Search found 12092 matches

by The Wizard
Wed Oct 17, 2018 4:28 am
Forum: Personal Finance (Not Investing)
Topic: What do you consider 'enough'?
Replies: 51
Views: 4344

Re: What do you consider 'enough'?

Perhaps posts responding to the query, “What do you consider ‘enough’?” that fail to state the number the poster would consider “enough,” should be screened out by the moderator. That would prune the dozens of posts above to what: zero? As to Bogle’s book: the title says it all. Maybe add an exclam...
by The Wizard
Wed Oct 17, 2018 4:25 am
Forum: Personal Finance (Not Investing)
Topic: What do you consider 'enough'?
Replies: 51
Views: 4344

Re: What do you consider 'enough'?

Enough income in retirement seems to be in the $100k to $150k per year zone.
During working years it could be the same or more, depending on number of people and expected number of years of employment...
by The Wizard
Tue Oct 16, 2018 9:19 am
Forum: Investing - Theory, News & General
Topic: How much of a dip do you want before you TLH?
Replies: 12
Views: 589

Re: How much of a dip do you want before you TLH?

I set a $ amount (I do it when I can harvest a $5000 loss from a single fund) but I'll go lower if a short term loss is close to becoming a long term loss or if the year is almost over. What's the advantage of a short term loss vs a long term loss? That it can be used to counter short term gains?
by The Wizard
Tue Oct 16, 2018 9:17 am
Forum: Investing - Theory, News & General
Topic: How much of a dip do you want before you TLH?
Replies: 12
Views: 589

Re: How much of a dip do you want before you TLH?

You'll need more than two TLH partner funds if you do it several times per month.
So that could make it messier...
by The Wizard
Mon Oct 15, 2018 6:36 am
Forum: Investing - Help with Personal Investments
Topic: Have you annuitized some of your money?
Replies: 67
Views: 5576

Re: Have you annuitized some of your money?

With regard to TIAA Traditional lifetime annuities, it's worth noting that the monthly payout consists of a guaranteed amount + additional amounts. If TIAA ever became financially stressed, they would simply dial down the additional amounts paid to annuitants by some percentage. But in the past five...
by The Wizard
Sun Oct 14, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Have you annuitized some of your money?
Replies: 67
Views: 5576

Re: Have you annuitized some of your money?

...The annuitized income while only partially protected from inflation is very different than our portfolio investments... Actually, annuitized income based on CREF Stock or TREA is fairly similar to holding a stock index fund or a REIT fund in your portfolio, especially if you're using something l...
by The Wizard
Sun Oct 14, 2018 12:10 am
Forum: Investing - Help with Personal Investments
Topic: $50,000: Should I buy now or wait for the market to drop further?
Replies: 41
Views: 5801

Re: $50,000: Should I buy now or wait for the market to drop further?

stocknoob4111 wrote:
Sat Oct 13, 2018 11:48 pm
who said it is dropping further?
The crash is coming, from what I've heard...
by The Wizard
Sat Oct 13, 2018 11:29 pm
Forum: Investing - Help with Personal Investments
Topic: $50,000: Should I buy now or wait for the market to drop further?
Replies: 41
Views: 5801

Re: $50,000: Should I buy now or wait for the market to drop further?

Assuming you already have a checking account linked to your Vanguard account, you'll get the next closing price on mutual fund buys. Meaning 4 pm ET Monday...
by The Wizard
Sat Oct 13, 2018 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Just Divorced -- Need Help [looking for new credit card]
Replies: 66
Views: 5971

Re: Just Divorced -- Need Help [looking for new credit card]

We need to get back to the OP's financial concerns and away from general divorce ranting...
by The Wizard
Sat Oct 13, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Just Divorced -- Need Help [looking for new credit card]
Replies: 66
Views: 5971

Re: Just Divorced -- Need Help [looking for new credit card]

That's a very nice way of putting lipstick on a pig. :wink: I'm not sure the math works out as you claim (Kotlikoff of ESPlanner fame uses 1 1/2 times economy for those married). Still, it all seems fairly thermonuclear to me and well worth side-stepping. I'm not *sure* of it either and I'm not doi...
by The Wizard
Sat Oct 13, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Just Divorced -- Need Help [looking for new credit card]
Replies: 66
Views: 5971

Re: Just Divorced -- Need Help

Baloney on the nuclear bomb. I got divorced in 1997 after 20+ years of marriage. It wasn't fun. We split assets 50/50. I made out fine in the end... You lost 50% of your assets. How is that not a nuclear bomb? I mean, I’m glad you’re positive about everything. They weren't *my* assets, you see? Tha...
by The Wizard
Sat Oct 13, 2018 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Have you annuitized some of your money?
Replies: 67
Views: 5576

Re: Have you annuitized some of your money?

