Search found 6700 matches

by JW-Retired
Tue Apr 17, 2018 8:13 am
Forum: Personal Finance (Not Investing)
Topic: Wanting to leave Fidelity
Replies: 90
Views: 8638

Re: Wanting to leave Fidelity

I moved almost all of our investments from Fidelity to Vanguard. The main reason was unsolicited calls from my Fidelity "Account Executive" urging me to take advantage of some flaky investment opportunity. Every call sounded like his hair was on fire and that the world was ending today. This sounds...
by JW-Retired
Mon Apr 16, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax When Very Little Income
Replies: 7
Views: 948

Re: Capital Gains Tax When Very Little Income

Since I won't be making any income beyond my investment income this year will my marginal tax rate on these capital gains be $0 because I will be in one of the lower income brackets? Or am I not understanding this correctly. How much cap gains get Federally taxed depends on how much all your income...
by JW-Retired
Sat Apr 14, 2018 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Tax Consequences of Rolling a Traditional 401k to Roth IRA
Replies: 7
Views: 615

Re: Tax Consequences of Rolling a Traditional 401k to Roth IRA

Single (live in CA, which has state income tax) $10k business income @ 10% = $1k $10k non-qualified dividends @ 12% = $1.2k $20k qualified dividends @ 0% = $0k $10k qualified dividends @ 15% = $1.5k TOTAL = $3.7k Federal I also have a Traditional 401k with my previous employer and am thinking about...
by JW-Retired
Sat Apr 14, 2018 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Trying to understand my 401K
Replies: 11
Views: 1361

Re: Trying to understand my 401K

Does this mean I can start a Roth now (neither I nor my husband currently have one) by just instructing my employer to do it for me? There are no warnings on the deferral form about income limits. I had the impression DH and I had too much income to have Roths. Our AGI for 2017 was about $212,000 (...
by JW-Retired
Fri Apr 13, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Question on Roth conversion
Replies: 6
Views: 506

Re: Question on Roth conversion

I was under the impression that most people that do a Backdoor Roth want to convert as quickly as possible to avoid a taxable event. Everything I've read said they opened the non-deductible TIRA on day 1 and on day 2 they converted to a Roth. I recall reading that doing it this way, it's likely the...
by JW-Retired
Thu Apr 12, 2018 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6793

Re: Why traditional IRA better than Roth IRA

Traditional IRA is way better than Roth IRA because you do not pay tax in the beginning. Then when you reach 59 1/2 years old you make sure your withdrawals are at or less than $72K/year That way you don't pay tax ever. It turns out IRS does not tax dividends and capital gains up to 72K/year if you...
by JW-Retired
Thu Apr 12, 2018 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: How do I make sure IRS receives my manual tax return ?
Replies: 84
Views: 5099

Re: How do I make sure IRS receives my manual tax return ?

In some forums it says IRS does not recognize certified or express or priority mail as proof So what is the best way to make sure IRS receives it? I generally do it via certified mail with a return receipt. They do send back the return receipt. Never had a federal or state tax return get lost in 50...
by JW-Retired
Thu Apr 12, 2018 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Fund IRA's or not? Possible to have too much in IRA's?
Replies: 20
Views: 1851

Re: Fund IRA's or not? Possible to have too much in IRA's?

Coming back and adding to this: I looked into the process more. It turns out that I will need a 1099-R from Vanguard for the conversion. I will call Vanguard in the morning and see how quickly this would be issued. (Or can we do the conversion right away--before April 18th--and still file this with...
by JW-Retired
Wed Apr 11, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6793

Re: Why traditional IRA better than Roth IRA

Folks, don't forget about the standard deduction which could make quite a lot of the traditional IRA withdrawal tax-free. So no taxes going in and no taxes coming out. I haven't run the numbers, but suppose a MFJ family had $72K a year from $30K Social Security checks and $42K from a traditional IR...
by JW-Retired
Tue Apr 10, 2018 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Fund IRA's or not? Possible to have too much in IRA's?
Replies: 20
Views: 1851

Re: Fund IRA's or not? Possible to have too much in IRA's?

