Search found 10835 matches

by The Wizard
Mon Nov 20, 2017 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: What percentage of your annual expenditures are you targeting for travel once you are retired?
Replies: 13
Views: 692

Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

I'd have to add up the numbers to get the answer and I'm not inclined to do that. But I'm guessing I spend around $3000 a month on discretionary travel on average. This is obviously a combination of expenses for future travel such as plane tickets along with charges for travel just completed such as...
by The Wizard
Mon Nov 20, 2017 10:28 am
Forum: Personal Consumer Issues
Topic: New car buyers...you should consider financing
Replies: 17
Views: 860

Re: New car buyers...you should consider financing

I've never done car financing through a dealer and I'm not starting now...
by The Wizard
Mon Nov 20, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Planning for the final months of work
Replies: 29
Views: 1902

Re: Planning for the final months of work

nick2302 wrote:
Mon Nov 20, 2017 9:20 am
One other factoid I failed to mention about Fidelity is they no longer sell that fund it went the way of the DODO bird...
Go ahead and tell us the name of that Fidelity fund.

And when did this loss occur? During 2008 perhaps?
by The Wizard
Mon Nov 20, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey says don't use credit cards, even if you pay them off
Replies: 156
Views: 8181

Re: Dave Ramsey says don't use credit cards, even if you pay them off

I think it's fine if Dave Ramsey has no credit cards...
by The Wizard
Sat Nov 18, 2017 5:56 am
Forum: Personal Finance (Not Investing)
Topic: Take Pension or Lump Sum payout?
Replies: 12
Views: 1064

Re: Take Pension or Lump Sum payout?

To generate 72 k a year you would need to have 1.8 million dollars. 900k would generate only 36 k a year. (This is based on the 4 per cent safe withdrawal rate) So if you took the pension, and the pension was cut by half, you would still be doing as well as if you took the lump sum. That being said...
by The Wizard
Sun Nov 12, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: How do you project the amount you will have to spend annually in retirement?
Replies: 76
Views: 4144

Re: How do you project the amount of income you will have in retirement?

Not missing anything. It just seems an odd statement as there is only one check. However the spouse will get SS as a survivor which would presumably be the larger of the two checks previously received. The point, however, is that people do have to anticipate how much trouble the survivor might be i...
by The Wizard
Sun Nov 12, 2017 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: How do you project the amount you will have to spend annually in retirement?
Replies: 76
Views: 4144

Re: How do you project the amount of income you will have in retirement?

How about if I restate the question like this? How do you project the amount you will have to spend annually in retirement? This is a totally different, yet ambiguous, question. People will interpret the verb HAVE differently. 1) How much am I REQUIRED to spend annually to maintain my basic lifesty...
by The Wizard
Sun Nov 12, 2017 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: How do you project the amount you will have to spend annually in retirement?
Replies: 76
Views: 4144

Re: How do you project the amount you will have to spend annually in retirement?

I project my retirement income using a custom spreadsheet that I may have explained a bit in previous threads. Because the bulk of my pre retirement accounts are tax deferred, most of my retirement income will be taxable. Therefore, I find it sufficient to just project my AGI for each calendar year ...
by The Wizard
Sun Nov 12, 2017 10:51 am
Forum: Investing - Theory, News & General
Topic: Fidelity 10X Retirement Rule - - Valid???
Replies: 46
Views: 2957

Re: Fidelity 10X Retirement Rule - - Valid???

I'm pretty sure he didn't make this rule of thumb for bogleheads and White Coat investers. This is for the general public. I hate to pop your bubble but the investing world doesn't revolve around Bogleheads and Whitecoat investors. Correct. I think 10x salary is a decent starting point for most fol...
by The Wizard
Sun Nov 12, 2017 7:33 am
Forum: Investing - Theory, News & General
Topic: Fidelity 10X Retirement Rule - - Valid???
Replies: 46
Views: 2957

Re: Fidelity 10X Retirement Rule - - Valid???

Higher income families who rely on this rule of thumb are going to be very disappointed. It might work fine for families who live on $50,000 a year and social security replaces a good portion of that, but it doesn't work at all if you are expecting to live on $150,000 a year. In that case, the mult...
by The Wizard
Sun Nov 12, 2017 4:58 am
Forum: Investing - Theory, News & General
Topic: Fidelity 10X Retirement Rule - - Valid???
Replies: 46
Views: 2957

Re: Fidelity 10X Retirement Rule - - Valid???

