Search found 2782 matches

by afan
Fri Aug 18, 2017 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone planning on never retiring?
Replies: 119
Views: 6952

Re: Anyone planning on never retiring?

Well, I will bet you there are plenty of people, elderly or not, dying of poverty who would wish they had more money. More money might have kept them alive longer. Having a job longer would have given them more money. I am not dying at the moment, as far as I know. But I wish I had made more money o...
by afan
Fri Aug 18, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: quick estate question
Replies: 54
Views: 2298

Re: quick estate question

Paying the debts is definitely the honest solution. I hope the law requires it.
by afan
Fri Aug 18, 2017 10:09 am
Forum: Investing - Theory, News & General
Topic: International equity index has a significant amount of short-term holdings. Attain global cap weight?
Replies: 7
Views: 673

Re: International equity index has a significant amount of short-term holdings. Attain global cap weight?

That's great. But I suggest you consider the impact of errors in estimates of expected returns, correlations and volatility. These are so large compared to the few percent deviations you were worried about that they would dominate, even if the fund did not maintain perfect correlation with it's index.
by afan
Fri Aug 18, 2017 8:25 am
Forum: Investing - Theory, News & General
Topic: International equity index has a significant amount of short-term holdings. Attain global cap weight?
Replies: 7
Views: 673

Re: International equity index has a significant amount of short-term holdings. Attain global cap weight?

What grabiner said. Also note that it is kind of silly to care about 2% deviations in asset allocation considering the error bars in all the estimates that underlying them.
by afan
Fri Aug 18, 2017 7:14 am
Forum: Investing - Theory, News & General
Topic: WSJ - ... Stop Index Trackers [from] Eating the Economy
Replies: 23
Views: 2813

Re: WSJ - ... Stop Index Trackers [from] Eating the Economy

Anyone else amused by the comment that they are now putting more effort into choosing the best active managers? Now I get it. Until now no one really tried to pick good active managers. Surely anyone.who sets out to pick managers who can beat the market will succeed. All they have to do is try.
by afan
Thu Aug 17, 2017 11:04 am
Forum: Personal Finance (Not Investing)
Topic: quick estate question
Replies: 54
Views: 2298

Re: quick estate question

Someone needs to be appointed executor. I have no idea the laws in your state. But with no spouse I suspect that all the kids agreeing who that should be would make it possible for that person to be appointed. Once appointed the executor could donate the car, sell it or give it to one of the heirs. ...
by afan
Thu Aug 17, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Anyone planning on never retiring?
Replies: 119
Views: 6952

Re: Anyone planning on never retiring?

I plan to keep working as long as I can. If I live to my life expectancy then I will survive past the age at which nearly everyone in my field becomes too old to do the job. From my nonscientific observation, people who push it into the late 70's, early 80's have gone past the time that they are wor...
by afan
Wed Aug 16, 2017 10:41 am
Forum: Investing - Theory, News & General
Topic: REITs a disappointment, yet still useful
Replies: 19
Views: 2505

Re: REITs a disappointment, yet still useful

And the correlation of REIT stocks to the total stock market is not particularly low.
by afan
Wed Aug 16, 2017 8:35 am
Forum: Personal Consumer Issues
Topic: Retired Boglehead obsession with money- devil's advocate
Replies: 66
Views: 6796

Re: Retired Boglehead obsession with money- devil's advocate

Stagflation that reduces the real value of the portfolio by 50% or worse. Large increase in expenses: medical costs not covered by Medicare, increases in Medicare premiums, higher costs to have people do for you things you used to do for yourself. THEN you head for a nursing home with a quarter of t...
by afan
Wed Aug 16, 2017 5:05 am
Forum: Investing - Theory, News & General
Topic: REITs a disappointment, yet still useful
Replies: 19
Views: 2505

Re: REITs a disappointment, yet still useful

If the Sharpe ratio decreased, doesn't it mean that the returns increased more than the standard deviation? Looking at correlation without dispersion of returns is meaningless. No. If that had happened the the Sharpe ratio would have increased. Arithmetic. Given the SD increased, the Sharpe ratio c...
by afan
Tue Aug 15, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: REITs a disappointment, yet still useful
Replies: 19
Views: 2505

Re: REITs a disappointment, yet still useful

REITs do not behave exactly like equities or bonds. They are useful in a diversified portfolio because of the rebalancing power and the low correlation. Well, according to portfolio vizualizer, VNQ has a correlation with VTI of 0.78 over the period 2004 to the present. Not 1.0, but still pretty hig...
by afan
Mon Aug 14, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: What % of income to buy a car is not excessive?
Replies: 48
Views: 3250

Re: What % of income to buy a car is not excessive?

