Search found 12810 matches

by retired@50
Thu Mar 28, 2024 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a Boglehead consensus on how much car insurance to buy?
Replies: 6
Views: 192

Re: Is there a Boglehead consensus on how much car insurance to buy?

Presumably this topic has been discussed on this forum in the past, but I did a brief search and didn't find anything, so wondering--is there a general consensus as to "how much coverage is enough" when it comes to auto insurance? I have 500K/500K Bodily injury/property & uninsured motorist 500K/500K. Comp & collision deductible is $500 (probably going to raise that to $1,000 if I would receive a reasonable savings to do so). Currently with State Farm & paying $1,582 for 6 months on a 2018 Honda w/ nearly 100K miles. Statistically speaking I'm guessing that driving is likely the most dangerous activity the average American engages in in a day-to-day basis, but I'm also thinking that $500,000 coverage limits = over ins...
by retired@50
Thu Mar 28, 2024 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions on Vanguard check writing services
Replies: 3
Views: 174

Re: Opinions on Vanguard check writing services

playboy_number9 wrote: Thu Mar 28, 2024 12:20 pm Anyone have experience with Vanguard check writing services connected to their money market account?

I signed up for check writing services and ordered a checkbook. Wondering if its worth it or if i should just transfer cash to my bank account.
Based on what I've read in the forum about checks and Vanguard... They don't mix well.

Many posters who try to use Vanguard as a bank wind up disappointed. I'd stick with your normal bank checking/savings accounts and just link them to Vanguard so you can move money conveniently.

Regards,
by retired@50
Thu Mar 28, 2024 1:24 pm
Forum: Personal Investments
Topic: Should I invest in retirement accounts or in taxable?
Replies: 4
Views: 327

Re: Should I invest in retirement accounts or in taxable?

Are the income numbers of $30,000 and $40,000 actual, or are they just for this exercise?

I doubt someone who earns $30,000 per year could survive comfortably after putting $23,000 into a 401k plan.

Regards,
by retired@50
Thu Mar 28, 2024 11:45 am
Forum: Personal Investments
Topic: how much of the total US stock market is in Value? in Small Stocks?
Replies: 3
Views: 221

Re: how much of the total US stock market is in Value? in Small Stocks?

I was playing with Big ERN's SWR spreadsheet https://earlyretirementnow.com/2018/08/29/google-sheet-updates-swr-series-part-28/ and out of curiosity wanted to plug in some non-zero values for Small Stock and Value Stock My stock is 70% total US and 30% total ex-US. I didn't find a good number for the % of VTI that is Value stock (just that VTI is a "blend") and it looks like it's maybe 7% small stock? This is more of an intellectual curiosity exercise, Karsten himself warns in the post that you may not want to rely on the improvements that Factors introduce in his results. See images below from Vanguard Portfolio Watch, with the VTSAX fund isolated. https://i.postimg.cc/GtdYGpC8/Screenshot-2024-03-28-at-9-42-16-AM.png https://i.p...
by retired@50
Thu Mar 28, 2024 11:19 am
Forum: Personal Investments
Topic: Fidelity vs Northwestern Mutual
Replies: 6
Views: 425

Re: Fidelity vs Northwestern Mutual

Chocorua58 wrote: Thu Mar 28, 2024 9:07 am ... 1.5M with Fidelity Wealth Management
... 1.5 M with Northwestern Mutual
...
Fidelity is .76 and Northwestern is 1.0.
Given the numbers above, it would appear you're paying approximately $11,400 annually to Fidelity and $15,000 annually to Northwestern Mutual.

That's $26,400 annually. Considering alternatives like Vanguard PAS seems wise.

According to the Vanguard website (linked below) you'd pay around $9,000 annually at Vanguard. In other words, you could save about 2/3 of your current investment advisory costs.
Source: https://investor.vanguard.com/advice/pe ... al-advisor

Regards,
by retired@50
Thu Mar 28, 2024 11:00 am
Forum: Personal Investments
Topic: Ability to do Backdoor Roth vs $15k more in Trad IRA?
Replies: 3
Views: 167

Re: Ability to do Backdoor Roth vs $15k more in Trad IRA?

kirent wrote: Thu Mar 28, 2024 10:56 am
However, if I have a Traditional IRA, as I understand it, that would preclude me from doing anymore backdoor roths. Is that correct?
It wouldn't preclude it, but it would add the pro-rata calculation into the mix.

