Search found 11469 matches

by The Wizard
Fri May 25, 2018 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Calculations - married, 10 years apart
Replies: 33
Views: 2941

Re: Social Security Calculations - married, 10 years apart

Don’t know if anyone else has mentioned this, but it is difficult to beat the 8% annual return (not compounded, admittedly) you get by delaying SS until 70. So the notion that you can come out ahead by claiming at 62 and investing the money is highly questionnable. Yes, and on top of that, one is a...
by The Wizard
Fri May 25, 2018 7:19 am
Forum: Investing - Help with Personal Investments
Topic: Expenses now are 50k a year...can I plan that for retirement?
Replies: 12
Views: 1072

Re: Expenses now are 50k a year...can I plan that for retirement?

Answer depends both on how many years remain until retirement and what you want to do in retirement.
More travel will cost more; I hear New Zealand is nice to visit.
And my new car purchase in 2015 cost around $50k and with inflation, will be more in the future.
Your mileage may vary...
by The Wizard
Thu May 24, 2018 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: I've never budgeted sucessfully
Replies: 52
Views: 3644

Re: I've never budgeted sucessfully

I use to do a budget and keep track of my expenses. I stopped doing this a while ago after my friend made a good argument against it. His argument is essentially the exercise takes too much time and is not needed unless one is spending too much. These days, I use a simpler approach. After I put awa...
by The Wizard
Wed May 23, 2018 8:22 pm
Forum: Investing - Theory, News & General
Topic: Morningstar's new posting rules
Replies: 16
Views: 1098

Re: Morningstar's new posting rules

I'm pretty much always logged into Mstar, so I don't see the problem...
by The Wizard
Tue May 22, 2018 2:20 pm
Forum: Personal Consumer Issues
Topic: ACL reconstruction surgery using allograft
Replies: 5
Views: 428

Re: ACL reconstruction surgery using allograft

Sorry, medical advice and anecdotes are not allowed here...
by The Wizard
Tue May 22, 2018 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: General question for someone with knowledge of real estate law
Replies: 8
Views: 583

Re: General question for someone with knowledge of real estate law

I suppose a listing agent can solicit offers for anything, but any buyer won't be able to acquire good title without the consent of both joint owners. Gill If one spouse is opposed to selling the property, there could be a problem when the RE agent delivers a buyer who is ready, willing, and able t...
by The Wizard
Tue May 22, 2018 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: How do you stop moving the goal posts.
Replies: 62
Views: 4640

Re: How do you stop moving the goal posts.

Warren Buffett is the epitome of moving the goal posts, though I'm sure he wouldn't phrase it that way.
Other folks don't have his durability and stamina and end up being quitters.
So the question for you: do you aspire to be the next Warren Buffett or do you want to be a quitter?
by The Wizard
Tue May 22, 2018 1:00 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA contributions during semi-retirement?
Replies: 14
Views: 664

Re: Roth IRA contributions during semi-retirement?

To expand the topic a bit, even when beyond age 59-1/2, it's good to contribute to a Roth IRA from part-time earnings; I did on two occasions. But in one case, combined retirement income and part-time work income put me over the direct Roth IRA contribution limit. So I did a backdoor Roth contributi...
by The Wizard
Tue May 22, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA contributions during semi-retirement?
Replies: 14
Views: 664

Re: Roth IRA contributions during semi-retirement?

veggivet wrote:
Tue May 22, 2018 9:52 am
Absolutely! I also convert as much as I can from my TIRA into my Roth to fill up the lowest tax bracket in an effort to reduce my RMDs which will start in 12 years.
This discussion is about CONTRIBUTIONS when working part-time later in life, not CONVERSIONS...
by The Wizard
Tue May 22, 2018 8:40 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

So that $300k is your planned AGI in your 60s with significant Roth conversions prior to starting SS and RMDs at 70.5? So what is your projected AGI after age 70.5 with zero further Roth conversions? If it's $270k or more, then OK. Otherwise, you may be paying too much tax upfront with overly large...
by The Wizard
Tue May 22, 2018 3:56 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

If you take 300,000 and divide it by 4 million you get 7.5%. that's pretty simple and I assume you understand that right? I then simply used a typical yearly growth of 7% which is considerably lower than the average 60/40 portfolio average returns. https://personal.vanguard.com/us/insights/saving-i...
by The Wizard
Tue May 22, 2018 2:57 am
Forum: Personal Finance (Not Investing)
Topic: How do I tell if Roth conversions are worth the trouble?
Replies: 76
Views: 5566

Re: How do I tell if Roth conversions are worth the trouble?

