Search found 4120 matches

by MnD
Sat Apr 20, 2019 8:47 am
Forum: Personal Investments
Topic: Fun with FIRECalc
Replies: 20
Views: 1521

Re: Fun with FIRECalc

Does anyone ever run FIRECalc with success rates between 50%-80% to see what those outcomes look like? I ran 50%, 60%, 70% and 75% and was quite surprised by the results. I wouldn't plan my retirement using these success rates but there seems to be a reasonable chance they may be what I end up gett...
by MnD
Fri Apr 19, 2019 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Dealership vs independent mechanics
Replies: 23
Views: 1543

Re: Dealership vs independent mechanics

I do what I can/want to myself and use independent owner mechanics that only work on the make of vehicles I own. The Toyota guy is right down the street and the Subaru guy is right across from the Subaru dealership. Have saved my many thousands versus the stealership and they know exactly what goes ...
by MnD
Fri Apr 19, 2019 7:30 am
Forum: Investing - Theory, News & General
Topic: This could be the biggest risk that retirees face?
Replies: 117
Views: 8100

Re: This could be the biggest risk that retirees face?

David Jay wrote:
Thu Apr 18, 2019 8:06 pm
CULater wrote:
Thu Apr 18, 2019 7:56 pm
How best to manage this tail risk for the Average Joe and Josephine?
How about just setting an SWR that is under 4%?
if you want to win the richest person in the graveyard contest that's a great strategy regardless of how advanced ones age of demise.
by MnD
Thu Apr 18, 2019 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: When did you start spending more and saving less?
Replies: 76
Views: 4561

Re: When did you start spending more and saving less?

Temporarily for X years when we had kids starting 26 years ago and permanently when we retired a few months ago.
We were able to cash flow one tuition/room/board for 6 years and had saved just enough for the two overlap years to sum to 8 years so long-term savings was unaffected.
by MnD
Thu Apr 18, 2019 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: In Laws Retirement Nest Egg
Replies: 156
Views: 14105

Re: In Laws Retirement Nest Egg

I'm sure they'll "scrape by" somehow...... https://www.shnugi.com/retirement-account-value-percentile-calculator/?min_age=60&max_age=65&retqliq=700000 A retirement account value of 700000.00 for ages 60 to 65 ranks at: 91.44% This means that for every 100 people there are about 91 who have less or ...
by MnD
Thu Apr 18, 2019 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: In Laws Retirement Nest Egg
Replies: 156
Views: 14105

Re: In Laws Retirement Nest Egg

I'm sure they'll "scrape by" somehow...... https://www.shnugi.com/retirement-account-value-percentile-calculator/?min_age=60&max_age=65&retqliq=700000 A retirement account value of 700000.00 for ages 60 to 65 ranks at: 91.44% This means that for every 100 people there are about 91 who have less or ...
by MnD
Thu Apr 18, 2019 3:01 pm
Forum: Personal Investments
Topic: Re-balancing "organically"
Replies: 12
Views: 1266

Re: Re-balancing "organically"

I use the 5/25 rebalancing criteria. My spreadsheet calculates the percentage each sub-allocation is away from target and does the rebalancing check. I used the 5/null criteria because I don't have any suballocations. Global market cap equity 70%, fixed income 30%. Rebalance when fixed income less ...
by MnD
Thu Apr 18, 2019 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 39141

Re: Mr. Money Mustache, SWR, and equity allocation

It takes about 6 years in most case to go from 25x to 40x with normal returns(6%) and modest savings rate (.5x). If we get poor returns (2%) real then it takes longer. But if we get 2% real, that 4% is going to think about going back to work as they get poorer and poorer every year. And obviously y...
by MnD
Thu Apr 18, 2019 7:19 am
Forum: Personal Investments
Topic: Re-balancing "organically"
Replies: 12
Views: 1266

Re: Re-balancing "organically"

in addition to the point that new investments or withdrawals are frequently inadequate to achieve reblancing objectives, the literature suggests that frequent/constant rebalancing is suboptimal on a return basis relative to infrequently performed threshold based rebalancing approaches. From a practi...
by MnD
Tue Apr 16, 2019 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: In Laws Retirement Nest Egg
Replies: 156
Views: 14105

