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by MN Finance
Fri May 15, 2015 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: IDGT and death of grantor = stepped up basis?
Replies: 2
Views: 146

Re: IDGT and death of grantor = stepped up basis?

I don't know, but Google appears to know.

Whoever set it up clearly has an understanding of boththe estate tax and income tax tradeoffs, so that's clearly the place to start.
by MN Finance
Tue May 12, 2015 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice: Especially with TIAA Real Estate
Replies: 21
Views: 933

Re: Portfolio Advice: Especially with TIAA Real Estate

We allocate a defined position to real estate separate from stocks or bonds, but effectively weight it as a blend. For example a 50/50 portfolio would actually be 45/7 with the 7 being real estate (either 7 TIAA or 5/2 TIAA/REITS.) You may not want the monitor it that tightly yourself. If TIAA was n...
by MN Finance
Tue May 05, 2015 6:29 pm
Forum: Investing - Theory, News & General
Topic: best financial gift for very young child
Replies: 19
Views: 1638

Re: best financial gift for very young child

If you're trying to invest for them and give them future financial stability (you said use in 20 or 30 years) then you just open up an account in your name. It's clean and easy and you can later gift it to them when they understand it If you want to teach them about money (entirely different) then o...
by MN Finance
Thu Apr 30, 2015 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: SEPP 72(t) aggregate or separate IRAs?
Replies: 8
Views: 727

Re: Early withdrawls if still self employed

rjsob58 wrote:And that applies if I continue to earn income (self employed/1099)?

Yes, you separated from service. You just happen to consult for the same company. If you came back as W2, I don't know enough detail on the law to weigh in, but I would assume that's cloudy.
by MN Finance
Wed Apr 29, 2015 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: DFA as a new 401k option - Poll
Replies: 12
Views: 919

Re: DFA as a new 401k option - Poll

We use DFA. In international and EM we choose them in small/value. In other spaces we use VG and Schwab. If you don't slice and dice, though, it doesn't make sense to add complication simply because you now have new options.
by MN Finance
Tue Apr 28, 2015 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: SEPP 72(t) aggregate or separate IRAs?
Replies: 8
Views: 727

Re: Early withdrawls if still self employed

If you separate from service in the year you attain 55 or later, then you can take withdrawals from that employers retirement account as though you are 59.5. Thats probably the simplest. Otherwise, yes you can 72t from just one small IRA
by MN Finance
Tue Apr 28, 2015 6:50 am
Forum: Investing - Help with Personal Investments
Topic: Hourly Financial Advisor -- Yeah, right!
Replies: 14
Views: 2262

Re: Hourly Financial Advisor -- Yeah, right!

I wouldn't agree to a 2 or 3 hour limit. It sounds like he did exactly the right thing. He set as phone call to determine the scope of work so as not to waste either of your time. In that call determined he needed to run a more typical engagement than 2 hours. You aren't willing topay it, so everyon...
by MN Finance
Mon Apr 27, 2015 6:03 pm
Forum: Investing - Theory, News & General
Topic: Spoke with a Schwab Representative...
Replies: 9
Views: 1844

Re: Spoke with a Schwab Representative...

This is vanguards decision, which share classes they allow to be sold on other platforms. It's obviously common that fund companies only allow limited access to some funds. Fwiw, if using schwab you might as well use their funds which are cheaper in some cases.
by MN Finance
Mon Apr 27, 2015 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: How to know what fees financial advisor is charging?
Replies: 12
Views: 780

Re: How to know what fees financial advisor is charging?

Posting the name of the company and funds she holds would make it pretty obvious, or you can just ask. Either is an option, but both seem pointless if you're leaving.
by MN Finance
Mon Apr 27, 2015 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving our financial advisor over a period of months
Replies: 33
Views: 2554

Re: Leaving our financial advisor over a period of months

Once you terminate your relationship the accounts now become self directed, as such retaining them in the current arrangement is no more beneficial than immediately moving them because the advisor cannot legally advise you further.
by MN Finance
Sun Apr 26, 2015 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: RMD or QCD - Which has to come out first?
Replies: 7
Views: 533

Re: RMD or QCD - Which has to come out first?

