Search found 6047 matches

by JW-Retired
Thu Mar 23, 2017 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Requesting assistance with 401K, Roth IRA and Taxable Accounts
Replies: 9
Views: 604

Re: Requesting assistance with 401K, Roth IRA and Taxable Accounts

njfastlife wrote:thanks. so just to make sure i am reading this correctly a "good" AA would be:

80% VBMFX
10% VGTSX
10% VTSMX


No, you have it backwards. VBMFX is a bond fund so this AA is stocks/bonds = 20/80.
JW
by JW-Retired
Wed Mar 22, 2017 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Alternative SSA Claiming Strategy--question for the group
Replies: 10
Views: 628

Re: Alternative SSA Claiming Strategy--question for the group

Since your SSA benefits are returned to your account, and are added to increase your benefit after your FRA, you don’t lose in this scenario. If done correctly, you would get the best of both worlds. ............................................. What are the holes in the above strategy? Has anyone ...
by JW-Retired
Sun Mar 19, 2017 10:03 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 941

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

If capital gains is zero, then it doesn't make sense to move IRA into 401k just to do a Backdoor Roth. If capital gains is taxed at 15%, then there's that on the ($649k - $400k) X 0.15..which equals to $37,500 in taxes making the backdoor Roth the clear winner. So, it looks like it's the capital ga...
by JW-Retired
Thu Mar 16, 2017 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Helping a friend with retirement planning
Replies: 4
Views: 392

Re: Helping a friend with retirement planning

I would urge him to max the 401k before the Roth. Right now the gov. will be funding 25% of the 401k savings via the tax deduction he gets. (Or maybe a bit more if his bonus pushes him into the 28% bracket). When he is retired and drawing money from the 401k/tIRA looks like he will be safely in the ...
by JW-Retired
Thu Mar 16, 2017 8:13 am
Forum: Investing - Help with Personal Investments
Topic: How do you cope with regret over selling too soon?
Replies: 57
Views: 3094

Re: How do you cope with regret over selling too soon?

kathyauburn wrote:I guess I'm here for advice and commiseration. I sure could use those millions now.

Has this helped you accept that like most everyone else here, you can't pick stocks? If so you shouldn't regret anything. :beer
JW
by JW-Retired
Thu Mar 16, 2017 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Helping a friend with retirement planning
Replies: 4
Views: 392

Re: Helping a friend with retirement planning

Savings: $180,000 in tIRA, Roth, 401K (about 200 Roth and 3000 401K, the rest in tIRA)

$200 and $3000 is the total in the Roth & 401k? Is this a typo?
by JW-Retired
Wed Mar 15, 2017 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Convincing Someone To Dump A Bad Financial Advisor
Replies: 39
Views: 3127

Re: Convincing Someone To Dump A Bad Financial Advisor

Just trying to get my head around these fees. If I'm a financial adviser with only THREE retired clients (assuming similar sized portfolios), and I am taking 1.5% from each of these portfolios, my aggregate fee is MORE than the typical 4% SWR of the clients themselves. This seems absurdly well paid...
by JW-Retired
Wed Mar 15, 2017 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth: Those few cents that accumulate in your MM settlement funds
Replies: 9
Views: 784

Re: Backdoor Roth: Those few cents that accumulate in your MM settlement funds

Stop leaving anything in the tIRA if it annoys you. Click on the exchange all button. There is no dollar limit on conversions of tIRA assets to Roth assets.

Vanguard will leave the totally empty tIRA there so you can use it next year.
JW
by JW-Retired
Tue Mar 14, 2017 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Finding The "Sweet Spot" on a Roth Conversion
Replies: 26
Views: 2508

Re: Finding The "Sweet Spot" on a Roth Conversion

RMD is $73,000. Taxable Interest = 2,336 Ord. Div. = 42,893 Qual Div = 35,765 Cap Gain = -3,000 Taxable SS 22,708 AGI = 64,937 Taxable Inc = 41,737 What is total gross SS income? Taxable SS is a wildly moving target that depends on your other income, which complicates things immensely. Also, is the...
by JW-Retired
Tue Mar 14, 2017 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Finding The "Sweet Spot" on a Roth Conversion
Replies: 26
Views: 2508

