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Re: 2nd Opinions on Bond Alternatives?

Don't get overly focused on tax advantaged accounts. That will drive you towards things you don't want like annuities and permanent insurance. Unless you highly value the insurance features then you will likely have less money using those items even if you save more on taxes with them. I'd max out m...
by dhodson
Mon Oct 20, 2014 10:18 am
 
Forum: Investing - Help with Personal Investments
Topic: 2nd Opinions on Bond Alternatives?
Replies: 13
Views: 722

Re: 2nd Opinions on Bond Alternatives?

the funny thing is that with the index annuity the insurance company is investing most of the money in bonds and then a small slice of options. Add in the costs transferred from the insurance company for commission and such and you get the picture.
by dhodson
Sun Oct 19, 2014 9:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2nd Opinions on Bond Alternatives?
Replies: 13
Views: 722

Re: reorganzing parents finances including annuities

Googling found this definition of Inforce: Definition of "Inforce Ledger" A computer generated illustration of the current, projected and guaranteed values of an existing cash value life insurance policy. Generally the illustration begins with the current year and shows the values over th...
by dhodson
Thu Oct 16, 2014 11:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: reorganzing parents finances including annuities
Replies: 8
Views: 857

Re: Offered Cash Balance Plan - RED FLAGS? (physician)

As you realize, you aren't getting real information from them. You also absolutely don't want to focus on the tax deductions. If you do then someone will actually convince you into something that will cost you even more for the same defined benefit. The worst way is to put insurance products within ...
by dhodson
Tue Oct 14, 2014 10:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 850

Re: Offered Cash Balance Plan - RED FLAGS? (physician)

Just as a for instance they could have one created via Schwab for a lot cheaper Now there likely would be less hand holding as well. I am a physician and have my own 401k/ps with a defined benefit plan. If I had to do it all over again, I would have just done the 401k/ps or a Sep ira until I was in ...
by dhodson
Tue Oct 14, 2014 3:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 850

Re: Offered Cash Balance Plan - RED FLAGS? (physician)

Correct for the most part. I supposed some partner could say he/she will cough it up if needed but that isn't likely. The sad part is I bet the senior partners don't realize they could do a lot better. They probably are overly focused on the tax deduction and don't realize this just means more cost ...
by dhodson
Tue Oct 14, 2014 2:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 850

Re: Offered Cash Balance Plan - RED FLAGS? (physician)

The main question is who pays for the plan. Does it come from her salary or this from the company in addition to her salary. Sounds like the former. If so then this isn't such a good deal for you bc of the huge fees associated with it. In general these plans are good for older folks who have fewer y...
by dhodson
Tue Oct 14, 2014 1:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 850

Re: old universal life insurance policy as fixed income

Well again you compare it to CDs. The vanguard total bond fund if I'm not mistaken has a 1 year of around 3.9%. Id sooner put my "bonds" in tax advantaged and stocks in taxable so I can tax loss harvest and use the better capital gains rates but that's me. I must not have been reading care...
by dhodson
Tue Oct 14, 2014 9:41 am
 
Forum: Investing - Help with Personal Investments
Topic: old universal life insurance policy as fixed income
Replies: 24
Views: 1530

Re: Long term care insurance sweet spot

You aren't going to find this kind of data. Multiple reasons but just a few are that the policies available today are different then in the past and pricing isn't stabilized. You always want coverage before your health changes (assuming you are going to purchase).
by dhodson
Mon Oct 13, 2014 2:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance sweet spot
Replies: 5
Views: 709

Re: advice on a surface pro 3

They are heavy as a tablet

I use mine 75% as a super powerful laptop and 25% as a tablet
by dhodson
Mon Oct 13, 2014 9:07 am
 
Forum: Personal Consumer Issues
Topic: advice on a surface pro 3
Replies: 28
Views: 2461

Re: advice on a surface pro 3

The pro 2 is pretty close but yes the 1 is inferior

If get a good deal on a 2 instead which is what I use
by dhodson
Sun Oct 12, 2014 4:59 pm
 
Forum: Personal Consumer Issues
Topic: advice on a surface pro 3
Replies: 28
Views: 2461

Re: old universal life insurance policy as fixed income

one thing i should add is that they cant change your health rating. If your health was to unfortunately take a serious turn for the worse then your policy will "perform" better. Your post indicates you think differently. In essence in those situations the insurance company made a bad bet. ...
by dhodson
Sun Oct 12, 2014 9:27 am
 
