Search found 4933 matches

by Peter Foley
Sat Nov 16, 2019 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Charitable Distribution Tax Question
Replies: 3
Views: 209

Re: Qualified Charitable Distribution Tax Question

Thanks sport. I edited my post while you were writing. That clarifies it for me - you can donate IRA money to charity and get an itemized deduction only if you do not define it as a QCD.

Thanks Silk. Your explanation makes sense to me too.
by Peter Foley
Sat Nov 16, 2019 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Charitable Distribution Tax Question
Replies: 3
Views: 209

Qualified Charitable Distribution Tax Question

At a recent Boglehead's meeting there was a discussion regarding RMD's and Qualified Charitable Distributions. From the Michael Kitce's Blog: The benefit of doing a QCD from an IRA is that the distribution comes out of the IRA without any of the tax consequences that would otherwise apply to a withd...
by Peter Foley
Sat Nov 16, 2019 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: 403B vs 457B
Replies: 15
Views: 1046

Re: 403B vs 457B

Just to clarify. My wife worked at a public university. My original answer should have specified that all things being equal between the 403b and the 457b, I would recommend the 457b route if the 457b is a public 457b.
by Peter Foley
Wed Nov 13, 2019 8:39 pm
Forum: Personal Investments
Topic: Winning the Game - Reducing Risk
Replies: 43
Views: 5317

Re: Winning the Game - Reducing Risk

I believe that age in bonds is a relatively conservative approach to investing as one approaches traditional retirement age. I would not use that approach if I were considering retiring very early. Access to guaranteed income in retirement also changes the calculation. Not knowing the implications o...
by Peter Foley
Wed Nov 13, 2019 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: 403B vs 457B
Replies: 15
Views: 1046

Re: 403B vs 457B

The 457b plan is more flexible in terms of withdrawals w/o penalty. This is a factor should you choose to retire early. There are also some catch up provisions in one's last few years of employment under certain circumstances with a 457b. If the investment options are similar and fund costs are simi...
by Peter Foley
Fri Nov 08, 2019 8:45 pm
Forum: Personal Investments
Topic: Retirement Question - fund allocation
Replies: 1
Views: 278

Re: Retirement Question - fund allocation

You should have some allocation to bonds. That allocation would be best held in a tax deferred account. At your age the usual recommendation is to have something in the rage of 20% bonds, plus or minus 5% to 10%. In general it is better to post a fund's name than its symbol. Many of us do not memori...
by Peter Foley
Wed Nov 06, 2019 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Transferring Daughter's Funds to Her Efficiently
Replies: 16
Views: 1435

Re: Transferring Daughter's Funds to Her Efficiently

If your daughter is 20 and is a full time student, selling appreciated shares of a stock or mutual fund might require her to pay tax on that sale. If there are even relatively modest profits, her tax at the "kiddie tax" rate might be higher than the tax you would pay on long term capital gains. Ther...
by Peter Foley
Mon Nov 04, 2019 11:36 pm
Forum: Personal Investments
Topic: Your Opinion Please [Asset Allocation]
Replies: 14
Views: 1230

Re: Your Opinion Please

Total stock market is the easier play and the rest is unnecessary. Some recommend being in the range of 25% to 75% equities with the balance in bonds. Others promote the range of 40% to 60% equities with the balance in bonds. If you do not have much ability to take risk (little guaranteed income in ...
by Peter Foley
Sat Nov 02, 2019 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Does Kiddie tax apply to grandchildren gifts?
Replies: 7
Views: 915

Re: Does Kiddie tax apply to grandchildren gifts?

Okay - after rereading the original post. The 24 year old nephew would not be subject to the kiddie tax on the capital gains if he sold the appreciated shares based on his age. The 20 year old grandson would only be subject to the tax if he were a student and if he sold enough shares with capital ga...
by Peter Foley
Sat Nov 02, 2019 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Does Kiddie tax apply to grandchildren gifts?
Replies: 7
Views: 915

Re: Does Kiddie tax apply to grandchildren gifts?

