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Re: SS Strategy Metric

Yes, people claim an 8% "return" for waiting. But how can one calculate "total return" in the first place, because the return is dependent on your age of death? I think people are just being imprecise with their words as a shorthand. A better way to phrase this might be "wa...
by lawman3966
Wed Apr 16, 2014 4:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Strategy Metric
Replies: 16
Views: 565

Re: SS Strategy Metric

I have reproduced below a prior post that I believe addresses this subject in detail. I wanted to take a moment to address a pet peeve of mine. The commonly touted 8% annual return for delaying SS benefits is misleading. The number is off based on at least two factors. The first error is one of basi...
by lawman3966
Wed Apr 16, 2014 2:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Strategy Metric
Replies: 16
Views: 565

Reflections on RYOCX [Rydex Series Trust Nasdaq-100 Index]

Upon reviewing my brokerage statement, I was struck to see that about 98% of my capital gains distributions for 2013 came from one fund that represents about 10% of my stock holdings, that fund being RYOCX. My ownership of this fund stems from being a follower of Bob Brinker in the early 2000s. Brin...
by lawman3966
Fri Apr 11, 2014 11:53 am
 
Forum: Investing - Theory, News & General
Topic: Reflections on RYOCX [Rydex Series Trust Nasdaq-100 Index]
Replies: 2
Views: 225

Money available for 2013 Roth IRA Contribution

I've searched the forum and online but haven't found a definitive answer to the following. Hypothetical Fact Pattern (all data relating to tax year 2013) Gross W2 income: 8.5K 401K contribution: 5K employee/investor is over 50. Total 2013 income will not exceed 110K or whatever the Roth eligibility ...
by lawman3966
Sun Apr 06, 2014 3:07 pm
 
Forum: Investing - Theory, News & General
Topic: Money available for 2013 Roth IRA Contribution
Replies: 4
Views: 263

Re: Laid off today... TODO list?

One little cost-saving reminder:

If you'll be driving less now, remember to call your auto insurance company and see if your rates will decline based on the reduced mileage.
by lawman3966
Thu Apr 03, 2014 12:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Laid off today... TODO list?
Replies: 97
Views: 9367

Re: Were These Investment Advisors Lying or Incompetent?

I haven't figured out if the reason the one guy is pushing this particular advisor is because of ego (and he already has his own money invested with this guy), or if there's something even more under-handed going on. Now, you're getting warm. A few years ago, I assumed that our former employer's hi...
by lawman3966
Thu Mar 27, 2014 11:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Were These Investment Advisors Lying or Incompetent?
Replies: 90
Views: 5867

Re: Were These Investment Advisors Lying or Incompetent?

I sit on the Board of my synagogue. Here is my question: They claim that the actual ERs will be lower than what was listed in the disclosure statement, yet I always thought that the ER represents the operating costs of a mutual fund, and has nothing to do with who is actually selling that fund. I u...
by lawman3966
Thu Mar 27, 2014 12:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Were These Investment Advisors Lying or Incompetent?
Replies: 90
Views: 5867

Re: Load-Waived A-Share Funds Better Than Indexing?

I really appreciate the thoughtful responses. To be honest I think this family advisor is already making quite a bit of money managing investments for some of my other family members. He knows I'm cost conscious, and I think he is just trying to get my business... Again though, most of the comparis...
by lawman3966
Wed Mar 26, 2014 12:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Load-Waived A-Share Funds Better Than Indexing?
Replies: 30
Views: 1145

Total vs. Real

Jack just said on 3/10/14 on cnbc: "And corporate America is likely to grow roughly as fast as nominal GNP—about 5 percent—and dividend yields will hover around 2 percent. Together, that should bring a return of about 7 percent over the long term, which should double an investor's money (befor...
by lawman3966
Wed Mar 12, 2014 10:31 pm
 
Forum: Investing - Theory, News & General
Topic: 10 year forecast for SP500
Replies: 23
Views: 2168

How to convince family & friends to use Boglehead Method?

