Search found 1676 matches

by afan
Wed May 25, 2016 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Cost for/how to understand(ing) trust documents
Replies: 26
Views: 1136

Re: Cost for/how to understand(ing) trust documents

I love it when actual trusts and estates attorneys, like Gill, clear up the speculations that those of of us are not lawyer come up with.

Having heard only brief fragments of the trust, are we on solid ground assuming it is a mess? No one knows what it actually says.
by afan
Wed May 25, 2016 11:45 am
Forum: Investing - Theory, News & General
Topic: Local bias and confusing familiar with the safe
Replies: 1
Views: 233

Re: Local bias and confusing familiar with the safe

Although I agree that this local bias probably hurts returns, I am not sure the effect is entirely negative. To take the example of public pension funds, an honest argument for local investment would be that local spending raises incomes and taxes in the municipality. So, potentially, a city might d...
by afan
Wed May 25, 2016 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Geico or State Farm - auto insurance
Replies: 16
Views: 1208

Re: Geico or State Farm - auto insurance

It seems to depend on your coverage, location and history with your current insurer. We shopped our home and auto with a number of companies and found none came close to our various long term customer and no claims discounts from SF. Others have gotten much better prices by shopping. Always a worthw...
by afan
Wed May 25, 2016 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Buying Whole Life using your RMD
Replies: 28
Views: 2047

Re: Buying Whole Life using your RMD

Can anyone think of a reason to link RMDs to buying life insurance? If you need the insurance for estate planning only in a very limited set of circumstances would this have anything to do with also taking RMDs. If you did need life insurance to pay estate taxes, the amount of insurance needed is un...
by afan
Tue May 24, 2016 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Cost for/how to understand(ing) trust documents
Replies: 26
Views: 1136

Re: Cost for/how to understand(ing) trust documents

I would start by posting some information here. Several attorneys expert in estates and trust are regular contributors and they could answer many of your questions. It would be possible to screw up asset protection or estate/GST tax provisions by doing things you are not supposed to do. I suggest yo...
by afan
Sun May 22, 2016 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Gift Tax
Replies: 4
Views: 472

Re: Gift Tax

In addition to the $14,000 from you alone, $28,000 if you have a spouse every year, you can give much more. You would file a gift tax return to use up your exemption but you would not owe tax.
by afan
Sun May 22, 2016 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding How Financial Advisors Are Compensated, by Wade Pfau
Replies: 16
Views: 1946

Re: Understanding How Financial Advisors Are Compensated, by Wade Pfau

Kitces on the CNBC list of top "fee only" advisors https://www.kitces.com/blog/9-out-of-top-10-cnbc-fee-only-advisory-firms-not-actually-fee-only-according-to-cfp-board-compensation-disclosure-rules/ More from Kitces on RIA's, "fee only" and commisions https://www.kitces.com/blog...
by afan
Sun May 22, 2016 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding How Financial Advisors Are Compensated, by Wade Pfau
Replies: 16
Views: 1946

Re: Understanding How Financial Advisors Are Compensated, by Wade Pfau

Apparently Allan Roth offers such a service and manages to make a go of it. Since he provides only advice, I would think his expenses would be a lot lower than someone who manages large amounts of other people's money. No need for a big staff. Much lower need for liability insurance. No need for exp...
by afan
Sun May 22, 2016 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Understanding How Financial Advisors Are Compensated, by Wade Pfau
Replies: 16
Views: 1946

Re: Understanding How Financial Advisors Are Compensated by Wade Pfau

Update after checking. It was the CFP, not the NAPFA, that got into a fight with its own leadership about the definition of "fee only". The comments about firms that claim to be fee only but also sell commissioned products stand. If curious, look up the ADVs of some of the firms that are a...
by afan
Sun May 22, 2016 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Understanding How Financial Advisors Are Compensated, by Wade Pfau
Replies: 16
Views: 1946

Re: Understanding How Financial Advisors Are Compensated by Wade Pfau

The article and table unfortunately are misleading. One would come away thinking that fee only advisors do not get commissions. He briefly notes that some advisors can switch between paid by client and paid by commissions, but he implies that these would be called fee based. Many firms call themsel...
by afan
Sun May 22, 2016 6:29 am
Forum: Personal Finance (Not Investing)
Topic: Understanding How Financial Advisors Are Compensated, by Wade Pfau
Replies: 16
Views: 1946

Re: Understanding How Financial Advisors Are Compensated by Wade Pfau

The article and table unfortunately are misleading. One would come away thinking that fee only advisors do not get commissions. He briefly notes that some advisors can switch between paid by client and paid by commissions, but he implies that these would be called fee based. Many firms call themselv...
by afan
Sun May 22, 2016 6:18 am
Forum: Personal Finance (Not Investing)
Topic: Same or different Executors for Spouses?
Replies: 13
Views: 767

Re: Same or different Executors for Spouses?

