Search found 548 matches

by Independent
Thu Apr 30, 2015 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: How much Life Insurance
Replies: 22
Views: 2338

Re: How much Life Insurance

What happens to my 401k and roth IRA when I die. Does it get cashed out and go to the wife or can she roll it over into her 401k and Roth IRA She has options that allow her to defer the taxes. They are too complex top summarize here, just Google "inherited 401k or Roth" and you'll find multiple sou...
by Independent
Thu Apr 30, 2015 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Finding the actuarial value of delaying SS benefits
Replies: 54
Views: 12072

Re: Finding the actuarial value of delaying SS benefits

The big issue of course is assumptions.

There are various mortality tables and investment returns that you could use.

They may be documented in the worksheet, but could you list them here?
by Independent
Wed Apr 29, 2015 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: How much Life Insurance
Replies: 22
Views: 2338

Re: How much Life Insurance

Yes my wife and son would get ~4k total per mth in SS benefits and my wife makes 100k/yr. This gives 148k. Is this wrong? Thanks! I'm guessing that the $4k is the sum of two benefits. If the following is correct, she would lose her entire benefit if she earned $100k. How working can reduce your ben...
by Independent
Wed Apr 29, 2015 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: How much Life Insurance
Replies: 22
Views: 2338

Re: How much Life Insurance

Woody999 wrote:"You can get a quick and dirty FIT estimate here: https://turbotax.intuit.com/tax-tools/c ... taxcaster/"

For this you are talking about her average federal tax rate after I die, correct?
Not quite. I'm talking about the dollar amount of annual FIT, based on the incomes you've assumed.
by Independent
Wed Apr 29, 2015 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Wait for Social Security or not?
Replies: 13
Views: 2065

Re: Wait for Social Security or not?

Many debates on when to take SS. Since she is single, some of the complexities go away. There's a recent poll on this subject on this forum. IIRC, about 50% of the respondents said they'd wait until 70. Very few would start at 62. The big issues are longevity and investment returns. If she expects t...
by Independent
Wed Apr 29, 2015 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: How much Life Insurance
Replies: 22
Views: 2338

Re: How much Life Insurance

#1 I'd include FIT and FICA taxes in line 1. . 1) How do I calculate the FIT and FICA you mention? 2) Thanks for the link to the tables. That will be helpful! 3) That makes sense...thanks! 4) Ok. Thanks! FICA is 7.65% of salary up to $118,000, and 1.45% above that. No FICA on SS benefits. You can g...
by Independent
Wed Apr 29, 2015 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: How much Life Insurance
Replies: 22
Views: 2338

Re: How much Life Insurance

#1 I'd include FIT and FICA taxes in line 1. #2 The Consumer Expenditure Survey shows you what other people spend. It provides a nice checklist so you don't forget anything. Try one of the 2011 tables here: http://www.bls.gov/cex/csxstnd.htm#2011 #3 I'd say that I want to cover my survivors' needs, ...
by Independent
Sun Apr 26, 2015 7:34 am
Forum: Personal Finance (Not Investing)
Topic: SAHP, Social Security, and Life Insurance and taxes
Replies: 6
Views: 1090

Re: SAHP, Social Security, and Life Insurance and taxes

I'd agree that SS significantly reduces the need for life insurance on you. You're thinking that you'll be living on $80k of pre-tax income (probably plus an employer subsidized health insurance plan), and your wife would have $42k or $48k of non-taxable SS benefits. Since you'd be gone, your food, ...
by Independent
Sun Apr 26, 2015 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Anyone Manually Manage Quicken?
Replies: 46
Views: 6164

Re: Anyone Manually Manage Quicken?

I only use Quicken for spending accounts - checking, credit card, and cash.

I manually enter everything. I like to see the detail.

If I were starting over, I might just use a spreadsheet.
by Independent
Sat Apr 25, 2015 4:12 pm
Forum: Personal Consumer Issues
Topic: Drive a local car, rent for trips ?
Replies: 40
Views: 5213

Re: Drive a local car, rent for trips ?

We rented minivans a couple times when we had three kids at home. The vans worked great.

