Search found 549 matches

by CnC
Wed May 16, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Thanks for the help! Putting it all together
Replies: 4
Views: 614

Re: Thanks for the help! Putting it all together

Everything looks fine, I'm not sure what imput you are looking for. It's a bit different than my tilt but nothing wrong with it.
by CnC
Wed May 16, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Fellow non-529ers
Replies: 43
Views: 3436

Re: Fellow non-529ers

Don't 529 plans have limits to what you can choose and cause you some additional risk to funding it with taxable?

I'm from Illinois by the way.
by CnC
Tue May 15, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?
Replies: 71
Views: 11442

Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Seriously though has noone mentioned annuity option. I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year. A 40 year old could buy an annuity for 1 million that pays 46k a year for life. If he is old enough he could get an annuity that p...
by CnC
Tue May 15, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?
Replies: 71
Views: 11442

Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Seriously though has noone mentioned annuity option.


I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year.


A 40 year old could buy an annuity for 1 million that pays 46k a year for life.
by CnC
Tue May 15, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Long Bond ETF VCLT .in 2008 scenario?
Replies: 6
Views: 560

Re: Vanguard Long Bond ETF VCLT .in 2008 scenario?

You are going about it wrong wanting to know how long term government bonds did in 2008.

2008 was good for long term govt bonds. Just wait until inflation hits 3.5% and bond yields hit 5.5 and then see how those long term govt bonds do.
by CnC
Tue May 15, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: At a crossroads. Does my plan make sense?
Replies: 29
Views: 3019

Re: At a crossroads. Does my plan make sense?

Your plan is fine. I would take the payout and invest it. Honestly as long as you don't invest it all in Bitcoin or some random futures market you are going to be just fine. I would talk about to your employer about Cobra and then just be gone. If you loved your job you could stay working, but there...
by CnC
Tue May 15, 2018 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Prime Money Market instead of bond fund
Replies: 40
Views: 6122

Re: Vanguard Prime Money Market instead of bond fund

I understand the mantra "don't time the market" I really do. But how does that coincide with knowingly locking in historically low yields in bonds? There is little to no evidence to suggest that your investment will produce any more money than the yield states which is quite a bit below ±50% of the ...
by CnC
Tue May 15, 2018 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Prime Money Market instead of bond fund
Replies: 40
Views: 6122

Re: Vanguard Prime Money Market instead of bond fund

For how long? You can chart the total return of VBTLX and VMMXX and see that VBTLX outperforms in the long run. That was in a bond bull market. Perhaps if the bear is here... history won't look like the future? That is my concern...most people here have never even seen a bond bear market and I wond...
by CnC
Mon May 14, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: New Job - Use High Fee 401k With Match or Other?
Replies: 31
Views: 1554

Re: New Job - Use High Fee 401k With Match or Other?

[ There would be no way to contribute $2,000 to get the 4% match on her annual salary vs the 4% match of her salary from July 1 to Dec 31st correct? Correct unless there are special agreements all matches are done on a paycheck to paycheck basis. This also means if you accidentally Mac out your 401...
by CnC
Mon May 14, 2018 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Requesting advice on pension service credit purchase.
Replies: 5
Views: 429

Re: Requesting advice on pension service credit purchase.

That seems awfully pricey in my opinion. Paying 23065 to add 1790 a year doesn't seem to be that good of a deal. Basically you are getting a 7.8% return per year with no guaranteed principal. My pension offers a similar rate for a 55 year old retiring, I would have thought being 65 would bump it up ...
by CnC
Mon May 14, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: New Job - Use High Fee 401k With Match or Other?
Replies: 31
Views: 1554

Re: New Job - Use High Fee 401k With Match or Other?

Are you sure you are looking at that correctly? I didn't think that's how vesting works, in our case it wasn't. In everything I have encountered you still get the full match years 1-4. But if you leave before year 5 you only get to take with you x % of what they put in. Meaning let's say her salary ...
by CnC
Sun May 13, 2018 11:22 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement - aka - plan B.
Replies: 7
Views: 2070

Re: Early Retirement - aka - plan B.

Your question is very hard to understand are you asking if 7.5m will be enough to withdraw 300k a year on for life of an early retirement be or what? 7.5 million is by very definition the amount required of a 4% withdrawal of 300k a year. Money is money other than when you can withdraw it and how mu...
by CnC
Sat May 12, 2018 10:55 pm
Forum: Investing - Help with Personal Investments
Topic: How close do you cut your monthly surplus?
Replies: 22
Views: 3317

Re: How close do you cut your monthly surplus?

We always put in what we thought we needed to save for retirement first. Age 24-30 (pre-kids) we built up a substantial all-equity taxable account and never added another dime to it. After that, we spent what was left over after college and retirement savings like drunken sailors. In reality we had...
by CnC
Fri May 11, 2018 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: FSRPX - Fidelity Select Retailing - dropped 90% today???
Replies: 11
Views: 4590

Re: FSRPX - Fidelity Select Retailing - dropped 90% today???

