Search found 131 matches

by runnergirl
Tue Nov 09, 2010 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: How much liability insurance do I need?
Replies: 5
Views: 1224

How much liability insurance do I need?

Is there a formula that I can use to figure out how much to purchase? I currently have $300,000 per occurrence and medical payments to others $1000 per person.
by runnergirl
Tue Nov 09, 2010 2:22 pm
Forum: Personal Investments
Topic: Do you DCA into your asset allocation or lump sum?
Replies: 50
Views: 4172

Opponent Process wrote:if you're a rational investor, lump sum. if you're an emotional investor, DCA.
What is a rational investor as opposed to emotional investor?
by runnergirl
Tue Nov 09, 2010 2:10 pm
Forum: Personal Investments
Topic: Do you DCA into your asset allocation or lump sum?
Replies: 50
Views: 4172

Do you DCA into your asset allocation or lump sum?

If you have a lump sum coming in that is worth about 25% of your portfolio, would you divide the whole sum among your asset allocation or DCA your way in? If DCA, how do you do it?
by runnergirl
Tue Nov 09, 2010 12:22 pm
Forum: Personal Investments
Topic: Is converting to a Roth IRA a good idea in my situation?
Replies: 39
Views: 4992

I checked with my company plan and they do accept incoming rollovers. Do you know where this "special exemption to the pro-rata rule" is found? I'm wondering why I've read so many articles on Roth conversion and never learned about this option until I came on these boards. IRS Publication 590: Tax ...
by runnergirl
Tue Nov 09, 2010 10:43 am
Forum: Personal Investments
Topic: Is converting to a Roth IRA a good idea in my situation?
Replies: 39
Views: 4992

How do I segregate the post-tax and pre-tax portions? I read tfb's blog post about the solo-401K but I don't think that applies to me because I have no self-employed income. Does your company plan accept rollovers from IRAs? It's relatively common. If so, then you roll the taxable part into the com...
by runnergirl
Mon Nov 08, 2010 8:02 pm
Forum: Personal Investments
Topic: Is converting to a Roth IRA a good idea in my situation?
Replies: 39
Views: 4992

The post-tax contribution was $26,000 (not $22,000). I was mistaken.

When I converted my t-IRA to Roth earlier this year, the t-IRA was worth $117,000. Right now it is worth, $130,000 (converted). However, the actual cost basis was $101,000 (a $16K loss).
by runnergirl
Mon Nov 08, 2010 4:23 pm
Forum: Personal Investments
Topic: Is converting to a Roth IRA a good idea in my situation?
Replies: 39
Views: 4992

How do I know how much to put into an incoming rollover to my 401K in order to segregate the pre-tax and post-tax? The t-IRA account had lost about $16,000 from its cost basis at the time I converted. I also put in $26,000 post-tax. I can't tell how much value I lost off of that $26,000 post-tax mon...
by runnergirl
Mon Nov 08, 2010 12:01 pm
Forum: Personal Investments
Topic: Is converting to a Roth IRA a good idea in my situation?
Replies: 39
Views: 4992

Unfortunately, both our IRA's have commingled pre-tax and post-tax. Yes, the 529's for the kids are already funded enough for them to go to a 4-year in-state school. They are still young enough that I can't tell whether they are headed to an Ivy League and we got a late enough start on retirement fu...
by runnergirl
Mon Nov 08, 2010 11:27 am
Forum: Personal Investments
Topic: Is converting to a Roth IRA a good idea in my situation?
Replies: 39
Views: 4992

Re: Is converting to a Roth IRA a good idea in my situation?

