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Re: Help with letter from IRS about 2013 529 distribution

So either way, if their are large gains, they will go after a kid who may not even file returns ? The short answer is that they could. But "go after" is strong. A more appropriate way of putting it is that they may "strongly assume there is unreported income". But based on the a...
by Leesbro63
Sat Apr 25, 2015 12:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with letter from IRS about 2013 529 distribution
Replies: 28
Views: 2139

Re: Help with letter from IRS about 2013 529 distribution

I always figured this problem was caused by a name mismatch in the IRS system. The 529 plan issued the 1099-Q to the person to whom they sent the check. So, if I had them send me the money for DS's expense, the 1099-Q would have had my name/SSN on it. Our work around was to float DS a loan for expe...
by Leesbro63
Sat Apr 25, 2015 6:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with letter from IRS about 2013 529 distribution
Replies: 28
Views: 2139

Re: What is a Boglehead?

Looks for value
by Leesbro63
Sat Apr 25, 2015 6:38 am
 
Forum: Investing - Theory, News & General
Topic: What is a Boglehead?
Replies: 42
Views: 1771

Re: Help with letter from IRS about 2013 529 distribution

We got around this by having the check from the 529 Plan made out directly to the university our child was attending and then sending it to the university. The IRS never asked for any proof of what the payment was for when we did that. I have a good friend who does this. In this case the 529 plan s...
by Leesbro63
Fri Apr 24, 2015 8:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with letter from IRS about 2013 529 distribution
Replies: 28
Views: 2139

Re: Help with letter from IRS about 2013 529 distribution

You are correct. The IRS doesn't have a place to "reconcile" qualified college expenses with the Form 1099-Q showing how much was withdrawn from the 529 account. This is the essence of this longstanding problem. Their computers just assume the withdrawal was NOT for qualified expenses and ...
by Leesbro63
Fri Apr 24, 2015 4:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with letter from IRS about 2013 529 distribution
Replies: 28
Views: 2139

Re: Peter Bernstein's 60/40 solution

2008 also spooked Bill Bengen, the "father of the four percent rule". His rule is based on staying the course...but even he could not: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avlBJwbK1ybI&refer=home "Bengen also is keeping his clients out of equities. Normally, ...
by Leesbro63
Fri Apr 24, 2015 3:24 pm
 
Forum: Investing - Theory, News & General
Topic: Peter Bernstein's 60/40 solution
Replies: 25
Views: 2789

Re: Car Dealership Credit Report

In defense of the car dealers taking a five figure personal check from someone that just walked on your car lot does expose them to a lot of risk so I can understand why they would want to check out someone that was buying a car. This is especially true since the buyer likely wants to leave with th...
by Leesbro63
Fri Apr 24, 2015 3:21 pm
 
Forum: Personal Consumer Issues
Topic: Car Dealership Credit Report
Replies: 28
Views: 1563

Re: Stepped-up basis on TOD brokerage account

That confirms what I guessed.
by Leesbro63
Fri Apr 24, 2015 10:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Stepped-up basis on TOD brokerage account
Replies: 16
Views: 713

Re: Car Dealership Credit Report

I think sometimes dealers run credit checks on people who they suspect might not be able to qualify for a car loan. Why bother selling the car if the deal blows up at the end...that's their thinking.
by Leesbro63
Fri Apr 24, 2015 8:55 am
 
Forum: Personal Consumer Issues
Topic: Car Dealership Credit Report
Replies: 28
Views: 1563

Re: Stepped-up basis on TOD brokerage account

As talzara points out, it makes a huge difference whether this was a joint or a TOD account. Gill I suspect it's both...a joint account that becomes the surviving spouse's account at the death of the first spouse then later, upon death of the second spouse, passes to the beneficiary without probate...
by Leesbro63
Fri Apr 24, 2015 6:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Stepped-up basis on TOD brokerage account
Replies: 16
Views: 713

Re: Help with letter from IRS about 2013 529 distribution

Congrats on your "get out of jail free" card. Yes, this will probably happen each year. I've been wondering why they can't fix this since 2008...it's 2015 and you're still asking too. But now you know how to handle it. :D
by Leesbro63
Thu Apr 23, 2015 8:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with letter from IRS about 2013 529 distribution
Replies: 28
Views: 2139

Re: Multiple Asset Allocations?

