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by Peter Foley
Sat Mar 16, 2024 8:48 am
Forum: US Chapters
Topic: Minnesota Bogleheads Spring Meeting: April 27, 2024
Replies: 0
Views: 229

Minnesota Bogleheads Spring Meeting: April 27, 2024

Save the Date


Date: 4/27/24
Time: 9:30 - Noon
Place: Minnetonka, Ridgedale Library - Rohlf Room (plus 172 & 174)
This has been our regular meeting place for the past few years.

An agenda with information regarding the plenary session and breakout sessions will follow when finalized
by Peter Foley
Tue Mar 12, 2024 4:31 pm
Forum: Personal Investments
Topic: Newbie for Bonds
Replies: 30
Views: 2469

Re: Newbie for Bonds

Not mentioned specifically here is where will you hold your bond allocation? Will it be in an IRA or in a regular brokerage account? If in a regular account there may be income tax implications for some holdings.
by Peter Foley
Mon Mar 11, 2024 2:51 pm
Forum: Personal Investments
Topic: T Notes versus TIPS
Replies: 5
Views: 613

Re: T Notes versus TIPS

A little more background in terms of this particular purchase. Initially it will be about 2% of my investment portfolio so I'm not inclined to do a 50/50 split of T Notes and TIPS. I expect a couple future purchases over the next year or so to increase that holding to about 5%. My 457b plan has some restrictions regarding withdrawals from stable value funds.

(I'm over 70.5 years in age and RMDs and estate planning with regard to beneficiary designations are reasons I continue to hold a 457b account as well as an IRA.)
by Peter Foley
Mon Mar 11, 2024 10:22 am
Forum: Personal Investments
Topic: T Notes versus TIPS
Replies: 5
Views: 613

T Notes versus TIPS

I have historically invested a portion of my non equity allocation in a stable value fund. The low guaranteed yields have me searching for an alternative in my IRA. (I'm rebalancing between my deferred account (457b) and my IRA to maintain the same overall asset allocation.) I do not want to have to do continual reinvesting that is required with a CD ladder. I already have a modest CD ladder. I do not want funds as they have historically fluctuated too much in value negating the risk avoidance feature I seek in non equities. Ergo, I would prefer moderate term (5 to 10 years) individual T Notes or TIPS in my IRA that I can buy through my brokerage account. Which would be your recommendation, and why? My IRA is with Schwab. I do not have acco...
by Peter Foley
Thu Feb 15, 2024 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Keeping SS at lower taxable level
Replies: 17
Views: 2103

Re: Keeping SS at lower taxable level

How old is your mother?

If she is in her 70's she can make qualified charitable distributions from her IRA instead of gifting to charities from her regular accounts. The gifts from an IRA do not count as taxable withdrawals and would possibly reduce the amount of her social security benefits being taxed.
by Peter Foley
Tue Jan 30, 2024 7:20 pm
Forum: Personal Investments
Topic: I need reassurance that I'm doing the right thing.[portfolio review]
Replies: 30
Views: 5892

Re: My First Portfolio Review - Feedback Requested, Please. Large Percentage of Portfolio Is In Cash.

I think you are well situated and got a good response from lakpr.

Long term it would be a good idea to have a tax deferred account even though you are currently in a low tax bracket. Once you go that route - perhaps as you work your way into a higher tax bracket, slowly move your bond allocation there until you reach your target asset allocation in bonds.
by Peter Foley
Mon Jan 29, 2024 7:56 pm
Forum: Personal Investments
Topic: Portfolio Review 7 years prior to retiring
Replies: 9
Views: 1676

Re: Portfolio Review 7 years prior to retiring

You are retiring a bit on the early side in terms of IRA withdrawals.

I would suggest putting more money into Roth IRAs. Keep in mind that you can withdraw contributions (not earnings) w/o penalty. In your early years of retirement you can withdraw contributions from a Roth and then replace them with a Roth conversion.

