Search found 4331 matches

by Peter Foley
Sat Jun 16, 2018 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 435
Views: 97603

Re: Anyone regret paying off mortgage early?

No regrets. At the time we paid off the mortgage CD rates were in the 4% to 5% range and our mortgage was about 8%. Our long term plan was to pay off the mortgage before our youngest (2nd) daughter entered college. We were a year or so ahead of that schedule.
by Peter Foley
Sat Jun 16, 2018 10:35 pm
Forum: Personal Consumer Issues
Topic: What are your hobbies?
Replies: 55
Views: 3723

Re: What are your hobbies?

Grandchildren Guitar Bike repair (regular volunteer for a couple organizations) Biking and running Romance Languages (Spanish, Portuguese, Italian and French) Boglehead's Steering Committee (Minnesota) Genealogy Fishing (We have a lake cabin and I admit I do more handyman maintenance work than fishi...
by Peter Foley
Sat Jun 16, 2018 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Wanting to learn: seeking approval or criticism on my portfolio
Replies: 12
Views: 1120

Re: Wanting to learn: seeking approval or criticism on my portfolio

Some people consider a pension as a bond equivalent. This means you have more ability to take risk and can have a more aggressive AA. I have a pension and took that approach early on. Upon reflection, I don't think it was a good approach.
by Peter Foley
Sat Jun 16, 2018 6:40 pm
Forum: Investing - Theory, News & General
Topic: Mean Reversion in Long-Term Stock Returns?
Replies: 25
Views: 1821

Re: Mean Reversion in Long-Term Stock Returns?

SimpleGift Thanks for posting the charts. They are helpful. My concern regarding the use of long time spans for comparison purposes is that we have experienced a fair amount of technological advancement and globalization over the past 50 years. I don't mean to say that "this time is different" in th...
by Peter Foley
Sat Jun 16, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: Mean Reversion in Long-Term Stock Returns?
Replies: 25
Views: 1821

Re: Mean Reversion in Long-Term Stock Returns?

Personal opinion with no data to back this up. Returns of stock markets prior to electricity and phones being widespread is probably irrelevant. I would suggest as well that returns prior to the creation of mutual funds and broad based stock holdings by the general populace are also not very indicat...
by Peter Foley
Fri Jun 15, 2018 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: portfolio checkup - move more money to Roth?
Replies: 10
Views: 870

Re: portfolio checkup - move more money to Roth?

Just a couple comments. If your wife is planning on returning to work outside the home I would consider moving money to a Roth now. On the other hand, if you both intend to retire early and have a few low income years, you should delay until then. With regard to your asset allocation and investments...
by Peter Foley
Thu Jun 14, 2018 11:06 pm
Forum: Personal Consumer Issues
Topic: Trade-up my $89 Walmart bike
Replies: 44
Views: 2528

Re: Trade-up my $89 Walmart bike

I work as a volunteer bike mechanic in a shop and for an organization that fixes bikes to give to kids (FB4Kz). I work on 400 to 500 adult bikes per year. The quality and the ride that you get with a Trek, Specialized, Diamondback, Giant or Novara (REI) are all worth the extra money. The components ...
by Peter Foley
Wed Jun 13, 2018 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2322

Re: converting some traditional IRA to Roth

retiredjg wrote: First, I'll just say that I'm all for tax-deferral. However, I've come to believe there can be too much unless one has a plan to handle it. A very large tax-deferred account will start coming home to roost at age 70.5 when RMDs start. The larger the account, the higher the RMDs. Thi...
by Peter Foley
Tue Jun 12, 2018 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning- Trusts
Replies: 4
Views: 619

Re: Estate Planning- Trusts

I wish I understood this better as it is a question we Minnesotan's ask as well. We too have a spousal exemption, an estate tax exclusion that is significantly lower than the federal (headed to 3M in 2020 if memory serves me correctly) and no state portability. For those couples with assets only sli...
by Peter Foley
Mon Jun 11, 2018 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Large inheritance -- looking for advice
Replies: 56
Views: 6485

Re: Large inheritance -- looking for advice

My condolences.

