Search found 522 matches

by Fishing50
Sun Jul 25, 2021 9:04 am
Forum: Investing - Theory, News & General
Topic: Do you use taxable gains/dividends to cover expenses?
Replies: 25
Views: 2994

Re: Do you use taxable gains/dividends to cover expenses?

Yes, Vanguard dividends are directly deposited into our checking account. In retirement, dividends will be combined with pension income for spendable income. Right now, we're saving them, hoarding cash for retirement next year. During accumulation, dividends were combined with monthly taxable invest...
by Fishing50
Sun Jul 25, 2021 8:54 am
Forum: Personal Investments
Topic: Moving taxable equities to Roth??
Replies: 4
Views: 648

Re: Moving taxable equities to Roth??

You have until you file 2021 taxes to fund spouses Roth IRA, I recommend funding it by other means than selling VTI and VEA. Turning off dividend reinvestment is a good option, Vanguard has an option to deposit dividends directly into an outside checking account which helps increase cash flow. Just ...
by Fishing50
Thu Jul 22, 2021 8:21 am
Forum: Personal Investments
Topic: Portfolio Feedback
Replies: 11
Views: 1118

Re: Portfolio Feedback

You've chosen a good course. As your investment accounts grow, future contributions will have less effect. You'll need to track your overall portfolio allocation to determine where new contributions are required to get the portfolio into target allocation. Your contribution plan looks good for now. ...
by Fishing50
Wed Jul 21, 2021 8:12 am
Forum: Personal Investments
Topic: Portfolio Feedback
Replies: 11
Views: 1118

Re: Portfolio Feedback

I am currently in the process of moving my taxable investment account from Wealthfront to Vanguard, and figured I’d take the opportunity to see if I might get some feedback on my overall investment portfolio Taxable (Wealthfront—Plan to transfer in-kind to Vanguard) 1% cash 8%/ VTI/Vanguard Total S...
by Fishing50
Sat Jul 17, 2021 9:38 am
Forum: Personal Investments
Topic: Portfolio Review
Replies: 7
Views: 1295

Re: Portfolio Review

Welcome to the forum, you are already a darn good Boglehead! Mimicking Target Retirement 2045 (VTIVX) is a perfect course at this point. The allocation will become less aggressive as you near retirement, so you don't need to worry that it seems aggressive now. You are doing well at tax efficiency wi...
by Fishing50
Sat Jul 17, 2021 8:59 am
Forum: Personal Investments
Topic: Reinvest dividends or cash distributions in taxable?
Replies: 26
Views: 3013

Re: Reinvest dividends or cash distributions in taxable?

We like taking dividends in cash, during retirement dividends will supplement pension income. During accumulation dividends were used to supplement income for unexpected expenses or combined with monthly taxable investments to reduce the number of tax lots to track. Taking dividends in cash, also he...
by Fishing50
Sun Jul 11, 2021 1:56 pm
Forum: Personal Investments
Topic: Portfolio Feedback for Military Member
Replies: 7
Views: 986

Re: Portfolio Feedback for Military Member

We're almost 20yrs ahead of you. I agree with Nords about gutting out 20yrs, but my career brought an unexpected promotion and good duty stations late in my career which made staying after 20yrs very rewarding professionally and financially. We'll be fully retired at 52yrs old. You have a very detai...
by Fishing50
Fri Jul 02, 2021 9:14 am
Forum: Personal Investments
Topic: seeking advice on TSP interfund transfer
Replies: 13
Views: 1396

Re: seeking advice on TSP interfund transfer

Transfer the money into individual funds anytime. Timing doesn't matter because the money is already invested, very little change investing it differently. Tune out the noise from the news, it's a distraction from long term investing goals. I'd recommend a 80/20 or 90/10 asset allocation which allow...
by Fishing50
Sun Jun 27, 2021 8:45 am
Forum: Personal Investments
Topic: Female Friend will say "Now What ?"
Replies: 58
Views: 12880

Re: Female Friend will say "Now What ?"

