Search found 4440 matches

by heyyou
Mon May 19, 2014 11:30 pm
Forum: Investing - Theory, News & General
Topic: Using Dr. Pfau's research
Replies: 27
Views: 3936

Using Dr. Pfau's research

http://wpfau.blogspot.com/p/articles-and-columns-note-for-links-to.html In different studies, Wade Pfau's research has shown the following: (1) A retirement portfolio of stocks plus SPIAs is superior to using stocks and bonds. (2) A variable allocation based on CAPE works better than a fixed allocation. (3) A rising equity glide path in retirement helps portfolio longevity. Is this one just a special case of #2? The question is how to implement any of those findings. A 50/50 allocation has been good enough, in the past, in the one, most successful country of the last century. That could be called the Bengen era. Pfau used 60 year periods in a study that combined accumulation with spending. He noted that the same high CAPE that helps a save...
by heyyou
Mon May 19, 2014 4:09 pm
Forum: Personal Investments
Topic: I have too much for retirement???
Replies: 35
Views: 6773

Re: I have too much for retirement???

At retirement, DW and I had trimmed our spending to half of our pay. In retirement, we are now living on more than that. Due to your current lifestyle, I doubt that your retirement spending will be noticeably less than now. Your health insurance will go up as you age. Paying the tax on Roth conversions feels like an increase in spending.
by heyyou
Mon May 19, 2014 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: retirement ideas seeking input
Replies: 17
Views: 2028

Re: retirement ideas seeking input

With your numbers, you will be fine, but expect some stress from worrying about your future. Your best financial investment is delaying the start of your SS, to age 70 if at all possible. The payment growth from delaying, and the inflation protection on that larger payment, will somewhat buffer the inflation losses on your pension. Consider any seasonal work to bolster your Social Security contributions, just to erase some of those years of zero wages. If you start now on expecting to delay the start of your SS, that will help you get past some of those early years of eligibility when you will be so tempted to grab the extra income. Start a garden, partly for the healthy food, but also for the activity. Volunteer at a variety of places unti...
by heyyou
Sun May 18, 2014 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Q: Paying all withholding tax at end of year
Replies: 19
Views: 2127

Q: Paying all withholding tax at end of year

If the IRS views all withholding(WH) tax payments as being paid throughout the year, asking your financial institution to make a single large WH payment to the IRS, due Jan 15, appears to be adequate. I see the variety of WH options on withdrawal forms. Note that estimated tax payments submitted by the taxpayer, serve the same purpose, but are due quarterly and have late penalties for each quarter. Is there a disadvantage to having the financial firm send the money? I'm not trying to keep the sum longer, so much as just simplifying how many payments are made, and I can guessimate my taxes after seeing my mid-December dividends and cap gains. The risk is late payment if I become incapacitated. I'll take that chance. Do state tax agencies fol...
by heyyou
Sat May 17, 2014 9:55 pm
Forum: Investing - Theory, News & General
Topic: A Simple Demonstration of Market Inefficiency
Replies: 18
Views: 3373

Re: A Simple Demonstration of Market Inefficiency

Now that we've dispensed with the efficient market hypothesis, we can get on to bigger and better things. :beer
I was wondering what the next "stir the pot" with glaring omissions topic will be.
by heyyou
Sat May 17, 2014 9:17 pm
Forum: Personal Investments
Topic: Annuity - Too Expensive to Ditch
Replies: 10
Views: 1750

Re: Annuity - Too Expensive to Ditch

This is way out of my league. Definition of 'Section 1035 Exchange' A tax-free exchange of an existing annuity contract for a new one. Investopedia explains 'Section 1035 Exchange' In order for the new contract to qualify as a Section 1035 Exchange, the policyholder must have exchanged his or her existing contract for an equivalent new contract. The annuitant or policyholder must also remain the same. Application of a check received for the old contract against the new contract does NOT qualify. I believe that Vanguard does offer this service, but I would wait for the surrender period to end, just to keep Merrill from tacking on even more exit fees. That gives the OP more time to learn about the procedure. There will likely be a fee to clos...
by heyyou
Sat May 17, 2014 8:33 pm
Forum: Personal Investments
Topic: It's Time to Scrape Some Cream Off the Top
Replies: 7
Views: 1792