With your level of assets Schwab offers very low cost, if not free, investment advice. I'm not talking about them managing your money just providing advice. If you start the conversation with "I want to invest in low cost diversified mutual funds" you should get a reasonable answer.
by Peter Foley
Mon Jun 11, 2018 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2322

Re: converting some traditional IRA to Roth

Tenkuky wrote: Peter Foley wrote: ↑Mon Jun 11, 2018 2:21 pm Unrelated to the above: with the risk of high medical expenses some year(s) in retirement, it is not a bad idea to retain some tax deferred funds. Such funds could potentially be withdrawn tax free in a year with high medical expenses. Inco...
by Peter Foley
Mon Jun 11, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on asset allocation and strategy
Replies: 5
Views: 417

Re: Advice on asset allocation and strategy

I will offer some personal opinion, not necessarily the guidance/rules of thumb I have read here and elsewhere over time: You are doing well with savings and I agree that 6 months of emergency funds is a good goal. 90/10 is okay, but I would prefer 80/20. I would be more comfortable with a 90/10 if ...
by Peter Foley
Mon Jun 11, 2018 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Which way to save for my child?
Replies: 32
Views: 1797

Re: Which way to save for my child?

I would be inclined to put at least some money in a 529 plan. My reasoning is that you may have more than 1 child and someone is likely to pursue post secondary education. Also there was a law change this year that allowed for 529 plan money to be used for private school tuition (primary and seconda...
by Peter Foley
Mon Jun 11, 2018 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2322

Re: converting some traditional IRA to Roth

I won't challenge any of the math because I really can't tell what you are trying to do. Case #1: You are in the 12% tax bracket and intend to convert up to the 22% bracket. You intend to work until age 67 and then start drawing SS benefits and tax deferred savings. (In other words you are not plann...
by Peter Foley
Sat Jun 09, 2018 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Wanting to learn: seeking approval or criticism on my portfolio
Replies: 12
Views: 1120

Re: Wanting to learn: seeking approval or criticism on my portfolio

I'm a believer of the advice to never have more than 75% in stocks and never have less than 25% in stocks. While there certainly are circumstances that warrant exceptions, this is a good general guide for accumulators. Accordingly I would reduce the small cap allocation and overlap with extended mar...
by Peter Foley
Fri Jun 08, 2018 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: "Open Social Security" calculator: feature requests, bug reports, etc
Replies: 63
Views: 4409

Re: "Open Social Security" calculator: feature requests, bug reports, etc

I had not looked at the advanced options. You have it covered. What would be interesting to note relates to the longevity tables, not your calculator. I think you stated that nonsmoker preferred added about 3 years. I could look it up and find out how many years super preferred added. This info coul...
by Peter Foley
Fri Jun 08, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: "Open Social Security" calculator: feature requests, bug reports, etc
Replies: 63
Views: 4409

Re: "Open Social Security" calculator: feature requests, bug reports, etc

I did not see the following in your list of enhancements. If you think it would be easier to do than a "when I die" option I would be happy if you just had a "CSO Nonsmoker Preferred Table" option. Using that table would give the user insight as to how greater longevity would affect the when to star...
by Peter Foley
Thu Jun 07, 2018 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: New SS claiming calculator ["Open Social Security" - ObliviousInvestor]
Replies: 65
Views: 5024

Re: New SS claiming calculator

First of all Mike, thanks for doing this. You certainly have a lot on your plate with all of the suggestions. Fact of the matter is, we do not know when we are going to die. A second fact relative to my upcoming comment is that I know nothing about building a calculator so feel free to ignore the fo...
by Peter Foley
Wed Jun 06, 2018 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Strategy at 55
Replies: 16
Views: 2895

