Search found 2351 matches

by afan
Sun Feb 26, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard opens special offices for $1 million clients
Replies: 63
Views: 9404

Re: Vanguard opens special offices for $1 million clients

I find it surprising that there are only 60,000 flagship customers. I wonder whether that figure is for the $5M minimum Flagship Select group? When I have asked what one gets for transferring in enough to move from Flagship to Select, the answer has been "essentially nothing." They say tha...
by afan
Sun Feb 26, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Physician Disability Insurance
Replies: 23
Views: 1512

Re: Physician Disability Insurance

I cannot see the need to keep disability insurance until retirement. After all, if I no longer need my earned income and can retire, then I don't need the insurance. I don't know how long before retirement I will drop coverage but probably at age 65. From that point my policies only provide a year o...
by afan
Thu Feb 23, 2017 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: MRI Price [Magnetic Resonance Imaging]
Replies: 38
Views: 2900

Re: MRI Price [Magnetic Resonance Imaging]

And for those who said or thought that MRI machines cost a lot, if they charge just $1000 per scan, do five scans a day five days a week for just 40 weeks a year, that's $1,000,000 a year. So unless I'm missing something or they're replacing the machines every other year, they'll make up their inve...
by afan
Thu Feb 23, 2017 6:33 pm
Forum: Investing - Theory, News & General
Topic: "The Impending Fiduciary Armageddon Of (Most) Mutual Fund Share Classes" by Michael Kitces
Replies: 8
Views: 1658

Re: "The Impending Fiduciary Armageddon Of (Most) Mutual Fund Share Classes" by Michael Kitces

I assume that, like any well functioning market, the advisors get paid more for selling more expensive products. If the same fund has high cost and low cost shares, why would any advisor recommend the higher cost, unless getting paid to do so? Of course the secret is not to get rid of the multiple s...
by afan
Tue Feb 21, 2017 5:51 am
Forum: Investing - Theory, News & General
Topic: What Could Stop Vanguard From World Domination? - Article by Ben Carlson
Replies: 19
Views: 2628

Re: What Could Stop Vanguard From World Domination? - Article by Ben Carlson

Competition is great and I hope Schwab and Fidelity keep it up. Maybe I am a cheap date, but I have been perfectly happy with all three. I rarely need customer service so I have not noticed a change from V. I don't use branches. I do wonder how long S and F can compete on price. They have much highe...
by afan
Sun Feb 19, 2017 5:49 am
Forum: Personal Finance (Not Investing)
Topic: Moving assets to taxable accounts for inheritance
Replies: 9
Views: 1100

Re: Moving assets to taxable accounts for inheritance

Keep in mind promises to repeal the federal estate tax. Some such proposals include elimination of the stepped up basis. There are also proposals to eliminate stretch withdrawals from inherited retirement plans. The optimal strategies could change drastically if some combination of these go through....
by afan
Sun Feb 12, 2017 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Tires for an old car
Replies: 42
Views: 2629

Re: Tires for an old car

Do not buy 4 new tires before you know what it will cost to fix the problems identified so far. You could blow a lot of cash on tires only to learn the repairs will cost thousands and you are better off replacing the car.
by afan
Sun Feb 12, 2017 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Issues to think about when abandoning universal life
Replies: 3
Views: 483

Re: Issues to think about when abandoning universal life

When you say the premiums will stop at 15 years, is that at the guaranteed costs and investment results? Or some promised rates that may never happen? The latter seems more likely. You can get an in force illustration indicating the performance the insurance company GUARANTEES at your current premiu...
by afan
Sat Feb 11, 2017 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Should I still get a Fin Advisor if I only want a lazy portfolio?
Replies: 29
Views: 2288

Re: Should I still get a Fin Advisor if I only want a lazy portfolio?

Unless you have a far more complicated tax situation than you have described so far, you can definitely do your taxes yourself with standard retail software (TurboTax, HRBlock...). Even the most expensive versions are well under $100. The rest of what you are paying for a paid preparer is the conven...
by afan
Thu Feb 09, 2017 12:52 pm
Forum: Personal Consumer Issues
Topic: Hardwood floors vs Wood Look Tile?
Replies: 68
Views: 5333

Re: Hardwood floors vs Wood Look Tile?

