Search found 2727 matches

by SGM
Sat Nov 17, 2018 4:30 am
Forum: Personal Finance (Not Investing)
Topic: [Financial] Habits of the Rich
Replies: 155
Views: 19145

Re: [Financial] Habits of the Rich

A certain two billionaire would come to high school football games and attend the big tail gate parties given by the school. After his divorce he became a billionaire. :oops:
by SGM
Fri Nov 16, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Why I plan on buying a life annuity - even if it is a stupid idea
Replies: 52
Views: 4203

Re: Why I plan on buying a life annuity - even if it is a stupid idea

I do think that SPIAs are more secure than a large portfolio. The Uncle Phan in the HumbleDollar article gave money away, He took a lump sum instead of a pension and blew it. He moved into a shack. The father of the author had the same option and took an annuity instead of the lump sum. He had a con...
by SGM
Fri Nov 16, 2018 10:44 am
Forum: Personal Finance (Not Investing)
Topic: [Financial] Habits of the Rich
Replies: 155
Views: 19145

Re: [Financial] Habits of the Rich

I am comfortable. My definition of rich is being able to own a string of polo ponies and spending the winter in Argentina playing polo. :wink: I have never spent to impress anyone. Early on I was lucky in the real estate market and in a few investments. It was important to me to stay out of debt as ...
by SGM
Thu Nov 15, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: Can someone explain specifically how the "bucket" approach to retirement withdrawals is supposed to work?
Replies: 75
Views: 4709

Re: Can someone explain specifically how the "bucket" approach to retirement withdrawals is supposed to work?

I looked at bucket strategies and felt they added complication without much benefit. I have a variety of stock, cash and bonds and income streams in retirement. I don't keep an emergency fund. I read Ray Lucia's thoughts on buckets and later Christine Benz. While delaying SS from 66 until 70 I had a...
by SGM
Mon Nov 12, 2018 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: Creating a Bridge to Social Security
Replies: 11
Views: 864

Re: Creating a Bridge to Social Security

I put four years expenses into a 7 year savings annuity paying tax deferred interest. Initially it was paying 4% and now down to 3.2%. After the first year I could take 10% per year out without penalty. After the 7th year I could take any amount out of it. Fortunately I didn't need it as other incom...
by SGM
Mon Nov 12, 2018 1:16 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13086

Re: Diversification Regret

I think I am fairly well diversified. My portfolio isn't perfect, but it has done well over the long term. Like a lot of long time investors I still have a few individual stocks. Large capital gains make it difficult to sell all of them. At some point when you get older you consider that an heir wil...
by SGM
Mon Nov 12, 2018 4:26 am
Forum: Investing - Theory, News & General
Topic: What's Your Fixed Income Strategy?
Replies: 89
Views: 8608

Re: What's Your Fixed Income Strategy?

My philosophy changed between accumulation and retirement. During accumulation I was nearly always completely invested 100% in stocks. I never sold in a down market and continued to invest regularly in a down market. Fortunately the market always bounced back during the last 40 years and this turned...
by SGM
Sun Nov 11, 2018 4:37 am
Forum: Personal Finance (Not Investing)
Topic: If expenses are low, are some of us over saving?
Replies: 120
Views: 11675

Re: If expenses are low, are some of us over saving?

We went out every weekend when we were first married and both working. We lived off of one paycheck and invested the other. We bought a nice affordable house although we could have bought a bigger house higher up in the hills. It seemed foolish to overextend ourselves with a larger mortgage. The onl...
by SGM
Sat Nov 10, 2018 9:44 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs traditional for lower income maid
Replies: 8
Views: 752

Re: Roth vs traditional for lower income maid

Thanks for the replies. I don't know how much they work with their friend who does their taxes or how knowledgeable that person is. I don't want to get into their personal business. I do know that for 25 years they sent money back to Peru to help their family. Now the wife is considered evil because...
by SGM
Sat Nov 10, 2018 9:32 am
Forum: Personal Consumer Issues
Topic: Favorite "free stuff"?
Replies: 131
Views: 9716

Re: Favorite "free stuff"?

I get a lot of free food including blue claw crabs, oysters, shrimp, apples, corn, rock fish (striped bass),and venison. I also get about 20 free meals a year at a bbq joint. Free lunches at hospital Grand Rounds with free continuing medical education up to twice a month with good conversation with ...
by SGM
Fri Nov 09, 2018 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs traditional for lower income maid
Replies: 8
Views: 752

Roth vs traditional for lower income maid

I was discussing retirement with our maid who is in her 60s. She and her husband have never heard of IRAs. They are fairly recent legal immigrants. They have no retirement accounts or 401ks. I discussed the advantages of traditional IRAs and Roth IRAs and referred them to Vanguard. The husband will ...
by SGM
Fri Nov 09, 2018 5:08 am
Forum: Personal Finance (Not Investing)
Topic: Inherited ~200k cash. 27-28y/o. Want to go to grad school/medical school. Want to invest in real estate right now.
Replies: 19
Views: 2392

Re: Inherited ~200k cash. 27-28y/o. Want to go to grad school/medical school. Want to invest in real estate right now.

