Search found 95 matches

by dvd7e
Wed Nov 18, 2020 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Switching Health Insurance after Birth
Replies: 7
Views: 412

Re: Switching Health Insurance after Birth

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...
by dvd7e
Wed Nov 18, 2020 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Switching Health Insurance after Birth
Replies: 7
Views: 412

Re: Switching Health Insurance after Birth

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...
by dvd7e
Tue Nov 17, 2020 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Switching Health Insurance after Birth
Replies: 7
Views: 412

Switching Health Insurance after Birth

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...
by dvd7e
Sat Sep 05, 2020 8:51 am
Forum: Personal Investments
Topic: Need help with Nonqualified Supplemental 401k
Replies: 11
Views: 450

Re: Need help with Nonqualified Supplemental 401k

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 ...
by dvd7e
Sat Sep 05, 2020 6:53 am
Forum: Personal Investments
Topic: Need help with Nonqualified Supplemental 401k
Replies: 11
Views: 450

Re: Need help with Nonqualified Supplemental 401k

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?
by dvd7e
Fri Sep 04, 2020 3:44 pm
Forum: Personal Investments
Topic: Need help with Nonqualified Supplemental 401k
Replies: 11
Views: 450

Re: Need help with Nonqualified Supplemental 401k

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...
by dvd7e
Fri Sep 04, 2020 12:53 pm
Forum: Personal Investments
Topic: Need help with Nonqualified Supplemental 401k
Replies: 11
Views: 450

Need help with Nonqualified Supplemental 401k

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 ...
by dvd7e
Wed Aug 19, 2020 2:10 pm
Forum: Investing - Theory, News & General
Topic: Correlated Fat Tails Formula
Replies: 3
Views: 354

Correlated Fat Tails Formula

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...
by dvd7e
Tue Aug 18, 2020 1:47 pm
Forum: Personal Investments
Topic: Age of 55 Time Requirement?
Replies: 4
Views: 811

Re: Age of 55 Time Requirement?

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 ...
by dvd7e
Tue Aug 18, 2020 1:18 pm
Forum: Personal Investments
Topic: Age of 55 Time Requirement?
Replies: 4
Views: 811

Age of 55 Time Requirement?

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...
by dvd7e
Tue Aug 18, 2020 6:46 am
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 eligibility when current company is being acquired
Replies: 4
Views: 619

Re: Rule of 55 eligibility when current company is being acquired

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...
by dvd7e
Mon Aug 17, 2020 8:24 pm
Forum: Personal Investments
Topic: Convert After Tax money to 401(k) or IRA?
Replies: 3
Views: 391

Convert After Tax money to 401(k) or IRA?

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...
by dvd7e
Wed Jul 15, 2020 9:30 am
Forum: Personal Investments
Topic: Calculating Portfolio Uncertainty (Analytically)
Replies: 7
Views: 446

Re: Calculating Portfolio Uncertainty (Analytically)

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...
by dvd7e
Tue Jul 14, 2020 8:15 pm
Forum: Personal Investments
Topic: Calculating Portfolio Uncertainty (Analytically)
Replies: 7
Views: 446

Calculating Portfolio Uncertainty (Analytically)

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...
by dvd7e
Fri Mar 27, 2020 10:01 pm
Forum: Personal Investments
Topic: Roth IRA Basis (Form 8606 Line 24)
Replies: 1
Views: 179

Roth IRA Basis (Form 8606 Line 24)

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...
by dvd7e
Sat Jan 25, 2020 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Is Age + Service prorated for part time work?
Replies: 1
Views: 227

Is Age + Service prorated for part time work?

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...
by dvd7e
Thu Jan 23, 2020 9:46 pm
Forum: Personal Investments
Topic: MEGA Backdoor Roth *401k* Question
Replies: 7
Views: 529

Re: MEGA Backdoor Roth *401k* Question

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...
by dvd7e
Thu Jan 23, 2020 8:33 pm
Forum: Personal Investments
Topic: MEGA Backdoor Roth *401k* Question
Replies: 7
Views: 529

MEGA Backdoor Roth *401k* Question

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 ...
by dvd7e
Thu Jan 23, 2020 8:19 pm
Forum: Personal Investments
Topic: How to maximize available headroom in tax bracket
Replies: 4
Views: 531

How to maximize available headroom in tax bracket

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...
by dvd7e
Sun Mar 24, 2019 11:43 am
Forum: Personal Investments
Topic: Quick Questions on Withdrawal Rates
Replies: 1
Views: 267

Quick Questions on Withdrawal Rates

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...
by dvd7e
Thu Sep 27, 2018 9:56 pm
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Re: Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Tue Sep 25, 2018 7:34 am
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Re: Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Sat Sep 22, 2018 7:11 am
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Re: Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Fri Sep 21, 2018 11:10 pm
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Re: Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Fri Sep 21, 2018 7:33 pm
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Re: Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Fri Sep 21, 2018 11:41 am
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Re: Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Thu Sep 20, 2018 8:51 pm
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Re: Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Thu Sep 20, 2018 8:44 pm
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Re: Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Thu Sep 20, 2018 8:28 pm
Forum: Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 10374

Im going to die somewhere between Bankruptcy and $20 million

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...
by dvd7e
Sat Sep 15, 2018 9:01 am
Forum: Personal Investments
Topic: What if I exceed the 55k 401k limit?
Replies: 4
Views: 1022

What if I exceed the 55k 401k limit?