I think a plot of the extra 1% or so paid in fees compounded over 40 years is an effective visual aid. I've tried this a few times in the past and it's actually never convinced a single person. The response I've gotten every single time was "I don't have the time and/or knowledge to manage it ...
by lawman3966
Sat Feb 22, 2014 5:24 pm
 
Forum: Investing - Theory, News & General
Topic: How to convince family & friends to use Boglehead Method?
Replies: 61
Views: 4199

Re: Economist covers Bogle's Arithmetic

The hidden costs of trusting most "investment advisors" are appalling. Not only do they rake off at least .5% annually as a fee, but they put clients into funds with higher management expenses and trading costs. This is all hidden from their naive clients. Couldn't pass this one up. They ...
by lawman3966
Sat Feb 22, 2014 2:25 am
 
Forum: Investing - Theory, News & General
Topic: Economist covers Bogle's Arithmetic
Replies: 13
Views: 1775

Re: Issues with small employer 401K

4) Is there a niche market where financial advisors would accept a 1-time fee for assisting with plan design? He would want to avoid a situation where an "advisor" steers them into certain funds and ends up with a kickback in perpetuity from the fund company for the referral, which merely...
by lawman3966
Wed Feb 19, 2014 1:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Issues with small employer 401K
Replies: 27
Views: 1829

Re: Why bad/expensive 401(k)s will likely always be with us

A few observations. Someone made the "college buddy" remark to me about a plan at a former employer and I was very skeptical. And, as in your case, I eventually confirmed that our advisor was in fact on the "buddy system." The boss's decisions are not necessarily motivated by ign...
by lawman3966
Tue Feb 18, 2014 1:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Why bad/expensive 401(k)s will likely always be with us
Replies: 116
Views: 7584

Re: Possible Involuntary Retirement

If you live on $50K a year income, to cover taxes and healthcare, then you would only spend $800K of your $1.1 million in the 16 years until you are 70. (16*$50K = $800K). Of course if your investments earn more than inflation then you would have more than $300K ($1.1 million -$800K) left when you ...
by lawman3966
Sun Feb 16, 2014 2:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Possible Involuntary Retirement
Replies: 14
Views: 1643

Re: Possible Involuntary Retirement

I have to ask since its not clear from your post and you are telling us the cost of living there is "reported on websites" to be between $1000 and $3000 per month -- have you actually been to Cebu, Manila, or other cities in the Philippines? Some people will be quite happy there -- others...
by lawman3966
Sun Feb 16, 2014 1:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Possible Involuntary Retirement
Replies: 14
Views: 1643

Possible Involuntary Retirement

I am being required to look for another job with (of course) no guarantee that I'll find one. I will do my best, but wanted to run some numbers past the crew here to see where I'd stand if I did "call it a career" in the near future. The Data: Age: 54 Single. Liquid net worth: $ 1.1 Millio...
by lawman3966
Sun Feb 16, 2014 2:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Possible Involuntary Retirement
Replies: 14
Views: 1643

Re: Layed off and now retiring. Need advice...

Age 54-60 Need approx: $216,000 ($36K x 6) Pension: $77,000 $24,000 annual withdrawal from taxable account x 6 years = $144,000 Age 60-70 Need approx: $360,000 ($36K x10) Pension: $128,400 $24,000 annual withdrawal from 401K x 10 years = $240,000 (Plus $36,000 income tax): $276,000 Age 70 -100! Pen...
by lawman3966
Sat Feb 15, 2014 2:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Layed off and now retiring. Need advice...
Replies: 65
Views: 7313

Re: I think rolling over 401ks to IRAs is often a bad decisi

There are some advantages to having money in a 401K instead of an IRA, but the backdoor Roth is not the first one that springs to mind for me. Superior creditor protection for 401Ks in states that have little or no protection for IRAs is the strongest reason to keep the 401K that I know of. In my ca...
by lawman3966
Thu Feb 13, 2014 5:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: I think rolling over 401ks to IRAs is often a bad decision
Replies: 56
Views: 4893

Re: Transitioning when one hits "the number"

Not to rain on anyone's parade, but unless you have an inflation-indexed defined-benefit pension, how can you know what your "number" is? Let's assume that we are defining "the number" as being a lump sum in current dollars considered to be sufficient to fund all expenses from th...
by lawman3966
Wed Feb 12, 2014 6:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Transitioning when one hits "the number"
Replies: 72
Views: 5106

Re: Jim Cramer thinks I'm an Idiot

Go look at what I've accomplished and what our viewers have accomplished. Stop insulting them with your nonsense and shut up." [/i] I'd love nothing more than to see what his "viewers have accomplished". Since he appears to present no data to bolster the implication that they've done...
by lawman3966
Wed Feb 12, 2014 1:51 pm
 
Forum: Investing - Theory, News & General
Topic: Jim Cramer thinks I'm an Idiot
Replies: 19
Views: 2081

Re: Retire by 55?

