Search found 73 matches

by Zedon
Mon Sep 26, 2022 3:52 am
Forum: Personal Investments
Topic: Simplifying portfolio
Replies: 13
Views: 1296

Re: Simplifying portfolio

I think a VTI/Bond portfolio can work for ease of use, but you should research return rates to determine your and your heirs risk tolerance. My parents and my aunt in their 70's both do 80% VTI and 20% bonds and seem to be comfortable. I helped my dad get away from an advisor who had them in 23 different things, way to complicated for him. There is definitely some value to simplifying. A target date fund could work too.
by Zedon
Sun Sep 25, 2022 8:59 pm
Forum: Personal Investments
Topic: Pre vs post tax contribution help
Replies: 22
Views: 1434

Re: Pre vs post tax contribution help

I will have a pension when I retire that puts me in the 22% bracket at least. If I were at 12% I'd definitely be doing all Roth. I'm currently in the 24% bracket and doing 50/50. Also have 9.3% state tax.
by Zedon
Thu Sep 01, 2022 1:45 am
Forum: Personal Investments
Topic: Pension and 403B
Replies: 28
Views: 2199

Re: Pension and 403B

I wish I had treated my pension like bonds, I would have been 100% equities in everything else. It only took my 20 years to realize that. Now that I am fully vested its a lot more comforting knowing I will have at least some solid revenue stream in retirement.
by Zedon
Sat Jul 02, 2022 3:58 am
Forum: Personal Investments
Topic: Talk my daughter out of this plan
Replies: 104
Views: 13897

Re: Talk my daughter out of this plan

They may just out gain the average bogle head and that's not just a small chance.

I see a lot of people say they are wrong but that's not a fact. They are just not using the bogle head way which is a safer, slower, and steadier path. They are able to absorb more risk.

I do the same thing, I have a pension and a 401k and 457b which all use essentially the boglehead strategy. The tiny amount I put in the roth ira I will buy some individual stocks knowing they could go big or be a dud.

At least they aren't in crypto or some other Ponzi scheme.

It's likely the pensions will cover all of their retirement needs so anything besides that is gravy.
by Zedon
Sun Jun 12, 2022 7:59 pm
Forum: Personal Investments
Topic: Seeking retirement insights
Replies: 19
Views: 3623

Re: Seeking retirement insights

Me: 72, retired 11 years ago. Have loved the freedom to do whatever we want whenever we want to. We probably aren’t as well off as many in this forum but we realized that there was no need to have millions to live a happy, comfortable life. Don’t wait too long to retire, I repeat don’t wait too long to retire! If you at all sensible about your finances, you will be fine! Enjoy your life, it goes by very fast. I think this is very good advice, make sure your expenses and wants are covered and don't get caught up in maximizing every little thing. Give yourself time to enjoy your retirement. I plan to have age 63 be the oldest age I retire at, baring some upheaval. If you enjoy your job, I'd stick around and take the recurring payment, it mus...
by Zedon
Fri Jun 10, 2022 4:01 am
Forum: Personal Investments
Topic: At what point do you stop contributing to employer sponsored retirement plans?
Replies: 43
Views: 9199

Re: At what point do you stop contributing to employer sponsored retirement plans?

If you are just going to buy a fund/etf that doesn't have dividends and leave it in there until you need it or pass it on, then after tax may be better than a 401k depending on your tax bracket. If your your retirement income puts you in the 24% bracket or higher it may be better to just put it in an after tax account and pay long term capital gains, right? 20% vs 24%?
If you can do Roth, then never stop.
by Zedon
Fri Jun 10, 2022 3:49 am
Forum: Personal Investments
Topic: Vanguard vs Fidelity for assets
Replies: 52
Views: 9259

Re: Vanguard vs Fidelity for assets

dcabler wrote: Thu Jun 09, 2022 4:55 am
No, you can't buy them through a brokerage. That's why I noted above "...except my current 401k, our checking/savings and I-bonds"...
Specifically, for those exceptions, it's as follows:
My current 401K: Vanguard
Checking/Savings: Credit Union
I-bonds: Treasury Direct

