Bogleheads.org

OP: Not much value I can add except to say that I am living with a similar situation of having a smallish (~15%) of my portfolio being charged a 90bp AUM fee by a FA and (possibly even more importantly) not having the authority to decide how that 15% is being invested. And I know the challenging nature of deciding to cut out the FA. I'm hoping my response furthers this conversation and doesn't hijack it. Others have indicated that there is a role for FAs other than investment-picking. Modeling, planning, strategizing, and a balance to the irrational and emotion-based decision making tendencies. I think I get the emotional stuff (stocks are on sale! Things have fallen so much I better get out now before I lose everything! NewTechCo just ros...

smartspider1106 wrote: ↑Thu Sep 12, 2024 9:15 am I’ve been trying to find a CFP to help me with a few questions around tax efficiency. Spoke to someone a friend recommended and the guy is recommending a LIRP. Do I run the other way? Say no thanks but maybe there are other things you can help with?

Also, can I just figure this out myself? I am really having trouble finding someone who seems to be truly value additive for the fees they charge.

Thanks

No, just no to the fancy stuff.

The basic three fund portfolio works well. It got me to retirement. There really is no magic to investing. Time in the market + investing in basic broad based mutual funds/ETFs with at least 15% contributions is a good plan.

Don’t talk to financial sales people.

glitchy wrote: ↑Mon Sep 09, 2024 4:58 pm Have you asked Fidelity? It seems like everyone but me has gotten a bonus offer on rolling a 401(k) into an IRA, but when I did it, even with recent mentions here of people getting the bonus, everybody denied all knowledge.

SoFi is still offering a flat 1% on 401(k) rollovers (two year hold) but last I saw you need to get it started by 9/15, so if you want it don't faff around: https://www.sofi.com/invest/capitalizeonepercent/

I have a 401k at Fidelity as well as brokerage/IRAs. I keep getting calls from fidelity trying to persuade me to roll over my 401k. No one has dangled a bonus for me to do so.

Op,

I am sorry you are going through divorce.

Letting go of the house along with your marriage is much simpler and financially secure for you. Taking on a loan while losing your job seems like a no go.. A simpler life seems like a better choice. Sell house, split proceeds and you have money to live on while you search for a new job. Rent while you look for work and perhaps a few more years more to get yourself set up.

Wishing you well.

Yes, Invest today. Ypu were fully invested before you rolled your 401k into IRA. Now do the necessary now, today.

I agree this is a very logical article. Easy to read and understand.

My problem is that I don’t think a TIPs ladder is guaranteed safe investment given the Trillions in U.S. federal debt and there is always the possibility that an SPIA provider goes bankrupt.

checkersmaster wrote: ↑Wed Sep 11, 2024 3:11 pm This is my problem -- I'm consistently in the highest tax bracket for IRS and second to highest in my state (will not reach highest state bracket with W2 salary alone, but could reach it with inheritance distributions).

I was speculating that there may be changes at work that would reduce my income, but it has only increased over the years, so I have always deferred the distributions. Now I only have 5 years left, so I have to think proactively.

I suppose what I could do is take a distribution that is just enough to keep me from entering the top state tax bracket, knowing that I will always be in the highest IRS bracket.

I think in 2025 you need to start taking out RMD every YEAR.

Crab cakes, braised celery. Last night.

Wiggums wrote: ↑Sat Sep 07, 2024 2:07 pm Not mentioned on here a lot, but FI Calc is a calculator that utilizes backtesting to evaluate different withdrawal strategies.

https://ficalc.app/

Very nice.

4nursebee wrote: ↑Wed Sep 11, 2024 2:31 pm

Dottie57 wrote: ↑Wed Sep 11, 2024 12:24 pm An update:

I just drove home with 4 new Michelin CroosClimate2 tires on my car from Discount tires. It was fast and easy! They checked my alignment - all is fine.
Much less thannthe dealership for same.

Very happy to be driving on good tires. I’ll see how they wear


Thanks to All who commented.

