U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-23-2019, 11:15 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,399 posts, read 2,016,647 times
Reputation: 3385

Advertisements

@kentucky62; re RMDs.
I imagined this issue in 2008. It was one test of various IRA scenarios. Chose dVA's with GLWB option. Working out fine 11 years later at 69 & 72. There is a tax quirk when using IRA within a GLWB annuity.
Reply With Quote Quick reply to this message

 
Old 08-23-2019, 11:58 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,399 posts, read 2,016,647 times
Reputation: 3385
Lost #73
Quote:
Originally Posted by hikernut View Post
Of course it's easy to quote numbers today, long after the fact, and say that it all worked out. I cannot envision the despair that must have permeated the lives of people during that era. Most did not own shares, but for the ones that were in the market... they saw a bear lasting nearly four years with the broad averages losing about 90% of peak value. If something like that happened today I expect there are vanishingly few who would stay the course.
... Although my older bro never said anything in 2007-2008, you could see the increasing fear in his eyes.. NY careerist banker, fairly high corporate level, PhD economist. Ten years with NY-FedRv in late 60's to late 70s...We were ready for early retirement in 2009 as spouse hit 62. We had planned to sell the farm and home for downsizing. So when 2008 came into full fledge recession and near total collapse of the banking system, no bank would lend on a house, and no person could buy the farm in a cash purchase or come up with a cash down with us carrying the balance. Further, my wife worked for a company that supplied material to Boeing 787, which was getting further and further behind in that build. And with wife being pension qualified and SS qualified for early benefits, she was under enormous pressure to retire. And our IRA balanced portfolio was down 35-40% from its peak. We saw 10 years of high level IRA and 401k contribution vanish. I won't recount the problems our son had in getting a job. ...
Yes, hikernut, it was a very scary time. I never told my wife the depth of our losses. I think she guessed most of it. I hedged as much.as I dated and allowed into GLWB annuities so that we could limit any further erosion to further Income and get most of the upside in a recovery. Long straddle.
Reply With Quote Quick reply to this message
 
Old 08-24-2019, 02:22 AM
 
73,066 posts, read 72,858,103 times
Reputation: 50625
Quote:
Originally Posted by k7baixo View Post
And, you should be able to “stress-test“ your portfolio with or without a financial planner.
while you can , the danger point is the first 5 years . having an extended downturn day 1 before an up cycle is the Achilles tendon of a safe withdrawal rate ...it is like a trader having a string of losing trades out of the box before having some profitable trades ...
Reply With Quote Quick reply to this message
 
Old 08-24-2019, 10:12 AM
 
Location: Tucson/Nogales
17,605 posts, read 21,475,808 times
Reputation: 24608
Losing home equity in a recession shouldn't even be a worry, as housing prices fall virtually everywhere

And, you'd think that crime would skyrocket during a recession, and what's weirder than weird, is crime rates tend to drop.

I lived in Las Vegas during the last Great Recession, and no city was harder hit than Las Vegas, and I would have expected it to be too dangerous to even walk around my neighborhood at night, but no incidents during those hard times in Las Vegas.

I've been through 5 recessions in my 69 years, and the spacing has been roughly 8-10 years apart, and based on that, we're over due for one. I pity those going through their very first recession.
Reply With Quote Quick reply to this message
 
Old 08-24-2019, 10:38 AM
 
Location: equator
3,745 posts, read 1,643,449 times
Reputation: 9348
Quote:
Originally Posted by mathjak107 View Post
Speculating is where most get burned .....to date near no one ever lost a penny in any broad based fund if they exhibited good investor behavior and properly matched the funds to the time frame , it would be impossible short of fraud since no fund is lower over any typical accumulation or retirement time frame .... in fact a 50/50 mix never lost money over any 10 or 20 year period .....

So all these loses you hear about are people speculating in individual stocks and bonds or their own bad behavior
I've heard you say similar reassurances before, and it does ease my mind. We have zero knowledge or interest in the market and have these Vanguard/Fidelity type funds that are described this way. No speculation or dabbling here.

Always appreciate your thoughts, though the non-humorous ones generally fly right over my head.
Reply With Quote Quick reply to this message
 
Old 08-24-2019, 11:50 AM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,399 posts, read 2,016,647 times
Reputation: 3385
post #64
Quote:
Originally Posted by mathjak107 View Post
Your thinking is not quite right for a few reasons....retirees usually have diversified portfolios they spend from to live off ....that is generally bonds and cash instruments not equities.

Any rmds just get a tax status change in effect ....you can sell in the deferred to take the rmd and rebuy the same exact thing again in the taxable account down at the same levels ..basically you are just switching pockets.
There is a mis conception that rmds get spent .. some might under the right circumstances but most of the time the rmds are bigger then you ever want to take .

So it usually just involves mirroring the portfolio you had only with a different tax status.


You are over thinking this
Some pockets are leaky. Some pockets are better stitched.
Presently I am taking money from the better stitched pocket into the leaky pocket.
I've come to the conclusion that even David Koch, the maker and destroyer of many, did not make it to age 80. I think I can make it to his age with the same prostate ailment. RIP, Mr. Koch.

Last edited by leastprime; 08-24-2019 at 12:49 PM..
Reply With Quote Quick reply to this message
 
Old 08-24-2019, 12:15 PM
 
73,066 posts, read 72,858,103 times
Reputation: 50625
Quote:
Originally Posted by leastprime View Post
post #64

Some pockets are leaky. Some pockets are better stitched.
Presently I am taking money from the better stitched pocket into the leaky pocket.
I've come to the conclusion that even David Koch, the maker and destroyer of many, did not make it to age 80. I think I can make it to his age with the same prostate ailment. RIP, Mr. Koch.
if you got clothes with leaky pockets and leaky pockets are not good for you then you are keeping the wrong clothes and should have replaced them ... there are all kinds of clothes out there without leaky pockets ....
Reply With Quote Quick reply to this message
 
Old 08-24-2019, 12:42 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,399 posts, read 2,016,647 times
Reputation: 3385
^ a leaky pocket is good for me. I figure about 5-8 years of good spending. About 2 years in LTC (have LTCi); If I love longer, it's going to be on the LTC insurance company and on the annuity company's reserves.
Reply With Quote Quick reply to this message
 
Old 08-24-2019, 12:51 PM
 
73,066 posts, read 72,858,103 times
Reputation: 50625
Quote:
Originally Posted by leastprime View Post
^ a leaky pocket is good for me. I figure about 5-8 years of good spending. About 2 years in LTC (have LTCi); If I love longer, it's going to be on the LTC insurance company and on the annuity company's reserves.
the nice thing about our partnership plan for ltc with the state is , nothing is on me ... when the 3 years insurance runs out the state gets the bill .
Reply With Quote Quick reply to this message
 
Old 08-24-2019, 12:52 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,399 posts, read 2,016,647 times
Reputation: 3385
Quote:
Originally Posted by mathjak107 View Post
if you got clothes with leaky pockets and leaky pockets are not good for you then you are keeping the wrong clothes and should have replaced them ... there are all kinds of clothes out there without leaky pockets ....
ref post #86
You mis- read the post. I.am purposely putting money into the leaky pocket.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top