Search found 393 matches

by Hub
Fri Mar 07, 2014 9:33 am
Forum: Investing - Help with Personal Investments
Topic: ESA/529 vs Taxable in income tax free state
Replies: 1
Views: 249

Re: ESA/529 vs Taxable in income tax free state

I am bumping this in case anybody on the morning shift has any thoughts on the matter. Thanks.
by Hub
Thu Mar 06, 2014 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: ESA/529 vs Taxable in income tax free state
Replies: 1
Views: 249

ESA/529 vs Taxable in income tax free state

I'm trying to decide whether to save for my kids' college in an Education Savings Account or just in taxable investments. I live in a no income tax state, and I currently max all tax advantaged space. We're in the 15% federal bracket for 2014 and probably 2015. I intend to quit our jobs and semi-ret...
by Hub
Mon Mar 03, 2014 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: What to say to Non-Savers
Replies: 71
Views: 7525

Re: What to say to Non-Savers

The only way you'll "need" $3-4 million in retirement is if you intend to have a very high level of spending in retirement ($120,000 per year). I would rather work less than spend more, but we all have choices to make. OP is 33. Lets assume he wants to retire at 65. If you believe the gov't statist...
by Hub
Mon Mar 03, 2014 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: What to say to Non-Savers
Replies: 71
Views: 7525

Re: What to say to Non-Savers

Do you plan to work forever goodoboy? A primary motivator for me in delaying gratification now is so that I can be free and financially independent as soon as possible. A savings rate of 23% is nice, but 50% would be a lot better. I think you may feel like you're over-saving just in comparison to yo...
by Hub
Thu Feb 20, 2014 10:25 am
Forum: Investing - Help with Personal Investments
Topic: is Roth and 401k enough to retire on?
Replies: 11
Views: 2059

Re: is Roth and 401k enough to retire on?

I intend for Roth + 401k to be enough to retire early on, though obviously I aspire to build taxable too. Keep in mind that if you retire at 50 and your income goes to zero, then doing conversions from an IRA to a Roth IRA are taxed at that new lower income level with no penalty. You have to wait 5 ...
by Hub
Tue Feb 04, 2014 3:40 am
Forum: Personal Finance (Not Investing)
Topic: Disability insurance. Play devil's advocate for me
Replies: 15
Views: 1742

Re: Disability insurance. Play devil's advocate for me

Just wanted to chime in and agree with the mind bending difficulty of imagining scenarios where you get screwed by the phrasing of those words. I had a policy on my wife, a lawyer, and it said own occ, but after a few years of benefits it switched to any occ or something. NorthWestern Mutual. Ultima...
by Hub
Tue Feb 04, 2014 2:10 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 1285

Re: Maxing 401k into the 15% bracket vs taxable

Welp, I came here hoping you guys would let me invest in taxable, left having found an additional $2,025 of tax advantaged. Honestly I feel good about prepaying 15% marginal into a Roth any day of the week. Thanks so much for the help. EDIT: I see what you're saying about the 25%. I'll need to know ...
by Hub
Tue Feb 04, 2014 1:51 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 1285

Re: Maxing 401k into the 15% bracket vs taxable

Interesting. I'll have to read up on that, but I'm assuming I could contribute the whole $13,500 to the Roth 401k (understanding that this lowers my take-home). I'm also assuming that this doesn't affect her ability to contribute to a Roth IRA? Then when she quits this job I'm further assuming that ...
by Hub
Tue Feb 04, 2014 1:16 am
Forum: Investing - Theory, News & General
Topic: Do Bogleheads see this market dip as a buying point?
Replies: 127
Views: 16798

Re: Do Bogleheads see this market dip as a buying point?

I just think it's nice for the market to have been so cooperative to have this mini-correction at the end of the month when our automatic payroll investments are hitting.

