Search found 3666 matches

by Peter Foley
Wed Feb 22, 2017 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: How do you rank different diversifiers?
Replies: 5
Views: 404

Re: How do you rank different diversifiers?

I also rank diversifiers in a simplistic manner.

Broadest: Stocks versus bonds

Slightly narrower: stocks - domestics versus international, bonds - regular versus tax free, and within regular inflation sensitive versus inflation protected.
by Peter Foley
Wed Feb 22, 2017 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: Recharacterization Roth conversion
Replies: 5
Views: 281

Re: Recharacterization Roth conversion

Are you aware that if you converted a few thousand too much and that bumped your into a higher tax bracket, only the amount over the top of the lower bracket would be taxed at the higher rate? Example: You were in the 15% tax bracket and converted $20,000 from a TIRA to a Roth. The last $3,000 were ...
by Peter Foley
Wed Feb 22, 2017 10:19 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Asset Allocation - Retiring in 5 years
Replies: 3
Views: 412

Re: Advice on Asset Allocation - Retiring in 5 years

Duckie did a very good job so I have little to add. While I own some TIPS, I'm not a big fan either. You might consider adding some I-bonds for basic inflation protection. An alternative would be a good stable value funds in your 403b. I didn't see one, but then again I'm not familiar with all the f...
by Peter Foley
Wed Feb 22, 2017 6:30 pm
Forum: Personal Consumer Issues
Topic: Tell me about Alaska
Replies: 28
Views: 1886

Re: Tell me about Alaska

alaskantraveler wrote: Day 1 Anchorage - hike flat top, visit museum, brewery, Kincaid Park (lots of moose), Coastal Trail, go biking, Day 2 Girdwood - Hike Alyeska mtn, take the tram, hike winter creek trail, hike turnagain arm trail, go biking Day 3 Seward - Visit the wildlife conservation center,...
by Peter Foley
Mon Feb 20, 2017 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: What are the big things to get right?
Replies: 54
Views: 5222

Re: What are the big things to get right?

I wrote the following for my daughters, but quite frankly, if you don't do the first one the rest are irrelevant. Personal Finance and investing basics Broad Principles • Live below your means • Use low cost, mostly indexed mutual funds • Diversify your investments (own both stocks and bonds) • Inve...
by Peter Foley
Mon Feb 20, 2017 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: When do you need an annuity?.
Replies: 25
Views: 2308

Re: When do you need an annuity?.

Dave Jay wrote:

If you have 30X expenses in your retirement portfolio you do not need an annuity.

If you have a marginal portfolio, the mortality credit of an SPIA provides greater payouts for very long longevity and a guaranteed income stream.
"


Toons agreed.

So do I.
by Peter Foley
Mon Feb 20, 2017 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: What is a smart tax strategy?
Replies: 13
Views: 1315

Re: What is a smart tax strategy?

I think you should take a look at a couple of the free on-line retirement calculators. i-orp and the Retiree Model Portfolio are the best I've encountered. I ran various scenarios in both and changed course slightly based on the results I saw with the Retiree Model Portfolio. While I had planned to ...
by Peter Foley
Mon Feb 20, 2017 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: The need for bonds if I have a pension?
Replies: 43
Views: 2619

Re: The need for bonds if I have a pension?

Having some bonds will not hurt you and will provide you with some dry powder if you need to rebalance. 20% is probably the minimum - a little lower than the usual 25% because you have a pension.
by Peter Foley
Sun Feb 19, 2017 12:04 am
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 29
Views: 2602

Re: Older parents advice.

Watty said: One advantage of owning the stocks in the taxable account is that if he never sells them and he goes to his estate then they will have a stepped up cost bases and the capital gains taxes would never need to be paid. I agree. In addition, holding more bonds in his IRA might slow growth ov...
by Peter Foley
Sat Feb 18, 2017 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 29
Views: 2602

Re: Older parents advice.

So if I am understanding this correctly, his portfolio is about $1.25M and is 73% in fixed income. I see nothing wrong with this allocation at his age. He seems to have "won the game" and has a solid fixed income portfolio that will last for years. If he is anxious about his stock holdings...
by Peter Foley
Sat Feb 18, 2017 12:50 pm
Forum: Investing - Theory, News & General
Topic: Is a 4% plus CPI withdrawal rate actually aggressive?
Replies: 207
Views: 8626

Re: Is a 4% plus CPI withdrawal rate actually aggressive?

