Search found 13329 matches

by willthrill81
Tue Nov 12, 2019 2:05 pm
Forum: Personal Investments
Topic: 4 % Rule
Replies: 11
Views: 563

Re: 4 % Rule

I hope to retire in a year or two. Currently 61 with 750k in my 401k. If I take ss early plus a small pension I will need 2000 per month from my 401k. If nothing changes, 3.2% the first year will give me 2000/mo. ... I am conservative with investing now so close to pulling the trigger, 30/70. I'm a...
by willthrill81
Tue Nov 12, 2019 2:01 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

Some believe "teaching a man to fish" and leaving nothing is best. In my opinion, this seems like a bit of a contradictory idea. Seems to me that if you spend everything, that isn't really teaching responsibility (at least not by example). It is very possible to spend most or even all of one's reso...
by willthrill81
Tue Nov 12, 2019 1:55 pm
Forum: Personal Investments
Topic: 4 % Rule
Replies: 11
Views: 563

Re: 4 % Rule

I hope to retire in a year or two. Currently 61 with 750k in my 401k. If I take ss early plus a small pension I will need 2000 per month from my 401k. If nothing changes, 3.2% the first year will give me 2000/mo. ... I am conservative with investing now so close to pulling the trigger, 30/70. I'm a...
by willthrill81
Tue Nov 12, 2019 1:21 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

Given the choice between wisdom and money, wisdom is robustly superior. Just look at how lottery winners almost universally turn out. Genuinely curious here, do lottery winners "universally" turn out poorly? I realize some or even many of them do, but I'd be really curious about the statistics. Sev...
by willthrill81
Tue Nov 12, 2019 12:38 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

Not every vacation needs to be in the big city of a country. We have done a few vacations where we get a car and drive the countryside with no real destination. Just exploring the world. Those are some of my favorite trips. Sure, The Vatican was awesome, but so was driving down the west coast stopp...
by willthrill81
Tue Nov 12, 2019 12:02 pm
Forum: Investing - Theory, News & General
Topic: Rich people are hoarding cash
Replies: 108
Views: 17126

Re: Rich people are hoarding cash

I am predicting a variety of upward and downward results at different times. I'm predicting several inches of snow each month for the next 4-5 months, and that it will all melt at various points of time before June, 2020. My snowblower is ready... My shovel is ready... My crockpot is ready... My ge...
by willthrill81
Tue Nov 12, 2019 11:58 am
Forum: Personal Investments
Topic: 4 % Rule
Replies: 11
Views: 563

Re: 4 % Rule

Your needed withdrawals are 3.2% of your current portfolio balance. That is very close to the historic perpetual withdrawal rate (i.e. the starting withdrawal rate which will leave you with at least your inflation-adjusted starting balance after 20+ years). So unless you want to leave behind a beque...
by willthrill81
Tue Nov 12, 2019 11:40 am
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

My wife and I have different opinions on this. She is a spend it all person. On the other hand she says we don't want to be a burden on the kids. So, my philosophy has been since I'm a few years into retirement I'm a bit cautious. It doesn't mean we don't spend as our net yearly spending is right a...
by willthrill81
Tue Nov 12, 2019 11:37 am
Forum: Investing - Theory, News & General
Topic: Rich people are hoarding cash
Replies: 108
Views: 17126

Re: Rich people are hoarding cash

firebirdparts wrote:
Tue Nov 12, 2019 11:20 am
I am predicting a variety of upward and downward results at different times.
Similarly, I predict that there will be a market crash at some point in the future.

Rule #1 of economics: you can predict what or when but never both simultaneously.
by willthrill81
Tue Nov 12, 2019 11:33 am
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

Really like the 5% yearly withdrawal with 3% inflation adjusted floor. Start with higher spending, reap the rewards of good market years while automatically lowering spending if bad year. Sure, spending will fluctuate but for many of us, this will mean less discretionary spending not losing essenti...
by willthrill81
Tue Nov 12, 2019 10:43 am
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

"Billionaires Warren Buffett and Bill Gates have similar ideas about how much money you should leave your kids" As for how much to pass on to your kids, Buffett once offered a good rule of thumb: The perfect amount to leave to your kids, he told Fortune in 1986, is ″enough money so that they would ...
by willthrill81
Tue Nov 12, 2019 10:34 am
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

It took a while but it finally dawned on us our real risks to a long happy and successful retirement was premature death or lifestyle degrading disability/illness. And for a couple, it only takes a misfortune to one or the other to really mess up long-held hopes and plans for both. And even absent ...
by willthrill81
Tue Nov 12, 2019 10:25 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 1878
Views: 195240

Re: U.S. stocks continue to soar!

