Search found 4300 matches

by Peter Foley
Sat May 19, 2018 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: When I retire, what do I sell?
Replies: 7
Views: 1416

Re: When I retire, what do I sell?

articpinapple wrote: Just make sure you have enough in bonds to draw from in the case of a prolonged bear market. This is why for many somewhere between 30-50% in stocks is recommended in retirement. The target date retirement fund with Vanguard has you at around 50% in stocks when you reach the tar...
by Peter Foley
Fri May 18, 2018 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living tax deduction as medical expense
Replies: 19
Views: 1247

Re: Assisted Living tax deduction as medical expense

Bir48die wrote: The only part you can deduct for assisted living is the dedicated nursing part It is actually a little more expansive than that. Quoting from Publication 17, Medical and Dental Expenses: "Medical expenses also include amounts paid for qualified long-term care services . . . . Nursing...
by Peter Foley
Fri May 18, 2018 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: Tax related questions
Replies: 14
Views: 1011

Re: Tax related questions

Regarding RMD's: For most individuals RMD's start at a little over 3.6% and increase a bit every year. For me, that's overly precise and hard to remember so when talking about RMD's I just try to keep in mind that they average about 4% over the first 5 years of retirement. That is close enough for p...
by Peter Foley
Mon May 14, 2018 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Small gift from Grandma to infant - where to put it?
Replies: 21
Views: 1927

Re: Small gift from Grandma to infant - where to put it?

I believe Charles Schwab offers account minimums of $1000.00.
by Peter Foley
Mon May 14, 2018 7:29 pm
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 127
Views: 8741

Re: The front page is ugly

I like the front page as it is.

If you don't like the front page, bookmark the Wiki and start your navigation there. Or, like bertalic use the forum index page and start there.

I think there are good options without any redesign.
by Peter Foley
Fri May 11, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Paying Roth conversion taxes with IRA funds
Replies: 7
Views: 636

Re: Paying Roth conversion taxes with IRA funds

The ideal is to pay for conversions with taxable account. You situation may be such that you can come out ahead paying with pre-tax. In the scenarios I've run on i-orp and the Retiree Portfolio Model, conversions early in retirement make more sense than those close to age 70. At age 60, my guess is ...
by Peter Foley
Thu May 10, 2018 11:00 pm
Forum: Personal Consumer Issues
Topic: Which City to spend 4-6 weeks?
Replies: 47
Views: 4433

Re: Which City to spend 4-6 weeks?

I've lived in Madrid and have spent a fair amount of time in Paris. I admit I know Spain better. I think there are a lot of day trips from Madrid using public transportation. Perhaps fewer significant day trips from Paris? IMHO Paris proper has more going for it than Madrid. Madrid can get quite hot...
by Peter Foley
Thu May 10, 2018 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Gifting ETFs down the road - Advice Requested
Replies: 5
Views: 245

Re: Gifting ETFs down the road - Advice Requested

In the context you mention there is no problem with gifting shares of stocks, mutual funds, ETFs. Just be mindful that the recipient assumes your cost basis.
by Peter Foley
Wed May 09, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Why are stock returns expected to be so low over the next decade?
Replies: 27
Views: 4413

Re: Why are stock returns expected to be so low over the next decade?

Relatively high valuations. See CAPE Ratio, CAPE Median or Robert Shiller as topics.

Also see historical and expected returns on the Wiki.
by Peter Foley
Mon May 07, 2018 7:29 pm
Forum: Personal Consumer Issues
Topic: New car for my wife
Replies: 25
Views: 2624

Re: New car for my wife

Most Subaru models would fit the bill. We live in Minnesota and the Nissan Rogue has served us well for the past 4 years.
by Peter Foley
Mon May 07, 2018 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does it make ANY sense for a US citizen to stash emergency funds overseas?
Replies: 62
Views: 4575

Re: Does it make ANY sense for a US citizen to stash emergency funds overseas?

