Search found 7003 matches

by JW-Retired
Sun Jan 13, 2019 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 44
Views: 3649

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: Investing - Help with Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 44
Views: 3649

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: 1632

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: Investing - Help with Personal Investments
Topic: Tax software for filing state returns
Replies: 12
Views: 502

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: 113
Views: 5237

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: 8360

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: Investing - Help with Personal Investments
Topic: RMD planning
Replies: 19
Views: 1696

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: 4887

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: 731

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: 731

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: 239

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: 4887

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: 4887

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: Investing - Help with Personal Investments
Topic: Another Edward Jones Transition to Vanguard
Replies: 12
Views: 812

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: Investing - Help with Personal Investments
Topic: Catching up on backdoor Roth
Replies: 6
Views: 286

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: Investing - Help with Personal Investments
Topic: How urgent is my Mom’s single-stock investment? (Sysco)
Replies: 35
Views: 1586

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: 16132

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: Investing - Help with Personal Investments
Topic: Sell IBM? Am I timing the market?
Replies: 11
Views: 957

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: 1081

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: Investing - Help with Personal Investments
Topic: Have you moved to ETF's? Why or why not?
Replies: 84
Views: 9848

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: 2658

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: 2658

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: Investing - Help with Personal Investments
Topic: Options for Tax-Inefficient Holding?
Replies: 5
Views: 273

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: 574

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: 6088

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: 5792

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: 20298

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: 502

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: 5545

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: Investing - Help with Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1810

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: Investing - Help with Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1810

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: 10061
Views: 1781899

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: Investing - Help with Personal Investments
Topic: 20M Inheritance - What is best option for small/no risk on principal?
Replies: 93
Views: 12060

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: Investing - Help with Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1810

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: Investing - Help with Personal Investments
Topic: In a Bear Market, What Are Some Best Practices
Replies: 53
Views: 7109

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: 10061
Views: 1781899

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: Investing - Help with Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1810

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: Investing - Help with Personal Investments
Topic: What to do with an old tIRA
Replies: 2
Views: 297

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...
by JW-Retired
Mon Dec 03, 2018 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Restarting SS at age 70
Replies: 7
Views: 705

Re: Restarting SS at age 70

They automatically deduct both medicare B and D from the monthly SS check. As I recall you need to file a W-4 withholding form to tell them how much tax to take out, if any.
JW
by JW-Retired
Fri Nov 30, 2018 7:36 am
Forum: Investing - Theory, News & General
Topic: Back Door Roth: Can it trigger an Audit?
Replies: 14
Views: 1258

Re: Back Door Roth: Can it trigger an Audit?

For what it's worth............I've never waited more than the couple of days it took for the money to appear in the tIRA. Also have never seen anybody here post a complaint that a back door Roth did trigger an audit. The very common trouble is they don't do their 8606 form right or they don't file ...
by JW-Retired
Thu Nov 29, 2018 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Form 709 [Gift tax] for gifting to child
Replies: 21
Views: 1108

Re: Form 709 [Gift tax] for gifting to child

Per the instructions for form 709: “If a gift is of community property, it is considered made one-half by each spouse. For example, a gift of $100,000 of community property is considered a gift of $50,000 made by each spouse, and each spouse must file a gift tax return.” It clearly says that EACH s...
by JW-Retired
Thu Nov 29, 2018 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Form 709 [Gift tax] for gifting to child
Replies: 21
Views: 1108

Re: Form 709 [Gift tax] for gifting to child

Thanks HueyLD. Yes, the amount is more than $30k and is considered community property even if it is from my earnings, as we are married. So, I gather that my spouse will also have to submit 709 for half of the amount > $30k gifted to our child. You can submit just one 709 for the both of you. One s...
by JW-Retired
Thu Nov 29, 2018 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Please Evaluate New Retirement Plan Options
Replies: 12
Views: 754

Re: Please Evaluate New Retirement Plan Options

fastpace_re wrote:
Thu Nov 29, 2018 11:59 am
According to the Powerpoint they showed us:

The Company will pay the following Plan expenses:

All investment advisory fees
Record-keeping platform fees
TPA service fees.

Investment fees (the cost of the mutual funds chosen) will be paid by members.
Great! :beer
by JW-Retired
Thu Nov 29, 2018 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Please Evaluate New Retirement Plan Options
Replies: 12
Views: 754

Re: Please Evaluate New Retirement Plan Options

Anyway, here are the fund choices at the beginning of 2019. Just curious if these are decent options or not. Pardon my skepticism. If you got all these expense ratios from the 401k information they look good, but it makes me wonder how the advisors and administrators get paid? All the ERs I checked...
by JW-Retired
Thu Nov 29, 2018 11:06 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Vanguard Roth Conversion
Replies: 3
Views: 221

Re: Backdoor Vanguard Roth Conversion

Did I do something wrong? What should I do with the $2.77 in place? Doesn't having the money there preclude me from performing another backdoor Roth next year? Can I withdraw it without penalty? Always convert "all" not a specific number. If you did that it shouldn't have left the $2.77..... but it...
by JW-Retired
Wed Nov 28, 2018 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: 401k rollover to IRA
Replies: 8
Views: 727

Re: 401k rollover to IRA

The ERISA issue is interesting. I live in a remote part of California and it does appear that an unfortunate legal situation could leave my retirement assets more vulnerable if I switch to a tIRA. From what I've read online, bankruptcy is an option. I do have a good relationship with a law firm my ...
by JW-Retired
Wed Nov 28, 2018 7:26 am
Forum: Investing - Help with Personal Investments
Topic: 401k rollover to IRA
Replies: 8
Views: 727

Re: 401k rollover to IRA

We really need to have some idea of your age, income, & expected future income. Is your income low enough that you will be able to contribute to a tIRA on into the future? If not this rollover IRA will be orphaned. Also, if you might sometime make too much to contribute to a Roth IRA, having a tIRA ...
by JW-Retired
Tue Nov 27, 2018 9:02 am
Forum: Investing - Help with Personal Investments
Topic: Starting SS to cover Roth conversion tax
Replies: 19
Views: 1379

Re: Starting SS to cover Roth conversion tax

Your thoughts please on starting wife's SS now at age 64, approximately 11000 annually, and using this cash to finance tax on Roth Conversions in the 24% bracket? I feel strongly that rates will be going up. Husband will start SS at age 70. 64 year old retired couple, solidly in the 24% tax bracket...
by JW-Retired
Sun Nov 25, 2018 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Draw Question
Replies: 32
Views: 2963

Re: Social Security Draw Question

Using the calculator it essentially told me to: 1. Have my wife wait until full retirement age at 66yrs 7 months 2. Have me file on my full retirement age which is like 67 years. Not sure why and will need to do more work on it but I think I would wait until I am 70 and if my wife waits it will be ...
by JW-Retired
Sat Nov 24, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: gift shares of mutual fund to an heir
Replies: 2
Views: 354

Re: gift shares of mutual fund to an heir

If you give the shares, there is no step-up. Your cost basis goes with the shares. If you die and the heirs inherit the shares, then they get the step-up. So, gifting may not be such a good idea. If the potential heirs have a lower tax rate for realized cap gains then you have, it can still be a fa...