Search found 686 matches

by billfromct
Sun Aug 19, 2018 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Choosing Best Annuity Option
Replies: 5
Views: 455

Re: Choosing Best Annuity Option

What about transferring the cash value of your annuity into a pre-tax rollover IRA? I had a "cash" value pension with 2 previous employers that terminated their pension plan (one company was bought by the other) & I rolled over both pensions into my IRA a few years ago. I could have taken annuities ...
by billfromct
Sun Aug 19, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation (College Graduate Edition)
Replies: 15
Views: 560

Re: Asset Allocation (College Graduate Edition)

With 35-40 years or longer, I would definitely be 100% stocks in my retirement accounts through my 20s & 30s. You just need to have the intestinal fortitude not to bail out during the next correction or 40% bear market. I checked back from 1940 through 2017 & the S&P 500, or it's predecessor (the S&...
by billfromct
Sat Aug 18, 2018 6:41 am
Forum: Personal Finance (Not Investing)
Topic: My Wife is going to do an independent contracting job-401k?
Replies: 10
Views: 608

Re: My Wife is going to do an independent contracting job-401k?

I helped my daughter set up a Vanguard Solo 401k 4 or 5 years ago when she had a 6 month government independent contract worker job. Since she was right out of college, 22 or 23 years old in a very low tax bracket, she funded the Vanguard Roth Solo 401k. She was also able to fund her Roth IRA since ...
by billfromct
Fri Aug 17, 2018 7:25 pm
Forum: Personal Consumer Issues
Topic: Switch to auto lease after retirement?
Replies: 38
Views: 2742

Re: Switch to auto lease after retirement?

DPM321, What is the included (no charge) miles for the 6 year lease period & what is the charge per mile at the end of the lease if you go over that included mileage? I have never leased a car, but one person mentioned that they used more miles then they planned after having to go back to the office...
by billfromct
Thu Aug 16, 2018 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional 401k? + Roth IRA
Replies: 4
Views: 362

Re: Roth or Traditional 401k? + Roth IRA

If I was in my 20s, I would bite the tax bullet and contribute to the Roth 401k, at least through your 20s. You can determine if it makes sense to stay with the Roth 401k when you get into your 30s. You have these Roth retirement accounts to grow tax free for 35-40 year & take out state/Federal tax ...
by billfromct
Wed Aug 15, 2018 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Mid life financial help
Replies: 3
Views: 561

Re: Mid life financial help

You could transfer the annuities to Vanguard. The Vanguard variable annuities have reasonable expense ratios for annuities. The Capital Growth Portfolio, similar to the Vanguard Primecap, has an expense ratio of .63%. The Vanguard Total Stock Market Index has an expense ratio of .42%. I believe thos...
by billfromct
Wed Aug 15, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with child's investment
Replies: 2
Views: 327

Re: What to do with child's investment

You may want to use the money to open a Roth IRA when she gets her first after school/summer job when she turns 16. I opened (funded by SS survivor benefits) a Roth IRA for my kids when they started their first after school job & now that they are in their mid/late 20s, it's worth $100k-$125k; a goo...
by billfromct
Mon Aug 13, 2018 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Making money last through retirement
Replies: 26
Views: 4472

Re: Making money last through retirement

It's my understanding that the Federal tax brackets are based on taxable income (after deductions) & not the modified adjusted gross income (MAGI, before deductions) figure. So if your taxable income (married filing jointly) is under $77k, then there would be $0 long term capital gains for any LT Ca...
by billfromct
Sun Aug 12, 2018 9:01 am
Forum: Investing - Help with Personal Investments
Topic: “Safe” investment approaching retirement
Replies: 17
Views: 1694

Re: “Safe” investment approaching retirement

Just to give you an idea of my retirement stock/bond allocation as it my give you some ideas. I will start RMDs & SS next year & my retirement account has about 10 years of my old salary in fixed income. This equates to about 38% fixed income/62% stocks with the fixed income allocation being about 1...
by billfromct
Tue Aug 07, 2018 6:19 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Assistance and Retirement Advice
Replies: 29
Views: 3368

Re: Portfolio Assistance and Retirement Advice

As I get older, I've been consolidating my financial accounts to Vanguard & my credit union to keep things simple for my beneficiaries. You mentioned that you just opened a Vanguard Federal Money Market Fund (1.87%, SEC yield). I imagine the Federal MM Fund works the same as the Vanguard Prime MM Fu...
by billfromct
Sun Aug 05, 2018 11:30 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from an advisor to DIY . . . Please Help!
Replies: 18
Views: 1537

Re: Moving from an advisor to DIY . . . Please Help!

