Search found 3463 matches

by delamer
Wed Jan 17, 2018 10:19 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help for Retiree
Replies: 5
Views: 397

Re: Portfolio Help for Retiree

What do you mean by “preserve my principal?”

Do you mean that you don’t want the dollar value of your investments to fluctuate? If that is the case, then your only option is to keep your assets in cash equivalents — savings accounts, money market funds, CDs.
by delamer
Wed Jan 17, 2018 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: Federal pension Vs Higher salary + 401k savings plan
Replies: 17
Views: 1358

Re: Federal pension Vs Higher salary + 401k savings plan

You can probably cut down on medicare costs by quite a bit (as alluded to up post). I just learned about this, despite having worked as a Fed for five years. IIRC, the government picks up their portion of your premium as well. So your federal employee health insurance will pay your Medicare premium...
by delamer
Wed Jan 17, 2018 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Take a 401k Loan?
Replies: 28
Views: 1113

Re: Take a 401k Loan?

You really do not have a handle on your finances. It seems like with each thread you are trying to undo a move you made previously (and asked about on here beforehand). Too much tinkering. Mortfree has a point. You have a good combined income. Get the mortgage refinanced on your wife’s salary, keep...
by delamer
Wed Jan 17, 2018 9:32 pm
Forum: Personal Consumer Issues
Topic: How to overcome the fear of spending money? (Buying a car)
Replies: 30
Views: 1698

Re: How to overcome the fear of spending money? (Buying a car)

How much of your net worth is the car? 1.4% of net worth Go ahead and buy it. It's a rounding error. Pay cash. Maybe these line of thinking may help - it's within range of portfolio noise on some days - money is meant to be spent (within reason) - you have saved up this much, enjoying some of the m...
by delamer
Wed Jan 17, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: 401k loan payback
Replies: 2
Views: 114

Re: 401k loan payback

You could, and maybe will, get your pullback after a 15% upturn. Are you better off waiting then?

Pay off the loan.
by delamer
Wed Jan 17, 2018 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Take a 401k Loan?
Replies: 28
Views: 1113

Re: Take a 401k Loan?

If your wife makes enough money to get the mortgage on her own, it seems that you should have the liquidity to pay off the credit cards pretty quickly by cutting expenses without taking out the 401(k) loan. Don’t take 20%+ out of your 401(k); “targeting”to pay off the loan in a couple years is no g...
by delamer
Wed Jan 17, 2018 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Diversification
Replies: 8
Views: 372

Re: Diversification

It would be worthwhile, if you haven’t already, to lay out your income and expenses in your currect semi-retirement and your future full retirement. While it makes sense to have some cash to cover expenses, the needed size of that cash reserve depends on the difference between your expenses and your...
by delamer
Wed Jan 17, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Federal pension Vs Higher salary + 401k savings plan
Replies: 17
Views: 1358

Re: Federal pension Vs Higher salary + 401k savings plan

The federal retiree health insurance benefit is nearly as valuable as the pension in today’s health insurance environment. And you didn’t even mention the match for the TSP.

That said, there is no way I’d live apart from my spouse and kids for 2 or 3 years.
by delamer
Wed Jan 17, 2018 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Take a 401k Loan?
Replies: 28
Views: 1113

Re: Take a 401k Loan?

The mortgage company said she could be on the loan by herself since my credit has tanked to about 600 due to the debt. Please let your wife get the refinance with a higher credit score. Does she make enough to qualify for the loan by herself? Otherwise stick with paying off the credit cards, then l...
by delamer
Wed Jan 17, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Are these benefits from my employer good ?
Replies: 4
Views: 436

Re: Are these benefits from my employer good ?

The issue with long-term disability and life insurance is that individual policies are cheaper to buy when you are younger. So if you lose your job when you are older and you lose those work-provided benefits, it may be very expensive to replace them with individual policies. We always had individua...
by delamer
Wed Jan 17, 2018 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Let's hear (or see) your budget tools
Replies: 4
Views: 518

Re: Let's hear (or see) your budget tools

Our budget is annual. We have enough float/accessible savings that it doesn’t matter if we spend a disproportionate chunk of our “dining out” money in one month because we have out-of-town visitors, for example. Someone in another thread mentioned $8,000 per year on dining out. While that is somethi...
by delamer
Tue Jan 16, 2018 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: Got raise. Taxes taking 41% of it?
Replies: 30
Views: 3728

Re: Got raise. Taxes taking 41% of it?

