Search found 1174 matches

by trueblueky
Wed Dec 06, 2017 3:11 pm
Forum: Investing - Theory, News & General
Topic: "Financial Shock" wealth
Replies: 33
Views: 6080

"Financial Shock" wealth

https://shift.newco.co/your-financial-shock-wealth-4845e6dc1d2f?source=email-a51b5e565b6-1512477562420-digest.reader------0-38&gi=23e661ec2332 This piece uses ability to withstand a financial shock as the measure of wealth. That is, if you can easily handle a $1,000 emergency (most Americans can't),...
by trueblueky
Sun Nov 19, 2017 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Do you include the sale of your home as part of your retirement planning?
Replies: 91
Views: 5048

Re: Do you include the sale of your home as part of your retirement planning?

No I do not. However, I do account on the expense side what projected upgrades/maintenance may be required over the years that I remain here. If I had to plan to use my home as a source for retirement income, I would further refine my plan to remove it from the equation. Additionally, I've moved en...
by trueblueky
Thu Nov 16, 2017 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Which Bonds for Taxable Account?
Replies: 10
Views: 1134

Re: Which Bonds for Taxable Account?

GottaRun wrote:
Wed Nov 15, 2017 1:18 pm
39.6% federal tax bracket
Plus NJ. Top bracket 8.97%.

Have our considered putting part in a NJ tax-exempt fund?
by trueblueky
Tue Nov 14, 2017 10:26 am
Forum: Investing - Theory, News & General
Topic: Passive investing is a 'chaotic system' that could be dangerous?
Replies: 20
Views: 1842

Re: Passive investing is a 'chaotic system' that could be dangerous?

I'm fairly new to index investing with bogleheads advice. Wondering what your thoughts on this article are... https://www.cnbc.com/2017/11/14/robert-shiller-passive-investing-is-a-dangerous-chaotic-system.html Schiller is a smart guy, no doubt about it. But I don't get the issue. If too many people...
by trueblueky
Fri Nov 10, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 159
Views: 10876

Re: Federal Retiree Health Care with/Medicare

The NARFE magazine out yesterday contains an article by Tammy Flanagan on this subject.

She is the federal retirement guru. For any fed approaching retirement, I recommend signing up for her free weekly column in Government Executive.
by trueblueky
Thu Nov 09, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 159
Views: 10876

Re: Federal Retiree Health Care with/Medicare

I have to make this decision in a little over a year. Does anyone have any insight into best options when one person on the insurance is Medicare-eligible and one (or more) on the insurance is not? I'm on Medicare. For us, best was to "suck it up" and stay with our BCBS family plan. When DW becomes...
by trueblueky
Thu Nov 09, 2017 4:12 pm
Forum: Investing - Theory, News & General
Topic: The fear of retirement, black swan, and math to dissuade the fear.
Replies: 136
Views: 13125

Re: The fear of retirement, black swan, and math to dissuade the fear.

Don't black swans call into categories:
+ Hyperinflation
+ Sustained deflation
+ The mother of all depressions
+ Any one of the Four Horsemen
by trueblueky
Thu Nov 09, 2017 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 159
Views: 10876

Re: Federal Retiree Health Care with/Medicare

I have to make this decision in a little over a year. Does anyone have any insight into best options when one person on the insurance is Medicare-eligible and one (or more) on the insurance is not? I'm on Medicare. For us, best was to "suck it up" and stay with our BCBS family plan. When DW becomes...
by trueblueky
Sat Nov 04, 2017 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Does Retirement Make You Lazier?
Replies: 87
Views: 7737

Re: Does Retirement Make You Lazier?

I don't want to volunteer... I prefer to send charities money. I think you answered your own question. I stay pretty busy doing volunteer work. I never liked doing stuff around the house and I still don't. +1 When we were in the north working, for months on end I went to work in the dark and came h...
by trueblueky
Sun Oct 29, 2017 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Start TSP disbursements and delay social security -- or the other way around?
Replies: 50
Views: 3897

Re: Start TSP disbursements and delay social security -- or the other way around?

