Search found 10946 matches

by David Jay
Sat Jun 19, 2021 10:25 pm
Forum: Investing - Theory, News & General
Topic: Borrowing from 401k to reduce RMD
Replies: 6
Views: 730

Re: Borrowing from 401k to reduce RMD

Do you think a 401K loan takes money out of your 401K account? It doesn’t.

You may be confusing this for the COVID distribution from 2020 with 3 years to pay it back. That was an actual distribution where money is taken out of the 401K account.
by David Jay
Sat Jun 19, 2021 9:37 pm
Forum: Investing - Theory, News & General
Topic: Borrowing from 401k to reduce RMD
Replies: 6
Views: 730

Re: Borrowing from 401k to reduce RMD

Help me understand how you think a loan taken out against your 401K reduces the size of the account (and thus the RMD)?
by David Jay
Sat Jun 19, 2021 9:12 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9122

Re: Roth Conversions - McQuarrie study

Dr. McQuarrie: For background on the demographics here, the Boglehead average and median age of retirement is 58. Fully 70% retire before age 62 so it would be commonplace for folks to have a few years of 100% self funded retirement. Where are those stats kept? I don’t think I have ever seen them i...
by David Jay
Sat Jun 19, 2021 8:34 pm
Forum: Personal Investments
Topic: Portfolio Overhaul Advice Please
Replies: 2
Views: 318

Re: Portfolio Overhaul Advice Please

Welcome to the Forum! We are mostly DYI index investors so you have come to the right place. 3. I’m somewhat interested in some tilt towards small caps and value as well as real estate and emerging markets. Do you think it is worthwhile adding a small portion of these areas for diversification purpo...
by David Jay
Sat Jun 19, 2021 8:00 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9122

Re: Roth Conversions - McQuarrie study

Dr. McQuarrie: For background on the demographics here, the Boglehead average and median age of retirement is 58. Fully 70% retire before age 62 so it would be commonplace for folks to have a few years of 100% self funded retirement. Where are those stats kept? I don’t think I have ever seen them i...
by David Jay
Sat Jun 19, 2021 4:40 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9122

Re: Roth Conversions - McQuarrie study

Dr. McQuarrie:

For background on the demographics here, the Boglehead average and median age of retirement is 58. Fully 70% retire before age 62 so it would be commonplace for folks to have a few years of 100% self funded retirement.
by David Jay
Sat Jun 19, 2021 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Any hints regarding 1099 income in Retirement?
Replies: 8
Views: 711

Re: Any hints regarding 1099 income in Retirement?

No need for a solo 401(k) since it appears you are retired and the earned income would be less than the IRA contribution limits. Yeah, I figured that the FICA (15.3%) and Medicare (3.8%) taxes weren't worth the effort for perhaps $200 in tax savings. You do not save on self employment taxes with a ...
by David Jay
Sat Jun 19, 2021 11:09 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9122

Re: Roth Conversions - McQuarrie study

Given my high pension income stream with a COLA adjusted Federal pension that takes care of all living expenses, I should not be in any low-yielding fixed income in Roth, TDA or taxable accounts -- I should be letting it all ride in equities, right? Absolutely not. AA comes first. Then portfolio. T...
by David Jay
Sat Jun 19, 2021 10:11 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9122

Re: Roth Conversions - McQuarrie study

I've never understood the advice of loading up the TDA with bonds to slow down the growth of that account to lessen the impact of RMDs; seemed like this advice was partly driven by asset allocation goals and that it was purportedly optimal not to grow your TDA so that you would decrease RMDs -- sou...
by David Jay
Sat Jun 19, 2021 9:58 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9122

Re: Roth Conversions - McQuarrie study

Welcome to the forum, this is a “hot” topic right now, as we are seeing the first big tranche of individuals with defined contribution plans reaching retirement age. 1. Indeed, I did not examine the situation of the widow/er subject to future single tax rates. On tap for the revision. FYI: 90% of th...
by David Jay
Sat Jun 19, 2021 9:26 am
Forum: Personal Finance (Not Investing)
Topic: long term health care
Replies: 5
Views: 449

Re: long term health care

How about gifting now? Gift her the money you would spend on Life Insurance. Let her use the money when they are young, rather than waiting until they are retirement age. I will be gifting each year to each child starting next year (withdrawal constrained this year due to ACA, on Medicare next year)...
by David Jay
Sat Jun 19, 2021 8:42 am
Forum: Personal Investments
Topic: Too much cash- Prudential FlexGuard Indexed Variable Annuity as an option?
Replies: 14
Views: 925

Re: Too much cash- Prudential FlexGuard Indexed Variable Annuity as an option?

