Search found 30705 matches

by retiredjg
Tue Dec 12, 2017 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Converting Part of 401K to IRA and then to Roth?
Replies: 8
Views: 401

Re: Converting Part of 401K to IRA and then to Roth?

The law allows you to do it over time. You'll have to read your plan summary statement or ask someone who knows - your plan might allow unlimited distributions, a certain number a year, or just one and done.
by retiredjg
Tue Dec 12, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: FEHB and Medicare
Replies: 5
Views: 251

Re: FEHB and Medicare

I'm glad I have both. I do pay more for insurance than some people, but I don't pay any medical bills. That suits me fine. I've never had Kaiser, but have always heard good things. If she likes Kaiser, I think it is best to have both unless she simply cannot afford the premiums. Since you didn't men...
by retiredjg
Tue Dec 12, 2017 9:27 am
Forum: Investing - Help with Personal Investments
Topic: RMD and Roth IRA conversions
Replies: 8
Views: 813

Re: RMD and Roth IRA conversions

Why is it that when retired you can start withdrawing large amounts from your 401k and start putting the money into the Roth IRA. Over the working limits. I see this is a way to reduce RMD's when you reach 70.5 yrs. You don't have to be retired to do this. You can convert as much as you want any ti...
by retiredjg
Tue Dec 12, 2017 9:08 am
Forum: Investing - Help with Personal Investments
Topic: What to do after losing $117k in stock market?
Replies: 60
Views: 4384

Re: What to do after losing $117k in stock market?

Welcome to the forum! Just about everybody here has had some permanent losses. Some of us have done stupid stuff. Some have paid "advisors" for poor advice. And, like you, some have gambled and lost. Time to dust yourself off and start over. This time, invest rather than gamble. Read the links alrea...
by retiredjg
Tue Dec 12, 2017 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Conflicting goals, and limited income
Replies: 17
Views: 1668

Re: Conflicting goals, and limited income

So, since there is a bond allocation I would want the funds in a tax deferred account? Typically I cant withdraw from a 401k. The only thing I can withdraw from would be a Roth IRA if I was going 80/20. Im still confused on how I would be able to get away with that Asset Allocation compared to if i...
by retiredjg
Mon Dec 11, 2017 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Minimize Expense Ratios or Bonds in 401(k)?
Replies: 9
Views: 516

Re: Minimize Expense Ratios or Bonds in 401(k)?

The fixed income fund closely tracks the performance of the benchmark. Over the past 10 years, it is actually averaging a return 20 basis points higher than the benchmark. If I go this route, I am planning to put my entire bond allocation in my 401k. It feels wrong to willingly pay a higher expense...
by retiredjg
Mon Dec 11, 2017 4:26 pm
Forum: Personal Consumer Issues
Topic: detergent without non-recyclable packaging?
Replies: 27
Views: 1338

Re: detergent without non-recyclable packaging?

I was going to suggest the Seventh Generation 'bottles' made out of recycled cardboard and newspaper . However, upon closer examination, it looks like the outer 'bottle' is only for shape and stability. The actual detergent is inside in a plastic pouch :oops: The outside cardboard mold can be recyc...
by retiredjg
Mon Dec 11, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1835

Re: When to start taking distributions from 401K

Now my question still stands should I pull the 50K out now in 2017 or 2018 and just pay the house off or take the money gradually out of the roll over? What are your thoughts on that score? I've continued to think about this. Regarding income in 2018.....Your 2016 income is a done deal and it deter...
by retiredjg
Mon Dec 11, 2017 8:07 am
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2339

Re: What mix of intermediate and short term bonds?

I don't know the answer to your question, but I think it is important for people to realize that an intermediate term bond FUND may contain individual bonds of all terms - short, intermediate, and long term. Like total bond market - all those bonds are not intermediate term. It contains bonds of al...
by retiredjg
Mon Dec 11, 2017 7:06 am
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 59
Views: 2547

Re: Stocks always in taxable for tax efficient investing?

