Search found 3986 matches

by dhodson
Thu Aug 27, 2015 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Term Insurance
Replies: 13
Views: 546

Re: Term Insurance

Any of the A rated are fine

Don't over think it

You will not be able to predict future service

Fortunately with term there is almost no service required and paying a claim is a straight forward process.
by dhodson
Sun Aug 23, 2015 10:55 am
Forum: Personal Consumer Issues
Topic: Buy warranty for Microsoft Surface?
Replies: 10
Views: 722

Re: Buy warranty for Microsoft Surface?

In general warranties aren't worth it

Square trade is one of the cheaper/better companies

I didn't insure my SP2.
by dhodson
Thu Aug 20, 2015 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Life Insurance and Investing Advice for Grandmother to Grandchild
Replies: 6
Views: 477

Re: Life Insurance and Investing Advice for Grandmother to Grandchild

Make sure you read the threads of people who used WL on a child, tried to use it to pay for college and now have an imploding policy.

Better depends on goals
by dhodson
Wed Aug 19, 2015 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Is a DCP always a retirement plan? Question on profit sharing
Replies: 3
Views: 157

Re: Is a DCP always a retirement plan? Question on profit sharing

It's a defined contribution plan like 401k.

There could be a vesting schedule.
by dhodson
Mon Aug 17, 2015 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2224

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

Just give money to your kids while you are alive. Much better method. You can thus get some joy out of what you are doing and help guide as opposed to hoping you can rule from the grave.
by dhodson
Sun Aug 16, 2015 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2224

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

Bsteiner - thank you for the detailed responses and for sharing a wealth of wisdom. Lots of information for me to digest. Will read and re-read your above responses to really understand as much as I can. If I am understanding correctly, the insurance trust will only come in to play assuming a death...
by dhodson
Sat Aug 15, 2015 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2224

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

Considering financially either would be fine if only one were to die, I'd consider this excessive.

Ilit is only for insurance products, a specific irrevocable trust.
by dhodson
Sat Aug 15, 2015 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Accounting for Cash Balance Plan in asset allocation?
Replies: 14
Views: 923

Re: Accounting for Cash Balance Plan in asset allocation?

If you count them as bonds then you will have a higher percentage of stocks in your other accounts then you might otherwise. I think you need to decide why you own bonds. Id own bonds primarily for the ability to re-balance. Other people own them for different reasons. Im personally not too worried ...
by dhodson
Thu Aug 13, 2015 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Overfunded (?) Coverdell / 529
Replies: 3
Views: 316

Re: Overfunded (?) Coverdell / 529

I'm not seeing 95k as over funded

Seems like a good amount just not excessive
by dhodson
Tue Aug 11, 2015 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life- How Much To Get and For How Many Years?
Replies: 29
Views: 2538

Re: Term Life- How Much To Get and For How Many Years?

Not exactly but I agree an independent agent can be helpful The thing is many of these agents will try to steer you towards a particular company or even worse try to sucker you into other insurance products such as permanent life insurance. In that way, it isn't "free" to deal with them (s...
by dhodson
Tue Aug 11, 2015 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life- How Much To Get and For How Many Years?
Replies: 29
Views: 2538

Re: Term Life- How Much To Get and For How Many Years?

There is no discount going direct. The cost is the same.
by dhodson
Tue Aug 11, 2015 7:48 am
Forum: Personal Finance (Not Investing)
Topic: Term Life- How Much To Get and For How Many Years?
Replies: 29
Views: 2538

Re: Term Life- How Much To Get and For How Many Years?

Life Insurance needs tend to fall off a cliff at a certain age - usually close to retirement when any children are grown and on their own. Most term policies can be made permanent and/or you can often lower the face amount and related premium. Usually, you need the most protection when your childre...
by dhodson
Sun Aug 09, 2015 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life- How Much To Get and For How Many Years?
Replies: 29
Views: 2538

Re: Term Life- How Much To Get and For How Many Years?

Get 20 or 30 years. He/she is giving you self serving advice for a 10 year. You might become uninsurable during that time. Laddering is fine but I don't feel is necessary since inflation erodes the buying power of the death benefit and buying 2 polices is more expensive then one.
by dhodson
Sun Aug 09, 2015 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Life Settlements : Pacific West Capital Group
Replies: 5
Views: 1450

Re: Life Settlements : Pacific West Capital Group

Exactly why one avoids these. I bet they also take a cut from the additional capital you will need to supply.
by dhodson
Sun Aug 09, 2015 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Giving Financial Advisor Benefit of Doubt or Pull the Plug
Replies: 26
Views: 2747

Re: Giving Financial Advisor Benefit of Doubt or Pull the Plug

You actually already know what kind of advice you will be receiving from this individual in the future. Why would you continue it?
by dhodson
Sun Aug 09, 2015 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Aflac Insurance [Employee benefit review]
Replies: 9
Views: 826

Re: Aflac Insurance

There is a reason these are cheap per month


Besides the usual term life insurance and health insurance, a personal disability insurance can be valuable but expensive.

