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dvd7e

My wife contacted her HR, and as it turns out, their insurance will only let us enroll my wife and the new baby as part of the Qualifying Life Event. So our other children and myself would not be able to switch to her Low Premium High Deductible plan. So it turns out a good amount of this conversati...

dvd7e

Specifically ask if this is even an option. Every year HR says we can change insurance for a qualifying event, but one year someone got them to clarify that we can only add and drop people, but not change the type of plan. I did explicitly ask HR, and yes, we are able to switch plans, as opposed to...

dvd7e

Hello, Normally over the past few years, including currently in 2020, we have health insurance through my wife's employer which is a Low Premium, High Deductible (LPHD) HSA plan. The effective annual premium is $2,300/yr, deductible is $5,000, and co-insurance is 20%. The health insurance through my...

dvd7e

If you fill more tax-deferred space and save taxes now, you run a greater risk of ending up with too much in tax-deferred accounts later. That can be remedied if one is able to retire early as you plan...you get to start doing Roth conversions early. This strikes me as an odd thing to say, I’m not ...

dvd7e

Other than a scenario where we may make A LOT more money to the point that we max out our MEGA Backdoor Roth space available and still have more left over and don’t know what to do with it, is there a conceivable scenario where it would make sense to participate in this nonqualified plan?

dvd7e

Sounds very similar to the 457 plans ... can you check whether the distributions will definitely commence once your wife leaves the employer, or she has the choice on WHEN to take the distributions? I’m pretty sure that it’s only *at* separation of service, not whenever you want sometime after sepa...

dvd7e

My wife recently became eligible to participate in a “Nonqualified Supplemental 401(k) plan” through her employer. There’s a 50+ page plan summary document that is difficult to cut through the legal mumbo jumbo, but after a few attempts I think I have the basic idea down. I have the raw information ...

dvd7e

I'd like to put together a simple monte carlo spreadsheet for portfolio return. And although modeling stock market returns as uncorrelated and perfectly gaussian is very easy to do and a decent first cut, it's not very representative of actual stock market returns. Does anyone know of a formula in G...

dvd7e

Not sure this helps, but have a look- https://www.experian.com/blogs/ask-experian/what-is-the-rule-of-55/ https://www.thebalance.com/what-is-the-rule-of-55-2894280 Paul I can't find any mention in those articles, or others online, of a requirement that you have to be in the plan for X years before ...

dvd7e

To take advantage of the "Age of 55" Rule and make penalty free withdrawals from your company 401k, are there requirements on tenure/service, e.g. you have to be in the plan for X years in order to be eligible? Or could I retire at say 50, live on taxable money for 5 years, and then at age...

dvd7e

My understanding is that to qualify for the of Rule of 55 in a given 401(k) offered by a given company, one must: [*] Be in the plan for at least 5 years (I have). I was not aware that the rule of 55 required that you had to be in the plan for at least 5 years. Is that an IRS rule, or something tha...

dvd7e

My Megacorp 401k offers the option to automatically convert After Tax contributions to their Roth 401k, which all things being equal, is easier than waiting for a non-trivial balance to accumulate and then having to manually initiate the MEGA Backdoor process to get the money into my Roth IRA. My qu...

dvd7e

As one of the above posters noted, the normal distribution may not be adequate to describe actual stock returns. You can propagate higher moments, but the equations get more and more complicated. That's probably why most people would switch to Monte Carlo at that point. Yes, the formulas for normal...

dvd7e

I’m wondering if there is an analytical formula for calculating the uncertainty (ie best case and worst case) of an investment given its mean return and standard deviation? (Assuming Gaussian distribution of returns.) And possibly taking into account annual contributions? There are closed form formu...

dvd7e

I have made a Roth contribution of some kind (either directly, or via backdoor) for at least the past ~10 years. I'm looking at how my tax preparer (who I have only been using for the past ~4-5 years) prep'ed my 2019 taxes, and I'm confused/concerned about the Roth IRA basis that is being reported o...

dvd7e

Most companies have a Rule of X (typically 85) where if your Age plus years of Service to the company exceeds that threshold then you get full or partial health benefits. I’m wondering if the service is prorated for part-time work or if you get full-time credit for the calculation. I’m sure this var...

dvd7e

OP check to see what your plans in service withdrawal rules are. My 401k plan allows for in service withdrawals of my in plan roth converted after tax contributions. So I can roll those fund over to my roth IRA while I am still employed and before 59.5. Yes, in service withdrawals are allowed. I ha...