Forum: Investing - Help with Personal Investments
Topic: old universal life insurance policy as fixed income
Replies: 24
Views: 1530

Re: old universal life insurance policy as fixed income

I help my mother and my father-in-law with their portfolios, following BH principles. They both have whole life policies which have been in force for many years and which, like yours, make sense to keep rather than eliminate. In each case, we treat the whole life policy as part of their fixed incom...
by dhodson
Sun Oct 12, 2014 9:24 am
 
Forum: Investing - Help with Personal Investments
Topic: old universal life insurance policy as fixed income
Replies: 24
Views: 1530

Re: old universal life insurance policy as fixed income

I help my mother and my father-in-law with their portfolios, following BH principles. They both have whole life policies which have been in force for many years and which, like yours, make sense to keep rather than eliminate. In each case, we treat the whole life policy as part of their fixed incom...
by dhodson
Sat Oct 11, 2014 4:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: old universal life insurance policy as fixed income
Replies: 24
Views: 1530

Re: old universal life insurance policy as fixed income

while you are not the OP whom i was addressing, you have added in your own assumptions. First off glad you are happy with your purchase and i have no desire to convince you to be upset with it. You are however comparing this to CDs which are FDIC insured. Life insurance is not. They are not the same...
by dhodson
Sat Oct 11, 2014 12:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: old universal life insurance policy as fixed income
Replies: 24
Views: 1530

Re: old universal life insurance policy as fixed income

There is more "waste" within a permanent policy. Insurance costs are always taken out of either premium or cash value and the cost of insurance within permanent is MORE and you need to keep it in force until you die which means you will likely be paying insurance even when you don't need i...
by dhodson
Fri Oct 10, 2014 12:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: old universal life insurance policy as fixed income
Replies: 24
Views: 1530

Re: Long term care insurance in NYC for Arthritis?

Might want to search Moneyguard over at fatwallet.com finance forum

There was a really good post reviewing it

Bottom line is there isn't a free lunch here where you get great ltci in a situation where you already have a known health issue that would affect coverage.
by dhodson
Thu Oct 09, 2014 6:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance in NYC for Arthritis?
Replies: 10
Views: 801

Re: Just finished medical residency. Lots of general ?s

Hi everyone! This website is amazing and I'm looking forward to joining the community here. I just finished my residency in internal medicine a few months ago and have quite a few questions about how to manage my money. They say that the financial habits you start right after residency often stick ...
by dhodson
Tue Oct 07, 2014 1:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Just finished medical residency. Lots of general ?s
Replies: 14
Views: 1684

Re: Drop My $1m Life Insurance?

Paying monthly instead of yearly is more expensive.

If confirm that the rate is guaranteed until age 70.

If I were in good health and didn't have an insurance need then I'd cancel.

If my health has deteriorated then I'd weigh this bet differently.

I'm not in the insurance industry.
by dhodson
Sat Oct 04, 2014 6:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Drop My $1m Life Insurance?
Replies: 13
Views: 1737

Re: Age 30, should I buy 30 year term?

I think you need to be honest with yourself. Most of us have a very good idea if marriage is within a few years. If I really thought I would be then I'd lock in the term. You can cancel down the line as well if you were wrong. If I didn't have my eye on someone special (who felt similar), then I'd w...
by dhodson
Sat Oct 04, 2014 6:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Age 30, should I buy 30 year term?
Replies: 10
Views: 902

Re: Motley fool?

Like others have said, I too felt them to be useful a long time ago but not now. They have written multiple investment books with strategies which now only look good in their books. I find they hawk way too much garbage for me to visit the site any more and I don't find their forums useful either. I...
by dhodson
Fri Oct 03, 2014 9:30 am
 
Forum: Investing - Theory, News & General
Topic: Motley fool?
Replies: 16
Views: 1878

Re: Another whole-life review (NWM)

Unless this individual is willing to leave money to someone or something at eventual death then I'd definitely get rid of it


Also paying monthly has a finance charge which is heavy.
by dhodson
Thu Oct 02, 2014 10:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Another whole-life review (NWM)
Replies: 4
Views: 544

Re: Using a VUL to pay for college. Am I nuts?

