Search found 805 matches

by billfromct
Fri Dec 14, 2018 12:17 am
Forum: Investing - Help with Personal Investments
Topic: Good fund choice for Teenager's IRA?
Replies: 8
Views: 340

Re: Good fund choice for Teenager's IRA?

What do you mean when you say, "I plan to put $1k in for her until she gets her real job"?

Will she have earned income during these years "until she gets her real job"?

bill
by billfromct
Wed Dec 12, 2018 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Another Newbie Question [IRA fund selection]
Replies: 7
Views: 318

Re: Another Newbie Question [IRA fund selection]

Since you & your wife "are not covered by a retirement plan at work" (no pension, 401k, 403b, etc.), there are no maximum income restrictions to prevent you from contributing to a tax deductible IRA or Roth IRA.

bill
by billfromct
Tue Dec 11, 2018 11:53 pm
Forum: Personal Consumer Issues
Topic: Trip to Italy
Replies: 41
Views: 2210

Re: Trip to Italy

Do you have to go in the Summer? Hot, crowded & more expensive. The best time would be April or May, but not the week before or after Easter. You will have (it's required) to buy insurance from the car rental agency; credit card won't cover anything. Also you should get an international driver's lic...
by billfromct
Tue Dec 11, 2018 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing retirement plan?
Replies: 5
Views: 622

Re: Choosing retirement plan?

Closed funds are open to Vanguard Flagship members (over $1M in Vanguard assets) or at least the used to be as I haven't tried to open a closed Vanguard fund lately.

I believe the closed funds are Primecap, Primecap Core, Dividend Growth & Capital Opportunity.

bill
by billfromct
Tue Dec 11, 2018 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard TIRA Timing Question
Replies: 3
Views: 164

Re: Vanguard TIRA Timing Question

The 2019 IRA maximum contributions is $6,000 & $7,000 for age 50 & older.

bill
by billfromct
Mon Dec 10, 2018 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Employer's Response: 401K Choices
Replies: 26
Views: 1983

Re: EMPLOYER'S RESPONSE: 401K Choices

The American Century website shows a .92% net ER for the One Choice 2050 fund.

What is the the ER for your 401k American Century One Choice funds?

bill
by billfromct
Mon Dec 10, 2018 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard order fill
Replies: 12
Views: 909

Re: Vanguard order fill

What do mean by "placed an order"?

Did you transfer money from your Vanguard MM fund into the Vanguard Total Stock Market Fund or did you pull money from your checking account into the Vanguard Total Stock Market Fund?

bill
by billfromct
Sun Dec 09, 2018 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for older and younger person saving for retirement?
Replies: 31
Views: 2419

Re: Advice for older and younger person saving for retirement?

A couple of things: -your mother's full retirement age for SS will be between 66 & 67 -your mother can collect a reduced SS survivor benefit starting at age 60; she will get more for every year she waits until her SS full retirement age -SS benefits will be reduced by $1 for every $2 of earned incom...
by billfromct
Sun Dec 09, 2018 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall predicament
Replies: 20
Views: 2547

Re: Windfall predicament

It would definitely be to your advantage to open a 529 for qualified college expenses.

Compounding is the same whether in large chunks of money or smaller chunks of money.

Besides the tax free growth aspects of the 529 you also have the tax free rebalancing ability.

bill
by billfromct
Fri Dec 07, 2018 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: Lump Sum in 529 plan
Replies: 10
Views: 809

Re: Lump Sum in 529 plan

An individual can contribute up to $75,000 worth of gifts (5 years x $15,000) into a 529 plan in a lump sum as long as no other gifts are made to that person for the 5 years. Two parents can contribute up to $150,000 into a 529 plan in a lump sum without having to submit Form 709 to the IRS. Google ...
by billfromct
Thu Dec 06, 2018 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in 2 weeks, Traditional 401k
Replies: 99
Views: 6883

