Search found 2694 matches

by SGM
Mon Sep 24, 2018 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: 1041 question for estate tax
Replies: 3
Views: 294

Re: 1041 question for estate tax

Thanks Gill for your comments. Fortunately, I just heard from our accountant who has done a 1041 for another relative 15 years ago. He will meet us this weekend and work on the 1041.
by SGM
Mon Sep 24, 2018 10:07 am
Forum: Personal Finance (Not Investing)
Topic: 1041 question for estate tax
Replies: 3
Views: 294

1041 question for estate tax

These questions may sound stupid, but I have only yesterday been asked to help with estate tax forms, for an estate that I am not involved with. So bear with me. If there are any BHs or accountants out there I appreciate any help until I can get an accountant involved. I have been looking over a 104...
by SGM
Sun Sep 23, 2018 2:55 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security Until 70
Replies: 115
Views: 8958

Re: Delaying Social Security Until 70

I put money into a 7 year USAA savings annuity that paid initially 4% tax deferred starting 10 years before I took delayed SS at 70 while retiring at age 66. It currently pays 3.2% tax deferred. In the last 3 years of delaying SS I could have withdrawn any amount without penalty. After the first yea...
by SGM
Fri Sep 21, 2018 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 136
Views: 7791

Re: Physical Banking - Any benefits anymore?

We use the medallion guarantee and notary quite often. The safety deposit box has been helpful. Attorneys at the bank have given us some free help regarding settling estates and estate taxes. The bank had a very inexpensive and easy to use business account I used prior to retirement. We do get occas...
by SGM
Fri Sep 21, 2018 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security Until 70
Replies: 115
Views: 8958

Re: Delaying Social Security Until 70

A friend of mine reported that a SS agent tried to convince her to take a check for 6 months and receive a 69 1/2 year benefit instead of a 70 year benefit. She had to argue with him to get her full delayed 70 year benefit. I submitted the following statement in the comment section with my applicati...
by SGM
Thu Sep 20, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security Until 70
Replies: 115
Views: 8958

Re: Delaying Social Security Until 70

Smitcat and 2015 thanks for your positive response to my reasons for delaying SS. It is comforting to read that other BHs are thinking along the same lines. I don't think others who are taking SS early are wrong. I just wanted to list my personal priorities.
by SGM
Wed Sep 19, 2018 5:39 pm
Forum: Investing - Theory, News & General
Topic: Convince a friend to go Boglehead
Replies: 17
Views: 995

Re: Convince a friend to go Boglehead

Yes. I convinced a friend to increase their $1k in the Vanguard S&P 500 fund to $10k. They had been paying penalties for getting paper statements and for not increasing the $1k to the $3k minimum. I also told them about the file and suspend and restricted benefit which they were unaware of. This all...
by SGM
Wed Sep 19, 2018 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security Until 70
Replies: 115
Views: 8958

Re: Delaying Social Security Until 70

I just received my first SS deposit at age 70. I filed and suspended so that DW could take a spousal benefit at her FRA. Her own benefit will grow until she takes it at 70. We had several reasons to delay: 1. Family history of extreme longevity. Good health. 2. We could afford to delay. 3. We did co...
by SGM
Tue Sep 18, 2018 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Advisor suggesting 7 Bond funds for my 40%
Replies: 44
Views: 5187

Re: Vanguard Advisor suggesting 7 Bond funds for my 40%

I spoke with a Vanguard advisor who suggested Limited Term, Long Term and Intermediate Term muni bond funds. He advised specifically against Short Term muni bond fund as Limited Term had a higher yield and similar risk.
by SGM
Mon Sep 17, 2018 7:52 am
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 146
Views: 42058

Re: Master thread for Washington DC Area Bogleheads

Have there been any discussions of the impact of the tax law changes? I would take you all out to dinner but my first delayed SS payment doesn't come until next week. :wink: SGM, I am so sorry about your financial hardship. May I buy you a dinner tomorrow? Victoria Thank you Victoria. No hardship h...
by SGM
Sat Sep 15, 2018 10:28 am
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 146
Views: 42058

