Search found 301 matches

by hawkfan55
Sat Nov 17, 2018 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Are We In A Real Estate Bubble?
Replies: 108
Views: 12481

Re: Are We In A Real Estate Bubble?

Thought BHs might enjoy reading this article from The New York Times... "Why the Housing Market Is Slumping Despite a Booming Economy" Home prices are out of reach relative to incomes and mortgage rates. The big question for the economy is how the imbalance adjusts. https://www.nytimes.com/2018/11/1...
by hawkfan55
Fri Nov 16, 2018 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6431

Re: Roth vs. Traditional 401k

From the information you provided, it's likely that max out traditional 401k is preferable. Then max out Roth IRA/back door Roth IRA and saving in taxable account. And this is a "good enough" solution. Most people would stop here. If you don't want to settle for "good enough", you will have to deve...
by hawkfan55
Mon Nov 12, 2018 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Decumulation phase of retirement: money market a safe place to park money needed over the next two years?
Replies: 8
Views: 1083

Re: Decumulation phase of retirement: money market a safe place to park money needed over the next two years?

This is true for federal taxes. It is only true for taxes for some states but not other states. Vanguard will not withhold for my state.
I stand corrected. My state mandates that Vanguard withhold 5% on all withdrawals. I do like that I can specify the amount of federal taxes withheld.
by hawkfan55
Sun Nov 11, 2018 10:36 pm
Forum: Investing - Help with Personal Investments
Topic: Decumulation phase of retirement: money market a safe place to park money needed over the next two years?
Replies: 8
Views: 1083

Re: Decumulation phase of retirement: money market a safe place to park money needed over the next two years?

Yes, Vanguard Prime Money Market is a safe place to park money needed over the next two years. My DW and I are retired and we set up automatic withdrawal from my Rollover IRA Prime Money Market Account each month into our checking account. You can also have federal/state taxes taken out from your wi...
by hawkfan55
Sun Nov 11, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6431

Re: Roth vs. Traditional 401k

General rule: Tax-deferred in peak earnings years and Roth in all other years. Be sure you're doing Backdoor Roth IRAs too. I agree with this advice as well. I feel strongly that tax diversification works for most situations and most retirees are glad to have both deferred and Roth accounts, or wis...
by hawkfan55
Sun Nov 11, 2018 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6431

Re: Roth vs. Traditional 401k

The OP states gross income of $225k (24% bracket) with anticipated income increasing 50-60k within the next 5 years (24% bracket). Given current tax law, in 2025 OP will have gross income of 275-285k (28-33% bracket). With high income and high savings, if OP maximizes only tax deferred accounts, thr...
by hawkfan55
Sat Nov 10, 2018 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6431

Re: Roth vs. Traditional 401k

Under Current Tax Law, you have the ability to place retirement savings in a Roth 401k at lower tax rates than you'll be paying in 2025 when tax brackets are scheduled to return to their 2017 brackets.Assuming either a) current tax brackets and rates will continue in place forever, or b) the 2017 t...
by hawkfan55
Sat Nov 10, 2018 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6431

Re: Roth vs. Traditional 401k

Under Current Tax Law, you have the ability to place retirement savings in a Roth 401k at lower tax rates than you'll be paying in 2025 when tax brackets are scheduled to return to their 2017 brackets. Something to consider. Table 2. Tax Brackets for Ordinary Income Under Current Law and the Tax Cut...
by hawkfan55
Sat Nov 10, 2018 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6431

Re: Roth vs. Traditional 401k

Roth 401k's are great for people who are or expect to be high earners and whose income in retirement will put them in a similar tax bracket or higher than during their working years. I would recommend you take full advantage of the Roth 401k options given your high income and expected higher earning...
by hawkfan55
Fri Nov 09, 2018 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: Bond alternative to balance portfolio?
Replies: 20
Views: 1699

Re: Bond alternative to balance portfolio?

