Search found 578 matches

by Planner01
Thu Mar 07, 2024 5:22 am
Forum: Personal Investments
Topic: Funds’ review help - smells like a ripoff
Replies: 15
Views: 1748

Re: Funds’ review help - smells like a ripoff

Parkinglotracer wrote: Thu Mar 07, 2024 4:12 am
gotoparks wrote: Thu Mar 07, 2024 12:16 am She will have better luck with Vanguard PAS.
Plus one here. Ask her if she would consider talking with vanguard to compare fees and services. I would not get in the middle of this and try to help her manage her portfolio. The market is going to go up and down and she won’t understand it’s not your fault. If she is a self learner show her our wiki.
Agree. I don’t want to be held responsible. I’d refer her to Vanguard PAS or Rick Ferri. She’s not knowledgeable nor interested in learning.
by Planner01
Wed Mar 06, 2024 9:45 pm
Forum: Personal Investments
Topic: Funds’ review help - smells like a ripoff
Replies: 15
Views: 1748

Re: Funds’ review help - smells like a ripoff

First of all, wow, thank you for such detail analysis. My friend doesn’t understand finances AT ALL. She’s very afraid of losing money and pushes herself to not leave it under the mattress. Hence why this “advisor” recommended this product. thanks. don't mention it. show it to your friend and see what she thinks. it's ok if she doesn't understand some of it. Warren Buffett didn't understand CDOs...but he was smart enough to not buy something he didn't understand. Did you or she read the risk considerations part of the links you provided? (this is only a couple paragraphs, but i thought important enough to share. There are many more risks if you continue reading: A fund that uses FLEX Options to employ a "target outcome strategy" ...
by Planner01
Wed Mar 06, 2024 9:21 pm
Forum: Personal Investments
Topic: Funds’ review help - smells like a ripoff
Replies: 15
Views: 1748

Re: Funds’ review help - smells like a ripoff

delamer wrote: Wed Mar 06, 2024 9:10 pm If it was my friend, I’d send her a copy of this 16-page PDF: https://www.etf.com/docs/IfYouCan.pdf

Then I’d tell her to ditch the advisor.
I’ve tried to teach her but she’s afraid of the stock market and needs hand holding. However I think this recommend portfolio is terrible. I just don’t know enough about this type of funds to really make a good analysis.
by Planner01
Wed Mar 06, 2024 9:19 pm
Forum: Personal Investments
Topic: Funds’ review help - smells like a ripoff
Replies: 15
Views: 1748

Re: Funds’ review help - smells like a ripoff

basically these funds are using options to hedge the downside risk. So they are supposed to not perform as bad as the market when the market falls. However, it appears to me there's a cap on performance which I believe means they don't get the return of the market: The investment objective of the FT Vest U.S. Equity Enhance & Moderate Buffer ETF - March (the "Fund") is to seek to provide investors with returns (before fees and expenses) of approximately twice any positive price return of the SPDR® S&P 500® ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 13.01% while providing a buffer (before fees and expenses) against the first 15% of Underlying ETF losses, over the period from March 20, 2...
by Planner01
Wed Mar 06, 2024 8:12 pm
Forum: Personal Investments
Topic: Funds’ review help - smells like a ripoff
Replies: 15
Views: 1748

Funds’ review help - smells like a ripoff

A friend of mine (35 years old) sent me a pdf file with the recommendation from her financial advisor. She invested $1M with him. This “advisor” admitted to not doing a good job and it’s making up for his lack of attention. In my opinion he’s working for his commission and certainly not looking after my friend’s interest. Which to make matters worse, he’s supposed to be a very close friend of the family. His allocation is 50% into a managed fund (StoneX US Growth Managed Account) that pretty much tracks the S&P. Managed fee of the fund is .10%. The other 50% is split across the following funds: - BUFQ - FT Cboe Vest Fund of Nasdaq-100 Buffer ETFs Date of Inception 3/2023 https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=BUF...
by Planner01
Sun Feb 18, 2024 7:16 pm
Forum: Personal Consumer Issues
Topic: Choosing a LASIK surgeon
Replies: 1
Views: 453

