<![CDATA[Early Retirement & Financial Independence Community]]>

<![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, 23 May 2013 05:23:45 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/ Accounting records for your investments http://www.early-retirement.org/forums/f28/accounting-records-for-your-investments-66777.html Thu, 23 May 2013 03:17:39 GMT I posted a thread recently regarding the accounting method used for tax purposes (specific ID, LIFO, FIFO, etc). This has got me pondering another... I posted a thread recently regarding the accounting method used for tax purposes (specific ID, LIFO, FIFO, etc). This has got me pondering another topic that I thought I would post to hear your input.

How do you account for your investment contributions, withdraws, dividends, appreciation, etc? Do you follow a specific process to account for every penny in NAV (net asset value) in routine intervals (i.e., weekly, monthly, quarterly, etc)?

Working in finance and accounting, I should maintain accurate records. However, after doing that at work for 7-9 hours a day, it is challenging to come home and force myself to do that for my own personal investments. While I do check performance metrics frequently, I don't have any accounting process set up to track every penny. I would like to become a bit more diligent; however, being in my mid 20s and 100% invested in equity index ETFs, I am pretty much on auto pilot and (apparently) trust Vanguard with my money.

I suppose I value the ability to come home from work and do as I please (lounge, work out, eat, clean, sleep, etc) instead of accounting for every penny in my brokerage accounts.... ]]> FIRE and Money younginvestor2013 http://www.early-retirement.org/forums/f28/accounting-records-for-your-investments-66777.html Refinancing http://www.early-retirement.org/forums/f29/refinancing-66776.html Thu, 23 May 2013 02:36:25 GMT Trying to locate a bank or institution that will lend on greater than 4 properties. Everywhere I go no one will loan beyond the 4 property limit and... Trying to locate a bank or institution that will lend on greater than 4 properties. Everywhere I go no one will loan beyond the 4 property limit and especially don't want to cash out on a property that has no outstanding mortgage.

Does anyone know of a bank that might be able to assist me. Property is in Georgia. ]]> Life after FIRE ferco http://www.early-retirement.org/forums/f29/refinancing-66776.html Ready for free time? I sure hope so. http://www.early-retirement.org/forums/f26/ready-for-free-time-i-sure-hope-so-66775.html Thu, 23 May 2013 01:35:40 GMT I am so glad I stumbled along this website while doing research on early retirement. I have already found some very useful information. I would like... I am so glad I stumbled along this website while doing research on early retirement. I have already found some very useful information. I would like to share our situation with you and find out what you think. I want to make sure I have not missed anything.

During a period of unemployment 4-5 years ago, I received an opinion from a financial expert that with minor changes, I would not need to return to work. I was a bit concerned and returned to work. We implemented many of the changes in hopes of really being ready when the time was right. We are now living in a less expensive home and are working on paying off our RE loan over the next several years. The balance is about $265,000 at 2.85%. I have a plan penciled out to pay off the loan by the end of 2014. We have no other debt. We did establish a HELOC for any future emergencies.

Over the last 2 years, we have been living with expenses generally as we will during retirement with the exception of several onetime expenses. One of the non-repeating expenses is finishing up some (significant) home improvements and another is the expense for a second home we maintain for DH's w*rk. When DH stops working out of the area, the expenses related to that location will end. DW is going to be 50 this year. He is working for a company that has gone through many layoffs. He is just riding it out for severance or until the rest of our home improvements are done and loan is paid off.

I am 46 and plan to w*rk at least until June 2014. A couple of things are happening that make it worth the time-but that could change.

I have been using Quicken since the early '90's. I know what we are spending our money on. By looking at our last 10 years (adjusted for inflation and removing several not repeating expenses), our living expenses are between $70,000 and 80,000. I also have a zero based budget that confirms that the $80,000 is very comfortable. I have estimated taxes and health care and included both in our expense figure. Taxable income is projected to be below 400% of FPL for two.

We have a rental unit in our home. At 85% occupancy, it brings in $14,000 per year. All related expenses are all ready in our living expenses and it provides a nice tax benefit. We will count on the income to offset some of our discretionary spending.

Current investment holdings: $1.65M, 80% stock and 20% bonds. $1.085M is qualified/retirement and about $565,000 is non-qualified/taxed. I am projecting we will between $1.5 and $1.6M at the end of 2014 (with loan paid and home improvements completed).

As for modeling, Quicken has us making it to over 100 years old. FIRECalc has us at 100% (retiring now) at various years from 30 to 60 years in retirement. Models include 80% of SS projections.

