Hi!
Could you now list the reasons to not be in an index fund? A more balanced approach to discussing index funds is necessary to see the whole picture. Basically, complete and impartial data is always appreciated. You are well suited to give newbies a complete picture.
Thanks
PB
Search found 12 matches
- Mon Nov 17, 2014 10:10 am
- Forum: Investing - Theory, News & General
- Topic: Why I Like Index Funds
- Replies: 26
- Views: 7820
- Thu Oct 23, 2014 10:10 am
- Forum: Personal Finance (Not Investing)
- Topic: [Wants current income and to leave an estate]
- Replies: 9
- Views: 982
Re: [Wants current income and to leave an estate]
Thanks everyone. That answered my questions to date. I need to find out how much I am willing to live on annual and hope that it's less that 4% of principle. I will also invest the money in more stocks than bonds to satisfy the first criteria and keep the rest for current income. I think it's time to talk to a fee-based CFP. I have one near me. She works for Merrill Lynch.
Anyway, thanks again. Question answered.
Best regards,
PB
Anyway, thanks again. Question answered.
Best regards,
PB
- Thu Oct 23, 2014 5:30 am
- Forum: Personal Finance (Not Investing)
- Topic: [Wants current income and to leave an estate]
- Replies: 9
- Views: 982
[Wants current income and to leave an estate]
Hey All, How would you square this circle? I have two competing goals. I want to put my wealth in a living trust and leave it to my beneficiaries and their progeny. That's simple enough. Passive index funds seem to be the best choice. The fly in the ointment is the second goal. I need current income for retirement. I will need that for at least forty years. I am fifty-one years old, unattached, with no dependents or adult children. I have a bunch of cash in my checking account (>$10,000,000.00) and another one million in Vanguard funds (500 Index, STAR, Wellington, Wellesley). I have an allocation of 70% stocks and 30% bonds. That's good for my first goal . The cash will be invested to give me current income. I have no pension, IRA, 401(k) ...
- Fri Jul 11, 2014 6:53 am
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
Re: How to Handle a Multi-Generational Trust
...Size of Portfolio: approx. $11,000,000.00 by Christmas. Could be substantially more depending on my negotiating skills. ... 3. All the assets described, plus the house will be put in a living trust in the first quarter 2015. 4. The trust will be generation skipping. 5. My son will be able to receive the dividends if he wishes when we both die. He can simply reinvest them too until he retires. He cannot touch the capital gains. 6. My son's children (not born yet) will be the ultimate recipients of the trust. They are the ones that will have to dissolve the trust and pay all the taxes and start their own trusts with what remains. Poor them. ... ...My son, being one of the three trust managers, may want a different allocation until he reac...
- Thu Jul 10, 2014 2:55 pm
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
Re: How to Handle a Multi-Generational Trust
Hi Archbish99,
Thanks for the book recommendation. I will get it. I like the idea of being nuanced in the trust document. I want to give my trustees and beneficiaries some space to change. I also bought the NOLO book in Estate Planning. I will read that one first and talk to our family E&T lawyer. If I still need more info I will throughly read your recommended book instead of the planned skimming.
Thanks a bunch!
Best regards,
Paul
Thanks for the book recommendation. I will get it. I like the idea of being nuanced in the trust document. I want to give my trustees and beneficiaries some space to change. I also bought the NOLO book in Estate Planning. I will read that one first and talk to our family E&T lawyer. If I still need more info I will throughly read your recommended book instead of the planned skimming.
Thanks a bunch!
Best regards,
Paul
- Thu Jul 10, 2014 5:59 am
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
Re: How to Handle a Multi-Generational Trust
Situation: You're in a good position. With the amount of assets, the doors are open to most institutional trust companies and asset management companies. PBB: I agree with Smackboy- you are indeed in a good position. Having spoken with a number of trust companies in the Northeast, I can assure you that ALL of the ones I spoke with would be delighted to see you- with the hope and expectation they ultimately will have your assets to play with. In any meeting, it is always prudent to be polite but very wary. An easy way to tell if a bank trust representative is trying to mislead you is to look at their face to see if their lips are moving. Shawcroft Hi Shawcroft! No worries. I am no fool. I will be wary. I will also only accept the services I...
- Thu Jul 10, 2014 5:51 am
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
Re: How to Handle a Multi-Generational Trust
Hi!abuss368 wrote:I am interested in the responses considering everything is in a taxable account with no tax advantaged in terms of the bond options.