Choosing a LASIK surgeon

I am in the process of researching and scheduling consultations with two eye surgeons for a refractive procedure for our 18 year old kid. I have narrowed it down to: Surgeon #1 - In business for 33 years with a luxury and sizable clinic in our area. I remember hearing his ads on the radio back in the 90s. I posted on FB and asked relatives in town and every single person has done their LASIK with this doctor. His webpage says that the clinic has performed over 125,000 surgeries. Father, wife, and son are all performing surgeries. The staff includes a marketing director. Surgeon #2 - This person was recommended by my best friend who sells eye care for a big brand. She likes the bedside manner and speaks very highly of him. Great reviews onli...
by Planner01
Thu Feb 01, 2024 2:58 pm
Forum: Investing - Theory, News & General
Topic: Brokerage companies sell your data to pay for low fee funds?
Replies: 16
Views: 1481

Re: Brokerage companies sell your data to pay for low fee funds?

retired@50 wrote: Thu Feb 01, 2024 2:14 pm
Planner01 wrote: Thu Feb 01, 2024 1:09 pm What are the products or funds that have a % cap with “no downside”?
Short answer - these are insurance products that benefit the sales person more than the client.

Read this thread: viewtopic.php?t=312870

In particular, read this post: viewtopic.php?p=5207776#p5207776

Regards,
Wow, interesting information. Thank you!
I will wait to get the new plan from my friend as the “fix” her advisor wants to put them on. It sounds like it’s exactly this product.
by Planner01
Thu Feb 01, 2024 1:09 pm
Forum: Investing - Theory, News & General
Topic: Brokerage companies sell your data to pay for low fee funds?
Replies: 16
Views: 1481

Re: Brokerage companies sell your data to pay for low fee funds?

What are the products or funds that have a % cap with “no downside”?
by Planner01
Thu Feb 01, 2024 11:53 am
Forum: Investing - Theory, News & General
Topic: Brokerage companies sell your data to pay for low fee funds?
Replies: 16
Views: 1481

Re: Brokerage companies sell your data to pay for low fee funds?

A friend of mine showed me her portfolio which was invested in around five high turnover, high expense ratio and load fees fund with Hartford (insurance company) and grossly under performing. Her “financial advisor” was the one who set them up with way. I was so upset that he’d take advantage of her and her husband this way. They never looked at their account, for years, and didn’t realize the state of the account. 25% of it was sitting in cash too. The money could have doubled in the time it was sitting in those funds with him if it was invested in a simple 2 or 3 fund portfolio with low fees at Vanguard or Fidelity. They confronted the advisor who admitted that he neglected them but that he was going to fix it by restructuring their port...
by Planner01
Thu Feb 01, 2024 9:58 am
Forum: Investing - Theory, News & General
Topic: Brokerage companies sell your data to pay for low fee funds?
Replies: 16
Views: 1481

Re: Brokerage companies sell your data to pay for low fee funds?

jebmke wrote: Thu Feb 01, 2024 9:47 am
Planner01 wrote: Thu Feb 01, 2024 9:45 am Actually I just realized that all brokerage companies do,
On what do you base this assertion?
It’s right at the bottom of the privacy policy page.
by Planner01
Thu Feb 01, 2024 9:45 am
Forum: Investing - Theory, News & General
Topic: Brokerage companies sell your data to pay for low fee funds?
Replies: 16
Views: 1481

Re: Brokerage companies sell your data to pay for low fee funds?

Actually I just realized that all brokerage companies do, including Hartford. The difference is that they won’t charge you those crazy high fees. He’s clearly taking advantage of them for commission.
by Planner01
Thu Feb 01, 2024 9:10 am
Forum: Investing - Theory, News & General
Topic: Brokerage companies sell your data to pay for low fee funds?
Replies: 16
Views: 1481

Brokerage companies sell your data to pay for low fee funds?

A friend of mine showed me her portfolio which was invested in around five high turnover, high expense ratio and load fees fund with Hartford (insurance company) and grossly under performing. Her “financial advisor” was the one who set them up with way. I was so upset that he’d take advantage of her and her husband this way. They never looked at their account, for years, and didn’t realize the state of the account. 25% of it was sitting in cash too. The money could have doubled in the time it was sitting in those funds with him if it was invested in a simple 2 or 3 fund portfolio with low fees at Vanguard or Fidelity. They confronted the advisor who admitted that he neglected them but that he was going to fix it by restructuring their portf...
by Planner01
Tue Jan 23, 2024 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Kids of wealthy parents, do they work?
Replies: 69
Views: 4915

Re: Kids of wealthy parents, do they work?