What if a 30 year old received a large inheritance. To me, it would make sense to split the money and use two different AA. One using a bond ladder/dividend equity to replace income from work until age 60. The other with primarily index stocks to fuel long term growth, which they could then tap aft...
by Leesbro63
Wed Apr 22, 2015 7:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Multiple Asset Allocations?
Replies: 17
Views: 1533

Re: Warren Buffett on equties, treasuries, and "risk"

"Dr. Bernstein says medium term bonds are too risky. That you want your safe money to be safe. And he's agreed that for large taxable accounts, taxflation makes TIPS somewhat unsuitable." As long as your holding period for the medium term bonds is longer than their average duration this i...
by Leesbro63
Wed Apr 22, 2015 5:10 pm
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett on equties, treasuries, and "risk"
Replies: 46
Views: 4143

Re: Warren Buffett on equties, treasuries, and "risk"

When you have far more money than you could ever spend in multiple lifetimes it doesn't matter if the portfolio is 100% MMF or 100% EM small cap equities. For the rest of us it's a balance between deep risk (inflation) and shallow risk (volatility). The first is solved by holding equities. The seco...
by Leesbro63
Wed Apr 22, 2015 5:54 am
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett on equties, treasuries, and "risk"
Replies: 46
Views: 4143

Re: Warren Buffett on equties, treasuries, and "risk"

If you have enough money, you could also invest in less liquid things like timber, private equity, etc. For the purposes of "risk" these should count as stocks. Not perfectly correlated with TSM, but volatile. I don't endorse timber or private equity, although I don't really know much abo...
by Leesbro63
Mon Apr 20, 2015 4:38 pm
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett on equties, treasuries, and "risk"
Replies: 46
Views: 4143

Re: Warren Buffett on equties, treasuries, and "risk"

And I'm 55/45 at age 55 and also concerned that reducing equities may not reduce long term risk overall due to the current risks of fixed income
by Leesbro63
Mon Apr 20, 2015 4:09 pm
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett on equties, treasuries, and "risk"
Replies: 46
Views: 4143

Re: Bernstein: "If you've won the game, stop playing."

itstoomuch wrote: I have no qualms in attempting to replicate the DB plan of public employees in a privately purchased GWIB annuity that could break the annuity company in the longterm.


What does this mean?
by Leesbro63
Mon Apr 20, 2015 2:32 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14726

Re: Bernstein: "If you've won the game, stop playing."

When Bill Bernstein talks about investing in bonds he probably means short-term US Treasuries. Are those bonds risky? They were for my grandmother who lived as a widow (savings stopped when gramps died in 1970) from 1970-1991 and would only use short term "safe" fixed income investments. ...
by Leesbro63
Mon Apr 20, 2015 2:30 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14726

Re: Bernstein: "If you've won the game, stop playing."

When Bill Bernstein talks about investing in bonds he probably means short-term US Treasuries. Are those bonds risky? They were for my grandmother who lived as a widow (savings stopped when gramps died in 1970) from 1970-1991 and would only use short term "safe" fixed income investments. ...
by Leesbro63
Mon Apr 20, 2015 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14726

Re: Bernstein: "If you've won the game, stop playing."

If the EE bond is held for exactly 20 years, the YTM at that point is an annual return of 3.53%. Do you believe that the rate of inflation will exceed 3.53% is the right question. I'm not sure that this is the right question alone. The other important factor is what are the consequences if it excee...
by Leesbro63
Mon Apr 20, 2015 12:02 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14726

Re: Bernstein: "If you've won the game, stop playing."

