Search found 548 matches

by Independent
Sun Apr 08, 2018 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Structuring Newlywed Finances for Fairness and Less Arguments
Replies: 84
Views: 8406

Re: Structuring Newlywed Finances for Fairness and Less Arguments

There have been years where my wife earned more and years when I earned more. Neither of us ever suggested that the difference in earnings should translate into a difference in spending. Our wedding vows included "for better and for worse, for richer and for poorer". We thought that meant we agreed ...
by Independent
Sun Apr 08, 2018 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Ivy school education. Is it worth it?
Replies: 238
Views: 19170

Re: Ivy school education. Is it worth it?

Elite schools do not cause success, they are sorting mechanisms that admit kids who will be successful going anywhere. Research has proven this. Google Krueger and Berg Dale for the studies. An ambitious, curious, and hard-working student can get just as far by going to State U as to Yale. Where di...
by Independent
Mon Dec 18, 2017 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance After Retirement
Replies: 13
Views: 1077

Re: Term Life Insurance After Retirement

No

When I die, about one-third of our combined expenses die with me.

My wife will get about two-thirds of our combined income (pension + SS), and will get 100% of our assets.

No need for life insurance.
by Independent
Mon Dec 11, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Can we afford to live on one income?
Replies: 70
Views: 7076

Re: Can we afford to live on one income?

Of course you can afford to live on one income. The median income for a US married couple with children at home is under $100k. So, somehow, more than half the couples with kids would be very happy with $137K. The real question is "What would we need to give up?". I think most posters answered that ...
by Independent
Sat Dec 09, 2017 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: For those retired at least 10 years, what about the money?
Replies: 47
Views: 8307

Re: For those retired at least 10 years, what about the money?

I just turned 70. I've been retired since 2006. The market had a historically bad drop soon after we retired. It's up now, but I don't trust PEs above 20. Something will change in the future. So I'm not giddy about the market. Our planning for our own expenses worked out fine. We didn't plan on step...
by Independent
Thu Dec 07, 2017 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: What did you do with your first RMD withdrawal money?
Replies: 71
Views: 7980

Re: What did you do with your first RMD withdrawal money?

I will take my first RMD withdrawal next year. We have enough income from other sources to cover our normal expenses. The IRA is money for long term care expenses. So the RMD should go into some investment that is reasonably liquid and reasonably stable, but with some positive return. It should be t...
by Independent
Wed Dec 06, 2017 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage as percentage of take-home pay
Replies: 79
Views: 11835

Re: Mortgage as percentage of take-home pay

"A standard rule for lenders is that your monthly housing payment (principal, interest, taxes and insurance) should not take up more than 28 percent of your income before taxes." When we were buying, I thought the comparison should be to before tax income, because most of our mortgage payment was ta...
by Independent
Sun Dec 03, 2017 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

$96,000 / $760 = 126 month = 10.5 years after age 70 = age 80.5 That's the breakeven assuming 0% real interest. But, note that breakeven is just a starting point for people who feel they really need longevity insurance. That's for a single person. Note that if you're married, and your spouse has a ...
by Independent
Fri Dec 01, 2017 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

If you started at age 62 with $1,000 a month you would have received $96,000 by age 70. That's a loss of $96,000 if you wait until age 70 to start collecting. How long would it take with the "higher" benefits at age 70 to make up the $96,000 loss? And there's a "health depreciation" factor that nee...
by Independent
Wed Nov 29, 2017 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

The actual number is $16.32K. 8% compounded over 4 years is 36% Now you are looking at extra $4.3K Looking at the break even point, that would be (12x4)/4.3 = 11 years. If you plan to exit this world before 81 years old, then take the SS at FRA rather than waiting for 4 years. Your 24 year calculat...
by Independent
Mon Nov 27, 2017 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

Actually, the life expectancy for your cohort, folks born in the same year, continues to increase each year for the surviving members. It's called Conditional Probability, as in: What is my expected lifespan given that I have reached age 60 in nominal health? Following table may be of interest to s...
by Independent
Mon Nov 27, 2017 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Regrets for taking SS at 62 or waiting?
Replies: 100
Views: 12087

Re: Regrets for taking SS at 62 or waiting?