Some freshly minted MDs have negative NW for a while, but still need a nice car... Depending on where they live, they might need a car. But why would they need a "nice" car? When I started work I got the cheapest car Toyota sold in the US. I did not know any better and bought it new. But no one tho...
by afan
Mon Aug 14, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: What % of income to buy a car is not excessive?
Replies: 48
Views: 3250

Re: What % of income to buy a car is not excessive?

A better question would be what percent of your net worth to spend on a car. Much better question, but it also depends on an individual's circumstances. Early in career the networth might be quite low and even a good sound choice of an economical car would be a large share of networth. Later in car...
by afan
Mon Aug 14, 2017 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Struggling with Justifying an Expensive Car Purchase
Replies: 120
Views: 5636

Re: Struggling with Justifying an Expensive Car Purchase

OK, full Boglehead answer: Both the $35,000 and the $70,000 are far too expensive. Cars are terrible investments. Their values plummet once you drive them off the lot. You are far better off buying a used car, 3 or more years old. At that point the depreciation slows down because the "new toy" value...
by afan
Sat Aug 12, 2017 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Do I really need a trust?
Replies: 48
Views: 3885

Re: Do I really need a trust?

For the non spouse beneficiary of retirement assets the entire amount is exposed to creditors, not just the RMDs. The amounts in the plan are not protected as they are for your own retirement plan or for your spouse who inherits. If you leave, say $1M in retirement assets to your spouse then only th...
by afan
Fri Aug 11, 2017 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Do I really need a trust?
Replies: 48
Views: 3885

Re: Do I really need a trust?

It does not sound like the DIY approach is appropriate for the OP. But before deciding, I suggest you do what many of us bsteiner groupies do: Search for and read all his posts. There is a tremendous amount of expert information, explained for a lay readership. Much easier going than Choate's book. ...
by afan
Fri Aug 11, 2017 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Group Universal Life
Replies: 23
Views: 1442

Re: Group Universal Life

At least the investment side of policy performance is partly driven by interest rates in the financial markets. You may not be able to predict what they will be, but you can observe what they are. The insurance company is under no obligation to pay any more than the contract minimum, but you may wel...
by afan
Fri Aug 11, 2017 7:06 am
Forum: Personal Finance (Not Investing)
Topic: Group Universal Life
Replies: 23
Views: 1442

Re: Group Universal Life

The annual statement typically does not tell you how much you need to pay to keep the policy in force to maturity. However, it is simple to call up the insurance company and ask. But the answer is meaningful only for the guaranteed returns. That will be a lot of money. This is fine for someone who w...
by afan
Thu Aug 10, 2017 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Group Universal Life
Replies: 23
Views: 1442

Re: Group Universal Life

After a few years, you should have a handle on where the policy is going and make reasonable estimates of what premium to pay to keep it in force for whatever period you desire. Circumstances change. It is not a matter of "having a handle" on where the policy is going, that you develop after holdin...
by afan
Thu Aug 10, 2017 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with Justifying an Expensive Car Purchase
Replies: 120
Views: 5636

Re: Struggling with Justifying an Expensive Car Purchase

Actually, the OP asked a financial question and the model cars under consideration do not matter for that. $35,000 is a lot of money for a car. There are many new cars and many, many late model used cars that are safe and reliable that cost a lot less than that. $70,000 for a car is absurd. How much...
by afan
Thu Aug 10, 2017 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Group Universal Life
Replies: 23
Views: 1442