Cheers.
My bad, I completely misread that.
by Zedon
Thu Jun 09, 2022 3:22 am
Forum: Personal Investments
Topic: Vanguard vs Fidelity for assets
Replies: 52
Views: 9259

Re: Vanguard vs Fidelity for assets

Fidelity - the bulk of our holdings are there: Our IRA's, my HSA, and a taxable account. That is, everything except my current 401K, our checking/savings, and I-bonds . No complaints whatsoever for anything that matters. When my current job ends in a month or two as I enter retirement, the 401K will be rolled over to my Fidelity IRA. Why Fidelity? As others have noted, I've had nothing but good customer service from them where it mattered and I own exactly the investments I wish to own and cheaply. Beyond that, they leave me alone unless I approach them. Plus, as I age, I more and more see the need to simplify some things in case I go 6 ft under before my DW does. Consolidating to a single brokerage with good customer service is part of th...
by Zedon
Thu Jun 09, 2022 2:50 am
Forum: Personal Investments
Topic: Bond allocation needed if also have pension
Replies: 11
Views: 1372

Re: Bond allocation needed if also have pension

Knowing what I know now I wish I had never had bonds, having bonds in my 20s and 30s was just silly and only for psychological reasons. I now view that as wasted growth I could have had. I also feel it's important to know your risk tolerance. I learned I have a fairly high risk tolerance, was never tempted to sell in any down turn. This may be in part due to the pension. Since I have a pension and am now vested, I feel I still don't need bonds, since I have guaranteed money. I could take my pension next year and get ~40k a year for the rest of my life with a 2% COLA.
by Zedon
Fri Mar 12, 2021 3:11 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1265182

Re: Refinance Mega Thread

-Locked my rate with Better and continue to check with LenderFI, Owning and Loan Cabin - Decided to go for a higher rate and higher credit to 2.375% January 16 - LoanDepot matched to 2.25% no cost but do not want to give me more credit at 2.375% so the LO closed my application in LoanDepot January 17 - one LO in LoanDepot picked-up my application again it again. Gave me 2.375% with 3,093 closing cost and 6,037 credit with no appraisal. January 22- Better matched the offer of LoanDepot but still have appraisal. Mar 4 - Closed my loan with Better. Did not shop for title company as it was Radian. This process took quite sometime for me to do but it was worth it. I got from 2.625% to 2.375% with higher lender credit. I like Better's process fo...
by Zedon
Thu Apr 16, 2020 3:55 am
Forum: Investing - Theory, News & General
Topic: What in the world is propping up this market?
Replies: 214
Views: 25296

Re: What in the world is propping up this market?

My opinion: They aren't biologists or DR's or epidemiologists. They hear someone is working on a vaccine and think the cure is near. It may be, or it could be a year or 3 away or never. Economy may reopen but without a vaccine we will have a second wave at the end of the year. People are overly optimistic but they may still be right. The market is pretty reactive right now. If you are long term, +5 years this won't matter if you are 3 years or less I'd be cautious. Some industries will be hit for a long time and some companies will not survive.
Bouncing back to pre-virus levels this year, almost no chance even with a perfect vaccine.
by Zedon
Wed Mar 18, 2020 2:39 am
Forum: Investing - Theory, News & General
Topic: CalPERS Savings PLUS changes on hold
Replies: 30
Views: 912

Re: My 401k /457b (California Savings Plus) Removing Most Index Funds

They seem to be trying to push people toward either actively managed funds or target date funds. I am now more likely to move towards PCRA now, but they do not make it easy. Their choices were mediocre before and this is not any better so I think I really have no choice but to go to Schwab if I want to have a balanced portfolio and not be in a target date fund. With the market in turmoil I'm not sure that this is the best time to make a move when the money will apparently be out of the market for multiple days.
by Zedon
Fri Mar 13, 2020 1:26 am
Forum: Investing - Theory, News & General
Topic: How is this pandemic different than 2008?
Replies: 137
Views: 9343

Re: How is this pandemic different than 2008?