I think that advances in health care are an overlooked aspect of withdrawal rate analyses. Fewer people are dying younger and fewer people are dying quickly (and relatively inexpensively to be crass). Advances in medicine have fewer people dying of heart attacks, many people surviving cancers to liv...
by Peter Foley
Sat Feb 18, 2017 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Over-saving in tax deferred while in 15% br
Replies: 6
Views: 602

Re: Over-saving in tax deferred while in 15% br

Camillus Based on your second post you are on the right track. Emphasizing tax deferred will be the better approach for a while. There are so many factors involved that it complicates planning. If you want to retire before age 59.5, that has implications, if you are going to delay SS benefits and wi...
by Peter Foley
Sat Feb 18, 2017 12:26 am
Forum: Investing - Help with Personal Investments
Topic: Over-saving in tax deferred while in 15% br
Replies: 6
Views: 602

Re: Over-saving in tax deferred while in 15% br

You need to create a template that reflects your income in retirement and shows your marginal tax brackets. I have a 5 year plan that I update every year. It provides me with guidance for Roth conversion and tax efficient withdrawals. Here is an example of one I created as a template. It does not ha...
by Peter Foley
Fri Feb 17, 2017 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Visiting the National Parks
Replies: 27
Views: 1366

Re: Visiting the National Parks

If I were going to try to do this I would break it into at least a west trip and an east trip for the continental US. A lot of the west could be done with Denver as a base camp. Sorry, but is really nothing close to my home base of Voyagers National Park, nor Isle Royal either. Teddy Roosevelt and t...
by Peter Foley
Wed Feb 15, 2017 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Another Newbie Tax Question!
Replies: 15
Views: 465

Re: Another Newbie Tax Question!

You can create an amended return using Turbo tax. I would suggest delaying just a bit, a week or two, as I don't know the effect of having both a regular and an amended return in process. Note: if you are in the 15% tax bracket and most the dividends are qualified the difference might be minimal. I'...
by Peter Foley
Wed Feb 15, 2017 5:41 pm
Forum: Investing - Theory, News & General
Topic: How to increase risk and return incrementally in a portfolio?
Replies: 31
Views: 1568

Re: How to increase risk and return incrementally in a portfolio?

RE S&P 500 versus small cap value: "expected higher return" is certainly one consideration. Another consideration is time. Looking at returns over a five year period just isn't long enough. Most of us would be happy with a return on portfolio 1% higher than the historical average. For ...
by Peter Foley
Tue Feb 14, 2017 5:03 pm
Forum: Investing - Theory, News & General
Topic: How to increase risk and return incrementally in a portfolio?
Replies: 31
Views: 1568

Re: How to increase risk and return incrementally in a portfolio?

KlangFool

Thanks for the very interesting link. One interesting item is that 88% of return is dependent upon asset allocation. Ergo, that would be the first place I would look in terms of increasing risk and return.
by Peter Foley
Tue Feb 14, 2017 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Investment Portfolio + House Purchase in HCOL
Replies: 2
Views: 218

Re: Help with Investment Portfolio

You are on the right track with the way you are investing in your 401ks. There is no reason to hold so many funds in your IRA so you can simplify there without any tax consequences. If you want to hold international bonds, that would be a good place. Keep in mind that a position of less than 5% does...
by Peter Foley
Mon Feb 13, 2017 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Who would quit playing if they already won?
Replies: 106
Views: 10252

Re: Who would quit playing if they already won?

One can "win" in a variety of ways. I would not quit playing because there is always another goal. Have enough for a comfortable retirement? Okay perhaps you won that round. Do you have enough to fund your favorite charities (or provide for your heirs)? That is a different goal. Do you wan...
by Peter Foley
Mon Feb 13, 2017 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: New to Forum Questions
Replies: 41
Views: 3612

Re: New to Forum Questions

I think it is time for you to put your toe in the water. You have front end loads on most of your funds - there is no reason to invest this way. A very simple approach would be to invest with Vanguard using a LifeStrategy fund that is appropriate to your risk tolerance.
by Peter Foley
Mon Feb 13, 2017 11:47 am
Forum: Investing - Help with Personal Investments
Topic: IPS - Asset Allocation Band
Replies: 7
Views: 313

Re: IPS - Asset Allocation Band

Just to clarify because the point was raised in another thread: A band of 5 percentage points is common. A band of 5% is a little tighter.

