Personal Finance Advice and Education! (2 Viewers)

[matttyl]

Any reason not to still buy i-bonds right now for this year? No reason to think the rate will go up during the next reset, right?

What’s the harm in waiting until closer to the next rate calculation? I purchased in October, locking in the 9.62 rate but also knowing what the following rate would be. Why not do thru same closer to March?

Giving up 4 months of interest? You can get a normal Treasury somewhere in the 4.7 range for 1 year today.

Maybe I’m misunderstanding how these ibonds work. You get todays rate for the first 6 months and then get whatever the next rate will be for the next 6 months, right? So buying now vs buying in March really makes no difference in your interest, it’s just the timing of those interest payments. The difference is if you delay, you’ll have a better idea of what the 2nd 6 months of interest will be.

There are two interest rates. There's the inflation rate that changes every 6 months. But, there's also a base fixed rate on the bond that is set at time of purchase and lasts the life of the bond. The fixed rate has been 0% for a long time, but, was set at 0.4% for all new purchases in November.

If you wait until the new calc you'll also learn whether it makes sense to wait for a better fixed rate.

Didn’t know that, and I purchased in October when the base rate was 0.

 

[-OZ-]

Right, so it’s just a timing thing. Same total amount in the end. But if I bond rates plummet, maybe you won’t want to do that in March. That’s was my point, though the odds of that are very low.

Yeah, I’d be willing to bet the rate at that point is still higher than my highest yielding savings account. (4.5%). By “bet” I mean by buying I bonds.

So, we keep our ibonds until that happens? I bought mine back before the guaranteed . 4%.

Honestly it’s a tough choice. I won’t sell ours unless we use the money and wouldn’t reasonably be able to pay cash for the thing, or the 5 years is over. Even then, I like the idea of having an inflation protection in retirement. So maybe never sell.

Yeah, I'm looking at a $10k a/c and furnace bill, and was thinking of liquidating for that.

Being federal, my pension has inflation protection built in (sort of).

Same - military pension with health insurance and federal civilian. Still, a little more inflation protection isn’t a bad thing with an otherwise aggressive portfolio.

How close are you to retirement? I've got ~20 years.

Anywhere between 5-15. Probably closer to 15.
I’m not worried about hitting 20 but I would like to get our youngest through college. She’s in 2nd grade. Financially we’ll be good in 5 or less.

 

[-OZ-]

Just a little kick in the nuts. I found an old excel sheet I had back in 2019 when I had invested some in individual stocks. I had over 700 shares of GameStop when it was below $15 - in my oldest son’s coverdell. That would have put all of them through college (state school).

On the plus side, our investments have just about doubled, even after 2022.

 

[Orange&Blue]

This 'crazy' retirement portfolio has just beaten Wall Street for 50 years

This strategy beats the market with less risk, fewer upsets and no 'lost' decades.

www.marketwatch.com

We’re talking about a simple portfolio that absolutely anyone could follow in their own 401(k) or IRA or retirement account. Low cost, no muss, no fuss. And it’s managed to do two powerful things simultaneously.

It’s beaten the standard Wall Street portfolio of 60% U.S. stocks and 40% bonds. Not just last year, when it beat them by an astonishing 7 percentage points, but for half a century.

And it’s done so with way less risk. Fewer upsets. Fewer disasters. And no “lost” decades.

 

[-OZ-]

This 'crazy' retirement portfolio has just beaten Wall Street for 50 years

This strategy beats the market with less risk, fewer upsets and no 'lost' decades.

www.marketwatch.com

We’re talking about a simple portfolio that absolutely anyone could follow in their own 401(k) or IRA or retirement account. Low cost, no muss, no fuss. And it’s managed to do two powerful things simultaneously.

It’s beaten the standard Wall Street portfolio of 60% U.S. stocks and 40% bonds. Not just last year, when it beat them by an astonishing 7 percentage points, but for half a century.

And it’s done so with way less risk. Fewer upsets. Fewer disasters. And no “lost” decades.

Makes sense, although I question whether “everyone” has access to commodities in their 401k. We don’t, Although you can just keep that in IRAs instead. Commodities are the one asset I haven’t bothered with, probably mostly due to recency bias.

 

[Buckna]

This 'crazy' retirement portfolio has just beaten Wall Street for 50 years

This strategy beats the market with less risk, fewer upsets and no 'lost' decades.

www.marketwatch.com

We’re talking about a simple portfolio that absolutely anyone could follow in their own 401(k) or IRA or retirement account. Low cost, no muss, no fuss. And it’s managed to do two powerful things simultaneously.

It’s beaten the standard Wall Street portfolio of 60% U.S. stocks and 40% bonds. Not just last year, when it beat them by an astonishing 7 percentage points, but for half a century.

And it’s done so with way less risk. Fewer upsets. Fewer disasters. And no “lost” decades.

Makes sense, although I question whether “everyone” has access to commodities in their 401k. We don’t, Although you can just keep that in IRAs instead. Commodities are the one asset I haven’t bothered with, probably mostly due to recency bias.

Curious why he starts his back tested calculations in 1973? The article does not say other than it gives a nice 50 year round number. Starting off at the beginning of a “lost decade” with high inflation seems pretty disingenuous at best, that period would goose commodity returns from the start (how would the avg Joe even invest in commodities back then anyway?) Gold also had a massively historic run in the 70’s peaking in 1980 and not reaching that level again for another 30 years (talk about a lost decade or two.) You are also ending last year in the 1st big inflationary year in decades, after a stock market downturn, and the worst bond year in recorded history, what did these avg’s look like exactly a year ago?

