Search found 3195 matches

by wolf359
Tue Mar 19, 2024 12:02 pm
Forum: Personal Investments
Topic: Need to replenish Emergency Fund
Replies: 24
Views: 2144

Re: Need to replenish Emergency Fund

Let me introduce you to a concept called "Sinking funds." A sinking fund is an account that is set aside to meet an specific expense or pay off a debt (like a mortgage). It does not have to be a savings account or cash. If the goal is sufficiently long-term, I will use an equity mutual fund. The key is that the funds are separated and labeled for that purpose. The concept: - Every dollar should have a job. - Every goal should have a date that reflects either when it is needed or its priority. - Each month/paycheck, free cash flow is allocated to your expenses, your planned savings/retirement accounts, and an amount to each sinking fund in an amount that will achieve its target date. Note that car and house maintenance are schedule...
by wolf359
Thu Mar 14, 2024 11:27 am
Forum: Investing - Theory, News & General
Topic: Calculating Time to $1MM and each $100k
Replies: 24
Views: 3880

Re: Calculating Time to $1MM and each $100k

This type of thread needs a warning label.

Man Plans, and God Laughs.

Flexibility is key.

Playing with compound interest calculators is fun, but the stock market doesn't provide returns like this. Sequence of returns is a big deal because it all depends upon how the market behaved during your accumulation period, and how it behaves during your retirement.

The counterpoint to this is to play with real market returns using https://portfoliovisualizer.com. Plug in your current portfolio and see how long it would have taken to retire in different time periods.
by wolf359
Thu Mar 14, 2024 9:48 am
Forum: Personal Investments
Topic: "Rich Man's Roth" / 7702
Replies: 37
Views: 5557

Re: "Rich Man's Roth" / 7702

When you pull out the money you can borrow against it so it's 'tax free' I don't understand why people always say this about these scams policies? All loans are "tax free." What exactly do people think they are getting here? This isn't technically a loan, either. According to the IRS, the cash value in a whole life policy is an overpayment of premiums, rather than income. Taking money out of your checking account is neither a loan nor income. Whole life policies obviously aren't a checking account, but they are structured so that they build up cash value and then draw on them in later years as the cost of the underlying insurance goes up. The effective cost to the policy holder is level throughout a lifetime. If you die before th...
by wolf359
Thu Mar 14, 2024 9:26 am
Forum: Personal Consumer Issues
Topic: Refund for whn Delta cancelled my flights
Replies: 29
Views: 2303

Re: Refund for whn Delta cancelled my flights

Delta cancelled two RT flights on me and they will only give me e-credits. According to their email to me, it was because I did not purchase refundable fares. There is no way for me to use those credits before they expire as Delta is not traveling to the destination, which is Cozumel. (They offered to fly me through TWO stops instead of the direct flught I had, which would take nearly a full 24 hours) so the airline has basically stolen these fares from me (750 for one and 694 for the other). They have posted the e-credits to my account, with the first one expiring in Spetember and the second one shortly after. All my travel plans are booked through the end of the year. Obviously, I scrambled to book through another airline and it's not di...
by wolf359
Wed Mar 13, 2024 3:03 pm
Forum: Personal Investments
Topic: SS is insufficient, very little savings, what's the best option
Replies: 49
Views: 7954

Re: SS is insufficient, very little savings, what's the best option

There is insufficient information to provide advice. You may be making some assumptions about their situation that may or may not be accurate. When did they file for Social Security? The fact that they're over 70 does not mean they maxed it out. They could have filed at 62 and have been paying penalties for years, and only recently started saving their payments for retirement. (And that might be why they're looking at their Social Security payments and considering them inadequate.) Waiting to claim implies some financial sophistication and forethought, but if they're only considering their retirement income at age 70, it is possible that they were not planning ahead. (Only 2-4% of the US population files at age 70.) What is their combined S...
by wolf359
Tue Mar 12, 2024 10:01 am
Forum: Personal Investments
Topic: Financial Advisor says my portfolio is akin to a retiree at age 34
Replies: 80
Views: 8322

Re: Financial Advisor says my portfolio is akin to a retiree at age 34

Let's evaluate their advice: - Having a larger VTSAX, VTIAX vs VOO was too conservative. Move everything to VOO. They claim the risk factor was very minimal. I agree that VOO and VTSAX have very similar risk profiles. These two are often used as tax loss harvesting partners. VTIAX is held to provide international diversification. It isn't a conservative holding, because it introduces foreign market risk and emerging market exposure. Their statement is contradictory, however. If the risk factor of holding VOO only is minimal, then their advice is effectively keeping you at the same risk profile. So which is it? Too conservative, or just fine? - Having 30k in I-bonds was enough, I don't need the VTBLX in my 401k This is a matter of opinion. I...
by wolf359
Tue Mar 05, 2024 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Payoff mortgage or maintain liquidity?
Replies: 52
Views: 3699

Re: Payoff mortgage or maintain liquidity?

