Search found 1206 matches

by smitcat
Wed Mar 28, 2018 7:16 am
Forum: Investing - Theory, News & General
Topic: KF Annual Expense Based Personal Finance Strategy
Replies: 149
Views: 6272

Re: KF Annual Expense Based Personal Finance Strategy

Folks, Simple step by step to FI. 0) Count your current portfolio size. This excludes your home equity. 1) Calculate your current annual expense. Let's call this as A. 2) Pick an FI portfolio size based on the age when you want to be FI. The FI should range from 25X to 50X of A. 3) Look at your ann...
by smitcat
Tue Mar 27, 2018 6:27 pm
Forum: Investing - Theory, News & General
Topic: KF Annual Expense Based Personal Finance Strategy
Replies: 149
Views: 6272

Re: KF Annual Expense Based Personal Finance Strategy

Thanks for the post. OK. If the goal is FI, after you get by the first line, how do you calculate when you reach FI? Assets times some whole number? Cash flow? If so, from what? RadAudit, Depending on the person's goal to achieve FI by a certain age, the portfolio size should be in the range of 25X...
by smitcat
Tue Mar 27, 2018 4:36 pm
Forum: Investing - Theory, News & General
Topic: KF Annual Expense Based Personal Finance Strategy
Replies: 149
Views: 6272

Re: KF Annual Expense Based Personal Finance Strategy

Thanks for the post. OK. If the goal is FI, after you get by the first line, how do you calculate when you reach FI? Assets times some whole number? Cash flow? If so, from what? RadAudit, Depending on the person's goal to achieve FI by a certain age, the portfolio size should be in the range of 25X...
by smitcat
Tue Mar 27, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 114
Views: 7485

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

BobK, I am a small business owner that comes to this site to get ideas and insights. I have no formal education or affiliation with any financial institutions or any products that they may offer. I have read a number of your posts now and they appear to come from some form or experience or career e...
by smitcat
Tue Mar 27, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 114
Views: 7485

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

The insurance companies don't think that rates will go up in the future. Instead they charge more (or offer less) becaue they think the future returns might be less. No. That is not the reason for the way insurance companies invest in bonds. They duration match bonds against annuity liabilities to ...
by smitcat
Tue Mar 27, 2018 9:58 am
Forum: Personal Finance (Not Investing)
Topic: My turn to ask - am I ready for retirement - can I say I'm FI?
Replies: 39
Views: 3723

Re: My turn to ask - am I ready for retirement - can I say I'm FI?

OP, Your number does not make any sense. Your current income is about 110K per year. Excluding saving and taxes, the annual expense should be much less than 90K. So, are you planning to spend in retirement more than your current annual expense? KlangFool It depends on whether the retirement expense...
by smitcat
Mon Mar 26, 2018 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: What Budget? Do you keep one?
Replies: 116
Views: 7074

Re: What Budget? Do you keep one?

Like many above, I do not have a budget but I do track expenses periodically. Try to save a certain amount certainly and calculate cash flow on a monthly basis. Expenses can vary month-to-month based on if took a trip recently, house projects, etc. Also have one child now but about to have a second...
by smitcat
Mon Mar 26, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: How old were you when you started spending your “principal”?
Replies: 90
Views: 8052

Re: How old were you when you started spending your “principal”?

I have never viewed 'money' or 'funds' as something that can bring you anything valuable unto themselves. The only purpose of 'money' is to trade it for experiences and assetts which bring you happines. With that in mind I hope that I will be spending a good deal of my money the balance of my life -...
by smitcat
Mon Mar 26, 2018 8:24 am
Forum: Personal Finance (Not Investing)
Topic: What Budget? Do you keep one?
Replies: 116
Views: 7074

Re: What Budget? Do you keep one?

This raises an important point. Any time the question of budgeting comes up, some posters say that they never budget because they save enough and so feel comfortable spending what is left post-savings. And that may be a method that works fine for them. But that does not mean it is an optimal method...
by smitcat
Mon Mar 26, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: What Budget? Do you keep one?
Replies: 116
Views: 7074

Re: What Budget? Do you keep one?

This raises an important point. Any time the question of budgeting comes up, some posters say that they never budget because they save enough and so feel comfortable spending what is left post-savings. And that may be a method that works fine for them. But that does not mean it is an optimal method...
by smitcat
Sun Mar 25, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: When to Take Social Security (again...)
Replies: 62
Views: 5135

Re: When to Take Social Security (again...)

