Bogleheads.org

placeholder

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...

placeholder

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.

placeholder

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.

placeholder

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.

placeholder

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

viewtopic.php?f=10&t=196884

placeholder

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...

placeholder

There are many times during the history of the modern stock market where some point was both a record and below any subsequent crash.

placeholder

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...

placeholder

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...

placeholder

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.

placeholder

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.

placeholder

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.

placeholder

Another option would be a target fund like Vanguard Target Retirement 2060 Fund (VTTSX) which has a $1000 minimum.

placeholder

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.

placeholder

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.

placeholder

If you have a stable value fund in a 401k or similar plan that's something to investigate.

placeholder

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...

placeholder

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 ...

placeholder

Why Vanguard in particular?

placeholder

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.

placeholder

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?

placeholder

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.

placeholder

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?).

placeholder

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.

placeholder

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...

placeholder

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...

placeholder

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?

placeholder

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.

placeholder

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...

placeholder

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.

placeholder

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...

placeholder

I thought a lot of the benefits of real estate investing had to do with tax deductions and such.

placeholder

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...

placeholder

How can there be much benefit to the simplicity of eliminating ONE fund?

placeholder

I don't think so and I believe any transfer out of Schwab will have a partial transfer fee (not closing fee).

placeholder

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?

placeholder

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.

placeholder

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.

placeholder

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.

placeholder

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.

placeholder

I'm pretty sure I asked them about the same situation and withdrawal would not have a fee so again look at indirect rollover.

placeholder

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.

placeholder

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.

placeholder

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.

placeholder

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.

placeholder

You'd be better not starting separate threads for every aspect of your investing.

placeholder

Are you actually putting money into traditional iras?

placeholder

These day ACATS transfers are pretty fast and you can usually do it all online.

placeholder

Thesaints just makes up definitions for existing terms and most of them make little or no sense.

placeholder

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.

Search found 4533 matches