Dan Malone

Comments

• 25 times our expenses for both needs and a reasonable amount of wants. That’s a good approximation of a “SAFEMAX” portfolio withdrawal rate of 4% plus inflation to last through retirement. (If I recall correctly, “SAFEMAX” is the term coined by Bill Bengen for the maximum amount a portfolio invested in 50% in an S&P 500 index and 50% in U.S..Treasuries could distribute annually and still assure the portfolio would last for at least 30 years, based on all past combinations of market behavior in that length of time.) We passed that amount a decade ago or more. I’m still working and saving at age 65 to create more cushion, and provide for greater “wants” expenditures, larger legacies to the kids, and larger annual and estate gifts to our favorite charitable organizations.

  Post: Feeling Secure by Jonathan Clements

  Link to comment from May 2, 2025

• What brokerage company do you use?

  Post: It’s 2025. Do you send checks by mail?

  Link to comment from April 27, 2025

• Kristine, thank you for this post. I have owned TIAA Traditional for 6 years as a bond substitute, but never considered converting those funds to an annuity until now. Thanks for the idea! FYI, I started investing at TIAA with their (domestic stock) Equity Index in 2009, which grew with excellent returns in the run up of the stock market in those years. In 2019, I converted the full balance into TIAA Traditional as a bond substitute, not paying much attention to its 3% guaranteed crediting rate at that time. As interest rates dropped at the start of Covid in 2020, however, that 3% guaranteed return was terrific. And with the rising interest rates in 2022- 2023 that led to 15 - 20% capital losses in bond funds, TIAA Traditional held 100% of its value. So it's been a wonderful way to invest about 15% of our portfolio as a bond substitute for the last several years. If any HD readers using TIAA Traditional do not know about the ability to withdraw funds from TIAA Traditional for at least 90 days and then reinvest at the then current (and typically higher) crediting rate, talk to your TIAA rep about that. Or let me know, and I'll look it up and get the info to you.

  Post: RDQ Sorry folks, I still see annuities, including deferred annuities, as a viable option for creating steady retirement income.

  Link to comment from April 26, 2025

• Jan, my wife's government pension would have reduced her SS spousal benefit before the SSFA passed. But my understanding is that GPO applies to spousal and survivor benefits, and WEP applies to your own "earned" SS benefit. Therefore, the required 40 quarters of minimum earnings apply to WEP, but not to GPO. Did you mean to refer to GPO or WEP, or am I missing something?

  Post: Going Back to Work (Briefly)

  Link to comment from March 29, 2025

• "To whom much is given, much is required." I support our nation's progressive federal income tax system and am grateful that our family's income and resulting payment of federal and state taxes help those less fortunate, as well as paying a larger share for national defense, regulating commerce, maintaining interstate highways, etc. For those who confront illness or disease, or other unexpected setbacks in life (whether mental, emotional, physical, job loss, or whatever), I am happy to outsource my benevolence through a state or federal government means-tested programs which my taxes go to support. We are happy to do this as a household within the top 5% or 10% of income. My thinking is that households whose incomes exceed $500,000, $1 million, $10 million, or $100 million should be willing to pay a larger percentage share of their income bounty. The financial opportunities provided in our country, and the stability resulting from the rule of law supported by our federal and state governments, are big parts of these high earners' success. What I don't support is those who are able to perform some type of gainful employment, but whether by flaws in the governmental program design or the recipient's dishonesty, benefits are paid to some who really shouldn't qualify (in my opinion at least). Those who can work, but choose not to, spoil it for those who really need help. Bad apples spoil the whole bunch.

  Post: Should all Americans pay federal income tax? By Ben Rodriguez

  Link to comment from March 22, 2025

• I think your Breakers question is answered in the linked article included by Adam above, relating to squandering a family fortune by poor planning or profligate spending by those in the later generation who had not earned it: https://www.businessinsider.com/how-vanderbilt-dynasty-lost-its-fortune-2017-12

  Post: Picture This

  Link to comment from March 15, 2025

• I agree. Mike Piper found the advantage gained by using taxable accounts to pay the tax incurred outweighed most other benefits/advantages of Roth conversions. William Perry mentioned Piper and linked his presentation on Roth conversions at the Bogleheads conference in the first comment on this post. 

  Post: To Roth Convert or Not

  Link to comment from March 8, 2025

• You may contact me using this profile's email address. (For some reason posts from my phone use a different profile than those from my laptop.)

  Post: To Roth Convert or Not

  Link to comment from March 8, 2025

• I’ve had two similar experiences.  The first was with a dentist whose office was on the same floor as mine in a downtown high-rise building. After seeing him several years, he said the x-ray indicated a spot cavity that needed to be filled. Since I had not had a cavity in over two decades, I asked if he would show me on the x-ray. Obviously flustered, he put the x-ray up to show me the "spot" on the x-ray that he then said “looked suspicious.” Seeing nothing (to my untrained eyes), I told him I was busy that day and would schedule it for later. I returned more than two years later. After x-rays & a cleaning, he said nothing about that mysterious spot/cavity. That was my last visit to his office. After moving to a new city in 2008 and visiting a new dentist, every visit for 3 years they emphasized – with high-tech procedures and pictures inside my mouth -- the need to replace several old fillings which were “cracking” and therefore likely to cause me to lose a tooth. I finally changed to a new dentist, who I knew from college, and reported what I had been told. His response was, “I never remove old fillings unless absolutely necessary. There is always a chance the tooth may break or crack while removing it, so we just leave fillings in unless the tooth is bothering you, or we see some other reason to remove it.”  I was SO glad to find an honest dentist. His charge for cleanings are a slight bit higher, but I am always happy to pay a bit more and have confidence that I’m getting honest advice. 

  Post: Hole Truth

  Link to comment from February 27, 2025

• I'm guessing U.S. Treasury, but also wish acronyms like this weren't used to leave us guessing.

  Post: Bond Index Funds or Something Else?

  Link to comment from January 30, 2025