Search found 4674 matches

by Peter Foley
Sat Jan 19, 2019 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Consolidation of Multiple Retirement Accounts
Replies: 8
Views: 577

Re: Consolidation of Multiple Retirement Accounts

There are also options to withdraw from a 403b after age 55. You might want to research that. A university hospital likely has a pretty secure 457b account. You might want to check both plans regarding their stable value funds. These are sometimes good options for part of one's bond allocation. Havi...
by Peter Foley
Sat Jan 19, 2019 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: 401k - withdraw all at once? check my math
Replies: 11
Views: 683

Re: 401k - withdraw all at once? check my math

Schwab would also be a good option. They have low minimums. There are offices both in Minneapolis and St. Paul if you find that appealing. I would be inclined to move it to a brokerage like Schwab and take about a third and invest in a one year and a two year CD. As mentioned you have to look at SS ...
by Peter Foley
Sat Jan 19, 2019 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: My Withdrawal Strategy - Poke holes in it
Replies: 18
Views: 2074

Re: My Withdrawal Strategy - Poke holes in it

IMHO a good withdrawal strategy needs flexibility. OP wrote: - My order of tapping the accounts (spend down) would be ; Cash account --> Taxable accounts -->Tax deferred --> Roth Withdrawing from a mix of accounts (and Roth conversions) will likely produce the most tax efficient approach over a peri...
by Peter Foley
Sat Jan 19, 2019 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Investment advice - mixed thoughts
Replies: 14
Views: 1050

Re: Investment advice - mixed thoughts

I am of the opinion that one should have a minimum of 10% in bonds. If you don't have a tax deferred account, I-Bonds are a good choice.
by Peter Foley
Sat Jan 19, 2019 9:41 am
Forum: Investing - Help with Personal Investments
Topic: What To Do With Our Money?
Replies: 4
Views: 750

Re: What To Do With Our Money?

There are some higher yield savings options that would be good choices. Ally Bank is very competitive.
by Peter Foley
Fri Jan 18, 2019 11:13 pm
Forum: Personal Consumer Issues
Topic: 11 days in Europe...Budget and logistical advice please
Replies: 90
Views: 4700

Re: 11 days in Europe...Budget and logistical advice please

I would be inclined to take the fast rain to Normandy, the Alsace, or Provence. If Provence, I would rent a car and visit a few of the smaller cities. Lots of French citizens take vacations in August. Tourist destinations might be crowded and understaffed. September is a better month to visit if tha...
by Peter Foley
Fri Jan 18, 2019 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Help updating portfolio for 2019.
Replies: 14
Views: 1844

Re: Help updating portfolio for 2019.

Only rebalancing in taxable accounts result in a taxable event. Many investors rebalance only (or primarily) in tax deferred accounts or Roths so as to avoid taxable events. Note: wash sales may be an issue with tax deferred and Roth but that is beyond the question being asked.
by Peter Foley
Thu Jan 17, 2019 10:51 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Main Meeting 1/26/19
Replies: 2
Views: 311

Re: Minnesota BH Main Meeting 1/26/19

I expect the panel will also consider risk tolerance with respect to asset allocation. Need to take risk, willingness to take risk, and ability to take risk are all important factors.
by Peter Foley
Thu Jan 17, 2019 10:44 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Help Request - Windfall
Replies: 12
Views: 1491

Re: Investment Help Request - Windfall

Your Roth should be 100% stock funds - it is post tax money. Bonds should be in tax deferred/pre-tax accounts like an IRA.
by Peter Foley
Thu Jan 17, 2019 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard options for Roth IRA
Replies: 9
Views: 983

Re: Vanguard options for Roth IRA

Some combination of total stock market and total international would be my recommendation as well. I would start with the total stock market and add international once Brexit is finalized.
by Peter Foley
Wed Jan 16, 2019 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Help me pick a retirement date. Or enough is enough?
Replies: 33
Views: 4090

Re: Help me pick a retirement date. Or enough is enough?

livesoft wrote (partially in jest I believe) How about on 2/22/22 which is a date many people have planned for retirement? Actually I think choosing a date can be quite strategic. Choosing to retire a day or two into a pay period might extend one's sick leave. Taking vacation rather than cashing it ...
by Peter Foley
Mon Jan 14, 2019 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help updating portfolio for 2019.
Replies: 14
Views: 1844

Re: Help updating portfolio for 2019.

