Search found 4529 matches

by Peter Foley
Sat Oct 20, 2018 5:25 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Fall Main Meeting 10/27/18
Replies: 12
Views: 1266

Re: Minnesota BH Fall Main Meeting 10/27/18

Additional details regarding two of the breakout sessions: Lee Title: A Healthy Way to be Overweight: The Rationale for Favoring the Health Care Sector in your Non-Core Holdings. Description: Participants in this breakout session will be given the back story on why one might favor the healthcare sec...
by Peter Foley
Sat Oct 20, 2018 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Heavy Loss in Stable Value Fund of 401k investments
Replies: 31
Views: 3391

Re: Heavy Loss in Stable Value Fund of 401k investments

Interesting thread. We have the majority of our non equities in stable value funds so the reported incident will inspire me to take a look under the hood. Hindsight is 20/20 of course but I would not have parked short term money in a stable value fund. Both my wife and I have access to government st...
by Peter Foley
Fri Oct 19, 2018 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: Learning about all this financial stuff
Replies: 12
Views: 946

Re: Learning about all this financial stuff

For books a good starting point is "The Only Investment Guide You Will Ever Need" Andrew Tobias

There are a few thread about good first books to read.
by Peter Foley
Wed Oct 17, 2018 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Did you retire because you hit your number?
Replies: 71
Views: 6216

Re: Did you retire because you hit your number?

Hitting my number was only one of many factors. I retired a year and a half after qualifying for an unreduced pension and that was about two years after hitting my number. The biggest factor for me was not financial, rather personal and emotional. My father died at age 70.5 six months after he retir...
by Peter Foley
Wed Oct 17, 2018 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: What do you consider 'enough'?
Replies: 91
Views: 9426

Re: What do you consider 'enough'?

When your bond allocation covers your retirement needs.
by Peter Foley
Tue Oct 16, 2018 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: can't use testamentary trust as beneficiary, what next?
Replies: 30
Views: 4415

Re: can't use testamentary trust as beneficiary, what next?

This was an interesting thread. Worth noting.
by Peter Foley
Mon Oct 15, 2018 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Fixed Income Allocation in Early Retirement
Replies: 7
Views: 1270

Re: Help with Fixed Income Allocation in Early Retirement

Overall I like your plan. I would agree that holding onto the stable value makes sense. Given the current interest rate environment and the fact that you are starting withdrawals, I would favor shorter term and intermediate term bond funds over total bond market. Since you would be the first in line...
by Peter Foley
Sun Oct 14, 2018 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Rules
Replies: 8
Views: 1004

Re: Roth Rules

Here is a partial answer that I copied from a post a number of years ago: 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 Conversi...
by Peter Foley
Sat Oct 13, 2018 10:33 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K allocation
Replies: 4
Views: 353

Re: Help with 401K allocation

Go back to where you started. You should have a large cap US fund, an extended market fund (if available), an international fund, and a bond fund. The list you provided does not have an extended market fund so you can add a mid cap to your small cap to replicate total stock market. There is a ratio ...
by Peter Foley
Sat Oct 13, 2018 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K allocation
Replies: 4
Views: 353

Re: Help with 401K allocation

Your adviser needlessly over complicated your portfolio. A complicated portfolio may necessitate professional help (and the fees that go with that help) whereas a simple portfolio does not.
by Peter Foley
Sat Oct 13, 2018 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Will or Trust?
Replies: 9
Views: 887

Re: Will or Trust?

One of the reasons to have a trust is a need to have a trustee control assets after death. Is that an issue here?

Does Texas have transfer on death deeds?
by Peter Foley
Sat Oct 13, 2018 4:17 pm
Forum: Investing - Theory, News & General
Topic: Savings and investments - overall household view of asset allocation
Replies: 15
Views: 867

Re: Savings and investments - overall household view of asset allocation

While I do not know this for sure, it seems the poster is from the UK. I have limited (dare I say nonexistent understanding) of UK pensions. I do believe there is some form of National Health Insurance, but I don't know to what extent there is financial risk for those insured. So perhaps less risk t...
by Peter Foley
Fri Oct 12, 2018 8:52 pm
Forum: Investing - Theory, News & General
Topic: 401k/IRA vs. Roth IRA
Replies: 9
Views: 653

Re: 401k/IRA vs. Roth IRA

If I understood the question correctly . . .

