Search found 321 matches

by hawkfan55
Wed Jan 09, 2019 4:20 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5266

Re: BHers, what is your Roth IRA %?

In 1998, the first year Roth IRAs were made available, the maximum contribution was $2000 and there was not a catch-up provision for those 50 or older.
by hawkfan55
Wed Jan 09, 2019 4:11 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5266

Re: BHers, what is your Roth IRA %?

Ages 63 and 60. Both Retired within last couple years. 64.5% Deferred, 35% Roth. .5% in taxable We are doing Roth Conversions over the next 5-6 years before starting Social Security and using withdrawals from deferred accounts for expenses and paying taxes on the Roth Conversions. Other than maxing ...
by hawkfan55
Wed Jan 09, 2019 1:41 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5266

Re: BHers, what is your Roth IRA %?

is there an ideal % for the tax deferred balance when RMD starts in 10 years? There is not a standard "rule of thumb" for a percentage of your portfolio to be tax deferred. There is a mix of tax deferred, tax free (Roth) and taxable funds that would be ideal for each individual investor given their...
by hawkfan55
Thu Jan 03, 2019 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: Investment/retirement plan review - 5 years out
Replies: 7
Views: 1166

Re: Investment/retirement plan review - 5 years out

You might put your numbers into Optimal Retirement Planner, Extended Version. www.i-orp.com. You can model Roth Conversions, Taxes, SS at various ages, various withdrawal methods, etc. In many instances, when a couple has pensions and Social Security, Roth Conversions can make sense as eventually, l...
by hawkfan55
Thu Jan 03, 2019 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Nearing Retirement
Replies: 9
Views: 1100

Re: Portfolio Review Nearing Retirement

Emergency funds: Yes. 24 months cash It's good to have cash available for expenses and any large purchases or unplanned expenses. Only you can decide how much you feel comfortable having in reserve, however, you might be able to gain more return with short term bonds. Annual Expenses about 70K, not...
by hawkfan55
Sat Dec 29, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: How to calculate withdrawals for various decades of retirement
Replies: 10
Views: 580

Re: How to calculate withdrawals for various decades of retirement

I suggest using the Optimal Retirement Planner at www.i-orp.com. Use the Extended version. In addition to giving you year-by-year optimal spending strategies based on your inputs, it allows you to choose between five different spending strategies. I've copied the calculator's description of each bel...
by hawkfan55
Sat Dec 29, 2018 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Health Insurance Premium Tax Deductible?
Replies: 17
Views: 1743

Retiree Health Insurance Premium Tax Deductible?

Retired couple, ages 60 and 63. Buying Health Insurance through former employer at their cost, over $18,000 per year. Insurance is PPO and not considered high deductible. My understanding is we are not eligible for contributing to an HSA. Are the premiums tax deductible? Thank you.
by hawkfan55
Sat Dec 29, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions sought $3.5 M Net Worth
Replies: 76
Views: 8914

Re: Opinions sought $3.5 M Net Worth

Try www.i-orp.com. Use the Extended version. You'll be able to take possible Roth Conversions into account, Social Security variables, inflation, taxes, investing returns, etc. I've found Optimal Retirement Planner to be very useful for retirement planning purposes.
by hawkfan55
Fri Dec 28, 2018 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax Prices
Replies: 302
Views: 39328

Re: TurboTax Prices

Where can I find the TurboTax $10 coupon from Costco?
Thank you!
by hawkfan55
Tue Dec 25, 2018 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: As of 12/26, should I be in cash?
Replies: 17
Views: 3598

Re: As of 12/26, should I be in cash?

Click on the Wiki and start learning about investing like a Boglehead. Don't do anything until you determine an asset allocation you can sleep with for the long term. No one knows if the stock market will go up or down from here, however, over the long term, equity markets have historically increase...
by hawkfan55
Mon Dec 17, 2018 4:53 pm
Forum: Investing - Theory, News & General
Topic: Has anyone adjusted their stock allocation on the dip?
Replies: 71
Views: 5552

Re: Sell Sell Sell!

Retired 2 years and bought some of your stock today! :happy Keep selling and I'll keep buying!!!

Edit: Be sure to tell me when you start buying again so I can sell to you!!! :D
by hawkfan55
Sun Dec 16, 2018 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding SS Survivor Benefit?
Replies: 4
Views: 505

Understanding SS Survivor Benefit?

