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johnra

I am not sure the distinction between being financial conservatorized and being disabled--the legal question I think you need to answer is is she a Disabled Adult Child (DAC). This must be determined before age 22 for ABLE eligibility. SSI would be moot since she is working, but her eligibility stat...

johnra

Rather than just looking at AA percentage, look at amounts and their location. In your IRA, I would have a good 4-6 years worth of RMDs in cash and bonds and the rest in stocks, whatever that comes out to be. When you take your RMDs, take it from whatever is doing well. Remember, you don't have to s...

johnra

I put stock funds (including a few stocks I am rolling the dice on) in my Roth, and what bond funds and REITs I have in my traditional IRA. I am not planning on using my Roth for the most part, at least any time soon and therefore aimed for growth.

johnra

I think there is not enough information! Is the disability in the eyes of the parents or in the eyes of the state? Did the disability start before age 22 (is the person a "disabled adult child")? Is the disability cognitive or physical? Who has and who will have decisional capacity? Is there a conse...

johnra

There is nothing wrong with holding the same fund in taxable and Roth accounts. You have 20 years, so for now you want growth. I'd be all stocks, no bonds, and about 80% US (ITOT) and 20% International (IXUS).

johnra

I logged into my account, which is coded "Private Client Group," and tried to find a description of the Group. I know it used to be there, but I couldn't find it. One link seemed to mistakenly direct me to Wealth Management. I spent more time perusing the Fidelity site and also Googling. I think th...

johnra

I think you need bonds in BOTH tax-deferred and taxable accounts. The reason is that in a stock downturn, when you need cash, you want to be able to take from either side depending upon what the situation calls for and the particulars of the year. While bonds in a taxable account generates taxable i...

johnra

It seems to me you should think about asset allocation in terms of time, not percent. You should have 4-6 years worth of assets in conservative investments such as bonds/cds/cash, and the rest in growth investments such as stocks and REITS. That way, the greater the size of assets (such as yours), t...

johnra

I think you have great funds even though actively managed--ERs not terrible and well offset growth. As you rebalance and adjust over the next 2-5 years, you may want to move to different asset allocation and more indexing.

johnra

I think one of the critical parts of bond funds for those of us savings is the monthly re-investing. The bonds inside the fund are fluctuating in value and yield, but dividends easily and automatically reinvest and there is dollar-cost averaging

johnra

1) I agree with above: you can self-manage and simplify, not necessarily into only 3 funds, but <8 funds 2) I would keep a mix of stocks and bonds in both the taxable and tax deferred accounts--because of RMDs, will need to move money and want versatility and liquidity; 3) I would not move out of Fi...

johnra

... because the fund buys and sells bonds. If a bond falls in price, the fund might sell that bond, and buy a new bond with a higher coupon rate at par. The new bond will thus pay more dividends, but will not rise back in price unless rates fall. Do bond fund managers know that holding a bond to ma...

johnra

For those in the growth phase of their investment life, I would think rising interest rates means higher yield of the bond fund. Re-investing dividends buys shares at a lower cost. Don't bond fund managers hold on to bonds until they mature, get full face value back and then re-invest?

johnra

Yes in that high tax bracket you should max out your pre-tax savings. Which it sounds like you are doing. Now with the rest of your money, you already paid taxes on it. You could put it in a taxable account... or you could let it grow tax free in a roth IRA. In the Roth IRA you can withdraw your co...

johnra

I think it might be time to consider a change in asset allocation. I consider 80/20 to be the max for most situations for 40 year olds. In my mind, it is time to start adjusting stocks downward a bit, even without the inherited IRA. In addition to that, with this large influx of money, your "need" ...

johnra

(1) I would consolidate your main accounts into one place, either Fidelity or Vanguard (I like Fidelity alot) and keep your checking for your daily liquidity. (2) I would hire a financial advisor at this (Fidelity or Vanguard)! If you don't enjoy money and investments, don't do it. Most of the peopl...

johnra

I'd put $100K in cash and CD's and the rest in growth, (however you like your growth). Then you're good with RMDs for a number of years, and you have an emergency fund. And don't forget to enjoy the extra security and liquidity!--spend some on things you've been putting off and remember whoever left...

johnra

No, not at all! I would leverage your financial situation by keeping your liquidity and potential for growth and control. I have been in a similar situation of moving to a HCOL area with savings. I got a mortgage for 10% down, 3% APR, and 40 year amortization. I am enjoying the liquidity, managing m...

johnra

$2,500 cash, to have (and enjoy) pocket money (and be his own man now that he is one)
$22,500 total US stock
$7,000 international
$3,000 Pacific Basin or Emerging Markets

johnra

Life is too short. You should absolutely not be working a job that is 'absolute misery' for the next 5 years, regardless of your level of net worth. The fact that you have $3.2M excluding your house makes it even crazier. I would suggest that you find a new job now that's more rewarding. With your ...

johnra

(1) I would hire a financial advisor for 0.5-1.0% at Fidelity or Charles Schwab with fiduciary responsibility. That will take the management off your hands--the people on this forum groove on doing it your self, but that is not normal for most. (2) I would not buy a 1M house--a lot of responsibility...

johnra

Morgan Stanley Funds can be purchased through a Fidelity Account for no transaction fee (NTF) and loads are waived.

johnra

Cash value grows by 3.9% per year (net). If I die, my heirs receive 3X the current cash value.

johnra

I like the BH approach to asset allocation and the long-term view, the deliberate analytics, and the consumer-conscious frugality. I have learned many things here. I don't have a written IPS statement or follow an explicit budget, and I do a number of other things that deviate from what seems common...

