Search found 1169 matches

by ryman554
Sat Apr 20, 2019 2:01 am
Forum: Investing - Theory, News & General
Topic: Stocks will return about 4% annually over the next decade or so rather than the 10% average annual returns - John Bogle
Replies: 85
Views: 10848

Re: Stocks will return about 4% annually over the next decade or so rather than the 10% average annual returns - John Bo

I guess the point is if there's a high likelihood that the next decade is going to be 4% returns or less should you look at alternatives such as real estate etc. or pay off mortgage instead? Also lower returns are fine if you are going to be working for the next 30 years, but what about newly retir...
by ryman554
Mon Apr 15, 2019 2:41 pm
Forum: Personal Investments
Topic: Buy a house or wait in bay area
Replies: 48
Views: 9635

Re: Buy a house or wait in bay area

I don't know anything about the current Bay area market but being priced out of the market is a consideration Do you work in the real estate industry? Sounds like something an aggressive agent would say. “Buy now or be priced out forever!” I think it’s irresponsible to make this tired comment in th...
by ryman554
Sun Apr 14, 2019 8:36 pm
Forum: Personal Investments
Topic: How much to contribute in Employee Stock Purchase Plan?
Replies: 6
Views: 633

Re: How much to contribute in Employee Stock Purchase Plan?

What percentage of your income is available to contribute after tax to the ESPP and still be comfortable able to meet your household expenses? I would base it on that. If the number ends up being 5%, 10%, 15% or some number between - so be it. You already have 11% pre-tax going to the 401k. What pe...
by ryman554
Fri Apr 12, 2019 8:42 am
Forum: Personal Investments
Topic: Theory: NOW is the Best Time for Total World Stock
Replies: 126
Views: 14200

Re: Theory: NOW is the Best Time for Total World Stock

From 1980s to now, lot of US companies have become global. Also reverse is true. By owning stock in large US companies, you are already being exposed to global markets. From the 1900s to today, a lot of companies based in California become nationwide, so the folks in NYC are being exposed to the na...
by ryman554
Fri Apr 05, 2019 9:39 am
Forum: Personal Investments
Topic: Fidelity 401K Small Cap/Mid Cap/500 Index Fund Allocations
Replies: 6
Views: 612

Re: Fidelity 401K Small Cap/Mid Cap/500 Index Fund Allocations

Our company recently changed their 401K company to Fidelity. As an avid indexer, I quickly searched for the index funds and found three: Fidelity Small Cap Index Fund Fidelity Medium Cap Index Fund Fidelity 500 Index Fund I'm confused about how I should allocate between these three. The only thing ...
by ryman554
Fri Apr 05, 2019 9:34 am
Forum: Personal Investments
Topic: Recharacterization impact on pro rata rule
Replies: 6
Views: 261

Re: Recharacterization impact on pro rata rule

Hello, as married filing jointly, we cannot deduct TIRA contributions due to income so I plan to do nondeductible contributions then convert to ROTH after a week or so. I have rollover IRA from previous employer’s 401k (some in Vanguard, Some moved to Betterment). I plan to roll all of this to my c...
by ryman554
Fri Apr 05, 2019 9:22 am
Forum: Personal Investments
Topic: Home Sale-where to park proceeds?
Replies: 8
Views: 715

Re: Home Sale-where to park proceeds?

They don’t need the money in the short term at all. Their current practice is to sell shares intermittently from their target fund to refill their bank account. Is this the best practice for them? In that case, yes, they should simply reinvest these funds in their existing Target Date fund, and wit...
by ryman554
Thu Mar 28, 2019 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Income Jump, Options To Resolve Roth Issues
Replies: 7
Views: 843

Re: Income Jump, Options To Resolve Roth Issues

Thank you retiredjg and Jack. I called VG (experienced excellent customer service, FWIW) and it sounds like there's no reason to act now if I decide to do the backdoor option. that is incorrect. There is every reason to act now to do the backdoor -- if you think markets are going to go up. After do...
by ryman554
Sun Mar 17, 2019 3:27 pm
Forum: Personal Investments
Topic: Carry Over Losses - Which shares to sell?
Replies: 6
Views: 384

Re: Carry Over Losses - Which shares to sell?

