Search found 854 matches

by Admiral
Tue Nov 21, 2017 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 93
Views: 3928

Re: Why not take Social Security at 62

There is no "right" answer here, because too much depends on one's personal circumstances (including longevity). But, for what it's worth, this is Vanguard's take: https://personal.vanguard.com/pdf/ISGRTR.pdf Given that at age 65, more than 50% of women can expect to live past age 88 (and 50% of men...
by Admiral
Tue Nov 21, 2017 1:56 pm
Forum: Investing - Theory, News & General
Topic: Holding VTSAX only
Replies: 46
Views: 4627

Re: Holding VTSAX only

Even better go 50/50 VTSAX/VTIAX and call it a day. Add Total Bond funds when you get older. Simple.... The older I get the more I realize how I like this appraoch. I currenly have 70% VTSAX, 25% VTIAX, 5% VBTLX (only about 2k worth) but I wonder, what is even the point of keeping 2k there? Im 27 y...
by Admiral
Tue Nov 21, 2017 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: another refinance question (30 or 15 year?)
Replies: 10
Views: 481

Re: another refinance question (30 or 15 year?)

If you can manage the higher monthly payment, then it's a no brainer: shorter term, lower rate, less interest overall means 15 year FRM is the answer. Few people choose a 30 year mortgage if they can afford they payments on a 15 year one, unless the rate spread is not very substantial. Plus you are ...
by Admiral
Tue Nov 21, 2017 10:46 am
Forum: Personal Finance (Not Investing)
Topic: HELOC to Maximize Retirement Contribution
Replies: 13
Views: 988

Re: HELOC to Maximize Retirement Contribution

How much are you contributing to your retirement accounts now, what is their value, and where are you on your saving versus expected expenses in retirement? What is your projected SS and/or pension payout at FRA (you have a 457, so to me that means there may be a pension )? Without this info, it's ...
by Admiral
Tue Nov 21, 2017 8:03 am
Forum: Investing - Theory, News & General
Topic: Holding VTSAX only
Replies: 46
Views: 4627

Re: Holding VTSAX only

Even better go 50/50 VTSAX/VTIAX and call it a day. Add Total Bond funds when you get older. Simple.... The older I get the more I realize how I like this appraoch. I currenly have 70% VTSAX, 25% VTIAX, 5% VBTLX (only about 2k worth) but I wonder, what is even the point of keeping 2k there? Im 27 y...
by Admiral
Mon Nov 20, 2017 10:14 am
Forum: Personal Finance (Not Investing)
Topic: HELOC to Maximize Retirement Contribution
Replies: 13
Views: 988

Re: HELOC to Maximize Retirement Contribution

How much are you contributing to your retirement accounts now, what is their value, and where are you on your saving versus expected expenses in retirement? What is your projected SS and/or pension payout at FRA (you have a 457, so to me that means there may be a pension )? Without this info, it's d...
by Admiral
Mon Nov 20, 2017 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Refinance 30yr to 15yr mortgage?
Replies: 29
Views: 2342

Re: Refinance 30yr to 15yr mortgage?

While it may not cash flow, it’s not clear that he’s not making money. Those are two different things. How is he making money? He's losing money every month (negative cash flow), not making money every month. The only way for him to make money is to hope the property appreciates and then sell it, o...
by Admiral
Sun Nov 19, 2017 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Refinance 30yr to 15yr mortgage?
Replies: 29
Views: 2342

Re: Refinance 30yr to 15yr mortgage?

You should research 15yr mortgage rates, I don’t think 2.5% is possible without paying for points. I use this webpage http://www.mortgagenewsdaily.com/mortgage_rates/daily.aspx In the last 52 weeks the lowest a 15yr FRM has been is 3.12%. Yeah, I'd love to know where anybody is getting anything clo...
by Admiral
Sun Nov 19, 2017 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Refinance 30yr to 15yr mortgage?
Replies: 29
Views: 2342

Re: Refinance 30yr to 15yr mortgage?

