Search found 13163 matches

by smitcat
Mon Mar 18, 2024 6:21 pm
Forum: Personal Investments
Topic: How Much to Convert to Roth?
Replies: 11
Views: 867

Re: How Much to Convert to Roth?

"The goal is tax efficiency during their life time and if possible, leave money in Roth/after tax account for their heirs. I understand that there are many uncertainties for the future. Any insight and recommendation would be greatly appreciated. Are there any (free or inexpensive) tools (model/program) that can provide some high-level guidance for this purpose?" RPM is a good tool fore this - free and is very transparent. Pralana is a really good tool for this - $100 and is less transparent but has auto optmization 'buttons' which may be very valuable to some folks. They both take a significant amount of time to setup/run/review and understand. RPM has a thread on this site for support - Pralana has support on that site. We run b...
by smitcat
Mon Mar 18, 2024 6:09 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4079

Re: Which industry will benefit from new real estate commission fee structure?

madbrain wrote: Mon Mar 18, 2024 6:05 pm
smitcat wrote: Mon Mar 18, 2024 6:02 pm Only if the buyer comes thru someone else - if they don't then you are AOK.
Even if they do, it may not necessarily the seller's responsibility to pay the commission with the new ruling.
Buyer could pay their agent out of their own pocket, or finance it into the mortgage, if the property appraises high enough, ie. higher than the sales price agreed to by the seller. It does pose a problem if the property doesn't appraise at 100% + commission.
If anyone is signing with an agent they owe a commision.
If you buy or sell without an agent involved at all and go it alone you owe nothing.
by smitcat
Mon Mar 18, 2024 6:02 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4079

Re: Which industry will benefit from new real estate commission fee structure?

Or use a flat fee or low commission broker to get your property on the MLS. Commissions have already been negotiable. There are listing agents who will list properties for less than the "standard" 6 percent. Just don't expect the same level of service and advice on either end of the transaction. Yes - of course. You can FSBO a home, car, boat, business, etc. Or you can hire on brokers to do the same thing. Once you have done both you may or may not decide to engage a broker in the future. In my business I owned for 23 years I worked with many realtors because I provided a service they used to get homes ready for sale. I have also bought and sold 7 homes so I know a little bit about what realtors do. I will say it again and it is ...
by smitcat
Mon Mar 18, 2024 5:59 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4079

Re: Which industry will benefit from new real estate commission fee structure?

Or use a flat fee or low commission broker to get your property on the MLS. Commissions have already been negotiable. There are listing agents who will list properties for less than the "standard" 6 percent. Just don't expect the same level of service and advice on either end of the transaction. Yes - of course. You can FSBO a home, car, boat, business, etc. Or you can hire on brokers to do the same thing. Once you have done both you may or may not decide to engage a broker in the future. In my business I owned for 23 years I worked with many realtors because I provided a service they used to get homes ready for sale. I have also bought and sold 7 homes so I know a little bit about what realtors do. I will say it again and it is ...
by smitcat
Mon Mar 18, 2024 12:19 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11143

Re: Can I retire with $1.75M at age 43?

The short answer is yes, if your expenses are currently in the 3K per month range and stay that way adjusted for inflation, then 1.75MM liquid assets will work just fine. This is standard FIRE/leanFIRE. To those saying no, I'd point out this is similar to someone with 5MM liquid and 10K per month expenses- which everyone would say 'go ahead and retire' all day long. No, it isn't really similar to that at all because the person currently spending $120k a year has a lot more room to lean out if the plan heads south than someone already living off of a very small level of expense. That's really the point all those people are making - he has little room for error on the downside when choosing a 40-60 year retirement at minimal expenses (relyin...
by smitcat
Mon Mar 18, 2024 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 221
Views: 22389

Re: Age and probability of needing long term care?

If it helps, here is how I decided. Obviously it isn’t medical insurance, it’s for folks who need help with bathing, dressing, eating and standing up and who need verbal cues to do essential functions. 1. The general rule is if you know for sure (how can anyone?) that you can self fund, or if you can’t afford the premiums, don’t get it. I fall in the big middle group with assets to protect from long term care costs but not enough to self fund. 2. People who have serious chronic diseases and pass in their 60s, which is unfortunately a lot of people, probably don’t need it, which is why the marketing statistics mention people over 65. Lots of the biggest diseases get you before 65. 3. So who needs LTCI? *Healthy people* who have longevity in...
by smitcat
Mon Mar 18, 2024 12:04 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4079

Re: Which industry will benefit from new real estate commission fee structure?

