Search found 3956 matches

by Peter Foley
Mon Aug 21, 2017 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Should my grandfather liquidate?
Replies: 22
Views: 1476

Re: Should my grandfather liquidate?

If his income is a low as you state and an additional $12,000 in income would not affect the taxation of his SS benefits I would be inclined to cash it in. Your father paying about 10% in taxes is about as low as it gets. Would not his heirs likely pay a higher rate? We are not talking about a big s...
by Peter Foley
Mon Aug 21, 2017 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Should my grandfather liquidate?
Replies: 22
Views: 1476

Re: Should my grandfather liquidate?

thebigad wrote: So, on the IRA point, his wife recently passed away (my grandmother). He is being asked to assume or inherit her IRA. Given that he doesn't need any IRA funds now and does not have much taxable income each year to speak of (roughly $12,000), which should he do? So much more informati...
by Peter Foley
Sun Aug 20, 2017 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 26
Views: 2501

Re: Adjusting AA as retirement nears

Withdrawal rate is certainly a factor as is the amount of flexibility in spending you will have in retirement. If you feel you will have some flexibility to adjust spending, I suggest you take a look at the concept of a "Rising Equity Glide Path." Wade Pfau and Michael Kitces wrote an article about ...
by Peter Foley
Sun Aug 20, 2017 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Non-Retirement Portfolio Help
Replies: 13
Views: 1148

Re: Seeking Non-Retirement Portfolio Help

Thanks for providing the additional information. Knowing that you have retirement accounts is helpful. This allows you to hold your bond allocation in your retirement accounts in lieu of stock funds and/or target retirement funds and hold more equity mutual funds in your taxable account. You could c...
by Peter Foley
Sat Aug 19, 2017 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Non-Retirement Portfolio Help
Replies: 13
Views: 1148

Re: Seeking Non-Retirement Portfolio Help

A little back to the basics from a BH perspective. When choosing mutual funds there are a few ways to go. All in one fund options - a target retirement fund or Lifecycle fund that invests in a mix of stocks and bonds. Another approach is to use a mix of funds to achieve your desired asset allocation...
by Peter Foley
Sat Aug 19, 2017 7:23 pm
Forum: Forum Issues and Administration
Topic: Home Page Updated
Replies: 53
Views: 3142

Re: Home Page Updated

Clearing the cache worked for me as well. Prior to that the print was small and the page was busy.
by Peter Foley
Sat Aug 19, 2017 10:09 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 77
Views: 7070

Re: How I use I-ORP, and who shouldn't

Freebeer wrote in red below: Peter Foley wrote: ↑Fri Aug 18, 2017 2:57 pm munemaker wrote: ...converting $50K per year for two years provided a larger estate than converting $20K for five years. This is the effect of rate of return in the Roth account which I set to be higher than that of a tax defe...
by Peter Foley
Fri Aug 18, 2017 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Portfolio Questions
Replies: 9
Views: 1166

Re: Early Retirement Portfolio Questions

A few thoughts: You are currently close to 75/25 rather than 80/20. (14 + 6 +4 in bonds). I would stick with that AA in that you have left the workforce. While in a very low tax bracket I would consider converting the Traditional to a Roth. After 5 years that would give you access to more bonds as y...
by Peter Foley
Fri Aug 18, 2017 2:57 pm
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 77
Views: 7070

Re: How I use I-ORP, and who shouldn't

munemaker wrote: Please define "too aggressive." Does that mean not maximizing your income or estate, or just beyond your personal comfort level. I ask because the program notes caution that novices may not be comfortable with the recommended level of Roth conversions. "Too aggressive " in this cont...
by Peter Foley
Fri Aug 18, 2017 10:28 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 77
Views: 7070

Re: How I use I-ORP, and who shouldn't

I too have run a number of scenarios in i-orp. Many scenarios were options I might consider with regard to our personal situation. Then I ran a couple abstract options with assets arrayed differently. (All of this was in advance of a presentation regarding Retirement Calculators by a member of the s...
by Peter Foley
Fri Aug 18, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Investment Plan
Replies: 7
Views: 479

Re: Investment Plan

OP wrote: Regarding the LTC - we opted not to purchase it but still see the value in having it in the long term plan. What I did was opened the Roth IRA and contribute the same monthly payment I would have paid the insurance company. When long term care was first offer at work (15 + years ago ?) I w...
by Peter Foley
Thu Aug 17, 2017 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Can I get a Boglehead view of how we are doing?
Replies: 6
Views: 1073

Re: Can I get a Boglehead view of how we are doing?

