Search found 1859 matches

by afan
Thu Jul 28, 2016 8:26 am
Forum: Investing - Theory, News & General
Topic: Another dodgy hedge fund. Echoes of Bernie Madoff.
Replies: 9
Views: 1295

Re: Another dodgy hedge fund. Echoes of Bernie Madoff.

Anyone know whether there were investment advisors who steered clients into these hedge funds? That is usually a part of the story, with kickbacks and planners taking a percent of assets in the hedge fund. This was most reported with Fairfield Greenwich and Ezra Merkin. They did pay out some money t...
by afan
Wed Jul 27, 2016 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: BigLaw compensation portrayed accurately by media?
Replies: 31
Views: 3022

Re: BigLaw compensation portrayed accurately by media?

Hours often become a proxy for quality in part because having hours mean you have partners giving you a lot of work. Associates with a reputation for competence will be given lots of assignments. Also, hours = cash in the door for the firm. OK, that makes sense. It is not so much the number of hour...
by afan
Wed Jul 27, 2016 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: MRI Price
Replies: 25
Views: 1068

Re: MRI Price

It will be nearly impossible for people here to tell you what it should cost. Charges not only vary widely by region, but a given facility will have many different prices for the same study depending on the specific insurance plan. These charges are negotiated with the insurers on a plan by plan bas...
by afan
Wed Jul 27, 2016 4:44 am
Forum: Personal Finance (Not Investing)
Topic: BigLaw compensation portrayed accurately by media?
Replies: 31
Views: 3022

Re: BigLaw compensation portrayed accurately by media?

As someone far removed from this business I find the discussion fascinating. Why is there such an emphasis on massive billed hours for associates to make partner? I thought the job of a partner revolved around gathering clients, keeping them happy, managing a team of lawyers on big cases and ensurin...
by afan
Tue Jul 26, 2016 7:32 pm
Forum: Investing - Theory, News & General
Topic: LCG vs LCV over the last 23 years
Replies: 32
Views: 1762

Re: LCG vs LCV over the last 23 years

I manage to be in small caps stocks when they do well, in large growth when it does well, in small value it it outperforms. It is quite simple. I own the total market. So I never have to bet on which factor will do well. Whatever it is, I own it. Tax efficient, low turnover and an expense ratio, bef...
by afan
Mon Jul 25, 2016 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: Universal life as p/o fixed income allocation
Replies: 4
Views: 346

Re: Universal life as p/o fixed income allocation

Not all of the premium goes into the investment fund. Some may be deducted for commissions, some for premium taxes and other expenses. Since it is insurance, there are also fees for the cost of insurance. Typically these are deducted from the cash value. So"5%" means "5% return on the...
by afan
Mon Jul 25, 2016 3:53 pm
Forum: Investing - Theory, News & General
Topic: SP 500: active or passive?
Replies: 11
Views: 720

Re: SP 500: active or passive?

The important point is that the S&P500 stocks are picked to be representative of the market, not to outperform the market. The index is cap weighted, again to reflect the performance of the market. One could debate whether this particular passive index is the best. That debate would revolve arou...
by afan
Sun Jul 24, 2016 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Allstate Umbrella Insurance
Replies: 32
Views: 2143

Re: Allstate Umbrella Insurance

Which is why it pays to shop. If other carriers also want high premiums, then it is something in your risk profile. But shop before you assume that is the case.
by afan
Sun Jul 24, 2016 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Surprise- Amerisave
Replies: 23
Views: 3751

Re: Refinance Surprise- Amerisave

I hope you chase them and get back the money they owe you. Thanks for posting the information. I have not used them, but I have looked at their site. I was not aware that they would quote rates for 800 scores even if people put in lower scores on the referring website. I did think it odd that they d...
by afan
Sun Jul 24, 2016 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Who can I name as executor if I have no family or friends?
Replies: 12
Views: 2053

Re: Who can I name as executor if I have no family or friends?

If you put everything in trust there may be little or nothing to probate. Then the problem goes away. Talking to the development staff at your charities could help if they are large organizations. Smaller groups might not have the expertise to help.
by afan
Sun Jul 24, 2016 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Rules of Thumb: Max House Value as % of Net Worth?
Replies: 73
Views: 4555

Re: Rules of Thumb: Max House Value as % of Net Worth?