The polices you mentioned in my view are mostly gimmicks.
by dhodson
Sat Aug 08, 2015 11:08 am
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

that varies by state. some states its x dollars in total for whatever number of annuities you have. one should also keep in mind there is data on this. I cant recall who posted the link but WHEN insurance companies go under (meaning they are typically fairly safe but it still does happen), the state...
by dhodson
Sat Aug 08, 2015 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Minn Life VAL Policy
Replies: 9
Views: 404

Re: Minn Life VAL Policy

one option is to do a 1035 exchange (so dont surrender directly) to a vanguard or other low cost VA. This way the cost basis is retained. What you do is keep the VA until back to even on previous premiums paid (insurance company can tell you the cost basis) and then surrender back that VA. This way ...
by dhodson
Fri Aug 07, 2015 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Minn Life VAL Policy
Replies: 9
Views: 404

Re: Minn Life VAL Policy

Surrender charges usually decrease on policy anniversary date. Might want to ask when that is and what new values will be. Can request an inforce illustration to see how policy might perform under current assumptions but yea likely u don't want to keep feeding this.
by dhodson
Fri Aug 07, 2015 9:46 am
Forum: Personal Finance (Not Investing)
Topic: General Finance Strategies for Upper Middle Class
Replies: 33
Views: 5181

Re: General Finance Strategies for Upper Middle Class

There are no secrets for any of these sub groups just people who want to separate you from your money making you think there are.
by dhodson
Thu Aug 06, 2015 1:34 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

Glad u are happy with your purchase and I mean that. I purchase Girl Scout cookies. I usually throw them away 6 months later. They are a bad financial decision but I like doing it. You have reasons to help a friend which is fine but you don't have a good case why someone should purchase WL as an inv...
by dhodson
Thu Aug 06, 2015 1:19 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

I did read it but that's why I don't need to compare it to fixed. If i can't rebalance it then much better to go equities since very long time horizon. My reading is just fine....
by dhodson
Thu Aug 06, 2015 1:15 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

You are wrong about estate taxes. This is why ILITs exist. So yes I have checked my facts. In case u don't know, I unfortunately purchased a 2 million WL policy.
by dhodson
Thu Aug 06, 2015 12:23 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

No since I hold bonds to rebalance. I can't rebalance my whole life. No again. Whole life is subject to estate taxes. Anything in an irrevocable trust isn't. You like to assume changes to tax rates but not for whole life. How convenient. If I was general public and saw the dollars of permanent death...
by dhodson
Thu Aug 06, 2015 12:01 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

rca1824 You recently started a thread like this: Historical backtesting shows that portfolios of stocks + treasuries have better risk-adjusted returns than stocks + corporates + treasuries (i.e. TBM). Question: So why hold corporates? Since the data speaks it against it, is there a theoretical reas...
by dhodson
Thu Aug 06, 2015 11:59 am
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

Permanent insurance has been around for over 100 years and yet there is no real objective data to support its return being higher including tax angle then other fixed when compared properly. It's bonds minus. The mutuals frankly spend the most on advertising. You can't watch sports without seeing th...
by dhodson
Thu Aug 06, 2015 9:55 am
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

The best performing permanent insurance isn't always from a mutual so that may sound good but still doesn't guarantee anything. if one platform was actually superior, the others would go out of business.
by dhodson
Thu Aug 06, 2015 9:25 am
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

Taxes on insurance can also change just as easily and they don't have to grandfather. Dying at age 70 would be premature to health rating so return is going to very likely be lower. I'd guess 5.4% for a better guess but depends on time of death and dividends. They don't use lapses from other product...
by dhodson
Thu Aug 06, 2015 8:30 am
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

The guaranteed column doesn't. Dividends continue to fall..... It also depends on the company. Mine just raised its dividend from 6% to 6.2% this year. Either way, it's got a lot of room to fall to still beat a 30 year bond. And the tax-free aspect is appealing also since I (1) aim to be in a very ...
by dhodson
Thu Aug 06, 2015 7:55 am
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

What is the benefit of laddering versus buying a single annuity? One reason not to buy a single annuity is to diversify your risk of default accross multiple companies. You can also benefit by purchasing several smaller annuities that each are less than the maximum amount insured by the state where...
by dhodson
Wed Aug 05, 2015 3:16 pm
Forum: Personal Consumer Issues
Topic: Home security system and land line
Replies: 15
Views: 1104

Re: Home security system and land line

All companies now have cellular option for more. They just put a mini antenna to the alarm controlbox
by dhodson
Wed Aug 05, 2015 9:56 am
Forum: Personal Consumer Issues
Topic: Comcast wants me to buy a new modem (I think)
Replies: 53
Views: 2599

Re: Comcast wants me to buy a new modem (I think)

I have the 6141 and recommend purchasing it

Usually cheapest off eBay or a site like newegg
by dhodson
Wed Aug 05, 2015 6:14 am
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

I'm not sure it's accurate to say interest rates don't matter. If interest rates remain low for very long periods of time, this could affect the safety of the annuity. The company primarily invests in bonds and must make a profit. Besides liquidity, you can't rebalance with insurance products. Maybe...
by dhodson
Tue Aug 04, 2015 11:03 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

It's never irrelevant. Similar problems crop up all the time with all other fields. As pointed out, the assumptions favor certain conclusions.
by dhodson
Tue Aug 04, 2015 10:29 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

tludwig23 wrote:I don't trust the conclusions of any paper, white or otherwise, where the author is paid by someone with a vested interest in the paper's conclusion.


