Search found 6689 matches

by Dandy
Sun Mar 17, 2024 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating RMD Taxes for Retirement Planning
Replies: 15
Views: 1806

Re: Estimating RMD Taxes for Retirement Planning

I have a pretty high withholding for Federal and State taxes on my RMD. As RMDs rise so does the withholding. It also
eliminates the need to pay estimated taxes since I take my RMD in January.

Of course taking it early in the year limits possible growth that could occur. My overall portfolio allocation is about 45/55 and my TIRA allocation is about 25/75. So I'm not missing that much potential growth.
by Dandy
Thu Mar 14, 2024 3:48 pm
Forum: Personal Investments
Topic: Cash or CD's Instead of Bond Funds
Replies: 61
Views: 5436

Re: Cash or CD's Instead of Bond Funds

Bonds, CD's and Cash can all have a role especially in or near retirement. Bond values react to changes in interest rates in real time. CD's hold there rate until they mature. Cash holds it's value and just adds whatever rates are current.
by Dandy
Thu Feb 08, 2024 8:50 am
Forum: Personal Finance (Not Investing)
Topic: When to Start Soc Sec
Replies: 61
Views: 6811

Re: When to Start Soc Sec

If you don't need the SS money now I think it is best to wait and get a larger inflation adjusted payments at age 70. Who knows how long your are going to live and what your investments will do down the road? The key is really whether delaying will cause to not to fully enjoy your retirement while you wait--and if circumstances change you can always take it before 70.
by Dandy
Sun Nov 05, 2023 12:09 pm
Forum: Personal Investments
Topic: savings bonds online with maiden name now with married name
Replies: 2
Views: 506

savings bonds online with maiden name now with married name

Daughter wants to know how to redeem savings bonds now that I'm married so names don't match? Is there a phone or email for assistance.
by Dandy
Wed Nov 01, 2023 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Question for Married Bogleheads - % to allocate to joint accounts
Replies: 174
Views: 13256

Re: Question for Married Bogleheads - % to allocate to joint accounts

All our accounts that can be are joint accounts. As we age, I'm 75 I think it might make sense to each have an individual account. I'm thinking when one passes it might be easier to handle the transition if each had a individual checking account. e.g. an account that is open to put life insurance payments etc. and is set up to pay bills from.
by Dandy
Wed Nov 01, 2023 12:30 pm
Forum: Personal Investments
Topic: Where to invest emergency fund? 10yr Treasury? CD?
Replies: 24
Views: 2318

Re: Where to invest emergency fund? 10yr Treasury? CD?

I always have a variety of emergency fund assets but they usually are shorter term. e.g. a 3 yr or less Cd, Savings Accounts, Short Term Treasury Fund, Stable Value Fund, Money Market Fund, etc. When the need arises pick the one that makes sense at the time. e.g. If the 3 yr Cd will mature in 2 months use funds from a money market or savings then use the maturing CD. I wouldn't worry to much about rebalancing these e fund assets just have the total target amount covered.
by Dandy
Sun Oct 01, 2023 10:49 am
Forum: Personal Investments
Topic: Replenishing MM Fund for Yearly Expenses
Replies: 17
Views: 1691

Re: Replenishing MM Fund for Yearly Expenses

Consider having your taxable equity distributions sent to the Vanguard settlement fund. Use that money to rebalance or help fund retirement expenses.
by Dandy
Thu Sep 28, 2023 10:45 am
Forum: Personal Investments
Topic: Are Short Term Bonds preferable to Total Bond Market Index Funds?
Replies: 60
Views: 6995

Re: Are Short Term Bonds preferable to Total Bond Market Index Funds?

total bond is highly diversified within that universe. That universe doesn't include large other fixed income products like CDs, money markets, high yield savings, Stable Value Funds, etc.

