Search found 1357 matches

by ryman554
Mon Apr 05, 2021 8:51 am
Forum: Personal Investments
Topic: RPM Suggests Lower Roth Conversion is Better?
Replies: 10
Views: 1671

Re: RPM Suggests Lower Roth Conversion is Better?

Your criteria is not useful since a dollar in Roth is worth more than a dollar in taxable. And both kinds of dollars are worth more than a dollar in tax-deferred (since the taxes haven’t been paid yet) and each dollar has different spending power. What you are saying is generally true. But aren't t...
by ryman554
Fri Apr 02, 2021 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Why do I owe so much in Taxes?
Replies: 55
Views: 6738

Re: Why do I owe so much in Taxes?

I'm sorry I didn't know that bonuses were taxed differently-- I would have used a different term, as it's not actually a bonus, it is payment for additional work and is included in regular income, so I don't think that is the explanation. Bonuses are *not* taxed differently. They are *withheld* dif...
by ryman554
Wed Mar 31, 2021 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Payoff New Mortgage Aggressively or Invest?
Replies: 37
Views: 3704

Re: Payoff New Mortgage Aggressively or Invest?

You are already missing out on $100k in interest write off because you have so much home equity Not sure I fully follow your point. I really only put down slightly more than I had to to not have PMI. Federal taxes allow you to deduct mortgage interest from up to $750k worth of mortgage principal. Y...
by ryman554
Wed Mar 31, 2021 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Payoff New Mortgage Aggressively or Invest?
Replies: 37
Views: 3704

Re: Payoff New Mortgage Aggressively or Invest?

You are already missing out on $100k in interest write off because you have so much home equity Not sure I fully follow your point. I really only put down slightly more than I had to to not have PMI. Federal taxes allow you to deduct mortgage interest from up to $750k worth of mortgage principal. Y...
by ryman554
Mon Mar 22, 2021 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Can I count on Social Security Income?
Replies: 4
Views: 866

Re: Can I count on Social Security Income?

We are not allowed to discuss potential changes to laws on this forum

So, can you live off of 75% of your projected benefits? I would be planning for that.
by ryman554
Fri Mar 19, 2021 10:24 am
Forum: Personal Investments
Topic: Inherited IRA - Factors to Consider When Withdrawing
Replies: 9
Views: 1154

Re: Inherited IRA - Factors to Consider When Withdrawing

One idea: make regular withdrawals with the tax withheld, and then contribute an equal net amount to a Roth IRA. You can't do a direct transfer, but there's nothing to stop you from moving withdrawal money to your checking account, and then making a Roth contribution from your checking account. You...
by ryman554
Fri Mar 19, 2021 10:16 am
Forum: Personal Investments
Topic: How much do you weigh your homes value in your retirement portfolio?
Replies: 106
Views: 8331

Re: How much do you weigh your homes value in your retirement portfolio?

At this point I don't. But if I did, and I had reasonable certainty that I was going to sell it at some point, I would account for it by calculating the NPV of the net proceeds from the sale at a guessed year in the future when the sale would occur. Similarly, if that were part of a downsizing into...
by ryman554
Wed Mar 10, 2021 10:03 am
Forum: Investing - Theory, News & General
Topic: Concerned about Bond Durations and low interest rates
Replies: 12
Views: 1027

Re: Concerned about Bond Durations and low interest rates

We part company at the reason for bonds, cash and cash equivalents. We use them for safety and not for returns. We use equities for the risk and return part of our portfolio. An honest question. I hear this all the time, but what does that really mean? What *is* safety? In the accumulation phase, t...
by ryman554
Mon Mar 08, 2021 10:12 am
Forum: Personal Investments
Topic: Mega Roth w/ high ER vs Taxable Account
Replies: 10
Views: 671