This one is different because the reason is not a financial cause, it is an outside cause that no amount of rate cutting or monetary infusion can fix. They can give loans to businesses to prop them up but that won't make the fearful customers come back until they feel safe. If this is short term, done in a few months, then most industries and companies will recover with some lost revenue. If this goes 9 months or a year or more it will have more dire consequences on certain industries and companies. Some won't make it. When it hit China it started hitting the supply, when it began hitting the rest of the world it started killing demand. All travel and tourism related industries will take huge hits that won't be recuperated. Currently the un...
by Zedon
Sun Nov 03, 2019 3:15 am
Forum: Personal Investments
Topic: Do you consider pensions as part of your overall asset allocation?
Replies: 67
Views: 6815

Re: Do you consider pensions as part of your overall asset allocation?

The fact that I have a pension coming does affect my current investment allocation. I am ~90% stocks @ age 45.

I just locked into my pension this year with 20 years of work. So even if i walked away tomorrow I could still get my pension at 55. It would be $55k with a COLA. I will also have 80% of my health care premiums covered.

If I make it to 55 I should be able to live off just my pension. That's why I am nearly all in on stocks.

If I knew without a doubt that I was going to work at my current employer until I retire which is the plan and goal, I probably wouldn't need to invest, but you never know.
by Zedon
Sun Oct 20, 2019 7:17 pm
Forum: Investing - Theory, News & General
Topic: Pensions - Why Isn't Time In the Market a Part of the Formula?
Replies: 30
Views: 4701

Re: Pensions - Why Isn't Time In the Market a Part of the Formula?

The Pension is the biggest benefit for working for the CA govt along with the health insurance, it's not the pay. They are trying to keep you with them. That money is not the same as putting it in an IRA. I have been with CA for 20 years and think it would be foolish of me to leave at this point. Those first 5 years are where you need to decide if it's for you. Luckily I really like what I do. At 20 years, my lump sum payout would be only $123k. And that would be taxed. Once I hit my retirement age I will have 30 years and I will get a guaranteed 60% of my last pay for the rest of my life plus some inflationary adjustment. I'll take that over all the rest of my investments combined. Hard to walk away. What you could do is just come back for...
by Zedon
Fri Aug 23, 2019 4:43 am
Forum: Personal Investments
Topic: When Did You Ease Up On Saving Aggressively?
Replies: 171
Views: 17490

Re: When Did You Ease Up On Saving Aggressively?

About 40% of my salary goes towards retirement. I've just become fully vested(20 years) in my pension this year so I will probably pull back a bit and maybe put more towards paying off mortgage early. The pension should cover about 80% of my retirement needs if I retire at 55. If I can pay off the house early with the money I pull back with, I will have more than I need. I need to run some numbers to see how much I need to put toward the house to get it paid off to coincide with my retirement date.

Once I knew I had enough to retire on at my current lifestyle I would put any extra money towards non-reoccurring expenditures like housing/remodeling or even a vacation.
by Zedon
Sat Jul 06, 2019 3:22 am
Forum: Personal Investments
Topic: Any way to at least indirectly invest in SpaceX or Blue Origin?
Replies: 8
Views: 1390

Re: Any way to at least indirectly invest in SpaceX or Blue Origin?

rj342 wrote: Thu Jun 27, 2019 1:00 pm For an individual small investor that is.

No IPO planned for either as far as I know, but is there some indirect way?

Yes, it is the opposite of diversification.
I doubt they want to go public, after the scrutiny that Tesla has had to go through. Maybe once they are sure they would be consistently profitable.

