Search found 4684 matches

by Peter Foley
Sun Nov 25, 2018 8:24 pm
Forum: Personal Consumer Issues
Topic: Aging Parent's deteriorating home
Replies: 30
Views: 3892

Re: Aging Parent's deteriorating home

I would be inclined to try to determine the cause of the mold in the basement. It might be something very easy to remedy like extending a downspout to that water drains away from the house. (In our case it was a neighbor's drain pointed at a basement window and adding an elbow fixed the problem.) Ba...
by Peter Foley
Sat Nov 24, 2018 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Top ten recommended books on personal investing
Replies: 26
Views: 3074

Re: Top ten recommended books on personal investing

Taylor wrote: In my opinion, you do not need to read another investing book. Jack Bogle's book is the best. Reading more books is likely to hurt your investing performance more than help. I'm going to quibble a bit here. If you take a very narrow view of "investing" I could agree with the comment. I...
by Peter Foley
Fri Nov 23, 2018 11:45 pm
Forum: Investing - Help with Personal Investments
Topic: What is a qualified dividend?
Replies: 2
Views: 781

Re: What is a qualified dividend?

A qualified dividend is a dividend that is treated like a long term capital gain for tax purposes. A non qualified dividend is treated like interest which is taxed at one's ordinary tax rate. This may be a bit oversimplified, but it is the distinction that interests most investors.
by Peter Foley
Fri Nov 23, 2018 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Helping elderly Mom with finances
Replies: 45
Views: 3554

Re: Helping elderly Mom with finances

Joint account for convenience: My wife was able to have her name added to her mother's existing account. At that time her mother was mentally fairly sharp and participated in the process at the bank. This was the experience we had in Minnesota. I'm not aware of how broadly used this type of arrangem...
by Peter Foley
Fri Nov 23, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Helping elderly Mom with finances
Replies: 45
Views: 3554

Re: Helping elderly Mom with finances

Just a couple things you should check out regarding you father's accounts. Are any of them joint with your mother or you? That would facilitate some consolidation. Also explore "joint account for convenience" as a possible option for both your father's and you mother's accounts. Ally bank is a good ...
by Peter Foley
Thu Nov 22, 2018 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: How do tax brackets work?
Replies: 37
Views: 5671

Re: How do tax brackets work?

AMT exemption amount in 2018 is 109,400 for MFJ.
by Peter Foley
Thu Nov 22, 2018 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: How do tax brackets work?
Replies: 37
Views: 5671

Re: How do tax brackets work?

Lady Geek wrote: The concept of paying tax on each additional dollar of income is explained in gory detail in the wiki: Marginal tax rate Ouch! It hurts to even think about it! The tax brackets listed are for "taxable income." The example given is very straightforward if one is talking about earned ...
by Peter Foley
Tue Nov 20, 2018 3:12 pm
Forum: Personal Consumer Issues
Topic: Recommendations for Home Printer
Replies: 41
Views: 1859

Re: Recommendations for Home Printer

Silk wrote: If you only need B&W printouts then don't buy a color printer. Even if you don't use color the cartridges will eventually get consumed over time and the printer won't print B&W when color is empty. If you buy a B&W there are inexpensive Laser B&W printers that will be more cost efficient...
by Peter Foley
Mon Nov 19, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for Recent Retiree
Replies: 20
Views: 1484

Re: Asset Allocation for Recent Retiree

Based on your assets and age at retirement you do not have a lot of need to take risk. That being said, with a 2% withdrawal rate your 50% bond allocation alone should carry you. So the question comes down to what do you want to do with half of your retirement savings (the equities half)? Use it for...
by Peter Foley
Sun Nov 18, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 45
Views: 3660

Re: Ed Slott & Roth Conversions

Backtracking a bit to the OP's concern . . . There are many variables to consider as well as life's unknowns which sometimes get in the way of "best laid plans." IMHO the "best" solution can only be seen in hindsight. It is likely that converting to the top of the 12% bracket - if delaying SS benefi...
by Peter Foley
Sat Nov 17, 2018 4:57 pm
Forum: Investing - Theory, News & General
Topic: Question about Roth conversion
Replies: 33
Views: 1971

