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Re: When will / did you claim Social Security benefits?

The question muddles spousal and primary benefits. My wife is disabled and younger than me so I get spousal at 66 and mine at 70
by Professor Emeritus
Thu Mar 05, 2015 11:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: When will / did you claim Social Security benefits?
Replies: 15
Views: 864

Re: Square pegs won't go in round holes! Net Worth and Cash

Why don't you explain how, in your view, one can make better portfolio allocation decisions after converting everything to its present value? Your portfolio is one part of your overall assets. it can range from 0% to 100% Your overall assets have to match your overall risk tolerance. If your portfo...
by Professor Emeritus
Sun Dec 28, 2014 5:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

Why don't you explain how, in your view, one can make better portfolio allocation decisions after converting everything to its present value? Your portfolio is one part of your overall assets. it can range from 0% to 100% Your overall assets have to match your overall risk tolerance. If your portfo...
by Professor Emeritus
Sun Dec 28, 2014 2:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

It is interesting you used legal property definition to talk about finance, especially when the finance definition is much more common. I suggest when you do that, you should define the key terms first, unless you are talking to legal professions only. Otherwise, you create a lot of confusion. the ...
by Professor Emeritus
Sat Dec 27, 2014 6:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

Why don't you explain how, in your view, one can make better portfolio allocation decisions after converting everything to its present value? Your portfolio is one part of your overall assets. it can range from 0% to 100% Your overall assets have to match your overall risk tolerance. If your portfo...
by Professor Emeritus
Sat Dec 27, 2014 6:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

It is interesting you used legal property definition to talk about finance, especially when the finance definition is much more common. I suggest when you do that, you should define the key terms first, unless you are talking to legal professions only. Otherwise, you create a lot of confusion. the ...
by Professor Emeritus
Sat Dec 27, 2014 5:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

[/quote] It is interesting you used legal property definition to talk about finance, especially when the finance definition is much more common. I suggest when you do that, you should define the key terms first, unless you are talking to legal professions only. Otherwise, you create a lot of confusi...
by Professor Emeritus
Sat Dec 27, 2014 4:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Once in a lifetime moment

Congrats! I just sold my Mom's house. Long story short... my Dad passed away earlier this year and my Mom can't handle finances. We had the realtor act as POA for the transaction (I couldn't attend settlement in person). Prior to settlement, I was told that the title company closed out everything w...
by Professor Emeritus
Sat Dec 27, 2014 4:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Once in a lifetime moment
Replies: 12
Views: 2478

Re: Square pegs won't go in round holes! Net Worth and Cash

You are not answering the question, which deals with portfolio asset allocation. You have created an ultra simplification with an arbitrary fixed 50 k "need" that makes it a tinkertoy problem but retirement needs come as risk matrices with uncertainties, or everyone would just annuitize a...
by Professor Emeritus
Sat Dec 27, 2014 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Once in a lifetime moment

Ok we have been working for a year to sell the house my wife inherited from her father. DW is disabled and My daughter and I did all the necessary administration. House was a freaking nightmare. We had to invest money to sell the house, so the financing was complicated. But it settled yesterday . I ...
by Professor Emeritus
Sat Dec 27, 2014 3:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Once in a lifetime moment
Replies: 12
Views: 2478

Re: Square pegs won't go in round holes! Net Worth and Cash

Asset allocation is an irrational process. Yes, for a desired risk level, you can do a pretty rational determination of asset mix based on historical volatility, but the decision about risk level is entirely up to the individual investor. Although some asset allocation decisions have measurable fin...
by Professor Emeritus
Sat Dec 27, 2014 3:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

What do you do with ANY net worth number? for our purposes you use it to determine your portfolio asset allocation. If I have a million dollar pension and a half million dollar SS and your have neither, and we are both 63 and retired we do not have the same inputs to our portfolio asset allocation....
by Professor Emeritus
Sat Dec 27, 2014 2:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

... the risk I can take within my portfolio is DETERMINED largely by the percentage my portfolio is of my overall assets. The amount of risk to take is determined by what is prudent, prudence being defined by the consequences of the risk being realized as a failure of your goals being met (or other...
by Professor Emeritus
Sat Dec 27, 2014 11:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

2) What do you do with ANY net worth number? for our purposes you use it to determine your portfolio asset allocation. That is where you and I part ways. I think only investable assets can or should be considered in an Asset Allocation. After all, it is the investments that you can actully allocate...
by Professor Emeritus
Sat Dec 27, 2014 11:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

