Search found 2605 matches

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: 75
Views: 5173

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: 28
Views: 2750

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: 449
Views: 99656

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: 10838

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: 66
Views: 2543

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: 8607

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: 11120

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: 2288

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: 24
Views: 2698

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: 10028

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: 3696

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: 11120

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: 17926

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: 273
Views: 12443

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: 273
Views: 12443

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: 2017

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: 1142

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: 138
Views: 37094

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?
by SGM
Fri Jun 01, 2018 3:14 am
Forum: Personal Consumer Issues
Topic: how do you tip on wine at a restaurant
Replies: 209
Views: 12334

Re: how do you tip on wine at a restaurant

I tip based on the whole bill including tax. Generally, I tip 25% or more because it pleases me to tip hard working people.
by SGM
Thu May 31, 2018 3:39 am
Forum: Investing - Help with Personal Investments
Topic: Taking a pension to invest in stocks
Replies: 47
Views: 2601

Re: Taking a pension to invest in stocks

I would delay the pension if still working. The health of the pension plan should be accessible information. He could use the higher payments to help pay his expenses if he is delaying SS later on. The stock market is risky as well and using an advisor he is likely paying higher expense ratios for h...
by SGM
Wed May 30, 2018 4:09 pm
Forum: Investing - Theory, News & General
Topic: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??
Replies: 14
Views: 2009

Re: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??

We do have one investment that is essentially a tax deferred CD, muni bond funds and some treasuries. I do use 50% of incoming dividends and muni interest in calculations projecting out into the future. This may be a little conservative, but I can spend whatever I need. The other income includes far...
by SGM
Tue May 29, 2018 8:10 am
Forum: Investing - Help with Personal Investments
Topic: Does anticipated SS alter today’s allocation?
Replies: 20
Views: 1855

Re: Does anticipated SS alter today’s allocation?

I stopped working/earning a wage at 66. Looking forward to age 70, I saw that SS would more than cover my basic living expenses, so I felt comfortable with the risk of a 60/40 AA. In other words, I don't count SS as a part of my AA, but it is an element in making decisions about my risk tolerance. ...
by SGM
Tue May 29, 2018 3:10 am
Forum: Investing - Help with Personal Investments
Topic: Does anticipated SS alter today’s allocation?
Replies: 20
Views: 1855

Re: Does anticipated SS alter today’s allocation?

I don't think receiving delayed SS in the near future will alter our current allocation. We are still a little on the aggressive side for being 4 years into retirement at 70/30. New money will continue to go into bond funds for the most part. If we had been at 50/50 I might change it to 60/40. As it...
by SGM
Mon May 28, 2018 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Purchase SPIA through Vanguard?
Replies: 18
Views: 1711

Re: Purchase SPIA through Vanguard?

I am not yet ready to buy an SPIA but I have looked at various offers and Vanguard's payout quote was slightly higher than others. I am delaying SS until age 70 and I consider the delay a better annuity payout than annuity payouts available from an insurance company. Vanguard's payout quote and imme...
by SGM
Sun May 27, 2018 5:56 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 141
Views: 20202

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

Buffett can demand higher interest or dividend rates from corporations. I recall 30 years ago he bought $400 million a special UAL preferred issue. Berkshire was getting a higher dividend rate than the preferred that was available to the public. He later wrote off his investment a total loss, howeve...
by SGM
Sun May 27, 2018 1:43 am
Forum: Investing - Help with Personal Investments
Topic: recommended Roth percentage of total investments
Replies: 17
Views: 2799

Re: recommended Roth percentage of total investments

As much as you can contribute or convert at a tax rate less than, equal to, or not too much higher than the tax rate you expect will apply to distributions. I completely agree with the above. I made my first conversion in 2010 when the law changed to allow conversions regardless of income levels. I...
by SGM
Sat May 26, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 4497

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

I assume there will be no capital gains on the sale of the house.

Suggestions to partially annuitize with serial SPIAs seems like the best plan to make the $350k last. It seems to me that the house owner is in the situation where SPIAs can be very helpful.
by SGM
Sat May 26, 2018 12:54 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13328

Re: Renting vs Owning Your Home

Paying off our mortgage years ago with money that would have been in bonds was a good deal for us. What would have been continuing mortgage payments were then put into monthly stock purchases. Prices in this area have doubled since we paid off our mortgage. The stock market did well. If we had bough...
by SGM
Sat May 26, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: Is inflation the greatest risk to retirement portfolios?
Replies: 100
Views: 8269

Re: Is inflation the greatest risk to retirement portfolios?

