Search found 5160 matches

by MnD
Mon May 08, 2023 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: When does your CC debit your checking acct?
Replies: 18
Views: 1716

Re: When does your CC debit your checking acct?

It's set up for the due date but the funds are actually withdrawn on the next business day after the due date.
by MnD
Mon May 08, 2023 8:49 am
Forum: Personal Finance (Not Investing)
Topic: In Hindsight, did you retire at the right time?
Replies: 109
Views: 13041

Re: In Hindsight, did you retire at the right time?

I had a lot of cliff vesting that hit in late August 2018 (pension, retiree health insurance etc.) but I waited until late November 2018. I was very pleased. My annual work cycles mostly ended in November so it was nice to wrap things up in good shape for my replacement with lots of training. Our annual industry conference was in October and it was nice to attend it on my employers dime and while i still in position as a high-ranking officer and say so long to the innumerable people I had worked with for many years or decades. No way could I have waited longer. Once I didn't need to work anymore I lost all incentive to go longer other than to cleanly exit and go to my last conference. Attending staff meetings in those last few months with d...
by MnD
Mon May 08, 2023 7:46 am
Forum: Personal Finance (Not Investing)
Topic: How to spend more money - request for help regarding an article
Replies: 116
Views: 13571

Re: How to spend more money - request for help regarding an article

Someone quoting Ramit Sethi on another forum.....

Rather than everything being about saving/cutting/budgeting, identify the things that really make you feel like you are living richly, spend on those things, and cut aggressively on the things that don't matter to you.

That's basically what we do.
by MnD
Sun May 07, 2023 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Retirement cash flow/income - could you give some examples please?
Replies: 103
Views: 11808

Re: Retirement cash flow/income - could you give some examples please?

Two direct deposits monthly into checking. One pension and one auto-withdrawal from our largest retirement account. Withdrawal from retirement account is adjusted annually per my IPS in signature below. 1/12th of 5% of annual balance. All credit cards set to auto-pay in full on the same day of the month. 95% of spending is done on CC's. Any remaining monthly balance after auto-pays is transferred to our big-ticket item account (new vehicles, major home expenses). It's very much like how we managed income in and out while working except no diversion of income to retirement savings. Income taxes are paid quarterly from our other retirement/investment accounts. 1/4 of 5% of balance. It's just a coincidence that the largest account balance is t...
by MnD
Sat May 06, 2023 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to spend more money - request for help regarding an article
Replies: 116
Views: 13571

Re: How to spend more money - request for help regarding an article

TheTimeLord wrote: Sat May 06, 2023 5:07 pm I think people forget why they started saving in the first place and it starts becoming the ultimate goal as opposed to a means to an end. And we continuing saving even more with the idea of making our life riskless but often it is just becoming lifeless.
Wow! You summed my many years and innumerable paragraphs of blah blah blah on this topic in 2 sentences!
by MnD
Thu May 04, 2023 3:43 pm
Forum: Investing - Theory, News & General
Topic: What is your expectation for portfolio growth in retirement?
Replies: 73
Views: 7430

Re: What is your expectation for portfolio growth in retirement?

With a 5% of annual portfolio balance withdrawal, 70/30 35 year real (inflation-adjusted) portfolio growth has been right around zero under average or median sequences of return in the past 1871 to date.
https://www.cfiresim.com/14f7687b-9e0e- ... 546ceb1afb

Almost 5 years in I'm right at 0% real growth which is just dandy as far as I'm concerned.
My most pessimistic and optimistic boundaries is checking out with 1/2 to 2X real of what I started with.
by MnD
Tue Apr 11, 2023 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Subtle Costs That Increase in Retirement?
Replies: 88
Views: 8468

Re: Subtle Costs That Increase in Retirement?

We didn't have any meaningful increases in our costs when we retired other than travel which was completely voluntary.
The biggie increase would have been ACA health insurance but we can stay on my federal plan.

Our net income remained the same.
Big decreases were income/payroll taxes, vehicle insurance and other vehicle costs and work lunch restaurant purchases.
Also savings on food because we have time to be much more careful shoppers with more time for from scratch cooking.
by MnD
Tue Apr 11, 2023 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Lost tax refund check - time for replacement?
Replies: 2
Views: 295

Lost tax refund check - time for replacement?

My son and daughter-in-law did not receive the refund check from an amended tax return.
For various reasons they were not able to file an electronic amendment so were stuck with receiving a paper refund check.

