Search found 138 matches

by marklearnsbogle
Mon Apr 08, 2019 8:10 am
Forum: Investing - Theory, News & General
Topic: Are annuities the best way to fund one's retirement?
Replies: 190
Views: 10596

Re: Are annuities the best way to fund one's retirement?

There is no "best way to fund one's retirement" Buying an annuity is part of my plan. I plan to buy a graded TIAA SPIA annuity on the day I retire. I might buy some more regular annuities later. Someone mentioned it is not a binary decision. But I think it is, and it is not. Once I buy an annuity I...
by marklearnsbogle
Wed Apr 03, 2019 8:27 am
Forum: Investing - Theory, News & General
Topic: Are annuities the best way to fund one's retirement?
Replies: 190
Views: 10596

Re: Our Two SPIAs (Single Premium Immediate Annuities)

IMO they are appropriate only for people with moderate retirement savings who are at risk of depleting their portfolios even WITH a SWR. Bogleheads: I agree that SPIA's (Single Premium Immediate Annuities) may be ideal for people who are at risk of depleting their portfolio. However, there is anoth...
by marklearnsbogle
Tue Apr 02, 2019 8:37 am
Forum: Investing - Theory, News & General
Topic: Are annuities the best way to fund one's retirement?
Replies: 190
Views: 10596

Are annuities the best way to fund one's retirement?

I agree, and obviously, none of this is "one size fits all." I am planning on purchasing a SPIA with the $ from my tIRA and 403(b), and alongside that my Roth, SS, and some DRIP investments. SS and a SPIA are steady, reliable streams of income, but I wouldn't limit my retirement to just those, if po...
by marklearnsbogle
Wed Mar 27, 2019 9:14 am
Forum: Investing - Theory, News & General
Topic: SWR and Social Security
Replies: 36
Views: 3783

SWR and Social Security

You may be interested in these two long and short publications from Stanford showing the delay SS strategy is often very good and easy to implement. There is strategy comparison too. http://longevity.stanford.edu/2017/11/29/optimizing-retirement-income-by-integrating-retirement-plans-iras-and-home-...
by marklearnsbogle
Tue Mar 26, 2019 8:48 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

401(k)/403(b) Conversion to Roth IRA

Just to be certain I understand you, what you are saying is : since 60 you've been able to move your 403(b) $, annually, into a tIRA. (My 403 (b) plan allows for this beginning at 59 1/2 - known as an in service withdrawal.) After stopping work, the plan is to then convert the tIRA to a Roth in a l...
by marklearnsbogle
Fri Nov 16, 2018 10:21 am
Forum: Investing - Theory, News & General
Topic: Annuities
Replies: 26
Views: 3291

Re: Annuities

So, the short of annuities: There's exactly one good annuity product. That's a single-premium immediate annuity. You pay money now, get money each month until you die. These are generally priced rather fairly considering the average life expectancy of annuitants as a group. There's a healthy compet...
by marklearnsbogle
Wed Oct 31, 2018 8:10 am
Forum: Investing - Theory, News & General
Topic: Why I'm NOT 100% stocks
Replies: 36
Views: 5479

Re: Why I'm NOT 100% stocks

I ignore the media hype about the MAJOR STOCK CRASH and am nonplussed that my hard earned $1M is now a paltry $325k.
Just to clarify, do you mean you are indifferent to the decreased value? (nonplussed refers to being speechless and perplexed.)
by marklearnsbogle
Mon Oct 22, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: Set it and forget it
Replies: 74
Views: 13683

Set it and forget it

" Once you have become enlightened to low-cost investing, and in particular broadly diversified index funds, select a stock and bond allocation for your needs, choose a few index funds to represent those broad asset classes (or a balanced fund that does it for you), implement the portfolio and go do...
by marklearnsbogle
Tue Oct 16, 2018 12:56 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 200
Views: 68383

Re: Vanguard's Wellesley Income fund is incredible

Wellesley (VWINX) is skating on the edge of breaking even this year, with a YTD return of .18%. Considering that most bond funds have just been treading water this year, at best, I don't think that's too bad. Will: pardon if this has already come up in this thread, but I was wondering to what degree...
by marklearnsbogle
Wed Oct 10, 2018 2:12 pm
Forum: Investing - Theory, News & General
Topic: VMRXX vs. VMFXX MM Funds - Preferences?
Replies: 3
Views: 649

Re: VMRXX vs. VMFXX MM Funds - Preferences?

