Search found 1334 matches

by SGM
Tue Aug 04, 2015 8:48 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 19
Views: 1973

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

I would not get an SPIA at 65 but might buy laddered annuities starting at 70 or later. I am concerned about inflation eroding the value of an SPIA and am also reluctant to wait so long for a cost of living adjusted annuity to catch up to the payout of a unadjusted SPIA. How do the calculations work...
by SGM
Tue Aug 04, 2015 3:17 pm
Forum: Personal Consumer Issues
Topic: Retirees: Questions you hate being asked
Replies: 94
Views: 6914

Re: Retirees: Questions you hate being asked

I retired early (50) and am asked, "I can't image being retired, I would be so bored". My sense is that those who ask are jealous. Actually, that comment is a big part of the reason I am still working at 70, although I can afford to retire. I haven't figured out anything I could do in ret...
by SGM
Mon Aug 03, 2015 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Research Conference in DC in August (free)
Replies: 6
Views: 575

Re: Retirement Research Conference in DC in August (free)

Thanks Bob,

I have always enjoyed and learned a few things at these Retirement Research conferences and will attend August 6. Does The VictoriaF Fan Club count as an affiliation for registration purposes?
by SGM
Mon Aug 03, 2015 10:37 am
Forum: Investing - Theory, News & General
Topic: Allan Roth Says Not to Load Up on Muni Bonds
Replies: 53
Views: 3617

Re: Allan Roth Says to Avoid Muni Bonds

I am happy to see that Allan Roth is okay with low cost muni bond funds. I had the impression from a conversation at BH 13 that he was only in favor of treasuries. I have seen the falsely high return of individual muni bonds in a relative's portfolio. It is much as described in the piece above. Unfo...
by SGM
Sun Aug 02, 2015 4:47 am
Forum: Investing - Theory, News & General
Topic: solo 401k employer contributions mid-year
Replies: 8
Views: 560

Re: solo 401k employer contributions mid-year

Beacon Capital Management has a handy solo 401K calculator. The limits for profit sharing are greater for a corporation vs. a sole proprietorship but you can figure it out either way with the calculator. Apparently an LLC can be taxed as either a corporation or a sole proprietorship per the calculat...
by SGM
Sat Aug 01, 2015 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: What to do when approaching retirement and 90% is in taxable account
Replies: 8
Views: 1666

Re: What to do when approaching retirement and 90% is in taxable account

She should look into a spousal SS benefit if she was married 10 years or more. At some point she could qualify for a higher widow's benefit. I would put REITs and Tips in tax deferred accounts. I would probably have all bonds in taxable account in muni bond funds.
by SGM
Fri Jul 31, 2015 4:19 am
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 5335

Re: Another look at dividend paying stocks

I wonder how the total stock return of companies that buy back shares compares to companies that pay dividends. Of course there are many companies that return profits to share holders by both strategies. A reason companies like buy backs is that decreasing buy backs does not get the same negative pu...
by SGM
Thu Jul 30, 2015 3:45 am
Forum: Personal Finance (Not Investing)
Topic: Independent Contractor (IC) vs. Regular Employee (RE)
Replies: 11
Views: 741

Re: Independent Contractor (IC) vs. Regular Employee (RE)

I chose to be an IC with a part time position. I was already had a private business set up as an S corp and the hours were so few that there would not be any health insurance benefit. I was able to deduct many expenses that I would not have been able to deduct as an employee. I also could hire famil...
by SGM
Wed Jul 29, 2015 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Shopping for lowest price of a SPIA
Replies: 2
Views: 237

Re: Shopping for lowest price of a SPIA

USAA has a high credit rating and I believe anyone can buy an annuity through them. I don't know what their prices are. I intend to ask them for a price as well as Vanguard should I annuitize.
by SGM
Tue Jul 28, 2015 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Budgeting For 2016 Medicare Part B Increase
Replies: 45
Views: 2733

Re: Budgeting For 2016 Medicare Part B Increase

Medicare bases the premiums on what the IRS gives them from two years before. The premiums keep going up and I thought I saw an article where it will hit those with lower MAGIs. You can inform them of changes in your income goes down in the meantime. I think you are stuck with the Roth conversion am...
by SGM
Mon Jul 27, 2015 3:38 am
Forum: Investing - Help with Personal Investments
Topic: Helping Mom - I'm Concerned About Her Advisor
Replies: 24
Views: 1829

Re: Helping Mom - I'm Concerned About Her Advisor

Sheep are there to be sheared. It is always an eye opener to see these ERs and loads. If your mother had any financial sense she would get rid of this advisor today. Get low cost Vanguard funds and keep it simple. She does not need an advisor, but if she wants one then Vanguard is the way to go.
by SGM
Sun Jul 26, 2015 5:17 pm
Forum: Personal Consumer Issues
Topic: Would you look down on a co-worker for driving a beater?
Replies: 191
Views: 12198

Re: Would you look down on a co-worker for driving a beater?