Among the bigger losses I have seen to those in late retirement and in the early to later stages of dementia is fraud.
by SGM
Tue May 22, 2018 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: How do you stop moving the goal posts.
Replies: 62
Views: 4934

Re: How do you stop moving the goal posts.

I truly believe self worth is not related to either net worth or income. Someone suggested an exercise of writing a "manifesto" which listed the reasons why you are entitled to be a "connoisseur of happiness". The manifesto could be used like an investment plan statement that you can refer to whenev...
by SGM
Mon May 21, 2018 8:02 am
Forum: Investing - Theory, News & General
Topic: Good read on why to keep a simple indexed fund portfolio
Replies: 11
Views: 2298

Re: Good read on why to keep a simple indexed fund portfolio

My Vanguard account had a 7.4% return over the same time period. I know it is not a truly accurate comparison, but it still makes me feel good to have done better than the hedge funds average return and the author's better returns case of 6.2%. I had been looking at my portfolio returns and saying t...
by SGM
Sun May 20, 2018 9:59 am
Forum: Investing - Theory, News & General
Topic: If RMD are large should you still defer into 401k
Replies: 32
Views: 3158

Re: If RMD are large should you still defer into 401k

One thing that worked for my situation (working part time prior to retiring completely) was that I continued to make 401k contributions while at the same time I made Roth conversions. My tax deferred space remained the same while my Roth space increased and taxable account decreased in that particul...
by SGM
Sat May 19, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Assisted Living tax deduction as medical expense
Replies: 23
Views: 1932

Re: Assisted Living tax deduction as medical expense

Bir48die wrote: The only part you can deduct for assisted living is the dedicated nursing part It is actually a little more expansive than that. Quoting from Publication 17, Medical and Dental Expenses: "Medical expenses also include amounts paid for qualified long-term care services . . . . Nursin...
by SGM
Fri May 18, 2018 8:48 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 493
Views: 29133

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

We are at a higher rate in retirement than in most of our working years. While working we contributed to tax deferred accounts to the maximum. Roth accounts were not available or allowed for someone with our income until 2010. Most of my working years were before Roth accounts even existed. Most of ...
by SGM
Tue May 15, 2018 3:52 pm
Forum: Local Chapters and Bogleheads Community
Topic: Yes, I'm 89 all right! [Jack Bogle]
Replies: 126
Views: 9881

Re: Yes, I'm 89 all right!

Happy Birthday Jack. Your work output has been an inspiration. Your mission has been wonderful for investors everywhere. Thank you.
by SGM
Tue May 15, 2018 4:33 am
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 140
Views: 11575

Re: The front page is ugly

This site is refreshingly simple to read unlike most other sites that require constant scrolling and are slow to load. I don't need flashiness to distract from content.
by SGM
Mon May 14, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: When to claim Social Security: two reasons not to wait
Replies: 68
Views: 11920

Re: When to claim Social Security: two reasons not to wait

I agree that the majority of people are happy with their decision regardless of whether they took SS late or early. I do know a few widows who wish their higher earning husbands had delayed taking SS. As I have earlier stated my chief reason to delay taking SS until 70 was I considered it a form of ...
by SGM
Sat May 12, 2018 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Living off Dividends of Vanguard Total Stock
Replies: 49
Views: 6690

Re: Living off Dividends of Vanguard Total Stock

Sometimes internet disagreements remind of a long ago work event. A new employee who was loudly and publicly complaining for an extended period of time, his exasperated boss after many attempts to mollify the employee said, " I need to go to the grocery store." Why? ... came the continued heated res...
by SGM
Fri May 11, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Living off Dividends of Vanguard Total Stock
Replies: 49
Views: 6690

Re: Living off Dividends of Vanguard Total Stock

With a large enough portfolio one can live off the dividends. If you are successful with this plan you will leave a legacy. Long Term capital gains are more tax efficient than dividend income in taxable accounts. Being 100% in stock in retirement is a little risky. I was 100% in stock for many years...
by SGM
Thu May 10, 2018 4:18 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6825

