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Escapevelocity

Age 54 - 50/50 allocation rising equity glide path to 60/40

Escapevelocity

2020content wrote: ↑Thu Apr 08, 2021 2:03 pm
Escapevelocity wrote: ↑Wed Apr 07, 2021 3:04 pm Yes without hesitation. Suggest you model it out using Bigfoot RPM.
Can you tell me more about Bigfoot RPM? What is it?

Thanks

Check out this link. It includes the download link

https://www.bogleheads.org/wiki/Retiree_Portfolio_Model

Escapevelocity

Why credit unions? A lot of the above accounts could be replaced by HMBradley for simplicity (until they adjust their structure). $100k cap, 3%, no transactions - you qualify for the 3% by saving 80% of your deposits into the account each quarter. +1 and you can bump the 3% to 3.5% if you open a cr...

Escapevelocity

Yes without hesitation. Suggest you model it out using Bigfoot RPM.

Escapevelocity

I just reread this entire thread and found it interesting in what it said and did not say. We have been retired for over 19 years I totaled up our spending for that time (from Quicken), and it averaged $90k per year. The devil, as they say, is in the details..... So here are the major categories......

Escapevelocity

A few limited allocations aimed at offsetting our low interest rate environment 1. $100k cash at HM Bradley (FDIC Insured via Hatch Bank) earning 3.5% APY 2. Crypto - $5k at BlockFI - GUSD stable coin earning 8.6% "interest" 3. $57k in domestic energy pipelines (MLPs) yielding 7-8% distrib...

Escapevelocity

When I read these threads, I just don’t understand how people live on such tight budgets. Granted I live in a HCOL area, SoCal, in a nice suburb, but if I just look at insurance costs (health, house, car, earthquake, umbrella) and property taxes, that adds up to over $40k annually. That’s without f...

Escapevelocity

I would counter the counter at current employer to $95-100k. If they want you badly enough they will pay it.

Escapevelocity

I'm thinking with my 1st daughter 1 year out from college and the markets pushing new highs, it may be time to dial back the girl's 529 plans. I stepped down from 80/20 a few years ago in both plans; I was targeting 50/50, but the market kindly disagreed with me, and over the last year pushed me up...

Escapevelocity

Not saying this is directly relevant to you, but here is a "data point" I am retiring next year at 55. Spouse does not work and has not worked (for pay that is - she raised our 3 kids). I have saved approx. 22x our projected initial annual spend including taxes. It is invested at 50/50 all...

Escapevelocity

nisiprius wrote: ↑Sun Jul 01, 2018 9:18 am "Scam" is a harsh word. Eugene Fama famously said of hedge funds, "If you want to invest in something where they steal your money and don’t tell you what they’re doing, be my guest." Does that equate to "scam?" No.

How is what you described NOT a scam?

Escapevelocity

Yes they are money grabs and play on the hubris of the ultra wealthy who tend to think they require a special class of financial assets. No SP500 for the country club crowd!

Escapevelocity

KlangFool wrote: ↑Fri Apr 02, 2021 8:29 am OP,

The pain of loss is several times bigger than the joy of gain.

KlangFool

This is so true! By extension, that pain of loss is likely to lead to panic selling, the avoidance of which which is the real point of a high bond allocation.

Escapevelocity

Today, I logged in and can see that I am in "Tier S" which is a 3.5% interest rate. This is based on having the credit card and spending at leat $100 per monthly cycle. The credit card is great by the way. It gives 3% rebate on top spending category each month and 2% on 2nd highest catego...

Escapevelocity

Don’t retire until your assets are sufficient with a conservative asset allocation. If your retirement is “feasible” only under some generous growth assumptions and and aggressive AA, then it’s not really feasible in a trustworthy manner. I decided for me that a 40/60 portfolio AT RETIREMENT will d...

Escapevelocity

Today, I logged in and can see that I am in "Tier S" which is a 3.5% interest rate. This is based on having the credit card and spending at leat $100 per monthly cycle. The credit card is great by the way. It gives 3% rebate on top spending category each month and 2% on 2nd highest categor...

