Search found 789 matches

by JS-Elcano
Sun Mar 26, 2023 11:05 pm
Forum: Investing - Theory, News & General
Topic: At what point would you stop investing in stocks altogether?
Replies: 108
Views: 10133

Re: At what point would you stop investing in stocks altogether?

Actually, I am thinking of stopping to invest in stocks all the time because: If I keep saving annually what I am saving now (and there is no reason to assume I would save less) getting 4% nominal return would land me fair and square on *my number* for FIRE at 59/60. I am 8-9 years away from 59/60 so I am thinking more conservatively. I am also wondering if I even need to take equity risk anymore. I am 55/45 AA (Total Stock Market+SP500/TIAA trad) with TIAA Trad earning 5.6% across all vintages. I can SWAN with this AA, but I find myself asking whether I need to take the equity risk at all? If you were me, would you be 55/45 at this point if I have room in TIAA Trad to be at 25/75 AA. There's no guarantee that TIAA Trad will stay this high ...
by JS-Elcano
Sun Mar 26, 2023 9:48 pm
Forum: Personal Investments
Topic: Help me help my mom who is in very bad financial shape.
Replies: 85
Views: 7400

Re: Help me help my mom who is in very bad financial shape.

What are her actual expenses? Surely there are more than only the $1200 for rent? It seems like she makes 60k after tax and only saves $600*12= $7200, rent is $1200*12=$14400, so where is the other $38,000 going? $2600 for social security would provide for $1200 rent plus $1400 for spending. Tight, but it could be done I think if Medicare is covering serious healthcare spending. There are people with zero savings and also debt that are in worse shape Thanks for this perspective. I suggested that she start saving 20,000 per year now to help get used to what her income would be like in SS. She thought that number was impossible. I am not exactly sure where the unaccounted for 38,000 is going. I will press her more on this when the time is ri...
by JS-Elcano
Fri Mar 17, 2023 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: BOA Savings Account
Replies: 62
Views: 4898

Re: BOA Savings Account

enviroian wrote: Fri Mar 17, 2023 4:26 pm Hello, brand new here so please go easy :D

I have over $300K sitting in a BOA savings account earning just piddly interest. What would you recommend I do to have my money work better for me? Does BOA have other accounts I should look at? I'd also like the account to be somewhat liquid as I deposit and withdraw frequently.

Thanks
My savings account was earning 0.05%. So, a month ago or so I transferred my savings account balance (nowhere near your 300k) to my Vanguard Brokerage where it is sitting in the settlement fund VMFXX (money market) earning 4.57%.
by JS-Elcano
Fri Mar 17, 2023 1:51 am
Forum: Personal Investments
Topic: What are retirees who "over saved" doing with funds?
Replies: 72
Views: 6054

Re: What are retirees who "over saved" doing with funds?

placeholder wrote: Fri Mar 17, 2023 1:45 am Perhaps I expressed myself poorly in an attempt to be succinct but as there is in my mind no way to know a total number needed I am not over saved so I stay invested so that I have reserves for potential future events.
Exactly. You will only know whether you oversaved after you are dead.
by JS-Elcano
Fri Mar 17, 2023 1:11 am
Forum: Personal Investments
Topic: What are retirees who "over saved" doing with funds?
Replies: 72
Views: 6054

Re: What are retirees who "over saved" doing with funds?

TheTimeLord wrote: Thu Mar 16, 2023 12:34 pm What are retirees who "over saved" doing with funds in excess of their needs besides donating to kids and charities?
When would you even know that you oversaved?

You may need hundreds and hundreds of thousands in your 90s for assisted living or nursing home care. So, it's not like you can blow it all in your 70s and 80s unless you've oversaved by several millions (how many people does this even affect :confused )
by JS-Elcano
Thu Mar 09, 2023 10:59 pm
Forum: Investing - Theory, News & General
Topic: MUST LISTEN "Bogleheads on Investing" podcast with financial historian Edward Chancellor
Replies: 148
Views: 15959

Re: MUST LISTEN "Bogleheads on Investing" podcast with financial historian Edward Chancellor

Can you explain what you mean by "stocks with less valuation inflation than US Growth"? I am fairly green when it comes to equities. One method of stock valuation is the discounted cash flow model (DCF), and growth stocks are considered to (or hoped to) have much higher future earnings than in the present, and thus are more sensitive to the current discount rate: Growth vs. Value: Interest Rates as a Driver of Style-Relative Performance https://www.morganstanley.com/im/en-us/individual-investor/insights/articles/growth-vs-value-interest-rates-as-a-driver-of-style-relative-performance.html The high PE ratio, large market cap tech growth stocks that have dominated the US total market index for many years (FAANG, Tesla, etc) have be...
by JS-Elcano
Thu Mar 09, 2023 8:42 pm
Forum: Investing - Theory, News & General
Topic: MUST LISTEN "Bogleheads on Investing" podcast with financial historian Edward Chancellor
Replies: 148
Views: 15959