I intend to push some more 2013 Roth onto the table tomorrow.
by Hub
Tue Feb 04, 2014 1:03 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 1285

Re: Maxing 401k into the 15% bracket vs taxable

Yes. My wife's does. Something I haven't considered, and I don't even know how a Roth 401k works exactly. Your thoughts?
by Hub
Tue Feb 04, 2014 12:43 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 1285

Re: Maxing 401k into the 15% bracket vs taxable

Wouldn't it make more sense to fill up the 15% bracket by converting some tax-advantaged to a Roth rather than backing off and investing an equivalent amount in taxable? My sense is that Roth gives you even more flexibility as you move forward, because it's not too difficult to pull the contributio...
by Hub
Tue Feb 04, 2014 12:40 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 1285

Re: Maxing 401k into the 15% bracket vs taxable

However, on the flip side, investing in taxable will not only cost you tax $ this year, it will every year moving forward once you start earning dividends and such. I really don't have a good handle on what this ends up looking like. Say I scrape together $40k in taxable investments over the next 3...
by Hub
Tue Feb 04, 2014 12:29 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 1285

Re: Maxing 401k into the 15% bracket vs taxable

Congrats on the boy! My first thought is that you're investing with a long-term horizon but only envision being in the 15% bracket for 2.5-3 years. It doesn't seem to me that you're going to be able to take advantage for very long, at least from a tax rate perspective. As for the other reasons you ...
by Hub
Tue Feb 04, 2014 12:23 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 1285

Re: Maxing 401k into the 15% bracket vs taxable

Sounds good. What do you predict your maximum marginal rate to be in retirement? The current plan is to semi-retire as young as possible and fill up the 15% bracket every year with some combination of wages and annual IRA to Roth IRA conversions. The risk there is that my new semi-retirement career...
by Hub
Tue Feb 04, 2014 12:12 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 1285

Maxing 401k into the 15% bracket vs taxable

For 2014 with another exemption due this summer (it's a boy) on top of this being a bunched deductions year, we're maxing 2 401ks, an HSA, a dependent care FSA, and have one defined contribution plan. This all has us down to $59k in taxable income, $13,500 worth down into the 15% bracket. I'm kickin...
by Hub
Mon Feb 03, 2014 11:54 pm
Forum: Investing - Help with Personal Investments
Topic: Max out my Roth 401(k) or open taxable investment?
Replies: 34
Views: 6347

Re: Max out my Roth 401(k) or open taxable investment?

Perhaps I am missing something but every time I read a post about investing in a Traditional 401(k) as opposed to a Roth 401(k) - or Traditional IRA as opposed to a Roth IRA - everyone seems to dismiss the huge advantage of tax-free compounding growth offered within the Roth accounts. Even if you a...
by Hub
Mon Feb 03, 2014 11:23 pm
Forum: Investing - Theory, News & General
Topic: What is your targeted annual retirement income in today's $
Replies: 50
Views: 7631

Re: What is your targeted annual retirement income in today'

We spend about $60k annual now. In retirement that same spend would be quite luxurious once many of my current expenses go away. So I run my numbers planning on $60k annual spend in retirement knowing there's room to spend much less, but also that it's likely I'll end up with the ability to safely s...
by Hub
Mon Feb 03, 2014 11:18 pm
Forum: Investing - Theory, News & General
Topic: What is your targeted annual retirement income in today's $
Replies: 50
Views: 7631

Re: What is your targeted annual retirement income in today'

We’re shooting for $60k after tax as a couple. We spend about $48k now. SS should cover about $45k, if the projections hold, but we’re shooting for $60k assuming no SS. We’re actually close now (about $2 million) at age 48 and 46, so now the question is do we ratchet the income number up, or retire...
by Hub
Wed Jan 29, 2014 3:49 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion "Horse Race"
Replies: 41
Views: 7660

Re: Roth Conversion "Horse Race"

Interesting strategy. I intend to be a future semi-retiree doing conversions to fill the 15% bracket just like Rusty so this is hopefully a trick still on the table at that time. One thing I'm not understanding just from reading this thread is what happens to the poor performing one that you pull ba...
by Hub
Mon Jan 27, 2014 1:55 pm
Forum: Investing - Theory, News & General
Topic: Do Bogleheads see this market dip as a buying point?
Replies: 127
Views: 16798

Re: Do Bogleheads see this market dip as a buying point?

