Search found 1260 matches

by bsteiner
Sat Aug 01, 2015 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: What to do when approaching retirement and 90% is in taxable account
Replies: 7
Views: 1271

Re: What to do when approaching retirement and 90% is in taxable account

When the alimony ends, her income will be lower If she's in the 15% bracket, her tax rate on qualified dividends and long-term capital gains will be zero. This will allow her to sell the highly appreciated JPMorgan fund without paying capital gains tax. It will also allow her to convert her traditio...
by bsteiner
Fri Jul 31, 2015 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning
Replies: 3
Views: 444

Re: Estate Planning

Probating a Will is generally not particularly difficult, burdensome or expensive. We file the Will with the court together with some forms, a death certificate, and a filing fee. Is there some particular reason to try to "avoid" it in this case? Putting her assets in joint ownership may c...
by bsteiner
Thu Jul 30, 2015 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries for taxable and non-taxable accounts
Replies: 12
Views: 1195

Re: Beneficiaries for taxable and non-taxable accounts

... a disclaimant must understand that they cannot accept an account before disclaiming it. The IRS has made an exception for the date of death RMD of a retirement plan that a beneficiary must complete if the participant did not. ... The IRS didn't make an exception for required distributions. Unde...
by bsteiner
Wed Jul 29, 2015 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Help me understand defined benefit plans
Replies: 3
Views: 383

Re: Help me understand defined benefit plans

There are two basic types of retirement plans, defined benefit and defined contribution. In a defined contribution plan, you have an account. Your or your employer put in money. You get whatever it grows to. The employer doesn't promise what it will grow to. Examples are profit-sharing plans, 401(k)...
by bsteiner
Wed Jul 29, 2015 10:51 am
Forum: Investing - Theory, News & General
Topic: What do you know... (that no one else knows)?
Replies: 11
Views: 1466

Re: What do you know... (that no one else knows)?

There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know. -- Donald Rumsfeld It's that last one that gets you. There are als...
by bsteiner
Wed Jul 29, 2015 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Help with my mother's AA within confines of her advisor
Replies: 16
Views: 1233

Re: Help with my mother's AA within confines of her advisor

... I have recently worked with her estate planning lawyer to establish an irrevocable trust for her assets. I am sole Trustee. ... Here’s her info: Total Assets: just over $1M (not including her home’s value) ... If you're the trustee, you're responsible for investing the assets prudently or hirin...
by bsteiner
Tue Jul 28, 2015 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Estate Plan and Will
Replies: 12
Views: 862

Re: Estate Plan and Will

The main issues to consider are: 1. How much control should the surviving spouse have? To the extent the surviving spouse doesn't have control, who should have control? 2. At what age (if at all) should each child get to control his/her share? Until then, who should have control? 3. Who should be th...
by bsteiner
Tue Jul 28, 2015 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Re-open Probate?
Replies: 7
Views: 694

Re: Re-open Probate?

Probating a Will is generally a small part of the estate administration, and is generally not particularly difficult. However, the forms are the same for a $250,000 estate as for a $250 million estate, so it's more significant in the context of a small estate. Often there's more work involved in dea...
by bsteiner
Mon Jul 27, 2015 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Disclaiming IRA or 401k inheritance
Replies: 3
Views: 404

Re: Disclaiming IRA or 401k inheritance

An individual can disclaim some or all of an IRA. It's not clear whether a 401(k) plan has to recognize disclaimers, since the plan is governed by ERISA which trumps state law. Whether a trustee can disclaim depends on state law. In states where trustees can disclaim, trustees are unlikely to discla...
by bsteiner
Sun Jul 26, 2015 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: Inexperienced Trustee
Replies: 53
Views: 3427

Re: Inexperienced Trustee

... Neither attorney I have consulted mentioned the Rule Against Perpetuities. This is a Florida "dynasty" trust. .... The rule against perpetuities in Florida permits a trust to last for 360 years. To avoid running afoul of the rule against perpetuities, the trust agreement probably says...
by bsteiner
Sun Jul 26, 2015 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Inexperienced Trustee
Replies: 53
Views: 3427

Re: Inexperienced Trustee

... if the trust merely violates the Rule Against Perpetuities (RAP), surely that wouldn't mean the trust is invalid and can be dissolved on that basis alone? Why wouldn't it simply be forced to dissolve by the time period required by the state? ... If the common law rule against perpetuities appli...
by bsteiner
Sun Jul 26, 2015 1:37 pm
Forum: Personal Consumer Issues
Topic: Would you look down on a co-worker for driving a beater?
Replies: 172
Views: 10611

Re: Would you look down on a co-worker for driving a beater?

