Search found 4018 matches

by Peter Foley
Tue Oct 17, 2017 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: how long did it take to get used to retirement
Replies: 75
Views: 4312

Re: how long did it take to get used to retirement

It took me about a year to stop thinking about work. We had a couple longer trips planned for the first year and those changes in venue helped (Alaska and France). Our first grandchild was born three months after we retired and our second was born seven months later. Our two daughters both having ch...
by Peter Foley
Mon Oct 16, 2017 8:07 pm
Forum: Investing - Theory, News & General
Topic: How does everyone keep track of your portfolio?
Replies: 102
Views: 5121

Re: How does everyone keep track of your portfolio?

I use an excel spreadsheet with an array recommended by a professional planner who did a one time plan for my wife and me about 10 years ago. We have numerous accounts but very few holdings/asset classes in any account. Accounts are his tax deferred, her tax deferred, his Roth, her Roth and taxable....
by Peter Foley
Sun Oct 15, 2017 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Simplifying portfolio
Replies: 41
Views: 3060

Re: Simplifying portfolio

In addition to the good financial advice you have received from retirejg, you need some estate planning advice. Your assets are at a level where a good attorney could offer advice about beneficiaries, trusts, etc. This is especially important when there is a blended household and there are children ...
by Peter Foley
Sat Oct 14, 2017 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question regarding estimated taxes
Replies: 6
Views: 396

Re: Tax question regarding estimated taxes

For those of you that use Turbo tax - one of the forms you can print out is a two year summary. Just set up a spread sheet using that output and add in the current year's numbers for a good estimate. My preference has always been to increase paycheck withholding to cover any additional income from w...
by Peter Foley
Sat Oct 14, 2017 10:30 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau’s new book: How Much Can I Spend in Retirement?
Replies: 17
Views: 3775

Re: Wade Pfau’s new book: How Much Can I Spend in Retirement?

While I have not read the book I second Mel's endorsement. Many of his articles are informative and thought provoking at the same time.
by Peter Foley
Fri Oct 13, 2017 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Father passed away - what to do with fund accounts
Replies: 7
Views: 1111

Re: Father passed away - what to do with fund accounts

Sorry about your loss. Could you provide a little more detail? (CAsage asked these questions as well.) Are these funds in retirement accounts (IRA's or 401k's) or are they in a regular brokerage (taxable account)? If in taxable, were these accounts only in your father's name or were they joint accou...
by Peter Foley
Fri Oct 13, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Itemized Tax Deductions
Replies: 10
Views: 554

Re: Itemized Tax Deductions

If you meet the criteria, some self employed persons can deduct the cost of health insurance. Have you looked into that?
by Peter Foley
Thu Oct 12, 2017 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: annuity beneficiary
Replies: 5
Views: 282

Re: annuity beneficiary

First off - do you know if it is a "qualified" annuity, i.e., an IRA being paid out as an annuity? If that is the case, and, from your description it sounds like it is, all the payments you receive will be taxable. You will need to decide whether to stretch out the payments or take it a a lump sum. ...
by Peter Foley
Wed Oct 11, 2017 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Am i being stubborn not using my voya stable principal account?
Replies: 4
Views: 511

Re: Am i being stubborn not using my voya stable principal account?

A stable value fund, which it appears that the Voya "stable principal" fund is, can be a good alternative or compliment to a bond fund. I would look at the historic returns on the fund and the fees. Note - it is unusual to not have restriction on withdrawals to stable value funds. That is one aspect...
by Peter Foley
Mon Oct 09, 2017 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice after windfall
Replies: 7
Views: 1056

Re: Portfolio advice after windfall

Treeboi wrote: I added my reaction in red. My plan is to change my TSP account into my defacto bond bucket using the G and F funds. Yes. My Roth would not change, although the percentages allocated to each of the 2 funds may change as I rebalance. Yes My taxable account will grow immensely and i wou...
by Peter Foley
Fri Oct 06, 2017 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio balancing - what is your best move?
Replies: 11
Views: 1286

Re: Portfolio balancing - what is your best move?