The biggest drawback was the time traveling to the rental car outlet, paperwork after we got there, then driving back home.

Cost was fine since we had "unlimited mileage" rates.
by Independent
Fri Apr 24, 2015 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Does your LTC carrier do this?
Replies: 6
Views: 1086

Re: Does your LTC carrier do this?

I worked for one "large well known" insurance company that wrote LTC insurance. They did not send an annual update giving the current daily benefit (or "pool of money"). The contract wording would have said to take the number on the declarations page and multiply by 1.05^n, or something like that. T...
by Independent
Wed Apr 22, 2015 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Poll: Work adjustment options
Replies: 25
Views: 3494

Re: Work adjustment options

For the TL;DR summary, current expenses are about $29k per year not including income tax. My job provides a pension without COLA or health-care coverage, which if taken in early 2016 would be about $39k per year. And you will eventually get Social Security too. You didn't mention it but I would als...
by Independent
Tue Apr 21, 2015 9:41 am
Forum: Personal Finance (Not Investing)
Topic: What's your average monthly expense???
Replies: 85
Views: 15222

Re: What's your average monthly expense???

I assume these are not all retired people. Many don't seem to list health insurance as an expense and some seem very low at $100 month or so. Yes, $100/mo is lower than average. According to the Kaiser Family Foundation, the average employee share of "Employee plus one" group insurance coverage was...
by Independent
Mon Apr 20, 2015 10:00 am
Forum: Personal Finance (Not Investing)
Topic: SS COLA for 2016 not looking good
Replies: 13
Views: 2506

Re: SS COLA for 2016 not looking good

pshonore wrote: its not looking good. .
I don't know whether you own bonds or have a pension, but from my perspective, this is good news.

No SS COLA reflects low inflation. Since part of my retirement income comes from a non-COLA'd pension, I'm hoping for low inflation.
by Independent
Mon Apr 20, 2015 9:19 am
Forum: Personal Finance (Not Investing)
Topic: What's your average monthly expense???
Replies: 85
Views: 15222

Re: What's your average monthly expense???

I could add one more family to the list, but I think I could provide better information by showing the average for all American couples, with no children, and at least one earner. The first column is the US average for 2013. You look a little below average for the things you list. 160 Phone + Intern...
by Independent
Sun Apr 19, 2015 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Budgeting
Replies: 9
Views: 1865

Re: Retirement Budgeting

So much is changing, that some sort of bottom up seems like the right approach. One problem with bottom up is that you forget some categories (Dental, for example). This Wiki page has a number of checklists that might help.https://www.bogleheads.org/wiki/Budget_models_of_retirement_spending#Bottom-u...
by Independent
Sun Apr 19, 2015 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: 401k + retirement + bene + family
Replies: 4
Views: 764

Re: 401k + retirement + bene + family

Just curious.... After retirement, can you just keep your own 401k for as along as you want ? Of course you can't contribute anything - but guess you can roll over other 401k accts.. Again - just curious about the ins/outs of the 401k after retirement along with the bene issue. Yes, you can keep yo...
by Independent
Fri Apr 17, 2015 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Interesting article on improving LTC policies
Replies: 4
Views: 1012

Re: Interesting article on improving LTC policies

I agree that I'd love to buy a policy with a long elimination period and a long benefit period. When I was 16 my father told me to buy insurance for catastrophes, not for inconveniences. That's still my attitude. I can handle the more predictable stuff, I need insurance for the unpredictable. The pr...
by Independent
Fri Apr 17, 2015 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: [Financial] Tips for Post-College Lifestyle
Replies: 53
Views: 5406

Re: Tips for Post-College Lifestyle

IMO, retiring comfortably at 62 is about living modestly below your means and investing in low cost mutual funds.

Retiring at 30 is about super high income (and no kids).

I have some experience with the first, but no experience with the second.
by Independent
Wed Apr 15, 2015 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Review our current finances - What else we should do?
Replies: 17
Views: 2897

Re: Review our current finances - What else we should do?

