Search found 30532 matches

by retiredjg
Wed Nov 22, 2017 9:17 pm
Forum: Personal Consumer Issues
Topic: Best vehicle for seniors?
Replies: 57
Views: 3263

Re: Best vehicle for seniors?

My Outback was a 2014 so the newer ones may be higher. However, from riding in a friend's new Outback, I'd say it is still a car you need to stand up from. And squat to get into. All I know is that every day I'm so happy to simply step out of my current vehicle - no need to stand up to get out or s...
by retiredjg
Wed Nov 22, 2017 6:18 pm
Forum: Personal Consumer Issues
Topic: Best vehicle for seniors?
Replies: 57
Views: 3263

Re: Best vehicle for seniors?

My Outback was a 2014 so the newer ones may be higher. However, from riding in a friend's new Outback, I'd say it is still a car you need to stand up from. And squat to get into. All I know is that every day I'm so happy to simply step out of my current vehicle - no need to stand up to get out or sq...
by retiredjg
Wed Nov 22, 2017 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Rollover and Backdoor Roth Question
Replies: 5
Views: 291

Re: Reverse Rollover and Backdoor Roth Question

Sounds like a plan!

We have heard in the past that rolling from a 401k at Fido to an IRA at Fido is very quick. It is good to hear the reverse is also very quick. Good luck and let is know how it works out for you. :happy
by retiredjg
Wed Nov 22, 2017 5:11 pm
Forum: Personal Consumer Issues
Topic: December 22 - Jan 1 vacation
Replies: 13
Views: 642

Re: December 22 - Jan 1 vacation

Florida Keys?
by retiredjg
Wed Nov 22, 2017 5:01 pm
Forum: Personal Consumer Issues
Topic: Best vehicle for seniors?
Replies: 57
Views: 3263

Re: Best vehicle for seniors?

That is an odd statement. Forester and Outback are not sedans and Forester I think was rated the top model for ease of entry and exit. I certainly find the Outback very good on that as with most CUV designs today. It may be odd, but it was an Outback I got rid of before owning it even a year. I lov...
by retiredjg
Wed Nov 22, 2017 4:51 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA Contributions: Still make sense for us?
Replies: 10
Views: 539

Re: Roth IRA Contributions: Still make sense for us?

Ahhhh, ok! A different interpretation of the word "shouldn't" in "shouldn't be contributing to Roth IRA". Meaning "you are not eligible". And I agree, that would be correct. With very large pre-take home expenditures (more than 2 401ks, some expensive health insurance, maybe other things we don't kn...
by retiredjg
Wed Nov 22, 2017 3:30 pm
Forum: Personal Consumer Issues
Topic: Best vehicle for seniors?
Replies: 57
Views: 3263

Re: Best vehicle for seniors?

She drove a Honda Element (with their version of AWD), which she really enjoyed, mostly for its trunk space, although I don't think it's a particularly good car for someone her age, who no longer commutes to work, doesn't do road trips, nor does she have dogs or other things to keep in the back. 90...
by retiredjg
Wed Nov 22, 2017 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Question - Deferred Compensation Plan
Replies: 1
Views: 183

Re: Question - Deferred Compensation Plan

This would not interest me. You may have already seen this information, but maybe others have not. In particular, what if you leave the company prior to retirement? You might be forced to take distributions at a time when your tax rate is still high. Not to mention....I would not have my retirement ...
by retiredjg
Wed Nov 22, 2017 2:43 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA Contributions: Still make sense for us?
Replies: 10
Views: 539

Re: Roth IRA Contributions: Still make sense for us?

This is coming up because a friend told me "Based on your income you should not be contributing to a Roth IRA" Your friend is confused or you miscommunicated. What your friend probably means is that "based on your income you should not be contributing to Roth 401k". That would be correct and that i...
by retiredjg
Wed Nov 22, 2017 2:20 pm
Forum: Investing - Theory, News & General
Topic: DISTRIBUTIONS
Replies: 9
Views: 1008

Re: DISTRIBUTIONS

I do Roth conversions, but I pay the tax with money that doesn't come from the IRA. I've seen this sentiment expressed several times on this forum and elsewhere. Is the consensus that it's not worth doing Roth conversions if one has to pay the taxes from the IRA? No, there is no such consensus. The...
by retiredjg
Wed Nov 22, 2017 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: [Help with 401k, Backdoor Roth]
Replies: 10
Views: 536

Re: [Help with 401k, Backdoor Roth]

So it sounds like she has a total of $16,500 in deductible contributions, $5,500 in non-deductible contributions from this year, and an unknown amount of earnings (let's just say $2k for the sake of discussion). If she converts the entire $24k to Roth IRA, she will pay tax on $18,500 at whatever you...
by retiredjg
Wed Nov 22, 2017 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Any need for professional tax preparer?
Replies: 10
Views: 603

Re: Any need for professional tax preparer?

