Search found 33096 matches

by retiredjg
Wed Aug 15, 2018 9:27 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio experiment
Replies: 12
Views: 1352

Re: Schwab Intelligent Portfolio experiment

One way to get a naive robo-customer into difficulties beyond what their tax software can handle would be to have multiple taxable accounts with TLH service enabled, or one robo with TLH and a taxable or IRA account that involves some of the same funds that the robo uses. Yes. I've seen this in a c...
by retiredjg
Wed Aug 15, 2018 9:25 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio experiment
Replies: 12
Views: 1352

Re: Schwab Intelligent Portfolio experiment

Fclevz wrote:
Tue Aug 14, 2018 5:53 pm
... you don’t need to list each individual transaction, only the totals on Schedule D.
Thanks. I didn't know that.
by retiredjg
Wed Aug 15, 2018 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Max'ing contribution to retirement accts
Replies: 7
Views: 885

Re: Max'ing contribution to retirement accts

What I'm asking is can I still make after-tax contributions to another tax-advantage account (TIRA for instance) beyond the contributions I'll be making thru my employer plan listed above? Yes. Contributions to a 401k do not affect the amount of your contributions to IRA. You are above the MAGI for...
by retiredjg
Tue Aug 14, 2018 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Investments that produce LTCG income.
Replies: 2
Views: 179

Re: Investments that produce LTCG income.

Maybe you are asking about "capital gains distributions"? These have nothing to do with selling shares that you own.
by retiredjg
Tue Aug 14, 2018 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Warns of Worsening Odds for the Economy and Markets [Portfolio help]
Replies: 10
Views: 954

Re: Vanguard Warns of Worsening Odds for the Economy and Markets [Portfolio help]

1. Do I hold steady as of today with an 85% distribution of stocks (50-50 mix of US and international) and 15% bonds? You should always be invested in a way that you can tolerate a stock market downturn/extended bear market that starts today. You should be invested that way even during the good tim...
by retiredjg
Tue Aug 14, 2018 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Getting started - question on tax efficiency and AA
Replies: 5
Views: 297

Re: Getting started - question on tax efficiency and AA

You will get more and better answers if you post the entirety of your financial situation. See the link at the bottom of this message for how to do that.
by retiredjg
Tue Aug 14, 2018 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Max'ing contribution to retirement accts
Replies: 7
Views: 885

Re: Max'ing contribution to retirement accts

Wanted to get advice on how to maximize my contributions to retirement tax-advantaged accts this year. I'm employed, spouse unemployed, we file jointly. Our AGI is usually above $700k due to stock vests from my employer. I leverage deferred compensation and 401k from employer to get into tax advant...
by retiredjg
Tue Aug 14, 2018 4:03 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategy between tax-advantaged account types
Replies: 4
Views: 297

Re: Asset location strategy between tax-advantaged account types

So I believe this can be generalized as: Place asset classes with higher expected growth (e.g. stocks) in Roth IRA / 401k, and asset classes with lower expected growth (e.g. bonds) in Traditional IRA / 401k. Some people do think this. Some do not. Others try to put both stocks and bonds in each acc...
by retiredjg
Tue Aug 14, 2018 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: Moving rollover IRA to 401k- timing and lost returns.
Replies: 6
Views: 307

Re: Moving rollover IRA to 401k- timing and lost returns.

ACA wrote:
Tue Aug 14, 2018 10:06 am
I need to move my rollover IRA to my 401k due to Mega backdoor earlier this year.
Not unless there was something unusual about what you did.

Why do you think this?
by retiredjg
Tue Aug 14, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab IRA - RMD's taken to Taxable Side
Replies: 6
Views: 354

Re: Schwab IRA - Bond Funds

PickitPaul wrote:
Tue Aug 14, 2018 11:52 am
So if there is a gain or loss in principal in the bond fund when sold in IRA - and I buy same fund over in the taxable side, there is no IRS problem with that?
Correct. Only selling something in a taxable account can cause a wash sale.
by retiredjg
Tue Aug 14, 2018 6:01 am
Forum: Investing - Help with Personal Investments
Topic: Best placement for Small Cap Value? Taxable, Roth or 403b7?
Replies: 21
Views: 1297

Re: Best placement for Small Cap Value? Taxable, Roth or 403b7?