Re: Investment Strategy at 55

Iceberg6328 The difference between the mortgage payoff and the brokerage account is risk. If I were looking at a 10 year strategy I would not put the entire amount at risk in the market. My alternative is about the equivalent of a 50/50 asset allocation. That would not be inappropriate for a 55 year...
by Peter Foley
Wed Jun 06, 2018 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Strategy at 55
Replies: 16
Views: 2895

Re: Investment Strategy at 55

A goal and an alternative: I think a good goal for many retired people is to have their mortgage paid off when they retire. A paid off mortgage offers a bit of diversification and is not unlike a bond - although it is much less liquid. An alternative, therefore, is to use a portion of her cash to pa...
by Peter Foley
Wed Jun 06, 2018 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: New SS claiming calculator ["Open Social Security" - ObliviousInvestor]
Replies: 65
Views: 5024

Re: New SS claiming calculator

Interesting calculator. It recommends that my wife file now at age 63 and that I file now for spousal benefits (I'm 5 years older). This has not been my plan. My wife and I are both healthy and both had parents live into their 90's. Our PIAs are almost identical. Any guess as to how this longevity f...
by Peter Foley
Mon Jun 04, 2018 10:41 pm
Forum: Investing - Help with Personal Investments
Topic: Help for consolidating funds for 68 yr old.
Replies: 6
Views: 663

Re: Help for consolidating funds for 68 yr old.

I disagree with student. At our age (yes me too) we should be aiming for simplification. Such simplification also helps with estate planning
by Peter Foley
Mon Jun 04, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Help for consolidating funds for 68 yr old.
Replies: 6
Views: 663

Re: Help for consolidating funds for 68 yr old.

It would be helpful to know a few of the funds you own in your accounts, especially in taxable. You may already hold some funds that many here would find acceptable.

Are you in a tax bracket where you could sell some smaller amounts and not pay capital gains?
by Peter Foley
Mon Jun 04, 2018 4:50 pm
Forum: Investing - Theory, News & General
Topic: Jonathan Clements on demographics and investing
Replies: 8
Views: 2180

Re: Jonathan Clements on demographics and investing

20 - 25 years ago a question I asked a number of economists and demographers (different groups mind you) was their opinion regarding the US stock market when the Baby Boomers started to retire. Would it crash when the early boomers like myself started to pull money out of the market to live on? Both...
by Peter Foley
Wed May 30, 2018 7:32 pm
Forum: Investing - Theory, News & General
Topic: Reflections on my 25 years at Morningstar Inc - Christine Benz
Replies: 3
Views: 1371

Re: Reflections on my 25 years at Morningstar Inc - Christine Benz

Ms. Benz mentions 6 key takeaways. The article is a hand full of short paragraphs with sound investment/financial advice. Well worth the 5-10 minutes it takes to read it.
by Peter Foley
Tue May 29, 2018 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Another Social Security for Widow Question
Replies: 31
Views: 2193

Re: Another Social Security for Widow Question

Epsilon Delta wrote: There are very few cases where forgoing income to save taxes is worthwhile. Tax planning is usually about timing income (usually delaying it) to save taxes. That is not an option here. I agree. There are a few unknowns here. What are the surviving spouse's income needs? What oth...
by Peter Foley
Tue May 29, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Another Social Security for Widow Question
Replies: 31
Views: 2193

Re: Another Social Security for Widow Question

I do not know the answer, so please react to this alternative approach to this situation. I propose this because of a couple statements the OP made. Husband died this year. (Last year for married filing jointly.) Spouse has some large taxable gains that she would like to realize in the next few year...
by Peter Foley
Wed May 23, 2018 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest $1.4 million inheritance?
Replies: 32
Views: 4363

Re: How to invest $1.4 million inheritance?