All things being equal, would you rather maintain liquidity or payoff a mortgage? Assumption: there is no advantage to either option, ie, you can't earn more after taxes maintaining the cash. The cash is in a taxable account. You can't right off the mortgage interest. The interest earned on the pile of taxable cash and the mortgage exactly offset each other. There is no other debt, just the mortgage. You do not need to tap an emergency fund to payoff the mortgage, you have adequate cash reservrs to payoff the mortgage and maintain your emergency fund. The choice is to be debt free or maintain liquidity Which would you prefer? To actually answer the question - I like both. I got to the point of paying off the mortgage, but then didn't do so...
by wolf359
Tue Mar 05, 2024 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Payoff mortgage or maintain liquidity?
Replies: 52
Views: 3699

Re: Payoff mortgage or maintain liquidity?

When you own your house you are vulnerable to non insured disasters or events. I had this happen to my prior house, mortgage balance was very very low, market value was $600,000 , an event took place that dropped the value to zero. I was able to sell the property to the county and at least got something, otherwise it would have been almost a total loss. I don't have a mortgage on my current house and I know I'm taking that risk again. Can you explain what the non insured disaster was and where the house was located. I live in Minnesota and my insurance will cover any natural disaster. We have tornados, but our insurance covers that. We don't have earthquakes or hurricanes. So unlike florida where it's almost impossible to get insurance, we...
by wolf359
Thu Feb 29, 2024 9:08 am
Forum: Personal Investments
Topic: 401k going to cash and moving to IRA.What allocations to make??
Replies: 6
Views: 513

Re: 401k going to cash and moving to IRA.What allocations to make??

It sounds to me that you are operating without a written investment policy statement. https://www.bogleheads.org/wiki/Investment_policy_statement If you had one, you'd simply re-allocate your funds in the way your written plan tells you to. The 401k account is simply the vessel that holds your retirement funds. Changing from 401k plan to an IRA is simply switching the funds to a different vessel, so you simply buy assets similar to your previous asset allocation (and perhaps take the chance to rebalance.) If you truly don't have an IPS right now, then you may want to treat this like a windfall, which is a large amount of money that you're not sure what to do with. https://www.bogleheads.org/wiki/Managing_a_windfall Follow the steps in the l...
by wolf359
Thu Feb 29, 2024 8:45 am
Forum: Personal Consumer Issues
Topic: Want to leave timeshare.
Replies: 111
Views: 12268

Re: Want to leave timeshare.

There are companies that advertise on the radio that they can get you out of your timeshare deal. While I can't vouch for any of these, the company that Dave Ramsey advertised did successfully get me out of my contract. They have since gone out of business due to poor business practices. You can search eBay to get an idea of what your timeshare is worth - note that there are a lot for sale for $1.00 where people like us just want to dump them. Also review the Timeshare User Group website, they have quite a bit of info on selling your timeshare. Good Luck There have been a number of investigative journalism about the timeshare exit companies. Some of them are scams. Some have been investigated and shut down by the FTC. Some of the scammers ...
by wolf359
Tue Feb 06, 2024 8:58 am
Forum: Personal Consumer Issues
Topic: Laundry Detergent Pods Suds
Replies: 37
Views: 3597

Re: Laundry Detergent Pods Suds

criticalmass wrote: Mon Feb 05, 2024 11:35 pm I've found that reducing the detergent dose for normal washes leads to cleaner clothes. With much experimentation, I am down to less than half of the vendor's "recommended" dose for optimum results with shirts, pants, and athletic wear. Excess detergent doesn't get anything cleaner, but does remain in the fabric after rinsing.
+1

This is my experience as well. I am using about half the dose stated on the package.

I also get skin irritation when detergent is still in the clothes, so I can tell when it is still there.

Alternatives to detergent are 1/2 cup of baking soda, or 1/2 cup of vinegar. For certain clothes, we just use water (no detergent at all.) It's surprising how well these 3 alternatives work.
by wolf359
Mon Feb 05, 2024 9:10 am
Forum: Personal Finance (Not Investing)
Topic: When to Start Soc Sec
Replies: 61
Views: 6866

Re: When to Start Soc Sec

I've read many articles on this topic plus I ran the opensocialsecurity.com calculator and was settled on a strategy of delaying my Soc Sec benefit until age 70. I understand that I will need to live to about age 80 or longer for this strategy to have been better than starting at 62. Basic facts - I don't need the money, I was the primary wage earner between my wife and me and I am 3 years older than my wife. I just watched a Dave Ramsey video in which he ranted on that if you do not need the money that the best strategy by far is to commence at 62 and take the after-tax benefit amounts and invest those. He said the returns will far outweigh the increased benefit amount you get by waiting. Does this guy know what he's talking about? Is thi...
by wolf359
Mon Feb 05, 2024 8:39 am
Forum: Personal Finance (Not Investing)
Topic: When to Start Soc Sec
Replies: 61
Views: 6866

