Search found 32291 matches

by retiredjg
Mon May 21, 2018 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: Roth question
Replies: 16
Views: 867

Re: Roth question

5498 reports the method for how money got into the account for the tax year and the fair market value at the end of the year. So yes, it separately reports money that came in through direct contribution, rollover or conversion (for a Roth account). In that case, the poster will definitely have to g...
by retiredjg
Mon May 21, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 17
Views: 1180

Re: Same funds within IRA and Taxable

However, purchases in a 401k can trigger a wash sale in a taxable account. Are you sure? I don't believe such a ruling that has been brought to our attention here. Or an example that it has happened. In fact, when the IRS did issue a clarification regarding IRAs and spouse's IRAs and wash sales, th...
by retiredjg
Mon May 21, 2018 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Roth question
Replies: 16
Views: 867

Re: Roth question

Contact the receiver and see about getting it reclassified as a 60-day rollover. :oops: It does seem like that would work. Again, you might have to tell the custodian you goofed in how you moved the money - should have told them it was a 60 day rollover from the start but you were confused about ho...
by retiredjg
Mon May 21, 2018 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: Roth question
Replies: 16
Views: 867

Re: Roth question

Contact the receiver and see about getting it reclassified as a 60-day rollover. :oops: It does seem like that would work. Again, you might have to tell the custodian you goofed in how you moved the money - should have told them it was a 60 day rollover from the start but you were confused about ho...
by retiredjg
Mon May 21, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 17
Views: 1180

Re: Same funds within IRA and Taxable

But if you are actively trying to learn about tax loss harvest then presumably you might do it in the future, no? My opinion is you are way over thinking this. Hold whatever funds make the most sense for you in whatever accounts. If a TLH opportunity arises you'll have a plan for managing it, like ...
by retiredjg
Mon May 21, 2018 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Roth question
Replies: 16
Views: 867

Re: Roth question

If you had done a transfer from one account to the other, it would have been OK. Or if you'd had your custodian return your contribution, I think it would have been OK. But what the IRS is going to see is two separate contributions, one of which you are not eligible for, and a withdrawal. You were e...
by retiredjg
Mon May 21, 2018 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 17
Views: 1180

Re: Same funds within IRA and Taxable

Several people are paying attention to whether you plan to do tax loss harvesting. I don't think that is all there is to it. What if you need to sell something that is at a loss, even if you have no intention to tax loss harvest? You just need the money, your fund happens to be at a loss, and you do...
by retiredjg
Mon May 21, 2018 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 61
Views: 5842

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

I'd have to say that $1.5 million dollars is a lot to have at one bank or credit union for more than a few days or weeks. I think the FDIC and NCUA limit is $250k, isn't it?
by retiredjg
Mon May 21, 2018 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: 457: Trad or Roth?
Replies: 14
Views: 700

Re: 457: Trad or Roth?

I'm not sure that everyone reading this thread realizes that you are filling both a 403b ($18,500) and a 457 (another $18,500). The question is not about the 403b - it is going to into tax-deferral. The question is what to do with the second account - should it be traditional, Roth or a combination?...
by retiredjg
Mon May 21, 2018 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Appreciate some feedback
Replies: 3
Views: 278

Re: Appreciate some feedback

One other comment. Are you aware of or have you considered using the "back door" in order to contribute to Roth IRA? I no longer suggest this maneuver because so many people mess up the paperwork, but someone will suggest it and it is only right that you are aware that it is an option. If you decide...
by retiredjg
Mon May 21, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Appreciate some feedback
Replies: 3
Views: 278

Re: Appreciate some feedback

Welcome to the forum. To understand your portfolio, you need to be able to see each holding in relation to the rest of the portfolio. That is why we use % of portfolio rather than % of account. Below, I've added $500k to your taxable account and changed all the percentages to % of portfolio. As you ...
by retiredjg
Mon May 21, 2018 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Government Roth 457(b) fees just went up 148%
Replies: 6
Views: 709

Re: Government Roth 457(b) fees just went up 148%

Keepcalm wrote:
Sun May 20, 2018 1:06 am
The fund is VINIX, would this have anyone begin looking else where?
The cost went up, but this is still a lower cost fund. You should look elsewhere if you have other work plans available. If this is your only work plan, you almost certainly need to use it.
by retiredjg
Mon May 21, 2018 6:10 am
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 17
Views: 1180

Re: Same funds within IRA and Taxable

I would use Portfolio A.
by retiredjg
Sun May 20, 2018 4:51 pm
Forum: Investing - Help with Personal Investments
Topic: Help Selling Stock to Diversify
Replies: 9
Views: 418

Re: Help Selling Stock to Diversify

manedark wrote:
Sun May 20, 2018 2:52 pm
He has to also consider if his state taxes the capital gains too, right?
Yes.
by retiredjg
Sun May 20, 2018 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: VG Traditional IRA Brokerage Account?
Replies: 4
Views: 227

Re: VG Traditional IRA Brokerage Account?

