Search found 53 matches

by LittleDinghy
Tue Apr 27, 2021 7:06 pm
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Re: Golden Butterfly asset location when retired with RMDs

stuper1 wrote:
Tue Apr 27, 2021 6:32 pm
An RMD cannot be rolled over to a Roth. If you are above the age at which RMDs are required, you must take your RMD before you do any Roth conversions.
Looks like I can't follow Sophie's advice then!
by LittleDinghy
Tue Apr 27, 2021 6:23 pm
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Re: Golden Butterfly asset location when retired with RMDs

sophie wrote:
Tue Apr 27, 2021 9:03 am
Roth IRAs are your friend. I want as much gains in there as possible!!! And, never simply withdraw from tax-deferred. Roth convert it and spend down taxable instead.
Can conversions from traditional IRAs (Tax Deferred) to Roth (Tax Free) count as RMDs?
by LittleDinghy
Mon Apr 26, 2021 10:25 pm
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Re: Golden Butterfly asset location when retired with RMDs

The wide differences of opinion on the correct answer to the question I posed is interesting. Sophie and pp4me are at one extreme, Tyler is in the middle, and mathjak107 (supported by Kitces!) and "I Shrugged" are at the opposite extreme. Below are excerpts from posts by each of them that when compa...
by LittleDinghy
Mon Apr 26, 2021 10:09 pm
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Re: Golden Butterfly asset location when retired with RMDs

The degree of opinion difference on the question I posed is interesting. Sophie and pp4me are at one extreme, and mathjak107 (supported by Kitces) and I Shrugged are at the opposite extreme. Here are quotes from posts by all four: sophie » Wed Apr 21, 2021 7:57 am I would do what I'm already doing: ...
by LittleDinghy
Sun Apr 25, 2021 10:47 pm
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Re: Golden Butterfly asset location when retired with RMDs

Because we are self ensuring for long term care for both of us, our charitable giving will be part of our estate.
by LittleDinghy
Sun Apr 25, 2021 9:50 pm
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Re: Golden Butterfly asset location when retired with RMDs

I really appreciate all the responses to my original post. Here is my current reasoning (no decisions yet made), and I'd really appreciate any additional thoughts on it. After one starts taking RMDs at age 72, the only differences between Tax Deferred and After Tax (often called "taxable") accounts ...
by LittleDinghy
Thu Apr 22, 2021 7:58 pm
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Re: Golden Butterfly asset location when retired with RMDs

Thank you everyone, especially Sophie, pp4me and "I Shrugged." In line with your responses, here is what I'm thinking as a target asset location at start of retirement. 20210422_TrgtAsstLctn.PNG In line with "I Shrugged's" post, a little of the gold in the After Tax account is physical and the rest ...
by LittleDinghy
Wed Apr 21, 2021 5:00 am
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Re: Golden Butterfly asset location when retired with RMDs

Here is more info that may help you answer my question. Assume that: 1) Neither RMDs, nor other portfolio returns, will be needed for income initially after retiring. SS and several small pensions more than cover annual expenses, including income taxes. Of course inflation and changes to SS payouts ...
by LittleDinghy
Tue Apr 20, 2021 7:41 pm
Forum: Permanent Portfolio Discussion
Topic: Golden Butterfly asset location when retired with RMDs
Replies: 43
Views: 14296

Golden Butterfly asset location when retired with RMDs

If you were retiring at the end of 2022, having just turned 70 in 2022, and so had RMDs starting in 2024, and had: - 40% in tax deferred - 30 % in after tax, and - 30% in tax free and had 20% each in: - US Total Stock Market index ETFs - US Small Cap Value index ETFs - Long term US treasuries (20-3...
by LittleDinghy
Tue Mar 30, 2021 12:18 pm
Forum: Other Discussions
Topic: Reducing 401k contributions now for tax flexibility later?
Replies: 16
Views: 3569

Re: Reducing 401k contributions now for tax flexibility later?

