Nice story, it's hard to project those paychecks, esp when your raise is always in the highest tax bracket and your overall pct starts going up. HSAs are an underutilized financial instrument. They're essentially a way for you to become the insurance company, you get to keep the profits of carrying the reserve instead of ceding it to your health insurer. Frequently people are able to accumulate enough to create income flows that will cover OOP without any extra savings. Only caveat, you have to save those receipts (wish I had been better at this) because then the HSA can act like a Roth, liquidating at the end paying no tax on either the contribution or the gains.
I wouldn't rebuild, esp in CA, where govt is focused on all the wrong things. I'd be scared to find out that I couldn't get a permit for 12-18 months as the wealthy have likely already started the process with lawyers and architects. A good question is what are the best places for a retiree to go to? Most lists I see tend to gloss over the issues that places present.
Very much enjoyed this different way of looking at the world. Can't say I disagree with your conclusions, if you don't plan on staying somewhere 20+ years, renting is often the best option.
White coat hypertension is fairly common. Personally I wouldn't start medication unless I had a follow up visit with a cardiologist. For one because I'd worry that there was something else that a specialist would find but also because lifetime meds always have a residual cost. I keep track of my transactions, via the Empower website, see my net worth, and everything else. It's important because fraudsters can attack your accounts in different ways. I caught someone trying to go after my checking account presenting fake Amazon transactions.
I think if you want that level of service you'd need to hire Mr. Piper, he's a very accomplished consultant. For a free online calculator, the number of settings and the output that gives you way more info than here's the dates, it's great.
I'm in the planning stage, and I've seen something called the Endowment Strategy, you start taking 5% and then adjust by taking 70% of the prior year plus 5% of the current portfolio value. At most you're drawing 5% and it'll ratchet down withdrawals if your portfolio goes awry. You can also set a floor with this method. It also seems to work exceptionally well if you have good pension/SS/annuity income, as you don't actually have to spend the amount generated, but it lets you know that you can if you want to. The strategy was developed to let Uni's calculate how much of their endowment they can spend in a year without causing rapid wide swings. When I fiddle with it, it seems more stable than you would expect, probably because like 80% of bear markets are over in 4 years. And if you have at least 20% in bonds the time frames are more favorable. Any thoughts?
Comments:
Nice story, it's hard to project those paychecks, esp when your raise is always in the highest tax bracket and your overall pct starts going up. HSAs are an underutilized financial instrument. They're essentially a way for you to become the insurance company, you get to keep the profits of carrying the reserve instead of ceding it to your health insurer. Frequently people are able to accumulate enough to create income flows that will cover OOP without any extra savings. Only caveat, you have to save those receipts (wish I had been better at this) because then the HSA can act like a Roth, liquidating at the end paying no tax on either the contribution or the gains.
Post: Our kids do listen to us.
Link to comment from January 22, 2025
Think this is a situation where One Size fits all just doesn't work. More a failure to plan is a plan to fail situation.
Post: Is there a best time to take an RMD? Does matter when?
Link to comment from January 21, 2025
My risk tolerance according to the assessment is what I believe it to be. I wonder if that's unusual?
Post: Do you understand your tolerance for risk? Really, honestly? I’m not sure most of us do. By RDQ
Link to comment from January 18, 2025
I wouldn't rebuild, esp in CA, where govt is focused on all the wrong things. I'd be scared to find out that I couldn't get a permit for 12-18 months as the wealthy have likely already started the process with lawyers and architects. A good question is what are the best places for a retiree to go to? Most lists I see tend to gloss over the issues that places present.
Post: Would You Rebuild?
Link to comment from January 18, 2025
Very much enjoyed this different way of looking at the world. Can't say I disagree with your conclusions, if you don't plan on staying somewhere 20+ years, renting is often the best option.
Post: Home Free
Link to comment from January 16, 2025
White coat hypertension is fairly common. Personally I wouldn't start medication unless I had a follow up visit with a cardiologist. For one because I'd worry that there was something else that a specialist would find but also because lifetime meds always have a residual cost. I keep track of my transactions, via the Empower website, see my net worth, and everything else. It's important because fraudsters can attack your accounts in different ways. I caught someone trying to go after my checking account presenting fake Amazon transactions.
Post: What I Watch
Link to comment from January 16, 2025
Did you check out the graph showing the impact of waiting?
Post: Open Social Security – interesting finding on optimization and mortality tables
Link to comment from January 14, 2025
I think if you want that level of service you'd need to hire Mr. Piper, he's a very accomplished consultant. For a free online calculator, the number of settings and the output that gives you way more info than here's the dates, it's great.
Post: Open Social Security – interesting finding on optimization and mortality tables
Link to comment from January 14, 2025
You're correct it's 30% of the 5%. I should proof read more carefully. 0.7(prior years spend) + 0.3(0.05 x Port. Value).
Post: Spending It
Link to comment from January 13, 2025
I'm in the planning stage, and I've seen something called the Endowment Strategy, you start taking 5% and then adjust by taking 70% of the prior year plus 5% of the current portfolio value. At most you're drawing 5% and it'll ratchet down withdrawals if your portfolio goes awry. You can also set a floor with this method. It also seems to work exceptionally well if you have good pension/SS/annuity income, as you don't actually have to spend the amount generated, but it lets you know that you can if you want to. The strategy was developed to let Uni's calculate how much of their endowment they can spend in a year without causing rapid wide swings. When I fiddle with it, it seems more stable than you would expect, probably because like 80% of bear markets are over in 4 years. And if you have at least 20% in bonds the time frames are more favorable. Any thoughts?
Post: Spending It
Link to comment from January 11, 2025