Search found 3544 matches

by Ron Ronnerson
Mon Mar 18, 2024 8:50 pm
Forum: Investing - Theory, News & General
Topic: Quantify the Value of Military Retirement - Methodology Questions
Replies: 113
Views: 9698

Re: Quantify the Value of Military Retirement - Methodology Questions

This is the most recent one that I've seen mentioned (from https://www.bogleheads.org/forum/viewtopic.php?p=7757900#p7757900): ...I’m a public-school teacher... expecting a $110k/year pension in another decade or so - enough to cover all our expenses. So......one example which cannot be corroborated and frankly which I very seriously doubt. Teachers (even in California, which is the example you posted and an extreme example on the high side) don't generally even make that in regular pay, and pensions don't pay more than the person made in regular salary. I haven't logged on here for a little while so just saw this. I work in the Bay Area for a school district which doesn't pay for health benefits to its employees. Instead, we have relative...
by Ron Ronnerson
Mon Mar 18, 2024 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Pension and 403b contribution limit
Replies: 8
Views: 473

Re: Pension and 403b contribution limit

sierrabp wrote: Mon Mar 18, 2024 2:57 pm
terran wrote: Mon Mar 18, 2024 2:28 pm Yeah, that really doesn't sound right. I'd be talking to HR about a corrected W2. I think I pension is sometimes called a 401(a) plan, I wonder if someone got confused.
It sounds like 401(a) is correct! This is what the customer service for the pension plan just told me. In which case as far as I can tell there is not a code for 401(a) in box 12, but possibly goes in box 14?
I'm a California teacher. My mandatory pension contributions are labeled "Retirement" and appear in box 14. My union dues are also in box 14. My 403b contributions are in box 12a and 457b contributions are in 12b.
by Ron Ronnerson
Sat Mar 09, 2024 1:41 pm
Forum: Personal Consumer Issues
Topic: Is Calif Really That Expensive - Or Am I Missing Something?
Replies: 133
Views: 15487

Re: Is Calif Really That Expensive - Or Am I Missing Something?

This is a personal decision, of course, but the Bay Area has been very kind to us so I'll share a bit about our experience. I moved here from another state (one where the cost of living is much lower) years ago. I met my wife out here and we bought a home in a nice neighborhood for $500k with a $15k down payment in 2010. At the time, we had a combined income of $110k and a net worth of $80k. Payments over time going toward principal plus appreciation over the past 14 years have resulted in $1m in home equity. Our mortgage payment is small, despite restarting the 30-year term on the loan 3 times and taking out $150k in home equity when we last refinanced. I’m a public-school teacher and my spouse is a stay-at-home parent (likely already reti...
by Ron Ronnerson
Wed Mar 06, 2024 8:38 am
Forum: Personal Finance (Not Investing)
Topic: When have you stopped saving for retirement?
Replies: 40
Views: 3889

Re: When have you stopped saving for retirement?

I reduced retirement savings for a couple of years after buying a house to replenish cash used toward the down payment and to pay for closing costs. My spouse and I continued to max our Roth IRAs and I also still made mandatory contributions toward a pension. This was about 15 years back. In hindsight, it was a good move. Our mortgage payment is relatively small and that has allowed us to increase saving for retirement over time. The house has appreciated significantly as well since we bought it (we’re in the Bay Area).
by Ron Ronnerson
Sat Mar 02, 2024 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Does healthcare remain a significant concern for retirement before 65, even with a well-planned budget?
Replies: 66
Views: 6329

Re: Even with a well-planned budget, does healthcare remain a significant concern for retirement before 65?

Someone in my family was forced out of his job at 62. I found out recently that he was paying out of pocket for health services for himself and his wife because they couldn't afford the premiums. He just turned 65 and now is on Medicare but his wife is younger. I offered to pay her premiums until she can get Medicare, but I haven't heard anything more about it. These are regular-type people and not Bogleheads. Regular type people should be able to afford medical insurance through the ACA. If their income is above 400% of FPL, then I think this year their premiums are capped at 8.5% of MAGI. So it might be the case that they chose to not have, and took the risk that was the. OST sensible choice for them. I keep reading about how affordable ...
by Ron Ronnerson
Thu Feb 29, 2024 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Do your intra-company yearly raises keep with inflation?
Replies: 60
Views: 6050

Re: Do your intra-company yearly raises keep with inflation?

I’m at a school instead of company but have worked at the same place for the past 20 years. My salary was $53k in 2004 and $136k in 2023 (19 years later). The average raise has been 5.1% during that time. During the last three years, my raises have been 6.4%, 6%, and 9.4%. There is a teacher shortage around my neck of the woods.
by Ron Ronnerson
Tue Feb 27, 2024 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: When did your Net Worth surpass your lifetime earnings?
Replies: 93
Views: 11639

Re: When did your Net Worth surpass your lifetime earnings?

