Search found 7015 matches

by JW-Retired
Fri Feb 15, 2019 7:42 pm
Forum: Personal Investments
Topic: Employer 401K
Replies: 4
Views: 536

Re: Employer 401K

TKRN2002, I see you added your gross salary is $76K + another 2nd job of around $6k. Less the filing single std deduction of $12k that puts you at a $70k taxable income and a marginal federal tax rate of 22%. That 22% rate extends down to $38.7k taxable income for a single filer, so doing all Roth c...
by JW-Retired
Thu Feb 14, 2019 8:36 am
Forum: Personal Investments
Topic: Employer 401K
Replies: 4
Views: 536

Re: Employer 401K

It would help us if you could give us approximate income data in dollars instead of %. If you are mostly contributing to a Roth 401k that implies that your income and tax bracket is pretty low now, and you expect to be switching to a pre-tax 401k later when your bracket is higher. Is that the case? ...
by JW-Retired
Tue Feb 12, 2019 8:50 am
Forum: Personal Investments
Topic: TSP - how to allocate funding between ROTH TSP and Traditional TSP
Replies: 11
Views: 727

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

Question: I had been under the assumption that we should start switching most funding to ROTH IRAs (although we've only done 1/2 and 1/2 for the TSP for the last few years). After reading here, I'm not sure if we should move away from the ROTH TSP and just fully fund the traditional TSP. And yes, I...
by JW-Retired
Mon Feb 11, 2019 9:38 am
Forum: Personal Investments
Topic: Should I transfer taxable account from Fidelity to Vanguard?
Replies: 12
Views: 1240

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

You need to determine the capital gain in these to see if you can sell them without substantial tax consequences. Any of those that have negative (loss) or modest gain I would sell immediately and invest in a 3-fund portfolio No need to move to Vanguard for access to cheap index ETFs or MFs - Fidel...
by JW-Retired
Mon Feb 11, 2019 8:32 am
Forum: Investing - Theory, News & General
Topic: Big IRA accounts
Replies: 48
Views: 4663

Re: Big IRA accounts

when I retire the divisor is about 27.4 which turns out to be about 150k where did you get 250k from What is the total income picture? It sounds like you and spouse are still working, and already taking SS, and have a taxable investment account in addition to the $4M 401k's? Probably too late for m...
by JW-Retired
Sat Feb 09, 2019 11:16 am
Forum: Personal Consumer Issues
Topic: Credit ID hacked, got $4900 T-Mobile bill
Replies: 36
Views: 4461

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

Rupert wrote:
Sat Feb 09, 2019 9:21 am
Did you ever file police reports?
That's been advised several times but I don't see that OP has ever hinted that he/she did that. Doing the report may be the key to stopping these ongoing troubles?
JW
by JW-Retired
Sat Feb 02, 2019 10:15 am
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax benefit rule?
Replies: 11
Views: 571

Re: How to calculate tax benefit rule?

This is a routine thing so don't start guessing what to do. It just gets carried over to the following year. A few days ago I got a 1099 G like this again this year. Also usually have AMT. Sometime soon you should get a 2018 form 1099 G for that $4000 state tax refund. It's 2018 income and your 2018...
by JW-Retired
Thu Jan 31, 2019 11:07 am
Forum: Personal Investments
Topic: TLH & Capital Gains
Replies: 6
Views: 312

Re: TLH & Capital Gains

The Wizard wrote:
Wed Jan 30, 2019 5:19 pm
The usual rule is that you should choose TLH partners that you are happy keeping forever.
reddison,
Definitely...... and it looks to me like the partners you selected will be fine forever.
JW
by JW-Retired
Tue Jan 29, 2019 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion questions
Replies: 20
Views: 836

Re: Roth IRA conversion questions

I'm also just realizing, how does a 401k play into this? Should I add that amount to the RMD calculator? I actually have a lot in my 401k, which could put RMD (if RMD has to be taken like a traditional) back near my current AGI, so possibly same tax bracket as today, but still, not a higher one I d...
by JW-Retired
Mon Jan 28, 2019 9:43 am
Forum: Personal Consumer Issues
Topic: Portable Air Compressor Adapter
Replies: 12
Views: 852