Re: In Laws Retirement Nest Egg

I'm sure they'll "scrape by" somehow...... https://www.shnugi.com/retirement-account-value-percentile-calculator/?min_age=60&max_age=65&retqliq=700000 A retirement account value of 700000.00 for ages 60 to 65 ranks at: 91.44% This means that for every 100 people there are about 91 who have less or t...
by MnD
Tue Apr 16, 2019 6:58 am
Forum: Personal Finance (Not Investing)
Topic: Do not use Personal Capital
Replies: 76
Views: 9613

Re: Do not use Personal Capital

I think saying that the Personal Capital advisor has complete "control" is a bit of a misnomer. They have complete "view," which is the same consolidated view you have. I do not believe that Personal Capital has any ability to actually control those external accounts. They basically use this servic...
by MnD
Mon Apr 15, 2019 10:01 am
Forum: Personal Finance (Not Investing)
Topic: What defines "income" on a retiree's credit card application?
Replies: 102
Views: 5895

Re: What defines "income" on a retiree's credit card application?

I use/used MAGI pre and post retirement.
Income is income - no point in making arbitrary assumptions like "well this income was used for that so I won't count it".
That said, we don't have a lot of fully tax exempt non-reportable income.
by MnD
Mon Apr 15, 2019 8:30 am
Forum: Personal Investments
Topic: Increasing Risk in Retirement
Replies: 26
Views: 2126

Re: Increasing Risk in Retirement

The problem I see with a variable and bidirectional AA on the basis of "what if's" is getting whip-sawed with higher than expected returns in earlier retirement when one has less equity exposure followed by lower than expected returns when one has increased risk. I'm exceeding comfortable with risk ...
by MnD
Mon Apr 15, 2019 8:08 am
Forum: Investing - Theory, News & General
Topic: Thrift Savings Plan expenses rising
Replies: 50
Views: 4047

Re: Thrift Savings Plan expenses rising

In addition to the G fund....... - Superior protection from creditors - When reconstituted next year, the I fund ER will be 56% and 60% lower than comparable Vanguard and Blackrock offerings (VXUS, IXUS). - Retirees age 55-59.5 can withdraw funds penalty-free without setting up and being bound by a...
by MnD
Sun Apr 14, 2019 6:58 pm
Forum: Investing - Theory, News & General
Topic: Thrift Savings Plan expenses rising
Replies: 50
Views: 4047

Re: Thrift Savings Plan expenses rising

Well, yes, then we agree that I should do as planned and roll the TSP (except my G fund holdings) to one of the low cost brokerage IRAs when I retire. As the TSP's costs drift higher than them, I'm looking for a reason to stay and I'm not finding one. Many of the costs mentioned here and an in earl...
by MnD
Sun Apr 14, 2019 9:28 am
Forum: Investing - Theory, News & General
Topic: Thrift Savings Plan expenses rising
Replies: 50
Views: 4047

Re: Thrift Savings Plan expenses rising

Well, yes, then we agree that I should do as planned and roll the TSP (except my G fund holdings) to one of the low cost brokerage IRAs when I retire. As the TSP's costs drift higher than them, I'm looking for a reason to stay and I'm not finding one. Many of the costs mentioned here and an in earl...
by MnD
Sun Apr 14, 2019 8:58 am
Forum: Investing - Theory, News & General
Topic: Equity valuation and not caring
Replies: 50
Views: 3017

Re: Equity valuation and not caring

Still pounding the valuation gong?

Image
by MnD
Sat Apr 13, 2019 10:00 am
Forum: Investing - Theory, News & General
Topic: Post your Investment Policy Statement IPS here
Replies: 62
Views: 64486

Re: Post your Investment Policy Statement IPS here

70/30 AA, Global market cap equities, TSP G and DODLX FI, Rebalance to AA if FI <25% or >35%, Weighted ER<= .10.
5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.
by MnD
Fri Apr 12, 2019 8:44 am
Forum: Investing - Theory, News & General
Topic: Thrift Savings Plan expenses rising
Replies: 50
Views: 4047

Re: Thrift Savings Plan expenses rising

In reading the minutes of the Board over the past few years, I would opine the large bulk of addition spending has gone towards work to accommodate participation by members of the military, greatly increasing security and most recently bringing withdrawal and other customer-requested options into th...
by MnD
Thu Apr 11, 2019 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Paying Estimated Taxes in Retirement
Replies: 24
Views: 1504

Re: Paying Estimated Taxes in Retirement

While doing my last "working year" income taxes yesterday, it occurred to me that I need to keep very careful track that we're making the correct tax payments going forward. I have a taxable pension, have some sick day and retro pay (Total 77K) and will claim spousal SS benefits in July. (6K for th...
by MnD
Tue Apr 09, 2019 12:33 pm
Forum: Personal Investments
Topic: Conversion to Roth
Replies: 24
Views: 1308

