Search found 120 matches

by cresive
Fri Jan 26, 2018 6:07 pm
Forum: Investing - Theory, News & General
Topic: Value of Annuity in Early Retirement
Replies: 6
Views: 669

Re: Value of Annuity in Early Retirement

Many good points. I do need to research COLA'd annuities, or at least cover inflation with additional assets. Other posters were not so tough on the comparison, and I appreciate everyone's input. I think I need to clarify that I when I stated early retirement, I meant early years in a standard retir...
by cresive
Fri Jan 26, 2018 12:36 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation in Early Retirement--a different Perspective
Replies: 18
Views: 2676

Re: Asset Allocation in Early Retirement--a different Perspective

Cresive....It was my thread that livesoft was responding to. Livesoft has given me much to think about (as have others). A couple of points. In your example, I think you might be just a bit off. Livesoft posited a 10% decline in bonds and a 50% decline in stocks. Using your example, 500K * 90% = 45...
by cresive
Fri Jan 26, 2018 12:20 pm
Forum: Investing - Theory, News & General
Topic: Value of Annuity in Early Retirement
Replies: 6
Views: 669

Value of Annuity in Early Retirement

I know that this has been covered before, and before you point me to an old thread, I have a specific situation that I wish to apply whether or not to purchase an annuity. I am presenting this scenario based upon some numbers I drew up from another post suggesting a maximum stock allocation for some...
by cresive
Fri Jan 26, 2018 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH Ira for kids
Replies: 41
Views: 3553

Re: ROTH Ira for kids

I am not a lawyer, but it is my understanding that you have to have documented income to qualify for a Roth. You can also only deposit up to your income level. If your child only makes $1000 doing lawns, then your limit is $1000 to donate into your Roth.
by cresive
Fri Jan 26, 2018 9:37 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation in Early Retirement--a different Perspective
Replies: 18
Views: 2676

Re: Asset Allocation in Early Retirement--a different Perspective

I have often seen “be prepared for a 50% drop in equities at any time” discussed within these forums but this is the first time I see the 10% figure used for a potential bond crash. Where is the 10% coming from and what sort of bonds are we talking about, may I ask? I don't know where the 10% figur...
by cresive
Thu Jan 25, 2018 12:48 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation in Early Retirement--a different Perspective
Replies: 18
Views: 2676

Asset Allocation in Early Retirement--a different Perspective

I was reading a series of posts about bucket theory, etc. on asset allocation in early retirement. Someone posted a concept that caught my eye. Unfortunately, I have lost the original posters comments. Therefore, I will paraphrase his statement and hope he will forgive my not making appropriate cita...
by cresive
Thu Jan 25, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: Question to Taylor and others regarding bucket approach in retirement
Replies: 53
Views: 3246

Re: Question to Taylor and others regarding bucket approach in retirement

I have lost sight of the post that brought the question of asset allocation versus loss capacity. Paraphrasing the original poster describing a bad market; if Bonds go down < 10% and Stocks go down < 50% then you keep the money you can't afford to lose within the remaining 90% bond and 50% of stocks...
by cresive
Sun Jan 21, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Saturday Morning Panic and I-bonds
Replies: 8
Views: 1567

Re: Saturday Morning Panic and I-bonds

Thanks everyone for your comments. As a couple of you have said, I am getting too much into the weeds, so I did some simple arithmetic and decided to quit the I-bonds and up my Roth.

Thanks again,
cresive
by cresive
Sat Jan 20, 2018 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Saturday Morning Panic and I-bonds
Replies: 8
Views: 1567

Saturday Morning Panic and I-bonds

Synopsis: Age 56—Want to retire about age 62. My intention is to find an encore job to cover essential spending until FRA where I will use my SSA benefits to cover them. I almost have sufficient funds in my tax-sheltered accounts to cover retirement. At age 62, should have sufficient funds, + actual...
by cresive
Fri Dec 08, 2017 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Question about IRMAA and first couple years of retirement
Replies: 17
Views: 1818

Re: Question about IRMAA and first couple years of retirement

Re: Went through this personally. The Monday after I left my job, DW and I marched down to the SS office and filed the paperwork. You need the termination letter from your employer. Keep the termination letter, because they’ll keep trying to add the IRMAA every year until you file taxes with the lo...
by cresive
Tue Dec 05, 2017 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Trust or Will
Replies: 14
Views: 1780

