Search found 4061 matches

by Peter Foley
Tue Nov 21, 2017 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Retire couple Roth Conversion Help
Replies: 41
Views: 2418

Re: Retire couple Roth Conversion Help

Divebums wrote: Does the Medicare Part B premium go up a fixed amount or is it tied to how much income you have? There are tables on the web that cover this but here is the basic formula. Monthly premium for married filing jointly: Modified Adjusted Gross Income 2 years prior, Monthly premium <170,0...
by Peter Foley
Mon Nov 20, 2017 9:35 pm
Forum: Personal Consumer Issues
Topic: What brand of used car - Hyundai vs Nissan?
Replies: 27
Views: 1595

Re: What brand of used car - Hyundai vs Nissan?

We owned an Elantra which we gifted to our daughter. We then bought a Kia Forte. I like the idea of a 60 month warranty when buying a used car.
by Peter Foley
Sun Nov 19, 2017 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Retire couple Roth Conversion Help
Replies: 41
Views: 2418

Re: Retire couple Roth Conversion Help

If you run your scenarios through I-ORP or the Retiree Portfolio Model you should get an idea as to the payoff on your conversion approach. A note on #4. Medicare part B premium is based on Modified Adjusted Gross income. Over $170,000 two years prior and the part B premium goes up. At the top of th...
by Peter Foley
Sat Nov 18, 2017 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: What we don't know
Replies: 42
Views: 2795

Re: What we don't know

Quoting Taylor, and many others I am sure, "there are many roads to Dublin." We also know that some of the routes are well tread and that many of those who have arrived have shared their experience with us. First you need to start out -live below your means - and you have to manage risk and stay the...
by Peter Foley
Fri Nov 17, 2017 11:42 pm
Forum: Investing - Help with Personal Investments
Topic: Which Target Date Fund?
Replies: 13
Views: 1072

Re: Which Target Date Fund?

As mega 317 stated, you really have to look at the make up of the funds. Target Retirement Funds with the same date can have different AA's and can have different glide paths as they approach the target date. With similar expense ratios choose the fund that best meets your AA criteria. Also note tha...
by Peter Foley
Fri Nov 17, 2017 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Spending Taxable to Zero during Retirement
Replies: 32
Views: 3346

Re: Spending Taxable to Zero during Retirement

Gerry L wrote: I think the flexibility of having different types of accounts to draw from in retirement is a definite plus. I agree. We currently have about 4 year's worth of expenses in taxable and have spent down at least that many years worth of expenses since we retired 5+ years ago. We always f...
by Peter Foley
Fri Nov 17, 2017 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: RMD account
Replies: 16
Views: 1290

Re: RMD account

Like Celia, I'm inclined to advise you to use those funds you current have if they meet your needs. No need to add additional complication to your portfolio. A related issue . . . If your annual expenses of $65,000 include donation to charities, why not just donate a portion of your RMD to those cha...
by Peter Foley
Thu Nov 16, 2017 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K fund choices, please
Replies: 12
Views: 644

Re: Help with 401K fund choices, please

Welcome to the forum. You seem to be doing well living below your means and saving for retirement. Your Voya plan has okay, not great, choices. The expense ratio for the funds you chose are a little on the high side, but not horrible. I agree with the recommendation to drop the Growth Equity fund an...
by Peter Foley
Wed Nov 15, 2017 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Too much risk for early retirement?
Replies: 21
Views: 3191

Re: Too much risk for early retirement?

If your 457 account is substantial, that plus some Roth conversions would be an approach to get you to 59.5 to access other funds. An unknown in terms of providing advice is what is the cost basis of your taxable account holdings.
by Peter Foley
Wed Nov 15, 2017 9:24 pm
Forum: Investing - Theory, News & General
Topic: Do you subscribe to taking risk only on the equity side
Replies: 40
Views: 2319

Re: Do you subscribe to taking risk only on the equity side

Answer to the original question, "yes."

