Search found 1661 matches

by SGM
Mon May 02, 2016 4:54 am
Forum: Investing - Help with Personal Investments
Topic: Problems with EJ (Is anyone surprised?) [Edward Jones]
Replies: 13
Views: 1414

Re: Problems with EJ (Is anyone surprised?)

I would avoid an annuity with an income rider. I fear that you will be sold an annuity that will have hidden fees and will enrich a sales person more than it will enrich you. If you want an annuity only buy an SPIA. For safety I would only purchase an SPIA through Vanguard. Your post sounds like you...
by SGM
Sun May 01, 2016 5:12 am
Forum: Investing - Help with Personal Investments
Topic: Hitting an investment crossroads
Replies: 21
Views: 2507

Re: Hitting an investment crossroads

A 403B that we recently annuitized is not taxable to the state. We would have lost that advantage if we rolled it over into an IRA. We happily paid off a mortgage early but with an interest rate deduction it may not be the best strategy. Back door Roths may not be around forever so I would take adva...
by SGM
Sat Apr 30, 2016 5:12 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell my Altria (tobacco) shares?
Replies: 18
Views: 1962

Re: Should I sell my Altria (tobacco) shares?

Today's WSJ has an article entitled Soaring Tobacco Stocks Prompt Calpers to Reconsider Investment Strategy California Public Employees’ Retirement System may have missed out on up to $3 billion by not investing in tobacco shares. Calpers divested tobacco stocks 18 years ago. Maybe avoiding sin stoc...
by SGM
Sat Apr 30, 2016 5:00 am
Forum: Investing - Theory, News & General
Topic: VTEB: Better than online savings accounts?
Replies: 16
Views: 2003

Re: VTEB: Better than online savings accounts?

I have use VTEB recently and MUB for several years as my bond holdings in taxable. Since I don't expect to sell those holdings at any inopportune time they are a suitable substitute for me. The after tax return is a lot better than CDs. If you need cash online CDs are an option for higher returns. J...
by SGM
Fri Apr 29, 2016 3:40 am
Forum: Personal Finance (Not Investing)
Topic: Present Bias (PB) and decreased retirement savings
Replies: 0
Views: 235

Present Bias (PB) and decreased retirement savings

A paper at the Retirement Research Consortium in D.C. in 2015 discussed exponential growth bias (EGB)which is the propensity to estimate future returns linearly instead of exponentially. See Bobcat2's post https://www.bogleheads.org/forum/viewtopic.php?f=10&t=171579&p=2587810&hilit=eg+bi...
by SGM
Thu Apr 28, 2016 7:25 pm
Forum: Investing - Theory, News & General
Topic: When to begin taking Social Security payments?
Replies: 31
Views: 1627

Re: When to begin taking Social Security payments?

One serious consideration if you are planning to wait until age 70 to begin taking SS benefits is that you may not receive what you were promised. This has happened to me. I turned 70 last June and began taking SS benefits for the first time. For the past ten months I have received the full retirem...
by SGM
Thu Apr 28, 2016 6:28 pm
Forum: Investing - Theory, News & General
Topic: When to begin taking Social Security payments?
Replies: 31
Views: 1627

Re: When to begin taking Social Security payments?

Retirement and survivor beneficiary families are not affected by the family maximum rules unless three or more family members receive benefits. Regarding your and your spouses benefits only there is no family limit.
by SGM
Thu Apr 28, 2016 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: When to start Social Security. A different take
Replies: 103
Views: 8150

Re: When to start Social Security. A different take

We are delaying SS until 70 and receiving one spousal benefit from 66 to 70. We are spending out of taxable. During this time we converted 100% of tIRAs into Roth accounts. The Roth accounts will likely be inherited many years down the road and depending on the rules regarding stretch IRAs could gre...
by SGM
Mon Apr 25, 2016 6:35 pm
Forum: Investing - Theory, News & General
Topic: Social Security loopholes closed
Replies: 19
Views: 2494

Re: Social Security loopholes closed

I think that is an error about the back door Roth. I don't consider the file and suspend and spousal benefit to be a loophole. I have close friends who took my advice and now are saving and investing the spousal benefit until they stop working at 70 and collect their own benefits. They are not fortu...
by SGM
Mon Apr 25, 2016 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: 3.5M taxable bonds
Replies: 39
Views: 3838