I know it doesn't feel like at this time but Medicare and SS taxes are "investments/savings/benefits" for your future. Hopefully, they will be there for you like they are and will be for me and my spouse. I am retired and will begin to collect SS at age 70 in March. It is almost equal to my pension...
by delamer
Tue Jan 16, 2018 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4227

Re: Budgeting Vs Savings Rate

I prepaid mortgage for 1/2018 in December and simply did not budget for a January 2018 payment. The money was not assigned for a double payment, but I had the money (since I made the payment) and moved cash to cover (I hate red categories). I haven't tried to make a prepayment where I needed to wai...
by delamer
Tue Jan 16, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 83
Views: 5506

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

There seems to be a lot of fear on this forum, and that surprises me. When I joined three months ago, I was hoping to find a group of investors who followed the investment philosophies of John Bogle. I was looking for encouragement, yet every day one or more people post that a crash is coming and t...
by delamer
Tue Jan 16, 2018 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Funds
Replies: 13
Views: 1506

Re: Target Retirement Funds

The other issue not addressed is whether the Target Date funds have the asset allocation that you prefer, and whether you are comfortable with the allocation changing based on the managers’ decisions over time. If you can answer yes to both of those with the Vanguard fund, then no reason to change. ...
by delamer
Tue Jan 16, 2018 5:33 pm
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 83
Views: 5506

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

There seems to be a lot of fear on this forum, and that surprises me. When I joined three months ago, I was hoping to find a group of investors who followed the investment philosophies of John Bogle. I was looking for encouragement, yet every day one or more people post that a crash is coming and t...
by delamer
Tue Jan 16, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implications of rebalancing
Replies: 7
Views: 489

Re: Tax implications of rebalancing

You don’t have to sell your entire stake. If you sell half, for instance, it would reduce your realized gains. Don’t forget that your state may impose a tax on capital gains in addition to the IRS. One thing that will help in the longer run with the taxable account is to discontinue reinvesting your...
by delamer
Tue Jan 16, 2018 5:11 pm
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 83
Views: 5506

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

There seems to be a lot of fear on this forum, and that surprises me. When I joined three months ago, I was hoping to find a group of investors who followed the investment philosophies of John Bogle. I was looking for encouragement, yet every day one or more people post that a crash is coming and t...
by delamer
Tue Jan 16, 2018 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance money
Replies: 5
Views: 812

Re: Inheritance money

I do not see how putting the money in an annuity will her any more control over it than putting it in a savings account. It just means that her husband can get at it in smaller amounts, rather than in a lump sum. In the previous post, you mentioned that she has two adult children who are looking out...
by delamer
Tue Jan 16, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Sell bonds during a market correction to buy cheaper equities?
Replies: 18
Views: 1680

Re: Sell bonds during a market correction to buy cheaper equities?

The simple answer is that it makes sense to rebalance your portfolio during/after a stock market correction, in order to maintain your preferred allocation. Say your target asset allocation is 80/20 and it changes to 75/25 when stock prices fall. So you sell enough bonds and buy enough stocks to get...
by delamer
Tue Jan 16, 2018 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Got raise. Taxes taking 41% of it?
Replies: 30
Views: 3728

Re: Got raise. Taxes taking 41% of it?

Since your pre-tax health insurance premium dropped, your taxable income also went up by the difference between your old and new premiums.

So in addition to the cash raise, you taxable income went up by an another $62.50.
by delamer
Tue Jan 16, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Friend Got Laid Off - Advice Needed
Replies: 46
Views: 4650

Re: Friend Got Laid Off - Advice Needed

That’s a shame. Does he have health insurance coverage through COBRA or his severance package? That would be my immediate concern. If not, or if the coverage is very short-term, then he should investigate ACA coverage. The other thing to do is figure out a barebones budget — housing, food, transport...
by delamer
Tue Jan 16, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 83
Views: 5506

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

I've read many times here that most of the market's big moves happen in just a handful of days every decade, but haven't been paying attention for long enough to actually witness it. Curious if we are now in one of those periods or if those really big days are typically even more extreme than this?...
by delamer
Tue Jan 16, 2018 11:11 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Critique for my Father
Replies: 14
Views: 1458

Re: Retirement Critique for my Father

Thank you for your comments! FiveK, What I meant was that $114k is total income and it all came from pension. $84.6k was the taxable income. Thanks for catching that, I fixed it in the post. Carl53, This is exactly the type of information I was hoping to get from this community. I just took a look ...
by delamer
Mon Jan 15, 2018 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 2
Views: 220

