Search found 4432 matches

by heyyou
Tue Mar 19, 2024 2:07 am
Forum: Personal Finance (Not Investing)
Topic: When did you retire? Simple questions
Replies: 44
Views: 6363

Re: When did you retire? Simple questions

My $40K pension started in early retirement was equal to the remainder of my post-tax job income, after my max retirement contributions went into our retirement savings accounts. We were unknowingly practicing at living on our future early retirement income, when we were diligently saving prior to our early retirements.

Retired at 56
Job burn out
Married
Spending has varied: Retirement started with barely $40K of no-COLA pension, then Roth conversions ended when Social Security added another $40K at age 70, and now with the addition of sustainable portfolio withdrawals of yet a third annual $40K: pension, SS, portfolio withdrawals.
by heyyou
Sun Mar 17, 2024 12:47 am
Forum: Personal Finance (Not Investing)
Topic: Estimating RMD Taxes for Retirement Planning
Replies: 15
Views: 1808

Re: Estimating RMD Taxes for Retirement Planning

(1) Pay some tax on Roth conversions early in retirement, and (2) store only bond funds in tIRA (if suitable), to slow the growth there due to the inevitable future taxes on your RMDs after age 70, that are based on your annual tIRA balance after age 70.

I don't think of my RMDs as income for spending, I just see that money as being similar to the withholding tax that was paid during each work year.
by heyyou
Fri Mar 15, 2024 3:26 am
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 120
Views: 11117

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

Steadily living below your means for decades will buy your freedom from needing to continue to work for money, and that is good practice at living on your reduced income in your early retirement.

Long, long ago, I could see that I only needed to work until I could afford to not work. I saved to invest from near the start of my career. Being acclimated to spending less allowed us to pay off the mortgage, then retire early. We valued our leisure time together, more than whatever stuff the extra money would have bought for us.
by heyyou
Wed Mar 13, 2024 7:57 pm
Forum: Personal Investments
Topic: SS is insufficient, very little savings, what's the best option
Replies: 49
Views: 7794

Re: SS is insufficient, very little savings, what's the best option

Likely beyond their imaginations, but I would emigrate to western Panama for low cost housing among many other Americans in similar circumstances who are living on only their Social Security incomes . Sell the US house for a permanent emergency fund only after living in Panama for at least a year in order to experience both the full wet and dry seasons at any one chosen location. Panama's tropical heat at sea level is ameliorated at moderately higher elevations. Panama uses US currency for its legal tender, but does mint their own coins. Boquete Panama has grown more expensive due to its popularity, but there are other smaller towns with similar altitude based weather, that are the affordable destinations for new expats. YouTube is awash in...
by heyyou
Wed Mar 13, 2024 6:23 pm
Forum: Investing - Theory, News & General
Topic: Any investors from the 1981 - 1984 time period here???
Replies: 36
Views: 4324

Re: Any investors from the 1981 - 1984 time period here???

My 401k opened in 1980? just after I had lost my entire inheritence of $50K greedily invested in a small limited partnership of farmland in the path of urban growth, that failed. I was pleased to see that my index funds merely fluctuated in value.
by heyyou
Tue Mar 12, 2024 12:35 am
Forum: Personal Finance (Not Investing)
Topic: Weekend home vs trading up on the primary home
Replies: 15
Views: 1807

Re: Weekend home vs trading up on the primary home

It is common in my mountain town for some older retirees to eventually need to move to a lower elevation, due to heart or lung problems.

OP, would a storage unit near either of your locations be helpful?

