Search found 1851 matches

by SGM
Sat Oct 01, 2016 9:29 am
Forum: Local Chapters and Bogleheads Community
Topic: How Did You Become A Boglehead? What Led You Here?
Replies: 26
Views: 885

Re: How Did You Become A Boglehead? What Led You Here?

I had long been paying myself first and keeping investment costs low. I was 100 % invested in large and mid cap individual stocks as soon as I had my first good paying job. I would say I had a value tilt. In the accumulation period I was never upset by market swings. I avoided investing fads. I watc...
by SGM
Sat Oct 01, 2016 3:32 am
Forum: Investing - Help with Personal Investments
Topic: Are REITS appropriate in a "buy and hold" portfolio?
Replies: 16
Views: 1615

Re: Are REITS appropriate in a "buy and hold" portfolio?

I own some VNQ in my Roth. I realize this has some risk in that REITs have characteristics of stocks. They are somewhat of a hybrid investment. This may not be optimal, but it is what I have chosen to do. REITs are included in the total stock market fund so one already has some exposure. "You p...
by SGM
Tue Sep 27, 2016 5:03 pm
Forum: Investing - Theory, News & General
Topic: If you own Vanguard Total Stock Market, do you re-invest dividends?
Replies: 51
Views: 5043

Re: If you own Vanguard Total Stock Market, do you re-invest dividends?

I reinvest dividends in my Roth IRAs. Since I have been retired I stopped reinvesting all taxable dividends. I either spend them or reallocate them. It would probably have been a good idea to not reinvest in taxable, in order to sell specific lots, but I never bothered to do that. I don't plan on se...
by SGM
Sun Sep 25, 2016 4:05 am
Forum: Investing - Theory, News & General
Topic: The coming municipal bond crisis
Replies: 51
Views: 7133

Re: The coming municipal bond crisis

I have seen these reports before. However, I continue to keep most of my bond allocation in Vanguard's muni funds. When the warnings came out a few years ago about California bonds I bought some CA muni bond funds as it seemed irrationally oversold. I am looking forward to hearing more of the pros a...
by SGM
Sun Sep 25, 2016 3:39 am
Forum: Investing - Help with Personal Investments
Topic: When to collect Social Security - Please check my logic
Replies: 16
Views: 2233

Re: When to collect Social Security - Please check my logic

I did not pay much attention to a break even analysis, in part because I valued the insurance against longevity of delaying SS until 70. Fortunately we were able to take advantage of the file and suspend strategy with a restricted spousal benefit at FRA. With income slightly lower between retirement...
by SGM
Fri Sep 23, 2016 5:01 pm
Forum: Investing - Theory, News & General
Topic: WSJ: Bank Balance better predictor of happiness than Total Wealth
Replies: 43
Views: 6162

Re: WSJ: Bank Balance better predictor of happiness than Total Wealth

Periodically my checking account waxes and wanes as I spend it or reinvest. I have not owned a bank savings account in the last 37 years. I carry a balance in the checking account for any expenses that come up. It feels good to pay cash for items and have no debt. I pretty much stay 99.9% invested a...
by SGM
Fri Sep 23, 2016 3:55 am
Forum: Investing - Help with Personal Investments
Topic: How is the financial advisor taking my mother? Annuities?
Replies: 29
Views: 3463

Re: How is the financial advisor taking my mother? Annuities?

At a minimum I would take $80k of the $200k to cover expenses from age 62 to 66 while delaying SS until 66. She would go from $1650 a month to $2200 a month from SS or an additional $550 a month in SS income that is indexed somewhat to inflation. This is better than buying an SPIA with the $80k. She...
by SGM
Thu Sep 22, 2016 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: What should I do with my bucket of DRIPs?
Replies: 6
Views: 1679

Re: What should I do with my bucket of DRIPs?

I once had a lot of DRIPS and transferred them to a brokerage account. Shareholders has some fees I believe for periodic investments and reinvested dividends. If you have any very large positions you might want to sell some of them off to reinvest in broad index funds.
by SGM
Thu Sep 22, 2016 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Retirees living off Wellesley Income Fund: how do you manage the nuts and bolts?
Replies: 8
Views: 1664

Re: Retirees living off Wellesley Income Fund: how do you manage the nuts and bolts?

