Search found 30284 matches

by retiredjg
Sun Oct 22, 2017 6:10 am
Forum: Personal Finance (Not Investing)
Topic: Needs help regarding after tax 401k
Replies: 29
Views: 1617

Re: Needs help regarding after tax 401k

Is there somewhere online in which shows how to do the accounting (preferably turbo tax) for the Mega back door roth? I have not done one, but my understanding is that you just enter the 1099 information when you get to the section dealing with 1099s. Also is the mega back door subjected to pro rat...
by retiredjg
Sun Oct 22, 2017 5:58 am
Forum: Investing - Help with Personal Investments
Topic: TSP advice sought
Replies: 10
Views: 833

Re: TSP advice sought

It appears he is in the 15% tax bracket (unless married). So investing 9k in Roth TSP is equal to investing $10.6k in traditional TSP. So it appears to me that traditional allows him to get a little more money into the system. But he will lose at least 15% of that traditional TSP money when he take...
by retiredjg
Sun Oct 22, 2017 5:39 am
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 59
Views: 4574

Re: Federal Retiree Health Care with/Medicare

Having both high BCBS FEHB and Medicare B has eliminated all copays and deductibles, which have been helpful for H’s PT and MD visits and outpatient surgery. I found that all copays and deductibles were also paid when I moved from high BCBS to low BCBS this last year. In fact, the coverage seems ju...
by retiredjg
Sat Oct 21, 2017 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 59
Views: 4574

Re: Federal Retiree Health Care with/Medicare

Well, that's worth looking at. :happy
by retiredjg
Sat Oct 21, 2017 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: How does/can Walmart offer such inexpensive prescriptions?
Replies: 61
Views: 2384

Re: How does/can Walmart offer such inexpensive prescriptions?

I was in the RX business for many years and now retired. I worked for a megacorp HMO and ran a $15mil inventory. Most generic drugs cost very little; even less than 1 penny per tablet for quite a few. It is easy to make money on $4 generic RXs. I am of the opinion that generics are basically the sa...
by retiredjg
Sat Oct 21, 2017 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Portfolio Advise
Replies: 9
Views: 509

Re: Vanguard Portfolio Advise

Are you ready for an overhaul? There's only 2 funds in there that I would keep - Total Stock Index and Total International Index. There are a few other things in there that could be kept now, to get rid of at a later time, but the rest need to go before you get in much deeper. There is a dizzying am...
by retiredjg
Sat Oct 21, 2017 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Needs help regarding after tax 401k
Replies: 29
Views: 1617

Re: Needs help regarding after tax 401k

You should not depend on any tax-preparer to know how to do the back door Roth maneuver. Some do and you may get lucky, but you will have to explain it to most. That means you need to understand the paperwork well yourself. The mega back door is nothing other than an eligible rollover into Roth IRA...
by retiredjg
Sat Oct 21, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: TSP advice sought
Replies: 10
Views: 833

Re: TSP advice sought

It appears he is in the 15% tax bracket (unless married). So investing 9k in Roth TSP is equal to investing $10.6k in traditional TSP. So it appears to me that traditional allows him to get a little more money into the system. Part of me thinks that means he should use traditional TSP. But it is alw...
by retiredjg
Sat Oct 21, 2017 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Portfolio Advise
Replies: 9
Views: 509

Re: Vanguard Portfolio Advise

Welcome to the forum. :happy It is unlikely you will get much help because nobody is going to look up all those ticker symbols and few will figure out what percentage of your portfolio each fund represents. Also, the information is not very meaningful without knowing what kind of account each fund i...
by retiredjg
Sat Oct 21, 2017 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Fixed Annuities Bad Idea?
Replies: 20
Views: 924

Re: Fixed Annuities Bad Idea?

What are recommendations for where to put retirement funds if I do not put it all in a SPIA or in one option to maximize income for retirement? Now and or in the future?Appreciate sound advice and not opportunities for salesmen to make a commission at this point in my life. It depends on what you c...
by retiredjg
Sat Oct 21, 2017 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Slicing and dicing with limited fund options; cost of emerging markets fund
Replies: 11
Views: 341

Re: Slicing and dicing with limited fund options; cost of emerging markets fund

That looks fine.

