Search found 9716 matches

by The Wizard
Wed Apr 26, 2017 9:26 am
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 43
Views: 2384

Re: Thinking in real vs. nominal

It is helpful to plan, forecast and track your AA in real terms... There are certain things that we CAN do with high accuracy, such as saving 20% of current income for retirement and avoiding keeping a significant percentage of assets in situations with expected return less than CURRENT inflation, ...
by The Wizard
Wed Apr 26, 2017 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Using Roth IRA as a savings account?
Replies: 17
Views: 1146

Re: Using Roth IRA as a savings account?

Thanks for the replies all. To better explain my thought process: I am thinking more in terms of longer term savings, not everyday stuff like car repairs, house maintenance, etc. I'm thinking along the lines of a new car purchase or other longer term, large purchases and if the money isn't needed i...
by The Wizard
Wed Apr 26, 2017 8:08 am
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 43
Views: 2384

Re: Thinking in real vs. nominal

It is helpful to plan, forecast and track your AA in real terms... I have no idea what this means. My target Asset Allocation, in retirement for four years now, is 50% stocks and 50% non-stock, which includes real estate along with bonds and guaranteed funds (TIAA Traditional). The difference betwe...
by The Wizard
Tue Apr 25, 2017 1:24 pm
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 43
Views: 2384

Re: Thinking in real vs. nominal

...Does anyone actually think you don't need an inflation adjustment at all? Meaning you can predict nominal returns and expect that to buy what it can buy now? That would be pretty crazy. My first new car, purchased in 1975, cost less than $4000. My latest vehicle purchase, a 2016 model not the sa...
by The Wizard
Tue Apr 25, 2017 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Single Premium Immediate Annuity
Replies: 16
Views: 1227

Re: Single Premium Immediate Annuity

2. SPIAs (as far as I know) are generally not "gender neutral". Men get more monthly income for life than women for the same purchase price. Some are, TIAA in particular... Would this mean that men should avoid TIAA? Good question! Not especially. TIAA's payout was still better than those...
by The Wizard
Tue Apr 25, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank - Savings Account Rate Increased!
Replies: 70
Views: 7773

Re: Ally Bank - Savings Account Rate Increased!

If you are trying to live off of dividends, then I see what you're saying - you get more with the VTSAX. For me, I have 3 months living expenses in a checking account. I can't risk a potential 10-20% swing in the NAV just to earn a few more dollars on the dividend side. I think that's why this appl...
by The Wizard
Tue Apr 25, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Single Premium Immediate Annuity
Replies: 16
Views: 1227

Re: Single Premium Immediate Annuity

dm200 wrote:2. SPIAs (as far as I know) are generally not "gender neutral". Men get more monthly income for life than women for the same purchase price.

Some are, TIAA in particular...
by The Wizard
Tue Apr 25, 2017 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Single Premium Immediate Annuity
Replies: 16
Views: 1227

Re: Single Premium Immediate Annuity

Sometimes in the evening, after consuming a fine IPA, I sometimes think that the Government is holding my tax-deferred accounts hostage. (Ha ha...JOKE, not political...) I can have the money therein so long as I pay a 33% combined ransom. This is my marginal rate, not my effective average rate on my...
by The Wizard
Tue Apr 25, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank - Savings Account Rate Increased!
Replies: 70
Views: 7773

Re: Ally Bank - Savings Account Rate Increased!

The annualized dividend from total stock market VTSAX is generally greater than 1.05% and is taxed more favorably. Boo to savings accounts! VTSAX and savings accounts aren't like comparing apples and oranges. It's more like grapefruits and chicken wings. Yum, I love both, but not at the same meal. ...
by The Wizard
Tue Apr 25, 2017 9:31 am
Forum: Investing - Theory, News & General
Topic: Is AA steady state, or unsteady state?
Replies: 14
Views: 936

Re: Is AA steady state, or unsteady state?

