Search found 4570 matches

by Peter Foley
Sun Sep 09, 2018 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Parents with Retirement
Replies: 34
Views: 4035

Re: Helping Parents with Retirement

In response to your questions: 1. I would be tempted to use a short term bond fund or a CD ladder for part of their bond allocation. Going that route would provide a bit more inflation protection. 2. This depends on their marginal tax rate. If they are in the 12% bracket, withdrawals from taxable if...
by Peter Foley
Sat Sep 08, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Helping my dad with his IRA
Replies: 16
Views: 1287

Re: Helping my dad with his IRA

I would suggest splitting the money up and doing a relatively short term CD ladder. Part of the money could go into an on line savings account and the rest in a couple different term CDs. Ally Bank is usually quite competitive in term of rates.
by Peter Foley
Sat Sep 08, 2018 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: New to Donor Advised Funds, need guidance
Replies: 22
Views: 1598

Re: New to Donor Advised Funds, need guidance

jebmke wrote: If you have an IRA, keep in mind that Qualified Charitable Distributions can be made from IRAs once you reach RMD age. For some people this is a more effective way to give to charity at that point. So, as you look at funding your DAF, think about whether you want to fund it for donatio...
by Peter Foley
Sat Sep 08, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Confirmation on backdoor Roth withdrawals of contribution
Replies: 19
Views: 892

Re: Confirmation on backdoor Roth withdrawals of contribution

I found your question confusing. For those pre 59.5, these are the rules: UNDER AGE 59.5 FIVE YEAR CONVERSION HOLDING PERIOD NOT MET Contributions: Tax-No; Penalty-No Conversions: Tax-No; Penalty-Yes (Taxable Portion) Conversions: Tax-No ;Penalty-No (Nontaxable Portion) Earnings: Tax-Yes; Penalty-Ye...
by Peter Foley
Thu Sep 06, 2018 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Year End Roth Moves
Replies: 10
Views: 1264

Re: Year End Roth Moves

Addressing the question "Convert TIRA or 401k?" I would be inclined to hold on to at least some the 401k if you have access to a good stable value fund. A stable value fund that pays in excess of the rate of inflation is a good counterbalance to a total bond fund that might take a bit of a hit if in...
by Peter Foley
Thu Sep 06, 2018 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on asset allocation
Replies: 8
Views: 945

Re: Advice on asset allocation

Personal opinion - I think an asset allocation in the range of 60/40 to 40/60 is about right for someone your age who intends to work 10 more years. While I would favor the higher end of that allocation for the next 5 years, I concur with your assessment that you don't have to take a lot of risk. I ...
by Peter Foley
Wed Sep 05, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: How to model a portfolio
Replies: 10
Views: 796

Re: How to model a portfolio

I will rephrase this a bit. Is there a site where you can plug in a portfolio and see how it did for the past 30 years? Portfolio Visualizer can do backtesting. www.portfoliovisualizer.com I'm personally not aware of any site that can model a return over the next 30 years. There are aspects of the R...
by Peter Foley
Wed Sep 05, 2018 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Time to look at SS [When should I take Social Security?]
Replies: 55
Views: 5121

Re: Time to look at SS

One consideration that does not often come up in these discussions is one's birthday. If you have a birthday late in the year and are doing Roth conversions, it may be to your advantage taxwise to wait until the next year. This is especially true if you are in one of the income windows where SS Bene...
by Peter Foley
Thu Aug 30, 2018 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 34
Views: 2732

Re: Roth IRA 5 year rule

Here is the table version of the Roth Conversion chart that many here reference: Re: Roth IRA Rules - Table Approach Posted by: KAWill (IP Logged) Date: October 14, 2010 11:57PM Roth IRA Distribution Table UNDER AGE 59.5 FIVE YEAR CONVERSION HOLDING PERIOD NOT MET Contributions: Tax-No; Penalty-No C...
by Peter Foley
Thu Aug 30, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Inheritance—Advice Requested
Replies: 63
Views: 7000

