Search found 6380 matches

by delamer
Fri Dec 14, 2018 10:13 pm
Forum: Investing - Theory, News & General
Topic: High Load and ERs
Replies: 2
Views: 141

Re: High Load and ERs

It isn’t clear what your question is.

Certainly you should encourage your daughter to transfer her funds to Vanguard, Schwab, etc. and offer to help with the paperwork.
by delamer
Fri Dec 14, 2018 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing all retirement funds
Replies: 2
Views: 146

Re: Rebalancing all retirement funds

Your allocation looks good, except it isn’t clear why you are considering the GNMA fund. Put more into the Total Bond fund in your account instead to get to the 25%. Yes, make all the changes at once. If this a bad time to buy bonds, what would be a good time? That’s the problem with trying to time ...
by delamer
Fri Dec 14, 2018 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Withholding options
Replies: 4
Views: 241

Re: Withholding options

I'm sorry but this post left me a bit confused as I don't understand exactly what the questions is. However, I can tell you that if you can properly estimate your next years tax withholding obligations you should be able to adjust both of your withholdings in order to take just the amount needed to...
by delamer
Fri Dec 14, 2018 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring next year, would appreciate some advice
Replies: 20
Views: 1197

Re: Retiring next year, would appreciate some advice

I don’t understand why you would consider taking the lump sum rather than the pension; the annuity is so much higher than the potential SWR. The only exception would be if the pension would disappear if you predecease your wife. What would your wife receive as a survivor’s benefit if you die first? ...
by delamer
Fri Dec 14, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Forgoing health insurance
Replies: 72
Views: 1999

Re: Forgoing health insurance

You are saying one of two things if you go without health insurance: 1. We can’t provide our children with the basic necessity of health insurance coverage, because our income is too low. 2. We don’t want to provide our children with the basic necessity of health insurance, because we have higher pr...
by delamer
Fri Dec 14, 2018 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Financing mortgage closing costs - to do or not to do?
Replies: 13
Views: 921

Re: Financing mortgage closing costs - to do or not to do?

Flamesuit ON! I personally am not against financing closing costs if you are in a low prop tax state. This can help (in my uneducated opinion) elevate the value of your house in the future (and those houses selling around you) as sold data is reviewed by potential buyers. Helps artificially inflate...
by delamer
Fri Dec 14, 2018 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Allocation when cost of living expenses covered
Replies: 23
Views: 1188

Re: Allocation when cost of living expenses covered

One thing to look at is what will be the income for each of you if the other passes and how that stacks up to expenses. One SS, reduced or no pension income?, annuity? tax filing single vs joint, etc. In our case my wife will lose her SS and 1/2 my pension income. I would lose only her much smaller...
by delamer
Thu Dec 13, 2018 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Financing mortgage closing costs - to do or not to do?
Replies: 13
Views: 921

Re: Financing mortgage closing costs - to do or not to do?

Flamesuit ON! I personally am not against financing closing costs if you are in a low prop tax state. This can help (in my uneducated opinion) elevate the value of your house in the future (and those houses selling around you) as sold data is reviewed by potential buyers. Helps artificially inflate...
by delamer
Thu Dec 13, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation when cost of living expenses covered
Replies: 23
Views: 1188

Re: Allocation when cost of living expenses covered

We are in exactly the same position (SS plus pensions covering all expenses) at the same ages. We have exactly the opposite allocation — 70% stocks and 30% cash/bonds. Our philosophy is that we can easily handle the risk/volatility of stocks. So why not invest for the long-term higher return to bene...
by delamer
Thu Dec 13, 2018 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Financing mortgage closing costs - to do or not to do?
Replies: 13
Views: 921

Re: Financing mortgage closing costs - to do or not to do?

One factor is how long you expect to keep the property and/or loan.

Shorter term means finance the closing costs.