Many here believe that rebalancing once a year is enough. There are a wide range of opinions. One approach is to only rebalance when your asset allocation is off by 5% between stocks and bonds. That is the approach I follow.
by Peter Foley
Mon Jan 14, 2019 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Help me pick a retirement date. Or enough is enough?
Replies: 33
Views: 4090

Re: Help me pick a retirement date. Or enough is enough?

Because you are planning to do Roth conversions I assume most of your retirement savings are in tax deferred. I think retiring at 62 is a reasonable plan.
by Peter Foley
Sat Jan 12, 2019 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Help updating portfolio for 2019.
Replies: 14
Views: 1844

Re: Help updating portfolio for 2019.

My personal preference would be to buy the total stock market as you suggested. My experience with Schwab was that when I met in person with my assigned adviser I brought a summary of my 401k (457b) holdings. The recommendations I got then took those holdings into account. (The purpose of the meetin...
by Peter Foley
Sat Jan 12, 2019 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: New investor seeking feedback about retirement accounts
Replies: 13
Views: 852

Re: New investor seeking feedback about retirement accounts

ukuleledad, Sorry I misread your post. Your proposal for taxable is okay in terms of the number of funds. I would consider not holding much in bonds in that account, however, if you have space in a tax deferred account. My preference is to hold some I-bonds for a little inflation protection. Your wi...
by Peter Foley
Fri Jan 11, 2019 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: New investor seeking feedback about retirement accounts
Replies: 13
Views: 852

Re: New investor seeking feedback about retirement accounts

I agree with all the points Bill made. I use Schwab, but Vanguard is fine too. Taxable account: Way too many funds! In general anything less than 5% is too small to make a difference in yield or add to diversification. Better to manage this yourself. 401k - This does not seem to me to be a good low ...
by Peter Foley
Fri Jan 11, 2019 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Advice for retiring parents: converting 401k to Roth IRA
Replies: 19
Views: 1654

Re: Advice for retiring parents: converting 401k to Roth IRA

A couple points have not been mentioned. Leaving some money in a 401k/403b/457 can be a good option if that account has access to low cost funds and possibly a higher interest paying stable value fund. I use a stable value fund as part of my bond allocation. An IRA can have some advantages when one ...
by Peter Foley
Fri Jan 11, 2019 8:30 am
Forum: Investing - Help with Personal Investments
Topic: [Split into taxable / non-tax advantage accounts]
Replies: 6
Views: 326

Re: [Split into taxable / non-tax advantage accounts]

I think it is advisable to the the same brokerage for all acccounts. At some point you may want to do transfers between accounts and a single brokerage with a summary page of all your accounts can make that easier. I use Schwab. They have had on line access and trading for many years. They have low ...
by Peter Foley
Thu Jan 10, 2019 10:23 pm
Forum: Investing - Theory, News & General
Topic: Salary, Portfolio size, and Asset Allocation
Replies: 33
Views: 2750

Re: Salary, Portfolio size, and Asset Allocation

I would change the Op's wording slightly. Age, risk tolerance, and retirement savings (or net worth if you wish). While net worth is built into risk tolerance "ability to take risk", some individuals might define risk tolerance as simply willingness to take risk. Obviously, a person with $10M in ass...
by Peter Foley
Thu Jan 03, 2019 11:45 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawing from taxable.
Replies: 9
Views: 1147

Re: Withdrawing from taxable.

