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If you read my comment, you’ll see that his “upset the asset allocation” remark is exactly the part I questioned and asked him to clarify. And it sounds as if you are also questioning that remark. But since you made a different point, I’ll comment about that as well. Hundreds of thousands of...

Upset the asset allocation? Perhaps I am misunderstanding what you write, so please correct me. If equities drop significantly, then wouldn’t an investor buy more equities to preserve his asset allocation? And if he is a retiree, where would he get the cash to buy more equities? I would have to...

Tips automatically added to bill Just got back from a Miami Beach vacation. We ate at a dozen or more South Beach restaurants. Every one added an automatic 18% tip to our bill. Some clearly pointed that out. Others hid the explanation in tiny print.I don’t see this in the Dallas area, and don’t...

Not liking rules of thumb Several replies mention allocation rules of thumb such as 100-age or 120-age. But how can such simple answers be right for all households or even most households? Households vary greatly in their financial situations and in their long term goals: - Most have SS...

I expect most of you to disagree with what I am going to post, but I’ll go ahead anyway: 1. Social Security funding problems are not 12 or 15 years away. For the nation, they are here now. Since 2010, Social Security taxes collected have been less than benefits paid out. So the Treasury Dept...

I agree with all those reasons. But another important factor for me is that I just don’t like to sit next to young people. There are few in first class, and those that are generally seem well-mannered and dress conservatively. Rarely a rambunctious child in first class, either.

A few suggestions from someone who faced some of these issues seven years ago when I retired at 62: 1. If you can expect to live 40 or more years, 31% of your portfolio in equities seems way too conservative - especially if you have SS and a small pension for a portion of your non-discretionary...

Do you follow the Boglehead forums? Here’s a link to some discussion about retirement withdrawal rates. You could then go from their to the different discussions about each withdrawal strategy. https://www.bogleheads.org/wiki/Withdrawal_methods

Here’s an article which may be more detailed than some you’ve read. This associate of Michael Kitces explains how one can safely withdraw more than the standard 4% if he can flex his spending during temporary market downturns...

How Much Can I Spend in Retirement by Wade Pfau has been recommended to me by two smart guys. I have not yet purchased it. You may want to also read the reviews at Amazon...

Retirement Income Redesigned edited by Harold Evensky and Deena Katz has been a tremendous help for me. It’s expensive at $63 new, but good used copies are available at Amazon for about $13. Each chapter has a different expert author. Some chapter titles: Withdrawal Strategies: a Cash Flow...

When you reach 55, you might consider asking your employer for parttime status. Paying medical expenses is the big unknown. Also, not a good idea to ever assume you can go back to work if things don’t go as planned. Finding a good job after 55 has been very challenging for some of my friends. A...

My wife and I lived in Memphis in the 80s and 90s. We always enjoyed blues and other music on Beale St. Corky’s was our favorite BBQ place, and Commisary in Germantown probably second. Rendezvous was way too crowded and way too loud for us.

Not quite there yet, but close. The S&P 500 closed at 1565 one day in October, 2007 - Oct 10, I think. Of course, if one includes dividends, the total nominal gain since that date exceeds 100%.

Medicaid laws vary by state. One important consideration is how much of a spouse’s savings must be spent before Medicaid will cover nursing home care. As I understand it, in many states almost 50% of combined IRA totals must be spent first, regardless of who owns the IRA. Furthermore, the...

Senator, I agree completely. No job or program of study forces a kid to grow up as well as a couple of years of military service. It worked for me and for others I knew well. The downside, for the kid, of course, is that he could lose a limb or a life. The downside for the parents is that they...

Our spending went up temporarily, but we had planned for that. We paid off the mortgage - for emotional reasons, not because it was smart financially. We’re traveling much more and spending more on trips. Golf is about the same, as I already had membership. But commuting costs are now zero...

Please note that I said proposals from economists I’ve seen. Probably half the dozen or so economists I’ve read on the subject do not propose or analyze solutions. Those who did advocated multiple part solutions very close to what I listed. I apologize. For no 2, I meant the income levels I...

Sir, I’ve probably read every Trustees annual report offerred for the past 15 years. Relying on a SSA report to gain undersanding of SS financial condition is like relying on Enron’s annual report to decide whether to invest in the company. Every thing they both write is true, but also...

Not sure if we’re allowed to speculate on what the government might do. But I think we can talk about how economists’ proposals might impact our rtirement planning. Here’s what I’ve generally seen proposed by economists for solving the SS shortfall (which is real today, not in 16 years): 1. SS...

Sorry, but you are mistaken. Interest only counts if cash is moved as a result. Treasury never sends cash to SS for the accounting entry “Accrued Interest”. Again, Treasury does not send cash to SS. Social Security checks are sent to SS beneficiaries directly from Treasury - either via paper...

All that matters is cash flow. SS benefits cannot be paid from “interest” which is just an accounting entry in the Trust Fund. The federal government understands that the Social Security Trust Fund cannot pay benefits. From page 385 of the Analytical Perspectives section of President Obama’s...

At present, you are correct in that government can more easily track income. I guess I should have said “high income” rather than “assets above $2 million”. I think most Americans with $2 million in assets hold most of it in tax-deferred accounts. With RMD, the government will know exactly who...

Well, I understand your point. We may disagree about how many people means testing will hit. IMO, any couple with total retirement income over $150k annually will be at risk for partial reduction in benefits. If they lose half their $35k SS benefit due to means testing, they’ll still survive...

I think that high income SS beneficiaries are likely to be screwed the most. But I’m not sure eliminating 100% of their benefits will be enough to make up the shortfall. If, by cap, you mean a cap on benefits, then I agree that has a chance. But consider those who saved nothing but are...