Search found 156 matches

by redhounds
Mon Nov 04, 2013 6:17 pm
Forum: Personal Investments
Topic: Social Security withdrawal strategy
Replies: 6
Views: 972

Re: Social Security withdrawal strategy

Forgot to mention--a few years of extra money to your daughter, while nice, can't compete with the (likely) decades that your wife will be collecting the larger delayed retirement benefit amount.
by redhounds
Mon Nov 04, 2013 6:15 pm
Forum: Personal Investments
Topic: Social Security withdrawal strategy
Replies: 6
Views: 972

Re: Social Security withdrawal strategy

Does your wife have a large benefit of her own to draw from later? Assuming that the answer to that is "no," I would think that delaying until you are 70 would be the best, as she will eventually be collecting your benefit if you predecease her. Given the age difference and the generally i...
by redhounds
Sat Nov 02, 2013 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Strategies
Replies: 22
Views: 3375

Re: Social Security Strategies

I asked a somewhat similar question a few days ago and got some great info http://www.bogleheads.org/forum/viewtopic.php?f=2&t=125638 If you have real numbers from your social security estimated benefits information you'll probably be able to get a more specific answer for your situation. I used...
by redhounds
Fri Nov 01, 2013 3:38 pm
Forum: Personal Investments
Topic: 55K Liquidated from VGELX
Replies: 9
Views: 1109

Re: 55K Liquidated from VGELX

I'm no tax expert, so I have to ask, why 30% capital gains tax? If you've decided that an energy fund is no longer appropriate for your portfolio, selling it off is fine. A plan to buy back in would be blatant market timing. I would redeploy my new funds immediately according to your revamped alloca...
by redhounds
Fri Nov 01, 2013 2:23 pm
Forum: Personal Investments
Topic: Life Annuity instead of Bond/Cash allocation
Replies: 6
Views: 1109

Re: Life Annuity instead of Bond/Cash allocation

A few issues: If you are still in the accumulation phase, when stocks go down, how do you rebalance if all of your other money is in an annuity? That is not an inflation adjusted number. What will the 87 year old version of your wife be able to buy with that $32,280? (at 3% inflation, just to pick o...
by redhounds
Thu Oct 31, 2013 4:17 pm
Forum: Personal Investments
Topic: Should I Buy in this Market?
Replies: 22
Views: 3965

Re: Should I Buy in this Market?

garlandwhizzer wrote:I personally would go in a little at a time for new purchases in this environment
(emphasis mine)

If he just sold individual stocks to buy stock index funds I wouldn't really consider it a new purchase, just a redeployment of assets in a more diversified manner.
by redhounds
Thu Oct 31, 2013 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Gilroy Hain
Replies: 27
Views: 2053

Re: Gilroy Hain

[OT comments removed by admin LadyGeek] Ron [Response to OT comments removed by admin LadyGeek] Not meant as a personal attack, but the level of his benefit is based on the amount he paid in to the system, and the article specifically mentioned that his benefit was "more than the average month...
by redhounds
Thu Oct 31, 2013 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Pharmaceutical Co-pay Coupon
Replies: 11
Views: 1377

Re: Pharmaceutical Co-pay Coupon

If I remember correctly, the Naftin coupon will pay up to $85 of the copay. If you had regular insurance with a $100 copay, your final cost would be $15. According to the what I've been told by a few different drug reps, the coupons cannot be used for Medicare D copays because the brand name drug ma...
by redhounds
Thu Oct 31, 2013 9:03 am
Forum: Personal Finance (Not Investing)
Topic: When to claim spousal benefits
Replies: 5
Views: 985

Re: When to claim spousal benefits

In D) (not C). the wife gets two years of $951 per month between her FRA and his age 70, so about $22,800 before the peak years. Oops! Yes, I meant "D". And even though my unsophisticated spreadsheet showed $22,824 (because I called it a 12 month age difference as well), I still managed t...
by redhounds
Thu Oct 31, 2013 12:11 am
Forum: Personal Finance (Not Investing)
Topic: When to claim spousal benefits
Replies: 5
Views: 985

Re: When to claim spousal benefits

I'm trying to wrap my brain around the different scenarios. Basically, the most the couple would collect in the maximum benefit years in each scenario would be: A) $37,116 B) $38,940 C) doesn't matter D) $39,696 In scenario A, the couple will have collected approximately $55,000 in benefits before t...
by redhounds
Wed Oct 30, 2013 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: When to claim spousal benefits
Replies: 5
Views: 985