Re: It's Time to Scrape Some Cream Off the Top

The decline/recovery cycle does not stop. After the next decline, there will be a recovery, than another decline. What are you going to do then? If you put too much into fixed income, your portfolio could be over exposed to inflation. Note that TIPS only cover the dollars invested in them, doing little for the rest of the portfolio. Some of my inflation protection is to own equities that will not keep up during the worst of the inflation, but will outgrow those inflation effects over longer periods. I will just have to tolerate the market fluctuations. If you are worried about nest egg size in the near future, is it wise to retire now? That does not appear to be a low stress retirement. Are you flexible on your spending (low fixed expenses)...
by heyyou
Fri May 16, 2014 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Replace Gas Guzzler with Toyota Prius Lease?
Replies: 24
Views: 3402

Re: Replace Gas Guzzler with Toyota Prius Lease?

Buy a used Prius. You will pay a premium that you will recover over time.

We bought a 2006 Prius recently, one owner, in a southwestern state that does not salt highways, always dealer serviced from reading the Carfax report on it, and DW loves it. She thought it would drive like my underpowered RAV4 and that is not the case. If it ever has battery problems, we will replace the battery instead of the car.
by heyyou
Fri May 16, 2014 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Consumption smoothing of retirement
Replies: 23
Views: 3089

Re: Consumption smoothing of retirement

@ crake

The comments addressed that situation. Your employer cannot easily replace you for 3 months a year with the exception of a school employee. If your preferred recreation is snow skiing, you would then have to travel to a different hemisphere on your long vacation.
by heyyou
Fri May 16, 2014 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Consumption smoothing of retirement
Replies: 23
Views: 3089

Re: Consumption smoothing of retirement

Yes, to what Raybo said.

If one needs to work all of his/her life, then work. If one wants to work all of their life, do so. If one chooses to work half of his life, then have leisure, that is my choice. I retired to live better than when I spent my time at work. Retirement has been joyous, not the reduced alternative to being unable to make more money.
by heyyou
Thu May 15, 2014 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Suggestions on used high mileage car?
Replies: 17
Views: 1867

Re: Suggestions on used high mileage car?

Consumer Reports has a list of good used cars in its annual car issue in April. If this year's issue doesn't, go to a library for last year's April issue.

I've had good luck buying older Toyota cars with about 10K miles per year, a RAV4 with 110K and a Prius with 91K, so they are old but not highly used.
by heyyou
Thu May 15, 2014 4:11 pm
Forum: Investing - Theory, News & General
Topic: commodities and multi-asset class portfolios
Replies: 65
Views: 6298

Re: commodities and multi-asset class portfolios

Seems to be a couple of more hurdles for retail investors before they can benefit from the known theory of commodities investing.

There is another step of looking at the funds available to retail investors. I cannot choose among specific commodities, only among specific commodities funds each with their own spectrum of expense ratios.

Are there commodities funds with passive management that is not disadvantageous (specific futures sell and buy dates is one example)?

PIMCO makes a hundred million a year in fees from their commodities fund, regardless of the commodities market and with economy of scale on its expenses. I wish that I could invest in that division of PIMCO as my exposure to commodities.
by heyyou
Thu May 15, 2014 3:12 pm
Forum: Investing - Theory, News & General
Topic: sequence of returns risk
Replies: 9
Views: 1271

Re: sequence of returns risk

It is a problem to ponder.
Agreed, but is any action necessary at this time? No, I believe not.

There are many risks that don't materialize, and you cannot beat all risks with planning and calculating. Expect to adapt.

A retiree can worry if he/she chooses to, but that is a choice not a necessity. People search for certainty about the future, but there hasn't ever been any certainty. The oracle said "a great army will fall" without being specific. Bengen said that 4% plus inflation would be a guideline using historical data, not a guaranteed budget. Others have polished some of the rough spots. Expect to adapt.
by heyyou
Thu May 15, 2014 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4288
Views: 1082159

Re: Share your networth progression

Didn't finish college before or after military service. Started working at a blue collar job at a business that became a Fortune 500 company. Saved well but invested greedily in a limited partnership that failed, then lost $20K in an overpriced condo.

