Search found 145 matches

by HENRYGRUGER
Tue Mar 12, 2024 6:04 pm
Forum: Personal Investments
Topic: Portfolio review request - helping parents in 70s overhaul their investments
Replies: 12
Views: 1448

Re: Portfolio review request - helping parents in 70s overhaul their investments

Hi Folks! I am helping my parents overhaul their investments, and would greatly appreciate input on the overall soundness and fund placement of the approach I’ve outlined below. If you have any suggestions on how to improve or revise this plan, I would welcome them! Many thanks! Situation: my parents are both in their early-mid 70s, live in California, and are retired. They have income from social security and pensions that exceeds their expenses. They additionally have a generous long-term care policy that would help cover a sudden long-term care expense. They currently have combined total assets of about $5.3M across taxable, traditional, and Roth (does not include their ownership interest in their home). Since they do not rely on these ...
by HENRYGRUGER
Tue Mar 12, 2024 5:46 pm
Forum: Personal Investments
Topic: RMD from various IRAs
Replies: 4
Views: 481

Re: RMD from various IRAs

My DH has a tIRA and 3 annuities Edited: IRA Annuities (Don't judge, it was a weak moment). He has obtained the appropriate RMD amounts from the TIRA and 2 of the Annuities. Is it ok to request the remaining RMD amount from one of the other Annuities as a penalty free distribution and not as an RMD, then show it on our Tax forms as applied to the RMD? Or should we just resubmit another RMD request? This is obviously his first RMD year. TIA Lalamimi: For 2024, I had RMDs due from three qualified accounts. I is a traditional IRA, 1 is a 403b, and 1 was an IRA Annuity. The total of the IRAs can be taken from either one of the IRAs. The RMD from a 401k or 403b falls into a different category, as they cannot be "paired" with IRAs. In ...
by HENRYGRUGER
Tue Mar 12, 2024 5:36 pm
Forum: Personal Investments
Topic: Is it Too Late to Invest in VTI?
Replies: 126
Views: 19026

Re: Is it Too Late to Invest in VTI?

Where are my Bond holdings? In Fixed Annuities with Income Riders, growing the income account values at 8.25% annually guaranteed, regardless of market performance or lack thereof. Just FYI, you're not really getting 8.25% return on those. Growing the "income account" is not the same as growing "cash value". It's a fake "guarantee" which the insurance companies use to hook people into annuities. But... We plan to "turn them on" in 7 years, to supplement our Social Security, which currently provides 111% of our retirement expenses , including 1 vacation trip annually and 10% of our gross income devoted to charitable giving. Sounds like you're in great shape no matter what :) Congrats! Homer: "Jus...
by HENRYGRUGER
Mon Feb 19, 2024 5:24 pm
Forum: Personal Investments
Topic: Is it Too Late to Invest in VTI?
Replies: 126
Views: 19026

Re: Is it Too Late to Invest in VTI?

FWIW, I put another $14k in VTI today Smart man! I retired last month and rolled over the remainder of my 403b account to Vanguard. (I did an in service distribution of $330,000 in 2022.) This time it was $80,000 in deferred and $3,520 in Roth. 80% went into VTI and the balanced went into VXUS. My current Vanguard portfolio is 100% in VTI and VXUS...(combined 80/20) 27.36% in Roth Accounts, 41.55% in Deferred Accounts, 31.09% in Taxable Accounts. Where are my Bond holdings? In Fixed Annuities with Income Riders, growing the income account values at 8.25% annually guaranteed, regardless of market performance or lack thereof. We plan to "turn them on" in 7 years, to supplement our Social Security, which currently provides 111% of o...
by HENRYGRUGER
Mon Feb 19, 2024 4:01 pm
Forum: Personal Investments
Topic: Are we a good fit for Vanguard Personal Advisor, at least for now?
Replies: 45
Views: 5660

Re: Are we a good fit for Vanguard Personal Advisor, at least for now?

Vanguard offers two levels of non-robo advice services: 1) Personal Advisor and, 2) Personal Advisor Select. My wife (34 yo) is largely hands-off on the finances, despite my (also 34 yo) attempts to get her more involved. I'd like her to be, or feel, more involved because I'm an LEO in a large city, and someone could hit my "off button" on any given day. We currently have approximately $150,000 total amongst her rIRA, my rIRA, and a taxable account, as well as approximately $250,000-300,000 in cash. I contribute to my 457b and our daughter's 529 plan. Our house is paid off and we have no debt. I have a decent pension coming when I retire. I'm considering using Vanguard Personal Advisor for several reasons: I expect that an adviso...
by HENRYGRUGER
Sat Feb 03, 2024 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: New Car Extended Warranty?
Replies: 47
Views: 4131

Re: New Car Extended Warranty?

