Search found 77 matches

by DSBH
Mon Oct 26, 2020 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 1000
Views: 317485

Re: Retiree Portfolio Model

for "$100k income" are you putting that in Pension section? Yes. for case #1 shouldn't E273/277 be $197,500 in order to get "100%" for details ? but, for your example you want them to be 0% because it's all unrealized capital gains, no distributions? sorry doesn't make sense, it must be you mean fo...
by DSBH
Mon Oct 26, 2020 12:41 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 20352
Views: 2781279

Re: U.S. stocks in free fall

... hopefully it doesn't drop further. Famous last words. Sure is. Reaching -3% soon. Well what can I do other than DCA... a dumb man like myself have no other choices. I am not sure I understand the issue. You are putting in 2k today, and you don't want it to drop further? I would think you would ...
by DSBH
Mon Oct 26, 2020 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 1000
Views: 317485

Re: Retiree Portfolio Model

this whole section I'm totally clueless to translate, maybe, if someone could give me a real life example? -- First I changed the text color to Black in cells Setup/F278 and G278 so you can see the percentages, then I set up a simple case where a MFJ couple has $100,000 income and also $100,000 exp...
by DSBH
Sun Oct 25, 2020 9:54 am
Forum: Personal Consumer Issues
Topic: Luxury car recommendation
Replies: 52
Views: 3033

Re: Luxury car recommendation

Luxury car recommendation from Bogleheads? Hmmm my best guess is a Toyota 4Runner Limited. And when you feel the urge for exotic cars, just rent one for a day.
by DSBH
Sat Oct 24, 2020 6:58 pm
Forum: Investing - Theory, News & General
Topic: Best way to mitigate the top heaviness of Total Stock Market Funds
Replies: 118
Views: 8431

Re: Best way to mitigate the top heaviness of Total Stock Market Funds

As I age and simplify my portfolio I love the idea of reducing my equity holdings to a single total stock market index fund. However I have concerns about the fact that in most of these funds 10 large companies compromise 20% of the fund value which reduces the diversification objective. Diversific...
by DSBH
Sat Oct 24, 2020 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion / Private Letter Ruling
Replies: 48
Views: 4579

Re: Roth Conversion / Private Letter Ruling

I'll confess that I've attempted to time my conversions to the extent that yesterday I took an amount equal to about 25% of my coming tax bill out of my taxable 500 index. Well I’ll admit that a few weeks ago I took 100% of my estimated tax bill out of my taxable TSM, and furthermore reduced my lon...
by DSBH
Sat Oct 24, 2020 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion / Private Letter Ruling
Replies: 48
Views: 4579

Re: Roth Conversion / Private Letter Ruling

I guess I'm not understanding something but in retrospect accidentally converting this large an amount in February might turn out to be a nearly best-possible case. I wish I'd made that mistake, since I still have to convert more this year - more than I knew I'd have to do when converting in the sp...
by DSBH
Sat Oct 24, 2020 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion / Private Letter Ruling
Replies: 48
Views: 4579

Re: Roth Conversion / Private Letter Ruling

If the closing agreement you are seeking results in a transaction reversal, basically a recharacterization, it will erase all the gains you might have. If a bond index was converted, there is obviously not much of a gain, but a recharacterization considers the gains in your entire Roth IRA account....
by DSBH
Sat Oct 24, 2020 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion / Private Letter Ruling
Replies: 48
Views: 4579

Re: Roth Conversion / Private Letter Ruling

... I did an on-line Roth conversion on 2/25 for what I thought was $2,500.00. When I checked my Vanguard account a few days later to look at the trade, I was shocked to see a transaction for almost $194,000. At first, I thought Vanguard put someone else’s money in my account. But when I saw that t...
by DSBH
Wed Oct 21, 2020 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: waited too long to buy a house - but starting to feel priced out..
Replies: 33
Views: 5224

Re: waited too long to buy a house - but starting to feel priced out..

