Search found 7065 matches

by JW-Retired
Sun Jun 16, 2019 10:58 am
Forum: Personal Investments
Topic: Should I invest 100k into a total index or do it slowly
Replies: 50
Views: 4616

Re: Should I invest 100k into a total index or do it slowly

FarmD, I would invest it all at once. However, it needs to be your psychology that drives this. If all-at-once might do damage to your future investing nerve if the market goes bad soon, then do it slowly. The slow approach can give you a mental win-win.... i.e., if you put it in slowly and the mark...
by JW-Retired
Tue Jun 11, 2019 10:22 am
Forum: Investing - Theory, News & General
Topic: Expense Ratio for Employer 401K High?
Replies: 12
Views: 767

Re: Expense Ratio for Employer 401K High?

Employer matches up to 3% so want to take advantage of that, but something doesn't make sense. When I look up the expense ratio of the 2030 Target Dated Fund on the AF website, it is showing 0.72. However, when I look at the information provided to her by work, if she selects this fund, the expense...
by JW-Retired
Sun Jun 02, 2019 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Any Alternative to Quicken for Us?
Replies: 4
Views: 574

Re: Any Alternative to Quicken for Us?

Thanks for your opinions...... I decided to go with another Quicken.
JW
by JW-Retired
Sat Jun 01, 2019 9:48 am
Forum: Personal Investments
Topic: I Need Advice Fixed-Income Portion ($ 3 million total Taxable Account)
Replies: 5
Views: 831

Re: I Need Advice Fixed-Income Portion ($ 3 million total Taxable Account)

Some say go with VTEB, others suggest VWIUX instead of VTEB, and yet some others suggest a 30/40/30 VMLUX/VWIUX/VWLUX. You might prefer the mutual fund version of (VWIUX) instead of the ETF (VTEB). I find it easiest to take the option to reinvest all fund earnings back into the same mutual funds. I...
by JW-Retired
Fri May 31, 2019 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Any Alternative to Quicken for Us?
Replies: 4
Views: 574

Any Alternative to Quicken for Us?

Wife and I still generate a moderate number of checks over 3 separate accounts. One of the accounts needs us to supply a very simple annual report to a couple of partners in a jointly owned property, and the Quicken checking account transactions for the year serves for most of that. The 3 checking a...
by JW-Retired
Tue May 28, 2019 9:37 am
Forum: Personal Investments
Topic: Optimizing Asset Allocation
Replies: 15
Views: 1483

Re: Optimizing Asset Allocation

Would you recommend following my advisor's plan or sticking with my current AA? Current AA. The advisor's plan with 4 funds around 1% expense would be a killer for most Bogleheads. There is just no reason to use high expense funds when low expense funds are available at Vanguard/Fidelity/Schwab/......
by JW-Retired
Mon May 27, 2019 11:59 am
Forum: Personal Investments
Topic: Allocation to individual stocks/bonds
Replies: 13
Views: 761

Re: Allocation to individual stocks/bonds

For those of you who combine indexing with some individual active asset picking, how much of your portfolio do you allocate to active positions versus passive positions? I had regretted owning any individual stocks for a long time. For new investments we had switched to mutual funds by the 90's, bu...
by JW-Retired
Mon May 27, 2019 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Parents as dependents and gift tax
Replies: 13
Views: 1187

Re: Parents as dependents and gift tax

I'd rather not get too specific about my finances but will say that I expect to have a lot of money in the future and I'd like to plan accordingly. My suggestion is to get a 709 form and it's instructions. See if you feel you can understand it well enough to DIY a large gift. JW https://www.irs.gov...
by JW-Retired
Wed May 22, 2019 9:24 am
Forum: Investing - Theory, News & General
Topic: Delaying social security = harming nest egg?
Replies: 74
Views: 6242

Re: Delaying social security = harming nest egg?

It seems that people with a substantial nest egg are the ones who can more safely afford to deplete their portfolio while delaying social security. (At the same time, these are the people who least need the resulting higher monthly social security check.) But isn’t it risky for people with more mod...
by JW-Retired
Tue May 14, 2019 9:03 am
Forum: Personal Investments
Topic: Social security should you take early if you don’t need the money?
Replies: 24
Views: 2799

Re: Social security should you take early if you don’t need the money?

