Bogleheads.org

BolderBoy

I'm a complete beginner to investing, so I was wondering how do you choose which companies are good to invest in, and which ones to stay away from? I always see people talk about doing your due diligence, but I'm not sure what that entails. 1. Do not buy individual stocks. 2. Buy a mutual fund that...

BolderBoy

Desired Asset Allocation: 80 Stocks / 20 Bonds 401K: Company Match= 50% of the first 4% of my pay 11% VANG INST 500 TRUST (Expense Ratio: 0.011%) 5% VANG INST TOTAL SK TR (Expense Ratio: .015%) 4% FRTR MFG GLB EQ IS (Expense Ratio: .85%) 4.7% VANG MD CP IDX IS PL (Expense Ratio: .03%) 1% BARON GROW...

BolderBoy

Thanks to all. I live on 22k per year at this point. Was thinking of SS a bit early to protect the cash reserve but hoping that after the move, with 700k to invest I should be able to invest and draw from that instead of SS. If you can find a way to delay SS until age 70, that is usually the best o...

BolderBoy

In your IRA leave the option set at "reinvest dividends and capital gains". Don't change that.

Exchange (sell) enough stock mutual fund into (buy) bond mutual fund to accomplish your rebalance.

Done.

BolderBoy

PowderDay9 wrote: ↑Sat Apr 17, 2021 11:16 pm Cost for Jim Lange to "run the numbers": $10,000

Cost to post on bogleheads and have them run the numbers: $0

+1. This. Even if it took you 10 hours to post your situation in the forum preferred format (it won't), you'd be making $1000/hr.

BolderBoy

... I’ve been thinking of converting some of those traditional IRA to a Roth. I’m know that I’d pay taxes on those conversions. Would those taxes just be at my current marginal rate? I’m assuming 22%. I’m also assuming that if I convert too much, it might push me to the next marginal tax bracket (?...

BolderBoy

Anyone else done this? How well did it work? I did this from age 61 -> 70 (SS) while making Roth conversions each year. Worked splendidly. Had set aside $400k to carry me through and at age 70+ still had $250k+ left over (goodly market appreciation). Pay attention to the other advice you got upthre...

BolderBoy

embwbam wrote: ↑Thu Apr 15, 2021 11:07 pmHere's a poor strawman: start at 60/40 (adjust for risk tolerance), during a crash of 30% or higher, rebalance to 70/30, at 40%, rebalance to 80/20, etc. So at a 50% crash you'd be 90/10, and a 60% crash would be 100% stocks.

What you are describing is not rebalancing in the BH philosophy sense.

BolderBoy

Beensabu wrote: ↑Thu Apr 15, 2021 10:58 pm
embwbam wrote: ↑Thu Apr 15, 2021 10:24 pm ...for someone currently in retirement and making withdrawals, wouldn't it theoretically make sense to move to a higher equity allocation in a crash?
See if you can make yourself rebalance first.

+1. This.

BolderBoy

Pimmerman wrote: ↑Thu Apr 15, 2021 7:37 pmThe only concern that presents itself to me is the possibility that a possible future son-in-law could somehow take some of the investments should he become a ex son-in-law.

IANAL.

Isn't this what pre-nups are designed to prevent?

I like the gifting now for their rIRAs approach.

BolderBoy

Or would you just stay the course at this point and ride it out? I realize I don't have much of my portfolio in Bonds so what are others with substantial bond allocations doing? Or perhaps have already done? I'm not an expert on bonds. In early January, VG reps were suggesting folks consider shorte...

BolderBoy

delamer wrote: ↑Thu Apr 15, 2021 9:44 am Yes, you can fund your child’s Roth with your money and she can keep her earnings.

And yes, you can’t contribute more than the gross on her W-2(s).

Agreed. These are the answers to your questions.

BolderBoy

cyclist wrote: ↑Tue Apr 13, 2021 8:56 pm Our insulators built little sealed boxes around our recessed lights before blowing in insulation. This successfully avoids contact issues and drafts.

My insulation contractor did this beforehand as well.

BolderBoy

Contribution and conversion are separate steps. Contributions are allowed for retroactive tax year as you've done, but conversions are always accounted for in the current tax/calendar year. This is a common confusion. +1. This is the correct answer. Sorry OP, I don't think you can undo this. Based ...

BolderBoy

I've never known anyone who already had a non-academic job whose job prospects were improved by getting a PhD. Obviously can vary by the field but you should have a much clearer idea of what you'd get out of this. Pure enjoyment of research? Change fields? Switch to teaching? Agree with this. If yo...

BolderBoy

Depending on your comfort level, you should keep 10 to 20 years of annual expense in bonds. And, 1 to 3 years of expense in CASH. This is independent of any market level. I like this advice and am sort of following it myself. Been retired 10 years. Think of it this way, "Use stocks to build we...