Re: MUST LISTEN "Bogleheads on Investing" podcast with financial historian Edward Chancellor

The gentleman said much, about headwinds for bonds and the appeal of TIPS. But he didn't answer the question about passive investing overall, namely the sensibility (or not) of setting SOME allocation, probably favoring stocks, and just cleaving to it, more or less with no variations or flurry of activity, perpetually. I thought he did when he discussed implications for AA. He basically said when money is cheap, speculation outperforms. So when we're in a secular loosening cycle, go heavy on stocks. And, vice versa, when we're in a tightening cycle, you might want less stocks. And that these macro monetary cycles can last decades. I think he was also implying that the central banks of the world are now hearing that the 'market rate' for ce...
by JS-Elcano
Thu Mar 09, 2023 5:46 pm
Forum: Personal Investments
Topic: Parents Real Estate Deal - Say something?
Replies: 130
Views: 10321

Re: Parents Real Estate Deal - Say something?

Tridentine wrote: Thu Mar 09, 2023 5:30 pm I have had my question adequately answered. Thanks ya'll.
Sorry, didn't see your post until I posted after this. Feel free to ignore my post above.
by JS-Elcano
Thu Mar 09, 2023 5:42 pm
Forum: Personal Investments
Topic: Parents Real Estate Deal - Say something?
Replies: 130
Views: 10321

Re: Parents Real Estate Deal - Say something?

Tina looks like 50's? maybe? My brother and I live far away. We hate it, kind of feels like they moved away from us and toward tina. Her name is on the mortgage too. there are 4 grantees so if the other two (besides tina) each put in approx $50,000... That's probably the totality of the $160,000 downpayment? I have no idea where the rental income actually goes. Its not an account my parents control. Dad says, "the group is building up a small cash reserve for repairs and things like that before we begin drawing out of it". But you know... its been a year... so in addition to the outlay of 50k for the downpayment, your father is now also paying down a 180k mortgage every month for a condo he may never see a penny from or be able t...
by JS-Elcano
Wed Mar 08, 2023 12:12 pm
Forum: Personal Investments
Topic: Parents Real Estate Deal - Say something?
Replies: 130
Views: 10321

Re: Parents Real Estate Deal - Say something?

Tridentine wrote: Wed Mar 08, 2023 7:16 am ...
Everyone worships the ground Tina walks on and I cannot make my parents see it isn't smart.
...
If they haven't benefited from anything Tina has done, why are they worshipping her? Have you asked them that?
by JS-Elcano
Tue Mar 07, 2023 10:38 pm
Forum: Personal Consumer Issues
Topic: Noisy Home Locations
Replies: 49
Views: 4595

Re: Noisy Home Locations

We are looking for a retirement home and I always get concerned when I see a home not far from a highway due to noise issues. I found a web site that gives you a SoundScore if you type in a location. Has anyone used it? Found it to be accurate? https://howloud.com/ I typed in a few addresses of homes I've been looking at and then compared it to a location (same state) where I had lived previously and it said my previous location was louder than the 2 homes I was looking at. I found that surprising since my previous home was near a busy secondary street, maybe a hundred yards or so (we were in a court and there was 2 houses next to mine, then a grassy median/wall and the road. The homes I looked at were near a highway which I would have tho...
by JS-Elcano
Sat Mar 04, 2023 8:58 am
Forum: Personal Consumer Issues
Topic: Cars: Max you'd pay? How long do you keep cars? Plans to go EV?
Replies: 99
Views: 7402

Re: Cars: Max you'd pay? How long do you keep cars? Plans to go EV?

1. What is the most you'd be comfortable paying for a car? (not necessarily what you can afford, but what you'd pay) Paid no more than 14k on any of the three cars in my life so far, so I guess 14k is what I am comfortable with. Could *afford* 5x as much. 2. Do you buy new, used, or CPO? Why? Only used so far. 3. How long do you keep your cars? Why? (i.e. until the wheels fall off, until your lease is up, or at a certain mileage) Until repairs over two years exceed car value. 4. Have/are you going to consider an electric car? If you don't have one yet, what will be the deciding factor for you to get one? My next car will be an EV. 5. Do you lease cars? If so, why? Is there any benefit to leasing newer cars given all of the new electronic te...
by JS-Elcano
Thu Mar 02, 2023 12:29 pm
Forum: Personal Investments
Topic: When does TIAA Traditional update buckets' crediting rate?
Replies: 20
Views: 1314

Re: When does TIAA Traditional update buckets' crediting rate?

