Search found 2639 matches

by SGM
Tue Jun 05, 2018 4:33 am
Forum: Investing - Help with Personal Investments
Topic: Annuity with survivor or not
Replies: 13
Views: 1174

Re: Annuity with survivor or not

I expect my spouse will live longer than I will so I advised her to take her annuity without a survivor benefit. I don't need the benefit. For my own pension I chose a 100% survival benefit. It works for my personal goals.
by SGM
Sun Jun 03, 2018 3:08 am
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 139
Views: 38245

Re: Master thread for Washington DC Area Bogleheads

Hi BobK. Here is a question I would like to see discussed at the meeting. What are good options to keep cash for a projected expense in 18 months given possible increases in interest rates and a preference for municipal bond funds?
by SGM
Fri Jun 01, 2018 3:14 am
Forum: Personal Consumer Issues
Topic: how do you tip on wine at a restaurant
Replies: 209
Views: 12671

Re: how do you tip on wine at a restaurant

I tip based on the whole bill including tax. Generally, I tip 25% or more because it pleases me to tip hard working people.
by SGM
Thu May 31, 2018 3:39 am
Forum: Investing - Help with Personal Investments
Topic: Taking a pension to invest in stocks
Replies: 47
Views: 2640

Re: Taking a pension to invest in stocks

I would delay the pension if still working. The health of the pension plan should be accessible information. He could use the higher payments to help pay his expenses if he is delaying SS later on. The stock market is risky as well and using an advisor he is likely paying higher expense ratios for h...
by SGM
Wed May 30, 2018 4:09 pm
Forum: Investing - Theory, News & General
Topic: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??
Replies: 14
Views: 2055

Re: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??

We do have one investment that is essentially a tax deferred CD, muni bond funds and some treasuries. I do use 50% of incoming dividends and muni interest in calculations projecting out into the future. This may be a little conservative, but I can spend whatever I need. The other income includes far...
by SGM
Tue May 29, 2018 8:10 am
Forum: Investing - Help with Personal Investments
Topic: Does anticipated SS alter today’s allocation?
Replies: 20
Views: 1885

Re: Does anticipated SS alter today’s allocation?

I stopped working/earning a wage at 66. Looking forward to age 70, I saw that SS would more than cover my basic living expenses, so I felt comfortable with the risk of a 60/40 AA. In other words, I don't count SS as a part of my AA, but it is an element in making decisions about my risk tolerance. ...
by SGM
Tue May 29, 2018 3:10 am
Forum: Investing - Help with Personal Investments
Topic: Does anticipated SS alter today’s allocation?
Replies: 20
Views: 1885

Re: Does anticipated SS alter today’s allocation?

I don't think receiving delayed SS in the near future will alter our current allocation. We are still a little on the aggressive side for being 4 years into retirement at 70/30. New money will continue to go into bond funds for the most part. If we had been at 50/50 I might change it to 60/40. As it...
by SGM
Mon May 28, 2018 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Purchase SPIA through Vanguard?
Replies: 18
Views: 1773

Re: Purchase SPIA through Vanguard?

I am not yet ready to buy an SPIA but I have looked at various offers and Vanguard's payout quote was slightly higher than others. I am delaying SS until age 70 and I consider the delay a better annuity payout than annuity payouts available from an insurance company. Vanguard's payout quote and imme...
by SGM
Sun May 27, 2018 5:56 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 150
Views: 22556

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

Buffett can demand higher interest or dividend rates from corporations. I recall 30 years ago he bought $400 million a special UAL preferred issue. Berkshire was getting a higher dividend rate than the preferred that was available to the public. He later wrote off his investment a total loss, howeve...
by SGM
Sun May 27, 2018 1:43 am
Forum: Investing - Help with Personal Investments
Topic: recommended Roth percentage of total investments
Replies: 17
Views: 2849

Re: recommended Roth percentage of total investments

As much as you can contribute or convert at a tax rate less than, equal to, or not too much higher than the tax rate you expect will apply to distributions. I completely agree with the above. I made my first conversion in 2010 when the law changed to allow conversions regardless of income levels. I...
by SGM
Sat May 26, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 4569

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

I assume there will be no capital gains on the sale of the house.

