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gjlynch17

With that high of a credit rating, wouldn't Toyota be able to borrow money at a much lower rate than 1.5%? What's the catch here? An A+ rated company should be able to borrow at less than 1.5%, and it can also lock in the low rates for many years. Toyota may just be trying to diversify its funding ...

gjlynch17

Duke power and U-Haul have similar programs. Not demand deposit but higher rates than what you normally see. Never invested in them personally though. Thanks for sharing! I did not know these types of investment opportunities existed. Duke Energy has a demand note with a tiered interest rate from 0...

gjlynch17

I’ve just learned about Toyota Income Driver notes which are not FDIC insured but are demand deposits paying 1.5%. That’s where I now plan on holding substantial cash balances. Interesting. A+ rated demand notes at 1.50% interest. I am not sure it is a good fit for me but I find the concept intrigu...

gjlynch17

When I stop working and drawing a paycheck I will need income. I won't have time to wait years for interest rates to come up (which could have a negative impact on my stock portfolio, but oh well). I have enough capital in my "growth" portfolio to acquire additional annuities at a later t...

gjlynch17

Isn't the 3.5% rule too rough of a tool to gauge retirement readiness? Does not consider social security, or the value of the rental property (either intrinsic or by the generated cashflow). I used one of the more sophisticated calculators here and elsewhere taking into account all simulations, etc...

gjlynch17

Resurrecting this thread as the Colorado stable rate rate is 2.09% net of fees. Even with the 10% penalty on non-qualified withdrawals the net interest rate is 1.88%. At current HYSA in the ~0.5% range, does anyone use the stable value options in the Colorado 529 plan (or other 529 plan) in lieu of ...

gjlynch17

Relevant to the discussion and likely more useful for people (like me) who are contemplating early retirement in the near future is a recent post from Karsten at Early Retirement Now quantifying the financial benefit in terms of safe withdrawal strategies of working 1-2 more years. The conclusion is...

gjlynch17

[If you don't, then taking distributions immediately and putting it in a taxable account is much better. If you do not use an HSA for medical expenses, it operates similar to a traditional IRA / 401(k) after age 65. For those who expect to have a lower tax bracket in retirement the benefits of the ...

gjlynch17

$275k HSA balance at 52 is absolutely insane man. You need to run some numbers and compare it to a taxable account. If your HSA balance reaches 1 million, which it might very well, then how are you going to justify paying a marginal rate of 24%+ on the amount you can't spend on medical expenses whe...

gjlynch17

The question is why someone would want a six figure HSA balance? You are losing money if you can't spend all of it on medical costs because your retirement marginal rate will be above your long term captain gains rate. I should also mention there is an inverse correlation between medical expenses a...

gjlynch17

[Duplicate post]

gjlynch17

There are only a few hundred people in the country that have six figure HSAs. Source? This estimate seems low to me relative to maximum HSA contribution levels and market returns. https://www.forbes.com/sites/ashleaebeling/2015/07/20/the-150000-plus-health-savings-account/?sh=b55109b491e4 Yet only ...

gjlynch17

The Variable Rate Withdrawal Calculator here on Bogleheasds seems to use Social Security in that the Calculator (for me) shows a higher current percentage withdrawl rate once I have plugged in future social security benefits. Or am I missing in something? You are correct. If one is not yet taking s...

gjlynch17

It's actually the opposite. The higher the rate I use, the lower the present value the more I need to save. I think you are just highlighting that a retiree needs to save more in a low interest rate environment to generate the same income stream. Your actual social security payment stream is the sa...

gjlynch17

OP, as others have said, there is no universal "right" discount rate. You need to select one you are comfortable with. Personally, I believe discounting social security at a long-term TIPS rate makes sense but reasonable people have different views. Michael Kitces and Siamond have written ...

gjlynch17

MY analysis show that 1929 was not the worst time to retire. 1964 was much worse. I haven't figured out why that is yet. My hypothesis is inflation. Standard SWRs assume a baseline rate (e.g. 4%) but increase that amount by inflation each year. In the 1970s, there were years with double digit infla...

gjlynch17

I am getting around to submit an application to Canvas, with payment by check. However, I cannot reconcile the check payment address with the published insurer address. I was asked to mail the check to, either PO Box 81853 Lincoln, NE 68501 or 777 Research Drive Lincoln, NE 68521 To make sure I'm s...