Our house, Zillow estimated market value, is 1/6 of the value of all our other investments. Our equity in the house is 13% of our networth. I have no idea whether that is good or bad. If we were to buy another house it would be smaller and cheaper. But the hassle and transaction costs of a sale, pur...
by afan
Sun Jul 24, 2016 6:53 pm
Forum: Investing - Theory, News & General
Topic: M* Rekenthaler: Mind Games Investors Lose
Replies: 7
Views: 1001

Re: M* Rekenthaler: Mind Games Investors Lose

@cfs & nedsaid, when I read the bit that you quoted this morning, my immediate thought was "They present absolutely no evidence for these statements and it appears to be a more off-the-cuff remark that makes sense, but is not really true." It reminded me of that remark about dead acco...
by afan
Sun Jul 24, 2016 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Rules of Thumb: Max House Value as % of Net Worth?
Replies: 73
Views: 4555

Re: Rules of Thumb: Max House Value as % of Net Worth?

Consider home ownership if and only if the price per sq ft < $100 OR the purchase price < 30% of your net worth. I've seen this posted by you before and it just baffles me. For many parts of the country that is simply unrealistic. Now you could say "just rent in those places" but that ass...
by afan
Sun Jul 24, 2016 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Rules of Thumb: Max House Value as % of Net Worth?
Replies: 73
Views: 4555

Re: Rules of Thumb: Max House Value as % of Net Worth?

I agree that available assets and cash flow matter more than networth when considering a purchase. The ratio of networth to house value as the years go by will depend on things completely out of your control: price appreciation on the home and behavior of the financial markets. One could get lucky o...
by afan
Sun Jul 24, 2016 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Put out-of-state rental property in LLC's name?
Replies: 27
Views: 4695

Re: Put out-of-state rental property in LLC's name?

Also, in many states it matters a lot whether there is more than one member of the LLC. If there is, then it is harder to pierce the veil. If it is a single member LLC, then in some states there is substantially less protection. The asset protection states have statutes giving SMLLC's the same prote...
by afan
Sun Jul 24, 2016 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Put out-of-state rental property in LLC's name?
Replies: 27
Views: 4695

Re: Put out-of-state rental property in LLC's name?

Again, I was told the protection depends on state law and how carefully one follows the form and substance of the LLC as a separate company. If you really run it like a business and document this with corporate minutes, separate bank accounts and tax returns, etc then it does work. For someone whose...
by afan
Sat Jul 23, 2016 6:08 am
Forum: Personal Finance (Not Investing)
Topic: Put out-of-state rental property in LLC's name?
Replies: 27
Views: 4695

Re: Put out-of-state rental property in LLC's name?

From speaking with an attorney who is an expert in asset protection: Yes, LLC's do limit liability. They have to be formed as and operated as a business, with proper formalities. So, in addition to creating it properly and filing annually with the state, you have to have separate bank accounts, minu...
by afan
Fri Jul 22, 2016 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Term life insurance - "overinsured" definition
Replies: 13
Views: 1052

Re: Term life insurance - "overinsured" definition

You need to look at what your realistic future spending plans would be. Your income expectations definitely go into this. You could buy so much insurance that it exceeds a reasonable projection of your future income, but it would be a foolish thing to do.
by afan
Fri Jul 22, 2016 12:34 pm
Forum: Investing - Theory, News & General
Topic: Discussing investing with spouse
Replies: 39
Views: 2367

Re: Discussing investing with spouse

Agreed. Often the difference between spouses breaks down to interest rather than ability. Investing should be simple. If you are doing something you cannot easily explain to someone who is only moderately interested you have overcomplicated things. A 3fund portfolio is simple. Not everyone feels lik...
by afan
Fri Jul 22, 2016 9:44 am
Forum: Investing - Theory, News & General
Topic: Discussing investing with spouse
Replies: 39
Views: 2367

Re: Discussing investing with spouse

Get the number of accounts down to the minimum. You may have no choice about where your workplace retirement funds are, but for everything else you should be able to have one brokerage firm. You probably can do your banking through that firm as well. My spouse is perfectly capable on managing invest...
by afan
Fri Jul 22, 2016 9:31 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation/Trust Income
Replies: 6
Views: 444

Re: Asset Allocation/Trust Income

I agree but it depends a bit on just how you get money from the trust. If it sends you an amount of "income" from dividends and interest, but never capital gains, then it is not the same as if you owned the assets and would profit from the gains. What you would lose if the market goes down...
by afan
Fri Jul 22, 2016 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Where do you buy individual stocks?
Replies: 43
Views: 2160

Re: Where do you buy individual stocks?

