Search found 239 matches

by nun
Mon Feb 05, 2024 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard’s confusing 1099-DIVs
Replies: 40
Views: 6050

Re: Vanguard’s confusing 1099-DIVs

HeavyChevy wrote: Sun Feb 04, 2024 8:20 am Turbotax or equivalent has provided value to me over the last 15 years. Everything downloaded directly from Vanguard, Fidelity, etc.

Glad you figured things out.
I understood that I'd get 2 DIVs from Vanguard for this year, but it was the difference in format that was confusing. The mutual fund format broke out each fund on the DIV whereas the brokerage DIV consolidates them and just reports the totals for the entire account. When I just entered another DIV form in Turbo tax for the consolidated DIV this became very easy...no calculator needed.
by nun
Sun Feb 04, 2024 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard’s confusing 1099-DIVs
Replies: 40
Views: 6050

Re: Vanguard’s confusing 1099-DIVs

Ah I’ve had a realization. I don’t need to break out the DIV numbers into individual funds, I can just enter the consolidated DIV numbers all together, that actually makes things simpler….’y Homer Simpson “Doh!’ Moment of the day.
by nun
Sat Feb 03, 2024 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard’s confusing 1099-DIVs
Replies: 40
Views: 6050

Vanguard’s confusing 1099-DIVs

This year my Vanguard accounts were change to fully brokerage because of some internal admin stuff. I imagine this happened to all the folks who had just ignored it up to that point. This resulted in me getting two 1099-DIVs. One is the familiar simple to follow one and the other is a consolidated 1099-DIV which is organized very inconveniently. After much work on my calculator I think I have things right now, but come on Vanguard make this more obvious.
by nun
Tue Jan 30, 2024 10:19 am
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

I find the TIAA website pretty poor and confusing. So if you have questions I would give them a call or get an appointment at a service center.
by nun
Mon Jan 29, 2024 7:04 pm
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

OP, I was in your same exact shoes (except I'm somewhat older). I had about $60,000 in Tiaa accounts for which I'd have to take the funds out over 10 years, or annuitize. Similarly, I didn't need the funds and have significantly more in other Tiaa-Cref accounts, and elsewhere. But I didn't want to leave the money encumbered. I chose to annuitize. Parenthetically, the process of annuitizing was easy. I worked with my local team. They sent me all the forms by FedEx and then I had a long phone call with the person who makes things happen on their systems. We went through each page, noting what to sign and what not to sign, what to notarize, etc. After all was filled out and notarized, I scanned and uploaded it. The monthly deposits started sh...
by nun
Mon Jan 29, 2024 2:30 pm
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

OP, I was in your same exact shoes (except I'm somewhat older). I had about $60,000 in Tiaa accounts for which I'd have to take the funds out over 10 years, or annuitize. Similarly, I didn't need the funds and have significantly more in other Tiaa-Cref accounts, and elsewhere. But I didn't want to leave the money encumbered. I chose to annuitize. Parenthetically, the process of annuitizing was easy. I worked with my local team. They sent me all the forms by FedEx and then I had a long phone call with the person who makes things happen on their systems. We went through each page, noting what to sign and what not to sign, what to notarize, etc. After all was filled out and notarized, I scanned and uploaded it. The monthly deposits started sh...
by nun
Mon Jan 29, 2024 10:54 am
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

Just pulled the trigger on my TIAA traditional and decided to start the annuity. Chose the 3/4 to participating annuitant with 10 year certain. If I pass first my DW will get 3/4 the amount and if see passes first I will contine to get the full amount. If we both pass during the 10 year certain period my children will each get a portion of the monthly payout until the 10 years pass. I had considered the other payout options but this made the most sense given our situation. My payout rate was slightly above 10% but I'm a 72 yo male. This account was from the mid 80's and has been sitting there for the past 40 years. It only accounted for about 7% of my portfolio. We didn't especially need the income stream but added to our social security i...
by nun
Sun Jan 28, 2024 5:54 pm
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

