Search found 33152 matches

by retiredjg
Sat Aug 18, 2018 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

Perhaps if you have other traditionals then it is easiest to wait and convert them all at once. But otherwise I'm not sure how advising someone to wait and convert a non deductible down the road is doing them any favors. If there are other traditional IRAs in the picture, this whole conversation is...
by retiredjg
Sat Aug 18, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio vs. Schwab Target Fund
Replies: 90
Views: 9972

Re: Schwab Intelligent Portfolio vs. Schwab Target Fund

What I meant is to post your financial information in the format shown in the link below called "Asking Portfolio Questions". It will take some work on your part to gather and post the requested information. You will learn a lot by doing it. We can answer most portfolio questions with the informatio...
by retiredjg
Sat Aug 18, 2018 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

I'd argue that sooner or later you will likely convert. There is no long term benefit to waiting until your non deductible is "in the money". You are just putting off the pain. Not sure what pain I would be putting off, but that misses the point. :happy I was not talking about what I would do. I wa...
by retiredjg
Sat Aug 18, 2018 7:44 pm
Forum: Personal Consumer Issues
Topic: Credit Card Fraud - $30K
Replies: 34
Views: 2198

Re: Credit Card Fraud - $30K

I understand that the CC folks do not want to release details of how the fraud was committed. It wouldn't help me prevent another occurrence and they don't want to educate people as to how to defraud them. It's not personal; it's just business. I agree. And in cases where it was an inside job or th...
by retiredjg
Sat Aug 18, 2018 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

House Blend, I actually had a similar example in mind. Back to Wizard's imaginary contribution (basis of $6,500) which he converts in it's entirety to Roth even though it is only now worth $6,300. The IRA is now empty and there is $200 worth of basis that has not been used. Does the basis no longer ...
by retiredjg
Sat Aug 18, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio review request
Replies: 5
Views: 272

Re: Portfolio review request

The best you can do is sell as much as you can, keeping a small to moderate amount in reserve for the big payoff....if it happens. :happy Don't get in the habit of thinking of that almost million dollars as yours forever. It might not work out that way. Instead, concentrate on what you can actually ...
by retiredjg
Sat Aug 18, 2018 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio review request
Replies: 5
Views: 272

Re: Portfolio review request

Does this plan generally seem reasonable, and any suggestions for improvements? I think you are headed in the right direction,but... Does the position in my employer seem too high, even given the upside? If the stock continues to rise, I am planning on continuing to sell to hold roughly this positi...
by retiredjg
Sat Aug 18, 2018 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: What to use for Fixed Income allocation in 3 fund portfolio?
Replies: 3
Views: 498

Re: What to use for Fixed Income allocation in 3 fund portfolio?

What to use for Fixed Income allocation in 3 fund portfolio? For a tax-advantaged account of any kind, a total bond index will do. Sometimes you will not have a total bond index available, for example in a 401k. In that case, you have to pick the best of what you have. REITs, due to the risks invol...
by retiredjg
Sat Aug 18, 2018 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Minimizing Capital Gains Tax When Transferring to Vanguard
Replies: 2
Views: 150

Re: Minimizing Capital Gains Tax When Transferring to Vanguard

I'm preparing to transfer in kind from Ameriprise to Vanguard. What is the most tax-advantaged way to move assets? I'm in the 22% tax bracket. Do I have to move assets from Ameriprise joint to Vanguard joint and from Ameriprise Roth IRA to Vanguard Roth IRA? Or can I "criss cross"? You cannot criss...
by retiredjg
Sat Aug 18, 2018 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Why the Yale Endowment Hate? [Request for portfolio help]
Replies: 68
Views: 5037

Re: Why the Yale Endowment Hate?

Is your portfolio actually at 80/20? In order to determine that, someone would have to do the math on every fund you have. In other words, the way to understand a portfolio is to present every holding as a percentage of the entire portfolio, not as a percentage of the account the fund is in. If you ...
by retiredjg
Sat Aug 18, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio vs. Schwab Target Fund
Replies: 90
Views: 9972

Re: Schwab Intelligent Portfolio vs. Schwab Target Fund

OR, I can just buy a few target dated funds and call it day (even if that means moving to Vanguard). Any help? To a certain extent, you can...although there might not be a low cost target fund in your work plan and target funds are usually not the best choice for a taxable account. However, we know...
by retiredjg
Sat Aug 18, 2018 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

I understand what MarkNYC said. Both times. :happy And I remember it that way too. But it is not pertinent to the question I'm most interested in - whether the unused basis is lost (or deducted in the old days by the people that the 2% rule didn't rule out) or carried over. Unlike you, I really beli...
by retiredjg
Sat Aug 18, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Making money last through retirement
Replies: 26
Views: 4263