I would suggest that you find a good realtor who really knows the area and did a lot of business in the area, ask her to show you several properties in your price range (say 1M), as well as 25% below and 25% above the price target. Then ask yourself if you’re willing to settle for less than what you...
by DSBH
Wed Oct 21, 2020 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: retirees? fixed amount vs fixed %
Replies: 39
Views: 2432

Re: retirees? fixed amount vs fixed %

One way to continue living in the house is to refinance w/ cash out for - 30-yr term, 3%, ~150k - resulting in approx. $1,000/month payment including tax, obviously not counting maintenance. They will need to accept the trade-off of 100% home ownership for more feasible/stable monthly cash flow. And...
by DSBH
Tue Oct 20, 2020 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: retirees? fixed amount vs fixed %
Replies: 39
Views: 2432

Re: retirees? fixed amount vs fixed %

for all retirees out there options 1 or option 2 1) are you withdrawing a fixed amount from initial portfolio (4% plus inflation adjustment) or 2) withdrawing a fixed percentage (6% from portfolio balance ) (option 2 is less risky, self correcting, and you essentially never run out of money) and wh...
by DSBH
Mon Oct 19, 2020 1:05 pm
Forum: Personal Investments
Topic: At what age did you start moving into bonds?
Replies: 79
Views: 4375

Re: At what age did you start moving into bonds?

Late 40's, when I convinced myself that I probably had at most ~10 years of working left with Megacorp, and would not have enough time to work & earn back a several-year-long 30-35% stock market correction, so I glided to a 60/40 AA. It just happened that I got a package from Megacorp @59 3 years ag...
by DSBH
Mon Oct 19, 2020 11:00 am
Forum: Personal Consumer Issues
Topic: Should I get a ping pong table?
Replies: 67
Views: 3147

Re: Should I get a ping pong table?

Ping pong table could be a lot of fun. If you have small children you will need to be extra careful when they run around the table, making sure they don’t run into the sharp corners. Happened to my 3-yr old daughter almost 30-yrs ago, after which terrible incident we sold our pool table - fortunatel...
by DSBH
Mon Oct 19, 2020 10:48 am
Forum: Personal Consumer Issues
Topic: Convince us to buy our first luxury car!
Replies: 193
Views: 10370

Re: Convince us to buy our first luxury car!

It is hard to see you driving either an Audi or Porsche for 220,000 miles, it will likely be an expensive proposition even if you buy new. You can afford some luxury, I would buy a low mileage 2-yr old CPO and trade it in around 70k miles or so before the maintenance on average really gets expensive.
by DSBH
Sun Oct 18, 2020 1:00 pm
Forum: Investing - Theory, News & General
Topic: Is anyone waiting until after the election?
Replies: 309
Views: 20244

Re: Hedging the 2020 Election

Just wondering if anyone is going to try to hedge the 2020 election? I doubt the election will be decided quickly, and expect a lot of volitivity. Has anyone else given thought to this? I am considering moving all my 401k equity holdings to a bond fund for the duration of the volatility, and then m...
by DSBH
Fri Oct 16, 2020 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 1000
Views: 317485

Re: Retiree Portfolio Model

"Is there an RPM-for-dummies type guide in one of these posts?" Don't know anything about dummies but I have been using RPM for a few months, and am still learning. I used the following steps when I began: 1. Model a very simple example of a MFJ retired couple with pensions, SS, pays federal taxes ...
by DSBH
Wed Oct 14, 2020 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Return contributions to Backdoor Roth IRA
Replies: 4
Views: 239

Re: Return contributions to Backdoor Roth IRA

I doubt if there is any regular way to fix this as others have stated, but perhaps you can try a couple of approaches. You can contact a Vanguard rep and ask them if they have previously seen a situation similar to yours and known of any successful resolution. Another approach is to contact the IRS ...
by DSBH
Mon Oct 12, 2020 8:06 am
Forum: Personal Finance (Not Investing)
Topic: College Finance 101 and Privacy Issues
Replies: 27
Views: 1928

Re: College Finance 101 and Privacy Issues

Sharing normal spending numbers should be ok but income/savings not so much. I would give enough income to cover spending and a small saving number for the class exercises to work but that’s about it.
by DSBH
Sun Oct 11, 2020 7:50 pm
Forum: Personal Investments
Topic: Roth conversion How aggressive 22% or 24%?
Replies: 99
Views: 8240

Re: Roth conversion How aggressive 22% or 24%?

