Search found 6280 matches

by JW-Retired
Thu Sep 21, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 27
Views: 1143

Re: IRA to Roth conversion now (age 68) or RMD?

I expect my SS benefit to be about $33420 and my wife's to be $30264. Looks like you will be in a super high tax situation for your RMD then. Suggest you run all your projected final income steams income through a tax calculator. For example, I used https://www.hrblock.com/get-answers/tax-calculato...
by JW-Retired
Thu Sep 21, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 27
Views: 1143

Re: IRA to Roth conversion now (age 68) or RMD?

computerdoc wrote:
Thu Sep 21, 2017 8:47 am
I'm sorry, but I may have not communicated my situation clearly. Regarding the file and suspend, I was at FRA by April 30, 2016 and was able to file and suspend before that date, so my wife will be able to file for a spousal benefit at her FRA.
Great planning!
JW
by JW-Retired
Thu Sep 21, 2017 7:57 am
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 27
Views: 1143

Re: IRA to Roth conversion now (age 68) or RMD?

I’m 68 this November 2017, and my wife will be 66 in January 2018. We are both delaying taking Social Security until 70, but we are grandfathered into file and suspend and she will be able to file for spousal benefits when she turns 66. Our gross income right now is from our pensions ($50,000 taxab...
by JW-Retired
Wed Sep 20, 2017 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 27
Views: 1143

Re: IRA to Roth conversion now (age 68) or RMD?

My question is this: is it worth it to begin to make partial IRA to Roth conversions prior to age 70 ½ and the RMD, holding them to the amount that will keep us in the 25% bracket? We don’t plan to use the money once our full Social Security kicks in, and by my calculation, in a worst (best?) case ...
by JW-Retired
Wed Sep 20, 2017 7:42 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implications for converting rollover IRA to Roth
Replies: 5
Views: 366

Re: Tax implications for converting rollover IRA to Roth

Thanks Alan S. The main reason for us to convert her rollover IRA to a Roth (she doesn't work so there's no 401K that we can roll it into) is so we can do a backdoor Roth for her every year. It's just hard to stomach paying an additional $7K in taxes. But if we don't there's a lot of tax protected ...
by JW-Retired
Tue Sep 19, 2017 3:06 pm
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 22
Views: 2017

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

Example. AGI before conversion, $30k in 2017. A 401k partial conversion of 10k into a Roth held elsewhere would result in $30,000 + $10,000 = $40,000 new AGI where only $2,050 (the amount above single filing over $37,950) would be taxed at 25%? As Earl Lemongrab said, you are mixing this with capit...
by JW-Retired
Tue Sep 19, 2017 2:34 pm
Forum: Personal Consumer Issues
Topic: Getting (young) kids interested in coding
Replies: 68
Views: 3754

Re: Getting (young) kids interested in coding

daggerboard, Maybe your kids are a bit young, but I think something like the "League of Amazing Programmers" might fit what you want. 5th up to 12th grade. A grandchild has done it now for a couple of years. Started at 6th or 7th grade & she appears to be learning a lot. http://www.jointheleague.org...
by JW-Retired
Tue Sep 19, 2017 9:17 am
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 56
Views: 3696

Re: What is the main purpose of rebalancing?

I used to think I knew the answer(s) to this question, but thanks largely to this forum I learned that the answers are not a crisp as I originally thought. I also learned about the LMP/RP approach to asset allocations, which is what I now embrace. With this strategy, I never rebalance. What is LMP/...
by JW-Retired
Sun Sep 17, 2017 10:08 am
Forum: Personal Consumer Issues
Topic: Lawyer overbilling for prenup review
Replies: 66
Views: 5096

Re: Lawyer overbilling for prenup review

The only wrinkle really was that we wanted community property to be built up for five years and then after that additional income would be separate property . This did not seem terribly complex to me. Many of his suggested edits were simply sections that failed to mention that the section does not ...
by JW-Retired
Sat Sep 16, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: NQ 401k questions.
Replies: 3
Views: 215

Re: NQ 401k questions.

