Search found 2096 matches

by afan
Tue Sep 27, 2016 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Reason NOT to wait past 66 to take Social Security
Replies: 48
Views: 4544

Re: Reason NOT to wait past 66 to take Social Security

Unfortunately, some people who are eligible for SS know they are in poor health and very unlikely to live long enough for delaying to pay off. For them it makes sense to start earlier. Some people are in good health at 62, but have terrible family histories, with few people living past 70. They then...
by afan
Tue Sep 27, 2016 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab vs Vanguard
Replies: 30
Views: 3349

Re: Schwab vs Vanguard

If you stay at Schwab and use the ETF's, keep in mind that they are smaller and less liquid than the Vanguard ETF's. This will matter somewhat no matter the size of your portfolio or the frequency of trading. In a large portfolio or many purchases the difference can add up. Other than that, I don't ...
by afan
Tue Sep 27, 2016 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: My broker has only assets slightly over 1 million USD, should I be worried?
Replies: 19
Views: 2810

Re: My broker has only assets slightly over 1 million USD, should I be worried?

Based on the above comments, a first order of business could be to call and verify the assets of your broker. I confess that I'm more concerned that you have a broker at all than that your broker has too few assets. As a Boglehead, I trade individual stocks rarely if at all. When I buy ETFs, I used...
by afan
Tue Sep 27, 2016 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 52
Views: 2276

Re: Best way to manage irrevocable trust?

Any chance of appropriately anonymizing and sharing the rest of his instructions?
We all have a lot to learn from him.
by afan
Tue Sep 27, 2016 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 52
Views: 2276

Re: Best way to manage irrevocable trust?

Is there any reason not to just empty the estate and split any remaining expenses with my sister, whether out of personal accounts or using assets in the newly created trusts? My sister and I get along extremely well and there is absolutely no risk of conflict. This would also allow more money to r...
by afan
Tue Sep 27, 2016 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 52
Views: 2276

Re: Best way to manage irrevocable trust?

messed up the formatting. Please ignore
by afan
Mon Sep 26, 2016 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 52
Views: 2276

Re: Best way to manage irrevocable trust?

Trust distributions and tax rates: For simplicity, let's say that there is one beneficiary, that the beneficiary is in the 28% bracket and will remain in that bracket even if the trust distributes all the income. Let's say that there is enough income in the trust to get it to the top tax bracket. So...
by afan
Mon Sep 26, 2016 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 52
Views: 2276

Re: Best way to manage irrevocable trust?

Vanguard PAS: You could certainly do worse. But it will be hard for them to do anything for you that you can not do just as easily yourself. They will put you in a small number of low cost index funds, which is exactly what you want. Once that is done, they will do nothing. That is also what you wan...
by afan
Mon Sep 26, 2016 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1097

Re: Revocable Marital Trusts - what goes in them?

You definitely need an experienced attorney who knows the laws in all three states. Or you need one who knows NH and MA and another to help with HI. You probably would want the real estate other than you primary residence in LLC's. But you need the help of someone who knows the laws of the relevant ...
by afan
Mon Sep 26, 2016 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Handling house sale proceeds, am I being paranoid?
Replies: 6
Views: 492

Re: Handling house sale proceeds, am I being paranoid?

That is the better way to handle it, but do not freak out. As far as I know, although the FDIC limit means something, in the many bank failures that took place after the crash, I think depositors were made whole as new banks took over the ones that went down. That means, your credit union is not lik...
by afan
Mon Sep 26, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 52
Views: 2276

Re: Best way to manage irrevocable trust?

Whether the RMD's stay in the trust or must be distributed to the beneficiaries depends on the terms of the trust. They can be written either way. From his posts on the subject, I assume bsteiner would make it an "accumulation" trust, which would give you the choice. There are some advanta...
by afan
Mon Sep 26, 2016 5:31 am
Forum: Personal Finance (Not Investing)
Topic: latest scandal has me thinking of leaving Wells Fargo
Replies: 36
Views: 3030

Re: latest scandal has me thinking of leaving Wells Fargo

It makes sense to jump ship because WF has proven it cannot be trusted. But, call me a cynic, I doubt they are the only bank to have done this. If it would be a hassle to switch, at least give it a while to see whether stories emerge about the competition. You could find yourself going from bad to w...
by afan
Mon Sep 26, 2016 5:24 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1097

Re: Revocable Marital Trusts - what goes in them?