I bought some on Friday with some 2013 roth money that was still in cash. Am under no delusions that it matters a bit, but I was just happy to see it come down for a few days. I still have a rather annoying amount of cash that I want invested but the constant run up has left me sitting on my hands o...
by Hub
Sun Jan 26, 2014 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Early "retirement" considerations
Replies: 25
Views: 2934

Re: Early "retirement" considerations

I like your plan and in some ways share it. If you guys keep living off of less than $30k then you can go ahead and quit now if you really want. If you want to wait 5 years that would be even safer. If you want to make a drop dead I quit when I'm 40 yrs old pact you'll have saved so much you could p...
by Hub
Mon Jan 13, 2014 1:42 pm
Forum: Investing - Theory, News & General
Topic: Net Worth Survey, 2014 Edition
Replies: 149
Views: 35713

Re: Net Worth Survey, 2014 Edition

Interesting data and commentary from the statisticians so far. Thanks to all for the input.
by Hub
Fri Jan 03, 2014 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: "semi retirement" careers
Replies: 17
Views: 3647

Re: "semi retirement" careers

Oddly enough, Enrolled Agent + CFP is my exact early retirement plan. The tax prep services should provide enough income to "keep the doors open" while the client base builds. I have about 6 years before I quit my job and go this route. At that time I'll be able to go a few years without needing any...
by Hub
Fri Jan 03, 2014 11:59 am
Forum: Investing - Theory, News & General
Topic: Invest all at once or DCA-one of most asked questions I get
Replies: 125
Views: 7333

Re: Invest all at once or DCA-one of most asked questions I

This remains one of my weaknesses. Cash accumulates in my account for Roth contributions to be made and also in my HSA account and a bit in my 401k. So currently I'm sitting on over $15k that works within my bond allocation sorta, but I want it invested in equities. It's just been tough to do it in ...
by Hub
Tue Dec 03, 2013 4:40 pm
Forum: Investing - Theory, News & General
Topic: Foreign Stocks For The Long Run
Replies: 63
Views: 6546

Re: Foreign Stocks For The Long Run

Thanks Rick. I worry about being right or wrong about this. I decided back when I set my allocations up proper to go 50/50 on US/International equities, but my REITs are all US which gets things closer to 55/45 total US. I think deep down I would prefer 60/40, but I'm certainly not going to head tha...
by Hub
Tue Dec 03, 2013 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: New to HSA, is it a good fit?
Replies: 24
Views: 2757

Re: New to HSA, is it a good fit?

Rough selection of expensive funds.

BALFX at 0.64% was the lowest expense ratio I saw at quick glance. I guess this is acceptable so long as you don't have other account fees associated.
by Hub
Tue Nov 26, 2013 1:01 pm
Forum: Investing - Theory, News & General
Topic: This Article Made Me Laugh, Re: Rollovers
Replies: 18
Views: 2461

Re: This Article Made Me Laugh, Re: Rollovers

Well early this year I left that employer for a better job (one of the big reasons I left was the employer turned his nose up at a Vanguard proposal for a small company 401k plan I gave him) and within a week had my sizable 401k in a Vanguard Rollover IRA in the same 2030 Target Date fund, but at 0...
by Hub
Tue Nov 26, 2013 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: MIL in financial trouble
Replies: 21
Views: 3390

Re: MIL in financial trouble

Thanks for sharing OP. Makes me very thankful for my in-laws, in spite of their quirks.
by Hub
Tue Nov 26, 2013 12:12 pm
Forum: Investing - Theory, News & General
Topic: This Article Made Me Laugh, Re: Rollovers
Replies: 18
Views: 2461

Re: This Article Made Me Laugh, Re: Rollovers

I was thinking that the main reason not roll over into an IRA is that having one would keep you from being able to back door Roth after you have income too high for regular Roth contributions.
by Hub
Tue Nov 12, 2013 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling less than Successful lately
Replies: 58
Views: 7364

Re: Feeling less than Successful lately

You already have enough to never have to save again. Just quit work and take some time figuring out what you want to do. Seems you guys would have no problem living on just your wife's income for a few years while you search for something more satisfying to do with your days.
by Hub
Thu Nov 07, 2013 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Would you cancel a term life policy in my position?
Replies: 19
Views: 2175

Re: Would you cancel a term life policy in my position?

