Search found 545 matches

by bradpevans
Fri Aug 23, 2019 2:52 pm
Forum: Personal Consumer Issues
Topic: Skunks keep coming in our yard!
Replies: 44
Views: 2928

Re: Skunks keep coming in our yard!

Last night at 3:30 AM my dog got sprayed not once but TWICE :oops: . To top it off all the windows in the house were open too :x Dogs and humans are the only creatures that will get sprayed more than once https://www.humanesociety.org/resources/de-skunking-your-dog ^^^ this will help remove the sme...
by bradpevans
Tue Aug 20, 2019 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Are we financially okay?
Replies: 64
Views: 8086

Re: Are we financially okay?

I've made edits to the original post to provide more details: Investments: Cash/MM/CD - $2M @ ~2% interest rate or ~$40K interest income/yr Stocks - $2M (~$1M in 401K/ROTH/IRA and then $125K in 529) Bond - $100K Mortgage Debt of $800K (equity of ~$600K) @ 4% Despite being negative cash flow until D...
by bradpevans
Sat Aug 17, 2019 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Can SS benefits continue to increase if still working after claiming?
Replies: 10
Views: 1204

Re: Can SS benefits continue to increase if still working after claiming?

rai wrote:
Sat Aug 17, 2019 8:36 am
Is it wise to take SS while still working and pay taxes? Might be better tapping your taxable savings if needed. I never understand why someone would claim at 62 if still making significant income from work.
I sure wouldn’t...
by bradpevans
Fri Aug 16, 2019 10:14 pm
Forum: Personal Investments
Topic: Single-stock investing in taxable or Roth?
Replies: 39
Views: 1640

Re: Single-stock investing in taxable or Roth?

Roth if it goes up
Taxable if it goes down

I’d go Roth ( but I have access to mega backdoor Roth, so my Roth space isn’t filled yet)
by bradpevans
Wed Aug 14, 2019 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security -- Take it at 62, 67 or 70
Replies: 317
Views: 24313

Re: Social Security -- Take it at 62, 67 or 70

I’m curious if this would be informative:
Price out SPIA at age 62 such that payout = your SS benefit at 62
Do this for 63 to 70, adjusting the premium each year such that the payout = SS amount

What type of returns would you need to keep up with the SPIA payment?
by bradpevans
Wed Aug 14, 2019 2:26 pm
Forum: Personal Investments
Topic: Is a Backdoor Roth worth it in our situation?
Replies: 26
Views: 1323

Re: Is a Backdoor Roth worth it in our situation?

My wife and I are both 35 years old and haven't contributed to a Roth IRA in several years since our salaries are too high to do a standard Roth IRA contribution. We have the option of doing a "Backdoor Roth IRA Contribution" except we both have rollover IRA's from previous employer 401k's. Those r...
by bradpevans
Wed Aug 14, 2019 11:10 am
Forum: Personal Investments
Topic: Is a Backdoor Roth worth it in our situation?
Replies: 26
Views: 1323

Re: Is a Backdoor Roth worth it in our situation?

My wife and I are both 35 years old and haven't contributed to a Roth IRA in several years since our salaries are too high to do a standard Roth IRA contribution. We have the option of doing a "Backdoor Roth IRA Contribution" except we both have rollover IRA's from previous employer 401k's. Those r...
by bradpevans
Tue Aug 13, 2019 4:29 pm
Forum: Personal Investments
Topic: Paying current taxes vs continued high expenses
Replies: 31
Views: 1643

Re: Paying current taxes vs continued high expenses

Considering you have been holding for over 30 years the basis is probably around $5k. That makes a bulk sale rather unappealing as far as capital gains. Were I so unfortunate as to have your dilemma I would consider: 1) Hold the five funds but be prepared to sell one or more if there is a big downt...
by bradpevans
Mon Aug 12, 2019 6:41 am
Forum: Personal Investments
Topic: Catch up Contributions
Replies: 10
Views: 762

Re: Catch up Contributions

There is no real difference between regular contributions and catch-up contributions. Even if they are assigned a different code on your paycheck stub, it's all just money going into your 401k. It's not taxed differently. It isn't allocated within your 401k differently. It's just money. Just think ...
by bradpevans
Sun Aug 11, 2019 6:49 am
Forum: Personal Investments
Topic: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?
Replies: 67
Views: 6201

Re: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?