Hi, We have been doing conversions over the past few years. I have been converting to the top end of the 22% tax bracket. We have no children so conversion for heirs benefit is minimal consideration. 24% bracket doesn't seem bad, compared to future RMD's, but am not sure how aggressive to get on co...
by DSBH
Sun Oct 11, 2020 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Change allocation -Close to #
Replies: 26
Views: 1236

Re: Change allocation -Close to #

If one does choose to hold a 50% allocation to bonds for decades, would a sizable % to TIPs be wise especially given current conditions? History, which may or may not repeat, shows that 50% stock should be enough to outduel inflation in the long run but if you’re worrying sick over it and wants to ...
by DSBH
Sun Oct 11, 2020 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Change allocation -Close to #
Replies: 26
Views: 1236

Re: Change allocation -Close to #

The thinking is that losing wealth is much more painful and may require more years of work. While a lower upside is more tolerable and doubling my money with current savings rate and real growth of 2-3% (50% stocks) is more desirable. Will have close to 5 mil in 9 years with current savings and 3% ...
by DSBH
Sun Oct 11, 2020 10:47 am
Forum: Personal Investments
Topic: Roth conversion How aggressive 22% or 24%?
Replies: 99
Views: 8240

Re: Roth conversion How aggressive 22% or 24%?

I'm projecting my yearly Roth conversion amounts based my estimated income subtracted from my desired AGI amount using a spreadsheet. I project by year for all the years up to 72. I then subtract the total conversion amount from the tIRA, along with a growth factor, to estimate my RMD at 72. I thin...
by DSBH
Sun Oct 11, 2020 10:39 am
Forum: Personal Investments
Topic: Roth conversion How aggressive 22% or 24%?
Replies: 99
Views: 8240

Re: Roth conversion How aggressive 22% or 24%?

Do you expect a large sum of qualified dividends, LTCGs, and tax exempt interest? It may push you to a high IRMAA? In my case, I will pay the 2nd highest IRMAA. Enough (from history) so that between all that and the pensions, SS benefits (for DW, I plan on waiting till 70), and over-saved T-IRAs th...
by DSBH
Sat Oct 10, 2020 6:50 pm
Forum: Personal Investments
Topic: Roth conversion How aggressive 22% or 24%?
Replies: 99
Views: 8240

Re: Roth conversion How aggressive 22% or 24%?

This is a better summary of what I'm doing: Given a fixed AA, the way to maximize your spendable amount of money is to keep the tax rate constant which is not necessarily the same as minimizing the amount of taxes you pay over time. This is math. As I said: My goal is to pay the same percentage in ...
by DSBH
Fri Oct 09, 2020 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Upsizing (House) in Retirement?
Replies: 24
Views: 2486

Re: Upsizing (House) in Retirement?

My wife and I are both retired, 65 yrs old, already taking Social Security. We own our home with no mortgage. We could probably clear $300k on the sale of our house. We have about $800k in our combined retirement accounts and another $75k in savings/investments (I can go into more detail if needed)...
by DSBH
Tue Oct 06, 2020 6:28 pm
Forum: Personal Investments
Topic: Just one or more brokerage accounts necessary?
Replies: 9
Views: 1037

Re: Just one or more brokerage accounts necessary?

What would a boglehead do? For this one, make sure beneficiaries are specified for all accounts.
by DSBH
Tue Oct 06, 2020 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Best Course of Action for getting out of Debt?
Replies: 57
Views: 3915

Re: Best Course of Action for getting out of Debt?

Similar to other suggestions, if possible I would replace the car and car loan with a cheap old Toyota Corolla or something similar, seriously look at budget, and debt avalanche.
by DSBH
Tue Sep 29, 2020 12:53 pm
Forum: Personal Investments
Topic: RSU Exit Strategy
Replies: 17
Views: 1543

Re: RSU Exit Strategy

I’ve held onto RSUs for too long and am at a big loss. I believe in the company and the upside of the industry as a whole (Energy) and do not want to dump at the current prices. ... My current exit thoughts are either keep vesting and sitting on everything until I can sell it all to break even and ...
by DSBH
Mon Sep 28, 2020 4:45 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 251
Views: 17990

Re: Never Ever Rebalance Bonds into Stocks?

I think that rational people generally optimize more often that not, but different people optimize different things (e.g. why some like to buy luxury items), and if people have the same objective function (e.g. " Maximize " portfolio return over certain period of time) they may attach different cond...
by DSBH
Mon Sep 28, 2020 11:44 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 251
Views: 17990

Re: Never Ever Rebalance Bonds into Stocks?

Very interesting discussions. Limiting my comments to the retirement/decumulation phase as a 62 year old retiree I won't rebalance bonds into stocks what I cannot afford to lose (I think that Mr. Taylor Larimore may have mentioned something similar in another thread) in order to best maintain my 2 m...
by DSBH
Thu Sep 24, 2020 7:48 pm
Forum: Investing - Theory, News & General
Topic: Is anyone waiting until after the election?
Replies: 309
Views: 20244

Re: Is anyone waiting until after the election?