The SCV can go in any one of those accounts. Where does it seem to fit best in your opinion? Something to keep in mind....almost any kind of fund is suitable for Roth IRA or a 403b. The only exception I can think of is muni bonds - few people would put a tax-exempt bond into a tax-advantaged account...
by retiredjg
Mon Aug 13, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth or Taxable Accounts
Replies: 24
Views: 1428

Re: Backdoor Roth or Taxable Accounts

Just curious. Do you have some examples on who people messed up backdoor Roth conversion? Wanted to know for my own education. Sorry, I don't. But if you use the google box above and search for things like messed up back door or how to fix back door mistake or CP2000 letter back door. ...you will l...
by retiredjg
Mon Aug 13, 2018 4:35 pm
Forum: Investing - Theory, News & General
Topic: Should I contribute to 401k this year if retirement income will be higher?
Replies: 4
Views: 540

Re: Should I contribute to 401k this year if retirement income will be higher?

Since you want to retire in a relatively high tax bracket (24% under current laws, 28% if taxes revert as scheduled) I don't see that tax deferral this year will be very helpful to you in the future. I'd use some Roth, maybe all Roth this year if you can. Be sure to get your match though. Once your ...
by retiredjg
Mon Aug 13, 2018 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: REIT placement... Why not a Roth? Why tax-deferred?
Replies: 25
Views: 1523

Re: REIT placement... Why not a Roth? Why tax-deferred?

Don't be stingy. He deserves at least 2 gold stars. :P
by retiredjg
Mon Aug 13, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: IRA rollover mixed pre/post tax question
Replies: 5
Views: 213

Re: IRA rollover mixed pre/post tax question

I don't know for sure, but I'd be surprised if the 401k would accept a check from you unless it is made out to them from the IRA company. In other words, I don't think a 60 day rollover works going that direction.

Spirit Rider should know for sure.....and the answer is.....?
by retiredjg
Mon Aug 13, 2018 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: IRA rollover mixed pre/post tax question
Replies: 5
Views: 213

Re: IRA rollover mixed pre/post tax question

She must also have the Form 8606 for the year of non-deductible contribution - apparently 2017? If she did not do that form earlier this year, she can do it now and send it (alone) to the IRS. Apparently they accept these forms late, but do not send a notification that they got it.
by retiredjg
Mon Aug 13, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Making money last through retirement
Replies: 17
Views: 3047

Re: Making money last through retirement

billfromct wrote:
Mon Aug 13, 2018 1:59 pm
I'm no tax expert, so maybe someone else will correct me if I'm wrong.

bill
No, you are absolutely right. I should have said "taxable income" instead of MAGI and I'll change my post. Thanks.
by retiredjg
Mon Aug 13, 2018 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Making money last through retirement
Replies: 17
Views: 3047

Re: Making money last through retirement

Concerning my IRA with Vanguard. It sounds like there would be no tax liability at this point on the gain if I just switch funds with in Vanguard. How about on the other account? I am convinced now I should go for a much more conservative mix, but will I have to pay tax on that transfer if I stay w...
by retiredjg
Mon Aug 13, 2018 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Best placement for Small Cap Value? Taxable, Roth or 403b7?
Replies: 21
Views: 1297

Re: Best placement for Small Cap Value? Taxable, Roth or 403b7?

The numbers were somewhat different in 2016. Maybe you should look. And while I don't know that Triceratop did any charts for years before that, the discussion was always that the broader funds were usually more tax-efficient than the narrower funds. And I remember a time awhile back that SCV was no...
by retiredjg
Mon Aug 13, 2018 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Best placement for Small Cap Value? Taxable, Roth or 403b7?
Replies: 21
Views: 1297

Re: Best placement for Small Cap Value? Taxable, Roth or 403b7?