There's no reason you can't just initiate the QCD now. If the provision is renewed, then it's a QCD. If it's not, then this just becomes a taxable distribution plus charitable contribution.
by MN Finance
Fri Apr 24, 2015 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Low Cost Adviser with Vanguard as Custodian?
Replies: 9
Views: 832

Re: Low Cost Adviser with Vanguard as Custodian?

MN Finance, Thanks for the comments. However, all that is taken care of. She wishes to focus on cost as well, is very on board with the way we manage our finances, and simply wants a few low cost advisers to consider as OPTIONS, not as something she is pressured into. If I leave her with no choices...
by MN Finance
Fri Apr 24, 2015 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: How should anticipated inheritance affect asset allocation?
Replies: 17
Views: 1313

Re: How should anticipated inheritance affect asset allocati

There's an important point being missed here. In some cases (probably this being one of them), not factoring it into the equation may be just as big of a mistake as factoring it in. In the same way, a 40 year old ignoring Soc Sec entirely, may make ill advised decisions (taking too much risk for exa...
by MN Finance
Fri Apr 24, 2015 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Low Cost Adviser with Vanguard as Custodian?
Replies: 9
Views: 832

Re: Low Cost Adviser with Vanguard as Custodian?

While your intention is obviously good, IMO your efforts actually may be misguided. There is some probability that your efforts actually increase stress at an already stressful time (ie, there will be pressure to accommodate your wishes even if that result is undesirable.) When choosing a financial ...
by MN Finance
Fri Apr 24, 2015 12:54 pm
Forum: Investing - Theory, News & General
Topic: Companies and index funds
Replies: 5
Views: 342

Re: Companies and index funds

Companies buy and own stock all the time, but taking a bunch of cash and buying an index fund is a ridiculous idea (not that you having the idea is ridiculous, but them actually doing it would be ridiculous.) If you take time to think about it, you'll be able to come up with several reasons. The mos...
by MN Finance
Thu Apr 23, 2015 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Tax treatment of irrevocable trust transfers - Question
Replies: 4
Views: 397

Re: Tax treatment of irrevocable trust transfers - Question

Who is the beneficiary of the trust? What did the attorney say?
by MN Finance
Sat Apr 18, 2015 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: long term capital gain tax vs. roth conversions
Replies: 41
Views: 2421

Re: long term capital gain tax vs. roth conversions

From the information provided, nailing the tax issue is second to moving toward a more controllable portfolio. If you have significant tracking error for a few years that could dwarf any theoretical tax inefficiency in implementing the wrong plan. I'm not saying to realize more gains than you should...
by MN Finance
Sat Apr 18, 2015 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Primary Residence Capital Gains Exclusion
Replies: 1
Views: 248

Re: Primary Residence Capital Gains Exclusion

It's pretty clear if you read the IRS pub (523 I think). Only one of you needs to own it to qualify for the ownership test. You have to file a joint tax return. You each need to satisfy the occupancy test separately.
by MN Finance
Sat Apr 11, 2015 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Gift limit and Charitable Donations
Replies: 31
Views: 1254

Re: Gift limit and Charitable Donations

For monetary donations, they can deduct up to 50% of their AGI. If the donations are over 50%, they can carry it over to subsequent years. From a purely tax perspective, it makes sense for them to take the deduction due to their high bracket. This is only from a pure tax perspective. How wonderful ...
by MN Finance
Wed Apr 08, 2015 1:00 pm
Forum: Personal Consumer Issues
Topic: Vehicle Suggestions with 3 Kids
Replies: 41
Views: 2553

Re: Vehicle Suggestions with 3 Kids

When we had our 3rd we ended up buying a wagon (several good choices) which was fine with 3 car seats and still reasonably enjoyable to drive. We didn't want a minivan or large suv. The day after we found out a 4th was on the way we bought a new Sienna which has been great, though I personally don't...
by MN Finance
Wed Apr 08, 2015 8:30 am
Forum: Personal Finance (Not Investing)
Topic: Fear of reverse churning leads to unnecessary activity?
Replies: 1
Views: 273

Re: Fear of reverse churning leads to unnecessary activity?

