Search found 4830 matches

by Peter Foley
Sat Apr 20, 2019 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversions, taxes, and social security
Replies: 21
Views: 2207

Re: Roth conversions, taxes, and social security

Celia wrote: OP, My suggestions are: * Stop contributing anything else to tax-deferred, except only enough to get the employer's match (free money). * Start converting. At least convert a small amount for each of you this year to start the 5-year clock. Continue converting each year to at least the ...
by Peter Foley
Wed Apr 17, 2019 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1840

Re: Estate Planning for Mother in Law

OP wrote: I would like to know the tax considerations. We are comfortable financially. It would be better for us to receive a step up in basis on the taxable account and take RMDs on the inherited IRAs. This is likely an issue with a lot of estates with multiple heirs. What works well for one heir m...
by Peter Foley
Mon Apr 15, 2019 10:38 pm
Forum: Personal Investments
Topic: Converting to BH philosophies...suggestions?
Replies: 10
Views: 1117

Re: Converting to BH philosophies...suggestions?

Welcome to the forum. Your have provided a good overall picture and your proposal is heading in the right direction. A couple relatively minor things jump out at me. 1. Why not hold you bond allocation entirely in tax deferred. You have room in your 401k to do so. That would allow you to hold equity...
by Peter Foley
Mon Apr 15, 2019 11:27 am
Forum: Personal Investments
Topic: Where to hold 2-3 years of living expenses
Replies: 28
Views: 4857

Re: Where to hold 2-3 years of living expenses

We use Ally bank and brokerage money market funds that pay close to the rate of inflation. We want to avoid anything where the value might fluctuate or where buying power is lost.
by Peter Foley
Mon Apr 15, 2019 11:21 am
Forum: Personal Consumer Issues
Topic: Where To Get New Bikes
Replies: 64
Views: 3820

Re: Where To Get New Bikes

Just a heads up for those considering a purchase from Craigslist. The following is a brief description of part of the quality control routine we use when fixing bikes for giveaway. While not a guaranty, it might save you an expensive bike shop repair. Obviously look the bike over for bent frame comp...
by Peter Foley
Sun Apr 14, 2019 10:00 pm
Forum: Personal Consumer Issues
Topic: Where To Get New Bikes
Replies: 64
Views: 3820

Re: Where To Get New Bikes

Since retiring from my regular job 7 years ago I have worked in a bike shop and for a organization that fixes bikes to be given to kids. I work on a wide range of makes and models. Local bike shop bikes are just made better. Better components, smoother shifting, easier to repair. I would stay away f...
by Peter Foley
Sun Apr 14, 2019 7:30 pm
Forum: Personal Investments
Topic: Different investment strategies
Replies: 11
Views: 840

Re: Different investment strategies

Larry Swedroe's and Kevin Grogan's recent book, Your COMPLETE Guide to a Successful & Secure Retirement, Chapters 6 and 7, Implementing the Investment Plan and Reducing Risk would also be recommended reads prior to moving beyond a basic plan such as the one you already have.
by Peter Foley
Sat Apr 13, 2019 10:00 pm
Forum: Personal Investments
Topic: Increasing Risk in Retirement
Replies: 26
Views: 2126

Re: Increasing Risk in Retirement

Yes. This approach has been studied. It is called a "rising equity glide path." Wade Pfau is one of the authors of the study.

The theory is to slightly minimize risk near retirement and in early retirement to avoid a bad sequence of returns.
by Peter Foley
Sat Apr 13, 2019 7:30 pm
Forum: Personal Investments
Topic: Confused regarding which year RMD is being taken, 2018 or 2019?
Replies: 5
Views: 558

Re: Confused regarding which year RMD is being taken, 2018 or 2019?

Look closely at that 1099-R. Is it a normal distribution or a transfer? A transfer from one IRA to another is not a taxable event. That would not be any help with respect to the RMD.
by Peter Foley
Sat Apr 13, 2019 7:25 pm
Forum: Investing - Theory, News & General
Topic: Questions about SS benefit calculations
Replies: 5
Views: 533

Re: Questions about SS benefit calculations

A follow up to questions not asked. Waiting to 70 is not the best approach for everyone, especially for couples.

