Search found 528 matches

by CnC
Fri May 11, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Paying Roth conversion taxes with IRA funds
Replies: 7
Views: 718

Re: Paying Roth conversion taxes with IRA funds

You should always pay for Roth conversions with non tax deferred money, it is always to your advantage to have 10,000 in Roth and 7500 in your checking account rather than 7500 in Roth and 10,000 in your checking. Unless of course you don't have money laying around to pay the taxes taxes. If you don...
by CnC
Thu May 10, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 6210

Re: How do you quantify the risk differential between 85/15 and 70/30?

I wouldn't assume that stocks will beat bonds or the next 10 years or even 20. Didn't we just recently finish a 30year period where bonds beat stocks ? No we most certainly didn't. https://www.bogleheads.org/forum/viewtopic.php?t=88293#p1268227 That's handing out false information. It is just the s...
by CnC
Thu May 10, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 6210

Re: How do you quantify the risk differential between 85/15 and 70/30?

I wouldn't assume that stocks will beat bonds or the next 10 years or even 20. Didn't we just recently finish a 30year period where bonds beat stocks ? No we most certainly didn't. Stocks returned an annual return of 9.678% over the last 30 years. Please show me where bonds have averaged +9% over t...
by CnC
Thu May 10, 2018 8:30 am
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 6210

Re: How do you quantify the risk differential between 85/15 and 70/30?

As a quantitative matter, how much difference would it really make if I were 70/30 instead of 85/15? This question refers to the accumulation stage, not the withdrawal stage. Conceptually 85/15 carries more risk. But how do you calculate the extent of the risk and potential reward, quantitatively, ...
by CnC
Thu May 10, 2018 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Annuity value vs lump sum?
Replies: 4
Views: 486

Re: Annuity value vs lump sum?

So, one person said this seems to be a good deal assume that the funding looks solid at retirement.
by CnC
Wed May 09, 2018 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity value vs lump sum?
Replies: 4
Views: 486

Re: Annuity value vs lump sum?

Sounds like a great deal. I got about 5-6k less a year at https://www.immediateannuities.com, and with a COLA would receive much less each year. Is this plan sustainable? Is the company going to be around for another 50 years to support the plan? I'm guessing they're not fully funding the pension a...
by CnC
Wed May 09, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity value vs lump sum?
Replies: 4
Views: 486

Annuity value vs lump sum?

I have looked around but I have not found a comparable annuity to one offered by my employer. I am still many years away from retirement so no decisions need to be made for a while and the future is always subject to change. But my employer has a "Voluntary additional contribution" available in addi...
by CnC
Wed May 09, 2018 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Question on safety of ETFs
Replies: 32
Views: 2270

Re: Question on safety of ETFs

Now this borders on tinfoil hat territory but someone correct me.if I'm wrong. Mutual funds actually own the stock that they sell an index of meaning my sp500 fund can not lose any more value than the sp500 actually does because every share of a mutual fund is backed by a sliver of a share of the sp...
by CnC
Wed May 09, 2018 2:36 pm
Forum: Investing - Help with Personal Investments
Topic: Bad(?) advice from employer retirement advisor [on per-year contribution limits]
Replies: 29
Views: 2209

Re: Bad(?) advice from employer retirement advisor [on per-year contribution limits]

Yes you are well in the clear. There is no reason you can not continue to contribute as you have been.
by CnC
Wed May 09, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Pension. Lump sum or monthly payments.
Replies: 10
Views: 1079

Re: Pension. Lump sum or monthly payments.

Pension all the way.


Many people on here caution against retiring and withdrawing 4% or more a year to make it through retirement.


