Search found 3055 matches

by #Cruncher
Thu Aug 13, 2020 8:11 am
Forum: Investing - Theory, News & General
Topic: Buy TIPS Mutual Fund or I-Bonds?
Replies: 28
Views: 2891

Re: Buy TIPS Mutual Fund or I-Bonds?

If I understand your presentation correctly, it seems to put I Bonds purchased today (given the current real yield curve) in a fairly good light vs. TIPS in a Roth IRA, especially for one who expects to be in a low tax bracket when redeeming them. I agree. The only case [1] I can think of where TIP...
by #Cruncher
Wed Aug 12, 2020 12:03 pm
Forum: Investing - Theory, News & General
Topic: Buy TIPS Mutual Fund or I-Bonds?
Replies: 28
Views: 2891

Re: Buy TIPS Mutual Fund or I-Bonds?

We are trying to figure out if Ibonds [0% plus inflation*(1-taxes)] will outperform TIPS in a retirement account [-1.25% + inflation}. The following table shows the breakeven inflation rate. I.e., the inflation rate at which the after tax value of a 0% fixed rate I Bond equals the value of a TIPS i...
by #Cruncher
Tue Aug 11, 2020 9:28 pm
Forum: Investing - Theory, News & General
Topic: Rule of 72
Replies: 21
Views: 2687

Re: Rule of 72

The Rule of 72 is actually a simplification of more complex math. It is more accurate close to the 7-10% range but is increasingly inaccurate in its estimate as interest rates become rather large or rather small. For example, using an actual exponential growth number, 7% compounding reaches double ...
by #Cruncher
Tue Aug 11, 2020 8:05 am
Forum: Non-US Investing
Topic: US TIPS as an European Investor
Replies: 4
Views: 352

Re: US TIPS as an European Investor

I'm from Europe and look for exposure to the US dollar ... I backtested TIPS via portfoliovisualizer and compared it with the Dollar Index. When the dollar had a bad year, TIPS usually performed well ... So it's a investment in the dollar with a "hedge" against a weak dollar! Does that make sense? ...
by #Cruncher
Sun Aug 09, 2020 12:01 pm
Forum: Investing - Theory, News & General
Topic: Inflation, TIPS and asset allocation
Replies: 74
Views: 3807

Re: Inflation, TIPS and asset allocation

TIPS have historically underperformed their nominal counterparts. Not universally true. Since 2010 I've been updating a thread, Treasury Notes Return vs Actual TIPS Return , to compare the nominal yield of 5 and 10 year TIPS bought at auction and held to maturity against the yields of nominal Treas...
by #Cruncher
Sat Aug 08, 2020 11:32 am
Forum: Personal Finance (Not Investing)
Topic: How to receive answers to specific SS benefit queries from the source
Replies: 21
Views: 1347

Re: How to receive answers to specific SS benefit queries from the source

I have always intended to apply for my own benefits when I turn 70, on July 7, 2021. ... I would like to know what my monthly benefit would be if I apply (1) around October of this year; (2) around December/January of 2021; and (3) on my 70th birthday. Without knowing your Primary Insurance Amount ...
by #Cruncher
Sun Aug 02, 2020 2:04 pm
Forum: Personal Investments
Topic: Good idea to hold TIPS now?
Replies: 85
Views: 6139

Re: Good idea to hold TIPS now?

From morningstar, comparing VIPSX (Vanguard tips fund) and VSIGX (vanguard intermediate treasury index fund) which have roughly similar durations: fund ... 10 yr [extracting only 10-year comparison from Grok's table] vsigx ... 3.26 vipsx ... 3.56 ... Why have tips outperformed? Because inflation EX...
by #Cruncher
Wed Jul 29, 2020 7:29 am
Forum: Personal Investments
Topic: Should I start social security at 62 to invest it?
Replies: 74
Views: 8335

Re: Should I start social security at 62 to invest it?