Between which party would control the White House, the Senate, the House, and whether the Supreme Court will have 8 or 9 members after Election Day, there are in theory 16 possible scenarios. If you are going to wait till after the election before deciding what to do, do you have a plan for each of...
by DSBH
Thu Sep 24, 2020 7:39 pm
Forum: Personal Consumer Issues
Topic: What is the single best piece of exercise equipment you bought for your home?
Replies: 245
Views: 15397

Re: What is the single best piece of exercise equipment you bought for your home?

My old treadmill, I try to walk 2 miles a day in about 34 minutes, at least 5 days a week.

Second piece is my old TotalGym for about 15 minute worth of resistance workout after the walk.
by DSBH
Thu Sep 24, 2020 7:24 pm
Forum: Investing - Theory, News & General
Topic: Is anyone waiting until after the election?
Replies: 309
Views: 20244

Re: Is anyone waiting until after the election?

Between which party would control the White House, the Senate, the House, and whether the Supreme Court will have 8 or 9 members after Election Day, there are in theory 16 possible scenarios. If you are going to wait till after the election before deciding what to do, do you have a plan for each of ...
by DSBH
Sun Sep 20, 2020 7:58 pm
Forum: Investing - Theory, News & General
Topic: Best Books for Complete Beginners
Replies: 22
Views: 1769

Re: Best Books for Complete Beginners

“The intelligent asset allocator” which I bought almost 20 years ago and still referred to every now and then - https://www.amazon.com/Intelligent-Asset-Allocator-Portfolio-Maximize-ebook/dp/B005XM6NRY Will buy this one soon - https://www.amazon.com/Bogleheads-Guide-Three-Fund-Portfolio-Outperforms/...
by DSBH
Sat Sep 19, 2020 9:31 pm
Forum: Personal Investments
Topic: Losing Money with Index Funds
Replies: 149
Views: 13986

Re: Losing Money with Index Funds

So is there NEVER a good time to cash out?? What if you are 85 yrs old and you don't have any kids or anybody to give your inheritance to? My husband and I do NOT plan on having kids and we want to enjoy our money before we croak. :shock: When is a good time to cash out? Well as I get older (say st...
by DSBH
Sat Sep 19, 2020 6:51 pm
Forum: Personal Investments
Topic: Losing Money with Index Funds
Replies: 149
Views: 13986

Re: Losing Money with Index Funds

So is there NEVER a good time to cash out?? What if you are 85 yrs old and you don't have any kids or anybody to give your inheritance to? My husband and I do NOT plan on having kids and we want to enjoy our money before we croak. :shock: My AA was 100% stock when I was in my 30's, now (as a retire...
by DSBH
Tue Sep 15, 2020 9:47 am
Forum: Personal Investments
Topic: Where to start - advising my DS #2
Replies: 28
Views: 2059

Re: Where to start - advising my DS #2

So I'm thinking the best choice for him would be to create a Roth IRA, and max it out at $6k and call it good for this year. Thoughts? Totally agree. If he cannot or won't do this, then give him the money to do it if you have it. +1. First ask him to put up 3k and offer 1:1 matching, if he disagree...
by DSBH
Mon Sep 14, 2020 8:27 pm
Forum: Personal Investments
Topic: Safer investments for 8m over 2-3 years?
Replies: 28
Views: 2866

Re: Safer investments for 8m over 2-3 years?

Imho, Vanguard Target Retirement Income (VTINX) for 2 to 3 yrs / as long as you like.
by DSBH
Fri Sep 11, 2020 1:19 pm
Forum: Personal Investments
Topic: Asset Allocation at age 61
Replies: 61
Views: 6998

Re: Asset Allocation at age 61

Thoughts on Asset Allocation recommendation for 61 year old single female with $2 million, no debt, no job. Monthly expenses, including estimated taxes figured in, approximately $4,500 a month or $55,000 a year. I won't take social security until 70 ($1,240 month). I'm inclined to go to 40 equities...
by DSBH
Fri Sep 11, 2020 10:16 am
Forum: Investing - Theory, News & General
Topic: ROTH Conversion and Portfolio Re-Balancing during decumulation phase
Replies: 4
Views: 466

