The loan servicer gets the use of your escrow funds until they pay the taxes or insurance. This money is invested and the loan servicer makes money since most have millions of accounts. All those accounts add up to a nice return.syngameon wrote: ↑Mon Mar 18, 2024 10:33 amThanks. Multiple responses suggest that there is no fee for escrow services, which is hard to believe give that we live in a capitalist economy. Foregone interest is also a good point to consider. Our down payment is nearly 26%, so that works in our favor too.cadreamer2015 wrote: ↑Mon Mar 18, 2024 10:28 am It used to be that if your loan was above 80% of the value of the property,
Search found 1359 matches
- Mon Mar 18, 2024 11:17 am
- Forum: Personal Finance (Not Investing)
- Topic: Buying a Home: Am I Required to retain Escrow Services?
- Replies: 14
- Views: 811
Re: Buying a Home: Am I Required to retain Escrow Services?
- Thu Mar 07, 2024 3:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: Know your customer (KYC)
- Replies: 22
- Views: 2566
Re: Know your customer (KYC)
KYC is required to ensure a financial institution knows who they are dealing with. The FI is not going to disclose your personal information to “other family members”. Just answer the questions or make your life very complicated by refusing. It is up to you. The KYC was really set up to address criminal and terrorist financing but the criminals are always one step ahead.
- Thu Mar 07, 2024 2:54 pm
- Forum: Personal Investments
- Topic: Newly Retired: Start Roth Conversions For IRA or Not?
- Replies: 39
- Views: 5320
Re: Newly Retired: Start Roth Conversions For IRA or Not?
There are ways to reduce the income and tax impact by gifting RMDs. I would not go above the Medicare max at this time. You should be planning how you will be gifting the IRA since you don’t seem to need the income. Roth to the $103k is what I would do. Annuities may also provide some relief but the Medicare IRMAA has you in a bind.
- Thu Mar 07, 2024 2:47 pm
- Forum: Personal Investments
- Topic: Retirement Planning - Target Date Funds
- Replies: 18
- Views: 1848
Re: Retirement Planning - Target Date Funds
For OP your plan makes sense as you want to keep your portfolio at a certain percentage stock level to ensure some growth going forward. I am 64 and at a 50/50 portfolio which works for me. As I am already retired I look at my funds in buckets. I have shorter term lower risk funds for any cash needs over the next 5 years. Then I use target funds out 5 and 10 years for funds I probably won’t need. It is a simple way for me to handle my accounts without the constant changes to create the balance I want.
- Thu Mar 07, 2024 2:34 pm
- Forum: Personal Consumer Issues
- Topic: Getting Vanguard website to work for me
- Replies: 11
- Views: 1291
Re: Getting Vanguard website to work for me
I got so tired of Vanguard’s customer support that takes hours and the clunky website that provides no guidance on how to do things that I moved all my money over to Fidelity. Much easier website and great customer support when I have any questions. For me it was well worth the move to not be constantly frustrated when trying to do anything at Vanguard.
- Sat Mar 02, 2024 10:42 am
- Forum: Personal Investments
- Topic: Market Timing = Always Bad?
- Replies: 35
- Views: 4106
Re: Market Timing = Always Bad?
Investing is about discipline. You need to set up a plan and stick to it. If you want a 60/40 portfolio that is what you should have as long as it provides the cash flow needs that you have. So if you want the 11 years in cash and bonds then you can rebalance each quarter or annually. I have a bond fund and CDs to provide me with 5 years cash flow that I will need. I will adjust it periodically to ensure I keep around 5 years of cash flow needs. It doesn’t matter if the market is up or down, I will need to have the cash.
- Mon Feb 12, 2024 4:18 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I say no to my first federal job?
- Replies: 65
- Views: 7483
Re: Should I say no to my first federal job?
Some people like the security and benefits from a federal job. That is okay, however, I would not leave my family for the job. Keep looking until you find something you and your spouse agree on.
- Mon Feb 12, 2024 4:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: Loan advice
- Replies: 14
- Views: 1654
Re: Loan advice
Check with local credit unions, local banks, big banks (BofA, Wells, JPM, etc), online banks like Aimloan.com.
Check the interest rate and closing costs for a HELOC and regular mortgage at the above financial institutions. Take the best rate and closing combination for your situation. I would caution against getting a big HELOC above your needs as you have shown in the past allowing spending to get out of control. I would also close the vast majority of the credit cards so you won’t be tempted to load them back up (that happens a lot and the credit card companies love it).
