Search found 32588 matches

by retiredjg
Tue Jun 19, 2018 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Morgan Stanley Target date portfolios?
Replies: 19
Views: 821

Re: Morgan Stanley Target date portfolios?

I asked for a list of index funds. He came back with this: "I would suggest that the average net expense ratio of 0.65% or 0.64% is very reasonable and cost effective for a combination of active and passive managers, and a diversified portfolio. Combine that with the 0.72% advisory fee (Morgan Stan...
by retiredjg
Tue Jun 19, 2018 9:44 am
Forum: Investing - Help with Personal Investments
Topic: Investment Help Retirement implications
Replies: 15
Views: 750

Re: Investment Help Retirement implications

Makes it hard to retire when I finally can save some money. It does not appear to me that you need to save any more money. In fact, you may already have too much in tax-deferred accounts. I need portfolio review - I'm scared to retire and scared to lose money and scared to spend the money I've save...
by retiredjg
Tue Jun 19, 2018 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Investment Help Retirement implications
Replies: 15
Views: 750

Re: Investment Help Retirement implications

I think you have more than enough money to retire. And it sounds like you really need to. This job is clearly affecting your outlook on life and probably your health. Likely even your heart.... :( I think your husband could probably retire as well if he wants, but that is less clear and since you ha...
by retiredjg
Tue Jun 19, 2018 7:12 am
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

Without going back and reading the entire thread.... sman09, CyclingDuo is pointing out something that you probably don't realize. This is a long thread and you have a number of other threads as well. Your information is all over the place. :happy For that reason, it is getting harder and harder to...
by retiredjg
Tue Jun 19, 2018 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

The Prioritizing investments wiki (https://www.bogleheads.org/wiki/Prioritizing_investments) says: "Contribute to the work-based plan (401(k), 403b,) enough to get the full employer match (the match is like free money, your best possible investment)," does the "enough to get the full employer match...
by retiredjg
Tue Jun 19, 2018 6:50 am
Forum: Investing - Help with Personal Investments
Topic: Morgan Stanley Target date portfolios?
Replies: 19
Views: 821

Re: Morgan Stanley Target date portfolios?

The plan is now to ask for what index funds are available to see if I can get away with a lower net ER using 3 funds. This is likely going to be your best option. If there is not a good bond index fund, you may have to explore further for a good bond fund or a stable value fund as a substitute. It ...
by retiredjg
Tue Jun 19, 2018 6:45 am
Forum: Investing - Theory, News & General
Topic: mega backdoor Roth -- why not stay in the roth 401(k)
Replies: 14
Views: 1091

Re: mega backdoor Roth -- why not stay in the roth 401(k)

So the advantage of doing this instead of rolling out to a Roth IRA is that I get...the ability to pull funds if I separate at age 55. You largely have this ability anyway. The after-tax money rolled out to Roth does not have a 5 year clock on it. It does "sit behind" the money that was taxed at th...
by retiredjg
Mon Jun 18, 2018 7:54 pm
Forum: Investing - Theory, News & General
Topic: mega backdoor Roth -- why not stay in the roth 401(k)
Replies: 14
Views: 1091

Re: mega backdoor Roth -- why not stay in the roth 401(k)

What is the tax situation for funds left in the after-tax plan? It sounds like it's more similar to a non-deductible traditional IRA. I suppose the earnings would be taxed coming out if left there, just like a non-deductible IRA? And so the purpose of rolling to a Roth is to avoid that? Yes. Leavin...
by retiredjg
Mon Jun 18, 2018 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Can I do both backdoor Roth and mega backdoor Roth?
Replies: 4
Views: 336

Re: Can I do both backdoor Roth and mega backdoor Roth?

Yes you can. But you need to make sure that the earnings in the after tax account of your 40Xx go into the Roth IRA, not into tIRA. Anything going into tIRA has the potential of messing up or ordinary back door.
by retiredjg
Mon Jun 18, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

Some jobs are exempt from SS. I don't know why....maybe because of the pension coming. Teachers seem to be in this group a lot.