Yes, this is real. In the broker world a wrap fee is sometimes an alternative to transaction commissions, as such if the client would've been better off in the transactional structure then there's real risk they're charging to much, hence the need for transactions. In the RIA world it's potentially ...
by MN Finance
Tue Apr 07, 2015 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Status of Inherited, Cashed Out Traditional IRA
Replies: 9
Views: 680

Re: Tax Status of Inherited, Cashed Out Traditional IRA

If I were the executor and there were no listed beneficiaries and the account had to go through probate and there were 7 eventual beneficiaries, then depending on account size I would have done the same thing, cashed it out. Dealing with this is no small task and time involved potentially significant.
by MN Finance
Mon Apr 06, 2015 10:53 pm
Forum: Investing - Theory, News & General
Topic: Sell in May and go away
Replies: 15
Views: 3489

Re: Sell in May and go away

Correlation vs causation. There's also a pattern whereby you would've come out ahead by selling when the AFC wins the super bowl and buying when the NFC wins. Correlated, sure. Caused, obviously not. Your original question is technically not any more valid than the football strategy since months on ...
by MN Finance
Mon Apr 06, 2015 10:49 pm
Forum: Investing - Theory, News & General
Topic: Charity-RMD or appreciated stock
Replies: 7
Views: 528

Re: Charity-RMD or appreciated stock

If you want a scenario within your parameters that gives a slight edge to donation of securities, we should assume the taxpayer is not affected by any phaseouts or credits based on AGI (e.g., medicare premiums, or deductible med expenses, or increased taxation of SS,...). In addition you would also...
by MN Finance
Mon Apr 06, 2015 1:15 pm
Forum: Investing - Theory, News & General
Topic: Charity-RMD or appreciated stock
Replies: 7
Views: 528

Re: Charity-RMD or appreciated stock

The QCD is probably always optimal. Even more so if the stock might never be sold in your lifetime. Les so, or not optimal, if you will need to, or want to, sell the stock at some point (diversification or consumption.)
by MN Finance
Wed Mar 25, 2015 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS versus TIAA Trad for fixed-income ?
Replies: 14
Views: 893

Re: TIPS versus TIAA Trad for fixed-income ?

Because the bond market fairly efficiently already prices in inflation, tips only help with unexpected inflation. So ignoring the fact that they're tips at all the greater question is TIAA over bonds. I would generally prefer TIAA, but the whole portfolio needs appropriate balance. Ie, a 50/50 inves...
by MN Finance
Wed Mar 25, 2015 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: should I include a REIT fund with a .77 ER in my portfolio?
Replies: 5
Views: 718

Re: should I include a REIT fund with a .77 ER in my portfol

Do you just have access to those funds? As just mentioned you should use each company for what they do best and attempt to aggregate that into one blended portfolio. At TIAA the Traditional and Real Estate Accounts are most commonly used to fill that bucket.
by MN Finance
Wed Mar 25, 2015 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2539

Re: FA needs investment advice

To avoid any appearance of hypocrisy, and boost your own personal credibility with your clients, you should invest your own assets similarly to your clients. To do otherwise casts doubt on your confidence in the advice you give to others, and sends a very mixed message: Not at all. Risk level is de...
by MN Finance
Wed Mar 25, 2015 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2539

Re: FA needs investment advice

If your time horizon is 20+ years on your personal investments, why would you change your AA away from stocks? If your base salary is enough in the short term and your business can withstand a market slump, why fiddle with your personal AA if you need long term growth? Because I double up on risk. ...
by MN Finance
Wed Mar 25, 2015 6:14 pm
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2539

Re: FA needs investment advice

Seems clear to me - you need to invest in things uncorrelated to the things that affect your salary. I am not sure that simply altering your AA is going to do it. Perhaps REITs, commodities, or rental properties? Not sure, but you get the idea. It sounds like altering the business end of things is ...
by MN Finance
Tue Mar 24, 2015 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2539