Re: 3.5M taxable bonds

The duration of the bonds in intermediate term muni bond fund is 4.8 years. Limited term is 2.5 years. High Yield is or Long term yield is 6.5 and 6.4 years. The higher yielding funds don't have a much longer average duration than intermediate. I keep a little in the higher duration muni funds, but ...
by SGM
Mon Apr 25, 2016 9:09 am
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4796

Re: Allan Roth on why bond funds are better than individual bonds

I have seen elderly relative's laddered individual state muni bond returns. The returns are lower than the relative realizes due to the trickery referred to in Allan Roth's article. The relative pays more than the face value of the bond and gets back the face value when the bond reaches maturity low...
by SGM
Sun Apr 24, 2016 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: SS question before new changes after 4/29/16
Replies: 4
Views: 513

Re: SS question before new changes after 4/29/16

Mike Piper has given you excellent advice that will be worth tens of thousands to you. Now you have to act pronto. :beer
by SGM
Sun Apr 24, 2016 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Me vs. Vanguard
Replies: 24
Views: 3795

Re: Me vs. Vanguard

I am avoiding TIPS funds at these rates and I think I will get some inflation protection from stocks and delayed SS. I have some of the corporate bond fund in a tax favored account. Limited term muni fund may do better than longer duration funds if interest rates go up this year. I like a little mor...
by SGM
Sun Apr 24, 2016 5:17 am
Forum: Personal Finance (Not Investing)
Topic: Question for the Bogleheads Millionaires
Replies: 355
Views: 48786

Re: Question for the Bogleheads Millionaires

abuss368 wrote:If I lived in the Bay Area, I would rent a cell from Alcatraz to keep costs down.

San Quentin is a bit more crowded but has terrific views of San Francisco Bay. Access by car is better than Alcatraz, fewer tourists and less fog.
by SGM
Sat Apr 23, 2016 8:47 am
Forum: Investing - Theory, News & General
Topic: Early Retirement and Social Security Benefits Reduction
Replies: 29
Views: 3396

Re: Early Retirement and Social Security Benefits Reduction

Our financial advisor ran two scenarios. SS at 62 or at FRA. By taking SS at 62 our portfolio will be bigger at 95 than if we took SS at FRA. PV of money is worth more than the 8% SS payments increases yearly. I have read that the increase in SS from 62 to 66 is 25% or 6% per year and from 66 to 70...
by SGM
Sat Apr 23, 2016 4:43 am
Forum: Investing - Theory, News & General
Topic: Early Retirement and Social Security Benefits Reduction
Replies: 29
Views: 3396

Re: Early Retirement and Social Security Benefits Reduction

Our financial advisor ran two scenarios. SS at 62 or at FRA. By taking SS at 62 our portfolio will be bigger at 95 than if we took SS at FRA. PV of money is worth more than the 8% SS payments increases yearly. I have read that the increase in SS from 62 to 66 is 25% or 6% per year and from 66 to 70...
by SGM
Fri Apr 22, 2016 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Social Security timing
Replies: 8
Views: 916

Re: Social Security timing

I am the higher earner and am delaying SS until 70. One reason is to have the highest possible widow's benefit same as OP's strategy. There are several other good reasons for us to delay, but the higher widow's benefit would be sufficient for me to delay.
by SGM
Thu Apr 21, 2016 3:13 pm
Forum: Investing - Theory, News & General
Topic: Rick Edelman Advice....Good?
Replies: 22
Views: 3041

Re: Rick Edelman Advice....Good?

... He also made a statement about Vanguard's S&P index 500 fund having hidden trading fees. That would be difficult since the fund tracked quite closely to the index. ... This isn't wrong, but it's not unique to any particular fund either, all mutual funds incur additional expenses (brokerage ...
by SGM
Thu Apr 21, 2016 12:39 pm
Forum: Investing - Theory, News & General
Topic: Rick Edelman Advice....Good?
Replies: 22
Views: 3041

Re: Rick Edelman Advice....Good?

