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Re: Conservative Assumptions For Retirement Calculators

I typically use 4% real as my estimate and do everything in real dollars. I also assume only 75% of the SS estimate to be safe. Rick Ferri's company Portfolio Solutions does a 30 year forecast every year, you could use the estimates from that together with your AA to get an estimate of what you migh...
by MathWizard
Thu Jul 24, 2014 3:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Conservative Assumptions For Retirement Calculators
Replies: 10
Views: 597

Re: Rich Spouse, Poor Spouse

Doesn't happen in my house. We're either both wealthy or neither is. Some state income taxes are like ours and married filing separately is sometimes better than joint. I used to do it both ways on paper, but TurboTax does that for me now. I've never had MFS beat joint on the federal return. The onl...
by MathWizard
Thu Jul 24, 2014 1:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rich Spouse, Poor Spouse [Tax filing apportionment]
Replies: 50
Views: 2811

Re: Bonds beat stocks over the last 15 years

Picking the starting date in 1999 , so that this includes the 2001 crash, the 2003 crash and the 2008/2009 crash but does not include the huge run-up in equities in the late 1990's certainly makes equities look bad, but not by much. VTMSX shows 9.6% return since its inception in 4/27/1992, much bett...
by MathWizard
Thu Jul 24, 2014 12:03 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds beat stocks over the last 15 years
Replies: 37
Views: 2380

Re: Where is your brokerage account?

Are you looking to invest in individual stocks? I just use my 403b and my employer sends money to it each pay period. Nothing simpler than that. I set up an automatic monthly pull from a bank account with TIAA-CREF for a mutual fund taxable account years ago, before ROTHs were available, but now I j...
by MathWizard
Thu Jul 24, 2014 11:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Where is your brokerage account?
Replies: 35
Views: 1777

Re: Here's another "where should I retire" thread

Suggestions all relatively small college towns. with international airports with an hour's drive. Ames , Ia. Des Moines airport 30 min away Get to see lots of pres. candidates state half red/ half blue Is that purple? Lawrence, Kansas. Kansas City airport about one hour away Red state I believe Boul...
by MathWizard
Wed Jul 23, 2014 11:33 pm
 
Forum: Personal Consumer Issues
Topic: Here's another "where should I retire" thread
Replies: 93
Views: 3838

Re: If you consistently outperform (pre-fees), why not lower

Some people are willing to pay higher fees for what they perceive as better service. Espresso whenever they come in. Mail Fedex'd to you because you are so important. Minimum $500K investment so you don;t have to deal with the riff-raff. Offices that ooze money. People in suits and ties that look li...
by MathWizard
Tue Jul 22, 2014 3:59 pm
 
Forum: Investing - Theory, News & General
Topic: If you consistently outperform (pre-fees), why not lower ER?
Replies: 35
Views: 1136

Re: US car rental insurance for foreign tourist ?

I went to France, and bought the insurance. Insurance is for low probability, high cost events, which precisely describes this situation. Liability insurance is very important, even if the accident is not your fault, since some states are no-fault states and even then, some drivers are uninsured/und...
by MathWizard
Tue Jul 22, 2014 1:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: US car rental insurance for foreign tourist ?
Replies: 9
Views: 802

Re: Reverse Savings Rates

This is just not practical for the majority of young people just starting out. Starting wages of $80K+ are few and far between, usually in HCOL places, and usually after lengthy times in graduate school piling up loans. When you are young is when you have kids, and they are expensive too. After my P...
by MathWizard
Tue Jul 22, 2014 1:33 pm
 
Forum: Investing - Theory, News & General
Topic: Reverse Savings Rates
Replies: 5
Views: 982

Re: P/E Ratio: How do YOU interpret/use it?

In recessions, the P/E ratio can skyrocket when earnings drop to miniscule levels while companies adjust to smaller demand. I suspect that companies sometimes also take advantage of a recession to take one-time writedowns on their balance sheet. When not in a recession however, a high PE suggests lo...
by MathWizard
Tue Jul 22, 2014 1:23 pm
 
Forum: Investing - Theory, News & General
Topic: P/E Ratio: How do YOU interpret/use it?
Replies: 26
Views: 1323

Re: Computer Problem

One suggestion would be to open up the computer and clean out the dust and maybe filter if it has one. I'd also check to make sure the case fan and/or any other cooling fans are working. The video card or on-board graphics may be getting too hot. If this is a laptop, you may need a chill-pad to keep...
by MathWizard
Mon Jul 21, 2014 6:08 pm
 
Forum: Personal Consumer Issues
Topic: Computer Problem
Replies: 15
Views: 1201

Re: how often do you look at your account

At least twice a week, I'm sorry to say.
Nothing to do with fraud, just checking progress.

