Search found 3753 matches

by Peter Foley
Sun Mar 26, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz's Three Bucket System
Replies: 24
Views: 1665

Re: Christine Benz's Three Bucket System

My take at first glance: While I don't disagree with her bucket approach, she holds too many funds for my taste. I share her preference for 2 years of cash. I don't know her rationale for holding a balanced fund in bucket 2 nor a bond fund in bucket 3. Bucket 2 could be total bond + TIPS. Bucket 3 c...
by Peter Foley
Sat Mar 25, 2017 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Liabilities
Replies: 8
Views: 590

Re: Estate Tax Liabilities

staythecourse: Many states have estate taxes with some having different thresholds than the Feds. Minnesota, for example, is at $1.8 M this year and set to go to $2.0 M next year. Also, about a half dozen states have inheritance taxes. There is a list on the Wiki: https://www.bogleheads.org/wiki/Est...
by Peter Foley
Sat Mar 25, 2017 12:38 pm
Forum: Investing - Theory, News & General
Topic: "Designing Your "Glide Path"
Replies: 22
Views: 2132

Re: "Designing Your "Glide Path"

As to the White Coat Investor's article. . . IMHO, very well done. Dr. Dahle lays out the options and explains the rationale. He even considered debt reduction as part of the formula, a nice addition to this oft debated topic. He provides a short, but relatively thorough analysis. Well worth clickin...
by Peter Foley
Sat Mar 25, 2017 12:22 pm
Forum: Investing - Theory, News & General
Topic: "Designing Your "Glide Path"
Replies: 22
Views: 2132

Re: "Designing Your "Glide Path"

Taylor wrote: Consider an appropriate target fund -- then forget about it This is certainly a valid approach for some individuals. I would caution however, that different mutual fund companies handle their glide paths differently. I would suggest comparing Vanguard to Fidelity to get a feel for the ...
by Peter Foley
Sat Mar 25, 2017 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Liabilities
Replies: 8
Views: 590

Re: Estate Tax Liabilities

You are probably dealing with the wrong lawyer. You want one who specializes in estates. From the information you have provided us: Trust index funds = $500,000 Variable annuity = $155,000 (possibly part of the inheritance, but maybe it terminates upon his death) IRA = $90,000 Life insurance? Real e...
by Peter Foley
Fri Mar 24, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Follow up: What is RMD for wife (61) after death of husband (72)
Replies: 7
Views: 938

Re: Follow up: What is RMD for wife (61) after death of husband (72)

petesamprs wrote: You bring up a very good point about Health insurance that I completely forgot about. She currently pays almost $700/month for a Platinum insurance plan from ACA marketplace, with no incentives/rebates given their joint income last year. I should look to minimize her income to ensu...
by Peter Foley
Fri Mar 24, 2017 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Help with Retirement Planning
Replies: 3
Views: 276

Re: Help with Retirement Planning

Again welcome. You proposed: Roth IRA - $30k → Fill with Total Stock Market (VTSAX) Roth 401k - $35k → Fill with Total Stock Market (VTSAX) Pre-tax 401k - $320k → Put the entire Bond Index funds allocation ($250k) here. Total Bond Market and Total International Bond Market. (VTABX and VBTLX). Whatev...
by Peter Foley
Fri Mar 24, 2017 10:04 am
Forum: Investing - Theory, News & General
Topic: Vanguard Target Date Funds
Replies: 16
Views: 2517

Re: Vanguard Target Date Funds

I agree as well. I think it takes some of the emotion out of investing.

The only downside is you might have less to talk about at cocktail parties. (Are there still cocktail parties?) :wink:
by Peter Foley
Fri Mar 24, 2017 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Contributions to Simple IRA affecting taxes
Replies: 7
Views: 366

Re: Contributions to Simple IRA affecting taxes

Keep in mind that you can also do a spousal IRA if your wife has not already used her tax deferred space.
by Peter Foley
Fri Mar 24, 2017 9:50 am
Forum: Investing - Theory, News & General
Topic: New Investor mutual Fund Question
Replies: 5
Views: 248

Re: New Investor mutual Fund Question

Just to emphasize Anotherguy's response. ETF's and stocks move up and down when the market is open. Mutual funds consolidate all those pluses and minuses in the stocks (or bonds) they hold and then recalculate the funds value a few hours after the market is closed. Because Target Date funds hold a m...
by Peter Foley
Thu Mar 23, 2017 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: How did you do your income taxes?
Replies: 96
Views: 3466

Re: How did you do your income taxes?

