Search found 3224 matches

by sailaway
Sun Jun 13, 2021 9:28 pm
Forum: Personal Investments
Topic: Decrease/stop 403b contribution for self and contribute to children's Roth IRAs
Replies: 5
Views: 294

Re: Decrease/stop 403b contribution for self and contribute to children's Roth IRAs

You say "if all goes as planned" in relation to the pension. Is that just normal pension qualms or are you not yet vested?

Also, you don't mention if your children actually have earned income.
by sailaway
Sun Jun 13, 2021 8:28 pm
Forum: Personal Investments
Topic: How to Protect Savings from stock market crash
Replies: 17
Views: 1479

Re: How to Protect Savings from stock market crash

What harm would it be for OP to liquidate and park his money in say a MMF temporarily to preserve value following a (likely) impending crash. Following the crash, they can then reinvest those funds back as he/she chooses when they feel it has dipped enough. Any thoughts?? (i know, can't predict whe...
by sailaway
Sun Jun 13, 2021 12:11 pm
Forum: Investing - Theory, News & General
Topic: Optimal Investment Withdrawl Rate for very early retirement (<50 years old)
Replies: 10
Views: 854

Re: Optimal Investment Withdrawl Rate for very early retirement (<50 years old)

I'm interested in your thoughts on the optimum investment withdrawal rate for a very early retirement in your 40's. I guess the most conservative path is simply to never sell capital gains and live off the dividends/interest in your portfolio, adjusting your spending as necessary up or down. That w...
by sailaway
Sun Jun 13, 2021 11:28 am
Forum: Personal Investments
Topic: Trying to establish my asset allocation
Replies: 10
Views: 566

Re: Trying to establish my asset allocation

We choose asset allocation based on distance to FI. That is, we were quite aggressive (95/5) until we approached our minimal FI number. At that point, we switched to 70/30, where we will likely stay. We are quite comfortable here for the long term. Asset allocation is a function of your assets, your...
by sailaway
Sat Jun 12, 2021 6:22 pm
Forum: Personal Investments
Topic: Post-tax 401k contributions?
Replies: 13
Views: 631

Re: Post-tax 401k contributions?

You should also check if the employer contiuines the generous 100% match even for after tax contributions (my previous employer did), in which case your wife would only need to contribute $9.5k to max out the $58k. In either case the mega backdoor Roth if allowed in her plan is the way to go. This ...
by sailaway
Sat Jun 12, 2021 10:49 am
Forum: Personal Investments
Topic: Post-tax 401k contributions?
Replies: 13
Views: 631

Re: Post-tax 401k contributions?

If the 401k plan allows for automatic and immediate rollover to Roth, that would avoid any gains and be the ideal situation. I will say that although we roll into a Roth IRA, we have only had significant gains once. This is mostly due to the luck of timing when we maxed out and when I was able to ge...
by sailaway
Thu Jun 10, 2021 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate agent reluctant to show offers to the seller prior to decision
Replies: 91
Views: 8002

Re: Real estate agent reluctant to show offers to the seller prior to decision

mhalley wrote: Thu Jun 10, 2021 4:40 pm I am no expert, but isn’t it the realtors job to examine all the offers and present the best one to you? Why are you trying to micromanage them? I’ve never actually sold a home,only bought so I am ignorant in this area.
In many jurisdictions the agent is required to take all offers to the seller.
by sailaway
Thu Jun 10, 2021 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Eviction Process?
Replies: 17
Views: 1207

Re: Eviction Process?

anon_investor wrote: Thu Jun 10, 2021 3:31 pm
RickBoglehead wrote: Thu Jun 10, 2021 3:30 pm This is why we don't own any rental properties...
+1!!!
That and a fight over whether or not to let the property manager in to fix things.
by sailaway
Thu Jun 10, 2021 2:48 pm
Forum: Investing - Theory, News & General
Topic: Investing Bonus Into 401k - Beyond Limit?
Replies: 7
Views: 537

Re: Investing Bonus Into 401k - Beyond Limit?

