Search found 668 matches

by smitcat
Thu Nov 23, 2017 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 145
Views: 8539

Re: Why not take Social Security at 62

I ran the numbers through FireCalc at various ages I take SS, it really did not affect the outcome. I had the same results - small differences only. I also did the same thing in Fidelity RIP and again, only small differences. I'm in my mid 50's and assumed living till 95.... I got similar results w...
by smitcat
Wed Nov 22, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

More: I looked around, in 2008 and I saw my best friends and neighbors with PERs tier 1, Federal pensions, Union pensions, and were doing OK with newer cars and were planning to defer SS to FRA if already retired, or defer to 70 (my brother and sisters). I saw that their Income was more predictable...
by smitcat
Wed Nov 22, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

Sig line.... "Rev90517; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax 25%. Early SS. FundRatio (FR) >1.1 67/70yo" It does not make a lot of sense that you would be bound by a 25% tax rate given the types of inco...
by smitcat
Wed Nov 22, 2017 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 145
Views: 8539

Re: Why not take Social Security at 62

If I have zero real need for SS in retirement and it's a "bonus" that will just be tossed in the market, then I'll wait until 70 to minimize longevity risk. An 8% annual increase seems massive in this low rate environment, and a larger annuity will provide a lot of safety in old age. If I've been l...
by smitcat
Wed Nov 22, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

... IMO, it should be illegal to sell someone a high-cost tax-deferred annuity inside an already tax-deferred product. Is it worse in an IRA than in a taxable account? In a taxable account, you get the benefit of tax deferral at the cost of converting your qualified dividends and capital gains to o...
by smitcat
Wed Nov 22, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

"Approximate Illustration of what we have, normalized to 100, Nov 2008. Minimum Income Acct value by 2018 is 5% annual increases, compounding= $162,000. Withdrawal rate at end of 10th year =$8144. This is equivalent to a 4% SWR on a hypothetical "Actual" BH account of ~$215,460," I think what you ar...
by smitcat
Tue Nov 21, 2017 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

3/ What Market drop affects? Our GLWB income is protected on any drop. The Accumulation Acct can be -99% in the first year, and my future 10 year GWLB income would still be $8144/a. I protected by downside risk but I limited some of my upside by the 3.5% fee. I bought a PER tier 1, pension plan Got...
by smitcat
Tue Nov 21, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 145
Views: 8539

Re: Why not take Social Security at 62

People with modest retirement savings should probably take SS whenever they stop full-time work, whether 62 or some years later. This helps maintain their lifestyle. People with "large" tax-sheltered accumulations should delay SS to age 70 to give them time to spend down some of the tax-deferred ac...
by smitcat
Tue Nov 21, 2017 9:42 am
Forum: Investing - Theory, News & General
Topic: How long does it take a losing company to shutdown?
Replies: 16
Views: 969

Re: How long does it take a loosing company to shutdown?

My company has been loosing money for about a year now, I am worried and was thinking they won't be loosing money forever. How long usually companies stay in the market till the give up? Do they have negative cash flow? I don't have an access to the cash flow statement, however I can ask about that...
by smitcat
Tue Nov 21, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey says don't use credit cards, even if you pay them off
Replies: 221
Views: 12887

Re: Dave Ramsey says don't use credit cards, even if you pay them off

Jags4186 wrote:
Mon Nov 20, 2017 9:07 pm
LEB1230 wrote:
Mon Nov 20, 2017 8:59 pm
Jags4186 wrote:
Mon Nov 20, 2017 4:29 pm
I certainly save more than Dave Ramsey recommends
What does he recommend?
15%
What is his 15% recommendation taken off of?
by smitcat
Tue Nov 21, 2017 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 145
Views: 8539

Re: Why not take Social Security at 62

You can play with the Bedrock capital SS calculator but be careful with where you set the variable inputs for inflation and discount as well as ages.... http://www.bedrockcapital.com/ssanalyze/ We will likely be delaying SS as long as possible (70/64) for a number of reasons: - Roth conversions - be...
by smitcat
Tue Nov 21, 2017 8:37 am
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