Not knocking Total Bond Fund just don't know why leaving out these very large fixed income products is often the case. When interest rates rise Total Bond will take a hit, but money markets and some other fixed income products will gain adding some stability to your portfolio. This might be more important to retirees who don't have salary/wage/overtime/bonus/income and rely on a non cola pension or just SS.
by Dandy
Thu Sep 28, 2023 10:26 am
Forum: Personal Investments
Topic: Are Short Term Bonds preferable to Total Bond Market Index Funds?
Replies: 60
Views: 6995

Re: Are Short Term Bonds preferable to Total Bond Market Index Funds?

[u]think you meant "Don't know why more people don't aim to diversify their fixed income assets"? I agree and this should be on the Wiki.[/u]

good catch :)
by Dandy
Thu Sep 28, 2023 10:06 am
Forum: Personal Investments
Topic: Are Short Term Bonds preferable to Total Bond Market Index Funds?
Replies: 60
Views: 6995

Re: Are Short Term Bonds preferable to Total Bond Market Index Funds?

Don't know why more people aim to diversify their fixed income assets. Some intermediate bonds, short term bonds, money market funds, CDs etc.
by Dandy
Sat Sep 23, 2023 8:52 am
Forum: Personal Investments
Topic: Fixed income/Bond portion
Replies: 6
Views: 1154

Re: Fixed income/Bond portion

I'm in the asset preservation mode late in retirement. But I've always diversified my fixed income allocations. Some intermediate bond funds, short term bond funds, CDs, high interest savings accounts, etc. I don't worry about rebalancing the detailed holdings just focus on the overall equity vs fixed income allocation. This approach seems to calm fixed income volitivity a bit when interest rates change.

In my employment years I also used my company's Stable Value Fund a lot.
by Dandy
Mon Sep 04, 2023 11:38 am
Forum: Personal Investments
Topic: replacing bonds with money market funds
Replies: 23
Views: 2344

Re: replacing bonds with money market funds

I favor having a variety of fixed income products. Some CDs, Savings, Money Markets, muni funds, and Intermediate bonds funds like the Total Bond fund. A lot depends on your age, asset level and your target allocation.

I'm not overly concerned about sub allocations to my fixed income products just the overall allocation of equities and fixed income.
by Dandy
Tue Aug 29, 2023 9:06 am
Forum: Investing - Theory, News & General
Topic: "The Place of Social Security in Your Retirement Portfolio"
Replies: 49
Views: 8404

Re: "The Place of Social Security in Your Retirement Portfolio"

I don't see the value of treating Social Security as anything else but income. It reduces (or may eliminate in rare cases) your need to tap your investment portfolio to support living expenses.
by Dandy
Tue Aug 29, 2023 8:57 am
Forum: Personal Investments
Topic: Unwinding Taxable Investments
Replies: 17
Views: 2226

Re: Unwinding Taxable Investments

If you haven't done it already change the taxable account equity distributions from reinvest to cash.
by Dandy
Sun Aug 27, 2023 7:41 am
Forum: Investing - Theory, News & General
Topic: 5% cash allocation
Replies: 29
Views: 2845

Re: 5% cash allocation

I think some of the decline in recommending an allocation to cash was that yields were so tiny for many years. Many brand name banks still pay almost nothing on Savings Accounts. I am in very good financial shape and at 75 my approach is more tilted to asset preservation rather than growth. My cash allocation is about 15% of my portfolio. Most in online banks and/or money market funds/CDs. They are earning 4 to 5%. I allocate about 45% to equities. Also my pension income will drop 50% for my widow who is not investment savvy. So I want a decent amount of safe assets to help replace that income. Also, to keep my equity allocation which is mostly in a taxable account I recently changed equity distributions from reinvest to cash e.g. the Feder...
by Dandy
Thu Aug 24, 2023 7:07 am
Forum: Investing - Theory, News & General
Topic: What motivated you to save money?
Replies: 232
Views: 27993

Re: What motivated you to save money?