There is some logic to this approach but I doubt the benefits justify the costs. The first benefit is tax loss harvesting. By having individual stocks you have more chance at having losers than if you had the total market only. The downside here is that you have to invest the time to identify and se...
by afan
Fri Jul 22, 2016 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Anyone had a POA rejected? [Power of Attorney]
Replies: 25
Views: 1450

Re: Anyone had a POA rejected? [Power of Attorney]

Joint tenancy is rarely a good idea. Set aside any concerns that of fraud. Assume the other person will act completely in the interests of the elderly person. Once you do the JT, the account is now owned by the, presumably, younger person. It is subject to the claims of that person's creditors. If t...
by afan
Thu Jul 21, 2016 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone had a POA rejected? [Power of Attorney]
Replies: 25
Views: 1450

Re: Anyone had a POA rejected? [Power of Attorney]

In my experience, though it doesn't make sense, banks do honor attorney drafted trust documents even though they usually do not honor attorney drafted POAs... eecaven though the powers granted are the same. So moral of the story is get your accounts into a trust. For real estate POAs, at least in C...
by afan
Wed Jul 20, 2016 3:42 pm
Forum: Investing - Theory, News & General
Topic: NY Times article-Shiller on land and homes
Replies: 18
Views: 2675

Re: NY Times article-Shiller on land and homes

In determining the return on a house one has to add to the cost the maintenance expenses and taxes paid through the years. These can be substantial but are often overlooked. Add in the interest paid if there was a mortgage. Compare to investingl less in housing by paying rent and putting the balance...
by afan
Wed Jul 20, 2016 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Considerations about the irrevocable trust
Replies: 33
Views: 1819

Re: Considerations about the irrevocable trust

I am no expert, but to me it sounds like the OP went to an attorney who may be out of his depth for this situation. On a wide variety of issues, I find when someone tells me, in effect, "I am not that familiar with handling this issue, but I think I can probably work my way through it," th...
by afan
Tue Jul 19, 2016 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Executor of estate with serious accountant issue
Replies: 7
Views: 929

Re: Executor of estate with serious accountant issue

You have described more than enough reason to fire him. I will add a couple more- if there is a serious lack of competence then a new accountant may find other problems with the easy he was handling your father's affairs. He may have a good reputation among businesses buy what does he know about est...
by afan
Mon Jul 18, 2016 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Considerations about the irrevocable trust
Replies: 33
Views: 1819

Re: Considerations about the irrevocable trust

It is really just a matter of doing homework correctly before deciding one knows the answer. All things considered, the price difference between what LarryAllen is saying and the fee schedule they have posted hardly seems large enough to determine whether to go with Premier. If someone does go throu...
by afan
Sun Jul 17, 2016 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 71
Views: 8985

Re: Leave kids money by trust or outright/tax implications

[ This brings up the value of Roth conversions. I agree that moving to a Roth would eliminate the concern about the required distributions. I assume with no required distributions, then the complexities of the accumulation trust would also go away? The IRS would have already received its cut and th...
by afan
Sun Jul 17, 2016 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 71
Views: 8985

Re: Leave kids money by trust or outright/tax implications

Thank you so much NMJack and bsteiner. Particularly for pointing me to Natalie Choate. Still working my way through, but she is clear that many important points are either unresolved, or inferred based on PLRs. She does not seem concerned about this and she certainly appears to be THE authority on t...
by afan
Sun Jul 17, 2016 5:03 am
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 71
Views: 8985

Re: Leave kids money by trust or outright/tax implications

So the child can be trustee with discretionary distribution power over his/her own accumulation trust? That does not expose the assets to creditors? A court could not order the child to use their discretion to pay a creditor?
by afan
Fri Jul 15, 2016 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 71
Views: 8985

Re: Leave kids money by trust or outright/tax implications

I am fairly confident that this part is false.


