Search found 2495 matches

by afan
Fri Apr 28, 2017 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Law Changes
Replies: 12
Views: 264

Re: Tax Law Changes

I see several locked posts speculating about tax law changes.

Maybe the moderators could post a reminder about forum rules?
by afan
Fri Apr 28, 2017 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Law Changes
Replies: 12
Views: 264

Re: Tax Law Changes

Given the way things change drastically as they make it through the legislative process, it would be risky to base investment decisions on speculative possible changes in tax law. That is different than basing decisions on changes that have passed but not yet come into effect. Even changes that have...
by afan
Fri Apr 28, 2017 1:47 pm
Forum: Investing - Theory, News & General
Topic: Largest Funds by AUM
Replies: 13
Views: 353

Re: Largest Funds by AUM

I do know that among the 25 largest funds/ETFs in 2016, $1.4 Trillion is held in index funds and $580 Billion in active funds. I doubt that is true. TSM and SPY alone would account for more than half of that figure. ETF.com has SPY at $237.8 B. Data through 2014, Morningstar had the total for mutua...
by afan
Fri Apr 28, 2017 1:42 pm
Forum: Investing - Theory, News & General
Topic: Largest Funds by AUM
Replies: 13
Views: 353

Re: Largest Funds by AUM

But aren't pensions, insurance companies, etc. still using index funds and ETFs? Probably not. For large enough investors they can exploit the economies of scale internally without having to pay an outside company to do it for them. They also get a little bit more control and confidentiality. If yo...
by afan
Fri Apr 28, 2017 1:30 pm
Forum: Investing - Theory, News & General
Topic: "ETFs Are 'Weapons of Mass Destruction'"
Replies: 36
Views: 3476

Re: "ETFs Are 'Weapons of Mass Destruction'"

If everyone indexes, there is no trading and no market. Well, no. I index, but I trade every time a paycheck comes in. Every time a dividend is reinvested. When I get paid for my side job. It is always total stock market, but I trade. I only buy, since I am in the accumulation phase. Plenty of peop...
by afan
Fri Apr 28, 2017 1:04 pm
Forum: Investing - Theory, News & General
Topic: "ETFs Are 'Weapons of Mass Destruction'"
Replies: 36
Views: 3476

Re: "ETFs Are 'Weapons of Mass Destruction'"

...Vanguard has a study, that does show ETFs are more frequently traded, but discounts it as being individuals who want to trade choose ETFs, not that ETFs "tempt" otherwise buy and hold investors into trading... It's not an easy question to answer. I remember my amazement at realizing th...
by afan
Fri Apr 28, 2017 1:00 pm
Forum: Investing - Theory, News & General
Topic: Largest Funds by AUM
Replies: 13
Views: 353

Re: Largest Funds by AUM

The Vanguard total stock fund is much larger than that figure for SPY. It is about $550 billion. The Wall Street Journal used to regularly publish a list of returns for the largest funds. I stopped reading it so I don't know whether they have continued. If you look up the WSJ for the dates you are i...
by afan
Fri Apr 28, 2017 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Any regrets living a frugal life for high income/high networth individuals?
Replies: 169
Views: 17862

Re: Any regrets living a frugal life for high income/high networth individuals?

I probably value experience over stuff within the context of this discussion. But the experiences I value are cheap or free. I like taking walks in my neighborhood, hiking on trails nearby, reading and putting on my headphones and listening to music. Music is free online. I suppose I have to pay for...
by afan
Fri Apr 28, 2017 9:07 am
Forum: Personal Finance (Not Investing)
Topic: When do you plan to die?
Replies: 157
Views: 9455

Re: When do you plan to die?

For planning purposes I pick an age that leaves little realistic chance of outliving. Right now I use 115. My spouse comes from a very long lived family where death before 90 is rare. Also in perfect health and a competitive age group runner. Tack on decides more of medical advances and the figure i...
by afan
Thu Apr 27, 2017 5:50 pm
Forum: Investing - Theory, News & General
Topic: "ETFs Are 'Weapons of Mass Destruction'"
Replies: 36
Views: 3476

Re: "ETFs Are 'Weapons of Mass Destruction'"

Good reason to buy the total stock market, rather than a subset. Kind of depressing that, given the large amount of money in the S&P500 and this widely known maneuver, active traders STILL lag the indexes. Even with this periodic head start, their stock picking, expenses and fees leave them trai...
by afan
Thu Apr 27, 2017 4:34 pm
Forum: Investing - Theory, News & General
Topic: "ETFs Are 'Weapons of Mass Destruction'"
Replies: 36
Views: 3476

Re: "ETFs Are 'Weapons of Mass Destruction'"

