Search found 2375 matches

by ofcmetz
Mon Sep 02, 2019 2:07 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

This is a tough one for me to figure out. I don't like 70% funding levels, for me 90% and better make me sleep well. Your employer seems to be working towards better funding levels based on the contribution rates though. What rate do the funds in the drop program get credited with? If you drop and ...
by ofcmetz
Mon Sep 02, 2019 1:58 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

I get your point, but even if the pension got into trouble down the road, that wouldn't necessarily make the lump sum the best option. For instance, with a 4% discount rate, the net present value of $1k per month for 25 years would be $189,452, more than the lump sum. If you believe that you would ...
by ofcmetz
Mon Sep 02, 2019 1:49 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

Cop in Ohio here. I'd take the drop. I am in drop now. You get the immediate possession of cash that you control plus you have the pension. Pension benefits change and will continue to. Once you have the cash you have it. Health insurance will be one of the first things to go. Then Reduced payments...
by ofcmetz
Mon Sep 02, 2019 1:46 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

Though those look like private sector pensions (got cut off before I could read the whole article but it mentions the PBGC. Public pensions are riddled with problems, but their risks and protections will differ from private pensions, and those will also differ from state to state and according to w...
by ofcmetz
Sat Aug 31, 2019 3:15 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

The obvious answer is to go with the pension because it is too good to be true. That is the case with many state pensions in many states that are headed toward a financial cliff. I have friends in CA who are eligible for ridiculous pensions (which is why they took the bait). [OT comments removed by...
by ofcmetz
Sat Aug 31, 2019 3:12 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

I don't really understand the details of the options but one thing to double check on is if any other retirement benefits like health care are linked to which option you take. Strangely enough our retirement healthcare is linked to a separate vesting schedule that is based on how any years we have ...
by ofcmetz
Fri Aug 30, 2019 9:33 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

Will you get SS? If so, have you considered how the pension will affect your SS level and taxes? We don't participate in social security as state employees. If I do earn enough credits it will be offset significantly because I have a pension. My wife does participate and should get her full amount ...
by ofcmetz
Fri Aug 30, 2019 9:31 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

If you go into the DROP program do you have to definitely retire in three years? I think that would be another argument against doing the DROP. I assume if you aren't in the DROP program you could continue to work longer than three more years if desired. I know you think you definitely want to reti...
by ofcmetz
Fri Aug 30, 2019 9:27 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

I, too, would take the added pension benefit over the lump sum. As an aside, those numbers are astonishing to me. I've been in my current state pension system for 15 years now. I need to work a little more than 12 more years to reach full retirement age (65), at which I am projected to receive less...
by ofcmetz
Fri Aug 30, 2019 9:19 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

My only pause is the 70% funding but I am not knowledgeable enough to know what importance to give that. ^ This plus the no-COLA for 22! years and 75% survivorship also give me pause. This $1k/mo purchasing power could decay pretty dramatically under high inflation or with an early death. OP, do yo...
by ofcmetz
Fri Aug 30, 2019 9:14 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

On paper: pension not DROP for that amount of money. No brainer. That said: is your job dangerous? Physically demanding? Do you enjoy it? Hate it? It is both dangerous and physically demanding, but so are many other jobs. :D I'm a uniform patrol lieutenant at a 60 man department. I instruct in fire...
by ofcmetz
Fri Aug 30, 2019 9:12 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

Re: $1,000 a month or $180,000 Pension Question

I'm a bit confused by the three years of DROP, vs. the work for ten more years. Are you saying you do the DROP now? or as you final 3? Working for ten more puts you at 50 y/o.... assuming you live to 80 that would be 360 months @ $1K each extra.... +/- cola as applicable. Can you do the ten and the...
by ofcmetz
Fri Aug 30, 2019 7:00 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5869

$1,000 a month or $180,000 Pension Question

Hello Bogleheads, Him: 40 Her: 43 (wife) I just met with my retirement system and got exact numbers for this question. I posted a question similar without exact info last year so I apologize if its a little bit of a repeat. I've reached normal retirement eligibility and will draw a pension in my pol...
by ofcmetz
Mon Aug 05, 2019 9:48 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12340
Views: 2129597

Re: U.S. stocks in free fall

retiringwhen wrote:
Mon Aug 05, 2019 9:43 am
livesoft wrote:
Mon Aug 05, 2019 9:42 am
Hmm, does anybody think today might be an RBD for some things? :twisted:
It's a Monday....
But I'm off Monday/ Tuesdays, so it's kind of a Saturday for me.

I'm not living off my equity funds so I'm taking things in stride. Although, it's never fun to lose money.
by ofcmetz
Tue Jul 30, 2019 7:57 pm
Forum: Personal Investments
Topic: Retire with Less Than $1 million?
Replies: 101
Views: 21789

Re: Retire with Less Than $1 million?

