Search found 226 matches

by Breezy
Thu Mar 14, 2024 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Multiple Solo 401(k)
Replies: 28
Views: 2108

Re: Multiple Solo 401(k)

Are you sure they don't allow after-tax contributions?
https://investor.vanguard.com/accounts- ... -solo-401k
by Breezy
Thu Feb 15, 2024 9:26 am
Forum: Personal Consumer Issues
Topic: Bank login security question - need a dummy SMS number
Replies: 52
Views: 5200

Re: Bank login security question - need a dummy SMS number

funyun wrote: Tue Feb 06, 2024 4:02 pm I use dual sims with T-mobile prepaid. I have the cheapest $10 per month plan for my line that does all my 2fa texting. It's worth the price to me.
Are you saying that you have a second phone that you use for all 2fa texting? An acquaintance of mine traveling in South America just experienced a worst-case financial hack due to iphone hack/theft, and I am trying to think how not to ever have that happen.
by Breezy
Thu Dec 07, 2023 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Buying Immediate Annuities
Replies: 21
Views: 2016

Re: Buying Immediate Annuities

Since interest rates on money market funds and CDs are decent right now, and she is probably familiar and comfortable with them you could also buy 1, 2, and 3 year CDs to cover each of those year's living expenses and spend them down over the next three years, leaving the rest in a money market account earning interest. Maybe buy one small annuity so she gets familiar with it and sees the reliability of monthly payments. Then, she could buy an annuity in three years for a larger amount.
by Breezy
Tue Dec 05, 2023 10:07 am
Forum: Personal Finance (Not Investing)
Topic: lump sum
Replies: 12
Views: 1545

Re: lump sum

Whose truck is it as the primary driver? I wouldn't feel right about using my partner's parents' $$ to pay off "my" vehicle. Putting it toward the house feels better regardless of interest rate, etc. unless it's mostly your spouse's truck or truly jointly shared in day-to-day life. You could then direct the amount you would have paid toward the mortgage to the truck. It sounds like it's a gift and not an inheritance, but I'd still lean toward joint debt and joint house projects & vacation.
by Breezy
Tue Dec 05, 2023 8:39 am
Forum: Personal Consumer Issues
Topic: Lock to secure luggage inside SUV
Replies: 27
Views: 3108

Re: Lock to secure luggage inside SUV

I second the advice to get a roof cargo box; either borrow one or buy one second-hand (or new!). I got one two years ago because of long road trips planned, and I found it to be and feel more secure than keeping things in the back of my Forester. Having said that, while driving, I kept electronics in my vehicle because I wasn't sure about potential water damage if it rained. That Thule cargo rack and my Kuat bike rack are my favorite purchases in the last five years, and I wish I had gotten them sooner!
by Breezy
Mon Oct 30, 2023 12:03 pm
Forum: Personal Investments
Topic: 400k placement (ACA)
Replies: 20
Views: 3027

Re: 400k placement (ACA)

Would I-Bonds work for part of it? Not sure if you're married, but if so, you could buy $20K now and $20K in January, and that would resolve 10% of the $400K.
by Breezy
Fri Jun 02, 2023 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Plan to buy a house and not renewing apt lease. Airbnb + Storage?
Replies: 10
Views: 1411

Re: Plan to buy a house and not renewing apt lease. Airbnb + Storage?

Check out furnishedfinder.com - it's a site for traveling nurses and remote-worker travelers, monthly rentals are the minimum. I'm staying in my first one and am very pleased with it.
by Breezy
Fri Jun 02, 2023 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: How to annuitize inheritance for 63 yr old son with no assets
Replies: 66
Views: 6807

Re: How to annuitize inheritance for 63 yr old son with no assets

Somewhat similar situation I'm facing with a sister who isn't a spendthrift but would 100% get sucked into some multi-level marketing scheme or outright scam. My mom is doing a trust with me as the trustee that sets my sister's inheritance ($100-150K, maybe?) to be distributed in percentages over 5 years or something like that, but I can distribute more for medical needs, etc., at my discretion. My sister has an unusual temperament, I won't say more than that except stubbornness and a lack of critical thinking & maybe she's undiagnosed but on the spectrum. Extremely hard to dialogue with or work out a plan with. She knows this 5-year distribution will be happening, whether she's OK with it or not, who knows, but my mom has told her. Her...
by Breezy
Sat Apr 08, 2023 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: I'm sorry to be needing tax help - 1099-R
Replies: 11
Views: 1648