Re: Making money last through retirement

Grt2bOutdoors wrote:
Sat Aug 18, 2018 3:29 pm
The 10% withdrawal penalty on earnings is waived. The earnings are taxed.
If the penalty is waived, there is no downside to saving too much in a 529. Is that really true?
by retiredjg
Sat Aug 18, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

Why would you not convert? You are no worse off in a Roth, are you? Best case you have some remaining basis to carry forward. Worst case is you come out the same, no income or loss on either the non deductible or Roth as long as the ND remains below basis. You make a good argument. I should restate...
by retiredjg
Sat Aug 18, 2018 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

So what happens if you put $6500 in a traditional non deductible, it falls to $6000, and you do a Roth conversion? Do you have an $500 ordinary income loss upon conversion? I know if you convert higher than your contribution you will have ordinary income. People do not agree on what happens with th...
by retiredjg
Sat Aug 18, 2018 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

I ran through the Form 8606 paperwork, converting the entire IRA the first time and leaving some of the IRA behind the second time. Contributing $6,500 and converting the entire remaining $6,300 after some loss results in $200 basis on line 14. This is doing the form by hand. Contributing $6,500 and...
by retiredjg
Sat Aug 18, 2018 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Making money last through retirement
Replies: 26
Views: 4263

Re: Making money last through retirement

What happens to money in a 529 if you do not use it for the education of your son? I'm asking 'cause I don't know for sure, but I do have some ideas. Let's say he gets a full ride. Your current $26k has grown to $30k and he didn't need any of it. If the money is withdrawn, but not used for education...
by retiredjg
Sat Aug 18, 2018 1:13 pm
Forum: Personal Consumer Issues
Topic: Credit Card Fraud - $30K
Replies: 34
Views: 2198

Re: Credit Card Fraud - $30K

Prokofiev wrote:
Sat Aug 18, 2018 12:33 pm
My FICO was dinged not due to being late, but because my outstanding balances were now over 35% of my total credit limit. Usually it is 5% or less.
From over 800 (outstanding) to under 700 (not so good) is a pretty big ding. I'm surprised it is that high.

I
by retiredjg
Sat Aug 18, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

If I recall correctly, Alan S. has suggested that leaving behind a little bit in the IRA overcomes the obstacle of triggering the use of the front page of Form 8606. I don't recall if he feels like that is a necessity or if it just a workaround for people who do feel it is a necessity. I don't think...
by retiredjg
Sat Aug 18, 2018 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: wich bond fund for roth and taxable if no ira's
Replies: 6
Views: 549

Re: wich bond fund for roth and taxable if no ira's

Sleeveless Jerry, so sorry about the delay. :( Your current portfolio looks like this. Total = $76,831 taxable 78.9% (existing vanguard acc) 23.4% Total Stock VTSAX 17,987 7.3% Total International VGTSX 5,633 48.2% Total Bond VBTLX 37,024 Roth IRA 21% 16,187 21% uninvested If you decide to do this i...
by retiredjg
Sat Aug 18, 2018 10:27 am
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

I'm not sure "negative basis" is proper terminology. This is kind of my point. We really don't know yet what this poster is talking about. In my example above, there was simply a capital loss for which no benefit could be obtained. Some people think this way. I don't happen to be one of them. I'm o...
by retiredjg
Sat Aug 18, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

On Form 8606, basis is listed on line 14. Can anyone, with or without software, figure out how to generate a negative number on that line?
by retiredjg
Sat Aug 18, 2018 8:18 am
Forum: Investing - Help with Personal Investments
Topic: Request your help - new to self managed investments
Replies: 6
Views: 362

Re: Request your help - new to self managed investments

That is interesting information and does sound sort of Vanguardish. However, I have not seen any mention of tax loss harvesting in the PAS brochure or the web pages so if that is important to you, you need to find out for yourself for sure. My guess is that if a PAS customer called up and said they ...
by retiredjg
Sat Aug 18, 2018 7:27 am
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

Celia, I think you are looking at it backwards. If you have a basis of $5,500 and do a conversion of $5,000, your remaining basis is $500 not -$500. The math should be basis minus conversion , not conversion minus basis. However, since you see it that way, maybe our original poster does to. Small La...
by retiredjg
Sat Aug 18, 2018 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k vs Sep Ira vs unique solo401k
Replies: 10
Views: 468

Re: Solo 401k vs Sep Ira vs unique solo401k

Thanks Spirit Rider. Jessikaur, perhaps things have changed. My reading of tfb's article is that "Nora" charges $100 a year just to maintain the document (keep it up to date each year). There is an additional fee of "under $500" each year for "Nora" to be the third party administrator. While an addi...
by retiredjg
Sat Aug 18, 2018 5:51 am
Forum: Investing - Help with Personal Investments
Topic: Converting existing potfolio to 3 funds - novice [help with 401(k) choices]
Replies: 29
Views: 3113