Re: Portable Air Compressor Adapter

I'm going to jump in and point out there is now a tire air compressor powered by your drill's Lithium battery. It looks like a drill but it's a truly portable tire inflator with an air hose only about 18" long. If you already have the same brand drill you use those batteries so it's very cheap. I ca...
by JW-Retired
Wed Jan 23, 2019 11:42 am
Forum: Personal Investments
Topic: Marketwatch - If everyone invested like John Bogle, markets couldn’t work right
Replies: 54
Views: 3198

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

Advising people simply to hold the market is advising them to free-ride on the wisdom of others who do not follow such a strategy. If everyone followed Bogle’s advice, market prices would turn into nonsense and would provide no direction to economic activity. Obviously, everyone won't follow Bogle'...
by JW-Retired
Mon Jan 21, 2019 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: After-tax 401(k) to Roth IRA conversion - confused about tax treatment
Replies: 29
Views: 1619

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

The only thing is, as far as investing goes, the entire 401k money ( pre-tax, roth 401k, after tax) is treated as a common pool and invested as such. That is, I cannot specifically invest my after-tax contributions, separate from pre-tax ones. However, after-tax contribution (and earnings on it) ar...
by JW-Retired
Sun Jan 13, 2019 4:52 pm
Forum: Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 56
Views: 5709

Re: Does anyone have entire 401K in bonds?

Current income with company + 3 side hustles is $400K/year and living on $25-30K the rest will be invested/saved. This is why I thought 100/0 was taking on unnecessary risk for not too much added benefit since I’m adding so much so fast. I’d like to be FI by 35 - I might keep going for much longer ...
by JW-Retired
Sun Jan 13, 2019 10:32 am
Forum: Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 56
Views: 5709

Re: Does anyone have entire 401K in bonds?

I’m currently at a near 100% equites allocation and have been wanting to switch to a 70/30 asset allocation, which I would always keep forever. I’m 33 and plan to be FI in a few years and potentially RE as well, but not sure if I’d retire. I might stay on and earn extra to aid family. I’ve realized...
by JW-Retired
Sat Jan 12, 2019 11:10 am
Forum: Investing - Theory, News & General
Topic: SS/Pension/etc as bond allocation?
Replies: 25
Views: 1676

Re: SS/Pension/etc as bond allocation?

OP, you've been here long enough to know... pension is income/cash flow, it has nothing to do with bonds in your portfolio... it simply means that the portfolio won't need to supply as much in your retirement ... But I have been here long enough to realize that Jack Bogle himself recommends treatin...
by JW-Retired
Sat Jan 12, 2019 9:55 am
Forum: Personal Investments
Topic: Tax software for filing state returns
Replies: 12
Views: 526

Re: Tax software for filing state returns

If you are willing to print your state return and US mail it in, there is typically no charge. At least that's what I always do using H&R-block software. (HR-Block Deluxe)
JW
by JW-Retired
Fri Jan 11, 2019 9:50 am
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 7716

Re: BHers, what is your Roth IRA %?

Of the retirement funds, 88% are ROTH. We expect to have all the non-ROTH converted to ROTH within the first few years of retirement. Presumably, you'd want at least SOME taxable income every year, to at least take advantage of deductions. As I indicated in my post, 66% of our portfolio is taxable ...
by JW-Retired
Tue Jan 08, 2019 11:21 am
Forum: Investing - Theory, News & General
Topic: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]
Replies: 145
Views: 8689

Re: More Nanny State From Vanguard

Why do you care what others do in managing their investments if it doesn't impact you? I don't care if doesn't impact me, but I suspect it does in terms of Vanguard's costs. All the very frequent trading is surely way more costly for Vanguard then my handful of trades a year. We boring Bogleheads a...
by JW-Retired
Tue Jan 08, 2019 10:57 am
Forum: Personal Investments
Topic: RMD planning
Replies: 19
Views: 1716

Re: RMD planning

BarbBrooklyn wrote:
Mon Jan 07, 2019 6:24 pm
Due to a 58K taxable inheritance, we will be in 24% bracket this year.
Can you explain what sort of "taxable inheritance" this is. I've not heard of one before. Is it a tIRA that you are forced to take in one lump for some reason?
JW
by JW-Retired
Sun Jan 06, 2019 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question hindsight
Replies: 65
Views: 5009

Re: Social Security question hindsight

My tax difference is the 15% of SS not Federal taxed, plus no state tax at all on SS by California (versus 9% marginal on every other income I might have). Per my tax software last year, that added up to I get to keep 67% of my SS marginal income versus only 52% of my marginal pension income. Do yo...
by JW-Retired
Sun Jan 06, 2019 12:04 pm
Forum: Investing - Theory, News & General
Topic: How to compare active managed vs index
Replies: 24
Views: 758