Re: Question about Roth conversion

One point not often mentioned when it comes to Roth conversions. It may be best not to convert everything. Leaving a $200,000 balance in tax deferred won't require high tax RMD's. The average RMD would be about $8K/year over the first 5 years. Having a reserve in tax deferred may be to one's advanta...
by Peter Foley
Sat Nov 17, 2018 4:43 pm
Forum: Investing - Theory, News & General
Topic: Financial Engines recommends spending Roth money first
Replies: 25
Views: 2667

Re: Financial Engines recommends spending Roth money first

Not necessarily the OP's situation, but there could be a few situations where spending from a Roth first makes sense. 1. Retirement before age 59.5 and withdrawing contributions from a Roth to avoid withdrawal penalties from a tax deferred account. 2. It may be the right approach if one has low livi...
by Peter Foley
Sat Nov 17, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 45
Views: 3660

Re: Ed Slott & Roth Conversions

Lots of good answers and input here already. The OP's scenario is one that applies to many of us boomers. Agreed, current and future tax rates are important as are the details that Celia iterates nicely. Growthseeker pointed out another interesting fact regarding conversions and decreased portfolio ...
by Peter Foley
Fri Nov 16, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: 2 Questions
Replies: 8
Views: 778

Re: 2 Questions

Tal wrote: The alternative to applying your target asset allocation equally across all accounts is to instead focus on your total asset allocation. For example, if you wanted to be 60/40, and you had your money split even between a taxable an an IRA account, you may want to make your taxable account...
by Peter Foley
Tue Nov 13, 2018 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: 2 Questions
Replies: 8
Views: 778

Re: 2 Questions

Not a lot of details here but for question number 1, pulling from taxable would probably not be horrible. Your premise is that the market is down and so is your income because of loss of job. Probably/Likely pay no tax on long term capital gains. Second choice here for those under the age of 59.5 wo...
by Peter Foley
Mon Nov 12, 2018 11:46 pm
Forum: Investing - Help with Personal Investments
Topic: Managing RMDs
Replies: 10
Views: 1097

Re: Managing RMDs

While it may not apply to your situation because you are currently receiving SS benefits, many couples with substantial tax deferred savings and RMD's that would push them into the 22% tax bracket find Roth conversion to the top of the 12% bracket to be beneficial. You really need to run the numbers...
by Peter Foley
Mon Nov 12, 2018 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: 457 vs 403b
Replies: 120
Views: 7590

Re: 457 vs 403b

I would not be put off by a governmental 457b plan that offered annuities and mutual funds if some of the mutual funds offered low cost index funds. You really only need a couple good low cost options in a plan as you can fill out your desired asset allocation elsewhere (possibly Roth or taxable).
by Peter Foley
Mon Nov 12, 2018 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: [Financial] Habits of the Rich
Replies: 222
Views: 29662

Re: [Financial] Habits of the Rich

I'm not sure my wife and I are qualified by definition to answer, but we are comfortable in retirement and retired a little on the early side. 1. Live below your means (LBYM). 2. Avoid debt on depreciating assets. 3. Automate savings. Transferring periodic raises to 401ks for retirement contributes ...
by Peter Foley
Sat Nov 10, 2018 11:45 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion/Tax Withheld Then Deposited
Replies: 7
Views: 643

Re: Roth Conversion/Tax Withheld Then Deposited

It is hard for me to decipher exactly what you did to try to correct the tax withholding. It sounds like you contributed $200 in after tax money to an IRA with only pre-tax contributions. If this is true it will make future Roth conversions a little more complicated.
by Peter Foley
Fri Nov 09, 2018 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement and Asset Allocation
Replies: 20
Views: 2032

Re: Early Retirement and Asset Allocation

I would suggest you read about the concept of a rising equity glide path (Wade Pfau). It argues for being a little more conservative around the time you retire to protect against a bad sequence of returns. A little more conservative might be in the neighborhood of 40% to 50% equities, certainly not ...
by Peter Foley
Fri Nov 09, 2018 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Asset allocation
Replies: 3
Views: 619