Look at the companies that have invested in SpaceX, I know there is a list out there but I'm to lazy to go find it right now. Maybe it was Google and Fidelity, probably others, but it's such a small part of their worth it probably won't make much of a difference.
by Zedon
Fri Jul 05, 2019 7:47 pm
Forum: Personal Investments
Topic: With a Pension should I start Roth versions of my Employer retirement accounts
Replies: 13
Views: 1264

Re: With a Pension should I start Roth versions of my Employer retirement accounts

I am 45 and can retire at age 55. I will have 30 years at that point and get 60% of my salary. ... I am currently in 22% fed bracket, I don’t think I will ever be below the 22% bracket or maybe even the 24% bracket plus I have the CA state tax at 9.3%. Would 60% of your current salary keep you in today's 22% bracket, or would you drop to the 12%? Apologies if you already remember: need to subtract (at least) the $12.2K standard deduction before comparing to the bracket numbers. Yes, I should be close to $80k in today's dollars. With current rules I don't think I can get below the 22% bracket. That implies you are making ($80K + $12.2K)/0.6 = $154K now, putting you well within the 24% bracket now. Is that correct? $80k is what 60% of my cur...
by Zedon
Fri Jul 05, 2019 6:20 pm
Forum: Personal Investments
Topic: With a Pension should I start Roth versions of my Employer retirement accounts
Replies: 13
Views: 1264

Re: With a Pension should I start Roth versions of my Employer retirement accounts

FiveK wrote: Fri Jul 05, 2019 5:30 pm
Zedon wrote: Fri Jul 05, 2019 6:35 am I am 45 and can retire at age 55. I will have 30 years at that point and get 60% of my salary.
...
I am currently in 22% fed bracket, I don’t think I will ever be below the 22% bracket or maybe even the 24% bracket plus I have the CA state tax at 9.3%.
Would 60% of your current salary keep you in today's 22% bracket, or would you drop to the 12%?

Apologies if you already remember: need to subtract (at least) the $12.2K standard deduction before comparing to the bracket numbers.
Yes, I should be close to $80k in today's dollars. With current rules I don't think I can get below the 22% bracket.
by Zedon
Fri Jul 05, 2019 5:13 pm
Forum: Personal Investments
Topic: With a Pension should I start Roth versions of my Employer retirement accounts
Replies: 13
Views: 1264

Re: With a Pension should I start Roth versions of my Employer retirement accounts

If you stay single, you will probably never be in a bracket lower than 22% (in my opinion). Paying 22% now vs 22% later is a wash. Paying 22% now vs 25% later is a win. If you marry, even if tax rates revert, you may be in the 15% bracket when retired. So paying 22% now is not much of a win....but with a pension that will cover a good part of all of your expected expenses you do not want to accumulate a HUGE tax deferred account because it may cause problems when you reach 70.5 (RMD time). I'd probably go for scenario 3.5 (something between 3 and 4) for now and reconsider when/if tax rates revert. Or if you marry. In retirement, you want both tax-deferred and Roth (or taxable) resources. With a pension, having a very large tax-deferred acc...
by Zedon
Fri Jul 05, 2019 7:03 am
Forum: Personal Investments
Topic: With a Pension should I start Roth versions of my Employer retirement accounts
Replies: 13
Views: 1264

Re: With a Pension should I start Roth versions of my Employer retirement accounts

If you use Scenario 3, will you still be in the 22% bracket?
Scenario 3 just puts me into the 24% bracket by about $2k.

Are you single? If single, are you likely to stay that way?
I am single, staying that way is an unknown.