If pension & SS cover expenses, 75% equities seems reasonable to me. The bond portion of our portfolio is larger than any reasonable expenditure I can imagine. We stay invested to ensure our portfolio keeps up with inflation, this concern is less at 65 than for us at 51yrs old. She should start ...
by Fishing50
Mon Jun 21, 2021 7:11 pm
Forum: Personal Investments
Topic: Leaving military. Stay in Roth TSP or transfer to Roth IRA?
Replies: 23
Views: 1927

Re: Leaving military. Stay in Roth TSP or transfer to Roth IRA?

I’m feeling pretty stupid and this has me completely confused. My son has a Roth TSP. He has no traditional (pre-tax) TSP. Some of the contributions to the Roth TSP did occur while he was in a tax free combat zone. There is no differentiation on his most recent TSP statement between contributions w...
by Fishing50
Mon Jun 21, 2021 8:29 am
Forum: Personal Investments
Topic: Leaving military. Stay in Roth TSP or transfer to Roth IRA?
Replies: 23
Views: 1927

Re: Leaving military. Stay in Roth TSP or transfer to Roth IRA?

He has no TSP loan. I thought I read somewhere he had 90 days to make the decision. I’m happy to be wrong about this. He does have significant tax exempt contributions. It’s sounding like the Roth TSP has accounted for them and maybe it’s best not to transfer and open the door to that getting messe...
by Fishing50
Sat Jun 19, 2021 9:49 am
Forum: Personal Finance (Not Investing)
Topic: At what point in retirement does making long-term investments drop in priority? Another existential question.
Replies: 9
Views: 1431

Re: At what point in retirement does making long-term investments drop in priority? Another existential question.

I agree with the others, it's complicated...I started in the same place a few years ago. You can stop worrying about tomorrow, now. I think tax efficient, early retirement consumption from brokerage, Roth, and IRA is the perfect solution. Resolving the same dilemma from the complicated buckets and l...
by Fishing50
Fri Jun 18, 2021 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Taxes in Retirement with Pension
Replies: 12
Views: 2277

Re: Taxes in Retirement with Pension

You are doing extremely well approaching 40 yrs old with current assets about $1.3MM. You're easily on glideslope to retire when you become pension eligible. You properly identified the tax challenge, sometime called the tax torpedo. You should map current and future tax brackets to understand the r...
by Fishing50
Fri Jun 18, 2021 9:35 am
Forum: Investing - Theory, News & General
Topic: What Is Your Longest-Held Investment?
Replies: 127
Views: 9436

Re: What Is Your Longest-Held Investment?

IWB (Russell 1000) 3/31/2003
by Fishing50
Wed Jun 16, 2021 8:18 am
Forum: Personal Investments
Topic: 33 year old Newbie
Replies: 7
Views: 1208

Re: 33 year old Newbie

Stay on course, you are doing well! Keep taxable 100% equities for tax efficiency. Total international in taxable will provide a foreign tax credit at tax time, and it's more diverse than I Fund in TSP. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement Roth TSP is definitely the correct d...
by Fishing50
Fri May 28, 2021 9:01 am
Forum: Personal Investments
Topic: Review and questions about investing our emergency fund
Replies: 15
Views: 1783

Re: Review and questions about investing our emergency fund

For tax efficiency, keep taxable brokerage all intl or US equities. If the overall portfolio needs more bonds, add bonds in 401K, 457, etc. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement If you both have stable jobs with reliable income, monthly taxable investments, and a taxable broke...
by Fishing50
Sat May 22, 2021 10:30 am
Forum: Personal Investments
Topic: Military Family seeking advice
Replies: 26
Views: 2617

Re: Military Family seeking advice

With reliable government income and significant taxable assets, you don't need a large EF. Get that money invested. If you have unexpected bills, you can reduce taxable investments until the bill is paid. Taking taxable investment dividends in cash increases spendable income, or they can be added to...
by Fishing50
Sun May 09, 2021 3:44 pm
Forum: Personal Investments
Topic: Draw down inherited IRA before RMDs start at 72?
Replies: 12
Views: 1192

Re: Draw down inherited IRA before RMDs start at 72?