...Wade Pfau and Michael Kitces argue that, as a long-term risk management tool, that one's portfolio should have an increasing allocation to bonds until beginning withdrawals, but that the allocation to stocks should then begin increasing and slowly. This is intended to help reduce the retiree's l...
by The Wizard
Tue Apr 25, 2017 9:24 am
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 43
Views: 2384

Re: Thinking in real vs. nominal

Thinking in nominal terms is one of the biggest mistakes you can make. But can you explain this in the context of my post just before yours on planning ten years in the future? If I paid $30,000 for my new car a year ago, do I simply plan on paying $60,000 ten years from now and that makes me a Rea...
by The Wizard
Tue Apr 25, 2017 9:21 am
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 43
Views: 2384

Re: Thinking in real vs. nominal

Nate79 wrote:Thinking in nominal terms is one of the biggest mistakes you can make.

If you're saying that putting my $1 million in a saving account at 1% APR is a mistake because then I eliminate all risk and am guaranteed to have a million dollars forever, then I completely agree...
by The Wizard
Tue Apr 25, 2017 9:16 am
Forum: Investing - Help with Personal Investments
Topic: One Fund? Really?
Replies: 24
Views: 2378

Re: One Fund? Really?

In a tax deferred account, a single balanced fund like this might be OK.
But not in your personal taxable account, since it makes it difficult to harvest tax losses, plus you may want tax-exempt bonds rather than nominal bonds...
by The Wizard
Tue Apr 25, 2017 8:11 am
Forum: Investing - Help with Personal Investments
Topic: understanding TIAA-CREF
Replies: 22
Views: 1297

Re: understanding TIAA-CREF

...As you can see, the rates during the annuitization phase do appear to increase for older vintages, but I do not know if that is always the case or if it is the same during accumulation (pre-annuitization) phase. The Morningstar forum is helpful, yes. The vintage system, based on when contributio...
by The Wizard
Tue Apr 25, 2017 7:55 am
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 43
Views: 2384

Re: Thinking in real vs. nominal

I think in real terms because that's what's going to matter. What matters is not the number in your account, what matters is your buying power . This is completely true. But what actionable steps does one take to embrace this? As an example, let's say I plan to buy a new Mustang convertible in ten ...
by The Wizard
Tue Apr 25, 2017 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Single Premium Immediate Annuity
Replies: 16
Views: 1227

Re: Single Premium Immediate Annuity

...I remember reading the story of a boxer who blew all his money except for an 800k annuity a number of years ago. For this boxer it was nice to have an income stream from the annuity and I would suspect that the income you could get from an 800k annuity in say the 1980s was a bit higher than you ...
by The Wizard
Tue Apr 25, 2017 6:31 am
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 43
Views: 2384

Re: Thinking in real vs. nominal

I plan strictly in nominal dollars, ignoring both inflation and increase in asset values due to market changes.
I do, however, update my projections early each year based on actuals...
by The Wizard
Tue Apr 25, 2017 5:46 am
Forum: Personal Finance (Not Investing)
Topic: Kitces on Social Security- Divorce and the spousal benefit
Replies: 4
Views: 1062

Re: Kitces on Social Security- Divorce and the spousal benefit

I started divorced spouse SS a year ago at FRA. This will continue for another 34 months at which point I switch to my own benefit... It looks like your total benefit by age 70 would have been higher if you started spousal SS a year or two before FRA (assuming the 5% per year numbers in the OP). Co...
by The Wizard
Mon Apr 24, 2017 11:26 pm
Forum: Investing - Theory, News & General
Topic: Is AA steady state, or unsteady state?
Replies: 14
Views: 936

Re: Is AA steady state, or unsteady state?

Many of us have bands of acceptable variation around their target AA. If your target was 80% stocks, then between 77% and 83% might be acceptable. If that target % declines by 1% per year, then you may be able to keep your AA close to target by adjusting where new $$ goes. But once retired, you'll n...
by The Wizard
Mon Apr 24, 2017 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: Kitces on Social Security- Divorce and the spousal benefit
Replies: 4
Views: 1062

Re: Kitces on Social Security- Divorce and the spousal benefit

I started divorced spouse SS a year ago at FRA. This will continue for another 34 months at which point I switch to my own benefit...
by The Wizard
Mon Apr 24, 2017 8:36 pm
Forum: Personal Consumer Issues
Topic: New job and offer - recruiter sent a wrong $$
Replies: 43
Views: 4629

