Search found 5029 matches

by Peter Foley
Sun May 24, 2020 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with Mother-In-Law
Replies: 31
Views: 3584

Re: What to do with Mother-In-Law

3000 per month is cheap for assisted living. My MIL pays more than twice that in a major metropolitan area.
by Peter Foley
Sun May 24, 2020 7:58 pm
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 37
Views: 1778

Re: Roth + Time vs Pretax + tax

Overall asset placement obviously plays a role. I personally don't view this as a time issue except in the case of Roth conversions. Only convert money you don't plan to spend in the near future. Important to me is to have a mix of stocks and bonds and to place the asset with the best potential for ...
by Peter Foley
Wed May 20, 2020 10:49 pm
Forum: Personal Consumer Issues
Topic: Frequency of bike overhaul or tune up
Replies: 29
Views: 1666

Re: Frequency of bike overhaul or tune up

I volunteer with a couple organizations that fix bikes to be given away. That amounts to 8 years experience as a bike mechanic working primarily on older bikes. The most basic things are making sure your shifting and braking work smoothly and the chain is kept relatively clean and lubed. If all of t...
by Peter Foley
Sun May 17, 2020 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: self-employed get UI ?
Replies: 9
Views: 602

Re: self-employed get UI ?

I'm a former state UI Tax director so here is a little background. Employers report wages quarterly and unemployment claims are based on wages in completed quarters. So states already have the data to determine the weekly benefit amount when someone becomes employed. In almost all states this is an ...
by Peter Foley
Sun May 17, 2020 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: self-employed get UI ?
Replies: 9
Views: 602

Re: self-employed get UI ?

The amount the OP is getting may not be the final amount. Some states are making partial payments quickly because it takes time to determine the actual payments. If you want the official answer you can look it up in a Unemployment Insurance Program Letter (UIPL). This is the official guidance states...
by Peter Foley
Thu May 14, 2020 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Question
Replies: 6
Views: 636

Re: Estate Tax Question

Just to clarify, in 2020 the Minnesota estate tax exemption increased to $3,000,000 per individual . Minnesota does not have a portability provision in their estate tax law so this makes it appear as if it is $3,000,000 per couple. Those are not quite the same thing. If, for example, the spouse who ...
by Peter Foley
Fri Apr 24, 2020 10:39 pm
Forum: Investing - Theory, News & General
Topic: books on behavioral finance/economics
Replies: 7
Views: 442

Re: books on behavioral finance/economics

The most readable book I've read is "Why Smart People Make Big Money Mistakes" by Belsky and Gilovich.

The chapter on "anchoring" and "confirmation bias" is one that I often refer to in conversations with others interested in the topic of behavioral finance.
by Peter Foley
Sun Apr 19, 2020 2:18 pm
Forum: Personal Investments
Topic: Our Retirement Plan vs Financial Advisor Plan - Thoughts?
Replies: 60
Views: 4226

Re: Our Retirement Plan vs Financial Advisor Plan - Thoughts?

Both portfolios are more complex than need be for adequate diversification. You have many too many small allocations in yours. You don't have to hold international, large cap, and mid cap in both plans, for example. Holding Wellington doesn't make any sense in the adviser's recommendation when you c...
by Peter Foley
Wed Apr 15, 2020 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Tax planning
Replies: 38
Views: 2511

Re: Retirement Tax planning

The most straightforward thing you can do is to make qualified charitable distributions from your IRA. Note: it must be from an IRA, not a 401k, or 403b, or 457 account and it must go directly to a charity, not to a donor advised fund.
by Peter Foley
Wed Apr 15, 2020 9:57 am
Forum: Personal Consumer Issues
Topic: Learning 2 foreign languages simultaneously: bad idea for 5 year old?
Replies: 28
Views: 1408

Re: Learning 2 foreign languages simultaneously: bad idea for 5 year old?

Regarding the comments about not retaining the new language if not practiced. There was a very interesting Canadian study (McGill University) of children adopted from China. Children who were adopted very, very young, showed their brain mapping processed Chinese as noise. Those adopted at a later ag...
by Peter Foley
Tue Apr 14, 2020 8:12 pm
Forum: Personal Consumer Issues
Topic: Learning 2 foreign languages simultaneously: bad idea for 5 year old?
Replies: 28
Views: 1408

Re: Learning 2 foreign languages simultaneously: bad idea for 5 year old?