Zero financial assets in 1982. Retired in 2005 at age 55 from the same job with $1000K of financial assets. Annual income did not ever reach $70K, but was in the 50s and 60s for many years. 2013 statements show $1200K in the markets, no mortgage on newer, retirement sized home, an annual $41K no-COLA pension, and cheap retiree healthcare from former employer. We are spending more that when we were working, and feel grateful about our lives, every day.
by heyyou
Mon May 12, 2014 12:46 pm
Forum: Investing - Theory, News & General
Topic: "Fortune favors the bold" (or does it?)
Replies: 31
Views: 3934

Re: "Fortune favors the bold" (or does it?)

I was watching a documentary
Where do you mostly hear about success stories? The source is the media who need revenue to stay in business. Their product needs to be entertaining, and it is. I prefer to get my financial advice here than from the media.
by heyyou
Sat May 10, 2014 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: what is the hardest financial decision?
Replies: 55
Views: 6950

Re: what is the hardest financial decision?

because it's a continual decision, a constant striving to find the right balance between saving and spending
especially when so many other people are demonstrating the superiority of their own by spending and spending and spending.
In retirement, continuing to Live Within Your Means is a remaining vestige of your working years. No commute, no job, no boss, no paycheck, but LWYM endures.
by heyyou
Fri May 09, 2014 7:20 pm
Forum: Personal Consumer Issues
Topic: Tillers & Cultivators
Replies: 21
Views: 3042

Re: Tillers & Cultivators

Lots of options. I'll give an unconventional one...

I dislike the maintenance hassle of small gasoline engines. Especially when they're not used very often it seems like they present more problems than they're worth.
This has been aggravated by the ethanol in the gasoline. If the OP is handy enough to do carb overhauls, the used tool market is fine.

My experience on an acre, is that renting tools is inconvenient, but is more cost effective than buying. For the OP's specific situation, he can rent a more powerful one for initial use, then a smaller one as needed. I recently invested in a hundred foot, 10 gauge electric cord for near a hundred dollars, intending to avoid further purchases of gas powered yard tools.
by heyyou
Fri May 09, 2014 6:42 pm
Forum: Investing - Theory, News & General
Topic: CAPE:cyclically adjusted price earnings ratio
Replies: 12
Views: 2870

Re: CAPE:cyclically adjusted price earnings ratio

The markets have a long history of boom and bust, but somehow the growth has been more than the declines.
Consider what is on the far side of the next major market drop, the next market increase.
by heyyou
Wed May 07, 2014 10:15 pm
Forum: Investing - Theory, News & General
Topic: Tagging Market Performance to Withdrawals
Replies: 17
Views: 1459

Re: Tagging Market Performance to Withdrawals

A Wall Street Journal RetireMentor, Henry Hebeler, uses both the 4%+inflation withdrawal(WD) and the age-based withdrawal based on the IRS's RMD table, then divides the sum by two. Consider choosing two other methods and halving the sum if they combine age-based with portfolio size considerations. You can smooth the fluctuations by using a 3 or 5 year average return, instead of just last year's number. Note that annual returns and portfolio size are two views of the same picture. Also, a low WD rate is very safe and leaves too much for the heirs, so it is a tightrope walk between too little and too much spending. 4% of the initial portfolio plus last year's inflation tests portfolio longevity due to no consideration of current returns or re...
by heyyou
Wed May 07, 2014 12:50 pm
Forum: Investing - Theory, News & General
Topic: Is equity diversification over-hyped?
Replies: 45
Views: 5154

Re: Is equity diversification over-hyped?

With the same sectors in both the Dow and the S&P500, but with only 1-3 companies per sector in the Dow, but several in every sector of the 500, that works with mega-caps. Try the same comparison with small caps and you will see more risks. Your sample was the exception to your general question.

Equity diversification matters but not as much as savings rate, stock/bond ratio, staying the course, etc. so I believe that equity diversification is not over-hyped, it is just less important than many other investing considerations.
by heyyou
Wed May 07, 2014 11:54 am
Forum: Investing - Theory, News & General
Topic: Waiting for a Bear market to retire
Replies: 18
Views: 2263

Re: Waiting for a Bear market to retire

Seconding the suggestions of a small SPIA, maybe limited term, plus some dedicated cash to establish a multi-year period of no further withdrawals from your stock and bond portfolio for the start of your retirement. One BH poster bought a limited term annuity to smooth his income for the years from retirement day to first SS check. Those decisions remove some risk, even if they will not remove your perception of the risks.