We had hardwood (maple) in our old house while raising two young kids. Looked great for the ~10 years we had it. The house we live in now was built in the 1930's with hardwood floors in the living and dining rooms. They still look great. We have hardwood in the kitchen as well, I think that is newer...
by afan
Wed Feb 08, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: How much life and disability insurance do I need?
Replies: 10
Views: 1007

Re: How much life and disability insurance do I need?

It is unlikely that you have enough disability insurance. You would want to be well covered for your life if you became disabled. At your income level you would probably want more than $72,000/year to live on. You would have to look at your lifestyle and figure in higher costs if you were complete d...
by afan
Wed Feb 08, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: finding a good estate lawyer (nyc, westchester)?
Replies: 9
Views: 578

Re: finding a good estate lawyer (nyc, westchester)?

Re Bruce Steiner specifically and local estate planning attorney generally. The attorney need not live anywhere near you. Just needs to know the law in your area. I don't know whether Steiner does California, but he has indicated he works for people in a number of different states, not just NY, wher...
by afan
Tue Feb 07, 2017 1:00 pm
Forum: Investing - Theory, News & General
Topic: How the Bogle Model Beats the Yale Model
Replies: 28
Views: 2942

Re: How the Bogle Model Beats the Yale Model

It is meaningless to compare returns without looking at risk. There was a study that showed risk adjusted returns of the big endowment investors to be basically determined by asset allocation, nothing to do with expert managers (I think it included Harvard during the period when it was doing well, a...
by afan
Mon Feb 06, 2017 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Is it better to get a mortgage from a local/small lender?
Replies: 27
Views: 2294

Re: Is it better to get a mortgage from a local/small lender?

Your loan will probably be sold and may be sold multiple times. The owner.may farm out the servicing (collecting your payments and making escrow payments) to a third party. The one area where you might care who does your loan is how well they work leading up to and at closing. I am sure some places ...
by afan
Sun Feb 05, 2017 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Is whole life necessary with no debt?
Replies: 22
Views: 1519

Re: Is whole life necessary with no debt?

You certainly do not need whole life insurance. You need to work through your current assets, liabilities, plans for education for your kids, your income, spouses income, likelihood of getting any inheritance, expectations of supporting other family members or elderly parents and so forth. This will...
by afan
Sat Feb 04, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: High Car Insurance VS Umbrella Insurace
Replies: 16
Views: 1603

Re: High Car Insurance VS Umbrella Insurace

Definitely shop for rates but also contact your current insurer and ask what you can do to lower the premium. A lot of that coverage is for things like rental car if you need it, newer car replacement value and such that you almost certainly need not insure at all. You can also consider raising your...
by afan
Sat Feb 04, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Liability Protection -- Joint Bank Account
Replies: 7
Views: 721

Re: Liability Protection -- Joint Bank Account

Another non-attorney here, reporting what attorneys have told me. In my state all the money in the joint bank account would be available to a creditor. The logic is that the physician-spouse had the right to withdraw the entire amount, hence it belonged to them and is available to creditors. Money i...
by afan
Wed Feb 01, 2017 8:29 am
Forum: Investing - Theory, News & General
Topic: Are we misusing backtesting tools like portfoliovisualizer?
Replies: 21
Views: 1913

Re: Are we misusing backtesting tools like portfoliovisualizer?

On Sharpe ratios I completely agree. They are heavily influenced by what factors did well during the period. That is beyond the control of the managers. On factor weighting, that is under the control of the managers. One would hope to see consistent high loading of a fund that promises to track a fa...
by afan
Sun Jan 29, 2017 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Revocable trusts - Guide on how to complete tax return?
Replies: 4
Views: 373

Re: Revocable trusts - Guide on how to complete tax return?

So doing your taxes yourself will not change at all.
by afan
Sat Jan 28, 2017 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: TIAA financial advisor?
Replies: 39
Views: 2534

Re: TIAA financial advisor?

