Search found 809 matches

by DickBenson
Tue Sep 24, 2013 2:39 pm
Forum: Investing - Theory, News & General
Topic: Deferred Immediate Annuities
Replies: 23
Views: 2797

Re: Deferred Immediate Annuities

For both DIAs and SPIAs, a lump-sum premium is paid today in return for a guaranteed income for life. The difference is that for the DIA, the guaranteed income does not begin until a later date. In a TIAA Traditional account one "buys" the guaranteed income for life with periodic payments rather th...
by DickBenson
Fri Sep 20, 2013 2:07 am
Forum: Investing - Help with Personal Investments
Topic: Need Help With Allocation in Move to TIAA CREF
Replies: 14
Views: 1289

Re: Need Help With Allocation in Move to TIAA CREF

The following is from the TIAA-CREF site. For Group Retirement Annuity (GRA) contracts and subject to the terms of your employer's plan, lump-sum withdrawals are available from the TIAA Traditional Annuity only within 120 days after termination of employment and are subject to a 2.5% surrender charg...
by DickBenson
Sat Sep 14, 2013 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate Account, bond-like or Madoff-like?
Replies: 79
Views: 12671

Re: TIAA Real Estate Account, bond-like or Madoff-like?

^ The bold-faced text does not mention a "sale request", so it doesn't appear that I will have any problems selling when I want to. Not positive about this, but I think they use the term "exchange request" in place of a "sale request", since the funds would have to be transferred into one of the ot...
by DickBenson
Fri Sep 13, 2013 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate Account, bond-like or Madoff-like?
Replies: 79
Views: 12671

Re: TIAA Real Estate Account, bond-like or Madoff-like?

My concern with TREA is the "cashability" feature of the fund. However, this 'timing" capability is what makes it attractive to most others. If I was in a real estate partnership with a bunch of other investors, I would not like them (especially if some were "high-rollers") to be able to abandon shi...
by DickBenson
Sat Sep 07, 2013 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: I Bond question please
Replies: 24
Views: 4053

Re: I Bond question please

Just trying to decide if we should purchase now or wait until Nov. If you wait until the middle of October the new inflation rate on the November I bonds will be known. If it is greater than the present inflation rate, then you could wait and purchase the bonds in November. If it is less than the p...
by DickBenson
Fri Aug 09, 2013 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Is it possible to get monthly account data from TIAA CREF?
Replies: 9
Views: 822

Re: Is it possible to get monthly account data from TIAA CRE

And besides, my neurotic financial analyst mindset insists on month-end figures across all accounts :-) You might look at some of the comments in the following thread to see well a "set and forget about it" strategy works with TIAA-CREF. http://www.bogleheads.org/forum/viewtopic.php?f=10&t=121073&n...
by DickBenson
Wed Aug 07, 2013 11:16 pm
Forum: Investing - Theory, News & General
Topic: The fate of the 50/50 TIAA-CREF portfolio?
Replies: 23
Views: 3194

Re: The fate of the 50/50 TIAA-CREF portfolio?

Intheheadlights wrote:My contributions were $4.8K to each.
I suspect that the university also contributed to the account. Otherwise that would be about a 9% growth rate.

Dick
by DickBenson
Wed Aug 07, 2013 2:33 am
Forum: Investing - Theory, News & General
Topic: The fate of the 50/50 TIAA-CREF portfolio?
Replies: 23
Views: 3194

Re: The fate of the 50/50 TIAA-CREF portfolio?

Recently, I found myself wondering how things would have turned out if I'd continued to work in academe and followed this 50/50 formula (never rebalancing) for the 35 years of so of my working career. If anybody has a handle on this, I'd be interested to hear. I suspect things would have turned out...
by DickBenson
Wed Jul 17, 2013 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Estate planning for elderly grandmother via RLT and VTSMX
Replies: 8
Views: 596

Re: Estate planning for elderly grandmother via RLT and VTSM

You would simply recommend having her create an investment account in her own name, setup auto-invest to purchase shares each month and simply include a section in her will leaving the shares to her beneficiaries? As I understand it, could she not just set up three separate investment accounts with...
by DickBenson
Wed Jul 17, 2013 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Should my parents contribute to taxable, Roth or Traditional
Replies: 21
Views: 1028

Re: Should my parents contribute to taxable, Roth or Traditi

My parents are approaching retirement in the next 5-10 years. Also, they could contribute to a Traditional IRA now, and either leave it alone or convert it to a Roth when they are retired and likely in a somewhat lower tax bracket (assuming the tax laws don't change). Any idea what makes the most s...
by DickBenson
Wed Jul 10, 2013 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about TIAA-CREF
Replies: 37
Views: 4723

