Search found 2351 matches

by SGM
Tue Oct 17, 2017 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 38
Views: 4091

Re: Tax Bracket in Retirement

I did my conversions while either working very part time or retired prior to taking SS. However, my tax rates remain high. Also I pay additional Medicare payments related to income. I lowered my taxable dividends somewhat by paying taxes out of a taxable account. However, I keep making money on my t...
by SGM
Mon Oct 16, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: UTMA accounts
Replies: 17
Views: 500

Re: UTMA accounts

I have been trying to get my children to take over their UTMA accounts. I have warned them that if they do not change the account registration, the accounts will revert back into my estate at death. They seem to be too busy working. I cannot transfer the accounts without their signatures either meda...
by SGM
Sun Oct 15, 2017 4:19 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6594

Re: How long for hedonic adaptation to set in?

Hedonic adaptation occurs a few months after the new car smell is gone. :D I have been riding business and first class most of the time since the 1980s. Mostly this was paid for by a business or through frequent flyer mileage. I am more interested in the leg room. I don't fit well in a regular cabin...
by SGM
Fri Oct 13, 2017 7:58 am
Forum: Investing - Theory, News & General
Topic: And the Nobel Memorial Prize in Economic Sciences goes to [Richard Thaler]
Replies: 80
Views: 6444

Re: And the Nobel Memorial Prize in Economic Sciences goes to [Richard Thaler]

The equity premium puzzle during accumulation has always intrigued me. If the market goes low, there are opportunities to buy low. From 1925 to 1995 the equity premium for a $1000 invested in treasuries vs. stocks is a difference of $880,000. I am not cherry picking the numbers but the author who qu...
by SGM
Thu Oct 12, 2017 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: What is the process for liquidating inherited individual stocks?
Replies: 17
Views: 1090

Re: What is the process for liquidating inherited individual stocks?

We are liquidating the estate of a recently deceased relative. Nothing can be done until we get the death certificates. The POA needs the proper form to be declared the executor or whatever term they use. By the way death certificates cost $20 each additional copy in this state. Official copies are ...
by SGM
Thu Oct 12, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: 7702 plan
Replies: 4
Views: 444

Re: 7702 plan

I was disappointed to see that on Jonathan Clements website there is an advertisement for one of these plans. I like a lot of what Clements has written, but this does not seem to be a product that he would endorse. Allowing such an advertisement on your website seems to imply that you approve of the...
by SGM
Thu Oct 12, 2017 4:08 am
Forum: Investing - Help with Personal Investments
Topic: 100% invested, all in, no cash- how do you do it?
Replies: 42
Views: 3479

Re: 100% invested, all in, no cash- how do you do it?

When we both worked we invested all of one paycheck and lived off the other. Later on when I had my own business we would always have the next month's expenses in cash. If we had larger expenses we would sell a position in stocks or bond funds. I also kept some cash aside near the end of the year or...
by SGM
Sat Oct 07, 2017 4:04 pm
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 173
Views: 11918

Re: Dividends vs. Capital Gains for Spending Needs?

The "dividend puzzle "will be with us a long time, also why do investors prefer dividends when capital gains are better when you consider taxation. Reaching for yield can be a disastrous mistake as others have pointed out. It is difficult to understand that capital gains are preferential in taxable ...
by SGM
Fri Oct 06, 2017 4:33 pm
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 173
Views: 11918

Re: Dividends vs. Capital Gains for Spending Needs?

I spend from my dividend pocket and my capital gains pocket. I didn't feel the tax drag of dividends until I sold most of my BRK to become more diversified. Spending only dividends is a way some people discipline their spending. The dividend puzzle has been discussed for a long time. It is good for ...
by SGM
Fri Oct 06, 2017 7:41 am
Forum: Investing - Theory, News & General
Topic: Are stocks going up only because all the alternatives are lousy?
Replies: 45
Views: 4624

Re: Are stocks going up only because all the alternatives are lousy?