It seems the client facing parts of TIAA have been poorly run for years. I have had multiple interactions with reps who had no idea what they talking about. But we're quite insistent they were right. Sometimes comically so. I attribute this to bad management. According to comment on this thread, the...
by afan
Tue Jan 24, 2017 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Bank is behind online, new bank?
Replies: 21
Views: 2277

Re: Bank is behind online, new bank?

We use both bricks and mortar and online banks. We have found there are a lot of things the online banks either will not do at all -notarize documents- or will do with so much hassle and delay it is not worth dealing with them -certified checks. Since all banks pay effectively nothing on accounts, w...
by afan
Tue Jan 24, 2017 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: finding estate planning attorney
Replies: 3
Views: 371

Re: finding estate planning attorney

For finding an attorney, given that you have an estate large enough to generate taxes, I suggest an ACTEC fellow. The American College of Trusts and Estates Counsel is a professional organization of people who devote their careers to this area. Those named fellows are widely considered to be top exp...
by afan
Sun Jan 22, 2017 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: No home - do I need Umbrella Insurance?
Replies: 19
Views: 2560

Re: No home - do I need Umbrella Insurance?

I assume your SF agent was saying that driving represents almost all of your liability risk, so just get plenty of protection there. That is probably true, but adding umbrella protects you from any other events for which you could be sued. With your income I would shop for all three coverages renter...
by afan
Sun Jan 22, 2017 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance questions and help
Replies: 19
Views: 2042

Re: Umbrella insurance questions and help

If and when your liability coverage is exhausted, your net worth is always at risk (largely dependent on state and federal law). So, the simple answer to "how much liability insurance should I buy" is this: Buy at least as much as the dollar amount that a jury and court may award in the e...
by afan
Sun Jan 22, 2017 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Updating our wills
Replies: 5
Views: 939

Re: Updating our wills

Years ago when we started our family an excellent estate planning attorney convinced us to make our gifts to our kids outright rather than in trust. I think he did not believe we were going to be systematic in making the gifts. It was the one piece of bad advice we got. It was simple, but instead of...
by afan
Sat Jan 21, 2017 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Anyone using i-orp as a guide for withdrawals?
Replies: 20
Views: 1958

Re: Anyone using i-orp as a guide for withdrawals?

And that is my concern. If it can return results that seem plausible only to collapse on inspection, how does one know when to trust it? For me the problem was obvious on a careful look. What else was wrong that was not so obvious? In my case, the answer that "the number are too high" was ...
by afan
Fri Jan 20, 2017 5:03 pm
Forum: Investing - Theory, News & General
Topic: Mathematics of international asset allocation
Replies: 44
Views: 4395

Re: Mathematics of international asset allocation

Well the Sharpe ratio just tells you the higher US than international return over that period. But I would not count on small cap portfolios showing lower correlation. After all, these are portfolios of many stocks. Individual small caps likely have more idiosyncratic risk than do individual large c...
by afan
Fri Jan 20, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: Mathematics of international asset allocation
Replies: 44
Views: 4395

Re: Mathematics of international asset allocation

Besides the extreme portfolios produced by MVO there is the fundamental assumption that volatility is the sole appropriate measure of risk. Since there are ample data proving that investors care about and price higher moments of the return distribution, one should not consider the mean/variance opti...
by afan
Fri Jan 20, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Anyone using i-orp as a guide for withdrawals?
Replies: 20
Views: 1958

Re: Anyone using i-orp as a guide for withdrawals?

I tried i-orp and found that its recommendations were useless. At first it was exciting to seem to get recommendations for optimizing withdrawal and Roth conversion strategy. but the details were very distressing. I-orp had me making massive Roth conversions into very high tax brackets. As I varied ...
by afan
Thu Jan 19, 2017 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life or term life insurance
Replies: 5
Views: 843

Re: Whole life or term life insurance

Powermega, Can you explain why someone who thinks they are healthy would benefit from having a checkup before applying for insurance? If the medical underwriting turns something up, then the applicant may need to see a doctor for medical care and the insurance company will either offer higher rates ...
by afan
Thu Jan 19, 2017 6:20 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CEO paid $10-15 million per year
Replies: 4
Views: 1620

