Search found 319 matches

by EdLaFave
Wed Sep 19, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Location - 403b + Roths
Replies: 4
Views: 396

Re: Asset Location - 403b + Roths

Are you essentially asking if it is better to hold stocks in a Roth retirement account and bonds in a Traditional retirement account? If so, then yes. It makes mathematical sense to put the asset class with the highest expected return into the account that won't require you to pay taxes because if e...
by EdLaFave
Fri Sep 14, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: How to overcome regrets/fears?
Replies: 15
Views: 1421

Re: How to overcome regrets/fears?

I think it is statistically likely that your commitment to Roth accounts is sub-optimal. I apologize for being blunt, but I believe the way you currently think about investing is dangerous. You seem to believe that you can read the news, make predictions about the market, and adjust your portfolio t...
by EdLaFave
Wed Sep 12, 2018 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Avoid unqualified dividends by selling a lot too quickly when TLH.
Replies: 7
Views: 1237

Re: Avoid unqualified dividends by selling a lot too quickly when TLH.

Whether a dividend distribution of a mutual fund is qualified or nonqualified has nothing to do with when you buy/sell; it has to do with the buying/selling of underlying securities by the fund...(You’re worrying about nothing.) I believe you are wrong. Among other sources, the boglehead wiki state...
by EdLaFave
Tue Sep 11, 2018 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Avoid unqualified dividends by selling a lot too quickly when TLH.
Replies: 7
Views: 1237

Re: Avoid unqualified dividends by selling a lot too quickly when TLH.

As long as 9/13 is before the record date for Q3 dividends, you should be ok, but I would only sell if I could sell at a loss. Thanks House Blend. This Vanguard page lists the upcoming dividend schedule and uses the term declaration date. This Vanguard page lists historical dividend dates and uses ...
by EdLaFave
Tue Sep 11, 2018 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Mom died, financial guidance welcome.
Replies: 14
Views: 2220

Re: Mom died, financial guidance welcome.

Thanks. I don't believe there was a will (details are unclear) and she lived in Florida.
by EdLaFave
Tue Sep 11, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Mom died, financial guidance welcome.
Replies: 14
Views: 2220

Mom died, financial guidance welcome.

I'm just digging into this topic so any guidance is welcome. I don't know what I don't know, so feel free to answer questions I don't even know to ask. I believe the following may represent the entire picture: 1. Small amount in an IRA (my sister was the beneficiary). 2. Life insurance policy from e...
by EdLaFave
Thu Sep 06, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: 457?
Replies: 9
Views: 471

Re: 457?

The T. Rowe Price website does have the expense ratio listed as 0.74% so the link may be outdated but definitely a great reference. You're probably looking at the T. Rowe Price Retirement 2060 Fund , which I think is different than the T. Rowe Price Retirement 2060 Trust, which is what is available...
by EdLaFave
Thu Sep 06, 2018 10:07 am
Forum: Investing - Help with Personal Investments
Topic: 457?
Replies: 9
Views: 471

Re: 457?

The expense ratios of the funds can be found towards the bottom of this document . At least I think that is accurate/current. My understanding is that the T Rowe Price Target Date funds cost 0.38%, not 0.74%. The Wellington fund is 0.16%. I personally wouldn't pay an extra 0.22% for the target date ...
by EdLaFave
Wed Sep 05, 2018 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Need some guidance on 401k, 403b, 457b
Replies: 6
Views: 568

Re: Need some guidance on 401k, 403b, 457b

I'd like to second everything Krow said. I also believe sjt is right about having to split the $18,500 limit between the 401k and 403b...but that doesn't impact the 457b, which you can also put $18,500 into. I documented Security Benefit's NEA DirectInvest plan here . I documented the steps I went t...
by EdLaFave
Wed Aug 29, 2018 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: 457(b) error
Replies: 7
Views: 801

Re: 457(b) error

I won't comment on any kind of "recourse". It isn't clear how many months you've gone without contributing to the 457b when you were eligible to make contributions. However, you have 4 months left in the year and if it were me, I'd set my 457b contribution rate such that by the end of the year I wil...
by EdLaFave
Sun Aug 26, 2018 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocating my 403b - Advice welcome!
Replies: 16
Views: 789

Re: Reallocating my 403b - Advice welcome!