[/quote] I use VMFXX for income withdrawals for 12 months at a time. I also have dividends and interest(taxable account) sent to the same fund. I take a monthly draw from the fund and find it easier to use one. If it was a pure emergency fund, I would use VMMXX for the additional interest. VMRXX tak...
by marklearnsbogle
Wed Oct 10, 2018 1:51 pm
Forum: Investing - Theory, News & General
Topic: VMRXX vs. VMFXX MM Funds - Preferences?
Replies: 3
Views: 649

VMRXX vs. VMFXX MM Funds - Preferences?

Just wondering if (and why) anyone has serious preferences for either VMRXX (Prime Money Market) or VMFXX (Federal Money Market); the object being an emergency savings account as opposed to a regular bank savings account.

Thanks, bogleheads!
by marklearnsbogle
Tue Oct 09, 2018 7:55 am
Forum: Investing - Theory, News & General
Topic: You know you’re a Boglehead when. . .
Replies: 44
Views: 5281

You know you’re a Boglehead when. . .

I just had to put this recent event that happened to me in my life. After 23 years at the same company, they outsourced several departments (including mine). The good news is I was hired by the outsourcing firm, but in 6 months will get a salary cut which I can live with. While most of my co-worker...
by marklearnsbogle
Thu Sep 20, 2018 11:53 am
Forum: Investing - Theory, News & General
Topic: 401k: Why not only after-tax?
Replies: 37
Views: 4384

Re: 401k: Why not only after-tax?

I have seen a number of threads where people are balancing pre-tax and after-tax in their 401K accounts. The bottom line: It is more efficient to use pre-tax if you expect to be in a lower tax bracket at withdrawal, it is more efficient to use after-tax if you expect to be in a higher tax bracket a...
by marklearnsbogle
Thu Sep 20, 2018 11:49 am
Forum: Investing - Theory, News & General
Topic: A really general question!
Replies: 9
Views: 866

Re: A really general question!

My all time favorite, the one I give to people if they act interested, is "The Little Book of Common Sense Investing" by Bogle ( https://www.amazon.com/Little-Book-Common-Sense-Investing/dp/0470102101 ). You can easily cruise through over a couple of days. It is short, simple to understand, and art...
by marklearnsbogle
Tue Sep 18, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: Money Market account in a Roth quick question
Replies: 6
Views: 529

Re: Money Market account in a Roth quick question

I have a small sum of cash I'd like park somewhere and leave it be/earn something; currently it's in my bank savings account not earning much interest. Two questions : If it's in a money market (VMFXX) in the Roth, is it subject to any taxation? I will be 59.5 in a few months, so I'm assuming after...
by marklearnsbogle
Tue Sep 18, 2018 1:00 pm
Forum: Investing - Theory, News & General
Topic: Money Market account in a Roth quick question
Replies: 6
Views: 529

Re: Money Market account in a Roth quick question

[/quote] Once money is in a Roth, it is never taxed again and it’s growth is never taxed again as long as you don’t take anything out of it for 5 years. The clock starts ticking when you make your first contribution to your first Roth. AFAIK I don’t think you even have to be a certain age to withdra...
by marklearnsbogle
Tue Sep 18, 2018 11:38 am
Forum: Investing - Theory, News & General
Topic: Money Market account in a Roth quick question
Replies: 6
Views: 529

Money Market account in a Roth quick question

I have a small sum of cash I'd like park somewhere and leave it be/earn something; currently it's in my bank savings account not earning much interest. Two questions : If it's in a money market (VMFXX) in the Roth, is it subject to any taxation? I will be 59.5 in a few months, so I'm assuming after ...
by marklearnsbogle
Thu Apr 05, 2018 5:33 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 979

Re: Roth IRA for inheritance (with a snag?)

