Search found 838 matches

by GAAP
Tue May 21, 2019 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning/Inflation & Growth Rates
Replies: 3
Views: 396

Re: Retirement Planning/Inflation & Growth Rates

If you're going to separate inflation and returns, then 3% inflation is reasonably safe given what we know today. I have trouble seeing how you're going to see much, if any, growth post-retirement unless you aren't withdrawing from it -- maybe I just don't understand what the number means. I have ev...
by GAAP
Tue May 21, 2019 12:56 pm
Forum: Personal Investments
Topic: Early Retirement Bridge Approach
Replies: 18
Views: 2742

Re: Early Retirement Bridge Approach

Roth Conversion can be done earlier than the 5 years you mentioned -- whenever it makes sense. 1 and 2 together -- but you'll need to be serious about the taxable savings, since you'll need to fund a lot more in less time. Roth vs. Traditional for you or your spouse is the same calculation. If it ma...
by GAAP
Sun May 19, 2019 10:17 am
Forum: Investing - Theory, News & General
Topic: Actual Experience as true measure of risk tolerance
Replies: 76
Views: 5351

Re: Actual Experience as true measure of risk tolerance

My experience over the last 40 or so years is that I do have a higher risk tolerance -- but that is based upon hindsight, and not really useful to help someone just starting out. Don't look all the time -- it magnifies the volatility. I think the modern ease of access to "market knowledge" and the a...
by GAAP
Sun May 19, 2019 10:00 am
Forum: Investing - Theory, News & General
Topic: Valuations of International Equities vs. US Equities
Replies: 29
Views: 2483

Re: Valuations of International Equities vs. US Equities

For more input on the topic, take a look at https://www.starcapital.de/en/research/ ... ectations/ and also some of the research available on their site.
by GAAP
Sun May 19, 2019 9:54 am
Forum: Personal Consumer Issues
Topic: de-googling my life: Keep Notes alternatives
Replies: 41
Views: 5609

Re: de-googling my life: Keep Notes alternatives

Separate the cloud function from the notebook function. Use a standalone notebook product, use a veracrypt volume on your cloud fileshare of choice (like Dropbox). That's pretty much what I do for stuff I don't want Dropbox admins ever having access to.
by GAAP
Sat May 18, 2019 10:21 am
Forum: Personal Consumer Issues
Topic: $ Decisions: environmental, save the planet, organic, etc
Replies: 29
Views: 1483

Re: $ Decisions: environmental, save the planet, organic, etc

I don't find any of these to be purely economic decisions -- and even if they were, there are other, hard to measure economic benefits from some of them. Choosing leaner meat, for example, may mean reduced medical expenses or improved general health later -- good luck finding the numbers for the cos...
by GAAP
Thu May 16, 2019 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Logistics of splitting tuition costs with child
Replies: 77
Views: 3401

Re: Logistics of splitting tuition costs with child

My parent's method was to say that they would pay for tuition and books with an upper limit based upon attendance at a local state college. We could go elsewhere, but would be responsible for the difference. Doing something like this would give you a much better number to budget for -- and the choic...
by GAAP
Thu May 16, 2019 12:26 pm
Forum: Investing - Theory, News & General
Topic: Pre-RMD Retirement Sweet Spot - Accelerating IRA Withdrawals vs. Roth Conversion
Replies: 51
Views: 3958

Re: Pre-RMD Retirement Sweet Spot - Accelerating IRA Withdrawals vs. Roth Conversion

If you need $1000 next year for income from your IRA account, you can withdraw it, pay taxes on it, spend it. You can also convert it to Roth, pay taxes on the conversion, withdraw it from Roth, and spend it. Those two options are mathematically the same, if you need all of the money immediately. If...
by GAAP
Thu May 16, 2019 10:59 am
Forum: Personal Investments
Topic: CAPE-based asset allocation strategy?
Replies: 71
Views: 3469

Re: CAPE-based asset allocation strategy?

I've been toying with the idea of adjusting my allocation rebalancing bands based upon CAPE -- shifting the bands so that the target is no longer in the center of the bands. I haven't had time to actually look at it -- and I'm generally leery of tactical asset allocation, so may never do so. The ide...
by GAAP
Thu May 16, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: Any conservative young investors?
Replies: 68
Views: 6297

Re: Any conservative young investors?