. . . I like your plan b--being a landlord--but would be afraid I couldn't swing it financially (ie qualify for a mortgag on whatever my income would be at that time), but if I could, I think it would be a very smart way to go. I have some indirect experience here. Though not a student, I currently...
by lawman3966
Mon Feb 10, 2014 12:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Retire by 55?
Replies: 41
Views: 5091

Re: Retire by 55?

I haven't come up with a final answer, but have identified some additional information that would be helpful here: 1) What are your future social security benefits? 2) How do you intend to pay for health care? I suspect many here will be inclined to say that your assets are on the light side to reti...
by lawman3966
Sun Feb 09, 2014 12:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Retire by 55?
Replies: 41
Views: 5091

Re: Snow Bird Question [State Residency Requirements]

Depending on your current state of domicile/residence, it could be dangerous to operate on the six-month rule. I looked into this in some detail for my state of New Jersey, with the goal of learning what it would take to avoid paying NJ state income tax upon retiring overseas. The rules are more com...
by lawman3966
Sun Feb 02, 2014 1:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Snow Bird Question [State Residency Requirements]
Replies: 39
Views: 2510

Re: Why do billionaires use active managers? Any that don't?

I have an acquaintance, who though not a billionaire, is a serial entrepreneur whose wealth hovers at the 9-figure level. He refuses to invest even $1 in stock, instead placing all his money in treasuries (likely a mix of TIPS and non-indexed bonds). He made his money in industries that he knows the...
by lawman3966
Fri Jan 31, 2014 11:14 pm
 
Forum: Investing - Theory, News & General
Topic: Why do billionaires use active managers? Any that don't?
Replies: 28
Views: 3372

Re: Deferred Annuities: Inflation During Deferral Period

Bump.
(Giving this post one last chance during prime time).
by lawman3966
Wed Jan 29, 2014 11:50 am
 
Forum: Investing - Theory, News & General
Topic: Deferred Annuities: Inflation During Deferral Period
Replies: 1
Views: 198

Deferred Annuities: Inflation During Deferral Period

I ran some calculations on VG's annuity page and was initially pleased at the payout for CPI-indexed deferred annuities as a proportion of each dollar invested today. I was interested in payouts starting in about 16 years when I hit 70. With CPI adjustment, one only needed to invest $8 today for eac...
by lawman3966
Wed Jan 29, 2014 2:07 am
 
Forum: Investing - Theory, News & General
Topic: Deferred Annuities: Inflation During Deferral Period
Replies: 1
Views: 198

Re: Current tips for buying a Used car

I have (believe it or not) had good success buying through Ebay from local sellers with a 100% feedback rating and maxing out bids at $300 below KBB value Have you used any of the mobile auto inspection services when buying in this way? If so, did the inspections prove to accurate? At first glance,...
by lawman3966
Tue Jan 28, 2014 2:47 am
 
Forum: Personal Consumer Issues
Topic: Current tips for buying a Used car
Replies: 14
Views: 1267

Re: Annuities panned in Forbes

While I can't speak for other SPIA's, our contract does not specify a fee, either for purchase or ongoing maintenance. When I asked FIDO's insurance representative (yes, they are licensed just as any other agent) where "their cut" came from, he simply commented that they would work the sp...
by lawman3966
Mon Jan 27, 2014 1:40 pm
 
Forum: Investing - Theory, News & General
Topic: Annuities panned in Forbes
Replies: 11
Views: 1058

Re: Annuities panned in Forbes

Regarding (2): the article gives an example of a quote for an inflation-indexed SPIA so it is clearly not arguing that they are rare, just less common (and, implicitly, expensive for the amount of income), which I think is accurate.. I confess to having missed the sentence providing a quote for a p...
by lawman3966
Mon Jan 27, 2014 3:30 am
 
Forum: Investing - Theory, News & General
Topic: Annuities panned in Forbes
Replies: 11
Views: 1058

Annuities panned in Forbes

Though this article is over a year old, I was sufficiently struck by the view therein, that I thought it was worth a thread. In part, I was curious to see whether anyone was willing to defend the views expressed by the author, which I found to be surprisingly different from anything I'd seen on the ...
by lawman3966
Mon Jan 27, 2014 2:45 am
 
Forum: Investing - Theory, News & General
Topic: Annuities panned in Forbes
Replies: 11
Views: 1058

Re: Garmin Nuvi equivalent ?