"If I put our home for sale in California for say 1.2 M it would sell in one weekend." Just do a FSBO then. Or use a flat fee or low commission broker to get your property on the MLS. Commissions have already been negotiable. There are listing agents who will list properties for less than the "standard" 6 percent. Just don't expect the same level of service and advice on either end of the transaction. Yes - of course. You can FSBO a home, car, boat, business, etc. Or you can hire on brokers to do the same thing. Once you have done both you may or may not decide to engage a broker in the future. In my business I owned for 23 years I worked with many realtors because I provided a service they used to get homes ready for s...
by smitcat
Mon Mar 18, 2024 8:21 am
Forum: Investing - Theory, News & General
Topic: New insights on safe and perpetual withdrawal rates
Replies: 59
Views: 5974

Re: New insights on safe and perpetual withdrawal rates

I'm a novice when it comes to withdrawal rates. The information above seems to make a lot of sense though. My question is, are the withdrawal rates suggested by the above link something we can actually use moving forward? The perpetual withdrawal rate recommendation of 3.4% for a 60/40 portfolio sounds appealing, although it seems higher than the recommendations of 2.75-3% I read about here frequently. Would anyone here be comfortable drawing down 3.4% with a retirement in their late 40's or early 50's? 3.4% pretty much matches BigERN's analysis too for long retirements: https://earlyretirementnow.com/safe-withdrawal-rate-series/ Nobody needs <3% unless they're aiming to leave a large legacy or fully believe we'll have worse than the worst...
by smitcat
Mon Mar 18, 2024 8:02 am
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11143

Re: Can I retire with $1.75M at age 43?

"With exception of poor gene,I am in a same boat as you about the job. I want to quit so many times and even switch offices a few times someone ended up back where I started. I am only staying in for the full pension, which is to be 35% or more of my salary. The work is rewarding and the current management is actual good but I am surrounded by mouth breathing white collar welfare recipients making 6-figure doing less than nothing. I should be working for myself instead of babysitting them at detriment to my sanity and my own work and personal finance." As someone who worked through a similar situation, maybe I politely suggest you both need some counseling and mindfulness training. It's silly to let coworkers ruin an otherwise fi...
by smitcat
Mon Mar 18, 2024 7:56 am
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4079

Re: Which industry will benefit from new real estate commission fee structure?

deanbrew wrote: Mon Mar 18, 2024 7:54 am
smitcat wrote: Mon Mar 18, 2024 7:45 am

"If I put our home for sale in California for say 1.2 M it would sell in one weekend."
Just do a FSBO then.
Or use a flat fee or low commission broker to get your property on the MLS. Commissions have already been negotiable. There are listing agents who will list properties for less than the "standard" 6 percent. Just don't expect the same level of service and advice on either end of the transaction.
Yes - of course.
You can FSBO a home, car, boat, business, etc. Or you can hire on brokers to do the same thing. Once you have done both you may or may not decide to engage a broker in the future.
by smitcat
Mon Mar 18, 2024 7:53 am
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 120
Views: 11113

Re: The best game-changing financial advice you ever received (or "discovered")

Tundrama wrote: Mon Mar 18, 2024 7:38 am
murrays wrote: Sat Mar 16, 2024 11:35 am "Money can't buy happiness, but overspending can buy stress"

Learning about time value of money in several courses in college.
Exactly!

For us, debt is absolutely gross. We hate it. If we go to the post office and receive a medical copayment of any amount, it gets paid before our heads hit the pillows.

A bunch of money will never make you happy. …and no, I’m not that broke dude saying this.

Debt however, will make you incredibly sad and stressed, and at times, physically ill. Debt is not a welcome visitor in our family.
Debt is merely a tool which can be used well or poorly.
by smitcat
Mon Mar 18, 2024 7:45 am
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4079

Re: Which industry will benefit from new real estate commission fee structure?

hoops777 wrote: Sun Mar 17, 2024 9:31 pm If I put our home for sale in California for say 1.2 M it would sell in one weekend.
Why should anyone pay 60 or 70,000 for that?
It is ridiculous.

Now if you are selling a home for 250,000 and is on the market for months and months, the amount of time and work is totally different and the commission much smaller.