... but a 9.45% payout rate made me reconsider - that's at the level where the conventional wisdom that "all annuities are bad" breaks down for me, or at least sends me to a spreadsheet to do some comparisons. At what point does a payout rate start to make an annuity attractive to the naysayers? It's significant that your primary stated reason for starting this lifetime/2-lifetime? income stream is overwhelmingly, let's say, the Rate of Return on the principal to be invested in the stream. It seems like the often-expressed concerns about life annuities are not factors: Will I lose my "bet" with the insurance company if I get hit by a bus? Will inflation reduce the real value of my payout? Do I have other investments to ...
by nun
Sat Jan 27, 2024 4:05 pm
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

FYI, I've run some spreadsheets and basically getting 9.45% payout at age 63 and assuming I live to my actuarial life expectancy...say 83...its an IRR of 7.5%. This also comes with a 10 year guarantee so not a disaster if I die young when IRR without it would be massively negative.Image
by nun
Sat Jan 27, 2024 10:04 am
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

I looked at some of my retirement illustrator scenarios for turning my current TIAA Traditionals funds into lifetime income. I also compared to an existing annuity I had from two years ago. I see that the payout varies quite a bit with both the choice of particular single or joint annuities, perhaps the vintage, and current interest rates. If I were to annuitize my current holdings, only of recent vintage (about a year or two), a single life annuity guaranteed for 10 years would have a payout rate of 8.83% while a joint life annuity for the same guaranteed term would be 6.33%. In contrast, the annuity I signed up for two years ago, single life for 15 years had an estimated payout rate of 6.95%, and some of those funds had vintages going ba...
by nun
Sat Jan 27, 2024 10:02 am
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

The TIAA income annuity payout still is preferable, but there is one difference: the commercial SPIA is insured by the state guarantee pool in the state of residence of the annuitant. A TIAA group retirement plan does not have that backing. Perhaps you were referencing a different matter, but it shows here that TIAA is a member of state guaranty associations in all 50 states. https://www.tiaa.org/public/pdf/How_TIAA_Supports_Guarantees.pdf OP: What an outstanding rate! DW and I annuitized a portion of our Traditional amounts nearly 5 years ago. We were both delaying Social Security until 70 and annuity payments form about 20% of our expense floor. We did not receive such a good rates but we are very happy with the annuities. After giving u...
by nun
Sat Jan 27, 2024 8:07 am
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

ralph124cf wrote: Sat Jan 27, 2024 5:20 am Does anybody have a record of what annuity payouts TIAA has offered in the past? This seems unusually generous, and may be an anomaly that should be jumped on before it disappears.
It's an anomaly in as much as interest rates are higher than they've been for a while and my bonus for contributions made in the late 1980s is at 2%, but my reason for posting is exactly, should it be jumped on.
by nun
Fri Jan 26, 2024 7:25 pm
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

Yes, I have lots of options; interest only; 10 year payout; single life annuity etc...probably too many options.
by nun
Fri Jan 26, 2024 5:07 pm
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

Yes, there's no way I can (or would) buy a SPIA on the commercial market. My choices are to just leave my TIAA-Traditional alone compounding right now at 5%, take a 10 year payout and invest it with Vanguard or take the single life annuity and probably invest that as well as I don't need more income. There’s no single right answer. If you think that you might want a guaranteed monthly income at some time, I’d suggest that you keep your options open. You’d leave it in the Traditional and make a decision about annuitizing at some future date. If you’re confident you won’t want a monthly income, then (a) leave it in traditional if you want “fixed income” exposure or (b) take the 9.45% lifetime annuity and invest in Vanguard equity funds if yo...
by nun
Fri Jan 26, 2024 3:25 pm
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

Re: TIAA single life annuity payout of 9.45% - OMG!