RadAudit wrote:
Tue Jul 30, 2019 5:29 pm
ofcmetz wrote:
Sun Jul 28, 2019 10:15 am
about 40K a month in social security and is richer today than when he retired.
At that rate, I'm confident he is.

Someone from SS ought to be dropping by real soon. :wink:
Lol, typo there. Hahaha.

A year not a month.
by ofcmetz
Sun Jul 28, 2019 10:15 am
Forum: Personal Investments
Topic: Retire with Less Than $1 million?
Replies: 101
Views: 21789

Re: Retire with Less Than $1 million?

It all depends on your withdrawal rate (3-4%) and your annual expenses. A 3% withdrawal rate is conservative. It does look like you need to draw much 33k minus 30k ss How old are you? Do your anticipated retirement expenses (33k) include medical, state and local taxes? Will you have a pension? Have...
by ofcmetz
Sun Jul 28, 2019 10:10 am
Forum: Personal Investments
Topic: Total market fund vs. 1 each large/mid/small cap funds
Replies: 26
Views: 1894

Re: Total market fund vs. 1 each large/mid/small cap funds

I prefer to use total market funds whenever available. If they aren't you can use something like 80% S&P 500 and 20% small cap index to get a good approximate. There is no point in using the separate funds unless you are tilting.
by ofcmetz
Tue Jun 18, 2019 7:36 am
Forum: Investing - Theory, News & General
Topic: How safe are pensions in the U.S.?
Replies: 87
Views: 9917

Re: How safe are pensions in the U.S.?

I've been participating in a Louisiana state pension for over 20 years that has always been somewhat underfunded. Employee contributions are 9.5% and employer contributions are currently approximately 40% . The employer contribution level in insane in my opinion but it the key reason that the fundin...
by ofcmetz
Tue Jun 11, 2019 3:20 pm
Forum: Personal Investments
Topic: Total Bond Fund vs 2.65% Stable Value
Replies: 6
Views: 886

Re: Total Bond Fund vs 2.65% Stable Value

Things to think about, when does the stable value rate 2.65% reset to a different rate? How is the stable value insured? I have no problem with that but you are trying to time the interest rate market. iShares Total Bond Market fund (IUSB) is a good fund of the 30 day yield is 2.86%. I think you ar...
by ofcmetz
Tue Jun 11, 2019 3:19 pm
Forum: Personal Investments
Topic: Total Bond Fund vs 2.65% Stable Value
Replies: 6
Views: 886

Re: Total Bond Fund vs 2.65% Stable Value

Thanks for the posts. The Stable value rate changes quarterly. It's usually somewhere between no change an 5 basis points. Yeah, I realize this would be a little timing of the interest rates and we are talking in the low thousands of dollars at the most.
by ofcmetz
Tue Jun 11, 2019 12:47 pm
Forum: Personal Investments
Topic: Total Bond Fund vs 2.65% Stable Value
Replies: 6
Views: 886

Total Bond Fund vs 2.65% Stable Value

I invest my governmental 457B entirely in fixed income (low six figures in this account). For the last year or so I've had all that in the iShares Total Bond Market fund with around a 0.1% expense ratio. This year has been a good year for bonds as far as capital appreciation due to the big drop in y...
by ofcmetz
Sun Jun 02, 2019 8:17 am
Forum: Investing - Theory, News & General
Topic: Your favorite international stock mutual fund
Replies: 16
Views: 1673

Re: Your favorite international stock mutual fund

UpperNwGuy wrote:
Sun Jun 02, 2019 7:51 am
Vanguard Total International Stock Index Fund (VTIAX). It's the classic international fund for the three-fund portfolio.
^I use this one as well. All my international is in tax advantaged retirement accounts.
by ofcmetz
Sat Apr 27, 2019 11:35 am
Forum: Investing - Theory, News & General
Topic: Uber IPO
Replies: 38
Views: 3160

Re: Uber IPO

michaeljc70 wrote:
Sat Apr 27, 2019 10:39 am
I don't buy individual stocks anymore, but if I did, I wouldn't touch Uber.
Same here. It's an unprofitable speculation to say the least. Has anyone been watching what happened to Lyft?
by ofcmetz
Wed Apr 24, 2019 2:17 pm
Forum: Investing - Theory, News & General
Topic: Boglehead age adjusted asset plan?
Replies: 13
Views: 1564

Re: Boglehead age adjusted asset plan?

