Search found 11757 matches

by delamer
Mon Jul 26, 2021 9:56 pm
Forum: Personal Investments
Topic: Really how many times your annual spending?
Replies: 49
Views: 3461

Re: Really how many times your annual spending?

Are people using “after-tax” savings, tax-deferred or both for this calculation? 25x annual expenses would require more $ if the majority of my savings were locked in a tax-deferred 401K versus a Roth for example… Annual expenses include taxes. If the vast majority of your money is in your 401k, yo...
by delamer
Mon Jul 26, 2021 9:35 pm
Forum: Personal Investments
Topic: Really how many times your annual spending?
Replies: 49
Views: 3461

Re: Really how many times your annual spending?

Are people using “after-tax” savings, tax-deferred or both for this calculation? 25x annual expenses would require more $ if the majority of my savings were locked in a tax-deferred 401K versus a Roth for example… You need to take taxes into account for the 25X. They are an expense just like grocer...
by delamer
Mon Jul 26, 2021 7:44 pm
Forum: Investing - Theory, News & General
Topic: Taxable non-retirement account
Replies: 4
Views: 473

Re: Taxable non-retirement account

Unrealized capital gains are not taxed at all, so there is no need to do anything with them. That is, do not sell the shares since you don't need the money. I guess I do not quite understand what you are trying to accomplish. Agreed. If you gift money to family, you could transfer shares to them in...
by delamer
Mon Jul 26, 2021 7:30 pm
Forum: Personal Investments
Topic: Roth Conversion Questions / Limits /Age
Replies: 10
Views: 632

Re: Roth Conversion Questions / Limits /Age

Hi, I am considering doing some Large Traditional IRA to Roth IRA conversions. I have a few questions before I start so I do not screw it up. I am currently 67 years old. 1. Is there an income limit that prevents you or penalizes you if you make a conversion? For example between a pension and socia...
by delamer
Mon Jul 26, 2021 7:15 pm
Forum: Personal Consumer Issues
Topic: Need travel help
Replies: 38
Views: 2610

Re: Need travel help

Frommer’s has lots of suggestions for what to see, where to stay, and where to eat for a wide variety of destinations: https://www.frommers.com/ I’ve found it very useful in planning domestic trips. For international, cruises have worked well for us. If you want to explore one place in depth, cruise...
by delamer
Mon Jul 26, 2021 3:57 pm
Forum: Personal Investments
Topic: Sitting on Cash
Replies: 20
Views: 3297

Re: Sitting on Cash

Recently I have come into another $200K in inheritance. I'm talking to my accountant about using some of that cash as tax payments to convert some of that traditional IRA to Roth. But I still need to park the rest. With ~$165K in TIRA, it seems unlikely to me that Roth conversions make sense for yo...
by delamer
Mon Jul 26, 2021 3:34 pm
Forum: Personal Investments
Topic: Seeking feedback to help parents into retirement
Replies: 71
Views: 5528

Re: Seeking feedback to help parents into retirement

Based upon all of the information, I'd suggest that they NOT use their modest savings/investments to pay off the car and student loans. They need an emergency fund. Instead they should cut their spending to the bare minimum and pay the debt off with their surplus income. If they cut current expense...
by delamer
Mon Jul 26, 2021 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Suddenly have to pay for kids’ colleges
Replies: 44
Views: 6996

Re: Suddenly have to pay for kids’ colleges

I’m sorry to hear that the grandfather reneged. It’s a crappy thing to do. There’s reneging, and then there’s reneging on the eve of writing the first check. I can paint many scenarios where gramps couldn’t fulfill his promises, but I find it difficult to paint one where it needed to be a surprise....
by delamer
Mon Jul 26, 2021 2:01 pm
Forum: Personal Investments
Topic: Take out a Mortgage to invest?
Replies: 24
Views: 1856

Re: Take out a Mortgage to invest?

