Search found 85 matches

by PaulF
Sat Sep 09, 2017 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Clueless on taxes but have luxury of both 403b and 457 space
Replies: 27
Views: 2382

Re: Clueless on taxes but have luxury of both 403b and 457 space

There is also the Roth IRA/backdoor Roth option if you do not have any other IRA accounts. You can contribute directly to your own as well as your non-working spouse's Roth IRA up to the max of $5,500 ($6,500 age 50 and above). This starts to phase out at a household income of $118,000/yr. However,...
by PaulF
Thu Sep 07, 2017 8:16 pm
Forum: Personal Consumer Issues
Topic: Flaunt Your High-Mileage Car
Replies: 350
Views: 38785

Re: Flaunt Your High-Mileage Car

soccerrules wrote:
Thu Sep 07, 2017 2:47 pm
05 GMC Yukon XL 199K miles-- First car I've kept that will reach 200K
Oh, Jeez, now you have jinxed it! :D
by PaulF
Sun Jul 30, 2017 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity versus Lump Sum math
Replies: 12
Views: 1241

Re: Annuity versus Lump Sum math

$1,430 is about 50% higher than the amount we see for immediate annuities online today with the $197K starting value. We think this is because he is in a narrow set of employees at a certain date years ago when the company changed the pension from defined benefit to defined contribution. The annuit...
by PaulF
Wed Jul 19, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Your Retirement Number, or, calculating the funding ratio
Replies: 196
Views: 27458

Re: Your Retirement Number, or, calculating the funding ratio

Reviving an older thread to ask about the status of Income Solutions (and explore any alternatives). When I first tried to calculate my FR following Bob's informative post some months ago, I could find all the annuity quotes I needed from Income Solutions (via VG's site). There was one company (Pru...
by PaulF
Wed Jul 19, 2017 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Your Retirement Number, or, calculating the funding ratio
Replies: 196
Views: 27458

Re: Your Retirement Number, or, calculating the funding ratio

Reviving an older thread to ask about the status of Income Solutions (and explore any alternatives). When I first tried to calculate my FR following Bob's informative post some months ago, I could find all the annuity quotes I needed from Income Solutions (via VG's site). There was one company (Prud...
by PaulF
Tue Jul 18, 2017 12:02 pm
Forum: Investing - Theory, News & General
Topic: In Pursuit of the Perfect Portfolio: Robert C. Merton
Replies: 5
Views: 1340

Re: In Pursuit of the Perfect Portfolio: Robert C. Merton

Just for specificity, the relevant parts of the video start right about the 56:00 minute mark.

If you prefer this same content in a written article by Merton, it is available here: https://hbr.org/2014/07/the-crisis-in-r ... t-planning
by PaulF
Mon Jul 17, 2017 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Finance Milestone: 20 Times Annual Expense
Replies: 95
Views: 9025

Re: Personal Finance Milestone: 20 Times Annual Expense

I regret that I am late to the party, but a hearty congratulations! I thank you for your wise help in the past. I find your posts instructive and helpful. Congrats, my friend!
by PaulF
Thu Jul 13, 2017 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Investment/Retirement Planning for couple @ 50
Replies: 4
Views: 696

Re: Investment/Retirement Planning for couple @ 50

Also check your AZ state tax rate. I think it is like 3 to 4%, not 18%.
https://smartasset.com/taxes/arizona-tax-calculator
by PaulF
Sun Apr 30, 2017 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: Need more investments?
Replies: 25
Views: 2264

Re: Need more investments?

Are you sure about that pension figure? From your plan's booklet http://www.rsa-al.gov/uploads/files/TRS_Member_Handbook_T1_bookmarked.pdf#SickLeaveConversion , I found this table: http://i66.tinypic.com/21juiy9.jpg Basically, the formula is that you get a hair over 2% of your highest salary for eac...
by PaulF
Thu Apr 27, 2017 8:28 am
Forum: Investing - Theory, News & General
Topic: Have anyone thought ER/fees comes from gains but not total balance?
Replies: 9
Views: 996

Re: Have anyone thought ER/fees comes from gains but not total balance?

Wakefield1 wrote:Aren't Mutual Fund ERs and fees closely defined by law (in the USA)?