I'm generally never a warranty guy, but...hear me out. We just bought a brand new 2024 Honda CR-V Sport Touring AWD Hybrid. I can get an 8 year, 120k mile extended warranty from Honda for about $1,200. I'm currently a AAA member for roadside assistance with membership dues of about $92 a year. The new car doesn't have a spare tire and my thought process is that over 8 years and given AAA membership fees over 8 years ($736 total), the extended warranty includes roadside assistance from Honda and would on net cost me about $500 total ($1200 warranty cost minus $736 by dropping AAA, which I wouldn't need for the roadside assistance since it's provided in the extended warranty). I know Honda's are very reliable if well maintained, but I think ...
by HENRYGRUGER
Sat Jan 20, 2024 12:53 am
Forum: Personal Finance (Not Investing)
Topic: No-state-income-tax states are not good for retirees.
Replies: 413
Views: 39172

Re: No-state-income-tax states are not good for retirees.

I've always found this tool interesting: https://smartasset.com/retirement/retirement-taxes We moved from OR to WA for a number of reasons, including income tax. We plan to do significant Roth conversions in early retirement so that might be to our advantage. To be honest though, I would not know how to calculate the various changes in taxes and COL to determine with absolute confidence that we have come out ahead. My wife has a friend who lives in Vancouver WA. She drives to Oregon to shop and gets the best of both worlds...no state income tax in one and no sales tax in the other. To me...sounds like too much driving. Ha! My concern is taxation of sources of income. Since I live in NC, and NC doesn't tax SS benefits, and since my other in...
by HENRYGRUGER
Tue Nov 07, 2023 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Life, Disability, Umbrella Insurance - Need Insights
Replies: 46
Views: 6514

Re: Life, Disability, Umbrella Insurance - Need Insights

There have been many opinions shared with you so far, many of them containing useful and factually correct responses. I will attempt to tie it all together for you. Thank you for your excellent, comprehensive response to OP’s questions. You’ve given him a great road map to follow. There is only one point in your post that I would take issue with. Here it is: Lastly, meet with a trusted life insurance broker. Have him/her give you quotes from AM Best Rated carriers, rated A+ or higher. Consider the features and benefits of a Quality, Level Premium, Term Insurance Policy and a Quality UL Life Insurance policy. I haven’t seen anything in OP’s posts in this thread that indicate a need for “permanent” life insurance of any type. So I’d suggest ...
by HENRYGRUGER
Sat Nov 04, 2023 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1413597

Re: What's Your Credit Card Rewards Strategy?

My primary goal is cash back

For that goal I use the Wells Fargo Active Cash card. 2% back on everything, all the time. I have no desire to spend time figuring out who is best for what, when.

A secondary Card is the BJ's Mastercard, for groceries and gas. ALL Purchases earn cash rewards and the Gas Pump discounts are immediate.

Lastly I use my Amazon Card for everything I order on Amazon.

Simply and easy...and efficient.
by HENRYGRUGER
Sat Nov 04, 2023 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1413597

Re: What's Your Credit Card Rewards Strategy?

My primary goal is cash back

For that goal I use the Wells Fargo Active Cash card. 2% back on everything, all the time. I have no desire to spend time figuring out who is best for what, when.

A secondary Card is the BJ's Mastercard, for groceries and gas. ALL Purchases earn cash rewards and the Gas Pump discounts are immediate.

Lastly I use my Amazon Card for everything I order on Amazon.

Simply and easy...and efficient.
by HENRYGRUGER
Sat Nov 04, 2023 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Question for Married Bogleheads - % to allocate to joint accounts
Replies: 174
Views: 13256

Re: Question for Married Bogleheads - % to allocate to joint accounts

Logan... Like another responder, I am coming up on 50 years married so my experience and yours will be dramatically different, but since the day I married my wife, we have had 100% joint accounts on everything except IRAs and 401ks/403bs. And my wife took my last name. None of this hyphenated stuff, or retaining her last name after marriage, so common today. The last few cohorts after the Boomers have had distinctively different attitudes towards marriage and finances. None of it makes any sense to me, but I attribute that to my being a very traditional husband and my wife being a very traditional wife. The correct amounts and percentages are whatever you and your future wife determine is best for you both. That should be discussed well bef...
by HENRYGRUGER
Sat Nov 04, 2023 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Life, Disability, Umbrella Insurance - Need Insights
Replies: 46
Views: 6514