When to claim spousal benefits

Given the following numbers and assuming that they will delay taking his social security benefits until he is 70, is the best strategy for the wife to file for spousal benefits at 62 or is it better for the wife to wait until FRA (67)? The wife is 13 months younger than the husband. I would guess th...
by redhounds
Wed Oct 30, 2013 5:06 pm
Forum: Personal Investments
Topic: Portfolio review - sell I bond or not?
Replies: 9
Views: 1335

Re: Portfolio review - sell I bond or not?

The second fact is that now $10,000 could be invested in equities earning a much higher rate as well. Also, with interest rates possibly trending up in the future, the value of the I-bond becomes less and less, if inflation stays low, so should it need to be sold at some point in the future, there ...
by redhounds
Tue Oct 29, 2013 11:11 am
Forum: Personal Investments
Topic: What AA would you suggest going into early retirement?
Replies: 14
Views: 1618

Re: What AA would you suggest going into early retirement?

Quickfoot wrote:If you do wind up needing to SEPP you can break a portion off into another IRA and just SEPP that IRA.
I haven't spent any time researching the 72(t) rules yet, but this one piece of information makes my early retirement planning sooo much easier!
by redhounds
Sat Oct 26, 2013 8:37 pm
Forum: Personal Investments
Topic: Keeping up with Inflation- 10 Year Timeline
Replies: 16
Views: 1742

Re: Keeping up with Inflation- 10 Year Timeline

Why do you prefer I Bonds over EE bonds? Because you specifically said that it had to be as safe as possible AND keep up with inflation AND you said that you'll need the money in about 10 years. EE bonds aren't indexed to inflation and unless you hold them for 20 years, there's no chance that they'...
by redhounds
Fri Oct 25, 2013 2:44 pm
Forum: Investing - Theory, News & General
Topic: Bernstein - Investing in Retirement
Replies: 21
Views: 5881

Re: Bernstein - Investing in Retirement

What Dr. Bernstein is saying here makes a lot of sense to me, but it also flies in the face of much of what I've learned about investing. So let's say one has "enough" to live comfortably and happily for the rest of his/her life (lives). Is he really suggesting that your AA should be (clo...
by redhounds
Thu Oct 24, 2013 8:56 pm
Forum: Investing - Theory, News & General
Topic: Bernstein - Investing in Retirement
Replies: 21
Views: 5881

Re: Bernstein - Investing in Retirement

What he misses is that TIPS are subject to taxflation if the very inflation they are owned to hedge ever gets ugly. Because in order to have 25x spending, it usually requires a big taxable account. Actually, regarding an investor with most of their money in taxable accounts, Dr. Bernstein says that...
by redhounds
Thu Oct 24, 2013 5:40 pm
Forum: Investing - Theory, News & General
Topic: Bernstein - Investing in Retirement
Replies: 21
Views: 5881

Re: Bernstein - Investing in Retirement

A portfolio laddered for 25 years with TIPS bonds eliminates the risks of a poor sequence of returns and inflation but doesn't remove longevity risk. Such a portfolio will last exactly 25 years. What if you last 26? This is touched on in the book. Longevity insurance is one option mentioned. I don'...
by redhounds
Wed Oct 23, 2013 6:31 pm
Forum: Investing - Theory, News & General
Topic: Assets for Liability Matching Portfolio?
Replies: 24
Views: 2990

Re: Assets for Liability Matching Portfolio?

Also, is here any allocation guidance available for constructing the risk side of a LMP? I missed this part of the question earlier. If I'm understanding what I've read correctly, it would not be inappropriate for the risky portfolio to have strong tilts towards small value, both domestically and i...
by redhounds
Wed Oct 23, 2013 4:29 pm
Forum: Investing - Theory, News & General
Topic: Assets for Liability Matching Portfolio?
Replies: 24
Views: 2990

Re: Assets for Liability Matching Portfolio?