That is not what I see on the chart in the link above. What are you looking at?
by retiredjg
Mon Aug 13, 2018 10:33 am
Forum: Investing - Help with Personal Investments
Topic: much better ytd return than the vg s&p 500
Replies: 7
Views: 818

Re: much better ytd return than the vg s&p 500

None of those are the S&P 500 Index so it is expected they will have a different return from the 500 Index. Every asset class has its day. And every asset class has its time in the pits. If you buy the one(s) that is doing well, that means you have already missed the "run up". You are buying at a hi...
by retiredjg
Mon Aug 13, 2018 9:43 am
Forum: Investing - Help with Personal Investments
Topic: wich bond fund for roth and taxable if no ira's
Replies: 5
Views: 417

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

A target or LifeStrategy fund in the Roth IRA would eliminate any problem. If you don't want 40% of your stocks to be in international, pick a target or LS fund with more bonds that you want and dilute it with some 500 Index. That would also reduce the international percentage. If you plan to run pa...
by retiredjg
Mon Aug 13, 2018 9:13 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio experiment
Replies: 12
Views: 1352

Re: Schwab Intelligent Portfolio experiment

Thanks for the report. I've been wondering how people will feel come tax time when they have to report all these buying and selling activities. I can't speak for Vanguard, but in Fidelity managed accounts the selling/buying is generally for tax loss harvesting. They sell a losing fund and buy a sim...
by retiredjg
Mon Aug 13, 2018 9:09 am
Forum: Investing - Help with Personal Investments
Topic: Best placement for Small Cap Value? Taxable, Roth or 403b7?
Replies: 21
Views: 1297

Re: Best placement for Small Cap Value? Taxable, Roth or 403b7?

Vpotus, your title just asks about SCV, not specifically Vanguard's SCV. Perhaps you were only thinking Vanguard's fund but did not think to say that. Some of the answers you got (mine included) may be in response to the title - just SCV - not specifically about Vanguard's SCV fund. It seems to me t...
by retiredjg
Mon Aug 13, 2018 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Making money last through retirement
Replies: 17
Views: 3047

Re: Making money last through retirement

1. Should I keep the Vanguard accounts as they are? I've considered a more conservative mixture of stocks and bonds, but also am still open to the annuity idea. Would there be a capital gains tax if I switched to another Vanguard fund? At this point there have been gains within both Vanguard accoun...
by retiredjg
Mon Aug 13, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Best placement for Small Cap Value? Taxable, Roth or 403b7?
Replies: 21
Views: 1297

Re: Best placement for Small Cap Value? Taxable, Roth or 403b7?

This isn't really a yes or no/better or best question. It depends on many other things. It depends on what space you have available and done properly it assumes you fill your 403b and a Roth IRA or two before putting retirement money into taxable. It also depends on the cost of the SCV fund and the ...
by retiredjg
Sun Aug 12, 2018 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Mega Backdoor Roth
Replies: 2
Views: 412

Re: Question about Mega Backdoor Roth

The after tax account rolls directly to Roth IRA if your 401k plan allows that. Or the after-tax contributions roll to Roth and the earnings roll to tIRA. You can do it either way. The existing IRA does not get in the way because your after-tax rollover should not go through your tIRA. If your curre...
by retiredjg
Sun Aug 12, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio experiment
Replies: 12
Views: 1352

Re: Schwab Intelligent Portfolio experiment

Thanks for the report.

I've been wondering how people will feel come tax time when they have to report all these buying and selling activities.
by retiredjg
Sun Aug 12, 2018 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: REIT placement... Why not a Roth? Why tax-deferred?
Replies: 25
Views: 1523

Re: REIT placement... Why not a Roth? Why tax-deferred?