I love your plan and agree that you are in a spot to switch to part time work sufficient to cover expenses any time you feel like it. Regarding the life insurance, I think it's something you reevaluate here in a few more years once the part time early retirement is in full swing. I bet you'll feel b...
by Hub
Wed Nov 06, 2013 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Would you relocate to a city with a wage tax? (Pittsburgh)
Replies: 42
Views: 4944

Re: Would you relocate to a city with a wage tax? (Pittsburg

I would be inclined to eliminate any city with an income tax specific to the city. Though the wiser advice here is probably to ignore it if everything else is a good fit for you. Except the commute part, don't do that no matter what.
by Hub
Wed Nov 06, 2013 9:53 am
Forum: Personal Consumer Issues
Topic: [CryptoLocker] UPDATE Important Info to protect your Data
Replies: 68
Views: 7957

Re: Back Up your files - Back up your files ....

Good reminder. I'm negligent in this regard and need to do better. I do have important photos in 3 different hard drives and important financial files both at home and work, but I could get caught with my pants down having not updated any backups for 6+ months pretty easily. Need to look into online...
by Hub
Wed Nov 06, 2013 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Scale back on 401k contributions for Roth IRA?
Replies: 16
Views: 2062

Re: Scale back on 401k contributions for Roth IRA?

To add to that, if the medical or HSA or itemized deductions get the taxable income below $72,500 and into the 15% bracket, at that point it may make more sense to switch over to the Roth willingly prepaying taxes at 15%.
by Hub
Wed Nov 06, 2013 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Scale back on 401k contributions for Roth IRA?
Replies: 16
Views: 2062

Re: Scale back on 401k contributions for Roth IRA?

Agree with sticking with the 401ks until they are both maxed before Roth at your income level. Another way to look at this is if you plan to retire early. At that point your income will be low and you can then pay the taxes on your 401k balances at a lower rate, much lower.
by Hub
Wed Nov 06, 2013 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Best place to start Coverdell ESA account?
Replies: 12
Views: 2491

Re: Best place to start Coverdell ESA account?

letsgobobby wrote:Schwab
This is correct. Excellent free index fund and ETF options. No account fees. I have mine there.
by Hub
Wed Nov 06, 2013 7:48 am
Forum: Investing - Help with Personal Investments
Topic: Birthday check for a 34 yr old investor
Replies: 6
Views: 2131

Re: Birthday check for a 34 yr old investor

Your savings rate as a % of income appears to be excellent. That's the most important thing. I am also about your age and see age in bonds as too conservative, though that's a personal thing depending on willingness and need to take risk. If the market dropped in half over the next week would you be...
by Hub
Tue Nov 05, 2013 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Hit a milestone today [401(k)]
Replies: 76
Views: 9980

Re: Hit a milestone today [401(k)]

Excellent milestone. I look forward to celebrating it in our combined 401k balances and in each individual account. Though I doubt we work day jobs long enough to get there in both before IRA rollovers happen.
by Hub
Tue Nov 05, 2013 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Obamacare, increased health costs, disappearing 401k?
Replies: 41
Views: 4949

Re: Obamacare, increased health costs, disappearing 401k?

Employer is not saying there will be no 401k match- it will now be made at the end of year so that the employer will save the match on those employees who leave before year end. My employer has the same language regarding the annual approval of the 401k match by the board of directors. They've neve...
by Hub
Tue Nov 05, 2013 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Obamacare, increased health costs, disappearing 401k?
Replies: 41
Views: 4949

Re: Obamacare, increased health costs, disappearing 401k?