Re: Portfolio Advice

Leaving well enough alone isn’t a good choice. Your funds are expensive and you pay those ERs year after year as long as you hold them. So they are a constant drain on your returns. With the IRAs, you can sell your current funds and move the money into index funds without any tax consequences. There...
by delamer
Mon Jan 15, 2018 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding the Great Recession Impact
Replies: 44
Views: 3219

Re: Understanding the Great Recession Impact

Someone starting Social Security in 2002 (the year Chuck retired) received a benefit of about $1000 per month if s/he had average earnings and began collecting between age 62 and 65. Chuck was getting about $1200 by 2013, according to the Wired article. So best guess is that he had no more than aver...
by delamer
Mon Jan 15, 2018 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding the Great Recession Impact
Replies: 44
Views: 3219

Re: Understanding the Great Recession Impact

holding a sufficient supply of high-quality fixed-income is critical. People who say that bonds are as risky as stocks are omitting important details. There ain't nothin' risky about a T-bill. For sure. You know, the discussion about allocation between stocks, bonds and cash is always around % of p...
by delamer
Mon Jan 15, 2018 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Possible retirement?
Replies: 10
Views: 1050

Re: Possible retirement?

You probably can retire, but we need more information.

Do you have estimates for your Social Security benefits? At what age do you plan to take them?

How long does your spouse continue to work?

How will you get health insurance until you are 65, and is the cost reflected in your expense estimates?
by delamer
Mon Jan 15, 2018 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4227

Re: Budgeting Vs Savings Rate

Did your spouse give a reason why he/she wants to budget? I can think of a dozen different reasons from a friend suggesting it to being worried about the future. Maybe understanding why might help. I think this is the key question. If your spouse is concerned about spending in general or your spend...
by delamer
Mon Jan 15, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Standard Deduction in 2018
Replies: 10
Views: 1625

Re: Standard Deduction in 2018

I read somewhere that the standard deduction for 2018, for tax returns filed in 2019, for individuals over 65 is actually $26,600 instead of $24,000. Does anyone know if this is true? For individuals who are at least 65 years old (and not blind) the standard deduction will be $13,600. For married c...
by delamer
Mon Jan 15, 2018 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: pay off 401k loan or not?
Replies: 17
Views: 1144

Re: pay off 401k loan or not?

Thanks WoodSpinner. That seems like sounds advice, and I'm kind of leaning towards paying it off (for cashflow reasons) but being somewhat aggressive in paying off the HELOC. My job is stable - I've been at the same company for 23 years. But nobody can predict the future, and I would prefer to avoi...
by delamer
Mon Jan 15, 2018 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: pay off 401k loan or not?
Replies: 17
Views: 1144

Re: pay off 401k loan or not?

Why are you taking out the $75K HELOC? That seems more problematic than the 401(k) loan.
by delamer
Mon Jan 15, 2018 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice - Jumping in when the market is high
Replies: 24
Views: 1593

Re: Portfolio Advice - Jumping in when the market is high

First, I'd like to thank everyone - I've spent quite awhile reading through numerous posts and have learned a lot! I would now love other's perspectives on my portfolio. I'm kicking myself for not addressing this sooner and investing with fire until now. I started Roth IRAs for my wife and I severa...
by delamer
Mon Jan 15, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Mom (86) -Recommended Investments/Assett Allocation
Replies: 6
Views: 632

Re: Mom (86) -Recommended Investments/Assett Allocation

Does she need income from these assets, or to draw them down, to cover her expenses?

Is her concern having money to live on now or building an inheritance for heirs?
by delamer
Mon Jan 15, 2018 11:05 am
Forum: Personal Finance (Not Investing)
Topic: why emergency savings?
Replies: 42
Views: 3399

Re: why emergency savings?

If $20,000 is such a small portion of someone’s liquid assets, then why are they worried about losing a couple percentage points in interest by keeping it in a savings account?
by delamer
Sun Jan 14, 2018 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4227

Re: Budgeting Vs Savings Rate

OP, 1) I have a saving goal. I save X% of my gross income. Then, I spend the rest. 2) I tracked my expense via Quicken. I know where my money goes. But, I do not budget. I do not use that tracking to control my expenses. 3) After my "Pay Yourself First" savings, I debit the rest of my income into m...
by delamer
Sun Jan 14, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4227