It is not too late to get both degrees although some BHs may discourage you. Residential real estate is a bit of a burden while studying. I recently found out that my masters thesis completed almost 40 years ago was included in "Retrospective Theses and Dissertations" by the official "Stars" adminis...
by SGM
Thu Nov 08, 2018 4:10 am
Forum: Investing - Help with Personal Investments
Topic: Take SS or do Roth conversion
Replies: 7
Views: 969

Re: Take SS or do Roth conversion

A widow can pay more taxes than a couple even if the income goes down after one spouse dies. This argues for more conversions. We will be living off taxable accounts and other income streams for a very long time given projected longevity. I am certain that RMDs would push us up into the next higher ...
by SGM
Tue Nov 06, 2018 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 14554

Re: How much money are you leaving your kids after you die?

I have been contributing to Roth IRAs for my children since they had their first summer jobs. I continue to contribute while they have full time jobs and act responsibly. One came to a national BH meeting and seemed to learn a lot about the BH ways.
by SGM
Tue Nov 06, 2018 4:05 am
Forum: Personal Finance (Not Investing)
Topic: Income in retirement?
Replies: 14
Views: 1931

Re: Income in retirement?

I have a friend who sells covered calls. It seems like a lot of work which would increase taxes for me which are already large. There is the possibility of losing some potential capital gains by selling covered calls. Getting 4-6% dividends would be a risky proposition in terms of decreasing diversi...
by SGM
Mon Nov 05, 2018 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Is it more advantageous to live in HCOL or LCOL area in terms of financial independence?
Replies: 180
Views: 11003

Re: Is it more advantageous to live in HCOL or LCOL area in terms of financial independence?

The key for me to become financially independent was to increase my skills and invest in my human capital as well as in the stock market. For my father he became financially independent by working in an up and coming industry and leaving a dying industry. I don't think being in a HCOL or LCOL had th...
by SGM
Wed Oct 31, 2018 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: If On Medicare Before SS, How Do You Pay?
Replies: 40
Views: 3163

Re: If On Medicare Before SS, How Do You Pay?

Initially I paid by check then credit card. Later I allowed Medicare to bill directly and automatically out of my checking account. I had read somewhere that missing Medicare payments could jeopardize my delayed SS payments So I made the payment automatic and always had enough in my checking account...
by SGM
Wed Oct 31, 2018 3:47 am
Forum: Personal Consumer Issues
Topic: Do you meditate?
Replies: 142
Views: 14702

Re: Do you meditate?

I learned relaxation techniques 40 years ago when my then employer brought in a psychology professor for a several hour session on type A behavior and the need for relaxation. The relaxation technique was very effective for the attendees. The technique involved tensing and relaxing individual muscle...
by SGM
Mon Oct 29, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Help! For a larger size taxable account do I pay an advisor?
Replies: 51
Views: 4051

Re: Help! For a larger size taxable account do I pay an advisor?

The question as I see it is should you flip a coin or pay an advisor to flip a coin. Don't waste your money on an expensive advisor. Own the whole market.
by SGM
Sat Oct 27, 2018 5:37 pm
Forum: Investing - Theory, News & General
Topic: Why I'm 100% stocks
Replies: 149
Views: 17209

Re: Why I'm 100% stocks

Why did you choose the number "100%?" Why are you convinced that a little leverage, 120% stocks, say, would not be better yet? What parts of your argument do not apply to the situation of 120% stocks? Capital call risk. Margin rate risk. Opportunity risk. Return sequence risk. Leverage endangers th...
by SGM
Thu Oct 25, 2018 3:49 am
Forum: Personal Finance (Not Investing)
Topic: Retirees: What keeps you up at night?
Replies: 56
Views: 6098

Re: Retirees: What keeps you up at night?

I don't worry about what I cannot change. Finances are in order and I keep active.

Having grown up in New York I cannot root for the Dodgers who abandoned their fans.
by SGM
Tue Oct 16, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: Sears, a 125 year old company is now a penny stock.
Replies: 123
Views: 14767

Re: Sears, a 125 year old company is now a penny stock.

A friend bought a Sears house in Flatbush, Brooklyn within walking distance of a subway station. The house is now worth more than the houses in upscale Scarsdale, NY. A college buddy nicknamed Jimbo came back to campus with a Sears credit card with the name Jim Bo on it. About 40 years ago Sears had...
by SGM
Sun Oct 14, 2018 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Have you annuitized some of your money?
Replies: 67
Views: 5847

Re: Have you annuitized some of your money?