I don't see a need for a professional either. Income in retirement is not difficult. It's just different. If you are really insecure, use two different tax programs the first year and see if they prompt you to think of different things. It seems unlikely that two different software packages would bo...
by retiredjg
Wed Nov 22, 2017 11:18 am
Forum: Investing - Help with Personal Investments
Topic: retirement portfolio
Replies: 6
Views: 628

Re: retirement portfolio

However, I am thinking of transferring all my funds to Vanguard. My goal is to maintain my principal and live off of income from my investments. I am planning that I can get a return of 4%. This is probably not your best choice. Living off the income is difficult to achieve unless you are very weal...
by retiredjg
Wed Nov 22, 2017 10:54 am
Forum: Investing - Help with Personal Investments
Topic: How do you define success in your life?
Replies: 46
Views: 1685

Re: How do you define success in your life?

Success in my life was having 2 careers that I loved. Everyone should be so fortunate. :happy
by retiredjg
Wed Nov 22, 2017 9:24 am
Forum: Investing - Theory, News & General
Topic: DISTRIBUTIONS
Replies: 9
Views: 1008

Re: DISTRIBUTIONS

It appears you might be in the top of the 15% bracket or maybe lower 25% bracket now. Your RMDs are going to be large - maybe $200k to start with, going higher as you age. This is going to push you (as a couple) into the 28% bracket and maybe higher in your 80's. When one dies, the survivor may be p...
by retiredjg
Wed Nov 22, 2017 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Check my portfolio
Replies: 4
Views: 445

Re: Check my portfolio

Looks like you are picking funds before planning your overall portfolio. It also looks like you are planning to skip using a retirement plan at work. If you have one available, the plan at work is the place to start. First, you look at the choices available at work. After picking the best (lowest co...
by retiredjg
Wed Nov 22, 2017 8:43 am
Forum: Personal Finance (Not Investing)
Topic: [Help with 401k, Backdoor Roth]
Replies: 10
Views: 536

Re: [Help with 401k, Backdoor Roth]

Haven't decided yet what to do with DW's tIRA. Mostly will do a Rith conversion of the whole tIRA and take the tax hit... Any suggestions? Don't want the hassle of keeping track of non-deductible contributions to tIRA considering that we might stay in the higher income bracket for the next few year...
by retiredjg
Wed Nov 22, 2017 8:29 am
Forum: Investing - Help with Personal Investments
Topic: FTIPX in tIRA, any concern about foreign tax?
Replies: 5
Views: 284

Re: FTIPX in tIRA, any concern about foreign tax?

Welcome to the forum!

Agree with the others - there is no problem with holding Fidelity's International Index in an IRA.
by retiredjg
Tue Nov 21, 2017 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Best Taxable Account Option - Vanguard Core Bond, REIT, or Global Wellington
Replies: 9
Views: 759

Re: Question about Best Taxable Account Option - Vanguard Core Bond, REIT, or Global Wellington

Yes I'm making maximum use of all tax-advantaged space. Is your tax-advantaged space limited? Like maybe you don't have a 401k? Or are you saving so much that things no longer fit into the slots you had in mind? As almost always happens, I agree with livesoft - you may need to reevaluate and adjust...
by retiredjg
Tue Nov 21, 2017 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Vs Traditional IRA for Wife’s Accounts
Replies: 10
Views: 537

Re: Backdoor Roth Vs Traditional IRA for Wife’s Accounts

Thank you very much for the responses. I am surprised that people generally favored keeping he 401ks and doing backdoor roth. Won't the fees of three 401k's negate much of the benefit? In reading the responses, I don't see that anybody actually "favored" keeping the 401ks. It is simply one of the o...
by retiredjg
Tue Nov 21, 2017 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Best Taxable Account Option - Vanguard Core Bond, REIT, or Global Wellington
Replies: 9
Views: 759

