More power to you. I calculated and could never make an annuity work out for us. It always seemed to cost us money. If you are disciplined, you can do much better putting money in your IRA or Roth and invest it, to make your own annuity. Exactly what I did, and now live off my RMD, as steady yearly income. However, if they work for you, then fine, but annuities of any kind are not for me.
Thanks for the article David. I have always disliked loans, but buying a house or a car, loans were necessary. In fact, when we went for our first mortgage, we were concerned about getting a loan, as we had NO credit history. It all worked out for us. And we should all never try to loan from a credit card company at like 20% and more, that is just wasteful.
Great idea. I budgeted all my life, for 50 years, then in retirement, I flipped the situation and went to NO budget. Fortunately, our SS and our RMD together cover all expenses. So for the last 7years, all has been working out and the fruits of our labor have paid off. I use Quicken so I can get a snapshot of anything at anytime. Everyone should use the method that works for them.
Thanks Howard for your summary report, it is always nice to learn about taxes, and congrats for your volunteering. One thing, my understanding you can deduct his $1600 winnings from his $15,000 losses, so no taxes on the gambling, but you cannot deduct the excess losses. Winnings go on Schedule 1 of 1040, and the losses go on Schedule A Itemized Deductions, so I take in this person's situation, you could not itemize to get the deduction. Just trying to fully understand. Thanks.
Great information Adam and we appreciate all of your discussion. I have chosen to stick with what I call my Buffett rule, and invest all in the USA and most all in the S&P 500 85% and 15% in cash, that is worldly enough for me.
Jonathan, keep writing, we always love to hear from you. I have a similar cancer story, two things I work on, keep a positive attitude, and do NOT concentrate on what we cannot do, but do all we CAN Do and enjoy every minute. Best to you and the Family.
In our family, you had to earn it, and we were advised to always put some of our earnings from 10 years old onward, into the bank. I was fascinated that you earned interest on your money. Dad taught us about the Stock Market.The greatest Joy is giving money away to your church, a good cause and for sure to the children and grandkids and great grands.I would dislike it, but I am positioned to withstand those 10 years and keep my lifestyle at our CCRC.A long story short, after getting laid off at 48, I was able to go into business with my only income, commission based, and it all turned out well. For sure I considered myself a success, working from home in 1994 and everything on my own schedule, started semi retirement at age 60 and eased into full retirement at age 78. I loved what I did, could vacation whenever and as long as I wanted, because of the internet. A great ride and very satisfying growing from electronic design engineer, sales engineer to management, and then to commission based selling of what I learned in the previous 22 years, inkjet printing, fluids parts and printers.We always managed a budget and lived within our means, and at age 60 we stopped budgeting and lived much more freely.Being semi-retired let us spend much more time with our family, and vacations, we loved those National Parks.I am not a believer in Long Term Care Insurance, but always saved that money to self pay, luckily it all has worked out, and whatever we need will come from our investments. I did receive a small pension at age 55, $1000 a month, and saved all of it and turned that into a million dollar fund, to take care of me and my wife. We are both each others caregivers, and when that does not work, our family will take over, and as I said we are in a CCRC with all that is needed.Our family will be most happy and we have shared our Trust with our 3 children and how that works, and in addition I have added guidelines on how to handle, they know where everything is located. We have downsized 2 times, so we feel all is in order, and if the markets continue to be good to investors, the estate will give them all a big boost.A very big thanks to Jonathan for Humble Dollar and all the great information for all of us. We really appreciate all your articles. Best to you and your family.
Overall, I took none of my withdrawals until I reached RMD age, of course not everyone's situation allows that. Once RMD started, I generally take the minimum as directed by the government tables. However, in 2024 I wanted to build up some cash reserves so took the calculated maximum and not raise my IRMMA contribution. It is tricky, but do what works for you. I generally like to let my stocks grow. In the last 56 years it has all worked out, that I had only 9 yearly losses, so most times my nest egg was growing.
As always, very many good ideas for us to consider. I have chosen to be very patient and will wait for the next long Bull Market. Thanks Jonathan for your thoughtful articles and keep doing the best you can, with your great attitude. We appreciate all your articles.
Comments
More power to you. I calculated and could never make an annuity work out for us. It always seemed to cost us money. If you are disciplined, you can do much better putting money in your IRA or Roth and invest it, to make your own annuity. Exactly what I did, and now live off my RMD, as steady yearly income. However, if they work for you, then fine, but annuities of any kind are not for me.
