Search found 43560 matches

by retiredjg
Sat Apr 10, 2021 5:28 pm
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 6
Views: 380

Re: How do I self-manage and completely change my portfolio?

Thank you! It looks like the information asked for is only the specifics of my portfolio. I'm not shy about providing more numbers if it would help, such as net worth, income, and expenses. Do people provide that info or is that too much and unnecessary? You can add more if you want. But please fol...
by retiredjg
Sat Apr 10, 2021 4:06 pm
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 6
Views: 380

Re: How do I self-manage and completely change my portfolio?

Thank you so much!! I will work on getting all that information together to post ASAP! I also really appreciate the advice to look into Vanguard's services. Will post all my financial details as soon as I can get them put together. No rush. Take your time. Doing it right is more important than doin...
by retiredjg
Sat Apr 10, 2021 3:29 pm
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 6
Views: 380

Re: How do I self-manage and completely change my portfolio?

Welcome to the forum. :happy If you wish to simply your portfolio, move to ETFs, and eventually take the portfolio over to manage yourself, you cannot do better than Vanguard's Personal Advisor Service. They charge .3% instead of the 1% your are considering. They will move your money to a simple por...
by retiredjg
Sat Apr 10, 2021 3:16 pm
Forum: Investing - Theory, News & General
Topic: Using savings draw down instead of Roth conversion
Replies: 9
Views: 399

Re: Using savings draw down instead of Roth conversion

If you do this for enough years, you will not have an RMD problem. If you plan to do it for 2 or 3 years, you need to do conversions as well if you want to avoid high RMDs. I was thinking age 66-70. But I was also thinking that if the market/our portfolio returns an average of 5% it would be mostly...
by retiredjg
Sat Apr 10, 2021 3:10 pm
Forum: Investing - Theory, News & General
Topic: Traditional IRA to Roth IRA - backdoor
Replies: 4
Views: 283

Re: Traditional IRA to Roth IRA - backdoor

yadbugee, it is not clear from your post that you even need to use the backdoor in order to contribute to Roth IRA. Are you over the limit? If yes, you have the right idea, but there are dozens of ways that people manage to do this wrong and fixing it can be gruesome. So do some thorough research be...
by retiredjg
Sat Apr 10, 2021 3:03 pm
Forum: Investing - Theory, News & General
Topic: Using savings draw down instead of Roth conversion
Replies: 9
Views: 399

Re: Using savings draw down instead of Roth conversion

If you do this for enough years, you will not have an RMD problem. If you plan to do it for 2 or 3 years, you need to do conversions as well if you want to avoid high RMDs.
by retiredjg
Sat Apr 10, 2021 2:58 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 15
Views: 826

Re: Is it possible to open and fund a Roth IRA for my kid

Thanks, this makes sense. Hypothetically lets say a few years down the line my kid finds a small part time job like in a store or something and he makes small amounts of money. Does he need to contribute to this IRA from his own earned money. My point is if the kid makes some money he will surely s...
by retiredjg
Sat Apr 10, 2021 2:54 pm
Forum: Personal Investments
Topic: Question about Roth and Traditional 401K contributions...
Replies: 3
Views: 193

Re: Question about Roth and Traditional 401K contributions...

The limit for "elective deferrals" is $19.5k. That can be traditional 401k and/or Roth 401k and includes whatever goes into the new plan.
by retiredjg
Sat Apr 10, 2021 2:51 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 15
Views: 826

Re: Is it possible to open and fund a Roth IRA for my kid

Thank you. This makes sense. One hypothetical question about earned income though. What about people who have no "income" but live off inheritance or something like that. Can they have a Roth IRA and invest in that? Like trust fund kids we keep hearing about :-D They can "have" ...
by retiredjg
Sat Apr 10, 2021 2:49 pm
Forum: Investing - Theory, News & General
Topic: Using savings draw down instead of Roth conversion
Replies: 9
Views: 399

Re: Using savings draw down instead of Roth conversion

Would that act technically as a Roth conversion if we use some of that money up before our RMD's kick in? No, it would not act as a Roth conversion. But it would accomplish the same thing as a Roth conversion in that it would reduce your tax-deferred accounts. Whether it reduces your tax-deferred a...
by retiredjg
Sat Apr 10, 2021 2:44 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 15
Views: 826

