Search found 7296 matches

by lakpr
Sun Apr 11, 2021 1:50 am
Forum: Personal Investments
Topic: Can I have a employer Traditional 401K and a Roth IRA simultaneously and contribute to both in the same year
Replies: 9
Views: 894

Re: Can I have a employer Traditional 401K and a Roth IRA simultaneously and contribute to both in the same year

This means I can invest 6K Traditional IRA in my wifes account, 6K in my Roth IRA and 19.5K in my 401K till i hit the 198K AGI/MAGI limit. Why would your wife contribute to a traditional ira when it's unlikely that you would be able to deduct it as the coverage of your 401k applies there too? Why w...
by lakpr
Sat Apr 10, 2021 7:34 pm
Forum: Personal Investments
Topic: Job after lay-off: Which strategy to follow?
Replies: 14
Views: 2429

Re: Job after lay-off: Which strategy to follow?

Thank you for your suggestion, however, can you please clarify below statement: Your "bonds" will earn you more than what the Total Bond Market is paying now if you follow this approach. Are you saying if I invest this $2,800 per year in making the extra down payment for my home, and so m...
by lakpr
Sat Apr 10, 2021 8:52 am
Forum: Personal Investments
Topic: Any experience with Toyota Income Driver Notes?
Replies: 97
Views: 11889

Re: Any experience with Toyota Income Driver Notes?

Does opening an account result in a hit to one’s credit score? I was able to open a note even with a credit freeze at all agencies. Why would there be a credit check at all? You're lending them money not the other way around. If there's any credit checking it should be on TMCC. All financial instit...
by lakpr
Fri Apr 09, 2021 2:11 pm
Forum: Personal Investments
Topic: Job after lay-off: Which strategy to follow?
Replies: 14
Views: 2429

Re: Job after lay-off: Which strategy to follow?

Consider paying down the mortgage / construction loan as part of your bond allocation, then go 100% equities in your 401k plan(s). Your desired asset allocation is 90:10, correct? You are maximizing your 401k and Roth IRA contributions annually, correct? That is a total of $19,500 + $6,000 = $25,500...
by lakpr
Thu Apr 08, 2021 9:42 pm
Forum: Personal Investments
Topic: Backdoor Roth question
Replies: 4
Views: 338

Re: Backdoor Roth question

Firstly, for which tax year did you make contribution to a Traditional IRA? 2020 or 2021? If it is 2020, note the nuance here that the contribution is deemed to have been made on December 31, 2020. The Roth conversion happened in 2021, and no, the Roth conversion can NOT be deemed to be made on 12/3...
by lakpr
Thu Apr 08, 2021 5:34 pm
Forum: Personal Investments
Topic: Need guidance investing in taxable account for first time
Replies: 11
Views: 1307

Re: Need guidance investing in taxable account for first time

Lakpr , Thanks for taking the time to describe your approach in detail. It is straightforward and easy to understand, perfect for me. So from your perspective, after the emergency funds are taken into account, there is really no need to separate any of the investments in the taxable account into 1)...
by lakpr
Thu Apr 08, 2021 10:11 am
Forum: Personal Investments
Topic: 0.65% on a 9 month CD, is there anything better for now?
Replies: 9
Views: 1669

Re: 0.65% on a 9 month CD, is there anything better for now?

Have you taken a look at this thread? https://www.bogleheads.org/forum/viewtopic.php?f=1&t=340088&start=50 Toyota Income Driver Notes offering 1.5% APY on what's essentially a money market fund. No FDIC protection, these notes are technically senior unsecured notes, and TMCC (Toyota Motor Cr...
by lakpr
Thu Apr 08, 2021 9:40 am
Forum: Personal Investments
Topic: After tax 401k v. Back door Roth v taxable
Replies: 27
Views: 1347

