Search found 2204 matches

by SGM
Mon May 22, 2017 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Net worth is overrated
Replies: 48
Views: 5103

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: 80
Views: 8221

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: 21
Views: 1630

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: 80
Views: 8221

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...
by SGM
Sun May 21, 2017 11:14 am
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 81
Views: 8730

Re: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)

Given the likelihood that at least one of us will live past 90, I think we will be preserving our legacy by delaying to 70. We did Roth conversions prior to age 70 and will have no RMDs to deal with. Although we do not fit the profile of those who would benefit from annuitizing I am still considerin...
by SGM
Thu May 18, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5436

Re: Convince me to get back into stocks!

Bill Bernstein said last year he regrets not being more fully invested in the stock market as a young man.

You may have to learn by experience. Good luck.
by SGM
Wed May 17, 2017 8:25 am
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3919

Re: Delay SS, but claim if market plunges

I would plan to have some bond or cash available for such a scenario to avoid the permanent decrease in SS payout. Part of my plan was a 7 year savings annuity which paid 4% tax deferred and is currently paying about 3.5%. I never annuitized the account. Unfortunately rates have been lower since I s...
by SGM
Sun May 14, 2017 3:32 pm
Forum: Personal Consumer Issues
Topic: Check engine light comes on, need advice
Replies: 27
Views: 1117

Re: Check engine light comes on, need advice

I had a free check at Autozone. Then I looked up the code on the internet. The most common problem is the gas cap. I bought a new gas cap from the dealer. I disconnected the battery and reconnected it but the engine light came back in a day. I went to a company that was certified in my state to fix ...
by SGM
Sun May 14, 2017 8:37 am
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 103
Views: 23729

Re: Master thread for Washington DC Area Bogleheads

I am hoping to make the meeting. I may leave a little early for roast lamb and to see the dancers at St. Luke's in Potomac.
by SGM
Sun May 14, 2017 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else dial down retirement savings?
Replies: 32
Views: 5033

Re: Anyone else dial down retirement savings?

I found tax advantaged accounts to be very advantageous. I maxed 401ks and added to non-deductible tIRAs. Later I did back door Roth IRAs. When I paid off my mortgage early I did it out of a taxable account. Later when income went down after retirement I converted the traditional accounts. Are you a...
by SGM
Sun May 14, 2017 3:17 am
Forum: Investing - Theory, News & General
Topic: Praise for Roth IRA conversions in retirement, a bonus for early retirees
Replies: 11
Views: 1919

Re: Praise for Roth IRA conversions in retirement, a bonus for early retirees

I have used the long form for I-orp. It is a good tool, but I don't need to be so accurate having already made my decisions. I have made many decisions without complete information. It has worked out over a lifetime so I have learned to accept a modicum of uncertainty. Knowing that a Roth conversion...
by SGM
Sun May 14, 2017 2:58 am
Forum: Personal Finance (Not Investing)
Topic: How Old Habits Can Sabotage Retirement
Replies: 51
Views: 7025

Re: How Old Habits Can Sabotage Retirement

I have discussions with fellow retirees about the difficulty in finding things to spend money on. We all have the things we want. Experiences are more important to many of us. There is a lot of enjoyment in planning and anticipation. Having always been invested, I am making a conscious effort to not...
by SGM
Sat May 13, 2017 8:14 am
Forum: Investing - Theory, News & General
Topic: Praise for Roth IRA conversions in retirement, a bonus for early retirees
Replies: 11
Views: 1919

Re: Praise for Roth IRA conversions in retirement, a bonus for early retirees

We converted all traditional accounts to Roth accounts over a 5 year period. I am not yet 70 1/2. I looked at I-orp and it calculated the calculated value of our investments would be 10% higher over the rest of our lifetime than if we converted none of the traditional accounts. The Roth accounts now...
by SGM
Wed May 10, 2017 3:13 am
Forum: Personal Finance (Not Investing)
Topic: Long Term [Care] Rates just went Through the roof!
Replies: 34
Views: 4648

Re: Long Term [Care] Rates just went Through the roof!