Sure, if I'm comparing converting an IRA to a Roth vs withdrawing assets from an IRA, the overall benefit will probably be better do the conversions. In my case, I plan to convert/withdraw to the top of the 22% bracket (or whatever it is at the time) for a period of about 10 years. I say convert/wi...
by Fishing50
Wed Apr 28, 2021 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning with 2 Nice Pensions
Replies: 27
Views: 3013

Re: Retirement Planning with 2 Nice Pensions

I once worked (twice) with a retired O-6. He couldn't manage to ever extract himself. Returned once as a GS.... then retired again..... then was back a few years later as a contractor. Worked until months of his death. Had more money than he'd need for several lifetimes but couldn't find other aven...
by Fishing50
Wed Apr 28, 2021 1:17 am
Forum: Personal Investments
Topic: Newbie investor in early 30s requesting critique of portfolio and investment plan (*edited*)
Replies: 15
Views: 1915

Re: Newbie investor in early 30s requesting critique of portfolio and investment plan (*edited*)

Emergency funds: Have 6 months of emergency funds Taxable 12% Cash for investing 9% Total Stock Market Index Fund (VTSAX) (ER: 0.14%) 1. Yes, it is sensible to max out my 401k and government 457(b) while you can. If the situation changes in the future, adjust accordingly. Hopefully contributions ca...
by Fishing50
Mon Apr 26, 2021 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning with 2 Nice Pensions
Replies: 27
Views: 3013

Re: Retirement Planning with 2 Nice Pensions

Currently in 24% bracket, in retirement, we'll be towards the top of 22% bracket even without the wife's 2nd job, so we'll mostly be in the same brackets pre and post retirement. My current thinking is that I'd like to convert to Roth because of 1. estate planning. 2. protection from potential futu...
by Fishing50
Tue Apr 20, 2021 3:56 pm
Forum: Personal Investments
Topic: TSP Questions
Replies: 15
Views: 1586

Re: TSP Questions

+1, close enough.
We've chosen a more complicated plan because I've been a member of this community.
by Fishing50
Sun Apr 18, 2021 11:20 am
Forum: Personal Finance (Not Investing)
Topic: TSP limited withdrawal options
Replies: 3
Views: 623

Re: TSP limited withdrawal options

If your withdrawal rate is low enough, L income will preserve capital but not provide much future growth (which may not matter to your situation). Depending on your future and current tax brackets you may want to withdraw more now, instead of waiting until RMDs are combined with SS and your pension....
by Fishing50
Sun Apr 18, 2021 10:23 am
Forum: Personal Investments
Topic: Portfolio review - military retirement? Help
Replies: 16
Views: 1696

Re: Portfolio review - military retirement? Help

With your assets, you won't get caught in the OMY cycle...you might choose to stay like we did. We got some nice duty stations, an unexpected promotion, and the the obvious benefit of longevity raises. 4% Safe Withdrawal Rate is reasonable especially with a pension. A smaller with withdrawal rate mo...
by Fishing50
Mon Mar 15, 2021 9:37 am
Forum: Personal Investments
Topic: tax free TSP roll outs
Replies: 11
Views: 950

Re: tax free TSP roll outs

Has anyone heard of a strategy that moves an IRA into the TSP and then back out as a tax free IRA (ROTH, I'm assuming)? I heard part of an investment seminar talking about doing just that, rolling your IRA into the TSP and back out as a tax free vehicle. It sounds a bit fishy so I thought I might a...
by Fishing50
Sun Mar 14, 2021 10:33 am
Forum: Personal Investments
Topic: Options for bridging the gap in early retirement?
Replies: 26
Views: 4477

Re: Options for bridging the gap in early retirement?