Recently they received a letter saying the refund had been processed and saw an image of the check on the USPS daily email of coming soon mail.
But it never arrived and has now been 10+ days since receiving the USPS image of the check.

They completed a form 3911 and faxed it to the correct refund inquiry unit. Amazingly married filing joint returns have to mail or fax a paper form to report a lost check.

Anyone have experience with how long it takes to receive a replacement check for a lost tax refund paper?
by MnD
Mon Apr 10, 2023 9:26 am
Forum: Personal Investments
Topic: Any Reason to Stay in TSP
Replies: 75
Views: 10532

Re: Any Reason to Stay in TSP

My reasons to stay (participant since 1987...) - Amassed and am maintaining a 7-figure balance and was/am never tempted (or able) to do anything really stupid. - Although I am reformed, I did plenty of stupid things in IRA's and taxable accounts over the past decades. - I was able to use the rule of 55 to take installment payments when i retired at 56 without penalties or SEPP IRA complexities. - G fund is the ultimate "take your risk on the equity side" while earning intermediate term yields. Interest risk hadn't shown up since the late 70's but then 2021/22 happened. - Until quite recently costs were superior and are now not meaningfully different (IMO) than other options. - My ISP follows (arguably) best practices of proportion...
by MnD
Sat Apr 08, 2023 9:02 am
Forum: Personal Investments
Topic: 1 mil portfolio can withdraw 3% perpetually/safely?
Replies: 59
Views: 7978

Re: 1 mil portfolio can withdraw 3% perpetually/safely?

All spending and balances below are in real dollars.
If the future is similiar to the past you'll end up checking out with about $5M.
The range of past sequences would have ending values varies from around $.6M to $20M.

If you experienced something like the 95th percentile past worst sequence your heirs still end up with a significantly more than you started with.

https://www.cfiresim.com/8cf1162b-1d29- ... 373f3affbe
Image
by MnD
Fri Apr 07, 2023 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Sister Didn't File 2021 Taxes
Replies: 13
Views: 1809

Re: Sister Didn't File 2021 Taxes

OMG I've done so many multiple years of late returns for my wife's sister.
W-2, renter, single.

Reload up the past versions of tax software from olden days......
If she owes a little they just cash the check.
If owed a refund she gets it if within the number of years that refunds are allowed.

They have never sent her a letter even when years have gone by with no filings.
Nor any comments after filing X years late.

We are now on a "I will not help you with anything but current year taxes" and that has worked for the past several years. :mrgreen:
by MnD
Thu Apr 06, 2023 3:14 pm
Forum: Investing - Theory, News & General
Topic: Social Security and Asset Allocation
Replies: 73
Views: 10870

Re: Social Security and Asset Allocation

Everyone here seems comfortable in converting a volatile stock/bond portfolio into some constant comfy revenue stream number they are happy with, but some lose their mind when the opposite is done. On a NPV basis things break down for us as follows: Portfolio: 48% (drawing from currently) 70/30 Pension: 28% (drawing from currently) SS: 24% (not yet claimed) Our true needs are about 1/3 that of what we are currently drawing from pension and portfolio. I find it qualitatively informative to put the portfolio in context with the value of other retirement assets. My AA would be very different, and quite possibly my SWR approach if the above was overwhelming portfolio on a % basis. But I'm not going to go all-in and conclude I'm really 33/67 sto...
by MnD
Thu Apr 06, 2023 2:44 pm
Forum: Investing - Theory, News & General
Topic: Social Security and Asset Allocation
Replies: 73
Views: 10870

Re: Social Security and Asset Allocation

How close are you to taking social security? Have you factored in the 25% reduction expected in 2034 ? Is this official or just a guesstimate? It's an official guesstimate... It’s current law. I.e. if the projections hold, which seems the most likely outcome, then social security benefits will be cut by the 25% (thought it was 23% actually). Speculating on whether new legislation might be passed to prevent this from happening are of course against forum rules... Under current law most US government functions services and payments will shut down in a few months when the statutory debt ceiling is reached and again when 2023 appropriation authority lapses on Sept 31. Have you figured that into your retirement model? If not, why not since it's...
by MnD
Wed Apr 05, 2023 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Guilt Free Spending - 20 to 35 Percent of Net?
Replies: 155
Views: 16603

Re: Guilt Free Spending - 20 to 35 Percent of Net?