 

[Runkle]

This 'crazy' retirement portfolio has just beaten Wall Street for 50 years

This strategy beats the market with less risk, fewer upsets and no 'lost' decades.

www.marketwatch.com

We’re talking about a simple portfolio that absolutely anyone could follow in their own 401(k) or IRA or retirement account. Low cost, no muss, no fuss. And it’s managed to do two powerful things simultaneously.

It’s beaten the standard Wall Street portfolio of 60% U.S. stocks and 40% bonds. Not just last year, when it beat them by an astonishing 7 percentage points, but for half a century.

And it’s done so with way less risk. Fewer upsets. Fewer disasters. And no “lost” decades.

Makes sense, although I question whether “everyone” has access to commodities in their 401k. We don’t, Although you can just keep that in IRAs instead. Commodities are the one asset I haven’t bothered with, probably mostly due to recency bias.

Curious why he starts his back tested calculations in 1973? The article does not say other than it gives a nice 50 year round number. Starting off at the beginning of a “lost decade” with high inflation seems pretty disingenuous at best, that period would goose commodity returns from the start (how would the avg Joe even invest in commodities back then anyway?) Gold also had a massively historic run in the 70’s peaking in 1980 and not reaching that level again for another 30 years (talk about a lost decade or two.) You are also ending last year in the 1st big inflationary year in decades, after a stock market downturn, and the worst bond year in recorded history, what did these avg’s look like exactly a year ago?

Dunno for sure, but, gold was fully decoupled from the dollar by Nixon in the early 70s. Analysis of the price of gold before that isn't effective as the gold standard forced the exchange rate.

 

[Andrew74]

This 'crazy' retirement portfolio has just beaten Wall Street for 50 years

This strategy beats the market with less risk, fewer upsets and no 'lost' decades.

www.marketwatch.com

We’re talking about a simple portfolio that absolutely anyone could follow in their own 401(k) or IRA or retirement account. Low cost, no muss, no fuss. And it’s managed to do two powerful things simultaneously.

It’s beaten the standard Wall Street portfolio of 60% U.S. stocks and 40% bonds. Not just last year, when it beat them by an astonishing 7 percentage points, but for half a century.

And it’s done so with way less risk. Fewer upsets. Fewer disasters. And no “lost” decades.

Makes sense, although I question whether “everyone” has access to commodities in their 401k. We don’t, Although you can just keep that in IRAs instead. Commodities are the one asset I haven’t bothered with, probably mostly due to recency bias.

Curious why he starts his back tested calculations in 1973? The article does not say other than it gives a nice 50 year round number. Starting off at the beginning of a “lost decade” with high inflation seems pretty disingenuous at best, that period would goose commodity returns from the start (how would the avg Joe even invest in commodities back then anyway?) Gold also had a massively historic run in the 70’s peaking in 1980 and not reaching that level again for another 30 years (talk about a lost decade or two.) You are also ending last year in the 1st big inflationary year in decades, after a stock market downturn, and the worst bond year in recorded history, what did these avg’s look like exactly a year ago?

Besides this the thing is based on the calculations of the guy pushing the strategy. And no numbers given at all. Plus investing in commodities outside a tax-deferred account is a ***** for taxes (as is gold).

 

[jm192]

Any reason not to still buy i-bonds right now for this year? No reason to think the rate will go up during the next reset, right?

A few reasons

1. If you buy them near the end of the month--you still get credit for the entire month. I'd say you want to purchase around the 26th/27th to give it a few extra days for the purchase to clear.

2. If you buy it at the end of the 6 month period--you still get 6 months at that interest rate. So come April, we'll know what the new rate is going to be. You can buy at that time--locking up 6 months of the current rate AND know what your next rate is going to be. We'll never know what they're doing with the fixed rate.

If the new rate falls off a cliff, then you may want to hold off. Treasury bills have come up quite a bit. And we're at the point that there's a real question of if the extra % points on I-bonds are worth the full year of illiquidity.

IF you're going to buy them and think you'll need the money right at a year--there's the benefit of going ahead and starting the 1 year clock by buying at the end of January. But at that point, I'd seriously think long and hard about just getting into shorter term Treasury Bills.

 

[ChiefD]

Do any of you guys know of a calculator that can extrapolate lifetime earnings and savings? Or a way to spreadsheet this?

Here's why I ask:

I was having a discussion with my 15 year old freshman last night. He's a really smart kid - has his own business (online lure company), saves money, wants to make money, gets really good grades at school....etc....

But, he HATES school. Has never liked school but he's so smart that he can get straight A's with minimal effort. He's unsure on if he wants to go to college - he is one of those kids that can fix anything mechanically as well. He's a lot like me to be honest in that regard. He would be great in a trade as well and we are certainly not doing to dissuade him from that if that's what he chooses.

Since he's a lot like me, I didn't really apply myself at school. I made good grades, graduated college, and have a decent enough job. BUT, knowing what I know now, at my age I should be making twice what I make and if I would have had me as a dad, I would have saved a ton of money by now and retire at 55. So what I'm trying to do is not let him be like me.

What started the conversation was his math teacher sent us an email saying she's going to recommend he sign up for honors Algebra II next year. He doesn't really want to do it because....it's gonna be hard.....he doesn't want to be stressed.....blah....blah.....blah.

