Search found 1941 matches

by kramer
Tue Feb 23, 2021 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Any expats retired in europe? How much needed to retire?
Replies: 135
Views: 22254

Re: Any expats retired in europe? How much needed to retire?

One advice is to not underestimate the years long study required to get to an advanced (but not nearly fluent) level at any particular foreign language. To get to fluent from advanced is more years.
by kramer
Mon Feb 22, 2021 11:56 am
Forum: Investing - Theory, News & General
Topic: Life expectancy decline and Social Security.
Replies: 17
Views: 2326

Re: Life expectancy decline and Social Security.

LongRoad wrote: Mon Feb 22, 2021 11:47 am
kramer wrote: Mon Feb 22, 2021 11:26 am Each year, future Social Security amounts for each cohort are based on the earnings in the year in which that cohort turned 60 years old.

So the big effect on future Social Security is for the cohort that turned 60 in 2020, since total Social Security wages went down significantly in 2020. Their lifetime social security earnings will be forever affected, absent new legislation from Congress.
This is true, but the effect may not be as bad as originally expected. As of January, the CBO projects the AWI to decrease 0.5% from 2019 to 2020, versus an earlier projected decrease of as large as 3.8%.

https://www.cbo.gov/publication/56973
Thanks for the link! That is pretty good news then.
by kramer
Mon Feb 22, 2021 11:26 am
Forum: Investing - Theory, News & General
Topic: Life expectancy decline and Social Security.
Replies: 17
Views: 2326

Re: Life expectancy decline and Social Security.

Each year, future Social Security amounts for each cohort are based on the earnings in the year in which that cohort turned 60 years old.

So the big effect on future Social Security is for the cohort that turned 60 in 2020, since total Social Security wages went down significantly in 2020. Their lifetime social security earnings will be forever affected, absent new legislation from Congress.
by kramer
Sun Feb 21, 2021 6:52 pm
Forum: Personal Consumer Issues
Topic: Anyone planning on traveling after vaccine?
Replies: 32
Views: 3028

Re: Anyone planning on traveling after vaccine?

I have been traveling this entire time. No issues. Same here since September, currently in Colombia. I do hope to get back to the US in mid-April and get vaccinated (and get the all-important vaccine paperwork). How are you planning for the tests to go back to the US? The US has (in my opinion) a reasonable requirement because it can be a PCR test or an antigen test (latter takes a finger prick for blood and gives results in 15 minutes). Many popular tourist destinations now offer antigen tests in the airport for departing visitors. The other good thing about an antigen test is the travelers tend to get these tests much closer to their departure time. Arranging a PCR test and getting the results back in time is more difficult and expensive.
by kramer
Sat Feb 20, 2021 11:11 am
Forum: Personal Investments
Topic: Tubo Tax and foreign tax credit carry forward
Replies: 24
Views: 1674

Re: Tubo Tax and foreign tax credit carry forward

Yes, it's a common situation and it sounds like you did not make a mistake. Once you exceed the (no hassle) tax credit limits on foreign tax paid ($300 or $600, single or married), then your percentage of foreign tax credit is topped at the total rate you paid on your non-foreign income. An example is in order. Normally, foreign tax paid on foreign funds is around 7%. If you only paid 2% federal tax on all of your non-foreign income, then you would only get 2/7 or about 28% of your foreign tax credit. Also, you cannot just decided to take only the "no hassle" limits of $300/$600. Once you are over those limits, you have to use form 1116. And for many taxpayers with lower federal tax rates, they will lose some credit for going over...
by kramer
Mon Feb 15, 2021 5:46 pm
Forum: Personal Consumer Issues
Topic: The Wall Street Journal (WSJ) Digital Subscription $4.00/month
Replies: 42
Views: 5801

Re: The Wall Street Journal (WSJ) Digital Subscription $4.00/month

Thanks for this pointer, I did subscribe to the WSJ digital for $52 for 1 year and then it goes to $9.99 per month after that (which seems reasonable compared to the rack rate). I had also decided about a month ago to end my NY Times subscription, but when I finally contacted them this weekend they offered (without me prompting) to lower my rate to $4 per 4 weeks for one year, so I took that instead of cancelling. In the future, I will also consider The Economist, I just haven't gotten around to it yet.
by kramer
Sun Feb 14, 2021 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit: Can I elect to limit to $600 MFJ to avoid Form 1116??
Replies: 24
Views: 5199

Re: Foreign Tax Credit: Can I elect to limit to $600 MFJ to avoid Form 1116??