More details in the wiki: https://www.bogleheads.org/wiki/Backdoor_Roth

See the "Cautions" section in the wiki page above.

Regards,
by retired@50
Thu Mar 28, 2024 10:52 am
Forum: Personal Investments
Topic: Newbie needs help: plan and portfolio
Replies: 3
Views: 257

Re: Newbie needs help: plan and portfolio

(4) For the US stock, BRKB seems to be better than VOO coz it has no dividend (tax efficient). Inside a Roth IRA the tax efficiency argument is irrelevant. This would only matter if you were holding BRK.B in your taxable account. Tax Filing Status: Married Filing Separately #may switch to Jointly later. DINK family. wife is independent and does her own investment with schwab intelligent portfolio Possible red flag here. Are you making normal contributions to the Roth IRA? Maybe review this article from Fidelity linked below. Source: https://www.fidelity.com/learning-center/smart-money/roth-ira-contribution-limits MFS taxpayers have additional restrictions on IRA contributions. Tax Rate: 22% Federal, 7.65% FICA, 10.23% State #2024, marginal...
by retired@50
Thu Mar 28, 2024 10:17 am
Forum: Personal Investments
Topic: Those complimentary dinners for retirees by investment advisors
Replies: 143
Views: 10528

Re: Those complimentary dinners for retirees by investment advisors

OOH OOH OHH!! I just got my most recent invitation for a complimentary dinner in the mail today. A meal at Fleming's Steakhouse (a pretty upscale place for a Boglehead). The title of the presentation is "Essential Strategies for Retirement Planning in Today's Volatile Economy". It's being presented by a seasoned "financial planning specialist" who worked for 10 years for New York Life before he struck out on his own. And even better - he played for one of the local BIG COLLEGE FOOTBALL teams, in the Southeastern Conference. Instant credibility in the football-crazed South! One of the things he'll discuss is "how to design your portfolio to protect yourself against future drops in the market without sacrificing sign...
by retired@50
Thu Mar 28, 2024 10:05 am
Forum: Personal Investments
Topic: 401k Fee Rebalancing Question
Replies: 3
Views: 149

Re: 401k Fee Rebalancing Question

Stch wrote: Thu Mar 28, 2024 8:35 am
So my questions are, is this worth it?
Yes.

To me, it's less about the small fee savings (which is nice) and more about your belief in using index funds.
Why subject yourself to an active manager if you don't want one.

Regards,
by retired@50
Thu Mar 28, 2024 9:56 am
Forum: Personal Investments
Topic: Balancing my taxable, regular IRA and Roth IRA
Replies: 3
Views: 293

Re: Balancing my taxable, regular IRA and Roth IRA

About me: Officially retired and just started taking SS, however I still work occasionally (probably $15,00 year,maybe for another year). Accounts: 1) Taxable, not a lot of money: 49% Domestic stock funds (variety mix of funds, heavy on large cap) 16% Foreign stock funds 26% Bond fund (BND) 6% CD's 2) Traditional IRA 60% Domestic stock funds (variety mix of funds, some sectors funds) 9% Foreign stock funds 22% Bond fund (FBND) 9% cash and CD 3) Roth IRA (just transferred to Fidelity from my work 401) 41% Domestic stock fund (FXAIX only) 58% still in cash wondering what to do with it? What should I do with Roth IRA cash? In general, what changes do you suggest for the other 2 accounts. I think I am still eligible to contribute to my traditi...
by retired@50
Thu Mar 28, 2024 9:42 am
Forum: Personal Investments
Topic: Fidelity vs Northwestern Mutual
Replies: 6
Views: 425

Re: Fidelity vs Northwestern Mutual

We are not the most savy investors and we are looking for some advise regarding Northwestern and Fidelity. I recently retired and have 1.5M with Fidelity Wealth Management in their Strategic Advisors funds. We also have 1.5 M with Northwestern Mutual in and assortment of funds 70% Mutual funds and 30% bonds. We have been with Northwestern 20 years with good but not great returns. Fidelity would like us to transfer these funds to their Strategic Management advisors. Should we do same or keep separate going forward? Any comments would be appreciated. Welcome to the forum. Now that you've found us, what do you think about the idea of self-managing your own portfolio? If self management is of interest to you, consider spending some time readin...
by retired@50
Thu Mar 28, 2024 9:36 am
Forum: Personal Investments
Topic: [Wait for new Dept. of Labor Financial Advisor Protections?]
Replies: 13
Views: 871

Re: [Wait for new Dept. of Labor Financial Advisor Protections?]

