Search found 4533 matches

by placeholder
Thu Apr 22, 2021 12:46 am
Forum: Personal Investments
Topic: Solo 401k Mega Backdoor Roth
Replies: 9
Views: 620

Re: Solo 401k Mega Backdoor Roth

I gather that you have some existing after tax contributions in TSP (is that right?) but even if you roll that into a solo plan I don't think you can convert the after tax to roth there so I would do a rollover that splits the pretax and after tax with the after tax going to a roth ira and the preta...
by placeholder
Thu Apr 22, 2021 12:25 am
Forum: Personal Investments
Topic: 2001 Series I Savings Bonds - potential tax issue at maturity
Replies: 19
Views: 1709

Re: 2001 Series I Savings Bonds - potential tax issue at maturity

The law says you are supposed to pay the tax at final maturity but as far as I know there's no requirement to cash them.
by placeholder
Wed Apr 21, 2021 7:17 pm
Forum: Personal Investments
Topic: 2001 Series I Savings Bonds - potential tax issue at maturity
Replies: 19
Views: 1709

Re: 2001 Series I Savings Bonds - potential tax issue at maturity

djheini wrote: Wed Apr 21, 2021 11:14 am You should receive the 1099-INT when you cash in the bonds (though I'm not sure who issues it for paper bonds).
The financial institution that cashes them which is usually a bank.
by placeholder
Wed Apr 21, 2021 7:14 pm
Forum: Personal Investments
Topic: Transfer AfterTax TIAA Account to Roth? Taxable?
Replies: 4
Views: 305

Re: Transfer AfterTax TIAA Account to Roth? Taxable?

Many custodians allow a split rollover so that the taxable earnings are in one rollover and the after tax in another and then you can send the pretax to a tira and the after tax to a roth.
by placeholder
Wed Apr 21, 2021 7:09 pm
Forum: Personal Investments
Topic: Moving money short-term to Ally Invest: What to do/consider?
Replies: 9
Views: 1000

Re: Moving money to Ally Invest to chase the bonus: worth it, and what to do/consider?

In general I recommend that you post bonus questions to the big thread on the topic:

viewtopic.php?f=10&t=196884
by placeholder
Wed Apr 21, 2021 7:07 pm
Forum: Personal Investments
Topic: Moving money short-term to Ally Invest: What to do/consider?
Replies: 9
Views: 1000

Re: Moving money to Ally Invest to chase the bonus: worth it, and what to do/consider?

I have mix feelings on bonuses. Often there is some gotcha or you have to call and complain about not getting one. I have only ever had that problem once in all the years I have been doing bonuses and that was at Ally because they have a strict "new customer" requirement and I had once ha...
by placeholder
Wed Apr 21, 2021 7:04 pm
Forum: Personal Investments
Topic: Need help with how to invest bonus
Replies: 15
Views: 955

Re: Need help with how to invest bonus

There are many times during the history of the modern stock market where some point was both a record and below any subsequent crash.
by placeholder
Wed Apr 21, 2021 12:07 am
Forum: Personal Investments
Topic: Payoff Mortgage or Not?
Replies: 19
Views: 1602

Re: Payoff Mortgage or Not?

I was trying to get the OP to consider comparing the mortgage payoff to a bond fund, not to a total portfolio or a stock portfolio because the risks/returns of a mortgage are far more similar to a bond fund than stocks. That was not the question asked it was about investing and bonds are not really...
by placeholder
Tue Apr 20, 2021 8:07 pm
Forum: Personal Investments
Topic: Payoff Mortgage or Not?
Replies: 19
Views: 1602

Re: Payoff Mortgage or Not?

The answer is "maybe". You're comparing a guaranteed return with no risk (mortgage payoff) with a risky return that assumes market average returns over some period of time. What if your risky investment tanks somewhere along the way? But that's always true when comparing risky and risk fr...
by placeholder
Tue Apr 20, 2021 8:03 pm
Forum: Personal Investments
Topic: Payoff Mortgage or Not?
Replies: 19
Views: 1602

Re: Payoff Mortgage or Not?

I never really experienced the "peace of mind" thing as the mortgage was always just another bill to pay each month and I had no more anxiety than I did with the electric bill.
by placeholder
Mon Apr 19, 2021 7:13 pm
Forum: Personal Investments
Topic: Payoff Mortgage or Not?
Replies: 19
Views: 1602

Re: Payoff Mortgage or Not?