The concept involved in spending your own money first, from your IRA/401K/TSP, etc to reduce the balance and thus avoid future taxes seems inherently flawed. It's good for the government, they get your taxes sooner rather than later, but bad for your surviving spouse and heirs. It leans on the prem...
by trueblueky
Wed Oct 25, 2017 9:28 pm
Forum: Investing - Theory, News & General
Topic: Emotional impact of spending down assets?
Replies: 100
Views: 10146

Re: Emotional impact of spending down assets?

We are in sorta that position. I just don't know, even with LTC and good health insurance on both of us, how much to hang on to just in case something in twenty years. Even with a COLA'd pension that covers current needs, plus SS later, what if? How much needs to be set aside? Is the goal to maximiz...
by trueblueky
Mon Oct 23, 2017 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 159
Views: 10876

Re: Federal Retiree Health Care with/Medicare

Retired fed here. Both age 68. We have part A and B along with BCBS. We have significant medical expenses and expensive medications due to my wife's ongoing medical issues. Her medical problems nearly bankrupted us. It the reason I went back to work for the federal government. You can't appreciate ...
by trueblueky
Thu Oct 19, 2017 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 127
Views: 16326

Re: TSP to Vanguard?

Thanks for the feedback. Maybe I should adjust my thinking. I had envisioned G as my primary FI investment in retirement, but perhaps I should consider using F instead. retiredjg - it wasn't easy to find but I think (at least in 2016) TSP had ~500 billion in assets and ~44% of that total was in G f...
by trueblueky
Thu Oct 12, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation question for my parents
Replies: 16
Views: 917

Re: Asset allocation question for my parents

Hello all. I'm glad I found this forum to hopefully help each other in investing :) So my dad is a relatively wealthy person, but he isn't a proper investor. He asked me if I would like to manage his money for him. I'm no investor myself and so I've spent a few days reading about investing. From wh...
by trueblueky
Tue Oct 03, 2017 11:05 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 127
Views: 16326

Re: TSP to Vanguard?

As someone who likes to keep my options open, I cannot imagine why you would close your TSP. It's not all or nothing - you don't have to keep all your money in the TSP. In spite of the various disadvantages of the TSP, there are many advantages including: ERISA plans could have better asset protect...
by trueblueky
Fri Sep 29, 2017 6:41 pm
Forum: Investing - Help with Personal Investments
Topic: Simplify my Portfolio
Replies: 4
Views: 638

Re: Simplify my Portfolio

Duckie has done well. I would simplify by having all G in the TSP until it brought your bonds above 15%.
by trueblueky
Mon Sep 25, 2017 3:51 pm
Forum: Investing - Theory, News & General
Topic: Retirees, what is your marginal tax rate?
Replies: 102
Views: 10767

Re: Retirees, what is your marginal tax rate?

We're in the 39.5% bracket, plus 11% or so California tax. Will be in this bracket indefinitely. Same bracket as when I retired. Have looked at all the ways to finesse this lower; not gonna happen. This largely from accumulating a large 401k, with its attendant rmd's. So how large a 401k at age 70 ...
by trueblueky
Sun Sep 24, 2017 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Moving to TSP + Pension - How to adapt AA to changes?
Replies: 24
Views: 2157

Re: Moving to TSP + Pension - How to adapt AA to changes?

is it standard to roll over into the TSP, or would my lower expense ratios warrant me keeping those funds there? I'd consider leaving your 457b where it is, you should be eligible to draw from the traditional balance penalty-free as soon as you separate service from your current employer. With your...
by trueblueky
Fri Sep 22, 2017 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Wills, Trusts, estate planning, POA's, Advanced Directives... what first??
Replies: 6
Views: 624

Re: Wills, Trusts, estate planning, POA's, Advanced Directives... what first??

It is usually a package price. But the hardest part is making some decisions: Who do you want as executor/trustee? What if they pre-decease you? Then who do you want? Important now is to get a basic will and the medical documents in place. What if a future child becomes disabled and needs more of y...
by trueblueky
Fri Sep 22, 2017 8:08 pm
Forum: Investing - Theory, News & General
Topic: Retirees, what is your marginal tax rate?
Replies: 102
Views: 10767

Re: Retirees, what is your marginal tax rate?

