Search found 424 matches

by Bill M
Thu Feb 04, 2016 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension buyout today...
Replies: 50
Views: 4947

Re: My Megacorp offered a pension buyout today...

As I recall the 417E stuff is based on monthly pension payments starting at age 65, which it then converts to a lump sum value at age 65, and then discounts for those years between not and your age 65. So if you were 65, the difference between the lump sum amount and the immediateannuity.com SPIA pr...
by Bill M
Mon Jan 25, 2016 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Logistics of puchasing TIPS ladder at auction for a retirement income floor
Replies: 32
Views: 2135

Re: Logistics of puchasing TIPS ladder at auction for a retirement income floor

RefCPI is probably explained in the TIPS book, but I haven't seen the book. In case it isn't in the book.... The par value of a TIPS bond increases with inflation, as measured by the Consumer Price Index (CPI-U). Values of CPI-U are published monthly by the Bureau of Labor Statistics, and available ...
by Bill M
Mon Jan 25, 2016 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Logistics of puchasing TIPS ladder at auction for a retirement income floor
Replies: 32
Views: 2135

Re: Logistics of puchasing TIPS ladder at auction for a retirement income floor

The only troublesome part I see is the SPIA purchase in 2049. You know the "real" income desired, but not the cost of the SPIA. The income generated will depend on interest rates in 2049, which are hard to predict. You might look into buying the SPIA now, with CPI-based inflation adjustme...
by Bill M
Sun Jan 24, 2016 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Logistics of puchasing TIPS ladder at auction for a retirement income floor
Replies: 32
Views: 2135

Re: Logistics of puchasing TIPS ladder at auction for a retirement income floor

Buying the TIPS at auction, and holding them until maturity (matching the year you need the floor) is a good plan. One part that might simplify the calculating is to use a multiple of the current CPI figure for the par amount to buy. So if the ref-CPI for the TIPS auction is 237.61129 (like for the ...
by Bill M
Wed Jan 06, 2016 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Incorporating your home into networth calculation
Replies: 100
Views: 4212

Re: Incorporating your home into networth calculation

My question is do people incorporate their home into their net worth in anyway?....and if so how? It is clear that your home is an asset. And it is clear that net worth is assets less liabilities. So it should be. But...some of those assets can easily be valued, and some can't. Things that can be e...
by Bill M
Tue Dec 22, 2015 9:30 am
Forum: Personal Finance (Not Investing)
Topic: 2015 Tax Prelim Planning: Comments??
Replies: 18
Views: 1381

Re: 2015 Tax Prelim Planning: Comments??

I think the "preliminary" tax calculations are essential. In my case, I want to fill the xx% marginal tax bracket with Roth conversions, and that means essentially filling in (draft) 2015 forms this month and calculating exact amount of tax due. It also means deciding early whether to acce...
by Bill M
Mon Dec 07, 2015 7:36 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: What's the goal?
Replies: 47
Views: 3471

Re: Delaying Social Security: What's the goal?

If the goal is to maximize Social Security benefits received, you get one optimal strategy. (This is usually the only answer given by the various online calculators). If the goal is maximize the estate (net worth at end of life) you get a different answer. If the goal is to minimize income taxes pai...
by Bill M
Wed Nov 18, 2015 12:36 pm
Forum: Investing - Theory, News & General
Topic: Most important financial metric/calculation?
Replies: 39
Views: 3549

Re: Most important financial metric/calculation?

If you project income (including salary, Social Security, pensions, annuities, interest/dividends, and capital gains) and expenses (including medical expenses and taxes) forward, starting with current account balances and adding income each year and subtracting expenses each year, ... And then pick ...
by Bill M
Wed Nov 18, 2015 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: per stirpes--IRA beneficiaries
Replies: 15
Views: 1477

Re: per stirpes--IRA beneficiaries

I suggest avoiding per stirpes. Put in real names for the beneficiaries, and keep it updated (check it at least yearly). Its not hard. Most Bogleheads are DIY'ers, and are concerned about costs. The "per stirpes" means the IRA can't be handled in the estate without a lawyer and probate cou...
by Bill M
Tue Oct 27, 2015 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Consolidated 2016 Medicare Part B Increase thread
Replies: 111
Views: 3019

Re: Medicare increase fixed?

