Search found 710 matches

by Cyclesafe
Sun Jan 20, 2019 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Stay the course is hard
Replies: 56
Views: 5120

Re: Stay the course is hard

And for something different..... Build an Excel spreadsheet that projects out to (ideally) death or at least intended retirement. You'll need guesses as to current assets; future income, savings, returns , inflation; tax rates, property taxes, tax schemes; and expenses (especially medical). Once you...
by Cyclesafe
Sat Jan 19, 2019 3:12 pm
Forum: Investing - Theory, News & General
Topic: Is using an Asset Allocation Mental Accounting?
Replies: 43
Views: 1831

Re: Is using an Asset Allocation Mental Accounting?

To assess risk tolerance, I consider the number of times total fixed investment covers drawdown. For proforma spreadsheets, I set a minimums for the latter and let asset allocation float. The result is that AA in percentage terms stay anyway within a 5% range.
by Cyclesafe
Sat Jan 19, 2019 3:06 pm
Forum: Personal Consumer Issues
Topic: Looking to buy 2004 BMW - with steptronic
Replies: 6
Views: 515

Re: Looking to buy 2004 BMW - with steptronic

Had a 2001 330i with Steptronic. Worry free, but pointless.
by Cyclesafe
Sun Jan 13, 2019 8:01 am
Forum: Personal Finance (Not Investing)
Topic: How would you interpret this comment from boss about possible redundancy package?
Replies: 8
Views: 1087

Re: How would you interpret this comment from boss about possible redundancy package?

Having personally been through this twice, I'd say that one far too easily overestimates one's unique value to the company. Nobody is unique in the eyes of those whose own expertise and experience become more dear upon the departure of a subordinate. My read is that you have no prospects of changing...
by Cyclesafe
Fri Jan 11, 2019 10:17 am
Forum: Investing - Theory, News & General
Topic: Kitces - Retirement Tax Rate Equilibrium
Replies: 23
Views: 3418

Re: Kitces - Retirement Tax Rate Equilibrium

This approach forces one to confront a number of unknowables, the most important of which is actual investment returns. Whether one will still be filing jointly is another biggie. Implementing at one's theoretical tax equilibrium rate forces one to incur real "unnecessary" taxes now, before the futu...
by Cyclesafe
Mon Jan 07, 2019 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Strategic Spending to Hedge Against Future Uncertainity
Replies: 19
Views: 858

Re: Strategic Spending to Hedge Against Future Uncertainity

Balance. One can ameliorate, but not eliminate bad luck. When you experience stuff now, you experience them as a couple in your 30's. In your 50's, you'll tend to want to do different things. If you have the time (?), inclination (check!), and money (check!) to do more of the stuff you both enjoy no...
by Cyclesafe
Sun Jan 06, 2019 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: 2019 tIRA to Roth conversion -- now or later?
Replies: 12
Views: 852

Re: 2019 tIRA to Roth conversion -- now or later?

Me too. Looking at converting a like amount of VTIAX. If paying a marginal tax of 37.1% (24% + 3.8% NIIT + 9.3% Cali), I've calculated that VTIAX would have to drop an additional 10.5% in 2019 - then increase 7% (Vanguard "guidance" for international equity) in each of the next four years - for me t...
by Cyclesafe
Sat Jan 05, 2019 6:02 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions Question
Replies: 29
Views: 1767

Re: Backdoor Roth Question

Not to beat a dead horse but it really doesn't matter that you haven't opened an Roth IRA yet. Do a conversion of $1 tomorrow and start the clock. You will immediately have access to all converted funds which will quickly be tens of thousands of dollars, just not the earnings above the converted do...
by Cyclesafe
Fri Jan 04, 2019 10:04 am
Forum: Personal Finance (Not Investing)
Topic: What Do You Spend The Most On Annually?
Replies: 158
Views: 8249

Re: What Do You Spend The Most On Annually?

Need to also include taxes and medical.
by Cyclesafe
Mon Dec 31, 2018 3:47 am
Forum: Personal Finance (Not Investing)
Topic: Another Annuity Question
Replies: 14
Views: 826

Re: Another Annuity Question

Also bridged to social security with a 10 year fixed term SPIA starting in 2016 by annuitizing a Vanguard variable annuity. Got the contract rate of 4%. Current SEC return on Total Bond in a VVA is 2.92%.
by Cyclesafe
Sun Dec 30, 2018 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Is SPIA appropriate for us later on?
Replies: 5
Views: 568

Re: Is SPIA appropriate for us later on?