Since my guess for the S&P 500 moved from 110th to 33rd in 6 days in the BH contest, it is a sell sign per my acquaintances. :oops: Interest rates are low and that usually means that investors will prefer stocks. The prospect of lower corporate tax rates may continue to help elevate the market. Perc...
by SGM
Mon Oct 02, 2017 8:09 am
Forum: Personal Finance (Not Investing)
Topic: trust issues vs. will
Replies: 2
Views: 288

trust issues vs. will

The future executor of an estate with power of attorney currently will be talking to an attorney shortly. An elderly relative is in a coma and irrationally dissolved a trust against the attorney's advice years ago. The will makes no mention of a trust. Can a trust be created now with the same instru...
by SGM
Mon Oct 02, 2017 7:28 am
Forum: Investing - Theory, News & General
Topic: $10 million+ - Still Working and LBYM
Replies: 162
Views: 16189

Re: $10 million+ - Still Working and LBYM

One problem we do anticipate as we move toward the 8 figure club is an estate tax issue. My previous plan to deal with this issue (which we never expected to have to deal with) was just to give away everything over the estate tax limit. That's really hard to do if you don't have significant money i...
by SGM
Sat Sep 30, 2017 5:24 pm
Forum: Investing - Theory, News & General
Topic: Why do you LBYM? Why do you save and invest?
Replies: 192
Views: 12785

Re: Why do you LBYM? Why do you save and invest?

I wanted to avoid the fate of Shakespeare's Richard the 2nd who said, “I wasted time, and now doth time waste me.”
by SGM
Fri Sep 29, 2017 9:50 am
Forum: Investing - Theory, News & General
Topic: Why do you LBYM? Why do you save and invest?
Replies: 192
Views: 12785

Re: Why do you LBYM? Why do you save and invest?

I learned about compounding at a very early age. While I found a lot of good role models, I also observed and learned the mistakes of others. I repeatedly found ways to increase my human capital while enjoying life along the way. I opted for increased opportunities and experience as opposed to stayi...
by SGM
Tue Sep 26, 2017 9:18 am
Forum: Personal Consumer Issues
Topic: Where do you get your news?
Replies: 131
Views: 8308

Re: Where do you get your news?

The quality of the news has become so poor and biased that it has reignited my long dormant interest in baseball. :D Go Nats.
by SGM
Mon Sep 25, 2017 7:33 am
Forum: Personal Consumer Issues
Topic: The Expert's Dilemma - How can I know I'm getting a good physician without being one myself?
Replies: 125
Views: 8331

Re: The Expert's Dilemma - How can I know I'm getting a good physician without being one myself?

As a retired family physician and gerontologists I referred my patients to specialists who were responsive and communicative to me and would see my patients quickly if I felt it was more urgent. The specialists knew that I would not abuse the privilege by exaggerating the need for an urgent referral...
by SGM
Mon Sep 25, 2017 3:43 am
Forum: Investing - Help with Personal Investments
Topic: Just Getting Started
Replies: 6
Views: 550

Re: Just Getting Started

If you inherit a Traditional, Rollover, SEP, or SIMPLE IRA from a friend or family member, you have several options, depending on whether the account holder was under or over age 70½. I would check with Vanguard or whatever institution you are going to use for the specific rules regarding required w...
by SGM
Sun Sep 24, 2017 4:23 am
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 233
Views: 25181

Re: Calling out the not so rich bogleheads

Commoner OP?. Are we back in merry old England or what? :D

Most of the financial advice I have read was written after the establishment of the American colonies.
by SGM
Sat Sep 23, 2017 3:14 am
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 233
Views: 25181

Re: Calling out the not so rich bogleheads

I have learned a lot from both rich and not so rich BHs although I came to many core BH principles on my own before finding this forum. The wealth or income of a poster is not of concern to me. There are certain problems or issues that transcend differences in wealth and are common to all. There are...
by SGM
Thu Sep 21, 2017 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Advice-Whole life,Vanguard,Roth IRA?
Replies: 16
Views: 809

Re: Investment Advice-Whole life,Vanguard,Roth IRA?

OP you have good instincts to realize these insurance salesmen do not have your best interests at heart. The loans are pretty high and I would pay them off as quickly as possible. Make sure you get the match for your 401k. Try to keep your car running. I would look for tax deductible investments lik...
by SGM
Thu Sep 21, 2017 10:42 am
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1711

Re: IRA to Roth conversion now (age 68) or RMD?

