

Personally, in retirement, my portfolio is going to be 50% VWINX (Wellesley Income) and 50% VSCGX (Lifestrategy Conservative Growth).
by bogleenigma
Wed Feb 15, 2017 11:42 pm
Forum: Personal Investments
Topic: Considering Asset Allocation Change -- HELP!
Replies: 2
Views: 711

Considering Asset Allocation Change -- HELP!

Ladies and Gents, My current portfolio is composed of an asset allocation that was put together for me by a reasonable financial advisor that I worked with some years ago before I felt confident managing my own portfolio. He helped rescue me from the vultures that put me in load funds, and charged a very reasonable AUM fee (0.5%). I've maintained the portfolio he put me in since then. I currently do 70% stock and 30% bonds, with equity 90% domestic and 10% international. I've considered the idea of increasing the latter to 20% but I'm totally uncomfortable with going higher. My bond portfolio is 40% VBTLX (Total Bond Market Admiral Shares), 40% VICSX (Intermediate Term Bond Index), and 20% VWEAX (High Yield Corporate Fund). This asset alloc...
by bogleenigma
Mon Feb 06, 2017 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sign on as a co-borrower on my wife's car loan?
Replies: 18
Views: 2787

Re: Should I sign on as a co-borrower on my wife's car loan?

Madbrain,
Thanks, that's the answer I needed to hear. Given that there is no mortgage, student loans, or any other type of debt, I'm not maximizing my credit score. From this perspective it makes sense to me to sign on to the loan. This should hopefully be useful to keep my credit score from decreasing too much.
by bogleenigma
Mon Feb 06, 2017 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sign on as a co-borrower on my wife's car loan?
Replies: 18
Views: 2787

Re: Should I sign on as a co-borrower on my wife's car loan?

With your scores its fairly insignificant. It's not like having an extra signer will lower your interest rate or anything like that. I was tracking a free credit score, probably a fake one, but still likely indicative of what my real one was doing. I noticed a few points drop after the car loan and after a few months payment, went up a point. Can't rule out noise from other factors. Anyway, you're signing up for unnecessary liability assumption, so that's a reason to not do it. But the imaginable situations where that matters is slim to none. Adding your name complicates matters, and may require another credit pull, and if you had poor credit, might actually make the interest rate worse, but again, not really a factor here. The overriding ...
by bogleenigma
Mon Feb 06, 2017 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sign on as a co-borrower on my wife's car loan?
Replies: 18
Views: 2787

Re: Should I sign on as a co-borrower on my wife's car loan?

My wife and I are going to be purchasing a Toyota RAV-4 in April and I wondering if it would be to my benefit to sign on to the loan with her. We're just now slowly getting into credit card churning and I'm wondering if the long term bump to my credit score could be of benefit to me to ensure that my credit score remains high despite credit card churning. We have a paid off house and thus no mortgage to use. We have no remaining student loans either. And no worries, we are "slowly" getting into the churning bit until we actually get the car purchased. Right now she has a FICO of 815 and I have a FICO of 802. That said, will having a few new credit cards open prior to seeking the car loan affect her ability to get the loan if hers...
by bogleenigma
Mon Feb 06, 2017 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sign on as a co-borrower on my wife's car loan?
Replies: 18
Views: 2787

Re: Should I sign on as a co-borrower on my wife's car loan?

Credit card "churning" (as you put it) aside, her car loan is your car loan since you're married right? Seems odd you're so worried about your FICO score if your home is paid off and you have no student loans or worries. As you know a FICO score is a number established based on past credit history. Using credit cards for points is fine usually if you have the discipline to use them correctly. I don't see why you would need a higher score than you have. I'm mostly afraid that by churning my score will drop below 750 and in the event that my own car tanks, I might have more difficulties getting a loan. This is highly unlikely since I have a 2011 Acura TSX with 120,000 miles, but it's possible. Also, for the cards with the highest b...
by bogleenigma
Mon Feb 06, 2017 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sign on as a co-borrower on my wife's car loan?
Replies: 18
Views: 2787

Re: Should I sign on as a co-borrower on my wife's car loan?

