Search found 11714 matches

by The Wizard
Mon Jul 16, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 54
Views: 2800

Re: A different take on retirement income: time segmentation

Married couples would get higher income in retirement from SPIAs if each bought a single life SPIA for $500,000 rather than buying a joint life SPIA for $1M. This also helps solve that nasty problem after the death of the first spouse where the survivor has excess income in a higher tax bracket. We ...
by The Wizard
Mon Jul 16, 2018 8:52 am
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 54
Views: 2800

Re: A different take on retirement income: time segmentation

...For that matter, there is quite a bit of evidence that the vast majority of retirees -- even ones with comparatively tiny portfolios -- don't spend them down... Ok, I think there are two related but distinct issues here. One is the level of "spending" each year in retirement and the other is you...
by The Wizard
Mon Jul 16, 2018 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Duration of Sequence of Return risk for long retirements
Replies: 26
Views: 926

Re: Duration of Sequence of Return risk for long retirements

I'm not sure if I'll have a "long" retirement or not, but when I retired in 2013 at age 63, the main duration of concern for SOR risk was the seven years until starting age 70 SS in 2020. So when I claim SS 20 months from now, the $3400+ per month from that will pretty much immunize me against SOR r...
by The Wizard
Mon Jul 16, 2018 4:51 am
Forum: Investing - Help with Personal Investments
Topic: Realizing 85% of 401k contribution going to bonds
Replies: 17
Views: 1397

Re: Realizing 85% of 401k contribution going to bonds

If you have $1M in your 401(k) + IRA at age 70, your RMD will be less than $40,000 to start with. Income taxes on that much ordinary income are rather low, so it depends on how much additional income you have from SS, pensions, etc. I suspect that many people with good sized 401(k) accounts will end...
by The Wizard
Mon Jul 16, 2018 4:17 am
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 54
Views: 2800

Re: A different take on retirement income: time segmentation

Theory is that retirees overall spending tends to decline with age. How much of this is because they spent much of their modest nest eggs early on, unwisely perhaps, and now don't really have enough remaining to spend more? On the other hand, we have people with larger portfolios who simply lose int...
by The Wizard
Mon Jul 16, 2018 4:03 am
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 54
Views: 2800

Re: A different take on retirement income: time segmentation

...A SPIA without an inflation-adjustment could certainly be used for part of retiree's ESP. But 20-30 years of inflation are likely to take their toll on the spending power of the monthly payout, so a significant portion of the ESP should have components that have at least historically been capabl...
by The Wizard
Sat Jul 14, 2018 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Hump vs. Tax Torpedo
Replies: 13
Views: 1561

Re: Social Security Tax Hump vs. Tax Torpedo

These are two separate issues. I'm well beyond the Tax Hump zone, with 85% of my Divorced Spouse SS Benefit being taxed presently. If I ignored future planning, then i could experience that wonderful Tax Torpedo effect at age 70 ( in two years) when maximal personal SS and RMDs start. My AGI would j...
by The Wizard
Sat Jul 14, 2018 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Spending profile in retirement
Replies: 19
Views: 1540

Re: Spending profile in retirement

I don't like the OP's decline in spending as time goes on. I've managed to have my income increase most years in retirement thus far (five). Now I don't actually "spend" all of my income each year in retirement. Some goes into my new car fund and will likely get spent later. I'd be happy to increase...
by The Wizard
Sat Jul 14, 2018 10:16 am
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6203

Re: Bucket Portfolio article by Christine Benz

This thread would be far more useful with terms associated. To me a bucket is an individually defined portfolio with it's own unique AA set created to serve a timeframe or purpose. Obviously this is not the definition being used by the majority here, especially ardent anti-Bucketeers. Right. Furthe...
by The Wizard
Sat Jul 14, 2018 3:28 am
Forum: Investing - Help with Personal Investments
Topic: massive Roth conversion
Replies: 39
Views: 3064

Re: massive Roth conversion

From my perspective the older you are the less valuable Roth conversions become because you have fewer years to take advantage of the tax-free gains (assuming the conversion is not for estate purposes to potentially pass the Roth proceeds to someone in a higher tax bracket). Another "Less bang for ...
by The Wizard
Fri Jul 13, 2018 6:38 am
Forum: Personal Consumer Issues
Topic: Thesaurus Help Please
Replies: 12
Views: 671

Re: Thesaurus Help Please

Moneybags...
by The Wizard
Fri Jul 13, 2018 2:59 am
Forum: Investing - Help with Personal Investments
Topic: 26 years old. Roth ira with edward jones last 3.5 years.
Replies: 44
Views: 2496

Re: 26 years old. Roth ira with edward jones last 3.5 years.

