Search found 811 matches

by supersharpie
Tue Feb 13, 2024 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Have you ever replaced a perfectly fine car just because?
Replies: 111
Views: 8485

Re: Have you ever replaced a perfectly fine car just because?

kumjan wrote: Sun Feb 11, 2024 9:26 am I often find myself wanting to change my perfectly fine Subaru Forester for a gently used Lexus LX 570.

I considered this exact choice when I was buying the Forester but couldn't stomach the $65k+ price tag of LX when I can buy (and did buy!) a Forester half that. Yet I can't stop thinking about it.

I also fantasize about taking the LX, with a teardrop camper, on long road trip through the Rockies.

We can afford it (income 500+) but I consider that as a really bad choice. Wouldn't you??
Life is short, your income is high. Buy the Lexus.
by supersharpie
Tue Jan 16, 2024 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to be a first-time home buyer if I intend to move in three years?
Replies: 54
Views: 6575

Re: Best way to be a first-time home buyer if I intend to move in three years?

Hello. I have tried saving for a down payment the past four years while homes in my area have increased 80%. My wife decided she wants a house, as all of our friends have one except for us, even if it's a starter home. It will probably take us another 3-4 years to be able to afford "a nice house" and we've already been renting for 7 years and don't want to do it for 3-4 more years. My question: What is the most cost effective way to be a first-time home buyer now for a starter home with the understanding I'll be looking to buy a larger home in 2027 or 2028. Thank you. Just a word of warning: there is a good chance you will lose money only owning for three years. You have to factor in taxes, fees, commissions, home repairs, and th...
by supersharpie
Mon Jan 01, 2024 10:01 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562344

Re: Post your Financial Milestone Announcements Here

Just ran our (ages 39 & 40) numbers and was pleased to find out that our net worth crossed the 1.5M threshold for the first time :D
by supersharpie
Sat Dec 16, 2023 3:29 am
Forum: Personal Finance (Not Investing)
Topic: Retiring at age 40 with $2.4M
Replies: 210
Views: 134407

Re: Retiring at age 40 with $2.4M

sperry8 wrote: Thu Dec 14, 2023 9:59 pm
muffins14 wrote: Thu Dec 14, 2023 9:28 pm How are you going to spend your 16 waking hours each day?
I retired in my late 30s and have not had one ounce of trouble filling my days with joy rather than filling those 16 hours with the way society says I should. Life is way too short and this planet way too wonderful to be short on ideas of how to fill ones time while here.
Cheers, I love and share your perspective! We will probably be retiring about 10 years later than you, but with the same mindset. We will have absolutely no problem filling our free time as early retirees.
by supersharpie
Sat Dec 16, 2023 3:00 am
Forum: Personal Finance (Not Investing)
Topic: When Did You Feel Financially Secure and Comfortable?
Replies: 134
Views: 29409

Re: When Did You Feel Financially Secure and Comfortable?

When our retirement assets exceeded $1,000,000 at age 39 as DINKs this past summer, with net worth approaching $1,500,000.

It's nice to realize you can retire (albeit very modestly) whenever you want. We will probably still plug away for another 5-10 years before calling it quits.

Our biggest consession to lifestyle creep is that we buy whatever we want when grocery shopping, without regard to price, although we still stock up when there is a good deal on a product we consume regularly.
by supersharpie
Tue Nov 14, 2023 5:14 pm
Forum: Personal Consumer Issues
Topic: What is Medicare Advantage "gotch ya!" ???
Replies: 271
Views: 29303

Re: What is Medicare Advantage "gotch ya!" ???

More like "Medicare Disadvantage" plans imo.

Medicare + Medigap + Medicare Part D is the way to go for those who can afford it (aka "nearly all Bogleheads").
by supersharpie
Tue Jun 06, 2023 4:21 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562344

Re: Post your Financial Milestone Announcements Here

ruralavalon wrote: Tue Jun 06, 2023 1:52 pm
supersharpie wrote: Tue Jun 06, 2023 11:51 am My wife and I (both 39) have had a net worth, including home equity, north of $1,000,000 for about two years now.

Today I felt strongly compelled to check our investment balances for the first time in over a year.

Well, lo and behold, our investment balances topped $1,000,000 for the first time ever as of COB yesterday. The vast majority of this is in our 401k and Roth IRA accounts.