Your buddy is trying to be polite but read carefully: …the cost/tradeoffs are not unreasonable … Seriously faint praise. He wouldn’t use this double negative language if he liked the product. …Dividends are not included in the returns, which lessens the upside… There goes perhaps 1.8% annually. …you...
by David Jay
Sat Jun 19, 2021 8:14 am
Forum: Personal Consumer Issues
Topic: Favorite Westerns - Name 10
Replies: 46
Views: 2006

Re: Favorite Westerns - Name 10

I can’t believe no one has mentioned my all time favorite: “The Big Country” starring Gregory Peck
by David Jay
Fri Jun 18, 2021 7:35 pm
Forum: Personal Investments
Topic: Annuity Advice
Replies: 7
Views: 784

Re: Annuity Advice

Would it be ill-advised to dump everything into the Schwab S&P 500 Index Fund? That would reduce her fees to .52% with zero diversification. While the Schwab 500 fund is only a single fund, it includes exposure to 500 large US companies, covering roughly 80% of the US stock market. It is very d...
by David Jay
Fri Jun 18, 2021 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Ira to Roth or not.
Replies: 2
Views: 340

Re: Ira to Roth or not.

hulburt1 wrote: Fri Jun 18, 2021 4:33 pmBut once SS kicks in and RMD at 72 I will be at top 22%.
By current law, 22% bracket is scheduled to revert to 25% for the 2026 tax year, so anything you convert in the 22% tax bracket in the next 4 1/2 years will cost less in taxes than withdrawing it beginning in 2026.
by David Jay
Fri Jun 18, 2021 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Election poll worker W2 or 1099
Replies: 11
Views: 721

Re: Election poll worker W2 or 1099

Welcome to the Forum! I am not confident that you "must" be classified as a W-2 employee. Here are the key tests from IRS: Common Law Rules Facts that provide evidence of the degree of control and independence fall into three categories: Behavioral: Does the company control or have the rig...
by David Jay
Fri Jun 18, 2021 9:44 am
Forum: Personal Investments
Topic: New BH Investor After Windfall...Please Help!
Replies: 14
Views: 1926

Re: New BH Investor After Windfall...Please Help!

Welcome to the Forum!

First, take your time and put together a plan. Don't do anything in a hurry.

There is a wiki page on "Managing a Windfall" here: https://www.bogleheads.org/wiki/Managing_a_windfall
by David Jay
Fri Jun 18, 2021 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Any hints regarding 1099 income in Retirement?
Replies: 8
Views: 711

Re: Any hints regarding 1099 income in Retirement?

livesoft wrote: Fri Jun 18, 2021 8:59 amNo need for a solo 401(k) since it appears you are retired and the earned income would be less than the IRA contribution limits.
Yeah, I figured that the FICA and Medicare taxes (15.3%) weren't worth the effort for perhaps $150 in tax savings.
by David Jay
Fri Jun 18, 2021 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Any hints regarding 1099 income in Retirement?
Replies: 8
Views: 711

Any hints regarding 1099 income in Retirement?

I'm looking to help out a friend with some RV hauling and setup (he can't find workers - strange, huh?) and it will be 1099. This will likely be just a couple of thousand dollars for the year, but I am looking for any insights up front. I don't think it is worth the complexity to do anything beyond ...
by David Jay
Thu Jun 17, 2021 6:11 pm
Forum: Personal Consumer Issues
Topic: World Cruise Recommendations
Replies: 38
Views: 2193

Re: World Cruise Recommendations

What is the longest cruise you have been on before? I'd recommend a 30 day cruise before committing to a world cruise. Being on a ship for a month let alone 90-110 days is not the same as 7-14 days. Good point. We were starting to think the same thing...30 days might be a good entry point. We've on...
by David Jay
Thu Jun 17, 2021 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Are we setting ourselves up for Early Retirement properly?
Replies: 26
Views: 3063

Re: Are we setting ourselves up for Early Retirement properly?

