Search found 65 matches

by ChiefIllini
Sun Nov 17, 2019 2:16 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 1
Views: 286

Portfolio Review

Hi all - Looking for a portfolio review with some guidance on what to do cash deployment and mortgage. Emergency funds: 9-12 months worth of expenses Debt: Mortgage: $360K @ 3.75% (17 years left) Car Loan: $11K @0.9% (2.5 years left) CC: Paid monthly so no debt Tax Filing Status Married filing joint...
by ChiefIllini
Sun Dec 30, 2018 2:21 pm
Forum: Personal Investments
Topic: After Tax 401(k) to Roth IRA
Replies: 21
Views: 1311

Re: After Tax 401(k) to Roth IRA

I believe the pro-rata rule only comes into play if you have any traditional type IRA (TIRA, SEP, SIMPLE, etc) that holds a balance at the end of the year. If you do not have any of these, you should be good to go I believe. Pro-rata rules would only come into play for the "regular" backdoor Roth I...
by ChiefIllini
Sun Dec 30, 2018 1:58 pm
Forum: Personal Investments
Topic: After Tax 401(k) to Roth IRA
Replies: 21
Views: 1311

Re: After Tax 401(k) to Roth IRA

Thank you both...now my mind is at ease! Earnings are minimal (well, not this year!) so I just pay the tax on them each year I do this.

I have no traditional IRA money. I contribute the max to the TIRA and then roll it over to a Roth IRA.

Thanks, again!
by ChiefIllini
Sun Dec 30, 2018 1:33 pm
Forum: Personal Investments
Topic: After Tax 401(k) to Roth IRA
Replies: 21
Views: 1311

After Tax 401(k) to Roth IRA

So, I have doing this for several years but for some reason, I feel like I am doing something I am technically not allowed to do. I contribute 6% of my paycheck to the after-tax portion of my 401(k). This is not a Roth 401(k). I also contribute the max (or somewhat close to the max) of my paycheck t...
by ChiefIllini
Mon May 15, 2017 6:39 am
Forum: Personal Finance (Not Investing)
Topic: Forgot to File 8606
Replies: 3
Views: 1372

Re: Forgot to File 8606

Thanks for the input.

My contributions and conversions all took place in the same years, starting with tax year 2013. Does that affect the basis at all?
by ChiefIllini
Sun May 14, 2017 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Forgot to File 8606
Replies: 3
Views: 1372

Forgot to File 8606

Hey all - I have two issues...Both related to backdoor Roth IRAs My CPA for 2014 and 2015, did not file Form 8606 (I didn't give him the 1099-R for those years, so my fault on that one). I found this by going through old tax forms. Then, in 2015, it was filed incorrectly (had a basis of $5,500 in th...
by ChiefIllini
Wed Nov 23, 2016 2:30 pm
Forum: Personal Investments
Topic: Rollover 401(k)
Replies: 6
Views: 999

Re: Rollover 401(k)

My wife switched jobs late last year and we need to rollover her old 401(k) to a new one. Why do you need to do that? The old 401(k) has somewhat higher fees and for ease of managing, I want it in one account. If I were to do the Traditional IRA route, how would that affect the backdoor Roth IRA fo...
by ChiefIllini
Tue Nov 22, 2016 10:36 pm
Forum: Personal Investments
Topic: Rollover 401(k)
Replies: 6
Views: 999

Re: Rollover 401(k)

Thanks...not quite sure I follow. Why delay the rollover? So, if I did a rollover of the 401(k) to a traditional IRA, I would not be able to do a clean backdoor roth IRA because I would have a balance in the traditional IRA unless I rolled over the 401(k) to a roth IRA? The new 401(k) is pretty good...
by ChiefIllini
Tue Nov 22, 2016 8:42 pm
Forum: Personal Investments
Topic: Rollover 401(k)
Replies: 6
Views: 999

Rollover 401(k)

Hello all, My wife switched jobs late last year and we need to rollover her old 401(k) to a new one. We also got married this year and have not yet contributed to our IRAs (Roth/Traditional) - Actually, I did make one contribution this year by mistake...Now that we are married, we need to do a backd...
by ChiefIllini
Tue Nov 24, 2015 1:27 am
Forum: Personal Finance (Not Investing)
Topic: Excess Social Security Contribution
Replies: 6
Views: 935

Re: Excess Social Security Contribution

The W-2s have the same EIN number...slightly difference address though.