Re: Inheritance—Advice Requested

Fianna wrote: With so much unknown, it is helpful for me to hear general rules of thumb as well as specific pieces of advice. For now, it seems that converting pieces of the tax-deferred accounts to Roth but staying inside my tax bracket is a good way to go. With so many unknowns, including health a...
by Peter Foley
Wed Aug 29, 2018 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: high RMD withdraw from 401k question
Replies: 31
Views: 3377

Re: high RMD withdraw from 401k question

You need a withdrawal strategy and spending plan. You can do it in a spreadsheet as Celia suggests or just write it out in a Word document. As Alan suggests you need to level out your tax obligations over the next decade or so. I use a running 5 year plan. It looks like this: 2017: Assumption – Husb...
by Peter Foley
Tue Aug 28, 2018 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Need your advice , please
Replies: 12
Views: 1613

Re: Do I have it right

There are a number of approaches to investing the Boglehead way. What follows is just a bit of background. One of the first things to do is determine your asset allocation. It should be based on your ability to take risk, your need to take risk, and your willingness to take risk. Use low cost index ...
by Peter Foley
Tue Aug 28, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Financing college, gifting to children, capital gains
Replies: 13
Views: 798

Re: Financing college, gifting to children, capital gains

I'm not following some of this either. Do note that the gift exclusion is $15,000 per individual in 2018. That means each parent could gift each child $15,000. Leaving the 529 plan discussion aside, there are many ways to work with this approach. A Uniform Gift to Minors Act account would be a start...
by Peter Foley
Mon Aug 27, 2018 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance—Advice Requested
Replies: 63
Views: 7000

Re: Inheritance—Advice Requested

Wow! Inherit a good chunk of money and the advice pours in. Most of it on target with how I would suggest approaching this. Just a few tidbits: I agree with retiredjg's first two points. (I don't disagree with the third but the first two are really spot on.) Yes put the bonds in tax deferred. You ha...
by Peter Foley
Mon Aug 27, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing question...
Replies: 15
Views: 667

Re: Rebalancing question...

If you have a 457 account, all you bond allocation should be there (tax deferred) with the Roth being entirely stock mutual funds (tax free). While you might want to change the mix you have in the two accounts to accomplish the above, you are no where close to needing to rebalance for AA purposes. I...
by Peter Foley
Sun Aug 26, 2018 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: When I die, what % of expenses should my survivor assume
Replies: 16
Views: 1886

Re: When I die, what % of expenses should my survivor assume

dodecahedron: I have much more limited experience in this aspect of finance and taxes than you do, so please let me know if this scenario is unusual. In the year the spouse passes, the tax bill may be substantially less because some SS benefits or perhaps pension benefits (50% survivor benefits is n...
by Peter Foley
Sun Aug 26, 2018 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Re: Need advise with the investment Plan
Replies: 8
Views: 804

Re: Need advise with the investment Plan

The array of funds you listed and the percentages you propose are all very mainstream. I see no problems there. Ac Camillus infers, the issue not addressed is where to hold these funds. At a minimum, bond funds are better held in a tax deferred account if you have one. Picking funds is only part of ...
by Peter Foley
Sat Aug 25, 2018 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: IRA inherited from younger spouse
Replies: 25
Views: 2552

Re: IRA inherited from younger spouse

I find this to be an interesting discussion. I'm going to do a session at a upcoming BH meeting and beneficiary designations and inheriting IRAs is one of the topic I will cover. I have found it confusing in my research as well.
by Peter Foley
Fri Aug 24, 2018 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Withdrawal Inquiry
Replies: 7
Views: 680

Re: IRA Withdrawal Inquiry

I can't see any reason to take withdrawals from the traditional IRA in lieu of the inherited IRA.
by Peter Foley
Thu Aug 23, 2018 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation
Replies: 6
Views: 551

Re: Bond Allocation

Personal opinion. I think you are fine.

There was a long recent thread about age in bonds not being a good rule of thumb. Among the many, many opinions and analyses, one person did a study showing that age - 18 in bonds was ideal.
by Peter Foley
Wed Aug 22, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend Reinvestment
Replies: 7
Views: 664

Re: Dividend Reinvestment

I have no problem with reinvesting dividends and capital gains until one nears the time where withdrawals from the stock/mutual fund holdings are likely. At that point you want all of your gains to be long term capital gains for tax simplicity if nothing else. In some circumstances it would make sen...
by Peter Foley
Wed Aug 22, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Am I Wrong for being 100% Equities ?
Replies: 62
Views: 5810

Re: Am I Wrong for being 100% Equities ?

