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04-21-2021, 04:19 AM
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#101
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,299
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Quote:
Originally Posted by richardf
Don’t do it, medical and dental insurance and health care will kill you unless you both are on Medicare. Cash is good. It is the number one retirement asset.
What is FIRE?
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There are many retirees on this forum who don't wait until Medicare in order to retire.
One can manage their MAGI for large tax subsidies using the Health Exchange medical/dental system.
__________________
TGIM
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04-21-2021, 05:39 AM
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#102
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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There are a number of programs out there offered by companies that function like an online bank account in that you can deposit or withdraw at will but no FDIC insurance.
Toyota's Income Driver Notes and Dominion Energy Reliability Investment Notes both pay 1.5%, as does GM Right Notes. Duke Energy, Ford and Mercedes have a similar programs but don't pay as much.
Obviously, no FDIC insurance and the credit risk of the issuer.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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04-21-2021, 06:35 AM
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#103
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,351
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Quote:
Originally Posted by pb4uski
There are a number of programs out there offered by companies that function like an online bank account in that you can deposit or withdraw at will but no FDIC insurance.
Toyota's Income Driver Notes and Dominion Energy Reliability Investment Notes both pay 1.5%, as does GM Right Notes. Duke Energy, Ford and Mercedes have a similar programs but don't pay as much.
Obviously, no FDIC insurance and the credit risk of the issuer.
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I've never heard of these. A quick search took me to the Toyota site. I skimmed the prospectus. I get that these are unsecured debt, no maturity, floating interest rate, not insured. All of that said, how can they be paying 1.5%? What's the catch? How safe is this money? How often do they adjust the rate? What's the track record for these things?
Can you suggest any sites to learn more about this type of thing?
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04-21-2021, 06:40 AM
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#104
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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No idea on the track record... they are news to me as well as of 6 months ago. The do adjust the rate periodically... none for Toyota in the last 6 months as I recall and once for the DERI notes.
No idea how they can pay 1.5% but not my problem.. perhaps they are turning around the money and issuing car loans that charge more than 1.5% would be my guess... and while no individual account money would be sticky the money would probably be pretty sticky in aggregate like bank deposits tend to be sticky. As safe as the issuers's credit and issuer's bonds to my knowledge.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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04-21-2021, 06:43 AM
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#105
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Recycles dryer sheets
Join Date: Jul 2017
Location: Pittsburgh
Posts: 300
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Quote:
Originally Posted by gauss
My 2 thoughts are:
#1) Could you do a 72(t) plan to get you to age 59 1/2 without a 10% early withdrawal penalty? You would have to run the 72(t) plan for a minimum of 5 years, but should be able to access your traditional IRA funds in this manner
#2) You say that your 401(k) does not play well with rule of 55 -- Does this mean that your plan will not allow partial distributions once you separate from service? If this is not the case, perhaps that plans could indeed be made to play well together. There is a common misconception that if the HR department does not know about the rule of 55 or explicitly mention it in the plan documents, then it is not allowed. This is untrue. All that is i needed is the ability to take partial distributions once you have separated from service.
-gauss
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My 403(b)s were all with TIAA, and TIAA told me the rule of 55 was not supported.
__________________
Retired from FT j*b 2017 @ 58, consulted PT then fully retired 2019 @ 60
AA: 54/41/5 | no pension
Into: spreadsheets, botanical art, fitness, IPAs, learning to play the piano, reading
Mantras: Carpe diem & Gratitude
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04-21-2021, 05:01 PM
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#106
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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Quote:
Originally Posted by disneysteve
I've never heard of these. A quick search took me to the Toyota site. I skimmed the prospectus. I get that these are unsecured debt, no maturity, floating interest rate, not insured. All of that said, how can they be paying 1.5%? What's the catch? How safe is this money? How often do they adjust the rate? What's the track record for these things?
Can you suggest any sites to learn more about this type of thing?
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They’ve been discussed on this forum several times in the past 6 months or so. Search through the 2020 version of the CD and Bank Promo deals thread and you’ll find some 1st hand experience but maybe not enough to satisfy your concerns.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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04-21-2021, 05:06 PM
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#107
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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Quote:
Originally Posted by richardf
.
What is FIRE?
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I didn’t see a response to this....it stands for Financially Independent Retire Early.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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04-21-2021, 06:44 PM
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#108
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,351
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Quote:
Originally Posted by jazz4cash
They’ve been discussed on this forum several times in the past 6 months or so. Search through the 2020 version of the CD and Bank Promo deals thread and you’ll find some 1st hand experience but maybe not enough to satisfy your concerns.
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Thanks.
