Search found 11179 matches

by The Wizard
Mon Feb 19, 2018 12:57 pm
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 97
Views: 7719

Re: Retirees: The common sense withdrawal method

Very few people who expect to get $35,000 from Social Security by delaying benefits to age 70 have portfolios of $1,500,000 or more at age 60. How is this commonsense advice? That sized portfolio at age 60 couldn't apply to more than 5% of the population who expect to get $35,000/yr from SS at age ...
by The Wizard
Mon Feb 19, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: What does it mean to be "in cash"?
Replies: 17
Views: 988

Re: What does it mean to be "in cash"?

It means that person is the worst type of Market Timer.
A million dollars, all in money market funds, where previously they were $600,000 in stocks, possibly individual stocks...
by The Wizard
Mon Feb 19, 2018 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversions to shrink RMDs
Replies: 15
Views: 941

Re: Roth conversions to shrink RMDs

It's $85k for singles. Hm.. ok I looked up the premiums: $85,000 - $107,000: +$642/year $107,000 - $133,500: +1596 year $133,500 - $160,000: +$4180/year So converting $200,000 (4 years until RMD, $50k per year to stay under the $133,500) would be her tax rate of 24% plus 3.2% in premium increases. ...
by The Wizard
Mon Feb 19, 2018 7:10 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversions to shrink RMDs
Replies: 15
Views: 941

Re: Roth conversions to shrink RMDs

She needs to consider what her modified adjusted gross income (MAGI) will be. If she exceeds $170k MAGI, Medicare Part B charges a premium. It still may be worth it, but she needs to figure out what the impact of the premium would be. An alternative, which I have used, is to take a Roth conversion ...
by The Wizard
Mon Feb 19, 2018 12:09 am
Forum: Personal Consumer Issues
Topic: Martha’s Vineyard: Is 2 weeks too long of a vacation there?
Replies: 12
Views: 1292

Re: Martha’s Vineyard: Is 2 weeks too long of a vacation there?

Answer might depend on your total vacation/travel budget for the year, both time and money. I travel 12 weeks or more per year in retirement now. Back when I worked for a living, I had four weeks vacation, so I had to balance competing desires. So I'm more likely to do longer trips now compared to b...
by The Wizard
Fri Feb 16, 2018 9:24 am
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 97
Views: 7719

Re: Retirees: The common sense withdrawal method

No. "Common Sense" withdrawals are ill defined and not appropriate for some folks. What I've done is set up lifetime annuities which cover the bulk of my retirement income needs. I am withdrawing around 4% of my tax deferred 403(b) balance each year in lieu of SS, but the bulk of that is actually a ...
by The Wizard
Fri Feb 16, 2018 3:42 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA - Trading
Replies: 9
Views: 748

Re: Roth IRA - Trading

I use my daughter’s Roth IRA account strictly for trading. Since it’s a small account, I need to grow it aggressively, but I will put a limit on how much money I will accept for trading. I don’t want to lose her hard earn money. I'm not sure this a wise idea. Do you have power of attorney or other ...
by The Wizard
Thu Feb 15, 2018 4:54 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Salary requirements
Replies: 6
Views: 1245

Re: Retirement Salary requirements

I aimed for roughly the same AGI in the early years of retirement as in the latter years of employment. My retirement began in 2013 and my income has increased every year, due to things like favorable market returns, starting Divorced Spouse SS, and doing an additional modest annuitization. About $2...
by The Wizard
Wed Feb 14, 2018 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: Did you learn anything from the market correction?
Replies: 160
Views: 10713

Re: Did you learn anything from the market correction?

Our first market correction (10% decline from peak) after an 8 year bull run There was a correction in 2010 (-16%), a correction in 2011 (-19%), another correction in 2011 (-9.8%), one in 2012 (-9.9%), one in 2015 (-12%), and another one in 2015-2016 (-13%). (All based on the S&P 500.) So 6 correct...
by The Wizard
Tue Feb 13, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Did you learn anything from the market correction?
Replies: 160
Views: 10713

Re: Did you learn anything from the market correction?