This might be helpful in managing your taxes.
by Peter Foley
Fri Jan 26, 2024 7:11 pm
Forum: US Chapters
Topic: Minnesota Bogleheads Winter Meeting: Jan 27, 2024
Replies: 6
Views: 8645

Re: Minnesota Bogleheads Winter Meeting: Jan 27, 2024

Just a brief reminder that the meeting is tomorrow. If so inclined, come a few minutes early to help with set up.

One resource that will be mentioned tomorrow is the Numbers Unlimited reference sheet which is now available for 2024. It is an excellent tax planning and RMD planning reference produced by Financial Plan Inc. The reference sheet can be downloaded for free.
by Peter Foley
Thu Jan 25, 2024 10:56 pm
Forum: Personal Investments
Topic: 403 vs 457b
Replies: 9
Views: 1162

Re: 403 vs 457b

If there are reasonable low cost investment options the 457b is a better option if you are considering retiring early.

I have a 457b, also through Empower, and the options are just fine. Low cost, broad based equity funds are available.

My wife had both a 457b and a 403b (a public university was her employer) and her investment options were very similar in both account types.
by Peter Foley
Tue Jan 23, 2024 3:59 pm
Forum: Personal Consumer Issues
Topic: UK Trip Estimate
Replies: 104
Views: 9491

Re: UK Trip Estimate

I question the logic of the original itinerary and am ignoring the cost factor.

During the fall you are losing daylight. To start in London and end in Scotland does not take that into account.

Missing on the itinerary are a couple of Scotland highlights, Inverness and Loch Ness. They are worth a day each.

The revised approach is very doable. Stonehenge and Salisbury used to be a day trip from London. Perhaps it still is available as such.
by Peter Foley
Tue Jan 23, 2024 10:21 am
Forum: Personal Consumer Issues
Topic: Family International Trip - Italy or France
Replies: 13
Views: 1576

Re: Family International Trip - Italy or France

Starting from the premise that the OP wants to add 2-3 days to the trip, I agree that staying in the Barcelona area is advisable. Florence would be my pick for a single walkable city but getting there and international travel considerations to and fro would make me inclined to a different choice.

Certainly, lots to do Madrid. A not mentioned interesting alternative from Barcelona is Andorra.

Do flight to Barcelona go through Paris? If yes that becomes a more viable option.
by Peter Foley
Fri Jan 19, 2024 3:09 pm
Forum: Personal Investments
Topic: Starting Over
Replies: 17
Views: 2690

Re: Starting Over

You are proposing a simple approach and that is certainly a good approach.

While aiming for an almost equally simple approach I would add a minor adjustment to improve your future overall tax liability.

First step - be aware of your risk tolerance and choose a target retirement fund accordingly.
Second step - Because earnings from a Roth account are tax free it is generally recommended to have more equity expose in one's Roth and less in a tax deferred account.
Third step - Consider putting Roth funds in equities only and balancing that with slightly more conservative target retirement funds in your tax deferred accounts. The combined should be close to your desired asset allocation.
by Peter Foley
Wed Jan 17, 2024 7:25 pm
Forum: Personal Investments
Topic: 2024 Portfolio Checkup - Married Couple
Replies: 15
Views: 1982

Re: 2024 Portfolio Checkup - Married Couple

I'm of a similar opinion as Duckie.

With relatively high cost options in her 403b - choose a single broad based low cost option for this account. You have lots of other accounts where you can use better options to meet your desired asset allocation.

In general I would strive to simplify a bit and would add some diversification into non equities. 10% is my personal minimum hold for non equities - a position you would want to hold in a tax deferred account.
by Peter Foley
Wed Jan 03, 2024 7:06 pm
Forum: US Chapters
Topic: Minnesota Bogleheads Winter Meeting: Jan 27, 2024
Replies: 6
Views: 8645

Re: Minnesota Bogleheads Winter Meeting: Jan 27, 2024

A printable version of the agenda is available on the Minnesota Bogleheads Facebook page at https://www.Facebook.com/groups/MNbogleheads/

Please feel free to ask questions here in advance of the meeting.

