Search found 4486 matches

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: 4014

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: 3953

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: 1887

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: 332

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: 4014

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: 1583

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: 1115

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: 4634

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: 3953

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: 1834

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: 4634

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: 1330

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: 1834

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: 1424

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: 2113

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: 533

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...
by Peter Foley
Fri Aug 10, 2018 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning-Advice
Replies: 5
Views: 765

Re: Estate Planning-Advice

afan provided a good starting point: To prepare for your meeting you should think about who you want to get your assets when you die and who would take over and manage your assets while you are alive but incapacitated. The complexity will depend on how many heirs you have and how complicated you wan...
by Peter Foley
Fri Aug 10, 2018 3:41 pm
Forum: Investing - Theory, News & General
Topic: What's a good way to calculate when I have won the game??
Replies: 23
Views: 4548

Re: What's a good way to calculate when I have won the game??

There are a couple ways to do this that are often mentioned. For both methods one starts by determining their shortfall. Here is one method. Discounting SS, you roughly project your shortfall to be $35K. How much would one need in investments to be able to withdraw $35k/year at a 4% rate. $35k/.04 =...
by Peter Foley
Fri Aug 10, 2018 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: 10 year check up, look back and look forward to retirement
Replies: 13
Views: 1424

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

I would echo Exitstateleft's comment about being careful not to have too much of your retirement savings in tax deferred accounts. It was good to see you had started a Roth. While it will raise the ire of many, I will go on record as saying I think trusts are oversold. There are some very good reaso...
by Peter Foley
Fri Aug 10, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: Help with rollover into IRA and future retirement plans
Replies: 49
Views: 3025

Re: Asset Allocation for Newbie

There was a recent long thread about age in bonds not being suitable for many investors. You might want to read though the first page of posts, after which it gets a bit contentious. See: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=255850 My personal opinion is that when you are first star...
by Peter Foley
Thu Aug 09, 2018 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: 403b Roth or Pre-tax Decision and Marginal Rate
Replies: 17
Views: 702

Re: 403b Roth or Pre-tax Decision and Marginal Rate

Maybe it is just the way your are wording all of this when you use the combined federal and state tax rates. I find it confusing. For 2018 MFJ 2018 Federal Tax Brackets and Rates Rate For Unmarried Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable Income Over 10%...
by Peter Foley
Thu Aug 09, 2018 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax 2018 - Who must file
Replies: 15
Views: 1399

Re: Kiddie Tax 2018 - Who must file

Thanks HueyLD. It was a clear explanation and worth reading. I imagine that there will be a number of people who will have to file an additional return just to report relatively small amounts of a child's unearned income. We had horrible filing complexity when the law was changed in the mid 1980's. ...
by Peter Foley
Wed Aug 08, 2018 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax 2018 - Who must file
Replies: 15
Views: 1399

Re: Kiddie Tax 2018 - Who must file

Thanks DIFAR31 - that is the law as I understand it and as I have been applying it for the past few years.

However, the Pub. 17 referenced is 2017. Has this provision changed for 2018?
by Peter Foley
Wed Aug 08, 2018 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Roll a govt 457b into 403b or not?
Replies: 7
Views: 424

Re: Roll a govt 457b into 403b or not?

Ron wrote: Assuming low cost funds are available to you in both the 457b and the 403b, I would not roll it over. With a 457b, you can access the funds without penalty if you separate from the employer regardless of your age. That's a great feature. $35/year isn't so terrible when you're talking abou...
by Peter Foley
Wed Aug 08, 2018 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Time for my annual sanity check
Replies: 8
Views: 1122

Re: Time for my annual sanity check

I think you are in good shape. Here are a couple relatively minor things you could do: 1. Since so much of your savings is in tax deferred, I would be inclined to forego some current tax savings and fund a Roth 401k for a few years. This is just a precautionary move so that if you were to need extra...
by Peter Foley
Wed Aug 08, 2018 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax 2018 - Who must file
Replies: 15
Views: 1399

Re: Kiddie Tax 2018 - Who must file

Unless the law has changed, sometimes one does not have to "file" a child's tax return. Their income can be reported on their parent's return.

