Search found 630 matches

by Eric
Wed Jul 29, 2015 10:58 am
Forum: Personal Consumer Issues
Topic: Mandatory vehicle collision avoidance systems are coming
Replies: 42
Views: 2490

Re: Mandatory vehicle collision avoidance systems are coming

in a purely competitive market the car manufacturers will bear the cost I think that's incorrect as a matter of economic theory. The mandate should operate somewhat like a sales tax, which is borne in part by consumers. The amount borne by consumers and the amount borne by producers will depend on ...
by Eric
Thu Jul 23, 2015 9:01 am
Forum: Investing - Theory, News & General
Topic: Cap weight maximum diversification?
Replies: 46
Views: 2361

Re: Cap weight maximum diversification?

Every component of the total market is imperfectly correlated with the whole. You could select anything -- car companies, tech companies, military contractors, utilities, or anything else -- and say, "this moves differently than the market as a whole, so we should add more of it." So I don...
by Eric
Fri Jul 17, 2015 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Trust Services
Replies: 12
Views: 1128

Re: Vanguard disappoints

I have a friend who is trying to move a large amount of money, in several trusts, to Vanguard (under her own management). It has been over 6 months of back-and-forth documents without success. Is your friend attempting to appoint Vanguard as trustee, or is she attempting to open accounts for the tr...
by Eric
Fri Jul 17, 2015 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Trust Services
Replies: 12
Views: 1128

Re: Moving trusts to Vanguard.

I have a friend who is trying to move a large amount of money, in several trusts, to Vanguard (under her own management). It has been over 6 months of back-and-forth documents without success. Is your friend attempting to appoint Vanguard as trustee, or is she attempting to open accounts for the tr...
by Eric
Fri Jul 10, 2015 12:34 pm
Forum: Personal Consumer Issues
Topic: Internet storage and backup for Mac. Dropbox, iCloud, others?
Replies: 54
Views: 3191

Re: Internet storage and backup for Mac. Dropbox, iCloud, others?

Just out of curiosity, do people here actually back up "everything" (including tax/financial/personal documents), or do you only back up the things that you don't mind the world seeing if the data ever gets compromised? I back up everything. Also, how granular are Dropbox/Crashplan, etc? ...
by Eric
Thu Jul 09, 2015 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Amex Premium Car Rental Protection--Worth it?
Replies: 20
Views: 1158

Re: Amex Premium Car Rental Protection--Worth it?

There's also the hassle factor to consider. I know this is an un-Boglehead thing to do, but we have started accepting the overpriced rental-company damage waiver just to avoid getting into an argument later about prior damage vs. new damage. Even if someone else pays to fix the damage, you may still...
by Eric
Wed Jul 08, 2015 8:59 am
Forum: Investing - Theory, News & General
Topic: Bloomberg - "The Hugely Profitable, Wholly Legal Way to Game the Stock Market" (Front running index fund purchases)
Replies: 43
Views: 4464

Re: Bloomberg Article: The Hugely Profitable, Wholly Legal Way to Game the Stock Market

Gus Sauter of Vanguard has acknowledged that the S&P500 index probably suffers from 25 bps of front running Does this suggest an offsetting benefit to the Extended Market Index? If so, since the market cap of the S&P 500 is 4 times the market cap of the Extended Market Index, does that mean...
by Eric
Sun Jul 05, 2015 9:43 am
Forum: Personal Consumer Issues
Topic: Internet storage and backup for Mac. Dropbox, iCloud, others?
Replies: 54
Views: 3191

Re: Internet storage and backup for Mac. Dropbox, iCloud, others?

I had a pretty negative customer service experience with Dropbox when I was a paid customer. I still use their free 2GB service, though. Currently we have this setup: 1. Crashplan for whole-computer backup. I've been using it for a while, alongside Arq, and will probably drop Arq soon. (Arq and its ...
by Eric
Mon Jun 08, 2015 10:38 am
Forum: Investing - Theory, News & General
Topic: Currency hedging equities: Vanguard's Global Min Vol Fund
Replies: 19
Views: 1672

Re: Currency hedging equities: Vanguard's Global Min Vol Fund

With international stocks I just assume that currency movements are unpredictable. That means hedging has an equal chance of reducing volatility as it does of increasing it--it all depends on whether the dollar moves the same direction as the difference between US and international stocks or not. L...
by Eric
Fri Jun 05, 2015 3:48 pm
Forum: Investing - Theory, News & General
Topic: Convertible Bonds and Preferred Stock. Why don't we invest in them?
Replies: 16
Views: 1334

Re: Convertible Bonds and Preferred Stock. Why don't we invest in them?