I’ve never done a 403b rollover, but I don’t see why you couldn’t. If you roll it into an NEA DirectInvest account it’ll get you that much closer to them dropping the $35/year fee, which they do for account balances over $50,000.

Best of luck to you!
by EdLaFave
Sun Aug 26, 2018 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocating my 403b - Advice welcome!
Replies: 16
Views: 789

Re: Reallocating my 403b - Advice welcome!

As far as I know Security Benefit always makes NEA DirectInvest available everywhere they offer a 403b. However, they do their best to hide it. When I was enrolling I talked to a multitude of Seceuity Benefit employees. Most of them didn’t acknowledge the existence of NEA DirectInvest and those who ...
by EdLaFave
Sun Aug 26, 2018 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocating my 403b - Advice welcome!
Replies: 16
Views: 789

Re: Reallocating my 403b - Advice welcome!

You can post all of the fees for Voya and Valic, but I am skeptical that they don’t have unacceptable fees. SecurityBenefit has something called NEA DirectInvest which is an elite 403b plan that allows you to build a Vanguard 3 fund portfolio at very low cost. I documented that plan here . I documen...
by EdLaFave
Sun Aug 26, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocating my 403b - Advice welcome!
Replies: 16
Views: 789

Re: Reallocating my 403b - Advice welcome!

The summation of all of your accounts should meet your desired asset allocation. It would be a mistake to make one account aggressive merely because you have other accounts. However if one account had cheap stock funds and expensive bond funds while another account had the opposite then it would be ...
by EdLaFave
Wed Aug 22, 2018 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

You are still breaking Florida State law if you/spouse aren't mentally incapacitated or your marriage isn't "irretrievably broken". You will need to specify what your grounds for divorce are in the state of Florida and "financial gain" isn't one of the choices...You are actually breaking board poli...
by EdLaFave
Wed Aug 22, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

You can save $1500 in a multitude of ways that are orders of magnitude simpler than getting a divorce. This isn't an either/or proposition. The fact that I can and have saved money by continuing to drive my car for almost two decades now has no bearing on the unrelated tax consequences of marriage.
by EdLaFave
Wed Aug 22, 2018 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

you may not be able to accomplish the divorce without perjuring yourself. Obviously, I don't know what state you are in and the laws vary but as a general matter you are supposed to live separate and apart during the divorce process in many states. While several states permit you to still live in t...
by EdLaFave
Wed Aug 22, 2018 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

Getting divorced to save $1500 in taxes every year seems like a pretty textbook definition of cutting off your nose to spite your face. This is one of those penny wise, pound foolish moves. Who planted this bad seed in your heads? Getting divorced for about $1.5k per year. Really? Hardly worth a re...
by EdLaFave
Wed Aug 22, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

Irelavent if you publicly state your sole intention of disolving the marriage os for financial gain. I find it surprising and quite interesting that a couple would be forced to remain married if they mutually no longer wished to continue on under the terms of the contract. I had this vague notion t...
by EdLaFave
Wed Aug 22, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

Divorcing for the specific purpose of financial gain with anything such as taxes, SS and medical status woudl be fraud and woudl be looked upon as theft. If true, that's interesting. What if one were to file for divorce because they no longer, or never did, believe in the legal institution of marri...
by EdLaFave
Tue Aug 21, 2018 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

Why did you marry in the first place? There once was a marriage penalty. It’s much cheaper to stay single than marry and later divorce. Gill First of all, neither of us knew about the marriage penalty until we filled taxes jointly for the first time. That was a nice surprise. I think we ultimately ...
by EdLaFave
Tue Aug 21, 2018 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

