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Lion to myself

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Everything posted by Lion to myself

  1. I’m not currently doing this but based on what you described I think it’s a great way to leave a legacy for the reasons you mentioned (no RMDs, no taxes for the benys). Having access to a 401k and a 457 is a real nice bonus too if that’s the case (I may be making the wrong assumption).
  2. Typically you do not need to move an old 401k. Sometimes the company or its retirement provider may “kick” you out if its a small balance ($2500 or less). With that said it probably makes sense to move it to the new 401k or an IRA. Stbugs gave great advice on why to chose an IRA (unlimited investment options and lower costs most likely). The negatives of an IRA are no loan provisions and you lose the ability to withdrawal at 55 if your wife retires early (though there are ways to avoid penalties in IRAs for early w/d). It’s a good idea to explore the plan rules (loan provisions for exampl
  3. Cap Gains is determined by your income. $0-$80,800 (Married Filing Jointly) in income pays zero on Capital Gains for example. Not a tax guy though, just my understanding.
  4. What a nice space you created! The white under decking really brightens the space up.
  5. If you plan on tapping some of the funds in three years it would be prudent to move at least that amount to something conservative in my opinion.
  6. My understanding is that it’s $10k per beneficiary regardless of source. And I believe your thinking is sound, flexibility is a good thing
  7. Yes to your question. Tax Credits are a dollar for dollar reduction in your tax bill. Tax Deductions reduce your taxable income. I’m not a tax advisor but that’s my understanding.
  8. Correct. And to answer you other question, investing in index funds in a fidelity brokerage is a great idea. That’s my vote given you are taking advantage of the tax deferred plans, HSAs and Roth already. Build that after tax portfolio. Down the road you can get into individual stocks if you like.
  9. It’s on your account page somewhere but as gruecdr mentioned it’s going to be low given it’s Vanguard. It will not even be close to 1% and is most likely .15%. I’d still explore the brokerage option and hear what you advisor has in mind. But definitely consider the additional cost before making any decision. Nothing wrong with a set it and forget option like a Lifecycle fund.
  10. It’s worth looking into for comparison sake. You may be paying 1% for the lifecycle fund so a switch to the brokerage window could drop those costs considerably. Of course the advisor is going to charge you and you may end up back around 1% but with someone actively managing your money in a coordinated fashion. Or you could move it to the brokerage window and manage it yourself. I’m making a lot of assumptions here but worth a look.
  11. It is rebalancing. There would be only two ways to keep that target allocation. One is rebalancing and the other is using the inflows of new money. It’s doing both. Not trying to beat a dead horse here just hoping to educate the masses.
  12. The all in one portfolio will rebalance itself so it’s doing the same thing but I prefer the second approach of splitting the money into separate funds for more control of when the rebalancing takes place. HaFo mentioned TIPS for some of the bonds, I’d recommend them as well for what you are trying to accomplish. The fund Nutter Butter linked above is a good bond fund for the rest (or something similar).
  13. It’s ok to skip them if you want but 10% to 20% would be my suggestion. Past performance is not an indicator of future performance and buying assets when they are down is what you want to do.
  14. If there is no cap on how much the will match then sky’s the limit. Do what’s comfortable budget wise. I think 15% to 20% all in (employee and employer) towards retirement is a great place to be.
  15. I’d go with the American Fund’s Growth Fund of America in an effort to stay under 1% expense ratio. At least it’s actively managed so you can justify paying more. The State Street index fund would be fine too. But to your point, you are there for the “free money”.
  16. Your overall approach looks good to me. I’d put the 4% in to get the 2% from the employer regardless of expenses. You will be getting a 50% return on your money right off the bat. If it’s not too much trouble, take a picture of the expense ratios next to the fund names.
  17. Or you could take $100k once and place it into a hybrid policy that will give you $400k in benefits. And then blow the other $300k on the grandkids while your alive or at the very least ensure that they get it when you pass. Not a knock on your strategy just trying to illustrate how Hybrid are a form of self funding and asset protection combined.
  18. 58 to 62 is probably the sweet spot for purchasing LTC insurance. Check out hybrid policies if you are considering self insuring (link below will give you the idea). In short your taking a portion of your money and putting into a hybrid policy of life insurance and Long Term Care insurance that will protect the rest of your nest egg. If you don’t use it it will go to your beneficiaries, if you have a LTC need it will provided a monthly benefit or if you decide you don’t want it anymore you can usually get your money back. https://www.kiplinger.com/article/retirement/t036-c032-s014
  19. Looks great! I like how they went up the walls several inches.
  20. If they don’t then I think you can make an argument that they should. But it would only be the interest earned on the cash reserve account which is going to be very minimal.
  21. This is an advisory account so he is acting as a fiduciary on this account but not necessarily every account you have with him. D House brings up an excellent question, is the 1.25% inclusive of the portfolio cost which is .53% or is in on top of that. Going with low cost option makes sense if your ready to go it alone especially if you only rely on the advisor for only asset management. Good advisors add a lot more value than just asset management, so you will need to decide if he is worth it.
  22. Simple IRAs are tied to an employer and you won’t be able to open one up just for yourself. Nothing wrong with going after tax if you need to build that up for withdrawals before 59 1/2. If eligible for the Roth still, then that could be a nice option. You can access contributions before 59 1/2.
  23. No. You will not have to execute the loans until you are ready to buy (seller accepts your offer). Your lender will want to know the source of the funds so most likely you will provide your 401k statements as proof of funds. Your approval will be contingent on carrying that out. As Dezbelief stated above, the next step would be to engage your lender and have this discussion.
  24. The downside is that you’re taking $100k out of the market. But this may still be your best option though. There are no tax implications for taking the loan or repaying no matter the year. You will owe interest even if you pay off early but you need to check with your 401k providers for the details on that. You will want to get Pre-Approved (not pre-qualified) for the new loan to make you a strong buyer. You will need to qualify for both payments if your intentions are to buy the new home before selling your current. Home Equity loan is another option instead of the retirement plan
  25. Equitable usually has high expenses, I’d leave them if you can. If you are no longer working for the institution that offered the plan you can roll it over to an IRA. If you are still working at said institution then explore other providers if that’s offered. If you are still working but over 59 1/2 you may be able to do an in-service rollover. Depends on the plans rules.
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