Re: Help needed to choose fund for 401K with new employer

(1) How does the new 401K seem? Should I keep buying SP500 fund like "FID 500 INDEX PR (FUSVX)" as I was doing at Insperity? Looks like a fine plan to me. We don't know what your portfolio currently looks like, but if you are happy with it and this is your only change....yes, just keep using the 50...
by retiredjg
Fri Aug 17, 2018 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Today I retired [should I invest in rental properties?]
Replies: 24
Views: 2116

Re: Today I retired [should I invest in rental properties?]

peacelove wrote:
Fri Aug 17, 2018 5:15 pm
What do we think about putting a portion of our nest egg into rental properties? I'm looking for an alternative to the stock/bond market for at least 1/3 of my portfolio.
I think it is a very bad idea unless you already have experience in the area and have a huge passion for doing more of it.
by retiredjg
Fri Aug 17, 2018 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 39
Views: 1304

Re: How to Treat "Negative" Basis in Nondeductible IRA

If you have a negative basis, wouldn't that mean you converted more to Roth tax free than allowed?

Whether the above is correct or not, I don't see how you could have a negative basis. I think a negative number on line 14 means you've screwed up somewhere.
by retiredjg
Fri Aug 17, 2018 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k vs Sep Ira vs unique solo401k
Replies: 10
Views: 468

Re: Solo 401k vs Sep Ira vs unique solo401k

Are you sure you can get what you want for that cost? I don't think so. For that cost, I think you have to be your own administrator and it is unlikely (not impossible) that you are prepared for that.
by retiredjg
Fri Aug 17, 2018 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Request your help - new to self managed investments
Replies: 6
Views: 362

Re: Request your help - new to self managed investments

Do #2 and then do #3. Work with Vanguard's PAS for several months to a year and then decide what to do. You may find you are ready to manage it yourself. If so, you can simply drop the service and keep the portfolio and manage it ourself. Are you sure they do tax loss harvesting? I'm thinking they d...
by retiredjg
Thu Aug 16, 2018 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Source of Roth Funding
Replies: 12
Views: 600

Re: Question on Source of Roth Funding

Just use plain words to tell us what you have and what you want to do with it. Then maybe we can help you figure out what to do.
by retiredjg
Thu Aug 16, 2018 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Source of Roth Funding
Replies: 12
Views: 600

Re: Question on Source of Roth Funding

soazfree wrote:
Thu Aug 16, 2018 7:11 pm
Hmm, I didn’t think that the mega back door had a dollar limit on what you could do? Maybe I’m using the wrong terms for describing? Thank you for feedback
The mega back door is something you do with your plan at work (a 401k, etc.)
by retiredjg
Thu Aug 16, 2018 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Source of Roth Funding
Replies: 12
Views: 600

Re: Question on Source of Roth Funding

soazfree wrote:
Thu Aug 16, 2018 7:01 pm
I thought a “back door” was when you first would use the $200k cash to open a tIRA and then immediately convert to a Roth.
That would be a "back door" all right, but you can only put $5,500 ($6,500 if over 50) in the tIRA each year.
by retiredjg
Thu Aug 16, 2018 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 45
Views: 3298

Re: High tax bracket - Go 100% Roth in tax advantaged?

I would stop using the non-governmental 457b and use traditional 401k. You need some tax-deferral. You probably don't need two accounts worth of tax-deferral though, especially with a pension, and non-govenrmental 457bs have issues. I might use a combination of traditional and Roth 401k. I wold not ...
by retiredjg
Thu Aug 16, 2018 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Source of Roth Funding
Replies: 12
Views: 600

Re: Question on Source of Roth Funding

Sorry, but I found your post confusing. I do not think you are talking about the back door at all. Instead,it seems you are talking about Roth conversions. Why do you think you could do a $200k Roth conversion without any taxes? That would be unusual. Maybe if you tell us what you have and what you ...
by retiredjg
Thu Aug 16, 2018 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: Ran out of space in Roth. Where should I put Small Cap Value fund now?
Replies: 6
Views: 591

Re: Ran out of space in Roth. Where should I put Small Cap Value fund now?

The Vanguard SCV fund is not tax-inefficient. It may have been at one time, at least sometimes, but since the addition of the ETF asset class, it is just fine to hold in taxable. One issue is that you do not want to intentionally or unintentionally tax loss harvest this fund because that could cause...
by retiredjg
Thu Aug 16, 2018 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Why the Yale Endowment Hate? [Request for portfolio help]
Replies: 68
Views: 5037

Re: Why the Yale Endowment Hate?

Choking on all the ivy here.... :shock: Let's talk about the retirement portfolio. You have posted what you have in Roth IRA. That should not the same thing as what is in your portfolio. And it is what is in the portfolio that matters, not one account in a portfolio. I don't think there is a lot of ...
by retiredjg
Thu Aug 16, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie [Where to start?]
Replies: 2
Views: 120

Re: Newbie [Where to start?]

