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Re: Inflation's impact on retirement savings - confused

30+ years is a long time. Even Nisiprius may possibly be overanalyzing it. Best proven thing to do in to invest a healthy percentage of your income each month and you should be OK. That means at least 15% of gross income starting early. And at least 50% of that in broad based stock funds. As you ge...
by The Wizard
Sat Apr 25, 2015 11:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Inflation's impact on retirement savings - confused
Replies: 16
Views: 1023

Re: Mutual Funds and Compound Interest

The analogy does break down but it is certainly possible to generalize the concept mathematically without using analogies at all. True, but my goal is to scare newbies a bit by not giving them starry-eyed expectations. Otherwise, they put $3000 into VTSMX and in three years, it's down to $2500, so ...
by The Wizard
Sat Apr 25, 2015 11:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Mutual Funds and Compound Interest
Replies: 9
Views: 582

Re: Mutual Funds and Compound Interest

The way I understand it, compound interest works like this: 1. You invest, for example, $1,000 into an interest bearing account. 2. The $1,000 earns a certain % interest at different points over time. 3. The first interest credit earns interest when the second interest credit rolls around, then sec...
by The Wizard
Sat Apr 25, 2015 10:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Mutual Funds and Compound Interest
Replies: 9
Views: 582

Re: Pro rate RMD if retiring middle of year?

Your RMD will just get bigger, in general, in you both delay another year and continue contributing...if that's a factor in your planning.

Travel is a good thing and at some point, employment interferes unacceptably with your other plans.
Just saying...
by The Wizard
Sat Apr 25, 2015 8:20 am
 
Forum: Personal Finance (Not Investing)
Topic: Prorate RMD if retiring middle of year?
Replies: 10
Views: 646

Re: Taxes are killing me

dhodson wrote:My radar goes up when a first time poster talks about tax avoidance.

OK, but in this case it SEEMS to be naivete, to me anyhow...
by The Wizard
Sat Apr 25, 2015 7:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Taxes are killing me
Replies: 21
Views: 2380

Re: I called the Social Security office

I hoped that rep fixed the problem so those three years show up now. You should be able to login to your SS account and create your 4-page PDF report showing your estimated benefit based on all those earnings years. Mine goes back to 1967. And I suspect SS employees have access to a swifter version ...
by The Wizard
Sat Apr 25, 2015 7:24 am
 
Forum: Personal Finance (Not Investing)
Topic: I called the Social Security office
Replies: 2
Views: 486

Re: Help me retire in 10 years

I don't think that $35k includes the 2+ kids yet.
And it certainly doesn't pay toward their college expenses.
It's reality check time...
by The Wizard
Sat Apr 25, 2015 6:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Help me retire in 10 years
Replies: 14
Views: 1710

Re: Best way to heat 15x18 Office?

We have an outbuilding on our acreage. The outbuilding is 50'x50' and 15'x18' of that is an insulated room that I plan to use as an office. I need to figure out how to heat and cool it. A contractor recommended this PTAC unit "LG LP153CD3B PTAC Unit, 208/230V." What would you all recommen...
by The Wizard
Sat Apr 25, 2015 6:45 am
 
Forum: Personal Consumer Issues
Topic: Best way to heat 15x18 Office?
Replies: 5
Views: 450

Re: Help me retire in 10 years

You're planning to have kids, and then retire before they are 10 years old? This doesn't seem realistic. I suppose if you had $5M saved up in a decade you could quit work, yes. Doesn't look like you'll be close to that. I'd recommend saving a healthy amount, staying the course, and putting thoughts ...
by The Wizard
Sat Apr 25, 2015 6:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Help me retire in 10 years
Replies: 14
Views: 1710

Re: deadbeat in group

That deadbeat is defrauding the company and deserves to be terminated. Specifically with respect to claiming working hours while absent. That being said, it may not be your job to get involved in this. I say "may" because it depends on security rules in some cases. In my former job with go...
by The Wizard
Sat Apr 25, 2015 6:11 am
 
Forum: Personal Finance (Not Investing)
Topic: deadbeat in group
Replies: 3
Views: 1256

Re: Pro rate RMD if retiring middle of year?

