Search found 5120 matches

by delamer
Fri Jul 20, 2018 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Benefits Question - Annuity, TSP, FEHBP
Replies: 13
Views: 516

Re: Federal Benefits Question - Annuity, TSP, FEHBP

Sounds like a nice plan. If you retire at MRA with ten years of service, your basic benefit annuity gets reduced by 5% per year under age 62. That means for ten years of service with a $300k salary you would see an annual pension of $22,500. If you stay another 5 years and retire at 62, then your b...
by delamer
Fri Jul 20, 2018 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: College Saving Plans - Options
Replies: 4
Views: 291

Re: College Saving Plans - Options

My older kid received a partial scholarship to his private college. It was a merit scholarship based on his high school ACT/GPA being higher than average for that college. The college never asked us to provide any financial information before awarding him the scholarship, and we had significant mone...
by delamer
Fri Jul 20, 2018 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Benefits Question - Annuity, TSP, FEHBP
Replies: 13
Views: 516

Re: Federal Benefits Question - Annuity, TSP, FEHBP

A minor point on FEHB — in retirement, you can buy any coverage that you are eligible for at the same price as active employees. The only difference is that active employees can buy it with pretax dollars (premium conversion) and retirees cannot. I am a retired fed (pre Medicare) and after seeing th...
by delamer
Fri Jul 20, 2018 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Can I get a mortgage if retiring?
Replies: 14
Views: 1588

Re: Can I get a mortgage if retiring?

No direct, personal experience, but it is my understanding that asset depletion mortgages are more likely to be available through portfolio lenders.

You can do an internet search to find portfolio lenders in your area.
by delamer
Fri Jul 20, 2018 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: Transfer online savings/money market to income mutual fund?
Replies: 12
Views: 631

Re: Transfer online savings/money market to income mutual fund?

What if the dividend stays at 5% but the value falls 25%?

Your dollar dividend just went down 25%.
by delamer
Fri Jul 20, 2018 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: BH- Need advise for 45 year old
Replies: 22
Views: 1763

Re: BH- Need advise for 45 year old

If I were you I'd hold onto the investment properties. The house poor feeling will pass after a few years as inflation reduces the pressure of the payments. Provided I had significant equity in all three of my properties (a good bit of it appreciation?) I would always be able to sell in a pinch. I ...
by delamer
Fri Jul 20, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Should I Dump a Pile of Money on Young Son?
Replies: 101
Views: 5669

Re: Should I Dump a Pile of Money on Young Son?

Give the $1 million in the form of a trust, if at all. Protects him in the event of divorce, law suits, a tragic accident in which he needs long-term medical care, etc. Or set it aside in an account with him as beneficiary and invest it for a 24-year-old with a very long time horizon. And/or just gi...
by delamer
Fri Jul 20, 2018 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Inflation Rate, isn't it personal?
Replies: 49
Views: 3567

Re: Inflation Rate, isn't it personal?

I showed this on another thread, which I can't find at this time. 2001 100.0 2002 84.70 2003 56.70 2004 56.17 2005 57.22 2006 48.41 2007 36.67 2008 40.83 2009 29.30 2010 29.92 2011 35.80 2012 35.71 2013 33.54 2014 29.25 2015 33.31 2016 45.40 2017 63.54 What's my personal inflation rate? You can onl...
by delamer
Thu Jul 19, 2018 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard managing portfolio and delaying SS
Replies: 8
Views: 574

Re: Vanguard managing portfolio and delaying SS

Ah, tr is a Target Retirement fund. Any opinion of a TR fund vs a PAS? I see the TR is a lot less costly. Thanks, If you are comfortable picking a target retirement or lifestrategy fund (similar but the allocation does not change over time) on your own, then there is no need to pay the fee for PAS....
by delamer
Thu Jul 19, 2018 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard managing portfolio and delaying SS
Replies: 8
Views: 574

Re: Vanguard managing portfolio and delaying SS

gpsmith45 wrote:
Thu Jul 19, 2018 9:25 pm
What's a "tr fund"?
Target retirement
by delamer
Thu Jul 19, 2018 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Teenager’s college savings
Replies: 8
Views: 583

Re: Teenager’s college savings

I am not sure how a 1.56% return can be the more conservative option than the 1.1% return? Assuming again that your state tax rate is 5% — With the 529, you had $12,000 and now you have $12,600 plus whatever you earn in interest each year thereafter. So if you earn 1% for two more years (which would...
by delamer
Thu Jul 19, 2018 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: BH- Need advise for 45 year old
Replies: 22
Views: 1763

Re: BH- Need advise for 45 year old

Your instincts are good that you should take some risk off the table. Right now half of your net worth is in Bay Area real estate. While that isn’t exactly the same as having half in one stock, it is certainly similar to having half in the stocks of one industry. And you have the real earthquake risk.
by delamer
Thu Jul 19, 2018 8:43 pm
Forum: Personal Consumer Issues
Topic: [A Splendid Exchange, by William Bernstein - on sale for Kindle]
Replies: 19
Views: 1719

Re: Splendid Exchange Kindle Sale

Just purchased!

