Search found 5537 matches

by smitcat
Fri May 29, 2020 10:06 am
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 69
Views: 3397

Re: Roth + Time vs Pretax + tax

While individual circumstances matter, unless an investor will have a significant pension in addition to Social Security benefits, it generally works out that most/all of the investor's contributions should be made to tax-deferred accounts if the goal is to maximize after-tax wealth. Isn't it relev...
by smitcat
Fri May 29, 2020 10:04 am
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 69
Views: 3397

Re: Roth + Time vs Pretax + tax

While individual circumstances matter, unless an investor will have a significant pension in addition to Social Security benefits, it generally works out that most/all of the investor's contributions should be made to tax-deferred accounts if the goal is to maximize after-tax wealth. Isn't it relev...
by smitcat
Fri May 29, 2020 10:02 am
Forum: Personal Consumer Issues
Topic: Car Issues - No Oil
Replies: 30
Views: 1430

Re: Car Issues - No Oil

We have a 2006 Volvo S40. It has drunk oil for at least 10 years, so we're always putting oil in it. Well, we're driving a whole lot less in the last 2 months, and it's been 100 degrees, and DH apparently forgot to keep tabs on the oil -- he drove off tonight and the car died after a block (he didn...
by smitcat
Fri May 29, 2020 8:45 am
Forum: Investing - Theory, News & General
Topic: Two accountants disagree - Bogleheads for the tiebreaker
Replies: 42
Views: 1847

Re: Two accountants disagree - Bogleheads for the tiebreaker

Here is the simple scenario: A husband and wife work together (as Realtors,) 100% Commission-based income (1099, schedule C.) They have the option to decide who earns the income on each sale throughout the year. Their former accountant’s strategy was to have the husband take about 75% of the commis...
by smitcat
Fri May 29, 2020 8:23 am
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 69
Views: 3397

Re: Roth + Time vs Pretax + tax

While individual circumstances matter, unless an investor will have a significant pension in addition to Social Security benefits, it generally works out that most/all of the investor's contributions should be made to tax-deferred accounts if the goal is to maximize after-tax wealth. Isn't it relev...
by smitcat
Fri May 29, 2020 7:42 am
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 69
Views: 3397

Re: Roth + Time vs Pretax + tax

While individual circumstances matter, unless an investor will have a significant pension in addition to Social Security benefits, it generally works out that most/all of the investor's contributions should be made to tax-deferred accounts if the goal is to maximize after-tax wealth. Isn't it relev...
by smitcat
Thu May 28, 2020 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

As a side note my mother always said she stayed home because of her kids when asked. Years after the kids had all moved out I asked her why she didn't work and she said that they would pay too much in taxes :oops: I get your point, but all of the added expenses, not just taxes, that come with both ...
by smitcat
Thu May 28, 2020 8:23 am
Forum: Investing - Theory, News & General
Topic: “WHEN YOU'VE WON the game, stop playing with the money you really need.”
Replies: 99
Views: 7508

Re: “WHEN YOU'VE WON the game, stop playing with the money you really need.”

I agree with that Tim wrote, in the sense I’m here mainly to be entertained far more that I am looking for ideas that will improve my portfolio. We are also in the category of having won the game, but we are still working and are 45/49 years old, so we are in no position to get very conservative wi...
by smitcat
Thu May 28, 2020 7:40 am
Forum: Investing - Theory, News & General
Topic: “WHEN YOU'VE WON the game, stop playing with the money you really need.”
Replies: 99
Views: 7508

Re: “WHEN YOU'VE WON the game, stop playing with the money you really need.”

Now if you adhere to the 'need, willingness, and ability' notion of taking on stock risk, then you'd say that the investor with 50x shouldn't own any stocks or at least no more than a small portion of the portfolio. But in my experience, most very wealthy don't appear to agree with that idea at all...
by smitcat
Thu May 28, 2020 7:35 am
Forum: Investing - Theory, News & General
Topic: How Much is a Pension Worth?
Replies: 30
Views: 2864

Re: How Much is a Pension Worth?

