Search found 392 matches

by smitcat
Fri Aug 18, 2017 11:53 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 72
Views: 6019

Re: How I use I-ORP, and who shouldn't

Thanks for the comments. Please define "too aggressive." Does that mean not maximizing your income or estate, or just beyond your personal comfort level. I ask because the program notes caution that novices may not be comfortable with the recommended level of Roth conversions. Others may have a dif...
by smitcat
Fri Aug 18, 2017 11:32 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 72
Views: 6019

Re: How I use I-ORP, and who shouldn't

Please Note - IOPR also 'automatically' lowers SS income in future years and we are not able to adjust that now (wish we could). So currently when SS is forecasted to run down in funds the IORP adjust your SS income down from those years forward. Taxes often become the bigger variable once you have...
by smitcat
Fri Aug 18, 2017 9:50 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 72
Views: 6019

Re: How I use I-ORP, and who shouldn't

i-orp models total spending in retirement and convinced me that while delaying SS clearly gives you more money from SS, the effect on the total is actually very small, and certainly within the uncertainty limits of the modeling and unknowable future events." Depending upon your personal situation w...
by smitcat
Fri Aug 18, 2017 8:02 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 72
Views: 6019

Re: How I use I-ORP, and who shouldn't

. . . Another thing I like about I-ORP is that help is available. My first attempt gave me odd results, and I couldn't figure out what I was doing wrong. By following the instructions, you can get the inventor? (what exactly do you call a model owner?) to look at your work and give you feedback. On...
by smitcat
Fri Aug 18, 2017 6:27 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 72
Views: 6019

Re: How I use I-ORP, and who shouldn't

2) My estate is not over $5 million, so no estate tax consideration is needed. What if someone's estate is under $5M now, but i-ORP projects it will be over $5M at the end of life? On the first page of the full IORP output is a small chart that shows the estate totals. It will indicate the amount o...
by smitcat
Thu Aug 17, 2017 9:48 am
Forum: Personal Finance (Not Investing)
Topic: How does one determine their "number" and what exactly does it mean?
Replies: 116
Views: 10314

Re: How does one determine their "number" and what exactly does it mean?

"And what you spend each month on average is your gross pay minus true long term savings, with a few adjustments." Again - maybe that would be good or close enough for some but it would be far off in our case for the reasons I have posted. Gross pay and current expense do not help us determine a go...
by smitcat
Thu Aug 17, 2017 7:50 am
Forum: Personal Consumer Issues
Topic: Is it worth it? [demanding jobs vs time with family]
Replies: 139
Views: 6533

Re: Is it worth it?

"every minute we are not working, we spend with the kids for the most part" This is the key - yes it is worth it. With 60 hours towards work there is enough time left for a great experience if you follow that quote. We both worked hours in that range for a number of years and it worked out very well...
by smitcat
Thu Aug 17, 2017 5:57 am
Forum: Personal Finance (Not Investing)
Topic: How does one determine their "number" and what exactly does it mean?
Replies: 116
Views: 10314

Re: How does one determine their "number" and what exactly does it mean?

"And what you spend each month on average is your gross pay minus true long term savings, with a few adjustments." Again - maybe that would be good or close enough for some but it would be far off in our case for the reasons I have posted. Gross pay and current expense do not help us determine a goo...
by smitcat
Wed Aug 16, 2017 3:07 pm
Forum: Personal Consumer Issues
Topic: How useful is a home security system?
Replies: 67
Views: 4751

Re: How useful is a home security system?

I think they are very useful - if they include cameras. Today, cameras are very cost effective and usually come with DVR capabilities. I have 7 outside and 2 inside my house. Use them daily while working from home. I can view them anywhere with internet connection. If someone is going to break into...
by smitcat
Wed Aug 16, 2017 10:14 am
Forum: Personal Finance (Not Investing)
Topic: How does one determine their "number" and what exactly does it mean?
Replies: 116
Views: 10314

Re: Hitting "the number" -- when it is enough?

We always use retirement expenses for our number and while I am sure income will have relevance to that number for some it does not come close for us. Our budgeted retirement expenses are much different than our current situation for a lot of reasons so current income is not really relate to future...
by smitcat
Wed Aug 16, 2017 8:26 am
Forum: Personal Finance (Not Investing)
Topic: How does one determine their "number" and what exactly does it mean?
Replies: 116
Views: 10314

Re: Hitting "the number" -- when it is enough?