There was a thread about this a long time ago on Bogleheads. No, you cannot reduce your foreign tax paid and just take the $600 credit. Basically, if I recall the way it was presented, the $600 no-hassle-credit is a gift, but you are not eligible for this gift if you go over. And, for many people, not being able to do this increases their tax liability.
by kramer
Sat Feb 06, 2021 9:11 am
Forum: Personal Investments
Topic: Moving to 0% income state tax.
Replies: 44
Views: 4453

Re: Moving to 0% income state tax.

I don't know how it works if your passport has a visa in it and and the passport expires while you are traveling. I am sure that it happens but it would likely be a headache to replace both the passport and visa while you are out of the country. It would be probably easiest to renew your passport before you leave if it will expire while you are traveling. Many countries also require that the passport to not expire for at least for six months after your planned departure date. Also check when things like when your credit cards and ATM cards expire. You may want to replace those before you leave. When you renew a passport, you can continue to carry the old passport with the visa and that is accepted. Also, it is possible to renew your passpo...
by kramer
Sat Feb 06, 2021 8:41 am
Forum: Personal Consumer Issues
Topic: COVID habits you will keep...?
Replies: 95
Views: 5638

Re: COVID habits you will keep...?

Nothing much really.

I have always sort of not liked handshakes, thinking the Japanese had a much better approach. But if someone wants to shake I won't turn them down, either.

I have been flying a lot recently, and I might continue to wear masks for at least part of a flight, undecided on that.
by kramer
Sun Jan 17, 2021 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Splitting time between 2 states (Florida)
Replies: 15
Views: 2120

Re: Splitting time between 2 states (Florida)

mgensler wrote: Sat Jan 16, 2021 7:17 pm Perhaps find a place to live that doesn't require a car for everyday errands. We have a 2nd home in FL but only keep bikes in the garage. We enjoy the exercise, it's flat, and plenty warm to cycle. If you need a car, there are plenty of rental cars that are fairly cheap in FL with all of the tourists. Let someone else worry about keeping up the battery and maintenance while you are away.
I was just in Miami for a week and walked and used Uber to get around everywhere there. So bikes plus Uber is another option. Also, an electric bike extends your range a lot.
by kramer
Sat Jan 16, 2021 6:45 pm
Forum: Personal Consumer Issues
Topic: Retirement: Anyone here from\live in Anthem, AZ?
Replies: 15
Views: 2471

Re: Retirement: Anyone here from\live in Anthem, AZ?

Although I know it's a big improvement on the cold of the Midwest, I find that area too cold in the winter, 5 months with average lows in the 40s. Best wishes on your retirement!
by kramer
Tue Jan 05, 2021 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: How do you pay your taxes? Check or EFTPS?
Replies: 88
Views: 8183

Re: How do you pay your taxes? Check or EFTPS?

I just pay with a debit card on Direct Pay for IRS and I do it just once per year (total fixed fee of around $3 regardless of amount). I don't live in the US so I can't rely on the mail. I have found this way the most hassle free for me. I lost my account info on EFTPS way back when, plus I don't even worry about prepaying some estimated taxes now with zero interest rates, my goal is just to reduce hassle.
by kramer
Tue Jan 05, 2021 12:44 pm
Forum: Investing - Theory, News & General
Topic: How to: international currencies exposure
Replies: 18
Views: 1649

Re: How to: international currencies exposure

I spend most of my money abroad and I share the concerns about currency diversification. Plus, all of my future Social Security payments will be in dollars (I am in my 50's). But I decided there are no unhedged international bond funds worth the expense ratio. I do have 60% of equities in international. My expense ratio for US bonds is essentially zero as I mostly buy brokered CD's, TIPs/Treasuries and I-Bonds. That is hard to beat. Also, there is the free lunch for retail investors on CD's, they are guaranteed yet pay quite a bit better than Treasury bonds, and I have no short term liquidity needs for most of my bond portfolio.
by kramer
Mon Jan 04, 2021 8:39 pm
Forum: Investing - Theory, News & General
Topic: International stocks will outperform US stocks in 2021
Replies: 174
Views: 24753

