Search found 33760 matches

by retiredjg
Wed Oct 17, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Why not pick Vanguard Intermediate-Term Tax Exempt Fund??
Replies: 10
Views: 1002

Re: Why not pick Vanguard Intermediate-Term Tax Exempt Fund??

Are you saying that your tax-deferred accounts (both of them together) are not large enough to hold your bond allocation?
by retiredjg
Wed Oct 17, 2018 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal IRA contributions
Replies: 2
Views: 126

Re: Spousal IRA contributions

Agree with Duckie. Spouse B can make $0 a year and still contribute $5,500 based on joint salary. More if Spouse B is over 50 or older.
by retiredjg
Wed Oct 17, 2018 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion - getting conflicting info about taxes
Replies: 7
Views: 524

Re: Roth conversion - getting conflicting info about taxes

It appears the second rep was thinking about a conversion where there is some basis (already taxed money) in the IRA.

As already said a few times, if your IRA is purely untaxed money, you only pay tax on the amount you convert. You can leave the rest in the IRA to convert to Roth another year.
by retiredjg
Wed Oct 17, 2018 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Evaluation of Portfolio
Replies: 2
Views: 252

Re: Evaluation of Portfolio

I think I must be missing something. The portfolio has too much in stocks and too little in bonds. The only solution is to sell something on the stock side. Do this for living expenses and do more if needed to get back close to the target of 60% bonds. I gather the retiree does not wish to sell the ...
by retiredjg
Wed Oct 17, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple Backdoor Roth Conversions each year for same tax year
Replies: 8
Views: 300

Re: Multiple Backdoor Roth Conversions each year for same tax year

But yes, you can do multiple contributions and conversions - there will only be one 1099 form for each person unless you are using more than one custodian for a person's IRAs.
by retiredjg
Wed Oct 17, 2018 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple Backdoor Roth Conversions each year for same tax year
Replies: 8
Views: 300

Re: Multiple Backdoor Roth Conversions each year for same tax year

Many thanks everyone! Given I have until April 2019 to contribute for 2018, I'll just try and save up the full $11,000 and then do both at once. If you do that, you'll be splitting the paperwork. This is not a terrible burden, but it must be done right. A contribution is recorded with the taxes of ...
by retiredjg
Wed Oct 17, 2018 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: would you buy bonds or corporate bonds now?
Replies: 12
Views: 969

Re: would you buy bonds or corporate bonds now?

The best place to hold bonds is in your work plan if you have one. What do you have available?
by retiredjg
Wed Oct 17, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Any benefit to a 403b with a 1.25% wrap fee vs a Taxable with zero Fees
Replies: 10
Views: 393

Re: Any benefit to a 403b with a 1.25% wrap fee vs a Taxable with zero Fees

I would not expect a 1.25% wrap fee for a 457b account. Are you absolutely sure?

Is the 457 a state plan? If not, educators can often use a state plan. See if you can. Might take some work on your part.
by retiredjg
Wed Oct 17, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Finally ready to start investing in RothIRA (23yrs old)
Replies: 12
Views: 685

Re: Finally ready to start investing in RothIRA (23yrs old)

It is unclear, but it appears your money is at Schwab and you are thinking of buying Vanguard funds. Don't do that. You can buy a Schwab Target INDEX fund and get everything you need in one fund with the money you have there right now. There is no need to do anything else. Be sure you find the Index...
by retiredjg
Wed Oct 17, 2018 3:09 pm
Forum: Investing - Theory, News & General
Topic: Too Much APPL Stock
Replies: 12
Views: 1028

Re: Too Much APPL Stock

I think 12% might be a little too much but it is not a disaster waiting to happen this week. If you have other individual stocks, you might need to trim them all. I think 5% to 10% is more than enough. It is hard to imagine Apple ever failing, but Sears failed this week and that would have been comp...
by retiredjg
Wed Oct 17, 2018 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: Why not pick Vanguard Intermediate-Term Tax Exempt Fund??
Replies: 10
Views: 1002

Re: Why not pick Vanguard Intermediate-Term Tax Exempt Fund??