I may be wrong but I would guess that if you are selling an index 500 in a joint account and you wife is buying it back that is a wash sale. Does she have other options like a total stock market? Alternatively she could contribute to a 401k money market for the next 3 cycles (six weeks) and then buy...
by Peter Foley
Thu Jan 03, 2019 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Would appreciate feedback on a review of these holdings
Replies: 3
Views: 259

Re: Would appreciate feedback on a review of these holdings

Given your age and the assets you currently have in tax deferred, I would be inclined to establish a Roth account for each of you. At some point you may want to do Roth conversions and having accounts set up might be helpful I agree with David that you have a lot of overlap in your stock mutual fund...
by Peter Foley
Thu Jan 03, 2019 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawing from taxable.
Replies: 9
Views: 1147

Re: Withdrawing from taxable.

Wash sales only occur when you buy back, not when you sell.

I would just sell it all and buy something similar with the money you don't need. For example, selling an index 500 and buying a total stock market is not a wash sale and the two are fairly similar.
by Peter Foley
Thu Jan 03, 2019 12:13 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Rebalancing Strategy
Replies: 19
Views: 1199

Re: Portfolio Rebalancing Strategy

If you are contributing to a retirement account you should have a ready flow of cash to take advantage of strategy #2. I've only used #1 in taxable accounts when tax loss harvesting.
by Peter Foley
Thu Jan 03, 2019 12:08 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion 2019 and Beyond (Updated Data)
Replies: 9
Views: 1179

Re: Roth Conversion 2019 and Beyond (Updated Data)

I think the best Roth conversion calculator is Bigfoot's Retiree Portfolio Model. An alternative is i-orp. I've run various scenarios in both. My inclination would be to model a Roth conversion for 2-3 years up to the bottom of the 22% bracket. As a guide, have you looked at your income with RMD's? ...
by Peter Foley
Wed Jan 02, 2019 12:01 am
Forum: Investing - Help with Personal Investments
Topic: Can you help me solve the reallocation puzzle?
Replies: 7
Views: 731

Re: Can you help me solve the reallocation puzzle?

Just to reinforce a couple points that have already been made. Your placement of funds is not very tax efficient. In the course of simplification try to get more of your bond allocation in tax deferred accounts. Do look at Roth conversions as soon as you retire. You have a lot in tax deferred and on...
by Peter Foley
Mon Dec 31, 2018 11:57 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes for Withdrawals [impact on Adjusted Gross Income for ACA]
Replies: 6
Views: 500

Re: Taxes for Withdrawals [impact on Adjusted Gross Income for ACA]

Oatmeal said: I know the dividends are taxed like ordinary income No they are not. Dividends and long term capital gains are not taxed at all on the federal level for a single person with taxable income (including those dividends and long term capital gains) below $38,600. Above that they are taxed ...
by Peter Foley
Mon Dec 31, 2018 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions sought re: age-related investing issue
Replies: 39
Views: 2072

Re: Opinions sought re: age-related investing issue

I agree with the consensus view of those who have responded. There are some people who would benefit from an adviser. However, IMHO it is not age related as implied, it is more temperament related. Some people could benefit from a little hand holding as their risk tolerance is at one end or the othe...
by Peter Foley
Mon Dec 31, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Help updating portfolio for 2019.
Replies: 14
Views: 1844

Re: Help updating portfolio for 2019.

Welcome! Your should read the information on the Wiki regarding tax efficient fund placement. /www.bogleheads.org/wiki/Tax-efficient_fund_placement Basically, you should be holding as much of your bond allocation in your tax deferred accounts as possible, hold stocks in your Roth account, and possib...
by Peter Foley
Mon Dec 31, 2018 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Question after reading "The Bogleheads' guide to investing"
Replies: 11
Views: 1202

Re: Question after reading "The Bogleheads' guide to investing"

I would move the entire bond allocation to the 401k if expenses are not too high for that fund. You might have a tax loss harvest opportunity if the two bond funds are not the same. (For example sell total bond fund and buy intermediate bond fund.)
by Peter Foley
Mon Dec 31, 2018 12:00 am
Forum: Investing - Theory, News & General
Topic: International Funds Still Relevant in a Simple Portfolio?
Replies: 72
Views: 4698

Re: International Funds Still Relevant in a Simple Portfolio?