In the past Rick Edelman has said no one should pay off a mortgage early and no one should invest in a Roth IRA. I don't agree with him on either point. He also made a statement about Vanguard's S&P index 500 fund having hidden trading fees. That would be difficult since the fund tracked quite c...
by SGM
Thu Apr 21, 2016 4:43 am
Forum: Investing - Help with Personal Investments
Topic: When to start Social Security. A different take
Replies: 103
Views: 8150

Re: When to start Social Security. A different take

A Roth conversion is a wash at the time of conversion in terms of buying power. If you are in the 28% bracket you will come out ahead eventually even if your retirement bracket is 25%. This assumes that you leave the money untouched in the Roth for a sufficient length of time to grow untaxed and tha...
by SGM
Wed Apr 20, 2016 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: When to start Social Security. A different take
Replies: 103
Views: 8150

Re: When to start Social Security. A different take

Other thoughts I have concerning SS is that it is a far better annuity than is available in the market. Say from 66 to 70 your SS goes from 2000 a month to 2640 a month a 32% increase. You now receive cost of living adjustments on a higher basis. To get a SPIA for that kind of increased payout would...
by SGM
Wed Apr 20, 2016 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: When to start Social Security. A different take
Replies: 103
Views: 8150

Re: When to start Social Security. A different take

I am not concerned about a break even point. If I were I would only compare delaying SS to a safe investment such as 10 year treasuries. If interest rates on safe investments were high I would have a different analysis. I am delaying SS and used the time of lower income to convert Roth IRAs. It is t...
by SGM
Tue Apr 19, 2016 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: How to take payments from an annuity
Replies: 5
Views: 450

Re: How to take payments from an annuity

If I already own the annuity then I would take it out as soon as possible without penalty and also consider tax consequences. Then I would reallocate it according to what made sense for my situation and age. In my case at 55 I would invest it in low cost index funds and muni bond funds. I would also...
by SGM
Tue Apr 19, 2016 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to take payments from an annuity
Replies: 5
Views: 450

Re: How to take payments from an annuity

Immediateannuitues.com indicates that with a 250k would pay out about 1k a month for a 55 year old. If I were 55 years old I would not purchase an annuity.

I am a retiree and would consider an annuity after age 70.
by SGM
Sun Apr 17, 2016 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Eminent Domain Question
Replies: 6
Views: 643

Eminent Domain Question

Any suggestions on how to get fair value for land taken by eminent domain? Does one have to go to court to do so? Will getting a private appraisal help if it differs from the state's appraisal?
by SGM
Sat Apr 16, 2016 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Meeting with a Fidelity Financial planner, is it useful?
Replies: 39
Views: 3621

Re: Meeting with a Fidelity Financial planner, is it useful?

I received false information from a retirement specialist who told me I could only have one solo 401k. Not true. I had an aggressive cold call from a rep who wanted me to purchase an inappropriate annuity. A relative on retiring with a large 401k under Fidelity had a good planning meeting with a Fid...
by SGM
Sat Apr 16, 2016 8:44 am
Forum: Personal Finance (Not Investing)
Topic: University of Virginia vs University of Miami
Replies: 134
Views: 7860

Re: University of Virginia vs University of Miami

Father of a UVA grad here. We thought it was a great school and college town. Friend's daughter went to the U and had a great experience. UVA has a better academic reputation.
by SGM
Sat Apr 16, 2016 4:52 am
Forum: Investing - Theory, News & General
Topic: If wall street is rigged and corrupt , why invest in it?
Replies: 64
Views: 4439

Re: If wall street is rigged and corrupt , why invest in it?

Holding the broad market is the easiest way to participate in the economy. What are you going to invest in otherwise? semi-precious stones? It is difficult to make money given inflation, taxes, investment expenses and other errors individual investors are prone to make. "The market is rigged&qu...
by SGM
Fri Apr 15, 2016 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard vs Other Solo 401K
Replies: 11
Views: 407

Re: Vanguard vs Other Solo 401K

You can use Vanguard ETFs at another brokerage firm. You pay a fee to purchase the ETF, but you get the same low ERs as Admiral funds. Possibly you may be allowed to reinvest dividends into the ETFs without a fee. This method may leave some cash idle or in a fund without fees that may or may not be ...
by SGM
Fri Apr 15, 2016 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Time to follow the Boglehead way?
Replies: 28
Views: 3073

Re: Time to follow the Boglehead way?