And if you decide you really need to "complete" that Developed Markets fund, you can still add a slice of Emerging Markets in your Roth IRA. Or not.
by retiredjg
Sat Oct 21, 2017 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: TSP advice sought
Replies: 10
Views: 833

Re: TSP advice sought

He came up with a different option. He has ROTH IRA account with USAA (S&P 500 INDEX). He wants to transfer his tax deferred TSP money into ROTH IRA at USAA at the end of each year and pay tax on the amount as well as any appreciation. Does this option may good financial sense? We understand expens...
by retiredjg
Sat Oct 21, 2017 2:33 pm
Forum: Forum Issues and Administration
Topic: Abbreviations
Replies: 7
Views: 278

Re: Abbreviations

https://www.bogleheads.org/wiki/Abbrevi ... d_Acronyms

Probably more than you wanted to know....and does not address all the D names. Dear husband, Dear wife, Dear son, Dear daughter, mother in law, son in law, etc.

Does that help?
by retiredjg
Sat Oct 21, 2017 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: How does/can Walmart offer such inexpensive prescriptions?
Replies: 61
Views: 2384

Re: How does/can Walmart offer such inexpensive prescriptions?

Do they still have those $4 prescriptions?

I think it is a loss leader. People want to use 1 pharmacy, not several. So if they get their ____ for $4 a month, they will use the same pharmacy for the more expensive Rx's because they don't want to go all over town to pick them up.
by retiredjg
Sat Oct 21, 2017 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: Fixed Annuities Bad Idea?
Replies: 20
Views: 924

Re: Fixed Annuities Bad Idea?

This is my only means of support. If planning to retire in 18-24 months st 59.5 should I buy immediate premium fixed annuity or would I do just as well investing in Vanguard Total Stock Market Index Fund? A SPIA (single premium immediate annuity) is like buying a pension. They are most needed by pe...
by retiredjg
Sat Oct 21, 2017 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Moving international index fund (VTIAX) to conventional IRA - thoughts?
Replies: 4
Views: 200

Re: Moving international index fund (VTIAX) to conventional IRA - thoughts?

According to MorningStar, the 5-year tax cost ratio of VTIAX is 1.06, while it is 0.65 for VTSAX. Vanguard's Total International Index is one of the most recommended funds for a taxable account around here. I wish we knew why the advisor suggested you move it. Every January a few people post the re...
by retiredjg
Sat Oct 21, 2017 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Needs help regarding after tax 401k
Replies: 29
Views: 1617

Re: Needs help regarding after tax 401k

You should not depend on any tax-preparer to know how to do the back door Roth maneuver. Some do and you may get lucky, but you will have to explain it to most. That means you need to understand the paperwork well yourself. The mega back door is nothing other than an eligible rollover into Roth IRA....
by retiredjg
Sat Oct 21, 2017 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Slicing and dicing with limited fund options; cost of emerging markets fund
Replies: 11
Views: 341

Re: Slicing and dicing with limited fund options; cost of emerging markets fund

... I know that things will likely be very different, but having the flexibility of both pre-tax and post-tax money appeals to me generally as a hedge against that uncertainly. I think almost everyone would suggest that you have both pre-tax and post-tax money when you retire. However, there may no...
by retiredjg
Sat Oct 21, 2017 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Slicing and dicing with limited fund options; cost of emerging markets fund
Replies: 11
Views: 341

Re: Slicing and dicing with limited fund options; cost of emerging markets fund

Dolcetto wrote:
Sat Oct 21, 2017 12:15 pm
Is the reason not to use that fund only the expense ratio, or are there others?
The cost is the only reason that I was thinking of. However, it is an actively managed fund and that would be a second reason to avoid it in my book.
by retiredjg
Sat Oct 21, 2017 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Slicing and dicing with limited fund options; cost of emerging markets fund
Replies: 11
Views: 341