Make sure you use the Boglehead link to Amazon.
by delamer
Thu Jul 19, 2018 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Teenager’s college savings
Replies: 8
Views: 583

Re: Teenager’s college savings

So if you can deduct up to $12,000 from your state taxes for 529 contributions, then it is almost certainly worth it. If your state tax rate is 5%, for example, putting in $12,000 this year would save you $600 in taxes. Your kids can reimburse you for your contribution, and you get the deduction. Ma...
by delamer
Thu Jul 19, 2018 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Teenager’s college savings
Replies: 8
Views: 583

Re: Teenager’s college savings

I don’t think the advantages of 529 plans are worth much at your kids’ ages. The lack of taxes of earnings within the plan just won’t make much difference since they will be withdrawing soon. Now if you (or each kid) can take a deduction from your state income taxes, then it might be worthwhile. The...
by delamer
Thu Jul 19, 2018 9:57 am
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 97
Views: 3570

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

The answer in part depends in how much you’ll be able fund your retirement accounts going forward. If you can’t manage a 15% to 20% contribution toward retirement savings then yes, sell some of the collection to jump start your savings. To state the obvious, a lot of your assets are tied up in watch...
by delamer
Wed Jul 18, 2018 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Wills
Replies: 54
Views: 2718

Re: Wills

How are you preventing spouse #2 from getting your children's inheritance without endangering the livelihood of your spouse. I am married to the husband of my adult children. Even in that case, based on my will, if I die before my husband then my money goes into trust. My husband gets income from t...
by delamer
Wed Jul 18, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Accounts
Replies: 3
Views: 324

Re: Retirement Accounts

Assuming that you mean “employer sponsored” rather than “employee sponsored,” is it a 401(k)?

If so, is it a traditional 401(k) or a Roth?
by delamer
Wed Jul 18, 2018 3:00 pm
Forum: Personal Consumer Issues
Topic: Vacation Ideas like Alaskan Cruises
Replies: 11
Views: 875

Re: Vacation Ideas like Alaskan Cruises

Since you like the cruise experience, try one in the Mediterranean.
by delamer
Wed Jul 18, 2018 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Wills
Replies: 54
Views: 2718

Re: Wills

I am 60 married and have 2 adult children. My desire is for my husband to inherit everything and trust him to make sure my 2 children inherit everything 50/50 after he dies. I don't foresee any squabbling about this. I checked my state, Ohio, and if I die without a will, that is what the law says t...
by delamer
Wed Jul 18, 2018 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Families - What's your total annual credit card spend?
Replies: 87
Views: 5509

Re: Families - What's your total annual credit card spend?

About 15k-20k. Can't believe some of the figures on here. Not sure how much % goes on there but a lot of it. Not mortgage or taxes but a good proportion of everything else. Family of 3. Why can’t you believe them? Lol maybe because what some charge to credit cards each year could almost buy my hous...
by delamer
Tue Jul 17, 2018 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Wills
Replies: 54
Views: 2718

Re: Wills

The biggest hurdle for us (and the reason we waited so long), was deciding who we wanted to become guardians for our children. This has always been our problem and the reason, to this day that we don't have a will. Our youngest turns 18 in 2 months, so I'm actually completely happy with how our sta...
by delamer
Tue Jul 17, 2018 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Starting my investment
Replies: 9
Views: 289

Re: Starting my investment

Vlvthamr wrote:
Tue Jul 17, 2018 5:14 pm
Delamer
My wife has a 401k at work and she is at her max contribution with a partial company match.
That’s great!