If you already have a smartphone, and are paying for 4g or other Internet service, I'd use Google maps. I bought a Garmin Nuvi, but only because I was trying to avoid paying for smartphone service. I liked the Android/Google-maps interface better than Garmin's. The difference for me is that the Garm...
by lawman3966
Sat Jan 25, 2014 11:09 pm
 
Forum: Personal Consumer Issues
Topic: Garmin Nuvi equivalent ?
Replies: 32
Views: 1744

Re: Ric Edelman "times have changed" claim

There will always be shows for people too lazy to read "Common Sense on Mutual Funds" and who are willing to part with half or more of their life's savings to let someone else do their financial thinking for them. If passive investing is a good idea, then the endless noise of the weekend f...
by lawman3966
Thu Jan 23, 2014 2:33 am
 
Forum: Investing - Theory, News & General
Topic: Ric Edelman "times have changed" claim
Replies: 24
Views: 3598

Re: Can I move the principle in a 401k

The only way to know for sure is to contact the plan administrator. In general, most plans don't allow you to roll over (i.e. move the money to a Rollover IRA) either the principal or the investment gains until you leave the company. One end run around this rule is to borrow money from the plan, inv...
by lawman3966
Mon Jan 20, 2014 11:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can I move the principle in a 401k
Replies: 9
Views: 634

Re: Dumb Questions about Edward Jones Fees

The short answer is that you should move all of the assets to Vanguard as soon as possible. If you want longer explanations, there is essentially no limit to how much detail one can go into due to the complexities of the stock/bond markets themselves, and the fee structures at various wealth managem...
by lawman3966
Thu Jan 16, 2014 4:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Dumb Questions about Edward Jones Fees
Replies: 10
Views: 1290

Re: Issues with small employer 401K

I wonder whether it's possible to work out an arrangement with the employer where she "quits" the job, rolls the money over to an IRA, and starts the job again the following week. I'd proceed very carefully here, and get advice from a lawyer before doing this. The IRS might consider this ...
by lawman3966
Thu Jan 16, 2014 1:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Issues with small employer 401K
Replies: 27
Views: 1829

Re: Issues with small employer 401K

Your issue is a common, and longstanding one. Small firm 401K plans just don't have the leverage to get decent fees, and yes, the employees are being overcharged. However, it's usually worth participating even if the fees exceed the match, in order to get the tax break, and to have tax advantaged in...
by lawman3966
Thu Jan 16, 2014 3:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Issues with small employer 401K
Replies: 27
Views: 1829

Re: Helping parents decide whether to buy SPIA

Taylor, I would take umbrage with the concept that a SPIA "guarantees" anything. It doesn't. Note my comment, and the link, above. Caveat emptor. Yes it does "guarantee". Your problem seems to be with the financial strength of the guarantor. Naturally, that is true with any fina...
by lawman3966
Wed Jan 15, 2014 11:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Helping parents decide whether to buy SPIA
Replies: 46
Views: 1810

Re: Helping parents decide whether to buy SPIA

Look carefully into those "state guarantees". In actuality, they're not "state guarantees" at all, but "promises" by an amalgam of annuity providers within a State to "cover" losses to annuitants due to the insolvency of a member. Such programs may project th...
by lawman3966
Wed Jan 15, 2014 10:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Helping parents decide whether to buy SPIA
Replies: 46
Views: 1810

Re: Helping parents decide whether to buy SPIA

They are all insurance company products which are taxed at a higher rate, and they are all expensive. In the case of SPIA's that would come in the form of a lower payment rate. In referring to "higher" tax rates, and "lower" payment rates, it would be more helpful if you identif...
by lawman3966
Tue Jan 14, 2014 10:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Helping parents decide whether to buy SPIA
Replies: 46
Views: 1810

Re: Inflation-adjusted deferred annuity/ Roth aspect

I'm only addressing the question about owning an SPIA within a Roth account. This boils down to the question whether SPIA payouts are taxable (as they would be if the money had been withdrawn from the Roth account to fund the annuity) or tax-free, which would be consistent with the SPIA being consid...
by lawman3966
Thu Jan 09, 2014 10:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inflation-adjusted deferred annuity
Replies: 3
Views: 357

Re: Do you oversave for retirement or not?