Re: Trust or Will

Hello! I am in mid 30's, have a few real estate properties, investments and other savings. I recently met with an Attorney to discuss Will/Trust options and he recommends a Trust (Estate) over a Will. An Estate requires me to add one of my properties to it. We currently only have 1 child (not sure ...
by cresive
Tue Dec 05, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Question about IRMAA and first couple years of retirement
Replies: 17
Views: 1818

Re: Question about IRMAA and first couple years of retirement

I figured there must be some way around the issue. Thanks!!
by cresive
Tue Dec 05, 2017 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Question about IRMAA and first couple years of retirement
Replies: 17
Views: 1818

Question about IRMAA and first couple years of retirement

Hello all, I have a fundamental question about the Income-Related Monthly Adjusted Amount calculation and retirement. From what I have read, IRMAA is calculated using a two-year old tax return--i.e. my 2017 IRMAA would be calculated using my 2015 tax return. I had always thought it was a three year ...
by cresive
Mon Nov 27, 2017 8:13 am
Forum: Investing - Theory, News & General
Topic: How your FA, insurance agent, your community reacts when you show your financial knowledge?
Replies: 39
Views: 4857

Re: How your FA, insurance agent, your community reacts when you show your financial knowledge?

This post is for pure entertainment. I don't have a financial advisor, but for those who had one and decided to fire him, how did he react? Did he lose his temper and became more aggressive, or tried in any offensive way to keep you? Have you ever turned down a WL insurance agent? and how persisten...
by cresive
Sat Nov 04, 2017 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Stock Share in Estate
Replies: 5
Views: 335

Re: Help with Stock Share in Estate

GREAT Information!!! Thank everyone who answered my post

Ben
by cresive
Sat Nov 04, 2017 10:47 am
Forum: Investing - Help with Personal Investments
Topic: Help with Stock Share in Estate
Replies: 5
Views: 335

Help with Stock Share in Estate

Hello All, I was the executor of a couzin's estate. I was also the successor trustee in his living revocable trust. He died a few years ago and his estate is basically settled. However, I was going through a bunch of files and found a stock voucher (or actual stock, I don't know what it is called). ...
by cresive
Mon Oct 23, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Bond ladders that are hard to climb
Replies: 11
Views: 1007

Re: Bond ladders that are hard to climb

Lots of us prefer a ladder of TIPS (Treasury Inflation-Protected Securities) to a ladder of nominal Treasuries. Nobody is expecting any unexpected inflation these days, but Inflation has happened before, so it might happen again. TIPS protect against that risk. Here's a thread about building a TIPS...
by cresive
Mon Oct 23, 2017 8:02 am
Forum: Investing - Help with Personal Investments
Topic: Switching TSP Lifecycle Funds Question
Replies: 12
Views: 885

Re: Switching TSP Lifecycle Funds Question

YOu have to check with your specific fund, but usually if you have held the fund for longer than a specific time period (usually 3-9 months) then moving your funds shouldn't cost you. Direct movement of funds from "like" accounts is free. Some accounts have fees if you repeatedly move funds, but the...
by cresive
Mon Oct 23, 2017 7:59 am
Forum: Investing - Help with Personal Investments
Topic: Bond ladders that are hard to climb
Replies: 11
Views: 1007

Re: Bond ladders that are hard to climb

You can buy treasuries in an IRA. VBTLX (Vanguard's Total Bond Market Index) is a very popular IRA holding. I own it in an IRA. It is heavily weighted toward treasuries. Maybe you mean buying them via Treasury Direct. Yes, I understand you can own treasury FUNDS within an IRA or a 401 plan. However...
by cresive
Mon Oct 23, 2017 7:28 am
Forum: Investing - Help with Personal Investments
Topic: Bond ladders that are hard to climb
Replies: 11
Views: 1007

Bond ladders that are hard to climb

Hello All, I have read on numerous occasions that a good hedge against sequence risk is to build a bond ladder. A bond ladder is supposed to provide income, and be a hedge against inflation risk. Wade Pfau suggests building a 10-year ladder by buying 10-yr treasury bonds each year until you retire. ...
by cresive
Thu Oct 19, 2017 10:39 am
Forum: Personal Finance (Not Investing)
Topic: When is a Power of Attorney not valid?
Replies: 2
Views: 564

Re: When is a Power of Attorney not valid?