According to the Kaiser Family Foundation, the average employer contribution to an HSA is $653/year for single coverage and $1,150/year family coverage. For the HSA $3000 deductible plan I found this part interesting. My employer will contribute $250 for an individual's HSA and $500 for a family in...
by Hub
Mon Nov 04, 2013 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance is Necessary?
Replies: 14
Views: 2504

Re: Disability Insurance is Necessary?

With $800k in the bank I think almost any disability policy would be a waste of money. Between your savings, Social Security disability, and downsizing your expenses I can't imagine you wouldn't be able to make it work just fine. Just keep your expenses flexible.
by Hub
Fri Oct 25, 2013 1:39 pm
Forum: Investing - Theory, News & General
Topic: What to Read After the Bogleheads Guide to Investing?
Replies: 25
Views: 3184

Re: What to Read After the Bogleheads Guide to Investing?

Excellent recommendations throughout this thread. I don't remember which ones I read after Bogleheads (many), but the two that jumped out at me were All About Asset Allocation by Rick Ferri and The Only Guide to a Winning Investment Strategy You'll Ever Need by Larry E. Swedroe. However the previous...
by Hub
Mon Oct 21, 2013 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Getting Started As An Advisor
Replies: 19
Views: 3405

Re: Getting Started As An Advisor

This is a great thread and I appreciate all of the informative and thoughtful responses. I'm looking into how to fill my days when I quit my day job, and have considered this same path knowing that it will have to be OK if I make no money at it for the first several years.
by Hub
Thu Oct 03, 2013 10:56 am
Forum: Investing - Theory, News & General
Topic: Take the Risk Test For 100% Stock
Replies: 14
Views: 2900

Re: Take the Risk Test For 100% Stock

Thanks for the excellent post and subsequent discussions.
by Hub
Sat Sep 28, 2013 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: New to HSA, is it a good fit?
Replies: 24
Views: 2757

Re: New to HSA, is it a good fit?

I'd max the HSA before any other tax advantaged account. You save on FICA taxes if taken directly from your paycheck, which is 6.2% of your salary. Agreed. I max my HSA and still am not maxing my 401k. I also pay cash for medical expenses and don't touch the HSA. It's the most tax free investment I...
by Hub
Tue Sep 24, 2013 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Going without a pre-nup?
Replies: 255
Views: 18407

Re: Going without a pre-nup?

I think that an attorney would advise you to form a limited partnership, or other entity, and transfer your assets to the new entity prior to marriage. (A limited partnership would require you to have a partner, to be at least as a nominal member of the partnership. The partner should be someone th...
by Hub
Tue Sep 24, 2013 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Going without a pre-nup?
Replies: 255
Views: 18407

Re: Going without a pre-nup?

hicabob wrote:Perhaps a generous pre-nup is the answer?
This is the way I tend to see it.
by Hub
Thu Sep 19, 2013 10:50 am
Forum: Investing - Help with Personal Investments
Topic: The market is on fire
Replies: 134
Views: 17278

Re: The market is on fire

Ahhh. Indeed he'll be right on that point again and again we'll just never know when ahead of time.

I was concerned that you were agreeing with it as a "new" future allocation philosophy.
by Hub
Thu Sep 19, 2013 10:23 am
Forum: Investing - Help with Personal Investments
Topic: The market is on fire
Replies: 134
Views: 17278

Re: The market is on fire

Rick Ferri wrote:Remember in the 1990s when John Bogle said that investors didn't need any international stocks? He might be right again, at least for a little while.

Rick Ferri
Rick, I would be interested in an elaboration of your thoughts on this.

Thanks.
by Hub
Wed Sep 18, 2013 2:19 pm
Forum: Investing - Theory, News & General
Topic: Looking for Book Recommendations: Landlording and RE investg
Replies: 9
Views: 1145

Re: Looking for Book Recommendations: Landlording and RE inv

I would like to do some reading on this too.