A couple suggestions from articles I have read: • Age based savings goals* • Age 30: Savings = 0.6 x Income Age 40: Savings = 2.4 x Income Age 50: Savings = 5.2 x Income Age 60: Savings = 9.4 x Income *Money Magazine, May 2013 • The “number” – lifestyle dependent 75%?* *Based on a T. Rowe Price Surv...
by Peter Foley
Thu Aug 17, 2017 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: quick estate question
Replies: 56
Views: 2648

Re: quick estate question

westrichj312: No will or executor. The attorney said the credit card debt and medical are unsecured debt they are small and they never come after the children for unsecured debts. I will have to call a few other attorneys and see if they give same advice. There may be both a legal approach and an et...
by Peter Foley
Tue Aug 15, 2017 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: Moving to Vanguard: Annuities and IRA
Replies: 8
Views: 684

Re: Moving to Vanguard: Annuities and IRA

Regarding the annuities . . . Are they pre tax (IRA) or post tax ? The tax treatment for withdrawals is different depending on which of the two they are.
by Peter Foley
Mon Aug 14, 2017 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: Moving to Vanguard: Annuities and IRA
Replies: 8
Views: 684

Re: Moving to Vanguard: Annuities and IRA

Suggested allocation: US Stocks: 45% 25% large cap VLCAX 8% small cap VSMAX 8% small cap value VSIAX 4% REIT VGSLX International Stocks: 15% 9% developed foreign markets VTMGX 3% emerging markets VEMAX 3% international small cap VFSVX Bonds/Cash: 40% Short term bonds & cash VBIRX Mid term bonds 25% ...
by Peter Foley
Mon Aug 14, 2017 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Donor advised fund at Vanguard or elsewhere?
Replies: 42
Views: 2963

Re: Donor advised fund at Vanguard or elsewhere?

letsgobobby wrote: you may misunderstand something. while vanguard DAF holds only vanguard funds, you can donate ANY appreciated security to the DAF, taking a full deduction and avoiding LTCG taxes. Vanguard will then liquidate the position and you can reinvest the funds in the (vanguard) fund optio...
by Peter Foley
Mon Aug 14, 2017 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: Both tIRA and Roth investment composition
Replies: 4
Views: 425

Re: Both tIRA and Roth investment composition

While it is somewhat dependent on from which accounts one is going to withdraw funds first, the approach usually recommended is to hold equities in one's Roth and bonds in a tax deferred account.* The reasoning is that the Roth will grow tax free so you want to optimize the opportunity for growth in...
by Peter Foley
Mon Aug 14, 2017 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: Testing Our Allocations Emotionally
Replies: 26
Views: 1658

Re: Testing Our Allocations Emotionally

ruralavalon wrote: It was different and much more difficult emotionally in 2008, because by then I was paying attention and was 63 years old and planning my retirement. We did not sell any stock funds. It was not hard to continue monthly contributions which were put into more stock index funds. It w...
by Peter Foley
Mon Aug 14, 2017 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: tax consequences of "windfall"
Replies: 2
Views: 776

Re: tax consequences of "windfall"

A solo 401k may be the way to go. I believe one can deduct and amount for the "employee" and for the "employer" up to a max of $53,000. New York and Utah are often mentioned as having good 529 plans, along with a few others. We advised our daughter to go with the New York plan based on low cost and ...
by Peter Foley
Mon Aug 14, 2017 5:03 pm
Forum: Investing - Theory, News & General
Topic: Building A Warchest
Replies: 32
Views: 3039

Re: Building A Warchest

I would suggest that you take a look at the Permanent Portfolio.