Many employers do not allow bonus' to got o 401k at all. Megacorp is pretty generous and they limit it to 50%. If you can make a contribution, you cannot exceed the $19,500 in Roth + traditional for the year. Often, payroll software will prevent this from happening, but if it does not, measures will...
by sailaway
Thu Jun 10, 2021 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: A young friend made a tax mistake - can it be undone?
Replies: 18
Views: 2682

Re: A young friend made a tax mistake - can it be undone?

There is no tax hit for receiving a gift. The giver should file the appropriate paperwork with the IRS, but even that may not be necessary if the giver is married.
by sailaway
Thu Jun 10, 2021 1:05 pm
Forum: Personal Investments
Topic: Any reason to contribute to HSA?
Replies: 12
Views: 1652

Re: Any reason to contribute to HSA?

It depends on the actual numbers. Since your child tax credits are refundable, you may get more money back by making contributions that lower your liability even more.
by sailaway
Thu Jun 10, 2021 12:15 pm
Forum: Personal Investments
Topic: Reinvesting RMDs - inherited IRA as I am 55
Replies: 6
Views: 390

Re: Reinvesting RMDs - inherited IRA as I am 55

I just turned 55 and was told, under the new tax laws, I have to take RMDs for the next 10 years until the account is emptied I believe this is only somewhat correct. You have to empty it in 10 years but don’t have to take annual rmd’s. You’ll need to assess other income to decide what strategy mak...
by sailaway
Thu Jun 10, 2021 11:21 am
Forum: Investing - Theory, News & General
Topic: Rule of 55 and 401k rollovers
Replies: 16
Views: 1674

Re: Rule of 55 and 401k rollovers

Are there more plans that allow you roll in prior 401ks than those that allow IRAs? I would have thought most that allow roll ins allow both?
by sailaway
Thu Jun 10, 2021 10:59 am
Forum: Personal Finance (Not Investing)
Topic: which state to retire
Replies: 174
Views: 14821

Re: which state to retire

I'm surprised Colorado is suggested as a place to retire to. While Denver is one of my favorite places to visit during spring / summer, they seem to hit a subfreezing temperature 5~6 months out of a year. Much colder than PNW, and even PNW is cold for me. Denver is also high altitude. It can make a...
by sailaway
Wed Jun 09, 2021 4:36 pm
Forum: Personal Investments
Topic: Drawdown for dummies 101
Replies: 16
Views: 2195

Re: Drawdown for dummies 101

mdbravelion wrote: Wed Jun 09, 2021 12:17 pm Hi,

What does a drawdown actually look like in practice. Let's assume a simple 2 fund portfolio, and a retirement age of say 65. Let's not discuss tax efficiency or SSI/pension or healthcare.
So, not at all what it would actually look like in practice then.
by sailaway
Wed Jun 09, 2021 2:18 pm
Forum: Personal Investments
Topic: What to do about interest rates
Replies: 37
Views: 3611

Re: What to do about interest rates

I think of cash and bonds as ballast, rather than "fixed income". They aren't there to earn X; they are there to keep a dip from dipping quite so low.
by sailaway
Wed Jun 09, 2021 10:08 am
Forum: Personal Investments
Topic: Can I retire?
Replies: 25
Views: 3743

Re: Can I retire?

You have plenty, including buffers, if your spending target is accurate. Does that include taxes, healthcare and one offs such as major house repairs or replacing a car?
by sailaway
Tue Jun 08, 2021 2:31 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?
Replies: 13
Views: 644

Re: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?

So it sounds like if you only ever make backdoor and megabackdoor conversions, you can take it all out whenever you want? As long as there wasn't any growth prior to the conversion. Even if there was growth, the 10% penalty may still be worth it, since it is only on the growth. I note in my spreads...
by sailaway
Tue Jun 08, 2021 2:07 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?
Replies: 13
Views: 644

Re: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?

As stated above, the MBR is a conversion, it gets the same treatment as any other conversion, including "waiting in line." That is, you take out any and all direct contributions first. Then you take out the tax free portion of your oldest conversion (ie, backdoor or MBR contributions, not...
by sailaway
Tue Jun 08, 2021 12:07 pm
Forum: Personal Investments
Topic: Understanding whether Roth conversion is worthwhile and phasing
Replies: 11
Views: 1008

Re: Understanding whether Roth conversion is worthwhile and phasing

If you engage in charitable giving, you may want to leave money in the traditional IRA for QCDs. High medical expenses can be another way to reduce the tax burden, but harder to make part of a plan.
by sailaway
Tue Jun 08, 2021 11:39 am
Forum: Personal Investments
Topic: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?
Replies: 13
Views: 644

Re: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?

