Search found 134 matches

by Raabe34
Mon Jun 19, 2017 12:53 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront ignores own advice; adds Smart-Beta
Replies: 24
Views: 2364

Re: Wealthfront ignores own advice; adds Smart-Beta

Betterment is not close to profitability either. Morningstar had a good piece written maybe 2 years ago now.

The way I see it, it's almost impossible for them to ever achieve profitability and they're just trying to look good enough to get bought.
by Raabe34
Mon Jun 19, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Bonus, in bitcoin
Replies: 21
Views: 1796

Re: Bonus, in bitcoin

Depending on the size/type of company, my gut says is that they are trying avoid taxation in sort by doing this. If your spouse likes the job tread lightly through this.
by Raabe34
Fri Jun 16, 2017 9:46 am
Forum: Investing - Theory, News & General
Topic: Wealthfront ignores own advice; adds Smart-Beta
Replies: 24
Views: 2364

Re: Wealthfront ignores own advice; adds Smart-Beta

It's amazing to me that all these robo-advisors seem to be growing at a very good pace, and it seems that traditional money-management firms are taking it on the chins. I don't know how the latter can survive. I disagree. Do the math on the robos, they are burning extremely quickly through their ve...
by Raabe34
Wed Jun 14, 2017 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Expenses out of line?
Replies: 16
Views: 541

Re: 401k Expenses out of line?

For a smaller plan like that it is most likely not out of line. Typically a plan that size puts all the costs of operating the plan on participants vs the company writing a check for some of that administration work. You'll be in at around 1% annual cost which is not the end of the world. Another op...
by Raabe34
Tue Jun 13, 2017 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Who takes financial chances and why is this forum so financially conservative?
Replies: 139
Views: 11746

Re: Who takes financial chances and why is this forum so financially conservative?

The thing that doesn't get enough play on this board is inflation. Not everyone should be 100% equity but over a standard 20yr retirement costs will double. That post with the 30 something in a 60-40 is just wrong. If he retires he should have cash for 2 years expenses and be out there much further ...
by Raabe34
Tue Jun 13, 2017 12:10 am
Forum: Investing - Help with Personal Investments
Topic: evaluating a prospective real estate investment
Replies: 10
Views: 852

Re: evaluating a prospective real estate investment

An IRA is most likely a poor option. You lose the depreciation deduction forever and the ability to sell it at capital gains rates later.
by Raabe34
Mon Jun 12, 2017 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Small company 401k
Replies: 30
Views: 1613

Re: Small company 401k

Depending on just what everyone is trying to accomplish you might be able to get it done with a simple. It has lower limits but no cost to administer. That can be setup direct with Vanguard.
by Raabe34
Thu Jun 08, 2017 12:21 pm
Forum: Investing - Theory, News & General
Topic: Chicagoan, 98, donates Walgreen stock bought decades ago.
Replies: 20
Views: 2937

Re: Chicagoan, 98, donates Walgreen stock bought decades ago.

so when shares are donated to company X or person X and they sell them, how does the cost basis work? Would it have been better to donate them after his death via TOD (or something similar) for a stepped up basis? saving the recipient some tax $$? It's not a person or company in this case but a 501...
by Raabe34
Thu Jun 08, 2017 11:13 am
Forum: Investing - Theory, News & General
Topic: Chicagoan, 98, donates Walgreen stock bought decades ago.
Replies: 20
Views: 2937

Re: Chicagoan, 98, donates Walgreen stock bought decades ago.

Born in 1919. Served in WW2. Retired early at 45 in 1964 (among the worst years to retire). 53 years in retirement. Donated to help the environment. Not too shabby! (He gets a pass for holding a concentrated position) I may have missed it in the article but I didn't see anything else on it so I'm g...
by Raabe34
Wed Jun 07, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Strange 401k Plan?
Replies: 4
Views: 416

Re: Strange 401k Plan?

You need to ask for a copy of your 404 a 5 participant disclosure. That should spell out all the parties and corresponding cost.

My gut says what you are paying are recordkeeping and custodial charges.
by Raabe34
Sat Jun 03, 2017 10:54 am
Forum: Investing - Help with Personal Investments
Topic: Financial advisor in Houston
Replies: 11
Views: 1428

Re: Financial advisor in Houston

http://www.garrettplanningnetwork.com/

Try using this. They have some really good apples.
by Raabe34
Wed May 24, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: First attending level job but no 401k offered. What are the options?
Replies: 14
Views: 1403

Re: First attending level job but no 401k offered. What are the options?