I've been a big fan of the cheap and safe leverage that a mortgage provides which has been very good to me over the years as I built my portfolio.
by placeholder
Thu Apr 15, 2021 12:47 am
Forum: Personal Investments
Topic: Son (20) opening a Roth—investment options?
Replies: 21
Views: 1219

Re: Son (20) opening a Roth—investment options?

JBTX wrote: Wed Apr 14, 2021 11:17 pm Do etfs automatically reinvest, with no fees? I honestly don't know.
Generally although that might not be the default.
by placeholder
Wed Apr 14, 2021 9:32 pm
Forum: Personal Investments
Topic: Son (20) opening a Roth—investment options?
Replies: 21
Views: 1219

Re: Son (20) opening a Roth—investment options?

Another option would be a target fund like Vanguard Target Retirement 2060 Fund (VTTSX) which has a $1000 minimum.
by placeholder
Wed Apr 14, 2021 6:57 pm
Forum: Personal Investments
Topic: HELP! Mega Backdoor Roth
Replies: 10
Views: 1223

Re: HELP! Mega Backdoor Roth

You can also see if the 401k will take rollovers from traditional iras because then you could roll the earnings back in which is what I did with mega when I was at megacorp.
by placeholder
Wed Apr 14, 2021 6:51 pm
Forum: Personal Investments
Topic: Is there any basis step up in a 1035 annuity exchange?
Replies: 10
Views: 484

Re: Is there any basis step up in a 1035 annuity exchange?

Yeah it would be pretty nifty to avoid your tax liability by making a tax free exchange but the tax laws aren't going to allow that.
by placeholder
Wed Apr 14, 2021 1:36 pm
Forum: Personal Investments
Topic: Alternative to Total Bond?
Replies: 46
Views: 4598

Re: Alternative to Total Bond?

If you have a stable value fund in a 401k or similar plan that's something to investigate.
by placeholder
Tue Apr 13, 2021 7:08 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 6084

Re: Simplicity over Small Cap Value

It that really “increased diversification” or is it de-worse-ification? The S&P 500 and Total Market holds each company at its market weight. Tilting to small (or any other sector or style) reducing the allocation to the remaining companies. A different perspective may say one is reducing diver...
by placeholder
Mon Apr 12, 2021 2:04 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 6084

Re: Simplicity over Small Cap Value

There is no guarantee that you will earn "extra" if you do a 25% "tilt" to Small Cap Value. In my opinion, you are likely to earn less. Based on what and if it's so likely why don't you recommend tilting AWAY from small value? I think he means after costs, taxes, and behavioral ...
by placeholder
Sun Apr 11, 2021 6:21 pm
Forum: Personal Investments
Topic: transfer betterment to vanguard?
Replies: 11
Views: 1010

Re: transfer betterment to vanguard?

Why Vanguard in particular?
by placeholder
Sun Apr 11, 2021 5:13 pm
Forum: Personal Investments
Topic: Taxes and rolling over pension lump sum
Replies: 18
Views: 1203

Re: Taxes and rolling over pension lump sum

I think some people forgot about the backdoor roth part of the equation because doing that with six figures of pretax would complicate things so I'd work on avoiding getting that into traditional ira if possible.
by placeholder
Sun Apr 11, 2021 12:45 am
Forum: Personal Finance (Not Investing)
Topic: Can I have a employer Traditional 401K and a Roth IRA simultaneously and contribute to both in the same year
Replies: 17
Views: 1601

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

investmax wrote: Sat Apr 10, 2021 10:24 pm 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?
by placeholder
Sun Apr 11, 2021 12:40 am
Forum: Personal Investments
Topic: Life Savings in Cash--Need Advice
Replies: 27
Views: 4335

Re: Life Savings in Cash--Need Advice

Bandit329 wrote: Sat Apr 10, 2021 10:12 am It's hard to see putting money into a market after it has gone up 80% in 12 months.
Yet most of us here aren't selling our stock funds to wait for some decline that might never come.
by placeholder
Sun Apr 11, 2021 12:02 am
Forum: Personal Investments
Topic: Taxes and rolling over pension lump sum
Replies: 18
Views: 1203

Re: Taxes and rolling over pension lump sum

Planner01 wrote: Sat Apr 10, 2021 7:32 pm I understand now! I’d have to play with the numbers to see how much of it can be converted without pushing us to a new tax bracket.
That's going to interfere with backdoor roth each year plus I would be reluctant to convert at what might be your highest tax rate (what is it?).
by placeholder
Sat Apr 10, 2021 11:59 pm
Forum: Personal Investments
Topic: Taxes and rolling over pension lump sum
Replies: 18
Views: 1203

