Search found 431 matches

by antiqueman
Sun Apr 22, 2018 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Best Alternative to a Pension (DB )
Replies: 12
Views: 961

Re: Best Alternative to a Pension (DB )

This would come close, but normally you would not receive the same benefit from a SPIA that you would from a DB. It would cost more to get the same benefit with a SPIA. Also where a State DB is at issue, I think most would agree that a State DB is (unless the State changes the rules) more secure tha...
by antiqueman
Sun Apr 22, 2018 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Best Alternative to a Pension (DB )
Replies: 12
Views: 961

Best Alternative to a Pension (DB )

I read a thread yesterday about a forum member's employer freezing his and other employees pension near his retirement date. The thread reminded me how fragile the guarantee of a DB pension may be for many. I posted a question 2 weeks ago , seeking advice on whether I should buy back abut 7 years of...
by antiqueman
Fri Apr 13, 2018 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Should I Buy Back into Retirement Fund. Math experts.
Replies: 5
Views: 630

Should I Buy Back into Retirement Fund. Math experts.

I have had a part time state government job. I will have a pension that is presently calculated to be around $475.00 a month. The yearly amount increases each year by 3%. It will be a joint annuity for both my wife and myself and pays till last to die. She is 61. I am 64. Many years ago I had a full...
by antiqueman
Sat Mar 31, 2018 11:30 am
Forum: Investing - Help with Personal Investments
Topic: iShares Corporate Bond Ladder
Replies: 3
Views: 470

Re: iShares Corporate Bond Ladder

I looked at them also. The yield is slightly more on some of the years than corresponding CD's. But is it worth the risk of some of the bonds in the ETF going bankrupt . From what I can determine it seems that most of the bonds in the ETF are from well established companies but over time, there migh...
by antiqueman
Mon Mar 26, 2018 12:20 pm
Forum: Investing - Theory, News & General
Topic: Prime Harvesting--Do I have the steps accurate
Replies: 8
Views: 1164

Re: Prime Harvesting--Do I have the steps accurate

Thanks to all who responded. I thought I perhaps had the 120% number incorrect but wasn't sure. I appreciate everyone clearing up my ignorance on that point. I think why I thought that the increase would need to be that significant is that I had read threads that indicated that harvesting didn't usu...
by antiqueman
Sun Mar 25, 2018 6:19 pm
Forum: Investing - Theory, News & General
Topic: Prime Harvesting--Do I have the steps accurate
Replies: 8
Views: 1164

Prime Harvesting--Do I have the steps accurate

For those of you who are familiar with McClung's prime harvesting please let me know if the following steps are accurate to implement, (1)Total portfolio 1 million dollars (2) $ 300 ,000 place in stocks at beginning of retirement and 700,000 put in bonds at that time. (3) Only when the $300,000 reac...
by antiqueman
Fri Mar 23, 2018 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Why can you "spend more" if you buy SPIA?
Replies: 12
Views: 1112

Re: Why can you "spend more" if you buy SPIA?

Thank you to everyone that responded to my question . Your comments were very helpful.

Bobcat concerning the Bee Gees--one of my top three favorite groups. What talent! So sad that Maurice and Robin left us so soon.
by antiqueman
Fri Mar 23, 2018 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Why can you "spend more" if you buy SPIA?
Replies: 12
Views: 1112

Re: Why can you "spend more" if you buy SPIA?

I am the original poster.

I would not annuitize all of our assets. It would be no more than 20 percent of investable assets. Would doing this- at least in theory- provide more spendable income?
by antiqueman
Fri Mar 23, 2018 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Why can you "spend more" if you buy SPIA?
Replies: 12
Views: 1112

Why can you "spend more" if you buy SPIA?

I have read a number of times on the forum that retirees can spend more if they purchase an Annuity. What are these statements based on? Is It true in this low interest environment? I plan to retire in 2 years. I think I have sufficient assets with social security to pay our yearly expenses for 30 y...
by antiqueman
Tue Feb 13, 2018 12:56 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 7824

Re: how did you determine your risk tolerance?

