Search found 2638 matches

by afan
Sat Jun 24, 2017 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Need your help to pick life insurance carrier :)
Replies: 17
Views: 721

Re: Need your help to pick life insurance carrier :)

I have no opinion about those specific carriers. The last time I bought life insurance, a long time ago, USAA had very good prices and a top rating. Having policies with multiple carriers to get multiple shots at the state fund is a good idea. You do not have to buy multiple policies from each compa...
by afan
Sat Jun 24, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Is VG Total Stock Market Index too concentrated?
Replies: 51
Views: 3177

Re: Is VG Total Stock Market Index too concentrated?

So any market that allows for efficient pricing is perfectly diversified, no matter how much weight is given to one or a few individual stocks? It would be as diversified as you could get in that market. As others have noted, such market would not be diversified by world standards, but it would be ...
by afan
Fri Jun 23, 2017 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Is VG Total Stock Market Index too concentrated?
Replies: 51
Views: 3177

Re: Is VG Total Stock Market Index too concentrated?

I would say that the cap weighted index is by definition perfectly diversified. Does the same argument apply to countries like Spain, Denmark, Switzerland and South Korea, where the top 3 constituents make up 50% of the combined market cap in each country? If not, why not? I don't pay enough attent...
by afan
Fri Jun 23, 2017 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: Is VG Total Stock Market Index too concentrated?
Replies: 51
Views: 3177

Re: Is VG Total Stock Market Index too concentrated?

Isn't market cap weighting also a bet identifying stocks that will do better or worse? It just happens to be the default bet. Nope. It is not such a bet at all. The argument for market cap weighting does not depend on identifying which stocks well do better or worse. It is a bet that no one can con...
by afan
Thu Jun 22, 2017 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 62
Views: 4837

Re: Trust Services

Personally, I would choose an individual I trusted to be the trustee, and encourage them to hire the services they need to help them when the time comes. But I recognize that a trusted person isn't always available or apparent, and in that case other choices have to be made. Just give your benefici...
by afan
Thu Jun 22, 2017 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 62
Views: 4837

Re: Trust Services

I have been told that conventional bank trust departments and trust companies would rather e-sign than deal with angry beneficiaries. The problem arises when the beneficiaries cannot agree on what they want and the bank is in the middle. Or they want the bank to do something the trust does not permi...
by afan
Thu Jun 22, 2017 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Is VG Total Stock Market Index too concentrated?
Replies: 51
Views: 3177

Re: Is VG Total Stock Market Index too concentrated?

I would say that the cap weighted index is by definition perfectly diversified. Any other weighting would represent a bet that someone could out perform the market by identifying stocks that will do better or worse. This is a losing proposition. By sticking with amrket weights you get the consensus ...
by afan
Wed Jun 21, 2017 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 1032

Re: 20 pct bonus on fixed index annuity

hoops777 wrote:Would love to see it clearly illustrated on an annuity that supposedly has no fees.


Wait. Did the sales person really claim it had no fees????
That is not within the realm of possible.
by afan
Tue Jun 20, 2017 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: My LLCs: how to protect against corporate veil piercing
Replies: 4
Views: 920

Re: My LLCs: how to protect against corporate veil piercing

The logic of having the LLCs would be partly defeated by combining them into one. As it stands, liabilities of one LLC do not affect the others. If you combine them then the assets of all three are available as targets of lawsuits against any one of them. Unless you have a good reason to do otherwis...
by afan
Tue Jun 20, 2017 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Change Auto & Umbrella Insurance after 52 years?
Replies: 21
Views: 1769

Re: Change Auto & Umbrella Insurance after 52 years?