We just started taxable investing earlier this year, which at present only accounts for about 2% of our total balance. We have some work to do in that area, but it seems we are well on our way to our goal of FIRE by 50.
Congratulations on joining the 2 comma club :D .

Keep it up.
:sharebeer
by supersharpie
Tue Jun 06, 2023 11:51 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562344

Re: Post your Financial Milestone Announcements Here

My wife and I (both 39) have had a net worth, including home equity, north of $1,000,000 for about two years now.

Today I felt strongly compelled to check our investment balances for the first time in over a year.

Well, lo and behold, our investment balances topped $1,000,000 for the first time ever as of COB yesterday. The vast majority of this is in our 401k and Roth IRA accounts.

We just started taxable investing earlier this year, which at present only accounts for about 2% of our total balance. We have some work to do in that area, but it seems we are well on our way to our goal of FIRE by 50.
by supersharpie
Tue May 09, 2023 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving employer without notice
Replies: 209
Views: 17498

Re: Leaving employer without notice

CuriousJoe wrote: Tue May 09, 2023 11:28 am One may want to start the new job before giving notice to the old employer, if he/she doesn't want to get a nasty surprise if the new employer recinds the offer and you have already given notice to old job
That's absolutely terrible advice.
by supersharpie
Tue May 09, 2023 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Leaving employer without notice
Replies: 209
Views: 17498

Re: Leaving employer without notice

Consequence is really burning a bridge. In my Mega Corp you would be marked not eligible for rehire. As a manger if our paths crossed again I would not forget. To less of a degree, your co-workers who get the unexpected worked shifted to them might also develop ill will towards you, that may or may not matter in the future. Ironically, in our mega corp for most roles and assuming you a good employee, if your going to a select number of direct competitors you will be exited the day you give notice (system access terminated in a couple hours)…but simply offering two weeks will keep you eligible for rehire. As for accrued vacation, in most states your company will need to buy you out upon separation. The double standard is wild in the US. You...
by supersharpie
Tue May 09, 2023 11:24 am
Forum: Personal Finance (Not Investing)
Topic: My Brother Liquidated His Entire Retirement and I'm ... Jealous?
Replies: 224
Views: 27216

Re: My Brother Liquidated His Entire Retirement and I'm ... Jealous?

Carguy85 wrote: Tue May 09, 2023 11:22 am Just think if he chose the “safe” route to stick it out and then the closer to the fully vested pension the more the golden handcuffs are tightened. Meanwhile he does what’s all to common and try’s to distract himself from the unhappiness with more stuff/payments that only makes things worse.
It's the American way!!!
by supersharpie
Tue May 09, 2023 11:24 am
Forum: Personal Finance (Not Investing)
Topic: My Brother Liquidated His Entire Retirement and I'm ... Jealous?
Replies: 224
Views: 27216

Re: My Brother Liquidated His Entire Retirement and I'm ... Jealous?

oldfatguy wrote: Tue May 09, 2023 8:11 am
CoastLawyer2030 wrote: Tue May 09, 2023 8:05 am
I look at my family's own balance sheet and realize we could quite easily do the same. We could actually pay off all of our debt and still have a couple hundred thousand in retirement.
Is that a lot?
It's all subjective, but it is a lot more than most totally debt free thirtysomethings have saved for retirement.
by supersharpie
Fri Apr 28, 2023 9:22 am
Forum: Investing - Theory, News & General
Topic: Best brokerage platform for taxable investing?
Replies: 7
Views: 1424

Best brokerage platform for taxable investing?

Caveat: We already have a Robinhood account with some "play money" invested in a little crypto and a few individual stocks. However, starting in May my wife and I plan to start investing assets in excess of our emergency fund each month into a taxable account.

Given that, we are shopping around for the best low cost brokerage platform. What has worked best for your own taxable investment endeavors? If possible, provide the pros and cons of your preferred platform.

Thanks!
by supersharpie
Mon Apr 03, 2023 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Is it a bad decision to pay off a low interest mortgage early?
Replies: 90
Views: 9933

Re: Is it a bad decision to pay off a low interest mortgage early?