I notice that many responses to this question focus on how long you could live on your savings to help determine your AA. I have a severe problem with buying equities. I have enough income-- a substantial part in tips- to last 20 years and never touch equities. I could buy more equities but do not e...
by antiqueman
Tue Feb 06, 2018 11:29 pm
Forum: Investing - Theory, News & General
Topic: Matching a TIPS bond ladder with ST and LT TIPS bond funds
Replies: 98
Views: 5030

Re: Matching a TIPS bond ladder with ST and LT TIPS bond funds

For example, I am in the process of building a 25 year TIPS ladder providing X real dollars per year from 2018 to 2043. So I have set aside 2.5X for 2018, and am buying 5X in TIPS to mature in each of the years 2023, 2028, 2032, and 2040, as well as 2.5X in 2043. I am buying at auction and on the se...
by antiqueman
Sun Feb 04, 2018 12:19 pm
Forum: Investing - Theory, News & General
Topic: Matching a TIPS bond ladder with ST and LT TIPS bond funds
Replies: 98
Views: 5030

Re: Matching a TIPS bond ladder with ST and LT TIPS bond funds

Let's take the case of buying one 10 year TIPS bond. If I had purchased that bond at auction in 2016 it will pay me [u]in 2026[/u] when it matures [b][color=#BF0000]$1,000 in real 2016 dollars.[/color][/b] If I had purchased one 10 year TIPS bond at auction in 2017 it will pay me [u][u]in 2027[/u][/...
by antiqueman
Sat Feb 03, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: Matching a TIPS bond ladder with ST and LT TIPS bond funds
Replies: 98
Views: 5030

Re: Matching a TIPS bond ladder with ST and LT TIPS bond funds

The $10K bond you purchased in 2018 would have the same purchasing power in 2028. However, when you are buying a new bond for your ladder in 2028, how much do you need to buy? Because of inflation it won't be 10K. Thank you Stulz. Based on the information you provided, I think I understand my confus...
by antiqueman
Sat Feb 03, 2018 6:49 pm
Forum: Investing - Theory, News & General
Topic: Matching a TIPS bond ladder with ST and LT TIPS bond funds
Replies: 98
Views: 5030

Re: Matching a TIPS bond ladder with ST and LT TIPS bond funds

Holding a ladder of bonds is not so simple either. You have to deal with the reinvestment of all the dividends and the fact that a real $15,000 in 2015 is not the same as a real $15,000 in 2018 and a real $15,000 in 2021 is different than either of the other two. #Cruncher's TIPS spreadsheets deal w...
by antiqueman
Sun Jan 14, 2018 8:54 pm
Forum: Investing - Theory, News & General
Topic: Jan 2018 TIPS Auction
Replies: 17
Views: 1857

Re: Jan 2018 TIPS Auction

Thank you to all who replied.

Saltycaper, thank you for the CPI-U breakeven inflation rate information.
by antiqueman
Sun Jan 14, 2018 2:27 pm
Forum: Investing - Theory, News & General
Topic: Jan 2018 TIPS Auction
Replies: 17
Views: 1857

Re: Jan 2018 TIPS Auction

The breakeven inflation rate is just the rate of inflation that would cause a nominal Treasury bond to have the same return as a TIPS of equal maturity. If the nominal bond is yielding 3% and the TIPS is yielding 0.5%, the breakeven inflation rate is 2.5% (nominal yield minus TIPS yield). If inflati...
by antiqueman
Sat Jan 13, 2018 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Pension service credit purchase: yes or no?
Replies: 16
Views: 999

Re: Pension service credit purchase: yes or no?

I have a similar option as OP. Except by statute , the retired employee receives 3% of the previous years benefits, each year. I have considered buying about 6 years of time. It would increase the monthly benefit substantially . But---here is the issue-- the plan is only 60% funded. It is a state pl...
by antiqueman
Sat Jan 13, 2018 8:56 pm
Forum: Investing - Theory, News & General
Topic: Jan 2018 TIPS Auction
Replies: 17
Views: 1857

Re: Jan 2018 TIPS Auction

As a follow up to my original question, will someone explain to me how the "break even " inflation rate is determined. I know determining the break even inflation rate should be simple, but for some reason I have trouble with the concept.

Thanks
by antiqueman
Sat Jan 13, 2018 8:44 pm
Forum: Investing - Theory, News & General
Topic: Jan 2018 TIPS Auction
Replies: 17
Views: 1857

Jan 2018 TIPS Auction

Anyone considering buying at the 10 year tips auction next week?