I can’t believe you were considering divorce to just save a thousand bucks It’s fine that some folks on this thread have an emotional attachment to legal marriage. I personally don’t want the government involved in my personal relationships and I certainly don’t like a legal contract that hurts me ...
by EdLaFave
Tue Aug 21, 2018 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

Gill wrote:
Tue Aug 21, 2018 8:14 pm
I’m speechless.
lol and why is that?
by EdLaFave
Tue Aug 21, 2018 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

You say four digits more in tax. Is this $9,999 or less? Seems like small potatoes to consider a divorce. It is very low 4 digits. I don't have the figure in front of me, but it might have been around 1.5k last year. Either way, it is enough for us to prefer having the money in our pockets. There i...
by EdLaFave
Tue Aug 21, 2018 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Re: Is divorce a wise financial move?

We're in the 22% bracket. We're each on the health insurance plan offered by our respective employers...neither plan charges more for singles vs couples. I'm not sure we're getting a break on auto insurance since we've maintained the individual policies that we had before getting married. I'll have ...
by EdLaFave
Tue Aug 21, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Is divorce a wise financial move?
Replies: 90
Views: 4901

Is divorce a wise financial move?

We are considering divorcing strictly for financial benefit and not because of a change in our personal relationship. Frankly, we’re tired of paying four digits more in tax every year just to be married. We know the perk we’re after, but we’re just now beginning to look into the potential cons of a ...
by EdLaFave
Tue Aug 14, 2018 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Funding 403(b) as Wife Starts Full-time Teaching Career
Replies: 10
Views: 793

Re: Funding 403(b) as Wife Starts Full-time Teaching Career

Think of your portfolio as the summation of all accounts. Yes, use the 403b account. Look into whether there is a 457b account available and use it if it is reasonable enough. I'd either build a 3-fund portfolio using: Vanguard Total Intl Stock Index Institutional VTSNX 0.09 Vanguard Institutional I...
by EdLaFave
Mon Aug 13, 2018 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: Avoid unqualified dividends by selling a lot too quickly when TLH.
Replies: 7
Views: 1237

Re: Avoid unqualified dividends by selling a lot too quickly when TLH.

Turn off dividend reinvestment in both your old fund and the new fund. Take dividends in cash. There will be no issue about qualified/unqualified. From experience, don't count on being able to do a round trip back into your original fund unless you're indifferent to paying ST capital gains. You hav...
by EdLaFave
Mon Aug 13, 2018 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Avoid unqualified dividends by selling a lot too quickly when TLH.
Replies: 7
Views: 1237

Avoid unqualified dividends by selling a lot too quickly when TLH.

I'd like some help understanding exactly how to calculate important dates associated with Tax Loss Harvesting and avoiding unqualified dividends in the process. Suppose the following: 1. You were planning to Tax Loss Harvest by placing an order to exchange an old Vanguard mutual fund for a new one b...
by EdLaFave
Wed Aug 08, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Tax-deductible 403b vs. taxable Vanguard ETF
Replies: 26
Views: 1309

Re: Tax-deductible 403b vs. taxable Vanguard ETF

niceguy, speaking as somebody who has tried to reform this industry, I just wanted to throw in my two cents. This exploitation ultimately persists because teachers don't do anything about it. You can argue "why" that is, but the end result is the same. I think you can make a strong argument that the...
by EdLaFave
Wed Aug 08, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Tax-deductible 403b vs. taxable Vanguard ETF
Replies: 26
Views: 1309

Re: Tax-deductible 403b vs. taxable Vanguard ETF

A 2.5% annual fee is obscenely predatory. If you assume a 6% return and 3% inflation, then after 30 years that 2.5% fee will have consumed 87.15% of your real profits. I haven't done the math myself, but grabiner is right. The answer depends on how long the money will remain in the 403b as well as y...
by EdLaFave
Wed Aug 01, 2018 4:31 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 734
Views: 69588

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

I'm reading claims that the revenue generated from security lending is added back to the fund under the banner of "performance" rather than being subtracted from the expense ratio. If this result is significant enough to warrant discussion then why does Vanguard's 500 Index Admiral fund (expense rat...
by EdLaFave
Wed Aug 01, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity advice
Replies: 5
Views: 669

Re: Fidelity advice

I second that advice.

