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Re: "Americans Aren't Saving Enough for Retirement"

The Logan's Run version of America seemed to resolve the retirement issue. Of course, I am past the age of renewal, so I probably shouldn't have mentioned it. That being said, everyone that I talk to about retirement seems to either think of it as a mythical beast in some distant land because it is...
by MathWizard
Wed Mar 04, 2015 2:28 pm
 
Forum: Investing - Theory, News & General
Topic: "Americans Aren't Saving Enough for Retirement"
Replies: 26
Views: 2107

Re: Betting on your life expectancy with an SPIA

> I know the primary reason to have one is having marginal or underfunded retirement accounts Not sure I would agree with that. ONE important reason to get an SPIA with PART of your healthy retirement savings is to ensure that you cannot outlive a "floor" income. As far as the "betti...
by MathWizard
Wed Mar 04, 2015 1:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Betting on your life expectancy with an SPIA
Replies: 5
Views: 230

Re: What percentage of your total net worth is your home?

Hugely correlated with age. Also do you mean "equity in home, or value of your home." E.g. 100K in retirement funds, 100K mortgage, 200K house. Do you answer 50% or 100%? 15 years ago, I'd have had to say nearly either 50% or 100% depending on the answer above. Today I am at abut 15%. More...
by MathWizard
Wed Mar 04, 2015 1:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: What percentage of your total net worth is your home?
Replies: 12
Views: 558

Re: Basic question on tax-differed growth and deductions

Simplified example: 25% tax bracket, save $10K in an index fund which earns exactly 10% real (inflation adjusted) annually, compounded annually. Assume you retire in 25% tax bracket. (The same principle applies to any other interest rate, 10% is just easier.) The initial investment for the tax defer...
by MathWizard
Tue Mar 03, 2015 2:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Basic question on tax-differed growth and deductions
Replies: 4
Views: 216

Re: Professional tax advice - when is it worth it?

Hello Boglers! I realize this question may be nearly impossible to answer, but I'm struggling with the decision to fork over a fair bit of cash for competent tax advice vs using my own research and TurboTax. My situation is slightly complicated. Owing to an ISO exercise, I owe federal and state AMT...
by MathWizard
Mon Mar 02, 2015 3:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Professional tax advice - when is it worth it?
Replies: 23
Views: 1511

Re: Help- I keep investing my emergency fund in the stock ma

Are some of your investments in ROTH IRAs?

RPTH contributions can be part of your EF. Just make sure that
your ROTH balance could drop in a recession and it would still be at least
as much as your contributions.
by MathWizard
Mon Mar 02, 2015 2:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help- I keep investing my emergency fund in the stock market
Replies: 18
Views: 2213

Re: Do you consider mortgage payments as savings?

I consider the mortgage payment as savings, and did the same for student loans. (Not consumer debt, and I had very little of that.) You dig a big hole increasing your potential income especially with professional degrees. Now you are increasing your net worth every month as you pay off the loans. Wh...
by MathWizard
Sat Feb 28, 2015 1:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 265
Views: 10546

Re: Convincing older relative to open online savings account

Let them keep the money locally. 1% is not that much of a difference for the peace of mind. I don't use an online bank either. (Of course I don't keep 1/3 of my portfolio in cash either.) If they want it in the local bank or Credit union rather than in bonds, I'd suggest at a CD ladder. I can get .7...
by MathWizard
Wed Feb 25, 2015 6:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Convincing older relative to open online savings account
Replies: 34
Views: 1468

Re: Is the first 100k really the hardest?

Let's assume you your salary went up at the rate of inflation, and that you get real return of 6% Then the doubling time for an investment is 12 years (rule of 72). Let's also assume you save 15% of your salary. The first 12 years (the doubling time) you contribute 1.8x salary and earn about .8x sal...
by MathWizard
Wed Feb 25, 2015 3:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is the first 100k really the hardest?
Replies: 54
Views: 7811

Re: Should I shut off water in a vacant home in winter?

