Bogleheads.org

Jack Try this....Google something like "SEC FINRA fines and penalties Merrill Lynch" and see what comes up. Do the same, except insert American Express or LPL. You'll see page after page after page of press releases of the multi-million dollar fines and penalties assessed by the SEC and FI...

My first foray into brokerage services in 1997 was with American Express, who offered 20 free trades/yr (or something like that), which then the average trading cost for the 'discounters' was about $25 as I recall. So I went with AE. What a disaster. Almost every monthly statement had an error on it...

I do this all the time for clients....and from this, a couple of points: 1. Many will not realize they are no longer paying FICA tax, cost sharing medical insurance or contributing to their retirement plan, because these expenses came out before they got their paycheck. IOW, although real, they just...

Hopefully, we will hear from a spokesperson for the [religion removed --admin LadyGeek], who are the experts for a questions like this.

BruceM

Some industry rebuttals....

http://www.plansponsor.com/Documentary_ ... _Fees.aspx

BruceM

This is the OP. Thank you for all discussion you're very welcome....and thank you for taking the time to show your appreciation! I used the last 23 year average annualized return of VBMFX as this is a conservative and long term rate of return available in the marketplace. Most of this period's retu...

Most of what this special covers is already well known by bogelheads and Diehards. Its just good to see it so widely broadcast. I particularly liked the explanation of how our current situation has evolved. In the 80s and 90s, with 12% annualized returns being the 'norm', who cared about this expens...

I have done this calc many times. If I'm reading you correctly, you are doing a simple cash flow differential of owning with monthly all-in expenses vs. monthly renting. Unfortunately, its not nearly that easy. The closing costs and any other one-time capital costs along the way are negative cash fl...

On our cell phones, we've installed the free app 'Call Control', which will automatically reject any calls from known spammers or robocallers and any caller whose caller ID is 'blocked', and gives me the option of immediately directing to my voicemail any calls that are not on my directory. We've on...

I agree with the foregoing comment that if you're not going to take the time to learn the fundamentals....and many intelligent individuals do not.....you should seek out the services of a fee-only registered investment advisor. There are two sources I would search. First, is the Garrett Financial Pl...

Your father is a prime candidate for the likes of "Good Harbor Financial", of which I'm sure there are hundreds if not thousands of such 'advisors' popping up to "serve the needs" of the growing number of baby boomers headed into retirement with 401(k) + IRA balances they are now...

Yes, but it is still a SEP contribution. That is, it must either comply with the rules of the 5305-SEP or the SEP-Plan as written (for a custom SEP). And keep in mind, that you (if self employed) or your employer contribute to your SEP has nothing to do with your ability to contribute to your TIRA a...

A second strategy would be to substitute a portfolio of blue-chip stocks with generous dividends for an equivalent high-quality U.S. bond portfolio. Many excellent U.S. common stocks have dividend yields that compare very favorably with the bonds issued by the same companies—and their dividends are...

Consider that the dividends are always taxed as income. With retired households, qualifying dividends coming out of taxable accounts will usually not be taxed. Dividends (of all types) in tax deferred accounts are not taxed until withdrawn and then as ordinary income. Because income investing is on...

This is not an issue of how big the total earnings are but of how dependable a part (the dividend part) of those earnings is. This is short of a guarantee but it is a lowered risk. This lowered risk might come at the cost of overall returns (or not) but it might be a fair cost for the benefit. That...

Like I said previously Larry, you will understand that income really is income once you get to retirement and have to spend that income. Spending income that doesn't erode your principal in a down market is quite preferable to selling LOW, especially when you have no money to BUY later on. fd Why d...

I'm not FinancialDave, but.... Um... is this really the example you want? The assumptions appear to be: 1. Non-dividend paying portfolio drops 40%, then has 0% total return forever 2. Dividend paying portfolio drops 40%, then INCREASES dividend to ~6.66% to keep paying out a $4,000/year dividend. #1...