You still have the option of a spousal IRA.
by delamer
Tue Jul 17, 2018 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Starting my investment
Replies: 9
Views: 289

Re: Starting my investment

If your wife has a 401(k) plan through her job that she is not contributing the maximum allowed to, you might want to use that for at least part of your savings. Meaning that you’d offset the reduction in her paycheck with some of your funds. The advantage of the 401(k) is the immediate tax reductio...
by delamer
Tue Jul 17, 2018 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Questions for my Parents
Replies: 19
Views: 1298

Re: Social Security Questions for my Parents

Yes I meant they would draw on the HELOC to pay the CC debt which is what I have advised them to do. They may be able to make it work with the inheritance. Rough math below. Inheritance of $1.7M plus $50k current investments + $200k additional after tax savings before retirement (rough estimate) - ...
by delamer
Tue Jul 17, 2018 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Another student loan question
Replies: 24
Views: 1016

Re: Another student loan question

Thanks for the suggestions! My gross annual income is $60,000. I work a more than full-time job in PR and I'm a writer, so any side hustles I pick up in my field pay a laughably small amount (seriously $75 for two weeks of work, or sometimes I'll work weeks on a pitch only to have it not get picked...
by delamer
Tue Jul 17, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Families - What's your total annual credit card spend?
Replies: 87
Views: 5509

Re: Families - What's your total annual credit card spend?

jjface wrote:
Tue Jul 17, 2018 3:08 pm
About 15k-20k. Can't believe some of the figures on here. Not sure how much % goes on there but a lot of it. Not mortgage or taxes but a good proportion of everything else. Family of 3.

Why can’t you believe them?
by delamer
Tue Jul 17, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Questions for my Parents
Replies: 19
Views: 1298

Re: Social Security Questions for my Parents

Hi - I am asking this question on behalf of my parents who are each 64 and full retirement age is 66. They are not doing great financially and are both are still working part time. They still owe money on their mortgage and have credit card debt, which I am going to work on having them retire by dr...
by delamer
Tue Jul 17, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Wills
Replies: 54
Views: 2718

Re: Wills

The biggest hurdle for us (and the reason we waited so long), was deciding who we wanted to become guardians for our children. This has always been our problem and the reason, to this day that we don't have a will. Our youngest turns 18 in 2 months, so I'm actually completely happy with how our sta...
by delamer
Tue Jul 17, 2018 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Another student loan question
Replies: 24
Views: 1016

Re: Another student loan question

I currently owe $54,135 (due to the aforementioned income-based repayment plan that didn't cover all of the accruing interest). I'm on a graduated repayment plan, paying about $400 a month, and dreading when it goes up again in two more years. My current interest rate is at 7.625 percent. Otherwise...
by delamer
Tue Jul 17, 2018 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: SS estimate and when you stop working
Replies: 2
Views: 403

Re: SS estimate and when you stop working

If you have 35 years of earnings at age 58, the age 62 estimate will be very close. Each of the 35 years will be indexed to wage changes over your lifetime.

https://www.ssa.gov/oact/cola/Benefits.html
by delamer
Tue Jul 17, 2018 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Questions for my Parents
Replies: 19
Views: 1298

Re: Social Security Questions for my Parents

Hi - I am asking this question on behalf of my parents who are each 64 and full retirement age is 66. They are not doing great financially and are both are still working part time. They still owe money on their mortgage and have credit card debt, which I am going to work on having them retire by dr...
by delamer
Mon Jul 16, 2018 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a vacation home while renting
Replies: 61
Views: 3515

Re: Buy a vacation home while renting

Nate79 wrote:
Mon Jul 16, 2018 10:07 pm
Pay off the student loans before even entertaining the idea.
Seconding this.
by delamer
Mon Jul 16, 2018 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Families - What's your total annual credit card spend?
Replies: 87
Views: 5509

Re: Families - What's your total annual credit card spend?

Seems to be the concensus that everyone puts as much as possible on their cards.

That said, knowing expenses without knowing income doesn’t provide much useful information.
by delamer
Mon Jul 16, 2018 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Questions for my Parents
Replies: 19
Views: 1298

Re: Social Security Questions for my Parents

I am not one of the forum’s Social Security experts, but I know your mother can collect 1/2 of your father’s age 66 FRA benefit if she waits to file at 66. That will bring her $300 more than her own benefit. As someone mentioned earlier, the reduction in benefits if you have earned income is only tr...
by delamer
Mon Jul 16, 2018 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 99
Views: 8900

Re: What rate of return are you using for retirement projections?

McGowan wrote:
Mon Jul 16, 2018 8:00 pm
Silly question maybe but do all these returns include dividends? I think Bogle's does include them.
It should be total returns with dividends reinvested.
by delamer
Mon Jul 16, 2018 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Any guidelines on going pre or post tax for pension HAS.
Replies: 8
Views: 308

Re: Any guidelines on going pre or post tax for pension HAS.