Longer term means pay the closing costs.
by delamer
Thu Dec 13, 2018 11:08 am
Forum: Personal Consumer Issues
Topic: Buying used car
Replies: 25
Views: 1133

Re: Buying used car

Even if the minivan went into service in Fall 2014, that is nearly 20,000 miles per year. I’d pass unless the price was really good. This is the entire premise of buying a used car. I don’t understand your comment. While used cars are priced lower than a new model of the same car, that doesn’t mean...
by delamer
Thu Dec 13, 2018 10:45 am
Forum: Personal Consumer Issues
Topic: Buying used car
Replies: 25
Views: 1133

Re: Buying used car

Even if the minivan went into service in Fall 2014, that is nearly 20,000 miles per year. I’d pass unless the price was really good. This is the entire premise of buying a used car. I don’t understand your comment. While used cars are priced lower than a new model of the same car, that doesn’t mean...
by delamer
Wed Dec 12, 2018 11:55 pm
Forum: Personal Consumer Issues
Topic: Buying used car
Replies: 25
Views: 1133

Re: Buying used car

Even if the minivan went into service in Fall 2014, that is nearly 20,000 miles per year.

I’d pass unless the price was really good.
by delamer
Wed Dec 12, 2018 11:51 pm
Forum: Investing - Theory, News & General
Topic: Recession Coming
Replies: 49
Views: 5840

Re: Recession Coming

"Dry powder" can mean investments in fixed income like Treasuries, CD's, short-term bond funds, etc., which can be liquidated to buy equities when they drop. In other words, rebalancing. It is an argument used to explain why not to be 100% stocks. It doesn't automatically mean money out of the mark...
by delamer
Wed Dec 12, 2018 5:16 pm
Forum: Investing - Theory, News & General
Topic: Recession Coming
Replies: 49
Views: 5840

Re: Recession Coming

Portfolio7 wrote:
Wed Dec 12, 2018 5:01 pm
What is this dry powder you speak of? My money is in savings, or it's invested - it doesn't sit around waiting for events I can't time...
Yup. My allocation is in place. If there is a big enough change in the markets, then I’ll rebalance.
by delamer
Wed Dec 12, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Lost value in 529 savings
Replies: 23
Views: 1561

Re: Lost value in 529 savings

You should look at the other investment options in the 529. There is probably a stable value fund/money market fund that you could use for some of the money (although don’t avoid stocks altogether). We hardly get to understand these investments. IL Brightstart Age based was simple for us to underst...
by delamer
Wed Dec 12, 2018 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Lost value in 529 savings
Replies: 23
Views: 1561

Re: Lost value in 529 savings

OK, I got what everyone is saying. So this year again I can contribute another 20K into 529 savings :) Hopefully the 2008 never repeats again :( You should look at the other investment options in the 529. There is probably a stable value fund/money market fund that you could use for some of the mon...
by delamer
Tue Dec 11, 2018 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Not accepting Medicare benefits
Replies: 24
Views: 4048

Re: Not accepting Medicare benefits

The IRMAA surcharges for any given year are based on your Modified Adjusted Gross Income (MAGI) from 2 years prior. So for 2019 the IRMAA surcharge is based on your 2017 MAGI. For Medicare, MAGI is your AGI from your 1040 plus your tax exempt interest income. There are a limited number of ways to a...
by delamer
Tue Dec 11, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds or CD's
Replies: 5
Views: 512

Re: Bonds or CD's

1. You could use a bond fund that invests solely in government bonds, rather than one that has a large dose of private sector bonds (take your risk in your stock portfolio).

