Search found 4273 matches

by Peter Foley
Sun Apr 22, 2018 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: I am 62 year old with no bonds now. Need advice please.
Replies: 12
Views: 1775

Re: I am 62 year old with no bonds now. Need advice please.

What I think ruralavalon is driving at is that it is not tax efficient to put one's bond allocation in taxable and hold equities in a 401k. A better approach would be to put your bonds in your 401k if the expense ratios are not too high and put a good portion of your $300K in equities in your taxabl...
by Peter Foley
Sun Apr 22, 2018 8:40 am
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 11
Views: 1179

Re: Minnesota BH Seasonal Main Meeting 4/28/18

Additional details from the moderator regarding the Bucket Strategy breakout session: "The Bucket Strategy"/ Overview/Mechanics/Pros and Cons Financial security in retirement is mostly about income. You can have millions in assets, but if you don't have an income system that works, how are you going...
by Peter Foley
Sat Apr 21, 2018 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: Rethinking old CD ladder
Replies: 11
Views: 1304

Re: Rethinking old CD ladder

CD's would not be my investment of choice in a taxable account unless I was approaching retirement or retired. If you need to hold non equities in a taxable account for AA reasons, my first choice would be a tax exempt bond fund. I-bonds would be my second choice. Knowing your age and years to retir...
by Peter Foley
Thu Apr 19, 2018 11:25 am
Forum: Investing - Help with Personal Investments
Topic: Tax-efficient fund placement?
Replies: 9
Views: 965

Re: Tax-efficient fund placement?

Whacker wrote: The general idea being we should try to save the Roth space for maximum growth, correct? Yes to the question posed above. Putting the taxable into CD's as recommended is fine. Interest rates for short term CD's are nearing the rate of inflation so one is basically maintaining buying p...
by Peter Foley
Wed Apr 18, 2018 5:24 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 11
Views: 1179

Re: Minnesota BH Seasonal Main Meeting 4/28/18

Additional information provided regarding the Roth IRA breakout session: Backdoor Roths / Mega Backdoor Roths: Rules, techniques and opportunities Backdoor Roth contributions of $5,500 per working individual ($6,500 for those over 50 years of age) are still permissible for 2018 under the new tax cod...
by Peter Foley
Mon Apr 16, 2018 8:01 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 11
Views: 1179

Re: Minnesota BH Seasonal Main Meeting 4/28/18

Any insight into how Wade Pfau's How Much Can I Spend in Retirement compares with recent books that have received good reviews?

For example: Living Off Your Money by McClung, and How to Make Your Money Last by Quinn.
by Peter Foley
Mon Apr 16, 2018 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Is capital gains paid at the state level as well?
Replies: 8
Views: 392

Re: Is capital gains paid at the state level as well?

Following up on earlier answers. Obviously some state do not have an income tax. Of those that do there are different starting points, two of the most common being Federal Adjusted Gross Income or Federal Taxable income. After those starting points states then apply their own rules.
by Peter Foley
Sun Apr 15, 2018 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax When Very Little Income
Replies: 7
Views: 943

Re: Capital Gains Tax When Very Little Income

Yes you are understanding it correctly. There is a concept called tax gain harvesting, taking capital gains when one's income is low, to avoid potential long term capital gains when one's income is higher.
by Peter Foley
Sun Apr 15, 2018 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Investing for a 1 year old
Replies: 9
Views: 1080

Re: Investing for a 1 year old

We invested for our kids using custodial accounts and EE bonds when they were very little (some 30 years ago). Then 10-15 years later the IRS changed the rules on the reporting of children's income, taxing it at the parent's level. Tough to plan so far in advance. Based on where we are today I would...
by Peter Foley
Sat Apr 14, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Need some IRA advice please
Replies: 8
Views: 614

Re: Need some IRA advice please

Regarding RMD's. During the first 5 years you are required to take out an average of about 4% per year. It starts out a little less than that, but for planning purposes 4% is a good starting point.
by Peter Foley
Fri Apr 13, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

kjsammy wrote: Can you tell me more about not converting everything and using an IRA instead of a Roth as a savings account? Since I will have pension and Social Security and RMD's wouldn't I be better off using a Roth as a saving account in advanced age or medical necessity? Conversion in your situ...
by Peter Foley
Fri Apr 13, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