Check the interest rate and closing costs for a HELOC and regular mortgage at the above financial institutions. Take the best rate and closing combination for your situation. I would caution against getting a big HELOC above your needs as you have shown in the past allowing spending to get out of control. I would also close the vast majority of the credit cards so you won’t be tempted to load them back up (that happens a lot and the credit card companies love it).
- Mon Feb 12, 2024 3:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: Renting vs. Owning - still on the fence
- Replies: 63
- Views: 4880
Re: Renting vs. Owning - still on the fence
Owning a home or renting is a lifestyle decision. Typically (not always) renting will be cheaper if you truly add up all the costs (those trips to HD or Lowe’s really add up). Also, depending on home appreciation is a fools game as we never know if that specific house you buy will appreciate and how much. If you have a budget and you can afford the lifestyle then buy if you want.
- Thu Feb 08, 2024 7:52 pm
- Forum: Personal Finance (Not Investing)
- Topic: TSP Contributions Roth vs PreTax
- Replies: 13
- Views: 1189
Re: TSP Contributions Roth vs PreTax
As with anything in life a balanced approach makes sense. Something like 10% to traditional and 5% to Roth. When I was in the federal government I put everything in the traditional TSP. Now that I am retired I wish I had put some in the Roth to provide more flexibility and reduce my TIRA as I move towards RMDs.
- Thu Feb 08, 2024 7:45 pm
- Forum: Personal Investments
- Topic: Simplifying Portfolio- Getting away from Managed Accounts
- Replies: 11
- Views: 998
Re: Simplifying Portfolio- Getting away from Managed Accounts
Simply make it a self directed IRA and put it in a target date index fund that matches your retirement date. It will get more conservative as you move toward that date. But make sure it is the index fund and not the managed fund which has higher fees.
- Thu Feb 08, 2024 7:39 pm
- Forum: Personal Investments
- Topic: How far to draw down tIRA when doing Roth conversions?
- Replies: 15
- Views: 1987
Re: How far to draw down tIRA when doing Roth conversions?
Personally I believe having a balance between Roth and TIRA makes sense. I would be looking to convert up to the top of your marginal tax bracket. With the caveat that tax rates can always change in the future.
- Thu Feb 08, 2024 7:34 pm
- Forum: Personal Investments
- Topic: Lost in Numbers Moving to Fidelity, Raymond, or?
- Replies: 53
- Views: 4815
Re: Lost in Numbers Moving to Fidelity, Raymond, or?
In choosing between Vanguard and Fidelity you need to understand the ease of doing things at the two institutions. At Vanguard their online system is not easy or intuitive. Customer service at Vanguard can be slow to get to the right person (you may be transferred several times). I would choose Fidelity as their online system is easier and much faster and better customer service. I would encourage you to use this forum for questions and advice. It is very easy to set up your own portfolio and manage it yourself. It will take some studying here but it’s not rocket science, you can do it! Best of luck and I am sorry for your loss.
- Sun Jan 21, 2024 12:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: [2023 Treasury Direct 1099-INT now available, how to print]
- Replies: 58
- Views: 6956
Re: Printing a Treasury Direct 1099-int (for I Bonds)
I agree with OP it is not an easy to follow document and the print is not standard. In fact my reportable interest is on the top of page 2 when printed.
- Fri Jan 12, 2024 4:12 am
- Forum: Personal Finance (Not Investing)
- Topic: Help thinking through unusual (?) mortgage option
- Replies: 15
- Views: 2192
Re: Help thinking through unusual (?) mortgage option
A lot of good questions in the comments above. If there are no big red flags from the questions I would take the mortgage rate from the employer. Yes, it will impact your taxable savings but the interest you save could be used to build back the taxable. If interest rates fall significantly you can refi and have a lower balance.
- Mon Jan 01, 2024 8:06 am
- Forum: Personal Investments
- Topic: Portfolio advice for already retired
- Replies: 8
- Views: 1359
Re: Portfolio advice for already retired
Figure out your risk tolerance. There are many online questionnaires to use. That will set your stock/ bond split. It really doesn’t matter given your assets and expenses being funded by the pension / SS income. You can be as conservative as you want to be. Personally I prefer Fidelity over Vanguard given issues I had with Vanguard’s website and trouble getting to the right person on the phone when I had issues, but either would work. I would suggest you look at target date / lifestyle type funds where you set it and forget. You could go with an income type fund. I would not recommend buying treasures or other bond’s unless you enjoy managing the money yourself and being actively involved. Bottom line it would be hard to lose all your inves...