JimB, Churning credit cards for the bonuses for travel. For instance, already this year I have my hotel paid for on Bethany Beach, DE at an oceanfront hotel for a week in on-season, and I already have enough to pay for next year's vacation at an oceanfront hotel at Myrtle Beach, SC. I'm also planning to churn for airline miles as well. I'm hoping to save up enough to make some good trips outside of the continental United States in the very near future. I make a decent salary but my wife is a stay at home mom, and after saving 22% of my gross salary for retirement it doesn't leave a lot for the kind of travel experiences I want to have. My wife and I both have worked hard over the years to have excellent credit. It only makes sense to put ou...
by bogleenigma
Mon Feb 06, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Should I sign on as a co-borrower on my wife's car loan?
Replies: 18
Views: 2787

Should I sign on as a co-borrower on my wife's car loan?

My wife and I are going to be purchasing a Toyota RAV-4 in April and I wondering if it would be to my benefit to sign on to the loan with her. We're just now slowly getting into credit card churning and I'm wondering if the long term bump to my credit score could be of benefit to me to ensure that my credit score remains high despite credit card churning. We have a paid off house and thus no mortgage to use. We have no remaining student loans either. And no worries, we are "slowly" getting into the churning bit until we actually get the car purchased. Right now she has a FICO of 815 and I have a FICO of 802. That said, will having a few new credit cards open prior to seeking the car loan affect her ability to get the loan if hers ...
by bogleenigma
Fri Feb 03, 2017 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: GF has long commute, should we buy a house to avoid long commute?
Replies: 62
Views: 7590

Re: GF has long commute, should we buy a house to avoid long commute?

If you are not committed enough to her to get married, you are not committed enough to own property in common. It's perfectly reasonable to rent a house with her in the town where she works. Marrying someone who does not share your financial values is likely to work out very poorly.
by bogleenigma
Wed Feb 01, 2017 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: Small Company SIMPLE IRA Plan
Replies: 9
Views: 1730

Re: Small Company SIMPLE IRA Plan

Muddlehead,
Please tell your son to avoid brokers as they are all con artists. The broker will find some way of extracting ridiculous fees from him and will put your son's employees in actively managed funds. If your son's employees are reasonably intelligent they may even grow to resent him for setting up such a ridiculous plan. Just tell him to call Vanguard and get it set up with them and leave the broker out of this transaction.
https://investor.vanguard.com/what-we-o ... simple-ira
by bogleenigma
Fri Jan 27, 2017 12:59 pm
Forum: Personal Consumer Issues
Topic: Needing suggestions on purchasing a compact mirrorless camera
Replies: 4
Views: 670

Needing suggestions on purchasing a compact mirrorless camera

Ladies and Gents, I am in the market for purchasing a compact mirrorless camera. My wife has an older SLR but it's obviously heavy and bulky and I would like something that is more convenient to carry around so that I can take photos of the children. The camera on my iphone is great but it doesn't take the kind of quality photos that I would really like to have for posterity of my children. I know nothing about cameras. I don't even know what the proper price points would be. I'm thinking that I would need to spend at least $500 to get something of quality, but I am thinking that anything much above $1,000 would cost more than I would be comfortable spending. Folks, do you have any suggestions? Perhaps around the $500 and $1,000 price point...
by bogleenigma
Tue Jan 24, 2017 8:37 pm
Forum: Personal Investments
Topic: Why not high yield
Replies: 22
Views: 3999

Re: Why not high yield

Bob2Riches, You're opening up a can of worms here that many folks have very passionate beliefs about. Larry Swedroe, in particular, is not a fan. High yield bonds are a unique asset class and VWEHX is a particularly unique high yield bond fund. You will note that in years where high yield bond funds perform well, this fund tends to perform more poorly than other funds. This is chiefly because it invests in a safer segment of the high yield bond world than other funds in this asset class. You're not going to find anyone on this forum who is going to recommend a 100% allocation to this fund. Rick Ferri often recommended a 40% allocation to Total Bond, 40% allocation to TIPS, and 20% allocation to VWEHX. I personally use 40% Total Bond, 40% VI...
by bogleenigma
Mon Jan 23, 2017 12:01 am
Forum: Personal Consumer Issues
Topic: Does airline CC make sense if I plan to spend at least $1.5/yr on tickets
Replies: 13
Views: 2051

