Search found 32341 matches

by retiredjg
Sat May 26, 2018 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Just wanted to clarify how taxation works on LTCG rate and Roth conversion
Replies: 20
Views: 1003

Re: Just wanted to clarify how taxation works on LTCG rate and Roth conversion

If I remember correctly, it had to do with some things that get increased each year and some things that were just "set" by the new law. In this case, they were supposed to be the same but one got the yearly increase in 2018 and the other one was set to the 2017 number. Or something along that line....
by retiredjg
Sat May 26, 2018 4:51 pm
Forum: Investing - Help with Personal Investments
Topic: Just wanted to clarify how taxation works on LTCG rate and Roth conversion
Replies: 20
Views: 1003

Re: Just wanted to clarify how taxation works on LTCG rate and Roth conversion

Thanks for the clarification; now, on to find out why there is that $200 difference :? It's a glitch in the new tax laws. Ordinarily, these two limits are the same and they are likely to be made the same by an administrative adjustment before tax day. If not, the first $200 of LTCG will be taxed at...
by retiredjg
Sat May 26, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Just wanted to clarify how taxation works on LTCG rate and Roth conversion
Replies: 20
Views: 1003

Re: Just wanted to clarify how taxation works on LTCG rate and Roth conversion

Say you increase Roth conversion by another 10K, that will be taxed at 12%, but that also puts your LTCG of 20K in 15% tax category. You are paying 12% and 15% on different amounts, it is NOT 27% tax. isnt it? Maybe hearing it a different way will help. If you add a $1 of ordinary income, that doll...
by retiredjg
Sat May 26, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for guidance on implementing 3 fund portfolio
Replies: 8
Views: 750

Re: Looking for guidance on implementing 3 fund portfolio

I would put all the international into taxable and fill the rest of the taxable account with total stock. I'd put all the bonds in the Rollover IRA(s) - all in one or split any way you like, it does not matter. In the rest of the Rollover IRAs and the Roth IRAs, I'd use 500 index and Extended Market...
by retiredjg
Sat May 26, 2018 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Transferred my Roth (American Funds) to Vanguard, but money stayed in AF funds
Replies: 3
Views: 304

Re: Transferred my Roth (American Funds) to Vanguard, but money stayed in AF funds

I believe Vanguard charges a fee to sell American Funds funds. You should find out. If there is a fee, beg them to give you a few free trades for moving your money there and buying the Vanguard funds. They may not, but it can't hurt. Edited to add.... https://investor.vanguard.com/investing/trading-...
by retiredjg
Sat May 26, 2018 7:07 am
Forum: Investing - Help with Personal Investments
Topic: Alternative to Morningstar X-ray Tool
Replies: 12
Views: 943

Re: Alternative to Morningstar X-ray Tool

dcabler wrote:
Sat May 26, 2018 6:55 am
Have you tried Morningstar's Instant X-Ray tool? A little more limited than the regular X-Ray tool you get with a paid subscription, but does what I care about...
I looked for it yesterday after reading this thread and could not find it anymore (without signing up). Did I miss it?
by retiredjg
Sat May 26, 2018 6:02 am
Forum: Investing - Help with Personal Investments
Topic: Where to transfer Roth?
Replies: 8
Views: 579

Re: Where to transfer ROTH?

What if I were to pick vanguard funds through schwab. I hear schwab customer service and other services are much better. If you want Vanguard funds, you should use Vanguard. This avoids transaction fees and gives you access to the lower cost Admiral shares. If you want to use Schwab, they have a ni...
by retiredjg
Fri May 25, 2018 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion - will I have pro-rata rule problems?
Replies: 6
Views: 343

Re: Roth conversion - will I have pro-rata rule problems?

I would get the rollover done first even though that is not required. If the rollover happens as expected, all is well. If the rollover does not happen as expected, if you have already done the Roth conversion your underwear will be in a wad and pro-rating will be required. Not illegal. Not impossib...
by retiredjg
Fri May 25, 2018 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Should I open a traditional IRA for bond allocation?
Replies: 14
Views: 535

Re: Should I open a traditional IRA for bond allocation?