A SPIA makes sense when otherwise one might come up short if they live too long. IOW's if "longevity insurance" is necessary. In my case, I will buy a joint life SPIA at age 75+ if my wife and I are still likely to live to 100 and nobody in our family has seemed willing to reliably take over our inv...
by Cyclesafe
Sun Dec 30, 2018 4:52 pm
Forum: Personal Consumer Issues
Topic: Corvette vs Cayman/Boxster......anyone owned both?
Replies: 57
Views: 4560

Re: Corvette vs Cayman/Boxster......anyone owned both?

randomguy wrote:
Sun Dec 30, 2018 3:58 pm
Who wants to be the 60 year old guy in a boxster or a 911?
Me.
by Cyclesafe
Sat Dec 29, 2018 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: HR Issue at Work
Replies: 9
Views: 1208

Re: HR Issue at Work

Let them do the confronting. Respond calmly and truthfully to their specifics and if there's still a problem you might have to find a job elsewhere. There's no obligation of presumption of innocence or due process within a company. That's the world we live in today.
by Cyclesafe
Sat Dec 29, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Health Insurance Premium Tax Deductible?
Replies: 17
Views: 1742

Re: Retiree Health Insurance Premium Tax Deductible?

Yes - qualifying medical expenses exceeding 7.5% of your adjusted gross income are deductible. After January 1, 2019 it's 10%.
by Cyclesafe
Sat Dec 29, 2018 8:43 am
Forum: Personal Consumer Issues
Topic: Corvette vs Cayman/Boxster......anyone owned both?
Replies: 57
Views: 4560

Re: Corvette vs Cayman/Boxster......anyone owned both?

OP, simply drive both and you will know which one's for you.
by Cyclesafe
Sat Dec 29, 2018 4:50 am
Forum: Investing - Theory, News & General
Topic: Annuities objectively considered
Replies: 111
Views: 7295

Re: Annuities objectively considered

Nevertheless, we’re not sorry or kicking ourselves for holding a substantial VA. And every so often we roll a portion of the VA over to an immediate annuity via a 1035 exchange to produce monthly income. The tax treatment of such monthly payments is favorable, as only the pro rata portion of each c...
by Cyclesafe
Sat Dec 29, 2018 4:39 am
Forum: Investing - Help with Personal Investments
Topic: Single Premium Immediate Annuity
Replies: 22
Views: 3227

Re: Single Premium Immediate Annuity

The premium tax is paid only on the initial amount annuitized. Get your annuity while a resident of a state that does not charge a premium tax.

With regard to qualifying v. non-qualifying? States do what states do.
by Cyclesafe
Fri Dec 28, 2018 8:03 pm
Forum: Investing - Theory, News & General
Topic: Annuities objectively considered
Replies: 111
Views: 7295

Re: Annuities objectively considered

A SPIA for one's unchaperoned dotage is tough to beat.
by Cyclesafe
Fri Dec 28, 2018 10:24 am
Forum: Investing - Help with Personal Investments
Topic: How to monitor elderly parents' finances to protect them from fraud
Replies: 15
Views: 664

Re: How to monitor elderly parents' finances to protect them from fraud

Your parents had the same issues with their parents. If they are "still sharp" they would welcome your interest - I know I would. But the level of involvement should be phased in. The first level should be a candid discussion of how they want you to be involved in their overall care as they approach...
by Cyclesafe
Thu Dec 27, 2018 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Loss of Job
Replies: 12
Views: 1462

Re: Loss of Job

Been there - twice.

Best to put your severance into a money market until you are stable in your new situation. IMHO getting a new acceptable job should be your first priority. In the interim, it's better to keep your financial options open.
by Cyclesafe
Mon Dec 24, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: Begin loading the “Elephant Gun”?
Replies: 26
Views: 5131

Re: Begin loading the “Elephant Gun”?

