Search found 10625 matches

by The Wizard
Thu Sep 21, 2017 5:10 pm
Forum: Personal Consumer Issues
Topic: Name something you had to have and now you regret purchasing it?
Replies: 275
Views: 22675

Re: Name something you had to have and now you regret purchasing it?

pechy2925 wrote:
Thu Sep 21, 2017 4:09 pm
My 55" Sony 4k TV...used it for a few months. Now it just sits there
You should see if you can find the Power On switch, possibly on the remote somewhere...
:)
by The Wizard
Thu Sep 21, 2017 4:55 pm
Forum: Investing - Theory, News & General
Topic: Retirees, what is your marginal tax rate?
Replies: 39
Views: 3941

Re: Retirees, what is your marginal tax rate?

I'm curious what people are seeing in their total fed tax rate and some of the parameters around that. We pay about 30-33% total fed/state taxes right now with ~$500K household income. I have to believe it will be substantially lower in retirement when drawing $100K or so in living costs with a 7 f...
by The Wizard
Thu Sep 21, 2017 9:28 am
Forum: Personal Finance (Not Investing)
Topic: RMD Dates
Replies: 9
Views: 698

Re: RMD Dates

Non-CPA here. I am a month older than you. Your plan is consistent with my understanding of the RMD requirements. I also asked my CPA if my RMD would trigger the AMT...a point to consider. I only got into AMT once, due to a real estate transaction. So my question: what is the simplest way to know w...
by The Wizard
Thu Sep 21, 2017 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 23
Views: 1440

Re: Roth Conversions and taxes

Wizard - Have you tried the RPM spreadsheet/calculator that was developed by a member on this board? It lays all of that out for you as well as dozens of other outputs and also offers the ability to set a base case and make comparisons quickly yielding not only the results of the comparison but hav...
by The Wizard
Thu Sep 21, 2017 6:45 am
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 164
Views: 11859

Re: I won the Lottery. Need sound advice.

bottlecap wrote:
Thu Sep 21, 2017 6:35 am
I would take $20k to spend now...
Why?
OP and wife already spend too much as indicated by the unpaid CC debt.
They need to take that $20k and pay down debt...
by The Wizard
Thu Sep 21, 2017 6:42 am
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 164
Views: 11859

Re: I won the Lottery. Need sound advice.

I'm not going to comment on Edward Jones, specifically, but you do need a financial advisor. As others have stated, your family has been living beyond its means, with bad debt and little preparation for the future. Assuming your post is true, the first thing you need to do is step back and really e...
by The Wizard
Thu Sep 21, 2017 5:48 am
Forum: Personal Finance (Not Investing)
Topic: RMD Dates
Replies: 9
Views: 698

Re: RMD Dates

Non-CPA here. I am a month older than you. Your plan is consistent with my understanding of the RMD requirements. I also asked my CPA if my RMD would trigger the AMT...a point to consider. I only got into AMT once, due to a real estate transaction. So my question: what is the simplest way to know w...
by The Wizard
Thu Sep 21, 2017 5:45 am
Forum: Personal Finance (Not Investing)
Topic: RMD Dates
Replies: 9
Views: 698

Re: RMD Dates

I will turn 70 in Oct of 2017 and 70 1/2 in April of 2018. My understanding is that I must take a RMD by April 1 of 2019 and another by Dec. 31 2019. In order to minimize the tax bite, I'll take a distribution in Dec of 2018 and each calendar year thereafter. Am I missing anything? Don't want to ge...
by The Wizard
Wed Sep 20, 2017 9:05 pm
Forum: Personal Consumer Issues
Topic: USPS lost very important certified mail - What next?
Replies: 46
Views: 4601

Re: USPS lost very important certified mail - What next?