Consider renting an apartment for a while in the remote location, just to spend more time in the community before buying there.
by heyyou
Mon Mar 11, 2024 10:46 pm
Forum: Personal Investments
Topic: Retiree close to RMD Help with Portfolio and advice
Replies: 14
Views: 1709

Re: Retiree close to RMD Help with Portfolio and advice

In your traditional IRA (tIRA), try to store low performing assets (bond funds) there in order to subdue its long term growth, since that will reduce your future taxes on your upcoming annual Required Minimum Distributions (RMDs) from that IRA category. Your future RMDs are also the reason to look into doing Roth conversions from that account, even though those conversions into your Roth IRA (RIRA) are taxable withdrawals from the tIRA. Now there are calculators to suggest the annual amounts to convert. I just annually converted to the top of my current tax bracket each year from 2006 to 2019. For you, there is not time for large enough conversion amounts to help before you start your RMDs. If you don't do your own taxes, ask your tax perso...
by heyyou
Sun Mar 10, 2024 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6025

Re: How to Estimate Return Rates for Retirement Planning

On the topic, my short answer is I use my age-based RMD percentage of each recent entire annual portfolio value (plus dividends and interest) as my withdrawal method, so I am just relying on the prior long term historical return info. No, I do not have a specific average percentage number for the OP to use, but the OP can research what his/her (age based) initial withdrawal amount would be when using the RMD spending method that does include spending annual dividends and interest. This portion is about retirement spending instead of rate estimations, but I do hope that it shows some info for the OP's planning: I'm using a variable spending method to boost portfolio longevity in my retirement, so I spend more after the good annual returns an...
by heyyou
Sat Mar 09, 2024 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Pulling Out Retirement Early - Thoughts
Replies: 15
Views: 3067

Re: Pulling Out Retirement Early - Thoughts

Just an untutored opinion, but with your work history, can you get a small loan for just a few years, at a much better rate from your bank/credit union?
by heyyou
Sat Mar 09, 2024 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: What would you have done differently if you could go back and restart your financial journey?
Replies: 68
Views: 5597

Re: What would you have done differently if you could go back and restart your financial journey?

For the poster above, the RMD portfolio spending plan applies your annual RMD % to your entire portfolio value plus spending annual dividends and interest. There are RMD % for persons of all ages due to inherited RMDs that require annual withdrawals, regardless of the recipient's age. Back on topic: My younger self was impatient for more portfolio growth so I greedily tried slice and dice for decades, while constantly watching each recent fund return. Now I can see that my savings rate and my time in the market, were fully adequate for my (flexible) early retirement goal. Thus, I could have both skipped much of that steady concern about portfolio performance during my work years, and just used a pair of broad market funds in each account. P...
by heyyou
Fri Mar 08, 2024 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Can I splurge on a family vacation to Hawaii?
Replies: 56
Views: 4799

Re: Can I splurge on a family vacation to Hawaii?

Do a search here at Bogleheads for Hawaii info.
Yes, go to Hawaii, but fly to Hilo or Kona to avoid Honolulu as a big city with a nice climate and over-crowded beaches. Go to Big Island, the one named Hawaii. DW and I would fly to Kona, get the rental car, then drive to more economical Hilo. We liked the rural road to Hilo.
by heyyou
Tue Mar 05, 2024 9:29 pm
Forum: Personal Investments
Topic: the psychological value of "paycheck replacement." Any role for annuities or TIPS ladders?
Replies: 54
Views: 6399

Re: the psychological value of "paycheck replacement." Any role for annuities or TIPS ladders?

I like the COLA boosts on my delayed-until-70 Social Security. Do look into the various choices of what will max your combined SS long term, just because you like its steady income.

I use the RMD portfolio spending plan since it annually adjusts my withdrawal amount to my recent annual portfolio value. I do one withdrawal a year into my savings account at the bank for them to do the steady monthly transfer into my checking account. Consider shopping for a brokerage that will offer monthly transfer service into a checking account, even if it costs a small fee. Bargain for no fee since your asset level is high.
by heyyou
Tue Mar 05, 2024 6:25 pm
Forum: Investing - Theory, News & General
Topic: Alternative Asset Classes
Replies: 12
Views: 1290

Re: Alternative Asset Classes

Risk and Reward dictate the returns, with the good rewards being very well-publicized.

In 1980, I invested my inheritance in a leveraged, limited partnership buying farmland in the path of real estate development. My initial investment was mid-four figures and it was near doubled after a few months, so I put all of the money into the next one, and it failed in the real estate bust.