I want to keep my carryover losses for the long haul because in retirement I use them to make sure I don't pay taxes and get increased essentially low-,no-tax Roth conversions. So if I need $10,000 to pay expense, I always sell something with the least amount of gains that uses up the least amount ...
by ryman554
Tue Mar 12, 2019 8:27 am
Forum: Personal Investments
Topic: What is best to sell - RSU (at vest), RSU (at gain), ESPP...
Replies: 10
Views: 778

Re: What is best to sell - RSU (at vest), RSU (at gain), ESPP...

If I need to sell stocks to get a certain $ amount - what is the best one to sell among these options? - RSU (At vest) - RSU (Long term gain) - RSU (At loss as compared to vest) - ESPP (Long term gain) - ESPP (At loss compared to vest) Additional info - LTCG - 20%, Federal tax - 35%, State tax - 12...
by ryman554
Fri Mar 08, 2019 10:30 am
Forum: Personal Finance (Not Investing)
Topic: How to correct form 8606?
Replies: 21
Views: 1528

Re: How to correct form 8606?

Oh wow, didn't realize that box was there, so great I'll just fix it, X that box, and send it after all tax refunds/payments are done. What is my actual deadline to fix the error, 3 years? Good to know that they mail a letter confirming an update. You have time. Send it in when the IRS is not super...
by ryman554
Thu Mar 07, 2019 10:48 am
Forum: Personal Finance (Not Investing)
Topic: How to correct form 8606?
Replies: 21
Views: 1528

Re: How to correct form 8606?

Epsilon Delta wrote:
Wed Mar 06, 2019 12:20 pm
ryman554 wrote:
Wed Mar 06, 2019 10:50 am
Definitive answer:
What is your authority for this "Definitive answer".
Match game, circa 1974.
by ryman554
Thu Mar 07, 2019 10:47 am
Forum: Personal Finance (Not Investing)
Topic: How to correct form 8606?
Replies: 21
Views: 1528

Re: How to correct form 8606?

So I can just send in an updated 8606 and that's it? the IRS would know that it is a revised version? At the top section of the form next to the City line there is box which states "If this is an amended return, check here". How do they knew if it is a revised return for a year before 2016? I must ...
by ryman554
Wed Mar 06, 2019 11:01 am
Forum: Personal Finance (Not Investing)
Topic: SWR As An After Tax Function
Replies: 21
Views: 1165

Re: SWR As An After Tax Function

Yes, SWR includes taxes. Others have said it before. I disagree that is it difficult to calculate or predict what taxes may exist for the typical retiree. Spending from a roth IRA aren't taxed. (usually) Spending from a tIRA are taxed just like income. So go look at the tax tables and take a guess. ...
by ryman554
Wed Mar 06, 2019 10:50 am
Forum: Personal Finance (Not Investing)
Topic: How to correct form 8606?
Replies: 21
Views: 1528

Re: How to correct form 8606?

Definitive answer: If you need to change numbers on the 8606, then you need to create a new 8606 for each year that will change. Hopefully, that is only one year, but it may be multiples of years if you have to report basis and your basis changed. If, when changing your 8606, you find that the taxab...
by ryman554
Thu Feb 28, 2019 10:42 am
Forum: Investing - Theory, News & General
Topic: When do you notice the compounding at work?
Replies: 118
Views: 22053

Re: When do you notice the compounding at work?