Re: I'm sorry to be needing tax help - 1099-R

Thank you for your help, Bogleheads. Hopefully, this will be the last expensive lesson I will learn about trying to be too cleaver by half. Your expertise and willingness to offer it is much appreciated!
by Breezy
Tue Apr 04, 2023 10:17 am
Forum: Personal Finance (Not Investing)
Topic: I'm sorry to be needing tax help - 1099-R
Replies: 11
Views: 1648

Re: I'm sorry to be needing tax help - 1099-R

Thank you all for your help thus far. Here is more information that might be a factor: 1. My husband was 56 at the end of 2022. 2. Our 2022 adjusted income (line 11) was $276,598. 3. Our taxable income (line 15) was $250,697. 4. My husband's IRA balance now is about $205,000 (different account), I imagine it would have been lower at the end of 2022. 5. We did pay $10,000 of my daughter's nursing school tuition in 2022... 6. 1099-R box 7 is coded "1," which looks like "early distribution, no known exception" 7. The contribution was recorded as a 2022 contribution. 8. The new account still exists. Todthebod, when you list option one as convert the entire balance to a Roth IRA, do you mean the $7000 I withdrew, or the full ...
by Breezy
Mon Apr 03, 2023 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: I'm sorry to be needing tax help - 1099-R
Replies: 11
Views: 1648

I'm sorry to be needing tax help - 1099-R

Trying to do my own taxes for the first time in a long time with TurboTax and need some advice! I hope I didn't make a costly mistake. On 4/15/2022, I made a non-deductible IRA contribution in a newly opened account for my husband, intending to do a Roth conversion. The account was newly opened to keep the money separate from traditional IRA-funded pre-tax contributions over a long period of time, and then I read that it doesn't matter if the funds have never been co-mingled with pretax contributions, you still owe taxes on the pro-rated portion of ALL IRA funds when converting to a Roth. 1. I did the mentioned $7,000 non-deductible contribution on 4/15/2022 2. Three days later on 4/18/2022, I realized the above tax information and withdrew...
by Breezy
Tue Feb 07, 2023 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Need to spend $10,000 stat!
Replies: 147
Views: 14343

Re: Need to spend $10,000 stat!

It sounds like you will be able to get to your number without much problem, but one thing I would do is stock up on my favorite brands of shoes. I wear Hoka for walking shoes, and they run like $150-180, so two pair would be $300-360. If you're similar, for you and a spouse, that's in the $700 range, and I have always heard it's good to switch shoes anyway to make them last longer. If you have a hobby or sport you like, consider if there's a piece of equipment you could benefit from. When March 2020 hit, what I missed most about being out & about was my Pilates classes, so I bought a Pilates reformer for $3,000+ that will last me the rest of my life. I now do it at home for 15-20 minutes most days instead of an hour at the studio three ...
by Breezy
Mon Jan 30, 2023 8:35 am
Forum: Personal Consumer Issues
Topic: Can anyone recommend a quality desk [or a place to shop for one]?
Replies: 33
Views: 2518

Re: Can anyone recommend a quality desk [or a place to shop for one]?

I got a great desk from Ethan Allen quite a long time ago and it's as sturdy as ever. All wood and well built.
by Breezy
Thu Sep 29, 2022 3:29 pm
Forum: Personal Investments
Topic: Help Me Help My Mom -- $250K to Invest Conservatively
Replies: 15
Views: 2421

Re: Help Me Help My Mom -- $250K to Invest Conservatively

My mom is similar and only has CDs. She's 82 now and has always been this way. She would need a place she can physically go to, so if there's a Schwab or Fidelity office where she could have an account and use their money market with a higher rate, that would perhaps be an option for her (my mom). But I just leave well enough alone.
by Breezy
Fri Jun 17, 2022 8:28 am
Forum: Personal Investments
Topic: How would you invest a windfall right now?
Replies: 12
Views: 1092

Re: How would you invest a windfall right now?

