I don't have number for ROP (agent is working on it), but using a 2X figure for a 10 yr term, I get a guaranteed, tax free return of 12% if I hold it to maturity.
I don't see any products with such guaranteed ROI.
Its possible ROP may come with "if and but" and premium more than 2X, making it less desirable.
Also ROP doesn't make sense with 30 yr policy as you may not outlive the policy, the payout is same.
Search found 216 matches
- Sat Apr 06, 2013 10:19 pm
- Forum: Investing - Theory, News & General
- Topic: Term insurance and ROP
- Replies: 11
- Views: 1000
- Sat Apr 06, 2013 9:38 pm
- Forum: Investing - Theory, News & General
- Topic: Term insurance and ROP
- Replies: 11
- Views: 1000
Re: Term insurance and ROP
Thanks for your response.
Tfb -
I don't have quote for ROP. Agent told me its typically twice. I used the following calc
http://www.quickquote.com/ropCalculator
And calculated both 10 yrs and 20 yrs assuming 2x premium for ROP.
In both case I need to get 10%+ to recover in taxable account.
I'm in 28 federal, 10 state tax range.
Iorek, these are term insurance, not investment products. I'm wondering if buying term with ROP is better option.
I'm early 40, kid 1 goes to college in 5 yrs, kid 2 in 10 yrs.
I'm counting mortgage and kids education as two main liability, am I missing something ? Eligible for SS in 20 yrs.
Tfb -
I don't have quote for ROP. Agent told me its typically twice. I used the following calc
http://www.quickquote.com/ropCalculator
And calculated both 10 yrs and 20 yrs assuming 2x premium for ROP.
In both case I need to get 10%+ to recover in taxable account.
I'm in 28 federal, 10 state tax range.
Iorek, these are term insurance, not investment products. I'm wondering if buying term with ROP is better option.
I'm early 40, kid 1 goes to college in 5 yrs, kid 2 in 10 yrs.
I'm counting mortgage and kids education as two main liability, am I missing something ? Eligible for SS in 20 yrs.
- Sat Apr 06, 2013 8:45 pm
- Forum: Investing - Theory, News & General
- Topic: Term insurance and ROP
- Replies: 11
- Views: 1000
Term insurance and ROP
I used Yahoo finance to determine my Term insurance needs. After inputting college needs for kids along with current investment, expense and future SS for spouse, we came with the number. No debt, we rent but plan to buy house and it was added in determining our needs. Next 20 yrs is where we need most coverage, kids will be thru college by then and hopefully house is paid off and we will be ready to retire. Based on the need I got policies for following amount (haven't paid check but policies have been issued) 10 yrs - 250k 20 yrs - $1 mil 30 yrs - 250K I asked agent to diversify with two provider. Bigger policy is from Metlife, other two are from Transamerica. As per my agent both are Tier 1 provider with excellent rating (searching on we...
- Sat Apr 06, 2013 7:21 pm
- Forum: Personal Investments
- Topic: Ibond vs Muni
- Replies: 3
- Views: 1191
Ibond vs Muni
Need some input on the bonds side. Tax bracket federal 28, State 10 (CA) Married with 2 kids. I have invested 10k in ibond for 2013 (no other ibonds). The purpose for ibonds is to hold *some part* of emergency funds and possibly use for kids higher education. I have large (12 month emergency fund and a stable job), so I don't anticipate use of this money in next 4-5 years. Also at current income level, I do not qualify to use ibonds for education. Kid 1 go to college in 5 yr, kid 2 in 10 yrs. Not sure what would me my income and eligibility in future. Currently money is with Ally bank invested in "No penalty CD" (.91%). I can put additional 10k thru Spouse or invest in Vanguard California Intermediate-Term Tax-Exempt Fund Investor...
- Tue Apr 02, 2013 7:12 pm
- Forum: Investing - Theory, News & General
- Topic: Five Really Dumb Money Moves You've Got to Avoid
- Replies: 24
- Views: 5386
Re: Five Really Dumb Money Moves You've Got to Avoid
Investing in ESPP is fine, in fact you should do it, 15% discount. Holding on to ESPP is not generally recommended, sell ESPP and take profit.What if #3 is an employer offered ESPP investment?
I am really curious to know more as I am invested in my employer offered ESPP and 401(K) plans/benefits. What is the downside, please explain.
Invest based on your AA.
Avoid employer stock in 401k.
- Mon Mar 25, 2013 7:50 pm
- Forum: Personal Investments
- Topic: Where to put home down payment saving
- Replies: 8
- Views: 1596
Re: Where to put home down payment saving
For 2 year time frame, high yield CD and saving account are your best bet.
- Mon Mar 25, 2013 5:33 pm
- Forum: Personal Investments
- Topic: Simplification Advice
- Replies: 25
- Views: 5238
Re: Simplification Advice
Using a 3 fund portfolio, bonds goes in Retirement, International in Taxable and US stocks split between 401k and taxable based on your AA.
