Search found 30731 matches

by retiredjg
Fri Dec 15, 2017 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Tax planning: Convert Roth or zero tax due?
Replies: 18
Views: 987

Re: Tax planning: Convert Roth or zero tax due?

Oh. Might be something to look at - I'd like to convert more myself!
by retiredjg
Fri Dec 15, 2017 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Tax planning: Convert Roth or zero tax due?
Replies: 18
Views: 987

Re: Tax planning: Convert Roth or zero tax due?

JW-Retired wrote:
Fri Dec 15, 2017 10:25 am
You might think about suspending your SS until age 70....JW
Are you sure you can still do that? I thought that had been stopped a few years ago.
by retiredjg
Fri Dec 15, 2017 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Tax planning: Convert Roth or zero tax due?
Replies: 18
Views: 987

Re: Tax planning: Convert Roth or zero tax due?

I am a California resident and I am in the process of projecting my 2017 tax liability using HRBlock tax software. I am restricting this discussion to federal taxes because the state software update will not be available until January 2018, so the state projection is not possible. I retired in May ...
by retiredjg
Fri Dec 15, 2017 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion ... Timing
Replies: 8
Views: 599

Re: Roth Conversion ... Timing

I too think the rep was talking about contribution, not conversion. A conversion is taxed in the year it happens. If you want the income to be reported on 2017 taxes, convert at least a few days before the end of the year. If you would like to verify this answer, download the 2016 Form 8606 and see ...
by retiredjg
Fri Dec 15, 2017 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?
Replies: 8
Views: 632

Re: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?

Some comments about several misunderstandings. I won't go into great detail though. Hey All, 2 part thread. Part 1, is there anybody out there who would make a case NOT to use a mega-backdoor roth? This is assuming that you've maxed your normal 401k and normal Roth IRA. I can't think of a reason not...
by retiredjg
Fri Dec 15, 2017 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?
Replies: 8
Views: 632

Re: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?

I'll also quibble some with crumbone's answer, but much of it is correct. -your employer must allow after-tax contributions (not the same as Roth contributions) to the 401k -your employer must allow in-service (while working) non-hardship distributions from that after-tax account...OR...your employe...
by retiredjg
Thu Dec 14, 2017 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA worth it?
Replies: 19
Views: 1209

Re: Backdoor Roth IRA worth it?

The only solution I see is to call the custodian and get a return of your contribution (and it's earnings). I believe you can also use the words "withdrawal of the contribution", but it has to be clear you want to un-do what you did. This is not an ordinary withdrawal. It has to be done by tax day 2...
by retiredjg
Thu Dec 14, 2017 8:50 am
Forum: Investing - Help with Personal Investments
Topic: 40,000 to safely invest
Replies: 15
Views: 769

Re: 40,000 to safely invest

Sounds like you might need an emergency fund. I'd put it in high yield savings and/or CDs.
by retiredjg
Thu Dec 14, 2017 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Tax-Efficient Fund Placement
Replies: 6
Views: 593

Re: Tax-Efficient Fund Placement

I'm in a different situation (retired) but my TSP is completely filled with bonds - a mix of G and F Funds. It's fine. My stocks are at in other accounts.

BTW, the VBMFX is equivalent to the F fund, not the G fund.
by retiredjg
Thu Dec 14, 2017 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Reached 50X annual spending. Now what?
Replies: 56
Views: 5518

Re: Reached 50X annual spending. Now what?

There is no "right" answer. Any of those numbers is reasonable. You have no need to take risk but you could tolerate risk if you want to. so it all boils down to "willingness". You've apparently been through market crashes before. If we have another mess like 2007 - 2009, how much would you be comfo...
by retiredjg
Thu Dec 14, 2017 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Should I recharacterize my Roth Contributions?
Replies: 8
Views: 493

Re: Should I recharacterize my Roth Contributions?

A couple of other factors to throw into the mix. If your income is low and you can lower it enough to get the saver's credit or the earned income credit (see Wiki) on your taxes, it might be worth re-characterizing. If you are just starting out and expect higher salaries later, leaving it in Roth ma...
by retiredjg
Wed Dec 13, 2017 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Variable Annuities / REITs
Replies: 11
Views: 740

Re: Vanguard Variable Annuities / REITs

I'd probably choose not to hold the extra REIT rather than hold it in taxable. If it were a necessary item for the portfolio, it would be different.
by retiredjg
Wed Dec 13, 2017 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Should I recharacterize my Roth Contributions?
Replies: 8
Views: 493

Re: Should I recharacterize my Roth Contributions?

In that case it is just a personal preference. If you have no other IRAs (except for Roth) and if you never expect to need the back door, and if you have or can get the money to pay the tax by tax day, I'd keep the Roth. If you never expect to need the back door, having tiRA is not a problem at all ...
by retiredjg
Wed Dec 13, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Should I recharacterize my Roth Contributions?
Replies: 8
Views: 493

Re: Should I recharacterize my Roth Contributions?