This has always been the problem in my opinion.
"If I put our home for sale in California for say 1.2 M it would sell in one weekend."
Just do a FSBO then.
by smitcat
Mon Mar 18, 2024 7:41 am
Forum: Investing - Theory, News & General
Topic: New insights on safe and perpetual withdrawal rates
Replies: 59
Views: 5974

Re: New insights on safe and perpetual withdrawal rates

I'm a novice when it comes to withdrawal rates. The information above seems to make a lot of sense though. My question is, are the withdrawal rates suggested by the above link something we can actually use moving forward? The perpetual withdrawal rate recommendation of 3.4% for a 60/40 portfolio sounds appealing, although it seems higher than the recommendations of 2.75-3% I read about here frequently. Would anyone here be comfortable drawing down 3.4% with a retirement in their late 40's or early 50's? 3.4% pretty much matches BigERN's analysis too for long retirements: https://earlyretirementnow.com/safe-withdrawal-rate-series/ Nobody needs <3% unless they're aiming to leave a large legacy or fully believe we'll have worse than the worst...
by smitcat
Sun Mar 17, 2024 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: How much long term care might you need?
Replies: 31
Views: 2266

Re: How much long term care might you need?

iim7V7IM7 wrote: Sun Mar 17, 2024 1:06 pm I meant are the LTCi payments fixed and/or known for the future with or without any increases above the disclosed amounts?
That would allow the math to be more accurate.


I assume that LTCI payments over the long term will increase with all by insurance by 3% a year and it is part of our essential expense estimate. I don’t expect them to increase every year, but 2 to 4 times across our retirement they petition the State and get an increase approved. Do I think that it will be as bad as it was for my Mother? No, because I think the actuarial basis underpinning our policy is more sound.
Thank you
Sounds very much like all of your pieces are well thought out and fit your needs - I wish you well and hope you never need the insurance.
by smitcat
Sun Mar 17, 2024 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: How much long term care might you need?
Replies: 31
Views: 2266

Re: How much long term care might you need?

“Do you have known fixed future payments which allow you to do the math?” Well, like any plan, we have estimates that need to be constantly revisited across retirement. Delaying Social Security: We have assigned assets to fund essential expenses during the delay of my wife’s Social Security by 1-year and mine for 4-years. Essential Expenses: We both have Social Security benefits and I have a nominal company pension that once Social Security fully turns on, looks to cover our essential expenses. But because of a higher assumed personal inflation rate and a low Social Security COLA assumption, we will need additional income starting in our mid 70s and beyond. We have invested assets that can be used to buy SPIAs as needed as we age. I prefer...
by smitcat
Sun Mar 17, 2024 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Reevaluating social security
Replies: 49
Views: 4183

Re: Reevaluating social security

It's a very well respected and well tested site, maybe you should learn about it more. Assuming that's true, something being popular doesn't sway me (in either direction) for my opinion on anything. And it's a pretty simple site with simple input/calculations; I quickly learned about all there was to learn. For examples of why I couldn't put much stock in it, I changed various parameters by checking the box at the top and it didn't change my results at all. This includes saying I was still working and entering monthly earnings ranging from $10/mo to $10,000,000/mo. Again, didn't change the results, so I have to question "well tested." To each their own though. I found the same thing. I put in an estimated income for myself and I ...
by smitcat
Sun Mar 17, 2024 11:39 am
Forum: Personal Finance (Not Investing)
Topic: How much long term care might you need?
Replies: 31
Views: 2266

Re: How much long term care might you need?

Yeah, hard pass. If I get to that point, I'll let the money I have cover it as much as it can and go broke after that and let the govt take over. LTC insurance last I saw was incredibly expensive. We have not priced this in years and therfore do not know the current rates. What are the more recent prices, amounts, and terms? I can provide one reference point, for a couple age 61 and 62 in 2022 in good health: - A Partnership Policy that protects assets paid from Medicaid income limits - 180 day Elimination Period (shortening to 90-days raises price significantly) - Max Daily Benefit in 2022 $200/Day - 2 x 3-Year Benefit Periods + 1 x 3-Year Shared Benefit Period - 3%/Year compounded inflation rider Policy cost = $6,352/Year For contrast if...
by smitcat
Sun Mar 17, 2024 9:55 am
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4079

Re: Which industry will benefit from new real estate commission fee structure?

