Search found 1319 matches

by afan
Sat Feb 06, 2016 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Accelerating financial independence by living with father-in-law?
Replies: 20
Views: 1869

Re: Accelerating financial independence by living with father-in-law?

At this point in your career I would advise against taking a step back. It sounds like you have a near ideal job now and are in an excellent position to move up. Don't give that up. No amount of money saved on housing costs would be worth it. If the move would not advance your spouse's career, no re...
by afan
Fri Jan 22, 2016 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need disability insurance
Replies: 24
Views: 1535

Re: Do we need disability insurance

That seems very high, but I have not shopped DI in a long time. Perhaps that is what they do with young women, many of whom they expect will get pregnant? A reduced amount of coverage for a lower price is way better than none at all. Obvious questions- Have you shopped multiple companies? Have you i...
by afan
Fri Jan 22, 2016 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Do you use the service of a CPA or you do your tax yourself?
Replies: 82
Views: 4845

Re: Do you use the service of a CPA or you do your tax yourself?

I do my own. Any of the mass market tax programs will handle your situation just fine. You will probably do them at least as quickly with Turbo Tax as if you hired a CPA.
by afan
Fri Jan 22, 2016 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need disability insurance
Replies: 24
Views: 1535

Re: Do we need disability insurance

Your wife needs disability insurance. She should get it now, before she becomes pregnant. It is "expensive" compared to some things, but at her age, it should still be relatively cheap as DI goes. As you accumulate assets, you will reach a point where she can Reduce her coverage and eventu...
by afan
Tue Jan 19, 2016 12:48 pm
Forum: Investing - Theory, News & General
Topic: Have Vanguard's active funds added value
Replies: 32
Views: 3857

Re: Have Vanguard's active funds added value

afan You are making the mistake of thinking only about investment improvement. A good wealth advisor is adding value in many ways that go way beyond investment results. And even a purely investment advisor adds great value by helping create a plan, choosing the right allocations, not taking more ri...
by afan
Tue Jan 19, 2016 12:03 pm
Forum: Investing - Theory, News & General
Topic: Have Vanguard's active funds added value
Replies: 32
Views: 3857

Re: Have Vanguard's active funds added value

I suppose one could calculate taxes one would have paid without the EA or CPA, the taxes they recommend and compare the two. But of course, using such advice is more about getting the taxes correct than necessarily reducing them. The expert might well tell you that you owed more than you thought. Th...
by afan
Mon Jan 18, 2016 7:07 pm
Forum: Investing - Theory, News & General
Topic: Have Vanguard's active funds added value
Replies: 32
Views: 3857

Re: Have Vanguard's active funds added value

Of course, a financial advisor, like a lawyer, enrolled agent or accountant could provide valuable FINANCIAl advice. But this discussion is about INVESTMENT advice. One can at least measure the returns on investments and the fees charged. I don't know how one would estimate the value of the FINANCIA...
by afan
Mon Jan 18, 2016 7:05 pm
Forum: Investing - Theory, News & General
Topic: Have Vanguard's active funds added value
Replies: 32
Views: 3857

Re: Have Vanguard's active funds added value

Parry, Good points all around. I will see if I have the energy to look up which DFA funds have 15 year records. I don't find it that interesting since they are passive funds and should have alphas of about zero. To the extent that the R squared values are high- and they were very high for the funds ...
by afan
Mon Jan 18, 2016 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Taxact breached as well - just saw an article in wsj
Replies: 35
Views: 3541

Re: Taxact breached as well - just saw an article in wsj

...e-filed tax returns get their refunds quicker. Never get a refund. This means giving the government an interest free loan. IF I want to lend money to the government I will buy Treasuries. You always want to have some taxes due. Depending on how aggressive you want to be, target having the highes...
by afan
Sun Jan 17, 2016 9:33 pm
Forum: Investing - Theory, News & General
Topic: Have Vanguard's active funds added value
Replies: 32
Views: 3857