Given that you are talking about less than 10% of your liquid assets and you are planning on investing in the 3-fund portfolio, it seems like very low-risk for fairly high reward.
by delamer
Mon Jul 26, 2021 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Suddenly have to pay for kids’ colleges
Replies: 44
Views: 6996

Re: Suddenly have to pay for kids’ colleges

Why wouldn't you open a 529 for the oldest and continue to fund it until the youngest has graduated and just transfer the beneficiary as needed? That's what I've been thinking as well. No downside to opening the 529 now. If the 529 balance increases in value in the next 1-4 years, could use part fo...
by delamer
Mon Jul 26, 2021 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: How to keep pre-marital assets separate, while still contributing?
Replies: 44
Views: 2151

Re: How to keep pre-marital assets separate, while still contributing?

The only time this would matter is in the event of a divorce. But divorces can be incredibly messy. While you may assume good faith and a handshake is adequate now, if you actually go through divorce it won't be. I have too many friends who thought their divorce would end amicably but it was anythi...
by delamer
Mon Jul 26, 2021 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: How to keep pre-marital assets separate, while still contributing?
Replies: 44
Views: 2151

Re: How to keep pre-marital assets separate, while still contributing?

The only time this would matter is in the event of a divorce. But divorces can be incredibly messy. While you may assume good faith and a handshake is adequate now, if you actually go through divorce it won't be. I have too many friends who thought their divorce would end amicably but it was anythi...
by delamer
Mon Jul 26, 2021 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: What is the average savings rates for bogleheads?
Replies: 225
Views: 14576

Re: What is the average savings rates for bogleheads?

I've done it in Southern California, Salt Lake City, Mesa, Houston, Austin, and finally Utah County, Utah over the last 18yrs. In 2013, the year before I got married, my total expenses were ~$11k. Now as a family of 4 we were at <$30k last year (Utah County), this year will be higher because we mad...
by delamer
Mon Jul 26, 2021 9:34 am
Forum: Personal Investments
Topic: Helping with Mom's 401k
Replies: 10
Views: 518

Re: Helping with Mom's 401k

What are the mechanics of making a chamge to her current allocation and to the allocation of future contributions?

You indicated that you don’t think she’d do anything, but can you help her create an online account and sit with her while she makes the changes?
by delamer
Mon Jul 26, 2021 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Questions about selling my home.
Replies: 16
Views: 1385

Re: Questions about selling my home.

When I sold my house last year the realtor provided me with a spreadsheet to plug in the sale price and from there it detailed all of the commissions and other expenses. There were no surprise costs to me. She was a real gem. --Randy Bo Bandy If your agent can’t/won’t provide that information, find...
by delamer
Sun Jul 25, 2021 7:32 pm
Forum: Personal Investments
Topic: Starting Over
Replies: 21
Views: 2497

Re: Starting Over

You should be able to do an estimate of your retirement expenses at this point. With that, you can determine what your income needs are. The income will come from your withdrawals from investments plus any pensions/Social Security/annuities. That will help you hone in on the amount you need to targe...
by delamer
Sun Jul 25, 2021 7:01 pm
Forum: Personal Investments
Topic: Roth IRA index fund investment
Replies: 4
Views: 452

Re: Roth IRA index fund investment

Highly recommend that you read this for ideas: https://www.etf.com/docs/IfYouCan.pdf
by delamer
Sun Jul 25, 2021 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about selling my home.
Replies: 16
Views: 1385

Re: Questions about selling my home.

In my area, the total of realtor’s commission plus closing costs is around 7% of selling price. What closing costs are you including on the seller’s side? I know in some places it’s required (or at least traditional) for the seller to pay for the buyer’s title insurance but I don’t know what else y...
by delamer
Sun Jul 25, 2021 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: What is the average savings rates for bogleheads?
Replies: 225
Views: 14576

Re: What is the average savings rates for bogleheads?

I respectfully disagree. Again, as somebody that did it (in my mid-30’s, not that long ago). There are plenty of places still left in America where a single person can live comfortably on $20k and, in fact, millions of people do just that. It’s quite common, if you examine income data around the na...
by delamer
Sun Jul 25, 2021 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about selling my home.
Replies: 16
Views: 1385

Re: Questions about selling my home.

In my area, the total of realtor’s commission plus closing costs is around 7% of selling price.
by delamer
Sun Jul 25, 2021 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: What is the average savings rates for bogleheads?
Replies: 225
Views: 14576

Re: What is the average savings rates for bogleheads?