A relative chose to go the self insured route. He is now in an assisted living facility. If current expenses remain the same he has enough funds to last 26 years if he left his investments in cash. If he lived that long he would be the oldest person on the planet. Obviously his expenses will go up w...
by SGM
Tue May 09, 2017 4:49 pm
Forum: Investing - Theory, News & General
Topic: Dividend stocks vs S&P 500
Replies: 24
Views: 2473

Re: Dividend stocks vs S&P 500

I have been aware of dividend "aristocrats" since 1980 as I mostly invested in low cost drips. I no longer have drips, but I still have JNJ and others that are listed as dividend aristocrats in my portfolio. The LT capital gains are large and I have chosen to winnow each stock down to less...
by SGM
Tue May 09, 2017 4:23 am
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 37531

Re: Kotlikoff: When Should you Take Social Security?

I too have advised friends about the now closed "loophole" concerning file and suspend and spousal benefits prior to the law change. One couple happily invested all of spousal benefit and the oldest of the two is now taking her own benefit at 70. This advice has resulted in several free re...
by SGM
Sun May 07, 2017 3:15 pm
Forum: Investing - Theory, News & General
Topic: Sensible article on Smart Beta by Jonathan Clements
Replies: 21
Views: 1738

Re: Sensible article on Smart Beta by Jonathan Clements

Yes, humorous. Sounds a lot like the stock picker crowd with a whole lot of "ideas" on how to "beat" just holding and forgetting the S&P 500. All I hear is noise. Also, I find the term "smart beta" as something of an oxymoron. "Risk comes from not knowing what...
by SGM
Sun May 07, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Dividends & Taxes in (taxable account) Index Fund
Replies: 12
Views: 1487

Re: Dividends & Taxes in (taxable account) Index Fund

I knew David would be on this one right away. :D
by SGM
Sun May 07, 2017 8:59 am
Forum: Investing - Theory, News & General
Topic: Morgan Stanley drops Vanguard funds
Replies: 26
Views: 7347

Re: Morgan Stanley drops Vanguard funds

I talked to a friend a few years ago who had all his investments in Morgan Stanley. He had no idea what his costs were. He is now all in Vanguard funds. You get a lot of friendly advice from these kinds of companies while someone has a hand in your pocket and you may not know it. Caveat emptor. Unfo...
by SGM
Sun May 07, 2017 4:46 am
Forum: Investing - Help with Personal Investments
Topic: Dividends & Taxes in (taxable account) Index Fund
Replies: 12
Views: 1487

Re: Dividends & Taxes in (taxable account) Index Fund

Ordinary dividends are taxed at your 28% rate. Qualified dividends are taxed at 15-18.8% if you are in the 28% bracket. The 3.8% is based on total investment income. I am not a tax expert, but I believe muni bond fund interest is added in to determine this 3.8% tax. This may change in the future. Pr...
by SGM
Fri May 05, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Tips From Older Bogleheads?
Replies: 52
Views: 4271

Re: Tips From Older Bogleheads?

I have generally lived by "a penny earned is a penny saved" and "never a borrower or a lender be." Although I borrowed to buy a house and to buy one of my first cars (but it was two years old). I agree with much of what others have said and won't write an exhaustive list. Pay you...
by SGM
Fri May 05, 2017 8:15 am
Forum: Investing - Theory, News & General
Topic: What is your overall portfolio weighted expense ratio
Replies: 202
Views: 15012

Re: What is your overall portfolio weighted expense ratio

At the time this thread started I suspect my overall portfolio ER was about .01. The only time I accurately knew my overall ER was when I had Vanguard do a free plan. At that time the ER was .026. It is higher now because I have less individual stock and more index and bond funds.
by SGM
Thu May 04, 2017 10:47 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Allocation
Replies: 15
Views: 1217

