Search found 30762 matches

by retiredjg
Sun Dec 17, 2017 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: baffle about Roth IRA contribution using turbo tax
Replies: 19
Views: 751

Re: baffle about Roth IRA contribution using turbo tax

Sorry if I am confusing you and also confusing myself :( Gross amount income is $90000 On tax return, I will contribute $6500 to a Roth IRA When figuring out how much tax I need to pay, will the taxable income be based on $90000 or $96500? I thought it would be $96500 as I read that with Roth IRA y...
by retiredjg
Sun Dec 17, 2017 1:40 pm
Forum: Investing - Theory, News & General
Topic: Do you have bonds in Roths as a retiree?
Replies: 17
Views: 760

Re: Do you have bonds in Roths as a retiree?

By the way, there is no problem having stocks in your tax-deferred accounts. In fact, it would be hard to avoid unless you are not using all the tax-deferred space you have available.
by retiredjg
Sun Dec 17, 2017 1:34 pm
Forum: Investing - Theory, News & General
Topic: Do you have bonds in Roths as a retiree?
Replies: 17
Views: 760

Re: Do you have bonds in Roths as a retiree?

I am retired and have some bonds in Roth IRA. I started out with just stocks there, but needed to add a bond fund to make rebalancing easier. It started out just being a small amount, but has grown a lot this year because the market has caused my stocks to need a few haircuts. :D My Roth is mostly s...
by retiredjg
Sun Dec 17, 2017 1:26 pm
Forum: Personal Consumer Issues
Topic: New job offer - background check
Replies: 68
Views: 2192

Re: New job offer - background check

Another option is not say anything and if it comes up, play it off as I forgot all about that, it was almost 15 year ago and wasn't ever an issue. This would be dumb. You'd be telling your prospective employer that you don't tell the truth. If I were the hiring official, that alone would be enough ...
by retiredjg
Sun Dec 17, 2017 11:54 am
Forum: Investing - Theory, News & General
Topic: IRA for SAHM whose husband exceeds income limits?
Replies: 6
Views: 665

Re: IRA for SAHM whose husband exceeds income limits?

There is information in the wiki (link posted above). On that Wiki page, there are links to outside webpages. Here's one that is especially good. https://thefinancebuff.com/the-backdoor-roth-ira-a-complete-how-to.html But most of all, download Form 8606 from the internet and pencil through the steps...
by retiredjg
Sun Dec 17, 2017 10:58 am
Forum: Personal Finance (Not Investing)
Topic: What are the negatives of inheriting a Roth IRA - if any? (Non Spousal)
Replies: 10
Views: 710

Re: What are the negatives of inheriting a Roth IRA - if any? (Non Spousal)

I don't know of any downside for them. I'm not sure you have the options right though. They don't get to let it ride indefinitely. If they do not take the RMDs as scheduled, they must take it all out at 5 years. The other option is to take RMDs. That's how I understand it anyway. http://fairmark.com...
by retiredjg
Sat Dec 16, 2017 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: investing strategy and allocation - advice solicited
Replies: 11
Views: 549

Re: investing strategy and allocation - advice solicited

The I Fund will soon be transitioning to an all world index - it will include emerging markets and Canada and small caps. This was just announced recently. Excellent news :D , where did you see that? Not sure. I might have seen it here. Or on some fed news blog.... Not very helpful, huh? ETA....I t...
by retiredjg
Sat Dec 16, 2017 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: When to move into bonds
Replies: 37
Views: 2562

Re: When to move into bonds

There is a time to make money. And there is a time to preserve what you have made...so that you actually have something when you retire. If you don't, you may not retire when you want or you may have a difficult retirement. You are entering the preservation stage. On Monday, I'd shift your AA from 1...
by retiredjg
Sat Dec 16, 2017 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes on 401(k)withdrawl
Replies: 11
Views: 842

Re: Taxes on 401(k)withdrawl

Does it actually work that way with a 401k?