First you need to decide on your AA.
How are you planning to fully fund child 1 education ? You need to decide if you have enough left before spending 260K on education for child 1.
Also you need to remove emergency funds and college edu funds from retirement funds (you can move Cash and Ibonds for this purpose).
First you need to decide on your AA.
How are you planning to fully fund child 1 education ? You need to decide if you have enough left before spending 260K on education for child 1.
Also you need to remove emergency funds and college edu funds from retirement funds (you can move Cash and Ibonds for this purpose).
- Mon Mar 25, 2013 12:58 am
- Forum: Personal Investments
- Topic: ESPP:10% Discount & MSSB account [Morgan Stan. Smith Barney]
- Replies: 6
- Views: 950
Re: ESPP:10% Discount & MSSB account [Morgan Stan. Smith Bar
What if you sell every two months ? The cost of selling should be same ~25$, as its usually per transaction.
Of course this has both down and up side, share price can go up for month 1 batch or it can go down too.
Month 2 batch you are selling immediately.
Of course this has both down and up side, share price can go up for month 1 batch or it can go down too.
Month 2 batch you are selling immediately.
- Fri Mar 22, 2013 12:11 pm
- Forum: Personal Investments
- Topic: Clueless- Need Investment Advice
- Replies: 10
- Views: 1130
Re: Clueless- Need Investment Advice
401k = $240k Wellington Fund / VWELX = 20% Windsor / VWNDX = 20% 500 Index Admiral / VFIAX = 20% Pacific Stock Index / VPADX = 10% Develop Market Index / VDMAX = 10% Total Bond/ VBTLX = 10 % Long Term Bond / VBTLX = 10 % Cash = $75k ETF Industrial / VIS = 13% ETF Healthcare / VHT = 12% Total Stock / VTSMX = 25% Total International Stock / VGTSX = 25% Total Bond/ VBMFX= 25 % You have over-lapping funds, you think you are diversify by buying multiple fund but it reality you may not. Pacific Stock Index / VPADX is part of Develop Market Index Long Term Bond / VBTLX is part of Total Bond/ VBTLX Wellington Fund and Windsor overlaps with sp500 and bonds funds. Also you are over-weights in few sectors, they may or may not beat sp500 in long run.
- Tue Mar 19, 2013 7:17 pm
- Forum: Investing - Theory, News & General
- Topic: p2p lending (Lending Club, Prosper)
- Replies: 41
- Views: 7049
Re: p2p lending (Lending Club, Prosper)
I have used prosper and its fun investing but as a financial or investment tool, I won't recommend.
I have invested in past and return are not great, plus everyone is chasing high credit rated users.
One or two defaults and you are in red.
I have invested in past and return are not great, plus everyone is chasing high credit rated users.
One or two defaults and you are in red.
- Tue Mar 19, 2013 6:50 pm
- Forum: Personal Investments
- Topic: Portfolio Review for a New Family
- Replies: 7
- Views: 1958
Re: Portfolio Review for a New Family
This is what recommend - 80% stocks/20 bondsDesired
Asset Class Percentage
Large Cap 15.00%
Medium Cap 15.00%
Small Cap 10.00%
International 40.00%
Bond 20.00%
Cash 0.00%
30% Intl
40% for intl is high I think. Also when you calculate intl, its % of stocks. Keeping Intl at 30% = 80% of stock x.30 = 24% of total portfolio.
Also you are tilted towards small/mid cap.
80 - 24 = 56% US stocks
Large cap = 40%
Small/mid = 16%
So your allocation should look like this unless you want to tilt more on Intl or small/mid.
Large Cap 40.00%
Medium Cap 11.00%
Small Cap 5.00%
International 24.00%
Bond 20.00%
Cash 0.00%
- Tue Mar 19, 2013 6:17 pm
- Forum: Personal Investments
- Topic: Financial advice for a newbie high earner
- Replies: 78
- Views: 13022
Re: Financial advice for a newbie high earner
There are multiple site will will give you median salary for medical professional.
I know its a hard 15 years of studying and working, well deserved salary.
Buy a new car, you deserve it but only when you have max out 401k and have cash for entire payment.
Stay away from any advice which saves you taxes by investing in exotic things.
I know its a hard 15 years of studying and working, well deserved salary.
Buy a new car, you deserve it but only when you have max out 401k and have cash for entire payment.
Stay away from any advice which saves you taxes by investing in exotic things.
- Wed Mar 13, 2013 7:13 pm
- Forum: Personal Investments
- Topic: espp?
- Replies: 11
- Views: 1600
Re: espp?
Do company match for 401k (6% which is your company match).
Put rest in ESPP purchase (you can do 10% of your salary).
Sell ESPP ASAP. Use the ESPP money and start maximizing your 401k.