As stated above, the MBR is a conversion, it gets the same treatment as any other conversion, including "waiting in line." That is, you take out any and all direct contributions first. Then you take out the tax free portion of your oldest conversion (ie, backdoor or MBR contributions, not ...
by sailaway
Tue Jun 08, 2021 11:26 am
Forum: Personal Consumer Issues
Topic: Dance Lessons
Replies: 17
Views: 1370

Re: Dance Lessons

Bump Trying to see if anyone else has feedback, ready to get this started! Did you ever identify a style you are interested in? If not, look for a studio or group that teaches a variety of styles as a series. I originally found a meet up group whose main purpose was to get people together to go to ...
by sailaway
Mon Jun 07, 2021 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Return to Work - How is your company dealing with it?
Replies: 260
Views: 23527

Re: Return to Work - How is your company dealing with it?

Megacorp has made a few hires in the last year. The contractors on our team have been told they are remote for the duration of their contract, and therefore welcome to work from where ever. The full employees have been asked to relocate. It may be that the companies the contractors actually work for...
by sailaway
Mon Jun 07, 2021 2:41 pm
Forum: Personal Consumer Issues
Topic: Did you make any lifestyle changes after hitting 500k NW?
Replies: 61
Views: 4958

Re: Did you make any lifestyle changes after hitting 500k NW?

I just looked - the first time we ever added it all up, we were already over $500k. At the time, our goals were focused entirely on building our taxable (after maxing out retirement, just because that was what we had each always done). We wanted 10x in taxable to take a long sabbatical. For better o...
by sailaway
Mon Jun 07, 2021 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40 and need advice
Replies: 13
Views: 2269

Re: Approaching 40 and need advice

At first glance, it looks like your first priority should be to max out her 401k contributions. Other than that, it depends on goals, which you don't even mention. Early retirement? Beach house? You do mention having your money work for you, but don't mention AA or what investments you currently hol...
by sailaway
Mon Jun 07, 2021 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Any tips which might help in transitioning from the accumulation to the retirement phase
Replies: 19
Views: 1815

Re: Any tips which might help in transitioning from the accumulation to the retirement phase

For us, part of the transition has involved not always having paychecks to spend. Megacorp has a matching program that doesn't punish us for front loading and allows MBR. Then there is ESPP and HSA. Plus additional tax withholdings because RSUs and bonus are under withheld... Much of the year, paych...
by sailaway
Sat Jun 05, 2021 10:30 pm
Forum: Personal Investments
Topic: Retire early
Replies: 30
Views: 4807

Re: Retire early

Look into the Roth conversion ladder to avoid early withdrawal penalties. You can live off your existing taxable funds and Roth contributions for a few years while making tIRA --> Roth conversions and letting them "season" until they are penalty free. You are cutting it tight if you want t...
by sailaway
Sat Jun 05, 2021 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax
Replies: 53
Views: 3076

Re: Gift tax

What is the big deal? OP should have his son open a UTMA bank account for the grandchild. OP and wife can gift the grand child money via check deposited in the grandchild's bank account. The son can use those funds to pay for stuff to benefit the grandchild. The son's funds that would have been use...
by sailaway
Sat Jun 05, 2021 12:06 pm
Forum: Personal Investments
Topic: Seeking some life as well as portfolio advice -- Ensuring Financial Independence
Replies: 23
Views: 1481

Re: Seeking some life as well as portfolio advice -- Ensuring Financial Independence

Please provide a hint as to the size of your current total portfolio: High 7-figures Imho, this is a huge range. 1M and 9.9M are vastly different. HIGH 7 figures is not 1M. More like 8.5-9.5M. Yes, but sometimes folks when referring to money say high 6 figures to mean 190k, not 900k, or high 7 figu...
by sailaway
Sat Jun 05, 2021 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Can we talk about what I think is a blind spot in our retirement planning?
Replies: 149
Views: 12961

Re: Can we talk about what I think is a blind spot in our retirement planning?