Suggestions to partially annuitize with serial SPIAs seems like the best plan to make the $350k last. It seems to me that the house owner is in the situation where SPIAs can be very helpful.
by SGM
Sat May 26, 2018 12:54 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13640

Re: Renting vs Owning Your Home

Paying off our mortgage years ago with money that would have been in bonds was a good deal for us. What would have been continuing mortgage payments were then put into monthly stock purchases. Prices in this area have doubled since we paid off our mortgage. The stock market did well. If we had bough...
by SGM
Sat May 26, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: Is inflation the greatest risk to retirement portfolios?
Replies: 100
Views: 8387

Re: Is inflation the greatest risk to retirement portfolios?

Among the bigger losses I have seen to those in late retirement and in the early to later stages of dementia is fraud.
by SGM
Tue May 22, 2018 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: How do you stop moving the goal posts.
Replies: 62
Views: 5057

Re: How do you stop moving the goal posts.

I truly believe self worth is not related to either net worth or income. Someone suggested an exercise of writing a "manifesto" which listed the reasons why you are entitled to be a "connoisseur of happiness". The manifesto could be used like an investment plan statement that you can refer to whenev...
by SGM
Mon May 21, 2018 8:02 am
Forum: Investing - Theory, News & General
Topic: Good read on why to keep a simple indexed fund portfolio
Replies: 11
Views: 2321

Re: Good read on why to keep a simple indexed fund portfolio

My Vanguard account had a 7.4% return over the same time period. I know it is not a truly accurate comparison, but it still makes me feel good to have done better than the hedge funds average return and the author's better returns case of 6.2%. I had been looking at my portfolio returns and saying t...
by SGM
Sun May 20, 2018 9:59 am
Forum: Investing - Theory, News & General
Topic: If RMD are large should you still defer into 401k
Replies: 32
Views: 3195

Re: If RMD are large should you still defer into 401k

One thing that worked for my situation (working part time prior to retiring completely) was that I continued to make 401k contributions while at the same time I made Roth conversions. My tax deferred space remained the same while my Roth space increased and taxable account decreased in that particul...
by SGM
Sat May 19, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Assisted Living tax deduction as medical expense
Replies: 23
Views: 1994

Re: Assisted Living tax deduction as medical expense

Bir48die wrote: The only part you can deduct for assisted living is the dedicated nursing part It is actually a little more expansive than that. Quoting from Publication 17, Medical and Dental Expenses: "Medical expenses also include amounts paid for qualified long-term care services . . . . Nursin...
by SGM
Fri May 18, 2018 8:48 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35762

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

We are at a higher rate in retirement than in most of our working years. While working we contributed to tax deferred accounts to the maximum. Roth accounts were not available or allowed for someone with our income until 2010. Most of my working years were before Roth accounts even existed. Most of ...
by SGM
Tue May 15, 2018 3:52 pm
Forum: Local Chapters and Bogleheads Community
Topic: Yes, I'm 89 all right! [Jack Bogle]
Replies: 126
Views: 10479

Re: Yes, I'm 89 all right!

Happy Birthday Jack. Your work output has been an inspiration. Your mission has been wonderful for investors everywhere. Thank you.
by SGM
Tue May 15, 2018 4:33 am
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 140
Views: 12241

Re: The front page is ugly

This site is refreshingly simple to read unlike most other sites that require constant scrolling and are slow to load. I don't need flashiness to distract from content.
by SGM
Mon May 14, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: When to claim Social Security: two reasons not to wait
Replies: 68
Views: 12054

Re: When to claim Social Security: two reasons not to wait

I agree that the majority of people are happy with their decision regardless of whether they took SS late or early. I do know a few widows who wish their higher earning husbands had delayed taking SS. As I have earlier stated my chief reason to delay taking SS until 70 was I considered it a form of ...
by SGM
Sat May 12, 2018 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Living off Dividends of Vanguard Total Stock
Replies: 49
Views: 6803