This gives a far superior withdrawal and much less headaches for someone not particularly good with money.
by CnC
Wed May 09, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Bad(?) advice from employer retirement advisor [on per-year contribution limits]
Replies: 29
Views: 2209

Re: Bad(?) advice from employer retirement advisor [on per-year contribution limits]

Right on, thank you everyone. I appreciate everybody for helping to clear that up. I'm relieved to hear that my intuition was correct and that I won't be setting myself up for tax problems with my current strategy. I chatted with a few of my closer coworkers and they see red flags from this advisor...
by CnC
Wed May 09, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Breaking Up and Staying On Good Terms with an Advisor
Replies: 28
Views: 3296

Re: Breaking Up and Staying On Good Terms with an Advisor

"Can we still be friends?" I'm getting closer to breaking up with my Ameriprise advisor. I want to stay on good terms with him, because he is my parents' advisor. I'm not involved in their finances and may never be. But it's possible. It's also emotional. He has been my advisor since I was in high ...
by CnC
Tue May 08, 2018 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Living off Dividends of Vanguard Total Stock
Replies: 49
Views: 6932

Re: Living off Dividends of Vanguard Total Stock

I think some responses are grabbing onto the dividend aspect and overlooking that living off total stock dividends implies a 2% withdrawal rate. At a 2% withdrawal rate, Firecalc gives a 100% success rate for 30 years for everything from 100% equities to 100% five year treasuries. (Standard disclai...
by CnC
Tue May 08, 2018 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1277

Re: Will a Roth 401k give you more money in retirement?

I have been thinking about Roth's traditional pretax contributions and I came to a conclusion that had not ever been mentioned that I could see. See Maxing out your retirement accounts and either of the two spreadsheets mentioned in that section. Thanks! This is EXACTLY what I was trying to figure ...
by CnC
Tue May 08, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1277

Re: Will a Roth 401k give you more money in retirement?

nolesrule wrote:
Tue May 08, 2018 11:39 am


You'd also have a lot of room to do Roth conversions in a lower tax bracket than you made the contributions if that was the case.
Is it better to pay nothing on the first 77k of long term capital gains on pay lower taxes on Roth conversions?

The $0 taxes on 77k seems very attractive to me.
by CnC
Tue May 08, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1277

Re: Will a Roth 401k give you more money in retirement?

Your capital gains rate is incorrect, and you are making the assumption that all traditional withdrawals will be withdrawn entirely at the marginal tax rate. Additionally there may be opportunities to reduce taxes, such as Roth conversion in lower income years, or relocating to a lower tax state in...
by CnC
Tue May 08, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1277

Re: Will a Roth 401k give you more money in retirement?

If you have $100 to invest and you're taxed 20% now and in the future, and the investments grow 10%, you end up with these numbers. Traditional Gross: $100 -Taxes (20%): $20 = $80 to invest After 10% growth, you have $88. Roth Gross: $100 After 10% growth, you have $110 - Taxes (20%): $22 = $110 - ...
by CnC
Tue May 08, 2018 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1277

Re: Will a Roth 401k give you more money in retirement?

But wouldn't the taxable account dividends be taxed at the capital gains rate of 15%, not at the income tax rate of 25%? The thing about future tax rates is that they are unknowable. We know what todays tax rates are, but can't know what they will be next year, let alone 30 years from now. Therefor...
by CnC
Tue May 08, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1277

Will a Roth 401k give you more money in retirement?

I have been thinking about Roth's traditional pretax contributions and I came to a conclusion that had not ever been mentioned that I could see. I may be missing something but here goes. Feel free to correct me where I have some flaws. I am not finance expert just a guy thinking about getting to ret...
by CnC
Mon May 07, 2018 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Concerns about RMD for roth vs tIRA contribution
Replies: 37
Views: 2068

Re: Concerns about RMD for roth vs tIRA contribution

It's difficult to offer anything other than general observations, without knowing more about your situation. RMDs can be a big issue if you'll have substantial other income in retirement. If you will primarily be surviving on your portfolio, it will likely be spent down by the time you reach age 70...
by CnC
Mon May 07, 2018 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Fixing An Advisor's Suggested Portfolio
Replies: 4
Views: 691

