Search found 7040 matches

by JW-Retired
Tue Mar 26, 2019 7:48 am
Forum: Personal Investments
Topic: Need help deciding between Traditional or Roth IRA for my spouse
Replies: 4
Views: 228

Re: Need help deciding between Traditional or Roth IRA for my spouse

My family received a windfall this year. We received most of the money this year. We will receive smaller amounts in 2020 and 2021. Here is our 2018 income and estimated income for the next few years: 2018 - $145,000 2019 - $500,000-$550,000 2020 - $190,000 2021 - $165,000 What sort of "windfall"? ...
by JW-Retired
Mon Mar 25, 2019 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Do you treat inheritance as a singular or shared asset?
Replies: 113
Views: 5082

Re: Do you treat inheritance as a singular or shared asset?

We have had only had the one marriage, but we each had inheritances within the first 15 years. Both of us thought it prudent to kept the assets in personal accounts for a fairly long period. However, we did spend amounts of it for joint needs along the way. At about 30 years it looked like we were g...
by JW-Retired
Tue Mar 19, 2019 2:56 pm
Forum: Personal Investments
Topic: Vanguard Roth IRA: Backdoor or what?
Replies: 15
Views: 581

Re: Vanguard Roth IRA: Backdoor or what?

Can anyone enlighten me on this? Why am I allowed to contribute to Roth IRA, instead of doing backdoor Roth IRA, even if my MAGI is above the income limit for Roth IRA? You and the IRS are the only ones who can know if you are allowed to Roth contribute or not. IRS will know your MAGI from your tax...
by JW-Retired
Mon Mar 18, 2019 8:41 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 408
Views: 32639

Re: That's enough for me in 2019

market timer wrote:
Sat Mar 16, 2019 7:41 am
I got out of risk assets and went to cash yesterday. Felt nice to realize substantial gains on the sales.
Still a timer after all these years! Is this the only other such move since 2008?

One awful timing guess in the 90's was enough to cure me forever.
JW
by JW-Retired
Mon Mar 18, 2019 8:26 am
Forum: Personal Investments
Topic: Question about tax on Roth conversion
Replies: 7
Views: 618

Re: Question about tax on Roth conversion

I don't have any other IRAs. Just this traditional one that I'm only going to use to move money out of immediately for Roth conversion. Good, but are you certain of this? The gotcha for an astonishing number of people is they imagine that a rollover IRA from a 401k or the like counts as different f...
by JW-Retired
Fri Mar 15, 2019 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Retiring- pension is 2x annual expense. Roth conversions/ss advice.
Replies: 39
Views: 4191

Re: Retiring- pension is 2x annual expense. Roth conversions/ss advice.

Would it be better to maximize social security benefits at the possible expense of being able to convert more to Roth? Not sure what you mean? They shouldn't be doing any Roth conversions once they start taking SS benefits. It just balloons the taxes. If they want to do some modest conversions whil...
by JW-Retired
Wed Mar 13, 2019 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Predicted RMDs Have Caught Me By Surprise
Replies: 69
Views: 6938

Re: Predicted RMDs Have Caught Me By Surprise

What is your marginal tax rate? And what do you expect your marginal tax rate will be at age 70.5, with RMD and SS? This..... plus the marginal tax rate between when you retire at 62 and live on wife's income, or perhaps start taking some money from the 401k before 70.5? If you do end up after you ...
by JW-Retired
Tue Mar 12, 2019 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Does a Roth ever make sense before exhausting tax deferred space?
Replies: 8
Views: 789

Re: Does a Roth ever make sense before exhausting tax deferred space?

Ages – 47 and 50. For the past 5 years, we have maxed out our 401k contributions. 2019 HHI - $500,000 401k - $38,000 + $6000 catch-up = $44,000. No matching available for either, since in first year of each new job. Can be allocated to Roth or Traditional 401k. 2020 HHI – Assume it stays around $50...
by JW-Retired
Mon Mar 11, 2019 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Trad IRA I can't get 5498 Tax form to prove basis
Replies: 16
Views: 919

Re: Trad IRA I can't get 5498 Tax form to prove basis

no - only made post tax contributions 93-97. I think I will try the 'good faith' method. I also have a copy of a letter to a tax preparer made in 1998 (since I have taxes for that year). The letter was about my husbands Roth IRA conversion and it states that both of us contributed $10,000 post tax ...
by JW-Retired
Mon Mar 11, 2019 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Trad IRA I can't get 5498 Tax form to prove basis
Replies: 16
Views: 919