Re: Is it possible to open and fund a Roth IRA for my kid

Some kids actually earn income. The most common example is child model or actor for the very young ones. Maybe lawnmowing, babysitting, or dog walking for the older ones. I doubt that mowing the family yard or babysitting the younger sibling or walking the family dog will do. I think some people may...
by retiredjg
Sat Apr 10, 2021 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect Tax Calculation by IRS FreeFile
Replies: 4
Views: 187

Re: Incorrect Tax Calculation by IRS FreeFile

Ordinary income is taxed using 1 set of tables. Long term capital gains and qualified dividends are taxed using a different table. Would that explain it?

Or is there a tax credit?
by retiredjg
Sat Apr 10, 2021 8:55 am
Forum: Personal Investments
Topic: Rebalance Tax Quandry
Replies: 10
Views: 768

Re: Rebalance Tax Quandry

If you are in a very low tax bracket, you might be able to sell some of the total stock and pay 0% on long term capital gains. In order to do this, your taxable income (not AGI) including the LTCG would need to be less than $80,800.
by retiredjg
Sat Apr 10, 2021 8:27 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1555

Re: Backdoor Roth in Vanguard question

JPM, this is what I think is happening. From the Forms 8606, it appears to me that your tax person has been (more or less) doing the form correctly each year. But she was not doing what you thought she was doing. In other words, she was entering the 1099's for the right year even though you thought ...
by retiredjg
Fri Apr 09, 2021 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Removing non-deductible portion from t-IRA
Replies: 4
Views: 313

Re: Removing non-deductible portion from t-IRA

I had a couple years where I accidentally contributed to my t-IRA when my wife and I were in the phase-out income limits. I corrected our tax returns, but that now leaves a non-deductible portion mixed in my account. Instead of endless proration, I was told I could unmix the deductible and non-dedu...
by retiredjg
Fri Apr 09, 2021 3:42 pm
Forum: Investing - Theory, News & General
Topic: How often (if ever) should I rebalance my Thrift Savings Plan?
Replies: 4
Views: 406

Re: How often (if ever) should I rebalance my Thrift Savings Plan?

Periodically, you should nudge your allocation back to or toward its target. Otherwise, there is no reason to have a target. Also it gives you the opportunity to take some gains and buy an asset class that is lagging (which also means it is cheap). Right now, your small cap is too high and your inte...
by retiredjg
Fri Apr 09, 2021 11:41 am
Forum: Personal Investments
Topic: Please Help: After tax - non Roth 401k?
Replies: 10
Views: 899

Re: Please Help: After tax - non Roth 401k?

Here is a little more clarification. A 401k can accept 3 different kinds of contributions from an employee (although not all plans have all options): -tax-deferred -Roth -after tax that is not Roth The first two buckets on the list are where your contributions (elective deferrals) go each year. It i...
by retiredjg
Fri Apr 09, 2021 11:19 am
Forum: Personal Investments
Topic: Allocate 401k by contribution source
Replies: 15
Views: 903

Re: Allocate 401k by contribution source

Heya, So, I've legit never noticed this option in Vanguard, because it is so subtle. But when I'm setting my allocation from my paycheck there is a small button above the funds that says "allocate by source." It seems like I can pick where the company match goes vs my actual money. From w...
by retiredjg
Fri Apr 09, 2021 11:14 am
Forum: Personal Investments
Topic: Investment Timing
Replies: 6
Views: 391

Re: Investment Timing

What would be your advice for getting these available funds into the market, specifically with respect to the timing of doing it and where the market is today. I'd suggest you buy enough fixed income/bonds to get you to 64/36. If there is anything left, invest it at 64/36. Asset allocation is not s...
by retiredjg
Fri Apr 09, 2021 11:05 am
Forum: Personal Investments
Topic: TSP asset allocation
Replies: 11
Views: 918

Re: TSP asset allocation

If you want 60% stocks and 40% fixed with about 40% of your stocks in international, it is perfect. :happy Some people would use some F Fund or even all F fund, some would use less (or more) international. Some would use a different ratio of C Fund to S fund. None would necessarily be any better or ...
by retiredjg
Fri Apr 09, 2021 10:50 am
Forum: Investing - Theory, News & General
Topic: Gains Harvest or Loss Harvest in Retirment? Or both?
Replies: 2
Views: 282

Re: Gains Harvest or Loss Harvest in Retirment? Or both?