Several concerns:
Health care costs: I sure don't want to pull the plug now and find out 2014 just brings a bunch of messes for us. Current health insurance is through my employer so no concerns with DH separation.

Income from investments: Many of our investments are generating regular income. The income is close to what we need, however, if the value does not grow or does not return what I am planning, we will need to withdraw from the principle. I need to get a better handle on withdrawals. Withdrawal rate rounds nearly to 4% at the high end of our estimated expenses. The low end is at 3.4%.

Section 72 t: With such a high portion of our investments in qualified plans, we will need to make SEPPs. I really need to make sure I have the plan all worked out so there are no surprises. The requirement minimum distribution (RMD) method will provide enough income without the risk that comes along with the other two methods. Without 72 t, we would be years from retirement.

Generally, I feel like we are in good shape. I should note, it is ME that is 100% responsible for our finances and I really don't have anyone to compare notes with. I am looking forward to your questions/concerns to help me develop some confidence in my plan. ]]> Hi, I am... Snowcat http://www.early-retirement.org/forums/f26/ready-for-free-time-i-sure-hope-so-66775.html Minor, hopefully, inconvenience after ER http://www.early-retirement.org/forums/f29/minor-hopefully-inconvenience-after-er-66774.html Thu, 23 May 2013 01:28:05 GMT My official retirement date was April 1 of this year. On May 5, I had "emergency" back surgery. A back problem I had managed for years got worse and worse until on April 29, I couldn't hardly walk. It just got worse and worse during the last week or two of April. When my regular doc saw me on May 3, she almost panicked. She ordered an immediate MRI that showed a huge glob at the L3-L4 level. I had drop foot in both feet. My calves and butt muscles were in constant spasm. They stuck me in the hospital and told me I was in danger of permanent nerve damage. The MRI referred to the mass as a tumor, but I later learned from a biopsy it was just disk material and the stuff in between the disks and some blood, but a lot of it.

Had surgery on May 5. Within 10 days, the foot drop was gone, but now I'm looking at 6 to 12 weeks of therapy and a good chance of a full recovery.

This retirement thing hasn't worked out exactly as I had hoped, but it's coming around. Had my first therapy today and the guy was very positive. I'm guessing I'll be back to my usual bicycling and gym workouts by late July or early August. Sure not the way I planned to start retirement!

BTW, my wife has been more than a saint through all this. She deserves a medal.

On the positive side, we've had some extra money come in from tax refunds and some other minor stuff, so that part is working out great. ]]> Life after FIRE 67walkon http://www.early-retirement.org/forums/f29/minor-hopefully-inconvenience-after-er-66774.html Memorial Day flag display http://www.early-retirement.org/forums/f27/memorial-day-flag-display-66773.html Wed, 22 May 2013 21:53:08 GMT A number of us have outdoor flagpoles, so a reminder may be appropriate for this coming Monday (in the USA). Memorial Day is different from all... A number of us have outdoor flagpoles, so a reminder may be appropriate for this coming Monday (in the USA).

Memorial Day is different from all other days in terms of flag etiquette.

In the morning, hoist the flag to the top of the staff, then immediately lower it to half-staff until noon. At noon, raise it back to the top for the rest of the day.

Doing this little ceremony once a year is something I appreciate, since it makes me think about why the day is special. ]]> Other topics braumeister http://www.early-retirement.org/forums/f27/memorial-day-flag-display-66773.html A Tire Pressure Mystery http://www.early-retirement.org/forums/f27/a-tire-pressure-mystery-66772.html Wed, 22 May 2013 21:49:09 GMT Had a flat tire so took car to Costco to have flat repaired and tires rotated at same time. Marked tires so I could confirm rotation. The next... Had a flat tire so took car to Costco to have flat repaired and tires rotated at same time. Marked tires so I could confirm rotation. The next AM before driving the car, I measured the pressure on all tires. I normally run them a few psi above mfg spec so I don't have to refill so often. The spec psi was printed on the Costco order form for the tech to follow if he desired. Apparently he did since the psi on 3 tires was exactly spec and lower than I normally set them.

The mystery part is that one tire , the repaired flat, was 26psi.........3psi low.
Concerned that I had a leaker, I went to Costco and refilled all tires w/ their nice automated setup to my normal pressure (also confirmed w/ gauge). Of course, the tires were slightly warm after driving a few miles but the important thing is that they were all refilled to the same pressure. The next AM, I measured all 4 again and they were all the same. 4 days later, I measured them again and they were within 0.5psi of each other.......so I conclude that the flat was repaired and holding ok (at least over this term).