Thanks to posters here for reminding me once again to not time the market. I was thinking seriously of upping my stake in international equity despite a decade of regret for originally having done so. Vanguard projects 7% vs 4% for domestic, blah, blah, blah. My IPS calls for 50/50 with 5% bands and...
by Cyclesafe
Sat Dec 22, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Remodel expenses before sale of home
Replies: 12
Views: 975

Re: Remodel expenses before sale of home

Modest application of lipstick prior to sale is warranted. So is addressing basic functionality. But serious cosmetic remodeling will likely be wasted on a potential buyer who will not appreciate your choices.
by Cyclesafe
Sat Dec 22, 2018 11:16 am
Forum: Investing - Theory, News & General
Topic: All the "should I be 100% stocks" threads over the last year.
Replies: 175
Views: 11870

Re: All the "should I be 100% stocks" threads over the last year.

Why are we just assuming that all of these people are now suddenly running for cover? Because it feeds into the worldview of those holding a 50/50 portfolio who have secretly regretted it while the market is going up. Some hold a 50/50 and are happy with it and that's fine. It's the one's who regre...
by Cyclesafe
Fri Dec 21, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: "Guess What? It May Actually Be Different This Time" Morningstar
Replies: 8
Views: 2182

Re: "Guess What? It May Actually Be Different This Time" Morningstar

Misleading title. The article refers to whether an investor is now ready to or now just beginning retirement. If so, this wouldn't have been true the last time (2008-9) and the calculus is now (possibly) different. This is Christine Benz's/Morningstar's exact title, hence the quotes. https://www.mo...
by Cyclesafe
Fri Dec 21, 2018 7:57 pm
Forum: Investing - Theory, News & General
Topic: "Guess What? It May Actually Be Different This Time" Morningstar
Replies: 8
Views: 2182

Re: "Guess What? It May Actually Be Different This Time" Morningstar

Misleading title.

The article refers to whether an investor is now ready to or now just beginning retirement. If so, this wouldn't have been true the last time (2008-9) and the calculus is now (possibly) different.
by Cyclesafe
Fri Dec 21, 2018 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Just another noob worrying about the crash
Replies: 32
Views: 3694

Re: Just another noob worrying about the crash

You "know the company quite well" when you are an insider trading on not-yet-public information. Ask Martha Stewart how that turned out.... Nobody will be "attacking" you about being so heavy in one company. My biggest stress reducer after losing my job was that I was free to unwind a mandatory subs...
by Cyclesafe
Fri Dec 21, 2018 9:14 am
Forum: Investing - Theory, News & General
Topic: Bear Market - Mindset Expectations
Replies: 61
Views: 6166

Re: Bear Market - Mindset Expectations

Pundits look at what happens and devise a rationale. Whether their explanation is right or wrong is unimportant because it is likely irrelevant . Only one thing is important: are cash flow needs addressed. That's it. Easy peasy. Short term, cash flow is determined by income and one's emergency fund....
by Cyclesafe
Wed Dec 19, 2018 1:26 pm
Forum: Personal Consumer Issues
Topic: Pesticides for residence
Replies: 26
Views: 1669

Re: Pesticides for residence

https://store.doyourownpestcontrol.com/?gclid=EAIaIQobChMIod2JucKs3wIVEhx9Ch0nMAWyEAAYASAAEgKCuvD_BwE Easy-peasy. Invest in some rubber gloves and a face shield. Always wear long sleeves and long pants and wash immediately after use. Use all pesticides with the assumption that some day they will be ...
by Cyclesafe
Wed Dec 19, 2018 10:13 am
Forum: Investing - Theory, News & General
Topic: Why did you decide to change your asset allocation?
Replies: 45
Views: 1983

Re: Why did you decide to change your asset allocation?

