Search found 31452 matches

by retiredjg
Sat Feb 24, 2018 8:17 pm
Forum: Personal Consumer Issues
Topic: How to rent a specific car, Bogleheads way?
Replies: 18
Views: 543

Re: How to rent a specific car, Bogleheads way?

Epsilon Delta wrote:
Sat Feb 24, 2018 8:03 pm
When the company I worked for was marketing for GM I needed to rent one of a list of four particular models in one of three colors.
That's very interesting.

Why the "one of three colors"? And what colors were they? If you can say....
by retiredjg
Sat Feb 24, 2018 3:29 pm
Forum: Personal Consumer Issues
Topic: How to rent a specific car, Bogleheads way?
Replies: 18
Views: 543

Re: How to rent a specific car, Bogleheads way?

An internet search shows that Enterprise rents the Hundai Santa Fe "or similar" as one of their standard size SUVs. I think you'd have to call them and be very specific and what you want and see if they will provide it for you. Your best bet is to go to an airport and walk through the car rental are...
by retiredjg
Sat Feb 24, 2018 3:17 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth technical question
Replies: 9
Views: 295

Re: Backdoor Roth technical question

Or would it be better to just convert all of it to Roth and pay tax on the $13,000 then do another $5500 back door for 2018? Would that be allowed? Conversion is different from contribution? It is unclear that you would pay tax on the entire $13,000 if you convert the IRA to Roth. If the 2017 contr...
by retiredjg
Sat Feb 24, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth technical question
Replies: 9
Views: 295

Re: Backdoor Roth technical question

If I’m only doing a partial conversion ($5500) each year is it necessary to “hide” the rest of my contributory allocations? Just trying to avoid the headache or rolling my IRA into current employers 401k. Thanks If there is any basis in your IRA, you cannot convert just the basis to Roth IRA. Basis...
by retiredjg
Sat Feb 24, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

I just have those 2. The Vanguard account is just my catch all for employee 401ks. So if I ever leave my current company, I would roll the Fidelity into the Vanguard and start a new 401k with the new company. Well, that's how it's been so far, previous company 401k's just getting rolled into the Va...
by retiredjg
Sat Feb 24, 2018 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

John Hancock 401k -> Rolled over into Vanguard Roth IRA Some random employee 401k -> Rolled over into Vanguard Roth IRA This is the only part that puzzles me. When you do this, it's called a Roth Conversion since you are going from pre-tax to post-tax. It also requires you to pay tax on the entire ...
by retiredjg
Sat Feb 24, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Reallocating --> Need ideas to minimize tax
Replies: 8
Views: 351

Re: Reallocating --> Need ideas to minimize tax

Mainesurfer, just so you are not confused, the Medicare Surtax of 3.8% that I mentioned and the Net Investment Income Tax mentioned by JW-Retired are the same thing. Once your MAGI goes over a certain level, your long term capital gains tax goes up from 15% to 18.8%. In this case, I think MAGI inclu...
by retiredjg
Sat Feb 24, 2018 11:21 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 180
Views: 13182

Re: What if you only live off dividends?

I think on most threads here the context is investing in dividend stock. I think "most" reflects what the reader was first exposed to. :happy Apparently for some of you that would be dividend paying stocks. For me, it is something different. But it doesn't really matter and we will never know what ...
by retiredjg
Sat Feb 24, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 180
Views: 13182

Re: What if you only live off dividends?

My main point here is that when you refer to “living off of dividends”, it implies to me a 100% stock portfolio. Because I’m more used to hearing “interest and dividends” when referring to a stock AND bond portfolio. Thanks. I'll try to keep that distinction in mind. But I'm older than you....and c...
by retiredjg
Sat Feb 24, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Reallocating --> Need ideas to minimize tax
Replies: 8
Views: 351

Re: Reallocating --> Need ideas to minimize tax

Perhaps, but if a person does sell another $10k in short term cap gains and that extra $10k pushes into the next bracket, what you said the first time is absolutely correct. I think. Sometimes, it gets confusing.
by retiredjg
Sat Feb 24, 2018 9:58 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 180
Views: 13182

Re: What if you only live off dividends?

Payout from bond funds is called dividends and reported on 1099-DIV. I am pretty sure but could be wrong interest from holding an individual bond is reported on 1099-INT. This is another case of a word that can mean different things depending on what one is talking about. Bonds pay interest and sto...
by retiredjg
Sat Feb 24, 2018 9:34 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 180
Views: 13182

Re: What if you only live off dividends?

