Search found 33085 matches

by retiredjg
Mon Aug 13, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth or Taxable Accounts
Replies: 24
Views: 1357

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: 2
Views: 253

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: 1466

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: 185

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: 185

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: 11
Views: 2013

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: 11
Views: 2013

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: 18
Views: 1031

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: 18
Views: 1031

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: 770

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: 371

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: 5
Views: 831

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: 18
Views: 1031

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: 11
Views: 2013

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: 18
Views: 1031

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: 405

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: 5
Views: 831

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: 1466

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: 8
Views: 509

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: 527

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: 1466

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: 1049

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: 305

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: 726

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: 552

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: 584

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: 33
Views: 4664

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: 1119

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: 33
Views: 4664

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: 1172

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: 1357

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: 1357

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: 1357

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: 1225

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: 1225

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: 764

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: 575

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: 575

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. ...
by retiredjg
Thu Aug 09, 2018 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401k and Roth 401k?
Replies: 14
Views: 575

Re: Traditional 401k and Roth 401k?

I called my 401k company again, and the guy confirmed basically what you said. This was not what the previous lady said. My plan doesn't have a Roth IRA option, only a roth 401k option. I did some research and it looks like if I do the after-tax contribution, a conversion to roth-401K will be taxed...
by retiredjg
Thu Aug 09, 2018 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Backdoor Investment question
Replies: 3
Views: 328

Re: Roth IRA Backdoor Investment question

If you believe your Roth IRAs will be used for retirement, invest them like your other retirement money. If there is a decent possibility the money will be used for college, invest it more conservatively (not just in stocks) and when a few years out, make it even more conservative by putting it all ...
by retiredjg
Thu Aug 09, 2018 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401k and Roth 401k?
Replies: 14
Views: 575

Re: Traditional 401k and Roth 401k?

It is more likely you are just not communicating because the terminology is awkward until you learn it. What you think you are asking and what she thinks she is answering may be two different things. It is also possible she is wrong, but I would not assume that - the people at the level of answering...
by retiredjg
Thu Aug 09, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for low risk Vanguard fund
Replies: 15
Views: 1068

Re: Looking for low risk Vanguard fund

Welcome to the forum. Questions like this are impossible to answer because people have no idea what your situation looks like. In order to get reliable answers, you should post your information in the format we use to help people with their portfolio questions. See the link at the bottom of this mes...
by retiredjg
Thu Aug 09, 2018 5:19 pm
Forum: Investing - Theory, News & General
Topic: Offering 401k Advice to my coworkers?
Replies: 33
Views: 2610

Re: Offering 401k Advice to my coworkers?

The company has a fiduciary duty to the employees. They will not pass along any information from someone who does not have some kind certification. Doing so would place them in a position of liability. It's like practicing medicine without a license. Their answer to you, disappointing as it was, was...
by retiredjg
Thu Aug 09, 2018 5:11 pm
Forum: Personal Consumer Issues
Topic: Anyone familiar with attic fans?
Replies: 32
Views: 1898

Re: Anyone familiar with attic fans?

knightrider, you may (or may not) have realized you are getting answers about 2 different things. An "attic fan" is a whole house fan that pulls air in open doors and windows to cool the house at night when it is cooler outside than inside. This is what people used before air conditioning. I think y...
by retiredjg
Thu Aug 09, 2018 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401k and Roth 401k?
Replies: 14
Views: 575

Re: Traditional 401k and Roth 401k?

In general, traditional 401k and Roth IRA makes a good combination for many people. There are exceptions though.
by retiredjg
Thu Aug 09, 2018 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401k and Roth 401k?
Replies: 14
Views: 575

Re: Traditional 401k and Roth 401k?

I'm afraid it does not work that way. :( Your elective deferrals (the $18.5k limited amount) can go into traditional 401k and/or Roth 401k, but the total is just $18.5k between the two of theose. If your plan allows "after tax employee contributions", you can contribute more money. This money (usual...
by retiredjg
Wed Aug 08, 2018 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: 2018 - middle of the year portfolio review
Replies: 2
Views: 403

Re: 2018 - middle of the year portfolio review

Mardenia wrote:
Wed Aug 08, 2018 9:53 am
Desired allocation is 65% stock and 35% bonds
How am I doing?
Well, how do YOU think you are doing? :happy
by retiredjg
Wed Aug 08, 2018 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k w/457 and Roth IRA-How to balance and allocate
Replies: 19
Views: 862

Re: Solo 401k w/457 and Roth IRA-How to balance and allocate

Can you go directly into your 457b and sell stocks to buy bonds or vice versa? Most people can and this would fix your problem without having to go through the awkward contribution change paperwork. Another fix is to add a bond fund to one of the smaller accounts. Another fix is to use a target fund...
by retiredjg
Tue Aug 07, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous about not using a personal wealth manager. How do I do this myself?
Replies: 135
Views: 6010

Re: Nervous about not using a personal wealth manager. How do I do this myself?

Maybe others think so, but I do not believe that money was a waste. But even if it was, it would not matter in the long run. :happy Why not a waste? Maxsamson, you have learned things. You are starting to think. You are posting here which means you are still trying to learn things. If nothing else, ...