I'd do I-bonds now and again in January, and dollar-cost average the rest over 12-18 months, setting it up for weekly purchases.
by Breezy
Tue Jun 14, 2022 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Should I buy a house / Homebase or avoid?
Replies: 24
Views: 3057

Re: Should I buy a house / Homebase or avoid?

I think a better thing to do would be to identify a nice apartment complex in Chicago and/or Seattle and make it your home base when you are in the U.S. So you always come back to the same place (if you want) and yet you have no home ownership responsibilities. Even if you get a $2000/month rental six months out of the year, that's pretty affordable.

More and more flexible living for digital nomads is coming online and will continue to. There are also places like Bungalow.com where you can rent a room in a house. You seem too mobile to really want a condo, and I think there are other ways of solving for the expense and stress of figuring out a living situation every time you're in the U.S. Just have home base rentals pre-identified.
by Breezy
Thu May 19, 2022 3:24 pm
Forum: Investing - Theory, News & General
Topic: People who backed up the truck on I bonds in 2001
Replies: 55
Views: 9237

Re: People who backed up the truck on I bonds in 2001

Another thing to remember is the 3% base rate wasn’t even the best deal at the time. There were a lot of products paying out 5.5-6%+. We weren’t in an environment when cash gave you nothing for a decade. Right, I am glad that I have a few thousand dollars worth of I-Bonds from back then, but for a long time, money market rates and CD rates were paying 5%. Also, while it had always been an option for the fixed rate to be 0%, that never actually happened until ... it looks like once in 2008 and then in 2010. So we had no idea how fortunate we were. I expected to use them for my kids' college, but at that point, I didn't want to sell them because of the interest rate, and also they wouldn't have been tax free anymore because of my income level.
by Breezy
Mon Feb 21, 2022 9:30 am
Forum: Investing - Theory, News & General
Topic: Bonds versus Annuities
Replies: 161
Views: 14346

Re: Bonds versus Annuities

Taylor Larimore wrote: Wed Feb 16, 2022 11:07 am Bogleheads:

When we reached our 80s my wife and I bought two single-premium immediate annuities (SPIAs). With a worry-free income for life, we then started giving the remainder of our portfolio to our heirs.

Our two SPIAs are the best investment we ever made. They provide the largest guaranteed return of any investment.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "I (probably prefer) an immediate annuity which starts paying you right away."
Hi, Taylor! Do you think buying them at that age (reaching your 80s) is the right time to buy them, or would you recommend earlier — and why? Thanks.
by Breezy
Fri Jan 28, 2022 10:47 am
Forum: Personal Investments
Topic: How do I get out of a Vanguard target date fund (Taxable account)?
Replies: 15
Views: 3303

Re: How do I get out of a Vanguard target date fund (Taxable account)?

As far as what to invest that money in, you could buy VTMFX (Tax-Managed Balanced), which gives you a tax-efficient 50-50 allocation. Then, if you want more in stocks, buy a proportional amount of VTSAX. If you want a lesser amount, buy I-bonds or VBTLX.
by Breezy
Tue Jan 11, 2022 7:30 pm
Forum: Personal Investments
Topic: Sell Gainers or Losers in tIRA for Living Expenses?
Replies: 21
Views: 1829

Re: Sell Gainers or Losers in tIRA for Living Expenses?

I funded my Roth so that I would not feel compelled to sell even with a stock market crash. If I were 100/0, I know I would be so tempted to sell. So it's roughly half in Wellington and half in VBIAX (balanced income). My traditional IRAs are Wellesley and Target Date Retirement Income, while my taxable is VTSAX and VTMFX and a few other assorted other things that found their way in over the years.
by Breezy
Thu Nov 18, 2021 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Planning to decrease income (dual income to single) considerations/recommendations
Replies: 7
Views: 1135

Re: Planning to decrease income (dual income to single) considerations/recommendations