I haven't looked at what $50K in index funds in 1980 would be worth now, likely more than what I have.
by heyyou
Tue Feb 20, 2024 5:32 pm
Forum: Personal Consumer Issues
Topic: What inferior good do you love?
Replies: 232
Views: 25546

Re: What inferior good do you love?

WalMart deli egg rolls as a substitute for a candy bar or other snack food, not considered as good Asian food. I eat them immediately, standing in the store's parking lot.
by heyyou
Tue Feb 20, 2024 4:35 pm
Forum: Personal Investments
Topic: Does it make sense to tilt to VGT/QQQ when S&P 500 already has a large tilt towards tech?
Replies: 38
Views: 4957

Re: Does it make sense to tilt to VGT/QQQ when S&P 500 already has a large tilt towards tech?

A previous stock crash, perhaps triggered by the over-heated tech sector, delayed my retirement and scared me into working longer, just due to my fear of it repeating.
From a Google search:
How long did it take for the stock market to recover after year 2000?
A milder crash will typically take less time to recover from than a severe crash. For example, it took the stock market just over two years to recover from the 1987 stock market crash. However, it took the market almost six years to recover from the dot-com bubble burst in 2000.
Yes, I currently own the market weight of tech in my equity exposure, but not more than that.
by heyyou
Tue Feb 20, 2024 3:16 pm
Forum: Personal Investments
Topic: Need advice about real estate investment
Replies: 18
Views: 1947

Re: Need advice about real estate investment

My second worst investment was being a landlord. It was a sometimes second job and I was not tough enough with my renters, nor did I have the handyman skills to quickly remedy problems at the property while working 55 hours a week at my well-paid job. The OP's $100K parental gift is just not suitable for her becoming a distant landlord.

Keep what you can of the gift, and return the other portion if you do not put that money into paying down your own condo. Maybe keep the entire gift for a few years, just as a buffer for your own mortgage payment.
by heyyou
Fri Feb 16, 2024 9:34 pm
Forum: Personal Investments
Topic: Retirement Decisions Regarding SS and Roth Conversions
Replies: 14
Views: 1963

Re: Retirement Decisions Regarding SS and Roth Conversions

No data, just my opinion: My Roth conversions started in 2006 when I was retired and 56, now the growth in my all-stock RIRA is the bright spot in my portfolio. Convert all you can, maybe even a little more than what some recommend, since the long term growth that is tax free, is so very welcome. Perhaps I've forgotten the pain of paying that extra tax in those pre-Social Security years.
by heyyou
Fri Feb 16, 2024 6:17 am
Forum: Personal Finance (Not Investing)
Topic: Continued tIRA Growth Undermines Roth Conversion Plan - A Real Life Example
Replies: 81
Views: 7802

Re: Continued tIRA Growth Undermines Roth Conversion Plan - A Real Life Example

Thank you to Bogleheads for teaching me about Roth conversions to be done in early retirement, and to store my bond funds in my tIRA just to lessen the future taxable growth there while still preserving most of the asset value.

The OP is at an asset/retirement income level where the tax advice for retirees with lower incomes, does not apply to his situation. Has someone published about retirees with similar circumstances to his? My opinion is that some CFAs would, just to attract those clients.
by heyyou
Mon Feb 12, 2024 11:15 pm
Forum: Investing - Theory, News & General
Topic: Understanding 4% rule
Replies: 41
Views: 3888

Re: Understanding 4% rule

In 1995, the 4% Rule was far better than all of the previous unresearched spending suggestions from famous mutual fund managers. 4% SWR was the first of the thoroughly researched spending plans, so salute Bengen for his pioneering work, then use a plan that annually adjusts each year's withdrawal amount to your most recent annual portfolio value. The certainty of spending an inflation buffered amount for 30 years without ever considering your recent portfolio value, sounds attractive but that method has both the risks of overspending and under-spending. My father was in the 1968 cohort who would have gone broke if he had blindly used 4% SWR. The opposite can also be true. A few, lucky 4% SWR retirees would have too much left over if they do...
by heyyou
Wed Feb 07, 2024 3:28 pm
Forum: US Chapters
Topic: Are any BH's not wealthy?
Replies: 165
Views: 25662

Re: Are any BH's not wealthy?