No. Daftinvestor presented the alternative that came to mind to me. Hold some small denomination gold coins or silver. I wouldn't hold it anywhere except the US, however. If you need emergency assets you would not want to have to travel to get to a foreign country to get them.
by Peter Foley
Sun May 06, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 168
Views: 16787

Re: What Percentage CASH are you?

About 3.5%. 2.5% is in taxable and will be spent this year. Near the end of the year we will move 1% from a TIRA to taxable or Roth to top off the 12% bracket. RMDs are 3 years out. Our withdrawal rate is between 2% and 2.5% per year. We have an additional 4+% in early 21st century I-Bonds. But with...
by Peter Foley
Sat May 05, 2018 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software
Replies: 17
Views: 1123

Re: Tax software

earlyout wrote: Something else to consider in deciding on a conversion is that without a Roth conversion it appears non of your SS will be taxed. If you convert to the top of the 12% bracket 85% of your SS will be taxed, thus increasing the cost of the conversion. This might argue for an every other...
by Peter Foley
Thu May 03, 2018 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: How old is too old for a vehicle, even for a well running one ?
Replies: 83
Views: 4744

Re: How old is too old for a vehicle, even for a well running one ?

I think there are a number of factors. I believe age to be more of an issue in certain climates. Mileage and regular maintenance are more important to me.
by Peter Foley
Wed May 02, 2018 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Windfall advice for an overwhelmed person
Replies: 7
Views: 1395

Re: Windfall advice for an overwhelmed person

Something just doesn't seem right here. You have $225k in capital gains taxes. Is this what created the windfall? The highest long term capital gains rate is 20% and that would just be on amounts over $500,000. What is the relationship between the $1M in pre tax money and the taxes owed? Do you want...
by Peter Foley
Tue May 01, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Max out our 457 or 401k
Replies: 4
Views: 537

Re: Max out our 457 or 401k

If one is planning to retire early, say age 50 - 55, I think having penalty free withdrawals is worth the price of somewhat higher expense ratios. Someone can probably do the math, but with two individuals working you are probably at least in the 22% bracket. With early retirement you would likely b...
by Peter Foley
Mon Apr 30, 2018 11:01 pm
Forum: Personal Consumer Issues
Topic: Bicycle Questions
Replies: 44
Views: 2324

Re: Bicycle Questions

OP asked: Can anyone, briefly, describe the specific ways in which a new $350-450 bike shop bike is likely superior to a $125-150 Wal-Mart bike? Backgound - I've been working in a bike shop since I retired 6 years ago. The shop I work in fixes used bikes to give away to people in need of bikes. I fi...
by Peter Foley
Mon Apr 30, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Would Roth Conversions be worthwhile for me?
Replies: 18
Views: 1583

Re: Would Roth Conversions be worthwhile for me?

A couple of the calculators commonly used are i-orp and the Retiree Model Portfolio. I find the RPM to be a bit better for Roth conversion scenarios.
by Peter Foley
Mon Apr 30, 2018 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 15106

Re: How do you know when you have "won the game"?

When your bond allocation is sufficient to cover 30 years of retirement.
by Peter Foley
Mon Apr 30, 2018 2:56 pm
Forum: Personal Consumer Issues
Topic: Daughter and Girlfriend, age 19, taking cross country road trip. Advice?
Replies: 187
Views: 8422

Re: Daughter and Girlfriend, age 19, taking cross country road trip. Advice?

My English got the better of me with the title of the post. I just had to read it. I understood the OP to mean that his daughter and his 19 year old girlfriend were going to take a cross country trip. Darn those dangling modifiers! Some good advice regarding safety has been offered. As a family we c...
by Peter Foley
Fri Apr 27, 2018 10:41 pm
Forum: Investing - Theory, News & General
Topic: "Tax-Adjusted Asset Allocation: Is It Necessary?"
Replies: 51
Views: 2612

Re: "Tax-Adjusted Asset Allocation: Is It Necessary?"