Excellent question.
Alan S. will know for sure.
I'll make a wild guess thatyes, it can be prorated.
Let's see what the right answer is...

Edit: I stand corrected...
by The Wizard
Sat Apr 25, 2015 5:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Prorate RMD if retiring middle of year?
Replies: 10
Views: 646

Re: Inflation's impact on retirement savings - confused

30+ years is a long time. Even Nisiprius may possibly be overanalyzing it. Best proven thing to do in to invest a healthy percentage of your income each month and you should be OK. That means at least 15% of gross income starting early. And at least 50% of that in broad based stock funds. As you get...
by The Wizard
Sat Apr 25, 2015 5:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Inflation's impact on retirement savings - confused
Replies: 16
Views: 1023

Re: Taxes are killing me

I just thought of something. If we claim tax exempt or maximum deductions, and use the money that would have been withheld for taxes to invest it into a business or real estate, will that work out financially... Where do you get the idea that this scheme would be remotely legal? You can invest your...
by The Wizard
Sat Apr 25, 2015 5:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Taxes are killing me
Replies: 21
Views: 2380

Re: Vanguard 500 Index Fund (VFINX) vs. ETF Version

larmewar wrote:When your VFINX reaches $10K you can convert to VFIAX. With the mutual funds, it is invest to add small amounts.

Lar

EASIER to add small amounts, you mean...
by The Wizard
Fri Apr 24, 2015 11:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard 500 Index Fund (VFINX) vs. ETF Version
Replies: 7
Views: 902

Re: Master Thread for Metro Boston's Chapter (MA)

rob wrote:Hey, You guys mind another person in the group? I should be able to make the 30th.

Make sure Siamond has your email address one way or another...
by The Wizard
Fri Apr 24, 2015 8:37 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Master Thread for Metro Boston's Chapter (MA)
Replies: 104
Views: 7448

Re: Living in New Hampshire?

WOOD heat is probably more common in lots of NH rather than oil. It's a do-it-yourself thing for lots of New Englanders, myself for instance... Me too ! Both wood stove and pellet stoves for most on my heating needs, 32 here this morning and have the pellet stove on now.Starting to stack my cord wo...
by The Wizard
Fri Apr 24, 2015 5:12 pm
 
Forum: Personal Consumer Issues
Topic: Living in New Hampshire?
Replies: 35
Views: 2402

Re: As Cogntivity Slips, Financial Skills Often the First to

So do driving skills go first or financial skills? I'm only 65 and think I'm still on top of both. I could, of course, be mistaken... you are likely mistaken about your driving skills, but apparently, so is most of the world. Perhaps, but I've heard the same is true of financial management, that on...
by The Wizard
Fri Apr 24, 2015 5:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: As Cognition Slips, Financial Skills Often the First to Go
Replies: 22
Views: 1532

Re: Master Thread for Metro Boston's Chapter (MA)

Plan 2 works for me, partly for the selfish reason that I have some other things I usually do on Saturday mornings...
by The Wizard
Fri Apr 24, 2015 4:53 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Master Thread for Metro Boston's Chapter (MA)
Replies: 104
Views: 7448

Re: As Cogntivity Slips, Financial Skills Often the First to

So do driving skills go first or financial skills?
I'm only 65 and think I'm still on top of both.
I could, of course, be mistaken...
by The Wizard
Fri Apr 24, 2015 4:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: As Cognition Slips, Financial Skills Often the First to Go
Replies: 22
Views: 1532

Re: Marginal benefit of spending more on car

Savvy wrote:Buy a used 2010 Honda Civic for the same reason we did (as our only car):

Cheap, Safe, Reliable, and Fuel Efficient.

What else could you need?
Savvy

How does that address the benefit of spending more?
It does not...
by The Wizard
Fri Apr 24, 2015 4:08 pm
 
Forum: Personal Consumer Issues
Topic: Marginal benefit of spending more on car
Replies: 67
Views: 4693

Re: As Cogntivity Slips, Financial Skills Often the First to

...no, there is no such word as "cognitivity." Yet. This is weird, but just a few seconds after I read nisiprius' post, I re-clicked on the nytimes link, and the headline had been changed from "As Cognitivity Slips..." to "As Cognition Slips..." Apparently the headline...
by The Wizard
Fri Apr 24, 2015 4:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: As Cognition Slips, Financial Skills Often the First to Go
Replies: 22
Views: 1532

Re: Living in New Hampshire?