Re: Conversion to Roth

It's not a given that you should convert to top of 22% (or 24%) given that you indicated RMD's wouldn't push you to the top of 22% until your 80's and you plan to leave your entire ending portfolio to charity. In fact you could pay a lot of taxes early and unnecessarily. A lot depends on real growth...
by MnD
Tue Apr 09, 2019 9:02 am
Forum: Investing - Theory, News & General
Topic: Retirees: Are you annually spending in Real or Nominal Terms?
Replies: 63
Views: 3796

Re: Retirees: Are you annually spending in Real or Nominal Terms?

Retired recently at age 56. I constructed an automatic monthly "paycheck" based on the after-tax net of 5% of annual portfolio balance. So that will vary. We get another monthly paycheck from a pension which will not vary (partial inflation adjustment at 62). Lower earner will claim SS at 62 and hig...
by MnD
Tue Apr 09, 2019 7:59 am
Forum: Personal Investments
Topic: International under-performance
Replies: 204
Views: 11197

Re: International under-performance

https://i.imgur.com/sXZg0J1.png Only a 7 year trend here of US outperforming INTL Yep. And with rebalancing and regular contributions, my global market cap equity portfolio didn't start lagging 100% US equity until 2014. So past 5 years a single-country bet has paid off. Whoop-dee-doo. With 33 year...
by MnD
Mon Apr 08, 2019 2:01 pm
Forum: Personal Investments
Topic: Conversion to Roth
Replies: 24
Views: 1308

Re: Conversion to Roth

I also consider that the likelihood of you living beyond 2025 is quite high, so I would suggest to go even to the top of 24% tax bracket. Come 2026, the 22% bracket becomes 25%, 24% bracket becomes 28%, and AMT will be back. Limited time sale from the government for Roth conversions, jump in while ...
by MnD
Mon Apr 08, 2019 12:47 pm
Forum: Personal Investments
Topic: Conversion to Roth
Replies: 24
Views: 1308

Re: Conversion to Roth

I also consider that the likelihood of you living beyond 2025 is quite high, so I would suggest to go even to the top of 24% tax bracket. Come 2026, the 22% bracket becomes 25%, 24% bracket becomes 28%, and AMT will be back. Limited time sale from the government for Roth conversions, jump in while ...
by MnD
Mon Apr 08, 2019 9:27 am
Forum: Investing - Theory, News & General
Topic: Unconventional investment choices
Replies: 86
Views: 6963

Re: Unconventional investment choices

20% of portfolio in four Dodge and Cox funds
5% SWR (of annual portfolio balance)
Global market cap on equity side (since 2001)
Taxable emergency/spending/new car/miscellaneous/whatever fund 100% equity (since 1986)
by MnD
Sun Apr 07, 2019 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: IRS 2% bounced check fee!!
Replies: 41
Views: 4928

Re: IRS 2% bounched check fee!!

There are numerous ways to prevent a check from bouncing when there are insufficient funds in your primary checking account. Most are free and others might cost you one day interest on the balance, which unsurprisingly will be vastly less than 2%. You can even order them from best to worst options. ...
by MnD
Sun Apr 07, 2019 7:03 pm
Forum: Personal Investments
Topic: Potential 2019 recession: Thoughts and course of action
Replies: 28
Views: 2354

Re: Potential 2019 recession: Thoughts and course of action

Recessions are great news for beginning investors with limited assets saved so far.
You are buying stocks "on sale" while the hit to your existing portfolio is minimal.
Don't even think about buying bonds/MM funds in anticipation of or during a recession.
by MnD
Sun Apr 07, 2019 9:54 am
Forum: Investing - Theory, News & General
Topic: Fidelity, Schwab unseat Vanguard in new phase of fintech
Replies: 29
Views: 3610

Re: Fidelity, Schwab unseat Vanguard in new phase of fintech

Coke/Pepsi/Dr.Pepper
Costco/Sam's/BJ's Wholesale

Many people have strong preference opinions about the above trios as well.
by MnD
Sun Apr 07, 2019 9:26 am
Forum: Personal Investments
Topic: Hit your number, retire and boom a correction?
Replies: 67
Views: 7893

Re: Hit your number, retire and boom a correction?