Probably too often.
by MathWizard
Mon Jul 21, 2014 5:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: how often do you look at your account
Replies: 70
Views: 3536

Re: Hw many credit cards to own?

I have four, and a fifth is on its way. I've become spoiled by receiving cash back and sign-up offers, and now wish to maximize rewards in all major spending categories. Yes, now that you mention it, I think the $100 and $300 sign-up offers are what got me into newer cards, not the rewards points. ...
by MathWizard
Mon Jul 21, 2014 5:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 68
Views: 3751

Re: Hw many credit cards to own?

I own 4. I have two old ones. I used one for business expenses, one for personal expenses to keep everything separate. These are my two oldest. They are not rewards card but I keep them it for length of credit history. This can help credit score. I have two new ones, both rewards cards, to get some ...
by MathWizard
Mon Jul 21, 2014 2:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 68
Views: 3751

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

I should add that since my 403b charges a higher ER than equities in my Vanguard ROTH, I place equities in the ROTH, and have all the bond/fixed income in my 403b. I expect greater growth in equities, so the lower ER should mean lower expenses. So I guess you could say I Expense Adjust the placement...
by MathWizard
Mon Jul 21, 2014 10:50 am
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 76
Views: 3257

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

I don't for two reasons: Age may have something to do with it. For a younger person #1 may not apply. 1) The ROTH is small relative to tax deferred, so the adjustment would not change things much. I've been contributing to tax deferred for much longer than the ROTH has been available. ROTH max limit...
by MathWizard
Sun Jul 20, 2014 6:53 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 76
Views: 3257

Re: retirement fund or college fund?

Put it in a ROTH if you can. You can always withdraw contributions, so the money is not locked up. I started when my oldest was 11. I put money into a ROTH with the intention of pulling contributions later. I kept increasing savings % each year. By the time college came, I was maxing ROTH, and savin...
by MathWizard
Fri Jul 18, 2014 11:21 am
 
Forum: Investing - Help with Personal Investments
Topic: retirement fund or college fund?
Replies: 15
Views: 850

Re: If you own a car, do you have a car payment?

Out of 14 cars, all used, and only two financed. Those were while I was in Grad School *, when cash flow was an issue. Other than that, I've only borrowed for houses, grad school, and engagement/wedding rings (again while I was in grad school). All have turned out well (30th anniv. two years ago). I...
by MathWizard
Fri Jul 18, 2014 11:00 am
 
Forum: Personal Consumer Issues
Topic: If you own a car, do you have a car payment?
Replies: 110
Views: 6344

Re: Who else hates choosing a car?

I real don't hate it. I try to keep up on the used cars in the range of miles/age that is in my price range. When it's time to change cars, I'm got a good feel for the market and can get one pretty quickly. I test drive a few cars and rank them in order of desirability, start from the best deal, and...
by MathWizard
Thu Jul 17, 2014 4:36 pm
 
Forum: Personal Consumer Issues
Topic: Who else hates choosing a car?
Replies: 75
Views: 6315

Re: Withdrawal Rate and Net Worth

I only use it in the sense of a worst case analysis. Some in this forum argue against a 4% SWR. I plan to use 4%, and if I am wrong, or if we encounter a triple whammy of poor stock market, high inflation, and unexpected expenses will always have the value of the house as a backstop. If my wife live...
by MathWizard
Thu Jul 17, 2014 4:20 pm
 
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate and Net Worth
Replies: 16
Views: 1790

Re: Minimizing Capital Gain Tax

I'm afraid there is likely not any "good" answer to our situation. We have a daughter who is four years away from college. The funds that we will be using for those expenses will be from two Vanguard taxable accounts. We have a very low basis in both funds so would incur a pretty hefty hi...
by MathWizard
Thu Jul 17, 2014 12:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Minimizing Capital Gain Tax
Replies: 10
Views: 1138

Re: Millennials (with jobs) are super-saving their retiremen

To be fair with all the "that's not super-saving" comments, many millennials (such as myself) are underpaid because of the downturn. I started at my job 7 years ago at $32k and am only at $43k now. Based on my research I should be making AT LEAST $10k more and in reality it should be $20k...
by MathWizard
Thu Jul 17, 2014 10:55 am
 
Forum: Investing - Theory, News & General
Topic: Millennials (with jobs) are super-saving their retirement
Replies: 65
Views: 9118

Re: Car insurance... do you include car rental?

