Search found 6227 matches

by JW-Retired
Wed Aug 23, 2017 12:54 pm
Forum: Investing - Theory, News & General
Topic: Great Depression Videos on You Tube
Replies: 21
Views: 1809

Re: Great Depression Videos on You Tube

You might even get the impression that if you don't panic, and just hang on to your investments you will end up OK. Thank you JW. ............ If something similar happened today, would a BH who: a)didn't speculate, b)didn't use margin, c)was well diversified, d)had an appropriate asset allocation,...
by JW-Retired
Wed Aug 23, 2017 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: What to do in 401K when S&P500 Index Fund is the only decent fund?
Replies: 9
Views: 522

Re: What to do in 401K when S&P500 Index Fund is the only decent fund?

SimonJester wrote:
Wed Aug 23, 2017 8:54 am
Is the only real answer to put more bonds in her Roth IRA?
Maybe not. Could you make up for 100% SP500 in her 401k by putting more bonds in your tax deferred account (if you have one that's OK)?
JW
by JW-Retired
Wed Aug 23, 2017 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 36
Views: 2956

Re: Adjusting AA as retirement nears

Guess I'm weird but I don't like anything but the market to adjust my AA. A proactive adjustment I made in 1996/97 turned out to be highly premature, so I became re-balancing adverse. My AA preference is about 60/40, which it was at in early 2008, but without re-balancing (except for some new contri...
by JW-Retired
Wed Aug 23, 2017 8:26 am
Forum: Investing - Theory, News & General
Topic: Great Depression Videos on You Tube
Replies: 21
Views: 1809

Re: Great Depression Videos on You Tube

Does anyone know where to find stats for the 1929 thru 1932 period? (October 1929 thru Dec 1932, or if too hard to find, Jan 1929 thru Dec 1932) Things such as Total Return (or Total Loss) for the 3 or 4 year period for: SP 500 L/T Govt Bonds T Bills Inflation Real Estate . The Depression continued...
by JW-Retired
Tue Aug 22, 2017 9:51 am
Forum: Investing - Theory, News & General
Topic: HSA Eligibility, Medicare retroactivity, and SS Retroactive Benefits
Replies: 18
Views: 1741

Re: HSA, Medicare retroactivity & SS File Restricted and Suspend

Doing it (suspending) so your spouse could collect the spousal benefit was effectively ended by the recent change in law. If you suspend your benefit it now suspends all benefits on your account, so the spousal benefit would cease along with yours. <snip> Not in this case. The older spouse is colle...
by JW-Retired
Mon Aug 21, 2017 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to 403(b) or taxable account?
Replies: 7
Views: 628

Re: Contribute to 403(b) or taxable account?

Fortunately, she has an excellent 457(b) plan. We have decided to contribute the maximum $18k to this. Very low administrative fee and access to low ER Vanguard funds. She also is able to contribute to a 403b .... (added: but it isn't a good one) I am leaning towards (added: no 403b) but welcome an...
by JW-Retired
Mon Aug 21, 2017 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Advice on Simplifying Large Taxable Retirement Portfolio
Replies: 23
Views: 2278

Re: Seeking Advice on Simplifying Large Taxable Retirement Portfolio

My view is the government already owns that tax amount anyway. Unless disaster strikes and the stocks tank, that tax bill will surely come at some point. Maybe in an IRA, but this is a taxable account. Taxes on capital gains will go poof when the owner dies or the money is given to charity. Estate ...
by JW-Retired
Mon Aug 21, 2017 1:25 pm
Forum: Investing - Theory, News & General
Topic: I own no international stocks. Can you guess why?
Replies: 167
Views: 12038

Re: "Why" -- The Answer

Bogleheads: I could not believe my eyes when I sat down at my computer this morning to learn that my opening post (OP), made yesterday, had received 125 replies. This old teacher is grateful for each and every one. My question contained a clue " gradually reduced ": I have gradually reduced my inte...
by JW-Retired
Mon Aug 21, 2017 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Advice on Simplifying Large Taxable Retirement Portfolio
Replies: 23
Views: 2278

Re: Seeking Advice on Simplifying Large Taxable Retirement Portfolio

retiredjg and JW-Retired, Thanks for your input. I need to reduce my holdings of Stocks A & B, but will need to grapple with how quickly to do it. Dividends are not being reinvested, and all my charitable contributions can come from Stock A or B through a donor advised fund. But just selling now to...
by JW-Retired
Mon Aug 21, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: How to Undo Backdoor Roth Completely
Replies: 10
Views: 1117

Re: How to Undo Backdoor Roth Completely

The best investment option in the 401k is worse than the Vanguard 500 Index Fund by a difference of 3% return annually. That translates to 1% in the remaining year. That is easily a thousand dollars or more for a large account. Isn't this worth the efforts of undoing the backdoor Roth? I have troub...
by JW-Retired
Mon Aug 21, 2017 8:28 am
Forum: Investing - Theory, News & General
Topic: I own no international stocks. Can you guess why?
Replies: 167
Views: 12038

Re: I own no international stocks. Can you guess why?

