Search found 759 matches

by Admiral
Mon Sep 25, 2017 11:54 am
Forum: Investing - Theory, News & General
Topic: Selling Taxable to Top of Bracket: What does it mean?
Replies: 14
Views: 952

Re: Selling Taxable to Top of Bracket: What does it mean?

Just a thought (that I know others here will probably poo poo): If you have a portfolio such that your will have significant RMDs, it might behoove you to spend an hour or two with a good accountant. Taxes in retirement can be complicated (as you can see from the upthread comments), and it sounds li...
by Admiral
Mon Sep 25, 2017 11:41 am
Forum: Investing - Help with Personal Investments
Topic: I don't understand investing beyond retirement
Replies: 11
Views: 940

Re: I don't understand investing beyond retirement

I've paid off debts, started saving 15% of my paycheck into a 403(b), and have started maxing out my Roth IRA each year. I have a place to live and a car, so I'm wondering how to approach investing now? I've focused on learning about retirement, so I don't know much else. I'm not necessarily saying...
by Admiral
Mon Sep 25, 2017 11:31 am
Forum: Investing - Help with Personal Investments
Topic: I don't understand investing beyond retirement
Replies: 11
Views: 940

Re: I don't understand investing beyond retirement

I've paid off debts, started saving 15% of my paycheck into a 403(b), and have started maxing out my Roth IRA each year. I have a place to live and a car, so I'm wondering how to approach investing now? I've focused on learning about retirement, so I don't know much else. I'm not necessarily saying...
by Admiral
Sun Sep 24, 2017 2:34 pm
Forum: Investing - Theory, News & General
Topic: Bond funds and stock funds, which one is riskier?
Replies: 23
Views: 1549

Re: Bond funds and stock funds, which one is riskier?

Depends how you define "risk." If you're retired and have too many bonds, you risk running out of money. Bonds are for safety, not risk or return. That's what stocks are for. As an aside, Vanguard Total Bond Index has been around since 1986. Its worst return was (if I recall) -2.44%. I think you can...
by Admiral
Sat Sep 23, 2017 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone own a home and drop insurance coverage after mortgage paid off?
Replies: 36
Views: 2154

Re: Anyone own a home and drop insurance coverage after mortgage paid off?

Wondering if anyone here has experience (positive or negative) with getting rid of their homeowners policy completely after they paid off their mortgage. Does it make sense to essentially self insure if one can afford it? The vast majority of the value of my property is in the land. I have to pay h...
by Admiral
Sat Sep 23, 2017 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone own a home and drop insurance coverage after mortgage paid off?
Replies: 36
Views: 2154

Re: Anyone own a home and drop insurance coverage after mortgage paid off?

Think of it this way: You're "investing" the $2k per year or whatever you pay to insure the home so you don't have to keep the capital on hand to either rebuild the home or pay for a new place to live if it burns to the ground. Even if your home is worth $50k, that strikes me as a smart bet. Otherwi...
by Admiral
Fri Sep 22, 2017 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 97
Views: 10296

Re: The Magic of Savings Rate

Love MMM but he's no Boglehead (nor does he attempt to be). Bogleheads (if one had to generalize) do believe in simplicity, low expenses, and LBYM...but not extreme frugality. The problem with the chart is that the less one makes, the more difficult it becomes to save a percentage that will achieve...
by Admiral
Fri Sep 22, 2017 12:16 pm
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 105
Views: 6114

Re: No More Saving???

Personally I disagree because you are just postponing the tax liability not forgoing it. You will pay taxes on that income, possibly more than you hadn't deferred it. The point it that you can not only postpone it indefinitely (like perhaps until you die), but that you are likely to pay LESS tax (a...
by Admiral
Fri Sep 22, 2017 11:41 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 105
Views: 6114

Re: No More Saving???

Correct me if I am mistaken but you don't include tax deferred contributions as income when calculating effective tax rate do you? TheTimeLord, 1) You do include the tax-deferred income. Effective tax rate = tax / gross income. In my case, I am referring to my Federal Income Tax when I said 5% effe...
by Admiral
Fri Sep 22, 2017 11:29 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 105
Views: 6114

Re: No More Saving???

This is what I don't understand. People who make far more than me pay a lot smaller percentage of their income in taxes. My brother-in-law, this last tax season, ended up paying $500 in federal income tax for the entire year. I paid $5,000 in federal income tax. His gross income is 40% higher than ...
by Admiral
Fri Sep 22, 2017 11:15 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 105
Views: 6114

Re: No More Saving???

Either I pay the tax now or I pay the tax in the future when I take the distributions from the 401k. Assuming the same tax rate, it makes no difference if you pay the tax now or later. For example, if I pay the tax on $100 and contribute $80 after paying 20% tax, and then it grows 10%, then I have ...
by Admiral
Fri Sep 22, 2017 11:05 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 105
Views: 6114

Re: No More Saving???

