Search found 21 matches

by LthanP
Sat Dec 28, 2019 9:25 am
Forum: Personal Investments
Topic: retirement income - dividends and interest vs total return
Replies: 12
Views: 1164

Re: retirement income - dividends and interest vs total return

Just an example from an older person that wants income: I manage (authorized trader) the income portfolio for my Uncle who is 84. It produces varied income every month. The key for me is I ask him "Do you need this money?" The answer is always no! For you , if I read correctly, the answer for you is...
by LthanP
Fri May 31, 2019 5:49 pm
Forum: Investing - Theory, News & General
Topic: Do you have an allocation more conservative than 50/50 ?? What is it? Why? How Bogleheads are getting it done.
Replies: 153
Views: 17325

Re: Do you have an allocation more conservative than 50/50 ?? What is it? Why?

Allocation 40/60 Why? Desire reduced volatility when it matters most to me, just before retirement. Wade Pfau's book recommended by several on this board (How much can I spend in retirement) influenced me and especially chapter 3 Spending from Volatile Investments and Sequence of Returns Risk. Our ...
by LthanP
Wed May 29, 2019 2:32 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

OP here.
I ended up opening a HELOC for any emergencies in the short term. It took about 15 business days start to closing and I completed the app and closing all online.
Thanks for your inputs. I am now working on $$ outside of the retirement accounts.
by LthanP
Wed May 29, 2019 1:59 pm
Forum: Investing - Theory, News & General
Topic: Do you have an allocation more conservative than 50/50 ?? What is it? Why? How Bogleheads are getting it done.
Replies: 153
Views: 17325

Re: Do you have an allocation more conservative than 50/50 ?? What is it? Why?

Allocation 40/60 Why? Desire reduced volatility when it matters most to me, just before retirement. Wade Pfau's book recommended by several on this board (How much can I spend in retirement) influenced me and especially chapter 3 Spending from Volatile Investments and Sequence of Returns Risk. Our I...
by LthanP
Wed Feb 13, 2019 8:35 pm
Forum: Investing - Theory, News & General
Topic: What Is Your Favorite Bogle Quote?
Replies: 48
Views: 3134

Re: What Is Your Favorite Bogle Quote?

“The Songs I Sang Will Still Be Sung."

+1 Stay the Course
by LthanP
Wed Feb 13, 2019 7:45 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 5143
Views: 1317087

Re: What Movie Have You Recently Watched?

Enjoyed Eighth Grade, Would I watch it with an 8th grade daughter, likely not. Watched with my college age daughter. We enjoyed it and found it funny and positive message getting through that time period. Bo Burnham first film as writer and director.
by LthanP
Wed Feb 06, 2019 5:29 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

Yes my company 401K plan notes that if I use the Separation from Service 72(t)(2)(A)(v) exemption from 10% penalty, I have to take my full amount out , not just what I need for living expenses for 1-2 years and or emergency. I will find out if I can withdraw the whole amount as two different items....
by LthanP
Wed Feb 06, 2019 5:22 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

And thank-you all for your help. It really has brought clarity to my situation and I have plan of action.
by LthanP
Wed Feb 06, 2019 5:20 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

Updated original post for clarity on need money for living expenses and not just emergency and specifics on using Separation from Service 72(t)(2)(A)(v) , not series of substantially equal payments 72(t)(2)(A)(iv)
by LthanP
Wed Feb 06, 2019 5:18 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

You seem to be really focused in an emergency fund in the event of losing your job, If you have to leave your company, then you can rollover your 401(k) to an IRA. You will be able to withdraw from your cash balance based on the 72(t) rule. You will pay ordinary income taxes on the withdrawals. But...
by LthanP
Wed Feb 06, 2019 5:08 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

OP, you only have another two years or so before you can draw on 401k without penalty. If an emergency comes up in the meantime that involves separation from your employer, your best bet is to first draw on the HSA (assuming you have unreimbursed receipts) and Roth IRA contributions. Many people th...
by LthanP
Wed Feb 06, 2019 4:59 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

As I understand, if you leave your employer after age 55 / in the year you turn 55, you can withdraw from *that* 401k without the usual 10% penalty this is much friendlier than the 72T situation. See here: https://www.thebalance.com/what-is-the-rule-of-55-2894280 He is already 57 so he's beyond the...
by LthanP
Wed Feb 06, 2019 4:46 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

You seem to be really focused in an emergency fund in the event of losing your job, If you have to leave your company, then you can rollover your 401(k) to an IRA. You will be able to withdraw from your cash balance based on the 72(t) rule. You will pay ordinary income taxes on the withdrawals. But...
by LthanP
Wed Feb 06, 2019 4:26 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

I believe the OP is talking about the separation of service after age 55 exemption 72(t)(2)(A)(v) not the SEPP exemption 72(t)(2)(A)(iv) While we are being terminologically correct: calling SEPP "72t" is unbelievably sloppy. Every exemption to the 10% early withdrawal penalty, including being over ...
by LthanP
Wed Feb 06, 2019 11:24 am
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

Anybody else rely on the 72t rule? As an emergency tool? So in a nutshell , I am thinking an emergency fund for someone in the 40's age range maybe much different than in late 50's with retirement in the horizon. I hope this make sense. -LTP Good advice from other posters on your questions. Regardi...
by LthanP
Wed Feb 06, 2019 10:35 am
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

aristotelian , Thank-you your reply and helping me with clarity of my situation. I appreciate it. 1) Your idea of taking out student loans to pay for daughter's senior year would free up 26K (tuition) in cash flow for us this year. We could increase emergency fund to 35K by end of 2019 doing this fo...
by LthanP
Wed Feb 06, 2019 7:57 am
Forum: Investing - Theory, News & General
Topic: If you are old, why bother with rebalancing!!?
Replies: 115
Views: 9772

Re: If you are old, why bother with rebalancing!!?

I would love to get to that point, I have not updated my word doc that has our Investment Policy Statement since 10-8-2017. But adding these lines would make it easier than what I have now :sharebeer "If one has any portfolio of equities:bonds in an asset allocation of between 30:70 and 70:30 and on...
by LthanP
Tue Feb 05, 2019 10:15 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Re: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

Nate79, I don't want to envision anything hitting my family, but know that's not realistic. I do feel a job loss is a major event for an emergency fund. Illness is another. And the idea of an emergency fund is to tap it so you don't have to go into debt and can pay for the emergency event. I do have...
by LthanP
Tue Feb 05, 2019 7:57 pm
Forum: Personal Investments
Topic: Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund
Replies: 30
Views: 1418

Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund

Greetings and question on your thoughts on using 72t 401K separation rule as emergency fund and pay for living expenses. An Introduction as my first post: Ages Me 57 and wife 55 at end of 2019 Screen Name - LthanP Avatar - A picture I took in Berkeley CA Reason for Screen Name; LP Vinyl - I love mus...