Zipster wrote: Tue Jan 23, 2024 7:20 pm This will be an excellent opportunity for him to learn that he will NOT make $20/hr selling knives door to door! He won’t believe you, he won’t believe me, but he also won’t make $20/hr!
I’ve read all of the posts about this MLM scam. I can’t say anything to him because to your point, he won’t believe me. Some people only learning after going through their own experience. That’s him.

Meanwhile, I might start looking for something related to computers he can start doing for work. Even if it’s just 15 hours a week.
by Planner01
Tue Jan 23, 2024 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Kids of wealthy parents, do they work?
Replies: 69
Views: 4915

Kids of wealthy parents, do they work?

I am wondering if I am asking for too much here. Our 17 year old is in high school, excellent grades and generally a good kid. Heading to college for a computer science degree. He has never worked and I have been on him to get a job so that he learns to budget and be somewhat responsible by paying for gas and spending money. He came home today with a job selling knives 🤨. I am not too sure about this. He refuses to get anything that pays less than $15/hr. This job apparently it’s $20/hr. I really don’t care what he makes as the money it’s not that important, but rather I want him to learn to have work ethic. I do worry about this job with the knives and the type of people he’d encounter going from home to home. Yet, I’ve noticed that none o...
by Planner01
Tue Jan 23, 2024 7:54 am
Forum: Personal Consumer Issues
Topic: Has anyone bought a product similar to the Nokbox?
Replies: 0
Views: 457

Has anyone bought a product similar to the Nokbox?

I really like the idea of it if buying a Nokbox as we have our estate plan and all of our papers in a safe but not organized in any way, and certainly nothing to find bank account information.

Are there any other brands or anything you’ve seen like it?
by Planner01
Sun Dec 31, 2023 7:21 pm
Forum: Investing - Theory, News & General
Topic: What ETF funds that track Nasdaq?
Replies: 30
Views: 3220

Re: What ETF funds that track Nasdaq?

In general terms, we have over $2.2M invested, of which around $100k are in Roth IRAs. Around 70% of our funds track the S&P, 10% is in growth mutual funds, the other 20% comes from vested RSUs from my employer (big tech heavily invested in AI).

I’d like to take 30% of the Roth investments and shifted to a fund that tracks Nasdaq. I know that it’s a lot of tech, and we are okay with that. We can take the swings, in order to chase higher returns. We save and invest around $150k a year and have another 15 years until we retire.
by Planner01
Sun Dec 31, 2023 10:58 am
Forum: Investing - Theory, News & General
Topic: What ETF funds that track Nasdaq?
Replies: 30
Views: 3220

Re: What ETF funds that track Nasdaq?

I am looking at QQQ but I don’t see it offered at Fidelity. How are you buying it?
by Planner01
Sun Dec 31, 2023 10:47 am
Forum: Investing - Theory, News & General
Topic: What ETF funds that track Nasdaq?
Replies: 30
Views: 3220

Re: What ETF funds that track Nasdaq?

stan1 wrote: Sun Dec 31, 2023 10:44 am Why the NASDAQ as an index? What would be the investing reason to choose stocks based on what exchange they are listed on?

But to answer your question look at QQQ and QQQM.
Thank you.
by Planner01
Sun Dec 31, 2023 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Pre Nup, Late 30's
Replies: 11
Views: 1363

Re: Pre Nup, Late 30's

I would pose if this way to her “We would already be part taking in a prenup once we marry, by default it would be the state prenup. Rather than have the government dictate how we will manage the split of assets in the event it doesn’t work out, why don’t we create our own as we see fit?”
by Planner01
Sun Dec 31, 2023 10:42 am
Forum: Personal Finance (Not Investing)
Topic: At what net worth did you start not sweating the "small stuff"
Replies: 137
Views: 28528

Re: At what net worth did you start not sweating the "small stuff"

To me this is a matter of principle as to not get overcharged for services and goods. Nothing to do with net worth. However, given the overall financial picture, it’s not something I would give it a lot of thought but I would ask to get it corrected and follow through. But that’s about it. Move on with the vacation and enjoy it.
by Planner01
Sun Dec 31, 2023 10:40 am
Forum: Investing - Theory, News & General
Topic: What ETF funds that track Nasdaq?
Replies: 30
Views: 3220

What ETF funds that track Nasdaq?

