Search found 32047 matches

by retiredjg
Sun Apr 22, 2018 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Accounts - 401K plus individual IRA
Replies: 6
Views: 331

Re: IRA ACCOUNTS - 401K plus individual IRA

Your 401k (or a pension if you have one) does not affect your ability to contribute to traditional IRA or to Roth IRA. Your income will determine if your contribution to tIRA is deductible or not deductible. If you are over 70.5, you cannot contribute to tIRA. Your income will determine if you are e...
by retiredjg
Sun Apr 22, 2018 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Analysis needed!
Replies: 7
Views: 536

Re: Portfolio Analysis needed!

It's kind of difficult to do a "portfolio analysis" without knowing what is in the portfolio, or what is available for the 401k plans, or how much money you add to your accounts....and so on. :D I know the "asking portfolio questions" format can be a lot of work, but all the information asked for is...
by retiredjg
Sun Apr 22, 2018 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Should I consider Roth conversions while working?
Replies: 10
Views: 481

Re: Should I consider Roth conversions while working?

I'm generally not in favor of Roth conversions unless you are at what you expect to be your lowest tax rate ever or at least a lower rate than some time in the future. On the other hand, if you are retiring in your 40's, you will need money to live on for the years before you can use IRA money (with...
by retiredjg
Sun Apr 22, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: when to rebalance?
Replies: 12
Views: 883

Re: when to rebalance?

Keep in mind that you don't have to rebalance all the way back to 40% stock. You can trim about 2%, pay less tax, and still be in your band with a touch to spare.
by retiredjg
Sun Apr 22, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Is mid/small cap necessary
Replies: 6
Views: 846

Re: Is mid/small cap necessary

Many of us prefer to hold the entire market, but if you compare 500 index to Total Market long term, the lines are almost indistinguishable. If you do not have an easy source of mid cap or small cap or a place to put it, I would not worry about it at all.
by retiredjg
Sun Apr 22, 2018 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Which bond fund to choose: Schwab (SWAGX) or Fidelity (FBIDX/FSITX)?
Replies: 7
Views: 493

Re: Which bond fund to choose: Schwab (SWAGX) or Fidelity (FBIDX/FSITX)?

Until about a year ago, when the Schwab bond index fund was first opened, there was a clear reason to go with Fidelity. Now, I'm not sure it will make a lot of difference. My guess is that the Schwab fund will always contain a little more cash than the fidelity fund, but I'm not sure that is an impo...
by retiredjg
Sun Apr 22, 2018 5:33 am
Forum: Investing - Help with Personal Investments
Topic: First time backdoor Roth Conversion. form 8606 help
Replies: 13
Views: 762

Re: First time backdoor Roth Conversion. form 8606 help

I think that 5914.34 is the current balance, not end of last year.
by retiredjg
Sat Apr 21, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: 401K fund selection through Wells Fargo
Replies: 4
Views: 313

Re: 401K fund selection through Wells Fargo

Your best choices: Wells Fargo Core Bond I MBFIX Bond MBFIX 0.42 Fidelity 500 Index Institutional FXSIX Domestic Stock FXSIX 0.03 Fidelity Extended Market Index Premium FSEVX Domestic Stock FSEVX 0.07 Fidelity International Index Instl FSPNX International Stock FSPNX 0.05 The international fund is m...
by retiredjg
Sat Apr 21, 2018 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Best Way to Decline an International Job Assignment
Replies: 23
Views: 1508

Re: Best Way to Decline an International Job Assignment

Family obligations or health reasons are two good ideas to explore if that pertains to you. However, making up something or even stretching the truth could subject many employees to immediate termination (with no chance to "improve" performance). I think "say no and tell them why" is your only hope,...
by retiredjg
Sat Apr 21, 2018 9:23 am
Forum: Investing - Theory, News & General
Topic: Mega Backdoor & Pro rata rule
Replies: 10
Views: 646

Re: Mega Backdoor & Pro rata rule

I think you got to be careful about the tIRA balance “at end of year.” You have to complete the rollover by end of year to avoid pro-rata rule. Instructions for Line 6 for Form 8606 is balance of tIRA at end of year plus outstanding rollovers. An outstanding rollover is generally the amount of any ...
by retiredjg
Sat Apr 21, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Bonds beat stocks ?
Replies: 10
Views: 828

Re: Bonds beat stocks ?