Re: Living off Dividends of Vanguard Total Stock

Sometimes internet disagreements remind of a long ago work event. A new employee who was loudly and publicly complaining for an extended period of time, his exasperated boss after many attempts to mollify the employee said, " I need to go to the grocery store." Why? ... came the continued heated res...
by SGM
Fri May 11, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Living off Dividends of Vanguard Total Stock
Replies: 49
Views: 6803

Re: Living off Dividends of Vanguard Total Stock

With a large enough portfolio one can live off the dividends. If you are successful with this plan you will leave a legacy. Long Term capital gains are more tax efficient than dividend income in taxable accounts. Being 100% in stock in retirement is a little risky. I was 100% in stock for many years...
by SGM
Thu May 10, 2018 4:18 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6992

Re: Factors Suggesting One Should Buy SPIA

...I have converted all my tax deferred accounts to RMDs over a period of about 5 years. This was done while I was either working part-time and still making solo 401k deposits and while retired before taking delayed SS... Perhaps you meant all tax deferred accounts to Roth IRAs? Oops. Thank you Wiz...
by SGM
Wed May 09, 2018 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6992

Re: Factors Suggesting One Should Buy SPIA

I don't have time to go into details about Joe Tomlinson's article. People with no pension or annuity with a conservative portfolio have a 67.4% probability of running out of money in a 30 year retirement using a 4.5% inflation adjusted withdrawal rate. The probability of running out of money drops...
by SGM
Wed May 09, 2018 8:19 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6992

Re: Factors Suggesting One Should Buy SPIA

Joe Tomlinson shows how delaying SS and adding a SPIA will positively affect a portfolio during retirement. I have been introduced to Joe at several SS research symposia. More recently I have been reading his research and am impressed. He also looks at going from 50 to 75% stock allocation and a re...
by SGM
Wed May 09, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6992

Re: Educating an adult child about investing

I am in the process of educating one of my adult children who will be attending the BH national meeting for the first time this year. SGM: In my opinion, this is one of the best things you can do to start an adult child on the road to investment success. Best wishes Taylor Thank you Taylor. A trip ...
by SGM
Tue May 08, 2018 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6992

Re: Factors Suggesting One Should Buy SPIA

Joe Tomlinson shows how delaying SS and adding a SPIA will positively affect a portfolio during retirement. I have been introduced to Joe at several SS research symposia. More recently I have been reading his research and am impressed. He also looks at going from 50 to 75% stock allocation and a re...
by SGM
Tue May 08, 2018 4:47 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6992

Re: Factors Suggesting One Should Buy SPIA

Joe Tomlinson shows how delaying SS and adding a SPIA will positively affect a portfolio during retirement. I have been introduced to Joe at several SS research symposia. More recently I have been reading his research and am impressed. He also looks at going from 50 to 75% stock allocation and a rev...
by SGM
Sun May 06, 2018 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Jonathan Clements "Where Money Grows Up"
Replies: 9
Views: 2072

Re: Jonathan Clements "Where Money Grows Up"

I have bought Clements books for my adult children to read. I never made a significant impulse purchase, but I do indulge myself with the purchase of small items on impulse. Certain annuities I like and have educated myself about those that are rip-offs. Expensive kitchen remodels done by people who...
by SGM
Sat May 05, 2018 4:13 am
Forum: Investing - Help with Personal Investments
Topic: How are you widow-proofing?
Replies: 35
Views: 4704

Re: How are you widow-proofing?