Re: Have Vanguard's active funds added value

Tried running the analysis for DFA. I am at a disadvantage, since I don't know the DFA universe. I don't which DFA funds have been around for 15 years, and which are newer. So far I have run Portfolio Visualizer 3, 4 and 5 factor analyses for DFTCX DFEOX DFQTX DUSQX DFVEX DFUSX and DFBMX. I used eit...
by afan
Fri Jan 15, 2016 6:08 pm
Forum: Investing - Theory, News & General
Topic: Have Vanguard's active funds added value
Replies: 32
Views: 3857

Re: Have Vanguard's active funds added value

Larry, this is great. Perhaps it is the formatting problem discussed by cfs, but I don't see the factor analysis results for the DFA funds. My conclusion from the FA you show for Vanguard is that almost all returned what the factors would have predicted, and the alphas were not significantly differe...
by afan
Fri Jan 15, 2016 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance question as sole beneficiary
Replies: 32
Views: 2263

Re: Inheritance question as sole beneficiary

If you are sure your dad did not do the same thing with some other account in favor of your brother, then it does seem like a mistake. I was peripherally involved in a similar case, multiple siblings, one left out of a list of beneficiaries in the will. They got together and decided to settle the es...
by afan
Sun Jan 10, 2016 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Return, cut the cord with my CPA?
Replies: 11
Views: 1130

Re: Tax Return, cut the cord with my CPA?

If you are telling your CPA about tax rules then you certainly should not be paying that person to do your taxes. From what you describe, you can do your taxes yourself, easily. Cheap or free tax software, I found, simplifies data entry. You can probably download most or all of your W2 and 1009 data...
by afan
Sun Jan 10, 2016 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust
Replies: 20
Views: 1792

Re: Revocable Living Trust

....duplicate
by afan
Sun Jan 10, 2016 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust
Replies: 20
Views: 1792

Re: Revocable Living Trust

Interested in bsteiner's comments about RLT. Not in NJ, but I was trustee and attorney in fact with a DPOA for a relative. Fortunately, I got involved while the grantor could still transfer assets into the trust. For everything that was in the trust, or that subsequently made it there, things could ...
by afan
Sat Jan 09, 2016 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Insurance for millionaires?
Replies: 61
Views: 5194

Re: Insurance for millionaires?

In my state 401k and other retirement assets are protected only while they remain in the account. Once you start RMDs everything that comes out is fair game. Since you can't spend it while it is in and eventually you are required to take it out, the protection is temporary. Properly priced umbrella ...
by afan
Fri Jan 08, 2016 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: umbrella insurance - why so expensive?
Replies: 34
Views: 2409

Re: umbrella insurance - why so expensive?

That sounds crazy high. Teenage druvers hit our auto premium but not the umbrella. Is there a reason reason you have a young family memeber who lives with you but has their own.pilicy? Could it be that yhe umbrella is coveri g this person, but yhe underlying auto coverage is on a separate policy? In...
by afan
Thu Jan 07, 2016 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Insurance for millionaires?
Replies: 61
Views: 5194

Re: Insurance for millionaires?

You need life insurance if someone depends on your earned income and would suffer financially from your premature death. For this you almost certainly would want term. You might need life insurance as part of overall estate planning, but probably not at the asset level you postulated. For this you m...
by afan
Wed Jan 06, 2016 3:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Attracts Record Flows in 2015
Replies: 26
Views: 2308

Re: Vanguard Attracts Record Flows in 2015

Index funds give you market averages, but have nothing to do with the distribution of returns among active mangers. That distribution tends to be wide when the underlying assets are volatile and have wide distributions, narrow when with low volatility similar assets. So stock portfolios vary a lot i...
by afan
Wed Jan 06, 2016 11:29 am
Forum: Investing - Theory, News & General
Topic: Vanguard Attracts Record Flows in 2015
Replies: 26
Views: 2308

Re: Vanguard Attracts Record Flows in 2015

Indexes outperformed active management before there were index funds. Index funds have beaten active consistently for as long as they have been around. Index funds are better and cheaper now than they were while building this record. There is zero evidence that the growth of index funds has improved...
by afan
Mon Jan 04, 2016 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance estimate inclusion in net worth?
Replies: 19
Views: 1917

Re: Inheritance estimate inclusion in net worth?

