Search found 1133 matches

by Snowjob
Thu Apr 21, 2016 4:51 pm
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 88
Views: 7334

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

.... In your early 70s purchase a real longevity annuity, aka an inflation-indexed delayed life annuity, that kicks in payments at age 85. The real longevity annuity should be equal to the annual income you were getting from the TIPS ladder that ceased at age 85. In other words, the real income fro...
by Snowjob
Thu Apr 14, 2016 9:35 am
Forum: Investing - Theory, News & General
Topic: How do you measure which retirement income strategy is best? By Michael Kitces
Replies: 21
Views: 1944

Re: How do you measure which retirement income strategy is best? By Michael Kitces

I plan on transitioning my portfolio through all three of his options over time, effectively getting the best of each strategy. First 10-20 years -> balanced portfolio Remaining Years -> SPIA + All stock I would not use a longevity product, I would simply used my balanced portfolio during that time ...
by Snowjob
Mon Apr 11, 2016 8:19 pm
Forum: Investing - Theory, News & General
Topic: Annuities and longevity risk, analyzing the problem
Replies: 45
Views: 3689

Re: Annuities and longevity risk, analyzing the problem

Since I think that it's prudent to buy an inflation-linked annuity (and have already put my money where my mouth is by buying one), I also think that a problem with deferred annuities is that they are not inflation-linked during the deferral period. Agreed. The example has the hypothetical investor...
by Snowjob
Mon Apr 11, 2016 10:24 am
Forum: Investing - Theory, News & General
Topic: Annuities and longevity risk, analyzing the problem
Replies: 45
Views: 3689

Re: Annuities and longevity risk, analyzing the problem

Sorry I must not have articulated this well. Scenario 1 - Age 65 Buy deferred Annuity to kick in at 85, spend the balance of my portfolio to 0. Scenario 2 - Spend 80% of my money from age 65 to 85, then annuitize the rest via SPIA at 85. ----- I the insurance company is giving you some sort of retu...
by Snowjob
Mon Apr 11, 2016 9:52 am
Forum: Investing - Theory, News & General
Topic: Annuities and longevity risk, analyzing the problem
Replies: 45
Views: 3689

Re: Annuities and longevity risk, analyzing the problem

Sorry I must not have articulated this well. Scenario 1 - Age 65 Buy deferred Annuity to kick in at 85, spend the balance of my portfolio to 0. Scenario 2 - Spend 80% of my money from age 65 to 85, then annuitize the rest via SPIA at 85. ----- I the insurance company is giving you some sort of retur...
by Snowjob
Mon Apr 11, 2016 8:59 am
Forum: Investing - Theory, News & General
Topic: Annuities and longevity risk, analyzing the problem
Replies: 45
Views: 3689

Re: Annuities and longevity risk, analyzing the problem

At the bottom of the article you compared the use of an SPIA vs a Deferred Annuity and the Deferred Annuity allowed for a substantial increase in the spending power. It wasn't even close 33% increase vs 6% for the SPIA. My assumption is both contracts were purchased at 65. But what if I just buy an ...
by Snowjob
Thu Apr 07, 2016 12:07 pm
Forum: Personal Consumer Issues
Topic: I'm Addicted [to investing and personal finance]
Replies: 64
Views: 8330

Re: I'm Addicted

Yes -- I've been there. You are being penny wise and pound foolish. All of the grand strategizing and out performance doesn't really mean much unless your portfolio already has a lot of zeroes behind it. After learning the basics (which you seem well past) you would be better off working on a great ...
by Snowjob
Wed Mar 23, 2016 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Financially, how have you done/doing vs. your parents?
Replies: 134
Views: 10257

Re: Financially, how have you done/doing vs. your parents?

Financially, better. But that due to better investing results and increased risk.

