Search found 289 matches

by Third Son
Wed Jan 08, 2020 8:43 pm
Forum: Personal Investments
Topic: 2 fund plan with Fidelity?
Replies: 13
Views: 1366

Re: 2 fund plan with Fidelity?

I am approaching retirement. I have bulk of savings in a 401k and a tIRA (Raymond James). I've been following the Bogle philosophy of simple investing in low fee index funds. I would like to move all my savings into a 2, maybe 3, fund account. Vanguard has VTSAX, VTIAX, and VBTLX. I would like to g...
by Third Son
Tue Jan 07, 2020 6:12 pm
Forum: Investing - Theory, News & General
Topic: Does pulling money out because of fear make the market go down?
Replies: 79
Views: 6050

Re: Does pulling money out because of fear make the market go down?

Thanks everyone, but for now I'm gonna stick with my 4 funds. I have them across 2 accounts. A Roth and a taxable. I'm only in the 12% bracket so the taxable works ok for now. I have the FXAIX S&P 500 index fund (Fidelity) and the FXNAX bond index fund in taxable and in the Roth I am 100% equit...
by Third Son
Tue Jan 07, 2020 4:22 pm
Forum: Investing - Theory, News & General
Topic: How is your "number" defined?
Replies: 179
Views: 15864

Re: How is your "number" defined?

I am retiring in 52 days-7hours-42min-.......and 23sec. I will have enough income to provide my current take home plus insurance and some to reinvest. We live a modest lifestyle with no debt. By doing the math at Fidelity we mapped it all out. That was the most important part. [OT comment removed by...
by Third Son
Mon Jan 06, 2020 8:44 am
Forum: Personal Investments
Topic: Roth Conversion Tax Question
Replies: 9
Views: 508

Re: Roth Conversion Tax Question

My funds are much simpler than what you describe in the linked thread. I am not that complex.... Thanks. I did not know that from reading your first post. :) No problem and thank you. I want to continue to tap the collective wisdom here as I move into retirement. It has calmed my nerves immensely. ...
by Third Son
Mon Jan 06, 2020 8:33 am
Forum: Personal Investments
Topic: Roth Conversion Tax Question
Replies: 9
Views: 508

Re: Roth Conversion Tax Question

How did you skip tax brackets with only 80K in taxable income? I wrote about it: https://www.bogleheads.org/forum/viewtopic.php?t=295815 Based on my analysis, I decided to not convert enough to get into the 37% marginal income tax range for me, so I had to have less than $80K in taxable income. I d...
by Third Son
Mon Jan 06, 2020 8:23 am
Forum: Personal Investments
Topic: Roth Conversion Tax Question
Replies: 9
Views: 508

Re: Roth Conversion Tax Question

The top of the Federal 12% bracket MFJ for 2020 is $105,051, less Standard Deduction of $24,800 leaves $80,251 available to fill. $105,051 - $57,400 = $47,651 headroom for conversion. That would land you at $80,251 in taxable dollars at the top of the 12% bracket. Unless you are trying to control s...
by Third Son
Mon Jan 06, 2020 8:21 am
Forum: Personal Investments
Topic: Roth Conversion Tax Question
Replies: 9
Views: 508

Re: Roth Conversion Tax Question

There is totally not enough information in this post to know. I will repeat what I have written the last dozen times this has been asked: Please use your tax-prep software to model this Roth conversion. When I modeled my 2019 Roth conversion I found that I went from 12%, skipped the 22%, the 24%, t...
by Third Son
Mon Jan 06, 2020 7:53 am
Forum: Personal Investments
Topic: Roth Conversion Tax Question
Replies: 9
Views: 508

Roth Conversion Tax Question

Good morning, To follow up yesterday's questions here I was hoping I could maybe get some guidance on tax implications of my situation. I am retiring Feb 29 and will have had my first two month's salary and bonus go directly to my Roth. I would like to fill up the remainder 12% bracket with a Roth c...
by Third Son
Mon Jan 06, 2020 5:32 am
Forum: Personal Investments
Topic: Can I retire (early)?
Replies: 49
Views: 6351

Re: Can I retire (early)?