I'm pretty sure he didn't make this rule of thumb for bogleheads and White Coat investers. This is for the general public. I hate to pop your bubble but the investing world doesn't revolve around Bogleheads and Whitecoat investors. Correct. I think 10x salary is a decent starting point for most fol...
by The Wizard
Sun Nov 12, 2017 4:49 am
Forum: Investing - Theory, News & General
Topic: Fidelity 10X Retirement Rule - - Valid???
Replies: 46
Views: 2957

Re: Fidelity 10X Retirement Rule - - Valid???

I had more like 12 or 13 times salary put away in tax deferred by the time I retired at age 63. My focus was more on a Desired Income level in retirement, not expenses. I targeted an income level a bit higher than my net income when employed. Having an income which exceeds my expenses by a decent am...
by The Wizard
Sun Nov 12, 2017 3:16 am
Forum: Investing - Theory, News & General
Topic: Retirees: I got this!!
Replies: 82
Views: 9598

Re: Retirees: I got this!!

I actually HAVE been spending considerably more on travel in retirement with all the free time available. Managing finances for this has been interesting, with the the combination of payments for future travel (plane tickets and some group trips) along with payment for travel just completed (CC bill...
by The Wizard
Sat Nov 11, 2017 7:16 pm
Forum: Investing - Theory, News & General
Topic: Retirees: I got this!!
Replies: 82
Views: 9598

Re: Retirees: I got this!!

Open the spigot, eh? So I should fly business class to Madrid in March just because I can? Hmmm, I'm not sure about that. There's a certain attention to expenses, not frugalness exactly, but attention that remains in retirement. I have a dive trip to Bonaire in late April to focus on and then a HS r...
by The Wizard
Sat Nov 11, 2017 9:23 am
Forum: Investing - Theory, News & General
Topic: Retirees: I got this!!
Replies: 82
Views: 9598

Re: Retirees: I got this!!

I retired March 2013 with a seven year gap to span before SS at age 70. So a bad sequence of returns could have forced a plan B change.

But markets have done well, so things are well in hand financially now. This realization became gradually evident over the last year or two...
by The Wizard
Sat Nov 11, 2017 9:12 am
Forum: Personal Consumer Issues
Topic: what pickup truck
Replies: 65
Views: 4808

Re: what pickup truck

I upgraded from an old Ford Ranger to a larger 2016 F-150 Lariat Supercab 4x4 two years ago. It's great especially if you haul lots of stuff. I got the 3.5 litre Ecoboost and it goes really fast. For some of us, once you've had a pickup truck for a while, it's hard to imagine a decent life without ...
by The Wizard
Sat Nov 11, 2017 8:50 am
Forum: Investing - Theory, News & General
Topic: The average American retiree household
Replies: 57
Views: 10718

Re: The average American retiree household

http://www.businessinsider.com/heres-the-average-net-worth-of-americans-at-every-age-2017-6 What is the upper boundary (in percentile terms) of the fifth quintile? It can't be 100% (on those charts). Surely there are married couples age 65+ with a net worth greater than $2,200,000. Right. The x axi...
by The Wizard
Sat Nov 11, 2017 8:35 am
Forum: Investing - Theory, News & General
Topic: What do people mean when they say their SWR is X% or they have X times expenses?
Replies: 27
Views: 2067

Re: What do people mean when they say their SWR is X% or they have X times expenses?

I do not understand the above answers to the question. The "S" in "SWR" means "Safe." The SAFE withdrawal rate does not depend on the NEEDED withdrawal rate, which most of the above answers seem to be talking about. Safety depends on how that money is invested (stocks, bonds, tulip bulbs?) and assu...
by The Wizard
Sat Nov 11, 2017 4:43 am
Forum: Investing - Theory, News & General
Topic: What do people mean when they say their SWR is X% or they have X times expenses?
Replies: 27
Views: 2067

Re: What do people mean when they say their SWR is X% or they have X times expenses?

The answer to the OP's question varies considerably person to person, which is why an individualized cash flow plan is needed. I retired at 63 with decent annuity income to cover my expenses. I started Divorced Spouse SS benefits at 66 which covers all Healthcare expense with some leftover. I've bee...
by The Wizard
Fri Nov 10, 2017 8:55 am
Forum: Personal Consumer Issues
Topic: what pickup truck
Replies: 65
Views: 4808

Re: what pickup truck

I upgraded from an old Ford Ranger to a larger 2016 F-150 Lariat Supercab 4x4 two years ago. It's great especially if you haul lots of stuff. I got the 3.5 litre Ecoboost and it goes really fast. For some of us, once you've had a pickup truck for a while, it's hard to imagine a decent life without o...
by The Wizard
Fri Nov 10, 2017 8:44 am
Forum: Investing - Theory, News & General
Topic: The fear of retirement, black swan, and math to dissuade the fear.
Replies: 136
Views: 12580

Re: The fear of retirement, black swan, and math to dissuade the fear.

