Search found 1973 matches

by afan
Mon Aug 29, 2016 9:54 am
Forum: Investing - Theory, News & General
Topic: Myopic loss aversion helps explain the equity premium puzzle
Replies: 8
Views: 540

Re: Myopic loss aversion helps explain the equity premium puzzle

Interesting, but I am worried about the implication of what investors are doing when they "check" their portfolios frequently. I don't know in what these people were investing, but someone who holds stocks or ETFs rather than open end funds has a regular stream of dividends coming in and w...
by afan
Mon Aug 29, 2016 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Buying house near church
Replies: 44
Views: 2346

Re: Buying house near church

Visit at many different hours, find out when they hold services, do they have a school, other programs, evening events...ask the neighbors. I grew up half a block from two large churches, facing each other across the street. As far as I could tell, they were great neighbors. Busy, somewhat, during s...
by afan
Mon Aug 29, 2016 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Questions about POA for my mother
Replies: 29
Views: 1674

Re: Questions about POA for my mother

A few articles discussing the problems people have with getting institutions to recognize POA's: http://www.wsj.com/articles/vonnegut-take-the-power-of-attorney-test-1424354781 http://www.wsj.com/articles/SB10001424052748704681904576315662838806984 http://www.wsj.com/articles/when-the-power-of-attor...
by afan
Mon Aug 29, 2016 5:06 am
Forum: Personal Finance (Not Investing)
Topic: Managing a windfall: DIY or hire an advisor?
Replies: 28
Views: 2558

Re: Managing a windfall: DIY or hire an advisor?

I suppose it is the only way to enforce the requirement to work through an advisor and to keep the advisors happy. Otherwise, one could hire an advisor, buy some DFA funds, then drop the advisor and remain with DFA forever.

Good marketing. Bad deal for investors.
by afan
Sun Aug 28, 2016 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about POA for my mother
Replies: 29
Views: 1674

Re: Questions about POA for my mother

It is all over now, but years after this happened, going through the relative's papers, I came across a series of letters with the lawyer who drafted the POA. As best I can tell, the relative had planned to get the property into the trust, with me as attorney in fact handling the transaction. Then r...
by afan
Sun Aug 28, 2016 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about POA for my mother
Replies: 29
Views: 1674

Re: Questions about POA for my mother

... In the state where my relative lived, one needed a separate POA for that specific transaction to do real estate. .... That doesn't make sense since the agent might acquire a new property subsequent to the grant of the power of attorney, which couldn't possibly be included in the power of attorn...
by afan
Sun Aug 28, 2016 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Managing a windfall: DIY or hire an advisor?
Replies: 28
Views: 2558

Re: Managing a windfall: DIY or hire an advisor?

I would not use an advisor with DFA funds for this reason: My understanding with DFA funds is that if you leave your advisor and "do it yourself", DFA will not let your add or trade or remove a small amount of money from your funds. The funds are "frozen" with the exception that...
by afan
Sun Aug 28, 2016 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about POA for my mother
Replies: 29
Views: 1674

Re: Questions about POA for my mother

Interesting. In the state where my relative lived, one needed a separate POA for that specific transaction to do real estate. A general POA was useless. We tried giving the DPOA to banks, insurance companies, brokerage firms... Every single one said they would only honor their own, which meant the D...
by afan
Sun Aug 28, 2016 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Questions about POA for my mother
Replies: 29
Views: 1674

Re: Questions about POA for my mother

Bsteiner, This situation seems to me to call for a trust for the mom now. I will take your word for it about the ease of probating a will in NJ, but what happens if there is a need to sell the house while she is alive? If the house is in a trust, the trustee can do this with little extra hassle. If ...
by afan
Sun Aug 28, 2016 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Managing a windfall: DIY or hire an advisor?
Replies: 28
Views: 2558

Re: Managing a windfall: DIY or hire an advisor?