I've found that higher-cost mailing services like certified mail and registered mail are more trouble then they are worth. They tend to slow down and/or delay delivery because of the extra steps usually involved. Just sending something first class in a plain envelope seems to work every time. Why m...
by The Wizard
Wed Sep 20, 2017 7:37 pm
Forum: Local Chapters and Bogleheads Community
Topic: DC Bogleheads Meeting in Ballston with Sita Slavov
Replies: 22
Views: 1475

Re: DC Bogleheads Meeting in Ballston with Sita Slavov

Wizard, why do you doubt the above result? No one is saying saving more of your income is a bad idea. What is being said is additional saving compared to postponing retirement is more advantageous when interest rates are higher. That doesn't make saving more bad, but simply relatively more advantag...
by The Wizard
Wed Sep 20, 2017 5:43 pm
Forum: Local Chapters and Bogleheads Community
Topic: DC Bogleheads Meeting in Ballston with Sita Slavov
Replies: 22
Views: 1475

Re: DC Bogleheads Meeting in Ballston with Sita Slavov

You want to increase your level of retirement assets at retirement in several years. You could a) Increase your savings rate b) Postpone retirement The higher the interest rate the more benefit you get from increasing your savings rate. Postponing retirement is much less affected by the level of in...
by The Wizard
Wed Sep 20, 2017 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 23
Views: 1440

Re: Roth Conversions and taxes

The OP is a good candidate for creating a home grown spreadsheet projecting annual AGI or Taxable Income for each year from now to age 70. Then do Roth conversions each year to level your AGI to a degree, perhaps allowing 3% to 5% growth in AGI each year. Goal is to keep the age 70 jump in AGI modes...
by The Wizard
Wed Sep 20, 2017 4:12 pm
Forum: Local Chapters and Bogleheads Community
Topic: DC Bogleheads Meeting in Ballston with Sita Slavov
Replies: 22
Views: 1475

Re: DC Bogleheads Meeting in Ballston with Sita Slavov

One thing I learned from Sita Slavov's presentation, which is rather important, is that when interest rates are low, as they have been for the last several years, postponing retirement becomes an increasingly more potent retirement financial tool relative to increasing your pre-retirement savings r...
by The Wizard
Tue Sep 19, 2017 6:10 pm
Forum: Personal Consumer Issues
Topic: Convertible in Florida or not...
Replies: 36
Views: 2036

Re: Convertible in Florida or not...

Late to the thread. I bought my first covertible, a Chrysler LeBaron, in 1993 as a direct result of renting one on several occasions. That model was NOT well made mechanically. I now have a Mustang convertible with 100,000 miles on it. I never lock that car and I leave the top down when I'm out and ...
by The Wizard
Tue Sep 19, 2017 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard: Your Investing Life™: Managing your money after divorce.
Replies: 2
Views: 367

Re: Vanguard: Your Investing Life™: Managing your money after divorce.

should say managing half your money. I'm not sure that's right. A common mistake might assuming that your spouse's half of joint financial assets somehow belong to you. They don't. In either case, investing after divorce is arguably simpler than when married, assuming you have a decent plan similar...
by The Wizard
Mon Sep 18, 2017 11:25 am
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 56
Views: 3824

Re: What is the main purpose of rebalancing?

As some others have mentioned, rebalancing can be thought of as taking incremental profits or doing the buy low/sell high thing.
That frame of mind makes it easier to do.

But yes, it's controlling risk as well...
by The Wizard
Mon Sep 18, 2017 9:20 am
Forum: Investing - Help with Personal Investments
Topic: TIAA (GSRA) Traditional
Replies: 9
Views: 895

Re: TIAA (GSRA) Traditional

3. Is it possible to roll this account into an account from a future employer? This is a 403B, if I took another job with a 401K could I choose to roll this one into it? I'm not saying this is a good idea, only asking. I don't think one can transfer money into it from a future employer but you can ...
by The Wizard
Mon Sep 18, 2017 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13152

Re: Let's talk about your FI # and family income

Admiral wrote:
Mon Sep 18, 2017 8:27 am

The 4% SWR (which in my view stands for "suggested safe withdrawal rate") ...
It might even mean Sustainable Withdrawal Rate...
by The Wizard
Sun Sep 17, 2017 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Is this TIAA TRAD 3% or 2.5%?
Replies: 17
Views: 1106

Re: Is this TIAA TRAD 3% or 2.5%?