Been to plenty of funerals in the past 4 years for people in the late 50's and 60's who never got any retirement, most of them were planning golden years that never happened. Our portfolio is larger now than when we retired 4+ years ago and I'm almost certain we are going to run out of time and/or health/energy versus running out of money. Based on everything revealed in your post you’re likely going to run out of energy in the next decade, spend drastically less than you have been, and die with tons of money in the bank. So really you will have saved way too much. (Unless that was the goal) Hmmmm..... Being sedentary and staying home does not "save energy" for later IMO. Just the opposite in fact. Use it or lose it is what I obs...
by MnD
Sun Apr 02, 2023 1:25 pm
Forum: Investing - Theory, News & General
Topic: SS 2023 Trustees report released
Replies: 18
Views: 2363

Re: SS 2023 Trustees report released

In the past when these entitlement programs reached the point of not being able to pay full benefits, sources of revenue were increased very rapidly and cuts to benefits were phased in very slowly over decades. The 1983 increase in the FRA is still not fully phased in yet 40 years later and won't be until 2026!

Worrying that sudden significant benefit cuts will be made for current retirees or those approaching retirement age on some afternoon in 203X is a waste of time.
by MnD
Sun Apr 02, 2023 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Guilt Free Spending - 20 to 35 Percent of Net?
Replies: 155
Views: 16603

Re: Guilt Free Spending - 20 to 35 Percent of Net?

Ramit Sethi says you can spend 20-35 percent of your take home pay on what he calls “guilt free spending” (exclusive of your fixed costs). In my case, using the most conservative numbers possibly (and understating the case) it would be $2800-3600/mo. My current nonessential spending (I never feel guilt about spending) is about $600/mo and I buy and do whatever I want. $2800-3600 each month on nonessentials (unless one is just really unhappy or has a lot of kids) seems crazy to me. He’s wrong, isn’t he? (Updating to say he actually says 20-35 percent of net, which for me is, most conservatively using base salary only, is $2800-4900!) I am neither unhappy nor do I have kids and I spend several thousands per month on things other than bills, ...
by MnD
Sat Apr 01, 2023 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Loaning 2nd car to adult kids for 5 weeks - report to insurance?
Replies: 11
Views: 1141

Loaning 2nd car to adult kids for 5 weeks - report to insurance?

My son's car was stolen yesterday and we are soon leaving on a multi-week trip.
So they can just have it for the next 5 weeks while they sort things out.
Son works from home but daughter-in-law will be commuting with it 3 days a week.

Is this something that needs to be reported to our insurance?
by MnD
Sat Apr 01, 2023 8:19 am
Forum: Investing - Theory, News & General
Topic: Is the FERS pension actuarially neutral?
Replies: 52
Views: 5170

Re: Is the FERS pension actuarially neutral?

Weathering wrote: Fri Mar 17, 2023 10:17 am
MnD wrote: Fri Mar 17, 2023 7:55 am I went out at the top of the GS pay grid at 56 with 36 years including SL credits.
Quick question: by going out at age 56 did you lose access to FEHB?
I will only have about 6 months of SL at age 57 (with 35 years service) because of using several months in the past as maternity leave. But, if SL counts toward reaching MRA, then I could retire at the end of the calendar year before my 57th birthday. I doubt I’ll do this but it would be good to know.
My MRA was 56. The SL credit does not count for years to reach your MRA or for meeting XX years of service requirements to retire.
It just adds months for annuity payment calculations.
by MnD
Fri Mar 17, 2023 8:45 am
Forum: Investing - Theory, News & General
Topic: Is the FERS pension actuarially neutral?
Replies: 52
Views: 5170

Re: Is the FERS pension actuarially neutral?

Yes, the inflation factor is one that has piqued my interest. The five-year gap without a COLA can reek havoc especially in early retirement (I understand the concern many face without COLA'd pension/annuity). Your Social Security PIA is still increasing (by a wage growth index) even if you aren't working and delaying claiming and your portfolio has growth potential. And the hit is limited to 6 years. Most non-COLA'd pensions or annuities are looking at decades of no adjustment. The real return from portfolio will likely (sooner or later) take care of age 57-62 inflation erosion from FERS. Since I retired 4-year compounded inflation has been 15% and my total retirement income from portfolio and FERS is up 17% with no COLA. And I have only ...
by MnD
Fri Mar 17, 2023 7:55 am
Forum: Investing - Theory, News & General
Topic: Is the FERS pension actuarially neutral?
Replies: 52
Views: 5170

Re: Is the FERS pension actuarially neutral?