Lol I just logged in because I thought that fund sounded familiar. Fidelity did give me this popup the second I logged in. One or more of the Fidelity mutual funds in your account(s) reflect a 10-for-1 share split. The number of shares you own has multiplied by 10, with a proportionate decrease in t...
by CnC
Fri May 11, 2018 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: How close do you cut your monthly surplus?
Replies: 22
Views: 3317

Re: How close do you cut your monthly surplus?

Also just for round numbers we are 40k ef 260k cd that was meant for a land purchase that fell through ±70k taxable and 210k tax advantaged. + Pension and other defined benefits. Like I said this is only me second year actually taking this stuff seriously and I'm trying to make up for our late start.
by CnC
Fri May 11, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: How close do you cut your monthly surplus?
Replies: 22
Views: 3317

Re: How close do you cut your monthly surplus?

I am not sure from what you say what the mental hurdle is. I see one sentence that essentially seems to be concerned that you are over-saving and spending too little and a last sentence that seems to wonder how people can spend so much. Again, I would just sharpen the pencil and see what the cash i...
by CnC
Fri May 11, 2018 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: How close do you cut your monthly surplus?
Replies: 22
Views: 3317

Re: How close do you cut your monthly surplus?

Households differ, but outside an actual emergency fund it does not seem to me crazy to have a few tens of thousands of dollars in taxable savings aside from maxing tax deferred investing. But magnitudes are relative. A person earning $50K, with $100K in retirement savings probably does not have $2...
by CnC
Fri May 11, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: New Job - Use High Fee 401k With Match or Other?
Replies: 31
Views: 1554

Re: New Job - Use High Fee 401k With Match or Other?

Be very careful: Dave's advice about backdoor Roths is confusing at best, and may be totally wrong and leave you with a tax mess at worst. He ignores that having Traditional IRA balances complicates the conversion and tax calculation (see "caution" section in the wiki https://www.bogleheads.org/wik...
by CnC
Fri May 11, 2018 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: How close do you cut your monthly surplus?
Replies: 22
Views: 3317

How close do you cut your monthly surplus?

Going into our second year of serious saving and investing and I keep bumping into a mental block. 32 with a 31 DW How much is enough surplus each month? How much is too little? We have maxed out our pretax 401k/457 contributions our Roth IRA for the year my pension has always been deducted and I ha...
by CnC
Fri May 11, 2018 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: What would you do to lower our oversized emergency fund?
Replies: 35
Views: 3778

Re: What would you do to lower our oversized emergency fund?

100% option 3. I did that to my wife and she wasn't happy but it was for the good of the family. We had been spending 50% of what we make and just plunking thr rest into the checking and buying CD's when it got too high. Luckily she got on board when I got excited about it. Now I'm very mean to her ...
by CnC
Fri May 11, 2018 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: New Job - Use High Fee 401k With Match or Other?
Replies: 31
Views: 1554

Re: New Job - Use High Fee 401k With Match or Other?

This is a tough one. .75% fee sure suck it up and put your money there no problem. But +2% total fee is much harder to stomach. My gut reaction is to get the match and the fund yours and IRA's. You can fund traditional IRA's with non tax deducted money and then roll that money into a Roth IRA. It's ...
by CnC
Fri May 11, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Paying Roth conversion taxes with IRA funds
Replies: 7
Views: 801

Re: Paying Roth conversion taxes with IRA funds

You should always pay for Roth conversions with non tax deferred money, it is always to your advantage to have 10,000 in Roth and 7500 in your checking account rather than 7500 in Roth and 10,000 in your checking. Unless of course you don't have money laying around to pay the taxes taxes. If you don...
by CnC
Thu May 10, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 6580

Re: How do you quantify the risk differential between 85/15 and 70/30?

I wouldn't assume that stocks will beat bonds or the next 10 years or even 20. Didn't we just recently finish a 30year period where bonds beat stocks ? No we most certainly didn't. https://www.bogleheads.org/forum/viewtopic.php?t=88293#p1268227 That's handing out false information. It is just the s...
by CnC
Thu May 10, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 6580

Re: How do you quantify the risk differential between 85/15 and 70/30?

I wouldn't assume that stocks will beat bonds or the next 10 years or even 20. Didn't we just recently finish a 30year period where bonds beat stocks ? No we most certainly didn't. Stocks returned an annual return of 9.678% over the last 30 years. Please show me where bonds have averaged +9% over t...
by CnC
Thu May 10, 2018 8:30 am
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 6580

Re: How do you quantify the risk differential between 85/15 and 70/30?