Re: Fixing An Advisor's Suggested Portfolio

My first take is that you are being extremely conservative in your positions. You don't need "vanguard funds" they are good but any low cost index will perform the same. Honestly this cfp does not appear to know what he was doing. First he put you into funds for a 67 year old retiree. Second, those ...
by CnC
Mon May 07, 2018 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Concerns about RMD for roth vs tIRA contribution
Replies: 37
Views: 2068

Re: Concerns about RMD for roth vs tIRA contribution

I can't tell you what you 'should' do but I can tell you our plans. We are putting: 50% of our savings into pretax 15% of our savings into Roth 35% of our savings into after tax I don't know what the future will hold but with that breakdown we feel like we are getting a good tax break now and will h...
by CnC
Tue May 01, 2018 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: All my eggs in one basket?
Replies: 26
Views: 12922

Re: All my eggs in one basket?

I personally have diversified into the precious metals market lead, copper, brass and dirt incase all my mutual funds go broke.
by CnC
Tue May 01, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 16157

Re: How do you know when you have "won the game"?

Well it's like this. Never grab a hot pan out of a 400 degree oven unless you like to burn yourself. I'm sure there is some odd duck out there who enjoys 3rd degree burns. But the oddities aside I would NEVER suggest it. Was that enough to satisfy your curiosity? No. It seems very myopic to presume...
by CnC
Tue May 01, 2018 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 16157

Re: How do you know when you have "won the game"?

I would NEVER suggest going no risk. Unless you had no desire to leave any kind of legacy for future generations. What does it even mean to say " NEVER " and then to start the very next sentence with "(u)nless"? :annoyed Well it's like this. Never grab a hot pan out of a 400 degree oven unless you ...
by CnC
Tue May 01, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Max out our 457 or 401k
Replies: 4
Views: 594

Re: Max out our 457 or 401k

Same situation unfortunately my advice is to max both. :/ The advantage of the 457 only counts if you are going to retire early and plan to stay in the same job until retirement. We maxed my wife's 401k first then maxed our Roth IRA's (contributions are not taxed when withdrawn) then maxed mine. We ...
by CnC
Tue May 01, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 16157

Re: How do you know when you have "won the game"?

Also when I have confidence in the "when" I won the game, what is the definition of stop playing? Retirement, slowing down at work, exiting the stock market or go low/no risk (ex. CD's), sell the big house and downgrade, sell the business/commercial real estate? Does one retire if they get satisfac...
by CnC
Tue May 01, 2018 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Making the decision to do a Roth Conversion
Replies: 46
Views: 3536

Re: Making the decision to do a Roth Conversion

If you are earning 8% you could convert $240,000 and just be treading water is it really realistic to convert $500,000 a year? How does that work or at that point you just accept that you have lots of money and you will have to pay a big surcharge for social security and Medicare? That may fall und...
by CnC
Fri Apr 27, 2018 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Making the decision to do a Roth Conversion
Replies: 46
Views: 3536

Re: Making the decision to do a Roth Conversion

If you are earning 8% you could convert $240,000 and just be treading water is it really realistic to convert $500,000 a year? How does that work or at that point you just accept that you have lots of money and you will have to pay a big surcharge for social security and Medicare? That may fall und...
by CnC
Fri Apr 27, 2018 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Making the decision to do a Roth Conversion
Replies: 46
Views: 3536

Re: Making the decision to do a Roth Conversion

Just to piggy back on this thread. What do you do if you have a lot of money tax deferred? Say 3 million in today's dollars accounting for inflation. If you are earning 8% you could convert $240,000 and just be treading water is it really realistic to convert $500,000 a year? How does that work or a...
by CnC
Fri Apr 20, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 103
Views: 10165

Re: NYT article: Everyone should hire a financial planner

First, where do you find a good high quality ethical FP. The problem is, once you know enough to determine if a FP is "good", you no longer need a FP. This is 100% true. At best you find out you have a bad one too late. I'm helping out my in-laws who managed returns in the 2% realm last year. When ...
by CnC
Wed Mar 07, 2018 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 11529

Re: Ok fellow bogleheads, was the correction scary or nothing?