The company is reviewing this again...although, it is really just simple math and I can't for the life of me figure our why they don't see that I contributed more taxes!
by ChiefIllini
Mon Nov 23, 2015 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Social Security Contribution
Replies: 6
Views: 935

Excess Social Security Contribution

Last year, I transferred locations within my company but that apparently reset the social security withheld. Thus, I was still contributing social security tax above the $117K threshold. I had two W-2's last year...one for each location I worked. My employer is denying my request for a refund of the...
by ChiefIllini
Sat May 17, 2014 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Would you retire [to a tropical island with kids]?
Replies: 121
Views: 13853

Re: Living like rich people for 1k a month

Langkawi wrote:
anonforthis wrote:
ChiefIllini wrote: Why so secretive?
Nha Trang, Vietnam.
No.
Well, Yes and No. Anyone with an ounce of common sense knows that you are a Pinay. However, most of the photos you stole were from Vietnam. Only the beach picture is from Boracay. Google told me this.
Exactly.
by ChiefIllini
Sat May 17, 2014 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Would you retire [to a tropical island with kids]?
Replies: 121
Views: 13853

Re: Living like rich people for 1k a month

anonforthis wrote:
Taylor Larimore wrote:
We can rent this whole house for $500 a month.
anonforthis:

I'm curious. Where is this house?

Asia's a pretty big place.

Thank you and best wishes.
Taylor

Taylor,

Please send me a message. I will tell you.
Why so secretive?
Nha Trang, Vietnam.
by ChiefIllini
Wed Apr 30, 2014 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Did you tell anyone you paid off your mortgage?
Replies: 338
Views: 52096

Re: Did you tell anyone you paid off your mortgage?

My parents did not tell anyone, except me. Even if someone asked, my father would tell them he still had a mortgage. They're more afraid of relatives asking for "loans." He recently purchased a brand new car and told people we financed it all.
by ChiefIllini
Sat Apr 19, 2014 7:03 pm
Forum: Personal Investments
Topic: Portfolio Help: Part 2
Replies: 5
Views: 901

Re: Portfolio Help: Part 2

Just as general comments: - I would personally skip the mid cap - I dont see the value in extra allocating to this part So completely remove the Extended Market Fund from my portfolio? Why? - with the same argument I would not try to destinguish between value, groth or core - just go with the capit...
by ChiefIllini
Sat Apr 19, 2014 7:01 pm
Forum: Personal Investments
Topic: Portfolio Help: Part 2
Replies: 5
Views: 901

Re: Portfolio Help: Part 2

The taxable account is a small portion of the total portfolio today and you're contributing much more to tax advantaged accounts each year. If you wanted to use automatic transactions to purchase mutual funds, I suggest opening a taxable account at Vanguard and holding only Total Stock Market in ta...
by ChiefIllini
Sat Apr 19, 2014 2:30 pm
Forum: Personal Investments
Topic: Portfolio Help: Part 2
Replies: 5
Views: 901

Portfolio Help: Part 2

I posted first a few months ago and got some excellent advice. I've made some changes in my taxable account and increased my 401k contributions to the maximum. Now, I have some follow-up questions. Emergency funds: About 12 months Tax Filing Status: Single Tax Rate: 25% Federal, 5% State State of Re...
by ChiefIllini
Tue Apr 08, 2014 10:33 pm
Forum: Personal Consumer Issues
Topic: First Trip to India
Replies: 49
Views: 19229