Either I pay the tax now or I pay the tax in the future when I take the distributions from the 401k. Assuming the same tax rate, it makes no difference if you pay the tax now or later. For example, if I pay the tax on $100 and contribute $80 after paying 20% tax, and then it grows 10%, then I have ...
by Admiral
Fri Sep 22, 2017 9:17 am
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 97
Views: 10296

Re: The Magic of Savings Rate

Love MMM but he's no Boglehead (nor does he attempt to be). Bogleheads (if one had to generalize) do believe in simplicity, low expenses, and LBYM...but not extreme frugality. The problem with the chart is that the less one makes, the more difficult it becomes to save a percentage that will achieve ...
by Admiral
Thu Sep 21, 2017 9:25 am
Forum: Investing - Theory, News & General
Topic: What inflation rate do you use for your planning?
Replies: 105
Views: 8471

Re: What inflation rate do you use for your planning?

I use 2% expected inflation, 4% expected nominal return (2% real) after expenses, but not taxes. 2% real return over the long term? That strikes me as very pessimistic for a balanced portfolio that contains equities. I'm not sure how many here could ever save enough to retire using that projection,...
by Admiral
Thu Sep 21, 2017 8:46 am
Forum: Investing - Theory, News & General
Topic: What inflation rate do you use for your planning?
Replies: 105
Views: 8471

Re: What inflation rate do you use for your planning?

I use 2% expected inflation, 4% expected nominal return (2% real) after expenses, but not taxes. 2% real return over the long term? That strikes me as very pessimistic for a balanced portfolio that contains equities. I'm not sure how many here could ever save enough to retire using that projection,...
by Admiral
Wed Sep 20, 2017 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Pimco Income Fund - What am I missing?
Replies: 17
Views: 2616

Re: Pimco Income Fund - What am I missing?

This thread is a year old, FYI.
by Admiral
Wed Sep 20, 2017 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Paying off primary mortgage
Replies: 24
Views: 1907

Re: Paying off primary mortgage

Ah... Franklin Templeton! I remember back in the day when my Morgan Stanley adviser sold me on their "outperforming" fund families. :oops:

I think they had both front and rear loads, plus the advertising fees.
by Admiral
Wed Sep 20, 2017 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income [Financial Independence]

OP here. It's interesting to see the various tangents this thread has taken. Just to harp yet again on why I posted HH income and target FI # rather than expenses: This forum is self selecting: you are here because you have an interest in finance and investing, and also an interest in keeping your e...
by Admiral
Tue Sep 19, 2017 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income [Financial Independence]

37!! Most people aren't even at their peak earning period at that age. Even 45 is VERY young to stop working. Clearly if you have the resources, that's great. But in all the stories I've read about this situation, one of the main problems these very young retirees encounter is that none of their fr...
by Admiral
Tue Sep 19, 2017 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income [Financial Independence]

37!! Most people aren't even at their peak earning period at that age. Even 45 is VERY young to stop working. Clearly if you have the resources, that's great. But in all the stories I've read about this situation, one of the main problems these very young retirees encounter is that none of their fr...
by Admiral
Tue Sep 19, 2017 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income [Financial Independence]

If you are saving half of 160k/yr that is 80k/yr. 4% of 2 million (if that is what you have saved up) is 80k/yr. So it looks like you could quit 160k/yr to live exactly like you do now, where you do now so that makes you FI. OK, maybe a couple more years to fund private medical insurance and other ...
by Admiral
Mon Sep 18, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

That is a fair point, as all the research I've seen on the 4% SWR have been modeled using historical US market. Having said that, Kitces states consistently (including in that interview), that no one should/would blindly follow the 4% rule without making adjustments along the way should one get hit...
by Admiral
Mon Sep 18, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

[EDIT TO ADD]: The 4% SWR has been backtested for rolling 30 year periods for the entire history of the stock market and shown to be, in general, quite safe, PROVIDED that it's used as a guide and not as a commandment. It needs to be adjusted to account for sequence of return risk, especially in th...
by Admiral
Mon Sep 18, 2017 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Nationwide 457 plan changes
Replies: 17
Views: 1210

Re: Nationwide 457 plan changes

I just looked at my statements online for the last 3 months. What I noticed now is they are taking the .08% each month. In the pass I believe this was hidden in the funds. Nationwide must of been getting a cut of the er fees. Now with all index funds and lots of Vanguard there is now room in the er...
by Admiral
Mon Sep 18, 2017 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Worth buying an excessive priced house?
Replies: 43
Views: 3856

Re: Worth buying an excessive house?