It looks like it also did away with "file&suspend" and with "restricted application".
We'll have to wait and see what really happens.
by Bill M
Thu Oct 08, 2015 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Joint Finances as a newlywed couple?
Replies: 29
Views: 2192

Re: Joint Finances as a newlywed couple?

We started out with separate accounts (~40 years ago, so memory is somewhat fuzzy), and did careful accounting of utilities (split 50/50), mortgage (split 50/50), credit card bills (split based on who bought what, and food etc 50/50), gas/fuel charges (split based on who drove and how much), etc. It...
by Bill M
Fri Oct 02, 2015 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Document retention: what are bare minimums?
Replies: 9
Views: 1099

Re: Document retention: what are bare minimums?

For the bare minimum, retention for tax forms is 3 years from the time you filed the return. Lots of special cases for longer, but you said to ignore the less likely scenarios. See http://www.irs.gov/taxtopics/tc305.html
For medical history, I tend to keep medical bills longer.
by Bill M
Mon Sep 21, 2015 12:40 pm
Forum: Investing - Theory, News & General
Topic: LMP (Liability Matching Portfolio) and TIPS/Strips/CD's
Replies: 4
Views: 492

Re: LMP (Liability Matching Portfolio) and TIPS/Strips/CD's

I have my LMP in 10-yr TIPS, split into 20 more-or-less equal portions in each of the 20 separate issues of 10-yr TIPS. So I'll have something maturing every 6 months to cover any unexpected expenses (life roof repairs, new A/C, etc). TIPS vs something else??? If I wanted to worry about the LMP keep...
by Bill M
Thu Sep 10, 2015 11:42 am
Forum: Personal Finance (Not Investing)
Topic: How much do kids pay for their own activities...
Replies: 21
Views: 2250

Re: How much do kids pay for their own activities...

We paid completely for everything we thought was worthwhile. The kids paid for everything they thought was worthwhile that we didn't think was worthwhile. Then there was a third category....I can only think of two items: video games and (upgrade to professional grade) musical instruments. If it pass...
by Bill M
Tue Sep 08, 2015 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Post your current employer retirement plan! (if any)
Replies: 94
Views: 8737

Re: Post your current employer retirement plan! (if any)

At MegaCo where I worked until two years ago, there were two plans: Pension plan: in its simplest form, work for the company 30 years and retire at 50% of final pay. There were lots of complexities for working less than 30 years (or more than 30), and collecting payments prior to age 65, but the sim...
by Bill M
Sun Aug 30, 2015 7:03 am
Forum: Personal Finance (Not Investing)
Topic: Budgeting infrequent expenses (refrigerator, new tires, paint house, etc)
Replies: 27
Views: 2617

Re: Budgeting infrequent expenses (refrigerator, new tires, paint house, etc)

I started a thread on this subject a few months ago; it generated a lot of interesting discussion. http://www.bogleheads.org/forum/viewtopic.php?f=2&t=162736 The planning process has to include the big occasional spending items to make sure enough is saved. But I never appreciated how much it th...
by Bill M
Wed Aug 05, 2015 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: strategy to convert traditional ira to roth
Replies: 6
Views: 525

Re: strategy to convert traditional ira to roth

Once you are 70 (collecting SocSec) and the RMDs start, what will be your tax rate? If the RMD will be taxed at 15%, then there is no advantage to converting earlier to Roth. But if the RMD will be taxed at 25%, that amount could be converted to Roth pre-70 and still pay the same 25% in taxes. This ...
by Bill M
Tue Jul 28, 2015 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Do I need Umbrella Insurance if my Assets < Liability Limits?
Replies: 14
Views: 1461

Re: Do I need Umbrella Insurance if my Assets < Liability Limits?

State laws differ as to whether future earnings can be included in a lawsuit settlement. Something to check....
by Bill M
Tue Jul 28, 2015 6:44 am
Forum: Personal Finance (Not Investing)
Topic: Geico Auto Insurance
Replies: 63
Views: 4280

Re: Geico Auto Insurance

We got hit recently by a driver insured by Geico; 100% his fault. So we had a choice of getting the claim processed by Geico or by Allstate. Geico required us to get the car to one of their repair facilities for an estimate. Closest was about 10 miles; car was totaled and could limp maybe one mile o...
by Bill M
Sun Jul 26, 2015 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: How much does Property Tax factor in home purchase?
Replies: 36
Views: 2921

Re: How much does Property Tax factor in home purchase?