...Statement Assumptions As noted above, benefits are estimated using the PIA formula for the year the Statement is sent. When computing the AIME that is used in the PIA formula, current-year and all future preretirement earnings are assumed to be equal to observed earnings in the latest full year....
by Independent
Sun Nov 26, 2017 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

Just curious but how much do you think most BH couples annual SS benefit will be? I think you may be under estimating the size of the benefit for many BH especially those who have substantial savings as they likely held well paying jobs. The numbers are around $35K for a professional person who has...
by Independent
Sun Nov 26, 2017 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

That's a life expectancy at birth, it's irrelevant to someone who has already lived to 62. You want the a expectancy at 62. so how would you know expectancy at 62? I'd say, it's still the same at birth. How do you know life expectancy at birth? If you looked it up in a table somewhere, the same tab...
by Independent
Sat Nov 25, 2017 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

Fortunately, most Bogleheads have so much savings that SS is just a little bit of fun money. This issue isn't going to make or break their retirement. It is one thing to state that Bogleheads have higher than average assets. It is another to claim that our SS is "fun money." I don't see evidence to...
by Independent
Sat Nov 25, 2017 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

The Wizard wrote:
Sat Nov 25, 2017 2:03 pm

I'm not an actuary, but I'm enough of a math nerd to know that we should be getting higher mortality credits the longer we delay and the SS DRC method isn't giving us that...
This is correct. But, it's possible they err in the direction of giving too much additional benefit to deferring.
by Independent
Sat Nov 25, 2017 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

Fortunately, most Bogleheads have so much savings that SS is just a little bit of fun money. This issue isn't going to make or break their retirement. It is one thing to state that Bogleheads have higher than average assets. It is another to claim that our SS is "fun money." I don't see evidence to...
by Independent
Sat Nov 25, 2017 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

The method used to compute delayed retirement credits after FRA is not actuarially correct. In my case, FRA of 66, I do indeed get an 8% increase if I were to claim at age 67 vs age 66. But from age 69 to 70, the increase is 1.32/1.24 = 1.064516, which is a 6.45% increase. If the 8% increase from 6...
by Independent
Sat Nov 25, 2017 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 34735

Re: Why not take Social Security at 62

My 2 cents. Take it at 62. Most people don't realize they die before they turn 78(life expectancy in US) That's a life expectancy at birth, it's irrelevant to someone who has already lived to 62. You want the a expectancy at 62. But, there is no single answer even for that. Females live longer than...
by Independent
Wed Jul 12, 2017 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security: Collecting at 70
Replies: 17
Views: 2533

Re: Social Security: Collecting at 70

I filed and suspended three years ago at 67. I'm trying to start benefits now. I got better help from my local office than the national number. BUT, it still got messed up. I got a letter confirming my start date and amount, and they were what I expected. A week later, a got a different letter with ...
by Independent
Wed Jan 27, 2016 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 1392

Re: Decreasing term life insurance linked to inflation?

Why would that be true? The company takes a fixed premium, to pay a fixed death benefit, and invests any early "over-payments" in fixed bonds. I don't see how inflation helps the company. Although life insurance companies practice a form of liability matching, it is imperfect due to the duration of...
by Independent
Wed Jan 27, 2016 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 1392

Re: Decreasing term life insurance linked to inflation?

I anticipated this question and answered two posts prior to you posing it. Regarding the additional premium note, my policy has listed on the cover sheet a "current annual premium" and a "maximum annual premium" Those numbers are the same for the initial term (25 years), so my policy premium cannot...
by Independent
Tue Jan 26, 2016 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 1392

Re: Decreasing term life insurance linked to inflation?

I suspect the chief reason is that inflation has a beneficial economic influence to the insurance company for most (virtually all) of their products- Why would that be true? The company takes a fixed premium, to pay a fixed death benefit, and invests any early "over-payments" in fixed bonds. I don'...
by Independent
Tue Jan 26, 2016 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 1392

Re: Decreasing term life insurance linked to inflation?

If this is what most people need, why doesn't it exist? Some ideas: It's complicated for the company. Different people will want different decreasing patterns and different terms. Some people will decide they don't really want to match prices, but rather their incomes (which they hope go up faster ...
by Independent
Tue Jan 26, 2016 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 1392

Re: Decreasing term life insurance linked to inflation?

So what I really want is something where the payout is in 2016 dollars, adjusted for inflation. Maybe the premium too. My Amica term life policy benefit is inflation adjusted. This policy has a fixed premium for the term of the policy . I did not pay extra for this. In fact, this policy was the low...
by Independent
Fri Jan 22, 2016 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Most anticipated retirement purchase
Replies: 107
Views: 10913

Re: Most anticipated retirement purchase

Yes, Time was the most desired and also most expensive "purchase" (most expensive in terms of lost wages). I don't regret retiring "early" and giving up lots of income. Travel, as a category, was the most expensive plan by far. First priority: I wanted to spend a couple months by myself, roaming nat...
by Independent
Fri Jan 22, 2016 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: My early retirement is causing consternation
Replies: 75
Views: 14299

Re: My early retirement is causing consternation

I retired at 59. I don't remember any uncomfortable questions, or derogatory comments. I had no trouble being honest about my reasons for leaving. I didn't like the new CEO, I'd reached financial independence, I thought more free time was better than more money. How much detail would have varied dep...
by Independent
Fri Jan 15, 2016 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: WLI: How many years to front load?
Replies: 5
Views: 997

Re: WLI: How many years to front load?