As a quantitative matter, how much difference would it really make if I were 70/30 instead of 85/15? This question refers to the accumulation stage, not the withdrawal stage. Conceptually 85/15 carries more risk. But how do you calculate the extent of the risk and potential reward, quantitatively, ...
by CnC
Thu May 10, 2018 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Annuity value vs lump sum?
Replies: 4
Views: 532

Re: Annuity value vs lump sum?

So, one person said this seems to be a good deal assume that the funding looks solid at retirement.
by CnC
Wed May 09, 2018 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity value vs lump sum?
Replies: 4
Views: 532

Re: Annuity value vs lump sum?

Sounds like a great deal. I got about 5-6k less a year at https://www.immediateannuities.com, and with a COLA would receive much less each year. Is this plan sustainable? Is the company going to be around for another 50 years to support the plan? I'm guessing they're not fully funding the pension a...
by CnC
Wed May 09, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity value vs lump sum?
Replies: 4
Views: 532

Annuity value vs lump sum?

I have looked around but I have not found a comparable annuity to one offered by my employer. I am still many years away from retirement so no decisions need to be made for a while and the future is always subject to change. But my employer has a "Voluntary additional contribution" available in addi...
by CnC
Wed May 09, 2018 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Question on safety of ETFs
Replies: 32
Views: 2490

Re: Question on safety of ETFs

Now this borders on tinfoil hat territory but someone correct me.if I'm wrong. Mutual funds actually own the stock that they sell an index of meaning my sp500 fund can not lose any more value than the sp500 actually does because every share of a mutual fund is backed by a sliver of a share of the sp...
by CnC
Wed May 09, 2018 2:36 pm
Forum: Investing - Help with Personal Investments
Topic: Bad(?) advice from employer retirement advisor [on per-year contribution limits]
Replies: 29
Views: 2378

Re: Bad(?) advice from employer retirement advisor [on per-year contribution limits]

Yes you are well in the clear. There is no reason you can not continue to contribute as you have been.
by CnC
Wed May 09, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Pension. Lump sum or monthly payments.
Replies: 10
Views: 1140

Re: Pension. Lump sum or monthly payments.

Pension all the way.


Many people on here caution against retiring and withdrawing 4% or more a year to make it through retirement.


This gives a far superior withdrawal and much less headaches for someone not particularly good with money.
by CnC
Wed May 09, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Bad(?) advice from employer retirement advisor [on per-year contribution limits]
Replies: 29
Views: 2378

Re: Bad(?) advice from employer retirement advisor [on per-year contribution limits]

Right on, thank you everyone. I appreciate everybody for helping to clear that up. I'm relieved to hear that my intuition was correct and that I won't be setting myself up for tax problems with my current strategy. I chatted with a few of my closer coworkers and they see red flags from this advisor...
by CnC
Wed May 09, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Breaking Up and Staying On Good Terms with an Advisor
Replies: 42
Views: 5299

Re: Breaking Up and Staying On Good Terms with an Advisor

"Can we still be friends?" I'm getting closer to breaking up with my Ameriprise advisor. I want to stay on good terms with him, because he is my parents' advisor. I'm not involved in their finances and may never be. But it's possible. It's also emotional. He has been my advisor since I was in high ...
by CnC
Tue May 08, 2018 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Living off Dividends of Vanguard Total Stock
Replies: 49
Views: 7379

Re: Living off Dividends of Vanguard Total Stock

I think some responses are grabbing onto the dividend aspect and overlooking that living off total stock dividends implies a 2% withdrawal rate. At a 2% withdrawal rate, Firecalc gives a 100% success rate for 30 years for everything from 100% equities to 100% five year treasuries. (Standard disclai...
by CnC
Tue May 08, 2018 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1332

Re: Will a Roth 401k give you more money in retirement?

I have been thinking about Roth's traditional pretax contributions and I came to a conclusion that had not ever been mentioned that I could see. See Maxing out your retirement accounts and either of the two spreadsheets mentioned in that section. Thanks! This is EXACTLY what I was trying to figure ...
by CnC
Tue May 08, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1332

Re: Will a Roth 401k give you more money in retirement?

nolesrule wrote:
Tue May 08, 2018 11:39 am


You'd also have a lot of room to do Roth conversions in a lower tax bracket than you made the contributions if that was the case.
Is it better to pay nothing on the first 77k of long term capital gains on pay lower taxes on Roth conversions?

The $0 taxes on 77k seems very attractive to me.
by CnC
Tue May 08, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1332

Re: Will a Roth 401k give you more money in retirement?

Your capital gains rate is incorrect, and you are making the assumption that all traditional withdrawals will be withdrawn entirely at the marginal tax rate. Additionally there may be opportunities to reduce taxes, such as Roth conversion in lower income years, or relocating to a lower tax state in...
by CnC
Tue May 08, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1332

Re: Will a Roth 401k give you more money in retirement?