We despise Edward Jones here. Those funds have front end loads as well. Put no more money into your EJ accounts. And quietly formulate a plan to move your Roth IRA elsewhere, as you mentioned. You will have to pay those clowns an account closing fee to escape. This will be your best decision of the ...
by The Wizard
Fri Jul 13, 2018 2:43 am
Forum: Personal Consumer Issues
Topic: Thesaurus Help Please
Replies: 12
Views: 671

Re: Thesaurus Help Please

Plutocrat...
by The Wizard
Thu Jul 12, 2018 12:54 pm
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6203

Re: Bucket Portfolio article by Christine Benz

GAAP wrote:
Thu Jul 12, 2018 12:48 pm

This is what happens automatically if you use rebalancing bands. Bands effectively provide the "buckets", without changing your target AA.
Umm, no.
No they don't...
by The Wizard
Thu Jul 12, 2018 6:48 am
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6203

Re: Bucket Portfolio article by Christine Benz

One common variation or adaptation of bucket strategies that we see here on the forum at times involves Funding the Gap while delaying SS. I'm in the midst of that now, with a seven year gap from start of retirement in 2013 to starting age 70 SS in 2020. I withdraw $3000 per month on top of other in...
by The Wizard
Wed Jul 11, 2018 12:53 pm
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6203

Re: Bucket Portfolio article by Christine Benz

One difference between a bucket scheme and a non bucket scheme is the withdrawal mechanism. Lets assume monthly withdrawals to replenish your checking account in retirement. Thats what I do. So if my target AA was 50% stocks, 45% bonds, and 5% cash, then each monthly withdrawal of $X000 would be don...
by The Wizard
Tue Jul 10, 2018 9:42 pm
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6203

Re: Bucket Portfolio article by Christine Benz

No matter what one thinks is a bucket or is not a bucket, one owns the totality of what one owns. Thinking about it differently doesn't change that fundamental truth. PJW Correct. I printed the eight page report from CB and tried to read it but gave up part way through. *sigh* I have three differen...
by The Wizard
Tue Jul 10, 2018 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: What’s the median income of Bogleheads?
Replies: 29
Views: 3152

Re: What’s the median income of Bogleheads?

Right - because what you keep is more important than what you make. Consider the celebrities with amazing incomes who have relatively little to show for it. Doesn't matter. Question is strictly about income. Net Worth or level of financial assets is a different question. LeBron James's income from ...
by The Wizard
Tue Jul 10, 2018 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: What’s the median income of Bogleheads?
Replies: 29
Views: 3152

Re: What’s the median income of Bogleheads?

When these topics arise, here or elsewhere, they always confuse individual income with household income.
I'm single nowadays, so my household income = my personal income.

But some people are married, so they have two incomes combined for household income.
Or not.

So what was the question again?
by The Wizard
Mon Jul 09, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 10948

Re: SS taken at 62 vs. 70, but measured from 70+

Thanks everyone for the stats on this subject. It's funny, but if you read the comments on the many Yahoo Finance articles on Social Security (and other sites) , it seems like 99% of the people are vehemently in favor of taking it as early as possible (62). You almost never see a comment about wait...
by The Wizard
Mon Jul 09, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Income stream at 70
Replies: 29
Views: 2556

Re: Income stream at 70

Right so it's now 24% bracket. So do you still do this strategy every year for the five years up to age 70, merrily paying taxes along the way? Correct. The exact numbers, of course, vary considerably from case to case. But this is how you defuse the so-called Tax Torpedo that hits certain (apparen...
by The Wizard
Mon Jul 09, 2018 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Income stream at 70
Replies: 29
Views: 2556

Re: Income stream at 70

Besides charitable contributions are there any other strategies to reduce RMD taxes? Michael Kitces was not too excited about the QLACs. Not really. Goal should be to focus more on net income and less on the taxes incurred to get there. But for retired people in their 60s, projecting future annual ...
by The Wizard
Mon Jul 09, 2018 3:16 pm
Forum: Personal Consumer Issues
Topic: Amazon won't sell this book to me.
Replies: 68
Views: 8247

Re: Amazon won't sell this book to me.