Based on the yield of the current tips maturing in 2028, the yield next week should be between.50 and.60.

Thanks
by antiqueman
Thu Jan 11, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: How many years of fixed income for Sequence of Return Risk
Replies: 26
Views: 2119

Re: How many years of fixed income for Sequence of Return Risk

[quote=itstoomuch post_id=3714935 time=1515701104 user_id=58805
.
There are other methods to insure your retirement portfolio."


Itstomuch--what other methods are you referring to when you state " There are other methods to insure your retirement portfolio"? Do you mean an annuity?
by antiqueman
Thu Jan 11, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: How many years of fixed income for Sequence of Return Risk
Replies: 26
Views: 2119

Re: How many years of fixed income for Sequence of Return Risk

I have a 45/55 allocation right now, with DW retiring 6 months ago and I plan on retiring this year. For me that equates to 26 years of expenses in fixed income. Wonder if I should just build a 30 year TIPS ladder and be done with it. I am the original poster. I thought about putting 30 years of fix...
by antiqueman
Thu Jan 11, 2018 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: How many years of fixed income for Sequence of Return Risk
Replies: 26
Views: 2119

Re: How many years of fixed income for Sequence of Return Risk

[quote=dwickenh post_id=3714641 time=1515693126 user_id=59826] Some people actually build their equity allocation around this question. 3-5 years seems to be the suggested fixed income to get past a "bear market". I lean to the safe side of that with 10 years of fixed income. The rest is in equities...
by antiqueman
Thu Jan 11, 2018 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: How many years of fixed income for Sequence of Return Risk
Replies: 26
Views: 2119

How many years of fixed income for Sequence of Return Risk

I am 63. DW is 60. I have low stock allocation . In essence I have 20%Iequities and 80 % in fixed income. Lots of TIPS. I realize I need to increase stock percentage to probably at least 30% to 35%. Will retire within next two years. I can fund living expenses with CDs, Tips, Short Term Bonds etc fo...
by antiqueman
Sun Jan 07, 2018 7:50 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth: How Long To Wait For Conversion?
Replies: 58
Views: 14949

Re: Backdoor Roth: How Long To Wait For Conversion?

Perhaps Alan S or others versed in this subject can answer the following questions: What is the look back period on a backdoor Roth? Would the IRS disallow it after 3, 5, 10 or 20 years? If it were disallowed what happens? Are the earnings taxes or can you transfer the earning and original ira back ...
by antiqueman
Sat Dec 30, 2017 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Make sure I am correct re Roth to Tradational IRA
Replies: 6
Views: 1021

Re: Make sure I am correct re Roth to Tradational IRA

Alan , thank you for replying. Based on the information you have provided me , he is what I plan to do after Jan.1 2018. (1) Recharacterize the initial 6500.00 Roth conversion to a traditional Ira. Then convert the traditional to a Roth. I will then pay taxes only on the amount of increase above the...
by antiqueman
Mon Dec 25, 2017 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Make sure I am correct re Roth to Tradational IRA
Replies: 6
Views: 1021

Re: Make sure I am correct re Roth to Tradational IRA

:Once the conversion is done in 2018, be aware that if you have a 401k or similar retirement account and roll it over to your IRA in 2018, that will cause your conversion to be almost entirely taxable, which is the same result if you have other TIRA accounts or balance in your TIRA in addition to th...
by antiqueman
Sun Dec 24, 2017 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Make sure I am correct re Roth to Tradational IRA
Replies: 6
Views: 1021

Make sure I am correct re Roth to Tradational IRA

My wife and I each made a $6500.00 contribution to our respective Roth IRA. At the time we made the contributions we did not think our income would be large enough to prevent us making the contributions. However our income for 2017 will be to large for Roth contribution. I read the Wiki and understa...
by antiqueman
Wed Dec 20, 2017 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: Use Roth Refund to Pay Future Conversion to Roth.
Replies: 2
Views: 313

Use Roth Refund to Pay Future Conversion to Roth.