Thanks again for the responses. Clearly I'm a novice, armed with just enough info to be very dangerous to my financial future. That being said, I don't quite understand the advice to sell the property... From my perspective, I have someone else paying 80% of the mortgage and associated fees for thi...
by Admiral
Fri Nov 17, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: Holding VTSAX only
Replies: 46
Views: 4627

Re: Holding VTSAX only

This was my facebook post yesterday: Notable US stock valuation points (higher is more expensive): (CAPE/PE10) September 1929 (peak): 32.56 August 1987 (before black Friday): 18.33 December 1999 (highest ever recorded): 44.20 December 2006 (peak before housing crash): 27.28 Today's valuation (Nov 2...
by Admiral
Fri Nov 17, 2017 1:52 pm
Forum: Investing - Theory, News & General
Topic: Holding VTSAX only
Replies: 46
Views: 4627

Re: Holding VTSAX only

This was my facebook post yesterday: Notable US stock valuation points (higher is more expensive): (CAPE/PE10) September 1929 (peak): 32.56 August 1987 (before black Friday): 18.33 December 1999 (highest ever recorded): 44.20 December 2006 (peak before housing crash): 27.28 Today's valuation (Nov 2...
by Admiral
Thu Nov 16, 2017 1:29 pm
Forum: Investing - Theory, News & General
Topic: Holding VTSAX only
Replies: 46
Views: 4627

Re: Holding VTSAX only

Tman, I mostly invest this way but I' am very young with many years to go. I think VTSAX is a great fund. I look for low ER (expense ratio) & being super efficient. A great fund that has a low ER & is super efficient is the "cat's meow"... So you dumped your "high-dividend" strategy? That's good to...
by Admiral
Thu Nov 16, 2017 12:50 pm
Forum: Investing - Theory, News & General
Topic: Holding VTSAX only
Replies: 46
Views: 4627

Re: Holding VTSAX only

In addition, I would suggest no one should be without 20% in bonds. The impact on portfolio volatility is significant, and the additional return lost is relatively small. At least based on all historical evidence. If you want to be 100% stocks, TSM is a fine choice . . . Have you ever experienced a...
by Admiral
Thu Nov 16, 2017 11:55 am
Forum: Investing - Theory, News & General
Topic: Holding VTSAX only
Replies: 46
Views: 4627

Re: Holding VTSAX only

If you want to be 100% stocks, TSM is a fine choice, though I agree with those upthread who feel that some international exposure is helpful in this global world we live in. That said, you note you are young. Have you ever experienced a severe market downturn with this allocation? It's only during t...
by Admiral
Thu Nov 16, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Bill Paying Issues
Replies: 18
Views: 1263

Re: Bill Paying Issues

Ran into the same problem with our credit union. Even though we have a joint account, they had no way to enable both of us having the same access to the payee list using our separate logins. Only one person could add/change/delete payees. The other person could not view the full payee info (account...
by Admiral
Wed Nov 15, 2017 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Sobering article for my 25 year old self
Replies: 57
Views: 6611

Re: Sobering article for my 25 year old self

This link has been posted many times. It's lots of math and charts to show that--Wow!--saving 50-60% of your income means you don't have to work very long. Yes, and if you save 100% (i.e. have a zero cost of living) you've already reached FI. That's neither realistic nor likely for the vast majority...
by Admiral
Wed Nov 15, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Bill Paying Issues
Replies: 18
Views: 1263

Re: Bill Paying Issues

Another thing to do is to have a single joint e-mail account for your shared responsibilities. My spouse and I have a family e-mail account. It is also the e-mail address given to our financial institutions. Thus, I can see all her e-mail notifications and she can see all mine. For instance, our ba...
by Admiral
Wed Nov 15, 2017 11:34 am
Forum: Investing - Theory, News & General
Topic: Do you subscribe to taking risk only on the equity side
Replies: 40
Views: 2296

Re: Do you subscribe to taking risk only on the equity side

I subscribe to the mantra that stocks (that is, index funds only in my case) are for return with some risk, and bonds (index funds only) are for stability and capital protection, and modest return. If I wanted to chase returns (which I don't, I learned that lesson 10 years ago) I would not do so wit...
by Admiral
Tue Nov 14, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: The 4% rule DOES fail but still makes sense!
Replies: 151
Views: 9960

Re: The 4% rule DOES fail but still makes sense!

If you cannot, in any way, adjust your living expenses downward such that you don't HAVE to withdraw 4% per year, then you don't have enough money. It's as simple as that. You need some flexibility when on a fixed income if that income is based on investments. Variable Withdrawal Rate is a better "r...
by Admiral
Sat Nov 11, 2017 8:07 pm
Forum: Investing - Theory, News & General
Topic: The average American retiree household
Replies: 57
Views: 10725

Re: The average American retiree household

I'm curious what a "typical" pension looks like: Monthly amount relative to previous salary? Inflation adjusted? Single life, or joint? Survivor benefit? Age when you can start to collect it? I've considered buying an SPIA when we retire to mimic a pension. Our pension is municipal govt not teacher...
by Admiral
Mon Nov 06, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Assessing my retirement savings rate
Replies: 9
Views: 1286

