Search found 75 matches

by dvd7e
Thu Sep 27, 2018 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 46
Views: 9612

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: Investing - Help with Personal Investments
Topic: What if I exceed the 55k 401k limit?
Replies: 4
Views: 890

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: Investing - Help with Personal Investments
Topic: Reasonable Asset Allocation / Financial Picture
Replies: 6
Views: 320

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: Investing - Help with Personal Investments
Topic: Reasonable Asset Allocation / Financial Picture
Replies: 6
Views: 320

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: Investing - Help with Personal Investments
Topic: Reasonable Asset Allocation / Financial Picture
Replies: 6
Views: 320

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: Investing - Help with Personal Investments
Topic: Reasonable Asset Allocation / Financial Picture
Replies: 6
Views: 320

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: Investing - Help with Personal Investments
Topic: windfall
Replies: 22
Views: 2019

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: Investing - Help with Personal Investments
Topic: Multiple Mega Backdoors?
Replies: 8
Views: 844

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: Investing - Help with Personal Investments
Topic: Fully maxed out
Replies: 30
Views: 3063

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: Investing - Help with Personal Investments
Topic: Fully maxed out
Replies: 30
Views: 3063

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: Investing - Help with Personal Investments
Topic: Fully maxed out
Replies: 30
Views: 3063

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: Investing - Help with Personal Investments
Topic: What about Earnings in MEGA Backdoor?
Replies: 4
Views: 344

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 Earni...
by dvd7e
Sat Aug 25, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Do I have to keep track of contributions?
Replies: 29
Views: 2139

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: Investing - Help with Personal Investments
Topic: Do I have to keep track of contributions?
Replies: 29
Views: 2139

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: Investing - Help with Personal Investments
Topic: Do I have to keep track of contributions?
Replies: 29
Views: 2139

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: Investing - Help with Personal Investments
Topic: Traditional vs Roth if Roth conversions are limited
Replies: 6
Views: 472

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: Investing - Help with Personal Investments
Topic: Traditional vs Roth if Roth conversions are limited
Replies: 6
Views: 472

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: Investing - Help with Personal Investments
Topic: Multiple Mega Backdoors?
Replies: 8
Views: 844

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: Investing - Help with Personal Investments
Topic: Multiple Mega Backdoors?
Replies: 8
Views: 844

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: Investing - Help with Personal Investments
Topic: LifeStrategy Fund in Taxable account
Replies: 16
Views: 2031

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: Investing - Help with Personal Investments
Topic: Help w/ parents investments
Replies: 22
Views: 1297

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: 1297

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: 1297

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: 1297

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: 1297

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: 1297

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: 1297

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: 1297

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: 1297

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: 1297

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: 2268

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: 2268

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: 2268

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: 2268

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: 2268

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: 2268

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: 1426

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: 1426

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: 1426

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: 1426

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: 1074

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: 1074

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...