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johnra

My daughter is age 30, her disability is cognitive not physical and here are some things i have learned in addition to all that was said above about SSI, keeping assets below 2K, keeping ABLE below 100K and aligning SNT so as not to conflict with government supports. The keywords as the child reache...

johnra

The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier. I evidently didn't do this correctly; for the payc...

johnra

After signing in, click "customize" near the top left (just under the Trade tab), then click "Account Groups", then scroll to the Visa account, and unclick "Hide this account"

johnra

My wife and I do essentially everything at Fidelity. We have direct deposit, debit, credit and checking. But they are all tied to our investment account, there is no CMA. The cash balance is about 6 months savings, essentially our emergency fund, and sits in SPAXX, which is earning about 1.4% inter...

johnra

Here are the reasons I have a retirement countdown clock: No more worries about losing job, downsizing, or the latest consultant "hot" trend of the year No more Icebreakers to get to know people (This alone is worth retiring) No more getting in a plane, train, car, unless I want to No mor...

johnra

To me the goal should not be "retirement" but "the choice to retire or to work or to do some individually customized combination of the two." When we reached FI, it changed my whole mindset. It changes the things you will put up with, the people you suck up to versus peaceably i...

johnra

My wife and I do essentially everything at Fidelity. We have direct deposit, debit, credit and checking. But they are all tied to our investment account, there is no CMA. The cash balance is about 6 months savings, essentially our emergency fund, and sits in SPAXX, which is earning about 1.4% intere...

johnra

Yes, I am starting to see and am reading more about these and I really appreciate your insights

johnra

I may be missing the point of this excellent discussion: In light of the SECURE Act, does it make more financial sense to fund a SNT with after-tax (non-IRA) or pre-tax (IRA) assets? In our case, the SNT is created just in case monies are needed, but it is not clear that they are? If the IRA is tran...

johnra

...I appreciate Johnra's point about simplicity. Are you still using a trust structure for her, but just not feeding any IRA monies into it?... Yes, my wife's and my current revocable trust will become an irrovocable trust when one of us dies, and then the last one dies, the assets will fund our da...

johnra

My wife and I are planning on funding our disabled daughter's SNT with monies from life insurance and taxable assets up to a defined limit, but not from our IRAs. The remaining assets and our IRAs will be divided amongst our non-disabled children. One principle I am learning now that I am managing m...

johnra

I don't see a problem--you want bonds in your taxable account. They're fine--They provide a stable basket and in addition, when you need cash, you can decide from which basket to take it.

johnra

Inquire about after-tax DCP? I have this in my UC benefits. It allows after-tax contributions (up to 55K) that can be rolled directly into a Roth. You don't want growth in the DCP because gains are taxable, you just want it as a vehicle to get it into a Roth. I put my DCP contribution into a savings...

johnra

1.05 is a bargain--The ER for PONAX (the class A version of PIMIX) is 1.45%.

johnra

I put my after-tax contributions into a ~2% savings and then rollover to my Roth right away each month. There is no tax advantage to having growth in an after-tax plan, in fact growth would be better in a taxable account where it would be taxed as long term gains rather than taxable income.

johnra

Since one way or another you will be leaving your current job, take time off now and look around. You are most competitive to be hired by someone else while still employed--shop around, find out your marketability, and you might found a few great opportunities. This way, you are in a good position t...

johnra

I say you should regard these as two portfolios or buckets. One is for now, and in it you want saving, growing, spending, travel, kids, fun, needs, eating out etc. I'd keep cash for liquidity (20-30+%) in money market, and the rest in stocks (rest, maybe some bonds.) The second portfolio is for reti...

johnra

She has SSA and VA survivor benefits plus $250K. I would consider $50K cash account (yielding ~2+%), $100K in total bond fund, $50K in high yield bond fund, and $50K in a stock index fund.

johnra

VNQ (it's an ETF)

johnra

I'd put 60-80% in B and then put the remaining 20-40% into an extended market index fund, which will get the tilt you want at low ER

johnra

I have both and prefer Fidelity--the service, the web and visualization are easier and more intuitive.

johnra

Not sure, I bring whatever forms I get from Fidelity to a guy who does my taxes, but not sure what he does with them. There is around $1 or $2 of taxable gains per year the way I am doing this.

johnra

I have assumed the 415(c) limit includes ALL retirement -- including 403(b), UCRP and DCP. There are previous posts that indicate that 457(b) can be saved in addition to the 415(c) limit--see for example: https://www.bogleheads.org/forum/viewtopic.php?t=68443 or http://www.bogleheads.org/forum/viewt...

johnra

1) you want a nice mix of asset locations for retirement savings, both tax deferred and tax free;
2) but at the same time, you want to keep it simple--trying to add backdoor after-tax contributions to my tIRA (which is all tax deferred) seems like a colossal bookkeeping headache.

johnra

As I understand it, the limit for all contributions (except the matching employer funds) is 55K. I now only contribute to the DCP, and stopped contributing toe the 403B or 457B. I subtract from the 55K limit the amount that is coming out of my salary to the UCRP. that seems a little odd. Max total ...

johnra

The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier. How much are you allowed to contribute to the afte...

johnra

The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.

johnra

I would put all your retirement in stocks--you have at least a 30 year horizon. If you must have bonds at all, I would put them in an ETF in the taxable account -- that will be safe money that you can use and may need in the next 30 years so you don't want much risk. Your tax bracket is about 24% on...

johnra

1) Keep your life style in line with your income and save your money before you spend it
2) Put your retirement savings directly into retirement accounts every single month (keep it out of reach)
3) Don't compare your life style to others ("do not covet your neighbor")

johnra

I took one of our pre-tax accounts that wasn't very large compared to our other accounts and i started investing in individual stocks that I liked (about 6-8 of them) and i bought and mostly hold, some occasional selling and buying. This account has more than quadrupled in the last 6 years to the po...

johnra

Close your eyes, dream what you really want to do with your life, and then go do it! You have three major assets--time, health, and money. Don't blow it, it may not come your way again.

johnra

3) Still the main determinant of where you contribute is your marginal tax rate How so? If you are in a high marginal rate, contributions to a tax deferred account will be save taxes now and presumably not withdrawn until you are at a lower rate. If you are in a low tax bracket, pay the taxes now f...

johnra

1) My after tax contribution plan and my Roth are both at the same institution--it only takes a phone call to rollover
2) At the end of the day, you want both pre-tax and tax free savings
3) Still the main determinant of where you contribute is your marginal tax rate

johnra

My worst financial decision ever was transferring assets to Merrill Lynch, and my wisest financial decision ever was getting out!

johnra

Look at ABLE accounts...they allow up to 100K in assets in the name of the disabled person tax free

johnra

I think you really want all three--taxable, tax-free, and tax-deferred. The question is how to distribute your assets among these, especially for someone who is only 31 years old!

johnra

If you like them and they are doing well, why not keep them, at least for now?

johnra

The dividends in my bond funds are being reinvested, so I don't worry (too much) about NAV--offset by dollar cost averaging.

johnra

I tier our expenses. Here's how: I have my paycheck deposited into the taxable brokerage account at Fidelity (also where the retirement accounts are). The retirement contributions have been taken out automatically. From the taxable brokerage account, I pay all obligations (mortgage, internet, cell, ...

johnra

I call and transfer once a month.

johnra

UGMA and UTMA: https: //www.bogleheads.org/wiki/Uniform_Gift_to_Minors_Act

I was able to do for my kids what my dad did for me--set money aside in the kids name and deliver them into adulthood free of debt and also with some money to manage and spend.

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 the...

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. ...

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.

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