Search found 2588 matches

by michaeljc70
Fri Apr 20, 2018 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 73
Views: 5252

Re: Help me explain why pre-tax investing can help when retiring in same bracket

A lot of this is speculation over 1) future tax rates/policy and 2) knowing your income far into the future during retirement. Personally, I've mostly taken a bird in the hand approach and contributed to tax deferred accounts to save/invest more money now. I plan to do conversions in early retiremen...
by michaeljc70
Fri Apr 20, 2018 11:20 am
Forum: Investing - Theory, News & General
Topic: We crush stock indexes, Yale claims
Replies: 98
Views: 10728

Re: We crush stock indexes, Yale claims

"For the 20-year period ending June 30, Yale's endowment earned a 12.1 percent annualized return, beating its benchmark Wilshire 5000 stock index, which gained 7.5 percent."

What? How can a fund with 5% US stocks have that as it's benchmark? It is really comparing apples and orangutans.
by michaeljc70
Wed Apr 18, 2018 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 38
Views: 3675

Re: Can I *not* claim all the state tax in my itemized deduction?

Will this be moot for you next year with the increased standard deduction? Just don't over withhold on your state taxes and you won't have this issue. It seems people (and the OP) are making this more complicated than it needs to be. Most states follow the Federal safe harbor rules to avoid a penalty.
by michaeljc70
Wed Apr 18, 2018 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7789

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

A few things that come to mind after reading the last few posts: -There could be black swan type events that haven't happened before. Many other unforeseen things can happen on a micro or macro level. We could get hit by a bus or tsunami or meteor tomorrow. I prefer to focus on the positive and the ...
by michaeljc70
Wed Apr 18, 2018 4:40 pm
Forum: Personal Consumer Issues
Topic: Association Property tax appeal - opt in
Replies: 8
Views: 539

Re: Association Property tax appeal - opt in

My question is, since similar properties are supposed to be assessed the same, and most of the units here are identical, if I don't do anything, will my assessed value actually rise higher than my neighbors? These things are local. But, where I am, the answer would be, yes. In other words, let's sa...
by michaeljc70
Wed Apr 18, 2018 3:22 pm
Forum: Personal Consumer Issues
Topic: Association Property tax appeal - opt in
Replies: 8
Views: 539

Re: Association Property tax appeal - opt in

I have appealed on my own before. It is a simple process. I didn't really get anywhere. That was on another property though. My friend that worked for the county and was an attorney and then a judge told me that if you don't hire an attorney they know (politicians firm, worked for the county previo...
by michaeljc70
Wed Apr 18, 2018 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7789

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

I wonder that, given the historical return of the market and you do it correctly, is it possible to assume that you can withdraw from this portfolio permanently, I mean: having the same portfolio balance or even more after 50 years? I don't have specific data on that in front of me. I have read tha...
by michaeljc70
Wed Apr 18, 2018 1:29 pm
Forum: Personal Consumer Issues
Topic: Association Property tax appeal - opt in
Replies: 8
Views: 539

Re: Association Property tax appeal - opt in

My question is, since similar properties are supposed to be assessed the same, and most of the units here are identical, if I don't do anything, will my assessed value actually rise? I looked at a few of my neighbors and we had the same assessed as me, but I don't know if they hired the attorney or...
by michaeljc70
Wed Apr 18, 2018 1:07 pm
Forum: Personal Consumer Issues
Topic: Association Property tax appeal - opt in
Replies: 8
Views: 539

Association Property tax appeal - opt in

Our townhome homeowner's association selects an attorney to appeal our property taxes. You can opt in, do nothing, or hire your own attorney (each unit is individually assessed and gets its own bill). Last time, I opted in and supposedly received "savings". You pay based on a calculation based how m...
by michaeljc70
Tue Apr 17, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7789

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

How difficult it is to find somebody who did this for 50 years running and is a current BH contributor. Do we have any retirees who retired in 1968 and used 2.5% withdrawal for 50 years? Then again if you were around when inflation did run at 15% or when the DOW index lost 90% if its value in three...
by michaeljc70
Tue Apr 17, 2018 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Got hit with a $2800 Medical bill. Can I negotiate?
Replies: 187
Views: 8916

Re: Got hit with a $2800 Medical bill. Can I negotiate?