Re: New job and offer - recruiter sent a wrong $$

Just say no.
No need to deal with **** like this...
by The Wizard
Mon Apr 24, 2017 8:18 pm
Forum: Investing - Theory, News & General
Topic: everywhere we are encouraged to trade and to our detriment
Replies: 31
Views: 2986

Re: everywhere we are encouraged to trade and to our detriment

A lot of us spend a lot of time actively visiting and reading this forum to remind us to not spend any time thinking about investing! Works for me! :sharebeer Doesn't work for me. With an almost 4% uptick in my international stock fund today, I rebalanced a modest amount into TIAA Traditional at 3:...
by The Wizard
Mon Apr 24, 2017 8:12 pm
Forum: Investing - Theory, News & General
Topic: everywhere we are encouraged to trade and to our detriment
Replies: 31
Views: 2986

Re: everywhere we are encouraged to trade and to our detriment

Apparently some people are confusing information and entertainment with decision making.
I enjoy watching CNBC and Jim Cramer's CEO interviews.
But do I take investment advice from there?
No, not at all.
I don't take advice from Days Of Our Lives either...
by The Wizard
Mon Apr 24, 2017 7:27 pm
Forum: Personal Consumer Issues
Topic: I need to rant about ATT Wireless.
Replies: 12
Views: 1155

Re: I need to rant about ATT Wireless.

So this afternoon, I tried to cancel my phone service with ATT. I never set up a pass code for my phone. I don't remember being told I needed to have a pass code. But now I am told I need to have a pass code to cancel my contract over the phone. SPRINT has a similar code they ask for when/if I call...
by The Wizard
Mon Apr 24, 2017 7:27 pm
Forum: Personal Consumer Issues
Topic: I need to rant about ATT Wireless.
Replies: 12
Views: 1155

Re: I need to rant about ATT Wireless.

I just had my phone die on me two weeks ago, not lost. It wasn't an iPhone, it was a Nexus 5x. I was able to get a warranty replacement in two days, so I survived. But it was a learning experience. I highly recommend owning your smartphone outright from day one. Then get service month to month with ...
by The Wizard
Mon Apr 24, 2017 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: understanding TIAA-CREF
Replies: 22
Views: 1297

Re: understanding TIAA-CREF

Even if you roll over the TIAA as one lump sum into an IRA as opposed to utilizing the annuity/pension option, you will be subject to RMDs so you get your cash flow stream one way or another unless I am missing something by relinquishing a TIAA option. RMDs aren't all that much fun. What's more fun...
by The Wizard
Mon Apr 24, 2017 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Converting from Spousal SS to my SS
Replies: 1
Views: 322

Re: Converting from Spousal SS to my SS

I am currently receiving Spousal SS. Is there a was to find out what my benefit will be either now or sometime in the future. Thank you Ernest I'm similar. They seem to hide that info from you, don't they? I have some data from when I filed for spousal at FRA that shows my own benefit at age 70. So...
by The Wizard
Mon Apr 24, 2017 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: understanding TIAA-CREF
Replies: 22
Views: 1297

Re: understanding TIAA-CREF

The general gist of the annuity is that you get a guaranteed interest rate around 3 or 4% that goes up the longer you stay invested. Once you retire, you can "annuitize" and get an even higher interest rate around 5 or 6% but then they keep any leftover money after you die, or you can sti...
by The Wizard
Mon Apr 24, 2017 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: understanding TIAA-CREF
Replies: 22
Views: 1297

Re: understanding TIAA-CREF

And to answer your question #1, withdrawing your TIAA accumulation in a lump sum at retirement would generally be a terrible idea due to our progressive tax laws... Thanks for your reply. So basically, one is better rolling it over to an IRA incrementally correct? I misunderstood. A rollover to ano...
by The Wizard
Mon Apr 24, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: typical deductions for retirees
Replies: 27
Views: 2223