I don't use Wellesley or target funds, but I have all my dividends and capital gains go directly into my checking account. I spend what I think I need and then reallocate the rest in Vanguard funds. Some funds have a dividend monthly and others quarterly. I have no concerns about a little more comin...
by SGM
Thu Sep 22, 2016 4:32 am
Forum: Investing - Theory, News & General
Topic: Conversion to ROTH
Replies: 18
Views: 1247

Re: Conversion to ROTH

The advantage of the Roth conversion really takes off when you do not have to take out RMDs at age 70 1/2. Instead our Roth accounts will continue to grow undiminished by taxes for many more years. We will not be pushed into a higher bracket at age 70 1/2 and we might save a little on Medicare premi...
by SGM
Wed Sep 21, 2016 2:19 pm
Forum: Investing - Theory, News & General
Topic: Do Bogleheads Bucket?
Replies: 87
Views: 6939

Re: Do Bogleheads Bucket?

I am retired for two years. I don't use a bucket strategy. It strikes me as needless complication. I read Ray Lucia's book years ago and rejected his recommendations. I do sell long held individual stock holdings yearly that have large capital gains up to certain limits because of taxation. The proc...
by SGM
Tue Sep 20, 2016 3:44 am
Forum: Personal Finance (Not Investing)
Topic: Yup, another pension buyout offer...
Replies: 20
Views: 3052

Re: Yup, another pension buyout offer...

Putting your numbers into immediateannuities.com it looks like the third option of waiting is a lot better than taking it in 2016 which is better than the lump sum.

A commercial annuity would pay your lump sum per the above site:

$1982 a month at 65
$1028 a month in December 2016
by SGM
Tue Sep 20, 2016 3:28 am
Forum: Investing - Help with Personal Investments
Topic: About Vanguard advisors: opinions, thoughts?
Replies: 15
Views: 1335

Re: About Vanguard advisors: opinions, thoughts?

I believe that Vanguard's experts feel that international offers necessary diversification. They don't have quotas and they are concerned about fulfilling their fiduciary responsibility. If you don't want to accept their advice why pay the additional 0.3%? Most of what I have read or heard about Van...
by SGM
Sun Sep 18, 2016 5:14 am
Forum: Investing - Help with Personal Investments
Topic: Considering a 20% swing in my asset allocation
Replies: 41
Views: 2956

Re: Considering a 20% swing in my asset allocation

OP, Not the question that you asked. But, with 1.6 million worth of investment, does it makes sense for either you or your wife to postpone social security payment beyond the full retirement age of 65? I am trying to learn and understand the thinking process behind this kind of decision. KlangFool ...
by SGM
Sat Sep 17, 2016 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Keys to a Successful Retirement
Replies: 55
Views: 6665

Re: Keys to a Successful Retirement

I think that risk in retirement is much different than during accumulation. When you are young and have a lot of human capital there are opportunities to increase your earned income and add to savings. You want prices of stocks to be low when you are accumulating. Large losses from bear markets when...
by SGM
Thu Sep 15, 2016 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Keys to a Successful Retirement
Replies: 55
Views: 6665

Re: Keys to a Successful Retirement

It would be nice if people would save the greater portion of their savings after paying off a mortgage or after the kids are out of college. I just talked to a fellow who said he went to his a county retirement planning session where some soon to be annuitants asked do I have a 403b or a 401k? Some ...
by SGM
Mon Sep 12, 2016 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Confusion about Calculating/Estimating Future/Retirement Tax Bracket
Replies: 11
Views: 1449

Re: Confusion about Calculating/Estimating Future/Retirement Tax Bracket

I am no expert on the lower brackets after receiving SS, but as stated in the Kitces article I referenced above "those in the 15% tax bracket may actually face marginal rates of 22.5% to 27.75% , and those in the 25% tax bracket can see marginal tax rates spike as high as 46.25% !" By the ...
by SGM
Mon Sep 12, 2016 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Confusion about Calculating/Estimating Future/Retirement Tax Bracket
Replies: 11
Views: 1449

Re: Confusion about Calculating/Estimating Future/Retirement Tax Bracket

The taxation of Social Security can be a little confusing. Here is an interesting article by Kitces showing a number of examples. https://www.kitces.com/blog/the-taxatio ... -increase/
by SGM
Sun Sep 11, 2016 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: retiring with a mortgage
Replies: 35
Views: 3093

Re: retiring with a mortgage

The time to take added risk is when you are young and have a lot of human capital. When you are retired it is time to cut back on risk. Getting a mortgage in retirement is the last thing I would want to do. My tolerance for risk is much different now that I am retired. I haven't had a mortgage for 2...
by SGM
Fri Sep 09, 2016 2:29 am
Forum: Investing - Help with Personal Investments
Topic: Is my financial adviser expensive? Can I improve my portfolio?
Replies: 37
Views: 3856

Re: Is my financial adviser expensive? Can I improve my portfolio?