My overall assessment is that you are in very good shape financially. Just a couple points that have not been mentioned. I would not hold a TIPs fund in a Roth. While you don't have a large holding it would be better to have such a fund in an IRA or 401k. Amid all the talk about Roth conversions I h...
by Peter Foley
Thu Apr 12, 2018 7:46 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 11
Views: 1179

Re: Minnesota BH Seasonal Main Meeting 4/28/18

The 2018 tax law changes breakout session is intended to provide a brief overview of the changes and solicit questions and strategies regarding how one might modify current practices in light of the change. The two moderators are really looking for input from attendees. A basic question is now that ...
by Peter Foley
Wed Apr 11, 2018 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: Tax emergency--Almost done filing with TurboTax but a couple things are wrong
Replies: 13
Views: 882

Re: Tax emergency--Almost done filing with TurboTax but a couple things are wrong

i'm not familiar with the on line version, but the CD version has a forms view option. You can click on that and view the forms you are going to file. With the CD version you can also save a pdf and look at the forms that way.
by Peter Foley
Wed Apr 11, 2018 8:38 pm
Forum: Personal Consumer Issues
Topic: Spain in May end
Replies: 32
Views: 1729

Re: Spain in May end

rocco wrote: I'd do a day in Madrid to see the Prado and Reina Sofia museums. Take a guided tour of the Prado, where for a bargain price you will learn so much more about Spain and its art. The bullet train runs from Madrid to Cordoba to Seville and takes a couple of hours to get from Madrid to Sevi...
by Peter Foley
Mon Apr 09, 2018 10:56 pm
Forum: Local Chapters and Bogleheads Community
Topic: Improving Local Boglehead Chapter Meetings
Replies: 19
Views: 1777

Re: Improving Local Boglehead Chapter Meetings

Retiredmarine: Some answers to your questions. The MN group has met quarterly for the last 6 to 8 years. Just this year the steering committee decided to go to 3 time per year. It is a lot of work to organize a meeting for this many people, and the size of the group has grown to a point that we have...
by Peter Foley
Mon Apr 09, 2018 2:58 pm
Forum: Local Chapters and Bogleheads Community
Topic: Improving Local Boglehead Chapter Meetings
Replies: 19
Views: 1777

Re: Improving Local Boglehead Chapter Meetings

I've been going to local MN BH meetings for almost 10 years. When I first started we met in restaurants for lunch. There were no plenary sessions, just a few small group discussions. Attendance was in the 20's to the low 30's. Attendance grew when we switched to library locations and started using a...
by Peter Foley
Mon Apr 09, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Easily digestible info/blog on finances for spouse?
Replies: 35
Views: 2371

Re: Easily digestible info/blog on finances for spouse?

If she has any interest in current issues, Michael Kitces.
by Peter Foley
Mon Apr 09, 2018 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Recordkeeping system for retirees
Replies: 25
Views: 2606

Re: Recordkeeping system for retirees

I don't trust the web. I keep electronic copies of critical files on CD. I also have a back up hard drive that I do not keep connected to my computer except when I am backing up files or retrieving files.
by Peter Foley
Mon Apr 09, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Questions on inherited IRA/401k
Replies: 8
Views: 614

Re: Questions on inherited IRA/401k

One can do qualified charitable distributions from an IRA but not from a 401k. I honestly don't know if that applies to an inherited IRA. I also don't know if it is relevant to your situation.

Some 401k's have very good stable value funds. Those can be good alternatives to bonds.
by Peter Foley
Sat Apr 07, 2018 10:47 pm
Forum: Personal Consumer Issues
Topic: Is it very hard to learn Spanish?
Replies: 65
Views: 4067

Re: Is it very hard to learn Spanish?

cfs wrote:
Good luck y gracias por leer
Me parece que a usted le gusta la poesía de Antonio Machado. Usted también se hace el camino al andar?
by Peter Foley
Sat Apr 07, 2018 11:03 am
Forum: Personal Consumer Issues
Topic: Is it very hard to learn Spanish?
Replies: 65
Views: 4067

Re: Is it very hard to learn Spanish?

