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by retiredjg
Thu Aug 16, 2018 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Source of Roth Funding
Replies: 12
Views: 554

Re: Question on Source of Roth Funding

Just use plain words to tell us what you have and what you want to do with it. Then maybe we can help you figure out what to do.
by retiredjg
Thu Aug 16, 2018 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Source of Roth Funding
Replies: 12
Views: 554

Re: Question on Source of Roth Funding

soazfree wrote:
Thu Aug 16, 2018 7:11 pm
Hmm, I didn’t think that the mega back door had a dollar limit on what you could do? Maybe I’m using the wrong terms for describing? Thank you for feedback
The mega back door is something you do with your plan at work (a 401k, etc.)
by retiredjg
Thu Aug 16, 2018 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Source of Roth Funding
Replies: 12
Views: 554

Re: Question on Source of Roth Funding

soazfree wrote:
Thu Aug 16, 2018 7:01 pm
I thought a “back door” was when you first would use the $200k cash to open a tIRA and then immediately convert to a Roth.
That would be a "back door" all right, but you can only put $5,500 ($6,500 if over 50) in the tIRA each year.
by retiredjg
Thu Aug 16, 2018 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 29
Views: 2120

Re: High tax bracket - Go 100% Roth in tax advantaged?

I would stop using the non-governmental 457b and use traditional 401k. You need some tax-deferral. You probably don't need two accounts worth of tax-deferral though, especially with a pension, and non-govenrmental 457bs have issues. I might use a combination of traditional and Roth 401k. I wold not ...
by retiredjg
Thu Aug 16, 2018 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Source of Roth Funding
Replies: 12
Views: 554

Re: Question on Source of Roth Funding

Sorry, but I found your post confusing. I do not think you are talking about the back door at all. Instead,it seems you are talking about Roth conversions. Why do you think you could do a $200k Roth conversion without any taxes? That would be unusual. Maybe if you tell us what you have and what you ...
by retiredjg
Thu Aug 16, 2018 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: Ran out of space in Roth. Where should I put Small Cap Value fund now?
Replies: 4
Views: 362

Re: Ran out of space in Roth. Where should I put Small Cap Value fund now?

The Vanguard SCV fund is not tax-inefficient. It may have been at one time, at least sometimes, but since the addition of the ETF asset class, it is just fine to hold in taxable. One issue is that you do not want to intentionally or unintentionally tax loss harvest this fund because that could cause...
by retiredjg
Thu Aug 16, 2018 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Why the Yale Endowment Hate?
Replies: 56
Views: 3767

Re: Why the Yale Endowment Hate?

Choking on all the ivy here.... :shock: Let's talk about the retirement portfolio. You have posted what you have in Roth IRA. That should not the same thing as what is in your portfolio. And it is what is in the portfolio that matters, not one account in a portfolio. I don't think there is a lot of ...
by retiredjg
Thu Aug 16, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie [Where to start?]
Replies: 2
Views: 100

Re: Newbie [Where to start?]

Welcome. The place to start your education is here.

https://www.bogleheads.org/wiki/Getting_started

When you are ready for advice on your portfolio, use the format in the link posted in the above message.
by retiredjg
Thu Aug 16, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2112

Re: Should I Max Out Tax-Deferred Accounts?

Well, that makes it make some sense. Thank you.

It still requires a person to have 5 years of expenses saved (in addition to money in taxable to pay the taxes on the Roth conversions).
by retiredjg
Thu Aug 16, 2018 10:50 am
Forum: Investing - Help with Personal Investments
Topic: [How can I simplify rebalancing across multiple accounts?]
Replies: 15
Views: 1331

Re: [How can I simplify rebalancing across multiple accounts?]

I think you may have misunderstood. The "usual way" we plan a retirement portfolio is to include a married couple's retirement assets all together. This allows the flexibility to choose the best funds from each plan. Sometimes that helps make the overall cost less. Reasons that people might not want...
by retiredjg
Thu Aug 16, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2112

Re: Should I Max Out Tax-Deferred Accounts?

Regarding the infamous Roth pipeline.....it probably has a use somewhere, but it is is not really going to solve a problem for you (in my opinion). You would be converting tIRA to Roth IRA for some years right before retirement. Right before retirement will likely be your highest income years....th...
by retiredjg
Thu Aug 16, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2112

Re: Should I Max Out Tax-Deferred Accounts?

Some thoughts I've had reading this over. Your estimation of needing $2.5 Million ($100k x 25) tells me that you do not intend to live a very lavish lifestyle in retirement. It seems your intent is to be comfortable, not spendy. But it seems unlikely that $100k will accomplish that by the time you g...
by retiredjg
Thu Aug 16, 2018 6:39 am
Forum: Investing - Help with Personal Investments
Topic: [How can I simplify rebalancing across multiple accounts?]
Replies: 15
Views: 1331

Re: [How can I simplify rebalancing across multiple accounts?]

RIMDBogle wrote:
Wed Aug 15, 2018 11:01 pm
I excluded my spouse accounts now
I may be confused about what is going on, but usually a spouse's retirement assets would be included in the couple's retirement portfolio.

There are a few occasions when people prefer to keep them separate. Is that what you are saying?
by retiredjg
Wed Aug 15, 2018 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Convert TSP to roth on retirement?
Replies: 7
Views: 472

Re: Convert TSP to roth on retirement?

