Search found 1273 matches

by markcoop
Tue Jul 27, 2021 12:22 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

I think I'm comfortable using TBM and the stable value fund. I do own some I-bonds and will probably add TIPS at some point. I am still in the studying phase to determine how much of each and potentially incorporating any rules to make such allocations dynamic (ie., more SV when TBM yields are lower...
by markcoop
Tue Jul 27, 2021 9:03 am
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

Small follow-up - I did speak to my 401K plan. Not a particularly enlightening call. They did confirm that the Neuberger Berman Total Bond Market fund is an index fund. I have never heard anything on these boards about the Neuberger Berman group, which in all honesty makes me a bit nervous. I have b...
by markcoop
Mon Jul 26, 2021 8:24 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 146
Views: 8998

Re: Metrics to Compare Roth Conversion Scenarios ??

I am like many here who have made my own spreadsheet. In my case, I plan to convert to the top of the 12% bracket from retirement till SS begins. In modeling this stuff out, playing around with many assumptions affects the outcome. I assumed stocks returned 6% nominal to be conservative. However, us...
by markcoop
Mon Jul 26, 2021 8:07 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 146
Views: 8998

Re: Metrics to Compare Roth Conversion Scenarios ??

"Once you adjust for the after-tax value, it does not matter which assets you put in a traditional IRA or 401(k) and which you put in a Roth. If you are in a 25% tax bracket, investing $4,000 in the 401(k) or $3,000 in the Roth in the same investment will give you the same after-tax value.&quo...
by markcoop
Wed Jul 21, 2021 4:12 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

The Blended Yield of the stable value fund is 2.41%. From the literature: "Blended yield is a weighted combination of the crediting rates earned by wrap contracts and the interest earned by cash and US savings bonds." In an earlier post, you mentioned that you cannot find a guaranteed rat...
by markcoop
Wed Jul 21, 2021 3:15 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

Maybe lately, all in the stable value fund, but when bonds start producing again, I would not have everything in the stable value fund. Any specific metric to indicate such a point? If a stable value/guaranteed income fund actually is paying more than a bond fund, it makes sense to me to use it. Wh...
by markcoop
Wed Jul 21, 2021 2:49 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

Maybe lately, all in the stable value fund, but when bonds start producing again, I would not have everything in the stable value fund. Any specific metric to indicate such a point? Typically SV yields trail bond yields by some time. When interest rates on bonds rise to significantly exceed your SV...
by markcoop
Wed Jul 21, 2021 2:20 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

retiredjg wrote: Wed Jul 21, 2021 11:54 am Maybe lately, all in the stable value fund, but when bonds start producing again, I would not have everything in the stable value fund.
Any specific metric to indicate such a point?
by markcoop
Wed Jul 21, 2021 2:08 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

I think I have two things I'm looking at here: 1) Would a TBM fund or an Intermediate-Term Bond fund better complement a stable value fund? Probably negligible either way, but interested in opinions. 2) Is the specific bond TBM fund offered a good one? Well, what do you mean by complement? First, d...
by markcoop
Wed Jul 21, 2021 11:02 am
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

One way to evaluate this would be to dig up the BB US Aggregate Bond Index performance over the past several years, and then compare it to how the Neuberger fund actually performed for plan participants. The difference in performance numbers is generally called tracking error. If it's off by more t...
by markcoop
Wed Jul 21, 2021 10:54 am
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

I think I have two things I'm looking at here:
1) Would a TBM fund or an Intermediate-Term Bond fund better complement a stable value fund? Probably negligible either way, but interested in opinions.
2) Is the specific bond TBM fund offered a good one?
by markcoop
Wed Jul 21, 2021 10:42 am
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

Found this: "The fund was transitioned to passive management in the third quarter 2010."
by markcoop
Wed Jul 21, 2021 9:34 am
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

If you have a preference for index funds over actively managed funds, you might be sure that Neuberger fund is an index. The ER sort of hints that it is, but.... Edited to add, I don't find a total bond fund on their site and the closest thing to (core bond) it does not have a low expense ratio. Ye...
by markcoop
Wed Jul 21, 2021 9:11 am
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

I just took a look at the bond funds available. I see two decent options:

1) Vanguard Intermediate-Term Bond Index Fund Institutional - ER = 0.05%

2) Neuberger Berman Total Bond Market - ER = 0.03%

Any thoughts as which may be better to diversify with my stable value fund?
by markcoop
Tue Jul 20, 2021 2:28 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

The 401K has a Total Bond Market fund with an .03% ER. Although the stable value fund has done what I expected, the returns seem a bit low. I understand that is directly related to having higher credit quality bonds. A couple of points. You want to focus on the character of the investment and how i...
by markcoop
Tue Jul 20, 2021 1:52 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