Gains harvesting can be a definite plus if you actually spend money from taxable and if you eventually move out of the 0% bracket (or it goes away). If the money in taxable goes to heirs or charity, there is no benefit I can think of. Heirs get a stepped up bonus. Charities don't pay the tax anyway....
by retiredjg
Fri Apr 09, 2021 8:21 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1555

Re: Backdoor Roth in Vanguard question

I don't know what happened, but both links now required permission.
by retiredjg
Fri Apr 09, 2021 7:37 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1555

Re: Backdoor Roth in Vanguard question

The link works. It will take some time and brain power to figure out what has been done, so be patient.

Do you have any records of the dates these contributions were made?

Is there an answer to my question above?
by retiredjg
Fri Apr 09, 2021 7:24 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1555

Re: Backdoor Roth in Vanguard question

JPM, your link requires a reader to ask for access. I doubt that many will do that. If you cannot figure out a way to make it available without asking for permission, you could just report the numbers here. A hassle but do-able. As I mentioned, I've always done the 6000 or 5500 non-deductible contri...
by retiredjg
Fri Apr 09, 2021 6:15 am
Forum: Personal Investments
Topic: What is a good asset allocation for us?
Replies: 17
Views: 1497

Re: What is a good asset allocation for us?

This seems like an incredibly important ratio, especially if I’m going to marry myself to it in order to “stay the course.” I do feel some pressure to get this pension lump sum to its destination VG funds, so it's not just sitting in the default account. So I will have to finalize my ratio decision...
by retiredjg
Thu Apr 08, 2021 4:20 pm
Forum: Personal Investments
Topic: What is a good asset allocation for us?
Replies: 17
Views: 1497

Re: What is a good asset allocation for us?

David Jay wrote: Thu Apr 08, 2021 4:06 pm This makes AA intensely personal. It is a negotiation between the head and the gut.
Such lovely wording and so true!
by retiredjg
Thu Apr 08, 2021 4:18 pm
Forum: Personal Investments
Topic: What is a good asset allocation for us?
Replies: 17
Views: 1497

Re: What is a good asset allocation for us?

If you are risk averse, the 45% stock allocation is one of several that could be a good choice. I would go no higher than 50% stocks (which may not suit you) and no lower than 40% stocks now (you are both fairly young) and 30% stocks later on. However, all of this depends on how much money you have ...
by retiredjg
Thu Apr 08, 2021 3:22 pm
Forum: Personal Investments
Topic: TSP asset allocation
Replies: 11
Views: 918

Re: TSP asset allocation

Thank you. We will use the individual funds,C,S,I, G,F That would make it very easy. You would need to change the percentages for all the money that is in there now (interfund transfer page) as well as the money that is going in with new contributions. Once a year, see how far things have wandered ...
by retiredjg
Thu Apr 08, 2021 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree tax planning confusion re AGI / MAGI Roth / IRMAA
Replies: 3
Views: 327

Re: Retiree tax planning confusion re AGI / MAGI Roth / IRMAA

That's a definite downside of tax software....we tend to be unaware of how the different parts of our tax information interact. But that good ole 1040 lays it right out there for everyone to see. After I print out my Turbotax return, I write notes for many of the entries to remind myself in later ye...
by retiredjg
Thu Apr 08, 2021 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Roth 401k RMD's
Replies: 10
Views: 791

Re: Roth 401k RMD's

So what can I do at this point? Could I open up a Roth IRA account (in Vanguard for example) and roll my Roth 401k money into the Vanguard account? Would taxes be owed? Would this get counted as income for tax purposes? I'm not sure this point was clear from other responses. You can roll that Roth ...
by retiredjg
Thu Apr 08, 2021 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree tax planning confusion re AGI / MAGI Roth / IRMAA
Replies: 3
Views: 327