In the eyes of many people, myself included, you've "won the game". Given that, why not take 5 years of cash needs in retirement off the table?

You do not "need" to take the level of risk that a 100% stock portfolio entails.
by Peter Foley
Mon Aug 20, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Naive rebalancing question
Replies: 16
Views: 1372

Re: Naive rebalancing question

Hi Rob. Yes as others have stated one would rebalance both on market ups and downs. I don't know if you have ever looked at it closely, but when one has a fairly moderate AA it really takes a lot of market movement to trigger a 5% band. The last time I rebalanced during a market downturn was in 2008...
by Peter Foley
Sun Aug 19, 2018 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Your major and investing/finance?
Replies: 99
Views: 5164

Re: Your major and investing/finance?

BA in Spanish, minor in education MA in Spanish Literature, minor in education PhD Hispanic Linguistics There is a fair amount of psychology required for teaching, my first career. Behavioral psychology, some statistics and math were integral to the process management and personnel management (total...
by Peter Foley
Thu Aug 16, 2018 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawal rate and tax-adjusted asset allocation
Replies: 6
Views: 782

Re: Withdrawal rate and tax-adjusted asset allocation

I would not take a withdrawal rate and apply it across taxable, tax deferred and tax free. My starting point would be how much do I need to take from my retirement portfolios to cover my annual expenses. (Annual expenses - SS benefits - pension = gap which needs to be filled from retirement savings....
by Peter Foley
Thu Aug 16, 2018 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth conversions a no-brainer for me?
Replies: 22
Views: 2263

Re: Are Roth conversions a no-brainer for me?

I would be inclined to do Roth conversions to the top of the 12% bracket prior to taking SS benefits. You don't mention what your annual living expenses are. My guess is that once you start taking SS benefits you will have some combination of ss benefits + pension + taxable account or deferred accou...
by Peter Foley
Thu Aug 16, 2018 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Advice on re-balancing efforts
Replies: 6
Views: 727

Re: Advice on re-balancing efforts

Prior exchange: Peter Foley wrote: ↑Wed Aug 15, 2018 8:17 pm The easiest way to do this with your current holdings is to change your wife's Target Retirement account to an earlier date with a higher percentage of bond holdings. Blimpalot Thanks. But I don't think that will quite work. The Target Dat...
by Peter Foley
Wed Aug 15, 2018 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Cash or mortgage for house entering retirement?
Replies: 10
Views: 846

Re: Cash or mortgage for house entering retirement?

My personal preference is to be debt free. However, would this essentially exhaust your taxable account? If, yes, and if you are heavily invested in tax deferred with little or nothing in a Roth, it might be to your advantage to hold some cash in taxable for Roth conversions. There are a lot of "ifs...
by Peter Foley
Wed Aug 15, 2018 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Need basic advice on organizing portfolio
Replies: 9
Views: 1098

Re: Need basic advice on organizing portfolio

With your assets I would talk to someone at Schwab, Vanguard or Fidelity and ask them for a recommendation for a balanced portfolio with a XX/XX asset allocation invested in low cost index funds. With Schwab you could probably meet with someone in person if you sere serious about transferring your a...
by Peter Foley
Wed Aug 15, 2018 8:33 pm
Forum: Personal Consumer Issues
Topic: Plan us a trip !
Replies: 17
Views: 2139

Re: Plan us a trip !

