Search found 11314 matches

by The Wizard
Fri Apr 20, 2018 5:03 am
Forum: Investing - Help with Personal Investments
Topic: Are you keeping more in cash?
Replies: 30
Views: 3802

Re: Are you keeping more in cash?

I am. I leave the ones that are for my expenses in my bank account but the ones that I want to save, I store at a secret place in my home. I also keep in cash the ones I spend for monthly groceries, clothes, etc. I find myself spending less when I pay cash rather then when I pay with a card which i...
by The Wizard
Thu Apr 19, 2018 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security retirement and working
Replies: 5
Views: 732

Re: Social Security retirement and working

jej63338 wrote:
Thu Apr 19, 2018 1:14 pm
I am 64 and just filed for SSI retirement...
SSI is Supplemental Security Income which is welfare for really poor people.
Perhaps you meant SS which is Social Security?
by The Wizard
Thu Apr 19, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Are you keeping more in cash?
Replies: 30
Views: 3802

Re: Are you keeping more in cash?

No more cash for me, five years into retirement at age 68. Now I will say that a few years ago I increased the amount I try to keep in my checking account from around $5000 up to as much as $10,000. This allows me to buffer increased travel expenses better. Excess funds beyond $10k get moved to my t...
by The Wizard
Thu Apr 19, 2018 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Once retired, tools to determine available spend?
Replies: 18
Views: 1676

Re: Once retired, tools to determine available spend?

The verb "spend" is part of the problem with withdrawal questions of this sort. I suppose if all of your portfolio is in taxable accounts, then it's close to the right verb since income tax considerations can be less. But for those of us with large tax deferred portfolios, the issue is more cash flo...
by The Wizard
Thu Apr 19, 2018 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Once retired, tools to determine available spend?
Replies: 18
Views: 1676

Re: Once retired, tools to determine available spend?

Toons wrote:
Thu Apr 19, 2018 7:17 am
Retired.
We spend...
less than we have.
It works.
For Us.
:happy
Ok, but if you "have" $1,000,000 at start of retirement and plan to "spend" just $100,000 of it each year going forward, you could run into problems with nest egg depletion...
by The Wizard
Thu Apr 19, 2018 2:42 am
Forum: Personal Finance (Not Investing)
Topic: Once retired, tools to determine available spend?
Replies: 18
Views: 1676

Re: Once retired, tools to determine available spend?

Perhaps you need a more robust retirement income strategy. I have retirement income hitting my checking account three times a month whether I need it or not, SS plus automatic withdrawals from tax deferred. If checking balance gets too large, I move excess to taxable investment account. This is quit...
by The Wizard
Wed Apr 18, 2018 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI and Medicare Premium
Replies: 10
Views: 1157

Re: MAGI and Medicare Premium

...And filing TY2017 early will not get it to SS early; the IRS does a batch dump to SS much later this year that will include all returns filed by today's deadline. In mid February, I sent a photocopy of my just-efiled 2017 Form 1040 to the SSA along with the proper SSA-44 form to document my Life...
by The Wizard
Wed Apr 18, 2018 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable account
Replies: 5
Views: 913

Re: Taxable account

Depends on what GAB is...
by The Wizard
Wed Apr 18, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: Investment question...
Replies: 10
Views: 514

Re: Investment question...

The seven year difference makes this little trickier to assess: what will the $200k sum be worth in seven years, especially since VTSAX is more volatile than a guaranteed fund. Let's say a 50% gain over seven years, so $300k. $16,200 annual payout is just 5.4% of $300k, which isn't too good, hence, ...
by The Wizard
Wed Apr 18, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: How to handle former employer’s retirement plan
Replies: 23
Views: 1606

Re: How to handle former employer’s retirement plan

My new plan is with TIAA so I would still have access to all of this, no? "Access to both flavors of Traditional, 3.25% and 4.0% presently" I get this with my current plan "Access to TREA" I don't know what that is "Access to better lifetime annuitization options than other insurance companies." "I...
by The Wizard
Wed Apr 18, 2018 7:49 am
Forum: Investing - Help with Personal Investments
Topic: How to handle former employer’s retirement plan
Replies: 23
Views: 1606