Today I can see the brand new crediting rates for previous time periods' "interest buckets." However, when I look at my own contracts online, the old interest rates are still displayed. Is there a standard lag between announcing the new crediting rates and pushing them to customers' account displays? Am I being too impatient? Do I have too little faith in TIAA? Your own contracts should now show the updated interest rates. At least mine do. Across all my vintages/buckets, the interest rate went up from 5.312% to 5.597%. Not bad at all. If I knew rates would stay there for the next 10 years I would shovel everything I can into TIAA Trad and actually be able to hit my FIRE number without having to worry about what the stock market ...
by JS-Elcano
Wed Mar 01, 2023 7:53 pm
Forum: Personal Investments
Topic: When does TIAA Traditional update buckets' crediting rate?
Replies: 20
Views: 1314

Re: When does TIAA Traditional update buckets' crediting rate?

Today I can see the brand new crediting rates for previous time periods' "interest buckets." However, when I look at my own contracts online, the old interest rates are still displayed. Is there a standard lag between announcing the new crediting rates and pushing them to customers' account displays? Am I being too impatient? Do I have too little faith in TIAA? Your own contracts should now show the updated interest rates. At least mine do. Across all my vintages/buckets, the interest rate went up from 5.312% to 5.597%. Not bad at all. If I knew rates would stay there for the next 10 years I would shovel everything I can into TIAA Trad and actually be able to hit my FIRE number without having to worry about what the stock market ...
by JS-Elcano
Mon Feb 27, 2023 5:48 pm
Forum: Personal Consumer Issues
Topic: Attempting self imposed $500 annual discretionary spending challenge
Replies: 183
Views: 9650

Re: Attempting self imposed $500 annual discretionary spending challenge

It would be interesting to know what your discretionary spending amount usually is when you don't restrict yourself to things like $0 discretionary on food, or no more than $500 discretionary total. You are going from $xxx to $500.
by JS-Elcano
Mon Feb 27, 2023 12:07 am
Forum: Personal Consumer Issues
Topic: Question on Paramount plus
Replies: 20
Views: 2193

Re: Question on Paramount plus

bowtie wrote: Sat Feb 25, 2023 7:16 pm I'm probably going to cancel the subscription because I wanted to watch whatever I wanted from any Star Trek old or new.
Instead of this, one can only view each series in order, starting from #1, for example " Picard" at season #1, rather than #2 being available as well.
I asked customer service via message but no response yet. If u know how this works let me know.
So far it seems more worth cancelling than keeping.
That is strange. I can watch any past episode of Picard I want in whatever order I want to (Though I must sadly say that I have no desire to do so. I am more hopeful about season 3. So far.).
by JS-Elcano
Fri Feb 24, 2023 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: CPA mistake
Replies: 72
Views: 5907

Re: CPA mistake

I know more about our return than the accountant and how things should flow on it, so this year we will use turbotax since I am tired of proofing the return and correcting his errors. This about sums it up. If it is not a knowledge or skill based concern- an individual doesn’t know how to complete a task- then DIY will almost always have better quality control. Taxes, yard work, etc. I am surprised at all the "oh, it's just a mistake, no biggie, you are supposed to check anyway" responses here. If I need to know every number that goes anywhere in the return and know all the IRS rules so I can catch any errors the CPA makesI wouldn't need a CPA. A 10-fold higher number because of an additional digit in the finalized return is just...
by JS-Elcano
Fri Feb 24, 2023 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: CPA mistake
Replies: 72
Views: 5907

Re: CPA mistake

Duplicate post deleted
by JS-Elcano
Fri Feb 24, 2023 11:58 am
Forum: Personal Finance (Not Investing)
Topic: CPA mistake
Replies: 72
Views: 5907

Re: CPA mistake

I know more about our return than the accountant and how things should flow on it, so this year we will use turbotax since I am tired of proofing the return and correcting his errors. This about sums it up. If it is not a knowledge or skill based concern- an individual doesn’t know how to complete a task- then DIY will almost always have better quality control. Taxes, yard work, etc. I am surprised at all the "oh, it's just a mistake, no biggie, you are supposed to check anyway" responses here. If I need to know every number that goes anywhere in the return and know all the IRS rules so I can catch any errors the CPA makesI wouldn't need a CPA. A 10-fold higher number because of an additional digit in the finalized return is just...
by JS-Elcano
Tue Feb 21, 2023 7:31 pm
Forum: Personal Investments
Topic: What % of your gross income do you set aside for retirement?
Replies: 224
Views: 18116

Re: What % of your gross income do you set aside for retirement?

Jack FFR1846 wrote: Mon Feb 13, 2023 8:51 am My 401k takes 40% as I'm done the end of May.
I've already put $15k into 2023 Roth and after our tax return is complete for the 2022 tax year, we'll put as much as we can up to $14k.