Let’s say I’m going to get a $24 k a year pension single life today’s dollars. Is the pension worth $24k / 5.7% = $421k? I’m basing this on a TIAA-CREF accumulation of $421k x current payout for single like of 5.7%. Thanks! I have thought about this also, but the best I found was from a Canadian we...
by smitcat
Thu May 28, 2020 7:30 am
Forum: Personal Consumer Issues
Topic: If Jeep has such poor reliability, how come they are everywhere?
Replies: 155
Views: 11331

Re: If Jeep has such poor reliability, how come they are everywhere?

I provided 4 pieces of verifiable "real data". I'll take that over an anecdotal experience. FWIW note that my original comment was specifically targeted at Grand Cherokee and Compass owners. We'll throw the Renegade in there too, because anyone who would buy one of those, LOL. I have zero issue wit...
by smitcat
Thu May 28, 2020 7:24 am
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

Another vote for wife needs a job. Youngest child is 9 and in school all day, the other two are older. Seriously don't understand all these women with kids in school all day who claim they don't have "time" to work. But again, I'm a woman whose "maternity leave" was all of three hours, I was back o...
by smitcat
Thu May 28, 2020 7:09 am
Forum: Personal Consumer Issues
Topic: If Jeep has such poor reliability, how come they are everywhere?
Replies: 155
Views: 11331

Re: If Jeep has such poor reliability, how come they are everywhere?

I really don't think that's so hard to believe. Sometimes it seems as if people on this forum live in a bubble where they assume everyone else is like them. And by that I mean the average intelligence of people on Bogleheads is certainly well above average, as are their incomes. You likely work wit...
by smitcat
Wed May 27, 2020 9:42 am
Forum: Investing - Theory, News & General
Topic: How Much is a Pension Worth?
Replies: 30
Views: 2864

Re: How Much is a Pension Worth?

You need to assume a number of years you will live and some “discount rate” relevant for that period. I don’t understand where you got 5.7% but that seems a high rate to assume over next 30 years, if a US Tsy 30 bond is under 2%. Discount rate is a risk free rate usually. https://www.treasury.gov/r...
by smitcat
Tue May 26, 2020 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: How Will Corona Virus affect the Real Estate Market ?
Replies: 51
Views: 4903

Re: How Will Corona Virus affect the Real Estate Market ?

Sandtrap wrote:
Fri Mar 13, 2020 9:58 pm
Every day you wait to list your home for sale, is 1 day too late farther down the line.

Ignore the Corona Virus in this matter.

j :happy
I would normally agree with you but it is impossible here now due to the Covid19.
by smitcat
Tue May 26, 2020 11:07 am
Forum: Investing - Theory, News & General
Topic: Statistics on timers in market crashes?
Replies: 103
Views: 5131

Re: Statistics on timers in market crashes?

I know you're not suggesting this, but we cannot ignore the crashes, three of which we've seen in ~20 years now, when formulating our strategies. Those practicing buy-and-hold certainly have to do so when determining their AA. You mean risk adjusted returns right? The 200-day moving average strateg...
by smitcat
Mon May 25, 2020 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

"I've just seen what happens when folks plan for two SS incomes" You just drive them to a simple calculator that implies their total SS will be $20K? I adjusted the SS payment to $72k about 10 posts ago, which is quite optimistic IMO but I was trying to give you the benefit of the doubt. Anyway I g...
by smitcat
Sun May 24, 2020 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

I am about to turn 40 in a year or so. Recently I have become ever more worried about my/our future. I earn about $83,000. My retirement accounts are about $111,000. I am for 67/33 stock and bond approach. We are a family of 5 (3 kids). My partner does not work. I currently save about 8.7% of gross...
by smitcat
Sun May 24, 2020 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

"I've just seen what happens when folks plan for two SS incomes" You just drive them to a simple calculator that implies their total SS will be $20K? I adjusted the SS payment to $72k about 10 posts ago, which is quite optimistic IMO but I was trying to give you the benefit of the doubt. Anyway I g...
by smitcat
Sun May 24, 2020 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