Re: Master thread for Washington DC Area Bogleheads

Have there been any discussions of the impact of the tax law changes? I would take you all out to dinner but my first delayed SS payment doesn't come until next week. :wink:
by SGM
Fri Sep 14, 2018 2:54 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversions when we will be in 22% bracket for indefinite future
Replies: 16
Views: 1811

Re: Roth conversions when we will be in 22% bracket for indefinite future

We converted over several years since 2010 when conversion was allowed regardless of income. Income taxes were paid out of a taxable account. Soon we will reach the age where we would have needed to make RMDs from tax deferred accounts if we hadn't converted all of it. We have already reaped a small...
by SGM
Wed Sep 12, 2018 8:29 am
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7413

Re: Argument for taking social security before 70. Comments?

I delayed SS until 70 for several reasons. DW has excellent health and both her parents lived to be over 102. We used the time with slightly lower income to convert to Roth accounts. I liked the idea of trading some of my taxable portfolio for higher income payments on a regular basis. I like separa...
by SGM
Fri Sep 07, 2018 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Using your home as old age care self-insurance?
Replies: 74
Views: 5697

Re: Using your home as old age care self-insurance?

We sold our Dad's house when he was 92 when he had to move into an assisted living. He needed about $1.5k a month beyond his pension and SS to pay for his medical insurance and other living costs. His house proceeds would have easily covered his expenses for the another 10 years or more if his cost ...
by SGM
Fri Sep 07, 2018 2:52 am
Forum: Investing - Theory, News & General
Topic: Taylor's new book is #1
Replies: 32
Views: 5880

Re: Taylor's new book is #1

I ordered two copies. One grown child has received a copy to read before going to the national conference in Philadelphia for the first time this October.
by SGM
Thu Sep 06, 2018 8:18 am
Forum: Investing - Theory, News & General
Topic: Stocks in a 401k is a bad idea, right?
Replies: 43
Views: 5535

Re: Stocks in a 401k is a bad idea, right?

We put only stock or stock funds in 401ks. Regardless of valuations we continued to invest with every paycheck. After cutting back work to 9 hours a week, we began converting to Roth accounts. We will have no RMDs. Just prior to complete retirement we began adding bond funds.
by SGM
Thu Sep 06, 2018 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Purchasing annuity for wife
Replies: 21
Views: 2152

Re: Purchasing annuity for wife

I will be buying a ladder of SPIAs form my wife starting after she reaches age 70 . She has little interest in monitoring a portfolio. The payouts will be directly deposited into her checking account. We have also discussed using a Vanguard advisor. Hopefully our grown children will be able to help ...
by SGM
Mon Sep 03, 2018 3:31 am
Forum: Investing - Help with Personal Investments
Topic: Evaluate Vanguard's Proposed Plan for my portfolio
Replies: 22
Views: 2198

Re: Evaluate Vanguard's Proposed Plan for my portfolio

I spoke with a senior Vanguard advisor last week and he suggested the same three muni bond funds for our taxable accounts. I emphasized that our tax rate was high and we already had reached our self imposed limit on long term capital gains for 2018. My question concerned the best muni bond funds in ...
by SGM
Sat Sep 01, 2018 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Anyone investing in Municipal bonds ?
Replies: 46
Views: 3152

Re: Anyone investing in Municipal bonds ?

My taxable account has 3 Vanguard muni bond funds. More is in intermediate term. Some is in limited term and some in long term muni funds. I recently had a discussion with a senior advisor at Vanguard who agreed with this allocation. I have no intention of selling any of these bond funds anytime soo...
by SGM
Thu Aug 30, 2018 12:12 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 285
Views: 27646

Re: U.S. stocks continue to soar!

I never rebalanced and was essentially 100% stock during accumulation. Four years after full retirement I am about 70/30 stock to bond. I have been adding bond funds slowly. I don't have a need to take risk. I currently have a hodge-podge of muni bond funds, total bond market funds, Vanguard ETFs, a...
by SGM
Wed Aug 29, 2018 11:06 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 285
Views: 27646

Re: U.S. stocks continue to soar!