I don't get that coverage.

The only time I needed another car, the body shop gave me a loaner for 3 days.
Not as nice a car as mine, but this was at no cost to me.
by MathWizard
Wed Jul 16, 2014 4:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Car insurance... do you include car rental?
Replies: 33
Views: 2119

Re: If you are currently leveraged...when to deleverage?

You are asking how to change AA. I would do so at once, especially if this is not in a taxable account. Even if it was in taxable, I'd be tempted to take immediate action. This would be the same thing as if you had set an AA and it got out of balance while you weren't looking. Then you'd rebalance q...
by MathWizard
Wed Jul 16, 2014 4:06 pm
 
Forum: Investing - Theory, News & General
Topic: If you are currently leveraged...when to deleverage?
Replies: 2
Views: 679

Re: Refinance ?

If it is truly no-cost, definitely do it. The no cost may just be that they are rolling closing costs into the loan. I don't know if I have seen any no-cost 30 year fixed refi's, usually no-cost are Home Equity Loans of short duration, where you have a very low loan to value ratio. Even with closing...
by MathWizard
Wed Jul 16, 2014 3:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Refinance ?
Replies: 14
Views: 865

Re: Millennials (with jobs) are super-saving their retiremen

The survey results are what I would expect, considering that the laws were changed a few years ago to have the default choice be to automatically enroll in a 401k when starting a new job. I believe the default investment is a target retirement fund. So even those who never gave retirement planning ...
by MathWizard
Tue Jul 15, 2014 6:06 pm
 
Forum: Investing - Theory, News & General
Topic: Millennials (with jobs) are super-saving their retirement
Replies: 65
Views: 9118

Re: Moving From Bonds Into Stocks

So, market timing... good or bad... is that what you're wondering here? Have you read around the Boglehead forum much, Nerd? :D :wink: I didn't know taking this approach would be considered market timing. Now I do and that's good to know. Judging from the responses I now see how re-balancing really...
by MathWizard
Tue Jul 15, 2014 3:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Do During A Correction In Stocks?
Replies: 31
Views: 3663

Re: Insurance premiums for renewals versus current

I've seen this too, mainly in my home insurance. A large part of the profitability of insurance companies comes from investing the float (the difference between what has been collected in premiums and that paid out in claims). The bulk of these investments are in bonds due to the irregular nature of...
by MathWizard
Mon Jul 14, 2014 3:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Insurance premiums for renewals versus current
Replies: 11
Views: 1046

Re: Anyone here flip houses?

You would be be committing significant capital into illiquid investments and doing it part-time. How will you sell the house? If this were easy, many would do it, especially experienced builders. I would develop a solid business plan, including how you will identify properties and how you'll sell th...
by MathWizard
Sun Jul 13, 2014 11:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone here flip houses?
Replies: 40
Views: 4516

Re: SAT preparation

This thread made me look at the 1995 recentering. Any old school score of 730 or more on the verbal became a 800; any old school score of 780 or more on the math became an 800. Thus a properly divided score of 1510 became a 1600. Actually, for the combined score, any score of 1490 or more became a ...
by MathWizard
Sun Jul 13, 2014 10:45 pm
 
Forum: Personal Consumer Issues
Topic: SAT preparation
Replies: 30
Views: 2293

Re: Your net worth/investments when you started saving less

It hasn't happened for me yet, but I did loosen up a little, spending a little bit of short term savings, because life is short, especially for males in my family. Two trips to Europe in the last 4 years. Otherwise still pretty frugal, and savings a slightly higher percentage of income each year.
by MathWizard
Sun Jul 13, 2014 6:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Your net worth/investments when you started saving less
Replies: 17
Views: 2364

