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Old 06-06-2011, 06:17 PM   #21
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Originally Posted by rct687
I appreciate all the feedback. Hopefully SS retirement will still be in a viable form and the retirement age not jacked up to 80 or so (but wouldn't be surprised if this happens)!

Will check out Bogleheads. What I'm looking for is a low fee fund to invest in for the long-haul and not worry too much about reallocating - due to neurological issues, any DIY effort is a disaster. Need a fund "for Dummies" to put $ in and not worry about for the long-haul. Preferably, one or two funds for all of my assets. Heard of Vanguard but not sure what the choices are - anyone here have experience? Or a similar low/no-load fund?

Thank you again for all of the suggestions - will try to be more proactive!
Firecalc is a neat tool. It tells nothing of future returns, though. There is a lot of uncertainty in the market and if you are unlucky, a couple of negative years in the near future could very well harm your prospects of reaching SS age with any money. Theoretically, you can withdraw 4% annually or about 19000 a year from a properly constructed portfolio. To be safe, 3% or 14500 would be better. Perhaps you could find some way of obtaining the 8 thousand shortfall by renting a room out or part time work. Yours is a case where an annuity to get you to SS age might be considered. You can go online at vanguard.com and there are tools to use that would show you how much you would need to provide 22k in income. There are many ways to approach your problem, but to be honest, I think trying to get 480 k to last 30 plus years would entail too much risk for you. I'm interested in what others think here.
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Old 06-06-2011, 06:43 PM   #22
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Originally Posted by Gatordoc50

Firecalc is a neat tool. It tells nothing of future returns, though. There is a lot of uncertainty in the market and if you are unlucky, a couple of negative years in the near future could very well harm your prospects of reaching SS age with any money. Theoretically, you can withdraw 4% annually or about 19000 a year from a properly constructed portfolio. To be safe, 3% or 14500 would be better. Perhaps you could find some way of obtaining the 8 thousand shortfall by renting a room out or part time work. Yours is a case where an annuity to get you to SS age might be considered. You can go online at vanguard.com and there are tools to use that would show you how much you would need to provide 22k in income. There are many ways to approach your problem, but to be honest, I think trying to get 480 k to last 30 plus years would entail too much risk for you. I'm interested in what others think here.
I just checked vanguard and for a 45 year old female, a 200k premium will provide about 21K a year for 10 years with a 2% increase each year. You could then take the remaining 280K and be more aggressive with it . My suggestion would be to open an account with Vanguard, talk to someone other than a dentist like me and then report their recommendations back here before proceeding to get some feedback. Good luck.
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Old 06-07-2011, 08:41 PM   #23
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Interesting suggestions, thanks! An annuity certainly sounds attractive from the looks of it; will do some more research on Vanguard.
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Old 06-07-2011, 08:56 PM   #24
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The guy that did my house renevation and new roof was on ssi and so is his son, go figure.
SSI is a different program from SSD.

SSD is provided by the federal government based upon your SS contributions over your "working life" to date.

SSI is a state program for those who are low income and are not eligible for SSD. While the federal government helps fund the state, it is a completely different program.

With SSD, you can get Medicare for health coverage (after a two year wait). With SSI, your health needs are met by Medicaid - another state (not federal) program.
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Old 06-08-2011, 06:47 AM   #25
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Interesting suggestions, thanks! An annuity certainly sounds attractive from the looks of it; will do some more research on Vanguard.
Great. I'm referring to a single premium immediate annuity. Not a variable annuity. Vanguard is a great choice because they offer good funds, annuities, etc at a good price. But they are not a fiduciary. That is they have no responsibility to act in your best interests. You should be commended for accumulating 480 K by age 44. Especially after going thru the dot com bubble, 9/11, the real estate bubble, and the market crash of 2008. Now you are entering the arena of the people who caused most of those busts. The financial arena. Tread very carefully!
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Old 06-08-2011, 10:07 AM   #26
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Interesting suggestions, thanks! An annuity certainly sounds attractive from the looks of it; will do some more research on Vanguard.
You can also create your own ten year annuity using a bond ladder of treasuries, CDs, and government agency bonds. It seems after a little research that the insurance companies are offering you a whopping .46 % annual interest above what you can do on your own. And you are getting AAA vs. Their AA. That's why you have them put their offer on the table and then do your homework. By the way, I'm educating myself here also, I'm not a stalker. Lol
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Old 06-08-2011, 10:13 AM   #27
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You can also create your own ten year annuity using a bond ladder of treasuries, CDs, and government agency bonds.
While I won't debate you on your suggestion (and yes, I do hold an SPIA), just be sure to include how you are going to get a return of your own investment (on a monthly basis) on your suggestion to also cover the additional reduction in investment capital over the alternative option you suggest.