It could be reasonable to include estimated inheritance in net worth, but only under some very limited circumstances. You would have to be really sure you are going to get the money, such that the only uncertainty is the value when you get it. If the person has already died, the estate is nearly set...
by afan
Sun Jan 03, 2016 5:25 pm
Forum: Investing - Theory, News & General
Topic: Rekenthaler: "The Costs of Active Management"
Replies: 37
Views: 2723

Re: Rekenthaler: "The Costs of Active Management"

The high level of noise makes it hard to know whether an individual manager has beaten the market, even over a long period. That also means it is hard to conclude that one would be better off with such a manager. Ex post, either the manager beat the market or not. There is no such thing as beating t...
by afan
Sun Jan 03, 2016 2:14 pm
Forum: Investing - Theory, News & General
Topic: Rekenthaler: "The Costs of Active Management"
Replies: 37
Views: 2723

Re: Rekenthaler: "The Costs of Active Management"

I But are some of you saying that if costs weren't any issue, active funds would be a better strategy than Index funds? If yes, than what happened to the argument that managers with the exception of a few, posses luck rather than skill when they do outperform an Index fund????.... Read F&F Luck...
by afan
Sun Jan 03, 2016 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Investing advice for married couple with ~350k income
Replies: 11
Views: 2088

Re: Investing advice for married couple with ~350k income

The funds would have to be awful to be worse than taxable. Some 401k plans have a brokerage option. You transfer the money to the broker account and buy whatever you want. It is a tiny bit more hassle, but worth it if the plan mutual funds are bad. It seems unlikely you need that much money in cash....
by afan
Sun Jan 03, 2016 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Purchasing term life from AIG - should we sign my wife up now or wait until after the baby?
Replies: 4
Views: 418

Re: Purchasing term life from AIG - should we sign my wife up now or wait until after the baby?

Get the insurance now, asap. Complications of pregnancy are among the biggeat health risks young women face. Insurance companies know this, so your rates mught be higher than if she were not pregnant. On the other hand, if she is healthy now, insurance companies also know that a large proportion of ...
by afan
Thu Dec 24, 2015 6:21 pm
Forum: Investing - Theory, News & General
Topic: Bogle: "We Need to Fix the Bond Index"
Replies: 46
Views: 3873

Re: Bogle: "We Need to Fix the Bond Index"

One could claim both that the market is working and that individual investors would be better off using something other than Treasuries. The interest rate on T bonds is set by huge investors -sovereign wealth funds, insurance companies, pension funds, etc. Theae investors cannot get their safe asset...
by afan
Thu Dec 24, 2015 5:30 pm
Forum: Investing - Theory, News & General
Topic: TIAA-CREF Wealth Management Advisors
Replies: 12
Views: 1143

Re: TIAA-CREF Wealth Management Advisors

Get your assets out. This is a waste of money. Do not switch to a full service broker. Do not switch to a robo. Someone has convinced you that you need a third party to manage your money. You don't. Read up on this site about the three fund portfolio. That is all you need. Or two funds. You should b...
by afan
Thu Dec 24, 2015 5:48 am
Forum: Personal Finance (Not Investing)
Topic: Personal umbrella insurance policies
Replies: 34
Views: 2722

Re: Personal umbrella insurance policies

Your retirement assets are protected while in the retirement account. However, once you withdraw funds, as you must do every year once yo hit 70.5, the money you take out is fair game. Get umbrella insurance. Much better deal than increasing the limits on home or auto policies.
by afan
Wed Dec 23, 2015 8:16 pm
Forum: Investing - Theory, News & General
Topic: Part 2 of the perfect storm post, how to increase EXPECTED returns
Replies: 118
Views: 9505