I was reading over this topic and was going to suggest this chain. If I recall they will repair/plug all tires for free, even those you purchased elsewhere. Maybe free rotation. They have treated me well several times.

Yes, this is another selling point. I was very happy when driving home.

Hi, DH’s SSN benefit options are 62- $2705, 67- $3842 or 70 - $4761. He would like to collect $2705 at 62. I’m not sure when to collect; I’m 59 and relatively healthy. What will my spousal benefits at 62, 67 and 70 based on DH’s benefits? Thank you. Just Note: For me, I decided Cash flow (greater amount monthly $) For a shorter period of time (8 years) is beneficial for me. If my portfolio runs out or there is a huge crash for more than 18-24 months, I will be better off with a larger pension like income from the government. I can pay for retirement from my own funds until 70. It is when I am older that I worry. Another note: I don’t care about getting the maximum amount of money from government. I do want to have max guaranteed income lat...

mhadden1 wrote: ↑Wed Sep 11, 2024 12:18 pm

friluftsliv-roy wrote: ↑Wed Sep 11, 2024 12:09 pm I am hoping to be in a zero percent capital gains tax rate in about 10 years - a seven year window between age 60 and 67 when I can realize most of my capital gains and pay very little capital gains tax.

I am doing this, while I have a lot of MFJ room for 0% CG. It's fun to pay very little federal income tax. It's so much fun it has kind of derailed me from Roth conversions in the 12% bracket.

Aversion to paying tax may be leading you the wrong way. How will you feel if they have lost 50% of today’s value when you wamt/need to sell.

An update:

I just drove home with 4 new Michelin CroosClimate2 tires on my car from Discount tires. It was fast and easy! They checked my alignment - all is fine.
Much less thannthe dealership for same.

Very happy to be driving on good tires. I’ll see how they wear


Thanks to All who commented.

I just turned 65 and will collect my first social security check this month. Delaying starting Social Security is in effect buying an inflation adjusted SPIA which has much better terms then anything you can buy from an insurance company. I would have a hard time thinking of any situation where starting SS before 70 and buying a SPIA would make sense except maybe if you have a spouse who would get a larger SS benefit but I did not play with the numbers for that. Check this web site to see when it suggests that you and any spouse should each start SS. https://opensocialsecurity.com/ The rules have changed but I am pretty sure that there are ways to basically "un do" starting SS if that makes sense. Any supposed financial advisor p...

Annette, Your portfolio worth is the key to retirement. It is not a networth but portfolio that can be easily turned into cash for living expenses. So you have 1.6mm portfolio. Keep adding to it to get to 2 or 2.5 mm portfolio. Funding my retirement from 61 to 70 has not been easy but doable. My numbers are close to yours. 2mm including home and home. 1.5+mm for portfolio.. Don't forget the $70K (adjusted for inflation I would think) Annette is getting from pension plus SS. That would be the equivalent of about $2 million in savings I would assume, at 3.5% per year. You are right that Annette has more SS /pension income. SS for me will over 50k or so at age 70 says SSA.. i am older too which means I most probably have fewer years in retire...

wunwun1 wrote: ↑Tue Sep 10, 2024 1:35 pm

bsteiner wrote: ↑Tue Sep 10, 2024 1:22 pm Yes, but it’s nevertheless generally not a good idea to name beneficiaries for taxable accounts (assets other than life insurance and retirement benefits), for many reasons.

Not a good idea? I am confused.

What happens if your beneficiaries die before you?

I am hoping my brother who is younger will inherit from me. But I do have a will too that defines beneficiaries. If the account beneficiaries are no longer alive.

capran wrote: ↑Tue Sep 10, 2024 12:32 pm

toddthebod wrote: ↑Tue Sep 10, 2024 12:19 pm

Myopic squirrel wrote: ↑Tue Sep 10, 2024 12:18 pm My Vanguard brokerage account is in my name only, with my wife as the primary beneficiary and our son as the secondary beneficiary. And same with my IRA & Roth. Does a named beneficiary keep these assets out of probate? Am I correct if it were a joint account with right of survivorship and I predeceased my wife, the assets would automatically transfer to her outside of probate? Thank you in advance.