Not enough info on your financial picture to offer an informed opinion on the potential move, but: pools are a money pit. If you plan to heat it...even more so. I do agree with others that good schools should be a priority, so that is a factor, but I would tend to lean toward a smaller/more affordab...
by Admiral
Mon Sep 18, 2017 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Proceeds of Home Sale
Replies: 5
Views: 508

Re: Proceeds of Home Sale

Hello! I was hoping to get everyone's thoughts on $150k proceeds on a recent home sale. Our windfall will be used again in one year to purchase a new home in a different city. The prudent choice seems to invest the money into an online savings account (Ally at 1.2%). Are there any who might advise ...
by Admiral
Mon Sep 18, 2017 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

...I'm always skeptical of folks who espouse strategies that they design that will protect you or provide you with something "extra". Curiously enough, I don't see any disclosure on their website of how well those strategies worked out in 2008-2009 . (if you can find it and it meets/complies with G...
by Admiral
Sun Sep 17, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

This threads crack me up. You guys with deep six figure incomes and you are trying to figure out retirement and such. This forum is infuriating sometimes. If I made mid six figures I'd be retired in three years and on a hillside somewhere over looking nature enjoying the hell out of life. As a smal...
by Admiral
Sun Sep 17, 2017 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

Yep, it is all about expenses and almost nothing to do with family income. And I'll throw out another twist: I think in 2006 our investable assets were about 6X family income and we could have been considered financially independent (we know how to live well below our means). But 2008-2009 our inve...
by Admiral
Fri Sep 15, 2017 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Early mortgage payoff vs investing
Replies: 19
Views: 1574

Re: Early mortgage payoff vs investing

Welcome to the forum! First, get rid of the financial advisor, which is a guaranteed gain . :D Second, we need more info. Are you maxing all retirement/tax advantaged space? If you are not, then the answer is a no brainer: One should never pay off a 3.5% loan while missing out on potentially 25-39% ...
by Admiral
Fri Sep 15, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

Yep, it is all about expenses and almost nothing to do with family income. And I'll throw out another twist: I think in 2006 our investable assets were about 6X family income and we could have been considered financially independent (we know how to live well below our means). But 2008-2009 our inve...
by Admiral
Fri Sep 15, 2017 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

Yep, it is all about expenses and almost nothing to do with family income. And I'll throw out another twist: I think in 2006 our investable assets were about 6X family income and we could have been considered financially independent (we know how to live well below our means). But 2008-2009 our inve...
by Admiral
Fri Sep 15, 2017 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

What's included in your definition of income? See https://www.bogleheads.org/forum/viewtopic.php?t=156155 for Livesoft Adjusted Income, which includes things like employer 401k match, health insurance contributions, etc. Not adjusted gross. You and your partner's salaries, not including free money ...
by Admiral
Fri Sep 15, 2017 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Re: Let's talk about your FI # and family income

What's included in your definition of income? See https://www.bogleheads.org/forum/viewtopic.php?t=156155 for Livesoft Adjusted Income, which includes things like employer 401k match, health insurance contributions, etc. Not adjusted gross. You and your partner's salaries, not including free money ...
by Admiral
Fri Sep 15, 2017 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 165
Views: 14584

Let's talk about your FI # and family income [Financial Independence]

With all this talk (especially on this thread https://www.bogleheads.org/forum/viewtopic.php?f=1&t=227667) about multiples of income/expenses needed for financial independence/retirement, it might be interesting to see the various views on how much is "enough" based on current household income (gros...
by Admiral
Fri Sep 15, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 6047

Re: Have X times your salary saved by age Y.

I disagreed. It is very easy to calculate your current annual expense. Your current annual expense = gross income - tax (Federal + State + FICA + Medicare) - savings You can find your gross income and tax from your tax filing. You can find your savings from your contribution number. KlangFool I dis...
by Admiral
Fri Sep 15, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 6047

Re: Have X times your salary saved by age Y.

I think rules of thumb are very useful if you realize that they really are just rules of thumb. And I think it is foolish to try to refine the precision of any rule of thumb... Excellent observation. Let's do a round number example and see what we have. Fred is 60 and earns $100k, up from $98k last...
by Admiral
Fri Sep 15, 2017 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 6047

Re: Have X times your salary saved by age Y.

I think rules of thumb are very useful if you realize that they really are just rules of thumb. And I think it is foolish to try to refine the precision of any rule of thumb. The amount you will actually be able to save by age 65--taking into account the stock market, career, possible wife, possibl...
by Admiral
Fri Sep 15, 2017 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 6047

Re: Have X times your salary saved by age Y.

A multiple of income is meaningless. Lots of people spend more than they make. That's why the entire country is mired in credit card debt and has almost no savings. It's not that difficult. Just chart out your expected expenses at retirement and multiply that by number of years you expect to be reti...
by Admiral
Thu Sep 14, 2017 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Retirees-anyone miscalculate how much was needed?
Replies: 71
Views: 8698

Re: Retirees-anyone miscalculate how much was needed?