The bond fund is expensive. Diversification comes from the number and type of stocks your funds own, not the number of funds you own. You have excellent diversification with those funds.
by EdLaFave
Mon Jul 30, 2018 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: Setting Up 403b/457 Accounts and Prioritizing Investments
Replies: 8
Views: 643

Re: Setting Up 403b/457 Accounts and Prioritizing Investments

I was not aware that TIAA has assets under management fees in addition to fund expense ratios. we will probably keep some money in a brokerage account in case of early retirement. Double check that TIAA has that fee for your spouse's plan, but I expect they will. Also be aware that in the 403b/457b...
by EdLaFave
Mon Jul 30, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Building a portfolio from scratch, starting with 100k
Replies: 15
Views: 1278

Re: Building a portfolio from scratch, starting with 100k

if I could refi down to 3.5%, then it would make sense to pay it down slowly? It is a judgement call. I think the delta between 3.5% and the long-term expected returns of the stock market is enough to justify taking the 'risk'. Of course I think I've seen reports from Vanguard predicting that the s...
by EdLaFave
Mon Jul 30, 2018 10:15 am
Forum: Investing - Help with Personal Investments
Topic: 403(b) investment choices
Replies: 9
Views: 882

Re: 403(b) investment choices

You're being taken advantage of in your IRA. The funds have high expense ratios and they have loads (i.e. an unecessary sales charge). You may want to read an Investing 101 that I wrote. I'd roll that IRA over to a low cost vendor like Vanguard and invest in total market index funds. That American f...
by EdLaFave
Mon Jul 30, 2018 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Setting Up 403b/457 Accounts and Prioritizing Investments
Replies: 8
Views: 643

Re: Setting Up 403b/457 Accounts and Prioritizing Investments

I assume your spouse is an educator. My wife works for OCPS (FL) and I've got a website on this topic that might be helpful to you. Your district may have negotiated different deals with TIAA and Fidelity, but if they're anything like OCPS then Fidelity is the clear winner. TIAA is the loser because...
by EdLaFave
Mon Jul 30, 2018 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Building a portfolio from scratch, starting with 100k
Replies: 15
Views: 1278

Re: Building a portfolio from scratch, starting with 100k

At 6% I'd pay the debt off as quickly as possible. At an inflationary rate I'd pay the debt off as slowly as possible. Lots of people strongly suggest paying off debt as quickly as possible regardless of the rate. I believe a large percentage of this advice is based on a negative emotional response ...
by EdLaFave
Thu May 24, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: How big a portfolio should I have before retiring?
Replies: 60
Views: 9878

Re: How big a portfolio should I have before retiring?

50 x annual spending is very conservative. If 50 x annual spending is what it takes to make you feel comfortable, so be it. I understand that you're probably speaking to Ron Scott and/or Sandtrap, but I agree that a 2% (50x annual spending) withdrawal rate is extremely conservative. I'll go part ti...
by EdLaFave
Wed May 23, 2018 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: How big a portfolio should I have before retiring?
Replies: 60
Views: 9878

Re: How big a portfolio should I have before retiring?