If you retire at 55, how much of your living expense be covered by the 60% pension?
Very close to all, about 95%. Close enough being this far out.
by Zedon
Fri Jul 05, 2019 6:35 am
Forum: Personal Investments
Topic: With a Pension should I start Roth versions of my Employer retirement accounts
Replies: 13
Views: 1264

With a Pension should I start Roth versions of my Employer retirement accounts

Hi, I work for the State of CA. I have a pension coming at retirement. I just passed the 20 year mark, so I am fully vested. I am 45 and can retire at age 55. I will have 30 years at that point and get 60% of my salary. My current plan is to retire from the state between 55 and 63, 55 if I am tired of working and 63 if I’m still enjoying my job. If I do make it to 63, I will get about 95% of my salary. I got a late start on investing in my 401k and 457(b), I started maxing them around the beginning of 2015. There is no match. I have about $100k in each as well as a 100k in a Roth IRA. I am still currently maxing both as well as a Roth IRA. I am currently in 22% fed bracket, I don’t think I will ever be below the 22% bracket or maybe even th...
by Zedon
Fri Jan 04, 2019 5:46 am
Forum: Personal Investments
Topic: Calculating savings rate
Replies: 50
Views: 3596

Re: Calculating savings rate

Knowing that in all likelihood in retirement I will have taxes probably at the same rate as I currently have, makes a difference in how I figure my % savings for retirement. Money in a regular 401k is not equal to money in my Roth or even in taxable. Also living in CA increases my taxes that much more. I count money in IRAs, money in 401k, money in 457b, and money in taxable investment accounts set aside for retirement only toward my % savings which puts me at about 32% of gross earnings which is probably about 2/3 of my expenses for 1 year. The tricky part is figuring out when that savings plus pension equals full expenses for my retirement lifestyle. I have to work at least 10 more years and maybe as many as 18, so I'll keep saving as muc...
by Zedon
Thu Nov 08, 2018 3:30 am
Forum: Personal Investments
Topic: Are We In A Real Estate Bubble?
Replies: 114
Views: 17287

Re: Are We In A Real Estate Bubble?

If I had an extra house I would sell, we are not in a bubble but we are set up to build one. As loans get more expensive and it gets easier to get them, less capable people will begin to carry debt they won't be able to handle in the next recession.
by Zedon
Tue Oct 30, 2018 3:49 am
Forum: Investing - Theory, News & General
Topic: Why I'm 100% stocks
Replies: 149
Views: 25459

Re: Why I'm 100% stocks

I think I am around 95% stocks but I also have a pension coming(20 years in). So I feel like I can take more risk and have not had the urge to sell in a downturn with my limited investing. If I work to 55 my pension should pay for my current lifestyle at 60% of current income, but I will probably stay longer and get a little higher pension. I think I would be 80/20 if I didn't have a pension.
by Zedon
Tue Oct 30, 2018 2:10 am
Forum: Investing - Theory, News & General
Topic: 401k down 8% this month
Replies: 58
Views: 8483

Re: 401k down 8% this month

I'm down not sure how much, what I do know is that I bought more today.
by Zedon
Sun Apr 29, 2018 6:24 am
Forum: Personal Investments
Topic: More aggressive portfolio with a pension?
Replies: 52
Views: 9049

Re: More aggressive portfolio with a pension?

I have a pension coming too. In 11 months I am guaranteed 40% of my income which will probably cover 75% of my expenses. I have completely counted on that until about 3.5 years ago when I started maxing 401k and 457b for some extra money in retirement and just in case the govt fails on my pension and SS. I also have a little in some IRAs. I definitely am more aggressive because of the pension. I am about 95% stocks in my IRAs and 90/10 in my 401k/457b, but I am still fairly early in the accumulation so maybe my risk tolerance will change as I see the account grow but to this point I have never had the urge to sell as the market fluctuated. If I work to 63(sweet spot for pension formula) then my pension will more than cover my retirement exp...
by Zedon
Wed Apr 04, 2018 2:15 am
Forum: Personal Investments
Topic: How do Bogleheads Take Advantage of Dips When Fully Invested?
Replies: 55
Views: 9886

Re: How do Bogleheads Take Advantage of Dips When Fully Invested?