Your state rules may be different, but in New Jersey the biggest portion of property taxes goes to the schools. High property taxes go along with good schools. If you want good schools, they you also want high property taxes.
by Bill M
Fri Jul 17, 2015 9:30 pm
Forum: Investing - Theory, News & General
Topic: Pros and cons of adding Roth Option to 401K Plan
Replies: 103
Views: 6590

Re: Pros and cons of adding Roth Option to 401K Plan

I don't know if it is advantageous to the plan to keep retired employees.... But if it is, a Roth option is definitely worthwhile. Otherwise us retired folk are forced to rollover the 401k money into an IRA before converting to Roth, and that means reducing the amount invested in the company-sponso...
by Bill M
Fri Jul 17, 2015 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: 60K Car Maintenance Service = $600. Is this Reasonable?
Replies: 51
Views: 4748

Re: 60K Car Maintenance Service = $600. Is this Reasonable?

I look at the list of services done as part of the 60K checkup ($600), and compare it to the list of items done by my local Midas shop with every oil change ($30). Looks like Midas + change spark plugs (~$100) (and there is some doubt whether plugs need to be changed prior to 100K miles).
by Bill M
Fri Jul 17, 2015 3:11 pm
Forum: Investing - Theory, News & General
Topic: Pros and cons of adding Roth Option to 401K Plan
Replies: 103
Views: 6590

Re: Pros and cons of adding Roth Option to 401K Plan

I don't know if it is advantageous to the plan to keep retired employees.... But if it is, a Roth option is definitely worthwhile. Otherwise us retired folk are forced to rollover the 401k money into an IRA before converting to Roth, and that means reducing the amount invested in the company-sponsor...
by Bill M
Fri Jul 17, 2015 7:13 am
Forum: Personal Finance (Not Investing)
Topic: Convert IRA to Roth While Working to Save on Taxes
Replies: 15
Views: 1227

Re: Convert IRA to Roth While Working to Save on Taxes

Your strategy is sound. There is no substitute for doing the calculations in advance (even if based on assumption that rates won't change). I encountered a situation a few years ago (due to timing of bonus payments) where I was just over the AMT exemption phaseout point, so had a wide plateau with a...
by Bill M
Fri Jul 17, 2015 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Turning 65, need Medicare, but delaying Social Security
Replies: 20
Views: 1862

Re: Turning 65, need Medicare, but delaying Social Security

I'm still a few years from 65, but have similar plans. The information packet I received when retiring two years ago said to call Medicare (800-633-4227) three months before turning 65. That may not still be right, but it seems a good first step. MegaCo also said to expect some confusion about payin...
by Bill M
Mon Jun 29, 2015 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Lucent offering pension buyout to retirees: what to do?
Replies: 88
Views: 18289

Re: Lucent offering pension buyout to retirees: what to do?

The devil is in the details.

But in general, the biggest risk is living a long time. The annuity is a clear winner, but you have to balance that against the risk of insurance company going bust.
by Bill M
Mon Jun 29, 2015 9:33 am
Forum: Personal Finance (Not Investing)
Topic: What's your net worth break down? What's ideal?
Replies: 44
Views: 7085

Re: What's your net worth break down? What's ideal?

Breakdown depends a lot on employer benefit provisions (like whether after-tax 401a contributions are allowed). That qualification being added, my breakdown is: 47% pre-tax retirement accounts (401k, 403b, tIRA) 17% Roth retirement accounts (Roth-401k, Roth-IRA) 36% taxable investments (Home equity ...
by Bill M
Sun Jun 28, 2015 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: Drawing from Retirement Savings to Delay SS
Replies: 43
Views: 4696

Re: Drawing from Retirement Savings to Delay SS

1. planning to deplete about 15% covering 8 years (but that includes the additional taxes due to Roth conversions)
2. currently delaying
3. portfolio performance will not impact the plan
4. pre-70 portion is isolated in TIPS, CDs, and a StableValue fund
by Bill M
Thu Jun 25, 2015 6:31 am
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 278
Views: 30026

Re: What ratio are you stocks/bonds and how old are you?