johnra

I think your question is good--if you put most of your savings into retirement space, then (a) you can't access it without penalty until you are 59.5, and (b) then it is all taxable. I am 64, maxed out as best I could my retirement savings, but now I have >95% of my savings in tax-deferred space, go...

johnra

Can't you just put each deposit directly into the IRA?

johnra

Pay off the loan,
Put 100K into a checking/savings account with a debit card and check writing,
Put 500 into a world fund
Put the rest into a total bond fund
Go travel for about 1-6 months.

johnra

Don't do it. You have clear purpose, a secure job in a federal sanctuary with predictable employer, clear boundaries, and boundless opportunities. The private world is without alighnment, order or stability and has sweatshop RVU mentality. Throw in the commute and this decision is easy. it is not ab...

johnra

At your age, I would only have about 15-20% in bonds. You want growth. The only purpose of bonds is that if you need any cash between now and miuch later, you will have bonds to sell if the market is low.

johnra

$277/$2,500,000=0.0001=0.01%

johnra

I don't really include my inherited IRA in my overall AA--I regard it as something extra from my dad that I get to enjoy and have as extra. Therefore, I keep it about 80-20 stocks-bonds, and yes, I draw the RMD from the bond portion, trying to keep this the gift that keeps on giving.

johnra

Hi Guys, Heard that vietnam market is growing? Any recommendations for investing in vietnam total stock market? Anything from Vanguard? I did look into VNM (ETF) and seems like price is rising but it took a steep decline from $30 to $13 back in 2015? Why is this? Thank you in advance. Admiral Share...

johnra

I am more comfortable saving and growing, and uncomfortable spending. A possible transition into retirement (and spending) is difficult. I have worked so hard on becoming, I am having trouble being.

johnra

Consider these ETFs:
HORIZONS MARIJUANA LIFE SCIENCES HMLSF, Canadian (I bought this in early Nov, and it is +126%)
ETFMG ALTERNATIVE HARVEST ETF, MJX, US, also rising sharply

johnra

I visited Vietnam about 12 years ago and it is a beautiful place. I was so impressed I bought what was then Fidelity's SE Asia fund, which did very very well over the next few years. As I became more literate about investing, I learned that in fact this fund had no investments in Vietnam at all. I r...

johnra

Northwest Airlines (acquired by Delta)

johnra

I took a chance, thinking this is the beginning a long growth industry, and bought HORIZONS MARIJUANA LIFE SCIENCES (HMLSF) last November. So far, up +84%.

johnra

Overall, up 17.5% for the year, mostly 60% stocks, 40% bonds. But I do have one small account where I pick stocks I think are special, buy and hold, and that account is +49% for the year (and up 300% over the last 5 years). Completely cheating vs the "book" but I do it to. It's virtually a hobby fo...

johnra

Overall, up 17.5% for the year, mostly 60% stocks, 40% bonds.

But I do have one small account where I pick stocks I think are special, buy and hold, and that account is +49% for the year (and up 300% over the last 5 years).

johnra

I would maximize Roth space now--you have ~1.4M in taxable space, 578K in tax deferred space, but only 28K in Roth space! One way or the other, you will want more in Roth space and have to pay ~25% to do this, so why not start now and let the growth occur there? It will only get more difficult (emot...

johnra

I use UC's DCP--it is very easy through UC's Fidelity retirement accounts to transfer into my Fidelity Roth--I just call Fidelity (800) 557-1900‬ every month and they know exactly how to transfer. For you, it depends on your age and tax bracket, but for me, I am trying to increase Roth space for div...

johnra

I too today just got fed up with State Farm, where I have been a client for >30 years. I have looked at Costco and viewforum.php?f=11 .

johnra

I don't think "getting it right the first time" is the right way to think about this--You want to get it right for "now", but ought to revisit it every 3-5, or 10 years--things may change. In my situation, we needed to set up a special needs trust for one of our four kids, and then distribute the re...

johnra

I am concerned about how big Vanguard has grown in a short amount of time--bigger is not better, I worry about their size, and by comparison, Fidelity is much smaller (and very tightly managed). In addition, while in princicple I like Vanguard's ideology, in fact, ironically, Fidelity is incentivize...

johnra

Just change your asset allocation...sounds like should be 20-40% stocks, rest bonds, cds, savings. Don't forget to eat some of your meals out.

johnra

I am trying to understand about converting Trad IRA-Roth IRA, and now I am confused. What is the difference between?:

1) Net Investment Income Tax
2) Additional Medicare Tax
3) IRMAA

How big are these effects, and will these change in 2018 tax law?

Thanks much.

johnra

Why not just change your AA to 30-40 stocks, rest bonds, adding cash and CD?

johnra

64, still working, >90% assets in tax-deferred accounts (TIRA, 403b, 457b). I can contribute aftertax dollars up to the 415c limit of $55K to DCP plan that can be in-kind transferred to Roth on a regular basis. Alternatively, I could use the after-tax dollars to pay the tax needed to convert 2-4X la...

johnra

I say why not mix insurance with investments?--there doesn't seem to be a problem discussing annuities, bonds, mortgages, taxable and non-taxable accounts, low risk bonds, long term investments and staying the course etc. Whole life is an expensive, conservative niche investment that adds diversific...

johnra

I too would put growth inside the Roth! You don't actually "exchange" bonds and stocks between the different accounts, you buy and sell inside the count--this is no big deal for mutual funds.

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