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Re: Do you regret buying your home?

Overall, owning is positive. Big Negatives: 1. Maintenance. I'd invest more up front in maintenance free everything. And, I mean everything. 2. Dealing with Mortgage Companies and Finance process. Despite the challenge - if I did it over, I'd probably save and pay cash to avoid dealing with Mortgage...
by leonard
Thu Oct 23, 2014 2:55 pm
 
Forum: Personal Consumer Issues
Topic: Do you regret buying your home?
Replies: 46
Views: 2544

Re: Creating a 401k for my company through Employee Fiduciar

ERISA Stone wrote:
leonard wrote:So, the IRS is your standard for fiduciary duty? Not mine - I like the standard to be higher and more clear cut.



To be more general, yes, the government is my standard for fiduciary duty since they are the ones who govern fiduciary duty.


I think there's a higher standard.
by leonard
Thu Oct 23, 2014 1:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: Creating a 401k for my company through Employee Fiduciar

ERISA Stone wrote:
leonard wrote:
I audit a 401k.


Was this intended to be singular?


Yes. And, assisted in setting it up to be as simple and straightforward as possible. But, I have also spent the last 20 years in corporate finance, including audit. Do I get the job?
by leonard
Thu Oct 23, 2014 1:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: Creating a 401k for my company through Employee Fiduciar

Rationalize it however you want. You are removing $25 from a participants account. That's a fiduciary decision. If it's an unnecessary $25 that is meant to force an action and doesn't benefit the participant, that's not doing fiduciary duty. Pretty cut and dry to me. Are you saying that you believe...
by leonard
Thu Oct 23, 2014 1:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: Creating a 401k for my company through Employee Fiduciar

So, you think an essentially unnecessary fee is fulfilling fiduciary duty? How does that work? Necessary fees are one thing - but making up a fee to motivate moving out of the plan is not executing fiduciary duty. I would think by definition unnecessary expense and fiduciary duty are incompatible c...
by leonard
Thu Oct 23, 2014 1:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: Creating a 401k for my company through Employee Fiduciar

Rationalize it however you want. You are removing $25 from a participants account. That's a fiduciary decision. If it's an unnecessary $25 that is meant to force an action and doesn't benefit the participant, that's not doing fiduciary duty. Pretty cut and dry to me. Are you saying that you believe...
by leonard
Thu Oct 23, 2014 12:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: Building a New House, Advice please.

Consider building the exterior walls with ICFs: Insulated Concrete Forms. Especially since this will be in Oklahoma where the threat of tornados is high, the difference in cost could be well worth it. Thanks! Thats one of the items on our list to discuss. I'll let you know how it comes out. BW My b...
by leonard
Thu Oct 23, 2014 12:43 pm
 
Forum: Personal Consumer Issues
Topic: Building a New House, Advice please.
Replies: 62
Views: 4658

Re: Creating a 401k for my company through Employee Fiduciar

Rationalize it however you want. You are removing $25 from a participants account. That's a fiduciary decision. If it's an unnecessary $25 that is meant to force an action and doesn't benefit the participant, that's not doing fiduciary duty. Pretty cut and dry to me. Are you saying that you believe...
by leonard
Thu Oct 23, 2014 12:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: How do so many HCEs contribute the max to 401k

I disagree. I think: 1. They fail to build the match in to their overall compensation model, such that it is planned for as part of overall compensation. 2. They incur the administrative overhead of administering vesting schedules, instead of keeping it simple. Companies find false economies with m...
by leonard
Thu Oct 23, 2014 12:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do so many HCEs contribute the max to 401k
Replies: 30
Views: 2597

Re: Creating a 401k for my company through Employee Fiduciar

FWIW, we would recommend clients charge a $25 quarterly account administrative fee to incentivize terminated employees to leave. In what way is an unnecessary $25 fee looking out for a plan participant's best interest. I am certainly no expert, but from what I understand, it is a business decision ...
by leonard
Wed Oct 22, 2014 3:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: How do so many HCEs contribute the max to 401k

Right. Well, generally, their employers have the good sense to make the 401k a Safe Harbor plan. Pretty straightforward. Many companies do not have safe harbor plans for one and/or two primary reasons. 1. They do not wish to do a match as high as the safe harbor requirements. 2. Safe harbor plans r...
by leonard
Wed Oct 22, 2014 2:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do so many HCEs contribute the max to 401k
Replies: 30
Views: 2597

Re: Creating a 401k for my company through Employee Fiduciar

ERISA Stone wrote:FWIW, we would recommend clients charge a $25 quarterly account administrative fee to incentivize terminated employees to leave.