If you pay into SS, you will get SS. It will be part of your taxable income in retirement.
by retiredjg
Mon Jun 18, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: New to VG. Tax hit on trsfr of proprietary fund?
Replies: 9
Views: 540

Re: New to VG. Tax hit on trsfr of proprietary fund?

You may be in a low enough tax bracket that there will be little to no tax. Depending on how much the gains (if any) add to your taxable income, the short term gains should be taxed at 12% and the long term gains taxed at 0%. You have not given us a lot to work with - this is my best guess. Well, if...
by retiredjg
Mon Jun 18, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Morgan Stanley Target date portfolios?
Replies: 19
Views: 821

Re: Morgan Stanley Target date portfolios?

You'll pay the net ER. Unless it changes. Yes, that is a high price to pay. If you are invested in this plan for a long time, the difference in the cost of the funds could be significant. It could be better to use individual funds instead. This is not that hard if the costs are significantly differe...
by retiredjg
Mon Jun 18, 2018 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

Do you contribute to SS now, out of every paycheck?

Do you have a history of jobs where you contribute to SS?

What about your spouse?
by retiredjg
Mon Jun 18, 2018 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA to Roth
Replies: 5
Views: 434

Re: Traditional IRA to Roth

There is no automatic need to do anything with the traditional IRA. It can sit.

If you feel the need to do something, you could roll it into a 401k or other work plan. I would not do that unless the work plan is a good one (meaning low cost).
by retiredjg
Mon Jun 18, 2018 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

also, what exactly were you referring by "Roth IRA or Roth 403b/457 for the rest. Let's say you plan to save $23k in a year. I'd put about $15k into tax deferred 457b and put the remaining $8k into Roth IRA or Roth 403b. Or you could split the numbers differently if you want. If your employer's con...
by retiredjg
Mon Jun 18, 2018 11:02 am
Forum: Investing - Theory, News & General
Topic: mega backdoor Roth -- why not stay in the roth 401(k)
Replies: 14
Views: 1091

Re: mega backdoor Roth -- why not stay in the roth 401(k)

foo.c wrote:
Mon Jun 18, 2018 10:23 am
Some plans allow in service distributions if you are over 59.5.
This is correct, but our poster has already indicated a younger age than that. But I could have worded that better. :happy
by retiredjg
Mon Jun 18, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)
Replies: 37
Views: 2963

Re: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)

With no plan at work, I'd suggest that you consider using a combination of traditional IRA (which would decrease your taxable income) and a taxable account (which would be after-tax money) for your retirement savings. Fill the traditional IRA with $5,500 and put everything else into taxable. Keep so...
by retiredjg
Mon Jun 18, 2018 9:37 am
Forum: Investing - Theory, News & General
Topic: mega backdoor Roth -- why not stay in the roth 401(k)
Replies: 14
Views: 1091

Re: mega backdoor Roth -- why not stay in the roth 401(k)

BTW...money in Roth 401k CANNOT be rolled anywhere as long as you are still working for that employer. Edit. Let me clarify. Money that is part of a person's elective deferrals (the $18.5k) must stay in the 401k (even the designated Roth 401k account) until separation or 59.5 if the plan allows with...
by retiredjg
Mon Jun 18, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: mega backdoor Roth -- why not stay in the roth 401(k)
Replies: 14
Views: 1091

Re: mega backdoor Roth -- why not stay in the roth 401(k)

It does not make sense to you because you are misunderstanding what the "mega back door" is. To use the mega back door, the money does not start out in Roth 401k. The money starts in an after tax account of a 401k or similar plan. It is confusing because Roth 401k is "after tax" but it is not the sa...
by retiredjg
Mon Jun 18, 2018 9:28 am
Forum: Personal Consumer Issues
Topic: how to make friends in new location?
Replies: 57
Views: 3976

Re: how to make friends in new location?