Re: Retiring in 2 weeks, Traditional 401k

Your mom should get on to Obamacare. It will probably be less expensive then Cobra. Also a general rule of thumb is to take 4% from one's retirement accounts. So with about $300k in a 401k or rollover IRA, $12k/year of IRA distributions should make his retirement savings last into his 90s. Taking ou...
by billfromct
Thu Dec 06, 2018 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in 2 weeks, Traditional 401k
Replies: 99
Views: 6883

Re: Retiring in 2 weeks, Traditional 401k

Can your father work longer? His full retirement age for SS is probably between 66 & 67. If he takes SS before his full retirement age, his SS payment will be reduced. If he takes SS after his full retirement age, his monthly payment will be increased by about 8% per year if he waits longer. SS is i...
by billfromct
Wed Dec 05, 2018 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off debt or maxing Roth IRA as a resident
Replies: 14
Views: 986

Re: Paying off debt or maxing Roth IRA as a resident

I agree with the others & you should fund the Roth IRA to build some tax diversity in your retirement accounts; especially while you are young & in probably the lowest tax bracket of your career. If you have the ability to fund a Roth 403b or Roth 401k, do that as well now that you are in a low tax ...
by billfromct
Wed Dec 05, 2018 6:22 pm
Forum: Investing - Help with Personal Investments
Topic: Hypothetical Roth IRA question
Replies: 10
Views: 423

Re: Hypothetical Roth IRA question

If you are going to do the back door Roth IRA & want to DCA, just open a Money Market Fund in your Roth IRA & fund the Roth IRA MM fund via a back door Roth IRA contribution. Then transfer $500 each month from the Roth IRA MM fund to whatever Roth IRA fund you want. This way you will only have to do...
by billfromct
Tue Dec 04, 2018 1:46 am
Forum: Investing - Help with Personal Investments
Topic: Need advice in choosing Money Market funds
Replies: 9
Views: 928

Re: Need advice in choosing Money Market funds

For 2017, the Vanguard Federal MM Fund had 69.86% of the "income from U.S. government obligations" while the Vanguard Treasury MM Fund had 100% of "income from U.S. government obligations". That's the % of interest you wouldn't have to pay CA state income tax on. The Prime MM Fund had 20.40% of "int...
by billfromct
Sun Dec 02, 2018 1:36 am
Forum: Investing - Help with Personal Investments
Topic: My kid's retirement
Replies: 49
Views: 3385

Re: My kid's retirement

I agree with others & would fund a 529 first. If you want to start a retirement fund for your new born child, one thing you could do is open a variable annuity for the child at birth. Variable annuities are the best way to turn long term capital gains (normally 15% tax rate) to ordinary income (prob...
by billfromct
Wed Nov 28, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Are CDs taxed each year or at maturity?
Replies: 15
Views: 1990

Re: Are CDs taxed each year or at maturity?

You'll get a 1099 each year based on the interest earned for that year. Edit:. My only CD experience is with my credit union. The CDs compound interest daily & interest is credited monthly regardless of the maturity. I guess each bank or credit union has their own interest payment & account creditin...
by billfromct
Mon Nov 26, 2018 11:56 pm
Forum: Investing - Theory, News & General
Topic: A bubble of corporate debt.
Replies: 31
Views: 3080

Re: A bubble of corporate debt.

TVD, what are "institutional grade bonds"? Bonds that are only bought by financial institutions?

I haven't heard that term before.

bill
by billfromct
Mon Nov 26, 2018 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Moving 25 individual stocks into a few Fidelity index funds
Replies: 17
Views: 759

Re: Moving 25 individual stocks into a few Fidelity index funds

I believe the Total Stock Market Index is about 18% mid-cap & 9% small cap; 27% total mid/small cap allocation.