2. This isn’t an either/or situation. Put some in CDs and some in bonds.
by delamer
Tue Dec 11, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: New Retiree Investment Strategy
Replies: 19
Views: 1933

Re: New Retiree Investment Stratedgy

I appreciate everyone's reply and respect your wisdom. I fully understand the focus on Total Return and I agree. I have been investing in Vanguard funds since about 1990. While I am at 75% REIT, that's just my stocks. At this time, that only represents about half of my portfolio. And within the REI...
by delamer
Tue Dec 11, 2018 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Windfall predicament
Replies: 20
Views: 2554

Re: Windfall predicament

Funny how things change. We are looking into 529's for college and the separate stock and bond index funds that gradually reallocate over the long haul until we hit some of our target dates. The next concern is how much do I contribute into the 529's? PA's 529 allows deductions up to $28,000 filed ...
by delamer
Tue Dec 11, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Income is greatly reduced. When would you absolutely stop 401k contributions?
Replies: 12
Views: 1542

Re: Income is greatly reduced. When would you absolutely stop 401k contributions?

Just to answer some questions above.... 1) With her salary and other income, we can cover about 60% of pre-tax expenses, including mortgage. We are mid 40s, two middle school kids. 2) She's not employed by the S corp. Her 401k doesn't have an official match, but the employer typically makes an end ...
by delamer
Tue Dec 11, 2018 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Too Much Savings Regret
Replies: 112
Views: 16836

Re: Too Much Savings Regret

Exactly. As a 32 year old this possibility haunts me to no end. Indeed. Because you can't get those years back. Ever. I don’t remember who said it but this expression sums it up best: “money is a renewable resource; time is not.” The advantage of having a high income is you get to live for today an...
by delamer
Mon Dec 10, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Income is greatly reduced. When would you absolutely stop 401k contributions?
Replies: 12
Views: 1542

Re: Income is greatly reduced. When would you absolutely stop 401k contributions?

I agree with those above who said we really need more information to give you good advice, including your wife’s income and your fixed expenses. Primary breadwinner is a pretty broad term. Do you make 90% of the income or 55%? Can you get health insurance through your wife’s job? Good luck finding a...
by delamer
Mon Dec 10, 2018 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall predicament
Replies: 20
Views: 2554

Re: Windfall predicament

Thank you for all the great advice. It's funny how much my opinions have changed in just a few days. I've been really looking into the 529 and I will say I had a distorted opinion of it. I obviously do not have any sort of account yet, but how hard would it be to redirect the dividends and capital ...
by delamer
Sun Dec 09, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Parents with Retirement
Replies: 36
Views: 4403

Re: Helping Parents with Retirement

Now that I've got everything in Vanguard, I've done some more research and I am planning to change their portfolios all to the Vanguard Balanced Index Fund VBIAX. Vanguard gives some free trades up to a certain number so I think I can sell most of it with minimal fees and since most of it is in tax...
by delamer
Sun Dec 09, 2018 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall predicament
Replies: 20
Views: 2554

Re: Windfall predicament

Thanks for the replies. I appreciate the feedback. My concerns were the following: 1. Life Strategy Growth- How does using separate index stock and bond funds make it easier to reallocate funds? I just assumed I could move to the moderate plan and then conservative, etc, when the time came. 2. 529 ...
by delamer
Sun Dec 09, 2018 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Has anyone adjusted their stock allocation on the dip?
Replies: 39
Views: 3273

Re: Has anyone adjusted their stock allocation on the dip?

Are you asking about rebalancing or reallocating?

Two different things.
by delamer
Sun Dec 09, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: does the 4% withdrawal guideline include dividends?
Replies: 43
Views: 2979

Re: does the 4% withdrawal guideline include dividends?

The question for me is whether the RMD is counted into the 4% guideline such like dividends is and secondly, at my age 5% is calculated for me to take from my portfolio each year....should that also apply to the 4% guideline increasing the amount of the withdrawal? The 4% is based on spending that ...
by delamer
Sun Dec 09, 2018 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: AA [Asset Allocation]
Replies: 5
Views: 419

Re: AA [Asset Allocation]

Any money that you want to use to make a purchase in 2 years should be in cash.
by delamer
Sun Dec 09, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall predicament
Replies: 20
Views: 2554

Re: Windfall predicament

Thanks for the replies. I appreciate the feedback. My concerns were the following: 1. Life Strategy Growth- How does using separate index stock and bond funds make it easier to reallocate funds? I just assumed I could move to the moderate plan and then conservative, etc, when the time came. 2. 529 ...
by delamer
Sun Dec 09, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: does the 4% withdrawal guideline include dividends?
Replies: 43
Views: 2979

Re: does the 4% withdrawal guideline include dividends?