My mom - god bless her. As a young lad I was given an allowance of 50 cents as I recall. I watched the quarters accumulate because I had little spending "needs". I also got money gifts sometimes for birthdays etc. One day my mom saw me fondling my stash and explained to me that I could open a saving account and it would make my money grow. I was interested and she took me to their bank and I got a passbook savings account of probably $50. That was it -- I saw interest - my money was making more money all by itself. Later when I got a full time job and could open a 401k I did so and each year I would try to add more by increasing my contributions or upping my payroll deductions for Savings Bonds. Most of the 401k went to the Stable...
by Dandy
Sat Aug 19, 2023 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Rethinking "Keep Your Car for Ten Years"
Replies: 466
Views: 48718

Re: Rethinking "Keep Your Car for Ten Years"

Traditionally, it has been a badge of frugal honor to keep a car 10 years or more. Being late in retirement and not putting many miles on my cars I have one 11 years old and the other 9 years old. They are both in decent shape with about 60k miles on them. I think you can make a case that this tradition may need to be rethought since many newer car have updated safety features. Automatic braking, the feature that tells you some car is coming alongside of you or crossing in back of you when you are backing up, etc. I can sense my driving skills aren't as sharp as they once were and would welcome having these safety features. So should I wait and squeeze the most value out of my existing cars or upgrade my driving safety? I haven't made that ...
by Dandy
Wed Aug 02, 2023 12:40 pm
Forum: Personal Investments
Topic: This may seem dumb, but… [100% CDs & MM accounts]
Replies: 93
Views: 12703

Re: This may seem dumb, but… [100% CDs & MM accounts]

"I’m not a risk taker"

Having no allocation to equities has risks too. e.g. high inflation not allowing your fixed income portfolio to keep up, Living to age 100 and running out of money, high medical expenses, etc. A low equity allocation is no guarantee either - there are really no guarantees just selecting allocations that cover most situations and that you can feel good about it.










'
by Dandy
Wed Aug 02, 2023 7:05 am
Forum: Personal Investments
Topic: This may seem dumb, but… [100% CDs & MM accounts]
Replies: 93
Views: 12703

Re: This may seem dumb, but… [100% CDs & MM accounts]

I would suggest a conservative equity allocation in the low to mid 20's to help offset some inflation and provide some modest growth. You still have the potential of 20+ years of life and retirement can generate some unexpected expenses. A balanced fund would be my suggestion.
by Dandy
Sun Jul 23, 2023 7:15 am
Forum: Personal Investments
Topic: Static Asset Allocation
Replies: 35
Views: 2829

Re: Static Asset Allocation

While working you usually have a salary and maybe a bonus, are making contributions to say a 401k and get a company match. Those things make a deep equity market plunge easier to stick with your investment plan.

In retirement you may have a pension that usually fixed and Social Security which is adjusted for inflation and most likely have to tap retirement savings to help meet normal expenses. A major equity plunge may not be so easy to take under these circumstances.

It seems to me that in most cases if you are in good financial shape in retirement you should normally be leaning more to asset preservation than upping your equity allocation for more growth/risk.
by Dandy
Fri Jul 14, 2023 7:19 am
Forum: Personal Investments
Topic: should rebalance, but would increase income
Replies: 17
Views: 2209

Re: should rebalance, but would increase income

What I did was change taxable equity distributions from reinvest to cash and put that cash in my taxable settlement account. You could also put it into a muni fund. You could also rebalance your overall portfolio by selling some equities in your TIRA or Roth IRA. I've done a bit of that also. Equity investments in taxable accounts should eventually have large potential capital gains especially if you have been investing and contributing for decades. That can make selling some to rebalance a bit costly. Eventually, you may have to do that not to distort your taxable and non taxable allocations too much. If you have children you might also consider gifting taxable equity shares to them. The can avoid taxes because they should get a stepped up...
by Dandy
Tue Jul 11, 2023 12:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Transparency
Replies: 49
Views: 4405

