Search found 1694 matches

by SGM
Fri May 27, 2016 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Should I invest my cash in tax-exempt municipal bond funds?
Replies: 15
Views: 1445

Re: Should I invest my cash in tax-exempt municipal bond funds?

Pay off the mortgage. Invest in a California muni bond fund, limited or intermediate and high yield national funds. Pick what percentage target for each.
by SGM
Fri May 27, 2016 5:32 am
Forum: Investing - Theory, News & General
Topic: WSJ article: Illinois pension fund adopting Boglehead philosophy
Replies: 13
Views: 1615

Re: WSJ article: Illinois pension fund adopting Boglehead philosophy

A few years ago one of my former professors stated how they could do so much better than the average Joe with their endowment. This may have been true at the time. I was duly skeptical then and I think current returns are similar for endowments for pensions and universities that use hedge funds per ...
by SGM
Wed May 25, 2016 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Do Households Save More When the Kids Leave Home?
Replies: 7
Views: 782

Do Households Save More When the Kids Leave Home?

The answer is only a little bit more per the Center for Retirement Research at Boston College. Most of the new found cash is spent.


The brief and full study can be found here: http://crr.bc.edu/briefs/do-households- ... he-kids-le
by SGM
Wed May 25, 2016 8:22 am
Forum: Investing - Help with Personal Investments
Topic: how to utilize my annuity in portfolio allocation
Replies: 21
Views: 1183

Re: how to utilize my annuity in portfolio allocation

We have annuity income from a pension, TIAA-CREF annuity, and a spousal SS benefit. I don't include these in my AA. However, our withdrawal rate is lower from our portfolio. We do feel that we can take a little more risk with the portfolio, because a lot of our expenses are covered by these annuitie...
by SGM
Tue May 24, 2016 8:28 am
Forum: Personal Finance (Not Investing)
Topic: 62 later this year... social security?
Replies: 28
Views: 2102

Re: 62 later this year... social security?

We are getting the spousal benefit before the deadline. I was not in favor of the change, but saw it coming from the attitudes expressed by presenters at the social security retirement research consortium. It is true that the husband will not hear the wife complain that he did not delay SS until 70 ...
by SGM
Tue May 24, 2016 1:16 am
Forum: Personal Finance (Not Investing)
Topic: 62 later this year... social security?
Replies: 28
Views: 2102

Re: 62 later this year... social security?

We are delaying both our own benefits until 70. We can afford it and don't miss the extra income. Investments have done well and total wealth has not gone down while waiting. Getting 75% more of a cost of living adjusted income at 70 is more important. We think of SS as insurance. It is the best inf...
by SGM
Mon May 23, 2016 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Need Moral Support for FA Breakup!
Replies: 68
Views: 4695

Re: Need Moral Support for FA Breakup!

It has been said many times...."just get off the bus Gus. Make a new plan Stan".

Congrats on your move. :sharebeer
by SGM
Sun May 22, 2016 4:39 am
Forum: Investing - Theory, News & General
Topic: preffered stock ETFs for income during retriemt
Replies: 7
Views: 785

Re: preffered stock ETFs for income during retriemt

Common stock dividends must be axed before anything can be done to lower preferred stock dividends. If the company breaks up bond holders get paid before preferred stock holders. Preferred stocks tend to trade in a narrower range. Preferred stock funds and ETFs tend to have a mixture of qualified an...
by SGM
Sat May 21, 2016 3:38 pm
Forum: Investing - Theory, News & General
Topic: Is there a such thing as a blue collar Boglehead?
Replies: 149
Views: 11729

Re: Is there a such thing as a blue collar Boglehead?

I agree that stating "It's only $10,000," is silly. Just do your BH thing regardless of net worth. BHs have higher net worth than the general public because they pay themselves first, stay with a plan and keep costs low. Somebody is always going to have more than you. Comparing yourself to...
by SGM
Sat May 21, 2016 3:00 am
Forum: Personal Finance (Not Investing)
Topic: Physician Retirement Savings
Replies: 212
Views: 20870

Re: Physician Retirement Savings

In certain states homesteads are exempt from malpractice lawsuits. This may be an incentive for physicians in high risk specialties to spend more on homes. I know of a high net worth non-physician who moved into an expensive home in Florida prior to being sued. It was legal apparently. Gifting to ch...
by SGM
Fri May 20, 2016 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement withdrawal strategies for high net worths?
Replies: 16
Views: 2584

Re: Retirement withdrawal strategies for high net worths?