You'll find that the necessary ROI is often in the 4-5% (real) range for the higher earner in a couple. Or said differently, the expected rate of return from delaying from 62 to 70 is often roughly 4-5% real, for the higher earner in a married couple. Thinks for doing the computations, Mike. The fo...
by #Cruncher
Mon Jul 27, 2020 7:22 am
Forum: Investing - Theory, News & General
Topic: EE Bonds as period certain annuity - revisited
Replies: 15
Views: 1508

Re: EE Bonds as period certain annuity - revisited

That $327k for the annuity is in 2020 dollars. The $200k spent on the EE bonds was purchased with earlier, more valuable dollars. That's why I included the BLS CPI figures. If my arithmetic is correct, the CPI-adjusted purchase price in today's dollars is $242,100. (a $10k purchase in 2000 would co...
by #Cruncher
Sun Jul 26, 2020 2:23 pm
Forum: Personal Investments
Topic: Should I start social security at 62 to invest it?
Replies: 74
Views: 8335

Re: Should I start social security at 62 to invest it?

The model I referred to was a model set up by by son ... Based on his model ... if I live to standard life expectancy I only have to beat 1% return to have starting at 62 give the greatest total return. If I live to 85 I need 4% return to have starting at 62 give the greatest total return. If I liv...
by #Cruncher
Sun Jul 26, 2020 11:08 am
Forum: Investing - Theory, News & General
Topic: Behavior of TIPS versus Treasuries in March
Replies: 141
Views: 7043

Re: Behavior of TIPS versus Treasuries in March

Right now at low real interest rates such a [non-rolling TIPS] ladder is expensive, ... Yes, indeed! I've updated my TIPS Ladder Spreadsheet Excel file with the just-auctioned 0.125% July 2030 TIPS and Friday's WSJ TIPS Quotes . It shows the default ladder has a purchase cost of $976,000 for 30,000...
by #Cruncher
Tue Jul 21, 2020 2:21 am
Forum: Personal Investments
Topic: UPCOMING 10 year Tips and 20 years Tips auction
Replies: 8
Views: 926

Re: UPCOMING 10 year Tips and 20 years Tips auction

In your opinion, what amount of negative yield is so negative on a 20 year tips that you would not consider purchasing it? If you need a 20-year TIPS, buy it regardless of the yield. But the only possible need I see is as part of a non-rolling TIPS ladder to provide a guaranteed constant dollar inc...
by #Cruncher
Mon Jul 20, 2020 4:30 am
Forum: Personal Investments
Topic: UPCOMING 10 year Tips and 20 years Tips auction
Replies: 8
Views: 926

Re: UPCOMING 10 year Tips and 20 years Tips auction

This coming Wednesday there is a 20 year tips auction. Incorrect. The auction Wednesday is for a 20-year nominal Treasury bond, not a TIPS. [1] See the offering announcement . [2] This coming Thursday there is a 10 year tips auction. Correct. Here is the offering annountcement . [2] My guess for th...
by #Cruncher
Sat Jul 18, 2020 4:53 pm
Forum: Investing - Theory, News & General
Topic: TIPS/LMP Concerns
Replies: 41
Views: 1764

Re: TIPS/LMP Concerns

... Let us assume the next auction for 10-year TIPS sets a yield to maturity of -0.5%. So, would I pay $1005 for that $1000 worth of TIPS? If that is so, when I redeem at term, I get my investment - $5, right? ... ... if the YTM is -0.5% real that is the annual over 10 years, so I think that mean y...
by #Cruncher
Wed Jul 15, 2020 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13502

Re: Delaying Social Security: is the wisdom still relevant

... my delay which will result in 132% of my PIA at age 70 two years from now, ... In my case at age 82, once the law took effect in 2034, my benefit with a 24% reduction would be 108% of PIA. If I had filed at FRA my benefit would be reduced to 76% of PIA. You seem to assume, vested1, that any red...
by #Cruncher
Tue Jul 14, 2020 3:32 pm
Forum: Investing - Theory, News & General
Topic: U.S. Treasury Inflation Protected Securities (TIPS) ETF
Replies: 78
Views: 6407

Re: U.S. Treasury Inflation Protected Securities (TIPS) ETF

Let's say I buy a 5-year TIPS when inflation is 1%, and the 5-year expected inflation is also 1%. The very next day, 5-year expected inflation changes to 2%. Now, you're saying the adjusted price (what I see in my brokerage account) does not change. This is bizarre to me. Shouldn't the market be pr...
by #Cruncher
Sun Jul 12, 2020 11:42 pm
Forum: Personal Consumer Issues
Topic: Travelling to Fort Myers
Replies: 6
Views: 867