Re: How to handle former employer’s retirement plan

Would rolling it into my Vanguard IRA be a wise option? Some of it, perhaps. I'm also a TIAA/Vanguard investor but with about 90% of assets on the TIAA side. I also have R3 and institutional funds, so low ERs for TIAA. Vanguard holds funds converted to Roth IRA, since TIAA has high ERs for IRAs. Va...
by The Wizard
Wed Apr 18, 2018 3:21 am
Forum: Investing - Help with Personal Investments
Topic: How to handle former employer’s retirement plan
Replies: 23
Views: 1606

Re: How to handle former employer’s retirement plan

You shouldn't be thinking about withdrawing money from a tax sheltered 403(b) plan until you are retired. It should be left to grow and you should have an emergency fund of some size elsewhere to cover contingencies.
So I don't see that point being particularly meaningful...
by The Wizard
Tue Apr 17, 2018 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Trad, RMDs and working pastt age 70 and 1/2
Replies: 9
Views: 630

Re: TIAA Trad, RMDs and working pastt age 70 and 1/2

Only the qualified retirement plans such as 401(k) or 403(b) are exempt from RMD after age 70 1/2 while you are still working for the plan sponsor (company or school). Once you are not employed by the company any time during the year, then the exempt no longer applies and RMD has to be taken for th...
by The Wizard
Tue Apr 17, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Trad, RMDs and working pastt age 70 and 1/2
Replies: 9
Views: 630

Re: TIAA Trad, RMDs and working last age 70

True basically, yes.
But you have that RMD liability starting January 1 of the YEAR you turn 70.5, or the year following your termination of employment with the relevant employer.
This detail matters in certain cases...
by The Wizard
Tue Apr 17, 2018 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 69
Views: 4858

Re: Help me explain why pre-tax investing can help when retiring in same bracket

To the original question, putting more into traditional pre-tax accounts is better when tax rates are the same since it's always preferable to delay paying taxes in that situation. Why would it be preferable? At best, traditional ties with Roth in that situation due to the commutative property of m...
by The Wizard
Tue Apr 17, 2018 3:37 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 69
Views: 4858

Re: Help me explain why pre-tax investing can help when retiring in same bracket

To the original question, putting more into traditional pre-tax accounts is better when tax rates are the same since it's always preferable to delay paying taxes in that situation. And we mean the additional funds put away beyond the amount needed to get you to the same marginal bracket in retiremen...
by The Wizard
Sun Apr 15, 2018 11:58 am
Forum: Personal Consumer Issues
Topic: What percentage of you 2017 income can you account for?
Replies: 49
Views: 3192

Re: What percentage of you 2017 income can you account for?

We don't track anything, really. We put away plenty of money before our paychecks even hit our account and then spend what's left. I could look back at credit card receipts, but there's really no reason to at this point until we need to increase our cash flow. So, zero percent i suppose. Same here....
by The Wizard
Fri Apr 13, 2018 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 112
Views: 10946

Re: Divs and Cap Gains are killing me

It would be nice if the OP would distinguish between Capital Gains Distributions (CGDs) from certain mutual funds and Capital Gains, either ST or LT from selling securities of any type...
by The Wizard
Thu Apr 12, 2018 6:35 am
Forum: Investing - Help with Personal Investments
Topic: “Fund bucket” for new car?
Replies: 14
Views: 1089

Re: “Fund bucket” for new car?

No individual "buckets" for us. We have one emergency fund that is large enough to handle car purchases, etc. This may be oversimplifying things, but "buckets" of savings, I mostly see as needed by the undisciplined. Right. No need for separate containers or envelopes of savings for different purpo...
by The Wizard
Wed Apr 11, 2018 8:38 pm
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 7964

Re: Why not annuitize most of portfolio?

"At the same time we are on the front of what can be many disruptive measures that could alter life expectancy," I would think insurance companies can hedge annuity and increased life span with corresponding Life Insurance. Seems it would be the other side of the coin so to speak. Actuaries get pai...
by The Wizard
Wed Apr 11, 2018 7:40 pm
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 7964

Re: Why not annuitize most of portfolio?