BolderBoy

MrJedi wrote: ↑Tue Apr 06, 2021 11:45 amContribution and conversion are separate steps. Contributions are allowed for retroactive tax year as you've done, but conversions are always accounted for in the current tax/calendar year. This is a common confusion.

+1. This is the correct answer.

Sorry OP, I don't think you can undo this.

BolderBoy

Make sure there is D&O insurance coverage provided then do it. It can be quite eye opening and some of the stuff the Board has to listen to can be quite amusing.

BolderBoy

One thing I think matters but is hard to do is rebanciong at least in part to take advantage of big stock market moves in the negative 15-20% range. It is possible to rebalance into the poverty but those who bought in March 2020 have been well rewarded. The same holds for Feb/March 2008. Do this on...

BolderBoy

I'm sort of overwhelmed by the amount of info in your posting. My initial thought is that you are already planning to do the most important thing about investing - investing a lot every year. Looks like you are maxing out (or nearly maxing out) everything you can. And "savings rate" trumps...

BolderBoy

Could y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds. What you are describing would be the type of advisor that a very HNW person would hire as a full-time employee, dedicated to providing services just for t...

BolderBoy

1) If we do some Roth conversions over the next few years, there is a 5 year holding period on each conversion, right? No. Is there any penalty for withdrawals prior to 5 year wait and is that penalty for any withdrawal or just earnings? (We don’t have any Roth accounts. We had some a few years ago...

BolderBoy

This can be somewhat confusing. If you defer some portion of your 2021 RMD to 4/1/2022, the amount of your 2021 RMD does not change. However, by not completing the 2021 RMD in 2021, the 12/31/2021 balance will be somewhat higher than it would have been. This somewhat higher 12/31/2021 balance will ...

BolderBoy

If you are retiring in a few months, you should change your stock to bond ratio tomorrow to what you want it to be in your early retirement. Yes, sell stocks and buy bonds. At this point, you are interested in preservation. Bonds and other fixed income assets may not be the best paying investment o...

BolderBoy

chemocean wrote: ↑Sat Apr 03, 2021 11:51 pmIf you wait, establish an IRS online account and get a PIN for this year's return to avoid fraud from someone else filing your return for you.

I like this suggestion, presuming CA is one of the IRS's allowed states for obtaining a voluntary PIN.

BolderBoy

Soon2BeDad30 wrote: ↑Sat Apr 03, 2021 10:10 am How are we doing?

For your ages I think you are doing great. Congratulations on the upcoming new addition to your family.

It appears you have well thought out and accounted for your financial life. Just keep it up.

BolderBoy

Thank you Kelly for providing a really excellent answer.

BolderBoy

The IRS is implementing the new RMD tables effective in 2022. There will be no change to the 2021 RMD divisors. 2022 RMDs will therefore be a little lower (~ 6%) which will slightly reduce the cost of deferring all or part of the 2021 RMD to 2022. So if one defers a 2021 RMD to 2022 then one uses t...

BolderBoy

There is NO BEST all-in-one, set it and forget portfolio. Please get REAL. There are plenty of GOOD ENOUGH such portfolios and single funds. If you change your mindset now, then you will probably be better off. Thanks, yes perfect is the enemy of the good. The purpose of my post was to find out pra...

BolderBoy

edudad wrote: ↑Sat Apr 03, 2021 2:51 am Have about $200k cash for investment. Time horizon about ~20 years.

What is the best strategy in current market conditions?
should we go all in with the $200k one fine day this next week

No question in my mind, do this.

Others have commented about your choice of investments.

BolderBoy

What is the best password protection service that people have used? Yubikey? Lastpass? Dashlane? 1Password? Combo of above? I am clueless and searching for something idiotproof. Idiot-proof may not exist. Doubtful any of them are perfect. I like KeePassXC - free, completely open-source and cross-pl...

BolderBoy

TheTimeLord wrote: ↑Sat Apr 03, 2021 2:31 pmLike many people here I did some TLH last March and I am now sitting on some pretty strong gains. Since this year will be a lower income year I am thinking about harvesting the gains. Anyone else considering doing something similar?

Do you need the cash?

Curiosity: what is your AA?

BolderBoy

The IRS is implementing the new RMD tables effective in 2022. There will be no change to the 2021 RMD divisors. 2022 RMDs will therefore be a little lower (~ 6%) which will slightly reduce the cost of deferring all or part of the 2021 RMD to 2022. So if one defers a 2021 RMD to 2022 then one uses t...

BolderBoy

Sigz wrote: ↑Thu Apr 01, 2021 9:27 pmThus, I guess my net worth is somewhere around $270,522 - net positive.

