came back later to see if you answered my question, and you did! thank you! thank you rob, feeling confident doing this on my own. appreciate the structured, and unstructured videos
Rob, you crack me up! No, you've never done any Roth conversions! Hilarious! My husband and I are in our early 60's. I felt like I had made a big mistake by not being on top of doing some conversions in earlier years. In Georgia, there are investment income tax breaks starting at age 62, so delaying was the right thing to do. Seriously, you make comments in every video that help me in charting the retirement course. Thank you! I hope you are making a boat load of $$ on RUclips.
I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $120k in a savings account that I want to invest in a non-retirement account. Where would you invest this as of now?
Look up, dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, you should work with a financial advisor to help set up a well-structured portfolio.
@robberger Always good content, Rob. Q: Do you rebalanced your brokerage/taxable accounts knowing you'll be creating a taxable event? What are your thoughts here.
Unfortunately when donating through a DAF, currently is more difficult to get a deduction by itemizing, especially with the SALT limitation and if your mortgage interest is low or gone. This makes it very difficult to deduct the first $10-15k of your donation for the year if you are filing MFJ with an almost $30k standard deduction.
DAF allows you to bundle a few years worth of your contributions into one tax year and then dole it out to charities over several years. This allows you to boost your itemized deductions in one year to get above the standard deduction.
I rebalance every December 16 the day after my monthly RMD and last of the year. I HAVE 10 funds and take my RMD from the fund with the largest balance every month. Since starting RMDs the rebalancing is not near as dramatic since I’ve been taking money out of the most successful yearly funds on a monthly basis.
Rebalancing often has a tax consequence, unless you’re loss harvesting. I don’t want any more gains in this tax year… hopefully can get through election volatility, etc. 👍
Darn I missed this live. Thankful for the replay though. Currently, the bulk of my 401k is in an index fund that tracks the S&P 500. I am retiring in January and think I need to move some of that to a more conservative fund. What are your thoughts on stable value funds? My 401K administrator offers one stable value fund (Invesco). I know you can't give investment advice. Just curious what you think, good or bad idea?
bond question? let's say i buy a bond with a 2030 maturity and its first call date if 2025. if the bond is called in 2025 do i get the maturity "par" value? or do i suffer interest rate risk?
When you transfer funds from an IRA into a Roth with Fidelity you have to check a box that says you will have to pay taxes on the amount transferred (just did it this last month).
Correct. The problem here is that the conversion came from a 401k, not an IRA. This probably had to be done on the phone or it was treated as a rollover by the platform.
Any fans of Merriman 4 fund (SP500, LCV, SCB, SCV) or 2 fund (SP500, SCV)? Thinking of rebalancing from 100% SP500 into one of these portfolios. I'd sell and buy within tax protected IRA and roth IRA and leave taxable alone.
I’m a fan. I’m investing in a DIY target date fund that terminates in the Merriman Ultimate Buy & Hold (10-fund) portfolio. And after reading his work and the factor investing research from the likes of Fama and French, I’m highly optimistic for my long term returns. Still in my 30s though, so we’re mostly in US SCV, Int SCV, and EM at the moment.
Ran the portfolio visualizer Monte Carlo analysis vs S&P and it’s marginally better than S&P across all projection, but minimally better than an 80/20 with munis and S&P ( which is my choice)
Yikes. The median retirement income in the U.S. is around $50,000, and the average tax rate on that is usually 4-5%, thanks to the Standard Deduction ($14,600 for single filers, $29,200 for married couples, and even higher for those 65+). Trumps Project 2025 calls for a flat tax, which might sound good if you're working, especially as a high earner. It proposes simplifying the tax brackets to 15% and 30%, but it also eliminates deductions and credits. So, for example, if you currently have an effective tax rate of 19% on an income of $165,000, you could benefit from a lower rate. But for retirees making around the median $50K with a current effective rate of 4-5%, your taxes could triple under this plan, jumping to 15%. That’s a big increase!
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came back later to see if you answered my question, and you did! thank you!
thank you rob, feeling confident doing this on my own. appreciate the structured, and unstructured videos
Hi Rob - I really enjoyed this session. Thank you for sharing your thoughts so openly!
Enjoy your videos and new letters. Can't wait for your book Rob! I'm retiring in another year so Get-R Done....
Rob, you crack me up! No, you've never done any Roth conversions! Hilarious! My husband and I are in our early 60's. I felt like I had made a big mistake by not being on top of doing some conversions in earlier years. In Georgia, there are investment income tax breaks starting at age 62, so delaying was the right thing to do. Seriously, you make comments in every video that help me in charting the retirement course. Thank you! I hope you are making a boat load of $$ on RUclips.
Jack Bogle also was heavily investing in Wellington Fund which rebalanced itself.
I’ve never done a Roth conversion either! Good decision
Are you seeing no impact on converting?
