Search found 7166 matches

by FiveK
Mon Aug 19, 2019 10:13 am
Forum: Personal Investments
Topic: Understanding capital gains tax
Replies: 6
Views: 403

Re: Understanding capital gains tax

Please help me understand how much long term capital gains tax I would be paying if I sold 200,00.00 in my Vanguard Total Stock Market. According to what I find online I am in the 15% tax bracket for capital gains. So, is it as simple as paying 15% of 200.000.00? This is my first time having to sel...
by FiveK
Sun Aug 18, 2019 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: minimize taxable income and prepare for future
Replies: 5
Views: 531

Re: minimize taxable income and prepare for future

Fivek- those are important clarifications. 1) state disability benefit is not taxable this year but will be when it is paid out by social security in future years. 2) 100% of the stock sale is long term capital gains (family business, no initial cost to us). Even assuming (but see StealthRabbit's p...
by FiveK
Sun Aug 18, 2019 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: minimize taxable income and prepare for future
Replies: 5
Views: 531

Re: minimize taxable income and prepare for future

Question: How can I minimize our taxable income this year? And the next few years? How should we invest our funds? Bertlebee, welcome to the forum. Sorry to hear about your situation. Some significant questions: 1. Are the disability benefits taxable? Are these from Soc. Sec. or private insurance? ...
by FiveK
Sun Aug 18, 2019 11:34 am
Forum: Personal Investments
Topic: Roth 401k vs Roth IRA
Replies: 12
Views: 915

Re: Roth 401k vs Roth IRA

Our effective tax rate is about 15.5%. Based on that, you are currently in the low end of the 24% federal bracket - correct? I would like to rollover $150k in my Rollover IRA, take $75k and roll that amount into my Roth IRA, take the other $75k and pay down debt with that, and hopefully pay taxes t...
by FiveK
Sat Aug 17, 2019 11:57 pm
Forum: Personal Investments
Topic: Simple tax loss harvesting strategy
Replies: 12
Views: 1270

Re: Simple tax loss harvesting strategy

...will that work for tax loss harvesting without having to worry about turning on/off auto investment? Depends on what you mean by "auto investment." If you sell a particular fund, avoiding wash sales means not buying that fund within +/- 30 days of the sale - whether the purchase is made with "ne...
by FiveK
Sat Aug 17, 2019 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: Are we financially okay?
Replies: 36
Views: 4802

Re: Are we financially okay?

takeabiteoflife, welcome to the forum. Me 48 yo, DW 46 yo, 11 yr old, 8 yr old We live in a VHCOL area in East Coast ...income is $200K per year with potential for 15% annual cash bonus. Monthly expenses are ~$13,000-14,000 per month (~$6K for mortgage and property tax) Assuming $215K gross salary a...
by FiveK
Sat Aug 17, 2019 10:42 pm
Forum: Personal Investments
Topic: Please review my asset allocation
Replies: 6
Views: 548

Re: Please review my asset allocation

Goride65, welcome to the forum. No doubt you could tweak things here or there, and it is good to look at your overall asset allocation (see also Tax-efficient fund placement - Bogleheads ), but overall "keep up the good work!" seems a reasonable reply. :) See also Investment Order for generic sugges...
by FiveK
Sat Aug 17, 2019 2:02 pm
Forum: Personal Investments
Topic: Roth 401k vs Roth IRA
Replies: 12
Views: 915

Re: Roth 401k vs Roth IRA

1. You can't do an in-service distribution making the rest of your post a non issue. 2. The taxes on conversions are paid on your marginal tax rate, not your effective one 3. Taxes on conversions are due April 15th and do not require estimated taxes. You may opt for tax withholding at the custodian...
by FiveK
Fri Aug 16, 2019 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Form 8606 not filed with Taxes for last 3 yrs, now what ??
Replies: 8
Views: 1294

Re: Form 8606 not filed with Taxes for last 3 yrs, now what ??

