Search found 4141 matches

by Peter Foley
Sun Jan 21, 2018 11:09 am
Forum: Investing - Help with Personal Investments
Topic: How to invest funds for retirement?
Replies: 12
Views: 970

Re: How to invest funds for retirement?

I agree with retiredjg's assessment.
by Peter Foley
Sun Jan 21, 2018 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Filing for unemployment
Replies: 5
Views: 412

Re: Filing for unemployment

In my former life I was a state level director for the unemployment insurance program. While there is federal conformity regarding a number of provisions in the program, some state flexibility is allowed. There is a fair amount of divergence in state law regarding how separation packages affect unem...
by Peter Foley
Sun Jan 21, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Excel for Personal Finance Accounting ?
Replies: 22
Views: 1214

Re: Excel for Personal Finance Accounting ?

I used MS Money for many years before moving to Excel about 10 -12 years ago. While MS Money was better at tracking spending, I found that I really did not use that data. For tracking asset performance, asset allocation, and net worth, Excel works well. I have a relatively simple portfolio and updat...
by Peter Foley
Sat Jan 20, 2018 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation and rebalancing
Replies: 7
Views: 458

Re: Asset allocation and rebalancing

Many individuals who are still working rebalance by redirecting future retirement account contributions. One does not have to buy and sell to rebalance.
by Peter Foley
Sat Jan 20, 2018 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest funds for retirement?
Replies: 12
Views: 970

Re: How to invest funds for retirement?

While Nedsaid mentioned this, I would like to emphasize that with access to the G fund you do not need to hold bond funds in your Roth. I would add that 7% to the total stock market fund. My personal opinion is that it is prudent to be a little more conservative around your retirement date. I would ...
by Peter Foley
Sat Jan 20, 2018 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Saturday Morning Panic and I-bonds
Replies: 8
Views: 1362

Re: Saturday Morning Panic and I-bonds

Both approaches are good. The better approach for you really depends on your asset allocation and risk tolerance. If you have a higher risk tolerance and can wait out a 3-5 year market correction, the Roth - invested in stocks - would be the way I would go. With a low risk tolerance and conservative...
by Peter Foley
Fri Jan 19, 2018 10:52 pm
Forum: Personal Consumer Issues
Topic: Alternatives to Subaru Forrester
Replies: 34
Views: 1777

Re: Alternatives to Subaru Forrester

We traded in a 2000 Forester for a 2012 Nissan Rogue. We chose the Rogue because of the reviews it received regarding reliability and seat comfort.
We have no regrets. My wife and I both found the Forester ride to be punishing on a longer (2 hour plus) trip.
by Peter Foley
Fri Jan 19, 2018 10:42 pm
Forum: Personal Consumer Issues
Topic: Recommend an A.C. powered auto tire inflator
Replies: 41
Views: 2207

Re: Recommend an A.C. powered auto tire inflator

We have two of these. One at home and one at our lake cabin. Both have worked for many years without problems. They are not fast but they get the job done. Campbell Hausfeld Home Inflation System (RP410099AV) HOME INFLATION SYSTEM (RP410099AV) The Campbell Hausfeld 120-volt inflator (RP410099AV) del...
by Peter Foley
Fri Jan 19, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Help with inheritance funds
Replies: 17
Views: 1794

Re: Help with inheritance funds

Nothing wrong with selling some of the funds that have gains. You have stated that you do not have a need to sell them all. Your long term capital gains rate will be 15% (federal) based on the information you have provided. Selling a mix of funds, equity funds that have performed well along with som...
by Peter Foley
Thu Jan 18, 2018 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: When is a net epense ratio fee too high ???
Replies: 3
Views: 426

Re: When is a net epense ratio fee too high ???

While this does not apply to the example you provide, IMHO the expense ratio fee needs to be thought of in terms of the length of time the asset will be subject to the fee. Paying a 1% fee, considered high by many here, is not horrible if it is only for a couple of years. My approach to fees is to t...
by Peter Foley
Sat Jan 06, 2018 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: What strategy do you use to reduce sequence of returns risk in retirement?
Replies: 117
Views: 7294

Re: What strategy do you use to reduce sequence of returns risk in retirement?

