Search found 145 matches

by RandyAdams1978
Mon Feb 17, 2014 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Form 8606 and TaxAct is stumping me
Replies: 2
Views: 690

Re: Form 8606 and TaxAct is stumping me

Thanks. I think I'm good now.
by RandyAdams1978
Mon Feb 17, 2014 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Form 8606 and TaxAct is stumping me
Replies: 2
Views: 690

Form 8606 and TaxAct is stumping me

I think I understand the concept here, but trying to muscle through the particulars is proving... frustrating. Can someone please straighten me out? How should my Form 8606 look when all is said and done? Here's my transaction history. I hope I didn't do anything wrong/illegal: Roth balance as of 12/31/2012: $10,680.37 1/07/2013: Contributed $6,000 to Tira (this was for 2012) 1/10/2013: Converted to Roth (value $6,042.63) 2/04/2013: Contributed $6,500 to TIra (this was for 2013) 2/14/2013: Converted to Roth (value $6,628.17) Here's what TaxAct Form 8606 looks like: Line 1: 0 Line 2: 6000 Line 3: 6000 Line 4: 0 Line 5: 6000 Line 6: 0 Line 7:0 Line 8: 12,671 Line 9: 12,671 Line 10: .473522 Line 11: 6,000 Line 12: 0 Line 13: 6,000 Line 14: 0 L...
by RandyAdams1978
Tue Jan 28, 2014 4:00 am
Forum: Personal Investments
Topic: 529 Strategy with reduced contributions going forward
Replies: 11
Views: 1278

Re: 529 Strategy with reduced contributions going forward

You need to quickly educate yourself.
Thanks, Laura. I've spoken with several lawyers already. Believe me, I'm getting an education.
by RandyAdams1978
Mon Jan 27, 2014 4:05 pm
Forum: Personal Investments
Topic: 529 Strategy with reduced contributions going forward
Replies: 11
Views: 1278

Re: 529 Strategy with reduced contributions going forward

Also, why do you plan on using CDs for the first two college educations? I think tapping then 529 right away would make more sense since you don't want money left over in the 529 after the kids graduate. I set up three 529 accounts simply for the state tax benefit. At the time -- prior to divorce proceedings--- I was positive I would get NOTHING in the way of federal aid. So, I set up CD's for Child 1, and a series of bonds for Child 2. They come due roughly when tuition payments are due. There was never any intention on using the 529 money for Child 1 or Child 2. I was going to bump it all to Child 3 at the appropriate time. There wasn't going to be any left over 529 funds. If anything, there might have been some leftover CD or bond money...
by RandyAdams1978
Mon Jan 27, 2014 3:58 pm
Forum: Personal Investments
Topic: 529 Strategy with reduced contributions going forward
Replies: 11
Views: 1278

Re: 529 Strategy with reduced contributions going forward

If it is going to be an amicable divorce presumably the assets that you've mentally bookmarked for kid1/kid2 could be explicitly called out with specific $ set aside.
We could. But, I'm not wealthy enough to provide for two households. I may end up having to dip into those bonds and CDs just to keep above water. It's a big unknown, really. That, and things at work aren't going so swimmingly lately either. The shop I'm at is farming out everything they can. My job could be on the list. Another unknown.
by RandyAdams1978
Mon Jan 27, 2014 11:28 am
Forum: Personal Investments
Topic: 529 Strategy with reduced contributions going forward
Replies: 11
Views: 1278

Re: 529 Strategy with reduced contributions going forward

I think, if we can remain amicable about it, the divorce could just say "leave it as it is" for now. We're trying to avoid actually taking this to trial. That being the case, it's my understanding that the separation agreement can say whatever we want it to say.

The trouble with combining for Kid 3 is ... I'm just not sure how much is going to be left for Kid 1 and Kid 2 now. I gotta think some about that.
by RandyAdams1978
Mon Jan 27, 2014 11:09 am
Forum: Personal Investments
Topic: 529 Strategy with reduced contributions going forward
Replies: 11
Views: 1278

Re: 529 Strategy with reduced contributions going forward

Yeah, the aggressiveness is obviously a personal decision. I'll also have to think about combining them now. I didn't really consider that, thanks. But I think I'll wait until the dust settles on the divorce, first. See where I land financially.