In my opinion the most significant change you could make is the one you suggest - swap target retirement for a bond fund. This is a simplification and gives you a more mainstream AA.
by Peter Foley
Wed Oct 04, 2017 11:09 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement advice
Replies: 1
Views: 426

Re: Retirement advice

I think the plan is doable. You need $84,000/year and your two pensions equal $70,000. The $14,000 per year you need for the first few years is less than a 2% withdrawal rate. When your spouse begins taking SS benefits your withdrawal rate is negligible. In addition, if your $84,000 is your gross in...
by Peter Foley
Wed Oct 04, 2017 7:32 pm
Forum: Investing - Theory, News & General
Topic: What counts in calculating portfolio withdrawals?
Replies: 10
Views: 599

Re: What counts in calculating portfolio withdrawals?

So is taking interest from a CD not a withdrawal but taking interest from a bond is?

Any distinction between taking interest from a bond and taking interest from a bond fund?
by Peter Foley
Tue Oct 03, 2017 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Quick Tax Question
Replies: 10
Views: 835

Re: Quick Tax Question

Note that Gross Annual Income is not an often used term.

In your particular case it would likely include earned income from wages and any interest or short term capital gains.

For a retiree that term might include IRA/401k/403b/457 withdrawals and Roth conversions.
by Peter Foley
Sat Sep 30, 2017 4:09 pm
Forum: Investing - Theory, News & General
Topic: Is a Roth conversion a good idea if you are in the 15% tax bracket?
Replies: 39
Views: 3723

Re: Is a Roth conversion a good idea if you are in the 15% tax bracket?

Woodshark wrote: Upon reading the advice given so far (for which I am greatly appreciative), it brings up another question, or I guess I could rephrase my initial question. In the long term, which would be the better choice. a. Use the tax free space within the 15% tax bracket to do tax gain harvest...
by Peter Foley
Sat Sep 30, 2017 12:39 pm
Forum: Investing - Theory, News & General
Topic: Is a Roth conversion a good idea if you are in the 15% tax bracket?
Replies: 39
Views: 3723

Re: Is a Roth conversion a good idea if you are in the 15% tax bracket?

Two long term posters whose opinions I respect beat me to the punch. Like retiredjg, I consider conversion to the top of the 15% bracket a no brainer for most early retirees. Part of the reason is Doc's point, once you start receiving SS Benefits marginal tax rates can increase significantly. Tax ga...
by Peter Foley
Thu Sep 28, 2017 8:16 pm
Forum: Investing - Theory, News & General
Topic: Selling Taxable to Top of Bracket: What does it mean?
Replies: 33
Views: 3700

Re: Selling Taxable to Top of Bracket: What does it mean?

David But if your taxable income is $37,950 including $10,000 in qualified dividends, your tax is $3726. Reducing your income by $1000 still saves you $150 in tax. But now, increasing your income by $1000 causes $1000 of ordinary income to be taxed at 15%, and also pushes $1000 of qualified dividend...
by Peter Foley
Wed Sep 27, 2017 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance proceeds and taxes
Replies: 4
Views: 332

Re: Long Term Care Insurance proceeds and taxes

Thanks for the quick responses. Reading between the lines would I be correct in saying that long term care reimbursements are treated in the same manner as insurance reimbursements for other medical costs. For example, you have a $1000 deductible policy and you have an operation that costs $10,000. ...
by Peter Foley
Wed Sep 27, 2017 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance proceeds and taxes
Replies: 4
Views: 332

Long Term Care Insurance proceeds and taxes

I've looked for information on the IRS web site and found nothing specific so am posing the question here. My mother in law, age 96, is in an assisted livings facility. Expenses will be about $80,000 for this year and her long term care insurance will pay a little less than half that, $36,000. Note ...
by Peter Foley
Tue Sep 26, 2017 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: Maxed out Roths, 401k options?
Replies: 7
Views: 1022

Re: Maxed out Roths, 401k options?