High net worth individuals may never have to tap a Roth account. Since they have a reduced need to take the income, they can take advantage of a long horizon of tax free growth. High net worth individuals may be better candidates for large Roth conversions than those in middle and lower income taxpa...
by SGM
Fri May 20, 2016 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: "Does delaying Social Security make sense?"
Replies: 12
Views: 1552

Re: "Does delaying Social Security make sense?"

The surviving spouse can receive full benefits at full retirement age for survivors or reduced benefits as early as age 60. This has nothing to do with when the surviving spouse takes her own benefit.
by SGM
Fri May 20, 2016 7:21 am
Forum: Personal Finance (Not Investing)
Topic: Retirement withdrawal strategies for high net worths?
Replies: 16
Views: 2584

Re: Retirement withdrawal strategies for high net worths?

I would convert as much of the 401k to a Roth IRA as possible. The idea is to decrease your taxable account. Maybe I would move to a state that doesn't tax the conversions temporarily. Even if the tax rate is a little higher than your tax rate at full retirement or after RMDs start you could come ou...
by SGM
Thu May 19, 2016 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: Is my Financial Advisor worth his salt?
Replies: 56
Views: 3248

Re: Is my Financial Advisor worth his salt?

You are putting money down a rat hole. Ditch the advisor. I contributed to non- deductible traditional IRAs. When I became eligible to convert to Roth IRAs I began the process over 5 years until I now have only Roth IRAs and taxable. Taxes were paid out of a taxable account. Currently you are allowe...
by SGM
Thu May 19, 2016 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Special Considerations for High Net Worth? Advisor?
Replies: 40
Views: 2410

Re: Special Considerations for High Net Worth? Advisor?

Many of us have gone from LNW to HNW by avoiding advisors. Cost matters big time. Anything you save on expense fees and advisor fees will go to increasing your portfolio. The Labor Dept estimates 1% in additional fees over a 35 year career will decrease your portfolio by 28%. I would suggest you wil...
by SGM
Thu May 19, 2016 4:28 pm
Forum: Investing - Theory, News & General
Topic: Is anyone here currently getting an annuity payout?
Replies: 19
Views: 2101

Re: Is anyone here currently getting an annuity payout?

DW's TIAA-CREF annuity is a combination of traditional and a variable annuity. The payments come on time. Per others with longer experience it has been a good deal. The CREF stock portion has gone up considerably and the total is quite generous because of the high growth in the investment. In 4 mont...
by SGM
Thu May 19, 2016 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9276

Re: Take my SS at 62 or wait?

Retired almost 2 years and delaying SS. Portfolio is up since retirement. It is a function of the size of your portfolio, returns and expenses. We aren't denying ourselves anything. I definitely vote for delaying SS if your health is good and you can afford it. I enjoy reading the different points o...
by SGM
Thu May 19, 2016 4:11 am
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 233
Views: 207

Re: Pride in no inheritance to kids?

I am planning on leaving an inheritance. Kids are working hard and I have been funding a Roth IRA for each of them since they first received any earned income. They save a portion of their incomes and have pride in working. Living expenses are a lot higher than when I was first out of school and wor...
by SGM
Tue May 17, 2016 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Beyond Retirement. Where to put extra cash?
Replies: 6
Views: 1510

Re: Beyond Retirement. Where to put extra cash?

If you are planning to leave the job soon and have money to spare it seems like a great time to pump as much into the 401k as possible ( assuming you won't be going to a job with a match where you can max it later this year). Just put it into the s&p 500 fund (.35% is pretty good) or even a mon...
by SGM
Tue May 17, 2016 4:02 am
Forum: Investing - Help with Personal Investments
Topic: Pension or Lump Sum?
Replies: 11
Views: 1045

Re: Pension or Lump Sum?

immediateannuities.com gives an estimate of $860 a month for an SPIA with joint survivorship no period certain for a lump sum of $195,000 taken in 3 months. The 4% rule would allow you to take out $650 a month initially from the lump sum. The 4% rule is just a guideline. You would also have to manag...
by SGM
Mon May 16, 2016 4:00 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20849

Re: Rich But Middle Class

Once you cut back to the physician income alone of 350k how are you going to pay for current expenses of 320k and then the additional private school tuition? You will have to draw down from your taxable accounts to keep up with expenses if they remain at the current level plus tuition. You will be a...
by SGM
Sun May 15, 2016 10:27 am
Forum: Investing - Theory, News & General
Topic: Living with the 4% Rule
Replies: 19
Views: 2498

Re: Living with the 4% Rule

2) But, given that Roth IRA's money is NOT subject to RMD's requirement, a person could do Roth conversion of his Trad. 401K's money and put the money into Roth IRA. Hence, he could reduce the amount of money subject to RMD. And, if a person Roth converted all his Trad. 401K money before RMD kicked...
by SGM
Thu May 12, 2016 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9276

Re: Take my SS at 62 or wait?

