Search found 642 matches

by billfromct
Sun Jun 24, 2018 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: How to pay college tuition from a 529?
Replies: 34
Views: 2944

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: 1004

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: 464

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: 863

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: 1279

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: 1846

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...
by billfromct
Thu Jun 14, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: 24 years old starting my first rothIRA
Replies: 14
Views: 1107

Re: 24 years old starting my first rothIRA

I would recommend the Vanguard 2060 Target Retirement Fund for your Roth IRA. You can open it with a $1,000 initial contribution. It will be 90% stocks (domestic & international) & 10% bonds (domestic & international). It will move to 50%/50% in 2060, then 30%/70% in 2067. Once you get better educat...
by billfromct
Wed Jun 13, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: 47 and clueless - direction needed
Replies: 47
Views: 5415

Re: 47 and clueless - direction needed

With income of $33k ($21k taxable income after subtracting the $12k standard deduction), you are in the 12% Federal tax bracket. After you roll over (trustee to trustee transfer) your Franklin Templeton tax deductible IRA into a Vanguard rollover IRA (pre-tax), you may want to open a Roth IRA (after...
by billfromct
Tue Jun 12, 2018 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Late to the party, looking for some advice
Replies: 18
Views: 2191

Re: Late to the party, looking for some advice

You may also want to consider starting a 529 college savings account for your 2 boys. Many states give tax deductions for contributing to your state's 529 plan. The 529 plan grows tax free & is state & Federal tax free when used to pay for college expenses. Vanguard has a low cost 529 plan (Nevada) ...
by billfromct
Mon Jun 11, 2018 9:12 pm
Forum: Personal Consumer Issues
Topic: 2018 RAV 4 or Camry
Replies: 28
Views: 1900

Re: 2018 RAV 4 or Camry

I'm in my late 60s, 6'1" & just bought a 2018 Camry. I've bought 5 Toyota vehicles over the past 32 years. Great fuel economy (35-36 mpg) around town. No real long highway trips yet but expecting 45-46 mpg for highway only driving. The Camry is low & I hit my knee on the lower part of the dashboard ...
by billfromct
Mon Jun 11, 2018 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Moving Employer 401K to Vanguard- Questions on RMD Strategy
Replies: 6
Views: 408

Re: Moving Employer 401K to Vanguard- Questions on RMD Strategy

I have my rollover IRA with Vanguard & will start RMDs next year. In my rollover IRA, my strategy was to have about 10 years of my last salary (about 12-13 years of RMDs) in fixed income. This turns out to be about 62% stocks/38% fixed income. Most stock market cycles run 5-7 years so with 12-13 yea...
by billfromct
Sat Jun 09, 2018 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k - fidelity vs. vanguard
Replies: 20
Views: 1302

Re: Solo 401k - fidelity vs. vanguard

Hey Spirit Rider, I said it was a "no brainier" for my daughter based on her circumstances as well as her wish to keep things simple.

Any decision to use Vanguard or Fidelity for a Solo 401k would have to be made on one's own circumstances.

bill
by billfromct
Sat Jun 09, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Existing Roth IRA
Replies: 15
Views: 724

Re: Existing Roth IRA

You don't mention if you & your fiancee are contributing to a tax deductible 401k, but if you aren't, that is a good way to lower your modified adjusted gross income (MAGI) below the $199k MAGI income limit for married filing jointly to contribute to a regular Roth IRA. MAGI can be complicated, but ...
by billfromct
Sat Jun 09, 2018 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k - fidelity vs. vanguard
Replies: 20
Views: 1302

Re: Solo 401k - fidelity vs. vanguard

Vanguard does offer a Roth Solo 401k. If you have a Vanguard money market account, you can transfer from the Vanguard MM fund into your Solo 401k. You can also transfer money from your bank or credit union checking account into your Vanguard MM fund. It would probably simplify things to have your in...
by billfromct
Fri Jun 01, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Capital gains distribution for index funds
Replies: 11
Views: 1358

Re: Capital gains distribution for index funds

I don't know if anyone explained why actively managed mutual funds normally distribute capital gains and index funds normally do not distribute capital gains or small capital gains. Actively managed funds sell & buy stocks based on their assumption that a particular stock is over valued, there is an...
by billfromct
Thu May 31, 2018 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Switching from Balanced Funds to Stock and Money Market Funds
Replies: 6
Views: 813

Re: Switching from Balanced Funds to Stock and Money Market Funds

You don't tell us your age or when you will start taking distributions from your retirement accounts. I will start taking RMDs next year & I am about 62% stocks, 38% fixed income in my retirement accounts. My fixed income in my retirement accounts are: -45% intermediate bonds (4.4 years duration) -3...
by billfromct
Sat May 26, 2018 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: CIT MM Now 1.85% [Money Market]
Replies: 25
Views: 2331

Re: CIT MM Now 1.85%

Since the Vanguard MM Fund now pays 1.88% interest, why would you use CIT Bank?