There is no doubt a fair amount of academic research about this. What I have heard is that if two languages are spoken children tend to sort them out about the time they enter school. For a child to sort out three languages he/she would need constant exposure to all three. I'm a former Spanish teach...
by Peter Foley
Tue Apr 14, 2020 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: When Does a Trust Become Worth It?
Replies: 71
Views: 6035

Re: When Does a Trust Become Worth It?

Celia and tomato tomahto covered most of my major concerns. One additional concern is when one owns real estate in multiple states. This raises the possibility of multiple probates. Many have mentioned the value of the estate as a factor. I would interested in opinions regarding the types of assets ...
by Peter Foley
Thu Apr 02, 2020 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Proposed wiki page on Stretch IRA
Replies: 26
Views: 1579

Re: Proposed wiki page on Stretch IRA

Celia, I respectfully disagree. The use of the term is common parlance, not legal. While you and I seem to be in agreement that it was not a good idea to begin with and could distort spendable dollars inherited by some co-beneficiaries, it did exist for some beneficiaries and continues to exist for ...
by Peter Foley
Wed Apr 01, 2020 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Proposed wiki page on Stretch IRA
Replies: 26
Views: 1579

Re: Proposed wiki page on Stretch IRA

I would suggest a short update making mention of the loss of the stretch provisions for many beneficiaries and the 10 year rule effective January 1, 2020. Provide a link to the SECURE Act and a note that the IRS has not published rules with respect to the SECURE Act.

Revisit in 6 months.
by Peter Foley
Wed Apr 01, 2020 11:22 am
Forum: Investing - Theory, News & General
Topic: Asset allocation strategies for accumulators
Replies: 36
Views: 2160

Re: Asset allocation strategies for accumulators

Triple Digit Golfer wrote in response to my post: Peter Foley wrote: ↑Mon Mar 30, 2020 11:03 pm I roughly did B but added the rising equity glide path option until about 4 years after retiring. At that point constant. So about 70/30 until 2 years before retirement, then down to 45/55 for about 4-6 y...
by Peter Foley
Mon Mar 30, 2020 11:03 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation strategies for accumulators
Replies: 36
Views: 2160

Re: Asset allocation strategies for accumulators

I roughly did B but added the rising equity glide path option until about 4 years after retiring. At that point constant. So about 70/30 until 2 years before retirement, then down to 45/55 for about 4-6 years then a slow rise to 55/45. If you use the plus or minus 5% approach to rebalancing, you rea...
by Peter Foley
Mon Mar 23, 2020 9:00 pm
Forum: Personal Investments
Topic: Alternatives to financial advisor and general investment advice
Replies: 16
Views: 1013

Re: Alternatives to financial advisor and general investment advice

A follow up to Sandtrap's advice and that of jjface: investing doesn't have to be hard. Read up just a little on the Wiki about the 3 fund portfolio, and as an alternative, Target Retirement Funds. Both options are very simple. Before investing, however, also try to get a read on your ability to tak...
by Peter Foley
Fri Mar 20, 2020 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Father in law died- things to do
Replies: 30
Views: 3590

Re: Father in law died- things to do

A very simple thing. Get multiple copies of the death certificate. You may need them to make changes in accounts.

You will want to look at existing accounts and update beneficiaries.

If the cash is available to do so, I would pay off the car loan. Do maintain an emergency fund however.
by Peter Foley
Fri Mar 20, 2020 7:37 pm
Forum: Personal Investments
Topic: Does loss harvesting make sense for me in my situation?
Replies: 10
Views: 660

Re: Does loss harvesting make sense for me in my situation?

I agree. It makes sense to tax loss harvest as you proposed.
by Peter Foley
Thu Mar 12, 2020 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion planning in a bear market
Replies: 63
Views: 4302

Re: Roth conversion planning in a bear market

I've taken the general approach of converting early in the year. It is always advantageous to convert when the market is down because you can convert a larger percentage of tax deferred within a given tax rate. But there is an aspect of market timing in delaying - quite frankly a strategy that has b...
by Peter Foley
Wed Feb 05, 2020 8:41 pm
Forum: Personal Investments
Topic: SIMPLE IRA or stay in ridiculous 403(b)
Replies: 10
Views: 658

Re: SIMPLE IRA or stay in ridiculous 403(b)