So in your case the acceptable range would be from about 74% to 66% in stocks.
by Peter Foley
Mon Feb 13, 2017 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Simple Inherited IRA Portfolio
Replies: 25
Views: 1130

Re: Simple Inherited IRA Portfolio

I would second a couple of the recommendations already made and provide my reasoning. 1. Do add some international. You can be conservative in terms of the percentage but it does add some diversification. While I personally am not a big fan of international, I am aware of the very long downturn in t...
by Peter Foley
Sun Feb 12, 2017 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: The old debate on taxes now vs later
Replies: 25
Views: 2451

Re: The old debate on taxes now vs later

I too would be interested in the answers. My emotional response is to put off the pain (delay paying taxes). My more reasoned response is to endure some pain, but make it bearable. IMHO I think the prospect of RMD's depleting one's net egg are a little overblown. As is often pointed out, you don't h...
by Peter Foley
Sat Feb 11, 2017 11:26 am
Forum: Investing - Help with Personal Investments
Topic: How Much Cash Do You Actually Hold?
Replies: 101
Views: 8397

Re: How Much Cash Do You Actually Hold?

Simple question, complicated answer. Retired 4.5 years. We hold about six months of expenses in savings and checking accounts. That is pure cash with undetectable interest. We have a lot of "no risk cash" in good paying stable value funds in tax deferred accounts - perhaps 20% or more of n...
by Peter Foley
Fri Feb 10, 2017 2:01 pm
Forum: Investing - Theory, News & General
Topic: Does Micheal Kitces Rising Retirement Glidepath Still have legs
Replies: 47
Views: 3741

Re: Does Micheal Kitces Rising Retirement Glidepath Still have legs

larryswedroe wrote:

FWIW, these "glide paths" IMO make no sense at all.


Pascal's Wager, only the stakes aren't as high.
by Peter Foley
Fri Feb 10, 2017 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: 1 Year From Retirement - Last Checkup
Replies: 5
Views: 1136

Re: 1 Year From Retirement - Last Checkup

You are in good shape with a pretty solid plan. Good may not be ideal, but the ideal is rarely obtainable. Some positives: While you have a large portion of your savings in tax deferred, you are planning for a few years of Roth conversion and you have a substantial position in taxable to be able to ...
by Peter Foley
Thu Feb 09, 2017 8:39 pm
Forum: Local Chapters and Bogleheads Community
Topic: Your USER NAME...what does it mean?
Replies: 250
Views: 8904

Re: Your USER NAME...what does it mean?

One of my great grandfathers. I don't think he ever had a penny to his name but he donated his house to become the church rectory.

Genealogy is one of my hobbies.
by Peter Foley
Thu Feb 09, 2017 2:30 pm
Forum: Personal Consumer Issues
Topic: Cost of tax preparation
Replies: 43
Views: 3214

Re: Cost of tax preparation

I have no way to judge if the following is a comparable situation or not. My in-laws (ages 90 +) had fairly complex tax returns based on more than a dozen sources of income, at least one from out of state. They also had extensive deductions. However, no LLC and no private equity. My wife and I have ...
by Peter Foley
Wed Feb 08, 2017 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: [Newbie - financial questions, how to manage inheritance?]
Replies: 2
Views: 214

Re: [Newbie - financial questions, how to manage inheritance?]

It is very hard to give good advice when only considering a portion of one's holdings. So for starters. At age 65, a 50/50 asset allocation is reasonable, plus or minus about 10 percentage points. So if you want lower risk, aim for 40/60 overall. If $450K is now a significant part of your portfolio,...
by Peter Foley
Wed Feb 08, 2017 10:42 pm
Forum: Investing - Theory, News & General
Topic: Does Micheal Kitces Rising Retirement Glidepath Still have legs
Replies: 47
Views: 3741