Well, their disclosure is. I don't believe that the values are regulated.
by PaulF
Wed Apr 26, 2017 10:09 pm
Forum: Investing - Theory, News & General
Topic: actual versus average returns [Spartan funds]
Replies: 1
Views: 298

Re: actual versus average returns [Spartan funds]

I suspect that many smart people here would genuinely like to help you, but I cannot tell what you are asking. Could you try to rephrase your question? You mention Spartan (now just called "Fidelity") mutual funds, and you mention a 1.5% fee, but Spartan funds have a very low expense ratio...
by PaulF
Mon Apr 24, 2017 9:50 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 41088

Re: Larry Swedroe says "Goodby."

It has all been said already, but I, too, want to convey how helpful your body of work has been to me. Thank you. At least I can reach up from where I am sitting and touch your "Winning Bond Strategy" book! Be well.
by PaulF
Thu Apr 06, 2017 5:23 pm
Forum: Investing - Theory, News & General
Topic: Delaying SS = Early SS+annuity or not?
Replies: 32
Views: 1904

Re: Delaying SS = Early SS+annuity or not?

An annuity, however, will pay less to a female over her lifetime for the same purchase price. [emphasis added] Did you mean "lifetime" there? I would have thought the statement should have been "will pay less to a female per month for the same purchase price." I thought the life...
by PaulF
Tue Apr 04, 2017 9:18 am
Forum: Personal Finance (Not Investing)
Topic: New home expenses versus a high (overly-high?) savings & investment rate
Replies: 20
Views: 2853

Re: New home expenses versus a high (overly-high?) savings & investment rate

Congrats on the home. I have done many of the things you are contemplating (and more) over a 20-year period, rather than all up front. I was thinking about this thread a bit, and it probably is really more of a lightly-veiled "Am I so focused on saving that I'm not using enough to enjoy the pre...
by PaulF
Thu Mar 30, 2017 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to a govt 457(b)?
Replies: 12
Views: 1117

Re: Contribute to a govt 457(b)?

If early retirement is a possibility for you, note that you can take distributions from a 457 plan prior to age 59.5 without the 10% penalty assessed on 403b's, 401k's, and IRAs.
by PaulF
Fri Mar 24, 2017 11:38 pm
Forum: Investing - Theory, News & General
Topic: 401k access at 55 vs 59.5
Replies: 12
Views: 1554

Re: 401k access at 55 vs 59.5

Do you have access to a 457 plan? There is no penalty for early withdrawals from a 457!
by PaulF
Tue Mar 21, 2017 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Online Retirement Planner Tools
Replies: 10
Views: 1521

Re: Online Retirement Planner Tools

I, too, am making my way through the available online planners! FIRECalc is my default, and i-orp seems to serve a complementary purpose. I recently used the Fidelity one, and found it better than I had anticipated (flexible, user-friedly). I found this link, which reviews many such calculators, use...
by PaulF
Tue Mar 21, 2017 9:53 am
Forum: Investing - Theory, News & General
Topic: Asset allocation and asset placement question?
Replies: 4
Views: 516

Re: Asset allocation and asset placement question?

I cannot tell if you are really questioning the 50/50 ratio, or the placement of the bond portion. If you accept that you want 50% bonds, then the best place for them is in the tax-deferred space. If, instead, you think the potential for growth is paramount (and overrides downside potential), then y...
by PaulF
Mon Mar 13, 2017 10:37 pm
Forum: Investing - Theory, News & General
Topic: [Concerns about TIAA Real Estate Annuity and Retirement fund]
Replies: 2
Views: 766

Re: [Concerns about TIAA Real Estate Annuity and Retirement fund]

I have a lot of money in this fund, so I do have a vested interest. However, I read your post and am wondering what you think they could nefariously be doing? I mean, are you suggesting they are changing the management so they can siphon dollars off to their Cayman Islands accounts or something?
by PaulF
Wed Mar 08, 2017 10:11 am
Forum: Investing - Theory, News & General
Topic: Oh no! The Ohama Titanic Syndrome signal.
Replies: 24
Views: 5027

Re: Oh no! The Ohama Titanic Syndrome signal.