Career wise, parents were much more successful, so in the end it will probably even out.
by Snowjob
Tue Mar 22, 2016 9:18 am
Forum: Personal Finance (Not Investing)
Topic: $1 Million+ Nest Egg From Less Than $100k Yearly Income
Replies: 45
Views: 8229

Re: $1 Million+ Nest Egg From Less Than $100k Yearly Income

... the less you earn, the greater the percentage of income that Social Security will replace so someone making $20K/year likely wouldn't need to save $1M. Oh I completely agree, I am a huge proponent of consumption smoothing, wouldn't make any sense for minimum wage workers to try and amass that m...
by Snowjob
Mon Mar 21, 2016 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: $1 Million+ Nest Egg From Less Than $100k Yearly Income
Replies: 45
Views: 8229

Re: $1 Million+ Nest Egg From Less Than $100k Yearly Income

....So I think this is doable for a lot of folks, sure not for a couple making minimum wage but you can tweak the assumptions a lot... I reckon you're going to need a lot more than minimum wage to make the $23k/year contributions. Even at $15/hour, that's just annual gross income of $31k/year. That...
by Snowjob
Mon Mar 21, 2016 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Please Critique my Plan for Retirement Savings
Replies: 10
Views: 1567

Re: Please Critique my Plan for Retirement Savings

Ok I'll bite. Do you get social security? If so, I think your plan is conservative and I think you might be saving to much. You should probably save a little less and spend a little more. At the current rate your probably on target for something in the range of 80k a year in retirement income but ar...
by Snowjob
Mon Mar 21, 2016 9:48 am
Forum: Personal Finance (Not Investing)
Topic: $1 Million+ Nest Egg From Less Than $100k Yearly Income
Replies: 45
Views: 8229

Re: $1 Million+ Nest Egg From Less Than $100k Yearly Income

Traditional 401 k + IRA @ 23k per year = 29 years of compounding at 3% real returns (my assumptions for a heavy equity portfolio). So I think this is doable for a lot of folks, sure not for a couple making minimum wage but you can tweak the assumptions a lot (lower the contributions, extend the time...
by Snowjob
Thu Mar 17, 2016 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Living off dividend income
Replies: 44
Views: 6621

Re: Living off dividend income

Considering the prices where they are today, its probably quite inefficient unless you are trying to leave a huge pile of money behind.
by Snowjob
Tue Mar 08, 2016 9:03 am
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 8100

Re: Asset location strategies for taxes are OK; but not great

Theoretical question for you both. If we assume a person has a 10k roth (all stocks) and a 10k 401k (all Bond) it has been said that the true allocation is 10,000 Stock 7,500 Bond and 2,500 Tax accrual. But how does a tax accrual behave, I would argue the portfolio behaves as a 50/50? Doesn't the b...
by Snowjob
Mon Mar 07, 2016 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: $100k Milestone Reached! - 29y/o Portfolio Checkup
Replies: 22
Views: 2992

Re: $100k Milestone Reached! - 29y/o Portfolio Checkup

Congrats...the first 100k is the hardest. If your next goal and it sure sounds like it, is to save up a downpayment fund, then go for it. Saving for retirement is great but not when it limits your ability to fulfill other equally important goals. Agree entirely. Great job on reaching the 100k mark....
by Snowjob
Mon Mar 07, 2016 7:40 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 8100

Re: Asset location strategies for taxes are OK; but not great

Not sure how this changes the calculus of putting the higher return asset in Roth, if we assume it will in fact continue to out earn bonds. If your tax rate does not change between the time you make your IRA contribution and the time of your withdrawal a tIRA and a ROTH are completely equivalent on...
by Snowjob
Mon Mar 07, 2016 2:12 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 8100

Re: Asset location strategies for taxes are OK; but not great

I prefer not thinking terms of tax adjusted value on the way in. I believe I would get lost in the weeds and make a poor decision at some point. Compare that to a traditional IRA which Vg says has a balance of $400K. Since I am in the 25% tax bracket I own $100k in taxes that have accrued in the IR...
by Snowjob
Mon Mar 07, 2016 1:08 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 8100

Re: Asset location strategies for taxes are OK; but not great

Roth - Equities (get the most mileage out of the best space) If you think you'll get the most mileage out of equities, why own any bonds at all? Once you adjust for the after-tax value, it does not matter which assets you put in a traditional IRA or 401(k) and which you put in a Roth. If you are in...
by Snowjob
Mon Mar 07, 2016 12:43 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 8100

Re: Asset location strategies for taxes are OK; but not great

Certainly, one of my favorites for this space is actually VT for ultimate efficiency.. VT has no capital gains because it doesn't rebalance. If that's what you want, you can do it with VTI and VXUS by holding them in market proportions and always buying them like that, never selling a single share....
by Snowjob
Mon Mar 07, 2016 12:28 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 8100

