Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-23-2010, 09:25 AM   #21
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,156
Quote:
Originally Posted by travelover View Post
I own a little Wellesley, but I like to keep my equities and bonds separate so that I can just sell bonds if I need to, in an extended stock downturn.
I have more than a little Wellesley (~40%) but that still leaves a lot of room for individual equity and bond funds plus cash to play with rebalance and ride the market roller coaster.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-23-2010, 10:09 AM   #22
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
Quote:
Originally Posted by travelover View Post

My DW is totally clueless about investments and I've instructed her to just convert everything to Wellesley when I kick off.
Something similar here. DW's IRA is 65% Wellesley & 35% VG Star fund, not a bad combination, it has outperformed the 1/3 of my IRA I manage myself
But best of all, her portfolio is one she can manage by herself. I recommend she just put the rest of our assets into these two funds and keep it simple when the time comes.
__________________

__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Old 09-23-2010, 11:13 AM   #23
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 3,432
Quote:
Originally Posted by REWahoo View Post

I'm retired and have ~40% of our nest egg in this fund. It pays generally between 3-4% in dividends, currently 3.0%. The expense ratio is 0.21% (Admiral shares), very low for a managed fund.

It works well for me, but like you say, it's just one man's opinion...
How are you taking distributions? Just using the dividends?

Or are you reinvesting dividends but selling some shares?
__________________
explanade is offline   Reply With Quote
Old 09-23-2010, 06:10 PM   #24
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Hello Chinaco - do you have annuities ? I would like to understand more precisely how they work (i.e. taxes, fees, etc.). In my opinion, annuities sound like an ideal financial product when I reach 62.

Quote:
Originally Posted by chinaco View Post

According to this site... a non-COLA SPIA for 32k/year would be in the neighborhood of 500k.

Immediate Annuities - Instant Annuity Quote Calculator.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 09-23-2010, 06:20 PM   #25
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,156
Quote:
Originally Posted by explanade View Post
How are you taking distributions? Just using the dividends?

Or are you reinvesting dividends but selling some shares?
I've been spending the distributions and also withdrawing from our cash account (we're also both getting SS).

I should point out that in addition to the 40% we have in Wellesley, we have another 20% in Wellington (also a balanced fund) and the remaining 40% in equity and bond funds + cash. I'll need to top up the cash bucket in the 4th quarter and I'll sell some bond funds to do so.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-23-2010, 06:59 PM   #26
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Quote:
Originally Posted by obgyn65 View Post
Hello Chinaco - do you have annuities ? I would like to understand more precisely how they work (i.e. taxes, fees, etc.). In my opinion, annuities sound like an ideal financial product when I reach 62.
Here's how they work, you give your money to a broker so he/she can find the one for you with the highest expenses. Then the broker sits back and collects your money via the ER.

Take some 5% 10 year CD's with Pen Fed and call it a day.
__________________
73ss454 is offline   Reply With Quote
Old 09-23-2010, 07:55 PM   #27
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 3,432
Quote:
Originally Posted by REWahoo View Post
I've been spending the distributions and also withdrawing from our cash 'bucket' (we're also both getting SS).

I should point out that in addition to the 40% we have in Wellesley, we have another 20% in Wellington (also a balanced fund) and the remaining 40% in equity and bond funds + cash. I'll need to top up the cash bucket in the 4th quarter and I'll sell some bond funds to do so.
So it's best to reinvest dividends and sell shares as needed, as opposed to cashing the dividends directly?
__________________
explanade is offline   Reply With Quote
Old 09-23-2010, 07:58 PM   #28
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,156
Quote:
Originally Posted by explanade View Post
So it's best to reinvest dividends and sell shares as needed, as opposed to cashing the dividends directly?
If that's the case, I'm doing it all wrong since I'm cashing/spending the Wellesley dividends, not reinvesting them.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-23-2010, 08:59 PM   #29
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 3,432
Sorry I misunderstood you.

I guess if one should be so fortunate that one doesn't need all the annual dividend distributions to meet living expenses, you could reinvest the portion you don't need.