These are our tax-advantaged accounts: His Roth IRA: $48,362 His Rollover IRA (not Roth): $88,580. His 401(k): $358,165 - just under half of this is Roth. Her Roth IRA: $31,570 Her Inherited IRA (not Roth): $3,399,992 Her inherited IRA is different and doesn't come into this at all, so she can do a...
by JW-Retired
Tue Apr 10, 2018 7:51 am
Forum: Investing - Help with Personal Investments
Topic: Fund IRA's or not? Possible to have too much in IRA's?
Replies: 20
Views: 1851

Re: Fund IRA's or not? Possible to have too much in IRA's?

We do not qualify to fund Roth IRA's, but could each put $5,000 into traditional IRA's (for a total of $10,000 a year). We would not qualify for the IRA deduction however. The max contribution if you are age 50 or more is $6500. More important is you can convert your tIRA to a Roth IRA regardless o...
by JW-Retired
Mon Apr 09, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Roth Contribution 2017 MAGI Limits
Replies: 7
Views: 420

Re: Roth Contribution 2017 MAGI Limits

See page 6 of this for a nice table & list of what is and isn't taxable compensation for purposes of IRA contributions.
https://www.irs.gov/pub/irs-pdf/p590a.pdf
JW
by JW-Retired
Mon Apr 09, 2018 8:59 am
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 11386

Re: What is your AA, given your age? and, Why?

My current asset-allocation is approximately 40% bonds (money that I cannot afford to lose) and 60% stocks. Likewise ...... plus wife and I don't re-balance when stocks are down. That means a comforting thing about our 60/40 AA is if equities lose 50% of their value like in 2008, we still have 70% ...
by JW-Retired
Sun Apr 08, 2018 10:10 am
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 11386

Re: What is your AA, given your age? and, Why?

Wife and I are in our 70's with a target AA= 60/40 forevermore. We sell stocks to re-balance if/when equities get up to 65, never on the downside. (They got down to a hair below 50 in 08/09.) We don't sell bonds to re-balance, only sell them as a proportional share of our RMDs. Why?..... It's very e...
by JW-Retired
Sat Apr 07, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Help needed - Getting serious w/finances
Replies: 17
Views: 1583

Re: Help needed - Getting serious w/finances

Tax Rate: 24% Federal, 6% State State of Residence: CT Age: 37 Questions: 1. Should I roll over my old 401(k) into my new one or to an IRA? No IRA, roll it to the new 401k! Rolling to an IRA will seriously muck up your chance of doing a backdoor Roth. If you are in the 24% bracket you are at best a...
by JW-Retired
Fri Apr 06, 2018 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: New question in post #32- transferring work simple IRA to frozen simple IRA
Replies: 38
Views: 1568

Re: My work in starting a simple IRA --questions

Today, she announced that she has chosen to go with a simple IRA in place of a 401K as there were less admin fees for the company and some other reasons her advisors gave her. I was disappointed, as while I have IRAs and other accounts with Vanguard, I wanted to put more money additional money into...
by JW-Retired
Thu Apr 05, 2018 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion from Traditional IRA
Replies: 3
Views: 288

Re: Roth IRA conversion from Traditional IRA

You will have to pay taxes on any pre-tax money in the traditional IRA, and I believe you will also have to pay taxes on any gains from the non-deductible contributions. You will not have to pay taxes on the non-deductible contributions. Yes, and OP needed to file form 8606 "Nondeductible IRAs" wit...
by JW-Retired
Thu Apr 05, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Questions
Replies: 4
Views: 438

Re: Backdoor Roth Questions

I recharacterized the 2016 and 2017 Roth contributions to non-deductible Traditional contributions. In January 2018, I made a non-deductible contribution to my Traditional IRA for 2018. I'd like to convert everything back to Roth eventually, if not now. I have no deductible contributions in my Trad...
by JW-Retired
Tue Apr 03, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Any seasoned advisors to discuss best sectors/mutual funds for market out-performance?
Replies: 93
Views: 4462

Re: Any seasoned advisors to discuss best sectors/mutual funds for market out-performance?