I'm not young (retired), but have been 70%+ stocks my whole life. My mother died at 87 with around 95% stocks. That said, I learned by experience that I could handle the volatility -- many of my peers learned the opposite. When you're just starting out, you don't know what your risk tolerance really...
by GAAP
Thu May 16, 2019 10:34 am
Forum: Personal Consumer Issues
Topic: Crawl space encapsulation
Replies: 36
Views: 2702

Re: Crawl space encapsulation

What is the water table level? My crawlspace can be as little as a foot above the water table at some times in the year. There's not much point in grading, building a drain system, etc. if the water will just ooze out of the soil anyway...
by GAAP
Wed May 15, 2019 6:55 pm
Forum: Personal Investments
Topic: Does your retirement plan work if stocks are flat or in decline for decades?
Replies: 180
Views: 10320

Re: Does your retirement plan work if stocks are flat or in decline for decades?

Or another way to put it does your retirement plan have a contingency for stocks being flat or declining throughout your retirement? Not "throughout" unless I die a lot earlier than expected. Extended periods of bad stock returns, yes. Long term negative returns (as-in much longer than any drop we'...
by GAAP
Wed May 15, 2019 12:29 pm
Forum: Investing - Theory, News & General
Topic: WSJ: When to Pick Mutual Fund over ETF?
Replies: 21
Views: 2876

Re: WSJ: When to Pick Mutual Fund over ETF?

Bid/ask on the Vanguard ETFs that I hold is usually under 2 cents. I prefer ETFs in particular because I can make a decision to buy/sell based upon the market state now, rather than whatever might happen at the end of the day. That is particularly helpful for TLH. I have additional reasons that pro...
by GAAP
Sun Apr 21, 2019 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Credit and Debit card safety
Replies: 26
Views: 1353

Re: Credit and Debit card safety

You could always contact your bank to limit the debit capability -- Schwab does that if you ask. Cash Withdrawal limits and debit limits can be different.
by GAAP
Fri Apr 19, 2019 3:46 pm
Forum: Personal Consumer Issues
Topic: How far would you commute?
Replies: 104
Views: 4760

Re: How far would you commute?

Yes, it's 24 miles and an hour commute (sometimes more). It sounds odd if you haven't seen Boston traffic, but normal if you have. And you are right to assume no additional pay is being offered and I will be traveling a toll road (Mass Pike). I used to commute in the Bay Area -- sounds normal to ni...
by GAAP
Fri Apr 19, 2019 3:38 pm
Forum: Personal Consumer Issues
Topic: How far would you commute?
Replies: 104
Views: 4760

Re: How far would you commute?

It's not the distance as much as the time. 24 miles in some places is 24 minutes or less. From what I remember of Boston traffic, it would be a lot more. I refused jobs that required additional commute without additional pay. From my perspective that 24 miles is really 48 miles round trip x your hou...
by GAAP
Fri Apr 19, 2019 11:28 am
Forum: Personal Investments
Topic: Leave a job with a pension?
Replies: 39
Views: 4325

Re: Leave a job with a pension?

You didn't state whether that pension is nominal or real -- makes a big difference over time. If real, what are the limits? I know of a real pension that matches inflation up to 3%, and then no more. I know another that matches up to 3% at a 100% and from 3-6% at 50%.
by GAAP
Fri Apr 19, 2019 11:19 am
Forum: Investing - Theory, News & General
Topic: This could be the biggest risk that retirees face?
Replies: 117
Views: 8493

Re: This could be the biggest risk that retirees face?

If you treat the retirement period as a perpetuity, you don't worry about longevity. However, that does mean that you will leave money on the table when you die -- an enforced bequest, essentially -- and you will have to withdraw a smaller amount from your portfolio. TANSTAAFL...
by GAAP
Wed Apr 17, 2019 5:18 pm
Forum: Investing - Theory, News & General
Topic: Reverse Mortgage for Sequence of return risk
Replies: 30
Views: 1346

Re: Reverse Mortgage for Sequence of return risk

HELOC and HECM are not the same thing. The first is a mortgage that requires a title change, and must be repaid after a fixed number years. The second is a reverse mortgage that is non-recourse and doesn't expire until you die. It sounds like you mean HECM, not HELOC. I suggest you read the Pfau boo...
by GAAP
Tue Apr 16, 2019 11:34 am
Forum: Investing - Theory, News & General
Topic: Home equity as % of AA
Replies: 41
Views: 2973

Re: Home equity as % of AA

"Home Equity" is basically useless/meaningless until you either sell the house, or get a loan against it. The second case only provides true value if it is a non-recourse loan that you walk away from, or a HECM that you draw from. Until then, it's basically a guess, determined by an estimate of sale...
by GAAP
Thu Apr 11, 2019 11:41 am
Forum: Personal Investments
Topic: Young couple figuring out contributions, allocation, and forced 401k closure
Replies: 15
Views: 2308