Re: How to compare active managed vs index

So it sounds like you are all saying you you pick the one with the lowest ER and you don't look at any history. Yes, no history and we use index funds that are weighted to the entire investment market. There is no posse of salesman and highly paid gurus & researchers that are draining money out of ...
by JW-Retired
Sun Jan 06, 2019 11:05 am
Forum: Investing - Theory, News & General
Topic: How to compare active managed vs index
Replies: 24
Views: 758

Re: How to compare active managed vs index

Comparing anything but the cost drag is futile. Given there are thousands of active funds out there, you can typically find some of them that did better than the indexes over many previous years just by luck. Active fund peddlers like to offer you these "good funds" since they are an easier sell. Wh...
by JW-Retired
Sun Jan 06, 2019 9:18 am
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting Question
Replies: 3
Views: 249

Re: Tax Loss Harvesting Question

My thought is that if performed over the course of years, couldn’t this substantially diminish your basis? Sure it reduces your overall basis, but this has no effect unless you eventually sell the appreciated taxable assets. Bogleheads try do very little of that. I'm 5 years retired and still haven...
by JW-Retired
Sat Jan 05, 2019 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question hindsight
Replies: 65
Views: 5009

Re: Social Security question hindsight

In our own 70-something case the tax deferred account RMD's get taxed at a rate 50% higher then our SS income does. I did delay SS to 70 for survivor benefit reasons, but at the time hadn't really appreciated such a huge taxation difference windfall too. :D JW JW, I do not recall all the ways I loo...
by JW-Retired
Sat Jan 05, 2019 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question hindsight
Replies: 65
Views: 5009

Re: Social Security question hindsight

I took mine at FRA (age 66) and retired that year. I was undecided as to what to do and the SS person suggested that I take it, so I did. I could easily have covered the missing SS money in my living expenses with my retirement payout. At that time, some experts claimed the payout was actuarially e...
by JW-Retired
Mon Dec 31, 2018 11:54 am
Forum: Personal Investments
Topic: Another Edward Jones Transition to Vanguard
Replies: 12
Views: 826

Re: Another Edward Jones Transition to Vanguard

All funds and ETF's were losers in 2018 and I've already captured $21k for TLH a few weeks ago. I'm hesitant to sell and accept more loss... Why hesitant? Losses are money in the bank. Losses you don't use against gains this year get applied to reduce your ordinary income (up to $3k/year). What is ...
by JW-Retired
Mon Dec 31, 2018 10:33 am
Forum: Personal Investments
Topic: Catching up on backdoor Roth
Replies: 6
Views: 310

Re: Catching up on backdoor Roth

Have you filed IRS 8606 forms for all your post-tax IRA contribution years? That's the starting point of doing what you want and it sounds like maybe you didn't.
JW
by JW-Retired
Mon Dec 31, 2018 10:03 am
Forum: Personal Investments
Topic: How urgent is my Mom’s single-stock investment? (Sysco)
Replies: 35
Views: 1608

Re: How urgent is my Mom’s single-stock investment? (Cisco Systems)

A single stock isn't good. My suggestion would be to sell some small portion (10% ?) of it this year to help Mom see it's really OK to sell something. The tax surely won't be too terrible. Maybe selling a bit more next year would then seem palatable. If or when this stock craters 300% again like in ...
by JW-Retired
Fri Dec 28, 2018 10:26 am
Forum: Personal Finance (Not Investing)
Topic: When to claim Social Security: two reasons not to wait
Replies: 108
Views: 16366

Re: When to claim Social Security: two reasons not to wait

The main reason to file at 62 is that people over estimate the day of their death. For a male its about 80 if all goes really well. Longer if you are female. :( It's not that bad and they only need to be average. For a median US male at age 62 there is a 50% chance he will make it to 82. A median f...
by JW-Retired
Sun Dec 23, 2018 9:27 am
Forum: Personal Investments
Topic: Sell IBM? Am I timing the market?
Replies: 11
Views: 963

Re: Sell IBM? Am I timing the market?