That's a little more than the op's proposed 20% extended market (mid/small cap) exposure.

bill
by billfromct
Sun Nov 25, 2018 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Using unexpected income -- planning retirement and kids college
Replies: 12
Views: 1170

Re: Using unexpected income -- planning retirement and kids college

You say, "What I'm hearing from folks is that I should forget about converting and/or back dooring to Roth. Just invest the max in traditional IRAs for me & my wife." Because of your income & you contribute to a retirement plan at work, it appears that can't contribute to a tax deductible IRA. If yo...
by billfromct
Sun Nov 25, 2018 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Starting a 529 for my adopted children
Replies: 7
Views: 631

Re: Starting a 529 for my adopted children

It looks like CA does not offer a state tax deduction for 529 contributions, but CO allows unlimited tax deductions for 529 contributions. Can you wait until you move to CO to make set up the CO 529 plans so you can take advantage of the CO tax deduction? I'm sure you will have some sort of income (...
by billfromct
Wed Nov 21, 2018 12:03 am
Forum: Investing - Theory, News & General
Topic: Vanguard lowering Admiral level to $3,000?
Replies: 224
Views: 17168

Re: Vanguard lowering Admiral level to $3,000?

And I just finished memorizing all the Investor class Vanguard index ticker symbols!

Now I have to start memorizing all the Admiral index ticker symbols.

bill
by billfromct
Tue Nov 20, 2018 11:27 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's new 401k options
Replies: 10
Views: 726

Re: Wife's new 401k options

You didn't mention anything about having Roth IRAs.

You may want to fund Roth IRAs for both of you to build some tax diversity in your retirement accounts. You can put in $6,500 each for 2018 & $7,000 each in 2019.

bill
by billfromct
Tue Nov 20, 2018 1:13 am
Forum: Investing - Help with Personal Investments
Topic: help with Asset Allocation
Replies: 4
Views: 477

Re: help with Asset Allocation

If your gross salary is $200k & both of you max out your 2018 401k ($37k) , your MAGI would be about $163k ($200k-$37k) plus any investment income. The ability to contribute to a regular Roth IRA starts to phase out when your modified adjustible gross income (MAGI) hits $189k (married filing jointly...
by billfromct
Sat Nov 17, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Are VG TR 2020 and TR 2025 substantially identical?
Replies: 5
Views: 396

Re: Are VG TR 2020 and TR 2025 substantially identical?

My understanding is that each TR Fund gradually moves to a 50%/50% stock/bond allocation at the Target year.

Then the allocation gradually moves to a 30% stock/70% bond allocation 7 years after the target year.

bill
by billfromct
Sat Nov 17, 2018 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: New FA offering to pay annuity surrender fee
Replies: 18
Views: 1114

Re: New FA offering to pay annuity surrender fee

My understanding is that that the variable annuity surrender fee decrease over time; starting out with a 7% fee in year one going down to 1% in year 7. I believe that surrender fees do not apply after 7 years. You may want to check each annuity to see you what the surrender fee would be. I think he ...
by billfromct
Fri Nov 16, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Fresh graduate seeking guidance
Replies: 8
Views: 719

Re: Fresh graduate seeking guidance

So would you have to contribute 24% of your salary to get the full 6% (25% employer match x 24% contribution=6%) employer match? If your salary was $100k & you contributed 24% of your salary ($24k), the company would match $6k (25% of $24k) which would equal 6% ($6k of $100k) of your compensation. T...
by billfromct
Fri Nov 16, 2018 12:13 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - Maximum Contribution vs. Maximum Deductible Contribution
Replies: 9
Views: 386

Re: Solo 401k - Maximum Contribution vs. Maximum Deductible Contribution

I was responding to what southerndoc posted.

"Your employee contribution can be up to100% of your income up to $18,000 ($24,000 if >50 years of age)."

I just wanted to list the correct 401k contribution limits but didn't want to look like I was nitpicking southerndoc's post.

bill
by billfromct
Thu Nov 15, 2018 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - Maximum Contribution vs. Maximum Deductible Contribution
Replies: 9
Views: 386

Re: Solo 401k - Maximum Contribution vs. Maximum Deductible Contribution

The maximum employee contribution for a Solo 401k is $18,500 ($24,500 if 50 & over) for 2018 & $19,000 ($25,000 if 50 & over) for 2019; just like the limits of a company sponsored 401k.

bill
by billfromct
Wed Nov 14, 2018 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Does my investment selection make sense?
Replies: 4
Views: 586

Re: Does my investment selection make sense?

The Vanguard Target Retirement Funds move to a 50%/50%, stock/bond allocation at the Target year then move to a 30%/70%, stock/bond allocation 7 years after the target year.

