Search found 2250 matches

by SGM
Fri Jun 23, 2017 2:57 am
Forum: Investing - Help with Personal Investments
Topic: ROTH conversion
Replies: 12
Views: 1062

Re: ROTH conversion

Your purchasing power does not change at the time of conversion if you are paying taxes at the same rate pre and post RMDs and paying the taxes from your taxable account. So the conversion is a wash at the time you actually convert. You will also be decreasing your taxable account by $41k saving ong...
by SGM
Thu Jun 22, 2017 7:55 am
Forum: Investing - Help with Personal Investments
Topic: 500K Retirement Account Milestone
Replies: 27
Views: 4395

Re: 500K Retirement Account Milestone

2008 was just dandy if you were a buyer of stocks. Downturns are not a problem if you continue to invest and are far from retirement
by SGM
Wed Jun 21, 2017 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 1067

Re: 20 pct bonus on fixed index annuity

A relation through marriage tried to pitch me a fixed index annuity once. The first red flag was when he said," I am going to tell you about this wonderful product, but you have to promise me you won't turn around and buy it from someone else."
by SGM
Tue Jun 20, 2017 4:34 am
Forum: Investing - Theory, News & General
Topic: Do Bonds have a place if basic expenses are covered by income streams?
Replies: 69
Views: 3513

Re: Do Bonds have a place if basic expenses are covered by income streams?

There are a variety of reasons to want to preserve a portfolio. When I was in the accumulation phase I saw no reason to have bonds. Now that I am no longer accumulating assets preservation of my portfolio is a goal.
by SGM
Tue Jun 20, 2017 4:12 am
Forum: Investing - Help with Personal Investments
Topic: Collecting Dividends, Waiting for Market Drop?
Replies: 25
Views: 1878

Re: Collecting Dividends, Waiting for Market Drop?

I was 100% in the stock market until 5 years prior to retirement. I reinvested dividends until retirement and am exceedingly pleased with the results. My advice is to be in the market all the time regardless of valuations.
by SGM
Mon Jun 19, 2017 7:55 am
Forum: Investing - Theory, News & General
Topic: Do Bonds have a place if basic expenses are covered by income streams?
Replies: 69
Views: 3513

Re: Do Bonds have a place is basic expenses covered by income streams?

Yes we have some bond funds although we have sufficient income streams for expenses. But I am trying to spend more than what we need including certain charitable donations. So why not have a little bit in bonds that you can take out of the portfolio in a downturn. We are still at 70% stock funds whi...
by SGM
Mon Jun 19, 2017 4:19 am
Forum: Investing - Help with Personal Investments
Topic: A slice and dice question
Replies: 9
Views: 997

Re: A slice and dice question

I only sell small amounts yearly in taxable accounts in our effort to simplify. We are limited in the effort due to taxation issues. We do not reinvest dividends any longer but transfer them into checking accounts. Taxes cannot be ignored so we have to live with the additional complexity of multiple...
by SGM
Sat Jun 17, 2017 3:25 am
Forum: Personal Finance (Not Investing)
Topic: Who takes financial chances and why is this forum so financially conservative?
Replies: 139
Views: 11907

Re: Who takes financial chances and why is this forum so financially conservative?

Those who don't have sufficient income streams in retirement or very large portfolios are necessarily conservative when it comes to safe withdrawal rates. I also think that fear of large medical costs might cause many to choose a lower SWR. I don't think most BHs are too conservative when I compare ...
by SGM
Fri Jun 16, 2017 10:55 am
Forum: Investing - Theory, News & General
Topic: Anyone else gotten totally bored with investing?
Replies: 101
Views: 9074

Re: Anyone else gotten totally bored with investing?

What keeps me interested is estate and tax planning and the financial education of my grown offspring. Some of you BH authors need to get cracking publishing new books because I have pretty much read the all. :)
by SGM
Thu Jun 15, 2017 8:41 am
Forum: Investing - Theory, News & General
Topic: Roth 401k > Traditional 401k
Replies: 58
Views: 3284

Re: Roth 401k > Traditional 401k

My understanding is that the authors of the study aren't saying that Roth 401ks are better. They are saying that most people will pick a rule of thumb for saving and if they follow that rule of thumb they are actually saving less by putting the sum into a traditional 401k than a Roth 401k. The autho...
by SGM
Wed Jun 14, 2017 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: retitling property
Replies: 5
Views: 420

Re: retitling property

The property is in the name of the LLC. I will probably speak with the attorney that set up the LLC. Thanks for the comments.
by SGM
Wed Jun 14, 2017 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: retitling property
Replies: 5
Views: 420

retitling property

A family member wants out of an LLC that owns a house and will receive cash. Can one retitle a house without the assistance of an attorney?
by SGM
Tue Jun 13, 2017 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Should equals take SS at FRA or Early to preserve portfolio?
Replies: 30
Views: 2576

Re: Should equals take SS at FRA or Early to preserve portfolio?