So we got into a discussion on when I was his age I always took the easy way out on school. Nobody was around to help me or talk to me about WHY you challenge yourself and what your long term potential could be for your life.

So I was thinking if there was an easy way to show him a spreadsheet or calculator that can extrapolate earnings and savings from say age 21 (when he would graduate from school) to age 55. And then be able to change the variables like retirement age or savings rate?

I'm too dumb to design this myself. Any help or any calculators you know of? Thanks.

 

[ChiefD]

Bump.

 

[ConstruxBoy]

Calculator.net has a bunch of good calculators. See if there is one that works for you.

Link

 

[Sand]

Do any of you guys know of a calculator that can extrapolate lifetime earnings and savings? Or a way to spreadsheet this?

Here's why I ask:

I was having a discussion with my 15 year old freshman last night. He's a really smart kid - has his own business (online lure company), saves money, wants to make money, gets really good grades at school....etc....

But, he HATES school. Has never liked school but he's so smart that he can get straight A's with minimal effort. He's unsure on if he wants to go to college - he is one of those kids that can fix anything mechanically as well. He's a lot like me to be honest in that regard. He would be great in a trade as well and we are certainly not doing to dissuade him from that if that's what he chooses.

Since he's a lot like me, I didn't really apply myself at school. I made good grades, graduated college, and have a decent enough job. BUT, knowing what I know now, at my age I should be making twice what I make and if I would have had me as a dad, I would have saved a ton of money by now and retire at 55. So what I'm trying to do is not let him be like me.

What started the conversation was his math teacher sent us an email saying she's going to recommend he sign up for honors Algebra II next year. He doesn't really want to do it because....it's gonna be hard.....he doesn't want to be stressed.....blah....blah.....blah.

So we got into a discussion on when I was his age I always took the easy way out on school. Nobody was around to help me or talk to me about WHY you challenge yourself and what your long term potential could be for your life.

So I was thinking if there was an easy way to show him a spreadsheet or calculator that can extrapolate earnings and savings from say age 21 (when he would graduate from school) to age 55. And then be able to change the variables like retirement age or savings rate?

I'm too dumb to design this myself. Any help or any calculators you know of? Thanks.

Retirement Calculator: Estimate How Much You Need To Save

Use Bankrate.com's free tools, expert analysis, and award-winning content to make smarter financial decisions. Explore personal finance topics including credit cards, investments, identity protection, autos, retirement, credit reports, and so much more.

www.bankrate.com

 

[ChiefD]

Do any of you guys know of a calculator that can extrapolate lifetime earnings and savings? Or a way to spreadsheet this?

Here's why I ask:

I was having a discussion with my 15 year old freshman last night. He's a really smart kid - has his own business (online lure company), saves money, wants to make money, gets really good grades at school....etc....

But, he HATES school. Has never liked school but he's so smart that he can get straight A's with minimal effort. He's unsure on if he wants to go to college - he is one of those kids that can fix anything mechanically as well. He's a lot like me to be honest in that regard. He would be great in a trade as well and we are certainly not doing to dissuade him from that if that's what he chooses.

Since he's a lot like me, I didn't really apply myself at school. I made good grades, graduated college, and have a decent enough job. BUT, knowing what I know now, at my age I should be making twice what I make and if I would have had me as a dad, I would have saved a ton of money by now and retire at 55. So what I'm trying to do is not let him be like me.

What started the conversation was his math teacher sent us an email saying she's going to recommend he sign up for honors Algebra II next year. He doesn't really want to do it because....it's gonna be hard.....he doesn't want to be stressed.....blah....blah.....blah.

So we got into a discussion on when I was his age I always took the easy way out on school. Nobody was around to help me or talk to me about WHY you challenge yourself and what your long term potential could be for your life.

So I was thinking if there was an easy way to show him a spreadsheet or calculator that can extrapolate earnings and savings from say age 21 (when he would graduate from school) to age 55. And then be able to change the variables like retirement age or savings rate?

I'm too dumb to design this myself. Any help or any calculators you know of? Thanks.

Retirement Calculator: Estimate How Much You Need To Save

Use Bankrate.com's free tools, expert analysis, and award-winning content to make smarter financial decisions. Explore personal finance topics including credit cards, investments, identity protection, autos, retirement, credit reports, and so much more.

www.bankrate.com

Perfect. Thank you!

 

[The Z Machine]

Do any of you guys know of a calculator that can extrapolate lifetime earnings and savings? Or a way to spreadsheet this?

Here's why I ask:

I was having a discussion with my 15 year old freshman last night. He's a really smart kid - has his own business (online lure company), saves money, wants to make money, gets really good grades at school....etc....

But, he HATES school. Has never liked school but he's so smart that he can get straight A's with minimal effort. He's unsure on if he wants to go to college - he is one of those kids that can fix anything mechanically as well. He's a lot like me to be honest in that regard. He would be great in a trade as well and we are certainly not doing to dissuade him from that if that's what he chooses.

Since he's a lot like me, I didn't really apply myself at school. I made good grades, graduated college, and have a decent enough job. BUT, knowing what I know now, at my age I should be making twice what I make and if I would have had me as a dad, I would have saved a ton of money by now and retire at 55. So what I'm trying to do is not let him be like me.