You may want to keep that in mind to understand how your stock/bond allocation will change over the years.

bill
by billfromct
Wed Nov 14, 2018 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Interested in filing my own taxes
Replies: 9
Views: 1051

Re: Interested in filing my own taxes

I used TurboTax for many years, then when they got expensive, moved to TaxAct.

I have seen many good things about FreeTaxUSA & will try FreeTaxUSA this year. The Federal tax return is free & the state return is $12.95; much less expensive than the others.

bill
by billfromct
Wed Nov 14, 2018 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual nightmare - help needed
Replies: 55
Views: 5120

Re: Northwestern Mutual nightmare - help needed

I'm no expert on annuities, but I believe the surrender charges are a sliding scale that decreases each year. If you had the annuity for 1 year, the surrender charge would be 7% decreasingly to 1% at 7 years & 0% after 7 years. It may be worth the surrender charge to just move it to a Vanguard varia...
by billfromct
Tue Nov 13, 2018 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Oops! Edward Jones tops Vanguard in customer survey
Replies: 50
Views: 5296

Re: Oops! Edward Jones tops Vanguard in customer survey

It's a Philadelphia newspaper!

They need to headline a local company (Malvern, Vanguard's headquarters, is about 35 miles northwest of Philadelphia) to sell papers.

bill
by billfromct
Tue Nov 13, 2018 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Ladder vs. Vanguard Bonds
Replies: 3
Views: 338

Re: Bond Ladder vs. Vanguard Bonds

I would ask him how much commission/fees will he make off your "bond ladder".

bill
by billfromct
Tue Nov 13, 2018 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds vs. Savings Account
Replies: 28
Views: 1684

Re: Bonds vs. Savings Account

Of course. A lot of people, including me, base their fixed income allocation on the timing of when they will need the money. I have the fixed income allocation in my IRA in money market, short term (2.5 years duration) & intermediate term bonds (5-6 years duration). I will start RMDs next year. The ...
by billfromct
Tue Nov 13, 2018 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Won a lawsuit after a wrongful death in the family. How to invest?
Replies: 18
Views: 3330

Re: Won a lawsuit after a wrongful death in the family. How to invest?

FYI, the Vanguard Prime Money Market Fund currently pays 2.23% interest & should increase roughly the same amount as the Federal Reserve raises interest rates over the next couple of years. Speculation has it that the Fed will raise short term interest rates .50% to .75% over next 1.5 years. I would...
by billfromct
Mon Nov 12, 2018 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring stocks from Computershare?
Replies: 7
Views: 504

Re: Transferring stocks from Computershare?

Good idea to move out of Computershare. I sold some Exxon & Chevron (originally Texaco) stock which I started as a DRIP (dividend reinvestment plan) back in the early 1990s. The Computershare fees were about $70 to sell each account. I was going to transfer to Vanguard, but I wanted to sell both hol...
by billfromct
Sun Nov 11, 2018 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: New in the US: retirement planning
Replies: 4
Views: 714

Re: New in the US: retirement planning

I don't think you will be able to put 100% of your gross salary into your employment retirement plan. I don't know the government % maximum but it will probably be less than 100% because Social Security, Medicare & health insurance costs will have to be deducted from your pay check. The company I wo...
by billfromct
Sun Nov 11, 2018 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA
Replies: 7
Views: 551

Re: Help with Roth IRA

It is very easy to move from Fidelity to Vanguard. Vanguard would be able to help you with the movie. I would move the Fidelity Roth IRA assets to cash to make the move. If I was in your position, it would depend on who you would want to handle your investments for the long haul, Fidelity or Vanguar...
by billfromct
Sun Nov 11, 2018 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: 403 B [Assistance to select funds]
Replies: 6
Views: 496

Re: 403 B

You don't say if you are single or married. If you are single, the ability to contribute to a Roth IRA starts to phase out when your modified adjusted gross income (MAGI) hits $120k for 2018. MAGI is basically gross income-403b tax deductible contributions+investment income. It appears that your MAG...
by billfromct
Sun Nov 11, 2018 8:02 am
Forum: Investing - Help with Personal Investments
Topic: 403 B [Assistance to select funds]
Replies: 6
Views: 496