[*]Given the above to points, isn't it reasonably straightforward to calculate which placement should yield the most after tax return? In a sense, I believe this was done in a general manner back in early Boglehead times. It is likely discussed in the original book which I don't have any more. I wa...
by retiredjg
Mon Dec 11, 2017 6:21 am
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2339

Re: What mix of intermediate and short term bonds?

I don't know the answer to your question, but I think it is important for people to realize that an intermediate term bond FUND may contain individual bonds of all terms - short, intermediate, and long term. Like total bond market - all those bonds are not intermediate term. It contains bonds of al...
by retiredjg
Sun Dec 10, 2017 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Converting Part of 401K to IRA and then to Roth?
Replies: 8
Views: 401

Re: Converting Part of 401K to IRA and then to Roth?

If your old plan allows a partial withdrawal, there is no reason to move from 401k--->IRA--->Roth IRA. You can move money directly from the 401k to the Roth IRA. This way you would not get "caught" with any unconverted money in IRA if you want to use the back door. Understood, however my goal was t...
by retiredjg
Sun Dec 10, 2017 5:10 pm
Forum: Investing - Theory, News & General
Topic: Schwab 25% Cheaper than Vanguard?
Replies: 13
Views: 1363

Re: Schwab 25% Cheaper than Vanguard?

Enough to make a meaningful difference?
by retiredjg
Sun Dec 10, 2017 5:08 pm
Forum: Investing - Theory, News & General
Topic: Back door ROTH eligibility
Replies: 11
Views: 781

Re: Back door ROTH eligibility

Well, it is NOT beneficial if you have other IRAs - SIMPLE, SEP, Rollover, etc. Roth IRA is OK.
by retiredjg
Sun Dec 10, 2017 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Converting Part of 401K to IRA and then to Roth?
Replies: 8
Views: 401

Re: Converting Part of 401K to IRA and then to Roth?

If your old plan allows a partial withdrawal, there is no reason to move from 401k--->IRA--->Roth IRA. You can move money directly from the 401k to the Roth IRA. This way you would not get "caught" with any unconverted money in IRA if you want to use the back door.
by retiredjg
Sun Dec 10, 2017 2:30 pm
Forum: Investing - Theory, News & General
Topic: How are 401k withdrawals taxed when you retire?
Replies: 12
Views: 1382

Re: How are 401k withdrawals taxed when you retire?

Whatever you take out of your 401k will be taxed at your ordinary tax rate. Your ordinary tax rate is likely to be less in retirement than while working. A person making that much money should almost always be using tax-deferred 401k, to the max. https://www.bogleheads.org/wiki/Traditional_versus_Roth
by retiredjg
Sun Dec 10, 2017 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate between 401k with expensive fees + Vangaurd
Replies: 38
Views: 2231

Re: How to allocate between 401k with expensive fees + Vangaurd

You are already diversified. Don't need to do anything.
by retiredjg
Sun Dec 10, 2017 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1835

Re: When to start taking distributions from 401K

And if you are wondering why my estimate is not 4% of your assets....it's because you are already paying out over 1% to your advisor. That's part of your 4% so you only get to use about 3% for yourself.

Tough idea to swallow.
by retiredjg
Sun Dec 10, 2017 2:17 pm
Forum: Investing - Theory, News & General
Topic: Schwab 25% Cheaper than Vanguard?
Replies: 13
Views: 1363

Re: Schwab 25% Cheaper than Vanguard?