Let's say I know I am going to get $20,000 per year from SS and that I want to have $50,000 per year to live on in retirement (in my debt-free home). If look at things as they actually are, I can then estimate that I will need about $750,000-$1 million in stocks, bonds, cash to have a good chance o...
by Professor Emeritus
Sat Dec 27, 2014 10:31 am
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

Social security benefits are not liquid but that does not prevent the right to a benefit from being an asset in a net worth analysis. Well, there is no legal "right to a benefit". http://www.ssa.gov/history/nestor.html Section 1104 of the 1935 Act, entitled "RESERVATION OF POWER,&quo...
by Professor Emeritus
Sat Dec 27, 2014 10:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

I am using the legal property definition of "liquid". an asset is "liquid" when you have the legal right to turn it into cash Shares of stock (or any other property) that you own but cannot legally sell are not liquid. Social security and pension benefits are not liquid. My share...
by Professor Emeritus
Sat Dec 27, 2014 6:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

I don’t know how illiquid asset generally cannot be held in portfolios. The definition of portfolio is “a collection of investments held by an investment company, hedge fund, financial institution or individual.” ..... Illiquid is “The state of a security or other asset that cannot easily be sold o...
by Professor Emeritus
Fri Dec 26, 2014 10:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Fire Advisor & Simplify Mom's portfolio for long term ca

Very few here are fans of financial advisors or active fund management (myself included), but to call this portfolio "appalling" or "unconscionable" are overstatements that imply negligence or incompetence which there is no evidence of. I'm sorry but she is 87 in an Alzheimer's ...
by Professor Emeritus
Fri Dec 26, 2014 10:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fire Advisor & Simplify Mom's portfolio for long term care?
Replies: 11
Views: 1017

Re: Square pegs won't go in round holes! Net Worth and Cash

A net worth analysis and a cash flow analysis are not the same thing. Net worth and cash flow are two fundamentally different albeit complimentary methods of looking at financial well being. Net worth deal in assets and liabilities It is an analysis of "stock" It tells you your net wealth...
by Professor Emeritus
Fri Dec 26, 2014 3:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

A net worth analysis and a cash flow analysis are not the same thing. Net worth and cash flow are two fundamentally different albeit complimentary methods of looking at financial well being. Net worth deal in assets and liabilities It is an analysis of "stock" It tells you your net wealth...
by Professor Emeritus
Fri Dec 26, 2014 2:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Fire Advisor & Simplify Mom's portfolio for long term ca

IMHO as a retired spouse of a disabled person facing the cost of LTC I find this portfolio appalling. While an investment in Wellington may not be the absolute best I am sure it would be better than this hodge podge.
by Professor Emeritus
Fri Dec 26, 2014 1:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fire Advisor & Simplify Mom's portfolio for long term care?
Replies: 11
Views: 1017

Re: Square pegs won't go in round holes! Net Worth and Cash

By rough count there have been 3465 threads asking the question Do you or how do you put a stream of payments in your asset allocation or net worth? answers have ranged from the hilarious to the serious. But few have been analytical. Let me give a framework. A net worth analysis and a cash flow ana...
by Professor Emeritus
Fri Dec 26, 2014 10:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: 'time in' the market vs 'timing' the market

Since he is uncomfortable at jumping in at this point I wouldn't push him because if things go south he will feel he was right and should time the market or become extremely risk adverse or both. So you can leave him alone and let him see what might have happened or what I would consider is taking ...
by Professor Emeritus
Fri Dec 26, 2014 10:28 am
 
Forum: Investing - Help with Personal Investments
Topic: 'time in' the market vs 'timing' the market
Replies: 37
Views: 2439

Re: Square pegs won't go in round holes! Net Worth and Cash

In some ways this is a pointless discussion. The problem with "net worth" is that measuring assets and liabilities is imperfect and not an exact science. Many assets and liabilities are difficult, if not impossible, to put a dollar amount on. In some cases it may not even be desirable to ...
by Professor Emeritus
Fri Dec 26, 2014 7:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

So, I am feeling pretty chipper today, but I am closing in on 78 YO. My dad died of heart attack at age 78, and my paternal grandfather died of heart failure at 66. Pretend my SS is $1,000/mo. How much should I add to my net worth for this asset? Income streams that end on death are not assets. Ass...
by Professor Emeritus
Thu Dec 25, 2014 6:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

Liquidity is an attribute of both stocks and flows but it is not particularly important. Social security benefits are not liquid but that does not prevent the right to a benefit from being an asset in a net worth analysis. If social security is not an asset an identical debt payable in monthly inst...
by Professor Emeritus
Thu Dec 25, 2014 5:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Square pegs won't go in round holes! Net Worth and Cash