Even if they do agree, having both serve means they have to coordinate on everything. You could make life easier on them by having one as executor and the other as backup.
by afan
Sat May 21, 2016 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: Same or different Executors for Spouses?
Replies: 13
Views: 767

Re: Same or different Executors for Spouses?

I am intrigued. What is the point in having two different people? It would seem to invite hassle, if nothing else. It would be far easier to have one person handing the estate.
by afan
Sat May 21, 2016 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Switching to ARM
Replies: 6
Views: 637

Re: Switching to ARM

I suppose, but with rates where they are now, I would go with a fixed. That is unless you plan to completely pay it off before the rate resets.
by afan
Sat May 21, 2016 11:16 am
Forum: Investing - Theory, News & General
Topic: Any thoughts on this? [Why advisors don't like target funds]
Replies: 21
Views: 2553

Re: Any thoughts on this? [Why advisors don't like target funds]

. We can react to changing market conditions daily. ] Oh please don't do me any favors. This nonsense aside, a legitimate weakness of these funds is that not everyone shifts their risk tolerance in the same way as they age. Some people need a very conservative portfolio. Others may be investing for...
by afan
Sat May 21, 2016 9:20 am
Forum: Investing - Theory, News & General
Topic: Burton Malkiel: "I think [commodities] should be in every portfolio."
Replies: 35
Views: 2665

Re: Burton Malkiel: "I think [commodities] should be in every portfolio."

Commodities futures play a valuable role for those who produce or use the underlying commodities as a business. Farmers and cereal companies, steel companies and auto makers, for example. This lets them control their exposure to variations in spot prices and makes for more predictable costs and reve...
by afan
Sat May 21, 2016 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Rebuilding our house for $1.5M: Bad Idea Financially?
Replies: 87
Views: 7451

Re: Rebuilding our house for $1.5M: Bad Idea Financially?

Short answer- you can certainly afford it, but it sounds like a bad idea.
by afan
Sat May 21, 2016 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Rebuilding our house for $1.5M: Bad Idea Financially?
Replies: 87
Views: 7451

Re: Rebuilding our house for $1.5M: Bad Idea Financially?

How reliable is your future income? Why do you expect it to go down? Are you really willing to commit yourself to working that long and pin your financial future to maintaining that income for a long time? As others have noted, unless you are a builder, tearing down and building a new house is a maj...
by afan
Sat May 21, 2016 8:13 am
Forum: Personal Finance (Not Investing)
Topic: How do you find a trust and how much will they charge?
Replies: 12
Views: 1220

Re: How do you find a trust and how much will they charge?

It is up to you to decide what you want to do. Vanguard cannot help you choose guardians. You have to think about who you would want to take care of your kids. If you want Vanguard to manage the assets, with an individual as trustee- Vanguard Personal Advisory Service- they will help you set that up...
by afan
Fri May 20, 2016 5:28 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel: "I think [commodities] should be in every portfolio."
Replies: 35
Views: 2665

Re: Burton Malkiel: "I think [commodities] should be in every portfolio."

PCRIX was the magic fund for a while. Then it got replaced by, ...something else, I don't remember. I have to admit, I assumed that the new magic fund must have done better over the recent past than the old magic fund. Or had higher expenses or required an advisor to get in- all the other factors th...
by afan
Fri May 20, 2016 4:26 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel: "I think [commodities] should be in every portfolio."
Replies: 35
Views: 2665

Re: Burton Malkiel: "I think [commodities] should be in every portfolio."

Day9's comments mirror what was popularly discussed here in years past. The percent recommended was low and shortening the bond duration was part of the maneuver. I was never sold it was any better than leaving a 2-4 fund portfolio be. It will be interesting to see whether there is new interest the ...
by afan
Fri May 20, 2016 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving real estate to kids
Replies: 20
Views: 1603

Re: Leaving real estate to kids

Emotional attachment is not enough. There also has to be a practical plan to manage the real estate. I helped out with an estate where the last to die parent left a house. The two heirs were emotionally attached to it, but neither was going to live there. It would have been crazy to spend money main...
by afan
Fri May 20, 2016 2:33 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel: "I think [commodities] should be in every portfolio."
Replies: 35
Views: 2665

Re: Burton Malkiel: "I think [commodities] should be in every portfolio."

