Search found 9 matches

by Nasrudin
Tue Mar 10, 2020 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Spendthrift annuity - who is the owner?
Replies: 0
Views: 333

Spendthrift annuity - who is the owner?

There have been a few threads about use of an annuity (versus a trust) for a spendthrift heir, especially where the dollar amount is comparatively small.

I'm unclear about the mechanics.

I understand the will would direct that a non-transferable and non-assignable annuity would be created out of the estate money, by the executor. The spendthrift heir is the beneficiary.

But who is the owner? The annuitant?

Would this be a one-time task for the executor, or would there need be a fiduciary/trustee remaining in the picture for the life of the annuity, (perhaps all the while paid a fee)?

I'll be grateful if someone can shed some light for me. Thank you.
by Nasrudin
Fri Apr 28, 2017 1:26 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 621
Views: 73695

something odd regarding EE bonds

[Merged Nasrudin's topic and its replies into this existing thread on the same topic - moderator prudent] Thought I would post here to see if I can get a second opinion about something that seems odd regarding EE bonds. 1. There is absolutely no point to holding them less than 20 years (when the one-time adjustment will make the investment double). 2. And there is practically no point to holding them more than 20 years. Although they can be held an additional 10 years (their final maturity is year 30), they will possibly/probably revert back to the original miniscule rate of return. https://www.treasurydirect.gov/instit/savbond/guide/guide_sbr_AppJ_Questions_and_Answers.pdf "Series EE savings bonds issued on or after May 1, 2005, will...
by Nasrudin
Fri Oct 31, 2014 4:29 am
Forum: Investing - Theory, News & General
Topic: Treasury Direct - only one beneficiary allowed
Replies: 6
Views: 1670

Treasury Direct - only one beneficiary allowed

FWIW, only one beneficiary is allowed in the registration of Treasury Direct bonds. I have two kids, and wanted to name them both. After an hour trying and retrying on the treasury direct website, then searching their help pages, then googling (and eventually feeling a tad frustrated, like a laboratory rat in a maze), I emailed treasury direct. Buried within the reply was this: "you can only name one beneficiary on each security. If you want to have both children as beneficiaries you will need to decide which child you want listed on which security. They cannot both be listed on the same securities." Wish they had put this somewhere in their help pages. So if you want your EE bonds or I-Bonds to be "Payable On Death" to ...
by Nasrudin
Sun Jun 16, 2013 12:09 pm
Forum: Personal Investments
Topic: advice re fixed income
Replies: 7
Views: 1114

Re: advice re fixed income

Thanks to all for the responses. It's more clear now, thanks
to the feedback. Funny how I need to be reminded of
simple concepts that seem to elude me when
a little bit of fear takes hold.

Thanks to this community I think I'll be able to wise up and
tune out the noise, especially the noise generated by
my own head. :happy

I will make a moderate adjustment, not to my basic
allocation, but between the bond-like investments.
And I'll go easy, and look at the total picture, recognizing
that with non-correlated assets, it's OK for one
to be going down (while another is going up).
by Nasrudin
Wed Jun 12, 2013 5:55 am
Forum: Personal Investments
Topic: advice re fixed income
Replies: 7
Views: 1114

advice re fixed income

Am rather new to this board, a late bloomer investor, age 60, with a smallish nest egg. Much of said egg is in a 401K that offers only a few choices. As a new convert, it was just a few months ago that I came up with my AA (roughly age in bonds), and made my investment selections. For low-risk fixed income vehicles, the available options are a TIPS fund, a Stable Value fund, Pimco Total Return, and a couple of junk bond funds. So I put about equal amounts (of the fixed income portion of my allocation) into the Stable Value, the Pimco, and the TIPS funds. During the few months since I set up my portfolio, I’ve watched the fixed income portion of my portfolio quickly lose several percentage points, Meanwhile, the higher risk stock side of my ...
by Nasrudin
Sun Jan 06, 2013 12:35 pm
Forum: Personal Investments
Topic: 401k choices are limited, can't be a purist
Replies: 11
Views: 1485

Re: 401k choices are limited, can't be a purist

Looks like I need to find out more about that Stable Value GIC
from Met Life. Not much opinion that I've found on the web.
Thanks to all for the replies.
by Nasrudin
Fri Jan 04, 2013 9:42 pm
Forum: Personal Investments
Topic: 401k choices are limited, can't be a purist
Replies: 11
Views: 1485

Re: 401k choices are limited, can't be a purist

Thanks to all for your help. It's all rather new to me.
I appreciate the feedback.
by Nasrudin
Fri Jan 04, 2013 7:13 pm
Forum: Personal Investments
Topic: 401k choices are limited, can't be a purist
Replies: 11
Views: 1485

Re: 401k choices are limited, can't be a purist

Thanks john94549, you reminded me that I can eventually roll this 401k into an IRA.
Nice to think I don't have to live with these choices for so long!
by Nasrudin
Fri Jan 04, 2013 12:53 pm
Forum: Personal Investments
Topic: 401k choices are limited, can't be a purist
Replies: 11
Views: 1485

401k choices are limited, can't be a purist

My choices are limited. Need to prioritize: Allocation and Diversification vs Expense Ratios. I'm a beginner. Till now I've had the 401k in TIPS and a Stable Value fund, simply because I haven't found the time to learn about investing. But now I've got time to study. After a bit of research, I'm onboard with Bogle. Unfortunately I'm forced to reconcile less-than-ideal choices in investment vehicles. At 60, and with a rather small nest egg of around $150K, I'd like to just keep it safe. I think "own one's age in bonds" i.e. 40/60, would be a tad risky. 30/70 might be better. (Just my particular mindset, different strokes, etc.) This based on a buy-and-hold of around twenty years. The 401k will not be touched, hopefully, until I'm i...