Short answer: Enough can be saved for a comfortable retirement by living below your means for a few decades. At least, that's what I and DW accomplished. Tedious long version: I am a college dropout. At age 25, I started 30 years of entry level, blue collar labor at a package delivery business. My formative financial event was getting laid off for six weeks, a year after having gotten a mortgage. Upon returning to work, I saved as much as possible from my pay, including most of my annual COLA pay increases, for the next 27 years, while maxing my 401k that opened in 1981, all for my early retirement in late 2005. My max annual pay during my work years was mid-$60,000. The trifecta has been my no-COLA pension, plus a similar amount of annual ...
by heyyou
Mon Feb 05, 2024 11:32 pm
Forum: Personal Consumer Issues
Topic: Best & Worst "Mid-Life Crisis" expenditures
Replies: 129
Views: 24369

Re: Best & Worst "Mid-Life Crisis" expenditures

Retired at 55 from a job I didn't like, into the best years of my life.

Having grown up on the flat prairie east of the Rocky Mountains, then lived only in Arizona as an adult, the Big Island of Hawaii was a revelation for us. In early retirement, we went to Hilo Hawaii every year in October, between the busy seasons. DW, an avid gardener, loved the exotic native plants there. Hapuna Beach is steadily on lists of the ten best US beaches. A mop handle from the Hilo Goodwill store was used to dip into red hot, liquid lava. In "Alice in Wonderland", Dorothy turns to her dog and says "Toto, I think we're not in Kansas, anymore."
by heyyou
Sun Feb 04, 2024 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: When to Start Soc Sec
Replies: 61
Views: 6812

Re: When to Start Soc Sec

I waited until 70 to start SS.
The COLA on my delayed (higher) SS payments is attractive to me. With wise advice from Bogleheads poster Celia, annual Roth conversions were done in my retirement years prior to starting SS. The growth in my all stock Roth IRA has been pleasant, while my RMDs are smaller in my mostly bonds tIRA. No, I haven't done a precise math/income comparison of delaying or not delaying SS, but I'm very happy with my results.
by heyyou
Wed Jan 31, 2024 11:20 am
Forum: Personal Consumer Issues
Topic: How has your Health Changed after Retirement; What are you doing to Stay Healthy?
Replies: 100
Views: 10095

Re: How has your Health Changed after Retirement; What are you doing to Stay Healthy?

Wearing a light, weighted vest has boosted my exertion when walking on softer surfaces than concrete and pavement. Start with Walmart's 8 pounder then work up to the 16#. Do wear work shoes with thick soles intended for standing all-day, instead of lighter running shoes that will wear down sooner.
by heyyou
Tue Jan 30, 2024 2:50 am
Forum: Personal Finance (Not Investing)
Topic: Anyone wished they had worked a few more years before retiring?
Replies: 89
Views: 14582

Re: Anyone wished they had worked a few more years before retiring?

Most of us don't realize how cool retirement is until we retire. At age 55.5, I retired just to get away from my job, into what became the best years of my life. My unexpected retirement activity was backpacking solo into a very rugged, nearby federal wilderness area just to do volunteer hiking trail maintenance. The then new, ultralight backpacking equipment craze was very helpful, as was hanging a hammock for comfortable sleeping. The problem is that according to it (the joint life expectancy table) for a 55 year old couple there is about a 15% chance that one of them will die before they are 65 which is a sobering thought. Then that occurred in my retirement, (EXPLETIVE) cancer! My suggestion for the OP is to retire to spend more time w...
by heyyou
Fri Jan 26, 2024 9:09 am
Forum: Personal Consumer Issues
Topic: What are some of the things that improved YOUR quality of life?
Replies: 254
Views: 41960

Re: What are some of the things that improved YOUR quality of life?