Re: Life, Disability, Umbrella Insurance - Need Insights

Mander 75: There have been many opinions shared with you so far, many of them containing useful and factually correct responses. I will attempt to tie it all together for you. Disclosure: After 28 years in Banking and Finance, I spent a decade as a Property & Casualty Agency Owner for one of the largest consumer insurance companies in the US, so I am intimately familiar with umbrella Insurance, as well as Auto, Home and Life insurance. To qualify for an Umbrella Insurance Policy , you must have what is known as underlying coverages in the correct amounts. For Auto, this is usually $250/$500/$100. For Homeowners the minimum liability coverage needed is $300,000. These numbers could differ slightly, depending on Company and State Insuranc...
by HENRYGRUGER
Sat Nov 04, 2023 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Do we have too much long term care insurance?
Replies: 15
Views: 1915

Re: Do we have too much long term care insurance?

Ismael1: Too Much LTCi? I am not sure there could be such a thing. You are both most likely 7-10 years from the typical age for LTC to occur. The cost of care will continue to increase in those 7-10 years, so, NO you do not have "too much LTCi insurance." Back in the late 1990's, Genworth was the Cadillac of LTCi. Through a series of management changes and poor decisions by management, as well as market shifts requiring premium increases, in the early 2000s Genworth joined all the other companies and began raising premiums. They have continued to honor their policies and claims are being paid. You said you can afford the premiums and you think they are reasonable, so you answered your own question.. Chances are should either of yo...
by HENRYGRUGER
Mon Sep 04, 2023 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

Rex66 wrote: Sat Jul 29, 2023 10:33 pm The OP is likely talking about standard deductions and the such and attributing that to annuities even though that isn’t the case and forgetting one loses the step up. Glad the oP is happy but it’s funny how the op claims inaccurate info by others.
Rex66:

I was referring to my Total Income, comprised of Social Security benefits and Annuity Income dollars. The current standard deductions rules, in consideration of taxation of Social Security benefits, added to Annuity Income dollars, which were funded with Roth IRA dollars, will result in Zero Income Tax liability.

Contrary to your snarky remark, I was not "forgetting one loses the step up," as that has ZERO to do with tax free income.

HenryG
by HENRYGRUGER
Mon Sep 04, 2023 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

OP here... Thanks for all the input, even from the "Haters." I would appear that Haters just can't help themselves. Likewise, there are many who make statements of fact which are not, in fact accurate. Many have been corrected by other Bogleheads and some are just not worth the time needed to correct the person making the assertions. I learned years ago, "The man convinced against his will, is of the same opinion, still." I did decide how to fund my retirement, and it included a number of FIA w/Income Riders. It also includes a HECM for purchase Line of Credit, which grows at the same rate as the outstanding mortgage balance. In the Month of July, 2023, I will earn @ $1,332 in interest growth on the LOC while paying (ac...
by HENRYGRUGER
Mon Sep 04, 2023 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

Stinky (or anyone else): If you were looking for a guaranteed lifetime income for a married couple, would you recommend individual Single Premium Immediate Annuities (SPIAs) or a jointly owned SPIA -- or something else? Pat and I purchased jointly owned SPIAs in our early 80s, but I've often wondered if we should have purchased individually owned SPIAs? I'm thinking about premiums and State guarantees. Thank you for your many excellent contributions to this forum. Taylor Jack Bogle's Words of Wisdom: "Depending on the particular circumstances, annuities are a good idea, but only annuities available at very low cost and commensurately high return." Taylor, I am with Stinky on this. Joint Life for Married Couples. No real advantage...
by HENRYGRUGER
Sat Jul 29, 2023 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

OP here... Thanks for all the input, even from the "Haters." I would appear that Haters just can't help themselves. Likewise, there are many who make statements of fact which are not, in fact accurate. Many have been corrected by other Bogleheads and some are just not worth the time needed to correct the person making the assertions. I learned years ago, "The man convinced against his will, is of the same opinion, still." I did decide how to fund my retirement, and it included a number of FIA w/Income Riders. It also includes a HECM for purchase Line of Credit, which grows at the same rate as the outstanding mortgage balance. In the Month of July, 2023, I will earn @ $1,332 in interest growth on the LOC while paying (act...
by HENRYGRUGER
Sat Jul 29, 2023 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a CPA "in the house?"
Replies: 6
Views: 1616

Re: Is there a CPA "in the house?"

vnatale:

Thank you for the referral to Mr. Piper.

In the interim, I have figured it out and taken action to finalize my streams of income for retirement...and my remaining portfolio investments.
by HENRYGRUGER
Sat Jul 29, 2023 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a CPA "in the house?"
Replies: 6
Views: 1616

Re: Is there a CPA "in the house?"

Thank you for the referral to Mr. Piper.