TN_Boy Your read on Pfau/Kitces is correct. My personal approach to this was to have extra cash in my taxable account. Almost all of our non equities are in tax deferred and I did not want to tap that for living expenses as I wanted to do a series of Roth conversions. There has been a fair amount of...
by Peter Foley
Sat Jan 06, 2018 12:07 am
Forum: Investing - Help with Personal Investments
Topic: Please help me with VG Advisory's Recommendaitons
Replies: 27
Views: 2162

Re: Please help me with VG Advisory's Recommendaitons

While you are in the 15% bracket (now 12%) the Roth is fine. Once you move to a higher bracket you will want to defer some income to lower your taxes. That will above about $77,400 in taxable income (about $102,000 in adjusted gross income).
by Peter Foley
Fri Jan 05, 2018 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: What strategy do you use to reduce sequence of returns risk in retirement?
Replies: 117
Views: 7294

Re: What strategy do you use to reduce sequence of returns risk in retirement?

Take a look at Wade Pfau's article "Rising Equity Glide Path." Basically it talks about being more conservative in terms of AA around the time you retire and letting your AA drift higher later. A few posters have hinted at a part of this strategy which is to keep a few years of income needs in cash ...
by Peter Foley
Fri Jan 05, 2018 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Please help me with VG Advisory's Recommendaitons
Replies: 27
Views: 2162

Re: Please help me with VG Advisory's Recommendaitons

hope 25 wrote: I am thinking of selling off everything in the Roth except Total Bond Market Admiral and Total International Bond Market Admiral. I was also thinking o, perhaps, putting some VG Total International Stock Market Admiral in the Roth. Or I can leave it out and put it into the taxable. I ...
by Peter Foley
Fri Jan 05, 2018 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Please help me with VG Advisory's Recommendaitons
Replies: 27
Views: 2162

Re: Please help me with VG Advisory's Recommendaitons

I would not follow all of this adviser's recommendations. There is no need to have a portfolio as complex as has been advised. I can understand some complexity in a taxable account where the taxation of long term capital gains might be an issue, but it is not clear that that is your circumstance. If...
by Peter Foley
Thu Jan 04, 2018 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Too much tax deferral?
Replies: 26
Views: 3326

Re: Too much tax deferral?

MoonOrb wrote: Is there a point at which it stops making sense to put funds into tax-deferred investments and switch instead to more of a mix of Roths or even taxable? I ask because 2/3 of our investments are in tax deferred vehicles with about 20% in Roths and just 13% in taxable. For some savers/i...
by Peter Foley
Thu Jan 04, 2018 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Help With Investment Goals
Replies: 2
Views: 241

Re: Help With Investment Goals

I think your basic plan is okay. Saving 20% for retirement from the get go is great. Based on your profession do you expect to stay in the 15% (or now the 12%) marginal tax bracket for the next few years? For the next 10 years perhaps? I'm thinking that at your current income level if you are expect...
by Peter Foley
Wed Jan 03, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Shifting Focus to Retirement
Replies: 3
Views: 483

Re: Portfolio Review - Shifting Focus to Retirement

I would recommend a couple minor changes for tax efficiency: Hold a stock fund rather than a Target Retirement fund in taxable. Hold stock funds in your Roths. Increase your bond holdings in tax deferred account to compensate. Some employer tax deferred accounts accept transfers from IRAs. You might...
by Peter Foley
Wed Jan 03, 2018 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: How soon to convert the Traditional IRA to Roth IRA?
Replies: 6
Views: 881

Re: How soon to convert the Traditional IRA to Roth IRA?

You might want to check out this thread. I'm sure strategies will emerge with respect to Roth conversions - less of an issue for those who convert a basic TIRA every year - more of an issue for those converting larger sums.