Marriage to the right person Early retirement Retirement living near my favorite recreation: volunteering to backpack into the nearby mountains to do hiking trail maintenance. Long ago, I transferred out of the city to work in a small town near the mountains, WHERE I MET AND MARRIED MY WIFE who happened to be similarly frugal. For 25 years, we saved diligently for early retirement, so we were somewhat acclimated to the new, reduced income level, prior to retiring. Passive investing as recommended at Bogleheads.org Retirement spending based on my RMD percentage of each recent annual portfolio value plus spending dividends and interest. Those annual income adjustments boost portfolio longevity so I welcome them, knowing that I am neither over...
by heyyou
Thu Jan 25, 2024 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Most popular boglehead withdrawal strategy
Replies: 117
Views: 12896

Re: Most popular boglehead withdrawal strategy

Safe maximum - RMD rate applied to all assets intended for retirement income plus amount of last year's dividends and interest from those assets. CAN RETIREES BASE WEALTH WITHDRAWALS ON THE IRS’ REQUIRED MINIMUM DISTRIBUTIONS? Same as poster Bobcat above, I'm using the RMD spending plan from Sun and Web at Boston College's Center of Retirement Research. It consists of my annual RMD percentage of my recent portfolio value plus spending annual dividends and interest. I like the slightly variable income since that is adjusting each portfolio withdrawal to my recent annual portfolio value. I do have a no COLA pension plus delayed-to-70 Social Security as a partial buffer for my pension's lack of COLA. https://crr.bc.edu/wp-content/uploads/2012...
by heyyou
Mon Jan 22, 2024 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Does it still make sense to do Roth conversions?
Replies: 13
Views: 2106

Re: Does it still make sense to do Roth conversions?

This is just my untutored, not data-based opinion:
Now in my RMD years, I'm so pleased with the growth of my all-stock Roth IRA, that I wish that I had paid more tax on larger Roth conversions in my pre-RMD years. So my suggestion is not based on limiting the tax paid, it is based on enlarging your all-stock RIRA. This year, I will ask my tax prep person about doing annual, barely 4 digit Roth conversions just to slowly add more to my RIRA.

For those who are still working, few of which are likely to read this thread, do consider the long term, future tax-free growth of your all-stock Roth IRAs, not just the extra annual tax that is due when acquiring each one.
by heyyou
Sun Jan 21, 2024 5:56 pm
Forum: Personal Investments
Topic: Early Retirement Plan - Age 38 w/over $2 million
Replies: 120
Views: 28644

Re: Early Retirement Plan - Age 38 w/over $2 million

For the OP: Go for it. Annually spending some tiny fixed percentage of each recent portfolio value seems like a good plan. Consider taking community college classes on new technologies during the hours that your young kids are in their classes, then you do your homework while the kids do theirs. If you do need to get a job in the distant future, you can return to school to brush up your skills and your by then college-educated kids might help you with your homework. No, you will not ever return to your current level in your industry, but you will remain well-qualified to do entry-level work at many other businesses. Every decade of your retirement will help you to better see your future, so retire now, expecting to adapt to whatever does oc...
by heyyou
Wed Jan 17, 2024 11:47 pm
Forum: Non-US Investing
Topic: China: A place where active investing makes sense? Do Americans have access to these outperforming funds like Chinese?
Replies: 32
Views: 6742

Re: China: A place where active investing makes sense? Do Americans have access to these outperforming funds like Chines

These days, I know that I don't know, so I'm better off with passive index investing for my few remaining decades. Yes, there will always be some place that is currently doing better, but that one will very seldom be the better long term investment. My best technique for more growth has been to just save more, so it's on me, and less about my discerning the optimal future place for my savings in the world's stock markets.
by heyyou
Fri Jan 12, 2024 8:35 pm
Forum: Personal Investments
Topic: Is it worth holding a small cap index fund in addition to the S&P 500?
Replies: 17
Views: 3048

Re: Is it worth holding a small cap index fund in addition to the S&P 500?