In Jan - I received a distribution of $25k from the plan. In talking to fidelity, I was told that my plan selection is 10 year withdrawal and cannot be changed. That means I'll be getting 25k each Jan. Since I do not need the money, is their anything I could do to minimize tax? Roll over into Ira? ...
by JW-Retired
Sat Sep 16, 2017 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: New employer's 401k and other questions
Replies: 10
Views: 791

Re: New employer's 401k and other questions

I'll second these lowest ER choices. You can get international and smaller cap index funds in your IRA. Ok, so in the trad IRA convert VFIAX to VTIAX as necessary to keep 20-30% of total portfolio in international? Partly, but I'd like to see some smaller cap funds too. VFIAX is a SP500 fund (the a...
by JW-Retired
Sat Sep 16, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: How can I be more savy about taxes?
Replies: 15
Views: 1685

Re: How can I be more savy about taxes?

Is there a book someone can recommend or site with good basic information? Surfer, As urged by everyone the IRS publications and paper tax forms are the place to start. Next, I highly recommend becoming familiar with one of the free online tax calculators. Using these, you can very quickly look at ...
by JW-Retired
Sat Sep 16, 2017 7:40 am
Forum: Investing - Help with Personal Investments
Topic: New employer's 401k and other questions
Replies: 10
Views: 791

Re: New employer's 401k and other questions

Consider using the S&P 500 fund and/or the total bond fund in your 401k. Their expense ratios are as good as you will get within your plan, the funds are analogous to what you already have in other accounts, and funds of these types are commonly used building blocks of many Bogleheads. carlos2, I'l...
by JW-Retired
Thu Sep 14, 2017 9:47 am
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3234

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

Instead of rebalancing, we have been using new contributions to maintain the desired Asset Allocation. This. Dan Same here. We are content with slow changes. Minimal exchanges to rebalance for the last 15-20 years. Prior to retirement we rebalanced only with new contributions and since then it's be...
by JW-Retired
Wed Sep 13, 2017 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth after age 70.5
Replies: 4
Views: 367

Re: Backdoor Roth after age 70.5

Since contributions to a traditional IRA are not permitted in the year you turn 70-1/2 and after, it seems clear that doing a Backdoor Roth is no longer feasible at that point. ...................... But starting 2020, if I'm still inclined to part-time employment, that avenue is off limits to me. ...
by JW-Retired
Tue Sep 12, 2017 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: Investing parents nest egg -- any final thoughts?
Replies: 37
Views: 2467

Re: Investing parents nest egg -- any final thoughts?

BTW, I only picked the 4.5% number after reading Bengen's book "Conserving Client Portfolio's During Retirement." He has a lot of heavy duty charts and math and arrives at the conclusion that 4.5% is still very safe. Bengen's "4% rule" paper was in 1994. Has his more recent 2006 book extended that ...
by JW-Retired
Tue Sep 12, 2017 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Investing parents nest egg -- any final thoughts?
Replies: 37
Views: 2467

Re: Investing parents nest egg -- any final thoughts?

We looked at annuities, but it didn't seem to make sense. First, if one or both of them do live longer than expected, I was concerned that inflation would kill the annuity over time. Buying an inflation protected annuity wasn't an option because the payments are so much less now. Moreover, we neede...
by JW-Retired
Tue Sep 12, 2017 2:19 pm
Forum: Personal Consumer Issues
Topic: Is it really Worth it to brown bag your lunch at work?
Replies: 309
Views: 16116

Re: Is it really Worth it to brown bag your lunch at work?

I guess it saved a few bucks, but more importantly I believe my brown bag lunch was critical for dealing with my health challenges. My last 15 years of working, DW made me a healthy low cal bag lunch that I could wolf down at my desk in 5 minutes. That left me 40 minutes at noon for a brisk walk, wh...
by JW-Retired
Mon Sep 11, 2017 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for 75 year old
Replies: 4
Views: 895

Re: Advice for 75 year old

- income from pensions, SS, RMD from IRA is about $250K - house is worth about $2.5M with $950K mortage at 3.5% - IRA is currently at $2.8M invested as follows (70% domestic stock, 5% Foreign stock, 10% intermediate bonds, 15% cash) - Taxable savings is currently $1M invested as follows (10% domest...
by JW-Retired
Sun Sep 10, 2017 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Another Help Mom (and me ) post
Replies: 18
Views: 1241

Re: Another Help Mom (and me ) post

My mom is just afraid of running out of money. Hence consideration of an SPIA and looking for better returns. Not looking for high risk. Just a bit more $. At age 85 a SPIA costing $200k would pay her $2211/month until death. Is that enough more dollars? Seems just what she needs. https://www.immed...
by JW-Retired
Sun Sep 10, 2017 11:01 am
Forum: Investing - Help with Personal Investments
Topic: moving money out of 401K to vanguard IRA
Replies: 5
Views: 382

Re: moving money out of 401K to vanguard IRA

ERISA is the main reason I've decided to keep the assets in my 401k.

https://www.irahelp.com/slottreport/how ... oll-it-ira
JW
by JW-Retired
Sat Sep 09, 2017 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else freeze their credit score?
Replies: 126
Views: 10664

Re: Anyone else freeze their credit score?