Lots of discussion here, and elsewhere, including a whole bunch of calculators, life expectancy, etc regarding when to take SS. The general consensus is if you don't need to the money, wait as long as possible. I'm sure, from a strictly dollars and cents perspective, that is true. However, one thin...
by smitcat
Sat Mar 24, 2018 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: What Budget? Do you keep one?
Replies: 116
Views: 7074

Re: What Budget? Do you keep one?

I have found it much easier to track savings rather than spending or budgets. That's what I've done. I always save as much as I can. Obviously spend on needs and then splurge on whatever (this category changes all the time) - but always save something. This exercise came about a few years ago when ...
by smitcat
Thu Mar 22, 2018 4:52 pm
Forum: Investing - Theory, News & General
Topic: Working till retirement is not a great plan
Replies: 175
Views: 13482

Re: Working till retirement is not a great plan

OP, 1) I am fighting a losing battle trying to wake people up that they are overly optimistic that they will be fully-employed until retirement age. 2) In most cases, younger professional at the 30s chooses to be "House Poor" and overpay for their houses. When they hit the 40s and faces their first...
by smitcat
Thu Mar 22, 2018 4:26 pm
Forum: Investing - Theory, News & General
Topic: Working till retirement is not a great plan
Replies: 175
Views: 13482

Re: Working till retirement is not a great plan

OP, 1) I am fighting a losing battle trying to wake people up that they are overly optimistic that they will be fully-employed until retirement age. 2) In most cases, younger professional at the 30s chooses to be "House Poor" and overpay for their houses. When they hit the 40s and faces their first...
by smitcat
Thu Mar 22, 2018 2:02 pm
Forum: Investing - Theory, News & General
Topic: Working till retirement is not a great plan
Replies: 175
Views: 13482

Re: Working till retirement is not a great plan

I expect at some point (perhaps around 50, give or take a few years??) I will start to experience some sort of conscious or subconscious age discrimination in the work force. Like fellow board member Klangfool, I wouldn't bank on keeping ones current job and salary level till you reach a ripe old a...
by smitcat
Thu Mar 22, 2018 11:53 am
Forum: Investing - Theory, News & General
Topic: Medicare IRMAA
Replies: 19
Views: 1666

Re: Medicare IRMAA

Back to redeeming early option........or perhaps the do nothing option.............not sure where in the IRMAA spectrum you are but in the first tier the increase looks like $1600 or so for MFJ...............I guess compare that with the extra income you'd get keeping them.....maybe it won't be so ...
by smitcat
Thu Mar 22, 2018 9:18 am
Forum: Investing - Theory, News & General
Topic: Building a bridge to Social Security: When to start?
Replies: 34
Views: 3975

Re: Building a bridge to Social Security: When to start?

You do realize that somewhere around 15 years from now the SS Trust Fund is going to run dry. If your retirement is in the future, this is going to be during your current life expectancy. It is no longer somewhere in the indefinite future, most of us are going to experience it. One way or another, ...
by smitcat
Thu Mar 22, 2018 9:16 am
Forum: Investing - Theory, News & General
Topic: Building a bridge to Social Security: When to start?
Replies: 34
Views: 3975

Re: Building a bridge to Social Security: When to start?

You do realize that somewhere around 15 years from now the SS Trust Fund is going to run dry. If your retirement is in the future, this is going to be during your current life expectancy. It is no longer somewhere in the indefinite future, most of us are going to experience it. One way or another, ...
by smitcat
Thu Mar 22, 2018 9:10 am
Forum: Personal Finance (Not Investing)
Topic: What Budget? Do you keep one?
Replies: 116
Views: 7074

Re: What Budget? Do you keep one?

We have over 20 years of expenses tracked and that has led to a successful budgeting. It is quite easy and quick to do once you get used to it and have some history.
I could not imagine making some value added decisions about spending or savings if we did not know where the funds were going.
by smitcat
Wed Mar 21, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: Partial Roth Conversion & i-ORP data
Replies: 17
Views: 910

Re: Partial Roth Conversion & i-ORP data

How do you view your IRMAA tier costs? They figure to be negligible at the initial level but perhaps I am missing something. See Part B costs | Medicare.gov for one source. Thank you - so when MFJ its like 1% or less added on to the Roth conversion calculation comparison. Yes. Thus not a huge effec...
by smitcat
Wed Mar 21, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: Partial Roth Conversion & i-ORP data
Replies: 17
Views: 910