1.35% is outrageous. As others have noted, you will give up a huge fraction of your long term returns. By managing the money yourself and using funds with expense ratios of 10 basis points or less you capture almost all of the return you would have paid to your so-called advisor. If you really don't...
by afan
Sun Aug 28, 2016 10:26 am
Forum: Investing - Theory, News & General
Topic: Fidelity competing harder w/Vanguard
Replies: 48
Views: 4773

Re: Fidelity competing harder w/Vanguard

I generally hate this form of argument, but here goes: Vanguard returns all the net revenue from securities lending to the fund. Vanguard stated this clearly and publicizes this fact. Fidelity, as best I can tell, is silent on what it does. This makes me assume it keeps as much of the revenue as it ...
by afan
Sat Aug 27, 2016 9:37 am
Forum: Investing - Theory, News & General
Topic: "Are Index Funds Eating the World?"
Replies: 36
Views: 3317

Re: "Are Index Funds Eating the World?"

As indexing continues to grow active managers find it more difficult to hold on to assets, let alone bring in new money. Since these managers get paid based on the assets the manage and the expense ratios they can charge, anything that reduces either one is a threat. Indexing targets both. If active...
by afan
Fri Aug 26, 2016 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about POA for my mother
Replies: 29
Views: 1674

Re: Questions about POA for my mother

I don't know that you are completely free of responsibility. I am not a lawyer, but I would assume the person who signs the tax returns has to be responsible. If your some day mom has full blown Alzheimers, you have the POA and you are not responsible, then who is? But having been through this, it i...
by afan
Fri Aug 26, 2016 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Can we get by without permanent life insurance?
Replies: 48
Views: 2716

Re: Can we get by without permanent life insurance?

Unfortunately, your BIL has proven that he is not capable of providing you good service in your search for insurance. Term insurance is a competitive market. There are lots of agents and many companies will sell directly to you without having to go through an independent agent. Contact a few. Tell t...
by afan
Fri Aug 26, 2016 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Should my mother surrender her insurance policy
Replies: 7
Views: 688

Re: Should my mother surrender her insurance policy

It certainly does not sound like she needs life insurance. She should be able avoid the income taxes, if any would be due, by rolling over into an annuity. She would have to get a statement from the insurance company telling her how much more the policy is worth than the sum of premiums, so she can ...
by afan
Fri Aug 26, 2016 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Transferring parent's home loan/title
Replies: 17
Views: 1186

Re: Transferring parent's home loan/title

Mortgage broker here. Here is what I would advise my clients. -Add yourself to the title via Quitclaim Deed. -Refinance the home with your mother off the mortgage. You can do this counting it as a primary residence... Fannie Mae has a clause (look up Family Opportunity Loan) where an adult child ca...
by afan
Fri Aug 26, 2016 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Home Purchase, Marriage, and Gift Tax
Replies: 6
Views: 569

Re: Home Purchase, Marriage, and Gift Tax

I was going to suggest the same thing. The marriage that counts for tax purposes is the legal one. As far as the IRS is concerned you don't need to have a ceremony at all. In fact, you could have a ceremony without actually getting married. That way you can have the wedding when it works for you, fa...
by afan
Fri Aug 26, 2016 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Medallion Signature Guarantee
Replies: 59
Views: 8850

Re: Medallion Signature Guarantee

The one exception was Bank of America. They said "as long as you have an account with us, we will do it for you". I replied "Do you mean to tell me if I go over right now and open a checking account, you will sign my papers?" ..."Yep"... TheExMex That is fascinating. I...
by afan
Thu Aug 25, 2016 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Help me find a new mortgage lender.
Replies: 9
Views: 933

Re: Help me find a new mortgage lender.