Which part is false? That an individual can be trustee of his/her own conduit trust? OR that managing an accumulation trust is much more complicated?

Thanks
by afan
Fri Jul 15, 2016 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 71
Views: 8985

Re: Leave kids money by trust or outright/tax implications

NMJack, Thanks for the reply. I appreciate your input. My concerns were that the article I cited seemed to say that the accumulation trusts were supported only by private letter rulings, which the IRS says cannot be relied upon. That, plus the apparent risks of doing it wrong and paying big penaltie...
by afan
Fri Jul 15, 2016 2:59 pm
Forum: Investing - Theory, News & General
Topic: How do I approximate Total US Stock Market Index using...
Replies: 3
Views: 495

Re: How do I approximate Total US Stock Market Index using...

If this is a real life question, note that the performance of the total stock market is very well modeled by the S&P500 alone. You could just use that fund/etc and be done with it. If you feel the need to add mid and small caps, watch the fees. Many funds in this space charge so much that it wou...
by afan
Fri Jul 15, 2016 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding Inheriting Parents' Financial Mess / Debts
Replies: 35
Views: 2928

Re: Avoiding Inheriting Parents' Financial Mess / Debts

If he has been a struggling actor since he left home then it seems unlikely his cosigning a loan would have accomplished much. If he did not obligate himself, he should be find. I am pretty sure there are free credit counseling services available. I assume they will not do all that a private attorne...
by afan
Fri Jul 15, 2016 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Should we use a Vanguard CFP or Independent?
Replies: 4
Views: 539

Re: Should we use a Vanguard CFP or Independent?

Sweeping generalization: The Vanguard service will mainly look at your investments, and only at those that are in conventional stocks and bonds. They will have nothing to say about other investments- real estate, closely held business, and so forth. Their recommendations will be largely for low cost...
by afan
Fri Jul 15, 2016 1:51 pm
Forum: Investing - Theory, News & General
Topic: Active Managers having their worst year ever!
Replies: 19
Views: 2120

Re: Active Managers having their worst year ever!

Of course, it is theoretically possible to beat the market if you own investments that do well and are not traded by the public. Those high returns would not be part of a passive market portfolio, and someone who could pick the right non-public investments could beat the public market. in other word...
by afan
Fri Jul 15, 2016 1:39 pm
Forum: Investing - Theory, News & General
Topic: "The AUM Fee Schedule: Face-To-Face With A Dinosaur"
Replies: 1
Views: 659

"The AUM Fee Schedule: Face-To-Face With A Dinosaur"

As the title implies, the author suggests that AUM is no longer, if it ever was, a reasonable way to charge for invesmtnet management. He suggests that, perhaps, financial advisors might provide more time and help to clients with larger more complex portfolios. He suggests that the custody firm migh...
by afan
Fri Jul 15, 2016 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 71
Views: 8985

Re: Leave kids money by trust or outright/tax implications

Bumping this thread with another question for the estate planning experts: Accumulation vs Conduit trusts for retirement assets. I know (or I should say, I THINK) bsteiner has suggested accumulation trusts are preferable. They keep assets protected even after the trust has taken RMD's from the retir...
by afan
Fri Jul 15, 2016 11:14 am
Forum: Personal Consumer Issues
Topic: Clothing upgrade for professional environment
Replies: 78
Views: 4083

Re: Clothing upgrade for professional environment

Slim fit, definitely not. If he is a weightlifter then he could get shirts tailored to fit chest and waist. Many people think that muscular men should not dress to show off their physiques, at least not for business attire, but there are shirts that could fit him if he chose to ignore this opinion. ...
by afan
Fri Jul 15, 2016 9:44 am
Forum: Personal Consumer Issues
Topic: Clothing upgrade for professional environment
Replies: 78
Views: 4083

Re: Clothing upgrade for professional environment

If you want specific suggestions about style choices, look at styleforum.net. The huge and active site is entirely about clothing choices. Many of the most active people spend fortunes on clothes, but there is good information for everyone. Without a much clearer idea of how people dress in your cur...
by afan
Thu Jul 14, 2016 6:41 pm
Forum: Investing - Theory, News & General
Topic: Active Managers having their worst year ever!
Replies: 19
Views: 2120

Re: Active Managers having their worst year ever!