Trying to determine: #1 Should she remain in the Variable Annuity w/ Guaranteed Minimum Balance Benefit with total fee's of about ~2.6% this would allow for her to invest more aggressively - with possibility of step ups and a guaranteed minimum benefit ? ( note the accumulated value is now more tha...
by smitcat
Tue Nov 21, 2017 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

What baseline returns for each and math did you utilize to confirm that your relative income will be higher if there is a correction? What amount of relative correction would be required for this to come out ahead? It's complicated for me to explain. I suggest that you refer to Vanguard GLWB explan...
by smitcat
Mon Nov 20, 2017 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

Smitcat, Taxes are not material in OPs mom's case because the original funds are from taxed deferred IRA. She would be obligated to pay any tax, which may be $0. If Mom should outlive the Accumulation Acct value, she would still be obligated to pay taxes due on the annuity company's money which wou...
by smitcat
Mon Nov 20, 2017 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 35
Views: 1508

Re: Variable Annuity - Time to Surrender ?

I too dumped 50% of IRA s into these annuities 2008-2012. :oops: I am glad I did dumped that much into this type of annuity when we did and would have done more if our FA and Regulatory practices allowed it. :moneybag :dollar At this time and in the near 0-2 years, if either the Equity or Debt Mark...
by smitcat
Mon Nov 20, 2017 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey says don't use credit cards, even if you pay them off
Replies: 221
Views: 12887

Re: Dave Ramsey says don't use credit cards, even if you pay them off

willthrill81 wrote:
Mon Nov 20, 2017 5:24 pm
smitcat wrote:
Mon Nov 20, 2017 5:12 pm
A person can have no debt and have negative net worth or they can have 20,000 debt and be worth $10 million dollars.
Please elaborate on specifically how a person can have a negative net worth with no debt.
Sorry - no net worth , living paycheck to paycheck.
by smitcat
Mon Nov 20, 2017 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey says don't use credit cards, even if you pay them off
Replies: 221
Views: 12887

Re: Dave Ramsey says don't use credit cards, even if you pay them off

On principle, he preaches for one to eliminate and then avoid ALL debt. Credit cards (even paid in full monthly) is still technically debt. I do not think debt is necessarily an important metric to keep track of compared to net worth - things like spending budgets, savings rate, and your planning n...
by smitcat
Mon Nov 20, 2017 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey says don't use credit cards, even if you pay them off
Replies: 221
Views: 12887

Re: Dave Ramsey says don't use credit cards, even if you pay them off

"Citation please? I'm not trying to be a jerk. I did some Googling and I could find a large number of studies showing that people buy more with plastic, but I didn't see any that seemed to break it down by "financial literacy". To be honest, from what I know about psychology and behavioral economic...
by smitcat
Mon Nov 20, 2017 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey says don't use credit cards, even if you pay them off
Replies: 221
Views: 12887

Re: Dave Ramsey says don't use credit cards, even if you pay them off

"Citation please? I'm not trying to be a jerk. I did some Googling and I could find a large number of studies showing that people buy more with plastic, but I didn't see any that seemed to break it down by "financial literacy". To be honest, from what I know about psychology and behavioral economics...
by smitcat
Mon Nov 20, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Retire couple Roth Conversion Help
Replies: 39
Views: 2062

Re: Retire couple Roth Conversion Help

When completely filled out the RPM allows you to directly compare the base case with a Roth conversion model. You can then tweak the Roth conversions and 'watch' the resultant changes as the comparison remains clear and obvious on the output charts. If you are like us the largest problem you will h...
by smitcat
Mon Nov 20, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Retire couple Roth Conversion Help
Replies: 39
Views: 2062