What sectors, based on current information, do you think should outperform over the next 12 months? Any specific mutual fund picks? Suggest you pore over the latest Callan periodic table of investments for a while. It is a very pretty chart. Most all here think it isn't predictive but who knows, ma...
by JW-Retired
Sun Apr 01, 2018 7:19 pm
Forum: Personal Consumer Issues
Topic: Knocking pipes
Replies: 12
Views: 1461

Re: Knocking pipes

Meaty wrote:
Sun Apr 01, 2018 7:07 pm
JW-Retired wrote:
Sun Apr 01, 2018 7:04 pm
google "water hammer".
+1. Easy to fix. Shut off water to house, drain all pipes, turn water back on
Great! I'd forgotten the easy fix. :beer
(It empties air chamber piping of water.) ..... But I see OP tried that? Maybe read more about water hammer?
JW
by JW-Retired
Sun Apr 01, 2018 7:04 pm
Forum: Personal Consumer Issues
Topic: Knocking pipes
Replies: 12
Views: 1461

Re: Knocking pipes

google "water hammer".
by JW-Retired
Sun Apr 01, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: SS Survivor Benefit Eligibility
Replies: 4
Views: 389

Re: SS Survivor Benefit Eligibility

Yes, unless she had a larger benefit herself, the basic monthly amount he was receiving will be her basic amount as a survivor.
JW
by JW-Retired
Sat Mar 31, 2018 9:10 am
Forum: Investing - Help with Personal Investments
Topic: Edward Jones
Replies: 26
Views: 3513

Re: Edward Jones

2) Does anyone know exactly what Edward Jones charges yearly for mutual funds in a brokerage account? I know they charge 1.35 yearly (guided solutions) in my retirement account. Chances are they make about the same in a different way. Their long practice has been selling you funds with high front o...
by JW-Retired
Fri Mar 30, 2018 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Co-worker told me 401k/403b is a bad idea.
Replies: 52
Views: 5719

Re: Co-worker told me 401k/403b is a bad idea.

Her complaint was "When you hit 70 they make you start taking money from those accounts and you pay a lot of taxes on them." She's still working, her husband might still be working. She's stating the Roth would be a better choice. Actually, if still working they might be able to skip the RMDs for a...
by JW-Retired
Thu Mar 29, 2018 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Roll over 401k - Backdoor Roth question
Replies: 6
Views: 608

Re: Roll over 401k - Backdoor Roth question

Thanks for the replies. I am not sure about the expense ratios but both 401ks hold vanguard index funds. The new company uses Financial Engines as the fund manager. Vanguard index funds are a hopeful sign, but to make a rational decision you do need to know the actual expenses you pay in your parti...
by JW-Retired
Wed Mar 28, 2018 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Tax estimate with no earned income
Replies: 10
Views: 621

Re: Tax estimate with no earned income

Here is the tax estimator I usually use. I get zero Federal tax too.
https://www.hrblock.com/tax-calculator/#/en/te/aboutYou
JW
by JW-Retired
Wed Mar 28, 2018 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Roll over 401k - Backdoor Roth question
Replies: 6
Views: 608

Re: Roll over 401k - Backdoor Roth question

1.Should we leave her previous 401k untouched 2. Roll it over to new company’s 401k ( ending up with same custodian and investment options) 3. Roll it to a Traditional IRA but lose the ability to do backdoor Roth sports at least make it much more complicated Which company has lower 401k expenses? T...
by JW-Retired
Wed Mar 28, 2018 6:48 am
Forum: Personal Finance (Not Investing)
Topic: When to Take Social Security (again...)
Replies: 62
Views: 5167

Re: When to Take Social Security (again...)

If one has a secure financial situation outside of SS, then starting the benefits in your sixties will give you the option of enjoying certain aspects of life when you have your most vigor. I would think the reverse would be better for most retirees. Spend more from your "secure financial situation...
by JW-Retired
Tue Mar 27, 2018 9:18 am
Forum: Investing - Help with Personal Investments
Topic: Lowest fees for 403(b) for Texas Teacher
Replies: 19
Views: 1107

Re: Lowest fees for 403(b) for Texas Teacher

I'm looking for the lowest fees and start her 403(b) investing on mutual funds for the next 20 years (when she retires). Sorry, but knowing the administrator of the plan doesn't relate well to knowing the fees. You need to dig through the investment options and their fees inside your particular 403...
by JW-Retired
Mon Mar 26, 2018 11:36 am
Forum: Personal Finance (Not Investing)
Topic: When to Take Social Security (again...)
Replies: 62
Views: 5167

Re: When to Take Social Security (again...)

