<![CDATA[Early Retirement & Financial Independence Community]]> http://www.early-retirement.org/forums/ An online community to exchange knowledge about FIRE (Financial Independence and Early Retirement), discussing all aspects of early retirement including planning, challenges, rewards, expense management, investment strategies, and more. Start planning your early retirement today! en Thu, 17 May 2012 19:40:13 GMT vBulletin 60 http://cdn.early-retirement.org/forums/images/early_r/misc/rss.jpg <![CDATA[Early Retirement & Financial Independence Community]]> http://www.early-retirement.org/forums/ Single Premium Insurance Policy? http://www.early-retirement.org/forums/f28/single-premium-insurance-policy-61439.html Thu, 17 May 2012 17:12:19 GMT A buddy of mine called (he's retired). Just closed on a house and someone tried to sell him a Single Premium Insurance Policy for his wife. They'd give the guy $25K, and, X-years from now, will get $67K(?). I tried to explain that mixing insurance and investments is not a good idea. Problem is, I am unfamiliar with this product. Can anyone give me some idea as to whether it's a "bad thing" or other cautions related to this program.

My instinct is, the guy they talked to is a salesman, he has no fiduciary interest in my friend or his spouse and this will likely be an expensive, less then productive way to spend a good deal of money.

Can anyone help me on this?

Rich ]]> FIRE and Money Rich http://www.early-retirement.org/forums/f28/single-premium-insurance-policy-61439.html I (might) need help simplifying my retirement accounts http://www.early-retirement.org/forums/f28/i-might-need-help-simplifying-my-retirement-accounts-61438.html Thu, 17 May 2012 16:56:57 GMT As someone who has been saving fastidiously since childhood, and maxing out my 401k since shortly after college, I have an embarrassing confession:... As someone who has been saving fastidiously since childhood, and maxing out my 401k since shortly after college, I have an embarrassing confession: I never really paid much attention to the allocation of funds in my 401k. I vaguely remember choosing some funds when I opened my account, and I think after one or two years I (foolishly) switched around the funds and added some new ones which had done exceedingly well in the prior year. :facepalm: Mind you, this was around 15 years ago when I was fresh out of college and didn't have a clue about...well...much of anything.

Years have passed, my wife and I have had numerous employers, and now we have multiple accounts in Vanguard, TSP, and TIAA-CREF. If that's not enough to keep track of, we have a large number of funds in some of our accounts -- especially Vanguard. I have 15 funds in my Vanguard retirement plan (through my employer) alone. Some are undoubtedly near duplicates of others.

For Vanguard stock I have Growth Index Signal, PRIMECAP Admiral, US Growth Fund, Explorer, Growth Index, Growth and Income, Institutional Index, Strategic Equity, U.S. Value, Value Index.

For Vanguard balanced funds I have Balanced Index, LifeStrategy Moderate Growth, STAR, Wellesley Income, and Wellington.

For Vanguard bonds I have Inflation-protected Securities and Total Bond Market Index.

Is there any compelling reason (beyond reducing complexity) to consolidate my Vanguard funds to just a few that align with my risk tolerance -- perhaps Wellington, Wellesley, and one or two others?

Between all our plans the allocation works out to be about 70% stock (very heavily weighted toward domestic), 15% bonds, 10% guaranteed (employer contributions -- can't change this), and the remainder a combination of real estate, short-term reserves, and others.

I'm not even sure how to get started in simplifying things. I actually don't know that simplifying things is a good idea financially; maybe it's worthwhile (risk mitigation) to have the $$ spread around through various companies/plans and funds?

We could probably roll over all our 401k's and 403b's into IRAs and park them in our Vanguard accounts. From an accounting point of view it would be nicer to have everything in one place. Can anyone think of a good reason to just leave the TIAA and TSP accounts alone?