You can definitely make this work. With that, I'd try looking at your plan and ask yourselves a ton of questions, including ones that seemingly conflict. First, why wait? Your wife is very employable and could go back to more hours pretty easily. Second, why not spend more now to make your lives easier? If there's ever a time to spend more on convenience, this is it. Childcare, house cleaning, meal delivery, etc. In fact, I'd advocate for doing BOTH - more household help and fewer hours. Take all offered vacation time, whether or not you go anywhere. You're in great shape, and there's no need to pay off the house. In fact, if inflation hits, the low interest rate you can lock in now at a 30-year mortgage will have you laughing at your low m...
by Breezy
Wed Oct 20, 2021 8:22 pm
Forum: Personal Investments
Topic: Help me Better Understand the Tax Implications of Target Date Funds (Taxable Account)
Replies: 8
Views: 1456

Re: Help me Better Understand the Tax Implications of Target Date Funds (Taxable Account)

If you later want to change your allocation, you can do it by buying something else or selling something else in taxable. I have 50-50 VTMFX and VTSAX in taxable, and I'll buy or sell more or less of each throughout the next decade to get my allocation where I want it. If I wanted a lower allocation, I would make that happen in tax-deferred but could also buy a target date in taxable. Point is, you aren't stuck with that allocation forever.
by Breezy
Sun Oct 17, 2021 9:11 am
Forum: Personal Investments
Topic: How to invest when I Missed the 529 Boat and Child will start College in 3 years!
Replies: 68
Views: 6898

Re: How to invest when I Missed the 529 Boat and Child will start College in 3 years!

Check out the scholarship page for the public universities in you state to see what scholarships they offer to in-state students. I was pleasantly surprised to see automatic awards based on SAT score and GPA - that's it, no income requirements. The higher both were, the more you got, but kids with 3.2 were eligible. Once we saw this, we had our son take one of those SAT prep courses for like $300-500 (can't recall) and he did well enough that about 70% of his in-state tuition is paid for. So, that's my advice - find out what's offered from each specific school and then aim for that. It might be that the lower-ranked schools offer the most scholarships. In my state, it's still a good school. Also, in my city, there are automatic transfer pro...
by Breezy
Thu Oct 14, 2021 9:05 am
Forum: Personal Investments
Topic: Withdraw rate for VWIAX
Replies: 41
Views: 2885

Re: Withdraw rate for VWIAX

I have been researching for quite a while where to put about 1.2 million $ specifically for retirement monthly withdrawals. This money will gradually mature from CDs and my plan is to slowly transfer this money during market downturns over the next several years. (All this money is former 401K $ all pretax). I’m absolutely sold on VWIAX. It’s track record is suburb and it seems to buffer economic downturns very well. So here are my questions: 1). Based on what I’ve read it’s best to reinvest and dividends and capital gains and just take withdrawals. True? 2). In my case from that 1.2 million $ I’d like to take $50,000 annually in $4167 monthly deposits to my checking account. I do not plan to adjust this amount for inflation. Money should ...
by Breezy
Mon Oct 04, 2021 8:49 pm
Forum: Personal Consumer Issues
Topic: Snow birding for a month near Tucson
Replies: 5
Views: 1252

Re: Snow birding for a month near Tucson

I live in Tucson, so feel free to PM me with questions or if you need help choosing one place over another. Many people like Oro Valley these days, and I think it's a good choice.
by Breezy
Tue Sep 28, 2021 9:15 am
Forum: Personal Investments
Topic: How much more money can we withdraw?
Replies: 14
Views: 2946

Re: How much more money can we withdraw?

Couldn't your spouse be collecting half of your higher SS? Like, $20K?
by Breezy
Sun Aug 08, 2021 9:45 am
Forum: Investing - Theory, News & General
Topic: A Different View of My Portfolio. Am I Crazy?
Replies: 26
Views: 4535

Re: A Different View of My Portfolio. Am I Crazy?