Funny that you think that orgeon's fees and returns are bad compared to what you are currently in. typically it is still best to use oregon up to the state deduction limit then use a low cost one such as utah or ny or any with vanguard options. the returns will be better when comparing apples to app...
by dhodson
Wed Oct 01, 2014 8:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using a VUL to pay for college. Am I nuts?
Replies: 18
Views: 1321

Re: Long Term Care Insurance???

I recommend you use the search function and read the many threads on ltci.
by dhodson
Wed Oct 01, 2014 7:30 pm
 
Forum: Personal Consumer Issues
Topic: Long Term Care Insurance???
Replies: 3
Views: 487

Re: Using a VUL to pay for college. Am I nuts?

When you take a loan, the insurance company is offering you a loan using the policy's csv as collateral. You pay back the insurance company including the interest. You should search the posts here of the many many people who have used permanent insurance to pay for college only to get stuck later on...
by dhodson
Wed Oct 01, 2014 2:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using a VUL to pay for college. Am I nuts?
Replies: 18
Views: 1321

Re: Why Aren't Waterbeds Popular Anymore?

They aren't popular bc it was a fade

It may eventually fade back in but since there are tons of disadvantages, it may not happen for a while.
by dhodson
Tue Sep 30, 2014 8:02 pm
 
Forum: Personal Consumer Issues
Topic: Why Aren't Waterbeds Popular Anymore?
Replies: 13
Views: 1426

Re: How to solve people who don't save enough?

You can't solve behavior with an app.
by dhodson
Tue Sep 30, 2014 8:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to solve people who don't save enough?
Replies: 11
Views: 1243

Re: Answer to Most Physician/High Income Job Questions:

Normally umbrella does not

Which is also why it's so cheap
by dhodson
Sat Sep 27, 2014 3:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Answer to Most Physician/High Income Job Questions:
Replies: 31
Views: 2398

Re: Answer to Most Physician/High Net Worth Questions:

Sometimes i think we push the live like a resident idea too much. Definitely dont stretch yourself with expensive purchases but if you live too frugal, i personally believe you miss out on life. I also feel this leads to poor performance in the work environment eventually. Now if you stretch yoursel...
by dhodson
Sat Sep 27, 2014 10:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Answer to Most Physician/High Income Job Questions:
Replies: 31
Views: 2398

Re: Why do people buy annuities?

No but the payout is lower when you add those factors bc they can't pool the same mortality credits
by dhodson
Fri Sep 26, 2014 8:03 pm
 
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 50
Views: 3975

Re: headphones for running

The oakley thump pro series is what I use. They are discontinued but great for this.

Might find them on eBay.
by dhodson
Fri Sep 26, 2014 4:46 pm
 
Forum: Personal Consumer Issues
Topic: headphones for running
Replies: 40
Views: 1655

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

I wish I had never bought my LTHC policy through PERS about 18 years ago. There have been 2 or 3 premium increases. Now they are giving people a choice of almost doubling their premium or deleting the Built-in Inflation protection. I chose to delete the inflation protection and keep my rate about t...
by dhodson
Fri Sep 26, 2014 3:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 89
Views: 9156

Re: Defined Benefit Plan?

I also have one but the plans are costly. Even with Schwab its about 1.5 k per year and then when you close it down at retirement around 10k. Keep in mind you are just deferring taxes and if you have both a fully funded db plan and then 401k then you might not be dropping in tax bracket or rate in r...
by dhodson
Wed Sep 24, 2014 9:15 pm
 
Forum: Investing - Theory, News & General
Topic: Defined Benefit Plan?
Replies: 8
Views: 788

Re: Life Insurance - Indexed - Worth it?

Google unmet promises life insurance

And that was written by people in the industry
by dhodson
Wed Sep 24, 2014 6:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Life Insurance - Indexed - Worth it?
Replies: 12
Views: 647

Re: Defined Benefit Plan?

Christine_NM wrote:
dhodson wrote:If this is either a 412i or 412e plan then avoid.


More on 412e as sales tools:

http://www.producersweb.com/r/WEBP/d/co ... 80d9e2fe5d



Even better on why you avoid it

http://www.executivebenefitsgroup.com/images/EBGwp4.pdf
by dhodson
Wed Sep 24, 2014 3:02 pm
 
Forum: Investing - Theory, News & General
Topic: Defined Benefit Plan?
Replies: 8
Views: 788

Re: Defined Benefit Plan?