I've updated some of my numbers over the past couple days and my international exposure has not changed much. It is roughly 15% of my equities, 7.5% of my total. I'm comfortable with that even with international's long term under performance relative to US.
by Peter Foley
Sun Dec 30, 2018 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: Question after reading "The Bogleheads' guide to investing"
Replies: 11
Views: 1202

Re: Question after reading "The Bogleheads' guide to investing"

In general I think the overall tend of the market is up because society (very broadly speaking) is better off than it was 200 years ago. There is more wealth, and in many nations of the world it is spread enough to create a middle class that has its basic needs met plus a little extra. Maslow's hier...
by Peter Foley
Sun Dec 30, 2018 12:03 am
Forum: Investing - Help with Personal Investments
Topic: Opinions sought $3.5 M Net Worth
Replies: 76
Views: 8906

Re: Opinions sought $3.5 M Net Worth

I'm surprised no one has mentioned a Roth contribution. You should look into a backdoor Roth. Does your wife have any accounts in her name? Any Income at all? A Roth might be an option for her as well.

Roth conversions after you retire would be advisable as already mentioned.
by Peter Foley
Sat Dec 29, 2018 11:54 pm
Forum: Investing - Theory, News & General
Topic: Customizing The Glidepath
Replies: 13
Views: 1840

Re: Customizing The Glidepath

I've been a proponent of a rising equity glide path since reading about it a few years ago. It was basically my approach as I neared retirement. I wanted to reduce risk so that I would not have to delay retirement. Had I not reduced my equities in 2011 I certainly would be ahead of where I am today....
by Peter Foley
Sat Dec 29, 2018 3:40 pm
Forum: Investing - Theory, News & General
Topic: How Strategic is your Strategic Allocation?
Replies: 16
Views: 1123

Re: How Strategic is your Strategic Allocation?

Here is an alternative point of view. I'm not endorsing it, it was in a recent article I read. Lastly, let’s talk about “optimal asset allocation.” Gordon Irlam published a study in which he noted that, while it would be tremendously helpful to know the optimal allocation, his estimate of the 95th p...
by Peter Foley
Fri Dec 28, 2018 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Help
Replies: 5
Views: 324

Re: Asset Allocation Help

I agree that you are holding a little more in non equities than many your age - in part because of the house savings which is an entirely different goal and time frame. I think your proposed AA is fine. I personally would be inclined to hold fewer funds in the 401k. Allocations of less than 5% aren'...
by Peter Foley
Fri Dec 28, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: What do you do with dividends?
Replies: 51
Views: 4435

Re: What do you do with dividends?

Retired 6 years. Reinvest dividends and capital gains in tax deferred accounts and Roth. Dividends and capital gains in taxable accounts go to money market fund, then transferred to checking account. I do not want small purchases messing with the cost basis of the fund I hold in our taxable account....
by Peter Foley
Fri Dec 28, 2018 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1201

Re: QCD, RMD, and Roth conversions

Slightly different question to the knowledgeable group following this thread: I turn 70 in September and 70.5 in March of the following year. The December 31 balance in my IRA determines my RMD. I'd like to do QCDs of the entire amount of my RMD, but not all to the same charity. Is this possible? Is...
by Peter Foley
Fri Dec 28, 2018 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Taking over mother's finances - taxes, asset allocation, and deferred annuity
Replies: 12
Views: 784

Re: Taking over mother's finances - taxes, asset allocation, and deferred annuity

GT99 wrote: The losses are in CIT, Ford, and Southern Co, so I need to sell those to offset gains. So I'm thinking I sell those and IBM, but I'm only going to sell ~13% of the IBM due to tax constraints. This is a good first step. Other things I would consider have mostly been mentioned. 1. Money ma...
by Peter Foley
Thu Dec 27, 2018 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Should I invest in a ROTH to the top of the 12% tax bracket
Replies: 10
Views: 1166

Re: Should I invest in a ROTH to the top of the 12% tax bracket

I would do it for at least one year just to have the flexibility of having taxable, tax deferred, and tax free options for withdrawals in retirement. You will also start the 5 year clock with respect to withdrawals of earnings.
by Peter Foley
Thu Dec 27, 2018 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Charitable contributions as a tax efficiency tool
Replies: 5
Views: 238

