Search found 192 matches

by PaulF
Fri Dec 13, 2019 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Is this even possible for Roth conversion strategy?
Replies: 8
Views: 872

Re: Is this even possible for Roth conversion strategy?

My question is this: Could I contribute say 3000 to an IRA in order to reduce our income and get social security eliminated from the taxable part, and then convert the 25,000 at a much lower tax? Is this advisable? Crazy? I am not 100% sure I understood your intention, so forgive me if this does no...
by PaulF
Sat Nov 09, 2019 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: When to move to FL? (tax implications and more)
Replies: 13
Views: 1495

Re: When to move to FL? (tax implications and more)

jebmke wrote:
Sat Nov 09, 2019 6:35 pm
I filed a very similar form when I moved from Milwaukee to Belgium in the middle of 2003.

I am confused. Belgium is still in Wisconsin, just ~35 miles north of Milwaukee! :mrgreen:
by PaulF
Sat Nov 09, 2019 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: When to move to FL? (tax implications and more)
Replies: 13
Views: 1495

Re: When to move to FL? (tax implications and more)

Pretty sure these could shed light on your questions: https://www.revenue.wi.gov/DOR%20Publications/pb122.pdf (Tax information of non- and part-year residents) https://www.revenue.wi.gov/Pages/Form/2018Individual.aspx (general forms for individuals) https://www.revenue.wi.gov/TaxForms2017through2019...
by PaulF
Fri Nov 08, 2019 11:32 pm
Forum: Investing - Theory, News & General
Topic: Nominal or inflation-protected bonds?
Replies: 42
Views: 2933

Re: Two Investment Gems

Amadis_of_Gaul wrote: Sooo. . . maybe the moral of the story is that I need to accept uncertainty about the future rather than trying to analyze myself into the illusion of certainty and control. PaulF wrote:This is one of the most sagacious things I have read on BH (or M*) in my time (~13 years) h...
by PaulF
Thu Nov 07, 2019 10:07 pm
Forum: Investing - Theory, News & General
Topic: Nominal or inflation-protected bonds?
Replies: 42
Views: 2933

Re: Nominal or inflation-protected bonds?

Amadis_of_Gaul wrote:
Mon Nov 04, 2019 9:44 am
Sooo. . . maybe the moral of the story is that I need to accept uncertainty about the future rather than trying to analyze myself into the illusion of certainty and control.
This is one of the most sagacious things I have read on BH (or M*) in my time (~13 years) here.
by PaulF
Sun Nov 03, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: Unique withdrawal method
Replies: 65
Views: 7166

Re: Unique withdrawal method

We live and die by the "Trinity Study". https://www.forbes.com/sites/wadepfau/2018/01/16/the-trinity-study-and-portfolio-success-rates-updated-to-2018/#573275016860 I have a question about this then and how to interpret these results. If I wish to withdraw 5.66% of funds for 8 years, and then 3.13%...
by PaulF
Fri Oct 04, 2019 3:04 pm
Forum: Investing - Theory, News & General
Topic: Insurance for mutual funds to guarantee index returns?
Replies: 25
Views: 2028

Re: Insurance for mutual funds to guarantee index returns?

The point is that the entities best-positioned to know whether they’re going to outperform are the fund managers/companies themselves. So they could self-insure and guarantee at least an index return. If they’re so confident in their own abilities, such a guarantee shouldn’t cost them anything, and...
by PaulF
Tue Oct 01, 2019 5:38 pm
Forum: Investing - Theory, News & General
Topic: Comparing the indices
Replies: 6
Views: 615

Re: Comparing the indices

You can get the list of S&P 500, S&P 400, and S&P 1000 indices on Wikipedia, believe it or not. I believe that the 500 + the 1000 gives you the 1500. https://en.wikipedia.org/wiki/List_of_S%26P_500_companies https://en.wikipedia.org/wiki/List_of_S%26P_400_companies https://en.wikipedia.org/wiki/List...
by PaulF
Mon May 27, 2019 1:08 pm
Forum: Investing - Theory, News & General
Topic: What is my current Social Security Benefit/PIA?
Replies: 19
Views: 2700

Re: What is my current Social Security Benefit/PIA?