Will going from 80/20 to 70/30 really make much difference either to the probable range of outcomes or to your ability to sleep? I think not. Staying put on equity and shifting new money to fixed will make you feel like you are doing something, but would be of real benefit if it keeps you from selli...
by Cyclesafe
Wed Dec 19, 2018 9:31 am
Forum: Personal Consumer Issues
Topic: Kitchen refresh/remodel ideas
Replies: 36
Views: 2449

Re: Kitchen refresh/remodel ideas

Just finished a $65k to-the-studs kitchen renovation. This was with reusing all of the appliances, flooring, and layout and doing most of the labor ourselves. What we learned: 1) High-end renovators (the kind with public seminars) seek clueless HDTV-addled dimwits who will blindly overpay for a drea...
by Cyclesafe
Tue Dec 18, 2018 1:22 am
Forum: Personal Consumer Issues
Topic: Confused by cruise gratuities
Replies: 51
Views: 4056

Re: Confused by cruise gratuities

The sticker price for a cruise is the "come on" to get you on board. The actual cost, you'll find, is the morally obligatory "tip" for everyone you run into both on board and on shore. All excursions - overpriced activities when you're off the ship - are additional as well. Plan to pay a multiple of...
by Cyclesafe
Mon Dec 17, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: What type of bond investor are you?
Replies: 35
Views: 2716

Re: What type of bond investor are you?

nisiprius wrote:
Mon Dec 17, 2018 7:06 am
For me, bonds are a volume control that let me adjust the volatility of my entire portfolio so it isn't too loud for me.
Great analogy. Thank you.
by Cyclesafe
Sat Dec 15, 2018 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Law school without practicing law
Replies: 79
Views: 5826

Re: Law school without practicing law

I went full time to a second tier law school when I was "reinventing myself" at age 45. In retrospect, I had absolutely no idea what a practicing lawyer actually does - especially for one that graduates below the top 10%. Fortunately, for me it was affordable and I had a tremendous time. I spent sum...
by Cyclesafe
Thu Dec 13, 2018 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Home improvements and taxes
Replies: 9
Views: 971

Re: Home improvements and taxes

I am following this because I have related questions. I am unsure which home improvements would be considered "improvement" versus replacement or maintenance. My house is 30 years old and I am thinking about selling in a few years. Examples: Replaced original roof with same type of roof, but higher...
by Cyclesafe
Thu Dec 13, 2018 9:45 am
Forum: Investing - Theory, News & General
Topic: Is Vanguard Advisors Fiduciary? Fiduciary Rule is dead?
Replies: 6
Views: 849

Re: Is Vanguard Advisors Fiduciary? Fiduciary Rule is dead?

How does Vanguard Advisors qualify as a fiduciary when they only recommend their own investment products and won't consider or discuss your other holdings? They have started spamming me. As someone who started investing with them in the 1980s I have to say I dislike the direction they are going wit...
by Cyclesafe
Wed Dec 12, 2018 5:03 pm
Forum: Investing - Theory, News & General
Topic: Which Vanguard California Muni fund?
Replies: 5
Views: 549

Re: Which Vanguard California Muni fund?

One consideration is that many munis are callable. When interest rates came down, I expect bonds with higher coupons - especially longer term bonds - were called.
by Cyclesafe
Wed Dec 12, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: Early retirement mistakes???
Replies: 37
Views: 6326

Re: Early retirement mistakes???

At the risk of sounding negative, I would rally like to hear from those brave enough to tell lessons learned by retiring too early. *Did you underestimate the amount needed? Not the total. *Did you misjudge healthcare costs? I thought my costs would go down dramatically with Medicare. With IRMAA my...
by Cyclesafe
Tue Dec 11, 2018 7:21 pm
Forum: Investing - Theory, News & General
Topic: Vangurad's 2019 Economic and Market Outlook
Replies: 27
Views: 2903

Re: Vangurad's 2019 Economic and Market Outlook

By Vanguard's research team. Very detailed. Brief Summary: Portfolio implications: A low return orbit Investors have experienced spectacular returns over the last few decades because of two of the strongest equity bull markets in U.S. history, in addition to a secular decline in interest rates from...
by Cyclesafe
Tue Dec 11, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Home improvements and taxes
Replies: 9
Views: 971

Re: Home improvements and taxes

Keep receipts. Make sure that these are discrete improvements / obvious upgrades and not merely replacements-in-kind. Keep before and after pictures too. Whether or not these "capital improvements" will be deemed appropriate to increase basis cannot easily be determined in advance....
by Cyclesafe
Tue Dec 11, 2018 4:04 pm
Forum: Investing - Theory, News & General
Topic: How to avoid dividends in taxable account
Replies: 1
Views: 5412