Not my cup of tea, but some like it.
by Peter Foley
Sat Aug 12, 2017 11:23 pm
Forum: Personal Consumer Issues
Topic: Extended stay feedback: Norwich, UK; Barcelona; Lyon, FR; Anchorage, AK
Replies: 4
Views: 461

Re: Extended stay feedback: Norwich, UK; Barcelona; Lyon, FR; Anchorage, AK

I'm familiar with all the locations except Norwich. I would explore the language used in the schools if you consider Barcelona. Catalan is the language most often heard in Barcelona. I do not know what languages are taught in the schools or if there are schools that specialize in particular language...
by Peter Foley
Sat Aug 12, 2017 11:12 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 8-12-2017 + Summary
Replies: 19
Views: 1769

Re: Minnesota BH Quarterly Meeting August 12, 2017

I have not seen how exactly the change to add a 529 plan deduction will be implemented. Rules will be adopted and forms will be designed to handle how the deduction works and what evidence one might be asked to produce to claim the deduction. Here is the language in statute: Subd. 23. Contributions ...
by Peter Foley
Sat Aug 12, 2017 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation and tax treatment
Replies: 5
Views: 490

Re: Asset allocation and tax treatment

As noted you can do this either way. I have done the calculation a couple times just to note the difference. In my case with a healthy portion of our tax deferred in bonds, a post tax asset allocation is about 5% higher in equities than a pre tax. I would recommend doing it both ways once just to no...
by Peter Foley
Sat Aug 12, 2017 7:22 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 8-12-2017 + Summary
Replies: 19
Views: 1769

Re: Minnesota BH Quarterly Meeting August 12, 2017

While some of this will go out in an e-mail, here are a couple items from the plenary session: Legislative changes signed into law during the Minnesota 2017 legislative Session: Section 7 . Subtraction for contributions to 529 plans. Allows an income tax subtraction of up to $1,500 ($3,000 for marri...
by Peter Foley
Fri Aug 11, 2017 1:42 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 8-12-2017 + Summary
Replies: 19
Views: 1769

Re: Minnesota BH Quarterly Meeting August 12, 2017

The meeting is tomorrow at the Southdale Library, 7001 York Ave. South. We will try to start promptly. I am listing again the planned breakout sessions and am posing a couple questions to those reading this post: Posting your answer here on the forum will be helpful in terms of planning future meeti...
by Peter Foley
Thu Aug 10, 2017 9:02 am
Forum: Investing - Theory, News & General
Topic: Good article about having the "RIGHT" asset allocation
Replies: 27
Views: 3426

Re: Good article about having the "RIGHT" asset allocation

An interesting snip-it from the article that is very timely today. market timing becomes progressively unpopular during bull markets. That is because, during multiyear uptrends, buying and holding will inevitably beat almost all attempts to time the market. One by one, previous believers in market t...
by Peter Foley
Wed Aug 09, 2017 12:55 pm
Forum: Investing - Theory, News & General
Topic: Can real estate investing (actual properties) be relatively "hands off"?
Replies: 50
Views: 5604

Re: Can real estate investing (actual properties) be relatively "hands off"?

Something you may not have thought of . . . . There are businesses/individuals who invest in stand alone post office facilities. (I did this for 30 years.) The buildings are leased by the US Postal Service - typically on a five year or ten year basis. The USPS pays market rates. There is some requir...
by Peter Foley
Wed Aug 09, 2017 9:14 am
Forum: Investing - Help with Personal Investments
Topic: What is an appropriate lower risk asset allocation once one has "won the game"
Replies: 50
Views: 5905

Re: What is an appropriate lower risk asset allocation once one has "won the game"

You have received a lot of well thought out, although varied, responses. Returning to the original question . . . I particularly like the response that characterizes your situation as being a return to the accumulation phase. With that in mind, and thinking of the need to add some more inflation pro...
by Peter Foley
Mon Aug 07, 2017 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawal strategies in retirement
Replies: 4
Views: 907

Re: Withdrawal strategies in retirement

peigner, I hate to be vague, but I think Schwab will. When I retired I sat down with the Schwab financial planner assigned to me and we went through a couple hours analyses of Roth conversions. We looked at both accounts held at Schwab and elsewhere. It was pretty thorough. So if they can provide an...
by Peter Foley
Mon Aug 07, 2017 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion - Math check
Replies: 22
Views: 1360

