My father is already well into retirement and he’s always been an aggressive investor. I think even at his age he’s only 5-10% in bonds, if that. I’ve been trying to get him to sell some equities and reallocate (sell high, right?) to bonds.
Is this a good time to do it? Yields being high, etc. Bonds and the myriad ways to buy them confuse me, but it seems like he should have at least 25% in , but in what?
What’s a good thing to do/buy with bond yields going this high?
Income too high for Roth or any deductions for IRA, but husband and I have been contributing to a non deductible IRA….had heard of the backdoor but didn’t really understand it so those accounts having been sitting there earning interest. 🫨About 8k interest in each of our accounts. We’re both close to 50.
My question is: is it definitely worth taking the tax hit on that 16K so we can go backdoor and keep doing backdoor going forward? My only hesitation is that I’ve read books like Simple Path to Wealth where he questions Roths to some extent (not back doors, I understand) because of the lost opportunity to invest the money that would otherwise be taxed.
We’d pay probably 5-6K interest taxes…..which could grow to ????? in 30 years vs all the benefits of the Roth and tax free growth.
My mind is spinning….someone please tell me if this is a no brainer and I just don’t see it.
Thanks!
My husband and I have been putting money into a non deductible IRA for a few years, not understanding the whole backdoor Roth thing. Not sure if I do now.
Anyway, each of our accounts have accumulated about $8600 in interest/dividend (not sure what it’s called.
I also have a very old IRA my grandparents set me up with that started at 1,000 and is now 30k. Husband has no other Iras.
Tax bracket is mid 30’s.
Is it dumb for me to backdoor because of that old IRA? And the pro rata stuff? Should my husband backdoor his and do it more quickly every year going forward?
I know there’s a tax hit now but is it worth it….or is it not worth it because that money can keep growing that wouldn’t get the chance if it’s taxed.
About 15-17 years from retirement.
Thanks!
Can someone help me understand what I’m looking at here and what my options are?
Tank on the right is leaking so has to go. Both are from 2013 and 50 gallons. We inherited these when we bought the house, and I really don’t know why there are two. Is one going to the upstairs (where all the showers are….gets most use and has died) and the other servicing the main floor kitchen?
OR do they work together and send water where needed.
Anyway, I’m trying to figure out my replacement options now and going forward. I think ONE 50 gallon high recovery would be enough. Family of four…mix of morning and night showers. Am I wrong?
So do I replace the leaking one…leave the other as is, then just remove it when it dies? Or can we remove the bad one and just keep using the good one? Does the plumbing allow that?
There’s all the extra plumbing to deal with, so interested in the most efficient way to likely go down to one heater.
Oh and I’m not doing this myself. Just want to understand things before I talk to the salesperson….don’t want to get talked into buying two if I don’t need them etc. looks like they’re 2k a piece and idk what install will be.
Thanks!
I’m new to this, so forgive me if my question seems stupid….anyway, been reading boglehead style investing books and I’m confused about what bonds or bond funds to include in our portfolio.
I’ve got a lot of cash right now in vusxx which I understand is giving us some state tax savings????? Right? We’re in Illinois and we’re in 30% plus tax bracket, so tax savings is big and something I haven’t been keyed into.
I’m going to move some cash into a vanguard stock index fund but I don’t know what to do for the bond portion of the portfolio. I know VBTLX is often cited, but I also know I should consider municipal bonds for tax savings. Vanguard doesn’t offer a municipal fund for Illinois though.
What to do? Get a vanguard bond fund and forget about state tax savings…..buy a municipal bond directly from the state….?
Thanks to anyone who can help!