Retirement Income

champshire · March 05, 2025, 05:14 AM

For what it's worth I have been buying ETF's and CEF's to try and diversify my money. I am part of a group on Facebook that is geared for Income from ETF's. My goal is 10% a year and I think it's possible.

I have also been trying my hand at wheeling options and am doing ok with that as well. Will see how I preform over the year as I grow and learn.

There are a lot of nice ETF's that have capital appreciation or steady price action with little to no Nav decline. I like getting paid every week in divys and also at the end of the month again. Way better than the 3.7% Capital One is paying my savings account.

For the record, T-bills are still paying 4.25% if you want to go that route.

Dan_AKA_ROY23 · March 05, 2025, 07:10 AM

Consider tax implications, Jim. Do you start converting your Rollover into a ROTH? Maybe in increments over 4 or 5 years? It's gonna cost a lot, somewhere around 30% of principal.A full conversion now would cost a LOT in taxes but, it could be the better choice. Waiting later is what the gov't encourages us to do. Why? Do they want to save us money? I seriously doubt it. (Pay the gov't now and less later)

Talk to someone who's an expert on taxes.

mkd · March 05, 2025, 12:43 PM

Quote from: Dan_AKA_ROY23 on March 05, 2025, 07:10 AMConsider tax implications, Jim. Do you start converting your Rollover into a ROTH? Maybe in increments over 4 or 5 years? It's gonna cost a lot, somewhere around 30% of principal.A full conversion now would cost a LOT in taxes but, it could be the better choice. Waiting later is what the gov't encourages us to do. Why? Do they want to save us money? I seriously doubt it. (Pay the gov't now and less later)

Talk to someone who's an expert on taxes.

What is the required minimum distribution starting age now? 75 or so, eh?
Roth conversions only(?) make sense if you 1. Have cash outside the 401k to pay the taxes with and 2. Enough time to take advantage of the tax free growth.
I think he's close to RMD date, so no use..

mkd · March 05, 2025, 12:45 PM

Quote from: champshire on March 05, 2025, 05:14 AMFor what it's worth I have been buying ETF's and CEF's to try and diversify my money. I am part of a group on Facebook that is geared for Income from ETF's. My goal is 10% a year and I think it's possible.

I have also been trying my hand at wheeling options and am doing ok with that as well. Will see how I preform over the year as I grow and learn.

There are a lot of nice ETF's that have capital appreciation or steady price action with little to no Nav decline. I like getting paid every week in divys and also at the end of the month again. Way better than the 3.7% Capital One is paying my savings account.

For the record, T-bills are still paying 4.25% if you want to go that route.

Nice thing about money market funds (or many of their mutual funds) in a Schwab margin account, that can be used as collateral for CSP. Double dip!!!!!

Tim Johnson · May 14, 2025, 09:38 AM

Quote from: Jim at Gentex on February 06, 2025, 09:50 AMI think most of you know I will be retiring in March after 34 years with my present employer, and a total of 50 years in the workforce.

My current employer offered a 401k plan years ago and I got in.
Now that I am ready to retire, I am looking at restructuring my portfolio for a long-run, low-risk strategy.

I found this article interesting and was wondering what you guys think about it.

https://www.msn.com/en-us/money/savingandinvesting/warren-buffett-s-ideal-investment-strategy-the-2-fund-portfolio/ar-AA1flW0W?ocid=entnewsntp&pc=U531&cvid=0b1191310d8544ffa79fd1c6722693e6&ei=110

Seems simple and straight to the point but I could be missing something.

I'm currently looking for a single floor retirement house. My wife wants to move to Los Vegas but hates gambling so I asked her why Vegas. I didn't get an answer so I've been looking in the Vegas area. After a week or two I asked again " why Vegas?" Her answer was "for you idiot. You couldn't figure that out?"
So now I know to keep looking for our retirement house in Vegas!

Rstewart · May 14, 2025, 01:44 PM

I too would like to retire in a desert region. Unfortunately, I'll probably have to work till I'm dead

But Vegas? Na, I'm good

mkd · May 14, 2025, 03:18 PM

Quote from: Rstewart on May 14, 2025, 01:44 PMI too would like to retire in a desert region. Unfortunately, I'll probably have to work till I'm dead
But Vegas? Na, I'm good

Parump is nice this time of year😄

mkd · May 17, 2025, 03:53 PM

Pro tip:
I'm getting into MLPs. Master limited partnerships. Midstream oil and gas to be more specific. They pay very decent return of capital rates, which lowers your cost basis. So it's not actually a taxable dividend in the year you receive it. Eventually your cost basis could get to zero, where the payments would be taxable income in that year. Likely when our retired years income and tax liability is lower.
If you never sell your 'units' (not shares), and have your children inherit the units, they get a step up in cost basis. They could sell and pay zero capitol gains.!
So tax free income for you, without being tied into a 59.5 year old 401k, and you kids won't get slaughtered with taxes.

Tim Johnson · May 19, 2025, 09:23 AM

Quote from: mkd on March 03, 2025, 05:07 PMSo what is everyone's retirement number?
Age or dollar value saved?
This should go over like a fart in church 😁

My retirement will come after we have found our retirement house.

CNCAppsJames · May 26, 2025, 07:11 PM

Take a look at Henderson Nevada Tim. My aunt and uncle live there. They got out of the People's Republik of Kommieforniastan so their money could go further. They love it. They are in some retirement community.

Tim Johnson · May 28, 2025, 09:37 AM

Quote from: CNCAppsJames on May 26, 2025, 07:11 PMTake a look at Henderson Nevada Tim. My aunt and uncle live there. They got out of the People's Republik of Kommieforniastan so their money could go further. They love it. They are in some retirement community.

Thanks James, I take a look.

CNCAppsJames · May 28, 2025, 04:13 PM

Awwwww. The brokeback lunatic misses his asylum.

TylerBeer · May 28, 2025, 04:36 PM

I was just in Vegas for 5 days. You couldn't pay me to live there, absolutely miserable being outside.

Aren't you guys already all rich yet, I thought your political genius translated to wealth?

mkd · May 28, 2025, 06:26 PM

Quote from: TylerBeer on May 28, 2025, 04:36 PMI was just in Vegas for 5 days. You couldn't pay me to live there, absolutely miserable being outside.

Aren't you guys already all rich yet, I thought your political genius translated to wealth?

Depends on what you call Rich. I only have 1/2 to 1/3 of what I "should" have by my age. I've definitely switched my focus from destroying liberals on the Internet to managing money. Planning selling blood plasma to fund out of the money call options.

CNCAppsJames · May 28, 2025, 07:12 PM

According to the 2018 Global Wealth Report from Credit Suisse Research Institute, you need a net worth of $871,320 U.S. Credit Suisse defines net worth, or "wealth," as "the value of financial assets plus real assets (principally housing) owned by households, minus their debts."

By ANY meaningful measure of "wealth", I would say evey single one of us in here is definitely in the top 5%.

That's doing OK in just about any book I'd say.