I think any trip destination should consider what activities are available for your children and what might you expect them to remember. No way I would do Costa Rica. (I was just there last January and not a good place for small children.) You do not want to do long airline flights and have long cus...
by Peter Foley
Wed Aug 15, 2018 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: "Open Social Security" calculator: feature requests, bug reports, etc
Replies: 242
Views: 22370

Re: "Open Social Security" calculator: feature requests, bug reports, etc

tc101 wrote: Given the factors I mentioned in the last post, I wonder how useful this calculator is? It might lead to more confusion than clarity for most people, and might lead to some people taking SS earlier than would be best for them. What it calculates is just one minor part of the info to be ...
by Peter Foley
Wed Aug 15, 2018 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on re-balancing efforts
Replies: 6
Views: 727

Re: Advice on re-balancing efforts

The easiest way to do this with your current holdings is to change your wife's Target Retirement account to an earlier date with a higher percentage of bond holdings.
by Peter Foley
Wed Aug 15, 2018 4:19 pm
Forum: Personal Consumer Issues
Topic: Books - Your 3 Best - (Nonfiction, Fiction, Financial/Investing)
Replies: 48
Views: 5609

Re: Books - Your 3 Best - (Nonfiction, Fiction, Financial/Investing)

Fiction: 1984 - Orwell 100 Years of Solitude - Garcia Marquez Lord of the Rings - Tolkien Poetry - Romancero Gitano - Gabriel Garcia Lorca Non Fiction: Learned Optimism - Martin Seligman Gifts Differing - Isabel Briggs Myers A Grammar of Contemporary English - Quinn Runner Up: The Presidents Club - ...
by Peter Foley
Tue Aug 14, 2018 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: 61 Year old in need of advice
Replies: 14
Views: 1603

Re: 61 Year old in need of advice

A SIMPLE IRA is another option for a self employed person. It works well if you have no employees. Deferral limits are not as high as a Solo 401k.
by Peter Foley
Tue Aug 14, 2018 2:29 pm
Forum: Investing - Theory, News & General
Topic: How can I use the Rising Equity Glide Path?
Replies: 61
Views: 4170

Re: How can I use the Rising Equity Glide Path?

If you want to take a look at increasing your withdrawal rate to 5% you should read the following: Note that the link on the Wiki no longer works: Jonathan Guyton, Withdrawal Rules: Squeezing More From Your Retirement Portfolio "...most [SWR] research has centered on withdrawal rules that are quite ...
by Peter Foley
Mon Aug 13, 2018 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Parents with Retirement
Replies: 34
Views: 4035

Re: Helping Parents with Retirement

You don't have to talk the out of tithing to their church. In fact, they may be able to increase the contributions. Meet with the pastor and talk to him/her about donating mutual fund shares directly if you do not want to go the donor advised fund route. Some of their holding have long term capital ...
by Peter Foley
Mon Aug 13, 2018 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Another Roth vs Traditional Debate
Replies: 21
Views: 1920

Re: Another Roth vs Traditional Debate

Can you clarify the qualified dividends income? As presented it seems like it is in addition to your $110 salary. If you went to Roth, would those qualified dividends be taxable? $110,000 - $24,000 (MFJ deduction) = $86,000 in taxable income. Dividends would be taxed above $77,300 in taxable income....
by Peter Foley
Mon Aug 13, 2018 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Implications for Beneficiaries
Replies: 3
Views: 345

Re: Tax Implications for Beneficiaries

With the situation you describe, many couples would consult an estate planning lawyer and set up a trust. If you were to research my postings you would find I am not a fan of trusts if many situations. However, it is likely the best way to go with a blended family and your stated intentions. A way a...
by Peter Foley
Mon Aug 13, 2018 4:14 pm
Forum: Investing - Theory, News & General
Topic: How can I use the Rising Equity Glide Path?
Replies: 61
Views: 4170

Re: How can I use the Rising Equity Glide Path?

I'm not sure a rising equity glide path requires annual rebalancing. I read the original paper and both Kitces' and Pfau's early commentaries. I think the basic premise is sound for many investors, especially those whose retirement savings allow for some but not a lot of discretionary spending. I to...
by Peter Foley
Mon Aug 13, 2018 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: 61 Year old in need of advice
Replies: 14
Views: 1603

Re: 61 Year old in need of advice

Is he married? What do you estimate his annual expenses are? He is likely to have a fairly low income and tax rate when he retires. At a minimum he should put some money in an IRA for the next couple of years. That will lower his taxes now and he will likely pay less in taxes when retired. I agree t...
by Peter Foley
Mon Aug 13, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Help evaluate our financial health
Replies: 13
Views: 1139

Re: Help evaluate our financial health

In terms of savings you are off to a really, really good start. Kudos for funding both a tax deferred and a Roth for each of you.