What started the conversation was his math teacher sent us an email saying she's going to recommend he sign up for honors Algebra II next year. He doesn't really want to do it because....it's gonna be hard.....he doesn't want to be stressed.....blah....blah.....blah.

So we got into a discussion on when I was his age I always took the easy way out on school. Nobody was around to help me or talk to me about WHY you challenge yourself and what your long term potential could be for your life.

So I was thinking if there was an easy way to show him a spreadsheet or calculator that can extrapolate earnings and savings from say age 21 (when he would graduate from school) to age 55. And then be able to change the variables like retirement age or savings rate?

I'm too dumb to design this myself. Any help or any calculators you know of? Thanks.

He sounds like a great candidate to be a mechanical engineer. Working a trade can be hard on the body as I'm sure you know. Mechanical engineering could allow him to work with his hands and his brain without taking such a physical toll on his back, knees, etc.

 

[dino259]

Do any of you guys know of a calculator that can extrapolate lifetime earnings and savings? Or a way to spreadsheet this?

Here's why I ask:

I was having a discussion with my 15 year old freshman last night. He's a really smart kid - has his own business (online lure company), saves money, wants to make money, gets really good grades at school....etc....

But, he HATES school. Has never liked school but he's so smart that he can get straight A's with minimal effort. He's unsure on if he wants to go to college - he is one of those kids that can fix anything mechanically as well. He's a lot like me to be honest in that regard. He would be great in a trade as well and we are certainly not doing to dissuade him from that if that's what he chooses.

Since he's a lot like me, I didn't really apply myself at school. I made good grades, graduated college, and have a decent enough job. BUT, knowing what I know now, at my age I should be making twice what I make and if I would have had me as a dad, I would have saved a ton of money by now and retire at 55. So what I'm trying to do is not let him be like me.

What started the conversation was his math teacher sent us an email saying she's going to recommend he sign up for honors Algebra II next year. He doesn't really want to do it because....it's gonna be hard.....he doesn't want to be stressed.....blah....blah.....blah.

So we got into a discussion on when I was his age I always took the easy way out on school. Nobody was around to help me or talk to me about WHY you challenge yourself and what your long term potential could be for your life.

So I was thinking if there was an easy way to show him a spreadsheet or calculator that can extrapolate earnings and savings from say age 21 (when he would graduate from school) to age 55. And then be able to change the variables like retirement age or savings rate?

I'm too dumb to design this myself. Any help or any calculators you know of? Thanks.

The earnings and savings side is good information. To dig deeper what is his motivation? Not everyone is motivated by money. Not every one can run a business. What combination of both will challenge him to do the most?

 

[ChiefD]

Do any of you guys know of a calculator that can extrapolate lifetime earnings and savings? Or a way to spreadsheet this?

Here's why I ask:

I was having a discussion with my 15 year old freshman last night. He's a really smart kid - has his own business (online lure company), saves money, wants to make money, gets really good grades at school....etc....

But, he HATES school. Has never liked school but he's so smart that he can get straight A's with minimal effort. He's unsure on if he wants to go to college - he is one of those kids that can fix anything mechanically as well. He's a lot like me to be honest in that regard. He would be great in a trade as well and we are certainly not doing to dissuade him from that if that's what he chooses.

Since he's a lot like me, I didn't really apply myself at school. I made good grades, graduated college, and have a decent enough job. BUT, knowing what I know now, at my age I should be making twice what I make and if I would have had me as a dad, I would have saved a ton of money by now and retire at 55. So what I'm trying to do is not let him be like me.

What started the conversation was his math teacher sent us an email saying she's going to recommend he sign up for honors Algebra II next year. He doesn't really want to do it because....it's gonna be hard.....he doesn't want to be stressed.....blah....blah.....blah.

So we got into a discussion on when I was his age I always took the easy way out on school. Nobody was around to help me or talk to me about WHY you challenge yourself and what your long term potential could be for your life.

So I was thinking if there was an easy way to show him a spreadsheet or calculator that can extrapolate earnings and savings from say age 21 (when he would graduate from school) to age 55. And then be able to change the variables like retirement age or savings rate?

I'm too dumb to design this myself. Any help or any calculators you know of? Thanks.

He sounds like a great candidate to be a mechanical engineer. Working a trade can be hard on the body as I'm sure you know. Mechanical engineering could allow him to work with his hands and his brain without taking such a physical toll on his back, knees, etc.

Yeah, we have definitely talked about that. And Kansas City is a great place for engineering firms. We have Burns and McDonell, Black & Veatch and a host of others.

 

[ChiefD]

Do any of you guys know of a calculator that can extrapolate lifetime earnings and savings? Or a way to spreadsheet this?

Here's why I ask:

I was having a discussion with my 15 year old freshman last night. He's a really smart kid - has his own business (online lure company), saves money, wants to make money, gets really good grades at school....etc....

But, he HATES school. Has never liked school but he's so smart that he can get straight A's with minimal effort. He's unsure on if he wants to go to college - he is one of those kids that can fix anything mechanically as well. He's a lot like me to be honest in that regard. He would be great in a trade as well and we are certainly not doing to dissuade him from that if that's what he chooses.

Since he's a lot like me, I didn't really apply myself at school. I made good grades, graduated college, and have a decent enough job. BUT, knowing what I know now, at my age I should be making twice what I make and if I would have had me as a dad, I would have saved a ton of money by now and retire at 55. So what I'm trying to do is not let him be like me.