When interest rates go significantly up, I can move from the Saving and CDs to bond funds then. When would that be? How will you know? The consensus right now is that "The Fed" is signaling a higher Fed Funds Rate and thus, interest rates are going up. Maybe or maybe not. I would think your plans f...
by hawkfan55
Wed Nov 07, 2018 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: Nearing Retirement - Bond Allocation Help
Replies: 4
Views: 511

Re: Nearing Retirement - Bond Allocation Help

Ages 63/60. Both Retired. Holding off on SS so currently withdrawing more than 4% from portfolio. We have an asset allocation of 45/55 Stock/Fixed Income. The BH wiki states..."Cash investments (includes Money Market Funds) are held by investors for a number of reasons, primarily as liquid emergency...
by hawkfan55
Fri Nov 02, 2018 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Is it a waste keeping money in a money market account?
Replies: 33
Views: 7029

Re: Is it a waste keeping money in a money market maccount?

I may need it within the next few years. Is this a suitable place to store this much money given my goals of buying property in the next few years?
Yes. A good money market fund like Vanguard Prime Money Market should fit the bill giving you maximum flexibility. :happy
by hawkfan55
Fri Nov 02, 2018 12:47 am
Forum: Investing - Help with Personal Investments
Topic: Panic set in... now what?
Replies: 63
Views: 10938

Re: Panic set in... now what?

MisterMister, First, welcome to the forum. Second, don't do anything until you've formulated a plan you trust and feel comfortable with. Bogleheads will be glad to give you their opinions on your plan. Third, make sure you read the first two posts by Laura on investing and asking questions. There's ...
by hawkfan55
Sun Oct 21, 2018 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Investing During Retirement
Replies: 20
Views: 2802

Re: Investing During Retirement

Helpmebogle, (1) Is the three-fund portfolio still my best option? A three fund portfolio may be right for you. Only you can decide after reading up on the benefits. An all-in-one fund may work for you as well. (2) If so, should I invest only in no transaction fee Fidelity funds? (3) If so, are the ...
by hawkfan55
Fri Oct 19, 2018 12:31 am
Forum: Investing - Help with Personal Investments
Topic: 2018 Income Tax Simulation
Replies: 11
Views: 2360

Re: 2018 Income Tax Simulation

Do you complete taxes yourself and use TurboTax? I do and use the past year's program to estimate the current year's taxes and plan withdrawals. Obviously, you'll have to make adjustments to eliminate personal exemptions, account for standard exemptions, etc. It can be done. It's not hard to then fi...
by hawkfan55
Wed Oct 17, 2018 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Fixed Income Allocation in Early Retirement
Replies: 7
Views: 1314

Re: Help with Fixed Income Allocation in Early Retirement

For near-term spending, converting bonds to Vanguard Prime is more tempting to me at 2.2% now than the risks of negative returns from bond funds. I remember back in the late 1980s, thinking a short-term bond fund would be a sort of supercharged savings account, and it was traumatic to see my saving...
by hawkfan55
Tue Oct 16, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Investing During Retirement
Replies: 20
Views: 2802

Re: Investing During Retirement

Welcome to the forum John! You'll find lots of people willing to help. My wife and I are newly retired within the past couple years. I've learned so much with the forum and am able to help others as well. You will get more specific, usable advice if you post your situation as described by the "Askin...
by hawkfan55
Tue Oct 16, 2018 10:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Fixed Income Allocation in Early Retirement
Replies: 7
Views: 1314

Re: Help with Fixed Income Allocation in Early Retirement

In my opinion, when you make your "withdrawals" is not important. When you will actually spend the money is. It appears you do not need most of these withdrawals for expenses at the moment (hence the Roth conversions). Your bond allocation/duration should correspond to when you will spend the funds...
by hawkfan55
Tue Oct 16, 2018 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Fixed Income Allocation in Early Retirement
Replies: 7
Views: 1314

Re: Help with Fixed Income Allocation in Early Retirement

Peter and Ralph, thank you for your replies! Given the current interest rate environment and the fact that you are starting withdrawals, I would favor shorter term and intermediate term bond funds over total bond market. I thought Total Bond Market was an intermediate term bond fund? Would you move ...
by hawkfan55
Mon Oct 15, 2018 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Fixed Income Allocation in Early Retirement
Replies: 7
Views: 1314

Help with Fixed Income Allocation in Early Retirement

We are trying to decide how best to position our fixed income retirement savings. Questions below. Here's our situation. Me: 63 DW: 59 Both Retired. I am holding off taking SS until at least FRA,34k. DW will most likely start her SS payments at age 62, 16k. Planned Withdrawals below assume SS begins...
by hawkfan55
Sat Sep 29, 2018 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Does it make sense to purchase PERS Service Credit?
Replies: 3
Views: 539

Re: Should we purchase PERS Service Credit?