I would be pretty skeptical of that Guideline firm. Per their ADV they only have $56 Mil in assets and 1,200 participants. So best case their current revenue is a bit over 115k if they haven't discounted some bigger plans. That is not even close to sustainable in the intermediate term.
by Raabe34
Sat May 20, 2017 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Use 529 Money Or Not?
Replies: 19
Views: 1510

Re: Use 529 Money Or Not?

Do you have other kids that you could use the 529 on? If not clean that out and avoid paying taxes on it.
by Raabe34
Sat May 20, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone know what "book" an advisor or insurance salesperson would offer to buy for a prospective client?
Replies: 26
Views: 1503

Re: Anyone know what "book" an advisor or insurance salesperson would offer to buy for a prospective client?

neurosphere wrote:
ObliviousInvestor wrote:If I had to guess, this would be my guess:
http://www.nickmurray.com/bkwealth.htm


Yeah, that would seem one likely candidate, yes.



If it is anything other than that book its a sales pitch.
by Raabe34
Fri May 19, 2017 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Additional Tax Savings for Employed High Earner?
Replies: 9
Views: 685

Re: Additional Tax Savings for Employed High Earner?

I know this is not popular on this forum but you really ought to think about using a non-qualified variable annuity from Vanguard. It's 30bps for the cost which seems like a heck of a deal in situation. It allows tax deferral into perpetuity and allows you to manage the account without thinking abou...
by Raabe34
Tue May 16, 2017 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Take a reduction in pension?
Replies: 23
Views: 1538

Re: Take a reduction in pension?

If you really feel the need, shop some term life for 10 years and see the difference in payout levels.
by Raabe34
Tue May 09, 2017 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Lending
Replies: 11
Views: 1021

Re: Portfolio Lending

Try a small community bank. You should be able to pledge the securities if in a taxable account by some sort of form with Vanguard.
by Raabe34
Tue May 09, 2017 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: How to get out of Variable Universal Life Insurance (8 months in)
Replies: 19
Views: 875

Re: How to get out of Variable Universal Life Insurance (8 months in)

Hi all, 1. Surrender the policy now, and take the $1200 cash surrender value (I will have lost $2800 - not the end of the world, but still annoying). Sunk Cost, need to move on and get what you can currently. The sooner the better. He will fight you on it because he will be charged back against his...
by Raabe34
Tue May 02, 2017 10:33 pm
Forum: Personal Finance (Not Investing)
Topic: Rental property
Replies: 8
Views: 1036

Re: Rental property

Define breakeven. I'm guessing you're making some moves down on principal. Otherwise you would have to be getting the deduction based on depreciation. The idea of paying down a bunch is not bad I've done the same as it's a guaranteed rate of return and you could most likely re-lever the property if ...
by Raabe34
Sat Apr 29, 2017 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Questions
Replies: 8
Views: 1131

Re: Life Insurance Questtions

I'm guessing that 5% guarantee is an income rider (pretend balance) and not on the actual account balance. I'm not sure about the details of an ilit but you have the ability to 1035 to a non-qualified annuity that will keep the balance tax deferred. Then you can control when to generate some or all ...
by Raabe34
Sat Apr 29, 2017 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Recent windfall... Insurance questions (Whole, Term, Disability)
Replies: 26
Views: 1622

Re: Recent windfall... Insurance questions (Whole, Term, Disability)

Should we increase my whole life to $500k? Absolutely not. If you feel the need for more go term. End the cash value policy immediately. - Should we start a $500k whole life for my wife? Absolutely not. - Should we increase our sons? (Perhaps from $100k to either $250k or $500k? We see this as a nic...
by Raabe34
Fri Apr 28, 2017 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth- Did I do it wrong?
Replies: 28
Views: 1962

Re: Backdoor Roth- Did I do it wrong?

You need to do a recharacterization of the conversion to basically undo it(if you did it in 2017). Most 401k plans allow a rollover into them anymore.
by Raabe34
Fri Apr 28, 2017 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth- Did I do it wrong?
Replies: 28
Views: 1962

Re: Backdoor Roth- Did I do it wrong?