I think some people are still waiting for a dip.
by Zedon
Sun Mar 11, 2018 6:03 am
Forum: Personal Investments
Topic: Amount saved by age
Replies: 58
Views: 13000

Re: Amount saved by age

Maybe I'll take a minimum wage job after I finish my career and before I retire so I can say I have 40x my salary instead of 8x. I think that metric is silly. 100k in salary is not the same as 100k in retirement income. We should really be looking at what we will need in retirement per year. Expenses in retirement are what you need to worry about. Save as much as you can until you feel comfortable you will be able to reach those goals. I was only intermittently able to save in my roth IRA until I was 39. I have a pension coming so that lessened any urgency I had. I got a good raise/promotion and now I always max my roth/401k/457b and pension. I will be behind for a bit but I think I can catch up by the time I am somewhere between 55 and 63....
by Zedon
Fri Jan 05, 2018 6:52 am
Forum: Personal Investments
Topic: Scottrade Question
Replies: 19
Views: 1824

Re: Scottrade Question

can you just leave $1 in the account to avoid the termination fee?
by Zedon
Fri Jan 05, 2018 6:47 am
Forum: Personal Investments
Topic: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds
Replies: 97
Views: 18478

Re: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds

I also have a hard time owning much bonds. My retirement window is 11 to 19 years. I own 10% bonds and view them as insurance on lessening a loss, not a way to make profit. As I build my wealth I will probably increase but not yet. I do have a pension coming so that allows me to feel more confident at owning a low % of bonds. My father is in his early 70's and retired for a while, he's still 80/20, he told me he will move to 70/30 this year.
by Zedon
Wed Nov 08, 2017 3:04 am
Forum: Personal Finance (Not Investing)
Topic: How old are you and how much do you save for retirement a year
Replies: 244
Views: 42745

Re: How old are you and how much do you save for retirement a year

Well I am playing catchup.
age 43
Only maxed out Roth IRA up until 39, was about all I could afford.
Last 3.5 years saving ~40k a year after a big raise, max roth ira, max 401k, max 457b.
Still a long ways behind but I do have a good pension if I keep working here, been here 18 years so far. Just need 2 more to vest.
If all goes well, retire at 55 with 60% of salary in a pension, the retirement accounts will be gravy. Could stay longer.
by Zedon
Tue Oct 31, 2017 5:04 am
Forum: Personal Consumer Issues
Topic: "Best" Online Degree if already a college graduate
Replies: 120
Views: 18111

Re: "Best" Online Degree if already a college graduate

I think this probably greatly depends on the field and the school. I am in the sciences and have hired over 300 people in my 17 years. I don't think one has had an online degree. I would be skeptical but willing to hire someone with an online degree if they had a good interview and/or decent experience. I do feel the prevalence of upper degrees will become more common online.
by Zedon
Wed Oct 25, 2017 3:01 am
Forum: Personal Investments
Topic: Can one have too much money in tax-deferred
Replies: 128
Views: 17184

Re: Can one have too much money in tax-deferred

I think this can be a problem for people with large RMDs on top of a good sized pension. My pension will probably put me in the 28% before SS or RMDs are added on if I work as long as I think I will. Problem is we can't see how taxes are in the future. I may stop contributing max to trad 401k and 457b and contribute something lower to roth 401k. I will never have room for roth conversions. It's not the worst problem to have just a bit wasteful. I am only halfway through my working life. I will reassess 10 years before retirement.
by Zedon
Sun Oct 08, 2017 3:32 am
Forum: Investing - Theory, News & General
Topic: Has your "risk tolerance" been tested?
Replies: 105
Views: 11439

Re: Has your "risk tolerance" been tested?

I was lightly tested in 2008, I only had been working for about 8 years of low pay and didn't have much invested but I did stay the course with all I had in my roth, but it did affect me when I had new money to put in, even to this day, which is why I try to make it automatic otherwise I would keep hesitating. I now have a job with a pension which I will be fully vested in after 1.5 more years so that makes my tolerance much greater. A drop from 22k to 6k in the DOW would definitely make me a bit stressed but I don't feel I would sell. I am currently 75/25 and will probably change that about 10 years out from retirement.
by Zedon
Sun Jun 25, 2017 4:05 am
Forum: Personal Investments
Topic: Is my pension a Fixed asset?
Replies: 37
Views: 7782

Re: Is my pension a Fixed asset?