William Bernstein advises retirees and near-retirees to avoid investing in risky assets such as stocks, at least with money needed to provide an adequate income stream. Is anybody acting on this advice and what is your strategy? I am not acting on his advice. I view bonds as just as risky to my ret...
by Leesbro63
Mon Apr 20, 2015 11:57 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14726

Re: John Bogle vs Jim Grant Debate

Thanks for posting this. Interesting. I started reading Grant years before I learned about Bogle. IMHO I find Grant to be somewhat of an odd-ball, albeit brilliant. And generally a permabear.
by Leesbro63
Fri Apr 17, 2015 10:00 am
 
Forum: Investing - Theory, News & General
Topic: John Bogle vs Jim Grant Debate
Replies: 14
Views: 2106

Re: Is it ok to NOT have significant taxable investments?

One problem related to all this is that for many, tax-sheltered space is limited. Only so many dollars per year can be invested in sheltered accounts. So this becomes an excuse to spend the difference. For many, the amounts able to be saved in tax-sheltered is the right amount. But for many others, ...
by Leesbro63
Thu Apr 16, 2015 6:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Is it ok to NOT have significant taxable investments?
Replies: 48
Views: 4661

Re: Is it ok to NOT have significant taxable investments?

In my opinion, the ONLY "advantage" that taxable accounts have over tax-advantaged accounts is that there is no early withdrawl fee if you withdraw before age 59 1/2. If you have a robust emergency fund and are adequately insured this should never happen anyway. Well, another advantage is...
by Leesbro63
Wed Apr 15, 2015 3:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is it ok to NOT have significant taxable investments?
Replies: 48
Views: 4661

EmergDoc on Radio Show Podcast

[Thread merged into here, see below. --admin LadyGeek] I haven't listened yet, but I see that EmergDoc is the guest on Jim Lange's podcast 143, here: http://www.paytaxeslater.com/radioshow.php I've heard Larry Swedroe, Bruce Steiner, Bill Bernstein and even Jack Bogle as guests. Lange is not quite ...
by Leesbro63
Wed Apr 15, 2015 2:57 pm
 
Forum: Investing - Theory, News & General
Topic: EmergDoc on the James Lange Program
Replies: 17
Views: 3352

Re: Is it ok to NOT have significant taxable investments?

A local (Pittsburgh area) financial guy has a radio show that I listen to. James Lange...some Bogleheads are familiar with his podcasts here: http://www.paytaxeslater.com/radioshow.php He's somewhat of an authority on IRA planning. A few of the professionals who post here have been guests on his sho...
by Leesbro63
Wed Apr 15, 2015 2:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is it ok to NOT have significant taxable investments?
Replies: 48
Views: 4661

Re: Cost of College & Weighing the Merits of Top Schools

If one had a total net worth of $250K with a child going to college, they would have that net worth in a home, a 401(k), and retirement plans and not in a 529 plan. For someone with $2MM to $3MM in a portfolio of index funds, their portfolio would gain the full cost of a 4-year degree at these expe...
by Leesbro63
Tue Apr 14, 2015 12:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Cost of College & Weighing the Merits of Top Schools

KlangFool wrote:
There are more than one way to develop contact.

KlangFool


Absolutely! But still not the point for those who can get into HYP
by Leesbro63
Tue Apr 14, 2015 8:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Cost of College & Weighing the Merits of Top Schools

I know two people who turned down Stanford and a few Ivies when they were admitted to ASU's Barrett Honors College. Both of them are highly successful already in their mid-20's. ASU is not in any way highly regarded, but Barrett most definitely is. That's not really the point. It's not a matter of ...
by Leesbro63
Tue Apr 14, 2015 8:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Cost of College & Weighing the Merits of Top Schools

But to tell your kid don't go to HYP (or even those lesser internationally known schools) I don't think so. Emotions enter into the decision. blevine, To each its own. You would like to believe that all the best and brightest students want to go to those schools. But, why should that be true?? Ther...
by Leesbro63
Tue Apr 14, 2015 6:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Prenup

