Search found 620 matches

by CnC
Sun Apr 21, 2019 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

I don't think your last point, highlighted above, is true. I believe the limiting series for the "4% rule" are the 30 year periods starting in the mid 60s (1966 being the worst), where the failure resulted mostly from slow deterioration of purchasing power over the next 15 years due to high inflati...
by CnC
Sat Apr 20, 2019 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

You don't have to work during the great depression, you can do something lucrative and decrease your SWR ahead of it. Huh? Do something "lucrative"? In the middle of the biggest economic meltdown in the history of the US? I think you would benefit from reading some history of this period. Just to p...
by CnC
Sat Apr 20, 2019 8:54 am
Forum: Personal Investments
Topic: Net Worth where it should be?
Replies: 49
Views: 6041

Re: Net Worth where it should be?

Your savings rate with a least a moderate allocation should put you in very good shape as you approach retirement. the magic of compounding with the added benefit of high savings takes time to bear fruit. You will start to feel the tail wind when the growth of your portfolio exceeds your yearly con...
by CnC
Sat Apr 20, 2019 8:52 am
Forum: Personal Investments
Topic: Am I supposed to start backdoor Conversation now?
Replies: 11
Views: 1176

Re: Am I supposed to start backdoor Conversation now?

Basically if you are going to be Roth converting at 24% you are gaining very little other than paying taxes so your heirs don't have to. Based on your income your RMD's likely will never push you into the 32% bracket. Paying $0 taxes on long term capital gains is better than Roth conversions though ...
by CnC
Sat Apr 20, 2019 8:45 am
Forum: Personal Investments
Topic: Am I supposed to start backdoor Conversation now?
Replies: 11
Views: 1176

Re: Am I supposed to start backdoor Conversation now?

If you are getting 92k in dividends? And 40k from your wife's job? There are two choices here. If you can somehow stay in the sub 77,000 Magi you pa 0% on long term capital gains. If this is the case I would tax gain harvest like crazy until I just that cliff. Because it basically gives you a free s...
by CnC
Fri Apr 19, 2019 11:59 pm
Forum: Personal Investments
Topic: Fun with FIRECalc
Replies: 20
Views: 1503

Re: Fun with FIRECalc

Does anyone ever run FIRECalc with success rates between 50%-80% to see what those outcomes look like? I ran 50%, 60%, 70% and 75% and was quite surprised by the results. I wouldn't plan my retirement using these success rates but there seems to be a reasonable chance they may be what I end up gett...
by CnC
Fri Apr 19, 2019 11:49 pm
Forum: Personal Investments
Topic: Net Worth where it should be?
Replies: 49
Views: 6041

Re: Net Worth where it should be?

I know this is all depends on a lot of different factors, but I'd like to get an idea how I am doing. Net Worth: roughly 250k Income:55-60k Age: 33 Investments: 130k (mostly in VTSAX) I have a large amount of money in high yield savings account I plan on using for a house. I don't mind having that ...
by CnC
Fri Apr 19, 2019 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

I see this thread still going on. I read most of the posts and this was touched on but never really covered. The 4% rule is probably more conservative than people really realize. For example if I have 2 million and want to spend 80,000 a year and retire at 50 that 95% success rates accounts for me w...
by CnC
Fri Apr 19, 2019 5:04 pm
Forum: Personal Investments
Topic: Pensions and early retirement issues
Replies: 4
Views: 707

Re: Pensions and early retirement issues

Well I don't plan on changing my saving rate. We are saving what we can and will continue to do so. The question is with my 457. It is pre tax, but it also has pretty high fees my sp 500 plan has a 1% expense ratio. If I have to fund 10 years of spending without touching our pre tax money I may redu...
by CnC
Fri Apr 19, 2019 2:53 pm
Forum: Personal Investments
Topic: Pensions and early retirement issues
Replies: 4
Views: 707

Pensions and early retirement issues

Hey all CnC here and I have a question about the deferring of my pension. I am currently vested the pension is well funded is protected by law to be paid in full so the pension is as guaranteed as things can be in life. Situation below: I should have substantial investment savings of more than 25x e...
by CnC
Thu Apr 18, 2019 6:23 pm
Forum: Personal Investments
Topic: 100% Equity IRA
Replies: 19
Views: 1106