I have the unrestricted Traditional with 3% guarantee in both my 403b ... -do- and my Traditional in my Defined Contribution plan is even better...but has that nasty 10 year withdrawal plan - but will I annuitize it?? Yes, I believe you probably will. I've annuitized a goodly amount of TIAA assets ...
by The Wizard
Sun Sep 17, 2017 9:22 am
Forum: Investing - Theory, News & General
Topic: 401k's are for sheeple! According to some guy.
Replies: 19
Views: 2338

Re: 401k's are for sheeple! According to some guy.

...Wealthy people live in a bubble. They don't realize how lucky they are to be wealthy and generally completely downplay how difficult/unlikely it was for them to succeed. There are plenty of extremely bright, extremely hardworking people who never become runaway successes... Depends on what you m...
by The Wizard
Sun Sep 17, 2017 9:18 am
Forum: Investing - Theory, News & General
Topic: 401k's are for sheeple! According to some guy.
Replies: 19
Views: 2338

Re: 401k's are for sheeple! According to some guy.

VictoriaF wrote:
Sat Sep 16, 2017 9:46 pm
bcjb wrote:
Sat Sep 16, 2017 9:39 pm
This gentleman is... interesting, for sure. He's selling $25,000 tickets to go hang out with him on St Bart's in October.
Are the people buying $25k St Bart's tickets the "sheeple"?

Victoria
I suspect those folks are the ANTI-sheeple...
by The Wizard
Sun Sep 17, 2017 8:48 am
Forum: Investing - Theory, News & General
Topic: 401k's are for sheeple! According to some guy.
Replies: 19
Views: 2338

Re: 401k's are for sheeple! According to some guy.

bcjb wrote:
Sat Sep 16, 2017 9:40 pm
PS the Boglehead conference seems slightly better value :D
Yes, but that conference is sold out.
The one on St. Bart's is likely still available...
by The Wizard
Sun Sep 17, 2017 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Psychological effects of Early Retirement in peak earning years.
Replies: 63
Views: 6718

Re: Physiological effects of Early Retirement in peak earning years.

The answer for some people may depend on how easily you can transition to part-time employment while still pursuing at least some of your recreational activities at a higher level. I have found that working part-time 15-20 hours per week provides an interesting diversion in retirement. This option w...
by The Wizard
Sun Sep 17, 2017 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13152

Re: Let's talk about your FI # and family income

I think a pension will make a big difference. I think you are right. According to some sources, 40% of Bomer couples will have an employer-funded defined benefit pension. Almost all will have SS pensions. For my retired household, those two income sources account for almost all our non-discretionar...
by The Wizard
Fri Sep 15, 2017 6:22 pm
Forum: Personal Consumer Issues
Topic: Any Ford Escape drivers in Boglehead-land?
Replies: 22
Views: 2119

Re: Any Ford Escape drivers in Boglehead-land?

DrGoogle2017 wrote:
Fri Sep 15, 2017 4:51 pm
When I last look at SUVs, Ford Escapes did not have the same reliability as Ford Explorers, so I bought the Ford Explorer instead.
Ford has a good range of SUVs. Most folks can find one that fits, especially if money isn't a big factor...
by The Wizard
Fri Sep 15, 2017 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13152

Re: Let's talk about your FI # and family income

Or not. I smile when a Boglehead assumes that being a Boglehead means having low expenses or frugality. I'm a Boglehead, but my annual expenses are not low. And I'm not frugal. I don't think that's the presumption here. It's more that you are living within your means and saving a decent amount, usu...
by The Wizard
Fri Sep 15, 2017 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13152

Re: Let's talk about your FI # and family income

Never understand why people even look at household income. If I am unemployed and win the lottery, I think it does matter whether my lottery winnings are $1,000 or $10,000,000 But either way, I have won an infinite multiple of my income... In all honesty, most people have difficulty dealing with an...
by The Wizard
Fri Sep 15, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13152