I work in Manhattan so I don't know what kinds of cars (if any) my co-workers have and they don't know what kinds of cars I have.
by bsteiner
Sat Jul 25, 2015 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Inexperienced Trustee
Replies: 53
Views: 3427

Re: Inexperienced Trustee

... the new attorney ... said that based on the wording of my parents' trust, we need two new trusts, one for my sister and one for me. These would also be irrevocable. I really feel that the first attorney gouged my folks over the years and the language he used in the trust showed that he hoped to...
by bsteiner
Sat Jul 25, 2015 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Inexperienced Trustee
Replies: 53
Views: 3427

Re: Inexperienced Trustee

I would be concerned about spending 2% a year on investment expenses. The prudent investor law allows trustees to delegate investments, but also says that trustees have to consider costs. I don't know what the result would be if a beneficiary were to bring a claim. (I'm involved in a litigation invo...
by bsteiner
Thu Jul 23, 2015 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: estate planning when giving most to charity
Replies: 12
Views: 970

Re: estate planning when giving most to charity

... I don't have nearly the assets to justify a Charitable Remainder Trust either. ... Most charitable remainder trusts are of modest size since very wealthy people can afford to simply give assets to charity. The principal reason for creating a charitable remainder trust is to be able to sell an a...
by bsteiner
Thu Jul 23, 2015 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Financial/Estate Planning
Replies: 13
Views: 783

Re: Financial/Estate Planning

... My wife and I have been trying to find a good, reasonably priced, estate planner .... The price they are quoting is around $3,000 -$5,000, which seems pretty high to my wife and I. ... ... Is $3,000 - $5,000 a reasonable amount? Which is more important, someone "good" or someone you m...
by bsteiner
Sun Jul 19, 2015 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Getting Taxed twice by states - please help
Replies: 12
Views: 1543

Re: Getting Taxed twice by states - please help

... Virginia doesn't have a reciprocal agreement with Arizona (in which neither state taxes the other's residents); rather, it has an agreement with Arizona and a few other states that the credit for taxes paid to two states goes the opposite direction from the usual. ... Your description is better...
by bsteiner
Sun Jul 19, 2015 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Getting Taxed twice by states - please help
Replies: 12
Views: 1543

Re: Getting Taxed twice by states - please help

If you remained domiciled in Virginia, then you were taxable as a Virginia resident. Domicile is sometimes difficult to determine, and we don't have all the facts. Your domicile continues until you establish a new one. Depending on the facts and circumstances involved in your being in New York, Ariz...
by bsteiner
Sun Jul 19, 2015 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: American and Canadian living in Switzerland: Investing and tax questions
Replies: 7
Views: 587

Re: American and Canadian living in Switzerland: Investing and tax questions

... If you know of an immigration attorney familiar with Canadian/American/Swiss tax treaties, I'd love his/her name. I think it is a pretty difficult combination to find and can't think how to even search for this attorney. .... An immigration lawyer is unlikely to be familiar with the tax treatie...
by bsteiner
Sun Jul 19, 2015 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Questions from a Likely Buyer of a FSBO
Replies: 23
Views: 1563

Re: Questions from a Likely Buyer of a FSBO

What's customary in residential real estate transactions varies considerably from state to state, and sometimes even within a state. It would be helpful to know in what state the property is located.
by bsteiner
Sun Jul 19, 2015 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Trust payout condition: Bogleheads quiz?
Replies: 2
Views: 210

Re: Trust payout condition: Bogleheads quiz?