For adults, friends come easily and naturally through church and through kids. The lack of kids definitely puts a crimp in things. Making friends may take a little more effort on her part. If you are "dog people", I think a dog is a great way to meet people. A good percentage of the people I know he...
by retiredjg
Mon Jun 18, 2018 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications of holding Wellesley Emergency in taxable
Replies: 8
Views: 812

Re: Tax implications of holding Wellesley Emergency in taxable

These are the only two funds I have. Thanks 28 m 140k income With that kind of income, it seems likely you have a plan at work. If so, you should almost certainly be using it. You could also be putting money into IRA (probably Roth) but it is unclear if you would need to use the "back door" to do i...
by retiredjg
Mon Jun 18, 2018 9:01 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 17
Views: 751

Re: Is individual Bonds better than Bond Fund?

I don't have an opinion on bonds vs bond funds. What I know for sure is that most people do not have the knowledge, time, or energy to buy the individual bonds to make a reasonable bond portfolio. Many would just not do it. Many would mess it up. I'm not going there and I'm not going to pay someone ...
by retiredjg
Mon Jun 18, 2018 6:57 am
Forum: Investing - Help with Personal Investments
Topic: New doctor looking for your seasoned advice on initial investments
Replies: 14
Views: 1907

Re: New doctor looking for your seasoned advice on initial investments

In your case, I don't think the order is as important as the traditional vs Roth decision. You are in the lowest tax bracket you will ever see and then your income is going to be high. Using Roth now for everything you can is in your favor. This is different from the needs of a person who starts wor...
by retiredjg
Sun Jun 17, 2018 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: New to VG. Tax hit on trsfr of proprietary fund?
Replies: 9
Views: 540

Re: New to VG. Tax hit on trsfr of proprietary fund?

If the fund in question was in a taxable account...and if the fund in question was sold at a gain rather than a loss....and if you are not in one of the lower tax brackets...there could be tax because you sold it. It does not matter why you sold it. The IRS does its business on what you did. That is...
by retiredjg
Sun Jun 17, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Accounts - Employer 401k Options / Taxable
Replies: 18
Views: 1868

Re: Retirement Accounts - Employer 401k Options / Taxable

You have changed the original posts. Kind of hard to follow the edits. You've changed your name as well. Perhaps you have decided to be more anonymous and that is frequently a good idea. Sometimes people post WAY too much. Just don't expect any reliable suggestions or advice from this thread cause w...
by retiredjg
Sun Jun 17, 2018 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

Sounds like LifeStrategy Moderate Growth to me.

Good luck!
by retiredjg
Sun Jun 17, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

Be sure to get the right one. To be fair, Wellington and Wellesley Income (about 1/3 stocks and 2/3 bonds) have a place near and dear to many Boglehead's hearts. They are old funds, very well run, and low cost for actively managed funds. If I ever use an actively managed fund, it will probably be We...
by retiredjg
Sun Jun 17, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

What would be a good alternative from these type of funds, ( target date or LifeStrategy funds ) to a more ACTIVELY managed fund with the same ratio. Don't know. I don't use or recommend any actively managed funds. Well, that's not entirely true. Vanguard does have an actively managed fund that is ...
by retiredjg
Sun Jun 17, 2018 3:32 pm
Forum: Personal Consumer Issues
Topic: Which Supermarket are you?
Replies: 126
Views: 5588

Re: Which Supermarket are you?