You would have to drain the system if you shut the heat off, and you'd have to put antifreeze in all drain taps and toilets (an RV store would have the proper jugs of solution). I would leave the heat on. Without doors opening and closing the heat loss should not be so bad. You could always put plas...
by MathWizard
Wed Feb 25, 2015 2:37 pm
 
Forum: Personal Consumer Issues
Topic: Should I shut off water in a vacant home in winter?
Replies: 15
Views: 1382

Re: What age do you guys plan to retire?

Big difference for those who took lot of time/school/debt to increase income. You dig a deep hole, and start later, but then have a large income to make up for it. It takes a while to clear the debt, and this means starting to save for retirement much later. I expect to be FI (to our current lifesyt...
by MathWizard
Sun Feb 22, 2015 2:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: What age do you guys plan to retire?
Replies: 143
Views: 8578

Re: What % of your gross income do you spend on mortgage/ren

6.6% of household income on mortgage refinanced from 30 to 20 year payoff (5 yrs to go!!)

3% for prop tax/ins

Don't have a figure handy for utilities
by MathWizard
Sun Feb 22, 2015 1:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: What % of your gross income do you spend on mortgage/rent?
Replies: 155
Views: 8729

Re: What language do EU partners use to communicate?

I suspect English. That is as close to a universal international language that there is.

In the past, educated people would have spoken Latin.
by MathWizard
Fri Feb 20, 2015 4:42 pm
 
Forum: Personal Consumer Issues
Topic: What language do EU partners use to communicate?
Replies: 12
Views: 1038

Re: When would you retire money no object?

If money were no object, then I would do tings for the satisfaction of doing them. So if by retire, you mean stop working for someone else, and work for myself, then the answer would be as soon as possible. Is Buffet working or retired? I'd probably work with kids to show them how education could he...
by MathWizard
Tue Feb 17, 2015 1:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: When would you retire money no object?
Replies: 64
Views: 3275

Re: Traveling by car - estimating costs

I've figured about 40 to 50 cents per mile while the car is in good enough shape
that I would take it on 1000 mile trips.

That is with buying cheap cars and running them into the ground.
by MathWizard
Mon Feb 16, 2015 5:05 pm
 
Forum: Personal Consumer Issues
Topic: Traveling by car - estimating costs
Replies: 28
Views: 1508

Re: Savings Rate Methodology

Net worth includes stuff like principal residence equity, motor vehicles, and a gold class ring, none of which is of much utility in achieving Financial Independence. But do as you please... I should have been more clear. What I calculate is not really what accounted call net worth. Perhaps it woul...
by MathWizard
Mon Feb 16, 2015 11:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Savings Rate Methodology
Replies: 22
Views: 1872

Re: Expecting a big inheritance - Should it change my life?

Barring problems down the line, it is highly likely that my kids will probably inherit in the neighborhood of 1/4 to 1/2 Million each in today's dollars. That is probably par for the course (or low) for members on this board. From my standpoint, I hope that it does NOT change my kid's lives other th...
by MathWizard
Sun Feb 15, 2015 4:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Expecting a big inheritance - Should it change my life?
Replies: 124
Views: 7903

Re: Savings Rate Methodology

I'm more interested in % change in net worth.

That can come from elimination of debt, contributions to investment accounts
and investment earnings. I also save for short term fluctuation in expenses, but that
is just smoothing out expenses throughout the year.
by MathWizard
Sun Feb 15, 2015 1:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Savings Rate Methodology
Replies: 22
Views: 1872

Re: Quick question on tax-advantaged space

You can pull Roth IRA contributions out tax and penalty free (earnings have to remain), but do so only in an emergency. This was always my line of thinking as well. In that case, you'd go with Plan A in my situation? Plan A. It is what I do. If you are going to pull 11K from the ROTH, that is not m...
by MathWizard
Thu Feb 12, 2015 3:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Quick question on tax-advantaged space
Replies: 26
Views: 1130

Re: College savings costs / number

mathwizard: Full ride is supposed to mean tuition, room and board. Not books though. Full tuition is just full tuition. Can be confusing nomenclature like nonstop versus direct flights. Full ride is definitely better than full tuition. I suspect neither are in my future... Sigh. He is getting the t...
by MathWizard
Thu Feb 12, 2015 2:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: College savings costs / number
Replies: 120
Views: 6380

