Search found 820 matches

by ThePrune
Fri Apr 21, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: The Value of Debt in Retirement
Replies: 16
Views: 1302

Re: The Value of Debt in Retirement

Intriguing, but wouldn't work in my case since almost all my wealth is in Qualified Plans, trad. IRAs or Roth IRAs. Once any of these is used as collateral, "legally" the IRS considers you to have withdrawn the funds from the accounts and owe to all applicable taxes.
by ThePrune
Tue Apr 18, 2017 6:26 am
Forum: Investing - Help with Personal Investments
Topic: Leaving Edward Jones...where to start?
Replies: 4
Views: 602

Re: Leaving Edward Jones...where to start?

As a former EJ client who transferred all family accounts to Vanguard, there is one further detail that applied to me and might apply to you as well. Besides the account closure fees (unavoidable) EJ also charges annual account fees. But these annual account fees are waived if you have enough invest...
by ThePrune
Thu Apr 13, 2017 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Most sophisticated tax software?
Replies: 6
Views: 635

Re: Most sophisticated tax software?

Although I've not used it personally, many retirement planners I respect like to use BNA Income Tax Planner. You might want to Google it's website and read about its capabilities.
by ThePrune
Sat Apr 08, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: Looking for a source to analyze Fixed Index/Equity Indexed Annuities
Replies: 18
Views: 992

Re: Looking for a source to analyze Fixed Index/Equity Indexed Annuities

Therefore, what I am looking for specifically if anyone knows of a resource to analyze his annuities and provide and informed analysis. There are companies that supply such an analysis for whole life insurance policies and for variable annuities, but I've found none that perform independent analyse...
by ThePrune
Thu Apr 06, 2017 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuity
Replies: 12
Views: 659

Re: Fixed Indexed Annuity

One of them is Fidelity and Guaranty Life Safe Income and the other one is Nationwide New Heights 9 fixed indexed annuity. I've performed detailed simulations of FIAs from both Fidelity and Guaranty and from Nationwide, but it's been a few years for both. Neither was as good as (odds were very high...
by ThePrune
Thu Apr 06, 2017 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuity
Replies: 12
Views: 659

Re: Fixed Indexed Annuity

First, lets be clear why the insurance agent is recommending fixed index annuities to your boyfriend. The agent will earn between 6% - 8% of the dollar amount invested if they can sell an index annuity, but only 2%-3% if they sell a more typical annuity. Since insurance agents have no legal obligati...
by ThePrune
Wed Apr 05, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Income Annuity Question
Replies: 2
Views: 340

Re: Deferred Income Annuity Question

I'm not sure from your posting if you are entirely clear about what you are seeking to learn. But that's fine! Often you have to do some poking around with financial stuff to even begin to learn what you should actually be asking. Lets get things started with a pension annuity comparison by answerin...
by ThePrune
Tue Apr 04, 2017 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefit
Replies: 10
Views: 1148

Re: Social Security Spousal Benefit

I am wondering if there may be a surprise of some kind that I am overlooking. For example, she works part time and will earn about $25,000 in 2017. Anytime you deal with changes in Social Security benefits it is worthwhile to run a trial calculation of your federal taxes owed. In some cases the mar...
by ThePrune
Tue Apr 04, 2017 7:35 am
Forum: Personal Finance (Not Investing)
Topic: withdrawal of Roth conversions made before 5 years ago vs. after
Replies: 5
Views: 679

Re: withdrawal of Roth conversions made before 5 years ago vs. after

Refer to the IRS form 8606 Instructions! The section that covers line 22 has the information you seem to be asking about.
by ThePrune
Sun Apr 02, 2017 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning Today Course
Replies: 15
Views: 1240

Re: Retirement Planning Today Course

I have both good and bad to say about this class that I took about 2 years ago. First, it was developed and is marketed as a business development tool for registered Investment Advisor Representatives (IARs). As of about 2 years ago they paid about $4,000 for the exclusive rights to a "market r...
by ThePrune
Sat Apr 01, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: Why do REITs have high growth if housing only keeps up with inflation?
Replies: 19
Views: 1745

Re: Why do REITs have high growth if housing only keeps up with inflation?