I also feel better now knowing that bonds in a Roth IRA isn't a total garbage idea at least. Even if your ultimate goal is to have bonds someplace outside of Roth IRA, having some in Roth IRA at your stage is darn near harmless. Save money. When you get a 401k, put the bonds there. Until then, do w...
by retiredjg
Fri May 25, 2018 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Where to transfer Roth?
Replies: 8
Views: 579

Re: Where to transfer ROTH?

All other things being equal, I would choose Vanguard or Fidelity over Schwab because Schwab tends to keep a portion of the fund in cash rather than stocks and bonds.
by retiredjg
Fri May 25, 2018 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Where to transfer Roth?
Replies: 8
Views: 579

Re: Where to transfer ROTH?

Both Vanguard and Schwab have good target funds. And Fidelity.

Wherever you go, be sure you buy an index target fund, not an actively managed target fund. The word "index" should be in the name.
by retiredjg
Fri May 25, 2018 4:26 pm
Forum: Investing - Theory, News & General
Topic: Is backdoor Roth IRA eliminated in 2018?
Replies: 15
Views: 2032

Re: Is backdoor Roth IRA eliminated in 2018?

The back door has not been eliminated. What was eliminated is the ability to re-characterize the Roth conversion (second step of the back door) if your circumstances change. It is now a one way door - no "do overs" available. This is a good reason to do your Roth conversions very late in the year - ...
by retiredjg
Fri May 25, 2018 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Should I invest in expensive 457 plan?
Replies: 23
Views: 1211

Re: Should I invest in expensive 457 plan?

Socrates28 wrote:
Fri May 25, 2018 2:05 pm
If she retired when I did she would have 17 years in her pension.....
If you do get married, her pension also argues against using the expensive 457 plan.
by retiredjg
Fri May 25, 2018 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Should I open a traditional IRA for bond allocation?
Replies: 14
Views: 535

Re: Should I open a traditional IRA for bond allocation?

IBonds might be the solution to both of your concerns. Interest is tax-deferred (for up to 30 years) until the Ibonds are redeemed as well as exempt from state taxation. Purchase as part of your taxable account, and consider them as bond allocation. IBonds can also serve as emergency fund cache. I ...
by retiredjg
Fri May 25, 2018 9:11 am
Forum: Investing - Help with Personal Investments
Topic: Should I open a traditional IRA for bond allocation?
Replies: 14
Views: 535

Re: Should I open a traditional IRA for bond allocation?

Thanks to everyone in here for your replies. Income is 75k per year before taxes, so I believe that puts me in the 22% tax bracket. My taxable account has 73k in it. My Roth has 9k. Single, and I work for a start-up that does not offer any 401k retirement options. So I believe IRA's are the only ty...
by retiredjg
Fri May 25, 2018 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Question
Replies: 5
Views: 436

Re: Backdoor Roth Question

I don't think it matters much which way you do it as long as you do the conversion near the end of the year (when you are absolutely sure nothing unexpected is going to get rolled into your IRA which would require pro-rating). If you use Option 2, gains will be taxed as ordinary income. Losses....th...
by retiredjg
Fri May 25, 2018 7:35 am
Forum: Personal Consumer Issues
Topic: When did this start?? [Restaurant tipping on total bill]
Replies: 58
Views: 3462

Re: When did this start??

I've never tipped on the taxed amount, just the food and drink. Thoughts? I think tipping on just the food and drink is "righter", but I'd been doing it the other way for so many years before I realized it....I just never changed. I don't think it is a new thing. I just think people have different ...
by retiredjg
Fri May 25, 2018 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Should I open a traditional IRA for bond allocation?
Replies: 14
Views: 535

Re: Should I open a traditional IRA for bond allocation?

It is confusing. Where to put bonds gets a tremendous amount of discussion around here. The issue is not nearly as important as it might seem, especially if you are young and just starting out. You mention a taxable account and a Roth IRA. If you have one available, you should be using a work plan s...
by retiredjg
Fri May 25, 2018 5:53 am
Forum: Personal Finance (Not Investing)
Topic: changing job -- retirement account help please
Replies: 13
Views: 524

Re: changing job -- retirement account help please

You want to find out two things, if you can, about the next 401k.

What low cost funds (low expense ratio) are available to use?