Re: Finding The "Sweet Spot" on a Roth Conversion

RMD is $73,000. Taxable Interest = 2,336 Ord. Div. = 42,893 Qual Div = 35,765 Cap Gain = -3,000 Taxable SS 22,708 AGI = 64,937 Taxable Inc = 41,737 What is total gross SS income? Taxable SS is a wildly moving target that depends on your other income, which complicates things immensely. Also, is the...
by JW-Retired
Mon Mar 13, 2017 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Finding The "Sweet Spot" on a Roth Conversion
Replies: 26
Views: 2508

Re: Finding The "Sweet Spot" on a Roth Conversion

Status = MFJ Taxable Income w/o Conversion: $41,737 Currently retired and drawing Soc. Sec. 70% taxable RMD's start 4/2019 Est. RMD = $73,000 This is not enough information. If you are getting SS plus other income then there are way more marginal tax rates than the ones without SS. It's highly depe...
by JW-Retired
Sun Mar 12, 2017 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Adjusting 2016 Tax Return For Retirement Contribution?
Replies: 4
Views: 261

Re: Adjusting 2016 Tax Return For Retirement Contribution?

If you have a gross income of only $38k you can both contribute to a traditional or Roth IRA regardless of having an employer plan or not. Limitations only come in at much higher incomes. If you want the tIRA tax deduction you would need to amend your tax return. JW https://www.irs.gov/retirement-pl...
by JW-Retired
Sun Mar 12, 2017 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion from an IRA Account with only After Tax Money
Replies: 28
Views: 1409

Re: Roth Conversion from an IRA Account with only After Tax Money

$980,000 in before tax acct $20,000 in after tax acct $1,000,000 total value in IRA $4,000 (my best guess) in after tax money contributed, .4% of total Ira If I wanted to do a $100,000 Roth conversion $99,600 would be taxable and $400 would be after tax money It wouldn't matter which Ira I pulled t...
by JW-Retired
Sat Mar 11, 2017 8:13 am
Forum: Personal Finance (Not Investing)
Topic: What do I need to track re: 401k & IRA contributions?
Replies: 6
Views: 588

Re: What do I need to track re: 401k & IRA contributions?

If your TIRAs have only pre-tax contributions, earnings, and matches (for the rollovers), there really isn't much you need to keep up with since any distribution is fully taxable and any penalty for early withdrawal is solely based on your age. That make sense. The custodian keeps track of any post...
by JW-Retired
Fri Mar 10, 2017 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Edward Jones Guided Solutions Fees
Replies: 25
Views: 2267

Re: Edward Jones Guided Solutions Fees

switch my account set up to guided solutions and would be charged an annual fee of 1.35% instead of being charged per trade. I have little knowledge of this and am concerned that he was just trying to talk me into something that better benefits him. something that better benefits him? Not quite, yo...
by JW-Retired
Thu Mar 09, 2017 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Mom is retiring and unsure about what to do with her low return accounts.
Replies: 8
Views: 704

Re: Mom is retiring and unsure about what to do with her low return accounts.

My mom is 62. She's claiming my dad's SS until she's 68. At this age she will be making more on her own SS. She would like a total of $4000 income a month. Her monthly expenses are around $1600. Is your Dad deceased and she is claiming a survivor benefit? At an age less than 66 she can't claim spou...
by JW-Retired
Wed Mar 08, 2017 11:13 am
Forum: Investing - Help with Personal Investments
Topic: 401K
Replies: 5
Views: 344

Re: 401K

maria00200, You definitely must contribute enough to get the maximum match amount. In addition to that, can you list the fund names and expense ratios of say the 3 or 4 funds in his 401k with the lowest ERs? We constantly hear from people who say there is nothing but high cost junk in their 401k, bu...
by JW-Retired
Mon Mar 06, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: To Convert or Not... what do you think?
Replies: 19
Views: 1806

Re: To Convert or Not... what do you think?

Can you clarify the "50k per year" above? Do you mean yours + wife's is 50k/yr? The largest deferred to 70 SS possible for someone who paid maximum SS tax for 35 years is about $42k/yr. JW, I took the 50K SS payment at age 70 from my I-orp calculator printout. I had mistakenly left the in...
by JW-Retired
Mon Mar 06, 2017 10:45 am
Forum: Personal Finance (Not Investing)
Topic: To Convert or Not... what do you think?
Replies: 19
Views: 1806

Re: To Convert or Not... what do you think?