I get your point, though, that a big part of most stock sales will be basis, which is excluded from tax. This is correct but it is not just that. It's that what is taxed will be taxed at a lower rate than bond interest/dividend income would be - if the income comes from a long term cap gain or a qu...
by retiredjg
Sat Feb 24, 2018 9:28 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 180
Views: 13182

Re: What if you only live off dividends?

Is it still true that it costs more in taxes to get a dividend than to sell shares? I believe that hasn’t been the case since the early 2000s. It is still true if you are comparing long term capital gains from stocks to dividends from bonds. But if you are thinking of stock qualified dividends vs s...
by retiredjg
Sat Feb 24, 2018 9:25 am
Forum: Investing - Help with Personal Investments
Topic: Reallocating --> Need ideas to minimize tax
Replies: 8
Views: 351

Re: Reallocating --> Need ideas to minimize tax

Definitely watch being bumped into a higher bracket.....but.....your bracket rate only applies to your ordinary income and short term capital gains. If the question is to add on another $10k of long term capital gains, bumping up a bracket does not matter. What does matter is the Medicare Surtax of ...
by retiredjg
Sat Feb 24, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Need help selecting 403b funds
Replies: 8
Views: 203

Re: Need help selecting 403b funds

Oh yes, forgot to add in an IRA.

I suggest you put 5% of your income into the 403b and another 5% (or $5,500 max) into a Roth IRA. At Fidelity, you can use the Fidelity Freedom INDEX fund (similar name, but this is a much lower cost fund) that matches the stock to bond ratio you choose.
by retiredjg
Sat Feb 24, 2018 9:02 am
Forum: Investing - Help with Personal Investments
Topic: Need help selecting 403b funds
Replies: 8
Views: 203

Re: Need help selecting 403b funds

Welcome! I’m 26 years old with a take-home pay of ~$4800 per month (started new job out of college almost 2 years ago now). This probably puts you in the 22% tax bracket if you are single. I have about $30k in a checking account and $5k in savings. This money can be your emergency fund. I don’t real...
by retiredjg
Sat Feb 24, 2018 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Reallocating --> Need ideas to minimize tax
Replies: 8
Views: 351

Re: Reallocating --> Need ideas to minimize tax

Can't help you with Idea 1. If you decide on Idea 2, I might not sell past the point at which LTCG tax goes from 15% to 18.6% due to the Medicare Surtax. I believe that is an MAGI of $250k, but you should check that. Sell the high cost mutual funds first to eliminate the high expense ratios. Then se...
by retiredjg
Sat Feb 24, 2018 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Inherited stocks, what would you do?
Replies: 15
Views: 1054

Re: Inherited stocks, what would you do?

If you need the money for a short term goal, it should not be in stocks. Whether you transfer in kind and then sell or just sell where they are depends on the total fees for the transactions. And the hassle factor.
by retiredjg
Sat Feb 24, 2018 7:26 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 180
Views: 13182

Re: What if you only live off dividends?

Is it still true that it costs more in taxes to get a dividend than to sell shares? I believe that hasn’t been the case since the early 2000s. It is still true if you are comparing long term capital gains from stocks to dividends from bonds. But if you are thinking of stock qualified dividends vs s...
by retiredjg
Fri Feb 23, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth IRA
Replies: 3
Views: 346

Re: Vanguard Roth IRA

Welcome to the forum. What you invest in should be chosen while considering the other investments you already have. For this reason, we encourage people to post their entire financial picture. You can see how this is done in the link at the bottom of this message. However, I think we can get you sta...
by retiredjg
Fri Feb 23, 2018 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Reverse a backdoor roth due to new IRA account
Replies: 8
Views: 392

Re: Reverse a backdoor roth due to new IRA account

You are stalking me! Lucky for me, I'd rather someone politely correct my mistakes than be silent.

Maybe I should just give it up for today and go watch the Olympics? :happy
by retiredjg
Fri Feb 23, 2018 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Reverse a backdoor roth due to new IRA account
Replies: 8
Views: 392

Re: Reverse a backdoor roth due to new IRA account

You will be recharacterizing the Roth conversion step of the back door. This will put the $5,500 into tIRA as a non-deductible contribution. This IRA and the SIMPLE are considered 1 IRA by the IRS, so she will never be able to convert this tIRA to Roth without pro-rating until the SIMPLE is rolled i...
by retiredjg
Fri Feb 23, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

