Search found 2637 matches

by SGM
Tue Jul 17, 2018 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Hump vs. Tax Torpedo
Replies: 21
Views: 2248

Re: Social Security Tax Hump vs. Tax Torpedo

No SS tax hump for me as I will always have 85% of it taxed. The big tax change I was concerned about was RMDs at 70 1/2. I-orp agreed with what I was already planning which was a complete conversion of all tax deferred accounts over several years after retiring or working a few hours a week. ACA ta...
by SGM
Mon Jul 16, 2018 8:25 am
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 103
Views: 5448

Re: A different take on retirement income: time segmentation

TIAA-CREF annuity payout has risen considerably over the last several years. It is mostly in CREF. Expenses are very low to the insurance company because as an annuitant we take the risk of mortality credits. Apparently our cohort has been disappearing. The payout could go up or down, but I expect i...
by SGM
Mon Jul 16, 2018 4:29 am
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 103
Views: 5448

Re: A different take on retirement income: time segmentation

I don't divide my portfolio between essential vs. discretionary spending. Our essential spending is covered by various income streams. The portfolio dividends make up a part of the total spending. I do have a hierarchy of spending and at the top regular deposits that come in from rental income, annu...
by SGM
Sun Jul 15, 2018 8:56 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 139
Views: 8667

Re: Why is leveraging property good but leveraging stocks bad?

A house mortgage had the advantage in that the interest was tax deductible. I don't know if interest paid for buying on margin was or is deductible. Another advantage of a mortgage is that you have to pay to rent anyway. For many years I had a very high stock allocation. Most BHs would find this rec...
by SGM
Sat Jul 14, 2018 4:11 am
Forum: Investing - Theory, News & General
Topic: COMING SOON: BOGLEHEADS PODCASTS
Replies: 341
Views: 10259

Re: COMING SOON: BOGLEHEADS PODCASTS

Bogleheads Cents and Sensibility - might get women more interested in investing. Bogleheads Gents and Sensibility? Victoria I had been advised not to bother with a suggestion because the very amusing Victoria was going to win anyway. :( An acquaintance suggested Make Bogleheads Great Again, but Bog...
by SGM
Fri Jul 13, 2018 6:36 pm
Forum: Investing - Theory, News & General
Topic: COMING SOON: BOGLEHEADS PODCASTS
Replies: 341
Views: 10259

Re: COMING SOON: BOGLEHEADS PODCASTS

Bogleheads-up Investing

Bogleheads Cents and Sensibility - might get women more interested in investing.

Bogleheads Sense and Cents-ibility

Building Wealth with Bogleheads
by SGM
Fri Jul 13, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Old Drip Accounts - Worth Moving to Consolidate?
Replies: 9
Views: 600

Re: Old Drip Accounts - Worth Moving to Consolidate?

I moved old drip accounts to a brokerage firm 8 years ago. Computershare charged for transfers. I think at the time it was less costly to get certificates and then use my local bank for a signature guarantee to for transfer of the certificates to a brokerage account. I am not sure if you can get a c...
by SGM
Wed Jul 11, 2018 3:38 am
Forum: Personal Finance (Not Investing)
Topic: PenFed or Navy Federal?
Replies: 30
Views: 2092

Re: PenFed or Navy Federal?

I set up a joint checking account with an elderly parent at NFCU. The service was great and I could do a lot via the website. ACH transfers from investment accounts were easy. NFCU employees were very helpful and respectful towards my WWII veteran parent. One suggested we could havechecks printed el...
by SGM
Tue Jul 10, 2018 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: Any Dry Powder Strategies?
Replies: 103
Views: 5766

Re: Any Dry Powder Strategies?