Retired. Married. Federal rate 15%, no state.
Federal will be 25% when RMD begins or either dies.
Doing Roth conversions to the top of 15% bracket each year until then.
RMD begins before DW's Social Security, so SS will be taxed at 25(.85) = 21.25% but the overall marginal will still be 25%.
by trueblueky
Thu Sep 21, 2017 12:40 am
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 102
Views: 4950

Re: Online Bill Pay Security: Push or Pull?

I prefer push from the bank. I sign up for e-bills and have some of them paid automatically by the bank. But I avoid giving vendors authorization to pull money from my bank account. In a few cases the vendors dont give me a convenient choice (UCSD for example). In the UCSD case I unlick the box whe...
by trueblueky
Wed Sep 20, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 102
Views: 4950

Re: Online Bill Pay Security: Push or Pull?

I autopay recurring bills from the credit union website. I have the telephone and electricity bills set to an amount greater than it normally is, because both fluctuate. I change them in the credit union site before they're paid each month, but am comforted that even if the bill doesn't come or I'm ...
by trueblueky
Sat Sep 16, 2017 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA has 16 Corp Bonds in it
Replies: 16
Views: 1176

Re: Inherited IRA has 16 Corp Bonds in it

I don't think you should care about the coupon rates because when you sell the bonds will be marked to market and sold for above par. You should only care that you get a fair price when you sell and not have to pay a big commission. +1 There is really nothing special about the bonds since you could...
by trueblueky
Sat Sep 16, 2017 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Help With Asset Allocation - 7 years to retirement
Replies: 10
Views: 1508

Re: Help With Asset Allocation - 7 years to retirement

My apologies for not responding sooner. Thank you everyone for your very helpful advice. I really like the idea of just smoothly decreasing the allocation over the 7 years since I can adjust the glide path as needed, depending on whether I might continue working. Thank you to everyone for giving me...
by trueblueky
Thu Sep 07, 2017 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Critique this TSP allocation
Replies: 28
Views: 2144

Re: Critique this TSP allocation

I hold G, but no F. Whenever rates increase, the F's value will go down per its duration, while G will not. Both F and G will begin to accrue higher interest. Note that TSP funds do not distribute earnings; everything is total return. Outside TSP, I have CDs (hard to pass on 3% for five months at Na...
by trueblueky
Wed Sep 06, 2017 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Critique this TSP allocation
Replies: 28
Views: 2144

Re: Critique this TSP allocation

It's hard to critique because you're not really articulating a reason why you'd have no F fund or why you think the C fund is sub-par. In fact, both are excellent, low-cost funds that do exactly what they promise to do. Notably, the F fund way outperforms the G fund some years, and the G fund outpe...
by trueblueky
Wed Sep 06, 2017 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: Count unvested contributions when determining asset allocation?
Replies: 14
Views: 695

Re: Count unvested contributions when determining asset allocation?

I see, perfect. So DON'T count unvested contributions in your asset allocation is the general advice. Then I don't need to make any changes to my big retirement spreadsheet (phew!). Still not sure why they let me pick how to invest their money though... the "money market until vested" approach that...
by trueblueky
Mon Sep 04, 2017 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Increase in pay plus new W2 income, what to do about taxes?
Replies: 3
Views: 504

Re: Increase in pay plus new W2 income, what to do about taxes?

My standard advice is for the higher wage spouse, which would include taxable bonus, to use married with appropriate exemptions. The lower wage individual then uses the marginal rate (33% for you?) for withholding as the exemptions have already been used. Remember to account for non-salary income so...
by trueblueky
Mon Sep 04, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Christine Benz: "75 Must-Know Statistics About Long-Term Care"
Replies: 24
Views: 3950

Re: Christine Benz: "75 Must-Know Statistics About Long-Term Care"

Well, according to those stats on college cost, 36% of students at Vanderbilt are paying full price. Less than half, but hardly "nobody". On LTC, we budget that as part of our retirement planning. Since we can afford the cost without insurance it does not seem worth it to convert fungible investmen...
by trueblueky
Sun Sep 03, 2017 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Christine Benz: "75 Must-Know Statistics About Long-Term Care"
Replies: 24
Views: 3950

Re: Christine Benz: "75 Must-Know Statistics About Long-Term Care"

Where did the 200% increase in prices in education go? Book publishers? Professors? Dorm rooms? Boarding at schools shouldn't have risen 200% when food prices go up only 50%, right? Part of the increase in higher education prices is illusory. Many colleges have sticker prices much higher than what ...
by trueblueky
Sat Sep 02, 2017 2:49 pm
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4610

Re: Do you know your bond portfolio's REAL 12 month total return?