In the eyes of most people you have won the game. You are retired and have substantial assets. I would take the conservative approach and dollar cost average.
by Peter Foley
Wed May 23, 2018 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Need advice for 66 year old new investor
Replies: 4
Views: 582

Re: Need advice for 66 year old new investor

If this is all she has, any approach should be exceedingly conservative. The amount mentioned does not even constitute a reasonable emergency fund.

Ally Bank no penalty CD perhaps?
by Peter Foley
Tue May 22, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living tax deduction as medical expense
Replies: 23
Views: 1928

Re: Assisted Living tax deduction as medical expense

Katietsu wrote: Please be careful. Many tax preparers do not distinguish between the different documentation required for assisted living vs skilled nursing care etc. For assisted living, it might be that only a third of the cost is identified as a medical expense. Point well taken. One of the keys ...
by Peter Foley
Mon May 21, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living tax deduction as medical expense
Replies: 23
Views: 1928

Re: Assisted Living tax deduction as medical expense

My wife gets a monthly statement of expenses (bill) from her mother's assisted living provider. We provided those 12 statements to the person that prepares my mother in law's taxes. As expected, medical expenses exceeded income.
by Peter Foley
Sat May 19, 2018 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: When I retire, what do I sell?
Replies: 11
Views: 2415

Re: When I retire, what do I sell?

articpinapple wrote: Just make sure you have enough in bonds to draw from in the case of a prolonged bear market. This is why for many somewhere between 30-50% in stocks is recommended in retirement. The target date retirement fund with Vanguard has you at around 50% in stocks when you reach the tar...
by Peter Foley
Fri May 18, 2018 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living tax deduction as medical expense
Replies: 23
Views: 1928

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 . . . . Nursing...
by Peter Foley
Fri May 18, 2018 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: Tax related questions
Replies: 17
Views: 1447

Re: Tax related questions

Regarding RMD's: For most individuals RMD's start at a little over 3.6% and increase a bit every year. For me, that's overly precise and hard to remember so when talking about RMD's I just try to keep in mind that they average about 4% over the first 5 years of retirement. That is close enough for p...
by Peter Foley
Mon May 14, 2018 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Small gift from Grandma to infant - where to put it?
Replies: 21
Views: 2006

Re: Small gift from Grandma to infant - where to put it?

I believe Charles Schwab offers account minimums of $1000.00.
by Peter Foley
Mon May 14, 2018 7:29 pm
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 140
Views: 11532

Re: The front page is ugly

I like the front page as it is.

If you don't like the front page, bookmark the Wiki and start your navigation there. Or, like bertalic use the forum index page and start there.

I think there are good options without any redesign.
by Peter Foley
Fri May 11, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Paying Roth conversion taxes with IRA funds
Replies: 7
Views: 674

Re: Paying Roth conversion taxes with IRA funds

The ideal is to pay for conversions with taxable account. You situation may be such that you can come out ahead paying with pre-tax. In the scenarios I've run on i-orp and the Retiree Portfolio Model, conversions early in retirement make more sense than those close to age 70. At age 60, my guess is ...
by Peter Foley
Thu May 10, 2018 11:00 pm
Forum: Personal Consumer Issues
Topic: Which City to spend 4-6 weeks?
Replies: 47
Views: 4620

Re: Which City to spend 4-6 weeks?

I've lived in Madrid and have spent a fair amount of time in Paris. I admit I know Spain better. I think there are a lot of day trips from Madrid using public transportation. Perhaps fewer significant day trips from Paris? IMHO Paris proper has more going for it than Madrid. Madrid can get quite hot...
by Peter Foley
Thu May 10, 2018 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Gifting ETFs down the road - Advice Requested
Replies: 5
Views: 268

Re: Gifting ETFs down the road - Advice Requested

In the context you mention there is no problem with gifting shares of stocks, mutual funds, ETFs. Just be mindful that the recipient assumes your cost basis.
by Peter Foley
Wed May 09, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Why are stock returns expected to be so low over the next decade?
Replies: 27
Views: 4613

Re: Why are stock returns expected to be so low over the next decade?