Check the Minnesota website here: https://www.bogleheads.org/blog/portfol ... l-chapter/
by Peter Foley
Sun Dec 31, 2023 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion question
Replies: 9
Views: 1364

Re: Roth Conversion question

Generally speaking, the basic question with a Roth conversion is does it make sense to pay more taxes now and less later. Part of the calculation is current tax bracket versus future tax bracket when taking taxable RMD's (some RMD's can be non taxed qualified charitable contributions, for example). In the case presented by the OP making a conversion during a year of unemployment can be a conversion where very little taxes are paid. Example: Converting $20,000 with no other income would result in $6,150 in taxable income after the standard deduction. That amount is within the very low 10% marginal tax rate bracket - almost a no brainer. Converting $200,000 more than fills the 24% bracket with a substantial amount of money taxed at 24%. A muc...
by Peter Foley
Mon Dec 18, 2023 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab checking
Replies: 62
Views: 5600

Re: Schwab checking

I've used the Schwab ATM card in multiple counties in Europe without any problems. The checking pays very little interest but it is easy to link the account to your brokerage account and park funds in a money market or short term CD. Very easy user interface. Account transfers are easy as well.
by Peter Foley
Sun Dec 03, 2023 11:45 am
Forum: US Chapters
Topic: Suggestions for the Wiki
Replies: 694
Views: 535348

Re: Suggestions for the Wiki

Any thought about adding the link for "New Topics" to the Wiki page? The location of the link is not particularly intuitive.
by Peter Foley
Sun Dec 03, 2023 11:37 am
Forum: US Chapters
Topic: Minnesota Bogleheads Winter Meeting: Jan 27, 2024
Replies: 6
Views: 8645

Minnesota Bogleheads Winter Meeting: Jan 27, 2024

January 3 Update - Minnesota Bogleheads will meet on January 27, 2024. Ridgedale Library, 12601 Ridgedale Drive, Minnetonka, MN: 9:30 – 11:30 am Rohlf Meeting Room (Note to those who have attended previous meetings -this is our usual location.) MN Bogleheads - … “dedicated to do-it-yourself, low cost, diversified, stay the course investing” Draft Agenda 9:30 Introduction Welcome, opening remarks, splinter group update - by Chris 9:40 Plenary Session Details Below 10:25 5-Minute Break Breakout attendee sorting and breakout room assignments, attendees should have back-up break-out in mind due to room limits 10:30 Breakout Sessions Details below 11:30 Wrap Up Thank you for attending! Wo longer need to stack chairs or return tables. 11:30 Socia...
by Peter Foley
Mon Nov 13, 2023 4:44 pm
Forum: Personal Investments
Topic: New to retirement planning
Replies: 25
Views: 1974

Re: New to retirement planning

You are on the right path.

Saving to a 401k and putting it in a target retirement fund is fine. At your tax rate a Roth would be an acceptable approach as well.

Because you are the only breadwinner, I would suggest keeping a bit more in an emergency fund. If you can find a bank account that pays some interest that would be good.

Being debt free at your age is excellent. Many would envy you.

I would put some of the inheritance into an index fund and use some of it to increase your emergency fund. Maybe a couple $10,000 CD's - one a one year CD and the other a two year CD.

Note - this is relatively conservative advice.
by Peter Foley
Sat Nov 04, 2023 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Should I ask my in-laws to change their trust?
Replies: 83
Views: 9931

Re: Should I ask my in-laws to change their trust?

cchrissyy wrote:
it is possible their trust is already written such that if your husband disclaims his share will flow to his children.

or it is possible if he disclaims it flows to the siblings.

this would be a question for the current lawyer, and honestly, i would not raise it until the parents had passed.

i would focus on my own estate plan and gifts while living.
Indeed - this is the first step. Read the trust. Does the trust divide assets by three "per stirpes'?

