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Re: PCRA Question

I use a PCRA through Schwab for my 401k. I love using it, and my company charges no administrative or custodial fees for it. I use the Schwab ETFs, which have lower ERs than pretty much anything else out there. In addition, these are commission free. Great option for me, and much better than the 401...
by finanplan
Wed Aug 07, 2013 7:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: PCRA Question [Schwab Personal Choice Retirement Account]
Replies: 9
Views: 571

Re: Portfolio Review Request - Headed down the right path?

Well, I've put the recommended changes into effect, and, good god, what the heck was I doing before! So much easier to manage and track. I also changed my equities to bond ratio to 85:15 in the 401k and Roth IRA accounts. Given my whole life cash value (and bond-like returns), I feel my actual AA is...
by finanplan
Wed Aug 07, 2013 7:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - Headed down the right path?
Replies: 10
Views: 1369

Re: Portfolio Review Request - Headed down the right path?

Pingo, that is awesome. Many thanks to you!

We've made the changes to her 401k and will be making the others shortly.

Any thoughts on how to treat my Cash Surrender Value for my whole life in my AA? Given historical bond-like returns, is using them as bond space in my AA appropriate?
by finanplan
Wed Jul 24, 2013 8:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - Headed down the right path?
Replies: 10
Views: 1369

Re: Portfolio Review Request - Headed down the right path?

Thanks for the reply! Comments/responses inline below. Define pretty bad? I guess I'll assume that every single fund is more expensive than 1% since you appear to be willing to use such funds in Her 401k? Is there an additional account fee for using the PCRA? How much? Pretty bad in that the only fu...
by finanplan
Mon Jul 22, 2013 8:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - Headed down the right path?
Replies: 10
Views: 1369

Re: Portfolio Review Request - Headed down the right path?

Shameless bump :happy

Especially interested in the CSV of whole life impacting my AA.
by finanplan
Sun Jul 21, 2013 9:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - Headed down the right path?
Replies: 10
Views: 1369

Re: Portfolio Review Request - Headed down the right path?

It looks to me like you're trying to replicate the allocation in each account. This is usually not the optimal strategy. It leads to inefficiencies and complexity that brings no value. For example, her 401(k) is a mix of good ER and bad. Why hold these: 0.35% LAZARD EMERGING MARKETS I (LZEMX) (1.10...
by finanplan
Sun Jul 21, 2013 3:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - Headed down the right path?
Replies: 10
Views: 1369

Portfolio Review Request - Headed down the right path?

Just wanting a sanity check on our plan. Although we've always saved "some" for retirement, we've rapidly accelerated debt paydown and savings over the last two years ($45k in debt paydown last year, cleared student loans/etc.). We have a brief IPS defined, which is basically just an asset...
by finanplan
Sun Jul 21, 2013 11:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - Headed down the right path?
Replies: 10
Views: 1369

Re: Whole Life Surrender & Pay Down Debt?

you are the right course in my view. you understand it was a mistake to purchase but need to make the most of the situation. you should ask for in force illustrations yearly (which they must provide if you request) to track your progress. dont fall for any sales pitches though I'd love to surrender...
by finanplan
Fri Feb 08, 2013 9:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Portfolio is 100% tax advantaged. By going with a surrender, about 12k, roughly, would be taxed as income. I agree, that this product is not desirable for me, but at this point I'm going to stay the course and let the dividends pay the premiums. I find this be a frustrating outcome, but it is what i...
by finanplan
Fri Feb 08, 2013 8:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Perhaps my plan is rather simplistic. Saving the max in mine and wife's 401k and maxing our Roth space yearly (41k space), and investing in low cost index funds according to my asset allocation plan (80% equities, 30% of which is international, 20% bond, using Schwab ETFs available in Roth and prima...
by finanplan
Sat Feb 02, 2013 7:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Also, I don't understand most of what you are speaking about. Save early, save often, and look to minimize compounding fees makes sense to me. I'm not the brightest guy investment-wise, but I can appreciate a simplistic, broad approach and feel comfortable as I understand it (and lack the time to ac...
by finanplan
Sat Feb 02, 2013 4:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

By the way, just to be super clear here, Term insurance and Permanent products are both good products in my book. I'm not going to be "that guy" who tells you to only own one, because they both have appropriate uses. What, exactly , are the appropriate uses for whole life insurance for &q...
by finanplan
Sat Feb 02, 2013 4:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

By the way, just to be super clear here, Term insurance and Permanent products are both good products in my book. I'm not going to be "that guy" who tells you to only own one, because they both have appropriate uses. What, exactly , are the appropriate uses for whole life insurance for &q...
by finanplan
Sat Feb 02, 2013 4:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Agreed. Cheap term and self insuring is the way for me. These policies weren't my purchase choice. They are very confusing indeed,and go against my rule of not investing unless I have understanding of the product.
by finanplan
Sat Feb 02, 2013 1:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Thanks to all for the considerate replies, this has been helpful. Like most things finance-wise, I'm going to "stay the course" by continuing to pay down the $30k mortgage. We are going to free up some cash flow, and will hopefully pull in the payoff date to early 2013.
by finanplan
Sat Feb 02, 2013 12:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Keep those whole life policies. Never buy new whole life as an investment, but policies as old as yours are a good investment in today's market. Up-front sales loads have long since been paid and your total effecitive rate of return (as a living investment) is between 5% and 8%. I recommend not tak...
by finanplan
Thu Jan 31, 2013 7:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

One more thought, once you get the second mortage paid off you will be getting close to the 20% equity mark that would allow you to refinance get the best mortage rates. It might worth focusing on that even if it meant cutting back some on some of your retirment savings for a year or two. Based on ...
by finanplan
Thu Jan 31, 2013 1:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

To cut to the chase, I'm looking at three options. If you have paid off cars that are worth a fair amount then I would add a fourth option. This would be to get car loans at a much lower interest rate and use that money to pay the second mortage off or at least pay it down. PenFed has them as low a...
by finanplan
Thu Jan 31, 2013 1:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Thanks all. I'll post an update after I receive the IF Illustrations. As far as mortgage payoff is concerned, I'm likely on an 17 month timetable for the 10% @ $30k, starting March 2013. In addition, adding $500k of term will cost ~$300/year versus my current policy. I'll likely consider doing this ...
by finanplan
Thu Jan 31, 2013 11:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Term isn't with NWM, luckily. Thanks, I'll ask for both of those illustrations.
by finanplan
Wed Jan 30, 2013 9:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Thanks for the insight regarding tax rates. Income is less desirable, obviously. I don't currently have plans to leave behind wealth, though I can't say how I will feel in many years. At present, I feel it best for one to make their way in life. Dividends were used for PUAs for many years, until 1.5...
by finanplan
Wed Jan 30, 2013 9:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Re: Whole Life Surrender & Pay Down Debt?

Forgot to add, but I will be discussing with my agent any tax implications of surrendering. I believe that part of this MAY be taxable (I.e. more cash value than premiums paid), but I'm not sure at this point. I believe the taxable portion, if any, will be small enough so as to not impact my decision.
by finanplan
Wed Jan 30, 2013 7:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

Whole Life Surrender & Pay Down Debt?

Hello all, After being "loose" :oops: with my finances for six or so years, my wife and I have been on a mission to pay down debt and build our portfolio. In calendar 2012, we paid down a bit less than $40k in debt principal (student loans, small credit debt, car, etc.). We are 30/28 years...
by finanplan
Wed Jan 30, 2013 12:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Surrender & Pay Down Debt?
Replies: 57
Views: 3136

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