Search found 11727 matches

by The Wizard
Wed Jul 18, 2018 10:00 am
Forum: Investing - Help with Personal Investments
Topic: How do you handle the urge to DO something?
Replies: 37
Views: 1317

Re: How do you handle the urge to DO something?

You'll do fine. If you find that you really, really want to go making changes, come on over to my house on a weekend. This past winter, we got a lot of storm damaged trees that came down, so I need to clean up the brush and cut up the firewood. I have 2 chain saws, so I'll keep you busy. :D Funny y...
by The Wizard
Tue Jul 17, 2018 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Semi-Retire by 40-45, possible/realistic?
Replies: 3
Views: 715

Re: Semi-Retire by 40-45, possible/realistic?

Not sure you have enough millions to cut loose in a decade.
Let's see what happens going forward.
If you're self employed, big things can happen...
by The Wizard
Tue Jul 17, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: When to invest 100000?
Replies: 32
Views: 1709

Re: When to invest 100000?

When the CAPE gets down to 10 sounds like a good time also...
by The Wizard
Tue Jul 17, 2018 2:36 pm
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 40
Views: 3882

Re: Robert Merton on NewRetirement Podcast

As part of the pension/annuity dichotomy, it's amusing to ponder alternate statements using the two words. For example: 1) I am someone who has generally not been a fan of annuities. vs 2) I am someone who has generally not been a fan of pensions. Do the two statements above reflect a consistent mi...
by The Wizard
Tue Jul 17, 2018 2:30 pm
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 40
Views: 3882

Re: Robert Merton on NewRetirement Podcast

...If you do partially annuitize -- let's say just a basic SPIA -- would you feel more confident then being aggressive with the remaining amount being invested? As long as the annuity plus social security covered basic expenses? Yes indeed, regarding the remaining portfolio. My annuities + age 70 S...
by The Wizard
Tue Jul 17, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: Shifting Tides of Global Economic Power, 1820 to Today
Replies: 25
Views: 1581

Re: Shifting Tides of Global Economic Power, 1820 to Today

The sun never sets on the British empire.
That's the key point to remember here...
by The Wizard
Tue Jul 17, 2018 9:48 am
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 40
Views: 3882

Re: Robert Merton on NewRetirement Podcast

...If you do partially annuitize -- let's say just a basic SPIA -- would you feel more confident then being aggressive with the remaining amount being invested? As long as the annuity plus social security covered basic expenses? Yes indeed, regarding the remaining portfolio. My annuities + age 70 S...
by The Wizard
Tue Jul 17, 2018 8:35 am
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 40
Views: 3882

Re: Robert Merton on NewRetirement Podcast

People like pensions because they earned it, right? But annuities have you giving your money to an evil insurance company and you can't get it back! If you are receiving a pension worth a million dollars that is funded primarily by taxpayers, what's not to like? If you are paying a fat sales commis...
by The Wizard
Tue Jul 17, 2018 7:45 am
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 40
Views: 3882

Re: Robert Merton on NewRetirement Podcast

As part of the pension/annuity dichotomy, it's amusing to ponder alternate statements using the two words. For example: 1) I am someone who has generally not been a fan of annuities. vs 2) I am someone who has generally not been a fan of pensions. Do the two statements above reflect a consistent min...
by The Wizard
Tue Jul 17, 2018 7:38 am
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 40
Views: 3882

Re: Robert Merton on NewRetirement Podcast

I just came across this podcast today -- I thought it was excellent. In particular, I was intrigued by his discussion of annuities -- not so much for myself, but for my parents who have modest assets, and really depend on social security (and who I fear my depend on Medicaid someday). I feel like t...
by The Wizard
Mon Jul 16, 2018 7:27 pm
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 103
Views: 5608

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. Th...
by The Wizard
Mon Jul 16, 2018 7:22 pm
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 103
Views: 5608

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. Is that only because you are allocating the same dollars to two SPIAs where one has a much shorter expected duration than the joint expectanc...
by The Wizard
Mon Jul 16, 2018 3:42 pm
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 103
Views: 5608

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. Th...
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: 103
Views: 5608

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: 103
Views: 5608

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: 37
Views: 1972

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: 18
Views: 1732

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: 103
Views: 5608

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: 103
Views: 5608

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: 21
Views: 2265

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: 1570

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: 6279

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: 3088

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: 682

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: 2527

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: 682

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: 6279

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: 6279

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: 6279

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: 6279

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: 3188

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: 3188

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: 11026

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: 2584

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: 2584

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: 8306

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: 2584

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: 2584

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: 5775

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: 4334

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: 11026

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: 4334

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: 615

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: 99
Views: 8832

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: 99
Views: 8832

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: 4334

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: 615

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: 4334

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: 5605

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: 1638

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...