Moving in 5-10 years. Mortgage could be paid off before (or right around) then with normal payments. You have “only” 30k in non-retirement funds. You want to move west. Is that more or less expensive? I’d be saving in taxable rather than paying extra to the mortgage. Just for curiosity. What is your current loan balance? Everyone is hyper focused on the rates Loan balance is 85k. We plan to move to a higher COL area. It may not be a forever move, but we are going to give it a go for at least three years (will very likely be renters) and then reevaluate. I realize making this move isn't particularly "Boglehead-like," or "super sharp" for that matter :D, but we are letting our hearts, rather than heads, guide us in this i...
by supersharpie
Fri Mar 31, 2023 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Is it a bad decision to pay off a low interest mortgage early?
Replies: 90
Views: 9933

Re: Is it a bad decision to pay off a low interest mortgage early?

Mike Scott wrote: Fri Mar 31, 2023 10:09 am I would start a new question about tax efficient taxable accounts. Generally, you end up with a S&P 500 or a total US index mutual fund or etf and then do AA balancing in your tax advantaged accounts.
Got it, thanks! I will probably just use the search feature as I am sure there already tons of threads on the topic.
by supersharpie
Fri Mar 31, 2023 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Is it a bad decision to pay off a low interest mortgage early?
Replies: 90
Views: 9933

Re: Is it a bad decision to pay off a low interest mortgage early?

Thanks all, we went into this hoping to be dissuaded from following what we knew to be a suboptimal, though enticingly simple, plan.

Mission accomplished!

We will open up a taxable account tied to the checking account we currently have labeled our "housing account" and invest our monthly excess income in index or mutual funds.

This will be our first experience with taxable investing. Do you all have any fund recommendations?
by supersharpie
Fri Mar 31, 2023 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Is it a bad decision to pay off a low interest mortgage early?
Replies: 90
Views: 9933

Re: Is it a bad decision to pay off a low interest mortgage early?

Watty wrote: Fri Mar 31, 2023 9:49 am
supersharpie wrote: Fri Mar 31, 2023 8:37 am most recently in 2014 at 3.25%.
You post did not say anything about your car ownerships plans.

It don't make a lot of sense to pay down your mortgage if you would then then to take out a 6% car loan in a couple of years.
We are a one car (2015 Honda Civic with 30k miles) household. We plan to keep it until we move west and buy an electric vehicle in cash.
by supersharpie
Fri Mar 31, 2023 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Is it a bad decision to pay off a low interest mortgage early?
Replies: 90
Views: 9933

Re: Is it a bad decision to pay off a low interest mortgage early?

However, being entirely debt free at 41 or 42 years old would feel great. supersharpie, 1) Until and unless you are financially independent, do not pay down or pay off your mortgage. 2) Being debt free but not financially independence serves zero purposes. You still could be financially destroyed with involuntary early retirement. "we already are maxing out our 401k and Roth IRA contributions and will continue to do so, " 3) What is your annual expense? With 230K of gross income, this simply mean you save about 60K to 70K per year. But, your annual expense is more than 100K. 4) If your annual expense is 100K, you need at least 23X 100K = 3.3 million before you can consider financially independent. Your portfolio is only 1 million...
by supersharpie
Fri Mar 31, 2023 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Is it a bad decision to pay off a low interest mortgage early?
Replies: 90
Views: 9933

Re: Is it a bad decision to pay off a low interest mortgage early?

2) Being debt free but not financially independent serves zero purposes. It's not often that I find myself in agreement with KlangFool but this line is gold. Everything financial, debt included, is simply a means to the goal of financial independence and is neither good nor bad in itself; only for its utility in helping you reach your goals. Also, if you're planning to sell before it would otherwise be paid off, I would absolutely not accelerate the payoff. First, you're not getting the guaranteed 3.25% return for the life of the mortgage, you're getting it until you would have sold the house anyway. So there's a reinvestment risk - when you sell the house you then have to take that equity and either put it in a new house or invest it some...
by supersharpie
Fri Mar 31, 2023 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Is it a bad decision to pay off a low interest mortgage early?
Replies: 90
Views: 9933

Re: Is it a bad decision to pay off a low interest mortgage early?