Does it make sense to have some additional requirement on payout conditions from a trust that shows at least some amount of financial understanding? ... Or maybe this is too much control and just pay out at certain ages? It doesn't make sense to require distributions at specified ages. You don't kn...
by bsteiner
Sat Jul 18, 2015 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: giving child part of IRA or 401k in a trust
Replies: 3
Views: 663

Re: giving child part of IRA or 401k in a trust

... Do I need to update my current trust document for the IRA/401k to make sure child gets the assets in a trust? Do I need to set up a trust for child now, with no assets in the trust? ... ... you need to be sure that the trust receiving a retirement plan is qualified for look through treatment. ....
by bsteiner
Wed Jul 15, 2015 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Sprinkle or Sprinkling Trust
Replies: 11
Views: 1030

Re: Sprinkle or Sprinkling Trust

Why is everyone assuming that the goal is to prevent the trust assets from being in the child's estate? Only like .1% of people these days pay the estate tax due to the high exemption and portability. ... I would think there is no issue in naming your daughter the trustee with the discretion to dis...
by bsteiner
Wed Jul 15, 2015 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Sprinkle or Sprinkling Trust
Replies: 11
Views: 1030

Re: Sprinkle or Sprinkling Trust

... Can our child be the sole trustee of the Sprinkling Trust and can she alone distribute the annual income per her determination of allocation, as our attorney has told me? ... As a practical matter, no. In general, a trustee who is a beneficiary cannot participate in a decision to make a discret...
by bsteiner
Tue Jul 14, 2015 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab Inherited IRA from Spouse Pension Beneficiary Rollover Question
Replies: 9
Views: 536

Re: Schwab Inherited IRA from Spouse Pension Beneficiary Rollover Question

The IRS has really botched this one! While they issued PLRs in 1994 and 1996 allowing a surviving spouse to roll over qualified plan death benefits to an inherited IRA, it was PLR 2004-50057 (http://www.irs.gov/pub/irs-wd/0450057.pdf) that convinced several IRA custodian to allow a surviving spouse...
by bsteiner
Tue Jul 14, 2015 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Sprinkle or Sprinkling Trust
Replies: 11
Views: 1030

Re: Sprinkle or Sprinkling Trust

It would be easier to leave your estate to your child outright. However, if you leave it to your child in trust, it won't be included in your child's estate for estate tax purposes, and it will be better protected against the child's creditors and spouses. Our clients almost always provide for their...
by bsteiner
Tue Jul 14, 2015 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Sprinkle or Sprinkling Trust
Replies: 11
Views: 1030

Re: Sprinkle or Sprinkling Trust

We have only one child, an adult who is married and has 2 children in early teens. We need to update our will and trust, and attorney mentioned a Sprinkling Trust whereby, as I understand it, child could sprinkle to our heirs the income from the Trust, in any amount, and can dip into the Principal ...
by bsteiner
Mon Jul 13, 2015 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Grown Children as beneficiaries
Replies: 33
Views: 3227

Re: Grown Children as beneficiaries

You could provide for each child to receive his/her share in a separate trust rather than outright. It's usually better to give the trustees discretion as to distributions rather than to mandate or limit distributions, since no one knows what the future will bring. You could include guidelines if yo...
by bsteiner
Sun Jul 12, 2015 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: WSJ: "Hassle of Inheriting a Brokerage Account"
Replies: 19
Views: 2929

Re: WSJ: "Hassle of Inheriting a Brokerage Account"

... I was *able* to do it myself, and while I agree it "shouldn't be difficult," the fact was that some institutions I dealt with made it *much* more difficult than others did. Paralegal time at the law firm I used is billed at $150/hour, which adds up quickly. I liked my attorney and her...
by bsteiner
Sun Jul 12, 2015 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Durable Power of Attorney when wife is POA
Replies: 22
Views: 1789

Re: Durable Power of Attorney when wife is POA

It's not perfect (since you can't customize it the way you can a traditional power of attorney), but Vanguard's forms should reasonably work for most people. Here is the form, together with their explanation: https://personal.vanguard.com/us/ElfPDFStreamPublic?ts=1436712624173. They offer two choice...
by bsteiner
Sun Jul 12, 2015 6:38 am
Forum: Personal Finance (Not Investing)
Topic: DC-based Estate Attorney Mike Collins' Seminars
Replies: 8
Views: 868

