Search found 12090 matches

by The Wizard
Sun Oct 07, 2018 11:12 am
Forum: Personal Finance (Not Investing)
Topic: A strategy to pay off home at retirement?
Replies: 57
Views: 4157

Re: A strategy to pay off home at retirement?

Answer depends on your particular financial details. I agree with some of the others that doing a lump sum payoff of mortgage right before retirement isn't the best idea if interest rate is low or if payoff amount reduces your liquidity too much. If you have an "old" mortgage, say 20 years along, t...
by The Wizard
Sun Oct 07, 2018 10:57 am
Forum: Investing - Help with Personal Investments
Topic: Mortgage lump sum question - What would you do?
Replies: 23
Views: 2474

Re: Mortgage lump sum question - What would you do?

If you really, seriously want to pay off the mortgage (I think it is a bad idea) you could contact the bank and ask what kind of discount they would give you for an immediate payment in full. I suspect you could pay off the mortgage at 90 cents on the dollar, maybe less. Why would the bank give you...
by The Wizard
Sun Oct 07, 2018 9:43 am
Forum: Personal Consumer Issues
Topic: What purchase saved you the most money?
Replies: 136
Views: 12594

Re: What purchase saved you the most money?

VTSAX Same here. I chuckled perversely when I read the title of this thread. If such-and-such is on sale for 40% off, think of how much you can save. Or better yet, save 100% by not doing impulse purchases of marginally useful items to begin with. But anyhow, I suppose I've saved money on various t...
by The Wizard
Sun Oct 07, 2018 8:04 am
Forum: Personal Finance (Not Investing)
Topic: A strategy to pay off home at retirement?
Replies: 57
Views: 4157

Re: A strategy to pay off home at retirement?

Answer depends on your particular financial details. I agree with some of the others that doing a lump sum payoff of mortgage right before retirement isn't the best idea if interest rate is low or if payoff amount reduces your liquidity too much. If you have an "old" mortgage, say 20 years along, th...
by The Wizard
Thu Oct 04, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Opinion's: Best time to withdraw RMD's when required to do so.
Replies: 42
Views: 3253

Re: Opinion's: Best time to withdraw RMD's when required to do so.

...It is recommended that the asset that is expected to grow the fastest be the one converted or withdrawn to taxable to slow down the growth in the IRA. I don't agree. Growth in your tIRA is good, within the limits of your risk tolerance and AA. You could minimize growth (and future taxes) in your...
by The Wizard
Thu Oct 04, 2018 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Opinion's: Best time to withdraw RMD's when required to do so.
Replies: 42
Views: 3253

Re: Opinion's: Best time to withdraw RMD's when required to do so.

To answer the OP, the best time to take RMDs is on the 20th of each month, in equal amounts.

And generally, once you start RMDs and SS, it's probably good to stop doing any more Roth conversions...
by The Wizard
Thu Oct 04, 2018 7:26 pm
Forum: Personal Consumer Issues
Topic: Fall Foliage
Replies: 29
Views: 2275

Re: Fall Foliage

It's good in New England.
Go mid week anytime from now thru end of October.
How far north you need to go will depend...
by The Wizard
Wed Oct 03, 2018 6:09 pm
Forum: Investing - Theory, News & General
Topic: Need a better RMD calculator
Replies: 19
Views: 835

Re: Need a better RMD calculator

All RMD calculators that I see ask you what your retirement balance is on December of last year, your birth date, and the birth date of your spouse. They also ask for a predicted rate of return. The problem I see is that they don't ask for what your additional predicted tax deferred contributions w...
by The Wizard
Tue Oct 02, 2018 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: In retirement
Replies: 22
Views: 2344

Re: In retirement

My Federal income tax is quite a bit larger, retired age 68.
Don't hold any bonds or savings account in taxable since those get taxed as ordinary income.
Just hold large cap index funds in taxable account.
That's what I do.

Beyond that, focus on increasing income, not reducing taxes.
Enjoy...
by The Wizard
Tue Oct 02, 2018 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Where to move Waddell Reed taxable account?
Replies: 3
Views: 340

Re: Where to move Waddell Reed taxable account?

Either Vanguard or Fidelity is fine, yes.
Pick your favorite and Go For It.