As a late 2005 retiree, I've visited that bear market.
by heyyou
Tue May 06, 2014 11:52 am
Forum: Investing - Theory, News & General
Topic: One more article questioning the role of commodities
Replies: 3
Views: 743

Re: One more article questioning the role of commodities

I wish that I could invest more than market share, specifically in all of those firms that receive steady fees for speculating in commodities futures, instead of having direct exposure to the speculating of one of those funds. PIMCO has received $100 million in fees to operate PCRIX while my shares there have been worth noticeably less than the purchase price for many years. I'm starting to dread equity booms due to my sensitivity to recency. To feed the fire, the article did not question the role of commodities, it advocated for investing in collateralized commodity funds (CCF). Note that some of the data was for long periods when there were no large funds investing in the futures markets. Commodities investing has been made into securitie...
by heyyou
Tue May 06, 2014 10:40 am
Forum: Personal Finance (Not Investing)
Topic: "Retiring" early
Replies: 18
Views: 3899

Re: "Retiring" early

He has choices. He can live within his means in any area, high cost or low, or alternate between both, with emphasis on the living within his means. I would expect my annual income to vary over time, so I would monitor my spending rate regardless of the sources of income, instead of consistently spending all of the dividends and interest every year. My spending might match that, but it would be an annual decision.

At one time, I wanted to travel slow in various parts of the country, spending a year to experience all four seasons in each destination.
by heyyou
Tue May 06, 2014 9:55 am
Forum: Personal Consumer Issues
Topic: A Short Survey for Retirees
Replies: 75
Views: 8732

Re: A Short Survey for Retirees

exit a toxic environment
Why does the guy beat his head against the wall? Because it feels so good when he stops.
every joke has a bit of the truth in it
by heyyou
Mon May 05, 2014 10:35 am
Forum: Investing - Theory, News & General
Topic: Delay Social Security to age 70 and Spend more money at 62
Replies: 203
Views: 75047

Re: Delay Social Security to age 70 and Spend more money at

As usual, the subtlety of deferred income isn't clear to some, and doesn't apply to those who can't afford to wait, and those for whom the increase is inconsequential. So the rest of us who are open to alternatives benefit. In my life, delayed gratification has been an astonishing investment. In this case, it is only income shifting without any delay.
by heyyou
Sun May 04, 2014 2:59 pm
Forum: Personal Consumer Issues
Topic: Woodburning stove insert recommendations
Replies: 8
Views: 1107

Re: Woodburning stove insert recommendations

We preferred the lower maintenance of pellets when we were both working weekdays. In retirement, wood is a lot of effort, but you could always change out the insert from wood when you are ready for pellets.
by heyyou
Sun May 04, 2014 2:30 pm
Forum: Personal Investments
Topic: Help to make decision take monthly annuity or lump sum
Replies: 27
Views: 3012

Re: Help to make decision take monthly annuity or lump sum

Take the annuity, delay collecting Social Security until the age of 70, and live happily ever after. Wise advice. Take the buyout. You can stretch the extra pay since the commuting expenses will end. During that time, find out the proposed numbers on your widow Social Security, and use that to delay your own SS to age 70. Take the regular annuity because it suits you. Any other choice adds risk, uncertainty, and stress. You can inflation-adjust a fixed annuity by reinvesting a portion of the distribution each year. And regardless of the behavior of the stock market, you will never run out of money. they say you cannot lose money in it Avoid the hybrid annuity. The complexity is designed to hide the higher fees paid to the provider and its ...
by heyyou
Sat May 03, 2014 8:18 am
Forum: Personal Consumer Issues
Topic: A Short Survey for Retirees
Replies: 75
Views: 8732

Re: A Short Survey for Retirees

One pleasant surprise was living so well in retirement, but our post-work budget is slightly larger than when we were saving for retirement. We feel wealthy these days, just because we don't have paychecks but seem to have everything we want without going to jobs. What an amazing concept! LBOM for all those years has given us ten years of early retirement and we are quite happy living on our national median income in a LCOL area. Another surprise was fitness without gym time. My hobby keeps me in better condition than when I was doing somewhat physical work but not watching my diet. I thought that retirees could only dabble at backpacking, but after that thousand mile year, having more time is better than being younger with only weekends of...
by heyyou
Thu May 01, 2014 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Trouble calculating portfolio # because of income change
Replies: 2
Views: 625

Re: Trouble calculating portfolio # because of income change

One poster purchased an annuity to cover his income for the specific period of retirement until the start of SS. Even if you don't buy the annuity, there is a number to subtract from your assets.