Re: Retire couple Roth Conversion Help

If you run your scenarios through I-ORP or the Retiree Portfolio Model you should get an idea as to the payoff on your conversion approach. A note on #4. Medicare part B premium is based on Modified Adjusted Gross income. Over $170,000 two years prior and the part B premium goes up. At the top of t...
by smitcat
Mon Nov 20, 2017 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey says don't use credit cards, even if you pay them off
Replies: 221
Views: 12887

Re: Dave Ramsey says don't use credit cards, even if you pay them off

90% of Americans are going to be worse off with credit cards than not. His advice is catered to those 90%, which is fine. It's not a good look to crash on someone that is doing good work for an overwhelming majority of Americans AS COMPARED to their alternative, which is not the BH lifestyle, which...
by smitcat
Mon Nov 20, 2017 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

I hate to owe and pay interest that has no tax benefit. When I bought my car this past January I financed the car as I got a better deal. There was no pre-payment penalty as long as I made 2 payments. So On the third payment the car got paid off with cash on hand. I am one of the ones that like to ...
by smitcat
Mon Nov 20, 2017 9:17 am
Forum: Personal Consumer Issues
Topic: Honeymoon Suggestions
Replies: 26
Views: 1630

Re: Honeymoon Suggestions

Hello, We are looking for some suggestions regarding honeymoon destinations. My fiancé and I will get married in June 2018. We will be departing for the honeymoon after our wedding (end of June 2018) for a 7 day trip. Besides Canada, neither of us have traveled outside of the USA. We are looking fo...
by smitcat
Mon Nov 20, 2017 7:32 am
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

Sometimes I wonder if this aversion to car loans isn't rooted in biases based on historical rates. There were times when car loan rates where significantly higher than mortgages and in some cases 2 -3 times higher. In this situation, if you had the available funds, It was clearly advantageous to pa...
by smitcat
Sun Nov 19, 2017 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey says don't use credit cards, even if you pay them off
Replies: 221
Views: 12887

Re: Dave Ramsey says don't use credit cards, even if you pay them off

We use credit cards for just about everything we purchase lately as the cards we have almost all have good 1.5-4 points dependent upon the card and the purchase. Between the points and the bonus offers this represents a pretty good benefit that can pay for 1 to 1-1/2 one week vacations for my wife a...
by smitcat
Sat Nov 18, 2017 6:14 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity Help - Parent's finances
Replies: 46
Views: 1844

Re: Variable Annuity Help - Parent's finances

I am interested in this post as well as the excellent summaries as we have an annuity that we are struggling with that is similar in some ways. If I take this summary one step further would this be correct? - you give them $100K at age 54 - 11 years later you are 65 - at 65 you can annuitize and th...
by smitcat
Sat Nov 18, 2017 6:14 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity Help - Parent's finances
Replies: 46
Views: 1844

Re: Variable Annuity Help - Parent's finances

I think this is the right prospectus. http://vpx.newriver.com/GetContract1.asp?clientid=nwvpx&fundid=63890A173 The minimum benefit base after ten years is about $170k; 100k + 10 * 7k. It would only go higher when the Contract Value goes above $170k on a contract anniversary. That is not likely to h...
by smitcat
Sat Nov 18, 2017 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity Help - Parent's finances
Replies: 46
Views: 1844

Re: Variable Annuity Help - Parent's finances

I think this is the right prospectus. http://vpx.newriver.com/GetContract1.asp?clientid=nwvpx&fundid=63890A173 The minimum benefit base after ten years is about $170k; 100k + 10 * 7k. It would only go higher when the Contract Value goes above $170k on a contract anniversary. That is not likely to h...
by smitcat
Sat Nov 18, 2017 7:18 am
Forum: Investing - Theory, News & General
Topic: The 4% rule DOES fail but still makes sense!
Replies: 174
Views: 11567

Re: The 4% rule DOES fail but still makes sense!