Welcome. The place to start your education is here.

https://www.bogleheads.org/wiki/Getting_started

When you are ready for advice on your portfolio, use the format in the link posted in the above message.
by retiredjg
Thu Aug 16, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2141

Re: Should I Max Out Tax-Deferred Accounts?

Well, that makes it make some sense. Thank you.

It still requires a person to have 5 years of expenses saved (in addition to money in taxable to pay the taxes on the Roth conversions).
by retiredjg
Thu Aug 16, 2018 10:50 am
Forum: Investing - Help with Personal Investments
Topic: [How can I simplify rebalancing across multiple accounts?]
Replies: 16
Views: 1491

Re: [How can I simplify rebalancing across multiple accounts?]

I think you may have misunderstood. The "usual way" we plan a retirement portfolio is to include a married couple's retirement assets all together. This allows the flexibility to choose the best funds from each plan. Sometimes that helps make the overall cost less. Reasons that people might not want...
by retiredjg
Thu Aug 16, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2141

Re: Should I Max Out Tax-Deferred Accounts?

Regarding the infamous Roth pipeline.....it probably has a use somewhere, but it is is not really going to solve a problem for you (in my opinion). You would be converting tIRA to Roth IRA for some years right before retirement. Right before retirement will likely be your highest income years....th...
by retiredjg
Thu Aug 16, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2141

Re: Should I Max Out Tax-Deferred Accounts?

Some thoughts I've had reading this over. Your estimation of needing $2.5 Million ($100k x 25) tells me that you do not intend to live a very lavish lifestyle in retirement. It seems your intent is to be comfortable, not spendy. But it seems unlikely that $100k will accomplish that by the time you g...
by retiredjg
Thu Aug 16, 2018 6:39 am
Forum: Investing - Help with Personal Investments
Topic: [How can I simplify rebalancing across multiple accounts?]
Replies: 16
Views: 1491

Re: [How can I simplify rebalancing across multiple accounts?]

RIMDBogle wrote:
Wed Aug 15, 2018 11:01 pm
I excluded my spouse accounts now
I may be confused about what is going on, but usually a spouse's retirement assets would be included in the couple's retirement portfolio.

There are a few occasions when people prefer to keep them separate. Is that what you are saying?
by retiredjg
Wed Aug 15, 2018 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Convert TSP to roth on retirement?
Replies: 7
Views: 497

Re: Convert TSP to roth on retirement?

I'd say the tsp makes up ~ 40% of my portfolio. I also have a Roth IRA (15%?) and a taxable account with the remainder. I'm 35, retirement is 5-10 years out. Currently in 28% tax bracket, but if i convert, I expect to be in the 15% tax bracket. I should have enough existing roth contributions avail...
by retiredjg
Wed Aug 15, 2018 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2141

Re: Should I Max Out Tax-Deferred Accounts?

I'll have to respond to your post tomorrow or the next day. But for now, keep in mind that some of the responses that say "fill all your tax-deferred accounts" do not seem to understand the amount of money you are talking about. It is good advice for 1 plan or a couple with two plans total. You are ...
by retiredjg
Wed Aug 15, 2018 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Convert TSP to roth on retirement?
Replies: 7
Views: 497

Re: Convert TSP to roth on retirement?

It is not possible to answer this question reliably with only the information given. Things like how much of your portfolio is tax deferred, what other accounts you have, your tax bracket when you do the conversions, your age when you retire, your marital status, the size of your TSP, and probably s...
by retiredjg
Wed Aug 15, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: megabackdoor impact on tIRA.
Replies: 2
Views: 311

Re: megabackdoor impact on tIRA.

Agree with what Duckie said. If you roll the after-tax account directly to Roth IRA, your tIRA is not involved at all. You will pay tax on the earnings part, but no pro-rating with your tIRA will occur. You can choose to roll the after tax money to Roth and the earnings (pre-tax) to the tIRA if you ...
by retiredjg
Wed Aug 15, 2018 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Back Door Roth IRA - possible or not?
Replies: 6
Views: 356

Re: Mega Back Door Roth IRA - possible or not?

-->So if I understand you correctly, there are two premises that had to be met in order to do employer back door roth ira conversion: 1) you are saying my employer has to offer "the opportunity to make employee after tax contributions" after I contributed to the pretax account of 403b and 457b? You...
by retiredjg
Wed Aug 15, 2018 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Efficiency vs. Lower Basis Points
Replies: 5
Views: 330

Re: Tax Efficiency vs. Lower Basis Points

I would not move anything to save 2 basis points.

There could be other reasons to move it, but nothing jumps out from what you have told us.