I am thinking of investing each of our Roth IRAs into a fund that tracks Nasdaq. I see that Fidelity has FNCMX, which is a mutual fund. For tax efficiency, is there an ETF equivalent within Fidelity? Does it really matter?

Also, what’s Vanguard’s equivalent?

My Roth IRA is with Vanguard and spouse is with Fidelity.

The rest of the IRA funds are invested in funds that track the S&P.
by Planner01
Thu Dec 28, 2023 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

It's not clear to me at all that you need umbrella insurance. For one thing, you don't even state what your net worth is. But regardless, if you aren't a landlord and aren't otherwise at high risk of being sued, you can probably just go without (regular home and auto policies still come with some level of liability coverage, and you can increase THAT coverage to $1MM if you want for much cheaper since it's tied to a specific car/home not to your whole financial world and everyone on every policy like umbrella coverage). You might inquire with an attorney to confirm, but since your son is 18 the question of whether HE needs umbrella insurance is separate assuming he's a legal adult in your state (in Alabama it's 19 but I believe everywhere ...
by Planner01
Thu Dec 28, 2023 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

watchnerd wrote: Thu Dec 28, 2023 12:43 pm Why can't one just take away his car privileges and de-list him as a driver?

He's an adult, I don't see why him living in the same house is any different from having an 18 year old renter in the house. One wouldn't cover them, either.
Insurance companies want to take into account anyone that lives in your house with a drivers license. They won’t exclude him from the vehicles. That’s something they used to do years back. Not anymore.
by Planner01
Thu Dec 28, 2023 5:50 am
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

I know someone who did the following with a 18 y.o. new driver kid, still living with parents. 1) The kid holds car title in his own name and pays for his own insurance , the agreement was not bare minimum coverage but a decent one like 250k/300k/100k 2)The kid is excluded from parents car driving (otherwise their premium will be impacted), they also have Umbrella I was told that the idea is that has something happened due to new driver kid, his parents should not be liable although sharing the same household. And if the event is unfortunately bad then kid has minimum assets to file bankruptcy without dragging the family with him. Maybe worth looking into it? I asked about exclusions but insurance companies no longer do that. I used to be ...
by Planner01
Wed Dec 27, 2023 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

guitarguy wrote: Wed Dec 27, 2023 7:59 pm
Planner01 wrote: Wed Dec 27, 2023 5:52 pm
Rocky Mtn Man wrote: Wed Dec 27, 2023 5:41 pm
Planner01 wrote: Wed Dec 27, 2023 3:12 pm
We are paying $1000 a month for two cars 😢
You pay $12,000 a year for auto insurance???
Yeap. That’s the new premium for two cars and three drivers (including a teenage boy). I know, insane! I want to cry.
What was your premium just before he screwed things up by turning 16?

I have 2 boys - age 2 and 4 - and I want to cry picturing paying for insurance when they get older if premiums are going to increase that much. $12k is just nuts…curious what the % increase looked like. If you were paying $8k then well…it is what it is…but if you were paying $2200 then well holy crap.
We were paying $4687 a year for two vehicles, before the accident. But before he had a license we were paying $1570 a year.
by Planner01
Wed Dec 27, 2023 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Do I have any retirement contribution options this year?
Replies: 3
Views: 391

Re: Do I have any retirement contribution options this year?

You could contribute through the backdoor Roth IRA. There’s no income limit. As long as you have don’t any rollovers from previous retirement accounts or traditional IRA.
by Planner01
Wed Dec 27, 2023 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

watchnerd wrote: Wed Dec 27, 2023 6:04 pm Dang we have $3M in umbrella and only pay $354/year for it.
That used to be us before our kid got his license. The joys of parenthood…. 🙄
by Planner01
Wed Dec 27, 2023 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

Rocky Mtn Man wrote: Wed Dec 27, 2023 5:41 pm
Planner01 wrote: Wed Dec 27, 2023 3:12 pm
We are paying $1000 a month for two cars 😢
You pay $12,000 a year for auto insurance???
Yeap. That’s the new premium for two cars and three drivers (including a teenage boy). I know, insane! I want to cry.
by Planner01
Wed Dec 27, 2023 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

talzara wrote: Wed Dec 27, 2023 3:53 pm
Planner01 wrote: Wed Dec 27, 2023 2:24 pm
edge wrote: Wed Dec 27, 2023 2:17 pm Probably cool him off from driving for a year. The insurers are sending you a signal that you don’t seem to be reading.
That doesn’t change the price as he’s a licensed person living in our home.
Allstate allows you to exclude drivers from an automobile liability policy in most states.