I am not a lawyer, but I believe there should be a statement in your DPOA document that allows for your mother to move (even out of state) but retain you as her DPOA. I would definitely consult with an attorney within the new state of residence to make sure everything is in order. Since you mentione...
by cresive
Wed Oct 04, 2017 7:21 pm
Forum: Investing - Theory, News & General
Topic: Some Hand-Holding
Replies: 17
Views: 1396

Re: Some Hand-Holding

... Where my anxiety is rising is how to ride out the next situation. I have an asset allocation of 70% equities and 30% bonds--all in mutual funds. This is down from an 80/20 allocation about a year ago. I did the reduction in anticipation of "the stock crisis of 2016." I am torn between wishing I...
by cresive
Wed Oct 04, 2017 9:31 am
Forum: Investing - Theory, News & General
Topic: Some Hand-Holding
Replies: 17
Views: 1396

Re: Some Hand-Holding

If you are concerned about what others say - market will crash or you are nervous, then you have too much allocated to equities. You can not successfully time the market, give up now! Instead, design an asset allocation that permits you to sleep at night and not go look at "what the market is doing...
by cresive
Wed Oct 04, 2017 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Account Stolen by Identity theft
Replies: 392
Views: 59940

Re: Identity theft

My elderly father just called me and informed me that he was just notified by the company that holds one of his IRA's that all of the money has been withdrawn from the account. They also gave him a number to call in the event that this was an unauthorized withdrawal. This was an unauthorized withdr...
by cresive
Wed Oct 04, 2017 7:45 am
Forum: Investing - Theory, News & General
Topic: Does anyone hold cash?
Replies: 58
Views: 6607

Re: Does anyone hold cash?

Toons wrote:
Wed Oct 04, 2017 7:35 am
Still working.
5-10% Cash
:happy
Is that in your retirement fund, or is that an EF?
by cresive
Wed Oct 04, 2017 7:45 am
Forum: Investing - Theory, News & General
Topic: Does anyone hold cash?
Replies: 58
Views: 6607

Re: Does anyone hold cash?

I keep two years of expenses in cash now that I am retired. I agree with your position. When I am retired, I plan to use a bucket-like system and hold at least 2 years expenses in cash or equivalents. However, the article was about someone 8-10 years prior to retirement date. I believe there are to...
by cresive
Wed Oct 04, 2017 7:42 am
Forum: Investing - Theory, News & General
Topic: Some Hand-Holding
Replies: 17
Views: 1396

Some Hand-Holding

I know this is probably a popular post and it may have been answered before. However, I thought I would post this question to help with my personal anxiety about my plan. I have read for the last couple of years that the current bull market is getting long in the tooth and we are due for a major mar...
by cresive
Wed Oct 04, 2017 7:24 am
Forum: Investing - Theory, News & General
Topic: Does anyone hold cash?
Replies: 58
Views: 6607

Does anyone hold cash?

I just read an article about short-term investing. I was hoping to learn some tips for saving for bigger ticket items, or for emergency funds. I was underwhelmed with the information and left with a nagging question. Quick Synopsis of me: about 8-12 years from retirement holding more than the lion's...
by cresive
Thu Sep 14, 2017 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Can't freeze credit at Experian?
Replies: 75
Views: 39714

Re: Can't freeze credit at Experian?