Re: PETITION FOR Jack Bogle's Presidential Medal of Freedom

Go Jack!


edited: Originally commented that vote did not appear, but it did after several minutes.
Maybe there is a built in delay for some reason.
by MathWizard
Wed Feb 11, 2015 6:51 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: SIGN PETITION FOR Jack Bogle's Presidential Medal of Freedom
Replies: 168
Views: 9476

Re: A question about LTC insurance that no one asks

... A lot of this is a question of trust in a company which does not necessarily have its interests aligned with mine. Aside from wishing to remain in the highly-regulated and therefore reliably-profitable insurance business, when is an insurer's interest ever aligned with a claimant's? PJW I am in...
by MathWizard
Wed Feb 11, 2015 6:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: A question about LTC insurance that no one asks
Replies: 19
Views: 1666

Re: am I mess?

omg33yrs wrote:No, only debt we have is the car loan
Do not pay down subsidized loans as long as subsidy lasts (rate 0-3%)
scartching my head


I assume the subsidized loan refers to student loans, but you have not indicated that
you have any student loan debt.
by MathWizard
Wed Feb 11, 2015 4:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Am I a mess?
Replies: 31
Views: 3821

Re: A question about LTC insurance that no one asks

Like a lot of people, I'm on the fence about LTC insurance. ... It seems most of the people who are against purchasing LTC insurance give reasons such as: -- "no one in my family lives that long" -- "I'm adding more to my retirement savings so I can self-insure" -- "I don't...
by MathWizard
Wed Feb 11, 2015 4:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: A question about LTC insurance that no one asks
Replies: 19
Views: 1666

Re: College savings costs / number

It is a choice to spend that much money. My son got accepted to a good out of state school he could go to for free, full ride, due to being a National merit finalist but there are few things I would rather spend my money on than a fantastic top level undergraduate experience for him. My son got a &...
by MathWizard
Wed Feb 11, 2015 1:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: College savings costs / number
Replies: 120
Views: 6380

Re: Is "Financial Independence" the new "Retirement?"

It's hard to dispute that gaining financial independence early in life is a valid aspirational goal, but I'm surprised to see it promoted as something Millennials uniquely crave or have the potential to realize. Is this really a new concept? They did point out that this idea has gained traction due...
by MathWizard
Tue Feb 10, 2015 4:58 pm
 
Forum: Investing - Theory, News & General
Topic: Is "Financial Independence" the new "Retirement?"
Replies: 52
Views: 6739

Re: How to make this fair: gifting to kids with different me

We are helping each kid in different ways. S is definitely kid A with excellent full-time job, significant earnings, savings & retirement accounts. We loaned him money at the lowest interest rate that IRS would allow (40 basis points) and also loaned him money for his solo 401K. He also travels...
by MathWizard
Mon Feb 09, 2015 5:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to make this fair: gifting to kids with different means
Replies: 108
Views: 8899

Re: Car issues. [2009 Cadillac CTS - fix or sell]

I agree with Alex. You need to get a different car. The cost of repair is probably more than what the car is worth. Since you say that all the oil was gone from your engine at least twice, I am surprised the engine still works. If you were to keep the car, you would need to check the oil every time ...
by MathWizard
Mon Feb 09, 2015 2:59 pm
 
Forum: Personal Consumer Issues
Topic: Car issues. [2009 Cadillac CTS - fix or sell]
Replies: 56
Views: 3513

Re: 4% rule with % of current value ceiling

MathWizard, you are right that one could have avoided all this uncertainty and got approximately $60K all along (= $20K S.S. + $40K inflation-adjusted SPIA). But, this implies a huge loss in liquidity (putting the entire $1M* in a SPIA which carries a small credit risk) and no chance of any bequest...
by MathWizard
Mon Feb 09, 2015 11:22 am
 
Forum: Investing - Theory, News & General
Topic: 4% rule with % of current value ceiling
Replies: 27
Views: 1835

Re: Expense Ratios Of S&P 500 Index Funds In US

Vanguard does not provide as much hand- holding which is a way they keep costs down. I appreciate that. However some people would like to have more hand-holding. I'm comfortable, though not crazy about edelivery E.G we have had IRAs at Tiaa-Cref for years . With the new rate classes she would now be...
by MathWizard
Sun Feb 08, 2015 1:55 pm
 
Forum: Investing - Theory, News & General
Topic: Expense Ratios Of S&P 500 Index Funds In US
Replies: 8
Views: 561

Re: Worth Upgrading to LED Lighting?