But I don't think it should control the decision about where to direct savings in the first place. That, to me, comes down primarily to a comparison of working vs. retirement tax rates. (And also, possibly, the due consideration of tax diversification to address the significant uncertainty in futur...
by retiredjg
Sun Aug 12, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: New member: help with asset allocation and fund selections
Replies: 9
Views: 613

Re: New member: help with asset allocation and fund selections

Welcome to the forum! First a big "thank you" for posting your information in the format we use to help people with their portfolio questions. Following the format makes it much easier to help you. It is possible many people with jump in with suggestions. 1. I need help getting the allocation set up...
by retiredjg
Sun Aug 12, 2018 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio checkup and the best place for my next dollar [young resident doctor]
Replies: 10
Views: 545

Re: Portfolio checkup and the best place for my next dollar [young resident doctor]

1. How are we doing overall? Fine. 2. Even after funding a comfortable lifestyle in our HCOL city with lots of travel and vacation, we likely have at least $6000 post-tax dollars annually to save. Where should these next saved dollars go? It appears you are not filling your 457b - the current limit...
by retiredjg
Sun Aug 12, 2018 10:51 am
Forum: Investing - Help with Personal Investments
Topic: REIT placement... Why not a Roth? Why tax-deferred?
Replies: 25
Views: 1523

Re: REIT placement... Why not a Roth? Why tax-deferred?

Thank you. Here are my thoughts: If I diversify with a REIT in Roth, this means I pay taxes upfront. Money grows untaxed. I keep all the gains when withdrawing. That sounds great. In contrast, REIT placed in a 403b7 (I teach) = Money grows tax-free but I get taxed on the gains when I withdraw. Is i...
by retiredjg
Sun Aug 12, 2018 10:43 am
Forum: Investing - Help with Personal Investments
Topic: 3 funds now, or start off with 2?
Replies: 17
Views: 1077

Re: 3 funds now, or start off with 2?

Do whatever you like because it will not matter one bit in the long run. I know that sounds offensive to a young person who is trying to get it right, but that is simply the dynamic of beginning portfolios. In fact, you could be invested in all bonds or money market the first year or so and it won't...
by retiredjg
Sat Aug 11, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: VPAS and backdoor Roth IRA
Replies: 3
Views: 313

Re: VPAS and backdoor Roth IRA

Vanguard's PAS does not do this.
by retiredjg
Sat Aug 11, 2018 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Untangling a Trad IRA
Replies: 9
Views: 739

Re: Untangling a Trad IRA

Earl Lemongrab wrote:
Sat Aug 11, 2018 3:59 pm
NotWhoYouThink wrote:
Fri Aug 10, 2018 12:25 pm
You have to do the rollover first, because otherwise any conversion would have to be pro-rated.
That's not accurate. Pro-rata is based on the value of IRAs on 12/31.
I think both of those are correct in their own way. The first is what the rules say. The second is how the rules are applied.
by retiredjg
Sat Aug 11, 2018 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: which Fidelity funds to use for 3 fund portfolio?
Replies: 4
Views: 565

Re: which Fidelity funds to use for 3 fund portfolio?

This link contains the answer to your question. There is no reason to move your money.

https://www.bogleheads.org/wiki/Three-fund_portfolio

If you have a 401k or other plan at work, you may have to craft together a couple of things to achieve something similar to the funds in the 3 funder.
by retiredjg
Sat Aug 11, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion advice for senior
Replies: 7
Views: 597

Re: Roth conversion advice for senior

It makes sense to me....if the parent is truly desiring to take the tax hit.

Parent may move into the 35% bracket as a result of the Roth conversions. That would make it a wash - parent would not pay more than heir would pay.

As for the other heir, who knows? I
by retiredjg
Sat Aug 11, 2018 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: Newly retired - need to make a big change
Replies: 34
Views: 5202

Re: Newly retired - need to make a big change

dwickenh wrote:
Sat Aug 11, 2018 10:57 am
I think you meant to say 30% stocks and 70% bonds for Target Retirement Income.


Dan
Thank you Dan. You're right. :happy
by retiredjg
Sat Aug 11, 2018 9:23 am
Forum: Investing - Theory, News & General
Topic: Mutual Funds vs. ETF's
Replies: 22
Views: 1138

Re: Mutual Funds vs. ETF's

The other day, I read in a financial column that ETF's are preferred if you intend to keep those assets for longer than 4 months as opposed to having a mutual fund. This idea is nuts in my opinion. What was the reasoning behind that? I always thought that ETF's were mainly short term and used by ma...
by retiredjg
Sat Aug 11, 2018 9:09 am
Forum: Investing - Help with Personal Investments
Topic: Newly retired - need to make a big change
Replies: 34
Views: 5202