If you live in NH and work in MA, just commute during off hours and its not bad, if your boss allows it.
In my part-time retiree work, I tend to get on 93 in Reading at 5:30 am and get into Cambridge at 6.
Back when I worked full-time, I never did that, of course...
by The Wizard
Fri Apr 24, 2015 3:55 pm
 
Forum: Personal Consumer Issues
Topic: Living in New Hampshire?
Replies: 35
Views: 2402

Re: Giving Vanguard VTSMX as a Wedding Gift

There's a half chance the newlyweds would just SELL that VTSMX within a month or so, to help with startup expenses.
I did that with a $50 savings bond some decades back...
by The Wizard
Fri Apr 24, 2015 11:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Giving Vanguard VTSMX as a Wedding Gift
Replies: 34
Views: 2374

Re: 2 million dollar mistake meeting with MIL's financial gu

If you sit down with a Chartered Life Underwriter insurance agent, he's going to try selling you insurance.
What's so surprising about that?

Bigger question is: why does the OP need ANY life insurance?
I didn't see any offspring or dependents mentioned up front...
by The Wizard
Fri Apr 24, 2015 4:47 am
 
Forum: Personal Finance (Not Investing)
Topic: 2 million dollar mistake meeting with MIL's financial guy
Replies: 23
Views: 4828

Re: Help re Car

Mustang convertible. I know American cars generally have had a poor reputation, but they've improved of late and the Mustang is decent. I agree. I've a 2008 Mustang convertible, V-6. No issues after 78,000 miles, aside from new battery, tires and brakes. Miata can be a bit small in the cargo dept, ...
by The Wizard
Thu Apr 23, 2015 5:50 pm
 
Forum: Personal Consumer Issues
Topic: Help re Car
Replies: 19
Views: 1517

Re: Marginal benefit of spending more on car

Protagonist mentions a four fold increase in car cost. Hmmm, that's large, hardly in the realm of marginal benefit analysis. Let's look at the Honda Fit: $15.6k for the base LX model. $19.9k for the upscale EX-L model. No time to detail the differences, but I think that's closer to the subject at ha...
by The Wizard
Thu Apr 23, 2015 5:08 pm
 
Forum: Personal Consumer Issues
Topic: Marginal benefit of spending more on car
Replies: 67
Views: 4693

Re: Marginal benefit of spending more on car

My leather seats don't get hot & sticky in the summer, be careful you're not talking vinyl.
But I don't know any recent cars with vinyl anymore.
I usually try to get a light leather color to lessen the heat absorption...
by The Wizard
Thu Apr 23, 2015 4:59 pm
 
Forum: Personal Consumer Issues
Topic: Marginal benefit of spending more on car
Replies: 67
Views: 4693

Re: Do you Bogleheads really follow the 3-4% SWR rule?

I would guess that there are many bogleheads who have planned for years and in retirement they take a negative amount . By that, I mean, not only do they not withdraw anything, but they are also saving part of their yearly income. Even if they have to take RMDs, that does not mean they have to spen...
by The Wizard
Thu Apr 23, 2015 2:53 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 45
Views: 2958

Re: Do you Bogleheads really follow the 3-4% SWR rule?

It turns out I'm withdrawing almost exactly 4% from my nest egg this year to supplement my annuity income. This 4% is actually a fixed dollar amount that was closer to 5% when I began it two years ago, but with the growth of my nest egg the percentage has declined. This "4%" is also in lie...
by The Wizard
Thu Apr 23, 2015 2:41 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 45
Views: 2958

Re: Living in New Hampshire?