I'm just glad this correction is over.
Alrighty, onwards and upwards!
by The Wizard
Tue Feb 13, 2018 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Too late for 2017 tIRA to Roth conversions?
Replies: 2
Views: 185

Re: Too late for 2017 tIRA to Roth conversions?

Nope. 2017 is gone for good, except for contributions of IRA money up to $5500 or $6500.

For 2018, do your planning as the year rolls on and do any desired Roth conversions by the end of December...
by The Wizard
Mon Feb 12, 2018 7:24 pm
Forum: Personal Consumer Issues
Topic: What big item (>20k) are you saving up for?
Replies: 109
Views: 7620

Re: What big item (>20k) are you saving up for?

I need to buy a new Mustang before long.
My present one is a 2008 bought new, but with 100k on the odometer.
So I'm putting funds aside...
by The Wizard
Sun Feb 11, 2018 10:41 pm
Forum: Personal Consumer Issues
Topic: Birding binoculars under $500?
Replies: 21
Views: 1000

Re: Birding binoculars under $500?

The better birding binoculars are electronically stabilized, right?
by The Wizard
Sat Feb 10, 2018 7:32 am
Forum: Personal Finance (Not Investing)
Topic: Taxable income calculation ?
Replies: 8
Views: 384

Re: Taxable income calculation ?

That sounds about right.
Monitor actual withholding and project where you'll be at year's end.
And aim for a small additional amount due, not a small refund...
by The Wizard
Fri Feb 09, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: "The stock market is officially in a correction... here's what usually happens next"
Replies: 83
Views: 13130

Re: "The stock market is officially in a correction... here's what usually happens next"

DanMahowny wrote:
Fri Feb 09, 2018 1:46 pm
...I'll get back in after equities decline 40%.
So we're having a 40% drop this time?
Oh my!!
:shock: :shock:
by The Wizard
Fri Feb 09, 2018 8:14 am
Forum: Investing - Theory, News & General
Topic: "The stock market is officially in a correction... here's what usually happens next"
Replies: 83
Views: 13130

Re: "The stock market is officially in a correction... here's what usually happens next"

MrPotatoHead wrote:
Fri Feb 09, 2018 1:40 am

LOL, apparently there is a MrPotatoHead and a mrpotatoheadsays, two different user ids.
I don't wanna get between the two of you if you have a disagreement!
by The Wizard
Tue Feb 06, 2018 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Where to keep money to get to Social Security at age 70?
Replies: 14
Views: 1225

Re: Where to keep money to get to Social Security at age 70?

I don't see a total portfolio amount, just $200k plus an unknown amount in an IRA. Let's say that unknown amount is $1 million. Then combine the $200k with it conceptually and manage the whole thing to a 60/40 AA. That's what I'm doing to bridge a SEVEN year gap and it's working fine. Now if ALL th...
by The Wizard
Tue Feb 06, 2018 5:15 pm
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 10021

Re: RBD alert [Really Bad Day]

Huh. That's it? That's all there is to employing the fabled RBD System of market timing? You can even wait until the market closes, then just check rebalancing bands? This sure seems anticlimactic, hardly worthy of an "alert." In the worst case scenario — say someone doesn't get the alert in time —...
by The Wizard
Tue Feb 06, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Where to keep money to get to Social Security at age 70?
Replies: 14
Views: 1225

Re: Where to keep money to get to Social Security at age 70?

I don't see a total portfolio amount, just $200k plus an unknown amount in an IRA. Let's say that unknown amount is $1 million. Then combine the $200k with it conceptually and manage the whole thing to a 60/40 AA. That's what I'm doing to bridge a SEVEN year gap and it's working fine. Now if ALL the...
by The Wizard
Tue Feb 06, 2018 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Financial Hole
Replies: 163
Views: 13304

Re: Financial Hole

This appears to be a different case to solve. Step 1 would be education and fact finding, to determine the OP's true situation and devise a decent plan going forward. Step 2, sadly, is to declare bankruptcy to clear the burden of CC and payday loans, which likely exceed one year's gross income for t...
by The Wizard
Tue Feb 06, 2018 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Ineligibile Roth Contributions
Replies: 9
Views: 425