Re: Part 2 of the perfect storm post, how to increase EXPECTED returns

So there seems to be agreement that there is no data to support cap rates as predictors of real estate returns. Knowing the current rental rate tells you the current cash flow. It does not tell you whether rents will go up or down in the future. The relationship between housing prices and rents is n...
by afan
Wed Dec 23, 2015 3:01 pm
Forum: Investing - Theory, News & General
Topic: has Indexing's popularity made active investing easier?
Replies: 8
Views: 1540

Re: has Indexing's popularity made active investing easier?

The market will handle this. If it were to become true that indexing had rendered markets inefficient such that active management beat indexing, this would correct. Investors would yank money from index funds and send it to active managers. This would continue until indexing declined enough that it ...
by afan
Tue Dec 22, 2015 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Should I cash out my whole life policy?
Replies: 81
Views: 5199

Re: Should I cash out my whole life policy?

Any suggestions about how to maximize the percent of cash value that could be directed somewhere productive?
by afan
Tue Dec 22, 2015 10:05 am
Forum: Investing - Theory, News & General
Topic: Part 2 of the perfect storm post, how to increase EXPECTED returns
Replies: 118
Views: 9505

Re: Part 2 of the perfect storm post, how to increase EXPECTED returns

If the market is efficient, if prices are right, then one increases expected return by increasing risk. That is, by increasing allocation to risky assets. Investors care about risk and risk adjusted return. This discussion does not address whether valuations help predict risk adjusted returns. If on...
by afan
Mon Dec 21, 2015 3:35 pm
Forum: Investing - Theory, News & General
Topic: Goldman is going slash-and-burn for factor investing market share
Replies: 13
Views: 1671

Re: Goldman is going slash-and-burn for factor investing market share

I initially assumed these would be funds sold through wrap programs and Goldman would get its 10 pounds of flesh theough the wrap fees. But it does say etfs.

I cannot imagine buying anything from GS, but glad to see prices coming down.

Maybe this is a move to compete with Blackrock??
by afan
Mon Dec 21, 2015 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Vendors for Umbrella Policy - Need Advice
Replies: 5
Views: 372

Re: Independent Vendors for Umbrella Policy - Need Advice

We have the same setup with an investment property. The condo association policy covers everything fixed within the condo, our policy covers other possessions and liability. We got an excellent deal on umbrella through Chubb, via my work. I don't know whether they would have offered the policy at al...
by afan
Mon Dec 21, 2015 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Should I cash out my whole life policy?
Replies: 81
Views: 5199

Re: Should I cash out my whole life policy?

Meph, Helpful, but not there yet. Still trying to figure out how one would capture the largest share possible of the cash value an old whole life policy if there were no more need for insurance. It sounds closest to an old CD ladder with many years to go, but purchased at a time of higher interest r...
by afan
Sun Dec 20, 2015 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Should I cash out my whole life policy?
Replies: 81
Views: 5199

Re: Should I cash out my whole life policy?

[quote="mephistophles"] You could donate the life insurance policy to the medical school. Make them owner or irrevocable beneficiary. You might even be able to coordinate with your will so that the proceeds of the policy could be used to help defray the cost of shipping your body from the ...
by afan
Sun Dec 20, 2015 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Should I cash out my whole life policy?
Replies: 81
Views: 5199

Re: Should I cash out my whole life policy?

Burial costs: My family knows I expect the least expensive arrangements possible. That may include donation of my corpse to a medical school, if they will pay the expenses. I don't want my heirs to waste any money on the left over piece of tissue that used to be me. Cash value in whole life policy: ...
by afan
Sun Dec 20, 2015 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: How much term life insurance to buy?
Replies: 3
Views: 673

Re: How much term life insurance to buy?