Is there a meaningful difference between the funds? Unlikely, but if held in a taxable account, the Vanguard fund is likely to be more tax efficient because of Vanguard's fund structure. SCHB is an ETF. Yes it is. Thanks for catching that. I wonder if Schwab's ETF is more or less tax-efficient than...
by retiredjg
Sun Dec 10, 2017 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Question- 401K Rollover to IRA or Keep in 401K
Replies: 4
Views: 200

Re: Retirement Question- 401K Rollover to IRA or Keep in 401K

He would like to try to improve on the 1.9 percent so he at least stays above inflation plus a little extra. The question is whether or not he should move his 401K money to an IRA which will allow him to pick and choose where to take the RMD's. He is wary about investing in a hot stock market now i...
by retiredjg
Sun Dec 10, 2017 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: New Young Investor: Roth IRA: Mutual Funds, ETFs, or Index?
Replies: 8
Views: 452

Re: New Young Investor: Roth IRA: Mutual Funds, ETFs, or Index?

I too suggest a target fund, but there is another possibility if you are interested.

Consider what you have in your 403b. Is there a fund there that you could buy at lower cost outside the 403b? If so, you could put that into your Roth IRA for lower overall portfolio cost.
by retiredjg
Sun Dec 10, 2017 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1835

Re: When to start taking distributions from 401K

FiveK wrote:
Sun Dec 10, 2017 1:47 pm
Spend with a clear conscience and zero heart burn!
Just don't spend too much. :happy

You could easily pull $20-25k from your investments every year without being reckless. Of course, you may not want to if it puts you over the IRMAA line.
by retiredjg
Sun Dec 10, 2017 1:25 pm
Forum: Investing - Theory, News & General
Topic: Schwab 25% Cheaper than Vanguard?
Replies: 13
Views: 1363

Re: Schwab 25% Cheaper than Vanguard?

Is there a catch? Probably not directly, but it seems like a marketing gimmick to me. Is there a meaningful difference between the funds? Unlikely. The real question is whether that "25% lower" is meaningful. If you have $100,000 invested, the difference will be $10 a year. That is certainly no rea...
by retiredjg
Sun Dec 10, 2017 12:59 pm
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2339

Re: What mix of intermediate and short term bonds?

I don't know the answer to your question, but I think it is important for people to realize that an intermediate term bond FUND may contain individual bonds of all terms - short, intermediate, and long term. Like total bond market - all those bonds are not intermediate term. It contains bonds of all...
by retiredjg
Sun Dec 10, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Easiest company for backdoor Roth
Replies: 8
Views: 482

Re: Easiest company for backdoor Roth

TN Bogle wrote:
Sun Dec 10, 2017 11:53 am
Is there any benefit....
There is no tax loss harvesting inside a Roth IRA.
by retiredjg
Sun Dec 10, 2017 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 707

Re: Recommendation Best fund for retirees in taxable

Their tax bracket is much lower. They wanted to gift us money from their estate while they are still alive. They have no knowledge of investing and right now their money is sitting in cds and cash. After a long conversation, they realize the importance of taking some risk for keeping their money up...
by retiredjg
Sun Dec 10, 2017 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 707

Re: Recommendation Best fund for retirees in taxable

Illinois, so no state specific funds I am aware of. I could do something like 30% vanguard total world and 70% vanguard intermediate. Muni fund. I wonder if the munis aren’t as diversified and riskier than a mix of treasuries and corporates (such as total bond market)? I think that sounds like a ni...
by retiredjg
Sun Dec 10, 2017 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Easiest company for backdoor Roth
Replies: 8
Views: 482

Re: Easiest company for backdoor Roth

I would think they would all be about the same. I only have experience at Vanguard. You can open an account online, transfer money in, do a conversion on line....done.