Turbo Tax Deluxe + state for $39.89 + tax at Staples. It was on sale with a coupon. Actual cost was $20 more as I paid for electronic filing of state. In addition to my own taxes I did taxes for my two married daughters using the same software. Additional costs to file state electronically, $20 each.
by Peter Foley
Thu Mar 23, 2017 10:51 pm
Forum: Investing - Theory, News & General
Topic: "Rising Equity Glide Path" ?
Replies: 40
Views: 5865

Re: "Rising Equity Glide Path" ?

Glide paths are an interesting and controversial topic. Major investment firms with their Target Retirement funds do not share the same glide path. I have opined about this in other threads, but Dr. Pfau's "Rising Equity Glide Path," at its most basic, is a reasonable approach for some inv...
by Peter Foley
Tue Mar 21, 2017 12:33 pm
Forum: Investing - Theory, News & General
Topic: What's your strategy for withdrawing funds in Retirement ?
Replies: 45
Views: 4155

Re: What's your strategy for withdrawing funds in Retirement ?

Strategies can be quite varied because individual circumstances vary. Is the bulk of your retirement savings in taxable, tax deferred, or Roth? Do you plan on delaying SS benefits and withdrawing a little more early on and a little less later? There are lots of questions and lots of circumstances. Y...
by Peter Foley
Tue Mar 21, 2017 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Inlaw Suddenly Wants Financial Security in 60's..
Replies: 27
Views: 4048

Re: Inlaw Suddenly Wants Financial Security in 60's..

To be a bit contrarian, there are people who should use an adviser. Perhaps not a lot, but there are some people who just cannot handle the emotional aspect of investing. In this particular case, I would recommend that the individual visit a local Charles Schwab office and express up front that they...
by Peter Foley
Mon Mar 20, 2017 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan: Do it myself or use Advisor?
Replies: 41
Views: 2979

Re: Retirement Plan: Do it myself or use Advisor?

Dinosaur Dad While I am a pretty committed do-it-yourselfer, a couple years prior to retirement my wife and I hired an adviser to do a one time plan. I was certainly concerned with the "you don't know what you don't know" prospect and, in addition I wanted to encourage my wife to be more i...
by Peter Foley
Mon Mar 20, 2017 11:03 pm
Forum: Investing - Theory, News & General
Topic: DALBAR report methodological flaws - Prof. Pfau
Replies: 29
Views: 2335

Re: DALBAR report methodological flaws - Prof. Pfau

See link above to the Emotional Investor: To summarize, Jay Mooreland wrote: The reader will notice that by making commonsense adjustments, the difference between the average investor return and index return is not as great as Dalbar reports, but is still significant. and Average Equity Fund Investo...
by Peter Foley
Mon Mar 20, 2017 7:18 pm
Forum: Investing - Help with Personal Investments
Topic: Utah Vs. New York 529 - Which one and why?
Replies: 18
Views: 880

Re: Utah Vs. New York 529 - Which one and why?

I did the research about 4 years ago and settled on New York for our grandchildren. If I recall correctly, I believe I liked their investment options better. Both were highly recommended at the time.
by Peter Foley
Mon Mar 20, 2017 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Paying $20 to E-File State Return
Replies: 75
Views: 10791

Re: Paying $20 to E-File State Return

I have a fairly complicated return with some self employment and rental property. I have to print out a lot of forms to file a state return on paper. Getting the whole thing together and getting it weighed to mail takes time. My time is worth something. I'm also a former state employee and as part o...
by Peter Foley
Sun Mar 19, 2017 9:57 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion and Strategy
Replies: 13
Views: 1001

Re: Roth Conversion and Strategy

As previously mentioned, I don't think there is an ideal percentage. A good guideline would be to try to stay in the 15% tax bracket or lower throughout one's retirement.