Re: Group Universal Life

The flexibility of the premiums only applies if you are willing to accept the possibility of the policy lapsing. If you want to ensure it is permanent, the presumed reason for cash value insurance, then you have to pay premiums high enough to keep the policy in force. UL can be a better deal than wh...
by afan
Thu Aug 10, 2017 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with Justifying an Expensive Car Purchase
Replies: 120
Views: 5636

Re: Struggling with Justifying an Expensive Car Purchase

There are nice cars that don't cost way too much; for example, an Acura TLX. Is it really worth spending the extra few tens of thousands (almost double) on, say, a BMW 5-series which is admittedly a nicer car? Would you really want to keep a BMW for 10 years, and what would be the expense/hassle of...
by afan
Thu Aug 10, 2017 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with Justifying an Expensive Car Purchase
Replies: 120
Views: 5636

Re: Struggling with Justifying an Expensive Car Purchase

Cars come off lease at 3, 4 and 5 years. Get one used.
$35,000 is a huge amount of money to pay for a car. $70,000 is absurd.

Since it will be your child mobile, start with a list of IIHS Top Safety Picks, look for ones with relatively low mileage and pay a lot less than $35,000.
by afan
Wed Aug 09, 2017 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Group Universal Life
Replies: 23
Views: 1442

Re: Group Universal Life

https://ibb.co/ihBPsF Please see the snapshot of the withdrawal process. In that example the return is nowhere close to 6% per year. It shows a monthly cash contribution of $100 for 5 years= $6,000 invested. With interest after 5 years the cash value is $6,360. So total accumulation of interest is ...
by afan
Wed Aug 09, 2017 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: is malpractice insurance provided by academic medical center sufficient?
Replies: 8
Views: 502

Re: is malpractice insurance provided by academic medical center sufficient?

If you are at a large academic medical center, some of those have their own captive insurance companies. In that case the insurer is a good source of information. You could call them up and ask. If your center uses a standard commercial carrier, they may be tempted to give you the hard sell to buy m...
by afan
Wed Aug 09, 2017 5:21 am
Forum: Investing - Help with Personal Investments
Topic: Never Needing to Withdraw Capital?
Replies: 8
Views: 1295

Re: Never Needing to Withdraw Capital?

The future will be different than the past in unpredictable ways. But based on the past both scenarios would be highly likely to last throughout a 30-40 year retirement. When you talk about perpetuity you start running out of data on which to base projections. There have not been many runs of financ...
by afan
Tue Aug 08, 2017 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Group Universal Life
Replies: 23
Views: 1442

Re: Group Universal Life

If I understand, you would pay $75/month to get the death benefit coverage and any extra you put in would earn6%. Is that correct? No premium tax, fees or expenses charged against the amonut above $75? If that is the case, then ask whether $75/month is a good price for that amount of insurance based...
by afan
Tue Aug 08, 2017 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: What criteria warrants a need for Living Revocable Trust?
Replies: 39
Views: 3330

Re: What criteria warrants a need for Living Revocable Trust?

I would think the real estate in multiple states would be reason enough for a living trust.
by afan
Tue Aug 08, 2017 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: kids think lazy if retire?
Replies: 70
Views: 7751

Re: kids think lazy if retire?

I have a lot more than 30x expenses and I have no intention of retiring in the foreseeable future. Life is complicated and assuming that figure is enough for 50 years of retirement is foolish. All sorts of bad things can happen over that long a time. Work to 70 or 75, cutting the duration of retirem...
by afan
Tue Aug 08, 2017 5:00 pm
Forum: Investing - Theory, News & General
Topic: The Only Thing Wrong with Active Management is the Fees - Bloomberg Article
Replies: 26
Views: 2900

Re: The Only Thing Wrong with Active Management is the Fees - Bloomberg Article

If you either compute risk adjusted returns or do a multifactorial regression then you account for the effects of managers going outside some benchmark. This is far cleaner then picking a narrow index and ignoring the effects of managers putting some of their funds elsewhere. This is why the whole "...
by afan
Mon Aug 07, 2017 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Buying parents home and estate planing
Replies: 17
Views: 1238

Re: Buying parents home and estate planing

I second the suggestions to look at the big picture. Overall budget, whether staying the house makes sense, if it does, various approaches to making ends meet, whether either of them should continue/return to working, should they move into a retirement home now. But you should really talk with an el...
by afan
Mon Aug 07, 2017 5:05 am
Forum: Personal Finance (Not Investing)
Topic: How do I find a competent Estate Attorney?
Replies: 8
Views: 914

Re: How do I find a competent Estate Attorney?

