Search found 1549 matches

by Frugal Al
Fri Feb 12, 2016 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: SPIA/social security scenarios
Replies: 6
Views: 518

Re: SPIA/social security scenarios

Although I agree with vested's position about optimizing the SPIA's, I'm not concerned about not optimizing them since there's no legacy intent. Also, by maximizing your SS and having a significant portfolio remaining, managing inflation shoudn't be a big concern. There is a lot of info we don't hav...
by Frugal Al
Thu Feb 04, 2016 7:43 am
Forum: Investing - Help with Personal Investments
Topic: Newbie, stuck in life insurance policy.
Replies: 18
Views: 1329

Re: Newbie, stuck in life insurance policy.

I know this forum does not like life insurance policy questions, but we are really confused about it and don't to where to go. There is no problem with life insurance policy questions on this forum; everyone here is glad to help. The cautionary advice with regard to life insurance threads is that s...
by Frugal Al
Sun Jan 31, 2016 8:35 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 1438
Views: 275826

Re: What Movie Have You Recently Watched?

I also enjoyed Ex Machina more than my wife. I don't think she appreciated me finding the humanoid attractive.:D
Also watched Big Eyes recently. A very different film for Tim Burton. As usual, Amy Adams was great. I'd give it a solid B. No special effects here, just a fascinating drama.
by Frugal Al
Wed Jan 27, 2016 4:18 am
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 814

Re: Decreasing term life insurance linked to inflation?

Why would that be true? The company takes a fixed premium, to pay a fixed death benefit, and invests any early "over-payments" in fixed bonds. I don't see how inflation helps the company. Although life insurance companies practice a form of liability matching, it is imperfect due to the d...
by Frugal Al
Tue Jan 26, 2016 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 814

Re: Decreasing term life insurance linked to inflation?

My Amica term life policy benefit is inflation adjusted. This policy has a fixed premium for the term of the policy. I did not pay extra for this. In fact, this policy was the lowest cost one I found from a decent credit rated insurer. You can call Amica at 800-234-5433 Interesting, EHE. How long i...
by Frugal Al
Tue Jan 26, 2016 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 814

Re: Decreasing term life insurance linked to inflation?

MHC makes a good point: there are other ways to achieve your goal, at least somewhat. As to the reason there aren't polices designed with the attributes you seek, I suspect the chief reason is that inflation has a beneficial economic influence to the insurance company for most (virtually all) of the...
by Frugal Al
Sun Jan 17, 2016 6:30 am
Forum: Investing - Theory, News & General
Topic: I'm sitting here watching FOX Business...14200??
Replies: 92
Views: 7583

Re: I'm sitting here watching FOX Business...14200??

Watching Fox for any kind of "news" is not a good idea. Why is that Freddie? All broadcast and cable news is biased and sensationalistic today. I haven't found one news organization that doesn't color their reporting in one way or another. I certainly wouldn't change my portfolio around b...
by Frugal Al
Fri Jan 15, 2016 11:24 am
Forum: Personal Consumer Issues
Topic: Powerball math: annuity is better?
Replies: 56
Views: 4988

Re: Powerball math: annuity is better?

Powerball has 30 annual payments, first payment immediate, which do NOT end at death.
by Frugal Al
Thu Dec 31, 2015 5:57 am
Forum: Personal Finance (Not Investing)
Topic: Permanent Life Insurance- Northwestern Mutal
Replies: 42
Views: 2445

Re: Permanent Life Insurance- Northwestern Mutal

Good advice from Ole Meph, Emergedoc, et al. In fairness to the CFP, I'd be curious if the OP indicated an extreme aversion to risk, and/or a need/desire to have permanent insurance. Too many financial professionals take the easy route if it presents itself, even if it's not optimal for the client. ...
by Frugal Al
Thu Dec 31, 2015 4:45 am
Forum: Personal Finance (Not Investing)
Topic: New YNAB Available - Now with Auto-Import
Replies: 22
Views: 3212

Re: New YNAB Available - Now with Auto-Import

The one major downside is that it's now a service model with an ongoing subscription @ $5/month or $50 / year. Wow, and some here complained about Quicken needing renewed every 3 years, for a lot less than $150. Although YNAB is probably a better app for just budgeting (I haven't used it as I've be...
by Frugal Al
Wed Dec 30, 2015 2:06 pm
Forum: Investing - Theory, News & General
Topic: How much inflation in the US per year?
Replies: 56
Views: 3933

Re: How much inflation in the US per year?