I have not crunched the numbers after the tax law changes but an over 65 couple can have $25K in taxable income and $35K in Social Security and pay very little if any federal income tax. I have not crunched the numbers after the tax law changes but an over 65 couple can have $25K in taxable income ...
by JW-Retired
Fri Mar 23, 2018 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Losing friends/family when wealthy
Replies: 118
Views: 10222

Re: Losing friends/family when wealthy

It appears that the closest people such as friends and family members are more passive aggressive instead of being genuinely happy for our success. For those of you that have accumulated a high net worth from modest means, have you experienced a loss of friends/family? No, but wife and I don't shar...
by JW-Retired
Thu Mar 22, 2018 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Spouse's tIRA and backdoor Roth
Replies: 3
Views: 231

Re: Spouse's tIRA and backdoor Roth

My wife has $11k in a 403b from a previous job My wife has $20k in a spousal traditional IRA funded with deductible contributions I'm interested in a backdoor Roth IRA, but I'm not willing to pay the taxes to convert my traditional IRA to a Roth. However, I could convert my wife's spousal IRA to a ...
by JW-Retired
Thu Mar 22, 2018 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Basic question!
Replies: 22
Views: 1965

Re: Basic question!

Thanks everyone! What is the argument against American Funds that I can give as my reasoning? I am sure I will be shown some graph of the American Funds performance beating these others over the years. No use giving them any reasoning or talking to them at all. Just call Vanguard, fill out their pa...
by JW-Retired
Thu Mar 22, 2018 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Helping daughter set up an IRA
Replies: 28
Views: 1290

Re: Helping daughter set up an IRA

Typically, it is the earned income or the annual limit ($6500) whichever is less. but then the above link says everyone can contribute to a traditional IRA up to a limit regardless of income. That means whether student has earned 6500 or not we can still invest in IRA up to 6500. Is this correct? N...
by JW-Retired
Wed Mar 21, 2018 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: Spousal Social Security
Replies: 14
Views: 1590

Re: Spousal Social Security

When she files for her full PIA, I'm going to file for half of hers based on her work record when I turn 66. I'll continue to get half of hers until I reach 70 when I will take SS based on my own record. At sixty six, if we both took social security then, I would get about 200 dollars a month more ...
by JW-Retired
Wed Mar 21, 2018 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: How much tax on back-door Roth?
Replies: 11
Views: 792

Re: How much tax on back-door Roth?

Too high to contribute directly to Roth, but am still in 24% bracket based on W-2s. So, are you saying that the rolled over funds will be taxed as if they were additional income in that year? There is no "as if" to it, the funds are additional income! You deferred that income so you could take it l...
by JW-Retired
Wed Mar 21, 2018 12:21 pm
Forum: Personal Consumer Issues
Topic: Most Effective Rat Poison
Replies: 35
Views: 2826

Re: Most Effective Rat Poison

We can get quite a few in our neighborhood. I’m skeptical traps would work, or else you’d have to constantly replace them and catch/harm a lot of squirrels in the process. Google up "live traps". No civilian casualties whatsoever. You can catch and release the squirrels but drown any rats (in the t...
by JW-Retired
Wed Mar 21, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Helping daughter set up an IRA
Replies: 28
Views: 1290

Re: Helping daughter set up an IRA

Thank you, I really appreciate the help. I wasn't sure if setting up a new IRA in 2018 would be allowed for 2017. You definitely have plenty of time to have your daughter open a new IRA and you could fund it for 2017 or both years. You have until a April 17 deadline for the 2017 contribution. Sugge...
by JW-Retired
Wed Mar 21, 2018 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Helping daughter set up an IRA
Replies: 28
Views: 1290

Re: Helping daughter set up an IRA

It wouldn't be a big refund, but anything would help at this point and since my husband and I have been discussing how to help her with long-term savings, this idea might fit the bill. We would also continue to fund it annually, as a gift and as an opportunity for her to learn about investing in in...
by JW-Retired
Tue Mar 20, 2018 9:51 am
Forum: Personal Finance (Not Investing)
Topic: H&R Block vs TurboTax (spoiler: HRB is awful)
Replies: 70
Views: 6698

Re: H&R Block vs TurboTax (spoiler: HRB is awful)

Why do you dislike cloud-based versions? 2) Cloud-based versions means my tax records (including names, SSNs, DOBs, bank account numbers) are permanently stored on a server that is accessible to anyone who manages to hack my log-in credentials. (Downloaded software allows me to keep my tax records ...
by JW-Retired
Mon Mar 19, 2018 8:22 am
Forum: Investing - Theory, News & General
Topic: Incredibly sleazy Northwestern Mutual cold caller
Replies: 78
Views: 7716

Re: Incredibly sleazy Northwestern Mutual cold caller

How this call would have gone if they reached me..... Max: Hi, this is Max at Nortwestern...... click I hang up. Yeah, but he did make you answer the phone. Our phone tells us who is calling (verbally from across the room) so we would not have picked up unless we know him. If the caller starts to l...
by JW-Retired
Sun Mar 18, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Spoke to a financial advisor yesterday - what do you think he's up to?
Replies: 81
Views: 8215

Re: Spoke to a financial advisor yesterday - what do you think he's up to?