Re: Trad IRA I can't get 5498 Tax form to prove basis

I understand the pro rata (I think) I just want to know if this would be a red flag for an audit and if I did get audited is there an issue that I knew I didn't have the forms to back up the claim. I really DID contribute $10,000 post tax - I just can't prove it... Did you make any non-deductible c...
by JW-Retired
Mon Mar 11, 2019 7:39 am
Forum: Personal Investments
Topic: Another Roth conversion question
Replies: 12
Views: 1051

Re: Another Roth conversion question

............... I'm also going to be donating a bunch of common stock that I inherited that has a low basis in order to honor my father, but that could possibly reduce my adjusted gross income back into the 32% bracket. You may have that low basis wrong? You said your father died in "the fall". Usu...
by JW-Retired
Wed Mar 06, 2019 8:31 pm
Forum: Personal Investments
Topic: Confused (again) about backdoor Roth
Replies: 13
Views: 1158

Re: Confused (again) about backdoor Roth

I've made a small mistake calling it a traditional IRA since its a rollover IRA. Doesn't matter. A rollover IRA is a traditional IRA! All your rollover IRAs, traditional IRAs, sep-IRAs, & simple-IRAs are all combined together to be one big combined IRA as far as the 8606 IRS form is concerned. Once...
by JW-Retired
Wed Mar 06, 2019 4:13 pm
Forum: Personal Investments
Topic: Most NON obvious thing for new investors
Replies: 58
Views: 6705

Re: Most NON obvious thing for new investors

What's more flabbergasting is the most used stock charts to this day still don't provide a toggle to apply the dividends payed out as part of the return. Google, Yahoo, Apple, almost every major one!. Morningstar typically shows "growth of $10000" performance charts which already has the dividends ...
by JW-Retired
Wed Mar 06, 2019 9:15 am
Forum: Investing - Theory, News & General
Topic: Accounting for SS value
Replies: 50
Views: 2486

Re: Acconting for SS value

Thanks for input. We are 72. Sounds like no responder believes Bogle was correct in accounting for SS in asset allocation. I definitely take big account of my SS and my pension in picking my asset allocation. They are large enough that my real retirement nest egg assets are right around age-35 in b...
by JW-Retired
Wed Mar 06, 2019 8:31 am
Forum: Personal Investments
Topic: Confused (again) about backdoor Roth
Replies: 13
Views: 1158

Re: Confused (again) about backdoor Roth

Matt,
Don't do anything until you have read and understood and dry run practiced with the 8606 form. It will need to be part of your annual taxes forevermore.
JW
by JW-Retired
Sat Mar 02, 2019 9:02 am
Forum: Personal Investments
Topic: Old 401k - How Do I Tell If I Should Rollover
Replies: 14
Views: 937

Re: Old 401k - How Do I Tell If I Should Rollover

kameman, You didn't mention them so I assume you don't have any tIRAs now? How about Roth IRAs? Given you have an income of $155k already at age 35, you might exceed the ~$200k limit for contributing to a Roth in the next few years. If that happens you can still use the "backdoor" Roth contribution ...
by JW-Retired
Fri Mar 01, 2019 8:49 am
Forum: Personal Investments
Topic: What did wise people do with their investments in 2008
Replies: 102
Views: 6983

Re: What did wise people do with their investments in 2008

What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I wisely held tight. In the f...
by JW-Retired
Thu Feb 28, 2019 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: [Can I do a non-deductible IRA contribution, then convert to Roth?]
Replies: 12
Views: 249

Re: Why are Backdoor Roths so popular are this forum?

If you look at the 8606 you can see what it means when some of your combined IRA is converted. JW I understand how the pre-tax dollars get mixed with post-tax dollars. What if I open another tIRA account with $100 for the sole purpose of depositing post-tax dollars for Roth Conversion. Would that h...
by JW-Retired
Thu Feb 28, 2019 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: [Can I do a non-deductible IRA contribution, then convert to Roth?]
Replies: 12
Views: 249

Re: Why are Backdoor Roths so popular are this forum?

Currently, I have a ROth IRA (fidelity) that I opened in 2004; but I am 57 so under the 59.5 age where all the regulations reduce. I recently moved an old 401A account, plus deferred compensation into a tIRA with Fidelity. How do these accounts affect my desire to do any ROTH conversions like the o...
by JW-Retired
Thu Feb 28, 2019 10:10 am
Forum: Investing - Theory, News & General
Topic: Why are Backdoor Roths so popular are this forum?
Replies: 47
Views: 5017

Re: Why are Backdoor Roths so popular are this forum?