I'm an outlier as well. Buy almost all organic and non-GMO, locally grown, grass fed, raw, the whole enchilada. I have little control over what I eat at restaurants so I don't worry about it. I just try to do better at home. I'd be Whole Foods all the way except the closest store is at least an hour...
by retiredjg
Sun Jun 17, 2018 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

Is it a recommendation to put the entire amount of 360k into ONE of these funds. ????? Seems reasonable. Yes, if the one fund meets the stock to bond ratio you want. If not, you might have to combine two of them to meet in the middle. If you decide you want a 60% stock allocation, the Vanguard Life...
by retiredjg
Sun Jun 17, 2018 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

Pertaining to these target date funds, or lifestyle funds. These are managed funds , correct? I want nothing to with everday monitoring. In the way you are asking, yes the funds are managed for you. You don't do anything. They are not "actively managed funds" because they are index funds. You will ...
by retiredjg
Sun Jun 17, 2018 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

This money is technical still on the books of the company and susceptible to debtors collection if the company declares bankruptcy (thus why people are highlighting government which has low risk of bankruptcy). This is only true of non-governmental 457b plans. Governmental 457b plans belong to the ...
by retiredjg
Sun Jun 17, 2018 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

Thanks DoTheMath. It's a little like a pension that is not a pension. :D Either way, it is a nice chunk of money being put away for our poster in a tax-deferred account. This just adds to the argument that our poster does not need to fill several other tax-deferred accounts of his/her own. Filling o...
by retiredjg
Sun Jun 17, 2018 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA question
Replies: 3
Views: 163

Re: Rollover IRA question

Don't do it. Instead, convert it TAX FREE to Roth (unless you have other IRAs that are not Roth IRA). Edited to add, this assumes the contributions were not deductible. Or roll it into a 401k or 403b if the contributions were deductible. The cost of withdrawing this money could be $2,368 federal, pl...
by retiredjg
Sun Jun 17, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Feedback on possible portfolio update
Replies: 5
Views: 259

Re: Feedback on possible portfolio update

Don't be disappointed if adding the tilt doesn't change much. It might. It might not. It might change it in the wrong direction. Yes, small cap (and value) have outperformed in the past. It was not by much. It may continue. It may not. I'm not "anti-tilt". I tilt myself. Just don't think this is goi...
by retiredjg
Sun Jun 17, 2018 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie: How should we invest taxable account & Roth conversions - 1 year to retire
Replies: 7
Views: 648

Re: Newbie: How should we invest taxable account & Roth conversions - 1 year to retire

I checked our plan documents. We do not appear to have Roth options for either the 403b or 457. I'll check with our representative but I think we will have to defer to tax-deferred accounts and separately convert to Roth. There's another choice. You can put all that money into an ordinary taxable a...
by retiredjg
Sun Jun 17, 2018 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

On the topic if target date funds. Is this an agreement on my part or simply a fund that is invested in a manner that gets more conservative as I reach retirement. Meaning, I could change course as I see fit. There are a number of "all in one" funds that are set up at different asset allocations (s...
by retiredjg
Sun Jun 17, 2018 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

sport wrote:
Sun Jun 17, 2018 1:44 pm
retiredjg wrote:
Sun Jun 17, 2018 1:41 pm
you are not yet 55.9
Make that 59.5 :happy
:oops: :oops: :oops: Thanks for seeing my typo! I'll fix it.
by retiredjg
Sun Jun 17, 2018 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

Just looking for a conservative/ moderate approach for my rollover. Tell us about your situation and we can help with this. I don't mean write us paragraphs. I mean put your information into a format that we can use to help people with their portfolios. The format is in the link at the bottom of th...
by retiredjg
Sun Jun 17, 2018 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

Haven't had a chance to talk to anyone about the target date funds. Can you set up a SEPP in a target date fun, or maybe take periodic withdrawals. And can you opt out without penalties. ? Simple questions but I'm ignorant of the rules. You can set up a SEPP (substantially equal periodic payments) ...
by retiredjg
Sun Jun 17, 2018 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: IRA concerns
Replies: 29
Views: 971

Re: IRA concerns

:shock: There is nothing conservative about this investment unless I looked it up wrong. It appears to be 100 stock, mostly or all dividend paying stock to be exact. Nothing conservative about that at all. In fact, the website describes it as The ThomasPartners Dividend Growth Strategy invests in di...
by retiredjg
Sun Jun 17, 2018 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 22
Views: 1278

Re: Take Advantage of Stable Value Fund?