MathWizard wrote:
Wed Apr 11, 2018 7:17 pm
Wanting to annuitize is a good argument for delaying SS benefits.
We've been over this already.
Max SS benefit at 70 is way less than $4000/month.
If you need $10,000/month to carry on, then you gotta look elsewhere as well.
Especially if you retire well before age 70...
by The Wizard
Wed Apr 11, 2018 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: HELP..not sure what to do at 55 YOA
Replies: 21
Views: 2753

Re: HELP..not sure what to do at 55 YOA

Get that savings account up to mid seven figures and I don't see any problem...
by The Wizard
Wed Apr 11, 2018 4:33 pm
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 7964

Re: Why not annuitize most of portfolio?

stemikger wrote:
Wed Apr 11, 2018 3:51 pm
The best annuity I know is social security. Take it later.
Right.
But some of us are Big Spenders in retirement and need 2x or 3x what SS provides, and quite a few years earlier.
Hence, this discussion...
by The Wizard
Wed Apr 11, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2674

Re: SPIA Return - Am I calculating this correctly?

Now that the OP's question has been explained properly, the issue of whether to go through with it can be addressed. If the OP has sufficient investment assets, it might work better over the 15 years just to withdraw $4000 per month from a 50/50 (or thereabouts) portfolio. I'd recommend at least a 2...
by The Wizard
Tue Apr 10, 2018 7:55 pm
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 7964

Re: Why not annuitize most of portfolio?

GibsonL6s wrote:
Tue Apr 10, 2018 6:53 pm
...Immediate Annuity shows a $100,000 annuity for life with NO refund for a 70 YO male at $613 a month....
Refund?
What sort of REFUND are you talking about?
Are you sure you understand the concept of annuitization?
by The Wizard
Tue Apr 10, 2018 5:15 pm
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 7964

Re: Why not annuitize most of portfolio?

So basically, we're against pensions as well?
Instead of a pension of $70,000 per year, I should quit that and take a lump sum with a 4% swr?
I prefer a hefty monthly income check, but your mileage may vary...
by The Wizard
Tue Apr 10, 2018 11:38 am
Forum: Investing - Theory, News & General
Topic: Retirees: Who's increasing their equities as they age?
Replies: 74
Views: 5107

Re: Retirees: Who's increasing their equities as they age?

I retired in 2013 with seven years until starting SS at age 70. I maintained a 50/50 AA for the first four years but last year decided not to rebalance for a while and to let my AA drift up to 60% stocks for my new target. When I start full SS in 23 months, my income should be reasonably in excess o...
by The Wizard
Tue Apr 10, 2018 8:10 am
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 7964

Re: Why not annuitize most of portfolio?

Thus far I see discussion, advice, but not anyone answering the questions I asked. Again, here they are: 1. Has anyone here done this or have close experience with those that had? (OK, some said they annuitized a small portion) 2. Does anyone have actual links or knowledge of companies that went ou...
by The Wizard
Sun Apr 08, 2018 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Higher total income in retirement than during working?
Replies: 51
Views: 4453

Re: Higher total income in retirement than during working?

Having difficulty posting for some reason . . . probably something I said ;-) My retirement goal: Have enough INCOME regardless of source to fund the lifestyle I want for as long as I'm drawing breath. My current income goes to: - Fun, travel, bills and repairs, transport, mortgage, pre-pay mortgag...
by The Wizard
Sun Apr 08, 2018 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Higher total income in retirement than during working?
Replies: 51
Views: 4453

Re: Higher total income in retirement than during working?

Good questions here. I've often said that targeting the same Net Income in retirement as your latter full-time working years is a good starting point for retirement planning. Net Income in this case is gross income minus 401(k) or 403(b) contributions, minus Roth IRA contributions and minus any Long...
by The Wizard
Sat Apr 07, 2018 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Is Stock Market the only source of income in retirement ?
Replies: 21
Views: 2258

Re: Is Stock Market the only source of income in retirement ?