The most important factor is your expenses in retirement. You cannot calculate a "number" without knowing your expenses. Not your income, your expenses. Agreed on expenses. However expenses on 3 levels: a) The "bare minimum to have a low end, but still decent quality of life, and b) The within reas...
by smitcat
Thu Aug 10, 2017 8:44 am
Forum: Personal Consumer Issues
Topic: Toyota Camry Repair Priorities
Replies: 71
Views: 3951

Re: Toyota Camry Repair Priorities

Thanks for all your replies. With all the posts I regularly read here about cars going 200-300k miles, I'm always wondering what kind of maintenance and repairs they are doing during that time. The posts make it sound so simple. It's also not clear to me what is "routine" maintenance vs what are re...
by smitcat
Wed Aug 09, 2017 4:10 pm
Forum: Personal Consumer Issues
Topic: Buying a Vehicle the Old Fashioned Way
Replies: 57
Views: 5156

Re: Buying a Vehicle the Old Fashioned Way

My understanding is most of the lies dealers tell you are legal, and they know the difference. Examples are the car runs great, we did a thorough inspection, and my favorite if you have any problems bring it back and we'll take care of you (the omitted second half of the sentence being "for the sam...
by smitcat
Wed Aug 09, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Life at crossroads. What would you do ?
Replies: 198
Views: 16280

Re: Life at crossroads. What would you do ?

Guys, great suggestions. Keep them coming. Some thoughts * Driving for Uber - both my cars are 17 years old. Uber requires new cars. A new car is a big expense in my current situation. * Job fair - I haven't had much success in job fairs in the past. I used to go to them regularly earlier in my car...
by smitcat
Wed Aug 09, 2017 11:02 am
Forum: Personal Consumer Issues
Topic: Buying a Vehicle the Old Fashioned Way
Replies: 57
Views: 5156

Re: Buying a Vehicle the Old Fashioned Way

While I do not have any problems with negotiating for a purchase I do have problems with being purposely lied to and misled. That is fraud and against the law. If they purposely lied to you then you should file charges. I am sure you are kidding right? Absolutely serious. Google Auto Dealer Fraud o...
by smitcat
Wed Aug 09, 2017 8:17 am
Forum: Personal Consumer Issues
Topic: Buying a Vehicle the Old Fashioned Way
Replies: 57
Views: 5156

Re: Buying a Vehicle the Old Fashioned Way

$700 Scotch Guard interior, exterior paint and rust proofing protection. This stuff is BS. No way I would let a dealer do this to my brand new car. I thought they got rid of this crap years ago. Yes agreed - actually if you read the new manuals you will likely see that performing these 'add ons' ar...
by smitcat
Wed Aug 09, 2017 6:21 am
Forum: Personal Consumer Issues
Topic: Buying a Vehicle the Old Fashioned Way
Replies: 57
Views: 5156

Re: Buying a Vehicle the Old Fashioned Way

$700 Scotch Guard interior, exterior paint and rust proofing protection. This stuff is BS. No way I would let a dealer do this to my brand new car. I thought they got rid of this crap years ago. Yes agreed - actually if you read the new manuals you will likely see that performing these 'add ons' ar...
by smitcat
Tue Aug 08, 2017 4:56 pm
Forum: Personal Consumer Issues
Topic: Buying a Vehicle the Old Fashioned Way
Replies: 57
Views: 5156

Re: Buying a Vehicle the Old Fashioned Way

lthenderson wrote:
smitcat wrote:While I do not have any problems with negotiating for a purchase I do have problems with being purposely lied to and misled.
That is fraud and against the law. If they purposely lied to you then you should file charges.
I am sure you are kidding right?
by smitcat
Tue Aug 08, 2017 2:04 pm
Forum: Personal Consumer Issues
Topic: Buying a Vehicle the Old Fashioned Way
Replies: 57
Views: 5156