I read in a 2012 post that bonds have beat us stocks over the last decade. Can someone explain how that is possible. When Bonds earn 9% in the best years for bonds and the S&P 500 earns over 20% in a good year. Keep in mind there are years when the S&P doesn't grow at all. In fact it might actually...
by retiredjg
Sat Apr 21, 2018 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 2905

Re: Tax day come and gone.....

Thanks David. When I said "it does not matter" I meant tax-efficiency, not risk or return. But I have to say I don't understand many of the conclusions that I think I hear from the "tax-adjusters". :happy
by retiredjg
Sat Apr 21, 2018 7:27 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega backdoor Roth
Replies: 15
Views: 1318

Re: Questions about mega backdoor Roth

whoiscamus wrote:
Sat Apr 21, 2018 7:08 am
Thanks a lot for the explanation. Happy to report that the rollover did work out as expected. After-tax and pre-tax in 401k seem to be in sub-accounts and are isolated from each other.
Glad to hear it worked out. :happy
by retiredjg
Sat Apr 21, 2018 7:26 am
Forum: Investing - Help with Personal Investments
Topic: First time backdoor Roth Conversion. form 8606 help
Replies: 13
Views: 762

Re: First time backdoor Roth Conversion. form 8606 help

Here's how it looks to me. Line 1 - 5500 seems correct Line 2 - 21770.68 is correct only if that is what was on line 14 of your last Form 8606 (which was probably 2016) Line 6 should not be 0 because you had money in the IRA at the end of 2017 - probably something near but not exactly 5500 Line 8 is...
by retiredjg
Sat Apr 21, 2018 6:49 am
Forum: Investing - Help with Personal Investments
Topic: High Income no 401k option
Replies: 2
Views: 559

Re: High Income no 401k option

1. What should i do about my 2018 Roth because I did not realize I would be over the limit but now with the bonus (paid out in 2018) I think I will be. If you find you are over, or even if you just want to take care of it now, you have two choices. You can recharacterize your contribution to tIRA. ...
by retiredjg
Fri Apr 20, 2018 5:13 pm
Forum: Investing - Theory, News & General
Topic: Mega Backdoor & Pro rata rule
Replies: 10
Views: 646

Re: Mega Backdoor & Pro rata rule

Pro-rating is done using the balance in tIRA at the end of a year during which you do a Roth conversion. What you had in tIRA at any other point in the year is not relevant. If you roll the earnings part from the tIRA back into the 401k before the end of the year, it is as if it were never there. If...
by retiredjg
Fri Apr 20, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: First time backdoor Roth Conversion. form 8606 help
Replies: 13
Views: 762

Re: First time backdoor Roth Converion. form 8606 help

line 2 is my basis as of 2016. that's What's in IRA now Which IRA? When did you make the 2017 contribution? I meant to say that's what's reported to IRS. My TIRA only has 2017 contribution now. I made monthly contribution in 2017. over 12 months period If you made monthly contributions in 2017 over...
by retiredjg
Fri Apr 20, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: First time backdoor Roth Conversion. form 8606 help
Replies: 13
Views: 762

Re: First time backdoor Roth Converion. form 8606 help

renn20 wrote:
Fri Apr 20, 2018 4:34 pm
line 2 is my basis as of 2016. that's What's in IRA now
Which IRA?

When did you make the 2017 contribution?
by retiredjg
Fri Apr 20, 2018 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: First time backdoor Roth Conversion. form 8606 help
Replies: 13
Views: 762

Re: First time backdoor Roth Converion. form 8606 help

It appears that you have line 10 incorrect. But again, tell us what you did and when you did it. Also, what is in the IRA right now?
by retiredjg
Fri Apr 20, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: First time backdoor Roth Conversion. form 8606 help
Replies: 13
Views: 762

Re: First time backdoor Roth Converion. form 8606 help

It might reflect what you did, but it does not make sense to me.