Amica should be giving you discounts to recognize your long relationship. The company has a great reputation for service, but does not often turn up as the lowest price. You should shop your insurance every few years and see what rates you can get. Do not just look at one alternative company. Shop o...
by afan
Tue Jun 20, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Question about a Will
Replies: 9
Views: 924

Re: Question about a Will

Exactly. You need to know what your dad's will actually said. If all his assets were left to his wife, then she controls them and she can leave them to whoever she pleases. There are ways your dad could have set up his estate so that his wife would benefit from the assets while she was alive, but at...
by afan
Tue Jun 20, 2017 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Tripped on this this morning - pros and cons? [HELOC as emergency fund]
Replies: 22
Views: 3304

Re: Tripped on this this morning - pros and cons? [HELOC as emergency fund]

It makes perfect sense to use a HELOC as a potential emergency fund, as long as that is not the sole plan. We had one for years for just that purpose. Never used it, but it was not intended as a global protection from any potential adverse event. It was for unexpected urgent need for money specific ...
by afan
Tue Jun 20, 2017 10:02 am
Forum: Personal Consumer Issues
Topic: is luxury car a smarter purchase?
Replies: 101
Views: 5682

Re: is luxury car a smarter purchase?

The smart purchase is always a used, high reliability, non-luxury car. By buying something several years old you avoid most of the depreciation. Lots of cars come off lease after 3-5 years. They may be in very good condition with relatively low mileage. You are not paying for the dealer markup, manu...
by afan
Fri Jun 16, 2017 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: Who takes financial chances and why is this forum so financially conservative?
Replies: 139
Views: 11808

Re: Who takes financial chances and why is this forum so financially conservative?

IMO, people should also have some FOMO (fear of missing out). I'm not going to be on my death bed wishing that I had gone to more meetings or spent more time with work emails. In my case, the answer is simple. I have known myself long enough to know what I like and the many entertainments to which ...
by afan
Fri Jun 16, 2017 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiary designations for trust
Replies: 15
Views: 961

Re: Beneficiary designations for trust

If you remember what the qualified joint trust was supposed to accomplish, I suggest describing it and getting some feedback, since you have the experts puzzled. Maybe it is simply a strange name for a perfectly appropriate trust. But maybe you have a problem. I am with you on being cheap. But I don...
by afan
Fri Jun 16, 2017 4:47 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront ignores own advice; adds Smart-Beta
Replies: 24
Views: 2386

Re: Wealthfront ignores own advice; adds Smart-Beta

Neither. I'm saying that human advisors are more likely to insist clients keep their AA constant, and not keep mucking with it. Based on my limited experience over nearly 20 years, I see my friends want to increase equity exposure late in a bull market, and tone it down right after a huge drop. I'm...
by afan
Thu Jun 15, 2017 6:13 am
Forum: Investing - Theory, News & General
Topic: Market index funds are unsustainable?
Replies: 12
Views: 2302

Re: Market index funds are unsustainable?

Well, yes. By definition market weight investing means that you do not choose which stocks to include and that you exclude none. "Don't Care what you are invested in" is a good way to describe it. You invest in the stock market, not in individual stocks. If you feel a moral aversion to cer...
by afan
Sun Jun 11, 2017 4:37 pm
Forum: Personal Consumer Issues
Topic: [Laser] diffusers - illegal? Too good to be true
Replies: 15
Views: 1268

Re: Radar diffusers - illegal? Too good to be true

Or you could save $3495 and drive legally. Plus save on insurance, traffic tickets, better gas mileage, less wear and tear on the engine, transmission and tires...
by afan
Sun Jun 11, 2017 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Keep unneeded life insurance?
Replies: 14
Views: 1141

Re: Keep unneeded life insurance?

The comparison presumes you would actually qualify for the top rate once you underwent medical underwriting. If you really are considering switching to a new policy, go through underwriting before you cancel the group policy. The group plan sounds like it is a good deal for the typical person your a...
by afan
Sun Jun 11, 2017 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a 800k house in HCOL area (Boston area) ?
Replies: 42
Views: 4119

Re: Can we afford a 800k house in HCOL area (Boston area) ?