If a couple are both at similar ages and similar incomes then delaying until 70 for one of the couple is still optimal in terms of a widow's benefit. Looking at the difference between the second spouse claiming at 66 vs. 70 would be a difference of about $2500 monthly vs. $3300 monthly. The cost of...
by SGM
Tue Jun 13, 2017 7:55 am
Forum: Investing - Help with Personal Investments
Topic: Should equals take SS at FRA or Early to preserve portfolio?
Replies: 30
Views: 2576

Re: Should equals take SS at FRA or Early to preserve portfolio?

If a couple are both at similar ages and similar incomes then delaying until 70 for one of the couple is still optimal in terms of a widow's benefit. Looking at the difference between the second spouse claiming at 66 vs. 70 would be a difference of about $2500 monthly vs. $3300 monthly. The cost of ...
by SGM
Tue Jun 13, 2017 4:21 am
Forum: Investing - Theory, News & General
Topic: Favorite Feature of Vanguard Website?
Replies: 64
Views: 4685

Re: Favorite Feature of Vanguard Website?

I find the website easy to use and prefer it over Fidelity's website. I would like to see an estimated income table for the next year and broken down monthly for all MFs, ETFs and stocks.
by SGM
Mon Jun 12, 2017 4:51 pm
Forum: Investing - Help with Personal Investments
Topic: Should equals take SS at FRA or Early to preserve portfolio?
Replies: 30
Views: 2576

Re: Should equals take SS at FRA or Early to preserve portfolio?

Delay of SS alone will help preserve our portfolio. I retired at 66 and am delaying SS until 70. The 4 years of using my portfolio is small compared to many years of higher SS income with lower withdrawals needed after taking a larger SS after 70. I am insuring against longevity. Converting traditio...
by SGM
Mon Jun 12, 2017 3:48 am
Forum: Investing - Theory, News & General
Topic: Does anyone feel they missed out on AMZN, NFLX,TSLA?
Replies: 103
Views: 6539

Re: Does anyone feel they missed out on AMZN, NFLX,TSLA?

Well I own these in the TSM but I don't do much purchasing of individual stocks anymore. Mostly I winnow down my long held individual purchase with large capital gains with one eye on the tax man. I will be seeing two brothers who still actively invest in individual stocks which they have been doing...
by SGM
Sun Jun 11, 2017 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Investment crossroads, which path to pick....please critique.
Replies: 11
Views: 1519

Re: Investment crossroads, which path to pick....please critique.

Since you are married you can contribute each year to a Roth IRA for your spouse.

From 57 until taking SS I would consider making some Roth conversions from your 401k.
by SGM
Thu Jun 08, 2017 1:47 pm
Forum: Investing - Theory, News & General
Topic: Retirees: What are you doing about withdrawing?
Replies: 31
Views: 4155

Re: Retirees: What are you doing about withdrawing?

TIAA-CREF account was annuitized. Roth accounts are reinvested and untouched. All dividends and mutual fund capital gains are put into checking. Occasional sales of long held stocks are used for large purchases or other obligations. Other income streams go into a checking account for disbursement. W...
by SGM
Wed Jun 07, 2017 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Would You Sell Berkshire?
Replies: 17
Views: 1323

Re: Would You Sell Berkshire?