I would delay and play it by ear and see how your health is in a few years. If you have the resources to live well without SS then I would treat it as an insurance policy for not outliving your assets. The higher basis achieved by waiting means that you will get larger cost of living adjustments. Yo...
by SGM
Thu May 12, 2016 3:48 am
Forum: Investing - Help with Personal Investments
Topic: Social Security numbers right ?
Replies: 23
Views: 3816

Re: Social Security numbers right ?

I used the online social security estimator on the SS website prior to my FRA. The estimates were consistent as the years led up to my FRA. My estimates of future earnings were accurate. I filed and suspended one year after my FRA. DW received a spousal benefit which was 2.3% higher than what I expe...
by SGM
Wed May 11, 2016 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Edward Jones out of the 401K business leaving us hanging...
Replies: 20
Views: 3181

Re: Edward Jones out of the 401K business leaving us hanging...

Have you looked at the strategy of the higher earner of the two delaying SS until 66 or 70? Do you understand how SS goes up with age of filing? Have you had any room to cut back expenses to save something in your taxable account while you are still working?
by SGM
Tue May 10, 2016 2:36 am
Forum: Personal Finance (Not Investing)
Topic: Any Farmers? Question about Leasing Land
Replies: 12
Views: 2064

Re: Any Farmers? Question about Leasing Land

We are not in the Midwest, however, we have found land leasing to be a steady source of additional income for the last 25 years. Fortunately, we have a good family operator who have been farming in this area for many generations. It is a mutually beneficial arrangement. Other additional income sourc...
by SGM
Mon May 09, 2016 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Rollover from Fido --> VG: how much red tape is involved?
Replies: 11
Views: 797

Re: Rollover from Fido --> VG: how much red tape is involved?

I transferred my solo 401k to an IRA at Vanguard when I retired. I sold everything in the Fidelity account. There also was a 3 way phone call between Fido, Vanguard and myself. It went smoothly.

It would have been simpler if the transfer was from IRA to IRA.
by SGM
Sun May 08, 2016 2:36 am
Forum: Investing - Help with Personal Investments
Topic: Please Help: Have Advisor, Would Rather Have Gains
Replies: 19
Views: 2263

Re: Please Help: Have Advisor, Would Rather Have Gains

You don't need to pay someone for AUM. I would transfer the account in kind to Vanguard and maybe sell some of the stocks and invest the proceeds into the Vanguard total stock market index. You are making 1.05% right off the bat by getting out from under an advisor. You are about 25% in cash already...
by SGM
Sun May 08, 2016 2:04 am
Forum: Investing - Theory, News & General
Topic: Indexed annuities
Replies: 32
Views: 2127

Re: Indexed annuities

Why would the industry change the name from equity indexed annuities to fixed indexed annuities if they didn't have something to hide? I don't accept bad chicken dinner invitations. Get in writing from the insurance salesman as to why this product is appropriate for you. I cannot foresee any circums...
by SGM
Sat May 07, 2016 4:33 am
Forum: Investing - Help with Personal Investments
Topic: Moving Edward Jones to Vanguard
Replies: 40
Views: 3686

Re: Moving Edward Jones to Vanguard

Congrats for getting out of EJ. I didn't know Sempra Energy still existed. I owned some back in my drip days. If you don't know the basis and the stock is all long term you could donate a little bit each year if you have some charities you like. Another option is to keep the stock and let someone in...
by SGM
Fri May 06, 2016 8:16 pm
Forum: Personal Consumer Issues
Topic: how much cash do you carry in your wallet?
Replies: 152
Views: 13838

Re: how much cash do you carry in your wallet?

I need cash for small purchase such as coffee and bagels and to more quickly leave a restaurant. Some gas stations charge more for credit card purchases. A few other places do not take cash or charge more for cc purchases. Lunch or dinner at the local Lodge costs less for cash. Some places run by vo...
by SGM
Thu May 05, 2016 4:11 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity or Vanguard
Replies: 89
Views: 6655

Re: Fidelity or Vanguard

I have received wrong information from a retirement expert at Fidelity and cold calls from a sales rep. The customer service I have received at Vanguard has generally been better. Unfortunately my excellent Vanguard personal rep has been promoted, but the new guy seems eager and competent. I receive...
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: 1727

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: 2799

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: 2036

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: 2196

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: 777

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: 1928

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: 1928

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: 107
Views: 9541

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: 2762

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: 4226

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: 5395

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: 595

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: 4049

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: 372
Views: 56364

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: 3703

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: 3703

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: 1003

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.

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