Re: International stocks will outperform US stocks in 2021

I am about 60% international and have predicted this year after year :D :oops:

Fortunately, my asset allocation fits into my long term investment plan and makes sense in my situation.
by kramer
Wed Dec 23, 2020 7:25 pm
Forum: Investing - Theory, News & General
Topic: 2021 I Bonds: what's your plan?
Replies: 468
Views: 97632

Re: 2021 I Bonds: what's your plan?

Why even bother with i-Bonds at 0% fixed rate? Serious question, not trolling here. Personally, I'm buying EE-Bonds instead of i-Bonds now. And yes, I have to hold it for 20 years exactly. I know. If I am reading the Treasury Direct page correctly, there is a separate $10,000 purchase limit on I-bonds and EE-bonds? So a single person could purchase $10,000 of each of these each year? https://www.treasurydirect.gov/indiv/research/articles/res_invest_articles_purchaselimits_0406.htm Savings Bonds Different purchase limits apply for electronic savings bonds and paper savings bonds. Electronic (TreasuryDirect) Through your TreasuryDirect account - which is established using your name and social security number, bank information, driver’s licen...
by kramer
Tue Dec 15, 2020 12:34 am
Forum: Personal Finance (Not Investing)
Topic: What is happening to landlords who can't evict their tenant?
Replies: 20
Views: 4065

Re: What is happening to landlords who can't evict their tenant?

If I were a tenant this year, I would have sent a note to my landlord to reassure him that I will not be defaulting on my rent obligation.
by kramer
Sun Dec 06, 2020 8:10 pm
Forum: Personal Consumer Issues
Topic: Tanzania Safari
Replies: 33
Views: 2855

Re: Tanzania Safari

But Tanzania is not doing this at all based on the research I have done. They have no entry restrictions other than questions about your health. People are actively visiting and having enjoyable vacations. Tanzania knows that far more of their citizens will die from poverty and starvation than from covid if they shut down. They are fully open for business and have no plans on changing that. This is indeed the case and I doubt they will vaccinate, either. In fact, if you wear a mask there you are looked at as really weird and it immediately identifies you as a foreigner ... even the people at the few Covid testing stations (which only exist for people who need to fulfill an international requirement to leave) mostly don't wear masks. With a...
by kramer
Sat Dec 05, 2020 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Living in the US and another country (retirement planning)
Replies: 97
Views: 7983

Re: Living in the US and another country (retirement planning)

Three different times in Mexico (in 2 different cities) I have rented a one month AirBnb (28 days or more) in order to get the big monthly discount and I had good luck with it each time. In fact, in my last AirBnb at the 3 week mark I extended from 5 weeks to 7 weeks (you can do all this online and you get the same discount as long as the owner approves the new reservation). I am considering a longer term commitment to a particular city, and so next time I might search for a longer term (4 months+) furnished rental which seem to be available in that market, which gets plenty of tourists and part-time residents. I joined the various housing forums (Facebook groups) for that city, some are in English and others are in Spanish, and I also spea...
by kramer
Fri Dec 04, 2020 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Living in the US and another country (retirement planning)
Replies: 97
Views: 7983

Re: Living in the US and another country (retirement planning)

I have a friend who lives in Toronto, Canada (so not the USA) for 5 months each year and in Asia for 7 months. But he manages to rent out his house (one half of a duplex), which is in a desirable area in Toronto, for about 6 months each year (a 6 month lease to a single person/family). He manages to do this by renting it out under market value, furnished, and with all utilities in his name, so it is normally people who are thinking of moving there or in some kind of temporary circumstance. I think all the utilities are included in the rent except for the electric. It is a duplex and his neighbors help out with any problems. So that is one way to monetize a residence in your absence. He has one small room in the duplex where he puts all his ...
by kramer
Fri Nov 20, 2020 10:51 pm
Forum: Investing - Theory, News & General
Topic: How to control spending if you only live off of dividends but dividends are uneven?
Replies: 43
Views: 3476

Re: How to control spending if you only live off of dividends but dividends are uneven?