2. Withdraw $5500 after Oct. You lose the $330, but if you have 1k gains being left behind, this isn't a bad deal. Also, no amending. I'm not sure I would have thought of this option - waiting till after mid October - but it does seem to be the easiest thing to do in the long run. As I understand i...
by retiredjg
Fri Feb 23, 2018 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

The motivation may be that if it was taxed in the year of the withdrawal somebody over 59.5 (no 10% penalty on earnings) could use a large ineligible contribution to move income into the next year. At one time shifting income was forefront of many tax avoidance methods. There are quite a few clause...
by retiredjg
Fri Feb 23, 2018 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

So that is the only thing you have called "IRA", right?
by retiredjg
Fri Feb 23, 2018 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Spousal deductible Trad Contribution
Replies: 15
Views: 805

Re: Spousal deductible Trad Contribution

Is Peace Corp income taxable? Publication 590 says you can only contribute to IRA taxable compensation . Apparently it is taxable. Could not find a more recent version of this Guide, but maybe it will be helpful for the IRA and other things too. http://files.peacecorps.gov/multimedia/pdf/policies/ta...
by retiredjg
Fri Feb 23, 2018 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

Prince, this is getting confusing. First you had an IRA with your 401k contributions, then it was Roth IRA, then the Roth IRA is a Rollover IRA.....terminology is important here and the answer is different depending on what you have. Maybe you could just list everything you have called IRA and what ...
by retiredjg
Fri Feb 23, 2018 7:32 am
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

No. The earnings will go on your 2018 taxes because that is when you will receive them. No. John is correct, the earnings will go on his 2017 taxes because that's what the law says: Earnings Includible in Income You must include in income any earnings on the contribu- tions you withdraw. Include th...
by retiredjg
Thu Feb 22, 2018 9:10 pm
Forum: Personal Consumer Issues
Topic: Mental Accounting -- How to solve problem
Replies: 31
Views: 2718

Re: Mental Accounting -- How to solve problem

You really shouldn’t have unexpected expenses. Just because an expense is large does not mean it is unexpected. You will need to be able to cover any of these that could be applicable. This is an interesting point. People tend to think of expenses as "unexpected" when we don't know when they will s...
by retiredjg
Thu Feb 22, 2018 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal deductible Trad Contribution
Replies: 15
Views: 805

Re: Spousal deductible Trad Contribution

IndigoE wrote:
Thu Feb 22, 2018 4:39 pm
Can I contribute all of mine and some of his to reach the $6500 max?
You didn't say it, but I gather you are not yet 70.5.

I think you can do what you are considering. I also think he could use Roth IRA instead (no age limit for Roth IRA). And so could you if you want.
by retiredjg
Thu Feb 22, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Why paying off loans would be better than fully funding 401k?
Replies: 97
Views: 7006

Re: Why paying off loans would be better than fully funding 401k?

P.S. If you have the 3 fund portfolio, you already have small cap value. You are correct. 3% of the index fund, I believe. Was thinking of a little bit of SCV tilt. You can certainly have a tilt if you want one. But you absolutely should NOT put your emergency fund into stocks, especially one of th...
by retiredjg
Thu Feb 22, 2018 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

If I understand your situation correctly, yes. What I think you have told us is that you have a Rollover IRA with tax-deferred contributions. You are not interested in the back door. Therefore, you should NOT want to recharacterize your 2017 contribution to the tIRA. In what I understand is correct,...
by retiredjg
Thu Feb 22, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Why paying off loans would be better than fully funding 401k?
Replies: 97
Views: 7006

Re: Why paying off loans would be better than fully funding 401k?

P.S. If you have the 3 fund portfolio, you already have small cap value.
by retiredjg
Thu Feb 22, 2018 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Why paying off loans would be better than fully funding 401k?
Replies: 97
Views: 7006

Re: Why paying off loans would be better than fully funding 401k?

Another question on EF. Would it be OK once I have a decent amount in savings account to start putting EF $s into a taxable account? Was thinking it will grow faster and if down, could TLH for tax credit. Would invest in something like VBR (small cap value index fund) since I don't have anything li...
by retiredjg
Thu Feb 22, 2018 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Help invest an extra $5,000 per month
Replies: 19
Views: 2133

Re: Help invest an extra $5,000 per month

That's a lot of "extra" money - you can address many goals with it. I'd put some in taxable and some on the mortgage. Granted, paying down the mortgage is not the most pressing financial issue, but you apparently want to get rid of that debt earlier than scheduled. There is nothing wrong with doing ...
by retiredjg
Thu Feb 22, 2018 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Messy Portfolio -- Please Help - TIA!
Replies: 39
Views: 3099

Re: Messy Portfolio -- Please Help - TIA!