Your Roth IRA, if a stock fund, isn't "currently earning 6%". That may be the year to date return. That return is not guaranteed & may go up or down depending on the market. Fidelity is a good mutual fund company, but their "no cost" index funds (only 2) are loss leaders so they can get some free pu...
by billfromct
Sun Aug 05, 2018 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: Local Bank IRA
Replies: 10
Views: 531

Re: Local Bank IRA

It will be best to have all their traditional (tax deductible) IRA retirement accounts with a single investment company as they get closer to age 70 & required minimum distributions (RMDs). If traditional IRA accounts are at different investment companies, it will be more complicated to calculate RM...
by billfromct
Sun Aug 05, 2018 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: Front load 401k?
Replies: 23
Views: 1964

Re: Front load 401k?

I don't think you can contribute 100% of your paycheck into your 401k because money has to be withheld for SS & Medicare, income taxes, health insurance, etc. The company I worked for had a maximum 50% for normal 401k contributions & 25% maximum for catch-up contributions. I would think most compani...
by billfromct
Thu Aug 02, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Two target funds in my Vanguard. Should I split them up?
Replies: 6
Views: 430

Re: Two target funds in my Vanguard. Should I split them up?

My understanding is that the Vanguard Target Retirement Funds start at 90%/10% (stocks/bonds) & gradually move to 50%/50% at the target year, then gradually move to 30%/70% 7 years after the target year & stays at that 30%/70% asset allocation. The 50%/50% & 30%/70% allocation is a bit too conservat...
by billfromct
Wed Aug 01, 2018 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: $3k investment Vanguard funds Roth IRA which one of these should I start with
Replies: 21
Views: 2189

Re: $3k investment Vanguard funds Roth IRA which one of these should I start with

You don't give your age, but if you are in your 20s with possibly 35-40 years until retirement, I would be 100% stocks in my retirement accounts. You just need the intestinal fortitude not to panic when the next correction or bear market comes. You can start to move into your bond allocation once yo...
by billfromct
Wed Aug 01, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Where to invest grandparents gift ?
Replies: 6
Views: 594

Re: Where to invest grandparents gift ?

I would use it to fund a Roth IRA when they get their first Summer/after school job and have earned income. Your 18 year old daughter probably has earned income from a Summer job this year. My kids (now in their late 20s) have maxed out their Roth IRAs for the past 10-15 years (since their first job...
by billfromct
Sat Jul 28, 2018 12:26 am
Forum: Investing - Help with Personal Investments
Topic: Old age investing--Seeking advice
Replies: 23
Views: 2939

Re: Old age investing--Seeking advice

You mention that your traditional IRA is in 3 different funds that appears to be from 3 different mutual fund companies. The expense ratio (ER) you list for the Wellington Fund (25 basis points) is the same ER listed in the Vanguard website, so it appears the Wellington Fund is with Vanguard. Which ...
by billfromct
Tue Jul 24, 2018 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Widow needs help with asset allocation
Replies: 14
Views: 1681

Re: Widow needs help with asset allocation

I'm a widower with 2 grown kids & over the years I've been trying to simplify my financial assets. I have my financial assets down to my credit union, Vanguard & 1 individual stock (purchased through a dividend reinvestment plan about 25 years ago) which I plan to sell this year. Should something ha...
by billfromct
Mon Jul 23, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Please - Need Help With Pension Plan Options
Replies: 16
Views: 1064

Re: Please - Need Help With Pension Plan Options

One thing to be aware of is that many (don't know if all) company retirement health care plans require the insured to apply, at age 65, for Medicare Part B (doctor, out patient care, etc.) & some require Medicare Part D (prescriptions). I believe Medicare Part B starts out at about $134/month for ea...
by billfromct
Sun Jul 22, 2018 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Asset Allocation
Replies: 6
Views: 450

Re: Roth IRA Asset Allocation

Sounds like a good plan with your financial resources at this time. Since your income will rise handsomely over the years & you will need to invest in tax deductible retirement accounts (to reduce your taxable income) as you move up in tax brackets, you will want to invest as much as you can in Roth...
by billfromct
Sun Jul 22, 2018 7:13 am
Forum: Investing - Help with Personal Investments
Topic: 28yo Needs Help with 401K and Personal Investments
Replies: 19
Views: 1847