The bolted on cash bucket and market-timing based withdrawal strategy adds complexity and since you are not including it in your AA, actually increases the risk of overall portfolio failure. You should add the 3 years back into your portfolio at your desired overall AA, withdraw from your portfolio ...
by MnD
Fri Apr 05, 2019 11:30 pm
Forum: Personal Investments
Topic: allocation change with "winning the game"
Replies: 39
Views: 3587

Re: allocation change with "winning the game"

if one is close to achieving a 0% failure on firecalc, does one adjust allocation to very conservative? if so, and one continues to work, does one invest future earnings in 100% equities, as it is for inheritance or philanthropy, not for the original owner? It's a mix of ability, willingness and ne...
by MnD
Fri Apr 05, 2019 12:46 pm
Forum: Personal Investments
Topic: Disastrous amount of brokerage transfer fee slapped by Trade Station?
Replies: 18
Views: 1074

Re: Disastrous amount of brokerage transfer fee slapped by Trade Station?

Why are you spreading and moving your investments all over the place? If it's for sign-up bonuses its hard to have much sympathy for you getting dinged with big service and transfer fees. This practice is a big cost and you should be paying it versus spreading it over customers who aren't doing this...
by MnD
Fri Apr 05, 2019 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have guaranteed replacement cost provision with your homeowners insurance?
Replies: 27
Views: 1780

Re: Do you have guaranteed replacement cost provision with your homeowners insurance?

A more common need is full replacement cost on a partial loss for structural. Perhaps your old siding and old roof are considered totaled from hail and have replacement cost of $75K but their depreciated value is $20K. Is your insurance going to pay $75K or $20K (minus deductible)? I had the more f...
by MnD
Fri Apr 05, 2019 12:24 pm
Forum: Personal Investments
Topic: How to replenish Bucket 1?
Replies: 15
Views: 1634

Re: How to replenish Bucket 1?

You should read the paper. Bucket strategies underperform because they only rebalance partially in the event of market declines and only in that one direction. And yet they are not categorically a more conservative glidepath and in fact during "down" periods of safe bucket depletion, their glidepat...
by MnD
Fri Apr 05, 2019 10:35 am
Forum: Personal Investments
Topic: Retirement Asset Allocation Question
Replies: 18
Views: 1337

Re: Retirement Asset Allocation Question

Expenses: $80K Non-portfolio income: $74K Portfolio: $2M So in a nutshell you'll have accumulated $2M for which you have virtually no utility for. You could be 0/100, 100/0 or anything in between. Or you could give a large percentage of it away right now to make the world a better place. It's not a ...
by MnD
Fri Apr 05, 2019 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Do you have guaranteed replacement cost provision with your homeowners insurance?
Replies: 27
Views: 1780

Re: Do you have guaranteed replacement cost provision with your homeowners insurance?

A more common need is full replacement cost on a partial loss for structural. Perhaps your old siding and old roof are considered totaled from hail and have replacement cost of $75K but their depreciated value is $20K. Is your insurance going to pay $75K or $20K (minus deductible)? I had the more fa...
by MnD
Thu Apr 04, 2019 9:04 pm
Forum: Personal Consumer Issues
Topic: Two cars come to two-way stop in opposite directions - one is turning left....
Replies: 6
Views: 1195

Two cars come to two-way stop in opposite directions - one is turning left....

So two cars arrive at a two-way stop intersection in opposite directions. One car is signaling to turn left in front of (or behind) the other car which intends to go straight across the intersection. I think the car that arrives first has the right of way when the cross-street is clear, even in the ...
by MnD
Thu Apr 04, 2019 7:42 pm
Forum: Personal Investments
Topic: How to replenish Bucket 1?
Replies: 15
Views: 1634

Re: How to replenish Bucket 1?

I would suggest you read this paper and the supporting new article. "Buckets" are a demonstrably very suboptimal approach to managing withdrawals in retirement when evaluated using data from the past 115 years across 21 countries. I listened to the Bogleheads podcast and Christine Benz when asked t...
by MnD
Thu Apr 04, 2019 5:20 pm
Forum: Personal Investments
Topic: How to replenish Bucket 1?
Replies: 15
Views: 1634

Re: How to replenish Bucket 1?