Distinguish Investing in gold, silver or other commodities Investing in companies that extract commodities, like gold mining companies Investing in companies that turn raw materials into commodities, like a steel company Investing in companies that use commodities, like an auto company Investing in ...
by afan
Fri May 20, 2016 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving real estate to kids
Replies: 20
Views: 1603

Re: Leaving real estate to kids

lthenderson,

What are you going to do with the land? Farm it yourselves? Lease it to someone who will work the land? Let it grow over, unattended? Are there building on the property? Will someone maintain them?
by afan
Fri May 20, 2016 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving real estate to kids
Replies: 20
Views: 1603

Re: Leaving real estate to kids

The only thing I ever saw from the property was a tax bill. You are lucky. If you are an owner, you are also liable if someone goes on the property and breaks his leg or gets shot by a hunter. My dear spouse jointly owns some property left by the parents to all the siblings, jointly. No one wants t...
by afan
Fri May 20, 2016 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: How do you find a trust and how much will they charge?
Replies: 12
Views: 1220

Re: How do you find a trust and how much will they charge?

You need three functions. 1. A person or family that will take your kids in and function as parents. Obviously, this is the most important. 2. Someone to invest the money you leave them. If following Bogleheads principles, this is quite simple, but you need a responsible entity that will be around a...
by afan
Wed May 18, 2016 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: thinking through improved financial circumstances
Replies: 3
Views: 516

Re: thinking through improved financial circumstances

Are you planning kids? If so, then there is an argument for a larger house. If you rent until you know the area, then you can make an informed choice of where you want to live, with convenience and school quality being big factors. If you are not going to have kids, then there is not much argument f...
by afan
Wed May 18, 2016 12:33 pm
Forum: Personal Consumer Issues
Topic: Major - Accounting or Finance
Replies: 41
Views: 2434

Re: Major - Accounting or Finance

It depends a lot on what you want to do- although at this stage, the student may have no informed opinion. I have been associated with several universities- all higher on the rank list than the OP describes. They are very different. One has a top business school for undergrads and offers majors in a...
by afan
Wed May 18, 2016 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Seeking help with my mother's finances
Replies: 16
Views: 912

Re: Seeking help with my mother's finances

You should see an elder attorney about updating her will and discuss the situation with respect to Medicaid. It sounds like another SPIA may make sense for her, but you need to analyze, or guess, her need for a large amount of cash upfront, vs a steady income stream. This is far from my expertise, b...
by afan
Wed May 18, 2016 9:00 am
Forum: Investing - Theory, News & General
Topic: safe alternative to stock market
Replies: 61
Views: 5528

Re: safe alternative to stock market

If you mean it about possibly needing the funds at any time then you have your answers. You are limited to investments that cannot lose value and are fully liquid. Perhaps, depending on the circumstances, you can project how much one is likely to need and when and create a CD ladder along with an on...
by afan
Wed May 18, 2016 8:23 am
Forum: Personal Finance (Not Investing)
Topic: High Earner $150k/yr. Single VS Married with Kids Take Home Salary??? Help!
Replies: 40
Views: 4335

Re: High Earner $150k/yr. Single VS Married with Kids Take Home Salary??? Help!

There is a simple way to answer this specific question. Just how simple and what it will cost depends on how your taxes were done for 2015. If you did them yourself using tax software then it is trivial. Copy your tax return file, creating a new identical return "test, after marriage". Kee...
by afan
Tue May 17, 2016 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

There is culture to be found in places like Ann Arbor and Madison, Burlington , VT, State College, PA... None of these have housing prices in the stratosphere. Different matter if you want Boston, NYC, SF. But even here, expensive as they are, one need not get anywhere close to $3M for a nice house ...
by afan
Tue May 17, 2016 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

I cannot speak for the OP, but we live in an area famous for "culture". That includes outstanding symphony, several major art museums, far too many to count professional classical music performances throughout the year, decent opera, middling ballet, and a vast range of amateur and collegi...
by afan
Tue May 17, 2016 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

Not sure starting a new thread would help. It is still a budget question- can they spend $320k, or $220k, not including mortgage principal payments, on an earned income of $350? Answer-no. Can they spend this and save for college on the same income? Answer-no. The suggestions about how to make it po...
by afan
Tue May 17, 2016 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