That is why I have my non equities split between total bond, stable value and TIPS.
by Peter Foley
Wed Nov 15, 2017 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Investing help family of four....Do nothing?
Replies: 22
Views: 1887

Re: Investing help family of four....Do nothing?

livesoft wrote: In your shoes, I would contribute the maximum allowed to a 401(k) which is $18,000 in 2017 and $18,500 in 2018. You should change your contribution from your paycheck TONIGHT! You can even have ALL your paycheck to your 401(k) for the rest of the year and just use the TAXABLE account...
by Peter Foley
Tue Nov 14, 2017 9:28 pm
Forum: Investing - Theory, News & General
Topic: Buffett 90/10 Portfolio vs Target Retirement
Replies: 29
Views: 3240

Re: Buffett 90/10 Portfolio vs Target Retirement

eye.surgeon wrote: Keep in mind you have plenty of international exposure holding 90% in S&P 500 since much of the profits of those companies you own is international. While I hold some international, about 7% of total portfolio and 12% of equity portfolio, I have always rationalized that because I ...
by Peter Foley
Mon Nov 13, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Advice needed for parent's finances
Replies: 38
Views: 3486

Re: Advice needed for parent's finances

Guitarguy wrote: Comments in red. 1. From an asset allocation standpoint, it seems to me like she's way overexposed to the market for her age at essentially 100% stocks plus some cash. My guess is none of this has been changed or even really examined since my dad passed (1996), and just to clarify m...
by Peter Foley
Sun Nov 12, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: How do you project the amount you will have to spend annually in retirement?
Replies: 76
Views: 4163

Re: How do you project the amount of income you will have in retirement?

I built my own spreadsheet. Here are the column headings: Year - Age Husband - Age Wife - Estimated Spending - Pension - Rental Income - Social Security -Total Income - Investment Income need - -Portfolio return @ 4% - Total Income - Annual Surplus -Year end assets Inflation factors are built into t...
by Peter Foley
Sat Nov 11, 2017 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: allocation and diversification durring retirement
Replies: 4
Views: 622

Re: allocation and diversification durring retirement

I'm okay with a fairly heavy cash position early in retirement. Three years of cash needs is a common recommendation, although I've seen two years recommended more frequently. The one thing I would do is move some tax deferred and Roth S&P 500 holdings into Total Stock Market for a bit better divers...
by Peter Foley
Sat Nov 11, 2017 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 1731

Re: Donor Advised funds

Just to emphasize a couple of the DAF advantages mentioned here. It allows you to donate appreciated shares and not pay taxes. You can donate specific amounts to the DAF in a given year that provide additional tax relief elsewhere: e.g., donate enough to remain in the 15% tax bracket so dividends an...
by Peter Foley
Fri Nov 10, 2017 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: 457b or Traditional IRA?
Replies: 6
Views: 577

Re: 457b or Traditional IRA?

Because you mention a state pension I have to believe that your 457b is a governmental plan. Typically these are very good options. There is likely to be one or two good low cost index mutual funds.
by Peter Foley
Wed Nov 08, 2017 10:30 pm
Forum: Investing - Help with Personal Investments
Topic: Different goals/allocations on different accounts
Replies: 6
Views: 486

Re: Different goals/allocations on different accounts

I would go with the revised plan. As a resident alien and a student your status is a bit unique here. Speaking as a former PhD. candidate, I would advise that your goal be less saving for retirement and more avoiding student debt and any other debt. You will have more flexibility in terms of pursuin...
by Peter Foley
Tue Nov 07, 2017 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: When did you start investing in taxable accounts?
Replies: 23
Views: 2505

Re: When did you start investing in taxable accounts?

I inherited a few stocks (less than $20K) in my late 20's. I caught the investing bug then. For a while I thought I was a great stock picker - I later realized it was the rising tide.
by Peter Foley
Tue Nov 07, 2017 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation and placement critique/feedback
Replies: 13
Views: 986

Re: Asset allocation and placement critique/feedback

I would like to reiterate Taylor's comment that you have not chosen poorly, you have a good mix of funds. While the mix could be a little more simple, what you have is fine. In your current mix you are missing mid cap and small cap stocks. Going with Total Stock Market in lieu of S&P 500 would add t...
by Peter Foley
Sat Nov 04, 2017 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Which account to withdraw from - Roth or Taxable?
Replies: 10
Views: 1299

Re: Which account to withdraw from - Roth or Taxable?

While it is hard to say without a complete picture of what percentage of assets you hold in taxable, tax free and tax deferred, I too would be inclined to take from taxable. You paid taxes to convert some tax deferred to a Roth. Those dollars have to grow tax free in the Roth for a number of years t...
by Peter Foley
Sat Nov 04, 2017 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Can someone here help me estimate taxes?
Replies: 13
Views: 1073

Re: Can someone here help me estimate taxes?