20 working years and not there yet. At about 70%. Maybe one day. Living in a VHCOL area probably doesn’t help. I posted earlier in this thread. I'm 49 years old and my lifetime earnings are currently equal to net worth (both at $1.9m). I’m a teacher in a VHCOL area (Bay Area) and my spouse is a stay-at-home parent. When it comes to this metric, being in a VHCOL area has actually come in handy. I get paid $140k to teach elementary school around here but can live on substantially less than that. I bought a 4-bedroom/4-bathroom house with a $15k down payment in 2010. Since that time, I have refinanced 3 times (restarting the 30-year term each time) and taken $150k in equity out of the house. I owe almost as much today as I did when I purchase...
by Ron Ronnerson
Mon Feb 26, 2024 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: When did your Net Worth surpass your lifetime earnings?
Replies: 93
Views: 11639

Re: When did your Net Worth surpass your lifetime earnings?

Funny you should ask as my numbers for lifetime earnings and net worth are both right around $1.9m at this moment. I’m 49 years old and have been a public-school teacher for the last 20 years. I had a negative net worth until I was 32 but then decided to get my act together. Since that time, a good savings rate along with luck and leverage have been factors in improving the trajectory. On a side note, my retirement should be fully covered by a pension ($110k/year with cost-of-living adjustments) - an important detail in the big picture that net worth doesn’t include.
by Ron Ronnerson
Thu Feb 22, 2024 8:53 am
Forum: Personal Finance (Not Investing)
Topic: FIRE vs Loving your work
Replies: 101
Views: 8362

Re: FIRE vs Loving your work

I’m a teacher and would not retire at this stage even if I won a jackpot. Going to work is generally enjoyable and fulfilling for me even though there are some challenging times. The schedule helps as I have 14 weeks off per year.
by Ron Ronnerson
Sun Feb 18, 2024 9:38 am
Forum: Personal Consumer Issues
Topic: Recommendations for Vehicle with One Young Child
Replies: 25
Views: 1597

Re: Recommendations for Vehicle with One Young Child

I have one child as well and got a Toyota Corolla shortly after she was born. That was about 10 years ago and the car has worked well for our needs. I have 115k miles on it and the car has some scratches on the side but I plan to keep it for a while longer. It’s really about priorities as money is limited. A dollar spent on the car is a dollar not available for the kid’s college fund or for retirement. Postponing of retirement often means more time spent commuting. The risk resulting from that needs to be subtracted from the increased safety of a new vehicle’s features. I don’t know how to accurately run such a calculation but do think it’s important to not ignore this as part of the consideration. All that being said, if you want a new car...
by Ron Ronnerson
Sat Feb 10, 2024 7:18 pm
Forum: Personal Consumer Issues
Topic: What Size TV for Master Bedroom?
Replies: 57
Views: 6843

Re: What Size TV for Master Bedroom?

It took me 14 months since I first started this thread but I finally got a TV for the bedroom. We ended up going with a 65" Samsung TV (model: UN65CU7000BXZA) purchased through Walmart. It cost $398 and mounting was $79. The total came to $518 but I used a credit card offering 5% back so it was actually $492 for the TV plus installation. I used an old mount that I already had around the house and spent about $30 on an HDMI switch and some HDMI cords. I had to play with the advanced settings on the TV to get it to look the way that I like it. My eyes are even worse than they were when I first posted so I'm glad that I went with a larger size. I watch a lot of tennis and the ball looks big and clear on the 65" tv. Walmart sent a loc...
by Ron Ronnerson
Sat Feb 10, 2024 6:43 pm
Forum: Personal Consumer Issues
Topic: Smoke Detectors
Replies: 56
Views: 6237

Re: Smoke Detectors

Just a quick update. We ended up getting the First Alert 9120LBL hardwired smoke detectors with 10-year lithium backup batteries and they are finally installed. So far, so good.
by Ron Ronnerson
Tue Feb 06, 2024 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Accumulators, what's your response to inflation?
Replies: 146
Views: 12838

Re: Accumulators, what's your response to inflation?

I’ll provide a data point. I’m a public school teacher in the Bay Area and my wife is a stay-at-home parent; both of us are 49 years old. Five years ago, I earned a salary of $103,200. By 2023, it had increased by 35%, to $139,200. Meanwhile, inflation over this time period has been roughly around 20% according to the U.S. Bureau of Labor Statistics calculator. We purchased our home in 2010 for $500k. The payment on our home (which is currently valued around $1.2m) is $1900 per month. Our property taxes have increased from $9k in 2010 to $10k now due to Prop 13 in California limiting the increases. The mortgage payment and property taxes are our two biggest expenses and basically sheltered from inflation. Our life insurance premiums are fi...
by Ron Ronnerson
Tue Feb 06, 2024 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Accumulators, what's your response to inflation?
Replies: 146
Views: 12838

Re: Accumulators, what's your response to inflation?

On a side note, I think a much bigger factor than inflation that has helped us is geo-arbitrage, but not in the way most people tend to think. They pay me $140k to teach elementary school in the Bay Area and I’m expecting a six-figure pension as well. This is considerably more than what teachers make in most other areas. By keeping expenses at bay (which is often possible in VHCOL areas by making certain deliberate consumption choices), we can pocket much of the higher income. In any case, it has worked out fairly well for us so far. Do you think your course of action would work out as well starting today in your location? I am not familiar with the specifics in the changes in teacher compensation, but I would be very surprised if a younge...
by Ron Ronnerson
Mon Feb 05, 2024 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Accumulators, what's your response to inflation?
Replies: 146
Views: 12838

Re: Accumulators, what's your response to inflation?