gjlynch17

If you retired in 1929 planning for a 4% withdrawal rate and had saved barely enough saved to sustain that rate according to normal (i.e Trinity study) projections, then things would turn out relatively badly for you. But if you had been Boglehead for the previous decade or more, then you had in pl...

gjlynch17

I agree with the advice of others and would add two other items for OP to consider. First, at a current 37% federal tax bracket, if you expect to be in a lower tax bracket in retirement, (contrary to "conventional" wisdom) you will likely have higher after-tax returns by holding munis (fix...

gjlynch17

For books, I would recommend the following: Wade Pfau, "How Much Can I Spend in Retirement" Wade Pfau, "Safety-First Retirement Planning" Michael Zwecher, "Retirement Portfolios" I also enjoyed Michael McClung's "Living Off Your Money" because of the data and ...

gjlynch17

I often disagree with GMO's analysis but I always enjoy reading GMO's publications due to their consistent, rational and contrarian outlook as it forces me to question my assumptions. This article is no different. It is an excellent article and worth reading. With that said, I disagree with his conc...

gjlynch17

Seems like myga would be something cool to have access to in brokerage accounts, rather than a mishmash of private brokers. Then you could just buy it right in your IRA Fidelity offers MYGAs but the options are limited. Fidelity only offers from six carriers (all A+ or A++ rated) so credit quality ...

gjlynch17

Thank you all for sharing your experiences with Canvas. Gjlynch17, since Canvas issued the policy only like two weeks later, do you know if your money was earning any interest during the interim two weeks? In my dealings with MYGA funding (Oxford, Oceanview, Americo, Gainbridge), the MYGAs all star...

gjlynch17

Stinky, I wanted to check with you on the Canvas product. When you apply with non-qualified funds (suppose you apply on day T+0), do you know when do they take the money out from your bank account, and what is the policy issue date? Thank you. I am not Stinky but when I applied for a Canvas/Puritan...

gjlynch17

I have held both Tax Managed Capital Appreciation (VTCLX) and Tax Managed Small Cap (VTMSX) for over 20 years. VTMSX is an excellent fund: it has provided returns substantially consistent with the S&P 600 while minimizing taxes (no capital gains and vast majority of dividends are qualified divid...

gjlynch17

livesoft wrote: ↑Tue Dec 29, 2020 7:38 am Fidelity charitable and Fidelity HSA are the gateway drugs to getting away from Vanguard. They are great products.

LOL. I would add Fidelity's Cash Management Account to the list also.

gjlynch17

"Trading costs associated with the purchases of municipal securities also detracted from the fund’s relative performance. Lastly, the fund incurred trading costs stemming from significant shareholder inflows and outflows in March 2020 when the municipal bond market was particularly volatile du...

gjlynch17

Background - purchased 5 yr. MYGA via BluePrint Income, now I have purchased a 3 yr and another 4 year MYGA again from BluePrint Income. The 3 and 4 year purchases went very smooth and efficiently - no long wait times to complete the purchase like the first 5 yr. Americo 3.20% one. My plan was to p...

gjlynch17

We did a similar thing, but without all the restrictions. The kid has graduated now, and the 529 had about as much in it as when she started school. She knew the plan all along. The money was for school, and if she didn’t need it all, she could keep the leftovers. She could use it for a down paymen...

gjlynch17

I did financial analysis of other life insurance companies when I was employed by a life insurance company, so numbers of this type are familiar to me. I take some comfort in the "surplus funds" ratio, referred to on page 1 and shown in more detail on page 3. That shows that the "sur...

gjlynch17

I have a contact at the company who shared the assets info. Yes, it would be nice to see a financial profile on the site. There are many smaller insurers doing just fine out there by developing a unique niche. Puritan has been around for 75+ years, so if I were in the market for a MYGA, I'd jump at...

gjlynch17

I do not work for Puritan. I consult with lots of life and annuity companies on going digital for agent and D2C sales. A new product generally does not raise eyebrows. Capitalization is the key determinant of financial stability. They are currently well capitalized. Too bad Americo has not engaged ...

gjlynch17

Question for those purchasing MYGAs: Does your employer offer a stable value option within the 401(k)? If so, are you using MYGAs as replacement of or supplement to the stable value option? I do not have a stable value option within our 401(k). However, that is not the reason I am purchasing MYGAs....