Re: Vanguard Transparency

I do have some concerns. Appreciate the low cost of the funds and a track record that seems to have been customer focused. But that could change and we might not find out very easily. Stock companies have more transparency & accountability by shareowners, analysts and government -- and still have issues. Less transparency & accountability tempts people to do things they shouldn't.
by Dandy
Mon Jul 10, 2023 7:29 am
Forum: Investing - Theory, News & General
Topic: What allocation did you or are you going into retirement with and why
Replies: 87
Views: 8709

Re: What allocation did you or are you going into retirement with and why

I'm 75 and retired at 60 with a 50/50 allocation. Since pensions and SS income almost covers normal expenses I keep it at about 45/55.
by Dandy
Sun May 28, 2023 6:14 am
Forum: Personal Investments
Topic: VUSXX or Stable Value in 403b
Replies: 12
Views: 1171

Re: VUSXX or Stable Value in 403b

You might want to check if those dollars can go back to stable value. If not that might be a something to consider.
by Dandy
Sun May 21, 2023 1:35 pm
Forum: Investing - Theory, News & General
Topic: Is there an age you would turn off automatic dividend reinvestment?
Replies: 112
Views: 10646

Re: Is there an age you would turn off automatic dividend reinvestment?

I'm 75 with about half my portfolio in taxable and about 2/3 of taxable assets in equity funds with large cap gains. Last year I directed all my taxable equity distributions to the settlement fund. When needed I transfer money from the taxable settlement fund to my bank.

My TIRA has an equity allocation of about 25% or less from partial investments in the Balanced Index Fund and Wellesley Income funds. If I need to maintain my overall equity allocation I will probably do it in my TIRA rather than create more in my taxable account.

For several years I have been more focused on asset preservation vs investing for growth.
by Dandy
Wed May 10, 2023 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Retirement cash flow/income - could you give some examples please?
Replies: 103
Views: 11675

Re: Retirement cash flow/income - could you give some examples please?

I have pensions and Social Security sent to a bank savings account with decent interest rate. I also have a money market fund there. Each month I have $ automatically sent to a local brick bank no fee (or interest) checking account. I have the ability to fund either account with transfers from my investment settlement account which also receives my RMDs.
by Dandy
Sun May 07, 2023 7:19 am
Forum: Investing - Theory, News & General
Topic: “Stop Playing”..What Does This Really Mean?
Replies: 98
Views: 12321

Re: “Stop Playing”..What Does This Really Mean?

to me it means stop focusing on growth and focus more on asset preservation especially for the amount of assets needed to fund many years of estimated retirement expenses. For me I used about 20 years. Also, keep your overall asset allocation moderate to conservative. Mine is about 45/55. Before I made these adjustments my allocation was about 55/45. In most retirements a major bad equity market can wreck retirement plans. Unlike working when you have a salary, make contributions, get a company match, etc. You are doing all the funding of your expenses not covered by Social Security or a pension. And you maybe be doing that for several decades. Also, your re employment opportunities often fade rather quickly. If you've won the game (e.g. ah...
by Dandy
Thu Apr 27, 2023 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Have you ever used your emergency fund?
Replies: 272
Views: 28809

Re: Have you ever used your emergency fund?

I never had a special specific emergency fund. I did have various options e.g. had EE bonds, A HELOC (no fee), an investment plan at work that had 5k that was withdrawable without penalty even after it converted to a 401k, whole life insurance cash value, various savings e.g. saving account, CDs, Lost my job at 52 new job in 4 months used very little of large severance. Lost job again at 62. and company paid significant severance pay that helped bridge gap to pensions and Social Security. When I have an unexpected large expense I usually have various options to tap. e.g. now since my equity allocation is where I want it I have taxable distributions sent to Fed Money Market rather than reinvest. I like having options when there is an unexpec...
by Dandy
Tue Apr 25, 2023 6:57 am
Forum: Personal Investments
Topic: At what point does one's AA not matter anymore?
Replies: 37
Views: 4770

Re: At what point does one's AA not matter anymore?