The real estate that only keeps up with inflation is personally owned homes. Unlike commercial property, it doesn't generate any ongoing rental/lease income to give a bump to returns. I've seen plots that separate out REIT index fund returns into a capital appreciation component (which would also ap...
by ThePrune
Wed Mar 29, 2017 4:05 am
Forum: Investing - Theory, News & General
Topic: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?
Replies: 21
Views: 1175

Re: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?

How do you calculate the post-tax value for the taxable account though? I suppose if you are using average cost-basis this would be reasonable, but anything else would be a real pain to keep track of, no? Great question, since I didn't address this. As a pre-RMD retiree the only funds now left in m...
by ThePrune
Tue Mar 28, 2017 8:46 pm
Forum: Investing - Theory, News & General
Topic: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?
Replies: 21
Views: 1175

Re: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?

Sorry for the delay in answering your question. I perform all the calculations using an Excel spreadsheet which I custom developed for this purpose. If you have some spreadsheet design experience, the following description should be enough to guide you through. (1st) decide on the asset classes and ...
by ThePrune
Mon Mar 27, 2017 4:46 pm
Forum: Investing - Theory, News & General
Topic: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?
Replies: 21
Views: 1175

Re: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?

Although I keep track of my AA both ways, my working rebalance bands are based on my effective, after-tax account values.
by ThePrune
Mon Mar 27, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 159
Views: 19944

Re: Illusion of poverty/wealth

Another interesting Behavioral Finance article by the team at UCLA Anderson school.
by ThePrune
Mon Mar 27, 2017 2:54 pm
Forum: Investing - Theory, News & General
Topic: Annuity to defer interest income
Replies: 11
Views: 907

Re: SPIA to defer interest income

Good question. I mean a product for which you make a single purchase and get a single payment an intermediate time in the future such as 5-10 years. I thought this could be considered both a single premium intermediate annuity (SPIA) or a deferred annuity but I may be confused, having never bought ...
by ThePrune
Sat Mar 18, 2017 5:21 am
Forum: Personal Finance (Not Investing)
Topic: Using the Fidelity Rewards Visa in Europe?
Replies: 20
Views: 1775

Re: Using the Fidelity Rewards Visa in Europe?

I used my Fidelity card in France, Germany and Czech Republic last Sept. without problems. The card shows up as a "chip and signature" card, so merchant has you sign rather than enter pin. For getting cash at bank ATMs, I did have to enter the card's PIN, so make sure you have that memoriz...
by ThePrune
Sat Mar 11, 2017 10:55 am
Forum: Personal Finance (Not Investing)
Topic: HSA's - I Didn't Know This!
Replies: 0
Views: 559

HSA's - I Didn't Know This!

Here's the Learning: Starting at age 65 you can use Health Savings Account (HSA) funds to pay for your portion of premiums associated with employer sponsored retiree health insurance. Based on IRS Publication 969 (Health Savings Accounts and Other Tax-Favored Health Plans) I previously knew that you...
by ThePrune
Sun Aug 21, 2016 11:19 am
Forum: Personal Finance (Not Investing)
Topic: annuity with long term care benefits
Replies: 10
Views: 861

Re: annuity with long term care benefits

the advisor explained that the fixed deferred annuity is built on a whole life chassis. the interest rate he quoted me was 4% on the annuity. I looked at the information in the links you supplied. Your adviser explained WRONG. There is no annuity involved. This is a life insurance contract with a r...
by ThePrune
Sat Aug 20, 2016 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: annuity with long term care benefits
Replies: 10
Views: 861

Re: annuity with long term care benefits

If my previous post seemed too negative, let me suggest that there are some types of FIXED annuity (FA) products that do offer reasonable LTC protection, but without much inflation protection. Here we are talking about DEFERRED fixed annuities - you won't access those funds until you need LTC (that ...
by ThePrune
Sat Aug 20, 2016 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: annuity with long term care benefits
Replies: 10
Views: 861

Re: annuity with long term care benefits

I won't go into any more details because everybody's situation is different. so here's the link: https://www.oneamerica.com/products-services/individuals-long-term-care-solutions/annuities/ltc-annuities The link provides VERY LITTLE useful information. What is really needed is either (1) a Sample C...
by ThePrune
Wed Jul 08, 2015 6:54 pm
Forum: Personal Consumer Issues
Topic: Worst financial book you have read (or will admit you have read)
Replies: 94
Views: 13026