I have an old "zombie" account (about 30 years old) with TIAA that has about $60k in TIAA Traditional. I was looking at closing it out now that I'm retired and comparing the 10 year payout and a single lifetime annuity. I don't need the income I just wanted to tidy things up, but the payout on the single life annuity starting at age 63 (ie in 2024 for me) is 9.45% - I get a 2% bonus. I would normally have taken the 10 year payout ($7700 /year) and just invested the money in a general account, but the 9.45% for life looks like a good bet. What would you do? A life-only annuity for a 63 year old female (that’s what I assume you are) With a $60,000 single premium would pay $355 per month per immediateannuities.com. That’s $4260 per ...
by nun
Fri Jan 26, 2024 12:53 pm
Forum: Personal Investments
Topic: TIAA single life annuity payout of 9.45% - OMG!
Replies: 35
Views: 6955

TIAA single life annuity payout of 9.45% - OMG!

I have an old "zombie" account (about 30 years old) with TIAA that has about $60k in TIAA Traditional. I was looking at closing it out now that I'm retired and comparing the 10 year payout and a single lifetime annuity. I don't need the income I just wanted to tidy things up, but the payout on the single life annuity starting at age 63 (ie in 2024 for me) is 9.45% - I get a 2% bonus. I would normally have taken the 10 year payout ($7700 /year) and just invested the money in an IRA, but the 9.45% for life looks like a good bet. What would you do?
by nun
Fri Mar 15, 2019 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Massive Increase in Long Term Care Insurance for My Parents - Can They?
Replies: 65
Views: 6759

Re: Massive Increase in Long Term Care Insurance for My Parents - Can They?

rgs92 wrote: Fri Mar 15, 2019 12:50 pm Those premium amounts, even the larger ones, are very low and a bargain. So I would definitely hold on to the policy.
Normal premiums are about $200-$500 per person per month in middle age for realistic benefits.
I'm lucky then. When I was in my late 30s I bought a MetLife plan that will pay $300/day up to a total of $360k and I pay $28/month. I'm in my late 50s now and my plan is that if I need LTC it will help pay some of the cost and as the average stay in LTC is less than 3 years the cap should be ok
by nun
Thu Mar 14, 2019 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Planning
Replies: 94
Views: 9023

Re: Estate Planning

A well-qualified estate lawyer would probably have the best suggestions. +1 There is a difference in being frugal and being cheap. Being cheap is thinking I can "figure out" estate planning myself while hoping I'm not leaving any holes for my executor to have to clean up. I wouldn't attempt to "figure out" how to pull my own teeth, and I'm not going to attempt to "figure out" how to do estate planning from people on the internet. I'll use a professional to set up trusts etc. I can gift money to my heirs before I die and to charities in my will. So I have an idea of some strategies, but I'd like to learn a bit more before I walk into a lawyers office so I know that I'm getting good advice. So I'm interested in ...
by nun
Thu Mar 14, 2019 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Planning
Replies: 94
Views: 9023

Re: Estate Planning

I'm not worried about the federal estate taxes...$11M threshold is more than enough. But in MA the estate tax kicks in for a single tax payer at $1M. If I was to die today with my estate valued at around $2M then there would be a $200k MA state estate tax bill to pay. I'm already doing IRA to ROTH rollovers and I think I'll look at insurance as a way to pass on wealth tax free, but maybe the long term plan will be to hope I live a while longer and can move to NH when I'm 80. You mentioned that you would be gifting money to relatives. Are you aware that gifts get added back into the estate to calculate the MA estate tax? Since no one knows when death will occur, I would do your planning according to MA law and amend later if you move to NH....
by nun
Tue Mar 12, 2019 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Planning
Replies: 94
Views: 9023

Re: Estate Planning

A well-qualified estate lawyer would probably have the best suggestions. +1 There is a difference in being frugal and being cheap. Being cheap is thinking I can "figure out" estate planning myself while hoping I'm not leaving any holes for my executor to have to clean up. I wouldn't attempt to "figure out" how to pull my own teeth, and I'm not going to attempt to "figure out" how to do estate planning from people on the internet. I'll use a professional to set up trusts etc. I can gift money to my heirs before I die and to charities in my will. So I have an idea of some strategies, but I'd like to learn a bit more before I walk into a lawyers office so I know that I'm getting good advice. So I'm interested in ...
by nun
Tue Mar 12, 2019 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Planning
Replies: 94
Views: 9023