Much appreciated. No option to buy either in my tax-deferreds, so I'll stick with tax exempt in my taxable.Thanks to all! I think you might be mistaken about this. You have a 401k and a 457b. Each should have at least one bond fund option, maybe several choices. Yes, maybe you can't buy that exact ...
by retiredjg
Wed Oct 17, 2018 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Why not pick Vanguard Intermediate-Term Tax Exempt Fund??
Replies: 10
Views: 1002

Re: Why not pick Vanguard Intermediate-Term Tax Exempt Fund??

The allure of "tax free income" is strong. But unless you are in a high tax bracket, you can actually make less money even considering that there were no taxes to pay! If you can, hold your bonds in a tax-deferred account and pay taxes when you withdraw the money. If you need to hold bonds in a taxa...
by retiredjg
Wed Oct 17, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Exceeding Income Limit for Roth IRA Mid-Year?
Replies: 10
Views: 728

Re: Exceeding Income Limit for Roth IRA Mid-Year?

Your Rollover IRA might be rolled into your current 401k. Ask them. If you can get it into your 401k, you could use the back door. Her SIMPLE IRA is definitely in the way and she should not use the back door. But that does not affect you. The money intended for Her Roth can be invested in a taxable ...
by retiredjg
Wed Oct 17, 2018 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Help simplify my portfolio
Replies: 7
Views: 584

Re: Help simplify my portfolio

Can you explain a "wash sale"? See the Wiki for a better response. Here's the short version. If you hold XXX in taxable and sell it at a loss, you expect to take that loss off your taxes. If you also hold XXX in an IRA or another taxable account you cannot buy any of it within 30 days (or is it 31?...
by retiredjg
Wed Oct 17, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Investment mix advice
Replies: 1
Views: 119

Re: Investment mix advice

Welcome to the forum. Asking about your taxable account is not going to get you very good answers if people do not know what is in the other accounts. You will likely get more reliable answers if you post your question in the format we use to help people with their portfolios. See the link below for...
by retiredjg
Wed Oct 17, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: What to do with variable annuity at retirement age?
Replies: 7
Views: 325

Re: What to do with variable annuity at retirement age?

What type of account is the variable annuity in?
by retiredjg
Wed Oct 17, 2018 9:54 am
Forum: Investing - Help with Personal Investments
Topic: help with asset location
Replies: 4
Views: 453

Re: help with asset location

1. Was keep all of the bond etf/funds in the IRA Would your entire bond allocation fit in the IRA? If yes, that is what I would do. 2. Was keep a mix of 50% Equity ETF and 50% bonds I can see that having some bonds and some stocks in each account can add some flexibility, but doing it 50/50 is not ...
by retiredjg
Wed Oct 17, 2018 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Exceeding Income Limit for Roth IRA Mid-Year?
Replies: 10
Views: 728

Re: Exceeding Income Limit for Roth IRA Mid-Year?

Is there anything that can or should be done now or just wait and deal with this when I file for my 2018 taxes? You have two choices and either of them is easier to do now than later. 1) Withdraw (get a return of ) the contribution so that it is like it never happened. This MUST be done through the...
by retiredjg
Wed Oct 17, 2018 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Am I hitting the important asset classes?
Replies: 9
Views: 888

Re: Am I hitting the important asset classes?

Desired Asset allocation: Uhh, stocks? This question is asking what you want your stock to bond ratio to be. This ratio determines most of the risk of your portfolio. It is the first and most fundamental decision to make about your portfolio. Until you make this decision, you can't do anything othe...
by retiredjg
Tue Oct 16, 2018 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: "MegaMillions and Powerball jackpots combined are now $1B" - Good investment?
Replies: 55
Views: 2648

Re: "MegaMillions and Powerball jackpots combined are now $1B" - Good investment?

The amount of pleasure I derive from getting lost in a fantasy about winning is worth way more than $20 to me. I probably spend $50 a month on average on lottery tickets, most often after a bad day at work. Ha ha! I guess the main reason I don't buy these tickets is because I DO NOT WANT TO WIN! I ...
by retiredjg
Tue Oct 16, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: "MegaMillions and Powerball jackpots combined are now $1B" - Good investment?
Replies: 55
Views: 2648

Re: "MegaMillions and Powerball jackpots combined are now $1B" - Good investment?