Stinky wrote:
Tue Nov 12, 2019 10:22 am
Soaring today!

S&P has touched 3,099 today. 3,100 is in sight!
Achieved! :beer
by willthrill81
Mon Nov 11, 2019 5:32 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

How do you know how much to spend if you want to spend it all? :twisted: It's a pretty simple equation: "how much to spend" = "all" Bill Gates has $106B. If he spends it all today, poor Bill will be broke from tomorrow. He could buy one heck of an annuity though, which would arguably spend the enti...
by willthrill81
Mon Nov 11, 2019 5:22 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

However, one comment I would make is that you do run out of places to go. The number of places worth traveling to isn't small, but it isn't huge either. For example, I could cover the ones on my list in less than a year of full-time travel. Depends on how you travel... I spent a week in Italy once,...
by willthrill81
Mon Nov 11, 2019 5:08 pm
Forum: Personal Investments
Topic: Worth Contributing to an HSA?
Replies: 6
Views: 400

Re: Worth Contributing to an HSA?

Isn't the key question here whether you are paying for your premiums while on your father's plan? If the answer is no, then clearly it is not worthwhile to pay for HDHP solely to contribute to a HSA. No I am not paying for premiums. Which makes me believe staying on his plan is the better choice he...
by willthrill81
Mon Nov 11, 2019 5:07 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

I do enjoy my career, but it is only a means to an end. My work, while giving me significant time off, greatly limits our ability to travel during much of the year. Considering that our desired spending is only around half of our current income, an early retirement (age 53-55) is very much within o...
by willthrill81
Mon Nov 11, 2019 5:02 pm
Forum: Personal Investments
Topic: Worth Contributing to an HSA?
Replies: 6
Views: 400

Re: Worth Contributing to an HSA?

If you are in good health and the other terms of the HSA plan are good (e.g. reasonable out-of-pocket maximum, desired healthcare providers are in-network), then I would probably go that route. The HSA is the single best tax-advantaged account in existence today given that it is triple-tax advantage...
by willthrill81
Mon Nov 11, 2019 4:51 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

There’s a thing going on here that someone touched upon, that I think for a large number of Bogleheads is the case: many of us don’t like the idea of a long grind down in nest egg value. The hypothesis is that 4% will SURVIVE a 30 year retirement. But the concern is to not merely survive. Lower wit...
by willthrill81
Mon Nov 11, 2019 4:36 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

Indeed, I don't consider costs associated with living in a particular location to be discretionary, and something that I would be willing to cut if my portfolio performs poorly. I'd much rather work longer, save more, and use a lower WR to avoid potentially having to do this. Moving is seriously li...
by willthrill81
Mon Nov 11, 2019 4:15 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

Indeed, I don't consider costs associated with living in a particular location to be discretionary, and something that I would be willing to cut if my portfolio performs poorly. I'd much rather work longer, save more, and use a lower WR to avoid potentially having to do this. Moving is seriously li...
by willthrill81
Mon Nov 11, 2019 3:36 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

There’s a thing going on here that someone touched upon, that I think for a large number of Bogleheads is the case: many of us don’t like the idea of a long grind down in nest egg value. The hypothesis is that 4% will SURVIVE a 30 year retirement. But the concern is to not merely survive. Lower wit...
by willthrill81
Mon Nov 11, 2019 3:27 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

Moving to an RV as a fallback as mentioned above just sounds insane to me, and I'd prefer not to retire at all rather than doing something like that. My job isn't nearly as bad as living in an RV - not even in the same galaxy of badness. That's why it's called personal finance. Living in an RV full...
by willthrill81
Mon Nov 11, 2019 3:19 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

There’s a thing going on here that someone touched upon, that I think for a large number of Bogleheads is the case: many of us don’t like the idea of a long grind down in nest egg value. The hypothesis is that 4% will SURVIVE a 30 year retirement. But the concern is to not merely survive. Lower wit...
by willthrill81
Mon Nov 11, 2019 2:36 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

For whatever it's worth - my wife and I will retire in our mid 50s and plan on a 4% withdrawal rate ***BUT*** we plan on using not the Trinity study method of withdrawals but a constant % of current portfolio. 4% will allow us to upgrade our lifestyle with discretionary spending that will be approx...
by willthrill81
Mon Nov 11, 2019 12:04 pm
Forum: Personal Investments
Topic: Windfall
Replies: 21
Views: 2081

