Search found 6355 matches

by JW-Retired
Thu Oct 19, 2017 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth IRA – is it worth paying taxes now on gains?
Replies: 5
Views: 351

Re: Back Door Roth IRA – is it worth paying taxes now on gains?

I’m considering converting my nondeductible traditional IRA with 33% gains to a roth ira (back door approach). Our income exceeds the normal Roth IRA limits. We have no other IRAs, 100% of the contributions were taxed, but upon conversion I will have to pay a significant amount of taxes on the gain...
by JW-Retired
Thu Oct 19, 2017 10:18 am
Forum: Investing - Help with Personal Investments
Topic: 401k to traditional IRA with Backdoor Roth
Replies: 4
Views: 310

Re: 401k to traditional IRA with Backdoor Roth

From what i understand when I do backdoor conversion I have to take into account all my IRA account. Hence if my 401k is moved to personal IRA than I need to convert that as well. This will be big tax implication which i would like to avoid. - Is there a way to get away with this situation, where I...
by JW-Retired
Wed Oct 18, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Help Me Think About Roth Conversions and Retirement?
Replies: 12
Views: 1175

Re: Help Me Think About Roth Conversions and Retirement?

Strayshot, I already have that plotted out as you suggest. And yes, I will have a very generous pension when I retire - nearly 40 years of service in total. Current tax bracket: 33% + 9.3% - for 2017-2025. Retire Feb 2026, age 60: One month income, 10 months retirement income, fall to 25% Fed and 9...
by JW-Retired
Tue Oct 17, 2017 4:31 pm
Forum: Investing - Theory, News & General
Topic: 401(k) Rollover experience with Vanguard Question
Replies: 4
Views: 344

Re: 401(k) Rollover experience with Vanguard Question

All good. Never has taken us more than 4 or 5 working days going from another mutual fund company to Vanguard. Maybe a couple of days more the one time it was from an employer pension plan and they insisted on sending the check for Vanguard through me. Otherwise, we always choose to have Vanguard al...
by JW-Retired
Tue Oct 17, 2017 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security - Maximizing a couples benefits
Replies: 35
Views: 2638

Re: Social Security - Maximizing a couples benefits

Thanks to some of you. Priceless 8-) Yes, that comment made me laugh also. I know this isn't what mrgeeze wants to hear, but I'll agree with the others (who are not being thanked) that he should wait as long as possible to claim, to maximize the benefit for the survivor. My husband is 7 years older...
by JW-Retired
Tue Oct 17, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 850

Re: Help w/ parents investments

But the counter argument is that if he continues to work at his business for 5-10 years and isn't withdrawing anything and remains in a high equity position and his accounts grow significantly, then when he finally starts withdrawing what he needs, it won't be a 3% withdrawal, it might be 1-2%. (I ...
by JW-Retired
Tue Oct 17, 2017 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 850

Re: Help w/ parents investments

It is absolutely correct that if there is a risk here to be managed by reducing stock allocation, then that should be done now. I differ somewhat on the risk, however. At a 3% withdrawal rate, if that should come to pass, the risk to continued retirement income is not much more or even any more for...
by JW-Retired
Tue Oct 17, 2017 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 850

Re: Help w/ parents investments

Because they aren't relying on the retirement accounts at all, their rationale was to put it all in stocks as a way to maximize long term growth for their estate. My Dad did say that if his business income was suddenly zero and had to start withdrawing from the retirement accounts, he would change ...
by JW-Retired
Mon Oct 16, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Making a Roth IRA for my Dad
Replies: 31
Views: 1207

Re: Making a Roth IRA for my Dad

Yup this is exactly what I'm trying to do. I was under the impression you could open a Roth IRA with any amount you want, and that you were just limited to the contribution in the subsequent years ($5,500/6,500) but I'm not sure. Does anyone know this? Yes, 99% of us here know for sure your "impres...
by JW-Retired
Sun Oct 15, 2017 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating Taxes
Replies: 8
Views: 694

Re: Estimating Taxes

multiham wrote:
Sun Oct 15, 2017 5:31 pm
Thank you, I will check out the spreadsheet. I created one myself, but I don't have 100% confidence in my Excel skills or my full understanding of the tax laws!
If you are in AMT territory it gets awfully complicated. I would at least check it against the on-line tax calculators.
JW
by JW-Retired
Sun Oct 15, 2017 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security - Maximizing a couples benefits
Replies: 35
Views: 2638