Re: 100% Equity IRA

If it is the bonus you are interested in, find out when will the bonus post after you transfer assets, and if there is any bonus recapture. Also check with your 401k if they would accept incoming rollovers from a Rollover IRA. If so, grab the bonus then roll the funds right back into your current 4...
by CnC
Wed Apr 17, 2019 11:10 pm
Forum: Personal Investments
Topic: 100% Equity IRA
Replies: 19
Views: 1106

Re: 100% Equity IRA

If it is the bonus you are interested in, find out when will the bonus post after you transfer assets, and if there is any bonus recapture. Also check with your 401k if they would accept incoming rollovers from a Rollover IRA. If so, grab the bonus then roll the funds right back into your current 4...
by CnC
Wed Apr 17, 2019 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

You are vastly misunderstanding what a Spartan lifestyle is. If one spends more than the average American family it is by very definition not a Spartan lifestyle. I don't know. What's the definition of spartan ? Perhaps is certain bubbles planning for 80,000 expenses on a 200,000 a year income is b...
by CnC
Wed Apr 17, 2019 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

X is spending and always has been. The great thing about using multiples and percentages is that it doesn't matter if you want to live a spartan lifestyle or a luxurious one. The numbers don't change. Just because some FIRE people want to live a spartan lifestyle I'm not sure why that matters. I pl...
by CnC
Wed Apr 17, 2019 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

. . . means my Y must be 35x the yearly average of all those things + all other expenses. Many of us calculate what our actual required expenses are and assume x% of fun money extra to enjoy each year and she a few years of fun money to buy the newest toy we want. This keeps us at a historically Ro...
by CnC
Wed Apr 17, 2019 3:20 pm
Forum: Personal Investments
Topic: REIT's recent pullback
Replies: 14
Views: 1738

Re: REIT's recent pullback

My reit's are doing wonderful so I'm not sure your meaning.

O and NNN are still two of my biggest winners.
by CnC
Wed Apr 17, 2019 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

Yes, if a person has significant flexibility (e.g. can reduce their withdrawals by 30% or more) in the event of poor portfolio performance, then 25x is probably fine for a younger retiree. Which would indicate that they "retired" with around 35X the baseline amount, wouldn't it? [Math: $70K expense...
by CnC
Wed Apr 17, 2019 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

Yes, if a person has significant flexibility (e.g. can reduce their withdrawals by 30% or more) in the event of poor portfolio performance, then 25x is probably fine for a younger retiree. If one does not withdraw at all any portfolio is fine for any length of time. The point of (good) planning is ...
by CnC
Wed Apr 17, 2019 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

And you would be no worse than every other singe person who lost their job during the recession/depression. You do realize that come 2025 when I am 40 and I retire at 40 and you are however old you are and still working and the economy crashes and we both are jobless the fact I retired and you were...
by CnC
Wed Apr 17, 2019 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

Just one more note to all the people who are placing too much weight on a great depression crash the year or 5 after you retire. You are arguing an unbalanced equation. That leads to some extremely irrational thought. I view dying before I retire as a failure. Certainly more of a failure than going ...
by CnC
Tue Apr 16, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

Just to play the devil's advocate, common sense dictates that you retired in 2000 or 1929 at 45 and watch your stocks lose 50% of their value immediately after you simply get a new job and continue like literally every other 45 year old out there. Retirement at 45 is the same as quitting a job, ove...
by CnC
Tue Apr 16, 2019 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 38960

Re: Mr. Money Mustache, SWR, and equity allocation

What I don't want to happen is to quit my job at age 40, throw everything into stock funds, draw 5% a year and assume I'll be okay. But isn't that essentially what MMM says? MMM is wrong. You would have been totally broke if you had done this right before the Great Depression, and you'd be close to...
by CnC
Tue Apr 16, 2019 3:29 pm
Forum: Personal Investments
Topic: How often do you check up on your investments?
Replies: 35
Views: 2100

Re: How often do you check up on your investments?