I’ll provide a data point. I’m a public school teacher in the Bay Area and my wife is a stay-at-home parent; both of us are 49 years old. Five years ago, I earned a salary of $103,200. By 2023, it had increased by 35%, to $139,200. Meanwhile, inflation over this time period has been roughly around 20% according to the U.S. Bureau of Labor Statistics calculator. We purchased our home in 2010 for $500k. The payment on our home (which is currently valued around $1.2m) is $1900 per month. Our property taxes have increased from $9k in 2010 to $10k now due to Prop 13 in California limiting the increases. The mortgage payment and property taxes are our two biggest expenses and basically sheltered from inflation. Our life insurance premiums are fix...
by Ron Ronnerson
Sun Feb 04, 2024 6:34 pm
Forum: Personal Investments
Topic: CalSTRS Pension2, CTA 403 or Vanguard 403B ... [Question about fees]
Replies: 3
Views: 386

Re: CalSTRS Pension2, CTA 403 or Vanguard 403B ... [Question about fees]

I believe that the employer has the option to cover the fees on your behalf if they so choose (my employer doesn’t cover them and I have to pay the fees myself). Vanguard charges $5/month for an account maintenance fee and CalSTRS Pension 2 charges a 0.25% administrative fee (which is basically like an additional expense ratio on top of what you pay for the funds themselves). For smaller balances, CalSTRS Pension 2 is better in terms of cost. The opposite is true when your balances are higher. The expense ratios that CalSTRS Pension 2 offers are fantastic (0.02% for Vanguard Total U.S. Stock Market Fund, for instance) but when you include that 0.25% admin fee, Vanguard wins once your balance is big enough to compensate for the $5 monthly fe...
by Ron Ronnerson
Sat Feb 03, 2024 10:33 pm
Forum: Personal Consumer Issues
Topic: Best towns with great schools, weather, outdoor activities
Replies: 74
Views: 6937

Re: Best towns with great schools, weather, outdoor activities

:happy Between your first comment and this comment, I'd look hard at San Luis Obispo and the "5 Cities" area just south of it. Pismo Beach, etc. Less than 7 miles from the ocean, cooler weather than San Diego. Only highway 101 for "traffic". Smaller city vibe. Full disclosure. I am biased, but have lots of experience. Lived in Ventura County, raised and currently live in San Diego county, went to CS SLO. If I were to retire in California (not going to, relocating to Mecklenberg County/Charlotte), it would be #1 SLO, #2 San Diego county (north coastal). San Clemente, Dana Point could be an option (corridor between San Diego and LA). +1 If we (LA and SF natives) were absolutely forced to move back to California (we'd have...
by Ron Ronnerson
Sat Feb 03, 2024 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: What percentage of spending normally goes to Taxes?
Replies: 59
Views: 5244

Re: What percentage of spending normally goes to Taxes?

Our projected 2024 numbers: Gross Income: $154k ($16k of this is from interest, the rest from a job) + $2k in gifts (untaxed) Savings: $60k (includes mortgage principal of $12k; the rest is retirement) Spending: $96k, including taxes Taxes: Federal Income Tax: $5k = 5.2% of expenses California Income Tax: $1300 = 1.4% of expenses Property Tax: $10,600 = 11.0% of expenses Estimated Sales Tax: $1500 = 1.6% of expenses FICA: $2k (I don’t pay into social security) = 2.1% of expenses TOTAL TAX: $20.4k; 21.3% of expenses Here are my thoughts on the questions you asked: Circumstances vary for everyone so I’m not sure if there is really a “normal.” This is not a particularly meaningful ratio. For example, as you mention, lowering other expenses re...
by Ron Ronnerson
Sat Feb 03, 2024 12:13 pm
Forum: Personal Consumer Issues
Topic: Best towns with great schools, weather, outdoor activities
Replies: 74
Views: 6937

Re: Best towns with great schools, weather, outdoor activities

:happy Thanks for the recommends. I'll start looking into some of the different recommendations. I do love California (especially Santa Barbara and the rest of the Central Coast). It's been a while since I've been to Northern California but may take a trip there this year. Other than the HCOL what I dislike about a lot of California is the suburban sprawl and traffic. Ideally would like more of a town than suburban feel and will look into some of the smaller areas mentioned. I realize everyplace will have some tradeoffs. For weather, I don't mind humidity. I enjoy good snowstorms as well, just not long winters with highs in the 40s or lower for many months of the year. Between your first comment and this comment, I'd look hard at San Luis ...
by Ron Ronnerson
Wed Jan 31, 2024 11:50 pm
Forum: Personal Consumer Issues
Topic: Best towns with great schools, weather, outdoor activities
Replies: 74
Views: 6937