This doesn't really answer to the "prenup or not" question. But one factor in a first marriage is that kids of that marriage generally are of concern to both parents. Versus a second marriage with yours, mine and maybe ours kids
by Leesbro63
Mon Apr 13, 2015 12:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Prenup
Replies: 80
Views: 5022

Re: The $1 Million Goal: Source of Motivation or Discouragem

I think there is way too much emphasis on income on this thread. It's not how much you make, it's how much you keep. A third leg is how much you give. Giving to a good cause may make your bank account a little smaller, but it can literally mean the difference between life and death to someone, and ...
by Leesbro63
Mon Apr 13, 2015 11:33 am
 
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 15853

Re: Long Term Tax Efficient Investing - Is it Better to Shel

I have the "old Boglehead thinking" setup of taxable bonds filling up my available tax sheltered space and equities/muni bonds in taxable. Based on tax rates at the time I set this up, it was the right thing to do. But if I were starting today, or could redo it without a big capgains tax h...
by Leesbro63
Sun Apr 12, 2015 6:57 pm
 
Forum: Investing - Theory, News & General
Topic: Long Term Tax Efficient Investing - Is it Better to Shelter
Replies: 16
Views: 2392

Re: Barrons Article on LTC Insurance

It's also not just a matter of net worth. The amount of guaranteed income is also a factor. If your income is high enough, you do not need as much in assets to self insure LTC. Consider someone with a 100K pension. That would go a long way towards LTC. Although a $100K pension has a high present va...
by Leesbro63
Sun Apr 12, 2015 5:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Barrons Article on LTC Insurance
Replies: 12
Views: 1074

Re: The $1 Million Goal: Source of Motivation or Discouragem

I remember stories of my grandfather passing on condo's in Newport Beach,CA for $50k. Those are now multi-million properties. To suggest that $127k was not a lot of $$ in the 60's, and that for that reason $1,000,000 is not a lot today, is probably the most out-of-touch comment from this thread! :)...
by Leesbro63
Sun Apr 12, 2015 3:30 pm
 
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 15853

Re: Cost of College & Weighing the Merits of Top Schools

livesoft wrote: Graduates from outstanding schools in lower cost of living areas usually stick around and get lower salary in those areas.


Yes and might actually have a higher standard of living, due to lower costs and lower taxes.
by Leesbro63
Sun Apr 12, 2015 11:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Barrons Article on LTC Insurance

You might want to quote relevant parts of the article since one needs to subscribe to read the article. Wow. That's odd. Yes, the link I posted does require a subscription (which I do not have). But when I Googled "Barrons Long Term Care Insurance Who Should Buy It", I was able to get go ...
by Leesbro63
Sun Apr 12, 2015 10:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Barrons Article on LTC Insurance
Replies: 12
Views: 1074

Barrons Article on LTC Insurance

I thought this new Barron's article would further the actionable discussion about LTC insurance that's currently under discussion on other threads:

http://online.barrons.com/articles/long ... 1428722896
by Leesbro63
Sun Apr 12, 2015 10:32 am
 
Forum: Personal Finance (Not Investing)
Topic: Barrons Article on LTC Insurance
Replies: 12
Views: 1074

Re: The $1 Million Goal: Source of Motivation or Discouragem

I'll bet the number is significantly smaller if you exclude the personal residence or other consumable use assets. Yeah, homes can be converted to cash but someone with a $1M portfolio is generally in a better financial position than someone with a $300,000 house and a $700,000 portfolio.
by Leesbro63
Sun Apr 12, 2015 9:26 am
 
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 15853

Re: The $1 Million Goal: Source of Motivation or Discouragem

I forget the actual parameters, but THE MILLIONAIRE NEXT DOOR had a good scale relating savings to income and age.
by Leesbro63
Sun Apr 12, 2015 6:28 am
 