Re: After tax 401k v. Back door Roth v taxable

Thanks KlangFool. This was my original question and we kind of got side-tracked with the IRA rollover issue. I am interested in doing the after-tax 401K but need to understand the mechanics of it more. Since when I retire I can roll it over into a Roth IRA and then I can take it out penalty free fo...
by lakpr
Wed Apr 07, 2021 1:03 pm
Forum: Personal Investments
Topic: Please sanity check my retirement plan
Replies: 7
Views: 846

Re: Please sanity check my retirement plan

Please check your 401k plan Summary Plan Description very carefully. It could be that the "Rule of 55" means you should retire from the company after you ACTUALLY attain the age of 55, not earlier in the year that you do turn 55. You would not want your retirement plans thrown for a loop a...
by lakpr
Tue Apr 06, 2021 8:04 pm
Forum: Personal Investments
Topic: Portofoli Review After Promotion
Replies: 10
Views: 986

Re: Portofoli Review After Promotion

I have an additional question with regards doing the (normal) backdoor Roth. I had been contibuting monthly directly to my roth IRA. With using the back door method, would I be able to contribute monthly to a traditional IRA and then convert the money into a roth IRA and then invest it. Thus doing ...
by lakpr
Tue Apr 06, 2021 1:32 pm
Forum: Personal Investments
Topic: Roth conversion
Replies: 28
Views: 1714

Re: Another Roth conversion question

Roth conversions have nothing to do (let me rephrase; should have nothing to do) with market movements. You should do Roth conversions only if you reasonably believe that your CURRENT marginal tax bracket is going to be lower than in the future, especially in retirement. Is that true? If you do not ...
by lakpr
Tue Apr 06, 2021 12:14 pm
Forum: Personal Investments
Topic: 24 Year Old Setting Up Portfolio
Replies: 6
Views: 748

Re: 24 Year Old Setting Up Portfolio

For bonds in the 401k, I'd use Dodge & Cox Income Fund (DODIX) (.42%) For international stock in the 401k, I'd use American Funds - EuroPacific Growth Fund (RERGX) (.46%) Keep in mind that neither of the above funds are ideal, but merely acceptable substitutes. Expense ratios should be kept to ...
by lakpr
Tue Apr 06, 2021 6:02 am
Forum: Personal Investments
Topic: Should my parents invest an inheritance? (No current retirement savings)
Replies: 19
Views: 2013

Re: Should my parents invest an inheritance? (No current retirement savings)

Sounds like the income from farmland and SS is enough for your parents to live on, and this $87k is more of an emergency fund. I second the recommendation of Target Date funds, set it and forget it. But I would go with Target Date 2020, not 2015, a bit more equity risk is ok to take in their situati...
by lakpr
Mon Apr 05, 2021 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Another Mortgage payoff question
Replies: 20
Views: 1283

Re: Another Mortgage payoff question

I am payoff-the-mortgage person, actually I did payoff my mortgage in full 2 years ago. But even I would not shortchange the 401k contributions and Roth IRA contributions. Those must be maxed out first before an additional penny goes into mortgage. Mortgage can be paid off next year if not this year...
by lakpr
Sun Apr 04, 2021 10:00 pm
Forum: Personal Investments
Topic: Small business owner asset planning. Please help me
Replies: 13
Views: 1092

Re: Small business owner asset planning. Please help me

Thats a great idea! So for other than keeping employee happy, is it even worth it for me to do retirement plan? If I can save 50k or more in taxes I want to do it but if I can save few grand here and there, it seems like a more headache than what its worth. If you offer just the plain vanilla 401k ...
by lakpr
Sun Apr 04, 2021 8:12 am
Forum: Personal Investments
Topic: Questions from a 39 year old
Replies: 3
Views: 1259

Re: Questions from a 39 year old

You are doing everything right. The only suggestion I had is to roll your Rollover IRA into the 401k plan, it seems that your 401k plan has excellent choices that you can take advantage of. But then again, you said you are "comfortable" with the aggressive active management, so I would say...
by lakpr
Sun Apr 04, 2021 5:02 am
Forum: Personal Investments
Topic: Small business owner asset planning. Please help me
Replies: 13
Views: 1092