If the pension fund fails, the shortfall might not be made up at all. Permanent haircuts might be made instead. Look at Illinois and New Jersey. A tax increase won't be enough to make the pension plans solvent. And if the equity markets decline enough to cause haircuts for the pension plan, a large equity allocation for investments outside of the pension plan will only hurt more and provide insufficient diversification. While there are a few pensions in trouble that we see in the news, the vast majority are fine or will be propped up if needed. Overall, I think pensions are as definite as any other part of your portfolio could be. I treat mine as my lowest possible take *.7. That's a base of $52k a year if I retire at 55. To consider it an...
by Zedon
Fri Jun 16, 2017 1:03 am
Forum: Personal Investments
Topic: Is my pension a Fixed asset?
Replies: 37
Views: 7782

Re: Is my pension a Fixed asset?

I will have a pension also and I will consider it a fixed asset once I'm guaranteed it even with job loss. I am on year 18 of 20 to lock in. I am currently 70% equities in my invest-able money. Once I am locked in I will go close to 100% equities since I feel my pension will cover all of my expenses in retirement even with all realistic possible cuts. If I was just starting out I would not count it as a chance for job change may be likely. My investments will just be gravy.
At least that's the plan.
by Zedon
Sun May 28, 2017 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: Not Another Payoff The Mortgage Thread....
Replies: 38
Views: 6165

Re: Not Another Payoff The Mortgage Thread....

I think a large part of it is personal preference.
Can you handle debt? How secure is your job, retirement?
Personally I do not have enough to pay mine off but I don't think I would if I could, it's at a very low interest rate and as others have pointed out you will be paying the same in 15 or 30 years even though inflation has made that amount much less valuable. I think the fact that I have a job where I have a lot of stability and a pension coming makes me more secure with long term debt. I do plan to pay it off 5 years early to coincide with my retirement at age 63.
by Zedon
Sun Apr 09, 2017 11:17 pm
Forum: Personal Investments
Topic: Roth vs. Traditional w/pension
Replies: 8
Views: 1584

Re: Roth vs. Traditional w/pension

I am in a similar boat but half way to retirement. I will get a sizeable pension, currently at least 75k in todays dollars with COLA.I have just barely been maxing my 457b, If I had a little more I would switch to Roth 457b, but it's hard for me to see it get taxed and not have a full 457b so for now I have been doing traditional. It's a question I continually wrestle with. If tax rates actually change in the near future it may push me one way or the other.
But it does seem that roth is the way to go if you know its 25 or 28%.
by Zedon
Sun Apr 02, 2017 4:02 am
Forum: Personal Investments
Topic: Is anyone decreasing % of bonds this year?
Replies: 91
Views: 11644

Re: Is anyone decreasing % of bonds this year?

I think i will be adjusting. I am at 18.5% bonds @ age 43. With SS and a decent pension coming I think I will go 90/10 sometime in the next year or so until I am 10 years from retirement.
by Zedon
Tue Feb 21, 2017 3:51 am
Forum: Personal Investments
Topic: The need for bonds if I have a pension?
Replies: 65
Views: 11537

Re: The need for bonds if I have a pension?