Re: Ineligibile Roth Contributions

The IRS finds it quite difficult to monitor taxpayer cash flows in a timely fashion, even when forms are submitted properly. And places like vanguard.com aren't helping much either as regards ineligible Roth IRA contributions. When I log on, their website continues to prompt me to contribute $6500 f...
by The Wizard
Tue Feb 06, 2018 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Ineligibile Roth Contributions
Replies: 9
Views: 425

Re: Ineligibile Roth Contributions

You have to pay an annual 6% penalty on the disallowed contributions...
by The Wizard
Tue Feb 06, 2018 10:08 am
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 10021

Re: RBD alert [Really Bad Day]

Doc wrote:
Tue Feb 06, 2018 9:59 am
bling wrote:
Tue Feb 06, 2018 9:49 am
so that looks like i can actually do a TLH here...
Nope at 9:59 AM Easten the S&P futures were up some 2%.
Not futures, ACTUALS...
by The Wizard
Mon Feb 05, 2018 9:46 pm
Forum: Investing - Theory, News & General
Topic: Where Are The 100% Equity Bulls? BND up .44%
Replies: 47
Views: 4664

Re: Where Are The 100% Equity Bulls? BND up .44%

So what. We are here for the long run, this 4.2% do not worry. If we have cash, we can buy more Conversely, if you're already 100% in stocks, you can't really buy more when a situation like this hits. Well, I suppose you could put half of your checking account balance in at 3:30 pm, but you know wh...
by The Wizard
Mon Feb 05, 2018 8:51 pm
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 10021

Re: RBD alert [Really Bad Day]

Is VTSAX below where is was in Dec 2017? I don't think so. Keep things in perspective. If you weren't doing anything 6-8 weeks ago in Dec, why do you think you should do something now? Stay the course? What does your IPS say? VTSAX is below where it was for all but 2 days in December. So today's cl...
by The Wizard
Mon Feb 05, 2018 5:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard site is crashed now?
Replies: 188
Views: 14534

Re: Vanguard site is crashed now?

If a modern company like Vanguard has 1 million account holders who have accessed their account via the Internet in the past year, then what is the proper IT design for the expected maximum number of simultaneous/concurrent logon sessions? 200,000? 800,000? IT experts here need to reach consensus if...
by The Wizard
Mon Feb 05, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: IRA contribution question. Can my dad contribute?
Replies: 6
Views: 396

Re: IRA contribution question. Can my dad contribute?

DSInvestor wrote:
Mon Feb 05, 2018 1:06 pm
Roth IRA contributions are allowed after age 70.5. If they file as married filing jointly, he can contribute to his Roth IRA based on his wife’s compensation.
Yes, but if MAGI too high, then backdoor Roth contribution is not allowed if 70.5 or older...
by The Wizard
Mon Feb 05, 2018 3:18 pm
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 10021

Re: RBD alert

It appears we just had a bit of a flash crash, in the DJIA at least, followed by a decent dead cat bounce.
Make of that what you will...
by The Wizard
Mon Feb 05, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 10021

Re: RBD alert

vk_217 wrote:
Mon Feb 05, 2018 3:14 pm
Should I exchange my bonds to equities.Sorry 1 year BH here and I have about 25k in equities and 5K in Bonds.
Not the whole 5K, no.
$500 at most for you, probably less...
by The Wizard
Mon Feb 05, 2018 3:08 pm
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 10021

RBD alert [Really Bad Day]

Keep an eye on the major stock metrics.
You've got 50 minutes from now to put in a buy order if things hold...
by The Wizard
Sat Feb 03, 2018 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: What Would You Do With $100,000 Right Now
Replies: 28
Views: 2806

Re: What Would You Do With $100,000 Right Now

2 nights here: https://www.fourseasons.com/newyork/accommodations/specialty_suites/ty_warner_penthouse/ Money well spent. "Located between Madison Avenue and Park Avenue on Billioinaire's Row" They could at least have spelled Billionaire correctly. 8-) The wealthy are different from you and me ...
by The Wizard
Sat Feb 03, 2018 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Credit for Retirees
Replies: 29
Views: 3566