White Coat Investor wrote: Thu Mar 28, 2024 9:31 am ... Just find a good advisor.
I suspect this is easier said than done.

Maybe this wiki page on investment advisers can help: https://www.bogleheads.org/wiki/Investment_adviser

Or this article about what questions to ask a potential adviser: https://jasonzweig.com/the-19-questions ... l-adviser/

Regards,
by retired@50
Wed Mar 27, 2024 8:28 pm
Forum: Personal Investments
Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Replies: 17
Views: 1432

Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund

BettyBon wrote: Wed Mar 27, 2024 8:25 pm :happy Thank you
You're welcome.

If you'd like to read a somewhat humorous look at the financial industry read the book by Fred Schwed called "Where Are The Customer's Yachts"?
Link: https://www.goodreads.com/book/show/288 ... Zrk&rank=2

Check your local public library for a copy.

Regards,
by retired@50
Wed Mar 27, 2024 8:15 pm
Forum: Personal Investments
Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Replies: 17
Views: 1432

Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund

No response from financial advisor yet but a member of his team emailed to show me that if I had my money still in the Target Fund last year I would've made $3,000 less vs what the returns the financial advisor got, net fees, so now I'm not sure if I should still cancel the advisor and put everything back into Target Fund? This ^^^ is short term thinking. Will they guarantee you a $3,000 premium to the target date fund each year until you die? Of course not. You could live another 40 years. Indexing wins over active management over the long term. I expect your adviser will be long retired in 40 years, enjoying part of your portfolio he took in fees while he smokes cigars on the back of a boat (his clients purchased for him) in the Greek is...
by retired@50
Wed Mar 27, 2024 6:24 pm
Forum: Personal Investments
Topic: How would you change my 401k?
Replies: 46
Views: 1685

Re: Starting to regret hiring Facet

Here is how Facet suggested I change my allocations: 33% VIIIX Vanguard Institutional Index Instl PI (0.02%) 19% VTMNX Vanguard Developed Markets Index Instl (0.05%) 13% VBTIX Vanguard Total Bond Market Index I (0.035%) 13% RWMHX American Funds Washington Mutual R5E (0.420%) 5% PTTAX PIMCO Total Return A (0.83%) 4% VFTNX Vanguard FTSE Social Index I (0.12%) 4% VSCIX Vanguard Small Cap Index I (0.04%) 2% VEMIX Vanguard Emerging Mkts Stock Idx Instl (0.10%) 2% VASVX Vanguard Selected Value Inv (0.38%) 1% POAGX Primecap Odyssey Aggressive Growth (0.660%) 1% WAAEX Wasatch Small Cap Growth Investor (1.150%) 1% RYSEX Royce Small Cap Special Equity Invmt (1.210%) 1% RNWGX American Funds New World R6 (0.570%) 1% VGSNX Vanguard Real Estate Index In...
by retired@50
Wed Mar 27, 2024 5:52 pm
Forum: Personal Investments
Topic: 529 Asset Allocation - how much to value tdfs?
Replies: 1
Views: 223

Re: 529 Asset Allocation - how much to value tdfs?

VanityPlate wrote: Wed Mar 27, 2024 2:41 pm
So, my question is, how do you handle asset allocation in a 529
I'd use the low expense ratio funds, and then I'd just copy what Vanguard does in their 529 allocation by year...

See link: https://investor.vanguard.com/accounts- ... portfolios

If you expand each of the different time periods in the link, you'll start to see the differences in the allocations over time. Just copy it down to create your own glide path.

Regards,
by retired@50
Wed Mar 27, 2024 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Which bank for checking account
Replies: 14
Views: 1058

Re: Which bank for checking account

SmileyFace wrote: Wed Mar 27, 2024 9:33 am Neither - I would look at local Credit Unions ...
Same here. I've been using a credit union for quite a while.

Regards,
by retired@50
Wed Mar 27, 2024 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: How to use Capital Loss Carryover- any updates?
Replies: 11
Views: 734

Re: How to use Capital Loss Carryover- any updates?