I used the Fidelity and Schwab Roth calculators and they both said that in my situation I would come out ahead if I converted. Assumptions are that I retire at age 65 and got a 7.6% return. I would come out ahead if my tax bracket stayed the same, went up, or even if they went down to 28%. Do you d...
by runnergirl
Mon Nov 08, 2010 10:27 am
Forum: Personal Investments
Topic: Is converting to a Roth IRA a good idea in my situation?
Replies: 39
Views: 4992

I wouldn't convert the pre-tax portion. Isolating the post-tax contributions by moving the pre-tax portion to a qualified plan, yes. Ongoing backdoor Roth, yes. Existing pretax money, not at this rate. The market went up is irrelevant, as Wagnerjb pointed out. It went up, and it can easily go down ...
by runnergirl
Sat Nov 06, 2010 3:24 pm
Forum: Personal Investments
Topic: Is converting to a Roth IRA a good idea in my situation?
Replies: 39
Views: 4992

Is converting to a Roth IRA a good idea in my situation?

This question comes out of another thread I posted. Someone (Bob is not my name) said that he doesn't understand why I would want to convert to a Roth IRA in my situation. I want to hear the opinions of everyone else, for or against. Thankfully, I still have time to recharacterize if I made a mistak...
by runnergirl
Fri Nov 05, 2010 3:35 pm
Forum: Personal Investments
Topic: Where to park tax money for Roth Conversion?
Replies: 14
Views: 1480

Would you be able to point me to some of these threads? I am new here and did not see them. One concern is that if I wait for one of those scenarios, my stocks might have appreciated considerably. They have already appreciated a lot since I converted, but due to the lost decade, they have not gone u...
by runnergirl
Fri Nov 05, 2010 3:03 pm
Forum: Personal Investments
Topic: Where to park tax money for Roth Conversion?
Replies: 14
Views: 1480

Bob, I would wait and see what the taxes do before deciding to pay in 2010 or 2011/2012. If they go up, I'll pay all in 2010. If they stay the same, I can hold on to the money, get a little interest, and then pay later. I do expect RSU's/ESPP/etc. in 2012 as well, but not enough to push me over, I d...
by runnergirl
Fri Nov 05, 2010 2:19 pm
Forum: Personal Investments
Topic: Where to park tax money for Roth Conversion?
Replies: 14
Views: 1480

No, I'm questioning why you're putting the Roth conversion income in 2011 where it will pile on top of the RSU income. I see. If I attribute the conversion to 2010 taxes, that would bump me up to the top tax bracket for 2010. Next year, no matter what, because of that restricted stock, I will be bu...
by runnergirl
Fri Nov 05, 2010 1:29 pm
Forum: Personal Investments
Topic: Is Vanguard 2040 a good option for 401K?
Replies: 10
Views: 1876

Thanks for the advice. I like JCompton's advice to look at the underlying funds. The funds are all that I own or plan to own so I can incorporate that into part of the "pie" and pick a target fund with a higher bond ratio (like 2025) so as to leave more room for tax efficient funds in my taxable acc...
by runnergirl
Fri Nov 05, 2010 1:03 pm
Forum: Personal Investments
Topic: Where to park tax money for Roth Conversion?
Replies: 14
Views: 1480

That's true. I will be getting 125K in additional income early next year. But I want to place the tax money for the Roth conversion in a safe but money earning (even if a little) place before I fork it over to Uncle Sam.
by runnergirl
Fri Nov 05, 2010 12:40 pm
Forum: Personal Investments
Topic: Is Vanguard 2040 a good option for 401K?
Replies: 10
Views: 1876

The prospectus for 2040 said the fund is good for people planning to retire 2036-2040. If I were to retire at 65 or 66 it would be around 2035/2036. The 2035 fund isn't that much different from 2040 with Vanguard Total Stock Market Index Fund Investor Shares 71.7% Vanguard Total Bond Market II Index...
by runnergirl
Fri Nov 05, 2010 12:20 pm
Forum: Personal Investments
Topic: Is Vanguard 2040 a good option for 401K?
Replies: 10
Views: 1876

Is Vanguard 2040 a good option for 401K?