Re: Assessing my retirement savings rate

I'm trying to asses what my minimum savings rate needs to be to retire. Desired retire date: 25 years from this year (This puts me at retiring in my mid fifties. I could go later if needed obviously.) Retirement income needed: $60,000 a year after tax ($5,000 a month) to be comfortable. $4,000 a mo...
by Admiral
Mon Nov 06, 2017 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Should one use REITs
Replies: 48
Views: 3480

Re: Should one use REITs

I hold REITs, though it's probably less than 5% of my overall portfolio. They are volatile and are only appropriate for a tax-advantaged account due to their payout requirements, but they do generate decent rate of return. Are they necessary ? Probably not. Will they affect your overall portfolio if...
by Admiral
Thu Nov 02, 2017 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: what % return do you use?
Replies: 62
Views: 4129

Re: what % return do you use?

I sure hope the wizards who run big pension funds don't read this thread! 0%, 1%, 2%! Those returns are so far below historical averages it's kind of ridiculous. The future may not be like the past, but the past is all we have to go by. Are companies just going to stop innovating and not make anywhe...
by Admiral
Thu Nov 02, 2017 11:17 am
Forum: Investing - Help with Personal Investments
Topic: what % return do you use?
Replies: 62
Views: 4129

Re: what % return do you use?

We save the max that we can, plus employer match, or about $47k per year. In a few years we'll be able to do catch ups. That said, in Flexible Retirement Planner, with a 70/30 portfolio, I use: 7% Avg return, 10% standard deviation 2% Avg Inflation, 1% standard deviation Even if we earned nothing, w...
by Admiral
Thu Nov 02, 2017 10:17 am
Forum: Investing - Help with Personal Investments
Topic: 3 Admiral funds vs 1 Target fund?
Replies: 10
Views: 847

Re: 3 Admiral funds vs 1 Target fund?

Who I am & what I want: I'm 35, rolled over two old 401Ks into a Vanguard IRA, this is my retirement. Opened a new Roth IRA this year alongside and put in the $5,500 max, this is my emergency fund that I can tap, but may well stay with me till 59 1/2 as well. The IRA will receive my 401Ks as I swit...
by Admiral
Wed Nov 01, 2017 2:48 pm
Forum: Personal Consumer Issues
Topic: Car battery?
Replies: 53
Views: 3456

Re: Car battery?

My first Interstate Battery lasted for 7 years. The next one lasted less than 3. Same car, but two extremely cold winters and limited driving. Also, full discharge shortens the life of a battery.
by Admiral
Wed Nov 01, 2017 12:07 pm
Forum: Personal Consumer Issues
Topic: Car battery?
Replies: 53
Views: 3456

Re: Car battery?

Rocket, thank you for the link. Our's is an '04 TSX but without the hands free phone technology, so that's not causing the problem. Since my wife retired, she's not using the car as much. Found this: Batteries have a natural self discharge, plus all modern vehicles electrical systems draw power fro...
by Admiral
Wed Nov 01, 2017 10:56 am
Forum: Investing - Theory, News & General
Topic: the One investment to rule them all?
Replies: 25
Views: 3286

Re: the One investment to rule them all?

Hi, lets say you are 21 years old, house paid off, yearly expenditures are 50k. you can only invest in 1 mutual fund, etf or other investment vehicle to live off for the rest of your life.. what would it be and what is the absolute minimum dollar amount you would have to put in it for it to work? T...
by Admiral
Mon Oct 30, 2017 12:39 pm
Forum: Investing - Theory, News & General
Topic: Stocks go up, bonds fall. Stock fall, bonds also fall.
Replies: 51
Views: 5366

Re: Stocks go up, bonds fall. Stock fall, bonds also fall.

Strange that you would talk about rates rising for a year with no price declines and then quote a price change of about 6 months. :confused It still doesn't mean that CDs cannot be superior in terms of risk/reward, nor that bond prices won't decline in the future. And that's the real point of the p...
by Admiral
Mon Oct 30, 2017 12:18 pm
Forum: Investing - Theory, News & General
Topic: Stocks go up, bonds fall. Stock fall, bonds also fall.
Replies: 51
Views: 5366

Re: Stocks go up, bonds fall. Stock fall, bonds also fall.

The dividends have been completely wiped out and then some by the constant drop in NAV of the bond funds like VBTLX. So what? Unless you're selling your shares and locking in your losses, the price is immaterial. Bond funds are held for 1) stability and 2) dividend yield not NAV. CDs have penalties...
by Admiral
Mon Oct 30, 2017 11:48 am
Forum: Investing - Theory, News & General
Topic: Stocks go up, bonds fall. Stock fall, bonds also fall.
Replies: 51
Views: 5366

Re: Stocks go up, bonds fall. Stock fall, bonds also fall.

