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Re: Adj Complife (whole life ins) advice

Almost certainly you have made a bad decision to purchase this product. That can't be changed. You now need to decide if you should make the most of it or just totally move on. The major costs are sunk and going forward the return improves although as mentioned above, dividends have been going down ...
by dhodson
Wed Sep 17, 2014 10:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Adj Complife (whole life ins) advice
Replies: 8
Views: 343

Re: Macbook Air; how much RAM?

If I'm not mistaken taking the 4 to 8 will help with the onboard video so id go with 8. I think 16 would be over doing it.
by dhodson
Wed Sep 17, 2014 12:53 pm
 
Forum: Personal Consumer Issues
Topic: Macbook Air; how much RAM?
Replies: 56
Views: 2694

Re: The Annuity Puzzlement

During that time a lot of people have seen pensions go south and insurance companies go under as well. Those events likely have shaped the thinking. Additionally in the past, you didn't really have a choice but were given a pension. Then there was a time period where you could have either or and po...
by dhodson
Wed Sep 17, 2014 9:43 am
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 88
Views: 5094

Re: a look at equity indexed annuities

There just isn't any magic in this world. Why should a strategy of mostly bonds with a small slice of options plus high fees work better? It doesn't.
by dhodson
Wed Sep 17, 2014 8:48 am
 
Forum: Investing - Theory, News & General
Topic: a look at equity indexed annuities
Replies: 1
Views: 202

Re: The Annuity Puzzlement

The paradox here is that people of my generation retired and happily took a Defined Benefit pension, which is? An annuity. Now, people retire with some lump sum in a Defined Contribution plan, and purchasing a simple annuity is evil or unreasonably risky? I don't get it. L. During that time a lot o...
by dhodson
Tue Sep 16, 2014 11:21 pm
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 88
Views: 5094

Re: How much to self insure LTC and longevity? hypothetical

Some thoughts: If you're looking to a possible Medicaid situation, the 5 year "look-back" rule exempts assets placed into an single premium immediate annuity (with no period certain) for the life of a healthy spouse. LTC carriers having been consistently raising premiums, with the excuse ...
by dhodson
Tue Sep 16, 2014 5:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much to self insure LTC and longevity? hypothetical
Replies: 13
Views: 677

Re: What evidence would prove the Boglehead mentality wrong?

given the amount of evidence currently available, it is unlikely that a different method could be proven superior within our lifetimes. For instance lets just say that I have a strategy that outperforms indexing when including costs. I would need 20 years or more of data on it and id need others to ...
by dhodson
Tue Sep 16, 2014 5:19 pm
 
Forum: Investing - Theory, News & General
Topic: What evidence would prove the Boglehead mentality wrong?
Replies: 77
Views: 4692

Re: How much to self insure LTC and longevity? hypothetical

Say you are a married couple about to retire at age 65, in average health neither better nor worse than average with average family history. You will receive SS of $2500 per month and have $6000 per month in expenses. Your home is paid off and you have no debt and your kids if any are self sufficie...
by dhodson
Tue Sep 16, 2014 1:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much to self insure LTC and longevity? hypothetical
Replies: 13
Views: 677

Re: Strange Billing Practice by Medical Provider

I would contact the PPO. I can see this being acceptable if the amount is what he/she will get and your policy allows you to be reimbursed the same (or counted towards deductible as appropriate). While I say acceptable, it probably isn't optimal since it transfers risk of not getting paid to you fro...
by dhodson
Tue Sep 16, 2014 12:49 pm
 
Forum: Personal Consumer Issues
Topic: Strange Billing Practice by Medical Provider
Replies: 37
Views: 2451

Re: Strange Billing Practice by Medical Provider

the provider either does not want to go through the hassle of billing (which is not that big a deal really) or is afraid the patient will not pay the balance or does not want to pay his biller. Collecting up front is fine, but I would still request that the provider submit the claim. That way the p...
by dhodson
Tue Sep 16, 2014 11:00 am
 
Forum: Personal Consumer Issues
Topic: Strange Billing Practice by Medical Provider
Replies: 37
Views: 2451

Re: Young Guy, Probably Not Going To Live A Long Time

Sorry for your difficulties.

I'd recommend though giving some of it away while you are alive instead of waiting until afterwards.