Is there any fee in addition to the expense ratio? Any annual fee, advisory fee, administrative fee, management fee? If so, how much is it?
by retiredjg
Fri May 25, 2018 5:50 am
Forum: Personal Finance (Not Investing)
Topic: changing job -- retirement account help please
Replies: 13
Views: 524

Re: changing job -- retirement account help please

I will ask about funds and fee list. To be clear my current 401k is what is charging me 180 a month (I rolled an old 401k into my current employer's 401k to do my roth backdoor). So I will see if the new 401k allows me to move the current 401k into it for a lower fee. Yes, I understood the $180/mon...
by retiredjg
Thu May 24, 2018 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: Should I invest in expensive 457 plan?
Replies: 23
Views: 1211

Re: Should I invest in expensive 457 plan?

Yeah, sorry, Im not married yet. Long time GF and we are engaged. This is a problem. :( I realize you may think of yourself as a married couple but you are not. The fact that you are single makes all of the advice and suggestions above completely worthless because they were based on incorrect infor...
by retiredjg
Thu May 24, 2018 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: changing job -- retirement account help please
Replies: 13
Views: 524

Re: changing job -- retirement account help please

Argh about the 7 month thing. I can't really do the prorata as most of the 880k is pretax old 401k dollars. I would hope that all of the $880k is pretax, not just "most". Or did you make some Roth contributions to this last 401k? While you are talking to HR, see if they are willing to share with yo...
by retiredjg
Thu May 24, 2018 6:40 pm
Forum: Investing - Theory, News & General
Topic: Clarification of IRA transfer/rollover rules.
Replies: 8
Views: 272

Re: Clarification of IRA transfer/rollover rules.

Apparently yes, if I was given correct info. The receiving credit union does not accept a direct transfer into an IRA because they said they cannot open an IRA account until the funds are present in the institution. Thus, I assume due to primitive technology or whatever, one cannot transfer funds i...
by retiredjg
Thu May 24, 2018 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: changing job -- retirement account help please
Replies: 13
Views: 524

Re: changing job -- retirement account help please

I called the 401k manager (TA) and it is a monthly fee -- I have $880k in the account. It is based on the value of the account. There is no way for it to change (I cannot move the money to another fund or plan it is just what they charge). Hard to believe. Too bad you didn't know that before rollin...
by retiredjg
Thu May 24, 2018 6:08 pm
Forum: Investing - Theory, News & General
Topic: Clarification of IRA transfer/rollover rules.
Replies: 8
Views: 272

Re: Clarification of IRA transfer/rollover rules.

It seems like you are going to a lot of unnecessary trouble - essentially moving the money 3 times instead of once. Is there a reason for this?
by retiredjg
Thu May 24, 2018 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: changing job -- retirement account help please
Replies: 13
Views: 524

Re: changing job -- retirement account help please

About your plans to use Roth 401k, that is usually only a good idea if you are in a very low tax bracket. It does not sound like you are in a very low tax bracket.
by retiredjg
Thu May 24, 2018 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: changing job -- retirement account help please
Replies: 13
Views: 524

Re: changing job -- retirement account help please

I think some kind of misunderstanding is going on. A fee of $180 a month seems unlikely. In fact, a fee of $180 a year even sounds unlikely to me in a 401k. It appears that right now, all your money is in your current company 401k. If you roll that to IRA and it is in tIRA at the end of the year, th...
by retiredjg
Thu May 24, 2018 5:53 pm
Forum: Investing - Theory, News & General
Topic: Clarification of IRA transfer/rollover rules.
Replies: 8
Views: 272

Re: Clarification of IRA transfer/rollover rules.

I do not believe that Zack's is correct on this. My reading of the attached document is that they will withhold 10% of an IRA unless you opt out or pick a different percentage. The 20% mandatory withholding is on a work plan such as a 401k and you cannot opt out of that withholding if you do a 60 da...
by retiredjg
Thu May 24, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Mega backdoor Roth to Roth 401k or Roth IRA
Replies: 9
Views: 741

Re: Mega backdoor Roth to Roth 401k or Roth IRA

It is a very complex and confusing system. [*]If the after-tax contributions are converted to a Roth IRA, then the contributions (but not the earnings) can be withdrawn tax- and penalty free (assuming that 5 years have passed since the first contribution was made). Earnings can be withdrawn but woul...
by retiredjg
Thu May 24, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: New Trend: Bonds in Roth IRA
Replies: 14
Views: 1961

Re: New Trend: Bonds in Roth IRA

I don't think it is a new trend. In fact, when I was new here, it was suggested to hold bonds in Roth before putting bonds into taxable.