Also consider your expected income trajectory. If you reasonably expect your income to go up significantly faster than inflation, then you should be fine. If this is the peak of your earning, then it may be tighter. When you do your projected budgets, be sure to include savings for retirement and co...
by afan
Sat Jun 10, 2017 5:30 pm
Forum: Personal Consumer Issues
Topic: Suit for [medical] residency interviews
Replies: 57
Views: 3162

Re: Suit for residency interviews

PLEASE get your suit fitted with dress shoes and have the trousers hemmed properly. So many men (even respected professionals) have slacks that are way too long and it makes for a very sloppy and unprofessional look). I just returned from a conference and saw many of the physician researcher speake...
by afan
Sat Jun 10, 2017 12:05 pm
Forum: Personal Consumer Issues
Topic: Suit for [medical] residency interviews
Replies: 57
Views: 3162

Re: Suit for residency interviews

May seem obvious, but it is extremely important to be clean and neat. Interviewers may not be favorably impressed by an expensive suit and may be put off by it. But do not show up looking rumpled. Even if you have no iron shirts, iron the night before the interview. Do not waste your money on full c...
by afan
Sat Jun 10, 2017 8:27 am
Forum: Personal Consumer Issues
Topic: Suit for [medical] residency interviews
Replies: 57
Views: 3162

Re: Suit for residency interviews

On the flip side, the residency program director in our program thinks its appropriate to wear fishnet stockings when we're interviewing residents. Here I am going to assume the program director is a woman. I agree with the advice: Look conventional. Being a resident and practicing medicine are ver...
by afan
Fri Jun 09, 2017 12:59 pm
Forum: Personal Consumer Issues
Topic: Opticians: is there any difference in quality of Costco glasses?
Replies: 37
Views: 5587

Re: Opticians: is there any difference in quality of Costco glasses?

I recently did my first online eyeglass purchase. Replacementlensexpress. I sent them an old set of frames with an outdated prescription. Uploaded a pdf of my current prescription with PD but without segment height. Two weeks later the new glasses were dropped at my door. They are perfect and much c...
by afan
Thu Jun 08, 2017 12:16 pm
Forum: Investing - Theory, News & General
Topic: Why You Still Can’t Trust Your Financial Adviser
Replies: 54
Views: 5551

Re: Why You Still Can’t Trust Your Financial Adviser

3. Charge Fee only, AUM (.50 or less), or some type of contract (?). NOOOOOO!!!!! Asset under management fees result in costs that are far too high. The advisor should no more charge an ongoing fee simply for breathing than your doctor charges you for being prepared to see you if needed. Or your la...
by afan
Thu Jun 08, 2017 5:11 am
Forum: Investing - Theory, News & General
Topic: Why You Still Can’t Trust Your Financial Adviser
Replies: 54
Views: 5551

Re: Why You Still Can’t Trust Your Financial Adviser

Many people need financial advice but few need investment advice. A simple 2-4 fund portfolio is fine. But the compensation models recognize that collecting a one-time hourly fee does not go very far for the advisor. Asset under management and commission fees generate far more revenue. So that is wh...
by afan
Tue Jun 06, 2017 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage rate discount point analysis
Replies: 5
Views: 348

Re: Mortgage rate discount point analysis

In order to do the NPV you have to assume a discount rate and how long to run the analysis. If it will take many years for the extra upfront cash flow to pay off, recall that you may move or refinance before you reach the break even point. Or that prevailing interest rates may be higher than you ass...
by afan
Mon Jun 05, 2017 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance strategy
Replies: 1
Views: 192

Re: Life insurance strategy

You need to compare your networth, expected spouse's income if you died and any benefits beyond SS and compare those to your expenses. Are you planning to fully fund your kids college? If not, then how much do you plan to pay? Do you have a mortgage? What are non mortgage costs of your house? If you...
by afan
Mon Jun 05, 2017 11:34 am
Forum: Personal Consumer Issues
Topic: Worth it to buy expensive clothes?
Replies: 90
Views: 7662

Re: Worth it to buy expensive clothes?

You can get the same clothes, same brand, same models, same sizes for a fraction of those prices. Ebay, thrift shops and clearance sales. If the combination of your build and your need to look elaborately dressed require it then have the clothes altered after buying them at 50-90% off retail prices....
by afan
Sat Jun 03, 2017 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Please critique my attorney's suggestions..
Replies: 28
Views: 4229

Re: Please critique my attorney's suggestions..

bsteiner wrote:...the vice versa, the article you cited is at best misleading.


