Search found 47 matches

by dvd7e
Tue Oct 17, 2017 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

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 Retirement a...
by dvd7e
Tue Oct 17, 2017 9:30 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

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...
by dvd7e
Tue Oct 17, 2017 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

He is not 100% stocks. He has $300K in money market, out of $2.3M invested. That's maybe 87/13. Maybe he's 90/10 if you count his rental real estate. What part of this is he unhappy with? You said he wanted to be 100% stocks for maximum growth. No, the CPA probably can't help him with investment ad...
by dvd7e
Tue Oct 17, 2017 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

[/quote] 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 ...
by dvd7e
Tue Oct 17, 2017 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

Has he considered making Roth contributions ($6.5K) each with some of the $ he is currently earning even if he would need to withdraw like amount from his IRA for living expenses? It seems like they are in the 15% tax bracket now with $70K income and would still have room for some Roth conversions ...
by dvd7e
Tue Oct 17, 2017 7:39 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

Maybe try to talk him into putting half of the stock investments in CDs? What kind of stocks does he have? If they're conservative stocks that won't disappear in a bear market, what's the worry? It sounds like he's got some revenue stream with real estate and a pension and medical care to boot. May...
by dvd7e
Tue Oct 17, 2017 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

All of Vanguard's Target Date funds end up with a 25/75 split in late retirement, which typically assume that the investor needs that money to live on. That may not be a good assumption in this case. Take a look at VG (or others) Life Strategy (Target Risk) Funds. They have fixed asset allocations ...
by dvd7e
Tue Oct 17, 2017 7:23 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

Fees are 0.14%. That is very low, and you don't have to get involved with choosing funds, figuring out asset allocations, rebalancing, glidepaths, etc. etc. All that is taken care of for him (and you) ... Use above target funds and this is taken care of. Target Date funds are a good idea, and we'll...
by dvd7e
Tue Oct 17, 2017 7:01 am
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Re: Help w/ parents investments

Fees are 0.14%. That is very low, and you don't have to get involved with choosing funds, figuring out asset allocations, rebalancing, glidepaths, etc. etc. All that is taken care of for him (and you) ... Use above target funds and this is taken care of. Target Date funds are a good idea, and we'll...
by dvd7e
Mon Oct 16, 2017 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 858

Help w/ parents investments

Hi, I'm a big believer in the general Bogleheads philosophy (e.g. passive index funds with low expense ratios etc) and I talked to my Dad recently just to see where his financial situation stood, and I was a little shocked to hear that he was paying a financial manager 1% of his assets annually to "...
by dvd7e
Sat Oct 07, 2017 7:07 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1305

Re: Roth vs. Traditional for RMD's & Tax Diversification

(Roth legislation isn't really worth talking about as it is speculation and would get this wonderful thread locked, I shouldn't have mentioned it. Apologies.)
I guess I’m just ignorant on this one....why is this topic off limits?
by dvd7e
Sat Oct 07, 2017 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1305

Re: Roth vs. Traditional for RMD's & Tax Diversification

As to retiring in early 40's, yeah, I guess so, but it is just hard for me to get my arms around anybody really wanting to do that. There are so many things that could happen that could turn that into a very risky scenario - prolonged market crashes (Japan), legislation unfavorable to retirement sa...
by dvd7e
Fri Oct 06, 2017 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1305

Re: Roth vs. Traditional for RMD's & Tax Diversification

I had been splitting *my* (as opposed to my Employer's match) 401k contributions 50/50 between Traditional 401(k) and Roth 401(k) for tax diversification and because of potential for RMDs (Required Minimum Distributions) I might lean more towards the Roth. Of the total contributions going into the ...
by dvd7e
Fri Oct 06, 2017 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1305

Re: Roth vs. Traditional for RMD's & Tax Diversification

OP, 1) What is your annual expense? 2) What is your number for early retirement? 3) Why do you think that you will have an RMD problem at 70 1/2 years old if you early retire at 56 years old? 4) Would you retire at 45 years old if you reach your number? KlangFool These are good questions that I see...
by dvd7e
Fri Oct 06, 2017 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1305

Re: Roth vs. Traditional for RMD's & Tax Diversification

Should I be splitting my my 401k contributions 50/50 between Traditional and Roth, or contribute 100% to Roth? I had been splitting *my* (as opposed to my Employer's match) 401k contributions 50/50 between Traditional 401(k) and Roth 401(k) for tax diversification and because of potential for RMDs ...
by dvd7e
Fri Oct 06, 2017 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1305