I understand the reluctance to pay closing costs, since they do not feel like they are paying off the mortgage. But from the lender's perspective the costs are there. When they offer lower closing costs what they are really ding is taking the payment in the form of a higher interest rate. You may fi...
by afan
Thu Aug 25, 2016 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

And some refer to the "living will" as directing how they want to be handled at the end of life, addressing whether to undertake extraordinary measures to keep someone alive, but just barely. What would Jack want to happen if he were in an irreversible coma? Would he want a breathing tube?...
by afan
Wed Aug 24, 2016 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Could I use a Donor Advised Fund as an alternative retirement vehicle?
Replies: 46
Views: 3038

Re: Could I use a Donor Advised Fund as an alternative retirement vehicle?

Of course, their presentation will be biased, but the large charities have development staff who will be happy to talk with you about the charitable trust options. Even at a place like Yale, I suspect $250k is enough to get their attention. Note that, unlike just about any other dealing with such an...
by afan
Tue Aug 23, 2016 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Children inheriting money
Replies: 5
Views: 1130

Re: Children inheriting money

Trust as the contingent beneficiary with the children as beneficiaries of the trust and an appropriate trustee? That would cost more for the drafting of the will, but it would avoid the need for a court appointed guardian for the property. Would an attorney include nominating a property guardian any...
by afan
Tue Aug 23, 2016 5:17 am
Forum: Personal Finance (Not Investing)
Topic: Planning for Children
Replies: 32
Views: 2392

Re: Planning for Children

Both parents need life and disability insurance. Both are relatively cheap for the typical young healthy pair starting a family. If either of you are older or have health conditions this insurance might be expensive and you would have to shop carefully. But you still need it. Getting life and disabi...
by afan
Mon Aug 22, 2016 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

We did a substantial amount of research before meeting with an attorney. Some of the work we did paid off, but I should not have been surprised, the lawyer raised all sorts of things we had not considered. A lot of our work went out the window when it turned out that some of our ideas actually would...
by afan
Mon Aug 22, 2016 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

Keep in mind that Jack already has a will, a power of attorney for finances, and a living will in place should something happen to him until the new plan is enforced. What we might be able to do right now to lessen the burden of probate (since he does not currently have a revocable living trust) is...
by afan
Mon Aug 22, 2016 5:12 am
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

In Jack's case I might urge speed over spending time doing research. Nothing described so far suggests unusual features that might call for unique solutions. Dudube and Jack could invest a lot of time in figuring out the options while losing the opportunity to act if Jack declines while they are stu...
by afan
Mon Aug 22, 2016 5:05 am
Forum: Investing - Theory, News & General
Topic: Zweig: Three New ETF ideas that actually make sense
Replies: 14
Views: 2138

Re: Zweig: Three New ETF ideas that actually make sense

The ex sector funds are an appealing idea assuming they work as intended. It is difficult for people who need this to replicate the portfolio on their own. Many such people would be forbidden to short their own company stock and strongly discouraged from shorting their own industry. The buy and hold...
by afan
Sun Aug 21, 2016 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

Concerning Jack's episode: Does not sound like something to ignore. He should consult his physician.

He should do his estate planning with an estate planning attorney. If Jack is slipping, even more important to get on it while he can.
by afan
Sun Aug 21, 2016 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

Hi, afan. I meant to follow up on this post earlier, but I forgot to do it. I apologize. ... I have to ask for one clarification in your example. Am I correct to assume that mom initially set up a grantor trust of some kind (e.g., a revocable living trust)? And, if so, such trusts (whether they're ...
by afan
Sun Aug 21, 2016 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Bypass Trust Without Dying
Replies: 4
Views: 753

Re: Bypass Trust Without Dying

You could consider a half measure in this situation. Give away, not retaining any claim on the assets, high basis investments for which the step up matters little. Retain low basis assets until they go during rebalancing or till death. You could reduce the estate somewhat like this while keeping a c...
by afan
Sun Aug 21, 2016 9:33 am
Forum: Investing - Theory, News & General
Topic: Brilliant Quant Hedge Fund has returns of S&P 500
Replies: 11
Views: 1518

