Search found 2110 matches

by Meg77
Mon Dec 11, 2017 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Help for Mom - Retiring, Windfall, Edward Jones
Replies: 9
Views: 1891

Re: Help for Mom - Retiring, Windfall, Edward Jones

So I had assumed that annuitizing some of her assets (if that's a real verb) would be an ideal way to give her a baseline fixed income. This is because her small pension and SS income will cover less than half her expenses and also because most of her money is in taxable accounts. But after looking...
by Meg77
Sun Dec 10, 2017 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford? (First Home)
Replies: 27
Views: 2187

Re: How much house can I afford? (First Home)

Rent!! This will give your spouse the utmost flexibility when it comes to selecting a residency program and ultimate job. Plus it's cheaper. Plus you could use your savings to enable her to graduate debt free and not accumulate a massive amount of student loans. Plus, you can't afford to buy in the ...
by Meg77
Sun Dec 10, 2017 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Help for Mom - Retiring, Windfall, Edward Jones
Replies: 9
Views: 1891

Re: Help for Mom - Retiring, Windfall, Edward Jones

So I had assumed that annuitizing some of her assets (if that's a real verb) would be an ideal way to give her a baseline fixed income. This is because her small pension and SS income will cover less than half her expenses and also because most of her money is in taxable accounts. But after looking ...
by Meg77
Sun Dec 10, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: End of year financial checklist
Replies: 2
Views: 650

Re: End of year financial checklist

In light of probable tax law changes that go into effect next year, I'd accelerate any deductions you stand to lose, such as paying state and local and property taxes in December versus Q1 next year if you're able (unless you're going to be hit by the AMT this year, in which case you won't benefit f...
by Meg77
Fri Dec 08, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: New to investing: Tax efficient fund placement???
Replies: 10
Views: 442

Re: New to investing: Tax efficient fund placement???

To elaborate, holding international stocks in your taxable account allows you to take a deduction on the foreign tax that you pay. So the benefit of holding international stocks in taxable goes further than just looking at distributions and whether or not they are high (at least under current tax la...
by Meg77
Fri Dec 08, 2017 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in my early 40s? Crazy or actually doable?
Replies: 71
Views: 8453

Re: Retire in my early 40s? Crazy or actually doable?

I know I am heavily invested in long term municipal bonds. I would like to eventually get to a 50/50 stock/bond ratio in my taxable account, but I am considering going with a slow reverse glide path approach. I have enough interest income coming off in municipal bonds to pay for my annual living ex...
by Meg77
Fri Dec 08, 2017 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in my early 40s? Crazy or actually doable?
Replies: 71
Views: 8453

Re: Retire in my early 40s? Crazy or actually doable?

Congrats on your position! In short, you can retire now and draw $85,500 from your portfolio indefinitely, adjusting the amount upward to account for inflation each year. A 3% withdrawal chance has a reasonably good chance of never depleting your portfolio. So does a 4% return, but given your very l...
by Meg77
Fri Dec 08, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Screwed over with regards to 401k distribution. What can I do?
Replies: 16
Views: 1558

Re: Screwed over with regards to 401k distribution. What can I do?

I'd be pissed too, but don't panic. You have time to deposit the funds to the custodian of your choice. The key is that you have to deposit 100% of the rollover amount to avoid the taxes and penalties. If your former employer withheld taxes from your check, then you need to deposit that check PLUS w...
by Meg77
Thu Dec 07, 2017 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: House on the market less than a day. Did listing agent commit fraud?
Replies: 56
Views: 6848

Re: House on the market less than a day. Did listing agent commit fraud?

In my neighborhood sometimes we get "coming soon" flyers for area homes that are going to be put on the market soon. We also see homes go under contract within a day or so of the listing going live. I asked a realtor friend about this practice once, and he explained that sometimes the realtor is try...
by Meg77
Thu Dec 07, 2017 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: SSN on job applications
Replies: 33
Views: 1711

Re: SSN on job applications

I can't imagine that those looking to steal personal information are targeting former potential employee applications. How would one even go about that? I'm sure most physical applications are shredded (or discarded without being shredded worst case) within about a day of the interview process havin...
by Meg77
Thu Dec 07, 2017 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: What do Bogleheads say when they don't want to spend money?
Replies: 103
Views: 5374

Re: What do Bogleheads say when they don't want to spend money?