Re: First Trip to India

This fall my wife and I will be making our first trip to India, flying into Delhi, meeting up with our guide, and trekking in the Himalayas. In India, I mostly found the unexpected to be the most interesting, and the expected to be disappointing -- so don't study up too much on where you're going. ...
by ChiefIllini
Sun Apr 06, 2014 8:36 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA Question
Replies: 3
Views: 689

Re: Backdoor Roth IRA Question

You should be able to contribute for the 2014 year. Do that and then add in the money for the 2013 year. Then convert to roth for both years.
by ChiefIllini
Sat Apr 05, 2014 8:37 am
Forum: Personal Investments
Topic: After Tax 401K to Roth IRA - What are the risks?
Replies: 4
Views: 616

Re: After Tax 401K to Roth IRA - What are the risks?

This is what I started doing too. I rolled over the earnings into my Roth IRA but I'm willing to pay the taxes on it. I can get an additional $5k into my Roth doing this. Win! I think you should do it and don't think there are any risks. If the IRS someday says this isn't allowed, they probably can'...
by ChiefIllini
Sat Apr 05, 2014 8:32 am
Forum: Personal Finance (Not Investing)
Topic: How did you determine your "number" for retirement
Replies: 51
Views: 5614

Re: How did you determine your "number" for retirement

The other question to ask is "when you decided on your number." I'm 26 and things will change in the next 20-30 years. So, I'm contributing to the max in my retirement accounts and will figure out my number later. Just don't know when I will.
by ChiefIllini
Wed Mar 26, 2014 9:45 pm
Forum: Personal Investments
Topic: Contributed to non-deductible traditional IRA by Mistake
Replies: 3
Views: 430

Re: Contributed to non-deductible traditional IRA by Mistake

Ahhhh ha!! Got it. It's the basis that was throwing things off. For some reason I thought the basis would be 0 because the value of the TIRA will be 0 on 12/31/14. It's actually $5500. Well, I guess the mistake contribution was a good learning point on how to do a backdoor roth if I ever need to do ...
by ChiefIllini
Wed Mar 26, 2014 8:49 pm
Forum: Personal Investments
Topic: Contributed to non-deductible traditional IRA by Mistake
Replies: 3
Views: 430

Contributed to non-deductible traditional IRA by Mistake

Hey all, So a friend of mine contributed to a non-deductible traditional IRA at Vanguard since she thought she was over the income limit. This was the first time she ever contributed to any sort of Traditional IRA. She contributed last week (for year 2013) with the idea of doing a backdoor Roth a fe...
by ChiefIllini
Wed Mar 26, 2014 9:54 am
Forum: Personal Investments
Topic: How do I back-door Roth IRA?
Replies: 15
Views: 1787

Re: How do I back-door Roth IRA?

Quick questions: Are you essentially avoiding all taxes? Because the traditional IRA is pre-tax and then you're converting it (without taxation) to a "post-tax" Roth. The Wiki states that converting your other non-Roth IRAs backdoor style "may not be a good idea, as you are usually in a high tax br...
by ChiefIllini
Wed Mar 19, 2014 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: advice requested from engineers
Replies: 85
Views: 7191

Re: advice requested from engineers

A couple of things: 1) he may think he wants a PhD now - but he may change his mind in a couple of years (college can wear on you - and when all your college-mates are graduating and getting high-paid jobs in industry - the thoughts of going on for a Masters/PhD can disappear QUICKLY). Absolutely a...
by ChiefIllini
Wed Mar 19, 2014 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: advice requested from engineers
Replies: 85
Views: 7191

Re: advice requested from engineers

I'm an Illinois alum in ChemE. I would ask RIT what companies actively recruit on campus. I know you said your son wants to do a PhD. When our first engineering professor freshman year asked our class of over 100 kids who was planning on going to grad school, almost everyone raised their hand. How m...
by ChiefIllini
Sat Mar 15, 2014 8:17 am
Forum: Personal Investments
Topic: Dividend stocks for current income in early retirement?
Replies: 38
Views: 5758

Re: Dividend stocks for current income in early retirement?