If yes, any one of the three (or all) could disclaim all or part of their proceeds and those proceeds would pass to their children.

Read up on disclaiming and on per stirpes provisions in wills and trusts.
by Peter Foley
Fri Oct 27, 2023 7:17 pm
Forum: US Chapters
Topic: Minnesota Bogleheads Fall Meeting this Saturday
Replies: 1
Views: 4775

Re: Minnesota Bogleheads Fall Meeting this Saturday

Reminder - the meeting is tomorrow at the Ridgedale Library. Library opens at 9:00, meeting begins at 9:30.
by Peter Foley
Sun Oct 22, 2023 2:58 pm
Forum: US Chapters
Topic: Minnesota Bogleheads Fall Meeting this Saturday
Replies: 1
Views: 4775

Minnesota Bogleheads Fall Meeting this Saturday

Reminder - our fall meeting is this Saturday, October 28th. Ridgedale Library, Minnetonka, MN. 9:30 am

For full details follow this link viewtopic.php?t=411827

As always - sessions are free, no sales. One of our goals is to teach you to do your own financial planning. Come a bit early to select the breakout session topic of most interest to you.
by Peter Foley
Fri Oct 06, 2023 11:28 am
Forum: US Chapters
Topic: Minnesota Bogleheads Fall Meeting October 28, 2023
Replies: 8
Views: 7731

Re: Minnesota Bogleheads Fall Meeting October 28, 2023

Main Meeting Fall 2023 October 28, 2023 Ridgedale Library, 12601 Ridgedale Drive, Minnetonka, MN: 9:30 – 11:30 am Rohlf Meeting Room MN Bogleheads - … “dedicated to do-it-yourself, low cost, diversified, stay the course investing” mnbogleheads@gmail.com www.facebook.com/groups/MNBogleheads/ FINAL AGENDA 9:30 Introduction Welcome, opening remarks, splinter group update by Chris 9:40 Plenary Presentation Details Below 10:25 5-minute break Breakout attendee sorting and breakout room set up, have back-up breakout due to room limits 10:30 Breakout Sessions Choose one topic/table to attend and participate; 45 minutes in length; 11:30 Wrap Up Thank you for attending! Help clean up. No longer need to stack chairs, return tables. 11:30 Social Time/B...
by Peter Foley
Mon Oct 02, 2023 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: I have enough money, but I want a little bit more.
Replies: 24
Views: 4544

Re: I have enough money, but I want a little bit more.

Assuming the 145K is gross income and is taxable, with a standard deduction you are at $117,300 in taxable income. That is in the low middle of the 22% marginal tax bracket with current tax law. I would be inclined to withdraw some each year from the 457 act. You might also consider setting up a Roth for each of you and moving some funds to that. Keep in mind that your Medicare B is dependent on your Gross income not your taxable income. With a two year lookback that means at age 63 you will have to watch things more closely. My inclination would be to do withdrawals and modest Roth conversion for the next 5 years and then reassess. A goal would be to stay in the 22% bracket in the near future with a long term goal of not bumping much above...
by Peter Foley
Fri Sep 22, 2023 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance?
Replies: 4
Views: 1460

Re: Inheritance?

There are a couple simple options. In many states one can have a Transfer on Death Deed. The deed to the house would transfer to the named person upon the death of the owner.