In 3 years, we will have pensions totaling 57k and DW SS of approx. 18k. I am holding off on SS till 70 and will receive approx. 50k per year. We have approx. 900k in deferred and 400k in Roth. Calculators tell us that the decision to do Roth conversions is close. Looks like no matter what we do, c...
by JW-Retired
Sun Mar 05, 2017 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: gifting money to adult children
Replies: 6
Views: 1001

Re: gifting money to adult children

Sticking to less than $14k simplifies your gift tax, but any amount of money gifted to someone is not taxable income. It never shows up on their tax return. If someone gifts them stock or real property also no tax, but the gifter's cost basis comes along with it. Only if and when they might sell tho...
by JW-Retired
Sun Mar 05, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Is there a combined RMD and SS tax calculator?
Replies: 13
Views: 915

Re: Is there a combined RMD and SS tax calculator?

susa, You might also try the simple HR Block tax calculator. I put in $32.5k SS, $34k RMD, & $4k interest and got your federal tax owed is $3499. It only takes a minute or two. You can easily change numbers to see the effect of different effective tax rates on more SS versus on more RMD. That ou...
by JW-Retired
Sun Mar 05, 2017 10:05 am
Forum: Investing - Theory, News & General
Topic: New Investor – Novice Jitters
Replies: 32
Views: 2477

Re: New Investor – Novice Jitters

My wife and I are in our mid-30s and we invested in the stock market for the first time last week with an allocation of 95% stocks/5% bonds. I did not invest during the recent 8 year bull market even though I had wanted to because I did not have enough money beyond my emergency fund to allow for it...
by JW-Retired
Sat Mar 04, 2017 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Restricted Application
Replies: 24
Views: 1755

Re: Social Security Restricted Application

If she was born in or before 1954 she is grandmothered under the old law. She can still file a restricted application for spousal at her FRA and delay taking her own benefits until age 70. JW ps: The file and suspend to allow spouse to claim spousal benefits while you continue to get delay credits, ...
by JW-Retired
Sat Mar 04, 2017 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Use TSP distribution to fund ROTH IRA in retirement
Replies: 6
Views: 427

Re: Use TSP distribution to fund ROTH IRA in retirement

See table 1-1 on page 6 in IRS pub 590A for what does and does not qualify as "compensation" allowing you to fund a Roth or Traditional IRA.
https://www.irs.gov/pub/irs-pdf/p590a.pdf
JW
by JW-Retired
Sat Mar 04, 2017 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Restricted Application
Replies: 24
Views: 1755

Re: Social Security Restricted Application

My online application did give me an immediate hard copy record of my application. As I posted, my online application was later backed up by a phone confirmation confirming the restricted nature of my application, and finally by a confirmation letter. All of this occurred over a month before the st...
by JW-Retired
Fri Mar 03, 2017 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Restricted Application
Replies: 24
Views: 1755

Re: Social Security Restricted Application

As I posted above, my online restricted application worked like a charm. One advantage of the online application is that you can save a copy of what you submit, so that if you make the appropriate application you have a record. In the posting above, I included the remark I made based on my rather q...
by JW-Retired
Fri Mar 03, 2017 9:18 am
Forum: Investing - Help with Personal Investments
Topic: Tax Question on underpayment of tax
Replies: 10
Views: 933

Re: Tax Question on underpayment of tax

In this case the merger created a stock sale of my CCE stock, which I have held since the early 1990's and resulted in a large capital gain. I still own the new stock, never initiated any sale, but essentially have the new CCE at a new cost basis point and owe substantial cap gains. I am certain th...
by JW-Retired
Fri Mar 03, 2017 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth from Traditional IRA with a TSP on the side
Replies: 4
Views: 281

Re: Backdoor Roth from Traditional IRA with a TSP on the side

Will the rollover create a taxable event on the proportionate gain in her TSP as it would for gain in a Traditional IRA? I'm not sure what this statement means exactly, but I doubt you would be asking this question if you had practiced filling out the IRS 8606 form that you will need to submit for ...
by JW-Retired
Thu Mar 02, 2017 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: Moving away from Edward Jones to Vanguard
Replies: 48
Views: 3706

Re: Moving away from Edward Jones to Vanguard

Just call your EJ person and ask to liquidate the mutual funds and purchase the Vanguard equivalents because you like their expense ratios. You don't have to give them a reason. As soon as they get it done, you can thank him politely for his service. Often not good advice here unless all money is i...
by JW-Retired
Mon Feb 27, 2017 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Why not to do ROTH Conversion
Replies: 29
Views: 2882

Re: Why not to do ROTH Conversion

michaeljc70 wrote:I'm 46 years old. I might retire at 50. I might not. If I work an extra 5 or 10 years, that will drastically change my retirement income.