Item 8 on that list, a trustee to take over in case of grantor's incapacity, would be something you can do with a trust and for which a will is not a substitute.
by afan
Thu Jun 01, 2017 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Is Flagship membership status worth a $50 [transaction] fee?
Replies: 40
Views: 5191

Re: Is Flagship membership status worth a $50 one time fee?

I don't see anything that is worth paying for. If you are planning to use something from Vanguard that is free for Flagship customers and costs more than $50 otherwise, then it would be worth it. Perhaps a financial plan??? They seem to be pushing their personal advisor service pretty hard, so I don...
by afan
Thu Jun 01, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Why does step-up basis apply to estates, but not gifts?
Replies: 29
Views: 1990

Re: Why does step-up basis apply to estates, but not gifts?

If it applied to gifts, families would engage in a round robin of gift giving to eliminate their capital gains. You give me your appreciated shares of AAPL and I'll give you my appreciated shares of AMZN, and poof, no capital gain tax for either of us. And the insight that even if someone is willin...
by afan
Wed May 31, 2017 7:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to seize wealth management industry with its digital platform
Replies: 3
Views: 1190

Re: Vanguard to seize wealth management industry with its digital platform

Hooray for Vanguard. But I still don't see paying an AUM fee as a good way to buy financial planning advice. A straight fee for service or hourly rate would be a far better deal for the consumer. Most of the time the AUM fee pays the advisor for doing exactly nothing.
by afan
Wed May 31, 2017 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Senility: How do you plan on protecting your money when you lose your mental capacities?
Replies: 72
Views: 5773

Re: Senility and Seductresses: How do you plan on protecting your money when you lose your mental capacities?

Spouses are cotrustees of each other's trusts and DPOA for each other. Older of our children is successor in both roles. All are perfectly capable of handling the finances, although only I am an obsessive Boglehead. As time goes by we might ask our successor to actually do something. Or the successo...
by afan
Wed May 31, 2017 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Lowering life insurance coverage as I get older
Replies: 17
Views: 1002

Re: Lowering life insurance coverage as I get older

The principle is easy, the details can be tricky. Step 1. If you have "covered" college meaning "you are not planning on using ANY of your income earned after today to pay for college" then you do not need life insurance to assure that tuition room and board are provided for. Ste...
by afan
Tue May 30, 2017 5:43 am
Forum: Personal Finance (Not Investing)
Topic: Go part time number
Replies: 69
Views: 8539

Re: Go part time number

The longer one expects to be out of the workforce the higher the ratio of assets to expenses one needs. Many estimates are based on a 20-30 year retirement. That does not mean they will work for a 40-50 year retirement. Say you have 30x annual expenses in a portfolio that you expect will grow to sup...
by afan
Mon May 29, 2017 7:21 am
Forum: Investing - Theory, News & General
Topic: Angel Investing
Replies: 16
Views: 2955

Re: Angel Investing

We have some friends who do angel investing. They even approached us about investing in a venture one of our family members set up. As best I can tell, it is much more a matter of social investment and simply socializing than a way to make a risk adjusted profit. They did not even consider it in tho...
by afan
Mon May 29, 2017 6:52 am
Forum: Investing - Theory, News & General
Topic: Real Estate: Direct vs Indirect Investment
Replies: 86
Views: 5740

Re: Real Estate: Direct vs Indirect Investment

REITs are stocks. They have a high correlation with the stock market. They are not the same as direct investment in real estate. They are more like investing in companies that invest in real estate and doing this by buying stock in real estate related companies. You get some real estate related inve...
by afan
Sun May 28, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should I cancel my whole life policy?
Replies: 79
Views: 8141

Re: Should I cancel my whole life policy?

It has been a long time since I shopped for life insurance. At the time the agents would not put anything in writing. I would email to ask a question and they would call me to discuss. It surprised me to hear that anyone would get something substantive about the policy in writing. I told my agents t...
by afan
Sun May 28, 2017 8:34 am
Forum: Investing - Help with Personal Investments
Topic: Need help before receiving inheritance
Replies: 18
Views: 2444

Re: Need help before receiving inheritance

I too was struck by the amounts being taken for current expenses. At that rate the total estate will be below the exclusion maximum fairly soon. About Celia's concerns: The attorney in fact can engage in estate planning moves, including a pattern of gifting, if the document permits it. For our durab...
by afan
Sun May 28, 2017 7:44 am
Forum: Investing - Theory, News & General
Topic: Is it investor behavior that dooms Active Mutual Funds?
Replies: 28
Views: 1513

Re: Is it investor behavior that dooms Active Mutual Funds?

