Search found 6146 matches

by JW-Retired
Thu Jun 29, 2017 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Incorporating uncertain pension amount into net worth calculation
Replies: 20
Views: 780

Re: Incorporating uncertain pension amount into net worth calculation

I calculate net worth largely just to see how I'm doing compared to most Americans, but it has little to no practical value. I include the pension, but again its not a directly actionable exercise. If you include the pension then your comparison is going to be way off. Never heard of anybody includ...
by JW-Retired
Wed Jun 28, 2017 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Financial advisor question
Replies: 53
Views: 3780

Re: Financial advisor question

We switched to an AUM (and wrote a check when we met with him 2 to 4 times/year). For the last 5-10 years, we haven't "paid" anything. So I asked and he's being a bit obtuse. He sent back an analysis of a portion of our account (~2/3 of our assets) to show how the average annual fee went ...
by JW-Retired
Sun Jun 25, 2017 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Analysis of my portfolio as I contemplate early retirement?
Replies: 8
Views: 889

Re: Analysis of my portfolio as I contemplate early retirement?

You are only 51 so your $6M portfolio might have to last another 30 or 40-something years. If your expenses are $150k before taxes, that might mean (guessing) $200k is needed after paying Federal and CA taxes. That's a 3.3% draw-down. Historically, that should be OK but it's not a really huge safety...
by JW-Retired
Fri Jun 23, 2017 11:35 am
Forum: Investing - Theory, News & General
Topic: Why bonds when one's investment horizon is long?
Replies: 59
Views: 3910

Re: Why bonds when one's investment horizon is long?

At least for myself and the original poster both mentioned having long term horizons, 20+ years. As one nears retirement or needing the funds (5-10 years out) absolutely sequence of return risk is real and should be acknowledged. That long term horizon is subject to things going more or less as pla...
by JW-Retired
Fri Jun 23, 2017 10:08 am
Forum: Investing - Theory, News & General
Topic: Why bonds when one's investment horizon is long?
Replies: 59
Views: 3910

Re: Why bonds when one's investment horizon is long?

IMO, the main reason for bonds in your retirement portfolio is to be as prepared as possible for a long term economic emergency. A Boglehead type 1-year emergency fund is great for a temporary job loss but it's not going to go far enough for a prolonged depression. In the Great Depression bonds held...
by JW-Retired
Thu Jun 22, 2017 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: $14,000 inheritance wind fall
Replies: 9
Views: 1519

Re: $14,000 inheritance wind fall

Jags4186 wrote:Max the Roth today for 2017.

Max your 401k--use the remainder of the $14,000 to bridge the gap if maxing your 401k would cause you to be short on your bills.

fabis,
This. No reason to mess with a taxable account if you are not even close to maxing the 401k & Roth.
JW
by JW-Retired
Sat Jun 17, 2017 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: Forced to Convert 401k to IRA?
Replies: 17
Views: 1179

Re: Forced to Convert 401k to IRA?

All I can add is I've left my 401k with the employer several years past RMD age. Nothing changed about the account when I retired. No problem taking RMDs at all. At one point I talked to the 401k administrator company about something else and they reminded me I could roll the 401k to an IRA. I said ...
by JW-Retired
Fri Jun 09, 2017 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Should equals take SS at FRA or Early to preserve portfolio?
Replies: 30
Views: 2598

Re: Should equals take SS at FRA or Early to preserve portfolio?

I am hoping I will be able to leverage my mix of Taxable and Tax Deferred accounts I have to minimize taxes once I retire and hopefully end up with only a small portion remaining in tax deferred. Or I am being a dum-dum. Can't be very specific without knowing what your income streams are going to l...
by JW-Retired
Fri Jun 09, 2017 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Should equals take SS at FRA or Early to preserve portfolio?
Replies: 30
Views: 2598

Re: Should equals take SS at FRA or Early to preserve portfolio?