Re: How to avoid dividends in taxable account

Thank you for this post. I've been wondering about this too.
by Cyclesafe
Tue Dec 11, 2018 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: The new 1040 is certainly different
Replies: 10
Views: 2232

Re: The new 1040 is certainly different

Cyclesafe wrote:
Tue Dec 11, 2018 3:59 pm
Cyclesafe wrote:
Tue Dec 11, 2018 3:36 pm
michaeljc70 wrote:
Tue Dec 11, 2018 2:07 pm
Cyclesafe wrote:
Mon Dec 10, 2018 10:08 pm
For fun also entered 2018 numbers into 2017 TurboTax. Saved $15k.
I'm not following. Saved 15k over what? Using 2018 forms?
Saved $15k with 2019 2018 tax scheme vs what I would have paid in 2018 2017.
OOPS. Fixed the above....
by Cyclesafe
Tue Dec 11, 2018 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: The new 1040 is certainly different
Replies: 10
Views: 2232

Re: The new 1040 is certainly different

michaeljc70 wrote:
Tue Dec 11, 2018 2:07 pm
Cyclesafe wrote:
Mon Dec 10, 2018 10:08 pm
For fun also entered 2018 numbers into 2017 TurboTax. Saved $15k.
I'm not following. Saved 15k over what? Using 2018 forms?
Saved $15k with 2019 2018 tax scheme vs what I would have paid in 2018 2017.
by Cyclesafe
Tue Dec 11, 2018 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Not accepting Medicare benefits
Replies: 24
Views: 4141

Re: Not accepting Medicare benefits

I have recently discovered that IRMAA for parts B and D will amount to an annual $8,851 extra payment (MFJ) for my Medicare starting at age 65 for both of us in 2019. The total cost (including Plan G Medigap and Part D coverage) of $19k is only slightly lower than the unsubsidized coverage of $22k q...
by Cyclesafe
Tue Dec 11, 2018 10:43 am
Forum: Personal Consumer Issues
Topic: Participant Interests (Not) Aligned with Medicare Advantage Plans?
Replies: 7
Views: 542

Re: Participant Interests (Not) Aligned with Medicare Advantage Plans?

Everything depends on the quality of the Medicare Advantage network in your area. If the "specialists" in their network would be the one's you'd go to regardless, and if you are confident that you'd get a referral from your primary, then the MAP may be the way to go. OTOH if you would prefer to not ...
by Cyclesafe
Tue Dec 11, 2018 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Taxable or Tax-Exempt Bonds
Replies: 20
Views: 1465

Re: Taxable or Tax-Exempt Bonds

fairly low tax bracket for tax exemtp until marginal rate is 30s But if you do the math, you will see that tax-exempt can make sense even in the 22% bracket. What are you basing your statement on? Conventional wisdom? At 22% muni contribution could be for diversification and to keep AGI lower for s...
by Cyclesafe
Tue Dec 11, 2018 9:32 am
Forum: Investing - Help with Personal Investments
Topic: Tax-Exempt Bonds for a 22%/24% Marginal Tax Rate?
Replies: 5
Views: 864

Re: Tax-Exempt Bonds for a 22%/24% Marginal Tax Rate?

I will say, having managed an older relative's portfolio, that munis might end up being better when you go on Medicare and start having to pay the IRMAA premiums. But that's not something you need to worry about for right now. Unfortunately, tax exempt interest is added to adjusted gross income to ...
by Cyclesafe
Mon Dec 10, 2018 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-Exempt Bonds for a 22%/24% Marginal Tax Rate?
Replies: 5
Views: 864

Re: Tax-Exempt Bonds for a 22%/24% Marginal Tax Rate?

Bond funds with similar duration have similar risk with regard to changes in interest rates, but differ in specific risk. Corporate bonds correlate moderately with equity, federal obligations are mostly risk free as the feds can (and do!) print money, and muni's depend on solvency and ability to tax...
by Cyclesafe
Mon Dec 10, 2018 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: New Retiree Investment Strategy
Replies: 21
Views: 2309

Re: New Retiree Investment Stratedgy

The best way to take advantage of the wisdom on this board is to utilize the format posted as a sticky here:

viewtopic.php?f=1&t=6212