Too funny, Epsilon Delta. I just blew coffee out my nose.
by Frugal Al
Wed Dec 30, 2015 1:21 pm
Forum: Personal Consumer Issues
Topic: Turn off water heater on vacation?
Replies: 66
Views: 5752

Re: Turn off water heater on vacation?

duplicate
by Frugal Al
Wed Dec 30, 2015 1:18 pm
Forum: Personal Consumer Issues
Topic: Turn off water heater on vacation?
Replies: 66
Views: 5752

Re: Turn off water heater on vacation?

I think water heater warranties conform more closely to effective life than, say, a typical computer warranty. Mostly because the of the larger sacrificial anode(s) that is included with the longer warranty. Other than that the construction and parts are basically the same, with relatively minor de...
by Frugal Al
Wed Dec 30, 2015 5:36 am
Forum: Personal Consumer Issues
Topic: Turn off water heater on vacation?
Replies: 66
Views: 5752

Re: Turn off water heater on vacation?

If you factor in installation costs, buying a heater with a shorter warranty (expected life) is a false economy, IMO. Since when does warranty equal expected life? Most products last past their warranty--even hot water tanks. Once again, all the longer warranty really gets you with a hot water tank...
by Frugal Al
Tue Dec 29, 2015 9:29 am
Forum: Personal Consumer Issues
Topic: Turn off water heater on vacation?
Replies: 66
Views: 5752

Re: Turn off water heater on vacation?

My best practices: Buy a water heater with the longest possible warranty. My last one was 12 years. It failed after 10, and Home Depot gave me a new one with another 12-year warranty. (!) Although your water heater "best practices" has some good points, your reliance upon long warranties ...
by Frugal Al
Thu Dec 17, 2015 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: W4 Allowance question
Replies: 10
Views: 681

Re: W4 Allowance question

I'm assuming she's claiming 1 or 2 since we've never considered changing it The withholding information is often found on the pay stub. If not, inquire with payroll. Check the withheld amounts against the information in Pub 15 to assure accuracy and understanding of how the withheld amount is calcu...
by Frugal Al
Thu Dec 17, 2015 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Should I cash out my whole life policy?
Replies: 81
Views: 5209

Re: Should I cash out my whole life policy?

JSDNJ wrote:Can anyone tell me based on the images of my in force illustration approximately what type of return I am expecting?

I believe I did.
by Frugal Al
Thu Dec 17, 2015 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: W4 Allowance question
Replies: 10
Views: 681

Re: W4 Allowance question

I've always referred to IRS Publication 15 and used the wage bracket method to calculate the number of withholding allowances needed to achieve the desired withheld amount.
by Frugal Al
Sat Dec 12, 2015 11:15 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau on Reverse Mortgages
Replies: 41
Views: 3957

Re: Wade Pfau on Reverse Mortgages

Tonen wrote:Is it Government guarenteed? Otherwise, what are the odds of a Line of Credit provider figuring out some clever way of walking away from the deal (eg spinoff to a subsiduary that then becomes insolvent) if lines of credit end up being worth more than the houses?

Yes, HECM's are insured by the FHA.
by Frugal Al
Wed Dec 09, 2015 2:29 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau on Reverse Mortgages
Replies: 41
Views: 3957

Re: Wade Pfau on Reverse Mortgages

Given that the sequence of returns risk is one of the biggest threats to retirement portfolio draw down, retaining a RM and using last would seem to greatly mitigate that risk, with the increasing LOC being icing on the cake. As dodecahedron points out, it's a put with a growing strike price. I like...
by Frugal Al
Tue Dec 08, 2015 12:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 776
Views: 108355

Re: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]

I generally don't believe in coincidence, and it's not surprising that Vanguard would be a big target among financial companies. Still, I had no idea just how much of an impact they are now having. http://www.investmentnews.com/article/20151201/FREE/151209995/how-vanguard-pulls-billions-from-wall-st...
by Frugal Al
Mon Dec 07, 2015 10:33 am
Forum: Personal Consumer Issues
Topic: Best watch for around $5,000?
Replies: 950
Views: 202631

Re: Best watch for around $5,000?

