Search found 10851 matches

by The Wizard
Fri Nov 24, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Regrets for taking SS at 62 or waiting?
Replies: 67
Views: 4606

Re: Regrets for taking SS at 62 or waiting?

It can be argued that it’s still better to Roth convert, just in case. But if funds are needed to meet expenses leading up to SS, it would seem better to pay taxes on those withdrawals, and skip the Roth conversions. I do both each month, now at age 67. I have an ongoing monthly Roth conversion plu...
by The Wizard
Fri Nov 24, 2017 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Regrets for taking SS at 62 or waiting?
Replies: 67
Views: 4606

Re: Regrets for taking SS at 62 or waiting?

Seems like a slight variation on this topic comes up every 2-3 days lately.
I've not claimed my own benefit yet but I suspect I will be content with my decision to delay when I receive my first age 70 benefit check 28 months from now...
by The Wizard
Wed Nov 22, 2017 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: How do you define success in your life?
Replies: 46
Views: 1810

Re: How do you define success in your life?

Success sounds like a binary choice: yes or no.
I've done decently well to this point both financially and activity wise, so I'm ok with that.
I've done less well on a marital basis, but that's water over the dam.
I have no need for monuments to be erected in my name...
by The Wizard
Wed Nov 22, 2017 5:08 am
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA Phase Out
Replies: 15
Views: 1506

Re: Help with Roth IRA Phase Out

A related point: if your income is variable and likely to be close to the Roth phase out most years, then just do the backdoor Roth contribution each year that you are under age 70.
This avoids possibly having to take corrective action late in the year if your income spikes...
by The Wizard
Tue Nov 21, 2017 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 158
Views: 10581

Re: Why not take Social Security at 62

People with modest retirement savings should probably take SS whenever they stop full-time work, whether 62 or some years later. This helps maintain their lifestyle. People with "large" tax-sheltered accumulations should delay SS to age 70 to give them time to spend down some of the tax-deferred ac...
by The Wizard
Tue Nov 21, 2017 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: IRA at TIAA - optimize expense charges?
Replies: 6
Views: 413

Re: IRA at TIAA - optimize expense charges?

The only fund worth having in an IRA at TIAA is TREA.
Otherwise, move the rest to Vanguard.
TREA can be annuitized and a good portion of my retirement income comes from exactly that...
by The Wizard
Tue Nov 21, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 158
Views: 10581

Re: Why not take Social Security at 62

I'm past the halfway point in delaying SS from age 63 to 70. I'm withdrawing $3000/month from tax deferred investments in lieu of SS. So around $252,000 over the seven years. But I do pro rata withdrawals each month over the mix of my investments, about 55% stocks. Moving that entire $252k into a "...
by The Wizard
Tue Nov 21, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 158
Views: 10581

Re: Why not take Social Security at 62

I'm past the halfway point in delaying SS from age 63 to 70. I'm withdrawing $3000/month from tax deferred investments in lieu of SS. So around $252,000 over the seven years. But I do pro rata withdrawals each month over the mix of my investments, about 55% stocks. Moving that entire $252k into a "...
by The Wizard
Tue Nov 21, 2017 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 158
Views: 10581

Re: Why not take Social Security at 62

Here's a different way to look at the problem: Delay Social Security to age 70 and Spend more money at 62 . What about the 8 years of compounding you are giving up by moving 272,000 from portfolio to 1% savings account. That might make some difference in the calculation. If that is addressed in the...
by The Wizard
Tue Nov 21, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: where should I put my direct deposit?
Replies: 22
Views: 2092

Re: where should I put my direct deposit?

Sounds like you're cutting it too close if you have to keep checking your bank balance, and stressing about it. I'd cut back the amount of the auto investment to VG. Then, when your checking balance gets "too big", do a manual transfer to VG. Correct. Best to put tax deferred 401(k) contributions o...
by The Wizard
Tue Nov 21, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: where should I put my direct deposit?
Replies: 22
Views: 2092

Re: where should I put my direct deposit?

I recommend using your checking account as a hub, to receive all deposits. I would then define a target $$ amount to have in your checking account after each deposit and after all outstanding bills are paid. For years, my target was $3000. Amounts exceeding that target you can move to your investmen...
by The Wizard
Tue Nov 21, 2017 10:52 am
Forum: Personal Consumer Issues
Topic: Best vehicle for seniors?
Replies: 61
Views: 3960

Re: Best vehicle for seniors?

I'm 67, so I suppose I'm a Senior. I have an F-150 pickup and a Mustang that I drive and I like them both. But I'm an experienced driver, both urban and rural conditions. And I have good Situational Awareness when I drive, using all three mirrors, my turn signals, and keeping my speed up to the prev...
by The Wizard
Tue Nov 21, 2017 10:33 am
Forum: Investing - Theory, News & General
Topic: Tax Basics Cheatsheet?
Replies: 8
Views: 1006

Re: Tax Basics Cheatsheet?

OP is asking about non retirement accounts, which we usually call taxable investment accounts. There's a concise body of knowledge related to that area, not so much a set of numbers. Most of these topics are in the Wiki somewhere: Tax efficiency. Tax loss harvesting. Wash sales. Plus there are some ...
by The Wizard
Tue Nov 21, 2017 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Planning for the final months of work
Replies: 50
Views: 3527

Re: Planning for the final months of work

As I have said earlier to your question "Then there is transaction fees, dividend reinvestment fees,etc. I couldn't name them all." There are NO additional fees. I can even buy and sell stocks without a fee if I wanted to use my accounts at EJ as a brokerage account. The managed fee takes care of a...
by The Wizard
Tue Nov 21, 2017 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 158
Views: 10581

Re: Why not take Social Security at 62

People with modest retirement savings should probably take SS whenever they stop full-time work, whether 62 or some years later. This helps maintain their lifestyle. People with "large" tax-sheltered accumulations should delay SS to age 70 to give them time to spend down some of the tax-deferred acc...
by The Wizard
Tue Nov 21, 2017 12:52 am
Forum: Investing - Help with Personal Investments
Topic: Do I need a cash reserve
Replies: 7
Views: 872

Re: Do I need a cash reserve

I am retired, primarily invested in index funds with a 60/40 split. I keep hearing conflicting things about whether I need a cash reserve past a six month emergency fund. Seems like some people feel that since a retiree is no longer in the accumulation phase they need two to three years of cash to ...
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: 19
Views: 1288

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: 39
Views: 3096

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: 50
Views: 3527

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: 221
Views: 13065

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: 1114

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: 4168

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: 4168

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: 4168

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: 2982

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: 2982

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: 2982

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: 2982

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: 9703

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: 9703

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: 9703

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: 4832

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: 10745

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: 2086

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: 2086

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: 4832

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: 12771

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: 13042

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: 3436

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: 3436

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: 10745

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: 2111

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: 2517

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: 7595

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: 6154

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: 2938

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: 1045

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: 2203

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: 2203

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...