When I said “raises”, I meant all salary increases including those from a salary schedule. Save a percenatage every time. If you get in that habit it will serve you well…
by David Jay
Thu Jun 17, 2021 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Are we setting ourselves up for Early Retirement properly?
Replies: 26
Views: 3063

Re: Are we setting ourselves up for Early Retirement properly?

You two are “killing it”! I didn’t make my first retirement account contribution until I was 30. The most important part of retirement is controlling expenses. Every calculation for retirement is based on expenses (save 25x expenses, etc.). If you want to retire early, a key is to avoid inflating yo...
by David Jay
Thu Jun 17, 2021 3:04 pm
Forum: Personal Investments
Topic: Where to invest 500k?
Replies: 26
Views: 3147

Re: Where to invest 500k?

Take the $500,000 and purchase 12,500 shares of British American Tobacco stock. Then, enjoy life as you collect $9,250 checks every 90 days! OP is working and likely in the 35% tax bracket. Why would they want unqualified interest income? Income from qualified sources is taxed at LT capital gains t...
by David Jay
Thu Jun 17, 2021 1:18 pm
Forum: Personal Investments
Topic: Where to invest 500k?
Replies: 26
Views: 3147

Re: Where to invest 500k?

Take the $500,000 and purchase 12,500 shares of British American Tobacco stock. Then, enjoy life as you collect $9,250 checks every 90 days! OP is working and likely in the 35% tax bracket. Why would they want unqualified interest income? Income from qualified sources is taxed at LT capital gains t...
by David Jay
Thu Jun 17, 2021 1:07 pm
Forum: Personal Investments
Topic: VG Federal MM Fund Stopped Earning Interest?
Replies: 5
Views: 506

Re: VG Federal MM Fund Stopped Earning Interest?

Interest rates have pretty much gone to nothing. This will affect all the alternatives that you may choose - “high yield” savings accounts like Ally are 0.5%, short term bond is somewhere around the 1% range.
by David Jay
Thu Jun 17, 2021 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Basic withdraw question
Replies: 17
Views: 1472

Re: Basic withdraw question

Welcome to the forum! If you need to withdraw 4% (or even a bit more) for a few years until you claim SS, no problem. Remember, the 4% number is based on the worst of times , so the vast majority of individuals will end up with a pile of money if they withdraw at-or-below 4% over their retirement y...
by David Jay
Thu Jun 17, 2021 8:59 am
Forum: Investing - Theory, News & General
Topic: What Constitutes "Long term" Investing?
Replies: 18
Views: 1316

Re: What Constitutes "Long term" Investing?

It is common language to say that funds for use within the next 5-7 years should not be in stocks. So "long term" is something longer, perhaps 10+ years.
by David Jay
Thu Jun 17, 2021 8:25 am
Forum: Personal Finance (Not Investing)
Topic: Basic withdraw question
Replies: 17
Views: 1472

Re: Basic withdraw question

Just doing a little math on the back of an envelope, you might be further ahead spending from your tax-deferred accounts and perhaps your Roth for a few years and delay social security. It would mean that you're taking a bit more out of your savings but you'd also be getting a bit more later in soc...
by David Jay
Wed Jun 16, 2021 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Loan
Replies: 30
Views: 1599

Re: 401k Loan

raamakoti wrote: Wed Jun 16, 2021 9:20 pmdid anyone else have a crazy thoughts like I am having.
Nope.
by David Jay
Wed Jun 16, 2021 6:54 pm
Forum: Investing - Theory, News & General
Topic: I'll never regret not having international funds in my portfolio
Replies: 272
Views: 16401

Re: I'll never regret not having international funds in my portfolio

is helmed by a CEO with a 8-byte attention span. Any yet one of his firms is the first company to operate reusable rockets and carry humans into space. Imagine what he could do with an 8- word attention span... Reusable manned spacecraft like the space shuttle circa 1981? Only nation-states have ac...
by David Jay
Wed Jun 16, 2021 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Any Finance Advisors using Helios for estates and trusts ?
Replies: 4
Views: 414

Re: Any Finance Advisors using Helios for estates and trusts ?