Re: Asset location strategies for taxes are OK; but not great

I've settled on the following -- Roth - Equities (get the most mileage out of the best space) 401k - Balanced (natural place for bonds, add equities as needed to complete the allocation) Taxable - Equity. Simple and efficient while maximizing the scarcity value of the Roth IRA. Correct me if I'm wr...
by Snowjob
Mon Mar 07, 2016 12:03 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 8100

Re: Asset location strategies for taxes are OK; but not great

I've settled on the following -- Roth - Equities (get the most mileage out of the best space) 401k - Balanced (natural place for bonds, add equities as needed to complete the allocation) Taxable - Equity. Simple and efficient while maximizing the scarcity value of the Roth IRA. Snowjob: I hope you ...
by Snowjob
Mon Mar 07, 2016 11:57 am
Forum: Investing - Theory, News & General
Topic: Living on dividend and interest a question
Replies: 30
Views: 2183

Re: Living on dividend and interest a question

To the extent that you can invest the dividends or use them better than a company can, its preferable for you to have that capital. With regards to living off the dividends, I would love to be able to. At the current S&P yield that means I would be very well off. (2.5% roughly is about 40x your ...
by Snowjob
Sun Mar 06, 2016 6:48 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 8100

Re: Asset location strategies for taxes are OK; but not great

I've settled on the following --

Roth - Equities (get the most mileage out of the best space)
401k - Balanced (natural place for bonds, add equities as needed to complete the allocation)
Taxable - Equity.

Simple and efficient while maximizing the scarcity value of the Roth IRA.
by Snowjob
Sun Mar 06, 2016 10:35 am
Forum: Investing - Theory, News & General
Topic: Sigh. IlliniDave = Market Timer (VGENX) [Vanguard Energy Fund]
Replies: 43
Views: 5511

Re: Sigh. IlliniDave = Market Timer (VGENX) [Vanguard Energy Fund]

Look at it this way,your downside is very low and your upside is very high.The world cannot function without energy.I would not be losing any sleep over it,unless you think the big oils are going under and we are all going to be riding bikes. If all the oils go under and the company is transferred ...
by Snowjob
Thu Mar 03, 2016 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Has your number changed?
Replies: 52
Views: 5954

Re: Has your number changed?

My number has increased for two reasons --

1.) I got older and realized I had under estimated a lot of costs

2.) My estimation of long term returns on equity and risks to taxation / property rights / social security cuts changes etc has increased.
by Snowjob
Thu Mar 03, 2016 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Audit my personal investments - 28 years old, MFJ, ~$165k income
Replies: 16
Views: 1708

Re: Audit my personal investments - 28 years old, MFJ, ~$165k income

Two comments and a question -- 1.) As noted before, your going to be very heavy on the stock side, possibly to heavy for you taste ultimate. I suggest a slightly more conservative risk profile. (the 75/25 Graham bounds always seemed to resonate with me personally.) To achieve this, just do a blend o...
by Snowjob
Mon Feb 29, 2016 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: How to Develop a From-the-Ground-Up retirement budget
Replies: 6
Views: 748

Re: How to Develop a From-the-Ground-Up retirement budget

I am 20-30 years away depending on a variety of factors, but I think the big challenge to me is how much to allocate toward health care spending. That is the huge x-factor.
by Snowjob
Mon Feb 29, 2016 8:27 pm
Forum: Investing - Theory, News & General
Topic: What is your target portfolio size?
Replies: 66
Views: 7017

Re: What is your target portfolio size?

25x TOTAL spending level is what I am targeting. Assuming I get 75% or so of social security, this actually increase the targeted retirement assets to 33.3x my targeted expenditures. If things go wrong or if social security ends up being less than I will be covered. That's my cushion. I will have no...
by Snowjob
Mon Feb 29, 2016 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Does everyone really need to save $1 million for retirement?
Replies: 225
Views: 28742

Re: Does everyone really need to save $1 million for retirement?

and the access to financial advice will cause a significant shift. Snowjob, would you mind expanding on this? curious as to what his meant by this, thanks Mostly that anyone can go online and get very good financial advice for free (like this website). Given how much young people use the internet t...
by Snowjob
Mon Feb 29, 2016 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Does everyone really need to save $1 million for retirement?
Replies: 225
Views: 28742

Re: Does everyone really need to save $1 million for retirement?

