Search found 4486 matches

by Peter Foley
Thu Sep 20, 2018 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring at 55 - regular 401k vs. ROTH 401k....which?
Replies: 10
Views: 1059

Re: Retiring at 55 - regular 401k vs. ROTH 401k....which?

bradpevens wrote: Many plans allow you to withdraw (401) money without penalty before 59.5 IF you in fact retire from that company after age 55. You will want to know for certainty what the rules are in your case. Correct and good advice. Do note, however, that contributions can be withdrawn from a ...
by Peter Foley
Wed Sep 19, 2018 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3495

Re: General 2018 Tax Question

While the question implies changes to the federal tax form, some states with income taxes had to make changes as well to their laws and/or their forms. Minnesota failed to pass tax reform to continue general alignment with federal law. I expect Minnesota taxes to be much more difficult to complete i...
by Peter Foley
Wed Sep 19, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Philanthropy 101
Replies: 13
Views: 816

Re: Philanthropy 101

I would recommend either Fidelity or Schwab over Vanguard because of lower minimums. Involving the children is a good next step, one with which we have had limited success. Both our children are married with families and have the ability to do some charitable donations - certainly not at our level, ...
by Peter Foley
Wed Sep 19, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Please review my wife's 457 allocations
Replies: 3
Views: 299

Re: Please review my wife's 457 allocations

With the expense ratios you posted I would stick with the Target Retirement fund and the S&P 500 fund. If you want a small cap fund, you can get a better one with Vanguard in your Roth. You might want to check on the interest rate of the stable value fund. If it pays more than the rate of inflation,...
by Peter Foley
Tue Sep 18, 2018 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: Please review my wife's 457 allocations
Replies: 3
Views: 299

Re: Please review my wife's 457 allocations

At a minimum could you please list the expense ratios of the funds you wife owns.

It is hard to advise without a complete picture of all your investments, not just the 457 account.

It is likely that the stable value fund and a domestic bond fund would also be good choices.
by Peter Foley
Sun Sep 16, 2018 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 7
Views: 965

Re: Portfolio Review

First, welcome to the forum. Second, thank you for serving in the US Military. You have a lot of ability to take risk so you can be a bit aggressive in terms of your AA if you wish. A couple comments about how you are invested that will perhaps induce others to chime in. 1. Many believe that Roths s...
by Peter Foley
Fri Sep 14, 2018 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Living trusts and relabeling accounts
Replies: 33
Views: 2348

Re: Living trusts and relabeling accounts

Again, the lawyer should advise. However, before you talk to the lawyer study up on inherited IRAs. You may want to leave them out of the trust with your wife as beneficiary and your children as contingent beneficiaries. If you are going to name the trust as a beneficiary get legal help so that it i...
by Peter Foley
Fri Sep 14, 2018 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking advice/improvements
Replies: 4
Views: 528

Re: Seeking advice/improvements

I personally think you are a little too conservative but not off target by much for a couple your age. If you were to change your Roth accounts to the 2045 fund that would give you more stocks in Roth. That is a relatively minor change but it puts more stocks in Roth which is where you want them for...
by Peter Foley
Fri Sep 14, 2018 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Need help about asset allocation
Replies: 8
Views: 672

Re: Need help about asset allocation

After one has decided on an asset allocation strategy rebalancing to maintain that strategy should become part of the equation. One way to rebalance is to redirect future contributions to an asset class that has become under weighted. I understand your post to describe just that. You want x% in inte...
by Peter Foley
Thu Sep 13, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking advice/improvements
Replies: 4
Views: 528

Re: Seeking advice/improvements

If you could add as a detail what your current asset allocation is and what you would like it to be that would be helpful.
At your ages a 60/40 allocation would be moderate and a 50/50 a bit conservative, but not really conservative. Where do you want to end up?
by Peter Foley
Wed Sep 12, 2018 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - I would like to manage portfolio going forward
Replies: 4
Views: 451