Roth vs. Traditional for RMD's & Tax Diversification

Should I be splitting my my 401k contributions 50/50 between Traditional and Roth, or contribute 100% to Roth? I had been splitting *my* (as opposed to my Employer's match) 401k contributions 50/50 between Traditional 401(k) and Roth 401(k) for tax diversification and because of potential for RMDs (...
by dvd7e
Sat Sep 30, 2017 3:56 pm
Forum: Investing - Theory, News & General
Topic: Confused about Taxable Returns
Replies: 9
Views: 1114

Re: Confused about Taxable Returns

Might be an impossible question to answer, but ROUGHLY how much of a mutual fund's return is due to appreciation (unrealized capital gain, so no immediate tax implications if dont sell) vs dividend (assume it's Qualified, so taxed at capital gain rate, but taxes due that year for a taxable account)?...
by dvd7e
Sat Sep 30, 2017 3:48 pm
Forum: Investing - Theory, News & General
Topic: Confused about Taxable Returns
Replies: 9
Views: 1114

Re: Confused about Taxable Returns

I think something your last post is missing is that you can't not realize distributions. Capital gains can stay unrealized until you die, but dividends will be taxed in the year they are distributed. An after-tax 401k is NOT taxed on those distributions year-to-year, but yes all of the gains are ta...
by dvd7e
Sat Sep 30, 2017 1:12 pm
Forum: Investing - Theory, News & General
Topic: Confused about Taxable Returns
Replies: 9
Views: 1114

Re: Confused about Taxable Returns

This is wrong. Unrealized gains are not taxed at all. You might have dividends, interest, or capital gains distributions which could be taxed at 0%, 15%, or 28% or whatever tax rate depending on whether they are qualified dividends or long or short capital gains distributions. Only capital gains th...
by dvd7e
Sat Sep 30, 2017 9:02 am
Forum: Investing - Theory, News & General
Topic: Confused about Taxable Returns
Replies: 9
Views: 1114

Confused about Taxable Returns

I'm confused about how taxes work on dividends and appreciation in a taxable account. As a simple example, let's say capital gains is 15%, current marginal tax rate is 28%, you start with a $10,000 balance with no future contributions, and you are comparing performance of the same underlying investm...
by dvd7e
Mon Aug 03, 2015 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding ACH overdraft fees
Replies: 7
Views: 962

Re: Avoiding ACH overdraft fees

Overdraft fees come into play when your balance drops below zero right? If you're getting close to zero on your checking account, you're cutting things too close. Do you have an emergency fund of say 6 months expenses? If yes, why not keep part of your emergency fund in your checking account, perha...
by dvd7e
Sun Aug 02, 2015 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding ACH overdraft fees
Replies: 7
Views: 962

Avoiding ACH overdraft fees

I want to setup an automatic ACH withdrawal from my bank account to make monthly contributions to a 529 account, but want to have the option to only contribute if my balance is above a certain threshold. Does this exist, that anyone knows of? The problem is that I'm aggressively investing other acco...
by dvd7e
Wed Jul 29, 2015 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Asset Allocation
Replies: 8
Views: 835

HSA Asset Allocation

I was hoping to get an idea of how people in this forum view their time horizon/set their asset allocation when investing in their HSA. I'm about 30 yrs old now, married, both in good health. So should I.... a) invest conservatively (short time horizon, <5 years) and use the money for health expense...
by dvd7e
Thu May 07, 2015 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Keeping Track of Cost Basis
Replies: 4
Views: 536

Re: Keeping Track of Cost Basis

Thanks for the advice.

A copy of my tax filing *should* have all the information that I would need, right? Sorry for my tax naivete, my spouse generally handles all of that, but my tax filing would include all the 1099 and 8606 forms etc if I needed them many years down the road, right?
by dvd7e
Thu May 07, 2015 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Keeping Track of Cost Basis
Replies: 4
Views: 536

Keeping Track of Cost Basis

Over the past few years (and in the future I plan on doing again), all of the following: a) contributed directly to my Roth IRA b) done a "normal" backdoor Traditional IRA to Roth IRA conversion, and c) a "Mega" backdoor direct rollover, e.g. a direct rollover of After Tax money ...
by dvd7e
Wed May 06, 2015 7:35 am
Forum: Investing - Help with Personal Investments
Topic: 8606 required for MEGA Backdoor?
Replies: 2
Views: 414

8606 required for MEGA Backdoor?