I'm in the same boat. I used to feel differently about his work but no more.
by dhodson
Tue Aug 04, 2015 10:18 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 119
Views: 10651

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

Only items like lifetime SPIAs allow mortality credits/risk pooling. Many "income" annuities or income riders don't have that.
by dhodson
Tue Aug 04, 2015 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Is Indexed Universal Life Insurance Best Legacy?
Replies: 36
Views: 1891

Re: Is Indexed Universal Life Insurance Best Legacy?

You mean short term. No. It isn't smart to. It isn't smart to buy permanent life insurance(I did make that mistake once) Since you have to keep life insurance till death, market will way out perform. And I don't need a loan to access it and I get a step up in basis at death. Look at dividends for WL...
by dhodson
Tue Aug 04, 2015 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Finding good Term-Insurance Policy ... need to sign tomorrow. Who do I trust? Plz Help
Replies: 23
Views: 1165

Re: Finding good Term-Insurance Policy ... need to sign tomorrow. Who do I trust? Plz Help

It is cheaper to pay yearly instead of monthly.

It's going to take weeks and a small medical exam to get an actual policy at a good rate.
by dhodson
Tue Aug 04, 2015 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Is Indexed Universal Life Insurance Best Legacy?
Replies: 36
Views: 1891

Re: Is Indexed Universal Life Insurance Best Legacy?

An agents book....

Gains are taxed at income rates if surrendered. Over 80% surrender or lapse their policy.

All loans in this country are tax free......


You can also divide everything else just as easily.
by dhodson
Tue Aug 04, 2015 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Buying a variable Annuity
Replies: 22
Views: 1309

Re: Buying a variable Annuity

Thank you for the replies. When I pass if I could pass it to my heirs as a life insurance policy the heirs would avoid the income tax. I am not sure if there is an annuity that while I am alive I take the required distributions pay the taxes but then when I pass it becomes a life insurance. You don...
by dhodson
Tue Aug 04, 2015 5:37 am
Forum: Investing - Help with Personal Investments
Topic: Buying a variable Annuity
Replies: 22
Views: 1309

Re: Buying a variable Annuity

kenner wrote:Settlement proceeds (alimony) from retirement accounts in a dissolution of marriage action, where the money was previously not taxed.


Roll it into your own 401k or ira
by dhodson
Mon Aug 03, 2015 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Buying a variable Annuity
Replies: 22
Views: 1309

Re: Buying a variable Annuity

The only one I can think of is IF you were already in another insurance product outside of a tax protected account. A 1035 exchange could delay taxes.
by dhodson
Mon Aug 03, 2015 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Genworth Insurance Ratings
Replies: 11
Views: 668

Re: Genworth Insurance Ratings

That assumes you remain insurable. Not sure I can buy into the minimizing part.
by dhodson
Mon Aug 03, 2015 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: Buying a variable Annuity
Replies: 22
Views: 1309

Re: Buying a variable Annuity

If the money is within a tax advantaged account then that' doesn't change anything If it's in taxable, then still there is very tax efficient investing. Either way you don't create a big taxable event. Even with reduction in tax rate if later in a lower, it still isn't necessarily lower than capital...
by dhodson
Mon Aug 03, 2015 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Buying a variable Annuity
Replies: 22
Views: 1309

Re: Buying a variable Annuity

Rarely Just talking VAs and not additional riders such as income or downside protection (which also aren't good deals) then there is no reason to purchase within a tax protected account. In taxable, it is very rare since you change capital gains into income rates, always pay higher fees for same inv...
by dhodson
Mon Aug 03, 2015 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Genworth Insurance Ratings
Replies: 11
Views: 668

Re: Genworth Insurance Ratings

Ratings are just like for all other companies.
It's a statement of their current financial strength based on another company's opinion.
by dhodson
Mon Aug 03, 2015 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance
Replies: 2
Views: 221

Re: Term Life Insurance

The adversion is typically based on the false idea that you can get it cheaper direct and the very real possibility of being suckered into something other than term. Still an independent agent is still the best way to go. Look at a site like term4sale and if your agent isn't getting u rates close to...
by dhodson
Mon Aug 03, 2015 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Genworth Insurance Ratings
Replies: 11
Views: 668

Re: Genworth Insurance Ratings

It's real hard for anyone to know. Ratings aren't that great at predicting future. I'd personally be most concerned with LTCi from them but that's just me.

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