In one of my early careers a fellow engineer saw us driving a beater to a social event and accused us of being eccentric and rich. That was a little embarrassing to be accused of being rich. I pleaded poverty but the engineer didn't believe me. We drove several beaters for a while. We drove several ...
by SGM
Sat Jul 25, 2015 4:43 am
Forum: Investing - Theory, News & General
Topic: Merton - DC Pension Plans Need to Simplify
Replies: 5
Views: 754

Re: Merton - DC Pension Plans Need to Simplify

TIAA-CREF always gives an estimate of how much monthly income one could expect at retirement given the current contributions. My son's 401K also has an estimate of retirement income based on continuing contributions and upping contribution percentages. From what I have read most T-C retirees are hap...
by SGM
Fri Jul 24, 2015 5:10 am
Forum: Investing - Help with Personal Investments
Topic: Solo401K recommendation
Replies: 34
Views: 2081

Re: Solo401K recommendation

I don't know that Fidelity had as many of the lower cost Spartan funds when I started my 401K. And I recall at one time that a Fidelity Spartan fund had a higher ER than the comparable Vanguard fund. It looks as if that has changed. My error. I still don't like the company for the other reasons I me...
by SGM
Thu Jul 23, 2015 4:57 am
Forum: Investing - Help with Personal Investments
Topic: Solo401K recommendation
Replies: 34
Views: 2081

Re: Solo401K recommendation

When I worked I had a Fidelity solo 401K. It offered no additional protection against law suits than an IRA. In that respect a 401K with a large firm would have been more desirable. Fortunately I was never sued. Prior to complete retirement I made in-service transfers to a Vanguard IRA. Fidelity ref...
by SGM
Wed Jul 22, 2015 4:18 am
Forum: Personal Consumer Issues
Topic: Worst financial book you have read (or will admit you have read)
Replies: 90
Views: 8535

Re: Worst financial book you have read (or will admit you have read)

I cannot recall the names of the books, but there was one by Fisher who has a column in Forbes and one by Ray Lucia on buckets and he recommends non-traded REITs. So do you throw these books away or donate them to a library or thrift shop so someone else will get suspect advice?
by SGM
Tue Jul 21, 2015 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Liquidating [funds in UTMA account]
Replies: 15
Views: 1181

Re: Liquidating [funds in UTMA account]

VTI is considered a long term core holding by most people on this web site. It has a rock bottom expense ratio and is a broad index fund. If you have any earned income you might consider a sale of one of the other two holdings and starting a Roth IRA. If your other income is low enough you might qu...
by SGM
Tue Jul 21, 2015 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Should I consider Social Security Benefits as Assets
Replies: 44
Views: 2792

Re: Should I consider Social Security Benefits as Assets

I do not consider SS benefits as an asset. However, if you have multiple income streams that cover your expenses then you might consider having a higher allocation to stocks . SS has the advantage that no more than 85% of it will ever be taxed. Some states do not tax SS. SS has a cost of living adju...
by SGM
Tue Jul 21, 2015 4:10 am
Forum: Investing - Help with Personal Investments
Topic: Liquidating [funds in UTMA account]
Replies: 15
Views: 1181

Re: Liquidating [funds in UTMA account]

VTI is considered a long term core holding by most people on this web site. It has a rock bottom expense ratio and is a broad index fund. If you have any earned income you might consider a sale of one of the other two holdings and starting a Roth IRA. If your other income is low enough you might qua...
by SGM
Mon Jul 20, 2015 9:13 pm
Forum: Investing - Theory, News & General
Topic: Pros and cons of adding Roth Option to 401K Plan
Replies: 94
Views: 5418

Re: Pros and cons of adding Roth Option to 401K Plan

One of my children has a 401K plan without the Roth option. His tax bracket will be a lot higher in the future and during retirement. His Roth IRA is maximized every year, but he is missing out on tax free compounding in his 401K for the next 30 or more years. An employer has no idea what the future...
by SGM
Mon Jul 20, 2015 4:46 am
Forum: Investing - Theory, News & General
Topic: Annuities-when and why?
Replies: 43
Views: 4093

Re: Annuities-when and why?