Re: Best towns with great schools, weather, outdoor activities

I live in the tri-valley (Pleasanton/San Ramon) area of the Bay Area. It’s located inland so summers are fairly warm but winters stay mild (it never snows around here). Schools are highly ranked (8-10 out of 10) and the area is safe (low crime and you don’t see much homelessness around here). There are lots of hiking trails and rolling green hills in the vicinity. Just about everywhere you go has plenty of parking. It’s a great place for families. If you want shopping, Pleasanton has a fairly good mall and nice little downtown area. Walnut Creek has a good outdoor shopping area too and is only about 20 minutes away. Beaches (such as in Half Moon Bay, Capitlo, and Santa Cruz) are 60-75 minutes away. Wineries are very close by with several l...
by Ron Ronnerson
Wed Jan 31, 2024 9:43 pm
Forum: Personal Consumer Issues
Topic: Best towns with great schools, weather, outdoor activities
Replies: 74
Views: 6937

Re: Best towns with great schools, weather, outdoor activities

I live in the tri-valley (Pleasanton/San Ramon) area of the Bay Area. It’s located inland so summers are fairly warm but winters stay mild (it never snows around here). Schools are highly ranked (8-10 out of 10) and the area is safe (low crime and you don’t see much homelessness around here). There are lots of hiking trails and rolling green hills in the vicinity. Just about everywhere you go has plenty of parking. It’s a great place for families. If you want shopping, Pleasanton has a fairly good mall and nice little downtown area. Walnut Creek has a good outdoor shopping area too and is only about 20 minutes away. Beaches (such as in Half Moon Bay, Capitlo, and Santa Cruz) are 60-75 minutes away. Wineries are very close by with several lo...
by Ron Ronnerson
Sun Jan 28, 2024 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: 2023 Obamacare No Income
Replies: 15
Views: 1245

Re: 2023 Obamacare No Income

Thanks Ron. She is in Texas which is not a Medicaid expansion. Does that make any difference as far as having to pay back? From the same site I linked earlier: “What happens when someone living in a state that has not expanded Medicaid receives advance payments of premium tax credits based on an estimate that income would be over the poverty line, but ends up with income below the poverty line? Does he have to pay back all the advance payments he received when he files his taxes? No. There is a special rule (found at 26 CFR 1.36B-2(6) and (7)) that applies in this situation. As long as the marketplace estimated at the time of enrollment that his income would be between 100 and 400 percent of the poverty line and he was otherwise eligible f...
by Ron Ronnerson
Sun Jan 28, 2024 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: 2023 Obamacare No Income
Replies: 15
Views: 1245

Re: 2023 Obamacare No Income

https://www.healthreformbeyondthebasics.org/oldsite/www.healthreformbeyondthebasics.org/question-of-the-day/#:~:text=As%20long%20as%20the%20Marketplace,the%20household%20will%20have%20to “When the income of someone who is receiving premium tax credits falls below the poverty line for the year, would they have to pay back the credits they received? How does reconciliation work in this case? No. The IRS has a special rule that applies in this situation. As long as the Marketplace estimated at the time of enrollment that the household’s income would be between 100 and 400 percent of the poverty line and the household was otherwise eligible for premium tax credits, the fact that the household’s income fell below the poverty line does not mean t...
by Ron Ronnerson
Sat Jan 27, 2024 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: No-state-income-tax states are not good for retirees.
Replies: 413
Views: 39172

Re: No-state-income-tax states are not good for retirees.

[Response to removed content removed - moderator oldcomputerguy] In seriousness, does the typical senior in a so-called "high tax" state such as California or New York even pay much in state income taxes? Most retirees have relatively small incomes and social security is exempt from state income taxes in these places. People generally pay into social security for decades so I'm an advocate for them finally collecting some benefits and partying hard during those golden years. In some states, the party seems to end noticeably sooner compared to other states (in terms of average life expectancy). There seems to be a strong correlation to per capita taxes paid and life expectancy (and thus number of social security checks claimed). I...
by Ron Ronnerson
Sat Jan 27, 2024 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: No-state-income-tax states are not good for retirees.
Replies: 413
Views: 39172

Re: No-state-income-tax states are not good for retirees.

Be careful what you wish for. What is the correlation for high / low tax states to standings in education, medical care, longevity, other quality of life issues? I looked up life-expectancy after seeing your post as I figured that one is easy enough to have some hard data on. According to the CDC, here are some numbers for life expectancy by state in 2019 (I selected a pre-covid year): Bottom 10: Mississippi: 74.4 Tax Rank = 36 West Virginia: 74.5 Tax Rank = 30 Alabama: 75.2 Tax Rank = 41 Kentucky: 75.5 Tax Rank = 33 Tennessee: 75.6 Tax Rank = 38 Arkansas: 75.7 Tax Rank = 19 Louisiana: 75.7 Tax Rank = 42 Oklahoma: 75.7 Tax Rank = 40 South Carolina: 76.8 Tax Rank = 44 Missouri: 76.9 Tax Rank = 45 Top 10: Hawaii: 80.9 Tax Rank = 4 California...
by Ron Ronnerson
Sat Jan 27, 2024 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Net Worth Averages in different professions
Replies: 91
Views: 11547