gjlynch17

Yes, this strategy would likely result in better risk adjusted returns. I do something similar (although not targeting to replicate BND) using a HYSA (currently Fitness Bank at 0.85%), Short-Term Muni Bond Funds (VWSUX and VMLUX), Multi-Year Guaranteed Annuities (2.90% -- 3.05%) and Vanguard High Yi...

gjlynch17

If you are active, Fitness Bank may offer the highest rates. They currently offer 0.85% if you average 12,500 steps per month (10,000 if you are 65 or older). https://www.fitnessbank.fit/ I also echo the recommendations of Marcus and Live Oak Bank. I have had accounts at all three. Fitness Bank has ...

gjlynch17

Thanks for mentioning McClung. I'm aware of his book but haven't read it. I'll add it to my list of strategies to review and compare along with Merton's approach and the VPW/ABW-style methods. Along those lines, do you know of a good summary that compares these methods, ideally with an outline of t...

gjlynch17

I understand your point (and willthrill81 and others up-thread) as saying that people shouldn't adopt the assumptions and structure of a Bengen-style withdrawal strategy at all. This point is very well taken! From this perspective, our work has relatively low impact since it solves a problem that w...

gjlynch17

VPW and ABW are very similar in their approach in that they both use an amortization based withdrawal system that is fairly easy to calculate with Excel. The major assumptions are longevity and rate of return. The primary difference between VPW and ABW is the assumed rate of return. VPW as develope...

gjlynch17

What's VWP? I know Variable Percentage Withdrawal (VPW) but this is something else? My understanding of VPW doesn't align with what you're describing of VWP. I believe it's a typo, as evidenced here: VWP as developed by longinvest uses historical equity and bond returns. The acronym should instead ...

gjlynch17

What are the pros and cons of this vs VWP? Why would one choose ABW instead of VWP, or vice versa? VPW and ABW are very similar in their approach in that they both use an amortization based withdrawal system that is fairly easy to calculate with Excel. The major assumptions are longevity and rate o...

gjlynch17

It's not worth it. Just change your core position to FZFXX and be done with it. thank you. I checked and found FZDXX gives better return compared to FZFXX and keeping money there. Let me know if you think differently about FZDXX 7-day yield for both FZDXX and FZFXX is 0.01%. Don't pay attention to ...

gjlynch17

I commend the group on embarking on this task. I am a few years away from retirement and intend on following a ABW strategy in retirement. I am not a spreadsheet wonk so I admire all of the work you are doing. At the risk of stepping into a philosophical discussion that has been discussed exhaustive...

gjlynch17

There's evidence of it happening if you focus on the issue raised, corp bond indexes anomalies, and don't bring in all kinds of extraneous elements from all the other stuff total bond funds hold, plus the presumably higher expenses of a particular active fund. The particular study has been quoted o...

gjlynch17

Healthy Minds App. It is a free app produced by a non-profit that includes not only meditations but also presentations on the neuroscience behind meditation and a report measuring progress in well-being as one progresses through the programs.

https://hminnovations.org/meditation-app

gjlynch17

Coincidentally, my PMT withdrawal formula assuming projected returns based on an average of public information (e.g. Vanguard, BlackRock, Star, Research Affiliates, JP Morgan, AIQ), retirement in three years at age 55 and my current portfolio (assuming no growth in three years) is 4.15%, the same a...

gjlynch17

MikeG62 wrote: ↑Sun Oct 18, 2020 9:23 am
While I am not preparing for retirement, I am 5 years in. Thought I'd take a stab at providing my perspective on your question,

Thanks for sharing!

gjlynch17

Here are a few initial thoughts: 1. Generally, I like the idea of defined maturity ETFs from iShares or Invesco. I especially like the corporate ETFs because of their lower costs (0.10%) and much lower risk of default compared to the high yield defined maturity ETFs. Your proposal may be more comple...

gjlynch17

Duplicate post.

gjlynch17

I am in my early 50s and planning for an early retirement in the next few years so withdrawal strategies in retirement (as well as the corresponding issue how much assets are required) is of great importance to me. I am of the belief that while there is no scientific formula to address these issues,...

gjlynch17

I would also recommend looking at JPMorgan Ultra-Short Municipal Income ETF (JMST). It is the closest ETF I have found to VWSUX. It is an actively managed ETF with an ER of 0.18%. https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/d/jpmorgan-ultra-short-municipal-income-etf-etf-shares-...

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