With delaying FERS and 30-something years of service you gain roughly 3% per year for each incremental year, the COLA to your high-3 is arbitrary and unknown (set by POTUS and congress) and you are wasting the FERS supplement, offset somewhat by the 1.1% kicker but only if you go till 62. With delaying social security you are gaining 8% per year by delaying and you get a COLA based on US wage growth. And with no requirement to be working while you delay. I went out at the top of the GS pay grid at 56 with 36 years including SL credits. Bottom line if you are financially prepared to retire and want to retire go for it. There are no outsized credits for delaying and you are wasting the healthiest and most active years of your retirement. All ...
by MnD
Thu Mar 16, 2023 9:43 pm
Forum: Personal Investments
Topic: What are retirees who "over saved" doing with funds?
Replies: 72
Views: 6827

Re: What are retirees who "over saved" doing with funds?

I'd opine nothing except doing exceptionally well in the richest in the graveyard contest.
Most of the extreme over-savers here never mention what positive things they are doing now with unneeded funds.
If you stack and compound various worst case scenarios it's easy to not spend much of anything.
Heirs might be happy although I know a few heirs that really feel bad for over-saving parents that missed out on some great things.
by MnD
Thu Mar 16, 2023 1:07 pm
Forum: Investing - Theory, News & General
Topic: If I was retiring today, I could comfortably withdraw 5% (mid-30s dad using ERN SWR Toolbox)
Replies: 240
Views: 26819

Re: If I was retiring today, I could comfortably withdraw 5% (mid-30s dad using ERN SWR Toolbox)

We're well into year 5 of withdrawing 5% of annual portfolio balance and it's working out great despite 2 or 3 bear markets, a global pandemic and war in Europe. Nominal and inflation-adjusted portfolio balance (and annual income) is higher than when we started in our mid-50's. Her Social Security at 62 and mine at 70 will backfill very nicely if a poor sequence of returns arises and dings our income from portfolio considerably (since it's % of balance). My current pension reduces the volatility of total income already. SS income streams will reduce that volatility even further. True needs are roughly 1/3 of income so lots of flexibility. Doing the SWR limbo (how low can you go!) is popular here for reasons that escapes me. I get the sense ...
by MnD
Sun Mar 12, 2023 4:40 pm
Forum: Investing - Theory, News & General
Topic: What happens if Schwab goes under?
Replies: 89
Views: 18944

Re: What happens if Schwab goes under?

Cash, whether in Schwab checking, savings or uninvested cash in your brokerage account is swept into FDIC Schwab bank. If it's over 250K, Schwab has an program to spread it across multiple banks. If it's invested it's it stocks, bond or mutual funds, all have many protections preventing problems at the brokerage from affecting your securities. Even money market funds. Is there a twilight zone say after the sale of a security and the sweep into FDIC Schwab bank? Maybe/doubtful but if that sort of thing keeps you up at night I don't see how you could stomach the volatility of owning stocks, bonds or mutual funds. SWVXX isn't at risk if Schwab Inc. has issues. Its risk would be in the very short-term commercial paper and other non-government s...
by MnD
Sun Mar 12, 2023 3:52 pm
Forum: Investing - Theory, News & General
Topic: What happens if Schwab goes under?
Replies: 89
Views: 18944

Re: What happens if Schwab goes under?

JoMoney wrote: Sun Mar 12, 2023 11:40 am
MnD wrote: Sun Mar 12, 2023 11:38 am
JoMoney wrote: Sun Mar 12, 2023 10:50 am
MnD wrote: Sun Mar 12, 2023 10:34 am I'm guessing Fidelity is not regretting their decision to not own a real bank.
Not sure if that was sarcastic or not. Not being exposed to the financial shenanigans of a "real bank" would seem to be less exposure to this whole borrowing short from depositors, and lending long term, that banks do.... and get into trouble with when short-term depositors want their money and their long-term investments have fallen in value.
I was serious.
How/why did you think owning a real bank would put Fidelity in a better position at this point in time?
I don't. That's why I said "I'm guessing Fidelity is not regretting their decision to not own a real bank"
by MnD
Sun Mar 12, 2023 11:38 am
Forum: Investing - Theory, News & General
Topic: What happens if Schwab goes under?
Replies: 89
Views: 18944

Re: What happens if Schwab goes under?