Re: Question about Best Taxable Account Option - Vanguard Core Bond, REIT, or Global Wellington

None of those funds should be held in taxable. They are not tax-efficient. Well, you might get away with the bond fund in taxable if you are in a very low tax bracket. The funds you currently have in taxable - total stock and total international - are the best choices for a taxable account. Are you ...
by retiredjg
Tue Nov 21, 2017 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: [Help with 401k, Backdoor Roth]
Replies: 10
Views: 536

Re: [Help with 401k, Backdoor Roth]

This chart applies to your wife. https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work This chart applies to you. https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-...
by retiredjg
Tue Nov 21, 2017 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: [Help with 401k, Backdoor Roth]
Replies: 10
Views: 536

Re: [Help with 401k, Backdoor Roth]

Thanks. Now that I am having a 401(K) at work starting this year, my tIRA contribution for this year will become non-deductible. What happens to my DW's tIRA contribution for this year? She doesn't have an employer sponsored 401K? So can she continue to deduct her tIRA contribution? It depends on y...
by retiredjg
Tue Nov 21, 2017 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: [Help with 401k, Backdoor Roth]
Replies: 10
Views: 536

Re: [Help with 401k, Backdoor Roth]

3. In Oct 2017, I got a job which has a 401K and because of that our tIRA contributions became non-deductible This is only true if two things happen. First, you actually participate in the 401k (or your employer contributes) or there is a pension. Second, you are over certain income limits (differe...
by retiredjg
Tue Nov 21, 2017 11:16 am
Forum: Investing - Help with Personal Investments
Topic: My parents just received a large inheritance and I need to help them keep it
Replies: 12
Views: 1854

Re: My parents just received a large inheritance and I need to help them keep it

My thought is to put 6 months of expenses in a stable money market and put the rest in a three fund portfolio with Vanguard. 60% Total Bond Market, 20% Total US Stock, 20% Total International Stock. I want them to be able to retire completely in 5 years and live solely off of interest and not touch...
by retiredjg
Tue Nov 21, 2017 8:55 am
Forum: Investing - Help with Personal Investments
Topic: [Traditional to Roth IRA conversion - backdoor?]
Replies: 6
Views: 354

Re: [Traditional to Roth IRA conversion - backdoor?]

Thanks. So to state it correctly - She has an IRA currently comprised of $10K of pre-tax money (from a 401K rollover) and $10K of non-deductible contributions. She has a basis in the $10K of non-deductible contributions of $20K. (I'm having my accountant refile the 8606s from the first contribution...
by retiredjg
Tue Nov 21, 2017 8:10 am
Forum: Investing - Help with Personal Investments
Topic: Certified Financial Planner (CFP) fees
Replies: 17
Views: 1133

Re: Certified Financial Planner (CFP) fees

$10k per year (1%) would be common. I'd consider $3k a year reasonable. That's what Vanguard charges to set up and manage a low cost portfolio that you can later decide to manage on your own.
by retiredjg
Tue Nov 21, 2017 7:07 am
Forum: Investing - Help with Personal Investments
Topic: [Traditional to Roth IRA conversion - backdoor?]
Replies: 6
Views: 354

Re: [Traditional to Roth IRA conversion - backdoor?]

If she converts $20k in IRA to Roth IRA, she will not pay tax because there is a "basis" (already taxed money) of $20k. This assumes that the basis was documented on Form 8606 when the non-deductible contributions were made. If the Form was not done, that can be fixed but it must be fixed before doi...
by retiredjg
Mon Nov 20, 2017 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Spending Taxable to Zero during Retirement
Replies: 32
Views: 3310

Re: Spending Taxable to Zero during Retirement

Retired 10 years. My taxable account was small and I spent it within the first year or two (don't remember). I saw no reason to keep any in taxable. Now tapping the IRA each year and occasionally Roth IRA when I don't want to increase my taxable income any more for that year. Will likely do Roth con...
by retiredjg
Mon Nov 20, 2017 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Best Method To Correct Roth IRA Excess Contributions
Replies: 9
Views: 417

Re: Best Method To Correct Roth IRA Excess Contributions

You will get the 1099 in time for taxes. The form 5498 is usually sent out in May, after taxes are due. Not to worry, you don't need it for taxes. When tax time comes, be sure to report what you actually did - a contribution to tIRA which you did not deduct, followed by a Roth conversion. If you rep...
by retiredjg
Mon Nov 20, 2017 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Asset location in retirement (stocks)?
Replies: 9
Views: 718

Re: Asset location in retirement (stocks)?