ACTEC fellow is a reliable way to go. If your bank has a big trust department you could talk to them. Tell them you need to do estate planning, ultimately will need a trust, but first you need a lawyer. The trust department deals with estate attorneys all day long and should know who is good. Even b...
by afan
Mon Aug 07, 2017 5:00 am
Forum: Personal Finance (Not Investing)
Topic: Buying parents home and estate planing
Replies: 17
Views: 1238

Re: Buying parents home and estate planing

From what you describe, it seems unlikely there will be any inheritance tax. Your parents are far below the federal estate tax exclusion and I don't know of any state that taxes estates that small. Of course, you need to check this for your parents' state. Adding yourself to the deed would give you ...
by afan
Sun Aug 06, 2017 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: What criteria warrants a need for Living Revocable Trust?
Replies: 39
Views: 3330

Re: What criteria warrants a need for Living Revocable Trust?

Can I add a question? If you have young children and in the event of death of both spouses life insurance would go to them, do you need a living trust to title the insurance to? Or can your will establish trust for the child and the life insurance be titled there? Bsteiner can elaborate on the deta...
by afan
Sun Aug 06, 2017 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: What criteria warrants a need for Living Revocable Trust?
Replies: 39
Views: 3330

Re: What criteria warrants a need for Living Revocable Trust?

it's interesting how prior to ATRA 2012, one of the primary reasons for creating a trust was for estate tax purposes (By pass; credit shelter, etc.). Everything else was secondary. (Asset protection, privacy, speed, investment management, etc......). Now, with the $5.5 M exemption and with portabil...
by afan
Sun Aug 06, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Best mortgage shopping for refinance
Replies: 6
Views: 500

Re: Best mortgage shopping for refinance

I have used Zillow to shop for rates. No need to identify yourself in any way, so it does not generate spam. Check with your current lender and your current bank if they are different. There is at least a chance of a competitive rate. I have tried Bankrate but too often found you had to fill in your...
by afan
Sun Aug 06, 2017 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 203
Views: 9735

Re: Do you count vehicle equity in net worth?

If our cars represented a significant part of our networth then I would count them. Just as I do not update my networth every I fill up my car with gas by subtracting $30, or attempt to appraise our plates and cups, I don't bother estimating the contribution to networth of things that have so little...
by afan
Sun Aug 06, 2017 10:12 am
Forum: Investing - Theory, News & General
Topic: The Only Thing Wrong with Active Management is the Fees - Bloomberg Article
Replies: 26
Views: 2900

Re: The Only Thing Wrong with Active Management is the Fees - Bloomberg Article

That presentation showed Vanguard funds vs peer group averages. Those data tell us nothing about low cost funds vs indexes. Peer group averages and indexes are not the same thing. It is not mathematically possible for active managers as a whole to beat the market averages. It is possible for the sub...
by afan
Sat Aug 05, 2017 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for getting out of Northwestern Mutual
Replies: 19
Views: 1605

Re: Strategy for getting out of Northwestern Mutual

Unless your 1 and 2 year old kids are precocious professional soccer players whose massive contracts are supporting the family they do not need life insurance. Not whole life, not term, not universal. The insurance amounts on their lives and the premiums should be exactly zero. You and spouse each n...
by afan
Sat Aug 05, 2017 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Moving away from EJ to where?
Replies: 28
Views: 2255

Re: Moving away from EJ to where?

I love Vanguard because they focus more on cost than the other firms you are considering. Even as Fidelity and Schwab cut their index fund expense ratios just below those of Vanguard they do not handle securities lending in as favorable manner. This can more than make up one or two basis points in e...
by afan
Sat Aug 05, 2017 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion in a high tax bracket?
Replies: 21
Views: 1719

Re: Roth conversion in a high tax bracket?