Re: Retirement Allocation

This is a reasonable allocation in retirement. Have you read Jane Bryant Quinn's book How to Make Your Money Last? It is current and very readable. Good luck to you.
by SGM
Thu May 04, 2017 8:54 am
Forum: Personal Finance (Not Investing)
Topic: CREF payment increase
Replies: 1
Views: 176

CREF payment increase

DW's annuitized TIAA-CREF account had a small drop in the CREF payout last year. However as of 5/01/2017 the CREF payout went up 13.7%. TIAA is a fixed annuity and CREF is a variable annuity as most people know. This is a plan from 4 years of work at a university back in the 1980s. The payout for th...
by SGM
Thu May 04, 2017 3:59 am
Forum: Investing - Theory, News & General
Topic: A Boglehead Guide to Buying Individual Stocks
Replies: 85
Views: 6600

Re: A Boglehead Guide to Buying Individual Stocks

According to the wisdom of Jimmy Jones back in 1960 you have to have good timin' "Who in the world would've ever known What Columbus could do If Queen Isabella hadn't hocked her jewels In fourteen ninety two But she had timin' A tick, a tick, a tick, good timin' A tock, a tock, a tock, a tock A...
by SGM
Wed May 03, 2017 9:32 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe Article On Enhancing Momentum Strategies
Replies: 60
Views: 5490

Re: Larry Swedroe Article On Enhancing Momentum Strategies

I recently read a transcript of James Lange radio show's interview of Larry Swedroe. Lange's office uses the same funds Swedroe's company uses. There were a lot of statements that I think most BHs would argue with in the interview. There are some political comments Larry made during the interview th...
by SGM
Wed May 03, 2017 7:54 am
Forum: Personal Consumer Issues
Topic: water softener for whole house?
Replies: 28
Views: 2226

Re: water softener for whole house?

I just had a neutralizer and water softener installed for our well and the water is now slimy and tastes bad. The plumbers advised if we neutralized the water we would need the water softener. I suspect the plumbers did not know how to set it up the neutralizer correctly. I will consult with Cullig...
by SGM
Wed May 03, 2017 3:11 am
Forum: Investing - Help with Personal Investments
Topic: 403(b) to IRA or Roth IRA?
Replies: 3
Views: 326

Re: 403(b) to IRA or Roth IRA?

You will need to fill out an 8606 form. If you haven't done this for prior tIRAs you will need to do them for prior years to determine a basis for all your tIRAs. If you do prior 8606 forms do not send them in with your 1040, but send the earlier year 8606 forms prior to doing your 1040 as I was ins...
by SGM
Wed May 03, 2017 2:25 am
Forum: Personal Consumer Issues
Topic: water softener for whole house?
Replies: 28
Views: 2226

Re: water softener for whole house?

I just had a neutralizer and water softener installed for our well and the water is now slimy and tastes bad. The plumbers advised if we neutralized the water we would need the water softener. I suspect the plumbers did not know how to set it up the neutralizer correctly. I will consult with Culliga...
by SGM
Tue May 02, 2017 4:09 am
Forum: Investing - Theory, News & General
Topic: Are we all forgetting our taxable accounts?
Replies: 79
Views: 9607

Re: Are we all forgetting our taxable accounts?

Early limits for tax deferred accounts were quite low when I started investing. I have always maximized tax preferred accounts. My taxable accounts have always been important. This is where I tax loss harvest or take capital gains for a large expense and get hit with yearly dividend taxes. I also us...
by SGM
Mon May 01, 2017 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Convince me that I'm holding too much cash
Replies: 62
Views: 7686

Re: Convince me that I'm holding too much cash

If I were in your situation I would use a CD ladder. I recently opened up a 3% 1 year CD for my elderly parent an army vet at the Navy Fed Credit Union. His assisted living expenses mean he will pay no taxes on the interest. I think it is okay to have 3 years in cash if you don't have sufficient inc...
by SGM
Mon May 01, 2017 4:41 am
Forum: Investing - Help with Personal Investments
Topic: Financial NonAdvice
Replies: 12
Views: 1440