But dividend reinvestment option is all or nothing.
__________________
explanade is offline   Reply With Quote
Old 09-23-2010, 09:06 PM   #30
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,156
Quote:
Originally Posted by explanade View Post
But dividend reinvestment option is all or nothing.
Not necessarily.

As an example, Wellesley pays quarterly dividends and you can easily change the designation (cash, reinvest) online provided you do so at least a couple of weeks or more in advance of the distrubution date. So if you were taking the dividends in cash the first part of the year and discovered at some point in the year you didn't need the income, you could make the change.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-23-2010, 09:30 PM   #31
Recycles dryer sheets
 
Join Date: Sep 2010
Posts: 91
Quote:
Originally Posted by 73ss454 View Post
Here's how they work, you give your money to a broker so he/she can find the one for you with the highest expenses. Then the broker sits back and collects your money via the ER.

Take some 5% 10 year CD's with Pen Fed and call it a day.
No such thing as a 5% 10 year CD with Pen Fed that I can see.
__________________
afntrn56 is offline   Reply With Quote
Old 09-23-2010, 09:32 PM   #32
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Quote:
Originally Posted by afntrn56 View Post
No such thing as a 5% 10 year CD with Pen Fed that I can see.
This has been an on going discussion on the forum. Trust me, Pen Fed has it.
__________________
73ss454 is offline   Reply With Quote
Old 09-23-2010, 09:35 PM   #33
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Quote:
Originally Posted by REWahoo View Post
I've been spending the distributions and also withdrawing from our cash 'bucket' (we're also both getting SS).
Bucket? Don't you think you should watch your language?
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 09-23-2010, 09:41 PM   #34
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,156
Quote:
Originally Posted by Rich_in_Tampa View Post
Bucket? Don't you think you should watch your language?
CHP...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-23-2010, 09:47 PM   #35
Recycles dryer sheets
 
Join Date: Sep 2010
Posts: 91
Quote:
Originally Posted by 73ss454 View Post
This has been an on going discussion on the forum. Trust me, Pen Fed has it.
So how does one get it then?
__________________
afntrn56 is offline   Reply With Quote
Old 09-23-2010, 09:50 PM   #36
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
You have to be a member first. Once you are a member it should show up. I reserved on CD for January. I'll try and find the thread which explained how to find it.
__________________
73ss454 is offline   Reply With Quote
Old 09-23-2010, 10:06 PM   #37
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Just go to the search bar and put in Pen Fed CD's and the thread will pop up.
__________________
73ss454 is offline   Reply With Quote
Old 09-23-2010, 10:16 PM   #38
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Quote:
Originally Posted by REWahoo View Post
I'm guessing muchas cervesas.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 09-23-2010, 10:23 PM   #39
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
This should help you out.

Where did Penfed's promo CD's go?
__________________
73ss454 is offline   Reply With Quote
Old 09-24-2010, 12:25 AM   #40
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Hello 73ss - when I enter $100,000 as the $ amount I want to invest for example in this link:

Immediate Annuities - Instant Annuity Quote Calculator.

I get $589 a month. That's a 7% yield. Why would I want to go with a 5% CD then (assuming I do not have any heirs) ?

Quote:
Originally Posted by 73ss454 View Post
Here's how they work, you give your money to a broker so he/she can find the one for you with the highest expenses. Then the broker sits back and collects your money via the ER.

Take some 5% 10 year CD's with Pen Fed and call it a day.
__________________

__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
DRINKERs (Dual Retirement Income No-Kids Early Retirement) Kroeran Life after FIRE 58 11-24-2009 07:11 PM
Transitioning from semi-retirement to retirement? RDamien FIRE and Money 0 06-17-2008 02:01 PM
Paritioned portfolios of Target Retirement 20XX for each decade of retirement chinaco FIRE and Money 11 03-15-2007 06:06 PM
Retirement Accounts and Early Retirement heebygeeby Young Dreamers 9 03-14-2007 04:56 PM
Duration of retirement and size of retirement fund Cool Dood FIRE and Money 9 06-28-2006 09:34 AM

 

 
All times are GMT -6. The time now is 04:43 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.