Re: Mega Roth w/ high ER vs Taxable Account

Is everybody doing the calculations right? Post $19.5k, it's *after* tax, which is not the same as a roth. Unless the OP can confirm that the after-tax $$ are converted (in plan) to a roth sub-account, then the taxable account is the way to go. Given they don't seem to be able to roll it out of the...
by ryman554
Fri Mar 05, 2021 10:35 am
Forum: Personal Investments
Topic: Mega Roth w/ high ER vs Taxable Account
Replies: 10
Views: 671

Re: Mega Roth w/ high ER vs Taxable Account

Is everybody doing the calculations right? Post $19.5k, it's *after* tax, which is not the same as a roth. Unless the OP can confirm that the after-tax $$ are converted (in plan) to a roth sub-account, then the taxable account is the way to go. Given they don't seem to be able to roll it out of the ...
by ryman554
Tue Mar 02, 2021 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Tax question - unnecessary Backdoor Roth IRA
Replies: 8
Views: 622

Re: Tax question - unnecessary Backdoor Roth IRA

There is no (minimal) tax ramification for doing a direct vs. backdoor roth. The (minimal) ramifications are: 1. You don't pay tax on the gain in the conversion, which for most folks should be $0 unless you waited to convert. 2. The directly contributed amount is on a different withdrawal schedule -...
by ryman554
Thu Feb 25, 2021 1:35 pm
Forum: Personal Investments
Topic: Leverage - Is this a Reasonable Boglehead Way to Use It?
Replies: 44
Views: 3266

Re: Leverage - Is this a Reasonable Boglehead Way to Use It?

The upshot is that you are worried about breaking your IPS because you all of a sudden have extra tax-advantaged space. Forget about what your IPS actually says about 100% stocks. Why did you do it? Likely because it has the best returns, and you are making a ton of money. Go with the spirit of wha...
by ryman554
Wed Feb 24, 2021 8:07 am
Forum: Personal Investments
Topic: Leverage - Is this a Reasonable Boglehead Way to Use It?
Replies: 44
Views: 3266

Re: Leverage - Is this a Reasonable Boglehead Way to Use It?

The upshot is that you are worried about breaking your IPS because you all of a sudden have extra tax-advantaged space. Forget about what your IPS actually says about 100% stocks. Why did you do it? Likely because it has the best returns, and you are making a ton of money. Go with the spirit of what...
by ryman554
Tue Feb 23, 2021 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Large Tax Bill - Use Security Based Lending
Replies: 7
Views: 540

Re: Large Tax Bill - Use Security Based Lending

I have no idea what you are suggesting. However, if you had a windfall from the sales of business or something... 1. You should have been paying quarterly taxes unless, I guess, you have a safe harbor from last year. 2. You should have stuck your "tax money" estimates in a savings account ...
by ryman554
Mon Feb 15, 2021 10:19 pm
Forum: Personal Investments
Topic: Got my 401(k) admin to consider adding more funds!
Replies: 3
Views: 369

Got my 401(k) admin to consider adding more funds!

Since I like the three fund approach, I'm trying to get some low cost funds added. There are a lot of crazy expensive active funds there, but I don't think I can replace, just add to. All I have is a schwab S&P fund which isn't too bad, which all my stuff goes to. There are also target date fund...
by ryman554
Tue Feb 09, 2021 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Amortization Based Withdrawal (ABW)
Replies: 709
Views: 46475

Re: Using the Time Value of Money Formula to Determine Withdrawals: Year 2000 Retiree Example

A couple of other things I would add to the list above is you have to predict future tax rates/laws (and their impact on you) and you have to predict a potential inheritance (if applicable to you). We always say don't count on an inheritance, which is good advice, but it could potentially leave you...
by ryman554
Wed Feb 03, 2021 10:36 am
Forum: Personal Finance (Not Investing)
Topic: 1099-Misc Prize Winnings and tax filing question
Replies: 6
Views: 650

Re: 1099-Misc Prize Winnings and tax filing question

We got lucky in 2020 and wife ended up winning a prize worth approx $38k. We received a 1099-MISC for it as well. My questions stem from how best to file our tax returns for last year. Also, off-topic, but make sure that your prize is really worth $38k. If you went on the price is right and won a b...
by ryman554
Wed Feb 03, 2021 10:32 am
Forum: Investing - Theory, News & General
Topic: Does the 4% rule take tax, fees etc into account?
Replies: 362
Views: 12836

Re: Does the 4% rule take tax, fees etc into account?