Bonds aren't cash investments. Unlike bank CDs and savings accounts, bonds have a fluctuating value. Sometimes, this value goes up, other times it goes down. A non-defaulting nominal bond is guaranteed to mature at par. But, its value fluctuates before maturity. These fluctuations are usually bigge...
by trueblueky
Fri Sep 01, 2017 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Christine Benz: "75 Must-Know Statistics About Long-Term Care"
Replies: 24
Views: 3950

Benz: 75 Must Know Statistics about LTC

http://news.morningstar.com/articlenet/article.aspx?id=823957 The numbers in her article are useful for planning. For instance, I have about 50% chance of needing LTC, but only 22% chance that it will last two years and only 2% chance it will last more than five years. DW's chances are higher overal...
by trueblueky
Fri Sep 01, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4610

Re: Do you know your bond portfolio's REAL 12 month total return?

G Fund was $15.4228 at the end of the month. August 31, 2016, it was $15.0924. That's 2.19% increase. 2.19 - 1.91 = 0.28% Real. Handily beating TBM with no risk. It made a little less than a good 5-year CD, which is the comparison I use. F Fund went from $17.9811 to $18.1218 during the same period, ...
by trueblueky
Fri Sep 01, 2017 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Stop income tax withholding
Replies: 15
Views: 1646

Re: Stop income tax withholding

If the payroll system is the least bit modern, just give them a percentage to withhold.

I advise that for working spouses. First spouse does W4 exemptions and all depending on circumstances; second just withholds 15%, for instance.
by trueblueky
Thu Aug 31, 2017 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation account placement help
Replies: 7
Views: 613

Re: Asset allocation account placement help

Recommend G instead of F in your TSP. G Fund has never had a bad day; you get long-term interest rates with short-term liquidity; guaranteed by US government.
by trueblueky
Tue Aug 29, 2017 3:47 pm
Forum: Investing - Theory, News & General
Topic: white paper: Asset Allocation in a Low Yield Environment
Replies: 7
Views: 2025

Re: white paper: Asset Allocation in a Low Yield Environment

Thanks for sharing this and I found the explanation for why bond yields can go negative (holding paper money isn't really practical) pretty helpful in helping me make sense of something that was a complete mystery to me. I am also in the camp of expecting basically zero real returns out of my CDs/b...
by trueblueky
Sun Aug 27, 2017 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: LTCi or RM
Replies: 18
Views: 952

Re: LTCi or RM

A reverse mortgage is a loan that must be repaid when the last surviving homeowner permanently moves out. It's easy to imagine a situation where one spouse in is LTC, and then something happens that causes the other spouse to move out (death, second spouse also enters LTC). I don't think RM is the s...
by trueblueky
Sun Aug 27, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Military Retiree Question
Replies: 8
Views: 907

Re: Military Retiree Question

Let the money sit in TSP. Low ER. G Fund.

Your other investments can cover any gaps you perceive.
by trueblueky
Sat Aug 26, 2017 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Taxes and safe swr
Replies: 41
Views: 2276

Re: Taxes and safe swr

In my case, with bulk of assets in tax deferred accounts, planning has been in terms of gross taxable income. Thus $100k of retirement income is pretty much the same as $100k of employment W-2 income. Not quite true since no FICA deducted from retirement income and no state tax on SS income. So for...
by trueblueky
Thu Aug 24, 2017 7:26 pm
Forum: Investing - Theory, News & General
Topic: Tilt away from one's home country slightly
Replies: 18
Views: 2004