Unlike some people, I don't see this change saving people money overall. It will likely add complexity for both sellers and buyers, and shift many payments from the seller side to the buyer side. I think it will end up hurting inexperienced home buyers, adding costs and decisions. I expect that listing agents will begin to market their services in tiers, adding either percentages or flat fees for pictures, videos, advertising, open houses, extra months on the market, etc. Home buyers, especially inexperienced ones, will have to negotiate with buyer agents to educate them, show houses, negotiate offers, etc. I guess both listing and buying agents will start to offer their services in cost tiers or by the hour. Another factor is that sellers...
by smitcat
Sun Mar 17, 2024 9:37 am
Forum: Personal Finance (Not Investing)
Topic: How much long term care might you need?
Replies: 31
Views: 2266

Re: How much long term care might you need?

Yeah, hard pass. If I get to that point, I'll let the money I have cover it as much as it can and go broke after that and let the govt take over. LTC insurance last I saw was incredibly expensive. We have not priced this in years and therfore do not know the current rates. What are the more recent prices, amounts, and terms? I can provide one reference point, for a couple age 61 and 62 in 2022 in good health: - A Partnership Policy that protects assets paid from Medicaid income limits - 180 day Elimination Period (shortening to 90-days raises price significantly) - Max Daily Benefit in 2022 $200/Day - 2 x 3-Year Benefit Periods + 1 x 3-Year Shared Benefit Period - 3%/Year compounded inflation rider Policy cost = $6,352/Year For contrast if...
by smitcat
Sun Mar 17, 2024 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Reevaluating social security
Replies: 49
Views: 4183

Re: Reevaluating social security

It's a very well respected and well tested site, maybe you should learn about it more. Assuming that's true, something being popular doesn't sway me (in either direction) for my opinion on anything. And it's a pretty simple site with simple input/calculations; I quickly learned about all there was to learn. For examples of why I couldn't put much stock in it, I changed various parameters by checking the box at the top and it didn't change my results at all. This includes saying I was still working and entering monthly earnings ranging from $10/mo to $10,000,000/mo. Again, didn't change the results, so I have to question "well tested." To each their own though. I found the same thing. I put in an estimated income for myself and I ...
by smitcat
Sun Mar 17, 2024 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Analyze my Social Security payout
Replies: 9
Views: 900

Re: Analyze my Social Security payout

Allan wrote: Sun Mar 17, 2024 9:03 am
smitcat wrote: Sun Mar 17, 2024 8:50 am No - how and where are you getting these numbers?
Do you know your PIA?
Have you tried using the calculator by Nuerosphere? (it is excellent)
I used the calculator you are referring to 5-6 years ago, but have created a spreadsheet myself showing my actual wages and wages with the inflation factor. my PIA is $3,118, not counting the 8% a year for waiting until age 70.
Perhaps the first step is to return to Neuorsphere's calculator and rerun your new numbers.
His tool is very easy to use and has been confirmed accurate by many Bogle's including us.
by smitcat
Sun Mar 17, 2024 8:59 am
Forum: Personal Finance (Not Investing)
Topic: How much long term care might you need?
Replies: 31
Views: 2266

Re: How much long term care might you need?

gunny2 wrote: Sun Mar 17, 2024 1:20 am Yeah, hard pass. If I get to that point, I'll let the money I have cover it as much as it can and go broke after that and let the govt take over. LTC insurance last I saw was incredibly expensive.
We have not priced this in years and therfore do not know the current rates.
What are the more recent prices, amounts, and terms?
by smitcat
Sun Mar 17, 2024 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Analyze my Social Security payout
Replies: 9
Views: 900

Re: Analyze my Social Security payout

No - how and where are you getting these numbers?
Do you know your PIA?
Have you tried using the calculator by Nuerosphere? (it is excellent)
by smitcat
Sat Mar 16, 2024 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance

Yes, they are denied. And you are incredibly disrespectful to make that statement about my family members. You have no idea what your talking about. They went through hell with medical challenges and then the LTC insurance companies added massive insult to injury. And no, I’m not going to share private matters with you so that you can try and defend the abominable. I am sorry if you have had a loss, we had been thru 3 of these in a row a while back. It is really indescribeable if you have not been thru one yourself. In our experience the insurance was not denied. If you do not choose to share detials it will be impossible to try and add any helpful feedback. If you do not choose to share details please seek out legal counsel for you potent...
by smitcat
Sat Mar 16, 2024 1:35 pm
Forum: Personal Consumer Issues
Topic: Moving in retirement.
Replies: 25
Views: 2785

Re: Moving in retirement.

"For those that moved after retirement, why?"
The new location suplied us with the things we were seeking.