Why are you looking at historical data? NONE of the cycles there had negative real expected bond returns. So none of them matters today for determining SWR. It's like looking at how long your great great grand father took to come to New York from London and planning your travels today based on that...
by ryman554
Wed Feb 03, 2021 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Stay in job or Lose $420k?
Replies: 37
Views: 4721

Re: Stay in job or Lose $420k?

All: It's $280k for just staying until end of 2021. 100% certain. It's another $140k if the business goals are met. Not so certain. Still, $280 is a big chunk-o-change, so let's not throw that out. Others have said the right thing: 1. Perform well at work and be professsional 2. Dust off your resume...
by ryman554
Tue Feb 02, 2021 9:44 am
Forum: Investing - Theory, News & General
Topic: Does the 4% rule take tax, fees etc into account?
Replies: 362
Views: 12836

Re: Does the 4% rule take tax, fees etc into account?

No, the 4% rule is nothing more than a "Rule of Thumb" stating you check out with the same you checked in with if you have a 60/40 asset allocation with a withdrawal rate of 4% from that account. It does no such thing. We check in with Zero! Unless your born wealthy of course! :happy I ce...
by ryman554
Mon Feb 01, 2021 10:42 am
Forum: Investing - Theory, News & General
Topic: Does the 4% rule take tax, fees etc into account?
Replies: 362
Views: 12836

Re: Does the 4% rule take tax, fees etc into account?

No, the 4% rule is nothing more than a "Rule of Thumb" stating you check out with the same you checked in with if you have a 60/40 asset allocation with a withdrawal rate of 4% from that account. It does no such thing. Instead of saying you have the same amount (either in nominal nor real...
by ryman554
Mon Feb 01, 2021 10:36 am
Forum: Investing - Theory, News & General
Topic: Does the 4% rule take tax, fees etc into account?
Replies: 362
Views: 12836

Re: Does the 4% rule take tax, fees etc into account?

We need to replace the 4% rule with the 3% rule, because 4% is much more likely to fail over the next 30 years than it used to be. I hate it when people say this without context. But at least you didn't go to 2%. If you are meaning that we are now facing the worst 30 years in recorded(*) history, t...
by ryman554
Mon Jan 25, 2021 10:45 am
Forum: Personal Investments
Topic: Roth 401k vs Traditional 401k plus taxable (need a critique of my calculations)
Replies: 21
Views: 1068

Re: Roth 401k vs Traditional 401k plus taxable (need a critique of my calculations)

Remember, you're filling in from the bottom, so not all of your withdrawals (nor even most of it!) are at 22%.... If that is the expected marginal rate, even if no further traditional contributions are made, then that is the withdrawal marginal rate that should be used for this year's decision. See...
by ryman554
Sun Jan 24, 2021 11:45 pm
Forum: Personal Investments
Topic: Roth 401k vs Traditional 401k plus taxable (need a critique of my calculations)
Replies: 21
Views: 1068

Re: Roth 401k vs Traditional 401k plus taxable (need a critique of my calculations)

- marginal tax bracket at retirement - 22% an_asker, I would challenge this assumption first. Please explain how could this be possible? Where does the retirement income of more than 100K come from? Pension? KlangFool Retirement income will come via RMD plus Social Security plus interest/dividends ...
by ryman554
Mon Jan 18, 2021 11:00 am
Forum: Personal Investments
Topic: Another mortgage payoff scenario
Replies: 79
Views: 4033

