Search found 16 matches

by tranmr
Mon Oct 26, 2015 10:21 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

Re: About to retire - could use some advice

Thank you for this information. It helps! MT There are a number of ways you can avoid the penalty for withdrawing from your 401k before age 59.5: https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics---Tax-on-Early-Distributions Note especially “Separation from Service” and also “Equal Payments”, https://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Substantially-Equal-Periodic-Payments I used this with a 403b after retiring at age 56, withdrawing a small but very useful amount for 5 yrs. So, if you are retired and over age 55, it is possible to access your 401k without paying a penalty. Using taxable and already taxed 401k assets is probably preferred, before considering drawing down your pre-taxe...
by tranmr
Mon Oct 26, 2015 10:20 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

Re: About to retire - could use some advice

I appreciate your reply! MT do not currently have any ROTH investments. Should I? Converting some money to a Roth can help you manage your taxes later on if your income is in the range where each extra dollar of income causes $.50 to %.85 more of your Social Security be taxed so you need to understand how that works. https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits 2. Our company 401k is supposedly set up so that I can use the pre tax funds if needed prior to 59 ½ without any penalty. It seems that it may not be any advantage to roll over these funds as the expense ratios seem pretty competitive with Vanguard and others. Am I missing something? Should I be looking at other factors outside of the published expense ratios ...
by tranmr
Mon Oct 26, 2015 10:19 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

Re: About to retire - could use some advice

Thanks for your input, much appreciated. MT The 401 k funds are reasonable, plus you have access to a stable value fund. My svf in my 401k is awful, but some have a great interest rate so it might be a good idea to keep the 401k, depending on the stable fund. What is your projected withdrawal rate in retirement? Some roth conversions migh be a good idea. You could play around with iorp to see how that might impact your taxes. http://www.i-orp.com/ Mike Thank you very much for the response. I will look at the I-orp tool. Much appreciated! Congratulations on the soon to happen retirement! I plan to keep my 401k plan until 70; It is already with VG with good three fund choices, some of the funds are "plus shares" (even lower ER) and ...
by tranmr
Mon Oct 26, 2015 10:19 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

Re: About to retire - could use some advice

This helps, thank you! The 401 k funds are reasonable, plus you have access to a stable value fund. My svf in my 401k is awful, but some have a great interest rate so it might be a good idea to keep the 401k, depending on the stable fund. What is your projected withdrawal rate in retirement? Some roth conversions migh be a good idea. You could play around with iorp to see how that might impact your taxes. http://www.i-orp.com/ Mike Thank you very much for the response. I will look at the I-orp tool. Much appreciated! Congratulations on the soon to happen retirement! I plan to keep my 401k plan until 70; It is already with VG with good three fund choices, some of the funds are "plus shares" (even lower ER) and the stable value is p...
by tranmr
Mon Oct 26, 2015 10:18 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

Re: About to retire - could use some advice

Thank you for the note
Morik wrote:
tranmr wrote:
herpfinance wrote:
tranmr wrote:Here is my situation:
Desired Asset allocation: 60% stocks / 15-25% bonds
Desired International allocation: 5-15% of stocks
For the sake of clarification, do you really mean 65-75% stocks?
No I really mean that mean that I feel comfortable with around a max of 60 percent stocks in my portfolio. Thanks for your interest!
Herpfinance may have meant, your asset allocation only totals 75%-85% (60% stocks + 15-25% bonds).
What is the other 15-25% desired to be? Cash?
by tranmr
Mon Oct 26, 2015 10:15 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

Re: About to retire - could use some advice

Thank you for the reply! MT There are a number of ways you can avoid the penalty for withdrawing from your 401k before age 59.5: https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics---Tax-on-Early-Distributions Note especially “Separation from Service” and also “Equal Payments”, https://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Substantially-Equal-Periodic-Payments I used this with a 403b after retiring at age 56, withdrawing a small but very useful amount for 5 yrs. So, if you are retired and over age 55, it is possible to access your 401k without paying a penalty. Using taxable and already taxed 401k assets is probably preferred, before considering drawing down your pre-taxed 401k’s. You may...
by tranmr
Fri Oct 23, 2015 2:29 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

Re: About to retire - could use some advice

mhalley wrote:The 401 k funds are reasonable, plus you have access to a stable value fund. My svf in my 401k is awful, but some have a great interest rate so it might be a good idea to keep the 401k, depending on the stable fund.
What is your projected withdrawal rate in retirement? Some roth conversions migh be a good idea. You could play around with iorp to see how that might impact your taxes.
http://www.i-orp.com/
Mike
Thank you very much for the response. I will look at the I-orp tool. Much appreciated!
by tranmr
Fri Oct 23, 2015 2:28 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