Square pegs won't go in round holes! Net Worth and Cash flow Net worth and cash flow are more or less interconvertable using a well defined series of assumptions and tools Sounds contradictory to me. Perhaps that's why I can't understand what your post is getting at. One thing I have noticed when r...
by Professor Emeritus
Thu Dec 25, 2014 3:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Square pegs won't go in round holes! Net Worth and Cash flow

By rough count there have been 3465 threads asking the question Do you or how do you put a stream of payments in your asset allocation or net worth? answers have ranged from the hilarious to the serious. But few have been analytical. Let me give a framework. A net worth analysis and a cash flow anal...
by Professor Emeritus
Thu Dec 25, 2014 1:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Square pegs won't go in round holes! Net Worth and Cash flow
Replies: 83
Views: 7169

Re: Irrevocable "income only" trust, nursing home, tax quest

would be protected against Medicaid. . In other words pretending poverty to deplete a welfare program designed for poor people. Yes I know of the long standing ethics debate on "medicaid planning" Most of the participants have a blatant conflict of interest. Positivist arguments that anyt...
by Professor Emeritus
Sun Nov 30, 2014 10:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Irrevocable "income only" trust, nursing home, tax questions
Replies: 11
Views: 1363

Re: AA and Pension?

Because I would have a pension when I retired, I invested much more aggressively than the age in bonds rule of thumb. A few years before retirement (and after the recession in 2000) I backed off a bit from 80% equities to about 70%. I held at about 70% until a few years before I retired. I did not,...
by Professor Emeritus
Sun Nov 30, 2014 8:44 am
 
Forum: Investing - Help with Personal Investments
Topic: AA and Pension?
Replies: 31
Views: 2902

Re: Being woken up by neighbors above me

Mean-spirited and snarky responses: NOT APPRECIATED. Just because it's the Internet doesn't mean one should feel free to be a jerk. With compete respect and sympathy , may I possibly suggest that your follow on post invited the snarky responses . You suggested ambushing them (my term not yours) in ...
by Professor Emeritus
Sun Nov 30, 2014 7:01 am
 
Forum: Personal Consumer Issues
Topic: Being woken up by neighbors above me
Replies: 79
Views: 6431

Re: Strategy for paying for bridge years until Social Securi

I have set up a 5 year CD ladder in which a CD will come due every 6 months. I already work part time (24-30 hrs/week) (I am 60 in January) but my husband wants to work full time at his present job for 2 more years (he is 60). The plan is to use our CD ladder after hubby retires for the five years....
by Professor Emeritus
Sun Nov 30, 2014 6:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Strategy for paying for bridge years until Social Security
Replies: 20
Views: 3575

Re: Strategy for paying for bridge years until Social Securi

livesoft wrote:Strategy for playing bridge for years until Social Security? Why not keep playing even after that?


because 25% of the time you are the dummy?
by Professor Emeritus
Sun Nov 30, 2014 6:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Strategy for paying for bridge years until Social Security
Replies: 20
Views: 3575

Re: Am I a job hopper?

dbh25 wrote:]

You are not a job hopper. As mentioned above, you should be prepared to answer a general interview question about why you left any position stated on the resume.


I advise my students to say they have never broken an employment contract and the job they were doing ended.
by Professor Emeritus
Sun Nov 30, 2014 6:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Am I a job hopper?
Replies: 50
Views: 4801

Re: Am I a job hopper?

Job-hopping is an abusive term invented by HR managers to describe at-will employees who suddenly realized that loyalty only goes one way.
by Professor Emeritus
Sun Nov 30, 2014 6:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Am I a job hopper?
Replies: 50
Views: 4801

Re: AA and Pension?

You have two kinds of assets. Portfolio assets and non portfolio assets. A million dollar house is an asset but not a portfolio asset. A million dollar pension is an asset but not a portfolio asset. A million dollar gold toilet is an asset but not a portfolio asset. An annuity is an asset but not a ...
by Professor Emeritus
Sun Nov 30, 2014 5:33 am
 
Forum: Investing - Help with Personal Investments
Topic: AA and Pension?
Replies: 31
Views: 2902

Re: Home equity loan as an asset?

[quote="Admiral"]Professor Emeritus, all due respect, but many of us want to die with a positive net worth: it's called an estate, and it's what we leave to our kids (and grand kids). With all due respect I wrote If you don't have a bequest motive it may be a perfectly useful method of usi...
by Professor Emeritus
Sat Nov 29, 2014 7:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Home equity loan as an asset?
Replies: 46
Views: 3502

Re: Should 529s be counted part of our net worth?