We did all 5 credit bureaus yesterday for H and me. We only had a slight glitch with Transunion because some of their info is dated/old and we didn't like the multiple choice options. Fortunately we were able to complete the freeze over the phone. It was easier than when we did fraud alerts previou...
by cresive
Tue Sep 12, 2017 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion Question
Replies: 5
Views: 745

Roth Conversion Question

Hello all, I want to say thanks for all the help I have received on this site. I have a question concerning converting money from a pretax account to a Roth account. I only have 401/403 pre-tax money that is associated with my employer and some money in a Roth IRA. They are all with Fidelity, but th...
by cresive
Thu Aug 10, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Help with Bond Math
Replies: 7
Views: 1036

Re: Help with Bond Math

Thanks to everyone who tried to explain this math. I will print and re-read your responses to see if I can get the idea. I may just have to stick with the idea that rising rates hurt bonds and especially bond funds. I get the overall idea, but some of the nuanced math still eludes me. I guess it wil...
by cresive
Thu Aug 03, 2017 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Bond Math
Replies: 7
Views: 1036

Help with Bond Math

I just sat through a bond webinar from Fidelity and I can't seem to wrap my head around a concept of rising interest rates. The scenario is that there is an increase of 50 basis points/year (0.5%) over the next 2 years. The slide had the following information: Hypothetical example: Yields rise 100bp...
by cresive
Tue Jul 18, 2017 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Question on I bonds
Replies: 11
Views: 1405

Re: Basic Question on I bonds

Hello everyone, Thank you for taking the time to read and hopefully explain the answer to my question. I have just started investing in I bonds. I have bout bonds for the last 5 months. In that time, the interest rate changed from 2.75% to 1.96%. The way I understood the rate change, ALL my bonds w...
by cresive
Mon Jul 17, 2017 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Basic Question on I bonds
Replies: 11
Views: 1405

Re: Basic Question on I bonds

Chuck wrote:The rate changes every 6 months from the purchase date of the bond. So you will get 6 months at the initial rate, then it will change.

Thanks.
by cresive
Mon Jul 17, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Basic Question on I bonds
Replies: 11
Views: 1405

Basic Question on I bonds

Hello everyone, Thank you for taking the time to read and hopefully explain the answer to my question. I have just started investing in I bonds. I have bout bonds for the last 5 months. In that time, the interest rate changed from 2.75% to 1.96%. The way I understood the rate change, ALL my bonds wo...
by cresive
Thu Jun 08, 2017 12:39 pm
Forum: Investing - Theory, News & General
Topic: Feasibility Question on Trad to ROTH IRA Conversion
Replies: 6
Views: 695

Re: Feasibility Question on Trad to ROTH IRA Conversion

I think I may have misread the article when it stated that when you move to a state with no income tax it wasn't worth converting to a Roth. That seems like the optimal state tax situation, avoid state taxes when contributing to Traditional and pay no state taxes on withdrawal. Are you married? It ...
by cresive
Thu Jun 08, 2017 12:34 pm
Forum: Investing - Theory, News & General
Topic: Feasibility Question on Trad to ROTH IRA Conversion
Replies: 6
Views: 695

Re: Feasibility Question on Trad to ROTH IRA Conversion

[ The marginal tax rates in play may be rather different from what you are thinking. Beyond that, don't withdraw extra just because your tax rate is low. Whenever you have the opportunity to withdraw at a lower marginal tax cost than you anticipate after RMDs have begun, use that space for Roth conv...
by cresive
Thu Jun 08, 2017 7:12 am
Forum: Personal Finance (Not Investing)
Topic: How often do you redeem your credit card cash rewards?
Replies: 54
Views: 4252

Re: How often do you redeem your credit card cash rewards?

Friends, I was wondering how often do you redeem your credit card cash rewards? Do you save them up for something to splurge on -or- do you redeem them monthly? Just curious. Thanks, Gort I have a fidelity cash reward that goes directly into my Roth account. I used to have travel card and then a bi...
by cresive
Thu Jun 08, 2017 7:02 am
Forum: Investing - Theory, News & General
Topic: Feasibility Question on Trad to ROTH IRA Conversion
Replies: 6
Views: 695

Feasibility Question on Trad to ROTH IRA Conversion

Hello all, I have one of those quirky questions again. I am trying to wrap my head around doing a Roth conversion in early retirement. I was reading an article giving the pros and cons of doing a conversion and wondered what the group thought of my game plan as it half fits and half does not fit wit...
by cresive
Wed May 31, 2017 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Academic Question on a real world situation
Replies: 34
Views: 3583

Academic Question on a real world situation

I am trying to wrap my head around a safe withdrawal rate for retirement. I am about 8 years away from retirement and trying to get an idea of my situation. I don’t want to focus on my specific situation, so I am hoping to pose an “academic” question that represents my conundrum. The reason I am ask...
by cresive
Thu May 11, 2017 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Cash Fund Advice
Replies: 12
Views: 1302