We froze our accounts with all 5 systems yesterday online plus one phone call with TransUnion because they had inaccurate info about where our S is living. We froze the big 3 plus ChexSystems and Innovis. The latter two we were not charged and they were recommended on a few places as well. The Equi...
by JW-Retired
Sat Sep 09, 2017 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: At what point would you considering Umbrella Insurance
Replies: 37
Views: 3310

Re: At what point would you considering Umbrella Insurance

At what point would you consider getting Umbrella Insurance? Does it depend on your net worth? Yes, your net worth and current & future income. Also, in my (non-attorney) opinion, on the income of all the other people on the freeway that you might get in a pile up with. If it's like US 101 in Silic...
by JW-Retired
Sat Sep 09, 2017 8:19 am
Forum: Investing - Help with Personal Investments
Topic: Company Sold, Now does this make sense?
Replies: 13
Views: 2068

Re: Company Sold, Now does this make sense?

I'm 47. $3.5M in investment accounts and another $150K in random 401Ks. I'm probably not done working but I'm getting close. I'm certainly going to take a little time off. I want to 2.5M in initially. I'm still working to transition the company and thus still have income that puts me in the highest...
by JW-Retired
Thu Sep 07, 2017 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Any experience with Adviser Investments
Replies: 7
Views: 860

Re: Any experience with Adviser Investments

So, was wondering if anyone thought paying someone close to 10K a year was worth it, 750K * 1.5% 1.5% is 37.5% of the classic 4.0% safe draw-down rate from a retirement nest egg. So, if you stay safe, in retirement you will be giving these fine advisers 37.5% of your gross retirement income from th...
by JW-Retired
Wed Sep 06, 2017 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: rebalancing and taxes, help a newbie
Replies: 6
Views: 392

Re: rebalancing and taxes, help a newbie

I recently thought if this same question. My understanding is that there is no immediate effect of taxes, but does it change future taxation in a Traditional 401k? Assuming going from stocks to bonds. Future taxation when you are withdrawing it in retirement is probably going to be less in dollars ...
by JW-Retired
Wed Sep 06, 2017 9:30 am
Forum: Personal Finance (Not Investing)
Topic: When calculating net worth, how do you value your house?
Replies: 167
Views: 8179

Re: When calculating net worth, how do you value your house?

We don't have any practical use for net worth, but I do calculate ours (including the house) every few months to see the trend. Just use the Zillow estimate at the time. It does seem to be pretty up to date around here.

It's California so assessment or purchase price is meaningless.
JW
by JW-Retired
Wed Sep 06, 2017 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Protecting moms assets from nursing home expenses
Replies: 96
Views: 8305

Re: Protecting moms assets from nursing home expenses

May I ask what kind of trust this was? It's still susceptible to the 5 year rule? I was also looking into a life estate for the home. But I will discuss with moms lawyer before we make any decisions. leonidas, Mom has a lawyer? Sorry, it strikes me that your Mom's assets and SS income are just so t...
by JW-Retired
Tue Sep 05, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: contributing to 401k & IRA & Roth
Replies: 5
Views: 478

Re: contributing to 401k & IRA & Roth

Wait a minute! The $5500 limit applies to your tIRA contribution and your Roth IRA contribution combined. You can't contributed $1750 to a tIRA and $5500 to a Roth IRA.

As was said, the $18k limit for 401k contributions is completely separate from this.
JW
by JW-Retired
Mon Sep 04, 2017 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Left financial advisor, feedback on DIY plan please.
Replies: 11
Views: 1504

Re: Left financial advisor, feedback on DIY plan please.