Re: Questions about TIAA-CREF

So it seems like I do indeed have a GRSA and an RC both, doesn't it? Not sure whether it is a typo or not, but what I believe you are saying is that you have a GSRA (not a GRSA) and a RC both. This could be the case if your employer originally had a GRA/GSRA contract with TIAA, and latter a RC/RCP ...
by DickBenson
Wed Jul 10, 2013 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about TIAA-CREF
Replies: 37
Views: 4723

Re: Questions about TIAA-CREF

Not sure where you get the 1% for 10 years thing. I'm pretty sure that the guaranteed minimum is 1%, period. The following is a quote from a description of Retirement Choice contracts. For Retirement Choice Annuity the guaranteed rate is between 1% and 3%, as specified in the contract. The minimum ...
by DickBenson
Wed Jul 10, 2013 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about TIAA-CREF
Replies: 37
Views: 4723

Re: Questions about TIAA-CREF

So my employer made a mistake. EMPLOYEE contributions were to go to my GRSA account (to be invested in the Traditional), which as I understand it is portable and does not have restrictions for transfers, etc. There is no such account as a GRSA. There is a GRA to which both employee and employer mak...
by DickBenson
Fri Jul 05, 2013 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: High allocation to Ibonds and EE bonds?
Replies: 2
Views: 606

Re: High allocation to Ibonds and EE bonds?

I've been maxing I and EE bonds for several years now. I am 35 years old, - Inflation protection seems less valuable for an early accumulator. One issue that you need to consider is that the bonds you now have are likely to mature at a time when you are at an age of maximum income. Thus you could b...
by DickBenson
Wed Jul 03, 2013 11:51 am
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF Fund Choices
Replies: 32
Views: 5339

Re: TIAA-CREF Fund Choices

RA/GRA plans have a 9 year restriction in moving money OUT of Trad but are presently crediting new contributions at 3.4%. The GRA restriction is only 5 years ( edit: after termination of employment, otherwise 9 years ) and (like the RC but unlike the RA) you can withdraw all of your funds with a 2....
by DickBenson
Tue Jul 02, 2013 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF Fund Choices
Replies: 32
Views: 5339

Re: TIAA-CREF Fund Choices

I'm using this AA: 56% US Stock (VTSAX / VTI / FUSVX + FSEVX) 16% Intl Stock (VTIAX) 20% Bond (BND) 8% REIT (VNQ / VGSLX) In the spirit of simplicity, I would be comfortable in recommending the following use of your TIAA account. Fill out as much of your 20% bond allocation as you can with Traditio...
by DickBenson
Fri Jun 21, 2013 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about TIAA-CREF
Replies: 37
Views: 4723

Re: Questions about TIAA-CREF

Before putting money into Traditional in an RA or GRA, make sure you understand the restrictions on transfers. I suspect that you do not have the option of putting money into Traditional in the RA anymore. If the choice is between either the GRA or GSRA then I believe both are now giving the minimu...
by DickBenson
Thu Jun 20, 2013 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about TIAA-CREF
Replies: 37
Views: 4723

Re: Questions about TIAA-CREF

My wife (40 years old) has three accounts with TIAA-CREF from a previous job..... -- one is RA, one is GRA, .... Curious as to how she has both a RA and a GRA from the same institution. Did they freeze future contributions to the RA and add a GRA contract? The latter would have less restrictive wit...
by DickBenson
Wed Jun 12, 2013 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax loss harvest unnecessary for 10% and 15% bracket
Replies: 10
Views: 1067

Re: Tax loss harvest unnecessary for 10% and 15% bracket

If the gains can be harvested at zero tax liability, is there ever a downside to harvesting them? If you have a credit of realized losses from prior years, then any realized gains this year will have to offset those losses before the remaining gains can be taxed at 0% or any other percentage. This ...
by DickBenson
Wed Jun 05, 2013 12:57 pm
Forum: Personal Consumer Issues
Topic: Reasonable to sell a house that needs some work?
Replies: 33
Views: 3190

Re: Reasonable to sell a house that needs some work?

How does one find builders or fixer uppers that will buy houses that need work, refurbish them, and then resell them?

Dick
by DickBenson
Sat Jun 01, 2013 1:51 am
Forum: Investing - Help with Personal Investments
Topic: Time to Sell TIPS and Schwab Total Bond Fund?
Replies: 25
Views: 2629

Re: Time to Sell TIPS and Schwab Total Bond Fund?