I agree you are paying too much for an advisor and you don't need one. At 1.5% you are paying at a rate of $900 a year just to keep $60k in cash in your Roth. Berkshire Hathaway is tax efficient in that it has no dividend distributions so if you were to hold it at all then why put it in a Roth IRA i...
by SGM
Thu Sep 08, 2016 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Do you think I can retire?
Replies: 9
Views: 1739

Re: Do you think I can retire?

I am a big fan of Roth conversions, but I don't like the idea of converting when you don't have the money to pay the taxes out of a taxable account. It is pretty much a break even situation. You really have to look closely at your tax situation. If your taxes are going to go up in retirement then ma...
by SGM
Thu Sep 08, 2016 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Leaving Advisor
Replies: 24
Views: 2619

Re: Leaving Advisor

You shouldn't have to pay much tax on a $20k taxable account and none on the transfer of IRAs. You might consider some Roth conversions prior to RMDs at 70 1/2. Your RMDs may start at $16k assuming you have some small growth in the tIRAS between now and 70 1/2. I don't know your situation, but it is...
by SGM
Wed Sep 07, 2016 6:22 pm
Forum: Investing - Help with Personal Investments
Topic: This would be a terrible mistake, right? [Convert all IRAs]
Replies: 20
Views: 1865

Re: This would be a terrible mistake, right? [Convert all IRAs]

I converted all of my tax deferred accounts to Roth IRAs. I am pleased that there is a chance that my Medicare premiums will be lower in the future and are this year. I like having slightly lower taxable dividends from having paid taxes for the conversion out of a taxable account. My Roth account is...
by SGM
Wed Sep 07, 2016 11:10 am
Forum: Investing - Help with Personal Investments
Topic: This would be a terrible mistake, right? [Convert all IRAs]
Replies: 20
Views: 1865

Re: This would be a terrible mistake, right? [Convert all IRAs]

... 2009 would have been the year to convert more if you were already taking RMDs because congress suspended RMDs for that one year only. ( The elimination of the $100,000 income cap to be able to convert to a Roth didn't take effect until 2010, so most clients couldn't convert until then. I was aw...
by SGM
Wed Sep 07, 2016 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Expat Teacher considering pulling the plug
Replies: 15
Views: 1883

Re: Expat Teacher considering pulling the plug

The OP is considering coming to the US in 2017 and could work here for 40 quarters (10 years) and qualify for Medicare A for free. OP could also buy Medicare part A. The more quarters up to 40 that the OP works in the US the less he would have to pay to purchase Medicare A. The OP only has to live i...
by SGM
Wed Sep 07, 2016 8:52 am
Forum: Investing - Help with Personal Investments
Topic: This would be a terrible mistake, right? [Convert all IRAs]
Replies: 20
Views: 1865

Re: This would be a terrible mistake, right? [Convert all IRAs]

if they are in the 33-35% tax bracket normally then the savings for Medicare premiums may be only $2k or so for the future in 2019 and beyond. This is not worth the extra current taxes on a huge conversion in 2016. They may have some benefit from partial conversions in future years. If they give any...
by SGM
Wed Sep 07, 2016 2:29 am
Forum: Personal Finance (Not Investing)
Topic: Expat Teacher considering pulling the plug
Replies: 15
Views: 1883

Re: Expat Teacher considering pulling the plug

Medicare part A is free if you have worked and paid Medicare taxes for 40 quarters (10 years). For most people Medicare A is free, but you can pay to get it based on the number of quarters you have worked if you do not meet the 40 quarters minimum. Medicare A covers hospitalization after a $1100+ de...
by SGM
Mon Sep 05, 2016 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: Buy, sell or hold Caterpillar?
Replies: 29
Views: 2643

Re: Buy, sell or hold Caterpillar?

I have been selling individual stocks a little bit each year in order to diversify. You can sell your 500 shares in your 401k immediately without a tax consequence. My goal is to keep any individual stock holding below a certain total value. I have also donated some stocks with LT capital gains. I w...
by SGM
Sun Sep 04, 2016 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: $50M+ - Need a sounding board/advice
Replies: 205
Views: 22026

Re: $50M+ - Need a sounding board/advice

I have had Vanguard look over my portfolio several years ago and made progress simplifying and moving assets into broad index funds. I am considering having Vanguard look at my current portfolio now that I am retired. I would not pay for assets under management. I have seen the results of that appro...
by SGM
Sun Sep 04, 2016 3:43 am
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 348
Views: 62161

Re: Anyone regret paying off mortgage early?