In case anyone else is interested, the discussion starts on page 24 of that thread: https://www.early-retirement.org/for...101376-24.html
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04-21-2021, 06:59 PM
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#109
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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disneysteve, you might also want to check out this thread that looks like it just ran out of steam.
https://www.early-retirement.org/for...ms-105827.html
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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04-21-2021, 07:11 PM
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#110
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,351
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Quote:
Originally Posted by pb4uski
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Thanks. Good discussion there.
I don't think I'm going to get involved in these at this point but I was intrigued to learn about them.
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04-21-2021, 08:09 PM
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#111
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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^^^ I just added a post to that thread. I have some CD money maturing in May so I'm starting to think about them. I've had DERI and Toyota since late 2020.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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04-21-2021, 10:14 PM
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#112
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Recycles dryer sheets
Join Date: Oct 2018
Posts: 140
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Quote:
Originally Posted by RunningBum
Terrible advice to someone who needs that money for the next 5 years. Absolutely terrible.
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+1
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04-22-2021, 07:00 AM
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#113
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Full time employment: Posting here.
Join Date: Aug 2015
Posts: 550
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Quote:
Originally Posted by Midpack
I am another idiot with a pile of cash at Ally...there are no better options with the same low risk and liquidity that I know of. Many here have been faced with the same problem for years, it’s only gotten worse, with no better future on the near horizon...
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+1
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04-22-2021, 07:13 AM
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#114
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Well, you can turn extra cash sitting around earning little into something great! Just go over to the “Blow that Dough” thread.
Totally doesn’t bother me.
__________________
Retired since summer 1999.
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04-22-2021, 07:39 AM
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#115
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Moderator
Join Date: Oct 2010
Posts: 10,725
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Quote:
Originally Posted by jazz4cash
I didn’t see a response to this....it stands for Financially Independent Retire Early.
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I still recall getting this answer when I first joined the forum, but I was told it meant "f*rget it, retire early"
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04-22-2021, 09:12 AM
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#116
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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I thought it was "F__k it, retire early"
The first part being in the spirit of "Take this job and shove it".
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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04-26-2021, 07:41 PM
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#117
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gone traveling
Join Date: Apr 2021
Posts: 74
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OP considering I'm doing essentially the same thing in preparation for retiring next year I think your plan is brilliant.
I have a pension and have accumulated 5 years in cash above that for anticipated living expenses. I'll likely put some into Ally or Marcus so it is not earning nothing.
Being able to go 5 years without having to sell equities for expenses and also having cash to buy equities on sale if a correction happens is a double win.
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04-26-2021, 08:11 PM
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#118
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Recycles dryer sheets
Join Date: Aug 2013
Location: Pebble Beach & Cocoa Beach
Posts: 354
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Quote:
Originally Posted by Old Microbiologist
Don't feel like an idiot. We went 100% cash in all accounts since the beginning of April so now have roughly $1.5 M in cash.
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Might work being in all cash, might not. With the amount of money creation that is happening right now you could lose big time to devaluation (8% annual currency devaluation is 120k loss for you in one year on 1.5M). Have you considered moderate income funds or ETFs that pay dividends? An overseas dividend ETF might be good to capture the currency adjustments between the U.S. and something like Australia/NZ....
At the same time, I do understand the in and out of day trades making it easy to sleep at night. At least you know what you gained/lost for the day.
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04-27-2021, 01:20 PM
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#119
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,930
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Quote:
Originally Posted by gooddog
Might work being in all cash, might not. With the amount of money creation that is happening right now you could lose big time to devaluation (8% annual currency devaluation is 120k loss for you in one year on 1.5M). Have you considered moderate income funds or ETFs that pay dividends? An overseas dividend ETF might be good to capture the currency adjustments between the U.S. and something like Australia/NZ....
At the same time, I do understand the in and out of day trades making it easy to sleep at night. At least you know what you gained/lost for the day.
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Not sure where the 8% devaluation figure came from, but, if true, that could be called a "known" loss where a big bubble pop in the markets can be 50% without breaking a sweat. AND if there were a pop, that much cash would buy a lot of depressed stock. So, there's that.
I don't ever see going to all cash either (though never say never.) But, cash is king when stocks are in the toilet. YMMV
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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05-07-2021, 05:57 PM
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#120
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Recycles dryer sheets
Join Date: Dec 2007
Posts: 380
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Quote:
Originally Posted by GoodLife59
$600k is a lot of money. Have you laid out a detailed budget for the next 5 years? Have you accounted for things like inflation, health insurance, necessary major expenses (i.e new car, home repairs)? Once you hit 59.5 will your 401k serve your needs for the rest of your life? I’d suggest meeting with a CFP and tax specialist to drill down your specific circumstances. Major hats off to you for getting to this point. Your definitely in a position of strength.
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Thanks for sharing your thought GoodLife59
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