We're both 63. We have a bond ladder that will provide 40 years of income. The remainder is 75% stocks. So overall we're 28% stocks.
by Bill M
Wed Jun 24, 2015 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: What credit should you get? (Ask me anything)
Replies: 52
Views: 19374

Re: What credit should you get? (Ask me anything)

I've been rotating through several cards for the past few years; all the cards are free for the first year and charge an annual fee for second and later years, so I close them after 9-10 months and open a new one. Main point of this game is the bonus airline miles with the new card. Is the ease of d...
by Bill M
Fri Jun 12, 2015 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Metrics for choosing when to claim Social Security benefits
Replies: 10
Views: 1920

Re: Metrics for choosing when to claim Social Security benefits

I certainly agree that picking the right metric is the most critical part of the decision. If you pick a metric like "most SocSec benefits over my lifetime", there are numerous products and organizations that would love to have your business and tell you the answer. If you do a more detail...
by Bill M
Thu Jun 11, 2015 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Individual bonds in IRA of deceased
Replies: 4
Views: 472

Re: Individual bonds in IRA of deceased

Its certainly not a problem for the beneficiaries; they just inherit an IRA with something in it, and the custodian figures out the annual RMD. But it is a (slight) problem for the executor. He/she has to place a value on the individual bonds (based on market value on date of death, unfortunately no...
by Bill M
Thu Jun 11, 2015 6:34 am
Forum: Personal Finance (Not Investing)
Topic: Inflation indexed SPIA providers
Replies: 15
Views: 1803

Re: Inflation indexed SPIA providers

If I've done the math correctly (for a 48 year old male), an inflation indexed SPIA from AIG initially has 65% of the payout of a non-inflation indexed SPIA. I would think a better way to compare them .... Another way to do the comparison (my preference) is to calculate the inflation rate that, whe...
by Bill M
Wed Jun 10, 2015 10:30 am
Forum: Personal Finance (Not Investing)
Topic: HSA reimbursements - to take now or wait?
Replies: 13
Views: 1426

Re: HSA reimbursements - to take now or wait?

we always wait, regardless of the amount. All the HSA-eligible expenses are in a spreadsheet, so easy to maintain and track how far over/under the HSA balance we are. But we consider the HSA to be a "super-Roth", and would empty the regular Roth first.
by Bill M
Wed Jun 10, 2015 7:17 am
Forum: Personal Finance (Not Investing)
Topic: What Percent Of Your Annual Expenses Are Property Taxes?
Replies: 101
Views: 7414

Re: What Percent Of Your Annual Expenses Are Property Taxes?

20-25% of annual expenses are property taxes. One home in NJ.

Annual expenses vary from year to year; property taxes are relatively fixed. So the percentage changes.
by Bill M
Wed Jun 10, 2015 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Inflation indexed SPIA providers
Replies: 15
Views: 1803

Re: Inflation indexed SPIA providers

I have quotes for an inflation-indexed SPIA from MetLife back in 2010, but nothing recent. Lincoln Financial Group offered their SmartIncome annuity with CPI-adjustments, but they've gone quiet and updates stopped in 6/2014. Both PFG and AIG offer quotes through Vanguard (chasing the web links to Hu...
by Bill M
Tue May 19, 2015 6:56 am
Forum: Personal Finance (Not Investing)
Topic: How do Bogleheads (in general) plan to finance their healthcare for later life?
Replies: 34
Views: 4180

Re: How do Bogleheads (in general) plan to finance their healthcare for later life?

Getting the HSA over $300K before 65 is tough. At $7K/yr, it just doesn't accumulate fast enough, and once you're 65 you can't add any more to it. So I figure the HSA is one small part of funding healthcare, with sizable balances in other accounts dedicated for healthcare too.
by Bill M
Mon May 18, 2015 8:31 am
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 14075

Re: How much does social security factor into your retirement income?

Retired two years ago, but delaying SocSec for another ~8 years. No doubt the amount will be a significant percentage of our total income, but there are so many assumptions built into the exact amount of that calculation... For planning purposes, I assume (1) cut 10% off the initial benefit that Soc...
by Bill M
Wed Apr 15, 2015 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Poll: Effective average Adjusted Livesoft tax rate?
Replies: 67
Views: 6233

Re: Poll: Effective average Adjusted Livesoft tax rate?