Re: 28yo Needs Help with 401K and Personal Investments

As others have suggested, you should open Roth IRAs for both you & your fiance. You need to build some tax diversity in your retirement accounts, especially when you are young and have 35-40 years for your Roth retirement accounts to grow state & Federal tax free & be taken out state & Federal tax f...
by billfromct
Sat Jul 21, 2018 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Pension Lump Sum: Short-term bonds?
Replies: 37
Views: 2041

Re: Pension Lump Sum: Short-term bonds?

Just as a follow-up to what Cyclesafe said. Make sure your employer's trustee does a "trustee to trustee" transfer. If you are going to deposit this money into a Vanguard rollover IRA, the check should be made out to "VFTC FBO Diver4242" (Vanguard Fiduciary Trust Company, For Benefit Of). If the che...
by billfromct
Fri Jul 20, 2018 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Transfer online savings/money market to income mutual fund?
Replies: 14
Views: 977

Re: Transfer online savings/money market to income mutual fund?

As Moto Trojan said (I didn't look up the fund), the fund lost about 4% year to date. That 4% loss includes the monthly interest payments, 5.25%/12 months. So if you invested $100k on January 1st, the bond fund would be worth about $96k now. The value of the $100k in the high yield savings account p...
by billfromct
Thu Jul 19, 2018 11:37 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Ladder Managed Account
Replies: 31
Views: 1635

Re: Bond Ladder Managed Account

Generally, if you are planning to hold a bond fund past the duration number of years, the value of the bond mutual fund will even out as the interest is reinvested in higher yielding bonds. I will start to take RMDs from my IRA next year & my fixed income allocation (about 38% of my IRA) is 25% MM, ...
by billfromct
Thu Jul 19, 2018 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Two Questions - College Tuition Payments
Replies: 11
Views: 1074

Re: Two Questions - College Tuition Payments

Will you be able to take advantage of the American Opportunity & Lifetime Learning tax credit? You get a 100% tax credit on 1st $2,000 qualified tuition payments and a 25% tax credit on the next $2,000 qualified tuition payment, for a total Federal tax credit of $2,500/year for each child. You could...
by billfromct
Wed Jul 18, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Accounts
Replies: 3
Views: 359

Re: Retirement Accounts

You can transfer the "lump sum pension" pension into a "rollover IRA" account pre-tax IRA). I did this with my company cash account pension. You will want to do a "trustee to trustee" transfer. The check should be made out to "VFTC FBO texasmancave". (Vanguard Fiduciary Trust Company; For Benefit Of...
by billfromct
Wed Jul 18, 2018 3:22 pm
Forum: Personal Consumer Issues
Topic: Europe travel Qs [Questions]
Replies: 63
Views: 3575

Re: Europe travel Qs

You may want to get a money belt. I was pick pocketed twice (Spain & Italy) but was wearing my money belt. The pick pockets got a few hundred pesetas & a few thousand lira (both times before the Euro was in place) which was $10-$15 as well as a beat up old wallet. Also you should clean out your wall...
by billfromct
Tue Jul 17, 2018 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: 28 years old and Accumulating
Replies: 13
Views: 1696

Re: 28 years old and Accumulating

You can transfer Vanguard mutual funds "on line". It's very easy. I would suggest you get onto your Vanguard account & play around with it to become familiar with how it works. I'm not suggesting you switch out of Wellington, just figure out what things you can do. You can put your cash in the Vangu...
by billfromct
Tue Jul 17, 2018 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Retirement Investments
Replies: 7
Views: 1196

Re: Help with Retirement Investments

The husband could have done a "file & suspend" where he could file for SS and suspend his filing (not collect any benefits) so the spouse can file for spousal benefits (1/2 the other's benefit). Then the higher income person can wait to file for a larger SS benefit at age 70. You have to have been b...
by billfromct
Mon Jul 16, 2018 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: Please help me untangle this mess!
Replies: 17
Views: 2582

Re: Please help me untangle this mess!