My buddy Skysoldier was number 1 at 10 AM in his prediction of the S&P. He is torn between wanting to win the contest and have bragging rights or wanting me to be right with my high prediction. He has come down on the side of his portfolio and he wants my high prediction to be acciurate. I will buy ...
by SGM
Tue Aug 28, 2018 2:51 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 285
Views: 27646

Re: U.S. stocks continue to soar!

When asked what will happen to the market I am reminded of J.P. Morgan's intelligent answer to the same question. "It will fluctuate".

BHs are good for some laughs now and then. :D
by SGM
Sun Aug 26, 2018 10:35 am
Forum: Personal Finance (Not Investing)
Topic: How do you calculate net worth with pensions?
Replies: 105
Views: 6650

Re: How do you calculate net worth with pensions?

When choosing when and how to take my pension I looked at immediateannuities.com to determine what the equivalent annuity would cost. When a TIAA-CREF account was annuitized it no longer showed up as an asset on their website, but we started to receive a direct deposit monthly. I treat all annuities...
by SGM
Sat Aug 25, 2018 4:20 am
Forum: Investing - Help with Personal Investments
Topic: Investing monthly Social Security payments
Replies: 33
Views: 2970

Re: Investing monthly Social Security payments

I calculated a break even point of about 82 for delay from 66 to 70. However, I ignored the calculation because I valued the longevity insurance of delaying my SS until 70 as I was the higher earner. We were fortunate to be able to do the file and suspend and spousal benefit before the 2016 rules ch...
by SGM
Thu Aug 23, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 52
Views: 6002

Re: What to do at 62?

Since doing a Roth conversion while paying the taxes out of a taxable account is a complete wash in terms of buying power at the time of conversion I believe the use of the present value function leads to the wrong conclusion. There is no doubt in my mind that paying taxes at the 12% rate from 62-69...
by SGM
Thu Aug 23, 2018 8:25 am
Forum: Personal Consumer Issues
Topic: Test your cognitive biases
Replies: 89
Views: 5359

Re: Test your cognitive biases

The two examples given in the original referenced blog concerning medical/dental issues are good examples of the importance pre-test probability. The book Studying a Study, Testing a Test by RKRiegelman should be required reading before a physician orders a test or reads about new research. Apparent...
by SGM
Wed Aug 22, 2018 7:58 am
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 52
Views: 6002

Re: What to do at 62?

So you know your break even age. So what? You don't know how long you are going to live. If you are married there is a good chance at least one of you is going to live past the break even age. There was a study published in 2001... Do married men claim early out of ignorance or caddism? I looked at ...
by SGM
Mon Aug 20, 2018 9:36 am
Forum: Personal Consumer Issues
Topic: As an American, where are some great places in the world to retire?
Replies: 151
Views: 14725

Re: As an American, where are some great places in the world to retire?

Bolinas, California where it is always a sunny day in 1973.
by SGM
Mon Aug 20, 2018 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Recently Retired – Request Help to Simplify Portfolio, Advice on Roth Conversions, and Taking SS
Replies: 15
Views: 1732

Re: Recently Retired – Request Help to Simplify Portfolio, Advice on Roth Conversions, and Taking SS

Our plan was for me to delay SS until age 70 as I was the high earner. We ignored any break even calculations as we valued the insurance against at least one of us living a very long time. Since you have no pension increasing SS payments might be more attractive to you. Delaying SS is a better deal ...
by SGM
Sun Aug 19, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees: Timing your withdrawals
Replies: 40
Views: 3713

Re: Retirees: Timing your withdrawals

We sold some equities at the end of last year, because we knew we would be doing remodeling of a house we will be moving into. We are also fixing up a 200 year old house for sale. I have all dividends and interest from taxable accounts sent to a bank checking account as they come in. A lot of it end...
by SGM
Sat Aug 11, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Saving Enough for Retirement vs Vacation Home
Replies: 36
Views: 3719

Re: Saving Enough for Retirement vs Vacation Home

Priorities : Retirement is not optional.
Education and vacation home are optional.
by SGM
Sat Aug 11, 2018 4:06 am
Forum: Personal Finance (Not Investing)
Topic: Should I tell my family/friend that they are making a financial mistake?
Replies: 87
Views: 8059

Re: Should I tell my family/friend that they are making a financial mistake?