Re: Does airline CC make sense if I plan to spend at least $1.5/yr on tickets

This would be totally dependent on what your yearly spend is, how much you will really be spending on airline tickets/hotels each year, but if it would be sufficient, it could make sense to get a Chase Sapphire Preferred or Reserve and to couple it with the Chase Freedom Unlimited. I know that the annual fee for the Chase Sapphire Reserve seems daunting ($450), but it's important to consider that if you spend the travel credit of $300 (which is as broadly utilized towards airlines/hotels/rental cars), this is going to give you the biggest bang for your buck if you're wanting as much free travel as possible. That is, of course, unless you want to develop the hobby of credit card churning, which is far more lucrative. You would use the Chase ...
by bogleenigma
Fri Jan 20, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Does pharmacy school ranking matter?
Replies: 42
Views: 7754

Re: Does pharmacy school ranking matter?

So what are pharmacist salaries looking like
these days and how is the demand in
various parts of the country?
by bogleenigma
Sun Jan 08, 2017 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1421980

Re: What's Your Credit Card Rewards Strategy?

FedGuy,
If you really want a card that offers 3% back on dining and has no annual fee, the AARP Visa might fit the bill for you. It's 3% on dining and gas, no annual fee, and $100 bonus. http://www.aarpcreditcard.com/
by bogleenigma
Sun Jan 08, 2017 10:06 pm
Forum: Personal Investments
Topic: Suggestions for 70-year-old retiree's portfolio
Replies: 18
Views: 8188

Re: Suggestions for 70-year-old retiree's portfolio

Zuma, It seems pretty simple to just sell all the Morgan Stanley funds and switch to Vanguard funds. She's in the 15% federal tax rate, therefore she is in the 0% capital gains rate. I would skip the TIPS fund and just stick to a 3 fund portfolio. I'm a big fan of the target retirement or lifestrategy income funds, but with a taxable account it would seem to me to add further complication in terms of re-balancing. The Roth account should be 100% stock. In the 15% tax bracket you could hold total bond market in taxable, but for simplicity I would just keep all bonds in the Traditional IRA. It's entirely up to you whether you have any of her funds in international, but I, personally, would at least give her a 10% allocation to Total Internati...
by bogleenigma
Sat Jan 07, 2017 12:33 am
Forum: Personal Investments
Topic: 8.5% for 2016. Can I do better????
Replies: 27
Views: 5914

Re: 8.5% for 2016. Can I do better????

B83772,
I'm certainly not advocating that you mimic my portfolio, but I have a 70/30 portfolio and I had a 9.6% return for this year. Equities are 90% VTSAX and 10% VTIAX. Bonds are 40% VBTLX, 40% VICSX, and 20% VWEAX. I'm also 34 and perhaps I can afford to take a bit more credit risk. I am aware my bond allocation goes against typical Boglehead advice and I'm okay with that.
by bogleenigma
Tue Jan 03, 2017 10:49 pm
Forum: Personal Investments
Topic: Ideal allocation for someone who has reached their "number"
Replies: 38
Views: 6987

Re: Ideal allocation for someone who has reached their "number"

Retiring Type, I've listened to this discussion time and again and the most sensible conclusion I have heard here thus far is a liability matching portfolio. Figure out your annual living expenses (for you and spouse if there is one) - social security (for you and spouse if there is one) - pension (for you and spouse if there is one) x 20-25 years and that's how much you should have in fixed income. 2-5 years of that fixed income should be CD's/I-Bonds/Short Term Bonds (VCSH comes to mind if you want to reach for yield with low risk), with the remainder in an Intermediate Term Bond Fund (Total Bond Market Comes to mind) or split 50% TBM/50% TIPS. The remainder of your portfolio should be in stocks. This produces a portfolio that you can def...
by bogleenigma
Sun Dec 18, 2016 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Ultimate Rewards Questions and Chase Private Client to get beyond 5/24 Rule
Replies: 0
Views: 586