Re: Does Micheal Kitces Rising Retirement Glidepath Still have legs

Like many investment theories, I think the Rising Equity Glidepath makes sense for some retirees. Which ones depends on their portfolio, their ability and willingness to moderate their expenses/modify their lifestyle, and their risk tolerance. Let's face it, if you have saved enough to be very comfo...
by Peter Foley
Mon Feb 06, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Two Years to Retirement – Please review and comment
Replies: 53
Views: 6644

Re: Two Years to Retirement – Please review and comment

David I'm sure you are aware that the most often recommended strategy is to do Roth conversion after retirement and before receiving SS benefits. You mention Roth conversions only when you reach RMDs. Is this because you are withdrawing from TIRA for living expenses prior to receiving SS benefits wh...
by Peter Foley
Sun Feb 05, 2017 6:26 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Account Strategy - Spouse Overlap
Replies: 20
Views: 1448

Re: IRA Account Strategy - Spouse Overlap

Here is an example of a slice and dice approach. Note that you can subdivide these even more. Perhaps you want a natural resources fund or a health care fund, maybe you want international bonds and TIPS. The more you add the more difficult it is to maintain. Bill Bernsteins's "Coward Portfolio&...
by Peter Foley
Sun Feb 05, 2017 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tax-Loss Harvesting
Replies: 4
Views: 506

Re: Tax-Loss Harvesting

The basic answer is yes. If you tax loss harvest you can use that to offset short term or long term capital gains. Once those are offset you can offset ordinary income up to a yearly limit of $3000 (mfj). When you sell investment real estate you have held for a few years you may have both capital ga...
by Peter Foley
Sun Feb 05, 2017 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: tIRA to Charity
Replies: 30
Views: 1340

Re: tIRA to Charity

Sorry to hear of your loss. If by late last year your mean late 2016, I would look into the possibility of disclaiming the IRA. Let it pass directly to your children and avoid the double taxation.
by Peter Foley
Sat Feb 04, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for a temporary change in AA
Replies: 14
Views: 732

Re: Looking for a temporary change in AA

A slightly different take on your questions . . . . As one's portfolio value increases the size of one's potential loss increases as well. This may require a permanent change in one's AA because your risk tolerance has changed. The fact that you have posed the question tells me that age - 10 in bond...
by Peter Foley
Fri Feb 03, 2017 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Do ROTH conversion or not?
Replies: 23
Views: 2152

Re: Do ROTH conversion or not?

BigJohn wrote: Conversion is not an all or nothing thing. With all the assumptions and variables involved, I think ending up with a mix of tIRA and Roth assets is a good end point. It increases flexibility to respond to the kinds of issues mentioned above as well as the unknowns (eg tax code changes...
by Peter Foley
Fri Feb 03, 2017 8:22 pm
Forum: Investing - Theory, News & General
Topic: Best way to fund your Donor Advised Fund
Replies: 31
Views: 1785

Re: Best way to fund your Donor Advised Fund

I get a written statement in the mail for every transfer of stock (donation) from my taxable account to my DAF (Schwab). I enter the numbers from those statements into Turbo Tax and it sums them on my tax form.
by Peter Foley
Fri Feb 03, 2017 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Account Strategy - Spouse Overlap
Replies: 20
Views: 1448

Re: IRA Account Strategy - Spouse Overlap

I would mirror the funds in each account as well. If you had a lot of funds and were employing a slice and dice approach, I would not try to mirror the funds. In your case it is manageable.
by Peter Foley
Thu Feb 02, 2017 11:56 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Account Strategy - Spouse Overlap
Replies: 20
Views: 1448

Re: IRA Account Strategy - Spouse Overlap

aramv wrote: Vanguard Inflation-Protected Securities VIPSX 10% Vanguard GNMA Bonds VFIIX 10% Vanguard Total International Bond Fund VTIBX 20% Vanguard Small Cap Index NAESX 10% Vanguard Small Cap Value VISVX 10% Vanguard International Value VTRIX 10% Vanguard Emerging Market Index VEIEX 10% Vanguard...
by Peter Foley
Thu Feb 02, 2017 11:44 pm
Forum: Investing - Theory, News & General
Topic: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?
Replies: 81
Views: 5363

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Like livesoft we have a number of different retirement accounts in addition to a taxable account. Not all of our preferred options are available in all accounts. 1. Withdrawal phase 4.5 years. 2. 6 funds in all. About a 50/50 AA with 10% of stocks in international 3.Total Stock market S&P 500 In...
by Peter Foley
Wed Feb 01, 2017 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: How do you guys ignore this stuff?
Replies: 80
Views: 8066

Re: How do you guys ignore this stuff?