Hi, Sorry for another "Can I retire" post, but I am burnt out and I think I need to head for the exit. I am 53, single, no kids, Software Engineer working/living in the SF Bay Area making ~250K/year + RSUs. I have no debt, and I don't own a house (I rent). I am also a part time caregiver ...
by Third Son
Sun Jan 05, 2020 2:27 pm
Forum: Personal Investments
Topic: Roth Conversions and Living in Retirement
Replies: 11
Views: 1274

Re: Roth Conversions and Living in Retirement

Yes that was the point of my initial question. If I run out of taxable monies and have to start drawing on the IRA after 2 years, a Roth conversion won't work since the amount converted at the 12% bracket will be pretty much what I need to live off of. Where does my income come from? Should I conve...
by Third Son
Sun Jan 05, 2020 2:02 pm
Forum: Personal Investments
Topic: Roth Conversions and Living in Retirement
Replies: 11
Views: 1274

Re: Roth Conversions and Living in Retirement

Thanks Chip....The real question is do I convert 12% and then live off of Roth monies? I ask this question because by converting at 12%, this gets me to close to the $80K I would like to use each year after my transition cash runs low (age 60-67). I'm probably not understanding you here, but if you...
by Third Son
Sun Jan 05, 2020 11:13 am
Forum: Personal Investments
Topic: Roth Conversions and Living in Retirement
Replies: 11
Views: 1274

Re: Roth Conversions and Living in Retirement

Good Morning BH community, I have been trying to get my own Boglehead around how to live off of my retirement while still doing Roth conversions in my 60s. I will be retiring in Feb 2020 : age 60; I would like to delay SS until full retirement age. We would like to have $80K spending in our first y...
by Third Son
Sun Jan 05, 2020 9:40 am
Forum: Personal Investments
Topic: Roth Conversions and Living in Retirement
Replies: 11
Views: 1274

Re: Roth Conversions and Living in Retirement

Chip gave you really good advice. In your situation, it does make sense to do Roth conversions. The decision gets more complicated when your sources of income are generating an income equal to, or greater than, when you were working. Chip also points out the scenario when filing single. It’s import...
by Third Son
Sun Jan 05, 2020 9:39 am
Forum: Personal Investments
Topic: Roth Conversions and Living in Retirement
Replies: 11
Views: 1274

Re: Roth Conversions and Living in Retirement

I think you have it figured out. Many of the discussions here about Roth conversions in early retirement presuppose a taxable account large enough to fund both the tax on Roth conversions AND living expenses. I would suggest projecting out what your account balances will be at age 70-72, then creat...
by Third Son
Sun Jan 05, 2020 8:12 am
Forum: Personal Investments
Topic: Roth Conversions and Living in Retirement
Replies: 11
Views: 1274

Roth Conversions and Living in Retirement

Good Morning BH community, I have been trying to get my own Boglehead around how to live off of my retirement while still doing Roth conversions in my 60s. I will be retiring in Feb 2020 : age 60; I would like to delay SS until full retirement age. We would like to have $80K spending in our first ye...
by Third Son
Wed Dec 25, 2019 9:16 pm
Forum: Investing - Theory, News & General
Topic: 59.5 asset allocation
Replies: 24
Views: 2890

Re: 59.5 asset allocation

Fishing2retire wrote: Wed Dec 25, 2019 5:08 pm Just curious how many people at 59.5 on what there AA is will be or was when starting to make withdrawals?
I turned 60 yesterday. I am at 40/60. This will most likely drift up to 50/50 at some point in the near future.
by Third Son
Wed Dec 25, 2019 8:00 pm
Forum: Investing - Theory, News & General
Topic: My Christmas Gift to You Seventy-Five Years Ago
Replies: 74
Views: 7252