What started the conversation was his math teacher sent us an email saying she's going to recommend he sign up for honors Algebra II next year. He doesn't really want to do it because....it's gonna be hard.....he doesn't want to be stressed.....blah....blah.....blah.

So we got into a discussion on when I was his age I always took the easy way out on school. Nobody was around to help me or talk to me about WHY you challenge yourself and what your long term potential could be for your life.

So I was thinking if there was an easy way to show him a spreadsheet or calculator that can extrapolate earnings and savings from say age 21 (when he would graduate from school) to age 55. And then be able to change the variables like retirement age or savings rate?

I'm too dumb to design this myself. Any help or any calculators you know of? Thanks.

The earnings and savings side is good information. To dig deeper what is his motivation? Not everyone is motivated by money. Not every one can run a business. What combination of both will challenge him to do the most?

He's definitely motivated by money and the ability to retire early. This kid is a fisherman, and he wants to spend every possible hour on the water. We've talked of how to make a living in fishing, the outdoors, etc.

As Z mentioned above, engineering would also be a good field for him. I've also talked to him about Environmental Sciences, since he can go a lot of different directions with that. In reality I see him moving up north to the Wisconsin/Minnesota area and work in something up there.

 

[Desert_Power]

He's definitely motivated by money and the ability to retire early. This kid is a fisherman, and he wants to spend every possible hour on the water. We've talked of how to make a living in fishing, the outdoors, etc.

And you said he already has a fishing lure business? These days you can do so much with online businesses like drop-shipping and affiliate marketing as long as you can create good content. I'd be careful not to dissuade that path if he really enjoys it.

When you are playing the retirement calculator you may also notice the impacts of compounding on any savings he puts aside today will be quite high. Most kids that go to college will not start saving until around age 22 assuming no debt.

 

[The Z Machine]

OK FBG brethren. What's the best or easiest way to search for bundled home+auto insurance?

 

[Gawain]

OK FBG brethren. What's the best or easiest way to search for bundled home+auto insurance?

If you're a Costco member, their insurance program can't be beat (in my experience).
If you're not a member, it still might be cheaper with the membership fee included.

 

[Chadstroma]

OK FBG brethren. What's the best or easiest way to search for bundled home+auto insurance?

Get with an insurance broker. They can offer the same bundled discounts as a captive agent but with me the best pricing came with two different carriers. Just like a mortgage broker, they can shop multiple companies for you. They also can reshop you year over year rather than try to hit up a bunch of agents/companies. Insurance companies can swing their premiums greatly based on adjusting risks- they may want to add more policies of a certain kind/location or shed some and thus set their premiums accordingly. If you are with a captive agent your only option is to leave and find a new one.

For putting in a claim, you will tend to get more help from a broker than a captive agent. When I had my accident under Allstate, which we had for years before ever putting a claim in, they fought me tooth and nail in ridiculous fashion. I went to my agent and she told me that she had no influence at all even though our family on my sisters side all used her- so an additional 4 households worth of bundled insurance and nothing. I had to pull comps myself and still they kept fighting and no help from the agent. With a broker, they actually have a little more leverage because they can pressure them by telling them that they will not send the company any more business if they feel they are not treating their clients right.

My personal agent is by far the most knowledgeable insurance guy I have ever talked to and I have talked to a TON over the years being what I do for a living. You can look around but Goosehead is the biggest insurance broker agency out there (my guy is not with them- FYI)

 

[jm192]

Did our Roth IRA's this week. Bought more international stock to hedge the massive US Large cap tilt.

Current Asset Allocation:

US Lg Cap: 68%
Total INT: 20%
Bonds: 12% (All I-Bonds)

What's everyone else at?

 

[SFBayDuck]

Did our Roth IRA's this week. Bought more international stock to hedge the massive US Large cap tilt.

Current Asset Allocation:

US Lg Cap: 68%
Total INT: 20%
Bonds: 12% (All I-Bonds)

What's everyone else at?

Yesterday I shifted some from an SP 500 fund to bonds, so as of now I'm at
63% US equities (40% large cap, 12% mid, 11% small)
15% Int'l (10% developed, 5% emerging)
15% bonds
5% alternatives (GLD, REITs)
2% cash

Considering shifting maybe 5% from US to int'l, likely emerging markets.

 

[The Z Machine]

OK FBG brethren. What's the best or easiest way to search for bundled home+auto insurance?

Get with an insurance broker. They can offer the same bundled discounts as a captive agent but with me the best pricing came with two different carriers. Just like a mortgage broker, they can shop multiple companies for you. They also can reshop you year over year rather than try to hit up a bunch of agents/companies. Insurance companies can swing their premiums greatly based on adjusting risks- they may want to add more policies of a certain kind/location or shed some and thus set their premiums accordingly. If you are with a captive agent your only option is to leave and find a new one.

For putting in a claim, you will tend to get more help from a broker than a captive agent. When I had my accident under Allstate, which we had for years before ever putting a claim in, they fought me tooth and nail in ridiculous fashion. I went to my agent and she told me that she had no influence at all even though our family on my sisters side all used her- so an additional 4 households worth of bundled insurance and nothing. I had to pull comps myself and still they kept fighting and no help from the agent. With a broker, they actually have a little more leverage because they can pressure them by telling them that they will not send the company any more business if they feel they are not treating their clients right.

My personal agent is by far the most knowledgeable insurance guy I have ever talked to and I have talked to a TON over the years being what I do for a living. You can look around but Goosehead is the biggest insurance broker agency out there (my guy is not with them- FYI)

Great advice. How would I find an independent broker?