I do something similar, and it has allowed me to become very comfortable with my investments in recent months. A small windfall from the sale of a property enabled me to pause and consider how I would be most comfortable going forward. To a degree, it is more a mental framework than an actual change in the portfolio, but it did help decide how to invest the windfall. Like you, I came up with a conservative and aggressive portfolio, but I ASLO have a moderate portfolio - and the moderate portfolio is the biggest and what I intend to draw from when I start withdrawing. Basically, it breaks down like this: Conservative - 10 years' expenses (beyond future pension) in conservative funds. Money market, retirement income, life strategy conservativ...
by Breezy
Sat Jul 17, 2021 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Cash in bank to sleep well at night
Replies: 93
Views: 12299

Re: Cash in bank to sleep well at night

Maybe keep most of it in a retirement income fund. The balance might dip at times, but over time it should grow nicely compared to a savings account.
by Breezy
Sat Jul 17, 2021 9:20 am
Forum: Personal Finance (Not Investing)
Topic: How much can my family of four spend if I stop working?
Replies: 33
Views: 6347

Re: How much can my family of four spend if I stop working?

Could you use FMLA to help you get through the next year(s)? If it was me, I would try that a middle step before quitting because you keep your health benefits. You should be able to take 12 weeks per year - which is like 60 work days - so you could use one day of FMLA every week, with an extra week somewhere. And you should be able to do this every year. It's not paid, but it keeps the paycheck and health insurance coming in and might buy you some breathing room.

What other benefits are available if you keep working?
by Breezy
Thu Jul 15, 2021 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Flipping your car lease now??
Replies: 40
Views: 5467

Re: Flipping your car lease now??

My Subaru Forester lease was up in Dec 2020, and I bought the car after seeing I would come out even if selling it to Cavana, Carmax, etc. Now, seven months later, I could sell the car for about $4K more than I paid for it at the lease expiration.
by Breezy
Mon May 17, 2021 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: ADU on parents' property [Accessory Dwelling Unit]
Replies: 16
Views: 3651

Re: ADU on parents' property [Accessory Dwelling Unit]

Being a beneficiary means that you would receive it after they die. It doesn't give you an ownership stake in it while they're alive, and you can't take out a loan against a property you don't own.
by Breezy
Tue May 04, 2021 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Selling investment property - how much to fix up beforehand?
Replies: 5
Views: 758

Re: Selling investment property - how much to fix up beforehand?

Thanks, all. We're asking the realtor to run fresh comps and do minimal/obvious touchups and repairs, and then list. Like the first reply stated, the spouse's willingness to sell is the important factor & the one most likely to change.
by Breezy
Mon May 03, 2021 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Selling investment property - how much to fix up beforehand?
Replies: 5
Views: 758

Selling investment property - how much to fix up beforehand?

We're considering selling a 5-plex that we've owned for a long time. All properties in the city seem to be moving fast, including income property. The property is on the older side, always 100% rented. Roof does not need to be replaced. We're trying to determine if we should paint the exterior of the unit before listing and do small repairs we'd typically definitely do? Let's say it will be $5000-7000 to get the property looking a bit better. Our realtor has given us a fairly large range of possible selling prices, and we trust that he is giving us good numbers. We also get unsolicited low-ball cash offers pretty regularly. I'm wondering if in this market we should do anything at all? My sense is professional investors will give low offers ...
by Breezy
Sun Apr 25, 2021 11:07 pm
Forum: Personal Consumer Issues
Topic: Cities/towns to live in with low cost of living and no car?
Replies: 39
Views: 5450

Re: Cities/towns to live in with low cost of living and no car?

Your age might be a factor. Young & Tucson in the summer is probably do-able but not ideal. It's quite hot. Older, I just wouldn't. Flagstaff, AZ is more temperate if you're wanting Arizona.

Madison, WI is a great city. Certain suburbs of Milwaukee could work without a car.
by Breezy
Sat Apr 24, 2021 9:29 am
Forum: Personal Investments
Topic: Opened a Fidelity Account (23 y.o. needs advice)
Replies: 13
Views: 1152

Re: Opened a Fidelity Account (23 y.o. needs advice)

I would suggest that you save 15-20% of your income via index funds, set and forget, and then scratch the itch of buying individual stocks and ETFs with any remaining discretionary income. With Fidelity you can do fractional buying of stocks and ETFs, so you could buy $5 of AMZN, QQQ, TSLA, AAPL, etc. I suggest you also include a small bit of VTI -- which is the ETF version of the total stock market -- for comparison purposes, which you will be able to see right alongside your stocks/ETFs.
by Breezy
Fri Apr 23, 2021 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Need Cash for Divorce Payout
Replies: 109
Views: 10820

Re: Need Cash for Divorce Payout

I don't think you should get the money from your parents. You have the money, and it's your divorce. Just take a bit out of both, or take a loan against your 401K, or sell your vehicle, or ... whatever you need. You haven't mentioned your income situation or withholding/401K from paychecks, but do you have any other options? Like, if you have a truck worth 50K, well, there ya go.
by Breezy
Sun Apr 18, 2021 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Permission to retire?
Replies: 38
Views: 7296

Re: Permission to retire?