Merry wrote: Wed Mar 27, 2024 4:46 pm ... I can't think of any other ways to reduce the carryover faster. Ideas?
I wouldn't think about it at all.

Consider it a lifetime $3,000 deduction and leave it at that.

Regards,
by retired@50
Wed Mar 27, 2024 5:30 pm
Forum: Investing - Theory, News & General
Topic: AVUV vs SCHG
Replies: 22
Views: 1229

Re: AVUV vs SCHG

adave wrote: Wed Mar 27, 2024 4:57 pm Which one is on sale?
Both are certainly available for purchase, but AVUV would appear to be the better bargain at the moment.

Regards,
by retired@50
Wed Mar 27, 2024 5:10 pm
Forum: Forum Issues and Administration
Topic: Personal Investments vs. Investing categories
Replies: 5
Views: 252

Re: Personal Investments vs. Investing categories

bogswenbern wrote: Wed Mar 27, 2024 5:01 pm ... No idea why.
Because data from Robert Schiller and Ken French isn't something you can invest in.

Regards,
by retired@50
Wed Mar 27, 2024 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 72
Views: 3795

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

canbonbon wrote: Wed Mar 27, 2024 3:24 pm I get the whole commission aspect. And I am also willing to drop these guys and not waste my time with them. But can you offer me a better alternative? Because in their scenario, my heir gets over 4 or 5MM on a 2MM investment and all of that tax free. Of which only 50% was given to the Insurance company. I have not been able to find the flaw in that logic. I am sure its there in it, but I am not able to find it yet.
Send a PM to user Stinky. If there's a flaw to be found, he'll find it.

Regards,
by retired@50
Wed Mar 27, 2024 1:17 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4355

Re: Never selling shares

adave wrote: Tue Mar 26, 2024 5:20 pm ... is max consumption in retirement the goal?
It's not my goal. Never has been. I don't really like shopping for new stuff.

Regards,
by retired@50
Wed Mar 27, 2024 1:13 pm
Forum: Personal Investments
Topic: How do YOU integrate cognitive decline with investment policy?
Replies: 33
Views: 2290

Re: How do YOU integrate cognitive decline with investment policy?

eschen42 wrote: Wed Mar 27, 2024 12:54 pm ...
"Power of attorney"-ish (or "Trustee") - find someone to who you trust to take over (legally) when the task becomes "too much" (too hard or too unpleasant)
...
I look forward to hearing your thoughts and strategies.
This ^^^.

I've already started the grooming of the younger generation.

Alternatively, settle on a one-fund portfolio, like a balanced index fund or a retirement income fund.

Regards,
by retired@50
Wed Mar 27, 2024 12:47 pm
Forum: Personal Investments
Topic: 403b: changing allocation — looking for advice: Sell small cap as I make change?
Replies: 1
Views: 152

Re: 403b: changing allocation — looking for advice: Sell small cap as I make change?

I'd let the small cap fund ride. In other words, hold on to it.

Regards,
by retired@50
Wed Mar 27, 2024 11:02 am
Forum: Personal Investments
Topic: Fidelity 401k what to invest in?
Replies: 18
Views: 1339

Re: Fidelity 401k what to invest in?

Penguin97 wrote: Wed Mar 27, 2024 10:58 am
As far as the Roth IRA goes I was planning on splitting the money between these funds:

fzrox, fskax, fzlix, fxaix, and fxnax

And in my brokerage account:

Fzrox, fskax, fzlix, fxaix

Is this an acceptable solution? I know the book mentions a three stock portfolio.

I really appreciate all the advice. Apologies for the novel!
I'd suggest you keep it simple.

Just use the green funds above. If you want more bonds, add them to the 401k so that the Roth and taxable accounts can be ALL stock.

More details on this line of thinking here: https://www.bogleheads.org/wiki/Tax-eff ... _placement

Regards,
by retired@50
Wed Mar 27, 2024 10:57 am
Forum: Personal Investments
Topic: 403B Asset allocation switch up
Replies: 2
Views: 147

Re: 403B Asset allocation switch up

RAW20 wrote: Wed Mar 27, 2024 10:47 am ... I would like my asset allocation to be closer to 90/10 as I am 33 years old. My thoughts on the reallocation are 67.5% VFIAX 10% VBTLX 27.5% 22.5% VTIAX. Thoughts on this?
If you change the VBTLX number from 27.5 to 10 you'll be all set.