Thanks for the replies.
by RandyAdams1978
Mon Jan 27, 2014 3:59 am
Forum: Personal Investments
Topic: 529 Strategy with reduced contributions going forward
Replies: 11
Views: 1278

529 Strategy with reduced contributions going forward

I'm getting divorced and I was hoping to get some suggestions about existing 529 account asset allocation. Ohio residents. Three minor children. Ages 15, 13 and 8. Each has their own Ohio 529 account, with me as owner. The accounts were only recently opened - Dec 2012. Each account has roughly 8.5K in it now. About 25K total. The original game plan was: 1) Contribute 2K per account per year, to get maximum state tax benefit. 2) I wasn't going to use Kid 1 and Kid 2 account for Kid 1 and Kid 2. Kid 1 and Kid 2 college tuition was to be paid for with CD's and bonds that are still in place. 3) The plan was to move Kid 1 and Kid 2 account money to Kid 3 account at the proper time (I don't know exactly when that was to be, but I have a few years...
by RandyAdams1978
Sun Dec 01, 2013 11:38 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

Thanks guys. I looked at the links and the Wiki. Yeah, I saw the warning sign. Wish my aunt would have asked about this BEFORE she signed.

The " free look" period is 10 days. Its 20 days if you 're getting an annuity to replace an existing one.

I will mention to her about the ODI. Maybe at least file a complaint. Thank you again.
by RandyAdams1978
Sun Dec 01, 2013 9:32 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

That's a good idea BL.

Ya know, this has actually been educational for me. I have never seen an annuity contract before. I read the wiki this morning on Equity - Indexed Annuities, and I can see now why they are strongly not recommended. They are MUCH too complicated.

Thanks to this site, I'm a wee bit smarter now.
by RandyAdams1978
Sun Dec 01, 2013 9:18 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

frugalyype,
I wanted to thank you for your replies, too. Thanks.

And, of course, you too livesoft. Thank you.

And you're right starbux, its not as horrible as I first thought. Thanks for helping to calm me down.
by RandyAdams1978
Sun Dec 01, 2013 9:09 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

cher & sscritic
My aunt and I talked. This won't happen again. Thank you for the responses.
by RandyAdams1978
Sun Dec 01, 2013 9:07 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

livesoft
Delving deeper into the contract, it looks like she can take penalty free withdrawals once a year for up to 10% of the account value. She did not know this detail. She had some vague notion that she could "get to the money" if need be, but she didn't know the details. Unfortunately, that won't take care of her roof.
by RandyAdams1978
Sun Dec 01, 2013 7:57 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

Who are you really angry at?
My aunt. She needs to not do this anymore. She's not senile, just a bit kooky. But financially not too savvy. I need to talk to her about this.


Thanks for letting me air this out. I really appreciate the ears.
by RandyAdams1978
Sun Dec 01, 2013 7:54 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

sscritic:

Thanks. I found this.

http://codes.ohio.gov/oac/3901-6-13

I may pursue. But first I must talk with my aunt. I need to find out what she was and was not told when she bought this.
by RandyAdams1978
Sun Dec 01, 2013 7:48 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

livesoft, that's very generous of you to say about my aunt. But I don't think that was the plan. She is not very savvy financially. But I will ask. Thabks.

Now that I've calmed down, this doesn't look so so horrible. She shouldn't have done it probably, but at least it will pay her SOMETHING in retirement. Hard to say what that will be.

Maybe cancelling and take the 7% hit is better? I hate to see her borrow against her 401k to get her roof fixed.
by RandyAdams1978
Sun Dec 01, 2013 7:42 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

The contract says $10k. She just saved $3k!
Yes, the contract says 10K. However, my aunt says she deposited an additional 3K in it AFTER that. Ouch.