From incandescent to CFL on the basis of cost the call is easy. Even in low use areas they have paid for themselves fairly quickly. Originally CFLs were bulky and sometimes a 60w equiv CFL would not fit where a 60 w incandescent would, now with mini twists, I can fit 75w equiv in and sometimes even ...
by MathWizard
Sun Feb 08, 2015 7:37 am
 
Forum: Personal Consumer Issues
Topic: Worth Upgrading to LED Lighting?
Replies: 45
Views: 3502

Re: The Emergency Fund Revisited

Suppose a 20-year old who had just finished a year in his first job came to you for advice. "I have $5,000 in the bank earning like nothing and I want it to be working harder for me. I'm thinking of putting it into Berkshire Hathaway stock because I've heard it's a good solid company. What do ...
by MathWizard
Sat Feb 07, 2015 6:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Emergency Fund Revisited
Replies: 20
Views: 1884

Re: Difference between an "exemption" and a "deduction?"

When below phaseouts and AMT You get personal exemption based on filin status 1 or 2 for MFJ + 1 per dep so PEs make a 0% tax bracket based on household size. I seem to remember different tax tables for different filing statuses where the first so many 50 increments were 0 for things like MFJ Deduct...
by MathWizard
Sat Feb 07, 2015 6:11 pm
 
Forum: Investing - Theory, News & General
Topic: Difference between an "exemption" and a "deduction?"
Replies: 11
Views: 767

Re: 4% rule with % of current value ceiling

With any withdrawal method, because you don't know how long you will live, you are virtually guaranteed to either have a shortfall, so spending must drop because your portfolio ran out, or you take a huge amount of money to the grave with you. You can avoid all the uncertainty with an inflation adju...
by MathWizard
Fri Feb 06, 2015 10:38 am
 
Forum: Investing - Theory, News & General
Topic: 4% rule with % of current value ceiling
Replies: 27
Views: 1835

Re: Found old stock certificate

Does anybody give out paper stock certificates anymore?

If not, maybe a nice frame around it and maybe a metal plate for a caption with something like
"Triton - Silent Partner."
and hang it in your den.
by MathWizard
Wed Feb 04, 2015 2:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Found old stock certificate
Replies: 10
Views: 1501

Re: Why no talk about investing in Timber?

I've noticed on the GMO forecast over the past few years, Timber investments has always been forecasted with consistently high returns (I'm not sure about the actual returns since I've not looked at Timber investments before). But given that GMO forecast has been somewhat accurate historically, and...
by MathWizard
Wed Feb 04, 2015 2:27 pm
 
Forum: Investing - Theory, News & General
Topic: Why no talk about investing in Timber?
Replies: 14
Views: 1297

Re: TIAA CREF jump in fees

My wife and I have STOCK account IRAs at TIAA-CREF wich are going up to .66%. We will be transferring to VTSAX
at 0.05% .

I don't believe I have an alternative in my normal RA, but we are in the lowest R3 as an institution.
I'd still move it if I could.
by MathWizard
Tue Feb 03, 2015 6:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIAA CREF jump in fees
Replies: 11
Views: 1181

Re: New Job. Need help with deciding on contributions

$1K is too small an EF. Instead of tIRA and 529 plan, I would contribute more to the 403b, and contribute to a ROTH. You can withdraw ROTH contributions without penalty or taxes at any time (though you cannot put them back in later.) This allows the ROTH to act as a second tier EF. Conversions from ...
by MathWizard
Tue Feb 03, 2015 12:07 am
 
Forum: Investing - Help with Personal Investments
Topic: New Job. Need help with deciding on contributions
Replies: 6
Views: 581

Re: Are car loans really that bad?