I guess I'm more of when you have won the game why take more risk for more growth? Of course at age 40 you have a possible 50 years of expenses to fund. I would probably go for a moderate allocation between 40 and 50% equities.
by Dandy
Mon Apr 24, 2023 2:36 pm
Forum: Investing - Theory, News & General
Topic: No plans to sell equities in retirement to meet planned expenses
Replies: 81
Views: 7883

Re: No plans to sell equities in retirement to meet planned expenses

About 1/2 my money is in a TIRA and the other half in Taxable. The TIRA has an equity allocation of about 22%, the Taxable equity allocation is about 55% and a couple of Roths have about a 45% equity allocation. The taxable equities have large cap gains and I have distributions sent to the Federal Money Market. My pension and our SS come close to our normal expenses. The RMD is what funds any extra expenses needed. Obviously some equities are sold to fund the RMDs. I also use the TIRA to fund some additional equities I might want to do to "rebalance". I'm not overly focused on rebalancing just want to keep equities at some reasonable level say around 40% or so. Taxable equities hopefully will be inheritance for my children and the...
by Dandy
Sun Apr 09, 2023 8:54 am
Forum: Personal Finance (Not Investing)
Topic: RMD Tax Withhold / payment question
Replies: 16
Views: 1585

Re: RMD Tax Withhold / payment question

I take my RMD in a lump sum in early with high (25 and 5)federal and state withholding. Works well and eliminated the need for filing estimated taxes. I usually get a modest refund from both federal and state.
by Dandy
Tue Mar 14, 2023 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Advice for retiring loved one who missed out on Bogleheads
Replies: 24
Views: 3817

Re: Advice for retiring loved one who missed out on Bogleheads

you might consider not reinvesting equity distributions and redirecting them to a money market fund or other fixed income product.
by Dandy
Fri Mar 10, 2023 9:24 am
Forum: Personal Investments
Topic: Rebalancing for an unexpected retirement
Replies: 11
Views: 1212

Re: Rebalancing for an unexpected retirement

I would consider not having equity distributions reinvested and sent to bonds or other fixed income products. I tend not to make a major distinction between different fixed income options. e.g. for the most part they all have some value in offsetting equity risk. (The prospect of rising interest rates over the near term is also a consideration).
When the target allocation is reached you can decide to reinvest equity distributions if you desire. You might select slightly different equity products to have some equities that don't have huge cap gains. That may help future rebalancing needs since they may not have huge cap gains.
by Dandy
Mon Feb 13, 2023 7:17 am
Forum: Personal Finance (Not Investing)
Topic: How are you addressing or mitigating financial risks in retirement?
Replies: 66
Views: 6849

Re: How are you addressing or mitigating financial risks in retirement?

Most times these risks stay risks no matter what but some mitigation can occur. At retirement age and you think you have enough:

Market risk - mitigate by having a moderate allocation to equities. Tilt toward asset preservation vs going for growth.

Expense risk - mitigate by having no debt, good health and other insurance, delaying SS to maximize COLA income, moderate
enjoyment spending early in retirement.

Longevity risk - delaying SS to maximize COLA income, annuities,
by Dandy
Sun Feb 05, 2023 7:39 am
Forum: Investing - Theory, News & General
Topic: Portfolio swings when working compared to retired
Replies: 98
Views: 9108

Re: Portfolio swings when working compared to retired

The portfolio swings made a big difference to me in retirement and I'm in pretty good shape. While working you had a salary, maybe a bonus, company match to your 401k and your 401k contributions. Also you had employment.