I don't want to be disrespectful of others who have posted their opinions on this topic, but many things stated in this thread are just that opinions, not facts. I will quote a couple of the better, and based on my academic experience, more factual responses. Rocco wrote: Although Spanish is conside...
by Peter Foley
Sat Apr 07, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: Why 401k options are limited?
Replies: 10
Views: 769

Re: Why 401k options are limited?

There is another reason. Some employers are not very savvy about personal finance and investing. They may get a proposal from a salesperson to set up a 401k and go for it. A sales pitch can be that it is easy for the employer to administer and not cost the employer much, if anything, to set it up. I...
by Peter Foley
Fri Apr 06, 2018 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: Updated with questions about transferring work simple IRA to frozen simple IRA
Replies: 30
Views: 1285

Re: My work in starting a simple IRA --questions

My wife did consulting on the side and we set up a Simple for her. There can be employer and employee contributions. You can contribute more than to a regular IRA as JW mentions. I think the question I would ask is why did the employer choose American Funds and do they expect to have other fund offe...
by Peter Foley
Fri Apr 06, 2018 5:15 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 4/28/18
Replies: 11
Views: 1179

Re: Minnesota BH Seasonal Main Meeting 4/28/18

The Buckets breakout session should be interesting. There is a recent thread on this referencing Morningstar's Ms. Bentz: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=246198&newpost=3867446&view=unread#unread "The Bucket Approach To Retirement Allocation" http://news.morningstar.com/article...
by Peter Foley
Fri Apr 06, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: Are we in bear territory?
Replies: 49
Views: 6089

Re: Are we in bear territory?

Historically (traditionally?) investors have looked at new highs or lows to predict a longer trend. So if the next drop were to a lower level than the earlier drops (breaking past the so called support level) we could be in for a bear market. Then again, maybe not. IMHO you only really know when you...
by Peter Foley
Thu Apr 05, 2018 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Inheritance is getting complicated
Replies: 24
Views: 3488

Re: Inheritance is getting complicated

If you can compartmentalize the inheritance a bit it might not seem so complicated. Roth is Roth. Totally tax free. Cash it in and put it to use where ever you like if you want. Taxable (aka non-qualified) gets a stepped up basis so there should be little implication regarding your taxes if you deci...
by Peter Foley
Thu Apr 05, 2018 9:02 am
Forum: Investing - Help with Personal Investments
Topic: Who uses Schwab and what are the up and downsides?
Replies: 41
Views: 2715

Re: Who uses Schwab and what are the up and downsides?

I've used Schwab for over 20 years. I would recommend them to others. I've never really sensed much of a sales pitch, a fact I appreciate. I used to get quarterly or semi annual calls asking me if there was anything I needed. Very low key and I felt I could politely say no without closing any doors ...
by Peter Foley
Tue Apr 03, 2018 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to simplify investments,--Please help
Replies: 15
Views: 1694

Re: Trying to simplify investments,--Please help

I'm not familiar with disability insurance payments. Is that taxable income? What is your current marginal tax rate? What do you expect that rate to be when you start withdrawals? Where I heading with this is the potential for Roth conversions. I (again) second Duckie's well thought out recommendati...
by Peter Foley
Mon Apr 02, 2018 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: How did you file your income taxes?
Replies: 77
Views: 3802

Re: How did you file your income taxes?