Talk to a rep at your favorite about in kind or not.
Shouldn't be a big deal...
by The Wizard
Sun Sep 30, 2018 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 6692

Re: Why is Home Part of NW

willthrill81, << there was still home equity present. >> Home equity only make sense when a person could sell the house and there were buyers. If nobody is buying, the home equity is zero. Whether the mortgage is paid off, it is irrelevant at that point. KlangFool I can't totally disagree, Klang, b...
by The Wizard
Sun Sep 30, 2018 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 6692

Re: Why is Home Part of NW

What does Net Worth have to do with your ability to retire next year? Very little. What actually matters is: your level of Investible Assets... So owning a home free and clear rather than renting an equivalent home doesn't matter in retirement? I would rephrase it to say that what matters is whethe...
by The Wizard
Sun Sep 30, 2018 9:50 pm
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 137
Views: 12978

Re: Grok's LMP-4: The 3-legged stool approach to retirement planning

...Annuities are a bit different than LMP but the math there is you buy an asset that will give you a 3.5-5% (assuming age 60-70 couple) real SWR... My TIAA annuities were 6.5% to 7.0% payout for an age 63 to 67 single person. And some of them increase over time as the stock and real estate markets...
by The Wizard
Sun Sep 30, 2018 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 6692

Re: Why is Home Part of NW

KlangFool wrote:
Sun Sep 30, 2018 9:32 pm
OP,

1) I do not count net worth. It is a meaningless number.

2) I only count my investment value aka the portfolio that can feed me when I am retired/FI.

KlangFool
Well stated, Klang...
:sharebeer
by The Wizard
Sun Sep 30, 2018 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 6692

Re: Why is Home Part of NW

theplayer11 wrote:
Sun Sep 30, 2018 9:30 pm
since net worth is a meaningless figure, why does it matter?
Good question.
It DOESN'T really matter.

Next question...
by The Wizard
Sun Sep 30, 2018 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 6692

Re: Why is Home Part of NW

Hi all, I finally got around to creating an account, and I'm thinking through questions I've had over the months. One that keeps popping up is this: Why is one's primary residence part of a net worth portfolio? Net Worth "portfolio" isn't quite the right term. But Net Worth includes all of your pos...
by The Wizard
Sun Sep 30, 2018 9:24 pm
Forum: Investing - Theory, News & General
Topic: Social Security and Asset Allocation
Replies: 50
Views: 4918

Re: Social Security and Asset Allocation

duffer wrote:
Sun Sep 30, 2018 5:10 pm
John Bogle has clearly and repeatedly urged that social security, pensions, and annuities should all be counted as part of the fixed income portion of one's asset allocation...
I'm somewhat sorry to say this, but he's incorrect on that...
by The Wizard
Sun Sep 30, 2018 9:20 pm
Forum: Personal Consumer Issues
Topic: how to determine the maintenance schedule for newer cars?
Replies: 18
Views: 1259

Re: how to determine the maintenance schedule for newer cars?

The only time I can see this a problem is when you are about to leave on a long (thousand-mile) trip and you are not sure if the car will need maintenance soon. In such a case I might be inclined to do an early oil change. Other than an oil change- I don't think there is anything that can't wait fo...
by The Wizard
Sun Sep 30, 2018 8:52 pm
Forum: Personal Consumer Issues
Topic: Anyone ordered a vehicle through a dealership?
Replies: 40
Views: 3098

Re: Anyone ordered a vehicle through a dealership?

The problem is, is that incentives and rebates go by where you will be registering the car. So it don’t help to fly acrosss the country. All dealers pay the same price for the car. Rebates are regional. That might vary from one brand to another. And how does a dealer know where I'm registering the ...
by The Wizard
Sun Sep 30, 2018 8:32 pm
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 137
Views: 12978

Re: Grok's LMP-4: The 3-legged stool approach to retirement planning

...The problem with all LMP type portfolios is that they don't do in general do any better than just holding a more conservative portfolio. If you have 25x and put 10 years of saving into bonds and invest the rest 50/50, you end up in just about the same spot as the person that goes 30/70 stocks bo...
by The Wizard
Sun Sep 30, 2018 8:10 pm
Forum: Personal Consumer Issues
Topic: Anyone ordered a vehicle through a dealership?
Replies: 40
Views: 3098

Re: Anyone ordered a vehicle through a dealership?