Taxes are the other huge consideration. SS income is highly federal and state tax advantaged. Trading a reduced tax deferred investment portfolio for a bigger SS benefit might cut your taxes in half. Run some scenarios through your tax software. I make the assumption it would be an increase in a Ta...
by JW-Retired
Fri Jun 09, 2017 7:30 am
Forum: Investing - Help with Personal Investments
Topic: Should equals take SS at FRA or Early to preserve portfolio?
Replies: 30
Views: 2598

Re: Should equals take SS at FRA or Early to preserve portfolio?

given that ........individual Social Security benefits cease when the beneficiary dies would it be better to take our benefits at FRA or even a couple years early to deplete less of our investment portfolio instead of delaying until 70? No. The survivor will always get an amount equal to the higher...
by JW-Retired
Thu Jun 08, 2017 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Work Roth 401k, check my math
Replies: 14
Views: 911

Re: Work Roth 410k, check my math

I've read over and over the differences of traditional vs roth. Can you explain your thought process for why you suggested a traditional might be better? We can't know which is better without guessing what your marginal tax bracket is now, and also what your tax bracket is likely to be when you are...
by JW-Retired
Mon Jun 05, 2017 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: How to recover cost basis of Roth IRA?
Replies: 15
Views: 1206

Re: How to recover cost basis of Roth IRA?

BFRAME,
I assume your parents were contributing to a Roth in your name? Did you have the proper W-2 or other taxable compensation income to make that legal?
https://www.irs.gov/retirement-plans/tr ... -roth-iras
JW
by JW-Retired
Mon Jun 05, 2017 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Edward Jones
Replies: 22
Views: 2171

Re: Edward Jones

3redgeraniums, .....snip.......... I suggest you seek answers to your questions here on this forum. It's all anonymous and you will get advice from a number of very experienced investors. There will be no conflict of interest as there will be at EJ or at other for-profit companies. Thousands of inv...
by JW-Retired
Wed May 31, 2017 7:56 am
Forum: Investing - Help with Personal Investments
Topic: Choose muni or index to avoid SS tax
Replies: 4
Views: 513

Re: Choose muni or index to avoid SS tax

I always go to a tax estimator and put in all the different flavors of income you might have. Then increment each flavor to see the marginal tax effect. It can vary all over the place if you are taking SS. I've found the H&R Block one to be the quickest and easiest to use for this. You do defini...
by JW-Retired
Wed May 31, 2017 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Really trying to understand no bonds in taxable
Replies: 46
Views: 3139

Re: Really trying to understand no bonds in taxable

I'm shooting for the moon with no bonds in taxable. I have equities in my Roth IRAs and they are doing great. I like bonds in tax-deferred because that leaves room for equities in taxable and in Roths. When my taxable account goes way up, I won't have to pay taxes on it because I won't be able to s...
by JW-Retired
Tue May 30, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: i am my own "guy," but not sure I should advertise that
Replies: 107
Views: 13639

Re: i am my own "guy," but not sure I should advertise that

This is one reason why I like to recommend the "If You Can" booklet: It is only 16 pages, probably about the limit of what folks would read. It is instantly available as a PDF or Amazon Kindle book. It suggests the 3-fund portfolio. It warns about "advisors". It gets into person...
by JW-Retired
Tue May 30, 2017 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio at EJ but have regrets now
Replies: 37
Views: 3091

Re: Portfolio at EJ but have regrets now

A 1.35% fee would be okay only IF the investments did really, really well. But from what I've heard from other EJ customers, they say it's lackluster performance, most of the time. No, it wouldn't be OK. See http://www.buyupside.com/calculators/feesdec07.htm for the long term effect of a 1.35% fee....
by JW-Retired
Mon May 29, 2017 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio at EJ but have regrets now
Replies: 37
Views: 3091

Re: Portfolio at EJ but have regrets now

They have been forced by a new law to change their fee approach from load funds and high expense ratio fund picks (with annual 12b-1 fees going to EJ), to basically an assets under management (AUM) fee like your 1.35% per year. Maybe you won't be paying very much more than than under their old syste...
by JW-Retired
Mon May 29, 2017 7:01 am
Forum: Investing - Help with Personal Investments
Topic: After tax efficient investment
Replies: 15
Views: 1548

Re: After tax efficient investment

I do not know what backdoor Roth IRA is. I just have a regular IRA and currently putting 5500 per year into it. My tax bracket is 28%. Assume you mean a regular Roth IRA because a tax bracket of 28% isn't compatible with deductible tIRA contributions if you have a 401k at work. A backdoor Roth is a...
by JW-Retired
Sun May 28, 2017 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: A more modest inheritance
Replies: 16
Views: 2539

Re: A more modest inheritance

Some of it, about $20,000, is in bullion coins. Some in AT&T stocks, ........ Sell everything in the inheritance and convert it to your presumably more appropriate choice of investments. If the inheritance is at all different from what you would buy now if it was cash, then it makes no sense to...
by JW-Retired
Sun May 28, 2017 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: How are my investments?
Replies: 10
Views: 828

Re: How are my investments?

elephantcow,
I assume your listing of "$5,500 - 401k" really went to an IRA.