This thread just goes to show technical signals are utter trash. Take a look at site which posts the realtime status of technical indicators for the current US market: m Among the signal names are: Evening Doji Star Hanging Man Bullish Hammer Harami Bullish Three White Soldiers Three Outside Up Sho...
by PaulF
Tue Mar 07, 2017 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Possibly Financially Independent and Feeling Miserable
Replies: 153
Views: 18107

Re: Possibly Financially Independent and Feeling Miserable

I, too, want to thank and commend you for sharing your story so honestly. Although I am grateful to not be so far along the curve, I recognize some of these traits in myself. (Particularly the grocery store agonizing!) Here is one actionable thing I wanted to share. When my wife and I realized that,...
by PaulF
Mon Mar 06, 2017 12:42 am
Forum: Investing - Help with Personal Investments
Topic: What would you do? [Where to invest?]
Replies: 9
Views: 848

Re: What would you do?

I largely agree with FiveK that both of your suggestions are quite reasonable. If it were me, I would choose the 90/10 AA, and put $6k into the Vanguard Total Bond Market, and $43k into the VG Institutional Index fund to keep it simple. I would either put all of your Roths into the VG Total Stock Ma...
by PaulF
Thu Mar 02, 2017 1:00 am
Forum: Investing - Theory, News & General
Topic: model portfolio construction and evaluation
Replies: 2
Views: 335

Re: model portfolio construction and evaluation

I think you will find what you need at Portfolio Visualizer: https://www.portfoliovisualizer.com

You can enter Vanguard funds (or any other funds) as ticker symbols.
by PaulF
Wed Mar 01, 2017 4:16 pm
Forum: Investing - Theory, News & General
Topic: "How Pensions and Social Security Affect Asset Allocation"
Replies: 19
Views: 3727

Re: "How Pensions and Social Security Affect Asset Allocation"

What would be the group's view of these AAs: 1. $1.4 M. (1M TSM, .4 M TBM), Pension of 1.0KK per year 2. $1.0 M. (1M TSM), Pension of 1.8KK per year (the extra pension was "purchased" and increases the pension amount by 0.8KK per year. The original purchase price was $.4M) What is 0.8KK? ...
by PaulF
Tue Feb 21, 2017 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: What to do when both 403b and 457b are avaliable
Replies: 11
Views: 754

Re: What to do when both 403b and 457b are avaliable

indyfish wrote:She says that she wants to work to age 70 - so she has no interest in early retirement.



I remember thinking that when I was her age! :P

I truly hope it works out that way for her. I wish I still felt motivated like that...
by PaulF
Tue Feb 21, 2017 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to Improve TIAA 403b R1
Replies: 8
Views: 599

Re: Best way to Improve TIAA 403b R1

My wife has a good mix of fund selection, including TREA and TRAD (how can I tell which version of Traditional we have?). Unfortunately the expense ratios of these funds are 0.67 to 0.8% and above. A small note: The ER on TREA is indeed 0.89 or so, but this figure is not directly comparable to the ...
by PaulF
Tue Feb 21, 2017 11:25 am
Forum: Investing - Help with Personal Investments
Topic: What to do when both 403b and 457b are avaliable
Replies: 11
Views: 754

Re: What to do when both 403b and 457b are avaliable

I learned this weekend that my wife has both a 403b and a 457b available to her. She works at a public university, and will likely get a promotion in August of 2018, which would bump her pay beyond the standard raise. The 457b has Tiaa Cref and FIdelity - we would probably use the same TIAA lifesty...
by PaulF
Tue Feb 21, 2017 11:17 am
Forum: Investing - Help with Personal Investments
Topic: What to do when both 403b and 457b are avaliable
Replies: 11
Views: 754

Re: What to do when both 403b and 457b are avaliable

radiowave wrote:Keep an eye on maximum contribution amounts . . . $18k combined. Choice between 403b/457b will likely be choice of available funds and expense ratios as well as any additional costs for record keeping.



This is no longer the case. You can contribute the max to each of them.
by PaulF
Fri Feb 17, 2017 8:56 pm
Forum: Investing - Theory, News & General
Topic: Financial Advisors and their fund picks
Replies: 10
Views: 1253

Re: Financial Advisors and their fund picks

In addition to the "it looks impressive" argument, I think it helps lower the barriers for later churning. He can call you up and say "Well, most of your portfolio is doing well, but we have reason to think that commodities and small-cap stocks are going to have a breakout this year. ...
by PaulF
Fri Feb 17, 2017 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to set up small account for incidentals after Mom passes away?
Replies: 19
Views: 1868

Re: Best way to set up small account for incidentals after Mom passes away?

