Why did you go back?
Need money? Bored at home?
Very curious as I plan to retire in the next year or so and I want to make sure I am not overlooking anything
Klaymen was pretty open about his finances here and hoping to do a part time gig for a while. I assume that eventually worked out, so good for him.
I by default assume both of you are pretty good at math and am not concerned about your retirement decision making. Get a second opinion if it would be helpful
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Yeah, my retirement was thinking I should be able to get by without ever earning another dime. However there are a few reasons why I wanted to work part time:
- I enjoy actuarial work, I just wanted to do less of it.
- It certainly canât hurt to pad the retirement nest egg.
- My kids are minimum wage earners and I would like them to inherit a decent amount.
I donât want to say I have been bored in the last five months, but I still want to be productive. If I end up regretting 20 hours of work - and I seriously doubt I will - I only have to live with the decision for six months. I donât have a contract but for them interviewing me and in all likelihood sending a computer next week, I want to give them their moneyâs worth. Hopefully it will be for a few years, or maybe there will be different opportunities. I have the freedom to find out anyway.
Goodbye agriculture, hello excess construction!
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First glance at income taxes for next year: before considering withdrawals from the inherited IRA, about $3200. 
The current plan is to take out $11,000 and use that to pay taxes + taxes on the withdrawal, which should leave us roughly flat.
Finally got my partnerâs IRA set up. Theyâd agreed to open one and Iâd prodded them to make the necessary phone calls to do it on the phone as required by their 401k provider.
They were again not particularly excited to do the financial details and I wanted it done with, and I realized it might be even more pulling teeth and sitting together on speakerphone because weâd need to set up a Backdoor Roth IRA situation. Instead (with permission) I opened them a Vanguard account and made an IRA there, because it can be done entirely online.
Kind of silly the other place makes you call in just to open an IRA!
Name and shame the 401k provider making you dial in to open an IRA
I canât believe that is even an option in this day and age
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Principal. Isnât my provider, just my partnerâs. Their website is generally somewhat bad. For the convenience of keeping most of my money in Vanguard, I didnât mind making them a separate account.
Wow Principal IRA is absolutely cursed
Gotta call to open an account and then annual IRA fee?!?!!
Sometimes I wonder how places like Edward Jones are still in business. But now I think Iâm really starting to understand that there are people out there in the world who truly have no interest in educating themselves to handle their own financial health
Oh wow, I didnât even see the fee. I would have been annoyed and probably rolled it over once I did! Vanguard has just a small paper statement fee that I went e-delivery to waive, plus expense ratios of something like 0.08% (havenât picked out my funds yet as I wait for money to wind through the backdoor IRA process.)
This could also go in annoyed thoughts, but I noticed that Schwab was showing me as overweight in international investments. Upon reviewing the details, they had 3 ETFâs categorized as international that are flat out incorrect: JEPI, SWYGX (Schwab target 2040 index), and USRT (US real estate ETF). I messaged them to let them know, and they said these are multi class investments so they categorize them in the best spot. WTF. These are not remotely close to predominantly international, so I asked them to look again.
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Well, here we are. Itâs gonna be about $22k for the demo and all of the carpentry, probably $1k to $1.5k for electrical, $6k for a roof, and I havenât gotten a stucco quote yet but guessing Iâll spend $3k or so to have the porch done and some other areas touched up. So Iâd be right in the middle of my expected range, except weâve decided to paint the whole house after this is done, so add like $10k. I thought it could be more like $15k or a bit more but my neighbor says they paid less than $10k last year to have theirs painted.
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Wowser. That must be some porch.
Granted, it is the face of your house and greatly affects your curb appeal, but thatâs a big investment.
I once spent a commensurate amount of money on residing my house from aluminum siding to a mix of ~85% cement siding and 15% engineered stone. It was a big upgrade on the curb appeal.
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The decking is 300 sq ft, the foundations sit proud of it, itâs not small. Itâs an old house and Iâm spending a lot to make sure itâs historically accurate. Iâll post pics, but safe to say the porch carries a lot of the mass on the facade of the house and this will be huge for curb appeal.
I also didnât hire the cheapest contractor, tired of dealing with half-ass people. And so far the crew has been phenomenal.
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Put our Ontario farm up for sale this week. I am expecting a price about 250 times what my grandfather paid for it in 1915. Not a great annual rate of appreciation over 110 years but it also generated income every year. The proceeds are sufficient to noticeably reduce my childrenâs mortgages.
I am encouraged to sell because of my advancing age combined with being the last generation that can sell it without incurring Canadian capital gains tax.
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If the people who are buying your farm today hang on to it for a long time, ⌠who knows, maybe in 110 years theyâll get as much as 500% of what your grandparents paid.
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I suspect that in the future taxes for farmland wonât be so advantageous (IHT and CG).
UK has very favourable taxes on farmland as well, but they are now on the chopping block (not sure about Canada but in the UK their status has been abused by investors looking to reduce IHT and CG) as they materially distort prices for farmland.
So you are predicting farmland in 110 years time will only be worth 2% of its current value? Why the pessimism? Obliteration of the human race? I view it as a relatively safe asset class.
The taxation of farmland appreciation in Canada varies depending on the size and ownership. There has long been an exemption from capital gains tax on small farms that stay within the family. This is the case with our farm. There arenât many farms like ours that still benefit from the exemption so not much financial incentive for the government to change it just for farms. However the same exemption applies to other small inter-generational businesses which could be more substantial.
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Itâs a reference to an event at a prior company, right after I left.
The then-COO and then heir-apparent to the CEO got up in front everyone at a town hall and made a semi-rambling speech that was supposed to be inspirational. Near the end she talked about how the company had grown over about 100 years to X in premium, and proudly proclaimed âwho knows, if we can build on their success, maybe in 100 years we can have 2.5X in premium.â
She intended for it to elicit applause. No one applauded. Certain people still refer to it as the 0.9% growth strategy that can help guarantee a company is still around in 100 years.
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Got it!
As we actuaries know, the impact of compound interest is unbelievable over long periods. I estimated the reality of my grandfatherâs property value going up 250-fold over 110 years and it was a pretty modest annual return!
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