Re: Young couple figuring out contributions, allocation, and forced 401k closure

I've been reading this forum for a couple months, and I'm learning a lot from the wisdom here. Thanks for making this a great community! After reading The Bogleheads Guide to Investing, I want to have a 3-4 fund portfolio, and I have a basic plan for contributions below. As a young married couple, ...
by GAAP
Thu Apr 11, 2019 11:40 am
Forum: Personal Investments
Topic: Young couple figuring out contributions, allocation, and forced 401k closure
Replies: 15
Views: 2308

Re: Young couple figuring out contributions, allocation, and forced 401k closure

I've been reading this forum for a couple months, and I'm learning a lot from the wisdom here. Thanks for making this a great community! After reading The Bogleheads Guide to Investing, I want to have a 3-4 fund portfolio, and I have a basic plan for contributions below. As a young married couple, ...
by GAAP
Thu Apr 11, 2019 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Paying Estimated Taxes in Retirement
Replies: 31
Views: 2932

Re: Paying Estimated Taxes in Retirement

I would recommend setting up withholding for regular monthly income streams such as pension and SS. And then use estimated tax payments for irregular income. That's what I do to cover my December Roth conversion amount... That's been my general thought until recently. Now, I'm leaning toward minimi...
by GAAP
Wed Apr 10, 2019 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Rent vs buy calculator that accounts for 2019 tax changes?
Replies: 5
Views: 432

Re: Rent vs buy calculator that accounts for 2019 tax changes?

I never considered potential tax benefits in the decision.

If you're looking at a 30-year mortgage, or even a 10-year mortgage, betting on taxes is suspect.
by GAAP
Wed Apr 10, 2019 12:13 pm
Forum: Investing - Theory, News & General
Topic: Baby boomer vicious cycle crash
Replies: 63
Views: 5594

Re: Baby boomer vicious cycle crash

If you're a typical boomer, you were also told to sell your house to fund your retirement -- that would be selling into a buyer's market. Whether any of that actually happens will only be answered well afterwards. Control what you can reasonably control, don't try to predict the unpredictable, learn...
by GAAP
Wed Apr 10, 2019 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Used Laptops/Chromebooks?
Replies: 6
Views: 394

Re: Used Laptops/Chromebooks?

I wouldn't use a previously-owned computer for anything that is tied to my finances, personal information, etc. If you want it for generic browsing without and personally-identifiable information, then maybe. I've worked in IT/PC support/networking since the early 1980's and wouldn't trust my abilit...
by GAAP
Wed Apr 10, 2019 12:01 pm
Forum: Personal Investments
Topic: Challenge Setting Aside Monthly Savings
Replies: 12
Views: 1044

Re: Challenge Setting Aside Monthly Savings

For years, I set aside an even amount each month for large, infrequently recurring expenses like Property taxes, insurance, vehicle registration, etc. I simply treated that portion of my savings as reserves and basically converted uneven non-emergency (predicatable) expenses to a consistent monthly ...
by GAAP
Tue Apr 09, 2019 5:51 pm
Forum: Investing - Theory, News & General
Topic: Cash-out refinance and buy a SPIA vs. reverse mortgage?
Replies: 31
Views: 1610

Re: Cash-out refinance and buy a SPIA vs. reverse mortgage?

Looking back, I was confused as well. I don't see the point in taking out a reverse mortgage LOC only to then use the proceeds to buy a SPIA. The point is to take out the LOC early and not use the proceeds unless you need them. Taking out the LOC early allows the value to grow over time. Buying the...
by GAAP
Tue Apr 09, 2019 12:02 pm
Forum: Investing - Theory, News & General
Topic: What websites do you use for the latest investing news?
Replies: 51
Views: 4074

Re: What websites do you use for the latest investing news?

I don't -- unless I happen to see it with the other news. Even then, I don't pay attention, since my strategy/tactics/plan and AA won't change.
by GAAP
Tue Apr 09, 2019 11:47 am
Forum: Investing - Theory, News & General
Topic: Cash-out refinance and buy a SPIA vs. reverse mortgage?
Replies: 31
Views: 1610

Re: Cash-out refinance and buy a SPIA vs. reverse mortgage?