Re: ROTH Conversion and Portfolio Re-Balancing during decumulation phase

It takes a long time for A-2 to catch up with and get ahead of A-1.... What measurement is used to define "catch up with"? If "sum of account balances," that neglects the tax cost to access the tIRA. You're right, thanks. I may try to compare after-tax values between A-2 and A-1 every 10 years or s...
by DSBH
Fri Sep 11, 2020 9:46 am
Forum: Investing - Theory, News & General
Topic: ROTH Conversion and Portfolio Re-Balancing during decumulation phase
Replies: 4
Views: 466

Re: ROTH Conversion and Portfolio Re-Balancing during decumulation phase

You have the ability to do some free Roth conversions in retirement due to your large taxable balance. You can withdraw living expenses from taxable, which will keep your income will be low enough to allow for Roth conversions in the “0% tax bracket”. Here is my thread on Roth conversions after sta...
by DSBH
Thu Sep 10, 2020 4:39 pm
Forum: Investing - Theory, News & General
Topic: ROTH Conversion and Portfolio Re-Balancing during decumulation phase
Replies: 4
Views: 466

ROTH Conversion and Portfolio Re-Balancing during decumulation phase

I have been on board with the tax-efficient, 3-fund portfolio strategy during accumulation phase, and recently as a retiree in decumulation phase have been thinking about how to optimize the after-tax portfolio left for heirs. I learned from Bogleheads that I should look at ROTH conversion strategie...
by DSBH
Thu Sep 03, 2020 1:37 pm
Forum: Personal Investments
Topic: What is your game plan as market is reaching its previous all time high?
Replies: 174
Views: 19255

Re: What is your game plan as market is reaching its previous all time high?

Similar game plan as has been for many years (except for maximum pre-tax and after-tax savings from job now that I am retired): 1. Stay fully invested, 2. Emergency fund to cover 1-yr of expenses after pension, 3. Try to be tax efficient: 100% stock in ROTH first, as much stock as possible in Taxabl...
by DSBH
Wed Sep 02, 2020 10:47 am
Forum: Investing - Theory, News & General
Topic: What is your age and asset allocation ?
Replies: 246
Views: 15519

Re: What is your age and asset allocation ?

I am wondering how much tax-efficient investment strategies are being followed by BHs, so mine: both 62, 60/40 portfolio AA. 40% of portfolio in Taxable: 30% total stock index, 10% total international index & emergency fund in short term bond. 55% in Tax deferred IRA: 15% total stock index, 40% tota...
by DSBH
Tue Sep 01, 2020 5:51 pm
Forum: Investing - Theory, News & General
Topic: "Bogleheads 3 Fund Portfolio Review"
Replies: 8
Views: 948

Re: "Bogleheads 3 Fund Portfolio Review"

Thanks for posting. As someone that is not horribly knowledgeable about investing, I simply put money into Vanguard Target Retirement 2040. However, this fund has much more than 20% of equities in international. What is the reason(s) for this? Thank you. The current Vanguard analysis is to use a si...
by DSBH
Tue Sep 01, 2020 3:20 pm
Forum: Investing - Theory, News & General
Topic: "Jack Bogle's Simple Advice for Investors"
Replies: 60
Views: 6351

Re: "Jack Bogle's Simple Advice for Investors"

My question is if there are any data or studies that objectively demonstrate that simplicity improves performance. This is not exactly either data or studies but anyhow, according to this CNN report: "One decade ago, Warren Buffett took a $1 million wager that stashing money in an index fund would ...
by DSBH
Fri Aug 28, 2020 2:37 pm
Forum: Investing - Theory, News & General
Topic: "Jack Bogle's Simple Advice for Investors"
Replies: 60
Views: 6351

Re: "Jack Bogle's Simple Advice for Investors"

I have graduated from individual stock trading (half of the time using the "Technical Analysis" method aka "Buy Low Sell Lower" strategy), to Fidelity Magellan / sector funds / emerging market funds, to 50/10/40 happy retiree (50% US stock, 10% international stock, 40% intermediate bond index) low c...
by DSBH
Thu Aug 27, 2020 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 1000
Views: 317485

Re: Retiree Portfolio Model

It''s been a couple years since this question and response. Has anyone implemented a full workaround for this yet? In my case, the difference in ages between my spouse and me, and the number of years we have to do conversions due to the 2019 SECURE Act, make it compelling to draw down IRA1 then par...