Yes, she can change the Annuitization Date. But I would bet SHE didn't know that.
by RandyAdams1978
Sun Dec 01, 2013 7:36 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

And here's the page with the Annuitization details. Sorry if this is too big. First picture posting.

Image
by RandyAdams1978
Sun Dec 01, 2013 7:34 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

Here's the data page of t he annuity contract.

Image
by RandyAdams1978
Sun Dec 01, 2013 7:11 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

I'll try to post it. Thanks. My feeble understanding of this is that "Yes", she can get her money back minus 7%.
by RandyAdams1978
Sun Dec 01, 2013 7:09 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

Ok. I'm reading more details of the contract. It looks like the 100th birthday commencement date is a default, and can be changed by the contract owner at any time.

Im feeling a bit better now.

Still, my aunt. Geez. I asked her why she bought this, when its going to pay her, and how much her payments will be. "I don't know", "I don't know", "I don't know" were her responses.

Nationwide handles her auto and home insurance. My aunt must've made the mistake of asking her agent there what to do with 13K. It was near the end of the month to boot. The agent probably needed a few more contracts signed to meet her quota
by RandyAdams1978
Sun Dec 01, 2013 6:43 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

I think there's a death benefit associated with this. Her daughter is named as the beneficiary. Maybe the daughter will see some of the money. But the daughter doesn't really need it --- she has a Masters degree in Criminal Justice, has top government clearance, has worked for the FBI, and has a husband in Special Forces.

My poor aunt. She told me she wants to borrow against her 401k to get her roof fixed.

Maybe she can borrow against the annuity instead? Is that even possible? I acknowledge I am a complete annuity dummy.
by RandyAdams1978
Sun Dec 01, 2013 6:19 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

You are right. I am not calm. I also have only a basic understanding of annuities.

But it appears to me that she is not getting fixed income UNTIL she is 100, but rather, fixed income STARTS when she reaches 100. (Or am I misunderstanding what YOU said?)

The contract says the Annuitization Date is in August 2052. In the glossary, it says Annuitization Date is "The date the annuity payments actually commence."

My takeaway from that is payments don't BEGIN until she 's 100 years old.

I would like to know if I understand this correctly. Because it just seems too unreal.
by RandyAdams1978
Sun Dec 01, 2013 6:09 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

Thanks for the link, but I was hoping for a straight yes or no. I think I know what the answer is, but I just can't believe someone would actually SELL her this.

Did she just kiss 13,000 dollars goodbye? Am I understanding correctly?
by RandyAdams1978
Sun Dec 01, 2013 5:55 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

That would be a riot. But am I interpretting this Annuitization Date right? Payments don't start until 2052? Is that right?
by RandyAdams1978
Sun Dec 01, 2013 5:31 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

Re: My aunt blindly bought an annuity. Help!

I think it gets even worse. The Annuitization Date on the contract is August 2052. Does that mean what I think it means --- payments don't even START until she's 100?!?!?!?!?

Can that be right?
by RandyAdams1978
Sun Dec 01, 2013 5:18 am
Forum: Personal Investments
Topic: My aunt blindly bought an annuity. Help!
Replies: 40
Views: 3684

My aunt blindly bought an annuity. Help!

She's 61. Recently divorced. In good health. Good, steady job. Should be able to work as long as she wants. Or needs. I don 't even know how this happened, or why she didn't confer with anyone in the family. Or why she thought this was a good idea. She bought an equity indexed annuity from Nationwide. She put in 13K, which is a pretty good chunk of her available funds. The contract was signed October 31st of this year. She just handed me the annuity contract yesterday and asked me to look it over. From what I can tell, any "Right to Examine" periods have expired. That window was 10 days from the day she signed the contract. Surrender charges start at 7%. She lives in Ohio, if that matters. I can't really understand the details of ...
by RandyAdams1978
Sat Nov 30, 2013 5:31 am
Forum: Investing - Theory, News & General
Topic: Investing (not speculating) in Bitcoin
Replies: 119
Views: 18090

Re: Investing (not speculating) in Bitcoin

Thanks, cb474. I've been doing some googling on it. I still don't get where the physical coins are coming from or even why they exist(novelty item as you suggest?), but that's OK. I don't plan on speculating in them..