 

[Chadstroma]

OK FBG brethren. What's the best or easiest way to search for bundled home+auto insurance?

Get with an insurance broker. They can offer the same bundled discounts as a captive agent but with me the best pricing came with two different carriers. Just like a mortgage broker, they can shop multiple companies for you. They also can reshop you year over year rather than try to hit up a bunch of agents/companies. Insurance companies can swing their premiums greatly based on adjusting risks- they may want to add more policies of a certain kind/location or shed some and thus set their premiums accordingly. If you are with a captive agent your only option is to leave and find a new one.

For putting in a claim, you will tend to get more help from a broker than a captive agent. When I had my accident under Allstate, which we had for years before ever putting a claim in, they fought me tooth and nail in ridiculous fashion. I went to my agent and she told me that she had no influence at all even though our family on my sisters side all used her- so an additional 4 households worth of bundled insurance and nothing. I had to pull comps myself and still they kept fighting and no help from the agent. With a broker, they actually have a little more leverage because they can pressure them by telling them that they will not send the company any more business if they feel they are not treating their clients right.

My personal agent is by far the most knowledgeable insurance guy I have ever talked to and I have talked to a TON over the years being what I do for a living. You can look around but Goosehead is the biggest insurance broker agency out there (my guy is not with them- FYI)

Great advice. How would I find an independent broker?

Beyond Google "insurance broker" I don't have any great insight. Captive agencies will come up so you will have to dig through it a little.

 

[Buck Bradcanon]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

 

[Sand]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

Theoretically you'll get this back when collecting SS. The base distribution rate for SS went up about the same for 2023.

The one that's going to get me is the new 2024 rule for 401k catch up contributions. Above a certain AGI you can't stuff the catch up into tax deferred anymore. It has to be a Roth. If your company offers a Roth. Sucks.

 

[Buck Bradcanon]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

Theoretically you'll get this back when collecting SS. The base distribution rate for SS went up about the same for 2023.

The one that's going to get me is the new 2024 rule for 401k catch up contributions. Above a certain AGI you can't stuff the catch up into tax deferred anymore. It has to be a Roth. If your company offers a Roth. Sucks.

Good point on SS thanks.

 

[The Z Machine]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

Theoretically you'll get this back when collecting SS. The base distribution rate for SS went up about the same for 2023.

The one that's going to get me is the new 2024 rule for 401k catch up contributions. Above a certain AGI you can't stuff the catch up into tax deferred anymore. It has to be a Roth. If your company offers a Roth. Sucks.

I always think, "man, I'm nowhere close to catch up portion of 401k. That's for old people." Then I realize I'm less than 8 years away from that 50 year old mark. Ugh.

 

[Sand]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

Theoretically you'll get this back when collecting SS. The base distribution rate for SS went up about the same for 2023.

The one that's going to get me is the new 2024 rule for 401k catch up contributions. Above a certain AGI you can't stuff the catch up into tax deferred anymore. It has to be a Roth. If your company offers a Roth. Sucks.

I always think, "man, I'm nowhere close to catch up portion of 401k. That's for old people." Then I realize I'm less than 8 years away from that 50 year old mark. Ugh.

Dammit, where is that middle finger emoji when you need it?

 

[shuke]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

Theoretically you'll get this back when collecting SS. The base distribution rate for SS went up about the same for 2023.

The one that's going to get me is the new 2024 rule for 401k catch up contributions. Above a certain AGI you can't stuff the catch up into tax deferred anymore. It has to be a Roth. If your company offers a Roth. Sucks.

Details?

 

[jm192]

Work sent us an E-mail saying they’re changing the 401K. We currently have a bunch of different ETF’s. Very good ones, low expense ratios.

Sounds like they’re moving to mutual funds.

Maybe it’ll be fine. But it makes me anxious we’re going to get way higher expense ratios

 

[ConstruxBoy]

Work sent us an E-mail saying they’re changing the 401K. We currently have a bunch of different ETF’s. Very good ones, low expense ratios.

Sounds like they’re moving to mutual funds.

Maybe it’ll be fine. But it makes me anxious we’re going to get way higher expense ratios

Boooo

 

[Juxtatarot]

If retiring before Medicare and having to purchase health insurance in the individual marketplace, what would be a reasonable budgetary expense for some type of high-deductible plan? Assume reasonably good health and age in the high 50s/low 60s.

 

[stbugs]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

Theoretically you'll get this back when collecting SS. The base distribution rate for SS went up about the same for 2023.

The one that's going to get me is the new 2024 rule for 401k catch up contributions. Above a certain AGI you can't stuff the catch up into tax deferred anymore. It has to be a Roth. If your company offers a Roth. Sucks.

I read about that and I’m pissed. With both of us working, I loved the catch up contributions but have only been able to used it a couple years and now this. Since we both work, I want the pre-tax now. This sucks because any new income like this is taxed at our highest rate.

I guess I should be happy we can actually do some Roth contributions now but I pay enough taxes as is. As W-2 people, we don’t have all the fun ways the actually rich people have to avoid taxes.

 

[-OZ-]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

Theoretically you'll get this back when collecting SS. The base distribution rate for SS went up about the same for 2023.

The one that's going to get me is the new 2024 rule for 401k catch up contributions. Above a certain AGI you can't stuff the catch up into tax deferred anymore. It has to be a Roth. If your company offers a Roth. Sucks.