If retirees truly feared running out of money more than death, then why aren't more buying guaranteed income through vehicles such as SPIAs? They might not guarantee a certain standard of living, but they do guarantee that you'll never run out of money. Why should I believe in the guarantee given b...
by smitcat
Fri Nov 17, 2017 5:10 pm
Forum: Investing - Theory, News & General
Topic: The 4% rule DOES fail but still makes sense!
Replies: 174
Views: 11567

Re: The 4% rule DOES fail but still makes sense!

If retirees truly feared running out of money more than death, then why aren't more buying guaranteed income through vehicles such as SPIAs? They might not guarantee a certain standard of living, but they do guarantee that you'll never run out of money. Why should I believe in the guarantee given b...
by smitcat
Fri Nov 17, 2017 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

There's two debates going on in this topic: used/new and then new financed/new cash. It seems like in the new financed/new cash debate, the new financed option (assuming favorable rate like 0-1%) consumes much more time than walking in and paying cash and being able to negotiate price more. I don't...
by smitcat
Fri Nov 17, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

Probably repeating what others have said so far I like to give the car dealer only one variable to work with during the negotiation phase - the price of the car. If I add financing, that's a variable. So I don't finance. If I add a trade-in, that's another variable. So I sell the old car myself. Yo...
by smitcat
Fri Nov 17, 2017 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Spending Taxable to Zero during Retirement
Replies: 32
Views: 3323

Re: Spending Taxable to Zero during Retirement

We will be generally following the guideline article below and checking/adjusting the details with the RPM calculator as well as IORP.

https://www.kitces.com/blog/tax-efficie ... ing-needs/
by smitcat
Fri Nov 17, 2017 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Retire at FRA of 66, or delay for one year?
Replies: 10
Views: 855

Re: Retire at FRA of 66, or delay for one year?

The largest variable in determining your ability to retire and/or the need to delay are your true expenses.
Since that number is the key to your answer and it does not exist in your post it will be very hard to get good feedback.
by smitcat
Fri Nov 17, 2017 11:29 am
Forum: Personal Consumer Issues
Topic: Suggestions for 1st week vacation in 2018?
Replies: 21
Views: 1258

Re: Suggestions for 1st week vacation in 2018?

Vacation time: 1/1/2018-1/7/2018. (Repeated) So far, almost all suggested places have been visited. Mexico (Cancun), Puerto Rico, Bahamas, Jamaica, DR, Aruba, Costa Rica, Belize, Honduras, St. Martin, Anguilla have been visited. Some people say Cuba may be a gray place to visit since the new admini...
by smitcat
Fri Nov 17, 2017 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Social Security younger Wife
Replies: 15
Views: 1638

Re: Social Security younger Wife

My situation is pretty much identical. Same age difference, I am 65 and wife will be 54 next month and has no earnings history. Your analysis seems pretty much spot-on to me, and I have been researching/pondering this for a number of years. Some time back I also became concerned about the case of m...
by smitcat
Fri Nov 17, 2017 10:50 am
Forum: Investing - Theory, News & General
Topic: Car loans vs. Home loans - Are markets efficient?
Replies: 12
Views: 1049

Re: Car loans vs. Home loans - Are markets efficient?

Several good reasons presented. Maybe another one is that it's easier to repo a car than to foreclose on a house? It's also easier to resell a car than to resell a foreclosed house. Absolutely true Of course, it is hard to move and hide a house from repo. In 2009 and the following 3 + years I watch...
by smitcat
Fri Nov 17, 2017 10:44 am
Forum: Personal Consumer Issues
Topic: Suggestions for 1st week vacation in 2018?
Replies: 21
Views: 1258

Re: Suggestions for 1st week vacation in 2018?