Re: DC-based Estate Attorney Mike Collins' Seminars

thanks for all the responses - I think I'll try a seminar. I don't know the person involved in the seminars, so my comments aren't directed at him. However, you might instead ask around for referrals, and then check the bios and the websites of the persons whose names you get. ... A 2-hour free sem...
by bsteiner
Sat Jul 11, 2015 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: WSJ: "Hassle of Inheriting a Brokerage Account"
Replies: 19
Views: 2929

Re: WSJ: "Hassle of Inheriting a Brokerage Account"

I want to be clear: I did not have difficulty with probating the will. I had trouble with just getting the financial institutions to give me correct and prompt answers about what paperwork (specific types of signature guarantees) they needed in order to even give me information about what was in th...
by bsteiner
Sat Jul 11, 2015 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: WSJ: "Hassle of Inheriting a Brokerage Account"
Replies: 19
Views: 2929

Re: WSJ: "Hassle of Inheriting a Brokerage Account"

... I want to simplify things for my eventual heirs. I had already been leaning in the direction of some form of living trust (to make it easier for my POA to take over my affairs if I become incapacitated prior to death) but reading this article further motivates me. I'd be interested in advice fr...
by bsteiner
Fri Jul 10, 2015 8:31 am
Forum: Personal Finance (Not Investing)
Topic: DC-based Estate Attorney Mike Collins' Seminars
Replies: 8
Views: 868

Re: DC-based Estate Attorney Mike Collins' Seminars

If you go to the free dinner seminar, and you're the one who buys the annuity, the living trust, the timeshare, or the bridge, not only did you pay for your free dinner, but you paid for the free dinners for everyone else in the room.
by bsteiner
Thu Jul 09, 2015 9:46 am
Forum: Personal Consumer Issues
Topic: Worst financial book you have read (or will admit you have read)
Replies: 90
Views: 8526

Re: Worst financial book you have read (or will admit you have read)

... I think that most Bogleheads just are't aware of just how BAD these Indexed Universal Ilfe Insurance (IULi) books truly are :twisted: The sad thing is that Indepenent Maketing Organizations (IMO's) for insurance agents develop lots of scripted sales seminars ("free dinner seminars") t...
by bsteiner
Tue Jul 07, 2015 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: making minor changes to a will
Replies: 9
Views: 1014

Re: making minor changes to a will

In many states, Paralegals are permitted to create Wills. There is one in my area (about the size of half of New Jersey) that does far better work than any of the attorneys - much better than the ones specializing in Elder Law. .... The proper comparison would be to trusts and estates lawyers. In s...
by bsteiner
Mon Jul 06, 2015 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Re: Advice on Whole Life Insurance as part of retirement portfolio
Replies: 40
Views: 1429

Re: Advice on Whole Life Insurance as part of retirement portfolio

... Insurance companies make money of people that lapse, and lose money on people that don't lapse. It all works out in the end as the people that lapse cross subsidise the people that keep it. .... Why is that? Wouldn't the healthier people be more likely to let their policies lapse if they no lon...
by bsteiner
Mon Jul 06, 2015 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Whole Life Insurance as part of retirement portfolio
Replies: 13
Views: 2169

Re: Advice on Whole Life Insurance as part of retirement portfolio

deleted since the post to which it was a response was moved to another thread.
by bsteiner
Sat Jul 04, 2015 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: financial adviser told me not to invest too much in 401k
Replies: 92
Views: 10088

Re: financial adviser told me not to invest too much in 401k

I agree with everybody else--this FA just gave you bad advice. The 401k allows you to avoid dividend and capital gains taxes which will likely leave you with close to 15% more money. So your retirement tax bracket would need to be close to 30% to make avoiding the 401k a good idea even if you are i...
by bsteiner
Sat Jul 04, 2015 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Elder planning
Replies: 6
Views: 926

Re: Elder planning

... Beneficiaries (Payable on Death) titling for all bank accounts and life insurance to avoid asset freezing She shouldn't name beneficiaries for the bank accounts. Her IRA will pass to the named beneficiaries (which could be trusts under her Will as described in the next paragraph). Her house is ...
by bsteiner
Thu Jul 02, 2015 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: power of attorney/trustee question
Replies: 11
Views: 1081