Re: Social Security - Maximizing a couples benefits

See https://www.ssa.gov/pubs/EN-05-10084.pdf Social Security uses the deceased worker’s basic benefit amount to calculate the percentage survivors can get. The percentage depends on the survivor’s age and relationship to the worker. If the worker who died was getting reduced benefits, we’ll base you...
by JW-Retired
Sun Oct 15, 2017 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security - Maximizing a couples benefits
Replies: 35
Views: 2638

Re: Social Security - Maximizing a couples benefits

Not really an expert, but I believe the higher earner should wait until at least FRA to maximize the survivor benefit for the lower earning spouse. Assuming OP lives at least to FRA, the widow benefit will be the high earner's benefit amount at the time he dies. Maximizing the survivor benefit for ...
by JW-Retired
Sun Oct 15, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security - Maximizing a couples benefits
Replies: 35
Views: 2638

Re: Social Security - Maximizing a couples benefits

Not really an expert, but I believe the higher earner should wait until at least FRA to maximize the survivor benefit for the lower earning spouse. Assuming OP lives at least to FRA, the widow benefit will be the high earner's benefit amount at the time he dies. Maximizing the survivor benefit for ...
by JW-Retired
Sun Oct 15, 2017 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Estimating Taxes
Replies: 8
Views: 694

Re: Estimating Taxes

I would like to run some scenario's for my 2018 taxes. I usually end up paying a small amount of AMT. I have some stock options that I need to exercise before 12/31/18 and want to know their impact if I exercise them (or part of them) this year vs. next year. What software or maybe a spreadsheet so...
by JW-Retired
Sat Oct 14, 2017 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Innovis and ChexSystems freeze confirmation letters
Replies: 40
Views: 5430

Re: Innovis and ChexSystems freeze confirmation letters

We actually got credit reports from both Innovis and ChexSystems first (by mail) to see what they contained. It was pretty light. We then froze them both on line, which happened immediately, but the PINS to unfreeze them was to be sent by US mail. Those didn't reach us yet as it hasn't been much ove...
by JW-Retired
Sat Oct 14, 2017 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question regarding estimated taxes
Replies: 6
Views: 403

Re: Tax question regarding estimated taxes

eagleeyes wrote:
Sat Oct 14, 2017 9:27 pm
Is there any particular forms to fill out? Do I need a tax guy doing the work?
https://www.irs.gov/pub/irs-pdf/f1040es.pdf
by JW-Retired
Sat Oct 14, 2017 7:46 pm
Forum: Investing - Theory, News & General
Topic: What's your asset allocation and why?
Replies: 160
Views: 13705

Re: What's your asset allocation and why?

Before Bogleheads banned polls there were "what's your AA polls". Old ones showing AA versus age are still available.

See here for example: http://www.bogleheads.org/forum/viewtop ... 2#p1224012

I doubt if new polls would be much different.
JW
by JW-Retired
Sat Oct 14, 2017 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: First time investing - Invest now or wait?
Replies: 14
Views: 1018

Re: First time investing - Invest now or wait?

401k - 53k (contribution at max and employee matches 50%) Please let me know your thoughts. I would really appreciate if you can give me some advice :) Thank you. Advice: the $53k sitting there in 401k cash seems to be the main thing to worry about. I would just invest all at once at 70/30 in your ...
by JW-Retired
Fri Oct 13, 2017 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Intentionally Defective Grantor Trust to avoid estate tax limit?
Replies: 20
Views: 1640

Re: Trust to avoid estate tax limit?

Given the large size of the estate I take my previous comment back. Your Mom might be on the right track.
JW
by JW-Retired
Fri Oct 13, 2017 9:03 am
Forum: Investing - Theory, News & General
Topic: What's your asset allocation and why?
Replies: 160
Views: 13705

Re: What's your asset allocation and why?

60/40 because that's always been our target. We had been drifting up from that for a long time but just yesterday I really shocked myself! Actually sold SP-500 equities in the 401k to re-balance back close to 60/40. :shock:

I don't really know what came over me?
JW
PS: age 73
by JW-Retired
Fri Oct 13, 2017 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Intentionally Defective Grantor Trust to avoid estate tax limit?
Replies: 20
Views: 1640

Re: Trust to avoid estate tax limit?