Re: When to Start Soc Sec

It’s well known that Dave Ramsey makes some stock return estimations that most bogleheads disagree with. 1. He assumes the stock market returns 12% on average. 2. He assumes you are invested 100% in stocks. 3. He doesn’t take risk into account. He also assumes that: 4. You only invest in actively traded mutual funds that beat the market. (Source: https://www.ramseysolutions.com/retirement/index-funds-vs-mutual-funds) 5. You buy mutual funds with commissions and reasonable expense ratios (up to 1%). He believes you get what you pay for, and you shouldn't settle for average. (Source: https://www.ramseysolutions.com/retirement/why-dave-prefers-up-front-fees) 6. You have an investment advisor from his recommended network. (Source: https://www....
by wolf359
Mon Feb 05, 2024 8:12 am
Forum: Personal Consumer Issues
Topic: Sleeping struggles with two people one bed
Replies: 71
Views: 7013

Re: Sleeping struggles with two people one bed

It's a cliche, but my spouse and I "fight" over the sheets and blankets most nights. Part of the problem is that spouse likes the sheets and blankets tucked in the side and bottom, and I despise it with all my being. I'm also a sleep-shifter throughout the night. So we have half-tucked blankets that get tossed around in the night. We've decided to try using separate sheets and blankets. I'm thinking one king fitted sheet, two twin top sheets, and two blankets/duvets. Spouse can tuck their side in and I can leave mine out. Anyone try something similar? How did it work for you? Other ideas? Does this impact your actual sleep? How do they know if your side gets untucked? When the sheets are tucked on both sides, it's like the bed is...
by wolf359
Tue Jan 30, 2024 8:25 am
Forum: Personal Consumer Issues
Topic: Do we need a new car?
Replies: 70
Views: 8937

Re: Do we need a new car?

Why anyone would buy a Kia or Hyundai with the rash of stolen ones happening with the YouTube challenge going on. Perhaps because none of the current or recent models were impacted, nor were any years of most models/trims likely to be selected in this thread? Why would anyone buy a Toyota when they had several engines with high failure rates due to oil sludge? Because those engines are no longer for sale. Same deal. The majority of the Kia and Hyundai thieves are under 18, and are not car experts. They see the nameplate, not the model year. If your car has an immobilizer then they will fail to steal the car, but you will still have to deal with the smashed window and other damages from the attempted break-in. Not sure if it's behind a payw...
by wolf359
Wed Jan 24, 2024 11:12 am
Forum: Personal Investments
Topic: 5 Years as a Boglehead- am I ready to retire?
Replies: 18
Views: 4986

Re: 5 Years as a Boglehead- am I ready to retire?

You can retire. $3.5 million investments x 3% withdrawal rate = $105k/yr real forever Taxes have to be included in expenses. +1 I agree you're in great shape, and can retire. Taxes are more complicated to budget, because it depends on a lot of factors. Since it varies so much between person to person, it is normally left out with a vague reference to accounting for your taxes (like above.) - Obvious fixed taxes such as property tax for a paid off house are easier to budget (and you included this.) - In New York State, Social Security income is not taxed at the state level. At the federal level, you may have to pay income taxes, up to 85% of your income may be subject to tax. (In your 40's you may not need to deal with this for a long time....
by wolf359
Thu Jan 11, 2024 12:35 pm
Forum: Personal Investments
Topic: Is anybody actually running out of money in retirement?
Replies: 201
Views: 48719

Re: Is anybody actually running out of money in retirement?

Reading the forum and pushing posts on my ridiculous mechanical keyboard, I do sometimes wonder if I have become money obsessed. We seem to often have comically high incomes, massive portfolios, and rich people problems. We might have become a forum for the counsel of the weird. Jon Levy wrote a book titled You’re Invited wherein part of his premise is that who we surround ourselves with is the person we become. I’m okay being part of the counsel of the weird. :beer Me too. I am surrounded by my wife's family (my wife is very practical and not attached to the things of world; we are a lot alike) who talks a good game, but while having the outer appearance of wealth is shackled by debt. My father-in law is working at age 83 and my sister-in...
by wolf359
Wed Jan 03, 2024 8:45 am
Forum: Personal Investments
Topic: Bridge options - can’t do SPIA
Replies: 29
Views: 3541

Re: Bridge options - can’t do SPIA

If thats the case maybe the TIPS ladder is superior in this way even though I love the idea of buying a predictable check monthly. I feel both the TIPS ladder and the SPIA are reasonable choices. However, the predictable monthly check from the annuity will not have a predictable spending power over 20 year. So, you could look at the TIPS ladder as the more predictable option. +1 With the TIPS you know exactly how much your paycheck will be in today's money and know it will keep up for inflation. Kind of like you can see the what your social benefits will be in today's, money, but they will be adjusted up for inflation every year. With the SPIA you know you'll get exactly $xx Dollars in 10 years, but there is no telling if it will still buy...
by wolf359
Wed Dec 27, 2023 11:47 am
Forum: Personal Investments
Topic: Bridge options - can’t do SPIA
Replies: 29
Views: 3541