Roth Conversions without ability to Recharacterize
by Peter Foley
Tue Jan 02, 2018 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation during retirement and Safe Withdrawal Rates
Replies: 8
Views: 679

Re: Asset Allocation during retirement and Safe Withdrawal Rates

I think you current asset allocation is fine and your plan for the future is mainstream as well. If you want a different take on this I would suggest you read about the concept of a Rising Equity Glide Path - Wade Pfau. In very broad terms he suggests one might want to be a little more conservative ...
by Peter Foley
Mon Jan 01, 2018 8:28 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversions without ability to Recharacterize
Replies: 45
Views: 2398

Re: Roth Conversions without ability to Recharacterize

celia wrote: If I was going to split my $100K conversion into fourths (roughly) and had converted $25K on January 1, then the market was down 10% on February 1, I would go ahead and do my second conversion then. If the market then went down another 10%, I would do the third conversion. But if the ma...
by Peter Foley
Mon Jan 01, 2018 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Use windfall to temporarily increase taxes?
Replies: 2
Views: 430

Re: Use windfall to temporarily increase taxes?

Our other income fills up the 12% bracket. So for us the conversion is all within the 22% bracket.

The question is really a behavioral finance question - would you spend "found money" now to save other money 3-5 years from now?
by Peter Foley
Mon Jan 01, 2018 3:57 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversions without ability to Recharacterize
Replies: 45
Views: 2398

Re: Roth Conversions without ability to Recharacterize

While I expect there will be some creative strategies for doing Roth conversions (not backdoor Roths), my plan is to divide my annual conversion into quarterly conversions. If there is a significant drop in the market at some point in time in the year (10%+), I would take advantage of that and conve...
by Peter Foley
Mon Jan 01, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Use windfall to temporarily increase taxes?
Replies: 2
Views: 430

Use windfall to temporarily increase taxes?

I admit we had a good year in 2017. I suspect many of you did too. Much of the windfall came in our tax deferred accounts. Our overall portfolio is now even more over-weighted to tax deferred (AA 45/55), dwarfing our taxable (AA 40/60) and Roth (AA 100/0) holdings. We aim for a 50/50 AA overall. I a...
by Peter Foley
Sat Dec 30, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Wiki - Tax law changes
Replies: 8
Views: 2496

Re: Wiki - Tax law changes

Lady Geek I'm not sure if you are continuing to monitor this thread or not. I much prefer the two table approach. Based on some of the notes on that page I would be inclined to change the headings to better reflect the content. Although cumbersome, the Collectibles column could read, Collectibles, p...
by Peter Foley
Fri Dec 29, 2017 8:49 pm
Forum: Personal Consumer Issues
Topic: Spain Trip: Barcelona & Girona + Cycling
Replies: 11
Views: 653

Re: Spain Trip: Barcelona & Girona + Cycling

Easy train from Barcelona to Girona. I would also consider a day trip to nearby Figueres to see the Dali museum. It is quite unique.
by Peter Foley
Fri Dec 29, 2017 5:30 pm
Forum: Investing - Theory, News & General
Topic: Quarter end last minute sell-off again! How to leverage as much as possible next time?
Replies: 7
Views: 1196

Re: Quarter end last minute sell-off again! How to leverage as much as possible next time?

Buy an S&P 500 put or sell an S&P 500 call. This is almost pure gambling, not investing. I gave up on puts and calls 20 years ago.
by Peter Foley
Thu Dec 28, 2017 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Wiki - Tax law changes
Replies: 8
Views: 2496

Re: Wiki - Tax law changes

Personal preference only - I like the multiple tables for 2018 that you did in the notes better than the single table that was used for 2017. I find the multiple tables easier to read. Also the heading for the tables should make it clear that the numbers refer to taxable income, not adjusted gross i...
by Peter Foley
Thu Dec 28, 2017 12:50 pm
Forum: Investing - Theory, News & General
Topic: Retirement Calculator Help
Replies: 9
Views: 1239

Re: Retirement Calculator Help

I suggest you run your number through Firecalc. Based on reviews and personal experience I think it is the best (or at least among the best) of the retirement calculators for accumulators.
by Peter Foley
Thu Dec 28, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Stable Value Fund Question
Replies: 20
Views: 1811

