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Re: Grandfather wanting to transfer portfolio to kids. Ques

Thanks, Alex, perhaps I misunderstood some posts. Although I have seen similar posts where children feel the need to make their well heeled parents conform to their investing philosophy. It obviously hit a nerve. I don't have a problem with the family doing whatever they want with the money after g...
by MathWizard
Sat Jan 24, 2015 1:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Grandfather wanting to transfer portfolio to kids. Question
Replies: 67
Views: 2892

Re: 4% Withdrawal Rate Question

The initial draw is 4% and is inflation adjusted each year, so that the draw is the same each year in "constant" (inflation-adjusted) dollars. To achive this without the portfolio being drawn down requires returns of more than 4%, effectively 4% in "real" terms, whihc is more lik...
by MathWizard
Sat Jan 24, 2015 12:49 am
 
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal Rate Question
Replies: 16
Views: 1881

Re: Grandfather wanting to transfer portfolio to kids. Ques

Your grandfather wants to teach his daughter one last thing. If he has made so much money, the portfolio will not likely lose much if she made zero trades and just let the money ride. I'd suggest to your mom that she tell her dad that she is worried about making large mistakes early on. She could do...
by MathWizard
Fri Jan 23, 2015 2:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Grandfather wanting to transfer portfolio to kids. Question
Replies: 67
Views: 2892

Re: Withdrawal tax optimizer

This might meet your needs, but double check using real tax software: http://www.i-orp.com Thanks. I have looked at that, actually, but it seems a bit simplistic for what I was thinking about. For example, it makes you tell them what the after-tax account's income tax rate is. I would think it woul...
by MathWizard
Fri Jan 23, 2015 1:44 am
 
Forum: Personal Finance (Not Investing)
Topic: Withdrawal tax optimizer
Replies: 7
Views: 425

Re: Emergency Fund: Savings vs. Checking accounts

Given you don't have CCs, I would just use a local credit union. The you can even stop by and get the money
from a teller if all else fails. Even if you had $3K in there, 1% is only going to net you $30/yr. EFs require
liquidity. I use CCs to cover any transfer time.
by MathWizard
Fri Jan 23, 2015 1:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund: Savings vs. Checking accounts
Replies: 21
Views: 1235

Re: Poll: Principles of Boglehead Philosopy

The only obvious one is costs matter. My "other" is to pick an AA for which you can "stay the course". There are many of these that derive from others. Use (low cost) index funds grows out of minimize costs , and diversify investments. Live below your means is implicit in having ...
by MathWizard
Fri Jan 23, 2015 1:22 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Principles of Boglehead Philosophy
Replies: 64
Views: 3095

Re: My strange little hobby

This hobby is no stranger than adults wanting
the autograph of someone whose greatest achievement
in life was hitting a ball over a fence.


I have an autographed book, I don't find that
strange.
by MathWizard
Thu Jan 22, 2015 4:41 pm
 
Forum: Personal Consumer Issues
Topic: My strange little hobby [Collecting signatures]
Replies: 19
Views: 2393

Re: [Poll] Do u believe in weak/semi/strong EMH? (multi opti

[quote="nisiprius"]I believe in what I will call the "ultra-weak" form. I believe that a) I, personally, cannot earn excess return in the long run by using investment strategies based anything I can learn about individual securities--prices history or fundamentals. b) I, personal...
by MathWizard
Thu Jan 22, 2015 4:36 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] Do u believe in weak/semi/strong EMH? (multi options)
Replies: 11
Views: 685

Re: TV sound options for hearing impaired

If there is a telecoil in the hearing aid, it already has a receiver . A newer landline phone should have a sender so landlines are easier to use for folks with hearing aids which have a telecoil so they are good to have anyway. Check with the audiologist to see if there is a telecoil in the hearing...
by MathWizard
Thu Jan 22, 2015 4:29 pm
 
Forum: Personal Consumer Issues
Topic: TV sound options for hearing impaired
Replies: 12
Views: 910

Re: Cosign or write loan

They have bad credit already, there's probably a reason. If you cosign, and those same behaviors repeat (late/missing payments ...) by the time you find out, your credit rating may be shot, and you'll still have to pay off the loan. http://www.thefiscaltimes.com/Articles/2014/03/24/5-Easy-Ways-Ruin-...
by MathWizard
Wed Jan 21, 2015 8:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cosign or write loan
Replies: 40
Views: 1456

Re: Keurig-cup coffee makers - why?