There are too many thought out responses to reply to all of them so let me give some general answers. My family is financially sound my career is pretty recession-resistant I am already vested for a pension (I certainly could lose my job but it wouldn't be tied to the economy) we save/invest ±50% of...
by CnC
Wed Mar 07, 2018 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 11529

Re: Ok fellow bogelheads, was the correction scary or nothing?

If that one scared you then you need to prepare yourself because at age 32 I'm pretty sure the worse is yet to come. I tell my stepson who is the same age to only look take a quick look at his 401k when everyone is talking about how good the economy is doing. If everyone is complaining about how ba...
by CnC
Wed Mar 07, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 11529

Re: Ok fellow bogelheads, was the correction scary or nothing?

Anyway not here to argue with anyone, I was just asking if it was anything, the overwelming opinion was no it's not.

Thanks for the response :thumbsup
by CnC
Wed Mar 07, 2018 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 11529

Re: Ok fellow boggelheads, was the correction earlier this year scary?

Actually, that WAS 2008. A recession is when a lot of people are losing their jobs. A depression is when you lost your job, too. Even during a recession, many people are facing their own private depressions. If you were working at a dot com in the late 1990's, that also described the tech crash. I ...
by CnC
Wed Mar 07, 2018 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 11529

Re: Ok fellow boggelheads, was the correction earlier this year scary?

As I said it's the first time that I have "lost" money since I started and I'm trying to get a feel for where this lies on the scale from yawn to white knuckle. It was also the first time that my account balances went down. Which I suppose should make me happy that I finally have enough money in my...
by CnC
Wed Mar 07, 2018 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 11529

Re: Ok fellow boggelheads, was the correction earlier this year scary?

As I said it's the first time that I have "lost" money since I started and I'm trying to get a feel for where this lies on the scale from yawn to white knuckle. This is thus far a complete non-event, though it may or may not be over yet. The worst test for your resolve will be when unemployment cla...
by CnC
Wed Mar 07, 2018 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 11529

Re: Ok fellow boggelheads, was the correction earlier this year scary?

There wasn't an exhaustive selloff so it's hard to get excited either way this this one. But it was a chance to gauge your comfort with your risk tolerance and adjust your portfolio to feel comfortable. You'll be more concerned when a downturn is sustained over time. Just remember your time horizon...
by CnC
Wed Mar 07, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 11529

Ok fellow bogleheads, was the correction scary or nothing?

Hey guys, I know the mantra time in the market not timing, and don't react to the market fluctuations. I am not concerned about any of that. I just an interested in how the market correction felt to fellow boggelheads here. I'm pretty young (32) and I while I have been investing for a while I got se...
by CnC
Tue Feb 27, 2018 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Imrf VAC too good to be true?
Replies: 9
Views: 1402

Re: Imrf VAC too good to be true?

Yes, that is basically the gist of it. Historically i IMRF''s return has been 9.38% annualized and is currently 97% funded (as of the most recent numbers) https://www.imrf.org/en/about-imrf/media-room/imrf-101 Thanks for the heads up. I ultimately decided to throw 10% of my pay in it since I'm maxi...
by CnC
Mon Feb 05, 2018 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Today was a Really Bad Day
Replies: 278
Views: 49227

Re: Today was a Really Bad Day

I'm actually ok with today and last week as long as it quits eventually. I'm 32 and I was tired of most of my investments being at ath.