- Sun Dec 31, 2023 7:10 pm
- Forum: Personal Consumer Issues
- Topic: When to buy eventual retirement home?
- Replies: 20
- Views: 3515
Re: When to buy eventual retirement home?
10 years out it is more of an investment then a future retirement home. Treat it like an investment and is this the best place to put your capital for the best return?
- Sun Dec 31, 2023 7:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: How much of an impact does closing oldest card have on credit score?
- Replies: 20
- Views: 2797
Re: How much of an impact does closing oldest card have on credit score?
We moved from a credit union to Fidelity about 18 months ago. We had a credit card there for 18 years and decided to close it. It will depend on how long your other credit has been open but our hit was 10 points on the credit score. 18 months later we have regained that 10 points. Not a big deal for us.
- Thu Dec 28, 2023 6:40 pm
- Forum: Personal Finance (Not Investing)
- Topic: Retirement: what was more expensive than anticipated?
- Replies: 80
- Views: 19538
Re: Retirement: what was more expensive than anticipated?
We are budgeting $9,000 per year for travel. That takes care of trips within the US. But we have other trips in mind that will be additional dollars such as to Hawaii, Normandy Beaches in France, River cruise in Europe, etc. Each of those will probably be at least $5,000 to $10,000. Depending on where you are going, how long you’re staying, and class of service travel can get real expensive very fast. There are things we want to do while we are still able in our 60’s. When we get into our mid 70’s we may not want to travel or be able to travel so we want to get our trips in now.
- Thu Dec 28, 2023 8:32 am
- Forum: Personal Investments
- Topic: Retirement income
- Replies: 3
- Views: 1176
Re: Retirement income
The biggest question is what will your expenses be in retirement? That will determine what risk you need to take to ensure your portfolio lasts for your lifetime.
- Thu Dec 28, 2023 8:16 am
- Forum: Personal Finance (Not Investing)
- Topic: Basic Portfolio Depletion Question
- Replies: 15
- Views: 1977
Re: Basic Portfolio Depletion Question
Lots of factors to think about. From your overall health to SS claiming plan. Right now I withdraw more than 4% with the knowledge when I claim SS at 70 my required withdrawals will drop dramatically. You also need to think about RMDs and their impact on your portfolio. A SPIA can be a useful tool to reduce a portfolio and the impact of RMDs. But I would not put everything into a SPIA because of inflation and the potential to reduce my standard of living due to inflation. How does a SPIA help, when it provides income that is taxed just like RMDs? The issue with RMDs is not the taxation but the potential to put you into a higher tax bracket. The SPIA can be used to reduce the size of your IRA portfolio and therefore reduce the size of the R...
- Wed Dec 27, 2023 6:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Basic Portfolio Depletion Question
- Replies: 15
- Views: 1977
Re: Basic Portfolio Depletion Question
Lots of factors to think about. From your overall health to SS claiming plan. Right now I withdraw more than 4% with the knowledge when I claim SS at 70 my required withdrawals will drop dramatically. You also need to think about RMDs and their impact on your portfolio. A SPIA can be a useful tool to reduce a portfolio and the impact of RMDs. But I would not put everything into a SPIA because of inflation and the potential to reduce my standard of living due to inflation.
- Wed Dec 27, 2023 6:21 pm
- Forum: Personal Finance (Not Investing)
- Topic: Retirement: what was more expensive than anticipated?
- Replies: 80
- Views: 19538
Re: Retirement: what was more expensive than anticipated?
Travel was definitely more than I anticipated. There are also “lumpy” expenses you need to think about such as a new car, roof, AC/furnace, other appliances. If you have a decent idea of your current expenses it shouldn’t be a large factor.
- Tue Dec 26, 2023 4:37 am
- Forum: Personal Finance (Not Investing)
- Topic: Renting Vs. Buying a Home in the Latter Decades of Life?
- Replies: 22
- Views: 4749
Re: Renting Vs. Buying a Home in the Latter Decades of Life?
