Search found 1592 matches

by tashnewbie
Tue Jun 22, 2021 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to fund large expense? Taxable, EF, btc, loan?
Replies: 23
Views: 1395

Re: Best way to fund large expense? Taxable, EF, btc, loan?

At your NW, I don’t think you need a separate EF. Your taxable account is your EF. Even if stuff really hit the fan, that account should be adequate to address whatever funding needs you have. Check out Big ERN’s blog series about going with 0 EF for more information on that perspective. I would liq...
by tashnewbie
Tue Jun 22, 2021 11:38 am
Forum: Personal Investments
Topic: Made Roth IRA contribution mistake - Prorata rule issue
Replies: 19
Views: 1023

Re: Made Roth IRA contribution mistake - Prorata rule issue

To my knowledge, you can’t recharacterize a Roth conversion (which is what the second step of the regular backdoor process is and what you appear to have done). If you can’t deposit the pension check into a 401k or another workplace plan, I think the only way to avoid the pro rata rule is to do a r...
by tashnewbie
Tue Jun 22, 2021 11:28 am
Forum: Personal Investments
Topic: Portfolio Review Request: Late 30s couple
Replies: 12
Views: 2037

Re: Portfolio Review Request: Late 30s couple

I think it’d make sense to contribute enough into traditional 401k for him so that you’re in the 12% federal tax bracket. After you’re in that bracket, you could do Roth 401k contributions. If you’re in the 12% bracket, I also think it’d make a lot of sense to convert (and pay taxes on) his Rollover...
by tashnewbie
Tue Jun 22, 2021 11:13 am
Forum: Personal Investments
Topic: Saving for college as an adult
Replies: 14
Views: 1077

Re: Saving for college as an adult

You’re doing extremely well financially without a college degree. Why the desire or need to go back now? Do you think you need it to continue advancing in your career?

How many years will it take to get the degree?
by tashnewbie
Tue Jun 22, 2021 11:06 am
Forum: Personal Investments
Topic: Individual HSA Advice
Replies: 2
Views: 191

Re: Individual HSA Advice

Does your employer offer a HSA-eligible health plan? It probably doesn’t, given the fact that it doesn’t offer a HSA, but it’s not impossible (my former employer offered a HSA-qualifying plan but didn’t sponsor a HSA itself). Look to see if any of the health plan options have “HSA eligible” or somet...
by tashnewbie
Tue Jun 22, 2021 11:01 am
Forum: Personal Investments
Topic: Made Roth IRA contribution mistake - Prorata rule issue
Replies: 19
Views: 1023

Re: Made Roth IRA contribution mistake - Prorata rule issue

To my knowledge, you can’t recharacterize a Roth conversion (which is what the second step of the regular backdoor process is and what you appear to have done). If you can’t deposit the pension check into a 401k or another workplace plan, I think the only way to avoid the pro rata rule is to do a re...
by tashnewbie
Tue Jun 22, 2021 10:33 am
Forum: Personal Investments
Topic: Overall portfolio check up after 6 years, and more questions
Replies: 6
Views: 607

Re: Overall portfolio check up after 6 years, and more questions

I would definitely max a backdoor Roth for her before any 529 investments. The Roth IRA conversion principle can be withdrawn tax and penalty free for any purpose. Just make sure you do the 2 steps of the backdoor process close together.
by tashnewbie
Sun Jun 20, 2021 8:15 pm
Forum: Personal Investments
Topic: Portfolio Review Request: Late 30s couple
Replies: 12
Views: 2037

Re: Portfolio Review Request: Late 30s couple

1. Portfolio looks good overall. 2. To avoid potential wash sales in the taxable account if you ever want to tax loss harvest, it might make sense to invest in VFIAX (500 index) in the IRAs. 3. If you can only afford to contribute $6k/year into Roth IRA, then I’d split that evenly between his and he...
by tashnewbie
Sun Jun 20, 2021 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Debt averse but took 0% car financing over cash rebate. Need advice.
Replies: 56
Views: 3843

Re: Debt averse but took 0% car financing over cash rebate. Need advice.