Well, we individual index investors buy blindly. But those who run index funds do all they can to shave fractions of pennies off their but prices. They are zero information traders in terms of predicting sto k prices, but they use sophisticated approaches to avoid paying too much to match the index....
by afan
Wed Apr 26, 2017 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2468

Re: "Negative points" on mortgage

This is a classic net present value problem, easily solved in an NPV calculation on a calculator or with a spreadsheet. The problem with break even analysis is that it pretends that a dollar now is worth the same as a dollar years from now. This would only be true if your discount rate were zero, wh...
by afan
Tue Apr 25, 2017 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Shouldn't one's "number" be indexed to the current PE ratio?
Replies: 20
Views: 1386

Re: Shouldn't one's "number" be indexed to the current PE ratio?

We do our retirement planning by assuming progressively larger drops in the value of my stock portfolio, while continuing the same assumptions about future returns. Then see how far prices can drop before we run into trouble. So there is no single "number" that tells us we have enough. The...
by afan
Tue Apr 25, 2017 7:51 am
Forum: Investing - Theory, News & General
Topic: What's Wrong With AQR? (Managed Futures)
Replies: 66
Views: 4899

Re: What's Wrong With AQR? (Managed Futures)

"Sharpening Sharpe Ratios" goes right to the heart of the matter and is not too painful to read. The shortcomings of Sharpe Ratios are not just one person's opinion. There has been a well developed academic literature about this since at least the mid '70's. The Sharpening paper is quite o...
by afan
Tue Apr 25, 2017 7:30 am
Forum: Investing - Theory, News & General
Topic: What's Wrong With AQR? (Managed Futures)
Replies: 66
Views: 4899

Re: What's Wrong With AQR? (Managed Futures)

bjr, Google "Sharpening Sharpe Ratios" Or go to SSRN and try "skewness" Variance does not fully capture the risks that arise in the markets. It has nothing to do with incomplete data or the sequence of withdrawal. Knowing the variance of a distribution does not tell you the shape...
by afan
Sun Apr 23, 2017 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Any regrets living a frugal life for high income/high networth individuals?
Replies: 169
Views: 17862

Re: Any regrets living a frugal life for high income/high networth individuals?

Saving money is good in and of itself. There may be a bit of a schism on this topic, because I don't agree with that or other intimations on this thread that there's a moral aspect to this. Acquiring tools and options is good, and money provides that. But there's nothing inherently virtuous in savi...
by afan
Sun Apr 23, 2017 2:44 pm
Forum: Investing - Theory, News & General
Topic: "Commodities in Your Portfolio? 'Hogwash...'"
Replies: 21
Views: 2617

Re: "Commodities in Your Portfolio? 'Hogwash...'"

Harvey's work on false discoveries in financial research is worth giving a good careful read. If you don't understand the math and statistics then you should not follow the next hot investment idea pushed from some backtested study. You have a better chance of getting rock hard abs in your sleep fro...
by afan
Sun Apr 23, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Any regrets living a frugal life for high income/high networth individuals?
Replies: 169
Views: 17862

Re: Any regrets living a frugal life for high income/high networth individuals?

If you save everything and die early, you've kind of wasted your life. There is the crux of the matter. I could not disagree more. Spending a lot of money is not a goal. It is not as if the only thing restraining me is fear of running out of money. Saving money is good in and of itself. It is like ...
by afan
Sun Apr 23, 2017 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Any regrets living a frugal life for high income/high networth individuals?
Replies: 169
Views: 17862

Re: Any regrets living a frugal life for high income/high networth individuals?

I am so glad that i didnt live frugally. I went to vegas with friends in my 20s, great dates with significant others, and great vacations, all sorts of other things. I dont think that it would have been as much fun in my 60s. I am so so happy that I blew some money, and that i continue to blow some...
by afan
Sun Apr 23, 2017 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Any regrets living a frugal life for high income/high networth individuals?
Replies: 169
Views: 17862

Re: Any regrets living a frugal life for high income/high networth individuals?

I can't think of anything I regret not buying, but there's plenty of things I wish I hadn't bought. I can think of a lot of things I regret not buying- Microsoft when it went public, Google when it went public... But not "stuff". My car gets me where I want to go, it is safe and reliable....
by afan
Sun Apr 23, 2017 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust
Replies: 24
Views: 1114

Re: Irrevocable Trust

bsteiner,

That looks like a list of asset protection states. Is there a connection between asset protection goals and a quiet trust?
by afan
Sat Apr 22, 2017 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust
Replies: 24
Views: 1114

Re: Irrevocable Trust

We are making a lot of assumptions that may not apply in this situation. The OP said that the parents created and placed the family farm into an irrevocable trust 10 years ago. But the everyone is assuming that is not the case. Rather the comments assume that the parents created a will or revocable ...
by afan
Sat Apr 22, 2017 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

I went over my notes from two years ago. With the speed with which these things change, please check before assuming the following is still true: Schwab will serve as administrative trustee if you hire an investment management firm on the (very large) list of Schwab advisors. Schwab charges 0.4% for...
by afan
Sat Apr 22, 2017 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 113
Views: 9134

Re: Why are pensions revered, but annuities reviled?