Re: Retiree tax planning confusion re AGI / MAGI Roth / IRMAA

It can be confusing, but the differences do matter. It is good that you are looking at this. Roughly speaking, AGI is your total income plus a few things (Schedule 1, part I) and minus some adjustments (which you can look at on Schedule 1, Part II). It is possible that you do not have additional inc...
by retiredjg
Thu Apr 08, 2021 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Roth 401k RMD's
Replies: 10
Views: 791

Re: Roth 401k RMD's

So what can I do at this point? Could I open up a Roth IRA account (in Vanguard for example) and roll my Roth 401k money into the Vanguard account? Would taxes be owed? Would this get counted as income for tax purposes? I'm not sure this point was clear from other responses. You can roll that Roth ...
by retiredjg
Thu Apr 08, 2021 1:20 pm
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1555

Re: Backdoor Roth in Vanguard question

jeanpierremelville, you are going to need to reconstruct each contribution and each conversion and compare it to the various 8606 forms. If you have indeed been doing what you said, every form is wrong since the first one. However, it is unclear if you paid taxes on the wrong amount or not. It appea...
by retiredjg
Thu Apr 08, 2021 1:00 pm
Forum: Non-US Investing
Topic: IRA to Roth Backdoor expat
Replies: 9
Views: 477

Re: IRA to Roth Backdoor expat

Not sure what to tell you. Many tax-preparers somehow miss a non-deductible contribution to traditional IRA. It is not uncommon at all. If you can show you made non-deductible contributions to tIRA (not contributions to Roth IRA), a person here could do that now by filing old Forms 8606. I don't kno...
by retiredjg
Thu Apr 08, 2021 9:39 am
Forum: Non-US Investing
Topic: IRA to Roth Backdoor expat
Replies: 9
Views: 477

Re: IRA to Roth Backdoor expat

Dig deeper.

Roth IRA contributions are never deductible so you don't have to dig there.

Traditional IRA contributions may or may not be deductible, depending on income.
by retiredjg
Thu Apr 08, 2021 8:55 am
Forum: Personal Investments
Topic: TSP asset allocation
Replies: 11
Views: 918

Re: TSP asset allocation

Your idea is OK, but I'm not sure you have picked the right funds. The 2021 fund is already less than 50% stocks so I think you might want to start with the 2030 fund which will be about 60% stocks in July of this year. I did not check the progressions for each of the others, but the TSP website sho...
by retiredjg
Thu Apr 08, 2021 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion
Replies: 2
Views: 379

Re: Roth conversion

I have an existing traditional IRA (rolled over from previous 401k) and a SEP-IRA. Can I convert both of these into a Roth IRA? Will that avoid pro-rata if I do both and for the full amounts? Welcome to the forum. :happy Both a traditional IRA and a SEP IRA can be converted to Roth. I'm not sure if...
by retiredjg
Thu Apr 08, 2021 7:54 am
Forum: Personal Finance (Not Investing)
Topic: 401k distribution and taxes
Replies: 13
Views: 957

Re: 401k distribution and taxes

I tend to agree partially with MrJedi, but would also like to hear what Alan S thinks. My concern is that the $200 may have been a distribution to your wife which she later deposited in an IRA. This is OK except that to make it a complete rollover to IRA, she would have to "make up" the am...
by retiredjg
Thu Apr 08, 2021 7:19 am
Forum: Non-US Investing
Topic: IRA to Roth Backdoor expat
Replies: 9
Views: 477

Re: IRA to Roth Backdoor expat

Welcome to the forum. :happy As a long-time US expat living in Belgium (50yo), some years ago I invested some after-tax income in US IRA and Roth accounts for a few years. Regarding the money put into traditional IRA, did you make deductible contributions to tIRA or non-deductible contributions? If ...
by retiredjg
Wed Apr 07, 2021 7:16 pm
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1555

Re: Backdoor Roth in Vanguard question

For a few years, I've done the backdoor Roths by making the contributions in year X+1 and converting them a few days later but always selecting and reporting it for year X. What does "reporting it" mean? Did you actually report the 2018 contribution and the 2019 conversion on your 2018 ta...
by retiredjg
Wed Apr 07, 2021 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: When to hire a fee based CFP?
Replies: 12
Views: 690

Re: When to hire a fee based CFP?