There will always be risks, regardless of how many ways you calculate your future needs. The alternative is terrible, you have to keep working!
by heyyou
Thu May 01, 2014 9:05 pm
Forum: Personal Investments
Topic: Roth conversion strategy
Replies: 24
Views: 2655

Re: Roth conversion strategy

Multiple annual Roth conversions are not an all or nothing decision. Try it to the top of the 15% bracket for a year or two, or as Peter Foley mentioned, choose how much you are willing to pay in taxes, then convert to that level. Since no one knows future returns, there is less risk if you convert some while expecting a clearer view at a later date.

Scott Burns, a personal finance columnist, has written about the higher SS taxation for middle income retirees with pension, SS, and RMDs. He calls it the "torpedo tax."
by heyyou
Thu May 01, 2014 1:30 pm
Forum: Personal Consumer Issues
Topic: [avoiding utility payments]
Replies: 29
Views: 3725

Re: [avoiding utility payments]

In an arid Southwestern state, we moved outside the town limits when the town forbade watering gardens in order to have more newly built houses during the RE boom. This was a blessing in disguise, as we now have much larger, nicer gardens. We shopped for our land by asking the local water well driller about which areas had better wells. Our well cost about $3K, as did the septic system. Within the town limits, tapping into the town's water and sewer systems was double that cost. All of our grey water is used to water trees, so the septic is for toilet waste only. We do not have a garbage disposal in the kitchen sink because we want to compost our vegetable wastes, and we do not want grease going into the septic. It is all simple, but not th...
by heyyou
Thu May 01, 2014 12:51 pm
Forum: Personal Investments
Topic: Roth conversion strategy
Replies: 24
Views: 2655

Re: Roth conversion strategy

Paying taxes sooner than necessary is inconceivable to some. For better tax advice, ask during the slow season, not in late March or early April.

James Lange suggests making multiple Roth conversions during January, each for the maximum amount, then re-characterizing all but the most successful one just before your tax filing date the following year. That level of creative interpretation of the rules, is not typical of accounting.
by heyyou
Thu May 01, 2014 12:36 pm
Forum: Investing - Theory, News & General
Topic: hard to identify the future winners
Replies: 2
Views: 618

Re: hard to identify the future winners

There seems to be a wide moat between the marketed illusion of actively managed investments and historical data.

Thank you Jack Bogle for being the Copernicus and Galileo of the investment industry, and thank you Larry for your well written articles.
by heyyou
Thu May 01, 2014 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Are my retirement dreams a mirage?
Replies: 39
Views: 5223

Re: Are my retirement dreams a mirage?

In retirement you can be whoever you want to be, not who you needed to be in order to make a living. If you don't find that person within, perhaps retirement doesn't suit you. My employer's newsletter told of a 50 year employee who wasn't planning to leave. You can go back to work, but probably not at your former job, status, or wages. If those matter greatly to you, then perhaps you should not retire. Besides thinking about retirement, consider what your job means to you. My stressful job at mega-corp was mostly a source of income. So far, retirement has been the best years of my life, but I've found engaging, meaningful retirement activities. This was posted by Peter Foley: Happiness is a fairly universal goal. Richard Nelson Bolles exami...
by heyyou
Wed Apr 30, 2014 11:36 pm
Forum: Investing - Theory, News & General
Topic: Blog: Harry Browne's Permanent Portfolio
Replies: 79
Views: 22937

Re: Blog: Harry Browne's Permanent Portfolio

I've got two names for you, Craig. Bunky. Hunt. I got whipsawed by his silver manipulations. Not pretty. And I had a BIG paper loss, a small real loss. You are showing your age if you remember the Hunt brothers. When was that, late 1970s, early 1980s? Consider that the second part of the whipsawing was when the silver market corrected from the manipulation. For some it was just boom and bust, regardless of the artificial source of the boom. Diversified, long term investors who rebalanced, were burned less than the speculators, and learning about market crashes early gave you plenty of time to recover from your youthful follies. I don't wish for market losses for anyone, but you sure learn more in a decline than during the boom that precede...
by heyyou
Wed Apr 30, 2014 10:04 am
Forum: Investing - Theory, News & General
Topic: Fama/French Factors: "A Come-to-Buffet Moment" (from M*)
Replies: 74
Views: 9424