My Traditional IRA contains a mix of pre-tax and post tax (includes both rolled over 401k and non-deductible contributions) dollars. It is my (again limited) understanding that this fact - along with the pro-rata rule - make a Roth conversion inefficient for me. Do I understand correctly that you a...
by JW-Retired
Thu Feb 28, 2019 8:45 am
Forum: Personal Finance (Not Investing)
Topic: thinking about un-retiring
Replies: 37
Views: 5001

Re: thinking about un-retiring

Also, it would be nice to pick up health benefits and some $. I haven't gotten down to brass tacks on comp, but it would be six figures working 2-3 days per week. I didn't un-retire, but I did go to 3 days a week for a year or so before I retired for good. It was OK, but I found it not that differe...
by JW-Retired
Tue Feb 26, 2019 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Who does their own taxes?
Replies: 111
Views: 7322

Re: Who does their own taxes?

Almost always have done taxes myself. The single exception was a year in the 1970's where they were complicated by my father's estate, with me as the sole heir. Fathers business carried on for part of a year and then was sold. We had the CPA, who had long been doing father's business taxes, do both ...
by JW-Retired
Mon Feb 25, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: I have the answer - 4% plus 2 years (or 3.7% if you prefer)
Replies: 81
Views: 6429

Re: I have the answer - 4% plus 2 years (or 3.7% if you prefer)

If stocks were up that year, sell stocks. If stocks were down that year, sell bonds. Rebalance back to 50/50 if they get far out of balance. The rebalance back to 50/50 part might be tougher than you think. You’d be making a Pascal’s Wager. Selling safe bonds to buy risky stocks into a spiraling do...
by JW-Retired
Fri Feb 22, 2019 9:23 am
Forum: Personal Investments
Topic: Beware of the Edward Jones neighborly visit.
Replies: 89
Views: 7641

Re: Beware of the Edward Jones neighborly visit.

Am I reading these posts correctly from others that a person's age magnifies the culpability of Edward Jones types? EJ has been going door to door for decades, what about the age of the neighborhood makes it any worse or better. Front end loads are front end loads regardless of who the prey is. For...
by JW-Retired
Tue Feb 19, 2019 9:14 am
Forum: Personal Finance (Not Investing)
Topic: When to take SS
Replies: 16
Views: 1785

Re: When to take SS

We are looking to retire around age 60-61. Wife is a teacher with pension (California). As a teacher she is not eligible for Social Security (only fair since she doesn't pay in), nor will she get 1/2 of mine. What I've recently learned is she will NOT get my SS check if I expire before her. Given t...
by JW-Retired
Fri Feb 15, 2019 7:42 pm
Forum: Personal Investments
Topic: Employer 401K
Replies: 20
Views: 2524

Re: Employer 401K

TKRN2002, I see you added your gross salary is $76K + another 2nd job of around $6k. Less the filing single std deduction of $12k that puts you at a $70k taxable income and a marginal federal tax rate of 22%. That 22% rate extends down to $38.7k taxable income for a single filer, so doing all Roth c...
by JW-Retired
Thu Feb 14, 2019 8:36 am
Forum: Personal Investments
Topic: Employer 401K
Replies: 20
Views: 2524

Re: Employer 401K

It would help us if you could give us approximate income data in dollars instead of %. If you are mostly contributing to a Roth 401k that implies that your income and tax bracket is pretty low now, and you expect to be switching to a pre-tax 401k later when your bracket is higher. Is that the case? ...
by JW-Retired
Tue Feb 12, 2019 8:50 am
Forum: Personal Investments
Topic: TSP - how to allocate funding between ROTH TSP and Traditional TSP
Replies: 11
Views: 761

Re: TSP - how to allocate funding between ROTH TSP and Traditional TSP

Question: I had been under the assumption that we should start switching most funding to ROTH IRAs (although we've only done 1/2 and 1/2 for the TSP for the last few years). After reading here, I'm not sure if we should move away from the ROTH TSP and just fully fund the traditional TSP. And yes, I...
by JW-Retired
Mon Feb 11, 2019 9:38 am
Forum: Personal Investments
Topic: Should I transfer taxable account from Fidelity to Vanguard?
Replies: 12
Views: 1279

Re: Should I transfer taxable account from Fidelity to Vanguard?