Hopefully this ±10-15% correction will take the lid off the pot so it doesn't boil over and it won't go through a big long term crash.
by CnC
Mon Jan 29, 2018 2:02 pm
Forum: Investing - Theory, News & General
Topic: Wisdom of Bitcoin
Replies: 90
Views: 7750

Re: Wisdom of Bitcoin

I was a skeptic of bitcoin, until I watched this exteremely thoughtful video on the plusses and minuses of bitcoin. How could I have been so wrong. :shock: :oops: Link - https://www.youtube.com/watch?v=g-zIbVEjVpQ&feature=youtu.be Tip of the hat to Greg Mankiw for directing me to this bitcoin wisdo...
by CnC
Mon Jan 29, 2018 9:44 am
Forum: Investing - Help with Personal Investments
Topic: Allocation Dilemma - Bonds or No Bonds, retiring 8 years @ 50y/o, w/ $ lasting to 90s.
Replies: 65
Views: 5184

Re: Allocation Dilemma - Bonds or No Bonds, retiring 8 years @ 50y/o, w/ $ lasting to 90s.

Yes, he's assuming a constant 8.74% growth every year in the charts. As if you had a savings account that gave you that exact return year after year, with no losses or variation. The way to factor volatility and divergent possible outcomes into a chart would be to show you the 90th to 10th percenti...
by CnC
Fri Jan 26, 2018 5:11 pm
Forum: Investing - Theory, News & General
Topic: Starting to feel like the late 1990s?
Replies: 145
Views: 13894

Re: Starting to feel like the late 1990s?

It's days like this that make me feel I have too much in bonds... or do some market timing :oops: I agree though.. it does feel frothy doesn't it? I will stay the course. Why? Because 2017 went nothing like what I had predicted. January 2018 has also gone nothing like I had predicted. So that conti...
by CnC
Fri Jan 26, 2018 4:45 pm
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 25798

Re: 401k millionaires

I wonder what percentage of people with access to a 401k are maxing it out though? It's got to be low single digits. The median household income in the US is ~$55k. As a family income there is no way most people can max out a 401k. Noone expects the "average" person to max out a 401k. But the top 1...
by CnC
Fri Jan 26, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: Fidelity charging extra fee for Vanguard funds in 401k?
Replies: 31
Views: 2782

Re: Fidelity charging extra fee for Vanguard funds in 401k?

With all do respect, we here invest in the STOCK MARKET everything to do with it is a money grab. That's what for profit businesses do. There is a difference between profit-making and profiteering . If you create a revolutionary new cell phone, but it costs $700 -- I get it. If you sell cable and c...
by CnC
Thu Jan 25, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: Fidelity charging extra fee for Vanguard funds in 401k?
Replies: 31
Views: 2782

Re: Fidelity charging extra fee for Vanguard funds in 401k?

I find the reaction of the Vanguard fans hilarious. Fidelity is not the one selecting the funds in your 401k. Your employer and/or a TPA are the ones selecting the funds. The custodian/record keeper is paid via some combination employer/employee/AUM fees and/or fund revenue sharing. No, but this is...
by CnC
Thu Jan 25, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: Portfolio size needed to reach each tax bracket in retirement
Replies: 19
Views: 3028

Re: Portfolio size needed to reach each tax bracket in retirement

Here in another wrinkle arnt tax brackets adjusted for inflation?

Because most people asking about retirement tax brackets are not retired yet.
by CnC
Thu Jan 25, 2018 1:21 pm
Forum: Investing - Theory, News & General
Topic: Fidelity charging extra fee for Vanguard funds in 401k?
Replies: 31
Views: 2782

Re: Fidelity charging extra fee for Vanguard funds in 401k?

I'm not really sure what the issue is... If your plan is hosted by Fidelity yet all your money is invested in vanguard funds they are presumably out to make some money on it. It doesn't matter where the money gets invested, Fidelity is already making money off the plans--they don't administer 401(k...
by CnC
Thu Jan 25, 2018 12:59 pm
Forum: Investing - Theory, News & General
Topic: Fidelity charging extra fee for Vanguard funds in 401k?
Replies: 31
Views: 2782

Re: Fidelity charging extra fee for Vanguard funds in 401k?

I'm not really sure what the issue is... If your plan is hosted by Fidelity yet all your money is invested in vanguard funds they are presumably out to make some money on it. If vanguard is better why don't 401k plans host through vanguard? Every one has to make money. That's how businesses work. I ...