I would worry less about tax BRACKETS and more about taxable income and net income taxes owed. What I do is focus on my AGI, which is the dollar amount at the bottom of the front page on your form 1040. Using a spreadsheet, I project my annual income (AGI) for each year out to age 74 or so, starting...
by The Wizard
Mon May 21, 2018 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional/divorce/RMD questions
Replies: 12
Views: 723

Re: TIAA traditional/divorce/RMD questions

There is no QDRO yet, and before one is prepared I have to figure out how to structure it in the best way for me. Are you saying that I should have the accounts divided and then demand that TIAA reverse the RMD contract? Correctamundo. And have the judge sign it with that phrase included. TIAA tryi...
by The Wizard
Mon May 21, 2018 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional/divorce/RMD questions
Replies: 12
Views: 723

Re: TIAA traditional/divorce/RMD questions

The TIAA divorce manager said that nothing can be undone, that he has an RMD contract now and that is what will be divided. Also, the judge froze my ex-husband's accounts at TIAA several months ago (we had a lot of documentation then, even more now), yet they just sent him a distribution. The TIAA ...
by The Wizard
Mon May 21, 2018 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional/divorce/RMD questions
Replies: 12
Views: 723

Re: TIAA traditional/divorce/RMD questions

Additionally, I got divorced over two decades ago and QDRO'd a portion of my TIAA accumulation to my ex in a timely fashion, although TIAA took what seemed to be a long time once they got the paperwork. And TIAA should definitely be able to undo the RMD contract that your ex needed to set up. The co...
by The Wizard
Mon May 21, 2018 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional/divorce/RMD questions
Replies: 12
Views: 723

Re: TIAA traditional/divorce/RMD questions

Sounds like your ex is in Contempt of Court.
(I am not a lawyer.)
Have your lawyer do what your state requires to get him back into court to put more FEAR into him.
And have him pay your extra legal fees while you're at it...
by The Wizard
Mon May 21, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

You might be in a higher tax bracket, or a lower tax bracket. It is impossible for us to predict. *Sigh* What if someone, filing single, has taxable income of $39,000 this year, putting them in the new 22% Federal bracket. That person retires in a year or two and then amazingly has taxable income o...
by The Wizard
Mon May 21, 2018 1:30 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

By the way anyone know what the magic number that pretax 401ks stop making sense? That would be really helpful. :wink: There is no magic number. It depends on your individual situation, including your AGI during your latter working years. If that AGI was $70k, the answer would be different than for...
by The Wizard
Mon May 21, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

[*] a If you'll be in the same tax bracket during retirement as when you were working, Roth conversions are unlikely to result in tax savings. The savings may not be huge but they come from levelling your income, before and after age 70.5, along with possibly NOT being in an even higher Medicare IRM...
by The Wizard
Mon May 21, 2018 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Almost half of US families can't afford basics like rent and food
Replies: 19
Views: 1617

Re: Almost half of US families can't afford basics like rent and food

This doesn't sound like a personal question.
Is the OP in this situation where paying for food and shelter is a significant problem?
by The Wizard
Sun May 20, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate
Replies: 67
Views: 3473

Re: TIAA Real Estate

There was certainly a lot of doom-and-gloom over at Mornginstar, and people seemingly bailing out right and left starting last year, so it will be interesting to see how things turn out going forward. I was one of the partial bailers, moving a part of my accumulation mode TREA into restricted Trad ...
by The Wizard
Sun May 20, 2018 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate
Replies: 67
Views: 3473

Re: TIAA Real Estate

It has been growing at close to the 4% level over the past year, but in the past few months, it has picked up to closer to 6% (0.5% per month). JUst did the math on this. as far as i can figure for 2018 (i.e. since year end) the fund is growing at an annualized rate of 4.5% I monitor month by month...
by The Wizard
Sun May 20, 2018 7:06 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Are there professions today where social security + inflation adjusted pension will be in the in the same tax bracket? Yes, there are a lot of government workers where SS + inflation adjusted pension will put them into the same tax bracket. And some non government workers with large 403(b) or 401(k...
by The Wizard
Sun May 20, 2018 6:59 am
Forum: Personal Finance (Not Investing)
Topic: SS Benefits and Medicare Part B Premiums Question
Replies: 8
Views: 791

Re: SS Benefits and Medicare Part B Premiums Question

I don't know the exact answer, but it likely depends on when your last quarterly payment is and which months that covers. I went through this transition two years ago and the SS/Medicare crew handled things just fine without me doing anything. Also, when I started Medicare at 65, my first quarterly ...
by The Wizard
Fri May 18, 2018 6:14 am
Forum: Personal Consumer Issues
Topic: Chase CS playing games w/me
Replies: 28
Views: 2729