Getting back to reality and ignoring most Black swan and catastrophic events, the main problem with living on $80k derived from a $2M portfolio is that other income streams are missing. It would be better to have $60k per year income from pensions/annuities + SS and just a $1M portfolio. That portfo...
by The Wizard
Wed Nov 08, 2017 7:31 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Slaughtering The High Dividend Sacred Cow
Replies: 192
Views: 12965

Re: Larry Swedroe: Slaughtering The High Dividend Sacred Cow

White Coat Investor wrote:
Mon Nov 06, 2017 10:19 pm
I agree with Larry on the dividend issue. But what are you going to do? Lots of people have an almost religious belief in them.
Eat your eggs, not your chickens, yes...
by The Wizard
Wed Nov 08, 2017 8:37 am
Forum: Investing - Help with Personal Investments
Topic: Annuity for winning the game
Replies: 39
Views: 3419

Re: Annuity for winning the game

I think the prevailing view is to wait for age 70 or older to annuitize, and to hope for a higher interest rate environment. I understand the desire, and I would not be surprised if DW and I decide to annuitize a portion of our portfolio in the coming years. Well, the longer you wait to annuitize, ...
by The Wizard
Wed Nov 08, 2017 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Annuity for winning the game
Replies: 39
Views: 3419

Re: Annuity for winning the game

I annuitized way more than 12% of my tax deferred accounts for lifetime income at start of retirement at age 63. These were immediate annuities that started paying me income the beginning of the next month. I'm much less dependent on my remaining portfolio now and it's fun having a decently large pa...
by The Wizard
Wed Nov 08, 2017 7:35 am
Forum: Investing - Theory, News & General
Topic: The average American retiree household
Replies: 57
Views: 10718

Re: The average American retiree household

I don't see why discussing the average retirement income is particularly meaningful here.
Most of us have been working at it and are way above average here...
by The Wizard
Mon Nov 06, 2017 8:30 pm
Forum: Personal Consumer Issues
Topic: Climate controlled cars - Useful or Useless?
Replies: 49
Views: 2101

Re: Climate controlled cars - Useful or Useless?

My 2016 F-150 has auto climate control and I love it. You need the automatic digital system for optimal warmup or cooldown using remote start. I only do remote warmup in winter and infrequently, but it's nice. The heated and cooled seats and the heated steering wheel are part of the remote start fea...
by The Wizard
Thu Nov 02, 2017 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: WR calculation [Withdrawal Rate]
Replies: 40
Views: 2511

Re: WR calculation [Withdrawal Rate]

Regarding income taxes, I have a spreadsheet one column per year from age 63 (start of retirement) to around age 75, showing my projected AGI for each year. Different retirement cashflows start and end at different times. Divorced Spouse SS from 66 to 70, then full personal SS, for instance. Withdra...
by The Wizard
Thu Nov 02, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Does Retirement Make You Lazier?
Replies: 87
Views: 7573

Re: Does Retirement Make You Lazier?

My retirement days vary considerably.
On a fair weather sunny day, I might do a bike ride for a few hours.
And I spend more time cutting logs nowadays than when working full-time.
But on average, I think I'm more lazy now. It's a good life...
by The Wizard
Thu Nov 02, 2017 9:51 am
Forum: Personal Consumer Issues
Topic: Spam calls to cell phone...
Replies: 87
Views: 6129

Re: Spam calls to cell phone...

My spam blocker software usually picks up on these. But if I'm fast, I sometimes answer the incoming call first and play an old FedEx commercial for them.
Spam for the spammers...
by The Wizard
Thu Nov 02, 2017 9:46 am
Forum: Personal Consumer Issues
Topic: Do you Mow your own Lawn?
Replies: 90
Views: 2924

Re: Do you Mow your own Lawn?

