Search found 1593 matches

by Frugal Al
Fri Nov 04, 2016 6:58 am
Forum: Personal Consumer Issues
Topic: Buying an Audi A4
Replies: 73
Views: 4800

Re: Buying an Audi A4

Make sure the extended warranty covers walnut blasting of the valves due to carbon build-up.
by Frugal Al
Thu Oct 13, 2016 3:57 am
Forum: Investing - Theory, News & General
Topic: Navy Federal Credit Union - not so different from banks
Replies: 45
Views: 3184

Re: Navy Federal Credit Union - not so different from banks

Maybe there is more to it, but it seems like NFCU got railroaded on this one--nothing so egregious as to warrant the hefty fine. In the old days it was common place for a creditor to contact one's commanding officer for failure to pay. Apparently that's not the case anymore. I think the CFPB is a bi...
by Frugal Al
Thu Oct 13, 2016 3:52 am
Forum: Investing - Theory, News & General
Topic: NFCU - Some Certificate Rates Drop
Replies: 3
Views: 682

Re: NFCU - Some Certificate Rates Drop

Maybe there is more to it, but it seems like NFCU got railroaded on this one--nothing so egregious as to warrant the hefty fine. In the old days it was common place for a creditor to contact one's commanding officer for failure to pay. Apparently that's not the case anymore.
by Frugal Al
Sun Oct 02, 2016 4:40 am
Forum: Investing - Theory, News & General
Topic: SS as a Bond
Replies: 46
Views: 3685

Re: SS as a Bond

For $30,000 a year for 25 years to have a $325,000 present value requires a discount rate of about 7.83%. That is way too high, in my opinion. Since SS benefits are CPI-indexed a better discount rate would be that of long term TIPS, which currently yield about 0.6%. (See WSJ TIPS Quotes 6/30/2016 ....
by Frugal Al
Thu Sep 22, 2016 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Yup, another pension buyout offer...
Replies: 20
Views: 3216

Re: Yup, another pension buyout offer...

[*]Assuming pension payments are collected in full until life expectancy and then cease completely, isn't the best way to estimate the expected value. A better way weights the pension amount every year by the probability of surviving to that age Cruncher, with all due respect, while your approach i...
by Frugal Al
Wed Sep 14, 2016 12:12 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 4193

Re: Presidential Election Insurance, Use T-Bills?

Greenspan seems to agree with me. He never comes out and says exactly who he is talking about. He probably posts on this forum It would appear this thread has gotten overly political. As for Greenspan, he has zero credibility and knows as little about forecasting as everyone else. He was asleep at ...
by Frugal Al
Sun Aug 28, 2016 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Can we get by without permanent life insurance?
Replies: 85
Views: 5740

Re: Can we get by without permanent life insurance?

You're not missing anything. Brother in law is a tool and should be treated accordingly. The training for many (most???) life insurance salespeople really pushes home the mistaken concept that virtually EVERYONE needs some form of permanent life insurance. I've had friends who have had this trainin...
by Frugal Al
Sat Aug 27, 2016 9:19 am
Forum: Personal Consumer Issues
Topic: Honda maintenance schedule?
Replies: 49
Views: 3485

Re: Honda maintenance schedule?

The door jamb is fine if you just want comfort, but there is not harm in any value between the door jamb and the max sidewall That statement is not true, and the article referenced points out that there are many variables that determine the optimal tire pressures. Let's not read more into the artic...
by Frugal Al
Wed Aug 24, 2016 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Seemingly Too Good To Be True Investment Opportunity: Invest or Don't?
Replies: 85
Views: 7003

Re: Seemingly Too Good To Be True Investment Opportunity: Invest or Don't?

Does that business philosophy sound like a public figure we all know? Wow, I'm doing my best to think of it TropikThunder, but I can't come up with a name. If you can't add something constructive, keep it to yourself. For the OP, I wouldn't get involved in this deal unless I was hands on with the b...
by Frugal Al
Sat Aug 20, 2016 10:52 am
Forum: Personal Consumer Issues
Topic: Best Crossover SUV to purchase
Replies: 146
Views: 14398

Re: Best Crossover SUV to purchase

Varick, what exactly do you mean by long term? I consider long term ownership to be 10+ years. If you are concerned about long term cost of ownership, well past the new or CPO warranty, the only reasonable candidates are Toyota/Lexus or Honda/Acura. The Volvo is nice. Audi's are nice. Even I've been...
by Frugal Al
Mon Aug 15, 2016 4:18 am
Forum: Personal Finance (Not Investing)
Topic: You have $10 Million and 10 years to live. What would you do?
Replies: 55
Views: 5357

Re: You have $10 Million and 10 years to live. What would you do?