Because Roth withdrawals, both contributions and earnings, may be tax free, it makes sense to put those assets (investment portfolios) with the best chance for gains in one's Roth.
by Peter Foley
Fri Oct 12, 2018 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on a large Roth conversion if we have a 30-40% correction.
Replies: 22
Views: 2334

Re: Opinions on a large Roth conversion if we have a 30-40% correction.

There are numerous other factors to consider such as: Will you spend your Roth during your lifetime or is this for your heirs? Are RMD's an issue? Medicare B premium increases for some individuals, perhaps 2 increases for some couples. Estate planning for those potentially subject to state and feder...
by Peter Foley
Thu Oct 11, 2018 2:38 pm
Forum: Personal Consumer Issues
Topic: What would you do with some bulk silver?
Replies: 41
Views: 2441

Re: What would you do with some bulk silver?

If he retained a receipt for purchase he could potentially sell them for a loss. Otherwise I would sell it all except for a couple coins to pass along to the kids as historical pieces. I like the idea of having the kids do the research and holding on to a couple the most valuable. A good educational...
by Peter Foley
Wed Oct 10, 2018 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Advice
Replies: 6
Views: 1542

Re: Retirement Advice

I would not roll it all over into a single IRA if you have access to good stable funds that pay more than the rate of inflation. Stable value funds are a good alternative to bond funds, especially in a time of rising interest rates.
by Peter Foley
Wed Oct 10, 2018 10:41 pm
Forum: Investing - Theory, News & General
Topic: Potential “tax wash” Roth conversions during big market drops?
Replies: 11
Views: 963

Re: Potential “tax wash” Roth conversions during big market drops?

So what is an RBD? Edit to clarify. 1. Sometimes when acronyms are used readers do not understand them. Please use them sparingly. 2. "Really Bad Day" lacks definition. There was a really bad day in 1929, another one in 1987, and another one shortly after 9/11/2001. I would not do a Roth conversion ...
by Peter Foley
Wed Oct 10, 2018 10:38 pm
Forum: Investing - Theory, News & General
Topic: Bond Market Index vs Stable Value?
Replies: 6
Views: 691

Re: Bond Market Index vs Stable Value?

Both my wife and I have access to stable value funds that pay more the the rate of inflation. Those funds make up about 60% of our non equities. We also have a bond fund, TIPS and I-bonds.
by Peter Foley
Wed Oct 10, 2018 4:20 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Fall Main Meeting 10/27/18
Replies: 12
Views: 1266

Re: Minnesota BH Fall Main Meeting 10/27/18

The Minnesota Department of Revenue has updated their website in anticipation of the 2018 tax filing season. Copied from an e-mail I received: Minnesota Department of Revenue October 9, 2018: Minnesota Department of Revenue Updates 2019 Filing Season for Tax Year 2018 FAQ Minnesota Department of Rev...
by Peter Foley
Tue Oct 09, 2018 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation re: Social Security
Replies: 13
Views: 1028

Re: Allocation re: Social Security

If you were to consider SS Benefits like a bond in terms of your asset allocation you would invest more aggressively than Bogle's "age in bonds" recommendation. Your bond holdings would be inflated and you would hold more in stocks to compensate.

I too subtract SS from expenses.
by Peter Foley
Tue Oct 09, 2018 10:51 pm
Forum: Investing - Help with Personal Investments
Topic: 4% rule question
Replies: 22
Views: 3104

Re: 4% rule question

It makes no sense to me. Taxable is usually a mix of assets. Some percentage of a taxable account is basis. Some percentage may be long term capital gains, which may or may not be taxed depending on one's tax bracket. Some percentage counts as ordinary income (interest earned). Tax deferred account ...
by Peter Foley
Sat Oct 06, 2018 7:08 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Fall Main Meeting 10/27/18
Replies: 12
Views: 1266

Re: Minnesota BH Fall Main Meeting 10/27/18

A timely breakout will be on the topic of tax law changes. Federal tax law changed for 2018, Minnesota tax law did not. Breakout description: Title: Tax reform. Preparing for your 2018 tax return Description: We will review the tax reform law passed last year and look at how it is likely to impact y...
by Peter Foley
Fri Oct 05, 2018 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Help -- rollover of 403B and 457
Replies: 3
Views: 272