Re: Small business owner asset planning. Please help me

Yes you can do the Roth IRA for yourself. Anyone with earned income can. But.... Firstly, the Roth IRA limit is only $6000 per year. With a $500k income, that is about 1.2%, a mere rounding error. Secondly, at $500k income you are not able to directly contribute to Roth IRA. You need to first contri...
by lakpr
Sat Apr 03, 2021 10:13 pm
Forum: Personal Consumer Issues
Topic: Repair or Replace 2003 Toyota Corolla
Replies: 67
Views: 5517

Re: Repair or Replace 2003 Toyota Corolla

Coincidentally, I had just given up by 2004 Honda to charity (Kars for Kids) as I had become tired of never ending repairs. I would urge you to let it go, let it gooooo...
by lakpr
Sat Apr 03, 2021 8:03 pm
Forum: Personal Investments
Topic: Questions from a newbie in investment field.
Replies: 5
Views: 600

Re: Questions from a newbie in investment field.

Few comments in no particular order. There is no 13% Federal tax bracket, nor a 8% California tax bracket. Based on the incomes you provided a bit later in your post ($126k + $85k), you are straddling the border between 22% and 24% Federal, and firmly in the 9.3% California tax brackets. Please edit...
by lakpr
Sat Apr 03, 2021 7:26 pm
Forum: Personal Investments
Topic: Maxing out 401k, Roth IRA, emergency fund, and no debt... how should I save for a car and home in the short-term?
Replies: 10
Views: 1197

Re: Maxing out 401k, Roth IRA, emergency fund, and no debt... how should I save for a car and home in the short-term?

My ok my advice is at 24 and no debt is to go buy (cash) a cooler car. Don’t waste your youth. I would give the opposite advice; the sooner one realizes that enjoyment in life is not / should not be tied to physical possessions, the better! Buy a reliable car for transportation need. Honda Civic, y...
by lakpr
Sat Apr 03, 2021 7:24 pm
Forum: Personal Investments
Topic: Sold House Now have 100k to Invest...Unsure what to do...
Replies: 5
Views: 801

Re: Sold House Now have 100k to Invest...Unsure what to do...

What is your asset allocation? Invest this money in taxable all in stocks, then rebalance your entire portfolio so that bonds are all housed in your tax-deferred account. You said your tax-deferred accounts are maxed, and you are in mid-30's. Let me take guess and say you have been at your work for ...
by lakpr
Sat Apr 03, 2021 7:16 pm
Forum: Personal Investments
Topic: Maxing out 401k, Roth IRA, emergency fund, and no debt... how should I save for a car and home in the short-term?
Replies: 10
Views: 1197

Re: Maxing out 401k, Roth IRA, emergency fund, and no debt... how should I save for a car and home in the short-term?

My ok my advice is at 24 and no debt is to go buy (cash) a cooler car. Don’t waste your youth. I would give the opposite advice; the sooner one realizes that enjoyment in life is not / should not be tied to physical possessions, the better! Buy a reliable car for transportation need. Honda Civic, y...
by lakpr
Sat Apr 03, 2021 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Illinois State Tax Loophole? What am I missing?
Replies: 74
Views: 9117

Re: Illinois State Tax Loophole? What am I missing?

I have gone through this thread. I also looked at the other thread. https://www.bogleheads.org/forum/viewtopic.php?f=10&t=86262&hilit=ILLINOIS&start=100 I can see some ambiguity about deducting IRA distribution in IL return. For someone who is above the AGI limit, this loophole doesn't ...
by lakpr
Sat Apr 03, 2021 5:50 pm
Forum: Personal Investments
Topic: Need guidance investing in taxable account for first time
Replies: 11
Views: 1307

