Search found 387 matches

by kenbrumy
Sun Aug 22, 2010 12:37 pm
Forum: Investing - Theory, News & General
Topic: Why I took early social security
Replies: 44
Views: 5537

I found it strange that none of those interviewed mentioned health care costs as a factor for taking SS early. Between age 62 and 65 when medicare kicks in health insurance can be very expensive. In case of job loss, COBRA can be picked up for 18 months maximum. I believe the government will pick u...
by kenbrumy
Sat Aug 21, 2010 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Newly retired, need help with portfolio & allocation
Replies: 22
Views: 2362

You have to balance out the risk of losing principle against the risk of falling behind to inflation. Long term equities perform better than bonds and are intended to provide an inflation hedge. Bonds/CDs are to provide income and stability. At 59 you need a reasonable amount of equities. We're clos...
by kenbrumy
Fri Aug 20, 2010 6:09 pm
Forum: Personal Consumer Issues
Topic: Another NYT article: What is it about 20-somethings?
Replies: 12
Views: 1438

I'm almost 60. If my parents were still alive and were sending me money, I'd take it.

It's not that kids "don't grow up as fast." Parents don't throw them out of the nest when they should.
by kenbrumy
Fri Aug 20, 2010 6:06 pm
Forum: Investing - Theory, News & General
Topic: NY Times: "Vanguard is sexy"
Replies: 9
Views: 2509

Living below your means increases your odds of becoming independently wealthy. Which certainly is an attractive quality in a potential mate. :D I observed back in my single days that spending like there's no tomorrow attracts the wrong sort of wife candidates but a great selection of one night stan...
by kenbrumy
Sun Aug 15, 2010 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance Question
Replies: 7
Views: 1410

Five months isn't nearly long enough of an emergency fund with a non-working (outside the home) spouse. Put it all in the emergency fund and build it up to at least a year ASAP. You'll understand if you lose your job and look at losing everything in 3 months without a job. At 41 you're starting to b...
by kenbrumy
Sun Aug 15, 2010 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Permanent Insurance - for Retirement Savings?
Replies: 20
Views: 3029

Many years ago when I was just starting out, I fell for the whole life sales pitch based on the high rate of return promised by the agent. About 4 years went by (give or take) and I checked the cash value of the policy versus the agent's original projection. Not surprising to most Bogleheads, the am...
by kenbrumy
Sat Aug 14, 2010 8:55 pm
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 6 of 6
Replies: 19
Views: 3460

sometimesinvestor wrote:Namely when is this an approriate investment and for whom.
For equity indexed annuities the answers are never and no one.
by kenbrumy
Fri Aug 13, 2010 6:09 pm
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 6 of 6
Replies: 19
Views: 3460

Congratulations. You managed to get all six articles out without being assassinated. Were there any attempts? BTW - my wife (and I by acceptance) just bought an annuity today. It was for a pre-paid funeral for my father-in-law who is in hospice. Even though the expected need is this year they still ...
by kenbrumy
Mon Aug 09, 2010 7:10 pm
Forum: Personal Consumer Issues
Topic: Long Term Care policy... is it a good thing?
Replies: 16
Views: 2883

Like all insurance you are statistically better off if you can afford to self-insure. My parents had LTC insurance and paid for years on the policy. Neither used a day of it. My in-laws didn't have LTC insurance and one spent 3 years and another (so far) 4 but that's probably coming to an end soon. ...
by kenbrumy
Sun Aug 08, 2010 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: new so cut me some slack!!! [settlement payout options]
Replies: 13
Views: 2697

makinminey, You need to educate yourself quickly. Don't listen to anyone that makes money off of your investment choices. Search the forum for the recommended reading list. Feel free to post questions about what your thoughts are about possible investments. Doing nothing for six months or more is pr...
by kenbrumy
Sun Aug 08, 2010 6:27 pm
Forum: Investing - Help with Personal Investments
Topic: new so cut me some slack!!! [settlement payout options]
Replies: 13
Views: 2697

Ron wrote:
nisiprius wrote:...they are not your friend.
Well, not quite; they certainly are your friend, but you are paying them to be one :lol: ...