dvd7e

I just found out my employers 401k (well it’s actually a 403b) offers the option to automatically transfer any after tax funds to their Roth 403b. This is certainly easier than moving it to a Roth IRA (where you have to wait until it’s a decent chunk of money, then make some phone calls, wait for a ...

dvd7e

If I would like to convert money from my Traditional to Roth incrementally over the years in order to minimize my future RMD down the road, what’s the best way to know how much available “headroom” I have in my current tax bracket before bumping into the next one? Is there a way that I can wait unti...

dvd7e

I think I know the answer to these already, but would like to confirm. 1) How is the dollar amount to withdraw in year 2 and onwards decided? If my withdrawal rate is 4% does that mean I withdraw 4% of my portfolio balance every year regardless of how high/low it is? Or do I take 4% of the first yea...

dvd7e

A little off topic, but now that you mention it...what’s the preferred strategy for HSAa when I actually have a qualified expense and am able to pay out of pocket: a) use the HSA or b) pay out of pocket, invest as much as I can and try to maximize the growth in that account? And should my allocatio...

dvd7e

Hi, OP: Try this calculator: www.i-orp.com. On this page, click the 'Extended ORP' tab, and have at it. This calculator takes taxes into account, and has a glide path option. The learning curve is long, but once you have it set up, it's easy to experiment with different retirement ages, savings amo...

dvd7e

I have used Monte Carlo simulations in my professional life and had decisions running into billions of $ based on those simulations. Yes, you do get surprises, but the decisions made almost always turn out sound. When used sensibly the simulations are great! But then you decided that you can predic...

dvd7e

On paper I would probably have enough to retire sooner, but to me the biggest constraints seem to be 1) access to funds in a retirement account and 2) health insurance. To address the first issue, I am saving some money in a taxable account to give me some flexibility. (And I'm aware of the Roth IR...

dvd7e

So first, I think you're doing great, keep it up! I think you're either a lot closer to the finish line than you realize or you will finish with a lot more than you realize. Either way, you're doing great. You seem pretty risk-adverse. One thought, price out a $60k annuity at your current age, in 2...

dvd7e

The financial calculators are fun, but they're only good for telling you if you're on track. There are no certainties. Markets are variable. You'll get there when you get there. The schedule will not be precise. At your savings rate and current asset value, you should get there sooner than 55. On p...

dvd7e

If you continue to be a decent saver and not a big spending I don't see how you won't make out ok unless there is a doomsday scenario. But if that happens how exactly do you think you could protect yourself? Well.....If your “doomsday” scenario is a long sequence of bad returns leading up to target...

dvd7e

Does anyone know of a tool that lets you have more dynamic/realistic “decision making” in a portfolio simultation? For example... * work until get 25-40x desired retirement income and then retire, rather than retire at a fixed age no matter what * Sprnd more/less in retirement if portfolio is partic...

dvd7e

I enjoy using online portfolio simulation tools like www.portfoliovisualizer.com and https://www.retirementsimulation.com/. But I entered some data for a scenario that is between conservative and realistic at this second site.....and it says that by the time I hit about 70 years old my portfolio wil...

dvd7e

If I exceed the $18500 limit on 401k contributions then they are automatically set to After Tax money. But if I plan on doing a MEGA backdoor Roth IRA and contribute a bunch of After Tax money, what happens if I miscalculate and accidentally exceed the 55k plan limit (including employer match $)? Wi...

dvd7e

Adding an 8% “tilt” to small value is not really a tilt at all. You’re probably better off putting that money in Total Market if you’re not willing to go at least 20-30% small value. If I were to reduce the portfolio down to the closest 3 fund equivalent by getting rid of the small caps, then the r...

dvd7e

In my opinion your asset allocation is within the range of what is reasonable. What I see as missing is own occupation disability insurance. Ahhh, yes, forgot that. The wife and I both have disability insurance at 2/3 of our current income, offered through our employers. The life insurance is from ...

dvd7e

In my opinion your asset allocation is within the range of what is reasonable. What I see as missing is own occupation disability insurance. Ahhh, yes, forgot that. The wife and I both have disability insurance at 2/3 of our current income, offered through our employers. The life insurance is from ...

dvd7e

Hi, I'm specifically wondering if the following is a reasonable Asset Allocation, but also more generally wondering if there's anything in our financial picture that looks like it could use some attention: 52% Vanguard Total Stock (VTSAX/VSMPX) 0.02% 18% Vanguard Total International Stock (VTIAX/VTS...