I must say that I don't know what "oversaving" is. I'm reminded of the late, great Robin Harris saying that he didn't know what "spare change" was. A related concept that I could grasp would be "under-living" during one's working years. If you're living the lifestyle yo...
by lawman3966
Wed Jan 08, 2014 4:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you oversave for retirement or not?
Replies: 70
Views: 5814

Re: Brutal 401k options - how do I convince my company to sw

The most important consideration in small 401k plans is who is going to pay the costs if cheaper fund products are used. Your plan is using an ins co because the higher fees pay for the cost of plan admin and compliance costs which are 0.8 to1.2% of plan assets or up to 12k in a $1M plan. In additi...
by lawman3966
Wed Jan 08, 2014 1:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Brutal 401k options - how do I convince my company to switch
Replies: 17
Views: 1067

Re: Brutal 401k options - how do I convince my company to sw

I've seen the wiki for the initial e-mail template, but I have a couple questions. Background: We're a bit over 100 employees, I don't know the plan assets. Considering a good part of the company has been around a long time and we have low turnover, I imagine it is over $1m. 1) So .. How do I get m...
by lawman3966
Wed Jan 08, 2014 1:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Brutal 401k options - how do I convince my company to switch
Replies: 17
Views: 1067

Re: Updated opinions about Ally Bank?

I started with Ally about a year ago, and so far, the experience is entirely positive. I noticed one feature of theirs that I admit bothers me a bit though. They have a "popmoney" (or similarly named feature) that allows an account holder to transfer money to any person anywhere at the tou...
by lawman3966
Mon Jan 06, 2014 5:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Updated opinions about Ally Bank?
Replies: 61
Views: 6107

Re: Why Include Bonds in a Portfolio?

You would not need bonds. I think a great plan would be to have a target amount for retirement, invest as much as you can in broad index, and cash out when you hit your goal. Seems reasonable, but the notion of quitting upon hitting the "goal" assumes that (a) the goal point is known with...
by lawman3966
Mon Jan 06, 2014 12:39 pm
 
Forum: Investing - Theory, News & General
Topic: Why Include Bonds in a Portfolio?
Replies: 74
Views: 3837

Re: 401k terminated with no notice

While I can't really answer your main question, you have another issue to address. You should be contacting Vanguard to establish what the deadline is for moving your funds out. I assume that you'll have to roll the funds to an IRA, or to another 401K (though you'd likely have to get a new job with ...
by lawman3966
Sun Dec 15, 2013 10:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k terminated with no notice
Replies: 20
Views: 2470

Re: Venezuela report Dec 15 2013

Very interesting. Textbook economics at work there with hyperinflation, price controls, shortages, etc. Do you worry at all about the government taking your property? I'm a long way from retirement, but I have considered the possibility of retiring or owning a vacation home in someplace in Central ...
by lawman3966
Sun Dec 15, 2013 10:28 pm
 
Forum: Personal Consumer Issues
Topic: Venezuela report Dec 15 2013
Replies: 37
Views: 2268

Re: Any bogleheads work "for the dark side"?

He once complained about his income and relatives asked why he simply doesn't just become a financial advisor. He responded that his conscience wouldn't allow it. He related that the average fee level paid by people investing in mutual funds in his country was 3% of assets/year. Thus, the job of fi...
by lawman3966
Sun Dec 15, 2013 6:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Any bogleheads work "for the dark side"?
Replies: 36
Views: 4010

Re: Any bogleheads work "for the dark side"?

While I haven't been faced with this dilemma yet, a close relative was. I am going to briefly relate his experiences below (which occurred in a foreign country). My relative had been a stockbroker for about 20 years as of the mid-2000s (first decade of the MMs). He became progressively more aware of...
by lawman3966
Sun Dec 15, 2013 5:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Any bogleheads work "for the dark side"?
Replies: 36
Views: 4010

Re: Active Management Funds - A Hypothetical Question

•Active managers outperform the index by 0.12% before fees, but charge more in fees than the value they create This strikes me as being somewhere between difficult to believe, and mathematically impossible. I will analogize to make my point. The "index" is a set of 100 farms that produces...
by lawman3966
Fri Dec 13, 2013 9:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Active Management Funds - A Hypothetical Question
Replies: 26
Views: 1006
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