In the interim, I have figured it out and taken action to finalize my streams of income for retirement...and my remaining portfolio investments.
by HENRYGRUGER
Thu Jul 13, 2023 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a CPA "in the house?"
Replies: 6
Views: 1616

Is there a CPA "in the house?"

Fellow BHs,

Do we have any practicing CPAs or CPA/PFSs "in the house."

I am having a difficult time locating a CPA able to comment on a series of strategies I am considering for my retirement in 177 days.I want to make sure I am considering all aspects of the tax situations.

I am not looking for pro bono advice. I am expecting to pay for said professionals time.

Thanks,

HenryGRuger
by HENRYGRUGER
Thu Jul 13, 2023 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

FWIW, in anticipation of retirement this summer we have purchased a number of 5- and 7-year MYGA's (all at over 5%), and a SPIA. All insurers are A or A+. PS Poster "Stinky" started a very interesting thread on MYGA's. MYGAs aren't fixed index annuities either. I put fixed index annuities in the "bad" category. The good category (for the person who really wants the benefit they're paying for) includes: 1. SPIAs (for those who want guaranteed income) 2. DIAs/QLACs (longevity insurance) 3. MYGAs (CD alternative) 4. Low cost VAs (for swapping cash value life insurance value into in order to get tax-free growth back to basis and for very tax inefficient asset classes) But fixed index annuities? Yuck. High commissions. Lots ...
by HENRYGRUGER
Thu Jul 13, 2023 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgage-LOC as Long Term Care (LTC) Insurance
Replies: 20
Views: 1644

Re: Reverse Mortgage-LOC as Long Term Care (LTC) Insurance

Wrench: Yes, the fees can seem to be very high, but when viewed in the overall picture of the strategy you are using, and especially if the fees are "rolled in," they really do make sense. I have a friend who is a recognized authority on Reversed Mortgages. He has a website that explains the features and benefits in easily understood, consumer friendly language. www.housingwealthmasterclass.com (I am not affiliated with him in any way, other thanking a full time faculty member at an institution where he is an Adjunct Professor.) I agree wholeheartedly regarding the current situation on rates. Since the FHA REQUIRES HECM to earn he same rate that is being charged, NOW is the time to have a HECM with LOC. Thanks for your response an...
by HENRYGRUGER
Thu Jul 13, 2023 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

mickeyd wrote: Sun Jul 09, 2023 10:48 am Almost all of the positive articles that I have read regarding FIA/EIA are company or industry generated. They seem to me to be marketing pieces. Consider the source.
Mickey,

Respect for the CIB.

As far as "positive articles being industry generated," do you expect them to bash their own products? Why would they, when there are legions, of opinionated, know nothing, "Sure Ormands" in the financial plates already doing that. I am thinking of "Money Magazine" type publications vs "Kiplinger's" type publications.

Never have so many pontificated so much on products the understand so little.
by HENRYGRUGER
Thu Jul 13, 2023 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

Stinky: Yes...I did buy 2 FIA with Income Riders. American Equity Income 10, with 7 year surrender charges. One in My Name and One in My wife's. Mine for $150K and Hers for $50K. Funded with ROTH dollars, so all future Income will be Tax Free Income. My plan is to wait 5-7 years to turn on income. (I will be 80 in 7 years) In the interim, the funds used to determine the income payout enjoy a 8.5% rollup, and each has an Income Doubler feature in the event of needing LTC care, as determined by being unable to perform 2 of 6 ADLs. We are beneficiaries of each other's policies, so in the event of needing care, my wife gets a 100% doubler as well as a 40% of my income doubler. Not as good as Long Term Care Insurance, but she can't qualify for ...
by HENRYGRUGER
Sat Jul 08, 2023 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgage-LOC as Long Term Care (LTC) Insurance
Replies: 20
Views: 1644

Re: Reverse Mortgage-LOC as Long Term Care (LTC) Insurance

Wrench: What did you decide? Did you pursue the RM w/LOC? I am looking at a situation with my "HECM for Purchase" RM. My wife and I built a new home in 2018, and financed it with a HECM for Purchase Reverse Mortgage. Initially, this was a fixed rate loan without an LOC. In 2020, I refinanced it into a RM w/LOC. I am going to be retiring in January 2024. At present, we have a home worth @ $410,000 with a Reverse Mortgage Pay off of $215,643. My current rate for August 2023 will be 7.25%. I am considering paying down the Reverse Mortgage to $50 or some de minimus amount, to keep the mortgage open, and having a $220,000 line of credit available, being credited 7.25%. (Rates vary monthly, top or down.). The funds can be from a Brokera...
by HENRYGRUGER
Sat Jul 08, 2023 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