I have a friend who has a fake Rolex. You can tell the difference just by looking at the movement of the second hand. It really depends upon the year and model of the Rolex and the quality of the movement of its fake counterpart. The better knock-offs will use a movement that is running at 28,800 b...
by Frugal Al
Wed Nov 25, 2015 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Rich Dad's Latest (Non Boglehead) Advice
Replies: 25
Views: 5393

Re: "The White Coat Investor"

What's he's really saying is, "Buy my book!" I doubt Taylor will read this one. Emergdoc: You're right. If I want to read real " Investment Gems ," they are in this book: The White Coat Investor Best wishes. Taylor How kind. Taylor, you exude all that is good. Thanks for all you...
by Frugal Al
Tue Nov 24, 2015 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Lump Sum or Annuity
Replies: 18
Views: 1435

Re: Lump Sum or Annuity

I believe you've got things backward, Al. A 100% joint life annuity will have a higher, not lower return than a single life annuity of the same amount. Yes, Cruncher, I said it backwards. I should have written "making me wonder if the payout is for single life." We should compare the 100%...
by Frugal Al
Tue Nov 24, 2015 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Lump Sum or Annuity
Replies: 18
Views: 1435

Re: Lump Sum or Annuity

Right, So they are discounting at 4-5%. And long term treasury rates are in the 2-3% range. So one is getting ripped off. Unless one has a really large pension that is above the pbgc limits. While I agree it was more beneficial back when pension lump sums were tied to treasury rates, I'd hardly say...
by Frugal Al
Mon Nov 23, 2015 8:26 am
Forum: Investing - Theory, News & General
Topic: 70 is the New 65
Replies: 106
Views: 12567

Re: 70 is the New 65

Actually, we are not really living much longer than previous generations if you measure life-expectancy at age 65. http://www.huffingtonpost.com/howard-s-friedman-phd/were-not-really-living-mu_b_852940.html Who to believe? Let's see, a 2011 article in the Huff Post or the new (in draft form) RP-201...
by Frugal Al
Thu Nov 19, 2015 9:21 am
Forum: Personal Consumer Issues
Topic: Are Subarus reliable?
Replies: 81
Views: 5615

Re: Are Subarus reliable?

That's certainly not been my experience. I bought my Outback in 2013, and have driven it through two winters so far. Without snow tires, it is far better than any FWD vehicle I've ever driven with snow tires. (Agree with DDMP) Although you've had a good experience with your AWD vehicle with what I ...
by Frugal Al
Thu Nov 19, 2015 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Pension, take the lump sum or annual payments
Replies: 5
Views: 757

Re: Pension, take the lump sum or annual payments

The growth on the pension isn't very impressive, but that's not the real issue with the plan. The real issue is you really can't afford to FIRE yourself yet. Age 40 is really early (OP is now age 37). What's the rush? You're accumulating well, and your expenses are low. As you point out, you have no...
by Frugal Al
Wed Nov 18, 2015 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Do you believe that Social Security [is actuarially neutral]
Replies: 130
Views: 12558

Re: Do you believe that Social Security [is actuarially neutral]

Leeraar is correct. For it to be actuarially neutral, the benefit increase per month should GROW as you get older. If it starts at 8.0% at 66, then it would be at least 9% by age 70... Leerar pointed out the diminishing percentage of increase, but he didn't actually say it was actuarially neutral. ...
by Frugal Al
Mon Nov 16, 2015 9:41 am
Forum: Personal Consumer Issues
Topic: Jeep Cherokee Limited vs Acura RDX
Replies: 16
Views: 1810

Re: Jeep Cherokee Limited vs Acura RDX

Much as one would want to help American workers in an American company, the reality is the Honda will give you less trouble and a higher resale value. What American company are you referring to, VT? What we really have is an Italian company and a Japanese company with about 71% vs 70% domestic cont...
by Frugal Al
Sun Nov 15, 2015 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Gov't Social Security age decision website
Replies: 6
Views: 1424