I want to give a heartfelt thanks to everyone who provided info and shared their experiences. I am also going to "close the thread," at least as far as I am concerned. Mom has been declining fast, even significantly since I have been formulating this thread and updating the posting. You ne...
by PaulF
Thu Feb 16, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to set up small account for incidentals after Mom passes away?
Replies: 19
Views: 1868

Re: Best way to set up small account for incidentals after Mom passes away?

I am not a lawyer, but you need to be careful with gifts transferred from someone potentially requiring nursing home care. I believe there is a 5 year "lookback" period for asset transfers before Medicad is granted. My understanding is that Medicad pays for medical expenses for individual...
by PaulF
Thu Feb 16, 2017 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to set up small account for incidentals after Mom passes away?
Replies: 19
Views: 1868

Re: Best way to set up small account for incidentals after Mom passes away?

Thanks, all! The POA is indeed the executor. And yes, there is a checking account. (I just wrote "savings" for shorthand.) However, it is not a joint account; it is only in my mom's name. Currently, my sister draws upon it as mom's agent (but, of course, that goes away upon death). I have ...
by PaulF
Thu Feb 16, 2017 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to set up small account for incidentals after Mom passes away?
Replies: 19
Views: 1868

Best way to set up small account for incidentals after Mom passes away?

My mother has advanced Alzheimer’s, and we are trying to prepare for her demise. (“We” means her 5 living children.) We think we have the basics in hand, as explained below, but I think we may need one more small piece to the puzzle. My mother will not have a large estate (total assets are about $20...
by PaulF
Tue Feb 14, 2017 9:55 pm
Forum: Investing - Theory, News & General
Topic: Why Bull and Bear?
Replies: 11
Views: 1113

Re: Why Bull and Bear?

dm200 wrote:
David Jay wrote:Why are there interstate highways in Hawaii?


Actually, there aren't any.
by PaulF
Tue Feb 14, 2017 4:19 pm
Forum: Investing - Theory, News & General
Topic: Insurance (Quicken 2017)
Replies: 2
Views: 663

Re: Insurance (Quicken 2017)

IMHO, term life insurance is just an expense, like groceries or gasoline. I listed it under Financial:Life Insurance.

For Whole Life, is it an asset or a liability? Yes, that is the problem with Whole Life policies, isn't it? :annoyed I won't weigh in on this.
by PaulF
Tue Feb 14, 2017 4:05 pm
Forum: Investing - Theory, News & General
Topic: Why Bull and Bear?
Replies: 11
Views: 1113

Re: Why Bull and Bear?

The OED (Oxford English Dictionary) dates bear to early 18th century, and gives this explanation: 8. Stock Exchange. A speculator for a fall; i.e. one who sells stock for delivery at a future date, in the expectation that meanwhile prices will fall, and he will be able to buy in at a lower rate what...
by PaulF
Mon Feb 13, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Ready to retire 65 50k US bond or 1yr SS delay?
Replies: 28
Views: 2539

Re: Ready to retire 65 50k US bond or 1yr SS delay?

Yes, apples are related to oranges, and some comparisons can be made, but not directly. That’s quite the dodge. It wasn't meant to be a dodge. It was meant to agree with you to the greatest extent possible. Upthread, it seemed to me that the numbers 0.08 and 0.14 were being directly compared (by ot...
by PaulF
Sun Feb 12, 2017 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: Ready to retire 65 50k US bond or 1yr SS delay?
Replies: 28
Views: 2539

Re: Ready to retire 65 50k US bond or 1yr SS delay?

Isn't this apples and oranges? The 8% increase for SS cited above is not a yearly return on one's investment... it is a permanent 8% increased payout for the rest of one's natural life. I may not be thinking about this correctly, but I don't think that the 8% and the 14% numbers are measuring the s...
by PaulF
Sun Feb 12, 2017 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Academia female professional seeking your suggestion
Replies: 53
Views: 9631

Re: Academia female professional seeking your suggestion

Any rate, I have read all of the fellow BHer's advice and am glad to see so many warm-hearted folks here. 1. ...[snip] With the increase in rate, the bond index, FSITX has been losing money. Should I just get out of FSITX and move into FTIPX or the other (but it is already 8.3% up...) Or should I j...
by PaulF
Sun Feb 12, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Decumulation phase help
Replies: 14
Views: 1806

Re: Decumulation phase help

May I ask how much "room" you can access in tax-deferred accounts per year? I.e., do you have access only to a employer-based 401K-type plan, or do you have, for example, a SEP plan (with a much higher contribution limit)? Let's assume you want to have an AA of 60/40 in 10 years, and you w...
by PaulF
Sun Feb 12, 2017 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Ready to retire 65 50k US bond or 1yr SS delay?
Replies: 28
Views: 2539

Re: Ready to retire 65 50k US bond or 1yr SS delay?