Yes, this is very complex. The standard advice around here is to not mix insurance and investments. So, nobody has any general guidelines on how much single premium WL you should buy (that's what you're getting with the paid up additions). You present your facts as a special case. Your boys may have...
by Independent
Wed Dec 16, 2015 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Math to include large fixed pension/annuity in retirement planning.
Replies: 19
Views: 2750

Re: Math to include large fixed pension/annuity in retirement planning.

I expect that my spending will go up with inflation. Because Social Security benefits are indexed for inflation, I can simply subtract them from my spending needs and then figure out how to cover the remainder from investment. But, I can't do that for a non-COLA'd pension. The best method is to use ...
by Independent
Sun Nov 29, 2015 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: Please critique my plan.
Replies: 4
Views: 897

Re: Please critique my plan.

A plan usually starts with goals. You didn't list yours.

It seems to me that your asset allocation might depend on whether you plan to start living on your investments 2 years from now, or 20 years from now.
by Independent
Fri Nov 20, 2015 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Scheduling SS appointment for File and Suspend: 2 month wait
Replies: 4
Views: 740

Re: Scheduling SS appointment for File and Suspend: 2 month wait

We had a 2-3 month wait. I'm sure that my wife was more comfortable talking to someone face-to-face.

The wait was long enough that her first deposit came after the normal date. Not a big problem. Though, if I were to do it again I'd make the appt sooner.
by Independent
Wed Nov 18, 2015 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life. Can someone sum up why its a sucker scam (in as few words as possible)
Replies: 60
Views: 8178

Re: Whole Life. Can someone sum up why its a sucker scam (in as few words as possible)

"I am extremely proud to share that The Guardians Board of Directors recently approved an $836 million dividend allocation to its individual life policy holders in 2016. The amount, which is 6.6% greater than last year's allocation, is the highest in our Company's history. The Dividend Interest Rat...
by Independent
Wed Nov 18, 2015 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life. Can someone sum up why its a sucker scam (in as few words as possible)
Replies: 60
Views: 8178

Re: Whole Life. Can someone sum up why its a sucker scam (in as few words as possible)

You can start with the fact that he included average mutual fund ERs and advisory fees- i.e. subtract 2% from the returns of the investments. Actually I think it was a bit less than 2% say 1.59% as I recall but point taken. Thanks, but not the rigorous analysis I was looking for but it may not be n...
by Independent
Mon Nov 09, 2015 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Waiting to 66 For SS Equals 8.3% COLA'd Annuity?
Replies: 50
Views: 5591

Re: Waiting to 66 For SS Equals 8.3% COLA'd Annuity?

Regarding spousal, times have changed. When I was a child, almost all mothers stayed home with their children and performed duties of homemakers. The spousal arrangement was included in social security to recognize the circumatances of the time. Today, more women than men attend college. Most women...
by Independent
Mon Nov 09, 2015 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Waiting to 66 For SS Equals 8.3% COLA'd Annuity?
Replies: 50
Views: 5591

Re: Waiting to 66 For SS Equals 8.3% COLA'd Annuity?

Since no one else has. I will give you super simple.math. As long as she is still working, and if.she wants mad money I would think she is, then for every dollar over 15k she makes ss takes back 0.5 AND if you are actively collecting it doesn't increase your future payout . So fine collect when you...
by Independent
Mon Nov 09, 2015 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Scott Burns' Hedonic Tilt
Replies: 9
Views: 2846

Re: Scott Burns' Hedonic Tilt

I'd think about whether I'd really be "happy" with that reduction. I'd ask , "If I think I can happily live without this when I'm 75, why can't I live without it today?" And, of course, I'd ask what expenses will go up as I become more prone to health problems. Dont' confuse can and want. You can l...
by Independent
Sun Nov 08, 2015 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: When can we retire?
Replies: 66
Views: 10254

Re: When can we retire?

I wonder if that includes expenditures like healthcare that are at least partially reimbursed by insurance? My perception is most retirees live very close to the edge and then large segment live comfortably. To a large extent it comes down to what the definition of luxurious is. For me, $80K would ...
by Independent
Sun Nov 08, 2015 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Waiting to 66 For SS Equals 8.3% COLA'd Annuity?
Replies: 50
Views: 5591

Re: Waiting to 66 For SS Equals 8.3% COLA'd Annuity?

Following up on john94549's post, it's supposed to be actuarially neutral, that is, the average person will be no better or worse off by taking early or late. Delaying, in effect, is a bet you'll live longer than average. I view delaying as insurance against living longer than average - you'll have...
by Independent
Sat Nov 07, 2015 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: When can we retire?
Replies: 66
Views: 10254

Re: When can we retire?