Hey guys. I'm such a Boglehead (10 years now) that I don't even check the forum often. I set a plan, sit and relax. But I have to admit to myself that I've never invested through a recession. The economy seems amazing but as you're all seeing, there are indicators that say we're overdue for a downt...
by bradpevans
Sat Aug 10, 2019 2:35 pm
Forum: Investing - Theory, News & General
Topic: The fallacy of Dollar Cost Averaging
Replies: 101
Views: 8412

Re: The fallacy of Dollar Cost Averaging

In a high volatility window, the specific lump sum date / the specific DCA dates have a larger role than in less volatile periods

Time in the market is your friend
by bradpevans
Fri Aug 09, 2019 9:43 am
Forum: Personal Investments
Topic: individual old stock advice
Replies: 5
Views: 440

Re: individual old stock advice

Hi I was hoping to ask a question to the forum. I am very lucky in that a parent purchased a few individual stocks for me (under my name) around 20 years ago and have had a nice appreciation over the years. I am a strong believer of the buy and holding of index funds as the major source of investme...
by bradpevans
Fri Aug 09, 2019 9:32 am
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 17925

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

if people are "allowed" to pay off a low rate mortgage so they "sleep better at night" it seems they should be able to "live off dividends" so they DON'T have to make decisions about what to sell when I don't think anybody disagrees with the assertion that living off dividends is *simple*. But if y...
by bradpevans
Thu Aug 08, 2019 7:20 am
Forum: Personal Investments
Topic: Input appreciated: Taking advantage of tax brackets regarding retirement savings when not working.
Replies: 8
Views: 452

Re: Input appreciated: Taking advantage of tax brackets regarding retirement savings when not working.

In general, Roth conversion(s) during low tax years is a good strategy. You delayed the tax on the front end, and now pay low rates on the conversion Additionally, if you have *gains* in taxable you might tax Gain harvest - sell and re-buy - which triggers a gain perhaps at 0% LTCG and moves the bas...
by bradpevans
Thu Aug 08, 2019 7:09 am
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 17925

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

if people are "allowed" to pay off a low rate mortgage so they "sleep better at night" it seems they should be able to "live off dividends" so they DON'T have to make decisions about what to sell when
by bradpevans
Wed Aug 07, 2019 3:09 pm
Forum: Personal Investments
Topic: Should I give myself bridge loan through my VG accounts
Replies: 18
Views: 927

Re: Should I give myself bridge loan through my VG accounts

Seems like a good plan. Just note that the gain offsetting losses is really mental accounting. You could harvest the just losses, taking the deduction against income while using the proceeds as a downpayment on a mortgage. Then either keep the mortgage or pay it off if/when you have cash or another...
by bradpevans
Wed Aug 07, 2019 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Spend safely in Retirement (link to report)
Replies: 4
Views: 976

Spend safely in Retirement (link to report)

The extremely condensed version: https://www.cnbc.com/2019/08/06/stanford-analyzed-292-retirement-strategies-to-determine-the-best-one.html The full report: https://www.soa.org/globalassets/assets/files/resources/research-report/2019/viability-spend-safely.pdf The authors: Dr. Wade Pfau Joe Tomlinso...
by bradpevans
Tue Aug 06, 2019 9:13 pm
Forum: Personal Investments
Topic: I still don't understand the value of a Backdoor Roth for high income earners
Replies: 63
Views: 6064

Re: I still don't understand the value of a Backdoor Roth for high income earners

For high earners it is often Roth and Traditional (as opposed to Roth instead of traditional)
by bradpevans
Fri Aug 02, 2019 9:27 am
Forum: Personal Investments
Topic: Best retirement saving strategy using tax-free income
Replies: 7
Views: 999

Re: Best retirement saving strategy using tax-free income

If you have any profits in taxable account(s), you may be able to tax GAIN harvest, re-upping your basis which will save taxes down the road
by bradpevans
Thu Jul 25, 2019 1:58 pm
Forum: Personal Investments
Topic: Possible Retirement
Replies: 11
Views: 1444

Re: Possible Retirement

It looks like you're in good shape, even without Social Security. So why claim it early? You can afford to wait and maximize it. I would consider the wait on SS strategy: lessen RMDs after 70.5 with your diversity of accounts (tax/pretax/roth) you may well be able to have some "low income" years th...
by bradpevans
Tue Jul 23, 2019 2:46 pm
Forum: Personal Investments
Topic: More aggressive portfolio with a pension?
Replies: 52
Views: 6940

Re: More aggressive portfolio with a pension?

Good conversation. I know of retirees receiving two social security checks and two pensions, with a 100% equities portfolio because they do not depend on their portfolio to pay all or part of their monthly expenses. Some of them are members of this forum (names withheld to protect the innocent). It...
by bradpevans
Tue Jul 23, 2019 6:45 am
Forum: Personal Finance (Not Investing)
Topic: Help! Should we refinance our 4.375% mortgage loan?
Replies: 16
Views: 1625

Re: Help! Should we refinance our 4.375% mortgage loan?