dbr » Fri Apr 27, 2018 9:05 am Peter Foley wrote: ↑Fri Apr 27, 2018 8:51 am "IMHO doing the calculation once is prudent. Once an investor has an idea as to how much the pre-tax and post tax calculations diverge he/she can judge whether it is something worth monitoring long term. My pre-tax bond all...
by Peter Foley
Fri Apr 27, 2018 7:20 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 14
Views: 1817

Re: Minnesota BH Seasonal Main Meeting 4/28/18

Details regarding the tax law change breakout with moderators Chip T. and Tom R. We will be reviewing key aspects of the tax reform law and how it might impact tax planning for 2018 and beyond. Some questions we will be considering: What are the new tax rates? Will my taxes decrease or increase? Do ...
by Peter Foley
Fri Apr 27, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: "Tax-Adjusted Asset Allocation: Is It Necessary?"
Replies: 51
Views: 2612

Re: "Tax-Adjusted Asset Allocation: Is It Necessary?"

IMHO doing the calculation once is prudent. Once an investor has an idea as to how much the pre-tax and post tax calculations diverge he/she can judge whether it is something worth monitoring long term. My pre-tax bond allocation is about 5% higher than my post tax bond allocation. Some of this is d...
by Peter Foley
Mon Apr 23, 2018 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Edited 4/23 Please help with overall investment plan for retirement
Replies: 8
Views: 1069

Re: Edited 4/23 Please help with overall investment plan for retirement

Watty wrote: With that many funds in the taxable account you likely have some with a loss or minimal gain. I would focus on those first and likely sell them to start building a three fund portfolio. https://www.bogleheads.org/wiki/Three-fund_portfolio One fund does have a high expense ratio. TBGVX (...
by Peter Foley
Mon Apr 23, 2018 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: 2nd opinion on 401k options
Replies: 4
Views: 330

Re: 2nd opinion on 401k options

I admit I have a strong bias for taking risk only on equities. My wife and I have been fortunate to have access to good stable value funds. If the rest of your allocation in reasonably aggressive there is nothing wrong in investing in a fund that just keeps up with inflation. We have been in a low i...
by Peter Foley
Mon Apr 23, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs Tax deferred
Replies: 3
Views: 574

Re: Taxable vs Tax deferred

I think the decision regarding defined benefit plan or taxable hinges in part on the age at which you intend to retire. Will you have some low income years? If yes, tax deferred is likely preferable for at least part of your savings.
by Peter Foley
Mon Apr 23, 2018 7:20 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 14
Views: 1817

Re: Minnesota BH Seasonal Main Meeting 4/28/18

Details provided by moderator of the Cryptocurrency breakout session: What is cryptocurrency and how does it work? As of January 2018, Bitcoin was one of over 1300 cryptocurrencies. Learn about the 5 key components, the virtual 'coin', the digital wallet, the blockchain, the miners, and the network....
by Peter Foley
Sun Apr 22, 2018 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: I am 62 year old with no bonds now. Need advice please.
Replies: 13
Views: 2264

Re: I am 62 year old with no bonds now. Need advice please.

What I think ruralavalon is driving at is that it is not tax efficient to put one's bond allocation in taxable and hold equities in a 401k. A better approach would be to put your bonds in your 401k if the expense ratios are not too high and put a good portion of your $300K in equities in your taxabl...
by Peter Foley
Sun Apr 22, 2018 8:40 am
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 14
Views: 1817

Re: Minnesota BH Seasonal Main Meeting 4/28/18

Additional details from the moderator regarding the Bucket Strategy breakout session: "The Bucket Strategy"/ Overview/Mechanics/Pros and Cons Financial security in retirement is mostly about income. You can have millions in assets, but if you don't have an income system that works, how are you going...
by Peter Foley
Sat Apr 21, 2018 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: Rethinking old CD ladder
Replies: 11
Views: 1506

Re: Rethinking old CD ladder

CD's would not be my investment of choice in a taxable account unless I was approaching retirement or retired. If you need to hold non equities in a taxable account for AA reasons, my first choice would be a tax exempt bond fund. I-bonds would be my second choice. Knowing your age and years to retir...
by Peter Foley
Thu Apr 19, 2018 11:25 am
Forum: Investing - Help with Personal Investments
Topic: Tax-efficient fund placement?
Replies: 9
Views: 1046

Re: Tax-efficient fund placement?