And I would have some semi-token amount of bonds. Something to tap as a last ditch emergency fund if you lose your job in the next big recession.
JW
by JW-Retired
Sun May 28, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Target date funds & tax implications of retirement prep
Replies: 12
Views: 905

Re: Target date funds & tax implications of retirement prep

I wouldn't use a target fund. If you are in a high tax bracket, which it sounds like you are with 90% of your assets in taxable, then get your AA via muni bonds in your taxable account. No problem with tax efficiency of those. JW ps: I see retiredjg already said this..... but I'll add my comment on ...
by JW-Retired
Sun May 28, 2017 9:56 am
Forum: Investing - Theory, News & General
Topic: Is it investor behavior that dooms Active Mutual Funds?
Replies: 28
Views: 1526

Re: Is it investor behavior that dooms Active Investing?

nedsaid wrote: Active management won't disappear, Vanguard is getting us back to a more sane equilibrium.

A sane equilibrium would be doom to a lot of them.
JW
by JW-Retired
Sun May 28, 2017 8:59 am
Forum: Investing - Theory, News & General
Topic: Is it investor behavior that dooms Active Mutual Funds?
Replies: 28
Views: 1526

Re: Is it investor behavior that dooms Active Investing?

I think human behavior affects active management. It must be frustrating for managers to meet redemptions just as there are bargains all over the place. Too much money flooding in after hot performance creates the problem of too few good investment ideas. Agree. Moreover, as "smart" inves...
by JW-Retired
Sun May 28, 2017 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Avoiding Taxes with RMD
Replies: 59
Views: 6715

Re: Avoiding Taxes with RMD

The following link is to the spreadsheet file in this forum, that you can download, with explanation of the Social Security "hump" and the impact of SS on taxes and such. Yes, a good one. Sorry this information comes too late to do any more significant tax reduction with it. Once you are ...
by JW-Retired
Sat May 27, 2017 10:22 pm
Forum: Personal Consumer Issues
Topic: Tell me about Alaska
Replies: 60
Views: 6523

Re: Tell me about Alaska

Sorry to hijack this thread but I am also planning a trip to Alaska this July. ........................... Dog Sled Tour.. Expensive but i am looking into companies offering helicopter tours into glacier then couple miles of dog sledding in the Glacier. Anyone done this. Does this worth the money? ...
by JW-Retired
Sat May 27, 2017 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Asking for help/ideas for my Father's retirement fund
Replies: 33
Views: 1248

Re: Asking for help/ideas for my Father's retirement fund

They match 1% of 4% of his salary. So if he makes 1200 a week, 4% would be $48, they put in $12. That's the max, even though he is putting in $200 a week, they only match the 1% of 4% of his salary. So even though he puts in $200 a week, they still only match the $12. Are you certain about this? I ...
by JW-Retired
Sat May 27, 2017 9:45 am
Forum: Personal Finance (Not Investing)
Topic: i am my own "guy," but not sure I should advertise that
Replies: 107
Views: 13639

Re: i am my own "guy," but not sure I should advertise that

This is one reason why I like to recommend the "If You Can" booklet: It is only 16 pages, probably about the limit of what folks would read. It is instantly available as a PDF or Amazon Kindle book. It suggests the 3-fund portfolio. It warns about "advisors". It gets into person...
by JW-Retired
Fri May 26, 2017 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Investing money after IRAs are maxed
Replies: 9
Views: 947

Re: Investing money after IRAs are maxed

Should I set aside $18k in cash and just contribute every cent of my pay to my 403b until I max it out, and live off the cash I set aside? Not sure about 403b plans, but in many 401k plans there can be a bad pitfall in doing this. You can lose out on big portion of the company match. The match migh...
by JW-Retired
Fri May 26, 2017 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Can I really pay no capital gains on $100k?
Replies: 31
Views: 5977

Re: Can I really pay no capital gains on $100k?