Unless you are very wealthy, a divorce almost certainly will mean a diminished financial lifestyle. I had read sometime ago that divorce was the leading cause of poverty. (I don’t have source so I might have read it wrong) but it is almost certain, it does not build wealth. This is a good overview ...
by sailaway
Sat Jun 05, 2021 10:00 am
Forum: Investing - Theory, News & General
Topic: How did Bogleheads do investment wise during the pandemic?
Replies: 110
Views: 6134

Re: How did Bogleheads do investment wise during the pandemic?

I was out west skiing with a financial advisor (casual friend) just before the lockdown. He was on the phone on the chair lift talking to panicking clients who were worried. I remember one guy told him to sell half his portfolio (about a million dollars) and my friend couldn't talk him out of it. D...
by sailaway
Sat Jun 05, 2021 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Moving TOD accounts to Revocable Trust
Replies: 6
Views: 419

Re: Moving TOD accounts to Revocable Trust

This is something to be discussed with your estate planner, as it needs to fit in with the rest of the plan. For example, if you have provisions in place for a successor trustee in case you are incapacitated, it would definitely be better to have these accounts in the trust. A good estate planner wi...
by sailaway
Fri Jun 04, 2021 11:45 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax
Replies: 53
Views: 3076

Re: Gift tax

My wife and I gave combined 60k to son and his wife. Due to unexpected expenses, we have decided to give additional 30k which we can afford. Is there a way to avoid gift tax return? Can we gift the 30k to their 2 year old infant and then use it as they wish or is this dodging the spirit of the law?...
by sailaway
Fri Jun 04, 2021 6:39 pm
Forum: Investing - Theory, News & General
Topic: Inconsistencies with the Boglehead principles?
Replies: 68
Views: 4937

Re: Inconsistencies with the Boglehead principles?

I would say the average boglehead would disagree with every single one of your buts. Can you find people who hold those views? Yes. Are they popular? Less so.
by sailaway
Fri Jun 04, 2021 4:59 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 15580
Views: 1216176

Re: U.S. stocks continue to soar!

000 wrote: Fri Jun 04, 2021 4:58 pm
Forester wrote: Wed Jun 02, 2021 11:55 pm 2000/2008 will be here soon in only a matter of months. "Buy the dip" won't work this time.
How deep and long do you think the next bear will be so that "buy the dip" won't work?
Buying the dip worked out pretty well in those previous examples.
by sailaway
Fri Jun 04, 2021 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal strategy
Replies: 12
Views: 1829

Re: Withdrawal strategy

A lot of this depends on your overall goals, including:

-how much charitable giving you want to do

-how much do you want to leave to heirs

-how much of this you want to spend

Your best strategy will balance your own goals with the tax implications over the long term.
by sailaway
Fri Jun 04, 2021 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement - 72t vs. Roth vs. Taxable
Replies: 7
Views: 549

Re: Early retirement - 72t vs. Roth vs. Taxable

I would start Roth conversions, especially if the taxable + existing Roth could be stretched to cover until the first conversion was available penalty free. For other readers, I would have been considering Roth conversions from the first year of lower income, in order to have more control over tax b...
by sailaway
Thu Jun 03, 2021 6:14 pm
Forum: Personal Consumer Issues
Topic: What exactly is the selling point of "pre-paid" cellular/mobile plans?
Replies: 117
Views: 8858

Re: What exactly is the selling point of "pre-paid" cellular/mobile plans?

I pre pay a year at a time to get what averages out to $15/mo.
by sailaway
Thu Jun 03, 2021 2:33 pm
Forum: Personal Investments
Topic: General limit on total employer and employee contributions
Replies: 2
Views: 272

Re: General limit on total employer and employee contributions

HSA is not a retirement account and the limits are completely separate. Similarly, and IRA is not a workplace retirement account, and the limits are separate.
by sailaway
Wed Jun 02, 2021 2:12 pm
Forum: Personal Consumer Issues
Topic: Potential Relocation to Austin - Should We Do It?
Replies: 123
Views: 8607

Re: Potential Relocation to Austin - Should We Do It?