You need to determine the capital gain in these to see if you can sell them without substantial tax consequences. Any of those that have negative (loss) or modest gain I would sell immediately and invest in a 3-fund portfolio No need to move to Vanguard for access to cheap index ETFs or MFs - Fidel...
by JW-Retired
Mon Feb 11, 2019 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Big IRA accounts
Replies: 74
Views: 8781

Re: Big IRA accounts

when I retire the divisor is about 27.4 which turns out to be about 150k where did you get 250k from What is the total income picture? It sounds like you and spouse are still working, and already taking SS, and have a taxable investment account in addition to the $4M 401k's? Probably too late for m...
by JW-Retired
Sat Feb 09, 2019 11:16 am
Forum: Personal Consumer Issues
Topic: Credit ID hacked, got $4900 T-Mobile bill
Replies: 36
Views: 4561

Re: Credit ID hacked, got $4900 T-Mobile bill

Rupert wrote:
Sat Feb 09, 2019 9:21 am
Did you ever file police reports?
That's been advised several times but I don't see that OP has ever hinted that he/she did that. Doing the report may be the key to stopping these ongoing troubles?
JW
by JW-Retired
Sat Feb 02, 2019 10:15 am
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax benefit rule?
Replies: 11
Views: 580

Re: How to calculate tax benefit rule?

This is a routine thing so don't start guessing what to do. It just gets carried over to the following year. A few days ago I got a 1099 G like this again this year. Also usually have AMT. Sometime soon you should get a 2018 form 1099 G for that $4000 state tax refund. It's 2018 income and your 2018...
by JW-Retired
Thu Jan 31, 2019 11:07 am
Forum: Personal Investments
Topic: TLH & Capital Gains
Replies: 6
Views: 325

Re: TLH & Capital Gains

The Wizard wrote:
Wed Jan 30, 2019 5:19 pm
The usual rule is that you should choose TLH partners that you are happy keeping forever.
reddison,
Definitely...... and it looks to me like the partners you selected will be fine forever.
JW
by JW-Retired
Tue Jan 29, 2019 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion questions
Replies: 20
Views: 851

Re: Roth IRA conversion questions

I'm also just realizing, how does a 401k play into this? Should I add that amount to the RMD calculator? I actually have a lot in my 401k, which could put RMD (if RMD has to be taken like a traditional) back near my current AGI, so possibly same tax bracket as today, but still, not a higher one I d...
by JW-Retired
Mon Jan 28, 2019 9:43 am
Forum: Personal Consumer Issues
Topic: Portable Air Compressor Adapter
Replies: 12
Views: 859

Re: Portable Air Compressor Adapter

I'm going to jump in and point out there is now a tire air compressor powered by your drill's Lithium battery. It looks like a drill but it's a truly portable tire inflator with an air hose only about 18" long. If you already have the same brand drill you use those batteries so it's very cheap. I ca...
by JW-Retired
Wed Jan 23, 2019 11:42 am
Forum: Personal Investments
Topic: Marketwatch - If everyone invested like John Bogle, markets couldn’t work right
Replies: 54
Views: 3377

Re: Marketwatch - If everyone invested like John Bogle, markets couldn’t work right

Advising people simply to hold the market is advising them to free-ride on the wisdom of others who do not follow such a strategy. If everyone followed Bogle’s advice, market prices would turn into nonsense and would provide no direction to economic activity. Obviously, everyone won't follow Bogle'...
by JW-Retired
Mon Jan 21, 2019 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: After-tax 401(k) to Roth IRA conversion - confused about tax treatment
Replies: 29
Views: 1638

Re: After-tax 401(k) to Roth IRA conversion - confused about tax treatment

The only thing is, as far as investing goes, the entire 401k money ( pre-tax, roth 401k, after tax) is treated as a common pool and invested as such. That is, I cannot specifically invest my after-tax contributions, separate from pre-tax ones. However, after-tax contribution (and earnings on it) ar...
by JW-Retired
Sun Jan 13, 2019 4:52 pm
Forum: Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 56
Views: 5824

Re: Does anyone have entire 401K in bonds?

Current income with company + 3 side hustles is $400K/year and living on $25-30K the rest will be invested/saved. This is why I thought 100/0 was taking on unnecessary risk for not too much added benefit since I’m adding so much so fast. I’d like to be FI by 35 - I might keep going for much longer ...
by JW-Retired
Sun Jan 13, 2019 10:32 am
Forum: Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 56
Views: 5824

Re: Does anyone have entire 401K in bonds?

I’m currently at a near 100% equites allocation and have been wanting to switch to a 70/30 asset allocation, which I would always keep forever. I’m 33 and plan to be FI in a few years and potentially RE as well, but not sure if I’d retire. I might stay on and earn extra to aid family. I’ve realized...
by JW-Retired
Sat Jan 12, 2019 11:10 am
Forum: Investing - Theory, News & General
Topic: SS/Pension/etc as bond allocation?
Replies: 25
Views: 1692

Re: SS/Pension/etc as bond allocation?