Re: Taxes and rolling over pension lump sum

Planner01 wrote: Sat Apr 10, 2021 7:31 pm You can move pension funds that his old employer contributed to (this is separate from the 401k) to a new 401k? I thought you could only do that 401k to 401k.
It's going to depend on the plan rules but they are allowed to take in iras and probably pension rollovers directly.
by placeholder
Sat Apr 10, 2021 7:02 pm
Forum: Personal Investments
Topic: Taxes and rolling over pension lump sum
Replies: 18
Views: 1203

Re: Taxes and rolling over pension lump sum

If he leaves it there it will grow at a 4.5% rate and the annuity is of a monthly payment. We can do much better by investing it ourselves and having the ability to pass down that money to our heir. In the annuity the paymenfs stop after he passes it to me. You certainly can't do better for similar...
by placeholder
Sat Apr 10, 2021 6:58 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 17
Views: 1242

Re: Is it possible to open and fund a Roth IRA for my kid

One hypothetical question about earned income though. What about people who have no "income" but live off inheritance or something like that. Can they have a Roth IRA and invest in that? Like trust fund kids we keep hearing about :-D No like in my case when I retired I get a monthly pensi...
by placeholder
Sat Apr 10, 2021 6:50 pm
Forum: Personal Investments
Topic: Taxes and rolling over pension lump sum
Replies: 18
Views: 1203

Re: Taxes and rolling over pension lump sum

Is he required to take or can he leave it there and get interest credits or does he have a 401k or similar plan that can take the rollover?
by placeholder
Sat Apr 10, 2021 6:30 pm
Forum: Personal Investments
Topic: AA for someone 2 years from retirement
Replies: 47
Views: 4821

Re: AA for someone 2 years from retirement

I had moved to 60/40 years before retirement and I didn't make any changes when I did but I have a pension that right now covers my spending so I didn't need to worry about the near term with the portfolio.
by placeholder
Sat Apr 10, 2021 12:28 am
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 6084

Re: Simplicity over Small Cap Value

People who have anxiety will suffer regardless of number of allocations so I reject these so-called benefit for the normal investor and suggest that it won't matter for the anxious fringe. This begs the question. If you're not open to any answers, I don't understand why you asked the question in th...
by placeholder
Sat Apr 10, 2021 12:27 am
Forum: Personal Investments
Topic: Roll over IRA adn Self Directed IRA
Replies: 7
Views: 388

Re: Roll over IRA adn Self Directed IRA

Notice that was for indirect rollovers which is money have comes out of an ira in cash to you and doesn't apply to custodian to custodian transfers.
by placeholder
Fri Apr 09, 2021 7:48 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 6084

Re: Simplicity over Small Cap Value

It depends on the individual. The OP tends towards anxiety and overthinking , which is borne out by the flurry of posts asking for portfolio advice. In this case, getting started at 18 with an extremely simple one-fund portfolio hopefully establishes positive behaviors, while adding a second fund o...
by placeholder
Fri Apr 09, 2021 7:46 pm
Forum: Personal Investments
Topic: Roll over IRA adn Self Directed IRA
Replies: 7
Views: 388

Re: Roll over IRA adn Self Directed IRA

I thought a lot of the benefits of real estate investing had to do with tax deductions and such.
by placeholder
Fri Apr 09, 2021 7:41 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 6084

Re: Simplicity over Small Cap Value

How can there be much benefit to the simplicity of eliminating ONE fund? A lot. Are you going to be anxious about this under or over performing the market. Not to mention the annual rebalancing and accounting. Which is admittedly not a big deal if you’re committed to it, but unnecessary if you’re n...
by placeholder
Fri Apr 09, 2021 7:10 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 6084

Re: Simplicity over Small Cap Value

How can there be much benefit to the simplicity of eliminating ONE fund?
by placeholder
Fri Apr 09, 2021 4:44 pm
Forum: Personal Investments
Topic: Etrade cover transfer fee?
Replies: 6
Views: 553

Re: Etrade cover transfer fee?

I don't think so and I believe any transfer out of Schwab will have a partial transfer fee (not closing fee).
by placeholder
Fri Apr 09, 2021 4:41 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 6084

Re: Simplicity over Small Cap Value

Taylor Larimore wrote: Fri Apr 09, 2021 12:59 pm
There is no guarantee that you will earn "extra" if you do a 25% "tilt" to Small Cap Value. In my opinion, you are likely to earn less.
Based on what and if it's so likely why don't you recommend tilting AWAY from small value?
by placeholder
Fri Apr 09, 2021 12:37 am
Forum: Personal Investments
Topic: Roth IRA transfer basis
Replies: 4
Views: 608

Re: Roth IRA transfer basis

You and the irs receive a tax form 5498 each year that you make an ira contribution so they know and if you don't have those the old custodian might be able to provide copies.
by placeholder
Fri Apr 09, 2021 12:33 am
Forum: Personal Investments
Topic: Please Help: After tax - non Roth 401k?
Replies: 10
Views: 934

Re: Please Help: After tax - non Roth 401k?