Whacker wrote: The general idea being we should try to save the Roth space for maximum growth, correct? Yes to the question posed above. Putting the taxable into CD's as recommended is fine. Interest rates for short term CD's are nearing the rate of inflation so one is basically maintaining buying p...
by Peter Foley
Wed Apr 18, 2018 5:24 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 14
Views: 1817

Re: Minnesota BH Seasonal Main Meeting 4/28/18

Additional information provided regarding the Roth IRA breakout session: Backdoor Roths / Mega Backdoor Roths: Rules, techniques and opportunities Backdoor Roth contributions of $5,500 per working individual ($6,500 for those over 50 years of age) are still permissible for 2018 under the new tax cod...
by Peter Foley
Mon Apr 16, 2018 8:01 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 14
Views: 1817

Re: Minnesota BH Seasonal Main Meeting 4/28/18

Any insight into how Wade Pfau's How Much Can I Spend in Retirement compares with recent books that have received good reviews?

For example: Living Off Your Money by McClung, and How to Make Your Money Last by Quinn.
by Peter Foley
Mon Apr 16, 2018 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Is capital gains paid at the state level as well?
Replies: 8
Views: 451

Re: Is capital gains paid at the state level as well?

Following up on earlier answers. Obviously some state do not have an income tax. Of those that do there are different starting points, two of the most common being Federal Adjusted Gross Income or Federal Taxable income. After those starting points states then apply their own rules.
by Peter Foley
Sun Apr 15, 2018 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax When Very Little Income
Replies: 7
Views: 1019

Re: Capital Gains Tax When Very Little Income

Yes you are understanding it correctly. There is a concept called tax gain harvesting, taking capital gains when one's income is low, to avoid potential long term capital gains when one's income is higher.
by Peter Foley
Sun Apr 15, 2018 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Investing for a 1 year old
Replies: 9
Views: 1145

Re: Investing for a 1 year old

We invested for our kids using custodial accounts and EE bonds when they were very little (some 30 years ago). Then 10-15 years later the IRS changed the rules on the reporting of children's income, taxing it at the parent's level. Tough to plan so far in advance. Based on where we are today I would...
by Peter Foley
Sat Apr 14, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Need some IRA advice please
Replies: 8
Views: 665

Re: Need some IRA advice please

Regarding RMD's. During the first 5 years you are required to take out an average of about 4% per year. It starts out a little less than that, but for planning purposes 4% is a good starting point.
by Peter Foley
Fri Apr 13, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4187

Re: Retirement Plan Review please

kjsammy wrote: Can you tell me more about not converting everything and using an IRA instead of a Roth as a savings account? Since I will have pension and Social Security and RMD's wouldn't I be better off using a Roth as a saving account in advanced age or medical necessity? Conversion in your situ...
by Peter Foley
Fri Apr 13, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4187

Re: Retirement Plan Review please

My overall assessment is that you are in very good shape financially. Just a couple points that have not been mentioned. I would not hold a TIPs fund in a Roth. While you don't have a large holding it would be better to have such a fund in an IRA or 401k. Amid all the talk about Roth conversions I h...
by Peter Foley
Thu Apr 12, 2018 7:46 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 14
Views: 1817

Re: Minnesota BH Seasonal Main Meeting 4/28/18

The 2018 tax law changes breakout session is intended to provide a brief overview of the changes and solicit questions and strategies regarding how one might modify current practices in light of the change. The two moderators are really looking for input from attendees. A basic question is now that ...
by Peter Foley
Wed Apr 11, 2018 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: Tax emergency--Almost done filing with TurboTax but a couple things are wrong
Replies: 13
Views: 932