Another point for us younger folks to remember is, a lot of these older workers have pensions which reduces the need to save. I suspect 30 years from now this survey will see those with the ability to save to have far more retirement assets than this cohort. The lack of a pension, the doubts of soci...
by Snowjob
Sat Feb 27, 2016 2:28 am
Forum: Personal Consumer Issues
Topic: Cheap MRI in Connecticut?
Replies: 18
Views: 1522

Re: Cheap MRI in Connecticut?

I am a retired MRI radiologist. First, why do you want an MRI? There is no such thing as a cheap MRI. As noted above, the radiologist's reading fee is probably a small fraction of the total fee. Do you not have insurance that will cover the study? If you saw a reputable orthopedist (preferably a kn...
by Snowjob
Sat Feb 27, 2016 12:55 am
Forum: Investing - Theory, News & General
Topic: The Vanishing DIY Annuity
Replies: 11
Views: 2269

Re: The Vanishing DIY Annuity

my trusty excel spreadsheet also predicts 80 yrs. YE portfolio Year w/d 1,000,000 0 52,000 971,700 1 53,040 941,627 2 54,101 909,714 3 55,183 875,894 4 56,286 840,098 5 57,412 802,253 6 58,560 762,285 7 59,732 720,117 8 60,926 675,670 9 62,145 628,864 10 63,388 579,613 11 64,655 527,831 12 65,949 47...
by Snowjob
Thu Feb 25, 2016 10:34 am
Forum: Personal Consumer Issues
Topic: Cheap MRI in Connecticut?
Replies: 18
Views: 1522

Re: Cheap MRI in Connecticut?

Average Cost In Connecticut :happy http://www.newchoicehealth.com/places/connecticut/hartford/mri Tried a few days ago, they don't have any partners willing to quote in CT -- seems more likely participants don't like the idea of price competition. Stay away from hospital-based imaging centers. They...
by Snowjob
Thu Feb 25, 2016 8:29 am
Forum: Personal Consumer Issues
Topic: Cheap MRI in Connecticut?
Replies: 18
Views: 1522

Re: Cheap MRI in Connecticut?

Thanks for the update guys, I've seen a few "Open MRI" places I'll call there. Also called the local walk in place through our hospital and have been wading in the weeds with pre-services people trying to get a price quote.. I hate buy a good or service with out know the price until after ...
by Snowjob
Wed Feb 24, 2016 4:51 pm
Forum: Personal Consumer Issues
Topic: Cheap MRI in Connecticut?
Replies: 18
Views: 1522

Cheap MRI in Connecticut?

Anyone know of a cheap or at least fair priced place to get an MRI (for knee) done in Connecticut?
by Snowjob
Mon Feb 22, 2016 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Mr Money Mustache Article (New Yorker)
Replies: 94
Views: 12032

Re: Mr Money Mustache Article (New Yorker)

And when everyone adopts his philosophy that 600k of investments will be worthless and his blog will no longer bring in any money. His life is possible precisely because others aren't doing it.
by Snowjob
Mon Feb 22, 2016 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Mr Money Mustache Article (New Yorker)
Replies: 94
Views: 12032

Re: Mr Money Mustache Article (New Yorker)

My only problem with him is that he claims to be living and loving a $24k (or whatever) lifestyle, but he's not. For instance, he traded work for a 1 month vacation in Hawaii a few years back. People living a $24k lifestyle don't get to vacation in Hawaii for a month. He traded $10,000 worth of wor...
by Snowjob
Fri Feb 19, 2016 6:03 am
Forum: Investing - Theory, News & General
Topic: Extreme saving with low returns - not worth it?
Replies: 71
Views: 8581

Re: Extreme saving with low returns - not worth it?

But my wife and I may be able to retire mr money mustache style quite young (early 40s). We would do the rat race for ~10 more years, live super cheaply, work some long tough weeks, have more stress, less family time, pay a lot more in taxes, and have to live super cheaply retiring early. Or we may...
by Snowjob
Wed Feb 17, 2016 8:24 am
Forum: Investing - Theory, News & General
Topic: World stocks officially reach bear market territory
Replies: 27
Views: 3952

Re: World stocks officially reach bear market territory

FWIW, I added some of the VT (world stock ETF) today, will add more if we have another big down draft from here. Where are you getting the cash? Is it just sitting around? Are you simply re-balancing from bonds or changing your AA?[/quote] Nope, borrowed a little on margin. Will offset the cost by ...
by Snowjob
Thu Feb 11, 2016 9:49 pm
Forum: Investing - Theory, News & General
Topic: The RBD (Really Bad Days) database
Replies: 25
Views: 2733