1) As I understand it, if you do a "normal" backdoor Roth IRA conversion (e.g. Traditional IRA to Roth IRA) then you need to fill out form 8606. I'm wondering if you need to fill out Form 8606 if doing a "Mega" backdoor Roth IRA conversion, e.g. After Tax money in a 401k to a Rot...
by dvd7e
Sun Jan 04, 2015 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Mega back door Roth IRA
Replies: 5
Views: 1346

Mega back door Roth IRA

I know there's a couple of threads already on the mega back door Roth IRA, but I couldn't find the answers to my questions, so I apologize if this has already been answered. 1) Should I keep my after-tax contributions that are awaiting rollover in a money market fund (to avoid paying taxes on earnin...
by dvd7e
Sat Jan 03, 2015 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing via contributions
Replies: 19
Views: 2143

Re: Rebalancing via contributions

Does anyone know of any good tools that will figure out what contribution %'s to use to continually seek your ideal asset allocation across accounts? (Other than breaking out an excel spreadsheet and manually doing it every pay period)
by dvd7e
Sat Jan 03, 2015 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Small cap tilt
Replies: 8
Views: 890

Re: Small cap tilt

if it were me, i'd just reduce your equities exposure equally among all your holdings, rather than have a specific "small cap glidepath". Good point, didn't consider that. Is this a reasonable Large Cap to Small Cap ratio and M*XRAY allocation then?....I just want to avoid over tilting wi...
by dvd7e
Sat Jan 03, 2015 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Small cap tilt
Replies: 8
Views: 890

Small cap tilt

I more or less have a 3 fund portfolio with vanguard (total US, total Intn'l, total bond) but I'm in my late 20's and somewhat risk tolerant so decided to add a small cap tilt (both domestic and international). I think the sum of my small cap allocation Morningstar box is like 15% vs total world all...
by dvd7e
Fri Jan 02, 2015 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing via contributions
Replies: 19
Views: 2143

Rebalancing via contributions

Hello, I've read that rebalancing too frequently can be detrimental to performance. I'm wondering if the same logic applies if I'm rebalancing via contributions. I have a 401k that I'm primarily contributing to, and an IRA which I can't contribute nearly as much to. I have taken the "Portfolio ...
by dvd7e
Thu Dec 25, 2014 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: After tax [401k or taxable after max out deferred]?
Replies: 6
Views: 894

After tax [401k or taxable after max out deferred]?

If ive maxed out my 401k and IRA contributions and want to make further retirement savings contributions, am I better off contributing after tax to my 401k or contributing to a taxable account (ignoring investment options available and pre retirement withdrawal)? I guess I don't fully understand how...
by dvd7e
Mon Dec 15, 2014 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar Cost Averaging with commission free ETFs
Replies: 2
Views: 559

Dollar Cost Averaging with commission free ETFs

I know a lot of ETF's have a commission fee per trade, making them (potentially) an unattractive option for dollar cost averaging, or frequent investments of small sums of money. But if you have access to commission free ETFs, does that concern completely go away? I'd like to include an ETF in my IR...
by dvd7e
Sun Dec 14, 2014 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a reasonable asset allocation?
Replies: 14
Views: 1494

Re: Is this a reasonable asset allocation?

Whether the AA is reasonable depends on what the AA is. Your original post provided one morningstar stylebox and a subsequent response provided a very different one. Perhaps you could indicate what the actual morningstar stylebox really is. Did you actually provide an actual target AA as opposed to...
by dvd7e
Sat Dec 13, 2014 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a reasonable asset allocation?
Replies: 14
Views: 1494

Re: Is this a reasonable asset allocation?

Also, there's no point underweighting large-cap only for the sake of overweighting mid-cap, in my view. Your base should be market weights, and if you want to tilt most would recommend tilting to small value . Specifically small-cap value , as opposed to just small cap? (e.g. VISVX versus VSMAX, fo...
by dvd7e
Sat Dec 13, 2014 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a reasonable asset allocation?
Replies: 14
Views: 1494

Re: Is this a reasonable asset allocation?

Your style box is only marginally different from market weights, so if that's what you are aiming for then why not replace all those domestic funds with Total Stock Market? Much simpler to track and maintain. If I were to replace the 3 Large/Medium/Small cap domestic funds with the Total Stock Mark...
by dvd7e
Sat Dec 13, 2014 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a reasonable asset allocation?
Replies: 14
Views: 1494

Re: Is this a reasonable asset allocation?