My wife's and my income will be over the threshold to make any Roth contribution this year. We contributed $6500.00 each earlier this year when we didn't think our income would be to much to contribute. Now we have to withdraw the contributions, plus earnings. I am considering reclassifying the Roth...
by antiqueman
Tue Nov 28, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 156
Views: 18357

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

Vanguard does not state if the Value ETF will be small, mid-cap or large . So we don't know what its really offering in that fund.
by antiqueman
Sat Nov 25, 2017 6:55 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Managing Risk With Factors
Replies: 121
Views: 10916

Re: Larry Swedroe: Managing Risk With Factors

I don't understand the constant attack on those who wish to tilt to something other than the three fund portfolio. Its as if the three fund portfolio is the scared cow . There are post after post after post where people how bring up factors and are attacked. No wonder Larry left.
by antiqueman
Sun Oct 29, 2017 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: BCBS v NALC
Replies: 7
Views: 757

BCBS v NALC

It will be open season soon for federal retirees to select their health insurance for 2018. We have used BCBS for many years but we are considering changing to the National Association of Letter Carriers, health insurance. From what I can tell, the coverage is similar between BCBS and NALC , but NAL...
by antiqueman
Mon Oct 23, 2017 10:25 pm
Forum: Investing - Theory, News & General
Topic: Why not just annuitize and be done with it?
Replies: 52
Views: 17444

Re: Why not just annuitize and be done with it?

Recently checked the interest rate for an annuity through Met-Life through the TSP. ( Thrift Savings Plan)

The interest rate applied for the annuity if purchased in October 2017 is-- 2.125%.

With a rate that low I cant envision purchasing an annuity.
by antiqueman
Tue Oct 17, 2017 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Use G Fund Distribution for I Bonds
Replies: 2
Views: 363

Use G Fund Distribution for I Bonds

Please give me your thoughts on the following: My spouse is retired. Approximately 25% of our investable assets are in her TSP G fund. I am still working, In the past , with both of us working, we have been able to purchase the 20k yearly maximum from our cash flow. We may not be able to do that nex...
by antiqueman
Sun Aug 27, 2017 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Does a "true" liability matching portfolio require 30 years of fixed income
Replies: 12
Views: 1201

Re: Does a "true" liability matching portfolio require 30 years of fixed income

It seems that a CPI adjusted SPIA would achieve all of the LMP requirements with a lot less complexity I agree that a CPI adjusted SPIA is one potential answer. However I am not aware of many companies that issue CPI adjusted SPIAs. Then there is the cost of the annuity and the possibility of the co...
by antiqueman
Sun Aug 27, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Does a "true" liability matching portfolio require 30 years of fixed income
Replies: 12
Views: 1201

Re: Does a "true" liability matching portfolio require 30 years of fixed income

Yes. According to theory the correct answer is to buy a bond of matching duration. In theory a zero coupon bond is generally refereed to, not a TIP. Practice is different. There is a shortage of 30 year s, TIPS, and zero coupon bonds. The common answer is to actively manage a portfolio of long bonds...
by antiqueman
Sun Aug 27, 2017 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: Does a "true" liability matching portfolio require 30 years of fixed income
Replies: 12
Views: 1201

Does a "true" liability matching portfolio require 30 years of fixed income

For one to hold a "true" liability matching portfolio for 30 years, is the correct way to do that is to purchase a TIPS for each year for 30 years( I know some years don't have TIPS. For those years you would have to buy a combination of TIPS of other years to try to work through that problem) or ca...
by antiqueman
Mon Aug 21, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Alreday converted to Roth from Traditional IRA. Can I do it again ?
Replies: 5
Views: 507

Alreday converted to Roth from Traditional IRA. Can I do it again ?

I recently converted from a traditional IRA to a Roth Ira. The balance left in the traditional IRA is "0". ( Zero) I will not owe taxes on the conversion. I am now considering moving money from my 401k to a traditional IRA , but I may not convert any of it this year. I may withdraw some of it or con...
by antiqueman
Sun Aug 20, 2017 9:12 pm
Forum: Personal Consumer Issues
Topic: Safe car for wife and baby
Replies: 97
Views: 7438

Re: Safe car for wife and baby

Volvo S 80. S 90 or XC90.

My wife and I have had several over the pass 25 years. I always feel very safe in them.
by antiqueman
Sun Jul 16, 2017 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Likelihood 20/80 AA going Zero.
Replies: 8
Views: 1191

Re: Likelihood 20/80 AA going Zero.