Re: Another mortgage payoff scenario

I wouldn't pay it off. I've seen others make the argument before that they don't want to pay it down, but only pay it off. That doesn't make any sense to me. Cash flow. Paying down (without recharacterizing) does not affect immediate cash flow, but does reduce liquidity. Paying off removes the mort...
by ryman554
Thu Jan 07, 2021 10:30 am
Forum: Investing - Theory, News & General
Topic: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios
Replies: 97
Views: 6354

Re: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios

Here is what I am going to do. I am going to go to PortfolioVisualizer. I am only going to look at the prebuilt portfolios common to PortfolioVisualizer and this list. I am going to look at the volatility of the portfolio as measured by standard deviation, over whatever time period PortfolioVisuali...
by ryman554
Mon Jan 04, 2021 11:50 am
Forum: Personal Finance (Not Investing)
Topic: What is the right saving strategy to buy a home in HCOL area?
Replies: 31
Views: 2586

Re: What is the right saving strategy to buy a home in HCOL area?

You make 500k a year. Usually the folks that ask that question are either making way less or buying way more home and they will never catch up putting 25-50 k per annum toward future house. For you, easy. Save 300k over the next 12 months and stick it in a savings account (or equivalent). Money you...
by ryman554
Sun Jan 03, 2021 10:11 am
Forum: Personal Finance (Not Investing)
Topic: What is the right saving strategy to buy a home in HCOL area?
Replies: 31
Views: 2586

Re: What is the right saving strategy to buy a home in HCOL area?

You make 500k a year. Usually the folks that ask that question are either making way less or buying way more home and they will never catch up putting 25-50 k per annum toward future house. For you, easy. Save 300k over the next 12 months and stick it in a savings account (or equivalent). Money you ...
by ryman554
Sun Jan 03, 2021 10:01 am
Forum: Personal Investments
Topic: Back Door R-IRA and 5 year rule(s) management
Replies: 8
Views: 637

Re: Back Door R-IRA and 5 year rule(s) management

You're not listening to what the above posters are telling you. You don't have to keep track of the gains because they have no tax ramifications. You withdraw in this order: 1. Anything you directly contributed. You pay penalty if the Roth (meaning total universe of roth accounts you own) is open le...
by ryman554
Thu Dec 17, 2020 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 10200
Views: 731999

Re: Refinance Mega Thread

Another common issue is that you can’t get a waiver for a home value above $1m. Depending on your loan amount, it may be advantageous to list your home value at $999,999 in order to get an appraisal waiver even though your LTV would be higher. It is possible that LenderFi is doing that but Better i...
by ryman554
Wed Dec 16, 2020 10:20 am
Forum: Personal Investments
Topic: Bigger is better! 10 years average returns of total portfolio.
Replies: 55
Views: 7003

Re: Bigger is better! 10 years average returns of total portfolio.

Okay! Trying to start new tradition. My average 10 year return is 11%. Hopefully we going from here. Can compare with other’s ? Maybe we had similar posts? How do you calculate this number ? How did you calculate time weighted annual returns given that you are also simultaneously putting new money ...
by ryman554
Mon Nov 23, 2020 10:16 am
Forum: Investing - Theory, News & General
Topic: Share proof that no one knows nothing
Replies: 68
Views: 7383

Re: Share proof that no one knows nothing

2020 isn't finished yet, but Larry Swedroe's list of sure things is always entertaining. 2020: https://www.advisorperspectives.com/articles/2020/10/09/third-quarter-review-of-2020-sure-things 2019: https://www.advisorperspectives.com/articles/2020/02/11/final-review-of-2019s-sure-things Larry has b...
by ryman554
Mon Nov 23, 2020 10:07 am
Forum: Personal Investments
Topic: Critique my inheritance strategy
Replies: 17
Views: 1736

Re: Critique my inheritance strategy

Klang, Can you explain your theory on contributing only to traditional rather than splitting? You are making 50k a year. You are at or near the 22% tax bracket being single. Well under it as a married person. Contributing 25% = 12.5k a year to your 401(k) + maxing out a roth is GREAT!!!! Please tak...
by ryman554
Wed Nov 18, 2020 12:10 pm
Forum: Personal Investments
Topic: Gain harvesting or Roth conversion this year?
Replies: 6
Views: 344

Re: Gain harvesting or Roth conversion this year?