All tax deferred accounts are now in Roth accounts so there are no RMDs to be concerned with. Dividends, SS, pension, TIAA annuity, and some rental income are automatically deposited into a local bank account. I am delaying SS until 70 so spouse will receive the maximum amount as a widow in the like...
by SGM
Fri May 04, 2018 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Downloadable Social Security Benefit Estimator (repost)
Replies: 42
Views: 5507

Re: Downloadable Social Security Benefit Estimator (repost)

I used your spreadsheet and compared it to the SS website on-line calculator. Your program came up with a result $21 a month higher for taking SS at age 70 than the SS on-line calculator. So I am going with your estimate. :wink: I had trouble downloading the SS website detailed calculator and can no...
by SGM
Wed May 02, 2018 8:15 am
Forum: Investing - Help with Personal Investments
Topic: Berkshire Hathaway B
Replies: 65
Views: 6699

Re: Berkshire Hathaway B

A couple of things happened when I decided to sell some Berkshire. Buffett got older and so did I. I wanted to spend less time analyzing individual stocks and more time enjoying life. I did fairly well with most of my individual stocks. I had a couple of losers too as is inevitable. I would rather h...
by SGM
Wed May 02, 2018 3:18 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 3602
Views: 1027752

Re: What Movie Have You Recently Watched?

Borg/McEnroe was a good film. I never knew how stressed Borg was and what a temper he had beginning as a top amateur as a kid. Borg was banned from top amateur play for 6 months when young. His future coach was almost a second father too him. Borg became obsessive compulsive and remained so in his 2...
by SGM
Wed May 02, 2018 3:03 am
Forum: Investing - Help with Personal Investments
Topic: Berkshire Hathaway B
Replies: 65
Views: 6699

Re: Berkshire Hathaway B

We have had Berkshire stock for many years and held it in a taxable account only. It did quite well early on and became too large a part of our portfolio. It is now only about 1% of our holdings as we sold a lot to become more diversified. It is tax efficient as it has no dividends.
by SGM
Tue May 01, 2018 4:33 am
Forum: Personal Finance (Not Investing)
Topic: Include dividends/interest in savings rate calculation ?
Replies: 26
Views: 1591

Re: Include dividends/interest in savings rate calculation ?

I never included unearned income when considering my savings rate and certainly found the simple calculation to be helpful. There was a time when we both worked and saved 100% of the higher salary. Later when I had my own S corp I was able to put a significant percentage in a 401k including profit s...
by SGM
Sun Apr 29, 2018 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Guaranteed Annuity
Replies: 83
Views: 3900

Re: TIAA Guaranteed Annuity

...A Washington Post article in 2016 discussed tontines and states that TIAA-CREF has a tontine-like quality. This means that as annuitants die off at least part of what would have been their payout is shared with living annuitants. I wouldn't buy a variable annuity, but the CREF annuity under the ...
by SGM
Sun Apr 29, 2018 9:41 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Guaranteed Annuity
Replies: 83
Views: 3900

Re: TIAA Guaranteed Annuity

DW has a TIAA-CREF annuity from a university job she had over 30 years ago. She transferred most of the TIAA traditional to CREF global over a period of 9 years. She annuitized it in her 60s. The payout has been going up every year for both the TIAA traditional and the CREF variable annuity. I do no...
by SGM
Sat Apr 28, 2018 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Last logon not registering at Vanguard
Replies: 3
Views: 447

Last logon not registering at Vanguard

Yesterday I logged into Vanguard at 6:40. A minute later I looked up at the last logon and it stated my last logon was 1 minute earlier. Actually my last logon was the previous day. Today I logged on and last logon was left blank. Another family member's account had an accurate last logon using the ...
by SGM
Fri Apr 27, 2018 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified Joint Venture (QJV) questions
Replies: 5
Views: 337

Re: Qualified Joint Venture (QJV) questions

We have not used a QJV. I did have an S-corp for my now retired medical practice and hired my spouse as a sole part-time employee for a few years. I was doing the work I hired her for initially myself. My main purpose in hiring her was to increase tax deferred space. All of her salary went into a co...
by SGM
Wed Apr 25, 2018 4:07 am
Forum: Investing - Theory, News & General
Topic: Help poke holes? Roger Ibbotson recommends a Fixed Index Annuity as a partial bond alternative.
Replies: 23
Views: 1822

Re: Help poke holes? Roger Ibbotson recommends a Fixed Index Annuity as a partial bond alternative.