Opportunity for me to ask a question: You say the 4% rule is taking out 4% of the year 0 amount. I guess I had always assumed it was taking 4% of the current portfolio amount? In other words, if your year 0 portfolio is 1M, you can take 40,000. If by year 5 your portfolio is worth 1.3M, you could t...
by delamer
Sun Dec 09, 2018 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Age 60, portfolio review for possible retirement soon
Replies: 9
Views: 1529

Re: Age 60, portfolio review for possible retirement soon

I was in a similar situation with rationalizing an inherited taxable portfolio, and it can be painful. I started with getting rid of small positions with high costs, like the Buffalo and Mathews funds in your case. I kept low cost funds, like your Schwab holdings. Some positions I reduced but did no...
by delamer
Sun Dec 09, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall predicament
Replies: 20
Views: 2554

Re: Windfall predicament

While 80/20 is OK for now, you should have a plan to gradually decrease the stock allocation as you get closer to your spending date(s). Consider using separate stock and bond funds (instead of a LifeStrategy fund) to make it easier to adjust your allocation over time. Also, look into a 529 plan for...
by delamer
Sun Dec 09, 2018 1:02 pm
Forum: Investing - Theory, News & General
Topic: does the 4% withdrawal guideline include dividends?
Replies: 43
Views: 2979

Re: does the 4% withdrawal guideline include dividends?

The 4% rule is a terrible rule. Most people (outside of this blog) never make it to below 4%, you have to assume future expenses, and it encourages you to spend a certain amount even if you don't have to. That being said, it's the best we have, as far as a simple recommendation. It includes everyth...
by delamer
Sun Dec 09, 2018 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: AA [Asset Allocation]
Replies: 5
Views: 419

Re: AA

What is the ultimate purpose of the $15,000 — retirement, new car, second home, etc.?
by delamer
Sat Dec 08, 2018 11:49 am
Forum: Investing - Theory, News & General
Topic: How to know what expected price is for index funds/ETFs?
Replies: 4
Views: 286

Re: How to know what expected price is for index funds/ETFs?

No one knows what the price of VTI or any other stock investment will be, in the short-run or the long-run.

If anyone tells you otherwise, they are lying.
by delamer
Sat Dec 08, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Setting up for 2019 (Married Couple M/30.F/26)
Replies: 6
Views: 586

Re: Setting up for 2019 (Married Couple M/30.F/26)

For your retirement money, here are suggestions for low cost, index based portfolios: https://www.bogleheads.org/wiki/Lazy_portfolios I wouldn’t worry too much about the Admiral versus Investor designation. The difference in expense ratios is small and you’ll get converted to Admiral automatically o...
by delamer
Sat Dec 08, 2018 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Single, self employed, 45k in debt, 375k in equity. what’s my move?
Replies: 16
Views: 1483

Re: Single, self employed, 45k in debt, 375k in equity. what’s my move?

If the music career is your priority then it makes sense to have your assets in a very safe, very liquid form. You are taking lots of risks in the income side. Don’t do it on the asset side too. So yes, sell the house and put your money in some CDs and a high yield savings account. Now if you asked ...
by delamer
Fri Dec 07, 2018 11:38 pm
Forum: Investing - Theory, News & General
Topic: What's Your Personal Inflation Rate?
Replies: 38
Views: 2504

Re: What's Your Personal Inflation Rate?

But, bring this back to what I think the OP was exploring. (I’m speculating that the title of the post may not be precisely what he was after.) The standard response to anyone stating they are allocating a large percentage of cash is ‘you’ll lose to inflation...you need more equities because of inf...
by delamer
Fri Dec 07, 2018 11:09 pm
Forum: Investing - Theory, News & General
Topic: What's Your Personal Inflation Rate?
Replies: 38
Views: 2504

Re: What's Your Personal Inflation Rate?