Apologies, I mixed you up with the OP. :oops:
JW
by JW-Retired
Mon Feb 27, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Why not to do ROTH Conversion
Replies: 29
Views: 2882

Re: Why not to do ROTH Conversion

The big issue for me is I have no clue what tax bracket I will be in when I retire. I t's a pretty tall order to give help if you really have "no clue" about what your retirement income mix is going to be. :P Sorry, I mixed michaeljc70 up with the OP. :oops: I'll leave most of it in c...
by JW-Retired
Mon Feb 27, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Why not to do ROTH Conversion
Replies: 29
Views: 2882

Re: Why not to do ROTH Conversion

In my case I am almost ready to retire and the economics just don't make sense to do a conversion. I can save some on taxes but end up with a smaller portfolio and a riskier retirement. The tax hit (even at a fairly low effective tax rate) isn't overcome this late in retirement. Not sure what you m...
by JW-Retired
Sat Feb 25, 2017 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Social Security reps keep disputing advice given in this forum
Replies: 26
Views: 4731

Re: Social Security reps keep disputing advice given in this forum

Even under the old rules I believe only one spouse can file for spousal benefit only for a period and his or her own benefit for another period. The other spouse can only file for his or her own benefit. Nope, under the old rules I did exactly that. We both made a switch. Wife filed for her smaller...
by JW-Retired
Fri Feb 24, 2017 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security reps keep disputing advice given in this forum
Replies: 26
Views: 4731

Re: Social Security reps keep disputing advice given in this forum

Jackson12, I think these reps are wrong too. The new law extending deemed filing past your FRA applies to people age 62 on or after 1/2/2016. Your husband is older than that so he is grandfathered under the old law. I would call another SSA rep, maybe the 3rd time will be a winner. Who will be affec...
by JW-Retired
Thu Feb 23, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Early Soc Sec or spend down investments/assets?
Replies: 28
Views: 2607

Re: Early Soc Sec or spend down investments/assets?

All I want to add is you have to understand that SS income is highly tax advantaged over other income like tax deferred account withdrawals.

viewtopic.php?f=2&t=177441#p2686058

Usually it's a no-brainer to delay like livesoft said.
JW
by JW-Retired
Wed Feb 22, 2017 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Moving away from Edward Jones to Vanguard
Replies: 48
Views: 3706

Re: Moving away from Edward Jones to Vanguard

These mutual funds, in addition to my individual stocks, are in an IRA that I created by rolling over a 401K from a previous employer 11 years ago. It's value is around $284K currently and is in a "Guided Solutions' account that I was talked into moving into back in September. I am paying 1.3%...
by JW-Retired
Tue Feb 21, 2017 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: [What] to Do When Income Too High for Roth IRA
Replies: 15
Views: 1581

Re: [What] to Do When Income Too High for Roth IRA

Thanks JW. Very helpful. From the Bogelheads wiki on backdoor roth, they write, "If you have any other (non-Roth) IRAs, the taxable portion of any conversion you make is prorated over all your IRAs; you cannot convert just the non-deductible amount." Yes, that's why you need to get rid of...
by JW-Retired
Tue Feb 21, 2017 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: What is a smart tax strategy?
Replies: 13
Views: 1405

Re: What is a smart tax strategy?

For annual expenses, I feel between $40k - $60k a year can keep me happy, content and worry free. ]I am not yet taking ss. Estimated ss now would be $25k. If I hold off until 70yo, $39k. If you can hold off SS until 70 you would be great shape. A big deal about SS income is that it is highly tax fa...
by JW-Retired
Tue Feb 21, 2017 10:48 am
Forum: Investing - Help with Personal Investments
Topic: [What] to Do When Income Too High for Roth IRA
Replies: 15
Views: 1581

Re: [What] to Do When Income Too High for Roth IRA

We are planning on opening a traditional IRA for her and maxing out at $5500 for 2016 and $5500 again for 2017. Her job does not offer a 401k or other retirement account. The same $196k MAGI limit that applies to Roth contributions, also applies to deductible tIRA contributions for someone with a s...
by JW-Retired
Tue Feb 21, 2017 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Moving away from Edward Jones to Vanguard
Replies: 48
Views: 3706

Re: Moving away from Edward Jones to Vanguard

jsm1708, Can't you give Vanguard a list of the EJ funds and have them tell you which can be moved in kind? I might guess not very many just because EJ likes to sell load funds and doubtful that Vanguard does. EJ also likes making you a portfolio with a ridiculous number of funds. How many funds is i...
by JW-Retired
Tue Feb 21, 2017 9:09 am
Forum: Investing - Help with Personal Investments
Topic: TSP Advice
Replies: 14
Views: 563

Re: TSP Advice

Many of us don't know what the G/F/C/S/I funds are invested in. Going just by the 2030 fund date if it's like a Vanguard TR 2030 fund it might be pretty stock heavy at 75% equites. Is that too risky for you?
JW
by JW-Retired
Mon Feb 20, 2017 8:38 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 2541
Views: 650707

Re: What Movie Have You Recently Watched?