Re: Brilliant Quant Hedge Fund has returns of S&P 500

That question of the nature of risk holds the single, potential, argument for hedge funds. IF you can get a clear idea of the markets in which a fund invests AND a reasonable estimate if the covariances with other assets then you might be able to get positive risk adjusted performance. This would co...
by afan
Sat Aug 20, 2016 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

Gifts above the annual limit are reported on a federal gift tax return

No tax due until you use up your lifetime limit.
by afan
Sat Aug 20, 2016 11:30 am
Forum: Personal Finance (Not Investing)
Topic: How to manage mom's life insurance payout
Replies: 12
Views: 1338

Re: How to manage mom's life insurance payout

The wife would not have to own the money if you use a trust as the beneficiary. If there are no estate tax issues and the trust protects her from creditors it might not matter. If you use a trust recognize the conflict of interest if your wife is both the trustee and an heir who gets whatever is lef...
by afan
Sat Aug 20, 2016 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Could I use a Donor Advised Fund as an alternative retirement vehicle?
Replies: 46
Views: 3038

Re: Could I use a Donor Advised Fund as an alternative retirement vehicle?

As noted above, there are not that many new tax schemes. Seems someone thought of this one, got it banned, then went belly up. Charity is charity. You give the money away and get nothing back. Mixing it with tax avoidance gets you into schemes like this. A shame about the people who were relying on ...
by afan
Sat Aug 20, 2016 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Morningstar: "How Should Younger Investors Think About Social Security?"
Replies: 34
Views: 4056

Re: Morningstar: "How Should Younger Investors Think About Social Security?"

And that is the problem with this topic for this forum. The problems are financial, but the responses for an investor depend on political moves by the government- which are out of bounds here. The only actionable element is what individuals can do. They can save more and plan for less from SS. The e...
by afan
Sat Aug 20, 2016 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Understanding I-orp Logic
Replies: 22
Views: 2014

Re: Understanding I-orp Logic

It seems estate maximization is not what ORP is about. For example, it really wants to spend all the money that is not committed to taxes on RMDs and Roth conversions. It is not clear what happens to money you earn in excess of your capped spending. It does not look at estate tax effects at all and ...
by afan
Fri Aug 19, 2016 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Personal umbrella liability insurance and Erisa accounts
Replies: 1
Views: 228

Re: Personal umbrella liability insurance and Erisa accounts

There is an active thread on the protection of rollover IRAs, but it has lead into the whole area of what plans are protected and under what circumstances. No lawyer experts have chimed in, but it appears that it is complicated. It depends on whether one looks at protection in bankruptcy or outside ...
by afan
Fri Aug 19, 2016 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Could I use a Donor Advised Fund as an alternative retirement vehicle?
Replies: 46
Views: 3038

Re: Could I use a Donor Advised Fund as an alternative retirement vehicle?

There is a major push to prevent doctors from taking pens and pads at all, not just paying for them. Many hospitals forbid their staff to accept a single cup of coffee. If it were not a conflict of interest for the doctors, drug companies wod not be eager to give them away.
by afan
Fri Aug 19, 2016 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: What is 4 more years of work worth? (Retirement Question)
Replies: 38
Views: 3518

Re: What is 4 more years of work worth? (Retirement Question)

Health care premiums on Medicare do not "go away". They will have to pay Medicare, Medigap, Drug plan premiums for each of them which could be more than the premiums they pay now. The comparison is not to what they pay now, but to what they would have to pay if they stopped working before...
by afan
Fri Aug 19, 2016 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Could I use a Donor Advised Fund as an alternative retirement vehicle?
Replies: 46
Views: 3038

Re: Could I use a Donor Advised Fund as an alternative retirement vehicle?

It clearly does violence to the concept of a charitable donation. This is giving the charity money to give back to the donor, with a tax donation wrapped in the middle. Interesting, but what if all the steps where legal? Would this be similar to the step transaction doctrine? I am not a lawyer at a...
by afan
Fri Aug 19, 2016 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Could I use a Donor Advised Fund as an alternative retirement vehicle?
Replies: 46
Views: 3038

Re: Could I use a Donor Advised Fund as an alternative retirement vehicle?