So far, no, there has not been a worthwhile advantage to including some small cap exposure.
Since this will be in a taxable account, I would buy a total market fund so you can easily see which shares have the lowest cap gains when deciding which ones to sell in the distant future.
by heyyou
Fri Jan 12, 2024 12:17 am
Forum: Investing - Theory, News & General
Topic: Thoughts on [investing in Toyota stock]?
Replies: 48
Views: 8550

Re: Thoughts on Toyota?

The easiest way for me to have more money, is to spend less.
The most unlikely way for me to get more money, is for me to buy individual stocks that I think will have better performance. I do own two Toyota vehicles with a combined 40 years of age on them.
by heyyou
Thu Jan 11, 2024 2:42 am
Forum: Personal Investments
Topic: If You Are Retiring/Retired: How are you estimating your real annual returns going forward?
Replies: 141
Views: 21249

Re: If You Are Retiring/Retired: How are you estimating your real annual returns going forward?

No estimating for me. We had been saving so diligently prior to retiring in 2005, that we were effectively practicing living on our retirement income. In pre-retirement, your current annual income minus each year's savings and taxes, is your current spending number. The RMD portfolio spending method is my progressive age-based RMD % of each recent, entire annual portfolio value, plus spending annual dividends and interest. There are RMD percentages for taxpayers of all ages, due to inherited IRAs that have immediate annual RMDs. Using that portfolio spending method, I can see next year's spending amount vary as this year's portfolio value fluctuates. I welcome those slight annual income adjustments since I view them as contributing to portf...
by heyyou
Mon Jan 08, 2024 7:27 pm
Forum: Personal Consumer Issues
Topic: Winter Gloves and Socks for camping
Replies: 37
Views: 5166

Re: Winter Gloves and Socks for camping

My ultralight down booties are sold by Montbell in Colorado, but are now manufactured in VietNam! Their fabric, suitable for ultralight down sleeping bags, is too thin for any use other than just wearing them inside of a sleeping bag. For warm hands, my first layer is thin fleece or polypro gloves that are not too tight, so there is fabric between your skin and whatever is touched when you need finger dexterity. Next is the fleece layer, then Goretex or some other almost waterproof outer layer, maybe waterproof palms with Goretex on the back of the mittens. Of course, mittens are warmer than gloves. Bring a second set of those insulation layers for night use, so you are not transferring moisture from day gear into your sleeping gear. Clean ...
by heyyou
Thu Jan 04, 2024 8:07 pm
Forum: Investing - Theory, News & General
Topic: How did you make your first $1M?
Replies: 148
Views: 33625

Re: How did you make your first $1M?

By age 25, I could already see that I only needed to work until I could afford to not need income from a job. A few years later, I was laid off for 6 weeks, a year after having bought a house with a mortgage. From there forward, I lived well below my means, trying to save all of each COLA pay raise and maxing the newly introduced 401k starting in 1981. To escape the city, I transferred to a rural area near my weekend backpacking recreation. That hobby is inexpensive after the initial equipment purchases. I met and married someone who was a more frugal spender than myself, but who had much less income, so we were different but we had complimentary traits with a similar focus. We retired when I was 55 with my no-COLA pension when our stock an...
by heyyou
Fri Dec 29, 2023 1:42 pm
Forum: Personal Investments
Topic: strategy for retirement or career transition
Replies: 16
Views: 2574

Re: strategy for retirement or career transition

To second what others have already posted: Your spending is your recent total annual income minus your annual taxes and savings, all seen in your end-of-year balances at those locations. One conservative retirement spending plan is the 4% Safe Withdrawal Rate (4% SWR) method of annually spending 4% of your current starting retirement portfolio amount followed by annual inflation boosts to that initial withdrawal number for a 30 year retirement. That method only failed in the worst case of the sustained high inflation for 30 year retirements that started about 1968. Other than that one exception, 4% SWR often has significant assets left over after 30 years. That suits your heirs, but I prefer other methods that adapt your annual withdrawal a...
by heyyou
Wed Dec 27, 2023 1:14 am
Forum: Personal Investments
Topic: Decreasing bond exposure in retirement
Replies: 25
Views: 4359