Re: Vanguard Retirement Asset allocation

It goes without saying that you will only know if the Vanguard recommendation is good in hindsight. I offer this as an alternative to consider realizing that the opinion of one investor, no matter how well read, does not have the research behind it that Vanguard offers. Asset allocation - I like the...
by Peter Foley
Fri Nov 09, 2018 12:11 am
Forum: Investing - Help with Personal Investments
Topic: Retirement withdrawal plan Fall 2019, ACA vs Roth conversions
Replies: 10
Views: 962

Re: Retirement withdrawal plan Fall 2019, ACA vs Roth conversions

My advice would be along the lines of that of mhalley - you should be looking at Roth conversions based on the ratio of your assets in taxable, tax deferred and Roth. Because of the increase in Medicare B premiums based on income at at 63, I would look to do a couple substantial conversions before t...
by Peter Foley
Tue Nov 06, 2018 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Is this an OK asset re-allocation
Replies: 3
Views: 394

Re: Is this an OK asset re-allocation

The effect of your proposal would be to put assets with a better opportunity for return in your Roth. All the funds you own are low cost so I wouldn't worry about any minor changes in fees. As to timing, they are all tax deferred so it would not matter too much. I would be tempted to note when divid...
by Peter Foley
Tue Nov 06, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 15215

Re: How much money are you leaving your kids after you die?

Most of our accounts are set up with beneficiaries and contingent beneficiaries (we have two children, each with two children). Everyone is well versed on "disclaiming." We are really more interested in sharing while we are alive. Funding grandchildren's education is very important to us. Money can ...
by Peter Foley
Mon Nov 05, 2018 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA as tax bracket buffer
Replies: 12
Views: 1331

Re: Roth IRA as tax bracket buffer

I use it more as an emergency fund. I have a multi-year plan to pay relatively level taxes now (retired, pre SS benefits) through the early years of RMDs. If I need additional funds for something I can tap a Roth rather than a tax deferred account. One goal is to stay below the Medicare B premium th...
by Peter Foley
Mon Nov 05, 2018 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Documents
Replies: 32
Views: 2716

Re: estate Documents

In addition to the books recommended by gretah, you may want to take a look at a few of the checklists provided by Ed Slott in his book Your Complete Retirement Planning Road Map . The checklists are good starting points for a number of aspects of retirement planning. It starts with an inventory of ...
by Peter Foley
Mon Nov 05, 2018 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Income in retirement?
Replies: 14
Views: 2000

Re: Income in retirement?

For many retirees turning off dividend reinvestment and capital gains reinvestment in taxable accounts are ways to provide some income in retirement. One's approach depends greatly on how much one holds in taxable accounts relative to tax deferred accounts. It takes a substantial taxable account to ...
by Peter Foley
Sun Nov 04, 2018 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Attorney vs Willmaker for simple estate planning
Replies: 6
Views: 739

Re: Attorney vs Willmaker for simple estate planning

After we had children we went to an attorney to have a will drawn up. I think having something in place to provide for offspring who are young is worth the expense. We wanted someone who had experience with the issues of guardianships and managing money for minors to advise us.
by Peter Foley
Sun Nov 04, 2018 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: RMDs and taxes
Replies: 28
Views: 2803

Re: RMDs and taxes

Offhand I cannot think of any books I would recommend that are dedicated to this topic. It is a topic covered in chapters of some books on retirement saving and spending including the Bogleheads' Guide to Retirement Planning. I would recommend researching the writings of the following authors/blogge...
by Peter Foley
Sun Nov 04, 2018 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need more than Original Medicare?
Replies: 110
Views: 6385

Re: Do I need more than Original Medicare?