Valuations of the top handful of companies in the S&P500 are a lot more expensive than the other 490.
Coffee at night doesn't keep you up!?! Wow. I'm the complete opposite. In fact, I can't have too much coffee in the morning or I get too on edge.
I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $120k in a savings account that I want to invest in a non-retirement account. Where would you invest this as of now?
Look up, dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, you should work with a financial advisor to help set up a well-structured portfolio.
Invest using low cost index funds according to the asset allocation in your written investing plan.
@robberger Always good content, Rob. Q: Do you rebalanced your brokerage/taxable accounts knowing you'll be creating a taxable event? What are your thoughts here.
Unfortunately when donating through a DAF, currently is more difficult to get a deduction by itemizing, especially with the SALT limitation and if your mortgage interest is low or gone. This makes it very difficult to deduct the first $10-15k of your donation for the year if you are filing MFJ with an almost $30k standard deduction.
DAF allows you to bundle a few years worth of your contributions into one tax year and then dole it out to charities over several years. This allows you to boost your itemized deductions in one year to get above the standard deduction.
I rebalance every December 16 the day after my monthly RMD and last of the year. I HAVE 10 funds and take my RMD from the fund with the largest balance every month. Since starting RMDs the rebalancing is not near as dramatic since I’ve been taking money out of the most successful yearly funds on a monthly basis.
What do you invest in tho
@@Nuggiesoftruth SPY,QQQ,MGC, IJR, MDY, EEM, EFA, AGG, IEF, ICSH. 10% each
Great tips!
Rebalancing often has a tax consequence, unless you’re loss harvesting. I don’t want any more gains in this tax year… hopefully can get through election volatility, etc. 👍
Darn I missed this live. Thankful for the replay though. Currently, the bulk of my 401k is in an index fund that tracks the S&P 500. I am retiring in January and think I need to move some of that to a more conservative fund. What are your thoughts on stable value funds? My 401K administrator offers one stable value fund (Invesco). I know you can't give investment advice. Just curious what you think, good or bad idea?
bond question? let's say i buy a bond with a 2030 maturity and its first call date if 2025. if the bond is called in 2025 do i get the maturity "par" value? or do i suffer interest rate risk?
When you transfer funds from an IRA into a Roth with Fidelity you have to check a box that says you will have to pay taxes on the amount transferred (just did it this last month).
Correct. The problem here is that the conversion came from a 401k, not an IRA. This probably had to be done on the phone or it was treated as a rollover by the platform.
@robberger will you have an audio book version of your new book?
Not going to FinCon but I do live in Atlanta so I’m up for a meet ‘n greet.
Any fans of Merriman 4 fund (SP500, LCV, SCB, SCV) or 2 fund (SP500, SCV)? Thinking of rebalancing from 100% SP500 into one of these portfolios. I'd sell and buy within tax protected IRA and roth IRA and leave taxable alone.
Yeah, I like that portfolio, 4 fund. Has been excellent for me. Make a lot of sense to me. I'm 52, hope to retire in 3 years.
I’m a fan. I’m investing in a DIY target date fund that terminates in the Merriman Ultimate Buy & Hold (10-fund) portfolio. And after reading his work and the factor investing research from the likes of Fama and French, I’m highly optimistic for my long term returns. Still in my 30s though, so we’re mostly in US SCV, Int SCV, and EM at the moment.
Ran the portfolio visualizer Monte Carlo analysis vs S&P and it’s marginally better than S&P across all projection, but minimally better than an 80/20 with munis and S&P ( which is my choice)
It's not just that the performance is as good or slightly better, it that the merriman portfolios are generally more stable
With money Market funds & CDs paying 4.5%, what is the advantage of having a bond fund right now?
CDs at that rate are more short term. I’d buy bond funds for long term buy and forget thing.
MMs and CDs may go up a bit at this crazy time. Bond funds seem to have no rhyme or reason and are acting volatile. So tired watching them.
Yikes.
The median retirement income in the U.S. is around $50,000, and the average tax rate on that is usually 4-5%, thanks to the Standard Deduction ($14,600 for single filers, $29,200 for married couples, and even higher for those 65+).
Trumps Project 2025 calls for a flat tax, which might sound good if you're working, especially as a high earner. It proposes simplifying the tax brackets to 15% and 30%, but it also eliminates deductions and credits.
So, for example, if you currently have an effective tax rate of 19% on an income of $165,000, you could benefit from a lower rate. But for retirees making around the median $50K with a current effective rate of 4-5%, your taxes could triple under this plan, jumping to 15%. That’s a big increase!
Project 2025 is not Trump’s , it was proposed by the Heritage Foundation. Please keep your biased political views out of financial discussions.
@rob Berger how often do you do Live Q&A, can I get a reminder to my email/