Re: Cash Fund Advice

I just got off the phone with a Fidelity rep who basically said that the only cash/mm fund they have is the Fidelity government fund. Today this fund pays 0.11% after its expenses. n How about SPRXX? 7 day yield is 0.81%. Far better than the gov't fund the rep suggested. https://fundresearch.fideli...
by cresive
Thu May 11, 2017 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Cash Fund Advice
Replies: 12
Views: 1302

Re: Cash Fund Advice

livesoft wrote:The link is one part of a multi-part series on sustained withdrawal rates. You may wish to start with Part 1 instead of with the Part 12 that I linked.

Thanks for the link. There is some great reading there. I will delve into it and see what I can learn. Good reading!! :sharebeer
by cresive
Wed May 10, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Cash Fund Advice
Replies: 12
Views: 1302

Re: Cash Fund Advice

OP, Have you considered Vanguard's money market funds? I use the Vanguard Municipal Money Market Fund (VMSXX) as my place to store cash for short-term needs. https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0045 The yield on the fund is 0.73%, but it's exempt from federal incom...
by cresive
Wed May 10, 2017 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Cash Fund Advice
Replies: 12
Views: 1302

Re: Cash Fund Advice

Why not just increase your asset allocation to bonds instead of holding that cash? Here is a recent write-up about the "cash cushion": https://earlyretirementnow.com/2017/03/29/the-ultimate-guide-to-safe-withdrawal-rates-part-12-cash-cushion/ ' Thanks. I intend to build up a bond account, but I was...
by cresive
Wed May 10, 2017 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Cash Fund Advice
Replies: 12
Views: 1302

Cash Fund Advice

Hello All, I am approaching the "retirement red zone" where a market crash could severely affect my ability to retire. To offset this hazard, I intend to build a cash reserve of 2-3 years expenses. I am hoping that having a cash buffer (bucket 1 if you like), will enable me to weather a market drop ...
by cresive
Mon May 08, 2017 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Most Common Financial Mistakes
Replies: 108
Views: 16043

Re: Most Common Financial Mistakes

1. Insufficient savings rate. 2. Overspending. 3. Market timing. 4. Paying too much for investments. 5. Letting emotions make financial decisions (big contributor to #2 and #3). I have read almost all of the responses in this thread and most are insightful. The response above was a nice, list and a...
by cresive
Thu Apr 20, 2017 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Should I bother with a 401k at present?
Replies: 25
Views: 2451

Re: Should I bother with a 401k at present?

Considering my current financial situation, does it make sense to put money into a 401k now? I am a 31 year old male with a wife and 2 year old and newborn due in November this year. I currently work as a geologist in an environmental consulting company. Current salary is around 55,000. I live in F...
by cresive
Tue Apr 18, 2017 6:24 am
Forum: Personal Consumer Issues
Topic: If a doctor takes your insurance, must they accept the negotiated rate?
Replies: 62
Views: 5797

Re: If a doctor takes your insurance, must they accept the negotiated rate?

I am on a HDHP that is structured as follows: $4000 individual/family deductible $4001-$8000 is 20% coinsurance $8001+ is 100% covered My employer is nice enough to provide us $4000 in an Health Reimbursement Account (HRA) to cover our deductible. This takes the form of a Visa Debit Card. We have t...
by cresive
Sun Apr 16, 2017 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Will - what is complicated?
Replies: 72
Views: 5384

Re: Will - what is complicated?

I'm embarrassed to admit how long I have put this off, but I need to get a will or something similar together. I've read through many posts on this, and there seems to be a split of people saying to use LegalZoom, WillMaker, etc versus going to an attorney. The key phrase that comes up when differe...
by cresive
Sat Apr 15, 2017 9:13 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 2406
Views: 452713

Re: What's Your Credit Card Rewards Strategy?

There are lots of threads that talk about what the best credit card deals are, ones specific to travel rewards, best cash back cards, etc. I thought it might be helpful to have everyone post their strategy they have for earning/redeeming/maximizing credit card rewards. This would be good info, and ...