However, being entirely debt free at 41 or 42 years old would feel great. supersharpie, 1) Until and unless you are financially independent, do not pay down or pay off your mortgage. 2) Being debt free but not financially independence serves zero purposes. You still could be financially destroyed with involuntary early retirement. "we already are maxing out our 401k and Roth IRA contributions and will continue to do so, " 3) What is your annual expense? With 230K of gross income, this simply mean you save about 60K to 70K per year. But, your annual expense is more than 100K. 4) If your annual expense is 100K, you need at least 23X 100K = 3.3 million before you can consider financially independent. Your portfolio is only 1 million...
by supersharpie
Fri Mar 31, 2023 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Is it a bad decision to pay off a low interest mortgage early?
Replies: 90
Views: 9933

Is it a bad decision to pay off a low interest mortgage early?

Some basic info about our situation: My wife and I are 39 year old DINKs with no plans of having children. Net worth: ~1.33M (1M in retirement funds, 300k in home equity, 30k in cash) Income: ~230k gross We bought our home with a 30 year mortgage and then refinanced at lower rates twice, most recently in 2014 at 3.25%. Our normal payoff date is 12/2029. Earlier this month we, somewhat impulsively, made a principal curtailment payment of 22k which knocked over a year off that date. The money was sitting in our housing account earning very little interest, so it was a smarter choice vs maintaining the status quo. Now the question is whether we should start making monthly curtailment payments of $1000, plus apply my wife's annual bonus (~6-8k ...
by supersharpie
Sat Feb 11, 2023 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse (Age 37) Going Back to University
Replies: 196
Views: 17193

Re: Spouse (Age 37) Going Back to University

OP, explain to your wife that a degree from Capella is the same as having no degree at all. It's a diploma mill and most hiring managers treat the degree for what it is, as worthless as the paper it is printed on. It is probably not going to improve her employment prospects, let alone land her the professional job of her dreams.

Is she concerned she won't cut it at a traditional school and is instead looking for the easiest path towards a degree? I think you have a right, given that you will be financially supporting her, to get a basic answer to the question, "why Capella?" Just tell her you are looking for an explanation, not an argument.
by supersharpie
Wed Feb 01, 2023 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: What Age & How Much Money? (Your Plan)
Replies: 185
Views: 26030

Re: What Age & How Much Money? (Your Plan)

39
~1.2M
2.5M

Retirement date is up in the air, but I may downshift from my professional job to part-time gig work within the next five years. I have no intention of working full-time beyond 48 years of age.

My wife and I are DINKs, so we have a ton of flexibility.
by supersharpie
Fri Jan 06, 2023 11:26 pm
Forum: Personal Consumer Issues
Topic: Average miles display dropping
Replies: 30
Views: 2817

Re: Average miles display dropping

Winter fuel blend = lower fuel efficiency
by supersharpie
Wed Dec 21, 2022 5:42 am
Forum: Personal Consumer Issues
Topic: What are your LEAST favorite vacation destinations
Replies: 399
Views: 43306

Re: What are your LEAST favorite vacation destinations

I don't like the Los Angeles area at all. However, my wife and I plan to go back in 2028 solely for the Summer Olympics. Trust me, there is a "right way" to do LA for everyone. Some tips for next time... Places to go and places to eat: WeHo: The Comedy Store (you are basically guaranteed to see some big names on a nightly basis, especially in the Main Room) The Hollywood Museum (not touristy even though it is right off the Walk of Fame, tons of artifacts from the golden era of Hollywood to the present day) Hollywood Forever Cemetery Runyon Canyon DTLA: The Broad (museum) The Last Bookstore Grand Central Market The Bradbury Building (featured in many films, including Blade Runner) Sonoratown (Mexican) Silver Lake/Los Feliz/Atwater...
by supersharpie
Thu Oct 13, 2022 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security [and Death of Spouse]
Replies: 30
Views: 4689

Re: Social Security

I would appreciate any insight you may have on a Social Security scenario involving the death of a spouse. Husband is 66, and turns 67 in January 2023. Wife 57, passed away in 2022. No children under age 21. Her FRA is $2,200. His FRA is unknown at the moment, likely less than hers. Can anyone provide a high-level description of the options available to the husband? He does have work income. Thanks in advance. The answer in this case is simple: he should file immediately. He has already reached his FRA, which means his survivor rate will not grown any higher. He should stay on the survivor benefit at least until his retirement rate maxes out when he turns 70. He should file for retirement at 70 if that benefit rate is higher than the survi...
by supersharpie
Thu Oct 13, 2022 12:19 pm
Forum: Personal Investments
Topic: Ready to start taxable investing but...
Replies: 11
Views: 1145

Re: Ready to start taxable investing but...