If you are going to be in the same or greater tax rate when you take RMDs it will pay to make Roth conversions. If you pay your taxes out of a taxable account the buying power at the time of conversion will be exactly the same. You don't lose any buying power period. In the 25% tax bracket you have ...
by SGM
Thu Sep 21, 2017 8:00 am
Forum: Local Chapters and Bogleheads Community
Topic: Bogleheads you would most like to meet and why?
Replies: 134
Views: 8874

Re: Bogleheads you would most like to meet and why?

I have been fortunate to meet many BHs at the Philadelphia national meetings and at local meetings. There are a lot of friendly, intelligent, and good humored BHs out there.
by SGM
Thu Sep 21, 2017 7:53 am
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 220
Views: 24005

Re: I won the Lottery. Need sound advice.

OP has shown no discipline in the past. If he takes a lump sum pay off all the debt and learn to live within your means. If the OP does not intend to pay off the debt and cannot change his ways then an annuity would be a safer bet. Get rid of your financial advisor.
by SGM
Wed Sep 20, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security - Applying Online for Age 70 Benefit - Avoiding Retroactive Payments
Replies: 5
Views: 921

Re: Social Security - Applying Online for Age 70 Benefit - Avoiding Retroactive Payments

A friend who just turned 70 in August had to argue with the SS agent to not receive a retroactive payment for the prior 6 months. She was receiving a divorced spouse's benefit since she reached her FRA. This occurred face to face at the local SS office. The agent was insistent that the friend would ...
by SGM
Wed Sep 20, 2017 2:57 am
Forum: Investing - Theory, News & General
Topic: Multiple sources of income - fact or fiction?
Replies: 12
Views: 1939

Re: Multiple sources of income - fact or fiction?

Some rental income requires almost no effort, like a cell tower lease, farmland rental, hunting leases, solar farms or wind farms. Renting apartments or houses requires more effort, but the IRS considers it as passive income unless you spend large amounts of time as a landlord. SS, pensions, and oth...
by SGM
Mon Sep 18, 2017 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: A bit of estate planning
Replies: 10
Views: 1124

Re: A bit of estate planning

In 2018 the gift limit will be $15,000 each or $30,000 for a couple. A 529 can be controlled by the grandparent or parent. You can pay directly tuition or medical bills without limit.
by SGM
Mon Sep 18, 2017 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Psychological effects of Early Retirement in peak earning years.
Replies: 63
Views: 7053

Re: Physiological effects of Early Retirement in peak earning years.

it is hard to imagine just tuning off the lights on my career one day as a physician. After spending most of life studying to become one and working, it is terrifying to just let it go. With my career being so time consuming, I haven't developed as many friends and hobbies as I would like. I feel l...
by SGM
Sun Sep 17, 2017 7:56 am
Forum: Local Chapters and Bogleheads Community
Topic: DC Bogleheads Meeting in Ballston with Sita Slavov
Replies: 23
Views: 1988

Re: DC Bogleheads Meeting in Ballston with Sita Slavov

Thanks Bob, I have already made my decision to delay until 70, but I have referred others to the articles you have cited. A friend who is confused about the subject of when to take SS may attend with me. I discussed this with another friend who is still working past 70 and he tried to keep delaying ...
by SGM
Wed Sep 13, 2017 10:14 am
Forum: Personal Consumer Issues
Topic: Is it really Worth it to brown bag your lunch at work?
Replies: 313
Views: 18199

Re: Is it really Worth it to brown bag your lunch at work?