Since you are already paying extra this may not apply but 1) the "new" payment will always be smaller: you are financing the current balance, not the original 2) the "clock" starts over (i.e. 180 payments to go on a 15 year) I've refinanced twice (6.25 --> 5.125 --> 3.75), each time re-setting the 1...
by bradpevans
Mon Jul 22, 2019 3:33 pm
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting Worth it?
Replies: 176
Views: 10229

Re: Tax Loss Harvesting Worth it?

If losses go against INCOME, then its more worthwhile, effectively "hedging" between Marginal Tax Rate and LTCG rate. (But selling at the loss then re-establishes the basis at that lower value, so the gains start from there.) If you can live at low enough income levels at some, you can get LTCG rate...
by bradpevans
Mon Jul 22, 2019 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: When family members fight over the check when out to eat
Replies: 103
Views: 8185

Re: When family members fight over the check when out to eat

We sometimes have this drama at family dinners. What REALLY bothers me, however, is when the plan is to split the dinner two ways, but when the bill comes I pull out a credit card and the other guy hands me cash...C'mon, man! I get stuck with the whole amount on my credit card and cash in my wallet...
by bradpevans
Fri Jul 19, 2019 3:22 pm
Forum: Personal Investments
Topic: Should I avail myself of offered post-tax retirement?
Replies: 2
Views: 366

Re: Should I avail myself of offered post-tax retirement?

So they did a re-vamp of our 403b at work and now some amount of post tax retirement is available. I'm very comfortable with where we are right now and everything is on autopilot but I wanted some opinions as to if I should take advantage of this. I'm not sure what it is exactly, but now there is a...
by bradpevans
Fri Jul 19, 2019 8:21 am
Forum: Investing - Theory, News & General
Topic: What is the optimal market movement if investing 20% of portfolio today?
Replies: 9
Views: 813

Re: What is the optimal market movement if investing 20% of portfolio today?

I kinda don't really understand the question. Surely it should be obvious that "optimal" is that VTSAX suffers a -99.999% flash crash down to $0.01 a share. At which point you buy in and then it rebounds the next day. I'm struggling to see how that is useful or even especially informative. ^^^ this...
by bradpevans
Fri Jul 19, 2019 6:45 am
Forum: Personal Finance (Not Investing)
Topic: Substantial position in an individual stock
Replies: 31
Views: 2341

Re: Substantial position in an individual stock

...From the looks of it, the simplest strategy seems to be to continue to hold and sell at opportune times (AAPL goes down or market goes down)... Might not be the best strategy, if you sell on weakness in price you will net less than if you sell on strength. As the stock declines in price the taxa...
by bradpevans
Fri Jul 19, 2019 6:36 am
Forum: Investing - Theory, News & General
Topic: Help me understand R vs R-squared
Replies: 15
Views: 1563

Re: Help me understand R vs R-squared

I cannot for the life of me understand the value of R-squared vs R. I've read all the explanations but still don't get it. R tells us the strength of the correlation between two variables. If one variable goes up, what does the other one do? Does it usually go up? Does it usually go down? Does its ...
by bradpevans
Fri Jul 19, 2019 6:25 am
Forum: Investing - Theory, News & General
Topic: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?
Replies: 8
Views: 767

Re: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?

I transferred some lots from another brokerage to Merrill Edge. They converted my fractional lots to all whole numbers, creating new tiny lots with new prices. Before (fake example, fake math): 2.145 @ $70 1.178 @ $60 1.677 @ $30 (5 shares total) After: 2 @ $70 1 @ $60 1 @ $58.64 1 @ $30 Like that,...
by bradpevans
Thu Jul 18, 2019 9:21 am
Forum: Personal Investments
Topic: asset allocation anxiety
Replies: 29
Views: 2327

Re: asset allocation anxiety

Dear Wise Bogleheads, who have taught me so much, I have always had a high risk tolerance and consequently a stock heavy allocation (80/20 or more over the decades). I am now 68 and planning to retire in the next 12-24 months. Rationally I understand that this is a time to be cautious, though I pro...
by bradpevans
Thu Jul 18, 2019 6:00 am
Forum: Personal Investments
Topic: How exactly does maxing a 401k work when you're approaching the limit line?
Replies: 27
Views: 2185

Re: How exactly does maxing a 401k work when you're approaching the limit line?