I still have no regrets for paying off my mortgage over 20 years ago. Not having a mortgage was a bond like move for me and I had no bonds for many years. I pay no interest to anyone. Could there be opportunities lost by not having leverage? Certainly, but it is not worth it to me to bother with it....
by SGM
Sat Sep 03, 2016 8:36 am
Forum: Investing - Help with Personal Investments
Topic: New Job, New State Taxes, New Vanguard Account: To Roth, or not to Roth?
Replies: 3
Views: 397

Re: New Job, New State Taxes, New Vanguard Account: To Roth, or not to Roth?

You can do a Roth conversion at any income level. If you are above the limits of income for a deductible IRA you can put the full amount from any money that you have available. I always just took cash out of whatever account was available to fund a non-deductible IRA. The question concerning whether...
by SGM
Sat Sep 03, 2016 3:51 am
Forum: Investing - Theory, News & General
Topic: Social Security Consulting?
Replies: 26
Views: 2307

Re: Social Security Consulting?

Delaying SS is a no brainer for me in this low interest rate environment. I filed and suspended and DW took a restricted spousal benefit at her FRA prior to April 30th of this year. I primarily consider SS delay as insurance against living a long life. Also if one you delays until 70 then the widow'...
by SGM
Fri Sep 02, 2016 10:12 am
Forum: Investing - Theory, News & General
Topic: relationship between country growth rates and stock returns
Replies: 3
Views: 368

Re: relationship between country growth rates and stock returns

I am not surprised that country growth rates and stock returns are not correlated. This metric is something investors would be likely to hang their hats on and thus is already priced into the stock market of individual countries. Many of these obvious metrics are likely to be built into the price of...
by SGM
Fri Sep 02, 2016 4:38 am
Forum: Personal Finance (Not Investing)
Topic: Should I buy cash or use a loan to buy a property
Replies: 14
Views: 1208

Re: Should I buy cash or use a loan to buy a property

I don't like to make house payments and sold positions to pay off my home mortgage years ago. I still get to deduct the real estate taxes. I liked not having the additional expense of a mortgage payment each month for the last 25+ years.
by SGM
Wed Aug 31, 2016 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: closing custodial account
Replies: 3
Views: 248

Re: closing custodial account

You could transfer the accounts without making any sales to a brokerage account. Then the account could be changed into the grandchildren's individual accounts. They could keep the stock or trade them in and pay the capital gains tax out of proceeds. If they are in the 10 or 15% bracket they may not...
by SGM
Wed Aug 31, 2016 10:43 am
Forum: Investing - Theory, News & General
Topic: Ric Edelman's The Truth about Retirement on PBS
Replies: 142
Views: 12169

Re: Ric Edelman's The Truth about Retirement on PBS

I only listened to a bit of the program. What I heard was not bad. I am pretty skeptical about him and would never let his company manage my investments. Keeping a mortgage in retirement seems like a bad idea to me. I have heard him often on his Saturday on radio show and there are many things that ...
by SGM
Tue Aug 30, 2016 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions - On the right track??
Replies: 5
Views: 399

Re: Roth Conversions - On the right track??

Roth IRAs are better to inherit than a tIRA. If the heir is in a very low tax bracket at the time of inheritance then inheriting a tIRA and taxable assets is better than you converting to a Roth at a high rate. Most people have no idea what the future tax rate of their offspring will be down the roa...
by SGM
Tue Aug 30, 2016 2:59 am
Forum: Investing - Help with Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 47
Views: 4348

Re: zero-dividend investing in taxable account

For those in the 25% to 33% ordinary income tax rate will pay taxes between 15% to 18.8% for qualified dividends. Those in the 39.6% ordinary income tax rate will pay 20% to 23.8% for qualified dividends.

This could be a significant drag on performance for large portfolios.
by SGM
Mon Aug 29, 2016 8:04 am
Forum: Investing - Help with Personal Investments
Topic: $50M+ - Need a sounding board/advice
Replies: 205
Views: 22026

Re: $50M+ - Need a sounding board/advice

A large trust set up by a childless individual many years ago is being eaten up by a large national bank's management fees to the detriment of the final generation of inheritors and there is nothing they can do about it. The large national bank swallowed up the original trustee bank. I would not put...
by SGM
Sat Aug 27, 2016 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion at 28% tax rate.
Replies: 19
Views: 1203

Re: Roth IRA conversion at 28% tax rate.