Escapevelocity

I am a huge safety net guy. My conservatism is like this: My AA is 50/50. Of the bonds, 12% is in US Savings bonds, so that value is never going down. My spending, increased for expected retirement increases (health insurance and travel) comes to $62k per year. 25 times that would be $1.55MM. But I...

Escapevelocity

WS1 wrote: ↑Wed Mar 31, 2021 10:29 pm You’re rich. spend your money on blow and skydiving.

Is that coming from firsthand experience?

Escapevelocity

When you have a huge COLA'd pension like the OP (or two as mentioned by subsequent posters) AND a large investment portfolio, then it literally comes down to personal preference. You are going to die rich in basically any scenario. I'm amazed at the size of some of these public pensions. Really incr...

Escapevelocity

When so many pundits, including all of my advisers at Schwab ( Kleintop in particular)are convinced that international will outperform over the next 5-10, I have to take pause. My contrarian streak tells me to ignore them I agree. My sense is that International will continue to lag generally. But i...

Escapevelocity

Hey Dbr, agreed, the Fed Reserve has thrown older savers under the bus... and the bus has been several years long now! I take Swedroe's mantra to heart about 'willingness and need to take on risk' So I will take my SS, pensions and yearly rmd's and be very satisfied. Maybe dabble a little with a Be...

Escapevelocity

This would be close to the rmd's and would provide protection for all of our income needs. Thanks Can you clarify above? what is the point of having TIPs matching the RMDs on annual basis? It doesn't. There is confusion here between using a TIPS ladder to supply income to be spent each year and thi...

Escapevelocity

mnmac1 wrote: ↑Mon Mar 29, 2021 4:43 pm
This would be close to the rmd's and would provide protection for all of our income needs.

Thanks

Can you clarify above? what is the point of having TIPs matching the RMDs on annual basis?

Escapevelocity

Uniswap wrote: ↑Sat Mar 27, 2021 1:24 pm
investor_8675309 wrote: ↑Sat Mar 27, 2021 12:25 pm I talked to a financial planner a couple of years ago and she said it was on the bubble.
Lol

Please don't go back to that FA....really bad advice you got there.

Escapevelocity

Yes obviously!!

Escapevelocity

If same as RSUs, then the company would normally withhold taxes in the form of shares. That shouldn't change even with your leaving the company. YMMV but in my situation, RSUs that vest and options that are exercised after retirement will generate W2 income upon those events and not at the time of ...

Escapevelocity

OP, My philosophy. A) Don't worry. Be prepared instead. B) Be diversified. C) Be balanced. My story. My AA = 60/40. My emergency fund is not part of my portfolio. 1) March 2020. My follow-on project project was canceled. I was told that I will be laid off on 6/2020. The stock market crashed. I reba...

Escapevelocity

Some of the most popular posts here are full of outliers and should not be used to assess the average, median or mode of family finances. I take it as quite a few "humble bragging" about their $350k silicon valley salaries with $200k RSUs and buying $2million homes with $1.5 million netwo...

Escapevelocity

The average age in those places is usually mid-80’s. Just going from experience, I'd say late 60's and 70's is the average age for over 55 communities, full independent living. Low 80's is the average age for entering CCRCs, assisted living, memory care, and nursing homes. So it sounds like a good ...

Escapevelocity

Some of the most popular posts here are full of outliers and should not be used to assess the average, median or mode of family finances. I take it as quite a few "humble bragging" about their $350k silicon valley salaries with $200k RSUs and buying $2million homes with $1.5 million netwo...

Escapevelocity

"I got the credit card invite shortly after bumping my direct deposits to 2.5k per month. I think it was about 6 weeks later. Now that I have the card, I’m dialing the direct deposits back down in order to stay under $100k on deposit. I assume they won’t close my credit card as long as I pay o...

Escapevelocity

"I have been happy with HM Bradley so far. Is anyone using their credit card? From what I read, it gives an extra 0.5% on the savings account for a total of 3.5%. Plus, it give rewards of 3% for the top category. I am currently using fidelity 2% card for everything, so this could help me"...

Escapevelocity

As a retiree I look it it as the "next N years are ALWAYS the first N years of the rest of your retirement" and see nothing special about the first N years of your whole retirement, other than perhaps you are a bit more spooked when you first hear about "sequence of returns risk.&quo...