Re: SAT preparation

I didn't do any prep and did fine on PSAT , but back then I'd never heard of prepping for the tests. I just got prep books from Barnes & Noble My oldest refused to study for the PSAT and ended up 94th percentile the youngest did and got a 99th percentile and is a Merit Scholar Both were 99th per...
by MathWizard
Sat Jul 12, 2014 11:57 pm
 
Forum: Personal Consumer Issues
Topic: SAT preparation
Replies: 30
Views: 2293

Re: "Order of operations" for education tax credits

Op, The rules are somewhat frustrating on Education tax credits. We ran into the same situation, and couldn't claim the full credit. See IRS pub 970 for details. The 1098-T we got showed 0 for qualified expenses, because the scholarships were applied to qualified expenses first by the institution. I...
by MathWizard
Thu Jul 10, 2014 2:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: "Order of operations" for education tax credits
Replies: 2
Views: 624

Re: Bought my first used car yesterday (at age 58)

I've always bought used cars. You did it the right way. Look for what you want, but don't get married to a single car. State your price and be ready to walk if you don't get it. The salesman can't jerk you around then. Don't waste your time chasing the "best" deal. The only people who catc...
by MathWizard
Wed Jul 09, 2014 3:30 pm
 
Forum: Personal Consumer Issues
Topic: Bought my first used car yesterday (at age 58)
Replies: 1
Views: 870

Re: Unknown Time Horizon

Does anybody else have an unknown time horizon? Typically one would say "I want to retire around 62 years old, give or take a few years" and based on that, you can come up with a reasonable risk tolerance, and therefore a reasonable AA, and reasonable savings rate to achieve your goals. I...
by MathWizard
Wed Jul 09, 2014 3:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Unknown Time Horizon
Replies: 12
Views: 777

Re: How does a commercial banker define liquidity?

... Name of bank that lends on the basis of faith? other than George Bailey's old Building and Loan. :wink: I don't know about a bank, but a credit union may have more leeway. I was 1 month from a PhD when my car conked out, and I needed to replace it. I had a job lined up in the same city, but was...
by MathWizard
Wed Jul 09, 2014 3:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: How does a commercial banker define liquidity?
Replies: 8
Views: 776

Re: POLL: How Old is Your Newest Motor Vehicle?

So I'm not the only one who thinks cars are a huge expense.

In some cases when using high interest financing it could exceed
lifetime housing costs.
by MathWizard
Tue Jul 08, 2014 4:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: POLL: How Old is Your Newest Motor Vehicle?
Replies: 37
Views: 2398

Re: When do you "limit" saving and start to spend more?

This subject is not taboo at this site, and in fact comes up often. Usually stated as the goal is not to be the richest person in the cemetery. The biggest problem with the extra spending is getting accustomed to the higher lifestyle, which requires extra savings to support later in life. Other prob...
by MathWizard
Tue Jul 08, 2014 2:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: When do you "limit" saving and start to spend more?
Replies: 39
Views: 3847

Re: When you retire you plan to?

We'll stay in the current house, and later either buy a handicap accessible built house or rent such a house/apartment. Likely either my wife or I will get to a point where we will not want stairs, a big house to clean, a large lawn to care for, and may well at least occasionally need wide doors on ...
by MathWizard
Mon Jul 07, 2014 7:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: When you retire you plan to?
Replies: 44
Views: 3359

Re: Dining table

Mine is solid oak with 2 internally stored leaves going to 118 in. I bought 10 nice matching chairs. The chairs cost me more than the table. The table has room for 6 chairs without the leaves in, so 4 of these go with the kitchen table. For large gatherings, I use all 10 in the dining room and add i...
by MathWizard
Mon Jul 07, 2014 12:38 pm
 
Forum: Personal Consumer Issues
Topic: Dining table
Replies: 20
Views: 1464

Re: taxes on family loan for mortgage downpayment?

... I always understood that any banking transaction in excess of $10k was reported to IRS, which was the basis of my concern. ... I believe the $10K and above reporting requirement applies only to CASH transactions. So unless relative is bringing in a suitcase full of cash, this would not apply. S...
by MathWizard
Thu Jul 03, 2014 5:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: taxes on family loan for mortgage downpayment?
Replies: 10
Views: 766

Re: [Poll] If all active funds have ER= 0.05%, will you buy

None except for one: VPGDX managed payout fund (ER .34%), which Vanguard lists as an active fund, unless someone has another Vanguard fund that would send a check every month to my bank account and take care of everything for me. I am considering this as part of my base income for those years after ...
by MathWizard
Thu Jul 03, 2014 5:41 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] If all active funds have ER= 0.05%, will you buy any?
Replies: 55
Views: 2660

Re: Do you tell your kids how much you make?