Probably when your regular daily fluctuations are equivalent to your monthly contribution... That happens at about $1M or so Before then, you are on an upward trajectory no matter the return of the market since your new money (for me, in 2009!) eclipses any downturn. This past winter correction, I c...
by ryman554
Fri Feb 22, 2019 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Advice on upgrading home in Bay Area
Replies: 12
Views: 1638

Re: Advice on upgrading home in Bay Area

Yes, 20% - and I agree with you that it's too much of your portfolio tied up in Bay Area real estate. Sell, pay the $20k in taxes, and invest the proceeds. I would never be a landlord in California... Don't forget the ~10% state as well..... CA treats capital gains as income. And I would still sell.
by ryman554
Thu Feb 21, 2019 9:59 am
Forum: Personal Finance (Not Investing)
Topic: FreeTaxUSA forces me to deduct tIRA contribution--does it matter?
Replies: 18
Views: 1083

Re: FreeTaxUSA forces me to deduct tIRA contribution--does it matter?

So why are you trying to backdoor it when you can do it directly? Our income was less than expected. I already contributed to the tIRA and converted. can't you recharacterize instead? <oh, edit, I'm stupid, I didn't see where you said you already converted. Yup, can't do anything about it now> The ...
by ryman554
Mon Feb 18, 2019 9:33 am
Forum: Personal Investments
Topic: Oregon 529 vs. Vanguard 529
Replies: 15
Views: 1163

Re: Oregon 529 vs. Vanguard 529

Remember that the state tax deduction is only one time on the contribution. You can pay the expense ratio on the funds for up to 18 or 20 times depending on the age of the child when you begin the 529 And when the child is 18 you will be paying a higher ER on $25,000 portfolios because you got a fe...
by ryman554
Fri Feb 15, 2019 10:29 am
Forum: Personal Investments
Topic: Paychex 401k
Replies: 3
Views: 374

Re: Paychex 401k

Thanks! Yeah, it's a crummy portal, too. Or perhaps my company has not paid enough to unlock the nice portal. Whatever you do, don't sign up to their investment advisory services. Just pick a low cost fund that you hopefully have and don't be alarmed at the custodian fees being removed every month.
by ryman554
Thu Feb 14, 2019 11:17 am
Forum: Personal Investments
Topic: Inheritance strategy...
Replies: 12
Views: 1811

Re: Inheritance strategy...

I didn't want to post too many details, but in essence our emergency fund represents pretty bare bones and makes some assumptions re: delaying certain things (like our property tax escrow) and foregoing preschool. Our PITI is $4100 (of which about $2500/mo is our taxes and insurance -- yes, those a...
by ryman554
Thu Feb 14, 2019 9:33 am
Forum: Personal Investments
Topic: Inheritance strategy...
Replies: 12
Views: 1811

Re: Inheritance strategy...

Long time lurker, first time poster. Hi all, could use some advice. I'm set to inherit a small sum of money (about $60K) and need advice on strategy. I am 33, husband is 36. We have a 3 year old in preschool. We have a HHI of $230K but are fairly cash strapped right now with daycare and mortgage. N...
by ryman554
Wed Feb 13, 2019 12:43 pm
Forum: Personal Investments
Topic: still contribute to IRA even if it is not pretax?
Replies: 16
Views: 1500

Re: still contribute to IRA even if it is not pretax?

don't do it is my advice. I recently posted in the forum almost the opposite question, how to unwind such a position I had taken when I was younger and thought the non-deductible IRA was the right way to save more money. The problem you'll have down the road is the same one you face now contemplati...
by ryman554
Tue Feb 12, 2019 10:34 am
Forum: Personal Investments
Topic: still contribute to IRA even if it is not pretax?
Replies: 16
Views: 1500

Re: still contribute to IRA even if it is not pretax?

Can you roll over your IRA into your 401k? That would allow you to do the backdoor Roth without paying taxes. That said, if your 401 has high fees, it may not be a good idea. Then again, what are the fees you're paying "your broker" to manage your investments (including, I assume, your Roth)? great...
by ryman554
Mon Feb 11, 2019 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Taxable refunds of state and local taxes - electing standard deduction to avoid?
Replies: 16
Views: 1367

Re: Taxable refunds of state and local taxes - electing standard deduction to avoid?