I'm wondering how these numbers work out for retirement in the next 5-10 years. You want another 250-500K for the new CA house so that means saving 25K-50K per year. Will that leave money available to contribute to your 401K? Your 401K is $1million at present, lets suppose it grows to $1.5 million by retirement. At a 4% rule of thumb withdrawal rate that gives a gross income of $72K on which you'd have to pay taxes. You're spending $72K after-tax right now. And 4% probably needs to be dialed down for FIRE retirees since you need to fund an extra 15 years or more of retirement. Without a mortgage, our annual expenses run around $50,000. Our pensions and Social Security should be more than adequate to cover those expenses for the majority of...
by supersharpie
Thu Oct 13, 2022 11:41 am
Forum: Personal Investments
Topic: Ready to start taxable investing but...
Replies: 11
Views: 1145

Re: Ready to start taxable investing but...

Just curious - what's your retirement figure if you have one? Assuming we own a place in SoCal outright, then we would be looking to have at least a $2,000,000 nest egg (in 2022 dollars) before we would take the plunge. We will adjust that figure accordingly for inflation in the intervening years. We both will have pensions kicking in around age 60, plus Social Security, so we will probably have at 50%+ of our expenses from 60 on covered by those sources. My preference would be to continue working full-time out here on the east coast until we are positioned to make an all cash purchase out west. Then after moving, continue working for at least another year to determine our new monthly expenses. We are much more tied to making this move the...
by supersharpie
Thu Oct 13, 2022 10:53 am
Forum: Personal Investments
Topic: Ready to start taxable investing but...
Replies: 11
Views: 1145

Re: Ready to start taxable investing but...

Thanks! I am thinking of buying $20,000 in I bonds and then waiting until the new year, after our Roth IRA contributions have been made, to start investing in equities.
by supersharpie
Thu Oct 13, 2022 9:29 am
Forum: Personal Investments
Topic: Ready to start taxable investing but...
Replies: 11
Views: 1145

Ready to start taxable investing but...

...suffering paralysis by analysis. I am 39, my wife is 38 and we live in Delaware. We are, and will remain, DINKs. We currently have a net worth of approximately $1,000,000 and plan to retire somewhere between 45 and 50. To this point we have simply been maxing out our 401ks (target date funds)/Roth IRAs (Wellesley Admiral). However, we have accumulated $60,000 in cash and, especially in these inflationary times, realize that it is foolish to keep that much parked. With that said, I really don't know a thing about taxable investing and am struggling to determine how much/where we should invest. Our monthly expenses average out to around $6000 so I figured it would be wise to keep $36,000 in cash and invest the other $24,000. With that said...
by supersharpie
Mon Jan 24, 2022 2:53 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 36221
Views: 4652639

Re: U.S. stocks in free fall

I don't know which is wilder:

The finishes to the two NFL playoff games yesterday, or today's market performance!

Was there anything in particular that spurred the turnaround this afternoon?
by supersharpie
Thu Nov 11, 2021 5:32 pm
Forum: Investing - Theory, News & General
Topic: Morningstar released their new report on SWR. [Safe Withdrawal Rate]
Replies: 255
Views: 23051

Re: Morningstar released their new report on SWR. [Safe Withdrawal Rate]

000 wrote: Thu Nov 11, 2021 5:28 pm The fact that the cautionmongers have been 'wrong' for so long should make one even more cautious, not less.