At your income level, if you want to back off on retirement savings a bit, I might forego Roth contributions for a couple of years.
by Peter Foley
Mon Aug 13, 2018 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to have “what if” discussion with retired parents?
Replies: 48
Views: 4710

Re: How to have “what if” discussion with retired parents?

It is widely known that "senior citizens" are a target group for fraudsters. Many seniors suffer some mental decline as they age. This can make them more susceptible to fraud.

That is a good reason for multiple individuals to have knowledge of family finances.
by Peter Foley
Sun Aug 12, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Parents with Retirement
Replies: 34
Views: 4035

Re: Helping Parents with Retirement

Good suggestion regarding the use of the donor advised fund by camillus. Just an FYI - Vanguard used to have much higher minimums to set up a donor advised fund than Schwab. I've been using the Schwab DAF for a few years and it was easy to set up and easy to make grants. It may be a reason to go wit...
by Peter Foley
Sun Aug 12, 2018 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: “Safe” investment approaching retirement
Replies: 17
Views: 1873

Re: “Safe” investment approaching retirement

RIMDBogle: I'm not sure there is a way to do this. Many stable value funds include insurance contracts and those would be hard to replicate. In addition, many have withdrawal limitations. While I was employed I could only move 20% of the stable value per year to something else with the exception of ...
by Peter Foley
Sat Aug 11, 2018 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: How to have “what if” discussion with retired parents?
Replies: 48
Views: 4710

Re: How to have “what if” discussion with retired parents?

Can this be put in "positive" terms. What would you like your legacy to be? In my wife's family there is/was a saying "If perchance the inevitable . . ." These were instructions/advice for what to do that each of her parents wrote up. I have written such a letter for my wife and children. One concre...
by Peter Foley
Sat Aug 11, 2018 6:44 pm
Forum: Investing - Theory, News & General
Topic: Average Investor Return Chart
Replies: 10
Views: 1357

Re: Average Investor Return Chart

We had an investment adviser speak to the local BH group. He basically walked the group through the Dalbar report. The numbers presented for investors' returns relative to the market were much lower than what I had been lead to believe. I did some follow up research and read a couple studies that de...
by Peter Foley
Sat Aug 11, 2018 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: “Safe” investment approaching retirement
Replies: 17
Views: 1873

Re: “Safe” investment approaching retirement

Vanguard's intermediate term bond fund is often recommended. I don't know anything more about the fund. A good higher interest paying stable value fund is my approach. Our stable value funds pay more than the rate of inflation. We have stable value, total bond, TIPS, and I-bonds for our non equity m...
by Peter Foley
Sat Aug 11, 2018 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: 10 year check up, look back and look forward to retirement
Replies: 13
Views: 1445

Re: 10 year check up, look back and look forward to retirement

Since the topic of when to take SS benefits came up, Mike Piper created a calculator that helps couples optimize their benefits. I ran the numbers for my wife and me and it had a better plan than the one I had in mind. Here is a link to the thread. https://www.bogleheads.org/forum/viewtopic.php?f=2&...
by Peter Foley
Sat Aug 11, 2018 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Comfortably Retired and charity giving?
Replies: 25
Views: 2174

Re: Comfortably Retired and charity giving?

indexonlyplease wrote: I started buying bicycles 5 years ago and donate them to a charity that houses children taken away from the families. At christmas time. I go to Walmart purchase 10 girl bikes and 10 boy bikes. Walmart builds them then delivers them. I like this better that cash donation becau...
by Peter Foley
Fri Aug 10, 2018 9:43 pm
Forum: Investing - Theory, News & General
Topic: Retiree Portfolio Model question
Replies: 2
Views: 549

Re: Retiree Portfolio Model question

I've run numerous scenarios using RPM and feel I have a basic understanding of it. If I remember correctly it tells you when you have a negative balance (red font on set up tab). At that point you would know that plan , aka model, is not going to work and you need to make adjustments. You have to wo...