Otherwise, your numbers add to 117.5% :shock:

Regards,
by retired@50
Wed Mar 27, 2024 10:50 am
Forum: Personal Investments
Topic: Muni break-even tax rate
Replies: 14
Views: 1538

Re: Muni break-even tax rate

Besides break-even tax rate, munis keep your MAGI down. This is important if you're on Medicare as its rates have MAGI break points for higher premiums. See link. https://www.bogleheads.org/wiki/Modified_Adjusted_Gross_Income From the wiki page linked above. This MAGI is defined in 42 U.S.C. 1395r(i)(4), from the Social Security Act §1839: (4) Modified adjusted gross income.- (A) In general.—For purposes of this subsection, the term “modified adjusted gross income” means adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986)— (i) determined without regard to sections 135, 911, 931, and 933 of such Code; and (ii) increased by the amount of interest received or accrued during the taxable year which is exempt fr...
by retired@50
Wed Mar 27, 2024 10:45 am
Forum: Personal Finance (Not Investing)
Topic: 401k Roth vs. Pre-Tax...again
Replies: 6
Views: 387

Re: 401k Roth vs. Pre-Tax...again

... And finally, and what I find a bit confusing is that usually discussions of roth/pre-tax never mention capital gains rates, but rather just compare across income tax brackets. In a roth scenario, aren't you paying income tax today, in lieu of paying capital gains taxes tomorrow? For pre-tax money, when it's finally withdrawn during retirement, it will be seen as ordinary income, not capital gains. The essence of the question of Traditional versus Roth relies on your estimate of your future income tax rate during retirement, presumably, when you've stopped working. Maybe think about it this way... Look at your IRS Form 1040, Line 1a. When that line reads $0 in the future, what do you think your marginal income tax rate will be? At the 3...
by retired@50
Wed Mar 27, 2024 10:17 am
Forum: Personal Investments
Topic: Turning 30, Investment Checkup / Simplification
Replies: 19
Views: 1541

Re: Turning 30, Investment Checkup / Simplification

tonescarp wrote: Wed Mar 27, 2024 10:16 am
retired@50 wrote: Wed Mar 27, 2024 10:01 am Buying a bond fund (FXNAX) in taxable doesn't sound right to me.
You are correct. I had my "AX's" mixed up, meant to say "FSKAX" for the total market index fund.
retired@50 wrote: Wed Mar 27, 2024 10:01 am Congratulations on getting away from "the guys". You'll be richer for it.
Thanks!
Good for you.

Regards,
by retired@50
Wed Mar 27, 2024 10:14 am
Forum: Personal Investments
Topic: [Wait for new Dept. of Labor Financial Advisor Protections?]
Replies: 13
Views: 871

Re: [Wait for new Dept. of Labor Financial Avisor Protections?]

dagsboro wrote: Wed Mar 27, 2024 10:02 am If I want to best protect my spouse from inferior financial advice, should I wait until proposed new U.S. Dept. of Labor Financial Adviser rules and regulations are instituted? They reportedly strengthen fiduciary requirements and will apply to those recommending and selling securities and annuities.
I'd suggest you teach your spouse the basics of investing.

Even the most disinterested people can comprehend a 3 fund portfolio. Find a decent CPA if you need help with income tax preparation.

Regards,
by retired@50
Wed Mar 27, 2024 10:01 am
Forum: Personal Investments
Topic: Turning 30, Investment Checkup / Simplification
Replies: 19
Views: 1541

Re: Turning 30, Investment Checkup / Simplification

tonescarp wrote: Wed Mar 27, 2024 9:50 am
To summarize (Please correct me if I am wrong):
1. Sell all current taxable accounts
2. Max out IRA contributions
3. Increase contributions to 401k's so they hit yearly max
4. Put the leftover taxable money into my own Fidelity brokerage account (i.e. FXNAX)
5. Sell from new taxable account as needed to continue hitting tax-advantaged maxes

Does that sound like the correct approach?
Buying a bond fund (FXNAX) in taxable doesn't sound right to me.

Typically, you'd want to hold your bond funds in a tax-deferred account.