To those that are not in retirement, or have not studied retirement withdrawal strategies they may not get it, but there is a big difference between accumulation phase strategies, as compared to withdrawal strategies. During accumulation you should be looking to maximize your total return, but duri...

Sorry to be late to this discussion. I have been an income investor for 13 years. I know this space reasonably well. The income produced by the investments I hold have provided reliable retirement income over this period. My primary objective is reliable income. Capital preservation is not one of my...

We had a local bogelheads quarterly meeting earlier this month, with a newly retired, first time attendee to our meeting, who asked much the same question you are asking. It was suggested to this individual that if he is interested in learning the best approach to managing retirement savings, that h...

The 'employer' participation % is the % of salary the plan requires be contributed to employees accounts. You don't mention if your proprietorship has employees, but whatever the participation % is, you'd have to contribute it to all non-excluded employees. The maximum rate is 25%. However, for the ...

It is also noteworthy that Return of Capital (ROC) from the likes of REITs and MLPs will also not be considered investment income for the purposes of this surtax. However, the income portion of an annuity, it seems, will. BruceM This is true of all income tax. It has nothing to do with the so-calle...

It is also noteworthy that Return of Capital (ROC) from the likes of REITs and MLPs will also not be considered investment income for the purposes of this surtax.

However, the income portion of an annuity, it seems, will.

BruceM

Trudy If her gov employer is like most I've come across, the "401(a)" plan is an employer funded money purchase plan, where the employer will contribute a fixed % of her salary to an account and then give her a few broad investment options, such as a "conservative growth" or an &...

It sounds like the WH has failed. The most common cause of a bottom leak is rust pinholes in the bottom of the tank, particularly if the water has a high mineral content. As to the replacement, the cost will depend on the size (in gallons) the efficiency rating (insulation) and whether it is electri...

I think treating fixed/variable income in retirement as some sort of bond is interesting, but unnecessarily complicates your asset management. Sources of reliable and recurring income, whether from a single premium immediate annuity, a pension, ,Social security, RMDs from an inherited IRA, distribut...

3 questions:
How badly is it leaking?
Where is it leaking?
How old is the WH?

BruceM

Gov 457(b) plans almost never have an employer match, so all contributions would come from her. I generally avoid these, due to their typically high expenses and poor investment choices. As you've described her, her AGI may be low enough to be able to make a deductible traditional IRA contribution, ...

There are a few other pieces of information that would be inportant in your decision process for contributions to the ESPP. Is your employer private or publicly traded? If private, there may be restrictions on the timing of the exercise and immediate stock sale. What are the dates for determining th...

Annually, I'm asked to speak to the local University graduating ROTC Cadets, on matters of personal finance. The simple aphorism I pass along is that "any unsolicited contact you receive for any financial good or service is always answered with the kind word "NO THANK YOU" immediately...

I live in Corvallis, and would be interested in attending a get-together. Cheers, Dave Dave Here is the info on our quarterly get together next week BruceM ---------------------------------------------------------- Hello Diehards, Our next meeting is coming up in two weeks: Tuesday, March 12, 6:30P...

I've gone through this exercise many times with others. From my experience doing this, here's what I'd suggest. Step 1: determine if your lifestyle post retirement will be substantially the same as your pre-retirement lifestyle. For most, the differences will be relatively minor, at least in the fir...

I think the term 'gross income' is what is confusing. The IRS uses the term 'gross income', sometimes also called 'total income', to refer to all forms of income that are subject to federal income tax, and are totaled and reported on line 22 of form 1040 (2012). Line 7 only refers to net income from...

Professor What you ask is relevant to all those of us who recognize the importance of plannning for long term care but will not take the 'rat hole' risk of LTC insurance. Put another way, "all need a long term care plan but not necessarily long term care insurance" (the insurance people ha...