Repeat each espp cycle.
Put rest in ESPP purchase (you can do 10% of your salary).
Sell ESPP ASAP. Use the ESPP money and start maximizing your 401k.
Repeat each espp cycle.
- Tue Mar 12, 2013 6:54 pm
- Forum: Personal Investments
- Topic: Liquidating stocks from ESPP
- Replies: 4
- Views: 862
Re: Liquidating stocks from ESPP
Do you have your AA defined ? If your AA is defined, sell all and diversify based on your AA.
Here the reason, you are selling single company stock and diversifying into MF stocks.
When people are sitting on cash (low risk) and they want to go to stock (high risk), the tend to bring into chuck and enter slowly.
You are at same level (or you will be going from high risk (single stock) to moderate risk (diversified stocks and bonds)).
Here the reason, you are selling single company stock and diversifying into MF stocks.
When people are sitting on cash (low risk) and they want to go to stock (high risk), the tend to bring into chuck and enter slowly.
You are at same level (or you will be going from high risk (single stock) to moderate risk (diversified stocks and bonds)).
- Tue Mar 12, 2013 4:26 pm
- Forum: Personal Investments
- Topic: Help with 401k
- Replies: 7
- Views: 594
Re: Help with 401k
For 5K portfolio, emerging market component is miniscule. As your portfolio grow you can add ROTH IRA and add emerging to it.portfolio doesn't include any emerging markets
- Tue Mar 12, 2013 3:14 pm
- Forum: Personal Investments
- Topic: Help with 401k
- Replies: 7
- Views: 594
Re: Help with 401k
Your AA looks like 20/80 with 20% in Intl. For your age looks good.
You can also go little more on intl if you want to (25%).
Time is on your side, add as much as you can in 401k.
You can also go little more on intl if you want to (25%).
Time is on your side, add as much as you can in 401k.
- Mon Mar 11, 2013 5:31 pm
- Forum: Personal Investments
- Topic: Rollover to Vanguard [Portfolio Help]
- Replies: 2
- Views: 411
Re: Rollover to Vanguard [Portfolio Help]
What is your desired AA ?
Why 6 funds ? Three-fund portfolio should work for you.
http://www.bogleheads.org/wiki/Three-fund_portfolio
Why 6 funds ? Three-fund portfolio should work for you.
http://www.bogleheads.org/wiki/Three-fund_portfolio
- Mon Mar 11, 2013 5:29 pm
- Forum: Personal Investments
- Topic: IBond question - Confusion
- Replies: 13
- Views: 1597
Re: IBond question - Confusion
If you sell all 50K in Ibonds today and want to buy 50K ibonds with new rate, you can't because you are limited to 10K per yr of ibonds.However, I did not get this sentence. Can you please explain a bit "Another thing to keep in mind is that your iBond purchases are limited to 10K/year. So if you have 50k of iBonds with 0% fixed, and fixed rates go up tomorrow to 3%, it will take you 5 years to buy iBonds at the new rates selling the old ones."
So it will take 5 yrs to get 50K of ibonds.
- Thu Mar 07, 2013 7:36 pm
- Forum: Personal Investments
- Topic: ESPP question
- Replies: 9
- Views: 1175
Re: ESPP question
Option 1) Purchase about 5k in first offering period and hold for 2 years and purchase again next year after annual bonus when I can afford to purchase more. Option 2) Purchase about 5k in first offering period and immediately sell...pay the taxes on the gains and reinvest each offering period maximizing the 15+% discount each time. You need to hold for 18th month (after its issued) to gain maximum tax benefits. e.g. if you start on 1st Jan 2013, you get allocated on 30 June, 18th months from 1st July or 2 yr from 1 Jan 2013. Option2 should work for you, you don't lose anything and its minimum risk, you always get discounted rate. e.g if stock is 20$ 1st Jan 2013 and its 10$ on 30 June, you get for lowest of two ($8.50). Sell immediately a...
- Tue Mar 05, 2013 3:22 pm
- Forum: Personal Investments
- Topic: Help with 401k review
- Replies: 21
- Views: 1990
Re: Help with 401k review
Tax-adv + Taxable AA - 25/48/27 (440k) [retirement?] Taxable AA - 60/30/10 (250K) [down payment, emergency fund, education?] That correct description. First child goes to college in 5 yr, 2nd in 10 yrs. House, don't know, we live in very expensive area which might be under RE bubble currently. House price are 35x of rent. When I separated into two account (or xls), I have all cash/cd/saving right now sitting in short term, no bonds (60%) and individuals equity (individual stocks, think sp200) in stocks (40%). Its kind of funny money as I can move from one xls to other (its still taxable $$). This is what retirement AA looks today. I have Feed all info in FE. Cash 15%/ Bonds 14% / Large-cap stocks 24% Mid/small-cap stocks 15% / Internationa...