If I annuitize it will be laddered SPIAs purchased from a taxable account beginning at 70. DW has a TIAA-CREF retirement plan. She and her former employer contributed to it for 4 years. It has since grown for 30 years, doubling every 7.2 years. It can be annuitized tomorrow and would give her a nice...
by SGM
Sun Jul 19, 2015 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Do I Really Need a Financial Advisor?
Replies: 44
Views: 2994

Re: Do I Really Need a Financial Advisor?

One of the fallacies that help advisors is that 1% may not seem all that high - until you consider that they are taking that based on the amount of the investment - NOT the amount that the investment earns. So if you earn 10%, you are giving up 10% of your return to your advisor, if you earn 5% you...
by SGM
Thu Jul 16, 2015 10:16 am
Forum: Investing - Theory, News & General
Topic: Do Dividends Actually Add To The Total Return of a Stock?
Replies: 40
Views: 4412

Re: Do Dividends Actually Add To The Total Return of a Stock?

It is interesting to read the blog and comments and this thread. Dividends are part of the total return of a stock. In retirement I am interested in income. However, this does not mean failing to assess the prospects of a specific company if you own individual stock. I expect that dividend growers w...
by SGM
Sun Jul 12, 2015 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: An email to my employer I almost sent, but then deleted
Replies: 26
Views: 4002

Re: An email to my employer I almost sent, but then deleted

Writing a letter or email and not sending it is a great way to let off steam, but is no way to negotiate. I just picked up Getting to Yes and hope it will help me learn to negotiate a better deal in a situation I am involved in. The book advises treating the other guy as a person and letting the oth...
by SGM
Sun Jul 12, 2015 8:51 am
Forum: Personal Finance (Not Investing)
Topic: A Career in Golf?
Replies: 22
Views: 2450

Re: A Career in Golf?

Relation is a manager of a public course in the northeast. He lives in a nice low rent bldg. in a state park. My sense is he makes a decent living, but his spouse works too. Another relation is running a private club as a group of golfers sought to keep their favorite course from closing. Another pr...
by SGM
Sun Jul 12, 2015 5:16 am
Forum: Investing - Help with Personal Investments
Topic: AA help for 403b (TIAA-CREF)
Replies: 15
Views: 1365

Re: AA help for 401k (TIAA-CREF)

I am not an expert on T-C. An old T-C account has had a terrific return for DW and is almost all CREF stock although it started out 50% TIAA and 50% CREF Stock. Since CREF stock's ER is relatively low compared to other choices and has done so well for us we have made no change for now. I have read n...
by SGM
Fri Jul 10, 2015 4:39 am
Forum: Personal Finance (Not Investing)
Topic: Kitces - BOTH spouses should not delay SS
Replies: 11
Views: 2165

Re: Kitces - BOTH spouses should not delay SS

I used free calculators and all but one had lower earning spouse take a spousal at FRA. One calculator advised taking a spousal a few months before FRA which did not make sense to me. In our case the lower earning spouse will get a spousal benefit that is slightly higher than her PIA. However at age...
by SGM
Thu Jul 09, 2015 10:51 am
Forum: Investing - Theory, News & General
Topic: Suze Orman Show Summary
Replies: 55
Views: 7594

Re: Suze Orman Show Summary

We watched a few of her old syndicated shows for entertainment. I was amazed at how much credit card debt and how little her guests had saved for retirement. There seemed to be quite a few lost souls on her show. The type of people who needed her help were not your typical BH. The majority of guests...
by SGM
Wed Jul 08, 2015 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion advice
Replies: 9
Views: 681

Re: Roth IRA conversion advice

You can do partial Roth conversions. Generally you are better off if your tax rate is lower when you are doing the conversions. You have until October 15 of the following year to recharacterize back to a traditional IRA if you are unsatisfied with the result. The opportunity to recharacterize is a r...
by SGM
Wed Jul 08, 2015 5:01 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 112
Views: 11626

Re: TIPS - Did you give up?