You might want to check out Mike Piper's open social security calculator and see if you get different advice as to when to file.

https://opensocialsecurity.com/
by Peter Foley
Sat Apr 13, 2019 7:07 pm
Forum: US Chapters
Topic: Minnesota BH Main Meeting 4/20/19
Replies: 5
Views: 599

Re: Minnesota BH Main Meeting 4/20/19

We are a week out from our spring meeting at the Ridgedale Library. 9:30 to 11:30 am.

If you are not on our group mail list and want a final agenda, contact the mail list and ask to have your name added. An e-mail with a pdf of the agenda will be sent out mid week next week.
by Peter Foley
Sat Apr 13, 2019 3:05 pm
Forum: Personal Investments
Topic: Different investment strategies
Replies: 11
Views: 840

Re: Different investment strategies

Common additions to total stock, total international and total bond are REITS and small cap value. (I don't own either.)
by Peter Foley
Sat Apr 13, 2019 12:46 pm
Forum: Personal Investments
Topic: ORP says I should stop all pre-tax contribs
Replies: 75
Views: 5858

Re: ORP says I should stop all pre-tax contribs

anwestsaying said: Would appreciate a reference site for this,I don’t know what i-ORP is,but I have to figure out whether to do any more Roth conversions.As single person,I got one in last year before turning 70,it was first retirement year,so had only FERS annuity of $20k,no SS,$25k other income,so...
by Peter Foley
Fri Apr 12, 2019 10:58 pm
Forum: Personal Investments
Topic: ORP says I should stop all pre-tax contribs
Replies: 75
Views: 5858

Re: ORP says I should stop all pre-tax contribs

livesoft wrote: Make sure you use the same expected annual growth in all your investment accounts. Otherwise i-ORP always says to put the most money in the highest growth account if you can. It also says to withdraw first from the lowest growth account. I don't have any reason to doubt that this is ...
by Peter Foley
Thu Apr 11, 2019 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Estimated Taxes in Retirement
Replies: 24
Views: 1504

Re: Paying Estimated Taxes in Retirement

Not mentioned in this conversation/thread is the fact that the OP will have earned income this year. An option might be to make a contribution to an IRA for 2019 if enough hasn't been withheld.

I created my own tax estimator with Excel using Turbo Tax's 2 year summary as a basis.
by Peter Foley
Sun Apr 07, 2019 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Standard Deduction vs Itemizing - Experience this year
Replies: 52
Views: 5155

Re: Standard Deduction vs Itemizing - Experience this year

Some of us are fortunate enough to do tax planning for ourselves, our children, and our grandchildren. The change in the tax law that allows for broader use of 529 plans allow us to gift to a 529 plan for grandchildren w/o exceeding gift reporting thresholds for our children. Under certain circumsta...
by Peter Foley
Sun Apr 07, 2019 7:29 pm
Forum: US Chapters
Topic: Minnesota BH Main Meeting 4/20/19
Replies: 5
Views: 599

Re: Minnesota BH Main Meeting 4/20/19

A reminder that we are trying to go paperless and will not be bringing paper agendas to the meeting.

If you are on our e-mail list you will receive an e-mail from the steering committee with a pdf of the agenda a few days before the meeting.

Our group email is mnbogleheads@gmail.com
by Peter Foley
Sun Apr 07, 2019 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversions, taxes, and social security
Replies: 21
Views: 2207

Re: Roth conversions, taxes, and social security

Golf maniac wrote: Second, when you or spouse turn 65 and if you go with Medicare Part B they look at your income from a few years back to determine you part B cost. If you can get a big chunk done before 63 then do it to avoid a very high Part B cost. I agree. Also conversions in early years of ret...
by Peter Foley
Sat Apr 06, 2019 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: Standard Deduction vs Itemizing - Experience this year
Replies: 52
Views: 5155

Re: Standard Deduction vs Itemizing - Experience this year

This year was the first time in 40 years that I have not itemized. While we have not had a mortgage for a long time, state income taxes, property taxes and charitable contributions always exceeded the standard deduction. With the SALT limit, we did not come close. Under current tax law, bunching cha...
by Peter Foley
Sat Apr 06, 2019 7:10 pm
Forum: US Chapters
Topic: Minnesota BH Main Meeting 4/20/19
Replies: 5
Views: 599

Re: Minnesota BH Main Meeting 4/20/19

A little detail about the format of this meeting. There will be a presentation by our founder Jeff M. followed by an attendee's choice of one of six breakout sessions. Three of the small groups will have presentations regarding specific topics: Estate planning, Donor advised funds, and Real Estate a...
by Peter Foley
Fri Apr 05, 2019 9:54 pm
Forum: Personal Investments
Topic: Got rid of Advisor, trying to rebalance portfolio
Replies: 5
Views: 765