Hi, I am new to these forums and just starting to read the Bogleheads book. I am 40 years old, married, 38% federal/state tax bracket. Have 6 months emergency fund, no debts except for 15-yr, 3.875 mortgage of 370K My 401K represents 1/3 of my 300K + portfolio. The choice of investments include the ...
by runnergirl
Fri Nov 05, 2010 10:39 am
Forum: Personal Investments
Topic: Where to park tax money for Roth Conversion?
Replies: 14
Views: 1480

Where to park tax money for Roth Conversion?

I did a Roth conversion this year from some roll-over IRA's and will be incurring approximately 35K in taxes. I plan to take the opportunity to spread out the tax payments over 2011 and 2012. [ Speculation on possible legislation not allowed. Removed by Mod .] Where should I park the tax money? It i...
by runnergirl
Fri Nov 05, 2010 10:28 am
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

Perfect explanations about leveraging. I'm starting to understand.
by runnergirl
Fri Nov 05, 2010 9:53 am
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

So if the strike price is $30 and the stock is worth $43, what is the amount of leverage? What if the strike price is $41 and the stock is worth $43? Honestly, I don't even know what "leverage" means and why it matters. The industry is not a growth industry, but more of a stable, dividend paying sto...
by runnergirl
Fri Nov 05, 2010 8:42 am
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

Do you know whether you get dividends on unexercised stock options? The stock has a pretty high yield (around 7-8%) and I've been getting quarterly dividend checks on at least the restricted stock amount, but don't know whether the stock options are also providing dividend. If so, maybe the dividend...
by runnergirl
Fri Nov 05, 2010 8:04 am
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

Thanks for the explanations. I need to read that book on options.
by runnergirl
Thu Nov 04, 2010 10:06 pm
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

Suppose your strike price is $30, and the market price is $33 when your options vest. If you sell immediately, your profit is $3. Ignoring taxes for now, if you reinvest in S&P 500 and S&P 500 goes up 10% in a year, your profit has become $3.30. Now, if you didn't sell and your employer's stock als...
by runnergirl
Thu Nov 04, 2010 8:55 pm
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

Thanks for all the advice thus far everyone. If my RSU's are taxed at vesting anyway, then the smartest thing to do would be to sell them all and put them into my asset allocation mix right? And my stock options are nonqualified, so that also means I should take the profit at vesting and reinvest t...
by runnergirl
Thu Nov 04, 2010 7:12 pm
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

Thanks for bringing up ESPP. I had forgotten all about that. I put in the maximum allowed annually for ESPP. The money is taken out of the paycheck and then every 6 months, the company will take the money and buy the company stock at a 15% discount. If I sell on that day, I will be taxed on the 15% ...
by runnergirl
Thu Nov 04, 2010 6:28 pm
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

RSUs have no tax benefits whatsoever. You are taxed at marginal rate plus FICA at the time of vesting. You don't have a choice. It doesn't matter if you sell or not. Holding equals using a cash bonus to buy shares. Unless you view the shares as undervalued and you want to invest in them if you get ...
by runnergirl
Thu Nov 04, 2010 2:58 pm
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

@ pshonore thanks for explaining the put options to me. i am fairly new to investing and have never done anything more than buy mutual funds. the stock is publicly traded on the NYSE. can you buy put options on both stock options and restricted stock? where do i go to buy these? i have brokerage acc...
by runnergirl
Thu Nov 04, 2010 2:27 pm
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

Approximately 102K in restricted stocks, and 14K in stock options (exercisable value).

What does it mean to buy options?

I believe the brokerage automatically deducts the amount of taxes owed from the gross amount and gives me a check net of taxes.
by runnergirl
Thu Nov 04, 2010 2:03 pm
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

When to sell 125K + in company stock

It would be over 13% of my net worth.
by runnergirl
Thu Nov 04, 2010 1:27 pm
Forum: Personal Investments
Topic: When to sell 125K + in company stock
Replies: 44
Views: 4103

When to sell 125K + in company stock

Next spring, I have vesting over 125K in company stock (restricted stock and stock options). I am in the second highest tax bracket. Should I sell right away and pay the ordinary income tax rate (and push myself up to the top bracket)? or sell enough to not hit the top bracket and sell the rest in 2...