Re: Net Worth Averages in different professions

LITeacher - I know plenty of millionaire teachers on Long Island and even some that are multi-millionaires. This is especially true of tier 1 retirees that have great pensions coupled with tremendous increases in the value of their homes. I’m a teacher in the Bay Area at a school where virtually all of us are 45 years of age or older (most are in their 50s and approaching retirement). Almost all of us own our homes and have for quite some time. The typical home around here has appreciated several hundred thousand dollars in the past few years alone and quite a few have $1m+ in home equity at this point. Also, many of the teachers are married to someone working in another field, often earning a larger salary, so that doesn’t hurt either. Mo...
by Ron Ronnerson
Sat Jan 27, 2024 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Net Worth Averages in different professions
Replies: 91
Views: 11547

Re: Net Worth Averages in different professions

LITeacher - I know plenty of millionaire teachers on Long Island and even some that are multi-millionaires. This is especially true of tier 1 retirees that have great pensions coupled with tremendous increases in the value of their homes. I’m a teacher in the Bay Area at a school where virtually all of us are 45 years of age or older (most are in their 50s and approaching retirement). Almost all of us own our homes and have for quite some time. The typical home around here has appreciated several hundred thousand dollars in the past few years alone and quite a few have $1m+ in home equity at this point. Also, many of the teachers are married to someone working in another field, often earning a larger salary, so that doesn’t hurt either. Mo...
by Ron Ronnerson
Sat Jan 27, 2024 9:27 am
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24666

Re: Is paying off a 2.99% mortgage always a bad idea?

Your mortgage rate is actually a negative number. Do you still want to pay it off? If so, do it, but just be honest with yourself about effectively turning down a negative rate loan in real terms. A negative rate loan is an income stream for all intents and purposes. In the end, you have to choose between what your heart and brain want. Personally, I’d tell my heart to sit down and be quiet because the math computed by the brain is what rules for me. I did a cash-out refinance in 2021 and took out a 30-year mortgage at 2.375% for $500k on a $110k income. Of that amount, $150k was equity taken out from the house. I restarted the 30 year term after already living in the home for 11 years so that the mortgage will take over 40 years to pay off...
by Ron Ronnerson
Fri Jan 26, 2024 9:13 am
Forum: Personal Consumer Issues
Topic: How do you retire when you love your work?
Replies: 163
Views: 12989

Re: How do you retire when you love your work?

I just found out someone I know in the medical industry is quite severely sick in their mid 50s. Also a number of sudden heart attacks in 50s and 60s :(. I guess that is the crux of OP’s question. If you got very sick tomorrow, would you regret not quitting work earlier? If not, you truly have a golden ‘job’. I’ve got degrees in business and was working at a financial company, doing interesting work, and making my way up the ladder during my early to mid-20s. Then, in my late 20s, I went back to school to become a teacher. I’ve taught 9- to 12-year-old kids over the past 20 years and like my job quite a bit, even though I do have some challenging moments. If I won a jackpot, I’d still show up to work the next day. The reason has to do with...
by Ron Ronnerson
Thu Jan 25, 2024 9:43 pm
Forum: Personal Consumer Issues
Topic: How do you retire when you love your work?
Replies: 163
Views: 12989

Re: How do you retire when you love your work?

I just found out someone I know in the medical industry is quite severely sick in their mid 50s. Also a number of sudden heart attacks in 50s and 60s :(. I guess that is the crux of OP’s question. If you got very sick tomorrow, would you regret not quitting work earlier? If not, you truly have a golden ‘job’. I’ve got degrees in business and was working at a financial company, doing interesting work, and making my way up the ladder during my early to mid-20s. Then, in my late 20s, I went back to school to become a teacher. I’ve taught 9- to 12-year-old kids over the past 20 years and like my job quite a bit, even though I do have some challenging moments. If I won a jackpot, I’d still show up to work the next day. The reason has to do with...
by Ron Ronnerson
Thu Jan 25, 2024 8:51 pm
Forum: Personal Consumer Issues
Topic: How do you retire when you love your work?
Replies: 163
Views: 12989

Re: How do you retire when you love your work?

I just found out someone I know in the medical industry is quite severely sick in their mid 50s. Also a number of sudden heart attacks in 50s and 60s :(. I guess that is the crux of OP’s question. If you got very sick tomorrow, would you regret not quitting work earlier? If not, you truly have a golden ‘job’. I’ve got degrees in business and was working at a financial company, doing interesting work, and making my way up the ladder during my early to mid-20s. Then, in my late 20s, I went back to school to become a teacher. I’ve taught 9- to 12-year-old kids over the past 20 years and like my job quite a bit, even though I do have some challenging moments. If I won a jackpot, I’d still show up to work the next day. The reason has to do with...
by Ron Ronnerson
Wed Jan 24, 2024 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: No-state-income-tax states are not good for retirees.
Replies: 413
Views: 39172

Re: No-state-income-tax states are not good for retirees.