Taxable (Both) 10.5% 4.85% 69K V. Long-Term Tax-Exempt Fund Admiral Shares (0.09) <-in your tax bracket, -you are probably getting less return on this than a taxable bond fund (I have not checked. Have you?) I just checked. You are correct, a taxable fund (like V. Long-Term Investment-Grade Fund Ad...
by retiredjg
Thu Feb 22, 2018 6:35 am
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

I already have a 401k through my current employer, the Vanguard account is just my amount from previous employer 401ks rolled in. Based on what you said I am guessing it is non-deductible. This guess is probably incorrect. It sounds like what you have is a rollover IRA containing the tax-deferred c...
by retiredjg
Thu Feb 22, 2018 6:13 am
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

I bought VBLTX with it, so the earnings on that excess $550 (x2) is jack, any tax penalty on those earnings is jack, and even a 6% tax hit on the contrib excess isn't worth any extra hassle to me. What's the EASIEST way for me to handle this? If you want to just be done with it, call your custodian...
by retiredjg
Wed Feb 21, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 17
Views: 719

Re: Roll Mega backdoor Roth account into backdoor Roth account

Just my usual reminder to keep up with how every penny gets into your Roth IRA account. You'll need that info if you take money out prior to age 59.5. :happy
by retiredjg
Wed Feb 21, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 17
Views: 719

Re: Roll Mega backdoor Roth account into backdoor Roth account

You're right, USAA funds suck bad. SO do their CD's and margin rates. But USAA allows me to trade all FIDO funds for free, so my USAA Roth IRA currently holds the same fund FIDELITY TOTAL MKT INDEX PREMIUM CL (FSTVX) as my FIDO Roth. Talking to USAA now to initiate the transfer. Well then, that's a...
by retiredjg
Wed Feb 21, 2018 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 17
Views: 719

Re: Roll Mega backdoor Roth account into backdoor Roth account

Consider the reverse - rolling your Roth IRA to Fidelity for a better choice of low cost funds. USAA is reported to be great for insurance and banking, but they don't seem to be very interested in low cost index fund investing. They offer a very limited selection under their own name and a cumbersom...
by retiredjg
Wed Feb 21, 2018 11:28 am
Forum: Investing - Help with Personal Investments
Topic: 403b and backdoor roth
Replies: 2
Views: 129

Re: 403b and backdoor roth

Yes.

You might check to be sure your income is still too high after contributing the $18,500 to the 401k.
by retiredjg
Wed Feb 21, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: TLH in a 3-fund portfolio with the same funds in taxable and tax-advantaged
Replies: 10
Views: 645

Re: TLH in a 3-fund portfolio with the same funds in taxable and tax-advantaged

If I were going to set up a taxable account, I'd put Total Stock and Total International in there and use only 500 index/extended market in the IRA(s). If possible, I'd put all the international into taxable. If not, use Developed Markets/Emerging Markets in the IRA(s) and call it close enough. If y...
by retiredjg
Wed Feb 21, 2018 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3225

Re: Tax Penalty on Roth IRA

"Withdraw" your contribution does not mean you go to the internet and take the money out of your account. It means contacting the custodian and telling them you want to withdraw (return) your 2017 contribution and its associated earnings. It makes it like the contribution never happened. I believe y...
by retiredjg
Wed Feb 21, 2018 9:09 am
Forum: Personal Consumer Issues
Topic: What UN-frugal thing do you do?
Replies: 165
Views: 7991

Re: What UN-frugal thing do you do?

I spend a lot on quality food and my dogs. Other things....not so much.
by retiredjg
Wed Feb 21, 2018 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Messy Portfolio -- Please Help - TIA!
Replies: 39
Views: 3099

Re: Messy Portfolio -- Please Help - TIA!

This is progress. If you wish to discuss what funds to be using, let us know. About the spacing problem, I noticed a problem when I was adding my comments to your comments. Some things just would not do what they were supposed to do even with numerous tries. I thought it was the result of all the fo...
by retiredjg
Wed Feb 21, 2018 8:48 am
Forum: Investing - Help with Personal Investments
Topic: <gulp> Expensive mistake
Replies: 51
Views: 7932

Re: <gulp> Expensive mistake

I am absolutely sick and unsure how to proceed. This is a disappointment, but being "absolutely sick" over it may be putting too much importance on it. You were accidentally at a lower stock to bond ratio than desired for a few months. In the long run, this will not be a big deal and it certainly w...