59Gibson, My 20+ years old daughter was doing it. Now, she earn more and still doing it. Ditto for my son. But, he earn more at above 50K level. It is actually not that hard. No, they do not live with me. KlangFool Klangfool, I think it's a severe disservice to members and visitors to BH website lo...
by delamer
Sun Jul 25, 2021 3:43 pm
Forum: Personal Investments
Topic: Traditional to Roth
Replies: 22
Views: 2008

Re: Traditional to Roth

So that is good news if I want to convert all 1M in the next 4 to 5 years. But that is quite a hit every year. If you push your AGI beyond $250k (MFJ) in any year, an extra 3.8% NIIT will kick in. I made this mistake — fortunately the hit will only be a few hundred dollars, but still. Roth conversi...
by delamer
Sun Jul 25, 2021 1:03 pm
Forum: Personal Investments
Topic: Traditional to Roth
Replies: 22
Views: 2008

Re: Traditional to Roth

Do you expect a pension? Will you delay SS to 70? (That would be my approach). I agree, converting up to the top of the 12% bracket is a good starting point. Converting your entire IRA to short bonds is a massive change in your allocation. Is that due to your risk tolerance changing as a new retire...
by delamer
Sun Jul 25, 2021 1:01 pm
Forum: Personal Investments
Topic: Traditional to Roth
Replies: 22
Views: 2008

Re: Traditional to Roth

So that is good news if I want to convert all 1M in the next 4 to 5 years. But that is quite a hit every year. If you push your AGI beyond $250k (MFJ) in any year, an extra 3.8% NIIT will kick in. I made this mistake — fortunately the hit will only be a few hundred dollars, but still. Roth conversi...
by delamer
Sun Jul 25, 2021 10:30 am
Forum: Personal Investments
Topic: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?
Replies: 68
Views: 7406

Re: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?

So I asked the spouse who has a better handling and at least year to year actual collection of data of our actual 'expenses' - which we did do fairly accurately. At least presently (and we are sloppy and not on any sort of tight budget, if we want something we go get it (we aren't big travelers and...
by delamer
Sat Jul 24, 2021 9:13 am
Forum: Investing - Theory, News & General
Topic: Factoring social security into withdrawal rate
Replies: 12
Views: 1479

Re: Factoring social security into withdrawal rate

If one is planning to retire at 50 and aims for a $4m nest egg. And assuming s/he expects $7k monthly between SS and pension starting at age 71.. Rather than a 3.5% withdrawal rate starting at age 50, why not start at say 5% and then plan to reduce it once SS and pension kick in.. to 3% for example...
by delamer
Sat Jul 24, 2021 9:04 am
Forum: Personal Finance (Not Investing)
Topic: What is the average savings rates for bogleheads?
Replies: 225
Views: 14576

Re: What is the average savings rates for bogleheads?

What do you include in savings and what do you include in taxes?

Retirement savings only or savings for all long-term goals, including college, vacation home, etc.?

Taxes can be income, Social Security and Medicare, mandatory employer withholding for a pension plan.
by delamer
Sat Jul 24, 2021 8:57 am
Forum: Investing - Theory, News & General
Topic: Waiting for 10% market pullback, to do conversion
Replies: 32
Views: 4229

Re: Waiting for 10% market pullback, to do conversion

Did you have a question about your plan? Seems that you should substitute “if” for “when.” And do a conversion to take advantage of the 22% bracket even if there isn’t a correction. It’s nice if you can convert more shares due to a (presumably) temporary market drop. But why make that a condition fo...
by delamer
Sat Jul 24, 2021 8:50 am
Forum: Personal Investments
Topic: Retiring year I turn 55: 401(k)
Replies: 12
Views: 3153

Re: Retiring year I turn 55: 401(k)

Just wanted to make sure you are aware of IRS Rule 72(t), that allows early withdrawals from your IRA without penalty:

https://www.thebalance.com/how-to-use-7 ... ls-2388257
by delamer
Fri Jul 23, 2021 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Sudden new job opportunity/interview
Replies: 15
Views: 2238

Re: Sudden new job opportunity/interview

Given your preferred lifestyle and low expenses relative to your income, have you considered asking to step back to a 4-day work week at your current job? You get out of the high security building for an additional day, plus you continue with your pension and retiree health insurance. Just a possibl...
by delamer
Fri Jul 23, 2021 8:57 pm
Forum: Personal Investments
Topic: Avoid taxes: How do I know which account will have the most capital gains if I cash out?
Replies: 11
Views: 834

Re: Avoid taxes: How do I know which account will have the most capital gains if I cash out?