OP, you've been here long enough to know... pension is income/cash flow, it has nothing to do with bonds in your portfolio... it simply means that the portfolio won't need to supply as much in your retirement ... But I have been here long enough to realize that Jack Bogle himself recommends treatin...
by JW-Retired
Sat Jan 12, 2019 9:55 am
Forum: Personal Investments
Topic: Tax software for filing state returns
Replies: 12
Views: 552

Re: Tax software for filing state returns

If you are willing to print your state return and US mail it in, there is typically no charge. At least that's what I always do using H&R-block software. (HR-Block Deluxe)
JW
by JW-Retired
Fri Jan 11, 2019 9:50 am
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 7809

Re: BHers, what is your Roth IRA %?

Of the retirement funds, 88% are ROTH. We expect to have all the non-ROTH converted to ROTH within the first few years of retirement. Presumably, you'd want at least SOME taxable income every year, to at least take advantage of deductions. As I indicated in my post, 66% of our portfolio is taxable ...
by JW-Retired
Tue Jan 08, 2019 11:21 am
Forum: Investing - Theory, News & General
Topic: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]
Replies: 145
Views: 8849

Re: More Nanny State From Vanguard

Why do you care what others do in managing their investments if it doesn't impact you? I don't care if doesn't impact me, but I suspect it does in terms of Vanguard's costs. All the very frequent trading is surely way more costly for Vanguard then my handful of trades a year. We boring Bogleheads a...
by JW-Retired
Tue Jan 08, 2019 10:57 am
Forum: Personal Investments
Topic: RMD planning
Replies: 19
Views: 1737

Re: RMD planning

BarbBrooklyn wrote:
Mon Jan 07, 2019 6:24 pm
Due to a 58K taxable inheritance, we will be in 24% bracket this year.
Can you explain what sort of "taxable inheritance" this is. I've not heard of one before. Is it a tIRA that you are forced to take in one lump for some reason?
JW
by JW-Retired
Sun Jan 06, 2019 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question hindsight
Replies: 65
Views: 5038

Re: Social Security question hindsight

My tax difference is the 15% of SS not Federal taxed, plus no state tax at all on SS by California (versus 9% marginal on every other income I might have). Per my tax software last year, that added up to I get to keep 67% of my SS marginal income versus only 52% of my marginal pension income. Do yo...
by JW-Retired
Sun Jan 06, 2019 12:04 pm
Forum: Investing - Theory, News & General
Topic: How to compare active managed vs index
Replies: 24
Views: 764

Re: How to compare active managed vs index

So it sounds like you are all saying you you pick the one with the lowest ER and you don't look at any history. Yes, no history and we use index funds that are weighted to the entire investment market. There is no posse of salesman and highly paid gurus & researchers that are draining money out of ...
by JW-Retired
Sun Jan 06, 2019 11:05 am
Forum: Investing - Theory, News & General
Topic: How to compare active managed vs index
Replies: 24
Views: 764

Re: How to compare active managed vs index

Comparing anything but the cost drag is futile. Given there are thousands of active funds out there, you can typically find some of them that did better than the indexes over many previous years just by luck. Active fund peddlers like to offer you these "good funds" since they are an easier sell. Wh...
by JW-Retired
Sun Jan 06, 2019 9:18 am
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting Question
Replies: 3
Views: 255

Re: Tax Loss Harvesting Question

My thought is that if performed over the course of years, couldn’t this substantially diminish your basis? Sure it reduces your overall basis, but this has no effect unless you eventually sell the appreciated taxable assets. Bogleheads try do very little of that. I'm 5 years retired and still haven...
by JW-Retired
Sat Jan 05, 2019 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question hindsight
Replies: 65
Views: 5038

Re: Social Security question hindsight

In our own 70-something case the tax deferred account RMD's get taxed at a rate 50% higher then our SS income does. I did delay SS to 70 for survivor benefit reasons, but at the time hadn't really appreciated such a huge taxation difference windfall too. :D JW JW, I do not recall all the ways I loo...
by JW-Retired
Sat Jan 05, 2019 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question hindsight
Replies: 65
Views: 5038

Re: Social Security question hindsight

I took mine at FRA (age 66) and retired that year. I was undecided as to what to do and the SS person suggested that I take it, so I did. I could easily have covered the missing SS money in my living expenses with my retirement payout. At that time, some experts claimed the payout was actuarially e...