I pay a lot of tax here in CA but I do not think the services here are any better than the eight other states I have lived. DMV is terrible, our roads are in bad shape as huge amounts go to subsidizing mass transit and bike lanes. We will now have to start paying for garbage collection in my city and pay income-based electricity bills, which means they will likely tack on an extra $120 per month for me. Crime and homelessness are daily issues. Give me a low tax state anytime! Be careful what you wish for. What is the correlation for high / low tax states to standings in education, medical care, longevity, other quality of life issues? I looked up life-expectancy after seeing your post as I figured that one is easy enough to have some hard ...
by Ron Ronnerson
Tue Jan 23, 2024 9:58 pm
Forum: Personal Investments
Topic: How much is owned real estate (primary/secondary homes) as a percent of your net worth?
Replies: 113
Views: 8869

Re: How much is owned real estate (primary/secondary homes) as a percent of your net worth?

RE Assets: 52% ($1.2m) Other Assets: 48% ($1.12m) Total Assets: 100% ($2.32m) Mortgage Liabilities: 20% ($460k, 30-yr mortgage at 2.375%) Other Liabilities: 1% ($26k of credit card debt at 0% rate) Total Liabilities: 21% ($486k) Net Worth: 79% I think nuance is often important so here’s a little bit of a backstory. I’m a public-school teacher and my spouse is a stay-at-home parent. We’ve got a lower income than just about everyone in our neighborhood. We purchased our home in 2010 with a $15k down payment in a VHCOL area. The house was valued at $500k and we had a total net worth of $80k at the time. Over the next dozen years, we refinanced the house 3 times, restarting the 30-year term each time. We even took $150k in equity out of the hom...
by Ron Ronnerson
Sun Jan 21, 2024 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: No-state-income-tax states are not good for retirees.
Replies: 413
Views: 39172

Re: No-state-income-tax states are not good for retirees.

I’m in SoCal. The idea that the state is going to tax me at income rates for my capital gains really irks me. All the big taxes are unbearable here. Income, capital gains, sales tax, gas, and the cost of utilities is outrageous. The only benefit here for taxes is real estate if you bought your house a long time ago. This is interesting as I’m in Bay Area and my experience has been different. Our state income taxes are a three-digit number and have been as low as $0 in recent years (our gross income has been in the $110k-$145k range during the past 5 years, which is above the median for the state, but we do make use of retirement accounts to lower taxable income). Most of our expenses are in the following categories: housing, groceries, ins...
by Ron Ronnerson
Sun Jan 21, 2024 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Net Worth Averages in different professions
Replies: 91
Views: 11547

Re: Net Worth Averages in different professions

If my postings appear as arrogant and ignorant bragging, I apologize. Postings of earnings of $300 K and up are many and appear not infrequently . If those posters work hard and long with good work ethics, and save diligently, the numbers I threw are well within their range. There are also many posts by government employees including public school teachers with a few millions in saving and over $100 K pension with full COLA and full medical coverage. Don't we have to include them all in the arrogant and bragging $5 MM club? I am just number crunching. How about those asking "can I retire in my 30s or 40s with a few millions?" They are all future 5 millionaires, but about to choose not to. Thank you, sir. I think you are just seei...
by Ron Ronnerson
Sun Jan 21, 2024 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: No-state-income-tax states are not good for retirees.
Replies: 413
Views: 39172

Re: No-state-income-tax states are not good for retirees.

I’m in SoCal. The idea that the state is going to tax me at income rates for my capital gains really irks me. All the big taxes are unbearable here. Income, capital gains, sales tax, gas, and the cost of utilities is outrageous. The only benefit here for taxes is real estate if you bought your house a long time ago. This is interesting as I’m in Bay Area and my experience has been different. Our state income taxes are a three-digit number and have been as low as $0 in recent years (our gross income has been in the $110k-$145k range during the past 5 years, which is above the median for the state, but we do make use of retirement accounts to lower taxable income). Most of our expenses are in the following categories: housing, groceries, ins...
by Ron Ronnerson
Sun Jan 21, 2024 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Gross income, AGI, taxable income etc
Replies: 20
Views: 2327

Re: Gross income, AGI, taxable income etc

I think most people are just talking about their gross income, not including benefits such as employer contributions toward retirement and insurance. Depending on your purpose, you may wish to look at different numbers. Here’s an example of our actual numbers (rounded) from a couple of years ago: Gross Income from job: $111k Gross income from job and interest: $116k Gross Income from job including pension contributions by employer & state and interest: $149k Gross Income from job including pension contributions by employer & state ($144k), interest ($5k), credit card bonuses ($5k), brokerage bonuses ($2k), gifts received ($3k), stimulus checks ($7k), and subsidies toward health insurance through the government exchange ($20k): $186k...
by Ron Ronnerson
Sun Jan 21, 2024 11:41 am
Forum: Personal Investments
Topic: Re-Assessing Risk at 50
Replies: 42
Views: 4700