Another option is that if you are the only child, you can disclaim an inheritance and it would pass to your heirs as if you had already died. If you have multiple children disclaiming an inheritance would pass to your heirs (plural) not just to one heir. This may not work in your case if there are multiple children in the per stirpes line.
by Peter Foley
Wed Aug 30, 2023 7:14 pm
Forum: US Chapters
Topic: Minnesota Bogleheads Fall Meeting October 28, 2023
Replies: 8
Views: 7731

Re: Minnesota Bogleheads Fall Meeting October 28, 2023

A brief note. There will be an updated more complete agenda posted in late September.
by Peter Foley
Wed Aug 30, 2023 7:12 pm
Forum: Personal Investments
Topic: Roth Conversion goals for Bogleheads
Replies: 104
Views: 11711

Re: Roth Conversion goals for Bogleheads

If possible convert enough so that RMD's don't push you into a high tax bracket. Note that at age 70.5 you can make charitable donations from IRAs.

Also, not often mentioned. Keeping some money in an IRA can serve as a health insurance supplement. If you have a high cost year in terms of medical expenses you may be in a zero tax bracket and can take funds from an IRA tax free. Note that $200,000 in an IRA generates about $8000 in RMD withdrawals the first couple years. That is very manageable in terms of tax planning.
by Peter Foley
Wed Aug 30, 2023 3:42 pm
Forum: US Chapters
Topic: Minnesota Bogleheads Fall Meeting October 28, 2023
Replies: 8
Views: 7731

Minnesota Bogleheads Fall Meeting October 28, 2023

Save the Date - Minnesota Bogleheads Fall Meeting scheduled for October 28, 2023 Final Agenda Update follows in this thread Ridgedale Library, 12601 Ridgedale Drive, Minnetonka, MN: 9:30 – 11:30 am Rohlf Meeting Room 9:30 Introduction Welcome, opening remarks, splinter group update by Chris 9:40 Plenary Presentation Secure Act 2.0 - Top 10 highlights - Chris 10:25 5-minute break Please help arrange meeting rooms for breakout sessions: Rohlf, Hallway, Rooms 172 and 174 10:30 Breakout Sessions Choose one topic/table to attend and participate; 45 minutes in length; 11:30 Wrap Up Thank you for attending! Help clean up. No longer need to stack chairs, return tables. 11:30 Social Time (opt.) Continue discussions with your fellow Boglehead friends...
by Peter Foley
Mon Aug 28, 2023 5:34 pm
Forum: Personal Investments
Topic: Roth Conversion
Replies: 62
Views: 5663

Re: Roth Conversion

If you have the ability to do so, run your numbers through the Retiree Portfolio Model spreadsheet. It is a downloadable spreadsheet so you can model the effect of various approaches to Roth conversion.

The wild card here is the poor health of one spouse. Calculations change a lot when one spouse dies. A couple years of conversions modestly into the 22% bracket may be a good approach. Better done sooner rather than later because of the statement "poor health". Bumping up into the second tier or IRMAA is not particularly costly, the third tier yes. If your husband is going to continue working and is covered by health insurance that again is reason to covert now rather than latter. (IRMAA has a two year look back provision.)
by Peter Foley
Mon Aug 28, 2023 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Navigating Estate Distribution: A Guide to Fair Resolutions Amidst Family Dynamics
Replies: 9
Views: 1016

Re: Navigating Estate Distribution: A Guide to Fair Resolutions Amidst Family Dynamics

Sorry to hear about this. We are going though the same thing with the estate of an uncle. The executor refuses to provide information. It is evident through public records, however, that the executor, who also had power of attorney, transferred real estate and stock holdings to himself prior to the uncle's death. The process is not as simple as the OP's description and the answers given. First of all, a will does not cover all of the assets of an estate. Was there a joint account as is often the case with some child helping manage an elderly parent's finances? This would pass to the joint account holder. Were there beneficiaries named on any accounts? These accounts would pass to the beneficiaries regardless of wishes stated in the will. We...
by Peter Foley
Wed Aug 23, 2023 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: retirement spending
Replies: 167
Views: 17853

Re: retirement spending

We live next door in Minnesota - slightly higher taxes than Wisconsin but cost of living about the same. We travel some, but not a lot, and not expensive destinations, and we rarely eat out. We are retired with 2 SS benefits payments and one pension.