Since "renters are easy to find", I'd consider raising the rent. That's "low hanging fruit" to me. I assume your "cash" savings aren't really in cash. Other people here can suggest tax efficient ways to invest that money. None of your expenses look out of line for "average" american families. I'm su...
by Independent
Tue Apr 14, 2015 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Which one to collect first, SS or EIA payment
Replies: 8
Views: 857

Re: Which one to collect first, SS or EIA payment

My fault, I look at the EIA document it is called LIBR for life time benifit rider, the percentage of money you get is using the income account value. If I turn the money to the insurance company, I will get a series of payment for life even the asset account value go down to zero, on this particul...
by Independent
Mon Apr 13, 2015 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Which one to collect first, SS or EIA payment
Replies: 8
Views: 857

Re: Which one to collect first, SS or EIA payment

Yes, SS is "gone when you die". But, most 62 year-old women will live for a couple more decades. Deferring SS for four will raise her annual income from $20,000 to maybe $26,000 (plus CPI increases) If she defers for four years to her FRA (full retirement age) she could then take a spousal benefit ...
by Independent
Mon Apr 13, 2015 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Which one to collect first, SS or EIA payment
Replies: 8
Views: 857

Re: Which one to collect first, SS or EIA payment

Our daughter already prove to us she is financial independent, she can survive the jungle out there. (no student loan, with some scholarship, we paid for the balance of her bachelor Math degree). Base on the CFA planing from Vanguard, we are fortune enough that will have money left even if we lived...
by Independent
Mon Apr 13, 2015 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Which one to collect first, SS or EIA payment
Replies: 8
Views: 857

Re: Which one to collect first, SS or EIA payment

Yes, SS is "gone when you die". But, most 62 year-old women will live for a couple more decades. Deferring SS for four years will raise her annual income from $20,000 to maybe $26,000 (plus CPI increases). It's hard to say which is "best" -- depends on other factors, some of which are unknowable. Yo...
by Independent
Sun Apr 12, 2015 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Need some help with SPIA choices
Replies: 6
Views: 1187

Re: Need some help with SPIA choices

Thanks for the replies. Her portfolio is around ~4.5M....maybe I should just convince her that she will likely never run out of money (she spends about 3% of the portfolio a year at age 57). Maybe a 40% bond allocation would help ease fears more; she currently only has 25% in bonds. Maybe just conv...
by Independent
Sun Apr 12, 2015 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Career and college advice for current HS students
Replies: 34
Views: 3833

Re: Career and college advice for current HS students

For very good math students who want to be in the business world -- I think actuary is still a possibility. Lots of people try to get in too late. There are a hand full of colleges with good programs, you want to start at one of those and focus on exams and "business useful" courses. I have an acqua...
by Independent
Sat Apr 11, 2015 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term care hybrid insurance - is this a good idea?
Replies: 15
Views: 2878

Re: Long-term care hybrid insurance - is this a good idea?

It's a more complex policy, and complexity always tends to favor the seller (think market-linked CDs). Why is insurance an exception to the Boglehead emphasis on simplicity? +1 I'd want to see lots of numbers and all the fine print. The article linked in the OP is typical sales talk - all pretty pi...
by Independent
Sat Apr 11, 2015 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Monthly fund withdrawals
Replies: 3
Views: 669

Re: Monthly fund withdrawals

Let's see if I've got the facts right. If your total assets are $1 million, you have $200,000 bonds in the Roth, and you have $200,000 bonds and $600,000 stocks in the Taxable. That makes 80/20 split between Taxable and Roth, and a 60/40 overall split between stocks and bonds. Presumably, you're hap...
by Independent
Fri Apr 10, 2015 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: How to know if I am saving enough?
Replies: 25
Views: 3822

Re: How to know if I am saving enough?