Any other been-there-done-that advice about this situation? ]]> FIRE and Money A Bird In Hand http://www.early-retirement.org/forums/f28/i-might-need-help-simplifying-my-retirement-accounts-61438.html Small Biz Owner Pulling the Plug http://www.early-retirement.org/forums/f26/small-biz-owner-pulling-the-plug-61436.html Thu, 17 May 2012 16:51:04 GMT Hi Guys and Gals , Looks like I'm officially pulling plug next week.

I've been " kind of retired " for several years ( lease income ) , but next week my lessee is exercising his option and our deal closes and funds.

I'm 55 / wife is 54 , we are in good health :dance: , and no debt other than a couple of rental houses with 70% LTV mortgages and long term renters.

After the sale ( post tax ) , the portfolio will be in the 1.5M range. I'm strongly considering working the portfolio over to the " Merriman Ultimate Buy & Hold Portfolio". I'm a little nervous about dumping the sale proceeds into the portfolio with the market @ 12,500 and artificially low interest rates , but thinking I'll dollar cost average my way fully in.

At some point in the future we'll inherit some family land and modest cash.

We'll need to draw down annually to fund living expenses ( I've read the stickies on drawdown ).

FIRECALC says we're good to go , but I'm still a little nervous.

I get a little bored , so I may do a little real estate investing with my uncle who's been a great equity source and partner over the years. Mainly low risk small commercial and land deals.

Full Retirement looks like it's going to be , moving back home to be able to care for my parents , playing with my cars , playing a little golf , gardening , and whatever else comes my way.

Looking forward to the next chapter :coolsmiley: ]]> Hi, I am... tstiles http://www.early-retirement.org/forums/f26/small-biz-owner-pulling-the-plug-61436.html Graphic of religions in the United States http://www.early-retirement.org/forums/f27/graphic-of-religions-in-the-united-states-61435.html Thu, 17 May 2012 16:46:48 GMT I received an interesting email this morning from a friend. It's from USA Today and is a graphic of the various religions throughout the United States and is depicted by state. If you are interested you can google the site at www.usatoday.com/news/graphics/pew-religion-08/flash.htm

Edited to add that this post is not intended to start any serious discussion on religion. It's just something I had never seen before and thought the forum might be interested. ]]> Other topics JOHNNIE36 http://www.early-retirement.org/forums/f27/graphic-of-religions-in-the-united-states-61435.html <![CDATA['Good' cholesterol doctrine may be flawed: study]]> http://www.early-retirement.org/forums/f38/good-cholesterol-doctrine-may-be-flawed-study-61434.html Thu, 17 May 2012 16:42:46 GMT 'Good' cholesterol doctrine may be flawed: study - Yahoo! News

Quote:
Researchers on Thursday challenged a tenet of modern medicine that higher levels of "good" cholesterol automatically boost cardiovascular health.
In a study published in The Lancet, investigators said they found no evidence to back the belief that higher levels of high-density lipoprotein (HDL) cholesterol routinely reduce the risk of a heart attack.
]]> Health and Early Retirement tjscott0 http://www.early-retirement.org/forums/f38/good-cholesterol-doctrine-may-be-flawed-study-61434.html Plan through employer or not http://www.early-retirement.org/forums/f28/plan-through-employer-or-not-61433.html Thu, 17 May 2012 15:26:36 GMT Hi everyone, I am brand new here and have discovered the site just last week. My question may be obvious but I can't find an answer on the Internet anywhere. I would appreciate any responses very much. I am currently employed and have not ever started a 401k with my employer. After listening to Dave Ramsey, I now want to start a retirement plan. Can you tell me if there is any logic to not using the employer plan, and going directly to Vanguard and setting things up there? Advantages such as lower fees, more options, etc.? Has anyone done this or is it inherently smarter to use whatever employer plan is available? There is no match of any kind where I work, so no 3% match to consider.

Sorry if this has a very obvious answer. I had thought of going on to Vanguard and setting up index funds to invest in, then wondered if I was crazy not to use what my employer offers. The stocks/bonds/mutual funds world is new for me and has always scared me, that is why I have not invested this way before.