La La Land. I knew nothing about it except the title, which turned me off. But DW wanted to see it.... so we did. We both loved it!
JW
by JW-Retired
Mon Feb 20, 2017 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: What is a smart tax strategy?
Replies: 13
Views: 1405

Re: What is a smart tax strategy?

My stocks all have gains. Some I have held for twenty plus years. No losses to write off there but plenty of taxes to pay if/when I sell. My bonds are all already in the traditional IRA. Should I be doing what I can now to get money out of my traditional IRA and move to my Roth to lessen the RMD re...
by JW-Retired
Mon Feb 20, 2017 10:59 am
Forum: Investing - Help with Personal Investments
Topic: What is a smart tax strategy?
Replies: 13
Views: 1405

Re: What is a smart tax strategy?

How should I play with these accounts and numbers over the next 4-5 years? I have been advised that at 70 years old, if my tIRA gets to $800k, the RMD would be $29k. I think I need to be aware I will be in the 25% tax for a while. I think I need to try and sell stock, or reclassify my tIRA to just ...
by JW-Retired
Sun Feb 19, 2017 10:53 am
Forum: Investing - Help with Personal Investments
Topic: How do you invest the proceeds [from your RMD?]
Replies: 22
Views: 1875

Re: How do you invest the proceeds [from your RMD?]

We don't have a firm RMD re-investment plan. Usually some goes into taxable account muni-bond & stock index funds, some goes to grandchildren 529s, and some to the bank account as might be needed. If rebalancing becomes nessarary I handle that as an entirely separate once in a blue moon task. Th...
by JW-Retired
Sat Feb 18, 2017 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable? 20% Tax Bracket
Replies: 5
Views: 513

Re: Bonds in Taxable? 20% Tax Bracket

There isn't any 20% bracket. To find your tax bracket compare your taxable income on line 43 of your 1040 with this table. https://taxfoundation.org/2017-tax-brackets/ Usually we like putting your bonds in the tax deferred accounts and all stocks in the taxable accounts & Roth. JW ps: did you ch...
by JW-Retired
Sat Feb 18, 2017 11:05 am
Forum: Investing - Theory, News & General
Topic: When to convert IRA to Roth IRA and how much?
Replies: 4
Views: 555

Re: When to convert IRA to Roth IRA and how much?

....deleted...
Does your wife have a traditional IRA as well? She might be a good candidate for the so called "Backdoor Roth" contribution if she has no existing tax deferred IRA money (like in your rollover IRA). https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
JW
by JW-Retired
Sat Feb 18, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Rolling Over IRA to Crappy 401k in order to backdoor roth
Replies: 22
Views: 1401

Re: Rolling Over IRA to Crappy 401k in order to backdoor roth

Tax Filing Status: Married Filing Jointly Tax Rate (Bracket): 28% Federal, 4.6% State State of Residence: Ohio Age: 30-32 Investment Accounts: His/Hers Employer 401k (Max both out) His HSA (Max out) His/Hers Roth IRA's (See below) Hers Rollover IRA ~$30k (Rolled over from previous 403b and TSP) Joi...
by JW-Retired
Fri Feb 17, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Service problems in the news
Replies: 24
Views: 3200

Re: Vanguard Service problems in the news

Has anyone noticed any best time of the year for getting Vanguard service?

We have a slight name change to make to our taxable account and fear to burden the reps if the tax season is a bad time.
JW
by JW-Retired
Fri Feb 17, 2017 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: What are 401k after-tax contributions?
Replies: 12
Views: 469

Re: What are 401k after-tax contributions?

So with after-tax, if I just left it there and did not do the Roth conversion, I would effectively pay taxes on the basis when I deposit it and AGAIN on the basis and interest when I go to withdraw in retirement (not that I would do this...)? Why would anyone choose to do that? No, the earnings get...

Go to advanced search