I would hope that your good deeds provide you some satisfaction in the time you have remaining.
by dhodson
Mon Sep 15, 2014 8:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Young Guy, Probably Not Going To Live A Long Time
Replies: 30
Views: 4217

Re: You may want to rethink the odds of ever needing LTCi

I believed that we had enough in our accounts to cover LTC, but my wife wanted LTCi. So, we bought LTCi. My policy only costs $283 per year, with a one year elimination period and $100/day for six months. My wife's policy costs $2,800 per year, with a one year elimination period and a $200/day paym...
by dhodson
Mon Sep 15, 2014 4:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 58
Views: 5126

Re: You may want to rethink the odds of ever needing LTCi

Universal life would provide less ltci dollars then a standard ltci policy so it will never be the answer for the tail risk Right, which is why I bought term , not universal life, with a living needs rider. Glad you are happy with that decision. If I'm not mistaken its been discussed about the conc...
by dhodson
Mon Sep 15, 2014 1:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 58
Views: 5126

Re: Buying Annuity at Young Age for Retirement?

Return will be so low that your spending power will be less.

Insurance companies don't have magical investments.
by dhodson
Mon Sep 15, 2014 10:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Buying Annuity at Young Age for Retirement?
Replies: 6
Views: 629

Re: You may want to rethink the odds of ever needing LTCi

Universal life would provide less ltci dollars then a standard ltci policy so it will never be the answer for the tail risk
by dhodson
Mon Sep 15, 2014 9:58 am
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 58
Views: 5126

Re: DINK 200K household income - ways to reduce taxable inco

Focusing on taxes alone will result in being sold a bad investment option.
by dhodson
Sun Sep 14, 2014 5:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: DINK 200K household income - ways to reduce taxable income?
Replies: 31
Views: 3454

Re: You may want to rethink the odds of ever needing LTCi

Additionally, the higher the chances become the less likely the insurance companies will stay in business without additional rate increases. reduced lapse rates spiked rates. If utilization also goes up then it won't be pretty.
by dhodson
Sat Sep 13, 2014 9:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 58
Views: 5126

Re: Help with annuity questions

They won't share their own tables IRA stands for both individual retirement account and individual retirement annuity. Might want to be sure which we are talking about Likely the reason is bc an insurance agent sold it to him. They are good at selling. There isn't a magic bullet here. Sounds like su...
by dhodson
Sat Sep 13, 2014 6:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with annuity questions
Replies: 13
Views: 824

Re: Help with annuity questions

I dont think you are going to find "an answer" the way you are looking at this. A few reasons, first off is that those tables arent what the insurance company uses. In the end that doesnt matter to you. What i would look at (assuming you want an income payment stream) is the payment from t...
by dhodson
Sat Sep 13, 2014 5:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with annuity questions
Replies: 13
Views: 824

Re: Cash Balance Defined Benefit Plan

OP, give Vanguard a call , they may administer DB plans as well as handle the money , I know a few years ago they had K administrators as well as actuaries on board - and as we know they tend to be low cost . unless things are different last time i checked (a few years ago), they did not act as a T...
by dhodson
Sat Sep 13, 2014 5:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cash Balance Defined Benefit Plan
Replies: 8
Views: 772

Re: Help with annuity questions

you do need to call the insurance company as suggested.

be careful with interpreting the return. Typically the number they provide includes return of principal.
by dhodson
Sat Sep 13, 2014 5:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with annuity questions
Replies: 13
Views: 824

Re: The Annuity Puzzlement

Things can change over the term of the contract - do you really think an insurance company will necessarily stay viable for the 30 years or so it's paying out money? Are you really willing to bet on that up front? Also, I have never understood - and will never understand - why people are willing to...
by dhodson
Sat Sep 13, 2014 3:52 pm
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 88
Views: 5094

Re: Could you sleep with all your money in Berkshire Hathawa

I could sleep but i know it wouldn't be a wise choice.

I can sleep under such pressure.
by dhodson
Sat Sep 13, 2014 12:32 pm
 
Forum: Investing - Theory, News & General
Topic: Could you sleep with all your money in Berkshire Hathaway?
Replies: 42
Views: 2797

Re: The Annuity Puzzlement

At what age should you buy a SPIA with the low interest rates we now have? Thanks You dont get to pick interest rates. SPIAs do produce less at the moment but if you NEED a SPIA then you dont have a choice. Its pretty hard to "market time" interest rates and know interest rates and inflat...
by dhodson
Sat Sep 13, 2014 11:31 am
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 88
Views: 5094

Re: The Annuity Puzzlement

People here are talking about the possibility of market crashes every day, why has there been no talk about the possibility of SPIA going under? The market can crash at any time, bring down the SPIA insurance company with it. Is an SPIA insurance company stronger than many biggest U.S. banks? It ha...
by dhodson
Fri Sep 12, 2014 9:46 pm
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 88
Views: 5094

Re: The Annuity Puzzlement

This has been discussed multiple times

You may wish to search spia

A few points though

That 5.5% you gave included return of principal

Likely you looked at a non inflation protected product


I plan to buy a spia at age 80 if in good health.
by dhodson
Fri Sep 12, 2014 8:50 pm
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 88
Views: 5094

Re: Cash Balance Defined Benefit Plan

OP, I'd just talk to a few TPA and/or pension consulting firms in your area and see what they charge - many accountants also have relationships with these firms and could quarterback the administration for you. Bigvol , the TPA firm just grabs asset info from Vanguard periodically to do the adminis...
by dhodson
Fri Sep 12, 2014 11:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Cash Balance Defined Benefit Plan
Replies: 8
Views: 772

Re: Is there a "catch" in this Xfinity offer ?