The short term TIPS ETF is down 3.5% after a few years and I am considering selling it once I overcome inertia. I think I am better off with investments and not insurance in a Roth account.
by SGM
Tue Jul 07, 2015 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Physician with salary/401k question
Replies: 10
Views: 1893

Re: Physician with salary/401k question

Note that once you have 250K in a solo 401K you have to fill out a 5500 EZ form. That information is accessible by the public. Yes it is accessible, but a change was made to make it tougher for "the public" to find. The public has to know exactly what they are looking for in sufficient de...
by SGM
Tue Jul 07, 2015 6:23 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 112
Views: 11626

Re: TIPS - Did you give up?

I first bought TIPS after reading about them on this site. The amount I have in I bonds and TIPS never amounted to much anyway. I have decided that I will depend on stock funds, real estate and cola adjusted income streams for inflation protection. I have had patience throughout my investing years,...
by SGM
Tue Jul 07, 2015 4:19 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 112
Views: 11626

Re: TIPS - Did you give up?

I first bought TIPS after reading about them on this site. The amount I have in I bonds and TIPS never amounted to much anyway. I have decided that I will depend on stock funds, real estate and cola adjusted income streams for inflation protection. I have had patience throughout my investing years, ...
by SGM
Mon Jul 06, 2015 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Physician with salary/401k question
Replies: 10
Views: 1893

Re: Physician with salary/401k question

You need to pay yourself a salary that is reasonable for someone in your specialty. I would put the 18K in the group plan 401K. There is greater protection in a group plan from law suits. You might consider not using that plan if there are poor choices with high ERs. I would likely fill the balance ...
by SGM
Fri Jul 03, 2015 5:00 am
Forum: Personal Finance (Not Investing)
Topic: financial adviser told me not to invest too much in 401k
Replies: 92
Views: 10097

Re: financial adviser told me not to invest too much in 401k

You may be in a higher tax bracket in retirement and RMDs may push you into a higher bracket. Allow your money to grow in a 401k. When you change jobs you could rollover part or all of the 401k into an IRA and convert to a Roth IRA while continuing to make 401K contributions in your new job. This as...
by SGM
Thu Jul 02, 2015 10:22 am
Forum: Investing - Help with Personal Investments
Topic: How Much Muni Is Too Much Muni?
Replies: 15
Views: 1637

Re: How Much Muni Is Too Much Muni?

I briefly discussed munis vs. treasuries with Allan Roth at the last Phillie meeting. He seemed to be saying that treasuries are the only thing you can truly depend upon in a crunch. However, I own a few tips and the overwhelming majority of bond investments are in muni bond funds with the exception...
by SGM
Thu Jul 02, 2015 4:04 am
Forum: Investing - Theory, News & General
Topic: Are REITs necessary in a portfolio? Why?
Replies: 119
Views: 12962

Re: Are REITs necessary in a portfolio? Why?

JDot, you could always do a backdoor Roth and use it to hold REITs. Want to fund a HSA quickly? JDot, you could also if your 401k allows it, rollover some of it into a traditional IRA and then place it in a HSA. Putting a tIRA into a HSA is beneficial because it will never be taxed if you use it fo...
by SGM
Wed Jul 01, 2015 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Unknown phone calls
Replies: 67
Views: 6692

Re: Unknown phone calls

Let it go to voice mail or pick up and don't answer. The latter would be better if they think the phone is inactive and stop calling. I don't talk to legitimate charities either. They can send me mail or I will seek them. I don't need to talk to them. I have an unlisted land line and cell phone and ...
by SGM
Tue Jun 30, 2015 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: VDE lacking clean energy
Replies: 26
Views: 1533

Re: VDE lacking clean energy

I took over a defunct shale pilot plant space for my lab in the 1980s, so I am aware that big oil has dabbled in alternative energy. It has to be profitable or the oil companies will not devote a lot of money to it. Absolutely, one must make a profit for the stockholders or there is no reason to be ...
by SGM
Tue Jun 30, 2015 4:15 am
Forum: Investing - Help with Personal Investments
Topic: VDE lacking clean energy
Replies: 26
Views: 1533

Re: VDE lacking clean energy

I reviewed VDE's holdings recently and found that that ETF is enormously overinvested in fossil fuels -- not much in the way of solar/clean energy. Anyone have opinions on whether or not this is likely to change? This will not happen until "clean energy" companies can become viable withou...
by SGM
Mon Jun 29, 2015 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Lucent offering pension buyout to retirees: what to do?
Replies: 78
Views: 11376

Re: Lucent offering pension buyout to retirees: what to do?

