Search found 4197 matches

by Peter Foley
Mon Feb 19, 2018 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusting a Taxable Account
Replies: 18
Views: 807

Re: Tax Adjusting a Taxable Account

dbr wrote/asked: dbr » Mon Feb 19, 2018 12:55 pm Peter Foley wrote: ↑Mon Feb 19, 2018 12:37 pm I do tax adjust my numbers as an exercise to make sure I don't drift too much from my planned AA. I tax adjust my tax deferred accounts on a marginal tax rate basis. Adjusting taxable is more difficult as ...
by Peter Foley
Mon Feb 19, 2018 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusting a Taxable Account
Replies: 18
Views: 807

Re: Tax Adjusting a Taxable Account

I do tax adjust my numbers as an exercise to make sure I don't drift too much from my planned AA. I tax adjust my tax deferred accounts on a marginal tax rate basis. Adjusting taxable is more difficult as you have pointed out. I do mine in an overly simplistic way which is good enough for AA conside...
by Peter Foley
Mon Feb 19, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account advice
Replies: 3
Views: 363

Re: Taxable account advice

It sounds as if you have a mix of investments in tax deferred accounts. These holdings are relevant to the Fidelity holdings. If, overall, your AA is appropriate for your age and risk tolerance, the only real concern would be if the individual stock holdings represented a disproportionate share of y...
by Peter Foley
Mon Feb 19, 2018 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Is it wise for us to make a one-time lump sum mortgage payment?
Replies: 23
Views: 1175

Re: Is it wise for us to make a one-time lump sum mortgage payment?

The advice from someone who is debt averse, me, is predictable. Make the payment. Comparing the payment to potential stock market returns is like comparing apples to oranges. A better comparison would be to a AAA bond maturing in 20 to 30 years. 4.25% compounded return is great in today's environmen...
by Peter Foley
Sun Feb 18, 2018 9:24 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet May 6, 2017
Replies: 16
Views: 2740

Re: Minnesota Bogleheads Meet May 6, 2017

Recent meetings have been at the Edina Southdale Library, 2nd floor, main meeting room. The next meeting will be there too -- April 28, 2018 9:30 to 11:30am. I'm on the planning committee so feel free to send me a personal message if you have questions. There will be a broadcast mail about 2 weeks t...
by Peter Foley
Sun Feb 18, 2018 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement investment advice for parent
Replies: 6
Views: 541

Re: Retirement investment advice for parent

IMHO 70/30 is too aggressive for someone in their mid 50's with little retirement savings. Exception - if that person has a pension and that pension together with SS benefits would cover most of her annual expenses, 70/30 would be fine.
by Peter Foley
Sun Feb 18, 2018 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Retired with backdoor roth quesiton
Replies: 5
Views: 293

Re: Retired with backdoor roth quesiton

I agree with Lafder that it make sense to do the Roth conversion over time, keeping an eye on your tax bracket as you do so. As mentioned it is not a co called "backdoor conversion." In terms of mechanics, I was able to do Roth conversions from a Schwab TIRA to an existing Schwab Roth on line. I do ...
by Peter Foley
Sun Feb 18, 2018 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Pre- vs post-tax saving: Am I thinking it wrong?
Replies: 25
Views: 1623

Re: Pre- vs post-tax saving: Am I thinking it wrong?

I think the basic premise the OP presents is correct. There are other considerations, of course. For example, the decision on when to collect SS benefits may be made based on projected taxable and tax free income during the time period from age 62 to age 70. Marginal tax rates as applied to SS benef...
by Peter Foley
Fri Feb 16, 2018 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Moving my simple IRA. Investment options for my children?
Replies: 10
Views: 417

Re: Moving my simple IRA. Investment options for my children?