I like 72(t) withdrawals instead of Roth conversions to avoid early withdrawal penalties.
by Fishing50
Thu Mar 11, 2021 6:17 pm
Forum: Personal Investments
Topic: Retirement Plan: Portfolio Allocation and Goals
Replies: 11
Views: 1793

Re: Retirement Plan: Portfolio Allocation and Goals

I'm thinking I want around a 70/30 to 60/40 Stock to bond ratio when I retire, wanting to hit a 7% average annual return. With my goals in mind what should my allocation be for 43-53 and 54-59? My goal (hope) of having 1.575 million in todays dollars in retirement funds (excluding FERS) in 16 years...
by Fishing50
Sat Mar 06, 2021 6:12 pm
Forum: Personal Investments
Topic: Is my Financial Advisor's advice sound?
Replies: 69
Views: 6961

Re: Is my Financial Advisor's advice sound?

Running away from USPA IRA was the best financial decision I made.

You will be fine just keeping costs low:
TSP to the match
MAX Roth IRA
TSP to the MAX
Keep equity index funds in taxable
by Fishing50
Thu Mar 04, 2021 8:36 am
Forum: Personal Investments
Topic: Traditional or Roth TSP for young adult?
Replies: 12
Views: 793

Re: Traditional or Roth TSP for young adult?

So that's what prompted the question in my head - in 20-30 years down the road, is he going to regret going with traditional TSP now? Maybe another way to ask the question is "does large taxable account support traditional TSP because there will be money to pay taxes on Roth conversions"?...
by Fishing50
Wed Mar 03, 2021 9:03 am
Forum: Personal Investments
Topic: Traditional or Roth TSP for young adult?
Replies: 12
Views: 793

Re: Traditional or Roth TSP for young adult?

Choosing a mix of Roth TSP & traditional is never wrong for a military member in the 22% tax bracket.
22% looks better than the 2016 tax rates coming in 2026 when current tax rates expire.
22% looks even better if with post retirement employment.
by Fishing50
Sun Feb 21, 2021 10:30 pm
Forum: Personal Investments
Topic: Personal Investment Portfolio Huddle
Replies: 45
Views: 4581

Re: Personal Investment Portfolio Huddle

It's pretty easy to track with tax efficient priorities: 1. All equities in taxable. I recommend a balanced total intl and total US Stock portfolio. To clarify, are you recommending 50 US / 50 International split within my equity allocation. For example, for my 90%equity allocation, having 45% VTIA...
by Fishing50
Sun Feb 21, 2021 1:35 pm
Forum: Personal Investments
Topic: Personal Investment Portfolio Huddle
Replies: 45
Views: 4581

Re: Personal Investment Portfolio Huddle

It's pretty easy to track with tax efficient priorities: 1. All equities in taxable. I recommend a balanced total intl and total US Stock portfolio. 2. 10% bonds in TSP. 3. Rebalance Intl and US Stock in Roth and TSP as required. You will probably be able to rebalance with only Roth IRA and TSP cont...
by Fishing50
Sun Feb 21, 2021 1:21 pm
Forum: Personal Investments
Topic: Separating buckets due to early pension
Replies: 9
Views: 972

Re: Separating buckets due to early pension

We're 20yrs ahead you, approaching a 30yr military pension. The final 10yrs were filled with good duty stations and exciting opportunities, so we stayed. 10yrs from a pension, many things can change for you. You may choose to separate or stay. I recommend a tax efficient approach to taxable investin...
by Fishing50
Sat Feb 20, 2021 10:33 am
Forum: Personal Investments
Topic: Personal Investment Portfolio Huddle
Replies: 45
Views: 4581