Re: Re-Assessing Risk at 50

My spouse and I both turn 50 this year and have a similar-sized portfolio. My wife became a stay-at-home parent at 43 and is likely already retired. I plan to go part-time at 55 and fully retire at 61. My teacher’s pension (with COLA) along with my wife’s social security should fully cover our retirement expenses. We’re around 80% equities and plan to slowly come down closer to 70% over the next dozen years. We have a simple 3-fund portfolio.
by Ron Ronnerson
Sun Jan 21, 2024 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Net Worth Averages in different professions
Replies: 91
Views: 11547

Re: Net Worth Averages in different professions

If my postings appear as arrogant and ignorant bragging, I apologize. Postings of earnings of $300 K and up are many and appear not infrequently . If those posters work hard and long with good work ethics, and save diligently, the numbers I threw are well within their range. There are also many posts by government employees including public school teachers with a few millions in saving and over $100 K pension with full COLA and full medical coverage. Don't we have to include them all in the arrogant and bragging $5 MM club? I am just number crunching. How about those asking "can I retire in my 30s or 40s with a few millions?" They are all future 5 millionaires, but about to choose not to. Thank you, sir. I think you are just seei...
by Ron Ronnerson
Fri Jan 19, 2024 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Leave family temporarily for new job in Bay Area?
Replies: 88
Views: 8123

Re: Leave family temporarily for new job in Bay Area?

I also would strongly advise keeping the family together and no one commuting 3000 miles. This is crazy as is but is beyond that with a baby in the picture. The Bay Area is pricey but you will likely be able to get a better paying job here. People’s jaws tend to drop at the costs but I think it’s important to be fair and drop your jaw at the income side too. I’m an elementary school teacher here and my income is close to $140k/year along with a six-figure pension in retirement as part of the package. I work in an excellent district but they can’t seem to find teachers around here anymore due, in part, to the pay. Opportunity abounds here. Traffic can be tough so it’s important to carefully consider where exactly you’ll live. Also, if you’ll...
by Ron Ronnerson
Tue Jan 16, 2024 9:05 pm
Forum: Personal Consumer Issues
Topic: Smoke Detectors
Replies: 56
Views: 6237

Re: Smoke Detectors

What did the OP end up getting? I replaced all my smoke/carbon minoxide detectors (interconnected hardwired w/ battery back up) in November with the First Alert ones that were onsale at Costco (used to have a mix of different Kidde ones that were installed when I moved into my house). The First Alert ones had a 10 year life and came with a bunch of different plug adapters so I was able to use the existing wiring with Kidde plugs on them. I ended up following the recommendation made below by LeftCoast: Apartment landlord here. We use First Alert 9120LBL hardwired smoke detectors with 10-year lithium backup batteries. They are easy to install, have not produced false alarms, and don't fail after 18 months the way the ones sold at Costco seem...
by Ron Ronnerson
Thu Jan 11, 2024 12:36 am
Forum: Personal Investments
Topic: Real estate as % of net worth?
Replies: 53
Views: 6406

Re: Real estate as % of net worth?

2010 (purchased home that year): home equity: $15k (down payment); home purchased for $500k with a $485k mortgage net worth: $75k home equity to net worth ratio: 20% mortgage rate: 5.25% for 30 years 2024 (still living in same home): home equity: $740k; mortgage balance of $460k* and home valued at $1.2m net worth: $1.83m home equity to net worth ratio: 40% mortgage rate: 2.375% for 30 years *$150k in home equity was taken out and moved into investments through a cash-out refinance in 2021. We have restarted the 30 year term on our mortgage 3 times through refinances and are on track to pay off the house in 41 years since the time of purchase. We may move to a lower cost of living area during retirement but might not. I consider home equity...
by Ron Ronnerson
Sun Jan 07, 2024 7:30 pm
Forum: Personal Investments
Topic: Where to park 100k for under a year?
Replies: 32
Views: 4859

Re: Where to park 100k for under a year?

I opened the Capitol One (but haven’t funded it yet) and can’t tell if the Fall23 promo was applied. I think I used the right link, but it doesn’t say anything in my account. Can you check yours to see if it specifies that the promo code was applied? Thanks! When I first opened my account this morning, I got a screen that said: "Congratulations! Here are your new 360 Performance Savings account details" and then it listed the routing and account number. Under that it said "Promo Details: Promo code: FALL23" and then there was a paragraph (in small font) containing the terms of the promo offer and finally a "Go to my account" button near the bottom of the screen. I printed out a copy of this screen. After print...
by Ron Ronnerson
Sun Jan 07, 2024 1:39 pm
Forum: Personal Investments
Topic: Where to park 100k for under a year?
Replies: 32
Views: 4859

Re: Where to park 100k for under a year?

If I'm understanding correctly, 90 days actually means 105 days from the time you open the account because the first 15 days count as the "initial funding period" and the 90 day clock doesn't begin until after those 15 days are up. The deposit that qualifies you for the bonus must be maintained during that time. Once the additional 90 days are up, the bonus is credited within 60 days after that. So the bonus could take around 5.5 months to appear from the time the account is opened. Correct on all counts. I linked the Capital One site, this condition of 90 day period not beginning until the 15th day after account opening is specified in their terms. You could super optimize this return by funding the $100k as close to the 15th da...
by Ron Ronnerson
Sun Jan 07, 2024 1:04 pm
Forum: Personal Investments
Topic: Where to park 100k for under a year?
Replies: 32
Views: 4859

Re: Where to park 100k for under a year?