Also, the "Case Study Sheet" spreadsheet from Mr. Money Mustache has a tab in the spreadsheet for SS calculations: http://forum.mrmoneymustache.com/forum- ... t-updates/. Confusingly, the name of the document is "Cashflow.xls".
by PaulF
Mon May 20, 2019 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Splitting a condo purchase with friend?
Replies: 20
Views: 1745

Re: Splitting a condo purchase with friend?

Yeah, most of the negative responses are valid. It's all off. More for other reasons than for everyone's (valid) concerns. But I am not unhappy that I don't need to resolve these issues. This arrangement genuinely would have had some upside for us (along with a lot of risk), but it was MOSTLY about ...
by PaulF
Mon May 20, 2019 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security replacement annuity -- Is there such a product?
Replies: 64
Views: 5177

Re: Social Security replacement annuity -- Is there such a product?

I was unsure where the idea arose that I was seeking some magic wand that allowed people to avoid saving. Then, I realized that the fault was mine: In trying to steer people to the risk-pooling aspects of my idea, I implied there was not a pot of money available to buy either a conventional annuity ...
by PaulF
Sun May 19, 2019 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security replacement annuity -- Is there such a product?
Replies: 64
Views: 5177

Re: Social Security replacement annuity -- Is there such a product?

SS increases with inflation, whole life doesn’t. Therefore the payout does decrease in real terms every year you get older. Good point on the inflation angle. I will think about this. But is seems to me that insurance devalues payouts at ~3% p.a., but the probability of death increases at, say, ~10...
by PaulF
Sun May 19, 2019 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security replacement annuity -- Is there such a product?
Replies: 64
Views: 5177

Re: Social Security replacement annuity -- Is there such a product?

For each year that goes by, the risk of dying goes up (so the life insurance component should grow more expensive). However, the expected payout period for the survivor goes down (so the annuity component should grow cheaper). What you want is whole life insurance. It is expensive, the return is po...
by PaulF
Sun May 19, 2019 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security replacement annuity -- Is there such a product?
Replies: 64
Views: 5177

Re: Social Security replacement annuity -- Is there such a product?

Insurance is for an unexpected risk that you can not handle with your assets. One spouse dying and leaving the other spouse with less SS is very highly [probable]. I certainly agree with you that to the extent that this scenario is probable, it makes it less like insurance and more like saving up f...
by PaulF
Sun May 19, 2019 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security replacement annuity -- Is there such a product?
Replies: 64
Views: 5177

Re: Social Security replacement annuity -- Is there such a product?

The cost of an annuity or the total of the premiums for the life insurance probably aren't that much different since you are looking for the same benefit for essentially the same risk. You may be right on that. I was (am?) thinking that by pooling risks across a group, individuals (well, couples) c...
by PaulF
Sun May 19, 2019 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security replacement annuity -- Is there such a product?
Replies: 64
Views: 5177

Re: Social Security replacement annuity -- Is there such a product?

Depending on the details, there is a partial survivor ship feature of Social Security. My wife, for example, gets monthly SS based on my income over the decades. If I die first, she will get my, much higher, SS monthly income instead of her lower income. As it happens, my wife's and my SS payouts w...
by PaulF
Sun May 19, 2019 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security replacement annuity -- Is there such a product?
Replies: 64
Views: 5177

Re: Social Security replacement annuity -- Is there such a product?

Perhaps, at the death of the first spouse, purchase an annuity to provide the lifetime income needed or desired. This. With what money? I thought it was obvious, but I was looking for a solution that hedged or transferred risk (in exchange for an up-front premium). You know, like insurance. Unless ...
by PaulF
Sun May 19, 2019 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security replacement annuity -- Is there such a product?
Replies: 64
Views: 5177

Social Security replacement annuity -- Is there such a product?

Most annuities offer a survivorship option, but, as we all know, Social Security does not. When one member of a couple dies, the survivor loses the household income from spouse's SS; for households that rely on SS to a large extent, this loss is serious. Of course, one could carry life insurance to ...
by PaulF
Sun May 19, 2019 11:18 am
Forum: Personal Investments
Topic: Deferred Comp 457 Plan Question
Replies: 6
Views: 540

Re: Deferred Comp 457 Plan Question

You didn't ask, but have you read this to help you decide whether to contribute to the Roth or Traditional 457 options? https://www.bogleheads.org/wiki/Traditional_versus_Roth
by PaulF
Sat May 18, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Splitting a condo purchase with friend?
Replies: 20
Views: 1745

Re: Splitting a condo purchase with friend?