Question: what happened to produce the 3 psi lower pressure after the flat repair? Since the tires were reset to spec, it seems clear the tech knew what the target was. I would have guessed all 4 tires were filled/reset at the same time so they should have been the same. I would guess my gauge is repeatible within +/- 0.5psi so a measurement should be within
1psi or so, certainly less than the 3psi difference seen.

Any theories? ]]> Other topics kaneohe http://www.early-retirement.org/forums/f27/a-tire-pressure-mystery-66772.html Which accounting method (tax purposes) do you choose and why? http://www.early-retirement.org/forums/f28/which-accounting-method-tax-purposes-do-you-choose-and-why-66771.html Wed, 22 May 2013 21:18:15 GMT When buying ETFs or stocks, which accounting method do you choose and why? I was going to chose one that calculated some sort of average (I... When buying ETFs or stocks, which accounting method do you choose and why?

I was going to chose one that calculated some sort of average (I believe that was an option), but after some research I opted to choose the specific ID method for all of my ETFs.

My rationale is that I will have more control over which capital gains I want to realize and how much (from a tax standpoint) should I sell, re-balance, etc. Vanguard makes it easy with their yearend forms and online cost basis calculators anyway. ]]> FIRE and Money younginvestor2013 http://www.early-retirement.org/forums/f28/which-accounting-method-tax-purposes-do-you-choose-and-why-66771.html Anyone using a Chromebook? http://www.early-retirement.org/forums/f27/anyone-using-a-chromebook-66770.html Wed, 22 May 2013 20:17:37 GMT My old Dell laptop is on its way out, and I am looking for an eventual replacement. In the meantime my granddaughter wants a chromebook for her... My old Dell laptop is on its way out, and I am looking for an eventual replacement. In the meantime my granddaughter wants a chromebook for her birthday as they use them in her school.
I would like any opinions, pro or con , if anyone here has one, as I may purchase one for myself also.
I have read many reviews and details on their limitations, etc, , but would appreciate and respect comments from this board.
Thanks! ]]> Other topics sailfish http://www.early-retirement.org/forums/f27/anyone-using-a-chromebook-66770.html How do you explain your ER situation to old friends or new people you meet? http://www.early-retirement.org/forums/f27/how-do-you-explain-your-er-situation-to-old-friends-or-new-people-you-meet-66769.html Wed, 22 May 2013 14:17:26 GMT June 15 will mark my 1 year FIRED anniversary. Unfortunatley, I still haven't found a comfortable way to respond to the old "So,...what do you do?" question that I inevitably get asked when meeting new people. I also have a high school class reunion coming up so I am wondering how best to respond to some of those people that I haven't seen in so many years.

The bottom line is that some folks just don't need to hear that I have retired if they happen to be struggling from day to day just trying to make ends meet. On the other hand, maybe it shows that there is hope. (??)
Has anyone else found a way of dealing with these potentially sensitive situations that doesn't make you come off as a pompus hiney? ]]> Other topics ICNTR http://www.early-retirement.org/forums/f27/how-do-you-explain-your-er-situation-to-old-friends-or-new-people-you-meet-66769.html Tax reduction strategies in ER http://www.early-retirement.org/forums/f28/tax-reduction-strategies-in-er-66768.html Wed, 22 May 2013 13:34:59 GMT What do you do if you are fortunate enough to have a sufficiently high income in ER that you end up in the higher tax brackets? This applies to... What do you do if you are fortunate enough to have a sufficiently high income in ER that you end up in the higher tax brackets? This applies to people who have a lot of tax deferred savings and are subject to RMDs. As discussed in the thread on FireCalc and Taxes, a new thread has been started to discuss this issue specifically.

Two ideas that I may use are whole life insurance purchased within my professional corporation, and inter vivos charitable giving.

Over to you for more ideas and a lively debate! ]]> FIRE and Money Meadbh http://www.early-retirement.org/forums/f28/tax-reduction-strategies-in-er-66768.html Aereo? And Roku? http://www.early-retirement.org/forums/f27/aereo-and-roku-66767.html Wed, 22 May 2013 13:26:19 GMT Hi all
Now that I am ER'd I have some time to look at my expenditures. I currently have cable which I watch occasionally and almost exclusively network news. Aereo is coming to my area and considering using that and dropping the cable. Anyone from NYC with aereo experience?