Would a $1500 bonus if you keep the money in a savings account just for 90 days, interest you? Plus 4.35% earnings for a cumulative return of 10.35% (annualized)? https://www.capitalone.com/bank/fall23 HURRY!! Deadline to open the account is just 3 more days Edited to add: after you snag this Capital One bonus, I suggest you move that $100k into Merrill Edge / Bank of America universe to earn the Platinum Honors status, which gives you 75% boost on any of their credit card rewards.. Merrill Edge does have Boglehead approved investment options ( low cost, index funds ..) Thanks to the OP for asking this question and to lakpr for posting this response. I recently sold over $100k in I Bonds and was looking for a place to put the money so just...
by Ron Ronnerson
Sat Jan 06, 2024 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: TIME = MONEY: strategies to **SAVE TIME** (even if it costs $)
Replies: 51
Views: 7497

Re: TIME = MONEY: strategies to **SAVE TIME** (even if it costs $)

Here’s some of what we do: Work-Related Time Savings I work around 1300 hours per year as a teacher, which comes to an average of 25 hours per week over the course of a year. I don’t tutor or teach summer school. I plan to reduce my work schedule in a few years so I’m working 800-1000 hours per year instead. I enjoy my job and find it meaningful so it doesn’t feel too much like work but want longer weekends year-round. My wife stopped working in her early 40s to be a stay-at-home parent and is likely already retired (we’re both 49 years old). I don’t do side-gigs anymore. I used to churn bank accounts and transfer money in brokerages for bonuses, participate in focus groups, complete surveys, etc. for a bit of additional money when I was yo...
by Ron Ronnerson
Sat Jan 06, 2024 11:08 am
Forum: Personal Investments
Topic: Too much?? [Reduce Savings Rate?]
Replies: 15
Views: 3776

Re: Too much ??

I’m a teacher in California and expecting a pension that, along with my wife’s social security, should fully cover our retirement expenses. My spouse and I are both 49 years old and have a 9-year-old kid. We’ve saved a bit over $1m in various accounts and have $750k in home equity. So I’m in a relatively similar situation but a few years ahead of you in terms of age so figured I’d share some thoughts. First of all (you probably know this already but it needs to be said), make sure you both have adequate life insurance. Also, when you’re almost two decades away from retirement, understand that unpredictable things could happen by the time the future arrives. For example, you or your spouse may have to stop working earlier than you plan to, ...
by Ron Ronnerson
Fri Jan 05, 2024 6:40 pm
Forum: Investing - Theory, News & General
Topic: How did you make your first $1M?
Replies: 148
Views: 33600

Re: How did you make your first $1M?

There were a variety of factors but I think luck was among the most significant. Of all the times and places in the history of the world, I have found myself living in 21st century Bay Area.

I had a five-figure net worth when I bought a house in 2010 with a $15k down payment and then proceeded to make minimum payments on the mortgage. The portion of the payments going toward principal plus appreciation over the last 14 years has resulted in about a million dollars in equity.

I made another million dollars during the same timeframe by taking roughly half of my salary from teaching elementary school and investing it in the stock market.
by Ron Ronnerson
Fri Jan 05, 2024 1:40 pm
Forum: Personal Investments
Topic: Too much?? [Reduce Savings Rate?]
Replies: 15
Views: 3776

Re: Too much ??

I’m a teacher in California and expecting a pension that, along with my wife’s social security, should fully cover our retirement expenses. My spouse and I are both 49 years old and have a 9-year-old kid. We’ve saved a bit over $1m in various accounts and have $750k in home equity. So I’m in a relatively similar situation but a few years ahead of you in terms of age so figured I’d share some thoughts. First of all (you probably know this already but it needs to be said), make sure you both have adequate life insurance. Also, when you’re almost two decades away from retirement, understand that unpredictable things could happen by the time the future arrives. For example, you or your spouse may have to stop working earlier than you plan to, p...
by Ron Ronnerson
Fri Jan 05, 2024 12:28 am
Forum: Personal Finance (Not Investing)
Topic: Optimizing MAGI for ACA in 2023 As Changes Loom
Replies: 44
Views: 6231

Re: Optimizing MAGI for ACA in 2023 As Changes Loom

Looks like I can further reduce my MAGI if I choose a HDHP plan and contribute to HSA. In that case, a Bronze HDHP costs less than $100 for us. But that's a bit of chicken and egg situation, isn't it? We won't be able to lower our MAGI unless we choose the HDHP plan, and by choosing it and contributing, we are lowering the MAGI and thus paying less. But the math works out, right? Gross Income: $155,000 401K contribution: $22,500 (that's how much I can contribute in 2024, I know the limit is higher at 23,000) IRA contribution for couple: $14,000 HSA contribution for 10 months: $691,6 Net MAGI will be $155,000 - $22,500 - $1,400 - $691,6 = $111,584 With this calculation, I might end up having to deduct less on IRA to get my MAGI up a little ...