In retirement I had none of the above and pretty soon not very employable. Also, pension not inflation adjusted, medical coverage but not dental, increased medical and dental expenses, etc. You learn over the years that your portfolio will dip but the dips feel worse, at least for me, in retirement.
by Dandy
Sat Feb 04, 2023 7:37 am
Forum: Personal Investments
Topic: % equities in distribution portfolio
Replies: 31
Views: 3967

Re: % equities in distribution portfolio

age 75 and pension and social security almost equals normal expenses. Allocation is 45/55. Almost all equities located in taxable account with large capital gains. Don't reinvest taxable equity distributions. RMD is mostly not needed to cover expenses. Building low risk fixed income assets to help fund spouse's financial needs should I die first and she loses half my pension, her SS (mine is higher) and has to file single instead of joint. Also, gifting some early inheritance to both children.
by Dandy
Mon Jan 30, 2023 7:55 am
Forum: Investing - Theory, News & General
Topic: Does it make sense to have multipe bond funds of varying duration?
Replies: 18
Views: 1592

Re: Does it make sense to have multipe bond funds of varying duration?

I think having your fixed income somewhat varied can make sense. I have about 25% in FDIC products/ money markets, 25% in Short Term bond funds and 50% in intermediate bond funds - much of this in balanced funds but also some Inflation Protected fund. I don't overly fuss about the rebalancing of my fixed income assets - mainly focus on overall equity vs fixed income allocation - which is about 45/55. If I have a bit more in short term bond funds vs intermediate bond assets I don't consider that to be a big deal.

Much of my fixed income is in my TIRA and I take my RMD proportionately which tends to have a modest rebalance effect.
by Dandy
Tue Jan 24, 2023 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Unreasonable to have 2+ years of emergency funds?
Replies: 35
Views: 3974

Re: Unreasonable to have 2+ years of emergency funds?

Times of personal unemployment often occur when there is an economic downturn and lots of unemployment and negative equity performance. In that case you don't want to have to sell depressed equities to fund living expenses unless you have to.

Having a couple of years in an E fund is reasonable to me especially if you are able to adequately fund your retirement fund accounts.
by Dandy
Mon Jan 23, 2023 9:01 am
Forum: Investing - Theory, News & General
Topic: Why own bonds (over cash) in fixed income these days?
Replies: 28
Views: 5497

Re: Why own bonds (over cash) in fixed income these days?

I think most fixed income allocations should include FDIC type products, as well as short term and intermediate bond funds.
by Dandy
Mon Jan 23, 2023 8:54 am
Forum: Personal Investments
Topic: Fellow Retirees: How Much Do You Have in “Bucket #1”?
Replies: 90
Views: 13084

Re: Fellow Retirees: How Much Do You Have in “Bucket #1”?

I'm almost 75 and our normal income about equals our normal expenses. If I die first my wife will lose half my pension and her SS since mine is higher and she will have to file single instead of joint. I estimated that she will need about $50k per year more. I make sure we have enough "safe" assets to fund her estimated extra needs to her age 90. The "safe" assets are in taxable and tax advantaged accounts. Also, my RMDs should cover the extra expense needs so the "safe" assets are just an extra safety net. "safe" assets I define as FDIC products, money market funds and high quality short term bond funds. Overall allocation is about 45/55 and "safe" assets are about half of our fixed income ...
by Dandy
Sat Jan 07, 2023 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Mobile deposit very large check
Replies: 32
Views: 5696

Re: Mobile deposit very large check

If you are going to mobile deposit I would only do it if your bank is open at that time. I tried to do a mobile deposit a few months ago and it hung up. I wasn't sure if it would be clear that it made it or not. It turned out it didn't take. I now only try it at my local bank (vs online bank) and only if they are open.
by Dandy
Tue Dec 27, 2022 7:26 am
Forum: Investing - Theory, News & General
Topic: Rebalancing in Retirement.
Replies: 38
Views: 6174

Re: Rebalancing in Retirement.