I am not against using buckets or some other mental accounting to avoid making sudden decisions that go against my plan. A bucket for before FRA and another for after FRA and then a dry powder bucket seems a little complex. I think it is okay to use such techniques as long as you aware of that it ma...
by SGM
Sat Jul 07, 2018 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Ratings of free online retirement income calculators
Replies: 8
Views: 969

Re: Ratings of free online retirement income calculators

Thank you BobK for your posts. I have tried most of these online calculators 8 years ago when I was contemplating retirement. I also used I-orp and downloaded a spreadsheet supplied by another BH. I have been reasonably pleased with the calculators. Now planning is mostly confined to a few spreadshe...
by SGM
Sat Jul 07, 2018 4:17 am
Forum: Personal Consumer Issues
Topic: How to tip
Replies: 87
Views: 5295

Re: How to tip

When I was younger I followed the rule of 15% of the pre tax bill. Currently I tip 25% of the post tax bill. One restaurant we go to requires an 18% tip on the post tax bill. We only go there for folk concerts every few months. I have to remind our friends that the tip is already included. I won't g...
by SGM
Fri Jul 06, 2018 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation once you reach your target
Replies: 42
Views: 3001

Re: Asset Allocation once you reach your target

When I was accumulating I was 100% in stocks until a few years before retirement. Slowly I have decreased to about 70/30 stock to bond. All our needs are met by outside sources of income including farm rental income, small pension, TIAA-CREF annuity from a 403b, and some of our dividends from taxabl...
by SGM
Thu Jul 05, 2018 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: AARP: 10 Commandments [of Money, by Allan Roth]
Replies: 19
Views: 2691

Re: AARP: 10 Commandments [of Money, by Allan Roth]

Here's a previous article by Allan Roth on the same subject. Good for him - I admire his candor. https://www.aarp.org/money/investing/info-03-2012/two-sides-of-financial-planner.html This is a much better article than the ten commandments article. In the earlier article Allan Roth exposes some of t...
by SGM
Thu Jul 05, 2018 3:47 am
Forum: Investing - Theory, News & General
Topic: The Power of Working Longer
Replies: 185
Views: 18664

Re: The Power of Working Longer

Conversations concerning working longer seem to come up more frequently. A friend has agreed to work another 3 years at a 35 hour a week job. He could retire now, but he has been offered additional pay which will increase his pension by another $20k yearly. Other conditions will make his job more pl...
by SGM
Wed Jul 04, 2018 3:17 am
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 11025

Re: SS taken at 62 vs. 70, but measured from 70+

Decision has already been made by us to use the delay until 70 strategy. I only compared SS delay to a 10 year treasury bond return initially. Eventually I ignored the analysis altogether as I valued the insurance aspect a higher SS stream. We also used the time before taking SS to convert tradition...
by SGM
Tue Jul 03, 2018 2:49 pm
Forum: Personal Consumer Issues
Topic: Rodents ate my car!
Replies: 61
Views: 5375

Re: Rodents ate my car!

An alarm signaled a problem with the exhaust system. A local mechanic misdiagnosed the problem as to do with some sort of sensor. It was the most expensive fix and I suspected it was out of this mechanic's area of expertise. I went to Track Auto and they checked the computer system for free. I wrote...
by SGM
Mon Jul 02, 2018 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Do you own just 5% of anything?
Replies: 65
Views: 4684

Re: Do you own just 5% of anything?

Yes. I still have small percentages of individual stock with large capital gains that I have been nibbling away at for the last 10 years or so. Most of my portfolio is in index funds, but now those are racking up big capital gains too. I don't think it is that bad a problem to have. This year I have...
by SGM
Mon Jul 02, 2018 1:12 pm
Forum: Investing - Theory, News & General
Topic: "homemade dividends" from Total Stock Market fund
Replies: 135
Views: 8639

Re: "homemade dividends" from Total Stock Market fund

I don't find the term homemade dividends to be confusing, but I understand how some people could object to it. Meir Statman uses the term in Finance for Normal People when he discusses the "dividend puzzle". This is a good book to read concerning psychological errors and investor wants for utilitari...
by SGM
Mon Jul 02, 2018 4:36 am
Forum: Investing - Theory, News & General
Topic: Do Advisers Add $$$ Value?
Replies: 71
Views: 5437

Re: Do Advisers Add $$$ Value?

An individual who acts irrationally most of the time has an advisor who is also essentially a "life-coach". This advisor works very hard and is conflicted about certain actions the client has proposed. The advisor works for a bank and is also an attorney. Other bank attorneys have been involved and ...
by SGM
Sun Jul 01, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: Do Advisers Add $$$ Value?
Replies: 71
Views: 5437

Re: Do Advisers Add $$$ Value?