Wow you have high ERs in your company's 401k. Any way of getting that changed? Can you take money out of your 401k and transfer it to your IRA? Your IRA looks to have high ERs also and is overly complicated without providing any more diversification than a simpler portfolio. Most variable annuities ...
by SGM
Wed Apr 13, 2016 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: I'll be a Boglehead Friday. Any advice?
Replies: 93
Views: 6234

Re: I'll be a Boglehead Friday. Any advise?

I have talked with many people at Vanguard and no one has ever identified himself as a broker. There are broker/advisors who recommend Vanguard funds. You don't need a broker/advisor to invest in Vanguard funds. A broker does not have a fiduciary responsibility to you. If this guy is in a stand alon...
by SGM
Tue Apr 12, 2016 3:54 am
Forum: Investing - Theory, News & General
Topic: Annuities and longevity risk, analyzing the problem
Replies: 45
Views: 3695

Re: Annuities and longevity risk, analyzing the problem

. I/we did not opt for the inflation adjustment option. That was due to our own situation, in which I/we were trying to duplicate the "lost" pension program I had been covered under many years ago. Being a private company pension, it would not have been inflation adjusted - quite unlike g...
by SGM
Mon Apr 11, 2016 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Tilt or no tilt (mid 40s, $4-5M)
Replies: 56
Views: 4700

Re: Tilt or no tilt (mid 40s, $4-5M)

There is no way to know in advance if a tilt will outperform a simple 3 fund portfolio. I have a slight tilt and still have some individual stocks with capital gains. I have no idea if I am helping myself or not. If it doesn't cost me too much in extra expenses I might continue to tilt a little bit....
by SGM
Sun Apr 10, 2016 4:32 am
Forum: Investing - Theory, News & General
Topic: DOL fiduciary rule, will anything change?
Replies: 15
Views: 1460

Re: DOL fiduciary rule, will anything change?

Google Jason Zweig's WSJ article You — Not the Government — Are Responsible For Your Retirement Savings A few key points: Many advisors charge 2% Even the industry standard of 1% is 50% of expected return going forward. Industry advisors will use the new law as a sales pitch...."I have to do ri...
by SGM
Sat Apr 09, 2016 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Another newbie in trouble...
Replies: 14
Views: 2176

Re: Another newbie in trouble...

This prior thread might be helpful. viewtopic.php?t=155127

I would call up Vanguard and tell them to transfer over the account. Then I would discuss with Vanguard an asset allocation that will meet your needs.
by SGM
Sat Apr 09, 2016 8:12 am
Forum: Personal Finance (Not Investing)
Topic: IRMAA - Medicare Premium adj - how get SS to look at current year?
Replies: 23
Views: 792

Re: IRMAA - Medicare Premium adj - how get SS to look at current year?

I do not believe they will subtract out the conversions. However, they should subtract out your earned income if you have decreased or no earned income since you have retired since 2014. You will probably have to show them your 2015 1040 or a letter from your former employer stating you retired. I d...
by SGM
Sat Apr 09, 2016 8:02 am
Forum: Investing - Theory, News & General
Topic: Burton G. Malkiel - New advice for bond portfolios
Replies: 41
Views: 4593

Re: Burton G. Malkiel - New advice for bond portfolios

I have been investing in muni bonds in taxable and corporate bonds in retirement accounts for a few years. I am not satisfied with lower returns of the total bond market fund at these very low interest rates. I can tolerate and afford the additional risk. I also do not think that the risk is very gr...
by SGM
Fri Apr 08, 2016 4:50 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads too conservative?
Replies: 135
Views: 13056

Re: Are Bogleheads too conservative?

I cannot judge if other BHs are too conservative or not. It is a matter of job security, expenses, responsibilities, future pensions, temperament etc.

I advise learning as many skills as possible, invest in your education and make yourself employable and valuable regardless of circumstances.
by SGM
Thu Apr 07, 2016 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: OK to spend Roth funds early in retirement?
Replies: 13
Views: 2151

Re: OK to spend Roth funds early in retirement?