A lot of provider contracts with health insurers don't allow further discounting to people insured. Don't you get an insurance discount? Was it in network? You say a small portion was covered, yet you hadn't reached your deductible. We had to get a CT Scan last year. The bill was $2100 but the insur...
by michaeljc70
Tue Apr 17, 2018 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 73
Views: 5252

Re: Help me explain why pre-tax investing can help when retiring in same bracket

A couple other things I didn't see mentioned (though I just skimmed): -If your income will be relatively low, part or most of your SS could be taxes in retirement with taxable income. The threshold for taxation of SS is low so this probably isn't a factor for most people. -If you are retiring early ...
by michaeljc70
Tue Apr 17, 2018 2:50 pm
Forum: Personal Consumer Issues
Topic: What percentage of you 2017 income can you account for?
Replies: 49
Views: 3196

Re: What percentage of you 2017 income can you account for?

I charge everything I reasonably can. I download all those into quicken almost daily and categorize them the best I can. I try not to wait more than a day or two as it is hard to remember especially for places like Costco where the purchase couple for many categories. I try to record cash purchases,...
by michaeljc70
Mon Apr 16, 2018 3:50 pm
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 119
Views: 6113

Re: BH travel tips?

When pushing the limits of my carry-on, I've run into the situation where my bag won't fit in the overhead bin. That leads to having to take individual things out on the plane or stand there trying to use brute force both of which can be embarrassing. I've started putting a few things in a plastic b...
by michaeljc70
Sat Apr 14, 2018 6:58 pm
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 119
Views: 6113

Re: BH travel tips?

If you’re going to use an ATM to get cash in the country’s currency be sure your spouse has an ATM card too, preferably in his/her own name. A bank ATM in Greece ate my card on a holiday which would have left us with very limited funds. We found another ATM and used my wife’s card with no problem. ...
by michaeljc70
Sat Apr 14, 2018 6:53 pm
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 119
Views: 6113

Re: BH travel tips?

So I'll be the oddball here. I go to Europe or Latin America twice a year, and I always check a 50 pound suitcase with enough clothing for two weeks. I try to carry on as little as possible. After I take my seat on the aircraft, I amuse myself by watching all those folks with the oversized backpack...
by michaeljc70
Sat Apr 14, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9710

Re: Trinity Study updated to 2018

One thing that stands out to me in the table in the article is if you are 75/25 you have almost a 50/50 chance of a 7% SWR over 30 years.
by michaeljc70
Sat Apr 14, 2018 6:38 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9710

Re: Trinity Study updated to 2018

Michael, Michael, I think using variable withdrawal methods helps a lot in not having so much unspent wealth. Also, if you look at most of the worst case scenarios (where sequence of returns will hit you hardest), it is toward the beginning of your retirement. Personally, after 5-10 years if things...
by michaeljc70
Sat Apr 14, 2018 3:55 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9710

Re: Trinity Study updated to 2018

Dbr, A withdrawal method that forces you to vary your withdrawals according to events is probably an intelligent approach to managing a portfolio, but it is not immune to anything. There is no such thing as immunity to what history hands you as your fate. But, Social Security exists, as well as do ...
by michaeljc70
Sat Apr 14, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9710

Re: Trinity Study updated to 2018

Michael, I think using variable withdrawal methods helps a lot in not having so much unspent wealth. Also, if you look at most of the worst case scenarios (where sequence of returns will hit you hardest), it is toward the beginning of your retirement. Personally, after 5-10 years if things have gon...
by michaeljc70
Sat Apr 14, 2018 2:07 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9710