It is possible for active managers to have worse years if they increase their expenses. These need not be expense ratios. Higher turnover produces higher transaction costs. Active managers could churn more, charge the same fees and do worse than in the past as a result. As for active vs passive- it ...
by afan
Thu Jul 14, 2016 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Specify asset allocation in a Trust?
Replies: 53
Views: 2437

Re: Specify asset allocation in a Trust?

Thanks. I am looking into it. Some trust companies only want the job if they do the management, or another RIA who contracts with them. Since I am a BH 3-Fund type, I cannot see a point in paying anyone more than zero to "manage the investments". It seems that there are some companies outs...
by afan
Thu Jul 14, 2016 1:30 pm
Forum: Investing - Theory, News & General
Topic: "How saving too much can make your retirement less satisfying"
Replies: 52
Views: 7431

Re: "How saving too much can make your retirement less satisfying"

I suppose it depends on what you want to do. I don't find many things that I want that cost money. The few that do are not expensive. I marvel at and at least somewhat envy people who can find enough joy in certain entertainments or acquisitions that they are willing to spend large amounts of money ...
by afan
Wed Jul 13, 2016 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Specify asset allocation in a Trust?
Replies: 53
Views: 2437

Re: Specify asset allocation in a Trust?

You would need to have someone who both created such a trust, and also subsequently had a major creditor problem. I agree. Do you know of such cases? Or more systematic reviews of the efficacy of these trusts? Thanks for the explanation of why you use these states for reasons other than asset prote...
by afan
Wed Jul 13, 2016 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Corporate Co-Trustee and Testamentary Trust
Replies: 4
Views: 334

Re: Corporate Co-Trustee and Testamentary Trust

Vanguard also does trusts, and the fees are lower than Fidelity. They will happily use low cost index funds. But do you need a corporate trustee at all? In the past bsteiner has said that for large enough trusts traditional banks and trust companies may charge fees as a percent of assets that can ap...
by afan
Wed Jul 13, 2016 1:44 pm
Forum: Investing - Theory, News & General
Topic: SEC Bars [Dawn] Bennett From Industry, Orders $4M Payment
Replies: 6
Views: 648

SEC Bars [Dawn] Bennett From Industry, Orders $4M Payment

http://www.fa-mag.com/news/sec-bars-advisor-battling-administrative-hearing-process-27958.html?utm_source=FA+Subscribers&utm_campaign=e967d72cc4-FAN_FA_News_071316&utm_medium=email&utm_term=0_6bebc79291-e967d72cc4-233447561 Not sure if any BH'ers used her, but it seems this financial adv...
by afan
Wed Jul 13, 2016 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Specify asset allocation in a Trust?
Replies: 53
Views: 2437

Re: Specify asset allocation in a Trust?

Bruce, Concerning DAPT's, for example http://www.columbia.edu/~mr2651/67VandLRev.pdf "A Fresh Look at State Asset Protection Trust Statutes" Nov-19-2014 · 67 VAND. L. REV. 1741 (2014) and "Domestic Asset Protection Trusts: The Risks and Roadblocks Which May Hinder Their Effectiveness&...
by afan
Tue Jul 12, 2016 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: Specify asset allocation in a Trust?
Replies: 53
Views: 2437

Re: Specify asset allocation in a Trust?

Bruce, Assuming your last post described domestic asset protection trusts, how well do they work? I have read some pieces by attorneys summarizing the laws in several states, suggesting they should be effective and always somehow concluding that whatever state corresponds to their place of practice ...
by afan
Tue Jul 12, 2016 2:38 pm
Forum: Investing - Theory, News & General
Topic: Real estate to avoid/minimize estate tax
Replies: 15
Views: 911

Re: Real estate to avoid/minimize estate tax

Of course, Hulk was suggesting the parents buy a house for him to occupy. Not that he would live with his parents at their home

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