My Brother can only have decaf now, SIL hates Decaf.
Sol'n was a Keurig, and his & her Kcup trees.

They did not want two pots of coffee around and can easily afford small indulgences, and
are going to enjoy themselves while retired.
by MathWizard
Wed Jan 21, 2015 7:55 pm
 
Forum: Personal Consumer Issues
Topic: Keurig-cup coffee makers - why?
Replies: 67
Views: 4624

Re: I'm thinking about making very large 529 contributions A

Unless you were already planning to do this, I would suggest you do not.

Let your plan do its work, and don't adjust it based on a news item.
Quick deviations from a well thought out plan is a sure way to ruin.
by MathWizard
Wed Jan 21, 2015 3:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: I'm thinking about making very large 529 contributions ASAP
Replies: 63
Views: 4263

Re: How does Spending/Saving change as Empty Nesters?

One out, one to go.

Car ins. will go down if you have them on your policy.
Car reg. maintenance etc. will also go down if you supply and maintain the cars.

You also lose a deduction, so you may get bumped into the next tax bracket, which might
push more tax-deferred vs. ROTH.
by MathWizard
Tue Jan 20, 2015 12:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: How does Spending/Saving change as Empty Nesters?
Replies: 11
Views: 1186

Re: Roth IRA and 401k limits ?

I think your friend is close to right. Here's a good infographic that explains this. It's from 2013, so the income limits have gone up a few thousand, but the principles are the same. Infographic: 2013 IRA Contribution Cheat Sheet - MyBackOffice (MBO) MyBackOffice (MBO) This: When you have a 401K, ...
by MathWizard
Mon Jan 19, 2015 2:44 pm
 
Forum: Investing - Theory, News & General
Topic: Roth IRA and 401k limits ?
Replies: 17
Views: 957

Re: Life-Teaching Topics for my Kids

Here are topics that we taught our children. Topics: 1) Respect for parents/teachers/elders/others 2) Patience 3) How to interact with peers, how to pick good friends. 4) Reading 5) Basic deductive logic, and how to apply it to everyday life 6) Knowing good sources of information. (nih.gov or mayocl...
by MathWizard
Tue Jan 13, 2015 4:25 pm
 
Forum: Personal Consumer Issues
Topic: Life-Teaching Topics for my Kids
Replies: 42
Views: 2703

Re: How to transfer estate without including tax man

You don't pay taxes on your estate, your heirs do. It's no different than when if they won the lottery. I understand that people think that "my" money shouldn't be taxed twice but it's no longer "your" money when it gets doled out to the lucky recipients of your estate. AFAIK th...
by MathWizard
Tue Jan 13, 2015 1:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to transfer estate without including tax man
Replies: 27
Views: 2398

Re: Get ready for lower SWR

There is now a $1M prize for extending human life spans to 120. If we do succeed, how would that affect the often cited SWR of 4%? http://www.theguardian.com/science/2015/jan/11/-sp-live-forever-extend-life-calico-google-longevity The $1Million prize is irrelevant. You don't think that there was ev...
by MathWizard
Mon Jan 12, 2015 4:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Get ready for lower SWR
Replies: 13
Views: 2071

Re: Strategies to get more into ROTH at top of 15% bracket?

10% of the $13,000. Assuming current tax laws with tax brackets indexed with inflation, I will never be in the 25% bracket in retirement. I am at the top of the 15% tax bracket with normal expenses, higher mortgage payments, cash flowing college and having bunched 2015 deductible payments into 2014....
by MathWizard
Sun Jan 11, 2015 10:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Strategies to get more into ROTH at top of 15% bracket?
Replies: 5
Views: 830

Re: Is a Sub-4% SWR a Boglehead Quirk?

Currently for $1M you can buy an inflation-indexed annuity (SPIA) paying inflation-indexed $40k/yr for a 65 year old couple for (the longer) life inflation-indexed $40k/yr for a 60 year old individual for life Payouts would be higher in times of higher interest rates. Since that option is there, it...
by MathWizard
Sat Jan 10, 2015 10:24 pm
 
Forum: Investing - Theory, News & General
Topic: Is a Sub-4% SWR a Boglehead Quirk?
Replies: 177
Views: 10624

Re: Home Energy Audit - worth it?

I'd say your audit was a poor one.

We had a free audit from our utility. Blower door, infrared, and checked efficiency
of hvac system.