Re: Trinity Study updated to 2018

A disservice is done every time the Trinity study is equated to a retirement income withdrawal strategy. As the latter, it would have to be the worst method. The thought of setting a withdrawal rate, then never looking again at actual outcome, portfolio balance, inflation, etc. is reckless. Statist...
by michaeljc70
Sat Apr 14, 2018 1:49 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9710

Re: Trinity Study updated to 2018

A disservice is done every time the Trinity study is equated to a retirement income withdrawal strategy. As the latter, it would have to be the worst method. The thought of setting a withdrawal rate, then never looking again at actual outcome, portfolio balance, inflation, etc. is reckless. Statist...
by michaeljc70
Sat Apr 14, 2018 1:28 pm
Forum: Personal Consumer Issues
Topic: How Far is too Far, Commuting?
Replies: 205
Views: 10616

Re: How Far is too Far, Commuting?

I live in a big city not far from downtown and commute to a close suburb. It is only 11 miles, but it can take an hour. Without traffic (like at 4am) it is a 15 minute ride (all highway). I almost find going such a short distance at a slow pace worse than going further at a faster pace. For me, ther...
by michaeljc70
Fri Apr 13, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Should mom file married filing separate?
Replies: 5
Views: 365

Re: Should mom file married filing separate?

As noted above, it would be best to run it both ways. I am guessing, but the husband has probably been benefiting from your Mom's joint filing for years. If it isn't beneficial to file separately, it seems reasonable to me that they work out something that would be fair to both of them. I mean, who ...
by michaeljc70
Fri Apr 13, 2018 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Appropriate to ask co-worker when retiring?
Replies: 35
Views: 2232

Re: Appropriate to ask co-worker when retiring?

No. But you can tell her that if she ever decides to leave her job, you would appreciate a heads up because you may know someone that is interested in the job. She may offer some information then. She may not.
by michaeljc70
Fri Apr 13, 2018 8:05 am
Forum: Personal Finance (Not Investing)
Topic: The "mechanics" of retiring
Replies: 20
Views: 3679

Re: The "mechanics" of retiring

Your desire to do ACA for your insurance will complicate your plans for the 72t. You need to know the upper limits. You may need to know your lower limit too if you live in a state where you could default to medicaid if below a limit. Someone I know does this and she has to create a taxable income ...
by michaeljc70
Thu Apr 12, 2018 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: The "mechanics" of retiring
Replies: 20
Views: 3679

Re: The "mechanics" of retiring

I am looking to possibly retire next year early (age 48 or 49). ... I am sort of wondering if the 4% rule is too generic for early retirement 4% is a generic rule of thumb for 30 year retirement. So, not only is it not "generic" for early retirement, it's not applicable at all to early retirement.....
by michaeljc70
Thu Apr 12, 2018 11:15 am
Forum: Personal Finance (Not Investing)
Topic: The "mechanics" of retiring
Replies: 20
Views: 3679

Re: The "mechanics" of retiring

Thanks for the suggested readings. I'll take a look at those. It seems to do 72t withdrawals and Roth conversations I will need to split my tIra into two accounts from what I've read and use one for each. I have never seen this suggestion. The IRS considers multiple Traditional IRA accounts as one ...
by michaeljc70
Thu Apr 12, 2018 9:18 am
Forum: Personal Finance (Not Investing)
Topic: The "mechanics" of retiring
Replies: 20
Views: 3679

Re: The "mechanics" of retiring

Thanks for the suggested readings. I'll take a look at those.

It seems to do 72t withdrawals and Roth conversations I will need to split my tIra into two accounts from what I've read and use one for each.
by michaeljc70
Wed Apr 11, 2018 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: The "mechanics" of retiring
Replies: 20
Views: 3679

Re: The "mechanics" of retiring

If you're doing 72t for 10 years, you are committed to withdrawing that amount. If you have a 70/30 all in tIRAs, and you have a 50% stock correction, you'll be down by 35% and forced to sell while prices are low, so make sure you don't have a blended or target fund, so you can sell bonds when stoc...
by michaeljc70
Wed Apr 11, 2018 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: The "mechanics" of retiring
Replies: 20
Views: 3679