Ultimate Rewards Questions and Chase Private Client to get beyond 5/24 Rule

Ladies and Gents, I have fairly recently upped my credit card rewards game from just using cash back cards to churning. My wife and I recently received Chase Sapphire Reserve cards in both of our names in the mail and we're already racking up Chase Ultimate Rewards points. I would like to push this game as far as I can and I'm aware the 5/24 rule could get in my way. It has been suggested on this forum and elsewhere that a means of getting beyond the 5/24 rule is to open up an account with Chase and to become a Chase Private Client. The required amount to get Chase Private Client status is $250,000. I can fairly easily transfer $250k from my taxable account over to their brokerage. I have a couple of questions, however. 1). If I do move ove...
by bogleenigma
Sun Dec 11, 2016 11:32 pm
Forum: Personal Investments
Topic: Where to put young kids personal savings
Replies: 13
Views: 2903

Re: Where to put young kids personal savings

At this age they are too young to understand market risk. I-bonds and/or an Ally Bank Savings Account would be most appropriate, I think.
by bogleenigma
Sun Dec 11, 2016 2:25 pm
Forum: Personal Consumer Issues
Topic: Any experience with the Sleep Number bed?
Replies: 42
Views: 7789

Re: Any experience with the Sleep Number bed?

Five, I've slept on Sleep Numbers and every luxury mattress imaginable. Nothing compares to a Naturepedic EOS, particularly because you go to the store and get them to custom order it exactly how you like it. I have never slept on a mattress remotely comparable to how comfortable this thing is, even in some of the nicest hotels in the U.S. and Europe I have been to. Is it cheap? No. Is it worth it? Absolutely it is, particularly if you're like me and have had some injuries. The price you would pay in the store is typically 10% cheaper than you would pay from the website and if you're a healthcare professional most stores will give you a 5% discount. We like Naturepedic mattresses so much that the mattress in my daughter's crib (way way chea...
by bogleenigma
Sat Dec 10, 2016 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Opening up a business credit card for sign up bonus points
Replies: 1
Views: 441

Opening up a business credit card for sign up bonus points

Ladies and Gents,
This is a post seeking clarification regarding opening up credit cards for sign on bonuses. We're hoping to get a free week at a beach hotel next summer. I've heard several folks discuss opening up business credit cards to get additional points. I am an employee 5 days a week and my wife is a stay at home mom and has a small home business earning around $5k a year. I assume that I can open up a business card in her name. Will the credit card company ask for a TAX ID number from her business? Also, this is probably a stupid question, but given that I am a employee and have no side business of my own, there is no way I could open up a business card in my name, correct?
by bogleenigma
Wed Dec 07, 2016 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing a 2016 Honda CRV EX -- the best out the door price I have found is $25,875.20 -- is this reasonable?
Replies: 22
Views: 3107

Re: Purchasing a 2016 Honda Civic EX -- the best out the door price I have found is $25,875.20 -- is this reasonable?

livesoft wrote:I would look at the decision another way as well. What can one get for $26,000? In my area, one can get a used Lexus for that amount and it would probably have all the features of that Civic. But maybe you can get an Acura for that price, too?
I meant to put in CRV, not Civic. Please forgive.
by bogleenigma
Wed Dec 07, 2016 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing a 2016 Honda CRV EX -- the best out the door price I have found is $25,875.20 -- is this reasonable?
Replies: 22
Views: 3107

Re: Purchasing a 2016 Honda Civic EX -- the best out the door price I have found is $25,875.20 -- is this reasonable?

newbie001 wrote:
acura301 wrote:Ladies and Gents,
This is only the second time in my life I have ever negotiated on a vehicle. I am purchasing a 2016 Honda Civic EX. I have played the game via e-mail of negotiating the dealerships down the best I possibly can. The best out the door price (including registration and all fees) I have been able to negotiate down to is $25,875.20. Is this a reasonable price for this vehicle? Thanks.

That strikes me a rather high price- by several thousand at least. Use Edmunds or KBB sites to get a quote.
Oops, I put in the wrong thing. It's a CRV.
by bogleenigma
Wed Dec 07, 2016 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing a 2016 Honda CRV EX -- the best out the door price I have found is $25,875.20 -- is this reasonable?
Replies: 22
Views: 3107

Purchasing a 2016 Honda CRV EX -- the best out the door price I have found is $25,875.20 -- is this reasonable?