- Tue Mar 05, 2013 10:54 am
- Forum: Personal Investments
- Topic: Need to Push to Leave Broker/Become Own Financial Advisor
- Replies: 100
- Views: 9523
Re: Need to Push to Leave Broker/Become Own Financial Adviso
Check Flagship Voyager Services at VG, lots of benefits with 1$ million portfolio.
They provide financial plan (free) and Fee-based from Vanguard Asset Management Services too.
If you are not too sure, you can have them manage for you for few years (you get low cost funds), lower fee.
As you get more comfortable you can take control back.
https://personal.vanguard.com/us/whatwe ... s/flagship
They provide financial plan (free) and Fee-based from Vanguard Asset Management Services too.
If you are not too sure, you can have them manage for you for few years (you get low cost funds), lower fee.
As you get more comfortable you can take control back.
https://personal.vanguard.com/us/whatwe ... s/flagship
- Mon Mar 04, 2013 7:42 pm
- Forum: Personal Investments
- Topic: Need help with trying to help a friend [Saving towards goal]
- Replies: 11
- Views: 1662
Re: Need help with trying to help a friend [Saving towards g
Vanguard Target Retirement Funds are best way to start and invest 10k. As it grows more, then can go for 3 stock portfolio or stick with target fund.
Vanguard Target Retirement 2025 Fund is for who are 13 yrs away from retirement.
Vanguard Target Retirement 2025 Fund is for who are 13 yrs away from retirement.
- Mon Mar 04, 2013 6:58 pm
- Forum: Personal Investments
- Topic: Help with 401k review
- Replies: 21
- Views: 1990
Re: Help with 401k review
I used to maintain two XLS sheet. One for retirement (401k, IRA only) account and other tracking taxable (including emergency, short term, edu, retirement etc). I maintaining two different AA, one for pure retirement, other for mixed one (taxable) and it was driving me crazy. Tax-adv AA - 23/48/29 (240k) Taxable AA - 42/40/18 (450K) I really like your idea of splitting into two account - Retirement (taxable and tax-advantage) which will be ~440k range. Other is short term (down-pay, emer, edu etc) which is around 240K. I have started working on consolidating my xls to reflect the "new" accounts. New AA desired Tax-adv + Taxable AA - 25/48/27 (440k) Taxable AA - 60/30/10 (250K) Since I was maintaining two diff AA of bonds/stocks/in...
- Sun Mar 03, 2013 11:13 pm
- Forum: Personal Investments
- Topic: Allocation of investments
- Replies: 14
- Views: 1142
Re: Allocation of investments
Looks like you have ~600k in assets + 300k in home equity.
You get 60k pension and you are saving 5K from it in IRA.
And you are not withdrawing from 600K.
Is there a way you can move to smaller, cheaper house and have some house equity work for you or/and pay no mortgage
For your age, 65 bonds, 25 stocks, 10 intl would be right combination.
You get 60k pension and you are saving 5K from it in IRA.
And you are not withdrawing from 600K.
Is there a way you can move to smaller, cheaper house and have some house equity work for you or/and pay no mortgage
For your age, 65 bonds, 25 stocks, 10 intl would be right combination.
- Sun Mar 03, 2013 2:16 pm
- Forum: Personal Investments
- Topic: Help with 401k review
- Replies: 21
- Views: 1990
Re: Help with 401k review
Your description is exactly what I see. I think you can tell FE which accounts can change and which cannot, but it has been a while since I set things up. In any case, it lets me change any and all the accounts and even suggests funds that are not availabel in my 401(k). I must've lied to it earlier that I could use any Vanguard fund in any and all accounts. In any event, in Vanguard, I have entered my other accounts by hand in the "Outside accounts" section, so these are passed on to Financial Engines automatically. FE has changed since I last looked at it, so thanks for making me look again. Re: FE, we are on same page, you are having access to their full version. Although I'm curious why FE want you to go heavy on bonds. Its p...
- Sun Mar 03, 2013 2:00 pm
- Forum: Personal Investments
- Topic: Advice on Moving Money from Chase into Index Fund?
- Replies: 19
- Views: 6513
Re: Advice on Moving Money from Chase into Index Fund?
You need a managed portfolio (bonds, stocks and Intl). That 3-fund.
If you want single fund, go with target retirement.
For your age that would be 2025 or 2030, another advantage of target funds, they rebalanced automatically each yr.
VG had all these funds at fraction of cost (ER) compared to Chase.
How to move:
82k is in SEP IRA, right ?
You need to check cost of moving funds out, they might charge a fee.
It needs to be converted to cash and then do a IRA roll over.
Call VG and they can take care for you for conversion.
If you want single fund, go with target retirement.
For your age that would be 2025 or 2030, another advantage of target funds, they rebalanced automatically each yr.
VG had all these funds at fraction of cost (ER) compared to Chase.