Re: Partial Roth Conversion & i-ORP data

How do you view your IRMAA tier costs? They figure to be negligible at the initial level but perhaps I am missing something. I view them as unnecessary for me because I can easily stay under the limit now that I know about it. I learned the hard way by stumbling just over the limit once (it's a cli...
by smitcat
Wed Mar 21, 2018 11:56 am
Forum: Investing - Theory, News & General
Topic: Partial Roth Conversion & i-ORP data
Replies: 17
Views: 910

Re: Partial Roth Conversion & i-ORP data

FiveK wrote:
Wed Mar 21, 2018 11:42 am
smitcat wrote:
Wed Mar 21, 2018 11:33 am
How do you view your IRMAA tier costs? They figure to be negligible at the initial level but perhaps I am missing something.
See Part B costs | Medicare.gov for one source.
Thank you - so when MFJ its like 1% or less added on to the Roth conversion calculation comparison.
by smitcat
Wed Mar 21, 2018 11:33 am
Forum: Investing - Theory, News & General
Topic: Partial Roth Conversion & i-ORP data
Replies: 17
Views: 910

Re: Partial Roth Conversion & i-ORP data

To me, the primary reason to do Roth conversions is to reduce the amount of money subject to RMDs at age 70.5. RMDs can push some people into a higher tax bracket and it appears I will be able to avoid that by reducing the size of my tax-deferred account before then. If you are not already aware, b...
by smitcat
Wed Mar 21, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: Partial Roth Conversion & i-ORP data
Replies: 17
Views: 910

Re: Partial Roth Conversion & i-ORP data

FWIW - once I have zeroed in on some preferred plans with the IORP long form I run them on the RPM calculator/spreadsheet for more details. I find the RPM requires much more time but it gives back much more detail and information. I found that the IORP took into account all the changes that were no...
by smitcat
Wed Mar 21, 2018 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Employee Fiduciary Update - 15 months in
Replies: 11
Views: 1026

Re: Employee Fiduciary Update - 15 months in

The largest disappointment with the EF 401K remains participation and employees leaving the plan. Then you don't have any issues with EF because this isn't in the scope of administering a 401k plan. That falls on the company and the advisor if you have one. Yes - I know. This is the second attempt ...
by smitcat
Wed Mar 21, 2018 7:26 am
Forum: Investing - Theory, News & General
Topic: Partial Roth Conversion & i-ORP data
Replies: 17
Views: 910

Re: Partial Roth Conversion & i-ORP data

First a BIG thanks to all the most knowledgeable folks on this forum. Your guidance is very appreciated. I'm considering doing a series of annual partial Roth conversions up to the the dollar limit of my current tax rate. I've read the other posts on this subject and have run the i-ORP calculations...
by smitcat
Wed Mar 21, 2018 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Employee Fiduciary Update - 15 months in
Replies: 11
Views: 1026

Re: Employee Fiduciary Update - 15 months in

Just for additional data: We have been with Employee Fiduciary a bit over 2-1/2 years now with a safe harbor plan that has 8 employees currently participating. - We have had prolems with our payroll company - We have had no problems with EF - Our deductions include the age related 'catch up' no prob...
by smitcat
Wed Mar 21, 2018 6:44 am
Forum: Personal Consumer Issues
Topic: Large life style creep that was completely worth it
Replies: 112
Views: 14255

Re: Large life style creep that was completely worth it

Yes - I agree that nothing scales perfectly in life. IMHO that is not a reason to resist upgrading or expanding for things you have a passion for in life. Oh, I didn't say one shouldn't upgrade. I was just saying one shouldn't fool themselves about diminishing returns. There is a curve for everythi...
by smitcat
Tue Mar 20, 2018 7:26 pm
Forum: Personal Consumer Issues
Topic: Large life style creep that was completely worth it
Replies: 112
Views: 14255

Re: Large life style creep that was completely worth it

For example, before buying the fancy new boat, we had a beater boat for 5 years to make sure we were using it. Now we use this one 3 times as much because it's 10 times better (and 10 times more expensive.) Just to mess with you.... and play devil's advocate. It's 10x more expensive, but only 3x-5x...
by smitcat
Tue Mar 20, 2018 7:23 pm
Forum: Personal Consumer Issues
Topic: Large life style creep that was completely worth it
Replies: 112
Views: 14255

Re: Large life style creep that was completely worth it

For example, before buying the fancy new boat, we had a beater boat for 5 years to make sure we were using it. Now we use this one 3 times as much because it's 10 times better (and 10 times more expensive.) Just to mess with you.... and play devil's advocate. It's 10x more expensive, but only 3x-5x...
by smitcat
Tue Mar 20, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Advance on Credit Card for $3K Car
Replies: 43
Views: 2492