100% sure you did it wrong. Need to clean that IRA out into your current 401k if you want to do it.
by Raabe34
Thu Apr 27, 2017 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Helping adult children
Replies: 81
Views: 8408

Re: Helping adult children

Wasn't trying to start something but I've literally been in the same situation. I got through cheap school in 3.5 years and my sister spent 4 years @ a private school. We get along great and it isn't an everyday issue but that's nearly 20 years ago and still remember.
by Raabe34
Thu Apr 27, 2017 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Helping adult children
Replies: 81
Views: 8408

Re: Helping adult children

Two of my parents' children became physicians and one a school teacher. All education costs for the children were paid by parents. The medical education costs were higher than the non medical education. All children were happy that parents paid for the education. There was no separate payment made ...
by Raabe34
Wed Apr 26, 2017 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: How hard is it for company to amend 401k plan?
Replies: 3
Views: 328

Re: How hard is it for company to amend 401k plan?

200-1000 is an accurate range for the update. The reason they didn't explain why tfb said it would be a poor idea is that it effects compliance of the whole plan. So you can read IRS regs and see that anyone should be able to contribute up to 18,000 right? Well that's not always the case. If someone...
by Raabe34
Tue Apr 25, 2017 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Employer 401(k) Liability
Replies: 13
Views: 958

Re: Employer 401(k) Liability

Erisa stone - I was not clear. I am concerned about fiduciary liability related to the 401k. Will choosing index funds only (across the key asset classes) and target date funds (which are comprised of index funds) be the best way to minimize any fiduciary liability risk? Will I need a financial adv...
by Raabe34
Mon Apr 17, 2017 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts about de-risking 529 investment allocation
Replies: 9
Views: 710

Re: Thoughts about de-risking 529 investment allocation

I would be extremely leery of putting anywhere that amount into TIPS. The inception to date returns on TIPS is 0.22%. I have no faith in their ability to keep pace with inflation and you still have some volatility. I think you're way to conservative and trying to time the thing. The move to the mode...
by Raabe34
Thu Mar 16, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 4518

Re: S corp - 401K plan - profit sharing

The answer to that is no but depending on how wages and ages are structured you should be able to get it weighted very heavily to the insiders. A good TPA should be running different scenarios for you. If you're doing Safe Harbor matching that will help that calc also. That won't do you any good for...
by Raabe34
Tue Feb 21, 2017 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with Gold?
Replies: 17
Views: 1891

Re: What to do with Gold?

In holding that gold in an ETF you run into a problem called contango . Look that up and see if you still want to hold it in that manner. I would feel different if you had physical gold but you can't win with etf 's. According to their websites, both ETFs OP mentions, the SPDR Gold Trust , GLD, and...
by Raabe34
Tue Feb 21, 2017 12:01 am
Forum: Investing - Help with Personal Investments
Topic: What to do with Gold?
Replies: 17
Views: 1891

Re: What to do with Gold?

In holding that gold in an ETF you run into a problem called contango . Look that up and see if you still want to hold it in that manner. I would feel different if you had physical gold but you can't win with etf 's. According to their websites, both ETFs OP mentions, the SPDR Gold Trust , GLD, and...
by Raabe34
Mon Feb 20, 2017 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with Gold?
Replies: 17
Views: 1891

Re: What to do with Gold?

In holding that gold in an ETF you run into a problem called contango. Look that up and see if you still want to hold it in that manner.

I would feel different if you had physical gold but you can't win with etf's.
by Raabe34
Mon Feb 20, 2017 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: The need for bonds if I have a pension?
Replies: 43
Views: 3205

Re: The need for bonds if I have a pension?

My wife teaches in Nebraska and I'm extremely familiar with the pension so I'm going to assume it's similar to your situation. In this case it is an obligation of the state so if that would become an issue I assume the value of most of the other of our assets is wrecked. So yes in our overall AA we ...
by Raabe34
Fri Feb 17, 2017 1:01 am
Forum: Investing - Help with Personal Investments
Topic: Gold vs 401k
Replies: 45
Views: 3217

Re: Gold vs 401k

Yes please buy gold. I will enjoy less dollars going into the market over your lifetime so I can buy cheaper.
by Raabe34
Fri Feb 17, 2017 12:44 am
Forum: Personal Finance (Not Investing)
Topic: 20% low-risk one month return from Thrift Conversions (bank demutualization/IPOs)
Replies: 10
Views: 1170

Re: 20% low-risk one month return from Thrift Conversions (bank demutualization/IPOs)

I did this about 5 years ago with a local bank. It worked out to just short of 100% in return in about a year and I sold then.
by Raabe34
Thu Feb 09, 2017 11:03 am
Forum: Investing - Help with Personal Investments
Topic: backdoor Roth...
Replies: 8
Views: 822

Re: backdoor Roth...