Re: Financial NonAdvice

Your portfolio is simple, low cost and diversified. Stick with it. You could read some of the books on the wiki or ask specific questions on this site. I heard on the radio last night an advisor using scare tactics to get customers to buy into a scheme that would make the advisor a fortune. He start...
by SGM
Sun Apr 30, 2017 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Sleep well or not ? [Vanguard Intermediate-Term Tax-Exempt]
Replies: 45
Views: 6347

Re: Sleep well or not ? [Vanguard Intermediate-Term Tax-Exempt]

I own some of the intermediate tax exempt fund and others in retirement. I don't sweat any change in NAV. I might tax loss harvest and it put it in another tax exempt bond fund. Dividends are not reinvested but cycle through my checking account either to be spent or if not then reinvested where I pl...
by SGM
Sun Apr 30, 2017 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: When to consider Long Term Care Insurance
Replies: 38
Views: 2755

Re: When to concider Long Term Care Insurance

<snip> I don't ever want to be in a LTC facility having worked in them for many years as a house physician. <snip> Can you please speak more on this? I would be curious about your "insiders" POV. It is too great a loss of freedom for me. In my experience men do not do so well adjusting to...
by SGM
Sun Apr 30, 2017 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Dealing with regret
Replies: 102
Views: 8608

Re: Dealing with regret

Nobody goes through life without making some mistakes. It sounds like you have picked yourself up by your own bootstraps. You are still way ahead of most 40 year olds. Keep saving. Pick an asset allocation you are comfortable with and don't panic sell in a market meltdown. When there is a half price...
by SGM
Sun Apr 30, 2017 3:28 am
Forum: Personal Finance (Not Investing)
Topic: Please poke holes in my tax strategy
Replies: 22
Views: 3326

Re: Please poke holes in my tax strategy

I use mostly muni bond funds for any fixed income in taxable. I tax loss harvested some of the muni bond funds and muni ETFs in 2016. I don't reinvest the stock or muni dividends in any of my taxable accounts. We take capital gains yearly to reallocate and to pay large bills. I will probably not sel...
by SGM
Sat Apr 29, 2017 10:31 am
Forum: Personal Finance (Not Investing)
Topic: When to consider Long Term Care Insurance
Replies: 38
Views: 2755

Re: When to concider Long Term Care Insurance

A lawyer friend bought LTCI in his 50s and eventually gave up on it and is self insured. The payments kept going up. LTCI is difficult for insurance companies to price in part because of rising rates and something called moral hazard. I listened to a discussion about this at the Social Security Rese...
by SGM
Sat Apr 29, 2017 3:38 am
Forum: Investing - Theory, News & General
Topic: "Jack Bogle: It's Easier to Serve One Master Than Two."
Replies: 5
Views: 1874

Re: "Jack Bogle: It's Easier to Serve One Master Than Two."

Vanguard has forced some of the big players to lower their expense ratios on total stock market and 500 index funds. That is good for all investors. You can also get Vanguard ETFs at any brokerage. There will still be plenty of people who need additional hand holding and want active funds. I run int...
by SGM
Fri Apr 28, 2017 4:35 pm
Forum: Investing - Theory, News & General
Topic: The Importance of “Cash on Hand” to Life Satisfaction
Replies: 29
Views: 3485

Re: The Importance of “Cash on Hand” to Life Satisfaction

"Different financial accounts may therefore have distinct hedonic impact." Not exactly a shocking conclusion.
by SGM
Fri Apr 28, 2017 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Should we wait untill tax's are changed
Replies: 9
Views: 1359

Re: Should we wait untill tax's are changed

I suppose there might be some situations where it makes sense to pay taxes for a conversion out of a tIRA but I generally read that it was not recommended to make the tax payments out of your traditional account. I made all my conversions with tax payments out of taxable. The immediate effect at the...
by SGM
Fri Apr 28, 2017 7:25 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 3901

Re: Should we treat investors' tolerance for volatility as fixed?