I think an alternative might be to take out a HECM LOC at age 62 (the minimum), don't touch it (let it grow as much as possible), and then buy the SPIA if needed at 80. There is no requirement to take a cash-out HECM.
by GAAP
Tue Apr 09, 2019 11:03 am
Forum: Personal Investments
Topic: Real Estate Investing - Actual Property vs an Index fund
Replies: 10
Views: 1497

Re: Real Estate Investing - Actual Property vs an Index fund

Physical property is subject to local conditions and most folks don't have anywhere near enough capital to diversify away from that fact. You could say that you're diversified all over town -- that wasn't enough to help the folks in Paradise, CA last year... An index fund is simpler, far more divers...
by GAAP
Tue Apr 09, 2019 10:52 am
Forum: Investing - Theory, News & General
Topic: Retirees: Are you annually spending in Real or Nominal Terms?
Replies: 63
Views: 3899

Re: Retirees: Are you annually spending in Real or Nominal Terms?

I am fundamentally opposed to using inflation rates to drive my withdrawal strategy -- that could be a remarkably bad idea depending upon conditions. But then, I don't like the SWR concept in the first place. Withdrawals have to adjust to reality -- whether you use an explicitly variable method or j...
by GAAP
Tue Apr 09, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: Cash-out refinance and buy a SPIA vs. reverse mortgage?
Replies: 31
Views: 1610

Re: Cash-out refinance and buy a SPIA vs. reverse mortgage?

...If my wife and I are both deceased, we won’t need a house anymore. Presumably, the house would get sold and the mortgage paid off with the sale proceeds. Just like selling any other home that has a mortgage. The problem that comes up is what if you have the audacity to die in a bad real estate m...
by GAAP
Tue Apr 09, 2019 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgages Pro's and Cons
Replies: 23
Views: 1399

Re: Reverse Mortgages Pro's and Cons

Here is a link that could be a good read to determine other options. https://clark.com/homes-real-estate/4-alternatives-to-a-reverse-mortgage Here a couple of thoughts that i have about reverse mortgages. 1.Consumer reports and Clark Howard are not fans of these products. These are two resources th...
by GAAP
Tue Apr 09, 2019 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgage &Future Security?
Replies: 11
Views: 858

Re: Reverse Mortgage &Future Security?

I suggest you read "Reverse Mortgages: How to use Reverse Mortgages to Secure Your Retirement" by Wade Pfau. $19.95 Paperback, free on Kindle: https://www.amazon.com/gp/product/1945640049/ . Make sure you get the latest version (2nd edition). The LOC strategy may work for you -- and it could actuall...
by GAAP
Mon Apr 08, 2019 3:41 pm
Forum: Personal Investments
Topic: Another annuity vs lump sum distribution
Replies: 3
Views: 288

Re: Another annuity vs lump sum distribution

In a similar circumstance, I rolled over to a 401(k) and then subsequently to an IRA -- sounds like you may have a similar option. For another nominal pension that has no rollover option, I plan to take the the single-life option for similar longevity reasons. You can use NPV calculations with an as...
by GAAP
Mon Apr 08, 2019 3:35 pm
Forum: Personal Investments
Topic: How far from retirement should you start adjusting asset allocation?
Replies: 14
Views: 1305

Re: How far from retirement should you start adjusting asset allocation?

Since you're in Washington, in the 24% bracket, and with a net worth greater than $2M, it is highly likely that you will be subject to Washington Estate taxes. Roth conversions can be one way to reduce that impact in the future -- no point in paying estate tax on monies owed to the IRS... AA changes...
by GAAP
Fri Apr 05, 2019 11:34 am
Forum: Personal Investments
Topic: Defined Benefit Plans after leaving job - how to decide whether to leave in or withdraw?
Replies: 11
Views: 634

Re: Defined Benefit Plans after leaving job - how to decide whether to leave in or withdraw?

You're assuming that taking the money out is an option. It was for one of my prior employers, but not the other. The plan that allowed removing the money also allowed a rollover into an IRA which is the option that I chose. This allowed me more room for Roth Conversions early-on by reducing taxable ...
by GAAP
Fri Apr 05, 2019 11:18 am
Forum: Personal Consumer Issues
Topic: French movies on Netflix
Replies: 40
Views: 2046

Re: French movies on Netflix

PG-13 may be tough -- but there are a lot of French film festivals around the country. You wouldn't be limited to PG-13, and the organizers may be able to provide some suggestions.
by GAAP
Sat Mar 30, 2019 7:33 pm
Forum: Personal Consumer Issues
Topic: Are 2004 Ford Rangers Reliable?
Replies: 20
Views: 1367

Re: Are 2004 Ford Rangers Reliable?

Still have a 1994 Ranger with 400K miles on it -- but honestly, the answer depends as much upon the owner(s) as anything else when you're looking at a 15 year old vehicle.
by GAAP
Thu Mar 28, 2019 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Are RMDs that bad if you're not an over-saver?
Replies: 139
Views: 13333

Re: Are RMDs that bad if you're not an over-saver?