WOOD heat is probably more common in lots of NH rather than oil.
It's a do-it-yourself thing for lots of New Englanders, myself for instance...
by The Wizard
Thu Apr 23, 2015 1:37 pm
 
Forum: Personal Consumer Issues
Topic: Living in New Hampshire?
Replies: 35
Views: 2402

Re: SWR rule and Social Security

Probably a good idea to put together a spreadsheet showing where monthly income is coming from for first year of retirement through age 72 or so.
That's what I did.
If married, then typically, one spouse starts SS earlier.
I would use 0% growth on that $700K to be conservative...
by The Wizard
Thu Apr 23, 2015 1:27 pm
 
Forum: Investing - Theory, News & General
Topic: SWR rule and Social Security
Replies: 13
Views: 1067

Re: SWR rule and Social Security

You'll need to "bridge" the gap to the start of SS somehow.
So maybe go with 5% withdrawals for 15 years, then cut back to 3%?
You'll have to run your own numbers.
Longer the bridge period is, the more risky if withdrawal rate is too high...
by The Wizard
Thu Apr 23, 2015 1:18 pm
 
Forum: Investing - Theory, News & General
Topic: SWR rule and Social Security
Replies: 13
Views: 1067

Re: Best tool for MF performance charting?

OK, but someone has to ask, Why? :happy Paul Lots of good reasons. I might want to compare how my TIAA-CREF funds did vs certain Vanguard equivalents lately. Or get a feeling for volatility of the Extended Market fund vs Total Stock Market. Default is probably just to keep a list of all my "fa...
by The Wizard
Thu Apr 23, 2015 1:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best tool for MF performance charting?
Replies: 2
Views: 191

Best tool for MF performance charting?

I'm looking for a tool to plot Growth of $10,000 similar to how M* does it, but more personalized. It needs to have the following functionality: 1) It needs to be able to SAVE my choices of Mutual Funds for future use, probably no more than a few dozen of them. 2) I need to be able easily to SELECT ...
by The Wizard
Thu Apr 23, 2015 12:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best tool for MF performance charting?
Replies: 2
Views: 191

Re: Marginal benefit of spending more on car

Point taken. Interesting that things like heated seats, blue tooth connectivity, and adaptive cruise control are so important to folks. I still see a car as just a way to get from point A to point B. Perhaps because I've always driven older cars, I never got into those things, so I don't know what ...
by The Wizard
Thu Apr 23, 2015 10:48 am
 
Forum: Personal Consumer Issues
Topic: Marginal benefit of spending more on car
Replies: 67
Views: 4693

Re: Is tax loss harvesting that powerful ?

TLHing makes really good sense for funds that in all likelihood will be donated to charity or left to your heirs upon your demise. If you have every intention of selling those funds for living expenses in future years, it makes less good sense. This is because you are lowering your basis in that ass...
by The Wizard
Thu Apr 23, 2015 10:25 am
 
Forum: Investing - Theory, News & General
Topic: Is tax loss harvesting that powerful ?
Replies: 44
Views: 2812

Re: Marginal benefit of spending more on car

To me the point of spending more on a car is to get the features I want and the 'feel' I want so that every time I get into the car I do so with a feeling of satisfaction. I'll spend more on heated seats because it really sucks getting into a cold car at 6am on a February morning. I'll spend more o...
by The Wizard
Thu Apr 23, 2015 10:12 am
 
Forum: Personal Consumer Issues
Topic: Marginal benefit of spending more on car
Replies: 67
Views: 4693

Re: Adequate alternatives to TurboTax?

I used TaxAct successfully this year, at no charge. This was first time I used ANY tax software for my Federal return. I continued to do my MA state income tax using their well-designed web interface software. TaxAct kept nagging me to buy their state return option, but I successfully ignored it. I ...
by The Wizard
Thu Apr 23, 2015 9:45 am
 
Forum: Personal Consumer Issues
Topic: Adequate alternatives to TurboTax?
Replies: 28
Views: 1523

Re: Drive a local car, rent for trips ?

The car purchase thread got me wondering. My local car is a 2009 Vibe. great for driving up to an hour. (can reach both kids) But when I make a longer trip I rent something more comfortable from our local Enterprise. 600 mile 4 day weekend trips often average 45 cpm all up for a full size car. Does...
by The Wizard
Thu Apr 23, 2015 9:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Drive a local car, rent for trips ?
Replies: 28
Views: 2000

Re: System Risk

An ordinary brokerage account is like a safe deposit box. Everything listed on your statement is an actual asset that's really there, and earmarked as belonging to you. A mutual fund is also like a safe deposit box. Everything listed on the semiannual report is really there--being held by the custo...
by The Wizard
Thu Apr 23, 2015 9:35 am
 