I would get out of Edward Jones then I would sell half of the Berkshire Hathaway. We have held Berkshire Hathaway for a long time then sold almost all of it some years ago. It became too large a part of our portfolio. We have tried to keep all individual stocks below 1% of our portfolio per our curr...
by SGM
Wed Jun 07, 2017 4:41 am
Forum: Investing - Help with Personal Investments
Topic: Benefits of waiting to convert $4,000,000 in IRAs into Roth
Replies: 41
Views: 4586

Re: Benefits of waiting to convert $4,000,000 in IRAs into Roth

sgm, thank you for your response. My responses to your post are below: I converted all of my tax deferred accounts to Roth accounts over a period of 6 years. I am benefiting from slightly less taxes on my taxable portfolio and in the future I will benefit much more in not having to pay taxes on RMD...
by SGM
Wed Jun 07, 2017 4:02 am
Forum: Personal Finance (Not Investing)
Topic: Teachers: what are your best personal finance tips?
Replies: 78
Views: 6986

Re: Teachers: what are your best personal finance tips?

DW had a TIAA-CREF plan for 4 years at a university. We are very pleased with the monthly payout and marvel at how well those who stuck with the university for 25 years must be doing. It has some tontine-like features. Payments can vary in part based on divergence between predicted and realized of m...
by SGM
Mon Jun 05, 2017 11:32 am
Forum: Investing - Help with Personal Investments
Topic: VCLT Long Term Corp v. VTEB Municipal
Replies: 9
Views: 675

Re: VCLT Long Term Corp v. VTEB Municipal

VCLT dividends are not qualified so they are taxed at your highest marginal rate, not at the rate that qualified stock dividends are taxed. I own some intermediate corporate Vanguard ETF in a Roth. You could own the long term corporate bond ETF in a tax advantaged account. It seems to be more intere...
by SGM
Mon Jun 05, 2017 7:39 am
Forum: Investing - Help with Personal Investments
Topic: Benefits of waiting to convert $4,000,000 in IRAs into Roth
Replies: 41
Views: 4586

Re: Benefits of waiting to convert $4,000,000 in IRAs into Roth

Do not pay taxes from your tIRA for the conversion. Your $4M will continue to grow instead of tax deferred it will grow tax free. One of the questions is with a lower amount in taxable will you have an advantage. If you go from 39.6 to 35% it may very well be an additional benefit of converting earl...
by SGM
Sun Jun 04, 2017 4:21 am
Forum: Personal Finance (Not Investing)
Topic: What Will Home Care Cost?
Replies: 25
Views: 2401

Re: What Will Home Care Cost?

We have 24 hour care for a centenarian who lives in her own home. Most of the time the geriatric aides sit around watching TV. The cost is at least double NH care. Assisted living facilities are less expensive than nursing homes. However, many assisted living facilities will not take care of someone...
by SGM
Sat Jun 03, 2017 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: KF's Worst Case Retirement Plan [KlangFool's]
Replies: 252
Views: 17081

Re: KF's Worst Case Retirement Plan [KlangFool's]

This is how I read your post. If you can continue to work at the same job your assets will go up $100k per year including additional savings and portfolio earnings. The fact that you won't be drawing down while you are working makes gives you additional upside. above the $100k. If your yearly expens...
by SGM
Sat Jun 03, 2017 2:13 am
Forum: Investing - Theory, News & General
Topic: How do you fight the urge to micromanage?
Replies: 57
Views: 4166

Re: How do you fight the urge to micromanage?

Tinkering with your portfolio gives you the illusion that you have some control over outcomes. You do not have control over the outcomes. Markets moves are random. Reinvest dividends and invest on a regular basis regardless of market valuations. Low market valuations are your friend when you are far...
by SGM
Sat Jun 03, 2017 1:58 am
Forum: Investing - Theory, News & General
Topic: Murphy's Law Of Retirement
Replies: 33
Views: 5184

Re: Murphy's Law Of Retirement

Increase your fixed income and lower your stock market allocation. Delaying SS is helpful. The problem is an extended bear market early on in retirement. I would never completely liquidate my stock market allocation at any time in retirement. I have a friend who is not yet retired at 71 who sold all...
by SGM
Fri Jun 02, 2017 11:04 am
Forum: Investing - Theory, News & General
Topic: Got a Question for the Experts Panel at the Bogleheads Conference?
Replies: 18
Views: 2072

Re: Got a Question for the Experts Panel at the Bogleheads Conference?

For Allan Roth: Has he found a diversified international bond fund with low costs? What bond funds is he recommending for tax advantaged accounts?
by SGM
Thu Jun 01, 2017 4:42 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1351
Views: 233690

Re: What are you up YTD? [Year To Date]

Roth is up over 6%. Taxable accounts are up a little less.