Bull markets top when they run out of buyers.
Or just unclench, spend what you want, and live off of Social Security if worst comes to worst.
by supersharpie
Thu Nov 11, 2021 4:50 pm
Forum: Investing - Theory, News & General
Topic: Morningstar released their new report on SWR. [Safe Withdrawal Rate]
Replies: 255
Views: 23051

Re: 4% no good anymore

However, if the experts are convinced that the next 30 years will be worse than every other 30 year period in US history, then it’s complete garbage. They can’t know that. They're not convinced that the next 30 years will be worse. They're convinced it could be worse. To take one example, risk management professionals look in the past for information on the so-called worst-case scenario and use it to estimate future risks—this method is called “stress testing.” They take the worst historical recession, the worst war, the worst historical move in interest rates, or the worst point in unemployment as an exact estimate for the worst future outcome. But they never notice the following inconsistency: this so-called worst-case event, when it hap...
by supersharpie
Thu Nov 11, 2021 3:13 pm
Forum: Investing - Theory, News & General
Topic: Morningstar released their new report on SWR. [Safe Withdrawal Rate]
Replies: 255
Views: 23051

Re: 4% no good anymore

" Retirees likely have other pots of money like Social Security to leverage" Yeah, go figure. Well, for the vast majority of Americans, it's more like, "Most retirees don't have any pots of money besides Social Security, so this article doesn't matter to most people." Precisely. Those people manage to keep a roof over their head and food on the table thanks to Social Security. If you had a decent career and are willing to live frugally in retirement, you don't need to worry about asset management. Why? Because you have $20,000-$40,000 in annual inflation protected income from the government, $40,000-$80,000 if you are married to a retiree who had similar career earning, $30,000-$60,000 if you are married to someone who ...
by supersharpie
Thu Nov 11, 2021 2:52 pm
Forum: Investing - Theory, News & General
Topic: Morningstar released their new report on SWR. [Safe Withdrawal Rate]
Replies: 255
Views: 23051

Re: 4% no good anymore

Dottie57 wrote: Thu Nov 11, 2021 2:49 pm How many of these threads have been started like this one?
They are seemingly countless.
by supersharpie
Thu Nov 11, 2021 2:51 pm
Forum: Investing - Theory, News & General
Topic: Morningstar released their new report on SWR. [Safe Withdrawal Rate]
Replies: 255
Views: 23051

Re: 4% no good anymore

If anything, the 4% rule is going to leave you at the with me of your life with a huge pile of cash that you didn't get to spend during your "good years." That's to be expected. There is no way around it. It's longevity risk. Since you do not know how long you will spend in retirement, there is no way to avoid this. Average life expectancy at retirement age is about 20 years, but you could very possibly live 35 years or more in retirement. You can't risk planning for 20 years. You have to plan for the longest credible time in retirement. That means that if you only spend an average period of time in retirement, you will leave a huge pile of unspent cash. A single individual with a single lifetime acting in isolation cannot do any...
by supersharpie
Thu Nov 11, 2021 2:46 pm
Forum: Investing - Theory, News & General
Topic: Morningstar released their new report on SWR. [Safe Withdrawal Rate]
Replies: 255
Views: 23051

Re: 4% no good anymore

https://www.cnbc.com/2021/11/11/the-4percent-rule-a-popular-retirement-income-strategy-may-be-outdated.html Finally the experts are catching up it seems … Do folks agree that 4% is too optimistic ? No, I think the authors of the study are being too pessimistic. For over a decade now I have heard from the Wade Pfaus of the world about low expected future returns on stock investments and yet, what do ya know, market returns have remained as robust as ever. If anything, the 4% rule is going to leave you at the with me of your life with a huge pile of cash that you didn't get to spend during your "good years." Wade Pfau told us 3% was the new 4% starting in 2011... And has been repeating it ever since. Yup, he is quite dogmatic.
by supersharpie
Thu Nov 11, 2021 2:41 pm
Forum: Investing - Theory, News & General
Topic: Morningstar released their new report on SWR. [Safe Withdrawal Rate]
Replies: 255
Views: 23051

Re: 4% no good anymore

skor99 wrote: Thu Nov 11, 2021 2:22 pm https://www.cnbc.com/2021/11/11/the-4pe ... dated.html

Finally the experts are catching up it seems … Do folks agree that 4% is too optimistic ?
No, I think the authors of the study are being too pessimistic. For over a decade now I have heard from the Wade Pfaus of the world about low expected future returns on stock investments and yet, what do ya know, market returns have remained as robust as ever.