I have had casual conversations with a number of financial advisors and I am convinced that most of them know less about investing than experienced BHs. Some comments by these advisors were wrong, selfish or uninformed. One told me that Roth conversions would only help heirs. He also insisted that d...
by SGM
Sat Jun 30, 2018 9:58 am
Forum: Investing - Theory, News & General
Topic: Keep calm and Boglehead on!
Replies: 60
Views: 5712

Re: Keep calm and Boglehead on!

I have a bit more anxiety because my human capital is at a low. When my human capital was high there was little anxiety. I know a ton of coping behaviors for anxiety including diversification of income and assets. I don't pay attention to the doom-sayers. Fortunately, I learned to prepare for retire...
by SGM
Sat Jun 30, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Does It Make Sense to Wait to Claim SocSec?
Replies: 62
Views: 6759

Re: Does It Make Sense to Wait to Claim SocSec?

I will be celebrating my 70th birthday soon with two long-time friends who are also turning 70 in the same month. Each of us were the higher earners and delayed our SS until 70 so that the widow's benefit would be as high as possible. We all looked at SS delay as insurance against longevity. I used ...
by SGM
Fri Jun 29, 2018 4:23 am
Forum: Investing - Theory, News & General
Topic: "homemade dividends" from Total Stock Market fund
Replies: 135
Views: 8639

Re: "homemade dividends" from Total Stock Market fund

Company dividends and homemade dividends differ in form but not in substance. In taxable accounts the taxes on a homemade dividend is less than on a company paid dividend. If you have capital gains you only pay tax on part of your withdrawal. So homemade dividends are more tax efficient in a taxable...
by SGM
Thu Jun 28, 2018 7:49 am
Forum: Investing - Theory, News & General
Topic: Financial Newspapers & Publications
Replies: 36
Views: 2634

Re: Financial Newspapers & Publications

I often receive a day old unread copy of the WSJ from a buddy who gets it at work. No one knows the person who ordered the subscription originally and my buddy has no interest in it. At the library I occasionally look at the Kiplinger Retirement Report, Forbes, Barrons and the NY Times. Besides BHs ...
by SGM
Thu Jun 28, 2018 4:28 am
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 9719

Re: Stocks vs. rental property

Farm rental, hunt leases and cell tower income require next to nothing in effort. Residential real estate is more problematic especially in our over-regulated county. The stock market has been good to us. We no longer get weekly calls from developers offering to buy our farm since the 2008 debacle. ...
by SGM
Wed Jun 27, 2018 3:32 pm
Forum: Investing - Theory, News & General
Topic: Are we just way over complicating this?
Replies: 113
Views: 7160

Re: Are we just way over complicating this?

The more posts I read, including my own, them more convinced I am that either we are inventing scenarios to worry about or just discussing things for sport. In fact, it seems to me the wisest person in the kingdom might be someone who just opens a Vanguard account with one fund the Balanced Index f...
by SGM
Wed Jun 27, 2018 8:04 am
Forum: Investing - Theory, News & General
Topic: GE and the myth of "safe blue-chip stocks"
Replies: 140
Views: 20638

Re: GE and the myth of "safe blue-chip stocks"

One can construct a portfolio with dividend paying stocks despite the occasional suspension of dividends and bankruptcies. Retirees tend to prefer dividends more so than younger investors for reasons I won't get into now. I am stuck with a few dividend paying stocks that I have owned for many years....
by SGM
Wed Jun 27, 2018 4:16 am
Forum: Investing - Help with Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 58
Views: 5014

Re: How much of your taxable holdings is unrealized capital gains?

I tried lowering my taxable account by converting all tax deferred accounts to Roth accounts over a 5 year period. However, our taxable accounts continue to grow. I still have huge capital gains in stocks and now in some index funds. Large capital gains and ongoing dividend taxation is the cost of b...
by SGM
Tue Jun 26, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: 60/40 or 40/60?
Replies: 42
Views: 4555

Re: 60/40 or 40/60?