2022 Tax summary
Federal taxes $32K
State Income tax $15.6K
Real estate tax $9.1K (metro area house plus summer lake cabin)
Medicare supplemental insurance $9.6K

So we are at $66,000 before we look at charitable contributions and living expenses. We do about $20K in charitable contributions - mostly from an IRA using qualified charitable distributions.
by Peter Foley
Mon Aug 14, 2023 3:52 pm
Forum: Personal Consumer Issues
Topic: Barcelona, Spain this September 9-22
Replies: 19
Views: 2063

Re: Barcelona, Spain this September 9-22

We stayed within walking distance of the beach in Barcelona. We had to walk a few blocks to catch the metro, but no big deal.

Monserrat was not mentioned yet, well worth the visit. I agree with the suggestions of the Dali museum and Tarragona. Girona is on the way to the Dali site and is worth a few hours as well.

Sagunto is a little father south, but also worth the visit if you are interested in Roman ruins.
by Peter Foley
Sun Jul 23, 2023 5:05 pm
Forum: Personal Investments
Topic: Reached Retirement – Appreciate Advice Regarding Portfolio Changes
Replies: 9
Views: 2191

Re: Reached Retirement – Appreciate Advice Regarding Portfolio Changes

I disagree with the advice to convert the 457b to an IRA. It sounds like you have a good paying stable value fund. That is not available in an IRA. A stable value fund can be considered a bond and can be the anchor of your bond allocation. It is all I hold in my 457b.

My inclination would be to simplify your wife's account and to reduce bond holdings in Roths. Better to have your bond allocation in a tax deferred account and your equities in a Roth.
by Peter Foley
Sun Jul 23, 2023 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Applying for Social Security (Slightly) Early
Replies: 20
Views: 2496

Re: Question Re: Applying for Social Security (Slightly) Early

If you have some savings from which to draw, take a close look at the suggestion to delay until January of next year. If you do so there will be no income offset (for wages already earned this year) and you will be entitled to a slightly higher monthly payment.
by Peter Foley
Sun Jun 25, 2023 7:31 pm
Forum: Personal Investments
Topic: Help with portfolio consolidation
Replies: 10
Views: 1164

Re: Help with portfolio consolidation

A rule of thumb that is sometimes mentioned is that a holding of less than 5% of your total allocation is not enough to make a difference.

Some who post here recommend a 3 fund portfolio. The Wiki has recommendations for portfolios with a few more funds.

As noted - pay attention to your capital gains as you do this. You may be able to make an initial consolidation that offsets capital gains and capital losses.
by Peter Foley
Sat Jun 24, 2023 7:01 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3895
Views: 2424562

Re: "Bogleheads 3 Fund Portfolio Review"

Just a heads up - here is the contents outline

Contents
Bogleheads 3 Fund Portfolio Review Video
What Is the Bogleheads 3 Fund Portfolio?
Why Index Funds?
Why International Stocks?
Bogleheads 3 Fund Portfolio Benefits
Bogleheads 3 Fund Portfolio – Choosing Assets and ETFs
U.S. Stocks
International Stocks
Bonds
Why No International Bonds?
Bogleheads 3 Fund Portfolio Portfolio Historical Performance vs. S&P 500
Bogleheads 3 Fund Portfolio ETF Pies for M1 Finance
Traditional – Total Bond Market
Intermediate Term Treasury Bonds
Long Term Treasury Bonds
by Peter Foley
Sat Jun 24, 2023 6:58 pm
Forum: Personal Investments
Topic: How to execute a rebalancing strategy?
Replies: 9
Views: 1098

Re: How to execute a rebalancing strategy?

The unknown in this question is where are the assets held. There are no tax implications when rebalancing in tax deferred and Roth. There may be in taxable.