This is a good question, and I am wondering about whether a intermediate tips fund with a duration of, let's say, 9 years fit in with a LMP. For example, assume I need $500,000 for my LMP for a 15 year period. I have laddered CDs for about $330,000 that could take care of 10 years of the LMP, and I...
by redhounds
Thu Oct 17, 2013 1:52 pm
Forum: Personal Investments
Topic: Want income but preserve capital
Replies: 40
Views: 4063

Re: Want income but preserve capital

If you are going to venture into any funds at all you might want to consider the Vanguard Managed Payout Distribution Focus. It is pegged to yield 7%, so if you only draw 5% I think this is a pretty good option with a high likely hood of success for you. It's 3 year return has been 9.6% and it's 5 ...
by redhounds
Thu Oct 10, 2013 9:23 am
Forum: Personal Investments
Topic: What should my mother do w her $600,000 retirement money?
Replies: 31
Views: 6207

Re: What should my mother do w her $600,000 retirement money

Why doesn't anybody recommend her investing $500,000 in a lazy portfolio and use a 4% SWR of $20,000 per year to supplement her SS and pension? 1) Because she is "scared of the market" and doesn't want to take the risk. 2) Because she has enough for all of her needs to be met without doin...
by redhounds
Wed Oct 09, 2013 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken and Vanguard - Download Problem
Replies: 219
Views: 28103

Re: Quicken and Vanguard - Download Problem

No - I haven't deactivated/reactivate transaction downloads. Why should I? Because you want it to work again? I haven't changed anything on my side of Quicken 2012. Neither had any of us that were still having problems. Are you saying that doing the deactivated/reactivate process will fix my proble...
by redhounds
Wed Oct 09, 2013 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken and Vanguard - Download Problem
Replies: 219
Views: 28103

Re: Quicken and Vanguard - Download Problem

deleted--answering a question that was already answered (didn't see that this was a 2 page post). I had to deactivate and reactivate to get mine to work. It's really easy, so if anyone is having problems and they haven't done that yet, I'd highly recommend spending the 10 minutes that it takes to try.
by redhounds
Tue Oct 08, 2013 10:53 pm
Forum: Investing - Theory, News & General
Topic: Series EE Savings Bonds Rates
Replies: 6
Views: 1353

Re: Series EE Savings Bonds Rates

If your guess is close, it makes my planned purchase before the end of the year an even easier choice. Fingers crossed. Thanks for the link to the very informative description of how you came up with your guess!
by redhounds
Tue Oct 08, 2013 3:08 pm
Forum: Investing - Theory, News & General
Topic: Series EE Savings Bonds Rates
Replies: 6
Views: 1353

Series EE Savings Bonds Rates

When does the treasury announce the series EE savings bond rates for bonds issued on or after November 1st? Is this a rate that can be calculated in advanced based on available numbers (as one can do with I bonds) or is it just up to the treasury to decide what they want to offer? Thanks!
by redhounds
Mon Oct 07, 2013 4:59 pm
Forum: Personal Investments
Topic: Roth IRA Calendar Question
Replies: 5
Views: 479

Re: Roth IRA Calendar Question

... our 2013 gross household income For the calendar year of 2014, we would be at $205k and over the limit. Is your gross household income $205,000 or your modified adjusted gross annual income $205,000? There are a substantial amount of deductions and exemptions that come off of your gross to get ...
by redhounds
Sat Oct 05, 2013 10:05 am
Forum: Investing - Theory, News & General
Topic: Split portfolios
Replies: 10
Views: 1021

Re: Split portfolios

Thanks! I have a couple of his books and always enjoy learning from his posts here. Sounds like "The Ages of the Investor" is exactly what I'm looking for.
by redhounds
Sat Oct 05, 2013 12:07 am
Forum: Investing - Theory, News & General
Topic: Split portfolios
Replies: 10
Views: 1021

Re: Split portfolios

After reading up a little more on the Permanent Portfolio, I realize that what I'm asking about is already basically recommended to the followers of that plan. Namely, invest at least the money that you "can't afford to lose" in the Permanent Portfolio and invest the rest ("extra"...
by redhounds
Fri Oct 04, 2013 11:03 am
Forum: Investing - Theory, News & General
Topic: Split portfolios
Replies: 10
Views: 1021