Re: Gov't Social Security age decision website

I just got a chance to take a good look at the new calculator/website. I think they did a great job with keeping it simple and easy to understand. At the same time, it's important to recognize that: 1) It is using a 0% discount rate. (That is, it's assuming that early-received benefits are invested...
by Frugal Al
Sun Nov 15, 2015 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Gov't Social Security age decision website
Replies: 6
Views: 1424

Re: Gov't Social Security age decision website

I like the Bedrock Capital site and have referred to it many times. The Consumer Finance site is ridiculously basic, incomplete, and inaccurate. [OT comments removed by admin LadyGeek]
by Frugal Al
Thu Nov 12, 2015 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Do you believe that Social Security [is actuarially neutral]
Replies: 130
Views: 12558

Re: Do you believe that Social Security [is actuarially neutral]

Nisi, I agree that familial longevity is not a guarantee of one's longevity; however, if one is lucky enough to have that along with better than average health, it can offer a bit of tilt to the annuity decision. No guarantees, of course. The RP-2014 mortality tables being pushed for adoption by the...
by Frugal Al
Thu Nov 12, 2015 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: How much SS longevity insurance to buy (new rules)?
Replies: 49
Views: 4554

Re: How much SS longevity insurance to buy (new rules)?

Good graph, JW. I like it too. It seems to correlate with the raw numbers I've worked up.

VtMaps, I'm not sure the trade-off is worth it either. Fortunately, you don't have to make the decision quite yet.
by Frugal Al
Fri Nov 06, 2015 11:57 am
Forum: Personal Finance (Not Investing)
Topic: pension lump sum distribution
Replies: 6
Views: 383

Re: pension lump sum distribution

You need to provide specifics to your lump sum offer, and what might be right for one person isn't right for another.The fact that you will not be covered completely by PBGC is obviously a very real concern. This sounds like a significant part of your retirement portfolio. Part of the decision is yo...
by Frugal Al
Wed Nov 04, 2015 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Should I cash out my whole life policy?
Replies: 81
Views: 5209

Re: Should I cash out my whole life policy?

It shouldn't be a surprise that the Pru agent recommended keeping the policies, but there is an argument to be made to at least keep the older one. Whether it's much of an argument is a matter of perspective. The older policy, let's call it Policy #1, is over 30 years old. It looks like there would ...
by Frugal Al
Tue Nov 03, 2015 4:31 pm
Forum: Personal Consumer Issues
Topic: Is a car warranty package worth it?
Replies: 46
Views: 2039

Re: Is a car warranty package worth it?

I'm not normally a warranty advocate, but the FB series Subaru engines have documented cases of engine failure and oil consumption issues requiring a rebuild. Most issues that I'm aware of involved the Forester and Impreza, but I doubt the Outback is exempt. If she plans to keep the car outside of ...
by Frugal Al
Tue Nov 03, 2015 7:59 am
Forum: Personal Consumer Issues
Topic: Is a car warranty package worth it?
Replies: 46
Views: 2039

Re: Is a car warranty package worth it?

Although there are some situations where extended warranties make sense, this isn't one of them. Given that the vehicle owner only drives 5k miles per year, I fail to see what benefit the extended warranty would offer over 7 years and perhaps 35k miles. Even latent defects will be unlikely to manife...
by Frugal Al
Mon Nov 02, 2015 8:49 am
Forum: Personal Consumer Issues
Topic: Oil change - Auto shop or DIY
Replies: 113
Views: 6124

Re: Oil change - Auto shop or DIY

I've got to say I don't get the appeal of a fumoto valve, for a boglehead. They're just too expensive for a boglehead - like an excessive expense ratio - and won't necessarily transfer to future cars. The real question is how many bogleheads replace those annoying crush washers (drain plug) that so...
by Frugal Al
Fri Oct 30, 2015 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Did I make right choice on Pension vs. Lump sum
Replies: 36
Views: 3422

Re: Did I make right choice on Pension vs. Lump sum

This article http://www.clarkhoward.com/when-you-should-take-lump-sum-over-pension suggests the "Six Percent Rule" as a general first indicator as whether or not to take the lump sum. In your case $1620 x 12 = $19440 / $308000 = 6.31% The article also lists some other factors to consider ...
by Frugal Al
Thu Oct 29, 2015 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Another should I cash out my Whole Life Ins thread
Replies: 5
Views: 656