It does look like you are well aware that both the 0% capital gains tax rate, and the 12% tax bracket for Roth conversions, compete for the same space. To the extent you choose one, you exclude the other. IF you have heirs, and you intend to pass money to them, I would suggest choosing Roth convers...
by ryman554
Tue Nov 17, 2020 12:20 pm
Forum: Investing - Theory, News & General
Topic: Is tax drag really a bad thing?
Replies: 14
Views: 1358

Re: Is tax drag really a bad thing?

It is literally extra $s to put towards paying off mortgage sooner or car fund, etc. Plan is to put extra $s in here each month and lump sum a principle payment at the end of the year. Why not simply pay extra every month? If the OP is going to pay at the end of every year, I tend to agree, why not...
by ryman554
Fri Nov 13, 2020 6:06 pm
Forum: Personal Investments
Topic: First Post: Recent Cash-Out
Replies: 15
Views: 1779

Re: First Post: Recent Cash-Out

If you truly don't need it for 20 years, then: Take the entirety of it and stick it in a total market fund and forget about it for 20 years. It won't matter if there is a correction coming up, it's "small" in the grand scheme of things, and if it isn't, by the time you get back in it likel...
by ryman554
Tue Oct 27, 2020 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Possible to Pass On Irrevocable Trust to Children?
Replies: 21
Views: 1282

Re: Possible to Pass On Irrevocable Trust to Children?

I would ask your lawyer if you have an inter vivos (lifetime) power of appointment or if you can disclaim your income interest in the trust thereby accelerating the remainder interests. I am also curious about the fact you have never taken any distributions. If the trust mandates distribution of in...
by ryman554
Wed Oct 14, 2020 9:54 am
Forum: Personal Investments
Topic: Maximum percentage equities in retirement?
Replies: 13
Views: 1363

Re: Maximum percentage equities in retirement?

100%, or more if you want to leverage. I'm not being facetious. However, the devil is in the details. Do you have "just enough" or "loads more than needed"? 2.5% falls into the latter category. Non-intuitively to many, this allows you to be more conservative with your money since...
by ryman554
Tue Oct 13, 2020 8:34 am
Forum: Personal Investments
Topic: Pesky 7-day waiting period for backdoor Roth steps at Vanguard
Replies: 19
Views: 1766

Re: Pesky 7-day waiting period for backdoor Roth steps at Vanguard

I've had this issue every year and I was just as frustrated as you. Until I stopped saving up that money at Ally and just did my backdoor Roth from my EF, which I hold at Vanguard, in my brokerage account. The 7 days hold happens when you contribute outside money (maybe it depends on the bank, but ...
by ryman554
Tue Sep 29, 2020 3:03 pm
Forum: Personal Investments
Topic: My Company Didn't Update my 401K Contribution Amount
Replies: 14
Views: 1338

Re: My Company Didn't Update my 401K Contribution Amount

30% contributions for the rest of the year so I told my wife it would be a cheap Christmas this year. :oops: Why? Let's say that 8% of 3 quarters and 30% of 1 quarter of the year equals 13% all year or whatever. Fine. In both cases you still put $19.5k in the 401(k) and get the same tax breaks. Why...
by ryman554
Tue Sep 29, 2020 9:03 am
Forum: Personal Investments
Topic: My Company Didn't Update my 401K Contribution Amount
Replies: 14
Views: 1338