You don't say what fraction of your assets are in bonds. I would not put all of a large portfolio that is more bonds than stocks into a single SV fund. My AA has slowly become more conservative. It is at 50% bonds right now with most of it in the stable value fund. The large balance in the stable v...
by markcoop
Tue Jul 20, 2021 1:50 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

student wrote: Tue Jul 20, 2021 12:57 pm To me, the question is whether you are willing to "pay" a bit, if you stick with stable value fund exclusively, for a smoother ride.
I guess I'm starting to think it is not worth it to pay for a 100% smooth right. A 50/50 allocation between TBM and SV will be pretty smooth.
by markcoop
Tue Jul 20, 2021 12:21 pm
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

Thanks. I am comfortable with the stable value fund. The question, however, that I am pondering is whether it would be worthwhile to diversify beyond the stable value and add TBM or perhaps even a TIPS fund (also available in my 401K with an ER 0.02%).
by markcoop
Tue Jul 20, 2021 10:55 am
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Re: Stable value fund or TBM+stable value fund?

I don't believe there are any major withdrawal restrictions. I have searched quite a bit and the only restriction I see is related to not being able to make a direct exchange to a competing fund, which I don't believe TBM to be. As for the current rate, the only rate I see is a YTD (Daily) rate of 1...
by markcoop
Tue Jul 20, 2021 10:05 am
Forum: Personal Investments
Topic: Stable value fund or TBM+stable value fund?
Replies: 42
Views: 2462

Stable value fund or TBM+stable value fund?

I have always been a fan of taking risk on the equity side. As such, a very large part of my fixed income has been invested in my company’s stable value fund in my 401K. I believe it is a pretty good safe fund. Some returns: 10 yrs: 2.98% 5 yrs: 2.91% 1 yr: 2.45% From the fund literature: “The fund ...
by markcoop
Wed Jul 07, 2021 9:38 pm
Forum: Personal Investments
Topic: Is it too late to shift bonds to tax-deferred now?
Replies: 15
Views: 1054

Re: Is it too late to shift bonds to tax-deferred now?

I am in a similar situation - I have some bonds in my Roth and stock in my 401K. I have been looking for opportunities to do a double switch and keep my AA the same. The taxable part in the OP situation does complicate it a bit more, but the idea is the same. I actually tax-adjust my AA, so the amou...
by markcoop
Tue Jul 06, 2021 7:31 am
Forum: Personal Investments
Topic: Withdrawing Funds from 529
Replies: 30
Views: 2537

Re: Withdrawing Funds from 529

I did everything through my (parent) checking account. I am on my third kid now in college. The only negative is that the some of the tax forms may show inconsistencies (1098T issued to student and 1099Q issued to parent). The IRS did ask about it via mail. I simply explained what I did and that was...
by markcoop
Sat Jul 03, 2021 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: What is your only money regret?
Replies: 166
Views: 16729

Re: What is your only money regret?

Not taking more advantage of the market down-turn last March. It was a major opportunity to restructure some asset placement to better position myself for potential future Roth conversions. I did do some rebalancing, but I got caught up in the waiting for it to drop further and then waiting for it t...
by markcoop
Sat Jul 03, 2021 7:17 am
Forum: Non-US Investing
Topic: Ways to survive the stock market bubble
Replies: 45
Views: 5245

Re: Ways to survive the stock market bubble

I really do believe the market is high right now and will therefore have lower returns at some point in the future. I have no idea the shape of those lower returns. It may be a sharp 10-20% correction. It may be a decade of sideways. It may be alot of ups and downs with a downward trend for a decade...
by markcoop
Fri Jul 02, 2021 6:29 pm
Forum: Personal Investments
Topic: Roth Conversion Advice
Replies: 33
Views: 4064

Re: Roth Conversion Advice

livesoft wrote: Fri Jul 02, 2021 5:33 pm so MFJ taxable income WITH the conversion to about $80.8K.
Wouldn't you have to add in the standard deduction to that amount?
by markcoop
Fri Jul 02, 2021 12:56 pm
Forum: Personal Investments
Topic: Strategies for dollar cost averaging into top of the market
Replies: 37
Views: 4220

Re: Strategies for dollar cost averaging into top of the market

I would say on average, the best way is to lump sum. But, that thing about averages is true here too - no one is average. If you lump sum and the market drops, what would you do (or feel for that matter)? You can call it market timing, but I would not lump sum into this market.
by markcoop
Fri Jul 02, 2021 8:51 am
Forum: Investing - Theory, News & General
Topic: Can I Do The Peter Thiel Roth IRA Thing?
Replies: 60
Views: 7505

Re: Can I Do The Peter Thiel Roth IRA Thing?