Thank you for your help! ]]> FIRE and Money palomino http://www.early-retirement.org/forums/f28/plan-through-employer-or-not-61433.html Sell in May http://www.early-retirement.org/forums/f28/sell-in-may-61432.html Thu, 17 May 2012 15:02:18 GMT Sell in May and go away.....Where did this come from. Is this herd mentallity or are we in a legitimate correction? Sell in May and go away.....Where did this come from. Is this herd mentallity or are we in a legitimate correction? ]]> FIRE and Money ripper1 http://www.early-retirement.org/forums/f28/sell-in-may-61432.html Earthquake Insurance went from $573 to $372 http://www.early-retirement.org/forums/f28/earthquake-insurance-went-from-573-to-372-a-61431.html Thu, 17 May 2012 14:30:42 GMT That was a surprise. Anyone know why? That was a surprise. Anyone know why? ]]> FIRE and Money TromboneAl http://www.early-retirement.org/forums/f28/earthquake-insurance-went-from-573-to-372-a-61431.html Okay, this is straight out of science fiction http://www.early-retirement.org/forums/f27/okay-this-is-straight-out-of-science-fiction-61430.html Thu, 17 May 2012 12:08:46 GMT Apparently there is hope for people paralyzed by injuries/disease: Paralyzed woman gets mind-controlled robotic arm - Health - Health care - More... Apparently there is hope for people paralyzed by injuries/disease:

Paralyzed woman gets mind-controlled robotic arm - Health - Health care - More health news - msnbc.com

Actually controlling a robotic arm by thoughts? Wow.

I know there has been a lot of experimentation and research on this and I suppose that eventually (one hopes) the bionic person will become a reality. Wonder if I'll be around long enough to see it. ]]> Other topics Walt34 http://www.early-retirement.org/forums/f27/okay-this-is-straight-out-of-science-fiction-61430.html Ch-ch-ch-changes http://www.early-retirement.org/forums/f29/ch-ch-ch-changes-61429.html Thu, 17 May 2012 06:37:02 GMT I keep vacillating between putting this thread here or in "Health & Early Retirement". On the one hand I can't really say this is about Life after FIRE, because I'm still working, although I may be pulling the plug shortly. Then again, what's prompting me to consider retiring a year sooner than I had planned to is that about 6 weeks ago I was diagnosed with breast cancer.

I had been feeling more and more burned-out at my job anyway, asking myself, why am I continuing to work? Even before I found out the lump was cancer I was strongly considering telling my boss that I had changed my retirement plans from "May 2013" to "as soon as I can sell my house". I talked to several real estate agents at the Home Show back in February, and was told that houses were starting to sell more quickly than they had been in recent years, and this spring might be a good time to put my place on the market. Meanwhile, my mother had broached the idea of my moving in with her for a time, which would let me put my house on the market sooner and reduce the chances that a slow sale would force me to delay my retirement. My father died last December and Mom said she felt like she was rattling around living by herself in the same house. She's probably going to move into a retirement community, but hasn't picked which one yet. Downsizing from her home of 30 years to a maybe two-bedroom apartment is going to be a major undertaking, and I thought I would be able to help her more with that if I was living in the same house than from across town (although I don't know how much help I'll be able to be now). The idea of moving in together for a while sounded like a win-win, and we were just starting to think about the details when I got diagnosed. At that point drastic action was called for, because whether I retire immediately or take a leave of absence from work, I won't have enough income to continue my mortgage payments for more than a few months, so I need to sell the house ASAP. Some friends from the choir helped me move most of my stuff into a storage unit two weekends ago, and I hope to get the house completely emptied out by the end of the month.