Re: Bridge options - can’t do SPIA

I have been planning for some time an early retirement at 50. I am interested in taking part of my bridge money and buying an annuity with it that will cover our bare minimum expenses. The problem is that today I found out that taxable annuities still have the same age restrictions as if bought in an IRA. I can’t have penalty free income until 60. I am interested in those mainly because I like the idea of a guarantee for that money which will last roughly 20 years. Since I now know I cannot buy an 20 year period certain annuity at 50 without penalty I am curious if there are other options I may be forgetting. I see it as having 3 choices. 1. Buy a 20 year certain SPIA and pay the 10% penalty for the first 10 years. Since its only on the re...
by wolf359
Fri Dec 22, 2023 8:13 am
Forum: Personal Finance (Not Investing)
Topic: how much do you think you need to retire?
Replies: 295
Views: 62339

Re: how much do you think you need to retire?

There was an article in the Washington Post about a stealth millionaire in Indianapolis who left $13 million to charity. https://www.washingtonpost.com/nation/2023/12/21/terry-kahn-indianapolis-millionaire/ (This specific article might be behind a paywall, but google "Terry Kahn" and you'll see multiple news articles and reports.) When I looked at his numbers, it doesn't say how much he had when he retired in 2003 (at age 60), but he had between $3-4 million in 2010 (after an inheritance was added to the mix). 13 years later, it was $13 million. I ran the numbers through portfolio visualizer, and those returns are consistent with a simple index fund portfolio invested in that time period. In other words, his results were obtainab...
by wolf359
Thu Dec 21, 2023 11:46 am
Forum: Personal Finance (Not Investing)
Topic: how much do you think you need to retire?
Replies: 295
Views: 62339

Re: how much do you think you need to retire?

When I read threads like this, I get anxious about how much people think you need to retire, given the large numbers being tossed around. Then I focus on my own numbers and expenses, and feel that I'm on track (but I wonder if I'm missing something.) There was an article in the Washington Post about a stealth millionaire in Indianapolis who left $13 million to charity. https://www.washingtonpost.com/nation/2023/12/21/terry-kahn-indianapolis-millionaire/ (This specific article might be behind a paywall, but google "Terry Kahn" and you'll see multiple news articles and reports.) When I looked at his numbers, it doesn't say how much he had when he retired in 2003 (at age 60), but he had between $3-4 million in 2010 (after an inherita...
by wolf359
Thu Dec 14, 2023 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Both take SS at 70 if self-insuring Long-Term Care?
Replies: 22
Views: 2229

Re: Both take SS at 70 if self-insuring Long-Term Care?

The reason Long-term care is a concern is that you do not want to use up all the resources for the first person, because the surviving spouse will also need some of the retirement resources to fund the rest of their life. However, waiting until 70 for both spouses doesn't necessarily make sense because once the first spouse passes, you only get to keep one SS check. And that's the higher one (where they already waited until 70.) Taking resources out of the 401k to get that second check at 70 when you won't keep it might not lead to the best outcome. If you drain the 401k for the second person, that may be fine unless someone else (like a permanently dependent adult child) also needs the funds for support. Also, although you might have to pa...
by wolf359
Thu Dec 07, 2023 1:17 pm
Forum: Personal Investments
Topic: 100% Contrafund
Replies: 26
Views: 3998

Re: 100% Contrafund

Contrafund is very good. I have no problem with it. At some point you may want some bonds, but if that's 20 years from now, I think that's perfectly fine. Or maybe never. Honestly just the anecdotal reviews and track record I’ve heard. I do have an S&P fund I can choose. However, options are fairly limited. I also have a blended fund which is a 60/40 split and Vanguard target funds. Check the fund against YOUR track record of when you bought it, and what your returns are. When investing with a superstar manager, the fabulous returns he achieved over the last 30 years doesn't help if you only bought into it a few years ago. Keep in mind that the last couple of years have been pretty flat -- you sho With actively managed funds, you're ta...
by wolf359
Tue Nov 28, 2023 8:28 am
Forum: Investing - Theory, News & General
Topic: Firecalc.com - What is acceptable percentage?
Replies: 77
Views: 9965

Re: Firecalc.com - What is acceptable percentage?

Good Morning, So I am really starting to look at my portfolio and was just introduced to firecalc.com through bogleheads. My wife and I are both teachers who will get pretty nice pensions and our state does allow us to collect SS as well so we will be in really good shape just with pensions and SS. That leads us to our retirement accounts and I am using $1,000,000 ( I imagine we will be well north of this when we retire but it seems like a safe number) to figure out how much money we can take out of it each year. This money we would be pulling out will be fun money and is not needed to live day to day so we are very blessed. Anyhow I said if we take out 4% or $40,000 each year it says it has a 95% success rate for doing this for 30 years a...
by wolf359
Mon Nov 27, 2023 10:19 am
Forum: Personal Consumer Issues
Topic: My Hondas wont die...they just keep running
Replies: 130
Views: 16011