Note that some retirees have been hurt when their municipal pensions were cut as the government entity went bankrupt. Fully protected pension benefits are fine, but many pensions are at risk.
by afan
Sat Apr 22, 2017 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Mom's Universal Life Insurance – Keep or not?
Replies: 8
Views: 849

Re: Mom's Universal Life Insurance – Keep or not?

You imply that paying the premium would leave plenty of money to cover care for your mom. If so, then continuing the policy sounds appropriate. If that money could be used to make her life comfortable then you should use it for that purpose instead. Yes, you could pay the premium out of your pocket,...
by afan
Fri Apr 21, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

For real estate, insurance policies, loans for startup companies, etc., I would contend that is outside the investment realm and should be handled in other sections of the trust and by the corporate trustee. I see the asset manager handling all things related to security exchange markets. This part...
by afan
Fri Apr 21, 2017 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

For us, we will have some real estate and would likely leave it to the trustee/guardian to decide whether to keep it or not. If not, it could be sold and the remaining funds managed by The vanguard corporate co-trustee. But if the guardian/co-trustee wants to keep it (because it is easy to manage a...
by afan
Fri Apr 21, 2017 3:11 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 21
Views: 4722

Re: Bill Sharpe's preferred portfolio

In addition to the government bonds held by central banks, it is not clear how to deal with another huge batch of government bonds: those held by commercial banks because their regulators force them to do so. In the US and all over Europe part of the reaction to the financial crisis has been to mand...
by afan
Fri Apr 21, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

I think I get where you are coming from. I just don't see that the trust protector approach solves the problem. If no one can change the trust, then you lock the trustee into whatever investment style.you prescribe. If you permit someone to change the trust, then you have no longer locked in the tru...
by afan
Fri Apr 21, 2017 8:48 am
Forum: Personal Finance (Not Investing)
Topic: CPA or TurboTax
Replies: 18
Views: 1420

Re: CPA or TurboTax

Hiring a paid preparer is worth it if your taxes are complicated enough that you cannot, or do not want to, do them yourself. If you charge a higher hourly rate than your preparer it could pay to have them do your taxes while you earn money. If you want a paid preparer, an enrolled.agent is usually ...
by afan
Thu Apr 20, 2017 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

Well right now Vanguard will do a pure index low cost portfolio. No active management, no trying to beat the market, no factor bets, no high commission garbage. I don't know of any other trust company that will promise that now. But years ago the other money managers thought Vanguard was crazy for o...
by afan
Wed Apr 19, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

By the time I got this far I had decided to just manage the trust myself. However, while researching I did discover that separating the investment management from trust administration is a standard practice called "directed trustee". Not all trust companies are interested. It seems to be q...
by afan
Wed Apr 19, 2017 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

The trust can allow the beneficiaries to appoint an independent trust protector who is able to modify the investment directions within the trust. There is standard language currently in use that can be incorporated into the trust to allow this. By using this approach, you can have your cake (near t...
by afan
Wed Apr 19, 2017 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Bill received after Estate is closed
Replies: 55
Views: 5000

Re: Bill received after Estate is closed

Wow, when my wife hired a probate attorney for her late fathers estate, they required a small retainer fee from which they would bill against. I would call the attorney and tell him you just receive a bill against your fathers estate after probate was closed. Tell them you would like them to draft ...
by afan
Wed Apr 19, 2017 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Bill received after Estate is closed
Replies: 55
Views: 5000

Re: Bill received after Estate is closed

In case you don't know, besteiner and gill are attorneys in this field. I would ask them for their opinion. I am not a lawyer so keep that in mind: My understanding is that once the estate is closed any bills submitted afterward are out of luck. My understanding is that if the personal representativ...
by afan
Wed Apr 19, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford private school for my kids?
Replies: 67
Views: 5068

Re: Can I afford private school for my kids?