- Ron
I've heard there are women like this. :lol:
by kenbrumy
Sun Aug 08, 2010 6:26 pm
Forum: Investing - Help with Personal Investments
Topic: new so cut me some slack!!! [settlement payout options]
Replies: 13
Views: 2697

Nisiprius gave you some very good advice. One thing I would add: when "friends" and even close family ask you about your settlement, tell them that everything you received is in a structured settlement that just "meets my expenses each month". That way you are already off the hook when someone (and...
by kenbrumy
Sun Aug 08, 2010 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Taylor: Request for immediate annuity advice
Replies: 21
Views: 4035

May I ask you to cite your source that "buyers remorse" is common? I quick Google search for "satisfaction survey among fixed annuitants" produced this survey: http://www.tiaa-crefinstitute.org/pdf/research/trends_issues/ti_definedcontribution0410.pdf Satisfaction levels among annuitized retirees a...
by kenbrumy
Sun Aug 08, 2010 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Taylor: Request for immediate annuity advice
Replies: 21
Views: 4035

I think it was bob90245 who called my attention to a very sensible article entitled--yep, it was him, Google found it on his website-- Tools and Pools. Very good. I think you'd appreciate it. It was interesting. It's similar to what I've come up with but with one extra pool. He also talked about bu...
by kenbrumy
Sun Aug 08, 2010 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Taylor: Request for immediate annuity advice
Replies: 21
Views: 4035

Knowing the way I handle such financial decisions with so many competing factors to consider I'll probably be dead by the time I decide. That's my usual recommendation. :D Laddering purchases if you decide to buy is also the way to do it. Once you sign on the dotted line and give them the check you...
by kenbrumy
Sun Aug 08, 2010 10:40 am
Forum: Personal Consumer Issues
Topic: Advice on planning a Hawaiian destination wedding?
Replies: 25
Views: 3983

People who plan their weddings as if they were children's birthday parties are not mature enough to get married. I find it highly inconsiderate that you are essentially taking over family and friend's vacation plans and thousands of dollars in costs to go along with your dream wedding photo op. I w...
by kenbrumy
Sun Aug 08, 2010 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Taylor: Request for immediate annuity advice
Replies: 21
Views: 4035

If you say so. Let's just say I did not make a conscious effort to target my AA depending on the SPIA (or any other guaranteed income source). - Ron You must not be a techno nerd like me and bob90245. BTW, you should go to Bob's website if you haven't. It has a lot of interesting articles. I've sli...
by kenbrumy
Sun Aug 08, 2010 7:21 am
Forum: Personal Consumer Issues
Topic: Advice on planning a Hawaiian destination wedding?
Replies: 25
Views: 3983

My kids have been invited and/or involved in a couple of destination weddings. It always created a bit of friction and grumblings. It may be the "big day" to you but you are effectively forcing family and friends to spend major dollars and probably very limited vacation days to go there. See how exc...
by kenbrumy
Sat Aug 07, 2010 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Taylor: Request for immediate annuity advice
Replies: 21
Views: 4035

I look at the SPIA in the same manner that I look at SS, pension, or any other retirement income source. It just reduces the amount of required income in retirement from non-guaranteed sources (such as your portfolio). I/we did not forumulate our target AA based upon the SPIA or any other current/f...
by kenbrumy
Sat Aug 07, 2010 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Taylor: Request for immediate annuity advice
Replies: 21
Views: 4035

Before you actually give money to an insurance company for a SPIA, I suggest you consider funding a sinking fund investment to pay you your social security equivalent until age 70. Deferring SS to age 70 is the best buy available for acquiring an inflation adjusted, US govt guaranteed annuity. The c...
by kenbrumy
Mon Aug 02, 2010 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Is this just more fancy marketing for a whole life policy?
Replies: 14
Views: 2305