Jack FFR1846 wrote:
Fri Oct 13, 2017 7:47 am
Trusts aren't cheap to set up and keep running.
Yes, and IMO the total lack of information on estate size from the OP is a pretty strong hint mom is being sold something she doesn't need.
JW
by JW-Retired
Thu Oct 12, 2017 8:12 am
Forum: Investing - Help with Personal Investments
Topic: Should I keep my Stocks?
Replies: 42
Views: 3615

Re: Should I keep my Stocks?

State Street S&P 500 Equity Index Expenses Per $1,000 Investment $0.10 Expense Date 06-01-2017 I don't see anything about front loads. I will dig deeper and see if I can figure that out. Here are the other available funds ER's that I am not invested in. Vanguard 2030 0.07% Vanguard 2035 0.07% MetWe...
by JW-Retired
Wed Oct 11, 2017 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Should I keep my Stocks?
Replies: 42
Views: 3615

Re: Should I keep my Stocks?

Questions: 1. How do I decide my AA? 2.What is a taxable account? Deciding your AA the Boglehead way always been a murky process to me. You do definitely want to have enough bonds in your portfolio that you won't freak out and sell stocks low if when the next financial crisis happens and your stock...
by JW-Retired
Tue Oct 10, 2017 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing tax efficiently—and simply?
Replies: 7
Views: 722

Re: Rebalancing tax efficiently—and simply?

Background, if helpful: STAR SEP-IRA: 64% of my nestegg (NOT the fund in question) STAR taxable: 23% of my nestegg (the fund in question) Prime MMF: 13% of my nestegg I have no losses to harvest. I've made only 4 lump-sum purchases of the taxable STAR (2008, 09, 13 and early 16). Almost all my capi...
by JW-Retired
Tue Oct 10, 2017 8:28 am
Forum: Personal Finance (Not Investing)
Topic: What do you do with your empty inkjet cartridges?
Replies: 22
Views: 1491

Re: What do you do with your empty inkjet cartridges?

I've tried refilling our black inkjet cartridges at Costco several times now for a couple of different printers. Mostly the printing result from the refills was poor. So it's the trash now.
JW
by JW-Retired
Mon Oct 09, 2017 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Should I keep my Stocks?
Replies: 42
Views: 3615

Re: Should I keep my Stocks?

Now after focusing solely on Boglehead I see, and understand, the three fund strategy and its effectiveness. So yes, I am looking for specific suggestions on those three, or four, funds. Sorry to complicate things but we need more information to do this right. We shouldn't be looking at just one ac...
by JW-Retired
Sun Oct 08, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: SS Benefit checks?
Replies: 13
Views: 1760

Re: SS Benefit checks?

This is the Official calendar for when the SS payments are made depending on your birth date in the month. It will always be either the 2nd, 3rd, or 4th Wednesday of the month.
https://www.ssa.gov/pubs/EN-05-10031-2017.pdf
JW
by JW-Retired
Sun Oct 08, 2017 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: Should I keep my Stocks?
Replies: 42
Views: 3615

Re: Should I keep my Stocks?

Yes he had me in about 18 mutual funds. I'll be eternally grateful for finding this website while trying to understand the fees I was paying. Did you look at the Vanguard funds I chose? ( I do not pay for an advisor ) I have been seeing a lot of Bogleheads saying they put their money in VTSAX, VTIA...
by JW-Retired
Sun Oct 08, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Should I keep my Stocks?
Replies: 42
Views: 3615

Re: Should I keep my Stocks?

I am just trying to understand why EJ advisors recommend putting half of your money in mutual funds and half in individual equities. Maybe some can answer that as well. We see lots of EJ deserter portfolios but Individual equities are fairly unusual. It's probably just this particular adviser's twi...
by JW-Retired
Sat Oct 07, 2017 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: I could use some advice on my IRA situation. Not sure what to do.
Replies: 15
Views: 1354

Re: I could use some advice on my IRA situation. Not sure what to do.