................. ++ New annual Contributions $18,000 roth401k $5,500 his Roth IRA $5,500 her Roth IRA $35,000 keogh .................. Tax Filing Status: Married Filing Jointly, 3 children under 5 years old Tax rates - marginal 44% (fed+state) State of Residence: CA Age:35 Occupation: Physician I ...
by JW-Retired
Mon Sep 04, 2017 10:10 am
Forum: Investing - Help with Personal Investments
Topic: Top Hat vs taxable dilemma
Replies: 10
Views: 1194

Re: Top Hat vs taxable dilemma

One thing I did not say was that the distribution as a lump sum at the time of termination was entirely my (poor) choice. The plan offered other options, yet none of them appealed to me at the time. .......................... It appears this Top Hat may be a good plan for some, just not the way I h...
by JW-Retired
Mon Sep 04, 2017 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3589

Re: Jason Zweig's tax bomb example

I think it strictly applies to actively-managed mutual funds and DOES NOT APPLY to passively-managed tax-efficient index funds such as those often recommended here on the forum. Over time index funds will have unrealized capital gains, but that should not be an excuse to not invest in them. Yes! Wh...
by JW-Retired
Mon Sep 04, 2017 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3589

Re: Jason Zweig's tax bomb example

Big time "buying the dividend". https://investor.vanguard.com/investing/taxes/buying-dividend?lang=en If the fund does a lot of active trading and makes lots of capital gains distributions you pay tax (unless below the 25% bracket). Typically, you would have all such "earnings" reinvested back into ...
by JW-Retired
Mon Sep 04, 2017 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA or Backdoor Roth?
Replies: 22
Views: 1611

Re: Roth IRA or Backdoor Roth?

Is there a downside to doing ved's #2? That's what I was going to suggest to my son, who has a Roth but no pre-tax IRAs (of any flavor). It seems to be a no-harm-no-foul situation that works whether you're over income limits or not. You get an extra year or so in the market, as opposed to waiting u...
by JW-Retired
Sun Sep 03, 2017 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA or Backdoor Roth?
Replies: 22
Views: 1611

Re: Roth IRA or Backdoor Roth?

jimbojones wrote:
Sun Sep 03, 2017 7:00 pm
Thanks - correct- no existing Traditional IRAs.
Including no rollover IRAs? (which are traditional IRAs.......... but you might need to read the 8606 form instructions fairly carefully to find that in print.)
JW
by JW-Retired
Sun Sep 03, 2017 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Question about pension and risk
Replies: 36
Views: 2109

Re: Question about pension and risk

I recently retired from a large Corp with a reasonable pension and was evaluating how it affects risk tolerance. I have 2M investable assets with ~ 45/55 stock/bond AA and was wondering if I should be more aggressive with the AA since there is a steady stream of income. When both the spouse and mys...
by JW-Retired
Sat Sep 02, 2017 10:39 pm
Forum: Personal Consumer Issues
Topic: Does anyone use Driving Shoes?
Replies: 40
Views: 3877

Re: Does anyone use Driving Shoes?

This may seem an odd question, but does anyone use special shoes for driving? Not special shoes, but I did just replace the clutch and brake pedal rubber covers on my 20 year old Honda. The old covers had become hard and slippery. No surprise that the new ones feel a whole lot more stable engaging ...
by JW-Retired
Sat Sep 02, 2017 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard - How to combine spouse accounts
Replies: 28
Views: 2767

Re: Vanguard - How to combine spouse accounts

Not a lawyer, but there is no gift tax in transferring assets to your spouse so I believe you can just combine whatever you want. About 20 years ago, when wife and I were setting up a living trust, the lawyer said this would be a little easier if you just declared everything you own community proper...
by JW-Retired
Wed Aug 30, 2017 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: IRS tax letter triggered by Turbotax's 8606
Replies: 50
Views: 6462

Re: IRS tax letter triggered by Turbotax's 8606

I don't know if there was a bug or not and maybe we will never know. This thread does demonstrate one thing very clearly in my opinion. If a person does not know what this form is supposed to look like, it's not hard to send the IRS a wrong one. This is why I keep hounding people to work through it...
by JW-Retired
Tue Aug 29, 2017 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Who should I ask about Social Security?
Replies: 10
Views: 1139

Re: Who should I ask about Social Security?

I have a few pretty simple questions about Social Security that I cannot find answers for online. I Googled Social Security lawyers in NYC, but, they all seem to want to represent clients whose claims have been denied, etc, and don't seem like the type of lawyer who could best advise me on benefit ...
by JW-Retired
Tue Aug 29, 2017 6:17 am
Forum: Investing - Help with Personal Investments
Topic: new job, near Roth IRA limit, what to do?
Replies: 7
Views: 718

Re: new job, near Roth IRA limit, what to do?