My two car loans were for 18 and 12% I certainly have an aversion to car loans. They also increase cash flow req. so the EF has to be bigger. I also buy older cars and don't have full coverage which is required when you have a loan, so I save on insurance. It also gives me more confidence in negotia...
by MathWizard
Sun Feb 01, 2015 1:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are car loans really that bad?
Replies: 86
Views: 6761

Re: POLL: Do you personally own a cell phone?

Just got my first smartphone ($150 for the phone)
$129/yr for service.

Before that I just had flip phones.

Never had a company cell, if I had they
would know my cell number and call me.
my boss would call me with questions at home
even when I was out sick.
by MathWizard
Sun Feb 01, 2015 1:39 pm
 
Forum: Personal Consumer Issues
Topic: POLL: Do you personally own a cell phone?
Replies: 92
Views: 6164

Re: How to Decrease Our Tax bill

My est would be that your fed tax bill MFJ with std deduc and 4 pers exempt and maxing 401k would be about $7K Is only $3K being withheld? Why are you claiming 6 exemptions? If you are paying for college? The Amer Opportunity Tax Credit would be available which could cut your taxes up to $2500.
by MathWizard
Fri Jan 30, 2015 11:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to Decrease Our Tax bill
Replies: 14
Views: 1753

Re: what to do with 529 if you earn a scholarship?

In fact, you don't want the money for the first $4K of tuition in the 529 or you'll miss out on 4 years of Amer Opp. Tax Credit which is worth $2500/yr. Really? If so, one of us needs a new tax preparer. L. typo. Should have been: Don't use the 529 money for the first $4K of tuition. You can't clai...
by MathWizard
Fri Jan 30, 2015 3:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: what to do with 529 if you earn a scholarship?
Replies: 22
Views: 2067

Re: what to do with 529 if you earn a scholarship?

In fact, you don't want the money for the first $4K of tuition in the 529 or you'll miss out on 4 years of Amer Opp. Tax Credit which is worth $2500/yr. Really? If so, one of us needs a new tax preparer. L. typo. Should have been: Don't use the 529 money for the first $4K of tuition. You can't clai...
by MathWizard
Fri Jan 30, 2015 3:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: what to do with 529 if you earn a scholarship?
Replies: 22
Views: 2067

Re: Accidentally forgot a credit card for three months HELP!

I respectfully disagree with the suggestion of closing this account. Because unused credit limit is an important part of scores, that might hurt your FICO score more. I agree with other posters' suggestions that (1) you contact your credit card company (politely escalate to supervisor) to request t...
by MathWizard
Fri Jan 30, 2015 2:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Accidentally forgot a credit card for three months HELP!
Replies: 40
Views: 3994

Re: what to do with 529 if you earn a scholarship?

So this is somewhat hypothetical for me at the moment, but I was wondering what you would do if you found that your only child had been awarded a $20,000 scholarship for her last year of college and therefore did not need the $20k you had set aside in a 529. Assume you don't need the $20k and want ...
by MathWizard
Fri Jan 30, 2015 2:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: what to do with 529 if you earn a scholarship?
Replies: 22
Views: 2067

Re: Wiki comments requested: The importance of asset allocat

I think the problem with finding good sources highlights that the statement is not true. This is not an uncommon occurrence when a statement has been accepted as dogma for a long time. I don't believe that AA is the most important decision. It is at best a secondary decision. Over the long term AA o...
by MathWizard
Fri Jan 30, 2015 1:34 pm
 
Forum: Investing - Theory, News & General
Topic: Wiki comments requested: The importance of asset allocation
Replies: 208
Views: 10305

Re: What's wrong with volatility if buy&hold

I cannot address what Prof. Lo might have meant, but to answer your title question - there is a problem with volatility beyond its association with risk. Volatility produces a drag on compounded returns. So while the annual average return may remain constant, the greater the volatility, the greater...
by MathWizard
Mon Jan 26, 2015 6:20 pm
 
Forum: Investing - Theory, News & General
Topic: What's wrong with volatility if buy&hold
Replies: 52
Views: 3496

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: 3131

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: 2159

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: 3131
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