In what way is an unnecessary $25 fee looking out for a plan participant's best interest.
by leonard
Wed Oct 22, 2014 1:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: Getting back into the market

Thank You ALL for your excellent recommendations. I will wait til end of October to begin dollar cost average back into the market Quarterly, Want to see what will happen when Quantatative Easing is eliminated. I like the simplicity of Vanguard LifeStrategy Income Fund and the Vanguard Target Retir...
by leonard
Wed Oct 22, 2014 1:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Getting back into the market
Replies: 32
Views: 3790

Re: How do so many HCEs contribute the max to 401k

Hey all- I might have brought this up in the past, but I repeatedly read, mostly on portfolio check threads, how people with high income contribute 17.5k to their 401k. It seems so common but from everything I've read it seems like a rarity for this to be possible. Is there something I'm missing? M...
by leonard
Wed Oct 22, 2014 1:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do so many HCEs contribute the max to 401k
Replies: 30
Views: 2597

Re: New to Investing, Based in Hong Kong

Do you have access to any sort of tax advantaged accounts that have annual contribution limits? If so, you will not want to wait until January 2015 to get started, because you might miss out on 2014 limits. I'm not too sure this applies to the HK market - the tax on investments is pretty much zero ...
by leonard
Wed Oct 22, 2014 12:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to Investing, Based in Hong Kong
Replies: 51
Views: 2447

Re: Risk in a high dividend stock portfolio

There are millions of "strategies" out there. You're on the bogleheads website - instead of the question "how about (random) strategy X?" go ahead and spend the time setting up a low cost, index fund based Asset Allocation and a plan for rebalancing periodically. Leave the divide...
by leonard
Wed Oct 22, 2014 12:42 pm
 
Forum: Investing - Theory, News & General
Topic: Risk in a high dividend stock portfolio
Replies: 19
Views: 1853

Re: New to Investing, Based in Hong Kong

Do you have access to any sort of tax advantaged accounts that have annual contribution limits?

If so, you will not want to wait until January 2015 to get started, because you might miss out on 2014 limits.
by leonard
Tue Oct 21, 2014 10:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to Investing, Based in Hong Kong
Replies: 51
Views: 2447

Re: Advice sought for $6M investment

Yesterdaysnews wrote:Makes sense. Still, the loss by lower yields is more abstract than looking at your 6 million shrink in your vanguard account.


Abstract loss is no less a loss.
by leonard
Mon Oct 20, 2014 5:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice sought for $6M investment
Replies: 36
Views: 3669

Re: Advice sought for $6M investment

Fair enough but you can lose money in a bond fund if rates rise correct (NAV decreases) ?? If you buy individual bonds you cannot lose money if you hold to maturity. Sure. But, if I had $6M and wanted muni's, simplification would have a strong pull. Especially, since I might be able to get Institut...
by leonard
Mon Oct 20, 2014 5:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice sought for $6M investment
Replies: 36
Views: 3669

Re: DOW Watchers Stomach Syndrome

Dow was up 19 today. That's .12% according to Marketwatch. What was the big deal?
by leonard
Mon Oct 20, 2014 5:22 pm
 
Forum: Investing - Theory, News & General
Topic: DOW Watchers Stomach Syndrome
Replies: 25
Views: 2082

Re: How do so many HCEs contribute the max to 401k

Hey all- I might have brought this up in the past, but I repeatedly read, mostly on portfolio check threads, how people with high income contribute 17.5k to their 401k. It seems so common but from everything I've read it seems like a rarity for this to be possible. Is there something I'm missing? M...
by leonard
Mon Oct 20, 2014 2:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do so many HCEs contribute the max to 401k
Replies: 30
Views: 2597

Re: Advice sought for $6M investment

Congrats! Personally, I'd hire a guy to just buy and sell munis for me, pay him a fixed amount per year, and live off the interest tax free money and enjoy life. When I hit 10 mil I will do it, but would consider doing it at 5 mil. Personally, I wouldn't. 100% bond (muni) portfolio is not the best ...
by leonard
Mon Oct 20, 2014 1:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice sought for $6M investment
Replies: 36
Views: 3669

Re: Are Vanguard's target-retirement funds too aggressive?

That's why TR funds should be chosen on the stock to bond ratio - not on their target date.
by leonard
Fri Oct 17, 2014 5:02 pm
 
Forum: Investing - Theory, News & General
Topic: Are Vanguard's target-retirement funds too aggressive?
Replies: 24
Views: 1713

Re: Creating a 401k for my company through Employee Fiduciar

That was it. She trusted my judgement and made the change. Done. That's what some people want: Someone else to make the decision and provide direction, and then leave it alone. But, plan administrators should never give plan participants specific investing advice. You can't tell them how to invest....
by leonard
Fri Oct 17, 2014 12:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3178

Re: Electric Razors

I tried using DE blades with shave cream for about 2-3 months. I could never get the hang of it after trying ~20 different blades, getting nicks almost every time, and I was never impressed with the closeness of the shave. Besides, it was a huge time sink. I don't need or want to shower immediately...
by leonard
Fri Oct 17, 2014 12:02 pm
 
Forum: Personal Consumer Issues
Topic: Electric Razors
Replies: 26
Views: 1862

Re: Shed into gym?