The "mechanics" of retiring

I am looking to possibly retire next year early (age 48 or 49). I'm not sure what the correct terminology is, but I am interested in the mechanics of it. What I mean is do you keep so much in a money market, so much in a CD ladder, do you keep reinvesting dividends, etc. I will be basically followin...
by michaeljc70
Tue Apr 10, 2018 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Handling ageism in tech
Replies: 56
Views: 4368

Re: Handling ageism in tech

I've worked in IT (software development mostly) for 24 years. I've saved aggressively hoping not to work much past 50 (at least full time). As others have pointed out, lower -mid managers can be a dime a dozen. And they don't always make more than people with very marketable tech skills under them. ...
by michaeljc70
Tue Apr 10, 2018 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Parents want to sell house to save their business
Replies: 14
Views: 1634

Re: Parents want to sell house to save their business

I wouldn't have suggested that they can lose all their money and move in with you (even if you are fine with them moving in). Unless there is something obvious as to why this business would suddenly turn around, I would highly suggest to them not to sell their house or borrow any more money. Is it a...
by michaeljc70
Sat Apr 07, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 11296

Re: What is your AA, given your age? and, Why?

Post by michaeljc70 » Sat Apr 07, 2018 6:32 pm Cash is King wrote: ↑Sat Apr 07, 2018 6:25 pm Unread post by Bmac » Sat Apr 07, 2018 6:14 pm Cash is King wrote: ↑Sat Apr 07, 2018 4:32 pm Hello, A long time lurker but only my second post. I turn 58 this month. Our AA is 100% equities with no intentio...
by michaeljc70
Sat Apr 07, 2018 6:32 pm
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 11296

Re: What is your AA, given your age? and, Why?

Unread post by Bmac » Sat Apr 07, 2018 6:14 pm Cash is King wrote: ↑Sat Apr 07, 2018 4:32 pm Hello, A long time lurker but only my second post. I turn 58 this month. Our AA is 100% equities with no intention of changing AA. We own one index fund through a 401k and the rest is individual stocks. We ...
by michaeljc70
Sat Apr 07, 2018 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: Am I Crazy??? [Excess W-4 withholding, got large tax refund]
Replies: 31
Views: 3480

Re: Am I Crazy???

To be honest, in this low interest rate environment, I wouldn't worry terribly about it. But I try to not owe or get back much. My MM pays so little interest I don't think it is worth the time I put in to record it in Quicken. I guess it also depends on your NW. If you are starting out and have a sm...
by michaeljc70
Sat Apr 07, 2018 6:27 pm
Forum: Personal Consumer Issues
Topic: Help with decision on house
Replies: 6
Views: 593

Re: Help with decision on house

To answer your question about an architect, it depends. I live in an urban environment where there is not a ton of variation in houses due to the lot sizes. I used a builder that had built several houses in the area and tweaked the plan. I was not able to change the footprint (25' wide lot!) of the ...
by michaeljc70
Sat Apr 07, 2018 6:22 pm
Forum: Personal Consumer Issues
Topic: how much would a new kitchen cost?
Replies: 21
Views: 1702

Re: how much would a new kitchen cost?

I've seen those shows and I think those kitchens don't include the design and work the host does. They also probably have contractors that they either employ full time or give enough work that they get rates an average homeowner could not. Or want to be on TV and give a discounted rate. To be honest...
by michaeljc70
Sat Apr 07, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 91
Views: 8096

Re: Effect of spending money on appearance in career

I just came away from a meeting in which I asked for a promotion and was told likely another six months. No there was nothing I could do extra - my clients love me, my manager loves me, I'm bringing in work, I am out performing. This is driving me crazy as every other person in my position was prom...
by michaeljc70
Sat Apr 07, 2018 6:05 pm
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 11296

Re: What is your AA, given your age? and, Why?