But about a year ago it (TaxCaster) adopted a question-and-answer interface that I find cumbersome. These days I generally just use my spreadsheet. I've had the same frustration with TaxCaster's new update. Happily, I've found the HR Block Tax Calculator now has much quicker input. Most important, ...
by JW-Retired
Thu May 25, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding Taxes with RMD
Replies: 59
Views: 6715

Re: Avoiding Taxes with RMD

In 2016 I had a calm tax year, owed no taxes and only used the itemized deductions thanks to some medical costs. I have lived off of money that was already taxed and a small pension, and delay social security until 70. By "owed no taxes" do you mean you paid zero income tax in 2016? If so...
by JW-Retired
Thu May 25, 2017 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions Post Retirement
Replies: 19
Views: 1904

Re: Roth Conversions Post Retirement

I regularly see threads here that suggest that conversions to Roth are a "no brainer" up to 15% tax bracket. My "problem" is that my (non COLA) pension plus two immediate annuities pay at $225,000 per year. This, with dividends from my after tax portfolio (essentially all in VTI...
by JW-Retired
Thu May 25, 2017 9:12 am
Forum: Personal Consumer Issues
Topic: Should I drink or sell my Pappy 12 year?
Replies: 65
Views: 7004

Re: Should I drink or sell my Pappy 12 year?

CheapFool wrote:..... won the option of buying 1 bottle of Pappy Van Winkle 12 year.

Buying at what price compared to retail?
JW
by JW-Retired
Thu May 25, 2017 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions Post Retirement
Replies: 19
Views: 1904

Re: Roth Conversions Post Retirement

I regularly see threads here that suggest that conversions to Roth are a "no brainer" up to 15% tax bracket. My "problem" is that my (non COLA) pension plus two immediate annuities pay at $225,000 per year. This, with dividends from my after tax portfolio (essentially all in VTI...
by JW-Retired
Wed May 24, 2017 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Verifying IRS expectations on Inherited IRA
Replies: 20
Views: 1090

Re: Verifying IRS expectations on Inherited IRA

On a "standard" IRA, there is a Form 5428 that is issued every May that tells the owner what the expected RMD was supposed to be. I've taken IRA RMDs for several years but have never seen a Form 5428? Goggle didn't seem to know of a 5428 that seems relevant either. As others pointed out, ...
by JW-Retired
Tue May 23, 2017 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Contribution pre/post/Roth?
Replies: 20
Views: 1222

Re: Contribution pre/post/Roth?

Your current tax bracket and what you might estimate it to be in the future, determines whether you should be doing a Roth or tax-deferred 401k now.
If it's a low bracket now and you expect it be higher later, Roth may be fine for now.
JW
by JW-Retired
Tue May 23, 2017 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Confused -- Roth vs Traditional IRA
Replies: 8
Views: 656

Re: Confused -- Roth vs Traditional IRA

I am a 30 year old currently making $175,000 yearly. I have a 403(b), 457(b) account available to me through my job. Would I be better served putting money into a Traditional IRA rather than a Roth IRA? .................. If I happen to make more money and would not qualify for a Roth IRA, would pu...
by JW-Retired
Tue May 23, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: 401k vs Pension
Replies: 15
Views: 1433

Re: 401k vs Pension

You need both. Teachers in Texas don't pay into social security so basically the pension is just replacing that.

IMO, relying on just this single retirement income source will be a pretty lean retirement.
JW
by JW-Retired
Wed May 17, 2017 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Planning for retired parents
Replies: 10
Views: 849

Re: Tax Planning for retired parents

They both have pensions so they wouldn't have had much space left in the 15% bracket to do much converting anyways even without his SS. I'm not sure if it's worth it to start withdrawing/converting at 25%, that's what the modeling is for I suppose. If one of them were to pass the other gets half of...
by JW-Retired
Wed May 17, 2017 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 4273