I'll stick my neck out: assembling a buy-n-hold portfolio of blue chip dividend paying stocks where you can live off the dividends without selling shares in a down market is a fine strategy. It has worked and still works splendidly for many retirees. This is not the board to discuss this strategy a...
by ChiefIllini
Thu Mar 13, 2014 8:41 am
Forum: Investing - Theory, News & General
Topic: Backdoor Roth - why does it make me feel dirty?
Replies: 23
Views: 3709

Re: Backdoor Roth - why does it make me feel dirty?

If big time corporations squeeze out every last penny, why can't us common folk do the same?

Get on board! :sharebeer
by ChiefIllini
Wed Mar 12, 2014 2:24 pm
Forum: Investing - Theory, News & General
Topic: After Tax Investing vs. Pre Tax Investing
Replies: 26
Views: 1782

Re: After Tax Investing vs. Pre Tax Investing

See tfb's The case against Roth 401k which describes how tax how Traditional 401k contributions and withdrawals are taxed. Contributions to Traditional 401k takes income off the top of your income and gives you a benefit at the your higher tax bracket. WIthdrawals from Traditional 401k fill you inc...
by ChiefIllini
Wed Mar 12, 2014 1:02 pm
Forum: Investing - Theory, News & General
Topic: After Tax Investing vs. Pre Tax Investing
Replies: 26
Views: 1782

Re: After Tax Investing vs. Pre Tax Investing

I'm a bit confused as the OP's post discussed contributing to after tax 401k and rolling to a Roth and others are talking about taxable accounts. The discussion was more about pros and cons of pre-tax 401(k) and taxable investing with brokerage accounts. The taxable investing would involve taxes on...
by ChiefIllini
Wed Mar 12, 2014 9:55 am
Forum: Investing - Theory, News & General
Topic: After Tax Investing vs. Pre Tax Investing
Replies: 26
Views: 1782

Re: After Tax Investing vs. Pre Tax Investing

Thanks to all!

I'll pick up Integrating Investments and the Tax Code and give it a read.

Pre-tax investing it is.
by ChiefIllini
Wed Mar 12, 2014 9:32 am
Forum: Investing - Theory, News & General
Topic: Why USA markets over other markets?
Replies: 8
Views: 823

Re: Why USA markets over other markets?

YDNAL wrote: 2. Investing in US$, for growth in US$, to spend in US$.
THIS.
by ChiefIllini
Wed Mar 12, 2014 9:16 am
Forum: Investing - Theory, News & General
Topic: Why USA markets over other markets?
Replies: 8
Views: 823

Re: Why USA markets over other markets?

i believe it's based on market weightings. look at vanguard's total world stock market fund: 9% emerging markets 24% europe 14% pacific <1% middle east 53% north america thus, the general recommendation that US equities is equal to (or greater than) all other international equities combined. Very t...
by ChiefIllini
Wed Mar 12, 2014 9:13 am
Forum: Investing - Theory, News & General
Topic: After Tax Investing vs. Pre Tax Investing
Replies: 26
Views: 1782

Re: After Tax Investing vs. Pre Tax Investing

I don't know what future tax rates will be. If you're 26, it will be a very long time until your beneficiaries take their last required distribution. Tax rates will probably change many times. However, tax rates are likely to remain greater than zero. Suppose you put $5,500 into a Roth IRA. Over so...
by ChiefIllini
Wed Mar 12, 2014 9:11 am
Forum: Investing - Theory, News & General
Topic: After Tax Investing vs. Pre Tax Investing
Replies: 26
Views: 1782

Re: After Tax Investing vs. Pre Tax Investing

What taxes do you think you are avoiding by investing in a taxable account? Depending on what you are investing in, you can be generating taxable capital gains and dividends annually and when you finally sell, you'll have to pay taxes on those gains at whatever the long-term capital gains tax rate ...
by ChiefIllini
Wed Mar 12, 2014 8:33 am
Forum: Investing - Theory, News & General
Topic: Why USA markets over other markets?
Replies: 8
Views: 823

Re: Why USA markets over other markets?