Thanks everybody I think I need to give more information for proper advice, OK here goes- We retired in yr 2015 & have not had any earned income since, and nor did any Roth Conversions or took any distributions in yrs 2016, 2017 or 2018 & have not filed Form 8606 for these 3 years. If one does not ...
by FiveK
Fri Aug 16, 2019 8:23 pm
Forum: Personal Investments
Topic: Review - 34 yr old
Replies: 18
Views: 3076

Re: Review - 34 yr old

Hmmm, so maxing out our backdoor Roths are enough diversification that it’s not worth giving up any tax advantage of the traditional TSP? Or said differently, I should take all the tax advantaged space I can since we’re able to max both Roth IRAs and traditional TSP. The choice of traditional vs. R...
by FiveK
Fri Aug 16, 2019 4:45 pm
Forum: Personal Investments
Topic: Ok it’s time for, My Portfolio review
Replies: 12
Views: 1251

Re: Ok it’s time for, My Portfolio review

Nice catch. Do I understand correctly that I should fill up my AA allotment of bonds first into my Traditional and inherited IRA and if I have any allotment left, I place that into Roth or is there a better method. Thank you That is a reasonable approach. As that wiki article discusses, other appro...
by FiveK
Fri Aug 16, 2019 4:02 pm
Forum: Personal Investments
Topic: Ok it’s time for, My Portfolio review
Replies: 12
Views: 1251

Re: Ok it’s time for, My Portfolio review

None of my IRA’S have individual amounts that equals 1% so I will present them as a percentage of my total portfolio. 17% Traditional IRA 6% Roth IRA 5% Inherited IRA I would appreciate any and all input to work toward a 3 Fund portfolio which unless otherwise advised will consist of: SPTM... SPDR ...
by FiveK
Fri Aug 16, 2019 2:11 pm
Forum: Personal Investments
Topic: Single-stock investing in taxable or Roth?
Replies: 39
Views: 1576

Re: Single-stock investing in taxable or Roth?

To the extent he believes this stock will outperform, Roth is the logical conclusion. To the extent he believes this stock may outperform but may also underperform, taxable is the logical conclusion. You pays your money and you takes your chances - and when you find your hindsight glasses you'll kno...
by FiveK
Fri Aug 16, 2019 12:58 pm
Forum: Personal Investments
Topic: Does this Work
Replies: 9
Views: 1179

Re: Does this Work

With that said I'm assuming there's really no benefit to move to Fidelity and try to simplify managing my accounts at that point (even though I am bitter about losing my Flagship rep)? There is the benefit of simplicity. Completely up to you what value to place on that benefit, ;) Whichever way you...
by FiveK
Fri Aug 16, 2019 10:21 am
Forum: Personal Investments
Topic: Review - 34 yr old
Replies: 18
Views: 3076

Re: Review - 34 yr old

Is a 75/25 split between TSP Traditional/Roth reasonable then? Yes it's reasonable. So are 100/0, 50/50, and 0/100 - all depending on what one assumes. If you want to minimize your maximum error, choose 50/50 so you can't be more than half wrong. ;) The earlier you do retire, the more likely tradit...
by FiveK
Thu Aug 15, 2019 10:28 pm
Forum: Personal Investments
Topic: Does this Work
Replies: 9
Views: 1179

Re: Does this Work

People don’t know the symbols for various funds/ETFs. If you include those in your post, you’ll get more responses. Use the small pencil in the upper right to edit. I understand that for giant lists if plan choices, but really? VTI, VXUS, BND are like the quintessential vangaurd 3 fund portfolio. W...
by FiveK
Thu Aug 15, 2019 9:01 pm
Forum: Personal Investments
Topic: Review - 34 yr old
Replies: 18
Views: 3076

Re: Review - 34 yr old

Is a 75/25 split between TSP Traditional/Roth reasonable then? Yes it's reasonable. So are 100/0, 50/50, and 0/100 - all depending on what one assumes. If you want to minimize your maximum error, choose 50/50 so you can't be more than half wrong. ;) The earlier you do retire, the more likely tradit...
by FiveK
Thu Aug 15, 2019 5:51 pm
Forum: Personal Investments
Topic: Roth IRA and Brokerage asset allocation advice
Replies: 7
Views: 460

Re: Roth IRA and Brokerage asset allocation advice

If you don't need the cash now, contributing up to what you earn in 2019 to a Roth IRA should be a good choice.
by FiveK
Thu Aug 15, 2019 5:00 pm
Forum: Personal Investments
Topic: Review - 34 yr old
Replies: 18
Views: 3076

Re: Review - 34 yr old

chrismj wrote:
Thu Aug 15, 2019 2:19 pm
...but I'm trying to keep options open, e.g. I would like to have the freedom for an early "retirement" career change if I want it.
In that case, traditional instead of Roth may be best, due to lower income and thus lower tax rates when you withdraw.
by FiveK
Thu Aug 15, 2019 4:43 pm
Forum: Personal Investments
Topic: Roth IRA and Brokerage asset allocation advice
Replies: 7
Views: 460