I do't think jackpots are an investment. But $20 for entertainment once in awhile doesn't seem alike a problem to me.
by retiredjg
Tue Oct 16, 2018 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard changing my Admiral shares to Investor Shares
Replies: 26
Views: 4470

Re: Vanguard changing my Admiral shares to Investor Shares

Wellington Investor shares are .25%. Wellington Admiral shares are .17% plus .3% for PAS (in other words....0.47%).

You are saving money! Or you could add some to the balance and get the lower ER.
by retiredjg
Tue Oct 16, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Relocation to California
Replies: 49
Views: 4068

Re: Relocation to California

My wife recently met her biological family who lives in the San Fernando Valley. In order for her to be closer to them and get to know them, we are thinking of relocating from Dallas to that area of California in about a year. My wife works from home so she would easily be able to make such a move....
by retiredjg
Tue Oct 16, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring $1.2 Mil taxable to Vanguard
Replies: 10
Views: 1471

Re: Transferring $1.2 Mil taxable to Vanguard

- Given most of my funds can transfer in kind to Vanguard, should i just do that before year-end 2018 and then figure out when to sell based on cost basis so that I can begin to move this money into an all-index portfolio? I want to get out of the 1% advisor fee for 2019. Since you have the large ca...
by retiredjg
Tue Oct 16, 2018 3:58 pm
Forum: Personal Consumer Issues
Topic: de-balling down comforter?
Replies: 7
Views: 571

Re: de-balling down comforter?

I would rinse it (final rinse cycle) and use tennis balls or wool dryer balls or the plastic dryer balls. Or even clean tennis shoes will work (been there and done that it and it was fine). I suspect the clean tennis shoes work best because they are much heavier than tennis balls and the rubber in t...
by retiredjg
Tue Oct 16, 2018 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Does Lifestrategy make sense in Roth IRA's
Replies: 23
Views: 2450

Re: Does Lifestrategy make sense in Roth IRA's

It would depend on many things - mostly which fund you put in taxable and your tax brackets. A person in a very high tax bracket would be paying unnecessary taxes at their top rate for the dividends the bonds in such an account would produce. A person in a lower tax bracket, not so much. But you onl...
by retiredjg
Tue Oct 16, 2018 8:34 am
Forum: Investing - Help with Personal Investments
Topic: Help simplify my portfolio
Replies: 7
Views: 584

Re: Help simplify my portfolio

You have about 1/3rd of your assets in "crowdfunding". We don't talk about that a lot around here. How does it work? Do you expect to make money on that or is this your way of being generous? A target fund is not a good choice for a brokerage account - the bonds in it are not tax-efficient (cause yo...
by retiredjg
Tue Oct 16, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: HELP with 457b Account
Replies: 11
Views: 530

Re: HELP with 457b Account

OK. I get it now. If that is the correct ER (inside your plan) for the LifeStrategy Growth fund , it does seem like a fund to use. I would move everything except the Fixed Income account into the LS Growth fund. Sell the amount of Fixed that you can sell now and do that again in February. That may g...
by retiredjg
Mon Oct 15, 2018 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: HELP with 457b Account
Replies: 11
Views: 530

Re: HELP with 457b Account

I also see I have the Vanguard LifeStrategy Growth Fund (ER .14%) available. Do you think that might be the best and cheapest option available? I guess this would be an easy option and wouldn't have to do any rebalancing. Obviously it will take me several years to clear out the fixed account fund a...
by retiredjg
Mon Oct 15, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Relocation to California
Replies: 49
Views: 4068

Re: Relocation to California

I suggest you put the move off for another year and visit a lot during the first 18 months to get a feel for where to live, what things costs, if you can find a job, etc. It would be wonderful if this all works out for you, but there's a lot of things that could make your life miserable if you make ...
by retiredjg
Mon Oct 15, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard won't return earnings with previous year ineligible contribution to Roth IRA
Replies: 5
Views: 733

Re: Vanguard won't return earnings with previous year ineligible contribution to Roth IRA