JoMoney wrote: Sun Mar 12, 2023 10:50 am
MnD wrote: Sun Mar 12, 2023 10:34 am I'm guessing Fidelity is not regretting their decision to not own a real bank.
Not sure if that was sarcastic or not. Not being exposed to the financial shenanigans of a "real bank" would seem to be less exposure to this whole borrowing short from depositors, and lending long term, that banks do.... and get into trouble with when short-term depositors want their money and their long-term investments have fallen in value.
I was serious.
by MnD
Sun Mar 12, 2023 10:34 am
Forum: Investing - Theory, News & General
Topic: What happens if Schwab goes under?
Replies: 89
Views: 18944

Re: What happens if Schwab goes under?

I'm guessing Fidelity is not regretting their decision to not own a real bank.
by MnD
Sun Mar 12, 2023 10:21 am
Forum: Investing - Theory, News & General
Topic: What happens if Schwab goes under?
Replies: 89
Views: 18944

Re: What happens if Schwab goes under?

I posted last week that I had a hunch that Schwab will index their sweep bank account interest to their government money market fund.
Like they have done so in their robo-accounts. I think the odds of this happening just went up a lot.
by MnD
Sun Mar 12, 2023 10:00 am
Forum: Investing - Theory, News & General
Topic: What happens if Schwab goes under?
Replies: 89
Views: 18944

Re: What happens if Schwab goes under?

If Schwab drops another 25% I'll be tempted to buy some shares. The last two individual stocks I owned were Schwab and Costco and did very well with both. Interesting parallel with this thread https://www.bogleheads.org/forum/viewtopic.php?t=399783 where the poster discusses owning Silicon Valley Bank and Costco. Curious why Costco is the choice of stock to pair with a financial firm.... :? Before I gave up individual stocks entirely I only invested in companies where I had observed significant shifts in our household spending or (wealth) to those institutions. The 3 biggies were Schwab, Costco and Amazon. Did I invest in Amazon? Of course not because they had lost money forever and everything I read saw no end in sight to that. :oops: But...
by MnD
Sun Mar 12, 2023 9:35 am
Forum: Investing - Theory, News & General
Topic: What happens if Schwab goes under?
Replies: 89
Views: 18944

Re: What happens if Schwab goes under?

If Schwab drops another 25% I'll be tempted to buy some shares.
The last two individual stocks I owned were Schwab and Costco and did very well with both.
by MnD
Thu Mar 09, 2023 9:34 am
Forum: Investing - Theory, News & General
Topic: How does Schwab make money from its roboadvisor?
Replies: 13
Views: 2346

Re: How does Schwab make money from its roboadvisor?

Great thread. Indexing the FDIC bank sweep rate to SWGXX is a huge improvement. It's interesting it's not actually invested in SWGXX, allowing Schwab bank to earn higher returns on the spread. This service (SIPP) seems very competitive now and is now on my "consider list" whereas previously it was not. The negative threads I've seen regarding SIP and SIPP focused on the FDIC cash slice earning far less. Regarding the very transparent disclosure on the .30 overall cap, that seems hard to hit unless the fundamental indexing ETF's were deployed, especially the Invesco ones (which likely pay for placement). I have never heard of the Xtracker ETF's. Low ER's but perhaps they too would pay Schwab. Is there a "switch" to includ...
by MnD
Wed Mar 08, 2023 8:22 am
Forum: Personal Investments
Topic: Moving from VBTLX to an ETF- what to choose?
Replies: 37
Views: 2882

Re: Moving from VBTLX to an ETF- what to choose?

What's your marginal tax bracket?

In your situation I would sell VBTLX in your taxable account (assuming you would realize a tax loss) at Vanguard and purchase VTEB (Vanguard Tax-Exempt Bond ETF). That would transfer nicely to Schwab or Fidelity when you are ready to do so and will be a more tax efficient placement.
Simplicity is great but proper placement of assets for tax reasons should not to be ignored.

Schwab has a muni ETF with a lower expense ratio SCMB (.03) but it's only a few months old. If you end up with an unrealized loss in VTEB, SCMB could be a tax-loss trade pair down the road.
by MnD
Tue Mar 07, 2023 2:04 pm
Forum: Investing - Theory, News & General
Topic: Anyone experience problems with TSP RMDs in 2022?
Replies: 30
Views: 4206

Re: Anyone experience problems with TSP RMDs in 2022?

