AUTHOR: Kevin Lynch on 1/22/2025 FIRST: mytimetotravel on 1/22 | RECENT: Charles Moser on 1/23
Comments
I have never had any issues with QCDs, but the website instructions could definitely be clearer. What irritated me was the recent decision made by VG to eliminate the ability to write QCDs from a checkbook on your URA account. Now you have to go back to requesting the check, having it mailed to you, and you remailing it to your charity. no real reason given, just the announcement. Not something I can’t live with but it made zero sense to me.
Another advantage of ETFs over Mutual Funds is the ability to buy ETFs with smaller investments. Example is Vanguard. In Non-IRA accounts many funds have $3,000 minimums. The ETF equivalent does not. Vanguard Personal Advisors Service has been encouraging transferring MFs to ETFs for at least the past 5 years. All my holdings are in ETFs.
Mark: Excellent question. My response...stay the course. When you have your retirement income 100% guaranteed (in our case, through social security and annuities), market fluctuations, while irritating, have no direct impact on your day-to-day lifestyle, but they do sometimes interfere with your ability to enjoy life. Although our income is not affected by market fluctuations, it remains very difficult for me to watch our portfolio decline significantly once you are retired. When that happens, I remind myself of 2020, when a $260K loss in March-May resulted in a recovery by year's end and resulted in positive results for the year.
Excllenet point...but who acually has that much cash set aside? Some I am sure..but not many. Most couldn't take the FOMO of having that much cash sitting "idle."
Amen John. I regularly get my checkups and Iother than being oberweight, I don;t have any crionic illnesses that are not managed (Elevated BP, GERD). I do have a hyatal hernia and a stone (can't remember, but I think Gall Stone,) but my surgeon recommend NOT to do surgery, as neither is causing any issues. Like you, I am more focused on my health than my portfolio.
Mark: There is an old saying that says, "Figures never lie, but sometimes liars figure." The US is not the only country in which political gamesmanship is practiced when reporting economic data, I am sorry to say. I am not familiar with the UK method of reporting economic data, nor am I concerned about it, but I would guess the same shenanigans occur across the pond as well.
CPI is a rigged game, period. When you calculate COLA info and you don't count three of the most important components in the cost of living for most Americans, what is actually being accomplished?
Charles, you will rarely get a positive response on HD to any question related to annuities. With that said, I'm sharing my take on your question, as a person who 1.) Authored/Edited textbooks on Annuities , during my 15 years as a college professor, teaching in Financial Services Professional Education curricula 2.) Owns FIAs 3.) Is happily receiving tax-free income from my Roth IRA Funded annuities. Bonuses on FIAs are not "free money." Bonuses on FIAs cannot be used to pay the taxes due on conversions. Any upfront bonus dollars credited to your account will vest, usually over a 10-year period. That vesting period, in and of itself, is not necessarily negative, as it helps you stick to the commitment to stay invested, which is the purpose of long-term annuities. However, the insurance company giving you bonuses will lower some other feature of the annuity...participation rates, cap rates, etc., to fund the up-front bonus. With that said, doing Roth conversions to purchase annuities for your retirement deserves your attention and consideration if you are a "safety first" investor. I am 10 years older than you, and I retired at age 73 and 4 months. I "turned on" my annuities' income streams in 2024 (2 of them) and 2025 (the other two of them). My wife and I are receiving $36,562.00 in annuity income, added to our $73,340 in Social Security Benefits. (I waited until age 70 to file for my Social Security, to maximize benefits for my wife, who is 4 years younger than me.) This guaranteed joint life income, which is almost twice the amount of our retirement expenses annually, allows us to keep our invested portfolio in equities, maximizing our returns and future legacy for our children. Since we do not need to spend down this portfolio for income, we are free to do so, and since we do not need further fixed income, we do not need to hold bonds in our portfolio. As far as our RMDs are concerned, our annual RMDs are used to fund QCDs. In your case, however, when your RMDs do kick in, the dollars you converted to Roth will no longer be included in the amount upon which your RMDs are calculated. Good Luck with your planning, and remember, opinions are like belly buttons, everyone has one, but only yours matters!
I would add the following... Before you consider spending 4-5 years and thousands of dollars on an education outside of the STEM arena, carefully consider why you are doing it. Is it your "dream" or one you are being pushed into by parents or peer pressure? Liberal Arts Degrees are basically "vanity" degrees. And be very leery of graduate studies if you intend to join academia... especially if you are a white male. The number of PhDs graduated annually in the US is 2-3 times the number of academic faculty openings available, and in the current anti-higher education environment, it will not get better anytime soon. The trend, for at least the last decade, has been to replace tenure-track professors with adjuncts. Have you considered a trade school? There is a crying need for almost all trades today, and you can bet your as_ AI will not be replacing carpenters, plumbers, brick masons, HVAC techs, etc. In addition, you will not be replaced by some lower-paid person from India, the Philippines, or Ireland, if you are pursuing a degree in the formerly lucrative field of computer science. Having spent 54 years in financial services, including the last 15 years in financial professional education, I second the idea of pursuing professional education and designations. In some fields, they are almost a requirement for growth and success.
Comments
I have never had any issues with QCDs, but the website instructions could definitely be clearer. What irritated me was the recent decision made by VG to eliminate the ability to write QCDs from a checkbook on your URA account. Now you have to go back to requesting the check, having it mailed to you, and you remailing it to your charity. no real reason given, just the announcement. Not something I can’t live with but it made zero sense to me.