Forum: Investing - Theory, News & General
Topic: System Risk
Replies: 15
Views: 1284

Re: System Risk

Yes, it's remotely possible that a black swan type of computer system failure could erase all ownership records. The firm still has the $XXX Billion of assets, they just don't know how much each of their thousands of customers own. You'd have to send in evidence of what you owned so they could resto...
by The Wizard
Thu Apr 23, 2015 8:28 am
 
Forum: Investing - Theory, News & General
Topic: System Risk
Replies: 15
Views: 1284

Re: What rate of return do you use when planning for retirem

Similar to RM and PE, I never projected ahead back when I was in the accumulation phase. I did monitor my accumulation using a spreadsheet for a while, both the dollar amount and the ratio of it to my salary. I tended to focus more on my Savings Rate, which was something I could control. Now in reti...
by The Wizard
Thu Apr 23, 2015 4:12 am
 
Forum: Investing - Theory, News & General
Topic: What rate of return do you use when planning for retirement?
Replies: 59
Views: 4323

Re: Kitces on Asset Location

A brief synopsis of this article is: it's sometimes better to hold stocks in a tax-sheltered IRA and bonds in a taxable account, rather than the other way around, as the Wiki tries to explain on Tax-Efficient Placement.
You'll have to read the article to find what two things can cause this reversal...
by The Wizard
Wed Apr 22, 2015 2:18 pm
 
Forum: Investing - Theory, News & General
Topic: Kitces on Asset Location
Replies: 2
Views: 632

Re: Another TREA question

There's nothing to compare TREA with to decide if its ER is high or low. It's one of a kind.
Just focus on its total return and its lack of volatility...
by The Wizard
Wed Apr 22, 2015 6:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Another TREA question
Replies: 6
Views: 437

Re: Visiting Nashville during the summer

tenkuky wrote:Second the Parthenon
Been inside
Quite nice
To me, Nashville is all about amazing eating so I tend to skip the structures

I thought Nashville was all about Country Music...
by The Wizard
Wed Apr 22, 2015 4:40 am
 
Forum: Personal Consumer Issues
Topic: Visiting Nashville during the summer
Replies: 28
Views: 1204

Re: Cruises

LiveSimple wrote:AAA
Costco

Thing with cruises is, there are different quality levels, between different brands.
You want consumer-based feedback on this first,to decide on one or two cruise lines.
Then comes the shopping for a good price...
by The Wizard
Tue Apr 21, 2015 2:06 pm
 
Forum: Personal Consumer Issues
Topic: Cruises
Replies: 24
Views: 2247

Re: Taking Care Of Leaves

I use a leaf- grinder, aka a chipper-shredder.
Collect the leaves with a riding mower or with a rake.
Then pulverize them and use them for mulch.
It's great fun and you get to take a shower afterwards...
by The Wizard
Tue Apr 21, 2015 1:59 pm
 
Forum: Personal Consumer Issues
Topic: Taking Care Of Leaves
Replies: 18
Views: 1272

Re: Cruises

Probably first by learning up at cruisecritic.com.
I've done three cruises on 20 years and I'm not a huge fan of them.
But I am pondering something in Alaska and something in France, either barge or riverboat...
by The Wizard
Tue Apr 21, 2015 1:51 pm
 
Forum: Personal Consumer Issues
Topic: Cruises
Replies: 24
Views: 2247

Re: Poll: Work adjustment options

I retired two years ago after 40+ years, from 40 hrs/wk to zero, cold turkey.
I had too many things needing doing, so part-time didn't fit me. I did come back sporadic part-time after 18 months on a task I previously worked.
I think it depends mainly on your other interests. What are yours?
by The Wizard
Tue Apr 21, 2015 2:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Work adjustment options
Replies: 19
Views: 1400

Re: What is safest vehicle on the road today?

A cement mixer truck loaded with 12 cubic yards of concrete will probably win most head-on collisions, if that's the main scoring metric...
by The Wizard
Mon Apr 20, 2015 8:36 pm
 
Forum: Personal Consumer Issues
Topic: [What is safest vehicle on the road today that I can buy?]
Replies: 83
Views: 4434
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