Consider the fate of two retirees, Rich and Delores. Both retire at age 62....let's say they were both laid off and cannot find additional work. At time of retirement, Rich has $1,000,000 in financial assets. Delores has $10,000. Both would receive $20K/year from SS if they started benefits at age ...
by JW-Retired
Wed May 08, 2019 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Filing for a Restricted SS Claim
Replies: 16
Views: 960

Re: Filing for a Restricted SS Claim

Has anyone ever filed a restricted application on line? I would think it would be error free if it is possible to file that way. Yes, I did mine online but it was not error free. They somehow ignored my crystal clear instructions and went with starting my own age 66 benefits instead of spousal. I o...
by JW-Retired
Sun May 05, 2019 4:08 pm
Forum: Personal Investments
Topic: Boglehead investing through a major downturn
Replies: 36
Views: 3764

Re: Boglehead investing through a major downturn

My question: what was it like for people who held to a Boglehead approach through 2007/8/9/10? What did it feel like to simply keep contributing the max to your 401(k) into a down market that was an extremely down market? Did you rebalance into equities? Did you keep contributing the max? ....... B...
by JW-Retired
Fri Apr 26, 2019 8:19 am
Forum: Personal Investments
Topic: Taking loss vs TLH - Total International
Replies: 22
Views: 1092

Re: Taking loss vs TLH - Total International

Come tax time, how do I make sure I deduct 3K from taxable income? You'll complete Schedule D, and if you have a loss, it'll tell you to write -$3000 on the relevant 1040 line. (Or the actual amount of the loss if not as large as $3K.) The next year, you'll do some math in a worksheet figuring out ...
by JW-Retired
Mon Apr 22, 2019 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Benefits Strategy
Replies: 29
Views: 2416

Re: Social Security Benefits Strategy

According to the Open Social Security Model, I should: - Have my spouse file her retirement benefit to begin 2/2027 at age 62 and 1 month - File for my retirement benefit to begin 1/2032 at age 70 and 0 months - Have my spouse should file for her spousal benefit to begin 1/2032 at age 67 and 0 mont...
by JW-Retired
Sat Apr 13, 2019 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Our situation: should my spouse wait till age 70 to claim Social Security?
Replies: 5
Views: 1045

Re: Our situation: should my spouse wait till age 70 to claim Social Security?

Thoughts? I may be missing something and would appreciate any guidance about that. What is your Federal + State marginal tax rate difference between Social Security and other income going to be? If you will pay at a rate half again more on your RMDs versus on SS (as I do), that's a compelling reaso...
by JW-Retired
Tue Apr 09, 2019 8:53 am
Forum: Investing - Theory, News & General
Topic: Did I read this correctly? SS and your AA
Replies: 36
Views: 4094

Re: Did I read this correctly? SS and your AA

Do I understand this right, it says that social security should be considered as a part of your asset allocate under bonds? So if my portfolio is 70/30 that in reality it is 70minus SS/ 30 plus SS What do you think? I think if you picked an AA of 70/30 equities/actual bonds correctly, SS was alread...
by JW-Retired
Sun Apr 07, 2019 9:42 am
Forum: Personal Finance (Not Investing)
Topic: "Worried about being pushed into 'higher tax bracket' "
Replies: 25
Views: 2065

Re: "Worried about being pushed into 'higher tax bracket' "

Tlmlb wrote:
Sun Apr 07, 2019 9:11 am
Isn't it obvious? People think tax brackets operate like a cliff vs. stair steps.
Yep. IMO, even more common is people don't know that Medicare premium brackets really do operate with nearly a $1k/year "cliff".

I didn't know that until it got me!
JW
by JW-Retired
Sat Apr 06, 2019 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Any reason for younger wife not to file at FRA? When her benefit is much smaller.
Replies: 16
Views: 1070

Re: Any reason for younger wife not to file at FRA? When her benefit is much smaller.