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
Thanks for the article David. I have always disliked loans, but buying a house or a car, loans were necessary. In fact, when we went for our first mortgage, we were concerned about getting a loan, as we had NO credit history. It all worked out for us. And we should all never try to loan from a credit card company at like 20% and more, that is just wasteful.
Post: Winning the Debt Game by David Powell
Link to comment from April 26, 2025
Great idea. I budgeted all my life, for 50 years, then in retirement, I flipped the situation and went to NO budget. Fortunately, our SS and our RMD together cover all expenses. So for the last 7years, all has been working out and the fruits of our labor have paid off. I use Quicken so I can get a snapshot of anything at anytime. Everyone should use the method that works for them.
Post: Insomnia and the Back of an Envelope
Link to comment from April 26, 2025
Thanks Howard for your summary report, it is always nice to learn about taxes, and congrats for your volunteering. One thing, my understanding you can deduct his $1600 winnings from his $15,000 losses, so no taxes on the gambling, but you cannot deduct the excess losses. Winnings go on Schedule 1 of 1040, and the losses go on Schedule A Itemized Deductions, so I take in this person's situation, you could not itemize to get the deduction. Just trying to fully understand. Thanks.
Post: Taxing Situations
Link to comment from April 26, 2025
Great information Adam and we appreciate all of your discussion. I have chosen to stick with what I call my Buffett rule, and invest all in the USA and most all in the S&P 500 85% and 15% in cash, that is worldly enough for me.
Post: No Exception
Link to comment from April 26, 2025
Jonathan, keep writing, we always love to hear from you. I have a similar cancer story, two things I work on, keep a positive attitude, and do NOT concentrate on what we cannot do, but do all we CAN Do and enjoy every minute. Best to you and the Family.
Post: Tasting Retirement
Link to comment from April 26, 2025
Earlier is much better than too late. Keep that plan and I am confident you will be well in retirement. Best to you.
Post: Ask Me a Tough One by Jonathan Clements
Link to comment from April 19, 2025
In our family, you had to earn it, and we were advised to always put some of our earnings from 10 years old onward, into the bank. I was fascinated that you earned interest on your money. Dad taught us about the Stock Market.The greatest Joy is giving money away to your church, a good cause and for sure to the children and grandkids and great grands.I would dislike it, but I am positioned to withstand those 10 years and keep my lifestyle at our CCRC.A long story short, after getting laid off at 48, I was able to go into business with my only income, commission based, and it all turned out well. For sure I considered myself a success, working from home in 1994 and everything on my own schedule, started semi retirement at age 60 and eased into full retirement at age 78. I loved what I did, could vacation whenever and as long as I wanted, because of the internet. A great ride and very satisfying growing from electronic design engineer, sales engineer to management, and then to commission based selling of what I learned in the previous 22 years, inkjet printing, fluids parts and printers.We always managed a budget and lived within our means, and at age 60 we stopped budgeting and lived much more freely.Being semi-retired let us spend much more time with our family, and vacations, we loved those National Parks.I am not a believer in Long Term Care Insurance, but always saved that money to self pay, luckily it all has worked out, and whatever we need will come from our investments. I did receive a small pension at age 55, $1000 a month, and saved all of it and turned that into a million dollar fund, to take care of me and my wife. We are both each others caregivers, and when that does not work, our family will take over, and as I said we are in a CCRC with all that is needed.Our family will be most happy and we have shared our Trust with our 3 children and how that works, and in addition I have added guidelines on how to handle, they know where everything is located. We have downsized 2 times, so we feel all is in order, and if the markets continue to be good to investors, the estate will give them all a big boost.A very big thanks to Jonathan for Humble Dollar and all the great information for all of us. We really appreciate all your articles. Best to you and your family.
Post: Ask Me a Tough One by Jonathan Clements
Link to comment from April 19, 2025
Overall, I took none of my withdrawals until I reached RMD age, of course not everyone's situation allows that. Once RMD started, I generally take the minimum as directed by the government tables. However, in 2024 I wanted to build up some cash reserves so took the calculated maximum and not raise my IRMMA contribution. It is tricky, but do what works for you. I generally like to let my stocks grow. In the last 56 years it has all worked out, that I had only 9 yearly losses, so most times my nest egg was growing.
Post: 4% every year? even this one?
Link to comment from April 12, 2025
As always, very many good ideas for us to consider. I have chosen to be very patient and will wait for the next long Bull Market. Thanks Jonathan for your thoughtful articles and keep doing the best you can, with your great attitude. We appreciate all your articles.
Post: Making Lemonade by Jonathan Clements
Link to comment from April 12, 2025