Ladies and Gents,
This is only the second time in my life I have ever negotiated on a vehicle. I am purchasing a 2016 Honda CRV EX. I have played the game via e-mail of negotiating the dealerships down the best I possibly can. The best out the door price (including registration and all fees) I have been able to negotiate down to is $25,875.20. Is this a reasonable price for this vehicle? Thanks.
by bogleenigma
Tue Dec 06, 2016 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to get a week on the beach with Credit Card Points -- Mariott Rewards Premier Credit Card(s) or other cards?
Replies: 15
Views: 2148

Trying to get a week on the beach with Credit Card Points -- Mariott Rewards Premier Credit Card(s) or other cards?

Ladies and Gents, I've been playing the credit card cash back game for the last few years and have sort of perfected my cash back game. In the last 12 months I've gotten about $2800 in cash back, which is about as far as I can play this game with our spend. I've avoided the credit card points game in the past because we fly very rarely and I didn't see how it would be beneficial enough for us to play it. Anyway, I have a new goal. I would like to have 6-7 days at Bethany Beach Ocean Suites in Bethany Beach, DE during 4th of July week. It is a Mariott affiliated hotel. The nights during the week we want cost 40,000 points a night. The Mariott Rewards Premier Card has 80,000 points for a sign on bonus per card, with 7,500 points for each addi...
by bogleenigma
Mon Oct 10, 2016 12:43 am
Forum: Personal Finance (Not Investing)
Topic: Need a QUICK will done prior to flying -- HELP!
Replies: 22
Views: 2609

Need a QUICK will done prior to flying -- HELP!

Ladies and Gents, I have an appointment set up in November with an attorney that I know to do our will and other documents. My wife, myself, and my daughter (age 2.5) are traveling via plane in a few weeks to Colorado. This is obviously statistically improbable, but what will happen if all three of us are in a plane crash? My parents are deceased, my brother is deceased, my grandparents are deceased. We live in Maryland. In the case of my wife and I dying, we would, of course, want everything to go to our daughter, with the child's maternal grandfather (or my brother-in-law) to manage her estate. In the event of all three of us dying (like in a plane crash) we would like to leave the bulk of our assets with my brother-in-law, with small amo...
by bogleenigma
Tue Sep 27, 2016 10:48 pm
Forum: Personal Consumer Issues
Topic: Bogleheads for Diet/Nutrition?
Replies: 66
Views: 9010

Re: Bogleheads for Diet/Nutrition?

Saving$ wrote:Is there a Boglehead like site or philosophy for Diet and Nutrition?
Many folks have recommended consultation with a dietician/nutritionist. I would take that further, and recommend a nutritionist that has passed their Certified Nutrition Specialist exam and ideally is a member of the American College of Nutrition. Academy of Nutrition and Dietetics tends to be a little bit behind on their recommendations in terms of following where the research is now.
by bogleenigma
Tue Sep 27, 2016 10:43 pm
Forum: Personal Consumer Issues
Topic: Bogleheads for Diet/Nutrition?
Replies: 66
Views: 9010

Re: Bogleheads for Diet/Nutrition?

I second that. Paul Jaminet's diet is pretty great for the average person. I think it's a bit carbohydrate rich for folks with significant obesity. But it's based on very sound nutritional principles.
by bogleenigma
Tue Sep 27, 2016 10:40 pm
Forum: Personal Consumer Issues
Topic: Bogleheads for Diet/Nutrition?
Replies: 66
Views: 9010

Re: Bogleheads for Diet/Nutrition?