Maybe someone hasn't woken up and smelled the coffee yet. This conversion has a camouflaged project name. "Home Gym" in a detached building = "Man Cave". Sometimes a gym is a gym. No big screen TV's or comfy couches. You get in, lift weights, do your cardio and get out. If you w...
by leonard
Fri Oct 17, 2014 11:58 am
 
Forum: Personal Consumer Issues
Topic: Shed into gym?
Replies: 23
Views: 2023

Re: Crazy asset-based fees in my 401K!

IMO, the best way would be for the OP to determine what he wants to pay for a retirement plan as a whole (contributions, direct expenses, etc) and not worry about what each individual participant costs. It is counterintuitive (to me anyway) to reduce one benefit for someone who takes advantage of a...
by leonard
Fri Oct 17, 2014 11:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482

Re: Couch Surfing

Again, not the lottery I would want to win. Just to secure the upside of a nice chat. I'm curious. Do you drive a car? Fly in airplanes? Eat food at restaurants? Take public transit? Walk out in public? Or, does your "death vs nice chat" outlook on life only apply to those things you've n...
by leonard
Thu Oct 16, 2014 10:11 pm
 
Forum: Personal Consumer Issues
Topic: Couch Surfing
Replies: 90
Views: 5215

Re: Crazy asset-based fees in my 401K!

That makes sense. EF invoices quarterly in the amount of $375 ($1500 / 4) + 0.02% of plan assets at end of quarter. I'm not concerned with recouping from employees currently, as their account balances are relatively small. My partner and I comprise about 85% of the plan assets currently. One other ...
by leonard
Thu Oct 16, 2014 10:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482

Re: Electric Razors

WhiskeyJ wrote:I've heard it takes a few days/weeks for your face to adjust from wet face, shaving cream, razor blade to using an electric razor on a dry face. Can anyone speak to that change or adjustment process?


Don't do it.

If anything, grab a DE razor, shave soap, and a brush - an get an even better shave.
by leonard
Thu Oct 16, 2014 9:43 pm
 
Forum: Personal Consumer Issues
Topic: Electric Razors
Replies: 26
Views: 1862

Re: Vegas Vacation!

chaz wrote:
leonard wrote:Tackiest place I've ever been.

But always good food, good shows and good hotels.


Other than one great mexican restaurant - I can never return to Vegas, and it will be too soon.
by leonard
Thu Oct 16, 2014 9:41 pm
 
Forum: Personal Consumer Issues
Topic: Vegas Vacation!
Replies: 50
Views: 3613

Re: Why are 401k plans expensive?

Incompetence. :?: On whose part :?: I think that perhaps because too many people are trying to make a buck or spend as few bucks as possible. The employer wants to provide this as a benefit to employees but wants to spend as little as possible. The plan administrator wants to make a profit and eith...
by leonard
Thu Oct 16, 2014 9:39 pm
 
Forum: Investing - Theory, News & General
Topic: Why are 401k plans expensive?
Replies: 39
Views: 3004

Re: Vegas Vacation!

Tackiest place I've ever been.
by leonard
Thu Oct 16, 2014 5:36 pm
 
Forum: Personal Consumer Issues
Topic: Vegas Vacation!
Replies: 50
Views: 3613

Re: Dry Powder

Couple of months back I started a couple of discussions on having Cash as a targeted allocation in the portfolio for SOLE purpose of buying in dips. This does not apply to the bucket approach where retirees have a portion in Cash/ST instruments to withstand market drops (For example, having one yea...
by leonard
Thu Oct 16, 2014 5:24 pm
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3513

Re: Crazy asset-based fees in my 401K!

That makes sense. EF invoices quarterly in the amount of $375 ($1500 / 4) + 0.02% of plan assets at end of quarter. I'm not concerned with recouping from employees currently, as their account balances are relatively small. My partner and I comprise about 85% of the plan assets currently. One other ...
by leonard
Thu Oct 16, 2014 5:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482

Re: Couch Surfing

I think your world view is unrealistic if you think it is probable to be drugged and locked in a basement. Cause - it never happens, right? And, the upside if it doesn't is a nice chat? That cost benefit doesn't work for me. Practically. Again, not the lottery I would want to win. Just to secure th...
by leonard
Wed Oct 15, 2014 1:33 pm
 
Forum: Personal Consumer Issues
Topic: Couch Surfing
Replies: 90
Views: 5215

Re: Couch Surfing

investor1 wrote:I think your world view is unrealistic if you think it is probable to be drugged and locked in a basement.


Cause - it never happens, right?

And, the upside if it doesn't is a nice chat?