Have you even checked to see if your contribution to a tIRA would be deductible? It may not be if your joint income is high enough.
by retiredjg
Wed Dec 13, 2017 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA worth it?
Replies: 19
Views: 1209

Re: Backdoor Roth IRA worth it?

I would not roll the IRA into a high cost 401k. Put the money in a taxable account. Not quite as good as Roth IRA, but a good place for retirement money anyway. I would not use the back door with the current IRA in place. This means you will be paying tax at a higher rate than when you deferred the ...
by retiredjg
Wed Dec 13, 2017 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate between 401k with expensive fees + Vangaurd
Replies: 48
Views: 2922

Re: How to allocate between 401k with expensive fees + Vangaurd

Is there some problem I am overlooking between holding the vangaurd inter term tax exempt fund and the vangaurd total bond market index? You said tax exempt and total bond. I assume you mean tax-exempt in a taxable account and total bond in the Roth IRA. That's fine. Tax-exempt bonds are less diver...
by retiredjg
Wed Dec 13, 2017 3:42 pm
Forum: Investing - Theory, News & General
Topic: Should I get out of New York Long Term Tax Exempt (Munis) ?
Replies: 7
Views: 771

Re: Should I get out of New York Long Term Tax Exempt (Munis) ?

Something else to consider - the average duration of this fund is 6 - 10 years. That's not that "long".
by retiredjg
Wed Dec 13, 2017 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate between 401k with expensive fees + Vangaurd
Replies: 48
Views: 2922

Re: How to allocate between 401k with expensive fees + Vangaurd

If you mean the total bond will be in the Roth IRA, no...there is no "problem". You do not have the perfect set of choices. There are a number of ways you can mix and match and get something reasonable. What would be the least attractive (to me) would be having all your bond allocation in tax-exempt...
by retiredjg
Wed Dec 13, 2017 3:03 pm
Forum: Investing - Theory, News & General
Topic: Should I get out of New York Long Term Tax Exempt (Munis) ?
Replies: 7
Views: 771

Re: Should I get out of New York Long Term Tax Exempt (Munis) ?

Is there a shorter term tax-exempt bond for NY? If not, I'd probably keep it for the state tax benefits.

Remember that bonds do lose some value as interest rates go up, but they also start paying you more for the same reason - because interest rates have gone up.
by retiredjg
Wed Dec 13, 2017 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate between 401k with expensive fees + Vangaurd
Replies: 48
Views: 2922

Re: How to allocate between 401k with expensive fees + Vangaurd

What about checking to see if there is a stable value fund in the 401k? I would not fill a Roth IRA with bonds and I think that is what will happen with your limited annual contribution. As mentioned in earlier posts, I'd probably put 5% (half your allocation) in the Roth IRA. The other half could b...
by retiredjg
Wed Dec 13, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: Is Nationwide a good company?
Replies: 9
Views: 1044

Re: Is Nationwide a good company?

The test of a 457b plan is pretty much the cost of the funds (expense ratios). To decide which is better, compare the expense ratios of similar basic funds.

Before you have 2 separate 457b plans going, be sure there is not some added administrative fee for each one.
by retiredjg
Wed Dec 13, 2017 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Variable Annuities / REITs
Replies: 11
Views: 740

Re: Vanguard Variable Annuities / REITs

I have suggested this avenue many times for people who feel like they just MUST have some extra REIT. I don't know if it is a good idea or not, but I believe it is probably better than putting REIT in taxable or paying a very high ER for a non-Vanguard REIT in a 401k or in an IRA. My understanding i...
by retiredjg
Wed Dec 13, 2017 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Conflicting goals, and limited income
Replies: 25
Views: 2265

Re: Conflicting goals, and limited income

I am okay with some wild swings in my taxable account honestly. That goal is very far away, but with you said below regarding choosing retirement to be funded first or the home I would rather choose the retirement account ( TSP) be maxed before I start saving for my custom home project. To me, that...
by retiredjg
Wed Dec 13, 2017 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Helping employer setup after-tax 401K contributions (mega backdoor): How do we allow employees to convert to Roth?
Replies: 12
Views: 1363

Re: Helping employer setup after-tax 401K contributions (mega backdoor): How do we allow employees to convert to Roth?

It is possible your and your TPA administrator were talking apples and oranges. Or the TPA administrator was wrong. Or your plan does not use separate accounts (possible but most do these days). It is correct that you cannot withdraw your elective deferrals without penalty prior to age 59.5 without ...
by retiredjg
Tue Dec 12, 2017 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: What to do after losing $117k in stock market?
Replies: 118
Views: 11603

Re: What to do after losing $117k in stock market?