Might not be as much of a loophole as it seems. You will be paying a 6% tax on $5,500 for at least 1 year. That's $330 for each year the money is where it should not be. You've also lost all the earnings that $330 each year could make year after year. I suppose it could work out well for some people...
by retiredjg
Mon Oct 15, 2018 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Convert TIRA to Roth, nondeductible
Replies: 19
Views: 1089

Re: Convert TIRA to Roth, nondeductible

cheese_breath wrote:
Mon Oct 15, 2018 2:28 pm
retiredjg wrote:
Mon Oct 15, 2018 1:51 pm
....Consider how the taxes work. If you put $5,500 into tIRA you will pay tax on the front end.....
?????
This poster is not eligible to make a deductible contribution to IRA. So the money is taxed now.
by retiredjg
Mon Oct 15, 2018 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for 401k advice
Replies: 8
Views: 523

Re: Looking for 401k advice

Flyer24 wrote:
Mon Oct 15, 2018 2:09 pm
Oops..my bad. I was thinking it was the index. Thanks for the correction. In that case, use FXSTX.
You are not the first, nor will you be the last. Schwab has a similar fund called "total bond" that people mistook for an index fund for many years.
by retiredjg
Mon Oct 15, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Relocation to California
Replies: 49
Views: 4068

Re: Relocation to California

I don't know about Dallas, but living in CA is very expensive. Prices on everything go up as you cross the border. When I first moved there, I had no idea till I bought my first tank of gas - easily $1 to $1.50 a gallon more. That happened again when I traveled in CA a few years ago. You will also b...
by retiredjg
Mon Oct 15, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Kids not interested in money / allowance
Replies: 48
Views: 4345

Re: Kids not interested in money / allowance

If they were always waiting for their $5 each week and then spending it on garbage and asking for more, that is what I would consider uneducated and irresponsible. To me, there is nothing in your post that suggests they are not already "financially educated and responsible". :D Nevertheless, I'm sur...
by retiredjg
Mon Oct 15, 2018 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Convert TIRA to Roth, nondeductible
Replies: 19
Views: 1089

Re: Convert TIRA to Roth, nondeductible

I would not convert $150k (with $50k basis) to Roth while in that tax bracket. It would, in fact, push you into an even higher bracket. Wait until you are in a lower bracket. You are already paying what will probably be extra tax by using Roth 401k instead of traditional 401k (apparently you have yo...
by retiredjg
Mon Oct 15, 2018 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for 401k advice
Replies: 8
Views: 523

Re: Looking for 401k advice

Flyer24 wrote:
Wed Oct 03, 2018 8:17 pm
FXAIX 35%
VIEIX 15%
VTSNX 15%
FTBFX 35% <---did you mean for this to be the total bond market index? It is not. Yeah, a lot of people have been fooled.... :happy

More or less bonds depending on aggressive or conservative. I personally use Age -15 for bond allocation.
by retiredjg
Mon Oct 15, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for 401k advice
Replies: 8
Views: 523

Re: Looking for 401k advice

You can cut your costs by using only these funds (for current balance and contributions). Fidelity 500 Index Fund - Institutional Premium Class (FXAIX)(0.015%) Vanguard Extended Market Index Fund Institutional Shares (VIEIX)(0.06%) Vanguard Total International Stock Index Fund Institutional Shares (...
by retiredjg
Mon Oct 15, 2018 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Rules
Replies: 8
Views: 988

Re: Roth Rules

Since you are over 59.5 and do not have a Roth IRA started yet, you only have one 5 year rule to worry about - 5 tax years from the time you open your first Roth IRA. Your contributions (directly or by conversion) will not be affected because of your age If you open a Roth IRA this year, your 5 tax ...
by retiredjg
Mon Oct 15, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: HELP with 457b Account
Replies: 11
Views: 530

Re: HELP with 457b Account

If you cannot get out of that Fixed Plus Account as fast as you want, there could be other solutions. First, you can put all of your contributions into stock funds (none into bond funds) for awhile. Or you could shift something in another account. Do you have any other accounts? 403b? IRA? Roth IRA?...
by retiredjg
Mon Oct 15, 2018 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard won't return earnings with previous year ineligible contribution to Roth IRA
Replies: 5
Views: 733