Re: Let's talk about your FI # and family income

This is a touchy topic since many don't like revealing personal numbers. Nonetheless, retired 4.5 years at age 67, my AGI, filing single, is in the $130k to $160k range, depending on how much, if any, part-time work I do each year. It was toward the upper end in 2016. I may start part-time again nex...
by The Wizard
Fri Sep 15, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

PatrickA5 wrote:
Fri Sep 15, 2017 10:55 am

If I use 10x Income, I only need $50K savings! I like it! (Only made $5K last year)

If I use 25x Expenses, I need around $2 million.
Right.
And if one was unemployed for a calendar year, the 10x number might not be so good either.
Hence the need for thinking rationally...
by The Wizard
Fri Sep 15, 2017 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

How do you treat the purchase and sale of securities? If I invest $15,000, would you subtract the $15,000 as savings? If sell $30,000 of securities for a $15,000 gain, do I treat the $15,000 gain as income? What is the "contribution number" ? Is that the amount the amount put into the 401(k) and IR...
by The Wizard
Fri Sep 15, 2017 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

I think rules of thumb are very useful if you realize that they really are just rules of thumb. And I think it is foolish to try to refine the precision of any rule of thumb... Excellent observation. Let's do a round number example and see what we have. Fred is 60 and earns $100k, up from $98k last...
by The Wizard
Fri Sep 15, 2017 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

Perhaps income is used as a guide rather than expenses when estimating retirement savings goals because expense calculations can be elusive, even in the near future. Itster, I disagreed. It is very easy to calculate your current annual expense. Your current annual expense = gross income - tax (Fede...
by The Wizard
Fri Sep 15, 2017 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

Perhaps income is used as a guide rather than expenses when estimating retirement savings goals because expense calculations can be elusive... This statement is incredibly true. My GF paid $450 for lawn tractor repair this week and is still not sure what to do about the busted hard drive in her lap...
by The Wizard
Fri Sep 15, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

I think rules of thumb are very useful if you realize that they really are just rules of thumb. And I think it is foolish to try to refine the precision of any rule of thumb... Excellent observation. Let's do a round number example and see what we have. Fred is 60 and earns $100k, up from $98k last...
by The Wizard
Fri Sep 15, 2017 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

Savings rules of thumb based upon income levels seem so silly. Example: I have just about enough to retire, and received a $50,000 raise. Oh my goodness, now I need an additional $500,000 based on my income and will have to work another 10 years.... Example: I receive a 3-5% raise every year. I can...
by The Wizard
Fri Sep 15, 2017 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

I think it's absolutely fine for everyone to target 10 times your current annual income for retirement savings. It's a good starting point. Once you achieve that goal, you can start transitioning your thinking to what really matters: how to achieve your Desired Retirement Income with some combinati...
by The Wizard
Fri Sep 15, 2017 6:01 am
Forum: Personal Consumer Issues
Topic: Any Ford Escape drivers in Boglehead-land?
Replies: 22
Views: 2119

Re: Any Ford Escape drivers in Boglehead-land?

My GF has a 2013 Escape which serves her well. Rear cargo area is fine most of the time and can fold back seats if more space needed. It might be too small if additional people in back seat most of the time. She regrets having a less expensive model without backup camera, but 2017 and later model ye...
by The Wizard
Fri Sep 15, 2017 5:54 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

Its all about expenses. Bogleheads has a lot of posts from people about maximizing tax-deferred savings, and it also has a lot of posts from people discussing how to minimize the amount of tax-deferred savings they have to withdraw. Saving 25 times your salary makes sense if (1) your savings will b...
by The Wizard
Fri Sep 15, 2017 5:50 am
Forum: Personal Finance (Not Investing)
Topic: Have X times your salary saved by age Y.
Replies: 60
Views: 5900

Re: Have X times your salary saved by age Y.

I think it's absolutely fine for everyone to target 10 times your current annual income for retirement savings. It's a good starting point. Once you achieve that goal, you can start transitioning your thinking to what really matters: how to achieve your Desired Retirement Income with some combinatio...
by The Wizard
Fri Sep 15, 2017 5:42 am
Forum: Investing - Help with Personal Investments
Topic: Retirees-anyone miscalculate how much was needed?
Replies: 71
Views: 8616

Re: Retirees-anyone miscalculate how much was needed?