The only improvement recommended was adding to attic insulation which we did.
This was basically free after utility rebates and tax credits.
by MathWizard
Sat Jan 10, 2015 6:22 pm
 
Forum: Personal Consumer Issues
Topic: Home Energy Audit - worth it?
Replies: 22
Views: 2281

Re: Strategies to get more into ROTH at top of 15% bracket

The $34k refinance is clearly a win and should be done. So the question is whether to take the $16k to contribute to Roth accounts this year and pay it off when? If you can pay it off next year and still max out Roth contributions next year out of cash, it's probably okay. You're effectively paying...
by MathWizard
Sat Jan 10, 2015 4:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Strategies to get more into ROTH at top of 15% bracket?
Replies: 5
Views: 830

Strategies to get more into ROTH at top of 15% bracket?

I'm just trying to get a few ideas about getting more money into ROTH IRAs, while staying within the 15% tax bracket. We are cash flowing college, one just got out and one will still be in for at least 2 1/2 yrs. We have refinanced three times, each time lowering rates, and decreasing term with larg...
by MathWizard
Sat Jan 10, 2015 3:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Strategies to get more into ROTH at top of 15% bracket?
Replies: 5
Views: 830

Re: Is there a bias in calculating safe withdrawal rate?

An example of the sort of paper that addresses the conundrum of the 4% withdrawal when the market has/is going up or down is this one: https://www.kitces.com/may-2008-issue-of-the-kitces-report/ And this is possibly a very helpful paper as well: https://www.kitces.com/blog/what-returns-are-safe-wit...
by MathWizard
Fri Jan 09, 2015 12:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is there a bias in calculating safe withdrawal rate?
Replies: 30
Views: 2270

Re: Can assuming more risk, increase returns?

Certainly assuming no or little risk assures low returns.

I have no risk of loss or liquidity risk for the money I have in my savings account, which is earning
a whopping 0.15% . (Yes about 1/6 of one percent.)
by MathWizard
Fri Jan 09, 2015 9:57 am
 
Forum: Investing - Theory, News & General
Topic: Can assuming more risk, increase returns?
Replies: 41
Views: 2526

Re: Is there a bias in calculating safe withdrawal rate?

Yes, I think you have a grasp on it. If we think of the equities market as growing a some long-term average rate (say 5% real), then the portion of your portfolio which is an index based on that market will overshoot and undershoot this long-term average. For low failure rate withdrawals (say 4% ove...
by MathWizard
Fri Jan 09, 2015 9:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Is there a bias in calculating safe withdrawal rate?
Replies: 30
Views: 2270

Re: Just left meeting with my advisor....

With those returns your advisor may be making even more than the 1.8% off you by put you into front loaded funds that he gets a commission on. If you are unsure about your ability to manage the funds , take 10% of the portfolio and manage it yourself perhaps with suggestions from this board. Then ne...
by MathWizard
Thu Jan 08, 2015 10:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Just left meeting with my advisor....
Replies: 57
Views: 7760

Re: 0.5% Refi Worthwhile?

Seems like a no-brainer. The only red flag would be getting that rate on a no cost refi. Make sure that they don't just mean no points. There are really costs to the loan, so in a true no cost, the bank is eating the costs, hoping to make it up in higher interest payments. That does not seem to be t...
by MathWizard
Wed Jan 07, 2015 11:38 am
 
Forum: Personal Finance (Not Investing)
Topic: 0.5% Refi Worthwhile?
Replies: 17
Views: 1020

Re: Poll: Favorite Coping Strategies for Volatility

Stay the course or rebalance.
by MathWizard
Tue Jan 06, 2015 8:08 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Favorite Coping Strategies for Volatility
Replies: 41
Views: 2647

Re: How Many Credit Cards do you have?

I have 3.

I had one for business and one for personal.
I added a rewards card for the $300
they gave me for signing up.

I keep the older ones active for the
length of time I have had credit ( it's
supposed to help credit score, which is apparently
being used as a proxy for strength of character.)
by MathWizard
Tue Jan 06, 2015 8:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Many Credit Cards do you have?
Replies: 99
Views: 12783

Re: Would you pay for this level of (bad) service?

I would ask them to fix it per the terms of the
warranty. I would hope that means for free,
but don't know.

I would not give them any more money.