I believe you can write checks for $250 & above as well as electronically transfer money between your credit union/bank checking account. It takes 2 days to effect those transfers (either way).

bill
by billfromct
Fri May 25, 2018 7:39 pm
Forum: Investing - Theory, News & General
Topic: Couple of questions about passages from Bogle's book "Enough"
Replies: 19
Views: 2635

Re: Couple of questions about passages from Bogle's book "Enough"

I'm a little confused. What "unprecented plan" is John Bogle talking about?

I believe that Vanguard came into existence around 1976 & started the S&P 500 index fund about the same time.

What would a 1981 SEC ruling allow Vanguard to do that Vanguard had or hadn't been doing since 1976?

bill
by billfromct
Fri May 25, 2018 12:10 am
Forum: Investing - Help with Personal Investments
Topic: Should I open a traditional IRA for bond allocation?
Replies: 14
Views: 616

Re: Should I open a traditional IRA for bond allocation?

At age 26 with 35-40 years before retirement, I would be 100% in stocks in my retirement accounts. You can work towards your retirement bond allocation 15-20 years before retirement. Theoretically, if held for the long term, bonds will return the current interest rate. You don't provide pertinent in...
by billfromct
Wed May 23, 2018 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: Should I hire a financial adviser?
Replies: 13
Views: 1424

Re: Should I hire a financial adviser?

I agree with Dottie to consult with a CPA about any tax issues. Just be aware that some CPAs may get a referral fee for steering clients to a financial advisor. A fee only advisor is a good alternative. I believe that Vanguard offers a free consultation for new or potential customers with a certain ...
by billfromct
Wed May 23, 2018 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Contribution limits to Roth IRA and 401(k) with small earned income
Replies: 7
Views: 625

Re: Contribution limits to Roth IRA and 401(k) with small earned income

Contributing to a Roth 401k does not decrease your earned income. Contributing to a tax deductible 401k would reduce your earned income. My daughter did something similar during her first job out of college as an independent contractor (effectively self employed). She opened a Solo 401k & contribute...
by billfromct
Mon May 21, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: How are dividends from Vanguard taxed?
Replies: 9
Views: 851

Re: How are dividends from Vanguard taxed?

"Qualified" dividends are taxed at the long term capital gains rate. Most dividends from U.S. corporations are "qualified" dividends. Dividends that are not qualified are taxed as ordinary Federal income tax rates. Dividends from REITs are not "qualified" dividends. I also believe that there is a ho...
by billfromct
Mon May 21, 2018 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Noob investing, Want to avoid messing this up!
Replies: 16
Views: 1715

Re: Noob investing, Want to avoid messing this up!

First I would put that $88k into the Vanguard Money Market Fund, which is now paying 1.85%. From there you can transfer into other Vanguard funds. You don't say if your $80k income is gross income or after your 401k contribution. Either way, minus the $24k standard deduction for a married couple, yo...
by billfromct
Sun May 20, 2018 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 8110

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

If you do get a job, while collecting SS, your SS benefit will be reduced $1 for every $2 over $17,000 earned per year. At full retirement age (FRA) this penalty goes away. I waited until my FRA, age 66, to collect SS survivor benefits while still working. I will start my own SS benefits next year w...
by billfromct
Sun May 20, 2018 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 8110

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

As others have said, you may want to get a fee only fiduciary financial planner because there are other financial issues besides investing the $1.5m insurance money, such as: -income taxes (planning & filing status) -rolling over a company 401k plan into a rollover IRA (I guess Vanguard could do thi...
by billfromct
Sun May 20, 2018 12:05 am
Forum: Personal Finance (Not Investing)
Topic: both spouses not wait for SS ?
Replies: 26
Views: 3293

Re: both spouses not wait for SS ?

It isn't clear to me if either of you are still working because you said, "I guess the downside is she will only get the age 64 benefit, ever, unless she's still working when she reaches FRA." If one is under full retirement age & collecting SS & earns over $17k, $1 of SS is held back for every $2 e...
by billfromct
Sat May 19, 2018 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: New to investing 28 yo, advice on mutual funds
Replies: 7
Views: 879

Re: New to investing 28 yo, advice on mutual funds

You may want to open a Vanguard money market fund with the $12,000. The Vanguard MM fund is now paying 1.85% interest. You can write checks if over $250 & transfer money to open a Roth IRA or other Vanguard funds. You should also open a Roth IRA for your spouse as well. You want to build up your Rot...
by billfromct
Fri May 18, 2018 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Can I Roth convert 401k? (and other retirement acct questions)
Replies: 10
Views: 876

Re: Can I Roth convert 401k? (and other retirement acct questions)