Re: Factors Suggesting One Should Buy SPIA

...I have converted all my tax deferred accounts to RMDs over a period of about 5 years. This was done while I was either working part-time and still making solo 401k deposits and while retired before taking delayed SS... Perhaps you meant all tax deferred accounts to Roth IRAs? Oops. Thank you Wiz...
by SGM
Wed May 09, 2018 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6825

Re: Factors Suggesting One Should Buy SPIA

I don't have time to go into details about Joe Tomlinson's article. People with no pension or annuity with a conservative portfolio have a 67.4% probability of running out of money in a 30 year retirement using a 4.5% inflation adjusted withdrawal rate. The probability of running out of money drops...
by SGM
Wed May 09, 2018 8:19 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6825

Re: Factors Suggesting One Should Buy SPIA

Joe Tomlinson shows how delaying SS and adding a SPIA will positively affect a portfolio during retirement. I have been introduced to Joe at several SS research symposia. More recently I have been reading his research and am impressed. He also looks at going from 50 to 75% stock allocation and a re...
by SGM
Wed May 09, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6825

Re: Educating an adult child about investing

I am in the process of educating one of my adult children who will be attending the BH national meeting for the first time this year. SGM: In my opinion, this is one of the best things you can do to start an adult child on the road to investment success. Best wishes Taylor Thank you Taylor. A trip ...
by SGM
Tue May 08, 2018 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6825

Re: Factors Suggesting One Should Buy SPIA

Joe Tomlinson shows how delaying SS and adding a SPIA will positively affect a portfolio during retirement. I have been introduced to Joe at several SS research symposia. More recently I have been reading his research and am impressed. He also looks at going from 50 to 75% stock allocation and a re...
by SGM
Tue May 08, 2018 4:47 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6825

Re: Factors Suggesting One Should Buy SPIA

Joe Tomlinson shows how delaying SS and adding a SPIA will positively affect a portfolio during retirement. I have been introduced to Joe at several SS research symposia. More recently I have been reading his research and am impressed. He also looks at going from 50 to 75% stock allocation and a rev...
by SGM
Sun May 06, 2018 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Jonathan Clements "Where Money Grows Up"
Replies: 9
Views: 2051

Re: Jonathan Clements "Where Money Grows Up"

I have bought Clements books for my adult children to read. I never made a significant impulse purchase, but I do indulge myself with the purchase of small items on impulse. Certain annuities I like and have educated myself about those that are rip-offs. Expensive kitchen remodels done by people who...
by SGM
Sat May 05, 2018 4:13 am
Forum: Investing - Help with Personal Investments
Topic: How are you widow-proofing?
Replies: 35
Views: 4550

Re: How are you widow-proofing?

All tax deferred accounts are now in Roth accounts so there are no RMDs to be concerned with. Dividends, SS, pension, TIAA annuity, and some rental income are automatically deposited into a local bank account. I am delaying SS until 70 so spouse will receive the maximum amount as a widow in the like...
by SGM
Fri May 04, 2018 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Downloadable Social Security Benefit Estimator (repost)
Replies: 40
Views: 4823

Re: Downloadable Social Security Benefit Estimator (repost)

I used your spreadsheet and compared it to the SS website on-line calculator. Your program came up with a result $21 a month higher for taking SS at age 70 than the SS on-line calculator. So I am going with your estimate. :wink: I had trouble downloading the SS website detailed calculator and can no...
by SGM
Wed May 02, 2018 8:15 am
Forum: Investing - Help with Personal Investments
Topic: Berkshire Hathaway B
Replies: 65
Views: 6506

Re: Berkshire Hathaway B

A couple of things happened when I decided to sell some Berkshire. Buffett got older and so did I. I wanted to spend less time analyzing individual stocks and more time enjoying life. I did fairly well with most of my individual stocks. I had a couple of losers too as is inevitable. I would rather h...
by SGM
Wed May 02, 2018 3:18 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 3573
Views: 1019012

Re: What Movie Have You Recently Watched?

Borg/McEnroe was a good film. I never knew how stressed Borg was and what a temper he had beginning as a top amateur as a kid. Borg was banned from top amateur play for 6 months when young. His future coach was almost a second father too him. Borg became obsessive compulsive and remained so in his 2...