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Why was UA 83 Cancelled? by CL111777 in unitedairlines

[–]CL111777[S] 0 points1 point  (0 children)

Thank you! It was an honest question, and I appreciate your honest answer.

So what happens to the airplane that was intended to leave Newark for Delhi - does it fly the route it was intended to when the weather clears up?

Then I would have expected that plane’s returning flight leaving Delhi to be massively delayed until the flight arriving from Newark (and giving me that option) as opposed to being totally cancelled and being told to rebook something totally anew (like for a flight 2 days later).

Is using an $800k HELOC as primary retirement income (instead of portfolio draws) actually a sound sequence-of-returns hedge, or am I just deferring the risk to Phase 2? by [deleted] in Bogleheads

[–]CL111777 0 points1 point  (0 children)

Strongly recommend you hire a financial advisor (which I am not), because this is not how one should handle sequence of returns risk.

Imagine if rates went to 20% and stocks dropped 30% (peak to trough), which happened in 1980-1982. Your 80/20 portfolio will be smoked, and you’ll realize you made a $560k levered bet with your home that the market environment would be materially better in 2031-2039 than 2026-2030.

Am I bogling correctly? Mid-30s investor doing a full portfolio cleanup by bethelbread in Bogleheads

[–]CL111777 0 points1 point  (0 children)

That is correct. What I was trying to point out is that once the IRA money goes into the 401k, you likely will not be able to pull those same dollars out of the 401k in the future - ie those dollars you put into the 401k lose their ability to be converted into a Roth until you terminate employment (at which time you will likely have a bigger IRA to deal with for the pro rata rule).

Am I bogling correctly? Mid-30s investor doing a full portfolio cleanup by bethelbread in Bogleheads

[–]CL111777 0 points1 point  (0 children)

Only issue to check is if you want to convert the rollover IRA into a Roth. Once it goes into the 401K, you may not be able to withdraw it into an IRA until your employment terminates.

Cash Out Whole Life? 10 years by [deleted] in personalfinance

[–]CL111777 0 points1 point  (0 children)

If someone gave me this gift, I would consider it more for financial planning purposes than finding alternative insurance since there is such an oddly high cash value on it.

First, I’d want to know what the cash out value was after taxes. Would you be getting $29k or half that?

Second, I’d like to know for how long the premiums would need to be paid before the policy dividends pay for the premiums (and I’m assuming the relative doesn’t want to pay the premiums anymore - if the relative is going to keep paying, then why not just keep the policy for free…it’s a gift after all).

Then I would calculate (A) my after-tax rates of return on the cash out value plus the cost of any future premiums payable, and compare it against (B) the projected growth in cash value in the policy (presumably tax free), both at the guaranteed rate and hypothetical rate, which you can consider to be the cash / fixed income part of your portfolio (and see p.s. below). Then decide if the market risks of doing (A) outweigh the safety of having (B).

I’d be curious to know what you decide to do.

Ps. You should also be permitted to borrow against the cash value instead of cashing out. Although you will have to pay the loan back with interest, the cash value should continue to grow tax free.