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...
by dvd7e
Fri Sep 14, 2018 4:19 pm
Forum: Personal Investments
Topic: Reasonable Asset Allocation / Financial Picture
Replies: 6
Views: 378

Re: Reasonable Asset Allocation / Financial Picture

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...
by dvd7e
Fri Sep 14, 2018 4:10 pm
Forum: Personal Investments
Topic: Reasonable Asset Allocation / Financial Picture
Replies: 6
Views: 378

Re: Reasonable Asset Allocation / Financial Picture

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 ...
by dvd7e
Fri Sep 14, 2018 3:57 pm
Forum: Personal Investments
Topic: Reasonable Asset Allocation / Financial Picture
Replies: 6
Views: 378

Re: Reasonable Asset Allocation / Financial Picture

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 ...
by dvd7e
Fri Sep 14, 2018 3:32 pm
Forum: Personal Investments
Topic: Reasonable Asset Allocation / Financial Picture
Replies: 6
Views: 378

Reasonable Asset Allocation / Financial Picture

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...
by dvd7e
Sat Sep 08, 2018 7:43 pm
Forum: Personal Investments
Topic: windfall
Replies: 22
Views: 2431

Re: windfall

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...
by dvd7e
Sun Sep 02, 2018 6:16 am
Forum: Personal Investments
Topic: Multiple Mega Backdoors?
Replies: 8
Views: 970

Re: Multiple Mega Backdoors?

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...
by dvd7e
Sun Sep 02, 2018 5:53 am
Forum: Personal Investments
Topic: Fully maxed out
Replies: 70
Views: 9010

Re: Fully maxed out

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...
by dvd7e
Sun Sep 02, 2018 5:50 am
Forum: Personal Investments
Topic: Fully maxed out
Replies: 70
Views: 9010

Re: Fully maxed out

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,...
by dvd7e
Sat Sep 01, 2018 9:38 pm
Forum: Personal Investments
Topic: Fully maxed out
Replies: 70
Views: 9010

Fully maxed out

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...
by dvd7e
Sat Sep 01, 2018 12:06 pm
Forum: Personal Investments
Topic: What about Earnings in MEGA Backdoor?
Replies: 4
Views: 431

What about Earnings in MEGA Backdoor?

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...
by dvd7e
Sat Aug 25, 2018 10:29 am
Forum: Personal Investments
Topic: Do I have to keep track of contributions?
Replies: 29
Views: 2262

Re: Do I have to keep track of contributions?

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 ...
by dvd7e
Sat Aug 25, 2018 7:02 am
Forum: Personal Investments
Topic: Do I have to keep track of contributions?
Replies: 29
Views: 2262

Re: Do I have to keep track of contributions?

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...
by dvd7e
Sat Aug 25, 2018 6:31 am
Forum: Personal Investments
Topic: Do I have to keep track of contributions?
Replies: 29
Views: 2262

Do I have to keep track of contributions?

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...
by dvd7e
Thu Aug 23, 2018 5:47 am
Forum: Personal Investments
Topic: Traditional vs Roth if Roth conversions are limited
Replies: 6
Views: 526

Re: Traditional vs Roth if Roth conversions are limited

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...
by dvd7e
Wed Aug 22, 2018 8:31 pm
Forum: Personal Investments
Topic: Traditional vs Roth if Roth conversions are limited
Replies: 6
Views: 526

Traditional vs Roth if Roth conversions are limited

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...
by dvd7e
Tue Aug 21, 2018 8:37 pm
Forum: Personal Investments
Topic: Multiple Mega Backdoors?
Replies: 8
Views: 970

Re: Multiple Mega Backdoors?

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...
by dvd7e
Tue Aug 21, 2018 5:32 pm
Forum: Personal Investments
Topic: Multiple Mega Backdoors?
Replies: 8
Views: 970

Multiple Mega Backdoors?

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 ...
by dvd7e
Sat Nov 11, 2017 4:53 pm
Forum: Personal Investments
Topic: LifeStrategy Fund in Taxable account
Replies: 34
Views: 4989

LifeStrategy Fund in Taxable account

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...
by dvd7e
Tue Oct 17, 2017 9:50 am
Forum: Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 1433

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 Re...
by dvd7e
Tue Oct 17, 2017 9:30 am
Forum: Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 1433

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...