So percentage wise in total? No idea. A lot.
May I ask what the rationale is behind front loading your 401k like this? Is it simply "time in the market" or something else?
by JS-Elcano
Sun Feb 19, 2023 10:06 am
Forum: Personal Consumer Issues
Topic: Space/heat questions for a heat pump water heater
Replies: 35
Views: 2092

Re: Space/heat questions for a heat pump water heater

I have a heat pump water heater. I had to learn how to use the secret key presses to disable heat pump mode and to run purely electric. It’s in a much larger space than you have, and it still didn’t work. The water was lukewarm when the heat pump was enabled. Don’t do it. Do you have any idea why it's not functioning properly when using the heat pump? Most of the reviews I've seen indicate that these work well. It’s in too small a space without any heat source. The plumber ignored the manufacturer recommendations for space required. It probably would work fine in a larger room. That sounds like the cause. I'm concerned that the very limited space would be a problem for me as well, even if the space was heated reasonably well. I’m a big fan...
by JS-Elcano
Thu Feb 16, 2023 12:10 pm
Forum: Personal Consumer Issues
Topic: Planting peach tree close to house
Replies: 9
Views: 1250

Re: Planting peach tree close to house

I have a sunny spot 10ft from the foundation and was thinking of adding a dwarf red haven peach tree there. Does the peach tree have invasive roots? Not sure how much fruits we will get, but I also like the look of the peach tree. Would pruning and keeping it short makes its root system less spread? I have a peach tree about 6ft from my house and have not had any issues for the 11 years that I have had it. You must prune it annually if you want to harvest fruit since it only bears fruit on newer branches. I radically prune it every 2 years also because I want to be able to pick the fruit without a ladder (though I do climb into the tree a bit), so I keep it to a max of 8-10ft and prune it down to 6 ft. I am not expert but my guess is that ...
by JS-Elcano
Thu Feb 16, 2023 10:43 am
Forum: Personal Consumer Issues
Topic: Will EV's ever self-charge?
Replies: 53
Views: 2483

Re: Will EV's ever self-charge?

Nowizard wrote: Thu Feb 16, 2023 9:44 am Another thread discusses what to do if an EV discharges completely while driving. Not wanting to hijack that thread, the above question is being posted. The current answer is probably that there is no ability to create the equivalent of an alternator at this time, but is there research in this area? Obviously, it would be a huge consumer benefit with huge financial benefits as well.

Tim
There is a Sion solar car from Sono Motors. Its exterior is covered in monocrystalline silicone cells for solar integration. It can also be plugged in. I wish it was available in the US, but so far can only be ordered in Europe for delivery start in 2024. Cost is ~$30,000.
by JS-Elcano
Tue Feb 14, 2023 3:11 pm
Forum: Personal Investments
Topic: Time to pile back into Total Bond
Replies: 121
Views: 13641

Re: Time to pile back into Total Bond

AnnetteLouisan wrote: Sun Feb 12, 2023 5:14 pm
galawdawg wrote: Sun Feb 12, 2023 7:21 am Meh. I don't market time so I don't pile out or pile back into. Two-fund portfolio at 75/25 for me and I stay the course, through thick and thin.
Was going to say!that smacks of market timing to me! 😊 🫣Glad to hear BND is up though. I never sold mine, but it did pinch a bit.
It's only up 0.83% YTD though, but at least it's not sliding downwards anymore.

I am glad I am all in TIAA Trad with all of my fixed funds. Even emptied out a fixed fund paying 3% (went down from 3.5% strangely enough) in my 457 and put it in TIAA Trad. So now only VTI/VOO and TIAA Trad. I like the simplicity :happy
by JS-Elcano
Fri Feb 03, 2023 8:48 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 4746
Views: 768476

Re: What are you up YTD? [Year To Date]

Investments are up 7.7%, 6.0% without contributions.

Portfolio is 65% equities (mostly VTI/VOO) and 35% Fixed (all TIAA Trad, which is earning 5.15% across all vintages).
by JS-Elcano
Fri Feb 03, 2023 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: What Age & How Much Money? (Your Plan)
Replies: 171
Views: 18713

Re: What Age & How Much Money? (Your Plan)

How old are you today? 33 Portfolio Value Today? About $165,000 What is your portfolio target size for retirement in PV dollars? $1,000,000 is my base goal, $1,300,000+ is my "just one more year" goal What age are you targeting full retirement? Between 39 and 45. When I was at college, I thought that life after age 40 was pointless. :sharebeer My best friend and I have discussed this multiple times; in early adulthood we looked at 40 as pretty much the end of life. He told his wife when they met that he didn't plan to live past 40 and I told mine on our wedding day that I'll give her the best 8yrs of my life (I was 32). We both are having the times of our life at 41. Not living past 40 seems strange to me. Did you not know any pe...
by JS-Elcano
Fri Feb 03, 2023 12:49 pm
Forum: Investing - Theory, News & General
Topic: When did you start getting excited and more confident about your investments?
Replies: 68
Views: 5421

Re: When did you start getting excited and more confident about your investments?

