Retirement

A place to hang out, get to know other Muggles and discuss everything under the sun.
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ChrisKochmanski
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#81

Post by ChrisKochmanski »

I feared that I'd be bored in retirement. And I'm NOT. Far from it, in fact. The days fly by.

Though note that I do work part-time, doing copywriting gigs for a couple of marketing and creative services firms. This amounts to, on average, maybe 25 hours per month. It's fun enough, and it gives me a reason to check my email every day. I'd like to keep doing this for two or three more years, maybe even five, while my wife is still wrapped up in her own part-time seasonal work and volunteer activities. Then I think we'll cut it all off and do the fully retired things, like more travel and visiting the kids and grandkids more than they'll want us to.
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SReh26
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#82

Post by SReh26 »

According to Reddit, VTI and VTSAX Vanguard Admiral Fund are surefire investments. Can I get a reality check from wiser minds? Is this another millennial delusion?

Of the 4 million funds out there, why are these two so great besides being broad based low cost index funds?
Last edited by SReh26 on Fri Sep 17, 2021 6:38 pm, edited 1 time in total.
hoover
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#83

Post by hoover »

I have VTSAX as a significant portion of my portfolio. The expense ratio is a paltry 0.04% and the value has more than doubled over the past 5 years. It's up over 20% YTD. What's not to like?
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SReh26
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#84

Post by SReh26 »

hoover wrote: Fri Sep 17, 2021 3:16 pm I have VTSAX as a significant portion of my portfolio. The expense ratio is a paltry 0.04% and the value has more than doubled over the past 5 years. It's up over 20% YTD. What's not to like?
That’s great. Does it pay dividends?
hoover
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#85

Post by hoover »

SReh26 wrote: Fri Sep 17, 2021 11:44 pm
hoover wrote: Fri Sep 17, 2021 3:16 pm I have VTSAX as a significant portion of my portfolio. The expense ratio is a paltry 0.04% and the value has more than doubled over the past 5 years. It's up over 20% YTD. What's not to like?
That’s great. Does it pay dividends?
Yes.
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SReh26
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#86

Post by SReh26 »

ChrisKochmanski wrote: Mon Sep 13, 2021 9:08 pm I feared that I'd be bored in retirement. And I'm NOT. Far from it, in fact. The days fly by.

Though note that I do work part-time, doing copywriting gigs for a couple of marketing and creative services firms. This amounts to, on average, maybe 25 hours per month. It's fun enough, and it gives me a reason to check my email every day. I'd like to keep doing this for two or three more years, maybe even five, while my wife is still wrapped up in her own part-time seasonal work and volunteer activities. Then I think we'll cut it all off and do the fully retired things, like more travel and visiting the kids and grandkids more than they'll want us to.
That sounds ideal. Glad it’s working out well for you!
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mntlblok
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#87

Post by mntlblok »

SReh26 wrote: Sun May 02, 2021 7:40 pm Wsj has been screaming lately that equities are in a bubble, never more so than today. Thoughts?

A friend of mine went all to cash but with the s and p up a crazy percentage in the past 12 months, it seems silly to leave the party now. Ive played defense since 2016 so I’m already in a conservative allocation, whatever that even means today, what with so many asset classes seemingly inflated.
Just found this thread and have only read to this point, so possibly shoulda waited to chime in until I'd read it all, but feared I'd never get back to this spot or be unable to find it, again. First, I'm *very* happy to have found this Muggles bunch. I'm generally *much* too picky about friends, but I really like a bunch of you folks.

OK, back to what I wanted to add. I've been reading John Mauldin's free newsletter every Saturday morning for a couple of decades, so have therefor figured out that all one must do is accurately predict the future. *Have* actually, on "big picture" stuff, been able to do that a few times - and *still* managed to mostly muck it up - either with imprecise timing or because of a "less total understanding" of a situation than I'd thought I'd had.

Coming up on three years of being retired. Wifey, thanks to age discrimination, has ended up working from home as a programmer about 20 hours a week and now seems pretty happy with that. Looks like she'll try total retirement next spring, but realizes that she'll need something "work-like" to do. I think she'll successfully pull that off. She's nearly as weird as I.

I, on the other hand, was one of the happiest "total" retirees ever. Been working since I was 15 and would have preferred "playing" to working most *all* of that time. I tend to over-do my hobbies, so that was pretty ideal for retirement. Reminds me, though, that the differentiation between "work" and "play" can be much more blurred than maybe what is generally accepted. Is going down Google rabbit holes "work"?

Back to that "accurately predicting the future" thing. Health, rather than financial issues, appear to possibly be looming for both of us, even though we're only 68. Just reading an article about the increase in autoimmune diseases amongst our cohort. Me no likey. Already been knocked out of my "old man tennis tournament" touring plans, as that "removal of three wrist bones" surgery didn't work out very well - after having had *wonderful* results with knee replacements. Covid came along at about that same time as the failed surgery. Still trying to "make do" with the scuba hobby, but fear the writing is on the wall for that, too.