Preferred stock has favorable tax characteristics for corporate investors. Briefly, a corporate investor may avoid tax on 70% or more of the income received. So for a corporate investor, a preferred stock is similar in some ways to a muni bond. Like a muni bond, it may pay less than would a fully ta...
by Eric
Tue Jun 02, 2015 10:22 pm
Forum: Investing - Theory, News & General
Topic: Four Vanguard International Equity Index changing/broadening indexes
Replies: 77
Views: 8092

Re: Four Vanguard International Equity Index changing/broadening indexes

The logical next step is for Vanguard to broaden the index for the FTSE All-World Ex-US fund, and then merge it into Total International.
by Eric
Thu May 28, 2015 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Citi double cash card vs. Amex Blue Everyday
Replies: 34
Views: 5092

Re: Citi double cash card vs. Amex Blue Everyday

Mudpuppy wrote:There is also a Fidelity cash back VISA card that gets 1.5% on all purchases.

The Fidelity VISA rebates 1.5% on the first $15,000 and 2% on the excess.

So if you charge more than $15,000 per year, it's equivalent to a 2% card with a $75 annual fee. (0.5% times $15,000 equals $75.)
by Eric
Mon May 25, 2015 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: $4500 reasonable for wills for blended family and some trusts?
Replies: 38
Views: 2407

Re: $4500 reasonable for wills for blended family and some trusts?

Eric, do you think that the lawyers in an employer's legal group plan could do a good job? My wife (who is also an estate planning attorney) was approached by one of these plans early in her career. The plan offered to pay her only $75 for each will she prepared on behalf of one of its members. Tha...
by Eric
Mon May 25, 2015 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: $4500 reasonable for wills for blended family and some trusts?
Replies: 38
Views: 2407

Re: $4500 reasonable for wills for blended family and some trusts?

Second marriage, kids from both marriages, estate large enough to require tax planning?$4500 is reasonable.
by Eric
Wed May 13, 2015 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth: Schooling my CPA and getting charged for it!
Replies: 134
Views: 10651

Re: Backdoor Roth: Schooling my CPA and getting charged for it!

If your CPA is part of a larger office, he may not actually handle his own billing. If he entered this item into his timekeeping software and then his office manager pulled it and put together the invoice, they may not have been aware that this was non-charge time. I doubt you'll have a problem get...
by Eric
Wed May 13, 2015 7:45 am
Forum: Personal Finance (Not Investing)
Topic: NYT: 2% rebate credit cards; will they last?
Replies: 30
Views: 3799

Re: NYT: 2% rebate credit cards; will they last?

midareff wrote:The Fido AMEX redeems automatically but FIA has told me the Visa can not be set up that way. Does your automatically pay your Fido cash account?


Yes, my Fido Visa pays automatically to my Fido cash account.
by Eric
Sat May 09, 2015 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: NYT: 2% rebate credit cards; will they last?
Replies: 30
Views: 3799

Re: NYT: 2% rebate credit cards; will they last?

If you're going to consider cards with an annual fee, as the author does, then Fidelity VISA should be in the mix too. If you spend at least $15,000 per year, the rewards structure is equivalent to a 2% card with a $75 annual fee. For those seeking a non-AMEX card @ 2% the Citi MasterCard at 1% + 1...
by Eric
Sat May 09, 2015 8:56 am
Forum: Personal Finance (Not Investing)
Topic: NYT: 2% rebate credit cards; will they last?
Replies: 30
Views: 3799

Re: NYT: 2% rebate credit cards; will they last?

If you're going to consider cards with an annual fee, as the author does, then Fidelity VISA should be in the mix too. If you spend at least $15,000 per year, the rewards structure is equivalent to a 2% card with a $75 annual fee.
by Eric
Tue May 05, 2015 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Replace Fidelity AMEX with Citibank Double Cash
Replies: 14
Views: 2079

Re: Replace Fidelity AMEX with Citibank Double Cash

How easy is it to redeem the cash? I like the automatic redemption feature of the Fidelity card. No request necessary.
by Eric
Thu Apr 09, 2015 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Gift a child, then let them make charitable gift?
Replies: 11
Views: 1187

Re: Gift a child, then let them make charitable gift?