Pajamas wrote:
Mon Jul 09, 2018 3:11 pm

Another alternative would be to have someone who is a Prime member order it for you...
Yes.
I can order it for you.
You'll have to drop by my place to pick it up and reimburse...
by The Wizard
Mon Jul 09, 2018 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: Income stream at 70
Replies: 29
Views: 2556

Re: Income stream at 70

Besides charitable contributions are there any other strategies to reduce RMA taxes? Michael Kitces was not too excited about the QLACs. And also, there's nothing "special" about RMDs, aside from the required percentage table. I've been withdrawing money from my tax deferred funds to live on since ...
by The Wizard
Mon Jul 09, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Income stream at 70
Replies: 29
Views: 2556

Re: Income stream at 70

Besides charitable contributions are there any other strategies to reduce RMD taxes? Michael Kitces was not too excited about the QLACs. Not really. Goal should be to focus more on net income and less on the taxes incurred to get there. But for retired people in their 60s, projecting future annual ...
by The Wizard
Mon Jul 09, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Any Dry Powder Strategies?
Replies: 103
Views: 5672

Re: Any Dry Powder Strategies?

Just rebalance to your desired AA from time to time and be done with it. No point in being creative for a problem that doesn't exist. Now as to what to use for the non-stock portion of your AA, we have a good question. VBILX (Int term bond fund) has total return of -2.14% YTD. So that's not so great...
by The Wizard
Mon Jul 09, 2018 12:27 pm
Forum: Personal Consumer Issues
Topic: Retirees...what’s your lunch menus?
Replies: 54
Views: 4303

Re: Retirees...what’s your lunch menus?

obgraham wrote:
Mon Jul 09, 2018 11:47 am
Lunches:
Monday....Big Mac
Tuesday...Quarterpounder
Wednesday...Filet o fish
Thursday...Nuggets
Friday...Quarterpounder w cheese

Weekends I switch to pizza.
Wowza, lots of healthy chow there!
by The Wizard
Sun Jul 08, 2018 10:22 am
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 10948

Re: SS taken at 62 vs. 70, but measured from 70+

https://d30y9cdsu7xlg0.cloudfront.net/png/98997-200.png That might very well be the case with your specific situation and goals. But I can say that it is not the case with our situation or goals so it really depends on the individual inputs and expectations. Right. People with larger tax deferred b...
by The Wizard
Sun Jul 08, 2018 10:07 am
Forum: Personal Consumer Issues
Topic: Retirees...what’s your lunch menus?
Replies: 54
Views: 4303

Re: Retirees...what’s your lunch menus?

ThereAreNoGurus wrote:
Sun Jul 08, 2018 9:32 am
Here's a link to a site full of genuine low-carb recipes: http://www.genaw.com/lowcarb/recipes.html
Danger. That website triggers a red security alert on my smartphone...
by The Wizard
Sun Jul 08, 2018 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Mortgage payoff vs TIAA Traditional
Replies: 7
Views: 610

Re: Mortgage payoff vs TIAA Traditional

...The points about having too much money to fill tax deferred space later if mortgage is paid off, and additional catch up contributions after 50 are good ones to keep in mind here. Be aware that you are heading down the road to a very financially healthy retirement. That's the good news. The coro...
by The Wizard
Sun Jul 08, 2018 8:29 am
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 93
Views: 8075

Re: What rate of return are you using for retirement projections?