Make sure to take full advantage of the 0% tax bracket for qualified dividends and capital gains each year. That means if you are single, you want your income to be at least around $50,000 each year. So if your income is less than that, you would want to do some tax gain harvesting and raise the basis on your holdings, as their is no tax cost to doing so up to around the top of the 12% bracket plus standard deduction. If you want to retain those shares, you can just immediately buy them back (as long as you sold them for a gain and not a loss).
by kramer
Fri Nov 20, 2020 9:52 pm
Forum: Personal Consumer Issues
Topic: Choosing a Kindle Oasis over a Regular Paperwhite E-reader?
Replies: 20
Views: 1833

Re: Choosing a Kindle Oasis over a Regular Paperwhite E-reader?

FYI, the Paperwhite is "due" for an upgrade (last upgraded in 2018, and the other two Kindles have both been upgraded since then). There are rumors that it would have been out already except for Covid-related supply chain issues. On the other hand, technology in this area advances pretty slowly, so there may not be big improvements. Apparently, many are hoping for the warm lighting and USB-C.
by kramer
Mon Nov 16, 2020 8:54 pm
Forum: Personal Investments
Topic: Portfolio Review: Early Retiree (less than $1 Million)
Replies: 50
Views: 6840

Re: Portfolio Review: Early Retiree (less than $1 Million)

Just a few comments: It doesn't make sense to maintain the mortgage after retiring. And I would redo the budget and plan without that. I don't know much about HealthShare plans, but $300 per month for age 57 to 65 doesn't even sound in the ballpark for real total healthcare costs (and don't forget dental and eye care). Sorry, but it is just not realistic. There are many people that would budget that much just for their deductibles, let alone their premiums. There is a decent probability of living 35 to 40 years longer. The budget just feels tight when she still has choices. Son handles car replacement on the cheap? In her case, I would definitely wait until age 70 to get Social Security and plan the drawdown accordingly. I don't think you m...
by kramer
Mon Nov 16, 2020 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate earned capital gains using estimates
Replies: 6
Views: 563

Re: How to calculate earned capital gains using estimates

PaunchyPirate wrote: Mon Nov 16, 2020 11:22 am
saves nine wrote: Mon Nov 16, 2020 10:59 am
On Monday, estimated year end Capital Gains will be announced for Vanguard funds.
Where on the site would one find these?
If you go to this webpage you will find a link to "Upcoming Capital Gains Information". The link does not currently work as of 12:22pm Eastern Time on 11/16. But presumably when they release the figures, I would think it will be from that linked page.

https://investor.vanguard.com/taxes/
I am seeing the PDF document of 2020 estimated capital gains on this page:

https://advisors.vanguard.com/insights/ ... sestimates

maybe there will be a better link later. The actual direct link is:

https://advisors.vanguard.com/iwe/pdf/t ... PYEEST.pdf
by kramer
Tue Nov 10, 2020 7:51 pm
Forum: Personal Investments
Topic: Foreign Tax Credit Turbotax 2020
Replies: 18
Views: 2016

Re: Foreign Tax Credit Turbotax 2020

I use the high tier of TurboTax (Premier) download. I am single but the principle is the same, except my limit is $300. Since I hold a lot of foreign mutual funds in taxable accounts, my foreign taxes paid far exceed $300. I have foreign tax carryovers going back the full 10 years (which is the maximum). Each year I can use only a portion of my current foreign tax credit because my income tax rate is not quite high enough. I can tell you that TurboTax Premier handles all of this almost automatically. The one manual thing you have to do is add up the dividends you receive from foreign ETFs and mutual funds, but that just takes a minute or two. Years ago (maybe 5 years?) I was still using Turbo Tax Basic, and it was a pain to do, there was al...
by kramer
Sun Nov 08, 2020 5:05 pm
Forum: Personal Investments
Topic: Early Retirement - ACA Subsidy vs Roth Conversions
Replies: 27
Views: 5119