Where did the 21,770.68 come from on line 2?

Tell us what date you did your contribution and your conversion. Why did you convert only 21,770.68 instead of the whole thing?
by retiredjg
Fri Apr 20, 2018 3:49 pm
Forum: Personal Consumer Issues
Topic: Do Apple products need Norton anti Virus?
Replies: 12
Views: 927

Re: Do Apple products need Norton anti Virus?

I used a Mac for years with no virus protection at all. No problems. A couple of years ago, I decided that was a bit naive and downloaded a free Avast protection program. Unlike Norton and McAfee, this one has not caused any problems or lockups that I'm aware of. I was never happy with Norton or McA...
by retiredjg
Fri Apr 20, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 2905

Re: Tax day come and gone.....

ok, so to confirm, i need to try and put as much of my AA in bonds inside TSP and 401k, correct? Yes, in my opinion. That is also the original Boglehead mantra. Not everyone agrees. The people who "tax adjust" their portfolios (not many people do that) say it does not matter, or at least that is my...
by retiredjg
Fri Apr 20, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Is Rollover + $6500 contrib in 2018 ok?
Replies: 9
Views: 711

Re: Is Rollover + $6500 contrib in 2018 ok?

Why are you getting any checks? Can't you roll them directly into Vanguard? It seems to be a common practice for a work plan (like a 401k) to mail checks made out to the owner's account at the next custodian. The owner then forwards the check on to the next custodian. I think they do this because t...
by retiredjg
Fri Apr 20, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega backdoor Roth
Replies: 15
Views: 1318

Re: Questions about mega backdoor Roth

Earl Lemongrab wrote:
Thu Apr 19, 2018 9:40 am
No, you have to apply for a hardship. The plan administration makes the determination.
Thank you for that information. I'm very surprised it works that way.
by retiredjg
Fri Apr 20, 2018 7:23 am
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 2905

Re: Tax day come and gone.....

Ready20, your question seems to be asking if you should sell the stocks in taxable and replace them with a stable value fund. No, you want to keep your taxable account all stocks or mostly stocks if you'd like a bit of bonds in there. The suggestion was to put bonds in the TSP and the 401k. Fill any...
by retiredjg
Fri Apr 20, 2018 6:55 am
Forum: Investing - Help with Personal Investments
Topic: Updated with questions about transferring work simple IRA to frozen simple IRA
Replies: 30
Views: 1276

Re: Updated with questions about transferring work simple IRA to frozen simple IRA

And if you are faced with having to get the guaranteed signature, and you cannot get that at Vanguard, consider setting up your frozen or transfer SIMPLE IRA at Fidelity. Fidelity seems to be more flexible about providing that signature guarantee...possibly because they actually have offices you can...
by retiredjg
Fri Apr 20, 2018 6:51 am
Forum: Investing - Help with Personal Investments
Topic: Updated with questions about transferring work simple IRA to frozen simple IRA
Replies: 30
Views: 1276

Re: Updated with questions about transferring work simple IRA to frozen simple IRA

krwo36's link to the transfer form contains some interesting information. In it, I found this "For use when Capital Bank and Trust CompanySM (CB&T) is the designated financial institution of your company’s SIMPLE IRA plan." Later on, there is a paragraph that says (I think) if you have a different d...
by retiredjg
Thu Apr 19, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Financial planners [looking for one]
Replies: 26
Views: 1855

Re: Financial planners [looking for one]

I agree that the best financial advice can sound like reading from a script. That is because good advice is often good for most people. You can get personalized advice here by presenting your information in the format we use to help people with their portfolios. See the link at the bottom of this me...
by retiredjg
Thu Apr 19, 2018 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Approximating VTSAX with limited 401k options
Replies: 4
Views: 408