dvd7e

A few things that I suggest doing in this situation though; 2) Review your car insurance and umbrella policy to make sure that you have plenty of coverage. Now that you have more assets you are more likely to be sued. Why is this the case? If I get into an accident with someone, how do they know ho...

dvd7e

I agree with your interpretation of the limits. I would even suggest that a 457 would also have an additional separate limit. For high income employees of non profit organizations (aka doctors), this can be valuable. Of course, many plans have their own contribution limits as well (typically 25%) a...

dvd7e

Just curious..,. Is there anyone out there that has fully maxed out all tax advantaged accounts in a single year (assuming MFJ). Super high income (>300k/yr?) doesn’t count 18.5k 401k x2 Extra 5k/year for catchup contributions x2 Mega Backdoor Roth x2 Backdoor Roth 5.5k x2 IRA catch-up contribution...

dvd7e

Strange question if you rule out high income. $150K of savings requires substantial earnings. Ya, I figured someone who’s a big executive earning 600k/year, well it’s not that impressive or interesting that they max everything out. It wouldn’t necessarily take much discipline or sacrifice to do so,...

dvd7e

Just curious..,. Is there anyone out there that has fully maxed out all tax advantaged accounts in a single year (assuming MFJ). Super high income (>300k/yr?) doesn’t count 18.5k 401k x2 Extra 5k/year for catchup contributions x2 Mega Backdoor Roth x2 Backdoor Roth 5.5k x2 IRA catch-up contributions...

dvd7e

When doing a MEGA Backdoor Roth IRA, do you only convert the After-Tax Contributions to a Roth IRA, or Contributions & Earnings ? If the former then I assume there are no forms or anything I would have to do at tax time. But if the latter, then do I get a (1099?) saying what taxes I owe on the E...

dvd7e

I think they solidified the rules if you wait a certain amount of time after contributing to the Traditional before converting to Roth. But it’s unclear what that period is 1 month, 1 year, or longer. And you can’t explicitly tell your tax preparer that you are doing a backdoor What is your source ...

dvd7e

you should have been documenting the basis of the conversions on form 8606. what are you talking about? the recent laws have only solidified the backdoor rIRA. I think they solidified the rules if you wait a certain amount of time after contributing to the Traditional before converting to Roth. But...

dvd7e

I’m wondering if I have to diligently keep track of, and being able to “prove” via statements, what % of my money in my Roth IRA is a contribution vs conversion vs growth, and when and where it came from etc OR if Vanguard will automatically track this for me. Im in my early 30’s and has contributed...

dvd7e

whats your current marginal rate? most ppl are best suited to t401k + rIRA. for example, to reach the 32% bracket, one needs 8.6MM in taxable income. so once you get around there, then you may switch everything to Roth (or whatever your break even point is). so in summary, probably just do 100% t40...

dvd7e

So I know I the question of Traditional vs Roth is a loaded question with all sorts of caveats, subtleties etc and everyone has an opinion. I’m aware of that, sorry if this question has been discussed elsewhere. For reference, I urrently i split mine and my wife’s contributions 50/50 between the Tra...

dvd7e

The annual addition limit (2018 = $55K) applies separately to each individual. So your wife's limit(s) do not interfere with yours, but that does not mean you can triple your limit. They are her individual accounts. There is a separate annual addition limit for each unaffiliated employer. I think i...

dvd7e

Is the $54,000 total contribution limit (or whatever the exact amount is) to a tax advantaged plan on a per person, family, or account basis? My employer has 2 totally separate 403b accounts, one for my contributions and one for employer matching. I beliebe I can make after tax contributions and in ...

dvd7e

My parents are nearing the age where they will need to start taking Required Minimum Distributions (RMD) and it seems like they don’t need the money to live on, so they will likely just reinvest the money in a taxable account. They currently have their money in a Traditional IRA, Vanguard LifeStrate...

dvd7e

If they are readers, how about some good retirement books? How to make your money last Jane Bryant Quinn Bogleheads' Guide to Retirement Have they asked for your advice? They are "not old" according to me (old), and they have done well. :D Just last night I ordered Bogleheads' Guide to Re...

dvd7e

It is absolutely correct that if there is a risk here to be managed by reducing stock allocation, then that should be done now. I differ somewhat on the risk, however. At a 3% withdrawal rate, if that should come to pass, the risk to continued retirement income is not much more or even any more for...

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