Re: Tilt away from one's home country slightly

How integrated is your home market into the world equity market? If it is highly integrated then you are not going to much of a benefit. Tilting to or from a market implies a low correlation between markets. FYI, this is why I hold international at market weight - DM is well integrated into US. One...
by trueblueky
Thu Aug 24, 2017 7:16 pm
Forum: Investing - Theory, News & General
Topic: Mike Piper and CDs
Replies: 54
Views: 6454

Re: Wade Pfau and CDs

For any kind of significant holding, you really have to look at brokered CDs. It would be a lot of work to spread out a significant bond holding around various banks to stay under the FDIC limit. Self, spouse, joint self and spouse, self POD spouse, spouse POD self gets you to $1,250,000 at a singl...
by trueblueky
Wed Aug 23, 2017 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: What do you do with RMD money you don't need?
Replies: 51
Views: 4626

Re: What do you do with RMD money you don't need?

Taking a RMD doesn't mean you have to spend the money. To take a RMD from Vanguard VTSAX or VBTLX in a traditional IRA, you merely transfer it to the same fund in a taxable account. Viola! Problem solved. Well, sort of, aside from the 28% + 5% income taxes that need to be paid in my case. And since...
by trueblueky
Wed Aug 23, 2017 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on emergency fund/cash options
Replies: 13
Views: 1241

Re: Opinions on emergency fund/cash options

All, This board has a million threads on cash/emergency fund options, but I thought I'd see if anyone wants to chime in on my situation. My wife and I have the standard 6 months-living-expenses e-fund (which could be stretched to perhaps 8 months if needed by cutting back on non-necessities), and I...
by trueblueky
Mon Aug 21, 2017 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Should my grandfather liquidate?
Replies: 22
Views: 1860

Re: Should my grandfather liquidate?

So, on the IRA point, his wife recently passed away (my grandmother). He is being asked to assume or inherit her IRA. Given that he doesn't need any IRA funds now and does not have much taxable income each year to speak of (roughly $12,000), which should he do? Thanks again! If he assumes the IRA, ...
by trueblueky
Sun Aug 20, 2017 7:20 pm
Forum: Investing - Theory, News & General
Topic: Boston Globe: Smart Investors May be Killing Capitalism
Replies: 44
Views: 4591

Re: Boston Globe: Smart Investors May be Killing Capitalism

Don't the owners of Aetna and Humana (those same mutual funds and pension funds) have interests that would result in lowering the profit margins of CVS and Walgreens? Not so much relative to one another. What does Aetna or Humana care if CVS or Walgreens wins? The insurance companies want to drive ...
by trueblueky
Sun Aug 20, 2017 6:29 pm
Forum: Investing - Theory, News & General
Topic: Boston Globe: Smart Investors May be Killing Capitalism
Replies: 44
Views: 4591

Re: Boston Globe: Smart Investors May be Killing Capitalism

The owners of CVS and Walgreens are the mutual funds and pension funds which tend to hold both. The owners have interests in high margins for both CVS and Walgreens. The ownership doesn't want a highly competitive environment between them. Strong competition would damage their collective earnings. ...
by trueblueky
Mon Aug 14, 2017 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule A Tax Modeling for 2017 >age65
Replies: 9
Views: 1107

Re: Schedule A Tax Modeling for 2017 >age65

RudyS wrote:
Mon Aug 14, 2017 12:43 pm
Increase the projected medical expenses, so that the allowed deduction reflects 10% rather than 7.5%. Should be straightforward.
The other way around unfortunately. In 2016, you could include medical expenses in itemizing if they were more than 7.5% of AGI (assuming age 65). In 2017, it's 10%.
by trueblueky
Sun Aug 13, 2017 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Allocation Strategy for the AGRESSIVE Investor
Replies: 36
Views: 2835

Re: TSP Allocation Strategy for the AGRESSIVE Investor

what would be pros and cons of just putting everything into a L fund Pro: * simple way to hold C, S and I stock index funds and C and F bond funds. * automatically becomes less aggressive as one ages * no need to rebalance. Ever. * new contributions can be at the same AA as the existing holding. * ...