I always think, "man, I'm nowhere close to catch up portion of 401k. That's for old people." Then I realize I'm less than 8 years away from that 50 year old mark. Ugh.

Get off my lawn.
I’m only 3 years away.

 

[-OZ-]

Did our Roth IRA's this week. Bought more international stock to hedge the massive US Large cap tilt.

Current Asset Allocation:

US Lg Cap: 68%
Total INT: 20%
Bonds: 12% (All I-Bonds)

What's everyone else at?

Yesterday I shifted some from an SP 500 fund to bonds, so as of now I'm at
63% US equities (40% large cap, 12% mid, 11% small)
15% Int'l (10% developed, 5% emerging)
15% bonds
5% alternatives (GLD, REITs)
2% cash

Considering shifting maybe 5% from US to int'l, likely emerging markets.

I’ve lost track of our overall allocation, will check again March 31 at the end of the first quarter.

Possibly the worst part about remodeling our bathroom in March is not being able to max out the Roth IRAs early.

 

[Andrew74]

This is prolly low hanging fruit to you sharks but I just looked up the SS tax cap for 2023 and saw its up by 9%(!!!) ugh to a taxable salary base of $160,200. At 6.2% thats another $818 out the door.

Oh well. Just fyi.

Theoretically you'll get this back when collecting SS. The base distribution rate for SS went up about the same for 2023.

The one that's going to get me is the new 2024 rule for 401k catch up contributions. Above a certain AGI you can't stuff the catch up into tax deferred anymore. It has to be a Roth. If your company offers a Roth. Sucks.

I figure by the time I can collect SS, it will be means tested and I’ll get shafted. Just like I get shafted for turning 50 in 2024. Dirty bastards.

 

[jm192]

Producer Price Index came back higher than expected.

I-Bonds may wind up having 1 more 6 month run.

 

[-OZ-]

Producer Price Index came back higher than expected.

I-Bonds may wind up having 1 more 6 month run.

Maybe.
I’m probably just keeping enough in I bonds to buy an SUV (highlander or telluride probably) next year. But won’t be adding this year.

 

[jm192]

Producer Price Index came back higher than expected.

I-Bonds may wind up having 1 more 6 month run.

Maybe.
I’m probably just keeping enough in I bonds to buy an SUV (highlander or telluride probably) next year. But won’t be adding this year.

I'm with you. It's unlikely the rate comes back high enough for me to buy this year. But a little better chance than I thought there was. If we see another 6.5x+, I may throw in 1 last time.

 

[matttyl]

If retiring before Medicare and having to purchase health insurance in the individual marketplace, what would be a reasonable budgetary expense for some type of high-deductible plan? Assume reasonably good health and age in the high 50s/low 60s.

Health insurance agent here. First and foremost - Be very careful about what individual policy you purchase if going that route. Here in VA the only individual policies available have a very limited HMO network. While hospitals may accept it, many doctors (especially specialists) do not. They are also very regional, so it’s a Virginia only network - can’t go to Johns Hopkins just up the road.

Next, good health no longer matters. Everyone gets the same rate (based on age) regardless of health in the (ACA compliant) individual market.

Having said all that, premiums on the individual exchange are based on income. If you have slow AGI (technically MAGI) you could expect to pay only 3-5% of your magi at most for a silver tier plan. If your magi is higher, it could go up to I think 9.5% at most. Meaning a married couple making $100k magi should not be paying more than 9,500 a year (about 800 a month) for a silver tier plan. But again, that plan could be crappy.

If retiring, look at the cost of cobra and see if that’s an option at least until the next calendar (deductible) year. If not a crazy rate, consider it for the 18 months you could be on cobra.

 

[Mitchie]

Question, a friend of mine inherited a good amount of money and has asked me for advice. I happen to know a decent amount about finance but don't want to have responsibility for telling her what to do with her money. If she didn't want to get a financial advisor, what would be her best option for getting assistance?

 

[Chadstroma]

Question, a friend of mine inherited a good amount of money and has asked me for advice. I happen to know a decent amount about finance but don't want to have responsibility for telling her what to do with her money. If she didn't want to get a financial advisor, what would be her best option for getting assistance?

A financial advisor is the only licensed person to go to for real advice. She can go to a bank or credit union but that won't be advice as much as selling them on wealth management. Anyone who knows enough to give real actual advice and guidance would know that if they aren't licensed they can't give the advice and guidance. For those who think they know enough but don't.... they will be the ones to give the advice and guidance.

Also, "a good amount" can mean very different things to different people as it is very subjective. If we are talking $50K that is one thing.... and $1MM is another. On one end, common sense and maybe picking up a decent personal finance book would be enough and on the other end they would be foolish to not get professional help.

 

[Mitchie]

Question, a friend of mine inherited a good amount of money and has asked me for advice. I happen to know a decent amount about finance but don't want to have responsibility for telling her what to do with her money. If she didn't want to get a financial advisor, what would be her best option for getting assistance?

A financial advisor is the only licensed person to go to for real advice. She can go to a bank or credit union but that won't be advice as much as selling them on wealth management. Anyone who knows enough to give real actual advice and guidance would know that if they aren't licensed they can't give the advice and guidance. For those who think they know enough but don't.... they will be the ones to give the advice and guidance.