One way to look at fees is to consider them to be negative compound interest. Run your numbers through a compound interest table for a couple different rates and you can see that the real impact is when you look at 20 years or more of returns. In the overall scheme of things, high fees for a short p...
by Peter Foley
Wed Feb 05, 2020 8:32 pm
Forum: Personal Investments
Topic: Retirement Planning
Replies: 24
Views: 3081

Re: Retirement Planning

It can be as simple as the OP proposes. That does not mean it should be. I would have 2-3 years of cash in a high yielding MM or in CD's to protect against a poor sequence of returns. That is not a lot of additional complication for a modest amount of insurance.
by Peter Foley
Wed Feb 05, 2020 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Couples w/ kids: What is/was the most expensive time period of your life?
Replies: 145
Views: 11984

Re: Couples w/ kids: What is/was the most expensive time period of your life?

For our children it was definitely the college years. (years 2000 - 2006). We have been helping our children with their day care expenses. Our day care expenses in the early 1980's took a much smaller bite out of our two income family than our grandchildren's childcare has taken from our children (2...
by Peter Foley
Mon Feb 03, 2020 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: who do you bank with and why?
Replies: 97
Views: 6932

Re: who do you bank with and why?

We use a local bank for basic checking and savings but keep relatively low balances there because they pay very little in interest. We use Schwab bank for our electronic transactions. They have a no fee bank card and can move money easily between a money market fund paying competitive rates in one's...
by Peter Foley
Mon Feb 03, 2020 8:41 pm
Forum: Investing - Theory, News & General
Topic: Maintaining Asset Allocation Between Taxable and Retirement Accounts
Replies: 6
Views: 527

Re: Maintaining Asset Allocation Between Taxable and Retirement Accounts

Double Dog wrote: Is this solution glaringly obvious, and I'm just too dense to have realized it before? And if you do it this way, when you calculate your actual current AA, do you consider the fact that a dollar in a taxable account is worth more than a dollar in a tax-deferred account? I track my...
by Peter Foley
Fri Jan 31, 2020 8:20 pm
Forum: Personal Investments
Topic: Bond fund choices in 457 plan
Replies: 13
Views: 481

Re: Bond fund choices in 457 plan

I used stable value funds almost exclusively in my governmental 457b. My thought was that as long as the stable value fund kept up with inflation it offered reasonable balance for my slightly aggressive 70/30 asset allocation.
by Peter Foley
Fri Jan 31, 2020 8:15 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 14921

Re: The Demise of the 4 Percent Rule? -- Wade Pfau

So many things have changed since 1900 (two world wars and medical advancements come to mind) that I not sure data going back that far is meaningful to investment decisions made today.
by Peter Foley
Mon Jan 27, 2020 10:01 pm
Forum: Personal Investments
Topic: Time of the day to buy vanguard/VTSAX
Replies: 25
Views: 2409

Re: Time of the day to buy vanguard/VTSAX

Very basic: if you are buying a mutual fund you get the end of the day price. Most index mutual funds have an ETF version whose price fluctuates throughout the day.

Yes if you place an order for a mutual late in the day after the market closes you will get the next day's closing price.
by Peter Foley
Sun Jan 26, 2020 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: TIRA => ROTH Conversion Strategies and SS Taxes
Replies: 81
Views: 3759

Re: TIRA => ROTH Conversion Strategies and SS Taxes

buckeye wrote: With so many moving parts (present and future federal and state income taxes, Obamacare investment income surtax, IRMMA cliffs, uncertainty of longevity, single tax filing status of surviving spouse, taxation of assets inherited by children/grandchildren, etc.), I am unsure we can mak...
by Peter Foley
Sun Jan 26, 2020 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Made Simple for 99 cents
Replies: 2
Views: 576

Re: Social Security Made Simple for 99 cents

Just an FYI. I looked up the book version and saw that it is dated May 2019, so content should be pretty up to date.
by Peter Foley
Sat Jan 25, 2020 10:28 am
Forum: Personal Finance (Not Investing)
Topic: TIRA => ROTH Conversion Strategies and SS Taxes
Replies: 81
Views: 3759

Re: TIRA => ROTH Conversion Strategies and SS Taxes

IRMAA is annual calculation with a two year look back. In our situation I did the math to determine that a large Roth conversion in a single year was to our benefit over the long run. Converting to the third tier of IRMAA in the 24% bracket once was a better solution than a steady stream of second t...
by Peter Foley
Fri Jan 24, 2020 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Prepping for retirement 3 yrs out - what to do?
Replies: 39
Views: 3759

Re: Prepping for retirement 3 yrs out - what to do?