The need to rebalance for a retiree that has "enough" "safe assets" is less. The goal likely transitions from growth to asset preservation the later you are in age/retirement. I'm in my mid 70's with our income close to our normal expenses. We should have enough savings and investments to fund life in most circumstances. I'm not rebalancing and have changed our taxable equity distributions from reinvest to cash. I calculated my wife's income needs should I die first since she would lose 1/2 my pension, her SS since mine is higher and have to file single instead of joint. I make sure we have at least enough "safe" assets (savings, money markets and high quality short term bond funds) to fund her to age 90. That'...
by Dandy
Mon Dec 19, 2022 7:42 am
Forum: Personal Investments
Topic: SS and Pension [Do they count as "bond" asset allocations?]
Replies: 35
Views: 3519

Re: SS and Pension [Do they count as "bond" asset allocations?]

no SS and Pension are retirement income. That allows you to take more investment risk -- if you need or want to. It also allows you to take less risk if you don't need to.
by Dandy
Sun Dec 18, 2022 12:11 pm
Forum: Personal Investments
Topic: Withdrawing RMD
Replies: 20
Views: 2342

Re: Withdrawing RMD

lump sum. much easier then multiple times and make sure that the required amount in total is taken out for the year and no more than that.
Also, if you forget, or become sick and can't finish the job it creates problems.

Most recommend taking it out later in the year to maximize potential portfolio gains - but I wouldn't wait too late - again if you get sick etc. you don't want to miss the deadline.
by Dandy
Fri Dec 16, 2022 7:13 am
Forum: Personal Finance (Not Investing)
Topic: How to replenish EF
Replies: 31
Views: 3963

Re: How to replenish EF

Consider taking taxable distributions in cash vs reinvest - resume reinvesting them when E fund is re established.
by Dandy
Sat Dec 03, 2022 10:51 am
Forum: Personal Investments
Topic: How do I pay myself in retirement?
Replies: 21
Views: 3968

Re: How do I pay myself in retirement?

I did a few things early in retirement: 1. Sent taxable dividends and cap gains to money market rather than reinvest. 2. Fixed income allocation in taxable included short term muni fund and Savings account/money market. 3. Established an HELOC (at no cost) to provide a short term option for large unexpected expense as an option.* 4. Tried to keep allocation rebalancing in TIRA vs taxable or Roth accts. 5. Had pension and Social Security sent to an online bank Savings acct. Set up 2 automatic transfers to regular local checking each month approximating normal monthly expenses. Kept additional cash in the Savings account to provide some extra funding options. 6. Established the ability to move money from the taxable money market in # 1 to the...
by Dandy
Wed Nov 23, 2022 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Leaving SS on the Table: Altig, Kotlikoff, and Ye
Replies: 83
Views: 8086

Re: Leaving SS on the Table: Altig, Kotlikoff, and Ye

really it comes down to if you are reasonably healthy and can afford to wait without undo hardship - it is better to wait. This is especially so if you are married and are the much higher earner. The beauty is if during the wait your health or need for income changes - you can file and collect.
by Dandy
Wed Nov 23, 2022 8:37 am
Forum: Investing - Theory, News & General
Topic: Income stability --> stay the course?
Replies: 39
Views: 6623

Re: Income stability --> stay the course?

Your ability to take risk tends to be less as you near retirement and/or have potential job loss.
by Dandy
Tue Nov 22, 2022 9:56 am
Forum: Personal Finance (Not Investing)
Topic: how many use buckets?
Replies: 80
Views: 7319

Re: how many use buckets?

I'm almost 75 and our income almost equals our normal monthly expenses. That will be less so if I die before my wife. So, she will need more income due to the loss of half my pension, her SS (mine is larger) and filing taxes single instead of joint.

So I made a rough estimate of what she would need extra each year. I put that yearly amount X the number of years for her to reach age 90 in "safe" fixed income e.g. Savings Accounts, Money Markets, CDs, and short term bond funds. That makes our overall fixed income allocation 50% "safe fixed income and 50% intermediate bonds (most as a part of balanced funds).

Every year or so I give that a rough review.
by Dandy
Mon Nov 21, 2022 11:33 am
Forum: Personal Investments
Topic: Question regarding rebalancing to my desired asset allocation
Replies: 4
Views: 571

Re: Question regarding rebalancing to my desired asset allocation

you could change your taxable US equities distributions to cash and use that money to buy more international equities. No additional taxes and after the new year change it back to reinvest.