Wherever you move to rent there for a few months at least before buying. Personally, I would have rented in retirement (retired 8 years) but the boss wanted to buy. I think it is a good idea to snow bird somewhere warmer. I have met a lot of people from the NE that get bored in the winter when retired and tired of dealing with the weather. Florida or Arizona are good choices to go to in the colder months. But renting during snow bird season in top locations can be expensive and difficult to find in popular areas.
- Tue Dec 19, 2023 1:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: How to Estimate Income Needed in Retirement
- Replies: 34
- Views: 2738
Re: How to Estimate Income Needed in Retirement
I retired at 56 and as others pointed out it really depends on your expenses and what you want to do with retirement. We had been budgeting for 25 years so there was no surprises when I retired in 2015. If you want to travel that can be very expensive depending on what you’re looking for. I would say travel was definitely the one thing we under budgeted in retirement. Fidelity also asks about discretionary and non discretionary expenses. That is comforting for us because if everything went bad for a long time we could still cover our non discretionary expenses. At 33, I would say live well below your means on housing and cars, trips, clothes, etc and save as much as possible. Then in 20 to 30 years you will know when you can retire and the ...
- Mon Dec 18, 2023 5:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: annutizing mortgage
- Replies: 48
- Views: 6187
Re: annutizing mortgage
So, this is a very interesting idea. I tried 4 different websites for quotes. My investments are in a traditional IRA. But there is a Individual Retirement Annuity as described below that states you reduce your traditional IRA and the amount subject to RMDs, and the monthly withdrawals are considered your RMDs for the retirement annuity. Not sure if this is legit or not but if it is it makes it interesting for traditional IRAs. My problem is the quotes I received do not cover the mortgage payment and taxes. In fact they are several hundred dollars per month short when looking at the life SPIA. The only one that got close to covering was the Certain 15 year which would work since I have 12 years left on mortgage and it would give me 3 more y...
- Mon Dec 18, 2023 7:00 am
- Forum: Personal Finance (Not Investing)
- Topic: For those who want retirement: decision framework?
- Replies: 35
- Views: 4701
Re: For those who want retirement: decision framework?
I'm going to ask you a question that those who follow my posts already know what it is. What, for you is X? Let me answer that for you then give you a homework assignment. X is "retirement spending". This is NOT "while working spending". Now the homework assignment. Start a list of spending you'll do when in retirement. Some things aren't much different like property tax and electricity. Some are drastically different like health care expenses. DW and I just retired 6 months ago and our spending in retirement is 50% more than it was while working. So some of your assignment includes finding out what you'll be paying for health care. If you get through that (took me 5 years), build yourself a spread sheet with annual amo...
- Sun Nov 19, 2023 6:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: Those of you that retired early (pre-SS/RMD) - what were your expenses like first 5-10 yrs?
- Replies: 26
- Views: 4029
Re: Those of you that retired early (pre-SS/RMD) - what were your expenses like first 5-10 yrs?
I retired in 2015 at 56, expenses were 57% post retirement. We budget the same way we always budgeted. We save monthly for any large expenses (car, roof, home improvement, vacations, etc). Overall about 60% of our expenses are non discretionary and 40% discretionary. Inflation for us ran about 1 to 2% annually until this year. Our budget for next year will be a 3 to 4% increase. I know I could just pull from retirement accounts for large expenses, but I just like to build up for big expenses. Old habit I guess.
- Sun Nov 19, 2023 1:47 pm
- Forum: Personal Investments
- Topic: Can I retire in 5 years if I have 7 figure net worth, but kids to put through college?
- Replies: 22
- Views: 4132
Re: Can I retire in 5 years if I have 7 figure net worth, but kids to put through college?
So let’s say $5M NW, half in home equity leaves $2.5M. Let’s say $500k college, that leaves $2M investments for retirement. $2M x .03 percent = $60k per year. Can you live on that with paying for healthcare out of the $60k? You could say you could take 4% ($80k) until SS and then reduce to 3% and be fine. This is the type of analysis you need to do and also use some of the retirement calculators. I like the Fidelity one.
- Fri Nov 17, 2023 7:27 pm
- Forum: Personal Investments
- Topic: Treasury Bill or CD for 5 years?
- Replies: 38
- Views: 9286
Re: Treasury Bill or CD for 5 years?