The bit I find most compelling from the thread is not to mix employment and personal investments. We feel no pressure to move our money into their management. It will not happen. That's good to hear! :beer Can I ask if this is an Edward Jones advisor? They do teach their advisors to hit up all thei...
by JW-Retired
Sun Mar 18, 2018 9:52 am
Forum: Investing - Help with Personal Investments
Topic: How best to use carryover capital losses?
Replies: 17
Views: 1411

Re: How best to use carryover capital losses?

1. I'll be in the 12% bracket this year and would pay 0% tax on CG up to $38.6k (which refers to "taxable income," not AGI, correct?). So it seems a waste to use some or all of my carryover if I sell funds. Does it make more sense to just take $3k max each year off my ordinary income? (I assume I c...
by JW-Retired
Sat Mar 17, 2018 7:16 pm
Forum: Investing - Theory, News & General
Topic: Is it better to sell off unwanted products in a traditional IRA before making the Roth conversion or convert first?
Replies: 5
Views: 498

Re: Is it better to sell off unwanted products in a traditional IRA before making the Roth conversion or convert first?

For instance, I'm rolling over a 403(b) into a Rollover (traditional) IRA and plan on converting into a Roth. Both times we have rolled over employer plan money to a mutual fund company, only cash was transmitted. The previous funds were liquidated and we were out of the market for few days. Once i...
by JW-Retired
Thu Mar 15, 2018 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Plan- input and comments
Replies: 8
Views: 672

Re: Roth Conversion Plan- input and comments

I am looking to begin $10k per year partial conversions to a Roth IRA from my 457 Def Comp account. Primary reasons are: to pay tax at current low rate, avoid future RMDs, leave balance, if any, to heirs tax free. Ages: Both 57 y/o Pension: $63k per year gross 2017 AGI: $66k, Taxable income: $45k E...
by JW-Retired
Thu Mar 15, 2018 8:13 am
Forum: Investing - Theory, News & General
Topic: Mutual fund expense ratio confusion
Replies: 7
Views: 693

Re: Mutual fund expense ratio confusion

401k and retail fund ERs are almost always different. Mostly they are higher in the 401k but not always.
JW
by JW-Retired
Wed Mar 14, 2018 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA possible
Replies: 4
Views: 424

Re: Backdoor Roth IRA possible

Probably he is just recycling last years email and forgot to edit it. But you might ask if he has used old forms for any other work he has done for you. :twisted:
JW
by JW-Retired
Wed Mar 14, 2018 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Cash out inherited IRA or just take RMD's?
Replies: 19
Views: 1399

Re: Cash out inherited IRA or just take RMD's?

What is the boglehead consensus for this? I am 29, 200,000 dollar inherited IRA. I can take RMD's or I was told cash the entire IRA out without penalty but would have to pay taxes on it. I assume if I cashed it out, the 200,000 would get hit with a pretty heavy tax bill come April. Why would you wa...
by JW-Retired
Wed Mar 14, 2018 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Trad IRA Conversion to Roth: Should I bother? [What is "earned income"?]
Replies: 23
Views: 1245

Re: Trad IRA Conversion to Roth: Should I bother?

Happy,
You mentioned Wellesley so your account appears to be with Vanguard. Phone them and they will know exactly what to do about you making too large a contribution.
JW
by JW-Retired
Wed Mar 14, 2018 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Umbrella Insurance
Replies: 16
Views: 1783

Re: Umbrella Insurance

People suggest it is very cheap, and I suppose it is considering the alternatives. Looking at it, I see about $800 for a $2M policy per year. Is that with in the norm? We pay $550 for $5M. We are retired and don't have teenage kids, but we do drive Silicon Valley freeways where millionaire drivers ...