Looking at this from a tax perspective. Income $115,000 - Exemptions $4050 X 4 = $8,200 - Standard deduction = $12,700 Approximate taxable income = $94,100 This put you about $18,200 into the 25% tax bracket. Therefore deferring $13,000 in a 401k will save you about $3,250 in Federal taxes. If you h...
by Peter Foley
Mon Sep 25, 2017 11:24 pm
Forum: Investing - Theory, News & General
Topic: Selling Taxable to Top of Bracket: What does it mean?
Replies: 33
Views: 3700

Re: Selling Taxable to Top of Bracket: What does it mean?

Longrunner - As I understand your post you have a few things at play when it comes to calculating your taxes. There are income levels below which SS Benefits are not taxable: Modified Adjusted Gross Income of less than $25,000. There are income levels below which qualified dividends and long term ca...
by Peter Foley
Mon Sep 25, 2017 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Calculators
Replies: 18
Views: 2425

Re: Retirement Calculators

In the withdrawal plan spreadsheet that I built I use 4% nominal for a 50/50 portfolio. I use 3% for cost inflation and 2% for SS Benefits increases.

This is probably overly conservative.
by Peter Foley
Mon Sep 25, 2017 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Compare these portfolios
Replies: 5
Views: 657

Re: Compare these portfolios

While there is a lot of duplication/overlap among these holdings and The Vanguard Total Stock Market Admiral Shares, I see no reason to sell them and incur the tax liability. Perhaps consolidate a bit at a time if you can sell them w/o paying long term capital gains. Certainly sell any that you hold...
by Peter Foley
Mon Sep 25, 2017 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation - Nearing Retirement
Replies: 26
Views: 2884

Re: Allocation - Nearing Retirement

I think 60/40 is fine five years from retirement. I would, however, slowly transition to 50/50 by your retirement date. Wade Pfau and Michael Kitces have an article about a "Rising Equity Glide Path" that is worth reading. My basic takeaway from the article is that it is prudent to be a little more ...
by Peter Foley
Mon Sep 25, 2017 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Simplifying portfolio
Replies: 41
Views: 3060

Re: Simplifying portfolio

Another vote for working with Schwab and their adviser with your taxable and IRA accounts. Schwab has a number of low cost broad based funds (primarily index funds) and ETFs. It would not be difficult to come up with a 5 fund portfolio that is well diversified and low cost. My choices would be to st...
by Peter Foley
Sun Sep 24, 2017 11:13 pm
Forum: Forum Issues and Administration
Topic: Home Page Updated
Replies: 82
Views: 5868

Re: Home Page Updated

I too did not find it intuitive to navigate to the correct forum to create a new topic. Also, when you read the FAQ's those are not the instructions given, at least not in detail.
by Peter Foley
Thu Sep 21, 2017 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1716

Re: IRA to Roth conversion now (age 68) or RMD?

I'm reading from IRS Pub 13 of a couple years ago: Chapter 21 Medical Expenses you can include on Schedule A (Form 1040). "Nursing Home. You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution for yourself, spouse, or your dependents....
by Peter Foley
Thu Sep 21, 2017 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1716

Re: IRA to Roth conversion now (age 68) or RMD?

computerdoc One thing to keep in mind in terms of Roth conversions is unknown medical costs. Sorry to bring this up, but we are currently going though this with my mother-in-law. At age 96 she broke her hip, and has suffered a fairly rapid mental decline ever since. She has been in assisted living s...
by Peter Foley
Thu Sep 21, 2017 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Letter For Survivor(s) / Executors
Replies: 10
Views: 1274

Re: Letter For Survivor(s) / Executors

Wife would not disclaim SS survivor benefits, but might disclaim an account for which she is named as the primary beneficiary and our adult children are named as contingent beneficiaries. For estate planning purposes we have multiple IRAs with spouse being the primary beneficiary on one and our chil...
by Peter Foley
Wed Sep 20, 2017 8:33 pm
Forum: Personal Consumer Issues
Topic: Tulum? [Mexico]
Replies: 10
Views: 1227

Re: Tulum?