Re: Got rid of Advisor, trying to rebalance portfolio

A "stable value" fund is not entirely unlike a money market fund. It is a fund that invests in a variety of bonds and usually some insurance products. Most have a goal of maintaining a constant value of $1.00 per share while paying more interest that one can get in a money market fund or short term ...
by Peter Foley
Fri Apr 05, 2019 5:27 pm
Forum: Personal Investments
Topic: Got rid of Advisor, trying to rebalance portfolio
Replies: 5
Views: 765

Re: Got rid of Advisor, trying to rebalance portfolio

Again welcome. The basic approach you proposed is good. ExitStageLeft provides excellent additional insight. With the thought that there are many roads to Dublin, you may want to also consider the following: Does one of your employer sponsored plans have a good stable value fund? That may be an opti...
by Peter Foley
Thu Apr 04, 2019 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: tax planning for Large future savings bonds lump sum
Replies: 9
Views: 919

Re: tax planning for Large future savings bonds lump sum

I'm not in favor of paying taxes early either. However, in your case, cashing in an EE bond and investing the proceeds in CDs or municipal bonds or municipal bond funds might make sense prior to taking SS benefits. I wouldn't do anything now, but at some point in time prevailing interest rates might...
by Peter Foley
Tue Apr 02, 2019 7:37 pm
Forum: Personal Consumer Issues
Topic: Second Favorite Financial Forums
Replies: 8
Views: 1451

Re: Second Favorite Financial Forums

Not exactly forums, but I follow Mike Piper, Darrow Kirkpatrick, and Michael Kitces. Topics they discuss are often mentioned and referenced here.
by Peter Foley
Tue Apr 02, 2019 7:30 pm
Forum: Personal Investments
Topic: Roth IRA or TSP Withdrawal to Pay Off Mortgage Before Purchasing New House
Replies: 5
Views: 327

Re: Roth IRA or TSP Withdrawal to Pay Off Mortgage Before Purchasing New House

I do not have knowledge of TSP rules. With some retirement accounts you can take out a loan at reasonable rates. We did so with my wife's 403b account as an emergency back up when we made a cash offer on a house. My inclination would be to do a short term loan. With your Roth assets, that should not...
by Peter Foley
Tue Apr 02, 2019 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Include annual MF distributions in calculating SWR?
Replies: 21
Views: 703

Re: Include annual MF distributions in calculating SWR?

livesoft wrote: Right now, all your distributions in your taxable account are taxed anyways. It doesn't matter if you spend them on your mortgage, food, vacations, or buying more shares (that is, reinvest them). The EXACT same thing happens in retirement. This is not necessarily true. If you have no...
by Peter Foley
Mon Mar 25, 2019 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance of Trad IRA
Replies: 40
Views: 1876

Re: Inheritance of Trad IRA

We often talk about RMDs in these threads without parsing out the words in the acronym: required minimum distributions. They are just that "minimums." No reason not to set it up as an inherited IRA and then take $5k to 10K per year as needed. You might want to take it out over a 5 to 10 year period ...
by Peter Foley
Mon Mar 25, 2019 10:38 pm
Forum: Personal Investments
Topic: Roth contributions into retirement
Replies: 5
Views: 628

Re: Roth contributions into retirement

If this is going to be a low income year (no big bonus payout when you leave - darn) I would contribute to the Roth but would not contribute to the TIRA. You will need funds in taxable for the bridge you are planning.
by Peter Foley
Sat Mar 23, 2019 6:43 pm
Forum: Personal Investments
Topic: Where can I find historical distribution info?
Replies: 7
Views: 450

Re: Where can I find historical distribution info?