I used Turbo Tax Deluxe. I do returns for myself and my two daughters' families. I've used Turbo tax for 20+ years. While I can use the Turbo tax program to estimate taxes for the upcoming year, I have found it easy and fairly accurate to use the "two year comparison form" that Turbo Tax produces. I...
by Peter Foley
Mon Apr 02, 2018 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing target date fund
Replies: 8
Views: 658

Re: Choosing target date fund

Your choice should not just be based on the target date and your age. It should also reflect your risk tolerance. Check the glide paths for the target date funds you are considering. How comfortable are you holding xx% equities when you retire? Also note that you can start with one target date fund ...
by Peter Foley
Sun Apr 01, 2018 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion Q - new tax brackets
Replies: 8
Views: 983

Re: Roth conversion Q - new tax brackets

The calculations you are doing determines your "earned" taxable income - that is the number usually referred to in the marginal rate tables (aka tax brackets). Most individuals will have some taxable interest they need to add to the pension + Roth conversion you are proposing. In addition, as Silk M...
by Peter Foley
Wed Mar 28, 2018 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Reduce future RMD, Manage Retirement Income and Taxes
Replies: 10
Views: 1194

Re: Reduce future RMD, Manage Retirement Income and Taxes

Copernicus wrote: Point 2: We have a DAF, and plan to donate significant portion to charity in future. We too have a donor advised fund. However, as a result of changes to the tax code, in 2018 and beyond I do not see us itemizing deductions. Therefore, when we reach RMD's it will be more advantageo...
by Peter Foley
Wed Mar 28, 2018 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Reduce future RMD, Manage Retirement Income and Taxes
Replies: 10
Views: 1194

Re: Reduce future RMD, Manage Retirement Income and Taxes

I think plan A is reasonable. A couple other considerations that may or may not be relevant to your situation. 1. Set up contingent beneficiaries for the bigger IRA. (This supposes that there are children to whom one would want to bequeath all or part of an IRA.) Leave instructions for surviving spo...
by Peter Foley
Tue Mar 27, 2018 10:59 pm
Forum: Investing - Theory, News & General
Topic: Capital gains and tax brackets
Replies: 8
Views: 1513

Re: Capital gains and tax brackets

retired jg Thanks for the reference. I didn't realize this was what the OP was looking for. I created a couple stacked bar charts like the one referenced a few years ago for a MN Bogleheads meeting. Admittedly, mine wasn't quite as refined. I'll copy the tfb's version for future reference. Again tha...
by Peter Foley
Tue Mar 27, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: Capital gains and tax brackets
Replies: 8
Views: 1513

Re: Capital gains and tax brackets

I suggest you check out Numbers Unlimited. They have pdf charts for tax years 2017 and 2018. Capital gains rates and tax brackets are two of the many financial details in their useful tables.
by Peter Foley
Mon Mar 26, 2018 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Trust income distributions to save tax
Replies: 14
Views: 1038

Re: Trust income distributions to save tax

I certainly agree with having a competent person help the OP read through and understand the terms of the trust. Backtracking a bit - there are many reasons to set up a trust. Avoiding some estate taxes and probate costs are two reasons often mentioned here, but another very common reason is to exer...
by Peter Foley
Sun Mar 25, 2018 9:00 pm
Forum: Investing - Theory, News & General
Topic: Honest Feedback on yet another model portfolio
Replies: 47
Views: 2962

Re: Honest Feedback on yet another model portfolio

With the specialties category this reminds me a bit of the permanent portfolio. Overall I think it is a little light in bonds. Shave 5% off the small cap tilt and 5% off emerging market and put it in total bond and it is fairly mainstream.
by Peter Foley
Sat Mar 24, 2018 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Will and Life Estate...looking for some basics
Replies: 3
Views: 393

Re: Will and Life Estate...looking for some basics

I think there is one more avenue you could explore here. How was the mental acuity of you mother-in-law's mother? Was she able to understand the implications of creating the life estate? My mother suffered from dementia for a number of years before dying in her early 90's. I managed her finances and...
by Peter Foley
Wed Mar 21, 2018 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Review
Replies: 13
Views: 1247

Re: Asset Allocation Review

I like Duckie's plan a lot. Here are my minor deviations: I'm okay with 80% stocks, but would prefer 70% until about the age of 50. Then slowly work your way to 50/50 a couple years before you retire. I'm not as fond of international as many who post here. 20% of stocks is my high end. I'm personall...
by Peter Foley
Mon Mar 19, 2018 7:35 pm
Forum: Personal Consumer Issues
Topic: What kind of bike do I need and how much should I spend?
Replies: 44
Views: 2739

Re: What kind of bike do I need and how much should I spend?