I would point you to Michael Pollan's seven word approach, found in his book, In Defense of Food : --Eat food. --Mostly plants. --Not too much. That's the dietary equivalent of the three fund portfolio. I agree that Pollan's three criteria are the closest equivalent to Taylor's three-fund portfolio. My variation of Pollan's criteria is: --Avoid sugar and other carbohydrate-rich foods --Avoid juices, smoothies, power bars, and other processed foods marketed as "healthy" --Maximize vegetables, minimize fruits --Have a lot of pro-biotics and pre-biotics Victoria Too complicated IMO. Just stick to fresh produce and animals, no processed foods. Pollan's advice is perfect, though one could eliminate "not too much" because if ...
by bogleenigma
Tue Sep 27, 2016 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Does it matter what type of college one goes to?
Replies: 278
Views: 33009

post deleted
by bogleenigma
Mon Sep 26, 2016 1:19 pm
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Another Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

Regarding the spousal benefit. Is it really only going to be $1427? This is what the Social Security website says. Is it in error or am I reading it wrong? ""Survivors You have enough credits for your family to qualify for survivor benefits. If you die this year, certain members of your family may be eligible for these benefits: Your child: $1,937 a month Your spouse who is caring for your child: $1,937 a month Your spouse (starting at full retirement age): $2,583 a month Your total family benefits cannot be more than $4,522 a month. Your spouse or minor child may be eligible for a special one-time death benefit of $255." Or wait, is that her spousal benefit if I die right now? That probably makes more sense given the catego...
by bogleenigma
Mon Sep 26, 2016 11:25 am
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Another Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

...................... I would not be worrying about getting too much in tax deferred until it gets well over $1M and you can project it might be $2M when RMDs start. Suggest you at least wait until wife goes back to work and then make some projections where your taxes might be when you are age 70. JW The calculation I gave about my wife's SS is merely what the Social Security website notes is her spousal benefit under my Social Security. She did, in fact, contribute to Social Security when she worked in Tennessee, and has also done so when she worked in Maryland in Catholic schools. She has no pension from the latter. I'm locked out of the Social Security website under her name until she fixes it with them next week, but I recall that her...
by bogleenigma
Mon Sep 26, 2016 9:10 am
Forum: Personal Investments
Topic: Yet another Roth question
Replies: 8
Views: 1197

Re: Yet another Roth question

I agree with what the previous poster stated. You can get a rough idea what your taxes will be in retirement by running yours and your wife's numbers from the Social Security website based on what you think your retirement ages will be. Also, if you are unable to max out 401k's for both you and your wife, and Roth IRA's for you and your wife, I would strongly suggest you move some of that money from the non-retirement account (taxable account, I assume) into 401k or Roth IRA.
by bogleenigma
Mon Sep 26, 2016 8:27 am
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Another Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

Isn't the Married Filing Jointly Child Tax Credit Phase Out $110,000? Doesn't that mean that my income will be above levels to benefit from this? For MFJ, $110K is indeed when that credit begins to phase out as your income increases. When looking at your pre-tax deductions, it's when that credit begins to phase in as your AGI decreases that becomes relevant. See 7 Requirements for the Child Tax Credit : The child tax credit is reduced if your modified adjusted gross income (MAGI) is above...$110,000 for married couples filing jointly. For each $1,000 of income above the threshold, your available child tax credit is reduced by $50. It may be worthwhile for you to download the spreadsheet from Tools and calculators - Bogleheads - Toolbox (or...
by bogleenigma
Mon Sep 26, 2016 8:26 am
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

according to the social security website at age 70 I will get $3539 a month and her spousal benefit will be $2583, This can't be correct. Her spousal benefit will be 50% of your benefit at FRA. If your $3539 at age 70 is accurate, her spousal benefit is closer to $1427. 3539 / 1.24 = 2854 your benefit at FRA (age 67) 2854 * .5 = 1427 her spousal benefit Teen Persuasion, This is the line directly off of the website: "Survivors You have enough credits for your family to qualify for survivor benefits. If you die this year, certain members of your family may be eligible for these benefits: Your child: $1,937 a month Your spouse who is caring for your child: $1,937 a month Your spouse (starting at full retirement age): $2,583 a month Your ...
by bogleenigma
Mon Sep 26, 2016 12:06 am
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Another Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

I am fully aware that things could potentially change in the future.... So, here's my question -- does it really make sense to continue to make 100% of 403b contributions on my part to traditional currently Yes, especially next year when your federal marginal saving's rate will be 30% (child tax credit kicks in) for 403b contributions more than ~($10K + income, e.g. from beneficiary IRA, besides salary). You can check this with commercial tax software or Tools and calculators - Bogleheads - Toolbox . as well as her 403b and 457b contributions when she returns to work? Using your numbers in the tool linked above, you will have $40-some thousand dollars at 28% marginal savings before dropping to 25%. Or does it make sense to use some portion...
by bogleenigma
Sun Sep 25, 2016 11:51 pm
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Another Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