Re: My Christmas Gift to You Seventy-Five Years Ago

Bogleheads: I want to thank nedsaid for resurrecting my Christmas Gift in an earlier post. I will add a personal comment: Exactly seventy-five years ago on Christmas Eve , I was very cold and trying to sleep in my snow-covered foxhole on the edge of Bastogne, Belgium. Bastogne was a very important ...
by Third Son
Tue Dec 24, 2019 7:55 pm
Forum: Investing - Theory, News & General
Topic: If You Only Invest in an Index, You’ll Never Beat It
Replies: 100
Views: 10497

Re: If You Only Invest in an Index, You’ll Never Beat It

Barron's has an interesting article in their 12/20/2019 edition: Master Stockpicker Peter Lynch: If You Only Invest in an Index, You’ll Never Beat It https://www.barrons.com/articles/master-stockpicker-peter-lynch-if-you-only-invest-in-an-index-youll-never-beat-it-51576874071?mod=article_signInButt...
by Third Son
Tue Dec 24, 2019 3:09 pm
Forum: Personal Investments
Topic: Need to get back into the Market. When and how?
Replies: 50
Views: 3120

Re: Need to get back into the Market. When and how?

I am slowly learning the Boglehead way and getting my accounts in order to prepare for retirement. In doing so, I need to take a large sum of my 401k I have had sitting in cash for some time and put it back into the market, currently planned for Vanguard Index Funds. This cash came from me panickin...
by Third Son
Mon Dec 23, 2019 9:03 am
Forum: Investing - Theory, News & General
Topic: How can index fund expense ratios be so low?
Replies: 12
Views: 1117

How can index fund expense ratios be so low?

Good morning! I was wondering if you folks could explain how an Index Fund Provider like Vanguard or Fidelity can offer Total Market Funds with such low expense ratios? for example: VBTLX: ER=0.05% VTSAX: ER=0.04% Isn't some sort of active management going on at some level to keep these funds indexe...
by Third Son
Sat Dec 21, 2019 6:49 am
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 284
Views: 37823

Re: What is your AA, given your age? and, Why?

I thought I would bump his thread since it will be soon a milestone for me. 60 next week, retiring Feb 29th 2020 after 36yrs at Megacorp $2.5M 35/65 in IRA and Roth (Fidelity total market index, bond index) $200K taxable $120K cash Expect SS at 65 (or 66-2/3)or so...not before.... No debt I have the...
by Third Son
Wed Dec 18, 2019 3:55 pm
Forum: Personal Investments
Topic: Fidelity "go ahead" free consultation: expectations?
Replies: 7
Views: 753

Re: Fidelity "go ahead" free consultation: expectations?

Have Fidelity for work-place accounts. Received a postcard in mail suggesting a "free consultation" for financial planning. This does not appear to be the robo-advisor Fidelity Go division, just workplace retirement dept. https://www.fidelity.com/go/free-consult-TEM Looks like appointment...
by Third Son
Wed Dec 18, 2019 1:33 pm
Forum: Personal Investments
Topic: Fidelity "go ahead" free consultation: expectations?
Replies: 7
Views: 753

Re: Fidelity "go ahead" free consultation: expectations?

Have Fidelity for work-place accounts. Received a postcard in mail suggesting a "free consultation" for financial planning. This does not appear to be the robo-advisor Fidelity Go division, just workplace retirement dept. https://www.fidelity.com/go/free-consult-TEM Looks like appointment...
by Third Son
Sun Dec 15, 2019 6:42 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

... Can I ask what your aversion to FTIHX (Fidelity® Total International Index Fund) is? Terminology. An allocation to TISM is based on total equities, not total investments. E.G., a 10% allocation to TISM means 10% of equities is in TISM, 90% of equities is in TSM. TISM allocation in total investm...
by Third Son
Sun Dec 15, 2019 7:50 am
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

Good Morning, Having recently joined this forum and read many books including Bogleheads' Three Fund Portfolio, Coffeehouse investor etc... I have some questions that It think I know the answers to but would like some advice/ encouragement. I am retiring February 2020 @ age 60, wife @ 58 MFJ SS @ 6...
by Third Son
Sat Dec 14, 2019 7:10 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