I believe there's an old punchline: "First, I'd ask my mother-in-law to move in and that 10 years will seem like an eternity."
by Frugal Al
Sun Aug 14, 2016 7:42 am
Forum: Personal Consumer Issues
Topic: Best Crossover SUV to purchase
Replies: 146
Views: 14398

Re: Best Crossover SUV to purchase

Even more to the point, stuffing a V6 on the RDX actually made it drive worse (go read any auto magazine review of the first year after they dropped the turbo 4) though it does appeal to buyers who are brainwashed to think more cylinders are always better. The current V6 RDX handles better than the...
by Frugal Al
Wed Aug 03, 2016 11:58 am
Forum: Personal Finance (Not Investing)
Topic: How to value a deferred annuity?
Replies: 15
Views: 855

Re: How to value a deferred annuity?

The value of the QLAC would go up over time as long as you are alive.. That's not quite correct; the value would drop to zero if the annuitant were to contract a terminal illness that would take its toll prior to annuity commencement. In fact, there are many moving parts on such a valuation, includ...
by Frugal Al
Wed Aug 03, 2016 9:16 am
Forum: Personal Finance (Not Investing)
Topic: How to value a deferred annuity?
Replies: 15
Views: 855

Re: How to value a deferred annuity?

...-it needs to be discounted to reflect my actuarial expectation. What will it be worth in 2035, when I am 84? If I'm dying of cancer, probably $0. If I'm running marathons, maybe a lot more than $125K. The value of the insurance has already had the discount applied, and profit for the insurer. As...
by Frugal Al
Mon Aug 01, 2016 2:57 pm
Forum: Personal Consumer Issues
Topic: Should I replace my hot water heater?
Replies: 15
Views: 1215

Re: Should I replace my hot water heater?

Has the anode rod ever been replaced? Regardless, 22 years is a good run. I suspect if the anode rod is replaced when needed, the new one might go 30 years. I'd definitely replace it. These things have a tendency to go out at the worst time. I try to estimate useful life of most of my appliances and...
by Frugal Al
Sat Jul 30, 2016 5:47 am
Forum: Personal Consumer Issues
Topic: Ford Air Bag Recall
Replies: 4
Views: 482

Re: Ford Air Bag Recall

I understand every company may handle recalls differently. I think Honda would not give loaners for the passenger side airbag as the passenger can ride in the back seat. That is correct. I'm planning on disconnecting the passenger side should my driver side airbag get replaced earlier. On some cars...
by Frugal Al
Thu Jul 28, 2016 5:03 am
Forum: Personal Finance (Not Investing)
Topic: Small Pension vs. Small Lump Sum
Replies: 18
Views: 1625

Re: Small Pension vs. Small Lump Sum

Am I missing something? Immediate Annuities, while a good tool and sales site, is really only accurate if annuitization is imminent. You won't be annuitizing for well over 20 years--current low rates make for a poor comparison. Secondly, a better comparison (if married) is using the monthly pension...
by Frugal Al
Sat Jul 09, 2016 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Quicken
Replies: 31
Views: 2051

Re: Quicken

I think we get the drift, abuss: you don't like or miss Quicken. I find Quicken to be a time saver, and I agree with Toons that nothing else quite has the functionality at this time.
by Frugal Al
Thu Jul 07, 2016 6:56 am
Forum: Investing - Theory, News & General
Topic: "Why most retirees will never spend down their portfolio" by Michael Kitces
Replies: 89
Views: 11560

Re: "Why most retirees will never spend down their portfolio" by Michael Kitces

While I definitely appreciate the point that Cruncher is making, considering "real" spending assumptions, I think what Kitces is also pointing out is that consumption in the later years of retirement significantly lags inflation, making "real" assumptions problematic as well. Her...
by Frugal Al
Wed Jun 29, 2016 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: How to make an easy $500 like I just did [Chase bank offer]
Replies: 60
Views: 8638

Re: How to make an easy $500 like I just did [Chase bank offer]

madbrain wrote:I have no issue using Chase checking and credit cards with Quicken, and there is no fee for using Quicken.