[quote="Ged"]Why would you need any money in equities? 3% over 30 years will leave 10% at the end. It seems to me you have no need to take the risk of rebalancing. Risk is something you tolerate for a reason. If you don't need to take it, don't.[/ I am the OP. The reason we are considering some equi...
by antiqueman
Sun Jul 16, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Likelihood 20/80 AA going Zero.
Replies: 8
Views: 1191

Likelihood 20/80 AA going Zero.

My spouse has recently retired from Federal service. All of my spouse's assets in TSP have been in the G Fund. She and I have discussed moving the money to the TSP L Income fund which is 20% stock and 80% bond. The AA is broken down as follows: 12% C fund ( S and P), F Fund ( intermediate bond which...
by antiqueman
Fri Jul 14, 2017 10:17 am
Forum: Investing - Theory, News & General
Topic: DFA Retirement Income Strategies
Replies: 83
Views: 11008

Re: DFA Retirement Income Strategies

Thanks Bob.

Perhaps the 20 % stock will provide a better chance of the initial investment lasting more than 25 years.
by antiqueman
Thu Jul 13, 2017 10:34 pm
Forum: Investing - Theory, News & General
Topic: DFA Retirement Income Strategies
Replies: 83
Views: 11008

Re: DFA Retirement Income Strategies

Thanks Bob K for your response. I don't think I didn't asked the question well. Would the DFA fund be preferable to the bond ladder? If so, why? If not, why not? What are the main reasons a person would select the DFA fund over the ladder or vice-vera. I would not anticipate managing the ladder woul...
by antiqueman
Thu Jul 13, 2017 5:52 pm
Forum: Investing - Theory, News & General
Topic: DFA Retirement Income Strategies
Replies: 83
Views: 11008

Re: DFA Retirement Income Strategies

Bob,(or others). I calculated the yearly amounts that can be withdrawn using DFA income calculator. I used $250,00 as the invested amount. The estimated payout over 25 years for the "median" yearly withdrawl was $10,500.00. The question I have is why would the DFA Target retirement fund by better th...
by antiqueman
Thu Jun 22, 2017 8:28 pm
Forum: Investing - Theory, News & General
Topic: DFA Retirement Income Strategies
Replies: 83
Views: 11008

Re: DFA Retirement Income Strategies

[/quote] DFA's retirement income calculator in Table 1 assumes an asset allocation of 75% - 80% TIPS in retirement. This would leave one to suspect that the income is real, not nominal. Looking thru the key assumptions of DFA's retirement income calculator I see the following. [quote]Estimated futur...
by antiqueman
Wed Jun 21, 2017 7:58 pm
Forum: Investing - Theory, News & General
Topic: DFA Retirement Income Strategies
Replies: 83
Views: 11008

Re: DFA Retirement Income Strategies

I used the DFA Income Calculator Bobcat 2 linked to. I received three ranges of payouts. for "X" amount invested in the DFA retirement Income Fund, Assume that the withdrawn amounts for 2017 could be any of the following $10,000.00 a year, $8500 a year and $7500.00. The person decides he wants to wi...
by antiqueman
Thu Jun 08, 2017 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Items with mimimal risk of inflation increase
Replies: 17
Views: 1846

Items with mimimal risk of inflation increase

/am considering an immediate annuity. But before doing so , trying to think through possible inflation issues. Items I can think of that have no increase from present nominal cost , or none at all, are a fixed rate mortgage , some utilities such as water/sewage, fixed term life insurance policy. The...
by antiqueman
Tue Jun 06, 2017 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Excel Spreadsheet
Replies: 2
Views: 1148

Excel Spreadsheet

Would those of you who use excel to manage your stocks, bonds and other finances please provide how you utilize excel? I recall from my review of the forum that I recall that some of you calculate the dividends/interest you are projected to receive each year from your investments and even calculate ...
by antiqueman
Fri May 26, 2017 4:20 pm
Forum: Personal Consumer Issues
Topic: Septic Pumping - Did I get ripped off?
Replies: 50
Views: 5983

Re: Septic Pumping - Did I get ripped off?

If you got hurt ,I don't think its too bad considering where you live (NJ).