Re: Credit for Retirees

tennisplyr wrote:
Sat Feb 03, 2018 5:31 pm
I was thinking similarly. Retired for 7 years and am interested in a HELOC on a mortgage free home. What are my odds on getting one, my credit score is >800
If you can show decent AGI on the past few years' tax returns, you should be fine...
by The Wizard
Sat Feb 03, 2018 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Do you live on a budget?
Replies: 65
Views: 3352

Re: Do you live on a budget?

Five years into retirement, my main budgetary metric is simply not to spend more than my monthly income, on average. Now that could be tricky under some circumstances, but my routine expenses are less than half my net income, so not too hard to manage. Note: I do need to put more thousands away to b...
by The Wizard
Sat Feb 03, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Is my analysis fair?
Replies: 8
Views: 448

Re: Is my analysis fair?

:mrgreen: 2. You absolutely cannot compare the performance of different investments over those time periods for the purpose of inferring what will happen in the future. Investment returns are highly variable and it means nothing to compare the results of different investment choices over short times...
by The Wizard
Thu Feb 01, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: Is changing AA considered market timing?
Replies: 37
Views: 1486

Re: Is changing AA considered market timing?

Suppose I have a 90:10 stock bond allocation. If I think that market is too overvalued right now and if I want to change the future contributions to be allocated 50:50, with hopes that if the market tanks again, i can change AA again to a more aggressive one, will this be considered an attempt to t...
by The Wizard
Thu Feb 01, 2018 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency Money
Replies: 25
Views: 2536

Re: Emergency Money

One of my favorite financial quotes is from Eric Tyson. I’m paraphrasing, but it went something like, “Whether unexpected expenses will come up isn’t so much the question as WHEN they will.” It totally changed how I think of money and emergency funds. That's fine, but unexpected expenses should not...
by The Wizard
Thu Feb 01, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Can anyone explain the reasoning behind [Vanguard Total Bond Index vs Vanguard Investment Grade Bond]
Replies: 8
Views: 881

Re: Can anyone explain the reasoning behind

VWESX is a long term bond fund with duration 13.75 years. This will under perform significantly in a rising interest rate environment.
Better to stay intermediate term with Total Bond or VBILX...
by The Wizard
Thu Feb 01, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: TIAA 403b R1, managing high ER, Questions re TRAD in rising int rate env & Social Choice
Replies: 13
Views: 777

Re: TIAA 403b R1, managing high ER, Questions re TRAD in rising int rate env & Social Choice

Just one data point. I use TIAA Traditional as my fixed income. Student, do you have any hesitation with investing in Trad during interest rate increases? I'm not sure if I understand the moving parts. New tax deferred money going into Trad the past several months is credited with a 4.0% annual int...
by The Wizard
Thu Feb 01, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: I have an overwhelming gift I'm in need of help of please.
Replies: 89
Views: 7873

Re: I have an overwhelming gift I'm in need of help of please.

If your house was paid for and you had a full ER Fund, would you pull out 270k so that you would have a windfall? If the answer is “no”, pay off the house. Regards, John A house is a consumer purchase. If it was paid off, some people would trade it in on a bigger one with a new mortgage. Invest tha...
by The Wizard
Thu Feb 01, 2018 6:48 am
Forum: Investing - Theory, News & General
Topic: Living on Dividends and Interest
Replies: 58
Views: 7440

Re: Living on Dividends and Interest

I get that people like dividends; I like them also. But there is no credible evidence that a dividend-oriented investment strategy is better than a total return strategy. And in a taxable account, you are likely to pay more taxes with a dividend oriented approach. Again, I don't understand this. Ho...
by The Wizard
Thu Feb 01, 2018 4:41 am
Forum: Investing - Help with Personal Investments
Topic: I have an overwhelming gift I'm in need of help of please.
Replies: 89
Views: 7873

Re: I have an overwhelming gift I'm in need of help of please.