Just before midnight will still meet Taylor's tomorrow promise. Anyone know what time zone he is in?
JW
by JW-Retired
Mon Aug 21, 2017 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Seeking Advice on Simplifying Large Taxable Retirement Portfolio
Replies: 23
Views: 2278

Re: Seeking Advice on Simplifying Large Taxable Retirement Portfolio

I could sometimes sell some of Stocks A & B without being in the top bracket, but it would take a long time to seriously reduce the holdings that way. My donor advised fund can also help there. But it seems I will also need to sell and pay tax. Agree, do some selling and pay tax. It wouldn't bother...
by JW-Retired
Sun Aug 20, 2017 3:07 pm
Forum: Investing - Theory, News & General
Topic: HSA Eligibility, Medicare retroactivity, and SS Retroactive Benefits
Replies: 18
Views: 1741

Re: HSA, Medicare retroactivity & SS File Restricted and Suspend

With all the SS changes, what's the reason to File and Suspend? Same reason it has always been done: To gain delayed credits for retirement benefit while collecting a spousal benefit. Doing it so your spouse could collect the spousal benefit was effectively ended by the recent change in law. If you...
by JW-Retired
Sun Aug 20, 2017 11:22 am
Forum: Investing - Theory, News & General
Topic: I own no international stocks. Can you guess why?
Replies: 167
Views: 12038

Re: I own no international stocks. Can you guess why?

Taylor Larimore wrote:
Sun Aug 20, 2017 10:43 am
Bogleheads:
I have gradually reduced my international allocation to 00% . Can you guess why?
My guess: You have been keeping your capital gains taxes lower by selling only international. International stocks have less gains the last 10-15 years.
JW
by JW-Retired
Sun Aug 20, 2017 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio asset allocation for a retiree
Replies: 8
Views: 1111

Re: Portfolio asset allocation for a retiree

I am a new retiree with a 40/60 portfolio across both taxable/tax advantaged accounts. It's currently designed for total return so it has both growth and income funds in it. I would like to get a sense of what percentage the asset classes should be at this new stage of my life, retirement, i.e., la...
by JW-Retired
Sun Aug 20, 2017 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Should we sell our Home to Mother-in-law?
Replies: 23
Views: 1327

Re: Should we sell our Home to Mother-in-law?

My mother in law (MIL)lives close by, and has no mortgage on her home. One idea floated by wife is this: we sell our home for same price we purchased it to my MIL: $410,000. I, however, would like to sell it at fair market value ~$500,000, and not sell it to MIL Wife's plan: 1) MIL rents her existi...
by JW-Retired
Sun Aug 20, 2017 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 36
Views: 2956

Re: Adjusting AA as retirement nears

I'm planning to retire mid-2019, a little less than 2 years from now. I will be 58 at that time. My current AA is 50/50. I'm feeling like I need to shift my AA more conservatively - having some market fears at this point. Could be as easy as just making adjustments to go to 60/40 or 70/30...just lo...
by JW-Retired
Sat Aug 19, 2017 8:56 am
Forum: Personal Finance (Not Investing)
Topic: How to Undo Backdoor Roth Completely
Replies: 10
Views: 1117

Re: How to Undo Backdoor Roth Completely

I did backdoor Roth for this year (2017) by first contributing to a new Traditional IRA and then converting to Roth. But I recently realized that I would have to rollover my previous 401(k) to a Traditional IRA soon, so at the end of this year I would have a large pre-tax amount in a Traditional IR...
by JW-Retired
Sat Aug 19, 2017 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Introduction and a Question: IRA vs 401k Tax benefits
Replies: 13
Views: 978

Re: Introduction and a Question: IRA vs 401k Tax benefits

For the official limit see https://www.irs.gov/retirement-plans/ira-deduction-limits For the record, the limit is based on MAGI (M for modified). That's AGI plus adding back any tIRA contributions themselves as well as a number of other things that reduce AGI. https://www.irs.gov/publications/p590a/...
by JW-Retired
Fri Aug 18, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401K vs Traditional 401K
Replies: 25
Views: 1303

Re: Roth 401K vs Traditional 401K

An exception might be if you are in a very low tax bracket now, such as 15%. If your income is about to go up a lot and stay there for decades, using Roth 401k in the 25% bracket might be a good idea. retiredjg, I'm thinking maybe that 25% percent is a typo? did you really mean 15%? If not I'm conf...
by JW-Retired
Fri Aug 18, 2017 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Should I roll over my old 401k?
Replies: 9
Views: 686

Re: Should I roll over my old 401k?