Re: Help -- rollover of 403B and 457

krow36 wrote: If you roll over your 457 account to an IRA, you will loose the unique bonus of the 457—which is the no penalty at distribution after leaving your employer, at any age. This is my argument as well for not rolling over 457 accounts. If you have given any thought to retiring before age 5...
by Peter Foley
Fri Oct 05, 2018 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Seeking Better Simplification
Replies: 15
Views: 1470

Re: Portfolio Review - Seeking Better Simplification

My personal approach - not necessarily one endorsed by BH philosophy. I think a minimum is 4 funds. Domestic equity, international equity, a well diversified US bond fund and a non equity fund that provides some inflation protection. That fund can be a stable value fund or TIPs. If you are thinking ...
by Peter Foley
Fri Oct 05, 2018 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Swap to a Roth 401k?
Replies: 12
Views: 1107

Re: Swap to a Roth 401k?

I would make the conversion in an unusually low income year such as the one you are experiencing.
by Peter Foley
Thu Oct 04, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Is it wrong to have too many funds?
Replies: 9
Views: 591

Re: Is it wrong to have too many funds?

It is not "wrong" for you. It may be wrong for someone else if they have to manage your investments because you are unable to do so.

I think this is especially important consideration for older investors where one member of the family has handled the finances.
by Peter Foley
Wed Oct 03, 2018 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Seeking Better Simplification
Replies: 15
Views: 1470

Re: Portfolio Review - Seeking Better Simplification

I'm in agreement with bloom2708. A rule of thumb is that holdings of less than 5% do not add much diversification and are not large enough to impact the yield of one's total portfolio. Paring down your IRA and Roth to a couple low cost funds each would be a good start.
by Peter Foley
Mon Oct 01, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Is allocation to CD a mistake?
Replies: 8
Views: 1112

Re: Is allocation to CD a mistake?

I too think CD's are a good choice. Another possibility for a portion of the non equity allocation would be a stable value fund available in your 401k or 457 account. You may have a fund that pays in the neighborhood of 3%.
by Peter Foley
Mon Oct 01, 2018 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Help me help my parents with Medicare/Medigap, ACA, and Roth conversion questions
Replies: 6
Views: 703

Re: Help me help my parents with Medicare/Medigap, ACA, and Roth conversion questions

Picking up on Celia's comments: In addition, I suggest you (or they) list their expected income sources and income amounts for each year from 2019 through your mom being age 71. Then estimate the taxes for each year. They will need to have some income to qualify for an ACA plan but having too much w...
by Peter Foley
Sat Sep 29, 2018 10:51 pm
Forum: Personal Consumer Issues
Topic: Can you Help? Life stages: 55-65-75-85
Replies: 17
Views: 2246

Re: Can you Help? Life stages: 55-65-75-85

What Color . . continued. Happiness Happiness is a fairly universal goal. Bolles and Nelson* also examine happiness in retirement and describe approaches to happiness, pleasure, engagement and meaning, based on the scientific studies of Martin Seligman. Paraphrasing from their book: Pleasure is the ...
by Peter Foley
Sat Sep 29, 2018 7:35 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Fall Main Meeting 10/27/18
Replies: 12
Views: 1266

Re: Minnesota BH Fall Main Meeting 10/27/18

The Roth IRA topic is really broad and it would be helpful to know what facets of Roths and Roth conversions are most of interest. In a very broad sense here are potential subtopics: 1. Would you invest differently in a Roth? 2. Why would you do a Roth conversion? (Multiple possibilities here.) 3. H...
by Peter Foley
Sat Sep 29, 2018 7:26 pm
Forum: Personal Consumer Issues
Topic: Can you Help? Life stages: 55-65-75-85
Replies: 17
Views: 2246

Re: Can you Help? Life stages: 55-65-75-85

I think it is fairly obvious to pursue those things you can do health wise fairly early on. A book that might be helpful is What Color is Your Parachute for Retirement by Boles and Nelson. There are chapters on identifying your strengths, ways to live, and happiness as well as some financial tips. I...
by Peter Foley
Fri Sep 28, 2018 5:17 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Fall Main Meeting 10/27/18
Replies: 12
Views: 1266