Re: Portfolio Review - I would like to manage portfolio going forward

I like Exit's proposed simplification. If you were to look at my posts you would see that I am a believer in some diversification in non equities. (There is a recent thread titled "One bond fund is enough?" ) https://www.bogleheads.org/forum/viewtopic.php?f=1&t=258618 My opinion is that some low cos...
by Peter Foley
Wed Sep 12, 2018 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - I would like to manage portfolio going forward
Replies: 4
Views: 451

Re: Portfolio Review - I would like to manage portfolio going forward

Lots of information. I'll provide a few thoughts and bump the thread for others to chime in as well. Asset allocation: I think 70/30 is fine for your age. I would be inclined to rebalance by redirecting future contributions. There was a long thread recently about "age in bonds" and one conclusion (b...
by Peter Foley
Wed Sep 12, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Simplyfing a Portfolio - Looking for Advice
Replies: 11
Views: 1231

Re: Simplyfing a Portfolio - Looking for Advice

Even without details my guess is that you are rightly concerned about a lot of long term capital gains in your taxable account - especially given your marginal tax rate. If you are well diversified with these holdings and no single mutual fund is disproportionately large and narrow in terms of the a...
by Peter Foley
Mon Sep 10, 2018 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: One bond fund is enough?
Replies: 16
Views: 1687

Re: One bond fund is enough?

I think it is prudent to have more than one bond fund for one's non equity allocation. Possibilities include the funds Vanguard mentioned but also TIPS, Stable Value Funds, and I-Bonds. I think if one adds a bit of inflation protection to compliment Total Bond Fund, two funds is enough. (For me that...
by Peter Foley
Mon Sep 10, 2018 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: When to Tap Into SS
Replies: 14
Views: 1656

Re: When to Tap Into SS

I found the calculator to be very useful and would recommend trying it. If you do need the money and cannot delay long, do you have sufficient income with your wife working and tapping into an IRA? If this is possible delaying a bit while at a low tax rate may be to your advantage? Without details m...
by Peter Foley
Sun Sep 09, 2018 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: New to Donor Advised Funds, need guidance
Replies: 22
Views: 1543

Re: New to Donor Advised Funds, need guidance

Some unconventional thoughts . . . How to invest the donor advised fund. Just pick something mainstream and ignore it. Once the money is in the donor advised fund it is not your money. You donated it to a fund which is a charity. I would advise you not to include it it any of your asset allocation c...
by Peter Foley
Sun Sep 09, 2018 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Parents with Retirement
Replies: 34
Views: 3954

Re: Helping Parents with Retirement

In response to your questions: 1. I would be tempted to use a short term bond fund or a CD ladder for part of their bond allocation. Going that route would provide a bit more inflation protection. 2. This depends on their marginal tax rate. If they are in the 12% bracket, withdrawals from taxable if...
by Peter Foley
Sat Sep 08, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Helping my dad with his IRA
Replies: 16
Views: 1216

Re: Helping my dad with his IRA

I would suggest splitting the money up and doing a relatively short term CD ladder. Part of the money could go into an on line savings account and the rest in a couple different term CDs. Ally Bank is usually quite competitive in term of rates.
by Peter Foley
Sat Sep 08, 2018 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: New to Donor Advised Funds, need guidance
Replies: 22
Views: 1543

Re: New to Donor Advised Funds, need guidance

jebmke wrote: If you have an IRA, keep in mind that Qualified Charitable Distributions can be made from IRAs once you reach RMD age. For some people this is a more effective way to give to charity at that point. So, as you look at funding your DAF, think about whether you want to fund it for donatio...
by Peter Foley
Sat Sep 08, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Confirmation on backdoor Roth withdrawals of contribution
Replies: 19
Views: 844

Re: Confirmation on backdoor Roth withdrawals of contribution

I found your question confusing. For those pre 59.5, these are the rules: UNDER AGE 59.5 FIVE YEAR CONVERSION HOLDING PERIOD NOT MET Contributions: Tax-No; Penalty-No Conversions: Tax-No; Penalty-Yes (Taxable Portion) Conversions: Tax-No ;Penalty-No (Nontaxable Portion) Earnings: Tax-Yes; Penalty-Ye...
by Peter Foley
Thu Sep 06, 2018 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Year End Roth Moves
Replies: 10
Views: 1200