Re: Budgeting Vs Savings Rate

I think budgeting is a personality thing, fine for some folks, not for others. The need for budgeting depends to some degree on one's native tendency to spend money just because it's there. If "shopping" is your idea of a fun recreational activity, then yeah, budgeting could be a good idea for your...
by delamer
Sun Jan 14, 2018 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4227

Re: Budgeting Vs Savings Rate

OP, 1) I have a saving goal. I save X% of my gross income. Then, I spend the rest. 2) I tracked my expense via Quicken. I know where my money goes. But, I do not budget. I do not use that tracking to control my expenses. 3) After my "Pay Yourself First" savings, I debit the rest of my income into m...
by delamer
Sun Jan 14, 2018 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Roll SGENX to Thrift Savings
Replies: 15
Views: 607

Re: Roll SGENX to Thrift Savings

Earl Lemongrab wrote:
Sun Jan 14, 2018 2:54 pm
delamer wrote:
Sun Jan 14, 2018 11:23 am
The load is the Expense Ratio (ER). In the fund documents, it will be expressed as a percentage such as 1.0%.
No, a load is a fee to buy or sell (depends on the fund) that serves in part as a commission to the account manager.
You are correct. I will delete my original response.
by delamer
Sun Jan 14, 2018 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4227

Re: Budgeting Vs Savings Rate

When someone says they “ spend way too much” to me that is another way of saying they aren’t meeting their savings goals and/or have too much debt. So I am curious as to what exactly your issue is. As I said, I max out all of my tax-advantaged accounts, but that ends up being only about 20% of our ...
by delamer
Sun Jan 14, 2018 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4227

Re: Budgeting Vs Savings Rate

We have saved on average probably 20% of gross. We track expenses in Quicken but have never really done a budget long term. ... I hate to say it but I haven’t had much luck in “selling” that to DW, and I’m not without fault myself. I’m probably going to take another swing at it soon because we need...
by delamer
Sun Jan 14, 2018 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Roll SGENX to Thrift Savings
Replies: 15
Views: 607

Re: Roll SGENX to Thrift Savings

Deleted (incorrect)
by delamer
Sat Jan 13, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: What information should my heirs have just in case
Replies: 12
Views: 608

Re: What information should my heirs have just in case

Assuming you are the one mainly responsible for your family finances, does your wife have all the information that she needs in case you predecease her? My dad had a binder with account lists (including shares, balances, phone numbers), pension and Social Security information, health insurance infor...
by delamer
Sat Jan 13, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 65
Views: 4227

Re: Budgeting Vs Savings Rate

Not meant to be a snarky remark, but for what purpose do you track your spending if not to act on the information that you gather?

And if you are acting on the information by reallocating money to different categories, then you are effectively budgeting already.
by delamer
Sat Jan 13, 2018 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: What information should my heirs have just in case
Replies: 12
Views: 608

Re: What information should my heirs have just in case

Financial institution, account number, name account is under, and type of account (example — Vanguard, #123, Mom, IRA). Also add information on any debt and life insurance. If you maintain financial records on a spreadsheet or software like Quicken, I’d make sure they know where to find those record...
by delamer
Fri Jan 12, 2018 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: How much/little money to give kids in will so they continue to work
Replies: 95
Views: 7903

Re: How much/little money to give kids in will so they continue to work

So if you had two children who got the same grades at the same college and went into the same profession, one took a job in North Dakota and bought a house, s/he gets more than another who goes to San Francisco and can't afford to buy? What if they buy something 3 times as expensive, do they get mo...
by delamer
Fri Jan 12, 2018 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?
Replies: 4
Views: 537

Re: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

No, you don't need to do anything. It is really not a worry at all. Not at all. My experience is with Vanguard though and not with Fidelity. My experience is the same, assuming that you are not talking about the value falling due to withdrawals of purchased shares but only due to a drop in share pr...
by delamer
Fri Jan 12, 2018 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: How much/little money to give kids in will so they continue to work
Replies: 95
Views: 7903

Re: How much/little money to give kids in will so they continue to work

What if your kids choose to be renters instead of homeowners? Or what if they decide to start their own businesses instead of going to college? Would you refuse to give money to them because their values differ somewhat then yours? Yes, we would refuse in most circumstances that I can foresee (unle...
by delamer
Fri Jan 12, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal vs Yield as Income
Replies: 41
Views: 2104

Re: 4% Withdrawal vs Yield as Income

As a long term investor who prefers to live off of dividends, I am not concerned what the market value of my portfolio is now or in a year or two. I care what it will be in 10 or 20 years when I might want to sell and spend. For now, my concern is whether the actual dollar amount of my dividend cas...