Yes, a named beneficiary on a taxable account will bypass probate.

Am I assuming correctly that an IRA or a Roth would not bypass probate?

IRA’s with beneficiaries named do not go through probate at least in Minnesota.
401k’s should be the same at least in MN.

ssel wrote: ↑Tue Sep 10, 2024 12:33 am

anglophile wrote: ↑Mon Sep 09, 2024 9:02 pm Oh dear...OK, thanks for explaining all that in terms I can understand. I can see why it makes so much sense to wait until I am 67.

67... or beyond.

Here's another way to look at it. If you start benefits the first month after age 62, your benefit will be around 49% of your maximum (age 70) benefit. If you start at FRA age 67, it will be around 81% of your maximum.

Benefits increase steadily, if not quite smoothly, from age 62 all the way up to 70. Looking at just that one measure, age 67 isn't a terribly special rung of the ladder.

I am waiting until age 70 to receive SS.

If I applied today at age 67 6 months I would get 41.3k. At 70 - 51.5. Big difference.

Search the Toyota forum for suggestions Personally, I prefer Michelin for our SUV as was recommended by Lexus forum members. We purchase our tires at Sam’s. I’ve heard good things about Costco. We got in almost unbelievable 95,000 miles on our last set of Michelin. I would generally expect for our tires around 60,000 miles. As for alignment, a mechanic can check with a wheel alignment device. Six years on your tires – – I’m wondering if they’re showing any tire rot? Tire rot was mentioned as a possibility but not actually noted as found. You can Google tire rot. Wouldn’t surprise me if there was some on tires that are six years old and that low mileage, and being in Minnesota, means they may have been sitting around a lot while wet. Underg...

HomeStretch wrote: ↑Mon Sep 09, 2024 5:07 pm Without knowing any details, it’s hard to say whether or not your concerns are justified. But if your mom is a legally competent adult, ultimately it’s up to her as to how she spends her $. Perhaps you can discuss buying an annuity (SPIA) with a portion of her net portfolio which will give her lifetime income.

I would spin it as getting more monthly money until she leaves the planet.

I am 45 years old, have not debts have a stable job and from my salary I save 1000€ each month for my retirement into my portfolio consisting of 60% stocks (Vanguard All-World-ETF) 25% Bonds 15% Gold. Now I am thinking whether this is reasonable. If I would not save 1000€ each month, I would not need my savings for the next 20 years. For a timeframe of 20 years stocks should always beet all other assets. So why not go 100% into an all world etf? Would this not be the logic thing to do? [Title edited for clarity. Also moved topic to the “Personal Investments" forum. Moderator Pops1860] 1 how will you react when the market goes down 50%? 2.how will you react when the down market continues for many years? 3. Do you have a calendar that t...

FeralCat wrote: ↑Sun Sep 08, 2024 8:49 pm

Dottie57 wrote: ↑Sun Sep 08, 2024 8:42 pm

FeralCat wrote: ↑Sun Sep 08, 2024 3:09 pm Given that Bona is spray and wipe, I wouldn't trust the residue it leaves behind. Bona isn't really a "natural" cleaner. What about a little bit of dishwashing liquid (you choose the safe brand) and water?

Bona is recommended for wood floors. Don’t know about LVP

I use Bona on my wood floors. It is recommended for wood floors, but not specifically for kids.

I have not seen a floor cleaner specify as good for kids. I assume your kids aren’t licking the floor.
.

Otherwise look for Mrs Meyers products. Probably available in your area.

$420K in 529 Plans for 2 kids currently ages 4 and 8? Is that accurate or is there an typo of a zero in there? If no typo, then are you planning on using 529 proceeds to fund private Primary or Preparatory school as well? If not, just thinking of what the $420K will be in 10 or 14 years from now and trying to figure out what even the most elite private colleges could even cost? Maybe I'm just ignorant on this as I'm tracking my kids to large public state university costs, but even doubling that cost for 2 I can't get anywhere in the neighborhood. I do know costs for higher education tuition has gone up much more than inflation over the past 20 years, but this has me scratching my head. Maybe saving for grandchildren education too? Hello I ...