Why do you feel this is better than a simpler portfolio of: ((These are the Admiral level accounts with minimum balances)) Total Stock Market Fund (VTSAX) Total International Stock Market Fund (VTABX) Total Bond Market Fund (VBTLX) Mostly because I wanted more diversification to small and mid-caps,...
by dvd7e
Sat Dec 13, 2014 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a reasonable asset allocation?
Replies: 14
Views: 1494

Is this a reasonable asset allocation?

Emergency funds: 6 months of expenses Debt: Mortgage (~3%) and a rental property mortgage (2.5%) Tax Filing Status: Married Filing Jointly Tax Rate: 28% Federal, ?% State Age: Late 20's Desired Asset allocation: 90% stocks / 10% bonds ??? This is part of my question Desired International allocation:...
by dvd7e
Sat Dec 13, 2014 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: "Double Rollover" 401k->403b->IRA
Replies: 5
Views: 907

Re: "Double Rollover" 401k->403b->IRA

Just to follow up...I contacted my employer benefits office, and they DO allow in-service rollover contributions to be rolled into another qualifying plan.
by dvd7e
Sun Dec 07, 2014 7:48 pm
Forum: Investing - Theory, News & General
Topic: Calculate Annualized Returns from a Portfolio
Replies: 12
Views: 1336

Re: Calculate Annualized Returns from a Portfolio

If you have a PC running Windows, then you can use the free MS Money software, but you will have to manually enter prices for the dates you want and also all the reinvested dividends. You should start doing this to keep track going forward and if you are motivated, you can spend 1 hour a week addin...
by dvd7e
Sun Dec 07, 2014 5:25 pm
Forum: Investing - Theory, News & General
Topic: Calculate Annualized Returns from a Portfolio
Replies: 12
Views: 1336

Re: Calculate Annualized Returns from a Portfolio

Thanks for the replies everyone. These are all useful and interesting links, but not quite what I was looking for. (For the sake of this discussion, at least) I wasn't really looking to backtest a portfolio against some random period of historical data for future projection, but rather to calculate ...
by dvd7e
Sat Dec 06, 2014 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawing from Traditional vs. Roth "buckets"
Replies: 9
Views: 877

Re: Withdrawing from Traditional vs. Roth "buckets"

For example if I have 75% Roth and and 25% Traditional and I want to withdraw $1, can I say that I want that $1 to only come from Traditional or only from Roth, or will it automatically be $0.75 from Roth and $0.25 from Traditional because those are the ratios in my account? And is the answer to th...
by dvd7e
Sat Dec 06, 2014 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawing from Traditional vs. Roth "buckets"
Replies: 9
Views: 877

Re: Withdrawing from Traditional vs. Roth "buckets"

If I have some of my retirement money as Traditional/Pre-tax and some as Roth, when I go to withdraw can I specify which "bucket" I want to withdraw from, or will I draw from both? Depending on my (unknown) tax situation at retirement, I may want to go to one and not the other. For exampl...
by dvd7e
Sat Dec 06, 2014 4:28 pm
Forum: Investing - Theory, News & General
Topic: Calculate Annualized Returns from a Portfolio
Replies: 12
Views: 1336

Calculate Annualized Returns from a Portfolio

Does anyone know of a website that will let you enter a hypothetical portfolio (in terms of percentages) and see what it's annualized return actually would have been in some custom time period in the past? e.g. Fund 1 = 20%, Fund 2 = 50%, Fund 3 = 30%, and I want the annualized return from 5/1/2009 ...
by dvd7e
Sat Dec 06, 2014 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawing from Traditional vs. Roth "buckets"
Replies: 9
Views: 877

Withdrawing from Traditional vs. Roth "buckets"

If I have some of my retirement money as Traditional/Pre-tax and some as Roth, when I go to withdraw can I specify which "bucket" I want to withdraw from, or will I draw from both? Depending on my (unknown) tax situation at retirement, I may want to go to one and not the other. For example...
by dvd7e
Sat Dec 06, 2014 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: "Double Rollover" 401k->403b->IRA
Replies: 5
Views: 907

"Double Rollover" 401k->403b->IRA

I have some money in a former employer's 401(k), and I'm not sure if I should a) roll it over to my current employer's 403(b), b) roll it over to an IRA, or c) keep it where it is in my former employer's 401k. I'm happy with the investment choices and fees in all 3, so that's a wash. Ideally, I'd li...