If you do this, keep the car keys in a safe. Your son will be uninsured if he drives the car without permission. (In some states, the policy always provides minimum liability coverage even if an excluded driver drives the car.)
They used to, not anymore.
by Planner01
Wed Dec 27, 2023 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

watchnerd wrote: Wed Dec 27, 2023 4:55 pm
Planner01 wrote: Wed Dec 27, 2023 2:49 pm
KlangFool wrote: Wed Dec 27, 2023 2:35 pm OP,

1) Pay for it.

2) Make sure that he drives a boring and safe car. What is his new car?

KlangFool
A Honda Civic
He has a Civic?

I thought he totaled his car?
He totaled my husband’s car.
by Planner01
Wed Dec 27, 2023 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

JBTX wrote: Wed Dec 27, 2023 2:31 pm Not much you can do as long as he lives with you and drives. Once he leaves then I’d get him off of your policy ASAP and put vehicle in his name. Unfortunately his accident will stay on your accident history for up five years - it depends on the insurance company and how far back they go.

My young adult daughter has totaled 4 cars. She no longer lives with us and at the moment doesn’t have a car. Insurance was costing her about $4k per six months for bare minimums.

We still have one of her accidents on our record even though she hasn’t been on our insurance for years.
We are paying $1000 a month for two cars 😢
by Planner01
Wed Dec 27, 2023 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

KlangFool wrote: Wed Dec 27, 2023 2:35 pm OP,

1) Pay for it.

2) Make sure that he drives a boring and safe car. What is his new car?

KlangFool
A Honda Civic
by Planner01
Wed Dec 27, 2023 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

edge wrote: Wed Dec 27, 2023 2:17 pm Probably cool him off from driving for a year. The insurers are sending you a signal that you don’t seem to be reading.
That doesn’t change the price as he’s a licensed person living in our home.
by Planner01
Wed Dec 27, 2023 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

Re: $2000 a year for $1M umbrella insurance

mrmass wrote: Wed Dec 27, 2023 1:38 pm The $2K isn't for life. Think of it as a one time expense.

Also if you take the 18yo off your cars, and have the kid get their own car/insurance will that help? Or is is more of a dependent thing?
Unfortunately the premium for him would be astronomical (we are already looking at over $1000 a month for a Civic and a Lexus) and since he is still in high school and under our care, we’d still be liable for him.
by Planner01
Wed Dec 27, 2023 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: $2000 a year for $1M umbrella insurance
Replies: 73
Views: 9699

$2000 a year for $1M umbrella insurance

I have a teenage son who totaled a car and also had a ticket. This coupled with a claim for someone that hit me and would not admit to fault. Many companies now won’t write us a policy for an umbrella insurance, except for Liberty Mutual, at $2031 for $1M. We’ve never gone without it but we were paying $200 a year before our almost 18 year old got his license. This is really sad and disappointing to us. One insurance company (All State) said that we might be eligible again in six months, if we maintain a clean record, but they can’t insure us with an umbrella right now. Neither can Geico, or Statefarm, among others. Would you pay the $2K or go without it? We live in a wealthy neighborhood (homes in the millions in a MCOL), so anyone that pu...
by Planner01
Fri Oct 27, 2023 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Elderly divorce rights
Replies: 4
Views: 2238

Elderly divorce rights

Mother in law (MIL) moved to Florida and remarried at 62 her husband of 40 years’ best friend. The new husband came with nothing, other than his social security monthly checks, which are a bit higher than my MILs. MIL has a modest paid off house in a very nice neighborhood, and an annuity of $300,000 (her 401k savings from work. FIL never had retirement savings as he was disabled for the last 20 years of his marriage, and a terrible manager of his finances when he was able to work). The money she has, plus their social security is just enough to cover their expenses. Her husband also works part time for spending money. They are now 72 (her) and 84 (him). I should also mention that this is his fourth marriage. The kids with the first two wiv...
by Planner01
Sun Sep 10, 2023 6:28 am
Forum: Investing - Theory, News & General
Topic: Assessing funds and withdrawal strategies for possible retirement
Replies: 12
Views: 1551

Re: Assessing funds and withdrawal strategies for possible retirement

KlangFool wrote: Fri Sep 08, 2023 11:35 am
Planner01 wrote: Fri Sep 08, 2023 10:10 am
- 15 year mortgage which would naturally be paid off in 2 years.
Planner01,

What does it means?