You don't mention your marital status or your modified adjusted gross income (MAGI), but if you are "covered by a retirement plan at work (which you are having a 401k available)", the ability to contribute to a tax deductible IRA starts to phase out when your MAGI hits $63k if single, $101k if marri...
by billfromct
Fri May 18, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help Me Help Parents
Replies: 12
Views: 1404

Re: Help Me Help Parents

If she takes the immediate annuity route, the higher the interest rate & the older the person, the higher the payout. With interest rates going up (maybe 3 Fed increases this year & maybe 3 Fed increases next year), waiting until the end of 2019 may give her the best annuity payout. I believe that a...
by billfromct
Thu May 17, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Taking advantage of 0% tax rate on capital gains
Replies: 18
Views: 2004

Re: Taking advantage of 0% tax rate on capital gains

I'm assuming (you know what happens when you assume) VTSAX is the Total Stock Market Index. I haven't memorized the 150 or so Vanguard mutual fund symbols yet. It would help if you spelled out each fund along with the symbols.

Why not just transfer into the S&P 500 index?

bill
by billfromct
Tue May 15, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: VBK [Vanguard Small Cap Growth]
Replies: 8
Views: 468

Re: VBK [Vanguard Small Cap Growth]

I have the Vanguard Small Cap Value Index (PE 16.1) in my traditional IRA as well as my Roth IRA. The Small Cap Growth Index (PE 28.2) is too rich for my blood at this time in the market cycle. If the market tanks, the high priced stocks are usually the ones to get hit first. The Vanguard Small Cap ...
by billfromct
Tue May 15, 2018 8:07 am
Forum: Personal Consumer Issues
Topic: Cape Cod Vacation
Replies: 11
Views: 1361

Re: Cape Cod Vacation

You'll want to park at the Palmer Ave parking lot. The cost is $15/day. Palmer Ave is the main road heading down to Woods Hole. There is no ferry parking in Woods Hole. There is some on street parking (meter parking) near the Orceanagraphic Institute in Woods Hole, but I think there is a 4 hour max ...
by billfromct
Sat May 12, 2018 2:32 am
Forum: Investing - Help with Personal Investments
Topic: Just started a summer job. Should i start using them for their 401k?
Replies: 27
Views: 1798

Re: Just started a summer job. Should i start using them for their 401k?

You can open a Vanguard Roth IRA with an initial $1,000 contribution in a Target Retirement Fund. The Target Retirement 2065 would be appropriate and you could move it to another Vanguard fund if you want later. Most Vanguard funds require at least $3,000 to open a new fund. I believe the Vanguard S...
by billfromct
Fri May 11, 2018 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie With 457 Plan Options ?'s
Replies: 16
Views: 1180

Re: Newbie With 457 Plan Options ?'s

If I was in my 30s, with 30-35 years until retirement, I would be 100% stocks in my retirement accounts. You can start to move into your retirement bond allocation in your mid/late 40s, 15-20 years before retirement. You can have your fixed income allocation in your taxable account where you can get...
by billfromct
Tue May 08, 2018 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare enrollment-Part B only
Replies: 10
Views: 690

Re: Medicare enrollment-Part B only

Why are you signing up for Medicare Part B if you are still working & have employer healthcare? Will you cancel your employer health insurance? Have you compared your employer health insurance cost vs Medicare Part B plus Medicare Advantage along with Medicare Part D (prescriptions)? There are Medic...
by billfromct
Mon May 07, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Young investor, any advice?
Replies: 9
Views: 898

Re: Young investor, any advice?

You may want to open your Vanguard Roth IRA first, start with a target date fund ($1,000 minimum), stop your EJ Roth IRA contributions and fund the Vanguard Roth IRA for the rest of the year. Just make sure you don't put over $5,500 between the 2 Roth IRA accounts. When you plan to transfer the EJ E...
by billfromct
Mon May 07, 2018 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Best places for 401k green soldiers!
Replies: 11
Views: 1151

Re: Best places for 401k green soldiers!

Yes you could just work towards maxing out your 401k (traditional & Roth) before contributing to a Roth IRA. You definitely want to build some tax diversification in your retirement accounts with the Roth accounts. I would start a Roth IRA with Vanguard just to get things going with Vanguard so at s...
by billfromct
Mon May 07, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: DRIP (Dividend Reinvestment Plan)
Replies: 21
Views: 1836

Re: DRIP (Dividend Reinvestment Plan)

I bought Exxon & Texaco (subsequently bought by Chevron) back in 1992 through the company DRIP plan. I'm simplifying my portfolio to my local credit union & Vanguard & have decided to sell my individual stock holdings. I sold my Exxon stock in January & was charged a $70 ($69.88) "trading fee". Don'...
by billfromct
Mon May 07, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Correcting an Error? Invested high dividend index fund in taxable account.
Replies: 25
Views: 1816

Re: Correcting an Error? Invested high dividend index fund in taxable account.