When I withdraw from my IRA, I get to choose a percentage to withhold. That is pretty easy. Hard to imagine withholding being based any other way.
by retiredjg
Sat Dec 16, 2017 4:20 pm
Forum: Personal Consumer Issues
Topic: Reminder to Use the Bogleheads' Amazon Link
Replies: 7
Views: 694

Re: Reminder to Use the Bogleheads' Amazon Link

Shameless bump for last minute shoppers. :wink:
by retiredjg
Sat Dec 16, 2017 4:17 pm
Forum: Forum Issues and Administration
Topic: Thank you Admins
Replies: 28
Views: 2305

Re: Thank you Admins

You're welcome, it's much appreciated. And here's something just for you, LadyGeek. :D To some the glass is half empty. To some the glass is half full. To an engineer, it's twice as big as it needs to be. To an entrepreneur, it's always refillable. But back to the subject....the moderation here is ...
by retiredjg
Sat Dec 16, 2017 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: investing strategy and allocation - advice solicited
Replies: 11
Views: 549

Re: investing strategy and allocation - advice solicited

The I Fund will soon be transitioning to an all world index - it will include emerging markets and Canada and small caps. This was just announced recently.
by retiredjg
Sat Dec 16, 2017 1:18 pm
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: 15
Views: 1541

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

The only drawback I can think of for the mega-backdoor Roth is the 5 year clock on access to the contributions. I believe the 5 year clock is on each contribution individually. If you know you won't need access to the money for 5 years, then there is no downside and a lot of advantages. The 5 tax y...
by retiredjg
Sat Dec 16, 2017 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Recommendations and Adjustments
Replies: 4
Views: 390

Re: Portfolio Recommendations and Adjustments

Regarding your EJ account. The old way was to sell people funds that have a front end load and higher expense ratios than index funds have. Apparently there was also a "small" account management fee. This is how they made their money. The new way (their approach to following the fiduciary rules) is ...
by retiredjg
Sat Dec 16, 2017 9:21 am
Forum: Investing - Theory, News & General
Topic: IRA for SAHM whose husband exceeds income limits?
Replies: 6
Views: 665

Re: IRA for SAHM whose husband exceeds income limits?

She can make a contribution (non-deductible because of his income) to tIRA and convert it to Roth IRA. This is the back door method of getting money into Roth IRA. It does not work well if she has any other IRA (other than Roth IRA) in her name because the other IRA has to be pro-rated. He can also ...
by retiredjg
Sat Dec 16, 2017 8:57 am
Forum: Investing - Help with Personal Investments
Topic: investing strategy and allocation - advice solicited
Replies: 11
Views: 549

Re: investing strategy and allocation - advice solicited

Your retirement money is at about 80% stocks and 20% bonds. That is a reasonable number for people in their late 30's.

The 529's are looked at separately because they have a different time horizon.

You are adequately diversified. I don't see any reason to change anything.
by retiredjg
Sat Dec 16, 2017 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion ... Timing
Replies: 19
Views: 1613

Re: Roth Conversion ... Timing

Forbes is talking about eliminating the opportunity for taxpayers to recharacterize Roth IRA conversions. I agree but isn't Roth conversion what this whole thread is about? Hence the warning to the OP that a strategy of overconverting and then recharacterizing back to optimum might be at risk. That...
by retiredjg
Sat Dec 16, 2017 7:22 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA worth it?
Replies: 21
Views: 1670

Re: Backdoor Roth IRA worth it?

Your IRA does not affect your spouse's ability to use the back door.

If your spouse has no IRA, that contribution could be recharacterized to a non-deductible contribution to tIRA and then converted to Roth. Or it may be easier to just forget the whole thing and put it in taxable.
by retiredjg
Sat Dec 16, 2017 7:05 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion ... Timing
Replies: 19
Views: 1613

Re: Roth Conversion ... Timing

There is more to the story. Forbes is talking about eliminating the opportunity for taxpayers to recharacterize Roth IRA conversions.

That is not the same as eliminating recharacterizations - a necessary step in fixing contribution mistakes.
by retiredjg
Sat Dec 16, 2017 6:46 am
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 89
Views: 4415

Re: Stocks always in taxable for tax efficient investing?