I just wonder if Bitcoin will survive. Remember MySpace? It was all the rage until Facebook came along. Google was NOT the first search engine --- there were up to a dozen search engines that were popular before the Big G came along and wiped them all out.

Sometimes being late to the party has advantages. Will someone do Bitcoin even better? I know folks are trying.
by RandyAdams1978
Fri Nov 29, 2013 10:38 am
Forum: Investing - Theory, News & General
Topic: Why is the SS website closed?
Replies: 25
Views: 5123

Re: Why is the SS website closed?

Weird. When I changed my password, then it worked. I'm now in. Funny thing is, when I changed my pw, at first I tried the existing one. The system KNEW that, and told me the new password couldn't be the same as the old password. Maybe you have to change your password every so often? It's been a while (maybe a year or more) since I've logged in there.
by RandyAdams1978
Fri Nov 29, 2013 10:29 am
Forum: Investing - Theory, News & General
Topic: Why is the SS website closed?
Replies: 25
Views: 5123

Re: Why is the SS website closed?

Really? How odd. Maybe I'm using the wrong password? Though you would think that would generate a different message. I'll try again. Thanks.
by RandyAdams1978
Fri Nov 29, 2013 10:01 am
Forum: Investing - Theory, News & General
Topic: Why is the SS website closed?
Replies: 25
Views: 5123

Re: Why is the SS website closed?

Sorry. Should have been more specific. When you try to login it tells you it is closed.
by RandyAdams1978
Fri Nov 29, 2013 9:49 am
Forum: Investing - Theory, News & General
Topic: Why is the SS website closed?
Replies: 25
Views: 5123

Why is the SS website closed?

I can understand brick and mortar offices shutting down on a holiday weekend, but the Social Security website, too? Did someone turn off all the computers Wednesday night? I just don't get WHY they do this.
by RandyAdams1978
Thu Nov 28, 2013 6:39 pm
Forum: Investing - Theory, News & General
Topic: Is this a bad time to buy a bond fund?
Replies: 15
Views: 2570

Re: Is this a bad time to buy a bond fund?

Taylor, I appreciate your chart, but I wonder if there is anything available for some reasonable fascimile of TBM that goes back to 1950 or so. In 1976, interest rates were in the high teens.
In 1950, they were closer to today's levels.

The linked study below suggests that starting yields matter, but they only look at a corporate bond index. I'm wondering how a total bond fund might have performed in a 1950's type environment.

http://welton.com/visual_insight/detail ... rates-rise

Thank you.
by RandyAdams1978
Thu Nov 28, 2013 7:13 am
Forum: Investing - Theory, News & General
Topic: Investing (not speculating) in Bitcoin
Replies: 119
Views: 18090

Re: Investing (not speculating) in Bitcoin

General question on bitcoins. If bitcoin is a digital currency, then how/why do actual physical coins exist? Who mints them? I just looked on ebay, and found physical coins for sale at about 5K each. But there were also - I think - digital only versions (mostly some small %, like. 021), that could be transferred to your online wallet.

I don't get it. Can someone enlighten me please?
by RandyAdams1978
Wed Nov 27, 2013 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance Premiums: Pre-tax or post tax?
Replies: 9
Views: 2085

Re: Health Insurance Premiums: Pre-tax or post tax?

I've done bit of research. Pre-tax payments lowers your gross income. This will affect your SS benefit. By how much, I don't know. Pre-tax payments are also not tax-deductible. This could be important for folks who itemize their medical expenses at tax time.
by RandyAdams1978
Wed Nov 27, 2013 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance Premiums: Pre-tax or post tax?
Replies: 9
Views: 2085

Health Insurance Premiums: Pre-tax or post tax?