"Was it tough to leave behind things you had built and dreamed about?"
5% yes - 95% no

"What features are of value in new homes, community, area?"
This is a personal shopping list question and will be different for everyone.
by smitcat
Sat Mar 16, 2024 1:29 pm
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 163
Views: 15077

Re: Great news! No more [fixed real estate] agent commission

trustquestioner wrote: Sat Mar 16, 2024 1:23 pm I don’t buy the argument that sellers will keep paying extortion money to buyers agents fearing those agents will steer clients away from sellers that don’t pay the protection racket fee.

Everyone in my generation and younger (millennial) sees the house they want to see on Zillow then tells their agent to set up a showing. They are going to go see it no matter what their agent says, if they even have one. Which, they probably won’t.
In that case then just negotiate the home price down as you see fit.
by smitcat
Sat Mar 16, 2024 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance

No, private pay means Medicare doesn’t cover it and the patient isn’t on Medicaid. LTCI should cover a portion of it. I am not in this field but have been learning about it because a relative is using one. Costs range depending on your area, the company, whether they are licensed or only bonded and insured, whether they are providing “health aide services” or merely “companionship,” and whether you need part time or round the clock care. At the ultra high end there are live in registered nurses. Based on my recent informal survey of the market in my VHCOLA, you can look at $300 day on the low end, for round the clock, a lot in the $460-650/day range up to $1000/ day, and that’s just for aides, who may or may not drive and who are forbidden...
by smitcat
Sat Mar 16, 2024 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance

I always thought that when the time came, my parents would simply opt for a nursing home. As commenters above indicated, it’s impossible to understand what awaits you before you go through it. 1. They may not want to be in a nursing home and may intentionally or unintentionally sabotage their “assessment” visits at such homes as assisted living. 2. There may be a wait list for the nursing homes that are nicest and most convenient. 3. If eligible for a memory care unit, the presence of other patients in distress and unfamiliar surroundings might make it clinically not the best option compared to living at home. 4. If someone is eligible for memory care, their home may need a lot of work before an agency will allow an aide to move in - if th...
by smitcat
Sat Mar 16, 2024 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance

My uncle. My grandparents. You’re welcome. Is your assertion that legitimate claims are not denied? Legitimate claims are not denied. Can you provide details about your uncle's and grandparents claim denials? What reason was given by the insurance company for the claim denial? Yes, they are denied. And you are incredibly disrespectful to make that statement about my family members. You have no idea what your talking about. They went through hell with medical challenges and then the LTC insurance companies added massive insult to injury. And no, I’m not going to share private matters with you so that you can try and defend the abominable. I am sorry if you have had a loss, we had been thru 3 of these in a row a while back. It is really inde...
by smitcat
Sat Mar 16, 2024 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7244

Re: Letter to heir - what would you include?

Honestly if it were not an issue where a loved one was involved I would not spend too much time on it. Impersonal and not nearly as important to optimize. Even disregarding any emotional aspects, remember this is the same person (and the same letter) that would be involved when you're still alive and needing her to make financial and any other required decisions for you, so it might be wise to make life as "optimized" as possible for her, with the hope she'll make life as "optimized" as possible for you. To me as I read this here.... "No kids, no family; the letter is for the one person designated for all the typical estate planning purposes: PoA, healthcare decisions, executor, beneficiary." It means a hired ...
by smitcat
Sat Mar 16, 2024 9:06 am
Forum: Personal Consumer Issues
Topic: Termite Quotes & Repair vs Damage warranty
Replies: 33
Views: 1888

Re: Termite Quotes & Repair vs Damage warranty

Hey y'all first I wanted to say thank you for all the replies, it has given me a lot to think about. I also wanted go apologize for some confusion in my initial post and follow up, I don't think I did a good job of being clear. I will blame it on posting too close to bed time. Few quick comments on what I have read so far and will try to reply to. 1. The home was a new construction build we bought early last year, with the bait stations installed by the pest control company. Thinking now, I don't there is any risk with identifying the company. It is Home Team Pest Defense. At the end of January/Beginning of February of this year, a tech came out and performed a check of the bait stations. I was unavailable at the time to watch and discuss ...
by smitcat
Sat Mar 16, 2024 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7244

Re: Letter to heir - what would you include?