If this has changed I would like to know as I do tax returns for my children and their children (my grandchildren) have small UTMA accounts.
by Peter Foley
Wed Aug 08, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: Bond Holding
Replies: 11
Views: 1191

Re: Bond Holding

If your primary non equity holding is in an employer sponsored plan there may, or may not, be better options. We use a combination of total bond fund, TIPS, and stable value funds. A stable value fund paying more than the rate of inflation is a good option for at least part of one's non equities.
by Peter Foley
Wed Aug 08, 2018 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Suggestions
Replies: 11
Views: 545

Re: 401k Suggestions

My opinion is that until you have multiple years worth of contributions in a retirement account there is not much reason to diversify. The reason to diversify is to protect somewhat against loss. When that loss can be made up by buying additional shares over a couple years time, I see no reason to d...
by Peter Foley
Wed Aug 08, 2018 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Help with simplifying my portfolio
Replies: 6
Views: 809

Re: Help with simplifying my portfolio

I think the recommendations are overly complicating your portfolio. I admit that I am saying this without researching the holdings of each of the mutual funds so you may want to double check this. Specifically: Do the Global All Cap and Intl All Cap overlap? What are the top 10 holding of each? Mayb...
by Peter Foley
Tue Aug 07, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Evaluate my mother's portfolio
Replies: 17
Views: 1760

Re: Evaluate my mother's portfolio

I don't understand the reasoning behind the estate planning steps you are considering so I won't go there. Cash in taxable. Your mother can get better yields by using a combination of on line savings and short term CDs. It is worth making the changes if you intend to hold this much cash. I would als...
by Peter Foley
Tue Aug 07, 2018 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Help with retirement portfolio
Replies: 3
Views: 540

Re: Help with retirement portfolio

bloom provided a very complete answer, much along the lines of my humble opinion. A couple additional thoughts: Will Roth conversions cause more of your father's SS benefits to be taxed? It could be that with the right mix of income that some small conversions would not cause taxation at a higher ma...
by Peter Foley
Tue Aug 07, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion and Social Security Taxation
Replies: 6
Views: 714

Re: Roth Conversion and Social Security Taxation

SS Benefits are taxed based on ones Modified Adjusted Gross Income, not one's taxable income. If you do a substantial Roth conversion it is likely that 85% of your SS Benefits would be taxable. The taxation of SS Benefits creates marginal tax rates different from the standard 10%, 12%, 22%, etc. The...
by Peter Foley
Mon Aug 06, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 13718

Re: "Age in Bonds" fails almost everyone

Thank you for posting this. I have never been a fan of age in bonds. I think that it is much too conservative for most retirees. For those retirees of more limited means a single premium fixed annuity is a better approach. I would not have used the word "fails" however. Is not the "best approach/opt...
by Peter Foley
Mon Aug 06, 2018 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Income Allocation Portfolio Recommendations
Replies: 11
Views: 1494

Re: Early Retirement Income Allocation Portfolio Recommendations

ExitStageLeft wrote: The standard deduction is the reason to have part of your retirement savings in a tax-deferred account. That is $12,000 that has a zero tax rate. If you could subsist on an income of $12k per year from your traditional IRA, your AGI would be $12k and after your standard deductio...
by Peter Foley
Sun Aug 05, 2018 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Death of Grandfather - creating to do list for Grandmther
Replies: 23
Views: 1793

Re: Help! Death of Grandfather - creating to do list for Grandmther

A couple posters have advised to get extra death certificates. I will just throw out a number. We requested 15 when my mother died in 2009. I have 4 originals left. I think we only had one or two originals returned to us.
by Peter Foley
Sun Aug 05, 2018 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: Will you pay for your kids' college/graduate education?
Replies: 366
Views: 15457

Re: Will you pay for your kids' college/graduate education?

There is a "tradition" in our family going back a couple generations. One of my mother's uncles set up a trust fund to pay for college education for all 13 of his great nieces and nephews. That covered about 75% of my private college undergraduate studies. Graduate studies were on my own. My mother ...
by Peter Foley
Sun Aug 05, 2018 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Financial planning questions
Replies: 5
Views: 884

Re: Financial planning questions

I don't really understand the NQDC. It is just not something I have ever read up on, so I hesitate to comment. If your wife is doing contract work she should be able to set up a SIMPLE or perhaps a Solo 401k. In either case she would have a tax deferred account where you could hold some of your bond...
by Peter Foley
Sun Aug 05, 2018 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Close to retirement - please review
Replies: 23
Views: 3994

Re: Close to retirement - please review

IMHO you have made a lot of good moves over the past two years and your plan seems sound. You wrote: Any ideas, suggestions on how to handle Roth Conversions and TGH? Do them in alternate years? Do Roth conversion when Market is down (less gains to be taxed as ordinary income) and do TGH in the year...
by Peter Foley
Sun Aug 05, 2018 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Help with simplifying my portfolio
Replies: 6
Views: 809

Re: Help with simplifying my portfolio

Your stable value fund is okay but not great - it is along the same line as mine and is not, in and of itself, a reason for keeping that 401k. I would start by doing some research and deciding what you want your asset allocation to be moving forward. For your ages and assets, 50/50 would not be a ba...
by Peter Foley
Sat Aug 04, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Good 529 plan or other alternatives
Replies: 8
Views: 602

Re: Good 529 plan or other alternatives

Nevada, Utah and New York all have had highly rated plans in the past.