Are you really in the 15% tax bracket (2017, the equivalent for 2018 is a 12% Federal tax bracket) or was that a typo? The 12% Federal tax bracket for 2018 is taxable income for MFJ of $19k-$77.4k. If you are really in the 12% tax bracket, why would you do a backdoor Roth IRA contribution? If you yo...
by billfromct
Sun Jul 15, 2018 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Analysis + 125K Cash to Invest
Replies: 41
Views: 1636

Re: Portfolio Analysis + 125K Cash to Invest

If I was 26 with 35-40 years until retirement I would be 100% stocks in my retirement accounts, at least in my 20s & into my 30s. I was 100% stocks in my retirement accounts until my 40s. You just need not to panic when the next correction or bear market comes along. Others will disagree, saying you...
by billfromct
Fri Jul 13, 2018 6:23 am
Forum: Investing - Help with Personal Investments
Topic: 26 years old. Roth ira with edward jones last 3.5 years.
Replies: 44
Views: 2664

Re: 26 years old. Roth ira with edward jones last 3.5 years.

You don't mention if EJ charges an "assets under manage" (AUM) fee, but I think many financial management companies like EJ charge a 1% fee, in addition to sales fees (loads) on mutual fund purchases of 3.00%-5.00% of the assets invested. In the past some mutual fund companies have had "loads" as hi...
by billfromct
Wed Jul 11, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Dad asked for my help on pension decision that I do not understand
Replies: 43
Views: 3433

Re: Dad asked for my help on pension decision that I do not understand

I had a similar decision a year or 2 ago. Being single (a widower) I decided to roll the company discontinued pension into my rollover IRA because: -had no spouse to get her part of the joint pension -should I pass away, my kids would get the larger amount of money left in my rollover IRA -I was col...
by billfromct
Tue Jul 10, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: looking for a new (online) savings account home
Replies: 23
Views: 2054

Re: looking for a new (online) savings account home

It looks like Synchrony & Ally high yield savings interest rate is 1.75%. The Vanguard Prime MM Fund current SEC yield is 2.04% & you can transfer between your bank checking account & the Prime MM fund in a day or 2. There is a $3,000 minimum to open the Vanguard Prime MM Fund. I believe you can onl...
by billfromct
Tue Jul 10, 2018 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: 28/F looking for some financial advice
Replies: 22
Views: 2556

Re: 28/F looking for some financial advice

Since you have an account with Vanguard, why don't you just open a Vanguard Prime Money Market Fund? It currently pays 2.04% interest, you can write checks (over $250) & you can tie it to your credit union checking account. So you can transfer money back & forth. I think it it takes a day or 2. The ...
by billfromct
Fri Jul 06, 2018 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement advice for a 25 yr old
Replies: 29
Views: 2648

Re: Retirement advice for a 25 yr old

If I were 25 years old with 40 years until retirement, I would max out a Roth 401k while in my 20s then switch to the tax deductible 401k when I hit 30. Based on what you say, you will probably max out your 401k contributions throughout your career. You need to build some tax diversification in your...
by billfromct
Thu Jul 05, 2018 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Help A Recent College Grad
Replies: 4
Views: 545

Re: Help A Recent College Grad

I would suggest a 10%-15% fixed income allocation in your taxable accounts, while a100% stock allocation in your retirement accounts. In your mid 30s to mid 40s, you may look into starting to rebalance into your fixed income allocation in your retirement accounts. My kids, late 20s, are 100% stocks ...
by billfromct
Mon Jul 02, 2018 10:04 am
Forum: Personal Consumer Issues
Topic: Recommend a vehicle for $24,000 or less
Replies: 47
Views: 3901

Re: Recommend a vehicle for $24,000 or less

I bought a 2018 Camry L for $23,200 "out the door" in February. Great fuel economy; 35-36 MPG around town (rural area). Low entry into the car until you get used to it; may be a problem as I get older. My next vehicle will be a Toyota RAV4 or Forester. Consumer Reports says the Forester is very good...
by billfromct
Sun Jul 01, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner Indexing Help
Replies: 9
Views: 910

Re: Beginner Indexing Help

You don't mention it, but your Roth IRA contribution is a "backdoor" Roth IRA contribution, correct? The ability to fund a regular Roth IRA starts to phase out when the modified adjusted gross income (MAGI) of a married couple hits $189k if there is a retirement plan (pension, 401k, 403b, etc) avail...
by billfromct
Sun Jul 01, 2018 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Total Investment Strategy - Windfall
Replies: 30
Views: 2403

Re: Help with Total Investment Strategy - Windfall

Since you do not have a retirement plan available at work, you can contribute to a traditional tax deductible IRA regardless of your incokme. Google "IRA Deduction Limits" & go to the IRS link. The $5.5k tax deductible IRA contribution will save you a little Federal income tax. Of course this year (...
by billfromct
Fri Jun 29, 2018 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Recent widow: When to take Social Security?
Replies: 17
Views: 1420

Re: Recent widow: When to take Social Security?