Do you do any freelance work, or lawnmowing ect? If you do you can establish and I401k and then roll it into that plan also.

Taxes on 17k would be notable but not burdensome.
by Raabe34
Thu Feb 09, 2017 10:40 am
Forum: Investing - Help with Personal Investments
Topic: backdoor Roth...
Replies: 8
Views: 822

Re: backdoor Roth...

Think a bit outside the box on your 17k IRA. Is your employer 401k plan decent? If so you could roll it into the plan to avoid having to convert that whole amount and then you're scott free for the back door. In regards to will they close it? Who cares it's open now and they've floated lots of ideas...
by Raabe34
Thu Feb 09, 2017 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Opinions
Replies: 5
Views: 580

Re: Life Insurance Opinions

Run the scenarios with and without the return of premium rider. If you do basic math against it you'll see that your increase in premiums for the rider won't be worthwhile.
by Raabe34
Tue Feb 07, 2017 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Question about ML trading practices
Replies: 11
Views: 976

Re: Question about ML trading practices

I've seen this before. The best explanation I have developed for myself is that no one is really trading your friend's account. Your friend's $2m gets added to an existing pot of other accounts that have signed up for the same strategy. So, say we have a total of $200m. That $200m is traded as a si...
by Raabe34
Wed Jan 25, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Independent contractor solo 401k
Replies: 8
Views: 483

Re: Independent contractor solo 401k

Not a specific answer to your questions but overall: Are you using a CPA? It doesn't appear so. If not I would highly recommend it and interview one with those questions and if you don't buy the answers move on to the next one. A good CPA will save you more than they cost.
by Raabe34
Mon Jan 23, 2017 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Penalty for making early withdrawal - 401k discrimination test
Replies: 8
Views: 1038

Re: Penalty for making early withdrawal - 401k discrimination test

I'm guessing that you do not have your 1099 from it yet. That should give you the correct 1099 code.

BUT, a ton of those get send out wrong. You'll need to change the code on the software.
by Raabe34
Sat Jan 21, 2017 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: rebalance or too late
Replies: 9
Views: 1259

Re: rebalance or too late

What you're talking about with "should we be looking to change the security mix to something less risky or is it too late?" is not a question based around rebalancing but an overall allocation question. The rebalancing should be done no matter what. The other question you should really exa...
by Raabe34
Sat Aug 06, 2016 10:07 pm
Forum: Investing - Theory, News & General
Topic: Betterment Question
Replies: 5
Views: 1038

Re: Betterment Question

So in reading it, yes there is SIPC coverage above what would be recovered from the custodian up to 500k. Betterment says there is no chance that anything negative could happen but that same was the story about Madoff. Also for those that don't remember, Knight Capital was the backend of a bunch of ...
by Raabe34
Sat Aug 06, 2016 10:21 am
Forum: Investing - Theory, News & General
Topic: Betterment Question
Replies: 5
Views: 1038

Re: Betterment Question

bump please.
by Raabe34
Fri Aug 05, 2016 5:08 pm
Forum: Investing - Theory, News & General
Topic: Betterment Question
Replies: 5
Views: 1038

Betterment Question

I know this is the place of the smartest people on the planet so I'm hoping for some help. Was looking at Betterment as a possibility and have a major question. If you go to their website they say that they custody with Betterment Brokerage Services. Does this mean an account there would only be cov...
by Raabe34
Wed Feb 22, 2012 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security
Replies: 3
Views: 536

Re: Social Security

Thanks a lot. If you wouldn't mind answering one more question. Just off the cuff he would probably be better off with the spousal claim in a year and deferring his own for a couple more years. The income is not needed in order to pay bills.
by Raabe34
Wed Feb 22, 2012 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security
Replies: 3
Views: 536

Social Security

Quick question from a conversation with my father in law. He is 65 and will work for around another 2 years. His wife is 62 and retired and drawing Social Security. He was talking about claiming his ss but I told him to look into claiming a spousal for a little while longer while his benefit grows p...

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