A) There are only 2 years left with the mortgage.

B) He plan to make a big payment in 2 years to pay it off.

(A) or (B)?

KlangFool
That there are only two years left in the mortgage.
by Planner01
Fri Sep 08, 2023 10:10 am
Forum: Investing - Theory, News & General
Topic: Assessing funds and withdrawal strategies for possible retirement
Replies: 12
Views: 1551

Assessing funds and withdrawal strategies for possible retirement

A friend of mine is contemplating retirement and we discussed several approaches if he were to retire now. He didn’t give me concrete numbers. We just talked in high level ideas and scenarios. I’d like to hear your thoughts to gain insight on how you all plan for retirement income. - Married and currently 62. Still working and earning a high income ($250k or so). - Wife has been a SAHM for 30 years but he says that his wife qualifies for a small social security benefit as she had worked before. - 15 year mortgage which would naturally be paid off in 2 years. He opened a HELOC a few years ago at a static 1.9%, which is good for 7 more years. There’s no debt on it. He is comfortable carrying a mortgage into retirement if it means taking advan...
by Planner01
Sat Jul 29, 2023 7:39 am
Forum: Personal Finance (Not Investing)
Topic: How much did you spend on your cars?
Replies: 96
Views: 9697

Re: How much did you spend on your cars?

Neither. I picked the car I liked and I just bought it. I happen to be a saver so I don’t tend to overspend anyway. It turns out that I paid for a car that’s its price is 23% of my individual annual income, and 11% of household income.

We always buy new and keep for 10 years.
by Planner01
Sat Jul 15, 2023 8:29 pm
Forum: Personal Investments
Topic: WWYD, take the lump sum or keep the monthly pension?
Replies: 18
Views: 1578

Re: WWYD, take the lump sum or keep the monthly pension?

Jeepguy wrote: Sat Jul 15, 2023 8:24 pm In order for the two options to be equivalent in 20 years, you would need to realize 10% annual return on the initial $94k payout, which would grow to $600k. By withdrawing 4% yearly at that time, you would generate essentially the same annual income as the pensions $24k per year. If it were me I would prefer to have the payout rather than a future pension, however both options appear to be equivalent based on those assumptions.
I came to the same conclusion. I will take the payout and invest it.
by Planner01
Sat Jul 15, 2023 7:06 pm
Forum: Personal Investments
Topic: Take lump sum pension buyout now at 45 or defer?
Replies: 14
Views: 1684

Re: Take lump sum pension buyout now at 45 or defer?

I received a similar offer today. $1979 a month at 65 or take the lump sum of $94,396 now.
I think I am going to take it and roll it to my IRA, and then to my 401K, to avoid taxes (for now) and leave the path open for the backdoor Roth contributions.
If I get an average of 10% return, in 20 years, the 4% withdraw rate is pretty close to the monthly benefit pension offered now. And I get to keep the principal.
by Planner01
Sat Jul 15, 2023 7:00 pm
Forum: Personal Investments
Topic: WWYD, take the lump sum or keep the monthly pension?
Replies: 18
Views: 1578

Re: WWYD, take the lump sum or keep the monthly pension?

Jimbo Moneybags wrote: Sat Jul 15, 2023 6:36 pm Did you and this Boglehead work at the same company? :wink:

viewtopic.php?f=1&t=408628&

Good discussion there as well.
Yes! Thanks for the link.
by Planner01
Sat Jul 15, 2023 5:17 pm
Forum: Personal Investments
Topic: WWYD, take the lump sum or keep the monthly pension?
Replies: 18
Views: 1578

Re: WWYD, take the lump sum or keep the monthly pension?