What I would do is to chalk this up to learning
what kind of business this is and never do business with
them again.
by MathWizard
Tue Jan 06, 2015 8:00 pm
 
Forum: Personal Consumer Issues
Topic: Would you pay for this level of (bad) service?
Replies: 26
Views: 3083

Re: Do you generally spend more when using credit cards?

Yes, I have observed myself spending more when using a CC than using cash. It is not a ruinous amount, but small amounts do add up eventually. I use cash almost all the time. I do not like the "CC tax" that is imposed on merchants, which therefore gets passed along to all customers.
by MathWizard
Tue Jan 06, 2015 5:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you generally spend more when using credit cards?
Replies: 71
Views: 2694

Re: How hard can it be to do TurboTax again?

Another excellent reason to wait (at least a little bit) is that all the software programs tend to have some bugs they haven't caught in the early releases. They tend to catch those in the early weeks of the filing season, but folks who filed early can run into trouble. Unless your situation is ext...
by MathWizard
Mon Jan 05, 2015 3:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: How hard can it be to do TurboTax again?
Replies: 15
Views: 2075

Re: Is "stay the course" a commandment or a suggestion?

I view it as advice. If you cannot say with a fair degree of certainty that you will stay the course, then you have the wrong AA. Perhaps you might think of it instead as "take the long view", or "plan ahead". When I first started driving, I peered at the road immediately in fron...
by MathWizard
Mon Jan 05, 2015 2:48 pm
 
Forum: Investing - Theory, News & General
Topic: Is "stay the course" a commandment or a suggestion?
Replies: 60
Views: 4072

Re: Real Value of Nest Egg

Here is what I intend to do: If the P/E of the Russel 3000 is greater than 16, and we are not in a recession, I intend to "deflate" the amount of my equity position by multiplying it by 16 divided by that P/E , when I estimate whether I can retire. E.g If I had $200K in equities, and the P...
by MathWizard
Mon Jan 05, 2015 11:00 am
 
Forum: Investing - Theory, News & General
Topic: Real Value of Nest Egg
Replies: 24
Views: 1928

Re: [Poll] Is your generation better off than parents' or ki

I am better off than my parents. It's too soon to determine how my children will end up. The future is in their hands, and they are off to a great start, but the rest is up to them. +1 I expect that my children will be better off than me, especially financially, but agree that it is too soon to tel...
by MathWizard
Mon Jan 05, 2015 10:48 am
 
Forum: Personal Finance (Not Investing)
Topic: [Poll] Is your generation better off than parents' or kids'
Replies: 16
Views: 984

Re: How do you calculate your savings rate?

I claim to have a 42% savings rate. I include: 401k 401k company match taxable savings 529 contributions Additional home equity (principal paid) Cash savings (EF growth) I take this sum over our gross income. The upper bound is probably much less than 100% due to taxes. However, I use this method a...
by MathWizard
Sun Jan 04, 2015 3:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you calculate your savings rate?
Replies: 44
Views: 3954

Re: How hard can it be to do TurboTax again?

I think you'll do fine. We've done 1098-T's sale of taxable stock funds rent/royalties and a couple of schedule C's and had no problems with TurboTax. I agree with frugalinvestor's suggestion of having an accountant do it one year when you also do it. We did this with each business the first year an...
by MathWizard
Sun Jan 04, 2015 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: How hard can it be to do TurboTax again?
Replies: 15
Views: 2075

Re: Almost made it! From $ -530k net worth to $-9k this yr

can you elaborate a bit on your situation? Was this all in 2014? or when did you have negative $0.5M net worth? How did you reach that level of debt? Student loans? What was your income the last 5 years? What is your occupation? This all occurred from Jan 1 to Dec 31, 2014. Debt occurred from stude...
by MathWizard
Sat Jan 03, 2015 1:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Almost made it! From $ -530k net worth to $-9k this yr
Replies: 36
Views: 7347

Re: take pension with survivor benefits or not

survivor's benefits definitely. That is what I plan to do.
dm200 explained the reasoning well.
by MathWizard
Sat Jan 03, 2015 1:23 am
 
Forum: Personal Finance (Not Investing)
Topic: take pension with survivor benefits or not
Replies: 40
Views: 2989

Re: Best use of money?

Solo401K. You can start it for this year. If you are both working, you should both be funding retirement and both have
life/disability insurance.

Depending upon your income, student loans could even be deductible.
The savings from tax deferral will offset some of the 6.8% interest.
by MathWizard
Sat Jan 03, 2015 1:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Best use of money?
Replies: 20
Views: 2788

Re: Test drive new vehicle without sales pressure?