Re: Roth IRA and Brokerage asset allocation advice

Yes the 6K is earned income from my previous job. It has to have been earned in 2019 for you to make a 2019 contribution. Money earned prior to 2019 doesn't count. 1. I noticed on the vanguard page that there is an ETF version available and is there any benefit between going the ETF or index fund r...
by FiveK
Wed Aug 14, 2019 10:27 pm
Forum: Personal Investments
Topic: Re rollover to new employer
Replies: 5
Views: 362

Re: Re rollover to new employer

Sorry. I am no longer employed with UC. I plan on rolling over old employer’s fidelity plan to my new employer’s vanguard plan. In that case, provided your current employer will accept the funds, there should be no tax ramifications. In terms of account value, the market will do whatever the market...
by FiveK
Wed Aug 14, 2019 8:50 pm
Forum: Personal Investments
Topic: withdrawl strategies
Replies: 2
Views: 528

Re: withdrawl strategies

You have a base amount of "unavoidable" taxable income: the inherited nonspouse tIRA and 401k, the interest and dividends thrown off by the taxable accounts, and (probably) the state pensions (because many won't pay larger annual amounts in return for deferring them). The SS annual payments will inc...
by FiveK
Wed Aug 14, 2019 8:37 pm
Forum: Personal Investments
Topic: Three fund portfolio
Replies: 13
Views: 1518

Re: Three fund portfolio

We are thinking of following the Bogleheads three fund portfolio. Is it wise to invest in the three fund at this time when market may start going down. If you can avoid panic selling during the almost-inevitable drops, you can probably do at least as well as the world’s worst market timer . Does th...
by FiveK
Wed Aug 14, 2019 7:24 pm
Forum: Personal Investments
Topic: Re rollover to new employer
Replies: 5
Views: 362

Re: Re rollover to new employer

standupguy wrote:
Wed Aug 14, 2019 5:40 pm
Any downsides to rolling it Over to vanguard?
The penalty for doing so if you are still employed by the 403b employer?
by FiveK
Wed Aug 14, 2019 7:22 pm
Forum: Personal Investments
Topic: Buying ETF's - Need advice on the type of order
Replies: 5
Views: 457

Re: Buying ETF's - Need advice on the type of order

See 7 Tips for Placing ETF Trading Orders for some reasonable thoughts. If you place your order more or less in the middle of the day, it's likely (but never guaranteed) that there won't be huge swings just as you do so. If you want to place a limit order $0.10/share under the current trading price,...
by FiveK
Wed Aug 14, 2019 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Overwhelmed with Social Security and Medicare Benefits for DM
Replies: 9
Views: 1255

Re: Overwhelmed with Social Security and Medicare Benefits for DM

I assume that she should: 1) sign up for Medicare Part A 2) not sign up for Medicare Part B (because she already has health insurance from work?) 3) delay taking her own SSN benefits now until age 70. I am not sure how to perform this calculation. 1. Yes 2. Depends on what the employer's insurance ...
by FiveK
Wed Aug 14, 2019 12:01 pm
Forum: Personal Investments
Topic: Is a Backdoor Roth worth it in our situation?
Replies: 26
Views: 1316

Re: Is a Backdoor Roth worth it in our situation?

Why does everyone keep saying put it in taxable? How does taxable beat tax deferred growth in a trad account with the option to convert in the future? See Non-deductible traditional IRA - Bogleheads . As noted there, "Whether a tax efficient fund comes out ahead in a non-deductible IRA or in a taxa...
by FiveK
Wed Aug 14, 2019 11:41 am
Forum: Personal Investments
Topic: Traditional vs Roth TSP 35% bracket
Replies: 4
Views: 397

Re: Traditional vs Roth TSP 35% bracket

I expect my rate in retirement to be lower although that is just a guess. If that is your current expectation, then using traditional now is the logical consequence. That doesn't mean you have to use traditional for the rest of your career. As things change - marital status, pension expectations, c...
by FiveK
Wed Aug 14, 2019 11:08 am
Forum: Personal Investments
Topic: Finish paying off home or start a IRA?
Replies: 31
Views: 2327

Re: Finish paying off home or start a IRA?

voya target solution 2020 -2060 (in 5 year increments) .66 blackrock russell 3000 index .28 Blackrock global equity Ex us .38 The extra fees being charged for the voya target funds, compared with what it would cost you for US and/or international funds, seem excessive, but that's just opinion. You ...
by FiveK
Tue Aug 13, 2019 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income
Replies: 46
Views: 2451

Re: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income

He is assuming both maxing 401k out and an additional $12,000 in backdoor Roths, so $50,000 a year starting at $250,000 at 30. Getting $10 MM + is certainly doable. 1. The backdoor Roth will grow and be withdrawn tax free, so that doesn't count. 2. Appears the assumptions (in addition to the given ...
by FiveK
Tue Aug 13, 2019 8:16 pm
Forum: Personal Investments
Topic: Is a Backdoor Roth worth it in our situation?
Replies: 26
Views: 1316

Re: Is a Backdoor Roth worth it in our situation?