Post: Disappointed (and annoyed) with Vanguard.
Link to comment from October 24, 2025
Another advantage of ETFs over Mutual Funds is the ability to buy ETFs with smaller investments. Example is Vanguard. In Non-IRA accounts many funds have $3,000 minimums. The ETF equivalent does not. Vanguard Personal Advisors Service has been encouraging transferring MFs to ETFs for at least the past 5 years. All my holdings are in ETFs.
Post: Mutual Funds Vs. ETFs Which do you prefer and Why?
Link to comment from October 24, 2025
Mark: Excellent question. My response...stay the course. When you have your retirement income 100% guaranteed (in our case, through social security and annuities), market fluctuations, while irritating, have no direct impact on your day-to-day lifestyle, but they do sometimes interfere with your ability to enjoy life. Although our income is not affected by market fluctuations, it remains very difficult for me to watch our portfolio decline significantly once you are retired. When that happens, I remind myself of 2020, when a $260K loss in March-May resulted in a recovery by year's end and resulted in positive results for the year.
Post: The Gnashing of Teeth
Link to comment from September 22, 2025
Excllenet point...but who acually has that much cash set aside? Some I am sure..but not many. Most couldn't take the FOMO of having that much cash sitting "idle."
Post: The Gnashing of Teeth
Link to comment from September 22, 2025
Amen John. I regularly get my checkups and Iother than being oberweight, I don;t have any crionic illnesses that are not managed (Elevated BP, GERD). I do have a hyatal hernia and a stone (can't remember, but I think Gall Stone,) but my surgeon recommend NOT to do surgery, as neither is causing any issues. Like you, I am more focused on my health than my portfolio.
Post: The Gnashing of Teeth
Link to comment from September 22, 2025
Mark: There is an old saying that says, "Figures never lie, but sometimes liars figure." The US is not the only country in which political gamesmanship is practiced when reporting economic data, I am sorry to say. I am not familiar with the UK method of reporting economic data, nor am I concerned about it, but I would guess the same shenanigans occur across the pond as well.
Post: Should I Be Concerned?
Link to comment from August 3, 2025
CPI is a rigged game, period. When you calculate COLA info and you don't count three of the most important components in the cost of living for most Americans, what is actually being accomplished?
Post: Should I Be Concerned?
Link to comment from August 3, 2025
In this case, however, the individual wasn't fired for telling the truth. She was fired for exactly the opposite.
Post: Should I Be Concerned?
Link to comment from August 3, 2025
Charles, you will rarely get a positive response on HD to any question related to annuities. With that said, I'm sharing my take on your question, as a person who 1.) Authored/Edited textbooks on Annuities , during my 15 years as a college professor, teaching in Financial Services Professional Education curricula 2.) Owns FIAs 3.) Is happily receiving tax-free income from my Roth IRA Funded annuities. Bonuses on FIAs are not "free money." Bonuses on FIAs cannot be used to pay the taxes due on conversions. Any upfront bonus dollars credited to your account will vest, usually over a 10-year period. That vesting period, in and of itself, is not necessarily negative, as it helps you stick to the commitment to stay invested, which is the purpose of long-term annuities. However, the insurance company giving you bonuses will lower some other feature of the annuity...participation rates, cap rates, etc., to fund the up-front bonus. With that said, doing Roth conversions to purchase annuities for your retirement deserves your attention and consideration if you are a "safety first" investor. I am 10 years older than you, and I retired at age 73 and 4 months. I "turned on" my annuities' income streams in 2024 (2 of them) and 2025 (the other two of them). My wife and I are receiving $36,562.00 in annuity income, added to our $73,340 in Social Security Benefits. (I waited until age 70 to file for my Social Security, to maximize benefits for my wife, who is 4 years younger than me.) This guaranteed joint life income, which is almost twice the amount of our retirement expenses annually, allows us to keep our invested portfolio in equities, maximizing our returns and future legacy for our children. Since we do not need to spend down this portfolio for income, we are free to do so, and since we do not need further fixed income, we do not need to hold bonds in our portfolio. As far as our RMDs are concerned, our annual RMDs are used to fund QCDs. In your case, however, when your RMDs do kick in, the dollars you converted to Roth will no longer be included in the amount upon which your RMDs are calculated. Good Luck with your planning, and remember, opinions are like belly buttons, everyone has one, but only yours matters!
Post: ROTH Conversions and Fixed Rate Annuities
Link to comment from August 3, 2025
I would add the following... Before you consider spending 4-5 years and thousands of dollars on an education outside of the STEM arena, carefully consider why you are doing it. Is it your "dream" or one you are being pushed into by parents or peer pressure? Liberal Arts Degrees are basically "vanity" degrees. And be very leery of graduate studies if you intend to join academia... especially if you are a white male. The number of PhDs graduated annually in the US is 2-3 times the number of academic faculty openings available, and in the current anti-higher education environment, it will not get better anytime soon. The trend, for at least the last decade, has been to replace tenure-track professors with adjuncts. Have you considered a trade school? There is a crying need for almost all trades today, and you can bet your as_ AI will not be replacing carpenters, plumbers, brick masons, HVAC techs, etc. In addition, you will not be replaced by some lower-paid person from India, the Philippines, or Ireland, if you are pursuing a degree in the formerly lucrative field of computer science. Having spent 54 years in financial services, including the last 15 years in financial professional education, I second the idea of pursuing professional education and designations. In some fields, they are almost a requirement for growth and success.
Post: Raising Dough
Link to comment from July 26, 2025