Anyway, if you can't accurately predict the future, feel free to wallow with me in my nihilism and absurdist philosophy. :-)
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SReh26
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#88

Post by SReh26 »

I’m in the process of opening my first IRA ever and backdoor converting to a Roth IRA. Needless to say, this is way too late. I hope others get an earlier start. However, better late than never I suppose. :(
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SReh26
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#89

Post by SReh26 »

I’m informed that index investing is The Way of all ways. Is it just a marketing gimmick or is it fundamentally sound?

I do get that it is less expensive than active management, but I’m concerned that this approach is being touted as a panacea and a sure bet at any price, which sounds a lot like snake oil to this round the way girl.
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joequavis
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#90

Post by joequavis »

I don't always invest in mutual funds, but when I do, I prefer index funds.

All voiceovers aside, I invest in a few individual stocks, and for the past 12 years or so, have been in various market index funds. I'm nigh on my 45th birthday and spent the first decade or so of my investing career fretting over individual stocks / mutual funds, etc. Shifting out of equities into bonds and vice versa at the worst possible times. Finally in ~2009, I decided to stop fretting, pick several market index funds and enjoy the ride. Could I have obtained a better return by re-evaluating on a semi-monthly basis? Maybe, probably. But my cortisol level thanks me for not. I do not intend to change this approach for the foreseeable future.
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SReh26
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#91

Post by SReh26 »

I opened a backdoor Roth in Fidelity. Probably of limited usefulness since they are likely not permitted going forward. So I‘ll have a $7k account earning $4 a year tax free to remind me of my folly.
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Tom Shea
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#92

Post by Tom Shea »

SReh26 wrote: Sat Oct 16, 2021 1:22 pm I opened a backdoor Roth in Fidelity. Probably of limited usefulness since they are likely not permitted going forward. So I‘ll have a $7k account earning $4 a year tax free to remind me of my folly.
Backdoor Roth's are very useful. I highly recommend opening a Roth whenever it is available, just to start the 5 year clock. After five years, it doesn't matter when you put the money in, but you can withdraw without penalty (after 59 1/2).

I use it now to max out whatever tax bracket I'm in at the end of the year by transferring to Roth. When I withdraw it, it may be to get me below the next tax bracket as well.
Rufus T. Firefly
Glorfindel
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#93

Post by Glorfindel »

SReh26 wrote: Sun Oct 10, 2021 6:10 pm I’m informed that index investing is The Way of all ways. Is it just a marketing gimmick or is it fundamentally sound?

I do get that it is less expensive than active management, but I’m concerned that this approach is being touted as a panacea and a sure bet at any price, which sounds a lot like snake oil to this round the way girl.
I found a few other posts along these lines and others connected to investing. FWIW, if interested I'd refer you to the Bogleheads forums, in particular the one on personal investing:
https://www.bogleheads.org/forum/viewforum.php?f=1

- offering a wealth of discussions, resources etc for education and understanding, if you wish.

A few other comments along the way:
1. Active vs. passive (index) investing is a frequent subject of debates. In the end, what'll probably matter to most investors is: asset allocation (i.e. how much in stocks vs. bonds, how much domestic vs. foreign) and expenses (how much is the intermediary's cut).
2. Too early to say Roth IRAs are going away - legislation is far from done, and final shape? No one knows...

My opinions, of course...
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ship4u
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#94

Post by ship4u »

SReh26 wrote: Sat Apr 24, 2021 9:24 pm Share your thoughts/tips/strategies for health, personal finance or retirement here. Is it better to retire relatively early, on time or late? Is there anything you wish you could tell your 45 or 50 year old self about the second half of life?
Sorry for joining this conversation so late. My first career was as a Psychologist and Director of a College Counseling Center. I wanted to help college age students find their way at that important juncture in their lives and also help them form positive relationships for the future. My plan was to do this work for about 20 years and then pursue the American Dream of owning my own business. (Working in a college or university allows you to set up a matching contribution retirement package that belongs to you on day 1.) The opportunity came not long after moving to Ohio when I purchased a Mailbox Etc. shipping store which later became The UPS Store and a very successful venture for my wife and I.
Working this business was very enjoyable for me but it became a catch 22 in that as the business grew, it was also very difficult to find good help to spread the workload from the 2 of us. By the time I turned 60, we realized that the business was taking up almost all of our time and we were ready to decide the next chapter in our life. We both wanted to do more traveling.
I had a pretty good idea of the price I could get for the business and my financial consultant ran an analysis based on our total financial situation. We never looked back. We had developed a trusting relationship with several antique businesses for whom we had done shipping, so we continued to do this part time which allowed us to pursue creative hobbies and travel when we wanted.
I think the important thing to think about is how to stay productive and manage your finances to enjoy the things you want to do in retirement. Also, keep in mind that health care will begin to take up more of your budget as you get older.
Don & Cynthia

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hoover
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#95