Re: FA needs investment advice

Hi MN Finance, I have really enjoyed thinking about your question. Thanks for posting it. First, I believe the difference between salary and net profit is tax/accounting semantics. What really matters is that you have $400k revenue and $275k expenses, which leaves $125k take home pay (31%). What ma...
by MN Finance
Tue Mar 24, 2015 7:40 am
Forum: Investing - Help with Personal Investments
Topic: Tax Differed Variable Annuity
Replies: 16
Views: 1252

Re: Tax Differed Variable Annuity

You can make the case for an annuity in order to have a place to invest in tax inefficient investments if 1) the time frame is long enough, 2) the cost of the annuity is low enough, and 3) interest rates are high enough. You fail on number 3) because a) you probably don't hold much money in bonds an...
by MN Finance
Mon Mar 23, 2015 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: 403b Question
Replies: 26
Views: 2038

Re: 403b Question

I don't have access to the studies, but if the expenses exceed 1.5% the calculations usually turn in favor of forgoing the retirement plan and investing in a taxable account (at least for a long holding period)
by MN Finance
Mon Mar 23, 2015 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need irrevocable life insurance trust (ILIT)?
Replies: 27
Views: 1906

Re: Do we need irrevocable life insurance trust (ILIT)?

One question is the need for a 10M policy (which isn't your question). Is that amount accurately matched against your lost earnings over the next 20 years if you die tomorrow? If not, then that solves your problem. If so, then you have to determine if the hassle is worth it. You have trust set up co...
by MN Finance
Mon Mar 23, 2015 11:41 am
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2539

Re: FA needs investment advice

Thanks much! Sorry for the lack of clarity in my original post. My question boils down to whether or not I should reconsider my target portfolio, which is currently about 85/15. Our current portfolio is approximately $400k with a retirement target of $1.5M. (Our portfolio was about $100k larger prio...
by MN Finance
Sun Mar 22, 2015 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2539

Re: FA needs investment advice

- there are millions of people in the USA whose income and investments are tied to the stock market. When recession hits, people lose their jobs, or their income stops growing, they are forced to take a pay cut, AND their portfolios take a hit. Ignoring your other comments to stay on topic, I'll ju...
by MN Finance
Sun Mar 22, 2015 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2539

Re: FA needs investment advice

I would say thanks for the replies, but the interest appears to be in our business model rather than the variability of my personal income (tied to the market.) I would rather not comment on our business model, since it's not the focus of my question and would divert the subject of the thread. (I ha...
by MN Finance
Sun Mar 22, 2015 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2539

FA needs investment advice

In the late 90s and early 00's while starting my career as a broker at a large wire house, I spent much of my time learning about investments from the diehards group on the M* board. I've stayed in the industry (not at a wire house) and about 2 years ago rediscovered the BH group at the same time th...
by MN Finance
Sun Mar 22, 2015 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Can I roll VA into Traditional IRA tax-free?
Replies: 5
Views: 443

Re: Can I roll VA into Traditional IRA tax-free?

Thanks to everyone for the feedback. Clearly my ignorance abounds on this so I've got to go read my contract. I know that most what I put in it 7 years ago was from a defined contribution account from a former employer. So it may well be qualified. If it is, can I just roll it to traditional Ira ta...
by MN Finance
Sat Mar 21, 2015 3:29 pm
Forum: Investing - Theory, News & General
Topic: ACATS Vanguard "Push Account"
Replies: 3
Views: 483

Re: ACATS Vanguard "Push Account"

There's nothing wrong with this, but it clearly is a lot of work for what appears just about zero benefit. Every time you acat securities you have to sign something, at a minimum.
by MN Finance
Fri Mar 20, 2015 10:00 pm
Forum: Personal Consumer Issues
Topic: Children's Swingset
Replies: 43
Views: 2932

Re: Children's Swingset

We spent 5k on a decent size Rainbow system. It's built well. We paid to install it, or maybe that was part of the package. My time is worth way to much to even consider DIY on that (and I'm fairly handy.) Our 4 kids spend hours and hours out there almost daily in the summer. Best money I ever spent...
by MN Finance
Wed Mar 18, 2015 9:05 am
Forum: Investing - Theory, News & General
Topic: [New Member Observations- Covered Calls, Financial Advisors]
Replies: 227
Views: 18486

Re: Observations from a first time poster, long time reader.