Are we off by a year in this example or is the source I looked at wrong? "The kiddie tax only applies to: children under 19 years of age, and children aged 19 through 23 who are full-time students and whose earned income does not exceed half of the annual expenses for their support. A child who turn...
by Peter Foley
Mon Oct 28, 2019 3:41 pm
Forum: Personal Investments
Topic: Portfolio help and guidance
Replies: 5
Views: 449

Re: Portfolio help and guidance

A few observations . . . I'm of similar mind to RadAudit on most of this. I'm not a fan of combining Target Retirement funds with equity and bond funds. It makes re-balancing harder and basically offsets the rebalancing that is taking place in the target retirement fund. Also, because they hold bond...
by Peter Foley
Sat Oct 26, 2019 7:30 pm
Forum: Personal Investments
Topic: Portfolio and personal Investment help
Replies: 6
Views: 761

Re: Portfolio and personal Investment help

401a accounts are sometimes offered by public academic institutions. If such is the case, in many instances contributions can be made both to a 401a account and a 457b account. The 457b account has the advantage of withdrawals w/o penalty (yes taxes are due) when one leaves that employer. It is a gr...
by Peter Foley
Wed Oct 09, 2019 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Question about the Safe Withdraw Rate rule
Replies: 20
Views: 1508

Re: Question about the Safe Withdraw Rate rule

I've always understood it the way that MP123 describes it.

Some studies based on the original Trinity study have used that same premise. For example you can take out slight more if you eliminate the inflationary increase in withdrawals in down market years. (Guyton - I believe.)
by Peter Foley
Sun Oct 06, 2019 7:16 pm
Forum: US Chapters
Topic: Minnesota mtg | Sat, Oct-12 | 9:30am | Minnetonka
Replies: 3
Views: 717

Re: Minnesota mtg | Sat, Oct-12 | 9:30am | Minnetonka

Just a brief update. For those not familiar with Mike Piper's article, Mike presents a number of retirement "rules of thumb" concerning these topics: Social Security, Tax Planning, Asset Allocation, Spending Rate, Insurance. The breakout session will briefly present each topic and the encourage disc...
by Peter Foley
Thu Oct 03, 2019 3:02 pm
Forum: Personal Investments
Topic: 2019 contribution best approach
Replies: 12
Views: 1067

Re: 2019 contribution best approach

Homestretch makes a good observation. The backdoor Roth this year complicates the situation.
by Peter Foley
Wed Oct 02, 2019 7:40 pm
Forum: Personal Investments
Topic: 2019 contribution best approach
Replies: 12
Views: 1067

Re: 2019 contribution best approach

OP - Two terms you use to describe the future employment are in conflict. Work as a contractor implies "independent contractor." If she starts as an independent contractor (1099) she would be eligible for a SIMPLE IRA. If she starts as a W-2 worker, she is an employee and she would not be able to us...
by Peter Foley
Tue Oct 01, 2019 10:51 pm
Forum: US Chapters
Topic: Minnesota mtg | Sat, Oct-12 | 9:30am | Minnetonka
Replies: 3
Views: 717

Re: Minnesota mtg | Sat, Oct-12 | 9:30am | Minnetonka

Any update on what additional breakout topics might be presented or discussed?
by Peter Foley
Fri Sep 06, 2019 8:01 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth: Why Risk-Profile Questionnaires Don’t Work
Replies: 48
Views: 3748

Re: Allan Roth: Why Risk-Profile Questionnaires Don’t Work

I've taken a couple surveys and provided one to MN Bogleheads at a meeting in 2009 or 2010. We took the survey and scored it. Those who had previously taken a survey were less risk tolerant by one level than the outcome of a previous survey. We were just coming out of a recession and the emotion of ...
by Peter Foley
Mon Aug 26, 2019 9:06 pm
Forum: Personal Investments
Topic: Early Retirement (ERN) Glidepath Question.
Replies: 10
Views: 1405

Re: Early Retirement (ERN) Glidepath Question.

Marcopolo wrote in response to a statement I made earlier: Peter Foley wrote: ↑Mon Aug 26, 2019 3:09 pm If one has outside income (pension, rental income, inherited IRA, etc) that meets most of one's retirement income needs, that approach is slightly less important. marcopolo If that is the case, it...
by Peter Foley
Mon Aug 26, 2019 3:09 pm
Forum: Personal Investments
Topic: Early Retirement (ERN) Glidepath Question.
Replies: 10
Views: 1405

Re: Early Retirement (ERN) Glidepath Question.

While I have not read ERN's article regarding glidepaths, one of the nuances that has been mentioned in other articles is that a "rising equity glide path" helps mitigate the impact of a bad sequence of returns. This approach is more important if one is withdrawing from one's retirement savings duri...
by Peter Foley
Sat Aug 24, 2019 11:11 pm
Forum: Personal Investments
Topic: Asset Allocation Going Into Retirement
Replies: 13
Views: 1716

Re: Asset Allocation Going Into Retirement

Back to the basic question.