I haven't hidden it from my kids, but I did ask them not to reveal it to others. I just used round numbers. If they are starting high school, they will be finding out soon anyway if they go to college and you fill out the FAFSA. One thing that my kids don't know is our wealth. Retirement assets do n...
by MathWizard
Thu Jul 03, 2014 2:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you tell your kids how much you make?
Replies: 58
Views: 5901

Re: Hitting "The Number" too early

It is better to calculate an income stream than a number. ..... All due respect to your username, the people who come up with "a number" are doing so by figuring out what safe withdrawal rate they're comfortable with, subtracting out SS and pensions, and figuring out what portfolio number...
by MathWizard
Thu Jul 03, 2014 11:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Hitting "The Number" too early
Replies: 49
Views: 5369

Re: Hitting "The Number" too early

It is better to calculate an income stream than a number. I wrote my own calculator which instead of computing a number. It calculates a constant income stream. All calculations are in real dollars, not nominal. I : 1) subtract from my current portfolio balance all current debt/expenses (mortgage/co...
by MathWizard
Wed Jul 02, 2014 1:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Hitting "The Number" too early
Replies: 49
Views: 5369

Re: Do you set financial goals annually?

Yes, I do, but I lump all retirement goals together. I keep track of where I am at at least monthly. I also annually review/adjust charitable giving, Oct. project taxes in Nov. to see if I need to make any late year adjustments (pre-pay prop tax, etc.) adjust tax deferred if I am near the edge of a ...
by MathWizard
Wed Jul 02, 2014 1:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you set financial goals annually?
Replies: 44
Views: 2386

Re: finding an adviser/handholder for wife

OP, Best of luck with the surgery. Just some things to consider: 1) Suggest she choose a SPIA (you can even suggest one) or 2) a managed payout fund, like Vanguard's VPGDX these would send a check (electronic deposit) each month. 3) A CPA to handle taxes, and maybe tax planning. 4) Automate bill pay...
by MathWizard
Wed Jul 02, 2014 11:41 am
 
Forum: Personal Finance (Not Investing)
Topic: finding an adviser/handholder for wife
Replies: 15
Views: 2598

Re: what is my tax bracket after retirement

You might also want to look at the SS benefit taxation calculator mentioned in:

http://www.bogleheads.org/forum/viewtopic.php?f=2&t=141675

Assume 15% bracket.

Taxable income needs to be beyond 73K for MFJ for the 2014 tax year.

If you are over $73K, put in 25%.
by MathWizard
Tue Jul 01, 2014 4:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: what is my tax bracket after retirement
Replies: 11
Views: 1527

Re: [Poll] Which do you include in Asset Allocation?

Why do you have:
debt (bonds, CD, savings..) ?

I would not use the label debt for bonds, CDs and savings.

I would call savings and CDs cash, and separate them from bonds.
CDs and cash have no risk other than inflation risk.
You can lose money with bonds.
by MathWizard
Tue Jul 01, 2014 3:55 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] Which do you include in Asset Allocation?
Replies: 41
Views: 2632

Re: SS Gap Until 70?

Depends on the growth you assume for the portfolio over the 10 years. I guess a lot depends on what you believe will happen to the $580,000 that will remain invested for a timeframe of greater than 10 years. Then the question of can that portfolio generate enough income once SS kicks in. Another wa...
by MathWizard
Mon Jun 30, 2014 2:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Gap Until 70?
Replies: 29
Views: 2426

Re: What is simple enough to understand, and therefore inves

Thanks for all the comments... I do understand the basic boglehead philosophy... three fund portfolio, etc. But even trying to execute that philosophy requires quite a bit of study... whether to DCA or lump sum... taxable or tax deferred space... rebalancing ... ETFs and how to execute an order. In...
by MathWizard
Mon Jun 30, 2014 2:28 pm
 
Forum: Investing - Theory, News & General
Topic: What is simple enough to understand, and therefore invest in
Replies: 27
Views: 1892
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