I think your comparison is faulty. It's not a fair comparison to compare 4% of $12,079 to an increase in pension that pays out like an annuity, instead of 4% a year. And you are assuming the $12,079 will not grow more than the yearly payout. And the fact that the pension is not COLAed is troubling....
by hawkfan55
Sat Sep 29, 2018 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Does it make sense to purchase PERS Service Credit?
Replies: 3
Views: 539

Does it make sense to purchase PERS Service Credit?

DW, age 59 is a newly retired teacher and receiving her Public Employee Retirement System (PERS) pension. She is able to purchase three quarters of service for $12,079.66 which will increase her monthly benefit by $84.07 per month or $1,008.84/yr. Her benefit is not COLA'ed. The purchase can be made...
by hawkfan55
Wed Sep 26, 2018 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Pension vs 401k, help
Replies: 31
Views: 2159

Re: Pension vs 401k, help

Florida's Pension Plan is very well funded at 86% of obligations. Anything above 80% is considered well funded.
by hawkfan55
Wed Sep 26, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Pension vs 401k, help
Replies: 31
Views: 2159

Re: Pension vs 401k, help

I would recommend you consider staying in your current position AND contribute the maximum to a deferred account, 403b, etc. each year so that you maximize both your pension and savings. Perhaps you are already doing this? Are you able to purchase service credits? Many state employees can use pre-ta...
by hawkfan55
Wed Sep 12, 2018 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Flipping a home Resident Physician flipping a home while in debt? help me weigh my pros and cons
Replies: 21
Views: 1460

Re: Flipping a home Resident Physician flipping a home while in debt? help me weigh my pros and cons

I would highly recommend you focus on your priorities, spouse and residency. Residency can be very time consuming. Renting for what you consider "a great deal" is ideal. You won't have to pay real estate taxes. Not buying a property now will give you more flexibility when fielding offers as to where...
by hawkfan55
Wed Sep 12, 2018 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversions when we will be in 22% bracket for indefinite future
Replies: 16
Views: 1877

Re: Roth conversions when we will be in 22% bracket for indefinite future

Try www.i-orp.com. Use the Extended Version of the Optimal Retirement Planner. We are doing Roth Conversions up to MAGI $170k, the IRMAA threshold for MFJ where additional Medicare surcharges/premiums are not required. I do want to try to protect my DW from the "filing single" tax burden in the even...
by hawkfan55
Mon Aug 27, 2018 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Social Security question
Replies: 14
Views: 1531

Re: Social Security question

Thanks. I am unsure what they will do now.
Hopefully, not start SS now but wait till FRA, assuming good health.
by hawkfan55
Wed Aug 22, 2018 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Investing monthly Social Security payments
Replies: 33
Views: 3043

Re: Investing monthly Social Security payments

A couple thoughts... To have that much money in Vanguard's Prime Money Market is putting yourself at risk of loss because of inflation. I agree with others that it would be best for you and your spouse to wait until at least FRA to start Social Security.
by hawkfan55
Mon Aug 20, 2018 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Retirees: Timing your withdrawals
Replies: 40
Views: 3840

Re: Retirees: Timing your withdrawals

DW and I are both retired within last couple years. We are doing Roth Conversions up to the top of 22% federal tax bracket. We complete taxes using Turbo Tax so have a pretty good handle on the following year's taxes by June. During the first half of year, we do our Roth Conversions and withdraw nee...
by hawkfan55
Wed Aug 01, 2018 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement withdrawal strategy
Replies: 16
Views: 2306

Re: Early retirement withdrawal strategy

I've found Optimal Retirement Planner to be an excellent tool in planning optimal retirement spending. Obviously, you should not rely solely on any retirement calculator that requires the user to input information... "garbage in, garbage out". I understand Bigfoot's RPM calculator is also excellent....
by hawkfan55
Wed Aug 01, 2018 10:54 am
Forum: Investing - Help with Personal Investments
Topic: Is maxing Out an IRA, 403B, and 457B Along with a Pension Too Much Saving for the Future?
Replies: 19
Views: 2408

Re: Is maxing Out an IRA, 403B, and 457B Along with a Pension Too Much Saving for the Future?