Thanks for your response.
by Frugal Al
Tue Jun 28, 2016 6:59 am
Forum: Personal Finance (Not Investing)
Topic: How to make an easy $500 like I just did [Chase bank offer]
Replies: 60
Views: 8638

Re: How to make an easy $500 like I just did [Chase bank offer]

This promotion seems like it might be worth the trouble. For those of us who use Quicken, can anyone speak to using it with Chase? In the past they didn't always play well together, and I believe Chase charged an extra monthly fee for those using personal financial software. Also, Jamie Dimon isn't ...
by Frugal Al
Thu Jun 23, 2016 3:48 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 125
Views: 16799

Re: Why do people buy annuities?

Profitability is another problem, of course, but don't the insurers match maturities on liabilities and assets? That's the way I would run an insurance company (or a bank, which is another topic). The insurance companies do attempt to liability match, but the nature of some of their very long durat...
by Frugal Al
Tue Jun 21, 2016 4:51 am
Forum: Personal Finance (Not Investing)
Topic: Early Pension Payout Question
Replies: 11
Views: 1622

Re: Early Pension Payout Question

The lump sum available at age 65 is probably not too accurate, and not guaranteed, assuming this is a typical pension. Who knows what interest rates will be 26 years out. Also, a better IRR comparison is to use the 100% joint life payout amount, if available, since the survivorship feature is more s...
by Frugal Al
Fri Jun 17, 2016 1:06 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 125
Views: 16799

Re: Why do people buy annuities?

There is no other way to get longevity insurance than to buy a life annuity. That's not entirely true. Although some can't afford to defer social security, the best value in longevity insurance is FIRST optimizing social security. I see too many people take SS early, only to turn around and buy an ...
by Frugal Al
Fri Jun 10, 2016 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Evaluate Options - Lumpsum or Monthly
Replies: 4
Views: 434

Re: Evaluate Options - Lumpsum or Monthly

You could also get a quote on a deferred fixed annuity purchased with the lump sum. One place to do that is https://www.immediateannuities.com/annuity-calculators/?sce=hc. If the pension annuitization is imminent, say a year or two, comparing pricing to a commercially available annuity can be worth...
by Frugal Al
Fri Jun 10, 2016 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Pension-PBGC & Fund management
Replies: 9
Views: 438

Re: Pension-PBGC & Fund management

I wouldn't worry too much about the single employer PBGC coverage, provided that one falls within the coverage limits--it appears that at your age/amount it is within limits. Unless there are health/longevity issues, or tax management issues, and/or one is sitting on >50 times anticipated expenses, ...
by Frugal Al
Tue May 31, 2016 9:35 am
Forum: Investing - Help with Personal Investments
Topic: To take a pension distribution or not????
Replies: 11
Views: 1263

Re: To take a pension distribution or not????

I realize what a good deal pensions are for employees but falling interest rates have made them increasingly expensive to fund for employers. Whether or not they are expensive to the employer (plan sponsor) is immaterial, assuming it's within PBGC limits. All one should care about is whether or not...
by Frugal Al
Tue May 31, 2016 9:04 am
Forum: Investing - Help with Personal Investments
Topic: To take a pension distribution or not????
Replies: 11
Views: 1263

Re: To take a pension distribution or not????

Yes, the decision whether to take the lump sum or to take the pension can be a complicated decision with a lot of things to consider. I have read a lot of threads on this issue and a lot of informed opinion from posters. It seems that in most cases that the employee should keep the pension. Nesdaid...
by Frugal Al
Tue May 31, 2016 7:58 am
Forum: Investing - Help with Personal Investments
Topic: To take a pension distribution or not????
Replies: 11
Views: 1263

Re: To take a pension distribution or not????

If she took the $29k lump sum and turned around and spent it immediately on a deferred annuity that would start paying her in 19 years, it would pay only $325/month. The $513/mo offer in 19 years would appear to be a much better deal. Why would she do that? That's tantamount to buying water in the ...
by Frugal Al
Mon May 30, 2016 6:17 am
Forum: Personal Consumer Issues
Topic: When to get first car service done
Replies: 70
Views: 4147

Re: When to get first car service done

Thanks folks. I did not know that I could check the Oil level on my dashboard. You can't on a Honda, nor can you on most other vehicles. Don't confuse the remaining oil life with the oil level. The MM does not replace the necessity of manually checking your oil level--one of its short comings in my...
by Frugal Al
Sat May 28, 2016 5:33 am
Forum: Investing - Help with Personal Investments
Topic: Lump Sum Pension Offer
Replies: 21
Views: 2126

Re: Lump Sum Pension Offer

Shouldn't be using a single life pay rate when comparing to a lump sum option; however, any reasonable 100% joint life pay rate would still prove this to be a very rich pension. Normally with small pensions and long time horizons one can make an argument to just take the lump and be done with it--ha...
by Frugal Al
Sun May 01, 2016 6:19 am
Forum: Investing - Theory, News & General
Topic: What's a typical pension funding % ?
Replies: 30
Views: 3970

Re: What's a typical pension funding % ?