Stinky: Yes...I did buy 2 FIA with Income Riders. American Equity Income 10, with 7 year surrender charges. One in My Name and One in My wife's. Mine for $150K and Hers for $50K. Funded with ROTH dollars, so all future Income will be Tax Free Income. My plan is to wait 5-7 years to turn on income. (I will be 80 in 7 years) In the interim, the funds used to determine the income payout enjoy a 8.5% rollup, and each has an Income Doubler feature in the event of needing LTC care, as determined by being unable to perform 2 of 6 ADLs. We are beneficiaries of each other's policies, so in the event of needing care, my wife gets a 100% doubler as well as a 40% of my income doubler. Not as good as Long Term Care Insurance, but she can't qualify for L...
by HENRYGRUGER
Wed Jun 14, 2023 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

As an "accumulation vehicle", Bogleheads generally don't like indexed annuities. Poster afan summarized it well upthread: The bogleheads problems with the indexed annuities are their complexity, opacity and cost. But the other potential use for indexed annuities is as a "delivery vehicle" for a withdrawal rider. … when an indexed annuity is used for income purposes through an withdrawal rider, all of the smoke and mirrors (non-guaranteed caps and participation rates, fees for the withdrawal rider itself, etc.) do not affect the amount of monthly income available through the withdrawal benefit. All that matters is how the withdrawal benefit rider works. This is such an important point, and it gets lost in the dogmatic bo...
by HENRYGRUGER
Wed Jun 14, 2023 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

Stinky: Great Response. Thanks again! I am very familiar with Stantheannuityman's site. Your observation that FIA with Income Riders have higher payouts is correct, based on a considerable number of comparisons I have made. The Death Benefit is another feature that is favorable when considering FIA vs. SPIAs or DIAs. Thank you for confirming that you’re considering an FIA as a “delivery vehicle” for obtaining a guaranteed monthly income; that is, as an alternative to a SPIA or a DIA. Indexed annuities receive well deserved criticism on this Forum when they are discussed in the context of an “accumulation” vehicle, in large part due to the lack of guarantees of renewal year caps and participation rates. But the monthly income provided by th...
by HENRYGRUGER
Wed Jun 14, 2023 12:26 am
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

The bogleheads problems with the indexed annuities are their complexity, opacity and cost. If you want an annuity product, you can get one without these limitations. On the other hand, my problem with even SPIAs is that they pay a nominal fixed income whose real value decreases each year with inflation. It may be technically true that it can be lifetime income but it is a lifetime of declining value. If one could buy inflation indexed annuities and they were not too expensive, then they could be a good retirement solution. Rumor has it that insurance companies found that too few people bought them, because of low payouts. Now they do not sell them at all. Alan... Is is true that with a SPIA without a COLA, the income would decrease over ti...
by HENRYGRUGER
Wed Jun 14, 2023 12:16 am
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

I have been looking closely at building an annuity strategy to accompany my SS benefits when I retire in January of 2024. What goal are you trying to achieve with FIAs that SPIAs cannot do? While OP has not weighed in since he started this thread, it's possible that he wanted to compare the monthly income available from a SPIA to the monthly income produced by an income rider attached to an indexed annuity. As an "accumulation vehicle", Bogleheads generally don't like indexed annuities. Poster afan summarized it well upthread: The bogleheads problems with the indexed annuities are their complexity, opacity and cost. But the other potential use for indexed annuities is as a "delivery vehicle" for a withdrawal rider. As I...
by HENRYGRUGER
Tue Jun 13, 2023 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Single Premium Immediate Annuities...SPIAs

I am curious as to whether or not there is a Thread on BHs where people have discussed using FIA or SPIAs to fund a guaranteed income in retirement, at least for "flooring Income" purposes. I have seen a number of threads with comments basically dismissing annuities as being unworthy of even rational discussion and those are not discussions I want to enter. I have been looking closely at building an annuity strategy to accompany my SS benefits when I retire in January of 2024. Has anyone else built annuity strategies? I like checking the deals at ImmediateAnnuity.com. The payouts appear sweet. SPIAs don't work for me because I lose control over say $250K forever. That gives me heartburn. If I was retiring early and I didn't have ...
by HENRYGRUGER
Tue Jun 13, 2023 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

I am curious as to whether or not there is a Thread on BHs where people have discussed using FIA or SPIAs to fund a guaranteed income in retirement, at least for "flooring Income" purposes. I have seen a number of threads with comments basically dismissing annuities as being unworthy of even rational discussion and those are not discussions I want to enter. I have been looking closely at building an annuity strategy to accompany my SS benefits when I retire in January of 2024. Has anyone else built annuity strategies? Have the comments in this thread been useful to you? After reading what folks have said, are you inclined to consider using FIAs, SPIAs, or another annuity product to help fund your retirement income? Stinky: Yes......
by HENRYGRUGER
Tue Jun 13, 2023 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Re: Fixed Indexed Annuities - Non Haters Thread