I put in the following parameters in Yahoo finance and all the data showed up:
Time Period: Mar 23, 2009 - Mar 23, 2019 Show: Historical Prices Frequency: Monthly
by Peter Foley
Sat Mar 23, 2019 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Adivce - RMD and Taxes
Replies: 5
Views: 573

Re: Adivce - RMD and Taxes

The starting point is to get a good idea of what your adjusted gross income and taxable income will be. If your taxable income is below $77,4000 either withdrawing from your IRA or converting some of the IRA to a Roth are easy, viable options. While taxation of SS benefits can also be an issue. I'm ...
by Peter Foley
Sat Mar 23, 2019 9:34 am
Forum: US Chapters
Topic: Minnesota Main Meeting-Save the Date: April 20, 2019
Replies: 2
Views: 312

Re: Minnesota Main Meeting-Save the Date: April 20, 2019

April Meeting Agenda 9:30 Introduction - Welcome, opening remarks, splinter group updates 9:40 Speaker – Jeff – A path to early retirement. 99 problems and bitcoin ain’t one. 30 years of mistakes and lessons learned. Jeff will review all of his financial stages, which thankfully ended up in the Bogl...
by Peter Foley
Fri Mar 22, 2019 10:31 pm
Forum: US Chapters
Topic: Minnesota Main Meeting-Save the Date: April 20, 2019
Replies: 2
Views: 312

Re: Minnesota Main Meeting-Save the Date: April 20, 2019

More information about the meeting will be available tomorrow (Saturday, March 23) .
by Peter Foley
Fri Mar 22, 2019 11:17 am
Forum: Personal Investments
Topic: Wondering if I did it all wrong by putting bonds in the Roth IRA
Replies: 9
Views: 1190

Re: Wondering if I did it all wrong by putting bonds in the Roth IRA

I view "tax efficient fund placement" as a hierarchy, not an absolute. It is a balance of two objectives - keeping current taxes low while one is working and maximizing growth for retirement spending. So my priorities in order would be to: 1. Put one's bond allocation in tax deferred to the extent p...
by Peter Foley
Thu Mar 21, 2019 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax 2018 - Who must file
Replies: 22
Views: 2231

Re: Kiddie Tax 2018 - Who must file

From the journal of accountancy: https://www.journalofaccountancy.com/issues/2018/nov/irs-new-kiddie-tax.html ONE CONVENIENCE LOST Unfortunately, an administrative convenience in the old kiddie tax did not find its way into the new rules. Under the old law, parents could elect to report a child's un...
by Peter Foley
Thu Mar 21, 2019 11:18 am
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax 2018 - Who must file
Replies: 22
Views: 2231

Re: Kiddie Tax 2018 - Who must file

I'm reviving this post with the hopes that some of you may now have filed 2018 taxes and have more insight. Two main conclusions regarding unearned income and the kiddie tax: 1. If the unearned income exceeds the threshold (gross income $1050), estate tax rates apply to the income. 2. You must file ...
by Peter Foley
Mon Mar 18, 2019 1:20 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 6
Views: 844

Re: Portfolio Review

As mentioned by others I would favor a little simplification and a bond allocation minimum of 20% to 25%. If you are in the 35% tax bracket I would at least explore the option of using a 401k solo rather than a SIMPLE. That would allow you to defer more income. If you are thinking of retiring early,...
by Peter Foley
Sat Mar 16, 2019 10:33 am
Forum: Personal Investments
Topic: retirement planning
Replies: 7
Views: 1334

Re: retirement planning

Again welcome to the forum. I'm going to offer a contrarian point of view regarding the CD. I don't think $250K in a 3% CD is unreasonable when one considers your total portfolio. Given where we are in the long term interest rate cycle, I too would want something to counterbalance total bond fund. A...
by Peter Foley
Fri Mar 15, 2019 3:02 pm
Forum: Personal Investments
Topic: Roth rollovers post retirement - or not?
Replies: 16
Views: 1384

Re: Roth rollovers post retirement - or not?

The IRMAA number have been the same for 2016-2017-2018. I do not know if they are automatically indexed or not. Edit: A quick check with Michael Kitces's Bird's Eye view came up with the following: The annual MAGI thresholds for IRMAA Medicare Premium surcharges are adjusted annually for inflation, ...
by Peter Foley
Fri Mar 15, 2019 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Another Can I Retire Question
Replies: 27
Views: 2588

Re: Another Can I Retire Question

If you were to retire from your current job, what would really be helpful would be for both you and your wife to have some employment In Mississippi. The motivation would be additional quarters of social security contributions for both of you.
by Peter Foley
Thu Mar 14, 2019 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Retiring- pension is 2x annual expense. Roth conversions/ss advice.
Replies: 39
Views: 4252

Re: Retiring- pension is 2x annual expense. Roth conversions/ss advice.