My dad talks about how much harder it was to say "no" to us as kids and teens once "we can't afford that" wasn't accurate. When he was growing up and while I was very young, "we can't afford that" was the simple end of any pleading or arguing we tried to do to get a toy/McDonald's/whatever. Once tha...
by Meg77
Thu Dec 07, 2017 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: Help for Mom - Retiring, Windfall, Edward Jones
Replies: 9
Views: 1891

Re: Help for Mom - Retiring, Windfall, Edward Jones

At a minimum, while getting the plan in place, ensure dividend reinvestment is turned off such that all dividends go to your settlement fund. That'll help with the single-stocks, expensive funds, and not sure about single-bonds... might just sell those right-off if you prefer a bond-fund. Thanks fo...
by Meg77
Thu Dec 07, 2017 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Re-inventing career in mid 30s? Law? Tech? Sales?
Replies: 18
Views: 2205

Re: Re-inventing career in mid 30s? Law? Tech? Sales?

I think it's normal and appropriate to take some time to re-evaluate your options during a period of transition, particularly between jobs. I'm in my mid 30's too and have done no small amount of soul-searching and second guessing my career and life plans. We are at the age where many of us have put...
by Meg77
Thu Dec 07, 2017 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: First post from this retiree with questions - my daughter sent me here!
Replies: 34
Views: 3830

Re: First post from this retiree with questions - my daughter sent me here!

A very easy and appropriate first step would just be to stop reinvesting the dividends in your other account. The yield on your bond fund alone will give you another $520 a month based on the current 2.52% yield. That is a nice cushion for entertainment and some fun money. If all you do is take the ...
by Meg77
Wed Dec 06, 2017 2:58 pm
Forum: Personal Consumer Issues
Topic: Do people still use AAA?
Replies: 163
Views: 9117

Re: Do people still use AAA?

I lock my keys in my car about once a year and use AAA for that. Have used them for a flat tire in the past as well. The $40 a year or whatever I pay is worth it, though I didn't realize there were really alternatives I have to say...
by Meg77
Wed Dec 06, 2017 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Help for Mom - Retiring, Windfall, Edward Jones
Replies: 9
Views: 1891

Re: Help for Mom - Retiring, Windfall, Edward Jones

It sounds like a phone conversation with Vanguard is in order. Have statements in hand or lists of her funds/stocks/munis. I am fairly sure that transferring loaded American funds in-kind will be no problem. You can even buy them there! Tax cost in selling vs. ER costs and CG/dividend distribution ...
by Meg77
Wed Dec 06, 2017 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Will I make it? (Another "evaluate my financials" post..)
Replies: 19
Views: 1419

Re: Will I make it? (Another "evaluate my financials" post..)

If you keep investing $18,000 a year for retirement, your portfolio should hit $1,000,000 the year you turn 60 assuming a 7% annual rate of return. Five years after that it should exceed $1,500,000. That doesn't factor in inflation, but presumably you'd increase annual contributions over time as wel...
by Meg77
Wed Dec 06, 2017 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Help for Mom - Retiring, Windfall, Edward Jones
Replies: 9
Views: 1891

Help for Mom - Retiring, Windfall, Edward Jones

Hi Bogleheads, My mother has asked me to create a financial plan for her and help her invest a pending windfall. She's been with Edward Jones for many years, but several major changes are prompting an overhaul: her advisor is retiring, she is shifting from accumulation to withdrawal mode, and she ex...
by Meg77
Fri Dec 01, 2017 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: So i hit 6 figures... (questions about financials)
Replies: 19
Views: 3718

Re: So i hit 6 figures... (questions about financials)

Congratulations! You are doing amazingly well. :) You can definitely afford to upgrade housing and live alone, and I think you should go for it. Just aim to spend less than 25% of your take home pay on housing (including utilities) if at all possible. This will leave room for saving and other fun sp...
by Meg77
Fri Dec 01, 2017 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Reached 4M target. Taking money off table. Advice?
Replies: 100
Views: 13580

Re: Reached 4M target. Taking money off table. Advice?