Re: Chase CS playing games w/me

Typical mortgages have you paying a constant dollar amount each month with a high percentage going to interest in the early years and an increasing percentage going to principal as time goes on. Take an example with a $1000 regular monthly payment that's been going on for a while and is now down to ...
by The Wizard
Fri May 18, 2018 6:04 am
Forum: Personal Consumer Issues
Topic: Chase CS playing games w/me
Replies: 28
Views: 2729

Re: Chase CS playing games w/me

https://imgur.com/E63QlSa https://imgur.com/3VotRAB I attempted to paste these pics into the post directly but that was taking too much time and had too many 'red letters' popping that weren't allowing it. One is my latest payment with the interest included, the other is one prior principal payment...
by The Wizard
Fri May 18, 2018 4:19 am
Forum: Personal Consumer Issues
Topic: Chase CS playing games w/me
Replies: 28
Views: 2729

Re: Chase CS playing games w/me

If they are doing true continuous or even daily compounding of interest, then it doesn't matter. What you have is a Mortgage Balance that grows slightly each day. And the next payment of any amount reduces the current Mortgage Balance by exactly that amount. But you want to verify that they are doin...
by The Wizard
Fri May 18, 2018 3:29 am
Forum: Personal Consumer Issues
Topic: Chase CS playing games w/me
Replies: 28
Views: 2729

Re: Chase CS playing games w/me

Interest accumulates daily. All payments pay off accumulated interest first, then principal. So, when was your last regular payment and how many days have elapsed? Only way to apply entire extra amount to principal reduction is to add it on top of a regular payment. Sounds like their CS person was i...
by The Wizard
Thu May 17, 2018 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for a custom retirement savings calculator for Airline pilot Direct contribution
Replies: 15
Views: 1214

Re: Looking for a custom retirement savings calculator

We could put together a spreadsheet, yes.
But let's say most of that contribution goes into an S&P 500 index fund.
What will that be worth in five years?
Do you see the problem?
by The Wizard
Thu May 17, 2018 5:49 pm
Forum: Investing - Theory, News & General
Topic: What's the ideal safe retirement net worth target?
Replies: 252
Views: 45921

Re: What's the ideal safe retirement net worth target?

A pension is an Income Stream asset, not a Net Worth portfolio asset.
Same with SS and Immediate Annuties.

When you are close to or in retirement, you should be analyzing in the Income Stream domain. Don't fiddle with trying to convert pensions back to their asset equivalents...
by The Wizard
Thu May 17, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Having trouble figuring out expected expenses in retirement
Replies: 37
Views: 2536

Re: Having trouble figuring out expected expenses in retirement

To be frank, even folks who are just 5 years away from retirement have no firm handle on their retirement expenses. Expecting to have that numbers 20 years earlier is just foolish. Perhaps impractical rather than foolish. As you get within five years of cutting loose, the dollar numbers become more...
by The Wizard
Thu May 17, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

It's more accurate to say that some high accumulators will have higher AGI, higher taxable income, and higher Federal income tax liability in retirement than when working. I hope nobody is claiming that something is wrong with that! Nothing wrong with it and in some cases the situation can easily c...
by The Wizard
Thu May 17, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

To many Americans with less savings for retirement, their projected retirement tax bracket will be lower. To a lot of BH, due to their sizable savings, their future tax bracket could be higher with addition SS income and less deduction (dependent, mortgage interest. ect). I think we focus too much ...
by The Wizard
Thu May 17, 2018 2:30 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

So why do people keep on bringing the so called elephant in the room aka social security taxes whenever we are discussing retirement? After working for 40+ years, you have pretty much accepted the fact that you make money, you pay taxes. The discussion always seems to imply that gummit takes 85% of...
by The Wizard
Thu May 17, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

By the way the three examples I listed earlier came from one of the highly respected blogger Michael Kitces. If somebody of his caliber...gets the term AGI wrong and says to add taxable SSI to AGI.... You are correct: he is somewhat loose in the usage of "AGI" in that article. SSI is Supplemental S...
by The Wizard
Thu May 17, 2018 1:53 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

If I make ten million dollars this year I may never have to work again, and will be in a lower tax bracket indefinitely. Not true; If I make ten million dollars this year, and I will be making fifteen million dollars next year, and twenty year after next etc why I would I stop working? Perhaps your...
by The Wizard
Thu May 17, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