Re: My Hondas wont die...they just keep running

Your wonderfully low car insurance rate is going to increase as soon as your kids start driving. One trick is to keep them on a learner's permit as long as possible. A possible time to upgrade your car is if you need another car once you have another driver. Then you get the new car, and let the kids drive the safer of the two older ones. They're going to dent, ding, and scratch anything you get them due simply to inexperience. It's better to give them the one that's pre-dented. Make sure you have a lot of liability coverage and especially umbrella liability. I love my Hondas. My goal is to try to drive it to the moon (the lunar distance is between 230,000-250,000 miles) before I get rid of it. Still approaching 200,000 now for a 2006 Civic...
by wolf359
Fri Nov 17, 2023 4:21 pm
Forum: Personal Consumer Issues
Topic: How important is a processor for a Chromebook?
Replies: 15
Views: 1718

Re: How important is a processor for a Chromebook?

KlangFool wrote: Fri Nov 17, 2023 12:58 pm OP,

I thought Chromebook has been discontinued. Why would you choose to buy a new one?

KlangFool
Chromebook isn't discontinued. When new models are announced, they support them for a limited period of time with updates. Perhaps what happened is that a previous model you owned went out of support.

In this case, the new Felx 3i 12.2" model has an Auto Update Expiration date of June 2031.
by wolf359
Thu Nov 16, 2023 8:24 am
Forum: US Chapters
Topic: What's changed in the last 10 years Bogleheads?
Replies: 279
Views: 57637

Re: What's changed in the last 10 years Bogleheads?

3 pages in and nobody has mentioned VPW?

VPW started in a post at Bogleheads 10 years ago. viewtopic.php?t=120430

This is an alternative withdrawal strategy to the 4% Rule. Which itself has changed, with some risk-adverse members advocating for the 3% or 3.5% safe withdrawal rate (or lower!)

Also about 10 years ago, Mel Lindauer wrote an article in Forbes proposing a DIY annuity. viewtopic.php?t=111987

Polls and surveys are no longer a feature. I miss that. Particularly the net worth survey.
by wolf359
Mon Nov 13, 2023 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Cost of health care in retirement
Replies: 71
Views: 17897

Re: Cost of health care in retirement

When you see an estimate like this, you need to dig into the source study and see what they're talking about. I believe you're looking at the annual Fidelity Retiree Healthcare Cost Estimate. That estimate for this year is $315,000. It defines medical expenses to include health and dental insurance premiums, doctor and hospital visits, co-pays, prescription and over-the-counter drugs, glasses and contacts, crutches, and wheelchairs, to name a few. Important detail #1: That estimate is for a couple, starting at age 65. Important detail #2: It does NOT include an estimate for end-of-life or long-term care. Long-term care planning is important for a couple because you don't want to drain all the resources for the first-to-die, leaving the surv...
by wolf359
Mon Nov 13, 2023 7:50 am
Forum: Personal Consumer Issues
Topic: Smoke Detectors
Replies: 56
Views: 6341

Re: Smoke Detectors

When we're replacing the smoke detectors, we replace all of them at the same time.

That means we're getting them in bulk packs from Costco. Good prices, excellent return policy.

They sell both the 10-year battery and the regular smoke detectors. They come with wire harness adapters, and have not had a problem with previous models. They also tend to put them on sale periodically throughout the year.

We switched to the 10 year units and have not heard a chirp in years.
by wolf359
Mon Nov 06, 2023 11:42 am
Forum: Personal Consumer Issues
Topic: Suggestion for Kids packed lunch?
Replies: 57
Views: 4370

Re: Suggestion for Kids packed lunch?

I don't get it. Are you saying the number of foods your children will eat can't be counted on one hand? No, it's just the type of food that can be brought to school is rather limited. My son wants me to pack Sushi, but I don't think that is a great idea. I might try getting him some smoke salmon if I can figure out if that would be safe. My daughter wants chicken parm, burger with fries, mapo tofu, and hot pot, most of these are not great for school lunches. I think I need to read up on what food is possible. Personally I hate cold food, so I am a bad person to make judgement. You need to look up kids bento box lunch ideas. I did this for my kids. Google "kawaii bento box ideas" There are types of sushi that do not involve raw fi...
by wolf359
Mon Nov 06, 2023 11:00 am
Forum: Investing - Theory, News & General
Topic: Did the original 4% rule with 60/40 allocation use individual bonds or bond funds?
Replies: 11
Views: 1404

Re: Did the original 4% rule with 60/40 allocation use individual bonds or bond funds?

You can read his original article here and reach your own conclusions on how to interpret it: https://kyestates.com/wp-content/uploads/2015/02/Bengen1.pdf He used neither. His research was based on historical returns that he looked up from Ibbotson data. The bond component was intermediate term treasuries. And he doesn't focus on 60/40. He mostly talks about 50/50. He states that stock allocations below 50% and above 75% are counter-productive. The original article is aimed at financial advisors managing their client accounts. And it wasn't posed as a "rule" so much as a starting point, in which flexibility was required. The historical context was that the article was published in the 1990's, when 20% annual returns were common. T...
by wolf359
Thu Nov 02, 2023 8:35 am
Forum: Personal Investments
Topic: How to handle 401K after layoff?
Replies: 22
Views: 2980

Re: How to handle 401K after layoff?