Congress regularly tinkers with the discount rates used for pension minimum funding standards as a way to raise revenue. That's what happened with "MAP-21". MAP-21 pension funding changes were made to assuage the effect low interest rates were having on plan sponsors. It was a bit of a st...
by Frugal Al
Sat Apr 30, 2016 6:35 am
Forum: Personal Consumer Issues
Topic: Buying a New Car...Is it Unwise?
Replies: 68
Views: 6806

Re: Buying a New Car...Is it Unwise?

I think you've just got a case of "new car-itis." There's absolutely nothing wrong with the car you have. You've probably taken $20k to $22k of depreciation over 8 years (and this doesn't include sales tax expense). You've got relatively low mileage on the TSX and in 8 more years it will s...
by Frugal Al
Wed Apr 27, 2016 4:43 am
Forum: Personal Consumer Issues
Topic: CVT car transmissions
Replies: 25
Views: 2626

Re: CVT car transmissions

Every Toyota Prius has a CVT, and the transmissions consistently go 300,000 miles with no problems. The Corolla will use the same tech, and likely last as long. William, you're not paying attention, you're comparing apples and oranges :oops: (see above post). The Prius doesn't use a steel belt/chai...
by Frugal Al
Tue Apr 26, 2016 3:31 pm
Forum: Personal Consumer Issues
Topic: CVT car transmissions
Replies: 25
Views: 2626

Re: CVT car transmissions

The Prius has always had a CVT and has been among the most reliable cars out there. I would expect other Toyota CVT systems to behave similarly. The Toyota Prius and other Toyota hybrids don't use a conventional CVT type transmission, but rather what they call an eCVT, utilizing a planetary gear se...
by Frugal Al
Mon Apr 25, 2016 9:16 am
Forum: Investing - Theory, News & General
Topic: Deflation ahead? Nobel Prize Economics winner's thought
Replies: 84
Views: 9566

Re: Deflation ahead? Nobel Prize Economics winner's thought

I'm dumbfounded that this thread is still open: these economic discussions seldom lead to anything good. I'm also dumbfounded that Bernanke is apparently suggesting the Fed be granted more power with his proposed concept of a Money-Financed Fiscal Policy (MFFP).
by Frugal Al
Sun Apr 24, 2016 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Quicken 2014 just starting asking for "Intuit ID Password"
Replies: 16
Views: 3861

Re: Quicken 2014 just starting asking for "Intuit ID Password"

We stopped using Quicken many years ago and do not miss the cost or investment of time. Our financial lives are much more simple. I'm certainly not trying to be a shill for Quicken and I admit there is a lot of room for its improvement; but, over the many years of its use, once set up, it has saved...
by Frugal Al
Tue Apr 19, 2016 7:44 am
Forum: Investing - Theory, News & General
Topic: Warning Signs [Economic health indicators]
Replies: 283
Views: 43843

Re: Warning Signs [Economic health indicators]

If you want radio news either listen to the BBC World Service or your own (excellent) NPR, if you can. Although I enjoy some NPR programming, it is far from excellent. If I understand you correctly, Vt, you're saying one should carefully choose their biased news source. And (I'd add) they should ca...
by Frugal Al
Fri Apr 15, 2016 6:37 am
Forum: Personal Finance (Not Investing)
Topic: Is this a SS filing no-brainer?
Replies: 11
Views: 1083

Re: Is this a SS filing no-brainer?

Definitely agree with others suggesting you run an SS analyzer. Although SS claiming strategies like the so-called "70/62 Solution" can work, the truth is in the details. For it to work, the higher earning spouse is older and also usually the male, having a higher mortality rate. Such a sc...
by Frugal Al
Fri Apr 08, 2016 9:23 am
Forum: Investing - Theory, News & General
Topic: guaranteed 5% vs stocks?
Replies: 202
Views: 26994

Re: guaranteed 5% vs stocks?

packet wrote:It's chasing performance... but with no down side!