I started out with all stocks in my Roth IRA, but found that I needed a bond fund in there in order to rebalance sometimes (give my tilts a haircut when they grow beyond my target). The bond fund is now about 1/4th of the Roth account - the tilts are growing fast enough that they need to be trimmed ...
by retiredjg
Mon Nov 20, 2017 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Correcting Rollover Error
Replies: 2
Views: 183

Re: Correcting Rollover Error

I don't have this experience, but here is my understanding of what to do. The 401k is not allowed to accept the already taxed money. In fact you may have even signed something that certifies that all the money was pre-tax. Call them, tell them you made a mistake, tell them exactly what you did (acci...
by retiredjg
Mon Nov 20, 2017 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options
Replies: 20
Views: 976

Re: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options

Thanks for the kind words! It is a somewhat radical approach for Bogleheads, but I like it. Actually a large number of people here tilt to small and/or value. In fact there was a time when dozens of "tilting" threads were going all the time. The pendulum has swung back toward the 3 fund portfolio l...
by retiredjg
Mon Nov 20, 2017 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA Phase Out
Replies: 15
Views: 1474

Re: Help with Roth IRA Phase Out

Not sure what this means. Form 8606 does keep track of your IRA basis and yes, it accumulates. But apparently you don't have any basis other than what you have contributed so far this year. Possibly the OP knew there was no basis in the IRAs he converted in 2011 & 2012, so the 8606 was just skipped...
by retiredjg
Mon Nov 20, 2017 8:24 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services/Portfolio Review
Replies: 45
Views: 3269

Re: Vanguard Personal Advisor Services/Portfolio Review

I do have the option of rolling over some of my 401k (and keeping some with my employer after I retire in case I need access with "Rule of 55") to help balance out shelf space of accounts regarding taxable vs. tax advantaged. Ultimately, after 59.5, this is what will happen anyways. Maybe I'm misun...
by retiredjg
Mon Nov 20, 2017 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA Phase Out
Replies: 15
Views: 1474

Re: Help with Roth IRA Phase Out

Hi, Thanks for the help. I went over my tax records, and it seems I had not filed 8606 for any of the tax year. Apparently I have never made non-deductible IRA contributions. But I had done Traditional to Roth conversion in 2011 & 2012 (and I had paid the required tax then). As per your pointers, I...
by retiredjg
Mon Nov 20, 2017 7:21 am
Forum: Investing - Help with Personal Investments
Topic: Need help to understand tIRA rIRA conversion
Replies: 27
Views: 1866

Re: Need help to understand tIRA rIRA conversion

loklav wrote:
Sun Nov 19, 2017 9:56 pm
Actually, I still have my previous employer 401k (@Fidelity), and there are still $500 on it... So does it mean I could rollback :) my tIRA in my previous employer 401k?
This is completely up to the old plan. Some do this and some don't.
by retiredjg
Sun Nov 19, 2017 8:25 pm
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 133
Views: 9875

Re: Is holding bonds now dangerous?

Not sure our original poster - unclelonghair - is still with us in this thread....
by retiredjg
Sun Nov 19, 2017 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services/Portfolio Review
Replies: 45
Views: 3269

Re: Vanguard Personal Advisor Services/Portfolio Review

rivercityrivercity - I am curious as to why the advisor counseled you against keeping two to three years of expenses in cash on hand. It was my impression that once retired, you wanted to do this so that you could try to avoid having to sell during a market downturn. Have I missed the boat? A lot o...
by retiredjg
Sun Nov 19, 2017 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Rollover and Backdoor Roth Question
Replies: 5
Views: 291

Re: Reverse Rollover and Backdoor Roth Question

I'm also wondering if I have to convert my investments into cash now or if they'll change them automatically once it transfers. You don't have to change your investments to cash. I'm suggesting that you change your basis to cash so that you can convert exactly the same amount as your basis. It is n...
by retiredjg
Sun Nov 19, 2017 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: Best Method To Correct Roth IRA Excess Contributions
Replies: 9
Views: 417