Hi All, So I am a late starter, unfortunately, with saving and investing for retirement, having began at the age of 48. I am now 51 and have just surpassed the 300k point with my Vanguard "couch potato" index funds accounts (VTSAX, VBTLX, & VTIAX). I DCA about USD $4k a month into these accounts. I already have 6 months expenses put away as an emergency fund in a high interest savings account and have a rental home that is about 2/3 paid off (worth about $260,000 at this time). Hoping to retire with my wife and kid at 65 in a low coast of living country with a million or million and 1/2 and a paid for condo/house there. I will only qualify for a bare minimum of Social Security (I have exactly 40 quarter hours) because I have ...
by JS-Elcano
Thu Feb 02, 2023 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Primary Residence as a Retirement Asset
Replies: 47
Views: 3766

Re: Primary Residence as a Retirement Asset

A recent thread posited that one should not include their home as a retirement asset. But wouldn't it be prudent to factor in the size of your current home versus a potential down-sized home later in retirement? For example if you lived in a $1.1M house but planned to down-size to $500k home at age 75, why wouldn't you count the $600k difference as a retirement asset? I know it would not have as long to compound in the market, but it's still something. I also know there will be costs associated with selling the larger house that would pare down the $600k to $510k or so. We plan to use our current home's value ($500k) for LTC if needed. But we are planning to move next year to a $1.1M house, and then move again 20+ years later back to a sma...
by JS-Elcano
Wed Feb 01, 2023 6:59 pm
Forum: Investing - Theory, News & General
Topic: TIAA Traditional
Replies: 93
Views: 6071

Re: TIAA Traditional

I think I read somewhere that RC only started in 2005. That 1941 vintage seems strange, maybe a computing glitch because RC was new in 2005? Speculating, but maybe some very old RA contracts (including inherited contracts) were rolled into RC plans. Just a thought. That would be complicated if the employee left the in place plan prior to change. A “ friend” left a RA position in 1995 - t&c’s are “frozen” from date of separation. Actually quite common in many public retirement plans; but not guaranteed. Another “friend” had his public retirement plan (pension) retroactively recast 20 years in t&c’s - state court upheld it. With respect to what you are saying about frozen contracts, I have been wondering about this: When I retire, do...
by JS-Elcano
Wed Feb 01, 2023 6:55 pm
Forum: Investing - Theory, News & General
Topic: TIAA Traditional
Replies: 93
Views: 6071

Re: TIAA Traditional

I think I read somewhere that RC only started in 2005. That 1941 vintage seems strange, maybe a computing glitch because RC was new in 2005? Speculating, but maybe some very old RA contracts (including inherited contracts) were rolled into RC plans. Just a thought. That would be complicated if the employee left the in place plan prior to change. A “ friend” left a RA position in 1995 - t&c’s are “frozen” from date of separation. Actually quite common in many public retirement plans; but not guaranteed. Another “friend” had his public retirement plan (pension) retroactively recast 20 years in t&c’s - state court upheld it. With respect to what you are saying about frozen contracts, I have been wondering about this: When I retire, do...
by JS-Elcano
Wed Feb 01, 2023 5:30 pm
Forum: Investing - Theory, News & General
Topic: TIAA Traditional
Replies: 93
Views: 6071

Re: TIAA Traditional

I think I read somewhere that RC only started in 2005. That 1941 vintage seems strange, maybe a computing glitch because RC was new in 2005? Speculating, but maybe some very old RA contracts (including inherited contracts) were rolled into RC plans. Just a thought. That would be complicated if the employee left the in place plan prior to change. A “ friend” left a RA position in 1995 - t&c’s are “frozen” from date of separation. Actually quite common in many public retirement plans; but not guaranteed. Another “friend” had his public retirement plan (pension) retroactively recast 20 years in t&c’s - state court upheld it. With respect to what you are saying about frozen contracts, I have been wondering about this: When I retire, do...
by JS-Elcano
Wed Feb 01, 2023 1:14 pm
Forum: Investing - Theory, News & General
Topic: TIAA Traditional
Replies: 93
Views: 6071

Re: TIAA Traditional

Does anyone on here REALLY know how they are working it? Not the "they're crediting 6xx%" but how in the heck are they able to pay that out? Is this a possible ponzi scheme? It's backed by the general account of TIAA which is roughly 80% fixed income. We all know what those results were for 2022 yet they've come out and increased crediting rates. I have a couple theories but I'm wondering if anyone on here really knows. Thanks, Below are the crediting rates for older vintages of RC. Note that for a two year period (2020 and 2021) they paid 3.95%. They are still paying 3.95% on that money. So the current crediting rate only tells part of the story. It's likely that the VAST majority of money in Traditional is paying far less than ...
by JS-Elcano
Wed Feb 01, 2023 9:37 am
Forum: Personal Finance (Not Investing)
Topic: What Age & How Much Money? (Your Plan)
Replies: 171
Views: 18713