I've always wondered if you take SS before FRA & make over $17k, how does SS know you made over the $17k limit in order to reduce the monthly benefit? When I signed up for Medicare Part B back in January, Medicare (I think Medicare & SS share information) went back to my 2016 Federal income tax retu...
by billfromct
Wed Jun 27, 2018 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: Please critique my asset allocation
Replies: 18
Views: 1063

Re: Please critique my asset allocation

I would agree to have 100% stocks in your retirement accounts with possibly 35-40 years until retirement. You can start to rebalance into your fixed income retirement allocation once you get into your 40s (20-25 years until retirement). Just don't panic when the next correction or bear market comes ...
by billfromct
Mon Jun 25, 2018 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional 401k with recent grad
Replies: 15
Views: 953

Re: Roth or Traditional 401k with recent grad

If she puts $18,500 into a Roth 401k this year with a conservative 7%/year annual return for 40 years (double her money about every 10 years), she would have about $296,000 state & Federal tax free $'s at age 62 (assuming she's 22 years old now). If invested in the traditional tax deductible 401k, t...
by billfromct
Sun Jun 24, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: S&P P/E Ratio
Replies: 50
Views: 3323

Re: S&P P/E Ratio

The Vanguard 500 Index (S&P 500) Fund's "weighted average price/earnings ratio" is listed as 21.0; as of 5/31/2018.

Vanguard doesn't say, but I would assume it would be based on the previous 12 months of earnings.

bill
by billfromct
Sun Jun 24, 2018 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: How to pay college tuition from a 529?
Replies: 56
Views: 5306

Re: How to pay college tuition from a 529?

My kids were in college 5-10 years ago. I had my kids 529 with Fidelity. I had Fidelity make the check (total semester cost minus $4,000) out to: University of X, FBO Jannefromct. I had Fidelity send the check to our home address. I wrote a personal check for $4,000 for tuition to take advantage of ...
by billfromct
Thu Jun 21, 2018 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about RMD and insurance.
Replies: 11
Views: 1121

Re: Questions about RMD and insurance.

The late enrollment Medicare Part B penalty applies if you did not have other health insurance after age 65 then sign up Medicare. I believe there is a 3 or 4 month grace period after age 65 to sign up with no penalty. I think there are other rules if you work for a small employer. If you apply for ...
by billfromct
Wed Jun 20, 2018 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: California Teacher 457 options
Replies: 7
Views: 546

Re: California Teacher 457 options

I'm not familiar with the difference between the 403b & 457 plans, but Vanguard is listed as one of the 403b offerings.

Being your first year of teaching & probably in a low (probably the lowest tax bracket of your career), why not go with a Roth 403b using Vanguard?

bill
by billfromct
Wed Jun 20, 2018 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: should my parents start a roth ira when 60 years old?
Replies: 8
Views: 950

Re: should my parents start a roth ira when 60 years old?

You don't give a lot of information about their current retirement accounts that would allow for better suggestions. I would agree a Roth IRA would be the best retirement account if they have earned income (W2 income) & do not have the ability to contribute to a company 401k or 403b retirement accou...
by billfromct
Mon Jun 18, 2018 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for a 26 year old?
Replies: 15
Views: 1444

Re: Asset Allocation for a 26 year old?

At age 26 with 35-40 years from retirement, I would be 100% stocks in my retirement accounts, at least into your 30s or 40s. I would have my fixed income allocation (10%-15%) in my taxable account where you can get at it, if needed. Others will say that you can rebalance into the stock market from y...
by billfromct
Mon Jun 18, 2018 8:46 pm
Forum: Personal Consumer Issues
Topic: Italy Trip Questions
Replies: 33
Views: 2021

Re: Italy Trip Questions

You don't say if you will rent a car. Renting s car in Italy is very expensive because you have to buy insurance. The credit card companies will not cover insurance in Italy (that's the way it used to be) like in the other European countries. I've been to Italy twice & rented cars before but will no...