...If I make ten million dollars this year I may never have to work again, and will be in a lower tax bracket indefinitely. By your definition I am mediocre. By my definition I have reached my goal of becoming financially independent. Not really. Goal is/should be to have more safely spendable mone...
by The Wizard
Thu May 17, 2018 1:44 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I think most of that has to do with the inability to retire at a higher income than when they were working. Personally, I targeted 140% of my pre-retirement income as my retired income as I knew I wanted to travel. Right. This is why I generally recommend that folks consider their (reasonably consi...
by The Wizard
Thu May 17, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

So why do people keep on bringing the so called elephant in the room aka social security taxes whenever we are discussing retirement? After working for 40+ years, you have pretty much accepted the fact that you make money, you pay taxes. The discussion always seems to imply that gummit takes 85% of...
by The Wizard
Thu May 17, 2018 1:36 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I put money into my tax deferred 403(b) account for 40 years with a hefty "match". I maxed my contributions to this account in my latter working years, thus keeping me in the 25% marginal bracket. Then in retirement, I annuitized a portion of that income to get higher lifetime income than a simple ...
by The Wizard
Thu May 17, 2018 1:15 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

...Google gave me the following examples. Does this mean AGI (Adjusted Gross Income) does NOT include SS income? I hope there is NO double counting of SS income! AGI definitely includes a percentage of your SS income on the front of form 1040. My percentage is 85%. Other's will be lower depending o...
by The Wizard
Thu May 17, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

...My wife and I make about $200k together combined. We spend $72,000 a year. We have zero pensions. When we retire, we will be pulling $72,000 a year from our investments, so we will be paying tax on $72,000 of "income", instead of $200,000. We will be in a lower tax bracket in retirement. That's ...
by The Wizard
Thu May 17, 2018 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA automatically determined/updated annually?
Replies: 6
Views: 535

Re: IRMAA automatically determined/updated annually?

One Ping wrote:
Thu May 17, 2018 12:29 pm

... right?

One Ping
Maybe.
The IRMAA tiers are supposed to resume cost of living adjustments starting in 2020.
I don't know what that means yet as regards one's MAGI for 2018 and 2019...
by The Wizard
Thu May 17, 2018 5:51 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 464
Views: 24183

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I put money into my tax deferred 403(b) account for 40 years with a hefty "match". I maxed my contributions to this account in my latter working years, thus keeping me in the 25% marginal bracket. Then in retirement, I annuitized a portion of that income to get higher lifetime income than a simple S...
by The Wizard
Wed May 16, 2018 4:02 pm
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 127
Views: 9020

Re: The front page is ugly

...4) Do you have any figures on the relative numbers of forum readers using desktops versus mobile devices? I have a decent smartphone with LTE. But the forum is something I us sitting down at home on a desktop, not while strolling around. 5) Actually, I just tried the home page on my smartphone--...
by The Wizard
Wed May 16, 2018 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Why can't you rollover a retirement account into another one that you no longer work at?
Replies: 33
Views: 1747

Re: Why can't you rollover a retirement account into another one that you no longer work at?

I'll just mention that after I retired, I did some part-time work one year and was able to roll my IRA funds at Vanguard into my 403(b) from my former employer, thus clearing the way to do a backdoor Roth contribution. So sometimes an employer plan can be rolled into after you separate from service...
by The Wizard
Wed May 16, 2018 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Do I tell Social Security I retired?
Replies: 32
Views: 3937

Re: Do I tell Social Security I retired?

Since once upon a time SS benefits were tax free at the Federal level, I think it may be short-sighted to consider 85% of benefits being taxable to be a discount, compliments of Congress...
by The Wizard
Wed May 16, 2018 8:04 am
Forum: Personal Consumer Issues
Topic: Why this problem never gets fixed [Inflated medical product prices]
Replies: 33
Views: 2200

Re: Why this problem never gets fixed

Looks like a rant to me.
The mods don't look kindly on rants.
Nonetheless, I have no answer to your question...
by The Wizard
Wed May 16, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Do I tell Social Security I retired?
Replies: 32
Views: 3937

Re: Do I tell Social Security I retired?

Flymore wrote:
Tue May 15, 2018 7:02 pm
...If you wait till 70, much of SS is taxes away because of RMD, no?

thanks.
You might want to clarify your question.
85% of my SS is subject to Federal income tax, both before and after I start RMDs. But situations vary considerably...
by The Wizard
Tue May 15, 2018 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?
Replies: 71
Views: 10453

Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Fixed annuities are principle protected as long as you stick below the state-guarantee limits. So for $1M, you could open a fixed annuity in 4 different states. But whether the rates are 4% after-tax, I don't know. I'm not sure you and the OP are using the term "principal protected" in the same way...