I'm just worried that at age 70.5 we're going to have huge amounts of money in Traditional and going to take far more in RMD's than we want to take. We can mitigate some of this, of course, by IRA Qualified Charitable Contributions. At the age of 70.5 the RMD only starts out at 3.65% or $36,500 for every million in the retirement account. Even with several million in retirement accounts a couple would be a long way from being in a very high tax bracket. See table III here; https://www.bogleheads.org/wiki/IRA_distribution_tables The RMD does not really get high until you are in your late 80's but by then you will have had about 20 years to do Roth conversions. It is too soon to pay 30% in taxes for the Roth with the hope that everything wil...
by bogleenigma
Sun Sep 25, 2016 11:34 pm
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Another Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

You are clearly in great shape! In your mid-30's you have a good income, a paid off house, and something getting close to $1M in retirement and other savings. One the other hand, much of this appears to be from inheritance so future net-worth growth is likely to be much slower. Your 403b & tIRA tax deferred accounts are not large yet. You will only be adding one $18k (plus match) to your 403b accounts for the next ten years until wife returns to work and you again have two incomes. You will keep on doing the $5.5k/year each into your Roths. IMO, this is a pretty good balance. A combination of a large pension, large tax deferred account RMDS, and large SS benefits is indeed a recipe for high retirement taxes. This indeed would make you ...
by bogleenigma
Sun Sep 25, 2016 9:53 pm
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Another Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

Watty wrote:
acura301 wrote:

38% of your new contributions are already going into Roth accounts.

When you are in your late 50 the picture might be clearer but you could do Roth conversions then if the tax laws don't change.
How would this change, though, when my wife returns to work and we're contributing to both her 403b and her 457b?

I'm just worried that at age 70.5 we're going to have huge amounts of money in Traditional and going to take far more in RMD's than we want to take. We can mitigate some of this, of course, by IRA Qualified Charitable Contributions.
by bogleenigma
Sun Sep 25, 2016 9:46 pm
Forum: Personal Consumer Issues
Topic: Three Full Days in Asheville, NC - Help for First Timers
Replies: 30
Views: 4943

Re: Three Full Days in Asheville, NC - Help for First Timers

When we lived in Tennessee Asheville was our favorite weekend getaway. We live in Maryland now so it's less convenient. 1) If you're interested in herbs or herbal medicine, this is the herbalism capital of the United States. There are several herbal medicine schools around and plenty of herb shops. I will occasionally attend the Medicines of the Earth Symposium in Black Mountain NC because it offers cheap CE for nurse practitioners and it's a good excuse to make a partially tax deductible vacation to Asheville. If this is something of interest, this is a great place to be. 2) The Biltmore, as noted above. Deerpark has a great reputation but I have never eaten there. 3) There are several great art galleries/art stores in town, but one of my ...
by bogleenigma
Sun Sep 25, 2016 9:05 pm
Forum: Personal Investments
Topic: Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA
Replies: 18
Views: 1715

Re: Another Traditional versus Roth 401k question accounting for social security and one pension and a beneficiary IRA

To preface, I read your entire post like you were in a scifi movie and the bomb is about to go off as you perilously explain your situation. With that said: 1) You are doing fantastically fine for being in your mid 30s, you should not be freaking out at all. 2) As you are maxing out your Roth IRA, I don't see either side being an issue - 25% is about the median ground of taxes for future planning. You can put it in a Roth and know that you don't have to worry about tax brackets increasing in the future and/or trying to take it out when tax advantageous. Alternatively, you can put it in a traditional and if you do retire before beginning to withdrawal your SS (for example, when your wife is between 67 and 70), you will make out fairly well....
by bogleenigma
Fri Sep 23, 2016 11:10 pm
Forum: Personal Investments
Topic: Apps or Spreadsheets to Help With Rebalancing
Replies: 16
Views: 2934