How to move:
82k is in SEP IRA, right ?
You need to check cost of moving funds out, they might charge a fee.
It needs to be converted to cash and then do a IRA roll over.
Call VG and they can take care for you for conversion.
- Sat Mar 02, 2013 9:25 pm
- Forum: Personal Investments
- Topic: Help with 401k review
- Replies: 21
- Views: 1990
Re: Help with 401k review
Yes, it looks like it in first section. Next one has all my investment with current and new rating.
3rd section is current and future investment, retirement age.
Last section shows how much I want in retirement and my chance of making it.
If I agree to all, in next screen, it will implement the plan with single click, go to all my accounts and make changes.
If I remember VG FE will suggest changes only to VG accounts but will consider other investment when suggesting changes.
I'll slowly start further consolidation into single account per IRA/ROTH.
3rd section is current and future investment, retirement age.
Last section shows how much I want in retirement and my chance of making it.
If I agree to all, in next screen, it will implement the plan with single click, go to all my accounts and make changes.
If I remember VG FE will suggest changes only to VG accounts but will consider other investment when suggesting changes.
I'll slowly start further consolidation into single account per IRA/ROTH.
- Sat Mar 02, 2013 12:40 pm
- Forum: Personal Investments
- Topic: Help with 401k review
- Replies: 21
- Views: 1990
Re: Help with 401k review
I have ~450K in taxable (which is ~2 times of Retirement ~240k). Re: FE I use their full version thru my 401K provider. VG FE is crippled version and isn't that useful. Since I have linked it to all my all other IRA accounts (VG, FIdo), it can look into entire portfolio and advice. Last time I ran it give me very specific advice. VG portfolio analyzer marked SPTN INTER TREAS BND ADV as bond fund with "high" interest rate sensitivity. I think FE is seeing the same and asking me to move into GNMA. I have exposure in VG emerging mkt index, FE want me move into VG dev Mkt index. And reduce bonds and move into Med/sm cap, which doesn't make sense to me. FE is really powerful tool but as with any other computer software, we need to use ...
- Sat Mar 02, 2013 12:16 pm
- Forum: Personal Investments
- Topic: New Job = New 401k options -- Any Advice?
- Replies: 12
- Views: 1494
Re: New Job = New 401k options -- Any Advice?
My understanding of DCA is that "Dollar cost averaging is an investment strategy that takes the form of investing equal monetary amounts regularly and periodically over specific time periods (such as $100 monthly for n months) in a particular investment or portfolio"
My point is that one need to have exposure to bonds, stocks and international in 401k with periodic investing and re-balance portfolio ER at end of year to match your AA.
My point is that one need to have exposure to bonds, stocks and international in 401k with periodic investing and re-balance portfolio ER at end of year to match your AA.
- Fri Mar 01, 2013 9:52 pm
- Forum: Personal Investments
- Topic: Questions on rebalancing & option changes
- Replies: 16
- Views: 1212
Re: Questions on rebalancing & option changes
I would move out of individual stocks and align with AA.
What is your desired AA ?
What is your desired AA ?
Also moving to admiral is no brainier, same stock with lower ER (need to have 10K, which you have).Abbott (ABT) 6% $38,305
Abbvie (ABBV) 6.4% $40,052
- Fri Mar 01, 2013 9:45 pm
- Forum: Personal Investments
- Topic: Portfolio Help / Design
- Replies: 3
- Views: 868
Re: Portfolio Help / Design
For Taxable MF, careful of gains, if you sell, you may have to pay for short and long term gains.Taxable Accounts:
Managed Portfolio- 84k
Location- Chase
Investments- 15-18 mutual funds
Additional: Looking to move to Vanguard shortly. Can provide fund list if necessary.
Stock Investments- IBM
Amount: 8k
Look at each fund and start converting one's with long term gain or funds showing loss. Might be worthwhile to spread over next tax year.
IBM is solid company with good dividend and tax efficient but its a single stock, I would recommend reducing the IBM allocation slowly.
- Fri Mar 01, 2013 7:12 pm
- Forum: Personal Investments
- Topic: Help with 401k review
- Replies: 21
- Views: 1990
Re: Help with 401k review
Current Allocation and desired (fixed): Bonds 23% US 48% (33 large, 15 Med/sm) Intl 29% I have 2x in taxable account with 42% in cash/bonds. Hence I'm going 23% in retirement. Re: FE I talked with them about a year ago, they won t tell me how their engine work as its propriety. I have been using FE for past 3 years and it seems to follow boglehead philosophy for most part. - It will diversify your portfolio - invest in index funds - choose low ER - It can look into other IRA (if you feed him) and would suggest optimum allocation based on ER. And of course project how much you can earn in retirement looking at multiple factor (age, contribution, allocation etc). Also I notice it will react to market condition and suggest tweak if necessary (...