Re: Worst financial book you have read (or will admit you have read)

The Barefoot Retirement Plan: Safely Build a Tax-Free Retirement Plan - Doyle Shuler I think that most Bogleheads just are't aware of just how BAD these Indexed Universal Ilfe Insurance (IULi) books truly are :twisted: The sad thing is that Indepenent Maketing Organizations (IMO's) for insurance ag...
by ThePrune
Tue Jul 07, 2015 6:45 pm
Forum: Personal Consumer Issues
Topic: Worst financial book you have read (or will admit you have read)
Replies: 94
Views: 13026

Re: Worst financial book you have read (or will admit you have read)

InvestorAdam wrote:The "Retirement Miracle" a book about a tax-free retirement using indexed universal life.

+1
I can't believe someone else here had even read this miserable book! I wrote a scathing review for Amazon.com.
by ThePrune
Tue Jul 07, 2015 3:37 pm
Forum: Investing - Theory, News & General
Topic: Excel Monte Carlo
Replies: 12
Views: 2020

Re: Excel Monte Carlo

To get by this problem, I've created a bin that goes from -3.4, -3.3, -3.2 ....... 2.9, 3 . Each z score is then multiplied by the sample stdev of historical returns, added to the mean and a bin is created. From this, I generate random numbers and then vlookup the returns . Others have largely igno...
by ThePrune
Sat Aug 30, 2014 12:51 pm
Forum: Investing - Theory, News & General
Topic: Style Box breakdown of U.S. companies
Replies: 5
Views: 624

Re: Style Box breakdown of U.S. companies

Um, why? The data are for an adult education class I teach on investing (from a Bogleheads perspective, naturally). I like class participants to clearly understand just how few U.S. companies make up the "large cap" universe while how many companies make up the "smaller cap" uni...
by ThePrune
Thu Aug 28, 2014 5:28 pm
Forum: Investing - Theory, News & General
Topic: Style Box breakdown of U.S. companies
Replies: 5
Views: 624

Style Box breakdown of U.S. companies

Several years ago I had found a breakdown of the number of U.S. companies that were located in each of the Morningstar equity style box cells for the total U.S. equity market. I'm interested a similar breakdown as of this year, 2014. In other words, how many: Large+Mega cap Value companies, Large+Me...
by ThePrune
Thu Aug 28, 2014 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 3977

Re: Life insurance with Long term care rider

technovelist wrote:And I probably wouldn't have bought the policy just for the "LTCI" benefit. But given that:
1. I really HATE the official LTCI contracts and wouldn't buy one for that reason, and
2. I needed new life insurance anyway,

this seemed like a nice "freebie".

I like your reasoning!
by ThePrune
Wed Aug 27, 2014 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 3977

Re: Life insurance with Long term care rider

However, for my plan to fail, I have to live past 85 outside a nursing home, then have to go into a nursing home after that age. I think the probability of that is fairly low. Since you have actuarial background, I refer you to the Society of Actuaries 1987 - 2007 Long Term Care and Intercompany Re...
by ThePrune
Tue Aug 26, 2014 4:16 pm
Forum: Investing - Theory, News & General
Topic: Any good studies on active vs. passive BEFORE fees?
Replies: 10
Views: 1197

Re: Any good studies on active vs. passive BEFORE fees?

After various fees are involved, the superiority of passive investing seems fairly obvious. But to satisfy my curiosity, how do active funds fare before these fees are deducted? Two academic research papers published in the Journal of Finance in 2010 performed this exact analysis for U.S. equity mu...
by ThePrune
Tue Aug 26, 2014 4:08 pm
Forum: Investing - Theory, News & General
Topic: How would one analyze the claim "American Funds Outperform"
Replies: 4
Views: 1098

Re: How would one analyze the claim "American Funds Outperfo

Now: how would one analyze that claim? Not critique the sloppy methods of the paper, but rather analyze the assertion from the ground up? If you are really interested in this topic, why not take a look at Bernd Fisher and Russ Wermer's book Performance Evaluation and Attribution of Security Portfol...
by ThePrune
Tue Aug 26, 2014 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 3977