I funded my IRA with my inheritance money and not from my paychecks. (that doesn't matter in the slightest as long as your paycheck was enough to cover it) For years I’ve wanted to take this Traditional IRA and turn it into a Roth IRA. No matter how many times I think I understand what a backdoor r...
by JW-Retired
Sat Oct 07, 2017 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: 2M savings investment help
Replies: 37
Views: 4960

Re: 2M savings investment help

State : MA Tax rate : 28% and 5.15% (together, pull in about 350k annually) Age : 43 and 40 (she) At $350k gross income, I would think your tax bracket would definitely call for muni-bonds, especially since you said at some point you expect to be back up in the top bracket in a very few years. Actu...
by JW-Retired
Sat Oct 07, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Bogle-oriented financial advisor in my area
Replies: 13
Views: 1199

Re: Bogle-oriented financial advisor in my area

Of course since my employee 401K is with Fidelity I need to keep that there but I still have most of my money outside that. I guess what I have the most problem with is the thought of rebalancing. I feel like tax issues etc. may be more that I can deal with. There is really only one tax issue. If y...
by JW-Retired
Sat Oct 07, 2017 10:39 am
Forum: Investing - Help with Personal Investments
Topic: Tradittional vs Roth?
Replies: 6
Views: 519

Re: Tradittional vs Roth?

I feel like I have a pretty substantial nest egg. It hit me that I will need to start paying taxes on withdrawal of 401/IRAs when the time comes. I am 60 and currently in the 28% bracket and still working but looking forward to semi-retirement soon. .......................... Should I be putting ev...
by JW-Retired
Sat Oct 07, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Third time in my 32 year career I have been laid off
Replies: 87
Views: 10022

Re: Third time in my 32 year career I have been laid off

Questions: 1. Firecalc says I can retire on 60,000 a month for 30 years. Should I? I have not even considered retirement yet. I am thinking 62. You probably could. 4% of $1.6 million - $64K, plus rental income. Then in 10-15 years social security kicks in. Should you? Only you can figure that out. ...
by JW-Retired
Fri Oct 06, 2017 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA
Replies: 7
Views: 428

Re: Rollover IRA

Is it advisable to keep investments in a Rollover IRA? I would only be able to do non-deductible contributions as my income is past the limit. .............................................. I'm just trying to figure out if leaving over 100K in a rollover IRA invested in the VFORX fund without ever ...
by JW-Retired
Thu Oct 05, 2017 8:28 pm
Forum: Investing - Theory, News & General
Topic: Throwing Down with a Primerica Advisor
Replies: 45
Views: 3221

Re: Throwing Down with a Primerica Advisor

Hey all, Thanks for the feedback. For those concerned, there is literally not a thing she could say that would ever convince me to change investment strategies. Like Eva. 😜 I never mind discussing investing with people. I'm mostly just interested to see what kind of pitch she makes me and how she a...
by JW-Retired
Thu Oct 05, 2017 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to convince my sister not to use a financial advisor
Replies: 59
Views: 3976

Re: Trying to convince my sister not to use a financial advisor

celia wrote:
Thu Oct 05, 2017 5:49 pm
I'm pretty sure she will want to leave the advisor in the next bull market.
Bear market??
JW
by JW-Retired
Thu Oct 05, 2017 8:17 am
Forum: Investing - Theory, News & General
Topic: Throwing Down with a Primerica Advisor
Replies: 45
Views: 3221

Re: Throwing Down with a Primerica Advisor

Beyond being equipped with those two figures, are there are particular statistics you would arm yourself with? If you can't say no without arming yourself with statistics to convince her you are right and she is wrong, then IMO you are doomed. You better cancel the meeting. Welcome to the Forum! JW
by JW-Retired
Wed Oct 04, 2017 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Question
Replies: 30
Views: 2668

Re: RMD Question

OK JW you have told me I am wrong but I did NOT find the answer in IRS pub 590. I looked before I posted and I just read it again in depth. I have read all the data in IRS Pub 590 and cannot find this detail. Everything I see says wait until you are 70.5 to take any distributions to make them count...
by JW-Retired
Wed Oct 04, 2017 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement contributions - account options after Roth & Employer Plan?
Replies: 12
Views: 524

Re: Retirement contributions - account options after Roth & Employer Plan?

AA3, A taxable account is still a pretty good way to save for retirement. Qualified dividends and realized capital gains in a taxable account are taxed at a lower rate than tax deferred plan withdrawals. You can tax loss harvest in down markets. If you have a low earnings year you can realize cap ga...
by JW-Retired
Wed Oct 04, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Question
Replies: 30
Views: 2668

Re: RMD Question

Your need to check the IRS website for more details on IRA withdrawals before you are 70.5. I am pretty sure you CANNOT take out any rmd money in the year you are 70.5 before that date and count it as rmd... So if you withdraw $10k before you are 70.5 it is taxable but does not count toward your rm...
by JW-Retired
Wed Oct 04, 2017 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Should I forego a backdoor Roth IRA?
Replies: 13
Views: 1220

Re: Should I forego a backdoor Roth IRA?