The only really correct answer is going to come from reading the 401k rules from your employer. They can be very different and my experience may not apply to you. ^^^ this Mine (via Fidelity), has a "spillover election" radio button: a) stop at exactly the limit for the year b) "spillover" into an ...
by bradpevans
Wed Jul 17, 2019 10:46 am
Forum: Personal Investments
Topic: $13 Million Goal for Early Retirement (am I crazy?)
Replies: 189
Views: 40566

Re: $13 Million Goal for Early Retirement (am I crazy?)

once you start de-cumulating then sequence is a huge piece of the story Historically, sequence of returns has been a problem for high withdrawal rates, but not for the normal SWRs that people talk about here... Maybe the future will be different, but the big concern with sequence of returns has alw...
by bradpevans
Wed Jul 17, 2019 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Help valuing my pension
Replies: 8
Views: 614

Re: Help valuing my pension

How much annually do they put in that YOU CAN WALK AWAY with if you left today? That's what it's worth, in my opinion. I tend to put zero value on pension, RSU, options that vest in the future. What if you leave? They become worth zero. What if your company is purchased? I was with a company that w...
by bradpevans
Wed Jul 17, 2019 10:20 am
Forum: Personal Finance (Not Investing)
Topic: 1 million in liquid assets or paid off mortgage by 40?
Replies: 61
Views: 6120

Re: 1 million in liquid assets or paid off mortgage by 40?

I just wanted to get a feel from the Boglehead community on what you all would prefer by age 40. A. 1 million dollars in liquid assets B. home mortgage paid off FWIW I am 39 years old with 788k in liquid assets and 149k remaining on my home mortgage. I am always wrestling with the eternal question ...
by bradpevans
Tue Jul 16, 2019 8:36 am
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2581

Re: Not Another Pay off the House or Invest...

my view is that the comparison should be:

invest for the long term (not just the life of the mortgage)
vs.
pre-pay

If you plan to pre-pay till it is paid off, and then invest the mortgage amount in the market, don't you want/hope/expect to beat 3.75 in the long run?
by bradpevans
Mon Jul 15, 2019 9:33 am
Forum: Personal Investments
Topic: Old pension plan- take the lump sum or wait for the monthly payout?
Replies: 23
Views: 2004

Re: Old pension plan- take the lump sum or wait for the monthly payout?

If you go lump,
i) you have all the money (i.e. you remove the risk of "i lost monthly payments because of early death")
ii) you have all the burden (you now have market risk and cognitive risk to make the money last / perform)

Spousal/beneficiary concerns come in to play as well of course.
by bradpevans
Fri Jul 12, 2019 4:57 pm
Forum: Personal Investments
Topic: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?
Replies: 40
Views: 4198

Re: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?

I lean toward the invest rather than pay down camp, especially at 4% (or lower) 1) If you could buy a guaranteed fund at 4%, would you put ALL of your money into it? at certain phases of life, certainly yes. but probably not during accumulation phase my AA is very aggressive, so that may cloud my vi...
by bradpevans
Fri Jul 12, 2019 4:48 pm
Forum: Personal Investments
Topic: $13 Million Goal for Early Retirement (am I crazy?)
Replies: 189
Views: 40566

Re: $13 Million Goal for Early Retirement (am I crazy?)

I haven't read through the entire thread, just kind of jumped to the end, so maybe this has already been covered. But be careful about extrapolating the returns you have seen over the past 10 years going forward. I started investing in the early-to-mid 1990s. The market was very hot. I even got in ...
by bradpevans
Wed Jul 10, 2019 7:15 am
Forum: Investing - Theory, News & General
Topic: No advantage to doing Roth conversions?
Replies: 21
Views: 2860

Re: No advantage to doing Roth conversions?

Being age mid-60’s, the next few years offer a window to convert IRA savings (which are 80% of total savings) to Roth IRA and stay within lower income tax bracket. I really like the Optimal Retirement Planner spreadsheet (i-ORP.com) for modeling various conversion strategies... from no conversion a...
by bradpevans
Tue Jul 09, 2019 9:44 pm
Forum: Personal Investments
Topic: Roth IRA Convesion
Replies: 6
Views: 699

Re: Roth IRA Convesion

Hello, I am 65 year old and will retire on September 3rd 2019. I will be getting a years separation package. I started collecting a pension from my previous company and will start collecting SSN at the age of 66 in June of 2020. My husband and I have enough money from his and mine pensions that we ...
by bradpevans
Sun Jul 07, 2019 5:23 pm
Forum: Personal Consumer Issues
Topic: How warm to set thermostat while away
Replies: 62
Views: 4821