Re: Decreasing bond exposure in retirement

With a no-COLA pension and delayed to 70 Social Security, my steady income now easily covers all of my annual expenses. Thus, I see no need for more bond exposure than my current amount. I suppose I will keep it, as my volatile stock portion fluctuates.
by heyyou
Tue Dec 26, 2023 2:13 am
Forum: Personal Consumer Issues
Topic: Incorrectly classified as a contract worker; recourse?
Replies: 25
Views: 3219

Re: Incorrectly classified as a contract worker; recourse?

Through my years, the people who did the cash jobs for no taxes and no SS, were the same ones who needed unemployment and eventual SS benefits the most in their later years. For the OP, do whatever you can to encourage her get a steady job with those basic benefits.
by heyyou
Mon Dec 25, 2023 11:43 am
Forum: Investing - Theory, News & General
Topic: What is Your Biggest "Good Problem to Have"? [Financial]
Replies: 97
Views: 13682

Re: What is Your Biggest "Good Problem to Have"? [Financial]

For more than a decade prior to early retirement, we tried to save all of every pay raise. We did not realize that we were practicing for living on the amount of my future no-COLA pension income. After retiring, we continued with striving to live below our means in order to do annual Roth conversions (thank you to poster Celia).

Now in my slow-go years, the pension plus delayed SS (thank you Bogleheads) and those smaller RMDs, together, are sufficient. Having consciously lived below my means for the last forty years, now it just feels odd to not have any concerns about this year's current spending.
by heyyou
Tue Dec 19, 2023 2:36 am
Forum: Personal Investments
Topic: Roth conversion: What to convert?
Replies: 38
Views: 5371

Re: Roth conversion: What to convert?

The idea is to get growth investments out of an IRA and into the Roth to minimize future taxes.
I second that. The traditional IRA is tax deferred until your taxable RMDs start in retirement. When that additional tax on your likely reduced retirement income occurs, it is very noticeable.
by heyyou
Tue Dec 19, 2023 1:57 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562370

Re: Post your Financial Milestone Announcements Here

It sounds like you’re living well within your means. Congratulations!
Just a question - do you have any tax sheltered accounts like IRA or 401k from which you need to take RMD
This year's RMD, done in January, is still sitting in my checking account, so there is a 5 digit balance there which is noticeable, since it is so rare.
by heyyou
Sun Dec 17, 2023 9:14 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562370

Re: Post your Financial Milestone Announcements Here

This year, age 73, now in my slow-go period, my annual spending has been less than the sum of my delayed-to-70 SS and my no-COLA pension which is smaller than my SS. Thus no portfolio withdrawals, which just feels odd.
by heyyou
Sun Dec 17, 2023 8:16 pm
Forum: Investing - Theory, News & General
Topic: The Illusion of the Small Cap premium
Replies: 121
Views: 17196

Re: The Illusion of the Small Cap premium

I too am guilty of greedily striving for more performance by using factors, instead of just going with the perfectly acceptable returns of total market.
by heyyou
Sat Dec 16, 2023 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: When Did You Feel Financially Secure and Comfortable?
Replies: 134
Views: 29414

Re: When Did You Feel Financially Secure and Comfortable?

Having retired in late 2005 with a no-COLA pension, and somewhat recent delayed-to-70 SS, just now I am feeling secure since my spending is slightly less than my steady income, so my two comma portfolio is padding for my future rest home fees.
by heyyou
Sat Dec 16, 2023 10:13 pm
Forum: Personal Investments
Topic: Should I contribute more than company match in 401K?
Replies: 36
Views: 5513

Re: Should I contribute more than company match in 401K?