Re: Windfall

I suggest using the $70k to pay down the mortgage, try to go into retirement debt free. +1 - No Debt = True Freedom, Go for it... :thumbsup Unless you can get guaranteed arbitrage on your mortgage (e.g. higher after-tax rate on a CD than your mortgage), retaining the mortgage in retirement increase...
by willthrill81
Mon Nov 11, 2019 11:48 am
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

Why would I take preemptively medicine for an illness that is historically very unlikely to occur when the medicine is expensive in terms of time lost and/or possibly reduces my quality of life, especially if contracting the illness (i.e. reducing one's discretionary spending) is far from fatal? Wh...
by willthrill81
Sun Nov 10, 2019 10:49 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

This is one of those questions where you really need to see the OPs portfolio and expenses before a detailed response for s/he can be given. Cash flow, health, expenses, desire for leaving a legacy and charitable giving all play a large role in ones response. Is this a bad deal for the retiree taki...
by willthrill81
Sun Nov 10, 2019 6:47 pm
Forum: Investing - Theory, News & General
Topic: Wait for Social Security - breakeven returns
Replies: 103
Views: 9023

Re: Wait for Social Security - breakeven returns

Also, are you aware that each year you delay starting SS benefits from your Full Retirement Age (FRA) to age 70, your monthly benefit will grow 8% for each year you wait (and the higher benefit will benefit you/your spouse for the rest of your life)? Can you guarantee that you can get those returns...
by willthrill81
Sun Nov 10, 2019 6:45 pm
Forum: Investing - Theory, News & General
Topic: Wait for Social Security - breakeven returns
Replies: 103
Views: 9023

Re: Wait for Social Security - breakeven returns

I'm not sure that depletion of the SS trust fund will impact the decision at all under current law because everyone's benefits, regardless of when they started claiming benefits, would be reduced by the same amount, about 21% IIRC based on the SSA's current estimates. Even if there is a 21% across ...
by willthrill81
Sun Nov 10, 2019 4:01 pm
Forum: Investing - Theory, News & General
Topic: Wait for Social Security - breakeven returns
Replies: 103
Views: 9023

Re: Wait for Social Security - breakeven returns

If instead you choose to model investing the money in bonds, or in T-bills, the return will be much lower and delaying claiming will appear superior. You will still need to contend with the risk associated with SS Trust Fund depletion. I have no idea how to model that, but ignoring it is almost cer...
by willthrill81
Sun Nov 10, 2019 2:36 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

Find most of these replies odd... in that it somewhat assumes that the money would be left to very young people (children/ young adults) .... which would be far from the norm. Much more likely an inheritance to be going to middle-aged / nearing retirement / in retirement descendants. By that point ...
by willthrill81
Sun Nov 10, 2019 11:24 am
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

Such thoughtful, interesting replies. Thank you all. I do hope to leave $$ for the kids and God willing, help with future grandchildren's educations and throw in some nice family vacations. But step one is doing everything possible to avoid being a burden down the road. Aside from the finances, I v...
by willthrill81
Sun Nov 10, 2019 11:02 am
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

Why would I take preemptively medicine for an illness that is historically very unlikely to occur when the medicine is expensive in terms of time lost and/or possibly reduces my quality of life, especially if contracting the illness (i.e. reducing one's discretionary spending) is far from fatal? Wh...
by willthrill81
Sun Nov 10, 2019 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Dental Insurance
Replies: 60
Views: 4996

Re: Dental Insurance

So many suggest a nearby dental school. Last time I checked into the only one in my area a couple of years ago, it was a minimum 1-2 year wait just to see anyone, with a whole LOT of red tape (an initial application, waiting period followed by 2nd application, etc.) first. I immediately gave up. Li...
by willthrill81
Sat Nov 09, 2019 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Early Financial Independence. - Healthcare costs
Replies: 65
Views: 5167

Re: Early Financial Independence. - Healthcare costs

Wow! Insurance at 240 a month!!! How did you luck out there? We were paying 1,250 a month for health insurance and dental through a retiree plan offered to teacher retirees in Washington. And there were still co-pays and deductibles! We are so looking forward to both of us being on Medicare. For 20...
by willthrill81
Sat Nov 09, 2019 8:33 pm
Forum: Personal Investments
Topic: Small value in 50-50 retirement portfolio
Replies: 10
Views: 856

Re: Small value in 50-50 retirement portfolio

I’m investing my parents retirement funds in 50:50 portfolio. I am doing a three fund and considering 5% REIT and 5% small value (vanguard small value index fund). Is small value even at 5% too aggressive for a retiree? Thank you! I'd say the opposite, which is that 5% slices really aren't enough t...
by willthrill81
Sat Nov 09, 2019 8:26 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

What's your opinion? Ages 54 and 52. Will 3% be OK going forward? Throw it all out there. I'd like to hear both sides. Currently living on interest and dividends, which is about 2.2% Are we sacrificing lifestyle enjoyment for paranoia, or a just a sense of safety? Of course the answer is no. 3% is ...
by willthrill81
Sat Nov 09, 2019 8:24 pm
Forum: Personal Investments
Topic: Retire at 50(ish) possible?
Replies: 38
Views: 5847

Re: Retire at 50(ish) possible?