The Roth is accurate. Taxable account includes withdrawals and additions.
by SGM
Wed May 31, 2017 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Choose muni or index to avoid SS tax
Replies: 4
Views: 513

Re: Choose muni or index to avoid SS tax

Muni bond interest is included in your MAGI, modified adjusted gross income and will affect the taxes on your social security income.
by SGM
Wed May 31, 2017 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Senility: How do you plan on protecting your money when you lose your mental capacities?
Replies: 72
Views: 5811

Re: Senility and Seductresses: How do you plan on protecting your money when you lose your mental capacities?

Hopefully our children will be able to help. I am making some progress in training them. One has bought into simplification and low cost investments. I will also annuitize income as we get older. At some point we may use Vanguard' as an advisor. Currently a local bank trust department has been manag...
by SGM
Wed May 31, 2017 4:07 am
Forum: Investing - Help with Personal Investments
Topic: Really trying to understand no bonds in taxable
Replies: 46
Views: 3137

Re: Really trying to understand no bonds in taxable

Stop loss orders are a good way to lose money. Rather than use stop loss or selling when the market is down, determine what is an AA you can tolerate before selling in a down market. I looked at stop loss orders 40 years ago and determined I would never use one.
by SGM
Tue May 30, 2017 10:19 am
Forum: Personal Consumer Issues
Topic: How long before I can cut down a branch with a nesting bird
Replies: 18
Views: 1961

Re: How long before I can cut down a branch with a nesting bird

I get what I think are barn swallows nesting in a porch or a portico. I used to try to discourage them, but now I put up with the droppings and hope they help keep the bugs down. Ask me about my black vulture chicks in an old horse stall that are now about a month old and won't leave until 3 months ...
by SGM
Mon May 29, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: Credit unions are non-profit, how come they do not dominate over banks???
Replies: 73
Views: 5381

Re: Credit unions are non-profit, how come they do not dominate over banks???

I had good experiences with CUs in the 70s and 80s. I had an inexpensive car loan and good rates on CDs and accounts. Now I use a local bank that had an excellent low cost business account and personal accounts with very low expenses, especially for seniors. I don't borrow anymore so I don't look at...
by SGM
Mon May 29, 2017 8:12 am
Forum: Investing - Help with Personal Investments
Topic: Need help with Retirement planning
Replies: 6
Views: 774

Re: Need help with Retirement planning

You should not mind stocks being down while you are accumulating. So 100% stocks may be appropriate. It was the course I chose while accumulating. Age 57 is early to buy an annuity. There are good and bad annuities so study up on this. The only ones I am considering buying are SPIAs some time after ...
by SGM
Sun May 28, 2017 7:48 pm
Forum: Investing - Theory, News & General
Topic: DON'T pay off your mortgage; instead reduce Sequence of Return Risk
Replies: 206
Views: 15354

Re: DON'T pay off your mortgage; instead reduce Sequence of Return Risk

I started out 100% in stocks early on and did not waiver from that AA until a few years prior to retirement. After age 40 I began to pay down my mortgage quickly. The mortgage then was at a higher interest rate. I have always felt it was a mistake to not be 100% in stocks early in the accumulation p...
by SGM
Sun May 28, 2017 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Idea for Fun Money Account, Good, Bad or Ugly?
Replies: 32
Views: 1868

Re: Idea for Fun Money Account, Good, Bad or Ugly?

My fun fund by which I mean how I strayed from my plan to move assets into a 3 fund type portfolio with small amounts has been limited to only a few stocks and funds. Mostly I stuck with my plan. What I put into my fun fund within the last 10 years include some funds and industries that I felt were ...
by SGM
Sun May 28, 2017 4:07 am
Forum: Investing - Help with Personal Investments
Topic: Unwinding a maturing UTMA to pay least taxes
Replies: 18
Views: 1157

Re: Unwinding a maturing UTMA to pay least taxes

I waited until the kids were out of university to have them tax gain harvest. They paid kiddie tax on dividends up until then. If you have leeway as to when to convert to Roth accounts you might be able to fit some tax gain harvesting in.
by SGM
Sat May 27, 2017 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity post retirement
Replies: 16
Views: 1036

Re: Annuity post retirement

Dear Bogleheads, My in laws, who are in the mid-80s and are living in NJ, received the advice of a financial advisor to buy an annuity for their life savings (approx. $100,000) which are currently in IRA. Since I don't know anything about annuities, I decided to post about it here. What are the up ...
by SGM
Fri May 26, 2017 3:25 pm
Forum: Investing - Theory, News & General
Topic: How dividends become irrelevant?
Replies: 146
Views: 7370

Re: How dividends become irrelevant?