What I see on Fidelity is when CDs get out to 5 years the top rates are all callable. The likelihood those over 5% will not be called is low in my opinion. I would do a Treasury bond and maybe a ladder like what was suggested above. On safe money locking in 4% to 5% over 5 years is not a bad call imho.
- Fri Nov 17, 2023 7:18 pm
- Forum: Personal Investments
- Topic: Quick question about rebalancing…
- Replies: 39
- Views: 2282
Re: Quick question about rebalancing…
I would encourage you not to constantly rebalance. You are buying stock at higher levels and selling bonds that may be underperforming. You can change your allocation to 100% stock, but that may still not be enough. I was constantly chasing my “ideal” allocation. Finally I decided to just go all target date retirement accounts and allow it to rebalance for me and get more conservative over time. This saved me a lot of work and frustration and cost very little in terms of fees.
- Fri Nov 17, 2023 7:12 pm
- Forum: Personal Investments
- Topic: Personal Portfolio Advice
- Replies: 14
- Views: 1629
Re: Personal Portfolio Advice
I would boost my emergency fund to at least 6 months of expenses. I would do broad U.S. stock funds (Russell 2000) and 10 to 20% international. I like target funds because they get more conservative as you get closer to retirement for just a slightly higher expense ratio.
- Fri Nov 17, 2023 7:03 pm
- Forum: Personal Investments
- Topic: Portfolio Review - Seeking validation on the right path
- Replies: 19
- Views: 1639
Re: Portfolio Review - Seeking validation on the right path
Your stock bond split really depends on when you plan to retire and when you need the funds. I like the target funds to set it and forget it but 2070 means you never plan to use the funds? With your level of assets you could take less risk and do very well unless you want to leave a big pot of gold to beneficiaries. Depending on your planned retirement date and pensions, SS, and other sources of income it is not to early to start thinking about what retirement will look like if you plan to retire in 5 to 10 years. You talked about possible layoff, if that is a likely event and it would lead to forced retirement then I would take less risk and prepare for the possibility. Last thing, personally I wouldn’t have 40% in international, but maybe...
- Sun Nov 12, 2023 6:33 pm
- Forum: Personal Investments
- Topic: Need help with 401k funds
- Replies: 21
- Views: 1673
Re: Need help with 401k funds
I would never base my choice of funds on a year to date return. Agree it looks like way too many funds. Simplicity and using index funds will serve you the best in the long run.
- Sun Nov 12, 2023 6:29 pm
- Forum: Personal Investments
- Topic: Emergency Fund Becoming Too Much?
- Replies: 21
- Views: 3301
Re: Emergency Fund Becoming Too Much?
I won’t comment about getting to 65 in a tech career. But I don’t think having a years worth of expenses is unreasonable given your upcoming expenses. When you take those expenses out what is the months saved in the emergency fund? Personally I would not include my emergency funds in my retirement asset allocation. To me they are two completely separate purposes.
- Sun Nov 12, 2023 4:33 pm
- Forum: Personal Investments
- Topic: nearly retired - what to do with assets?
- Replies: 28
- Views: 7285
Re: nearly retired - what to do with assets?
A lot of good advice here. I would just say this, think about how much you will need each month or year after you retire and where that income will come from. If pension and SS cover what you need then slowly learn about investments and take your time. If you need to take money from investments during retirement then think about a ladder type approach. Have very liquid funds (CDs, Money Market, short term treasuries or bonds) that will cover withdrawals for the first 5 years. Then you can take more risk with funds you will need in year 6 to 10. And more risk in funds not needed for 11 years or more as you move up the ladder. An easy way to do this is with target date retirement funds that you can set and forget. So you may have a 2030 targe...
- Sun Nov 12, 2023 4:11 pm
- Forum: Personal Finance (Not Investing)
- Topic: Need advice about a Reverse Mortgage A.S.A.P.
- Replies: 9
- Views: 2087
Re: Need advice about a Reverse Mortgage A.S.A.P.
Agree with others that your post is very confusing. Is it a reverse mortgage where your mother receives a monthly payment and the balance increases? Or is it a mortgage that has been refinanced over the years with cash being taken periodically? If your father took out the reverse mortgage is the principal balance now due (it appears he passed away)? If it was based on your father’s lifetime and he is deceased they will request repayment of the loan or foreclose. It depends on the value of the property to determine what will happen. If your mother signed the paperwork there is probably little you can do. Request the terms of the agreement. If your mother is included in the reverse mortgage and she is receiving a monthly payment then your cho...