So....I'm writing this from the spare bedroom at my mom's house, where I'll be staying during the initial phase of my treatment. I'm scheduled for a mastectomy on June 6, dreading it but not wanting to delay it either. I have never had such a major surgery in my life and have no idea what to expect as far as pain, recovery time etc. I won't know whether chemo will be part of the treatment until after the surgery. I hope I'm not faced with radiation also, as I have something very like a phobia of it, but due to the location of the tumor, I may not avoid it even by having a mastectomy. That also I won't know until after surgery. Then there is reconstruction, which will involve at least one more big surgery and probably one or more lesser operations. The silver lining is that the tumor is small and appears to have been caught at an early stage, so unless something unexpected turns up during surgery I'm told it's very likely I'll make a full recovery, but I am expecting the next year or so to be a real toughie.

I feel like my life has been turned upside down. My mom says "don't burn your bridges behind you". She doesn't see how I could possibly afford to retire at my age, but all the models I've run in FIRECalc and flexible retirement planner, plus a number of financial planners I've talked to through the retirement plan at work and the like, say that with my income and budget I could retire tomorrow and be pretty confident of not running out of money. Frankly, I can't see myself going back to work after treatment. I'm very certain I don't want to, and not sure that I could do my job well again after a lapse of a month or more, even if I wanted to. ]]> Life after FIRE kyounge1956 http://www.early-retirement.org/forums/f29/ch-ch-ch-changes-61429.html <![CDATA[Nanny & 401k options]]> http://www.early-retirement.org/forums/f27/nanny-and-401k-options-61428.html Thu, 17 May 2012 03:40:35 GMT My neighbor hit me up with a question that I wasn't sure about, so I figured I would pose it here since it is more 401k based.

He's been interviewing new nannies for the summer. He normally treats them/pays them as a W-2 employee. He pays the employer taxes, FICA, etc. then he also deducts the employee taxes, etc., then nanny gets a net check for the balance.

He never thought about 401k for previous nannies until a potential nanny for this summer. She wants to put all her pay into a 401k until she hits 17k, then receives a paycheck.

Is this possible? Does he deposit it into he Vanguard individual 401k on her behalf and just pay employer taxes. Then after 17k, then nanny's gross wages gets hit for taxes, then nanny gets net pay?

I'm not sure about the process as we never had a nanny. Any suggestions? ]]> Other topics Aiming_4_55 http://www.early-retirement.org/forums/f27/nanny-and-401k-options-61428.html Report pedestrian collision to insurance? http://www.early-retirement.org/forums/f27/report-pedestrian-collision-to-insurance-61427.html Thu, 17 May 2012 01:41:44 GMT Last night driving home was the first time in my life that I ever caused a collision. Sadly, it was with a pedestrian. I was making a left hand... Last night driving home was the first time in my life that I ever caused a collision. Sadly, it was with a pedestrian. I was making a left hand turn from a side street stop sign, onto one of the widest and fastest surface streets in my city. I was looking right at the traffic I would merge into, and didn't notice until too late a pedestrian in the marked pedestrian walkway, walking across this busy street. I slammed on the brakes at the last moment, which brought my speed down from about 10-15mph to about 5mph at the time I struck him. It was horrible seeing him end up on my hood.

I can give a list of reasons why this happened... he was wearing all black at 10pm in a dimly lit intersection, he seemed inebriated and was heading to a bar, there should be a stoplight instead of just a marked pedestrian lane across that busy street, it was an unfamiliar part of town for me, and the oncoming car on my right was attracting my attention by driving erratically. But when it comes down to it, the pedestrian always has the right of way in this situation and so there's probably no way this is not my fault. I feel terrible about it.

The police and ambulance came, and decided not to write me a ticket or file any criminal charges (that I know of). The pedestrian I hit seemed more shaken than seriously injured; he was walking around just fine after the accident, and after he was checked out for a little while in the ambulance then released without being taken to the hospital.

So now I'm wondering where this leaves me in the legal and financial realms. A police officer told me that my insurance requires me to report any collision to them within 10 days. I agree that's the letter of the law, but I know many people who don't report collisions to their insurance company and that seems ethical so long as there's nothing underhanded going on.