Re: Slicing and dicing with limited fund options; cost of emerging markets fund

1. The Wiki page linked says the calculations for the example approximations of the total stock market were performed in 2015. I ran my own calculation using the Morningstar Instant X-Ray as described in the section notes on that Wiki page and got a slightly different style box. Any thoughts on how...
by retiredjg
Sat Oct 21, 2017 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Max out TSP, 457, AND 403b
Replies: 16
Views: 1254

Re: Max out TSP, 457, AND 403b

It appears that I would have to wait to 59.5 to take qualified distributions from a Roth 457. https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts If this is the case, does I not make more sense to do a traditional 457 and Roth 403b? Then we would have thought opti...
by retiredjg
Sat Oct 21, 2017 6:46 am
Forum: Personal Finance (Not Investing)
Topic: Needs help regarding after tax 401k
Replies: 29
Views: 1617

Re: Needs help regarding after tax 401k

Let's say there a year in early retirement where we don't work (let's say around age 55) and therefore we are at a low marginal tax rate, Could I roll over money from IRA or 401k to Roth IRA? Does the distributions on the rollover count as ordinary taxable income which will play a role in the deter...
by retiredjg
Fri Oct 20, 2017 4:28 pm
Forum: Investing - Theory, News & General
Topic: The Effect of Rising Rates on Bond Funds
Replies: 7
Views: 726

Re: The Effect of Rising Rates on Bond Funds

A rough rule of thumb. If your bond fund has a duration of 5 years, if interest rates go up 1%, the value of your bond shares should drop about 5%. Then your dividends will start to increase as your fund takes on new bonds with higher interest rates. If interest rates go up another 1%, you will lose...
by retiredjg
Fri Oct 20, 2017 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401(k) as well as back door Roth IRA?
Replies: 5
Views: 129

Re: Roth 401(k) as well as back door Roth IRA?

You can do it, but unless you are in a very low tax bracket, it is probably not your best choice.
by retiredjg
Fri Oct 20, 2017 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Looming Retirement & Market Jitters
Replies: 43
Views: 3193

Re: Looming Retirement & Market Jitters

runner540 wrote:
Fri Oct 20, 2017 9:20 am
I would not take comfort from the speed amd form of the recovery.
Yes, I know a lot of people thought the market "bounced back" in no time at all. I was not one of them.
by retiredjg
Fri Oct 20, 2017 9:14 am
Forum: Investing - Theory, News & General
Topic: Has your "risk tolerance" been tested?
Replies: 105
Views: 6397

Re: Has your "risk tolerance" been tested?

blarg wrote:
Thu Oct 19, 2017 6:20 pm
Yes, I was weighed and found wanting. 2008-2009, I was young and macho and 100% equities.
I wish everybody could be so honest.

Welcome to the forum. :happy
by retiredjg
Fri Oct 20, 2017 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Looming Retirement & Market Jitters
Replies: 43
Views: 3193

Re: Looming Retirement & Market Jitters

I'm distracted by the news reports that if the tax cut package does not happen, the market will experience a steep drop. Never closely paid attention to these types of stories before, but with retirement so close now....the hair is beginning to stand on the back of my head. If you have enough money...
by retiredjg
Fri Oct 20, 2017 6:54 am
Forum: Personal Finance (Not Investing)
Topic: Needs help regarding after tax 401k
Replies: 29
Views: 1617

Re: Needs help regarding after tax 401k

This probably would allow us to reach FI faster but just the thought of paying taxes on the distributions from the IRA during our retired years scares us even though its potentially going to be at a lower tax bracket. It might be helpful to think of that money as Uncle Sam's money that is temporari...
by retiredjg
Fri Oct 20, 2017 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Needs help regarding after tax 401k
Replies: 29
Views: 1617

Re: Needs help regarding after tax 401k

This does make sense. Thank you for your input. Are we allowed to perform the back door roth (non-deductible IRA to roth IRA) and mega back door roth (after tax 401k to roth IRA) in the same year? Yes. This is no problem. They are pretty much unrelated other than the fact that the money ends up in ...
by retiredjg
Thu Oct 19, 2017 4:37 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 125
Views: 14636

Re: TSP to Vanguard?