Re: Roth Conversion - Math check

OP wrote: The sum of my T-IRA contributions is $60,000 and the current value of the account is $95,000. It is my understanding that if I were to convert this to a Roth IRA, I would owe taxes on the $35,000, and this would be taxed as ordinary income. Maybe I am misreading this. If the traditional IR...
by Peter Foley
Sun Aug 06, 2017 8:28 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 8-12-2017 + Summary
Replies: 19
Views: 1769

Re: Minnesota BH Quarterly Meeting August 12, 2017

We are about a week out from our quarterly meeting. Does anyone need more details regarding the breakout topics? I'm moderating the one on risk tolerance and asset allocation. Have you thought about the potential limitations of risk tolerance questionnaires? How do you feel about risk when the marke...
by Peter Foley
Sat Aug 05, 2017 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio question, my first forum post
Replies: 5
Views: 476

Re: Portfolio question, my first forum post

sunshine25 wrote: My thoughts are use a single fund like the Life Strategy Funds or Balanced Index Fund Admiral, or create my own portfolio with a few funds like Total Bond Market Index Fund, 500 Index, small cap index, international growth or index, etc. Overall you are not in a bad mix of funds cu...
by Peter Foley
Sat Aug 05, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Why no federal income tax obligation?
Replies: 31
Views: 2744

Re: Why no federal income tax obligation?

A simple, but not exact answer regarding realizing more in taxable gains tax free is that the top of the 15% tax bracket is $75,900 in taxable income for 2017. So if your qualified dividends remained constant AND if everything else was a wash (income less deductions and exemptions) it would be 75,90...
by Peter Foley
Sat Aug 05, 2017 7:31 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation for investments with known use date
Replies: 21
Views: 1672

Re: Asset allocation for investments with known use date

Reading the black line from right to left (in reverse) seems about right to me as a glide path in terms of saving for a college education. I've not thought of the other two purchases in terms of a glide path because the investment time horizon is too short.
by Peter Foley
Sat Aug 05, 2017 7:16 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 8-12-2017 + Summary
Replies: 19
Views: 1769

Re: MInnesota BH Quarterly Meeting August 12, 2017

It is especially important to have an Investment Policy Statement in writing. It helps check one's emotions. Two thoughts come to mind - "Oh dear I am missing out on this rally and I need to buy more." and " This must be a bubble, I need to get out!" A quote from Professor Terrance Odean who studies...
by Peter Foley
Sat Aug 05, 2017 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Using a donor-advised fund to minimize taxes
Replies: 23
Views: 1339

Re: Using a donor-advised fund to minimize taxes

We use a Schwab DAF, again, because of lower minimums. The way you stated your strategy, perhaps not the way you will actually use it, was slightly flawed. You would want to invest funds in your taxable account and buy new shares and donate appreciated shares of whatever you hold with a significant ...
by Peter Foley
Sat Aug 05, 2017 3:00 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation for investments with known use date
Replies: 21
Views: 1672

Re: Asset allocation for investments with known use date

Interesting chart. I'm not sure the chart is entirely applicable for the purchases with known dates you listed. I would use CD's of varying maturities for a house down payment. A college education is an expense that stretches over a number of years. I would want a minimum of 2 years in something rel...
by Peter Foley
Sat Aug 05, 2017 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Why no federal income tax obligation?
Replies: 31
Views: 2744

Re: Why no federal income tax obligation?

Print out your 2 year comparison/summary in Turbo tax. That will should you the distinct sources of your income. I suspect the reason is the zero tax on qualified dividends and long term capital gains as has been mentioned.
by Peter Foley
Fri Aug 04, 2017 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing Advice
Replies: 3
Views: 371

Re: Rebalancing Advice

I would favor rebalancing from equities to bonds in a tax deferred account, not in a Roth. As mentioned, in the 15% tax bracket it could be done in taxable as well.
by Peter Foley
Fri Aug 04, 2017 11:21 am
Forum: Investing - Help with Personal Investments
Topic: 3 year age difference between spouse & conversion
Replies: 17
Views: 1088

Re: 3 year age difference between spouse & conversion

The Wizard wrote: Higher age spouse hits age 67 and retires. Joint income falls by 50% with just one worker. So older spouse converts $50k per year for three years to bring taxable income back up. Older spouse then starts SS and RMDs at 70 with no more Roth conversions. That same year, younger spous...
by Peter Foley
Thu Aug 03, 2017 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: 85/15 too aggressive at age 35?
Replies: 89
Views: 7865

Re: 85/15 too aggressive at age 35?