I brown bagged off and on for many years. I did enjoy occasionally going out with coworkers. In two positions I bought a lot of state of the art equipment and allowed sales persons to take me and others out to lunch. I learned a lot at these lunch meetings and ate at a lot of fun places I would have...
by SGM
Tue Sep 12, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: [WSJ] Your Tolerance for Investment Risk Is Probably Not What You Think
Replies: 49
Views: 5935

Re: [WSJ] Your Tolerance for Investment Risk Is Probably Not What You Think

I have seen several of these risk tolerance surveys through various brokerages and mutual fund companies and don't put much faith in them. Statman makes some good points as to why they are not accurate. I have recently read his latest book Finances for Normal People and found it a good read concerni...
by SGM
Mon Sep 11, 2017 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Variable Percentage Withdrawal -> Before retirement Age
Replies: 35
Views: 3311

Re: Variable Percentage Withdrawal -> Before retirement Age

Mike Piper states it well in today's blog on "The Oblivious Investor", "there is no perfect spending strategy, but there are many perfectly fine spending strategies".
by SGM
Mon Sep 11, 2017 8:58 am
Forum: Personal Consumer Issues
Topic: 24 care home care for family member
Replies: 23
Views: 2274

Re: 24 care home care for family member

I had a professional relationship with a social work group that had a 20+ year history of recommending home care. I referred all of my elderly patients considering home care to this group and they recommended larger companies unless they knew individual care givers quite well. An in-law used a small...
by SGM
Sun Sep 10, 2017 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Variable Percentage Withdrawal -> Before retirement Age
Replies: 35
Views: 3311

Re: Variable Percentage Withdrawal -> Before retirement Age

:P I have found that I am having more difficulty interpreting the written word and attribute it to increased smart phone use and currently the smart phone is shut off but on my desk. The presence of a smartphone, even if turned off , lowers available cognitive capacity, based on new psychological re...
by SGM
Sat Sep 09, 2017 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Anyone using i-orp as a guide for withdrawals?
Replies: 44
Views: 4613

Re: Anyone using i-orp as a guide for withdrawals?

I-orp suggested large conversions over several years. This was just an additional confirmation of what I was already prepared to do. I completed the conversions a little faster than suggested by I-orp. I felt that the tax predictions were lower than I expected. Also withdrawals are more than I need ...
by SGM
Thu Sep 07, 2017 3:01 am
Forum: Personal Finance (Not Investing)
Topic: NYT > Under ‘Observation,’ Some Hospital Patients Face Big Bills
Replies: 23
Views: 2733

Re: NYT > Under ‘Observation,’ Some Hospital Patients Face Big Bills

Having been a physician I am fully aware of these issues. I recently took an elderly relative to the ER three times in the last two weeks. The last ER visit resulted in a week long stay and I was assured that the relative met all the qualifications for admission. I check with the hospitalist daily o...
by SGM
Thu Sep 07, 2017 2:37 am
Forum: Investing - Theory, News & General
Topic: Do retiree BHs actually run down their portfolios?
Replies: 73
Views: 8209

Re: Do retiree BHs actually run down their portfolios?

I have been retired for 3 years and our portfolio is up. I haven't calculated a withdrawal rate and so far and we just take out whatever we need. We have some other income streams outside of the portfolio. I am not opposed to drawing down the portfolio, but have not needed to do that so far. I am de...
by SGM
Wed Sep 06, 2017 5:11 pm
Forum: Investing - Theory, News & General
Topic: Dividends and Withdrawal Rate
Replies: 39
Views: 3293

Re: Dividends and Withdrawal Rate

If you are only withdrawing dividends from the 50% of your portfolio that is in stocks you are in good shape. If you dividend rate is 2% and you are not spending anything from the other 50% in bonds then your withdrawal rate is 1%. The preference for spending only dividends over selling stock for ca...
by SGM
Wed Sep 06, 2017 4:25 am
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2709

Re: Vanguard funds with purchase fees; ETFs without. How come?

When one buys or sells an ETF there is always a purchaser on the other side of the trade regardless of the NAV or the spread. Thus the underlying stock owned by the ETF does not need to be bought or sold. ETFs that are not traded frequently generally have greater spreads from the NAV. If you purchas...
by SGM
Mon Sep 04, 2017 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Social Security analyzer
Replies: 9
Views: 1759

Re: Social Security analyzer

This is the calculator I have used in the past. It recommended a spousal benefit at 66 for the lower earner and both to take our own at age 70. We were under the old rules prior to April 30th 2016. Several other calculators and books have confirmed this strategy as the best for our purposes. While d...
by SGM
Mon Sep 04, 2017 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3692