Active management cannot blame poor performance on investor behavior. If that were the case then closed end funds should do better than open end. But they don't. Hedge funds, which have extended lock up periods during which investors cannot pull their money, should do better. But they don't. The evi...
by afan
Sun May 28, 2017 7:37 am
Forum: Investing - Theory, News & General
Topic: Mathematically-rigorous, yet comprehensive (assuming little prior investing knowledge), books?
Replies: 28
Views: 1489

Re: Mathematically-rigorous, yet comprehensive (assuming little prior investing knowledge), books?

Cochrane has a text "Asset Pricing" that he uses for a graduate course of the same name. I don't know which edition is current. The nice thing about textbooks is they are available used. Half, eBay or Amazon will have a good selection of books cycled through several students over the years...
by afan
Fri May 26, 2017 6:01 pm
Forum: Investing - Theory, News & General
Topic: Are all markets efficient?
Replies: 28
Views: 1597

Re: Are all markets efficient?

Would you want to invest in a truly in efficient market? It's one in which insiders have preferential information, preferential access. You're unlikely to be an insider, I know I am not. I would if I were an insider. There have long been interest and efforts to make public financial markets as effi...
by afan
Fri May 26, 2017 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 74
Views: 8382

Re: When does Saving become missing out on life?

If you were to die tomorrow, would you be happy with what you have done, or haven't done? There's always a balance. But spending time with family, friends, and doing things you love is never a "waste' of money IMO. I would not be happy with what I have done. But spending more money would not c...
by afan
Wed May 24, 2017 8:46 am
Forum: Personal Consumer Issues
Topic: When will used Rolex prices decline significantly?
Replies: 12
Views: 2532

Re: When will used Rolex prices decline significantly?

Like other luxury items, the price depends on the economy. When there is another recession the prices will decrease. If you become expert enough in the field you can try to fund underpriced watches that you can flip for profit. I suspect that is a lot more difficult than it was before the internet. ...
by afan
Wed May 24, 2017 8:18 am
Forum: Personal Finance (Not Investing)
Topic: i am my own "guy," but not sure I should advertise that
Replies: 107
Views: 13567

Re: i am my own "guy," but not sure I should advertise that

I rarely discuss investing outside the family. When I do I point people to the academic literature. Few people have the patience to read it. We have one friend who is a portfolio manager. When we first met he was eager to tell me about his approach to stock picking. When I started asking about metri...
by afan
Tue May 23, 2017 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: First attending level job but no 401k offered. What are the options?
Replies: 14
Views: 1412

Re: First attending level job but no 401k offered. What are the options?

I'm no expert, but it sounds like they could do a SIMPLE IRA, which might have a lower contribution limit than a 401(k), but it would be much better than nothing.

I would be extremely reluctant to be the third member of a married couple team. I am not sure what would reassure me about that.
by afan
Tue May 23, 2017 3:24 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg hit piece - Vanguard's Irritating Perch on the Moral High Ground
Replies: 46
Views: 6283

Re: Bloomberg hit piece - Vanguard's Irritating Perch on the Moral High Ground

I don't remember Vanguard ever claiming to be non-profit. It says it is mutually owned, which is accurate. As for this bit of nonsense, I assume active management companies place a lot more advertising with Bloomberg and that those in the active industry have more subscriptions. Just as passive mana...
by afan
Tue May 23, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Fortune 500 Financial Analyst vs CFP
Replies: 7
Views: 629

Re: Fortune 500 Financial Analyst vs CFP

There are many more promising career paths someone with your background could take. The field of financial planning is in turmoil as more investors realize that they are paying a lot of money for things of very limited value. The way to make money as a financial planner is to collect asset under man...

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