Follow up question: Then am I correct in understanding hypothetically: -If I have a $100,000 in the account and $50,000 of is unrealized gains - then if I cash out $50,000, ALL of that will be taxable gains, correct? -If I have a $100,000 in the account and $25,000 of is unrealized gains - then if ...
by delamer
Fri Jul 23, 2021 6:16 pm
Forum: Personal Investments
Topic: Being more liquid
Replies: 9
Views: 901

Re: Being more liquid

You shouldn’t be taking investing suggestions from a guy on TV who is in the board of some companies.

His risk situation is a lot different than yours. He can go all cash and still fund a high-end lifestyle.


.
by delamer
Fri Jul 23, 2021 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Cash in bank to sleep well at night
Replies: 93
Views: 10348

Re: Cash in bank to sleep well at night

Don’t want to derail the thread on solar issues, but we added battery storage to our system which increased the gross cost by 25%. And our wattage was almost 50% greater than yours. Anyway, our net cost after all credits was in the low $30s. Thats great but keep in mind that it doesn't apply to eve...
by delamer
Thu Jul 22, 2021 9:16 pm
Forum: Personal Investments
Topic: 529 Plan Portfolios
Replies: 30
Views: 1937

Re: 529 Plan Portfolios

Thanks. I also feel like these Vanguard Target Enrollment funds are little too conservative. I was thinking of moving my existing target enrollment funds to later-dated ones to decrease bond %. Part of me just wants to switch to VTWAX. I can't see bonds adding much in returns in the near/mid term. ...
by delamer
Thu Jul 22, 2021 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Owner's title insurance for cash purchase - lawyer says mandatory
Replies: 69
Views: 4742

Re: Owner's title insurance for cash purchase - lawyer says mandatory

Do you think that if someone challenged your title to your home that the worst case scenario is just that you lose your equity? It seems to me that the worst case scenario is that you pay a ton of legal fees to fight such a challenge. And then you still lose all your equity. Title insurance covers l...
by delamer
Thu Jul 22, 2021 3:57 pm
Forum: Investing - Theory, News & General
Topic: Calculating Asset Allocation
Replies: 13
Views: 790

Re: Calculating Asset Allocation

choral54 wrote: Thu Jul 22, 2021 3:22 pm I would like to have a 60/40 allocation. What is recommended for styles of investing percentages within stocks and bonds categories? I am 65 years old. I haven't been paying too much attention to that aspect.
By styles, do you mean value vs. growth, for example?
by delamer
Thu Jul 22, 2021 3:54 pm
Forum: Personal Investments
Topic: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?
Replies: 68
Views: 7406

Re: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?

I’d really like to hear the secrets of any posters who are 3X the OP’s age, since he’s in his mid-40’s. So you want to hear from 135 year olds? :confused Sure! Secrets to a long life, and all that! You do understand that I was calling attention to a over-the-top statement by another poster, right? ...
by delamer
Thu Jul 22, 2021 3:04 pm
Forum: Personal Investments
Topic: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?
Replies: 68
Views: 7406

Re: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?

You can stress test a retirement model by looking at how severe the impact might be if you enter a one time large cost at some point in the future. For example try losing $200,000 from your assets one year and see how much that upsets things. You can also place a contingency on spending by seeing h...
by delamer
Thu Jul 22, 2021 2:48 pm
Forum: Personal Investments
Topic: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?
Replies: 68
Views: 7406

Re: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?

4% is conservative. It’s not hard to come up with a scenario including social security where net worth is increasing exponentially at time of demise, over a multiple decades long retirement period. I’m not sure what your point is. It’s also not hard to come up with a scenario where your portfolio d...
by delamer
Thu Jul 22, 2021 2:40 pm
Forum: Personal Investments
Topic: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?
Replies: 68
Views: 7406

Re: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?