...Annuities are not necessary or helpful for those with excess wealth... I'm not sure this is true. It's quite possible for people in the Green Zone to annuitize a certain amount which, when combined with SS, provides monthly income that meets or exceeds expenses. This allows the retiree to have a...
by The Wizard
Sat Apr 07, 2018 7:06 am
Forum: Personal Consumer Issues
Topic: "The Secret"
Replies: 19
Views: 2591

Re: "The Secret"

Seems like some sort of religious cult thing from 2 minutes of link browsing.
No thank you...
by The Wizard
Sat Apr 07, 2018 6:40 am
Forum: Personal Finance (Not Investing)
Topic: Is Stock Market the only source of income in retirement ?
Replies: 21
Views: 2258

Re: Is Stock Market the only source of income

Majority of my retirement income derives from immediate annuities, both fixed and variable.
And the part deriving from my portfolio isn't "stock market" exactly since my AA is around 60% stocks...
by The Wizard
Sat Apr 07, 2018 6:29 am
Forum: Investing - Help with Personal Investments
Topic: Current Thinking About TIAA Real Estate?
Replies: 18
Views: 1052

Re: Current Thinking About TIAA Real Estate?

Still wait and see mode for TREA right now. I don't compare it to REIT funds, so forget that. I did sell a modest portion of TREA a few months back and moved the $$ to Trad paying 4.0%. TREA has been picking up slightly the past few weeks, which matters to me since part of my annuity income is based...
by The Wizard
Thu Apr 05, 2018 8:14 am
Forum: Investing - Theory, News & General
Topic: Reinvest dividends or sweep to settlement account
Replies: 38
Views: 4659

Re: Reinvest dividends or sweep to settlement account

Typically, I reinvest dividends in retirement accounts while letting them accumulate in taxable accounts. Reinvesting too many dividends throughout the year can be a small hassle at tax time in taxable accounts, since each dividend reinvestment is a new purchase of shares. Same thing here. I transf...
by The Wizard
Wed Apr 04, 2018 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: senior investing
Replies: 26
Views: 1686

Re: senior investing

I'm thinking the OP will benefit from getting a paying job for the next few years, regardless of his current age...
by The Wizard
Tue Apr 03, 2018 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity w guaranteed 5-6% return [payout]?
Replies: 50
Views: 4445

Re: Annuity w guaranteed 5-6% return [payout]?

At what age is mortality credit more important then the current interest rates of Treasuries for purchasing a SPIA? Paul The concept of "mortality credits" is misunderstood. The payments of an non-inflation adjusted immediate annuity are fixed at the time of issue. A still living annuitant doesn't ...
by The Wizard
Tue Apr 03, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity w guaranteed 5-6% return [payout]?
Replies: 50
Views: 4445

Re: Annuity w guaranteed 5-6% return?

HomerJ wrote:
Tue Apr 03, 2018 3:20 pm

...The downside is my kids get half as much as they would in inheritance. Because $500k is just GONE. But I get to spend more now (maybe even on the kids!) while still alive.
I have adult kids as well.
But they are not Number One.
Somebody else is...
by The Wizard
Tue Apr 03, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity w guaranteed 5-6% return [payout]?
Replies: 50
Views: 4445

Re: Annuity w guaranteed 5-6% return [payout]?

At what age is mortality credit more important then the current interest rates of Treasuries for purchasing a SPIA? Paul You could perhaps (?) try to get a feel for this by playing with www.immediateannuities.com and plugging in different start ages, for the same starting date, the latter to try to...
by The Wizard
Tue Apr 03, 2018 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity w guaranteed 5-6% return [payout]?
Replies: 50
Views: 4445

Re: Annuity w guaranteed 5-6% return?

As noted, TIAA tends to have better lifetime immediate annuity payout rates than most other insurance companies, for those of us who have access to it. I annuitized an additional amount one year ago at age 67 and got a 7.04% payout rate, with 10year guarantee. This was a combination of TIAA Traditi...
by The Wizard
Tue Apr 03, 2018 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Annuity w guaranteed 5-6% return [payout]?
Replies: 50
Views: 4445

Re: Annuity w guaranteed 5-6% return?