Stocks are up today and bonds (VBTLX) fall. Stocks were falling yesterday and bonds also fall. Has everyone holding bond funds simply made peace with the fact that bonds are practically useless until there is a 25%+ drop in the market? I can't convince myself to keep holding bonds. I love bonds and...
by Admiral
Mon Oct 30, 2017 6:36 am
Forum: Personal Finance (Not Investing)
Topic: Basic money management s/w for a mac-based millennial English major?
Replies: 21
Views: 1291

Re: Basic money management s/w for a mac-based millennial English major?

She's not disciplined enough to build her own budget and track everything via spreadsheet. Dad uses Quicken, but that looks like too much complexity and cost for her. What's a better match for her relatively simple needs? YNAB requires, I believe, that one manually record all expenses. If so that’s...
by Admiral
Mon Oct 30, 2017 6:02 am
Forum: Personal Finance (Not Investing)
Topic: Basic money management s/w for a mac-based millennial English major?
Replies: 21
Views: 1291

Re: Basic money management s/w for a mac-based millennial English major?

I was an English major. Excel is not very difficult and any question you could possibly think of has been Googled or YouTubed.

She should learn Excel anyway and consider it a life (and work) skill. There are a million budgeting templates as well.
by Admiral
Sun Oct 29, 2017 11:58 am
Forum: Investing - Theory, News & General
Topic: Stocks go up, bonds fall. Stock fall, bonds also fall.
Replies: 51
Views: 5366

Re: Stocks go up, bonds fall. Stock fall, bonds also fall.

Stocks are up today and bonds (VBTLX) fall. Stocks were falling yesterday and bonds also fall. Has everyone holding bond funds simply made peace with the fact that bonds are practically useless until there is a 25%+ drop in the market? I can't convince myself to keep holding bonds. I love bonds and...
by Admiral
Fri Oct 27, 2017 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Please Critique this Retirement Plan
Replies: 13
Views: 1362

Re: Please Critique this Retirement Plan

It sounds like 20% of the $2.4m is cash? You mean like money market account cash? Personally I'd consider moving some of that into either your bond or equity allocation if you already have the $100k emergency fund. Yes, indeed, it is a bunch of cash. Enough for >5 years of living without having to ...
by Admiral
Fri Oct 27, 2017 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Please Critique this Retirement Plan
Replies: 13
Views: 1362

Re: Please Critique this Retirement Plan

Let me say, the whole idea of the Special Account is increase the income for the years until SS so as to not be overly frugal taking 3.6% on the whole block ($2,400,000 plus $440,000= $2,840,000 times 3.6% is only $102,240). Super-cautious-me initially thinks to just take the $102k per year and let...
by Admiral
Fri Oct 27, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Please Critique this Retirement Plan
Replies: 13
Views: 1362

Re: Please Critique this Retirement Plan

What is so special about this special account? Is it invested? Your plan seems pretty similar to the Variable Withdrawal Plan, in which a pot of money is set aside (the VWP uses an annuity) to get you to SS. I'm asking about the special account because, depending on how the money is invested, if it'...
by Admiral
Thu Oct 26, 2017 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Do you include the capitalized value of Social Security in your asset allocation?
Replies: 32
Views: 1992

Re: Do you include the capitalized value of Social Security in your asset allocation?

No. I can't buy it or sell it. I compare Social Security and other guaranteed income streams from the amount of income I need/want in retirement, and evaluate the ability of my portfolio to make up the shortfall. Subtracting an actual income stream from an actual income need seems much sounder and ...
by Admiral
Thu Oct 26, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Do you include the capitalized value of Social Security in your asset allocation?
Replies: 32
Views: 1992

Re: Do you include the capitalized value of Social Security in your asset allocation?

I think if one is retired and drawing on it, then it's appropriate to consider it as part of fixed income in AA. This is essentially what you're doing anyway when you determine your expenses and how much income you need to draw from your portfolio to cover them. More SS = lower drawdown = ability (t...
by Admiral
Thu Oct 26, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Do you include the capitalized value of Social Security in your asset allocation?
Replies: 32
Views: 1992

Re: Do you include the capitalized value of Social Security in your asset allocation?