In the past there were also a number of "personal finance" magazines that came out with "What do do" and "Where to invest" each year. Now it is digital and much more immediate. The answer is the same, have a reasonable plan and stick with it. Maybe it comes with age - I...
by Peter Foley
Tue Jan 31, 2017 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous new investor for retirement savings
Replies: 10
Views: 1171

Re: Nervous new investor for retirement savings

bdpb's approach is the one I would advise as well, with only a couple minor modifications. If you feel this is too much to manage, your could leave your 401k as is. The expense ratios are not rock bottom, but they are not horrible either. Your Roth is where the most attention is needed. I would not ...
by Peter Foley
Mon Jan 30, 2017 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund options
Replies: 23
Views: 1437

Re: Doner Advised Fund options

We use Schwab and have been very pleased with them. Their interface is very easy to understand and they make ongoing donations exceptionally easy to do. Find the organization, click the link "donate again" and enter the new amount. It could not be simpler.
by Peter Foley
Mon Jan 30, 2017 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Beneficiary: 1 person vs. 5 for tax reasons?
Replies: 16
Views: 1024

Re: IRA Beneficiary: 1 person vs. 5 for tax reasons?

My initial reaction is the same as Gill's. It would be nice to know if this is the bulk of her estate or just a small portion. If it were just a small portion, for example, I could see an unequal distribution based on heirs' tax situation. Then the rest of the estate divided in such a way as to even...
by Peter Foley
Sat Jan 28, 2017 7:48 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing Strategy - What's Yours?
Replies: 3
Views: 779

Re: Rebalancing Strategy - What's Yours?

The usual (optimal?) approach is to hold one's bond allocation to the extent possible in tax deferred. Because the contributions and gains will never be taxed, stock mutual funds are the preferred vehicle for Roths. You may end up having to hold some of your bond allocation in taxable or Roth. I don...
by Peter Foley
Sat Jan 28, 2017 12:27 am
Forum: Personal Finance (Not Investing)
Topic: Help calculating federal taxable income
Replies: 7
Views: 439

Re: Help calculating federal taxable income

On the income side you have nothing listed for investment income, e.g., dividends and capitals gains from a mutual fund in a taxable account. Did you get a tax refund from the state or local government last year? On the deductions side you have nothing listed for charitable deductions. Personal prop...
by Peter Foley
Fri Jan 27, 2017 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Timing of Roth IRA conversion
Replies: 30
Views: 3756

Re: Timing of Roth IRA conversion

I've not had to do a recharacterization since I started the process 4 years ago, so I am perhaps overly concerned with the process of doing so. In that regard, I think "two frogs" is plenty. I would be content to be able to recharacterize a January Roth conversion if there were a significa...
by Peter Foley
Fri Jan 27, 2017 1:33 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota main mtg | Sat Jan-28 9:30am | FINAL reminder
Replies: 4
Views: 613

Re: Minnesota main mtg | Sat Jan-28 9:30am | FINAL reminder

I'm looking forward to the Retirement Calculator presentation discussion. There are so many of them out there it is hard to know which is the best to use for each person's situation (accumulation stage/withdrawals state, etc). Darrow Kirkpatrick has a list that he recommends, as does the BH Wiki. Th...
by Peter Foley
Fri Jan 27, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion from which Spouse's Account?
Replies: 13
Views: 494

Re: Roth Conversion: Which Spouse's Account?

I would do conversions from both accounts for a couple of years to start the clock for each of them on the 5 year rule for conversions. That might give them needed flexibility later. After that it depends greatly on their current tax bracket, ability to pay taxes for the conversion from taxable acco...
by Peter Foley
Fri Jan 27, 2017 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Cashing out for 2017 expenses while market is high?
Replies: 33
Views: 3188

Re: Cashing out for 2017 expenses while market is high?

dbr wrote: It may make people feel more comfortable to have cash ahead for small annual withdrawals, but it doesn't make any difference one way or the other. I admit that I am one of those people who feel more comfortable with this approach. I try to keep this in perspective; little or no earnings o...

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