I annuitized a hefty percentage of my tax deferred accumulation at start of retirement, age 63. Total retirement income then was annuity income plus an additional amount withdrawn from remaining tax deferred each month to bridge the seven years until start of SS at age 70. I wanted net income hittin...
by The Wizard
Sat Oct 13, 2018 2:41 am
Forum: Personal Consumer Issues
Topic: Census [Received form in mail]
Replies: 21
Views: 1714

Re: Census

...I would call the US Census dept directly... using known phone numbers.... found in having hard copy phone directory... you know, those paper things :P I've thrown all my phone books in the recycling bin years ago and suspect most others have also. One can probably find census bureau contact info...
by The Wizard
Sat Oct 13, 2018 2:21 am
Forum: Investing - Help with Personal Investments
Topic: Federal Reserve Thrift rollover to IRA prior to RMD
Replies: 2
Views: 266

Re: Federal Reserve Thrift rollover to IRA prior to RMD

I don't see any dollar amounts in your post but I would keep a good portion in the Federal reserve thrift plan. Check out the pension details. If you're in good health at age 70, you should be able to get at least a 7.5% annual payout with 10-year guarantee. I would pensionize enough to get at least...
by The Wizard
Fri Oct 12, 2018 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Just Divorced -- Need Help [looking for new credit card]
Replies: 66
Views: 5971

Re: Just Divorced -- Need Help

As my divorce attorney said, divorce settlements are supposed to be equitable, but not necessarily equal. I doubt very much most divorces are split exactly down the middle, and assets can come in all forms, liquid, illiquid, taxable, pre-tax. A divorce is a hugely negative event, and much of the ti...
by The Wizard
Fri Oct 12, 2018 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Just Divorced -- Need Help [looking for new credit card]
Replies: 66
Views: 5971

Re: Just Divorced -- Need Help

As my divorce attorney said, divorce settlements are supposed to be equitable, but not necessarily equal. I doubt very much most divorces are split exactly down the middle, and assets can come in all forms, liquid, illiquid, taxable, pre-tax. A divorce is a hugely negative event, and much of the ti...
by The Wizard
Fri Oct 12, 2018 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions about age 66 to 70 Roth Conversions - up to 12% or 22% bracket
Replies: 12
Views: 818

Re: Opinions about age 66 to 70 Roth Conversions - up to 12% or 22% bracket

Look at your income from all sources after you start taking RMDs. Include SS, any pensions, and all IRA/401(k) income. Check where that would put you in terms of income tax and IRMAA penalty fees. If you are close to an income tax bracket or IRMAA cut point, see what you can do to get below that po...
by The Wizard
Fri Oct 12, 2018 2:12 pm
Forum: Investing - Theory, News & General
Topic: Does it make sense to consider that stocks are 'on sale' when there's a correction?
Replies: 84
Views: 4236

Re: Does it make sense to consider that stocks are 'on sale' when there's a correction?

Stock prices are only weakly linked to academic theories and financial facts. Majority of pricing moves are based on emotional expectations. Stocks, in other words, tend to follow a random walk ;-). Hence Burton Malkiel "A Random Walk down Wall Street". So especially when talking about an S&P 500 o...
by The Wizard
Fri Oct 12, 2018 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions about age 66 to 70 Roth Conversions - up to 12% or 22% bracket
Replies: 12
Views: 818

Re: Opinions about age 66 to 70 Roth Conversions - up to 12% or 22% bracket

Electron wrote:
Fri Oct 12, 2018 1:16 pm
A key factor in the decision would be your projected tax bracket in retirement...
OP is already in retirement.
Rather than tax brackets, people need to look at projected income (AGI) before and after age 70.5 and then do Roth conversions in the early years to equalize income to a degree...
by The Wizard
Fri Oct 12, 2018 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions about age 66 to 70 Roth Conversions - up to 12% or 22% bracket
Replies: 12
Views: 818