Also unknown - what is the OP's risk tolerance?
by Peter Foley
Thu Jun 22, 2023 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: USPS warning about mailing checks
Replies: 55
Views: 8497

Re: USPS warning about mailing checks

I talked to my local USPS delivery person, we know each other well. He advised not dropping bills with checks in the street drop boxes throughout the City of St. Paul. He recommended dropping envelopes with checks at the inside drop slot at one of the local post offices. He affirmed the fact that there have been issues with checks being "washed" and reissued to a different person with a different amount.
by Peter Foley
Tue Jun 20, 2023 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: What is your favorite retirement calculator and how can one get it?
Replies: 49
Views: 11938

Re: What is your favorite retirement calculator and how can one get it?

We did a review of a number of calculators at a Minnesota Bogleheads meeting (about 100 attendees).

Firecalc came out on top in terms of pre-retirement planning.
by Peter Foley
Mon Jun 19, 2023 11:07 pm
Forum: Personal Investments
Topic: What to Do When Planning to Retire
Replies: 62
Views: 9909

Re: What to Do When Planning to Retire

You have plenty in assets to retire and to delay taking social security. In your case it is the placement of those assets that complicates planning.

I too did a multiple year spreadsheet approach and it served me well. You can try running some Roth conversion scenarios using the Retiree Portfolio Model spreadsheet.

A starting point would be to aim for the top of the 12% tax bracket (about $89,500 in taxable income . . . about $116,000 in adjusted gross income). That is a target for doing Roth conversions for the next 2-3 years. Taxes and living expenses would be paid from your regular accounts.

Medicare B has a two year lookback so staying below $194,000 in Modified Adjusted Gross Income becomes a factor for you in a couple of years.
by Peter Foley
Wed May 03, 2023 10:45 pm
Forum: Personal Investments
Topic: Help Me Simplify my Portfolio
Replies: 13
Views: 2271

Re: Help Me Simplify my Portfolio

I respect (and echo) both livesoft's and Watty's answers. (They are both long time, knowledgeable, posters.) A simple start to this is to reduce the complexity in your retirement accounts because there are no tax consequences for doing so. While a 3 fund portfolio is the right answer for many investors it is not the only approach. Target retirement funds are not usually used in conjunction with other funds. Their goal is to create an asset allocation that is appropriate for the investor in terms of risk - need to take risk, ability to take risk, and willingness to take risk. When you add in additional funds you are essentially countermanding the approach of the target retirement fund you hold. For me, that would be the first decision point....
by Peter Foley
Sat Apr 22, 2023 9:12 am
Forum: US Chapters
Topic: Minnesota Bogleheads Spring Meeting: April 29, 2023
Replies: 2
Views: 2061

Re: Minnesota Bogleheads Spring Meeting: April 29, 2023

Just a reminder that the Spring meeting is next Saturday.

Of note: The plenary session is meant to be interactive - not a lecture. There are many aspects to estate planning and many attendees will have insights based on their personal experiences - be those experiences positive or negative. Family dynamics can make each experience unique. :happy or :(

Feel free to post some questions and comments here in advance.
by Peter Foley
Wed Apr 12, 2023 9:50 am
Forum: US Chapters
Topic: Minnesota Bogleheads Spring Meeting: April 29, 2023
Replies: 2
Views: 2061

Minnesota Bogleheads Spring Meeting: April 29, 2023

The spring meeting is scheduled for April 29, 2023. Our usual recent location, Ridgedale Library, Rohlf meeting room. 9:30 – 11:30 am. We hope that you are staying warm and that your March Madness brackets are going well… some of the games have been quite suspenseful! But never fear, let’s gather next month to find stability within our financial brackets, dribbling our dollars toward the hoop of a good life. Who All MN Bogleheads & guests What MN Bogleheads Spring meeting Where Minnetonka, Ridgedale Library, Rohlf Meeting Room (12601 Ridgedale Dr. Minnetonka, MN 55305) When Saturday, April 29, at 9:30am - 11:30am with optional social time until noon Why Discuss personal finances Agenda & Format Here is a brief version of the full ag...
by Peter Foley
Mon Apr 10, 2023 10:43 pm
Forum: Personal Investments
Topic: Sell these equities or hold
Replies: 12
Views: 1091

Re: Sell these equities or hold

There is no 20% income bracket.