You sure don't want to have any funds in a traditional IRA if you might ever need to do a backdoor Roth. We can't tell for sure if that's you. But guessing you are single: If your gross income is $130,000 and you contribute the max $18k to your new 401k next year, that makes your MAGI $112k. That's ...
by JW-Retired
Sun Aug 27, 2017 6:22 pm
Forum: Personal Consumer Issues
Topic: Bosch dishwasher?
Replies: 90
Views: 6540

Re: Bosch dishwasher?

We are on our 2nd Bosch. Both were/are exceedingly quiet. The first one developed a problem with the sequencing after 10 years and we elected to get a new one rather than fix it. The second one has never had any problems with anything so far at 11 years. If/when this one dies we would probably get ...
by JW-Retired
Sun Aug 27, 2017 12:36 pm
Forum: Personal Consumer Issues
Topic: Bosch dishwasher?
Replies: 90
Views: 6540

Re: Bosch dishwasher?

We are on our 2nd Bosch. Both were/are exceedingly quiet. The first one developed a problem with the sequencing after 10 years and we elected to get a new one rather than fix it. The second one has never had any problems with anything so far at 11 years. If/when this one dies we would probably get a...
by JW-Retired
Sun Aug 27, 2017 8:21 am
Forum: Personal Consumer Issues
Topic: mold problem in bathroom --advice?
Replies: 18
Views: 1900

Re: mold problem in bathroom --advice?

I have a fan in there which we turn on after showers, leave the door open after showers, but still... We keep getting the mold. What do you do to get rid of mold in the showers especially the annoying kind in the grout and bath tub, and is there a way of getting rid of it once and for all? Any prod...
by JW-Retired
Sun Aug 27, 2017 7:24 am
Forum: Investing - Help with Personal Investments
Topic: 401K Post Tax or Taxable Investment
Replies: 12
Views: 745

Re: 401K Post Tax or Taxable Investment

Currently fund megacorp 401K at 15%, plus an additional $6,000 since I'm 50+. I have now hit the $18,000 pre-tax limit for the year. My 401K does allow you to continue to invest post tax $'s. ............................ My question is should I continue to invest the 15% post tax in the 401K or sho...
by JW-Retired
Sat Aug 26, 2017 10:27 am
Forum: Personal Consumer Issues
Topic: Fixing Slow Drains
Replies: 40
Views: 3069

Re: Fixing Slow Drains

Got a few slow shower and sink drains in the house, whats your tool or method of choice for fixing this issue. Do I buy a drain auger? Seen a few other things online but a bit skeptical. Are you sure it's the drains? We fought slow drains here and there for many years. We were roto-rootering the pi...
by JW-Retired
Sat Aug 26, 2017 7:47 am
Forum: Investing - Help with Personal Investments
Topic: 401K roller to IRA. Need to consider Roth?
Replies: 11
Views: 1006

Re: 401K roller to IRA. Need to consider Roth?

Our 401k (wife and me) is being terminated. We were business owners, but have downsized and the 401K does not make sense anymore due to fees and most of our income coming from other employers. I have about 350K and she has about 180K of assets in the old 401K I need to move this to an IRA. I was op...
by JW-Retired
Fri Aug 25, 2017 9:00 am
Forum: Investing - Theory, News & General
Topic: Amazed by Vanguard Wellington's Performance
Replies: 40
Views: 5936

Re: Amazed by Vanguard Wellington's Performance

Not an expert, but aren't some of these the "gotcha" funds that unexpectedly spin out large CGs -- especially in the face of market corrections, etc., when they are forced to sell their winners? So it's very hard to estimate your real-world after-tax performance , especially if you are in a higher ...
by JW-Retired
Fri Aug 25, 2017 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Retirement is Coming - Do my 3-Fund portfolios make any sense?
Replies: 20
Views: 2144

Re: Retirement is Coming - Do my 3-Fund portfolios make any sense?

An additional option available to the OP, since he is 66 now (and therefore born before 1954) is to file a restricted application for spousal benefits ONLY, while delaying filing for his own benefits as above. His wife's PIA is approximately $1100 (800/.75), implying a spousal benefit for him at FR...