Re: About to retire - could use some advice

herpfinance wrote:
tranmr wrote:Here is my situation:
Desired Asset allocation: 60% stocks / 15-25% bonds
Desired International allocation: 5-15% of stocks
For the sake of clarification, do you really mean 65-75% stocks?
No I really mean that mean that I feel comfortable with around a max of 60 percent stocks in my portfolio. Thanks for your interest!
by tranmr
Fri Oct 23, 2015 12:59 pm
Forum: Personal Investments
Topic: About to retire - could use some advice
Replies: 16
Views: 2733

About to retire - could use some advice

Here is my situation: Emergency funds: Three to six months of: YES Debt: Indicate if you have any debt: NONE Tax Filing Status: (Married Filing Jointly) Tax Rate: 15% Federal, 0% State (after retirement on 12/31/2015) State of Residence: Washington Age: 55 Desired Asset allocation: 60% stocks / 15-25% bonds Desired International allocation: 5-15% of stocks Size of portfolio in 1 – 2 M Current retirement assets Taxable 1% cash (for investing – do not include emergency funds) 7% Vanguard Total Market (VTSAX) (.05 expense ratio) 1% American Century(BEQGX) 1% Boeing (BA) 1% Cash .5% Vodaphone (VOD) .5% Verizon (VZ) His 401k 44% S&P 500 Index (SSG Advisors – 401K fund) (.05 expense ratio) 18% Bond Market Index Fund SSG Advisors - Barclays U...
by tranmr
Tue Mar 26, 2013 3:47 pm
Forum: Personal Investments
Topic: Simple Question; selling one fund and buying another - taxes
Replies: 8
Views: 911

Re: Simple Question; selling one fund and buying another - t

OK, so here is the fund I was considering dropping:

American Century Investments Equity Growth Fund Investor Class(MUTF:BEQGX)
by tranmr
Tue Mar 26, 2013 2:21 pm
Forum: Personal Investments
Topic: Simple Question; selling one fund and buying another - taxes
Replies: 8
Views: 911

Re: Simple Question; selling one fund and buying another - t

Thanks for your replies - I think I have it. Still working so I am in an upper bracket. I think I will just stick with the investment until retirement and the 15% bracket. That is about 5 - 8 years away.
by tranmr
Tue Mar 26, 2013 2:03 pm
Forum: Personal Investments
Topic: Simple Question; selling one fund and buying another - taxes
Replies: 8
Views: 911

Simple Question; selling one fund and buying another - taxes

Just a simple question:

I have some funds invested in a managed fund within non-ira taxable account. I would like to sell these and reinvest into some lower cost Vanguard index funds. Yes, this investment has had growth over the last ten years.

When I sell will I have to pay capital gains taxes, even if I reinvest immediately?

Thanks in advance for your help and support.

MT
by tranmr
Fri Feb 15, 2013 11:28 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1560946

Re: What Book Are You Currently Reading? Part V

Re-reading a favorite of mine, Revenge of the Lawn: Stories 1962-1970, a collection of sixty-two short stories written by Richard Brautigan.
by tranmr
Wed Feb 13, 2013 1:59 pm
Forum: Personal Investments
Topic: Help with choosing 410K Bond Funds
Replies: 8
Views: 1025

Re: Help with choosing 410K Bond Funds

Thank you everyone for your posts and advice. I am going ahead with the bond market index fund (30%) , the Stable fund (20%) and SP500 (50%) to balance all this out.

Your comments were helpful . . . thanks again!

MT
by tranmr
Tue Feb 12, 2013 4:39 pm
Forum: Personal Investments
Topic: Help with choosing 410K Bond Funds
Replies: 8
Views: 1025

Re: Help with choosing 410K Bond Funds

Thanks for all your responses and follow up questions. Some of you asked about a stable value fund and what the expense ratios are for the first four funds I posted. Here is some info related to your questions. Thanks again everyone! Stable Value Fund Benchmark BofAML US Treasury Bill 3 Month Index Custom Benchmark VIP Stable Value Custom Benchmark Investment Objective & Strategy The fund seeks to provide capital preservation and also seeks to achieve a reasonably stable rate of return. The Fund invests in high-quality (investment grade) fixed income securities including commercial paper, government/agency debt, mortgage- and asset-backed securities,corporate debt, money market instruments and cash/cash equivalents. The Fund's current d...
by tranmr
Tue Feb 12, 2013 2:29 pm
Forum: Personal Investments
Topic: Help with choosing 410K Bond Funds
Replies: 8
Views: 1025

Help with choosing 410K Bond Funds

This site has been very helpful for me to realize it is prudent for me to rebalance my 401k due to my very high percentage of equity / stock percentages. I am just about ready to take the plunge and change from about a 95 - 5 stock to bond ratio, to about 50-50 or 60 - 40, (based on my age, 52). My 95 percent is 80 percent SP 500 index and a smattering of Russell 2000, S and T, and Intl index funds. I am about 5 years from retirement. There a lot of discussion about whether or not the bond market might plunge due to the rates and other factors, but I am convinced that the majority of the braintrust here believes that that kind of thinking is more market timing, and that there is no time like the present for having a good balanced allocation...