I do not think you are saving too much. Are you teachers? Do you contribute to Social Security? If you do not, you will be glad you saved for retirement on your own. Saving in a mixture of Tax Deferred and Roth accounts will be of benefit to you in the future. I would max out deferred and Roth accou...
by hawkfan55
Wed Aug 01, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Early retirement withdrawal strategy
Replies: 16
Views: 2306

Re: Early retirement withdrawal strategy

Wenonah, the following inputs may be of assistance to you in filling out the I-ORP Extended Version form. These are the inputs I used to reach the conclusions in my earlier post. I made some assumptions that you will want to change to fit your actual situation. I assumed you and spouse would have ea...
by hawkfan55
Tue Jul 31, 2018 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie enlightened by Bogleheads
Replies: 23
Views: 3261

Re: Newbie enlightened by Bogleheads

Very difficult to predict interest rate movements. I use bond funds as part of my fixed income allocation. Since we are retired, ages 63 and 59, and need to draw from the total returns of our portfolio, I use Prime Money Market for distributions planned within the next 6 months, short term bond fund...
by hawkfan55
Tue Jul 31, 2018 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement withdrawal strategy
Replies: 16
Views: 2306

Re: Early retirement withdrawal strategy

I would highly recommend you use the Optimal Retirement Planner, www.i-orp.com, Extended Version to determine your optimal retirement income strategy. I took your information and came up with a projected, maximum annual disposable income, after taxes of approx. $82,000 per year in today's dollars. T...
by hawkfan55
Mon Jul 30, 2018 11:40 pm
Forum: Investing - Help with Personal Investments
Topic: 7-8% SWR/year for first 7 years of Retirement...am I good?
Replies: 22
Views: 2754

Re: 7-8% SWR/year for first 7 years of Retirement...am I good?

Another resource for you would be the Optimal Retirement Planner, www.i-orp.com Use the Extended Version and determine your optimal spending amounts. If you know your expenses, you'll be able to have a good idea if your portfolio and income sources will support your planned retirement. We are withdr...
by hawkfan55
Mon Jul 30, 2018 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Making My Dad A Portfolio.
Replies: 8
Views: 579

Re: Making My Dad A Portfolio.

So I moved my Roth-IRA from Edward Jones over to Vanguard at the start of this year (2018). I talked to my Dad today and he said he was thinking about moving over to Vanguard as well to reduce his fee's. I thought about: If I had as much money as he does in his IRA, how would I allocate that in a p...
by hawkfan55
Mon Jul 30, 2018 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie enlightened by Bogleheads
Replies: 23
Views: 3261

Re: Newbie burned by bonds

Bonds should be a component of most asset allocations, especially for someone 54 years old. Typically, bonds do not suffer the extreme drops that the stock market does. You should look at your portfolio as a whole, reallocating if necessary to keep your chosen AA. I suggest you look at the wiki to l...
by hawkfan55
Sun Jul 29, 2018 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: 7-8% SWR/year for first 7 years of Retirement...am I good?
Replies: 22
Views: 2754

Re: 7-8% SWR/year for first 7 years of Retirement...am I good?

Pulling 6% from total portfolio during first five years of retirement. Waiting on small pension and SS for DW and me before cutting back on our SWR. :D
by hawkfan55
Sun Jul 22, 2018 1:01 am
Forum: Investing - Help with Personal Investments
Topic: Pension Lump Sum: Short-term bonds?
Replies: 37
Views: 2197

Re: Pension Lump Sum: Short-term bonds?

For example - Extreme uncertainty in so many areas as the county that seems to have lost its collective mind, led by a chaotic government and leader that lurch from one bad decision to another. Despite somewhat agreement in this statement, we are not allowed to express this type of sentiment on thi...
by hawkfan55
Thu Jul 19, 2018 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on investing Roth IRA
Replies: 7
Views: 729

Re: Opinions on investing Roth IRA

As conservative investors, we plan to move the 401K to bond mutual funds and CDs, and the Roth IRAs plus after-tax portion of the 401K to an aggressive 100% stock fund. I believe we can live with the ups and downs of the stock fund since we do not plan to touch the Roths for a long time, if ever. D...
by hawkfan55
Thu Jul 19, 2018 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on investing Roth IRA
Replies: 7
Views: 729

Re: Opinions on investing Roth IRA

The only gotcha with a Roth conversion is the impact it has on AGI and the IRMAA medicare premium. Not doing Roth Conversions could result in RMDs placing one in an unintended tax bracket or higher IRMAA. Also, doing Roth Conversions while MFJ could be very beneficial vs a surviving spouse filing a...
by hawkfan55
Tue Jul 17, 2018 11:13 pm
Forum: Investing - Help with Personal Investments
Topic: Heresy: Is It Worth Converting tIRAs to Roth?
Replies: 46
Views: 4768

Re: Heresy: Is It Worth Converting tIRAs to Roth?