Vanguard used to keep it's in-house mutual fund business separate from it's brokerage where it sold ETFs and mutual funds from other companies. A few years back, they moved everything to the brokerage side and since then have tried to get everyone to move all their accounts over there. Not everyone ...
by retiredjg
Sun May 20, 2018 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account Advice
Replies: 10
Views: 1051

Re: Taxable Account Advice

For your taxable account, I suggest only a total stock index and/or a total international index. Adjust the stock to bond ratio in your other accounts.

Some of the others you mentioned are not very tax-efficient (cause you to pay unnecessary taxes).
by retiredjg
Sun May 20, 2018 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help Selling Stock to Diversify
Replies: 9
Views: 418

Re: Help Selling Stock to Diversify

If you are already over NIIT ($250k for a couple), I'd just sell a lot but definitely stay under the $479,000 threshold where the 15% cap gain changes to 20%. If you are over NIIT, you will pay 18.8% on the long term gains no matter how much you sell (if you stay under $479k). There is no financial ...
by retiredjg
Sun May 20, 2018 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 61
Views: 5842

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

Wow, you all are so kind to take the time to help. Thank you! Regarding the $5/month I was hoping to withdraw, I could take out less. I could do 4k, possibly even 3K. I know I can trim expenses. I am preparing for the idea that I will sell the house. It is a money sucker, so big and old. Clearly yo...
by retiredjg
Sun May 20, 2018 10:50 am
Forum: Investing - Help with Personal Investments
Topic: 457: Trad or Roth?
Replies: 14
Views: 700

Re: 457: Trad or Roth?

Since you are driving payroll nuts, it seems you are experiencing a fair amount of stress over this decision. As often happens, the choice between two good decisions is the hardest choice. In the big scheme of things, this is not all that important - don't allow it to bother you much. In the big sch...
by retiredjg
Sun May 20, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Help Selling Stock to Diversify
Replies: 9
Views: 418

Re: Help Selling Stock to Diversify

The goal is to reduce your individual stock. To do that, I'd sell all the losses, sell enough in gains to offset the losses, and sell even more to reduce the total amount you have. The only cost would be taxes on the "even more" amount. It appears that would be taxed at 15% (only the gains, not the ...
by retiredjg
Sun May 20, 2018 10:26 am
Forum: Investing - Help with Personal Investments
Topic: When to and when not to “reinvest dividend and capital gains”
Replies: 24
Views: 2086

Re: When to and when not to “reinvest dividend and capital gains”

Would this be a reasonable approach to reducing lots? 1. Turn off reinvestment of (quarterly) dividends and instead direct them to the account's settlement fund. 2. Contribute regularly (monthly or quarterly) from a bank account to the settlement fund. 3. Each quarter, immediately following dividen...
by retiredjg
Sun May 20, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Allocation and reaching retirement goal yrs before retirement
Replies: 4
Views: 369

Re: Allocation and reaching retirement goal yrs before retirement

I think lowering your stock allocation as you get nearer your goal is very reasonable.
by retiredjg
Sun May 20, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Simplifying to a target retirement fund?
Replies: 9
Views: 626

Re: Simplifying to a target retirement fund?

Calygos wrote:
Sun May 20, 2018 8:12 am
Ah, just realized I misread something. The point about bonds in a target fund not being tax-efficient had me thinking of the target fund in the tIRA, but his point was about not having the target fund in my taxable account, which totally makes sense.
Yes, that is what I meant.
by retiredjg
Sun May 20, 2018 9:26 am
Forum: Investing - Help with Personal Investments
Topic: 457: Trad or Roth?
Replies: 14
Views: 700

Re: 457: Trad or Roth?