Re: Jason Zweig's tax bomb example

Be cautious about buying a mutual fund late in the year before capital gains are reported. 40 years ago I bought an active mutual fund and the value of the fund went down and I still had to pay tax on a significant capital gain. At the time I got out of active funds and into very low cost dividend r...
by SGM
Mon Sep 04, 2017 4:19 am
Forum: Investing - Theory, News & General
Topic: Why can't the future of stocks be predicted
Replies: 61
Views: 3392

Re: Why can't the future of stocks be predicted

Is this a Far Side cartoon?
by SGM
Sun Sep 03, 2017 4:24 pm
Forum: Local Chapters and Bogleheads Community
Topic: [Are the Bogleheads] getting less interesting?
Replies: 255
Views: 16939

Re: [Are the Bogleheads] getting less interesting?

I don't recall why the polls were abandoned, but I was not sorry to see them go. I certainly wouldn't base any investment decisions based on polls. Results were seriously statistically flawed. Biased samples, lack of randomness, truthfullness, etc. You might not base decisions on them, but others l...
by SGM
Sun Sep 03, 2017 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Humble dollar article on munis
Replies: 6
Views: 693

Re: Humble dollar article on munis

Being in a high bracket I have muni bonds in taxable. I have no tax deferred accounts. In my Roth accounts, I prefer stock funds over taxable bond funds. I read this blog when it first came out. I like most of what Clements writes, but do not agree with him for my own situation regarding muni bond f...
by SGM
Sun Sep 03, 2017 5:05 am
Forum: Local Chapters and Bogleheads Community
Topic: [Are the Bogleheads] getting less interesting?
Replies: 255
Views: 16939

Re: [Are the Bogleheads] getting less interesting?

I don't recall why the polls were abandoned, but I was not sorry to see them go. I certainly wouldn't base any investment decisions based on polls.
by SGM
Sun Sep 03, 2017 4:39 am
Forum: Investing - Theory, News & General
Topic: Vanguard Speaks Softly but Carries a Big Stick
Replies: 29
Views: 3250

Re: Vanguard Speaks Softly but Carries a Big Stick

I own Vanguard funds because of their low cost and the efficient way they run their funds, not for any special expertise regarding controversial issues.
by SGM
Sat Sep 02, 2017 9:53 am
Forum: Investing - Theory, News & General
Topic: The Stock Market Is Always Risky
Replies: 42
Views: 3402

Re: The Stock Market Is Always Risky

The stock market is always risky, but you will have a much greater difficulty reaching your goals without investing in the stock market. After 35+ years of investing with every paycheck, I have reached my goals early and retired at full retirement age because I liked what I was doing. One should pre...
by SGM
Sat Sep 02, 2017 3:30 am
Forum: Investing - Theory, News & General
Topic: Cant get my head around this..All Bonds in non-taxable OR...
Replies: 23
Views: 3459

Re: Cant get my head around this..All Bonds in non-taxable OR...

I hold some muni bond funds in taxable and some total bond fund in my Roth accounts. Traditional accounts have all been converted. The after tax return on muni funds are better than total bond in taxable at our highest taxable rate. With current tax law our state taxes paid are at least partially de...
by SGM
Fri Sep 01, 2017 7:59 am
Forum: Local Chapters and Bogleheads Community
Topic: [Are the Bogleheads] getting less interesting?
Replies: 255
Views: 16939

Re: [Are the Bogleheads] getting less interesting?

I have retired so the issues that were most important to me have been addressed. I also miss sscritic. I still find it interesting to see what issues others are struggling with.
by SGM
Tue Aug 29, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 156
Views: 25055

Re: $400,000 Roth Conversions Between Ages 66-69?

Medicare looks back to your MAGI as determined two years earlier. So when you are eligible for Medicare at age 65 they look at your MAGI when you were 63. For 2017 they use your MAGI from your 1040 in 2015.
by SGM
Tue Aug 29, 2017 8:54 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 2614
Views: 832272

Re: What Book Are You Currently Reading? Part VI

I just read in one sitting Ethan Frome. I noticed today that it was listed twice in the thread ... Books not to read . The main character is a depressed person and novel has a depressing ending. We recently visited The Mount.. the home built by the author Edith Wharton and previously I had only read...