We're considering a relocation also, and one of the things that you need to think about is whether you will be comfortable in the new area. People in different areas of the country have different perspectives on things, and some may not necessarily match up with yours. We spent a great deal of time...
by sailaway
Wed Jun 02, 2021 10:23 am
Forum: Personal Investments
Topic: Loser at 55???
Replies: 41
Views: 8224

Re: Loser at 55???

You either spend housing + car + $1000 or you need $7000+ to live on. Which is it?

You need to know where your money is going to decide how much you need for a comfortable retirement.
by sailaway
Wed Jun 02, 2021 10:13 am
Forum: Investing - Theory, News & General
Topic: Withdrawal rate for an early retirement
Replies: 442
Views: 28289

Re: Withdrawal rate for an early retirement

I wouldn't use 4% SWR in retirement, especially for an early retirement. Financial Samurai recommends 0.5% WR as our bond yields are really low. That recommendation was so poorly written that it was retracted. I'm not aware it was. I see it was *updated* on 4/26/21: https://www.financialsamurai.com...
by sailaway
Tue Jun 01, 2021 11:56 pm
Forum: Investing - Theory, News & General
Topic: Withdrawal rate for an early retirement
Replies: 442
Views: 28289

Re: Withdrawal rate for an early retirement

Marseille07 wrote: Tue Jun 01, 2021 11:52 pm I wouldn't use 4% SWR in retirement, especially for an early retirement. Financial Samurai recommends 0.5% WR as our bond yields are really low.
That recommendation was so poorly written that it was retracted.
by sailaway
Tue Jun 01, 2021 6:18 pm
Forum: Personal Investments
Topic: Help me decide what to do with my savings and plan for retirement
Replies: 6
Views: 904

Re: Help me decide what to do with my savings and plan for retirement

In your case, probably one of the best things you could do for your child's college expenses is to make sure you understand what funding might be available if you can minimize your income by maxing out your 403b and your and your spouse's traditional IRAs. As to whether or not VTSAX is a good choice...
by sailaway
Tue Jun 01, 2021 6:05 pm
Forum: Personal Investments
Topic: Retirement Planning
Replies: 17
Views: 1862

Re: Retirement Planning

We alternate between VTSAX and the Fidelity equivalent, if that helps calm anybody your concerns. The thing about stopping buying "because the market is so high" is that you don't know how today's high compares to the future. We have folks come here that have been sitting our since before...
by sailaway
Tue Jun 01, 2021 2:41 pm
Forum: Personal Investments
Topic: Retirement Planning
Replies: 17
Views: 1862

Re: Retirement Planning

We alternate between VTSAX and the Fidelity equivalent, if that helps calm any of your concerns. The thing about stopping buying "because the market is so high" is that you don't know how today's high compares to the future. We have folks come here that have been sitting out since before t...
by sailaway
Tue Jun 01, 2021 12:33 pm
Forum: Personal Investments
Topic: Early Retirement and Investing Horizons
Replies: 35
Views: 2507

Re: Early Retirement and Investing Horizons

Maybe I am missing something or just can't see the forest for the trees, but I think you are making this way more complicated than it needs to be. As I suggested, first decide on your allocation. That includes what percentage of international vs US equities. Then contribute and rebalance to reach y...
by sailaway
Tue Jun 01, 2021 9:00 am
Forum: Personal Investments
Topic: Early Retirement and Investing Horizons
Replies: 35
Views: 2507

Re: Early Retirement and Investing Horizons

With the mega backdoor Roth and the backdoor Roth, you have plenty of contributions that you will be able to access in addition to your taxable account that you are now in a place to grow. If you retire at 52, those two pools only need to cover 8 years. I could see where you might get nervous if you...
by sailaway
Sun May 30, 2021 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Return to Work - How is your company dealing with it?
Replies: 260
Views: 23527

Re: Return to Work - How is your company dealing with it?

How are these office spaces being spiffed up for the Great Return? Are telemeeting spaces being added? How will use of sound cancelling headphones + bluetooth change the open office? Are there other changes that WFH made to office routine? And, unoccupied spaces get grungy. Unused tools fail. Light...