Not sure if the US will grow as fast but I think the idea is that it is viewed as more stable with less volatility than the other markets. I think you want to definitely diversify but people tend to go 30% international. That's what I strive for. Also, our large-cap companies have extensive operatio...
by ChiefIllini
Wed Mar 12, 2014 8:29 am
Forum: Investing - Theory, News & General
Topic: After Tax Investing vs. Pre Tax Investing
Replies: 26
Views: 1782

After Tax Investing vs. Pre Tax Investing

I know the rule of thumb is to contribute to your 401(k) up to the match, then do a Roth IRA contribution, go back to the 401(k) and contribute to the max, and then taxable. I'm 26 (in the 25% bracket and in the next few years will be in the 28% bracket) and currently, I do the following... 1) 6% Pr...
by ChiefIllini
Tue Mar 11, 2014 12:39 pm
Forum: Personal Investments
Topic: Girlfriend is a HCE - Any options for sheltered accounts?
Replies: 12
Views: 1742

Re: Girlfriend is a HCE - Any options for sheltered accounts

So the tax software will tell her "okay, you made a 2013 TIRA contribution of $5500 but you can't deduct because you make too much and you have an employer sponsered plan." But it's still crucial to document it if she changes jobs and converts the 401k to a TIRA. Let's assume she leaves her job in ...
by ChiefIllini
Tue Mar 11, 2014 11:55 am
Forum: Personal Investments
Topic: Girlfriend is a HCE - Any options for sheltered accounts?
Replies: 12
Views: 1742

Re: Girlfriend is a HCE - Any options for sheltered accounts

Make sure she tells her tax software or tax preparer that she made 2013 contributions to Traditional IRA. This is critical to document the non-deductible contribution (IRA basis) in form 8606. The 2014 tax return will build on the 2013 8606 to add 2014 basis and then handle the Roth conversion. The...
by ChiefIllini
Tue Mar 11, 2014 11:15 am
Forum: Personal Investments
Topic: Girlfriend is a HCE - Any options for sheltered accounts?
Replies: 12
Views: 1742

Re: Girlfriend is a HCE - Any options for sheltered accounts

For 2013, she was covered by an employer plan so a MAGI limit applies for the Traditional IRA tax deduction. For single filers, no TIRA tax deduction is allowed if MAGI exceeds $69K. See IRS Pub 590: How much can I deduct? Limit if covered by an employer plan: http://www.irs.gov/publications/p590/c...
by ChiefIllini
Tue Mar 11, 2014 10:25 am
Forum: Personal Investments
Topic: Girlfriend is a HCE - Any options for sheltered accounts?
Replies: 12
Views: 1742

Re: Girlfriend is a HCE - Any options for sheltered accounts

I spent many years in the "HCE penalty box". Your GF's 2013 earnings will prevent her from fully contributing to the 401k for 2014. The good news is that it looks like for 2015 things should be back to normal in your case. In the meantime you could do a backdoor Roth as well as contribute to a tax ...
by ChiefIllini
Tue Mar 11, 2014 8:55 am
Forum: Personal Investments
Topic: Girlfriend is a HCE - Any options for sheltered accounts?
Replies: 12
Views: 1742

Re: Girlfriend is a HCE - Any options for sheltered accounts

Just by the side... in a well-run 401(k) plan the HCEs should be able to contribute the same as everyone else. The issue with HCEs only occurs when an employer doesn't have enough participation in the 401(k) plan by employees who aren't HCEs. It's a rule made to prevent employers from creating a 40...
by ChiefIllini
Tue Mar 11, 2014 8:36 am
Forum: Personal Investments
Topic: Girlfriend is a HCE - Any options for sheltered accounts?
Replies: 12
Views: 1742

Girlfriend is a HCE - Any options for sheltered accounts?