Daily, but I rarely do anything. I mainly plan where my next buy will be and dream of being FI by 45.

I once a week to twice a month randomly plug my numbers into best case worse case and realistic scenarios to see how I am doing against what I originally planned.
by CnC
Mon Apr 15, 2019 11:03 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6959

Re: If you have plenty of money, why not 100% stocks in retirement?

Even more baffling is to ignore the worst outcomes so far, assuming they cannot happen again. Once we know they are possible, why pretend that repeats cannot occur? Because coming up with a solution that is worse 99 out of 100 possible outcomes is a bad idea. Imagine if you lived your life that way...
by CnC
Mon Apr 15, 2019 10:54 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6959

Re: If you have plenty of money, why not 100% stocks in retirement?

I agree whole heartedly. If you have plenty of money no reason to be 100 percent stocks. But plenty of money differs greatly person to person. If you have 50x your desired (not required) expenses then sure go 100% stocks live off of dividends of the tsm not of some dividend aristocrat bundle prepare...
by CnC
Fri Apr 12, 2019 8:59 pm
Forum: Personal Investments
Topic: What % bonds for early retirement
Replies: 41
Views: 3584

Re: What % bonds for early retirement

"Note that an expectation of 7% annual return over the next decade is probably going to be considered optimistic by many." 5 Years ago the same thing was said and we have had a great last 5 years. Sure it will go down, but its silly to assume to have any idea what the next 10 years hold. Jack Bogle...
by CnC
Fri Apr 12, 2019 6:44 pm
Forum: Personal Investments
Topic: What % bonds for early retirement
Replies: 41
Views: 3584

Re: What % bonds for early retirement

Just did early retirement at 55 in January, and am at ~57% Fixed Income, which includes CDs and traditional bond funds. Note that an expectation of 7% annual return over the next decade is probably going to be considered optimistic by many. We're 10+ years into the current bull market, and expectat...
by CnC
Wed Apr 10, 2019 6:06 pm
Forum: Personal Investments
Topic: Clean up of 100+ stocks in taxable
Replies: 32
Views: 2629

Re: Clean up of 100+ stocks in taxable

Why not just make it simple and sell off all the stocks? It sounds like there are gains and losses, short and long term, so there won't be a huge tax bite. Then just go to a 2-or-3 fund portfolio and let it ride. (And #3 in your list is market timing; and the worst kind because it's with individual...
by CnC
Wed Apr 10, 2019 5:57 pm
Forum: Personal Investments
Topic: Borderline too high 401k fees?
Replies: 21
Views: 1048

Re: Borderline too high 401k fees?

I would start a VG IRA to roll my current assets into for sure. IRS regulations prohibit the in-service rollover of employee elective contributions prior to age 59 1/2. IRS regulations allow but do not require the ins-service rollover of vested employer contributions prior to age 59 1/2. Almost all...
by CnC
Wed Apr 10, 2019 5:39 pm
Forum: Personal Investments
Topic: Investments ratio? What is realistic and what is ideal?
Replies: 4
Views: 328

Investments ratio? What is realistic and what is ideal?

Hey all, CnC here and I was just looking at my taxable my pre-tax and my Roth ratio. It has got me thinking what is the best ratio to shoot for and what is realistic to get. For us this will be for those who plan to retire moderately early. Right now we are approximately 50% taxable 38% pre tax and ...
by CnC
Wed Apr 10, 2019 5:13 pm
Forum: Personal Investments
Topic: Defer Pension?
Replies: 10
Views: 795

Re: Defer Pension?

A few questions, 1) what age does this pension start? 2) what tax bracket are you currently in (when you get the lump sum/ start the pension) 3) what are your future plans concerning work, wages and retirement. 4) do you already have a pretax ira? If not this can prevent you from ever making backdoo...
by CnC
Wed Apr 10, 2019 7:35 am
Forum: Personal Investments
Topic: Should I leave Betterment?
Replies: 13
Views: 2242

Re: Should I leave Betterment?