Re: Travelling to Fort Myers

Cumulatively Lee County (of which Fort Myers is the county seat) has about the same number of Covid-19 cases and deaths per capita as Florida overall, but less than Dade County. Here are the latest figures. USA Florida Lee County Dade County Totals ---- ------- ---------- ----------- Population 330m...
by #Cruncher
Sun Jul 12, 2020 5:02 pm
Forum: Investing - Theory, News & General
Topic: U.S. Treasury Inflation Protected Securities (TIPS) ETF
Replies: 78
Views: 6407

Re: U.S. Treasury Inflation Protected Securities (TIPS) ETF

... and after [purchasing TIPS], I'm talking about the dollar amount that my Vanguard statement shows. That's the number I'm interested in. The whole point about TIPS is not having to be interested in their dollar value reported on your brokerage statement. One buys TIPS to provide a known constant...
by #Cruncher
Sat Jul 11, 2020 2:29 pm
Forum: Investing - Theory, News & General
Topic: U.S. Treasury Inflation Protected Securities (TIPS) ETF
Replies: 78
Views: 6407

Re: U.S. Treasury Inflation Protected Securities (TIPS) ETF

There might be some confusion due to using the term "price", ... Regarding TIPS there are two possible meanings for "price". Ambiguity about which meaning is intended probably leads to more confusion than any other aspect of TIPS. "Unadjusted price" is how much you pay for each $100 of inflation-ad...
by #Cruncher
Fri Jul 10, 2020 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Yet Another When to Take Social Security Thread
Replies: 17
Views: 1511

Re: Yet Another When to Take Social Security Thread

If I'm 70/30 and will continue with that over the long term, shouldn't the expected return be the 70/30 long term return? By way of analogy, imagine that Vanguard releases a new bond fund tomorrow. When evaluating the new fund to determine whether you want to add it to your portfolio or not, would ...
by #Cruncher
Fri Jul 10, 2020 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13502

Re: Delaying Social Security: is the wisdom still relevant

If you are not yet retired, working for an additional month will probably (dependent upon your salary) give you more money than the differences between claiming at any different ages. Not likely unless you have haven't worked much more than the 10 years [1] necessary to qualify for Social Security ...
by #Cruncher
Fri Jul 10, 2020 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Taxation of Social Security Benefits, etc.
Replies: 7
Views: 844

Re: Taxation of Social Security Benefits, etc.

Now, what if I take an extra $9K out of my IRA? I think that would be tax-free, too. Not quite. With $37K SS, you start incurring federal tax at just a bit over $21K tIRA withdrawal. That's right. You could only increase the traditional IRA withdrawal $6,033 to $21,033 before incurring tax. This is...
by #Cruncher
Thu Jul 09, 2020 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13502

Re: Delaying SSi: is the wisdom still relevant

... What about a couple who are roughly equal in age and also roughly equal in earnings history, ...? I thought that it was always best for both to wait until age 70 no matter what, as it simply serves to maximize longevity insurance, period. ... ... When both spouses have similar earnings history ...
by #Cruncher
Wed Jul 08, 2020 10:28 am
Forum: Investing - Theory, News & General
Topic: Does it really matter when you claim Social Security
Replies: 109
Views: 9422

Re: Does it really matter when you claim Social Security

SS was set up to be neutral with respect to claiming age... Right, but doesn't that depend on the interest rate used? ... And does anyone know what rate is used in the calculation? Given an assumed life expectancy we can calculate the "neutral" interest rate (aka discount rate) for delaying one yea...
by #Cruncher
Thu Jul 02, 2020 11:09 am
Forum: Investing - Theory, News & General
Topic: TIPS and I Bonds
Replies: 16
Views: 1653

Re: TIPS and I Bonds

I’m having trouble following from your link exactly how the forward inflation rate is being calculated. As vineviz and Robot Monster point out above, the page 5-Year, 5-Year Forward Inflation Expectation Rate (T5YIFR) says This series is a measure of expected inflation (on average) over the five-ye...
by #Cruncher
Tue Jun 30, 2020 10:23 pm
Forum: Investing - Theory, News & General
Topic: Consistent Yield & Duration to Help Choose TIPS Fund
Replies: 114
Views: 36925