There's no way of knowing if you're saving "enough" unless you have some reason for saving. Why not just spend every dime? You seem to be living on 25% of your gross income, and can (after your loan is repaid) save 45% for some future spending. That's way more than most people save, but I don't know...
by Independent
Tue Apr 07, 2015 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for childrens' college
Replies: 121
Views: 13058

Re: Paying for childrens' college

We won’t be able to pay for our kid’s college. I just used the college calculator. It looks like we will need about 400K to send our 2 kids to college. They will be 18 in 15 years. We won’t be able to save that much for college in 15 years. ... We should be able to pay make payments for 10 years. B...
by Independent
Mon Apr 06, 2015 11:07 am
Forum: Personal Finance (Not Investing)
Topic: 20 year term life, 500k each or 1m each
Replies: 10
Views: 1974

Re: 20 year term life, 500k each or 1m each

We looked at the college expenses for our two kiddos and outstanding home and auto loans. Wanted a small nest egg after that was said and done so our kids could still have a good life traveling and such. The small monthly difference between the500 and 1M each makes me want go go ahead and move forw...
by Independent
Sat Apr 04, 2015 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Occasional big expenses after retirement
Replies: 32
Views: 3898

Re: Occasional big expenses after retirement

Bill M wrote: Some alternatives come to mind:
(1) just make a larger than normal withdrawal from investment accounts that year.
We use #1.

Unless I'm into market timing, there's no loss in just taking the money out when we spend it.
by Independent
Tue Mar 31, 2015 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Does excess $ matter if Retirement (15yrs from now) is set?
Replies: 30
Views: 4470

Re: Does excess $ matter if Retirement (15yrs from now) is s

"How much do you want to spend per year while you're working?" my monthly barebones expenses is $2500/month. so maybe $3k/month with entertainment. How much after you're retired? No idea "No idea" is a problem to me. But, I'll infer something -- It seems that you're saying the "excess" is about $50...
by Independent
Tue Mar 31, 2015 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Does excess $ matter if Retirement (15yrs from now) is set?
Replies: 30
Views: 4470

Re: Does excess $ matter if Retirement (15yrs from now) is s

You have 14 years of "barebones" expenses in IRA/Roth. If your pensions are not inflation adjusted, they won't amount to much 20 or 40 years from now. It looks like you have set yourself up for a "barebones" retirement. That's pretty good for someone who is only 44. The question regarding near term ...
by Independent
Sat Mar 28, 2015 10:37 am
Forum: Personal Finance (Not Investing)
Topic: JOWPYN - The Joy of Working Past Your Number
Replies: 55
Views: 10798

Re: JOWPYN - The Joy of Working Past Your Number

Yes, there is nothing wrong with working after you are Financially Independent.

Not only does it mean that every (after-tax) earned dollar is "extra money", it means that you can mentally say "I really don't need this job". Options make life much better.
by Independent
Sat Mar 28, 2015 10:32 am
Forum: Personal Finance (Not Investing)
Topic: I'm a single 38 yo female needing financial advice
Replies: 18
Views: 3707

Re: I'm a single 38 yo female needing financial advice

How do I become financially independent before retirement age one day? Also, do I invest in stock all of my 20K IRA contributions? The first step to financial independence is to Live Below Your Means today. That's more important than almost any investment decision. That's basic Bogle https://www.bo...
by Independent
Fri Mar 13, 2015 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Why not use inflation-adjusted SPIA?
Replies: 117
Views: 9268

Re: Why not use inflation-adjusted SPIA?

They can't "immunize" a CPI-indexed liability with a fixed rate asset. Regulators and management are going to ask what happens to your bottom line the next time we see double digit inflation. TIPS is a perfect expensive hedge for inflation. However, there are other, cheaper, adequate hedges out the...
by Independent
Fri Mar 13, 2015 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Defined-Benefit Retirement Plan
Replies: 11
Views: 1610

Re: Defined-Benefit Retirement Plan

It seems to be common knowledge that a defined benefit plan is the better option of the two, especially that employer makes the contribution. What is the equivalent annual payout of a Defined Benefit Plan for comparison sake? How does one even begin to compare the two though? That isn't "common kno...
by Independent
Thu Mar 12, 2015 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: When to cash in your chips?
Replies: 32
Views: 4994

Re: When to cash in your chips?

You're in very good shape. This comes down to choices between very attractive alternatives. It's just a matter of priorities. In our house, having someone home full time with infants was the priority for my wife. So that's what we did. We could live on just my salary, you can clearly live on your mu...
by Independent
Thu Mar 12, 2015 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Why not use inflation-adjusted SPIA?
Replies: 117
Views: 9268

Re: Why not use inflation-adjusted SPIA?