The first time I heard about back-door Roth IRAs and then mega-back-door IRAs I was surprised. Here was a strategy, often described on this board and elsewhere, that circumvents the intent of the law. Many here are doing the same thing Peter Theil is doing on a smaller level - pushing the limits of...
by markcoop
Fri Jul 02, 2021 8:14 am
Forum: Investing - Theory, News & General
Topic: Can I Do The Peter Thiel Roth IRA Thing?
Replies: 60
Views: 7505

Re: Can I Do The Peter Thiel Roth IRA Thing?

The first time I heard about back-door Roth IRAs and then mega-back-door IRAs I was surprised. Here was a strategy, often described on this board and elsewhere, that circumvents the intent of the law. Many here are doing the same thing Peter Theil is doing on a smaller level - pushing the limits of ...
by markcoop
Sat Jun 26, 2021 10:26 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman free ebook "We're Talking Millions"
Replies: 27
Views: 8319

Re: Paul Merriman free ebook "We're Talking Millions"

I read through the book quickly. It is pretty good and a relatively easy read. The main advice is to combine a target date index fund with a small-value index fund. If you believe in the small and value factors it is a simple way to achieve that. He recommends 1.5 times your age in the target date f...
by markcoop
Thu Jun 17, 2021 8:53 am
Forum: Personal Investments
Topic: Do you have a "survival" retirement number?
Replies: 94
Views: 10700

Re: Do you have a "survival" retirement number?

I have always preferred to have a range rather than a number for my retirement goal planning. The lower level of the range is not a "survival" point, but rather a number I would be ok. The upper level is the point that I desire. I was happy when I crossed the lower level a couple of years ...
by markcoop
Thu Jun 17, 2021 12:12 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions plans via RPM -- help me compare
Replies: 73
Views: 5702

Re: Roth conversions plans via RPM -- help me compare

Just to re-iterate again, the "optimal" solution is one that results in a flat marginal tax rate throughout the rest of the life of the portfolio. This would eliminate (d) as an option in my mind. Your are leaving low-tax rate conversions on the table between ages 68-71, you would be bett...
by markcoop
Mon Jun 14, 2021 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

I have a lot of playing to do in Turbotax. Some answers to questions above: - No loans this year - He had no job the first half of the year. - He will be making maybe $30K in the second half of the year. That may be the real issue. I just did not think through how that is going to be taxed. If taxe...
by markcoop
Sat Jun 12, 2021 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

I have a lot of playing to do in Turbotax. Some answers to questions above: - No loans this year - He had no job the first half of the year. - He will be making maybe $30K in the second half of the year. That may be the real issue. I just did not think through how that is going to be taxed. If taxe...
by markcoop
Sat Jun 12, 2021 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

I have a lot of playing to do in Turbotax. Some answers to questions above: - No loans this year - He had no job the first half of the year. - He will be making maybe $30K in the second half of the year. That may be the real issue. I just did not think through how that is going to be taxed. If taxed...
by markcoop
Sat Jun 12, 2021 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

I think I may tell my son to move in a couple days later if it will make a difference.
by markcoop
Sat Jun 12, 2021 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

ok...I got it. He is not a dependent. So what are the financial ramifications of that? He will have income the second half of the year, so I believe he will be able to fully claim the AOTC. Is that correct? Any other negative financial ramifications?
by markcoop
Sat Jun 12, 2021 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

He is moving in July 1. So, it sounds like he does not meet the residency test. One other thought, since it is so close, assuming he comes home for a weekend or two in the second half of the year, is that sufficient for tipping the scale?
by markcoop
Sat Jun 12, 2021 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

I looked at that link above and I believe I will meet the support rule of more than 50%. From what I read there is also a residency rule - "dependent rules require that the dependent must have lived with you for more than half of the year". Am I correct to say that Jan 1 to June 30 is not...
by markcoop
Sat Jun 12, 2021 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

I looked at that link above and I believe I will meet the support rule of more than 50%. From what I read there is also a residency rule - "dependent rules require that the dependent must have lived with you for more than half of the year". Am I correct to say that Jan 1 to June 30 is not ...
by markcoop
Sat Jun 12, 2021 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Re: Is my graduating senior a dependent? AOTC considerations?

My son graduated college this past May. He moved back home for June. July 1 he is starting a job and moving to a new apartment. Trying to understand the following: 1) Can I claim him as a dependent? 2) Can I get the AOTC credit? If not, can he get it? 3) What is typically the best way to do this (i...
by markcoop
Sat Jun 12, 2021 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 2176

Is my graduating senior a dependent? AOTC considerations?