In taxable accounts, long term capital gains and qualifying dividends are now Federally taxed at the 0% rate for those married filing jointly whose taxable income (line 43 of the 2012 form 1040), which will include the capital gains and qualifying dividends, is less than $72,500 for 2013 (the top of...

As a risk to your future savings, the high cost of extended skilled nursing service is a financial risk like any other household risk, and LTCi is one way to manage it. But its not the concept of this form of insurance and when to start it that should concern you about this form of insurance right n...

While part-time I still will be working > 1000 hours/yr so if I understand your answer correctly I'm still be subject to HCE testing and if I exceed the income limit in this year I will have my ability to contribute to the 401k plan reduced next year. Yes. If you exceed the HCE salary threshold thi...

What would be the point of managing the investments? Brian In a private pension plan, each year the employer MUST make a contribution to the plan. Poor investment performace will make the actuarial present value smaller than it should be (underfunded), meaning the employer will have to make a great...

I don't write plans for a living, but I work around them all the time. The following is based on my experience. Specific answers should be obtained from your employer, your HR or retirement plan administrator. 1. Your HCE status is based on the previous year's compensation or the last 2 years for st...

DFA looks like an ideal platform for an honest advisor. The funds aren't available to do-it-yourselfers, and may actually be worth some extra expense. Does this FA use only DFA, or a mix of fund companies? And does he primarily advise in the investing area, or develop full financial plans (insuranc...

No. You must have earned income (income subject to FICA tax) to contribute to both your employer sponsored plan and your IRA. Pension income does not qualify as earned income. See p. 7 of Pub 590 at http://www.irs.gov/pub/irs-pdf/p590.pdf You mention you contribute to a 401(k), so I assume this woul...

I'm just being curious.... why would your family member as the single employer/employee of, I assume, a passthrough LLC, hold a PSP, let alone a PSP funded with a VA? I can think of no reason to do this. The costs of set up, administration and annual reporting on this qualified plan are likely consi...

She works for a county school district, not sure if that's the same status as a non-profit (although obviously both of them aren't looking to make money. Yes, that's an important piece of information, as non-profit 457(b)'s, as I'd mentioned, have some important, and very unfavorable, differences f...

Recently married and trying to see if I should move some of my yearly taxable contributions into tax-deferred accounts. The wife currently contributes roughly 7% of her income to a defined benefit (i.e. pension) plan (my recommendation since I have so much non-pension investments). I assume her emp...

Here’s why it’s so difficult to decide whether to buy long-term care coverage: There are so many unknowns. What’s the long-term care insurance you’re paying for now going to buy you in the future? If you do need it, how long will you need it and at what age? Will the premiums go up so much you’ll b...

I'm 37 and my wife is 31. Is our $10k limit too low? Do you guys have any rules of thumb here? Thanks for your help! :beer It really depends on what you are trying to accomplish. If you are trying to achieve a high credit score, as others have said, I don't think the CC limit is the principal issue...

Do 401(a) money purchase plans and 457 plans get these disclosures. In my readings it has been my understanding that the second part of the new fee-disclosure....that as required by Sec.404(a)(5), does not cover non-participant contribution ERISA plans, such as a profit sharing or money purchase pl...

“Fee disclosure is effective July 1, 2012. Plans then have 60 days from the later of that date or the first day of their plan year following November 1, 2011 to make the disclosures to participants and beneficiaries. For January 1, April 1, and July 1 plans, then, disclosures are due from the plan s...

Would you recommend investing in the 457b? Probably not. That you have Vanguard funds to choose from is good....but the expenses you've quoted, in my experience, are low. The NP 457(b) plans I've seen usually run in the 2.5 to 3% range....at least that's what I've calculated them to be. Remember, t...

Generally, to be a Fiduciary, as defined by ERISA, has to do with the ability to control plan assets. These individuals must be shown and so defined on the plan document. Title is not a factor. From the DOL web site on fiduciary duty: Many of the actions involved in operating a plan make the person ...