There is no such thing as a perfect deal. If you take 0% financing, there is no reason to put a penny down. I agree, but then I’d have to field questions from friends, family, coworkers, etc. as to how I could afford $450/month in payments (even though I know I’d be paying from my cash savings). Yo...
by tashnewbie
Thu Jun 17, 2021 1:01 pm
Forum: Personal Investments
Topic: Starting out late
Replies: 4
Views: 706

Re: Starting out late

Agree with others that 50/50 allocation seems very conservative for folks your ages. It’s okay if you tend to be more risk averse, but I think you can stand to increase stock allocation. Set up your portfolio, keep making max annual contributions to workplace plans and Roth IRA (using backdoor if ne...
by tashnewbie
Tue Jun 15, 2021 3:00 pm
Forum: Personal Investments
Topic: Portfolio help and guidance for newbie 38yo
Replies: 13
Views: 1471

Re: Portfolio help and guidance for newbie 38yo

Great advice from retired@50. I just want to point out a couple overarching themes to keep in mind for the future: 1. Don't use Roth 401k in the future (unless it's part of the Mega Backdoor Roth; see wiki for more information on that). Use traditional 401k. In your tax bracket and with your curren...
by tashnewbie
Mon Jun 14, 2021 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to find ways to make extra money
Replies: 34
Views: 2804

Re: Trying to find ways to make extra money

Keep your eyes peeled for better paying jobs in your field?
by tashnewbie
Mon Jun 14, 2021 1:58 pm
Forum: Personal Investments
Topic: Portfolio help and guidance for newbie 38yo
Replies: 13
Views: 1471

Re: Portfolio help and guidance for newbie 38yo

Great advice from retired@50. I just want to point out a couple overarching themes to keep in mind for the future: 1. Don't use Roth 401k in the future (unless it's part of the Mega Backdoor Roth; see wiki for more information on that). Use traditional 401k. In your tax bracket and with your current...
by tashnewbie
Mon Jun 14, 2021 1:33 pm
Forum: Personal Investments
Topic: 401K with Principal Financial
Replies: 18
Views: 1386

Re: 401K with Principal Financial

Welcome to the forum. You haven't provided much detail about your situation. It would be helpful if you provided additional information, so that users can provide more informed advice. See this suggested format for asking portfolio review questions: https://www.bogleheads.org/forum/viewtopic.php?f=1...
by tashnewbie
Sun Jun 13, 2021 2:26 pm
Forum: Personal Investments
Topic: 33 year old Newbie
Replies: 7
Views: 1137

Re: 33 year old Newbie

I agree that you’re doing a lot of things well. I assume you’ll have a nice federal pension. I would just max Roth IRAs for both of you each year (as mentioned above, you can max 2021 contribution for your wife because your MFJ HHI exceeds the total Roth IRA contributions you’ll make ($12k)). I woul...
by tashnewbie
Sat Jun 12, 2021 12:34 pm
Forum: Personal Investments
Topic: Investment planning and best way to deploy lump sum
Replies: 9
Views: 901

Re: Investment planning and best way to deploy lump sum

Welcome to the forum. :happy I agree with the poster(s) above. Pay off the solar and automobile debts, then try to max out the 401k & Roth IRA each year. If you still have money to save after that, consider reading the wiki page on investment priority. Link: https://www.bogleheads.org/wiki/Prio...
by tashnewbie
Tue Jun 08, 2021 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Seeking general advice; turning 33 in a couple months
Replies: 32
Views: 4443

Re: Seeking general advice; turning 33 in a couple months

Overall I think you’re probably doing better in terms of NW than a lot of your peers. But I wouldn’t concern yourself with comparison. Worry about yourself. What have you been doing with the extra money you have from not paying rent while living with your parents? If you’d have an extra $30k cash/ye...
by tashnewbie
Sun Jun 06, 2021 9:40 pm
Forum: Personal Investments
Topic: Portfolio Checkup
Replies: 6
Views: 855

Re: Portfolio Checkup

Looks good to me. Only thing I would investigate is whether a refinance of that mortgage would be worth it (perhaps to 15 years). Some lenders may not be willing to do one with a sub-$100k balance, but I think it can’t hurt to shop around. You may be able to get something around 3%, definitely less ...
by tashnewbie
Sun Jun 06, 2021 7:17 pm
Forum: Personal Investments
Topic: Portfolio Changes/Review
Replies: 2
Views: 450

Re: Portfolio Changes/Review

I’d definitely max the 401k. You’d still be able to put >$25k/year into taxable. Sell everything in the Roth IRA and buy a 500 index fund like VOO, plus an international fund (but don’t use the same or a substantially identical one that you use in taxable). I say this so that you can use a total sto...
by tashnewbie
Sat Jun 05, 2021 10:13 pm
Forum: Personal Investments
Topic: Where to invest money for a 1 year short term goal?
Replies: 3
Views: 556

Re: Where to invest money for a 1 year short term goal?