I once informed a relative that she could take a spousal benefit while allowing her own benefit to grow until 70. She was retired and delaying SS while her husband was collecting. She lost the opportunity for a few months as they were both unaware of this when she reached her FRA. She did start gett...
by SGM
Thu Aug 09, 2018 3:41 am
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 504
Views: 111334

Re: Anyone regret paying off mortgage early?

I still have no regret that I paid off my mortgage in the 1990s. At the time I was 100% in stock. Instead of making mortgage payments I invested the difference every month for years. My mortgage rate was never below 8%.
by SGM
Wed Aug 08, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: "Open Social Security" calculator: feature requests, bug reports, etc
Replies: 195
Views: 17839

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

Once I filed and suspended I no longer could see my PIA. DWs restrict :twisted: ed application and spousal benefit was a little higher than I expected. I assume SS adjusted my PIA for inflation for calculating her spousal benefit because the timing was about 1 1/2 years after my FRA. Looking at my p...
by SGM
Wed Aug 08, 2018 10:54 am
Forum: Investing - Theory, News & General
Topic: If it were March, 2000, would you still allocate 50% to Stocks?
Replies: 94
Views: 4691

Re: If it were March, 2000, would you still allocate 50% to Stocks?

In 2000 I was 100% in stocks. I had no investments in dot.com stocks. During accumulation I invested monthly in the stock market for many years. I preferred the market to be down while accumulating as I bought more shares for the same amount of money. If I sold stock from my taxable account it was o...
by SGM
Tue Aug 07, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 737
Views: 70346

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

From the White Coat Investor article it is clear that in a taxable account Vanguard Total Market Fund's better after tax return dwarfs the savings in ERs with the Fidelity Fund. For taxable accounts I am sticking with Vanguard Total Market Fund. I don't know if I will change anything in the Roth acc...
by SGM
Mon Aug 06, 2018 10:06 am
Forum: Local Chapters and Bogleheads Community
Topic: How did you become a Boglehead?
Replies: 53
Views: 3744

Re: How did you become a Boglehead?

It is hard to believe I bought the Vanguard S&P 500 index fund 30 years ago for my first child's UTMA account. I had a lot of BH qualities way before I heard the term Bogleheads. I think I first heard about Bogleheads was from one of Bernstein's books almost 10 years ago. The main influences over th...
by SGM
Sat Aug 04, 2018 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Soc Sec benefit estimates: Anyone get a nasty surprise when filing?
Replies: 61
Views: 7936

Re: Soc Sec benefit estimates: Anyone get a nasty surprise when filing?

I just received written notice of what my SS payment will be shortly. It was within one dollar of what I expected given earlier statements. One of the online estimators was $20 off. One time I ran it the results were $20 high with a slightly different change it was $20 low. Anyway when I looked at m...
by SGM
Sat Aug 04, 2018 3:00 am
Forum: Investing - Theory, News & General
Topic: Will dividend spending only portfolio last forever ?
Replies: 90
Views: 6111

Re: Will dividend spending only portfolio last forever ?

Dividends are low enough that a portfolio should last for a lifetime. A lot of people only spend dividends in retirement as a matter of forced discipline. One needs some combination of large enough portfolio, small enough expenses and sufficient other income to be able to live comfortably on dividen...
by SGM
Tue Jul 31, 2018 10:55 am
Forum: Investing - Theory, News & General
Topic: I’m still not a fan of international bond funds
Replies: 213
Views: 21063

Re: I’m still not a fan of international bond funds

I am not a fan of international bond funds either. I have read some of the previous posts but not all. Recently heard GW professor Arun Muralidhar mention that companies that offer target date funds have a safe harbor against lawsuits. He stated that any variation from target date funds could open t...
by SGM
Mon Jul 30, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Soc Sec benefit estimates: Anyone get a nasty surprise when filing?
Replies: 61
Views: 7936

Re: Soc Sec benefit estimates: Anyone get a nasty surprise when filing?