Re: Consistent Yield & Duration to Help Choose TIPS Fund

Edited 9/25/2020 4:35 PM to update yields through today. Over the past week short term yields rose slightly while long term yields remained about the same. Edited 9/18/2020 4:45 PM to update yields through today. Again they barely changed from the previous week. Edited 9/11/2020 4:40 PM to update y...
by #Cruncher
Sat Jun 27, 2020 3:39 pm
Forum: Investing - Theory, News & General
Topic: Quick question regarding delayed SS for brother
Replies: 6
Views: 438

Re: Quick question regarding delayed SS for brother

Brother born 1959 will retire at age 65 (2024) and intends to start SS at that time. ... Brother thinks if he doesn't have earned income up to age 70, that the zero working years 2024-2029 on SS report, will actually reduce his SS rather than increase the payout. Not working after age 65 will not r...
by #Cruncher
Fri Jun 26, 2020 5:57 am
Forum: Personal Investments
Topic: quick question about inheritance for young adults (age 19-23) about order of accounts?
Replies: 30
Views: 1129

Re: quick question about inheritance for young adults (age 19-23) about order of accounts?

Celia recently wrote, "A dollar in Roth is more valuable than a dollar in tax deferred. A dollar in tax deferred is more valuable than a dollar in taxable." Which got me thinking, am I wrong in how I'm thinking or does Celia's phrase only apply to money that is going to be taxed and you want to fig...
by #Cruncher
Thu Jun 25, 2020 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Buying "fixed income immediate annuity". How do I compare them?
Replies: 49
Views: 2310

Re: Buying "fixed income immediate annuity". How do I compare them?

You don't get 2.6% AND a return of your $485,000. The cash flow of the annuity is equivalent to this; i.e., equivalent to receiving 2.6% of the $485,000 every year and, in addition, getting $485,000 back at some future date. This is the same cash flow as a 2.6% coupon bond purchased at par. Columns...
by #Cruncher
Wed Jun 24, 2020 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Buying "fixed income immediate annuity". How do I compare them?
Replies: 49
Views: 2310

Re: Buying "fixed income immediate annuity". How do I compare them?

2. Is the 2% inflation protection worth that huge decrease in payments? How do you calculate whether it is or isn't worth it? The 2% annual increase option does not appear to be worth it. It reduces the internal rate of return on the $485,000 investment about 0.2% to 0.4% points. Incr With Mo Amt I...
by #Cruncher
Fri Jun 19, 2020 2:28 pm
Forum: Investing - Theory, News & General
Topic: Big Difference in TIPS fund returns: SCHP vs VAIPX
Replies: 20
Views: 1972

Re: Big Difference in TIPS fund returns: SCHP vs VAIPX

The Fidelity fund has a much shorter duration than the Vanguard and Schwab funds. Here are the currently reported durations, all as of 5/31/2020: 7.6 : Vanguard VAIPX 5.68 : Fidelity FIPDX 7.62 : Schwab SWRSX (Morningstar) Fidelity is calculating its duration differently than Vanguard or Schwab. I ...
by #Cruncher
Wed Jun 17, 2020 11:01 am
Forum: Investing - Theory, News & General
Topic: TIPS and Munis are not as liquid as I thought
Replies: 20
Views: 2133

Re: TIPS and Munis are not as liquid as I thought

I have been using SCHP (Schwab’s TIPS ETF.) It is low cost at 0.05% ER. However I am considering moving that money to VIPSX (Vanguard Inflation-Protected Securities Fund.) It is higher cost at 0.20% ER. ... a mutual fund with TIPS is a more comfortable vehicle if you need to pull any money out. You...
by #Cruncher
Tue Jun 16, 2020 2:44 pm
Forum: Investing - Theory, News & General
Topic: Treasury Notes Return vs Actual TIPS Return
Replies: 13
Views: 4058

Re: Treasury Notes Return vs Actual TIPS Return

I've updated my comparisons to include TIPS maturing in 2020. These are the 10-year TIPS issued in 2010 and the 5-year TIPS issued in 2015. Here is a chart showing the difference between the inflation-adjusted return of a 10-Year TIPS bought at auction and held to maturity and my estimate of the yie...
by #Cruncher
Mon Jun 15, 2020 6:32 am
Forum: Investing - Theory, News & General
Topic: Big Difference in TIPS fund returns: SCHP vs VAIPX
Replies: 20
Views: 1972