Escapevelocity

You don't need to jump through these hoops for occasional large withdrawals. You can earn "rate rewinds" which allow you to get out of jail free. These can be earned through referrals.

Escapevelocity

I wouldn’t pay it. They probably spent 5 minutes working it up.

Escapevelocity

Yes considering i had already won the game and also that having secured that 25% I would be sleeping well at night. What is the counter argument to that? Just to pile up more unneeded assets for the hell of it? OP is young and still has a high income. There's no reason to take that much off the tab...

Escapevelocity

FIREGuy88 wrote: ↑Mon Mar 22, 2021 8:52 pm
Escapevelocity wrote: ↑Mon Mar 22, 2021 8:43 pm I would put a minimum 25% in bonds.
At age 35?

Yes considering i had already won the game and also that having secured that 25% I would be sleeping well at night. What is the counter argument to that? Just to pile up more unneeded assets for the hell of it?

Escapevelocity

I would put a minimum 25% in bonds.

Escapevelocity

Does the OP somehow think he is only having to pay 12% on the entire $1M conversion?

Escapevelocity

The risk here is not equivalent to a bullish bet on crypto. It’s basically a bet that Bitcoin doesn’t disintegrate. I happen to believe it will go through major down cycles but will not disintegrate. It follows that well managed margin loans will be liquidated and margin called without disastrous lo...

Escapevelocity

I've done some limited research on this and as far as I can tell this is possibly one of the worst investments I've ever seen. I don't know why anyone would pick BlockFi over peer to peer lending like Prosper. I've had a Prosper account for "play money" level of investments for many years...

Escapevelocity

Thank you for working through this thought process. It makes sense then to buy crypto directly since that must be where the high interest rates are actually being generated, and then the upside is as high as it goes and downside is whatever you've put in (which is, the same with BlockFi in case of ...

Escapevelocity

I do not fear RMDs and want money from my retirement accounts to pay expenses in my old age. It is probably better to have lots of money than not enough to live on. @livesoft this is a fresh perspective. I don't see anyone commenting on the aspect of risk involved in pre-paying taxes early in life ...

Escapevelocity

Equity investment into a startup is not exactly analogous. This is more like investing in a bond than equity. The "problem" is that you don't have Moody's issuing debt ratings on these accounts. You're kidding yourself if you think the only problem vs a bond is the lack of a Moody rating....

Escapevelocity

Go to Block Fi website and read their FAQs to learn more. I decided to put 5k into GUSD after doing some research. I think it’s a good risk reward but clearly not without risk. They make money by making loans to clients who are buying crypto on margin. Yeah... I'd want waaay more than the return th...

Escapevelocity

Go to Block Fi website and read their FAQs to learn more. I decided to put 5k into GUSD after doing some research. I think it’s a good risk reward but clearly not without risk. They make money by making loans to clients who are buying crypto on margin. Yeah... I'd want waaay more than the return th...

Escapevelocity

Go to Block Fi website and read their FAQs to learn more. I decided to put 5k into GUSD after doing some research. I think it’s a good risk reward but clearly not without risk. They make money by making loans to clients who are buying crypto on margin.

Escapevelocity

lazynovice wrote: ↑Fri Mar 19, 2021 10:12 am
mikejuss wrote: ↑Fri Mar 19, 2021 9:00 am
barnaclebob wrote: ↑Fri Mar 19, 2021 8:56 amwhile a "crash" in bonds just means selling a little more when the time comes.
What do you mean by this?
Bonds don’t crash by 20-30% the way stocks do. A crash in bonds is 5-10%.

That depends on whether you have exposure to long durations.

Escapevelocity

A good post by OP. Another idea is to stick it out with your employer until age 55 if possible and take advantage of Rule of 55 penalty free withdrawals from 401k. Check with your plan administrator in advance to ensure they allow partial withdrawals. I plan to do this in combination with Roth Conve...

Escapevelocity

Max the 401k immediately. You have all the liquidity you need via 401k loan feature assuming that the liquidity is more of a potential need vs a known expense.

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