However, one of my main reasons to wait till 70 is, unlike my family, her family has longer life expectancy. So, if I die she will get the 100% of what I got by waiting till 70. Yes, a very good reason. The other really good reason is that SS is usually federal + state income taxed much less than o...
by JW-Retired
Mon Apr 01, 2019 9:58 am
Forum: Personal Investments
Topic: 1st Time Backdoor Roth - Am I Doing This Right?
Replies: 14
Views: 539

Re: 1st Time Backdoor Roth - Am I Doing This Right?

1. Made non-deductible contributions to our (wife and mine) tIRAs (emptied out) for $5500 and $6000. What did you mean by "emptied out"? Where did the implied previous funds go? JW I previously had a rollover IRA (for a few thousand) which I transferred over to my 401K. That's the happy answer! :be...
by JW-Retired
Mon Apr 01, 2019 9:35 am
Forum: Personal Investments
Topic: 1st Time Backdoor Roth - Am I Doing This Right?
Replies: 14
Views: 539

Re: 1st Time Backdoor Roth - Am I Doing This Right?

RJC wrote:
Mon Apr 01, 2019 8:13 am
1. Made non-deductible contributions to our (wife and mine) tIRAs (emptied out) for $5500 and $6000.
What did you mean by "emptied out"? Where did the implied previous funds go?
JW
by JW-Retired
Sun Mar 31, 2019 12:50 pm
Forum: Personal Investments
Topic: Considering Roth IRA - Looking for Thoughts
Replies: 20
Views: 1159

Re: Considering Roth IRA - Looking for Thoughts

Based on the responses about splitting the 3-fund portfolio between my 403(b) and Roth IRA, could I do the same with a Roth 403(b) instead of the IRA? It's basically the same rules, but I can put a lot more money in the ROTH 403(b), right? I don't get your "I can put a lot more money in the Roth" r...
by JW-Retired
Sun Mar 31, 2019 10:22 am
Forum: Personal Investments
Topic: Considering Roth IRA - Looking for Thoughts
Replies: 20
Views: 1159

Re: Considering Roth IRA - Looking for Thoughts

The Roth is a very good thing to have, but I would put no bonds or weird stuff and just one equity like total stock market or total international in it. Given that your 403b is likely to be 3 or 4 times bigger than your Roth forevermore, do any tilting and rebalancing in the 403b.
JW
by JW-Retired
Fri Mar 29, 2019 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: When to take social security for maximum inheritance?
Replies: 31
Views: 2820

Re: When to take social security for maximum inheritance?

IMO, unless you are going to be paying very little in income taxes, the easy answer is to aim to maximize whatever type of income that is taxed least. That is usually social security income. Counting both federal and state income tax, my other-than-Social Security income is taxed at a rate right aro...
by JW-Retired
Fri Mar 29, 2019 10:04 am
Forum: Personal Investments
Topic: Back door Roth strategy
Replies: 30
Views: 1681

Re: Back door Roth strategy

We make too much to do deductable IRAs or normal Roth's. I have 401k with high fees she has Simple IRA with high fees. We roll her simple each year into VG TIRA. She has HSA with hdhp. I don't have that option. Is there anything else we should be doing other than piling the rest into taxable? We ha...
by JW-Retired
Thu Mar 28, 2019 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Income Jump, Options To Resolve Roth Issues
Replies: 7
Views: 991

Re: Income Jump, Options To Resolve Roth Issues

2 - We've never done a backdoor Roth. Would that involve moving the funds to a tIRA at VG ( which would need to be a new account/fund, since we don't have tIRA with VG ), ........................... The way you said this makes me think you might have a tIRA at some other place? Just in case...........
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: 283

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: 5504

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: 26
Views: 1107

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: 785
Views: 77654

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: 645

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: 4336

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: 7377

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: 822

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: 947

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: 947

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: 1095

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: 1192

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: 7453

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: 2546

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: 1192

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: 968

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: 7436

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: 301

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: 301

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: 5090

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: 45
Views: 8201

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: 7499

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: 6591

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: 7873

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: 1815

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...