Just wanted to pop in and thank everyone for their input! We will be having a frank discussion tomorrow. On a small, side note: I overstated the "significant advantages" for the condo association. AFAIK, the only difference is that an owner can have a dog, but a renter cannot. (She does want a dog, ...
by PaulF
Sat May 18, 2019 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Splitting a condo purchase with friend?
Replies: 20
Views: 1745

Splitting a condo purchase with friend?

My wife and I are about 2 years away from an early retirement. At that time, we plan to snowbird in Florida. I would describe our plan as living in Florida (~8 mos/yr), and visiting Wisconsin in the summer. We would likely not own any property in Wisconsin. A very good friend, with whom we have coha...
by PaulF
Mon Apr 08, 2019 9:40 pm
Forum: Investing - Theory, News & General
Topic: Retirement bonds, aka SeLFIES
Replies: 92
Views: 13131

Re: Retirement bonds, aka SeLFIES

This is off-topic, Bob, but you may get a laugh out of this. I always assumed that your avatar photo was one of you. Imagine my surprise when, partially inspired by your writings, I was researching the founders of lifecyle financing and came across a photo of Franco Modigliani! 8-)
by PaulF
Thu Apr 04, 2019 10:36 pm
Forum: Investing - Theory, News & General
Topic: Good resources for liability matching
Replies: 21
Views: 1958

Re: Good resources for liability matching

Another vote for Zwecher.
by PaulF
Fri Mar 08, 2019 5:49 pm
Forum: Personal Investments
Topic: WRS Additional Contributions
Replies: 27
Views: 1081

Re: WRS Additional Contributions

One more piece of info: WRS allows these additional contributions to be annuitized in a date-certain fashion. Thus, I considered using this vehicle to provide a bridge to SS. For me, this was "cheaper" than, say, buying a TIPS ladder. However, we decided not to pursue the idea, favoring keeping mor...
by PaulF
Fri Mar 08, 2019 11:23 am
Forum: Personal Investments
Topic: WRS Additional Contributions
Replies: 27
Views: 1081

Re: WRS Additional Contributions

I currently max out my roth 403b and my hsa with a little left over for the roth 457. Most of my 457 contribution would be taken as pay to send in for additional pension contributions at the end of the year while sitting in a money market account from Jan-Nov. 403b and hsa are maxed, 457 is not and...
by PaulF
Fri Mar 08, 2019 10:59 am
Forum: Personal Investments
Topic: WRS Additional Contributions
Replies: 27
Views: 1081

Re: WRS Additional Contributions

I have also considered using this vehicle. I believe that perhaps the most important question in deciding between additional contributions and the Roth 457 is: How much of your nest egg do you want to annuitize, and how much would you prefer to keep accessible in accounts? (As spencer99 alluded to a...
by PaulF
Thu Mar 07, 2019 10:34 pm
Forum: Investing - Theory, News & General
Topic: Best account for early retirement funds
Replies: 11
Views: 1814

Re: Best account for early retirement funds

If you (or someone in your position) has access to a 457 account, that is probably the best for ER. (No penalty for withdrawing before 59.5.)
by PaulF
Sat Feb 16, 2019 5:38 pm
Forum: Investing - Theory, News & General
Topic: rebalancing during decumulation phase
Replies: 61
Views: 4747

Re: rebalancing during decumulation phase

I have not "been there, done that." However, I am having a bit of trouble seeing the essential part of your problem. AFAIK, the only thing you really want to avoid is buying and selling stocks in taxable. You can freely buy and sell in IRA and Roth. Another salient point is that, in your situation, ...
by PaulF
Sat Feb 16, 2019 2:44 pm
Forum: Investing - Theory, News & General
Topic: Knowledge priorities for new investors
Replies: 12
Views: 1225

Re: Knowledge priorities for new investors

I would like to be able to pick my own stock and get returns better than S&P 500. Serious question: Why is that your goal? In my opinion, your goal for investing should be to give you the highest probability to meet your future financial needs. You do not need to beat the S&P 500 to do that. You "j...
by PaulF
Wed Feb 06, 2019 5:45 pm
Forum: Personal Investments
Topic: Saving Enough? Too Much? Advice wanted.
Replies: 30
Views: 2910

Re: Saving Enough? Too Much? Advice wanted.