To get back on topic a little: I am not retired, but I will say this: We are saving and investing with the expectation (goal?) that we can spend as much if not more than we are spending now. Now, the reason why we will hopefully be able to do this is that our mortgage will be paid off, our kids will...
by Admiral
Wed Sep 13, 2017 12:08 pm
Forum: Personal Consumer Issues
Topic: Is it really Worth it to brown bag your lunch at work?
Replies: 313
Views: 17340

Re: Is it really Worth it to brown bag your lunch at work?

I love to cook and lunch is easy when there are leftovers, which there usually are. Unless it was for a meeting, I have not eaten out for lunch in 10 years (except when I forgot to bring my lunch bag). I mainly do it because I'd rather spend that hour outside walking, or at the gym. We eat healthy d...
by Admiral
Wed Sep 13, 2017 11:47 am
Forum: Personal Consumer Issues
Topic: Best Lower Cost USA Cities to Live
Replies: 102
Views: 7126

Re: Best Lower Cost USA Cities to Live

I'm looking for a wide variety of opinions. That's why I wasn't specific. I am also aware that I can google it or use citydata forums but I respect Boglehead opinions. Unfortunately, some of these hidden gem cities have become very popular through word of mouth and are no longer what they used to b...
by Admiral
Wed Sep 13, 2017 11:30 am
Forum: Personal Consumer Issues
Topic: Best Lower Cost USA Cities to Live
Replies: 102
Views: 7126

Re: Best Lower Cost USA Cities to Live

I really don't understand these threads, of which there have been dozens. What is "best"? How can one just choose a city to live in from posting on a message board? If you're working, don't you need to secure a job before you move? Or at least understand the local economy and the jobs and housing av...
by Admiral
Tue Sep 12, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: When calculating net worth, how do you value your house?
Replies: 167
Views: 8396

Re: When calculating net worth, how do you value your house?

How is owning a house any different than owning any other real estate...which we DO consider when we calculate our assets and net worth. The house is simply an improvement to the raw land, adding to its value, up to the market price. If I bought a 2 acre parcel of lakefront property for $10 and now ...
by Admiral
Tue Sep 12, 2017 9:24 am
Forum: Personal Finance (Not Investing)
Topic: When calculating net worth, how do you value your house?
Replies: 167
Views: 8396

Re: When calculating net worth, how do you value your house?

If you don't think your home should be valued as an asset that can be exchanged for currency, I suggest calling your insurance company and telling them you want to cancel your policy. Or do the same thing with your mortgage co. I think they'd give you an argument. :wink:
by Admiral
Mon Sep 11, 2017 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Variable Percentage Withdrawal -> Before retirement Age
Replies: 35
Views: 3041

Re: Variable Percentage Withdrawal -> Before retirement Age

What I did was simply extend the end date out from Age 95 to Age 115. I used the 1966 backtesting year (one of the worst years to retire into) to get an idea --- not a projection--of what my ending PF balance could look like at age 95. I was satisfied with that idea . My intention is to monitor the...
by Admiral
Mon Sep 11, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Variable Percentage Withdrawal -> Before retirement Age
Replies: 35
Views: 3041

Re: Variable Percentage Withdrawal -> Before retirement Age

KlangFool, Let's assume the portfolio is 1.5 million and the full retirement age for social security is 67 years old. A) The annual expense is 60K B) And, the social security income with a couple = 30K at 67 years old. This couple retires at 57 years old. My understanding is (10 years X 60K = ) 600...
by Admiral
Mon Sep 11, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: When calculating net worth, how do you value your house?
Replies: 167
Views: 8396

Re: When calculating net worth, how do you value your house?

Just because something is not immediately liquid doesn't mean it has no value. That's why we have markets (stock, real estate, autos): to tell us what things should be worth at any given moment. If you would not use your home equity ( estimated value - mortgage balance) in your net worth calculation...
by Admiral
Mon Sep 11, 2017 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Financial Independence Mindset
Replies: 83
Views: 6438

Re: Financial Independence Mindset

Lotta troll feeding on this thread... To OP: You should not need FI to travel for an extended period. I did it while self employed, since I was able to work remotely. What you DO need is flexibility in your work. The first step, obviously, is to determine how much money you would spend on your trave...
by Admiral
Sun Sep 10, 2017 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Nationwide 457 plan changes
Replies: 17
Views: 1210

Re: Nationwide 457 plan changes

Thats 2 good things about California. Low er and great weather. If only they can do something with the taxes? Unfortunately, the great weather only applies to some parts of the state, which also happen to be the expensive parts of the state. I'd love to retire to a sleepy ranch property on the cent...