I let many months pass and emotion dissipate before re-reading this thread. I just wanted to thank everybody for their input, which caused me to make three changes. #1, I've reduced my planned withdrawal rate from 4% to a more reasonable 3%. #2, I've reduced my spending quite a bit. It wasn't worth ...
by EdLaFave
Tue Apr 24, 2018 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: 403b
Replies: 32
Views: 2556

Re: 403b

I'm not familar with every single one of those, but I think you'd be hard pressed to find a better plan than Security Benefit's NEA Direct Invest option (Fidelity and Vanguard are the only competition). I'm enrolled in that plan and I absolutely love it. I documented the plan here . I documented how...
by EdLaFave
Tue Apr 24, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Roth option within 403b
Replies: 8
Views: 533

Re: Roth option within 403b

I just wanted to provide a mathematical foundation that may not be immediately obvious to everybody. For each dollar you invest in a Traditional/Roth account you'll get theses results: Traditional = $1 * (1 + Growth Rate) ^ (n years) * (1 - tax rate in retirement) Roth = $1 * (1 - highest current ta...
by EdLaFave
Tue Apr 24, 2018 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Maxing out 403(b) early in year
Replies: 10
Views: 813

Re: Maxing out 403(b) early in year

Just my two cents: 1. I suppose the only way you can put 100% of successive paychecks into a 403b is if you have a large cash reserve to pay your monthly bills. Perhaps that means you're spending down your emergency fund, which is obviously a risk. If not I guess that implies that you "planned" for ...
by EdLaFave
Tue Apr 24, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: 403b
Replies: 32
Views: 2556

Re: 403b

Resources that might be helpful: I wrote about the AXA 403b plan offered here in Orange County, Fl. It is very bad. I documented the best 403b/457b plans here in Florida, it is probably a good starting point for your area as well. Advice I agree with: 1. Use low cost, total market, index funds (Van...
by EdLaFave
Mon Apr 02, 2018 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: 403(b) / 457(b) Selection and Vendor Advice
Replies: 21
Views: 1700

Re: 403(b) / 457(b) Selection and Vendor Advice

I just wanted to second what Krow said about aspire most likely being your best option. Thanks for plugging my site 👍 btw. You can also push your district to add an even better vendor, but I’d say you’re probably already in better shape than the median district. I believe districts can negotiate the...
by EdLaFave
Mon Mar 05, 2018 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: Teacher with 403b, looking for advice!
Replies: 17
Views: 1230

Re: Teacher with 403b, looking for advice!

I'm a little late to the thread, but I just wanted to confirm that Fidelity is one of the best 403b vendors in the state. If I were in your situation, I'd switch to them. Because Fidelity is so low cost, I personally wouldn't bother with an IRA until/if you're able to max out the 403b. At that point...
by EdLaFave
Mon Feb 12, 2018 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Carryover loss tax question?
Replies: 2
Views: 215

Re: Carryover loss tax question?

The Schedule D output ends up on Line 13 i think. Thanks. I must just be tired. I ultimately didn't follow the instructions on Schedule D correctly. I ignored the instructions right after Line 16 that told me to go to Line 21, which ultimately caused me to never reach Line 21. Line 21 is the line t...
by EdLaFave
Mon Feb 12, 2018 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Carryover loss tax question?
Replies: 2
Views: 215

Carryover loss tax question?

I'm working on my taxes (by hand). I'm trying to carry over losses from a previous year and I assume that means Line 13 on form 1040 will ultimately be set to -3,000. However, when reading through the instructions, it isn't clear how I'm supposed to get to that end result? Line 13 instructs me to fi...
by EdLaFave
Sat Feb 10, 2018 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: 403b search for better options
Replies: 8
Views: 612

Re: 403b search for better options

Just for context, this thread spawned out of this thread . It is great that Security Benefit NEA DirectInvest is an option because it is an elite plan. However, since you're having trouble enrolling, it is worth figuring out exactly which vendors are available under both the 403b and 457b banners. F...
by EdLaFave
Sat Feb 10, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Great 403b for teachers?
Replies: 131
Views: 20138

Re: Great 403b for teachers?

Where is a class action lawsuit I can join? My memory is fuzzy, but it seems everybody (myself included) who signed up for NEA DirectInvest got nothing but trouble when actually talking to Security Benefit people. However, if they filled out the correct forms and followed the correct procedures the...