Just to be clear, you will be a US resident and will have to have year around health coverage in the US. The individual mandate to have health insurance was removed in the last major tax law. That being said, U.S. residents getting health insurance for (1) less than a year and (2) for care received...
by willthrill81
Sat Nov 09, 2019 8:19 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

I think the larger question is "Spend it all vs. leave some behind for somebody/something that will benefit from it?" There is an implication in the OP that spending it all is discretionary. Obviously, many don't have a choice. It will all be spent on essentials and they will die broke. We have sev...
by willthrill81
Sat Nov 09, 2019 4:22 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

cautious wrote:
Sat Nov 09, 2019 4:20 pm
Please, What is a SWR?
A safe withdrawal rate. There are many threads discussing it, and it is also referenced in the Wiki.
by willthrill81
Sat Nov 09, 2019 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Disability and Financial Independence - Drop Coverage?
Replies: 25
Views: 1129

Re: Long Term Disability and Financial Independence - Drop Coverage?

I should add that if I Opt Out of LTD, I won’t be able to continue health insurance coverage with my employer should I have a long term disability... Not sure if that changes the analysis a bit. It seems pretty foolish to abandon health insurance considering how crappy a lot of the ACA plans are? S...
by willthrill81
Sat Nov 09, 2019 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Dental Insurance
Replies: 60
Views: 4996

Re: Dental Insurance

I guess this is more of a vent than anything else, but it would sure like to get the same fee schedule as the insurance company gets, and just pay in cash. Have you looked into the discount dental plans referred to further up the thread? They seemingly allow you to pay the same network rate that in...
by willthrill81
Sat Nov 09, 2019 2:58 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

Parents can provide many things, knowledge but knowledge or skills alone are not the liquid form of exchange in the modern world. Hence, the nature of the question. BTW, not a boomer! Given the choice between wisdom and money, wisdom is robustly superior. Just look at how lottery winners almost uni...
by willthrill81
Sat Nov 09, 2019 2:20 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 1878
Views: 195240

Re: U.S. stocks continue to soar!

While I'm not trying to turn this into yet another 'U.S. vs. ex-U.S.' thread, the recent relative performance of the two is interesting. U.S. stocks have continued to march upwards since 2018 while ex-U.S. has continued to languish. The trend of U.S. outperformance has certainly kept going. It will ...
by willthrill81
Sat Nov 09, 2019 2:13 pm
Forum: Personal Investments
Topic: Decision: 0% tax on capital gains or Roth Conversion
Replies: 9
Views: 602

Re: Decision: 0% tax on capital gains or Roth Conversion

Thank you all for your comments! I am in Texas, so no state income tax. I was leaning toward the Roth Conversion route. After reviewing your excellent comments, I will probably move that way in 2020. Now the only question is how much! If you can afford the taxes, doing so up to the top of the 12% b...
by willthrill81
Sat Nov 09, 2019 2:06 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

Since we can’t predict the future and we don’t want to run out of money in retirement, our children will inherit the family house and residual money. That's basically our goal as well. Charities will receive whatever is left in our HSA (due to the adverse tax treatment if inherited by a non-spouse)...
by willthrill81
Sat Nov 09, 2019 12:52 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 134
Views: 9625

Re: Spend It All vs. Leave $$ for the Kids

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent. My belief is that there is a balancing act between providing your children with the wisdom and character needed to do well in life and resources, financial ...
by willthrill81
Sat Nov 09, 2019 12:42 pm
Forum: Personal Investments
Topic: Decision: 0% tax on capital gains or Roth Conversion
Replies: 9
Views: 602

Re: Decision: 0% tax on capital gains or Roth Conversion

Just to add, the decision roughly comes down to this: would you rather have cash in hand or money in Roth accounts less the taxes that must be paid on the Roth contributions? This is driven mostly by factors unique to the individual.
by willthrill81
Sat Nov 09, 2019 12:19 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 262
Views: 16731

Re: Will we be OK at 3% WR?

Keeping your expenses as low as possible will help you fluctuate your withdrawal rate between a range that you feel comfortable with. Where you might run into some trouble is if your expenses dictate what your withdrawal rate needs to be. During a market correction, it is best to be in a place wher...