Re: typical deductions for retirees

I've been retired for four years and my tax return and deductions look very similar to what they were prior to retirement.
Majority of my Schedule A is state income tax and property taxes, neither of which will be decreasing in coming years...
by The Wizard
Mon Apr 24, 2017 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: understanding TIAA-CREF
Replies: 22
Views: 1297

Re: understanding TIAA-CREF

And to answer your question #1, withdrawing your TIAA accumulation in a lump sum at retirement would generally be a terrible idea due to our progressive tax laws...
by The Wizard
Mon Apr 24, 2017 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: understanding TIAA-CREF
Replies: 22
Views: 1297

Re: understanding TIAA-CREF

They simplified their corporate name to just TIAA a while back. Their strength is in qualified tax deferred retirement plans, not so much in generic taxable accounts. Someone putting $$ into TIAA funds should be thinking about pensionized/annuitizing a portion of that accumulation down the road for ...
by The Wizard
Mon Apr 24, 2017 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank - Savings Account Rate Increased!
Replies: 70
Views: 7773

Re: Ally Bank - Savings Account Rate Increased!

linuxology wrote:it's a sad day, when one gets excited about 1%. you are losing money with inflation.

Quite true.
I suppose if you're saving up for a down payment on a principal residence in a year or two it might make sense.
Similar for an emergency fund for folks just starting out...
by The Wizard
Mon Apr 24, 2017 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 112
Views: 8723

Re: Why are pensions revered, but annuities reviled?

A few other points about DB vs DC plans. Obviously a DC plan wins for folks who change employers multiple times over their career, assuming they keep their qualified funds tax deferred and don't cash out. For people who start maxing out their DC plans early, especially with a good employer match, be...
by The Wizard
Mon Apr 24, 2017 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 112
Views: 8723

Re: Why are pensions revered, but annuities reviled?

1. Annuities from the major insurance companies should be banned from the accumulation stage, except for one company: TIAA. TIAA annuity products are what all annuities should look like. Their annuities are mutual funds with low costs. They invest in the stock and bond market when the clients are a...
by The Wizard
Sun Apr 23, 2017 4:51 pm
Forum: Personal Consumer Issues
Topic: If you are financially independent, how much monywould you bother to make?
Replies: 31
Views: 3407

Re: If you are financially independent, how much monywould you bother to make?

I thought the definition of being financially independent is to not have to stress about making money anymore. But here you are, spending time thinking about it. I would say that if you are on the fence about any money-making decision now, that the answer for you should be a firm "no". I ...
by The Wizard
Sun Apr 23, 2017 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: how much house can we afford? Boston area.
Replies: 50
Views: 3066

Re: how much house can we afford? Boston area.

...My wife and I are also looking for a place to live in the Boston area. We want to live in Brookline, since it's close to the Boston hospitals where I work, but it seems impossible. Even $1.5 million doesn't get something nice. We've got $3+ million in the bank (inheritance + savings), but still ...
by The Wizard
Sun Apr 23, 2017 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: A compliment to the forum and its members!
Replies: 4
Views: 646

Re: A complement to the forum and its members!

Hef Saf wrote: ...Best Wishes, Her-Saf

Thanks for the good words; I tend to agree.
But your username is Hef Saf, not Her-Saf.
If that's a problem, contact a moderator and they can change it for you...
by The Wizard
Sun Apr 23, 2017 1:00 pm
Forum: Personal Consumer Issues
Topic: Recommendation for Adults-only All-Inclusive resort/hotel?
Replies: 21
Views: 2157

Re: Recommendation for Adults-only All-Inclusive resort/hotel?

I have kicked around a similar vacation and same general parameters- no kids, all inclusive etc. An issue I've wondered about - do most of you book these trips locally through a local travel agency? or online or through some 800 #? My fear w/ the 800 # or online business 1000's of miles away is if ...
by The Wizard
Sun Apr 23, 2017 8:42 am
Forum: Personal Consumer Issues
Topic: Six pack for barbecue?
Replies: 77
Views: 4924

Re: Six pack for barbecue?