Both are decent speeds. If you are truly getting around 18 with your ATT then id probably just stick with what you got unless you notice problems with video such as Netflix. If all you do is surf the web then likely you wont notice any improvements. As others have mentioned the speed they tell you i...
by dhodson
Fri Sep 12, 2014 11:43 am
 
Forum: Personal Consumer Issues
Topic: Is there a "catch" in this Xfinity offer ?
Replies: 23
Views: 1577

Re: What's your take on this article about annuities vs 10/9

My take is that it is loony. If I'm reading the numbers right they are saying that It is better to invest in a 90%-safe-bond portfolio that returns around 10% annually than to buy a single-premium annuity that pays out 6.5% per year annually. Well, OK. But I can top that. Even better to invest in a...
by dhodson
Thu Sep 11, 2014 9:58 pm
 
Forum: Investing - Theory, News & General
Topic: What's your take on this article about annuities vs 10/90?
Replies: 9
Views: 912

Re: What's your take on this article about annuities vs 10/9

First off, the article and your topic is only about lifetime SPIAs. There are lots of different types of annuities. 2nd it isnt that most of us are either pro or against a SPIA. Its IF a SPIA makes sense and when. A lifetime SPIA is most useful when you want an insurance company's guarantee to make ...
by dhodson
Thu Sep 11, 2014 9:42 pm
 
Forum: Investing - Theory, News & General
Topic: What's your take on this article about annuities vs 10/90?
Replies: 9
Views: 912

Re: Captive Insurance

A captive insurance company is actually a well accepted investment vehicle, as long as you're insuring actual risks and paying reasonable premiums. I am not an expert in them by any means, but I don't believe they are a gray area. I do know that your friend will need very experienced attorneys and ...
by dhodson
Thu Sep 11, 2014 11:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Captive Insurance
Replies: 11
Views: 795

Re: Professional indemnity insurance

Why not get a 2nd opinion?

In the end though I imagine you won't be able to avoid any blame if things go sour.
by dhodson
Wed Sep 10, 2014 8:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Professional indemnity insurance
Replies: 4
Views: 287

Re: Combo Plan [Retirement plan]

The truth is you don't want a defined benefit with a high deduction. You want one with the lowest deduction. This is bc the benefit is defined typically you are trying to max one out which equates to about 2.5 million in assets at normal retirement in order to provide a compensation of around 210k p...
by dhodson
Wed Sep 10, 2014 11:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Combo Plan [Retirement plan]
Replies: 22
Views: 1575

Re: Colleague being fleeced by insurance agent / Ponzi Schem

It's more overconfidence than hubris. Experienced salesman are very good at hitting the right notes with high net worth prospects. There's a tendency for the prospect to identify with the perceived expertise of the pitchman. The nuance of the presentation can be difficult to parse. For example, &qu...
by dhodson
Tue Sep 09, 2014 9:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Colleague being fleeced by insurance agent / Ponzi Scheme?
Replies: 54
Views: 5165

Re: Colleague being fleeced by insurance agent / Ponzi Schem

Do you really think she looked closely at anything? The mere fact that she believes there's a 4% floor suggests she's clueless. C'mon, how far out on the yield curve do have to go to get that? Somewhere to 2156 or thereabouts? Many, many otherwise smart people hear but don't listen when it comes to...
by dhodson
Tue Sep 09, 2014 8:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Colleague being fleeced by insurance agent / Ponzi Scheme?
Replies: 54
Views: 5165

Re: "Why 97% of People Don't Use 529 College Savings Plans."

As mentioned above, most people just don't have the extra cash to do this to begin with. Even those that have some extra cash, it may or may not be the best choice for them. The 3% number is probably near appropriate.
by dhodson
Tue Sep 09, 2014 8:01 pm
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 110
Views: 10284

Re: Colleague being fleeced by insurance agent / Ponzi Schem

You actually don't need to read the policy for whole life, what you need to do is look at an in force illustration. It will show you what is guaranteed and what is illustrated. That way you don't have to worry about what is being credited and what is being subtracted. The guaranteed values and illus...
by dhodson
Tue Sep 09, 2014 7:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Colleague being fleeced by insurance agent / Ponzi Scheme?
Replies: 54
Views: 5165

Re: Captive Insurance

Focusing just on taxes will lead to a bad decision. Whitecoatinvestor.com has a post on this I read this from amazon and decided against http://www.amazon.com/gp/aw/d/1467038660/ref=mp_s_a_1_1?qid=1410299514&sr=8-1&pi=SY200_QL40 Even worse is doing one and using permanent insurance within it.
by dhodson
Tue Sep 09, 2014 5:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Captive Insurance
Replies: 11
Views: 795

Re: Colleague being fleeced by insurance agent / Ponzi Schem

HomerJ wrote:Nisi is right... Mortality credits are separate from stocks and bonds... It's another form of wealth.