But what else to put your money into? TIPS returns are stinky, but so is everything else. You could 'go long' on long maturity TIPS-- but you risk buying TIPS that will outlive you. And the real returns aren't that great (0.5 to 1.0%). Really the only thing you could do is put them into CDs and/or ...
by DickBenson
Mon May 27, 2013 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Any reason not to exchange my TIPS holding for I Bonds?
Replies: 10
Views: 1268

Re: Any reason not to exchange my TIPS holding for I Bonds?

For those holding individual TIPS in a ladder, you probably have some large capital gains (which will disappear as the bonds approach maturity). By selling those TIPS you can lock in those gains and use the proceeds to replace those TIPS with I-bonds with a higher real yield. (An I-bond will "fit" o...
by DickBenson
Mon May 06, 2013 2:36 am
Forum: Personal Finance (Not Investing)
Topic: TIAA Trad & today's interest rates
Replies: 11
Views: 2010

Re: TIAA Trad & today's interest rates

Owl, when I asked if you had compared TIAA's "variable" SPIA with SPIAs from other companies, I was trying to see if you had compared the amount of income from an annuity offered by TIAA Traditional (which I consider to be a "variable" SPIA) with that of a similar "fixed" SPIA offered by other compa...
by DickBenson
Sun May 05, 2013 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: TIAA Trad & today's interest rates
Replies: 11
Views: 2010

Re: TIAA Trad & today's interest rates

I ran retirement income estimates for each successive year in the future (until I'd be forced to take RMDs), and then added up the total income I'd receive until age 90 for each starting year. Since I opt for the Standard payout method, I assumed the starting payout for each year would remain the s...
by DickBenson
Sat Apr 27, 2013 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Buying a small amount of I Bonds today: Worth it?
Replies: 2
Views: 666

Re: Buying a small amount of I Bonds today: Worth it?

The interest earned on a $500 I Bond bought today would be less than $5 by the end of the year. So you would have to decide whether it would be worth the effort.

Dick
by DickBenson
Sat Apr 20, 2013 12:44 am
Forum: Investing - Help with Personal Investments
Topic: Tempted to Use Roth IRA for House Down-Payment
Replies: 16
Views: 6462

Re: Tempted to Use Roth IRA for House Down-Payment

If you decide to wait a few years to purchase a house, and are able and wish to continue to contribute to an IRA, then you might consider contributing to a traditional IRA rather than a Roth. Would be able to avoid tax and might be able to build up your other savings to pay for house down payment. I...
by DickBenson
Wed Apr 17, 2013 11:22 am
Forum: Investing - Theory, News & General
Topic: New I-Bond rate?
Replies: 32
Views: 5437

Re: New I-Bond rate?

Buy before April 30th and you'll get 1.47% for a year (1.76% for April-Sept and 1.18% Oct-March). With tax deferral and state income tax exemption, they still beat CD's. To compare with a 1 year CD, you would have to take into consideration the 3 month penalty for early redemption of the I bond. Di...
by DickBenson
Sun Apr 14, 2013 10:28 pm
Forum: Investing - Theory, News & General
Topic: Is TIAA Traditional a "free lunch" in the bond market?
Replies: 13
Views: 2011

Re: Is TIAA Traditional a "free lunch" in the bond market?

This link will lead you to a description of the investments of the General Account (which supports TIAA Traditional accounts). https://www.tiaa-cref.org/public/pdf/performance/retirement/profiles/TIAA_Gen_Act_Fin_Strength.pdf You are correct when you say they try to accumulate surpluses during the g...
by DickBenson
Sun Apr 07, 2013 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Is TIAA-CREF pulling a fast one??
Replies: 21
Views: 3075

Re: Is TIAA-CREF pulling a fast one??

Here is a link to a conversation at the TIAA/CREF forum at morningstar that has a 20 year history of an annuity payout. Note that the additional amounts made up more than 50% of the payments for this participant. http://socialize.morningstar.com/NewSocialize/forums/p/284722/3066949.aspx#3066949 Dick
by DickBenson
Sat Apr 06, 2013 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Is TIAA-CREF pulling a fast one??
Replies: 21
Views: 3075

Re: Is TIAA-CREF pulling a fast one??

