Various Financial Questions - Page 4 - TigerDroppings.com

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Lsut81
USA Fan
Member since Jun 2005
64559 posts

re: Various Financial Questions


quote:

gatorsimz


Damn

Thanks for that....






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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5394 posts

re: Various Financial Questions








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Lsut81
USA Fan
Member since Jun 2005
64559 posts

re: Various Financial Questions


While you're here, someone mentioned earlier about being able to spread the tax implications of rolling the 401k into a Roth over 2yrs.... Know anything about that???

TIA






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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5394 posts

re: Various Financial Questions


No idea on that one. Good luck.





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Dead Mike
LSU Fan
Cell Block 4
Member since Mar 2010
1769 posts

re: Various Financial Questions


quote:

While you're here, someone mentioned earlier about being able to spread the tax implications of rolling the 401k into a Roth over 2yrs.... Know anything about that???



I think it might've been only for 2010, and now that I think about it I was thinking of traditional IRA conversions.






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tirebiter
LSU Fan
ATL
Member since Oct 2006
5168 posts

re: Various Financial Questions


quote:

The big theme I've ran into with these papers is that valuations trumps growth. If you believe stocks are still undervalued right now I completely understand your view, I just think they're slightly overvalued and slowing growth will cause people to sell if they believe equities are overvalued. Regardless, hopefully we both live to see 12/31/2017 so see which one of us is right.


Equities may be fairly valued, or under/over, I'm agnostic. Companies issuing noninvestment grade bonds must be laughing at their cost of debt issuance compared to past years. I still like emerging markets equity but not increasing my holdings. After running up to roughly 70% equity near the end of 2008 and early 2009 I am back to 35% of which roughly a quarter is international. Also have roughly 10% of NW in investment RE. In addition to TIPS I have a significant amount in EE and I bonds, the EE's are going to start causing some significant tax payments in roughly 5-yrs and out when they start maturing, but the 4% guaranteed rate these days looks better than anything else out there with no risk.

I was not talking about exotic/levered or inverse ETFs but those that are broad market based equity or segments/sectors of such. Like substituting DEM for VWO to reduce emerging market equity volatility, or using ETF class instead of open end funds to reduce upfront costs and expense ratios, which can be significant savings over time with a large portfolio. Once upon a time I made some significant cabbage in PCRIX and sold it in 2008, which was my last exposure to commodities other than gold and silver bought in the past.






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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29976 posts

re: Various Financial Questions


quote:

As you can see you end up with the same amount, $188,674. So it comes down to whether you believe taxes will be higher or lower when you retire.


Sort of. You are ignoring the fact that when you deduct tax today, you are saving from your highest tax bracket. When you pay tax in retirement, you are paying at least some of it in a lower tax bracket.

In your pay later example, you have $251k before tax, but presumably we will still have a progressive set of tax brackets so that your first however many thousand is, say, 10%, your next however many is 20%, etc. So even if you are in the same marginal tax bracket when you retire you pay less.

However, it may not be that much difference, I personally have a Roth just in case.






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