Re: power of attorney/trustee question

The surviving parent's Will (and any trusts under his/her Will) don't take effect until he/she dies. At that point, if A is living but not able to serve as executor or trustee, then if B is the named successor, B will be appointed executor and trustee. The deceased parent's Will is already effective...
by bsteiner
Thu Jul 02, 2015 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Snow Bird Question [State Residency Requirements]
Replies: 54
Views: 5667

Re: Snow Bird Question [State Residency Requirements]

It may be more complicated. The first page of the instructions to the California income tax return says that if the spouse earning California source income is domiciled in a community property state, then the community income is divided between the spouses: https://www.ftb.ca.gov/forms/2014/14_540in...
by bsteiner
Sun Jun 28, 2015 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Lucent offering pension buyout to retirees: what to do?
Replies: 78
Views: 11212

Re: Lucent offering pension buyout to retirees: what to do?

If the buyout amount is fair, he can always turn around and purchase his own annuities with that money (multiple, to spread out the risk among institutions). The annuity from the pension plan will probably pay more than one that he can buy from an insurance company, though it won't be diversified a...
by bsteiner
Sun Jun 28, 2015 8:51 am
Forum: Personal Consumer Issues
Topic: can you recommend comfortable walking shoes?
Replies: 48
Views: 4849

Re: can you recommend comfortable walking shoes?

I've had good luck with Mephisto and Ecco. I used to like the Rockport ProWalker with the replaceable Vibram sole but I haven't seen it in many years.

If you know what size will fit in a given brand, you may be able to find good deals on shoes on eBay.
by bsteiner
Thu Jun 25, 2015 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity: Fidelity vs Vanguard
Replies: 3
Views: 406

Re: Variable Annuity: Fidelity vs Vanguard

In addition to the additional fee (which isn't very much in this case), the annuity converts all of the investment income and gains to ordinary income. You may want to run some numbers to see the impact of this.
by bsteiner
Thu Jun 25, 2015 11:29 am
Forum: Investing - Theory, News & General
Topic: Jim Rogers quotes for today
Replies: 13
Views: 2484

Re: Jim Rogers quotes for today

I heard him speak a couple of times. He has some interesting ideas, but, much like the Yale endowment fund, it would be hard for me to implement some of them even if I wanted to. For example, when someone asked about investing in far-off places, he said that, for example, the next time you're in Teh...
by bsteiner
Thu Jun 25, 2015 9:02 am
Forum: Personal Finance (Not Investing)
Topic: What to do when there is no responsible family, trusts, wills, POA, etc.
Replies: 8
Views: 1308

Re: What to do when there is no responsible family, trusts, wills, POA, etc.

...We are learning the hard way about state law (concerning Wills) when the executor does NOT live in the same state as the deceased .... In most states, it doesn't matter. We've had estates in New Jersey and Texas (with local counsel for the Texas aspects) where there was an executor or administra...
by bsteiner
Wed Jun 24, 2015 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: What to do when there is no responsible family, trusts, wills, POA, etc.
Replies: 8
Views: 1308

Re: What to do when there is no responsible family, trusts, wills, POA, etc.

If neither of you is around, and your daughter isn't ready to administer your estate and control her inheritance, someone has to do these jobs until your daughter is ready to control the assets. If you don't have an appropriate individual, you could name a bank or trust company as executor of the su...
by bsteiner
Mon Jun 22, 2015 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 11 Million Dollar Gift
Replies: 80
Views: 12498

Re: Investing 11 Million Dollar Gift

Index Fan wrote:...I'd move away to a place where you aren't known and don't have to answer prying questions about your new-found wealth. You can always come back and visit friends and relatives from you 'new house'.


In the NY area, lots of people have $11 million or more. You won't stand out.
by bsteiner
Mon Jun 22, 2015 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Pension or Unfair Lump Sum
Replies: 39
Views: 5236

Re: Pension or Unfair Lump Sum

Another factor to consider is that if you take the lump sum and roll it over into an IRA, you may be able to convert some or all of it to a Roth (either all at once or over a number of years to avoid bunching the income), which may add substantial value.

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