I would recommend using www.i-orp.com , Extended Version. It will allow you to see if Roth Conversions will benefit you and give you tax information as well. Since I'm a few years older than my DW, odds are she will outlive me and face taxes as a single taxpayer. We are both retired, doing Roth Conv...
by hawkfan55
Sat Jul 07, 2018 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Should we contribute to Roth 403b?
Replies: 4
Views: 378

Re: Should we contribute to Roth 403b?

I would be inclined to use the Roth 403b and to consider doing Roth Conversions up to the top of the 24% tax bracket beginning this year. With the passage of the Tax Cuts Act, brackets, thresholds and rates have changed in 2018. Filing MFJ, you can have taxable income of $314,999 and still stay in t...
by hawkfan55
Mon Jun 18, 2018 11:08 am
Forum: Investing - Help with Personal Investments
Topic: I feel like selling my 3 fund
Replies: 57
Views: 8207

Re: I feel like selling my 3 fund

Unread post by Sandtrap » Mon Jun 18, 2018 10:02 am Education, information, and understanding, are the enemies of impulse. The word, "feel", does not have a place in investment finance. Read, read, read. Outstanding write up on the 64/40 allocation by Bernstein. http://web.archive.org/web/20061214...
by hawkfan55
Fri Jun 15, 2018 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 505
Views: 114110

Re: Anyone regret paying off mortgage early?

Paid off home early that we raised our family in... felt great and enjoyed not having a payment for about six years. Then, after living in that home for 24 years, decided to build a new home. Took sale proceeds from our paid off home and applied them towards our newly built home. Also took out a 15 ...
by hawkfan55
Fri Jun 15, 2018 12:55 am
Forum: Personal Finance (Not Investing)
Topic: ~1 year from FIRE - Tax diversification strategy?
Replies: 25
Views: 3335

Re: ~1 year from FIRE - Tax diversification strategy?

I would recommend the Optimal Retirement Planner, i-orp.com. Use the Extended Version for best results.
by hawkfan55
Fri Jun 15, 2018 12:37 am
Forum: Personal Finance (Not Investing)
Topic: add to DW 401k while withdrawing from (self) 403b?
Replies: 19
Views: 979

Re: add to DW 401k while withdrawing from (self) 403b?

I've been retired for 1.5 years and withdrawing from my Rollover IRA account while my DW contributes the max to her deferred 403b plan. We liked the Stable Value plan she invests in and she is four years younger so RMDs won't start as soon as mine.
by hawkfan55
Tue Jun 12, 2018 12:24 am
Forum: Investing - Help with Personal Investments
Topic: MD&P just purchased X / sold Y [md&pharmacist]
Replies: 198
Views: 13393

Re: MD&P just purchased X / sold Y [md&pharmacist]

While I appreciate the warning at the top of this post, I honestly do not understand why this opposing point of view is welcome here. There is a set of Boglehead principles: https://www.bogleheads.org/wiki/Boglehe ... philosophy While there are many financial issues that forum members can disagree ...
by hawkfan55
Sun Jun 10, 2018 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall advice for an overwhelmed person
Replies: 76
Views: 6764

Re: Is Bogleheads not right for me? Trying to generate monthly income before retirement

"So the question becomes, is it worth it to gamble on being able to pay down the line over 5 years, or, just pay down everything now in cash?"
Pay down everything now in cash. You can lead a horse to water but you can't force it to drink... good luck!
by hawkfan55
Wed May 30, 2018 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Can we retire in 2018?
Replies: 103
Views: 9161

Re: Can we retire in 2018?

I agree with most replies that retirement would be tight. You could probably do it but with the realization that you may need to return to work if market returns or social program changes dictate needs for more income. You need to seriously consider your expenses and your willingness to adjust your ...