The history of market timing is not encouraging. It is a difficult to foresee market trends. Hindsight is 20/20. You might have some regret if the market goes against whatever choice you make. How did you react during the 2008 downturn? What would you cope if the market had a large correction now th...
by SGM
Tue Jun 26, 2018 10:08 am
Forum: Personal Consumer Issues
Topic: Thinking about 2019 trip to Dubrovnik, Croatia
Replies: 19
Views: 1365

Re: Thinking about 2019 trip to Dubrovnik, Croatia

The island of Sveti Stefan is south of Dubrovnik. It has a restaurant with a large outdoor patio with a beautiful view overlooking the Adriatic. Beach is quite pretty and the cottages are very attractive.
by SGM
Tue Jun 26, 2018 9:24 am
Forum: Investing - Theory, News & General
Topic: How does a guaranteed income stream affect stock/bond ratio?
Replies: 21
Views: 2037

Re: How does a guaranteed income stream affect stock/bond ratio?

Many are in the situation where various income streams cover more than their needs and do not accumulate a large portfolio solely for the idea of spending it all in retirement. Some have other goals and perceived benefits of having a large portfolio and will never have an AA of age in bonds. If one ...
by SGM
Mon Jun 25, 2018 12:53 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35716

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Four years retired here: I do know that by not having conversions to make at 70 1/2 I will be in a lower marginal bracket than if I had not converted. I also know that my Roth account and taxable account are much larger than the were during the last year I made Roth conversions. So despite the lower...
by SGM
Wed Jun 20, 2018 9:48 am
Forum: Personal Finance (Not Investing)
Topic: "Open Social Security" calculator: feature requests, bug reports, etc
Replies: 96
Views: 9096

Re: "Open Social Security" calculator: feature requests, bug reports, etc

I no longer have a need for a SS calculator because I have recently applied for my delayed to age 70 payments. Since I am interested in the monthly and yearly income SS throws off along with my other income streams those numbers were most valuable to me in planning when I retired 4 years ago. I have...
by SGM
Wed Jun 20, 2018 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Value of a Military Retirement
Replies: 30
Views: 3455

Re: Value of a Military Retirement

14 states of the 41 that tax income do not tax military pensions.
by SGM
Mon Jun 18, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 456
Views: 102146

Re: Anyone regret paying off mortgage early?

No regrets paying off my mortgage early. When mortgage rates were 8% years ago, I considered my mortgage to be a yoke. Earlier I had a mortgage that was bought down from 13% for a few years by the builder. I have since paid cash for any large purchases and never carried a credit card balance. The fe...
by SGM
Mon Jun 18, 2018 3:53 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 152
Views: 11892

Re: Which boglehead rule do you break--and are ok with

We still hold a significant amount of individual stocks with capital gains, but the total has been decreasing as new money was generally put into index funds over the last 10 years. I like low cost index funds for the simplification and tax efficiency. I do not believe the market is completely effic...
by SGM
Sat Jun 16, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Job in MA, live in MA, RI, or CT?
Replies: 67
Views: 2923

Re: Job in MA, live in MA, RI, or CT?

We enjoy the CT shoreline in the summer and have some beach property there. I wouldn't become a resident because of the income tax situation.
by SGM
Thu Jun 14, 2018 4:00 am
Forum: Investing - Help with Personal Investments
Topic: [Looking for ways to reduce taxes and keep more of my income]
Replies: 91
Views: 8938

Re: [Looking for ways to reduce taxes and keep more of my income]

Judge Learned Hand expanded upon an often quoted earlier statement he made in a Supreme Court case, " Over and over again courts have said that there is nothing sinister in so arranging one's affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody o...
by SGM
Wed Jun 13, 2018 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Are you including SS in your planning model? Are the benefits really that high?
Replies: 148
Views: 11662

Re: Are you including SS in your planning model? Are the benefits really that high?

I don't understand why some people think SS payout is too little to be concerned with. We will get $60k at age 70 for the two of us. I would need $1.5 MM to have a 4% withdrawal rate of $60k. If I were to buy a SPIA it would cost somewhat less to generate a $60k income stream. Even with a large port...
by SGM
Wed Jun 13, 2018 3:59 am
Forum: Investing - Help with Personal Investments
Topic: Interesting Social Security analysis
Replies: 16
Views: 2350

Re: Interesting Social Security analysis

Some of these calculators must assume that you are getting good portfolio returns while delaying SS. I would only compare delaying SS while assuming the additional amounts available for investments by claiming early would be saved in 10 year treasuries which have rather low returns. Of course I gave...
by SGM
Mon Jun 11, 2018 4:04 am
Forum: Personal Finance (Not Investing)
Topic: ~1 year from FIRE - Tax diversification strategy?
Replies: 25
Views: 3123

Re: ~1 year from FIRE - Tax diversification strategy?