I like to think in terms of a constant level of spendable income (income after taxes).
by Peter Foley
Sun Mar 19, 2017 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: How to Save a Chart?
Replies: 9
Views: 563

Re: How to Save a Chart?

If you are using windows, just use the snip it feature and copy and paste it into a word doc.
by Peter Foley
Sun Mar 19, 2017 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Failing to understand taxable acct strat
Replies: 16
Views: 1751

Re: Failing to understand taxable acct strat

I hold only total stock market in a taxable brokerage account and balance out my AA elsewhere. There are many who post here who advise holding total international as well. If I were starting over, I would do either total US or a combination of the two.
by Peter Foley
Sun Mar 19, 2017 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing for the first time ever with bad 401(k) options
Replies: 7
Views: 453

Re: Rebalancing for the first time ever with bad 401(k) options

Potential silver lining: High fees are bad, especially over the long term. They are like negative compound interest. One would hope that you will have lower cost options in the future. Once again Dukie has done a good job of laying things out. I think most here would be inclined to rebalance less fr...
by Peter Foley
Sun Mar 19, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Personal finance planning
Replies: 13
Views: 1097

Re: Personal finance planning

I don't have specific advice about investing, but would direct you to the following short Vanguard article regarding portfolio asset allocation: https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-risk My reason for doing so is that you have both a long term goal, retirem...
by Peter Foley
Sat Mar 18, 2017 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: 457(b) Enhanced limit
Replies: 5
Views: 302

Re: 457(b) Enhanced limit

"457(b) plans also allow those within three years of the plan’s normal retirement age (55), to contribute an additional amount of up to the lesser of twice the applicable limit or unused amounts from prior years. Employees are eligible for the greater of the enhanced limit or the age 50 catch-...
by Peter Foley
Sat Mar 18, 2017 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice on an inheritance.
Replies: 15
Views: 1269

Re: Need advice on an inheritance.

This might not be as bad as you think if I am understanding the numbers correctly. Note that the $75,900 amount is the top of the 15% bracket for taxable income. With a standard deduction and two exemptions you are looking at about $96,700 in adjusted gross income. It is unclear as to whether you we...
by Peter Foley
Sat Mar 18, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: DALBAR report methodological flaws - Prof. Pfau
Replies: 29
Views: 2335

Re: DALBAR report methodological flaws - Prof. Pfau

We had a fee only financial planner talk about investment principles and investment returns at one of our MN Bogleheads meeting. I was surprised at some of the numbers he used with regard to investors' returns versus "investment returns." As it turned out, a good portion of the talk was ba...
by Peter Foley
Sat Mar 18, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: "Don't time the market" vs. "Buy low, sell high"
Replies: 69
Views: 4828

Re: "Don't time the market" vs. "Buy low, sell high"

RetiredinKaty wrote: Disciplined rebalancing is contrarian, “buy low, sell high” in practice. Maintaining a fixed allocation is “don’t time the market”. No conflict in this for me. I have long experienced cognitive dissonance over “Stay the course” and “Age – x in bonds”. I don’t automatically glide...
by Peter Foley
Sat Mar 18, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Divesting to heirs. When and how quickly.
Replies: 45
Views: 4116

Re: Divesting to heirs. When and how quickly.

I would advise considering a trust, or perhaps four trusts. The specifics of a trust could be worked out with an attorney who specializes in estate planning and trusts. My concern is the age range of your children and the fact that we know nothing of their personalities. I hope bsteiner picks up on ...
by Peter Foley
Fri Mar 17, 2017 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice on an inheritance.
Replies: 15
Views: 1269

Re: Need advice on an inheritance.