Re: Fama/French Factors: "A Come-to-Buffet Moment" (from M*)

Should make for an interesting discussion. May as well move along as there is nothing new here, same debate, same hardened positions, just a couple of new labels to stir with, as though those labels would forecast what the market will do in the future. That is hidden in the arguments, our greed for choosing which will do better going forward. In the near future, the Ford/Chevy debate will be having a centennial, but our ancestors probably argued about which breeds of horses were better. It saddens me to see the he-said, she-said and the "mine is better than yours" responses here instead of broad acceptance of "many roads to Dublin." Choose the one that suits you, knowing that something different may suit others.
by heyyou
Mon Apr 28, 2014 7:43 am
Forum: Investing - Theory, News & General
Topic: Implications of Large Bond allocations of Baby Boomers
Replies: 25
Views: 7596

Re: Implications of Large Bond allocations of Baby Boomers

Something about recognizing what you can control and ignoring what you can't control. Retirement has been great because I can see that worrying about a hypothetical future serves no purpose. I expect to adapt to whichever future shows up, so far that has worked well.
by heyyou
Sun Apr 27, 2014 10:58 am
Forum: Investing - Theory, News & General
Topic: POLL: the WORST financial advice you've given/received?
Replies: 61
Views: 18274

Re: POLL: the WORST financial advice you've given/received?

About 1980, I ask my tax prep guy for an advisor suggestion. The new advisor found a limited partnership leveraged real estate deal for me, and I made $6K on $10K in 18 months. I then put all of my savings into the next one, about $50K. It not only failed, but to add insult to injury, I had to pay back taxes on previous deductions during the life of the partnership. Recapture is a big surprise on a tax return when your withholding has always covered your liability in the past. Since then, I haven't been attracted to investments where the general partner is highly compensated from the initial investment. Now, I'm so grateful that I learned that lesson by age 33, instead of in my fifties or sixties. Next, my tax prep guy became an investment ...
by heyyou
Fri Apr 25, 2014 5:44 pm
Forum: Investing - Theory, News & General
Topic: Higher Risk, Higher Rewards than a Stock Index Fund
Replies: 50
Views: 13954

Re: Higher Risk, Higher Rewards than a Stock Index Fund

I wouldn't know the ETF tickers (altruistfa.com recommends specific funds in categories) but combine more of what has already been mentioned. Consider emerging markets small, or EM value. I have 5% in each of those. When you are looking beyond what is mainstream at Bogleheads (BHs), the fund expenses will be much higher, but that is just another risk that the owners of those funds have to tolerate. Another example of more exposure is 10% of portfolio instead of 10% of equity slice. I apologize in advance for my lack of tact. If there was a better path, it would be known and used here. There isn't an HOV lane parallel to the BH route. My opinion is that you are greedy for more than what the broad market will deliver. You could save more in o...
by heyyou
Thu Apr 24, 2014 12:22 am
Forum: Personal Finance (Not Investing)
Topic: Some sense of having enough
Replies: 13
Views: 3003

Re: Some sense of having enough

This was posted here a while back by Peter Foley. Happiness is a fairly universal goal. Richard Nelson Bolles examined happiness in retirement and describe "levels" of happiness -pleasure, engagement and meaning - based on the scientific studies of Martin Seligman. Paraphrasing from the book: Pleasure is the immediate positive reinforcement you get from doing something you like. Its duration is usually short, lasting as long as the activity itself. Enjoying a good meal, tasting a fine wine or hitting a good golf shot, are three examples of positive reinforcement resulting in very short term pleasure. Engagement is the happiness that results from losing yourself in something you are doing. The positive reinforcement often does not ...
by heyyou
Thu Apr 24, 2014 12:06 am
Forum: Personal Finance (Not Investing)
Topic: The Power of Zero (0% tax bracket in retirement) book
Replies: 22
Views: 8141

Re: The Power of Zero (0% tax bracket in retirement) book

Warning: Geezer with anecdote.

A remark about some tax shelters was "Some people with good incomes are so tax averse that they are paying a dollar for 50 cents of tax relief."
by heyyou
Wed Apr 23, 2014 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Some sense of having enough
Replies: 13
Views: 3003

Some sense of having enough

After 8.5 years of retirement and a strong bull market, I'm starting to feel confident about my retirement spending plan. Is there is a giddy phase early in retirement? The astonishment is gone from living without job income. How are you feeling about your retirement assets and spending?