Welcome to the forum! I think you will continue to get multiple answers to your question. Here's my thinking. I contribute to a defined benefit pension plan through the state, max out my 403(b), 457, and Roth IRA every year, and invest 1k/month in a taxable account. The presence of a pension makes t...
by retiredjg
Sun May 20, 2018 7:30 am
Forum: Investing - Help with Personal Investments
Topic: Simplifying to a target retirement fund?
Replies: 9
Views: 626

Re: Simplifying to a target retirement fund?

Another reason not to do it is that sometimes people don't have access to low cost target funds in a 401k.
by retiredjg
Sun May 20, 2018 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Simplifying to a target retirement fund?
Replies: 9
Views: 626

Re: Simplifying to a target retirement fund?

Sometimes putting a target fund in taxable is not the best approach for a couple of reasons. If you are in a higher tax bracket, the bonds in the target fund would not be very tax-efficient. Also, the target fund means you could not sell stocks or bonds without selling both. In a taxable account, ke...
by retiredjg
Sun May 20, 2018 7:16 am
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 61
Views: 5842

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

I met with three banks and also a financial planning firm. It is painful to think of paying those fees...1.25 from the financial planner and 1.1 from the bank. I am very interested in the Boglehead philosophy and just ordered some of the recommended books. Not only would it be painful, I don't thin...
by retiredjg
Sat May 19, 2018 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: Would like to simplify my portfolio. Any thoughts?
Replies: 23
Views: 850

Re: Would like to simplify my portfolio. Any thoughts?

An IRA is not enough saved to expect a decent retirement.

You will still get the best and most advice if you post your whole picture. For example, maybe you need to consider a Solo 401k or SEP IRA or SIMPLE IRA.

Maybe you are not ready just yet. Keep it in mind for when you are.
by retiredjg
Sat May 19, 2018 5:51 pm
Forum: Investing - Help with Personal Investments
Topic: Would like to simplify my portfolio. Any thoughts?
Replies: 23
Views: 850

Re: Would like to simplify my portfolio. Any thoughts?

See the link at the bottom of this message for how to get to most help with this type of question.

Your portfolio plan should start with the most inflexible account you have. This is often a work plan like a 401k or 403b.
by retiredjg
Sat May 19, 2018 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Why diversify 401k
Replies: 14
Views: 970

Re: Why diversify 401k

What you are considering is called "chasing returns" or "skating to where the puck was". It is not a very effective model for investing. You have to skate to where the puck will be if you ever hope to hit it. Guilty of that i am... thanks for your input retiredjg! So....did you wonder how to know h...
by retiredjg
Sat May 19, 2018 8:38 am
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 17
Views: 1180

Re: Same funds within IRA and Taxable

Another question: I have Vanguard Inst Index Fund Inst Plus (VIIIX) in my 401k. Should that affect me in exchanging to Vanguard SP500 VFIAX in my Roth? I believe these are same funds but with different classes. There is no problem holding the same fund in 401k and Roth IRA. A wash sale, if that is ...
by retiredjg
Sat May 19, 2018 8:08 am
Forum: Investing - Theory, News & General
Topic: If RMD are large should you still defer into 401k
Replies: 18
Views: 1900

Re: If RMD are large should you still defer into 401k

How much of the RMD do you expect to use to live on? If you need lot of the RMD, it doesn't really matter how large it is, or so it seems to me. If there are pensions involved or other reasons you don't need much of the RMD, you probably need to retire now if your goal is financial optimization or p...
by retiredjg
Fri May 18, 2018 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 104
Views: 6061

Re: Dave Ramsey it or keep low interest debt

pennylane wrote:
Fri May 18, 2018 8:06 pm
Do people actually take DR seriously? 🙄
I think many people here think DR is great for helping people get out of monstrous debt. Maybe one of the best.

But I think most would not have great things to say for DR's investment advice.
by retiredjg
Fri May 18, 2018 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Additional Small Cap Exposure - Which Account?
Replies: 10
Views: 721

Re: Additional Small Cap Exposure - Which Account?

I don't know what you should do, but I would probably do something like that. Whether you use small cap or extended market is not terribly important. Just pick what you want.

