Search found 6363 matches

by delamer
Tue Dec 11, 2018 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Not accepting Medicare benefits
Replies: 22
Views: 3544

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: 484

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: 1724

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: 2520

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: 1526

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: 16427

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: 1526

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: 2520

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: 4396

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: 2520

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: 3255

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: 2953

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: 417

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: 2520

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: 2953

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: 1507

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: 2520

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: 2953

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: 417

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: 284

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: 584

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: 1474

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: 2491

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: 2491

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: 1165

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: 1416

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: 2491

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: 3955

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: 1101

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: 1101

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: 1997

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: 3229

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: 3192

Re: Thoughts on Vanguard advice

Are you already retired?
by delamer
Tue Dec 04, 2018 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Financially Able to Retire?
Replies: 21
Views: 3229

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. I don’t see a problem, assuming your expen...
by delamer
Tue Dec 04, 2018 10:15 pm
Forum: Investing - Help with Personal Investments
Topic: 58 y/o nearing retirement - looking at economic/stock market indicators
Replies: 36
Views: 5124

Re: 58 y/o nearing retirement - looking at economic/stock market indicators

Not totally set by any means. 25/50/25 Stocks/CDs/Cash Equal amount in rental property, couple of small pensions kicking in later with social security. Rental income and may even reverse mortgage my home later if necessary. Good salary, Want to work for 2-3 more years. Perhaps a bit of consulting a...
by delamer
Tue Dec 04, 2018 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Selling stock +?
Replies: 7
Views: 845

Re: Selling stock +?

Could you just take the dividends in cash instead of having them reinvested? That would presumably avoid the fee, and you'd stop adding to your position. PPL is around $31/share right now, so you have about $37,000 worth. Even if that entire amount was a capital gain, you'd only be looking at ~$550...
by delamer
Tue Dec 04, 2018 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Why Is Insurance Worth It (Analytically)?
Replies: 89
Views: 4181

Re: Why Is Insurance Worth It (Analytically)?

It is interesting that you post this as a theoretical question, rather than providing a real-life situation that you have considered. Say you don’t have homeowner’s insurance (yes, I remember you from the other thread). And your home sustains severe damage in a fire — $200,000 damage including rebui...
by delamer
Tue Dec 04, 2018 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Thinking about downsizing car
Replies: 27
Views: 1835

Re: Thinking about downsizing car

I would target a specific replacement car and determine how much you’d actually save on gas and insurance with it. And whether you could buy one for less than $25K.

But drive the replacement before you decide anything.
by delamer
Tue Dec 04, 2018 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Life Advice (Financial + Health)
Replies: 17
Views: 1560

Re: Life Advice (Financial + Health)

I am going to take a more radical position and suggest that you are in the wrong field, or at least job. You have a family history of high blood pressure issues and at age 29 you are suffering from the same problem while at work. Unless you get some kind of psychological help that shows real results...
by delamer
Tue Dec 04, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4104

Re: Will we make it saving only in employer plans?

lots of areas are $8 k (or less, down to $6 k) for a kid (enough places don’t charge a full 2X if both are there) https://www.bostonglobe.com/2014/07/02/map-the-average-cost-for-child-care-state/LN65rSHXKNjr4eypyxT0WM/story.html This data is simply wrong/out of date for urban/suburban areas of medi...
by delamer
Tue Dec 04, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Question about long term care
Replies: 8
Views: 951

Re: Question about long term care

Will the state have access to the $7000.00 before they help pay for the cost of long term care? I'm not too worried about the term life insurance (I think it's for 10 or 15 years, I will check on that also. I'm concern about the in between stage of the life. You should check out the Medicaid regula...
by delamer
Tue Dec 04, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4104

Re: Will we make it saving only in employer plans?

lots of areas are $8 k (or less, down to $6 k) for a kid (enough places don’t charge a full 2X if both are there) https://www.bostonglobe.com/2014/07/02/map-the-average-cost-for-child-care-state/LN65rSHXKNjr4eypyxT0WM/story.html This data is simply wrong/out of date for urban/suburban areas of medi...
by delamer
Tue Dec 04, 2018 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4104

Re: Will we make it saving only in employer plans?

Once you are retired, you’ll definitely no longer have these (current) expenses: Payroll taxes Commuting costs Retirement savings Day care costs So even if nothing else changes, your expenses will drop significantly. And if you plan right, you will no longer have a mortgage (no P&I). You will have S...
by delamer
Mon Dec 03, 2018 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5016

Re: Out of Stocks to Pay Off Mortgage

You are missing the point of insurance. It designed to provide coverage against catastrophic loss. Which I don't need or want... My insurance is the fact that I can afford to rent or buy another house plus the 1000 compounded I put away every year into my AA. We can agree to disagree on this. We ar...
by delamer
Mon Dec 03, 2018 5:48 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns is Signing Off -- He'll be missed
Replies: 31
Views: 9066

Re: Scott Burns is Signing Off -- He'll be missed

ShaunSCO wrote:
Mon Dec 03, 2018 2:59 pm
Good afternoon. I'm new to the forum (as of today), and thought you'd like to know that Scott Burns is back online at:

https://couchpotatoinvesting.com/
Great news!

Thanks.
by delamer
Mon Dec 03, 2018 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5016

Re: Out of Stocks to Pay Off Mortgage

At the risk of being skewered alive, one benefit to paying off mortgage is to not pay for homeowner's insurance going forward. Others are: 2. Fewer assets exposed to creditors, suers (if home is under 250-500k) 3. Simplicity 4. Higher risk adjusted return (Do you hold ANY bonds yield under 4.65%? E...
by delamer
Mon Dec 03, 2018 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5016

Re: Out of Stocks to Pay Off Mortgage

At the risk of being skewered alive, one benefit to paying off mortgage is to not pay for homeowner's insurance going forward. Others are: 2. Fewer assets exposed to creditors, suers (if home is under 250-500k) 3. Simplicity 4. Higher risk adjusted return (Do you hold ANY bonds yield under 4.65%? E...
by delamer
Mon Dec 03, 2018 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3793

Re: Basic Bucket Theory

Ok, after reading all the comments (thank you all) regarding my initial idea of having several buckets I have a new plan... Bucket 1: 2 years of living expenses in a money market fund. Bucket 2: 25 years of living expenses with this allocation: 40% vtsax, 10% vtiax, 50% vbtlx I will be retiring in ...
by delamer
Mon Dec 03, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Adjusting annual withdrawal % based on previous year performance
Replies: 3
Views: 323

Re: Adjusting annual withdrawal % based on previous year performance

It isn’t clear if you want to use a variable withdrawal rate or if you are talking about the 4% constant method. The 4% constant SWR doesn’t take into account your portfolio performance from year to year. It is 4% of your portfolio value at retirement. That dollar amount is adjusted each year for in...
by delamer
Mon Dec 03, 2018 10:53 am
Forum: Investing - Theory, News & General
Topic: Older Dads - how do you plan for your own retirement while still raising kids?
Replies: 38
Views: 5060

Re: Older Dads - how do you plan for your own retirement while still raising kids?

I’m not sure if it is any harder for older parents. Should be easier as you have more time to let the education funds compound before you need it. You basically just deferred the expense to a later point in life. May have made you feel richer than you were. I don’t think there is any secret to this...