Can we backtrack to the beginning with the annuity? Is it a qualified annuity? (Essentially an IRA where everything that comes out will be taxed as ordinary income.) Or, a non-qualified annuity? (Essentially an annuity purchased with after tax dollars.) With these annuities if you opt for a regular ...
by Peter Foley
Thu Mar 16, 2017 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Roth and Marriage ?
Replies: 12
Views: 1471

Re: ROTH AND MARRIAGE ?

All IRAs, Roth and Traditional are individual. Individual Retirement Account.

It is also up to you as to whom you name as a beneficiary.
by Peter Foley
Thu Mar 16, 2017 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Which Version of TurboTax do I really need?
Replies: 4
Views: 761

Re: Which Version of TurboTax do I really need?

I agree with livesoft. You might also check the two year summaries for each version.
by Peter Foley
Thu Mar 16, 2017 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: Hitting your number
Replies: 13
Views: 1658

Re: Hitting your number

Congratulations. Knowing your age would be nice.

In addition to hitting your number another goal you might consider would be to have your basic expenses covered by your non equity allocation. This may or may not be important to you, but for me it was a factor in setting my AA in retirement.
by Peter Foley
Thu Mar 16, 2017 11:35 am
Forum: Investing - Help with Personal Investments
Topic: Father is 90, taking over his investments
Replies: 23
Views: 2530

Re: Father is 90, taking over his investments

Timmy 11 You do not need an investment plan nor a financial adviser. With most this money currently sitting in cash, a CD ladder is about as complicated an approach as you need for his money. The more important issues are simplicity and the tax efficiency of withdrawals to cover his cash flow needs....
by Peter Foley
Wed Mar 15, 2017 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Help with rebalancing
Replies: 19
Views: 1468

Re: Asset Allocation - Help with rebalancing

Radstar, again welcome. Duckie gave you good advice. If you are looking for another opinion, mine would be the same. Before you roll over you 403b you might check and see if it has a good stable value option. If it does you might consider leaving some funds there if it is possible for you to do so.
by Peter Foley
Wed Mar 15, 2017 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: IRA RMDS
Replies: 8
Views: 534

Re: IRA RMDS

If they are all IRAs you can aggregate the total and take the distribution from one of them. My understanding is that you cannot aggregate 401ks or 403bs.
by Peter Foley
Wed Mar 15, 2017 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Question on which funds for new Roth IRA
Replies: 7
Views: 390

Re: Question on which funds for new Roth IRA

The number 2 route seems more straight forward.
by Peter Foley
Wed Mar 15, 2017 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Father is 90, taking over his investments
Replies: 23
Views: 2530

Re: Father is 90, taking over his investments

We are in a similar situation with my wife's mother, age 96. Katietsu wrote: If you get the right documentation, almost all his expenses will be tax deductible. Here is an article that details this: http://www.elderlawanswers.com/tax-dedu ... costs-7184 It sounds like you will be able to meet the re...
by Peter Foley
Tue Mar 14, 2017 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice
Replies: 2
Views: 236

Re: Portfolio advice

Welcome to the forum. If you were to list the funds you have and the expense ratios you will likely get a fair amount of feedback. Sometimes it is worth while to stay with an old plan because it has good investment options and a low fee structure. Also, what is your desired asset allocation (mix of ...
by Peter Foley
Tue Mar 14, 2017 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Question on which funds for new Roth IRA
Replies: 7
Views: 390

Re: Question on which funds for new Roth IRA

When just starting out I would not worry too much about diversification. Your contributions will dwarf any return you see for the next few years. I would start with Total Stock market and add a bond fund in a year or two.
by Peter Foley
Mon Mar 13, 2017 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: Feedback on retirement withdrawal rates
Replies: 6
Views: 754

Re: Feedback on retirement withdrawal rates

The new information is helpful: Nova 1967 wrote: Thanks for the response, Yes the 800K I stated is entirely made up of the TSP and Roth. I have mandatory retirement at 57 therefore I will be eligible for penalty free withdrawal. The 4% withdrawal rate makes sense but I assume it would be variable de...
by Peter Foley
Mon Mar 13, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Finding The "Sweet Spot" on a Roth Conversion
Replies: 26
Views: 2541