It seems like you have already gotten the right advice (I think ExitStageLeft and onourway really nailed it). I am just chiming in to relate that I had a similar experience (other than the separate finances part!). My spouse and I did, in fact, oversave. I mean, we didn't know any better! We just sa...
by PaulF
Fri Feb 01, 2019 12:33 pm
Forum: Personal Investments
Topic: Rebalancing into this new portfolio?
Replies: 3
Views: 220

Re: Rebalancing into this new portfolio?

If you are putting your small-caps in tax-advantaged accounts, then why are you choosing VTMSX (Vanguard Tax Managed Small Cap) ?

Overall, I do not see anything wrong with your plan. You are making a modest bet on value and small, which may or may not be rewarded, but I think you knew that! :D
by PaulF
Sun Jan 27, 2019 4:03 pm
Forum: Personal Investments
Topic: Investment Allocation - Bucket Approach
Replies: 26
Views: 1917

Re: Investment Allocation - Bucket Approach

IMHO, the fundamental question to ask about any proposed bucket strategy is not the AA. Rather, it is the rules you are planning on for refilling your short-term bucket. Trivial example: if you propose to refill it to $300k every year, then you are ACTUALLY spending from bucket 2 (stocks). You need ...
by PaulF
Sat Jan 26, 2019 10:44 am
Forum: Personal Investments
Topic: Alternatives to Total International Stock Index Fund for international investing
Replies: 22
Views: 3422

Re: Alternatives to Total International Stock Index Fund for international investing

Hello all- my current allocation is 100% US stocks, but I'm thinking I should allocate a small bit to international stocks simply for diversification purposes and not putting all eggs in one basket. I'm wondering if there are any viable alternatives to the Total International Stock Index Fund for i...
by PaulF
Fri Jan 25, 2019 10:20 am
Forum: Investing - Theory, News & General
Topic: Combination of "Safety First" and "Probability Based" withdrawal strategies
Replies: 54
Views: 3836

Re: Combination of "Safety First" and "Probability Based" withdrawal strategies

My problem with the OP's plan is not the risk level itself, but in where the risk is being placed. He is insuring consumption from ages 55-70 and taking on some risk (though small, given the size of the savings) from ages 71-100. I see no reason why consumption risk should be eliminated in the near...
by PaulF
Sun Jan 06, 2019 2:25 pm
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 6697

Re: How do you view a savings surplus in retirement?

Well, if it makes you feel any better, I am all over the map on this question. For a few reasons, I am 2 years out from retiring, but it seems that we will be moderately overfunded. I have gone back and forth between the alternatives you inquired about. Sometimes I think I am going to buy a more exp...
by PaulF
Sat Jan 05, 2019 12:38 pm
Forum: Investing - Theory, News & General
Topic: Total Investing Risk
Replies: 18
Views: 1570

Re: Total Investing Risk

Of course, that risk of loss then leads into other related risks, such as not being able to fund one's life expenses, provide for dependents, etc. But shouldn't this shortfall risk be your primary concern (instead of "investing risk")? And, if so, you might recognize that NOT investing in equities ...
by PaulF
Fri Jan 04, 2019 12:31 pm
Forum: Investing - Theory, News & General
Topic: US Stock Market Returns in the 21st Century
Replies: 92
Views: 4977

Re: US Stock Market Returns in the 21st Century

Why do you think that the year 2000 belongs to the 21st century?
by PaulF
Mon Dec 31, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Another Annuity Question
Replies: 14
Views: 907

Re: Another Annuity Question

For what it is worth, I believe your numbers correspond to a 3.52% IRR using the Excel RATE function:

Code: Select all

=12*RATE(180,3485,-488068,0,1)
Edit: Ah, I did not see that you had posted the "periodic rate = 3.31%." Not sure exactly what the discrepancy is.
by PaulF
Thu Dec 20, 2018 8:12 pm
Forum: Investing - Theory, News & General
Topic: "The Bucket Approach for Retirement: A Suboptimal Behavioral Trick?"
Replies: 33
Views: 3483

Re: "The Bucket Approach for Retirement: A Suboptimal Behavioral Trick?"