...but definitely worth it for your wife. Yes. Good way to look at it. The fees make things a bit worse than $700/yr due to compounding. E.g., $70K earning 8%/yr is $326K after 20 years, while earning 7%/yr is only $271K. Depending on current vs. expected future marginal rates, converting one or bo...
by FiveK
Tue Aug 13, 2019 8:08 pm
Forum: Personal Investments
Topic: Is a Backdoor Roth worth it in our situation?
Replies: 26
Views: 1316

Re: Is a Backdoor Roth worth it in our situation?

abyan wrote:
Tue Aug 13, 2019 6:39 pm
...can you rollover those 401ks OUT of your employers and to Vanguard or somewhere else with MUCH lower expense ratios?
Not without penalty while still employed at that company and under age 59.5.
by FiveK
Tue Aug 13, 2019 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income
Replies: 46
Views: 2451

Re: Friend Being Offered Variable & Indexed Universal Life for Tax-free Retirement Income

His main concern is that in retirement his 401k will be $10 MM + and all taxable, so he is open to hearing about creating any tax-free money he can pull from. If that is his main concern, is it valid? In other words, what is he assuming to get the $10 MM number? Does either 401k plan offer - a Roth...
by FiveK
Tue Aug 13, 2019 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Conundrum
Replies: 46
Views: 3139

Re: Roth Conversion Conundrum

...this puts me at about $223k, which I thought was in the 35% bracket Yes, it is. That suggests some aggressive traditional to Roth conversions between now and then could be worthwhile. You might redo the projections with a more conservative return, but it appears you are giving this good consider...
by FiveK
Mon Aug 12, 2019 5:33 pm
Forum: Personal Investments
Topic: Investment Advice
Replies: 11
Views: 979

Re: Investment Advice

Thanks for the help. Is the excel spreadsheet the "Retiree Portfolio Model". No. That's a good one also, but the one used to generate the charts is the personal finance toolbox Excel spreadsheet. From that wiki link, the most recent version is https://drive.google.com/file/d/1aPE6MbD7TM-qp6dsHDWALl...
by FiveK
Mon Aug 12, 2019 5:22 pm
Forum: Personal Investments
Topic: Natural savers but in the right places? Portfolio overview. Concise questions.
Replies: 8
Views: 857

Re: Natural savers but in the right places? Portfolio overview. Concise questions.

3) Does his employer also offer a 457b plan? If so is his employer a government body or agency? Or is his employer a charity or non-profit? No. Non-profit. See 457(b) - Bogleheads for what that means. 6) Will his 403b plan accept a rollover of his rollover IRA? and If he can roll his existing pre-t...
by FiveK
Mon Aug 12, 2019 1:19 pm
Forum: Personal Investments
Topic: Critique My 120k Per Year Plan
Replies: 29
Views: 3688

Re: Critique My 120k Per Year Plan

You may want to convert some traditional to Roth each year. Converting at least enough to reach the 27% federal marginal tax rate is likely correct. 3. I'm planning on "managing" my taxable income up until 65 to gain some of the ACA discounts. My HSA also has about 65k if I need to dip into it alon...
by FiveK
Mon Aug 12, 2019 1:11 pm
Forum: Personal Investments
Topic: Help! How do I calculate my contributions with end of year employers contributions?
Replies: 7
Views: 264

Re: Help! How do I calculate my contributions with end of year employers contributions?

You might use the formula for the Future value of a growing annuity, but rolling your own spreadsheet may be more straightforward.
by FiveK
Mon Aug 12, 2019 1:05 pm
Forum: Personal Investments
Topic: Natural savers but in the right places? Portfolio overview. Concise questions.
Replies: 8
Views: 857

Re: Natural savers but in the right places? Portfolio overview. Concise questions.

jak3812, welcome to the forum. 1. Maybe. What fees are you paying now, and what would it cost in capital gain taxes to have the balance in your desired Vanguard funds? 2. Yes, it is that simple. You should have your cost basis set up for "specific lot identification" (or words to that effect) so you...
by FiveK
Mon Aug 12, 2019 12:45 pm
Forum: Personal Investments
Topic: Critique My 120k Per Year Plan
Replies: 29
Views: 3688

Re: Critique My 120k Per Year Plan

You may want to convert some traditional to Roth each year. Converting at least enough to reach the 27% federal marginal tax rate is likely correct.