Re: Opinions about age 66 to 70 Roth Conversions - up to 12% or 22% bracket

Ignore tax brackets. Focus instead on AGI and IRMAA tiers. For example, a single person with projected AGI of $115,000 at age 70, including SS and RMDs but zero Roth conversions from age 70 on. In that case, I would try to do Roth conversions in my late 60s to bring AGI up to $110k or $112k. EXCEPT ...
by The Wizard
Fri Oct 12, 2018 8:58 am
Forum: Investing - Theory, News & General
Topic: Does it make sense to consider that stocks are 'on sale' when there's a correction?
Replies: 84
Views: 4236

Re: Does it make sense to consider that stocks are 'on sale' when there's a correction?

Maybe if we're only looking relative to very recent prices, but you don't have to go back that far to question why today's prices would be thought of as a "sale." I don't remember anyone claiming that VTI (Vanguard Total Stock Market ETF) was on sale at the beginning of 2018 when it was close to th...
by The Wizard
Fri Oct 12, 2018 5:50 am
Forum: Investing - Theory, News & General
Topic: Does it make sense to consider that stocks are 'on sale' when there's a correction?
Replies: 84
Views: 4236

Re: Does it make sense to consider that stocks are 'on sale' when there's a correction?

i love market corrections. who needs academic studies when the best indicator out there is CNBC "Markets in turmoil" Special reports. you may be early buying dips but that is when the serious money is made. keep it simple. Shouldn't "serious money" already be fully invested such that there's nothin...
by The Wizard
Fri Oct 12, 2018 5:45 am
Forum: Investing - Theory, News & General
Topic: Does it make sense to consider that stocks are 'on sale' when there's a correction?
Replies: 84
Views: 4236

Re: Does it make sense to consider that stocks are 'on sale' when there's a correction?

Maybe if we're only looking relative to very recent prices, but you don't have to go back that far to question why today's prices would be thought of as a "sale." I don't remember anyone claiming that VTI (Vanguard Total Stock Market ETF) was on sale at the beginning of 2018 when it was close to th...
by The Wizard
Fri Oct 12, 2018 4:57 am
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2883

Re: Calculating amount needed for SS bridge

...Yes I know I've seen this recommendation many times before (more accurately, I've seen circular arguments concerning it many times before). My choice is strongly influenced by Bernstein's won the game concept as well as behavioral finance. Even more importantly, the choice is informed by my own ...
by The Wizard
Fri Oct 12, 2018 4:42 am
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2883

Re: Calculating amount needed for SS bridge

...I like the 'rising glidepath' route as well. 60/40 seems pretty conservative if all your needs + some desires are covered by an inflation adjusted pension and social security. Perhaps start at 60/40 and end at 70/30 or so once social security kicks in. That will probably tend to happen over time...
by The Wizard
Fri Oct 12, 2018 4:35 am
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2883

Re: Calculating amount needed for SS bridge

Another option could be an immediate annuity. $650k investment, 15 year, period certain, with CPI COLA would give you ~$54k/year For bridge amount, I would assume 0% real return i.e. my return would just keep up with inflation. Investing in an annuity would reduce the size of the bridge amount but ...
by The Wizard
Fri Oct 12, 2018 4:20 am
Forum: Investing - Theory, News & General
Topic: Does it make sense to consider that stocks are 'on sale' when there's a correction?
Replies: 84
Views: 4236

Re: Does it make sense to consider that stocks are 'on sale' when there's a correction?

Stock prices are only weakly linked to academic theories and financial facts. Majority of pricing moves are based on emotional expectations. So especially when talking about an S&P 500 or total market index fund, yes, those are definitely "on sale" now. Individual stocks like Tesla or Apple? Hmmm, I...
by The Wizard
Thu Oct 11, 2018 4:02 am
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2883

Re: Calculating amount needed for SS bridge

...I bridged from age 62 to 70. I made sure I had say about 5 or 6 years worth of needed bridge funding set aside. I would supplement that as the years went by from taxable distributions, tax returns etc. and found that worked for me. A few years in my wife's took SS which lowered our gap, then lat...
by The Wizard
Wed Oct 10, 2018 8:52 pm
Forum: Personal Consumer Issues
Topic: Project FI promotion
Replies: 9
Views: 792