And meanwhile they still haven't fixed the minimum installment payment programming error for those not subject to RMD's. It took them months to even acknowledge it was a problem and no fix a month later. "We are in the process of addressing this issue." Sounds like they are incapable of trouble-shooting their own code in a timely manner. As of 03/07/2023, I see this at the Known Issues page: Current known issues There are no known issues at this time Is this true? The problem with installment payment setups failing below a certain (erroneous) $ threshold has been resolved. I just set up a desired amount that was repeatedly rejected for being "too low" in January. Spouse received the Docusign document within seconds of m...
by MnD
Mon Mar 06, 2023 3:59 pm
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25907

Re: Are Bogleheads rational about Social Security decisions?

I'm very surprised at the number of people in this thread believing that SS early claiming penalties and delayed claiming credits are actuarially neutral. They are not, even for those of average life expectancy. It's even more favorable for Boglehead demographics which I'd opine trends towards higher income, more education, better access to health care and less smoking than average. Also the higher income delaying strategy for a 2-benefit couple isn't actuarially offset and represents an additional free lunch given joint life expectancies. The lower earner who penalizes themselves by claiming early, inherits the higher earners benefit if they survive them. But it's good to look at the sensitivity of less than perfect claiming strategies. I...
by MnD
Mon Mar 06, 2023 9:10 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25907

Re: Are Bogleheads rational about Social Security decisions?

The history of trust depletions (1982 for SS and SSDI quite recently) is that program revenue is increased rapidly and significantly (SS 1982, new Medicare taxes, 2010) or the trust fund shortfall is met with funds from other accounts (SSD I). Any benefit cuts are pushed decades out - the cuts to SS benefits put in place in 1982 are not even fully phased in yet for those retiring at full retirement age now!

The medicare trust fund (Part A) will deplete prior to the SS trust fund so we will have another history lesson to reflect on in the late 2020's.
by MnD
Sun Mar 05, 2023 7:04 pm
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25907

Re: Are Bogleheads rational about Social Security decisions?

I'm very surprised at the number of people in this thread believing that SS early claiming penalties and delayed claiming credits are actuarially neutral. They are not, even for those of average life expectancy. It's even more favorable for Boglehead demographics which I'd opine trends towards higher income, more education, better access to health care and less smoking than average. Also the higher income delaying strategy for a 2-benefit couple isn't actuarially offset and represents an additional free lunch given joint life expectancies. The lower earner who penalizes themselves by claiming early, inherits the higher earners benefit if they survive them. But it's good to look at the sensitivity of less than perfect claiming strategies. In...
by MnD
Sun Mar 05, 2023 11:11 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25907

Re: Are Bogleheads rational about Social Security decisions?

I forget where I read it. It was years ago, but it was to the effect that people that claim at 62 receive on average the same benefit in total dollars received as those that delay until 70. They receive a smaller amount over a longer time frame. Those that delay have higher monthly payments but for a shorter time. Yes - that is how it is designed. You get around the same total amount assuming you die at the age in the SS actuarial table. Your bet is whether you will live past that age or not, if you're concerned about total lifetime benefits. If you are only interested in maximizing the annual benefit, then you would delay. That's not correct. If it were, the net present value calculations of claiming choices (which takes into account fewe...
by MnD
Sun Mar 05, 2023 10:41 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25907

Re: Are Bogleheads rational about Social Security decisions?

Changes in interest rates and life expectancies since the delay credit rates were established in the early 1980's have tilted the equation in favor of delaying to at least FRA for the average person. For higher incomes, who experience significantly longer life expectancies, the equation is in favoring of delaying to 70 versus actuarial fairness. This paper does not consider the "free lunch" aspect of a couple with a significant difference in incomes and SS, further tilting the benefit in favor of delaying for that demographic. So no, the current level of credits are not an actuarial coin toss of indifference, especially for Bogleheads who likely benefit from high income and education and often benefit from the married higher/lower...
by MnD
Sat Mar 04, 2023 9:37 am
Forum: Personal Investments
Topic: TLH VTSAX and setting up VTI etf
Replies: 8
Views: 759