If anything, the 4% rule is going to leave you at the end of your life with a huge pile of cash that you didn't get to spend during your "good years."
by supersharpie
Fri Sep 10, 2021 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: When you don't agree wth SSA's calculated delayed retirement benefit
Replies: 22
Views: 2912

Re: When you don't agree wth SSA's calculated delayed retirement benefit

Thank you all, so far. Really haven't gotten to the question, but got the ball rolling. No, the "8% per yr increase" isn't compounded - it's cumulative. So if you delay from 66 to 70, the max increase is 132% of what ever your benefit at age 66 was. If you & SSA can agree on that FRA benefit. Compounding the increases would give retirees too much. Also, as said, I didn't have any wages (thus nothing to report or "get," that would affect my benefit. They clearly say on annual stmts, "we assumed for the last yr (or 2???), that you'd continue making about the same as in 2018, 2019." That makes it super simple. Those #'s are zero wages. So the only way their estimates seem low (& they agreed, on the phone)...
by supersharpie
Thu Sep 09, 2021 6:57 pm
Forum: Personal Investments
Topic: Applying for Social Security
Replies: 17
Views: 2323

Re: Applying for Social Security

Luckygirl wrote: Thu Sep 09, 2021 6:39 pm I had always just planned to apply in December when I turned 69. I know a few months earlier wouldn’t be a lot less money, but I wanted to maximize every little penny I could get🤣.
Just realize you will need to receive the higher rate until you are around 80 before you break even. You are playing catch up for the first decade+.
by supersharpie
Thu Sep 09, 2021 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: When you don't agree wth SSA's calculated delayed retirement benefit
Replies: 22
Views: 2912

Re: When you don't agree wth SSA's calculated delayed retirement benefit

ososnilknarf wrote: Thu Sep 09, 2021 6:27 pm
poboyee wrote: Thu Sep 09, 2021 6:12 pm Still, the "new" age 66 benefit x 1.16 didn't match their NEW benefit for age 68. Off by over $75, if the last age 66 benefit is correct. This should be simple, but maybe it isn't.
I'm questioning whether this is the correct calculation:
"new" age 66 benefit x 1.16

Would it not compound? Like this:
<age 66 benefit> * 1.08 * 1.08

Could that account for the difference in that calculation, at least?
The DRCs do not compound.
by supersharpie
Thu Sep 09, 2021 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: When you don't agree wth SSA's calculated delayed retirement benefit
Replies: 22
Views: 2912

Re: When you don't agree wth SSA's calculated delayed retirement benefit

This seems like it'd be easy for the SSA "benefit calculator" person, because we're dealing in whole years. They were polite, but would need to talk to supervisor on why their system?? is coming up with different benefit than they or I hand calculated, AS OF age 68y, 0mo ( my FRA = 66 ). Question: How do you know the correct SS benefit, when you turned FRA (66)? How do you verify their final value for FRA benefit? (no business or gov't ever makes mistakes). Any suggestions, other than file a request to see how they reached their values? When they quote one number, then another, you lose faith in their system's accuracy. Same when they answer other questions as “none,” to “how much will my spouse’s non-covered retirement annuity r...
by supersharpie
Tue Aug 03, 2021 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Were your last few career years a slog?
Replies: 83
Views: 12250

Re: Were your last few career years a slog?

I think that's a bit of an exaggeration. Plenty of people have a number of "good years" into their 70s and sometimes even 80s. A former colleague of mine just turned 95. He is still writing books and plans to go back to Paris later this summer on his annual trip (disrupted last year). I had a taxpayer stroll into one of my TaxAide sites a couple of years ago. She sat down and said: "I just turned 100 this week - shouldn't I not have to pay taxes once I am 100" and then she winked at me and we started her return. She did say she was irritated at her great grand niece who didn't want her to drive up to the center where we were doing taxes so it appears she does have some limitations. Yeah. I was really suprised by the pos...
by supersharpie
Sun Aug 01, 2021 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Were your last few career years a slog?
Replies: 83
Views: 12250

Re: Were your last few career years a slog?