Post by hoover »

ship4u wrote: Thu Nov 25, 2021 12:00 pm
SReh26 wrote: Sat Apr 24, 2021 9:24 pm Share your thoughts/tips/strategies for health, personal finance or retirement here. Is it better to retire relatively early, on time or late? Is there anything you wish you could tell your 45 or 50 year old self about the second half of life?
I purchased a Mailbox Etc. shipping store which later became The UPS Store and a very successful venture for my wife and I.
Working this business was very enjoyable for me but it became a catch 22 in that as the business grew, it was also very difficult to find good help to spread the workload from the 2 of us. By the time I turned 60, we realized that the business was taking up almost all of our time and we were ready to decide the next chapter in our life.
But apparently you kept the handle "ship4u". ;)
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ship4u
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#96

Post by ship4u »

hoover wrote: Thu Nov 25, 2021 2:14 pm But apparently you kept the handle "ship4u". ;)
👍 It's in my blood. We became the top UPS Store in the state of Ohio.
Don & Cynthia

We are always happy to get to know other muggles and help in any way! PM's are always welcome. The next best thing to winning a mug is helping a fellow muggle win a mug!
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SReh26
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#97

Post by SReh26 »

hoover wrote: Sun Sep 19, 2021 12:42 am
SReh26 wrote: Fri Sep 17, 2021 11:44 pm
hoover wrote: Fri Sep 17, 2021 3:16 pm I have VTSAX as a significant portion of my portfolio. The expense ratio is a paltry 0.04% and the value has more than doubled over the past 5 years. It's up over 20% YTD. What's not to like?
That’s great. Does it pay dividends?
Yes.
Bought some FSKAX for my Roth IRA this year and opened a taxable brokerage account. May buy more. Or not. I’ll file 8606 for the dividend.

If I buy something in my taxable account, I’ll have my first ever long term capital gain (or loss) down the road when I sell!!
Tom Wilson
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#98

Post by Tom Wilson »

Taking advantage of an incentive program, I just gave my supervisor and HR my two-year notice. If all goes according to plan, I will join the ranks of the happily retired on Jan. 19, 2024. (If I only had a mug from which to take a celebratory sip. Sigh.)
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vandono
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#99

Post by vandono »

SReh26 wrote: Sun Oct 10, 2021 6:10 pm I’m informed that index investing is The Way of all ways. Is it just a marketing gimmick or is it fundamentally sound?

I do get that it is less expensive than active management, but I’m concerned that this approach is being touted as a panacea and a sure bet at any price, which sounds a lot like snake oil to this round the way girl.
Nothing is a sure bet, but index investing is not a gimmick and is fundamentally sound. It's not necessarily the answer for everyone, but it's probably the answer for most people. If you invest in a fund based on the S&P 500 (or a broader index) you're basically investing in the broader economy. You're pooling your money to buy hundreds (or, in the case of a fund like VTSAX mentioned above, thousands) of companies traded in the US equity market. Its performance will rise and fall with the American economy. If your investment horizon is long and you believe that in the long run our economy will recover from the inevitable downturns - and if you aren't someone who wants to spend time combing through thousands of actively-managed funds to figure out which handful will beat the index this year or analyzing things like this week's jobless claims or next week's manufacturing index to decide which sectors look promising - then buying inexpensive index funds is a lot easier.

Myself, I do have a lot in indexes but also some in different funds and even individual equities - but I enjoy doing the research. I try not to risk tomorrow's goals by putting too much capital at risk on my crazy ideas. At the end of the day, you have to have a pretty solid reason to think your investment choice will outperform the broader market (after expenses) if you invest in something besides an index fund.
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SReh26
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#100

Post by SReh26 »

vandono wrote: Tue Dec 28, 2021 3:30 am
SReh26 wrote: Sun Oct 10, 2021 6:10 pm I’m informed that index investing is The Way of all ways. Is it just a marketing gimmick or is it fundamentally sound?

I do get that it is less expensive than active management, but I’m concerned that this approach is being touted as a panacea and a sure bet at any price, which sounds a lot like snake oil to this round the way girl.
Nothing is a sure bet, but index investing is not a gimmick and is fundamentally sound. It's not necessarily the answer for everyone, but it's probably the answer for most people. If you invest in a fund based on the S&P 500 (or a broader index) you're basically investing in the broader economy. You're pooling your money to buy hundreds (or, in the case of a fund like VTSAX mentioned above, thousands) of companies traded in the US equity market. Its performance will rise and fall with the American economy. If your investment horizon is long and you believe that in the long run our economy will recover from the inevitable downturns - and if you aren't someone who wants to spend time combing through thousands of actively-managed funds to figure out which handful will beat the index this year or analyzing things like this week's jobless claims or next week's manufacturing index to decide which sectors look promising - then buying inexpensive index funds is a lot easier.

Myself, I do have a lot in indexes but also some in different funds and even individual equities - but I enjoy doing the research. I try not to risk tomorrow's goals by putting too much capital at risk on my crazy ideas. At the end of the day, you have to have a pretty solid reason to think your investment choice will outperform the broader market (after expenses) if you invest in something besides an index fund.
Thanks! I have a State Street S&P index fund in my 401k and I’ve been dabbling lately in FSKAX (Fidelity’s total market index mutual fund) in my new Roth IRA and a State Street Global All Cap ex-US Index Fund in my 401k. I also have bonds.
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