I prefer to look at each investors individual situation rather than following some fast rule. If your expenses are covered by pension or social security then maybe you could take more or less risk. How large is your portfolio vs your expenses? How have you fared during past market crashes? Are you p...
by ofcmetz
Wed Apr 24, 2019 2:11 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 1963
Views: 204694

Re: "S&P 500 Index closes at record high"

Many people in this thread seem to be equating "stay the course" with "buy and hold." Taylor himself sometimes seem to regard them as being the same, but at other times has explicitly stated that they are not the same thing. This revives an old discussion circa 2008/2009 when Taylor suggested that ...
by ofcmetz
Wed Apr 24, 2019 2:07 pm
Forum: Investing - Theory, News & General
Topic: Dividends v Buybacks, Boeing
Replies: 17
Views: 1836

Re: Dividends v Buybacks, Boeing

They are not going to be strangled by anything. They are a duopoly, and a prince of crony capitalism. No worries with this stock. Yeah, long term this will be just a blip on the radar. It is interesting how buybacks are more tax efficient, but get slashed first in almost all cases. Companies know t...
by ofcmetz
Wed Apr 24, 2019 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Spread Sheets [for retirement planning]
Replies: 15
Views: 1996

Re: Spread Sheets

What you are asking is basic formulas in Excel. Just start playing with Excel and quickly learn the formulas you want. Google whatever you want to accomplish and you will learn fast. And beyond formulas there is VBA. The sky is the limit with Excel but you really need get started and learn the basi...
by ofcmetz
Sun Feb 10, 2019 2:19 pm
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

I'm in college right now finishing my degree in finance at the only major (football powerhouse) university here. I will more than likely work at something in that field when I retire ... How about starting a personal website for the brave men and women in blue (BlueCoatInvesting.com or GunningforRe...
by ofcmetz
Sat Feb 09, 2019 6:20 pm
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

One figure that may indirectly impact the pension calculations is the employer contribution that's not seen, maybe up to another 9.5%. But that didn't account for the big difference in pension over 3 years (68,998/56,548 = 22% increase -- you can't afford not to keep working!). I'm guessing the low...
by ofcmetz
Sat Feb 09, 2019 10:33 am
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

The 69k is the pension in three years if you do not do DROP and, work the next three years or not work? The 58.5k pension is what you receive if you retire in 6 months and if you choose it could go into DROP for 3 years. Do you also pay into the SS retirement? That is correct. 58.5K if I retire in ...
by ofcmetz
Sat Feb 09, 2019 8:25 am
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

What are your plans beyond 3 years? Do you begin receiving the $69k pension in 3 years, even if you keep working elsewhere? Would you be financially restricted (benefits significantly curtailed) from working for the state? How many years of service do you have and when does the pension max out? Are...
by ofcmetz
Wed Feb 06, 2019 11:23 pm
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

I was an OT nut my whole career and you sound like you get your fair share. Some guys become dependent on it to pay the bills. I used it for the kids college funds and vacations. Try to wean yourself off it as you get closer to retirement. You can take the DROP as a lump sum when you retire right? ...
by ofcmetz
Wed Feb 06, 2019 8:41 pm
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

Anyway, lots of things to consider. I do know that I was able to handle the job much easier once I did reach my KMA date. I went two years longer. Probably would have gone longer if my DW hadn't retired from the Sheriff's Dept and was having a blast not going to work. I got jealous. I crunch me num...
by ofcmetz
Wed Feb 06, 2019 8:38 pm
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

Another retired Lt. here. Wow you guys get to retire young. We have to go to at least 50 but don't usually max out until 55. I'm in California. I worked for a PERS agency and DROP wasn't an option. What is the guaranteed interest rate after the 3 years? Any chance of a captain spot opening up for y...
by ofcmetz
Wed Feb 06, 2019 8:26 pm
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

What are the spousal benefits for each way and would that factor into your decision? I assume no inheritance benefits for kids either way - - -? The Spousal survival benefit is 75% of my benefit for her life if I was to expire before her. If both of us are gone kids would get that 75% until age 18....
by ofcmetz
Wed Feb 06, 2019 2:50 pm
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

Re: State Pension DROP decision

Does your pension have a COLA and if so how much? Cheers It does have a form of COLA but not until the age of 62 and even then it's based on the funding of the COLA account balance (a separate account maintained by the pension to pay for COLA's). So effectively, I'd be getting about 20 years of not...
by ofcmetz
Wed Feb 06, 2019 2:18 pm
Forum: Personal Investments
Topic: State Pension DROP decision
Replies: 19
Views: 2383

State Pension DROP decision

In 6 months, I'll reach a point in my pension at which time I'll have the option of participating in the Deferred Retirement Option Plan (DROP) or continuing along in the pension. If I do DROP, I'll lock my pension amount at that point in an amount equal to my annual pension amount will be deposited...
by ofcmetz
Wed Feb 06, 2019 1:53 pm
Forum: Personal Investments
Topic: Saving Enough? Too Much? Advice wanted.
Replies: 30
Views: 2892

Re: Saving Enough? Too Much? Advice wanted.