Having retired just before age 56, we did Roth conversions from my 401k rollover for more than a decade before starting SS at age 70. Now the much larger Roth IRA with its almost all stock funds, is tax-free and I smile every time I look at the balance. Yes to maxing your 401k every year now, while planning to do Roth conversions in your early retirement/pre-SS years.
by heyyou
Sat Dec 16, 2023 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone Bored in Retirement ??
Replies: 131
Views: 30098

Re: Anyone Bored in Retirement ??

These days in my early 70s, I am often bored. When I retired at age 55.5 from a physical job, I took community college classes and volunteered and even returned to backpacking. I thrived at doing remote hiking trail maintenance solo after I discovered using a hammock for sleeping. In my late sixties, DW passed on, and the backpacking to do trail maintenance became too strenuous, so now I am adrift on what to do next. I'm considering moving to the country of Panama, into the mile-high mountains there with their consistent daily temperatures year-round and the two seasons are rainy and not rainy. In the monsoon season, the rain doesn't start until after lunch, so you have all morning to do any outdoor activities. The new country and the Spani...
by heyyou
Sat Dec 16, 2023 8:29 pm
Forum: Investing - Theory, News & General
Topic: The Illusion of the Small Cap premium
Replies: 121
Views: 17196

Re: The Illusion of the Small Cap premium

When did the one percent SC out-performance occur, was it fairly often with just a frequent half or two percent annual advantage, or was it by near 10% for most of a year about once a decade, or some other performance/time ratio? I don't know the statistics vocabulary for that question about the consistency of the measured out-performance.
by heyyou
Fri Dec 15, 2023 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: How much more can we spend?
Replies: 23
Views: 3830

Re: How much more can we spend?

I'm using the "RMD portfolio spending method" specifically because its rising percentage of each recent annual portfolio value (plus spending interest and dividends) is adjusting each annual withdrawal to my recent remaining portfolio value. To me, that is just a continuation of living within my means, as retirement progresses. Having retired at age 55.5, variable withdrawals seemed wise for portfolio longevity.
by heyyou
Tue Dec 12, 2023 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: What is the Worst Financial Decision/Mistake You Have Made?
Replies: 657
Views: 133086

Re: What is the Worst Financial Decision/Mistake You Have Made?

In the 1980s, I put my mid-5 digit inheritance into a limited partnership buying a farm in the path of urban sprawl in Mesa Arizona, east of Phoenix. The managing partner initially did a minimum 4 digit deal that nearly doubled my first investment, so I greedily went for the 10x next offering which then failed to sell before the leverage expired. In retrospect, I wonder if the first deal was just bait, since the manager could have done that deal without any contributions from others. He soon moved to California since his business reputation was damaged in Arizona. Note how the managing partner diversified his investing risk.

I have invested solely in index funds since then.
by heyyou
Mon Dec 11, 2023 11:16 pm
Forum: Personal Consumer Issues
Topic: Found rodent droppings on engine, any cause for further concern?
Replies: 26
Views: 4057

Re: Found rodent droppings on engine, any cause for further concern?

My car mechanic recommended moth balls as a rodent deterrent in my seldom used truck, so I have an open package of them in the engine compartment.
by heyyou
Mon Dec 11, 2023 9:40 pm
Forum: Investing - Theory, News & General
Topic: How do you retirees monitor withdrawal rate (SWR) vs portfolio size?
Replies: 49
Views: 7679

Re: How do you retirees monitor withdrawal rate (SWR) vs portfolio size?

How do you retirees monitor withdrawal rate (SWR) vs portfolio size?
I use the RMD Portfolio Spending Method which is an age based (rising) percentage of each recent annual portfolio value, plus spending the interest and dividends. There are RMD % for all ages due to inherited tIRAs that require undeferred withdrawals. I welcome any variation in my annual withdrawal amount since that is adjusting my spending amount to my recent portfolio value, which boosts portfolio longevity. I can see next year's spending amount vary during each year, so there isn't a surprise on January 1st.

My delayed SS with its COLA increases is a buffer for any significant reductions in my annual portfolio withdrawal amounts.