Re: Approximating VTSAX with limited 401k options

I can think of several ways to make this work. None is perfect. All are good enough. 1) Use the Growth Index as a substitute for 500 index. Just hold your nose and don't worry about it. Large cap growth may not be your first choice for your large cap US allocation , but it is not a bad place to be. ...
by retiredjg
Thu Apr 19, 2018 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Updated with questions about transferring work simple IRA to frozen simple IRA
Replies: 30
Views: 1276

Re: My work in starting a simple IRA --questions

This is from an IRS publication 98-4 on SIMPLE IRAs: https://www.irs.gov/pub/irs-drop/not98-4.pdf Q. J􏰀4: How does a DFI transfer a participant's balance without cost or penalty? A. J􏰀4: In order to satisfy § 408(p)(7), a participant's balance must be transferred in a trustee-to-trustee transfer di...
by retiredjg
Thu Apr 19, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Updated with questions about transferring work simple IRA to frozen simple IRA
Replies: 30
Views: 1276

Re: Updated with questions about transferring work simple IRA to frozen simple IRA

Before getting too far into this, you need to learn if your SIMPLE is Form 5304 or Form 5305. The rules are somewhat different for the two kinds. If you have any paperwork, just look at the top for the form number. If not, ask your boss and then verify it when you do get your paperwork. You can also...
by retiredjg
Thu Apr 19, 2018 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 3997

Re: Retirement Plan Review please

Re tax bracket, you are right I am not in that tax bracket but it is what I pay. 18,500 goes into the 401k, then there is the standard deduction and all of that. What I actually pay has not been that much. That is the effective tax rate I guess. It would not be unusual to be in the 25% tax bracket ...
by retiredjg
Thu Apr 19, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Help with rebalancing retirement accounts
Replies: 5
Views: 518

Re: Help with rebalancing retirement accounts

I have been holding 500 index for 1-2 years thus it has some capital gains, so my concern is if I convert to total stock..it seems like I’ll be entitle to pay taxes? Yes, you would be required to pay taxes. I'm not sure I would go so far as to pay taxes to fix this, but you could start purchasing T...
by retiredjg
Thu Apr 19, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 2905

Re: Tax day come and gone.....

There is no "best" for this question. Either is fine. But since you already have both total stock and total international in taxable, I'd put something else in Roth IRA to avoid wash sales if you sell in taxable at a loss. I'd set it up that way from the start so I don't even have to wonder about wa...
by retiredjg
Thu Apr 19, 2018 9:28 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 3997

Re: Retirement Plan Review please

kjsammy, I'd like to make some comments. You seem to be one of those smart people with a bit of a blind spot about money. :D By that I mean it appears to me you have way more money than you will probably need, but you have not yet realized that. Or maybe you didn't realize it before you started the ...
by retiredjg
Thu Apr 19, 2018 8:37 am
Forum: Investing - Help with Personal Investments
Topic: Help with rebalancing retirement accounts
Replies: 5
Views: 518

Re: Help with rebalancing retirement accounts

What is the taxable account going to be used for? I would hold total stock in taxable and 500 index + mid/small cap (extended market) in the other accounts. This set up avoids worrying about a wash sale if you sell in taxable at a loss. It is not hurting anything but holding both a target fund and t...
by retiredjg
Thu Apr 19, 2018 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Tax-efficient fund placement?
Replies: 9
Views: 962

Re: Tax-efficient fund placement?

Of the accounts you have available, I'd put the rest of the bonds in taxable and reserve most or all of the Roth IRA for stock funds. The "bonds in taxable" could be CDs if you like Cds and can find some at good rates.
by retiredjg
Thu Apr 19, 2018 6:52 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega backdoor Roth
Replies: 15
Views: 1318

Re: Questions about mega backdoor Roth

IRS regulations prohibit non-hardship in-service withdrawals /rollovers prior to age 59 1/2. Please educate me on this. I did find some wording that says withdrawals are not allowed, but I also found several websites (including an IRS website) that say withdrawals trigger a 10% penalty in addition ...
by retiredjg
Thu Apr 19, 2018 6:44 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega backdoor Roth
Replies: 15
Views: 1318

Re: Questions about mega backdoor Roth

I'm not sure it is against the law, but it is strongly discouraged by a 10% penalty in addition to whatever tax you would owe. There are some exceptions that would eliminate the penalty but not eliminate the tax. There are no exceptions for eligible rollovers, which is why I specified that. Hardshi...
by retiredjg
Wed Apr 18, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 2905

Re: Tax day come and gone.....