Re: Need guidance investing in taxable account for first time

I am thinking that I will treat the taxable account for two purposes: An extension of our retirement accounts. Another place to put additional funds. A place to earn more than the close to nothing I am earning in my savings account. For the extension of the retirement account, I plan on investing i...
by lakpr
Sat Apr 03, 2021 5:13 pm
Forum: Personal Investments
Topic: Is it time to just rip off the band-aid
Replies: 15
Views: 2283

Re: Is it time to just rip off the band-aid

You may already do this, but if you donate to charity, give them some of these shares. You might try knocking a couple of years of giving out by moving them into a donor advised fund. That keeps the gains out of MAGI and reduces taxable income (assuming you itemize). Yes we do itemize this is a pos...
by lakpr
Sat Apr 03, 2021 4:05 pm
Forum: Personal Investments
Topic: Small business owner asset planning. Please help me
Replies: 13
Views: 1092

Re: Small business owner asset planning. Please help me

Would there be an advantage of paying off mortgage at low interest rate than putting excess money to stock market via DCA? Leverage. To the extent that you have a dollar and choosing it to invest in the market instead of paying down the mortgage, you are borrowing that dollar at a marginal cost of ...
by lakpr
Sat Apr 03, 2021 3:18 pm
Forum: Personal Investments
Topic: Three Fund Portfolio vs. Target Date Across Four Accounts
Replies: 15
Views: 1518

Re: Three Fund Portfolio vs. Target Date Across Four Accounts

So, if $500k is the optimal pre-tax balance for MFJ, would that make $250k be the optimal pre-tax balance for a Single filer as the MFJ tax brackets tends to double that of single filers? Yes. IF the current marginal tax bracket is 22%. { I also edited the previous post, I realized the poster is si...
by lakpr
Sat Apr 03, 2021 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage and investing
Replies: 7
Views: 1045

Re: Mortgage and investing

What is your intended asset allocation? Paying $2000 in additional principal payment to the mortgage is the same as earning an after-tax 3.75% rate on that principal, or $75 per year. In absolute terms, $75 per year is not going to make any difference. A dinner or two at a medium priced restaurant, ...
by lakpr
Fri Apr 02, 2021 6:20 pm
Forum: Personal Investments
Topic: High expense ratio vs. high tax consequences?
Replies: 18
Views: 1218

Re: High expense ratio vs. high tax consequences?

I double checked: the cost basis is $115,000 so there is still is quite a bit of taxable profit. I just figured how to stop reinvesting the dividends while I figure out the best course of action. I have not traded from this account before. I think you still misunderstood the advice. Starting with 2...
by lakpr
Fri Apr 02, 2021 6:06 pm
Forum: Personal Investments
Topic: 24 Year Old Setting Up Portfolio
Replies: 6
Views: 748

Re: 24 Year Old Setting Up Portfolio

Honestly, I would not see the reason for any bonds in your portfolio at 24 years of age. When you reach a total portfolio balance of $100k, THEN start to slice and dice. 24 years is way too young to be having bonds in the portfolio yet. I believe in the thumb rule of "Age-20" in bonds, by ...
by lakpr
Fri Apr 02, 2021 4:30 pm
Forum: Personal Investments
Topic: American Funds 401K Wife new Job
Replies: 15
Views: 681

Re: American Funds 401K Wife new Job

I understand my trad Ira. I screwed this one up since I never knew about the backdoor Roth. When I switched employer, I rolled the 401K over to Vanguard since they were charging me a 0.20% account management fee. Why not think about rolling over the Vanguard IRA into your current 401k plan? From yo...
by lakpr
Fri Apr 02, 2021 3:47 pm
Forum: Personal Investments
Topic: Medallion Signature Guarantee for 403b Contract Exchange
Replies: 3
Views: 253

Re: Medallion Signature Guarantee for 403b Contract Exchange

Based upon my experience with obtaining Medallion Signature Guarantee a few years earlier ... it goes by the amount of authorization the person attesting to the value. It usually goes in the blocks like $100k, $250k, $500k, $1 million. I had an appointment with my local banker, but after seeing my V...
by lakpr
Fri Apr 02, 2021 3:12 pm
Forum: Personal Investments
Topic: American Funds 401K Wife new Job
Replies: 15
Views: 681

