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Wednesday, November 26, 2014

Cashed in Defined Benefit Pension – Why it was a good idea?



(Note – the numbers below are a fiction designed to make the math simple. Before making the same choice, you will need to do the math yourself).

At a prior employer, I managed to become vested in a Defined Benefit plan before they “froze” it.   As a result, I was entitled to approximately $1,000 per month beginning at age 65.  BUT, they decided to give me an opportunity to take an annuity now (about $270) or a direct rollover to my IRA.  

Simply put, I chose the direct rollover to my IRA.  

Why? Flexibility.  Although my income right now is very good, I am in an industry that doesn’t have many 60-70 year olds.   When that time comes, I want to have the flexibility to act in my own interest. 

Saturday, October 25, 2014

Used IRA to Pay off Student Loans

Although paying the penalty tax of 10% to make a withdrawal out of an IRA is harsh (plus the regular tax), we decided to make the plunge.   First of all, the amount of my final student loan was less than $10,000.  Second, the payment $325 per month was significant.

By biting the bullet, I was able to improve my cash flow during a time when daycare is hurting my cashflow.

Saturday, July 7, 2012

The Blog is Back

Now that my little girl is getting a little more mobile, I am ready to start blogging again.

My Asset Allocation - July 2012

    
Essentially, all of our "investments" are in our tax protected accounts. Our taxable accounts consist almost entirely and are invested in savings accounts and CD's.


Investment allocation:

Domestic Stock 65%

Foreign Stock 7%
Bonds 15%
Cash Equivalents 13%


YTD Performance:
Account 1: + 7.14% - We are adding to this account on a bi-monthly basis. It is almost entirely invested in equity mutual funds.
Account 2: + 3.22% - A rollover IRA, I cannot add to this account. Almost all of my Fixed Income investments are in this fund.

Sunday, July 3, 2011

Saving Money on Cable Bill

First of all, I have ATT Uverse which is vastly better than Comcast was. Nevertheless, my bill has been creeping up and I took some action to reduce my bill. First, I eliminated the sports package and then I cut back on my base package. Saved about $30 per month.

Friday, July 1, 2011

Bought a new car!

While I loved my Silverado and didn't want to sell it, it's guzzled gas and wasn't baby friendly. As a result, I have replaced it with a 4 cylinder Accord. With 0.9% financing and good resale on the truck, it was something that I had to do.

Saturday, May 14, 2011

Best $66 that I ever spent

My wife and I just returned from our baby girl's 2nd water babies class. I don't know who invented swim classes for 8 months old. I do know that they were GENIUS. Since she cannot swim by herself, my wife and I got to spend wonderful time playing with a little girl. Last week, I enjoyed it so much that I nearly cried.

Sometimes, spending money is worth it.

Saturday, April 23, 2011

Comcast Defeat is Final

It took 3 years and many phone calls, but I have finally convinced Comcast that I don't actually owe them any money. Had they been able to manage the bill correctly, I would never have moved to ATT Uverse.