Search found 1153 matches

by ryman554
Fri Feb 22, 2019 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Advice on upgrading home in Bay Area
Replies: 11
Views: 1357

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: 1046

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: 13
Views: 884

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: 362

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: 1789

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: 1789

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: 1464

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: 1464

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: 1333

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: 3249

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: 3249

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: 975

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: 3367

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: 3557

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: 13372

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: 6546

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: 3223

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: 24
Views: 1572

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: 24
Views: 1572

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: 667

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: 1540

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: 8893

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: 7597

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: 7736

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: 24
Views: 1572

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: 24
Views: 1572

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: 29165

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: 8093

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: 1644

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: 588

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: 903
Views: 234183

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: 1854

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: 2326

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: 1175

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...
by ryman554
Wed Dec 19, 2018 10:41 am
Forum: Personal Investments
Topic: The 4% rule
Replies: 71
Views: 6635

Re: The 4% rule

i am targeting 3% rule. plus pension and SS And I hope you enjoy the time spent at work oversaving. There is very little in this world that we cannot buy or get back. Time is one of them. We can argue the details of the 4% rule, as has been done almost every week here on these boards, but as a gene...
by ryman554
Wed Dec 19, 2018 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax
Replies: 398
Views: 56592

Re: Fidelity free Turbotax

The basic version includes the 5 federal for free, but does charge for state. You have to get at least the deluxe to get the free state filing. As for the discount, there seems to be a long discussion each year as to who is eligible. Not quite. The Deluxe includes includes one free state, i.e. the ...
by ryman554
Tue Dec 18, 2018 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax
Replies: 398
Views: 56592

Re: Fidelity free Turbotax

The basic version includes the 5 federal for free, but does charge for state. You have to get at least the deluxe to get the free state filing. As for the discount, there seems to be a long discussion each year as to who is eligible. Not quite. The Deluxe includes includes one free state, i.e. the ...
by ryman554
Tue Dec 18, 2018 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax
Replies: 398
Views: 56592

Re: Fidelity free Turbotax

Is everyone getting $20 off? I recall last year it was free. That is the norm... some frequent traders and high balance/private client members get offered "free". I'm somewhat surprised that I qualified for "free" this year... I went back under the $1M dividing line due to market losses -- but sinc...
by ryman554
Mon Dec 17, 2018 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Pre-paying mortgage only in early years
Replies: 51
Views: 3580

Re: Pre-paying mortgage only in early years

Prepaying a mortgage is building your wealth. It is more or less equivalent to buying a bond, and for net worth purposes more "more" than "less". I don't see how prepaying a mortgage is building wealth. You are simply transferring one investment (whatever investment the money you use to prepay is c...
by ryman554
Mon Dec 17, 2018 9:21 am
Forum: Personal Investments
Topic: Year end distributions question
Replies: 6
Views: 728

Re: Year end distributions question

Just to clarify. Several funds have a record date of 12/17 (today); and a payable date of 12/19. So if one put in an order to purchase a new mutual fund with a record date of 12/17 before 4PM today, would they be purchasing units and then receiving the dividend. Or would they be purchasing units at...
by ryman554
Tue Dec 04, 2018 1:40 pm
Forum: Personal Investments
Topic: Home Down Payment - Where to Save?
Replies: 22
Views: 2120

Re: Home Down Payment - Where to Save?

The OP may or may not be buying a house in the near future. Therefore, the OP should be putting extra money in equities for the long term. When the details of OP's life clarifies to the point where purchasing a house (or have anything else major) is in the immediate future, then the OP should be mov...
by ryman554
Fri Nov 30, 2018 9:38 am
Forum: Personal Investments
Topic: backdoor roth and new limitation?
Replies: 15
Views: 1268

Re: backdoor roth and new limitation?

Could you explain what would prevent someone from doing a "mega backdoor Roth" we are doing our first one this year and I didn't think there was anything that could prevent it. The total amount of contributions (employee elective, employer + "your after-tax mega back door thingy" can't exceed somet...
by ryman554
Tue Nov 27, 2018 10:56 am
Forum: Personal Investments
Topic: Good newsletters for speculative investments?
Replies: 14
Views: 963

Re: Good newsletters for speculative investments?