Re: TLH VTSAX and setting up VTI etf

ITOT or SCHB would be appropriate tax loss harvesting ETF's for VTSAX. You do not need to wait 30 days or add complexity by buying multiple ETF's to replicate VTSAX. I suggest you practice selling a small amount of VTSAX and buying a small amount of either ITOT or SCHB to practice so you get an idea of how TLH'ing a mutual fund and purchasing an ETF works. Your sentence "I suppose I need to first set up my VTI fund before I can TLH into it" suggests you don't understand the basic mechanics of ETF's or how to purchase them. They are mutual funds that trade like a stock. They are not something you "set up" before purchasing them. You sell VTSAX and when the proceeds from that sale are "available to trade" you pur...
by MnD
Fri Mar 03, 2023 11:35 am
Forum: Investing - Theory, News & General
Topic: Anyone experience problems with TSP RMDs in 2022?
Replies: 30
Views: 4206

Re: Anyone experience problems with TSP RMDs in 2022?

And meanwhile they still haven't fixed the minimum installment payment programming error for those not subject to RMD's. It took them months to even acknowledge it was a problem and no fix a month later. "We are in the process of addressing this issue." Sounds like they are incapable of trouble-shooting their own code in a timely manner. https://www.tsp.gov/news-and-resources/plan-news/ Posted: February 3, 2023 Temporary issue with installment payment requests — The TSP has a programming issue that is preventing some participants from setting up installment payments in the amount they desire. We are in the process of addressing this issue. In the meantime, a temporary work-around is for you to request partial withdrawals instead o...
by MnD
Thu Mar 02, 2023 9:24 am
Forum: Personal Investments
Topic: 13 year SS bridge: what TSP investment?
Replies: 50
Views: 4343

Re: 13 year SS bridge: what TSP investment?

I would leave it in the 2025 fund and just let it age into the L fund in a couple years. A bit of growth potential for a 13-year bridge fund doesn't seem too wild and crazy. Unlike many of the posters here, you have (in additional to a defined contribution account now and Social Security in the future), a FERS lifetime annuity starting at age 57 and a FERS annuity supplement which mimics a Social Security payment for age 57 till age 62. The value of these safe income streams is akin to a very substantial fixed income holding so you can afford to maintain a little bit of risk with your bridge fund. I'm assuming you are not on the bleeding edge of being able to afford retirement relative to fixed expenses with this suggestion. Personally my a...
by MnD
Thu Mar 02, 2023 9:11 am
Forum: Investing - Theory, News & General
Topic: How long to transfer a ROTH account from Schwab to Vanguard
Replies: 17
Views: 1873

Re: How long to transfer a ROTH account from Schwab to Vanguard

batangueno wrote: Wed Mar 01, 2023 9:19 pm Thank you. Yeah. I was surprised by the lack of a chat. Bogleheads think highly of Vanguard that's why I decided to switch. I thought there is no better place to buy VTI and BND than at Vanguard itself. :D
I doesn't make any difference for ETF's.
Schwab has exceptional customer service and IMO a good website.
A great Investor Checking account.

Schwab has higher expense ratios on Money Market Funds and you have to make sure to move any uninvested cash to their Money Market accounts (or CD's or T-bills). The default for cash is a low yielding FDIC bank sweep account.
by MnD
Wed Mar 01, 2023 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Did you take Social Security before 70 and not regret the decision?
Replies: 160
Views: 12363

Re: Did you take Social Security before 70 and not regret the decision?

One (or a couple of) the Boglehead podcasts discussed the advantages of delaying claiming (especially for the higher earner) and withdrawing more from portfolio for the years between retirement and claiming.

So assuming you have a decent portfolio to withdraw from, you aren't sacrificing in terms of lifestyle income during the early go-go years of retirement even if you delay SS to 70. The higher SS income pays you back for the higher portfolio withdrawals you made earlier.
by MnD
Wed Mar 01, 2023 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Did you take Social Security before 70 and not regret the decision?
Replies: 160
Views: 12363

Re: Did you take Social Security before 70 and not regret the decision?

We will claim at 62 (her) and 70 (me). Doing otherwise is (statistically) leaving money on the table from a maximum net present value perspective. Do the math and ignore hunches or rules of thumb. https://opensocialsecurity.com/ Doesn't delaying to 70 leave money on the table for a male? I presume Mike Piper has a better grasp of addressing that question than I do. His calculator does collect age, gender and PIA for each in a couple. Me claiming any sooner than 70 always decreases the net present value of our combined benefit and significantly so. Her claiming later has a very small impact on the NPV. She could delay 5 years and the our NPV is still 99.1% of optimum. Were I to claim 5 years earlier the NPV is roughly 90% of optimum.
by MnD
Wed Mar 01, 2023 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Did you take Social Security before 70 and not regret the decision?
Replies: 160
Views: 12363

Re: Did you take Social Security before 70 and not regret the decision?