Every time you share data with a new financial services provider there is a potential downside through mishandling/negligence/incompetence of that data handling. I try to open as few new accounts as possible.
by Frugal Al
Tue Mar 29, 2016 7:26 am
Forum: Investing - Theory, News & General
Topic: 3% annuity costs a little more than a CPI-U adjusted one
Replies: 17
Views: 1570

Re: 3% annuity costs a little more than a CPI-U adjusted one

I think what Cruncher saying is that TIPS are a more efficient inflation hedge than the CPI-U indexed annuity. Not only that, but TIPS are not irrevocable, as is the annuity funding. Also, the U.S. Treasury offers lower risk than an insurance company, when the bad stuff hits the fan. Given those rea...
by Frugal Al
Mon Mar 28, 2016 7:28 am
Forum: Personal Finance (Not Investing)
Topic: sellers want us to waive financing contingency
Replies: 80
Views: 7202

Re: sellers want us to waive financing contingency

They say they want our offer because we do not want to develop the land at this time, but rather for us to enjoy the property as a single family residence to raise our family. It's great that this is still going to work out for you, 'bobby. However, I've never understood property sellers that acted...
by Frugal Al
Thu Feb 25, 2016 9:38 am
Forum: Personal Consumer Issues
Topic: Winter Tire Tips
Replies: 30
Views: 2389

Re: Winter Tire Tips

If you do them, invest in a cordless impact gun. It is a real gift from the heavens for changing wheels. Good point. Even a corded impact gun is a great help. For many it's a seldom used tool, but can pay for itself in just a couple wheel changes, or water heater anode rod changes. The Harbor Freig...
by Frugal Al
Sat Feb 13, 2016 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: SPIA/social security scenarios
Replies: 13
Views: 1149

Re: SPIA/social security scenarios

I just got scared with the stock market fluctuations and started thinking of options. But I know you are right. When you say dedicated bond holding, I take it you are not talking about bond index funds? bonds or government bonds? I like your way of thinking and I think another take away is to consi...
by Frugal Al
Fri Feb 12, 2016 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: SPIA/social security scenarios
Replies: 13
Views: 1149

Re: SPIA/social security scenarios

Although I agree with vested's position about optimizing the SPIA's, I'm not concerned about not optimizing them since there's no legacy intent. Also, by maximizing your SS and having a significant portfolio remaining, managing inflation shoudn't be a big concern. There is a lot of info we don't hav...
by Frugal Al
Thu Feb 04, 2016 7:43 am
Forum: Investing - Help with Personal Investments
Topic: Newbie, stuck in life insurance policy.
Replies: 18
Views: 1579

Re: Newbie, stuck in life insurance policy.

I know this forum does not like life insurance policy questions, but we are really confused about it and don't to where to go. There is no problem with life insurance policy questions on this forum; everyone here is glad to help. The cautionary advice with regard to life insurance threads is that s...
by Frugal Al
Sun Jan 31, 2016 8:35 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 2089
Views: 512924

Re: What Movie Have You Recently Watched?

I also enjoyed Ex Machina more than my wife. I don't think she appreciated me finding the humanoid attractive.:D
Also watched Big Eyes recently. A very different film for Tim Burton. As usual, Amy Adams was great. I'd give it a solid B. No special effects here, just a fascinating drama.
by Frugal Al
Wed Jan 27, 2016 4:18 am
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 1101

Re: Decreasing term life insurance linked to inflation?

Why would that be true? The company takes a fixed premium, to pay a fixed death benefit, and invests any early "over-payments" in fixed bonds. I don't see how inflation helps the company. Although life insurance companies practice a form of liability matching, it is imperfect due to the d...
by Frugal Al
Tue Jan 26, 2016 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 1101

Re: Decreasing term life insurance linked to inflation?

My Amica term life policy benefit is inflation adjusted. This policy has a fixed premium for the term of the policy. I did not pay extra for this. In fact, this policy was the lowest cost one I found from a decent credit rated insurer. You can call Amica at 800-234-5433 Interesting, EHE. How long i...
by Frugal Al
Tue Jan 26, 2016 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Decreasing term life insurance linked to inflation?
Replies: 20
Views: 1101

Re: Decreasing term life insurance linked to inflation?

MHC makes a good point: there are other ways to achieve your goal, at least somewhat. As to the reason there aren't polices designed with the attributes you seek, I suspect the chief reason is that inflation has a beneficial economic influence to the insurance company for most (virtually all) of the...

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