Capital gains are not low hanging fruit. You have to think about selling a position or part of a position. Rationally when not considering taxes, dividends and capital gains are the same. In a taxable account one may not prefer the most rational option which requires additional decision making as t...
by SGM
Fri May 26, 2017 4:12 am
Forum: Investing - Theory, News & General
Topic: How dividends become irrelevant?
Replies: 146
Views: 7370

Re: How dividends become irrelevant?

Capital gains are not low hanging fruit. You have to think about selling a position or part of a position. Rationally when not considering taxes, dividends and capital gains are the same. In a taxable account one may not prefer the most rational option which requires additional decision making as to...
by SGM
Thu May 25, 2017 8:02 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions Post Retirement
Replies: 19
Views: 1904

Re: Roth Conversions Post Retirement

I kept the tax rates when I start RMDs uppermost in mind for conversion decisions. At 70 1/2 I would have SS+RMDs+increasing dividend and other income streams. The tax cost at age 70 1/2 and older would be quite high. The tax cost at the time when one of us is a single payer would be higher yet. I a...
by SGM
Wed May 24, 2017 7:37 am
Forum: Investing - Theory, News & General
Topic: The dot com "do over" bull market?
Replies: 82
Views: 7953

Re: The dot com "do over" bull market?

While others were investing in dot.coms I was observing indications we were in a bubble. I was often the recipient of requests to fund new ventures with no record of any income by a new acquaintance. Another made headlines in the WSJ and sold his hot new company for $1 billion in stock. Before he wa...
by SGM
Tue May 23, 2017 2:30 am
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 10028

Re: The Case for Dividend Stocks in Retirement (article)

Nedsaid, Are you thinking about SPIAs after age 70 or 75 or maybe a ladder of them? 5.5 or 6.5% payout may lower the pressure on the rest of your portfolio. As an aside: I am going to purchase the following which explores rational vs. "normal" investor's behavior. From reviewing a few cha...
by SGM
Tue May 23, 2017 2:14 am
Forum: Investing - Help with Personal Investments
Topic: I admit, I give up [need strategy for getting back in]
Replies: 33
Views: 5165

Re: I admit, I give up [need strategy for getting back in]

I would pay off the house and put the rest into a 3 fund portfolio with whatever asset allocation you desire. In my 30s I was 100% in the stock market and did not add bond funds until a few years prior to retirement. It is a big mistake to get out of the market when you are young. It is a big mistak...
by SGM
Mon May 22, 2017 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Net worth is overrated
Replies: 76
Views: 9375

Re: Net worth is overrated

I am more interested in how much income I can generate in retirement and what my projected expenses are than in net worth. My net worth is increased by real estate, but the real estate requires paying certain expenses and taxes and generates some income too. I don't use net worth in my calculations....
by SGM
Mon May 22, 2017 7:35 am
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 10028

Re: The Case for Dividend Stocks in Retirement (article)

Nedsaid, Are you thinking about SPIAs after age 70 or 75 or maybe a ladder of them? 5.5 or 6.5% payout may lower the pressure on the rest of your portfolio. As an aside: I am going to purchase the following which explores rational vs. "normal" investor's behavior. From reviewing a few chap...
by SGM
Mon May 22, 2017 7:25 am
Forum: Investing - Help with Personal Investments
Topic: Investing FOR Retirement vs Investing IN Retirement
Replies: 25
Views: 2486

Re: Investing FOR Retirement vs Investing IN Retirement

Spending dividends is rationally not different than selling assets for income used in retirement, taxes aside. Some don't sell assets and try to live off of dividends and interest. There is rationally no difference between the spending of capital gains vs. dividends, but some only spend the income a...
by SGM
Sun May 21, 2017 4:19 pm
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 10028

Re: The Case for Dividend Stocks in Retirement (article)

For those who don't reach for yield, taking out only dividends can prevent people who may have some difficulty controlling their spending in retirement from running out of money. This is not the most rational way of investing as, taxes aside, there is no difference between your assets going up $1000...

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