Some people actually prefer to hold some bonds in Roth IRA. Further still, I recall one poster who preferred to fill Roth IRA with TIPS. :shock:
by retiredjg
Thu May 24, 2018 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Mega backdoor Roth to Roth 401k or Roth IRA
Replies: 9
Views: 741

Re: Mega backdoor Roth to Roth 401k or Roth IRA

Is this true for the mega backdoor Roth conversion as well? Is an existing traditional IRA a concern when doing either (after-tax 401k) -> (Roth 401k) or (after tax 401k) -> (Traditional / Roth IRA) conversions? No, not if you do it right. It is not an issue at all for the in-plan Roth rollover (IR...
by retiredjg
Thu May 24, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?
Replies: 85
Views: 8064

Re: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?

Plus, psychologically, I desire to simplify my finances and I desire to have the peace of mind of a paid off home. I am leaning toward this option. Would I be making a big mistake? No. There is more to finances than making the most money. While I see no financial "need" to pay off the mortgage, app...
by retiredjg
Thu May 24, 2018 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Should I invest in expensive 457 plan?
Replies: 23
Views: 1211

Re: Should I invest in expensive 457 plan?

I think I'm confused. If your two incomes add to $240k, you are probably not eligible to contribute directly to Roth IRA. You did not mention using the back door to contribute....are you doing that? It is unclear if your wife is also putting money into any retirement accounts. If yes, what kind of a...
by retiredjg
Wed May 23, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Should I invest in expensive 457 plan?
Replies: 23
Views: 1211

Re: Should I invest in expensive 457 plan?

If you have a pension coming and if you are already filling a 403b, I WOULD NOT fill an expensive 457b unless you are very very far behind in your retirement savings. If you have been saving something for retirement all along, the expensive 457 is probably unneeded. If you have almost zilch saved fo...
by retiredjg
Wed May 23, 2018 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: 401k funds please help me chose.
Replies: 26
Views: 1552

Re: 401k funds please help me chose.

It's odd and I have no idea what the issue is. The message is the same.

Not everyone can see it. If you want comments from people who can't see it, type out those funds.

If you get an answer you are satisfied with, don't type out those funds.:happy
by retiredjg
Wed May 23, 2018 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: 401k funds please help me chose.
Replies: 26
Views: 1552

Re: 401k funds please help me chose.

There is no image for me. If you don't get the answer you are looking for, just type out the 3 or 4 funds you are considering.

I don't see any reason to hold money for retirement in money market for more than a day or so.
by retiredjg
Wed May 23, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Can I max out TSP and do a traditional IRA?
Replies: 8
Views: 690

Re: Can I max out TSP and do a traditional IRA?

Ah, I see now. The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly), depending on your adjusted gross income (reported on your Form 1040 or 1040A). Use the chart below to calculate your credit. I thought it meant the...
by retiredjg
Wed May 23, 2018 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Should I rollover VTSAX into 401k to do backdoor Roth? [Vanguard Total Stock]
Replies: 7
Views: 437

Re: Should I rollover VTSAX into 401k to do backdoor Roth? [Vanguard Total Stock]

Those are excellent choices. Large Cap Equity Index combined with Small/Mid cap index (80/20) should be the same thing as your Total Stock Index. I would have no problem rolling $700k into those choices if the plan has otherwise been easy or satisfactory for you to use. Not sure why you think the fe...
by retiredjg
Wed May 23, 2018 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Can I max out TSP and do a traditional IRA?
Replies: 8
Views: 690

Re: Can I max out TSP and do a traditional IRA?

I agree with rkhusky that you could deduct two traditional IRAs, but it does not do you any good. That only gets you down to $42.5k which is still in the 10% tier. I don't see a way to get your AGI down into the 20% tier. I get a different number from $400 though. I get $2,900. I'd use Roth IRA for ...
by retiredjg
Wed May 23, 2018 4:58 am
Forum: Investing - Help with Personal Investments
Topic: 401k funds please help me chose.
Replies: 26
Views: 1552

Re: 401k funds please help me chose.