I'm susceptible to most behavioral biases so this may be another bout of recency.
by heyyou
Wed Apr 23, 2014 10:41 am
Forum: Investing - Theory, News & General
Topic: Please explain a 3% SWR to me
Replies: 92
Views: 29181

Re: Please explain a 3% SWR to me

On why 3% would only last 30 years, look at the cumulative inflation from 1970 t0 1990 to see where the compounded earnings went. As mentioned, that 3% was boosted by inflation for each year of retirement. The final withdrawals were several multiples of the initial amounts.
by heyyou
Wed Apr 23, 2014 10:15 am
Forum: Personal Investments
Topic: Compensating for inflation with a fixed pension?
Replies: 10
Views: 1668

Re: Compensating for inflation with a fixed pension?

What he said directly above. Both progressive steps and a flexible attitude about spending is all that is possible. As much as I would like to find definite inflation protection, there isn't any, nor any certainty on anything else. In spite of all of our technological accomplishments, the future is still uncertain.
by heyyou
Wed Apr 23, 2014 10:06 am
Forum: Personal Consumer Issues
Topic: deleted
Replies: 89
Views: 23820

Re: Where would you retire, if $ were no object?

Interpreting the original post to be one location, for me, it would be Big Island of Hawaii because you can drive to any altitude, any day for variety, but there is no real winter, ever.

I'm not there because DW is not leaving her gardening or her friends in this community.
by heyyou
Wed Apr 23, 2014 1:46 am
Forum: Personal Investments
Topic: Compensating for inflation with a fixed pension?
Replies: 10
Views: 1668

Re: Compensating for inflation with a fixed pension?

TIPS only buffer the inflation on the dollars that are invested in them. You are looking for a hedge that doesn't exist, one that inflates faster than the inflation rate.

Sad to say, but extra savings does buffer inflation. If you have enough money, you can afford all of the same items, even if the price has gone up.

Not in the short term, but over long periods, equities do outgrow inflation, but not on the same schedule, so that isn't a hedge, it is just a higher performing, unrelated asset.
by heyyou
Fri Apr 18, 2014 4:07 pm
Forum: Personal Consumer Issues
Topic: Help me find a good slow cooker
Replies: 29
Views: 4492

Re: Help me find a good slow cooker

Zojhirushi.

I'm not familiar with their slow cooker, but I have nothing but praise for their rice cooker, and I have the sense that that kind of quality reflects a company's commitment.
Same here.

My only concern is even on low it cooks extremely hot.

The one I have works but maybe yours is defective. They are so cheap just toss it and buy another.
Very minor suggestion, keep the old one until you determine that the new one works better.
by heyyou
Fri Apr 18, 2014 12:25 pm
Forum: Investing - Theory, News & General
Topic: Otar - Tactical Asset Allocation
Replies: 7
Views: 1301

Re: Otar - Tactical Asset Allocation

Many retirees have larger combined tax sheltered accounts than taxable. Otar's general advice has to be considered in the light of your specific tax situation, and the sleep well test.

If someone has been doing tactical allocation for thirty years prior to retirement, he might be a candidate for continuing it because his investment horizon is another 30+ years.
by heyyou
Fri Apr 18, 2014 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: SS Strategy Metric
Replies: 55
Views: 6611

Re: SS Strategy Metric

With ancestral longevity, a no-COLA pension, and a wife 9.5 years younger who did not earn near as much, I will start at age 70. Not a difficult decision with my history of benefiting from delayed gratification.
by heyyou
Fri Apr 18, 2014 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Resort Property as Primary Residence
Replies: 16
Views: 2160

Re: Resort Property as Primary Residence

Realtors track days on market (DOM) of their listings, so ask for those on both previous sales and expired listings. Analyze the home owners association (HOA) books for trends on income and costs, and their ratio to the reserve fund. Talk to other residents besides your in-laws about living there. Do the same for similar properties to see how they are doing, as your future troubles may show up first in weaker competitors. Contact some of the rental owners to see if they are renting because they can't sell. How far away are restaurants other than the country club, how far is the grocery store, pharmacy, beauty and barber shops, and ATM? Can you get there without driving your own car? As a visitor, those matter less than to full timers. Lease...