I really think you want to work with an attorney who is familiar with Trust law in your state.
by David Jay
Wed Jun 16, 2021 3:30 pm
Forum: Personal Investments
Topic: Company sold
Replies: 19
Views: 1847

Re: Company sold

Why leave it in the 401k? Generally speaking, 401ks have limited fund choices and higher expenses than a individual IRA. For 10 years of backdoor Roth. I am missing something here. How does having funds in a 401k make it easier to do a backdoor Roth? I though you could only do it from a IRA. Any ta...
by David Jay
Wed Jun 16, 2021 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Basic withdraw question
Replies: 17
Views: 1472

Re: Basic withdraw question

Welcome to the forum! If you need to withdraw 4% (or even a bit more) for a few years until you claim SS, no problem. Remember, the 4% number is based on the worst of times , so the vast majority of individuals will end up with a pile of money if they withdraw at-or-below 4% over their retirement ye...
by David Jay
Wed Jun 16, 2021 2:40 pm
Forum: Personal Investments
Topic: Gut check at 24 years old - not sure if I should feel this behind
Replies: 52
Views: 4371

Re: Gut check at 24 years old - not sure if I should feel this behind

You are doing great. A 401K and a Roth (plus no debt!) at age 24. I made my first 401k contribution at age 30, I wish I had been as "with it" in my 20s as you are...
by David Jay
Wed Jun 16, 2021 1:40 pm
Forum: Personal Investments
Topic: Company sold
Replies: 19
Views: 1847

Re: Company sold

alex_686 wrote: Wed Jun 16, 2021 1:33 pm Why leave it in the 401k?

Generally speaking, 401ks have limited fund choices and higher expenses than a individual IRA.
For 10 years of backdoor Roth.
by David Jay
Wed Jun 16, 2021 1:35 pm
Forum: Personal Investments
Topic: Company sold
Replies: 19
Views: 1847

Re: Company sold

An ESOP-owned S Corp, more than likely. The acquiring company is probably liquidating the Plan and merging into an existing 401(k). All the ESOP shares would've been granted pre-tax from the ESOP Trust, so this is the only scenario that makes sense...unless I am missing something. +1, I retired fro...
by David Jay
Wed Jun 16, 2021 12:54 pm
Forum: Non-US Investing
Topic: I want to time the market, talk me out of it and tell me what can go wrong!
Replies: 35
Views: 3070

Re: I want to time the market, talk me out of it and tell me what can go wrong!

It will likely cost you more to have cash on the sidelines for 12 months than the anticipated drop in the price of BND from an interest rate rise.

“Nisiprius” has some great information in this thread: viewtopic.php?p=6069268
by David Jay
Wed Jun 16, 2021 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Communal retirement
Replies: 6
Views: 849

Re: Communal retirement

Wait at least 20 years. So much changes over the decades. You will likely all split up to different states as couples move for jobs, to follow grandkids, etc.
by David Jay
Wed Jun 16, 2021 12:17 pm
Forum: Personal Investments
Topic: Company sold
Replies: 19
Views: 1847

Re: Company sold

3. Leave the money in the 401k for good . Just a quick clarification, you do know that you are entitled to roll-over the entire 401K to a pre-tax traditional IRA upon separation from service, right? That is when one should set up a Roth conversion ladder. In the meantime, read up on the backdoor Ro...
by David Jay
Wed Jun 16, 2021 12:04 pm
Forum: Personal Investments
Topic: Company sold
Replies: 19
Views: 1847

Re: Company sold

I would leave it all in the 401K. You appear to have no pre-tax IRA balances so you can convert $12,000 a year from taxable to Roth through the “backdoor Roth” process tax free. This is a much better plan at your stage of life. I would not do any Roth conversions while still working due to your high...
by David Jay
Wed Jun 16, 2021 8:39 am
Forum: Investing - Theory, News & General
Topic: I'll never regret not having international funds in my portfolio
Replies: 272
Views: 16401

Re: I'll never regret not having international funds in my portfolio

z3r0c00l wrote: Tue Jun 15, 2021 8:49 amis helmed by a CEO with a 8-byte attention span.
Any yet one of his firms is the first company to operate reusable rockets and carry humans into space. Imagine what he could do with an 8-word attention span...
by David Jay
Tue Jun 15, 2021 4:13 pm
Forum: Personal Consumer Issues
Topic: Vacation in Michigan in August
Replies: 22
Views: 1783

Re: Vacation in Michigan in August

The northern half of the lower peninsula is nice, even in August.