Hey all, So my girlfriend was been labelled a highly compensated employee because of her 2013 earnings. Her pharmacy was understaffed this past year so she got tons of overtime. This year however, they are fully staffed so she won't be getting overtime and thus she will be slightly under the $115k i...
by ChiefIllini
Sat Mar 08, 2014 2:07 pm
Forum: Personal Investments
Topic: 26 Years Old - Roth 401k & Roth IRA?
Replies: 24
Views: 2997

Re: 26 Years Old - Roth 401k & Roth IRA?

When I'm done making all the changes, my portfolio should look something like this: Traditional 401K 62.12% Vanguard Target Retirement 2055 Inv Fund (VFFVX) (0.18%) Roth IRA 0.82% Vanguard Target Retirement 2055 Inv Fund (VFFVX) (0.18%) Taxable 33.23% Vanguard Total Stock Market Index Admiral Fund ...
by ChiefIllini
Thu Mar 06, 2014 11:45 pm
Forum: Personal Finance (Not Investing)
Topic: What was your dumbest financial decision?
Replies: 172
Views: 22806

Re: What was your dumbest financial decision?

Amazon. Bought at adjusted price of about $2/share. Sold at adj. price of about $3/share. Didn't want to be greedy and get burned. Made more than 50% in relatively short time. Closed today at $372.16. OOPS!! Even though I don't understand why this stock keeps going up without any significant earnin...
by ChiefIllini
Thu Mar 06, 2014 8:50 pm
Forum: Personal Investments
Topic: After Tax 401k vs. Roth 401k - There's a Difference???
Replies: 7
Views: 912

Re: After Tax 401k vs. Roth 401k - There's a Difference???

Yep with my plan I can put in 23k tax deferred (with catch up) and another 6k or so in after tax which I can roll out to a Roth IRA to nearly double the amount I can put in Roth each year. So this is not all doom and gloom! :D Clicking around the Fidelity 401k website, I found that I can rollover t...
by ChiefIllini
Thu Mar 06, 2014 2:42 pm
Forum: Personal Investments
Topic: After Tax 401k vs. Roth 401k - There's a Difference???
Replies: 7
Views: 912

Re: After Tax 401k vs. Roth 401k - There's a Difference???

Yep with my plan I can put in 23k tax deferred (with catch up) and another 6k or so in after tax which I can roll out to a Roth IRA to nearly double the amount I can put in Roth each year. So this is not all doom and gloom! :D Clicking around the Fidelity 401k website, I found that I can rollover t...
by ChiefIllini
Thu Mar 06, 2014 11:52 am
Forum: Personal Investments
Topic: After Tax 401k vs. Roth 401k - There's a Difference???
Replies: 7
Views: 912

Re: After Tax 401k vs. Roth 401k - There's a Difference???

A couple years ago some new hires started at my site (same department), one of them was into investing and had all the new hires putting into after tax vs Roth or traditional 401k. I corrected them and explained the difference and a couple of them listened to my methodology of t401k + rIRA vs r401k...
by ChiefIllini
Thu Mar 06, 2014 10:35 am
Forum: Personal Investments
Topic: After Tax 401k vs. Roth 401k - There's a Difference???
Replies: 7
Views: 912

After Tax 401k vs. Roth 401k - There's a Difference???

I literally just found out that my after-tax contributions to my 401k are not "Roth." That means I'll be subject to taxes on the earnings when I withdraw!! :oops: Luckily, it only represents about $4k of my total 401k portfolio. Anyway, I contribute up the match, then do my Roth IRA and now I'll beg...
by ChiefIllini
Wed Mar 05, 2014 8:15 pm
Forum: Personal Investments
Topic: Looking for Portfolio Help (26 y/o)
Replies: 30
Views: 2077

Re: Looking for Portfolio Help (26 y/o)

Be careful about front loading your 401k contributions. Many companies require you to contribute the percentage required to get the match in each pay period. If you max out earlier in the year you will not qualify to receive the full match. You can set this up so that you keep going with the amount...