Relatively high valuations. See CAPE Ratio, CAPE Median or Robert Shiller as topics.

Also see historical and expected returns on the Wiki.
by Peter Foley
Mon May 07, 2018 7:29 pm
Forum: Personal Consumer Issues
Topic: New car for my wife
Replies: 25
Views: 2733

Re: New car for my wife

Most Subaru models would fit the bill. We live in Minnesota and the Nissan Rogue has served us well for the past 4 years.
by Peter Foley
Mon May 07, 2018 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does it make ANY sense for a US citizen to stash emergency funds overseas?
Replies: 62
Views: 4769

Re: Does it make ANY sense for a US citizen to stash emergency funds overseas?

No. Daftinvestor presented the alternative that came to mind to me. Hold some small denomination gold coins or silver. I wouldn't hold it anywhere except the US, however. If you need emergency assets you would not want to have to travel to get to a foreign country to get them.
by Peter Foley
Sun May 06, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 168
Views: 17354

Re: What Percentage CASH are you?

About 3.5%. 2.5% is in taxable and will be spent this year. Near the end of the year we will move 1% from a TIRA to taxable or Roth to top off the 12% bracket. RMDs are 3 years out. Our withdrawal rate is between 2% and 2.5% per year. We have an additional 4+% in early 21st century I-Bonds. But with...
by Peter Foley
Sat May 05, 2018 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software
Replies: 17
Views: 1194

Re: Tax software

earlyout wrote: Something else to consider in deciding on a conversion is that without a Roth conversion it appears non of your SS will be taxed. If you convert to the top of the 12% bracket 85% of your SS will be taxed, thus increasing the cost of the conversion. This might argue for an every other...
by Peter Foley
Thu May 03, 2018 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: How old is too old for a vehicle, even for a well running one ?
Replies: 83
Views: 5059

Re: How old is too old for a vehicle, even for a well running one ?

I think there are a number of factors. I believe age to be more of an issue in certain climates. Mileage and regular maintenance are more important to me.
by Peter Foley
Wed May 02, 2018 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall advice for an overwhelmed person
Replies: 76
Views: 5990

Re: Windfall advice for an overwhelmed person

Something just doesn't seem right here. You have $225k in capital gains taxes. Is this what created the windfall? The highest long term capital gains rate is 20% and that would just be on amounts over $500,000. What is the relationship between the $1M in pre tax money and the taxes owed? Do you want...
by Peter Foley
Tue May 01, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Max out our 457 or 401k
Replies: 4
Views: 554

Re: Max out our 457 or 401k

If one is planning to retire early, say age 50 - 55, I think having penalty free withdrawals is worth the price of somewhat higher expense ratios. Someone can probably do the math, but with two individuals working you are probably at least in the 22% bracket. With early retirement you would likely b...
by Peter Foley
Mon Apr 30, 2018 11:01 pm
Forum: Personal Consumer Issues
Topic: Bicycle Questions
Replies: 44
Views: 2433

Re: Bicycle Questions

OP asked: Can anyone, briefly, describe the specific ways in which a new $350-450 bike shop bike is likely superior to a $125-150 Wal-Mart bike? Backgound - I've been working in a bike shop since I retired 6 years ago. The shop I work in fixes used bikes to give away to people in need of bikes. I fi...
by Peter Foley
Mon Apr 30, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Would Roth Conversions be worthwhile for me?
Replies: 18
Views: 1718

Re: Would Roth Conversions be worthwhile for me?

A couple of the calculators commonly used are i-orp and the Retiree Model Portfolio. I find the RPM to be a bit better for Roth conversion scenarios.
by Peter Foley
Mon Apr 30, 2018 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 15621

Re: How do you know when you have "won the game"?

When your bond allocation is sufficient to cover 30 years of retirement.