FeralCat wrote: ↑Sun Sep 08, 2024 3:09 pm Given that Bona is spray and wipe, I wouldn't trust the residue it leaves behind. Bona isn't really a "natural" cleaner. What about a little bit of dishwashing liquid (you choose the safe brand) and water?

Bona is recommended for wood floors. Don’t know about LVP

The house may not have problems.

Sold my parents ranch house in 2020. Built in 1954 as a tract home.

Beautiful oak woodwork and floors through out the upstairs. Lead pipes downstairs. Upstairs plumbing looked to be copper. We think the tiles dad putin a flooring was probably asbestos. He and a neighbor bout extremely cheap stuff as new home owners. The house was resided in laye 1980’s with steel siding. No asbestos found. Theold shakes had been removed. New electrical panel done with akitchen remodel.

All in all a nice little house.

CyberBob wrote: ↑Sat Sep 07, 2024 1:12 pm Since you mentioned you had an iPad, have you checked out Swift Playgrounds?

+1

same although I opted for paper check. not going to touch zelle/venmo or hand out actual banking info heh Just a note. I have found zelle to be good for transacting in person between individuals. I sold a piece of hobby equipment and received payment through zelle. Almost instantaneous. You can’t pull money using zelle only push.s I am aware I have worked in finance(bank) tech in recent years but I still would not use it outside of I know you and you know me relationships. IE, I refuse to use it unless it is a known entity like my wife. I know I am stuck in the 80s but it is comfortable here. :) Thing isI wanted to sell a1200$ item. The buyer didn’t have checks. So i gave her the email linked to my bank account and she pushed $1 to me . It...

I am retired since 2018. Was 60/40 during work life. Same in retirement.no changes.
2.5 more years until SS AT 70.

cosmos wrote: ↑Sun Sep 08, 2024 3:55 pm same although I opted for paper check. not going to touch zelle/venmo or hand out actual banking info heh

Just a note. I have found zelle to be good for transacting in person between individuals. I sold a piece of hobby equipment and received payment through zelle. Almost instantaneous. You can’t pull money using zelle only push.s

tibbitts wrote: ↑Sun Sep 08, 2024 3:13 pm

Dottie57 wrote: ↑Sun Sep 08, 2024 2:52 pm ******RMD increase with age.*****

If you're looking at real returns - since most taxes are inflation indexed (admittedly not all) - I'm not sure RMDs for fixed-income accounts increase much with age.

Just thought I should include.
Correction -rmd percentages increase each year.

I rand mom’s number as if she was 72 : filing single at

Ss income 15600
RMD ON 400k = 15100
Total income is 30700.

Her taxeable income= 500
Taxes are 52.50

Again this is for single age 72..



The same scenario bu Married Filing separately status. Income is greater.
Taxes are over 1.4k.

******RMD increase with age.*****

All, Thank you for the replies. All good information all on point as far as how precarious my mom's financial position could wind up. There is certainly a lot "wrong" with their financial arrangement but "fixing" it has been a discussion had for several years that's gotten no where. That's why I'm trying to work with what she has and where they are as a couple. I'd like to focus on the original idea to get her currently tax deferred IRA into a Roth IF it can be done painlessly. If it can't that's ok too. But again, with just the $400K, there's zero chance I'd even think about Roth conversions. 02nz, Can you help me understand why a small IRA isn't worth converting IF it can be done at close to zero costs? It may or may ...

I have a 2018 Toyota Camry XLE which needs new tires. Recommended Tires at the dealer cost 250 more than the same at Costco. I’ve done a search at Costco for tires that fit my car and the two big brands are Michelin and Bridgestone. Which is brand is better? The tires recommended by the dealership shop are Bridgestone Turanza EL440 which are all weather. The shop also told me my tires probably wore out before they should have because the wheels are out of alignment. I have no problem driving. Only 24k miles in 6 years. Wouldn’t i be able to feel a problem in alignment? Would appreciate any info you can provide. Bridgestone or Michelin, whichever is in your best budget and on sale, at the local Costco. have them check your alignment while i...