HeelaMonster wrote: Sat Jul 15, 2023 5:09 pm FWIW, plugging your lump sum ($94,396) into compound interest calculator gives you $170,490 after 20 years at 3%, or $302,741 after 20 years at 6%. Then the question becomes what kind of monthly income you could pull from that amount, for sake of comparison?

https://www.investor.gov/financial-tool ... calculator
That’s $1002 a month using a 4% interest withdrawal.
by Planner01
Sat Jul 15, 2023 4:49 pm
Forum: Personal Investments
Topic: WWYD, take the lump sum or keep the monthly pension?
Replies: 18
Views: 1578

Re: WWYD, take the lump sum or keep the monthly pension?

Stinky wrote: Sat Jul 15, 2023 4:28 pm Take the lump sum.

Roll it into an IRA, invested per your asset allocation.

Let it compound for 20 years.

Rest easy.
If I were to take it, I’d roll it to an IRA, and then roll it to my current 401K and keep it invested with the rest of the money there.
I need to keep the traditional IRA open for backdoor Roth contributions.
by Planner01
Sat Jul 15, 2023 4:27 pm
Forum: Personal Investments
Topic: WWYD, take the lump sum or keep the monthly pension?
Replies: 18
Views: 1578

Re: WWYD, take the lump sum or keep the monthly pension?

HeelaMonster wrote: Sat Jul 15, 2023 4:21 pm Does the monthly benefit have an inflation adjustment (COLA), or is it locked in at $1979?
No cost of living adjustment.
by Planner01
Sat Jul 15, 2023 4:15 pm
Forum: Personal Investments
Topic: WWYD, take the lump sum or keep the monthly pension?
Replies: 18
Views: 1578

WWYD, take the lump sum or keep the monthly pension?

I am getting offered a lump sum pension from an old job where I spent 20 years.

What would you do, keep the monthly pension, which is 20 years away for the maximum benefit of $1979 or take the lump sum of $94,396 now?

This money is not needed for my retirement, it’s nice to have but I will have more than plenty to retire on.
by Planner01
Mon Jul 10, 2023 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Megacorp pension buyout - what should I do?
Replies: 86
Views: 10033

Re: Special lump sum pension opportunity coming soon?

I also received the same flyer from a previous employer. I was with them for 20 years but I am 20 years away from 65. I will be curious what the offer is.

My initial thought was to do what I did with my spouse’s pension buy out. I would take it and roll it into an IRA, then roll it into the new 401K. The goal is to invest it the same way (aggressive) as the rest of my investments.

I keep my traditional IRA empty, in order to contribute to the backdoor Roth IRA.
by Planner01
Wed Jul 05, 2023 2:51 pm
Forum: Personal Investments
Topic: Sell vested RSUs to fund Roth IRA
Replies: 14
Views: 1344

Re: Sell vested RSUs to fund Roth IRA

I am trying to get the answer to my post but people are getting hung up on the RSU part. Let’s pretend, the money sitting in a brokerage account invested in a fund that tracks the S&P, would you sell it to use that money to contribute to a Roth IRA? I would question how well diversified it really is if you are holding some vested RSUs. Sell all vested RSUs - not 1/3. People are getting hung up on the RSU part because vesting RSUs are the same as cash. There are no tax consequences if you sell at vest, so there is no financial reason to hold the vested stocks. You can sell 1/3 to fund your Roth IRA. Or you can sell them all to fund your investment plan. People will often ask the question, "If your company gave you a cash bonus, wou...
by Planner01
Wed Jul 05, 2023 7:24 am
Forum: Personal Investments
Topic: Sell vested RSUs to fund Roth IRA
Replies: 14
Views: 1344

Re: Sell vested RSUs to fund Roth IRA

Since the majority of BH say to sell all vested RSUs, I wouldn’t expect a lot of opposition to selling some. What if it was a regular brokerage account with a diversified allocation, would it still be smart to sell to shift it to a Roth IRA? I am trying to get the answer to my post but people are getting hung up on the RSU part. Let’s pretend, the money sitting in a brokerage account invested in a fund that tracks the S&P, would you sell it to use that money to contribute to a Roth IRA? I would question how well diversified it really is if you are holding some vested RSUs. Sell all vested RSUs - not 1/3. Yes. I would contribute to a Roth IRA, assuming that I could do so without paying pro-rata taxes (ie, I have no traditional IRAs). ET...