You would need to use inflated dollars for his expenses as well. Michaeljc70 has already matched a reasonable estimate of current dollars for SS to his current expenses. The calculator accounts for this. I estimated that he and his wife will need $50k/year after taxes in today's dollars in retireme...
by smitcat
Sun May 24, 2020 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

Well, the SS calculator here https://www.ssa.gov/OACT/quickcalc/ gives $38k using his age/income and a retirement age of 70. So that is 90% more than what you used. Yes, agreed - that is what I figured as well. But what about his wife and the couples SS total? Wife doesn't work and due to the natur...
by smitcat
Sun May 24, 2020 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

Can you explain this a little further? Well, the SS calculator here https://www.ssa.gov/OACT/quickcalc/ gives $38k using his age/income and a retirement age of 70. So that is 90% more than what you used. You're right, maybe $20k is too conservative. You actually want to use the 'inflated' dollars o...
by smitcat
Sun May 24, 2020 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Selling Boat to people out of State
Replies: 17
Views: 976

Re: Selling Boat to people out of State

Long story short I am selling my 2017 Coach 230 RL Tritoon for $38,500 and that is a really good deal so I am getting alot of people contacting from states nearby. I hold the title free and clear but many people want to pay with a cashiers check from their bank. Is there any reason to be concerned ...
by smitcat
Sun May 24, 2020 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

I think he will get more than $20k SS at age 70. Can you explain this a little further? Well, the SS calculator here https://www.ssa.gov/OACT/quickcalc/ gives $38k using his age/income and a retirement age of 70. So that is 90% more than what you used. Yes, agreed - that is what I figured as well. ...
by smitcat
Sun May 24, 2020 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

I think he will get more than $20k SS at age 70. Can you explain this a little further? I also think a 3% real rate of return is on the low side. For the last 70 years the real return on stocks was around 7%. Even if you have an AA of 50/50 and the bonds return nothing that puts the real rate of re...
by smitcat
Sun May 24, 2020 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

I ran some numbers for you. On your current trajectory, I estimate you'll retire at age 75. Here's a link to the report I generated if you'd like to see the projection in detail. One adjustment you could consider making is increasing your exposure to equities, especially considering your retirement...
by smitcat
Sun May 24, 2020 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

I think he will get more than $20k SS at age 70. Can you explain this a little further? Well, the SS calculator here https://www.ssa.gov/OACT/quickcalc/ gives $38k using his age/income and a retirement age of 70. So that is 90% more than what you used. You're right, maybe $20k is too conservative. ...
by smitcat
Sun May 24, 2020 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

I think he will get more than $20k SS at age 70. Can you explain this a little further? Well, the SS calculator here https://www.ssa.gov/OACT/quickcalc/ gives $38k using his age/income and a retirement age of 70. So that is 90% more than what you used. Yes, agreed - that is what I figured as well. ...
by smitcat
Sun May 24, 2020 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

I ran some numbers for you. On your current trajectory, I estimate you'll retire at age 75. Here's a link to the report I generated if you'd like to see the projection in detail. One adjustment you could consider making is increasing your exposure to equities, especially considering your retirement...
by smitcat
Sun May 24, 2020 8:38 am
Forum: Personal Finance (Not Investing)
Topic: The axe falls and I am prepared. What's next?
Replies: 364
Views: 27420

Re: The axe falls and I am prepared. What's next?

PoppyA wrote:
Sun May 24, 2020 7:54 am
Seems to be a new norm, forced out soon after turning 50.

I have no advice, but wanted to say well done for being prepared!

Best wishes.
Not soon after 50 in this case - 57/58.
by smitcat
Sun May 24, 2020 8:24 am
Forum: Personal Consumer Issues
Topic: If Jeep has such poor reliability, how come they are everywhere?
Replies: 155
Views: 11331

Re: If Jeep has such poor reliability, how come they are everywhere?