I am amazed the average couple over 60 has $54,000 after taxes to spend considering that is about the median household income in America. Good point. I'd look at "median income of all households" vs. "mean spending of home-owning couples". My data is from the Consumer Expenditure Survey. It isn't s...
by Independent
Sat Nov 07, 2015 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Scott Burns' Hedonic Tilt
Replies: 9
Views: 2846

Re: Scott Burns' Hedonic Tilt

I would also be concerned that this does not take account of bouts of high inflation that might occur. That, to me, is what makes Burns' idea nonsense. He's assuming that everyone spends less as they age on average, that this is such a regular thing that you can plan on it. Then he's assuming that ...
by Independent
Sat Nov 07, 2015 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Have people who want early retirement actually BETA-TESTED it to see if you like it?
Replies: 13
Views: 1799

Re: Have people who want early retirement actually BETA-TESTED it to see if you like it?

I'm not sure what "early" means. I retired at 59. My longest work breaks had been one week vacations. At first, I had a list of things I wanted to work on - actually had a "to do" list just like I did at work. I eventually discovered that my blood pressure went down. It wasn't so important to "show ...
by Independent
Sat Nov 07, 2015 10:34 am
Forum: Personal Finance (Not Investing)
Topic: When can we retire?
Replies: 66
Views: 10254

Re: When can we retire?

I'm having trouble with the $80k. The average couple in the 60+ age range spends $54,000 after taxes . That includes about $2,750 in travel. It also includes taxes, utilities, insurance, maintenance, and repairs on house that might sell for $180k, your house is more expensive and probably bigger. I'...
by Independent
Wed Nov 04, 2015 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Term life questions, help me understand what I am ensuring against
Replies: 5
Views: 857

Re: Term life questions, help me understand what I am ensuring against

A couple of questions assuming a nothing changes environment after getting some quotes from sites suggested here I'm looking around 500k each for 20yr term (expires at 54/57) $650 annual combined or 30yr term (expires at 64/67 perfect retirement age) but is about $1000/yr. 500k assuming my knowledg...
by Independent
Tue Nov 03, 2015 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Consolidated 2016 Medicare Part B Increase thread
Replies: 111
Views: 6540

Re: Consolidated 2016 Medicare Part B Increase thread

As regards surcharges, etc, this situation will continue year to year so long as increases in healthcare expenses outpace the percentage increases in the cost of living metric used for annual SS COLAs, which is to say FOREVER under the current system. That's not how I understand the math. Suppose I...
by Independent
Fri Oct 30, 2015 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Does being healthy mean you should save more for retirement?
Replies: 28
Views: 3425

Re: Does being healthy mean you should save more for retirement?

30x is virtually a perpetuity. If you're comfortable with a mix of stocks and bonds, you should be able to take out 3.3% forever. (or at least until WWIII, Weimar Republic style inflation, the asteroid strike, or the Yellowstone volcano explodes)
by Independent
Fri Oct 30, 2015 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Approximating Social Security
Replies: 21
Views: 2994

Re: Approximating Social Security

If you're asking for simple math, Suppose: You save 10% of your gross each year and got a level return of inflation + 3%. Your salary goes up with inflation. You do this for 45 years. At the end of the 45 years, you start withdrawals using a 4% "safe withdrawal rate". Then, the 10% per year accumula...
by Independent
Tue Oct 27, 2015 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Typical Retirement Day, 5 years later?
Replies: 20
Views: 4087

Re: Typical Retirement Day, 5 years later?

I retired at 59. I don't remember exactly what I was doing at the 5 year mark. I know the third year was devoted to my wife's cancer treatments (successful) and some unrelated surgery. During the fourth year one of my children had a personal tragedy and we spent more time with her. Then, another ado...
by Independent
Tue Oct 27, 2015 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Consolidated 2016 Medicare Part B Increase thread
Replies: 111
Views: 6540

Re: Do I understand the Medicare Part B Premium "Increase"?

Unless the budget deal unwinds, this has been "fixed" The tentative budget agreement forged by congressional leaders and the Obama administration will ward off a historic spike in Medicare premiums for the coming year, but it will nevertheless require nearly one in three older Americans to pay 17 pe...
by Independent
Sat Oct 24, 2015 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: At what point did you and your spouse COMBINE your finances (or did you?)
Replies: 53
Views: 5369

Re: At what point did you and your spouse COMBINE your finances (or did you?)

As soon as we were married and could open a joint checking account.
by Independent
Tue Oct 20, 2015 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: How does this long term care policy look?
Replies: 9
Views: 1413

Re: How does this long term care policy look?

You didn't mention ages, when they bought the policies, or whether the $3,300 is the original benefit or an inflated amount.