You can roll the smaller check right into a roth ira with no tax due and the taxable portion into a traditional assuming you don't want to convert that to roth and you have what is called the mega backdoor roth.
by placeholder
Fri Apr 09, 2021 12:30 am
Forum: Personal Investments
Topic: Delay doing Roth conversions in crazy high market?
Replies: 8
Views: 1186

Re: Delay doing Roth conversions in crazy high market?

There are many points in any market that have been both a record high and a level where that market has never been that low again.
by placeholder
Fri Apr 09, 2021 12:28 am
Forum: Personal Investments
Topic: Help! Vanguard lost my money in a 403b trustee transfer
Replies: 9
Views: 1660

Re: Help! Vanguard lost my money in a 403b trustee transfer

Megacorp uses checks for rollovers sent to the address of record as a security measure because convenient for you can also be convenient for hackers.
by placeholder
Thu Apr 08, 2021 10:47 pm
Forum: Personal Investments
Topic: Etrade cover transfer fee?
Replies: 6
Views: 553

Re: Etrade cover transfer fee?

I'm pretty sure I asked them about the same situation and withdrawal would not have a fee so again look at indirect rollover.
by placeholder
Thu Apr 08, 2021 6:55 pm
Forum: Personal Investments
Topic: Etrade cover transfer fee?
Replies: 6
Views: 553

Re: Etrade cover transfer fee?

I don't think they charge a fee to withdraw cash from an ira (check that) so you could just do an indirect rollover to the new account understanding that you can only do that once in a 12 month period.
by placeholder
Thu Apr 08, 2021 6:43 pm
Forum: Personal Investments
Topic: Backdoor Roth question
Replies: 4
Views: 355

Re: Backdoor Roth question

People get confused about backdoor roth because they think the roth contributions rules apply but they don't and for example there is no limit on how much of a traditional ira that can be converted at any time.
by placeholder
Thu Apr 08, 2021 12:54 am
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 6084

Re: Simplicity over Small Cap Value

I have been tilted to small and value since I formulated my portfolio in 2007 and I don't find it to be complicated at all.
by placeholder
Wed Apr 07, 2021 8:13 pm
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1616

Re: Backdoor Roth in Vanguard question

There's nothing wrong with the process (BTW there's no reason to wait until the next year) but you might have a problem with your tax forms so you need to get all of the form 8606 copies you have filed and tell us what was on each.
by placeholder
Wed Apr 07, 2021 12:37 am
Forum: Personal Investments
Topic: Should I use a Roth 401k instead of a regular 401k?
Replies: 23
Views: 2182

Re: Should I use a Roth 401k instead of a regular 401k?

You'd be better not starting separate threads for every aspect of your investing.
by placeholder
Wed Apr 07, 2021 12:18 am
Forum: Personal Investments
Topic: How should I invest cash just sitting in the bank?
Replies: 27
Views: 4109

Re: How should I invest cash just sitting in the bank?

Are you actually putting money into traditional iras?
by placeholder
Sun Apr 04, 2021 11:43 pm
Forum: Personal Investments
Topic: Help transferring Funds from Vanguard to Fidelity in a Roth IRA
Replies: 17
Views: 1153

Re: Help transferring Funds from Vanguard to Fidelity in a Roth IRA

These day ACATS transfers are pretty fast and you can usually do it all online.
by placeholder
Sun Apr 04, 2021 6:55 pm
Forum: Personal Investments
Topic: Large sum -- to DCA or not to DCA?
Replies: 120
Views: 9501

Re: Large sum -- to DCA or not to DCA?

Thesaints just makes up definitions for existing terms and most of them make little or no sense.
by placeholder
Sun Apr 04, 2021 6:53 pm
Forum: Personal Investments
Topic: Large sum -- to DCA or not to DCA?
Replies: 120
Views: 9501

Re: Large sum -- to DCA or not to DCA?

Thesaints wrote: Sat Apr 03, 2021 9:38 pm It is "volatility of returns", not "volatility of assets". The former is much more important than the latter.
That's false and dca does NOT do anything to prevent that.