Where should the bonds go if kehyler's retirement tax bracket is 25%? 15%? Higher? (I.e. How much does this affect where bonds should go?) In all tax brackets, I'd put the bonds in the 401k unless the bond choices were just terrible. Then I might put part of the bonds in one or both of the other ac...
by retiredjg
Sat Dec 16, 2017 6:36 am
Forum: Investing - Help with Personal Investments
Topic: IRA for 2016 & Need some assistance with 401K funds changed by employer
Replies: 33
Views: 2143

Re: IRA for 2016 & Need some assistance with 401K funds changed by employer

Many here would be concerned about that large an allocation to the company stock. It puts you in the position of losing both income and a significant part of your retirement from one event. Lowering the company stock to 0% to 5% is worth considering.
by retiredjg
Fri Dec 15, 2017 7:31 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 89
Views: 4415

Re: Stocks always in taxable for tax efficient investing?

Second, the issue in the thread is not if tax deferred accounts are better than taxable accounts, but where to keep stocks and bonds when one has both and can't put all in a tax-advantaged account. Yes, but....the original poster then went on to ask more questions. For example, OP asked for example...
by retiredjg
Fri Dec 15, 2017 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: PLEASE HELP: Setting up new individual 401k
Replies: 13
Views: 527

Re: PLEASE HELP: Setting up new individual 401k

I think most people here would suggest that you DO set up the individual 401k plans - at Vanguard or Fidelity. Or maybe Schwab. Vanguard does not allow you to roll in money from IRA. Fidelity does and this is considered a benefit by many. I don't know what Schwab does. I think most people here would...
by retiredjg
Fri Dec 15, 2017 6:22 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion ... Timing
Replies: 19
Views: 1613

Re: Roth Conversion ... Timing

Can't open it - it says the server may be too busy. I'll try later.
by retiredjg
Fri Dec 15, 2017 6:12 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 89
Views: 4415

Re: Stocks always in taxable for tax efficient investing?

The most common example is comparing tax-deferred to Roth. Let's start with $1,000, the 25% tax bracket, and a growth rate of doubling. Tax deferred: You invest your $1k, it doubles to $2k, and is taxed at 25% as you take it out of the tax-deferred account. You pay $500 in tax and end up with $1,500...
by retiredjg
Fri Dec 15, 2017 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) vs. Roth IRA
Replies: 5
Views: 415

Re: 401(k) vs. Roth IRA

Welcome to the forum. You could be saying several different things. I think you mean you are contributing an unknown amount to the 401k and you have an additional $7k that you could put in the 401k or into Roth IRA (the extra going to taxes) and you want help on which to use. If the 401k is low cost...
by retiredjg
Fri Dec 15, 2017 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion ... Timing
Replies: 19
Views: 1613

Re: Roth Conversion ... Timing

Just beware that the recharacterization option was removed in both versions of the tax reform bill. While nothing has been enacted yet (therefor it's not on-topic for board discussions), you should pay attention to those changes if/when a bill is passed if you think recharacterization is something ...
by retiredjg
Fri Dec 15, 2017 4:59 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 89
Views: 4415

Re: Stocks always in taxable for tax efficient investing?

I think what you care is minimizing the total amount of tax paid, which is rate*taxable income. It is not as simple as that. Tax paid is not the right metric either. Money you have in the end is the right metric. There are some very simple examples of paying more tax but ending up with more money i...
by retiredjg
Fri Dec 15, 2017 4:56 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 89
Views: 4415

Re: Stocks always in taxable for tax efficient investing?

I'm beginning to question the rule of thumb that stocks should always be in taxable account. There is no such rule of thumb. I don't know where people are getting this idea...you are certainly not the first. If it is from our Wiki page, it needs to be edited. The rule of thumb is more like... "Fill...
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: 1073

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: 1073

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: 1073

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: 19
Views: 1613

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: 15
Views: 1541

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: 15
Views: 1541

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: 21
Views: 1670

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: 803

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: 610

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: 5898

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: 520

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: 777

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: 520

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: 520

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: 21
Views: 1670

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: 2958

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: 798

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: 2958

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...