You're financially independent. Congratulations! You could spend $100K a year and never run out of money in the vast majority of situations, especially since you haven't factored in social security and have another $1M or so coming your way in an inheritance. Financially, you don't have much to do. ...
by Meg77
Thu Nov 30, 2017 2:48 pm
Forum: Personal Consumer Issues
Topic: After financial independence, do you lose motivation for work?
Replies: 156
Views: 11107

Re: After financial independence, do you lose motivation for work?

Another encouraged thinking of your day as simply a series of activities. What if the money you got every month wasn't connected to your activities. How would they change? This concept doesn't make any sense to me. If I received $5,000 a month simply as a consequence of being alive and getting out ...
by Meg77
Thu Nov 30, 2017 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Decision Needed - How to Invest Rental Income?
Replies: 16
Views: 633

Re: Decision Needed - How to Invest Rental Income?

We'd need a lot more detail to help - like whether you're already saving, what your savings rate is, if you're maxing out retirement accounts, if you have other debt and what the rates are, etc. In general though without any context, I'd tell you to keep that cash on hand for a year without doing an...
by Meg77
Thu Nov 30, 2017 11:44 am
Forum: Personal Consumer Issues
Topic: After financial independence, do you lose motivation for work?
Replies: 156
Views: 11107

Re: After financial independence, do you lose motivation for work?

I happened to be reading a section of Your Money or Your Life last night that discussed the nature of work and the benefit of separating the concept of "wages" from the concept of "work." I was drifting off so will have to paraphrase and re-read the chapter later, but one passage struck me. It said ...
by Meg77
Thu Nov 30, 2017 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Advice/suggestions for wife's new company
Replies: 13
Views: 1045

Re: Advice/suggestions for wife's new company

One option to consider is that your wife (or whoever is the primary person leading this charge / putting in start up capital) be 100% owner and have her former colleague be a contract employee. They can set up an employment agreement to say that profits are split 50/50 between the two women without ...
by Meg77
Wed Nov 29, 2017 3:39 pm
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7248

Re: Is there any reason to invest in real estate?

My logic is as follows: - Suppose Bob is your typical real estate investor - purchases one or two additional properties and rents them out - Suppose there are 1000 of other people in the country, doing the same thing as Bob - It seems REIT funds are essentially pooling the 1000 investors money, mak...
by Meg77
Wed Nov 29, 2017 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 1919

Re: Estate planning question (should we add beneficiaries to savings account?)

Bad idea to distribute the IRAs immediately unless immediate bills make that necessary. Separate inherited IRA accounts should normally be created for each beneficiary. The inherited IRAs can then be stretched over the life expectancy of each beneficiary. That continues tax deferral and eliminates ...
by Meg77
Wed Nov 29, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Currently have $700,000 at 26 years old get $100,000 a year
Replies: 165
Views: 25860

Re: Currently have $700,000 at 26 years old get $100,000 a year

Congrats on not blowing it all so far. I graduated from college with about $350k left in my college fund and, like you, I was more interested in watching that money grow and ensuring my sense of security/freedom. I partied and read and dated a lot too in my early 20s - no judgement here. I also lear...
by Meg77
Wed Nov 29, 2017 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 1919

Re: Estate planning question (should we add beneficiaries to savings account?)

Bad idea to distribute the IRAs immediately unless immediate bills make that necessary. Separate inherited IRA accounts should normally be created for each beneficiary. The inherited IRAs can then be stretched over the life expectancy of each beneficiary. That continues tax deferral and eliminates ...
by Meg77
Wed Nov 29, 2017 9:38 am
Forum: Personal Finance (Not Investing)
Topic: FIRE [financial independence/retire early]
Replies: 132
Views: 11697

Re: FIRE [financial independence/retire early]

The primary difference between the two groups is in level of expenses that is considered appropriate/desirable - and the speed at which retiring is a goal. FIRE bloggers and advocates usually want to retire ASAP and embrace relatively "extreme" frugality in order to do so (and on principal); they a...
by Meg77
Tue Nov 28, 2017 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE [financial independence/retire early]
Replies: 132
Views: 11697

Re: FIRE [financial independence/retire early]

. . . . I'm just wanting to get others' opinions on these ideas and really interested in h ow people are financing health care. For those retiring early and Financially Independent. Depending on circumstance and size of portfolio. . might include the following, and more not listed: 1. Retiring with...
by Meg77
Tue Nov 28, 2017 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE [financial independence/retire early]
Replies: 132
Views: 11697