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 15853

Re: Prenup

There's a lot of bad legal advice in here even from the people who are suggesting that the bad legal advice is bad. Prenups are challenged all the time. They are also overturned all the time. Do not assume a prenup is a closed end deal, done once and then set in stone forever. This is especially tr...
by Leesbro63
Sat Apr 11, 2015 11:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Prenup
Replies: 80
Views: 5022

Re: Prenup

There's a lot of bad legal advice in here even from the people who are suggesting that the bad legal advice is bad. Prenups are challenged all the time. They are also overturned all the time. Do not assume a prenup is a closed end deal, done once and then set in stone forever. This is especially tr...
by Leesbro63
Sat Apr 11, 2015 10:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Prenup
Replies: 80
Views: 5022

Allan Roth Recommends LTC Insurance (Sort of)

This article by "our own" Allan Roth seems to be at odds with the consensus of prior Boglehead threads that LTC insurance, purchased today. is not a good value/too risky. He concludes, however, that it's not for him...so it's not really clear what to do. EDIT: The comments about this artic...
by Leesbro63
Sat Apr 11, 2015 10:01 am
 
Forum: Personal Consumer Issues
Topic: Allan Roth Recommends LTC Insurance (Sort of)
Replies: 3
Views: 481

Re: Cost of College & Weighing the Merits of Top Schools

I don't buy the premise that a great, but not "stellar" student will have a tougher time at Elite U versus a top State U honors program. Those honors schools have some brilliant superstars and the competition, once you are in, can be just as tough as at Elite
by Leesbro63
Thu Apr 09, 2015 11:03 am
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Cost of College & Weighing the Merits of Top Schools

The problem with letting an 18 year old make such huge decisions is that you are letting an 18 year old make huge decisions.
by Leesbro63
Wed Apr 08, 2015 1:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Nailed it! $223,199/yr: magic# for making it in SF Bay A

What would a 50yr old techie guy do in Kansas, Oklahoma or Nebraska ? I confess I don't have the foggiest clue. Never been to those places. 7 years short of your hypothetical techie, and in Pennsylvania instead of Kansas, Oklahoma or Nebraska, but I'll swing the bat nonetheless... I have 21 years e...
by Leesbro63
Tue Apr 07, 2015 7:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Nailed it! $223,199/yr: magic# for making it in SF Bay Area
Replies: 117
Views: 11024

Re: Cost of College & Weighing the Merits of Top Schools

FrogPrince wrote:Here's data showing your instinct is right on the money.

http://www.todayscience.org/IER/article/ier.v2i2p01.pdf



Thanks for that somewhat confirming report, FrogPrince.
by Leesbro63
Tue Apr 07, 2015 4:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Cost of College & Weighing the Merits of Top Schools

There's something else going on here that I cannot prove. And it's slightly off topic but directly related: I'm convinced that schools "profile" the applicants to be sure they get enough "full sticker" paying kids. Yeah, they claim to be "need blind" but if both parents...
by Leesbro63
Tue Apr 07, 2015 3:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Cost of College & Weighing the Merits of Top Schools

RadAudit wrote:
WalterMitty wrote:Is it worth going to a top tier school and paying $240,000 to $280,000 when all is said and done


No.



+1. I did it and think it was a better value than state schools at half the price. But if I or my kids had to go into substantial debt to do it then I would recommend against it.
by Leesbro63
Tue Apr 07, 2015 11:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 16711

Re: Mohamed El-Erian Has Most of His Money in Cash

I don't think he has any better shot of successfully timing the market than anyone else. However, I think the point of the OP is that his credentials make him an authority that is more reliable than your average Boglehead. This is certainly true. So if you are inclined to think he is correct, the o...
by Leesbro63
Mon Apr 06, 2015 1:44 pm
 
Forum: Investing - Theory, News & General
Topic: Mohamed El-Erian Has Most of His Money in Cash
Replies: 69
Views: 7616
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