Like I am sure all of you I get intrigued every week by at least a couple of ads that promise insights to take advantage of new trends (eg cannabis legalization), legislation (eg prescription drug reform), etc. Invariably I am pulled into a nauseatingly long-winded sales pitch that concludes after ...
by ryman554
Mon Nov 26, 2018 12:53 pm
Forum: Personal Investments
Topic: Can I over-contribute to 401k plan between 2 employers in anticipation of HCE refund from old employer?
Replies: 15
Views: 814

Re: Can I over-contribute to 401k plan between 2 employers in anticipation of HCE refund from old employer?

I over contributed one year due to job change. What happened was I had to pay taxes when filing my tax return. However, even if you've paid taxes, the 401k money still stays in before tax bucket and there's no way the plan admin will move it to after tax for you, and down the road you still have to...
by ryman554
Mon Nov 26, 2018 9:22 am
Forum: Personal Investments
Topic: Can I over-contribute to 401k plan between 2 employers in anticipation of HCE refund from old employer?
Replies: 15
Views: 814

Re: Can I over-contribute to 401k plan between 2 employers in anticipation of HCE refund from old employer?

I over contributed one year due to job change. What happened was I had to pay taxes when filing my tax return. However, even if you've paid taxes, the 401k money still stays in before tax bucket and there's no way the plan admin will move it to after tax for you, and down the road you still have to...
by ryman554
Mon Nov 26, 2018 9:18 am
Forum: Personal Investments
Topic: Can I over-contribute to 401k plan between 2 employers in anticipation of HCE refund from old employer?
Replies: 15
Views: 814

Re: Can I over-contribute to 401k plan between 2 employers in anticipation of HCE refund from old employer?

I contributed 16,334.84 with a prior employer as of today's date. Tomorrow I start with a new employer. They have asked me for my prior year contributions so they can set my maximum contribution limit. I know I will get a refund check from the prior year employer anyways, as I expect the HCE limit ...
by ryman554
Mon Nov 26, 2018 9:12 am
Forum: Personal Investments
Topic: Can I over-contribute to 401k plan between 2 employers in anticipation of HCE refund from old employer?
Replies: 15
Views: 814

Re: Can I over-contribute to 401k plan between 2 employers in anticipation of HCE refund from old employer?

One idea is you could try to roll over your old employer's 401k plan to an IRA or the new employer's 401k before they do the HCE refund. Then just contribute to the IRS max with the new employer. Sometimes they'd be willing to overnight the rollover check/etc for the cost of overnight service. For ...
by ryman554
Mon Nov 26, 2018 8:57 am
Forum: Personal Investments
Topic: Inheritance and Financial Advisor (Advice Please!)
Replies: 16
Views: 2063

Re: Inheritance and Financial Advisor (Advice Please!)

Just called Jeff Nat and I am wrong about the 10% early withdrawal penalty -- there is none. Only taxes would be on the gains and they would be taxed as ordinary income. I was also incorrect about my cost basis which is 400k, not 540k -- current value of account is ~610k. With this in mind my plan ...
by ryman554
Tue Nov 20, 2018 12:04 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 930
Views: 73778

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

EDIT: Fidelity rep said to print the form outside the wizard and check the brokerage transfer option. We'll see. *** I'm trying to transfer an HSA account currently at my BCBS provider, Acclaris, to a new individual Fidelity account. When I fill in the Acclaris information on the transfer screens, ...
by ryman554
Fri Nov 16, 2018 10:23 am
Forum: Personal Finance (Not Investing)
Topic: How Long / Hard To Become a Millionaire on Under $100k Income
Replies: 133
Views: 12681

Re: How Long / Hard To Become a Millionaire on Under $100k Income

Becoming a millionaire by 40 can be done by saving $60 a day from age 21 through 40 with an 8% return on investments. How hard it is to save $60 a day depends greatly on how close to the $100k/yr mark you get. Yes, that would be tough. $60 a day is $1,800 a month. Really, that's $22k/year. That is ...