Re: Big Difference in TIPS fund returns: SCHP vs VAIPX

... I thought the issues with Bond ETFs mostly pertained to more illiquid bonds like corporates, munis, etc. I thought for treasuries, the pricing discount to NAV would not be something to worry about. well i think that's what we all thought. but tips etfs went nuts during the meltdown in march. th...
by #Cruncher
Sat Jun 13, 2020 2:03 pm
Forum: Personal Investments
Topic: This seems better than nominal treasury or corporate bonds, am I missing something?
Replies: 41
Views: 3814

Re: This seems better than nominal treasury or corporate bonds, am I missing something?

... the Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX) looks like a good place to park money with a 30 day SEC yield of 1.44% ... and that does not include any adjustment for inflation ... As others have pointed out, the reported 1.44% 30 day SEC yield is spurious. Someone at V...
by #Cruncher
Thu Jun 11, 2020 3:31 am
Forum: Investing - Theory, News & General
Topic: TIPS yielding almost 2% real
Replies: 13
Views: 2585

Re: TIPS yielding almost 2% real

the fund [ VTAPX ] is an index fund. according to barclays the index it tracks, 0-5 year tips, currently has a real yield of -0.23% There are only 17 TIPS maturing in the next five years. It's a simple matter to just average their yields from a source like WSJ TIPS Quotes . A simple average won't b...
by #Cruncher
Fri Jun 05, 2020 3:58 pm
Forum: Investing - Theory, News & General
Topic: TIPs funds YTM Question
Replies: 5
Views: 550

Re: TIPs funds YTM Question

I actually came here searching for a reason why Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX) had such a high 30 day SEC yield of 1.44%, … The 1.44% seems just as wacky as the SEC yield reported for VTIP. You can see this by doing a Search for more historical price information...
by #Cruncher
Fri Jun 05, 2020 6:25 am
Forum: Investing - Theory, News & General
Topic: TIPs funds YTM Question
Replies: 5
Views: 550

Re: TIPs funds YTM Question

I'm seeing VTIP with a 0.5% YTM: This is the "Yield to maturity (Estimated)*" from the Portfolio & Management tab. The footnote reads: * This figure is an estimated yield-to-maturity (YTM) for the fund. It is calculated by adding the trailing 12-month inflation adjustment to the "real" (i.e., befor...
by #Cruncher
Wed Jun 03, 2020 5:33 am
Forum: Personal Investments
Topic: Actual "hit" on Negative Tip yield
Replies: 2
Views: 440

Re: Actual "hit" on Negative Tip yield

There is a 7/15/2050 TIP, coupon 0.025 ... I assume you mean the 0.25% TIPS maturing February 15, 2050 . There are no TIPS that mature in July 2050. Would some one tell me what actual amount of loss one would sustain assuming they bought 10k dollars of that TIP today and it has negative yield to ma...
by #Cruncher
Mon Jun 01, 2020 5:35 am
Forum: Investing - Theory, News & General
Topic: Duration Question
Replies: 38
Views: 1739

Re: Duration Question

If I own a bond fund with a five year duration, and interest rates rise by one percent shortly after I buy it, I will lose money if I sell shortly after the purchase. However, if you hold the fund and reinvest dividends, you will break even after five years. This is shown by column C of the table b...
by #Cruncher
Sun May 31, 2020 12:19 pm
Forum: Personal Investments
Topic: TIPS--Explain please...
Replies: 6
Views: 864

Re: TIPS--Explain please...

Because the face value changes over time, if you buy TIPS on the secondary market you have to pay not only the bond's face value, but also it accrued value, as well. (I think you mean to say, the indexed-principal changes over time, Raybo, not the face value .) This is true; but some may read it to...
by #Cruncher
Sat May 30, 2020 7:51 am
Forum: Personal Investments
Topic: How are you accounting for T-Bills, Bonds, TIPS, etc?
Replies: 12
Views: 999

Re: How are you accounting for T-Bills, Bonds, TIPS, etc?