I agree with other user that you shouldn’t be investing in the stock market if you definitely or probably will need the money in 1-2 years. I bonds can cover $20k total between you and your spouse for 2021 (more if you use a trust, but that’s probably not worth it for you). Check to see if any of yo...
by tashnewbie
Thu Jun 03, 2021 6:06 pm
Forum: Personal Consumer Issues
Topic: What exactly is the selling point of "pre-paid" cellular/mobile plans?
Replies: 117
Views: 9021

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

With prepaid plans, generally if you don’t use the given monthly data amount, you lose it. Maybe there are some plans that allow rollover data? That sounds like what you want. Google might help. I’m not a credit deadbeat. I like prepaid plans because they’re cheaper than comparable post paid plans I...
by tashnewbie
Wed Jun 02, 2021 2:54 pm
Forum: Personal Investments
Topic: seeking advice on what to do with extra cash
Replies: 7
Views: 897

Re: seeking advice on what to do with extra cash

I’m just repeating some of the things others have said: Definitely check out the backdoor Roth. You should move your Rollover IRA into the 401k if you plan to do the backdoor. If the 401k won’t accept the Rollover IRA, don’t bother with the backdoor. I bonds might be worth it for $10k of the money. ...
by tashnewbie
Tue Jun 01, 2021 6:35 pm
Forum: Personal Investments
Topic: Pre-tax retirement account options for spouse without 401k/403b
Replies: 3
Views: 336

Re: Pre-tax retirement account options for spouse without 401k/403b

Check out this link from the IRS: https://www.irs.gov/retirement-plans/2021-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work If your combined MAGI is <$198k, she can deduct a full Traditional IRA contribution ($6k if under 50). If MAGI is t...
by tashnewbie
Sun May 30, 2021 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Sell Secondary Car Now to Take Advantage of Inflated Used Car Values?
Replies: 18
Views: 1497

Re: Sell Secondary Car Now to Take Advantage of Inflated Used Car Values?

The tradeoff is a couple thousand dollars extra versus the possible inconvenience. Given the hopeful future pregnancy and your location, I’d opt for forgoing the money and go for the convenience of having 2 vehicles. +1. The juice doesn’t seem like it’s worth the squeeze. You’ll get what? 0.5% inte...
by tashnewbie
Sun May 30, 2021 2:11 pm
Forum: Personal Investments
Topic: Selecting 401(k) Options
Replies: 2
Views: 255

Re: Selecting 401(k) Options

I would put it in a target date fund, but choose the one whose allocation matches your desired allocation. Don't go by the year in the fund name. +1. That’s what I’d do, plus I’d get rid of BND in the Roth IRA. Keep only equities in your Roth IRA, at least at your age. Check out the tax efficient f...
by tashnewbie
Wed May 26, 2021 9:42 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 9
Views: 918

Re: Portfolio review

Here's the full list of funds I can choose from in my 401k: Large cap LargeCap S&P 500 Index Separate Account (NX097)(0.05%) Small/mid cap MidCap S&P 400 Index Separate Account (NXM97) (0.05%) SmallCap S&P 600 Index Separate Account (NXS97) (0.05%) International International Equity Ind...
by tashnewbie
Tue May 25, 2021 4:24 pm
Forum: Personal Investments
Topic: Portfolio review
Replies: 9
Views: 918

Re: Portfolio review

Do you have any lower cost bond fund options in the 401k? Nope, unfortunately the S&P 500, and the Mid S&P400 and Small S&P600 are the cheapest funds. That's why I threw everything into S&P500. What are the bond fund options? Even if they're not as cheap as those stock index funds, ...
by tashnewbie
Tue May 25, 2021 3:28 pm
Forum: Personal Investments
Topic: Portfolio review
Replies: 9
Views: 918

Re: Portfolio review

Welcome to the forum. At your income level, your Modified AGI may soon be too high to make direct Roth IRA contributions (for 2021, the phase out range is $125k-$140k MAGI). If you're maxing traditional 401k, your MAGI is no more than ~$125k (probably less because of health insurance premiums, which...
by tashnewbie
Tue May 25, 2021 11:45 am
Forum: Personal Investments
Topic: What type of account
Replies: 12
Views: 897

Re: What type of account

Welcome to the forum. Definitely check out this: https://www.bogleheads.org/wiki/Prioritizing_investments And this might be helpful: https://www.madfientist.com/how-to-access-retirement-funds-early/ In general, as a priority of the types of accounts to use: 1. Contribute to workplace plan (401k, 403...
by tashnewbie
Tue May 25, 2021 11:34 am
Forum: Personal Investments
Topic: Looking for input on my portfolio
Replies: 5
Views: 882

Re: Looking for input on my portfolio

Welcome to the forum. You're doing great by not having any debt and maxing your Roth IRA and HSA!! Well done. In your 401k, I'd either keep using the TDF or use combo of MMINX and MPBFX, to get your desired bond allocation. I would probably sell the individual stocks you have in taxable and buy VTI ...
by tashnewbie
Thu May 20, 2021 2:10 pm
Forum: Personal Investments
Topic: Portfolio review: How can I make this painful rebalancing a little less painful?
Replies: 37
Views: 3828

Re: Portfolio review: How can I make this painful rebalancing a little less painful?