I understand what you are trying to calculate with the ALI; my in-plan Roth conversion in my 401k distorts the values, since 16a and 16b report the gross and taxable amount of the conversion (neither was spendable income). So I adjusted the ALI before responding. It made the effective tax rate 26.7%...
by Bill M
Wed Apr 15, 2015 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: How Many Credit Cards Do You Have Open?
Replies: 25
Views: 25241

Re: How Many Credit Cards Do You Have Open?

One for everyday use. One backup for the times that one gets hacked/stolen/etc. One separate one for everything on the web, which frequently gets hacked/stolen/etc (usually once/year, typically through PayPal). And one just to collect the airline miles signup bonus (charged their min amount to get t...
by Bill M
Wed Apr 15, 2015 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Can nursing homes evict Medicaid patients?
Replies: 19
Views: 2895

Re: Can nursing homes evict Medicaid patients?

Some experience with this with my grandmother in the 1980s and 1990s. When she first entered the nursing home, there was a financial qualification test she needed to pass, i.e. sufficient assets to pay for some number of years of care. And there were restrictions on wealth transfer (no surprise). Ni...
by Bill M
Wed Apr 15, 2015 7:39 am
Forum: Personal Finance (Not Investing)
Topic: How do you value a pension?
Replies: 18
Views: 1963

Re: How do you valuate a pension?

The value certainly depends on the reason you are determining the value. For job comparison, I'd ignore the pension until it becomes a "golden handcuff" (I'd place this somewhere around 25 years of service to a company). Recognize that the pension formula is inherently non-linear; negligib...
by Bill M
Mon Apr 13, 2015 10:24 am
Forum: Investing - Theory, News & General
Topic: Record keeping with Excel
Replies: 19
Views: 1789

Re: Record keeping with Excel

Excel is a very powerful tool. Start by creating a workbook with investment account values; but you can do so much more. Add summary pages (aka net worth) with the quarterly (or monthly) figures, and add a graph of them over time. For taxable accounts, also record purchase dates and basis values; yo...
by Bill M
Thu Apr 09, 2015 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: 401k failed non-discrimination test - already rolled over
Replies: 5
Views: 843

Re: 401k failed non-discrimination test - already rolled ove

Its their problem, not yours. But if they send you a refund check, I'd sit on it for a while before cashing it, expecting them to demand its return.
by Bill M
Thu Apr 09, 2015 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Named Beneficiary for IRA and other property vs. will/trust
Replies: 6
Views: 782

Re: Named Beneficiary for IRA and other property vs. will/tr

If the beneficiary is a named person, there is no need for probate. If the beneficiary is "the person I am married to at the time of my death" then the executor of the estate will have to tell Vanguard who that person is. So someone will still need to file the will with the Probate Court, ...
by Bill M
Tue Apr 07, 2015 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefit Question
Replies: 4
Views: 658

Re: Social Security Spousal Benefit Question

My wife and I are in same situation, and I plan to do the file&suspend so she can get the spousal benefit. I have one of those nit-picking detail questions that I can't seem to find an answer: Do I start the file&suspend paperwork a few months prior to my 66th birthday (and hope that they do...
by Bill M
Tue Apr 07, 2015 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Taxes
Replies: 6
Views: 719

Re: Roth Conversion and Taxes

You made two non-deductible contributions in 2014, each $5500, one for 2013 and one for 2014; total basis is $11,000. Of that, $5500 was converted to Roth in 2014, and $5500 was left in tIRA. So on form 8606, Line 1: 11000 Line 2: 0 Line 3: 11000 Line 5: 11000 Line 6: 5500 Line 8: 5500 Line 9: 11000...
by Bill M
Tue Apr 07, 2015 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Taxes
Replies: 10
Views: 786

Re: Roth Conversion and Taxes

At $80.8K you're nearly at the top of the 15% marginal tax bracket; the Roth conversion put you well into the 25% marginal bracket. Plugging your numbers into my tax program (assuming MFJ, 2 exemptions) I figure the first $1,200 of Roth conversion topped off the 15% bracket. Is a Roth conversion at ...
by Bill M
Tue Apr 07, 2015 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Lump sum pension vs future annuity
Replies: 7
Views: 1188

Re: Lump sum pension vs future annuity

What is the present value, at age 31, of an annual annuity of $1 starting at age 65? My actuarial spreadsheet says $5.047, based on the 2008 GAAT mortality table and 3% interest rate. So for your $1112/mo that comes to $67,355. Alternatively, what would an insurance company charge to provide such a ...

Go to advanced search