My tolerance for volatility is inversely related to available human capital. I still have a significant tolerance for risk and volatility because of various income streams in retirement, but I am no longer 100% in equities since I am recently retired. I didn't give a damn if valuations were low when...
by SGM
Thu Apr 27, 2017 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: How to Capitalize Your Pension and SSA for AA Purposes?
Replies: 8
Views: 825

Re: How to Capitalize Your Pension and SSA for AA Purposes?

I am looking for how much income my portfolio and all assets can produce. So I am really looking at things the other way. I am not capitalizing any income streams. Rather I am looking at how much income I can produce with any asset I own. My goal is to increase the number of income streams.
by SGM
Thu Apr 27, 2017 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: May not be eligible for Roth, where to save?
Replies: 4
Views: 513

Re: May not be eligible for Roth, where to save?

For many years I was ineligible for a Roth and contributed to non-deductible traditional IRAs. Prior to that there was no such thing as a Roth. After 2010 I was allowed to convert to Roth IRAs. I did a lot of these conversions when I was working part time or after retiring completely and before taki...
by SGM
Thu Apr 27, 2017 3:09 am
Forum: Investing - Help with Personal Investments
Topic: $1m capital gains, worth it to simplify and index?
Replies: 46
Views: 3976

Re: $1m capital gains, worth it to simplify and index?

We accumulated mostly individual stocks over many years in taxable accounts. Our largest holdings are in index funds now, but we will probably never sell all the individual stocks due to large capital gains. Our goal is to make no individual stock too large a position in our portfolio. If we had act...
by SGM
Wed Apr 26, 2017 4:32 am
Forum: Personal Finance (Not Investing)
Topic: House sale to cover long term care expense
Replies: 5
Views: 807

Re: House sale to cover long term care expense

Is there a question? That is how it SHOULD work, sale the house pay for long term care, when/if the money runs out Medicaid kicks in. Its a viable plan for many people. Is a question required in order to post? :shock: Thanks for your comment. Actually it worked perfectly. This is a real success sto...
by SGM
Tue Apr 25, 2017 7:58 am
Forum: Personal Finance (Not Investing)
Topic: House sale to cover long term care expense
Replies: 5
Views: 807

House sale to cover long term care expense

A real estate agent told us the suburban NYC market is hot so we quickly cleaned up the old family home, fixed a leak, exposed some pretty hardwood floors and put in a new carpet in a non-hardwood area. A window had been installed incorrectly 50 years ago and was fixed. Over 63 years the home had de...
by SGM
Mon Apr 24, 2017 7:56 pm
Forum: Personal Consumer Issues
Topic: My Doctor says I am "unusual" (declining some blood tests)
Replies: 51
Views: 6926

Re: My Doctor says I am "unusual" (declining some blood tests)

I am a retired primary care physician. When I requested a lab copy another doctor with the results they would not do so unless I submitted a unique laboratory specific identification four or five digit number for the other doctor. The doctor's name alone was insufficient. I kept a piece of paper wi...
by SGM
Mon Apr 24, 2017 7:42 am
Forum: Personal Consumer Issues
Topic: My Doctor says I am "unusual" (declining some blood tests)
Replies: 51
Views: 6926

Re: My Doctor says I am "unusual" (declining some blood tests)

I am a retired primary care physician. When I requested a lab copy another doctor with the results they would not do so unless I submitted a unique laboratory specific identification four or five digit number for the other doctor. The doctor's name alone was insufficient. I kept a piece of paper wit...
by SGM
Mon Apr 24, 2017 1:56 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 2673
Views: 729875

Re: What Movie Have You Recently Watched?

abuss368 wrote:Blue Caprice on Netflix. A story of the D.C. Sniper years ago.
I lived through the D.C. Sniper so I don't want to see a movie about it.

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