Re: Personal Investment Portfolio Huddle

I’ll reiterate my the most important points above:: -You don’t need PAS. I am leaning towards this. I conducted the initial assessment and look forward to seeing their recommended portfolio and hopefully be able to keep the plan itself. My question will be: Will I be able to follow this plan withou...
by Fishing50
Thu Feb 18, 2021 7:48 pm
Forum: Personal Investments
Topic: Personal Investment Portfolio Huddle
Replies: 45
Views: 4581

Re: Personal Investment Portfolio Huddle

I’ll reiterate my the most important points above:: -You don’t need PAS. -Roth TSP is probably the right choice before tax rates revert to 2016 levels in 2026. -For tax efficiency avoid bonds in taxable, keep bonds in TSP. -Total Intl stock index equity fund is tax efficient in taxable. -You probabl...
by Fishing50
Thu Feb 18, 2021 9:07 am
Forum: Personal Investments
Topic: Relatively New Investor... Am I Investing Correctly?
Replies: 12
Views: 947

Re: Relatively New Investor... Am I Investing Correctly?

Emergency funds: I would consider this as my cash reserves at 22% (in the five figures range). In total it's about 10 months of expenses without any reduction in current spending. Taxable: 0% cash (for investing – do not include emergency funds) 66% Vanguard VFIAX 27% NYL Variable Life Insurance Po...
by Fishing50
Mon Feb 08, 2021 9:26 am
Forum: Personal Investments
Topic: Starting at age 39, portfolio review request
Replies: 11
Views: 1452

Re: Starting at age 39, portfolio review request

As others have said, tax efficient placement becomes more important as balances grow. Best to move VWO emerging markets into Roth IRA. Probably not wrong to continue some Roth TSP contributions for the next couple years in the 22% tax bracket. With a pension TSP withdrawals will never be in the lowe...
by Fishing50
Sun Jan 31, 2021 2:26 pm
Forum: Personal Investments
Topic: Review of Portfolio and General Strategy
Replies: 7
Views: 1204

Re: Review of Portfolio and General Strategy

1) I believe Roth is correct for you, at current tax rates and age. During your lifetime income tax rates may increase significantly making early Roth contributions more valuable. Others may disagree, but the assumptions about future growth rates & taxes are unknown. At your age Roth TSP is a re...
by Fishing50
Sun Jan 31, 2021 12:02 pm
Forum: Personal Investments
Topic: Portfolio advice please--How to make portfolio more tax-efficient?
Replies: 6
Views: 796

Re: Portfolio advice please--How to make portfolio more tax-efficient?

After learning about the 3-fund portfolio philosophy, I began exchanging some actively-managed funds and sweeping distributions from all funds toward the basic 3 funds. I’m now at the point where selling the other non-index funds in my taxable account will incur a much larger capital gains tax hit....
by Fishing50
Sat Jan 30, 2021 11:48 am
Forum: Personal Investments
Topic: Review of Portfolio and General Strategy
Replies: 7
Views: 1204

Re: Review of Portfolio and General Strategy

We enjoyed our embassy tour. You have a lot going on, I'd recommend simplifying. Roth TSP is probably the right choice. In 2026 your tax rate will likely increase to 28% or higher, making traditional a better choice. Recommend paying off the student loans tomorrow. I know next to nothing about Bette...
by Fishing50
Wed Jan 13, 2021 11:19 am
Forum: Personal Investments
Topic: Portfolio Review: Recent Changes/New to Self Managing/Sanity Check
Replies: 9
Views: 930

Re: Portfolio Review: Recent Changes/New to Self Managing/Sanity Check

Not much to comment on, you are doing well. I don't think you need a large emergency fund with high saving rate, substantial taxable assets, and darn near guaranteed income of a govt job. You could get that money invested. Big ERN explains better than I: https://earlyretirementnow.com/2016/05/05/eme...
by Fishing50
Thu Dec 31, 2020 3:26 pm
Forum: Personal Investments
Topic: TSP, Roth IRA, Taxable - Looking for Asset Allocation Feedback
Replies: 6
Views: 603