Are you looking for an estimate of your Federal taxes, State taxes or both? You list your salary. Does your wife work? There are one-line calculators that will provide estimates of your federal taxes. At a minimum you will need to know the following inputs: salary income, other income (investment in...
by Peter Foley
Fri Nov 03, 2017 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: 403(b) - pushing annuity?
Replies: 12
Views: 1057

Re: 403(b) - pushing annuity?

I would ask to speak to his supervisor. There is no way I would invite this person into my home to make a sales pitch.

Is the information available on line?
by Peter Foley
Thu Nov 02, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation rebalancing
Replies: 9
Views: 1060

Re: Asset allocation rebalancing

I would not hurry to move my 401k into an IRA. There can be many advantages in keeping (at least some) assets in a 401k. You may have access to low expense ratios. You may have access to a good stable value funds. You may have access to short term loans. You may be over 55 and want to withdraw funds...
by Peter Foley
Wed Nov 01, 2017 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio critique/future directions please
Replies: 5
Views: 552

Re: Portfolio critique/future directions please

I think you have made excellent choices in funds and your AA is what i would recommend for someone your age. The only thing I would consider would be a little more diversification in non equities - maybe add the managed income portfolio if the return is over 2% per year. (I'm guessing it is a stable...
by Peter Foley
Wed Nov 01, 2017 10:49 pm
Forum: Investing - Help with Personal Investments
Topic: what % return do you use?
Replies: 62
Views: 4144

Re: what % return do you use?

I have two tabs built into my withdrawal plan spreadsheet, one tab projects 4% real and the other 7% real. I don't pay much attention to the 7% tab.
by Peter Foley
Tue Oct 31, 2017 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone have an account with Charles Schwab?
Replies: 12
Views: 1351

Re: Does anyone have an account with Charles Schwab?

I too have had an account with Schwab for about 30 years. I've had an adviser assigned to me for the last 10-15 years. I get one or two calls per year, very cordial and nothing pushy. The adviser offered to do a one time plan for my wife and me about 10 years ago - it was done at no cost. She also r...
by Peter Foley
Tue Oct 31, 2017 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: Help Planning Mom's Finances after Dad Passed
Replies: 27
Views: 2323

Re: Help Planning Mom's Finances after Dad Passed

Again, sorry for your loss. Nowadays 61 is still pretty young. BL and Celia made a couple points that should not be overlooked. Your mother will file married filing jointly this year. It may be to her advantage to take advantage of that by either doing a Roth conversion or by tax gain harvesting. Tr...
by Peter Foley
Tue Oct 31, 2017 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Allocation Critique
Replies: 4
Views: 519

Re: Retirement Allocation Critique

Just my opinion - I have no particular insight, just a bit a hesitation regarding international. The hesitation is based on a couple articles I read many years ago that pointed out that foreign accounting standards are not a good as US standards. My preference is 50/50 in retirement although I think...
by Peter Foley
Fri Oct 27, 2017 5:05 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 10-28-17
Replies: 15
Views: 1523

Re: Minnesota BH Qtrly Meeting 10-28-17

Update on the liquidity breakout session. Among the aspects of liquidity to be discussed . . . .

The facilitator will propose and lead a discussion regarding "liquidity hierarchy" (Cash, Cd's. Savings, Bonds, etc). He will also explore the concept of "liquidity risk."
by Peter Foley
Thu Oct 26, 2017 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Max Tax Deferred Contribution in 1 Year
Replies: 18
Views: 1416

Re: Max Tax Deferred Contribution in 1 Year

Some educational institutions allow an employee to contribute both to a 403b and to a 457 plan. As stated, one of the big advantages of a 457 plan is the ability to withdraw funds without penalty after separation from the employer. This can be a distinct advantage for those who want to retire early.
by Peter Foley
Thu Oct 26, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Max Tax Deferred Contribution in 1 Year
Replies: 18
Views: 1416

Re: Max Tax Deferred Contribution in 1 Year

Following up on flamesavers . . . The backdoor Roth is essentially contributing to a regular IRA with after tax money. That IRA contribution can then be converted to a Roth. That sounds like where you were headed when you said Not being eligible for Roth's, can we contribute 5500 each tax deferred i...
by Peter Foley
Wed Oct 25, 2017 4:17 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 10-28-17
Replies: 15
Views: 1523