The reason calls aren't talked about much is primarily because the BH group doesn't understand them, and has no interest in making investing complicated (albeit mild complication.) The whole point of the board is to create simplification in a business where the industry creates unneeded complexity i...
by MN Finance
Tue Mar 17, 2015 8:52 pm
Forum: Investing - Theory, News & General
Topic: Looking for dirt cheap commissions on DFA funds
Replies: 24
Views: 2860

Re: Looking for dirt cheap commissions on DFA funds

You can eat the costs. You can use other funds. You can negotiate. You can push DFA to issue another share class with a higher ER and revenue share.
by MN Finance
Fri Mar 13, 2015 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Financial Advisor Put Together This Portfolio - Thoughts?
Replies: 27
Views: 2352

Re: Financial Advisor Put Together This Portfolio - Thoughts

It's horrible. Use the K-I-S-S method. Vanguard Total Stock Market Vanguard International Stock Market Vanguard Total Bond Nuff said. If you want to add some spice, add: Vanguard Healthcare Vanguard REIT Vanguard S & P 500 Growth As for the cash, you dump that into https://www.ufbdirect.com and...
by MN Finance
Fri Mar 06, 2015 9:22 pm
Forum: Personal Consumer Issues
Topic: Washing Dress Shirts
Replies: 38
Views: 2893

Re: Washing Dress Shirts

These days a decent mid priced non iron dress shirt can be washed on cold, then dried on low and hung up without ironing or cleaners. Should still look fresh after 12/14 hours. If you're not getting that you need to buy something higher quality. For me it's not even cost (since I spend 80 a shirt) i...
by MN Finance
Wed Mar 04, 2015 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone investing in Vanguard Global ex-U.S. Real Estate ETF
Replies: 16
Views: 1295

Re: Anyone investing in Vanguard Global ex-U.S. Real Estate

Currently split my AA 2 parts TIAA RE, 1 part VNQ/I but considering switching VNQ/I to DFA global
by MN Finance
Mon Mar 02, 2015 11:09 pm
Forum: Investing - Help with Personal Investments
Topic: What if you already have a couple million?
Replies: 42
Views: 6838

Re: What if you already have a couple million?

By definition, need, willingness, and ability to take risk don't/can't all line up. That's the very point. That eventually there is flexibility which will drive the decision one way or another. The point is NOT that if you've won the game you take chips off the table. That's one outcome, but the oth...
by MN Finance
Mon Mar 02, 2015 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: PBS NewsHour segment on Social Security
Replies: 27
Views: 3943

Re: PBS NewsHour segment on Social Security

Wait to 70 to claim SS is no brainer. People want to have SS in 62 is basically they don't like their work. If they quit without SS, they don't have enough to live on. If you don't like your work, you shouldn't take the job, take a job you like even with less pay. At 85, Warren Buffet is still work...
by MN Finance
Mon Mar 02, 2015 10:51 pm
Forum: Investing - Help with Personal Investments
Topic: Want to make $750K into $1m...Help
Replies: 25
Views: 2721

Re: Want to make $750K into $1m...Help

I don't get it. What's the money for? You mentioned college. Is that it? You want to get it to a million? What's the point of that? Is this your retirement savings? Do you have other money? Do you work? You sold after 9/11? Sold what? Did you lose money? You got back in then sold again in 09? In ord...
by MN Finance
Sun Mar 01, 2015 12:08 am
Forum: Investing - Help with Personal Investments
Topic: Accidental After Tax Contribution to Roll Over IRA
Replies: 13
Views: 890

Re: Accidental After Tax Contribution to Roll Over IRA

Were you eligible to deduct the contributions? If so, just leave it and file amended returns and get the refunds then use a Roth going forward (since you're unwilling to convert the whole thing, which is the easiest and probably best solution)

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