Re: Vanguard won't return earnings with previous year ineligible contribution to Roth IRA

I think this might have to do with the fact that it is a 2016 contribution. It is too late to re-characterize it so the remedy is for you to pay excise tax on it for each year it is in the Roth IRA when it should not be there. When you do that, the earnings remain in the Roth IRA or at least that is...
by retiredjg
Mon Oct 15, 2018 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: Convert TIRA to Roth, nondeductible
Replies: 19
Views: 1089

Re: Convert TIRA to Roth, nondeductible

I assume the OP is saying that her Roth 401 will not accept a rollover from her traditional IRA, which I thought was true of all Roth 401s. "Roth 401k" is a commonly accepted term, but it is really just an ordinary 401k that accepts both pre-tax and Roth contributions. If what the original poster i...
by retiredjg
Mon Oct 15, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Schwab-specific TLH question - SCHF/SCHE
Replies: 11
Views: 413

Re: Schwab-specific TLH question - SCHF/SCHE

Yes you could but what are you going to do the next time you want to TLH? I'm not saying it can't be done. If you are very careful with purchases and reinvestment of dividends, wash sales could probably be avoided if you want to TLH again, but the easiest way is to be completely in 1 TLH partner or ...
by retiredjg
Mon Oct 15, 2018 9:13 am
Forum: Investing - Theory, News & General
Topic: Schwab-specific TLH question - SCHF/SCHE
Replies: 11
Views: 413

Re: Schwab-specific TLH question - SCHF/SCHE

I suppose I could also move into the corresponding Schwab mutual funds - while they track the same index, I'd postulate they are materially different securities since one is an ETF and one is a mutual fund (any thoughts there?). Following the same index at the same company.....not sure I'd go there...
by retiredjg
Mon Oct 15, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Convert TIRA to Roth, nondeductible
Replies: 19
Views: 1089

Re: Convert TIRA to Roth, nondeductible

AstroGirl wrote:
Mon Oct 15, 2018 7:43 am
I’ve been told my Roth 401 plan (Fidelity) won’t accept my IRA funds.
I'd look into this again. It is uncommon (but not impossible) for a 401k not to accept incoming IRA rollovers. A 401k that allows Roth contributions also offers traditional (pre-tax) contributions so that is not the problem.
by retiredjg
Mon Oct 15, 2018 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Maturing out of Target 2015 fund
Replies: 8
Views: 878

Re: Maturing out of Target 2015 fund

There are plenty of bond funds available, but I don't know of any bond funds that are "equally conservative" to a fund that has both stocks and bonds. All will be more conservative than your target fund except for junk bonds which is almost certainly not what you want. If you want a fund with both s...
by retiredjg
Mon Oct 15, 2018 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Entering distribution phase of retirement
Replies: 2
Views: 563

Re: Entering distribution phase of retirement

If your tax-deferred accounts are large, take money from there for your expenses and consider if you want to do Roth conversions so the tax-deferred balance will be lower when RMD time comes. Or....taking your expenses from taxable now will increase the "space" you have to do Roth conversions if you...
by retiredjg
Mon Oct 15, 2018 8:45 am
Forum: Investing - Help with Personal Investments
Topic: help with personal finance and alternatives
Replies: 7
Views: 439

Re: help with personal finance and alternatives

If the choices in the old 401k are not good, you will want to roll it somewhere eventually. If you know the new 401k will be a good one, wait and do that. If you don't know, wait anyway. You do not want to roll to Roth IRA because the entire amount would be taxable. Rolling to an IRA with low cost f...
by retiredjg
Mon Oct 15, 2018 7:20 am
Forum: Personal Consumer Issues
Topic: How do you buy a mattress ?
Replies: 31
Views: 2284

Re: How do you buy a mattress ?

My experience is that an RV bed may be called "queen" or "king", but they are often different sizes from standard. Do some measuring before you shop.
by retiredjg
Mon Oct 15, 2018 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Doing my own taxes?
Replies: 13
Views: 1372

Re: Doing my own taxes?

If you want to do your taxes, that's fine, but you have not made a compelling financial argument that it needs to be done.