Re: Buying a Vehicle the Old Fashioned Way

Stealerships are not your friends no matter how well they sweet talk you or offer you "free oil changes and car washes." As I have said, I have a good friend who is a sales associate at one dealership and another who owns a dealership plus a few others acquaintances who work at them. They are good ...
by smitcat
Tue Aug 08, 2017 11:07 am
Forum: Investing - Help with Personal Investments
Topic: First Portfolio Review! 31 and 30 y.o. NYC married couple
Replies: 29
Views: 2269

Re: First Portfolio Review! 31 and 30 y.o. NYC married couple

Hello LITeacher, You are doing great try and reduce your self imposed stress. Question - What is the pension estimate for your job in various future years? We have been on LI for many years now and our friends that are teachers have retired pretty well mostly just on the pensions alone. I get nervo...
by smitcat
Tue Aug 08, 2017 9:06 am
Forum: Investing - Help with Personal Investments
Topic: First Portfolio Review! 31 and 30 y.o. NYC married couple
Replies: 29
Views: 2269

Re: First Portfolio Review! 31 and 30 y.o. NYC married couple

Hello LITeacher,

You are doing great try and reduce your self imposed stress.
Question - What is the pension estimate for your job in various future years?
We have been on LI for many years now and our friends that are teachers have retired pretty well mostly just on the pensions alone.
by smitcat
Mon Aug 07, 2017 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Help with understanding - pay taxes now or in future
Replies: 59
Views: 3189

Re: Help with understanding - pay taxes now or in future

Few wise BH have said that if you end up with problem of paying high taxes in retirement, you could have retired early. Your extra years of working helped uncle sam more than it helped you. But few of BH have the guts to voluntarily get off the working wheel. Many of the replies state that their "n...
by smitcat
Mon Aug 07, 2017 9:16 am
Forum: Personal Finance (Not Investing)
Topic: How much do kids cost in a high COLA?
Replies: 57
Views: 3750

Re: How much do kids cost in a high COLA?

You have to wonder where all that money goes to... I know it's not the workers... The problem is the very low student to teacher ratios required for young children. Our daycare has 1 worker per 4 babies. If you pay the worker $25k/yr (they work 12 hour days- it's more than 40 hours a week), just th...
by smitcat
Mon Aug 07, 2017 6:30 am
Forum: Personal Finance (Not Investing)
Topic: Mom made a mistake? Annuities
Replies: 51
Views: 4847

Re: Mom made a mistake? Annuities

Our current GLWB VAs have doubled in Acct Value in <8 yrs (~9%+ cagr). Can you cash out that Acct Value? If not, then it's not a true representation of how well your VA has done. This is how insurance companies trick naïve investors. If you can cash it out, then you have a good annuity. You bought ...
by smitcat
Fri Jul 28, 2017 4:47 pm
Forum: Personal Consumer Issues
Topic: TSA Pre-check for free
Replies: 75
Views: 5547

Re: TSA Pre-check for free

We fly on several different airlines, depending on the destination. There are several credit cards that include free Global Entry (they refund your fee), which also includes Pre Check. Depending on how often you fly out of the US, it's a much better deal to go with Global Entry for a few buck more ...
by smitcat
Fri Jul 28, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate: gross or net?
Replies: 56
Views: 3077

Re: Savings rate: gross or net?

It should always be gross income. I use the formula Income = Savings + Expenses. I then break the %s down into the following categories in my budget: Savings- 49% Taxes- 18% Rent+Util- 13% Insurance- 3% Groceries- 3% Gas (Auto)- 1% Restaurants/Shopping- 6% Hobbies- 5% Vacation- 2% This confuses me....
by smitcat
Fri Jul 28, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate: gross or net?
Replies: 56
Views: 3077

Re: Savings rate: gross or net?

When we first started playing with these it made a lot of sense to work with ratios of what you were seeing each week. But over time it became very apparent that working with a ratio of what you currently make vs what your current expenses were is always misleading - sometime a while lot. As JackFFR...
by smitcat
Fri Jul 28, 2017 6:11 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate: gross or net?
Replies: 56
Views: 3077

Re: Savings rate: gross or net?