I have assets that are worth *significant* money but could be discarded or sold for pennies if the executor doesn't know better. So my letter to the executor enumerates these assets and includes recommendations on how to deal with them. I also name SMEs who I trust (if they outlive me!)... No directives, just my advice on how I would deal with the assets if I was doing it. Also, some assets have paperwork that must be filed to liquidate and I included already filled out paperwork with post-it flags on fields that will need to be completed. What's an SME? Subject matter expert Thanks. My search yielded things like "Society of Manufacturing Engineers," "Small and Medium Enterprises," etc. Yes mine as well - I have been do...
by smitcat
Sat Mar 16, 2024 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 221
Views: 22389

Re: Age and probability of needing long term care?

"So here is what I get for the "absolute values" from the data above;" 52% of people 65+ will need some LTC 25% of people 65+ will need LTC for less than 1 year 10% of people 65+ will need LTC for 1 to 2 years 11% of people 65+ will need LTC for 2 to 5 years 7% of people 65+ will need LTC for 5 or more years Now this is math that I do understand. Thank you for simplifying. The real math is binary. It's either yes or no. The most important question is "in which cohort will you be?" But, since you can't know that, let's look at each cohort: If you're in the 5 or more years cohort, a well-designed LTCi policy (purchased at a young age) would have been a smart choice. If you're in the 2 to 5 years cohort, a well-d...
by smitcat
Sat Mar 16, 2024 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7244

Re: Letter to heir - what would you include?

samsoes wrote: Sat Mar 16, 2024 8:44 am
brcarls wrote: Thu Mar 14, 2024 9:24 am I have assets that are worth *significant* money but could be discarded or sold for pennies if the executor doesn't know better.

So my letter to the executor enumerates these assets and includes recommendations on how to deal with them. I also name SMEs who I trust (if they outlive me!)... No directives, just my advice on how I would deal with the assets if I was doing it.

Also, some assets have paperwork that must be filed to liquidate and I included already filled out paperwork with post-it flags on fields that will need to be completed.
What's an SME?
Subject matter expert
by smitcat
Sat Mar 16, 2024 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance

Yea, and more than that in legitimate claims denied while insurance salespeople/agents line their pockets and take advantage of the suffering of decent people. Can you please share an example of legitimate LTC insurance claims being denied? My uncle. My grandparents. You’re welcome. Is your assertion that legitimate claims are not denied? Legitimate claims are not denied. Can you provide details about your uncle's and grandparents claim denials? What reason was given by the insurance company for the claim denial? Yes, they are denied. And you are incredibly disrespectful to make that statement about my family members. You have no idea what your talking about. They went through hell with medical challenges and then the LTC insurance compani...
by smitcat
Sat Mar 16, 2024 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7244

Re: Letter to heir - what would you include?

Honestly if it were not an issue where a loved one was involved I would not spend too much time on it. Impersonal and not nearly as important to optimize. Even disregarding any emotional aspects, remember this is the same person (and the same letter) that would be involved when you're still alive and needing her to make financial and any other required decisions for you, so it might be wise to make life as "optimized" as possible for her, with the hope she'll make life as "optimized" as possible for you. To me as I read this here.... "No kids, no family; the letter is for the one person designated for all the typical estate planning purposes: PoA, healthcare decisions, executor, beneficiary." It means a hired ...
by smitcat
Fri Mar 15, 2024 6:09 pm
Forum: Personal Investments
Topic: Do I need to do anymore Roth conversions?
Replies: 14
Views: 1503

Re: Do I need to do anymore Roth conversions?

Mullins wrote: Fri Mar 15, 2024 4:36 pm
carolinaman wrote: Fri Mar 15, 2024 1:58 pm Second, provide a tax free inheritance for our kids and grandkids. They will also inherit sizeable taxable funds.
I suppose if you're willing to take the tax hit so your children aren't hit as hard by the taxman then yes, more conversions.
Have you calculated just how much in taxes would be saved going forward over the rest if your anticipated lifespans if you were to do further conversions?
Good thoughts.

So I think the question may come down to - do you have enough in the Roth now for your targeted giving to heirs?
If yes - then no conversions and continued larger charitable.
If no - then do conversions.
by smitcat
Fri Mar 15, 2024 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7244

Re: Letter to heir - what would you include?