Re: Minnesota BH Qtrly Meeting 10-28-17

Will the Liquidity breakout session focus mostly on retirees managing risk or will it be primarily about emergency funds and where to hold them? Or both?
by Peter Foley
Tue Oct 24, 2017 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for a Trust- need family and investing advice
Replies: 10
Views: 678

Re: Investing for a Trust- need family and investing advice

Do I understand correctly that no distributions will be made for two years and then only to you? Management of the trust should be fairly straightforward for the first couple of years. A complicating factor will be when the additional money is added. Additional money will result in additional income...
by Peter Foley
Tue Oct 24, 2017 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: avoiding sequence of returns risk?
Replies: 39
Views: 2758

Re: avoiding sequence of returns risk?

I agree that a more conservative AA at the time of retirement is a good approach. 3 years of cash and at least 5 + years of non equities is a reasonable plan (basically Klang Fool's suggestion of planning for a 5 year recession). Wade Pfau has an article called Rising Equity Glide Path. He presents ...
by Peter Foley
Mon Oct 23, 2017 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Tax-Exempt Bond ETF or State-specific fund?
Replies: 4
Views: 487

Re: Vanguard Tax-Exempt Bond ETF or State-specific fund?

This is very helpful to us Minnesotans. Thanks for raising the question and for the analysis.
by Peter Foley
Mon Oct 23, 2017 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: AA changes age 70
Replies: 10
Views: 1241

Re: AA changes age 70

my name wrote:
Tax-wise, Turbo Tax has been my friend.
One of the outputs you can select in Turbo tax is a "two year comparison." I copied that output to a spreadsheet and it has been very helpful in terms of estimating taxes in the future.
by Peter Foley
Sun Oct 22, 2017 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation -- How do you split yours? :P
Replies: 5
Views: 1029

Re: Asset Allocation -- How do you split yours? :P

Age and risk tolerance are factors in setting one's AA. How old are you? Did you have money invested during the great recession? If yes, did you change your strategy during the 2008-2009 down market?
by Peter Foley
Sun Oct 22, 2017 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: AA changes age 70
Replies: 10
Views: 1241

Re: AA changes age 70

my name

All of your changes seem well reasoned. You are increasing diversity somewhat and reducing risk somewhat. As long as you have the risk tolerance to stick with your plan during a down market, and have some flexibility in spending or a very low withdrawal rate, you should be fine.
by Peter Foley
Sun Oct 22, 2017 9:27 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 10-28-17
Replies: 15
Views: 1523

Re: Minnesota BH Qtrly Meeting 10-28-17

I stand corrected. There will be a single session on year end considerations. I've been looking at tax topics. Here is a potential list of tax related topics that may be of interest to the group and may be discussed. Income deferrals (401k, IRA etc.) Deductions and bunching deductions Gifting to hei...
by Peter Foley
Fri Oct 20, 2017 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance and Retirement Savings
Replies: 21
Views: 2892

Re: Inheritance and Retirement Savings

Celia wrote: 1. Start doing Roth conversions now and bump it up when you both stop working. Aim for a level Taxable Income (Form 1040, line 43) each year so that your taxes are relatively level instead of spiking at age 71. (When one of you dies, the survivor will have to file as Single, which will ...
by Peter Foley
Thu Oct 19, 2017 9:00 pm
Forum: Investing - Theory, News & General
Topic: For those near retirement and rebalanced to Bonds...
Replies: 34
Views: 3629

Re: For those near retirement and rebalanced to Bonds...

When you approach retirement one's AA has a lot to do with risk tolerance and the amount of flexibility you think you have. I went from about 70% stocks to 45% in the year or so before I retired. Because we have flexibility (ability to take risk) I've purposefully let things drift a bit over the pas...
by Peter Foley
Wed Oct 18, 2017 8:41 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Qtrly Meeting 10-28-17
Replies: 15
Views: 1523

Re: Minnesota BH Qtrly Meeting 10-28-17

Just to clarify - I believe there will be two separate discussions regarding "End of Year Considerations." One group will spend time on a variety of year end consideration while a second group will look almost exclusively at year end tax considerations - with some thought given to managing one's tax...
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: 105
Views: 10131

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: 107
Views: 7086

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: 43
Views: 3636

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: 460

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: 48
Views: 11038

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: 1183

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: 641

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?