I can't imagine the other brokerages being much different.
by retiredjg
Sun Dec 10, 2017 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Cash heavy and unsure
Replies: 12
Views: 969

Re: CDs and treasuries

34Leon wrote:
Sat Dec 09, 2017 10:50 pm
Why would anyone buy treasuries over CDs?
Treasuries are easier to buy inside an IRA or a 401k which is where a lot of people hold their money. It is not impossible to buy a CD inside an IRA but that usually involves holding an IRA at a separate place (a bank) or using brokered CDs.
by retiredjg
Sun Dec 10, 2017 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 707

Re: Recommendation Best fund for retirees in taxable

Vanguard's Tax Managed Balanced fund, VTMFX, is 50% US stocks and 50% tax exempt bonds might fit. The down side of not holding pure stock funds or pure TE bond funds in a taxable account is you may lose tax loss harvesting possibilities and more difficulty rebalancing. I thought about this fund but...
by retiredjg
Sun Dec 10, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Reasons why not to shorten target fund
Replies: 9
Views: 508

Re: Reasons why not to shorten target fund

Thesaints wrote:
Sun Dec 10, 2017 11:15 am
Shouldn’t taxes on realized capital gains be the first concern ?
I guess we have all assumed this money is in 401k or IRA. There would be no capital gains there. But the post does not say 401k or IRA - it is sort of implied by the separate accounts though.
by retiredjg
Sun Dec 10, 2017 11:11 am
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 707

Re: Recommendation Best fund for retirees in taxable

I would like a recommendation for a fund for several risk averse retirees in a taxable account. The main goal is for the money (low 6 figures) to keep up with inflation. They are ok with an allocation to stocks. They have no need for this money for anticipated expenses, only potentially for medical...
by retiredjg
Sun Dec 10, 2017 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Help Choosing a Fidelity Bond Index Fund
Replies: 19
Views: 919

Re: Help Choosing a Fidelity Bond Index Fund

Check your decimal point. One is .045% and one is .45% . That is a significant difference (.4%) in my book. :happy
by retiredjg
Sun Dec 10, 2017 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Reasons why not to shorten target fund
Replies: 9
Views: 508

Re: Reasons why not to shorten target fund

There usually is not a fee to exchange one fund to another inside a 401k. She would need to check her plan. The 2020 fund would be a little more appropriate for her age, but it all depends on your overall risk tolerance.
by retiredjg
Sun Dec 10, 2017 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Help Choosing a Fidelity Bond Index Fund
Replies: 19
Views: 919

Re: Help Choosing a Fidelity Bond Index Fund

I'm surprised at the love for FSITX (Fidelity U.S. Bond Premium Class), when FTBSX (Fidelity Total Bond Index) has had better returns over the 1, 3, 5, and 10 year periods, it's Manager Tenure is much longer, and it's cost is exactly the same at .045%, not the .030% quoted above. I think you may me...
by retiredjg
Sun Dec 10, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Help Choosing a Fidelity Bond Index Fund
Replies: 19
Views: 919

Re: Help Choosing a Fidelity Bond Index Fund

I'm in the process of restructuring my Roth IRA holdings to be three funds- total stock, total bond, total international. I was looking at FSITX in Fidelity, and I was wondering why it received only a 3 star rating from Morningstar. Is this the best Fidelity Total Bond Index Fund, or are there bett...
by retiredjg
Sun Dec 10, 2017 9:39 am
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1835

Re: When to start taking distributions from 401K

Maybe I have been misinformed so I have another question. I had beaten into me many years ago that the Roll over IRA and 401K money was NEVER to be touched until you hit 70.5 and were forced to take it out as an RMD. You should not touch that money unless you had some horrific financial problem. Is...
by retiredjg
Sun Dec 10, 2017 7:12 am
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1835

Re: When to start taking distributions from 401K

Nick, than you for the update. I had not realized you are already taking SS and a pension. That explains the salary difference I could not explain. Do you understand that you can eliminate the higher Medicare costs by making an appeal after you retire? It seems like maybe you haven't understood that...
by retiredjg
Sat Dec 09, 2017 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Spousal IRA - can an existing rollover IRA be used?
Replies: 10
Views: 364

Re: Spousal IRA - can an existing rollover IRA be used?

saltycaper wrote:
Sat Dec 09, 2017 3:38 pm
retiredjg wrote:
Sat Dec 09, 2017 3:16 pm

But that technically makes it no longer a Rollover IRA even if the name does not change. This only matters if you work again and want to roll your IRA into your new 401k.
Might it also affect protection from creditors?
I have no idea.
by retiredjg
Sat Dec 09, 2017 3:36 pm
Forum: Investing - Theory, News & General
Topic: Traditional vs Roth IRA at high tax brackets?
Replies: 6
Views: 714

Re: Traditional vs Roth IRA at high tax brackets?