Re: Another should I cash out my Whole Life Ins thread

Doing the compound interest calcs, I figure if we cash out the whole life policies and invest the cash values and future annual premiums, we would have $137K in 30 years at 7% interest . It's too bad you didn't follow your hunch 5 years ago; you could have saved some money. Assuming a (safe) 7% int...
by Frugal Al
Mon Oct 26, 2015 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Lump Sum or Pension - would like another perspective
Replies: 28
Views: 1536

Re: Lump Sum or Pension - would like another perspective

If I took the annuity, I was planning on making it joint with the 100% survivor option. That said, I am not convinced that the monthly pension payment is the way to go. Daacrusher2001, was the monthly payment used in Cruncher's analysis the 100% survivor payment or the single life payment? Hef, the...
by Frugal Al
Sun Oct 25, 2015 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Retiring soon-should I buy an SPIA or invest in Funds?
Replies: 17
Views: 1817

Re: Retiring soon-should I buy an SPIA or invest in Funds?

A 4.5% withdrawal rate, adjusted with inflation, at age 62 is a bit aggressive given the current state of anticipated future returns for a balanced portfolio. Is this a continuous withdrawal rate with social security being considered as well? What is your SS claiming strategy? You do sound like you ...
by Frugal Al
Fri Oct 23, 2015 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Do I Actually Take The Pension Buyout???
Replies: 27
Views: 3534

Re: Do I Actually Take The Pension Buyout???

I had a similar situation last year and after doing the math (with the help of some very helpful Bogleheads), decided to treat the $1500 per month guaranteed income as part of my retirement income strategy. Sonic, your situation was similar, but not congruent. Your rate of return was better and you...
by Frugal Al
Thu Oct 15, 2015 3:41 pm
Forum: Investing - Theory, News & General
Topic: Safe Investment Options
Replies: 50
Views: 4794

Re: Safe Investment Options

That is a very good graph, Taylor. It explains it well. Could you ask them to make that interest part a little smaller to better reflect today's annuities? Just kidding, sort of. :D
by Frugal Al
Thu Oct 15, 2015 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Pension payout: any reason to take 2% or 4% COLA?
Replies: 4
Views: 596

Re: Pension payout: any reason to take 2% or 4% COLA?

Once we get to 70, ~12 years for me and ~15 years for my wife, we will each have our own pension payout and SS. Fortunately, our core costs are low and can be covered by one pension and SS. For this reason we have not considered the 50% survivor annuity option. Have you done some proforma tax retur...
by Frugal Al
Thu Oct 15, 2015 7:57 am
Forum: Investing - Theory, News & General
Topic: Safe Investment Options
Replies: 50
Views: 4794

Re: Safe Investment Options

Back to annuity sales :) ...and misleading interest rates... In the original example, a 70 year old male, buys a $100K SPIA and gets $641 per month. Where does the $641 come from? We agree that it is not interest. If the 70 year old put his money in a $100K CD at 2.3% interest that would give him a...
by Frugal Al
Wed Oct 14, 2015 9:25 am
Forum: Investing - Theory, News & General
Topic: The Atlantic: "...Surprisingly Lucrative Investment Secrets of Al Gore"
Replies: 6
Views: 1523

Re: The Atlantic: "...Surprisingly Lucrative Investment Secrets of Al Gore"

You had me at "capitalism-subverting." (Sarcasm Alert) Apparently those capitalists are just too stupid to understand sustainable investments. Investment secrets??? Don't believe the hype. Gore acts like no one else has ever thought of this. Give me a break. It appears to be mostly indexi...
by Frugal Al
Wed Oct 14, 2015 8:31 am
Forum: Investing - Theory, News & General
Topic: The Atlantic: "...Surprisingly Lucrative Investment Secrets of Al Gore"
Replies: 6
Views: 1523

Re: The Atlantic: "...Surprisingly Lucrative Investment Secrets of Al Gore"

You had me at "capitalism-subverting." Apparently those capitalists are just too stupid to understand sustainable investments. Investment secrets??? Don't believe the hype. Gore acts like no one else has ever thought of this. Give me a break. It appears to be mostly indexing with an ESG (E...

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