My employer is switching insurance carriers again. In the open enrollment forms, one of the very first questions is if I want my premium taken out on pre-tax or a post-tax basis. I have always done it on a pre-tax basis.... mainly because I hear that little mantra in my head, "A tax deferred is a tax avoided". But, now that I've been reading these forums for some time, I'm starting to wonder what the actual math involved is.

What actually needs to be considered when choosing?
by RandyAdams1978
Mon Oct 28, 2013 8:11 pm
Forum: Investing - Theory, News & General
Topic: Shameful Motley Fool Article
Replies: 18
Views: 4947

Re: Shameful Motley Fool Article

Wasn't there also something called "The Dogs of The Dow"?
by RandyAdams1978
Thu Oct 10, 2013 5:00 am
Forum: Personal Investments
Topic: How Do Bogleheads Diversify Fixed Income?
Replies: 48
Views: 6835

Re: How Do Bogleheads Diversify Fixed Income?

To be fair, I think it should be noted that the M* interview was from June 2012. The seekingalpha article from 2010.

These are interesting times for FI investing. The more I read, the more I'm convinced that nobody knows nuthin'. Stay the course? Maybe. Diversify? Certainly!
by RandyAdams1978
Mon Sep 30, 2013 4:27 am
Forum: Personal Investments
Topic: Bond Allocation possibilty w/in 401k?
Replies: 2
Views: 450

Bond Allocation possibilty w/in 401k?

I'm trying to figure out the bond portion of my AA within my 401k. My 401k has about 80-85% of my total retirement funds. It is with Fidelity. I am 14 years away from retirment. I'm 53. Here are the bond funds available in my 401k: Fund Name / Symbol / ER Fidelity Freedom K Income Fund / FFKAX / 0.39% Fidelity Spartan US Bond Index / FXSTX / 0.07% (duration 5.25 yrs - 40% Treas Notes/Bonds / 21% Corp / 30% Mortgage related) Fidelity Intermediate Govt / FSTGX / 0.45% (duration 3.55 yrs, 55% Treasury Notes / 35% Mortgage related) Vanguard TIPS / VIPIX / 0.07% My thought is to allocate 50% to bonds. Of that 50%, devote 40% to FFKAX Mainly because I like what's inside this fund. Here are the main components: Stocks: roughly 23% Domestic Equity ...
by RandyAdams1978
Sat Sep 28, 2013 4:02 pm
Forum: Investing - Theory, News & General
Topic: Interesting read on the future of bonds
Replies: 4
Views: 1050

Re: Interesting read on the future of bonds

Good catch nisiprius. But I found it on the Hussman funds web site. Thanks.
by RandyAdams1978
Sat Sep 28, 2013 3:13 pm
Forum: Investing - Theory, News & General
Topic: Interesting read on the future of bonds
Replies: 4
Views: 1050

Interesting read on the future of bonds

Before I posted this, I did a forum search for "Hussman". Guess he's not too well respected here. Still, I found this interesting.
It questions whether bonds will be able to "do their job" in the next equity bear market.

http://www.hussmanfunds.com/rsi/policyportfolio.htm
by RandyAdams1978
Mon Sep 23, 2013 6:01 am
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

Re: How much risk do I NEED to take?

Let's try this again

All in today's dollars. Retirement is 14 years away.

Income need = $60,000
SS (from last statement) = $2,533/month, which equals $30,396 per year
Pension (from last statement = $2,656/month = $31,872 per year.

Bobcat suggested I deflate the pension, rather than inflate the other values. If I deflate the pension to account for 3% inflation, then I get (31,872 * .97) = 30,916. But that's just one year's worth of deflating. Do I need to do that 14 times? If I do that 14 times, it comes down to $21,451. That leaves me with about a 8-9K shortfall in year one of retirement.

Is THAT how I should be figuring it?
by RandyAdams1978
Mon Sep 23, 2013 5:37 am
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

Re: How much risk do I NEED to take?