Does TIAA-CREF have a right in contracts they issued in the 1970s to reduce a participant's TIAA Traditional retirement income to a minimal contractual amount at some time in the future, if they decide to? My contract dates back to the 1970s. My contract doesn’t provide for potential reduction of m...
by DickBenson
Wed Mar 27, 2013 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH vs. Traditional 401K
Replies: 23
Views: 2165

Re: ROTH vs. Traditional 401K

Dick, when you add outside money to pay the taxes you are doing just that - adding money. The OP is about investing in a ROTH or a tIRA/401k. As I understand it, using the numbers in my example, if the OP has $5,000 to invest, he can either invest $1,000 in a taxable account and the remaining $4,00...
by DickBenson
Wed Mar 27, 2013 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH vs. Traditional 401K
Replies: 23
Views: 2165

Re: ROTH vs. Traditional 401K

Dan, you are correct. For the same amount of pre-tax money invested and no change in tax rate the ROTH and the tIRA/401k have exactly the same after tax return. Doc, that may be true, but you lose overall return by not using funds in your taxable account to convert IRA to Roth (tIRA/401k to Roth). ...
by DickBenson
Wed Mar 27, 2013 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH vs. Traditional 401K
Replies: 23
Views: 2165

Re: ROTH vs. Traditional 401K

If your tax rate is exactly the same in retirement as it is while you are working, there should be no difference whatsoever between the Roth 401k and Traditional 401k. Not quite. Under the assumption that the tax rate will stay constant, and the same investments in both, the Roth would have a highe...
by DickBenson
Tue Mar 26, 2013 7:51 pm
Forum: Investing - Theory, News & General
Topic: Is it possible to get more I-bonds this way?
Replies: 6
Views: 721

Re: Is it possible to get more I-bonds this way?

Is it possible to exceed the limits on individual I-bond purchase limits by having others purchase an I-bond in their name and gift it to you? With paper bonds you could have had your mother purchase the bond using her SS number and have you listed as joint owner. If you had possession of the bond,...
by DickBenson
Sat Mar 23, 2013 1:35 am
Forum: Investing - Theory, News & General
Topic: Nation’s Largest Pension Considers More Indexing
Replies: 15
Views: 2192

Re: Nation’s Largest Pension Considers More Indexing

Yeah, it only took 10 years for Friedman and Samuelson to wear the CREF people down. In 1981, CREF began indexing the majority of its stocks (80% of the US stocks). Don't think they ever went into a real indexing mode. At present the original CREF Stock Fund ($110 billion) uses the Russell 3000 and...
by DickBenson
Thu Mar 21, 2013 1:17 pm
Forum: Investing - Theory, News & General
Topic: Nation’s Largest Pension Considers More Indexing
Replies: 15
Views: 2192

Re: Nation’s Largest Pension Considers More Indexing

In 1971 Milton Friedman suggested to TIAA-CREF that CREF (now also ~$200 billion) should eliminate all investment analysis and "adopt a mechanical formula whereby CREF simply bought into a Standard & Poor's 500 index." Unfortunately, although intrigued, this was rejected since they already had a div...
by DickBenson
Wed Mar 20, 2013 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion strategy
Replies: 14
Views: 1863

Re: Roth Conversion strategy

If you made a total conversion to Roth by the time you reach RMD age (doing some at 25%), would your income at that time (pension, SS, self employment, etc.) keep you within the 15% bracket?. If so, you might consider delaying some of the conversions over the next 6 years at 25%, and finish up the c...
by DickBenson
Thu Mar 14, 2013 3:50 am
Forum: Investing - Help with Personal Investments
Topic: 2 Annuity Questions
Replies: 18
Views: 2808

Re: Roth Response

However, my siblings are VERY resistant to the idea. They keep asking why we would make Mom pay the tax now when we can pay it later if there is anything left when she passes. A simplistic answer is that she can pay the tax at a lower rate (without decreasing her net worth) than they could on any i...
by DickBenson
Thu Mar 07, 2013 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: 0% 2012 LTCG for 15% Fed Bracket
Replies: 5
Views: 594

Re: 0% 2012 LTCG for 15% Fed Bracket

Your LTCG would have been taxed at 0%, instead they will consume your precious cap loss carryover. Bad move realizing cap gains when holding a loss carryover. Yes, this has been the reason why, in spite of conventional wisdom, I have avoided realizing capital losses. If I lose some of my unrealized...
by DickBenson
Mon Mar 04, 2013 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest RMDs I don't need
Replies: 21
Views: 3864

Re: How to invest RMDs I don't need

The dilemma is where to invest the RMDs that we do not need. If we reinvest the RMDs within the Vanguard family of funds,........ You would be "investing the funds in the Vanguard family of funds" if you simply used those unneeded RMDs to convert part of your IRA to Roth, as Christine Benz recommen...
by DickBenson
Thu Feb 28, 2013 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 406
Views: 154971