"Friends," IMHO are more likely to sell you things you don't really want or need. There is no reason to buy this insurance product. If you are planning to have kids in the near future, you might want to start shopping for term. Since "the bun isn't in the oven," it's very premature to actually buy a...
by kenbrumy
Sat Jul 31, 2010 4:45 pm
Forum: Investing - Theory, News & General
Topic: Why a 4% withdrawal rate is still okay
Replies: 29
Views: 4020

There's always the Smith & Wesson plan. If it looks like you'll end up using all your assets, make sure your last asset is your S&W and a bullet. I've seen people focus on the 4% rule. Quite honestly, getting your "number" to the magical 25 times expenses is planning for failure. In their effort to ...
by kenbrumy
Fri Jul 30, 2010 4:48 pm
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 5 of 6
Replies: 24
Views: 3311

I did not see any mention in the article of the "life with installemnt refund" option. In this option (which I purchased in my SPIA), the insurance company promises to refund an amount equal to the unpaid balance of the original purchase amount to an annuitant's heirs in case he/she dies before the...
by kenbrumy
Fri Jul 30, 2010 3:47 pm
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 5 of 6
Replies: 24
Views: 3311

Mel, one small request. Ask Forbes to unlink my name, because the Dan Smith it links to is not me. Neither am I the Daniel Smith who plays the bassoon , nor yet the Dan Smith who manufactures candy in Pennsylvania . There are many Dan Smiths and most of them are not me. You've always struck me as a...
by kenbrumy
Tue Jul 27, 2010 4:56 am
Forum: Investing - Help with Personal Investments
Topic: NY Life Annuity Death Benefit Payment
Replies: 3
Views: 793

I'm sorry about your situation but I need more details. Unfortunately, you need to read the annuity contract. Also, you can ask both sales people what happens if your mother takes the money in cash. Look for specifics and not "she'll have to pay taxes" which is a classic scare tactic. I'm afraid the...
by kenbrumy
Sun Jul 25, 2010 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees advise on Annuities as part of retirement portfolio
Replies: 81
Views: 12335

Don't forget, even if a term was not specified and it was only for joint lifetime, while they are alive they (assuming one/both live that long) will still be getting both SS and SPIA income. I don't think you read the cases I used very closely. The first option was to pay themselves cash until SS k...
by kenbrumy
Sun Jul 25, 2010 7:54 am
Forum: Investing - Help with Personal Investments
Topic: Retirees advise on Annuities as part of retirement portfolio
Replies: 81
Views: 12335

Re: equity indexed annuities

I went to a free luncheon whereby financial firm offered these annuities and explained them. It sounded to good to be true, along with all of their examples. I decided not to purchase them because of the thought that if it sounds to good you best not to purchase. Maybe I made a mistake and we shoul...
by kenbrumy
Sun Jul 25, 2010 7:48 am
Forum: Investing - Help with Personal Investments
Topic: Retirees advise on Annuities as part of retirement portfolio
Replies: 81
Views: 12335

In this scenario, don't forget that your SPIA payments continue (regardless of their true value due to any inflation) after you start drawing your SS. You have to add that monthly payment to what you anticipate your monthly SS income will be. Assuming you purchase an SPIA that covers both you/your ...
by kenbrumy
Sat Jul 24, 2010 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees advise on Annuities as part of retirement portfolio
Replies: 81
Views: 12335

There are numerous articles about deferring social security and how it's the most cost effective way to increase your retirement income rather than purchase a commercial annuity. I meant to say annuity because you're not buying anything. You're getting a much better increase in your SS by spending d...
by kenbrumy
Sat Jul 24, 2010 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Retirees advise on Annuities as part of retirement portfolio
Replies: 81
Views: 12335

Re: Retirees advise on Annuities as part of retirement portf

I was a little concerned that my advisor was just trying to sell me something for the good of Fidelity. Actually just before I stopped working the market dropped 1000 points in one day and has been up and down since. That opened my eyes to the real world of the stock market and it's impact on "reti...
by kenbrumy
Sat Jul 24, 2010 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Retirees advise on Annuities as part of retirement portfolio
Replies: 81
Views: 12335