Bear in mind the difference between fixed and marginal reductions in your itemized deductions. To oversimplify a bit, your itemized deductions are reduced by a fixed amount based on your income level. In effect, the government has set a "floor" you must exceed to benefit from your deductio...
by Eric
Sat Mar 07, 2015 9:19 am
Forum: Investing - Theory, News & General
Topic: What's with VG Complaints???
Replies: 42
Views: 3835

Re: What's with VG Complaints???

walletless wrote:I have brokerage accounts at Vanguard, Fidelity, E*Trade, and Tradeking.

Was E*Trade acceptable? I ask because I'm thinking of moving my solo 401(k) there.
by Eric
Fri Feb 27, 2015 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 59
Views: 8172

Re: Have I made a terrible mistake? - whole life

What other info would you say is needed to answer the question about what to do now, other than the tax impact on the scenario where I drop the whole policy, buy term, and invest the rest? I'd want to know more about the internal costs. I'm not an insurance expert, but conceptually I think each pre...
by Eric
Fri Feb 27, 2015 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 59
Views: 8172

Re: Have I made a terrible mistake? - whole life

Just as a counterpoint: Whole life is often a bad deal because of the high up-front costs. But you've already incurred a lot of those costs. The real question isn't "have I made a mistake?" but "what should I do now, ignoring sunk costs?" I don't think we have enough information ...
by Eric
Thu Feb 26, 2015 11:01 am
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 27341

Re: International increase in Target Retirement & LifeStrate

It's a bit closer to a "world neutral" position, then, isn't it? Yes. Makes me wonder if the long-term plan is to replace the individual components with Total World. Vanguard did something similar some years ago when it replaced the region-specific international funds with Total Internati...
by Eric
Fri Feb 13, 2015 9:24 am
Forum: Investing - Theory, News & General
Topic: What is the BH consensus on international bonds?
Replies: 54
Views: 4710

Re: What is the BH consensus on international bonds?

If you are holding bonds for stability, then it doesn't make sense to use securities that are subject to major currency fluctuations. I did consider a fund that held Int. bonds. Glad now that I did not. Wasn't worth the extra currency risk. Vanguard's Total International Bond Index Fund hedges its ...
by Eric
Wed Feb 11, 2015 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Supervisor Role
Replies: 4
Views: 467

Re: Trust Supervisor Role

The more common term is "Trust Protector." That's probably what he means.
by Eric
Tue Feb 03, 2015 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: RMDs at 30 affect AA?
Replies: 2
Views: 401

Re: RMDs at 30 affect AA?

If the RMDs aren't spent, I don't see that it matters. You'll have to spend a portion for taxes but that shouldn't throw off your allocation much.
by Eric
Mon Jan 12, 2015 4:36 pm
Forum: Investing - Theory, News & General
Topic: Is a Sub-4% SWR a Boglehead Quirk?
Replies: 177
Views: 11692

Re: Is a Sub-4% SWR a Boglehead Quirk?

I assume that 3.54% is what comes out when you apply their formula with the "4%" in it to the actual fund history. Still its seems odd because the "past 3 years" doesn't include 2008-2009, and if the past three years wasn't good enough to sustain 4% you wonder what three years c...
by Eric
Sun Jan 11, 2015 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Why not long-term bond fund for the long haul?
Replies: 11
Views: 1572

Re: Why not long-term bond fund for the long haul?

Check out this thread, where we discussed comments by John Norstad and others on this topic. Good discussion.
by Eric
Wed Nov 26, 2014 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Paying my parents a salary not to touch their nest egg
Replies: 50
Views: 4919

Re: Paying my parents a salary not to touch their nest egg

It doesn't require moving money from family member to family member to do that. It just requires communication. It does require moving money, though, to benefit from the parents' lower federal income tax rate. For qualified dividends and capital gains, the OP may pay tax at a 23.8% rate (20% capita...
by Eric
Wed Nov 26, 2014 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Paying my parents a salary not to touch their nest egg
Replies: 50
Views: 4919

misunderstanding (?), cont'd

As a variation on the OP's plan, reducing some of the risks described in my post above, he might make gifts to his parents in trust. The trust may be designed so that its income is taxable to his parents (sometimes called a "678 trust," after the relevant section of the Internal Revenue Co...
by Eric
Wed Nov 26, 2014 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Paying my parents a salary not to touch their nest egg
Replies: 50
Views: 4919

misunderstanding?