Maybe I didn't read it close enough, but I took our original poster's "mistakes" to result from what s/he THOUGHT was investing and from doing the things that everybody "knows" investing is all about. That does not indicate any sort of problem or addiction, just a lack of knowledge of what proper in...
by retiredjg
Tue Dec 12, 2017 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Converting Part of 401K to IRA and then to Roth?
Replies: 8
Views: 551

Re: Converting Part of 401K to IRA and then to Roth?

The law allows you to do it over time. You'll have to read your plan summary statement or ask someone who knows - your plan might allow unlimited distributions, a certain number a year, or just one and done.
by retiredjg
Tue Dec 12, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: FEHB and Medicare
Replies: 8
Views: 618

Re: FEHB and Medicare

I'm glad I have both. I do pay more for insurance than some people, but I don't pay any medical bills. That suits me fine. I've never had Kaiser, but have always heard good things. If she likes Kaiser, I think it is best to have both unless she simply cannot afford the premiums. Since you didn't men...
by retiredjg
Tue Dec 12, 2017 9:27 am
Forum: Investing - Help with Personal Investments
Topic: RMD and Roth IRA conversions
Replies: 8
Views: 922

Re: RMD and Roth IRA conversions

Why is it that when retired you can start withdrawing large amounts from your 401k and start putting the money into the Roth IRA. Over the working limits. I see this is a way to reduce RMD's when you reach 70.5 yrs. You don't have to be retired to do this. You can convert as much as you want any ti...
by retiredjg
Tue Dec 12, 2017 9:08 am
Forum: Investing - Help with Personal Investments
Topic: What to do after losing $117k in stock market?
Replies: 118
Views: 11603

Re: What to do after losing $117k in stock market?

Welcome to the forum! Just about everybody here has had some permanent losses. Some of us have done stupid stuff. Some have paid "advisors" for poor advice. And, like you, some have gambled and lost. Time to dust yourself off and start over. This time, invest rather than gamble. Read the links alrea...
by retiredjg
Tue Dec 12, 2017 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Conflicting goals, and limited income
Replies: 25
Views: 2265

Re: Conflicting goals, and limited income

So, since there is a bond allocation I would want the funds in a tax deferred account? Typically I cant withdraw from a 401k. The only thing I can withdraw from would be a Roth IRA if I was going 80/20. Im still confused on how I would be able to get away with that Asset Allocation compared to if i...
by retiredjg
Mon Dec 11, 2017 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Minimize Expense Ratios or Bonds in 401(k)?
Replies: 10
Views: 653

Re: Minimize Expense Ratios or Bonds in 401(k)?

The fixed income fund closely tracks the performance of the benchmark. Over the past 10 years, it is actually averaging a return 20 basis points higher than the benchmark. If I go this route, I am planning to put my entire bond allocation in my 401k. It feels wrong to willingly pay a higher expense...
by retiredjg
Mon Dec 11, 2017 4:26 pm
Forum: Personal Consumer Issues
Topic: detergent without non-recyclable packaging?
Replies: 28
Views: 1562

Re: detergent without non-recyclable packaging?

I was going to suggest the Seventh Generation 'bottles' made out of recycled cardboard and newspaper . However, upon closer examination, it looks like the outer 'bottle' is only for shape and stability. The actual detergent is inside in a plastic pouch :oops: The outside cardboard mold can be recyc...
by retiredjg
Mon Dec 11, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1902

Re: When to start taking distributions from 401K

Now my question still stands should I pull the 50K out now in 2017 or 2018 and just pay the house off or take the money gradually out of the roll over? What are your thoughts on that score? I've continued to think about this. Regarding income in 2018.....Your 2016 income is a done deal and it deter...
by retiredjg
Mon Dec 11, 2017 8:07 am
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2507

Re: What mix of intermediate and short term bonds?

I don't know the answer to your question, but I think it is important for people to realize that an intermediate term bond FUND may contain individual bonds of all terms - short, intermediate, and long term. Like total bond market - all those bonds are not intermediate term. It contains bonds of al...
by retiredjg
Mon Dec 11, 2017 7:06 am
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 67
Views: 2991

Re: Stocks always in taxable for tax efficient investing?

[*]Given the above to points, isn't it reasonably straightforward to calculate which placement should yield the most after tax return? In a sense, I believe this was done in a general manner back in early Boglehead times. It is likely discussed in the original book which I don't have any more. I wa...
by retiredjg
Mon Dec 11, 2017 6:21 am
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2507

Re: What mix of intermediate and short term bonds?

I don't know the answer to your question, but I think it is important for people to realize that an intermediate term bond FUND may contain individual bonds of all terms - short, intermediate, and long term. Like total bond market - all those bonds are not intermediate term. It contains bonds of al...
by retiredjg
Sun Dec 10, 2017 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Converting Part of 401K to IRA and then to Roth?
Replies: 8
Views: 551

Re: Converting Part of 401K to IRA and then to Roth?