There is a 15% bracket for long term capital gains, and a 20% long term capital gains bracket for high income earners. If this is the bracket you are referring to I would sell the equities at a loss.
by Peter Foley
Tue Apr 04, 2023 7:33 pm
Forum: Personal Investments
Topic: IRA portfolio suggestions
Replies: 11
Views: 846

Re: IRA portfolio suggestions

Essentially this is the much the same as how one might invest in a donor advised account.

You are investing on behalf of the charities you support so keep it simple and choose an AA you are comfortable with. The only difference here is that at some point your children might inherit whatever is left in the account. If you think that is a long term proposition, then you could be a bit more aggressive.

Do note that if you or you wife have a year with high health care costs you could probably withdraw funds from the IRA and pay little if any taxes. Is that a circumstance that would change how you use the money?
by Peter Foley
Sun Apr 02, 2023 6:24 pm
Forum: Investing - Theory, News & General
Topic: Looking for retirement withdrawal program [and withdrawal strategy]
Replies: 12
Views: 2368

Re: Looking for retirement withdrawal program

Given the Covid pandemic and its impact on various businesses/sectors over the past 3 years I would not use the past 3-5 years as a measure.

The Retiree Portfolio Model can do some of what you looking for, but it does not look at specific funds. It tends to look more at taxable versus tax deferred and Roth conversions. More tax planning than investment planning, but helpful with withdrawal strategies.
by Peter Foley
Fri Mar 31, 2023 10:27 am
Forum: Personal Investments
Topic: In lieu of Roth conversions...what about spending some of my IRA?
Replies: 13
Views: 1612

Re: In lieu of Roth conversions...what about spending some of my IRA?

ehh noted:
I note you do not have a Roth account. Arriving at the start of social security benefits with some balance between taxable, tax deferred and Roth is a good place to be. Gives you flexibility to meet unexpected or one-time expenses while controlling taxes.

As others have noted, using taxable or taxable and a bit of tax deferred money to meet ongoing expenses combined with some Roth conversions might be a better plan.
Exactly. It is best to forecast out the next 10 years in terms of income and taxes, years that will include SS benefits.
by Peter Foley
Fri Mar 31, 2023 10:20 am
Forum: Personal Consumer Issues
Topic: How long have you been in your current house?
Replies: 148
Views: 12404

Re: How long have you been in your current house?

12 years in this house - a single story house. 21 years in the house before that. Nearby neighborhoods with the reason for change being to go to one story living as we approached retirement. In Minnesota roof maintenance and ice dams are an issue for many older homes in the inner cities.
by Peter Foley
Thu Mar 30, 2023 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Tax withholding assistance/help
Replies: 17
Views: 1396

Re: Tax withholding assistance/help

You can opt to have additional funds withheld. That is the easy approach.
by Peter Foley
Sun Mar 26, 2023 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: RMD as a Charitable Distribution
Replies: 43
Views: 4028

Re: RMD as a Charitable Distribution

Celia wrote: Is your checking account titled as an IRA? If not, you are first withdrawing to a Taxable checking account, then making a charitable donation that can be included in your deductions, if you itemize. Yes it is. I only do a handful of checks each year from this account - all to 501(c) (3) organizations. I contacted them in advance to make sure I would receive a written donation receipt. I started this process a couple years ago and it has worked well. I purposefully set up this IRA for the purpose of doings QCD's. I maintain other retirement assets in a 457(b) account. Those withdrawals are taxable. With the tax law changes a few years ago limiting some itemized deductions, this was my way of getting credit for charitable contrib...