Thanks for the replies but I still don't understand. My old workplace 401k has some good funds in it for sure, but I cannot change anything in it, it's locked. So I have some cash position in my old 401k that I can't invest because the investments froze when I left previous company. To be clear, th...
by JW-Retired
Fri Aug 18, 2017 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401K vs Traditional 401K
Replies: 25
Views: 1303

Re: Roth 401K vs Traditional 401K

An exception might be if you are in a very low tax bracket now, such as 15%. If your income is about to go up a lot and stay there for decades, using Roth 401k in the 25% bracket might be a good idea. retiredjg, I'm thinking maybe that 25% percent is a typo? did you really mean 15%? If not I'm conf...
by JW-Retired
Fri Aug 18, 2017 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for Mom's portfolio
Replies: 9
Views: 518

Re: Asset allocation for Mom's portfolio

Things that make me nervous include a LOT of money held in the communications sector (AT&T, Verizon, Comcast). Unfortunately, they are long-held and selling would result in a large capital gains bill. If I could liquidate her entire account at Schwab and open a taxable account at Vanguard, I would ...
by JW-Retired
Thu Aug 17, 2017 2:45 pm
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 18
Views: 1626

Re: 401(k)/403(b) Conversion to Roth IRA

Thank you, thank you! (I did read that part but did not post it. :? And great thanks for that IRS form number. What if my whole universe of IRAs is just one Roth? That is it except for the 403(b) I would like to convert to a tIRA to then convert to a Roth. I said the whole universe of tIRAs. More c...
by JW-Retired
Thu Aug 17, 2017 10:19 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 18
Views: 1626

Re: 401(k)/403(b) Conversion to Roth IRA

From Bogleheads Wiki : "To make a backdoor contribution, first make a regular contribution to a Traditional IRA with your IRA custodian. You do not specify to the custodian whether the IRA is deductible or not; it is just treated as an IRA. As soon as the contribution posts, convert to a Roth IRA. ...
by JW-Retired
Wed Aug 16, 2017 8:15 am
Forum: Investing - Help with Personal Investments
Topic: California - clarification on taxes
Replies: 36
Views: 2399

Re: California - clarification on taxes

We could add that at higher incomes you will start getting into phaseouts of itemized deductions and personal exemptions. Taxes, interest, and charitable contribution deductions are effected. This starts at $311k AGI for married joint filers. I think this puts high bracket couples in CA at just abou...
by JW-Retired
Tue Aug 15, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: How long to keep IRA records?
Replies: 54
Views: 3144

Re: How long to keep IRA records?

Didn't mean to go on a tangent here, but my point was when you have deductible AND non-deductible in the same IRA account, in other words co-mingled contribution dollars, it can get difficult for you or your beneficiaries to determine the correct taxable amount. My personal situation is to liquidat...
by JW-Retired
Tue Aug 15, 2017 9:12 am
Forum: Investing - Theory, News & General
Topic: REITs a disappointment, yet still useful
Replies: 19
Views: 2539

Re: REITs a disappointment, yet still useful

If one has, say 10-15% of their portfolio (accounting for the 3% in Total Stock Market) in a REIT fund such as VNQ, will they not be rewarded with further diversification? Furthermore, REITs are a "real" asset and nice to own in certain economic conditions. This example portfolio is pretty heavenly...
by JW-Retired
Mon Aug 14, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Filing Restricted SS Application - Language Check
Replies: 19
Views: 967

Re: Filing Restricted SS Application - Language Check

I'm getting ready to file sometime in the next several months a restricted application for my spousal benefit. I wanted to check the language I plan on using in the 'Remarks' box of the online application. I've researched several threads on the subject and have arrived at what I believe should cove...
by JW-Retired
Mon Aug 14, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: How long to keep IRA records?
Replies: 54
Views: 3144

Re: How long to keep IRA records?