Are you tracking each purchase individually ... or just keeping a lump sum for "This is what's currently in treasury direct "? … Is there any reason I'd want to treat them as individual securities from a bookkeeping standpoint? This matches the way Treasury direct groups them. I do not put specific...
by #Cruncher
Fri May 29, 2020 3:58 pm
Forum: Investing - Theory, News & General
Topic: Consistent Yield & Duration to Help Choose TIPS Fund
Replies: 114
Views: 36925

Re: Consistent Yield & Duration to Help Choose TIPS Fund

Edited 6/26/2020 4:40 PM to add yields through today. Yields of all indexes 1-5, 1-10, 1+, and 15+ fell another 0.1% points this week. 0 - 5 1 - 5 1 - 10 1+ 15+ (0.80%) (0.89%) (0.84%) (0.71%) (0.21%) Fri 06/26/2020 (0.84%) (0.86%) (0.81%) (0.68%) (0.18%) Thu 06/25/2020 (0.39%) (0.79%) (0.76%) (0.6...
by #Cruncher
Thu May 28, 2020 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Pension with No COLA
Replies: 11
Views: 1332

Re: Pension with No COLA

For instance, if you expect to collect a $10,000 annual pension for 20 years and inflation to be 2%, … One approach suggested by some is to invest a portion of your pension payout early on to help cover later inflation. So using the above example, you might only spend $8,000 of the pension's payout...
by #Cruncher
Wed May 27, 2020 5:55 am
Forum: Personal Investments
Topic: 30-Day Yield Negative on TIPS Mutual Fund
Replies: 3
Views: 607

Re: 30-Day Yield Negative on TIPS Mutual Fund

I’m curious how they come up with a 30-day SEC average real yield of -0.96% ... It appears the Fidelity® Inflation-Protected Bond Index Fund (FIPDX) combines the real yield with the annualized change in the CPI over the previous 30 days. When I do this for three dates I get results fairly close to ...
by #Cruncher
Tue May 26, 2020 8:25 am
Forum: Personal Investments
Topic: SEPP calculation - Fixed annuitization Method - annuity factor ?
Replies: 7
Views: 401

Re: SEPP calculation - Fixed annuitization Method - annuity factor ?

Bankrate has a calculator: https://www.bankrate.com/retirement/calculators/72-t-distribution-calculator/ Choose "uniform life table" in the drop-down for life expectancy table. Here's how you can match their calculation: Here is Horton 's calculation in more compact form where the discount rate, 2....
by #Cruncher
Mon May 25, 2020 5:52 am
Forum: Investing - Theory, News & General
Topic: Historical Statistics for Inflation, Bonds and Stocks
Replies: 8
Views: 1960

Re: Historical Statistics for Inflation, Bonds and Stocks

Looks like 70%-60% equity would have kept up with inflation to at least break even. Actually, as shown in the chart below, over this time period any stock:bond allocation from 0:100 to 100:0 would have beaten inflation. Even an all bond portfolio would have more than quadruped in real value over th...
by #Cruncher
Sun May 24, 2020 12:06 pm
Forum: Investing - Theory, News & General
Topic: EE bond effective annual yield?
Replies: 3
Views: 396

Re: EE bond effective annual yield?

Pretax an EE bond doubles in 20 years. If the federal tax rate at that time is 22%, each $1 EE bond will grow to $1.78 after tax ($2 less $0.22 tax on the $1 gain). This is an annual growth rate of 2.9250%. 2.9250% = 1.78 ^ (1 / 20) - 1 With a 22% federal and 5.5% state tax rate every year this corr...
by #Cruncher
Thu May 21, 2020 1:52 pm
Forum: Personal Investments
Topic: Open Social Security strategy results question
Replies: 59
Views: 4481

Re: Open Social Security strategy results question

... my plan ... is to have enough taxable income to max out the 12% bracket .. If one does that, the hump considerations go away. Correct? As vtMaps says, this isn't correct. If one has long term capital gains (LTCG) or qualified dividend income (QDI), it's even possible for additional non-SS ordin...
by #Cruncher
Thu May 21, 2020 6:30 am
Forum: Personal Investments
Topic: Open Social Security strategy results question
Replies: 59
Views: 4481

Re: Open Social Security strategy results question

...That [equalizing taxable income every year] is not always the best strategy. For example: A single taxpayer with SS = $35,000 and RMD = $30,000 wishes to take (in addition to their RMD) taxable distributions of $16,000 per year. If he takes $16,000 per year for 4 years ($64,000 total), his total...