With your level of assets and proposed spending your are fine with your current allocation. I would be inclined to reduce the stock allocation to 40% if you want to take a conservative approach. I would not go less than 40% if you believe you can handle the risk.
by Peter Foley
Mon Aug 19, 2019 5:20 pm
Forum: Personal Investments
Topic: Advice Requested: My Mom's Edward Jones Account
Replies: 30
Views: 3063

Re: Advice Requested: My Mom's Edward Jones Account

Linda and Anne - One of the most important factors to consider with respect to investing is diversification. Many brokerage firms achieve diversification by investing in numerous appropriate, but not necessarily low cost mutual funds. If they have you invested in 20 different funds they can make an ...
by Peter Foley
Sun Aug 18, 2019 7:34 pm
Forum: Personal Investments
Topic: Portfolio OK but need advice about closing yearly income gap from age 66 to RMD time
Replies: 12
Views: 1206

Re: Portfolio OK but need advice about closing yearly income gap from age 66 to RMD time

You have a fair amount of money in qualified accounts (IRAs and equivalent). With most of those funds conservatively invested, you are earning very little on them. Keep in mind that 50% of your Social Security becomes taxable when you have other taxable earnings of $25,000. If your estimate of annua...
by Peter Foley
Sun Aug 18, 2019 7:09 pm
Forum: Personal Investments
Topic: At the cross roads, looking for wisdom & advice
Replies: 7
Views: 1538

Re: At the cross roads, looking for wisdom & advice

Certainly you should look to simplify. Can you clarify which assets are inherited with a step up basis? Are those the ones listed or are they in addition to what is shown? Once you quit your job you will be in a low tax bracket and that will lesson potential tax consequences related to simplificatio...
by Peter Foley
Sat Aug 17, 2019 6:48 pm
Forum: Personal Consumer Issues
Topic: Aliens have captured my husband [wants to buy a Porsche]
Replies: 138
Views: 11251

Re: Aliens have captured my husband [wants to buy a Porsche]

I was captured in my mid 20's, first an MG then a Triumph TR-6 then a Porsche 914 (kind of a Porsche). I was released in my early 30's to care for my children. As I approach 70 I have seen them around, but have avoided capture so far. They are trying to bait me with a Lexus!
by Peter Foley
Fri Aug 16, 2019 10:50 pm
Forum: Personal Investments
Topic: Investing Father's Assets Who Is In Nursing Home (POA)
Replies: 68
Views: 4761

Re: Investing Father's Assets Who Is In Nursing Home (POA)

OP asked: Could you explain the reason behind the Roth conversion. The vanguard one is an IRA now. How does this work and why does it help? Basically, money withdrawn from an IRA is taxed at the owner's rate. In the case of your father, with high medical expenses the rate is likely to be zero or clo...
by Peter Foley
Fri Aug 16, 2019 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Financial planning tools - MaxiFi, Fire Calc, etc?
Replies: 33
Views: 2688

Re: Financial planning tools - MaxiFi, Fire Calc, etc?

While not an exact fit to your question your might find the information I posted to another thread helpful. One of our presenters at a quarterly BH meeting in Minnesota did a presentation/review of a number of different calculators. If memory serves me correctly Firecalc was rated very highly by the...
by Peter Foley
Fri Aug 16, 2019 8:44 pm
Forum: Personal Investments
Topic: Ok it’s time for, My Portfolio review
Replies: 12
Views: 1844

Re: Ok it’s time for, My Portfolio review

In your introduction you mention that you are a widow. Do any of your taxable holdings have the possibility of a step up basis?
by Peter Foley
Wed Aug 14, 2019 7:25 pm
Forum: Personal Investments
Topic: Investing Father's Assets Who Is In Nursing Home (POA)
Replies: 68
Views: 4761

Re: Investing Father's Assets Who Is In Nursing Home (POA)

bsteiner wrote: Why doesn't he instead see a trusts and estates lawyer? A trusts and estates lawyer could help him set up Roth conversions (he should be in a low bracket now between his medical expenses and his not yet having to take required distributions), and could prepare a Will and beneficiary ...
by Peter Foley
Wed Aug 14, 2019 7:00 pm
Forum: Personal Investments
Topic: Is my 529 glide path too aggressive?
Replies: 20
Views: 1723