Re: Vanguard CEO paid $10-15 million per year

Definitely interesting and a challenge to the independence of the independent boards of directors. On the other hand, I cannot imagine any plausible figure for his salary that would convince me I would be better off with my money somewhere else. Blackrock is different. Fink was a founder and he gets...
by afan
Thu Jan 19, 2017 9:28 am
Forum: Investing - Theory, News & General
Topic: Fama, Lo on optimal portfolios
Replies: 5
Views: 1017

Fama, Lo on optimal portfolios

Pardon me if this has been posted before. https://www.youtube.com/watch?v=dj-RO4mh-wA Two famous finance professors, both of whom also have interests in the real world of asset management. In spite of this, the discussion is completely non-technical. The refer to some technical issues, but you do no...
by afan
Wed Jan 18, 2017 3:26 pm
Forum: Investing - Theory, News & General
Topic: Replicating Index with Individual Stocks vs Index Fund
Replies: 28
Views: 2562

Re: Replicating Index with Individual Stocks vs Index Fund

Exactly. If you read even the reference and if you actually go to the papers, you see that they are presenting AVERAGE behavior for LARGE NUMBERS of such portfolios. Even in the extremely brief summary you cited, it includes the critical qualifier that the random portfolios have the same volatility ...
by afan
Wed Jan 18, 2017 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: IRA in Trust?
Replies: 23
Views: 1556

Re: IRA in Trust?

Well, half and half might be the outcome of those considerations. Parents may be sure the adult children will not need the full amount in the IRAs but not comfortable leaving them nothing. It could also reflect planning around estate taxes. Leave enough to get parents up to just below the taxable le...
by afan
Wed Jan 18, 2017 12:38 pm
Forum: Investing - Theory, News & General
Topic: Replicating Index with Individual Stocks vs Index Fund
Replies: 28
Views: 2562

Re: Replicating Index with Individual Stocks vs Index Fund

Eeek! That is not true at all. You are probably thinking of studies that created A LARGE NUMBER of random portfolios and found that, on average, their aggregate performance converges towards the market. An individual portfolio that size would be expected to vary widely from the market. The only time...
by afan
Wed Jan 18, 2017 11:07 am
Forum: Investing - Theory, News & General
Topic: Mathematics of international asset allocation
Replies: 44
Views: 4395

Re: Mathematics of international asset allocation

Keep in mind that the reason the market portfolio is ex ante efficient is that no one has a way to predict a better risk adjusted return from an alternative. Everyone understands that the ex post efficient portfolio will almost always be far from the market. But no one knows what that different port...
by afan
Wed Jan 18, 2017 10:47 am
Forum: Personal Finance (Not Investing)
Topic: IRA in Trust?
Replies: 23
Views: 1556

Re: IRA in Trust?

Of course doctors may want to keep money out of their estates for malpractice protection as well.
by afan
Wed Jan 18, 2017 10:45 am
Forum: Personal Finance (Not Investing)
Topic: IRA in Trust?
Replies: 23
Views: 1556

Re: IRA in Trust?

If the IRA is in the trust, then the trustee could retain the income in the trust, paying it out to the beneficiaries only as the trustee thought appropriate. It would not require a monthly check at all, let alone in that amount. The tax consequences of keeping the money in trust can be exaggerated....
by afan
Tue Jan 17, 2017 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Inheritance and Trusts
Replies: 6
Views: 918

Re: Inheritance and Trusts

For life insurance it is that simple, unless your total estate including the insurance would get up into estate tax territory. For retirement accounts the non-spouse beneficiaries have the option to take the money out over their lifetimes. This is usually better financially if they do not need the m...
by afan
Tue Jan 17, 2017 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Inheritance and Trusts
Replies: 6
Views: 918

Re: Inheritance and Trusts

Retirement assets should name your spouse as primary beneficiary and the trust as secondary. As best I can tell, there is no reason the trust cannot be one created by your will. However, some people on Bogleheads have found some financial firms have a problem with a trust Beneficiary when the trust ...
by afan
Sun Jan 15, 2017 12:38 pm
Forum: Investing - Theory, News & General
Topic: Retired, expenses covered but still growing portfolio, why?
Replies: 46
Views: 4622

Re: Retired, expenses covered but still growing portfolio, why?