Re: Estate Planning

I'm not worried about the federal estate taxes...$11M threshold is more than enough. But in MA the estate tax kicks in for a single tax payer at $1M. If I was to die today with my estate valued at around $2M then there would be a $200k MA state estate tax bill to pay. I'm already doing IRA to ROTH rollovers and I think I'll look at insurance as a way to pass on wealth tax free, but maybe the long term plan will be to hope I live a while longer and can move to NH when I'm 80.
by nun
Tue Mar 12, 2019 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Planning
Replies: 94
Views: 9023

Re: Estate Planning

So as others have asked..... What do you want to happen to your money after you are gone? How much do you want to give away now? How much do you want to protect it from fairly low-probability risks after you are gone? I have a will that leaves most of my estate to my 3 nieces and an old retirement plan to my ex-wife. I've also named a couple of charities. I think there may be better ways to give to the charities than just leaving them money in the will by using trusts or life insurance.....I'll probably need a professional for that, but I want to understand the startegies. Two solutions would be to move to a state with a higher estate tax threshold or to get married and double the threshold....assuming that I don't marry someone in a simil...
by nun
Tue Mar 12, 2019 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Planning
Replies: 94
Views: 9023

Re: Estate Planning

I'm always surprised that estate planning questions get such limited answers. It's an area where many Bogleheads might need some help and personal knowledge helps when seeking professional help. I've just done some reading about state estate taxes and an easy solution to my problem would be to move to another state with a more generous estate tax threshold. So I think my plan will be to start gifting to my heirs and leave some to charities in my will as this will reduce the tax bill quite a bit for now and then if the money grows by a lot I'll sell up and move to another state.
by nun
Tue Mar 12, 2019 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Planning
Replies: 94
Views: 9023

Re: Estate Planning

A well-qualified estate lawyer would probably have the best suggestions. +1 There is a difference in being frugal and being cheap. Being cheap is thinking I can "figure out" estate planning myself while hoping I'm not leaving any holes for my executor to have to clean up. I wouldn't attempt to "figure out" how to pull my own teeth, and I'm not going to attempt to "figure out" how to do estate planning from people on the internet. I'll use a professional to set up trusts etc. I can gift money to my heirs before I die and to charities in my will. So I have an idea of some strategies, but I'd like to learn a bit more before I walk into a lawyers office so I know that I'm getting good advice. So I'm interested in ...
by nun
Tue Mar 12, 2019 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Planning
Replies: 94
Views: 9023

Massachusetts Estate Planning

I'm in the nice position of being retired and pretty comfortable.
I've paid off the mortgage and the house is worth around $1M and I have another $2M in 401ks, IRAs, taxable accounts.
I live of rent from a downstairs apartment and a defined benefit pension so the size of my portfolio keeps growing.
I'm in my 50s and have a will and live in a state with a $1M estate tax threshold. I anticipate that before I
die I might be nudging the federal inheritance tax limits and as I'm already above my state estate tax limit I need to do some
estate planning to pass on money without paying vast amounts of estate tax.

So does anyone have practical advice of how to structure things. ie put the house and other things in trust, gift money etc
by nun
Sun Mar 20, 2016 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Physics major question
Replies: 53
Views: 7092

Re: Physics major question

flyingbison wrote: The average for Physical Sciences is 96K for full professor, and 73K for assoc. professor. Obviously there are are some making much more than that, but by definition those in the "upper limit" of the field are outliers and there are not very many of them.
My experience of working at a couple of large government labs and two east coast universities is that the salaries for senior scientists and full professors are higher than the averages in the survey. Now there will be demographic and geographical biases, but in my mid-30s (20 years ago) I was earning $75k as a Principal Scientist and started as an Associate Professor 7 years later at $110k.
by nun
Thu Mar 17, 2016 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Physics major question
Replies: 53
Views: 7092