Inflation, as measured by the CPI, measures the change in prices of a fixed set of items. So if chicken thighs are one of the items and the price of chicken thighs goes up, it will cause an increase in the index. Your substitution of pork chops for chicken thighs isn’t reflected in the CPI changes....
by delamer
Fri Dec 07, 2018 6:16 pm
Forum: Investing - Theory, News & General
Topic: Three Funds for Retirement Years
Replies: 8
Views: 1171

Re: Three Funds for Retirement Years

The 3 fund portfolio is appropriate no matter your age. The allocation between the 3 funds would/should vary by age however. A 25-year-old might have 60% in US stocks, 25% in international stocks, and 15% in bonds. A 70-year-old, on the other hand, might have 40% in US stocks, 10% in international s...
by delamer
Fri Dec 07, 2018 4:14 pm
Forum: Personal Consumer Issues
Topic: Retaining mental sharpness in retirement communities?
Replies: 8
Views: 1420

Re: Retaining mental sharpness in retirement communities?

The CCRC’s with which I am familiar offer multiple activities ranging from exercise classes to bridge tournaments to transportation to symphony performances. As someone said earlier, it will be up to you and your wife to stay mentally and physically active. The opportunities to do so will be plentif...
by delamer
Fri Dec 07, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: What's Your Personal Inflation Rate?
Replies: 38
Views: 2504

Re: What's Your Personal Inflation Rate?

Inflation, as measured by the CPI, measures the change in prices of a fixed set of items. So if chicken thighs are one of the items and the price of chicken thighs goes up, it will cause an increase in the index. Your substitution of pork chops for chicken thighs isn’t reflected in the CPI changes. ...
by delamer
Fri Dec 07, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Stressed/Job loss/Retirement possible?
Replies: 34
Views: 3972

Re: Stressed/Job loss/Retirement possible?

There are two stages to your retirement — 1) pre-Social Security and 2) Social Security and later. To get to Social Security, all your spending (plus income taxes) has to come out of your savings. Depending when you take SS, you will need to spend roughly $1.5 million (excluding taxes) to get throug...
by delamer
Fri Dec 07, 2018 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: A simple will (vs. trust) for a simple guy?
Replies: 11
Views: 1106

Re: A simple will (vs. trust) for a simple guy?

While bsteiner certainly doesn’t need my support to make his point, I did want to emphasize the above to the OP. A trust (or trusts) that is created by the terms of your will once die could be beneficial to your siblings/nieces/nephews. A trust could protect their inheritance, for the reasons noted...
by delamer
Thu Dec 06, 2018 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: A simple will (vs. trust) for a simple guy?
Replies: 11
Views: 1106

Re: A simple will (vs. trust) for a simple guy?

Probating a Will is Florida is generally not difficult, expensive or burdensome, so that shouldn't be a concern. If your siblings are concerned about estate taxes in their estates, or protection against their creditors and spouses (both current and future) and Medicaid, then you should provide for ...
by delamer
Thu Dec 06, 2018 6:06 pm
Forum: Investing - Theory, News & General
Topic: Why are market corrections "healthy"?
Replies: 27
Views: 2011

Re: Why are market corrections "healthy"?

I don’t see them as healthy, so much as inevitable.

They are just part of the price you pay for taking risk.
by delamer
Wed Dec 05, 2018 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Financially Able to Retire?
Replies: 21
Views: 3236

Re: Financially Able to Retire?

It sounds like you’ll need to withdraw about $350,000 (in today’s dollars) from your 401(k) until you get to your FRA to cover your expenses (in addition to your pension). At FRA, you’ll need to withdraw little or nothing from savings to meet your expenses. This is a simple post with a lot of insig...
by delamer
Tue Dec 04, 2018 10:34 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Vanguard advice
Replies: 22
Views: 3229

Re: Thoughts on Vanguard advice

Are you already retired?