We will claim at 62 (her) and 70 (me).
Doing otherwise is (statistically) leaving money on the table from a maximum net present value perspective.

Do the math and ignore hunches or rules of thumb.
https://opensocialsecurity.com/
by MnD
Tue Feb 28, 2023 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: TSP Installment Payment Plan Setup
Replies: 13
Views: 1392

Re: TSP Installment Payment Plan Setup

Tbird59 wrote: Tue Feb 28, 2023 2:55 pm I was able to successfully initiate and complete an installment payment based on a fixed amount on 2/27/2023. Worked pretty slick with no hiccups. Spouse had to docusign a consent, which was received right away via email. Seems to be a hit and miss situation. Three weeks prior, it was not even an option.
I read something a couple days ago in some fed newsletter than someone reported that the problem has been fixed.
So either it has, or your request was above the erroneous minimum.

I'm going to cancel my current "too high" installment this week and attempt to enter the lower amount that was failing.
I'll report back and if it works I would assume the whole issue has been fixed.
by MnD
Tue Feb 28, 2023 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: TSP Installment Payment Plan Setup
Replies: 13
Views: 1392

Re: TSP Installment Payment Plan Setup

The problem is that they have (erroneously) linked installment payment minimums to some sort of an aged based RMD table even for people not subject to RMD's. This causes a much higher minimum installment payment than what it should be at $25. I am 60, obviously not subject to RMD's but experienced the same issue in January when I tried to change my installment payment amount. So the rep tries to enter an installment payment amount that is less than the erroneous minimum amount and the set-up transactions fails. Your spouse never gets the consent email because the installment payment was never actually entered. It has nothing to do with the email getting lost since it was never generated. A sharp-eyed rep who knows what to look for in terms ...
by MnD
Mon Feb 27, 2023 11:19 pm
Forum: Personal Investments
Topic: Treasury Bill Ladder
Replies: 15
Views: 4199

Re: Treasury Bill Ladder

confusedinvestor wrote: Mon Feb 27, 2023 10:20 pm
MnD wrote: Mon Feb 27, 2023 7:02 pm I have a 26 week bill ladder of 6 bills, which one bill maturing every month which is rolled over to a new 26 week bill.
If some amazing investment opportunity arose (or massive unexpected expense) you can just sell the bills not yet matured on the secondary market.
Don't overthink it as it's not rocket science.
How did you create this ladder?
Buy a 26-week t-bill at auction every 4 weeks for 6 cycles.
Or just go into the secondary market and buy them all at once.
by MnD
Mon Feb 27, 2023 7:02 pm
Forum: Personal Investments
Topic: Treasury Bill Ladder
Replies: 15
Views: 4199

Re: Treasury Bill Ladder

I have a 26 week bill ladder of 6 bills, which one bill maturing every month which is rolled over to a new 26 week bill.
If some amazing investment opportunity arose (or massive unexpected expense) you can just sell the bills not yet matured on the secondary market.
Don't overthink it as it's not rocket science.
by MnD
Mon Feb 27, 2023 6:56 pm
Forum: Personal Investments
Topic: Wash sale
Replies: 9
Views: 545

Re: Wash sale

So just make it a lot more simple and buy VTI whenever you want to.
by MnD
Sun Feb 26, 2023 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: 529 withdrawal in owners name and no 1098-T
Replies: 2
Views: 348

Re: 529 withdrawal in owners name and no 1098-T

I made a withdrawal of 529 funds of which I am the owner to myself. An adult non-dependant child is the beneficiary. The adult child completed this 4-course part-time graduate certificate program from an accredited higher educational institute. https://universitycollege.du.edu/ict/degree/certificate/cybersecurity-management-online/degreeid/572 The institution is a federal aid qualified institution, but the 4-course 6-month certificate programs are not eligible for federal aid nor are 1098-T's issued. I provided the funds to my child who applied all the funds towards the certificate tuition. I have a copy of the receipt from the University indicating the tuition and payment. In retrospect I should have issued the 529 payment to my son or to...