Re: Early Retirement - ACA Subsidy vs Roth Conversions

It seems that once your IRA becomes 100% bonds, the pressure to Roth convert should go down. If I recall, I-ORP was not considering this, even though it may be a major factor. I could be mistaken, though. To get around the propensity to put money towards the account with the highest returns, in i-orp you make the allocations the same in each type of account, so there's no special draw towards putting money in any one account. I assume RPM doesn't have that issue. Thanks for the clarification. This is probably why I-ORP didn't seem as useful for my situation. My IRA is a smaller percentage of total assets than the OP and it is 100% bond. So when I am doing Roth conversions and keeping my overall asset allocation the same, I am essentially m...
by kramer
Sun Nov 08, 2020 3:24 pm
Forum: Personal Investments
Topic: Early Retirement - ACA Subsidy vs Roth Conversions
Replies: 27
Views: 5119

Re: Early Retirement - ACA Subsidy vs Roth Conversions

It seems that once your IRA becomes 100% bonds, the pressure to Roth convert should go down. If I recall, I-ORP was not considering this, even though it may be a major factor. I could be mistaken, though.
by kramer
Fri Nov 06, 2020 8:29 pm
Forum: Personal Consumer Issues
Topic: how good is your 5G coverage?
Replies: 70
Views: 5000

Re: how good is your 5G coverage?

On a regular phone screen, I don't really see much use for anything over a solid 20 Mbits/second. It's like a technology in search of a practical use.
by kramer
Thu Nov 05, 2020 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: If retired, what is the quotient of the market value of your home and your net worth?
Replies: 93
Views: 7371

Re: If retired, what is the quotient of the market value of your home and your net worth?

0.00

I have been retired over 13 years and have never owned a home. Currently staying in a wonderful AirBnb in Mexico. The neighborhood where I am staying now is almost the first place I have been where I would seriously consider buying in future years, so maybe the zero part will change.
by kramer
Tue Nov 03, 2020 2:20 pm
Forum: Personal Consumer Issues
Topic: What's App vs Regular SmartPhone Number
Replies: 13
Views: 1130

Re: What's App vs Regular SmartPhone Number

Messaging apps are how most of the world communicates and WhatsApp is the world's most used messaging app. It also supports voice calls and video calls (over data). Messaging through such an app is far superior to texting as you can tell when your message has been successfully sent, been successfully received, and when it has been read and it handles images, video, and links well. And it is supposedly end-to-end encrypted. And there is no issue with borders or international numbers or the rules or protocols of local telcos beyond data usage. You can also create groups and things like that. Finally, using it in basic fashion (one person messaging one other person) is super easy. In many parts of the world, your WhatsApp number is your number...
by kramer
Wed Oct 28, 2020 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: Moving between states to save on taxes and unload house
Replies: 30
Views: 3466

Re: Moving between states to save on taxes and unload house

Some info about getting taxed on Stock options years after leaving the State (one poster paid a $30,000 bill to Ohio many years after moving away):

viewtopic.php?t=94028
by kramer
Wed Oct 28, 2020 11:38 pm
Forum: Investing - Theory, News & General
Topic: New E/R for IJS
Replies: 11
Views: 1843

Re: New E/R for IJS

schildkrote wrote: Sun Oct 25, 2020 10:40 pm FYI to all interested. E/R for IJS appears to have been reduced from 0.25% to 0.18%. Great success. :sharebeer
Thanks! I really was thinking it might never go down. All my shares are something like 15 to 20 years old and I am locked in due to large capital gains. I have not bought any IJS since, favoring Vanguard's VBR (and it's predecessor mutual fund) instead.

Also, IJS had a stock split this month.
by kramer
Sat Oct 24, 2020 1:59 pm
Forum: Personal Consumer Issues
Topic: Ideal City to live in?
Replies: 160
Views: 15556

Re: Ideal City to live in?

btenny wrote: Sat Oct 24, 2020 12:15 pm Reno and Carson city are not cold nor dry. Chicago and Detroit are cold. Yes they get a little snow each winter but the low temperatures are 23 at worst in January and those days have daily highs of 45. So pretty warm IMO.
This thread is really getting hilarious but I guess we all have our personal biases. Reno gets an average annual snowfall of 22 inches, which I would not consider near "no snow". I would rather not live somewhere where the overnight low got down to 45, nor would I consider those days pretty warm, let alone 23 for the daily low and 45 for the daily high :D 8-)
by kramer
Sun Oct 18, 2020 1:17 pm
Forum: Investing - Theory, News & General
Topic: Keep vs tendering maturing savings bonds
Replies: 10
Views: 791