It makes sense to count the 529 in your net worth because it is your money. . No its not , plain and simple read the law (b) Qualified tuition program For purposes of this section— (1) In general The term “qualified tuition program” means a program established and maintained by a State or agency or...
by Professor Emeritus
Fri Nov 28, 2014 8:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should 529s be counted part of our net worth?
Replies: 34
Views: 2611

Re: Starter Trust for adult child?

There is a common concern among wealthy families that adult children will not be able to manage an inheritance. How to educate one's heirs before the big windfall lands in their laps? So, how about setting up a modest irrevocable trust for each child? A $500k trust would throw off maybe $15k per ye...
by Professor Emeritus
Fri Nov 28, 2014 11:20 am
 
Forum: Personal Finance (Not Investing)
Topic: Starter Trust for adult child?
Replies: 13
Views: 2047

Re: Rental Real Estate vs. Stocks and Bonds

RE is an attractive idea, and you may just have to try it out for yourself. I have looked in to this from multiple angles over the years, and had a rental house for the last 4. I learned that I lacked the commitment to be an efficient landlord, which made the experience tedious and burdensome. Sell...
by Professor Emeritus
Fri Nov 28, 2014 9:44 am
 
Forum: Personal Finance (Not Investing)
Topic: Rental Real Estate vs. Stocks and Bonds
Replies: 71
Views: 8385

Re: Filing homeowners Insurance claim - Sprinklers went off

I would file the claim. Ask if they waive the deductible or make other special allowances for a sprinkler activation.
by Professor Emeritus
Fri Nov 28, 2014 8:41 am
 
Forum: Personal Consumer Issues
Topic: Filing homeowners Insurance claim - Sprinklers went off
Replies: 13
Views: 1408

Re: Filing homeowners Insurance claim - Sprinklers went off

I took some pictures and a video while cleaning up. But why would I need that? If it is a case of proving it, I called the fire department so it should be on record. I also sustained burns on my for arms buy th ey are not severe so I haven't gone to the hospital. For those who know, would it be nec...
by Professor Emeritus
Fri Nov 28, 2014 7:45 am
 
Forum: Personal Consumer Issues
Topic: Filing homeowners Insurance claim - Sprinklers went off
Replies: 13
Views: 1408

Re: SS Survivor Benefit - Help!

Spousal benefits and survivor benefits are "welfare" components of social security. You don't pay anything extra for them. They are designed to provide basic support for groups who had no other source of income. I respectfully beg to differ - all situations are different. In my family's c...
by Professor Emeritus
Fri Nov 28, 2014 3:03 am
 
Forum: Personal Finance (Not Investing)
Topic: SS Survivor Benefit - Help!
Replies: 5
Views: 622

Re: SS Survivor Benefit - Help!

Spousal benefits and survivor benefits are "welfare" components of social security. You don't pay anything extra for them. They are designed to provide basic support for groups who had no other source of income.
by Professor Emeritus
Fri Nov 28, 2014 2:34 am
 
Forum: Personal Finance (Not Investing)
Topic: SS Survivor Benefit - Help!
Replies: 5
Views: 622

Re: Filing homeowners Insurance claim - Sprinklers went off

If you set off a sprinkler system you saved the house. Sprinklers are very good at that.
by Professor Emeritus
Fri Nov 28, 2014 2:25 am
 
Forum: Personal Consumer Issues
Topic: Filing homeowners Insurance claim - Sprinklers went off
Replies: 13
Views: 1408

Re: Bogle says treat soc sec & pensions as like fixed assets

But isn't another important difference between fixed income such as bonds and capitalized pensions and ss the fact that the capitalized ss and pension cannot be sold and used to reallocate to equities during a severe bear market? This is only important to spreadsheet zombies who cannot understand t...
by Professor Emeritus
Thu Nov 27, 2014 7:47 pm
 
Forum: Investing - Theory, News & General
Topic: Count Capitalized Pension Benefits Cash/Bonds for Portfolio?
Replies: 31
Views: 4324

Re: Ever wake up one day, and your whole life has changed? (

1) You don't list any insurance and secure storage cost for the firearms and gold
2) do you value the firearms at their current net auction value ? Most collectors vastly over value such collections

More later , happy thanksgiving and thank you for your service .
by Professor Emeritus
Thu Nov 27, 2014 2:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: [woke up] and whole life has changed. [disabled vet]
Replies: 26
Views: 6873
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