If you want extra small cap, use something other than 80/20 in the Roth IRA.
by retiredjg
Fri May 18, 2018 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 104
Views: 6061

Re: Dave Ramsey it or keep low interest debt

Pajamas wrote:
Fri May 18, 2018 5:20 pm
If it didn't matter financially, then why would he even be struggling with making a decision?
I think people sometimes don't know what they think until they ask others for an opinion and then realize "I knew what I thought all along, but did not know it!"
by retiredjg
Fri May 18, 2018 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 104
Views: 6061

Re: Dave Ramsey it or keep low interest debt

Sounds like a win - win.
by retiredjg
Fri May 18, 2018 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 104
Views: 6061

Re: Dave Ramsey it or keep low interest debt

.... but heart would prefer to payoff That's the answer then. Why should he decide by emotion instead of reason? Because financially it will not matter, but emotionally it apparently does matter. Why keep an emotional burden when there no quality of life benefit to be gained on the other end?
by retiredjg
Fri May 18, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Moving taxable investments...tax-free?
Replies: 11
Views: 859

Re: Moving taxable investments...tax-free?

I believe the taxable income number I care about is line 43 on Form 1040. Moving from CDs and Treasuries to munis and I-bonds would decrease (or, in the case of I-bonds, defer) interest income, allowing me to sell more shares of the taxable mutual funds to hit my target of $77,400 on line 43. The n...
by retiredjg
Fri May 18, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 104
Views: 6061

Re: Dave Ramsey it or keep low interest debt

Meaty wrote:
Fri May 18, 2018 4:33 pm
.... but heart would prefer to payoff
That's the answer then.
by retiredjg
Fri May 18, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Additional Small Cap Exposure - Which Account?
Replies: 10
Views: 721

Re: Additional Small Cap Exposure - Which Account?

The way I'm reading it- is that it's only a problem when I "sell" shares and possibly have auto-reinvested distributions to "buy" shares. So basically: 1) I make lump sum contributions in my Roth every January, so I guess as long as I don't "sell" any shares around December, I should be fine? The "...
by retiredjg
Fri May 18, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 104
Views: 6061

Re: Dave Ramsey it or keep low interest debt

I don't think your debt is the kind that "needs" to be paid ahead of schedule. It also does not appear that debt is a problem for you - by that I mean some people have problems managing money and living within their means and are always just getting by by taking on debt they can't afford. That does ...
by retiredjg
Fri May 18, 2018 8:18 am
Forum: Investing - Help with Personal Investments
Topic: Additional Small Cap Exposure - Which Account?
Replies: 10
Views: 721

Re: Additional Small Cap Exposure - Which Account?

2) kept total markets in Roth and Taxable This (having the same funds in Roth and taxable) will eventually cause you a problem with wash sales (not illegal, but something that has to be dealt with on your taxes). Are you familiar with that? If not, see the Wiki (link above) and look at "tax loss ha...
by retiredjg
Fri May 18, 2018 6:39 am
Forum: Investing - Help with Personal Investments
Topic: Additional Small Cap Exposure - Which Account?
Replies: 10
Views: 721

Re: Additional Small Cap Exposure - Which Account?

What is the reason of your choice of Roth before taxable? Most people should fill a 401k and (Roth) IRA before putting money for retirement into a taxable account. If you can save enough to put money in all three, I'd put the broader index funds (total stock and total international) into taxable be...
by retiredjg
Thu May 17, 2018 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: Additional Small Cap Exposure - Which Account?
Replies: 10
Views: 721

Re: Additional Small Cap Exposure - Which Account?

If the small cap fund in your 401k is low cost, that is a fine place to put it. If you run out of space there, the Roth IRA would be my next choice. You don't seem to have any bonds in your portfolio. Having some bonds is a good idea. I'd encourage you to reconsider your 100% stock allocation, proba...
by retiredjg
Thu May 17, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Allocation help
Replies: 10
Views: 344

Re: Allocation help

That is a lot of gains and your idea does make some sense. But Health Care is not a tax efficient fund - probably should not be held in a taxable account. I'm not familiar with Vanguard's tech funds, but if they are not index funds, chances are they should not be held in taxable either. Do you have ...
by retiredjg
Thu May 17, 2018 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Allocation help
Replies: 10
Views: 344

Re: Allocation help

Unless you are just being wishy washy, what makes sense is to sell things you do not want and buy what you do want. Doing otherwise is letting the tax tail wag the dog. Design a portfolio you want for now and a long time in the future. Start buying those funds. Start selling the funds you don't want...
by retiredjg
Thu May 17, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Question
Replies: 6
Views: 599

Re: Asset Allocation Question

Are there any suggestions what my taxable account asset allocation should be or is the standard advice just to keep your asset allocation the same across all monies? My suggestion is to have one asset allocation that includes all the money, with most or all of the bonds in a 401k or IRA. But it doe...