Note that some state's offer a deduction for a contribution to their plan while other states (Minnesota, et. al.?) offer a deduction to any plan.
by Peter Foley
Sat Aug 04, 2018 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement withdrawal strategy
Replies: 17
Views: 2744

Re: Early retirement withdrawal strategy

I have found the concept of a "rising equity glide path" to be compelling if one is concerned their retirement portfolio might not last. Wade Pfau is one of the authors of the article which outlined this concept. In the OP's case it might argue for a 50/50 AA going into retirement and letting the eq...
by Peter Foley
Sat Aug 04, 2018 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring UTMA Account to Beneficiary
Replies: 7
Views: 594

Re: Transferring UTMA Account to Beneficiary

I don't know the answer but am interested in the reply.

Are the circumstances different if the custodian lives in a state where the age is 21? (My circumstance for one grandchild.)
by Peter Foley
Sat Aug 04, 2018 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Help with simplifying my portfolio
Replies: 6
Views: 809

Re: Help with simplifying my portfolio

If you could add a couple edits it would be helpful. Are you retired. Is your spouse retired? What are your current plans for taking SS Benefits? (I'm thinking out loud about Roth conversions during low income years.) What is the interest rate paid on the Interest Income Fund? (Sometimes the rates p...
by Peter Foley
Sat Aug 04, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: 4% rule .. but when?
Replies: 35
Views: 4253

Re: 4% rule .. but when?

I look at the 4% rule as a savings/planning rule, not really a spending rule. In other words, my goal for savings might be when I have saved enough to support a 4% withdrawal rate (or 3% if I were retiring young) I could consider retiring.
by Peter Foley
Sat Aug 04, 2018 9:35 am
Forum: Personal Consumer Issues
Topic: AAA & AARP = Travel Benefits?
Replies: 27
Views: 2566

Re: AAA & AARP = Travel Benefits?

While it has been a few years since our last car rental, AARP was better than AAA. Better than both if you are flying to the location is to tie the car rental to the airline. When I followed the airline's link to the car rental the rate was much lower than either of the above.
by Peter Foley
Fri Aug 03, 2018 10:51 pm
Forum: Investing - Theory, News & General
Topic: 3 Levels of Wealth
Replies: 125
Views: 11927

Re: 3 Levels of Wealth

bubbadog wrote: Earl Lemongrab wrote: ↑Fri Aug 03, 2018 3:18 pm It doesn't matter how much money I have. I ALWAYS care what things cost. The difference might be that I decide that more expensive things are acceptable to buy, I but I sure pay attention to costs. I agree. I always try to get a good va...
by Peter Foley
Fri Aug 03, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Income Allocation Portfolio Recommendations
Replies: 11
Views: 1494

Re: Early Retirement Income Allocation Portfolio Recommendations

bluewatervoyage wrote: The cost basis is pretty low on it so if I have no earned income for 2018 then I'm thinking I can cash it out and as long as I'm in the 15% or below tax bracket I shouldn't have to pay capital gains on it. Is that an accurate assumption? Yes. Although as noted REITs are consid...
by Peter Foley
Fri Aug 03, 2018 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Charitable giving strategy
Replies: 43
Views: 2379

Re: Charitable giving strategy

Most of what we do is local. A primary consideration is support of the needy (food, housing, education) and low overhead.

We also give to a couple well known worldwide organizations who are involved in support of medical research and medical care.
by Peter Foley
Fri Aug 03, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: 3 Levels of Wealth
Replies: 125
Views: 11927

Re: 3 Levels of Wealth

I like Maslow's because it can tie economics to engagement in activities, positive feedback regarding those activities, and happiness - something we should keep in mind when we plan for how we want to spend our retirement years. I find the investmentmoats list interesting from a different perspectiv...
by Peter Foley
Thu Aug 02, 2018 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Income Allocation Portfolio Recommendations
Replies: 11
Views: 1494

Re: Early Retirement Income Allocation Portfolio Recommendations

Just a couple comments. Your stock allocation is way too low for your age and potential length of retirement. That should be your starting point for decision making. While some might recommend a minimum of 25% in stocks, my low end is 40%. I too think the market is high. I would suggest dollar cost ...