Re: Is my 529 glide path too aggressive?

jb3
While you time horizon is still long term, I don't question your changes at all. The bull market we are in is long in the tooth and you are in essence taking some of your winnings off the table.
by Peter Foley
Mon Aug 12, 2019 3:53 pm
Forum: Personal Investments
Topic: Asset allocation tweaks
Replies: 7
Views: 742

Re: Asset allocation tweaks

I'm not aware of your risk tolerance or you need to take risk, but I personally would want to be closer to 50/50 early in retirement. before moving everything in the 457 plan I would check to see what their stable value fund pays. It can be a good diversifier for bonds. You are fine if you need to d...
by Peter Foley
Fri Aug 09, 2019 3:17 pm
Forum: Personal Investments
Topic: A different view on withdrawal rates
Replies: 2
Views: 616

Re: A different view on withdrawal rates

Interesting article Paul. Thanks. This is an often discussed topic in MN Boglehead meeting breakout sessions.
by Peter Foley
Fri Aug 09, 2019 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: What is the best way to pass on wealth to heirs?
Replies: 30
Views: 3161

Re: What is the best way to pass on wealth to heirs?

Could you add some detail to your question?

The direction this could take might be trust, will, or transfer on death implications.

I think you are more interested in which type of account is best to leave heirs?
by Peter Foley
Thu Aug 08, 2019 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Calculator - how long your money will last?
Replies: 7
Views: 1508

Re: Calculator - how long your money will last?

One of our presenters at a quarterly BH meeting in Minnesota did a presentation/review of a number of different calculators. If memory serves me correctly Firecalc was rated very highly by the presenter and members of the audience. Here is a link to a review of a number of calculators: http://www.ca...
by Peter Foley
Tue Aug 06, 2019 3:42 pm
Forum: Personal Investments
Topic: Rebalancing Question
Replies: 8
Views: 738

Re: Rebalancing Question

When one is still accumulating through an employer's plan, a common way to rebalance is to do it once, look at it periodically, (every 6 months to a year or so) and then redirect future contributions to the asset class that is lower than the percentage desired.
by Peter Foley
Mon Aug 05, 2019 1:45 pm
Forum: Personal Consumer Issues
Topic: What is your hobby and how did it come to be your hobby?
Replies: 146
Views: 16221

Re: What is your hobby and how did it come to be your hobby?

Romance languages_ I majored in Spanish in college, a masters in Spanish required a second foreign language (Portuguese) and a PH. D. required a third (Italian). Genealogy and meeting my French relatives lead me to reasonable fluency in a fourth Romance language. Bike repair - I bike and am somewhat...
by Peter Foley
Sat Aug 03, 2019 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: For long time retirees, do you use a spreadsheet?
Replies: 37
Views: 2951

Re: For long time retirees, do you use a spreadsheet?

I created an income/outflow spreadsheet about a year before the great recession (so 2007 - 2009ish). It projected spending, pension income, and a planned delay in taking SS benefits. I retired in 2012 and still use the same spreadsheet. I have an additional spreadsheet that tracks investments by acc...
by Peter Foley
Fri Aug 02, 2019 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security -- Take it at 62, 67 or 70
Replies: 329
Views: 28824

Re: Social Security -- Take it at 62, 67 or 70

smitcat wrote: In our case.... Claiming at 62 prevents us from effectively doing Roth conversions Claiming at 62 will not leave one spouse with a larger SS payment Claiming at 62 causes more tax issues later on Claiming at 62 will leave us with less 'spendable' funds after taxes Ditto. Except for us...
by Peter Foley
Fri Aug 02, 2019 3:32 pm
Forum: Personal Consumer Issues
Topic: Costa Rica travel
Replies: 20
Views: 2210

Re: Costa Rica travel

I would agree with others regarding Quepos and Manuel Antonio. It is worth a couple days, but not 4. Hope you are planning day trips of fishing expeditions.
by Peter Foley
Wed Jul 31, 2019 10:32 pm
Forum: Personal Investments
Topic: Pre-Retirement Portfolio Review
Replies: 14
Views: 2303

Re: Pre-Retirement Portfolio Review, ‘Won the Game’?