Can someone point me to the evidence that insurance companies use TIPS for SPIAs to any large extent? If you were building an insurance portfolio this is not the way that you would do it. You would build your actuarial models. You would use TIPS for the long term real required rate of return for th...
by Independent
Thu Mar 12, 2015 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: 31 Year Old Seeking Financial Guidance
Replies: 46
Views: 6485

Re: 31 Year Old Seeking Financial Guidance

At the risk of piling on, you definitely don't need to spend $56 per month on tobacco and alcohol, especially tobacco. This is the list that someone provided on average household expenses, not his specific expenses. Correct, that was me, and the "average" is a national sample. Two interesting facts...
by Independent
Thu Mar 12, 2015 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Why not use inflation-adjusted SPIA?
Replies: 117
Views: 9268

Re: Why not use inflation-adjusted SPIA?

Can someone point me to the evidence that insurance companies use TIPS for SPIAs to any large extent? First, we need to find a company that is selling "large" amounts of CPI indexed annuities. :wink: Since sales have been lousy, I wouldn't expect to see any big chunks of TIPS on insurance company b...
by Independent
Tue Mar 10, 2015 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Slate Article: Dream on Babyboomers-Semiretirement is a Myth
Replies: 53
Views: 9994

Re: Slate Article: Dream on Babyboomers-Semiretirement is a

I like this Ghilarducci quote: “Working longer is a retirement plan like winning the lottery or dying earlier is a retirement plan. Being able to work longer is not a plan. It’s a hope.” Lots of people retire because they are forced to -- poor health, employer downsizes, age discrimination when they...
by Independent
Mon Mar 09, 2015 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: The salary you must earn to buy a home: $48,603.82
Replies: 24
Views: 5283

Re: The salary you must earn to buy a home: $48,603.82

What do you think of these calculations? I feel like they're a bit aggressive on the home-buying end. They say someone making $40k a year can buy a $200k house, a 5:1 ratio, even with 20% down the mortgage is 4x yearly income. I don't feel like that's actually "affordable". Something closer to 2-3x...
by Independent
Mon Mar 09, 2015 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Poll: Are you happy after retirement?
Replies: 41
Views: 5743

Re: Poll: Are you happy after retirement?

My stress level dropped way off. I hadn't realized that I was already getting "on edge" on Sunday evenings, just anticipating the work week. Retirement brought some real challenges and sorrow related to family members' health. Do I include those in "retirement happiness" for the poll? They would hav...
by Independent
Sun Mar 08, 2015 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: 31 Year Old Seeking Financial Guidance
Replies: 46
Views: 6485

Re: 31 Year Old Seeking Financial Guidance

You said "comfort zone", so I think that's where you start. You might have a sense that your expenses are going up too fast. I'm the analytical type so I get comfort by digging into details. I can't tell you whether you're spending "too much" or "too little" on any of your items. I can tell you what...
by Independent
Sun Mar 08, 2015 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: VUL - what should my course of action be?
Replies: 8
Views: 1362

Re: VUL - what should my course of action be?

I am a 32 year old physician and am another example of someone who has a VUL policy through the recommendation of a financial advisor, and now am coming to my senses. My now former financial advisor told me that the more I contribute to the VUL, the more the fees are "justified". I am new to unders...
by Independent
Sun Mar 08, 2015 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: VUL - what should my course of action be?
Replies: 8
Views: 1362

Re: VUL - what should my course of action be?

Hello Bogleheads, So like a lot of people, I was advised to get a VUL without really knowing what I was getting into. Anyways, It's been almost 5 years since I've gotten it. After reading some horror stories about people and their VULs I'm wondering about my situation. From my perspective, it seems...
by Independent
Sun Mar 08, 2015 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Having babies, buying houses, getting responsible...
Replies: 21
Views: 3883

Re: Having babies, buying houses, getting responsible...

TS, 1) You have too many major financial events coming at you at the same time. When we were in this position, my wife ended her teaching job in June, we bought a house in September, and our first child was born in December. It didn't seem outrageously risky to me at the time. We had a very good ha...