Re: Keep vs tendering maturing savings bonds

My plan is to spread out the cashing of my I-Bonds when they mature in about 10 years so that I am not pushed into a higher tax bracket in any given year. If that means holding on to them after they mature then so be it. So yes, I believe there can be a good reason to hold them past maturity. As Gil mentioned, this is incorrect, tax is due when they mature or when you cash them in, whichever comes first. Another way to achieve your goal is to cash some in early. This is also what I plan to do. But the rates are so good (3% real or more), that I will have to carefully weigh that against the increased tax. If I recall, my best strategy was to cash them in over a period of 3 tax years ... cashing them in at an average of about 6 months early ...
by kramer
Fri Oct 16, 2020 1:35 pm
Forum: Personal Investments
Topic: HSA - Is this Considered part of your retirement
Replies: 45
Views: 4292

Re: HSA - Is this Considered part of your retirement

I plan to retire overseas so the HSA will not be as useful unless there’s a way around foreign transaction fees. If you document your healthcare spending during years leading up to retirement, you could just make a massive cash-out of that total amount prior to moving away. It would be 100% tax-free. Then, you could cash out the remainder (if any) as your tax planning allows by transferring it to whichever accounts you maintain. I don't see foreign transaction fees being an issue here. Are you thinking of using the HSA ATM card? I don't know many people that actually use that card; in fact, I destroyed mine upon receipt. Not only that, but you can use a receipt for medical expenses abroad to justify tax-free HSA withdrawal. For me, at leas...
by kramer
Wed Oct 07, 2020 11:12 am
Forum: Investing - Theory, News & General
Topic: Dying Broke (On Purpose) Article
Replies: 260
Views: 36801

Re: Dying Broke (On Purpose) Article

I am hoping Deferred Annuities become better value over time as they (hopefully) become more popular. They allow a bigger capture of mortality credits than an SPIA and make more sense in the "spend it down" scenario.
by kramer
Mon Oct 05, 2020 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: US Buyer considering a foreign 2nd home
Replies: 18
Views: 2309

Re: US Buyer considering a foreign 2nd home

Buying a property (why?) should be the last thing on you list. This is how I would do it: 1. Rent (long term in a central place or shorter term and move around) for the next years, maybe forever. 2. Live there for a while as a tourist, get an idea about the country, the community, learn the language (it takes few months for an indo-european language at a reasonable level). 3. I wouldn't stop there, I would keep travelling to the other places I consider. Sinking a large amount of money blindly in a country and a place I know nothing or very little seems reckless to me. Exactly this. I would only add that before wasting too much time on a destination, understand the tax implications and immigration visas for living there. And if owning will ...
by kramer
Tue Sep 29, 2020 6:13 pm
Forum: Personal Consumer Issues
Topic: Will a smart phone bought in Europe work in US?
Replies: 24
Views: 1339

Re: Will a smart phone bought in Europe work in US?

I buy all my phones for use worldwide ... I wouldn't even consider a phone that didn't work at least almost everywhere. I also use a Google Fi sim that works worldwide. Since she is AT&T in the US, then CDMA is not an issue (like it might be, I think, for Verizon and Sprint). The only real difference among GSM phones bought all over the world now is that they all only have a subset of LTE (4g) frequencies, no phone has them all. But just about all of them have the most common ones. This will probably also be a bit of an issue as 5g comes online. More expensive phones support more frequencies making regionality less of an issue for them. If one is really checking this in detail, you can go to www.gsmarena.com and check the "variants...
by kramer
Sat Sep 26, 2020 4:33 pm
Forum: Investing - Theory, News & General
Topic: Were you nervous when you retired?
Replies: 147
Views: 21908

Re: Were you nervous when you retired?