<t>If you are retiring at age 60 you are likely to be able to "manufacture" a few low income years before taking SS benefits. If you are heavily invested in tax deferred accounts this will present an opportunity to do Roth conversions or withdraw from an IRA/401k at a relatively low tax rate. Doing ...
by Peter Foley
Fri Jan 24, 2020 5:42 pm
Forum: Personal Investments
Topic: Managing our taxable account planned for near-term draw-down
Replies: 14
Views: 868

Re: Managing our taxable account planned for near-term draw-down

I am very doubtful than many here would recommend the following: One could purchase long term puts (options) on market indexes. These would basically serve as an insurance policy against a severe downturn in the indexes themselves. I have not researched this approach with respect to current options ...
by Peter Foley
Fri Jan 24, 2020 5:06 pm
Forum: Personal Investments
Topic: How do you deal with taxes?
Replies: 40
Views: 3948

Re: How do you deal with taxes?

I project my tax obligation a year in advance based on Turbo Tax's 2 year summary plus my financial plan for the year. I then adjust my withholding and designate specific amounts of federal and state tax withholding when doing Roth conversions or IRA withdrawals.
by Peter Foley
Fri Jan 24, 2020 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Prepping for retirement 3 yrs out - what to do?
Replies: 39
Views: 3759

Re: Prepping for retirement 3 yrs out - what to do?

Here is a thread I authored a few years ago. I summarized the comments at the end. Retirement - Ten Key Years. There were lots of insightful comments posted in the thread. I have a word doc summary that I can post but it is fairly long. (5-6 pages). https://www.bogleheads.org/forum/viewtopic.php?f=2...
by Peter Foley
Wed Jan 22, 2020 11:57 pm
Forum: US Chapters
Topic: Sad news: LadyGeek's husband has passed
Replies: 352
Views: 26552

Re: Sad news: LadyGeek's husband has passed

I am sorry for your loss. My sincere condolences. With your post you helped others in your time of need. That shows a lot of thought and character.
by Peter Foley
Sun Jan 19, 2020 11:44 am
Forum: Personal Consumer Issues
Topic: Spain in July with kids
Replies: 49
Views: 3502

Re: Spain in July with kids

Following up on questions posed by OP. For simplicity I would only have lodging in Madrid and Barcelona. Three days in Madrid itself. With kids, spend some time in Retiro Park. One can easily spend half a day there. In addition, two separate day trips from Madrid. The Avila Segovia tour I mentioned ...
by Peter Foley
Sun Jan 19, 2020 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Finance Books for Managing Retirement Portfolio
Replies: 8
Views: 1151

Re: Finance Books for Managing Retirement Portfolio

Admiral brings up a good point. There are on line resources that can be helpful.

Firecalc can be helpful with withdrawal strategies, the Retiree Portfolio Model and I-orp for Roth conversions and opensocialsecurity.com for when to take SS benefits.
by Peter Foley
Sat Jan 18, 2020 11:27 pm
Forum: Personal Investments
Topic: Looking for input/will this work?
Replies: 27
Views: 1709

Re: Looking for input/will this work?

Just a suggestion for reading with respect to your plan. There is a concept call a "rising equity glide path" in retirement. Wade Pfau is one of the authors. It suggests being a little more conservative in terms of asset allocation around the time you retire. This approach helps guard against a poor...
by Peter Foley
Sat Jan 18, 2020 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Finance Books for Managing Retirement Portfolio
Replies: 8
Views: 1151

Re: Finance Books for Managing Retirement Portfolio

I've read and liked both Quinn's and Swedroe's books. I've also participated in discussion groups where both were discussed. My personal opinion is that Quinn's book is true to its title in that it is more directed at individuals who don't have a lot of financial flexibility in retirement. The Swedr...
by Peter Foley
Fri Jan 17, 2020 8:48 pm
Forum: Personal Consumer Issues
Topic: Spain in July with kids
Replies: 49
Views: 3502

Re: Spain in July with kids

I did study abroad in Madrid as an undergrad and in Valencia and Madrid as a grad student. I also taught in Madrid. I know Spain pretty well and have even served as a tour guide for study abroad students and friends. I was also a chaperone on a couple of my daughter's students' trips to Spain. (I wa...
by Peter Foley
Fri Jan 17, 2020 2:45 pm
Forum: Personal Investments
Topic: Inherited money. Invest now or max contribute in 403b and 457 over 2 years?
Replies: 34
Views: 1696

Re: Inherited money. Invest now or max contribute in 403b and 457 over 2 years?