If you read enough of the threads about "where" relative to Vanguard, Schwab, and Fidelity, you are likely to come to the opinion that Schwab tends to offer a bit better customer service. Disclaimer - while I hold a number of Vanguard funds, I've used Schwab for well over 20 years.
by Peter Foley
Fri Feb 16, 2018 7:58 pm
Forum: Investing - Theory, News & General
Topic: Which book for an 18 year old who is asking about investing?
Replies: 39
Views: 2261

Re: Which book for an 18 year old who is asking about investing?

The Only Investment Guide You'll Ever Need by Andrew Tobias. Solid, broad ranging financial advice and an easy read.
by Peter Foley
Fri Feb 16, 2018 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: High earners need help with IRAs
Replies: 9
Views: 1193

Re: High earners need help with IRAs

Based on information provided there is no reason not to max out the 401k .
by Peter Foley
Fri Feb 16, 2018 1:00 pm
Forum: Personal Consumer Issues
Topic: Minnesota lake resorts summer 2018
Replies: 32
Views: 2210

Re: Minnesota lake resorts summer 2018

The answer depends on what you are looking for. Until recently we owned two lake cabins in Minnesota - one on Voyagers National Park near the Canadian border and one in central Minnesota near Mille Lacs. Northern lakes are about 5 hours from MPLS by car, central Minnesota lakes about 2.5 hours. Metr...
by Peter Foley
Fri Feb 16, 2018 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion strategies for 2018 and beyond?
Replies: 18
Views: 2413

Re: Roth conversion strategies for 2018 and beyond?

Someone can correct me if I am wrong but I believe that after the age of 59.5 contributions can be removed from a Roth w/o penalty or tax even if they were the result of conversions. Earning on conversions may be taxed if one does not wait for 5 years. If you are in good health I would suggest delay...
by Peter Foley
Thu Feb 15, 2018 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: High earners need help with IRAs
Replies: 9
Views: 1193

Re: High earners need help with IRAs

Just to expand the topic a bit . . . It would seem to me that one would take maximum advantage of a tax deferred savings plan at that level of income. 401k, solo 401k, 403b, 457b, SIMPLE, SEP, IRA, etc. IRA's have lower retirement plans maximums than other tax deferred options and there are deductio...
by Peter Foley
Wed Feb 14, 2018 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: How to Calculate (Estimated) Taxes for ROTH IRA Conversion?
Replies: 8
Views: 793

Re: How to Calculate (Estimated) Taxes for ROTH IRA Conversion?

rosemary

I suggest you run the numbers through i-orp or the Retiree Portfolio Model. Both model Roth conversions.
by Peter Foley
Mon Feb 12, 2018 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Capital gains taxes when selling joint property?
Replies: 5
Views: 594

Re: Capital gains taxes when selling joint property?

So you own it jointly. Does that mean as joint tenants or tenants-in-common? That may have an impact on the tax situation.
by Peter Foley
Mon Feb 12, 2018 6:09 pm
Forum: Personal Consumer Issues
Topic: Driving a rental car in Western Europe
Replies: 46
Views: 1535

Re: Driving a rental car in Western Europe

I've rented and driven in Ireland, France, Germany, Spain and Italy. Please note the following comment by CMF300: It's been a while, but the last time I rented a car in Europe, American Express did NOT cover cars that were rented or driven into Italy. We noted the same thing when we last rented 5 ye...
by Peter Foley
Mon Feb 12, 2018 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 16607

Re: Number at which to stop worrying

Lots of unknowns here, a critical one being how you expect to spend your retirement years. If you want to see the world that is more expensive than being happy with extended family (grandchildren) and inexpensive hobbies. Yes grandchildren can be expensive, but usually that is a optional expense. I ...
by Peter Foley
Sun Feb 11, 2018 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to Roth IRA now or wait?
Replies: 6
Views: 396

Re: Convert to Roth IRA now or wait?

retiredjg wrote: Whatever you convert will be taxed at your marginal tax rate which is often the same as your tax bracket. If you are still working, you may be at your highest tax rate ever - very bad time to convert. . . . There is really no way to answer your question with the information provided...
by Peter Foley
Sun Feb 11, 2018 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance Help
Replies: 4
Views: 526