I agree with almost everything boglesmind said except. Harvard cost of attendance estimated for the 2016-17 year "66,900 - $72,100". The other famous colleges and universities are always pretty similar. None of them have to compete on price. This does not include anything beyond what it co...
by afan
Tue May 17, 2016 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

You can either count principal payments as an expense or savings. It all depends on how you want to view the problem. If you count it as an expense the OP ends up in a great place when the mortgage is paid off (i.e. some 60k or so/year payment disappears). If you count it as savings, you are sort o...
by afan
Tue May 17, 2016 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

If he is paying down his liability, then the future interest expense goes down - no different than if he were to receive interest from the fixed income portion of his portfolio. It is simply shifting from one part of the net worth section to the other. If the mortgage rate is higher than the return...
by afan
Tue May 17, 2016 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

This is really your opinion - Exactly. This is my opinion. That is why I said it. I’m not sure why you are so hung up on principal amount of the mortgage. Because it has to be paid. Now or later, it still has to be paid. Putting it off does not mean it does not belong in a budget. Any rational budg...
by afan
Tue May 17, 2016 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

Edit: Just checked. OP said $1.4M mortgage balance. Does not change the conclusion. I don't resent them, and I think the "middle class" line perfectly summed up the problem. Two obviously very bright capable people with successful high income careers have placed themselves in a position wh...
by afan
Tue May 17, 2016 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

The first problem is that the OP keeps talking about the mortgage, excluding the principal portion of the payment. Banks do not let you pay just the interest if your mortgage requires interest and principal paid each month. Yes, the principal payment moves savings from a checking account into real e...
by afan
Tue May 17, 2016 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

More constructive suggestions: Fund the kids education. Look up the annual total costs, not just tuition, at a few top colleges and universities- say Stanford, Princeton and Williams. Multiply by 3. Put that amount away in an education fund each year for the next 8 years. Use 8 to budget for advance...
by afan
Tue May 17, 2016 5:17 am
Forum: Personal Finance (Not Investing)
Topic: Profesional Practice Partnership Questions
Replies: 15
Views: 812

Re: Profesional Practice Partnership Questions

The language quoted so far does not say when someone becomes a shareholder. It implies not before 3 years, but does not state that everyone who sticks around becomes a partner.
by afan
Tue May 17, 2016 5:11 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

Regarding "day trading", the OP has been vague about exactly what that means. There are still many people who make this kind of income as institutional traders, the details do not matter for this discussion. The issue for the problem presented is the uncertainty of the income stream. It is...
by afan
Mon May 16, 2016 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

What if you are the POOREST in your neighborhood in spite of having a 3 million dollar house? Then, what? How to avoid that? Environment matters. Move to a cheaper neighborhood if your house is too expensive for you. Stay where you are if you like the house and can afford it. But whether you have t...
by afan
Mon May 16, 2016 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 55
Views: 7106

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

Yes, I am anxious to hear that as well. If the independence of the trustee does not matter much, as long as there is either an ascertainable standard (in some states) or a second trustee to make distributions to the beneficiary (in others), then the major reason for a corporate trustee disappears. O...
by afan
Mon May 16, 2016 10:48 am
Forum: Personal Finance (Not Investing)
Topic: New Attending Starting Out - Rent vs. Buy in HCOL area
Replies: 17
Views: 1475

Re: New Attending Starting Out - Rent vs. Buy in HCOL area

+1 No matter how sure you may be that you want to stay in the area, planning for two can change your priorities. The other consideration: do you have a noncompete? If you are just starting out, there is always a chance that something could go wrong and you want to switch jobs. If, as for name implie...
by afan
Mon May 16, 2016 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

They don't need to save for college, they're paying 180k a year right now for their 3 kids to go to private school plus a nanny. They can cash flow any school in America when the time comes, not to mention they have/will have substantial taxable investments and probably a paid off home when the tim...
by afan
Mon May 16, 2016 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 55
Views: 7106

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

Bruce, Thanks for that. Would the Tanen case have avoided a long and I assume expensive court fight if the trust had not instructed the trustee to "support" the beneficiary? It ultimately turned out the way the grantors would have wanted, but only after spending ??how much?? in legal fees....
by afan
Mon May 16, 2016 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20805

Re: Rich But Middle Class

I am still worried about the disability insurance. I think insurance companies discount volatile incomes when they determine how much they are willing to insure. They also set caps on what they will insure. I suspect, of course I don't know, that the trader's disability coverage is much less than re...

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