Also, "a good amount" can mean very different things to different people as it is very subjective. If we are talking $50K that is one thing.... and $1MM is another. On one end, common sense and maybe picking up a decent personal finance book would be enough and on the other end they would be foolish to not get professional help.

thanks, i guess my question was more along the lines of if there's another option that is less active and lower fee than financial advisor, i thought maybe Vanguard or Fidelity offered something along those lines, I guess I can call them directly just wondering if there were other options I wasn't aware of.

 

[Chadstroma]

Question, a friend of mine inherited a good amount of money and has asked me for advice. I happen to know a decent amount about finance but don't want to have responsibility for telling her what to do with her money. If she didn't want to get a financial advisor, what would be her best option for getting assistance?

A financial advisor is the only licensed person to go to for real advice. She can go to a bank or credit union but that won't be advice as much as selling them on wealth management. Anyone who knows enough to give real actual advice and guidance would know that if they aren't licensed they can't give the advice and guidance. For those who think they know enough but don't.... they will be the ones to give the advice and guidance.

Also, "a good amount" can mean very different things to different people as it is very subjective. If we are talking $50K that is one thing.... and $1MM is another. On one end, common sense and maybe picking up a decent personal finance book would be enough and on the other end they would be foolish to not get professional help.

thanks, i guess my question was more along the lines of if there's another option that is less active and lower fee than financial advisor, i thought maybe Vanguard or Fidelity offered something along those lines, I guess I can call them directly just wondering if there were other options I wasn't aware of.

That is a different question of where is the best/cheapest options of financial advisors. Anyone you deal with at Vanguard/Fidelity will be licensed and they are financial advisors. I remember Fidelity offering a FA with a certain amount of assets. I didn't dive into the costs. There are flat fee FA's out there that a lot of people prefer as they are seen as being independent.

 

[Desert_Power]

Question, a friend of mine inherited a good amount of money and has asked me for advice. I happen to know a decent amount about finance but don't want to have responsibility for telling her what to do with her money. If she didn't want to get a financial advisor, what would be her best option for getting assistance?

A financial advisor is the only licensed person to go to for real advice. She can go to a bank or credit union but that won't be advice as much as selling them on wealth management. Anyone who knows enough to give real actual advice and guidance would know that if they aren't licensed they can't give the advice and guidance. For those who think they know enough but don't.... they will be the ones to give the advice and guidance.

Also, "a good amount" can mean very different things to different people as it is very subjective. If we are talking $50K that is one thing.... and $1MM is another. On one end, common sense and maybe picking up a decent personal finance book would be enough and on the other end they would be foolish to not get professional help.

thanks, i guess my question was more along the lines of if there's another option that is less active and lower fee than financial advisor, i thought maybe Vanguard or Fidelity offered something along those lines, I guess I can call them directly just wondering if there were other options I wasn't aware of.

Something like this could be reasonably priced. Really though, most people can do this stuff themselves.

 

[Mitchie]

Question, a friend of mine inherited a good amount of money and has asked me for advice. I happen to know a decent amount about finance but don't want to have responsibility for telling her what to do with her money. If she didn't want to get a financial advisor, what would be her best option for getting assistance?

A financial advisor is the only licensed person to go to for real advice. She can go to a bank or credit union but that won't be advice as much as selling them on wealth management. Anyone who knows enough to give real actual advice and guidance would know that if they aren't licensed they can't give the advice and guidance. For those who think they know enough but don't.... they will be the ones to give the advice and guidance.

Also, "a good amount" can mean very different things to different people as it is very subjective. If we are talking $50K that is one thing.... and $1MM is another. On one end, common sense and maybe picking up a decent personal finance book would be enough and on the other end they would be foolish to not get professional help.

thanks, i guess my question was more along the lines of if there's another option that is less active and lower fee than financial advisor, i thought maybe Vanguard or Fidelity offered something along those lines, I guess I can call them directly just wondering if there were other options I wasn't aware of.

Something like this could be reasonably priced. Really though, most people can do this stuff themselves.

Thanks that's helpful, my friend can definitely not do this herself.

 

[Sand]

Question, a friend of mine inherited a good amount of money and has asked me for advice. I happen to know a decent amount about finance but don't want to have responsibility for telling her what to do with her money. If she didn't want to get a financial advisor, what would be her best option for getting assistance?

A financial advisor is the only licensed person to go to for real advice. She can go to a bank or credit union but that won't be advice as much as selling them on wealth management. Anyone who knows enough to give real actual advice and guidance would know that if they aren't licensed they can't give the advice and guidance. For those who think they know enough but don't.... they will be the ones to give the advice and guidance.

Also, "a good amount" can mean very different things to different people as it is very subjective. If we are talking $50K that is one thing.... and $1MM is another. On one end, common sense and maybe picking up a decent personal finance book would be enough and on the other end they would be foolish to not get professional help.

thanks, i guess my question was more along the lines of if there's another option that is less active and lower fee than financial advisor, i thought maybe Vanguard or Fidelity offered something along those lines, I guess I can call them directly just wondering if there were other options I wasn't aware of.

Something like this could be reasonably priced. Really though, most people can do this stuff themselves.

Thanks that's helpful, my friend can definitely not do this herself.

Yeah, Vanguard will do a 0.35% financial advisor. That's pretty reasonable.

I think the biggest thing to tell your friend is that they don't have to rush to do something with this money. Really, taking 6 months to figure it out is OK. Having said that Vanguard is safe and can help her set something up.