Do a tour of the ruins before the tour buses arrive. I'd be inclined to be there when it opens in the morning. We stayed a little north of Tulum (Akumal) and rented a condo on the beach for a couple of days (we were two couples and this was a less expensive and nicer option). Pre AirBnB era.
by Peter Foley
Wed Sep 20, 2017 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Letter For Survivor(s) / Executors
Replies: 10
Views: 1274

Re: Letter For Survivor(s) / Executors

I looked at the list and it is quite inclusive. Here are a few items that I have in my list that are not included here. Specific instructions for my spouse regarding SS survivor benefits. Information for my spouse regarding the possibility of "disclaiming" and the process for doing so. Specific inst...
by Peter Foley
Wed Sep 20, 2017 8:02 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for retirement...help!
Replies: 4
Views: 581

Re: Investing for retirement...help!

While Target Date Funds are a way to go for simplified management, I do not think they are the right strategy for you. Perhaps a LifeStrategy Fund, but I think that is a doubtful approach too. Why? You might ask. Converting your taxable account to one of these options would likely incur a fair amoun...
by Peter Foley
Wed Sep 20, 2017 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1716

Re: IRA to Roth conversion now (age 68) or RMD?

I would do Roth conversion to the top of the 15% bracket at least this year. Probably a good idea until your RMD's start. Your RMD's are not so large that they will present a tax burden. You could also consider converting one or both of your RMD's into a charitable contribution for the year. Unless ...
by Peter Foley
Wed Sep 20, 2017 7:25 pm
Forum: Investing - Theory, News & General
Topic: AA if you were just starting out again
Replies: 49
Views: 3685

Re: AA if you were just starting out again

I think if I were starting over again, adopting index investing over stock picking would be a greater priority than getting my AA right. Especially in one's early years, unless one is too conservative or totally oblivious to risk tolerance, AA is not a critical factor.
by Peter Foley
Wed Sep 20, 2017 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: Stable value fund
Replies: 27
Views: 1968

Re: Stable value fund

I have used a stable value fund for a good portion (more than 50%) of my non equities for years. The fund I have available has almost always had a slightly better return than inflation. That is not great, but it is good enough for me.
by Peter Foley
Mon Sep 18, 2017 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: Please review my early retirement plan
Replies: 13
Views: 1818

Re: Please review my early retirement plan

I agree with delamer that can retire now. To the extent that you can do so, I would try to move some equities from taxable into the Roth account while maintaining your desired AA. It is not worth pay a lot in taxes to do so however. Also, your equities are not broadly diversified enough. You should ...
by Peter Foley
Mon Sep 18, 2017 8:06 pm
Forum: Personal Consumer Issues
Topic: Color printer suggestions: high quality output, low cost of ink
Replies: 22
Views: 1588

Re: Color printer suggestions: high quality output, low cost of ink

I do not know if it is possible to avoid this "feature" with a color printer, but I would try. With my HP Officejet 6600 if one cartridge is out of ink nothing will print. The color cartridges, which we use very rarely, are expensive and a waste of money. I will never buy an HP printer again. Fool m...
by Peter Foley
Mon Sep 18, 2017 4:51 pm
Forum: Personal Consumer Issues
Topic: Memory Foam Mattress Recomendations
Replies: 51
Views: 4425

Re: Memory Foam Mattress Recomendations

My understanding is that your preferred/common sleep position is a critical factor in terms of a mattress. Those who primarily sleep on their backs need one kind of support, those who sleep on their sides and stomach need a different kind of support.
by Peter Foley
Mon Sep 18, 2017 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: A bit of estate planning
Replies: 10
Views: 1126

Re: A bit of estate planning

The approach we took, and I caution readers of this post that it may not be the "right" one for them, was to fund 529 plans and establish smallish custodial accounts. Our reasoning was that we primarily wanted to provide for our grandchildren's education and we are aware that 529 plans cannot be use...
by Peter Foley
Sat Sep 16, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Psychological effects of Early Retirement in peak earning years.
Replies: 63
Views: 7068

Re: Physiological effects of Early Retirement in peak earning years.

sfrph wrote: I know I don't need more savings yet when I think about leaving the job it feels like I'm losing something. So, my question would be has anyone felt these psychological issues retiring during peak earning years? I retired at age 61.5 and my wife at 56. Career wise we both went out on to...
by Peter Foley
Sat Sep 16, 2017 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Best book for planning your retirement?
Replies: 20
Views: 2953

Re: Best book for planning your retirement?