Determining whether to "push through" that 27% zone and convert even more in the 22% bracket would take a sharper pencil, but may be worthwhile.
by FiveK
Mon Aug 12, 2019 11:18 am
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 199
Views: 13045

Re: Roth > Taxable > tIRA

1) I've been kicking myself for years for putting too much money in tIRA and not enough traditional or Roth. I essentially saved 15% income tax in my younger working years to pay 24% income tax in my retirement years. How did you save so much at 15% all those years? That would be a pretty low salar...
by FiveK
Mon Aug 12, 2019 11:08 am
Forum: Personal Investments
Topic: Any reason not to max out three plans?
Replies: 46
Views: 3020

Re: Any reason not to max out three plans?

Any reason not to take advantage of the additional pretax space? As already noted, there are definitely reasons to do some back of the envelope estimating to help your decision making. See towards the bottom of the Investment Order post for one way to estimate your traditional withdrawal marginal t...
by FiveK
Mon Aug 12, 2019 11:01 am
Forum: Personal Investments
Topic: Fidelity HSA set it and forget it investment?
Replies: 12
Views: 1082

Re: Fidelity HSA set it and forget it investment?

Another option is FFNOX - Fidelity ® Four-in-One Index Fund.

Pros and cons to all suggestions. When you find your hindsight glasses, you'll know which was best.
by FiveK
Mon Aug 12, 2019 10:59 am
Forum: Personal Investments
Topic: Portfolio Review Entering Retirement
Replies: 12
Views: 1358

Re: Portfolio Review Entering Retirement

I plan to delay SS until FRA at a minimum, and perhaps to 70, in order to (a) let it grow, (b) take advantage of time window to make Roth conversions from pre-tax accounts, and (c) because we don't need it immediately. That makes sense. The most advantageous time window to make Roth conversions is ...
by FiveK
Mon Aug 12, 2019 12:34 am
Forum: Personal Investments
Topic: Student loan debt vs. VTSAX
Replies: 37
Views: 2503

Re: Student loan debt vs. VTSAX

The psychological effect of paying down debt and being debt free is significant for some, and negligible for others.

Many in each group can't understand how the other group could think that way. ;)
by FiveK
Sun Aug 11, 2019 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 418
Views: 17714

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

For here, I think the better approach is to click on the "edit" button for the July 4, 2019 version. Then, copy the content into the Bogleheads:Sandbox . Make changes, undo, change again until you're done. You'll keep a complete history of the changes and can revert anything that goes awry. When yo...
by FiveK
Sun Aug 11, 2019 5:52 pm
Forum: Personal Investments
Topic: deferred state pension benefits- increase in value?
Replies: 3
Views: 376

Re: deferred state pension benefits- increase in value?

Hence my question- Typically do deferred state pension benefits increase in value over time (because of pension investment return)? I've asked the Virginia Retirement System the same question but haven't heard back. Don't know about "typically" - anecdotal information suggests "no" - but you really...
by FiveK
Sun Aug 11, 2019 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Conundrum
Replies: 46
Views: 3139

Re: Roth Conversion Conundrum

- consider recharacterizing the contribution (assuming we are referring to the rollover of the $271k when we say 'contribution'?), if this is permitted after a conversion has occurred. This could be moot if it makes more sense to convert the $271k to Roth ... Contribution: addition of money to an I...
by FiveK
Sat Aug 10, 2019 11:33 pm
Forum: Personal Investments
Topic: Ok to increase 401K contributions before maxing out Roth IRAs?
Replies: 51
Views: 2128

Re: Ok to increase 401K contributions before maxing out Roth IRAs?

JB2013 wrote:
Sat Aug 10, 2019 11:24 pm
What are people’s thoughts based upon the information I’ve already provided? Again, 12% tax bracket and gross income of 100k. Thanks!!!
Are you interested in making your own estimate of your retirement marginal tax rate?
by FiveK
Sat Aug 10, 2019 9:41 pm
Forum: Personal Investments
Topic: Student loan debt vs. VTSAX
Replies: 37
Views: 2503

Re: Student loan debt vs. VTSAX

Am I missing something? Yes. Monthly payment on a 20 year loan of $100,000 at 6%/yr is $716.43. Total payments would be $171,943, not $220K. But the real comparison should go like this: - Debt of $100K - $100K cash on hand (or $100K you could turn into cash without tax) - post-tax income stream of ...