Re: Inheritance Help

The second distribution caught my attention. Holding a six figure sum in cash for 5 years may not be a good plan. That six figure range is great $100K to $900+K. The tax rates on trust income is high. You should have a conversation about diversification and taxation of trust income with the person m...
by Peter Foley
Sun Feb 11, 2018 12:07 pm
Forum: Personal Consumer Issues
Topic: Do you think it is worth the money to travel to warm weather destinations during the winter?
Replies: 77
Views: 6350

Re: Do you think it is worth the money to travel to warm weather destinations during the winter?

We live in Minnesota. I think the answer is yes. :happy We really need a break about this time of year.
by Peter Foley
Sun Feb 11, 2018 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning and Pre or Post Tax
Replies: 6
Views: 609

Re: Retirement Planning and Pre or Post Tax

There are so many factors involved that it is hard to say. Certainly the safest (i.e., most conservative) approach is to use post tax. I periodically do a pre tax and post tax analysis of my asset allocation. Because we hold only stocks in our Roth accounts and almost all of of non equities are in t...
by Peter Foley
Sat Feb 10, 2018 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 51058

Re: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]

Two good summaries of the 2018 tax reform bill are by Michael Kitces and Mike Piper. (This is not the February budget deal.)

https://www.kitces.com/blog/final-gop-t ... trategies/

https://obliviousinvestor.com/2018-tax-brackets/
by Peter Foley
Sat Feb 10, 2018 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: your assets - now verses end of year?
Replies: 38
Views: 2362

Re: your assets - now verses end of year?

Do note that if you did a Roth Conversion in December when the market was high, you can recharacterize that 2017 Roth if you have not yet filed your taxes for 2017. This option will not be available in 2018 because of the tax law change.
by Peter Foley
Thu Feb 08, 2018 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-S Question
Replies: 6
Views: 437

Re: 1099-S Question

There was a recent post with a similar question. Gil replied. I think Gil is an attorney, perhaps specializing in estates or taxes. In that case there was a life estate and the value of the property received a stepped up basis upon death. If this applies to your case, the cost basis would be one hal...
by Peter Foley
Thu Feb 08, 2018 2:01 pm
Forum: Investing - Theory, News & General
Topic: Best Funds for Roth IRA
Replies: 4
Views: 473

Re: Best Funds for Roth IRA

You could combine the two into one with Vanguard's Total Stock Market Index. While it is not the question you asked, your overall asset allocation is one of the most significant determiners of return over long periods of time. An often advised approach is to balance the Roth IRA stock mutual fund ho...
by Peter Foley
Wed Feb 07, 2018 9:08 pm
Forum: Investing - Theory, News & General
Topic: "3 Investing Mistakes to Avoid"
Replies: 20
Views: 3379

Re: "3 Investing Mistakes to Avoid"

Trying to control things you can't and recency bias are two of the three. Detail and the third are provided in the well written article.

Thanks Taylor.
by Peter Foley
Tue Feb 06, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Where to keep money to get to Social Security at age 70?
Replies: 14
Views: 1226

Re: Where to keep money to get to Social Security at age 70?

If your current military retirement pay doesn't push you into the 22% bracket, I would at least fill the 12% bracket with IRA withdrawals as suggested. The balance could go into a CD ladder. A $25k 12 month CD at Ally Bank currently pays 2%. You can probably build a short ladder that almost keeps up...
by Peter Foley
Mon Feb 05, 2018 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawing from IRA accounts before age 70
Replies: 3
Views: 555

Re: Withdrawing from IRA accounts before age 70

You do not state how much you have in a tax deferred account. It is likely to your benefit to draw from a tax deferred account to the top of the 12% bracket if you have a substantial portion of your assets there. Another approach would be to sell stocks and take some long term capital gains and pay ...
by Peter Foley
Mon Feb 05, 2018 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Newbie
Replies: 17
Views: 1694

Re: Turbo Tax Newbie

cjniemiec We had a situation similar to yours including Roth conversions, dividends, capital gains, and a rental property with depreciation. Turbo Tax Deluxe was able to handle it all. There will be a lot of information to enter the first year you do this but in subsequent years it will be very easy.
by Peter Foley
Sun Feb 04, 2018 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: Start of Retirement Jan 2018 - Allocation for Volatility?
Replies: 11
Views: 1424

Re: Start of Retirement Jan 2018 - Allocation for Volatility?