I'll start off by recommending you buy an annuity and it's fully backed by the US government. Take that $200,000 the Fidelity guy wants you to use and give yourself a $30,000 payout every year until you reach 70. This is just about the combined total of $32,900 you'd get with taking SS now and buyin...
by kenbrumy
Tue Jul 20, 2010 6:17 pm
Forum: Investing - Theory, News & General
Topic: If you need an advisor, read this:
Replies: 81
Views: 8237

Stupid question time - why does anyone need an advisor. Don't they just add cost and produce zero value? The majority of investors are fully incapable of managing their own investment portfolio. More specifically, they are unable to develop a suitable target allocation, and even if they can, they a...
by kenbrumy
Sat Jul 17, 2010 5:01 pm
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 4 of 6
Replies: 29
Views: 3496

At best, I'm a thorn in the side of annuity pushing trolls on this forum and have managed to save a few people from really crappy insurance products. Oops! Then I won't talk about my SPIA :lol: ... - Ron If you're selling, thank you. However, I think you bought one; and if you are who I remember, i...
by kenbrumy
Sat Jul 17, 2010 2:11 pm
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 4 of 6
Replies: 29
Views: 3496

I didn't recall reading anything about MYGA annuities on any of these articles. Were they covered or addressed? If so, anyone have the link? They haven't been covered yet. They are longer term commitments with very limited liquidity. They are definitely not like CDs except to the people making the ...
by kenbrumy
Sat Jul 17, 2010 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Answering the "Do I Have Enough to Retire" questio
Replies: 45
Views: 7953

Re: Answering the "Do I Have Enough to Retire" que

Exceeding the state guarantee limit on annuities seems too risky. You'd be at risk for the credit of a single insurance company for the rest of your life. Unfortunately, there are only a handful of companies issuing inflation indexed annuities. Not to hijack this to an annuity thread but the "state...
by kenbrumy
Sat Jul 17, 2010 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Darn, they found me [junk mail]
Replies: 23
Views: 3271

The problem with the opt out web site is that it doesn't stop companies that "have a business relationship with you." That means any credit card affiliated with any frequent flier program you're in, the bank you use, etc. I like #2. I've periodically gotten pissed off at the number of solicitations ...
by kenbrumy
Fri Jul 16, 2010 3:01 pm
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 4 of 6
Replies: 29
Views: 3496

Nice summary on why not to buy a Fixed Deferred Annuity. Any assassination attempts yet? Unfortunately, most buyers are like my father-in-law that bought two about age 80 from "friends." When we took over his finances at around 85, he was adamant that they were yielding 5%. That was the one year tea...
by kenbrumy
Thu Jul 15, 2010 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Answering the "Do I Have Enough to Retire" questio
Replies: 45
Views: 7953

Re: The medical care costs are my biggest worry.

I'm not sure the new health plan will address these issues. You may be able to get insurance but at what cost? I wish I knew how to plan for this. No denial of coverage for pre-existing conditions, state insurance exchanges and a variety of cost savings ideas should help. I certainly don't think th...
by kenbrumy
Sat Jul 10, 2010 7:44 am
Forum: Personal Finance (Not Investing)
Topic: European countries raising their retirement ages
Replies: 16
Views: 2184

The US needs to make similar moves for the sake of future solvency of Social Security. Social Security is petty cash compared to the vast unfunded government pensions (federal, state and local). Social security can be "fixed" by a slight tweak in retirement age for the under 50 or a minor increase ...
by kenbrumy
Sat Jul 10, 2010 7:09 am
Forum: Investing - Help with Personal Investments
Topic: Retirement/Investment advice (apologies, long post)
Replies: 17
Views: 2289