Very interesting.

For the $15K negative effect, is that based on just one year of taking the $700 pretax or three years?
by delamer
Mon Jul 16, 2018 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Any guidelines on going pre or post tax for pension HAS.
Replies: 8
Views: 308

Re: Any guidelines on going pre or post tax for pension HAS.

I have never heard of a pension where the salary used in the calculation was reduced due to any kind of pre-tax deduction.
by delamer
Mon Jul 16, 2018 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for young colleague please
Replies: 26
Views: 2049

Re: Advice for young colleague please

I’d recommend the debt snowball method to her: https://www.nerdwallet.com/blog/finance/what-is-a-debt-snowball/ I’d also recommend she cancel a couple of the credit cards. There is no need for a single person her age to have 5 credit cards; it is just temptation. The main issue though is how much sh...
by delamer
Mon Jul 16, 2018 12:36 pm
Forum: Personal Consumer Issues
Topic: Alaska Trip/Cruise Summer of 2020. Help me plan
Replies: 23
Views: 1530

Re: Alaska Trip/Cruise Summer of 2020. Help me plan

This type of trip might work: https://www.hollandamerica.com/en_US/cr ... rneys.html

We did a 7 day Alaska cruise on HAL, but did not add a land tour.
by delamer
Mon Jul 16, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Home Equity Loan: anyone have experience?
Replies: 7
Views: 605

Re: Home Equity Loan: anyone have experience?

I'm seeking a home equity loan, not a HELOC. I would need an immediate cash amount, the max I can get which appears to be 90% of the home equity from U.S. Bank at least. Sorry, my mistake. Don’t regular mortgages have lower interest rates than fixed-rate home equity loans? Have you considered a cas...
by delamer
Mon Jul 16, 2018 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Bored
Replies: 25
Views: 3383

Re: Bored

I learn something from this forum almost every day. You certainly don’t want to assume that your finances are all set for a few decades just becuase you know so much more now than you did a year or two ago. Think of it like the continuing education that is required of physicians, CPAs, etc. There is...
by delamer
Mon Jul 16, 2018 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Home Equity Loan: anyone have experience?
Replies: 7
Views: 605

Re: Home Equity Loan: anyone have experience?

We took one out last fall. We got the best deal through TD Bank, with no fees. Appraisal was drive by. There is a small ($25 or $50) annual fee, and we’d have to reimburse them for closing costs if we close it out within 3 years. Zero balance is OK; just can’t close it. And we had to open a free che...
by delamer
Sun Jul 15, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: want to improve returns by 1%/year on a portfolio
Replies: 6
Views: 790

Re: want to improve returns by 1%/year on a portfolio

If a 1% percentage difference in return for 7 years determines whether she can retire or not, then she probably is cutting things too close. As others have said, taking more risk increases the likelihood she’ll make her goal but also means that she could fall even more short (relative to a less risk...
by delamer
Sun Jul 15, 2018 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Property tax + deductions
Replies: 15
Views: 1565

Re: Property tax + deductions

Try the TaxCaster app. It’s for 2017, but there is an option to estimate 2018 federal taxes. The issue is that the standard deduction for a married couple is now $24,000. So with property taxes plus state and local taxes capped at $10,000, then your mortgage interest and other deductions must be $14...
by delamer
Sun Jul 15, 2018 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Helping parent invest small windfall near retirement
Replies: 14
Views: 1039

Re: Helping parent invest small windfall near retirement

There is a good chance your mother could live another 30 years. So just because she has a relatively short time until she retires does not mean her investing horizon is short too. While a high stock exposure probably does not make sense given her limited assets, an investment like the Vanguard LifeS...
by delamer
Sun Jul 15, 2018 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Are Credit Cards Actually Convenient?
Replies: 65
Views: 3693

Re: Are Credit Cards Actually Convenient?

I have not shared your experience with credit cards. I have never had one declined. In fact, it has become easier and easier to just swipe and not even sign. I have even used mine overseas without any issues. Are you sure you aren’t running up against credit limits or some other issue with your cards?
by delamer
Sun Jul 15, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: Has the range of expected stock market returns ever been larger than today?
Replies: 15
Views: 1396

Re: Has the range of expected stock market returns ever been larger than today?

First, I have to ask the OP — what is an “individual deformity poster”!? :wink: Second, and more to the point, based on our retirement portfolio over the last 26 years, we have had an annual average real return of 5.3%. We were never 100% stocks, so this reflects investments in bonds and cash too. A...