I've bought 3 of my last 4 cars from the same dealership, 2 of them the same day we test drove them. It's no surprise that I can test drive anything I want on their lot. Even at other dealerships I rarely have the salesman along on the ride. The only time I asked to take the car home for the weekend...
by MathWizard
Fri Jan 02, 2015 8:46 pm
 
Forum: Personal Consumer Issues
Topic: Test drive new vehicle without sales pressure?
Replies: 46
Views: 3417

Re: calculators ask for"spending"..pre tax or net after tax

They are asking for what you will withdraw.
You will need to include your best estimate of
the taxes. Think of this as your salary in retirement
without having to SS or Medicare taxes.
by MathWizard
Fri Jan 02, 2015 1:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: calculators ask for"spending"..pre tax or net after taxes
Replies: 2
Views: 391

Re: Last year before retirement more about spending than sav

I think this is a quite reasonable approach, just as budgeting into the retirement accounts for big ticket items. Sequence of returns risk is often mentioned on this board, and it sounds like that is what your are guarding against. You are getting big ticket items out of the way so those expenses ar...
by MathWizard
Fri Jan 02, 2015 1:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Last year before retirement more about spending than saving?
Replies: 38
Views: 1925

Re: Should I purchase a new car or wait?

I generally put more miles on vehicles, and recently put $3K into a slightly older vehicle with about the same mileage. However, my son uses it infrequently when he is home from college, so it do not make sense to get a new vehicle. Your wife may need a more reliable vehicle, so if your finances are...
by MathWizard
Wed Dec 31, 2014 3:10 pm
 
Forum: Personal Consumer Issues
Topic: Should I purchase a new car or wait?
Replies: 38
Views: 4248

Re: What Next?

1. Any issue with holding part of my emergency fund in a Roth IRA? 2. Should I use the Roth IRA towards the student loans? 3. Where can I improve? 1) No issue with having part of EF in ROTH IRA that is a good idea. See https://www.bogleheads.org/forum/viewtopic.php?f=2&t=152808 for a BH pool sh...
by MathWizard
Wed Dec 31, 2014 2:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Next?
Replies: 4
Views: 805

Re: Retirement planning and longer lifespans

I use the SS actuarial table at: http://www.ssa.gov/oact/STATS/table4c6.html Using that, I see for a husband and wife both age 65, There are 80,729 men and 88,081 women each out of an initial 100,000 that reach that age. Using that as the initial population, and going down to age 93, we see then tha...
by MathWizard
Wed Dec 31, 2014 2:37 pm
 
Forum: Investing - Theory, News & General
Topic: Retirement planning and longer lifespans
Replies: 10
Views: 742

Re: Why Does The 60/40 Work So Well?

To help define the question, I'll assume that you mean a fixed AA of 60% equities; 40% bonds in low cost index funds, and you assume that this stays the same over one's entire investing life. I don't think that 60/40 is materially better than 50/50 or 70/30, what is most important is staying the cou...
by MathWizard
Wed Dec 31, 2014 11:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Why Does The 60/40 Work So Well?
Replies: 31
Views: 4757

Re: Roth vs Traditional 401k for high-income earners

I am in the highest tax bracket (39.6%), and would likely be in a lower tax bracket at retirement (25%). I max my 401k, and my employer matches the first 50%. Most sites suggest a traditional 401k in my case, to get the deduction at my current high bracket and pay at a lower bracket during retireme...
by MathWizard
Tue Dec 30, 2014 4:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional 401k for high-income earners
Replies: 3
Views: 427

Re: SS Question...

Hello all, I have a question about a social security scenario I wanted to pitch out for my 61YO mom. Mom is married to a 65 YO gentlemen that has not started taking social security yet. At this point, their strategy is going to be for mom to start at 62 and DH to start at either 67 or 70 so if he s...
by MathWizard
Tue Dec 30, 2014 2:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Question...
Replies: 2
Views: 717

Re: How to save like the rich - housing

I don't agree that the implied causation (spending less on house=more investment success=being rich) is entirely false. As the figures show, most '1%' people (for which the cutoff IIRC is mid to high single digits $mil net worth, though that number is surprisingly hard to nail down, less certain th...
by MathWizard
Tue Dec 30, 2014 2:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to save like the rich - housing
Replies: 14
Views: 4176
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