Re: American Funds 401K Wife new Job

American Balanced fund RLBBX is the best of the lot. It's the lowest fees, it follows a 60:40 blend of stocks and bonds, and has held up well to the Vanguard equivalent (Vanguard Life Strategy Moderate Growth Fund). See Portfolio Visualizer link below: https://www.portfoliovisualizer.com/backtest-po...
by lakpr
Fri Apr 02, 2021 12:52 pm
Forum: Personal Investments
Topic: Portfolio advice and exiting taxable positions
Replies: 13
Views: 800

Re: Portfolio advice and exiting taxable positions

I had only CIBCX, CWGCX and DWGAX in mind when I said only $2k in LTCG taxes ... didn't quite notice the NEWFX and CWGFX funds would make the cut off too ... Sorry about that ... Your asset allocation of 60:25:15 is perfectly fine. For no-tax-impact rebalancing purposes, I generally prefer to have b...
by lakpr
Fri Apr 02, 2021 12:14 pm
Forum: Personal Investments
Topic: Portfolio advice and exiting taxable positions
Replies: 13
Views: 800

Re: Portfolio advice and exiting taxable positions

Your end-state spreadsheet looks much more manageable, yes. I would at the bare minimum exit from any fund that's charging more than 0.8% ER per year, in taxable, as a first cut. That is only $2000 approximately in capital gains taxes, and lets you get rid of the atrocious 1+% fees. You may decide t...
by lakpr
Fri Apr 02, 2021 11:23 am
Forum: Personal Investments
Topic: Ready to start a taxable account (I think)
Replies: 3
Views: 394

Re: Ready to start a taxable account (I think)

I would make a couple of suggestions. 1. For tax-loss-harvesting reasons, seeing that you are about to embark on investments in taxable account .... please make sure that you do not have any overlap with the mutual funds that you have in your 401k, IRA and HSA. Given that your 401k, Roth IRA and HSA...
by lakpr
Fri Apr 02, 2021 11:08 am
Forum: Personal Investments
Topic: just getting started
Replies: 5
Views: 444

Re: just getting started

Please consider posting your particulars according to this format: Asking Portfolio Questions It is very difficult to provide advice in isolation, without knowing the extent of your assets, your social security (if any), your expected expenses on an annual basis, your current investments, etc. That ...
by lakpr
Fri Apr 02, 2021 9:58 am
Forum: Personal Investments
Topic: What do to with large stock profit?
Replies: 4
Views: 437

Re: What do to with large stock profit?

BAC is approx 20% of my portfolio Symbol Qty Cost/share Price Day gain ($) Day gain (%) Gain ($) Gain (%) BAC 1,096.95 13.55609 39.49 0 0.00% 28,448.18 191.31% BCS 261.993 22.7795 10.19 0 0.00% -3,298.36 -55.27% BMY 713.536 29.60603 62.93 0 0.00% 23,777.85 112.56% C 347.035 32.02648 73.14 0 0.00% 1...
by lakpr
Fri Apr 02, 2021 9:53 am
Forum: Personal Investments
Topic: Portfolio advice and exiting taxable positions
Replies: 13
Views: 800

Re: Portfolio advice and exiting taxable positions

First principles of Bogleheadism: always invest in broad market indices, not just select slices of it. And definitely not in single stocks. What this means for your taxable portfolio: Keep only FTIHX and SPY. Sell everything else and invest back into these two investments. That *vastly* simplifies y...
by lakpr
Fri Apr 02, 2021 9:17 am
Forum: Personal Investments
Topic: What do to with large stock profit?
Replies: 4
Views: 437

Re: What do to with large stock profit?