Re: Minnesota BH Fall Main Meeting 10/27/18

The format for this meeting will be a bit different from the last few. There will be a short presentation and two breakout sessions with about a half dozen topics to choose from in each session. More details to come soon.
by Peter Foley
Thu Sep 27, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing theory
Replies: 15
Views: 1436

Re: Rebalancing theory

I use the +/- 5% approach to rebalancing and have rarely had to sell A and buy B to rebalance. Maybe twice over the past 10 years. I'm retired so I do take my AA into consideration when I do withdrawals. I use that same approach to "rebalance" between US and International.
by Peter Foley
Thu Sep 27, 2018 3:26 pm
Forum: Investing - Theory, News & General
Topic: Don't Fear the Reaper (RMDs) - White Coat Investor blog post
Replies: 65
Views: 7547

Re: Don't Fear the Reaper (RMDs) - White Coat Investor blog post

randomguy wrote: It all comes down to your assumptions. If your only two choices are taxable first or tax deferred first. Taxable first tends to be the winning strategy. Once you open up the possibilities of blended withdrawal schemes (money from taxable, tax deferred, roth,...) you end up with a lo...
by Peter Foley
Wed Sep 26, 2018 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Allocating Personal Investements
Replies: 10
Views: 1086

Re: Allocating Personal Investements

Again I agree with Duckie about NOLCX - that is the only decent option. 457 plans have a real advantage if you plan to retire before age 59.5. You can draw money from a 457 plan without penalty after you leave that employer. (I had a 457 plan.) So if you plan to retire early it is a good plan to kee...
by Peter Foley
Wed Sep 26, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Non-spousal Inherited IRA
Replies: 18
Views: 1411

Re: Non-spousal Inherited IRA

If your sister is currently contributing to a IRA or a 401k I would encourage her to continue to do so. A simple approach is set up the inherited IRA as a stretch IRA. Pick an amount that is more than the RMDs and will fill up the tax deferred portion of your sister's current IRA. While one wouldn't...
by Peter Foley
Wed Sep 26, 2018 2:17 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA Conversion Ladder before 59.5
Replies: 25
Views: 1538

Re: Roth IRA Conversion Ladder before 59.5

In your analysis I think you are failing to distinguish between the conversion amount and the earnings. The following might be helpful. I highlighted the line in question: Re: Roth IRA Rules - Table Approach Posted by: KAWill (IP Logged) Date: October 14, 2010 11:57PM Roth IRA Distribution Table UND...
by Peter Foley
Wed Sep 26, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: Don't Fear the Reaper (RMDs) - White Coat Investor blog post
Replies: 65
Views: 7547

Re: Don't Fear the Reaper (RMDs) - White Coat Investor blog post

A backdrop to some of this discussion is the recommendations given regarding how to do Roth conversions. One piece of advice fairly universally given is to pay the taxes on the conversion from taxable account funds. Getting back to the original post, substantial taxable account assets are needed to ...
by Peter Foley
Tue Sep 25, 2018 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Allocating Personal Investements
Replies: 10
Views: 1086

Re: Allocating Personal Investements

Duckie provides a good detailed plan for you to follow. If you are at all hesitant because of all the changes recommended, at a minimum you should get rid of the higher cost funds you and your wife own. When you have so many good low cost funds available there is no reason to pay more than .5% in fe...
by Peter Foley
Tue Sep 25, 2018 10:49 pm
Forum: Investing - Help with Personal Investments
Topic: Introduction and some questions!
Replies: 13
Views: 1337

Re: Introduction and some questions!

Congratulations. Like JBTX I think your withdrawal rate is a little too high for someone so young. I would aim for a withdrawal rate of about 3.5% until you start drawing Social Security. The difference in lifestyle between a $120,000/year draw and a $112,000/year draw is not great. Do look for a be...
by Peter Foley
Mon Sep 24, 2018 11:07 pm
Forum: Investing - Theory, News & General
Topic: Don't Fear the Reaper (RMDs) - White Coat Investor blog post
Replies: 65
Views: 7547

Re: Don't Fear the Reaper (RMDs) - White Coat Investor blog post

I don't disagree with the quote presented, but a very small percentage of the population is in the 37% federal marginal tax bracket. A larger portion of the population does not want to move from the 12% bracket to the 22% marginal bracket, or to the 24% bracket where Medicare B premiums increase as ...
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: 1132

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: 3732

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: 879

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: 327

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: 327

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: 1019

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: 2501

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...