No kids, no family; the letter is for the one person designated for all the typical estate planning purposes: PoA, healthcare decisions, executor, beneficiary. That doesn't affect the discussion/debate over the need for an instruction letter though. It would change our 'book' a bit for sure. What would change? Well, let's say vs. having one child for a better comparison. I can see there not being any mention of disposing of sentimental things since in my case there won't be any, but I'm thinking more in terms of the nuts-and-bolts aspects. Not given it much thought but if this was for a liquidator I think the list of changes would be quite - there would be no significant reason to make transitions easier for an emotional time period, no on...
by smitcat
Fri Mar 15, 2024 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance

No, private pay means Medicare doesn’t cover it and the patient isn’t on Medicaid. LTCI should cover a portion of it. I am not in this field but have been learning about it because a relative is using one. Costs range depending on your area, the company, whether they are licensed or only bonded and insured, whether they are providing “health aide services” or merely “companionship,” and whether you need part time or round the clock care. At the ultra high end there are live in registered nurses. Based on my recent informal survey of the market in my VHCOLA, you can look at $300 day on the low end, for round the clock, a lot in the $460-650/day range up to $1000/ day, and that’s just for aides, who may or may not drive and who are forbidden...
by smitcat
Fri Mar 15, 2024 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance john hancock

I would love any suggestions or help anyone has. thank you Ginny The hardest part about a long-term care insurance claim is that it’s brand new for everyone. Even though over one million people have received benefits from their long-term care policies, most of us have never filed a long-term care insurance claim. Your doctor has lots of experience filing medical insurance claims, but little or no experience filing long-term care insurance claims. Who do you turn to for help? And the language in long-term care insurance policies is foreign to most people. Most people don't know the difference between a certification period and an elimination period OR a qualified caregiver OR skilled care vs intermediate care vs custodial care OR formal car...
by smitcat
Fri Mar 15, 2024 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance john hancock

I would love any suggestions or help anyone has. thank you Ginny The hardest part about a long-term care insurance claim is that it’s brand new for everyone. Even though over one million people have received benefits from their long-term care policies, most of us have never filed a long-term care insurance claim. Your doctor has lots of experience filing medical insurance claims, but little or no experience filing long-term care insurance claims. Who do you turn to for help? And the language in long-term care insurance policies is foreign to most people. Most people don't know the difference between a certification period and an elimination period OR a qualified caregiver OR skilled care vs intermediate care vs custodial care OR formal car...
by smitcat
Fri Mar 15, 2024 3:53 pm
Forum: Personal Investments
Topic: Do I need to do anymore Roth conversions?
Replies: 14
Views: 1503

Re: Do I need to do anymore Roth conversions?

Yes agreed - you need to have somewhat of a goal for the funds before you try and optimize that goal. Having the two goals of charity and also inheritance for heirs is not a poroblem but they need to be assigned a relative value or maybe a % to figure out an optimized approach. My primary goal was to reduce my TIRA balance to avoid taxes, especially with expiration of the TCJA in 2026. Is your tax-deferred account now low enough to achieve this goal? If not, can you achieve it using QCDs? If the answer to one of those is yes, I don't see the need to do any more Roth conversions unless you just have a desire to have only Roth IRA. I also see some value in keeping some money in tIRA to use for LTC/medical expenses. For example, if you decide...
by smitcat
Fri Mar 15, 2024 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 40703

Re: Long Term Care Insurance john hancock

I would love any suggestions or help anyone has. thank you Ginny The hardest part about a long-term care insurance claim is that it’s brand new for everyone. Even though over one million people have received benefits from their long-term care policies, most of us have never filed a long-term care insurance claim. Your doctor has lots of experience filing medical insurance claims, but little or no experience filing long-term care insurance claims. Who do you turn to for help? And the language in long-term care insurance policies is foreign to most people. Most people don't know the difference between a certification period and an elimination period OR a qualified caregiver OR skilled care vs intermediate care vs custodial care OR formal car...
by smitcat
Fri Mar 15, 2024 3:37 pm
Forum: Personal Investments
Topic: Do I need to do anymore Roth conversions?
Replies: 14
Views: 1503

Re: Do I need to do anymore Roth conversions?