Dottie57 wrote:
Tue Apr 03, 2018 11:18 am
Just a note about inflation. Maybe purchasing smaller SPIA's several years apart would help with inflation considerations.
Yes, it's better (cheaper) to do it yourself this way rather than paying the insurance company to cover this risk...
by The Wizard
Tue Apr 03, 2018 6:56 am
Forum: Investing - Help with Personal Investments
Topic: Annuity w guaranteed 5-6% return [payout]?
Replies: 50
Views: 4445

Re: Annuity w guaranteed 5-6% return?

As noted, TIAA tends to have better lifetime immediate annuity payout rates than most other insurance companies, for those of us who have access to it. I annuitized an additional amount one year ago at age 67 and got a 7.04% payout rate, with 10year guarantee. This was a combination of TIAA Traditio...
by The Wizard
Mon Apr 02, 2018 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Question
Replies: 7
Views: 423

Re: Roth Conversion Question

Your assumptions are correct, provided you take your entire RMD first each calendar year before doing any Roth conversions. But why drive your tax bill higher after age 70? And possibly your Medicare IRMAA tier as well? I'm 68 and doing modest Roth conversions the past few years. But once 2020 gets ...
by The Wizard
Fri Mar 30, 2018 12:31 pm
Forum: Investing - Theory, News & General
Topic: What’s the magic savings rate???
Replies: 50
Views: 6189

Re: What’s the magic savings rate???

Saving 30% of gross income is the magic savings rate...
by The Wizard
Fri Mar 30, 2018 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Annuity at 80?
Replies: 9
Views: 1090

Re: Annuity at 80?

...Since the annuity is purchased inside a traditional IRA, I believe that 100% of the payments are treated as taxable income (double check this before any purchase). I also believe that the payments apply to RMD requirements. The lifetime annuity payout satisfies the RMD for the annuitized sum onl...
by The Wizard
Thu Mar 29, 2018 2:22 am
Forum: Personal Finance (Not Investing)
Topic: Reduce future RMD, Manage Retirement Income and Taxes
Replies: 10
Views: 1187

Re: Reduce future RMD, Manage Retirement Income and Taxes

Maybe I'm simplistic. I would rather earn more in the IRA and then use a portion of that increase to pay the taxes. The goal should not be to minimize taxes; it should be to maximize after tax results. Yes, focus on this. We need to be aware that higher taxes will be due on higher income in retirem...
by The Wizard
Thu Mar 29, 2018 2:04 am
Forum: Investing - Help with Personal Investments
Topic: IRMAA and Roth Conversions
Replies: 21
Views: 1117

Re: IRMAA and Roth Conversions

...Should I be allowing IRMAA to limit our Roth Conversions? Has anyone here faced similar decisions and how did you decide what to do? There are a lot of unknowns and moving parts. Thank you! It depends on your projected income (MAGI) for age 70 and beyond when RMDs and all other retirement income...
by The Wizard
Thu Mar 29, 2018 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Printing out a ten thousand page form 8949 for the IRS?
Replies: 48
Views: 4943

Re: Printing out a ten thousand page form 8949 for the IRS?

So do you break even financially most years after all expenses are accounted for?
Or is your experience closer to that Trade Like Chuck ad on CNBC where he starts with an initial stake and increases it by a factor of 100?
by The Wizard
Wed Mar 28, 2018 2:04 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Do you spend all your "income"?
Replies: 46
Views: 4252

Re: Retirees: Do you spend all your "income"?

...If you are withdrawing from an account (taxable or otherwise), go ahead and call it income. I don't care. In fact, a 4% SWR would be my income in retirement, regardless of funding source. Note that if this were a ROTH, no tax would be due, but I've got cash ("income") to spend. RMDs do not force...
by The Wizard
Wed Mar 28, 2018 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: How Do You Value Your Home for Net Worth Purposes?
Replies: 150
Views: 8998

Re: How Do You Value Your Home for Net Worth Purposes?

You have to begin by asking why you want to know your net worth and what you will use the number for. I've never been able to figure out any actual use for it other than to make me feel good and/or have an answer if someone asks me my net worth. Which I don't think has ever happened, in fact... I a...