Re: Newly retired - need to make a big change

Highfeehater, you are one lucky man (couple). I've never heard of an advisor who will give you your money back. Jump on that offer to pay only $400 to get out of this mess and consider it the cost of your financial education. It's a very small price to pay to get into a better portfolio and with red...
by retiredjg
Sat Aug 11, 2018 7:44 am
Forum: Investing - Help with Personal Investments
Topic: Please help me simplify my Portfolio
Replies: 9
Views: 1187

Re: Please help me simplify my Portfolio

I think there is still some confusion about IRAs and 401ks. A 401k is a plan you have at work. When you leave that job, you can roll it into your next 401k at your next job or you can roll it into an IRA at a place like Vanguard or Betterment or Fidelity. There are two kinds of IRA - traditional IRA...
by retiredjg
Fri Aug 10, 2018 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth or Taxable Accounts
Replies: 24
Views: 1428

Re: Backdoor Roth or Taxable Accounts

A lot of it is just not finding out what directions to follow. Everyone says "do the back door" and people follow that advice without knowing what is involved. And so many of them messed up and had to fix it. So many messes to fix. So I no longer make the suggestion to do the back door. I do still t...
by retiredjg
Fri Aug 10, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth or Taxable Accounts
Replies: 24
Views: 1428

Re: Backdoor Roth or Taxable Accounts

there are step by step walkthroughs online, so no. the backdoor rIRA remains superior to taxable. What you are saying is correct, but it is not entirely accurate. Every year we have dozens of people who need help because they messed up their back door contributions to Roth IRA. For that reason, I n...
by retiredjg
Fri Aug 10, 2018 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth or Taxable Accounts
Replies: 24
Views: 1428

Re: Backdoor Roth or Taxable Accounts

I'd like to say that using the back door to get money into Roth is not a forgone conclusion. Yes, it is somewhat better financially. But many people mess it up and find that unwinding their mistakes is time consuming and frustrating. It may not be worth that for some people. If you decide to use the...
by retiredjg
Fri Aug 10, 2018 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Tax-deductible 403b vs. taxable Vanguard ETF
Replies: 26
Views: 1236

Re: Tax-deductible 403b vs. taxable Vanguard ETF

One of our posters here, Steve Schullo, has done a great deal of work on this expensive 403b issue. Here is a link to information about him. He has several books and there is also a free download book available. This could be helpful knowledge if you decide to undertake a union action. https://www.g...
by retiredjg
Fri Aug 10, 2018 8:40 am
Forum: Investing - Help with Personal Investments
Topic: Tax-deductible 403b vs. taxable Vanguard ETF
Replies: 26
Views: 1236

Re: Tax-deductible 403b vs. taxable Vanguard ETF

There is still one thing to check. Your school MIGHT be eligible to use a state 457b plan. If not eligible, they MIGHT be eligible to be eligible if someone does the legwork. State 457b plans are frequently better than 403b plans. You need to check this out. I think a 2.5% or thereabouts cost is unr...
by retiredjg
Thu Aug 09, 2018 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have a friend/family who you think is making a financial mistake?
Replies: 7
Views: 775

Re: Do you have a friend/family who you think is making a financial mistake?

I have a friend who thinks Raymond James can make him A LOT OF MONEY. :?
by retiredjg
Thu Aug 09, 2018 6:41 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401k and Roth 401k?
Replies: 14
Views: 593

Re: Traditional 401k and Roth 401k?

What if immediately after after-tax contributions, I convert it to a Roth IRA. Then, there would be minimal to no earnings. This seems to take care of the issue? While that might be optimal, that is likely 26 actions each year. Not only is that a lot of trouble on your part, your plan may limit the...
by retiredjg
Thu Aug 09, 2018 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401k and Roth 401k?
Replies: 14
Views: 593

Re: Traditional 401k and Roth 401k?

A good thing to keep in mind when it comes to taxes.... Almost all money is taxed at some point. There are only a few exceptions to this. For example, the earnings that occur inside a Roth IRA are not taxed if you are at least 59.5 and your Roth IRA is over 5 years old when you take that money out. ...