Re: Stable Value Fund Question

quantAndHold wrote: A stable value fund is basically a bond fund with an insurance wrapper. The insurance guarantees the principal and the the interest rate. The main feature is that the interest rates change more slowly than the bond market, since the interest rates don’t reset until the insurance ...
by Peter Foley
Wed Dec 27, 2017 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement around the corner
Replies: 8
Views: 1213

Re: Retirement around the corner

Things you might consider: 1. Use your 2018 earning to max out your Roths for the year. This might give you some additional flexibility in terms of income source (tax free Roth) when you hit RMD's. 2. Like many people our age, our tax deferred savings dwarf our Roth savings. In your case and mine th...
by Peter Foley
Tue Dec 26, 2017 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Conversion to Roth IRA
Replies: 6
Views: 619

Re: Conversion to Roth IRA

I would open a second Roth account. I have two for the purpose of separating contributions from conversions in case I ever needed to recharacterize a conversion.
by Peter Foley
Tue Dec 26, 2017 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Approaching retirement - need help in simplifying portfolio
Replies: 3
Views: 685

Re: Approaching retirement - need help in simplifying portfolio

My inclination would be to weed out the smaller holdings in your retirement accounts and consolidate to a 3 to 5 fund portfolio. You will want a total US fund, a total international fund and a broad based bond fund. Beyond that if you want to add a small cap tilt or a value tilt you can do that in a...
by Peter Foley
Tue Dec 26, 2017 1:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help with inheritance funds
Replies: 17
Views: 1794

Re: Help with inheritance funds

I would be tempted to take some of the money and pay down your mortgage so that you have no mortgage when you retire. Paying off some of the mortgage is likely a better investment than short term bond funds and money market funds. If you have no plans to spend the rest and do not project a need for ...
by Peter Foley
Tue Dec 26, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48792

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

SimonJester wrote: What I haven't seen discussed is what this does at the State Tax level for income tax. My state does a flat tax based on your federal taxable income. With the elimination of the personal exemptions your taxable income goes up (if you have any dependents or are married). This was o...
by Peter Foley
Tue Dec 26, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: How can I move from stocks to Bogleheads portfolio?
Replies: 10
Views: 1466

Re: How can I move from stocks to Bogleheads portfolio?

You mention both a brokerage account and restricted stock. Are all your holdings in taxable accounts? If some of your stocks are in a deferred account (IRA or 401k) this reduces the capital gains implications and may facilitate a more rapid transition to a broadly based mutual fund approach for much...
by Peter Foley
Mon Dec 25, 2017 11:18 am
Forum: Personal Finance (Not Investing)
Topic: Wiki - Tax law changes
Replies: 8
Views: 2496

Re: Wiki - Tax law changes

Thanks to Lady Geek for starting this. There are many ways to organize information of the internet to make it accessible and usable. The effort to add information regarding the tax law legislation on the Wiki will be substantial. To help with this effort and make it useful to readers I would hope th...
by Peter Foley
Sat Dec 23, 2017 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone here purchased a home for cash (no mortgages)?
Replies: 39
Views: 3861

Re: Has anyone here purchased a home for cash (no mortgages)?

We did for a current home which we bought one year prior to retirement. We made a no contingent cash offer and the seller reduced the price to take our offer which was below market. There was a bit less paperwork. We had an offer in hand for our prior house. We did have to do some contingency planni...
by Peter Foley
Fri Dec 22, 2017 10:10 pm
Forum: Personal Consumer Issues
Topic: Tax bracket
Replies: 9
Views: 2013

Re: Tax bracket

Agreed, taxable income for Federal taxes. What some taxpayers do not realize that for states with state income taxes the starting point may be federal taxable income or federal adjusted gross income or something else. This comes into play when one considers whether it is better to direct RMDs to a c...
by Peter Foley
Fri Dec 22, 2017 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48792