- Sun Nov 05, 2023 2:39 pm
- Forum: Personal Investments
- Topic: We are now able to move spouses retirement funds from AUM advisor and would like advice on setting this portion up.
- Replies: 6
- Views: 971
Re: We are now able to move spouses retirement funds from AUM advisor and would like advice on setting this portion up.
I moved from Vanguard to Fidelity for a few reasons. First, the clunky customer interface on the website. Second, the difficulty in figuring out how to do things on the website. Third, the time it took to get a customer service rep on the phone and then the inevitable 2 to 3 transfers to get to the right person. I have been very happy with Fidelity thus far and no issues. Plus customer service is fast if you need them.
In looking at your investments simplification is a clear goal for the investments. Personally I like target date funds that are simple and a set it and forget it philosophy. You pay a few extra basis points but for me it is worth it for the simplicity. I use the index target funds at Fidelity.
In looking at your investments simplification is a clear goal for the investments. Personally I like target date funds that are simple and a set it and forget it philosophy. You pay a few extra basis points but for me it is worth it for the simplicity. I use the index target funds at Fidelity.
- Sun Nov 05, 2023 2:31 pm
- Forum: Personal Investments
- Topic: Home Down Payment (3+ years away, uncertainty)
- Replies: 8
- Views: 1661
Re: Home Down Payment (3+ years away, uncertainty)
With MM, CDs, and Treasures providing a good return right now there is no reason to take additional risk with stock or bond funds. Put the money for the house in one of the above and see where you are in 3 years.
- Sun Oct 29, 2023 5:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: FEHB With Medicare--It's In The Details
- Replies: 133
- Views: 17185
Re: FEHB With Medicare--It's In The Details
We have NALC high and do not plan to get Part B. The plan is working fine and we can easily fund the catastrophic limits when needed. Why would I pay10 to 20 years of Part B premiums just so I pay nothing at end of life? Well said. Are you on Medicare Part A yet? If you don't mind sharing, what amounts of your share of coinsurance are you typically seeing for physicians and labs and tests that you pay out of pocket which would normally be covered under Part B/FEHB combo? My spouse for years has had probably 30 appts, labs, serious tests per year but with A/B and FEHB has paid zero, but I have noticed the actual amount paid by the FEHB as secondary rarely reaches what we paid in Part B premiums (non-IRMAA). The NALC High plan is rare in tha...
- Sun Oct 29, 2023 4:21 pm
- Forum: Personal Finance (Not Investing)
- Topic: FEHB With Medicare--It's In The Details
- Replies: 133
- Views: 17185
Re: FEHB With Medicare--It's In The Details
We have NALC high and do not plan to get Part B. The plan is working fine and we can easily fund the catastrophic limits when needed. Why would I pay10 to 20 years of Part B premiums just so I pay nothing at end of life? Are you going to opt into the new NALC High Part D Rx option for 2024? Apparently allowed even if only on Part A. I believe the brochure states it will be at least the same coverage or better than the regular plan Rx coverage. Also gives a $1200 per year reimbursement for a self+one if both on Medicare. How do you read the new info? I would appreciate any comments since you are familiar with NALC. Makes NALC High all the more attractive in my opinion. Sorry, I haven’t been online in a while. I looked initially at the Medic...
- Sun Oct 29, 2023 4:15 pm
- Forum: Personal Finance (Not Investing)
- Topic: FERS Retirement...Have done everything right (I think) and still nervous..
- Replies: 56
- Views: 9646
Re: FERS Retirement...Have done everything right (I think) and still nervous..
A few things: 1. A FERS retirement does not get a Cola until 62. You will lose the supplement at 62. So if you plan to wait until FRA or 70 you will have to make up for supplement loss. 2. Everyone is nervous when they retire. Think of it this way, it is a new adventure where you can try different things. What’s the worse that can happen, you decide to be a contractor. 3. Think about taxes. What tax year will you receive your lump sums. Make sure with HR that your lump sums will be a 2024 tax event. If not bump you retirement into 2024. I made this mistake and cost me extra in taxes. 4. Do you know what you want to do with your time in retirement? I highly recommend taking about 6 months and developing a schedule for your week and thinking ...