Re: TSP, Roth IRA, Taxable - Looking for Asset Allocation Feedback

I recommend simplifying to VTSAX for tax efficiency in taxable. Roth IRA in VTSAX with some emerging markets and other sector bets is ok because you can sell with no tax implications. I'm looking at the Vanguard mutual funds list and was wondering why VTSAX is so popular with a 7.62% annual rate of...
by Fishing50
Wed Dec 30, 2020 12:40 pm
Forum: Personal Investments
Topic: TSP, Roth IRA, Taxable - Looking for Asset Allocation Feedback
Replies: 6
Views: 603

Re: TSP, Roth IRA, Taxable - Looking for Asset Allocation Feedback

I'm thinking about taking both the IRA and taxable and going to Vanguard, and potentially going 100% into the Total Stock Market Index. I figure that I've got 30 years until retirement and 10 years until buying a house due to my job. However, I realize this may be too risky. I'm also unsure about l...
by Fishing50
Fri Dec 25, 2020 11:09 am
Forum: Personal Investments
Topic: Portfolio Review + Fixing Current Lopsided AA within TSP?
Replies: 1
Views: 236

Re: Portfolio Review + Fixing Current Lopsided AA within TSP?

You are planning great asset location. It’s perfect to hold the entire bond allocation in TSP. Interfund transfer to your desired allocation, it’s simple. Your allocation is appropriate. Your taxable holdings are very tax efficient, don’t change anything there. If you want additions like emerging ma...
by Fishing50
Tue Dec 22, 2020 9:23 am
Forum: Personal Investments
Topic: Towards retirement
Replies: 9
Views: 1302

Re: Sauntering towards retirement

Going forward, I’d like to move to a simpler plan across our taxable accounts, where 90% of our equities are held. Essentially this would mean continuing to hold our small and value tilted holdings (5 funds/ETFs), but not adding to them. Rather, further contributions to equities would be either to ...
by Fishing50
Tue Dec 22, 2020 8:24 am
Forum: Personal Investments
Topic: Mid-Career Portfolio Check-up
Replies: 4
Views: 876

Re: Mid-Career Portfolio Check-up

Tax efficiency is helpful In taxable investing. Broad based equity index funds are an excellent option, and bonds can be in TSP to maintain asset allocation. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement Target date funds are great as a single holding, your portfolio will require some...
by Fishing50
Mon Dec 21, 2020 9:29 am
Forum: Personal Investments
Topic: Portfolio Review - This Looks Boring
Replies: 6
Views: 990

Re: Portfolio Review - This Looks Boring

Taxable fund placement is tax efficient, broad based index equity funds are perfect. Yes, swap bonds for equities in the Roth IRA to take advantage of higher expected returns of equities in tax free account. Bonds in 401k & TSP keeps tax inefficiently and lower expected returns in tax deferred a...
by Fishing50
Thu Dec 17, 2020 7:38 am
Forum: Personal Investments
Topic: When to adjust TSP contributions to take affect in January?
Replies: 16
Views: 1113

Re: When to adjust TSP contributions to take affect in January?

DFAS doesn’t know I’ve already contributed $19500 to my civilian employer 401k in 2020. If I adjust the contribution too early, it will withhold in December and cause an excess contribution that takes time and effort to sort out (I learned this the hard way). Many of you mentioned setting dollar am...
by Fishing50
Wed Dec 16, 2020 9:32 am
Forum: Personal Investments
Topic: When to adjust TSP contributions to take affect in January?
Replies: 16
Views: 1113

Re: When to adjust TSP contributions to take affect in January?

I have good luck making changes that are effective the following month, if I make changes in myPay after the previous months LES posts but before the next month begins. I figure LES will be available 28 Dec, maybe as early as 23 Dec. If you make changes during the last days in Dec the MyPay notifica...