Yes. I ordered my 2016 F-150 from a local dealership, the third or fourth vehicle I've done this way. I frequented f150 forum dot com for a few months as I put together my list of features and options: large fuel tank, no bedliner, etc, etc. I then put my vehicle together using Ford's online build a...
by The Wizard
Sun Sep 30, 2018 9:22 am
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 137
Views: 12978

Re: Grok's LMP-4: The 3-legged stool approach to retirement planning

As far as three-legged retirement income stools, I have one also: 1) pension/annuity income 2) SS income 3) tax-deferred portfolio withdrawal Income As far as relative magnitude, #1 is largest and presently, in my 60's, #3 is second and #2 (divorced spouse benefit) is smallest. But in my 70s in a fe...
by The Wizard
Sun Sep 30, 2018 9:08 am
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 137
Views: 12978

Re: Grok's LMP-4: The 3-legged stool approach to retirement planning

New 3-legged stool: 1. Social Security, 2. defined contribution savings, 3. paid-off house. Those are my legs. A paid off house isn't really a retirement income source, unless you plan to sell it and move into a 1 BR apartment. In fact, the bigger the house, the higher the operating expenses, inclu...
by The Wizard
Sun Sep 30, 2018 8:28 am
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 62
Views: 8402

Re: What to do at 62?

...The price of having them in your Roth is paying taxes now. Again, paying taxes far in the future would be preferable over paying now, so PV of cash flows needs to be part of the analysis, not just the absolute value of the tax payments. I think most people will agree if we give a dollar number e...
by The Wizard
Sat Sep 29, 2018 2:16 am
Forum: Investing - Help with Personal Investments
Topic: Are social security (and Medicare) taxes affected by the standard deduction
Replies: 26
Views: 2802

Re: Are social security (and Medicare) taxes affected by the standard deduction

...I've done my own taxes for 30+ years - but I don't draw social security yet, so I'm still wrapping my head around how taxability of SS works. Ok, but you've figured out how to use that worksheet formula to compute how much of your SS benefit gets included in your AGI. (I prefer above terminology...
by The Wizard
Fri Sep 28, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Are social security (and Medicare) taxes affected by the standard deduction
Replies: 26
Views: 2802

Re: Are social security (and Medicare) taxes affected by the standard deduction

Taxability of Social Security starts at 32K MFJ, is not indexed for CPI It's not quite as simple as that. How much of your Social Security benefit is taxable depends on your "combined income", which is a sum of your Adjusted Gross Income (AGI) plus non-taxable interest payments (i.e. muni bonds etc...
by The Wizard
Fri Sep 28, 2018 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Are social security (and Medicare) taxes affected by the standard deduction
Replies: 26
Views: 2802

Re: Are social security (and Medicare) taxes affected by the standard deduction

...So if Std Deduction is $33K, and taxability of SS is $32K, will SS income be taxed starting at 32K or 33K? If 32K, it seems odd that social security is taxed before ordinary income. First, standard deduction can't possibly be $33k this year, so forget that. Second, there's a worksheet in the ins...
by The Wizard
Fri Sep 28, 2018 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Are social security (and Medicare) taxes affected by the standard deduction
Replies: 26
Views: 2802

Re: Are social security (and Medicare) taxes affected by the standard deduction

So, to give an oversimplified example, say a single guy earned (an inflation indexed) $895 for his entire career. His yearly wages would amount to $10,740 resulting in a tax bill of $0 (because his yearly wages are below the standard deduction threshold of $12,000) but this individual would still b...
by The Wizard
Fri Sep 28, 2018 2:07 pm
Forum: Investing - Theory, News & General
Topic: Don't Fear the Reaper (RMDs) - White Coat Investor blog post
Replies: 65
Views: 7528

Re: Don't Fear the Reaper (RMDs) - White Coat Investor blog post

An easy, perhaps partial, solution to the nasty problem of unneeded income and all its nasty consequences is simply not to claim SS at all ever. That would reduce my AGI by 85% of $40k starting at age 70. I know you said this tongue-in-cheek (or at least I think you did), but as a CPA, you'd be sur...
by The Wizard
Fri Sep 28, 2018 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Mandate from Rollover/Transfer of Retirement Account
Replies: 13
Views: 1146

Re: RMD Mandate from Rollover/Transfer of Retirement Account

Here's a link from Cornell Law school on this topic.
Scroll down to Q-7.
https://www.law.cornell.edu/cfr/text/26/1.402%28c%29-2

I didn't find anything quickly on the IRS website that addresses this in plain English...
by The Wizard
Fri Sep 28, 2018 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Mandate from Rollover/Transfer of Retirement Account
Replies: 13
Views: 1146

Re: RMD Mandate from Rollover/Transfer of Retirement Account

You have a pending RMD liability starting January 1st of the YEAR you turn 70-1/2. The rule is that you can't do any distributions or rollovers in that year or subsequent years until the RMD for that year is taken. Unsure what the penalty is for ignoring that rule. Probably best thing to do now is t...
by The Wizard
Fri Sep 28, 2018 12:44 pm
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 62
Views: 8402

Re: What to do at 62?