If this is either a 412i or 412e plan then avoid.
by dhodson
Wed Sep 24, 2014 2:17 pm
 
Forum: Investing - Theory, News & General
Topic: Defined Benefit Plan?
Replies: 8
Views: 788

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

The issue is more the tail (unlimited benefits) then the deductible.
by dhodson
Wed Sep 24, 2014 7:17 am
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 89
Views: 9156

Re: S&P 500 guarantee without the annuity

Actually what you have is something that will perform slightly better or slightly worse than bond performance with those products. Most of the ones I have seen give a guaranteed return that was the same as a long term bond. There is also a really good chance I didn't exactly do all the math right w...
by dhodson
Tue Sep 23, 2014 4:28 pm
 
Forum: Investing - Theory, News & General
Topic: S&P 500 guarantee without the annuity
Replies: 21
Views: 1882

Re: S&P 500 guarantee without the annuity

Every single one of the annuities I have seen cap the market gain. That cap is a huge part of why they can provide "insurance" against market losses. If it was possible to make a product that gave market returns and no risk of capital, we would all stick 100% of our investment money. The ...
by dhodson
Tue Sep 23, 2014 2:27 pm
 
Forum: Investing - Theory, News & General
Topic: S&P 500 guarantee without the annuity
Replies: 21
Views: 1882

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

I handled my bachelor Uncle's finances for the last 9 years while he was in a nursing home sans LTC insurance.....he passed in April of this year....how does 425k in expenses over a 9 year period sound. Do my wife and I have a policy......what do you think? With all sympathy for what must have been...
by dhodson
Mon Sep 22, 2014 1:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 89
Views: 9156

Re: Variable Annuity: add to it? why?

I don't think you are but some might argue the other insurance features such as asset protection
by dhodson
Mon Sep 22, 2014 1:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity: add to it? why?
Replies: 13
Views: 590

Re: Cancel NWM's supp disability income policies?

One more thing I forgot to mention. When we were going through the process of deciding whether or not I should purchase the Term 80 product or just Level Term, our NWM guy kept stating that he gets paid more if I purchase the level Term policy instead of the Term 80 product; and he was using this a...
by dhodson
Mon Sep 22, 2014 11:31 am
 
Forum: Personal Finance (Not Investing)
Topic: Cancel NWM's supp disability income policies?
Replies: 3
Views: 181

Re: Are SPIA's fairly priced? - A quick and dirty analysis

well IF they need it at 65 then you still NEED it. They take the risk of unlucky sequence of events if they continue to invest their small savings. I do agree that if they are planning on buying it later on then its a different situation. Your health might have changed and maybe you no longer need i...
by dhodson
Sun Sep 21, 2014 1:00 pm
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3631

Re: Are SPIA's fairly priced? - A quick and dirty analysis

Longevity is unknown, and this is what drives the "cost" of either. And, in either case "this cost" is higher if we get hit by the probervial truck at an early age. The opposite is also true. There, I ran the numbers. :) IMO, you've completely missed the point of this thread. As...
by dhodson
Sun Sep 21, 2014 9:22 am
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3631

Re: Variable Annuity: add to it? why?

Well if no favorable schedule then I'd only add if the difference between basis and current value is so large that it would take an eon to get back to basis. Otherwise I'd just use it for my tax inefficient assets assuming that I'm also investing within a taxable.
by dhodson
Sat Sep 20, 2014 7:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity: add to it? why?
Replies: 13
Views: 590

Re: Variable Annuity: add to it? why?

Is there some favorable annuitization schedule with this annuity? If not then why do you think there is an advantage over just buying a SPIA later on if necessary or desired?
by dhodson
Sat Sep 20, 2014 7:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity: add to it? why?
Replies: 13
Views: 590

Re: Variable Annuity: add to it? why?

why not just surrender this thing once you get back to your cost basis. That way there wont be any penalties or taxes.
by dhodson
Sat Sep 20, 2014 6:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity: add to it? why?
Replies: 13
Views: 590

Re: Are SPIA's fairly priced? - A quick and dirty analysis

What seems to happen though is they spin off the bad assets to insulate the company in my view.
by dhodson
Sat Sep 20, 2014 11:02 am
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3631

Re: Are SPIA's fairly priced? - A quick and dirty analysis

The OP's analysis fails in the most fundamental aspect: he has converted a problem with a crucial unknown, actual individual lifespan, into a problem that ignores this aspect completely, a fixed period annuity or mortgage. If we actually knew how long we will live, then financial planning would be ...
by dhodson
Sat Sep 20, 2014 8:46 am
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3631
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