Jack FFR1846 wrote:
Thu Nov 02, 2017 9:09 am
I'm a self sufficient New Englander. Of course I mow my own lawn. And plow the snow off my driveway. And cut down trees for firewood to heat the house. I ain't no Senator's son.
Same here. Grass, leaves, firewood, snow. Thank goodness for noisy gas powered engines...
by The Wizard
Wed Nov 01, 2017 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Limited Term SPIA as bridge income until Social Security? SPIA Ladder Viability?
Replies: 27
Views: 1038

Re: Limited Term SPIA as bridge income until Social Security? SPIA Ladder Viability?

Late to the discussion, but I agree with sandtrap's conclusion. I took a different approach when I retired at age 63 in 2013. I annuitized a fair amount of my tax deferred portfolio for lifetime income. Additionally, I set up (smaller) monthly withdrawals of $3000/month in lieu of SS at age 70. That...
by The Wizard
Wed Nov 01, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 Bogleheads Conference - Annuities: The Good, The Bad, and The Ugly
Replies: 18
Views: 2189

Re: 2017 Bogleheads Conference - Annuities: The Good, The Bad, and The Ugly

...What other reasons would you buy a SPIA if your withdrawal rate in retirement is 2% or less ? Thanks Paul When you get down to a withdrawal rate of 2% or less, you are dealing with reasonably Large Wealth, where annuities are a less useful tool. Nonetheless, if I had $10M in financial assets at ...
by The Wizard
Wed Nov 01, 2017 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 Bogleheads Conference - Annuities: The Good, The Bad, and The Ugly
Replies: 18
Views: 2189

Re: 2017 Bogleheads Conference - Annuities: The Good, The Bad, and The Ugly

...Further, I regret the co-authors pass by TIAA (a rare "participating annuity"), as in many cases (mine included) TIAA can be a great deal for participants who have built up "vintages." YMMV. Lev Right. But there's at least two issues at play here, the main one being that TIAA tax deferred produc...
by The Wizard
Wed Nov 01, 2017 7:22 am
Forum: Personal Finance (Not Investing)
Topic: I'm fairly young but done with saving money
Replies: 75
Views: 9404

Re: I'm fairly young but done with saving money

I don’t know about you but $2M for early retirement seems very low to me. I’d double that figure at least. Health care is expensive, don’t know if you get health care through work but we are self employed and it costs us like $18 per year and it goes up like 10% or more every year, plus deductibles...
by The Wizard
Mon Oct 30, 2017 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: My 401k is almost all cash now. 1/2 Mil
Replies: 89
Views: 8843

Re: My 401k is almost all cash now. 1/2 Mil

That stable value fund isn't "cash". It has an APR I assume.
I have some $$$ in TIAA Traditional, for instance, paying either 3.25% or 4.0% for new money.

Nonetheless, the bulk of my assets are in stock funds, not cash nor Trad...
by The Wizard
Mon Oct 30, 2017 6:43 pm
Forum: Investing - Help with Personal Investments
Topic: What’s a safe formula for assets needed to retire?
Replies: 58
Views: 4092

Re: What’s a safe formula for assets needed to retire?

There is another side to safety. If you work until you reach, for example, 40x expenses, you will likely work longer than you need to. There is one line of thinking that you've wasted some of your retirement working for more money you didn't need. Ok, so these various Billionaires we hear about fro...
by The Wizard
Mon Oct 30, 2017 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: What’s a safe formula for assets needed to retire?
Replies: 58
Views: 4092

Re: What’s a safe formula for assets needed to retire?

Annuities are no less recommended than stocks or bonds. They serve a different purpose. This needs to be explained. Single Premium Immediate Annuities are generally the only GOOD annuities. Very simple. You give the insurance company a lump sum of $X and they give you $Y per year for life. Single-p...
by The Wizard
Mon Oct 30, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: What’s a safe formula for assets needed to retire?
Replies: 58
Views: 4092

Re: What’s a safe formula for assets needed to retire?

Hi, So lets assume I have annual expenditures of 120K. Would you say a safe retirement withdrawal rate of 2.5% is 4.8 million? I'm not being facetious but honestly curious at what point I could consider retiring. Thanks! Take $1M and annuitize it to get your first $65,000 per year. Then get $2M add...
by The Wizard
Mon Oct 30, 2017 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: What’s a safe formula for assets needed to retire?
Replies: 58
Views: 4092

Re: What’s a safe formula for assets needed to retire?