I've seen expense ratios quoted for many stable value funds but it does not matter much. The payout is after expenses. So if the payout is good, the expense ratio does not matter much. About using a long term bond fund as a bond allocation. Many long term bonds do not act entirely bond like in the b...
by retiredjg
Sun Jun 17, 2018 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth conditions
Replies: 8
Views: 748

Re: Mega Backdoor Roth conditions

Ask your administrator if you can make "after-tax employee contributions". Wording similar to this should also be in the documents (often called a "summary plan description") you have describing your plan. I know this sounds like it would be Roth 401k, but it is not and make sure the administrator k...
by retiredjg
Sun Jun 17, 2018 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

The employer contributes about 12% without the employee having to contribute anything. I think this was also part of the reason, why i backed off from contributing from my side, apart from not wanting to put "my money" at risk. :| This is looking more and more to me like a pension plan. See if you ...
by retiredjg
Sun Jun 17, 2018 8:30 am
Forum: Personal Consumer Issues
Topic: Standard buyer's remorse or poorly timed enlightenment?
Replies: 40
Views: 3399

Re: Standard buyer's remorse or poorly timed enlightenment?

We're really concerned we may have made the wrong decision. It does not matter if buying the house was a mistake. That is water under the bridge so stop worrying about it. It wastes your energy. The question now is if your proposed solution is a mistake. And it sounds like it would be. The house so...
by retiredjg
Sun Jun 17, 2018 7:40 am
Forum: Investing - Help with Personal Investments
Topic: Newbie: How should we invest taxable account & Roth conversions - 1 year to retire
Replies: 7
Views: 648

Re: Newbie: How should we invest taxable account & Roth conversions - 1 year to retire

I believe the IRMAA cliff for you is currently $185k and it may be going up after this year. I would try to stay under that number. You are in a low tax bracket (12%) and it is unclear to me if you will be pushed into a higher bracket (22%) with that first RMD. However, it appears certain that when ...
by retiredjg
Sun Jun 17, 2018 6:04 am
Forum: Investing - Help with Personal Investments
Topic: Contribute to both 403(b) and 457(b)?
Replies: 57
Views: 2651

Re: Contribute to both 403(b) and 457(b)?

Good to know this - i did not have much idea about IRA and this really gives lot of useful information. Have also been hearing about backdoor Roth and looks like my old 401k could be rolled over in to one - will probably make a separate post seeking advice on it. I think you have misunderstood the ...
by retiredjg
Sat Jun 16, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: portfolio checkup - move more money to Roth?
Replies: 10
Views: 877

Re: portfolio checkup - move more money to Roth?

I don't think I'd do conversions although I might consider it at 22%. You have a lot of money going into taxable. That is near as good as Roth. And you already have a nice percentage of Roth assets. In my opinion, I don't see a problem that needs to be solved by doing Roth conversions. I think 15% e...
by retiredjg
Sat Jun 16, 2018 8:06 am
Forum: Personal Finance (Not Investing)
Topic: I think I made an Traditional IRA mistake- Can it be fixed?
Replies: 60
Views: 3516

Re: I think I made an Traditional IRA mistake- Can it be fixed?

Agreed. Where money comes from is something you should try to forget completely. Remember that the traditional IRA is a magic box in your case because you get to deduct the contribution. When you put money in it, you get to reduce your taxable income by that amount. When you take money out, you pay ...
by retiredjg
Sat Jun 16, 2018 7:59 am
Forum: Investing - Theory, News & General
Topic: Should your employment/income source determine your investment choices?
Replies: 13
Views: 910

Re: Should your employment/income source determine your investment choices?

Should your employment/income source determine your investment choices? I can think of one circumstance when the answer should be "yes". People tend to invest in what they know about. Utility people may over-invest in utilities. Tech people may over-invest in tech. Medical people may over-invest in...