More details here: https://www.bogleheads.org/wiki/Tax-eff ... _placement

Congratulations on getting away from "the guys". You'll be richer for it.

Regards,
by retired@50
Wed Mar 27, 2024 9:54 am
Forum: Personal Investments
Topic: Future Guidance
Replies: 4
Views: 458

Re: Future Guidance

... I've also got 12k in IBM stock that an uncle bought be when I was little at Compushare. ... Some of me wanted to sell the IBM, and use that as a starting point and maybe open a second brokerage account at Fidelity or somewhere and use that money. I wanted to track it's growth seperate from other things. Don't know a good way to do that without lumping it into my current investments. It's been a while since I've dealt with Compushare, but I don't recall any groovy interface or website to track the value of shares. You could try to find out the cost basis in these shares as step #1. Print it. Copy it. Keep a record. Then, you could transfer them in-kind to Vanguard - in a separate and distinct (brand new) brokerage account in your name. ...
by retired@50
Wed Mar 27, 2024 9:45 am
Forum: Personal Investments
Topic: Withdrawal Strategy Help Requested
Replies: 13
Views: 1270

Re: Withdrawal Strategy Help Requested

connor77 wrote: Wed Mar 27, 2024 9:34 am ... I'm not super comfortable buying equities with my taxable CD proceeds (when they mature) from a sleep at night standpoint. I will, however, bumping up my equity position slowly in tax deferred accounts.
Maybe if you read and understand the wiki page on tax efficient fund placement you'll feel better about buying stock funds in your taxable account. Incidentally, this will also create less taxable income, which should help with your other goals... ACA subsidies and Roth conversions.

Regards,
by retired@50
Wed Mar 27, 2024 9:32 am
Forum: Personal Investments
Topic: I think my Mom, recently widowed, is looking at a tax bomb
Replies: 28
Views: 4948

Re: I think my Mom, recently widowed, is looking at a tax bomb

A somewhat related question, if one needs to move to assisted living, is the entire cost a deductible medical expense (subject to minimum) or just the care component? Some facilities have a base rent plus varying levels of care at additional cost. Other facilities include some level of care in the base. Then there's a community fee upfront, and assorted other charges. What is potentially deductible? No, the entire cost is usually not deductible. You can find some guidance via Googling, a physican needs to do an assessment of need to determine what the individual cannot do themselves, etc. Then of course the medical costs must exceed a sizeable percentage of income. The percentage, at least currently, is 7.5% of AGI. It has moved around in ...
by retired@50
Tue Mar 26, 2024 5:34 pm
Forum: Personal Investments
Topic: Rolling over 401k
Replies: 4
Views: 401

Re: Rolling over 401k

I am green at this and thought I could reach out here to ask question. I am currently retired and have Fidelity 401k in Stable Value Fund. I want to rollover to earn more with little risk. Being 72yo I am very conservative and cautious investor. The Fidelity advisor suggests putting it in Deferred Fixed Annuities. All I know about annuities is give someone a lump sum and if I die tomorrow that money is gone... LOL. The advisor told me these are not like that. He told me I can withdraw my RMD with no problem before maturity. Any input? Thanks Welcome to the forum. You need to be careful with annuities. :shock: Some are okay, and have simple, easily understood features, while other annuities are wildly complex and incomprehensible. The two &...
by retired@50
Tue Mar 26, 2024 5:28 pm
Forum: Personal Investments
Topic: Guaranteed Investments
Replies: 4
Views: 541

Re: Guaranteed Investments

There's a difference between investments (which have risk) and deposits which typically don't have risk, due to FDIC insurance.

If you're looking for guaranteed - stick with deposits.

P.S. don't forget about inflation, as SmileyFace reminds you above.

Regards,
by retired@50
Tue Mar 26, 2024 5:26 pm
Forum: Personal Investments
Topic: Roth Conversion & Inherited IRA?
Replies: 6
Views: 702

Re: Roth Conversion & Inherited IRA?

tostjoe64 wrote: Tue Mar 26, 2024 3:45 pm
1. Should I perform Roth Conversions ...
Welcome to the forum.

Have you read the wiki page on Roth conversions?

Especially the "Whether, when, and how much to convert" section. It may help you decide.