I have broadened things quite a bit as finding a similar job in MI will never happen. I looked into auto, project, management, museum curator, starting a home inspection business, contacting for engineering design work, creating a low volume machine shope leveraging freinds with contracts in industry, etc. If you're an aviation guy and crave engineering challenge, none of those things will make you happy. Go with Boom or Joby. Once you're out of driving range, the difference between a 2 or 4 hour flight is immaterial. Personally, I'd stay put and get a different house with a groomed yard and a pool - or get a mongoose to deal with the critters. Yard is nice, just on wetlands. Have a nice community pool Was offered a role by leadership at B...

I wonder f this wil end up like market timers thread.

They are three miles from me. Very close. I can go in and talk to someone about the tires and then order what I want.

sport wrote: ↑Sat Sep 07, 2024 3:15 pm If you live in an area that gets snow, I recommend the Michelin Cross Climate 2 tires. I have them on my Camry. They are very good for all year driving and very good in the snow.

Yes, I live n Minnesota. These are a good deal at Costco right now too. Under 900 for 4.

I’ll be going to Costco on monday or tuesday for tires.

I have a 2018 Toyota Camry XLE which needs new tires. Recommended Tires at the dealer cost 250 more than the same at Costco. I’ve done a search at Costco for tires that fit my car and the two big brands are Michelin and Bridgestone. Which is brand is better? The tires recommended by the dealership shop are Bridgestone Turanza EL440 which are all weather. The shop also told me my tires probably wore out before they should have because the wheels are out of alignment. I have no problem driving. Only 24k miles in 6 years. Wouldn’t i be able to feel a problem in alignment? Would appreciate any info you can provide. Bridgestone or Michelin, whichever is in your best budget and on sale, at the local Costco. have them check your alignment while i...

J295 wrote: ↑Sat Sep 07, 2024 2:22 pm Search the Toyota forum for suggestions

Personally, I prefer Michelin for our SUV as was recommended by Lexus forum members.

We purchase our tires at Sam’s. I’ve heard good things about Costco.

We got in almost unbelievable 95,000 miles on our last set of Michelin. I would generally expect for our tires around 60,000 miles.

As for alignment, a mechanic can check with a wheel alignment device.

Six years on your tires – – I’m wondering if they’re showing any tire rot?

Tire rot was mentioned as a possibility but not actually noted as found.

I have a 2018 Toyota Camry XLE which needs new tires. Recommended Tires at the dealer cost 250 more than the same at Costco.

I’ve done a search at Costco for tires that fit my car and the two big brands are Michelin and Bridgestone. Which is brand is better?
The tires recommended by the dealership shop are Bridgestone Turanza EL440 which are all weather.

The shop also told me my tires probably wore out before they should have because the wheels are out of alignment. I have no problem driving. Only 24k miles in 6 years. Wouldn’t i be able to feel a problem in alignment?

Would appreciate any info you can provide.

I’m 65 just retired and collecting SS, about 3k a month Wife is 68 retired , SS about 1500 a month plus pension about 3500 a month No debt except 1200 a month rent Have about 900k combined in 401k both in vanguard retirement fund we don’t plan to touch until MD requirements We both have Roth’s with about 250k in each, laddered CDs at 5percent coming due after new years Credit union CDs aprox 720k at 5.75 percent coming due end of October Schwab joint brokerage with aprox 300k in laddered CDs coming due end of the year Have about 100k in a mm account at credit union The CDs in all accounts pay interest monthly , I use it like a mini pension to pay bills CC bill is about 2500 a month , I use it for everything , gas , groceries etc My concern...

student wrote: ↑Thu Apr 25, 2024 10:25 am In general, I don't do direct debit from my bank account unless it is a fixed amount, as the protection is not as good as credit card, in case of an error resulting in overcharge. If I must do it, I will use an account with limited fund and no overdraft protection.