Re: Project FI promotion

FI base prices are too high , you can do better elsewhere , buying unlocked and skipping that "credit" Project Fi phones are unlocked to begin with, so that's a non issue if you decide to go elsewhere. I use less than 2 GB of cellular data most months so I'm good with Fi. Their seamless internation...
by The Wizard
Wed Oct 10, 2018 8:26 pm
Forum: Personal Consumer Issues
Topic: Project FI promotion
Replies: 9
Views: 792

Re: Project FI promotion

FI base prices are too high , you can do better elsewhere , buying unlocked and skipping that "credit" Project Fi phones are unlocked to begin with, so that's a non issue if you decide to go elsewhere. I use less than 2 GB of cellular data most months so I'm good with Fi. Their seamless internation...
by The Wizard
Wed Oct 10, 2018 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: confused about medicare threshold
Replies: 11
Views: 886

Re: confused about medicare threshold

What you might have seen was that Roth conversions do not change your direct Roth contribution MAGI. There are different MAGI calculations. The IRMAA MAGI calculations includes Roth conversions. Right. The IRS has a few different MAGIs to keep taxpayers off balance. But there's only one AGI so far ...
by The Wizard
Wed Oct 10, 2018 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: confused about medicare threshold
Replies: 11
Views: 886

Re: confused about medicare threshold

With the help from all of you I now understand the answer to my original questions. But now I have another related question. Does a conversion from a T-IRA to Roth count in the calculation of MAGI for determining if we will be over the $170,000 threshold for Medicare premiums? I understand that suc...
by The Wizard
Wed Oct 10, 2018 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: confused about medicare threshold
Replies: 11
Views: 886

Re: confused about medicare threshold

Others have posted correctly. There are several IRMAA thresholds, not just the $85,000 per person one. It's bad financial management to be "just over" a threshold due to the cliff effect. Main actionable thing for most of us regarding AGI and the IRMAA tiers is Roth conversions. So be careful doing ...
by The Wizard
Wed Oct 10, 2018 3:03 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Allan Roth doesn't like single premium annuities

willthrill81 wrote:
Wed Oct 10, 2018 2:44 pm
I would really like to hear an interview/debate between Allan Roth and Wade Pfau regarding SPIAs. :D
They've both been to the annual BH conference, though I didn't see Wade there this year.
Definitely a good topic suggestion for next time...
by The Wizard
Wed Oct 10, 2018 3:00 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Allan Roth doesn't like single premium annuities

How many times do I have to say this? It isn't surprising that pensions pay out better than SPIAs because consumers buy SPIAs one at a time where a pension is the equivalent of Costco, a pension can buy in bulk. This is why when faced with a choice between a pension and a lump sum, I most often adv...
by The Wizard
Wed Oct 10, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Allan Roth doesn't like single premium annuities

...The 10% employer contribution to the pension was part of the compensation package, so in a real sense, 100% of the contributions came from the employee. It would be like saying that wages are employer contributions. Wages and benefits are part of the total compensation package, including employe...
by The Wizard
Wed Oct 10, 2018 11:56 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Allan Roth doesn't like single premium annuities

...I think the difference in payout and how the payments are funded make pensions less like SPIAs than you believe they are. They are *similar* in that they pay a set amount per month, but the differences are important. For my spouses government pension, the funding is based upon both her contribut...
by The Wizard
Wed Oct 10, 2018 8:16 am
Forum: Personal Finance (Not Investing)
Topic: request help appealing IRMAA
Replies: 6
Views: 767

Re: request help appealing IRMAA

I have successfully applied for elimination of IRMAA premium using form SSA-44, but can't claim to be an expert. I think you may have confused things a bit if you have included anything in your application other than a qualifying life-changing event. One time events such as sale of assets (capital ...
by The Wizard
Tue Oct 09, 2018 10:54 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Allan Roth doesn't like single premium annuities

dodecahedron wrote:
Tue Oct 09, 2018 10:12 pm
...I think TIAA Trad goes part of the way towards what I am looking for, but (1) their formulas are shrouded in mystery, far from transparent and appear to have some elements of unspecified discretion...
Well stated.
We TIAA Traditional annuitants are the epitome of discretion...
by The Wizard
Tue Oct 09, 2018 9:56 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Allan Roth doesn't like single premium annuities