Red
I 'm not sure what I did there. I fat fingered something. All figures are in today's dollars. I was attempting to deflate the pension as opposed to inflating the other values. Should be $29484. $30396*.97. I was trying to account for 3% inflation. But... do I need to do that 14 times since retirement is 14 years away?
by RandyAdams1978
Sat Sep 21, 2013 2:29 pm
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

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 here. Why doesn't work out the same mathematically?
by RandyAdams1978
Sat Sep 21, 2013 6:20 am
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

Re: How much risk do I NEED to take?

Good morning. I appreciate all the feedback. You folks are incredible. bobcat: Yes, I need to investigate pension options. I know there's a fairly significant penalty for tapping into the pension prior to turning 65. I believe the reduction is 6% per year. Not sure if there's a benefit to delaying. I will ask. I own my house, and have about 25K left on mortgage. It will be paid off by retirement. Or, at least, that's the plan. I also have college money set aside for three children: Earmarked for Child 1 (HS class of 2017): $100K in CD's Earmarked for Child 2 (HS class of 2019): $100K in munis Earmarked for Child 3 (HS class of 2023): 529 accounts in all 3 kids names; contributing only up to tax benefit amount, which is $2K per year per chil...
by RandyAdams1978
Fri Sep 20, 2013 4:34 am
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

Re: How much risk do I NEED to take?

Thanks to all who have responded. Here's the actual numbers: If I retire at 67: SS statement says I'm entitled to $2,533 per month if I retire at age 67. That's $30,396 per year. But's that's in today's dollars, right? That gets indexed for inflation, yes? At a 3% inflation rate, that comes out to about 46K a year starting in 2028. At 4% inflation, that equates to 52K per annum. Pension is $3,200 a month, not indexed to inflation. But that's just for me alone. If I take the spousal option, which is highly probable, that reduces that number to about $2,650 per month, or about $32,000 per year. I estimate my spending needs at $60,000 per year, in today's dollars. At 3% inflation, I'll need about 91K per year, starting in 2028. At 4% inflation...
by RandyAdams1978
Thu Sep 19, 2013 11:16 am
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

Re: How much risk do I NEED to take?

Bobcat: "and from 2003 to 2012 I ploughed the monthly returns and we saw swings of -17 per cent and +15 per cent, on a risk-free asset."

I don't understand what this means. What is "ploughed"?

livesoft:

What you laid out seems reasonable, but I wish that table went back farther for bonds. Although, now that I think of it, the 70's were rising interest rates, right? The great bond bull market didn't start until around 1980, I believe.
by RandyAdams1978
Thu Sep 19, 2013 7:38 am
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

Re: How much risk do I NEED to take?

bobcat: I will have to read (and digest) later. The 1M was the midway point between 800K and 1.2M -- which is the range I've calculated as needing. you're 70K example is nearly spot on to what I've been playing with. I've been targeting 60K in today's dollars.

I also have a pension (not indexed for inflation). It will pay about 30K/yr.

SS is going to be about 35K/yr

At 60K per yer in today's dollars, I'm likely going to need 100K or more starting 2028.

I'll have to double-check these numbers when I get home -- I'm at work now.

Thanks!
by RandyAdams1978
Thu Sep 19, 2013 7:19 am
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

Re: How much risk do I NEED to take?

Bustoff: I didn't do anything in 2008. But that was more like a deer in the headlights reaction than anything else.
by RandyAdams1978
Thu Sep 19, 2013 7:18 am
Forum: Personal Investments
Topic: How much risk do I NEED to take?
Replies: 51
Views: 6227

Re: How much risk do I NEED to take?

Wizard: My current AA is about 50/50. I'm giving myself until the end of this calendar year to come up with a plan going forward. Thanks. livesoft: I have a copy of that book in my nightstand. As I recall, the pages devoted to risk need talk mostly about "stop playing the game if you've already won". I'll have to re-read it, but I don't recall specifics being there on how to assess one's need to take risk. And maybe I'm being unreasonable, but I'm hoping to translate some risk need figure into an appropriate AA. All: you are right on the inflation point. That is completely missing from my calculations. Back to the drawing board .... More info... my calculations on how much I need when I retirement fall in between the 800K mark and...