Cheez-It Guy wrote: Sat Dec 14, 2019 6:16 pm Image
Ron Popeil is the bomb!
by Third Son
Sat Dec 14, 2019 6:57 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

Thanks for the replies so far. I agree 90% is way too aggressive. 40% bonds seems right. Since I am getting the lump sum in cash, I will be able to rebalance appropriately. I just have a hard time convincing myself that this will generate enough income to get me through the next 20-30 years. The ma...
by Third Son
Fri Dec 13, 2019 9:07 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

Investment types: recommended bonds (taxable and muni), recommended equities, recommended alternative investments (REIT,...). Investment account types: tax-deferred, taxable, tax-free. After you think about it for a while, you will come to understand that there is a hierarchy of "goodness"...
by Third Son
Fri Dec 13, 2019 9:04 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

... Thanks for your reply. Not sure why your option is better. .... What are the benefits of foreign debt securities? You chose them so assumed you knew. (I just looked up and wrote down the fund descriptions since they were not familiar to me.) Sorry, I was referring to the Franklin Funds you ment...
by Third Son
Fri Dec 13, 2019 6:32 am
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

I would buy a single premium immediate annuity, with inflation adjustment, sufficient to cover your bare minimum monthly expenses. 60/40 or even 50-50 for the remainder of the portfolio. Also recommend that you rebalance right away, rather than putting this off awaiting retirement distributions. Si...
by Third Son
Fri Dec 13, 2019 6:31 am
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

... Thanks for your reply. Not sure why your option is better. As explained above: --TSM/TISM in tIRA lose QDI/LTCG tax benefits, taxed as ordinary income, 12% in your retirement tax bracket. --TSM/TISM in taxable/rIRA keep QDI/LTCG tax benefits---tax at 0% in your 12% retirement tax bracket. --QDI...
by Third Son
Thu Dec 12, 2019 5:32 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

Thanks for all the great replies...after further deep thought I have decided. I am with Fidelity because that is where Megacorps 401K was established. I like it there. t-IRA 40% FSKAX Fidelity Total market index (TSM) 10% FTIHX Fidelity total international index (TISM) 50% FXNAX Fidelity US bond in...
by Third Son
Thu Dec 12, 2019 9:52 am
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

Thanks for all the great replies...after further deep thought I have decided. I am with Fidelity because that is where Megacorps 401K was established. I like it there.

t-IRA
40% FSKAX
10% FTIHX
50% FXNAX

Roth
90% FSKAX
10% FTIHX

SS@ 66-2/3 to get full benefit

Let it ride.....
:beer
by Third Son
Tue Dec 10, 2019 6:14 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

Thanks for the valuable information so far. I should also mention that I will be doing some modest roth conversions over the next ten years as well.
by Third Son
Tue Dec 10, 2019 4:14 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

There is a break even age in my mid 70s that makes it a wash for me. I am pretty sure my funds will last. If I have to worry about it that hard, I haven't saved enough. I mentioned it was negotiable (to me) so I will have two years to evaluate. That is when I turn 62. I can remove that from the over...
by Third Son
Tue Dec 10, 2019 1:30 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

SS is a no brainer to me since I would prefer the money sooner than later. :moneybag
by Third Son
Tue Dec 10, 2019 12:27 pm
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Re: Set it and Forget it?

Thanks for the replies so far. I agree 90% is way too aggressive. 40% bonds seems right. Since I am getting the lump sum in cash, I will be able to rebalance appropriately. I just have a hard time convincing myself that this will generate enough income to get me through the next 20-30 years. The mat...
by Third Son
Tue Dec 10, 2019 10:41 am
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4584

Set it and Forget it?

Good Morning, Having recently joined this forum and read many books including Bogleheads' Three Fund Portfolio, Coffeehouse investor etc... I have some questions that It think I know the answers to but would like some advice/ encouragement. I am retiring February 2020 @ age 60, wife @ 58 MFJ SS @ 62...