I don't think it was mentioned, but most dividends from these high dividends mutual funds are "qualified" dividends which are taxed at the same rate as long term capital gains, at the Federal level; 15% for mostly everyone & 20% for the highest income earners. "Qualified" dividends do not include in...
by billfromct
Fri May 04, 2018 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: I inherited 1 million dollars, should I open an IRA or keep adding money to this million dollar brokerage account
Replies: 52
Views: 5219

Re: I inherited 1 million dollars, should I open an IRA or keep adding money to this million dollar brokerage account

You mentioned that you have a 1 year old. Have you started to save for college? You can open a 529 college savings plan. Vanguard has a good low cost 529 plan. You will also want to check to see if your state has a tax deduction to contribute to your state's 529 plan. Just be careful since some stat...
by billfromct
Wed May 02, 2018 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking advice for retirement contributions with employer automatic contribution
Replies: 7
Views: 335

Re: Seeking advice for retirement contributions with employer automatic contribution

The ability to fund a regular Roth IRA if married filing separately, starts to phase out when your modified adjusted gross income (MAGI) hits $120k; same as a single filer.

Any contributions to a tax deductible 401k would decrease your MAGI.

bill
by billfromct
Tue May 01, 2018 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Daughter starting college and I am retiring
Replies: 45
Views: 4565

Re: Daughter starting college and I am retiring

I would think your mailing address would be a hint of your state residency, especially if it changed after freshman year. If the mail sent to the original VA home address was returned, it would raise a red flag to the burser's office. Maybe now tuition bills are no longer sent via USPS but via email...
by billfromct
Tue May 01, 2018 2:39 am
Forum: Investing - Help with Personal Investments
Topic: Newbie - 529 Help
Replies: 18
Views: 1222

Re: Newbie - 529 Help

Put the $150k into the Vanguard 529 Interest Accumulation Portfolio (money market fund). It doesn't say the current interest rate, but does say the expense ratio is .16%, the same as the Vanguard Prime MM fund which now has a 1.82% interest rate. You can then "dollar cost average" into whatever fund...
by billfromct
Mon Apr 30, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security for a Widow
Replies: 10
Views: 1259

Re: Social Security for a Widow

You don't say if your sister is working or not. If she's still working and under her full retirement age, $1 in SS benefits will be withheld for every $2 earned over the $17,040 2018 earned income maximum. It's my understanding that the withheld SS money will be included to recalculate her SS benefi...
by billfromct
Mon Apr 30, 2018 1:15 pm
Forum: Personal Consumer Issues
Topic: Daughter and Girlfriend, age 19, taking cross country road trip. Advice?
Replies: 187
Views: 8986

Re: Daughter and Girlfriend, age 19, taking cross country road trip. Advice?

Each should have a separate car key with metal tag with their first name & cell phone number in case they lose the car key or leave it on the table at lunch or the coffee shop. I have an extra key hidden under the bumper in a Velcro "key hider" in my daughter's car. If this is done, just make sure s...
by billfromct
Fri Apr 27, 2018 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: New portfolio advice
Replies: 12
Views: 953

Re: New portfolio advice

What did you roll over your "401k from another employer" into?

bill
by billfromct
Fri Apr 27, 2018 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting 60k to someone
Replies: 18
Views: 2277

Re: Gifting 60k to someone

Some states may have a different gift tax threshold.

I believe Massachusetts has a $1m exclusion & Connecticut has a $2.6m exclusion for 2018 & may change in the future (I think CT goes up in 2019 & 2020). You may want to check the laws in your state.

bill
by billfromct
Fri Apr 27, 2018 11:11 am
Forum: Investing - Help with Personal Investments
Topic: Investing for a 17 y.o.
Replies: 18
Views: 1412

Re: Investing for a 17 y.o.

According to "the Google", a Dodge Demon MSRP is between $80k-$85k.

Good luck.

bill
by billfromct
Thu Apr 26, 2018 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for a 17 y.o.
Replies: 18
Views: 1412

Re: Investing for a 17 y.o.

In would suggest putting the $8,000 in a Vanguard Prime Money Market fund which is now paying 1.81%. Then you can figure out how to deploy that money. If he has any earned income, he can open a Roth IRA for as little as $1,000 in a Vanguard Target Retirement 2065 Fund. Of course he could put as much...
by billfromct
Thu Apr 26, 2018 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Would you critique my portfolio please? Thanks!
Replies: 14
Views: 1635

Re: Would you critique my portfolio please? Thanks!

I didn't realize that you could open an individual 401k (traditional or Roth) with only foreign self employment income but not an IRA. Seems inconsistent why the IRS wouldn't allow foreign employed (not self employed) U.S. citizens to save for retirement (IRA) while working overseas. Have you taken ...