Thanks. My 401k plan does allow partial in-service distributions, but not until age 59.5 (unless there is a hardship situation). But I suppose it's an option each year I stay past that age. I'm a little confused by this: "On the first after-tax transfers, I don't have to pay tax but do have to also...
by LittleDinghy
Tue Mar 30, 2021 12:06 pm
Forum: Other Discussions
Topic: Reducing 401k contributions now for tax flexibility later?
Replies: 16
Views: 3569

Re: Reducing 401k contributions now for tax flexibility later?

What I think you're saying though, is that instead of refraining from making 401K contributions, FP would be better off making the contributions and then immediately getting in-service rollovers to convert to a Roth IRA - as much as possible and maybe even to the top of his current tax bracket. Tha...
by LittleDinghy
Sat Mar 27, 2021 8:11 pm
Forum: Other Discussions
Topic: Reducing 401k contributions now for tax flexibility later?
Replies: 16
Views: 3569

Re: Reducing 401k contributions now for tax flexibility later?

FlyingPylon, I'm 68 and retiring at 70 in 2022, when I'll be taking Social Security. In 2018 I woke up and realized I had a lot of money in my corporate 401k. Fortunately my company allows in-service partial distributions, so in each of 2018, 2019 and 2020 I've been doing two things: first, trustee-...
by LittleDinghy
Sun Jun 07, 2020 7:59 pm
Forum: Variable Portfolio Discussion
Topic: Golden Butterfly Portfolio
Replies: 539
Views: 348184

Re: Golden Butterfly Portfolio

Can you see your emotional bias coming forth there in that wording? SPY is 5% away from all-time highs. SLYV is still 25% away from all-time highs. Relatively speaking, there's still a lot of room left for SCV to play catch up. If your allocation is to hold 20% SCV, I would just plug your nose and ...
by LittleDinghy
Sun Jun 07, 2020 5:42 pm
Forum: Variable Portfolio Discussion
Topic: Golden Butterfly Portfolio
Replies: 539
Views: 348184

Re: Golden Butterfly Portfolio

A chorus of wise advice here I must say - or rather, ruefully admit, since I sold my SCV at a loss a few weeks back and reverted to the PP from the GB. We have a similar story. Earlier this year my wife and I moved SCV-invested money from our employer-provided individual HSA accounts to new HSA acc...
by LittleDinghy
Fri May 01, 2020 7:50 pm
Forum: Variable Portfolio Discussion
Topic: Golden Butterfly Portfolio
Replies: 539
Views: 348184

Re: Golden Butterfly Portfolio

Last night I just did my end-of-month adding up of our GB portfolio (our whole nest egg for retirement - 2-1/2 years away for me and 7 years away for my spouse) and was pleasantly surprised to find it had hit a new high, a little larger but essentially the same as its previous high the end of Januar...
by LittleDinghy
Tue Apr 07, 2020 6:37 pm
Forum: Permanent Portfolio Discussion
Topic: Data on Re-balancing Bands for Taxable vs Non-Taxable Accounts?
Replies: 7
Views: 3333

Re: Data on Re-balancing Bands for Taxable vs Non-Taxable Accounts?

you don't want to go rebalancing on a whim. You should have some set rules in place. If I were to pick some good rules, I would probably come up with something like 20/30 in non taxable and 15/35 in taxable. Brilliant! Great points. It seems like for taxable accounts that re-balancing is almost a b...
by LittleDinghy
Sat Apr 04, 2020 8:17 pm
Forum: Gold
Topic: Looking for recommendations for investing in paper gold (401k and Roth IRA)
Replies: 17
Views: 7149

Re: Looking for recommendations for investing in paper gold (401k and Roth IRA)