Sounds like all (or at least a majority) of those gains are long term, so you would pay long term capital gains tax rate on the gain. Which would be 0%, 15%, 18.8% or 23.8% depending on your specific tax bracket. I do encourage investing the proceeds into a Total Stock Market Index fund depending on...
by lakpr
Fri Apr 02, 2021 9:10 am
Forum: Personal Investments
Topic: Invest in Retirement Accounts or Pay off Student Loans?
Replies: 4
Views: 268

Re: Invest in Retirement Accounts or Pay off Student Loans?

I would come down hard on the side of fully maximizing all tax advantaged options before I would pay off the student loans -- UNLESS the interest rate on the student loans is north of 4%. Given that you are projecting a starting income of $40k, presumably as a single, that places you in the 12% brac...
by lakpr
Fri Apr 02, 2021 8:36 am
Forum: Personal Investments
Topic: Small business owner asset planning. Please help me
Replies: 13
Views: 1092

Re: Small business owner asset planning. Please help me

So, if one has employees, there's no way to establish "tax advantaged space" solo? Correct. The underlying idea is equitability, I think, where the tax related benefits are not exclusive to the upper income earners in a company. If you want tax advantaged space for yourself, you must also...
by lakpr
Fri Apr 02, 2021 8:22 am
Forum: Personal Investments
Topic: Small business owner asset planning. Please help me
Replies: 13
Views: 1092

Re: Small business owner asset planning. Please help me

@Sandtrap,

OP indicated that his business has employees, so the Solo 401(k) is out ...
by lakpr
Fri Apr 02, 2021 8:10 am
Forum: Personal Investments
Topic: Small business owner asset planning. Please help me
Replies: 13
Views: 1092

Re: Small business owner asset planning. Please help me

I think you should set up a 401k plan for yourself and your employees, and make it a Safe Harbor 401k plan (which is to say you will contribute 3% of the employees salary to the 401k plan regardless of whether they contribute themselves). The expenses of such plan would be around $3500 per year, acc...
by lakpr
Fri Apr 02, 2021 8:03 am
Forum: Personal Investments
Topic: Please Critique my Portfolio?
Replies: 14
Views: 1353

Re: Please Critique my Portfolio?

1. AUEIX seems to have 0.4% expense ratio, and historically it has done no better than a plain S&P 500 index fund; why not exchange it into a Total Stock Market index fund? https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear...
by lakpr
Thu Apr 01, 2021 4:27 pm
Forum: Personal Investments
Topic: 401k options - Approximating Total Stock Market
Replies: 5
Views: 380

Re: 401k options - Approximating Total Stock Market

Your inclination is right, just invest in the S&P 500 index fund and be done with it. Why invest in two funds when you can get same risk and same return as investing in a single fund?
by lakpr
Thu Apr 01, 2021 4:24 pm
Forum: Personal Investments
Topic: 401k doesn't pay dividends
Replies: 5
Views: 482

Re: 401k doesn't pay dividends

Sounds like the investments in your 401k plan are Collective Investment Trusts, or CITs. CITs are just different share classes of the same underlying investments.

No, nothing nefarious going on, you are in good hands. Nothing to be concerned about.
by lakpr
Thu Apr 01, 2021 3:44 pm
Forum: Personal Investments
Topic: Start Pre-tax or stick with Roth 1 year from retirement?
Replies: 7
Views: 369

Re: Start Pre-tax or stick with Roth 1 year from retirement?

If your Traditional IRA contribution is deductible (after your maxing out the 403b/457 of course), that tells me right there that you will be in the 12% Federal marginal tax bracket. For tax brackets above 12%, the traditional IRA contributions are non-deductible (except to a limited extent in the ...
by lakpr
Thu Apr 01, 2021 1:19 pm
Forum: Personal Investments
Topic: How do I know if i am saving enough?
Replies: 24
Views: 3927

Re: How do I know if i am saving enough?

OP, A) What is your current annual expense? 55K B) What is your current portfolio size? ??? C) What is your current annual savings including the employer match? Please provide the numbers. Please add up the numbers. You need to know the answers. KlangFool KF, OP did include that info. $580k today, ...