Re: Apps or Spreadsheets to Help With Rebalancing

ThankYouJack wrote:
acura301 wrote:Folks, can you direct me to any apps or spreadsheets that help with rebalancing? I'm fairly good at doing this myself manually, but I would like to find something that is "fool proof" for my wife to use in the event of my demise. Any suggestions?
How about just a target date fund?
We have a sizable taxable account.
by bogleenigma
Thu Sep 22, 2016 9:07 pm
Forum: Personal Investments
Topic: Apps or Spreadsheets to Help With Rebalancing
Replies: 16
Views: 2934

Apps or Spreadsheets to Help With Rebalancing

Folks, can you direct me to any apps or spreadsheets that help with rebalancing? I'm fairly good at doing this myself manually, but I would like to find something that is "fool proof" for my wife to use in the event of my demise. Any suggestions?
by bogleenigma
Wed Sep 14, 2016 9:19 pm
Forum: Personal Investments
Topic: Spousal IRA -- Traditional vs Roth
Replies: 27
Views: 2903

Re: Spousal IRA -- Traditional vs Roth

So it sounds like you are in the the 25% bracket for now, but 8 years later you will be in the 28% bracket except that with 3x $18k pre-tax contributions you may be able to reduce yourself back down to the 25% bracket. Then, 20 years after that, your wife will retire with a pension and SS, while you might not ever retire. Based on that, it sounds like you will be well into the 25% bracket both now and in retirement, and you might end up with too much tIRA/401k/403b. I don't know how much your 2xSS+pension would be, but it seems like $75k+/yr would not be surprising, and that would almost put you in the 25% bracket by itself. I'd say try to make the most of the 25% bracket that you can. Can you do roth 403b now? If so, do all roth contribut...
by bogleenigma
Tue Sep 13, 2016 8:29 pm
Forum: Personal Investments
Topic: Spousal IRA -- Traditional vs Roth
Replies: 27
Views: 2903

Re: Spousal IRA -- Traditional vs Roth

My wife is a SAHM and we're in the 28% tax bracket (after 403b contribution) . Christopher, does this mean that you would be in the 33% tax bracket if you did not contribute to Traditional 403b or contributed Roth 403b instead. If this is the case, you're at the top of the 28% tax bracket. For 2016, MFJ 28% tax bracket applies for Taxable Income from 151K to 231K which implies AGI of at least 171K to 251K. If you're at the top of the 28% tax bracket, your AGI and MAGI for Traditional IRA purposes may be at a level that would not allow your wife to take the Traditional IRA deduction. If ineligible for TIRA deduction, she should just keep contributing to Roth IRA, via backdoor if necessary. Since you are covered by an employer plan, your non...
by bogleenigma
Tue Sep 13, 2016 7:53 pm
Forum: Personal Consumer Issues
Topic: Suggestions for locations for post-Christmas vacation in Carribbean?
Replies: 13
Views: 1889

Re: Suggestions for locations for post-Christmas vacation in Carribbean?

Flying over the holidays like that I would start by seeing where you can get direct flights to. The problem with holiday travel is that every connection that you makes gives you a chance to miss a flight or have a flight cancelled and with four people traveling together finding an alternate flight would be very hard. Also try to get a flight early in the day since early flights are less likely to be disrupted by bad weather in other parts of the country. I don't know how it would be with kids but you might be able to get direct flights to Cancun to go to the Mayan Riviera which is the coast area south of Cancun, like Playa del Carmen, where there are a lot of all inclusive resorts. When they kids are a lot older there are lots pyramids and...
by bogleenigma
Tue Sep 13, 2016 7:51 pm
Forum: Personal Investments
Topic: Spousal IRA -- Traditional vs Roth
Replies: 27
Views: 2903

Re: Spousal IRA -- Traditional vs Roth

One thing that has not been mentioned is that with some of the amounts being mentioned that the "traditional vs Roth" question is that the estate planning issues could be more of a factor than the taxes your will pay in your lifetime. Your heirs could be in a lower tax bracket or if you leave the retirement account to a charity then the taxes might not need to ever be paid. It is important to remember that the OP is still pretty young and they are expecting a second baby so I would assume that they are likely in their 30's. I only recently retired but I have seen a lot of people have career and life setbacks especially in their 40's and 50's with things like deaths, disability, layoffs, job burnout, divorces, and general "li...