Start tracking your expenses and trying to figure out your retirement spending. That's key.
by Breezy
Sun Apr 18, 2021 8:44 pm
Forum: Personal Investments
Topic: What does "won the game stop playing" mean in practice?
Replies: 250
Views: 39069

Re: What does "won the game stop playing" mean in practice?

What I have done, realizing that we've *probably* met our savings needs in our early 50s because of an ever-growing pension in addition to our investments, is to divide our portfolio into time horizons. It's definitely compartmentalizing, but it allows me to sleep well at night. Basically, it looks like this: 10 years of expenses (+pension if we retired today) = conservative investments, defined at 0-30% stock. In practice, this means money market and Retirement Income VTINX. Fully funded. 15 years expenses (+pension if we retired today) in moderate investments, defined as balanced funds 50-50 or 60-40. Fully funded. Beyond 25 years, aggressive or whatever I want, defined as VTSAX, individual stocks, or LifeStrategy Growth. We aren't using ...
by Breezy
Tue Mar 30, 2021 7:06 pm
Forum: Investing - Theory, News & General
Topic: Maintaining AA during retirement
Replies: 6
Views: 1195

Re: Maintaining AA during retirement

In addition to VTSAX in my taxable account, I also hold the Tax-Managed Balanced Fund (VTMFX), which is about 50-50 and managed for tax efficiency. This allows me to have some bonds in taxable, and it also takes into account my behavioral issues - if I'm greedy, I can buy VTSAX, and if I'm fearful, I can buy VTMFX. If I want to change my asset allocation, I can do so by switching future contributions from one to the other, or part in each. Any rebalancing would still take place in tax-deferred accounts.
by Breezy
Mon Mar 22, 2021 6:31 pm
Forum: Personal Investments
Topic: Bonds in Taxable vs. Roth
Replies: 5
Views: 790

Re: Bonds in Taxable vs. Roth

How about Tax Managed Balanced Fund, VTMFX?
by Breezy
Wed Mar 17, 2021 2:05 pm
Forum: Personal Investments
Topic: We sold our business. Help us invest the windfall
Replies: 63
Views: 10191

Re: We sold our business. Help us invest the windfall

I understand your thinking regarding funding college, but I also urge you to reconsider and pay full freight at a state school, and then maybe even full freight at the best grad/med school they get into if that's in the cards. While my kids were growing up, our thinking was we'd pay for the cost of 4 years tuition at a state school plus one year (first year) in the dorms, then they'd have to figure out how to pay their housing. And they were on their own for school beyond undergrad. In real life, we helped/are helping quite a bit more than planned, but it feels like the right thing to do. Both got scholarships paying 70-80% of their tuition, so that helped. Then one is doing very valuable unpaid internships, so we're helping with his living...
by Breezy
Tue Mar 16, 2021 3:34 pm
Forum: Personal Investments
Topic: This is a dumb idea....right?
Replies: 21
Views: 3578

Re: This is a dumb idea....right?

You definitely shouldn't do it.

But what's your age/health & what do you hold in taxable right now? Maybe people can help you think through things more if you list what you have & how to get it closer to where you want it.
by Breezy
Mon Mar 15, 2021 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Emergency fund: money market to I Bonds
Replies: 18
Views: 2443

Re: Emergency fund: money market to I Bonds

I'll just point out an issue I found, kind of a good problem to have, I suppose. Long ago, I bought I bonds as emergency funds, and now they're the last thing I want to sell because the interest rate is so much higher than anything I could get now. 4% something. I no longer consider it an emergency fund and instead would use first money market funds and then I would take money from regular investments like VTSAX in taxable.
by Breezy
Sun Mar 14, 2021 9:51 am
Forum: Personal Investments
Topic: Help with Asset Allocation
Replies: 21
Views: 1744

Re: Help with Asset Allocation

How much cash or money market savings do you have? As far as the need to perhaps replace some of your husband's income, maybe consider the S & P 500 along with plain old savings.
by Breezy
Tue Mar 09, 2021 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Sell or keep rental property? What to do with proceeds?
Replies: 13
Views: 1129

Re: Sell or keep rental property? What to do with proceeds?