Re: Year End Roth Moves

Addressing the question "Convert TIRA or 401k?" I would be inclined to hold on to at least some the 401k if you have access to a good stable value fund. A stable value fund that pays in excess of the rate of inflation is a good counterbalance to a total bond fund that might take a bit of a hit if in...
by Peter Foley
Thu Sep 06, 2018 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on asset allocation
Replies: 8
Views: 893

Re: Advice on asset allocation

Personal opinion - I think an asset allocation in the range of 60/40 to 40/60 is about right for someone your age who intends to work 10 more years. While I would favor the higher end of that allocation for the next 5 years, I concur with your assessment that you don't have to take a lot of risk. I ...
by Peter Foley
Wed Sep 05, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: How to model a portfolio
Replies: 10
Views: 749

Re: How to model a portfolio

I will rephrase this a bit. Is there a site where you can plug in a portfolio and see how it did for the past 30 years? Portfolio Visualizer can do backtesting. www.portfoliovisualizer.com I'm personally not aware of any site that can model a return over the next 30 years. There are aspects of the R...
by Peter Foley
Wed Sep 05, 2018 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Time to look at SS [When should I take Social Security?]
Replies: 55
Views: 4935

Re: Time to look at SS

One consideration that does not often come up in these discussions is one's birthday. If you have a birthday late in the year and are doing Roth conversions, it may be to your advantage taxwise to wait until the next year. This is especially true if you are in one of the income windows where SS Bene...
by Peter Foley
Thu Aug 30, 2018 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 34
Views: 2668

Re: Roth IRA 5 year rule

Here is the table version of the Roth Conversion chart that many here reference: Re: Roth IRA Rules - Table Approach Posted by: KAWill (IP Logged) Date: October 14, 2010 11:57PM Roth IRA Distribution Table UNDER AGE 59.5 FIVE YEAR CONVERSION HOLDING PERIOD NOT MET Contributions: Tax-No; Penalty-No C...
by Peter Foley
Thu Aug 30, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Inheritance—Advice Requested
Replies: 63
Views: 6910

Re: Inheritance—Advice Requested

Fianna wrote: With so much unknown, it is helpful for me to hear general rules of thumb as well as specific pieces of advice. For now, it seems that converting pieces of the tax-deferred accounts to Roth but staying inside my tax bracket is a good way to go. With so many unknowns, including health a...
by Peter Foley
Wed Aug 29, 2018 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: high RMD withdraw from 401k question
Replies: 31
Views: 3335

Re: high RMD withdraw from 401k question

You need a withdrawal strategy and spending plan. You can do it in a spreadsheet as Celia suggests or just write it out in a Word document. As Alan suggests you need to level out your tax obligations over the next decade or so. I use a running 5 year plan. It looks like this: 2017: Assumption – Husb...
by Peter Foley
Tue Aug 28, 2018 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Need your advice , please
Replies: 12
Views: 1551

Re: Do I have it right

There are a number of approaches to investing the Boglehead way. What follows is just a bit of background. One of the first things to do is determine your asset allocation. It should be based on your ability to take risk, your need to take risk, and your willingness to take risk. Use low cost index ...
by Peter Foley
Tue Aug 28, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Financing college, gifting to children, capital gains
Replies: 13
Views: 764

Re: Financing college, gifting to children, capital gains

I'm not following some of this either. Do note that the gift exclusion is $15,000 per individual in 2018. That means each parent could gift each child $15,000. Leaving the 529 plan discussion aside, there are many ways to work with this approach. A Uniform Gift to Minors Act account would be a start...
by Peter Foley
Mon Aug 27, 2018 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance—Advice Requested
Replies: 63
Views: 6910

Re: Inheritance—Advice Requested

Wow! Inherit a good chunk of money and the advice pours in. Most of it on target with how I would suggest approaching this. Just a few tidbits: I agree with retiredjg's first two points. (I don't disagree with the third but the first two are really spot on.) Yes put the bonds in tax deferred. You ha...
by Peter Foley
Mon Aug 27, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing question...
Replies: 15
Views: 630

Re: Rebalancing question...