Here's one specific state example: in 1982-86, you were allowed a Fed deduction of $2K/yr. CA did not allow the deduction if you had a qualified retirement plan Thus for CA , you have 10K basis for those years......not taxable and the basis is applied to the first withdrawals, not pro-rated. Wow! T...
by JW-Retired
Mon Aug 14, 2017 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Wife 1m to vanguard
Replies: 10
Views: 2289

Re: Wife 1m to vanguard

Wife is 61 and will be moving 1m this week to from principle to vanguard. This is her retirement money. She will wait until 70 to start taking money plus will start taking SS. Her family live to 90+. She will be staring in the money market fund then move slow to S&P, total market and some bonds. Sh...
by JW-Retired
Sun Aug 13, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Filing Restricted SS Application - Language Check
Replies: 19
Views: 967

Re: Filing Restricted SS Application - Language Check

I'm getting ready to file sometime in the next several months a restricted application for my spousal benefit. I wanted to check the language I plan on using in the 'Remarks' box of the online application. I've researched several threads on the subject and have arrived at what I believe should cove...
by JW-Retired
Sun Aug 13, 2017 6:31 am
Forum: Personal Finance (Not Investing)
Topic: IRA withdrawal tax aConsider couple on Medicare and over 70.5 years of age. They must take RMDsnd Medicare implications
Replies: 13
Views: 1119

Re: IRA withdrawal tax aConsider couple on Medicare and over 70.5 years of age. They must take RMDsnd Medicare implicat

Consider couple on Medicare and over 70.5 years of age. They must take RMDs each year from their IRAs (and any 401ks). After they have taken their RMDs in a year (1) Can withdraw any remaining IRA funds they wish and deposit them into a Roth IRA? (2) If yes, then if they withdraw significant funds,...
by JW-Retired
Tue Aug 01, 2017 9:56 am
Forum: Investing - Help with Personal Investments
Topic: 401k Rollover. Need advice
Replies: 9
Views: 503

Re: 401k Rollover. Need advice

If you will ever be highly paid to the point that you can't deduct tIRA contributions or even contribute to a Roth IRA (MFJ AGI of $194k), there is a good reason to avoid having any tIRA accounts at all. (See our Wiki article for "Backdoor Roth".) If this is you, it's probably best to keep it in the...
by JW-Retired
Sat Jul 29, 2017 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Young Boglehead seeks Advice for Parents Approaching Retirement
Replies: 21
Views: 1668

Re: Young Boglehead seeks Advice for Parents Approaching Retirement

No tax deferred investments. 13 years until remainder of mortgage is paid off (15 year mortgage). They can save $35,000 a year until retirement. I would start pushing tax deferred investments. You have not told us about any income they might have in retirement except the CDs. If that's most of it, ...
by JW-Retired
Fri Jul 28, 2017 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Timing of 401K Rollover
Replies: 9
Views: 635

Re: Timing of 401K Rollover

How long should you wait after leaving your employer to roll over your 401k? Compared to an IRA, your assets are much more protected from lawsuit judgments in a 401k. I'm several years retired and leaving my 401k where it is indefinitely. (It is a good low cost plan so there is no down side.) JW Th...
by JW-Retired
Fri Jul 28, 2017 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: 10 years of Roth IRA contributions - to individual stocks
Replies: 10
Views: 1219

Re: 10 years of Roth IRA contributions - to individual stocks

What are the tax implications of selling these stocks and instead buying funds within the Roth IRA? Can this be done within the Roth IRA without any tax consequences? An IRA is the account not the particular investment. Yes, no tax consequences selling and buying something else if the money stays i...
by JW-Retired
Thu Jul 27, 2017 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: How is the growth portion of a non-qualified 457b taxed?
Replies: 4
Views: 279

Re: How is the growth portion of a non-qualified 457b taxed?

Yes, agree every dollar withdrawn is going to be taxed at your marginal rate just like taxable interest or wages. Dividends or capital gains within a tax deferred account such as a tIRA/401k/403b/457 are just an addition to the total dollars in the account holdings.
JW
by JW-Retired
Thu Jul 27, 2017 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Timing of 401K Rollover
Replies: 9
Views: 635

Re: Timing of 401K Rollover

SimonJester wrote: How long should you wait after leaving your employer to roll over your 401k?