Re: Cash Advance on Credit Car for $3K Car

I asked chevca several times to please treat me with more dignity and respect. They responded by defending their words and saying that I need to grow a thicker skin. I was, and am, hurt by their comments. They should respect my boundaries rather than defend the behavior that offended me in the firs...
by smitcat
Tue Mar 20, 2018 4:09 pm
Forum: Personal Consumer Issues
Topic: Large life style creep that was completely worth it
Replies: 112
Views: 14255

Re: Large life style creep that was completely worth it

For example, before buying the fancy new boat, we had a beater boat for 5 years to make sure we were using it. Now we use this one 3 times as much because it's 10 times better (and 10 times more expensive.) Just to mess with you.... and play devil's advocate. It's 10x more expensive, but only 3x-5x...
by smitcat
Tue Mar 20, 2018 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Retirement will cost the average American $828,000
Replies: 36
Views: 5879

Re: Retirement will cost the average American $828,000

Certainly click bait from the Fool, as some have already said the income is from all sources and per family.... This is the link.... https://www.newretirement.com/retirement/average-retirement-income-2017/ This is a cut and paste from the article.... Age of Household Median Income Mean Income Househ...
by smitcat
Tue Mar 20, 2018 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Cash Advance on Credit Card for $3K Car
Replies: 43
Views: 2492

Re: Cash Advance on Credit Car for $3K Car

I would say that this is the internet - IMHO when asking for help you will need a thicker skin. That is said with all due respect and wanting you to get the best answer that will help you. Please supply all information that can get an answer to your question. Do you only need a car for 9 months? Ha...
by smitcat
Tue Mar 20, 2018 8:40 am
Forum: Investing - Help with Personal Investments
Topic: 401K: Guaranteed 9.3% Return?
Replies: 43
Views: 5792

Re: 401K: Guaranteed 9.3% Return?

The decision is not where to live, but where to save. Moving to another state with high taxes, and then saving tax-deferred there, would be a wash. If you put money in a 401k in a tax-free state, then retire in CA, you have lost 9.3 % by saving that way. Yes, putting savings in a 401k saves you 9.3...
by smitcat
Tue Mar 20, 2018 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Cash Advance on Credit Card for $3K Car
Replies: 43
Views: 2492

Re: Cash Advance on Credit Car for $3K Car

I would say that this is the internet - IMHO when asking for help you will need a thicker skin. That is said with all due respect and wanting you to get the best answer that will help you. Please supply all information that can get an answer to your question. Do you only need a car for 9 months? Hav...
by smitcat
Mon Mar 19, 2018 9:47 am
Forum: Investing - Theory, News & General
Topic: Which is the hedge against higher future interest rates and inflation: the house or the mortgage?
Replies: 18
Views: 1627

Re: Which is the hedge against higher future interest rates and inflation: the house or the mortgage?

Which is the hedge against higher future interest rates and inflation: the house or the mortgage? People often say the mortgage is the hedge, but the house is at least a hedge against inflation. Do you need to keep the debt to keep the hedge? How does the answer to this question impact the decision...
by smitcat
Fri Mar 16, 2018 8:02 am
Forum: Personal Consumer Issues
Topic: Large life style creep that was completely worth it
Replies: 112
Views: 14255

Re: Large life style creep that was completely worth it

My spouse and I are fortunate with great jobs and humble upbringings and are in great shape financially. I've reduced down on work, and we've loosened the strings a decent amount on food, purchases (look for quality over quantity), and giving but we're considering if some big tickets items would be...
by smitcat
Thu Mar 15, 2018 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: 401K: Guaranteed 9.3% Return?
Replies: 43
Views: 5792

Re: 401K: Guaranteed 9.3% Return?

Remember, states without income tax have to pay the bills somehow. Check all of the other taxes before assuming you're going to make a 9.3% savings. I cannot speak for anyone else but in our case the "state" move we make will do the following: - save state taxes on the 401K conversions on original ...
by smitcat
Thu Mar 15, 2018 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Need Advice Rental Property -- Rent not covering PITI
Replies: 18
Views: 1636

Re: Need Advice Rental Property -- Rent not covering PITI

Apparently you are currently able to sell the home for more that it was purchased for - that can change for the worse fairly quickly. You are not present nor do you want to live in the home any time in the future. Your current $8,100 loss per years does not include maintenance and replacement item t...
by smitcat
Thu Mar 15, 2018 7:15 am
Forum: Investing - Help with Personal Investments
Topic: 401K: Guaranteed 9.3% Return?
Replies: 43
Views: 5792

Re: 401K: Guaranteed 9.3% Return?