I am in a similar situation. I have a pension coming. I do consider it a substitute for bonds. I will retire between 12 and 20 years from now. I can live off the pension. I consider it fairly safe, much safer than the stock market. Add on to that SS a decade later and I consider the rest of my investments(401k, 457b, and Roth IRA) as bonus to be used for either big purchases when I am retired or to leave to my beneficiaries. I think my current bond allocation is around 7 percent and it will only decrease from here. I also consider my cash a surrogate for bonds. I have maybe 12% in cash too but that will go into stocks shortly. I think it's really about your tolerance for volatility. What if the market goes down 50% for 5 years, can you stay...
by Zedon
Sun Jan 15, 2017 1:23 am
Forum: Personal Investments
Topic: thoughts about financial advisors comments regarding roth 401k
Replies: 30
Views: 4390

Re: thoughts about financial advisors comments regarding roth 401k

"Money out of trad 401 K is not all taxed at 25%,it is taxed at 0%,10%,15% and 25%" (trad. IRA,401a,457) what if you have already filled up brackets into 25% because of pension,Social Security,income thrown off of taxable investment assets including capital gains distributions,qualified dividends,Bond dividends ? Because of all the money saved by not having Ed Jones and Ameriprise :shock: Old enough to have been working and saving when there was no such thing as an IRA or 401k (there) Knocking on door of :?: bracket? (Single) This is a good point, if you knew all of the other income besides your RMDs you'd know your tax rate. I will have a pension and envision I will be in the 25% bracket so this is always a question I have toile...
by Zedon
Fri Nov 18, 2016 4:19 pm
Forum: Personal Investments
Topic: I market timed & learned. Any Advice?
Replies: 52
Views: 8871

Re: I market timed & learned. Any Advice?

I always time the market when I put money in or out, it has to go in/out sometime so I might as well do it with an educated guess. Never regretted it. I'm not a frequent trader though.
by Zedon
Thu Apr 07, 2016 5:20 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads too conservative?
Replies: 135
Views: 21533

Re: Are Bogleheads too conservative?

I think Bogle style is gets you 90% of what you need, you could do better but it would require a lot of work and research continually.
by Zedon
Thu Apr 07, 2016 5:19 am
Forum: Investing - Theory, News & General
Topic: Are personal mortgages inherently risky (rent vs own)
Replies: 16
Views: 2128

Re: Are personal mortgages inherently risky (rent vs own)

I used to be hesitant too but then I put 20% down and bought a house in2012. My mortgage(PITI) will be $1800 til I pay it off, what's the risk? So for $150 more than I was renting I actually own. And rents have skyrocketed in the last 4 years, my house would cost me $3k per month to rent so it's a huge win. Also it doesn't matter what your house costs while you are living in it, only when you buy/sell. If my house was worth $100 it changes nothing about my lifestyle except my taxes.
by Zedon
Thu Apr 07, 2016 4:18 am
Forum: Investing - Theory, News & General
Topic: Baby Boomers Doubling in next 20 yrs predictions ?
Replies: 50
Views: 10422

Re: Baby Boomers Doubling in next 20 yrs predictions ?

Health care is where it will be, hopefully there are enough health care workers to take care of everyone.
by Zedon
Thu Apr 07, 2016 4:10 am
Forum: Investing - Theory, News & General
Topic: Are you planning to leave an "estate"?
Replies: 74
Views: 11598

Re: Are you planning to leave an "estate"?

Yes, but I don't know who I will leave it to. My window for kids is disappearing. Maybe my brother will have some. It's the only reason I save since my pension and SS should cover all my needs in retirement. I think it will also give me some security just in case my pension or SS go belly up.
by Zedon
Mon Mar 14, 2016 2:52 am
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23996

Re: For Parents Who Have Given a Child Money For Home Down Payment

Is there a way to call it a loan, that becomes inheritance when the parents pass on. That way the in law won't get it. Also say something like pay it back in full when the house is sold. You can always reloan/gift at that point. Or just put that house in you child's name since you are giving the full down payment.
by Zedon
Wed Feb 17, 2016 4:55 am
Forum: Personal Investments
Topic: New to Roth IRA
Replies: 16
Views: 1871

Re: New to Roth IRA

I tried opening one at Vanguard but they wouldn't take money from my Credit Union for some reason when I tried to transfer money into the account. Not sure why their system is so limiting, makes me want to stay with Scottrade which at least has an office less than 10 miles from me.