I retired quite early (age 41) and had a good job. So I was very nervous about giving my notice, even though I had done a lot of planning and was ready. Once I got that event over with, everything else was downhill. But getting up the nerve to actually pull the trigger was one of the hardest things for me in my life.
by kramer
Thu Sep 24, 2020 12:41 pm
Forum: Investing - Theory, News & General
Topic: US Investor investing mostly in international
Replies: 45
Views: 4667

Re: US Investor investing mostly in international

I am about 40/60 US/foreign and have been in that range since I retired in 2007. I think before I retired I might have been closer to 50/50. My reasoning is that the natural holding is around 50/50. However, I live outside the US, and all of my bonds are denominated in US dollars (around 40% of my portfolio), plus all of my future Social Security payments will be denominated in US dollars, so I bias a bit toward foreign for better international currency and general country exposure. I don't do anything based on political considerations or my opinion of the future of the US or any other country. Over 90% of my US holdings are US small value. My foreign holdings are roughly 30% Developed Large, 40% developed small, 20% EM large, 10% EM small....
by kramer
Wed Sep 23, 2020 2:29 pm
Forum: Personal Consumer Issues
Topic: Why buy medical insurance ?
Replies: 113
Views: 8835

Re: Why buy medical insurance ?

I don't really see any rational way a person with means can go bare in the US ... it's not just the uniquely high cost of US health care, but the unnegotiated rates paid by the uninsured. But you can go bare in other countries, where cash for services is much more common (and often even the norm). But you have to live there and you have to be willing and ready to spend when the time comes (for even some people with sufficient means their portfolio is not structured in a way for this to be possible). Buy short term or travel insurance for visits to the US. No need to go bare...e.g. in Mexico an expat the OP's age could buy into the national health plan (most treat it as catastrophic insurance) for under $500 per year...looks like more tradi...
by kramer
Mon Sep 21, 2020 11:31 pm
Forum: Personal Consumer Issues
Topic: Why buy medical insurance ?
Replies: 113
Views: 8835

Re: Why buy medical insurance ?

I don't really see any rational way a person with means can go bare in the US ... it's not just the uniquely high cost of US health care, but the unnegotiated rates paid by the uninsured.

But you can go bare in other countries, where cash for services is much more common (and often even the norm). But you have to live there and you have to be willing and ready to spend when the time comes (for even some people with sufficient means their portfolio is not structured in a way for this to be possible). Buy short term or travel insurance for visits to the US.
by kramer
Sat Sep 19, 2020 11:51 pm
Forum: Personal Consumer Issues
Topic: Retiring to Canada
Replies: 54
Views: 5631

Re: Retiring to Canada

Canada is an interesting country in a lot of ways and I have learned so much more about the place and have more respect than ever for it after befriending many Canadians on my travels and even visiting friends there.

However, the cold weather alone would completely and absolutely rule it out for me ... I mean, it is not even in the ballpark, not even for 6 months per year anywhere in the country.
by kramer
Thu Sep 17, 2020 12:15 am
Forum: Personal Finance (Not Investing)
Topic: Preparing for retirement in mid 30s
Replies: 311
Views: 26246

Re: Preparing for retirement in mid 30s

I retired 13 years ago at age 41, single. OP, I honestly think you are cutting it too close here, with the 90/10 portfolio (and all US equities, also) but especially the part about relying on health care subsidies for the next 30 years when you have a family. Not to mention the, say, 25% chance of divorce for a random couple or whatever over that time period. And you are also starting the period with negative real interest rates. Personally, I wouldn't pull the plug until I could pay the estimated health care unsubsidized and with some margin beyond that, also. You don't mention basic things like leisure travel. Honestly, your plan sounds really incomplete. For each additional year you work now, there is a huge long term payoff (higher savi...
by kramer
Sun Sep 13, 2020 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone have a Net Worth in the 1% by age?
Replies: 42
Views: 6533

Re: Anyone have a Net Worth in the 1% by age?