Both of them waiting to age 70 for SS Benefits is probably not the best approach. Have them use Mike Piper's calculator to determine the best approach: https://opensocialsecurity.com/ My best guess is that the one with the lower benefit should file at full retirement age. It may be possible for the ...
by Peter Foley
Wed Mar 13, 2019 10:44 pm
Forum: Personal Investments
Topic: Roth rollovers post retirement - or not?
Replies: 16
Views: 1384

Re: Roth rollovers post retirement - or not?

As Big John states there are a lot of unknowns - based in part on the fact that there are a lot of variables. There is a kinda "do no harm" approach along the lines of what Alan suggests. At your projected income levels a good target might be to convert to a MAGI that would keep you below the increa...
by Peter Foley
Sun Mar 10, 2019 7:55 pm
Forum: Personal Investments
Topic: Help with my Asset Allocation (and 10 year update)
Replies: 5
Views: 499

Re: Help with my Asset Allocation (and 10 year update)

If you continue to have a SEP -IRA and a Roth, you can likely make any adjustments tax free. I don't have any objections to your portfolio, I would just emphasize that you place your bond allocation in your tax deferred account and keep your Roth in stocks. You seem to be heading away from target re...
by Peter Foley
Wed Mar 06, 2019 1:36 pm
Forum: Investing - Theory, News & General
Topic: What do you tell people who ask for retirement/investment advice?
Replies: 71
Views: 5257

Re: What do you tell people who ask for retirement/investment advice?

Odd coincidence - I raised this question at a recent local Bogleheads meeting on March 2nd. There were about 15 people present at this east Twin Cities (St. Paul suburb) session. I documented 23 separate items ranging from broad advice to very specific advice. My takeaway was that you have to first ...
by Peter Foley
Wed Mar 06, 2019 12:25 pm
Forum: Investing - Theory, News & General
Topic: Larry's new book The Complete Guide to a Successful & Secure Retirement
Replies: 22
Views: 6209

Re: Larry's new book The Complete Guide to a Successful & Secure Retirement

I'm in the process of reading the book and want to give this thread a bump. While Larry has written about this topic before, I found his chapter on asset allocation and risk (Chapter 3) to be especially insightful. New to me was his fairly detailed interjection of "labor capital" into the ability to...
by Peter Foley
Wed Mar 06, 2019 12:16 pm
Forum: Personal Investments
Topic: Your thoughts on pulling the money out
Replies: 4
Views: 883

Re: Your thoughts on pulling the money out

It is likely that some modest Roth conversions might be the best approach. I would suggest running a couple scenarios using the Retiree Portfolio Model. My thoughts are along the same line as bloom2708 - doing Roth conversions and a bit of taxable gain harvesting to a level where your long term capi...
by Peter Foley
Wed Mar 06, 2019 12:12 am
Forum: Personal Consumer Issues
Topic: Has any retiree taken classes at 4-year college - for interest - e.g. Spanish
Replies: 108
Views: 5794

Re: Has any retiree taken classes at 4-year college - for interest - e.g. Spanish

I will offer another opinion albeit from a slightly different perspective. I was not going to chime in until I read the comment about courses being all over the map. Indeed they are. I have a Ph.D. in Hispanic Linguistics and taught Spanish at the college level for over 8 years before moving on to a...
by Peter Foley
Tue Mar 05, 2019 4:02 pm
Forum: Investing - Theory, News & General
Topic: Pushing the frontier of behavioral finance
Replies: 38
Views: 3472

Re: Pushing the frontier of behavioral finance

Just a couple answers. What makes you a Boglehead? I kinda got there by myself. A friend of mine did an analysis of his portfolio around 2003-2005. He concluded that his best performing long term investment was a S&P 500 fund in his retirement account. That inspired me to look back and I discovered ...
by Peter Foley
Mon Mar 04, 2019 5:23 pm
Forum: Personal Investments
Topic: How to rebalance
Replies: 7
Views: 873

Re: How to rebalance

carmonkie wrote: Do you have bond funds in your 401(k), you most likely do? If you do, right now might be a good time and move all your bond allocation to your 401(k). You want funds that are expected to appreciate in value in Roth since those will grow tax free and Bond funds in 401(k) since those ...
by Peter Foley
Sat Mar 02, 2019 11:29 pm
Forum: Personal Investments
Topic: New to the site, wish i found it sooner
Replies: 26
Views: 1666

Re: New to the site, wish i found it sooner

If you post your portfolio (percentages, not dollars) readers will chime in a offer suggestions.