Re: 403 B

You don't give some pertinent information like your age, tax bracket, etc. As has been mentioned, the stock market has been very volatile this year & international stocks have had a down year. If you only had $5,000 or $6,000 to save for retirement & had to make a choice, I would fund a Roth IRA, es...
by billfromct
Sat Nov 10, 2018 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Index Fund Admiral Shares Question
Replies: 25
Views: 2946

Re: Vanguard Index Fund Admiral Shares Question

In order to compare "apples to apples", you have to compare the Vanguard S&P 500 Index to the Vanguard Total Stock Market (TSM) Index for the same time frame. The TSM Index (Investor shares) started in April 1992. The Portfolio Visualizer allows you to compare mutual funds from January 1 of a partic...
by billfromct
Thu Nov 08, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Retirement [what moves to make to reduce risk]
Replies: 6
Views: 941

Re: Retirement [what moves to make to reduce risk]

I will start RMDs next year & set up my IRA fixed income allocation at about 10 years of my last year's working salary. This fixed income allocation equals 11 or 12 years of RMDs. My total IRA allocation is about 62%/38% stocks/fixed income. My IRA fixed income allocation is: *Money Market:. 40% *ST...
by billfromct
Tue Nov 06, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio for 87yo widowed Mom.
Replies: 13
Views: 1025

Re: Portfolio for 87yo widowed Mom.

I would suggest 40% of her IRA be in the Vanguard ST Investment Grade Bond Fund (3.29% SEC yield, average duration 2.7 years); rebalance every year or so. I would also have any dividend or cap gains distributions sent to the ST Bond Fund & not be reinvested back into the stock fund; a little more se...
by billfromct
Tue Nov 06, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Ok to remove collision coverage?
Replies: 13
Views: 1048

Re: Ok to remove collision coverage?

It's my understanding that comprehensive insurance covers things not covered by collision like fire, glass breakage, vandalism, hitting a deer, falling trees, etc. I hit a deer a few years ago & it was comprehensive that covered the damage, not collision insurance. I think that it is recommended tha...
by billfromct
Tue Nov 06, 2018 1:58 am
Forum: Investing - Help with Personal Investments
Topic: Save tuition money or fund 401(k)?
Replies: 10
Views: 908

Re: Save tuition money or fund 401(k)?

I would fund the retirement account because grad school may not happen. My son talked about applying to grad school a few years ago so we sold a couple of his mutual funds to raise cash in a time of a very good stock market. He did not start his 401k because he would only fund it for about 6 months ...
by billfromct
Tue Nov 06, 2018 1:31 am
Forum: Investing - Theory, News & General
Topic: Is there CD funds in VG to be used for IRA's?
Replies: 23
Views: 2287

Re: Is there CD funds in VG to be used for IRA's?

If the CDs were in an IRA, there would not be any tax implications.

Vanguard does not have any "CD funds", but I'm sure you can purchase CDs inside your IRA.

bill
by billfromct
Mon Nov 05, 2018 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Should I move from TRP to Vanguard?
Replies: 9
Views: 702

Re: Should I move from TRP to Vanguard?

T Rowe Price expense ratios are generally pretty high. The TRP Blue Chip Growth has an expense ratio of .70%. Of course the expense ratio is already included in the return data. It's just your personal decision where you want to be in the long run. My first mutual fund company was T Rowe Price. I mo...
by billfromct
Mon Nov 05, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: re: current treasuries
Replies: 3
Views: 341

Re: re: current treasuries

Interest from Federal government securities are taxable at the Federal level but tax free at the state & local level. Interest from state & municipal bonds are Federal tax free and, I believe, tax free at the state & local level if from your state or municipality. There is no advantage of having Tre...
by billfromct
Fri Nov 02, 2018 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: My Grandmother has 80% stocks
Replies: 55
Views: 5642

Re: My Grandmother has 80% stocks

I always get this mixed up.

Is the rule of thumb, the percentage of stocks in your portfolio should equal your age? Or something like that.

bill