If you're not interested in bothering with the backdoor Roth, then I'd recommend not making any TIRA contributions (which are non-deductible in your situation, i.e., don't reduce your taxable income). Just do more taxable investing, instead (after maxing your 401k!). Hi tashnewbie, I have a follow-...
by tashnewbie
Wed May 19, 2021 1:49 pm
Forum: Personal Investments
Topic: Portfolio review: How can I make this painful rebalancing a little less painful?
Replies: 37
Views: 3828

Re: Portfolio review: How can I make this painful rebalancing a little less painful?

Thanks tashnewbie! Some of this makes a lot of sense, while some of it is over my head. I find the Backdoor Roth intimidating, admittedly, but I will do more research on it. (I tend to contribute to my IRA the year after, while doing my taxes.) I also don't know the first thing about how TLH partne...
by tashnewbie
Wed May 19, 2021 11:52 am
Forum: Personal Investments
Topic: Portfolio review: How can I make this painful rebalancing a little less painful?
Replies: 37
Views: 3828

Re: Portfolio review: How can I make this painful rebalancing a little less painful?

This isn't really a direct response to some of your questions, but some things that jumped out to me: If your income is too high to make direct Roth contributions, you should be using the Backdoor Roth . Make the non-deductible TIRA contribution and convert SHORTLY thereafter, when the funds are set...
by tashnewbie
Tue May 18, 2021 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Health care FSA and spouse HSA
Replies: 9
Views: 573

Re: Health care FSA and spouse HSA

Check out page 5 of the IRS 2020 Pub. 969 (https://www.irs.gov/pub/irs-pdf/p969.pdf), which I've excerpted below: Other employee health plans. An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses can’t generally make contributions to an HSA. FS...
by tashnewbie
Tue May 18, 2021 10:24 am
Forum: Personal Investments
Topic: Portfolio \ Saving for Down Payment Advice
Replies: 4
Views: 601

Re: Portfolio \ Saving for Down Payment Advice

What should I do with the $200K that I currently have sitting in savings? Back into CDs? Invest some in traditional IRA? 403b? FYI, if you're maxing a Roth IRA annually, you can't also contribute to a Traditional IRA. The annual IRA contribution limit for people <50 is $6k into Roth, Traditional, o...
by tashnewbie
Tue May 18, 2021 10:17 am
Forum: Personal Investments
Topic: Potential Roth Over-Contribution Scenario / Question
Replies: 3
Views: 187

Re: Potential Roth Over-Contribution Scenario / Question

In my opinion, the easiest way to handle this is to request your IRA custodian recharacterize the 2021 Roth IRA contributions as Traditional IRA contributions. Then proceed with the second step of the backdoor Roth, which is a Roth conversion. You should ONLY do this if you don't have any pre-tax no...
by tashnewbie
Mon May 17, 2021 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a house or not? Would I be house poor?
Replies: 20
Views: 2687

Re: Buy a house or not? Would I be house poor?

Why do you want to move to the HCOL area? Is it closer to family or amenities that you want? Although no one can predict the future, how long do you plan to stay in the HCOL area? Personally, a $500k house or even a $400k one on $100k salary would scare me. But, I know house buying math can be diffe...
by tashnewbie
Wed May 12, 2021 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Best/tax-efficient sources for getting down payment together for a first-time house purchase
Replies: 16
Views: 1258

Re: Best/tax-efficient sources for getting down payment together for a first-time house purchase

Seems like the best of these not so great options is to fully liquidate the taxable brokerage account. Looks like you'll have net $8k capital gains, after using carryover losses to offset gains. Looks like you'd have ~$99k from liquidating this account (if you're in the 15% LTCG bracket). I'd keep s...
by tashnewbie
Mon May 10, 2021 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan debt vs investing
Replies: 24
Views: 1821

Re: Student loan debt vs investing

My wife and I both had Roth 401k and traditional 401ks. We opened up a Roth IRA and rollover IRA fidelity to move the funds to. There should be no penalty or tax for doing it this way right? As long as you're just transferring the Roth 401k to Roth IRA, there is no tax. But you will pay tax if you'...
by tashnewbie
Fri May 07, 2021 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: New Employer - Need advice please
Replies: 1
Views: 601

Re: New Employer - Need advice please

Short answer is “no.”