Not sure if you are asking me or Admiral but answer is "yes". But that (inherited IRAs) doesn't enter into this debate. For the purpose of the thread, celia created the spreadsheet to illustrate two (2) identical 70 year olds (each created and funded/owned their own IRA). The only difference being ...
by GAAP
Wed Mar 27, 2019 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Are RMDs that bad if you're not an over-saver?
Replies: 139
Views: 13333

Re: Are RMDs that bad if you're not an over-saver?

......What would be unfair would be for a younger spouse to be penalized for being younger...... But it's not unfair for a single person to be penalized for being single? You do realize that there are separate tables for RMDs in an account that you created and funded vs. one that you inherited?
by GAAP
Wed Mar 27, 2019 12:05 pm
Forum: Personal Consumer Issues
Topic: Bogleheads, do you have (unwise financially) friends? And how do you deal with them?
Replies: 76
Views: 3915

Re: Bogleheads, do you have (unwise financially) friends? And how do you deal with them?

If you wish to remain friends, practice giving him no response to grab on to when he complains about money to you. Eventually a lack of engagement should extinguish the behavior unless he just likes to listen to himself complain. +1 Avoid the topic, make it obvious you don't want to hear it. There ...
by GAAP
Wed Mar 27, 2019 11:58 am
Forum: Personal Investments
Topic: 60/40 now or closer to retirement?
Replies: 32
Views: 3658

Re: 60/40 now or closer to retirement?

Part of the answer has to be your tolerance for price drops. Unfortunately, that is difficult to assess prior to a market event. Another part has to be where you are in your accumulation phase. At the start, new contributions will likely contribute more to portfolio growth than any earnings on the p...
by GAAP
Tue Mar 26, 2019 11:53 am
Forum: Personal Investments
Topic: 4% rule? Never touch principle?
Replies: 65
Views: 5906

Re: 4% rule? Never touch principle?

Im confused again, lol Ok, so i read to today that the 4% rule is only for a 30 year period. I was under the impression that at this withdrawal rate, you would never touch the principle balance. So, if thats the case, what % to withdraw would be a safe bet to never touch the principle? Actually it'...
by GAAP
Tue Mar 26, 2019 11:45 am
Forum: Investing - Theory, News & General
Topic: How to factor for market crashes to stay "on-track"?
Replies: 44
Views: 2013

Re: How to factor for market crashes to stay "on-track"?

A crash during one's accumulation phase is about the best thing that can happen. Gives you the opportunity to load up on equities at historically cheap prices. That might depend upon when in the accumulation phase it happens. The closer you are to distribution, the less time you have to benefit fro...
by GAAP
Tue Mar 26, 2019 11:31 am
Forum: Investing - Theory, News & General
Topic: How to factor for market crashes to stay "on-track"?
Replies: 44
Views: 2013

Re: How to factor for market crashes to stay "on-track"?

One way to look at this might be to use a funding ratio. BobK has an excellent series of posts on that topic: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=219878 . Another way to look at this is to discount your track on the assumption that bad stuff will happen. For example, you could assu...
by GAAP
Mon Mar 25, 2019 7:21 pm
Forum: Personal Investments
Topic: Surprised on tax benefit after first year as landlord!
Replies: 20
Views: 3427

Re: Surprised on tax benefit after first year as landlord!

Just keep in mind that the benefit of depreciation today is balanced by the reduction in cost basis when you sell -- TANSTAAFL...
by GAAP
Sun Mar 24, 2019 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Using the Time Value of Money Formula to Determine Withdrawals: Year 2000 Retiree Example
Replies: 55
Views: 3741

Re: Using the Time Value of Money Formula to Determine Withdrawals: Year 2000 Retiree Example

What about an approach where you use this or the x% rule, whichever is lesser? Wouldn't that be the safest thing to do? Or is the goal of this approach not to survive, but something else? The thing I like about x% is that the goal is to survive infinitely. I don't really like the approach of guessi...
by GAAP
Sat Mar 23, 2019 10:58 am
Forum: Personal Consumer Issues
Topic: Adjustable dumbbell recommendations
Replies: 65
Views: 3141

Re: Adjustable dumbbell recommendations

I used to use PowerBlocks. The biggest issue I had with them is the limited flexibility for increasing workload over time in small amounts. The jumps were just too big -- especially at the bottom of the scale. At the time, there was only one model -- now they make several in different ranges that sh...