Re: Best Method To Correct Roth IRA Excess Contributions

I'll call Vanguard tomorrow to get things in motion with a recharacterization to an IRA then once that's complete immediately backdoor convert that to my Roth. Thanks again! Terminology is important. What you are going to do is convert it to Roth. In the meantime, download an old Form 8606 and penc...
by retiredjg
Sun Nov 19, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options
Replies: 20
Views: 976

Re: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options

Jags4186 wrote:
Sun Nov 19, 2017 3:43 pm
That isn’t TrevH’s portfolio, anyway. You need a int’l LCV fund which Vanguard does not offer in ETF form. Even in their mutual funds they only offer an active fund, VTRIX.
:oops: Good catch. Took awhile for someone to notice!
by retiredjg
Sun Nov 19, 2017 3:33 pm
Forum: Investing - Theory, News & General
Topic: Is investing with Vanguard a tragedy of the commons?
Replies: 41
Views: 4561

Re: Is investing with Vanguard a tragedy of the commons?

I agree with jhfenton that Vanguard is not a tragedy of the commons situation at all. Imagine a community park that is not maintained by any authority. It is commonly owned by the community and people use it and take care of it how they want. Nobody bothers to cut the grass regularly or empty trash ...
by retiredjg
Sun Nov 19, 2017 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Rollover and Backdoor Roth Question
Replies: 5
Views: 291

Re: Reverse Rollover and Backdoor Roth Question

You can convert any amount you want. If you drain off everything except $27.5, you can convert it with no tax. If you leave $30k in there and convert it, you will pay tax on the extra $2,500. To make things easy, you can put exactly $27.5 into money market so that amount does not get larger or small...
by retiredjg
Sun Nov 19, 2017 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Sale of Home Proceeds - Net Loss & No plans to purchase for 2 years
Replies: 6
Views: 624

Re: Sale of Home Proceeds - Net Loss & No plans to purchase for 2 years

I think you have only three good choices. 1) Put all of the $400k into something safe - no more aggressive than a short term tax-exempt bonds - and use it all on your house when you get one. You may make less money, but your next house is assured when you are ready. 2) Set aside $100k to $200k as yo...
by retiredjg
Sun Nov 19, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Best Method To Correct Roth IRA Excess Contributions
Replies: 9
Views: 417

Re: Best Method To Correct Roth IRA Excess Contributions

Have them re-characterize the Roth contribution (and it's earnings) to a non-deductible IRA contribution. Wait a day or two and convert it all to Roth IRA. You will pay tax on the earnings because they have not been taxed before. There is no penalty. This only works right if you don't have other mon...
by retiredjg
Sun Nov 19, 2017 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?
Replies: 15
Views: 808

Re: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?

Alan S. wrote:
Sun Nov 19, 2017 2:23 pm
So, do NOT file an 8606 in this situation.
Seems to me a CORRECTED 2014 Form 8606 will have to be filed since an incorrect one has already been sent to the IRS.
by retiredjg
Sun Nov 19, 2017 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: How to take income from IRA?
Replies: 8
Views: 526

Re: How to take income from IRA?

I do it the easy way. All gains/earnings are reinvested. When I need money, I sell some shares (stocks or bonds - whichever I have too much of) and have some withheld for taxes. Few clicks of the mouse and done. I doubt there is anything wrong with any of your other ideas, but there is no reason to ...
by retiredjg
Sun Nov 19, 2017 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options
Replies: 20
Views: 976

Re: Trev H Four-Fund Portfolio Tax Loss Harvesting Partner Options

Hi All, Thanks to advice on this forum, I am switching to the "Trev H Four-Fund Portfolio" (https://www.bogleheads.org/forum/viewtopic.php?t=38374), which uses equal portions of: Vanguard Total Market (VTI) Vanguard Total International Ex-US (VXUS) Vanguard Small Value (VBR) Vanguard International ...
by retiredjg
Sun Nov 19, 2017 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services/Portfolio Review
Replies: 45
Views: 3269

Re: Vanguard Personal Advisor Services/Portfolio Review

I do have the option of rolling over some of my 401k (and keeping some with my employer after I retire in case I need access with "Rule of 55") to help balance out shelf space of accounts regarding taxable vs. tax advantaged. Ultimately, after 59.5, this is what will happen anyways. Maybe I'm misun...