OP also mentions using part of the money to cash flow a new vehicle. I'm not sure that would be a prudent decision. Over the next 20+ years, that $270,000 could nicely fund two Roth IRAs, presently $5500/year each and increasing to $6500/year each (or more) before long. With $170,000 of employment i...
by The Wizard
Thu Feb 01, 2018 4:26 am
Forum: Investing - Help with Personal Investments
Topic: I have an overwhelming gift I'm in need of help of please.
Replies: 89
Views: 7873

Re: "backdoor this year"

I would plan to max out all retirement space going forward: 401k, Roth IRA, which will be backdoor this year. OldSport: What do you mean by "backdoor this year"? Thank you and best wishes. Taylor He may be assuming that $270,000 is additional taxable income for this year. But it's probably not, so ...
by The Wizard
Wed Jan 31, 2018 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing TIAA-CREF Holdings
Replies: 9
Views: 849

Re: Rebalancing TIAA-CREF Holdings

Put half of your fixed income in restricted TIAA Traditional, paying 4.0% presently.
You're welcome...
by The Wizard
Wed Jan 31, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Doubling of Standard Deduction--Really??
Replies: 56
Views: 6980

Re: Doubling of Standard Deduction--Really??

Though tax brackets changed, unless I am mistaken, Medicare B and D charges were not adjusted and use the same brackets for those who have income resulting in adjusted payments. No cut there, and a focus on Medicaid and Medicare costs can be expected to be a focus in 2018. Tim Medicare IRMAA tiers ...
by The Wizard
Wed Jan 31, 2018 12:54 pm
Forum: Investing - Theory, News & General
Topic: The Vanderbilts
Replies: 26
Views: 3956

Re: The Vanderbilts

The Family Office concept of managing inherited wealth may be the best idea to avoid excessive spending, I'm thinking.
The Rockefellers have that and they're still pretty much solvent, right?
Not sure what the Waltons do...
by The Wizard
Wed Jan 31, 2018 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Introduction, or How does my portfolio look?
Replies: 11
Views: 611

Re: Introduction

Looks like you're doing ok, but with 20 years to retirement, I wouldn't drop the stock percentage too low. 60%+ would be good.

But as usual, your savings rate is going to matter more than a 5-10% difference in your stock allocation...
by The Wizard
Wed Jan 31, 2018 9:46 am
Forum: Investing - Help with Personal Investments
Topic: TIAA 403b R1, managing high ER, Questions re TRAD in rising int rate env & Social Choice
Replies: 13
Views: 777

Re: TIAA 403b R1, managing high ER, Questions re TRAD in rising int rate env & Social Choice

I wonder if either of you could help me understand TRAD interest rates now. i have a negligible amount in the illiquid version in a 403B which i can no longer contribute to (former employer). My Roth has access to the liquid version with the much lower interest rate; although currently i do not hav...
by The Wizard
Wed Jan 31, 2018 9:25 am
Forum: Investing - Theory, News & General
Topic: Household Assets 1972-1982
Replies: 10
Views: 1766

Re: Household Assets 1972-1982

I started full-time employment in 1973 and put most of my 403(b) monthly contributions into stocks, the CREF Stock fund specifically.
Rules at the time required a percentage of contribs to go into TIAA Traditional; I forget the exact split.
Anyway, it worked out fine for me...
by The Wizard
Tue Jan 30, 2018 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Taxing Problem
Replies: 8
Views: 806

Re: Taxing Problem

Not familiar with NY; perhaps someone from there will have the answer.

Also, my answer assumes that $108,000 is the bulk of your AGI, with maybe just a little interest and dividends on top.
If you have significant other income such as SS, then the total tax due will be quite more...
by The Wizard
Tue Jan 30, 2018 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Accelerating Mortgage Payments? Result of new tax law
Replies: 11
Views: 1003

Re: Accelerating Mortgage Payments? Result of new tax law

Yes, there's less reason to hold a mortgage forever when you're taking the standard deduction.
But that doesn't mean stop everything else and pay off the mortgage ASAP. It's not like CC debt...