Unless you have friends in the Metro area, I would base somewhere further north, and the Lake Michigan side has the most attractions.
by David Jay
Tue Jun 15, 2021 2:28 pm
Forum: Personal Investments
Topic: Advice for a recent widow
Replies: 48
Views: 3699

Re: Advice for a recent widow

The husband died in January of this year. The rental on the property is grandfathered in, but a new buyer might not want to keep it--given the sort of buyers we are getting here on the California Central Coast. She'll be well able to afford the new assisted living facility, which will be the only o...
by David Jay
Tue Jun 15, 2021 1:35 pm
Forum: Personal Investments
Topic: Advice for a recent widow
Replies: 48
Views: 3699

Re: Advice for a recent widow

My initial impression is that she can't afford the house and should sell it quickly. At the very least I'd pay off that large mortgage with the insurance proceeds. This! Focusing your questions on which brokerage and what DCA percentage is ignoring the elephant in the room. Let's get the spending u...
by David Jay
Tue Jun 15, 2021 11:55 am
Forum: Personal Investments
Topic: VINIX all the way or...
Replies: 8
Views: 1117

Re: VINIX all the way or...

Large Cap Growth has been on a tear for the last dozen years or so. You have benefited from that history by owning that MFS fund.

Will it continue in the future? Dunno. That is why I hold the total US market and total Intl. market, because I don't know what is around the next corner.
by David Jay
Tue Jun 15, 2021 11:48 am
Forum: Investing - Theory, News & General
Topic: Fidelity Question - Does Fidelity 500 Index + Fidelity Extended Market Index Fund = a total stock market index fund?
Replies: 4
Views: 505

Re: Fidelity Question - Does Fidelity 500 Index + Fidelity Extended Market Index Fund = a total stock market index fund?

Yes.

The approximate allocation is about 15% to 20% Extended market (the Vanguard allocations are 82% SP500, 18% Extended Market but Fidelity may not be exactly the same).
by David Jay
Tue Jun 15, 2021 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Retirement & Inheritance planning
Replies: 5
Views: 1125

Re: Retirement & Inheritance planning

Welcome to the forum! Questions: 1. Let's assume retirement of at age 55. What should be the strategy/sequence to withdraw from the IRA/401k/MF/Brokerage accounts? I think the general guidance is to withdraw from non-tax advantaged accounts first - so that would mean I withdraw from the MF/Brokerage...
by David Jay
Tue Jun 15, 2021 10:21 am
Forum: Personal Investments
Topic: Which index fund(s) to buy and hold in my 401k?
Replies: 8
Views: 756

Re: Which index fund(s) to buy and hold in my 401k?

The biggest reason why I want to see the ERs is that, if the Target Date funds have reasonable cost, one of those is probably the best choice from a behavioral standpoint. I like what "Neurosphere", a financial advisor and long time forum contributor has in his signature line: " If yo...
by David Jay
Mon Jun 14, 2021 9:08 pm
Forum: Personal Investments
Topic: How to tilt away from possible bubbles in mega-cap growth stocks
Replies: 26
Views: 1818

Re: How to tilt away from possible bubbles in mega-cap growth stocks

It's important not to chase returns and not to predict the market. No one knows nothing. Pick a strategy you are comfortable with and stick to it. My personal strategy is to tilt mid, small, small value, and REITs in my equities that includes US and international. It was, and remains my strategy un...
by David Jay
Mon Jun 14, 2021 9:02 pm
Forum: Personal Investments
Topic: Which index fund(s) to buy and hold in my 401k?
Replies: 8
Views: 756

Re: Which index fund(s) to buy and hold in my 401k?

You haven't listed any of the fund ERs. Bogleheads always care about the costs.