Hi, So lets assume I have annual expenditures of 120K. Would you say a safe retirement withdrawal rate of 2.5% is 4.8 million? I'm not being facetious but honestly curious at what point I could consider retiring. Thanks! Take $1M and annuitize it to get your first $65,000 per year. Then get $2M add...
by The Wizard
Mon Oct 30, 2017 2:26 pm
Forum: Personal Consumer Issues
Topic: When the cold wind comes, I go where the dahlias bloom
Replies: 32
Views: 2555

Re: When the cold wind comes, I go where the dahlias bloom

...I'm not sure I could take the politics or lifestyle of Florida or Arizona though... I wouldn't plan on running for office or otherwise getting involved in local politics. I'd just want to escape the hell which is winter here in the northeast. Each year it seems to get more and more difficult for...
by The Wizard
Mon Oct 30, 2017 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: What’s a safe formula for assets needed to retire?
Replies: 58
Views: 4092

Re: What’s a safe formula for assets needed to retire?

I agree with bobcat2's discussion on retirement INCOME focus, whether with DB plans or DC plans. So long as the bulk of your retirement income comes from pensions, annuities, and SS, then you should be in good shape going forward, with a growing portfolio. You can certainly withdraw from your portfo...
by The Wizard
Sun Oct 29, 2017 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Projecting Tax Liability - Assistance Required
Replies: 26
Views: 1445

Re: Projecting Tax Liability - Assistance Required

- Based upon my research, Car Registration is deductible so long that it is annual. For California, we must register our car every year and that is why it was part of the itemized deduction. In California, PART of the car registration based on the (declining) value of the car is deductible. It is a...
by The Wizard
Sun Oct 29, 2017 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Projecting Tax Liability - Assistance Required
Replies: 26
Views: 1445

Re: Projecting Tax Liability - Assistance Required

If the bulk of your income is from employment, then the W-4 form with your employer should adjust automatically to account for your changed income. If not quite right, then tweak it by an exemption or two next year until it is. The problem arises when employment income is NOT the bulk of your income...
by The Wizard
Sun Oct 29, 2017 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: What’s a safe formula for assets needed to retire?
Replies: 58
Views: 4092

Re: What’s a safe formula for assets needed to retire?

The one most often cited is ~ 25 times residual annual expenses (gross expenses in retirement minus pensions/SS/other income). this is just a rule of thumb. Some are more comfortable with a higher multiple, especially if retiring "early." I prefer Desired Income as the target. If you want your port...
by The Wizard
Sun Oct 29, 2017 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: What was the main reason you retired?
Replies: 210
Views: 15047

Re: What was the main reason you retired?

This is what I am curious about. If you guys are set financially why not just leave now? You talk about "doesn't have to stick around and being humiliated" yet they did just that. He was called in at 64 YO and given a reprimand for dress code?? If it was me I would have told that boss to "Xoff!" an...
by The Wizard
Sun Oct 29, 2017 11:16 am
Forum: Investing - Help with Personal Investments
Topic: S&P 500 -- Ten Years Thoughts?
Replies: 45
Views: 5246

Re: S&P 500 -- Ten Years Thoughts?

JD101 wrote:
Sat Oct 28, 2017 11:48 am
Taylor Larimore wrote:
Sat Oct 28, 2017 11:45 am

Both funds are excellent with similar risk, return, and great tax-efficiency.

Best wishes.
Taylor
If they are similar in risk, return and efficiency why would anyone choose SP500? the added advantage of total stock market is greater diversification.
They make a good TLH pair...
by The Wizard
Sat Oct 28, 2017 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: What was the main reason you retired?
Replies: 210
Views: 15047

Re: What was the main reason you retired?

My reason was that work was getting in the way of what I wanted to do, travel.
And the recreational travel I was doing was impacting my work too much.
So I cut loose for the better...
by The Wizard
Sat Oct 28, 2017 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: RMD distribution timing
Replies: 32
Views: 2485

Re: RMD distribution timing

joe8d wrote:
Sat Oct 28, 2017 9:40 pm
The Wizard wrote:
Fri Oct 27, 2017 9:20 pm
joe8d wrote:
Fri Oct 27, 2017 8:29 pm
First Q reinvest date for TSM.TSM from IRA goes into Taxable TSM.
This isn't really helping to clarify the RMD question...
I'm sorry, but I think I answered the OP's question.
Ok, no problem then...
by The Wizard
Sat Oct 28, 2017 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity explanation for Chuck
Replies: 9
Views: 1315

Re: Annuity explanation for Chuck

DBT If he did not get a return of 7% on $100,000 annuity (extra $7000) as posted, thenn would be the correct yield on the $100,000 annuity? An annuity doesn't have a yield. What you can do is compute a theoretical interest rate that would be enough to support the return of the annuity money plus en...