Any suggestions (or other places)? Especially between Grand Cayman and USVG? Jamaica and the DR are the obvious choices both of which offer a lot or variety. The ABC's are more or less in your description as well with a lot less variation at each location. Or a cruise that stops at a few or many of ...
by smitcat
Fri Nov 17, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: Car loans vs. Home loans - Are markets efficient?
Replies: 12
Views: 1049

Re: Car loans vs. Home loans - Are markets efficient?

dspencer wrote:
Thu Nov 16, 2017 3:17 pm
Several good reasons presented. Maybe another one is that it's easier to repo a car than to foreclose on a house? It's also easier to resell a car than to resell a foreclosed house.
Absolutely true
by smitcat
Thu Nov 16, 2017 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Request for Promotion letter to Senior Management
Replies: 155
Views: 12270

Re: Request for Promotion letter to Senior Management

I really like your letter, but I can't gauge how successful it will be. I think the best way to get promoted is to look for an opportunity in a role that is at the level you aspire to be at. You may be a manager now, start looking for Senior Manager roles in and out of your company. Talk to you man...
by smitcat
Thu Nov 16, 2017 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Request for Promotion letter to Senior Management
Replies: 155
Views: 12270

Re: Request for Promotion letter to Senior Management

Separately but related - based upon the frequency and timing of these posts I would hope and suggest that you are not actively posting while at work. If you are at work or on a work network system or machine I would also be highly concerned. Please do not post with or through a work network system w...
by smitcat
Thu Nov 16, 2017 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Request for Promotion letter to Senior Management
Replies: 155
Views: 12270

Re: Request for Promotion letter to Senior Management

I really like your letter, but I can't gauge how successful it will be. I think the best way to get promoted is to look for an opportunity in a role that is at the level you aspire to be at. You may be a manager now, start looking for Senior Manager roles in and out of your company. Talk to you man...
by smitcat
Thu Nov 16, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

"2% discount on the price" FWIW- my cash buy target has been 20% off MSRP or higher over the last 3 transactions. No, not a 2% discount off sticker....a 2% discount off the price we had already agreed to. That price was well below sticker and also below invoice, and was extensively researched for m...
by smitcat
Thu Nov 16, 2017 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

I've made similar arguments before (often to deaf ears) about credit cards. Studies show that people spend less money when they use cash. Invariably people here will claim that their purchases are not influenced by cash or credit, and there's really no easy way to test them individually. It's kind ...
by smitcat
Thu Nov 16, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

We paid cash for our two cars, and I love not having a monthly payment or paying interest. We bought the last car using the Costco "no haggle" price. However, one of our cars is coming up on ten years and we'd like to replace it next year. But we are semi-retired and next year we'll only be 57 so w...
by smitcat
Thu Nov 16, 2017 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Request for Promotion letter to Senior Management
Replies: 155
Views: 12270

Re: Request for Promotion letter to Senior Management

That last reply by the OP demonstrates very clearly to us what his colleagues see on a day to day basis. SMH. Completely oblivious. OP, answer this question as if you were the decision maker. Why would you give an employee who is not a flight risk and has no desire to take on new responsibilities a...
by smitcat
Thu Nov 16, 2017 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

"2% discount on the price" FWIW- my cash buy target has been 20% off MSRP or higher over the last 3 transactions. You can get any quotes you like or do the deal any way you like but at least the MSRP is a 'waterline' that you can use to compare one dealer or vehicle to another. Some manufacturers wi...
by smitcat
Thu Nov 16, 2017 7:17 am
Forum: Personal Consumer Issues
Topic: Looking for a Catamaran
Replies: 21
Views: 1696

Re: Looking for a Catamaran

I am kind of new to boating and am thinking of getting a catamaran because motor boats are too expensive on gas and sail boats are fun but I prefer a more stable boat with larger cabin underneath and wide berth. Any experience by any of my fellow Boggleheads with Catamaran's and can any of you sugg...
by smitcat
Thu Nov 16, 2017 7:03 am
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 14700

Re: Why pay cash for a car?

When negotiating a price, the dealer will take into account whether you are paying cash or financing. You will pay for a below-market finance rate in the sale price of the car. I have not found this to be true at all. These days, I do all my negotiating on-line. The salesman and I settle on an out-...