If you have $100 to invest and you're taxed 20% now and in the future, and the investments grow 10%, you end up with these numbers. Traditional Gross: $100 -Taxes (20%): $20 = $80 to invest After 10% growth, you have $88. Roth Gross: $100 After 10% growth, you have $110 - Taxes (20%): $22 = $110 - ...
by CnC
Tue May 08, 2018 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1332

Re: Will a Roth 401k give you more money in retirement?

But wouldn't the taxable account dividends be taxed at the capital gains rate of 15%, not at the income tax rate of 25%? The thing about future tax rates is that they are unknowable. We know what todays tax rates are, but can't know what they will be next year, let alone 30 years from now. Therefor...
by CnC
Tue May 08, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1332

Will a Roth 401k give you more money in retirement?

I have been thinking about Roth's traditional pretax contributions and I came to a conclusion that had not ever been mentioned that I could see. I may be missing something but here goes. Feel free to correct me where I have some flaws. I am not finance expert just a guy thinking about getting to ret...
by CnC
Mon May 07, 2018 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Concerns about RMD for roth vs tIRA contribution
Replies: 37
Views: 2190

Re: Concerns about RMD for roth vs tIRA contribution

It's difficult to offer anything other than general observations, without knowing more about your situation. RMDs can be a big issue if you'll have substantial other income in retirement. If you will primarily be surviving on your portfolio, it will likely be spent down by the time you reach age 70...
by CnC
Mon May 07, 2018 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Fixing An Advisor's Suggested Portfolio
Replies: 4
Views: 754

Re: Fixing An Advisor's Suggested Portfolio

My first take is that you are being extremely conservative in your positions. You don't need "vanguard funds" they are good but any low cost index will perform the same. Honestly this cfp does not appear to know what he was doing. First he put you into funds for a 67 year old retiree. Second, those ...
by CnC
Mon May 07, 2018 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Concerns about RMD for roth vs tIRA contribution
Replies: 37
Views: 2190

Re: Concerns about RMD for roth vs tIRA contribution

I can't tell you what you 'should' do but I can tell you our plans. We are putting: 50% of our savings into pretax 15% of our savings into Roth 35% of our savings into after tax I don't know what the future will hold but with that breakdown we feel like we are getting a good tax break now and will h...
by CnC
Tue May 01, 2018 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: All my eggs in one basket?
Replies: 26
Views: 13083

Re: All my eggs in one basket?

I personally have diversified into the precious metals market lead, copper, brass and dirt incase all my mutual funds go broke.
by CnC
Tue May 01, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 16840

Re: How do you know when you have "won the game"?

Well it's like this. Never grab a hot pan out of a 400 degree oven unless you like to burn yourself. I'm sure there is some odd duck out there who enjoys 3rd degree burns. But the oddities aside I would NEVER suggest it. Was that enough to satisfy your curiosity? No. It seems very myopic to presume...
by CnC
Tue May 01, 2018 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 16840

Re: How do you know when you have "won the game"?

I would NEVER suggest going no risk. Unless you had no desire to leave any kind of legacy for future generations. What does it even mean to say " NEVER " and then to start the very next sentence with "(u)nless"? :annoyed Well it's like this. Never grab a hot pan out of a 400 degree oven unless you ...
by CnC
Tue May 01, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Max out our 457 or 401k
Replies: 4
Views: 656

Re: Max out our 457 or 401k

Same situation unfortunately my advice is to max both. :/ The advantage of the 457 only counts if you are going to retire early and plan to stay in the same job until retirement. We maxed my wife's 401k first then maxed our Roth IRA's (contributions are not taxed when withdrawn) then maxed mine. We ...
by CnC
Tue May 01, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 16840

Re: How do you know when you have "won the game"?

Also when I have confidence in the "when" I won the game, what is the definition of stop playing? Retirement, slowing down at work, exiting the stock market or go low/no risk (ex. CD's), sell the big house and downgrade, sell the business/commercial real estate? Does one retire if they get satisfac...
by CnC
Tue May 01, 2018 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Making the decision to do a Roth Conversion
Replies: 46
Views: 3955

Re: Making the decision to do a Roth Conversion

If you are earning 8% you could convert $240,000 and just be treading water is it really realistic to convert $500,000 a year? How does that work or at that point you just accept that you have lots of money and you will have to pay a big surcharge for social security and Medicare? That may fall und...
by CnC
Fri Apr 27, 2018 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Making the decision to do a Roth Conversion
Replies: 46
Views: 3955

Re: Making the decision to do a Roth Conversion

If you are earning 8% you could convert $240,000 and just be treading water is it really realistic to convert $500,000 a year? How does that work or at that point you just accept that you have lots of money and you will have to pay a big surcharge for social security and Medicare? That may fall und...