Re: What Age & How Much Money? (Your Plan)

early 50s
target: $2.5 million (no pension, paid off house)
target age: 60 [or keep working part time (4 months/year) to 65]
by JS-Elcano
Tue Jan 31, 2023 8:57 pm
Forum: Personal Finance (Not Investing)
Topic: PPO HSA or HMO no HSA - Help me decide please
Replies: 10
Views: 668

Re: PPO HSA or HMO no HSA - Help me decide please

In the above scenario I have a hard time figuring out where the PPO plan works out financially better than the HMO plan. Of course the advantage of the PPO plan is you can go anywhere in network vs having to go through your PCP on an HMO plan. If you’re otherwise healthy, I would go with the HMO plan. This isn't the case anymore, at least not with all HMOs. I can go to any specialist in network without ever having to contact my PCP though I bring it up during my annual physical if I have seen other physicians. I do sometimes get referrals to specialists during my annual physical, but can choose whether I go the physician my PCP recommends or someone else as long as they are in network. I am in a large metropolitan area and the HMO network ...
by JS-Elcano
Tue Jan 31, 2023 4:27 pm
Forum: Personal Investments
Topic: TIAA Trad Guaranteed Rate Increase
Replies: 19
Views: 1630

Re: TIAA Trad Guaranteed Rate Increase

I have searched for this in my own TIAA account and would appreciate knowing where or how this can be viewed and confirmed (?) I have a number of RC contracts and this minimum of 2.8% is something that sounds too good to be true. Yes, I know it's possible as my RA contract has a min rate of 3% It sounds from the original post that the information showed up (only?) upon confirmation of an exchange/purchase? THANKS! It showed up not just confirming transfer of funds into RC. If you have RC within your TIAA Trad plans, then you can see it when you log into your TIAA account, then go to the retirement plan with the RC plan in it and next to the big pie chart where it shows the percentage you have in various investment categories within this pl...
by JS-Elcano
Sun Jan 29, 2023 8:27 pm
Forum: Personal Investments
Topic: Thank you to everyone who encouraged me to buy more equities
Replies: 44
Views: 5411

Re: Thank you to everyone who encouraged me to buy more equities

CletusCaddy wrote: Sun Jan 29, 2023 8:25 pm
JS-Elcano wrote: Sun Jan 29, 2023 8:21 pm
AnnetteLouisan wrote: Sun Jan 29, 2023 7:53 pm
Wiggums wrote: Sun Jan 29, 2023 7:42 pm Thanks for the update. Great news indeed.
Thanks. I also stopped market timing. Finally.

Targets for this year are to get close to $1mil in tax deferred (750k now), 350k in taxable (180k now) and to get all but 150k of my 450k in HYSAs invested and further simplify. I already funded and maxed my I bonds and IRA, and set my 401k catch ups to max and funded my FSA. So now it’s set it and forget it.
Regarding what I bolded, how are you planning to do this?
One can save unlimited amounts of money in tax deferred via annuities
I didn't think of that. Thanks!
by JS-Elcano
Sun Jan 29, 2023 8:21 pm
Forum: Personal Investments
Topic: Thank you to everyone who encouraged me to buy more equities
Replies: 44
Views: 5411

Re: Thank you to everyone who encouraged me to buy more equities

AnnetteLouisan wrote: Sun Jan 29, 2023 7:53 pm
Wiggums wrote: Sun Jan 29, 2023 7:42 pm Thanks for the update. Great news indeed.
Thanks. I also stopped market timing. Finally.

Targets for this year are to get close to $1mil in tax deferred (750k now), 350k in taxable (180k now) and to get all but 150k of my 450k in HYSAs invested and further simplify. I already funded and maxed my I bonds and IRA, and set my 401k catch ups to max and funded my FSA. So now it’s set it and forget it.
Regarding what I bolded, how are you planning to do this?
by JS-Elcano
Sun Jan 29, 2023 11:44 am
Forum: Personal Investments
Topic: TIAA Trad Guaranteed Rate Increase
Replies: 19
Views: 1630

Re: TIAA Trad Guaranteed Rate Increase

Could this be what you are seeing? From the TIAA Fact Sheet: For Retirement Choice (RC) Contracts, a guaranteed rate is set each calendar year for amounts remitted in that calendar year. The floating guaranteed rate will be between 1%–3%, inclusive (based on the 5-year Constant Maturity Treasury Rate less 125 bps). The guaranteed rate for each calendar year remittance will be maintained for at least 10 years. Yes, this is it. Thank you for doing the reading for me. I should have just have dug into the docs myself :sharebeer This was useful for me. I found it right away because I knew that RC/RCP did not have a minimum guaranteed rate but a floating guaranteed rate . However, I had not taken time to understand the details since it has float...
by JS-Elcano
Sun Jan 29, 2023 11:41 am
Forum: Personal Investments
Topic: TIAA Trad Guaranteed Rate Increase
Replies: 19
Views: 1630

Re: TIAA Trad Guaranteed Rate Increase

ResearchMed wrote: Sun Jan 29, 2023 9:37 am
...