Anyone paying property taxes in the range of roughly $7,000 - 9,000 should take a look at this option if they are itemizing. There are a number of variables involved in calculating the sales tax deduction figure (income, family size, state of residence), but it's just a matter of looking up the fig...
by ryman554
Fri Feb 08, 2019 9:21 am
Forum: Personal Investments
Topic: Is ESPP worth the hassle?
Replies: 65
Views: 3296

Re: Is ESPP worth the hassle?

I do believe that the ESPP is a good deal for most people. Our ESPP only offered a 5 percent discount and we could only purchase a small amount. I tried to avoid short term capital gains, So for me, our program was not that great. I worked for a very stable utility company but I never believed in h...
by ryman554
Fri Feb 08, 2019 9:16 am
Forum: Personal Investments
Topic: Is ESPP worth the hassle?
Replies: 65
Views: 3296

Re: Is ESPP worth the hassle?

If you don't reasonably believe in your company but just merely to capture the $2000 before tax yearly, I would say it doesn't worth the trouble. How much do people make where $2000 is not worth the trouble? Even making $200k, $2k is worth the trouble, especially since the trouble isn't that much t...
by ryman554
Thu Feb 07, 2019 11:00 am
Forum: Personal Finance (Not Investing)
Topic: 8606 trigger audit?
Replies: 8
Views: 986

Re: 8606 trigger audit?

Hi there, I'm wanting to do a backdoor Roth for 2018. I've already filed so this means I would just mail in a 8606 to some address. My question is would this by any chance get me flagged or audited? Like the action of mailing the form in when I electronically filed? I messed up my roth ira contribu...
by ryman554
Sat Feb 02, 2019 3:12 pm
Forum: Investing - Theory, News & General
Topic: The "never sell" method for staying the course
Replies: 28
Views: 3492

Re: The "never sell" method for staying the course

That's a very good solution. Unfortunately like many, I have many accounts and most of them have no good funds like that. The only decent fund in my 401k is the S&P500 fund, for example. Where are your other accounts? Move your old workplace accounts to IRAs and consolidate all after tax into one T...
by ryman554
Tue Jan 29, 2019 1:00 pm
Forum: Personal Investments
Topic: "Steelmanning" the case for owning individual stocks
Replies: 53
Views: 3732

Re: "Steelmanning" the case for owning individual stocks

You are trying to create and run your own mutual fund based on "factors". I think you underestimate how much work and cost is involved in tracking whatever index / method you are trying to follow. But that is not my objection: my objection is: why do you think that the quants, with all of their AI c...
by ryman554
Mon Jan 28, 2019 3:05 pm
Forum: Personal Investments
Topic: High Earners Mostly Use Taxable Accounts?
Replies: 167
Views: 13597

Re: High Earners Mostly Use Taxable Accounts?

If you are making $350k you should be saving a lot more than $36k. Pretty much impossible if you live in San Francisco :( Try again, and lumping SF with the bay area in general, and in my case, the south bay. I make (and made) between 50% and 80% of that. And saved $80k+ each year. This includes ta...
by ryman554
Thu Jan 24, 2019 11:14 am
Forum: Investing - Theory, News & General
Topic: Yield difference between total bond and MMF less than 1%
Replies: 94
Views: 6594

Re: Yield difference between total bond and MMF less than 1%

Today the SEC yield on the total bond market fund is 3.18%, and the prime money market fund is 2.47%. The difference in yield is so small that I wonder if it makes much difference which fund your money is in. What are your thoughts? While it's not the right calculation, you're giving up 25% returns...
by ryman554
Thu Jan 24, 2019 11:02 am
Forum: Personal Investments
Topic: Marketwatch - If everyone invested like John Bogle, markets couldn’t work right
Replies: 54
Views: 3422

Re: Marketwatch - If everyone invested like John Bogle, markets couldn’t work right

Moreover, I don't understand why Shiller doesn't cheer all of us clueless indexers staying away from guessing the market? Wouldn't you think that our abstaining and giving more price setting power to the small cadre of highly informed market expert traders would be Shiller's preference? What am I m...
by ryman554
Thu Jan 24, 2019 1:54 am
Forum: Personal Investments
Topic: Back-door Roth with Existing tIRA Balance
Replies: 27
Views: 1787