I think some posters may be misunderstanding the original poster's proposal. He is not suggesting that his parents give him all their money in exchange for his promise to make annual payments to them. Rather, he wants to give them $40,000 a year so that they can keep their money rather than spend it...
by Eric
Fri Aug 22, 2014 6:17 am
Forum: Personal Consumer Issues
Topic: Quicken 2015 for Mac released
Replies: 29
Views: 5091

Re: Quicken 2015 for Mac released

2) Investment accounts are a wet hot mess, feels like the junky Mint interface, no real ability to easily record transactions etc. I see on Quicken's website that "explicit lot assignments" are not yet supported. Does this mean that Quicken Mac 2015 doesn't support specific share ID? 4) N...
by Eric
Thu Jul 17, 2014 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Weird Estate Tax Result if My Wife and I Die Together
Replies: 12
Views: 1145

Re: Weird Estate Tax Result if My Wife and I Die Together

For those who like citations, see Revenue Ruling 79-303 . Headnote: "A husband and wife who were residents of Texas owned an insurance policy on the life of one of the spouses as community property. Their designation of a child as beneficiary of the policy was revocable prior to death. They die...
by Eric
Thu Jul 17, 2014 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Weird Estate Tax Result if My Wife and I Die Together
Replies: 12
Views: 1145

Re: Weird Estate Tax Result if My Wife and I Die Together

If the policy is community property (very likely) and you and your wife die together, then half the proceeds should count against your estate tax exemption and half against hers. Unless I'm misunderstanding the facts, that avoids the problem you're concerned about. But one other issue you should dis...
by Eric
Thu Jun 12, 2014 11:51 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRAs not exempt from bankruptcy
Replies: 27
Views: 2483

Re: Inherited IRAs not exempt from bankruptcy

We have also been agreeing swimmingly in several technical / law-geek PMs on this subject, from which we have spared our fellow Bogleheads. :D I did want to clarify a prior post of mine here, though, as I expressed something in an ambiguous way. There is a controversy in many states as to whether a ...
by Eric
Thu Jun 12, 2014 10:19 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRAs not exempt from bankruptcy
Replies: 27
Views: 2483

Re: Inherited IRAs not exempt from bankruptcy

You don't need any other information to "interpret the Court's decision." The Court held that Inherited IRAs may not be excluded from the bankruptcy estate under 522(b)(3)(C) (and the identical 522(d)(12). That's all. If you find cases holding that Inherited IRAs may be excluded under oth...
by Eric
Thu Jun 12, 2014 9:35 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRAs not exempt from bankruptcy
Replies: 27
Views: 2483

Re: Inherited IRAs not exempt from bankruptcy

See this paragraph from the cert petition: In enacting the "retirement funds" exemption, Congress sought to "expand the protection for tax-favored retirement plans or arrangements that may not already be protected under * * * state or federal law." In order to ensure that the exe...
by Eric
Thu Jun 12, 2014 9:20 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRAs not exempt from bankruptcy
Replies: 27
Views: 2483

Re: Inherited IRAs not exempt from bankruptcy

The question presented in the cert petition (page 2) only dealt with 522(b)(3)(C). I assume petitioner's counsel didn't think (A) applied. In which case we come full circle, and I provisionally retract my concession. ;-) Let's go back to the beginning. I said earlier that under (b)(1), you can pick...
by Eric
Thu Jun 12, 2014 8:20 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRAs not exempt from bankruptcy
Replies: 27
Views: 2483

Re: Inherited IRAs not exempt from bankruptcy

But "retirement funds" isn't the only operative provision, so I'm still puzzled by this result. The case deals with 11 U.S.C. § 522(b) . Subsection (b)(1) says that a debtor can protect property listed in subsection (b)(2) (the federal bankruptcy exemptions) or (b)(3) (the state exemptions...
by Eric
Thu Jun 12, 2014 7:46 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRAs not exempt from bankruptcy
Replies: 27
Views: 2483