IAU or GLD are what the vast majority of us use for so called paper gold. My preference is IAU because of the much lighter ER. My preference is IAU because of the much lighter ER." About this time a year ago, when I was thinking a lot about how to set up my GB, people on this forum expressed a lot ...
by LittleDinghy
Sat Apr 04, 2020 7:33 pm
Forum: Variable Portfolio Discussion
Topic: Golden Butterfly Portfolio
Replies: 539
Views: 348184

Re: Golden Butterfly Portfolio

My simplistic way of potentially dealing with rebalancing a GB (which is just a HBPP + 20% VB for me) was to track the HBPP portion separately and when the HBPP portion hits a 15%/35% limit on any of the HBPP assets I would rebalance everything back to a GB allocation (20% in all 5 assets). My rati...
by LittleDinghy
Wed Mar 25, 2020 5:58 pm
Forum: Other Discussions
Topic: Daily "Check In" Thread For Us
Replies: 2201
Views: 1111764

Re: Daily "Check In" Thread For Us

Likewise WiseOne. I wish you and yours turn out ok. Hopefully your niece is young!

My wife and I are fine, as is a friend staying with us (who came only after self-quarantining for 15 days)
by LittleDinghy
Mon Mar 23, 2020 1:36 pm
Forum: Permanent Portfolio Discussion
Topic: Asset Allocation in the Most Painful Month
Replies: 31
Views: 14044

Re: Asset Allocation in the Most Painful Month

Thank you so much Tyler!
by LittleDinghy
Sat Mar 21, 2020 8:25 pm
Forum: Variable Portfolio Discussion
Topic: Golden Butterfly Portfolio
Replies: 539
Views: 348184

Re: Golden Butterfly Portfolio

"Per the quote below, and others from the thread,Sophie recommends 30% re-balancing bands [20% plus or minus 30% of 20% (=6%), meaning a range of 14% - 26%]. You might wonder, as I did, why she did not recommend a 40% re-balancing band, such as used with the PP (meaning a range of 15%-35% for the P...
by LittleDinghy
Sat Mar 21, 2020 5:52 pm
Forum: Variable Portfolio Discussion
Topic: Golden Butterfly Portfolio
Replies: 539
Views: 348184

Re: Golden Butterfly Portfolio

I’m curious about why you choose different rebalancing bands for stocks. Since the GB basically " tilts the [PP] portfolio slightly towards Prosperity " ( https://portfoliocharts.com/2016/04/18/the-theory-behind-the-golden-butterfly/), our thought is that the re-balancing band for stocks should ref...
by LittleDinghy
Sat Mar 21, 2020 3:30 pm
Forum: Variable Portfolio Discussion
Topic: Golden Butterfly Portfolio
Replies: 539
Views: 348184

Re: Golden Butterfly Portfolio

I"m sharing below our GB allocation percentages; it would be interesting to compare with others' GB (and PP) portfolios. I had gotten into the habit of checking our allocation percentages at the end of every month, and Jan 31 was our highest total portfolio value since starting the GB last June with...
by LittleDinghy
Thu Mar 19, 2020 1:32 am
Forum: Stocks
Topic: Tax-Loss Harvesting Recommendation (Vanguard Total Stock Index)
Replies: 10
Views: 8042

Re: Tax-Loss Harvesting Recommendation (Vanguard Total Stock Index)

I have never tax loss harvested before and need help. On 8/20/2019 we purchased VTMSX (Vanguard tax-managed small cap value mutual fund) in our taxable account; at the time this money represented about 7% of our nest egg (all in our GB portfolio - we have no VP - everything is in the GB). This eveni...
by LittleDinghy
Wed Mar 11, 2020 12:32 am
Forum: Permanent Portfolio Discussion
Topic: Rebalance during these days of high volatility?
Replies: 25
Views: 11617

Re: Rebalance during these days of high volatility?

In my PP, 4x25, LTT is at least 15% above stocks, as of today’s closing prices. Is there any advice on whether to rebalance between the 2 immediately or wait until the volatility calms down a bit? My reading of The Permanent Portfolio book is that the recommended time to rebalance is when one asset...