These fixed index annuities or equity indexed annuities have many hidden fees. I long ago read the warnings from FINRA. I would consider buying SPIAs with a small portion of my assets as a source of fixed income late in life. Insurance reps and financial advisors would like you to buy fixed index an...
by SGM
Tue Apr 24, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Considering No 401K Contribution or Profit Sharing For 2018
Replies: 12
Views: 1216

Re: Considering No 401K Contribution or Profit Sharing For 2018

You could continue to add to your 401k and profit sharing as well as convert a similar amount in some traditional accounts to Roth accounts.

If you are already at the maximum earnings for SS it might be worthwhile to save some FICA taxes on the profit sharing amounts.
by SGM
Mon Apr 23, 2018 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend fund in taxable account during retirement, yea or nay?
Replies: 33
Views: 2983

Re: Dividend fund in taxable account during retirement, yea or nay?

Qualified dividends are not taxed the same as ordinary income. However, LT capital gains taxes are more efficient as the total amount you withdraw is not taxed. The new tax law has decreased the taxes on pass through income such as REIT dividends. There is a 20% discount which I discussed on another...
by SGM
Mon Apr 23, 2018 2:25 pm
Forum: Personal Consumer Issues
Topic: New retirees: so whatdayathink ?
Replies: 97
Views: 11887

Re: New retirees: so whatdayathink ?

It will be 4 years in August since I retired. We don't travel a lot, but expect to do more as we were reluctant to leave elderly parents who are now gone. I like running into my old patients. I ran into one today at lunch. The lacrosse backstop I gave him years ago for his grandson was put to good u...
by SGM
Sun Apr 22, 2018 2:06 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 33028

Re: KF's simple rules to achieve FI

I like 529s for college education, because the earnings are not taxed and are funded out of taxable accounts. This decreases taxes on investments a little every year the funds are outside of a taxable account. In our state there is a tax credit for investing in 529s as well. I have never had an issu...
by SGM
Sat Apr 21, 2018 4:22 pm
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 103
Views: 9788

Re: NYT article: Everyone should hire a financial planner

Certainly not everyone needs a financial planner. I have been investing for over 40 years without using a financial advisor. I did get one free review of my portfolio from Vanguard and I partially followed their advice. Is this the Voyager Select (and above) included financial advisor or something ...
by SGM
Sat Apr 21, 2018 8:17 am
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 103
Views: 9788

Re: NYT article: Everyone should hire a financial planner

Certainly not everyone needs a financial planner. I have been investing for over 40 years without using a financial advisor. I did get one free review of my portfolio from Vanguard and I partially followed their advice. I had an off the cuff discussion with one of the very well respected advisors wh...
by SGM
Fri Apr 20, 2018 4:08 am
Forum: Personal Consumer Issues
Topic: Factor in evaluating Physicians
Replies: 86
Views: 5276

Re: Factor in evaluating Physicians

Years ago a young attending would try to shame the residents who were receiving pens and eating sandwiches provided by drug reps. That young attending with self assessed "superior morals" was later sanctioned by the State Board of Physicians for illicit drug use. :twisted: Advertising of drugs direc...
by SGM
Thu Apr 19, 2018 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: “The Smell of Retiree Mon$y...”
Replies: 57
Views: 8720

Re: “The Smell of Retiree Mon$y...”

This pestering makes us less likely to donate cash. I pay higher tips for service than I once did. If a charity wastes money on advertising and mailing us useless stuff we will discontinue giving to the charities. We don't respond to unsolicited phone calls from any charity or business. We do volunt...
by SGM
Wed Apr 18, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Are you keeping more in cash?
Replies: 31
Views: 4736

Re: Are you keeping more in cash?

Yes. We have received some cash and have some current temporarily higher expenses so I am not investing it in anything risky. I don't organize investments in buckets, but it does feel like I have a cash bucket right now. I am 4 years into retirement and my portfolio has done quite well. I am aware o...