Those are pretty surprising numbers. Nevertheless, I don't think you can draw an inference that most people consciously choose the G Fund and would leave if the G Fund disappears. But that's nothing more than an opinion. FWIW, I'm in retirement and I have a healthy dose of both the F Fund and the G ...
by retiredjg
Thu Oct 19, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Account Stolen by Identity theft
Replies: 227
Views: 27404

Re: Retirement Account Stolen by Identity theft

I will also give the police until next Monday to determine who is investigating this case and then start to create a fuss if I get no response. What do you think?? I don't think it is ever good to "create a fuss" with people who are going to be doing their civic duty by serving you. Investigation c...
by retiredjg
Thu Oct 19, 2017 10:31 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 125
Views: 14636

Re: TSP to Vanguard?

... my question is what would this functionally do to the TSP if enacted? Wouldn't this lead to a massive exodus of retiree assets? What becomes of the Lifecycle funds which use G fund as a anchor? Working Feds are essentially captive participants, but what retiree would stick with TSP if this come...
by retiredjg
Thu Oct 19, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Needs help regarding after tax 401k
Replies: 29
Views: 1617

Re: Needs help regarding after tax 401k

Option 1 - Have the money deposited into a "non interest" bearing account in the after tax 401k and just rollover into roth IRA every 6 months (avoids gains or losses so in theory would not be a taxable event?) You may not even have this option. Many plans do not allow it. But why keep your money o...
by retiredjg
Thu Oct 19, 2017 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Making a Roth IRA for my Dad
Replies: 31
Views: 1328

Re: Making a Roth IRA for my Dad

Have you found the Wiki yet? If not, here's an introduction to the "getting started" section. You might find it helpful.

https://www.bogleheads.org/wiki/Getting_started
by retiredjg
Thu Oct 19, 2017 7:43 am
Forum: Investing - Help with Personal Investments
Topic: Making a Roth IRA for my Dad
Replies: 31
Views: 1328

Re: Making a Roth IRA for my Dad

Pkcrafter, what tax-efficient funds exist with Vanguard? I wasn't aware of such an option beyond their more standard equity/debt/blend/target/etc. offerings. I'm not Paul, but I'll get this answer started. Stock index funds are tax efficient. The broader the fund (e.g. total stock index) the more t...
by retiredjg
Thu Oct 19, 2017 5:37 am
Forum: Investing - Help with Personal Investments
Topic: Separate Roth IRA accounts for the backdoor and the mega backdoor?
Replies: 9
Views: 656

Re: Separate Roth IRA accounts for the backdoor and the mega backdoor?

I think some people might suggest using separate accounts because they might want to re-characterize the back door if the market goes down. I can see how that could possibly be beneficial for a Roth conversion from a pre-tax IRA since you'd have taxes due on that conversion, but I'm curious why tha...
by retiredjg
Wed Oct 18, 2017 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Separate Roth IRA accounts for the backdoor and the mega backdoor?
Replies: 9
Views: 656

Re: Separate Roth IRA accounts for the backdoor and the mega backdoor?

I think some people might suggest using separate accounts because they might want to re-characterize the back door if the market goes down. If that is of interest to you, having them in separate accounts just makes it a little easier. But it can be accomplished even if you don't keep them separate. ...
by retiredjg
Wed Oct 18, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Making a Roth IRA for my Dad
Replies: 31
Views: 1328

Re: Making a Roth IRA for my Dad

I answered them as a quote, they're shaded in bold next to your original questions. Ok, thanks. I did not see your answers in the quote. When will you know about the capital gains? The answer will may be different if there is $1k in cap gains vs $15k. And long term gains vs short term gains matters...
by retiredjg
Wed Oct 18, 2017 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Making a Roth IRA for my Dad
Replies: 31
Views: 1328