- Fri Mar 01, 2013 6:51 pm
- Forum: Personal Investments
- Topic: First Time Portfolio Allocation Advice
- Replies: 8
- Views: 1937
Re: First Time Portfolio Allocation Advice
Convert to Admiral share wherever possible.
Look at adding Total bond market bonds funds and adjusting other bonds accordingly.
Look at adding Total bond market bonds funds and adjusting other bonds accordingly.
- Fri Mar 01, 2013 6:42 pm
- Forum: Personal Investments
- Topic: New Job = New 401k options -- Any Advice?
- Replies: 12
- Views: 1494
Re: New Job = New 401k options -- Any Advice?
401k is forced DCA you like or not. You need to put contribution in each pay check to get matching contribution.
- Fri Mar 01, 2013 6:40 pm
- Forum: Personal Investments
- Topic: AA: Target Date 70%, Dividend 20%, SmCap 10%?
- Replies: 8
- Views: 1256
Re: AA: Target Date 70%, Dividend 20%, SmCap 10%?
You need to look at Retirement fund as whole (his and her), combing all 401k, IRA, Roth.
If wife wants to go to all stocks, international in her 401K, you should balance your portfolio more in US stocks and bonds to maintain your AA.
Review after a yr and re-balance, maybe next yr she decides to go all small-cap or other something equivalent.
If wife wants to go to all stocks, international in her 401K, you should balance your portfolio more in US stocks and bonds to maintain your AA.
Review after a yr and re-balance, maybe next yr she decides to go all small-cap or other something equivalent.
- Fri Mar 01, 2013 6:34 pm
- Forum: Personal Investments
- Topic: 401K advice needed please
- Replies: 8
- Views: 897
Re: 401K advice needed please
Here you go...
http://www.bogleheads.org/wiki/Category:Bonds
Since 100k is emergency funds, I-bond might not be right for you.
You can do 50K in CD, Ally has good rate. You can break into 10K each and create ladder if you like.
For rest you can split between short or med-term tax-exempt bonds (earning is tax exempt at Federal level)
http://www.bogleheads.org/wiki/Category:Bonds
Since 100k is emergency funds, I-bond might not be right for you.
You can do 50K in CD, Ally has good rate. You can break into 10K each and create ladder if you like.
For rest you can split between short or med-term tax-exempt bonds (earning is tax exempt at Federal level)
- Fri Mar 01, 2013 12:19 am
- Forum: Personal Investments
- Topic: 401K advice needed please
- Replies: 8
- Views: 897
Re: 401K advice needed please
Desired Asset allocation: 100% stocks - no Bonds ?
Desired International allocation: 0% - why ?
Taxable
0 (100K cash in bank) - CD ? or just in saving earning 0% ?
Have you looked at putting some in I-bonds or Muni ?
Desired International allocation: 0% - why ?
Taxable
0 (100K cash in bank) - CD ? or just in saving earning 0% ?
Have you looked at putting some in I-bonds or Muni ?
- Fri Mar 01, 2013 12:11 am
- Forum: Personal Investments
- Topic: New Job = New 401k options -- Any Advice?
- Replies: 12
- Views: 1494
Re: New Job = New 401k options -- Any Advice?
401k is best way to DCA. You need to have exposure to bonds, stocks and international in 401k so that DCA works. I dont know how much money you have in other IRA or ROTH. Let's say you have 50K in them. You need to AA them based on your allocation. Lets say you have AA of bonds/stocks/intl - 30/50/30 Current 401k - $0. Take three funds in 401k, bonds/stocks/Intl, assigned it based on your AA. At end of year 1, let's say you have 10K in 401k. Now re-balance your 401k account to move as much as you can in VG from bonds/intl (watch for early redm fee's). Adjust your other allocation to be in line with your AA. Yes, you pay high ER for one year but you get DCA advantage. At end of yr 1, you have 10K in VG, 0 in bonds, 0 in intl in 401k. Repeat ...
- Thu Feb 28, 2013 11:48 pm
- Forum: Personal Investments
- Topic: AA: Target Date 70%, Dividend 20%, SmCap 10%?
- Replies: 8
- Views: 1256
Re: AA: Target Date 70%, Dividend 20%, SmCap 10%?
Do you have any money invested in other 401K, IRA or ROTH (HIS or HER ?)
Based on TR fund date, looks like you guys are in mid to late 20s ?
If you are starting, your desired allocation should work.
You don't have any good international fund thou.
Based on TR fund date, looks like you guys are in mid to late 20s ?
If you are starting, your desired allocation should work.
You don't have any good international fund thou.
- Thu Feb 28, 2013 11:39 pm
- Forum: Personal Investments
- Topic: New 401k Contributions [Portfolio Help]
- Replies: 6
- Views: 530
Re: New 401k Contributions [Portfolio Help]
why Desired International allocation: 0% of stocks ?