Sorry though, my post was misleading. To clarify, I have a capital gain on IBM (I have had it since the early 2000s). Now from TLH, I have a loss to offset the gain. I think I should trust the market valuation and get rid of it, just wanted to make sure I wasn't missing anything. You usually don't ...
by JW-Retired
Sat Dec 22, 2018 9:18 am
Forum: Personal Finance (Not Investing)
Topic: TLH for VTIAX - 21K Loss [Tax Loss Harvesting for Vanguard Total Int'l]
Replies: 15
Views: 1104

Re: TLH for VTIAX - 21K Loss

I always just sell the losing lots and avoid realizing gains like the plague. That maximizes the deduction amount that can go toward reducing your ordinary taxable income tax rate.
JW
by JW-Retired
Sat Dec 22, 2018 8:52 am
Forum: Personal Investments
Topic: Have you moved to ETF's? Why or why not?
Replies: 84
Views: 10217

Re: Have you moved to ETF's? Why or why not?

d) I like the freedom of being able to place an order any time I like, and not have to do it when the market is open, not having to stress over what time to do it, and not having to hang around and monitor the transaction to find out whether it executed. Tried 'em but don't like 'em. For all the re...
by JW-Retired
Thu Dec 20, 2018 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Open social secuity
Replies: 40
Views: 2706

Re: Open social secuity

What do others think? I think if your "excellent tool" leaves out the typically much lower fed + state taxation of SS compared to investment income, you are getting faulty answers. Plus the much higher survivor benefit if the higher earner delays to 70 is a huge consideration. Survivor benefits are...
by JW-Retired
Thu Dec 20, 2018 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Open social secuity
Replies: 40
Views: 2706

Re: Open social secuity

What do others think? I think if your "excellent tool" leaves out the typically much lower fed + state taxation of SS compared to investment income, you are getting faulty answers. Plus the much higher survivor benefit if the higher earner delays to 70 is a huge consideration. IMO, the rule of thum...
by JW-Retired
Mon Dec 17, 2018 10:09 am
Forum: Personal Investments
Topic: Options for Tax-Inefficient Holding?
Replies: 5
Views: 281

Re: Options for Tax-Inefficient Holding?

Do you have losses elsewhere that you can harvest and offset some of the gains? No paper losses. A reasonable strategy may be to wait until I have some losses and to offset then. Also, I will not add anything to this fund. Usually, realized losses are better spent on offsetting them against your or...
by JW-Retired
Fri Dec 14, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Rolling 401k to IRA after Retirement
Replies: 6
Views: 587

Re: Rolling 401k to IRA after Retirement

My mother recently retired (69 years old) and wanted to withdrawal a set monthly amount in her Fidelity 401k. Her balance is $100k and wanted to withdraw about $400k a month (this amount will be less due to paying tax). However, when I tried to help her with this request, I learned that since she's...
by JW-Retired
Thu Dec 13, 2018 12:12 pm
Forum: Investing - Theory, News & General
Topic: Our mentor [Jack Bogle] advises to "buy bonds" for protection in current market
Replies: 61
Views: 6158

Re: Our mentor advises to "buy bonds" for protection in current market

Hmmm... sell stocks and buy bonds because a drop in stocks is coming ... sounds a heckuva lot like market timing to me. Not that that is always a bad idea, but it is heresy to most "Bogleheads." IMO, not heresy. I read it as Bogle thinks maybe those who have shunned bonds altogether might reconside...
by JW-Retired
Wed Dec 12, 2018 2:33 pm
Forum: Forum Issues and Administration
Topic: How do I delete my account?
Replies: 13
Views: 5857

Re: How do I delete my account?

Been on here for a few months, it’s not for me. How do I delete my account? If there are some posts you regret you can always delete all their text one post at a time using edit (the pencil in the upper right). However, if there are other posts following yours, that now empty post will stay in the ...
by JW-Retired
Wed Dec 12, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 249
Views: 20603

Re: What Happened to you during the Financial crisis of 2007–2008

The great recession was not very worrisome for us personally. I felt there was no danger of losing my job. Moreover, my plan in or out of a financial crisis is/was always not to sell bonds to re-balance, and we didn't. Not worrying about that is very soothing. :D I did keep up my spreadsheet every m...
by JW-Retired
Tue Dec 11, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: Funding tIRA from joint taxable account?
Replies: 7
Views: 512

Re: Funding tIRA from joint taxable account?