Re: Physics major question

If he wants to go on for a PhD in Physics, selecting his sub-field ahead of time is crucial. Some sub-fields are highly employable in industry, and some are not. One with which I am familiar is MRI Physics. This field (about how Magnetic Resonance Imaging works) is a very practical one, and there are many positions at manufacturers of MRI equipment -- not just GE and Siemens, but companies that support scanners as well. And academic/medical/research institutions using MRI in more than any cookie-cutter way need support physics staff to keep their MRI scanners up-to-date. MRI Physics is based on a combination of basic math (Fourier transforms), physics (electromagnetism and a little quantum mechanics) and practical skills (electronics and &...
by nun
Thu Mar 17, 2016 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Physics major question
Replies: 53
Views: 7092

Re: Physics major question

... There are plenty of tenured professors earning $250k and higher. ... Unless that was a typo and you meant 150K, I'd say there are actually very, very few (and there aren't even many at 150K). It really depends on where you are working. I earned $145k/year as an Associate Professor at a large state school in my mid 40s and I know many of my more senior colleagues were earning over $200k and the head of department got $350k You were outliers, and there aren't very many of you: http://www.cupahr.org/surveys/fhe4-tenure-surveydata-2015.aspx I see some average salaries in the physical sciences and engineering at around $130k. Now we are talking about wide range of research universities across the country and so the average salary will not t...
by nun
Thu Mar 17, 2016 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Physics major question
Replies: 53
Views: 7092

Re: Physics major question

flyingbison wrote:
Jack FFR1846 wrote:... There are plenty of tenured professors earning $250k and higher. ...
Unless that was a typo and you meant 150K, I'd say there are actually very, very few (and there aren't even many at 150K).
It really depends on where you are working. I earned $145k/year as an Associate Professor at a large state school in my mid 40s and I know many of my more senior colleagues were earning over $200k and the head of department got $350k
by nun
Thu Mar 17, 2016 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Physics major question
Replies: 53
Views: 7092

Re: Physics major question

The opportunities to do straight physics in a commercial setting are getting more limited as the likes of GE and AT&T don't have big US R&D organizations vacuuming up physics grads anymore. So the physicist has to sell themselves on their analytical thinking and problem solving abilities and if they can code and do some basic electronics like Arduino or other micro-controller stuff they will walk into many jobs. There are still many opportunities in defense and at the large Government labs. An academic career is probably going to require a Ph.D and I would only recommend it for the most dedicated of people.
by nun
Tue Mar 08, 2016 3:33 pm
Forum: Personal Investments
Topic: Lifetime Income Strategy (LIS) within mega corp 401(k)?
Replies: 10
Views: 1965

Re: Lifetime Income Strategy (LIS) within mega corp 401(k)?

It still sounds like a variable annuity and the more "features" you get the more it costs. Sure you might be able to get at your money, but at what cost. The only annuity I would ever consider buying would be a Single Premium Immediate Annuity to augment SS and provide a guaranteed base income.
by nun
Tue Mar 08, 2016 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: We paid off our mortgage ...what to do with the extra money each month?
Replies: 28
Views: 5290

Re: We paid off our mortgage ...what to do with the extra money each month?

Either put the mortgage into a taxable low cost index funds or buy a rental property.....
by nun
Tue Mar 08, 2016 12:51 pm
Forum: Personal Investments
Topic: Lifetime Income Strategy (LIS) within mega corp 401(k)?
Replies: 10
Views: 1965

Re: Lifetime Income Strategy (LIS) within mega corp 401(k)?

This sounds like a variable annuity...and has the fees to match....which you convert to a lifetime annuity when you retire. I'd continue as you are and adjust your AA as you get older yourself. It's easy to do and is far less expensive than getting someone else to do it for you. If you want guaranteed lifetime income at some point you can shop around for annuities when the time comes.
by nun
Wed Nov 11, 2015 3:48 pm
Forum: Personal Investments
Topic: Pension buy in?
Replies: 6
Views: 1053

Re: Pension buy in?