I would (and did) retire long before I made it into the top 1%. I could have kept working hard and probably made it, eventually, but I am very happy I chose not to.
by kramer
Mon Aug 24, 2020 11:52 am
Forum: Personal Consumer Issues
Topic: Best Earbuds with Microphone
Replies: 40
Views: 2805

Re: Best Earbuds with Microphone

It can also depend on the type of call. Wireless/bluetooth always introduces more latency. There is a significant latency difference, also, between 1st gen Air Pods and Air Pods pro (almost a factor of 2). I do language lessons in Skype, which is a bit different than a conference call, in that there is more quick interaction and changing of speakers and more visual looking at the other person speak than a conference call. So I just avoid wireless altogether because I am in front of my computer and don't want to introduce more latency (even though I have high end low latency wireless ear phones -- I just put them in wired mode). Even Air Pods pro have over double the latency of a computer speaker, and that adds up over a round trip. But they...
by kramer
Thu Aug 13, 2020 4:04 am
Forum: Investing - Theory, News & General
Topic: Kitces on Roth Conversions vs. Harvesting Capital Gains
Replies: 169
Views: 13445

Re: Kitces on Roth Conversions vs. Harvesting Capital Gains

Key considerations: Realize that tax brackets are not true marginal dollar rates, and SS, IRMAA, NIIT, state income tax, charitable contributions, cost basis step-up at death, and future rates of heirs must be considered. Another huge variable is future deductible medical costs (think SNF for ten years). I can plan assuming that any residual tIRA funds that have not been Roth converted will carry a future tax liability of 22%, etc. (for either myself or my heirs), but ten years of SNF could easily wipe out the tax liability on $1M of future ordinary income. Kitces certainly doesn't advocate zeroing out the traditional balance, to keep optionality like this for deductible medical expenses available. For us, it would not be wise to use $1M s...
by kramer
Fri Aug 07, 2020 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Retirees: your retirement vs. your parents
Replies: 20
Views: 3049

Re: Retirees: your retirement vs. your parents

My parents never saved money despite making 6 figures in the 1990's, 2000's, etc. My dad got sick at about age 64, had to sell his business at 66, and died at 67, leaving a very low net worth (he had planned to never retire). My mom got lucky and sold the house they had bought a decade earlier with $3,000 down and a 30 year mortgage at the absolute peak of the market and moved into an inherited house. Anyway, she spent most of that and remarried to another spender/dreamer who is still working at age 80. They are about to buy a house with a 30 year mortgage that will cost well more than their entire net worth. To my mom, having an upscale house to live in is what life and retirement is about. She mostly hates to travel to other countries bec...
by kramer
Thu Aug 06, 2020 11:08 am
Forum: Personal Consumer Issues
Topic: My gym is reopening - are you going back to yours?
Replies: 42
Views: 2465

Re: My gym is reopening - are you going back to yours?

Yes, I have gone back, as of 2 weeks ago. Previously, I always went when the gym was uncrowded (mid-day) and now it is even less crowded. I do wear my mask the whole time so I don't get quite as much out of it as before and I also go less frequently now. I am in a low risk category. I don't do any cardio at my gym, I save that for outside running without a mask along with occasional swimming.

My gym checks temperatures at entrance, requires hand sanitizing, bring your own water, no showers, no lockers, mask wearing along with increased sanitizing of equipment.
by kramer
Thu Aug 06, 2020 8:36 am
Forum: Personal Consumer Issues
Topic: Snowbirding on the AL/FLA coast?
Replies: 14
Views: 1543

Re: Snowbirding on the AL/FLA coast?

Yes, not many warm areas in the US during the Winter. This is one reason why places like Playa Del Carmen in Mexico have become Digital Nomad havens (population around 250,000, right on the beach, 45 minutes from Cancun airport, excellent hospitals in Cancun, fast internet). You can get an AirBnb apartment, enjoy the beach, there are co-working spaces so that you can "go into the office"when you want, plenty of English and big restaurant scene, etc. And it's closer than even many US destinations. Average high in January of 81 degrees, low of 68, 2.5 inches of rain. In your spare time you can go to Cozumel or swim in some cenotes. Not for everyone (and especially this year), but just throwing it out there for balance.
by kramer
Thu Aug 06, 2020 8:27 am
Forum: Personal Investments
Topic: Any reason to go Roth over traditional even if staying in 22% tax bracket?
Replies: 52
Views: 2609

Re: Any reason to go Roth over traditional even if staying in 22% tax bracket?

I would also suggest to include State Income taxes in your calculation.