I believe the trust would file a tax return?
Yes, that is what I have been told. I or my trustees can file the tax return or I can have the trust administered by Vanguard and they can prepare and file the tax return.
Best regards,
Paul
- Thu Jul 10, 2014 5:49 am
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
Re: How to Handle a Multi-Generational Trust
What happens if your son does not have children? What happens if your son dies after you die, but before he marries and before he has children? If seems like you think him having children is a foregone conclusion, when that may not be the case. Hi! Thanks for the response. I was thinking that he can specify his own successors after he is old enough to understand the issues. And yes, I assume he will marry and have kids. That may be wrong. I do have three grand nieces (ages 1, 3, and 5) that can be named as beneficiaries while I am alive. Surely someone of that age range will have progeny? Hopefully? I want my money to go along my bloodline. I will make sure that the trustees can name beneficiaries within reason. There must be some flexibil...
- Wed Jul 09, 2014 2:39 pm
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
Re: How to Handle a Multi-Generational Trust
Hi Smack Boy! Thanks for the thoughtful post. I have been reading the VNTC thread here at BH. It was very informative. I was thinking that I do not need investment management. I have a young nephew (not a beneficiary) who is a financial whiz who worked for Vanguard for years. Now he works for American Express. He couldn't resist the huge paycheck and benefits. He is all onboard with a Vanguard portfolio and will be able to take care of my wife and progeny in case of my death. I just need simple trust administration from VNTC. The estate and trust lawyer I will be using is a trusted family friend (for generations). He built a number of trusts for my family including my father's and my uncle's. I have read both documents. He is very thorough....
- Wed Jul 09, 2014 6:56 am
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
Re: How to Handle a Multi-Generational Trust
Hi Shawcroft, I will read the thread(s) about the Vanguard National Trust Company (and other comparative trust companies). It sounds intriguing. I have a call today with Andrew Strum from Vanguard at 9:00 a.m. CDT concerning my allocations and fund choices. I might as well bring up the trust company too. How deep does this rabbit hole go!? This whole journey is fascinating. What instruments the human mind can come up to facilitate health and happiness over generations is amazing. I have read a number of investing books. Graham's classic was excellent. Bogle's books were also thorough and convincing. His relentless arithmetic is undeniable. The books on stock picking and market timing sounded like a bunch of unsubstantiated rubbish after rea...
- Wed Jul 09, 2014 5:43 am
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
Re: How to Handle a Multi-Generational Trust
Hi Asset_Chaos, Thanks for the reply. You make a lot of sense. I think I will figure out the asset allocations that will work long term and over generations. The 50/50 sounds like a good starting point to do my research. I will call my two advisors, one my advisor at Vanguard and the other, my trust financial planner, and nail down what is recommended by all. I also like the broad funds as the core investments: Vanguard Total Stock Market Index Admiral Shares (VTSAX) Vanguard Total Bond Market Index Admiral Shares (VBTLX) Vanguard Total International Stock Market Index Admiral Shares (VTIAX) Vanguard Total International Bond Market Index Admiral Shares (VTABX) Breaking down further seems a little too much control as well as a way to "m...
- Tue Jul 08, 2014 2:34 pm
- Forum: Personal Investments
- Topic: How to Handle a Multi-Generational Trust
- Replies: 24
- Views: 4586
How to Handle a Multi-Generational Trust
Hi All, Emergency Fund: $17,000.00 Debt: None Tax Filing Status: Head of Household with 2 dependents Tax Rate: 20% Fed, 7% State (All income comes from capital gains, dividends, and a tiny amount of interest) State: Arkansas Age: 50 Desired Asset Allocation: Good question, see below Desired International Allocation: Yet another good question, see below Size of Portfolio: approx. $11,000,000.00 by Christmas. Could be substantially more depending on my negotiating skills. (Wish me luck!) Taxable: 92% Cash (~$10,000,000.00) 4% Mutual Funds (~$450,000.00) 4% Stocks at Brokerage (~$450,000.00) Vanguard: Expense Ratio 500 Index VFIAX $ 83,671.67 0.05% Emerging Markets VEMAX $ 46,737.05 0.15% STAR VGSTX $241,416.02 0.34% Wellesley VWINX $ 30,489.1...