Re: The RBD (Really Bad Days) database

I'm not sure timing 1% of your portfolio is worth the effort of tracking...
by Snowjob
Thu Feb 11, 2016 8:35 pm
Forum: Investing - Theory, News & General
Topic: World stocks officially reach bear market territory
Replies: 27
Views: 3952

Re: World stocks officially reach bear market territory

Chill out people. I think it's a very relevant observation that the global stock market is in a bear market and the way things are going the US market will join that club soon enough. Most US stocks are basically there already. FWIW, I added some of the VT (world stock ETF) today, will add more if ...
by Snowjob
Thu Feb 11, 2016 12:17 pm
Forum: Personal Consumer Issues
Topic: The Retirement Problem: What Will You Do With All That Time?
Replies: 67
Views: 6508

Re: The Retirement Problem: What Will You Do With All That Time?

I think the more important question that Wharton should study is why do people tie their sense of identity and self-worth to their jobs in the first place? In today's world where technological change and economic forces can rip their job from them and quickly render their occupations obsolete, woul...
by Snowjob
Thu Feb 11, 2016 11:52 am
Forum: Investing - Theory, News & General
Topic: Today's Market Open supposed be Brutal...........
Replies: 44
Views: 4109

Re: Today's Market Open supposed be Brutal...........

Low rates / easy money combined with surge in demand for commodities increases capacity. Demand falls, capacity must be shuttered. Bankruptcies may happen. Once this all corrects and we reach some sort of equilibrium we should be fine. Lower returns for those industries affected could last for quite...
by Snowjob
Mon Feb 08, 2016 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: No guts to buy today!
Replies: 55
Views: 5660

Re: No guts to buy today!

I'm continuing to add to my equity exposure as the year wears on. Its been grinding for industrials which have been my main focus so far. It hurts to see your purchases continue to fall in price. I think my experience with the 2008 / 2009 decline has taught me plenty of valuable lessons about exposu...
by Snowjob
Mon Feb 08, 2016 11:29 am
Forum: Investing - Theory, News & General
Topic: Jim Cramer
Replies: 21
Views: 2312

Re: Jim Cramer

What I would say is this. Does he know what he is talking about? Yes, certainly more than anyone here when it comes to the markets operations and whats going on with individual companies (unless we have industry insiders lurking on the board) Does he outperform the market? Who knows, I would guess m...
by Snowjob
Fri Feb 05, 2016 8:25 am
Forum: Investing - Theory, News & General
Topic: Re Yale Endowment, via Bloomberg
Replies: 10
Views: 1304

Re: Re Yale Endowment, via Bloomberg

50 million in 1990 in total market would be worth about 329 million today. The hedge fund more than paid for itself it is worth 1 billion dollars.... 10% beats the Total market from 1994 to today by about 1%. And losing only 18% financial crisis had to help you sleep at night. It is very hard to ar...
by Snowjob
Wed Feb 03, 2016 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: My portfolio
Replies: 9
Views: 616

Re: My portfolio

Any desire to leave money to kids / charities? I have only one child. I gave her free education, bought her an apartment when she married and we enjoy spoiling the grand children. Although at a minimum she will inherit some real estate, to me what we have already done is enough. With that in mind, ...
by Snowjob
Wed Feb 03, 2016 10:24 am
Forum: Personal Finance (Not Investing)
Topic: What growth rate would you use?
Replies: 75
Views: 4024

Re: What growth rate would you use?

I'm using 4% real returns for Equity (when I want to feel better, 3% if I want to be safe) and 0% for cash & bonds.
by Snowjob
Wed Feb 03, 2016 10:12 am
Forum: Investing - Help with Personal Investments
Topic: My portfolio
Replies: 9
Views: 616

Re: My portfolio

Any desire to leave money to kids / charities?
by Snowjob
Tue Feb 02, 2016 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Nearing retirement but annual contribution still very significant
Replies: 41
Views: 3763

Re: Nearing retirement but annual contribution still very significant

You are applying a generality to your situation. A typical boglehead probably is around 30x or more (a little safer than the 25x expenses we talk about with the 4% swr) so they are probably talking a 2-3% increase to liquid net worth not a 5-8%. In that light the generality makes more sense. If it w...

Go to advanced search