Hello — hopefully a simple question. I did the backdoor Roth IRA this year for both my wife and I (at Vanguard). To change the subject to the usual pitfall of a backdoor Roth. Have you done IRS 8606 form dry runs for tax years 2018 and 2019? Practicing that before you actually do something would do...
by JW-Retired
Mon Dec 10, 2018 12:55 pm
Forum: Investing - Theory, News & General
Topic: Has anyone adjusted their stock allocation on the dip?
Replies: 71
Views: 5625

Re: Has anyone adjusted their stock allocation on the dip?

We don't adjust on a dip, only adjust our stock AA down if it gets too high. Never adjust the stock allocation upward should it go below our 60/40 AA target. We rely on the market to eventually adjust back to 60/40 for us. Letting the market do it has worked fairly quickly before, but possibly it wo...
by JW-Retired
Sun Dec 09, 2018 11:30 am
Forum: Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1836

Re: Roth conversion

I am single 69 standard deduction will be 70 Jan 2019. I received some income in 2018 which I will not receive in 2019. I will only have SS of $36,000 and RMD’s that will be less than the $85,000 for lower medicare premiuims. I do not mind paying more for Medicare in 2020 approx, $2028 to be able t...
by JW-Retired
Fri Dec 07, 2018 11:49 am
Forum: Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1836

Re: Roth conversion

2018 adjusted gross income - $44,875 SS $15,756 (spousal rate) adjusted at 85% = $13,393 total adjusted income $58,268 with a standard deduction = 22% Fed tax $7153 state $1455 Is there a typo above? I cannot make any sense of your tax calculation and can't see how you could have taxes that high. C...
by JW-Retired
Thu Dec 06, 2018 5:15 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 10240
Views: 1806388

Re: U.S. stocks in freefall

I predict this is a 4 digit point loss today (DOW). I'll "predict" it will be down too. If it is, I promise to share my forecasting algorithm here. :twisted: JW Prediction was on the money! The algorithm is heads=up and tails=down. Thankfully, tomorrow is predicted to be up. JW Oops, it was down a ...
by JW-Retired
Thu Dec 06, 2018 2:28 pm
Forum: Personal Investments
Topic: 20M Inheritance - What is best option for small/no risk on principal?
Replies: 93
Views: 12136

Re: 20M Inheritance - What is best option for small/no risk on principle?

........................ is pretty great for no risk on the actual principle. Any other options worth looking into? fwdmotion, Can you explain your reason for not wanting to risk "actual principle"? A conservative mixture of stocks & bonds is pretty low risk. Would something dire happen if the valu...
by JW-Retired
Thu Dec 06, 2018 10:56 am
Forum: Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1836

Re: Roth conversion

I think we need to know your taxable income this year before you add the $75,000 Roth conversion. Not knowing that, I would probably just convert up to the jump in medicare or the top of the 22% bracket, whichever comes first. It's probably not going to make very much long term difference. Once you...
by JW-Retired
Thu Dec 06, 2018 9:50 am
Forum: Personal Investments
Topic: In a Bear Market, What Are Some Best Practices
Replies: 53
Views: 7169

Re: In a Bear Market, What Are Some Best Practices

Four things: 1) don't sell; 2) keep buying; 3) turn off all financial news; 4) don't check your balances (except when time to rebalance to meet your AA). My twist on this that's worked great over many-many years: Four Two things: 1) don't sell; 2) keep buying equities(with new money only); 3) turn ...
by JW-Retired
Thu Dec 06, 2018 9:24 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 10240
Views: 1806388

Re: U.S. stocks in freefall

corn18 wrote:
Thu Dec 06, 2018 9:09 am
I predict this is a 4 digit point loss today (DOW).
I'll "predict" it will be down too. If it is, I promise to share my forecasting algorithm here. :twisted:
JW
by JW-Retired
Wed Dec 05, 2018 10:12 pm
Forum: Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1836

Re: Roth conversion

I think we need to know your taxable income this year before you add the $75,000 Roth conversion. Not knowing that, I would probably just convert up to the jump in medicare or the top of the 22% bracket, whichever comes first. It's probably not going to make very much long term difference. Once you ...
by JW-Retired
Tue Dec 04, 2018 2:35 pm
Forum: Personal Investments
Topic: What to do with an old tIRA
Replies: 2
Views: 304

Re: What to do with an old tIRA

I have an old tIRA, approximately $32,000, through NWM that I am transferring to Vanguard. Do I need to roll it into my work 401k before back door roth? Benefits of that vs just roth conversion? Thanks! Yes, you need to hide the tIRA in your 401k, and leave it there. Otherwise you will owe large ta...