Search found 6355 matches

by delamer
Sun Dec 09, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Parents with Retirement
Replies: 36
Views: 4333

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: 15
Views: 1545

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: 38
Views: 2902

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: 2621

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: 402

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: 15
Views: 1545

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: 2621

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: 1353

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: 15
Views: 1545

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: 2621

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: 402

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: 269

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: 570

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: 1449

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: 2463

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: 2463

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: 1148

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: 1371

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: 2463

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: 3901

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: 1090

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: 1090

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: 1975

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: 3220

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: 3149

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: 3220

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: 32
Views: 4438

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: 842

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: 4171

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: 1829

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: 1556

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: 4096

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: 948

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: 4096

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: 4096

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: 4959

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: 9063

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: 4959

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: 4959

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: 3787

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: 322

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: 5039

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...
by delamer
Mon Dec 03, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Park large sum for limited time
Replies: 5
Views: 460

Re: Park large sum for limited time

We currently have money we need for a house downpayment in the settlement fund. I don’t know the answers to your questions, but will you really need all the money on very short notice? Surely a week’s notice would be enough time to get access? Given that you are talking about 6 months, have you figu...
by delamer
Sun Dec 02, 2018 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Changing asset allocation when saving for big expenses?
Replies: 10
Views: 973

Re: Changing asset allocation when saving for big expenses?

We have one asset allocation for retirement money.

We have separate asset allocations for money going toward other savings goals, like paying for college.

Does that help?
by delamer
Sun Dec 02, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Buying service years in pension
Replies: 18
Views: 1544

Re: Buying service years in pension

The other thing to look at is how much of your expected retirement expenses will be covered by current pension and Social Security benefits. If your current benefits will cover a high percentage of your expenses (say 70% or more), than the need to annuitize more income is low. If, however, your curr...
by delamer
Sun Dec 02, 2018 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Trying not to use the term timing, but...
Replies: 23
Views: 1842

Re: Trying not to use the term timing, but...

I seem to have an odd risk tolerance. I prefer to hold higher amounts of stocks versus bonds, however here I am asking for thoughts on making a pretty substantial eggs in one basket move. I don’t want to offend a new poster. But what you are describing just makes no sense, especially given that you...
by delamer
Sun Dec 02, 2018 11:50 am
Forum: Personal Consumer Issues
Topic: FIOS cost after initial deal ?
Replies: 7
Views: 663

Re: FIOS cost after initial deal ?

We’ve had FIOS for 5 years — internet, phone, TV.

We are paying $10 more per month in base price than with the initial 2-year contract.
by delamer
Sun Dec 02, 2018 11:36 am
Forum: Personal Consumer Issues
Topic: declining employer benefits?
Replies: 36
Views: 3952

Re: declining employer benefits?

Obamacare subjects a company to a $100/day/employee penalty for reimbursing an employee purchased healthcare plan. Starting in 2017 an exception was added that allows a company that does not offer a group health plan and has < 50 employees to offer a Qualified Small Employer Health Reimbursement Ar...
by delamer
Sun Dec 02, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: My mutual funds are declining, please help!
Replies: 54
Views: 5077

Re: My mutual funds are declining, please help!

people are afraid of crashes because it can potentially cause financial ruin even if you stay the course... 2000-2013 was flat inflation adjusted, that is 13 whole years with nothing to show for it while taking substantial capital risk. If one would've sinply put their money in a risk free CD they ...
by delamer
Sun Dec 02, 2018 10:50 am
Forum: Personal Consumer Issues
Topic: declining employer benefits?
Replies: 36
Views: 3952

Re: declining employer benefits?

Obamacare subjects a company to a $100/day/employee penalty for reimbursing an employee purchased healthcare plan. Starting in 2017 an exception was added that allows a company that does not offer a group health plan and has < 50 employees to offer a Qualified Small Employer Health Reimbursement Ar...