If you have the ability and willingness to take risk you are fine. I was at 70/30 until close to age 60. Personally, I would dial it back a bit. Benjamin Graham recommended 75% as the top limit and 25% as the bottom limit for stocks.

At a minimum, reassess when you are 50 years old.
by Peter Foley
Thu Aug 03, 2017 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Fun and interesting set of Calculators
Replies: 3
Views: 818

Re: Fun and interesting set of Calculators

I looked a a few of the retirement calculators on the site. They are relatively straightforward. These are not complex calculators with many different inputs. Those I looked at are not as sophisticated as the often cited Firecalc.
by Peter Foley
Thu Aug 03, 2017 11:36 am
Forum: Personal Consumer Issues
Topic: Best "investment tip" I have gotten from Bogleheads
Replies: 44
Views: 6045

Re: Best "investment tip" I have gotten from Bogleheads

Insight into the topic of risk (need, willingness, and ability) and its role in asset allocation.
by Peter Foley
Wed Aug 02, 2017 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Commercial property as part of your portfolio anyone?
Replies: 4
Views: 452

Re: Commercial property as part of your portfolio anyone?

We held a commercial real estate property for almost 30 years. We sold it about a year ago. Overall it was a very good investment. It was a small town post office rented to the US Postal Service during the entire period. Had I not done a fair amount of the routine maintenance, interior and exterior ...
by Peter Foley
Wed Aug 02, 2017 7:00 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 8-12-2017 + Summary
Replies: 19
Views: 1769

Re: MInnesota BH Quarterly Meeting August 12, 2017

There were three Minnesota tax law changes in the 2017 Special Session, House File 1 that may affect Bogleheads - this is one of the topics covered in the August meeting: 1. Estate tax reform 2. State income tax deductions for contributions to 529 plans 3. Some limits on the taxation of Social Secur...
by Peter Foley
Wed Aug 02, 2017 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: A poll: How much money do you want to retire?
Replies: 270
Views: 21245

Re: A poll: How much money do you need to retire?

When I was in my early 50's I figured about 1.5M. I'm 66. I figured correctly.
by Peter Foley
Mon Jul 31, 2017 10:55 pm
Forum: Investing - Help with Personal Investments
Topic: Plan for enough assets to get to age 70 if stocks plummet?
Replies: 14
Views: 1879

Re: Plan for enough assets to get to age 70 if stocks plummet?

Something like a Ally bank account that pays 1% interest. One could also use 1 year and 2 year CD's.

If your cash needs are $10,000/year that is less important, of course, than if they are $50,000/year.
by Peter Foley
Mon Jul 31, 2017 7:31 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 8-12-2017 + Summary
Replies: 19
Views: 1769

Re: Minnesota BH Quarterly Meeting August 12, 2017

An additional note - two of the individuals leading discussion topics indicated that it would be a helpful (not necessary) to bring a laptop or an I-pad.

The session regarding monitoring and rebalancing will focus, in part, on some of the on-line tools available to help with those efforts.
by Peter Foley
Mon Jul 31, 2017 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Plan for enough assets to get to age 70 if stocks plummet?
Replies: 14
Views: 1879

Re: Plan for enough assets to get to age 70 if stocks plummet?

I too agree with Jane Bryant Quinn's approach to cash management and liquidity. We held a little over 2 years cash when we retired 5 years ago. Because my wife did some consulting on the side the cash lasted us 3 + years. That was enough time to take stock and reassess our asset allocation. If retir...
by Peter Foley
Sun Jul 30, 2017 11:09 pm
Forum: Investing - Theory, News & General
Topic: What am I missing? [Ultra-short bond vs Prime MM]
Replies: 50
Views: 5626

Re: What am I missing?

I don't think you are missing anything. You opted for a safer option for your bond allocation even if it meant giving up some yield. One mantra often stated here is that one should take their risk with the equity portion of their AA. I don't see this as market timing as you moved money from a money ...