I live in California, and I max 401ks for me and spouse. Every dollar that goes in would be taxed at 9.3% for California income tax purposes. To me this is a huge reason why I try to max 401k. If I were to choose to retire in a state without income tax, or even a lower bracket, it seems like that's...
by smitcat
Wed Mar 14, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: How much to withdraw from Roth vs. tax-deferred in retirement?
Replies: 26
Views: 1825

Re: How much to withdraw from Roth vs. tax-deferred in retirement?

I like to withdraw from tax-deferred in order to reduce the amount that will be subject to RMDs when that time comes. Occasionally, I'll take a bit from Roth if it keeps me under some limit I don't want to cross. I can't think of any reason to withdraw consistently from Roth when there is tax-defer...
by smitcat
Wed Mar 14, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: How much to withdraw from Roth vs. tax-deferred in retirement?
Replies: 26
Views: 1825

Re: How much to withdraw from Roth vs. tax-deferred in retirement?

I like to withdraw from tax-deferred in order to reduce the amount that will be subject to RMDs when that time comes. Occasionally, I'll take a bit from Roth if it keeps me under some limit I don't want to cross. I can't think of any reason to withdraw consistently from Roth when there is tax-defer...
by smitcat
Wed Mar 14, 2018 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Need advice re: Liberal Arts Colleges...
Replies: 235
Views: 12387

Re: Need advice re: Liberal Arts Colleges...

The parent shouldn't pay for their children's college education until their retirement/FI is fully funded. Sorry, KlangFool, this statement is completely opposite to what my parents did and what I am doing and planning to do. Shikoku, 1) Will the children fund their parent's retirement? 2) The kids...
by smitcat
Wed Mar 14, 2018 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Need advice re: Liberal Arts Colleges...
Replies: 235
Views: 12387

Re: Need advice re: Liberal Arts Colleges...

College costs and debt are unsustainable for the long term at current projected rates of increase, especially for those of us raising kids who are under 5. At some point we need to recognize the bubble and stop feeding the beast. As much as some here don't want to admit it, college ventures need to...
by smitcat
Wed Mar 14, 2018 8:39 am
Forum: Personal Finance (Not Investing)
Topic: How much to withdraw from Roth vs. tax-deferred in retirement?
Replies: 26
Views: 1825

Re: How much to withdraw from Roth vs. tax-deferred in retirement?

I have about 30% of my retirement savings in a Roth IRA and 70% mostly in tax-deferred 403-b with TIAA traditional earning around 3.5%. I'd like to know if there are any rules of thumb for how much I should be withdrawing from the Roth vs. the tax-deferred account for income. I'd always assumed tha...
by smitcat
Wed Mar 14, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Need advice re: Liberal Arts Colleges...
Replies: 235
Views: 12387

Re: Need advice re: Liberal Arts Colleges...

The parent shouldn't pay for their children's college education until their retirement/FI is fully funded. Sorry, KlangFool, this statement is completely opposite to what my parents did and what I am doing and planning to do. Shikoku, 1) Will the children fund their parent's retirement? 2) The kids...
by smitcat
Wed Mar 14, 2018 8:17 am
Forum: Personal Consumer Issues
Topic: Need Advice - Electric Hot Water Heater
Replies: 28
Views: 1808

Re: Need Advice - Electric Hot Water Heater

We just replaced our "shop" electric water heater with a Westinghouse (HTC brand) stainless steel tank from Home Depot. You can get the 40gal for $670, the 52 gal is $679. These have a lifetime tank warranty, NO anodes needed, 6 yrs parts. HD can install for a reasonable fee. It will take a dedicat...
by smitcat
Tue Mar 13, 2018 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Amount saved by age
Replies: 58
Views: 8208

Re: Amount saved by age

It is challenging to keep a high savings rate. It requires an engineered lifestyle, understanding exactly where the big costs are and how to minimize them so you don't have to worry about the little stuff. We don't coupon clip. Minimalism is enormously helpful in this efficient lifestyle, which we'...
by smitcat
Mon Mar 12, 2018 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Amount saved by age
Replies: 58
Views: 8208

Re: Amount saved by age

I really like the madfientist podcasts. There is a good one from kitces http://pca.st/hfNT. Minimize your major recurring costs to maximize your savings. Before making big purchases calculate cost, time saved, cost per hour of gained/lost free time, increased salary, cost per use. Houses, apartment...