BEWARE: Many times people have lost significant sums in their retirement accounts believing, “this time it’s different.” A year ago I posed the following question to Jeff Ptak a researcher at Morningstar: I have read for years that early retirees should beware of sequence of return risk but I have not read when do you know you are essentially out of the woods when it comes to that risk. https://www.morningstar.com/retirement/how-avoid-outliving-your-retirement-savings-its-all-sequence After researching the matter he wrote,” unlikely: If you made it through the first five years of retirement with investment gains, there was only about a 1 in 25 chance you’d subsequently deplete your savings before reaching the end of retirement, assuming you stuck with the system of fixed real withdrawals. Even after one year of retirement, a gain cut your risk of failure in half.” Also of note in the article he wrote that the highest safe withdrawl rate for a 30 retirement was 3.7%, would occur with only an 20%-50% equity allocation. My guess this percentage could now drop a little further with higher bond returns 18 months later,
Just shy of two years after we bought a new dryer it started acting up. We brought in a repairman and the estimate was several hundred dollar. The manufacturer’s warranty? One year. But because we bought it with our Chase credit card the card doubles a manufacturer’s warranty up to two years after purchase. We, meaning my wife, jumped on working with the credit card company and the repair costs were reimbursed.
We have purposely bought everything with our credit card for years, one for the points, and two for the extended warranty. This is the first time we have utilized the extended warranty.
If I were considering an annuity I would wait to see where the fed rates settle at the top, and rumors are they are ready to start cutting rates. I believe there are more rate increases coming until the federal deficit is addressed. The good thing with interest rates is that unlike stocks there is some pretty accurate advanced notice of where rates are headed.
From AI:… the upcoming general election race in North Carolina is projected by media analysts to potentially exceed $600 million in total spending. Maybe all the money being spent on federal politicians’s electoral dreams would be better spent on feeding and housing their constituents.
Especially beneficial if your children have the discipline to not withdraw the money for 10 years in order to receive the additional tax free compounded returns.
Mark,
When we built our retirement home 10 years ago we had to purchase dozens upon dozens of bulbs for every light fixture. At the time there were a plethora of different type bulbs available, and LEDs were in their infancy. I pondered and pondered as I looked at the options. I finally decided to bite the bullet and bought all LEDs. They were significantly more expensive than other options but I figured they would pay off in the long run. Well I was right. Except in the dead of winter, or in the hottest summer months when the central air runs our bill does not come close to $100 (this for 100% renewable, and our delivery charge is greater than KWH usage charge). We recently received our (very hot) August electric bill and it was $170 and we nearly fainted. But we hear people, including our son complaining of monthly $200-300 bills. Several years ago we looked into solar panels. I was committed to not pull the trigger on installation unless on our return on investment was 10 or less years. When the companies came out and saw how little our usage was they were shocked, and said there was no chance on that time period for ROI.
Regarding your third paragraph: Cost certainty was one of the major factors in our picking plan G, as was from my standpoint, knowing that if I had a significant deductible I would be less likely to address concerns earlier (due to my cheapness) when in fact at that point it would be easier and cheaper to address the issue.
Comments
BEWARE: Many times people have lost significant sums in their retirement accounts believing, “this time it’s different.” A year ago I posed the following question to Jeff Ptak a researcher at Morningstar: I have read for years that early retirees should beware of sequence of return risk but I have not read when do you know you are essentially out of the woods when it comes to that risk. https://www.morningstar.com/retirement/how-avoid-outliving-your-retirement-savings-its-all-sequence After researching the matter he wrote,” unlikely: If you made it through the first five years of retirement with investment gains, there was only about a 1 in 25 chance you’d subsequently deplete your savings before reaching the end of retirement, assuming you stuck with the system of fixed real withdrawals. Even after one year of retirement, a gain cut your risk of failure in half.” Also of note in the article he wrote that the highest safe withdrawl rate for a 30 retirement was 3.7%, would occur with only an 20%-50% equity allocation. My guess this percentage could now drop a little further with higher bond returns 18 months later,
Post: Why Bonds Matter
Link to comment from October 3, 2026
Just shy of two years after we bought a new dryer it started acting up. We brought in a repairman and the estimate was several hundred dollar. The manufacturer’s warranty? One year. But because we bought it with our Chase credit card the card doubles a manufacturer’s warranty up to two years after purchase. We, meaning my wife, jumped on working with the credit card company and the repair costs were reimbursed. We have purposely bought everything with our credit card for years, one for the points, and two for the extended warranty. This is the first time we have utilized the extended warranty.
Post: Laundered
Link to comment from October 3, 2026
If I were considering an annuity I would wait to see where the fed rates settle at the top, and rumors are they are ready to start cutting rates. I believe there are more rate increases coming until the federal deficit is addressed. The good thing with interest rates is that unlike stocks there is some pretty accurate advanced notice of where rates are headed.
Post: Is now the time for an annuity?
Link to comment from October 2, 2026
From AI:… the upcoming general election race in North Carolina is projected by media analysts to potentially exceed $600 million in total spending. Maybe all the money being spent on federal politicians’s electoral dreams would be better spent on feeding and housing their constituents.
Post: Will Congress Wait Until the Last Minute on Social Security?
Link to comment from October 1, 2026
Especially beneficial if your children have the discipline to not withdraw the money for 10 years in order to receive the additional tax free compounded returns.
Post: Sourcing Taxes for Roth Conversions
Link to comment from October 1, 2026
Mark, When we built our retirement home 10 years ago we had to purchase dozens upon dozens of bulbs for every light fixture. At the time there were a plethora of different type bulbs available, and LEDs were in their infancy. I pondered and pondered as I looked at the options. I finally decided to bite the bullet and bought all LEDs. They were significantly more expensive than other options but I figured they would pay off in the long run. Well I was right. Except in the dead of winter, or in the hottest summer months when the central air runs our bill does not come close to $100 (this for 100% renewable, and our delivery charge is greater than KWH usage charge). We recently received our (very hot) August electric bill and it was $170 and we nearly fainted. But we hear people, including our son complaining of monthly $200-300 bills. Several years ago we looked into solar panels. I was committed to not pull the trigger on installation unless on our return on investment was 10 or less years. When the companies came out and saw how little our usage was they were shocked, and said there was no chance on that time period for ROI.
Post: A Very Humble Saving
Link to comment from October 1, 2026
Mark, You nailed my plan.
Post: Sourcing Taxes for Roth Conversions
Link to comment from September 30, 2026
Regarding your third paragraph: Cost certainty was one of the major factors in our picking plan G, as was from my standpoint, knowing that if I had a significant deductible I would be less likely to address concerns earlier (due to my cheapness) when in fact at that point it would be easier and cheaper to address the issue.
Post: Keep an eye on Medigap policies
Link to comment from September 28, 2026
Thats interesting Roy. My son has always said that if money were no object for him he would wear a new pair of socks every day.
Post: Little luxuries
Link to comment from September 28, 2026
Keep up the good work keeping us informed Dick. We’re all better off because of your knowledge and diligence in this arena.
Post: Keep an eye on Medigap policies
Link to comment from September 26, 2026