I would not hold bonds in roth IRA if I had a reasonable choice of a bond fund or stable value fund in His 401k. Will your entire bond allocation fit into the TSP/401k?
by retiredjg
Wed Apr 18, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: Bond allocation for taxable accounts
Replies: 5
Views: 575

Re: Bond allocation for taxable accounts

If you want 40% of your taxable account to be bonds, in your tax bracket you should just use the ordinary taxable bonds like Total Bond Market. Or you could use CDs if you prefer. Tax-exempt bonds will not make sense in your tax bracket. The dividends from your Total Bond Market mutual fund or ETF w...
by retiredjg
Wed Apr 18, 2018 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA Question
Replies: 6
Views: 346

Re: Backdoor Roth IRA Question

Thanks for the reply. My 401k is with Mass Mutual and the investment options are limited so I wouldn't want to move my tIRA there. Then you should just put your money into a taxable account instead of using the back door to IRA. This does not affect your future spouse's ability to use the back door...
by retiredjg
Wed Apr 18, 2018 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: Does low-cost active management makes sense for international?
Replies: 8
Views: 581

Re: Does low-cost active management makes sense for international?

I think it depends on what else you have available. If you have no low cost fund available in the accounts you can add money to, a low cost active fund in an account you do add money to can make sense. Or open an IRA and put a low cost index fund in there.
by retiredjg
Wed Apr 18, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about mega backdoor Roth
Replies: 15
Views: 1318

Re: Questions about mega backdoor Roth

I'm not sure it is against the law, but it is strongly discouraged by a 10% penalty in addition to whatever tax you would owe. There are some exceptions that would eliminate the penalty but not eliminate the tax. People (including me) frequently say "you can't take the money...." but the truth is yo...
by retiredjg
Wed Apr 18, 2018 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Broke up with my girlfriend for financial reasons: crazy?
Replies: 53
Views: 3075

Re: Broke up with my girlfriend for financial reasons: crazy?

My real question here would be: is it worth to compromise my savings rate, which might ultimately affect my financial goals, for a relationship, as opposed to keep looking for a partner who is more aligned to my financial goals? Valid question. I'd say probably both. Someone with your income living...
by retiredjg
Wed Apr 18, 2018 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega backdoor Roth
Replies: 15
Views: 1318

Re: Questions about mega backdoor Roth

I'm very new to personal investment and I have been reading the forum about mega backdoor Roth conversion. Fortunately, my employer offers it. I'm allowed to contribute to after-tax and convert it to a Roth IRA. I'm planning to roll the whole after-tax amount to a ROTH IRA, and pay taxes on the min...
by retiredjg
Tue Apr 17, 2018 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: First Time Homebuyer buying a FSBO home, help!
Replies: 11
Views: 909

Re: First Time Homebuyer buying a FSBO home, help!

I would never buy from a FSBO. By definition, they are trying to save on every possible fee. They will nickel and dime you. IF you still want to proceed beware. This seems like an unfair and broad generalization. I did a FSBO (as a seller) and your description is nothing like my experience. In fact...
by retiredjg
Tue Apr 17, 2018 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Diversifying fixed income portfolio
Replies: 2
Views: 278

Re: Diversifying fixed income portfolio

I would not have all my fixed income assets in 2 muni bond funds unless forced to do so. In your case, we don't know enough to make specific suggestions. Some information about your current portfolio would be helpful. A general suggestion is to exchange all (or almost all) of your IRA or 401k space ...