Personally, If I was 20 years from retirement I would choose my AA and glide path, put my head down and contribute what I could to my portfolio checking the value periodically. Then in about 15 years I would look up and see where I was before I would start worrying about projecting returns. Correct...
by The Wizard
Sun Jul 08, 2018 8:23 am
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 93
Views: 8075

Re: What rate of return are you using for retirement projections?

I do not make/rely on projections any more. I am satisfied to receive what the entire market is sequenced to give me. My plan is working... Same here, basically; I use zero growth in my projections. I maintain a spreadsheet which projects my monthly/annual retirement income. I started this a year o...
by The Wizard
Sun Jul 08, 2018 8:05 am
Forum: Personal Consumer Issues
Topic: Retirees...what’s your lunch menus?
Replies: 54
Views: 4303

Re: Retirees...what’s your lunch menus?

Been trying to eat healthy and am tired of salad everyday. I am pre diabetic but otherwise in good shape. Suggestions for quick lunch menus please. I am ok wit meat, fats, cheese, etc...only avoid carbs. I think the following falls within the forum guidelines: I am diabetic, working my way back to ...
by The Wizard
Sun Jul 08, 2018 5:20 am
Forum: Investing - Help with Personal Investments
Topic: Mortgage payoff vs TIAA Traditional
Replies: 7
Views: 610

Re: Mortgage payoff vs TIAA Traditional

I wouldn't and didn't sacrifice long-term savings/investing for paying down a mortgage, or a car loan or anything else. You could take a dual approach of incrementing both the amount going to your 403(b) plans and the amount paid to mortgage each year. At age 50, you get an additional $6000 of "catc...
by The Wizard
Sat Jul 07, 2018 9:27 pm
Forum: Personal Consumer Issues
Topic: Retirees...what’s your lunch menus?
Replies: 54
Views: 4303

Re: Retirees...what’s your lunch menus?

Sometimes recently, I've been known to have a bowl of Jasmine rice (leftover usually) punched up with chili garlic sauce and a few splashes of soy sauce. Nothing else, just that. Yum... Probably not a great choice for a pre-diabetic... Dunno, but I'm not one and that wasn't the topic... The OP is, ...
by The Wizard
Sat Jul 07, 2018 9:19 pm
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5542

Re: Girls and investing

7 or 8 is way too young, yes...
by The Wizard
Sat Jul 07, 2018 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Checkbook balancing software?
Replies: 31
Views: 1621

Re: Checkbook balancing software?

Balancing a checking account is a thing of the past. I did it religiously in the 60s, 70s and 80s, but quit sometime in the mid 90s. The idea is to figure out why when the bank says your balance is $371.45 and your checkbook register says $361.45, why there's a difference. Nowadays I just verify tha...
by The Wizard
Sat Jul 07, 2018 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Is Social Security income included in MAGI for determination of medicare high income adjustment fee?
Replies: 9
Views: 1265

Re: Is Social Security income included in MAGI for determination of medicare high income adjustment fee?

Thank you for your responses. I had no idea that it would be 85% instead of 100%. The 15% that is tax exempt is analagous to your "basis" in IRA terms. It represents the approximate average % that a taxpayer made in after tax FICA contributions of the total expected benefits received in their lifet...
by The Wizard
Sat Jul 07, 2018 8:34 pm
Forum: Personal Consumer Issues
Topic: Retirees...what’s your lunch menus?
Replies: 54
Views: 4303

Re: Retirees...what’s your lunch menus?

iceport wrote:
Sat Jul 07, 2018 8:13 pm
The Wizard wrote:
Sat Jul 07, 2018 8:03 pm
Sometimes recently, I've been known to have a bowl of Jasmine rice (leftover usually) punched up with chili garlic sauce and a few splashes of soy sauce.
Nothing else, just that.
Yum...
Probably not a great choice for a pre-diabetic...
Dunno, but I'm not one and that wasn't the topic...
by The Wizard
Sat Jul 07, 2018 8:03 pm
Forum: Personal Consumer Issues
Topic: Retirees...what’s your lunch menus?
Replies: 54
Views: 4303

Re: Retirees...what’s your lunch menus?