Isn't this apples and oranges? The 8% increase for SS cited above is not a yearly return on one's investment... it is a permanent 8% increased payout for the rest of one's natural life. I may not be thinking about this correctly, but I don't think that the 8% and the 14% numbers are measuring the s...
by PaulF
Sat Feb 11, 2017 11:00 am
Forum: Investing - Theory, News & General
Topic: 'Won the game', but what factors could potentially derail it?
Replies: 57
Views: 4997

Re: 'Won the game', but what factors could potentially derail it?

Why is that "so unrealistic" for people? I doubt that most BHs would say that anything less than 25X is reasonable, with 20X being a bare minimum. The length of time it takes to get from 25X to 30X, assuming typical returns, is just a few years (20% more 'real' money). Again, I think the ...
by PaulF
Sat Feb 11, 2017 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Ready to retire 65 50k US bond or 1yr SS delay?
Replies: 28
Views: 2539

Re: Ready to retire 65 50k US bond or 1yr SS delay?

I just tracked my year of investing my SS payments, and I earned about 14% over the year. So far, I am ahead of where I would have been had I waited. Luck isn't a strategy Are you suggesting that investment in the market is not a strategy or good? Gee, I thought that what is what this forum is all ...
by PaulF
Thu Feb 09, 2017 5:10 pm
Forum: Investing - Theory, News & General
Topic: Too good to be true? [Bogleheads' model of index investing]
Replies: 48
Views: 6178

Re: Too good to be true? [Bogleheads' model of index investing]

It is "market" return, but I don't like calling it average. More like, in a Golf analogy, par on every hole. No eagles, no birdies, or (in my case) no triple-bogies. A par on every hole. Boring, but way above average. Nice analogy! Now, it raises the question for me as a bad golfer: If I ...
by PaulF
Tue Feb 07, 2017 10:10 am
Forum: Investing - Theory, News & General
Topic: Too good to be true? [Bogleheads' model of index investing]
Replies: 48
Views: 6178

Re: Too good to be true?

Let me add the Cinghiale Postulate: "Financial advisers and brokers are chauffeurs pretending to be mechanics." They claim to have intimate knowledge of the workings of the vehicle, and they tell you that they can fine tune it to purr like a kitten. But, in fact, all they can do is take y...
by PaulF
Fri Feb 03, 2017 12:35 am
Forum: Investing - Theory, News & General
Topic: No Inflation-Adjusted SPIAs at Vanguard
Replies: 120
Views: 6822

Re: No Inflation-Adjusted SPIAs at Vanguard

I think that was a "yes." :confused
by PaulF
Thu Feb 02, 2017 11:41 pm
Forum: Investing - Theory, News & General
Topic: No Inflation-Adjusted SPIAs at Vanguard
Replies: 120
Views: 6822

Re: No Inflation-Adjusted SPIAs at Vanguard

The downside is that it doesn't work I just want to be sure I understand your message. I believe you chose the worst possible starting date (on purpose), right? And your point is that we just don't know when inflation will take off, so this strategy (which might work in normal times) cannot provide...
by PaulF
Thu Feb 02, 2017 6:03 pm
Forum: Investing - Theory, News & General
Topic: No Inflation-Adjusted SPIAs at Vanguard
Replies: 120
Views: 6822

Re: No Inflation-Adjusted SPIAs at Vanguard

willthrill81 wrote:That's an ingenious strategy that I haven't heard of before. Plus, it gives you better cash flow and flexibility today. I can't think of a downside.


Well, there is a potential behavioral pitfall. But that certainly seems like a winning strategy for a disciplined boglehead!
by PaulF
Thu Feb 02, 2017 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Cost of Living Portfolio to Hedge rising costs
Replies: 12
Views: 1114

Re: Cost of Living Portfolio to Hedge rising costs

PandaBear wrote:What is SFR?


I had to google it, but it is evidently "single family residence."