Re: My Company Didn't Update my 401K Contribution Amount

30% contributions for the rest of the year so I told my wife it would be a cheap Christmas this year. :oops: Why? Let's say that 8% of 3 quarters and 30% of 1 quarter of the year equals 13% all year or whatever. Fine. In both cases you still put $19.5k in the 401(k) and get the same tax breaks. Why...
by ryman554
Tue Sep 29, 2020 8:56 am
Forum: Personal Investments
Topic: RSU Exit Strategy
Replies: 17
Views: 1627

Re: RSU Exit Strategy

Shares vest once a year in February so I should have a pretty open window to avoid any wash sales. I actually didn’t realize a wash sale would apply to RSU vesting. I am at about a 65% loss all in and every grant is at a loss of some level. I actually got into this mess trying to TLH different RSUs...
by ryman554
Tue Sep 22, 2020 11:18 am
Forum: Personal Investments
Topic: Is intermediate treasuries good as fixed income in retirement ?
Replies: 35
Views: 2953

Re: Is intermediate treasuries good as fixed income in retirement ?

Is intermediate treasuries good as fixed income in retirement ? Planning to have 2 to 3 years expenses in cash, Money Market and possibly CD ladder. Planning to keep the next 7 years say from year 3 to 10 expenses, in intermediate treasuries. Is this plan seems practical and optimal or other assets...
by ryman554
Wed Sep 16, 2020 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Front load years 401k contributions when moving from high tax state to no tax state?
Replies: 16
Views: 1087

Re: Front load years 401k contributions when moving from high tax state to no tax state?

If next year I am moving from a high tax state to a no tax state for the majority of the year, regarding taxes, is it smarter to front load traditional 401k contributions while living in the high tax state or will I end up owning the same amount either way? Thanks for any advice! in my state I don'...
by ryman554
Wed Aug 26, 2020 8:24 am
Forum: Personal Investments
Topic: Intermediate bond index versus Total Bond Index
Replies: 34
Views: 4234

Re: Intermediate bond index versus Total Bond Index

On the negative side, when the stock market crashes, Intermediate bond will not hold up as well as total bond, which is not what you want if you plan to rebalance. That was true in 2008/2009. In March 2020 it did not matter which you held. In 2000/2002 the intermediate bond index fund was preferred...
by ryman554
Thu Aug 20, 2020 9:04 am
Forum: Personal Investments
Topic: For anyone else who overcontribute to 401k
Replies: 13
Views: 1264

Re: For anyone else who overcontribute to 401k

My company offers both pre-tax and after tax, which means I can contribute 57000 total for the year. Could someone explain this? 401(k) have three kinds of ways to put in money: 1. pre-tax (traditional) -- behaves like a traditional IRA. 2. post-tax (ROTH 401(k) -- behaves like a ROTH IRA. 3. after...
by ryman554
Fri Aug 14, 2020 11:07 am
Forum: Personal Investments
Topic: How do you manage cash flow for investing?
Replies: 26
Views: 2095

Re: How do you manage cash flow for investing?

Q: When do I buy? A: When you have the money. Q: When do I sell? A: When you need the money. If you aren't investing when you have the money, you have to ask why that strategy is superior. Quibble. No problem when you buy. Money out of sight is out of mind and you don't spend it on junk. However, i...
by ryman554
Thu Aug 13, 2020 8:50 am
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1760
Views: 164748

Re: My LenderFi refinance is going well

There's no way to see the documents you've uploaded on their portal, right? Their document upload is portal is weird when you have to upload more than one of something. They asked for the last 2 pay stubs for me and my wife, so 4 pay stubs in total. I'll probably just end up faxing everything just ...
by ryman554
Fri Aug 07, 2020 9:09 am
Forum: Personal Investments
Topic: Taxable vs Mega Backdoor Roth?
Replies: 19
Views: 1557

Re: Taxable vs Mega Backdoor Roth?

The reason I think it would be infrequent is that a person who is actively doing the mega back door is unlikely to have done a sizable Roth conversion the year before. But yes, it could happen - say after a gap year or some year when income was very low. I have to wonder if you learned this one the...