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    • Does't the advice pertain especially well to maximizing Social Security? Financial advisors seem to miss the big advantage of maximizing SS being naturally more aggressive in stocks. My guess it's more advantageous to them to keep higher investment account balances and patrons fearing more of investment turn downs. The blog "Fat Fire Lady" lists an acceptable retirement investments from Vanguard being VTI or VOO for life. I think the reason or justification for such a simple portfolio exists because of starting young with much personal capital to earn and contribute to monthly savings is such a big advantage. Your account balances are so far above being conservative that draw downs are less threatening.

      Post: Dump the 60/40 and target date funds for 100% stock plus annuity portfolio?

      Link to comment from February 7, 2025

    • Good advice! Another tax trap for 401 or IRA owners, with much lower income, is to realize the true tax cost of withdrawals from your IRA. For example, compare the increasing cost to increasing withdrawals of the IRA or 401. My cost, because of losing the tax advantages of Social Security, quickly goes to 20%. This is my true cost of pulling taxable money out of the IRA. This high cost occurs even though my effective and marginal rates are very low. I would have been better off saving in taxable other than my wife's 401k 50% match.

      Post: Trouble Ahead

      Link to comment from February 6, 2025

    • Thanks Dan, for a stimulating and good discussion. Someone commented that Social Security was insurance and isn't that what may we really desire? We should insure to decrease the high risk, low probability events and not to make money to provide retirement income. May Social Security be improved to actually focus on the high risks events that have been mentioned? Leave income generation to the open markets that would gradually give investors better alternatives to what they need at better returns. I've read articles that citizens behave better if they have a piece of the pie to risk. They have a stake in the future and not just complain about the ever present need for increased government payments. I do feel sometimes that retiree's social security payments are characterized as an expense to the national budget or the reason for our national debt.

      Post: They’re Right, I’m Wrong, Sort Of

      Link to comment from February 3, 2025

    • Thanks Rick, for making the comparison. Would adding the employee match change the investment returns? Also, with the current income tax load on Social Security, for most of us, the calculations might swing to Roth investments early in our employment years.

      Post: Social Security vs. Private Investment Accounts – RCC runs some numbers.

      Link to comment from February 3, 2025

    • Frank is calculating the average value of his portfolio during the past year, then utilizing the average value for withdrawal percentage calculations. Sounds good to me, especially if pulling money out multiple times during the year. Frank is doing a year end review. However, not so good to pull money out of the portfolio without calculating the portfolio changes, meaning, better to do this at the time of cash withdrawal. For example, a January '25 cash withdrawal calculated with a desired 4% withdrawal rate = 12*.04/12 *(portfolio start value+portfolio end value/2). Using mjflack's numbers mentioned below .0033x12*$67750 = $2,682.90 for January '25 withdrawal given the desire for 4% annual withdrawal rate. Note when the portfolio has dramatic changes better to do monthly withdrawal calculations and add these monthly totals for what ever time period.

      Post: The Draw of Cash

      Link to comment from February 2, 2025

    • The crocs will know what to do with the kittens.

      Post: Crocs and Cats

      Link to comment from January 2, 2022

    • Directing health care priorities by politics is not cost-effective as well as government incompetence in managing costs. To easy to pass the buck to taxpayers and award political spend parties. I love the medical cost-sharing method. Enjoy the freedom of choice to award organizations that share your principles. No insurance or government overhead. HSA's also a powerful tool to keep costs down. We should always have citizens pay for services. We need to have skin in the game. Free service as you say is not free and usually abused. Consumers learn to be angry to get served. Not good. Can you imagine the improvements in public ed if consumers had skin in the game?

      Post: Feeling Better

      Link to comment from October 27, 2021

    • First time I've read a post that confirmed my financial life was on the right path. Sure a lot of advice to buy your dream 2rd home, purchase more long-term health insurance, double up on with umbrella insurance, buy Roth IRAs, annuities, when winning the game stop investing, minimize social security and invest in stocks and same with paying off a house mortgage. I immediately switched to HSA health insurance when available and was amazed at the cautionary tales offered by friends. The account is set to 100% stock VTI ETF fund with hands-off trading. The account is set to assist in long-term health care needs, maybe 20+ years from now. I did invest in rental homes and found they eliminated the concern of life insurance needs, saving for large investments such as a new business, eliminated the concerns of early retirement financial needs and boredom. I will get rid of them before taking social security at 70. Your posts and all of Humble Dollar are my go-to site for advice.

      Post: Go to Extremes

      Link to comment from July 31, 2021

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