I would suggest you read this paper and the supporting new article. "Buckets" are a demonstrably very suboptimal approach to managing withdrawals in retirement when evaluated using data from the past 115 years across 21 countries. I listened to the Bogleheads podcast and Christine Benz when asked to...
by MnD
Thu Apr 04, 2019 9:57 am
Forum: Investing - Theory, News & General
Topic: Make sure your retirement investment plan includes being fired from your job in your 50s
Replies: 285
Views: 16423

Re: Make sure your retirement investment plan includes being fired from your job in your 50s

I think it's a good article because everyone I know assumes they and their SO can choose to keep working at peak earnings for as long as they want to. We planned for a mid 50's retirement and pulled it off. But an early 50's lay-off for one of us was pretty scary. Ended up in a higher salary not lon...
by MnD
Wed Apr 03, 2019 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: What is Financial Independence (FI) in the simplest terms?
Replies: 80
Views: 4680

Re: What is Financial Independence (FI) in the simplest terms?

indexonlyplease wrote:
Tue Apr 02, 2019 1:32 pm
When you no longer need to work and can maintain the same lifestyle as you did when working.
This by personal experience.
by MnD
Wed Apr 03, 2019 9:20 am
Forum: Personal Finance (Not Investing)
Topic: New Bank: Schwab or Fidelity
Replies: 20
Views: 1465

Re: New Bank: Schwab or Fidelity

They are both excellent choices (I've used both over the years--currently using Fido). The consensus from prior discussions is that Fidelity is preferred if you are looking for an easier way to get ~2% interest on a MMF as opposed to .4% from a checking account. Schwab has better customer service i...
by MnD
Wed Apr 03, 2019 8:57 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44893

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

I'm impressed Vanguard actually made a decision and set a hard deadline in the near future to transition/scrap something, as opposed to the transition to brokerage accounts which apparently will be completed when the last mutual fund account holder passes away.
by MnD
Tue Apr 02, 2019 10:55 am
Forum: Personal Investments
Topic: Schwab users: Does Schwab discourage the purchase of money market funds?
Replies: 44
Views: 3175

Re: Schwab users: Does Schwab discourage the purchase of money market funds?

Good reason to switch to Vanguard. I use both Prime Money Market and Vanguard Treasury Money Market. And use my bank accounts for banking transactions such as checks and bill pay, do ACH transfers from Vanguard money market accounts to checking accounts as needed. Very easy way to get best money ma...
by MnD
Tue Apr 02, 2019 8:23 am
Forum: Investing - Theory, News & General
Topic: IF we enter a financial crisis in the future, how are you going to adjust?
Replies: 57
Views: 3634

Re: IF we enter a financial crisis in the future, how are you going to adjust?

Costco Kirkland Signature wine if the S&P 500 goes under 1750..... :shock:
by MnD
Tue Apr 02, 2019 12:00 am
Forum: Investing - Theory, News & General
Topic: IF we enter a financial crisis in the future, how are you going to adjust?
Replies: 57
Views: 3634

Re: IF we enter a financial crisis in the future, how are you going to adjust?

MrJones wrote:
Mon Apr 01, 2019 11:14 pm
OP, you might want to acquaint yourself with the core philosophies of this forum.
Based on his post history Moochy seems to be either trolling or completely oblivious to where he's posting.
by MnD
Mon Apr 01, 2019 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: How to get cash quickly
Replies: 102
Views: 5935

Re: How to get cash quickly

arf30 wrote:
Mon Apr 01, 2019 5:55 pm
You can go to any bank and do a cash advance against a debit card to get large amounts of cash. Fidelity and Schwab don't charge a fee for this, not sure about Ally.
This. I can confirm Schwab does not charge a fee but who knows on Ally.
by MnD
Mon Apr 01, 2019 4:33 pm
Forum: Personal Investments
Topic: Schwab users: Does Schwab discourage the purchase of money market funds?
Replies: 44
Views: 3175

Re: Schwab users: Does Schwab discourage the purchase of money market funds?

I pulled all my money from Schwab for this reason and went to Fidelity. The fact that you can't transact out of a MM for banking is ridiculous and obviously set up to screw the customer. I'd use Vanguard but they are a total disaster at anything other than running a fund. Forget about try to bank o...
by MnD
Mon Apr 01, 2019 10:04 am
Forum: Personal Investments
Topic: Schwab users: Does Schwab discourage the purchase of money market funds?
Replies: 44
Views: 3175

Re: Schwab users: Does Schwab discourage the purchase of money market funds?

The question is subjective but they would prefer you be an asleep at the wheel customer and keep cash in bank sweep versus MM funds, CD's or T-bills. The spread (net interest revenue) they earn on the low yielding bank sweep is the largest source of revenue for Schwab Inc. They are very transparant ...