Thank you all for this good information, delivered quickly to boot! NOW I understand that first and foremost, one needs to be converting from a tIRA or have earned income in order to do this. :oops: I didn't know. That's why this forum is so helpful. I've gone on a few junkets who hype Roth IRAs, b...
by marklearnsbogle
Thu Apr 05, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 979

Re: Roth IRA for inheritance (with a snag?)

but the account type that holds the investment needs to be a traditional IRA. At the risk of nitpicking, you can also Roth convert from tax deferred accounts other than actual trad IRA's (401a, 403b, ...). Thought about mentioning that but figured it would further confuse the issue :) But good poin...
by marklearnsbogle
Thu Apr 05, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 979

Roth IRA for inheritance (with a snag?)

Thank you all for this good information, delivered quickly to boot! NOW I understand that first and foremost, one needs to be converting from a tIRA or have earned income in order to do this. :oops: I didn't know. That's why this forum is so helpful.
by marklearnsbogle
Thu Apr 05, 2018 3:32 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 979

Re: Roth IRA for inheritance (with a snag?)

In this case, my mother would be converting money from a mutual fund investment. A mutual fund in a traditional IRA, or a mutual fund in a taxable brokerage account? You can only convert from a traditional IRA. What the money is invested in (mutual fund, bond, CD, savings) doesn't matter, but the a...
by marklearnsbogle
Thu Apr 05, 2018 3:20 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 979

Re: Roth IRA for inheritance (with a snag?)

it appears a Roth IRA can be inherited so long as the original holder has had the Roth for at least five years Where did you read about this requirement? Seems like you misinterpreted something. That's why you can't find any information about addressing this supposed snag. It's listed in The Roth R...
by marklearnsbogle
Thu Apr 05, 2018 3:08 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 979

Re: Roth IRA for inheritance (with a snag?)

it appears a Roth IRA can be inherited so long as the original holder has had the Roth for at least five years Where did you read about this requirement? Seems like you misinterpreted something. That's why you can't find any information about addressing this supposed snag. It's listed in The Roth R...
by marklearnsbogle
Thu Apr 05, 2018 3:05 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 979

Roth IRA for inheritance (with a snag?)

Thanks. Since posting the question I did discover that the Roth has to exist for five years, i.e. you inherit a Roth established two years prior. So long as you leave it for three more years, everything is tax-free on both the contributions and earnings. In other words you're correct on all counts! ...
by marklearnsbogle
Thu Apr 05, 2018 2:29 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 979

Roth IRA for inheritance (with a snag?)

Bogleheads, This question concerns my parent opening a Roth IRA for the purpose of inheritance. From what I have researched, it appears a Roth IRA can be inherited so long as the original holder has had the Roth for at least five years, and the beneficiary has been assigned. Although in excellent co...
by marklearnsbogle
Fri Mar 23, 2018 8:59 am
Forum: Investing - Theory, News & General
Topic: "Retire Secure for Same-Sex Couples" -- A Gem
Replies: 12
Views: 3542

"Retire Secure for Same-Sex Couples" -- A Gem

https://money.usnews.com/money/retireme ... d-strategy

the link above is a thorough, well written piece on changes in Social Security in addition to the change of Apply and Suspend.
by marklearnsbogle
Fri Mar 23, 2018 8:37 am
Forum: Investing - Theory, News & General
Topic: "Retire Secure for Same-Sex Couples" -- A Gem
Replies: 12
Views: 3542

"Retire Secure for Same-Sex Couples" -- A Gem

While the book is aimed at same-sex couples, it illustrates the benefits available to married couples, including in the context of retirement benefits and Social Security. The same benefits are, of course, available to opposite-sex married couples. Been reading Lange's book, and one of the more sig...
by marklearnsbogle
Fri Mar 16, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

401(k)/403(b) Conversion to Roth IRA

Just to be certain I understand you, what you are saying is : since 60 you've been able to move your 403(b) $, annually, into a tIRA. (My 403 (b) plan allows for this beginning at 59 1/2 - known as an in service withdrawal.) After stopping work, the plan is to then convert the tIRA to a Roth in a l...
by marklearnsbogle
Thu Mar 15, 2018 12:56 pm
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

401(k)/403(b) Conversion to Roth IRA

Thanks, Earl! Picking this up again from August. From what you're saying (and what I've researched in the meantime), one can go from say, a 403(b) (my plan allows in service withdrawals after 59.5) directly into a Roth. The tax implication then is the 403(b) pre-tax dollars amount is added to regul...
by marklearnsbogle
Thu Mar 15, 2018 10:43 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