Your accountant is correct that the tax is or might be less, but your accountant is wrong because the amount of tax paid does not matter. What matters is how much money you end up with. Invest your $10k and double it and pay tax later at 25%. Your $10k becomes $20k and the tax later is $5k and you e...
by retiredjg
Sat Dec 09, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Spousal IRA - can an existing rollover IRA be used?
Replies: 10
Views: 364

Re: Spousal IRA - can an existing rollover IRA be used?

There is no such thing as a "spousal IRA" so no designation is needed. It's simply an IRA. The IRS does not care who earned the income. You are allowed to put your current IRA contributions, based on your spouse's income, in the Rollover IRA. But that technically makes it no longer a Rollover IRA ev...
by retiredjg
Sat Dec 09, 2017 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: TSP 401k Contribution Question
Replies: 9
Views: 463

Re: TSP 401k Contribution Question

I remember running into this and also believe it can vary by agency and/or by who your "finance center" is. Sometimes the last pay period goes on the current year and sometimes it goes on the next year. Look at the last Leave and Earnings statement from December 2016 and the first one from January 2...
by retiredjg
Sat Dec 09, 2017 2:26 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 59
Views: 2547

Re: Stocks always in taxable for tax efficient investing?

In other words, it only makes sense if you tax adjust your asset allocation and pretend you don't have money that is in your accounts....not going there. :happy My point is that people think they need to create taxable space for stocks and that stocks should only be held in taxable accounts. That wa...
by retiredjg
Sat Dec 09, 2017 1:22 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 59
Views: 2547

Re: Stocks always in taxable for tax efficient investing?

The advice to put stocks, rather than bonds, into taxable accounts come straight from the Wiki . I agree many people get that message from the Wiki, but they are missing the fact that filling your tax-advantaged accounts first is a goal of higher importance. It is stated in the Wiki, but people are...
by retiredjg
Sat Dec 09, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Reasons why not to shorten target fund
Replies: 9
Views: 508

Re: Reasons why not to shorten target fund

The 2020 fund has about 55% stocks/45% bonds. The 2025 fund has about 64% stocks/36% bonds. If you move her money to the lower stock fund, it will make less money, but probably not a lot less. You already know that. It's the only downfall I can think of. Why are you feeling the need to reduce your o...
by retiredjg
Sat Dec 09, 2017 12:34 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 59
Views: 2547

Re: Stocks always in taxable for tax efficient investing?

Right. I never am sure if people misstate these principles in the forum because they just are using a language short-cut or because they don't understand the underlying rule-of-thumb. And the third possibility is that statements are correct as intended, but misinterpreted by the reader. I'd have to...
by retiredjg
Sat Dec 09, 2017 12:04 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 59
Views: 2547

Re: Stocks always in taxable for tax efficient investing?

I'm beginning to question the rule of thumb that stocks should always be in taxable account. There is no such rule of thumb. I don't know where people are getting this idea...you are certainly not the first. If it is from our Wiki page, it needs to be edited. The rule of thumb is more like... "Fill...
by retiredjg
Sat Dec 09, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Screwed over with regards to 401k distribution. What can I do?
Replies: 16
Views: 1546

Re: Screwed over with regards to 401k distribution. What can I do?

lext wrote:
Sat Dec 09, 2017 11:21 am
Now that I have the chance to look with a calmer mind then yes the check is to Fidelity.
:oops: :thumbsup ;-)