If you are already managing a large sum in either taxable or tax advantaged accounts you might want an annuity to transfer the risk to an insurance company. The question then would be could you get a better rate if you shopped around and diversified among insurance companies. You could also do seria...
by SGM
Sun Jun 28, 2015 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Drawing from Retirement Savings to Delay SS
Replies: 43
Views: 4418

Re: Drawing from Retirement Savings to Delay SS

I don't have very high expenses outside of Medicare and taxes. We can't get away much because of a dependent elderly relative. Spousal benefit will kick in very early in 2016. A savings annuity similar to a tax deferred CD is getting a little lower rate than the initial 4.0% because the interest on ...
by SGM
Fri Jun 26, 2015 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Re-Eval TIAA-CREF Funds
Replies: 19
Views: 1537

Re: Re-Eval TIAA-CREF Funds

As a non-working spouse you can put in $5500 + 1000 in catch up into a spousal Roth IRA as long as your combined income is less than $183000 for 2015. Vanguard is the lowest cost MF provider and the Roth money will never be taxed again. I would avoid spending 1% on an advisor. Investing is not all t...
by SGM
Fri Jun 26, 2015 5:06 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRAs filled up, What's Next? (S-Corp Owners)
Replies: 8
Views: 714

Re: Roth IRAs filled up, What's Next? (S-Corp Owners)

A solo 401k is an excellent way to put away a lot into tax deferred accounts. You can also do direct rollovers and convert into Roth accounts while continuing the solo 401k. Etrade offers a solo Roth 401k and a traditional 401k. You can purchase low ER Vanguard ETFs at any brokerage. I looked at def...
by SGM
Tue Jun 23, 2015 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Role of annuities in low SWR situations
Replies: 29
Views: 3503

Re: Role of annuities in low SWR situations

Thanks for all the replies. The specific question is, does their portfolio longevity and resilience increase by replacing some amount of cash with an SPIA? Given that the likelihood of failure is already nearly zero... . Assuming for simplification that they are only spending money out of the cash ...
by SGM
Mon Jun 22, 2015 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Use Roth IRA to remodel house?
Replies: 18
Views: 2124

Re: Use Roth IRA to remodel house?

Roth money is almost sacrosanct. Don't touch it. There has to be another way to pay for a remodel or do without it.
by SGM
Mon Jun 22, 2015 4:52 am
Forum: Investing - Help with Personal Investments
Topic: Would you pay an ER of 0.92% for a Life Strategy Fund in a 401k?
Replies: 13
Views: 1524

Re: Would you pay an ER of 0.92% for a Life Strategy Fund in a 401k?

I would not pay a high ER if there was a less expensive alternative. I would put money in the less expensive index fund. Next I would transfer the money out to a personal IRA if the plan allows for in service transfers to get really low expenses. It is not just that you lose a $100 a year or more, b...
by SGM
Sat Jun 20, 2015 5:51 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Did you spend much time wringing your hands over Retirement Savings as Many on Forum Do Today?
Replies: 98
Views: 14709

Re: Retirees: Did you spend much time wringing your hands over Retirement Savings as Many on Forum Do Today?

No wringing of hands here.

If you want to see some hand wringing catch Arthur Miller's 1968 play, The Price. Miller's dad was highly successful up until the 1929 crash.
by SGM
Sat Jun 20, 2015 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Converting a UTMA account to Roth
Replies: 5
Views: 748

Re: Converting a UTMA account to Roth

The UTMA belongs to the child and after age 18 or 21 depending on the state, it should be put in the child's individual name. If a checking account is associated with the UTMA then a check can be written directly into a Roth. It is not a conversion or a rollover. I have written checks out of an UTMA...
by SGM
Sat Jun 20, 2015 2:04 pm
Forum: Investing - Theory, News & General
Topic: Wsj article today on reit investing
Replies: 34
Views: 6110

Re: Wsj article today on reit investing

I have some REITs in my Roth and agree with the observation that real estate or REITs makes up a greater part of the economy than they do of the stock market. A lot are privately held and I would not purchase a non-traded REIT. The article explains the rationale for having REITs and also discusses i...

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