Yes. There are Medicare advantage plans that are very low cost with relatively high deductibles. Why would you take a chance? While your health may be fine you cannot predict when an accident might happen. As pointed out, Medicare D is a must because of the penalty provisions. Personal note - I use ...
by Peter Foley
Sat Nov 03, 2018 10:55 pm
Forum: Investing - Help with Personal Investments
Topic: Recalibrating retirement portfolio for 2019
Replies: 11
Views: 2066

Re: Recalibrating retirement portfolio for 2019

I think dwickenh is on target. The only thing I would add would be to hold your bond allocation in your SEP. With your desired AA your Roth should be all equities.
by Peter Foley
Sat Nov 03, 2018 10:32 pm
Forum: Local Chapters and Bogleheads Community
Topic: Sacramento, CA Area Chapter - Master Thread
Replies: 121
Views: 32284

Re: Sacramento, CA Area Chapter - Master Thread

Hi Greg. I'm on the steering committee of the MN Bogleheads group. I have communicated with someone from your group in the past. We would be happy to share information with you if you are interested. A few things we are curious about: You meet monthly. About how many people attend? Do you have set t...
by Peter Foley
Fri Nov 02, 2018 3:21 pm
Forum: Investing - Theory, News & General
Topic: Roth conversion strategy
Replies: 19
Views: 2148

Re: Roth conversion strategy

2cents2 You mentioned that you use Turbo tax. There is a form you can print out (or view) called the 2 year comparison. It is very helpful for future tax planning including Roth conversions. In your case, if your income fluctuates I would be tempted to do at least a couple conversions during the yea...
by Peter Foley
Fri Nov 02, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: What is an "advanced" investor?
Replies: 34
Views: 2612

Re: What is an "advanced" investor?

While there are a number of good solid answers here, I would add a +1 to Taylor's post. I would add, however, that an advanced investor understands why these principles are important.
by Peter Foley
Fri Nov 02, 2018 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: estimating Roth conversion amount
Replies: 5
Views: 583

Re: estimating Roth conversion amount

If you use Turbo tax there is a form you can print out called 2 year comparison. I used the output of that form to create an excel spreadsheet which I use to project future year adjusted gross income, taxable income, and estimated tax liability. That spreadsheet had been useful in planning Roth conv...
by Peter Foley
Wed Oct 31, 2018 8:02 pm
Forum: Investing - Theory, News & General
Topic: Large cap value, small cap, mid cap, etc. index funds
Replies: 15
Views: 1068

Re: Large cap value, small cap, mid cap, etc. index funds

There are a variety of opinions to say the least. Check out the Lazy Portfolios on the BH Wiki. https://www.bogleheads.org/wiki/Lazy_portfolios
by Peter Foley
Wed Oct 31, 2018 7:58 pm
Forum: Investing - Theory, News & General
Topic: How faithful must index funds be?
Replies: 9
Views: 814

Re: How faithful must index funds be?

There are some index funds that do not hold all the stocks in their index. They hold a subset of the stocks which will very closely correlate to the performance of the index. This type of fund may have more flexibility. Some index funds are managed to be tax efficient. They too might have more flexi...
by Peter Foley
Tue Oct 30, 2018 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: inherited IRA
Replies: 14
Views: 1363

Re: inherited IRA

Gatamelata wrote: Peter, out of curiosity, why would you accelerate the transfer? I think the conventional wisdom is to leave funds in tax deferred accounts as long as possible, especially since the OP appears from the Vanguard asset allocation to be quite young. Is it to avoid the impact of RMDs on...
by Peter Foley
Tue Oct 30, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: inherited IRA
Replies: 14
Views: 1363

Re: inherited IRA

Grabiner wrote: Welcome to the forum! n00bieecho wrote: ↑Mon Oct 29, 2018 2:58 pm Friendly neighborhood Bogleheads, I inherited my aunts IRA to the tune of $112k, which I am very grateful to have. I enrolled in Vanguard Personal Advisor, which they put me in 84.9% in stocks and 6.3 % in bonds. VTSAX...
by Peter Foley
Tue Oct 30, 2018 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Moving to Minnesota
Replies: 28
Views: 2969

Re: Moving to Minnesota

Another welcome. I've lived in the Twin cities area for close to 45 years, the last 40 in St. Paul within easy running distance to the Mississippi. I have friends in Vadnais Heights, Shoreview, Forest Lake, and Stillwater. I have biked in all these areas as well. I think the NE suburbs of St. Paul a...
by Peter Foley
Tue Oct 30, 2018 2:22 pm
Forum: Investing - Theory, News & General
Topic: madsinger monthly report (September 2018)
Replies: 5
Views: 833