Margin of error. Expenses could be much higher than projected. Some pensions fail. Social Security can be cut. Investment returns can go south. Taxes can go up. The larger the gap between what one has and what one needs the lower the risk of coming up short. That risk is never zero but continuing to...
by afan
Sun Jan 15, 2017 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard on finding a dead person's password
Replies: 86
Views: 7219

Re: Vanguard on finding a dead person's password

Our non-retirement assets are in trusts with each of us as cotrustee for the other. At my incapacity or death my spouse would be legally entitled to manage those accounts and has access to them through my passwords. At some point would notify the financial institutions of my death, but that would no...
by afan
Sun Jan 15, 2017 9:07 am
Forum: Investing - Theory, News & General
Topic: Mathematics of international asset allocation
Replies: 44
Views: 4395

Re: Mathematics of international asset allocation

MVO produces extreme weights whether you use realized returns to find what would have been optimal in retrospect or you input similar values to estimate optimal going forward. In retrospect you know your inputs are correct. For the future you don't know what the realized values will be. One could de...
by afan
Sun Jan 15, 2017 8:37 am
Forum: Investing - Theory, News & General
Topic: Flagship Reps
Replies: 62
Views: 5279

Re: Flafship Reps

I have tried the consultation with a CFP enough out of curiosity to think I have a good sample. Much more knowledgeable sources are available here on Bogleheads.

For free, the CFP access is worth what I am paying for it. I would not pay one basis point in expense ratio for the service.
by afan
Sun Jan 15, 2017 8:33 am
Forum: Investing - Theory, News & General
Topic: Flagship Reps
Replies: 62
Views: 5279

Re: Flafship Reps

I am not sure I have ever spoken with my flagship rep. On the rare occasions that I call I talk to whoever answers the phone. I always get a message that my rep is unavailable. Who cares? I have no idea who it is anyway. But I care about low prices. How about two tiers? Basic level -deal with whoeve...
by afan
Sat Jan 14, 2017 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Best credit card for cash back
Replies: 53
Views: 12872

Re: Best credit card for cash back

Exactly.

Plus the hassle of coordinating which category on which card with my spouse would make it far more trouble than it is worth. A two percent discount on life with no extra hoops is the sweet spot for us.
by afan
Sat Jan 14, 2017 11:11 am
Forum: Personal Finance (Not Investing)
Topic: New vs. Used Car Purchase
Replies: 26
Views: 1873

Re: New vs. Used Car Purchase

Buying new is always a waste of money. There is a big depreciation from brand new to even one year old. This steep drop in value continues, less dramatically, for the next few years. Buying a relatively low mileage car at 3-5 years old seems the most economical. They should still be in good shape wi...
by afan
Fri Jan 13, 2017 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA for High Net Worth Parents?
Replies: 71
Views: 6479

Re: FAFSA for High Net Worth Parents?

Many of the small liberal arts colleges compete aggressively for students. They compete of course on academic preparation of the students, extracurriculars, etc. But they also compete to enroll students whose families will pay full price, or close to it. If giving a family that will pay full price a...
by afan
Thu Jan 12, 2017 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Chase Sapphire Reserve
Replies: 199
Views: 24098

Re: Chase Sapphire Reserve

The cost of Priority Pass Select is included in your $450 annual fee. I don't have the details, but travelling companions and family members are included. Check the fine print. For me, I doubt I will ever use it. I almost always take direct flights, no layovers waiting for a connecting flight. I wou...
by afan
Thu Jan 12, 2017 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Chase Sapphire Reserve
Replies: 199
Views: 24098

Re: Chase Sapphire Reserve

Since the whole idea was to capture the points bonus, worth more than the cost, we each got our own cards. Adding an authorized user costs money and does not give you a points bonus.. Signing up online was a snap. The approval took a few seconds less time than the couple of minutes spent filling out...

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