Re: Retiree Roth Conversion Decision Model

For those who might have some difficulties using a spreadsheet to decide whether or when to convert to Roth, let me repost here an alternative view of a TIRA which might help one make such a decision. A Traditional IRA (TIRA) can be thought of as a partnership with the government in a profit making ...
by DickBenson
Sun Feb 17, 2013 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: 2 Annuity Questions
Replies: 18
Views: 2808

Re: 2 Annuity Questions

So, my instincts are to avoid advancing the time to pay the taxes. This is a natural instinct, but it can have a negative influence. Perhaps the following interpretation may be of some help. A Traditional IRA (TIRA) can be thought of as a partnership with the government in a profit making business ...
by DickBenson
Fri Feb 15, 2013 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: 2 Annuity Questions
Replies: 18
Views: 2808

Re: 2 Annuity Questions

She doesn't need the money in these IRAs now and I don't think it makes sense to take the tax hit. She is the beneficiary of all of my dad's IRA's and we are updating the beneficiary information on her IRA's. Don't wish to add to your concerns, but there are some reasons why, even at this late date...
by DickBenson
Mon Feb 11, 2013 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: Who pays tax on Savings Bonds with joint owners
Replies: 8
Views: 2461

Re: Who pays tax on Savings Bonds with joint owners

If you used your funds to buy the bond, you must pay the tax on the interest. What kind of documentation would there be, or required to be, to indicate whose funds were used to purchase the bond? If I used my funds to make a joint purchase of a bond using a relative's SSN, and claimed that I should...
by DickBenson
Mon Feb 04, 2013 2:21 am
Forum: Investing - Help with Personal Investments
Topic: TIPS - WSJ: "Take TIPS off Your List"
Replies: 48
Views: 7331

Re: TIPS - WSJ: "Take TIPS off Your List"

Karamatsu wrote:Personally I've kept my TIPS allocation as is, but I'll have to think twice about that if real rates are still negative when they start to mature.
Not sure what you mean by this. The real rate of a TIP bond will approach its coupon rate (a positive number) as the bond starts to mature.

Dick
by DickBenson
Sat Jan 19, 2013 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: ROTH conversions to avoid RMD
Replies: 12
Views: 2864

Re: ROTH conversions to avoid RMD

My reasons for converting are related to this article in the Bogleheads Wiki. Based on the table for single taxpayers, I may end up in the 46.25% marginal tax rate, because of my pensions and the RMD. The differences in the tables for singles and married couples illustrates the need to plan for the...
by DickBenson
Fri Jan 18, 2013 2:44 am
Forum: Personal Finance (Not Investing)
Topic: Holding off 2013 I-Bond Purchase
Replies: 31
Views: 4860

Re: Holding off 2013 I-Bond Purchase

I just scheduled my I-bond purchase for January 30. Six months at 1.76% is close to a year in a savings account, so it's a draw if the next inflation component is zero and a win otherwise. And you have a guaranteed minimum 1 year rate of 0.88%. If you redeem the bond after one year, you would lose ...
by DickBenson
Wed Jan 16, 2013 6:48 pm
Forum: Investing - Theory, News & General
Topic: Washington Post Article About People Raiding 401k Accounts
Replies: 102
Views: 22576

Re: Washington Post Article About People Raiding 401k Accoun

You DO NOT have a Social Security account. Yes, you pay the taxes now. Yes, you have an expectation that you will receive benefits later. But no one owns a Social Security account. I had an Social Security account which listed the amount of dollars that it contained (my benefits were based upon thi...
by DickBenson
Wed Jan 16, 2013 5:21 pm
Forum: Investing - Theory, News & General
Topic: Washington Post Article About People Raiding 401k Accounts
Replies: 102
Views: 22576

Re: Washington Post Article About People Raiding 401k Accoun

You cannot raid your Social Security account, and you could not raid the old TIAA retirement accounts. From a societal viewpoint, you should not be able to raid any retirement account that has been given government benefits such as tax deferral. The purpose of these retirement accounts is not to bui...
by DickBenson
Wed Jan 16, 2013 12:41 am
Forum: Investing - Theory, News & General
Topic: Washington Post Article About People Raiding 401k Accounts
Replies: 102
Views: 22576

Re: Washington Post Article About People Raiding 401k Accoun

Until about 25 years ago you were not able to take funds out of your TIAA retirement account, and at retirement your only option was to annuitize (similar to the structure of Social Security). It worked! Although paternalistic, perhaps this is the model that others should consider....even the presen...