Having read the paper now, I found the choice of buckets a bit surprising. For simplicity, I imagine, the author only considered 2-bucket strategies, with a cash bucket and a stock bucket. Most of the article dealt with 3 different strategies to refill the cash bucket, but in each case the cash buc...
by PaulF
Thu Dec 20, 2018 1:43 pm
Forum: Investing - Theory, News & General
Topic: "The Bucket Approach for Retirement: A Suboptimal Behavioral Trick?"
Replies: 33
Views: 3483

Re: "The Bucket Approach for Retirement: A Suboptimal Behavioral Trick?"

Having read the paper now, I found the choice of buckets a bit surprising. For simplicity, I imagine, the author only considered 2-bucket strategies, with a cash bucket and a stock bucket. Most of the article dealt with 3 different strategies to refill the cash bucket, but in each case the cash buck...
by PaulF
Thu Dec 20, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: "The Bucket Approach for Retirement: A Suboptimal Behavioral Trick?"
Replies: 33
Views: 3483

Re: "The Bucket Approach for Retirement: A Suboptimal Behavioral Trick?"

AlohaJoe, I also want to thank you for bringing this to my attention and for breaking the paper down a bit. Your comments and investigations on bucketing approaches have been quite useful to me over the years.
by PaulF
Wed Dec 12, 2018 11:49 am
Forum: Personal Investments
Topic: New Retiree Investment Strategy
Replies: 21
Views: 2440

Re: New Retiree Investment Stratedgy

magneto wrote:
Tue Dec 11, 2018 1:51 pm
Chapter 18 of Frank Armstrong's 'The Informed Investor', takes a look at the retirement issue.
Most worthless financial book I have ever seen. Nothing specific. I couldn't return it to the library fast enough.
by PaulF
Fri Nov 23, 2018 10:57 pm
Forum: Investing - Theory, News & General
Topic: "Investing" conversations at work
Replies: 32
Views: 4487

Re: "Investing" conversations at work

On the other hand... two decades ago, a kindly older colleague introduced me to the idea that costs matter, the notion of passively managed funds, what their advantages were, etc. I am forever grateful that he took the time and initiative to present the facts that all BHs can embrace.
by PaulF
Sat Nov 17, 2018 11:44 am
Forum: Investing - Theory, News & General
Topic: Financial Engines recommends spending Roth money first
Replies: 25
Views: 2804

Re: Financial Engines recommends spending Roth money first

Ready3Retire wrote:
Sat Nov 17, 2018 10:02 am

2) He then showed me the results of their analysis using their proprietary program which is just a fancier version of i-ORP.
Just curious: Have you checked I-ORP to see if it corroborates that analysis?
by PaulF
Thu Nov 15, 2018 10:03 am
Forum: Investing - Theory, News & General
Topic: "What If You Retire At a Stock Market Peak?" - by Ben Carlson
Replies: 49
Views: 6586

Re: "What If You Retire At a Stock Market Peak?" - by Ben Carlson

So you saw the need to point out it is mentioned on our page, but don't see any logic in being asked a follow-up question as to whether you're aware of any expert that endorses it? :confused Yes, that is right. You had ably made that assertion already upthread, and I was not contesting it. Just cor...
by PaulF
Wed Nov 14, 2018 8:42 pm
Forum: Investing - Theory, News & General
Topic: "What If You Retire At a Stock Market Peak?" - by Ben Carlson
Replies: 49
Views: 6586

Re: "What If You Retire At a Stock Market Peak?" - by Ben Carlson

Thanks. You are welcome. Now do you have a name of just one retirement income expert that actually recommends that method to be utilized for retirement income. Ummm, no. Or if there isn't one, name one major financial institution (e.g. Vanguard, Fidelity) that would recommend the constant-dollar wi...
by PaulF
Wed Nov 14, 2018 12:20 pm
Forum: Investing - Theory, News & General
Topic: "What If You Retire At a Stock Market Peak?" - by Ben Carlson
Replies: 49
Views: 6586

Re: "What If You Retire At a Stock Market Peak?" - by Ben Carlson

For these examples I used a simple 4% rule, taking out a flat 4% of the portfolio every single year regardless of the portfolio’s performance or the economic conditions at the time. One of the biggest risks in retirement is inflation because it impacts the purchasing power of your portfolio over ti...