[*] Liabilities - Bad debt: $0. Debt: $95K student loans at 3% and 4.8% interest, $10K auto loan at 0% interest. [/list] All debt is bad debt. Student loans are the worst debt imaginable. Car loans are ridiculous, it's a depreciating asset. Pay off your debts ASAP. Why are car loans ridiculous? Kee...
by CnC
Sat Apr 06, 2019 10:45 am
Forum: Personal Investments
Topic: For those with most retirement savings in tax deferred accounts
Replies: 18
Views: 3000

Re: For those with most retirement savings in tax deferred accounts

You don't have to spend RMDs, just pay tax on them, so there's no relationship between RMDs and SWRs, except to the extent that the tax paid has a marginal effect on portfolio size—i.e., unless you're paying much so more tax on the RMD amount above what you were planning to take anyway that it has ...
by CnC
Sat Apr 06, 2019 10:39 am
Forum: Personal Investments
Topic: Unexpected salary increase. No longer qualify for Traditional IRA?
Replies: 12
Views: 828

Re: Unexpected salary increase. No longer qualify for Traditional IRA?

What other income do you have, what is your filing status? 80,000 should not price you out of a traditional ira it is based off of your magi not your salary they can be vastly different.

Do you have any hsa or 401k options?
by CnC
Sat Apr 06, 2019 10:35 am
Forum: Personal Investments
Topic: high dividend investments
Replies: 34
Views: 2450

Re: high dividend investments

Investors can do as they please, but dividends do not increase one's wealth . PJW Also 100% stocks return better than any bond mix. But people still carry bonds, even when they are not retired and withdrawing. The concept of dividend stocks is the piece of mind it gives you correct or not there are...
by CnC
Wed Apr 03, 2019 12:49 pm
Forum: Personal Investments
Topic: Mortgage as negative bond = YIKES! Should I panic?
Replies: 37
Views: 3112

Re: Mortgage as negative bond = YIKES! Should I panic?

My retirement account has $890,000 in it @ 60/40. I like 60/40 for my risk tolerance. Age 53, 5 years until retirement (hopefully). My mortgage balance is $578,000 (3.875%, 37% marginal fed tax rate). If the mortgage is a negative bond, my actual AA is 177/0. I am leveraged to the hilt! What to do ...
by CnC
Wed Apr 03, 2019 11:41 am
Forum: Personal Investments
Topic: Managed bond fund in 401k??
Replies: 5
Views: 280

Re: Managed bond fund in 401k??

Hey all, will be adding my first bond fund to our portfolio this fall. It will be in my wife's 401k for tax purposes. But the only real choice is "megacorp" Total Return Bond Fund which is made up of: PIMCO Total Return 29.94% Western Asset Core Plus Bond I 29.34% "Company corp" Sgit Debt Nl U/A 28...
by CnC
Wed Apr 03, 2019 9:31 am
Forum: Personal Investments
Topic: Managed bond fund in 401k??
Replies: 5
Views: 280

Managed bond fund in 401k??

Hey all, will be adding my first bond fund to our portfolio this fall. It will be in my wife's 401k for tax purposes. But the only real choice is "megacorp" Total Return Bond Fund which is made up of: PIMCO Total Return 29.94% Western Asset Core Plus Bond I 29.34% "Company corp" Sgit Debt Nl U/A 28....
by CnC
Tue Apr 02, 2019 3:08 pm
Forum: Personal Investments
Topic: Recharacterize from Roth IRA to Traditional?
Replies: 4
Views: 229

Re: Recharacterize from Roth IRA to Traditional?

May want to look into the new tax bill law. I thought there were some limits on Roth recharacterizations from Roth to traditional.

https://www.forbes.com/sites/jamiehopki ... on-limits/
by CnC
Tue Apr 02, 2019 2:12 pm
Forum: Personal Investments
Topic: Fidelity Full View?
Replies: 32
Views: 2366

Re: Fidelity Full View?

I am fiddling around with Fidelity Full View. I have all my brokerage accounts from Vanguard and Fidelity entered. I like how I can see asset allocation all in one place. Does anyone use Full View? Do you use it just to track investments? Or do you find other things useful, like budgeting and track...
by CnC
Tue Apr 02, 2019 1:36 pm
Forum: Personal Investments
Topic: 32 year old planning on retiring some time between 45 and 55 planning?
Replies: 6
Views: 829

Re: 32 year old planning on retiring some time between 45 and 55 planning?