Re: Inherited IRAs not exempt from bankruptcy

No, that's incorrect. See page 2, footnote 1, of the opinion. I'll cop to being partially incorrect. ;-) You do in fact get to choose between federal and state exemptions, as I stated. However, the Court ruled against the debtors even though they chose the state exemption. That's a surprising resul...
by Eric
Thu Jun 12, 2014 5:46 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRAs not exempt from bankruptcy
Replies: 27
Views: 2483

Re: Inherited IRAs not exempt from bankruptcy

the amount in the inherited IRA was ~$300,000. How much was spent in legal fees by the petitioners (Clark and his wife) to avoid having that amount included in the bankruptcy estate? Should the debtors care? If they lose, they're spending the creditors' money. If they win, it's still better to keep...
by Eric
Thu Jun 12, 2014 5:40 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRAs not exempt from bankruptcy
Replies: 27
Views: 2483

Re: Inherited IRAs not exempt from bankruptcy

Generally, a bankrupt debtor may elect one of two exemption schemes. With some exceptions, she may claim either the exemptions allowed by federal law or the exemptions allowed by state law. I haven't reviewed the opinion yet, but I assume it affects only those debtors who are claiming the federal ex...
by Eric
Mon Jun 02, 2014 6:46 am
Forum: Investing - Theory, News & General
Topic: Why Avoid Long-Term Bonds?
Replies: 67
Views: 7194

Re: Why Avoid Long-Term Bonds?

grok87 wrote:extra interest rate risk


Depends on your time horizon. If by risk you mean "standard deviation of one-year returns," then yes. But if I'm investing for a 20-year term I'm more concerned with the standard deviation of 20-year returns.
by Eric
Fri May 30, 2014 3:18 pm
Forum: Investing - Theory, News & General
Topic: Why Avoid Long-Term Bonds?
Replies: 67
Views: 7194

Re: Why Avoid Long-Term Bonds?

First, I think myself and the previous posters should by now be immunized from the 'aren't you betting?' fighting words ( :happy ) because we've clearly stated: yes. 'Never bet' is a nice clear concept, but not realistic IMO. It's a matter of degree. No fighting words intended. :wink: As I mentione...
by Eric
Fri May 30, 2014 1:00 pm
Forum: Investing - Theory, News & General
Topic: Why Avoid Long-Term Bonds?
Replies: 67
Views: 7194

Re: Why Avoid Long-Term Bonds?

it seems to me market timing the real yield of TIPS might be considered differently than say timing the stock market or nominal bond yields. Especially if one were to say they'd rather (for say a 30 yr investment horizon) buy 5yr TIP's at negative real yield now and hope to once again achieve 'norm...
by Eric
Tue May 27, 2014 5:43 pm
Forum: Investing - Theory, News & General
Topic: Why Avoid Long-Term Bonds?
Replies: 67
Views: 7194

Re: Why Avoid Long-Term Bonds?

I like the idea of buying 30 year TIPs to match retirement liabilities but I'm not willing to buy them at 0% real yield or negative real yield. I don't necessarily disagree, but this is market-timing. I don't mean that as a criticism, just an observation. It's like saying you're not willing to buy ...
by Eric
Tue May 27, 2014 4:40 pm
Forum: Investing - Theory, News & General
Topic: Why Avoid Long-Term Bonds?
Replies: 67
Views: 7194

Re: Why Avoid Long-Term Bonds?

One significant difference is that insurance companies and pension funds managers don't care much if the dollars they pay have lost much of their value due to inflation since their contracts usually just have to pay out dollars that are not inflation adjusted. For individuals, especially in the acc...
by Eric
Tue May 27, 2014 10:05 am
Forum: Investing - Theory, News & General
Topic: Why Avoid Long-Term Bonds?
Replies: 67
Views: 7194

Re: Why Avoid Long-Term Bonds?

For an interesting counterpoint, see these posts by John Norstad. Sample passages: we're investing for our retirement. This money we're saving isn't going to be spent tomorrow or next year or even 5 or 10 years from now - it's going to spent 10-70 years from now! . . . In this respect we are quite s...
by Eric
Wed Apr 23, 2014 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Need signature guarantee in Japan
Replies: 24
Views: 1945

Re: Need signature guarantee in Japan

Vanguard requires them if you change the form of ownership on a transfer from another broker or are putting your shares into trust. I can't speak to your specific examples, but in some cases Vanguard will waive the signature guarantee requirement if you use Vanguard's voice verification system. See...

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