Here's a link to a column I did for Forbes a number of years ago that warns of some of the dangers of falling for sales pitches made by commissioned salespersons pushing Equity Indexed Annuities. The Truth About Equity-Indexed Annuities https://www.forbes.com/2010/08/10/truth-about-equity-indexed-annuities-personal-finance-bogleheads-view-lindauer.html?sh=6e55c3331257 Thanks Mel! After reading the article I wanted to add that when your article was published the status of FIA/EIAs was upon for debate by the SEC. FIA/EIA were eventually ruled to be insurance products, which they actually are, and always have been, and they remain so today. Your other points were well taken but you didn't address the income rider, other than by reference to a...
by HENRYGRUGER
Sat Jun 10, 2023 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuities - Non Haters Thread
Replies: 128
Views: 11301

Fixed Indexed Annuities - Non Haters Thread

I am curious as to whether or not there is a Thread on BHs where people have discussed using FIA or SPIAs to fund a guaranteed income in retirement, at least for "flooring Income" purposes.

I have seen a number of threads with comments basically dismissing annuities as being unworthy of even rational discussion and those are not discussions I want to enter.

I have been looking closely at building an annuity strategy to accompany my SS benefits when I retire in January of 2024.

Has anyone else built annuity strategies?
by HENRYGRUGER
Sat Jun 10, 2023 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Can you give examples where tax bracket will be higher in retirement then in 40's age?
Replies: 118
Views: 12753

Re: Can you give examples where tax bracket will be higher in retirement then in 40's age?

The TCJA will sunset 1-1-2026. Tax RATES will revert to tax rates of 2016 . . . That is an overstatement in my opinion, in January 2026 tax rates may or may not revert to the higher tax brackets of 2016. Nobody knows how Congress will act or not act at that time, to extend or not extend the tax changes of 2016. We get a new Congress every two years, so we don't even know who will be in Congress at that time. There are changes to tax law every Congress. I certainly don't know what changes there will be in the future, between now and the OP's retirement date. Rruralavalon... You are correct in that no one knows what Congress will do between now and 1-1-2026, but we do know what the current tax law states. I think you will agree, however, in ...
by HENRYGRUGER
Mon Jun 05, 2023 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Can you give examples where tax bracket will be higher in retirement then in 40's age?
Replies: 118
Views: 12753

Re: Can you give examples where tax bracket will be higher in retirement then in 40's age?

There are obviously many ways to look at this question. 1. Traditionally, people were told taxes would be lower when they retired. This was based on an assumption that they would be "earning" less and therefore be in a lower tax bracket. This is not true in many cases. 2. The TCJA will sunset 1-1-2026. Tax RATES will revert to tax rates of 2016. https://taxfoundation.org/historical-income-tax-rates-brackets/ [Political comments removed. Moderator Pops1860] How much more do you need? Factually speaking, we are paying the lowest taxes in decades. I was born in 1950. In 1950, 91%., the top tax rate in the US was 91%. It was only on income over $200,000. (@$2M in 2023 dollars.) [Political comments removed. Moderator Pops1860] The imp...
by HENRYGRUGER
Mon Jun 05, 2023 5:49 pm
Forum: Personal Investments
Topic: Vanguard advisors [Looking for advice about advisors]
Replies: 11
Views: 1471

Re: Vanguard advisors [Looking for advice about advisors]

It would be good to separate the uses of an advisor between planning and management. VPAS does planning in the sense of evaluating how well your plan fits your objectives, deciding what asset allocation to select, etc. VPAS does management in the sense of rebalancing, TLH, taking in contributions and paying out withdrawals, etc. One should be clear what the need is. VPAS is in no position to provide tax and estate legal advice and planning and other legal or financial concerns outside investments per se. DBR is 100% Correct. NO Tax advice other than basic asset location... NO Estate Planning assistance... NO Legal advice, obviously... You are paying 15 bp a year to be able to talk to a human and bounce ideas off of someone with NO COMMISSI...
by HENRYGRUGER
Mon Jun 05, 2023 5:45 pm
Forum: Personal Investments
Topic: Vanguard fees
Replies: 16
Views: 1312

Re: Vanguard fees

I am a PAS Client.

My fees for PAS (30 bp annually) are paid quarterly and are taken from my settlement account. I keep a few thousand it it all the time.
by HENRYGRUGER
Sat Jun 03, 2023 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need umbrella insurance?
Replies: 34
Views: 2665

Re: Do we need umbrella insurance?