If they were already paying 6.5%, who would be likely to complain that it was composed of 1% + 5.5% instead of 2.8% + 3.7%, something most never would have even thought about?

...

RM
To me it does matter because the additional rate is adjusted frequently whereas the guaranteed rate for RC is set for 10 years for the money you contributed at that rate. So, even if the additional rate goes to 0% in the future I will still be getting 2.8% instead of only 1%. Important difference for me.
by JS-Elcano
Sun Jan 29, 2023 11:27 am
Forum: Personal Investments
Topic: TIAA Trad Guaranteed Rate Increase
Replies: 19
Views: 1630

Re: TIAA Trad Guaranteed Rate Increase

Katietsu wrote: Sun Jan 29, 2023 8:07 am Could this be what you are seeing?

From the TIAA Fact Sheet:
For Retirement Choice (RC) Contracts, a guaranteed rate is set each calendar year for amounts remitted in that calendar year. The floating guaranteed rate will be between 1%–3%, inclusive (based on the 5-year Constant Maturity Treasury Rate less 125 bps). The guaranteed rate for each calendar year remittance will be maintained for at least 10 years.
Yes, this is it. Thank you for doing the reading for me. I should have just have dug into the docs myself :sharebeer
by JS-Elcano
Sun Jan 29, 2023 11:26 am
Forum: Personal Investments
Topic: TIAA Trad Guaranteed Rate Increase
Replies: 19
Views: 1630

Re: TIAA Trad Guaranteed Rate Increase

VA_Gent wrote: Sun Jan 29, 2023 10:41 am Perhaps TIAA is anticipating rates being lower in the near future and want to prevent churn of this low rate account. I would think that would lower the cost of administering the plan.
You cannot "churn" money in the RC-type TIAA Trad account because it is not liquid.
by JS-Elcano
Sun Jan 29, 2023 11:23 am
Forum: Personal Investments
Topic: TIAA Trad Guaranteed Rate Increase
Replies: 19
Views: 1630

Re: TIAA Trad Guaranteed Rate Increase

When I complained to TIAA about RC/RCP paying more than [the original product ... with a longer lock-up! ] RA , their answer included the claim that it costs them less to run an RC account than it does an RA account. (That statement does not appear anywhere in black and white.) Note that TIAA Traditional does not have an SEC-regulated "Expense Ratio", and different flavors are in fact, paid for differently. While we just went through an unusually low-interest rate period, I think many TIAA Participants focus too much on their account's Guaranteed Minimum Interest Rate. And many less well-informed questioners here mistakenly believe/assume that the minimum is likely to be their maximum. Unless you have an online account login, and...
by JS-Elcano
Sat Jan 28, 2023 11:26 pm
Forum: Personal Investments
Topic: TIAA Trad Guaranteed Rate Increase
Replies: 19
Views: 1630

TIAA Trad Guaranteed Rate Increase

I have a stable value fund in my 457b that was paying 3.5%, but as of January is down to 3% going forward. So, I decided to put the money into my TIAA Trad account which is currently paying 6.5%. This is the 'Retirement Choice' (RC) flavor that is not liquid. I was a little hesitant at first because the guaranteed rate for RC is only 1%, but decided to do it nonetheless, in part because it is only 30k that I was looking to transfer. Today, I checked that the exchange had gone through and saw that the guaranteed rate has changed to 2.8%! :D The additional amount is 3.7% for a total crediting rate of 6.5%. My older vintages (pre-2023) in this RC account show the 1%. So it looks like TIAA decided to increase the guaranteed rate for Retirement ...
by JS-Elcano
Thu Jan 26, 2023 10:17 am
Forum: Personal Finance (Not Investing)
Topic: What’s Your 2023 Budget?
Replies: 197
Views: 19754

Re: What’s Your 2023 Budget?

Housing (PITI, utilities, HOA, maintenance) $26,556
Insurance (home, car, LTD, medical/dental/vision) $6,842 (2022 numbers, 2023 rates will likely go up)
Groceries (food, hygiene, household items) $6600
Services (phone, streaming, internet, AAA) $1,767
Automotive (gas, registration, maintenance, parking) $2,283
Entertainment (travel, tickets, dining out, hobbies) $25,100
Misc (clothing/gear, gifts, donations, other) $13,800
Annual Total $82,948

The bulk (~20k) of entertainment is for travel.
by JS-Elcano
Mon Jan 23, 2023 5:04 pm
Forum: Personal Investments
Topic: What X are we at? [Multiple of future years' expenses]
Replies: 30
Views: 2666

Re: What X are we at? [Percentage of future years' expenses]