I'd say the tsp makes up ~ 40% of my portfolio. I also have a Roth IRA (15%?) and a taxable account with the remainder. I'm 35, retirement is 5-10 years out. Currently in 28% tax bracket, but if i convert, I expect to be in the 15% tax bracket. I should have enough existing roth contributions avail...
by retiredjg
Wed Aug 15, 2018 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2112

Re: Should I Max Out Tax-Deferred Accounts?

I'll have to respond to your post tomorrow or the next day. But for now, keep in mind that some of the responses that say "fill all your tax-deferred accounts" do not seem to understand the amount of money you are talking about. It is good advice for 1 plan or a couple with two plans total. You are ...
by retiredjg
Wed Aug 15, 2018 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Convert TSP to roth on retirement?
Replies: 7
Views: 472

Re: Convert TSP to roth on retirement?

It is not possible to answer this question reliably with only the information given. Things like how much of your portfolio is tax deferred, what other accounts you have, your tax bracket when you do the conversions, your age when you retire, your marital status, the size of your TSP, and probably s...
by retiredjg
Wed Aug 15, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: megabackdoor impact on tIRA.
Replies: 2
Views: 284

Re: megabackdoor impact on tIRA.

Agree with what Duckie said. If you roll the after-tax account directly to Roth IRA, your tIRA is not involved at all. You will pay tax on the earnings part, but no pro-rating with your tIRA will occur. You can choose to roll the after tax money to Roth and the earnings (pre-tax) to the tIRA if you ...
by retiredjg
Wed Aug 15, 2018 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Back Door Roth IRA - possible or not?
Replies: 6
Views: 328

Re: Mega Back Door Roth IRA - possible or not?

-->So if I understand you correctly, there are two premises that had to be met in order to do employer back door roth ira conversion: 1) you are saying my employer has to offer "the opportunity to make employee after tax contributions" after I contributed to the pretax account of 403b and 457b? You...
by retiredjg
Wed Aug 15, 2018 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Efficiency vs. Lower Basis Points
Replies: 5
Views: 303

Re: Tax Efficiency vs. Lower Basis Points

I would not move anything to save 2 basis points.

There could be other reasons to move it, but nothing jumps out from what you have told us.
by retiredjg
Wed Aug 15, 2018 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Back Door Roth IRA - possible or not?
Replies: 6
Views: 328

Re: Mega Back Door Roth IRA - possible or not?

Yes, there seems to be a gap in your understanding. Your plan has to offer two things - the opportunity to make employee after tax contributions (this is different from Roth 401k) and the opportunity to roll that account to Roth 401k (in-plan Roth rollover) or out to Roth IRA. Without both of those,...
by retiredjg
Wed Aug 15, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: Should I Max Out Tax-Deferred Accounts?
Replies: 28
Views: 2112

Re: Should I Max Out Tax-Deferred Accounts?

Welcome to the forum. I'm don't think I'm going to jump on this "yes, max them out" train just yet. You may be deferring tax on too much income. I am in the lucky position of having both a high contribution limit to 401(k) or equivalent accounts and the potential ability in the coming years to max t...
by retiredjg
Wed Aug 15, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation across 401k/taxable/Roth ira
Replies: 3
Views: 221

Re: Asset allocation across 401k/taxable/Roth ira

Agree that you could increase your 401k contributions from your salary while living on the cash you receive from your windfall. In one year or a year and a few months, all the windfall will be transferred into your 401k and you can resume what you are doing. There is no need to add a taxable account...
by retiredjg
Wed Aug 15, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Moving rollover IRA to 401k- timing and lost returns.
Replies: 10
Views: 424

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

There is nothing you can do except be out of the market for the time it takes to get it done. A 401k will not accept transfers in kind that I know of. They only accept cash. If you want to do 2 or 3 rollovers to dilute the risk and if you can get them all done by the end of the year that might help ...
by retiredjg
Wed Aug 15, 2018 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Moving rollover IRA to 401k- timing and lost returns.
Replies: 10
Views: 424

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

If you did a back door maneuver to get money into Roth IRA this year, you do need to get that IRA rolled into your 401k before the end of the year.
by retiredjg
Wed Aug 15, 2018 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Max'ing contribution to retirement accts
Replies: 8
Views: 1125

Re: Max'ing contribution to retirement accts

Thanks this is helpful. So in theory I can open a tIRA, deposit $5,500 after-tax and roll into Roth IRA. Since I have no other tIRAs, I assume its ok to just go to Roth IRA, versus trying to rollover into my 401k and then doing the Roth conversion in that plan? You would not go through the 401k (al...
by retiredjg
Wed Aug 15, 2018 9:27 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio experiment
Replies: 14
Views: 1705

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: 14
Views: 1705

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: 8
Views: 1125

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: 198

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: 12
Views: 1375

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: 331

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: 8
Views: 1125

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: 320

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: 10
Views: 424

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: 378

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: 1331

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: 1458

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: 581

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: 1550

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: 224

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: 224

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: 18
Views: 3521

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: 18
Views: 3521

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: 1331

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: 1331

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: 833

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: 432

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: 14
Views: 1705

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: 1331

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...