Yes but that poster said insurance and bonds. The mortality credits are part of the insurance in the equation in my view.
by dhodson
Tue Sep 09, 2014 3:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Colleague being fleeced by insurance agent / Ponzi Scheme?
Replies: 54
Views: 5165

Re: Kitces: Guaranteed living benefit (GLWB) riders are flaw

How would have than plan worked if stocks dropped another 20% and then stayed down for 20 years (something like japan)? Pretty crappy. She paid all those fees for insurance against low stock market returns. Without the GWLB she wasn't sticking her money in a mutual fund (too risky) . It was going i...
by dhodson
Tue Sep 09, 2014 11:27 am
 
Forum: Investing - Theory, News & General
Topic: Kitces: Guaranteed living benefit (GLWB) riders are flawed
Replies: 9
Views: 719

Re: Colleague being fleeced by insurance agent / Ponzi Schem

I'm not sure why you posted that about SPIAs within a topic mostly about whole life.

Additionally those annuities are pretty much a mixture of bonds and insurance as that person was stating. Sure its an oversimplification and sure there are times when the insurance component has value.
by dhodson
Tue Sep 09, 2014 8:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Colleague being fleeced by insurance agent / Ponzi Scheme?
Replies: 54
Views: 5165

Re: The daddy of all grill islands

Fire magic Webers are fine but not as nice. I have a Vermont which is also nice. I would also say get a green egg. Differential between a Fire Magic and Weber would buy a lot pork shoulder and sir loin to smoke. Weber works great. Yes the price difference is substantial but the op did ask for the d...
by dhodson
Mon Sep 08, 2014 7:39 pm
 
Forum: Personal Consumer Issues
Topic: The daddy of all grill islands
Replies: 35
Views: 2752

Re: The daddy of all grill islands

Fire magic

Webers are fine but not as nice.

I have a Vermont which is also nice.

I would also say get a green egg.
by dhodson
Mon Sep 08, 2014 7:22 pm
 
Forum: Personal Consumer Issues
Topic: The daddy of all grill islands
Replies: 35
Views: 2752

Re: Put $$$cash in annuity b4 claiming financial aide

They don't have any debt to pay down. Like I've said on my origianl post, all rentals and their resident house are all paid off. They cannot set up traditional IRA pre-tax because they don't have pay checks coming from employers. Roth IRA is probably the only way to go. However, each person can onl...
by dhodson
Mon Sep 08, 2014 3:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Put $$$cash in annuity b4 claiming financial aide
Replies: 9
Views: 701

Re: Put $$$cash in annuity b4 claiming financial aide

The better thing to do in my opinion is to max out your retirement accounts including ira/roth ira per year, HSA, and then pay down your mortgage(s) or other debt. Don't hold me to this but I think pre taxed contributions are added back into your AGI for the FAFSA calculations. If you have a pile o...
by dhodson
Mon Sep 08, 2014 2:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Put $$$cash in annuity b4 claiming financial aide
Replies: 9
Views: 701

Re: Credit Card Account [Automatically Closed] due to inacti

They should close accounts that don't have activity. Its helpful for both yours and their protection.
by dhodson
Mon Sep 08, 2014 2:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Credit Card Account [Automatically Closed] due to inactivity
Replies: 29
Views: 1908

Re: Put $$$cash in annuity b4 claiming financial aide

Just because it isn't part of FASA doesn't mean that the college your kid will attend doesn't consider this information. You would need to see what that particular college or colleges is looking at and hope it doesn't change between now and when your kid goes to college. As others has mentioned, you...
by dhodson
Mon Sep 08, 2014 1:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Put $$$cash in annuity b4 claiming financial aide
Replies: 9
Views: 701

Re: Hi Bogleheads, Fixed Annuity inside 401k - thoughts?

I'm not trying to be rude about it but they all have costs associated with them. If they didn't then the insurance company would go out of business. Frequently it is difficult to determine the actual costs in my view.
by dhodson
Mon Sep 08, 2014 10:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Hi Bogleheads, Fixed Annuity inside 401k - thoughts?
Replies: 28
Views: 1388
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