Shouldn't the beer selection be aligned with the tastes of the guests? This might even mean the inclusion of (gasp) Bud Light. Some beer drinkers are loyal to old brands and may just want to wash down some BBQ with something more thirst-quenching. Some of them might not know how to spell IPA. :D IP...
by The Wizard
Sat Apr 22, 2017 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 112
Views: 8723

Re: Why are pensions revered, but annuities reviled?

...Now, the snapper. Because variable annuities are pushed and oversold so much, "variable annuities" are customarily referred to simply as "annuities." Right. There's definitely a confusion factor when talking about annuities. And the insurance industry is quite possibly OK wit...
by The Wizard
Sat Apr 22, 2017 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: A Little History [from old bank statements]
Replies: 15
Views: 1756

Re: A Little History

retiredjg wrote:Ah, those were the days when you could "assume" someone else's low mortgage. That's long gone!

My initial mortgage in 1976 was at 9.0%...
by The Wizard
Sat Apr 22, 2017 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 112
Views: 8723

Re: Why are pensions revered, but annuities reviled?

Yes. Note: about 60% of my retirement income comes from payout-phase lifetime immediate annuities from TIAA, both fixed (Trad) and variable (TREA and CREF Stock)... I am thinking about SPIA, and wonder why you chose TIAA. Also at what age did you purchase? I contributed tax deferred $$$ to my 403(b...
by The Wizard
Sat Apr 22, 2017 4:47 pm
Forum: Personal Consumer Issues
Topic: Six pack for barbecue?
Replies: 77
Views: 4924

Re: Six pack for barbecue?

Bud light, coors light or miller lite. Those always work. Nothing worse than having to hang out with beer snobs. Beer snobs are bad, but have you ever had to hang out with wine snobs? :shock: To be a proper wine snob, you need an eclectic vocabulary. Beer snobs can usually get away with nodding jud...
by The Wizard
Sat Apr 22, 2017 4:44 pm
Forum: Personal Consumer Issues
Topic: Six pack for barbecue?
Replies: 77
Views: 4924

Re: Six pack for barbecue?

I only buy cans of various IPAs nowadays, but that for me.
Others aren't like me, so I would mix it up...
by The Wizard
Sat Apr 22, 2017 4:38 pm
Forum: Personal Consumer Issues
Topic: Six pack for barbecue?
Replies: 77
Views: 4924

Re: Six pack for barbecue?

jebmke wrote:
Ketawa wrote: A 6-pack means bottled beers.
or cans

Cans are taking over, yes...
by The Wizard
Sat Apr 22, 2017 4:18 pm
Forum: Personal Consumer Issues
Topic: Recommendation for Adults-only All-Inclusive resort/hotel?
Replies: 21
Views: 2157

Re: Recommendation for Adults-only All-Inclusive resort/hotel?

I like both Hedonism II and Couples Negril on Jamaica. Any of the four Couples there should be fine, actually.
You may find cheaper options from new hotels in the area, but I'd be cautious without good recs from trip advisor or elsewhere...
by The Wizard
Sat Apr 22, 2017 10:21 am
Forum: Investing - Theory, News & General
Topic: Tax Deferred vs Taxable Account Calculator?
Replies: 19
Views: 1206

Re: Tax Deferred vs Taxable Account Calculator?

Klang and I agree: trick question. Or, the devil is in the details. Having said that, most people benefit from putting $$ into tax deferred off the top tax bracket (for them) and taking in out in a lower tax bracket. But for Super Savers, once you have a million in tax deferred, putting in even more...
by The Wizard
Sat Apr 22, 2017 10:09 am
Forum: Personal Finance (Not Investing)
Topic: RMD for 2017?
Replies: 13
Views: 1216

Re: RMD for 2017?

mark821 wrote:Thanks everyone. I didn't know the tables remain unchanged.

They might get updated at some point but certainly not every year or two...
by The Wizard
Sat Apr 22, 2017 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank - Savings Account Rate Increased!
Replies: 70
Views: 7773

Re: Ally Bank - Savings Account Rate Increased!

The annualized dividend from total stock market VTSAX is generally greater than 1.05% and is taxed more favorably.
Boo to savings accounts!

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