A lot of ground has already been covered in this thread. I work in a bike shop restoring older bikes and also do volunteer work fixing bikes for kids [the Free Bikes for Kidz organization (FB4kz)]. My recommendation is based on fixing and rebuilding over1000 adult bikes over the past few years. You ...
by Peter Foley
Mon Mar 19, 2018 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Financial checklist after passing of a spouse
Replies: 22
Views: 2142

Re: Financial checklist after passing of a spouse

Your Complete Retirement Planning Road Map by Ed Slott has a number of very useful checklists. The checklists are not only about retirement planning, the include general account owner's checklists, beneficiary checklists etc. You might find one of them useful. Edit: Link to beneficiary form checkli...
by Peter Foley
Sat Mar 17, 2018 10:52 pm
Forum: Investing - Theory, News & General
Topic: Hedging strategies to battle sequence of return risk?
Replies: 16
Views: 1327

Re: Hedging strategies to battle sequence of return risk?

If you are truly looking at hedging strategies, buying long term out of the market puts on a major index like the S&P 500 would be one way to do this. One could put 2% of their money in puts year after year and even if they we never exercised you only have a 2% loss. That might lower one's return fr...
by Peter Foley
Sat Mar 17, 2018 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating taxable income for 2018 (next year's filing)
Replies: 3
Views: 428

Re: Estimating taxable income for 2018 (next year's filing)

I don't want to discourage you from putting $3,000 or so in a 457 plan as you will save 22% in federal taxes on most of that. At the income level you are proposing, the savings in total dollars are not great, a little over $500. I think it might also be beneficial if you hold mutual funds in taxable...
by Peter Foley
Sat Mar 17, 2018 10:25 am
Forum: Personal Finance (Not Investing)
Topic: help! I want to treat heirs equally
Replies: 38
Views: 5267

Re: help! I want to treat heirs equally

Sandtrap wrote: Here's the link: Beyond the Grave: The Right Way and the Wrong Way of Leaving Money to Your Children (And Others) by Gerald M. Condon https://www.amazon.com/gp/product/08873 ... UTF8&psc=1 I have a second revised edition in paperback with a 2014 copyright date. With all the changes i...
by Peter Foley
Sat Mar 17, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Helping 20yr old son set up Roth
Replies: 27
Views: 2087

Re: Helping 20yr old son set up Roth

Schwab has low minimums for retirement accounts. I would look there.
by Peter Foley
Fri Mar 16, 2018 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: help! I want to treat heirs equally
Replies: 38
Views: 5267

Re: help! I want to treat heirs equally

Another point made by Beyond the Grave is that what parents think is fair and equitable is not necessarily the same as what the children think. There is poignant story about a rift created between siblings because of the parents' decision to divide assets equally. One sibling had received much more ...
by Peter Foley
Fri Mar 16, 2018 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Portfolio Help
Replies: 12
Views: 1316

Re: Retirement Portfolio Help

If you already have a tax deferred account, you could possibly increase your bond holdings in that account and hold less in bonds in taxable. Alternatives would include using a tax free bond fund, buying at least some I-bonds, or use a short term bond fund for asset protection purposes. A short term...
by Peter Foley
Thu Mar 15, 2018 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing
Replies: 11
Views: 805

Re: Rebalancing

There are soooo many factors involved that it is hard to comment. If you need the money to live on and plan to withdraw from it in the near future, a conservative approach is warranted. If you are saving for your heirs that is entirely different.
by Peter Foley
Wed Mar 14, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: Early Retirement and Withdrawals and AA
Replies: 15
Views: 1456

Re: Early Retirement and Withdrawals and AA

KlangFool wrote: Every year, you convert your IRA to Roth at whatever amount that gives you the best tax efficiency. I like this suggestion. You will have to keep in mind the all of the rules regarding withdrawals from Roths, but using up some very low/zero tax space with TIRA conversions makes sens...