Compared to an IRA, your assets are much more protected from lawsuit judgments in a 401k. I'm several years retired and leaving my 401k where it is indefinitely.
(It is a good low cost plan so there is no down side.)
JW
by JW-Retired
Tue Jul 25, 2017 8:30 am
Forum: Personal Finance (Not Investing)
Topic: How am I doing? (dual physician household)
Replies: 45
Views: 5693

Re: How am I doing? (dual physician household)

New annual Contributions 401K- 36 + Employee contrib- 20 = 56 Deferred comp- 170 Roth 10 Gross Income: 550 Annual expenses 80 beezquimby, It appears your AGI has to be way more than the amount that allows direct Roth contributions ($194k MAGI). Can you confirm that you are making Roth contributions...
by JW-Retired
Sun Jul 23, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA and backdoor Roth
Replies: 11
Views: 743

Re: SEP IRA and backdoor Roth

No, FA is someone who I bought some disability insurance from a while ago, is a fiduciary, and who we used to meet with a couple of times a year but are stepping away from. He brought up a SEP IRA and was aware I was doing backdoor roths. Tax person is someone I just used for the first time this ye...
by JW-Retired
Sun Jul 23, 2017 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: How do I get back to my asset allocation?
Replies: 14
Views: 1597

Re: How do I get back to my asset allocation?

I tried to market time and now regretting it. Help me get back in. At the end of last year, I re-balanced to an ultra-conservative position (35-65 stock-bond) in a simple Three-Fund portfolio. But now I am afraid it might be too late to rebalance back to my target. What should I do? I think probabl...
by JW-Retired
Sun Jul 23, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA and backdoor Roth
Replies: 11
Views: 743

Re: SEP IRA and backdoor Roth

To answer your questions about how I got into this spot: I have been doing backdoor Roths myself for a few years and using Turbotax to do my taxes. They have been fairly simple as I was previously single and only recently with a higher income. This year is the first time I used someone else to prep...
by JW-Retired
Sun Jul 23, 2017 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: Should I convert my tIRA to a Roth? (Pro rata rule)
Replies: 8
Views: 513

Re: Should I convert my tIRA to a Roth? (Pro rata rule)

If I convert I think I will owe taxes on the difference between 137k and 31.5k. So I would owe taxes on 105k correct? How do I calculate the tax I will owe on this conversion? To answer this specific question dry run filling out an IRS 8606 form, which is the tax form and work sheet for figuring th...
by JW-Retired
Sun Jul 23, 2017 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA and backdoor Roth
Replies: 11
Views: 743

Re: SEP IRA and backdoor Roth

This year I had additional income as an independent contractor and at the suggestion of my financial adviser I opened a SEP IRA and placed roughly 10k in there, which will be close to the 25% allowable amount. For the last few years I have been funding a backdoor Roth IRA, and in fact I already per...
by JW-Retired
Sat Jul 22, 2017 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Security trades with an IRA (ROTH)
Replies: 3
Views: 300

Re: Security trades with an IRA (ROTH)

Not trying to speak for Livesoft, but if you wash a taxable-account loss with an ira buy, you lose the tax deduction forever. That is kind of a big deal. If you had washed the sale in taxable you only defer the deduction. That would be "No big deal". Didn't think it through... thanks for ...
by JW-Retired
Sat Jul 22, 2017 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Restricted SS Spousal benifit
Replies: 10
Views: 1123

Re: Restricted SS Spousal benifit

So I called SS they set up a phone appointment for review of my situation, but I would like to have some definitive answer first. Question- Can I file a restricted application on my wife's record for spousal benefit without disrupting my delaying until age 70? (sorry for the rehash of this topic) Y...
by JW-Retired
Sat Jul 22, 2017 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Security trades with an IRA (ROTH)
Replies: 3
Views: 300

Re: Security trades with an IRA (ROTH)

Yep, no taxable events trading in a tIRA, Roth, 401k, or other employer tax deferred accounts. However, you could get frequent trading fees from some Vanguard or other mutual funds if you trade them to frequently. Also, if you trade the same equity in your IRA et al and in your taxable account withi...
by JW-Retired
Fri Jul 21, 2017 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring an IRA to VG Question
Replies: 8
Views: 453

Re: Transferring an IRA to VG Question

Is this an employer plan? If this is an IRA, I don't think you should be using a form from the current custodian. Usually it's best to start this kind of transfer with the new custodian (Vanguard) and use their form. They will "pull" the funds from old company and VG is the one that has th...
by JW-Retired
Fri Jul 21, 2017 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Conduit IRA Requirement
Replies: 22
Views: 1158

Re: Conduit IRA Requirement

Yes. The wording is part of the plan and I need to sign documents declaring that it is a conduit IRA. I think my only option is to consider partial conversions as previously mentioned. Bottom line is this falls on my shoulders due to ignorance with the ratio rule when I had other rollover IRAs. Tha...