You could save a lot by moving to a state with no or much lower income tax rates. Of course, many people cannot do this and keep their current jobs, or simply would not want to.
by afan
Sat Aug 05, 2017 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion in a high tax bracket?
Replies: 21
Views: 1719

Re: Roth conversion in a high tax bracket?

If you run the business, one approach might be to take more of your compensation in the form of increased value of the business-i.e. unrealized capital gain, which is not taxable- rather than in the form of cash paid to you, which is taxed at the top marginal rate. Depending on the nature of the bus...
by afan
Fri Aug 04, 2017 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Asset Protection - ERISA and Rollover IRA
Replies: 4
Views: 483

Re: Asset Protection - ERISA and Rollover IRA

The protection in non bankruptcy cases will be different than the bankruptcy laws. In bankruptcy, depending on your state you may have more protection under state or federal law. I had the same question about protection of rollover IRA va 401(k) and could not find the answer in my research. I ended ...
by afan
Fri Aug 04, 2017 4:52 pm
Forum: Investing - Theory, News & General
Topic: The Only Thing Wrong with Active Management is the Fees - Bloomberg Article
Replies: 26
Views: 2900

Re: The Only Thing Wrong with Active Management is the Fees - Bloomberg Article

Nearly all active managers beat their benchmarks before fees? One need not bother with tis nonsense. Need not look at sloppy (to put it kindly) work with no definition of how one determined benchmark, no discussion of survivorship bias, not even a statement of how alpha was calculated. Single factor...
by afan
Fri Aug 04, 2017 11:46 am
Forum: Personal Finance (Not Investing)
Topic: How far off are Zillow's estimates?
Replies: 82
Views: 7332

Re: How far off are Zillow's estimates?

In my neighborhood the Zillow performance has been consistently better than Redfin or Trulia in predicting sales prices. HOWEVER, the Zillow performance has been all over the map. There would be long periods when it did remarkably well, followed by wild swings in the estimated prices of all the hous...
by afan
Fri Aug 04, 2017 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for getting out of Northwestern Mutual
Replies: 19
Views: 1605

Re: Strategy for getting out of Northwestern Mutual

At your income level you are likely to end up giving a lot of money to your kids over time. I suggest setting up trusts for your kids and giving the money to the trusts. This is infinitely better than the whole life policies. It is also better than the uniform trusts/gifts accounts since the money r...
by afan
Thu Aug 03, 2017 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Accountant/Planner fees during estate transfer
Replies: 18
Views: 1080

Re: Accountant/Planner fees during estate transfer

For the one estate for which I served as personal representative we did not use an accountant at all. I had an enrolled agent do the tax returns (income and estate), since as a one off thing I was not interested in learning how to do that. I think the returns together were about $1,000-2,000. Other ...
by afan
Thu Aug 03, 2017 5:05 am
Forum: Personal Consumer Issues
Topic: Should I spend 5k annually on travel?
Replies: 74
Views: 7197

Re: Should I spend 5k annually on travel?

NO. Far too expensive. Get your priorities in order. Although maxing out tax favored retirement programs is an important part of a financial plan, that does not mean it is all you need to save for retirement. You should be putting away more money in your taxable savings each year than you put in you...
by afan
Thu Aug 03, 2017 4:55 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust Plan Thoughts?
Replies: 56
Views: 4531

Re: Will/Trust Plan Thoughts?

Bsteiner, under this design where the size of the IRA's determines whether they go outright or in trust: Is there a way for the trustees or heirs to make that decision at the parents' death? Or does that have to be written into the beneficiary designation or the will or trusts? The amounts in the re...
by afan
Wed Aug 02, 2017 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust Plan Thoughts?
Replies: 56
Views: 4531

Re: Will/Trust Plan Thoughts?

I agree that you don't want a huge number of trusts, but, again, it is not that complicatrd. Think of it as having another brokerage aaccount. The trust Amy need to file a tax return, but it would be a simple one unless you chose to invest in such a way that it was complex. Keep that the Senate Fina...