I have a quick question. Say a couple is in early 60s. If spouse A (larger amount) holds off on starting Social Security until 70 and Spouse B (smaller amount) starts SS at 62, if spouse A dies at age 75, does spouse B receive the full amount Spouse A was receiving (132% of A's PIA) or just A's PIA?...
by hawkfan55
Mon Dec 10, 2018 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Hurting Roth IRA
Replies: 16
Views: 1402

Re: Hurting Roth IRA

All Star Dan, Please "Stay the Course"! Your loss feels real but you've not lost unless you sell. Keep your commitment and understanding of market movements. When you are young, in your 20s, 30s, 40s... you want the market price to go down so you can buy more shares at a discount! You DO NOT want th...
by hawkfan55
Mon Dec 10, 2018 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion taxes- how to pay them?
Replies: 13
Views: 1374

Re: Roth conversion taxes- how to pay them?

Money is fungible. You could say taxes are coming from your rental income or from your annuity. Either way, sounds like you are going to need to withdraw the $92k from your annuity to have the money for your spending plans. However, I'm not sure how you would do that AND stay under the ACA cap? We a...
by hawkfan55
Sat Dec 08, 2018 8:02 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in 2 weeks, Traditional 401k
Replies: 99
Views: 7093

Re: Retiring in 2 weeks, Traditional 401k

After reading through many of the posts in this thread, I would like to recommend that the OP get a book from the library and read it. They should have the parents read it as well. The book is Jane Bryant Quinn's "How to Make Your Money Last." The book will give an excellent overview of all the thi...
by hawkfan55
Wed Dec 05, 2018 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Kansas 529 Savings Plan
Replies: 6
Views: 602

Re: Kansas 529 Savings Plan

From the Kansas Revenue Departments website... "You may reduce the amount of income you pay Kansas Income Tax on by the amount you contribute to the Learning Quest Education Savings Programs up to a maximum of $6,000 per student if you are married filing a joint return, and $3,000 per student for an...
by hawkfan55
Wed Dec 05, 2018 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Financially Able to Retire?
Replies: 21
Views: 3324

Re: Financially Able to Retire?

OP, I would recommend you use the Optimal Retirement Planner, extended version. It can be accessed at www.i-orp.com. This retirement calculator will help you answer some of your questions.
by hawkfan55
Wed Dec 05, 2018 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: Financially Able to Retire?
Replies: 21
Views: 3324

Re: Financially Able to Retire?

Having a pension is a huge plus. But I get a little scared about a few things and personally would take care of them or take them into consideration before retiring. Social Security: Have you factored in the expected drop in payments of 25% around 2035 that's pretty well cemented in? Health insuran...
by hawkfan55
Tue Nov 27, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Starting SS to cover Roth conversion tax
Replies: 19
Views: 1381

Re: Starting SS to cover Roth conversion tax

But money is fungible; it doesn't matter from where it comes. +1 I agree. If you have pensions, social security and a large tax deferred retirement account such as an IRA, 401k or 403b, Roth Conversions can make a lot of sense. If you pay the taxes on a Roth Conversion out of a taxable account, you...
by hawkfan55
Mon Nov 26, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion
Replies: 50
Views: 3251

Re: Roth Conversion

So before abandoning the idea of a conversion I wanted to see if I am missing anything. I am looking for general guidance here - do people convert when the tax brackets are the same before and after, and if so, why? Yes, this is beneficial if the conversion tax is paid from taxable funds, because i...
by hawkfan55
Sat Nov 17, 2018 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Are We In A Real Estate Bubble?
Replies: 114
Views: 14171

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: 7171

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: 9
Views: 1432

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: 9
Views: 1432

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: 7171

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: 7171

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: 7171

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: 7171

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: 7171

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: 25
Views: 2320

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: 528

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: 7155

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: 11108

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: 2845

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: 2617

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: 1352

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: 2845

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: 1352

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: 1352

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: 1352

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: 546

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: 546

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: 2190

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: 2190

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: 1498

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: 1928

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: 23
Views: 2482

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: 3070

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: 45
Views: 4679

Re: Retirees: Timing your withdrawals

DW and I are both retired within last couple years. We are doing Roth Conversions into the 22% federal tax bracket, keeping our MAGI under the $170k IRMAA cliff for MFJ. 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 yea...
by hawkfan55
Wed Aug 01, 2018 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement withdrawal strategy
Replies: 16
Views: 2333

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....