The MA plan is mostly funded by the employees and isn't very generous which contributes to it poor grade. The legislature has enacted reforms that require them to make up delinquent contributions and which will reduce the pension benefits for new employees. The funding percentage as of 2015 will be 70% and going up. I have no worry about the ability or commitment of MA to pay my pension.

The "good value" of the pension comes out of a quirk of the buy in legislation not intended when the law was written. I have checked and rechecked the numbers with the pension administrators and even asked my state rep to bring the "quirk" to the administrations attention. Everything has been verified.
by nun
Wed Nov 11, 2015 10:11 am
Forum: Personal Investments
Topic: Pension buy in?
Replies: 6
Views: 1053

Pension buy in?

I am a single male, aged 54, and will be retiring at age 55. I have the opportunity to buy into the MA state pension plan. The numbers stack up like this:

Cost: $183k
Annual Income at 55 : $19.6k
COLA: first $13k got 3% increase last year. The state decides on the COLA base amount and percentage each year.

What do you think?
by nun
Tue Nov 03, 2015 11:03 pm
Forum: Personal Investments
Topic: Please critique my retirement asset allocation
Replies: 8
Views: 1183

Re: Please critique my retirement asset allocation

Actually I only need to generate that $6k (plus something for inflation) for 12 years as my UK social security starts at age 67 and then US social security will start at 70. My plan is to let my equity allocation drift upwards. I could transfer 10% of TIAA-Traditional each year into a stock index fund, but frankly I like the guaranteed 4%.
by nun
Tue Nov 03, 2015 11:19 am
Forum: Personal Investments
Topic: Please critique my retirement asset allocation
Replies: 8
Views: 1183

Re: Please critique my retirement asset allocation

If your goal AA is 65/35 (and I think that can be deemed reasonable) than I think your fine. If stocks lose value, are you prepared to re-balance within your 401a account (sell TIAA-Traditional and buy a stock index fund)? Can you do this, Im not all that familiar with TIAA? I think you stand to benefit from learning a great deal about tax planning. You seem like you could really save a lot on taxes by strategically converting traditional IRA balances to Roth balances over the years. TIAA Traditional is locked up for 10 years so rebalancing is a slow process. Anyway I like the 4% interest and can take that at anytime. If stocks lose value I'll just take interest from TIAA-Traditional and pay the income tax rather than selling at a loss. I ...
by nun
Tue Nov 03, 2015 10:59 am
Forum: Personal Investments
Topic: Please critique my retirement asset allocation
Replies: 8
Views: 1183

Re: Please critique my retirement asset allocation

The $30k is in the bank and is just spending money.

My plan is to use the taxable account in good times, but if there is a significant correction I'll simply reduce my spending a bit and take a little income from the TIAA-Traditional and pay the income tax. As I only need to produce around $6k a year, once the pension begins next year, I feel that I can be heavily invested in equities. I can see an argument for keeping a little more in cash/CDs to cover any unexpected expenses during a market down turn. I am interested in people's thoughts about abandoning bonds in favor of TIAA-Traditional as the sole fixed income component of a retirement portfolio.
by nun
Tue Nov 03, 2015 9:02 am
Forum: Personal Investments
Topic: Please critique my retirement asset allocation
Replies: 8
Views: 1183