Just note that the SAT scores of a school tell you the income and educational status of the parents much more than anything about what goes on inside the school. If the school practices selective admissions, then it also tells you how many very well educated younger kids apply to get in. Unfortunate...
by afan
Wed Apr 19, 2017 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

The statement of additional information for the Vanguard index funds has a long detailed discussion of futures, options, options on futures, leverage and margin. None of these are inherently bad. The typical boglehead reaction is based on the behavior of people who use these to speculate. Vanguard, ...
by afan
Wed Apr 19, 2017 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

Trustee would have the ability in mutual funds that cover stock and bonds, not giving the ability for options, commodities, margin, and other securities. Rogoodma, Great example of the problem. Your typical index fund invests in options and futures as a matter of course. If you were to forbid the t...
by afan
Wed Apr 19, 2017 5:18 am
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

What might those other ways be? If, in the future, there is something better than low cost passively managed index based funds, and your trust forbids investing in them, what does your trustee do? Go to court to change the trust? Imagine if you had written into a trust the "best, never will cha...
by afan
Tue Apr 18, 2017 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford private school for my kids?
Replies: 67
Views: 5068

Re: Can I afford private school for my kids?

TomatoTomahto wrote:My personal experience, of a Catholic school for a few years, is that I would not spend money on it.


Depends on your options. There are plenty of parents who are not Catholic but send their kids to Catholic schools because they are better than the public schools available to them.
by afan
Tue Apr 18, 2017 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

my understanding that one of the benefits of having a corporate co-trustee is enhanced asset protection (from creditors or divorcing spouses). So having the flexibility for trustee or successor trustee's to add/use a corporate co-trustee or distribution trustee may be a good idea if asset protectio...
by afan
Tue Apr 18, 2017 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

Old fee schedule annual cost was 33bps for the asset management plus 5bps for the trust administration - total annual cost of 38bps or $19,000, I must have missed an iteration of the schedule. I don't remember them breaking out the asset management separate from the trust services before. It was ju...
by afan
Tue Apr 18, 2017 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: What kind of stuff would you never DIY, assuming you could?
Replies: 75
Views: 5781

Re: What kind of stuff would you never DIY, assuming you could?

Anything dirty or dangerous. Complicated things that it is really important to get right. I would never try to write my own asset planning documents, but I can do my own taxes. If my taxes were complicated I would hire someone. I do simple plumbing repairs, but no soldering. I do trivial electrical ...
by afan
Tue Apr 18, 2017 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford private school for my kids?
Replies: 67
Views: 5068

Re: Can I afford private school for my kids?

We have also found that their small private school is more diverse in every way than our highly rated public schools. This is an interesting statement I'm having a hard time wrapping my head around. Me too, I find that hard to believe ^^. I'm happy to explain. We live in an upper income area with a...
by afan
Tue Apr 18, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford private school for my kids?
Replies: 67
Views: 5068

Re: Can I afford private school for my kids?

And if you live in a neighborhood with good public schools you get that high housing price back later when you downsize and sell the house. Or your estate gets it when you die. Setting aside the wisdom of a school of your same religion, from a financial point of view this does not look close to reas...
by afan
Tue Apr 18, 2017 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

I wonder how they are able to pull this off (avoiding capital gains taxes when selling appreciated securities)? They do not sell off securities without considering the tax implications. I am told that they will invest new money, dividends, capital gains and interest the Vanguard way, but leave low ...
by afan
Tue Apr 18, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

As long as your spouse can change corporate trustees I would not worry about Vanguard's, likely short term, problems with customer service. That is assuming it has hit the trust business at all. You may well have another reason for your will requiring a corporate cotrustee. If it only for investment...
by afan
Tue Apr 18, 2017 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 52
Views: 3882

Re: Trust Services

According to people I know who use Vanguard through PAS, not for trusts, they do not incur capital gains taxes by automatically dumping any positions in order to put everything in a few index funds. However, they might resist if someone wanted to hold a portfolio whose composition was against their ...
by afan
Tue Apr 18, 2017 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford private school for my kids?
Replies: 67
Views: 5068

Re: Can I afford private school for my kids?

Way too much to spend when you have decent public schools. It is far more important to save for college. That can be extremely expensive. It would be perfectly reasonable to put that entire 22k per year into college savings. Not your question, I know, but I suggest rethinking your goals. One of the ...
by afan
Tue Apr 18, 2017 5:12 am
Forum: Personal Finance (Not Investing)
Topic: USAA and Haven Life (Mass Mutual) Life Insurance Quotes
Replies: 12
Views: 1158

Re: USAA and Haven Life (Mass Mutual) Life Insurance Quotes

It is hardly surprising that the premium would be higher for 30 year 500k than 20 year 100 k. Are you sure USAA is not competitive? You need to shop more than one company for the same policy. Did you follow up with USAA about your asthma? Maybe Brudude has an opinion about how much life insurance co...

Go to advanced search