401(k)/403(b) Conversion to Roth IRA

Thank you, thank you! (I did read that part but did not post it. :? And great thanks for that IRS form number. What if my whole universe of IRAs is just one Roth? That is it except for the 403(b) I would like to convert to a tIRA to then convert to a Roth. As you plan on partial conversions, you ca...
by marklearnsbogle
Wed Mar 14, 2018 11:15 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

401(k)/403(b) Conversion to Roth IRA

Age 60 is a "qualifying event" that let me roll an active VG 403b into an IRA. The only hiccup was I had to call to promote the individual funds to admiral after the transfer. Contributions are still going into the 403b so every year I roll the new balance into the IRA (for neatness AND admiral fee...
by marklearnsbogle
Fri Aug 18, 2017 8:29 am
Forum: Personal Investments
Topic: Roth 401K vs Traditional 401K
Replies: 25
Views: 4179

Re: Roth 401K vs Traditional 401K

My strategy is to put it ALL in traditional 401(k). Then when I got to a lower tax bracket in retirement, I did Roth conversions. I saved tens of thousands of dollars doing that. And the money I saved on taxes by contributing all to traditional 401(k) was used to contribute to Roth IRAs when they b...
by marklearnsbogle
Fri Aug 18, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

Re: 401(k)/403(b) Conversion to Roth IRA

What if my whole universe of IRAs is just one Roth? That is it except for the 403(b) I would like to convert to a tIRA to then convert to a Roth. More completely, anything with IRA in it's name that isn't a Roth IRA. Roths and employer plans like 401k, 403b, 457 don't enter into it. Got it. Then it...
by marklearnsbogle
Thu Aug 17, 2017 1:01 pm
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

Re: 401(k)/403(b) Conversion to Roth IRA

From Bogleheads Wiki : Yes, but be very careful! The deep pitfall in naively following this is that the tax calculation draws in your whole universe of tIRAs, not just the single empty IRA account you contribute too. The assets of all your tIRA/rollover IRA/SEP IRA/or SIMPLE IRA accounts in total i...
by marklearnsbogle
Thu Aug 17, 2017 9:43 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

Re: 401(k)/403(b) Conversion to Roth IRA

From Bogleheads Wiki : "To make a backdoor contribution, first make a regular contribution to a Traditional IRA with your IRA custodian. You do not specify to the custodian whether the IRA is deductible or not; it is just treated as an IRA. As soon as the contribution posts, convert to a Roth IRA. ...
by marklearnsbogle
Thu Aug 17, 2017 8:44 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

Re: 401(k)/403(b) Conversion to Roth IRA

Sorry, I wasn't clear. At 60 I could move the 403b money into a regular ira. It was a non-taxable event, from one tax-deferred account to another. That both accounts were VG made it friendlier but otherwise no different I think. I'm still working, maxing into that 403b every year, and making too mu...
by marklearnsbogle
Wed Aug 16, 2017 12:47 pm
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

Re: 401(k)/403(b) Conversion to Roth IRA

Also, is it possible to start yearly conversions while currently in a 401(k)/403(b)? It depends on your plan. My 401k has an IRR option (in plan Roth rollover). I use it annually to convert my after-tax subaccount to Roth, and I know it can be used for other subaccounts (e.g., pretax employee contr...
by marklearnsbogle
Wed Aug 16, 2017 9:34 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

Re: 401(k)/403(b) Conversion to Roth IRA

Age 60 is a "qualifying event" that let me roll an active VG 403b into an IRA. The only hiccup was I had to call to promote the individual funds to admiral after the transfer. Contributions are still going into the 403b so every year I roll the new balance into the IRA (for neatness AND admiral fee...
by marklearnsbogle
Wed Aug 16, 2017 7:53 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

Re: 401(k)/403(b) Conversion to Roth IRA

When you convert the TIRA to the ROTH IRA at vanguard, you will be given a choice on whether or not Vanguard should take out taxes. I believe that the default is 20%. If you can use outside funds, you likely may be better off. David Jay had some spreadsheet advice for me regarding how to determine ...
by marklearnsbogle
Wed Aug 16, 2017 7:51 am
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