Re: FIRE [financial independence/retire early]

I read a lot of FIRE blogs and enjoy them. There is no real difference in the way FIRE proponents define FI and the way Bogleheads do. Both groups generally embrace the 4% rule - though there is plenty of discussion/disagreement about exact asset allocation optimization targets, whether the 4% rule ...
by Meg77
Tue Nov 21, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Time for my checkup - **Warning - long post**
Replies: 16
Views: 1910

Re: Time for my checkup - **Warning - long post**

Assets Current asset allocation per Morningstar X-ray: US Equity - 50% Foreign Equity - 25% Fixed Income - 15% Cash - 10%, Average Expense Ratio: 0.29% My wife's investments were picked by her financial advisor at Edward Jones in both her roth/401k. They're significantly more expensive than mine, b...
by Meg77
Tue Nov 21, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Concerned parent :(
Replies: 56
Views: 7320

Re: Concerned parent :(

Save for him if you want to, but the best thing you can do for a 12 year old financially speaking is to teach him the value - and excitement - of working and saving and investing (and giving and spending too, within reason). If he's a reader, give him a book on the subject. I started my first broker...
by Meg77
Mon Nov 20, 2017 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Question re: my high fee 401k plan/my investments
Replies: 13
Views: 1070

Re: Question re: my high fee 401k plan/my investments

I would 100% put all of your 401k assets and future contributions into the S&P 500 index. That's what I do and what my husband does as well. We use Roths and taxable to diversify further with bonds/international/small caps as we can. In a perfect world we'd just use total market index funds, but our...
by Meg77
Mon Nov 20, 2017 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Another "To Rent or Sell" Question
Replies: 10
Views: 643

Re: Another "To Rent or Sell" Question

I'll add that I managed my rentals myself for a few years, but I hired a property manager a few years ago and it has definitely been worth the money. Actually they've helped me get such cost savings on repairs and maintenance that it has more than made up for their fee. My cash flow on average incre...
by Meg77
Mon Nov 20, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Another "To Rent or Sell" Question
Replies: 10
Views: 643

Re: Another "To Rent or Sell" Question

Hi there, landlord here. A couple of clarifications: --You want to assume that you'll have 1 month of vacancy per year in case tenants move every year (it'll take a month on average to clean up the place and get it re-leased). So if you can charge $1900 a month your annual income will be more like $...
by Meg77
Mon Nov 20, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Year end windfall and job loss
Replies: 16
Views: 2426

Re: Year end windfall and job loss

Can you more than support your normal expenses on just your income? Yes but no savings are possible Then pay off the loan. It seems obvious. If "no savings are possible" includes contributing your 401k or other tax-advantaged retirement accounts, draw down from taxable the amount required to keep f...
by Meg77
Mon Nov 20, 2017 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Pay down a 3.25% 15-year mortgage?
Replies: 25
Views: 3976

Re: Pay down a 3.25% 15-year mortgage?

If you're just looking for the best place to put $3K a month, paying off a loan with an effective rate of around 2% (depending on your state tax bracket) is only about as good as inflation. You ARE getting the tax deduction on the rental mortgage interest, you just can't realize it every year becau...
by Meg77
Wed Nov 15, 2017 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Pay down a 3.25% 15-year mortgage?
Replies: 25
Views: 3976

Re: Pay down a 3.25% 15-year mortgage?

Based on your numbers, you are breaking even on the investment or making $100 or so a month, even after taking the mortgage interest expense into account. That's not great of course, but it's not bad enough for me to be in a hurry to lock in a 6 figure loss on the place either. I wouldn't be in a hu...
by Meg77
Tue Nov 14, 2017 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Mother in retirement: Withdraw annually or monthly?
Replies: 19
Views: 2019

Re: Mother in retirement: Withdraw annually or monthly?