The thrust of my earlier post was that having some balance between tax deferred and Roth was advisable. Using some contributions to tax deferred to avoid a much higher marginal tax rate makes some sense for many people. In your case the difference between the 22% bracket and the 24% bracket for a re...
by Peter Foley
Thu Jan 16, 2020 4:56 pm
Forum: Personal Investments
Topic: Inherited money. Invest now or max contribute in 403b and 457 over 2 years?
Replies: 34
Views: 1696

Re: Inherited money. Invest now or max contribute in 403b and 457 over 2 years?

Homestretch wrote: With a marginal tax rate now and (projected) in retirement of 22%, consider Roth contributions wherever possible. Tax rates sunset in 2025, so the 22% tax bracket is scheduled to revert to 25% starting in 2026. You and spouse can each contribute $6k for each of tax years 2019 and ...
by Peter Foley
Thu Jan 16, 2020 10:08 am
Forum: Personal Finance (Not Investing)
Topic: "Life Between 65 and Death"
Replies: 17
Views: 2728

Re: "Life Between 65 and Death"

While interesting the first few points are mostly about spending more money on oneself. It make the whole article seem a little too much like it is all about me. All told, I probably agree with about 3/4 of the points made.
by Peter Foley
Wed Jan 15, 2020 10:39 am
Forum: Investing - Theory, News & General
Topic: Better to Hold Equities in Taxable Accounts?
Replies: 2
Views: 360

Re: Better to Hold Equities in Taxable Accounts?

I would agree that your thinking is correct. After years of Roth conversions we are moving money from tax deferred account to taxable - in part to replenish the taxable account that was used to pay the taxes on the Roth conversions. Once the funds are in taxable accounts I will rebalance and put som...
by Peter Foley
Fri Jan 10, 2020 8:11 pm
Forum: US Chapters
Topic: Minnesota BH Main Meeting : Saturday January 11, 2020
Replies: 5
Views: 954

Re: Minnesota BH Main Meeting : Saturday January 11, 2020

Just a note. Please print out your agendas in advance or bring an electronic device. As much as possible we are trying to go paperless. The moderator for "Safe Distributions in Retirement" has a complicated topic ranging from withdrawal methods such as the variable percentage withdrawal, to cash flo...
by Peter Foley
Wed Jan 08, 2020 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: [Estate planning] Simplicity: Inherit outright vs trusts for kids?
Replies: 28
Views: 3319

Re: [Estate planning] Simplicity: Inherit outright vs trusts for kids?

I would think that factors to be considered would be what assets are included in the trust and what the relative values are of those assets? For example, if a couple had most of their net worth in IRAs, then one option might be preferable to another. Another example would be a high net worth couple ...
by Peter Foley
Tue Jan 07, 2020 1:55 pm
Forum: Personal Investments
Topic: retirement investing question
Replies: 19
Views: 1851

Re: retirement investing question

dflaher wrote: Also be aware that, since the $60K is in an IRA, you will pay anywhere from $6K to $13K to re-allocate it in a taxable fund. A slow withdrawal of these funds might not result in much going to taxes. One objective of the OP's retirement investing would be to have more stock mutual fund...
by Peter Foley
Mon Jan 06, 2020 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: is QCD like a DAF (but better) ?
Replies: 53
Views: 2509

Re: is QCD like a DAF (but better) ?

Thanks Artsdoctor One Ping made this comment in a thread about the SECURE Act. One problem in the Kitces article (well, at least in the comments section) is that the author seems to agree with a commenters assumption that QCD's can be reported as a charitable donation and included as an itemized ded...
by Peter Foley
Mon Jan 06, 2020 5:33 pm
Forum: Non-US Investing
Topic: How tax efficient are your investments?
Replies: 8
Views: 1027

Re: How tax efficient are your investments?

OP You have to think long term with respect to your investments and the placement of those investments. Holding low cost index funds in a taxable account is tax efficient. But do you have that balance because you failed to fund an IRA and paid a lot in taxes? Holding mutual funds in a Roth is tax ef...