I would consider converting up to the 24% tax bracket. Higher state taxes in 6 years will likely more than make up for the 2% difference in marginal rates of the 22% bracket and allow for a lot more conversions each year over your 6 year time frame. State and local income taxes can be significant. I...
by SGM
Sun Jun 10, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Why do we work?
Replies: 121
Views: 10551

Re: Why do we work?

Initially I worked to be able to move out on my own. I found a series of interesting and challenging types of work. One of my first jobs gave me a lot of freedom and was the first program of its type in the state. My second and third careers were exciting and lucrative. I had national and internatio...
by SGM
Sat Jun 09, 2018 8:45 pm
Forum: Investing - Theory, News & General
Topic: When I thought I was smarter than the market
Replies: 22
Views: 3757

Re: When I thought I was smarter than the market

The only thing surprising is folks inability to accept how they can make a play on stocks when ALL the information they are reviewing is the same that every other person has access to in the first place. Well, I sort of disagree. I do agree that basically all the fundamental information should be g...
by SGM
Sat Jun 09, 2018 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Are you including SS in your planning model? Are the benefits really that high?
Replies: 148
Views: 11662

Re: Are you including SS in your planning model? Are the benefits really that high?

I did not consider SS in my planning until a few years before retirement. We will shortly be receiving about $60k per year and it will cover all necessary spending for quite a few years. My Dad's SS and pension covered all of his expenses and then some up until his 90s. His home was long paid for an...
by SGM
Wed Jun 06, 2018 4:12 pm
Forum: Investing - Theory, News & General
Topic: Don’t cheat yourself with the 4% rule
Replies: 159
Views: 18365

Re: Don’t cheat yourself with the 4% rule

A safe withdrawal rate is an important concept. The actual approach to withdrawals is open to argument. Any size portfolio can be lost by mismanagement. I don't use the 4% rule. As a retired couple we are planning for 40 years of retirement because of longevity and health factors. The concept of che...
by SGM
Wed Jun 06, 2018 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Can a Retired 60 yo MD, MBA Start a Law Career?
Replies: 276
Views: 13980

Re: Can a Retired 60 yo MD, MBA Start a Law Career?

I had 3 distinct careers and there were many naysayers along the way. Go to law school and ignore those who would discourage you. I would apply and not tell anyone until you were accepted and ready to start. We recently visited Smith College to deliver a large donation for scholarships. We learned t...
by SGM
Wed Jun 06, 2018 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Can a Retired 60 yo MD, MBA Start a Law Career?
Replies: 276
Views: 13980

Re: Can a Retired 60 yo MD, MBA Start a Law Career?

I had 3 distinct careers and there were many naysayers. By the time I decided to go to med school in my early 40s I knew enough not to ask for advice. I didn't tell anyone I was applying except for those writing recommendations until I was accepted. I even had people who told me at age 20 I couldn't...
by SGM
Tue Jun 05, 2018 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Annuitizing a deferred / variable annuity?
Replies: 41
Views: 2097

Re: Annuitizing a deferred / variable annuity?

Years ago I received good advice from Vanguard when I considered getting a variable annuity to increase my tax deferred space. The advice was that I would only be adding expenses with no real advantage. The only variable annuity we have is through former employment that offered TIAA-CREF funds. The ...
by SGM
Tue Jun 05, 2018 4:33 am
Forum: Investing - Help with Personal Investments
Topic: Annuity with survivor or not
Replies: 13
Views: 1173

Re: Annuity with survivor or not

I expect my spouse will live longer than I will so I advised her to take her annuity without a survivor benefit. I don't need the benefit. For my own pension I chose a 100% survival benefit. It works for my personal goals.
by SGM
Sun Jun 03, 2018 3:08 am
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 139
Views: 38230

Re: Master thread for Washington DC Area Bogleheads

Hi BobK. Here is a question I would like to see discussed at the meeting. What are good options to keep cash for a projected expense in 18 months given possible increases in interest rates and a preference for municipal bond funds?