401(k)/403(b) Conversion to Roth IRA

Many thanks for the responses. First off is the 59.5 years old (I am 58) requirement, and whether or not my plan even allows, which I will determine.
by marklearnsbogle
Tue Aug 15, 2017 1:00 pm
Forum: Investing - Theory, News & General
Topic: 401(k)/403(b) Conversion to Roth IRA
Replies: 29
Views: 4037

401(k)/403(b) Conversion to Roth IRA

Hello, all: I am researching the process of converting/rolling over a 401(k) to a Vanguard IRA, then converting to a Roth. While I understand it’s best to do the conversion over a number of years to keep the taxes manageable, I am having trouble finding more information of details of the timing and ...
by marklearnsbogle
Sat Aug 29, 2015 12:26 pm
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 157
Views: 21610

Re: Bogle: retirees should focus on dividends

Thank you, this is well written. IMHO, this is what Mr. B refers to when he says "stop paying attention to the silly stock market". The principal investment will go up and down over time (just like the value of a house) but the dividends will continue. . Except of course when the dividends don't co...
by marklearnsbogle
Fri Aug 28, 2015 4:53 pm
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 157
Views: 21610

Re: Bogle: retirees should focus on dividends

Yes, it adds-up the same. But. Dividend income is said to be more volatility wise stable than NAV is. -NAV may go up and down 10% over a period of time, while the dividend quarterly check can remain constant. As a retiree, this is my thinking exactly. To the extent one can live off of dividends (st...
by marklearnsbogle
Thu Aug 27, 2015 9:22 am
Forum: Investing - Theory, News & General
Topic: "What to do during market volatility? Perhaps nothing."
Replies: 5
Views: 1250

Re: "What to do during market volatility? Perhaps nothing."

If you're watching the recent market correction and wondering what to do, consider learning how to cope with volatility instead of changing your financial plan. Often, the wisest thing to do during periods of extreme market volatility is to stick with the investment plan that you've already devised...
by marklearnsbogle
Tue Aug 25, 2015 12:29 pm
Forum: Investing - Theory, News & General
Topic: 100% equities - my reasoning
Replies: 105
Views: 13103

Re: 100% equities - my reasoning

If you feel you need the validation of others to hold a high percentage of equities, it may not be right for you. Or are you looking for someone to talk you back from the ledge? Things have been looking pretty good the past couple years, if you have any doubt about what you're doing now, it will be...
by marklearnsbogle
Mon Aug 24, 2015 10:55 am
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 157
Views: 21610

Re: Bogle: retirees should focus on dividends

Obviously some folks (probably most) cannot live only on dividends and social security, so must sell shares of stock funds or bond funds to supplement distributions. This is why for most people total return and sequence of returns are what matter (unless they completely annuitize their portfolios, ...
by marklearnsbogle
Thu Aug 20, 2015 1:53 pm
Forum: Personal Investments
Topic: Dividend Growth Investing vs Three Fund Portfolio
Replies: 20
Views: 3099

Re: Dividend Growth Investing vs Three Fund Portfolio

Many thanks, dbr! It's an interesting strategy to contemplate. Also interesting to note that buying and holding a stock portfolio and taking only the dividends in retirement predates the index fund. This buying and holding forever and staying the course are tried and true for a reason.
by marklearnsbogle
Thu Aug 20, 2015 1:12 pm
Forum: Personal Investments
Topic: Dividend Growth Investing vs Three Fund Portfolio
Replies: 20
Views: 3099

Re: Dividend Growth Investing vs Three Fund Portfolio

Assuming total returns are the same, I would prefer the 3 fund portfolio since long term capital gains are taxed more favorably compared to dividends and the 3 fund portfolio is more diversified. If someone can prove that a dividend portfolio will out perform the 3 fund portfolio in terms of total ...
by marklearnsbogle
Thu Aug 20, 2015 12:16 pm
Forum: Personal Investments
Topic: Dividend Growth Investing vs Three Fund Portfolio
Replies: 20
Views: 3099

Dividend Growth Investing vs Three Fund Portfolio

I believe this is exactly true. Mr. Bogle has been known to say "don't look at the silly stock market", meaning just what you say, that dividends continue despite what the value of the fund. TSM looks to be a great investment if one is focused on dividends, or a DRIP (dividend reinvestment plan).