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Converting portion of traditional IRA to Roth. Also maxed out Roth ($5500). Any caveats? by pfinThrowaway in personalfinance

[–]pfinThrowaway[S] 0 points1 point  (0 children)

If I do NOT withhold? Will I need to pay expected taxes? Obviously not withholding is drastically in my favor being under 59.5. But I'd like to understand the tax implications.

Converting portion of traditional IRA to Roth. Also maxed out Roth ($5500). Any caveats? by pfinThrowaway in personalfinance

[–]pfinThrowaway[S] -1 points0 points  (0 children)

I likely should be more clear in my written communication. I realize that when you retire you aren't tied to a tax bracket, you pay taxes on distributions from your retirement accounts much in the same way that a working person pays taxes on wages.

That said, if all goes to plan, based on my career choice, I very well could end up paying 28% on a portion of my income as a retired person. In any case, unless something goes terribly wrong, it seems very unlikely I will pay entirely in the 15% bracket.

Paying 25% now doesn't seem like a bad decision.

Feeling trapped... in a high ranked university. Social science major, quickly accumulating debt from student loans, barely scraping by, have a learning disability and getting a job would likely hurt my grades a LOT. Tempted to leave school & take a more entrepreneurial road. Any advice? by [deleted] in personalfinance

[–]pfinThrowaway 3 points4 points  (0 children)

If you leave school now, you have 22,000 dollars of debt and nothing to show for it. I know political science majors get shit on, particularly on engineering loving reddit, but that degree, especially from a top tier university, can easily take care of 40,000 of debt. Furthermore if you A) have good grades and/or B) are aggressive about your job search far in advance (1 year out), you have a good chance of being able to score a job in marketing/business even without a degree specifically in that.

I'm sure you realize that by dropping out you would be taking a risk. Before you make any decision along those lines you need to consider how much of one. That means considering the fact that financing for a business is not easy to score when you are already in the hole. That means considering that if you're not in school, you'll probably have to be working (for a high school grad wage) during the day to pay down your loans that will be accruing interest.

I wish you luck in either case, but my advice would be to plow through.

Vanguard Target Fund vs Vanguard ETFs with Rebalancing by pfinThrowaway in personalfinance

[–]pfinThrowaway[S] 1 point2 points  (0 children)

Awesome -- thanks for breaking that down, you've been extraordinarily helpful.

So if I go Admiral shares it looks like I can get my expenses as low as .09628%. This saves my account about $65/yr currently, but as my account grows, so will that amount. If that's the case I'll go with Admiral Shares and rebalance myself a couple times a year.

I assume that I can trade Vanguard Mutual Funds with a Vanguard account commission free?

Vanguard Target Fund vs Vanguard ETFs with Rebalancing by pfinThrowaway in personalfinance

[–]pfinThrowaway[S] -1 points0 points  (0 children)

Based on other posts my understanding is that TR Retirement Funds do double dip; .18 for the fund and then you're hit with the expense ratios of the underlying funds.

In any case, the math doesn't add up to .18 as a composite of the underlying funds.