Paul Stifel

Comments:

• No mention of individual bonds' default risk? I've had them go south. And in the initial comparison of individual bonds vs a fund purchased in 2022, a fairer evaluation would have made the comparison when the individual bonds matured, not just two years later. Bond funds don't just sit there, they buy new issues continuously. Whether this helps or hurts, I don't know, but fair is fair.

  Post: Question of Interest

  Link to comment from August 6, 2024

• I retired in 2002 at age 55. My investments had declined by about a third in the post-2000 period, but I pulled the plug anyway. Since I planned to delay Social Security until age 70, I had to withdraw from my savings to supplement my pension. I made no percentage calculations (although looking back it was initially ~3%); I just took out what eliminated the shortfall. By the time I got to 70, my overall retirement savings had grown by a factor of ~2.6. My only regret is that it was all in IRAs; I had completely depleted my regular investment account over the years, withdrawing over $300K. Now I have large RMDs, which is not the worst problem to have, but I wish I had taken the money out of the IRAs.

  Post: Did you retire in or around year 2000? If so, how’s it going?

  Link to comment from June 22, 2024

• We follow a similar tracking procedure, except we do it once a year. If the checking account balance at year's end is above what it was in last year's tally, cash flow is positive--and the surplus is moved to investments (we don't draw anything from our investments except our RMD, which is tracked separately--most of the RMD goes back into investments, taxes on the RMD, QCDs or Roth transfers). The first 12 years or so of our retirement (before claiming Social Security) we had negative cash flow and we did use Quicken to track everything. After cash flow went positive, we stopped tracking and just enjoyed ourselves. If the yearly balance check ever goes negative, we will have to get back in the weeds I guess, but I'm not going to make work for myself until then.

  Post: Horse Then Cart

  Link to comment from February 14, 2024

• If you buy an electronic I-bond at Treasury Direct, you can cash a part of the bond; you don't have to cash the whole thing. See https://www.treasurydirect.gov/savings-bonds/cashing-a-bond/#id-electronic-ee-or-i-savings-bonds-152262

  Post: Lessons I’ve Learned

  Link to comment from February 7, 2024

• Try to understand where Social Security + annuities/pension + RMDs will position you for IRMAA when all three are paying out. I'm in a similar position now--not needing the RMD to spend. I wish I had tapped the IRA between retirement at 55 and taking Social Security at 70, rather than taking withdrawals from my taxable accounts. If the IRA grows too big, the RMDs can trigger IRMAA. I'm not at that point, thankfully, but close enough to see it could be a problem.

  Post: Happily Ever After

  Link to comment from December 16, 2023

• We never plan to return to the US from International flights and connect in Chicago. Even if the weather is ok, the delay with clearing customs, getting on the train to arrive at domestic terminals and have to go through security as if we were walking in off the parking lot is a delay that's hard to predict (Miami also). Atlanta is much better, but they have many fewer international connections. As retirees, we've developed a few rules: Don't connect. Book a room at the airport beforehand and fly on the next day. We have time.Don't arrive in Chicago or Miami or Kennedy if you can help it. Don't fly coach! What are you saving your money for? Enjoy life. We always flew coach before retirement; now flying comfort trumps cost. Otherwise, we just stay home.

  Post: Plane Sailing

  Link to comment from September 10, 2023

• The thing that has always gotten my goat is that I don't know what the brackets will be two years hence, yet if I go $1 over, I get to pay extra. It is impossible to manage this exactly, so I have to guess what the future brackets will be and then stay a couple thousand short of the limit. This mostly affects my efforts to roll over $$ from IRA to Roth. I could just use the current brackets, knowing the future brackets will be higher, but that means I miss rollover opportunity.

  Post: The Gift of the MAGI

  Link to comment from December 17, 2022

• I bought the book. I have not finished it yet, but so far it is a sales pitch for annuities. I have no problem with annuities, but the single focus makes this a purchase I regret.

  Post: When I Get Stupid

  Link to comment from November 10, 2022

• I have no problem with higher Medicare taxes as my income rises, but the current process has two big problems as I see it. 1) the 'gotcha' of the steps in applying the additional costs; one dollar over and you go in the hole big time. 2) In any tax year, NO ONE knows what the exact dollar MAGI points for those steps will be two years in the future--that's the way the process works; a two year look back for MAGIs that are applied to steps that that are specified after the two years ago tax year ended. The normal income tax process is much fairer, applying higher rates progressively with no step functions.

  Post: Triggering IRMAA

  Link to comment from October 30, 2021