Re: How warm to set thermostat while away

I'd like to save on my electric bill while I'm away on vacations but live in the hot, high humidity climate. I don't want my house getting musty or worse developing mold. Should I just set the thermostat a degree or two warmer than what I normally keep it at or would I be fine going warmer? We put ...
by bradpevans
Fri Jul 05, 2019 1:21 pm
Forum: Personal Investments
Topic: Best way to plan for $620K long term capital gains?
Replies: 18
Views: 2435

Re: Best way to plan for $620K long term capital gains?

the "single equity exposure risk" says get out immediately. (I'm not suggesting that) I would build out an Excel file that lets you consider different scenarios: a) sell all now b) sell all in a few years (when other income is less) c) sell 20%/year over five year (and other variations on that theme...
by bradpevans
Thu Jul 04, 2019 4:38 pm
Forum: Personal Consumer Issues
Topic: Does this car exist? Sexy convertible with a backseat
Replies: 53
Views: 3478

Re: Does this car exist? Sexy convertible with a backseat

Let's be serious. The OP stated he likes to drive manual and is not thrilled by the looks of 1, 2 and 4 series (but likes the pre-restyling Z4). How can someone suggest him the likes of cadillacs, camaros, or mustangs ? LOL. Thank you. The Camaro is slightly more appealing than the others but I was...
by bradpevans
Wed Jun 19, 2019 2:25 pm
Forum: Investing - Theory, News & General
Topic: Help with math
Replies: 34
Views: 2352

Re: Help with math

The more typical variation on this theme is to compare: Invest X (once) at age 20. Wait till 65. This is the "start early" scenario Invest Y (every year) starting at 40/45/50 (etc). This is the "play catch-up" scenario First scheme wins due to compounding over decades vs. bigger investments later Ea...
by bradpevans
Tue Jun 18, 2019 9:04 pm
Forum: Personal Investments
Topic: Big changes, Retirement is Imminent
Replies: 23
Views: 2977

Re: Big changes, Retirement is Imminent

I get uncomfortable when I consider making significant changes to our retirement portfolio. A lot of thought went into getting it to where it is today. I need to challenge my decision making process to make sure I am making a logical decision, not an emotional decision. I also need to consider the ...
by bradpevans
Tue Jun 18, 2019 8:54 pm
Forum: Personal Investments
Topic: RMDs vs voluntary withdrawals?
Replies: 6
Views: 915

Re: RMDs vs voluntary withdrawals?

Hi, we're mostly retired, our investment income puts us in the 22% fed tax bracket. I'm 63, my wife is 55. I've been analyzing if it makes financial sense to withdraw IRA money to the top of the 22% tax bracket. I don't think it makes sense because I'll lose the value of tax-free compounding on the...
by bradpevans
Tue Jun 18, 2019 8:12 pm
Forum: Personal Investments
Topic: Pension Lump Sum amount drops after age 65
Replies: 20
Views: 1345

Re: Pension Lump Sum amount drops after age 65

My pension dropped at 65 because it assumed I would take Social Security - but I waited until 70. Didn't have a lump sum choice. While I didn't mention, i also have two different options that involve "Social Security Leveling", with concept being to keep the monthly amount more equal via (Larger mo...
by bradpevans
Tue Jun 18, 2019 1:31 pm
Forum: Personal Investments
Topic: Pension Lump Sum amount drops after age 65
Replies: 20
Views: 1345

Re: Pension Lump Sum amount drops after age 65

I get that the lump sum might start to drop as one ages due to shortened life expectancy. What I don't understand is that your monthly payout choice also declines with presumably more years of service. You are still working, right? Is there any freeze on the pension or have there been any major cha...
by bradpevans
Tue Jun 18, 2019 1:00 pm
Forum: Personal Investments
Topic: Pension Lump Sum amount drops after age 65
Replies: 20
Views: 1345

Re: Pension Lump Sum amount drops after age 65

It will also drop as you approach your expected life expectancy. For example, if your actuarial death date is age 80 and you calculate retirement at age 65, the lump has to last you 15 years. At age 66, only 14 years. Perhaps up to age 65 it continues to assume you are working, getting raises, and ...
by bradpevans
Tue Jun 18, 2019 12:57 pm
Forum: Personal Investments
Topic: Pension Lump Sum amount drops after age 65
Replies: 20
Views: 1345

Re: Pension Lump Sum amount drops after age 65

Morford wrote:
Tue Jun 18, 2019 12:55 pm
I'm curious what kind of tool your company has that lets you play with the pension assumptions?
The tool is by way of Fidelity, which manages 401k/pension/etc and generates different scenarios based on:
1) when you stop working
2) when you start collecting
3) beneficiary (spouse / none / etc)