Re: Life insurance with Long term care rider

I have a TERM, not UL, policy with Prudential that has this rider; the UL policies also have it. My understanding (and I have read the policy) is as follows: 1. There is NO additional premium for the rider. That is possible because the rider provides for early payment of the death benefit (after ac...
by ThePrune
Sat Aug 23, 2014 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 3977

Re: Life insurance with Long term care rider

So I'm trying to make a decision about Long term care insurance. I've read all the horror stories of not having it and the statistical information of why I will definitely need it down the road. I totally admit that I've been hesitate, the price is crazy expensive and I hate the "use it or los...
by ThePrune
Sat Aug 23, 2014 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 3977

Re: Life insurance with Long term care rider

I am not selling these policies yet, but the more I review I sorta like them. However, to make them harder to understand they tie crediting rates to index returns, similar to Equity Index Annuities. These policies have the ability to use better performing illustrations than a typical Universal Life...
by ThePrune
Fri Aug 22, 2014 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 3977

Re: Life insurance with Long term care rider

The Policy is called a Prulife universal protector. Type A (fixed) death Benefit with a Benefit Access rider. quote from the summary report "The benefitaccess Rider advances up to 100% of the policy's death benefit in the event that the insured becomes chronically ill as certified by a license...
by ThePrune
Fri Aug 22, 2014 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 3977

Re: Life insurance with Long term care rider

camptalcott , we'll be able to give more knowledgeable advice after you tell us the specific name of the Prudential life insurance policy and the name of the long term care rider. I could spout off some generalities right now without this information, but frankly it would likely be a waste of time ...
by ThePrune
Mon Aug 18, 2014 6:03 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Index vs American Funds?
Replies: 45
Views: 18993

Re: Vanguard Index vs American Funds?

tibbitts wrote: But don't you need $1MM in each fund to waive sales charges, not just $1MM total?

No, American Funds calculates breakpoints for front-load sales charge reductions based on total investments across all mutual funds within the American Funds family.
by ThePrune
Sun Aug 17, 2014 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Index vs American Funds?
Replies: 45
Views: 18993

Re: Vanguard Index vs American Funds?

American Funds has 7 funds that invest only in US Large Cap stocks. I did some research on the 30-year, 20-year, and 10-year real returns (after fees subtracted) of these funds vs. the Vanguard 500 Index Admiral (VFIAX). Strictly speaking it isn't correct to compare most American Funds large cap mu...
by ThePrune
Sun Aug 17, 2014 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Index vs American Funds?
Replies: 45
Views: 18993

Re: Vanguard Index vs American Funds?

I am planning on investing a lump sum on money in US Large Cap stocks and holding on to these investments for the next 20-30 years. After reading various books on investing, it seemed to me that low-cost index funds are the way to go. However, my investment adviser recommended the actively managed ...
by ThePrune
Thu Aug 14, 2014 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred Income Annuity
Replies: 12
Views: 1685

Re: Deferred Income Annuity

Strictly speaking its hard to give you the optimal advice without knowing more about your total situation. But if your goal is to arrange for a portion of your fixed income allocation to receive a guaranteed and competitive annual interest, then you've got options beyond just Deferred Income Annuiti...
by ThePrune
Wed Aug 13, 2014 2:38 pm
Forum: Investing - Theory, News & General
Topic: Mutual-fund-only accounts more secure, in one way?
Replies: 17
Views: 2074

Re: Mutual-fund-only accounts more secure, in one way?

It is not necessary to have a brokerage account in order to own mutual funds . As far as I know, every mutual fund company lets you open an account directly with the fund company. Typically such an accounts have no transaction fees, but of course only allow purchases and exchanges within a single f...
by ThePrune
Tue Aug 12, 2014 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Too Good to be True? Universal Life
Replies: 11
Views: 1490

Re: Too Good to be True? Universal Life

Are you allowed to "deposit" $100K into it without turning it into a MEC? Since it's a Universal Life policy, the issuer could potentially take the simple step of increasing the policy face value until the cash value fits within the legally allowed "cash value corridor". (I know...
by ThePrune
Tue Aug 12, 2014 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Too Good to be True? Universal Life
Replies: 11
Views: 1490