Re: Back-door Roth with Existing tIRA Balance

My tIRA is not rolled over from a 401k plan. I had opened 2 IRA CDs for two years in BoA and then moved them into VG and VG titles the IRA as "Rollover IRA". does it matter? It may, or it may not. It didn't matter to mine, but mine is not yours. Ask your plan administrator if they accept funds from...
by ryman554
Wed Jan 23, 2019 9:35 am
Forum: Personal Investments
Topic: Back-door Roth with Existing tIRA Balance
Replies: 27
Views: 1787

Re: Back-door Roth with Existing tIRA Balance

4. Remaining balance in tIRA will be $18000 - $7170 = $10,830. I will transfer this amount ($10,830) to my workplace 401k (They accept transfers from rollover IRAs). I don't need to tell them anything about the non deductible portion that I moved to my Roth. I don't need to let them know as I had a...
by ryman554
Tue Jan 22, 2019 10:35 am
Forum: Personal Investments
Topic: Fidelity BrokerageLink in 401k
Replies: 13
Views: 767

Re: Fidelity BrokerageLink in 401k

Just use the fidelity ex-spartan funds.

Low cost. Free. And in a 401(k), what's the advantage of trading ETF vs. mutual fund? What's not to like?

I personally own:
FUAMX
FXAIX
FSMAX
FTIHX
FPADX
by ryman554
Mon Jan 21, 2019 9:28 am
Forum: Personal Investments
Topic: 401k + aftertax 401k -> roth methodology
Replies: 20
Views: 1568

Re: 401k + aftertax 401k -> roth methodology

Since you are planning to leave the after tax money with 401(k) plan custodian/trustee/service provider till the end of 2019, I think, the capital gain on the after tax money will be taxable when you eventually do the rollover into a roth IRA. I have read differing opinions on this. Perhaps, it is ...
by ryman554
Tue Jan 15, 2019 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8969

Re: Getting a Mortgage when You can Pay Cash for a House

Offering a cash offer to a seller has leverage, and in some cases quite a lot. Sometimes they are desperate to move because they can't afford their payments or have personal or occupational reasons for wanting a quick sale. A quick all-cash closing without hindrance from a lender can help close you...
by ryman554
Tue Jan 15, 2019 9:23 am
Forum: Personal Investments
Topic: Why isn't an AA of 75/25 with a SWR 3.75% the standard??
Replies: 64
Views: 7738

Re: Why isn't an AA of 75/25 with a SWR 3.75% the standard??

3.75% is conservative, nearly 28x expenses and that is with zero growth. If bonds yield 3%, equities will have to yield more to entice risk takers. I think you have this backwards. Nothing ever "makes" equities yield more, except for larger corporate profits (and profit sharing!) In fact, I think y...
by ryman554
Thu Jan 10, 2019 10:42 am
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 7843

Re: BHers, what is your Roth IRA %?

There is a much better way to look at it. Currently, I have 44% of my stuff where I have to pay marginal tax rates. This includes 401(k) and tIRAs. Currently, I have 53% of my stuff where I have to pay no tax at all. This includes roth IRAS, HSAs, and basis on my taxable account. Currently, I have 3...
by ryman554
Wed Jan 09, 2019 9:38 am
Forum: Personal Investments
Topic: Back-door Roth with Existing tIRA Balance
Replies: 27
Views: 1787

Re: Back-door Roth with Existing tIRA Balance

Thanks all. Please let me know if I can do the following: 1. Convert all 11.5k to Roth now. Per the following formula, I need to pay taxes on 50% of this amount which is $5.75k in 2019 taxes. Is my assumption correct? TF = 100 * [ C / (C + B)] = 100 * [11500 / 11500 + 11500)] = 100 * .5 = 50% If th...
by ryman554
Wed Jan 09, 2019 9:30 am
Forum: Personal Investments
Topic: Back-door Roth with Existing tIRA Balance
Replies: 27
Views: 1787