An SPIA "pays" not only the return of your investment premium, but also the actual premium you paid, during the life of the defined policy, during the payout - either term or life.

Most folks that talk about "alternative investments" don't include how they are to recover their principal, during a payout, and they don't do the calculation assuming that you are withdrawing a portion of your original "investment" over the long term.

When looking at "investment ladders" (whatever alternative product your choose), this is a subject that is normally not discussed, and should be when you are comparing a product (such as an SPIA) to alternatives.

Just something to consider...
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Old 06-08-2011, 10:24 AM   #28
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Here is a thread on how to build your own annuity: How to replicate an equity-indexed annuity (EIA)
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Old 06-08-2011, 10:50 AM   #29
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While I won't debate you on your suggestion (and yes, I do hold an SPIA), just be sure to include how you are going to get a return of your own investment (on a monthly basis) on your suggestion to also cover the additional reduction in investment capital over the alternative option you suggest.

An SPIA "pays" not only the return of your investment preimum, but also the actual preimum you paid, during the life of the defined policy, during the payout - either term or life.

Most folks that talk about "alternative investments" don't include how they are to recover their principal, during a payout, and they don't do the calculation assuming that you are withdrawing a portion of your original "investment" over the long term.

When looking at "investment ladders" (whatever alternative product your choose), this is a subject that is normally not discussed, and should be when you are comparing a product (such as an SPIA) to alternatives.

Just something to consider...
Excellent point. I just did a quick and dirty using the fidelity website and their calculation of yield. Not a true apple to apple. Boy, I hate to tie up money at these rates.
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Old 06-08-2011, 11:35 AM   #30
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I have had countless tenants over the last 20+ years who collected SSI/SSDI ... nearly all were employable as they were fluently bi-lingual. But they chose to stay home.

Rumor was there was great lawyer who could get "anybody" onto the dole.

Your chances are only as good as your legal team. Need to know what your lawyer's success rate is. Then shop the case to several others. My understanding is appeals are welcome.
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Old 06-14-2011, 08:22 PM   #31
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Great. I'm referring to a single premium immediate annuity. Not a variable annuity. Vanguard is a great choice because they offer good funds, annuities, etc at a good price. But they are not a fiduciary. That is they have no responsibility to act in your best interests. You should be commended for accumulating 480 K by age 44. Especially after going thru the dot com bubble, 9/11, the real estate bubble, and the market crash of 2008. Now you are entering the arena of the people who caused most of those busts. The financial arena. Tread very carefully!
Certainly will tread carefully. My funds took a big hit in 2008, but it could have been worse due to a conservative allocation. From reading some of the other threads here, it looks like the real inflation rate may be around 5%(?) this has me worried.
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Old 06-14-2011, 09:14 PM   #32
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If the dude that dresses and acts like a baby can get SSDI, how hard can it be to qualify?

Senator questions benefits to 'adult baby' - Washington Times
Thanks Ronnieboy for bringing this back. This was posted on the forum a month ago, and I had steam coming out my ears for 2 weeks over this. Now you got me going again. This big baby needs a good adolescent paddling behind the woodshed, and I am more than willing to provide the much needed service, that "mommy" obviously isn't capable of!
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Old 06-16-2011, 12:10 AM   #33
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Thanks Ronnieboy for bringing this back. This was posted on the forum a month ago, and I had steam coming out my ears for 2 weeks over this. Now you got me going again. This big baby needs a good adolescent paddling behind the woodshed, and I am more than willing to provide the much needed service, that "mommy" obviously isn't capable of!
It sure looks like he won't have his SS taken away. Been following this story for a while....lol
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Old 06-16-2011, 12:03 PM   #34
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It sure looks like he won't have his SS taken away. Been following this story for a while....lol
I could be wrong, but somehow I don't think when our politicians set up this safety net several generations ago they intended it to be used for 30 year old babies and lottery winners!
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