It's hard to figure out your situation. Your post is both extremely detailed and extremely lacking in relevant information. You may want to repost if you'd like advice better suited to your total situation. Search for the suggested format. As for your questions, I didn't see anything that would make...
by kenbrumy
Fri Jul 09, 2010 3:37 pm
Forum: Investing - Theory, News & General
Topic: Father-in-law's Long-Term Cash Flow Deficit
Replies: 7
Views: 1626

I'd suggest laddering into 5 year CDs. As a CD matures, keep what you think you'll need for the next year plus a little emergency cash. With any leftovers, buy a CD 5 years out. My in-laws have been in various stages of care for the last 5 years. My mother-in-law has passed away but my 90 YO father-...
by kenbrumy
Wed Jul 07, 2010 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: DFA fund approved investment advisors
Replies: 18
Views: 4631

DFA diversification and it's academic approach to buy & hold investing is a key selling point for these advisors. You can only buy DFA through these approved advisors. DFA does seem to do a little better than a similar vanguard portfolio but how much ramains in question especially when you add in t...
by kenbrumy
Sun Jul 04, 2010 4:07 pm
Forum: Personal Consumer Issues
Topic: Thomas Jefferson and John Adams
Replies: 20
Views: 4422

Burr was dropped from the ticket in the next election after killing Hamilton in a duel. Burr was also tried for treason, but acquitted. There were no "tickets" at this point in US history. Burr fell so far out of favor that he was not a viable candidate for president and received few, if any, elect...
by kenbrumy
Sun Jul 04, 2010 4:01 pm
Forum: Investing - Theory, News & General
Topic: Pension Paradox (or, Is there an Actuary in the House?)
Replies: 7
Views: 1788

You can assume your pension will be made far less generous as time goes on. The private sector will have to come to grips with the massive, unfunded pension liability most plans have built up.
by kenbrumy
Sun Jul 04, 2010 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: What Should My Parents Do?
Replies: 9
Views: 2396

There's two questions here. The first is what you asked. (What would you do in their situation?) The overwhelming majority of bogleheads would have been miles away from Edward Jones long, long, long ago. The second (but unasked) is "what should you do?" You are attempting to "parent" your parents. Y...
by kenbrumy
Sat Jul 03, 2010 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: BMY yields 6%
Replies: 13
Views: 2206

Sorry, but I have to agree with Ken on this one. To randomly pick a dividend-oriented ETF, DHS has a distribution yield of 4.5%, a reasonable expense ratio (0.38%), and less than 10% of its holdings in any single company. It seems like a pretty inexpensive way to hedge company specific risk, if one...
by kenbrumy
Sat Jul 03, 2010 10:52 am
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 3 of 6
Replies: 13
Views: 2299

And, I'd be willing to bet that the vast majority of decision-makers don't have a clue about investing, and yet they're charged with deciding on a plan that will affect the lives of so many. It's really sad and something needs to be done about it. It's a shame everyone can't just sign up for the TS...
by kenbrumy
Sat Jul 03, 2010 10:43 am
Forum: Investing - Help with Personal Investments
Topic: BMY yields 6%
Replies: 13
Views: 2206

---------------- This is crazy. The reason a boglehead would stay out of individual stocks is because of company specific risk. . . but . . There isn't really a mass exodus from "smart money" selling BMY to lower prices so that the dividend is higher. According to Yahoo, there has been a net sellin...
by kenbrumy
Sat Jul 03, 2010 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Neighbor told me he's thinking of walking away
Replies: 42
Views: 7175

Me thinks that DiscoBunny is in the real estate business. The basic realtor mantra is that it's always a great time to buy a house. We're going through a total upheaval of the USA concept of home ownership. Pre-WWII you bought a house because you needed a place to live and it was cheaper than rentin...
by kenbrumy
Sat Jul 03, 2010 8:58 am
Forum: Investing - Help with Personal Investments
Topic: BMY yields 6%
Replies: 13
Views: 2206

Holding individual stocks is always a losing game even for dividends. An individual stock even if it pays a dividend is subject to the same risk factors for such a focused investment. Bank of America, Fannie, Freddie, Citi, BP and many others used to pay a good dividend. Right now they are "gone wit...