Given your commitment to this project, I suggest you contact a tax attorney and work through your options. If you bring the charity back to life you will need to comply with a long list of rules and regulations. You would need the attorney anyway- in fact, I hope you already have been getting advice...
by afan
Fri Aug 19, 2016 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Understanding I-orp Logic
Replies: 22
Views: 2014

Re: Understanding I-orp Logic

So I emailed James Welch about what seemed to me to be anomalous results. For a guy doing this for free he is remarkably prompt and helpful. I think his answer boils down to the program being for people with a certain set of goals, and it is not optimized for others. In brief: I plan to work well pa...
by afan
Fri Aug 19, 2016 4:58 am
Forum: Personal Finance (Not Investing)
Topic: What is 4 more years of work worth? (Retirement Question)
Replies: 38
Views: 3518

Re: What is 4 more years of work worth? (Retirement Question)

I have the opposite reaction to those above. Keep working. Every year they work is a year they do not draw on their savings. Every year adds to their portfolio. Every year working puts them in better financial shape than they would have been without the earned income. Someone mentioned giving up the...
by afan
Thu Aug 18, 2016 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover IRA asset protection?
Replies: 11
Views: 603

Re: Rollover IRA asset protection?

Thanks SpiritRider! Fascinating, but even more confusing. The difference between 403(b) and 401(k) comes up again, but I still don't get it. The part about 403(B) perhaps unprotected outside if bankruptcy was hard to follow. It sounds like it is still unresolved. Apparently, both 401(k) and 403(b) a...
by afan
Thu Aug 18, 2016 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover IRA asset protection?
Replies: 11
Views: 603

Re: Rollover IRA asset protection?

NMJack, Thanks for that. The problem is that "even if you declare bankruptcy" sounds like the most extreme case. But here there is a clear answer that the plan money is protected in bankruptcy by a specific federal law that says so. I cannot find a federal law addressing IRAs rolled over f...
by afan
Thu Aug 18, 2016 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

Losing the step up at my death is really bad. In fact, losing the step up at Jack's death is already bad enough, but maybe we can live with it. I say this because his portfolio is super concentrated in a few stocks. He's done VERY well, but that was pure luck.... It sounds like losing the step up a...
by afan
Thu Aug 18, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 4130

Re: Gifting whole estate in life

Jack can certainly set up a trust and be a beneficiary of his trust. That alone would not accomplish much of what you have discussed, but if he put his house in it that could avoid probate. Having all his assets in trust would make life easier if someone else had to manage his affairs as he became o...
by afan
Thu Aug 18, 2016 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover IRA asset protection?
Replies: 11
Views: 603

Re: Rollover IRA asset protection?

Mainly interested in liability. Fortunately divorce and support orders are not in the cards. But anyone can be sued for anything. I agree that insurance is an important component, but insured with exposed assets is worse than insured with protected assets. In some places I find suggestions that ERIS...
by afan
Thu Aug 18, 2016 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Could I use a Donor Advised Fund as an alternative retirement vehicle?
Replies: 46
Views: 3038

Re: Could I use a Donor Advised Fund as an alternative retirement vehicle?

Got it. So the plan is [quote]you are planning to put much more than $500k into the DAF while you are working at the main job and draw on that money as taxable income when you switch to part time work at the charity? This is in effect deferring the taxes while you have your day job and paying them w...
by afan
Thu Aug 18, 2016 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover IRA asset protection?
Replies: 11
Views: 603

Rollover IRA asset protection?

I have searched and cannot find a clear answer, but I am sure there are knowledgeable bogleheads who can provide it. I gather that if one rolls over funds from a 401(k) or 403(b) to a rollover IRA, that rollover IRA retains the asset protection of the original plan under federal bankruptcy law. I ga...

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