My wife has made non-deductible contributions to her IRA and is taking RMDs now. The tax bother is as trivial as adding one more 1099. Since you filed 8606 forms every year that you contributed non-deductible money, your "basis" is just the sum of all those contributions. So you ought to be able to ...
by JW-Retired
Wed Oct 04, 2017 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Quick Tax Question
Replies: 10
Views: 838

Re: Quick Tax Question

I'm trying to predict my Federal Tax bracket. I believe the process is: Gross Annual Income - Annual Pre tax retirement contributions - Annual pre tax benefit payments (health insurance, transit etc.) - Standard mfj deduction & exemptions* (we don't itemize) = Taxable Income (match to corresponding...
by JW-Retired
Tue Oct 03, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Do you get COLA's on your Soc Security when restricting your application for Spousal Benefits?
Replies: 5
Views: 459

Re: Do you get COLA's on your Soc Security when restricting your application for Spousal Benefits?

Everyone's PIA gets modified every year there is a COLA. Yes, unless she claims before her FRA she will always get 50% of your then current PIA.
JW
ps: Unless you are confused what a PIA is? It's your full retirement age amount not your benefit itself.
by JW-Retired
Tue Oct 03, 2017 10:04 am
Forum: Investing - Theory, News & General
Topic: Is a Roth conversion a good idea if you are in the 15% tax bracket?
Replies: 39
Views: 3727

Re: Is a Roth conversion a good idea if you are in the 15% tax bracket?

Not oblivious to SS at all. It's just not going to be as large as an influence on our retirement as it is to others. My wife's career was in public school. She has her retirement accounts but was in one of the systems that opted out of Social Security and therefore will receive $0. Due to my choice...
by JW-Retired
Sun Oct 01, 2017 10:00 am
Forum: Investing - Theory, News & General
Topic: Is a Roth conversion a good idea if you are in the 15% tax bracket?
Replies: 39
Views: 3727

Re: Is a Roth conversion a good idea if you are in the 15% tax bracket?

Like retiredjg, I consider conversion to the top of the 15% bracket a no brainer for most early retirees. Part of the reason is Doc's point, once you start receiving SS Benefits marginal tax rates can increase significantly. Woodshark, Would you mind explaining something? You seem to be oblivious t...
by JW-Retired
Sat Sep 30, 2017 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall advice + Backdoor Roth
Replies: 5
Views: 855

Re: Windfall advice + Backdoor Roth

Thank you all for the replies. The reason I haven't maxed out the 401k is to build an emergency fund and put $ into a brokerage account for general savings. Is the tax advantage of the 401k worth taking longer to build up liquid savings for a down payment on a house? Or should I just use the windfa...
by JW-Retired
Sat Sep 30, 2017 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Getting father-in-law off of UBS & its 1.5% AUM fee
Replies: 27
Views: 2514

Re: Getting father-in-law off of UBS & its 1.5% AUM fee

Been on this strategy approximately, and will eventually give up - but I like the idea with the quips, and I've been trying to ridicule the FA industry, not him. We currently live together pending completion of their ADU/small house in the back yard, so there's plenty of opportunity... ...............
by JW-Retired
Fri Sep 29, 2017 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall advice + Backdoor Roth
Replies: 5
Views: 855

Re: General advice + Backdoor Roth

I have been/will continue to put 4% of my salary into my employer matched 401k and will start doing a backdoor Roth each year. Is this simplistic approach too simple? After all my research I can't tell if I can do the backdoor Roth IRA this year + roll my employer sponsored 401k into a traditional ...
by JW-Retired
Fri Sep 29, 2017 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Question: Why do people put/keep millions of dollars in investment accounts?
Replies: 66
Views: 8227

Re: Question: Why do people put/keep millions of dollars in investment accounts?

1987 (Black Monday) was worse... ~22% drop in one day. https://en.wikipedia.org/wiki/Black_Monday_(1987) Painful to watch! Yup. Twas painful (we lived in NYC at the time) and the city took it hard. Don't forget what the markets did after 9/11... On the first day of NYSE trading after 9/11, the mark...