Okay, good. And that represents an increase in your net worth over two years ago, right?

BolderBoy

The 2021 RMD is based on your account balances at the end of year 2020. The 2022 RMD is based on your account balances at the end of year 2021. I had not thought about that, but if you take the 2021 RMD in 2021, the RMD for 2022 will be just a little bit smaller. Hmmm. 2022 RMD might be just a litt...

BolderBoy

From my personal list: Change Pct AGG 0.3 BNDX 0.12 EFV 0.45 FNDF 0.56 FREL 0.47 IAGG 0.24 IEFA 1.07 IEMG 1.39 IJH 1.02 IJJ 0.74 IJR 0.92 IVE 0.44 IVV 0.88 IYR 0.4 SCZ 1.28 VBR 0.72 VEA 0.99 VGIT 0.22 VIOO 0.8 VNQ 0.52 VO 1.01 VWO 1.27 VXF 1.23 I thought this forum might appreciate the humor in it ...

BolderBoy

Age: Both 48 Desired Asset allocation: 95/5 This is a very aggressive AA for your ages. People like to make up for lost time but taking on too much risk can be crippling at an inopportune time. I'm reminded of 2000-2002 and 2007-2009. In both times a goodly number of people had to delay their retir...

BolderBoy

Mudbone wrote: ↑Thu Apr 01, 2021 12:12 pmThe income over the last 5 years I’ve rented it hasn’t quite covered all the expenses; I end up paying about $300.00 a month.

Sell. Don't keep a consistently money-losing asset.

BolderBoy

1. Northwest is right.
2. 20-25 years is plenty.
3. Bad product.
4. Sounds like a gimmick. Avoid it.
5. Both good companies.
6. I think in the USA it is 2 years or so. Not positive.

BolderBoy

I would like to hear thoughts and advices from forum members regarding this matter, i.e., do you trust the current value of your portfolio in making your retirement decision? If not, how much do you discount it? I trusted the results of firecalc.com and cFireSim.com. After setting up ridiculously p...

BolderBoy

eye.surgeon wrote: ↑Wed Mar 31, 2021 5:00 pm I'm debating this investment vs throwing this into my AA of equities.

Which investment would cause you the least worry over time?

(I wouldn't do it - during my career I saw a number of very successful surgery centers implode for various reasons)

BolderBoy

OP -

I'm confused by your posting. Is your net worth a negative number right now?

BolderBoy

BowHunt3r wrote: ↑Thu Apr 01, 2021 10:41 am I have the option to invest in 30 different plans.
I can post them here or pm you

Do you mean you have the option of 30 different funds?

Best to post here publicly so everyone can offer advice.

BolderBoy

Broken Man 1999 wrote: ↑Thu Apr 01, 2021 10:20 am My credit is frozen, do I need to unfreeze? The IRS site says it would be a soft pull.

Apparently you do not need to unfreeze. I signed up for an IRS account in Sep 2020 and didn't unfreeze my credit bureau accounts to do so.

BolderBoy

If I were to DCA what’s the kind of period should I do for a sum like this? 3 months/6 months/1 year/other ? General critique on my portfolio would also be appreciated. Thanks! Tax Rate: 35%-37% Federal, 0% State Taxable Vanguard Brokerage Index Funds $27,344.08 - VBTLX If you must DCA, get it all ...

BolderBoy

I have a messy portfolio because I started investing in late January this year... Tax Rate: 24% Federal, 9.3% State Taxable 6% cash 2.5% Invesco QQQ Trust Series 1 (QQQ) (0.2%) 2.1% Invesco Nasdaq 100 ETF (QQQM) (0.15%) 12.6% SPDR S&P 500 Trust ETF (SPY) (0.09%) 1.2% SPDR Portfolio S&P 500 ...

BolderBoy

student wrote: ↑Tue Mar 30, 2021 7:52 amI have frozen/locked by credit report.

This is the best you can do. Your personal info is now tucked away on the dark web somewhere. You may or may not ever hear more about it but surely if your info is used it probably won't be used for years.

BolderBoy

You can probably do it but I'll wager that you'll start feeling house-poor within a year.

BolderBoy

can I do anything to help get my score up? Don't miss any more payments. Otherwise, just wait. Could take years (I missed 1 payment in 2017 and the credit bureau says it won't be cleared from my reports until 2024.) My 800+ score dropped to 730 within 6 months and has been hovering around 740 ever ...

BolderBoy

The system up there allows for 100% autonomy, no employment, better hours, comparable pay(although will not have the same income potential as the USA considering taxes/value of currency), and slightly higher taxes(currently live in a HCOLA). We had a poster here 3 years ago who went to Canada for a...

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