[/quote] Eh, it's more important once the kids are driving. What's the liability coverage on your homeowners policy ? Conservative approach would be to up the auto and get $1M umbrella. The costs you quote seem nominal enough. The best reason to get it might be as shared above for the situation where an underinsured driver hits you plows and you suffer permanent injury. You can't work again. I'm not as alarmed as you are but it makes sense to purchase given the nominal cost. [/quote] ESPECIALLY IMPORTANT with Teenage Drivers. However, be careful not to confuse Liability coverage (Auto/Home/Umbrella) with Underinsured/Uninsured Motorist coverage. (UM/UM) If you are injured or suffer property damage from an uninsured or underinsured driver, y...
by HENRYGRUGER
Sat Jun 03, 2023 12:56 pm
Forum: Personal Investments
Topic: Vanguard advisors [Looking for advice about advisors]
Replies: 11
Views: 1471

Re: Vanguard advisors [Looking for advice about advisors]

DONZI wrote: Sat Jun 03, 2023 12:12 pm
HENRYGRUGER wrote: Sat Jun 03, 2023 11:58 am
halibut9 wrote: Fri Jun 02, 2023 7:06 pm I am looking for advise and your experience on using a Vanguard advisor.
..
5. Performs rebalancing and Tax Loss Harvesting (TLH not available through Vanguard Robo Advisor.)
The PAS/Robo advisory does offer TLH as an option (user can enable or not after PAS account created & funded) since at least since April 2023.
Donzi:

Perhaps I was unclear. PAS DOES provide TLH. The ROBO Advisor did not. Apparently the TLH service is now available through ROBO Advisor too.

Thank for the heads up.
by HENRYGRUGER
Sat Jun 03, 2023 11:58 am
Forum: Personal Investments
Topic: Vanguard advisors [Looking for advice about advisors]
Replies: 11
Views: 1471

Re: Vanguard advisors [Looking for advice about advisors]

I am looking for advise and your experience on using a Vanguard advisor. I opened my first account at Vanguard in 2013. In 2016 I signed up for PAS at 30 bp annually. My assigned advisor was a wonderfully educated and knowledgable young woman whose insights have served me well over the years. I was also able to be assigned as my sisters "authorized contact" and assist my sister in managing her Vanguard accounts, through the Website. My advisor recently went on extended health leave and I was assigned a new PAS advisor. While he is similarly educated, I haven't had the time to evaluate his abilities. Initial conversation have been positive. Pros of PAS: 1. Low cost 2. Your advisor is generally available, but not like calling your ...
by HENRYGRUGER
Fri Jun 02, 2023 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need umbrella insurance?
Replies: 34
Views: 2665

Re: Do we need umbrella insurance?

Our net worth has been gradually increasing over the years. My wife and I are trying to determine when, if ever, we need to get umbrella insurance. Any help or advice would be appreciated. Here is a synopsis of our current situation. Sorry for the long post, I just want to be as detailed as possible. Debt: No debt Tax Filing Status: Married Filing Jointly Tax Rate: 22% Federal, 4.8% State State of Residence: Utah Age: Him 42, her 38 Net worth: Taxable Emergency Fund: $25k in HYSA His and Her Brokerage: $33k Retirement Accounts His and her traditional IRAs: $220k His and her Roth IRAs: $375k His Pension: $45k cash value His 401k: $120k Property House: $700k, no mortgage Vehicles: 2 vehicles worth roughly $30k total Total net worth: $1.548 m...
by HENRYGRUGER
Fri Jun 02, 2023 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security is "Behind..."
Replies: 8
Views: 2512

Re: Social Security is "Behind..."

rainfallwinterberry wrote: Mon Apr 10, 2023 7:46 pm The formula only takes into account the 30 35 highest years of indexed earnings; maybe last year your earnings fell out of the top 3035?

Edit: I'm dumb it's 35, not 30
I doubt it, but I can''t be positive. I did the Math, using Social Security's own indexing numbers, and my 2022 earning would be in the "top 35."

When I retire in January, I will have reported earnings for 55 years!

Still nothing from SSA on my 2022 earnings increase.
by HENRYGRUGER
Mon Apr 10, 2023 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security is "Behind..."
Replies: 8
Views: 2512

Social Security is "Behind..."