Irish Moss wrote My intent is to use an inverse glide path, increasing my equity allocation by 1% each year until I get to about 60% equities, so I won't be staying at 46% equities forever. This is a fairly conservative approach. It is along the line of a "Rising Equity Glide Path" as described by W...
by Peter Foley
Sat Feb 03, 2018 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: AA recommendation: outsized cash position, 6-8 years till retirement
Replies: 15
Views: 1277

Re: AA recommendation: outsized cash position, 6-8 years till retirement

My first thought was along the same lines as Lou - use taxable money to pay off the mortgage. My inclination, however, would be to pay it down to a point where you can pay it off around the time you plan to retire. I would also recommend that you do a back door Roth so that you have a tax free bucke...
by Peter Foley
Sat Feb 03, 2018 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Newbie
Replies: 17
Views: 1694

Re: Turbo Tax Newbie

Regarding a Roth conversion. First Turbo Tax will ask if you withdrew money from an IRA, then it will ask you what you did with it, if you select something other than spent it, it then asks you for more details. It is pretty straight forward on Turbo Tax if you answer the question what did you do wi...
by Peter Foley
Sat Feb 03, 2018 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Sequence of returns for early retiree
Replies: 14
Views: 2422

Re: Sequence of returns for early retiree

I too think that Wade Pfau's Rising Equity Glide Path makes a lot on sense when a poor sequence of returns could greatly impact portfolio longevity.
by Peter Foley
Wed Jan 31, 2018 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax CD Install Problem/Solved
Replies: 2
Views: 321

Re: TurboTax CD Install Problem/Solved

Good to know. I installed TT from a CD this morning. I had to backtrack and couple of times and restart it to get it to install properly.
by Peter Foley
Wed Jan 31, 2018 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Doubling of Standard Deduction--Really??
Replies: 56
Views: 6983

Re: Doubling of Standard Deduction--Really??

The doubling of the standard deduction pretty much offsets the elimination of the loss of personal exemptions unless one's standard deductions were quite high. I have run a few scenarios using 2017 tax law and 2018 tax law and the results are close, with a slight edge to the 2018 law. Scenarios are ...
by Peter Foley
Wed Jan 31, 2018 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Best place to park cash
Replies: 32
Views: 2480

Re: Best place to park cash

We are currently using the Ally no penalty CD as well.
by Peter Foley
Tue Jan 30, 2018 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Depreciation Recapture
Replies: 12
Views: 1005

Re: Rental Depreciation Recapture

jebmke wrote: You are missing the depreciation that lowers the cost basis. If the original cost was $165K and the depreciation taken in prior years was, say, $20K, then the basis is $145K and the total gain is 35+20 = $55K. Of the total gain, $20K is recaptured as ordinary income and the $35 is cons...
by Peter Foley
Mon Jan 29, 2018 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: 10 Things to do for Financial Wellness
Replies: 17
Views: 2374

Re: 10 Things to do for Financial Wellness

Lady Geek wrote: - Be prepared when bad things happen. You should have: 1. A will 2. A durable power of attorney 3. Medical power of attorney 4. Advanced Health Care directive The above documents are prepared by an attorney experienced in elder law license to practice in your state. You can usually ...
by Peter Foley
Mon Jan 29, 2018 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: sensible plan for ira withdrawals?
Replies: 2
Views: 304

Re: sensible plan for ira withdrawals?