In general, if I can't rebalance into and out of something, it's not in my AA. +1 SS **may** reduce the amount of income needed from your portfolio. But you can't rebalance it, pass it on, or borrow against it. And both you and the program have to survive long enough to collect. I assume I will rec...
by Admiral
Tue Oct 24, 2017 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Can one have too much money in tax-deferred
Replies: 128
Views: 11359

Re: Can one have too much money in tax-deferred

I am retired and I wish ALL of my investments were in a taxable account. When I need to spend some of my investments the best place to take the money is from the taxable account. Ironically there is less tax on money taken from a taxable account than from a tax-advantaged account! Note that this wo...
by Admiral
Tue Oct 24, 2017 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Can one have too much money in tax-deferred
Replies: 128
Views: 11359

Re: Can one have too much money in tax-deferred

If you're worried about RMDs (and BTW Vanguard has a decent RMD calculator on their site) why would you not simply direct some (or all) of your contributions to a Roth? Or use a backdoor if you're above the phase-out? That money will be tax free forever, and never needs to be spent. As we get closer...
by Admiral
Tue Oct 24, 2017 9:38 am
Forum: Investing - Theory, News & General
Topic: Building very high net worth
Replies: 81
Views: 8282

Re: Building very high net worth

I believe in 2015 $7-8MM puts you in the 1% for NW. I would guess that number is $8-9 now, and closer to $9MM. You are mathematically stating that being well into the 1% for NW is "just comfortable." Of course where you live has major implications and I'm assuming you are incorporating VHCOL. J. Pa...
by Admiral
Tue Oct 24, 2017 9:19 am
Forum: Investing - Theory, News & General
Topic: Building very high net worth
Replies: 81
Views: 8282

Re: Building very high net worth

Honestly, if you are talking about high net worth, $12 million no longer qualifies because there are now over 2,000 billionaires. I would think it would take at least $100 million to be considered "quite wealthy" these days. $12 million is just comfortable when a new studio apartment can easily cos...
by Admiral
Mon Oct 23, 2017 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds at Age 50?
Replies: 17
Views: 1657

Re: Bonds at Age 50?

It depends on when one plans to stop working. The AA of a 50 year old who plans to work to 70 would (likely) not be the same as one who plans to only work until 59. Unless one has a ton of money (or very low expenses), you'll need more equities to support a longer retirement. We are 70/30 (really 75...
by Admiral
Mon Oct 23, 2017 7:04 pm
Forum: Investing - Theory, News & General
Topic: Over 50 catch up-calendar year or birth date?
Replies: 4
Views: 389

Re: Over 50 catch up-calendar year or birth date?

Rexindex wrote:
Mon Oct 23, 2017 6:54 pm
If a birthday is in August of 2018, can someone turning 50 make catch up contributions from January 2018(pre birthday) to max out employer plan for fiscal 2018?
Yes. It is based on the year you turn 50, not the actual 50th birthday. Note that not all plans will match these catch-ups.
by Admiral
Mon Oct 23, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 164
Views: 14915

Re: Does anyone here with net worths north of $1 mil use financial advisors?

I'm north of 1 million, and I do use an advisor. I'm paying considerably less than 1% though - closer to 0.25%. I'm in index funds (primarily DFA), and because my account is almost completely taxable, muni bonds. For me, the biggest stumbling block to doing it all myself is the bond side. My portfo...
by Admiral
Mon Oct 23, 2017 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 164
Views: 14915

Re: Does anyone here with net worths north of $1 mil use financial advisors?

I'm north of 1 million, and I do use an advisor. I'm paying considerably less than 1% though - closer to 0.25%. I'm in index funds (primarily DFA), and because my account is almost completely taxable, muni bonds. For me, the biggest stumbling block to doing it all myself is the bond side. My portfo...
by Admiral
Mon Oct 23, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Good idea to max out IRA with income past phase-out limit?
Replies: 14
Views: 850

Re: Good idea to max out IRA with income past phase-out limit?

If you don’t have any IRA outside of your workplace or 401k, you can contribute to non-deductible traditional IRA and then convert immediately to Roth IRA. I did this way many years, but the trick is not to have any IRA outside of your workplace retirement plan. Otherwise,the tax can be messy. Some...
by Admiral
Sat Oct 21, 2017 4:32 pm
Forum: Investing - Theory, News & General
Topic: TIAA Trouble [NY Times: TIAA pushes clients to high fee products]
Replies: 50
Views: 4583

Re: TIAA Trouble [NY Times: TIAA pushes clients to high fee products]

Meta critic said: "...That said, I actually like their life insurance products and hold term life insurance with them. Rates are competitive, and I can't imagine they won't honor the contract if/when it becomes an issue". What do you/other BH's consider 'competitive' life insurance rates ? I too ha...