Please critique my retirement asset allocation

I'm interested to see what the Bogleheads have to say bout my asset allocation for retirement. I've been retired for 18 months now and here are my particulars: Debt: 0$ Tax Filing Status: single Age: 54 Annual income needs: $40k Cash: $30k Rental Income: $14.5k COLA pension at 55: $20k US SS at 70: $25k UK SS at 66: $15k Taxable Accounts VTSAX (US stock index): $150k VTIAX: (international index) $41k IRA VTSAX(US stock index) : $278k VTIAX (International index): $73k VBIAX (Balanced index, 60% stocks) : $36k VGSLX (REIT): $34k ROTH VTSAX (US stock index): $75k 401a TIAA-Traditional @ 4% interest: $320k So I have a 65/32/3 (equity/fixed/cash) asset allocation My plan is to spend the taxable down and keep my taxable income below the 15% tax b...
by nun
Fri Mar 13, 2015 8:11 am
Forum: Non-US Investing
Topic: Portfolio advice. Jordan/Int'l resident (no US tax treaty)
Replies: 79
Views: 19959

Re: Portfolio advice. Jordan/Int'l resident (no US tax treat

Have you researched how Ireland taxes Irish sourced income owned by non-residents.....and how Jordan taxes foreign investments owned by it's residents? Are there provisions in domestic law for foreign tax credits or any restrictions to owning foreign investment funds?
by nun
Thu Mar 12, 2015 12:01 pm
Forum: Personal Investments
Topic: TIAA Traditional Annuity as sole fixed income component
Replies: 84
Views: 18888

Re: TIAA Traditional Annuity as sole fixed income component

If you have TIAA-Traditional with the guaranteed 3% minimum and a fairly long vintage history I can't think of a much better fixed income thing to have. Right now I'm getting 4.73% in my TIAA-Traditional account. There are plenty of withdrawal options and I just think of it like a 10 year CD that will probably beat many bond funds over the next 10 years. I've actually sold some intermediate bond funds recently, but I'm hanging on to TIAA-Traditional
by nun
Tue Mar 10, 2015 10:29 am
Forum: Non-US Investing
Topic: Investing As An Expat [Europe, Asia, Australia]
Replies: 11
Views: 2133

Re: Investing As An Expat

Currently I don't pay any German taxes, because I'm resident in Taiwan. According to government of Taiwan, there's a tax agreement. http://www.dot.gov.tw/en/home.jsp?serno=200912160009&mserno=200912160006&menudata=EnMenu&contlink=content/treaty.jsp As of 25 December, 2012, there are 25 comprehensive income tax treaties and 14 international transportation income tax agreements which have been signed and brought into force. All tax treaties are listed below: 1.Comprehensive income tax treaties which cover all income flows:  (1)Asia: India, Indonesia, Israel, Malaysia, Singapore, Thailand, Vietnam.  (2)Oceania: Australia, New Zealand.  (3)Europe: Belgium, Denmark, France,Germany, Hungary, Macedonia,         the Netherlands ,Slovak...
by nun
Tue Mar 10, 2015 12:29 am
Forum: Personal Investments
Topic: How to create a 3% return portfolio?
Replies: 52
Views: 8342

Re: How to create a 3% return portfolio?

The 30/70 *may* get 3-4% on average, but it's the variability that is consuming the OP. There is a reason why a 3% SWA is *not* supported with such a portfolio with anywhere close to a 100% success probability according to the monte carlo simulators. I take the OP at their word -> the OP is fixated (unhealthily so, in my opinion) on not spending any principal while ignoring the very real threat that, by doing so, the OP will end up losing buying power due to inflation. Given that constraint, I'm not sure what else to recommend. The 10 year 3% brokered CD is not a bad idea, but I would rather have had a ladder set up 10 years ago to mitigate the inflation risk. Rising rates kills the CD value and loses in real value, particularly given the ...
by nun
Mon Mar 09, 2015 6:22 pm
Forum: Personal Investments
Topic: How to create a 3% return portfolio?
Replies: 52
Views: 8342

Re: How to create a 3% return portfolio?

rocko wrote:Has anyone purchase annuities through Vanguard? Does this provide an extra level of security or are they simply brokers?

Thanks.
Vanguard don't sell the annuities themselves, you get quotes from big insurance companies like Principal and Omaha, but if you have a pension you probably don't need an SPIA as well
by nun
Mon Mar 09, 2015 6:20 pm
Forum: Personal Investments
Topic: How to create a 3% return portfolio?
Replies: 52
Views: 8342

Re: How to create a 3% return portfolio?