My first deposit will come in shortly. I have received estimates for Dec 2017 another for January and May 2018. They look pretty close to estimates via several calculators mentioned in this thread. Once I filed and suspended I could not use one of their on-line calculators. Pretty soon I will get my...
by SGM
Mon Jul 30, 2018 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Why is rollover to Roth with Pre-Tax $$ So Bad?
Replies: 28
Views: 2533

Re: Why is rollover to Roth with Pre-Tax $$ So Bad?

If you pay taxes on a conversion out of a taxable account then the purchasing or buying power is preserved at the time of conversion. In the 25% tax bracket a conversion of traditional of $100k ($75k purchasing power) + $25k taxable has a purchasing power of $100k After conversion $100k in Roth, ze...
by SGM
Sun Jul 29, 2018 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Retirees: how much cash?
Replies: 61
Views: 6654

Re: Retirees: how much cash?

We are keeping more cash than usual as we are fixing up a house for sale and a house to move into. It is difficult to know how much the repairs will cost in houses that are 200 years and 150 years old. In about one year things will be more stable. I will probably be speaking to a fixed income specia...
by SGM
Sun Jul 29, 2018 4:06 am
Forum: Investing - Theory, News & General
Topic: Heresy: is using a SP500 index still a valid strategy ?
Replies: 28
Views: 4701

Re: Heresy: is using a SP500 index still a valid strategy ?

I have never been out of the market in 40 years of investing. Cash accounts are almost guaranteed not to keep up with inflation. I consider cash accounts risky for that reason. Market timing rarely beats leaving your money in the market. The S&P 500 performance has always been heavily influenced by ...
by SGM
Sat Jul 28, 2018 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement and SS and Roth and 529
Replies: 4
Views: 565

Re: Retirement and SS and Roth and 529

With the new limits of $22.4 million estate not taxed 529s may not be helpful as an estate planning tool. Here is a scenario when limits on lifetime gifts was lower. Grandparents overfilled 529s and are deceased. Adult grandchildren have completed their education and family is cashing out the 529 ov...
by SGM
Sat Jul 28, 2018 4:21 am
Forum: Investing - Help with Personal Investments
Topic: Why is rollover to Roth with Pre-Tax $$ So Bad?
Replies: 28
Views: 2533

Re: Why is rollover to Roth with Pre-Tax $$ So Bad?

If you pay taxes on a conversion out of a taxable account then the purchasing or buying power is preserved at the time of conversion. In the 25% tax bracket a conversion of traditional of $100k ($75k purchasing power) + $25k taxable has a purchasing power of $100k After conversion $100k in Roth, zer...
by SGM
Fri Jul 27, 2018 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: keep cash in after-tax for bridge to Social Security ?
Replies: 32
Views: 2810

Re: keep cash in after-tax for bridge to Social Security ?

I ended up spending from bond and stock dividends from taxable in the 4 years I delayed SS. I did cash in some I-bonds from treasury direct, because I think they might have been difficult for DW to access. That was another reason I took a small pension earlier than I might have otherwise. My other p...
by SGM
Thu Jul 26, 2018 8:24 am
Forum: Investing - Theory, News & General
Topic: When Buckets Really aren’t Buckets.
Replies: 18
Views: 1963

Re: When Buckets Really aren’t Buckets.

I have never had any emergency fund, but kept a little in cash to pay monthly bills. I have been retired 4 years and don't have actual buckets, but I have a spending hierarchy. First I spend from pension, TIAA-CREF annuity, spousal SS benefit, soon delayed until 70 SS, rents, then any unreinvested d...
by SGM
Wed Jul 25, 2018 4:53 am
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9474

Re: Vanguard Paper on Roth Conversion Analysis

Paying taxes for conversions was the only way I would have done a conversion. I recognized and have written about how there is a small advantage of decreasing ongoing tax drag on my taxable account which is lowered slightly by paying the taxes at the time of conversion. I don't think my taxable acco...