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

First - thanks to Alex for opening this up. With a number of individuals having questions regarding different provisions of the tax bill, I think a single thread was a reasonable approach. The being said, Lady Geek Wrote: I'd also like to make a shameless request for help updating the wiki. The new ...
by Peter Foley
Fri Dec 22, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Introducing Myself, Seeking Retirement Advice
Replies: 17
Views: 2136

Re: Introducing Myself, Seeking Retirement Advice

I would look into the stable value fund as an alternative to a bond fund. If it is low cost and pays over 2% (or slightly above the rate of inflation) it is not a bad place to park money to reduce risk to you level of tolerance.
by Peter Foley
Fri Dec 22, 2017 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion strategies for 2018 and beyond?
Replies: 13
Views: 1483

Re: Roth conversion strategies for 2018 and beyond?

My approach will only change slightly. Mine was to do a conversion early in the year and then be prepared near the end of the year to recharacterize and have my wife do a conversion. With the steadily rising market over the past few years I've never had to recharacterize. Going forward, which for us...
by Peter Foley
Fri Dec 22, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Strategy for month of the year to retire
Replies: 33
Views: 2516

Re: Strategy for month of the year to retire

I retired in May of 2012 after a fair bit of analysis. I was able to max out my deferred compensation for the year and allow ample space for a Roth conversion to the top of the 15% bracket. I retired a few days into the month, one day into a new payroll period, so that I would have employer paid hea...
by Peter Foley
Thu Dec 21, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Introducing Myself, Seeking Retirement Advice
Replies: 17
Views: 2136

Re: Introducing Myself, Seeking Retirement Advice

Even though the long term benefits may be the same, I think there is a real advantage to establishing a Roth IRA early on. One advantage is to meet the withdrawal requirement of having a Roth for 5 years. You are a long way from retirement, but there is no reason not to establish a Roth far in advan...
by Peter Foley
Thu Dec 21, 2017 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Moving my Spouse IRA to Roth
Replies: 9
Views: 592

Re: Moving my Spouse IRA to Roth

You should look at the impact on your marginal tax rate before deciding to convert all of your wife's existing IRA in a single year. It might be to your advantage to convert it over a few years.
by Peter Foley
Wed Dec 20, 2017 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48792

Re: Tax Bill Omnibus Thread

It has been commented upon that the estate tax exemption thresholds have doubled. I've read through the Kitces analysis and did not see any mention of a change to the annual gifting limitations. I know that taxes are not due, but gifting above certain levels requires that some paperwork be filed wit...
by Peter Foley
Wed Dec 20, 2017 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: IRA planning (year end)
Replies: 10
Views: 707

Re: IRA planning (year end)

Your latest post is really a question about asset allocation and risk tolerance. There are a lot of informed opinions on this topic. To summarize a couple very briefly: Age in bonds; Never more than 75% stocks and never less than 25% stocks; and many variations on these approaches. From my readings,...
by Peter Foley
Wed Dec 20, 2017 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48792

Re: Tax Bill Omnibus Thread

It will be interesting to see how the provisions all play out together. Per my limited understanding of the bill with respect to State and Local INCOME tax deductions. In January of this year I did a substantial Roth conversion and had Federal and State taxes withheld. With the passage of the bill b...
by Peter Foley
Wed Dec 20, 2017 10:49 am
Forum: Investing - Help with Personal Investments
Topic: IRA planning (year end)
Replies: 10
Views: 707

Re: IRA planning (year end)

A reason to do what you are proposing would be to defer paying taxes at a certain rate now and perhaps pay taxes on the withdrawals at a lower rate later. If you truly have no other investments, I would move forward with either of the two companies you mentioned. I use Schwab and like the convenienc...
by Peter Foley
Tue Dec 19, 2017 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax Prices
Replies: 156
Views: 17843

Re: TurboTax Prices

I prefer the CD version to the download. As mentioned, I may want to reinstall it a few years from now for audit purposes. In addition, Turbo Tax is not as transparent with the features of the download version and you may buy a bargain only to find out it won't handle a form you need. Then again, al...