Sometimes recently, I've been known to have a bowl of Jasmine rice (leftover usually) punched up with chili garlic sauce and a few splashes of soy sauce.
Nothing else, just that.
Yum...
by The Wizard
Sat Jul 07, 2018 7:45 pm
Forum: Personal Consumer Issues
Topic: Retirees...what’s your lunch menus?
Replies: 54
Views: 4303

Re: Retirees...what’s your lunch menus?

I really miss my Chinese lunch truck lunches back when I worked for a living in Cambridge. :( But nowadays, in retirement, lunch varies widely. Sometimes it's brunch since I had a big dinner previously. Other times it's leftovers before my show starts at 1:00. Lunch is really hit or miss in retireme...
by The Wizard
Sat Jul 07, 2018 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Should we contribute to Roth 403b?
Replies: 4
Views: 290

Re: Should we contribute to Roth 403b?

You might want to contribute a portion of your joint contribution to Roth 403(b) and the rest to traditional 403(b). How much to split, I can't say. And put together a projected income spreadsheet for retirement, listing all income streams. This can be used to help decide how to change the Roth 403(...
by The Wizard
Sat Jul 07, 2018 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Annuities and FIRE
Replies: 8
Views: 724

Re: TIAA Annuities and FIRE

I agree with Beth. Most choices in a TIAA 403(B) plan should just be considered tax deferred mutual funds during the accumulation phase. When you get close to retirement, you can decide how much of your TIAA accumulation it makes sense to "annuitize" for lifetime monthly income. Age 50 is young for ...
by The Wizard
Sat Jul 07, 2018 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Is Social Security income included in MAGI for determination of medicare high income adjustment fee?
Replies: 9
Views: 1265

Re: Is Social Security income included in MAGI for determination of medicare high income adjustment fee?

Only the taxable part of SS is included in your MAGI for that purpose.
This will vary from 0% to 85% of your total SS benefits depending on the amount of other income...
by The Wizard
Sat Jul 07, 2018 8:00 am
Forum: Personal Consumer Issues
Topic: How a credit card refund is applied?
Replies: 27
Views: 1742

Re: How a credit card refund is applied?

OP here. I called Fidelity cardmember service line and was told that the $1.5k refund would be applied to the last month's balance and I only needed to pay $1.5k for the entire balance. I did pay $1.5k. The new statement came and I did not see any interest charge. Correct. What I do is pay my outst...
by The Wizard
Fri Jul 06, 2018 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: How do normal people afford the Bay Area?
Replies: 48
Views: 5005

Re: How do normal people afford the Bay Area?

Best way is to buy a place in the 1970s or 80s.
If you wait to buy until now, you'll pay peak prices and taxes.
That's how it works...
by The Wizard
Fri Jul 06, 2018 2:57 am
Forum: Personal Consumer Issues
Topic: Cane Toad Hell: Any Remedies?
Replies: 21
Views: 1770

Re: Cane Toad Hell: Any Remedies?

Bring in some iguanas from South Florida and set them loose outside to eat the cane toads...
by The Wizard
Fri Jul 06, 2018 2:53 am
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 10948

Re: SS taken at 62 vs. 70, but measured from 70+

...One important thing is that after the maximum 85% of SS has been taxed additional SS benefits cause only a 42.5% increase in taxable income. So for instance if one is in the 22% tax bracket, additional SS will be subject to only a 9.35% marginal tax rate. [2] I disagree. Take a single taxpayer w...
by The Wizard
Thu Jul 05, 2018 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA conversion resulting MAGI over 170K
Replies: 27
Views: 2137

Re: Excess Roth IRA conversion resulting MAGI over 170K

The above example assumes that the taxes on the conversion are paid from the TIRA distribution. Results from the conversion are more positive if the taxes are paid from outside funds, and that is how most conversions are handled. Here is an interesting demo from Bob Keebler showing how results of a...
by The Wizard
Thu Jul 05, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 10948

Re: SS taken at 62 vs. 70, but measured from 70+

This bird in the hand attitude is a viable choice, but so is the more conservative and guaranteed increase in benefits that comes as a reward for patience. How is it "guaranteed"? Social Security website currently tells me they will have to reduce benefits to 75% in 2035... True. But 75% of age 70 ...