If you have a 457 account, all you bond allocation should be there (tax deferred) with the Roth being entirely stock mutual funds (tax free). While you might want to change the mix you have in the two accounts to accomplish the above, you are no where close to needing to rebalance for AA purposes. I...
by Peter Foley
Sun Aug 26, 2018 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: When I die, what % of expenses should my survivor assume
Replies: 16
Views: 1841

Re: When I die, what % of expenses should my survivor assume

dodecahedron: I have much more limited experience in this aspect of finance and taxes than you do, so please let me know if this scenario is unusual. In the year the spouse passes, the tax bill may be substantially less because some SS benefits or perhaps pension benefits (50% survivor benefits is n...
by Peter Foley
Sun Aug 26, 2018 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Re: Need advise with the investment Plan
Replies: 8
Views: 779

Re: Need advise with the investment Plan

The array of funds you listed and the percentages you propose are all very mainstream. I see no problems there. Ac Camillus infers, the issue not addressed is where to hold these funds. At a minimum, bond funds are better held in a tax deferred account if you have one. Picking funds is only part of ...
by Peter Foley
Sat Aug 25, 2018 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: IRA inherited from younger spouse
Replies: 25
Views: 2521

Re: IRA inherited from younger spouse

I find this to be an interesting discussion. I'm going to do a session at a upcoming BH meeting and beneficiary designations and inheriting IRAs is one of the topic I will cover. I have found it confusing in my research as well.
by Peter Foley
Fri Aug 24, 2018 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Withdrawal Inquiry
Replies: 7
Views: 657

Re: IRA Withdrawal Inquiry

I can't see any reason to take withdrawals from the traditional IRA in lieu of the inherited IRA.
by Peter Foley
Thu Aug 23, 2018 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation
Replies: 6
Views: 536

Re: Bond Allocation

Personal opinion. I think you are fine.

There was a long recent thread about age in bonds not being a good rule of thumb. Among the many, many opinions and analyses, one person did a study showing that age - 18 in bonds was ideal.
by Peter Foley
Wed Aug 22, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend Reinvestment
Replies: 7
Views: 644

Re: Dividend Reinvestment

I have no problem with reinvesting dividends and capital gains until one nears the time where withdrawals from the stock/mutual fund holdings are likely. At that point you want all of your gains to be long term capital gains for tax simplicity if nothing else. In some circumstances it would make sen...
by Peter Foley
Wed Aug 22, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Am I Wrong for being 100% Equities ?
Replies: 62
Views: 5626

Re: Am I Wrong for being 100% Equities ?

In the eyes of many people, myself included, you've "won the game". Given that, why not take 5 years of cash needs in retirement off the table?

You do not "need" to take the level of risk that a 100% stock portfolio entails.
by Peter Foley
Mon Aug 20, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Naive rebalancing question
Replies: 16
Views: 1350

Re: Naive rebalancing question

Hi Rob. Yes as others have stated one would rebalance both on market ups and downs. I don't know if you have ever looked at it closely, but when one has a fairly moderate AA it really takes a lot of market movement to trigger a 5% band. The last time I rebalanced during a market downturn was in 2008...
by Peter Foley
Sun Aug 19, 2018 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Your major and investing/finance?
Replies: 99
Views: 5073

Re: Your major and investing/finance?

BA in Spanish, minor in education MA in Spanish Literature, minor in education PhD Hispanic Linguistics There is a fair amount of psychology required for teaching, my first career. Behavioral psychology, some statistics and math were integral to the process management and personnel management (total...
by Peter Foley
Thu Aug 16, 2018 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawal rate and tax-adjusted asset allocation
Replies: 6
Views: 765

Re: Withdrawal rate and tax-adjusted asset allocation

I would not take a withdrawal rate and apply it across taxable, tax deferred and tax free. My starting point would be how much do I need to take from my retirement portfolios to cover my annual expenses. (Annual expenses - SS benefits - pension = gap which needs to be filled from retirement savings....
by Peter Foley
Thu Aug 16, 2018 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth conversions a no-brainer for me?
Replies: 22
Views: 2187

Re: Are Roth conversions a no-brainer for me?