I contributed the maximum to a solo 401k including profit sharing while at the same time converting tIRAs to a Roth account. This definitely was better than putting the money in taxable as I never had to pay taxes on the Roth money again. Also I expanded my tax deferred space which eventually expand...
by SGM
Sat Aug 27, 2016 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Should I invest ANYTHING right now?
Replies: 27
Views: 3221

Re: Should I invest ANYTHING right now?

Live like a resident and pay off the loan as quickly as possible.
by SGM
Sat Aug 27, 2016 10:17 am
Forum: Investing - Theory, News & General
Topic: When in doubt, convert to a Roth
Replies: 17
Views: 1778

Re: When in doubt, convert to a Roth

I had a little doubt, but I kept on converting over a period of 6 years until there was none left. If you have a good idea of what your yearly income it is best to convert early because there is more time to recharacterize also up to October 15 of the following year. My only doubt was that I never q...
by SGM
Sat Aug 27, 2016 9:59 am
Forum: Investing - Theory, News & General
Topic: "Are Index Funds Eating the World?"
Replies: 38
Views: 4063

Re: "Are Index Funds Eating the World?"

Sometimes, I think BHs are not reading the same piece I am reading. Jack said market chaos would not occur unless indexing was 90% of the market. We are so far from that it is ridiculous.
by SGM
Sat Aug 27, 2016 3:07 am
Forum: Investing - Theory, News & General
Topic: Do passive investors need active investors to survive?
Replies: 20
Views: 2832

Re: Do passive investors need active investors to survive?

The answer is yes. Index investors take the price. Active investors set the price. There is no danger of the markets becoming inefficient until index funds own 90% of the market is what I read. Jack Bogle has stated that that when everybody indexes there would be chaos. Read Jason Zweig's recent pie...
by SGM
Thu Aug 25, 2016 2:43 am
Forum: Investing - Help with Personal Investments
Topic: To reinvest or not to reinvest
Replies: 4
Views: 737

Re: To reinvest or not to reinvest

If you are considering an annuity you might be better off delaying SS until age 70. If you are getting $26k at 66 then you could be receiving something over $34k by delaying until 70. You would have a higher SS basis for inflation adjustments with the longer delay. Also be careful of variable and eq...
by SGM
Wed Aug 24, 2016 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Contributions
Replies: 5
Views: 658

Re: Roth IRA Contributions

If you are over the MAGI for Roth conversions you could still fund a non-deductible traditional IRA. At some later date if your income tax rate is lower you could convert to a Roth. Wait until sometime in 2017 before April 15 to make the decision to contribute to either type of IRA if close to $184k...
by SGM
Tue Aug 23, 2016 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion options
Replies: 15
Views: 1325

Re: Roth conversion options

Scenario 3 is probably the best way to go. You could possibly continue to convert after reaching 70 1/2 if it does not increase your tax rate. You cannot convert the RMDs but they now become taxable and you can pay the taxes out of the RMDs and take a little more out of the tIRA to convert more for ...
by SGM
Tue Aug 23, 2016 4:42 am
Forum: Investing - Help with Personal Investments
Topic: Should I do Roth conversions?
Replies: 10
Views: 833

Re: Should I do Roth conversions?

Among several factors to consider are how much your SS will be taxed. This can be 0,50 or 85% depending on income. After RMDs start how does that affect SS taxation? Your income between $25k and $34k SS will be taxed up to 50%, above $34k it will be taxed up to 85%. A factor in determining when and ...
by SGM
Mon Aug 22, 2016 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion or Not?
Replies: 45
Views: 3182

Re: Roth Conversion or Not?

I don't have much to add that hasn't already been posted above. However, I am pleased to now have dividends that will never be taxed and have fewer dividends in taxable accounts. Those taxable dividends are a drag on returns even though I am not focusing on dividend producing stock. Paying taxes out...
by SGM
Sat Aug 20, 2016 4:21 am
Forum: Investing - Theory, News & General
Topic: High RMD’s, would you do anything different?
Replies: 54
Views: 5253

Re: High RMD’s, would you do anything different?

I maximized 401k and tIRAs during my working career. About the same time the law was changed so that I was allowed to convert to Roth IRAs I realized my RMDs would be enough to increase my tax rate in retirement compared to the last few years when I worked part time for sure. I began and completed c...

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