Also Bonds and cash are same ? Why do you want to keep 25% in cash ?. If you want cash, it should be ~10%.
Not many good options in 401k.
You can invest in RETIREMENT 2010 FUND (TRRAX)(.61).
This should have ~60% bonds, adjust other fund accordingly.
Also Bonds and cash are same ? Why do you want to keep 25% in cash ?. If you want cash, it should be ~10%.
Not many good options in 401k.
You can invest in RETIREMENT 2010 FUND (TRRAX)(.61).
This should have ~60% bonds, adjust other fund accordingly.
- Thu Feb 28, 2013 11:29 pm
- Forum: Personal Investments
- Topic: Help with 401k review
- Replies: 21
- Views: 1990
Re: Help with 401k review
I have edited to include my 401k account only to get focus advice on that.
I'll add taxable once 401k is in tune with boglehead philosophy.
Re: divestify, I'll drop health care.
Since I dont have REIT, I'll add some REIT ~5-10% in retirement funds.
For precious metal, I was more thinking in terms of buying physical gold coins over time.
ruralavalon : I like your idea of dividing into 3 account (retirement, tax-lomng-term(ret, edu), tax-short-term(down pay, emer fund))
I'll add taxable once 401k is in tune with boglehead philosophy.
Re: divestify, I'll drop health care.
Since I dont have REIT, I'll add some REIT ~5-10% in retirement funds.
For precious metal, I was more thinking in terms of buying physical gold coins over time.
ruralavalon : I like your idea of dividing into 3 account (retirement, tax-lomng-term(ret, edu), tax-short-term(down pay, emer fund))
- Wed Feb 27, 2013 10:59 pm
- Forum: Personal Investments
- Topic: converting 401k from ex employer to roth ira
- Replies: 3
- Views: 1278
Re: converting 401k from ex employer to roth ira
When you move from Pre-tax account (e.g 401K) to Roth IRA, you need to pay taxes.
401k is added as ordinary income and you are taxed based on that.
401k is added as ordinary income and you are taxed based on that.
- Mon Feb 25, 2013 11:53 pm
- Forum: Personal Investments
- Topic: Help with 401k review
- Replies: 21
- Views: 1990
Help with 401k review
Fellow bogleheads, looking for some advice. I have been reading on wiki and posts here and recently finished "boglehead guide to investing". Married with 2 kids, early 40 - 28% federal, 10% state (CA) HIS 401k each year - Max Her IRA each year - Max Will start Roth for him and her contribution from this year (2012) Retirement Current Total ~240K Current Allocation and desired: Bonds 23% US 52% (33 large, 15 Med/sm) Intl 29% Fidelity (Self managed IRA) - HIS Symbol Name Exp Ratio % FIBIX SPTN INTER TREAS BND ADV CLASS 0.10 5.36% FSCKK SPRTN Mid-cap MKT INDEX ADV CLASSS 0.22 4.70% FSEMX SPRTN EXT MKT INDEX ADV CLASS 0.07 4.05% FSIIX SPARTAN INTL INDEX ADV CLASS 0.17 13.45% FUSEX SPARTAN 500 INDEX FD ADV CLASS 0.07 23.56% VG (Self ma...
- Mon Feb 18, 2013 1:53 pm
- Forum: Personal Investments
- Topic: Investing in the United States vs. Investing in Philippines
- Replies: 5
- Views: 1409
Re: Investing in the United States vs. Investing in Philippi
In terms of AA, Philippine should be part of your International allocation.
Within International allocation, its subset of emerging market.
Within emerging market, its a specific sector, one country.
You should not be putting more than 10% in specific sector within a category.
So if you have 100k in international stocks, maximum you should go is 10K for a country.
Within International allocation, its subset of emerging market.
Within emerging market, its a specific sector, one country.
You should not be putting more than 10% in specific sector within a category.
So if you have 100k in international stocks, maximum you should go is 10K for a country.
- Sat Feb 09, 2013 4:27 pm
- Forum: Personal Finance (Not Investing)
- Topic: Ready to Retire/Pay off mortgage?
- Replies: 3
- Views: 998
Re: Ready to Retire/Pay off mortgage?
First off you need to pay off the mortgage. 3.1 mil - 0.1 = 3 mil left
That would reduce your monthly expense to 7500$.
You have pension about $1500/month and Rental property brings in $1800/month = 3000 (lets keep 300 for any rental related expense).
You need to get 7500-3000 = 4000 / month to maintaining your current lifestyle.
With @2% withdrawal will get you 60k per year or 5000$/ month.
Assuming 3-4% market return on average/yr, you can retire easily without worrying about money running out.
SS at 70 will bring in additional income.
That would reduce your monthly expense to 7500$.
You have pension about $1500/month and Rental property brings in $1800/month = 3000 (lets keep 300 for any rental related expense).
You need to get 7500-3000 = 4000 / month to maintaining your current lifestyle.