Re: madsinger monthly report (September 2018)

Thanks for producing this regularly. I'm planning on doing a BH presentation on a number of commonly recommended portfolios. Having a place to go to see the return of many of them at once is great.
by Peter Foley
Sun Oct 28, 2018 10:38 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Fall Main Meeting 10/27/18
Replies: 20
Views: 2287

Re: Minnesota BH Fall Main Meeting 10/27/18

A brief update for those who are following this thread and attended the meeting. The headcount of attendees was 110, the largest meeting ever and the first one to break the century mark. If you are on the MN Bogleheads e-mail list you should be receiving copies of handouts/moderator notes from the b...
by Peter Foley
Sun Oct 28, 2018 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Roth IRA and Rollover IRA
Replies: 7
Views: 681

Re: Asset Allocation - Roth IRA and Rollover IRA

I agree - no problem holding a mix of target date funds. How much to save . . . the opinion varies but here are a few examples I saved from past articles: Age based savings goals* Age 30: Savings = 0.6 x Income Age 40: Savings = 2.4 x Income Age 50: Savings = 5.2 x Income Age 60: Savings = 9.4 x Inc...
by Peter Foley
Sun Oct 28, 2018 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Beginner Tax-Loss Harvesting Situation
Replies: 8
Views: 748

Re: Beginner Tax-Loss Harvesting Situation

Just sell, then buy something that is similar but not the exact equivalent.

For example, selling total stock market and replacing it immediately with an S&P 500 index is easy. The two are highly correlated so just reverse course after a month or two.
by Peter Foley
Sun Oct 28, 2018 11:23 am
Forum: Investing - Theory, News & General
Topic: Roth 401/403/457 withdrawals pre 59.5. Tax/penalty? What if rolled over to Roth IRA?
Replies: 25
Views: 1413

Re: Roth 401/403/457 withdrawals pre 59.5. Tax/penalty? What if rolled over to Roth IRA?

jeffyscott provided a link to a thread that has a table that I have found most helpful. Here is the table: 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 Contribut...
by Peter Foley
Fri Oct 26, 2018 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation (457) Portfolio
Replies: 11
Views: 1289

Re: Deferred Compensation (457) Portfolio

krow36 I assumed an 80/20 stock/bond asset allocation, and 20% of stocks in international. That works out to about: 64% Vanguard Institutional Index Fund (0.12 ER) Covers about 80% of the US stock market covering large and mid caps (S&P 500 Index). 16% Dodge & Cox International Stock Fund (0.63 ER)...
by Peter Foley
Fri Oct 26, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion math - taxes paid from IRA
Replies: 7
Views: 749

Re: Roth Conversion math - taxes paid from IRA

Sorry to add more variables to your calculation. Have you considered the fact that you can pay part of your 2018 tax bill next year? For example, you could have half of the conversion tax withheld when you convert this year and then do a withdrawal from your IRA early in 2019 when you know exactly w...
by Peter Foley
Thu Oct 25, 2018 8:02 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH Fall Main Meeting 10/27/18
Replies: 20
Views: 2287

Re: Minnesota BH Fall Main Meeting 10/27/18

Breakout update: Tax Reform preparing your 2018 tax return. Patrick,a tax preparer and volunteer with Prepare and Propser, will be doing the breakout instead of Chip. Roth IRA breakout: With the hope that the discussion will get beyond the basics of a Roth and center more on Roth conversions issues,...
by Peter Foley
Tue Oct 23, 2018 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1061

Re: Tax planning- Pensions, delaying SS, converting?

If I understand the numbers you presented correctly, this is their situation relative to Roth conversions. 2018 Adjusted gross income is 45K + 50K + dividends. (This may not be true if they worked this year. The 24% tax rate implied they did.) If they did not and if both are age 65, standard deducti...
by Peter Foley
Tue Oct 23, 2018 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing the right index fund mix
Replies: 9
Views: 1102

Re: Choosing the right index fund mix

Again welcome.

I too would be inclined to only hold two funds in taxable. If you are holding one of your current funds at a loss (International?), I would be inclined to sell that fund and aim toward the recommendation made by ExitStageLeft.