I took a company pension that is basically an SPIA. DW annuitized her TIAA-CREF 403b. The TIAA-CREF annuity is the only variable annuity I would buy. It is very low cost and the payout can go up or down, but historically has gone up. We both delayed SS until 70 while using the file and suspend with ...
by SGM
Wed Oct 10, 2018 4:18 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 198
Views: 10856

Re: Allan Roth doesn't like single premium annuities

There are better ways of addressing longevity risk. You hinted at this in your article but never addressed the "better ways." Could you let us in on what those better ways are? By the way, thanks much for contributing to this thread. You aren't being dumped on, this is a tough crowd. Just ask Larry...
by SGM
Mon Oct 08, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: What part of your investment philosophy was "Inspired by Jack Bogle"?
Replies: 27
Views: 1159

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Jack Bogle's unselfishness and dedication to the cause of lowering costs for the average investor is inspirational.
by SGM
Mon Oct 08, 2018 5:08 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 198
Views: 10856

Re: Alan Roth doesn't like single premium annuities

I have read that the correlation between bonds and stocks have been 59% or 0.59 over the long term. If the correlation increases then retiree portfolios will not have as much safety built in by having a higher amount of bonds. In such a scenario more portfolios will fail. Good luck in a downturn if ...
by SGM
Sun Oct 07, 2018 8:31 am
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11737

Re: “It’s probably wise to sell to the sleeping point.” - Jack Bogle

Jack didn't have much to say about the risk of sequence of returns when questioned at the Philadelphia meeting. For Jack sequence of returns would be of little consequence. For most retirees sequence of returns is important. 1966 was the worst year to retire in recent years with data. The average re...
by SGM
Sat Oct 06, 2018 9:08 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 198
Views: 10856

Re: Alan Roth doesn't like single premium annuities

I think a ladder of SPIAs will be a helpful addition to our retirement. I completely understand the inflation downside and that early on it is a return of principal. Having a large portfolio is helpful, but having multiple income streams will allow us to take out less from our portfolio. Also income...
by SGM
Tue Oct 02, 2018 4:19 am
Forum: Investing - Theory, News & General
Topic: Thoughts on investing for dividends? Website DRIP?
Replies: 7
Views: 794

Re: Thoughts on investing for dividends? Website DRIP?

I had been a DRIP investor for a long time in my taxable account. I kept track of my investments by keeping the yearly summary statement for each stock. Fees have become higher than when I originally invested. Computershare raised fees on reinvested dividends as I recall. A few individual companies ...
by SGM
Mon Oct 01, 2018 1:27 am
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 6834

Re: Why is Home Part of NW [Net Worth]

Around 2008 it was difficult to sell homes even in high cost of living areas such as D.C. This hit nursing homes in the area. Many beds remained open because many of the elderly could not sell their homes. At that time many nursing homes decreased the number of nursing home beds permanently and incr...
by SGM
Fri Sep 28, 2018 9:28 am
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct has awesome phone support! Thanks!
Replies: 21
Views: 1854

Re: Treasury Direct has awesome phone support! Thanks!

I don't mind the website and I have occasionally hit the back arrow on my computer unthinkingly. Maybe I am feeling my age, but I decided to empty my Treasury Direct account because of the problem of heirs obtaining the bonds that are held electronically. I have a few paper I-bonds in a safety depos...
by SGM
Fri Sep 28, 2018 1:44 am
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 37
Views: 3308

Re: Digging deeper on advisability of Roth Conversions

I did continue to contribute to a tax deferred solo 401k while doing conversions when I started to work part time prior to transitioning into full retirement. I finished complete conversions of all my tax deferred accounts to Roth accounts occurred over several years before I started delayed SS and ...
by SGM
Thu Sep 27, 2018 7:59 am
Forum: Investing - Theory, News & General
Topic: Don't Fear the Reaper (RMDs) - White Coat Investor blog post
Replies: 65
Views: 7641

Re: Don't Fear the Reaper (RMDs) - White Coat Investor blog post

I have read James Lange's books Retire Secure and The Roth Revolution . James Lange believes in "paying taxes later" except in situations where RMDs will be large in retirement. He gives many specific examples in the latter book. I won't go into detail but delaying SS while converting all tax deferr...
by SGM
Mon Sep 24, 2018 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: 1041 question for estate tax
Replies: 3
Views: 339

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: 339

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: 9491

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: 139
Views: 8824

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: 9491

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: 9491

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: 1056

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: 9491

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: 5431

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: 43447

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: 43447

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: 1876

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: 134
Views: 10292

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: 5890

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: 6024

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: 5653

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: 2255

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 ...