Pension = non adjusted cost of living As to SPIA... any advantage to using Vangurad's service? I know you need to be very careful with annuities. Anyone with experience care to comment on this approach to retirement funds? Worst case examples? If you already have a pension then an SPIA might not be appropriate. How much of your spending is covered by the pension? If you haven't taken SS yet then waiting until 70 is a great way to increase your guaranteed income. Right now with 30/70 you are probably pretty good for a 3% or 4% return. Using past performance in tools like portfoliovisualizer might be a bit optimistic, particularly for you bonds. I think you need to come up with a plan of what you'll do in a bid bond/stock downturn when takin...
by nun
Mon Mar 09, 2015 11:45 am
Forum: Non-US Investing
Topic: Non-resident alien, 22 looking for substitutes to 401k/IRAs
Replies: 6
Views: 1243

Re: Non-resident alien, 22 looking for substitutes to 401k/I

The US has tax treaties with most countries and retirement accounts are often well covered so you can maintain them in the US and keep the tax deferral until you retire... This does not defuse the US estate tax landmine. If you move back home and then have the poor judgement to die before retiring and while holding a US 401k the odds are that the US will demand a slice of it. As noted above there are fewer than twenty US estate tax treaties in existence. And for non-resident aliens, US estate taxes kick in at just $60k. That's only just over 1% of the allowance the US gives to its own citizens. Worse, it carries no marital deduction unless your spouse happens to be a US citizen. Estate taxes could be an issue, but without more detail about...
by nun
Mon Mar 09, 2015 11:35 am
Forum: Non-US Investing
Topic: Investing As An Expat [Europe, Asia, Australia]
Replies: 11
Views: 2133

Re: Investing As An Expat

Let's say I fund my interactive broker account with an account denominated in Euro, but I'm a resident in Asia. Will Interactive Brokers deduct the tax directly from my account or do I have to declare that by myself? Will I pay tax in the country I have residence in? It entirely depends of the two countries and the DTA between them, if any. I can give you an example of how it would work between the US and the UK for a non-US citizen If I lived in the UK and had a brokerage in the US I would be liable to tax in the UK on my worldwide income, but only liable to US tax on my US source income. So I would be taxed in the UK on my dividends and capital gains. Now the US wants its share of the tax too and you work that out using the tax treaty an...
by nun
Mon Mar 09, 2015 11:32 am
Forum: Non-US Investing
Topic: Investing As An Expat [Europe, Asia, Australia]
Replies: 11
Views: 2133

Re: Investing As An Expat

This is a massively complex area and depends on where you invest your money, where you live and the tax treaty between those countries. If you are American it also depends on your citizenship. Very broad principals are that where you live and work has primary taxation authority and what you are tax on will depend on local rules. Local income will almost always be taxed, but foreign dividends might not be because of your residency status....the rules vary with country. There may will be some requirement to pay tax to the country where you hold you accounts as well, but you usually get foreign tax credits for tax you pay where you actually live. There are obviously places to invest your money that won't tax you, but there are other costs to t...
by nun
Mon Mar 09, 2015 11:24 am
Forum: Non-US Investing
Topic: Non-resident alien, 22 looking for substitutes to 401k/IRAs
Replies: 6
Views: 1243

Re: Non-resident alien, 22 looking for substitutes to 401k/I

ACP,
What is you nationality and where you go if you left the US? The US as tax treaties with most countries and retirement accounts are often well covered so you can maintain them in the US and keep the tax deferral until you retire. Also if you are working in the US and contributing to a 401k are you sure you are an NRA rather than a resident alien?
by nun
Mon Mar 09, 2015 11:15 am
Forum: Personal Investments
Topic: How to create a 3% return portfolio?
Replies: 52
Views: 8342

Re: How to create a 3% return portfolio?

Well as you are very conservative you might consider an SPIA for some of the portfolio....the IRRs on those if you live to your expected age are around 3%