If you are as young as your life stage implies, there may not be too much premium cost to having that much insurance. Dropping your level of insurance after 20 years could be a reasonable plan, since you have fewer years of kid support at that point. At your age, I don't know how much premium differ...
by afan
Fri Dec 18, 2015 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: B of A power of attorney vs joint account
Replies: 35
Views: 1889

Re: B of A power of attorney vs joint account

So when your spouse resigned as trustee, this caused a problem with Vanguard? can you elaborate or link to the description of the issue?
by afan
Fri Dec 18, 2015 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Should I cash out my whole life policy?
Replies: 81
Views: 5199

Re: Should I cash out my whole life policy?

The potential value of holding on to a whole life policy once all the overpriced commissions have been paid could well be valid. the problem is how one actually gets at that cash value, if it counts as part of the bond allocation. Taking it out exposes you to taxes, which problem gets worse as you h...
by afan
Fri Dec 18, 2015 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Side Hustle, how to account for ?
Replies: 22
Views: 1730

Re: Side Hustle, how to account for ?

In my state the fees to set up and annually report an LLC would eat up your income from the business. It definitely would not be worth it. I would say not to set one up unless you have to, and you don't seem to have any need for it. Also, no reason to create a separate bank account. Just be sure you...
by afan
Fri Dec 18, 2015 3:30 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg's Matt Levine on BlueCrest Hedge Fund Closure
Replies: 5
Views: 483

Re: Bloomberg's Matt Levine on BlueCrest Hedge Fund Closure

Where did you get the impression that the inside and outside funds were running the same assets and strategy? That would be really unusual, I didn't get that impression from the article, and that doesn't square at all with the massive performance difference. 2) Invest outsiders' money in a way that...
by afan
Fri Dec 18, 2015 12:46 pm
Forum: Investing - Theory, News & General
Topic: [Third Avenue liquidates its high-yield bond fund]
Replies: 130
Views: 8016

Re: [Third Avenue liquidates its high-yield bond fund]

What a great name for a fund. Next high yield bond bubble, I am starting that up.
by afan
Fri Dec 18, 2015 12:39 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg's Matt Levine on BlueCrest Hedge Fund Closure
Replies: 5
Views: 483

Re: Bloomberg's Matt Levine on BlueCrest Hedge Fund Closure

I am no fan of hege funds, but this explanation does not make sense. If the outside fund had the same return as the inside fund before fees and the fees ate up all of the profit, then why in the world would they close that down? It would be a cash cow. Milk it until investors wised up and pulled out...
by afan
Fri Dec 18, 2015 10:51 am
Forum: Personal Finance (Not Investing)
Topic: B of A power of attorney vs joint account
Replies: 35
Views: 1889

Re: B of A power of attorney vs joint account

My experience has been that no financial institution accepted a DPOA. Not one. Fortunately, the elderly person was able to authorize transfers and consolidate assets in one trust account. Since we could do that, we never pushed our way through legal to get the DPOA accepted. We did sit through some ...
by afan
Thu Dec 17, 2015 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: LifeLock vs Freezing Credit Reports
Replies: 22
Views: 2519

Re: LifeLock vs Freezing Credit Reports

Credit freeze is straightforward.

Lifelock has always been a scam. Not worth it, even if free. Avoid them.
by afan
Thu Dec 17, 2015 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: B of A power of attorney vs joint account
Replies: 35
Views: 1889

Re: B of A power of attorney vs joint account

I would not use a joint account for the reasons noted above. You have just changed ownership of the assets in the account. You now own the account as much as she does. If you die first, unlikely as that may be, they could be declared to be part of YOUR estate, since you had as much right to withdraw...
by afan
Thu Dec 17, 2015 5:53 pm
Forum: Investing - Theory, News & General
Topic: Fortune article on robo advisors
Replies: 5
Views: 558

Fortune article on robo advisors

Have not seen this one mentioned yet. If there is already a thread, moderators please merge. http://fortune.com/2015/12/16/millennial-money-wall-street/ Just one opinion, but the author seems to think the old school brokers and advisors have their heads in the sand, hoping younger investors may star...

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