Re: Finding The "Sweet Spot" on a Roth Conversion

Just to clarify, is the RMD itself $73,000 or will the RMD raise your taxable income to $73,000?
by Peter Foley
Mon Mar 13, 2017 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Finding The "Sweet Spot" on a Roth Conversion
Replies: 26
Views: 2541

Re: Finding The "Sweet Spot" on a Roth Conversion

This would be a lot easier to do if you posted your marital status and your taxable income w/o any Roth conversion. Other factors are important as well. Current marginal tax rate versus estimated tax rate in retirement. Estimated age of receipt of SS benefits. Estimated tax rate when RMD's start. Wh...
by Peter Foley
Sun Mar 12, 2017 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Mitigating taxes on inherited IRA's and Annuities...
Replies: 14
Views: 889

Re: Mitigating taxes on inherited IRA's and Annuities...

Depending on the amounts you have received, when the deaths occurred, how beneficiary designations were made, and the tax liability of the non qualified annuity, there are a number of possible approaches to mitigating taxes. Can you turn one or more of the IRAs into stretch IRAs? Can you disclaim an...
by Peter Foley
Sun Mar 12, 2017 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Feedback on retirement withdrawal rates
Replies: 6
Views: 754

Re: Feedback on retirement withdrawal rates

It would be helpful to know the rules regarding withdrawal of funds from TSP. Is there a penalty for early withdrawal? This may be a little more complicated than the scenarios you laid out. The exact sources of income in each year are important because they have an impact on your tax obligation. I w...
by Peter Foley
Sat Mar 11, 2017 11:32 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Advice for Investments
Replies: 5
Views: 363

Re: Seeking Advice for Investments

It is usually advisable to go the target retirement route, a route that maintains an AA for your, or go the do-it-yourself route and establish and maintain your own AA. In your case, I would go the do-it-yourself route. In addition, I would invest almost 100% in a Vanguard index 500 fund or total st...
by Peter Foley
Sat Mar 11, 2017 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Buying Relative Out Of Shared Property
Replies: 3
Views: 428

Re: Buying Relative Out Of Shared Property

You could probably higher a title company to do the closing. There are traditional items that are paid by seller and others by buyer. When we sold our investment property we hired a closer to handle the funds and do all the paperwork on our end. The cost was about $500. You need to think about prora...
by Peter Foley
Sat Mar 11, 2017 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Help and critique with portfolio and tax efficient placement
Replies: 4
Views: 383

Re: Help and critique with portfolio and tax efficient placement

Again welcome> Vicp88 wrote: I have tentatively decided I would like to aim for a 70/30 stock/bond allocation. I like the idea of a simple 3 fund portfolio. I'm sure I would be capable of managing more, but a simple approach will be easier for me to stick to in the long run. I am open to any advice ...
by Peter Foley
Sat Mar 11, 2017 11:02 pm
Forum: Personal Finance (Not Investing)
Topic: How do you keep spouse informed of family finances?
Replies: 36
Views: 4429

Re: How do you keep spouse informed of family finances?

We have a "ways and means committee" meeting about once a quarter. Sometime late in each year I go over the strategies we will be using for the upcoming year (Roth conversion from which accounts, withdrawals from which accounts, charitable giving and gifting to children and grandchildren f...
by Peter Foley
Sat Mar 11, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Re-Balancing, but how? (& Retirement Questions)
Replies: 16
Views: 843

Re: Re-Balancing, but how? (& Retirement Questions)

tyjy wrote: Question Re: reinvesting dividends in the taxable account: I still reinvest in the two Total Stock funds we have in our taxable account just not the indiv. stocks. Your comments make sense, so should I also stop reinvesting dividends in the Total funds too? It is not a big deal either wa...
by Peter Foley
Sat Mar 11, 2017 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Form
Replies: 12
Views: 753

Re: Turbo Tax Form

I've always used the CD version so this may not work. With the CD version it is possible to toggle back and forth between the interview version and the forms version. (This is especially helpful if you don't think you understand the interview question but know what the output should be.) In the vers...

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