It seems that Jeep vehicles are nearly legendary for their poor reliability ratings, and yet I see them everywhere like dandelions. Why are they so popular when they have such a poor reputation? I'm wondering if I should consider buying one. The Grand Cherokee would be my choice. What do Bogleheads...
by smitcat
Sun May 24, 2020 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12037

Re: Approaching 40, worried about financial future

Thanks everyone for your responses. To clarify, we are married. 'traditional' family structure. I was not precise enough in that wording. Kids are 9, 11 and 14. Sensitive topic as to her working. The house we are selling (but still own) is valued at 400k. The house we have bought and where we now l...
by smitcat
Sat May 23, 2020 11:47 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 1406
Views: 190041

Re: Just Paid Off My Mortgage

Never made any sense for us to pay off mortgages until we retired.
by smitcat
Sat May 23, 2020 11:45 am
Forum: Personal Finance (Not Investing)
Topic: House budget advice
Replies: 10
Views: 916

Re: House budget advice

"If you were in my situation, how much would you spend on a home?"
$650-700
"Also, would you be willing to buy a home during this time or would you wait another year to see how things play out with COVID and the economy?"
Yes - we would buy now.
by smitcat
Sat May 23, 2020 9:32 am
Forum: Personal Finance (Not Investing)
Topic: The axe falls and I am prepared. What's next?
Replies: 364
Views: 27420

Re: The axe falls and I am prepared. What's next?

If you have the skills you think you have, you can find a $60k job easy. In your neck of the woods, $100k jobs should be easy. Your attitude of "I only want to work on billion dollar systems" is silly. You're not that special. Million dollar systems take hard work and can present interesting challe...
by smitcat
Sat May 23, 2020 9:26 am
Forum: Personal Finance (Not Investing)
Topic: The axe falls and I am prepared. What's next?
Replies: 364
Views: 27420

Re: The axe falls and I am prepared. What's next?

Folks, I am asking two separate questions: A) Under what financial condition, it is rewarding for me to take on part-time project work. At this moment, it looks like anything less than $90 per hour is not worthwhile. B) Under what non-financial condition, would you go back to work? KlangFool A. Don...
by smitcat
Fri May 22, 2020 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Employer cut 403b contribution to zero
Replies: 85
Views: 5606

Re: Employer cut 403b contribution to zero

Hello Bogleheads. Today, my employer - a research-one university - announced that for the coming fiscal year, there would be no employer contributions to our 403b plans. My contribution has been close to 10k a year. I have maxed my own contributions for the last 14 years. I am 43 and think it very ...
by smitcat
Thu May 21, 2020 11:44 am
Forum: Investing - Theory, News & General
Topic: Efficiency or resiliency in investing, business, personal finance, etc.
Replies: 83
Views: 3513

Re: Efficiency or resiliency in investing, business, personal finance, etc.

I'm quite resilient in my career. I'm a mechanical engineer, having worked in many diverse industries making me easy to hire. I know many foreign languages, which led me to a teaching gig. Learning some coding has also proven useful in many situations. When the teaching opportunities dried up in th...
by smitcat
Thu May 21, 2020 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Employer cut 403b contribution to zero
Replies: 85
Views: 5606

Re: Employer cut 403b contribution to zero

It seems one way we can tell this financial crisis is different than those of the past - tenured professors at major universities are now being impacted. The Univ. of Michigan is projecting a $1,000,000,000 loss. That's Billion with a B. I've often felt like a lot of Bogleheads seem to be governmen...
by smitcat
Wed May 20, 2020 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: How did you determine your target savings rate?
Replies: 109
Views: 4610

Re: How did you determine your target savings rate?

It's weird but we actually have saved more than our 1-year of expense. I cannot figure out what this means or what you are trying to say. Probably means that their amount saved exceeds the amount spent (i.e., savings rate of >50%). Yes , thank you - maybe what you say. They are saving more than one...
by smitcat
Wed May 20, 2020 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: How did you determine your target savings rate?
Replies: 109
Views: 4610

Re: How did you determine your target savings rate?

wander wrote:
Wed May 20, 2020 2:48 pm
It's weird but we actually have saved more than our 1-year of expense.
I cannot figure out what this means or what you are trying to say.
by smitcat
Wed May 20, 2020 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: How did you determine your target savings rate?
Replies: 109
Views: 4610

Re: How did you determine your target savings rate?