- Fri Oct 20, 2023 1:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: FEHB With Medicare--It's In The Details
- Replies: 133
- Views: 17185
Re: FEHB With Medicare--It's In The Details
We have NALC high and do not plan to get Part B. The plan is working fine and we can easily fund the catastrophic limits when needed. Why would I pay10 to 20 years of Part B premiums just so I pay nothing at end of life?
- Sat Sep 30, 2023 3:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: Is owning a condo worth the risk?
- Replies: 55
- Views: 7712
Re: Is owning a condo worth the risk?
So when is paying taxes on a gain a bad thing? It could be a tax loss, would that make you happy? Sell it, pay the taxes and move on. Would you really not sell, given the risk, just to avoid paying taxes?
- Fri Sep 22, 2023 10:14 am
- Forum: Personal Finance (Not Investing)
- Topic: Should I sell? - inherited house
- Replies: 29
- Views: 3602
Re: Should I sell? - inherited house
From a financial perspective selling it makes the most sense. Your return is very small and you can do much better selling and investing the proceeds. Now only you can determine if the sentimental value is worth more to you.
- Thu Sep 07, 2023 4:01 pm
- Forum: Personal Investments
- Topic: Portfolio guidance request
- Replies: 31
- Views: 3608
Re: Portfolio guidance request
You are four years out from retirement with a 4.6m portfolio. First I would try to simplify your holdings. Start with the tax deferred since there will be no tax consequences. Get to a 3 or 4 fund portfolio. In retirement you need to think of safety and liquidity for funds you will need in the first 5 years of retirement. I think of it as a “ladder” approach. I estimate expenses and have funds in low risk product for those first 5 years. Then for years 6 to 10 cash flow needs I take more risk. For anything over 10 years I take more risk (more stock). One easy way to handle is to use target date retirement funds that become more conservative as you move toward the date. They charge slightly higher fees (if you use index target funds) but it ...
- Sat Sep 02, 2023 6:48 pm
- Forum: Personal Finance (Not Investing)
- Topic: First Time Landlord - Miscellaneous Questions
- Replies: 26
- Views: 3025
- Sat Sep 02, 2023 6:36 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone else feel guilty retiring early???
- Replies: 86
- Views: 9523
Re: Anyone else feel guilty retiring early???
First, everyone is different and people on here can give advice but it is really up to you to decide your direction. For me I retired from a high stress job at 56 and smiled for the first 3 months of retirement when I woke up. It is important to have a purpose and schedule. It took me about 6 months to figure out but between volunteering, working out, golf (obviously), and family it has worked out great for me (almost 8 years). I found that thinking about retirement as a new adventure worked great for me. But again, everyone is different. If you still want to work the great thing is you can work part time or full time. Find your passion and put your energy there.
- Fri Sep 01, 2023 9:24 am
- Forum: Personal Finance (Not Investing)
- Topic: How much house can we afford?
- Replies: 21
- Views: 2754
Re: How much house can we afford?
Of course you can afford the home. Is it a good decision financially, only you can determine. It all depends on the stability of your income. If very stable and expected increases in the future, then yes you should be fine. Would a million dollar home work for your growing family? Again, you need to make the call. Just go into buying with the realization that homes are money pits and trips to furniture stores, HD/Lowe’s are ongoing. It’s a lifestyle and if you want the lifestyle then go for it. On the taxable account to reduce the mortgage. Look at the impact of capital gains and decide if the cost is worth the mortgage reduction. If you have losses you could always take those and reduce the mortgage. I am pretty anti debt personally so I u...
- Wed Aug 30, 2023 8:50 am
- Forum: Personal Investments
- Topic: Portfolio Advice - Getting Conflicting Opinions. Thank you in advance.
- Replies: 21
- Views: 1736
Re: Portfolio Advice - Getting Conflicting Opinions. Thank you in advance.
Why make your plan so complicated? Are you going to rebalance when percentages change? How often? What is your age? Bogleheads, in my opinion, are about two things: low cost and simplicity. The 3 fund portfolio discussed throughout this board is a simple, inexpensive way to get the exposure you need depending on your age and risk tolerance. You can set up the same portfolio at Schwab, Fidelity, or Vanguard. Also, if you want a set it and forget fund then index target date funds will work well and get more conservative as you age for slightly higher cost than the 3 fund portfolio. Take time and educate yourself by reading the information on here about a 3 fund portfolio.