Age 47. AA 75/25. Going to 70/30 for retirement hopefully in next 2-5 years. Why? Because if you have 25x expenses and 30% in FI, that means you have 7.5 years of expenses in FI to withstand a downturn (assuming no other income) without selling any stocks. And I tend to not be risk averse.
by michaeljc70
Sat Apr 07, 2018 10:17 am
Forum: Personal Consumer Issues
Topic: Builder wants $800 to vent a gas cooktop
Replies: 53
Views: 3969

Re: Builder wants $800 to vent a gas cooktop

Apparently a lot of cooking snobs here. We along with a lot of people we know have OTR microwaves and many do not vent outside. Sure it's not ideal but it's worked fine for decades. If we happen to burn something bad and have a lot of smoke (maybe a couple times a year), we then open the window in ...
by michaeljc70
Sat Apr 07, 2018 10:13 am
Forum: Personal Consumer Issues
Topic: Tequila and Magaritas
Replies: 59
Views: 4373

Re: Tequila and Magaritas

I agree with the comment that you never know at a restaurant if you are going to get a good margarita. Most rely on those bottled sweet and sour mixes which are terrible in my opinion. That is why you get bad margaritas most places. Fresh lime juice is expensive. I use the Costco Kirkland silver teq...
by michaeljc70
Fri Apr 06, 2018 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Your Monthly Cost of Living
Replies: 65
Views: 6431

Re: Your Monthly Cost of Living

I'm not sure you are comparing apples to apples. Mortgage and rent are not equivalent. My mortgage is $1400 but almost $1000 of that is principal aka building equity.
by michaeljc70
Fri Apr 06, 2018 7:01 pm
Forum: Investing - Theory, News & General
Topic: Trying the Impossible - Financing 30-Year Retirements with 40-Year Careers
Replies: 118
Views: 17112

Re: Trying the Impossible - Financing 30-Year Retirements with 40-Year Careers

Many in this thread are assuming retiring is a good thing. But, if you want to live as long as possible, that may not be the case. "Researchers at Oregon State University warned that retiring early could be a risk factor for an early death. They found healthy adults who retired one year past 65 had...
by michaeljc70
Fri Apr 06, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: The "American companies I invest in already have international exposure" argument --- valid or not?
Replies: 139
Views: 10040

Re: The "American companies I invest in already have international exposure" argument --- valid or not?

I listened to a podcast recently featuring Michael Kitces. He has done a lot of research on retirement planning, particularly around the 4% rule. One interesting thing he said is that the 4% rule held pretty much in most developed economies over time. The exception was countries that lost a major wa...
by michaeljc70
Fri Apr 06, 2018 6:47 pm
Forum: Investing - Theory, News & General
Topic: Swedroe: Look Beyond 60/40 Portfolio
Replies: 237
Views: 14762

Re: Swedroe: Look Beyond 60/40 Portfolio

I suspect a lot of people, if they move into some other less correlated assets other than stocks/bonds, will have a hard time holding their AA when there are long periods where they underperform. We just had a 9 year bull market (who knows if it is over or not). Imagine if you were holding some of t...
by michaeljc70
Fri Apr 06, 2018 6:35 pm
Forum: Investing - Theory, News & General
Topic: Trying the Impossible - Financing 30-Year Retirements with 40-Year Careers
Replies: 118
Views: 17112

Re: Trying the Impossible - Financing 30-Year Retirements with 40-Year Careers

Many in this thread are assuming retiring is a good thing. But, if you want to live as long as possible, that may not be the case. "Researchers at Oregon State University warned that retiring early could be a risk factor for an early death. They found healthy adults who retired one year past 65 had...
by michaeljc70
Fri Apr 06, 2018 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Insurance Rate Decrease
Replies: 13
Views: 1115

Re: Auto Insurance Rate Decrease

Sometimes insurance companies under estimate their costs (claims really) and sometimes they overestimate them. Then they adjust premiums accordingly. I wouldn't concentrate on one years premium but look at it over maybe 3 or 5 years. If they lowered it this year and it went up 20% last year I wouldn...