I’d really like to hear the secrets of any posters who are 3X the OP’s age, since he’s in his mid-40’s. So you want to hear from 135 year olds? :confused Sure! Secrets to a long life, and all that! You do understand that I was calling attention to a over-the-top statement by another poster, right?
by delamer
Thu Jul 22, 2021 12:10 pm
Forum: Personal Investments
Topic: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?
Replies: 68
Views: 7406

Re: Early Retirement - No longer needing to work - Back of Napkin formulas to determine when?

@OP sorry couldn’t copy your userid on the mobile version. 4% is the napkin math guideline. It’s conservative. Ignore the arch-conservativeness of most posters on this site. Chances are that most posters are twice your age, and as much as 3 times your age. People who collect social security are vas...
by delamer
Thu Jul 22, 2021 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Cash in bank to sleep well at night
Replies: 93
Views: 10348

Re: Cash in bank to sleep well at night

BTW, 40k for solar? Are you powering a commercial building or something?? I’m putting up 8kW next month and it will net out about 16k after tax credits. Tesla can do it for even less but I didn’t want to deal with all the headaches they are going through. Solar gets cheaper every day…. Don’t want t...
by delamer
Wed Jul 21, 2021 6:09 pm
Forum: Personal Investments
Topic: Fidelity ZERO funds complicating transfer to another brokerage / mortgage deal
Replies: 49
Views: 3074

Re: Fidelity ZERO funds complicating transfer to another brokerage / mortgage deal

Do you have to sell your entire position in the fund in order to meet the Schwab requirement?
by delamer
Wed Jul 21, 2021 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Reducing Taxes in Retirement
Replies: 48
Views: 3889

Re: Reducing Taxes in Retirement

As others have noted, there has been a big runup in a lot of portfolios over recent years. And certainly most people over the course of a 30 or 40 year investing cycle will have large gains in their investments. I have a spreadsheet showing our contributions to tax-deferred accounts over the years. ...
by delamer
Wed Jul 21, 2021 9:21 am
Forum: Personal Investments
Topic: Review my parents' humble retirement with me
Replies: 33
Views: 6185

Re: Review my parents' humble retirement with me

They've both been dedicated to generosity/serving/giving, and I think their low net worth is partly related to this. That's nice. Seems like now is the time to stop all that, so that they aren't forced to live on the generosity of others (you?) after retirement. If down the road they somehow have e...
by delamer
Tue Jul 20, 2021 9:22 pm
Forum: Personal Investments
Topic: Withdraw Methodologies
Replies: 23
Views: 2094

Re: Withdraw Methodologies

Most people don’t get through retirement without some large unexpected expense, like long-term care costs, medical expenses, or providing support for a family member. Since they come out-of-the-blue, they are difficult to plan for. But basic living costs (food, utilities, Medicare premiums) and irre...
by delamer
Tue Jul 20, 2021 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: Reducing Taxes in Retirement
Replies: 48
Views: 3889

Re: Reducing Taxes in Retirement

They're only going to be in the 22/24 bracket. The survivor will be in the 24. It's going to hurt the heirs more due to secure. It's too late to play the tax arbitrage game. They need to just live life, enjoy it, pay the taxes they've deferred. I am trying to convince them of this. Basically that t...
by delamer
Tue Jul 20, 2021 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: How do we decide where to live for our retirement?
Replies: 136
Views: 10281

Re: How do we decide where to live for our retirement?

Have not read the other responses. For many parents, the location(s) of their adult children will play a big role in this decision. For other parents, it doesn’t matter so much. And, of course, whose to say whether the kids will stay put? My in-laws moved from being 35 minutes from us to 9 hours awa...
by delamer
Tue Jul 20, 2021 12:22 pm
Forum: Investing - Theory, News & General
Topic: 10% drop of dividend income
Replies: 14
Views: 2428

Re: 10% drop of dividend income

I know dividend is just part of the gain and the total returns in recent years are pretty good. Still, you often hear people talk about consuming their dividends without withdrawing any principals. Curious if anyone keeps track of these numbers (dividend income changes), or any actions one could ta...
by delamer
Tue Jul 20, 2021 12:09 pm
Forum: Investing - Theory, News & General
Topic: 10% drop of dividend income
Replies: 14
Views: 2428

Re: 10% drop of dividend income

When you ask about actions to respond, what are you trying accomplish?

Keep a consistent (inflation adjusted) income from earnings?