Re: Split portfolios

Assuming that: 2. If I believe that withdrawing 3% per year is a safe withdrawal rate for the 25-30 years before collecting social security, at which time I won't need as high as a withdrawal rate This implies a person who is withdrawing when (s)he is 40-45 years old - assumes collecting SS benefit...
by redhounds
Thu Oct 03, 2013 10:36 pm
Forum: Investing - Theory, News & General
Topic: Split portfolios
Replies: 10
Views: 1021

Split portfolios

I'm not sure if this has been discussed before, but I have a hypothetical question that will involve a bunch of assumptions that range from reasonable to stupid. Assuming that: 1. If I believe that I need $N per year to live a comfortable life 2. If I believe that withdrawing 3% per year is a safe w...
by redhounds
Wed Oct 02, 2013 9:38 am
Forum: Personal Investments
Topic: Need some help with backdoor roth strategy...
Replies: 7
Views: 798

Re: Need some help with backdoor roth strategy...

planning on setting up a SEP-IRA later this year to reduce the tax liability I believe that if you set up a solo-401k, like this one through Fidelity: https://www.fidelity.com/retirement-ira/small-business/self-employed-401k/overview that you could roll your IRA into that and open up the back door ...
by redhounds
Tue Oct 01, 2013 6:46 pm
Forum: Personal Investments
Topic: Help with Simple Portfolio - Please
Replies: 4
Views: 644

Re: Help with Simple Portfolio - Please

For all of your tax-advantaged accounts, you should probably check out the Vanguard LifeStrategy Moderate Growth Fund (VSMGX). It matches your goals (60/40 with 30% of equity international and keeps things simple). For the taxable account, I would definitely consider getting the money away from your...
by redhounds
Sat Sep 28, 2013 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Math help, calculating how to pay off my HELOC
Replies: 9
Views: 861

Re: Math help, calculating how to pay off my HELOC

No math needed. If your tax adjusted return from savings is less than your tax adjusted expense, any extra money that would have gone to either savings or loan payoff should go to paying off the loan. The increasing interest rate might motivate you to do it quicker than you otherwise would have, but...
by redhounds
Sat Sep 28, 2013 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Quicken and Vanguard - Download Problem
Replies: 219
Views: 28103

Re: Quicken and Vanguard - Download Problem

Thanks for posting this. I thought that it was an exchange we were doing in my wife's account that was causing us to have problems.
by redhounds
Fri Sep 27, 2013 7:58 pm
Forum: Personal Investments
Topic: Taxable investment account at brokerage firm
Replies: 14
Views: 1275

Re: Taxable investment account at brokerage firm

switching to an indexed strategy averaging around 0.15% should save about $4k/year in fees when I eventually sell all of the old securities. If you have approximately $35,000 in unrealized gains, the yearly savings in expenses over the first 2-4 years would pay the taxes due on the gain and every y...
by redhounds
Fri Sep 27, 2013 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Poll: $ monthly contribution to 529/college savings
Replies: 60
Views: 11847

Re: Poll: $ monthly contribution to 529/college savings

We put whatever the maximum amount is that we can deduct from our state taxes (that's an 8.98% immediate return). For 2013 it was $3,045 per account per child. We rounded it up to $255 per month each. If I had to choose between funding retirement or college, the kids would be out of luck.
by redhounds
Fri Sep 27, 2013 2:35 pm
Forum: Personal Investments
Topic: Is Bond/Bond Fund investing just a bad idea all around now?
Replies: 40
Views: 5122

Re: Is Bond/Bond Fund investing just a bad idea all around n

Forgot to add the usual (and good) advice: you could also buy Series I Savings Bonds (up to $10,000 per year per spouse at Treasury Direct + up to $5,000 more via your tax refund) or CD's if it helps you sleep at night. Are you looking to change your allocation from 70/30 to something else?
by redhounds
Fri Sep 27, 2013 2:28 pm
Forum: Personal Investments
Topic: Is Bond/Bond Fund investing just a bad idea all around now?
Replies: 40
Views: 5122

Re: Is Bond/Bond Fund investing just a bad idea all around n

this is long term. its in my individual brokerage account but still part of my overall retirement. may be some flexibility as far as withdrawal with this but am thinking long term. im referring to a short term bond fund by the way Wait, is this a taxable account? You should be using Muni bonds if y...
by redhounds
Fri Sep 27, 2013 12:58 pm
Forum: Investing - Theory, News & General
Topic: Treasury Direct system allow more than $10k ibonds annually?
Replies: 14
Views: 1444

Re: Treasury Direct system allow more than $10k ibonds annua

bogleviewer wrote:(two $5k debits from checking account).