... Keeping the money in other fixed income gets the advantage if you expect to pass younger and want to leave a larger estate. This is likely the least of my concerns. If my offspring desired an 8-figure inheritance rather than merely a 7-figure inheritance, they should have chosen different paren...
by The Wizard
Tue Oct 09, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Allan Roth doesn't like single premium annuities

... Keeping the money in other fixed income gets the advantage if you expect to pass younger and want to leave a larger estate. This is likely the least of my concerns. If my offspring desired an 8-figure inheritance rather than merely a 7-figure inheritance, they should have chosen different paren...
by The Wizard
Tue Oct 09, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Allan Roth doesn't like single premium annuities

I'm not sure that the Return of Principal argument is totally valid as a negative point to consider. I annuitized some funds at age 63 with a payout rate of 6.5% with TIAA Traditional. Yes, it takes 16 years to recover my principal, or maybe 19 years if I assume a 3% interest rate. So will I live 16...
by The Wizard
Tue Oct 09, 2018 9:48 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Alan Roth doesn't like single premium annuities

...We do have one variable annuity with TIAA-CREF from an old 403b. In 3 years time the annuity has paid out 6 x what was initially put into the account including matching by the former employer. Also the variable CREF portion has increased the payout over 30% in the 3 years. The costs to the insur...
by The Wizard
Tue Oct 09, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9241

Re: Alan Roth doesn't like single premium annuities

I think there’s a strong case, if one is genuinely vulnerable to running out of money. I’m most certainly going to annuitize my TIAA Traditional hondings and will take it from there. TIAA Traditional is better than other insurance company SPIAs for two reasons: 1) initial payout rate can be signifi...
by The Wizard
Tue Oct 09, 2018 9:00 am
Forum: Personal Finance (Not Investing)
Topic: How do you calculate/state your income?
Replies: 13
Views: 1196

Re: How do you calculate/state your income?

I don't really tell anyone besides my wife what I make. If I did tell anyone, it would be gross W2 income. Not side hustles, etc. This was approximately true for me back when I worked for a living. Now that I'm retired, I look at my income two different ways: 1) my AGI, which includes discounted SS...
by The Wizard
Mon Oct 08, 2018 6:20 pm
Forum: Investing - Theory, News & General
Topic: 2018 Bogleheads Conference Notes
Replies: 36
Views: 5027

Re: 2018 Bogleheads Conference Notes

Steve321 - I've been to four Bogleheads Conferences and there is no one more affable, helpful, warm, interesting, friendly and genuinely kind than Dr. Bernstein (other than Jack Bogle and Taylor Larimore :happy ) Dr. Bernstein spends the entire conference meeting every Boglehead with warmth, he ans...
by The Wizard
Mon Oct 08, 2018 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: MAGI and Social Security
Replies: 18
Views: 1929

Re: MAGI and Social Security

The MAGI I was trying to understand is that related to the Medicare IRMAA calculation. The 15% of SS benefits that is not taxable is not added back to AGI for the purposes of calculating the MAGI for the Medicare IRMAA - assuming I have interpreted the reference documents correctly. I believe you h...
by The Wizard
Mon Oct 08, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: Is it a sign that a bear market is coming, when most people are afraid that stocks will plummet?
Replies: 42
Views: 2770

Re: Is it a sign that a bear market is coming, when most people are afraid that stocks will plummet?

Call_Me_Op wrote:
Mon Oct 08, 2018 8:51 am
No. First sign of a major bear market is usually when most everyone thinks that stocks must keep going up - to the moon.
Right.
Public sentiment is often said to be a Contrary Indicator...
by The Wizard
Mon Oct 08, 2018 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: MAGI and Social Security
Replies: 18
Views: 1929

Re: MAGI and Social Security

Thank you for the link. That is good news since it will allow me to convert an additional $5k/y from my tIRA to a rIRA and still stay below the IRMAA (Medicare income-related monthly adjustment amount). Note that there are at least a few different MAGIs in the IRS income tax world. The one for IRMA...
by The Wizard
Mon Oct 08, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: "Retirement age uncertainty increases the savings needed for success"
Replies: 36
Views: 3029

Re: "Retirement age uncertainty increases the savings needed for success"

Ok, I finished reading the linked PDF file. The author seems to be confusing, or equating, Financial Independence with Retirement. There are certainly cases where people are forced into unemployment/retirement due to layoff or health problems. But there are also many cases of people who are FI and j...