That cost benefit doesn't work for me.
by leonard
Wed Oct 15, 2014 1:29 pm
 
Forum: Personal Consumer Issues
Topic: Couch Surfing
Replies: 90
Views: 5215

Re: Crazy asset-based fees in my 401K!

The decision to charge the participant is different than who writes the check. If you want to recoup from employees - leave the 401k assets untouched and simply pay them a fraction less (or hold down one year raise by the .08% fee amt). There is an administrative benefit to NOT having the .08% asse...
by leonard
Wed Oct 15, 2014 1:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482

Re: Couch Surfing

Certainly, we don't need to experience sleeping in a strangers house in order to have an opinion about it - do we. Certainly not. However experience often leads to practical decisions whereas inexperience often leads to speculation. I think we are bypassing common sense and that we all deal with pe...
by leonard
Wed Oct 15, 2014 12:53 pm
 
Forum: Personal Consumer Issues
Topic: Couch Surfing
Replies: 90
Views: 5215

Re: What is common for a severance package?

One point to negotiate is the timing of the payment. If it would be advantageous from a tax standpoint (and you have the cash flow) you can ask them to defer payment of the severance until next year. But, don't ask for this until everything else is agreed upon - as they may think you don't need the ...
by leonard
Wed Oct 15, 2014 12:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: What is common for a severance package?
Replies: 25
Views: 1812

Re: Couch Surfing

Certainly, we don't need to experience sleeping in a strangers house in order to have an opinion about it - do we. Certainly not. However experience often leads to practical decisions whereas inexperience often leads to speculation. I think we are bypassing common sense and that we all deal with pe...
by leonard
Wed Oct 15, 2014 12:43 pm
 
Forum: Personal Consumer Issues
Topic: Couch Surfing
Replies: 90
Views: 5215

Re: Crazy asset-based fees in my 401K!

When I reviewed EF a few years ago - the fee could be either paid out of plan assets (employee accounts) or it could be invoiced to the company. Invoicing to the company is the better option. It makes absolutely makes no sense to set up an entire 401k to get money in to retirement accounts - and th...
by leonard
Wed Oct 15, 2014 12:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482

Re: Why are 401k plans expensive?

Incompetence.
by leonard
Wed Oct 15, 2014 12:19 pm
 
Forum: Investing - Theory, News & General
Topic: Why are 401k plans expensive?
Replies: 39
Views: 3004

Re: Crazy asset-based fees in my 401K!

1% is indeed high, but I would say that it is about average. In this case, average is NOT acceptable. My small business started a 401k in March with John Hancock. Before I knew better, I allowed an investment advisor/consultant to attach himself to our plan for an additional 1.00%. We are charged a...
by leonard
Wed Oct 15, 2014 12:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482

Re: Couch Surfing

We all know that risk is a trade off of return vs loss. If you don't want to take the risk of couchsurfing, don't. But, to continue to insist that the risk isn't worth it without ever doing it is a broken record. Don't want to couchsurf? Don't do it. No one should take on risk they don't want to. B...
by leonard
Wed Oct 15, 2014 12:12 pm
 
Forum: Personal Consumer Issues
Topic: Couch Surfing
Replies: 90
Views: 5215

Re: Indoor rowing machine - worth it?

Do we even agree that one can increase the resistance via the damper. One cannot increase the resistance via the damper alone, and in fact can increase the resistance without changing the damper at all. As the manufacturer clearly states, the amount of resistance is a function of the damper AND the...
by leonard
Wed Oct 15, 2014 12:06 pm
 
Forum: Personal Consumer Issues
Topic: Indoor rowing machine - worth it?
Replies: 73
Views: 3572

Re: Crazy asset-based fees in my 401K!

There are a lot of services that go into properly maintaining a 401(k) plan. A 401(k) plan is not the same as an IRA or a taxable brokerage account but it seems like a lot of posters here fail to see that. Paying fees is contrary to boglehead views so posts like this are going to be met with commen...
by leonard
Tue Oct 14, 2014 11:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482

Re: Crazy asset-based fees in my 401K!

There are a lot of services that go into properly maintaining a 401(k) plan. A 401(k) plan is not the same as an IRA or a taxable brokerage account but it seems like a lot of posters here fail to see that. Paying fees is contrary to boglehead views so posts like this are going to be met with commen...
by leonard
Tue Oct 14, 2014 10:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482

Re: Crazy asset-based fees in my 401K!

A 401k plan (with all expenses included ER, plus adiminstrative fees, plan fees, etc) should be able to pretty easily have a fully loaded expense ratio as a percent of plan assets of .5%. In large plans, that should go down a great deal from there. So, 1% is a complete rip off. And, I would argue b...
by leonard
Tue Oct 14, 2014 10:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Crazy asset-based fees in my 401K!
Replies: 49
Views: 2482
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