Re: Charitable contributions as a tax efficiency tool

Charitable contribution can be a tax efficiency tool. But, it works better for some than for others. Example for a three year period where one year is itemized deductions and the other two are standard deductions. Example #1 (MFJ under 65) 1. State Income tax and local property tax limited to $10,00...
by Peter Foley
Wed Dec 26, 2018 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for "Little Old Lady" revised
Replies: 21
Views: 2626

Re: Advice for "Little Old Lady" revised

dratkinson wrote: Recommended book. I recall reading a section in the book How to Make Your Money Last, by Jane Bryant Quinn, that talked about reverse mortgages and how to get one. The book is quite thick and covers many options to help us pay for our retirement. (Most sections did not apply to me ...
by Peter Foley
Wed Dec 26, 2018 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 10
Views: 1213

Re: Tax question

You are likely in an income range were each additional dollar of taxable income makes more of your Social Security benefit taxable. Check out Taxation of SS on the BH Wiki.
by Peter Foley
Wed Dec 26, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: What was your best investment in 2018?
Replies: 127
Views: 7238

Re: What was your best investment in 2018?

Early this century I-Bonds. Second best was stable value funds.
by Peter Foley
Tue Dec 25, 2018 10:22 pm
Forum: Personal Consumer Issues
Topic: investing books for gifts
Replies: 16
Views: 1145

Re: investing books for gifts

Wolfpacker wrote: For 2nd book, I'm surprised no one mentioned "The Only Investment Guide You'll Ever Need" by Andrew Tobias. Tobias agrees with keep-it-simple, diversified mutual funds portfolio approach (like Jack Bogle), but his book also covers other personal finance topics of importance to youn...
by Peter Foley
Tue Dec 25, 2018 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Which accounts to put under Trust?
Replies: 5
Views: 683

Re: Which accounts to put under Trust?

I will defer to Gill on this question.

What is the purpose of the Trust? Provide for minor children? Blended family? Subject to Federal estate tax?
by Peter Foley
Tue Dec 25, 2018 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Better options for emergency Fund than Ally CDs/Savings?
Replies: 20
Views: 2676

Re: Better options for emergency Fund than Ally CDs/Savings?

We don't use Vanguard.

We have had a good experience with Ally over the years.
by Peter Foley
Tue Dec 25, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: What did you do once you hit your target number?
Replies: 49
Views: 5421

Re: What did you do once you hit your target number?

Mine was a bit of odd experience/poor? timing. I hit my number in the summer of 2008. Then I had to wait a couple of years until I hit it again. I started reducing risk as we pulled out of the great recession. Had I not reduced risk I would be significantly ahead of where we are today.
by Peter Foley
Tue Dec 25, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Help Me Think About the Future: How Do You Know When Your Risk Tolerance Changes?
Replies: 37
Views: 2397

Re: Help Me Think About the Future: How Do You Know When Your Risk Tolerance Changes?

Grabiner wrote:
I will go from 92% to 90% when I rebalance next week.
As I am sure you are well aware, sometimes the market takes care of it for you. You may have no need to intervene next week. Hopefully so, however. :wink:
by Peter Foley
Tue Dec 25, 2018 12:09 am
Forum: Investing - Help with Personal Investments
Topic: Advice for "Little Old Lady" revised
Replies: 21
Views: 2626

Re: Advice for "Little Old Lady" revised

At your level of assets and income you should be moving to a simplified portfolio. You own a number of funds that hold the same stocks (this is called overlap). Getting down to 3-5 funds should be doable with incurring taxation of your social security benefits nor long term capital gains. For someon...
by Peter Foley
Mon Dec 24, 2018 10:10 pm
Forum: Investing - Theory, News & General
Topic: Which book? [for a new investor]
Replies: 21
Views: 1662

Re: Which book? [for a new investor]

The Four Pillars of Investing is an excellent book. I think you really need a little background to fully appreciate it. I would read a couple of more basic books first. Jane Bryant Quinn's books are a good introduction to the basics.