Regards,
by retired@50
Tue Mar 26, 2024 3:25 pm
Forum: Personal Investments
Topic: I think my Mom, recently widowed, is looking at a tax bomb
Replies: 28
Views: 4948

Re: I think my Mom, recently widowed, is looking at a tax bomb

Mom is currently disabled and, soon, will likely require long-term / end-of-life care beyond what I can provide (assisted living / nursing home). This is likely sometime between the next 1 to 5 years. Dad was not just her husband, but also her long-term care nurse. It's possible she'll be eligible for medical expense deductions if she needs assistance with 2 or more activities of daily living. ADLs. My FIL had 6 figures of medical expense deductions for several years. The money to pay those huge costs was taken from an IRA (seen as ordinary income) and then those expenses were promptly deducted on his Form 1040 which reduced his income dramatically. He wound up in a low tax bracket. More details here: https://www.irs.gov/taxtopics/tc502 an...
by retired@50
Tue Mar 26, 2024 2:34 pm
Forum: Personal Investments
Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Replies: 17
Views: 1432

Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund

BettyBon wrote: Tue Mar 26, 2024 1:07 pm Will do! Awaiting my advisor to return my call/email to cancel them.
Also, my company doesn't offer the FXIFX Fidelity Freedom Index 2030 Fund with 0.12% expense ratio but informed me that my current FID FRDM BLND 2030 T Fund has an expense ratio of 0.20% so I'll put everything in that once I can cancel the advisor.
You may need to follow up with the adviser if you have already told them you intend to cancel. That's likely a call they won't return in a hurry.

Regards,
by retired@50
Tue Mar 26, 2024 10:51 am
Forum: Personal Investments
Topic: Advice for 29 year old daughter
Replies: 32
Views: 2813

Re: Advice for 29 year old daughter

doctormike wrote: Tue Mar 26, 2024 10:47 am Thanks Tashnewbie and Retired@50. Defenitely understand that she may want to transition to non-roth in the the future. I'm still thinking that it makes sense to do a Roth IRA instead of a Roth 401K to allow a broader selection of investments. Does this make any sense? And any thoughts on VTSAX?

Thanks
That would depend on the options in her 401k plan? I presume she'd have the same choices available whether she uses Roth or Traditional.

If you want help with the 401k choices, you'll need to list them for the forum. Are there high fees or high expense ratios in the plan?

Of course, VTSAX is a fine choice for a Roth IRA.

Regards,
by retired@50
Tue Mar 26, 2024 10:32 am
Forum: Personal Investments
Topic: Advice for 29 year old daughter
Replies: 32
Views: 2813

Re: Advice for 29 year old daughter

My daughter is 29 years old. She is single and her job pays about $80K/year. She owns a condo that she rents out and is slightly cashflow positive. Lives at home with parents for now and is saving money to purchase another residence. She has taken my advice and has been putting $10K/year in a roth 401K at her work. I just found out that her employer doesn't match on the 401K but instead they deposit profit sharing in her 401K (Not Roth) and her participation in the profit sharing isn't based on participation in the 401K. I told her she'd be better off putting the max into a Roth IRA each year instead of all the savings going in her Roth 401k because 40 years from now she won't be faced with RMDs . Being that she has a 40 year window I'm re...
by retired@50
Tue Mar 26, 2024 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 6053
Views: 1037414

Re: Should I move it all to Fidelity?

SmileyFace wrote: Tue Mar 26, 2024 10:21 am
retired@50 wrote: Tue Mar 26, 2024 10:21 am
Stan Dup wrote: Tue Mar 26, 2024 9:25 am ... Less fees on my IRAs.
This ^^^ is certainly a reason to move an IRA away from a bank or credit union.

Regards,
In the case of the OP I think it is moving "retirement accounts" from Vanguard.
I see that now... If the OP is referring to Fidelity "Zero" funds instead of paying 3 or 4 basis points at Vanguard, then it may not matter all that much.

Regards,
by retired@50
Tue Mar 26, 2024 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 6053
Views: 1037414

Re: Should I move it all to Fidelity?

Stan Dup wrote: Tue Mar 26, 2024 9:25 am ... Less fees on my IRAs.
This ^^^ is certainly a reason to move an IRA away from a bank or credit union.

Regards,
by retired@50
Tue Mar 26, 2024 10:17 am
Forum: Personal Investments
Topic: Looking for a new savings/investment vehicle.
Replies: 15
Views: 994

Re: Looking for a new savings/investment vehicle.