Re: Delay SS, but claim if market plunges

Since the biggest threat to a portfolio is a bad sequence of returns early on in retirement, my delaying SS to 70 would exacerbate such a bad sequence of returns. I'm wondering whether a strategy would be to delay SS, but if the market has a large drop (e.g. 25% or more) in the region between my re...
by JW-Retired
Wed May 17, 2017 8:40 am
Forum: Investing - Help with Personal Investments
Topic: ROTH Conversion Goal
Replies: 13
Views: 848

Re: ROTH Conversion Goal

Thanks, I was thinking the calculus was going to be a bit fuzzy as there are a lot of variables to consider. I suppose that's by design... IMO, it's not fuzzy at all if you can estimate your income mix after age 70. How much pension, SS, RMD, interest/dividends, other. Once we retire that becomes a...
by JW-Retired
Tue May 16, 2017 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Planning for retired parents
Replies: 10
Views: 849

Re: Tax Planning for retired parents

They are retired yes. Dad started SS at 62, Mom plans to start taking at 62 - their earnings are comparable. Mom is questioning why she would wait until 70. If she takes SS early then she will probably be maximizing her federal + state tax rates and minimizing the SS income that the last to die sur...
by JW-Retired
Tue May 16, 2017 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Tax Planning for retired parents
Replies: 10
Views: 849

Re: Tax Planning for retired parents

My parents are looking for advice on how to handle their traditional 401k/IRA money. 59 & 64 Pension + SS = 72K/year take home pay (covers all expenses) 401k/IRA = 1.4M If they leave it as is then at 70 they will be forced to take RMD's I believe. Would they be better to start withdrawing or Ro...
by JW-Retired
Mon May 15, 2017 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) Plan Advisor Recommendation
Replies: 6
Views: 612

Re: 401(k) Plan Advisor Recommendation

Good evening, I am an officer and fiduciary for a 401(k) fund with around $50MM in assets. I am currently disappointed with our current advisor, who favors active management, high fees and underwhelming performance. I'm confused by you wanting an "advisor'? Are you really looking for a middlem...
by JW-Retired
Sun May 14, 2017 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth screw up?
Replies: 7
Views: 802

Re: Backdoor Roth screw up?

3) I tried to convert on Friday to Roth and received message that the two funds do not "settle until May 17 so only partial convert could be done? After Friday the account reflects a value of $6,508.65 so there is small gain? I am questioning if I should just leave as an IRA? It's just that we...
by JW-Retired
Thu May 11, 2017 8:10 am
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA/Roth/Tax Advantaged accounts
Replies: 10
Views: 871

Re: Traditional IRA/Roth/Tax Advantaged accounts

If you contribute to your 401k & your wife contributes to her 403b, that will decrease your MAGI (gross income-401k/403b contributions). Those contributions may decrease your MAGI enough to bring your MAGI down enough to contribute to a regular Roth IRA. bill Thanks for your reply, I keep findi...
by JW-Retired
Tue May 09, 2017 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: 401K- do I need to change anything?
Replies: 6
Views: 703

Re: 401K- do I need to change anything?

Expense ratio for this fund is 0.11. I feel that it is all stocks and would like to have bond ~ 20%. I do not have other asset or investment at this time. Planning to invest little more soon. Thank you for your reply. That's a good expense ratio. If you want 20% bonds then a very reasonable thing t...
by JW-Retired
Tue May 09, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: 401K- do I need to change anything?
Replies: 6
Views: 703

Re: 401K- do I need to change anything?

We prefer to cover the market and also minimize expenses. You get the market coverage with target date funds but sometimes they are too expensive.

What are the target date fund expense ratios compared to their separate index fund components?
JW
by JW-Retired
Tue May 09, 2017 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Question about Target Date Funds
Replies: 5
Views: 452

Re: Question about Target Date Funds

If I confused you, I'm really asking is the stock/bond mix in the target date fund enough, or do I need a fixed income portion. The bond (fixed income) portion of your portfolio is something the investor needs to choose for themselves. You didn't say what's in your previous 401k but you have a fixe...
by JW-Retired
Tue May 09, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: small change left over in IRA from backdoor conversion--what should I do
Replies: 7
Views: 638

Re: small change left over in IRA from backdoor conversion--what should I do

livesoft wrote:There is no reason to not convert the leftover money today. In fact, do it right now.

Yes, and next time choose the "all shares" box telling Vanguard how much to convert. That has invariably left a zero balance when I've done it.
JW

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