I would take the money out of taxable and IRA accounts before taking out of a Roth. I would prefer to take out a mortgage than to take the cash out of a Roth. The advantage of decreasing RMDs and increasing tax free long term compounding is generally underestimated.
by SGM
Thu Apr 07, 2016 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Foxbusiness: Why Taxes, Not Fees are Retirement Savers' Biggest Enemy
Replies: 32
Views: 3335

Re: Foxbusiness: Why Taxes, Not Fees are Retirement Savers' Biggest Enemy

Expense ratios and management fees have a significant impact on retirement spending. I am all for converting to Roth's unless you expect lower taxes in retirement. If you are fortunate to have a lot saved in tax deferred accounts and have a pension, SS and other sources of income you can be in a hig...
by SGM
Wed Apr 06, 2016 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 6687

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

Now, I admit I am quibbling over whether conversions for me would cause us to annually pay an extra $2500 in Medicare Part B premiums, but this is not the primary consideration for us as we engage in substantial conversions over the next few years; my reasons are similar to the original reasons pos...
by SGM
Wed Apr 06, 2016 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: disney drip
Replies: 7
Views: 1441

Re: disney drip

Wowzers look at those fees! https://stockplans.broadridge.com/Plan/Summary?planId=104 (Full disclosure, I've never looked at a direct purchase stock before so that may be perfectly normal, but there sure seem to be a lot of them) :sharebeer Those fees are quite high. I believe that Computershare wh...
by SGM
Wed Apr 06, 2016 6:01 am
Forum: Investing - Theory, News & General
Topic: Please explain Fixed Indexed Annuities
Replies: 35
Views: 2149

Re: Please explain Fixed Indexed Annuities

For a $500k indexed equity with a 6% guaranteed payout starting in 3 years compared to a similar SPIA payout there are a few situations where the payout is greater for the EIA. The EIA is slightly favorable for younger females and for some joint annuitants. There are no instances where the EIA has a...
by SGM
Tue Apr 05, 2016 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Why did my expected S. S. Benefits Only Increase a Dollar
Replies: 11
Views: 1332

Re: Why did my expected S. S. Benefits Only Increase a Dollar

I suspect $2660 a month at FRA of 66 is pretty close to the maximum for when you reach your FRA in 4 years.


Maximum Social Security Benefit: 2015 2016

Worker Retiring at FRA $2,663/mo. $2,639/mo.
by SGM
Tue Apr 05, 2016 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 6687

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

In another topic, it was mentioned that at the time of inheritance, the new cost basis is computed based upon the value of the assets on that day which essentially makes the entire inheritance tax free. My question:- does this only apply to taxable (aka accumulated using post-tax money) inheritance...
by SGM
Tue Apr 05, 2016 3:15 pm
Forum: Investing - Theory, News & General
Topic: Please explain Fixed Indexed Annuities
Replies: 35
Views: 2149

Re: Please explain Fixed Indexed Annuities

Per Moshe Milevsky of York University in Toronto says you need to have at least 90% of your investment in stock owning mutual to have even a chance of surpassing the equity index annuities minimum income guarantee. Most insurance companies limit your investment in stocks to less than 70% with the re...
by SGM
Mon Apr 04, 2016 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 6687

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

In another topic, it was mentioned that at the time of inheritance, the new cost basis is computed based upon the value of the assets on that day which essentially makes the entire inheritance tax free. My question:- does this only apply to taxable (aka accumulated using post-tax money) inheritance...
by SGM
Mon Apr 04, 2016 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Unwind my IRA?
Replies: 13
Views: 908

Re: Unwind my IRA?

One thing that I don't read much about on this site is that the advantage of a Roth conversion increases the longer it is held assuming that there are earnings and increased values. The converted Roth is not subject to taxes. A key factor in planning Roth Conversions is the marginal tax rate at the...
by SGM
Mon Apr 04, 2016 4:53 am
Forum: Personal Finance (Not Investing)
Topic: Another reason why delaying SS is a good idea (from Jonathan Clements)
Replies: 22
Views: 3528

Re: Another reason why delaying SS is a good idea (from Jonathan Clements)

My reasons for delaying SS: Compared to safe investments like treasuries the delay is a better deal. I think of SS as insurance against longevity. I don't need to take the money at 62 or any time prior to age 70. Even though we are both delaying DW started a spousal benefit at her FRA before the Apr...
by SGM
Mon Apr 04, 2016 4:30 am
Forum: Investing - Help with Personal Investments
Topic: What to do with excess income after retirement!
Replies: 7
Views: 1461

Re: What to do with excess income after retirement!

Convert some of a tIRA to a Roth this year and probably before collecting SS. Continue to convert while delaying SS until 70 unless you have health issues. Start your own 401k for your part time work after retirement.

Go to advanced search