If your old plan allows a partial withdrawal, there is no reason to move from 401k--->IRA--->Roth IRA. You can move money directly from the 401k to the Roth IRA. This way you would not get "caught" with any unconverted money in IRA if you want to use the back door. Understood, however my goal was t...
by retiredjg
Sun Dec 10, 2017 5:10 pm
Forum: Investing - Theory, News & General
Topic: Schwab 25% Cheaper than Vanguard?
Replies: 13
Views: 1424

Re: Schwab 25% Cheaper than Vanguard?

Enough to make a meaningful difference?
by retiredjg
Sun Dec 10, 2017 5:08 pm
Forum: Investing - Theory, News & General
Topic: Back door ROTH eligibility
Replies: 11
Views: 812

Re: Back door ROTH eligibility

Well, it is NOT beneficial if you have other IRAs - SIMPLE, SEP, Rollover, etc. Roth IRA is OK.
by retiredjg
Sun Dec 10, 2017 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Converting Part of 401K to IRA and then to Roth?
Replies: 8
Views: 551

Re: Converting Part of 401K to IRA and then to Roth?

If your old plan allows a partial withdrawal, there is no reason to move from 401k--->IRA--->Roth IRA. You can move money directly from the 401k to the Roth IRA. This way you would not get "caught" with any unconverted money in IRA if you want to use the back door.
by retiredjg
Sun Dec 10, 2017 2:30 pm
Forum: Investing - Theory, News & General
Topic: How are 401k withdrawals taxed when you retire?
Replies: 12
Views: 1578

Re: How are 401k withdrawals taxed when you retire?

Whatever you take out of your 401k will be taxed at your ordinary tax rate. Your ordinary tax rate is likely to be less in retirement than while working. A person making that much money should almost always be using tax-deferred 401k, to the max. https://www.bogleheads.org/wiki/Traditional_versus_Roth
by retiredjg
Sun Dec 10, 2017 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate between 401k with expensive fees + Vangaurd
Replies: 48
Views: 2922

Re: How to allocate between 401k with expensive fees + Vangaurd

You are already diversified. Don't need to do anything.
by retiredjg
Sun Dec 10, 2017 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1902

Re: When to start taking distributions from 401K

And if you are wondering why my estimate is not 4% of your assets....it's because you are already paying out over 1% to your advisor. That's part of your 4% so you only get to use about 3% for yourself.

Tough idea to swallow.
by retiredjg
Sun Dec 10, 2017 2:17 pm
Forum: Investing - Theory, News & General
Topic: Schwab 25% Cheaper than Vanguard?
Replies: 13
Views: 1424

Re: Schwab 25% Cheaper than Vanguard?

Is there a meaningful difference between the funds? Unlikely, but if held in a taxable account, the Vanguard fund is likely to be more tax efficient because of Vanguard's fund structure. SCHB is an ETF. Yes it is. Thanks for catching that. I wonder if Schwab's ETF is more or less tax-efficient than...
by retiredjg
Sun Dec 10, 2017 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Question- 401K Rollover to IRA or Keep in 401K
Replies: 4
Views: 224

Re: Retirement Question- 401K Rollover to IRA or Keep in 401K

He would like to try to improve on the 1.9 percent so he at least stays above inflation plus a little extra. The question is whether or not he should move his 401K money to an IRA which will allow him to pick and choose where to take the RMD's. He is wary about investing in a hot stock market now i...
by retiredjg
Sun Dec 10, 2017 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: New Young Investor: Roth IRA: Mutual Funds, ETFs, or Index?
Replies: 8
Views: 488

Re: New Young Investor: Roth IRA: Mutual Funds, ETFs, or Index?

I too suggest a target fund, but there is another possibility if you are interested.

Consider what you have in your 403b. Is there a fund there that you could buy at lower cost outside the 403b? If so, you could put that into your Roth IRA for lower overall portfolio cost.
by retiredjg
Sun Dec 10, 2017 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1902

Re: When to start taking distributions from 401K

FiveK wrote:
Sun Dec 10, 2017 1:47 pm
Spend with a clear conscience and zero heart burn!
Just don't spend too much. :happy

You could easily pull $20-25k from your investments every year without being reckless. Of course, you may not want to if it puts you over the IRMAA line.
by retiredjg
Sun Dec 10, 2017 1:25 pm
Forum: Investing - Theory, News & General
Topic: Schwab 25% Cheaper than Vanguard?
Replies: 13
Views: 1424

Re: Schwab 25% Cheaper than Vanguard?

Is there a catch? Probably not directly, but it seems like a marketing gimmick to me. Is there a meaningful difference between the funds? Unlikely. The real question is whether that "25% lower" is meaningful. If you have $100,000 invested, the difference will be $10 a year. That is certainly no rea...