Klang, I understand the sentiment of "Pay Yourself First". It's motivated and whatnots. If it works for you, then keep doing what you're doing. I understand why it motivates people. In reality, you don't know how much you save until you close the books for the month. Let's say you make 10k a month....
by smitcat
Wed May 20, 2020 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: How did you determine your target savings rate?
Replies: 109
Views: 4610

Re: How did you determine your target savings rate?

"I tell you what will get you reach the target goal: LBYM. That's it. The more you save, the faster you get to your goal. Simple as that." Balancing the savings rate for the future vs current living is a key. Without living below your means, there's no saving for the future. "Haggling between savin...
by smitcat
Tue May 19, 2020 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: How did you determine your target savings rate?
Replies: 109
Views: 4610

Re: How did you determine your target savings rate?

"I just don't understand the wording that savings rate is not based on income, when it mathematically has to be." Maybe think o fit this way... - the goal of savings is to retire or FI or FIRE or whatever - FIRE requires a multiple of XXX amounts of funds per year (expenses) - the distance between ...
by smitcat
Tue May 19, 2020 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: How did you determine your target savings rate?
Replies: 109
Views: 4610

Re: How did you determine your target savings rate?

Doesn't that imply that you save 50% of your income? rbaldini, What is income? Gross? Net? In my formula, Gross income = Taxes + Savings + Annual Expense. Savings = Gross Income - Taxes - Anuual Expenses. KlangFool I still can't make sense of this. Suppose my income is 100k, taxes are 25k, and expe...
by smitcat
Tue May 19, 2020 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: How did you determine your target savings rate?
Replies: 109
Views: 4610

Re: How did you determine your target savings rate?

OP, 1) I determined my saving rate based on my annual expense. Not on income. 2) I save 1 year of my current annual expense every year. KlangFool Doesn't that imply that you save 50% of your income? rbaldini, What is income? Gross? Net? In my formula, Gross income = Taxes + Savings + Annual Expense...
by smitcat
Tue May 19, 2020 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: SS claiming strategy when younger spouse is higher earner
Replies: 12
Views: 729

Re: SS claiming strategy when younger spouse is higher earner

Any bh's care to advise on when best to claim ss when the younger spouse is the higher earner? So let's say DH is 5 years older than DW and she is the higher earner and these are the estimates from SSA: DH: @62 yo: 1,600 @FRA 2,400 @70 yo: 2,900 DW: @62yo: 2,200 @FRA 2,900 @70 yo: 3,700 Estimated t...
by smitcat
Tue May 19, 2020 4:57 pm
Forum: Investing - Theory, News & General
Topic: Formula for % of Income?
Replies: 14
Views: 1519

Re: Formula for % of Income?

At 67 years of age your income will exceed your needed/wanted budget of $55K by $12.2K per year until one SS is no longer available. Thanks! The $55k living expenses and discretionary spending is in today’s dollars. Won’t the $55k be more 14 years from now when we retire? Like currently our living ...
by smitcat
Tue May 19, 2020 1:24 pm
Forum: Investing - Theory, News & General
Topic: Formula for % of Income?
Replies: 14
Views: 1519

Re: Formula for % of Income?

Thanks for your questions to help me get a handle on this! Perhaps a few thoughts on your overall position and goals.... - Do you have a goal for the amount of income you desire in retirement? Yes in today’s dollars $55k which includes discretionary spending not including federal taxes. We live PA ...
by smitcat
Tue May 19, 2020 11:43 am
Forum: Investing - Theory, News & General
Topic: Formula for % of Income?
Replies: 14
Views: 1519

Re: Formula for % of Income?

I have $155k in my retirement account after 23 years saving 14% of salary / including 9% employer match adding 2% a year. I currently make $55k. ... I always expected a 3.5% return on a 50/50 allocation. 23 years ago my salary was $33k. Back-of-the-envelope calculation using the formula for the Fut...