I don’t think it is worth it to give out your banking info foe $36.00 a year.

I don't think I would immediately transfer-in-kind, but I also would not leave with that advisor for any length of time. You might get the advisor to give you free trades to unwind this portfolio. Ask them. Just remember, that your desired asset allocation and reasons for investing are NOT the same as your parents. I'd start a spreadsheet with documentation for all the "Dates acquired" and "Dollar amount paid" for every single lot in the set of investments given to you. Some of the investments may have multiple lots. Then I would start to "unmanage" them,. If you search bogleheads.org with the term "unwind" you will find threads like this: https://www.bogleheads.org/forum/viewtopic.php?t=432428 Also ...

I used to target a 28x expense or ~3.5% SWR as "my number" for retirement - which would be about a 40 year retirement period for me. This is probably a nice problem to have, but a combination of market growth and generous compensation saw my investments go from 23X in 2022 to 27X in 2023 and now is at 38X in 2024. I am starting to think if I need to reset my goalpost since the market has been extremely generous. And to do so, I was toying with the idea of "adjusting" my number to account for current CAPE ratio somehow so my number is always tied to CAPE. Has anyone done anything of this sort, am I overthinking things? The length of your retirement also affects the portfolio size needed. The Trinity study concluded that ...

Nw over $2 M - includes my house. Portfolio approx 1.6 M. And yes the 75k is ss and pension combined, before taxes, approximately, since it depends on when I retire and when I start collecting (I plan to take my pension when I retire and wait until 70 for ss if I can). I am also very well insured. Just to put that into perspective... Your net worth is about 10x the median net worth of Americans age 55-64, and about 8x the median net worth of Americans 65-74 y.o. https://www.aol.com/net-worth-retirement-143924554.html The vast majority of Americans retire on a lot less than what you currently own. You could easily live nicely on your SS plus pension alone without need to tap into your savings, especially if a chunk of your savings was infla...

Annette,

Your portfolio worth is the key to retirement. It is not a networth but portfolio that can be easily turned into cash for living expenses.

So you have 1.6mm portfolio. Keep adding to it to get to 2 or 2.5 mm portfolio.

Funding my retirement from 61 to 70 has not been easy but doable. My numbers are close to yours. 2mm including home and home. 1.5+mm for portfolio..

Sorry this is happening and taking up your time.

In PA if I’m not working, I can qualify for Obama care with very little monthly on health insurance Double check this because your rental income will count in the income calculations. You may not get much of a subsidy but even if you have to pay the full price of healthcare it is only for seven or eight years until you turn 65 and get on Medicare so you can budget for that. I have a paid off house in Vegas, worth $725k and currently being rented for $2600 a month I did not follow all the rental numbers but it sounds like a terrible rental. If you sell it and clear $600K that could be in a money market fund which is generating 4% which would be $24K a year or $2,000 a month. You also need to consider how that will work when you are older an...

This isn't the end of the world. Neither my brother or I did damage to the family cars. Neither of us had our own sets of keys to the family cars. No tickets. We knew that it was a privilege extended to us by driving safely. We kept the cars clean.

A teen driver can work out well. Bro and I picked up relatives, ran errands for parents. I picked my brother up after NorthStar hockey games - he was always about the last one out of the rink.... BRRRR!

I was always wondering who is maintaining this website. Since it is free and open and no ads, I assume they are all volunteers. Thank you for whoever is doing it. Yes, they are all volunteers. AND there are indeed at least some costs to running this site... use of servers, electricity... etc... So round about holiday time, you may see some links to donate. That can be done any time of year: Look at the top of the page just under the blue header for " Support this Site ". There is a place to click to Donate . Here is the first paragraph from that linked page: " Since Larry Auton and I (Alex Frakt) created this site in 2001, we have put in thousands of hours and thousands of dollars providing programming, hardware, bandwidth a...