SO I finally rolled in into Fidelity 401k and I have more questions Apparently, my company has Brokerage Link account, in addition, to funds on the list. Question 1. Does it make sense to use it? All funds transfer between 401K and Brokerage Link account has to be done throw SPAXX. Your list of fun...
by retiredjg
Tue May 22, 2018 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Should I rollover VTSAX into 401k to do backdoor Roth? [Vanguard Total Stock]
Replies: 7
Views: 437

Re: Should I rollover VTSAX into 401k to do backdoor Roth? [Vanguard Total Stock]

In the longrun, is this worth it? As mentioned above, the only way to know is for you to list what is available in your 401k. You don't have to list everything. How about the 10 lowest cost (lowest ER) items on the list? Or the 3 lowest cost in each asset class. Getting money into Roth is nice, but...
by retiredjg
Tue May 22, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: If RMD are large should you still defer into 401k
Replies: 32
Views: 2974

Re: If RMD are large should you still defer into 401k

max 401k pre-ax to your next tax bracket if it is not 35%. If you are into higher tax bracket, then max pre-tax. If you projected RMD is too big, good news for you, you can retire earlier and using the gap years to do Roth conversion till you start to withdraw SS and pension. You can also do a one ...
by retiredjg
Tue May 22, 2018 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Roth question
Replies: 24
Views: 1531

Re: Roth question

This is the first and only direct rollover I think you have already realized this, but what you did was NOT a direct rollover. The term "direct rollover" refers to work plans like a 401k, not to an IRA. What you apparently did was a 60 day rollover with the contribution and a trustee to trustee tra...
by retiredjg
Tue May 22, 2018 9:30 am
Forum: Personal Finance (Not Investing)
Topic: How do I tell if Roth conversions are worth the trouble?
Replies: 76
Views: 5591

Re: How do I tell if Roth conversions are worth the trouble?

Horsefly wrote:
Tue May 22, 2018 9:25 am
I didn't know that. Thanks. I'll have to consider that once I hit 65.
What happens when you turn 65 is based on your income when 63. Do not accidentally overlook this.
by retiredjg
Tue May 22, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: How do I tell if Roth conversions are worth the trouble?
Replies: 76
Views: 5591

Re: How do I tell if Roth conversions are worth the trouble?

You are currently in the 24% bracket. It might be helpful to know if a pension is putting you there or if you just have fairly high expenses. It is possible/likely that your 24% bracket will revert to 28% in 5 or 6 years (whenever it is). It is very possible that when one of you dies, the other will...
by retiredjg
Tue May 22, 2018 7:59 am
Forum: Investing - Help with Personal Investments
Topic: Should we max out all tax advantaged accounts?
Replies: 9
Views: 1298

Re: Should we max out all tax advantaged accounts?

i was talking about the possibility of the poster having a pension in addition to spouse's probably small pension.
by retiredjg
Tue May 22, 2018 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Should we max out all tax advantaged accounts?
Replies: 9
Views: 1298

Re: Should we max out all tax advantaged accounts?

Yes on saving that much. Maybe on whether that much should go into tax-deferral. If you will have a pension too, probably no. If you will not have a pension it is much harder to guess. There is no one answer for this and much of it is a guess about what your future tax rates will be. If you are in y...
by retiredjg
Tue May 22, 2018 6:54 am
Forum: Investing - Help with Personal Investments
Topic: Roth question
Replies: 24
Views: 1531

Re: Roth question

The second contribution was NOT made within 60 days of the distribution...... How do you know that? :confused Because he read what the OP posted - I contributed $5500 to my Roth IRA in January. In late April I took the $5500 back out into checking and put it in a new Roth IRA. There is no rollover ...
by retiredjg
Tue May 22, 2018 6:07 am
Forum: Investing - Help with Personal Investments
Topic: Roth question
Replies: 24
Views: 1531

Re: Roth question

Alan S. wrote:
Mon May 21, 2018 11:41 pm
The second contribution was NOT made within 60 days of the distribution......
How do you know that? :confused
by retiredjg
Tue May 22, 2018 5:57 am
Forum: Investing - Help with Personal Investments
Topic: Appreciate some feedback
Replies: 4
Views: 451

Re: Appreciate some feedback

e. I thought the general principle was to park your bonds in your taxable account to make more room for stocks in your non-taxable accounts (Roth and 401k). I am a California resident and at my income level, I was looking for a tax-savy choice for my bond funds. This is an area of much discussion a...