Only question I have now is I see the limit for an IRA is $6500. Is this separate from the Roth IRA limit? She has already contributed her max for the year into her Roth, so can she use her severance money to contribute to a regular IRA as well? No, the IRA limit is the limit for all versions of the IRA combined. Roth conversions are not limited however. (For some reason, the IRS will not object to anyone voluntarily deciding to pay additional taxes.) If she has any traditional IRA balances, she could take advantage of her reduced income and pay taxes on them to convert them into Roths. If she doesn't have any traditional IRA balances, but she has traditional 401k balances, you could try to roll that over to an IRA, then convert some of th...
by wolf359
Thu Nov 02, 2023 8:34 am
Forum: Personal Investments
Topic: How to handle 401K after layoff?
Replies: 22
Views: 2980

Re: How to handle 401K after layoff?

Does she need to turn her 401K into something else in order to be able to contribute? Yes she needs to rollover the 401k into an IRA. She can create an IRA and contribute to it if eligible under IRA rules like everyone else. Whether the 401k money is pulled into that IRA or not really has no effect on anything. IRA won't work, because OP's wife has already contributed the maximum to a Roth IRA for this year. OP's wife can't use severance pay for 401k contributions. We need to get creative here: 1. Is wife yet to receive her final paycheck? Will HR let her adjust her contributions for her final paycheck? If so, adjust her 401k contribution to meet her limit for the year, up to the amount of the normal paycheck. 2. Obviously, wife can get a ...
by wolf359
Wed Oct 18, 2023 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Where can you get the most detailed credit report of yourself?
Replies: 19
Views: 2263

Re: Where can you get the most detailed credit report of yourself?

Your specific question was about the most detailed credit report, and I believe that has been answered. However, one piece of information that is NOT on that report (at least the last time I looked) is your credit score number.

That credit score is the one thing many people are looking for, to summarize their likelihood of getting a loan.

Check your credit card statements. Many credit cards will provide that credit score as a courtesy. Specifically I see it on my VISA bill and my DISCOVERY bill.
by wolf359
Tue Oct 17, 2023 11:41 am
Forum: Personal Investments
Topic: Tired of working. Are we ready to retire?
Replies: 65
Views: 13177

Re: Tired of working. Are we ready to retire?

I played 2 scenarios with firecalc, 1) keep paying the mortgage that has 27 years remaining and 2) payoff the mortgage for smaller annual spending. Both scenarios are set for 45 years in retirement. I left out additional income from social security and assumed to pay the mortgage for 45 years although it will end after 27 years. This was done to simulate the worse scenario. In both cases, the success probably is between 95% and 100%. In terms of finances, you're good to go. Keep in mind that the "success rate" in your calculation has some assumptions built in. 1) The future is like the past. The calculation does not actually predict the future, but rather projects how you would have fared had you retired in the past. There is no ...
by wolf359
Mon Oct 16, 2023 12:09 pm
Forum: Personal Consumer Issues
Topic: Private school offering no AP courses in high school
Replies: 139
Views: 13886

Re: Private school offering no AP courses in high school

windaar wrote: Tue Sep 26, 2023 3:58 pm This is a common trend in private schools lately. Google the topic and you'll see. I think that all of the DC area independent schools dropped their AP courses simultaniously. APs can shackle creative teachers to a rigid enternal curriculum. Private schools want to give more than what students can get at any large public school. Students can still sit for, and do well in the AP tests if they want. Colleges will not penalize a student who went to a good private school that does not offer AP courses.
Interesting article about this: https://www.insidehighered.com/news/201 ... %20program.
by wolf359
Mon Oct 16, 2023 12:04 pm
Forum: Personal Consumer Issues
Topic: How do you read, Kindle recommendations, and indecision with the Kindle store?
Replies: 95
Views: 6945

Re: How do you read, Kindle recommendations, and indecision with the Kindle store?

I have an iPad that I use for reading the paper, but I've never really enjoyed reading a book on it. I like to disconnect when I read a book, and having the iPad or iPhone there with all of the distractions makes it less enjoyable. It's also impossible to use outside at the beach or pool 8-) The Kindle Paperwhite or other dedicated e-book doesn't have the distractions, is readable in direct sunlight, and is waterproof. They're also very cheap on Prime Days and Black Fridays. I like reading paper, but if I have a phone with me, I have a book with me. I have such a backlog of Kindle books now that I'll just grab the reader if I want focused reading time. I mostly select reading material by borrowing from the library and just waiting for the ...
by wolf359
Wed Oct 04, 2023 12:13 pm
Forum: Personal Consumer Issues
Topic: BJ's optical? BJ's as alternative to Costco generally?
Replies: 11
Views: 2120

Re: BJ's optical? BJ's as alternative to Costco generally?