...How could paying today (say at age 62) for the taxes on a Roth conversion be preferable to paying later (say at age 72) for the taxes due on a Roth conversion? Paying debts in cheaper future dollars is always preferable, which is the reason why inflation is good. If the tax bill in absolute doll...
by The Wizard
Fri Sep 28, 2018 9:56 am
Forum: Personal Finance (Not Investing)
Topic: SS 2019 COLA could be close to 3%
Replies: 55
Views: 5932

Re: SS 2019 COLA could be close to 3%

Ok, so has the correct interpretation on when DRCs get applied to your benefit check: vtMaps or Beehave?
And where is sscritic when we need him?
by The Wizard
Fri Sep 28, 2018 8:59 am
Forum: Personal Consumer Issues
Topic: cell phone plans--google fi?
Replies: 22
Views: 1926

Re: cell phone plans--google fi?

I've had a Nexus 5x on Project Fi for a few years now and love it. Monthly bills range from $30 to $45. I keep data on all the time, but I have WiFi at most lodgings. Fi works seamlessly in most foreign countries I've been to recently: France, Ireland, Portugal, Spain, Morocco, Italy, Canada. My mai...
by The Wizard
Fri Sep 28, 2018 3:16 am
Forum: Investing - Help with Personal Investments
Topic: Are social security (and Medicare) taxes affected by the standard deduction
Replies: 26
Views: 2802

Re: Are social security (and Medicare) taxes affected by the standard deduction

For a worker who becomes eligible for Social Security payments in 2018, the benefit amount is calculated by multiplying the first $895 of average indexed monthly earnings by 90 percent, the remaining earnings up to $5,397 by 32 percent, and earnings over $5,397 by 15 percent. The sum of these three...
by The Wizard
Thu Sep 27, 2018 4:26 pm
Forum: Personal Consumer Issues
Topic: 2018 Ford Edge
Replies: 31
Views: 2352

Re: 2018 Ford Edge

Jack FFR1846 wrote:
Thu Sep 27, 2018 8:30 am
9 bazillion police cars are Ford Edge. I'd think that says something for it.
I thought the police versions were modified Ford Explorers, but I could be wrong...
by The Wizard
Thu Sep 27, 2018 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 620
Views: 75681

Re: How much money do you want to retire?

...I view cruise ships as something for people too unengaged in life to Priceline or AirBnB lodging, find discounted airline tickets, and figure out the train schedule. Almost as bad as a bus tour. My girlfriend hasn't been to Italy so we're doing the usual Rome/Florence/Venice thing next... My las...
by The Wizard
Thu Sep 27, 2018 8:34 am
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 620
Views: 75681

Re: How much money do you want to retire?

...I Cannot speak for Jwood but our core costs for retirement are near $60K a year. Another $60K a year will cover all kinds of 'elective' activities including travel , boating, winter home rental, etc . The balance we would like to gift to family each year. Similar for me, the proportions anyway. ...
by The Wizard
Thu Sep 27, 2018 8:19 am
Forum: Personal Consumer Issues
Topic: 2018 Ford Edge
Replies: 31
Views: 2352

Re: 2018 Ford Edge

bloom2708 wrote:
Thu Sep 27, 2018 7:56 am
...Drive the Edge. I think you will like it. I would pick it over the Rav4 based on cost.
The Edge is a size bigger than the RAV4.
The more comparable vehicle would be the Ford Escape...
by The Wizard
Thu Sep 27, 2018 6:37 am
Forum: Investing - Help with Personal Investments
Topic: Helping a sibling
Replies: 26
Views: 3107

Re: Helping a sibling

Caduceus wrote:
Thu Sep 27, 2018 4:57 am
...If they can see the destination (Vanguard, passive etfs), however, there is a chance they will execute...
ETFs are more complicated and not the best choice for investing neophytes. I would stick with mutual funds...
by The Wizard
Wed Sep 26, 2018 1:33 pm
Forum: Investing - Theory, News & General
Topic: Social Security and Asset Allocation
Replies: 50
Views: 4918

Re: Social Security and Asset Allocation

watchnerd wrote:
Wed Sep 26, 2018 10:48 am
Jack FFR1846 wrote:
Wed Sep 26, 2018 10:23 am
How close are you to taking social security? Have you factored in the 25% reduction expected in 2034?
Is this official or just a guesstimate?
It's an official guesstimate...
by The Wizard
Wed Sep 26, 2018 7:33 am
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 620
Views: 75681

Re: How much money do you want to retire?

