Search found 2667 matches

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: 120
Views: 10717

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: 14
Views: 1309

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: 38
Views: 2956

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: 3561

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: 7716

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: 109231

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: 180
Views: 15435

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: 4313

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 two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)
Replies: 667
Views: 57501

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: 3460

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: 7722

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: 5709

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: 212
Views: 19737

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: 7722

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: 2403

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: 6365

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: 4582

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: 522

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: 2403

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: 2725

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: 1877

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: 9164

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...
by SGM
Mon Jul 23, 2018 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Why not go 100% stocks?
Replies: 125
Views: 13927

Re: Why not go 100% stocks?

I was 100% stock for many years while accumulating. When I had DRIPs early on it was more difficult to make a sale. That mental trick helped me stay the course when I was young. I also noted that I was buying more shares with my monthly investments when the market was down. It is difficult to stay t...
by SGM
Sun Jul 22, 2018 3:16 pm
Forum: Personal Consumer Issues
Topic: 529 Withdrawal Refresher
Replies: 3
Views: 333

Re: 529 Withdrawal Refresher

I would take the full amount out including the amount of the scholarship. I do not believe there is a tax or penalty on any gains if it is used for allowable college expenses including what is covered by a scholarship. If you wanted to start a new 529 or add some back in the current 529 a state tax ...
by SGM
Sun Jul 22, 2018 5:34 am
Forum: Investing - Theory, News & General
Topic: "4 Reasons Why We Overcomplicate Investing"
Replies: 30
Views: 5035

Re: "4 Reasons Why We Overcomplicate Investing"

For me the top reason preventing more simplification is the tax issue. In the days when I invested in individual stocks I accumulated a lot of future capital gains. One of my chores is determining which sales if any I should make on a yearly basis in order to simplify. I also prefer muni bond funds ...
by SGM
Sat Jul 21, 2018 4:13 am
Forum: Investing - Help with Personal Investments
Topic: Should I Dump a Pile of Money on Young Son?
Replies: 157
Views: 13348

Re: Should I Dump a Pile of Money on Young Son?

As a couple $30k per year gifts could be started now regardless what you do with the rest of the money. Those $30k gifts are not taxed and do not count towards any estate tax limits. You could set up a trust with part or all of the money. Current federal estate tax limits are over $11 million per in...
by SGM
Fri Jul 20, 2018 8:48 am
Forum: Personal Consumer Issues
Topic: Fake IRS calls - anybody care?
Replies: 62
Views: 3495

Re: Fake IRS calls - anybody care?

I report all these phony IRS calls to the FTC with an explanation. I hope that they follow up, but it takes only a few minutes to report the calls on the internet site. A friend keeps the FTC phone number and calls in to report scams. My cell phone provider reports many calls as "scam alerts". I gen...
by SGM
Thu Jul 19, 2018 4:27 am
Forum: Investing - Help with Personal Investments
Topic: How do you handle the urge to DO something?
Replies: 102
Views: 7191

Re: How do you handle the urge to DO something?

This has become more of an issue since I retired. Currently I don't reinvest dividends so every month cash piles up. I do fiddle around with some cash like accounts and shorter term bond funds, CDs and treasuries etc. Maybe I look for some tax loss harvesting opportunities. Any changes I make are sm...
by SGM
Wed Jul 18, 2018 4:41 am
Forum: Investing - Help with Personal Investments
Topic: Heresy: Is It Worth Converting tIRAs to Roth?
Replies: 46
Views: 4557

Re: Heresy: Is It Worth Converting tIRAs to Roth?

One reason we are in a higher bracket in retirement is that we don't make large tax deferred contributions to a solo 401k anymore. I was glad to pay the additional taxes due to conversions out of my taxable account. We started conversions 8 years ago in 2010 and completed them over 6 years. There ar...
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: 2473

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: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 179
Views: 12193

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: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 179
Views: 12193

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: 206
Views: 15068

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: 359
Views: 15167

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: 359
Views: 15167

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: 643

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: 2264

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: 6135

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: 1036

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: 5631

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: 3133

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: 2783

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: 19064

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: 11661

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: 5639

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: 4946

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: 8972

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: 5737

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: 5737

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...