They´re building one right infront of where I live. So I went to another BJs and form an opinion. And for the most part I think it´s pointless and doesnt even come close to Sam´s Club, which itself doesnt even come close to Costco. Costco has a wealth of things you can only get at Costco. And a wealth of things you can only get at Costco in a certain quality or a certain price. It has things I want and which I cant buy anywhere else. BJs doesnt have any of this as far as I could tell. There´s no product of their inhouse brand that makes me wonder and want to buy it. There´s nothing exotic or rare or exciting they sell. I would even argue if this is even a wholesale club. I am not sure what their edge is but certainly interested to learn ab...
by wolf359
Tue Oct 03, 2023 1:04 pm
Forum: Personal Consumer Issues
Topic: Home Security Cameras - Worth it?
Replies: 67
Views: 5856

Re: Home Security Cameras - Worth it?

Preventing theft is like the story about outrunning the bear. You don't have to outrun the bear, you just have to have someone slower than you nearby. If there are 20 homes they are looking at, they will probably pick the one that has the least lighting, cameras, visibility from the street, etc. Obviously there are other factors (what house looks like it might have the best stuff). This is probably less true in a very rural situation. Great analogy. Which house in my upper-middle class neighborhood where everybody is wealthy, is the thief going to choose to rob? The house with no exterior lights, overgrown bushes and trees, a backyard hidden from the view of the neighbors? Or the house with motion-sensitive lights, visible cameras, tidy la...
by wolf359
Tue Oct 03, 2023 11:01 am
Forum: Personal Investments
Topic: 20 - 25 times annual income retirement planning
Replies: 32
Views: 5039

Re: 20 - 25 times annual income retirement planning

I know of the 25X annual spending for early retirement calculation. I am 52, wife is 59. We have no kids and no debt. We currently have 22 times our Annual Gross Income, not spending, in our retirement and brokerage accounts. What do you think...are we safe to call it quits? Assuming we spend our entire income, as we always do, I think we are in good shape. I appreciate your thoughts or if others use a similar formula. I get too bogged down in all the budget sharing on here. Yes, speaking as a ballpark number, you're probably in good shape. The problem is that the 4% rule is a ballpark estimate of how much you need to retire, and you're ballparking that. Before you do something like retiring, you should run your actual numbers. Quitting yo...
by wolf359
Tue Oct 03, 2023 10:20 am
Forum: Personal Consumer Issues
Topic: Hybrid or non-hybrid vehicle?
Replies: 42
Views: 4880

Re: Hybrid or non-hybrid vehicle?

jebmke wrote: Mon Oct 02, 2023 2:18 pm Plug-in hybrids -- I wonder if they are even worse in similar situation. Don't they have bigger batteries?
The ideal situation for a plug-in hybrid is stop-and-go traffic where the round-trip mileage is covered by the rated distance.

Stop-and-go implies that you don't exceed 45 mph or so, where the gas engine will kick in. You might make your entire commute on just the battery, and never touch the gas.

Go faster and/or longer, and you're using the gas.
by wolf359
Mon Oct 02, 2023 10:40 am
Forum: Personal Consumer Issues
Topic: Home Security Cameras - Worth it?
Replies: 67
Views: 5856

Re: Home Security Cameras - Worth it?

I might put in some home wifi security cameras, camera doorbell and possibly flood lights with cameras. But I wonder how effective they are at actually deterring people. Open to brands, but am leaning towards either Google Nest or Wyze. Wouldn't need to save a lot of recordings to the cloud, ideally cloud storage would be free. Any recommendations? Cameras do not deter. They do not protect. They are a sensor that collects data. They watch and monitor. I compare security cameras to my Yorkshire Terrier. My Yorkie is extremely territorial, but it is a watch dog, not a guard dog. It's excellent at observing what is going on around the house, but if there is an actual security issue, a seven-pound dog will not secure or stop anything from happ...
by wolf359
Thu Sep 28, 2023 9:09 am
Forum: Personal Investments
Topic: [Safe Withdrawal Rate] Are you 3% and why/why not?
Replies: 223
Views: 25256

Re: Are you 3% and why/why not?

Glockenspiel wrote: Thu Sep 28, 2023 8:57 am
angelescrest wrote: Thu Sep 28, 2023 8:40 am What’s a good SWR for someone who is about 79, with a life expectancy of maybe 15 more years?
7% would be very safe for a 15-year timeline.
7% is probably too high. With a shorter time horizon, there are fewer years for equities to compound favorably but plenty of years for a bear market to show up. You'd probably need lower exposure to equities, and a lower withdrawal rate.

Without running any studies, I'd guess an appropriate SWR is more like 5% or maybe as high as 5.5%. Equities should probably be in the 25% to 50% range.
by wolf359
Thu Sep 28, 2023 8:55 am
Forum: Personal Investments
Topic: [Safe Withdrawal Rate] Are you 3% and why/why not?
Replies: 223
Views: 25256

Re: Are you 3% and why/why not?