Personally, I think this thread would have been much more interesting, if folks expressed their desired amount as a function of salary, ie 20X, as opposed to a specific dollar amount... I prefer to look at it as an income ratio. In other words, around 1.2 to 1.3 times my net take-home pay when work...
by The Wizard
Wed Sep 26, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: Exactly how do index funds work?
Replies: 15
Views: 1821

Re: Exactly how do index funds work?

"The Wizard"'s post is spot on. Most of us realize that index funds employ a sampling technique to match (as closely as possible) the return of the underlying index. This creates tracking error, which may result in over/under performance with respect to the underlying index. In some cases, tracking...
by The Wizard
Wed Sep 26, 2018 5:27 am
Forum: Investing - Theory, News & General
Topic: Exactly how do index funds work?
Replies: 15
Views: 1821

Re: Exactly how do index funds work?

VTSAX holds 3656 different stocks at last report and has around $750 billion invested.

So let's say today has an excess of new money inflow over redemptions of $20,000,000.
Does the Vanguard computer crank out buy orders for all 3656 stocks to ensure zero tracking error?
by The Wizard
Wed Sep 26, 2018 4:56 am
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2018!
Replies: 306
Views: 43136

Re: Roll Call for the Retirement Class of 2018!

Retired at age 64. Now, everyday is Saturday. I used to look forward to the weekend, now I look forward to the weekday when everything is open and less crowded. Me too, I now dislike weekends and love Mondays. Right. Monday and Tuesday are great grocery store days. I had to buy food late morning la...
by The Wizard
Wed Sep 26, 2018 4:45 am
Forum: Personal Finance (Not Investing)
Topic: Another Roth IRA conversion question
Replies: 3
Views: 662

Re: Another Roth IRA conversion question

Yes you can.
But the tax on the $2000 of earnings isn't that much. I'd be inclined to convert the whole $22k...
by The Wizard
Wed Sep 26, 2018 4:42 am
Forum: Investing - Help with Personal Investments
Topic: Helping a sibling
Replies: 26
Views: 3107

Re: Helping a sibling

Set up monthly progress and help meetings with them if they agree. Perhaps only a few will actually happen but that could be enough. Quiz them on things, don't just tell them: "So what new mutual fund company have you thought about going with?" If they answer Fidelity/Schwab/Vanguard, good If they a...
by The Wizard
Wed Sep 26, 2018 3:58 am
Forum: Personal Consumer Issues
Topic: Vacation without saving adequately?
Replies: 70
Views: 5127

Re: Vacation without saving adequately?

Recreational travel has been part of my lifestyle since day one, basically. I've been taking my full "vacation" allotment since start of employment at age 23. Paid vacation started at a miserly two weeks for the first few years so I too an extra week without pay from time to time. I did low budget t...
by The Wizard
Tue Sep 25, 2018 12:34 pm
Forum: Personal Consumer Issues
Topic: My Very First Smartphone [Samsung Galaxy S9+] — Please Critique This Plan
Replies: 123
Views: 6478

Re: My Very First Smartphone — Please Critique This Plan

That's not what I saw: http://i68.tinypic.com/1g38uh.jpg Bonaire is not a country. It is a "municipality" of The Netherlands. Wikipedia article on Bonaire will clarify this. And as we all know, even though a cellular provider services a given country, there will still be dead zones without a nearby...
by The Wizard
Tue Sep 25, 2018 12:22 pm
Forum: Personal Consumer Issues
Topic: My Very First Smartphone [Samsung Galaxy S9+] — Please Critique This Plan
Replies: 123
Views: 6478

Re: My Very First Smartphone — Please Critique This Plan

OnTrack wrote:
Mon Sep 24, 2018 1:09 pm
...I agree that a world map would be more useful.
I agree also, which is why I posted that Reddit link above to a map of all countries NOT having Google Fi functionality...