I would be inclined to do Roth conversions to the top of the 12% bracket prior to taking SS benefits. You don't mention what your annual living expenses are. My guess is that once you start taking SS benefits you will have some combination of ss benefits + pension + taxable account or deferred accou...
by Peter Foley
Thu Aug 16, 2018 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Advice on re-balancing efforts
Replies: 6
Views: 703

Re: Advice on re-balancing efforts

Prior exchange: Peter Foley wrote: ↑Wed Aug 15, 2018 8:17 pm The easiest way to do this with your current holdings is to change your wife's Target Retirement account to an earlier date with a higher percentage of bond holdings. Blimpalot Thanks. But I don't think that will quite work. The Target Dat...
by Peter Foley
Wed Aug 15, 2018 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Cash or mortgage for house entering retirement?
Replies: 10
Views: 829

Re: Cash or mortgage for house entering retirement?

My personal preference is to be debt free. However, would this essentially exhaust your taxable account? If, yes, and if you are heavily invested in tax deferred with little or nothing in a Roth, it might be to your advantage to hold some cash in taxable for Roth conversions. There are a lot of "ifs...
by Peter Foley
Wed Aug 15, 2018 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Need basic advice on organizing portfolio
Replies: 9
Views: 1057

Re: Need basic advice on organizing portfolio

With your assets I would talk to someone at Schwab, Vanguard or Fidelity and ask them for a recommendation for a balanced portfolio with a XX/XX asset allocation invested in low cost index funds. With Schwab you could probably meet with someone in person if you sere serious about transferring your a...
by Peter Foley
Wed Aug 15, 2018 8:33 pm
Forum: Personal Consumer Issues
Topic: Plan us a trip !
Replies: 17
Views: 2094

Re: Plan us a trip !

I think any trip destination should consider what activities are available for your children and what might you expect them to remember. No way I would do Costa Rica. (I was just there last January and not a good place for small children.) You do not want to do long airline flights and have long cus...
by Peter Foley
Wed Aug 15, 2018 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: "Open Social Security" calculator: feature requests, bug reports, etc
Replies: 195
Views: 17811

Re: "Open Social Security" calculator: feature requests, bug reports, etc

tc101 wrote: Given the factors I mentioned in the last post, I wonder how useful this calculator is? It might lead to more confusion than clarity for most people, and might lead to some people taking SS earlier than would be best for them. What it calculates is just one minor part of the info to be ...
by Peter Foley
Wed Aug 15, 2018 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on re-balancing efforts
Replies: 6
Views: 703

Re: Advice on re-balancing efforts

The easiest way to do this with your current holdings is to change your wife's Target Retirement account to an earlier date with a higher percentage of bond holdings.
by Peter Foley
Wed Aug 15, 2018 4:19 pm
Forum: Personal Consumer Issues
Topic: Books - Your 3 Best - (Nonfiction, Fiction, Financial/Investing)
Replies: 48
Views: 5392

Re: Books - Your 3 Best - (Nonfiction, Fiction, Financial/Investing)

Fiction: 1984 - Orwell 100 Years of Solitude - Garcia Marquez Lord of the Rings - Tolkien Poetry - Romancero Gitano - Gabriel Garcia Lorca Non Fiction: Learned Optimism - Martin Seligman Gifts Differing - Isabel Briggs Myers A Grammar of Contemporary English - Quinn Runner Up: The Presidents Club - ...
by Peter Foley
Tue Aug 14, 2018 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: 61 Year old in need of advice
Replies: 14
Views: 1583

Re: 61 Year old in need of advice

A SIMPLE IRA is another option for a self employed person. It works well if you have no employees. Deferral limits are not as high as a Solo 401k.