Looks like you got your side of things covered. Will your wife have enough saved to cover her side of things? If not that may mean you aren't saving enough because even though you separate finances, in an emergency or forced retirement the combined savings and combined bills are what really matters,...
by ofcmetz
Wed Feb 06, 2019 1:47 pm
Forum: Personal Investments
Topic: Roth IRA tax question.
Replies: 19
Views: 924

Re: Roth IRA tax question.

Never having to pay taxes on earnings in a Roth IRA is what makes it such a nice way to save. Also, I believe there are no minimum distributions at age 70.5 unlike traditional IRA's.
by ofcmetz
Sat Feb 02, 2019 1:24 am
Forum: Personal Investments
Topic: Bond Fund Dividend mistake?
Replies: 10
Views: 737

Re: Bond Fund Dividend mistake?

I always assumed buying a bond fund was pretty much the same as buying the underlying bonds. When you buy a bond you are also buying all accrued but unpaid interest. When you buy a bond fund the accrued interest is in the price, as is the premium or discount depending on the underlying bond yields....
by ofcmetz
Sat Feb 02, 2019 1:21 am
Forum: Personal Investments
Topic: Bond Fund Dividend mistake?
Replies: 10
Views: 737

Re: Bond Fund Dividend mistake?

I read the funds prospectus and couldn’t find the answer. The NAV doesn’t seem to drop on all the dividend dates either. Hmm Just compare what it did yesterday (a distribution date) to what other TBM type funds known to accrue daily, like Fidelity US Bond Index FXNAX or Vanguard TBM VBTLX, did. The...
by ofcmetz
Fri Feb 01, 2019 4:33 pm
Forum: Personal Investments
Topic: Bond Fund Dividend mistake?
Replies: 10
Views: 737

Re: Bond Fund Dividend mistake?

I read the funds prospectus and couldn’t find the answer. The NAV doesn’t seem to drop on all the dividend dates either. Hmm
by ofcmetz
Fri Feb 01, 2019 4:14 pm
Forum: Personal Investments
Topic: Bond Fund Dividend mistake?
Replies: 10
Views: 737

Re: Bond Fund Dividend mistake?

Not all bond funds do this: My understanding of bond mutual funds is that the dividends accrue daily to the shareholders and then are payed out either monthly or quarterly depending on the fund. So you have to look at the prospectus although the daily NAV can give a hint if it drops every month on ...
by ofcmetz
Fri Feb 01, 2019 4:07 pm
Forum: Personal Investments
Topic: Bond Fund Dividend mistake?
Replies: 10
Views: 737

Bond Fund Dividend mistake?

My understanding of bond mutual funds is that the dividends accrue daily to the shareholders and then are payed out either monthly or quarterly depending on the fund. This week I rearranged money between our many retirement accounts and in the process purchased and additional $60,000 worth of iShare...
by ofcmetz
Thu Jan 17, 2019 1:45 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 57641

Re: John Bogle has died at age 89

He will be missed. I read so much of his writing that I felt like a really knew him as a friend. He made such a difference in our lives financially. RIP
by ofcmetz
Thu Jan 10, 2019 5:26 pm
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 241
Views: 23414

Re: What is your allocation to U.S. and International?

Percentage of portfolio in US 40%. International is 30% and other 30% is fixed income. I'm 39 and DW is 42
by ofcmetz
Wed Jan 09, 2019 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Too many credit cards?
Replies: 54
Views: 3435

Re: Too many credit cards?

I don't like credit cards that much and I am lazy with them. I just use a 2% card with everything and have only one bill to pay a month. I might not make the most money but it is so easy. I don't like keeping up with them as well either but I have 2 which is a lot for me. :D I use my 2% Fidelity Ca...
by ofcmetz
Mon Dec 31, 2018 12:08 am
Forum: Investing - Theory, News & General
Topic: International Funds Still Relevant in a Simple Portfolio?
Replies: 74
Views: 5834

Re: International Funds Still Relevant in a Simple Portfolio?

Don't change your allocation based on recent performance. International may or not be a better investment than US stocks, but their PE's are certainly lower so you at least get more earnings for your buck. If you have an allocation, then stick with it unless your reasons for that allocation have cha...
by ofcmetz
Thu Dec 27, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: What was your best investment in 2018?
Replies: 127
Views: 8219

Re: What was your best investment in 2018?

BogleMelon wrote:
Sun Dec 23, 2018 9:43 pm
$1860 (late 2017 and 2018) was spent for me and my wife to become US citizens and get our US passports. Best money spent ever! :sharebeer
That's awesome! Congrats.

I was already a citizen but did get my first ever passport this year and have used it several times already. :sharebeer