For those of you still working after beginning your Social Security, and who are use to getting the small bump in benefits in March every year...you most likely have noticed that SSA has not gotten around to it this year. For the past three years I have received a bump in benefits because of my earnings have being reported to SSA, causing them to adjust my PIA, which in turn results my benefit payment being increased. It does the same for my spouse, as she is collecting spousal benefits. In the past three years, this increase has hit my bank account @ March 15th. This year...NADA...ZILCH. I called SSA and after waiting for 57 minutes on hold, enduring their incessant repeating announcement, I spoke with a surly female, whose lack of concern...
by HENRYGRUGER
Tue Mar 21, 2023 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Finance Book Summaries
Replies: 5
Views: 1096

Re: Personal Finance Book Summaries

Nice Post Captain...

Dave Ramsey & Susie Ormond would 't be on my reading list, so good to see what they are preaching these days.
by HENRYGRUGER
Tue Mar 21, 2023 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Can I Retire?
Replies: 36
Views: 5209

Re: Can I Retire?

I'm 65, wife is 63. No debt. medium/high COL. Small home $275K. $2.2M in IRAs/401k/Annuity. No kids or dependents. Expenses running about $60K per year. 58% VOO-VTI 36% CDs 6% TIAA annuity Home needs upgrade to both BRs, kitchen and 2 bedrooms. I can do most of the work myself for about $50K. Hate the town I live in so really would like move. Wife retired now, I'm still working but ready to go. Medical thru state so costs are reimbursed. Not counting on S/S for this calculations. Can you retire? Mathematically...most likely. Should you? Not enough info. Some considerations: 1. Health Insurance - Med Sup? Medicare Parts B & D? 2. Relocation Costs? You say you hate your location. WHY would you want to retire there then? 3. What retiremen...
by HENRYGRUGER
Mon Mar 06, 2023 3:41 pm
Forum: Personal Investments
Topic: $2.5 million windfall at age 22... seeking advice
Replies: 140
Views: 23120

Re: $2.5 million windfall at age 22... seeking advice

Hello bogleheads, I am 22 years old and very recently received a $2.5 million dollar windfall due to the death of someone I love in my family. Not taxable based on my research and the circumstances (meeting with someone this week to verify this). I know there was a similar post here a few years ago (https://www.bogleheads.org/forum/viewtopic.php?t=301519) but I decided to make a new one since my situation is a bit different About me -Currently no stable income as I am finishing up my Masters this spring. Have a bachelors degree. $20k in student loans -$500 a month rent, paying using savings from previous internships -Plan on getting a permanent job in my field that pays $55-60,000 this summer -No credit card debt, good credit score -Planni...
by HENRYGRUGER
Mon Mar 06, 2023 3:02 pm
Forum: Personal Investments
Topic: Help me advise my wife regarding windfall
Replies: 81
Views: 9218

Re: Help me advise my wife regarding windfall

Additional information: We got started with retirement accounts relatively late, but we both have well-funded and state-guaranteed pensions with COLA's. Additionally, we will both have Social Security, her starting anytime now and I will wait to age 70 per the Open Social Security calculator. All monthly expenses are met through our pensions and part-time work including $1500 each month that is split between our savings and vacation accounts. We each have term insurance that will more than handle the remaining mortgage debt and funeral expenses. We each also have LTC insurance providing about $350 coverage per day. Question: She and I have different perspectives on what to do with $300,000. She is comfortable with it in a savings account ea...
by HENRYGRUGER
Tue Feb 14, 2023 7:52 pm
Forum: Personal Investments
Topic: Dimensional Funds
Replies: 15
Views: 2749

Re: Dimensional Funds

[/quote]

Question: "Biggest turnoff for me has been many of their e/r's vs. their competition for asset classes I'm interested in."

e/r's...?
[/quote]

e/r = expense ratio
They often have higher expenses than other providers. Not always, but often. Historically, for some of their funds, the higher returns have more than offset their expenses vs. their peers. Sometimes not. And as always, nothing is guaranteed in the future...

Cheers
[/quote]

HA! Sometimes it's just the terminology used.

thanks.
by HENRYGRUGER
Tue Feb 07, 2023 5:26 pm
Forum: Personal Investments
Topic: Dimensional Funds
Replies: 15
Views: 2749

Re: Dimensional Funds

i looked into the data too. unlikely that DFA can beat simple index funds over a long period of time. If you want to hold them, i would limit to 10% of total portfolio. basically they are small cap value with some intricacies. you can buy AVANTIS etfs similar too df. I'd say unknowable, rather than unlikely. DFA provides a large number of funds, not just small cap value and that also includes bond funds, target date funds, fixed allocation funds, etc. Recently some of the same mutual funds, which are only accessible via an advisor, have been made available in ETF form for the masses. I own no DFA mutual funds or ETFs. Biggest turnoff for me has been many of their e/r's vs. their competition for asset classes I'm interested in. I do wish th...