In a way I feel I was exposed to the folly of looking at X (multiple of future expenses saved so far) for retirement readiness. Income streams and their starting dates matter a whole lot including whether mortgage is paid off or not. Keep in mind though that property taxes and home owners insurance will still need to be paid every year. Usually this is rolled into the monthly payment to the lender while one is paying off the mortgage. Make sure the 16k you are subtracting from your expenses is just the principal + interest payment and does not include taxes and insurance. In my case, taxes and insurance make up 23% of my current monthly "mortgage" payment, not a trivial amount. Also, make sure that your estimated expenses for ret...
by JS-Elcano
Wed Jan 18, 2023 7:36 am
Forum: Personal Finance (Not Investing)
Topic: Frugal Retirement Plan - Yay or Nay?
Replies: 129
Views: 13111

Re: Frugal Retirement Plan - Yay or Nay?

I expect to spend more than $20K annually just in medical expenses. If you can make it work on this budget, more power to you. I'm sorry to hear that. If there was one thing I could change in this country it would be the burden of medical care. It's bad enough if you have a health issue, but then to also have your financial life turned upside down, just isn't right. Why are your medical expenses so high? I'm not super familiar with health insurance, but with what I have now it seems that 100% of costs are covered once I pay my deductible. I priced an ACA plan for my spouse and I. The cost for premiums depends on age and zip code. For the two of us, unsubsuzed oremium costs for a silver plan were about $20K/year. I have good insurance now t...
by JS-Elcano
Tue Jan 17, 2023 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 3644
Views: 851572

Re: Share your net worth progression

1999 -$500 2000 $2,000 (estimate) 2001 $4,000 (estimate) 2002 $7,100 2003 $21,200 2004 $33,100 2005 $29,900 2006 $52,900 2007 $75,700 2008 $93,800 2009 $53,400 2010 $39,500 2011 $73,900 2012 $119,300 2013 $191,000 2014 $247,100 2015 $283,100 2016 $347,800 2017 $426,200 2018 $485,400 2019 $655,700 2020 $827,700 2021 $1,122,300 2022 $1,152,600 Rome wasn't built in a day, but they were laying bricks every hour (or in my case, biweekly :happy) Thanks for sharing your progression. While there are so many high income individuals on this forum I find progressions such as yours to be very inspiring as it is very similar to my own. It’s is easy to become a little discouraged when you see the incomes of some individuals on this forum when those who ...
by JS-Elcano
Sun Jan 15, 2023 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 3644
Views: 851572

Re: Share your net worth progression

CloudNine33 wrote: Sun Jan 15, 2023 7:42 am Dec 2, 2009... $1,004,496
Apr 19, 2011... $1,279,424
Jan 1, 2012... $1,334,355
Jan 1, 2013... $1,584,027
Jan 1, 2014... $1,960,249
Jan 1, 2015... $2,590,215
Jan 1, 2016... $3,027,682
Jan 1, 2017… $3,444,619
Jan 1, 2018... $4,085,790
Jan 1, 2019... $4,892,126
Jan 1, 2020... $5,236,242
Jan 1, 2021… $5,673,974
Jan 1, 2022… $6,840,351
Jan 1, 2023... $6,619,876

52/51 years old. Optimistic about 2023 and expecting to blow well past $7m. Of course this time last year I was hoping to hit $8m in 2022, apparently the market laughed at my optimism.
May I ask how much you are contributing every year?
by JS-Elcano
Sun Jan 15, 2023 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 3644
Views: 851572

Re: Share your net worth progression

1999 -$500
2000 $2,000 (estimate)
2001 $4,000 (estimate)
2002 $7,100
2003 $21,200
2004 $33,100
2005 $29,900
2006 $52,900
2007 $75,700
2008 $93,800
2009 $53,400
2010 $39,500
2011 $73,900
2012 $119,300
2013 $191,000
2014 $247,100
2015 $283,100
2016 $347,800
2017 $426,200
2018 $485,400
2019 $655,700
2020 $827,700
2021 $1,122,300
2022 $1,152,600

Rome wasn't built in a day, but they were laying bricks every hour (or in my case, biweekly :happy)
by JS-Elcano
Tue Jan 10, 2023 1:26 pm
Forum: Personal Consumer Issues
Topic: SUV or minivan - under $50k all in
Replies: 61
Views: 5619

Re: SUV or minivan - under $50k all in

Wannaretireearly wrote: Sun Jan 08, 2023 11:50 pm
the_wiki wrote: Sun Jan 08, 2023 11:28 pm We really like our VW Atlas with captains chair second row.

We drove a Traverse, but we preferred the interior of the VW.
Thanks. I’ve sworn off VW since my first Jetta experience, but should not let that affect future decisions really…
I am on my second VW Jetta and have had no issues at all. May I ask what your negatives were? I am considering a new car in a couple of years and would be all ears about your experience.