With @2% withdrawal will get you 60k per year or 5000$/ month.
Assuming 3-4% market return on average/yr, you can retire easily without worrying about money running out.
SS at 70 will bring in additional income.
- Thu Feb 07, 2013 8:58 pm
- Forum: Personal Investments
- Topic: Portfolio review - 35 year old trying to take control
- Replies: 8
- Views: 2942
Re: Portfolio review - 35 year old trying to take control
What ever portfolio you choose, you need to get into market slowly to avoid any shock to her.
Market is at high, chances of 3-5% pull back are high but no one knows for sure.
Target fund or 3 fund portfolio should work for her.
While you are hashing out details and waiting to money to move into stock, I would highly recommend opening a Ally or equivalent account.
Ally is paying .90% for saving, its FDIC insured and you can open online in minutes.
0.90% is not much but better than 0%.
Market is at high, chances of 3-5% pull back are high but no one knows for sure.
Target fund or 3 fund portfolio should work for her.
While you are hashing out details and waiting to money to move into stock, I would highly recommend opening a Ally or equivalent account.
Ally is paying .90% for saving, its FDIC insured and you can open online in minutes.
0.90% is not much but better than 0%.
- Thu Feb 07, 2013 1:28 am
- Forum: Personal Investments
- Topic: Moving 401k to IRA - Market timing.
- Replies: 18
- Views: 3040
Re: Moving 401k to IRA - Market timing.
Grap0013, Our combined IRA/401k is ~250k. Plus I have ~450K in taxable (CD, cash, muni, VG index, T Rowe (very tax inefficient funds, funded when I know nothing about investing) and company stock (espp, rsu)). Believe or not we rent and life frugal. I differ from rest of folks here in treating two of them different. Different risk level, different time frame. IRA/401k is for retirement, fixed time, can't withdraw. Money in taxable is for various other purpose, primary emergency funds, kids edu, travel, down payment and retirement etc. I don't make 211k, I wish I could. Till 2 yrs I was in 25% bracket, RSU is driving comp higher for past 2 yrs. I actually never checked to see if I was eligible for Roth. I would maximum 401K, put wife IRA and...
- Wed Feb 06, 2013 5:36 pm
- Forum: Personal Investments
- Topic: Moving 401k to IRA - Market timing.
- Replies: 18
- Views: 3040
Re: Moving 401k to IRA - Market timing.
I'm going to explore backdoor option. I'll reach out to my tax guy to see if he is aware.
Otherwise, I'll move to MM/Bonds and then initiate the transfer.
Thanks everyone for your help.
Otherwise, I'll move to MM/Bonds and then initiate the transfer.
Thanks everyone for your help.
- Wed Feb 06, 2013 4:39 pm
- Forum: Personal Investments
- Topic: $101,000 to 'play' with...what would you do?
- Replies: 36
- Views: 3853
Re: $101,000 to 'play' with...what would you do?
You need to determine what AA you want.
Are you conservation, moderate or aggressive ?
For conservative 40/60 bonds/stocks
Aggressive 20/80 bonds/stocks.
Once you determine that, you need to decide, whether you want to enter market slowly or all in one go.
Dipping your feet in mkt slowly is always good.
Let's start with 15K.
One correction- For taxable account, you should buy state or national Muni Intermediate term.- 6k (40%)
Total US stock mkt index - 5.25k (35%)
Total intl mkt - 3.75k (25%)
Are you conservation, moderate or aggressive ?
For conservative 40/60 bonds/stocks
Aggressive 20/80 bonds/stocks.
Once you determine that, you need to decide, whether you want to enter market slowly or all in one go.
Dipping your feet in mkt slowly is always good.
Let's start with 15K.
One correction- For taxable account, you should buy state or national Muni Intermediate term.- 6k (40%)
Total US stock mkt index - 5.25k (35%)
Total intl mkt - 3.75k (25%)
- Wed Feb 06, 2013 1:19 am
- Forum: Personal Investments
- Topic: Moving 401k to IRA - Market timing.
- Replies: 18
- Views: 3040
Re: Moving 401k to IRA - Market timing.
JW Nearly Retired: I looked at "backdoor Roth", excellent option if I had no IRA. With existing IRA I will be hit by Pro-rate. lindisfarne : Sorry if post was not clear. here more detail I have my retirement account spread across 1) Fidelity IRA (110k) 2) VG IRA (25k) 3) Schwab Old 401k (39k) 4) Current 401k (20k) I'm want to move from Schwab 401k to VG IRA. I have invested at Schwab managed 401k with all VG options (actually financial engine recommended the funds). The ER at Schwab 401k are as low as it can get, but I need to pay $5 /qtr as administrative fee (No way to waive them). I called Schwab today to understand how 401k to IRA roll-over will work. Schwab not can't do in-kind transfer. They will sell the stock (the whole pr...