There is a long wait in terms of earning back the cost of paying taxes now. Have you run the numbers using i-orp or the Retiree Portfolio Model? Conversion during a number of low income (low marginal tax rate) years is usually advised if you are going to be in a higher tax bracket with RMDs. I'm sur...
by Peter Foley
Mon Jan 29, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Checkup
Replies: 32
Views: 2320

Re: Investment Checkup

retiredjg wrote: It's my opinion that people with pensions should not be as aggressive about putting money into tax-deferral as people who do not have pensions. Your pension is going to "push against" falling into a very low tax bracket in retirement. I'm not saying not to save as much but to save m...
by Peter Foley
Sat Jan 27, 2018 11:35 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement
Replies: 3
Views: 665

Re: Early Retirement

Again, welcome. While more details would be helpful, a couple of your questions are fairly basic. Vanguard tends to be the lowest cost fund family so I would move my IRA there. No need to move your 401k unless the options provided are not good. Some 401ks have access to stable value funds which can ...
by Peter Foley
Sat Jan 27, 2018 9:33 pm
Forum: Personal Consumer Issues
Topic: Machu Picchu and Galapagos in late March 2019
Replies: 29
Views: 1724

Re: Machu Picchu and Galapagos in late March 2019

jodydavis wrote: 1. Re: altitude sickness, it's impossible to predict how you will react. Some folks have no problem, others get hit really hard, and it's not correlated to physical fitness. I think you are right to go to the sacred valley first to acclimatize, and then do Cusco on the way out. We d...
by Peter Foley
Fri Jan 26, 2018 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: How do others handle their withdrawals or distributions
Replies: 21
Views: 2707

Re: How do others handle their withdrawals or distributions

bcboy57 wrote: My question now is do people here take out $’s in a set amount every month or other month or whatever , or take money out only as needed ? The mechanics are fairly simple, we move funds to our checking account from either brokerage or tax deferred to cover about 4-6 months projected e...
by Peter Foley
Fri Jan 26, 2018 9:34 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 1-27-18
Replies: 5
Views: 702

Re: Minnesota BH Seasonal Main Meeting 1-27-18

Just an FYI. The library opens at 9:00 am. If you are so inclined we could always use a little help with set up around 9:10 or so.
by Peter Foley
Thu Jan 25, 2018 11:33 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation in Early Retirement--a different Perspective
Replies: 18
Views: 2670

Re: Asset Allocation in Early Retirement--a different Perspective

I'm sorry to disagree but age in bonds is an over applied, much overused, rule of thumb. It is okay when you are young and accumulating but it is an overly conservative approach for many close to retirement and those already in retirement.
by Peter Foley
Thu Jan 25, 2018 9:05 pm
Forum: Personal Consumer Issues
Topic: How much house can we afford (Madison WI area)?
Replies: 25
Views: 2326

Re: How much house can we afford (Madison WI area)?

I would be tempted to look in Waunakee as well. The commute to West Madison/Middleton is not bad, the schools are okay, and there has been a lot of recent housing development in various price ranges. My daughter and her family live there and it is a very friendly, welcoming community.
by Peter Foley
Thu Jan 25, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation in Early Retirement--a different Perspective
Replies: 18
Views: 2670

Re: Asset Allocation in Early Retirement--a different Perspective

Perhaps what you are looking for is the research done on "Rising Equity Glide Paths" by Wade Pfau and Michael Kitces. While it speaks more to being conservative around the years you retire so that you don't suffer too much from a poor sequence of returns, it also has elements of a bucket approach.
by Peter Foley
Thu Jan 25, 2018 12:16 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Seasonal Main Meeting 1-27-18
Replies: 5
Views: 702

Re: Minnesota BH Seasonal Main Meeting 1-27-18

For those interested - I had a chance to look at an outline of Mr. Bishop's presentation. He has some interesting data (and projections) of where the US economy is in terms of the business cycle and central bank policy. These are both important factors when considering how one might choose to alloca...