I would probably refinance and keep it. This is pure OPM building wealth for you.

In our case, we refinanced a four plex to a 15 year mortgage which was due to be paid off when our oldest went to college. We still had positive cash flow all along, which I suppose did make a difference in my view of things. Well, the income from the place has helped us cash flow college for two and will now help a little with postgrad education... and then the property will have served its purpose and we will sell.
by Breezy
Wed Mar 03, 2021 1:59 pm
Forum: Investing - Theory, News & General
Topic: How crazy is it to hold 100% equities until retirement? (ERN)
Replies: 540
Views: 32575

Re: How crazy is it to hold 100% equities until retirement? (ERN)

As a more conservative investor, this chart is really helpful. I note the lower volatility of the Wellington Fund, which would help prevent selling at the wrong time based on emotion. Warren Buffett's mentor, Benjamin Graham, writing advice for "defensive" investors, wrote that We have suggested as a fundamental guiding rule that the investor should never have less than 25% or more than 75% of his funds in common stocks... Although it raises as many questions as answers, perhaps the longest-term real-world test of 100% equities versus a balanced allocation can be seen in a comparison of the actual performance of two of the oldest mutual funds: Massachusetts Investors' Trust (MITTX) and Vanguard Wellington Fund (VWELX). It is what ...
by Breezy
Wed Mar 03, 2021 12:11 pm
Forum: Personal Investments
Topic: My Mother Needs Help
Replies: 46
Views: 4320

Re: My Mother Needs Help

I second/third the suggestion about working with her to see what social security she's eligible for at various ages, including if she might be eligible from a former spouse if there was one. From there, you can work with her to determine her savings needs. Yes, she's "behind" compared to lots of people on this forum, but her expenses are really low, which is great. Knowing these numbers can also be an incentive for her to save more of the excess paychecks, too. Like, If you can show her that she's eligible for $800/month at age 65, it's really clear for her to understand she needs to save $X per month to spend once retired. She definitely should work as long as possible, and hopefully her job will allow her to go PT at some point,...
by Breezy
Tue Mar 02, 2021 6:06 pm
Forum: Personal Investments
Topic: Change of plans for Social Security
Replies: 19
Views: 3461

Re: Change of plans for Social Security

Were you married for ten years? If so, and if your spouse is eligible for higher social security than you, you can claim on his as long as you never remarried. You could get 50% of his (doesn't impact his at all).

In case this applies to you:
https://www.aarp.org/content/dam/aarp/m ... d-AARP.pdf
by Breezy
Thu Feb 25, 2021 5:29 pm
Forum: Personal Investments
Topic: Mom Received a Large Life Insurance Payout - Looking For Feedback on Potential Portfolio
Replies: 8
Views: 1206

Re: Mom Received a Large Life Insurance Payout - Looking For Feedback on Potential Portfolio

Since she has seen people outlive their money, she might be sensitive to the swings of the stock market, so while on the one hand it makes sense to have an aggressive allocation in her Roth, on the other, large swings down might cause her or you to sell. There's no need for her to be too aggressive with her investments at all. She could keep five years of expenses in a money market account and the rest in Vanguard LifeStrategy Conservative Growth Fund (VSCGX). Or, because in her case, income from dividends could actually bump her into a higher bracket, you might want to take a look at Vanguard Tax-Managed Balanced Fund (VTMFX) in her taxable. I vote for an all-in-one fund, especially since you are managing it for her. The desire to tinker c...
by Breezy
Sun Feb 21, 2021 8:43 am
Forum: Personal Investments
Topic: 2020 Backdoor Roth IRA
Replies: 9
Views: 998

Re: 2020 Backdoor Roth IRA

Excellent - thanks!