OONeill57 wrote: Tue Mar 26, 2024 9:56 am I'm maxing out my 401K and my employer provides a nice match. I also max out my IRA every year. I'm looking for some other tax deferred vehicle so I can invest/save for my future. I've had people try to sell me on lifeinsurance policies (7702), but not really buying that as an option yet. Any thoughts or ideas would be appreciated.
Welcome to the forum.

A Health Savings Account comes to mind, if you're eligible.

See the wiki for details.

Prioritizing investments: https://www.bogleheads.org/wiki/Priorit ... nvestments

HSA: https://www.bogleheads.org/wiki/Health_savings_account

As far as life insurance goes, term life is typically best.

Regards,
by retired@50
Tue Mar 26, 2024 10:11 am
Forum: Personal Investments
Topic: Buy OOS Muni Bonds?
Replies: 11
Views: 449

Re: Buy OOS Muni Bonds?

Rocky Mtn Man wrote: Tue Mar 26, 2024 10:05 am A muni money market may work for you. Zero price fluctuation.
Agreed. VMSXX may fit the bill. No worry about credit risk, and no time spent on investigating bond issuers.

Regards,
by retired@50
Tue Mar 26, 2024 10:08 am
Forum: Personal Investments
Topic: Roth Conversion - Source for Paying Taxes
Replies: 31
Views: 2744

Re: Roth Conversion - Source for Paying Taxes

I'm 62 and considering traditional to Roth conversions but have a couple of questions that I can't find answers to in the Roth conversion wiki https://www.bogleheads.org/wiki/Roth_conversion or elsewhere. I understand why you'd pay taxes from savings/cash assets if you'd otherwise be penalized for the amount taken from a conversion that is used to pay the taxes. But at 62 years old are there any advantages or reasons to pay the conversion taxes from savings rather than conversion proceeds? So long as I manage the conversions the portion used to pay taxes would be taxed at a lower rate than the taxes already paid on the savings taxes would otherwise come from. In a related question - if the traditional IRA investment as overly complicated (...
by retired@50
Tue Mar 26, 2024 9:59 am
Forum: Personal Investments
Topic: Buy OOS Muni Bonds?
Replies: 11
Views: 449

Re: Buy OOS Muni Bonds?

AbileneCstat wrote: Tue Mar 26, 2024 9:55 am I am solely interested in targeting specific individual muni bonds with very short term maturity dates. I do not want to invest in a fund where prices will fluctuate. I am planning to purchase the bonds to park cash (that won't generate more taxable income ) to pay a a ton of taxes next April for a large Roth conversion (also triggering large LTCG's this year to pay those taxes).
In that case, choose your issuer wisely.

I'd be looking for a state with a high credit rating, and a general obligation bond.

Regards,
by retired@50
Tue Mar 26, 2024 9:51 am
Forum: Personal Investments
Topic: Traditional Vs Roth 401k
Replies: 5
Views: 539

Re: Traditional Vs Roth 401k

So the last two years me and my wife have started contributing to all Roth401k. We currently reside in a high tax state (NY) and are in the middle of the 24% tax bracket. We started doing the Roth for tax diversification purposes as everything prior has been traditional 401k. Based on projections it seems we may end up having more income in retirement than we do currently. I would like to retire to a low/no income tax state in retirement but thats at least 18 years away and who knows what the landscape will be then. so at this point im questioning if it would be better to just do traditional and invest the tax savings now in brokerage or to continue on with the Roth 401k at least until the current tax brackets expire. Given what you descri...
by retired@50
Tue Mar 26, 2024 9:46 am
Forum: Personal Investments
Topic: Buy OOS Muni Bonds?
Replies: 11
Views: 449

Re: Buy OOS Muni Bonds?

I live in Texas (with no state income tax.) Am exploring purchasing out of state muni bonds, but am unclear on all the warnings about doing so because of state income taxes. I "get" the general rule is that you want to buy munis issued from within your state of residence to avoid state income tax. If I were to buy a New York or California (or other Out Of State "OOS") issued muni, would those states withhold a tax on the muni interest paid to me? If not, then the general rule stated above appears not to apply to residents of states with no income tax. If so, the I can purchase munis issued from ALL STATES and not be concerned about state income taxes, correct? Welcome to the forum. Are you considering individual municip...