Stay the course wrote: Please correct me Petro, but believe you have an impressive networth. If so, does anyone have retirement books geared to those with 5+ million. There are some separate issues mainly tax smart planning. Stuff like Roth conversions prior to collecting SS, how to minimize RMD, es...
by Peter Foley
Sat Sep 16, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: 401a and 457: Read Guide to Investing - Now what
Replies: 13
Views: 671

Re: 401a and 457: Read Guide to Investing - Now what

Petethecat wrote: Husband has no options for retirement via his employer so we max out my 18k with mine. We have not yet done a backdoor Roth, but are open to it this year, With the account types you mentioned, 401a and 457, it sounds like you work for a public higher education institution. You are ...
by Peter Foley
Sat Sep 16, 2017 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Fun reads on estate planning??
Replies: 4
Views: 591

Re: Fun reads on estate planning??

Beyond the Grave by Jeffery Condon. This is not a "how to" book. It is, more or less, case studies about what can go wrong. It is an easy read and insightful in terms of family dynamics. Ed Slott's Your Complete Retirement Planning Road Map has a couple chapters on estate planning with helpful chec...
by Peter Foley
Fri Sep 15, 2017 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Parents' Financial Situation
Replies: 11
Views: 1471

Re: Advice on Parents' Financial Situation

What kind of business is it?

Sometimes business students from a local college or university are willing to help with a business plan as part of their study. (I'm thinking that someone might be able to take a fresh/new look at the business and suggest some changes to make it more profitable.)
by Peter Foley
Thu Sep 14, 2017 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Mother's Portfolio
Replies: 18
Views: 1425

Re: Help with Mother's Portfolio

suewolf wrote: But my primary question remains: - what's the best way to proceed? one approach is to sell everything then put into a CD ladder. Should I do this for both taxable and tax deferred accounts? should convert to Roths now? Should I have anything (even 20%) in equities as some have suggest...
by Peter Foley
Thu Sep 14, 2017 2:57 pm
Forum: Personal Consumer Issues
Topic: Best Lower Cost USA Cities to Live
Replies: 102
Views: 7498

Re: Best Lower Cost USA Cities to Live

Taking into consideration size and moderate climate, I would second the suggestion of Prescott/Prescott Valley.

So much depends on what your interests are.
by Peter Foley
Thu Sep 14, 2017 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Mother's Portfolio
Replies: 18
Views: 1425

Re: Help with Mother's Portfolio

My thinking is in line with what a few others have said. Consolidate the accounts at Vanguard, sell the house, and put those proceeds in the taxable account. I would aim for an asset allocation of 30% to 40% equities and the balance in bond funds, CD's, cash etc. If at some point your mother ends up...
by Peter Foley
Wed Sep 13, 2017 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3741

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

My investment policy statement dates back to the end of the great recession and indicates 5% bands. I don't slice and dice. I've only really rebalanced a couple times, about 2% to 3% each time. This is not something I have tracked . As I have read, I have come to favor a slightly high equity allocat...
by Peter Foley
Wed Sep 13, 2017 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Investment choice 3 years prior to taking SS
Replies: 9
Views: 1070

Re: Investment choice 3 years prior to taking SS

I confess ignorance on this subject because it does not apply to my wife and me but it is something for you to explore. When the ability to file and suspend SS benefits was modified a couple years, I recall there being exceptions for persons born before a certain date. Do you possibly qualify for th...
by Peter Foley
Mon Sep 11, 2017 11:28 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz: "Who Should Inherit Your IRA?"
Replies: 5
Views: 1429

Re: Christine Benz: "Who Should Inherit Your IRA?"

Good article, although I agree not a lot of depth. A key takeaway for many should be the advice about leaving an IRA to one's child or children. If they are adult children they should have an understanding of what their options would be if they inherit, and the consequences of those options. I've ha...