You sound like your eyes are wide open. You always have the option to work longer, too. You're poised to do fine. Ok good. I have read plenty at MMM and the like since I am very interested in the concept of Fire. But I too think that the assumptions that are made in that crowd are far more optimist...
by CnC
Tue Apr 02, 2019 1:13 pm
Forum: Personal Investments
Topic: 32 year old planning on retiring some time between 45 and 55 planning?
Replies: 6
Views: 829

Re: 32 year old planning on retiring some time between 45 and 55 planning?

It's all about what you'll be spending, what you have saved and what you're going to get from defined benefit plans and SS. Some things worth looking at that it seems the MMM crowd very often just ignores: College for kids: Costs continue to go up faster than inflation. You talk about "state manage...
by CnC
Tue Apr 02, 2019 12:01 pm
Forum: Personal Investments
Topic: 32 year old planning on retiring some time between 45 and 55 planning?
Replies: 6
Views: 829

32 year old planning on retiring some time between 45 and 55 planning?

Hey all CnC here just was checking if there is anything I should be seriously looking into since I am 13-23 years from retirement. I realize it seems kind of foolish a 32 year old asking retirement questions but I see many 50 year olds asking questions here asking questions when they are planning on...
by CnC
Tue Apr 02, 2019 10:30 am
Forum: Personal Investments
Topic: Too much company stock..what to do?
Replies: 13
Views: 615

Re: Too much company stock..what to do?

Jack FFR1846 wrote:
Tue Apr 02, 2019 9:34 am
Assume it's going to zero tomorrow. Sell it all today before that happens.
This is terrible advice.
by CnC
Mon Apr 01, 2019 1:33 pm
Forum: Personal Investments
Topic: Good idea to change the expected real returns in my model
Replies: 47
Views: 1733

Re: Good idea to change the expected real returns in my model

Based off everything I have seen 1% is about as realistic as 6%. Real growth over the next few decades. If you want to include it that's fine but it will not serve much purpose. I personally have calculated -1% real return just for grins but 25% 50% 75% of historical averages were the ones I settled...
by CnC
Sun Mar 31, 2019 10:11 pm
Forum: Personal Investments
Topic: Mega Backdoor roth questions
Replies: 17
Views: 1079

Re: Mega Backdoor roth questions

thanks guys. Things are definitely more clearer than More research leads me to this in my plan There is a withdrawal option that takes me through options - It says I have X eligible for rollover. Screen 1 After Tax Source Withdrawal Amount available based on your specific plan rule - $XXXX (this ma...
by CnC
Sun Mar 31, 2019 4:09 pm
Forum: Personal Investments
Topic: Year 6 as a Boglehead: Stay the Course!
Replies: 4
Views: 1310

Re: Year 6 as a Boglehead: Stay the Course!

I have been wanting to do one of these im 2 years a boglehead. It is amazing how far I have come, since i started. Granted job success has helped quite a bit. My wife and I are in a very similar situation however we went about it very differently, we are 32/33 have 2 children with a third on the way...
by CnC
Thu Mar 28, 2019 7:16 pm
Forum: Personal Investments
Topic: Why would one NOT do Roth Conversions?
Replies: 22
Views: 2707

Re: Why would one NOT do Roth Conversions?

I have no clue why one wouldn't.

The only time I might not is the time before social security kicks in and I can use Roth's to supplement my pension so I have to pay no capital gains.
by CnC
Wed Mar 27, 2019 4:54 pm
Forum: Personal Investments
Topic: 4% rule? Never touch principle?
Replies: 65
Views: 5838

Re: 4% rule? Never touch principle?

I think I understand what AppleJack123 is saying. If I have $1,000,000 in my 401k's Stable Value which has a 3.5% annual crediting rate. If I have a annual SWR of 3.5%, I should theoretically always have $1,000,000 in my account. I think its a fair question. No you will not theoretically or realist...