Re: Making a Roth IRA for my Dad

I don't know. Maybe you could answer the questions above?
by retiredjg
Wed Oct 18, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Making a Roth IRA for my Dad
Replies: 31
Views: 1328

Re: Making a Roth IRA for my Dad

It is certainly possible to move a taxable account to Vanguard. The question is whether Vanguard will accept this particular fund.
by retiredjg
Wed Oct 18, 2017 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Making a Roth IRA for my Dad
Replies: 31
Views: 1328

Re: Making a Roth IRA for my Dad

You need to find out if he has the A shares or the B shares. It makes a difference because the B shares have a surrender period (might cost extra to get out early). What is the first year he is likely to be in the 15% bracket? How much does he have in capital gains, long and short term? What is his ...
by retiredjg
Wed Oct 18, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Deciding between Roth TSP and Trad TSP
Replies: 26
Views: 1453

Re: Deciding between Roth TSP and Trad TSP

If you stay single and if tax law does not change, you probably will be in the 25% bracket in retirement as you expect. But most people marry and that would quite likely put you in a lower bracket in retirement. That would argue for using traditional TSP now instead of Roth. Your pension, on the oth...
by retiredjg
Wed Oct 18, 2017 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-efficient funds for brokerage acct
Replies: 2
Views: 327

Re: Tax-efficient funds for brokerage acct

The two funds most often recommended for a taxable account are a broad US stock index fund (such as Total Stock Index) and/or a broad international stock index fund (such as Total International Index). If you are in a higher tax bracket, Total Bond would not be recommended for a taxable account. If ...
by retiredjg
Wed Oct 18, 2017 6:26 am
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 59
Views: 4574

Re: Federal Retiree Health Care with/Medicare

It sounds like you both are saying that the insurance company gives the insured money to pay or reimburse Medicare premiums???? :shock:
by retiredjg
Tue Oct 17, 2017 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale rule unclear if not married at time of buy or sell
Replies: 5
Views: 487

Re: Wash sale rule unclear if not married at time of buy or sell

I subscribed to this thread because I thought the question was intriguing and wanted to know the answer. We don't often get questions that nobody remembers having been asked before (usually dozens or hundreds of times before). My guess - what you do while single does not cause wash sales if you marr...
by retiredjg
Tue Oct 17, 2017 8:38 am
Forum: Investing - Help with Personal Investments
Topic: 401k to Roth IRA conversion
Replies: 4
Views: 345

Re: 401k to Roth IRA conversion

There is no 20% bracket unless you are adding 15% federal and 5% state. So maybe looking at your bracket again is in order. Compare your taxable income, line 43 of Form 1040 or a reasonable guess for your "down years", to this chart. http://www.moneychimp.com/features/tax_brackets.htm We don't know ...
by retiredjg
Tue Oct 17, 2017 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Hold bonds in taxable or tax-deferred accounts? I am confused
Replies: 12
Views: 1106

Re: Hold bonds in taxable or tax-deferred accounts? I am confused

The more I read about the topic the more confusing it is. Should bonds/bond index funds be held in taxable or tax-deferred accounts. It is confusing. And part of this has to do with the purpose of the money. For example, you would be unwise to hold your house down payment in stocks in a taxable acc...
by retiredjg
Tue Oct 17, 2017 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Alternative to Vanguard PAS (dreadful service)
Replies: 16
Views: 1548

Re: Alternative to Vanguard PAS (dreadful service)

EDIT: She has decided to go with Fidelity, and they've been terrific thus far. Everything that took 8 weeks with Vanguard, Fidelity has accomplished in an afternoon. The question remains of what to do with the funds once they reach Fidelity -- it looks as if there are a number of services on offer:...
by retiredjg
Mon Oct 16, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Family Portafolio Planning Help
Replies: 5
Views: 358

Re: Family Portafolio Planning Help

Well, if you just finished paying off CC debt, good for you! That's an accomplishment.