I think that's a bit of an exaggeration. Plenty of people have a number of "good years" into their 70s and sometimes even 80s. A former colleague of mine just turned 95. He is still writing books and plans to go back to Paris later this summer on his annual trip (disrupted last year). I had a taxpayer stroll into one of my TaxAide sites a couple of years ago. She sat down and said: "I just turned 100 this week - shouldn't I not have to pay taxes once I am 100" and then she winked at me and we started her return. She did say she was irritated at her great grand niece who didn't want her to drive up to the center where we were doing taxes so it appears she does have some limitations. Yeah. I was really suprised by the pos...
by supersharpie
Sun Aug 01, 2021 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Were your last few career years a slog?
Replies: 83
Views: 12250

Re: Were your last few career years a slog?

climber2020 wrote: Sun Aug 01, 2021 9:53 am
investingdad wrote: Sun Aug 01, 2021 7:38 am If we were at 40x, I’d be done now. But we’re not quite there.
Why do you need 40x expenses? That may be a reasonable debate for a 30 year old looking to stop working, but you're almost 50, and if you're lucky, have maybe 10 to 20 good years left before your body irreversibly breaks down.
I think that's a bit of an exaggeration. Plenty of people have a number of "good years" into their 70s and sometimes even 80s.
by supersharpie
Sun Aug 01, 2021 11:40 am
Forum: Investing - Theory, News & General
Topic: Retiring in 2000 withdrawing fixed 5% ran out of money in 2016
Replies: 148
Views: 18870

Re: Retiring in 2000 withdrawing fixed 5% never ran out of money!

invest2bfree wrote: Sun Aug 01, 2021 9:18 am
seajay wrote: Sun Aug 01, 2021 9:14 am
invest2bfree wrote: Sun Aug 01, 2021 8:51 am Iam just making a point that if you are retiring at the market peak be very careful.
So are we at a market peak now? Or are just the 2010's decade gains a compensation for the 0% overall 2000's Bunny decade?
Cannot say, we are one bad event away from a market peak.

AAPL\TSLA and so many stocks other US Large Cap have substantial business from China.

With tensions in taiwan will China flex its muscles on US corporations?
China would be toast without American consumers buying their products. Neither side has a clear upper hand on the other. It is a co-dependent relationship.
by supersharpie
Sun Aug 01, 2021 11:38 am
Forum: Investing - Theory, News & General
Topic: Retiring in 2000 withdrawing fixed 5% ran out of money in 2016
Replies: 148
Views: 18870

Re: Retiring in 2000 withdrawing fixed 5% ran out of money in 2016

Also, some of you Debbie Downers act like your portfolio is your only source of income, when roughly 95% of Americans qualify for Social Security. Assuming you don't enter retirement with a mortgage, the Social Security benefit alone insures you won't need to eat the proverbial cat food. The estimated average Social Security retirement benefit in 2021 is only $1,543 a month. And cat food is getting expensive. Ok. But still, it is way too common on this board for people to talk about withdrawal rates with no consideration of how social security factors into taking care of most or all of the essential needs of the average retiree on THIS board. Not talking about folks with minimal assets/benefits. I think there is another element at play her...
by supersharpie
Sun Aug 01, 2021 9:37 am
Forum: Investing - Theory, News & General
Topic: Retiring in 2000 withdrawing fixed 5% ran out of money in 2016
Replies: 148
Views: 18870

Re: Retiring in 2000 withdrawing fixed 5% ran out of money in 2016

Also, some of you Debbie Downers act like your portfolio is your only source of income, when roughly 95% of Americans qualify for Social Security. Assuming you don't enter retirement with a mortgage, the Social Security benefit alone insures you won't need to eat the proverbial cat food. The estimated average Social Security retirement benefit in 2021 is only $1,543 a month. And cat food is getting expensive. Ok. But still, it is way too common on this board for people to talk about withdrawal rates with no consideration of how social security factors into taking care of most or all of the essential needs of the average retiree on THIS board. Not talking about folks with minimal assets/benefits. Exactly! BHs often act as though if they exh...
by supersharpie
Sun Aug 01, 2021 7:42 am
Forum: Investing - Theory, News & General
Topic: Retiring in 2000 withdrawing fixed 5% ran out of money in 2016
Replies: 148
Views: 18870

Re: Retiring in 2000 withdrawing fixed 5% ran out of money in 2016

You used a fixed withdrawal rate of 50,000, not 5%. A 5% rate would fair much better. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2000&firstMonth=1&endYear=2021&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=1000000&annualOperation=3&annualAdjustment=50000&inflationAdjusted=true&annualPercentage=5&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=SPY&allocation1_1=100&allocation...