I would agree that you will have time to contribute to a Roth (or convert) after retirement. I would simply establish the account now with a one time contribution of a modest amount - say $2000. That will start the 5 year clock running for your wife.
by Peter Foley
Wed Jul 31, 2019 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security -- Take it at 62, 67 or 70
Replies: 329
Views: 28824

Re: Social Security -- Take it at 62, 67 or 70

One also has to think in terms of spendable income, i.e., the after tax value of the social security. If there is other taxable income as part of the equation, one's SS benefit can cause that income to be taxed at a very high marginal rate.
by Peter Foley
Wed Jul 31, 2019 4:53 pm
Forum: Personal Investments
Topic: Pre-Retirement Portfolio Review
Replies: 14
Views: 2303

Re: Pre-Retirement Portfolio Review, ‘Won the Game’?

Because you are still a few years away from retirement I would suggest two actions: 1. Get a Roth started for each of you now. (You only indicate one Roth.) This will eliminate any potential impact of the 5 year rule if you have need to access a Roth account earlier than anticipated. 2. Use any mark...
by Peter Foley
Mon Jul 29, 2019 9:00 pm
Forum: US Chapters
Topic: Minnesota BH Main Meeting 4/20/19
Replies: 12
Views: 1647

Re: Minnesota BH Main Meeting 4/20/19

Either Fallible or I usually post the meeting notice. We have experimented with how much in advance we should post. The range has been from one month to two weeks. Keeping the post visible is the issue. If you post one month in advance you get a few viewers and comments and then the thread disappear...
by Peter Foley
Thu Jul 25, 2019 11:35 pm
Forum: Investing - Theory, News & General
Topic: Early retirement - when to start thinking about less equity?
Replies: 34
Views: 3135

Re: Early retirement - when to start thinking about less equity?

I've read the articles by Kitces and Pfau regarding a "rising equity glide path" and personally believe this is a prudent approach. This thread is the first time I have seen the graph. I'm wondering out loud - does this graph really apply to someone who retires early? In your case one who retires at...
by Peter Foley
Mon Jul 22, 2019 4:25 pm
Forum: Investing - Theory, News & General
Topic: Optimized Roth Conversion Model
Replies: 39
Views: 4938

Re: Optimized Roth Conversion Model

When modeling Roth conversions (using this new calculator, i-orp, or the Retiree Portfolio Model) one key component is spending as has been emphasized in this thread. Another key component is the ratio of funds in taxable, TIRA, and Roth. Without a balance in taxable from which to pay the taxes on a...
by Peter Foley
Mon Jul 22, 2019 1:35 pm
Forum: Investing - Theory, News & General
Topic: Optimized Roth Conversion Model
Replies: 39
Views: 4938

Re: Optimized Roth Conversion Model

Thanks for working on this important topic. More later.
by Peter Foley
Fri Jul 19, 2019 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: Undo Joint Account with Parents?
Replies: 38
Views: 3014

Re: Undo Joint Account with Parents?

In Minnesota, and perhaps a number of other states, one can set up a joint bank account "for convenience." My wife did this with her mother after her father passed. I advised my wife not to set up a regular joint account. My thought was, as the account has a significant balance, I did not want my wi...
by Peter Foley
Wed Jul 17, 2019 7:43 pm
Forum: Personal Investments
Topic: What is your Re-balancing Trigger?
Replies: 28
Views: 2027

Re: What is your Re-balancing Trigger?

I rebalance rarely. Since I do not slice and dice and only care about the ratio of equities to non equities, the 5% rule is sufficient. If you are in the 60/40 to 40/60 range in terms of AA, it takes a lot of market movement to hit the 5% mark. Because our bond allocation is almost entirely in tax d...
by Peter Foley
Tue Jul 16, 2019 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: Wiki - How to campaign for a better 403(b) plan
Replies: 14
Views: 1083

Re: Wiki - How to campaign for a better 403(b) plan

Thanks for the addition. I really took to heart one comment. 3. Based on the previous research, you need to be able to concisely and clearly articulate the scale of the problem, why some vendors are exploitative, and why others should replace them. Expect a 90% probability that everybody you speak t...
by Peter Foley
Tue Jul 16, 2019 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: The exact month to begin receiving Social Security benefits for the maximum.
Replies: 44
Views: 3681

Re: The exact month to begin receiving Social Security benefits for the maximum.

Good Listener . . . With a 70th birthday in November I would take a close look at the rest of my income for that year. Are you doing Roth conversions, trying to lower the balance in your traditional IRA, planning on cashing in some long term capital gains? If any of the above you might consider wait...