(via two $5k debits).
Just out of curiosity, why four $5,000 transactions instead of two $10,000 transactions?
by redhounds
Mon Sep 23, 2013 1:59 pm
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 5824

Re: How much risk do I NEED to take?

oops.
by redhounds
Mon Sep 23, 2013 1:45 pm
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 5824

Re: How much risk do I NEED to take?

Yes, 0.97^14 = 0.65 is what you need. But in all honesty, 14 years is a bit far ahead to get too specific. I'd just save/invest heavily over the next 5 years or more and revisit this once you get within 5 years of retirement. Once you get within five years, you'll have a more confident handle on al...
by redhounds
Sun Sep 22, 2013 5:04 pm
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 5824

Re: How much risk do I NEED to take?

Ok, I re-calculated using today's dollars, and just deflating the pension. Income need (in todays' dollars)= $60,000; SS (from latest statement --- $2,533/month) =$30,396; Pension (from latest statement, deflated by 3%) = $30,195 Total income = $61,311. There is no shortfall. I'm scratching my head...
by redhounds
Sun Sep 22, 2013 4:43 pm
Forum: Personal Investments
Topic: My 529 conundrum
Replies: 8
Views: 1320

Re: My 529 conundrum

...the tax savings are sort of negligible--and remember you still have to pay federal income tax on the money you are no longer paying state taxes on. So multiply that $230 you estimated by .75 or so to get your real tax savings. (Depending upon your federal income tax rate) While I agree with the ...
by redhounds
Tue Sep 17, 2013 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: Interest Earned on Emergency Fund
Replies: 8
Views: 1204

Re: Interest Earned on Emergency Fund

Why not keep the emergency fund in a rewards checking account. It doesn't seem like too much trouble to make 10 transactions a month in exchange for some extra interest. I don't see the point in keeping money in something that's no better, and gains less interest. I agree that it's worth the troubl...
by redhounds
Tue Sep 17, 2013 8:20 pm
Forum: Personal Investments
Topic: Asset Allocation
Replies: 33
Views: 2841

Re: Asset Allocation

lloydbraun wrote:I think it's better to just choose an allocation, stick with it, and focus my attention on work and family.
Words to live by. :sharebeer
by redhounds
Tue Sep 10, 2013 2:25 pm
Forum: Personal Investments
Topic: I and EE Savings Bonds for Retirement
Replies: 12
Views: 2179

Re: I and EE Savings Bonds for Retirement

I have always thought of my I bonds as an important part of my early retirement plan. I will most likely use them to help bridge the gaps between partial retirement and age 59&1/2 and between 59&1/2 and delayed Social Security benefits. For now, I consider them part of my overall bond alloca...
by redhounds
Tue Sep 10, 2013 2:14 pm
Forum: Non-US Investing
Topic: Moving to ETF with slightly higher expense ratio
Replies: 6
Views: 564

Re: Moving to ETF with slightly higher expense ratio

If it's a change that you believe in (which you must or else you wouldn't be considering it), it's a no brainer. $30 extra dollars per year per $100,000 invested. I assume that this particular ETF is just a small part of your overall portfolio. How much money are you investing into this one fund? If...
by redhounds
Tue Sep 03, 2013 4:50 pm
Forum: Investing - Theory, News & General
Topic: Rental real estate post - what's the catch?
Replies: 97
Views: 10382

Re: Rental real estate post - what's the catch?

I own/have owned different types of rental property. Single family housing, apartment units, and commercial. It's not that easy to clear enough to make 7% after paying someone else to do all of the work. Managing rentals is a part time job, at best, and, at worst, a full time pain in the rear. That ...
by redhounds
Fri Aug 30, 2013 1:18 pm
Forum: Personal Investments
Topic: A real risk to slice-and-dice investing (that I missed)
Replies: 22
Views: 2696

Re: A real risk to slice-and-dice investing (that I missed)

A couple thoughts/questions: 1. Can you exchange your other accounts enough to keep your desired allocation? It's not really eating a loss if you keep the same portfolio-wide allocation. 2. Does her 403(b) account allow her to withdraw her balance while still working? It would have to be rolled over...