I am also looking at Roku primarily as a way to watch aereo while still being able to use my Ipad for other things again any thoughts?
Thanks so much!
Nikki ]]> Other topics Nikki J http://www.early-retirement.org/forums/f27/aereo-and-roku-66767.html Printed food (chocolate and pizza so far) http://www.early-retirement.org/forums/f27/printed-food-chocolate-and-pizza-so-far-66766.html Wed, 22 May 2013 13:15:13 GMT Has anyone else seen this? I had no idea! Also, reading the Tech magazine now and getting freaked out by LARS (killing robots), printed food, and... Has anyone else seen this? I had no idea! Also, reading the Tech magazine now and getting freaked out by LARS (killing robots), printed food, and printed organs/buildings!

NASA funds 3-D pizza (and chocolate) printer - CSMonitor.com

:eek::eek::eek: ]]> Other topics citrine http://www.early-retirement.org/forums/f27/printed-food-chocolate-and-pizza-so-far-66766.html Golden Girls House http://www.early-retirement.org/forums/f29/golden-girls-house-66765.html Wed, 22 May 2013 13:00:38 GMT Heard this on NPR this morning. I could see me living like this.... Boomer Housemates Have More Fun : Shots - Health News : NPR... Heard this on NPR this morning. I could see me living like this....

Boomer Housemates Have More Fun : Shots - Health News : NPR

Quote:

Kathleen Kelly, who runs the Family Caregiver Alliance and the National Center on Caregiving in San Francisco, says she's seeing the same sort of concern in her social circle. "I'm in my 50s, and my friends are all talking about, 'Could we all move in together? Could we buy an apartment building and all live together?' There are all sorts of permutations of this conversation," Kelly says. "But it really is something that people are thinking about, particularly women."

But this was really interesting to me. As I said in this thread, people do think Medicare covers MUCH more than it actually does:

Quote:

Still, there are a lot of obstacles. One big one is that most boomers don't realize they might need help getting or paying for long-term care if their health falters.
"I call it the 70-70-70 conundrum," says Bruce Chernof, president and CEO of The SCAN Foundation, which focuses on long-term health care issues. "Seventy percent of people over the age of 65 will need some form of long-term care supports as they age," he says. But when you look at polling, "roughly 70 percent of Americans don't actually think they're likely to need it, and roughly 70 percent think Medicare will probably cover it when they get there."
The problem, of course, he adds, is that "those last two 70 percents are not true."

]]> Life after FIRE SumDay http://www.early-retirement.org/forums/f29/golden-girls-house-66765.html Wow medicare part D is tricky http://www.early-retirement.org/forums/f38/wow-medicare-part-d-is-tricky-66764.html Wed, 22 May 2013 01:59:53 GMT I take no meds at this time but have to decide real soon on a drug plan,just started to really look into it. What I see is best to have a good... I take no meds at this time but have to decide real soon on a drug plan,just started to really look into it.
What I see is best to have a good formulary,if you are stuck with a brand name drug not on the formulary,you have to pay for all of it no help.
The AARP preferred for 37.50 a month seems real good. Here are some very expensive drugs that are on the list,so expensive you hit the donut whole by the third month,total OPP 5300 for 57,000 retail cost.
With the 15 a month plan you would pay a lot more,of course if you never need any drugs then the 15 a month plan is great. But at some point,you may need some very expensive ones.
I still have my wits about me,but this is still pain to figure out all the ramifications perhaps better safe then sorry.
I had a nice chart but it did not format correctly.
Old Mike

]]> Health and Early Retirement mf15 http://www.early-retirement.org/forums/f38/wow-medicare-part-d-is-tricky-66764.html <![CDATA[17" laptop recommendations]]> http://www.early-retirement.org/forums/f27/17-laptop-recommendations-66763.html Wed, 22 May 2013 01:11:11 GMT Dell 15" just died yesterday morning....actually died during the night peacefully since it wouldn't start yesterday.....been on it's last legs for a month or more. Was thinking about going back to a desktop....but I do like dragging it out to sit on my lap on the couch. Might be switching out of my Comcast in June anyway and going back to Hulu+ and/or Netflix.....bigger screen will work better for watching. Might play some games as well....although not much into that anymore. Touch screen doesn't sound like anything I would really use on a laptop......even though it is the "in" thing. ]]> Other topics F4mandolin http://www.early-retirement.org/forums/f27/17-laptop-recommendations-66763.html