You are far better figuring this out yourself. Decide what you will need to retire and work backwards from there. If you want someone else to decide it for you, I say "net" and "Don't listen to Tony Robbins." JT I could not agree more - any other 'comparisons' with others are ju...
by smitcat
Tue Jul 25, 2017 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

Are you married filing single or jointly? Married filing jointly with only one income this year but my spouse will return to work mid next year, so I'm anticipating a bigger tax bill. When looking at tax tables for MFJ at say $75K and a reasonable amount of deductions the effective rate is very low...
by smitcat
Tue Jul 25, 2017 7:58 am
Forum: Personal Consumer Issues
Topic: How much electricity are you using and how expensive it is?
Replies: 93
Views: 4391

Re: How much electricity are you using and how expensive it is?

I don't disagree w any of this but a 1989 fridge can burn 1500 to 2000 kwhr pa. A modern one 550. I'll second this concern. My mother had a 1960s 'frig running in her guest house (seldom used). The elec charge for that house was 3 times higher than for her main house that she lived in. When she unp...
by smitcat
Tue Jul 25, 2017 5:59 am
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

The latter. I'm taking into account only federal, state, and local income tax, as well as Medicare and SS taxes. OK - that makes sense , so your tax bill is no where near 1/3rd gross. What am I missing here ? Incendiary said his taxes effectively add up to 34% of gross income. It's really not that ...
by smitcat
Mon Jul 24, 2017 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: 4-6% a year
Replies: 28
Views: 5772

Re: 4-6% a year

Are they experienced landlords? Do they know the costs and risks of owning rental property. Here is a list of some of them: 1. Taxes 2. Insurance 3. Legal fees 4. Accounting fees 5. Maintenance and repairs 6. Loss of income due to vacancy periods 7. Tenants who damage the property 8. Tenants who do...
by smitcat
Mon Jul 24, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

incendiary - are you saying you paid 34% or your gross income in taxes or that you reached a combined top marginal tax rate of 34%? Otherwise said - if you gross income was $300K you actually paid $102K in taxes? The latter. I'm taking into account only federal, state, and local income tax, as well...
by smitcat
Mon Jul 24, 2017 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

When I figure in SS , Medicare, Fed , and State I still do not see a way to get to 33% unless that couple is way above $500K per year. I would guess a tax rate of near 12-15% is typical. 12-15% would be very low. The majority of households do not make even $100K. m "The overall median has cont...
by smitcat
Mon Jul 24, 2017 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

Folks, Let me propose a different saving rate. Instead of based on income, it should be based on current annual expense. So, instead of 50% net saving rate of income, it should be 100% current annual expense. KlangFool KalngFool - I really like that % or ratio. I actually use a % or ratio of what a...
by smitcat
Mon Jul 24, 2017 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

Are you married filing single or jointly? Married filing jointly with only one income this year but my spouse will return to work mid next year, so I'm anticipating a bigger tax bill. When looking at tax tables for MFJ at say $75K and a reasonable amount of deductions the effective rate is very low...
by smitcat
Mon Jul 24, 2017 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

incendiary - are you saying you paid 34% or your gross income in taxes or that you reached a combined top marginal tax rate of 34%? Otherwise said - if you gross income was $300K you actually paid $102K in taxes? The latter. I'm taking into account only federal, state, and local income tax, as well...
by smitcat
Mon Jul 24, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

A few thoughts - I do not believe that a typical US household will reach the 25% tax bracket. Hardly any "typical US household" here on Bogleheads anyways We actually pay twice the typical SS and Medicare rates because we own our business and pay both sides. After 401K deductions ($48K), ...
by smitcat
Mon Jul 24, 2017 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

OK - I thought it was for typical couples or households. When I figure in SS , Medicare, Fed , and State I still do not see a way to get to 33% unless that couple is way above $500K per year. I would guess a tax rate of near 12-15% is typical. You made me curious. Looks like I paid about 16% last y...
by smitcat
Mon Jul 24, 2017 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

OP, It is very simple but hard. 1) Save 1/3, spend 1/3, and pay 1/3 in tax. 2) Use "Pay Yourself First" to auto-deduct your pay check to all the saving and investment account. You live on 1/3 of your gross income. You cannot spend the money if you do not see it from your pay check at all....
by smitcat
Mon Jul 24, 2017 10:28 am
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

OP, It is very simple but hard. 1) Save 1/3, spend 1/3, and pay 1/3 in tax. 2) Use "Pay Yourself First" to auto-deduct your pay check to all the saving and investment account. You live on 1/3 of your gross income. You cannot spend the money if you do not see it from your pay check at all....
by smitcat
Mon Jul 24, 2017 10:20 am
Forum: Personal Consumer Issues
Topic: How much electricity are you using and how expensive it is?
Replies: 93
Views: 4391

Re: How much electricity are you using and how expensive it is?