Re: Too Good to be True? Universal Life

I agree that the very first action you should take is to request an illustration for the addition of the $100,000. Pay careful attention to whether this group plan imposes a "front-end expense load" on the $100,000 and how large the loading is. Being a group plan, the loading might be &quo...
by ThePrune
Sun Aug 10, 2014 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Help me figure out how to sell investment advice legally
Replies: 12
Views: 2388

Re: Help me figure out how to sell investment advice legally

Once you have clients in enough states (I think 20) then you can register with the SEC and you won't have to register in every state. Recent rules changes (in 2010 I think) have changed the dividing point for Investment Advisory supervision between states and the SEC to $100 Million of assets under...
by ThePrune
Sun Aug 10, 2014 7:01 am
Forum: Investing - Theory, News & General
Topic: Spreadsheet calculating returns of IUL / 7702 Pension Plan
Replies: 19
Views: 5332

Re: Spreadsheet calculating returns of IUL / 7702 Pension Pl

There's one reason an insurance plan might actually help some people: participation rates. http://s.wsj.net/public/resources/MWimages/MW-BF011_401k_r_MD_20130703105500.jpg The insurance is a type of forced savings: you've got to keep up with the premiums . I have trouble roundly critiquing 7702/IUL...
by ThePrune
Sat Aug 09, 2014 9:27 pm
Forum: Investing - Theory, News & General
Topic: Spreadsheet calculating returns of IUL / 7702 Pension Plan
Replies: 19
Views: 5332

Re: Spreadsheet calculating returns of IUL / 7702 Pension Pl

It's been a month since I wrote to Professor Jon Abraham, and still no response of any type. So probably nothing will be forthcoming. I've been doing some more reading of my own on the topic of IUL policies and rules-of-thumb for estimating their ACTUAL long-term prospective returns. I highly recomm...
by ThePrune
Sat Aug 09, 2014 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Taxed on a [Whole-Life Insurance] Benefit??
Replies: 2
Views: 682

Re: Taxed on a [Whole-Life Insurance] Benefit??

Details of the policy: Excel 100 Standard Tax-Qualified Life (fixed premium universal whole life) Since this life insurance policy was contained within a Qualified Plan (for example a Profit Sharing or 401k retirement plan), the death benefits are no longer tax exempt. If you want to learn more, re...
by ThePrune
Sat Aug 09, 2014 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Help me figure out how to sell investment advice legally
Replies: 12
Views: 2388

Re: Help me figure out how to sell investment advice legally

I'm not surprised that folks have been hesitant to offer advice, since your question is fundamentally a legal one. Nevertheless I'll give you some guidelines on how to get at a valid answer to your questions. First (and most importantly), you must take the time to learn about the securities and inve...
by ThePrune
Sat Aug 09, 2014 9:06 am
Forum: Investing - Theory, News & General
Topic: American Funds' Active Investing Whitepaper
Replies: 22
Views: 3971

Re: American Funds' Active Investing Whitepaper

. The earlier linked American Funds paper asks the question “Has American Funds added Value?” IMO a more ‘accurate’ test than the paper presents is to look at the ‘alphas’ from a Fama-French three factor analysis of the funds. A positive alpha indicates ‘value added’ beyond factor exposure, while a...
by ThePrune
Sat Aug 09, 2014 9:01 am
Forum: Investing - Theory, News & General
Topic: American Funds' Active Investing Whitepaper
Replies: 22
Views: 3971

Re: American Funds' Active Investing Whitepaper

In additional news, Capital Group, the manager of American Funds, has recently filed a petition with the SEC for issuing ETFs. See this article ---> American Funds ETF Filing A Very Big Deal | ETF.com for further details. Thanks for the article link. I was unaware of how SEC petitioners were propos...
by ThePrune
Wed Aug 06, 2014 5:40 am
Forum: Personal Finance (Not Investing)
Topic: HDHP vs PPO (least bad choice)
Replies: 13
Views: 1423

Re: HDHP vs PPO (least bad choice)

What are the out of pocket maximums? Are we assuming your health expenses at this time are minimal? +1 Insurance should be viewed first and foremost as protection against unlikely but devastating economic events. So if there is a significant difference in out-of-pocket maximums for these two plans,...

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