Re: Background Roth with Existing tIRA Balance

Can I contribute $6000 towards non deductible IRA into my tIRA account and convert it into Roth immediately (next day) now and then rollover previous balance of $11.5k into 401k after a week? The potential for confusion (and error) is high, why are you in such a hurry to make the non-deductible tIR...
by ryman554
Thu Jan 03, 2019 8:51 am
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 234
Views: 29415

Re: Social Security for Millennials

My very simple calculation focuses on generated income via pension(SS) and income I can safely draw on from my portfolio, using real dollars. To make it even more simple, I assume that, for every year I do not take SS, I must have in "cash" (in this case, TIPS to keep them real). I know my PIA (assu...
by ryman554
Wed Jan 02, 2019 9:24 am
Forum: Investing - Theory, News & General
Topic: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?
Replies: 160
Views: 8392

Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

No.

If I did, I would have 12k of money just laying around doing nothng... who has that? If I sell/buy from taxable, I ether have to pay CG tax or lose my loss due to wash sale rules. Nope.

I wait until I get my bonus some time in March. That's my IRA fund.
by ryman554
Wed Jan 02, 2019 9:15 am
Forum: Personal Investments
Topic: I just started to realize how important it is to manage the finances
Replies: 9
Views: 1665

Re: I just started to realize how important it is to manage the finances

I just started to realize how important it is to manage the finances. Seems that the investigation it is more important than how much you earn. Therefore I registered this forum. Welcome, and I will also add: You will find out that the more you actually manage your finances, the worse results you t...
by ryman554
Wed Jan 02, 2019 9:11 am
Forum: Personal Investments
Topic: Timing of Backdoor Roth Contribution and Avoiding the Pro Rata Rule
Replies: 9
Views: 624

Re: Timing of Backdoor Roth Contribution and Avoiding the Pro Rata Rule

If you are trying to avoid pro-rata taxation, you should wait until the pre-tax TIRA balances have completed their moves into employer 401k accounts. This will save you from having to undo things in the case that the rollovers are not accepted. And one should consider that the conversion step of th...
by ryman554
Sun Dec 30, 2018 12:36 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 906
Views: 241100

Re: What is your Year 2018 networth change?

Back to the topic at hand... NW is around 2.2M, increase of ~10%+ this year. My investment portfolio dropped 1%... but that includes 8-9% contributions this year. So, net investments down 10% this year. Lesson learned: even for a 2 comma portfolio, your contributions still matter. A lot. It can turn...
by ryman554
Sun Dec 30, 2018 12:18 am
Forum: Personal Investments
Topic: Roth conversion. Penalty if withdrawn before 59.5? Suggestions for early retirement.
Replies: 33
Views: 1883

Re: Roth conversion. Penalty if withdrawn before 59.5? Suggestions for early retirement.

Thanks for the help everyone! Did you actually get any help? I just saw a little bit of a disagreement. =) The table cited above is correct. The tl;dr is that you never pay taxes/penalties on money that WENT INTO an IRA (roth, or otherwise) that was already taxed. If you are converting from 401(k) ...
by ryman554
Mon Dec 24, 2018 10:35 pm
Forum: Personal Investments
Topic: Anyone rebalancing?
Replies: 36
Views: 2346

Re: Anyone rebalancing?

My next bolus of cash shows up on Dec 31. I will very likely be rebalancing then, as I almost always do, I may also take the opportunity to TLH from my S&P/extended market tilt into a total market portfolio, but need to re-compute portfolio distributions.
by ryman554
Mon Dec 24, 2018 10:27 pm
Forum: Personal Investments
Topic: Should I hold, rather than sell, tech RSUs in light of downturn?
Replies: 13
Views: 1197

Re: Should I hold, rather than sell, tech RSUs in light of downturn?

Vesting RSU is equivalent to: The company providing you with a bonus and withholding 25%* tax on it and then purchasing a whole number of shares of company stock with the remainder of the bonus. That the bonus is dependent on the price of the company shares is irrelevant, but is what you are focusin...