I don't disagree w any of this but a 1989 fridge can burn 1500 to 2000 kwhr pa. A modern one 550. I'll second this concern. My mother had a 1960s 'frig running in her guest house (seldom used). The elec charge for that house was 3 times higher than for her main house that she lived in. When she unp...
by smitcat
Mon Jul 24, 2017 10:08 am
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

OP, It is very simple but hard. 1) Save 1/3, spend 1/3, and pay 1/3 in tax. 2) Use "Pay Yourself First" to auto-deduct your pay check to all the saving and investment account. You live on 1/3 of your gross income. You cannot spend the money if you do not see it from your pay check at all....
by smitcat
Mon Jul 24, 2017 6:47 am
Forum: Personal Finance (Not Investing)
Topic: Investing in an AirBNB unit? ROI?
Replies: 32
Views: 3043

Re: Investing in an AirBNB unit? ROI?

We operate an airbnb out of our house. We have an old home with a back room and separate entrace that can be kept shut off from the rest of the house. It's a bedroom with a bathroom, no kitchen. My wife manges it and cleans the room. We book probably 80% of the nights or more. Brings in about 1100-...
by smitcat
Mon Jul 24, 2017 6:27 am
Forum: Personal Consumer Issues
Topic: How much electricity are you using and how expensive it is?
Replies: 93
Views: 4391

Re: How much electricity are you using and how expensive it is?

I am currently paying about $400 a month for electricity in Pennsylvania. No natural gas is available at my location so heating/cooling is included. I am currently using about 3300 kWh per month which is three times the national average. Average price is $0.106 per kwh. Our furnace/ac system is bra...
by smitcat
Sat Jul 22, 2017 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone set portfolio goals and rewards?
Replies: 35
Views: 2256

Re: Does anyone set portfolio goals and rewards?

"To each his own. I personally think I would tie my goals to reflect market movements for at least two reasons. 1). My main goal is to reach FI and at some point retirement so I just couldn't reward myself with an unnecessary house, trip, or toy when the currents of the market have pulled me fu...
by smitcat
Sat Jul 22, 2017 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11350

Re: What's your personal savings rate?

We currently save a bot more than 2 years of full expenses required for our retirement goals. That would also be about 4 times our basic required expenses for our retirement goals. We have been at this rate now for 4 years and before that we were a bit lower. The only thing that really matters in th...
by smitcat
Sat Jul 22, 2017 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone set portfolio goals and rewards?
Replies: 35
Views: 2256

Re: Does anyone set portfolio goals and rewards?

I like bobcat2's funded ratio https://www.bogleheads.org/forum/viewtopic.php?t=219878 as a metric. I was thinking as long as one was at least at target or maybe 1.x target, some set rewards may be appropriate. Another option would be some combination of metrics, such as meeting the funding ratio an...
by smitcat
Thu Jul 20, 2017 4:29 pm
Forum: Investing - Theory, News & General
Topic: Delay Social Security to age 70 and Spend more money at 62
Replies: 203
Views: 31566

Re: Delay Social Security to age 70 and Spend more money at 62

I know we are not supposed to speculate on future legislative changes but I cannot help but see an elephant in this thread. 1) About 59 million people collect Social Security benefits each month, and they account for about one in six people in the United States 2) There are 76.4 million baby boomer...
by smitcat
Thu Jul 20, 2017 1:36 pm
Forum: Investing - Theory, News & General
Topic: Delay Social Security to age 70 and Spend more money at 62
Replies: 203
Views: 31566

Re: Delay Social Security to age 70 and Spend more money at 62

I've read through this entire thread, and I don't think this was covered (sorry if it was and I missed it). How do you account for a couple that has similar salaries and work history, and thus very similar SS benefits. For simplicity, let's say each person would receive $2,000/month SS benefit at a...