I also had this question this year. Annual contribution limit is for 401k and 403b. 457s are treated differently and you can also max a contribution to that.

Google something like “can I contribute max to 401k and 403b in the same year?” for confirmation.
by tashnewbie
Thu May 06, 2021 2:19 pm
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2103

Re: Late 20s questions about investment allocation over next few years

Also, once you are married, your spouse should max her 401k contributions ($19.5k/year), if possible with her salary. You'll want as much tax-deferral as you can get, especially since you won't have access to a 401k, at least initially. [You'll also be able to deduct a Traditional IRA contribution (...
by tashnewbie
Thu May 06, 2021 2:14 pm
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2103

Re: Late 20s questions about investment allocation over next few years

Based on what you said above, this Betterment account is a taxable brokerage account. Therefore, you cannot transfer this account into your old 401k (even if the old 401k would accept incoming transfers at this point, which it probably wouldn't). You also can't convert this money to Roth IRA (you c...
by tashnewbie
Thu May 06, 2021 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Backdoor Roth IRA
Replies: 8
Views: 610

Re: Question on Backdoor Roth IRA

Thank you @tashnewbie. I am a little lost here. I have a single Traditional IRA and Roth IRA currently (Traditional / Rollover IRA - called Rollover as I rolled previous 401(k)s into this before) in Vanguard. All the money in it is in VBTLX (about $100k). So, if I am understanding you correctly, th...
by tashnewbie
Thu May 06, 2021 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Question on Backdoor Roth IRA
Replies: 8
Views: 610

Re: Question on Backdoor Roth IRA

Deadline to make 2020 CONTRIBUTION to IRA is May 17, 2021. There is no deadline to do the second step of the backdoor Roth (i.e., Roth conversion). If you make a 2020 non-deductible Traditional IRA contribution (by 5/17/21), you will need to complete a 2020 Form 8606. You can file this form as a st...
by tashnewbie
Thu May 06, 2021 9:35 am
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2103

Re: Late 20s questions about investment allocation over next few years

Near term (before 5/17/21):[/b] 1. Since I had <$124K income in 2020, make a substantial contribution to my old Roth IRA at Vanguard (maybe $60K, leaving me with $35K cash) -this needs to be done before 5/17, right? -is this relevant to my 2020 tax return? As I mentioned, I am in the process of fil...
by tashnewbie
Thu May 06, 2021 9:05 am
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2103

Re: Late 20s questions about investment allocation over next few years

You can only contribute $6k/year to IRA (Roth, Traditional, or a combo). You can’t dump $35k in there for 2020 (many of us wish there was no Roth IRA contribution limit!). You can contribute $6k for 2020 (by 5/17) and $6k for 2021 all at the same time. Given that your income may exceed the limit th...
by tashnewbie
Thu May 06, 2021 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Student loan debt vs investing
Replies: 24
Views: 1821

Re: Student loan debt vs investing

My wife and I both had Roth 401k and traditional 401ks. We opened up a Roth IRA and rollover IRA fidelity to move the funds to. There should be no penalty or tax for doing it this way right? As long as you're just transferring the Roth 401k to Roth IRA, there is no tax. But you will pay tax if you'...
by tashnewbie
Wed May 05, 2021 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan debt vs investing
Replies: 24
Views: 1821

Re: Student loan debt vs investing

I don’t know what you should do about your specific question. But both of you probably should be doing traditional 401k contributions. I’d at least do those to get full employer match. Also, it’s not clear to me what you’re planning to do with the Rollover IRAs. Are those rollovers of Roth 401k or T...
by tashnewbie
Wed May 05, 2021 7:45 pm
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2103

Re: Late 20s questions about investment allocation over next few years

You can only contribute $6k/year to IRA (Roth, Traditional, or a combo). You can’t dump $35k in there for 2020 (many of us wish there was no Roth IRA contribution limit!). You can contribute $6k for 2020 (by 5/17) and $6k for 2021 all at the same time. Given that your income may exceed the limit thi...
by tashnewbie
Wed May 05, 2021 2:36 pm
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2103

Re: Late 20s questions about investment allocation over next few years

I think you're in great shape overall. I agree with user above that it's not ideal to use a TDF in taxable. You mentioned you have Betterment TLH turned on. I don't see how there can be any TLH of a TDF. You don't need to pay Betterment a percentage of your assets to hold a TDF. You can EASILY do th...