In general if someone is used to being paid monthly or bi-monthly, monthly retirement distributions simulate that and may make budgeting easier (even if just psychologically). Financially I think monthly is ideal as well, since selling all at once puts you more at market timing risk. I wouldn't want...
by Meg77
Fri Nov 10, 2017 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Decision
Replies: 15
Views: 1100

Re: Refinance Decision

Hey there, banker/lender here. This refinance definitely makes sense when you break it down - a lot of the things being considered are really just noise though. The refinance appears to be a true no closing cost refinance. Property taxes and home insurance are not refinance closing costs - they are ...
by Meg77
Thu Nov 09, 2017 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Planning for a surviving spouse's income
Replies: 16
Views: 1716

Re: Planning for a surviving spouse's income

So my general question is: have you based your asset allocation on the worst case scenario of looking out for the survivor who will have lesser guaranteed income streams? Or have you gone more aggressive figuring that your spouse can reallocate appropriately once she is on her own? Or something els...
by Meg77
Wed Nov 08, 2017 4:27 pm
Forum: Personal Consumer Issues
Topic: Breaking point to get a new to newish car
Replies: 59
Views: 3486

Re: Breaking point to get a new to newish car

It's always going to be cheaper to keep the older, paid off car - even considering repairs - than to buy a much newer one. But cheaper doesn't mean it makes sense. Here's how to consider repairs. If the car really is worth $5000 then you would never want to do a $1000 repair if that repair isn't goi...
by Meg77
Wed Nov 08, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: What is a reasonable emergency fund for HI family?
Replies: 67
Views: 3932

Re: What is a reasonable emergency fund for HI family?

I argue that the higher your income, the less you may need an EF. I don't keep one at all anymore. My reasons are as follows: 1. My husband and I both work, and we each earn enough to cover our typical household expenses if the other were to get laid off. Our actual fixed, non-discretionary costs ar...
by Meg77
Wed Nov 08, 2017 2:31 pm
Forum: Investing - Theory, News & General
Topic: Open a Roth but Vanguard minimum investment too high?
Replies: 19
Views: 1089

Re: Open a Roth but Vanguard minimum investment too high?

Do you have other investments? A 401(k) or similar plan? Generally one doesn't look at the Roth in isolation. Hi Earl. I just wanted to add two Roth IRAs for my wife and I. I want to start working maxing these out each year. My investments so far looks like this: TSP 401K: $42,679.64 (50% is pre-ta...
by Meg77
Wed Nov 08, 2017 12:05 pm
Forum: Investing - Theory, News & General
Topic: The average American retiree household
Replies: 57
Views: 10920

Re: The average American retiree household

Averages and even medians don't tell you much. Plus even to the extent that reports on retiree income and assets are accurate (which I always doubt), they don't tell you nearly as much as you think. I have retired family members and clients with incredibly low taxable income who have plenty of wealt...
by Meg77
Tue Nov 07, 2017 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: Preparing For "Early Retirement" In A Couple of Years
Replies: 77
Views: 7639

Re: Preparing For "Early Retirement" In A Couple of Years

Background: My wife caught on in the last year of my bogleheads tactics and that we're actually a lot richer than she thought. After she made this realization, she now wants us both to quit our jobs and travel the world (or something of the sort). ... My wife has run copious amounts of spreadsheets...
by Meg77
Mon Nov 06, 2017 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Why make more money?
Replies: 134
Views: 13224

Re: Why make more money?

Lets just assume that you are healthy and financially OK. You have have 30x expenses in investments plus whatever socials security will eventually give you in some distant future. You have no debt and the kids college is covered. You don't live extravagantly, but you have enough to travel, eat out,...
by Meg77
Thu Nov 02, 2017 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Low income but good savings rate... spend?
Replies: 23
Views: 2359

Re: Low income but good savings rate... spend?

I majored in a degree that does not pay well. I didn't know what I wanted to do and just wanted to finish college. I was foolishly under the impression that as long as I have a Bachelor's Degree in "anything", I could do well financially. I've thought about this many times and I regret it a lot but...
by Meg77
Thu Nov 02, 2017 11:54 am
Forum: Personal Finance (Not Investing)
Topic: I'm fairly young but done with saving money
Replies: 75
Views: 9522

Re: I'm fairly young but done with saving money

Congrats on your success. Your savings give you choices, but having too many choices can also be stressful as any psychology student can explain. I'm in a similar situation, and I've been thinking a lot about the kinds of questions you're asking over the last year. My husband and I are in our 30s, h...