Re: Tax emergency--Almost done filing with TurboTax but a couple things are wrong

i'm not familiar with the on line version, but the CD version has a forms view option. You can click on that and view the forms you are going to file. With the CD version you can also save a pdf and look at the forms that way.
by Peter Foley
Wed Apr 11, 2018 8:38 pm
Forum: Personal Consumer Issues
Topic: Spain in May end
Replies: 32
Views: 1867

Re: Spain in May end

rocco wrote: I'd do a day in Madrid to see the Prado and Reina Sofia museums. Take a guided tour of the Prado, where for a bargain price you will learn so much more about Spain and its art. The bullet train runs from Madrid to Cordoba to Seville and takes a couple of hours to get from Madrid to Sevi...
by Peter Foley
Mon Apr 09, 2018 10:56 pm
Forum: Local Chapters and Bogleheads Community
Topic: Improving Local Boglehead Chapter Meetings
Replies: 19
Views: 2069

Re: Improving Local Boglehead Chapter Meetings

Retiredmarine: Some answers to your questions. The MN group has met quarterly for the last 6 to 8 years. Just this year the steering committee decided to go to 3 time per year. It is a lot of work to organize a meeting for this many people, and the size of the group has grown to a point that we have...
by Peter Foley
Mon Apr 09, 2018 2:58 pm
Forum: Local Chapters and Bogleheads Community
Topic: Improving Local Boglehead Chapter Meetings
Replies: 19
Views: 2069

Re: Improving Local Boglehead Chapter Meetings

I've been going to local MN BH meetings for almost 10 years. When I first started we met in restaurants for lunch. There were no plenary sessions, just a few small group discussions. Attendance was in the 20's to the low 30's. Attendance grew when we switched to library locations and started using a...
by Peter Foley
Mon Apr 09, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Easily digestible info/blog on finances for spouse?
Replies: 35
Views: 2519

Re: Easily digestible info/blog on finances for spouse?

If she has any interest in current issues, Michael Kitces.
by Peter Foley
Mon Apr 09, 2018 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Recordkeeping system for retirees
Replies: 25
Views: 2709

Re: Recordkeeping system for retirees

I don't trust the web. I keep electronic copies of critical files on CD. I also have a back up hard drive that I do not keep connected to my computer except when I am backing up files or retrieving files.
by Peter Foley
Mon Apr 09, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Questions on inherited IRA/401k
Replies: 8
Views: 664

Re: Questions on inherited IRA/401k

One can do qualified charitable distributions from an IRA but not from a 401k. I honestly don't know if that applies to an inherited IRA. I also don't know if it is relevant to your situation.

Some 401k's have very good stable value funds. Those can be good alternatives to bonds.
by Peter Foley
Sat Apr 07, 2018 10:47 pm
Forum: Personal Consumer Issues
Topic: Is it very hard to learn Spanish?
Replies: 65
Views: 4292

Re: Is it very hard to learn Spanish?

cfs wrote:
Good luck y gracias por leer
Me parece que a usted le gusta la poesía de Antonio Machado. Usted también se hace el camino al andar?
by Peter Foley
Sat Apr 07, 2018 11:03 am
Forum: Personal Consumer Issues
Topic: Is it very hard to learn Spanish?
Replies: 65
Views: 4292

Re: Is it very hard to learn Spanish?

I don't want to be disrespectful of others who have posted their opinions on this topic, but many things stated in this thread are just that opinions, not facts. I will quote a couple of the better, and based on my academic experience, more factual responses. Rocco wrote: Although Spanish is conside...
by Peter Foley
Sat Apr 07, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: Why 401k options are limited?
Replies: 10
Views: 841

Re: Why 401k options are limited?

There is another reason. Some employers are not very savvy about personal finance and investing. They may get a proposal from a salesperson to set up a 401k and go for it. A sales pitch can be that it is easy for the employer to administer and not cost the employer much, if anything, to set it up. I...