The reason I'm considering the services of CFP is primarily to assist in navigating withdrawals, when to take SS, making sure we qualify for the best Medicare rate, managing RMDs, navigating through the tax implications of each of these decisions, etc etc These decisions are probably too far out in...
by retiredjg
Wed Apr 07, 2021 11:08 am
Forum: Personal Finance (Not Investing)
Topic: When to hire a fee based CFP?
Replies: 12
Views: 690

Re: When to hire a fee based CFP?

You can get started now by reading this forum and, when ready, posting your financial information in the format we use to hep people with their portfolio questions (link at bottom of this message).

You'll learn a lot and it's free.
by retiredjg
Wed Apr 07, 2021 10:34 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1555

Re: Backdoor Roth in Vanguard question

The contribution was for 2020 and is documented on the 2020 taxes. The conversion happened in 2021 and is documented with the 2021 taxes. So you can see there is no such thing as backdoor Roth for 2020, at least not in your case. Only the contribution is for 2020. You might want to check your previo...
by retiredjg
Wed Apr 07, 2021 10:27 am
Forum: Personal Investments
Topic: Do in-house funds lock you in to brokerage?
Replies: 7
Views: 276

Re: Do in-house funds lock you in to brokerage?

The Fidelity zero funds cannot be transferred out of Fidelity according to what has been written here. The Vanguard fund (not the ETF) has a transaction fee to buy. Fidelity has index funds that are not zero funds. If a mutual fund is what this investor wants, as opposed to an ETF, that is probably ...
by retiredjg
Wed Apr 07, 2021 7:59 am
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 2418

Re: Are converted Roth IRA Contributions Penalty Free Withdrawal?

Doc 7, I made a change on the ordering rules I had posted yesterday. I had put rollovers by year and that is not correct for Roth 401k. Since Alan S. says the 1099 should be blank in box 2a (taxable amount), you might want to check your 2014 taxes just to be sure that $13,999.89 didn't get entered a...
by retiredjg
Wed Apr 07, 2021 7:28 am
Forum: Personal Investments
Topic: Novice Portfolio Review Request
Replies: 4
Views: 638

Re: Novice Portfolio Review Request

1. Is 40% too high for international stock allocation? I know this is a personal preference but I've seen a pretty wide spectrums of recommendations and wanted to understand if I'm going against the general consensus. 40% is reasonable if that is your preference. Market weight tends to run a little...
by retiredjg
Tue Apr 06, 2021 6:48 pm
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 2418

Re: Are converted Roth IRA Contributions Penalty Free Withdrawal?

Doc7, this is not a conversion. It is a rollover. It is handled differently. I think the list I posted above needs a minor revision about rollovers, but I need to do some research first. The contributions to Roth 401k should flow into Roth IRA basis (like direct contributions), but I know I've seen ...
by retiredjg
Tue Apr 06, 2021 4:41 pm
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 2418

Re: Are converted Roth IRA Contributions Penalty Free Withdrawal?

Great idea, but suggest a change.

Row B is not taxable income - you already paid taxes on it when you did the conversion. It will not be taxed again. It is, however, subject to the 10% penalty if the 5 tax year conversion clock is not finished running.
by retiredjg
Tue Apr 06, 2021 3:37 pm
Forum: Investing - Theory, News & General
Topic: “Bogleheads’ Guide To Investing” Portfolios - 50% in TIPS?
Replies: 25
Views: 2984

Re: “Bogleheads’ Guide To Investing” Portfolios - 50% in TIPS?

I am looking for thoughts on the importance of balancing the Total Bond Market fund with a TIPS fund, perhaps 50/50. Several years ago, suggesting half TIPs was common around here. Then there were some discussions about whether TIPS are needed while working (because your salary should keep up with ...
by retiredjg
Tue Apr 06, 2021 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Taxes - confirm or correct me?
Replies: 10
Views: 530

Re: Question on Taxes - confirm or correct me?

Yes. Assuming you don't have other income to add to AGI...such as interest from savings accounts and capital gains /dividends from investments in a taxable brokerage account.