We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA. Other than that notable exception, our expenses are what we expected. No obamacare? Medicare? That IS Obamacare. My G...
by The Wizard
Thu Sep 14, 2017 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Reasonable to adjust 401k allocation if you have a pension?
Replies: 20
Views: 1953

Re: Reasonable to adjust 401k allocation if you have a pension?

You want to be thinking primarily in terms of Income in retirement, not assets. Let's say your desired income in retirement is $70,000+. But then your actual income from pensions, annuities and SS turns out to be $90,000. This means your portfolio at that point is a luxury slush fund and you can inv...
by The Wizard
Thu Sep 14, 2017 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: "Get Ready! Medicare Will Mail New Cards to 60 Million People"
Replies: 5
Views: 900

Re: "Get Ready! Medicare Will Mail New Cards to 60 Million People"

bob60014 wrote:
Thu Sep 14, 2017 8:15 pm
In this day and age, we need a card? Geeeessshhh.
Yes.
I show my cards at each appointment.

Now a SS card, no.
I've not had mine for like a hundred years...
by The Wizard
Thu Sep 14, 2017 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees-anyone miscalculate how much was needed?
Replies: 71
Views: 8616

Re: Retirees-anyone miscalculate how much was needed?

We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA. Other than that notable exception, our expenses are what we expected. No obamacare? Medicare? That IS Obamacare. My G...
by The Wizard
Thu Sep 14, 2017 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3279

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

Ah, I see. So, because over the long-term stocks will likely (but certainly not certainly!) outperform bonds, you really have a 54% stock allocation with a 1% upper band and a 9% lower band. Rebalancing means you reallocate back to, you know, balance , i.e. your desired AA. That's an interesting wa...
by The Wizard
Thu Sep 14, 2017 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3279

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

Not sure why you suggest this as a particularly good strategy compared to the well-backtested 5/25 rule; is it just because it's what a lot of people do? If you believe in momentum then having such tight bands may in fact ding returns compared to the trip points set by the wider bands of a 5/25 (5%...
by The Wizard
Thu Sep 14, 2017 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1178

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

OK, so use direct pay, but pay more tax in the first three to six months of the year than the last six months.

Where you're likely to get into trouble is doing a large Roth conversion on December 15th and a single direct pay transaction a few days later without the explanatory additional form...
by The Wizard
Thu Sep 14, 2017 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1178

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

Modify your withholding for a pay period or two instead. I could do that online with my former employer and specify an additional $1000, which would cover a $4000 Roth conversion in the 25% bracket. But most people feel it unwise to Roth convert on top.of full time employment. So maybe your regular ...
by The Wizard
Thu Sep 14, 2017 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else freeze their credit score?
Replies: 126
Views: 10719

Re: Anyone else freeze their credit score?

need403bhelp wrote:
Wed Sep 13, 2017 5:50 pm

A thief just needs to cut off my finger to unlock with a fingerprint.
But which finger?
That is the ten dollar question...
by The Wizard
Thu Sep 14, 2017 7:12 am
Forum: Investing - Theory, News & General
Topic: What's likely to happen to stocks if/when interest rates rise?
Replies: 22
Views: 1341

Re: What's likely to happen to stocks if/when interest rates rise?

Answer depends on inflation rate as well. If savings accounts were paying 5% today with inflation as it is, then lots of $$ would exit stocks and bring prices down. But that's not how it works. Inflation tends to increase along with interest rates... thanks. so this means that if rates increase wit...
by The Wizard
Thu Sep 14, 2017 6:25 am
Forum: Investing - Theory, News & General
Topic: What's likely to happen to stocks if/when interest rates rise?
Replies: 22
Views: 1341

Re: What's likely to happen to stocks if/when interest rates rise?

Answer depends on inflation rate as well.
If savings accounts were paying 5% today with inflation as it is, then lots of $$ would exit stocks and bring prices down.

But that's not how it works. Inflation tends to increase along with interest rates...