What’s a good SWR for someone who is about 79, with a life expectancy of maybe 15 more years? SWR loses its relevance during a shorter timeframe (although you can still apply it, and your heirs will thank you.) An SWR is trying to balance the benefits of compound interest (which boosts your equities) with the sequence of returns risk (where you might run out of money.) 10-15 years doesn't give much time for compound interest to help, whereas the risk of loss is increased as your time grows shorter. At that age I'd consider an immediate annuity to address income requirements. The mortality credits should exceed market returns, and you can set up an income stream that you can't outlive. (But don't annuitize everything -- my personal rule of ...
by wolf359
Thu Sep 28, 2023 8:43 am
Forum: Personal Investments
Topic: [Safe Withdrawal Rate] Are you 3% and why/why not?
Replies: 223
Views: 25256

Re: Are you 3% and why/why not?

A lot of discussion around Whether 3% is equivalent to the old 4%. Are you comfortable with a 3% withdrawal rate and if so why? What do you base it on? And for how long would you feel comfortable with drawing 3%? I am curious because I think I have hit my number if 3% in perpetuity is a realistic withdrawal rate SWR is a guideline to withdrawal. It should only be used as a rule of thumb to know whether or not you are in the ballpark of having enough. Failure as defined by the SWR studies was that you would run out of money. But in the real world, that doesn't happen. Honestly, if you are in the throes of the Great Depression II, 1/3 of the the population is unemployed, the market has collapsed 90%, and you look likely to run out of money i...
by wolf359
Wed Sep 20, 2023 11:58 am
Forum: Investing - Theory, News & General
Topic: Investing in Gold: How sure are we GLD holds real gold bullion?
Replies: 40
Views: 4340

Re: Investing in Gold: How sure are we GLD holds real gold bullion?

The FAQ for GLD is here: https://www.spdrgoldshares.com/usa/faqs/

According to that FAQ, the gold is not insured. It is not loaned out. It is audited by a third party.
by wolf359
Mon Sep 18, 2023 10:49 am
Forum: Personal Investments
Topic: "Investment-Only Retirement Plan" at Etrade
Replies: 2
Views: 401

Re: "Investment-Only Retirement Plan" at Etrade

It looks like a service offering the custodial account for a small business 401-k plan. You have to supply the 3rd party administrator and the financial advisor. This service will hold the actual investments and provide statements.
Designed for business owners and plan sponsors with an established qualified retirement plan, using a third-party plan administrator.
You wouldn't use this directly as an individual investor. You would use this if you own a business and you are looking for someone to hold the assets for the retirement plan that your company operates.
by wolf359
Mon Sep 18, 2023 10:06 am
Forum: Personal Consumer Issues
Topic: Your experience selling a car to a dealer / CarMax / Carvana
Replies: 50
Views: 7338

Re: Your experience selling a car to a dealer / CarMax / Carvana

How does Carvana and Vroom do with older cars in less than great condition ? Those of us Bogleheads who tend to keep a car a very long time eventually do sell ! I usually keep at least 10 years, but never send them to the junkyard, at least not yet. I have no carmax near me unfortunately, but I believe Vroom and Carvana will work in my area. If your car is really old and ready for the junkyard, get a quote from a junkyard. All the dealers will be doing is auctioning it off. I did not realize that, and got a quote from CarMax. The car died on the drive there, and they would no longer accept it. I had no choice but to call a junkyard and have them tow it. It turns out that the yard gave me a higher price than CarMax was offering, and that's ...
by wolf359
Thu Sep 14, 2023 2:23 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 11149
Views: 2085422

Re: What Movie Have You Recently Watched?

Did you spot Weird Al's cameo in the movie? Maybe. Maybe not. Cannot remember! Mostly what I remember was the beginning where he was at a high school party and they were playing polka's and he became this big thing because he could play the accordion. I probably best remember that because I was forced to take accordion lessons from the ages of 9 year old to 15 years old and to practice six days a week. So that was a twist for me to see it being popular. When Weird Al first tries to get a record deal with the Scotti Brothers, the real-life Weird Al plays Tony Scotti. He was unrecognizable to me (he's in a suit playing a square.) The scene is funnier because Ben Scotti starts mocking Al and his appearance, and the real-life Al seems to get i...
by wolf359
Thu Sep 14, 2023 2:11 pm
Forum: Personal Investments
Topic: Annuity if you don’t need it.
Replies: 95
Views: 10213

Re: Annuity if you don’t need it.

sailaway wrote: Wed Sep 13, 2023 10:04 pm Have you looked into gifting annuities? Check with your favorite large charity's gifting department. Then you get the annuity and the charity benefits, as well.

You may decide it is a compromise too far, or you may decide it is a good fit for your goals.
There is a product known as a charitable remainder annuity trust. It pays less than a SPIA because it needs to ensure that money is left over for the charity. However, it sets up an annuity for your lifetime, and anything left over goes to the charity automatically.

That way you don't outlive your money, and the remainder is donated.