In your situation, Roth conversions to benefit your children as heirs seems inconsistent with your desire to contribute more than your RMD amount to charity. If you plan to continue to make QCDs in excess of your current RMDs, I don't think it would make sense to lower your RMDs even further by a Roth conversion. Yes agreed - you need to have somewhat of a goal for the funds before you try and optimize that goal. Having the two goals of charity and also inheritance for heirs is not a poroblem but they need to be assigned a relative value or maybe a % to figure out an optimized approach. My primary goal was to reduce my TIRA balance to avoid taxes, especially with expiration of the TCJA in 2026. Is your tax-deferred account now low enough t...
by smitcat
Fri Mar 15, 2024 3:34 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15189

Re: 5M, probably enough to retire to a frugal lifestyle

Probably a much bigger, newer, nicer home. And next to a beautiful lake with a view from your deck. And a boat and a couple of jetskis. Or you could live in a much smaller older home in CA and complain about how you are forced to be "frugal" with "only" $5 million. I was very interested in why KlanFool had lived in a lower cost area and a smaller townhome - and how that coincides with the quote in his post on this thread. He has posted many times that he would stop working when he had 25X and/or enough - often saying 'why work for free'. Now approaching an 'infinate' amount of savings (SS will cover everything) he continues to work for some unknown and unstated reason. This behaviour does not agree with either the post ...
by smitcat
Fri Mar 15, 2024 11:44 am
Forum: Personal Finance (Not Investing)
Topic: How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?
Replies: 58
Views: 4246

Re: How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?

Jack FFR1846 wrote: Fri Mar 15, 2024 11:43 am Simple and easy and requires no complicated legal stuff.

Give each niece and nephew $15k NOW.

In your will, leave to each other and when both of you are gone, 100% goes to the charity you want to support.

Easy
Really great idea ....
by smitcat
Fri Mar 15, 2024 11:41 am
Forum: Personal Finance (Not Investing)
Topic: moving from ~600k to ~1.5M income
Replies: 74
Views: 11762

Re: moving from ~600k to ~1.5M income

TomatoTomahto wrote: Fri Mar 15, 2024 11:21 am
smitcat wrote: Fri Mar 15, 2024 11:01 am
"I was reviewing this recently and realized I've doubled my income 9 times since I started working."
That is amazing - if you started out with weekly earnings of $200 they would be $102,400 now.
Yearly that woudl be going from $10,000 per year to $5,324,800 per year.
That’s the chessboard with one grain of wheat in the first square, 2 in the second, 4 in the third …
Is that not what doubling 9 times means?
Or do I have the thought and math all wrong?
by smitcat
Fri Mar 15, 2024 11:12 am
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15189

Re: 5M, probably enough to retire to a frugal lifestyle

It is a luxury to live in one of the highest cost of living area. Some folks choose it. KlangFool What was the purpose of living in a lower cost area in a smaller footprint home? Probably a much bigger, newer, nicer home. And next to a beautiful lake with a view from your deck. And a boat and a couple of jetskis. Or you could live in a much smaller older home in CA and complain about how you are forced to be "frugal" with "only" $5 million. I was very interested in why KlanFool had lived in a lower cost area and a smaller townhome - and how that coincides with the quote in his post on this thread. He has posted many times that he would stop working when he had 25X and/or enough - often saying 'why work for free'. Now ap...
by smitcat
Fri Mar 15, 2024 11:04 am
Forum: Personal Consumer Issues
Topic: Extra Low Mileage Drivers: How much do you spend on your car?
Replies: 48
Views: 4199

Re: Extra Low Mileage Drivers: How much do you spend on your car?

Interesting thread. I go back and forth on replacing my 2008 RAV4. I only drive 2,500 miles a year. I like some of the newer models but not keen on having my car turn me in to my insurance company. Also need to see if economics of hybrid vs. all-gas make sense at this mileage - probably not. "I like some of the newer models but not keen on having my car turn me in to my insurance company." Just turn that option off when you buy if that is your preference. I haven't followed all the reporting - is that an option? I tend to discount what is written in the popular press so wasn't sure if that can be done. Would also try to suppress some of the noise on the dash for many cars; my wife's Camry has a very busy, distracting dash and the...
by smitcat
Fri Mar 15, 2024 11:01 am
Forum: Personal Finance (Not Investing)
Topic: moving from ~600k to ~1.5M income
Replies: 74
Views: 11762

Re: moving from ~600k to ~1.5M income

I always find these threads a hard pill to swallow when stressed and clambering to make a $120K salary. I am sure tech jobs are hard work and take a certain skillset. But "work smarter not harder" only goes so far depending on your field. It's pretty wild isn't it? While there is certainly luck involved, there is also hard work and good decisions (like selection of a field where this sort of thing is even possible.) Some people also just have rare, valuable skills too. However, I am a firm believer that the typical American dramatically overestimates the difficulty of doubling their income. I was reviewing this recently and realized I've doubled my income 9 times since I started working. How do you do it? Get educated, acquire ra...