I'm assuming that once he gets the ambulance bill, either he or his insurance will try to collect from me. I'm leaning towards proactively reporting this to my insurance company now, but wonder if there is any reason to wait until he or his representatives try to collect, on the off chance that doesn't happen for some reason; since no criminal activity was alleged or charged, this seems to be a purely civil matter at this point. I'm assuming that my auto insurance (and/or umbrella insurance) will appoint a lawyer if I end up needing one so I'm not looking for a lawyer now.

What would you do? Report it now? Get a lawyer now? ]]> Other topics free4now http://www.early-retirement.org/forums/f27/report-pedestrian-collision-to-insurance-61427.html Student Loans - Question on Maxing Roth or Traditional 401k + Savings http://www.early-retirement.org/forums/f28/student-loans-question-on-maxing-roth-or-traditional-401k-savings-61426.html Thu, 17 May 2012 01:33:19 GMT I'm currently maxing a Roth 401k at work. My wife has significant student loans that we are on schedule to pay off in exactly 48 months at our current payment levels (not counting tax refunds, extra income, bonuses, etc...). We are in a 31%-36% tax bracket when counting state and federal taxes (depending on my wife's bonus, a switch to a traditional 401k may bump us back down to 31%). Per our calculations, if I switched to a traditional 401k and put the yearly savings of $5270 - $6,120 towards her student loans, her loans would be paid off in 38 months instead of 48.

My wife wants me to continue putting the money in the Roth, but I'm torn. I have two related questions: (1) Should I switch to a traditional 401k and put that money towards the student loans or should I keep contributing to the Roth 401k? (2) If I was contributing to a traditional 401k, my question would be whether it is better to put the $5270 - $6120 towards her student loans or into additional taxable investment accounts?

Our current thought is that the money we invest now is the most valuable in our lives due to compound interest, time to retirement, etc.... It seems like we would do better to either do the Roth or the traditional + investing the savings in taxable accounts, rather than contributing the extra amounts towards the student loans. While the debt is a burden, we tend to think that years down the road we will be much happier to have either a maxed out Roth 401k or a traditional 401k + tax savings invested in taxable accounts, as opposed to having taken that money away to speed up the student loan repayment by 10 months.

I know a lot of you guys are already down the road from me, what would you advise us to do? ]]> FIRE and Money NOLA Rob http://www.early-retirement.org/forums/f28/student-loans-question-on-maxing-roth-or-traditional-401k-savings-61426.html Drink coffee and live longer http://www.early-retirement.org/forums/f38/drink-coffee-and-live-longer-61425.html Thu, 17 May 2012 01:09:07 GMT If this is true it is certainly good news. ---Quote--- Men who drank 2 to 3 cups a day had a 10 percent chance of outliving those who drank... If this is true it is certainly good news.

Quote:
Men who drank 2 to 3 cups a day had a 10 percent chance of outliving those who drank no coffee, while women had a 13 percent advantage, according to research published today in the New England Journal of Medicine.

The study by researchers at the National Cancer Institute is the largest to compare coffee drinkers with those who avoid it to determine whether the beverage can delay the risk of dying from ailments such as heart disease, diabetes or respiratory illness, said Neal Freedman, the lead study author. It’s unclear why coffee may be beneficial and more research is needed to study that question, he said.
Story here Coffee May Help Drinkers Live Longer, U.S. Study Suggests - Bloomberg ]]> Health and Early Retirement MichaelB http://www.early-retirement.org/forums/f38/drink-coffee-and-live-longer-61425.html What %age of your household gross income do you save per year? http://www.early-retirement.org/forums/f28/what-age-of-your-household-gross-income-do-you-save-per-year-61424.html Thu, 17 May 2012 00:42:32 GMT I thought it might be encouraging/motivating to do a poll on what percentage of household gross income you are able to save per year. Please weigh in? I thought it might be encouraging/motivating to do a poll on what percentage of household gross income you are able to save per year. Please weigh in? ]]> FIRE and Money web_diva http://www.early-retirement.org/forums/f28/what-age-of-your-household-gross-income-do-you-save-per-year-61424.html