My son graduated college this past May. He moved back home for June. July 1 he is starting a job and moving to a new apartment. Trying to understand the following: 1) Can I claim him as a dependent? 2) Can I get the AOTC credit? If not, can he get it? 3) What is typically the best way to do this (in...
by markcoop
Fri Jun 11, 2021 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: 529 ownership to student?
Replies: 8
Views: 749

Re: 529 ownership to student?

The tax problem comes from paying for room and board. Either he or we will have to pay these to the landlord (grocery store, etc) and then be reimbursed by the 529. So we need to document these and claim them properly on the tax return to avoid triggering a taxable event. This seems much harder wit...
by markcoop
Fri Jun 11, 2021 9:51 am
Forum: Investing - Theory, News & General
Topic: Rick Ferri on the Rational Reminder Podcast
Replies: 28
Views: 3649

Re: Rick Ferri on the Rational Reminder Podcast

I would think many of us have been down that journey. I place myself at 3.5 at the moment. Looking at those 4 steps, it sounds to me that step 3 is the only controversial one. Step 1 you don't have a choice about. Step 2 is the positive "aha" moment. At step 4 one realizes that the optimal...
by markcoop
Tue Jun 01, 2021 3:38 pm
Forum: Personal Investments
Topic: ROTH IRA conversion approaches for Over-saved T-IRA
Replies: 56
Views: 5142

Re: ROTH IRA conversion approaches for Over-saved T-IRA

When I look at some of these spreadsheets (above and elsewhere), I get a bit confused on whether all the units are in today dollars or future dollars, or perhaps some mix that really doesn't make sense. Please refer to the RPM author's comments here - "... The model is designed to show nominal...
by markcoop
Tue Jun 01, 2021 2:50 pm
Forum: Personal Investments
Topic: ROTH IRA conversion approaches for Over-saved T-IRA
Replies: 56
Views: 5142

Re: ROTH IRA conversion approaches for Over-saved T-IRA

When I look at some of these spreadsheets (above and elsewhere), I get a bit confused on whether all the units are in today dollars or future dollars, or perhaps some mix that really doesn't make sense. My gut has been that some of these problems are overstated because many of the parts (ie., tax br...
by markcoop
Wed May 26, 2021 12:15 pm
Forum: Personal Investments
Topic: planning for early retirement, while "self insuring" for long term care?
Replies: 51
Views: 5902

Re: planning for early retirement, while "self insuring" for long term care?

When thinking about self-insuring and putting money in a separate bucket, wouldn't the amount needed be the value above what you would have ordinarily needed. For example, if I plan to spend $140K/yr in retirement and LTC costs $240K/yr, then I have already budgeted the $140K. My incremental cost is...
by markcoop
Wed May 26, 2021 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Lifetime Learning Credit - Did Income Limit increase for 2021?
Replies: 7
Views: 679

Re: Lifetime Learning Credit - Did Income Limit increase for 2021?

My middle child graduated college this month. Last year, due to Covid, my income was much less than usual and I actually qualified to get a piece (not 100%) of the LLC. I thought I was being clever by doing LLC in 2020 knowing I could do my last year of AOTC in 2021. In retrospect, given this news, ...
by markcoop
Wed May 26, 2021 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Lifetime Learning Credit - Did Income Limit increase for 2021?
Replies: 7
Views: 679

Re: Lifetime Learning Credit - Did Income Limit increase for 2021?

That is interesting. You don't hear many people talk about getting 5 years of school credits for an undergrad. But with 4 years of school spanning 5 tax years and this higher LLC limit, I expect more will be able to take advantage of that.
by markcoop
Wed May 26, 2021 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Accounting for 529 withdrawl for kids college
Replies: 29
Views: 2753

Re: Accounting for 529 withdrawl for kids college

I am a bit confused how to coordinate the 529 withdrawals and AOTC. If the fall tuition bill comes in at $28,000 how do I include AOTC and pay the college using 529 monies without incurring a penalty. We will be eligible for the AOTC in 2021. Thanks for providing an example or more information to c...
by markcoop
Mon May 10, 2021 7:24 am
Forum: Personal Investments
Topic: Draw down inherited IRA before RMDs start at 72?
Replies: 12
Views: 1196

Re: Draw down inherited IRA before RMDs start at 72?

You should maximize the the 22% tax bracket for inherited IRA withdrawals now, if you plan to maximize it in the future. That is a good point, however I am not sure what my total tax picture looks now vs the future. I currently pay close to 8% state taxes. I am reluctant to pay close to 30% taxes n...