If the plan offers free services from this lawyer, it could be useful or not depending on the OP's needs and the lawyer's skills. If the plan simply pays for legal services from an attorney of the OP's choice, then the OP should look for an appropriate expert. The confusion in the post might reflect...
by afan
Sun Sep 25, 2016 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1097

Re: Revocable Marital Trusts - what goes in them?

Your retirement account cannot be in your trust. Since the account has named beneficiaries, it will not go through probate. You could have a trust as the beneficiary. If you have a substantial amount of money in such accounts, then having a trust as the contingent beneficiary after your wife can be ...
by afan
Sun Sep 25, 2016 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Can Living Trust persist after one's death?
Replies: 7
Views: 595

Re: Can Living Trust persist after one's death?

Yes. Doing something like that is pretty common. You will need a lawyer who knows what they are doing and you will need to address things like who will be the trustee. If your niece might be a minor after you and your wife have died, then some adult would have to be trustee.
by afan
Sun Sep 25, 2016 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Estate tax, joint account questions
Replies: 11
Views: 423

Re: Estate tax, joint account questions

Your mother can make a gift to your child. It should be in some sort of trust, since the baby cannot exercise control over the money. Again, thinking down the road, a UTMA might be a solution, but these become the child's money later, potentially creating another asset protection and estate tax issu...
by afan
Sun Sep 25, 2016 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Estate tax, joint account questions
Replies: 11
Views: 423

Re: Estate tax, joint account questions

Other things to deal with now, if not done already. Assuming you are the person managing affairs for your mom, you need to be appointed trustee of her trust and given power of attorney over her IRA. If both you and your sister take care of things for her, then you should both be appointed. If you ar...
by afan
Sun Sep 25, 2016 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Estate tax, joint account questions
Replies: 11
Views: 423

Re: Estate tax, joint account questions

The list of things bsteiner outlined will require help from an attorney expert in estates and trusts, some of them must be done while your mom is still alive. While you are at it: Depending on how much is in the IRA, your mother may want to create a trust to be the beneficiary, rather than having it...
by afan
Sat Sep 24, 2016 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Can adult child gift money back to parent?
Replies: 31
Views: 3454

Re: Can adult child gift money back to parent?

juice, Thank you for beating me to it. Please do not take a perfectly legal action and commit a crime trying to cover it up. As long as the recipient is under no obligation to pay the money back it is not a loan. You have made it clear that this is a gift. At some point in the future, if things go a...
by afan
Sat Sep 24, 2016 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: LLC's business account titled Transfer on Death: any issues with that?
Replies: 6
Views: 347

Re: LLC's business account titled Transfer on Death: any issues with that?

Not clear what you have done. Since your LLC cannot die, the TOD could not come into effect. If you are the sole member of the LLC it may go out of business when you are no longer around to run it, but it seems you still need a plan for who owns it when you pass. Have you talked to a lawyer about th...
by afan
Sat Sep 24, 2016 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Automobile in irrevocable trust to limit liability
Replies: 33
Views: 1707

Re: Automobile in irrevocable trust to limit liability

So if you lend your car to someone who has no insurance (they don't own a car), and there's an accident you don't think you'll get sued for any damages?? I don't have an opinion. I am not a lawyer at all, let alone an expert in personal liability. I was repeating what an expert lawyer told me. We w...
by afan
Fri Sep 23, 2016 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Automobile in irrevocable trust to limit liability
Replies: 33
Views: 1707

Re: Automobile in irrevocable trust to limit liability

This may vary by state law. We asked our attorney who should own our cars. She said that ownership did not matter. In our state the liability goes to the driver, not the owner. YMMV
by afan
Fri Sep 23, 2016 2:27 pm
Forum: Investing - Theory, News & General
Topic: Harvard Endowment Losses Tied to Value Stocks
Replies: 57
Views: 4769

Re: Harvard Endowment Losses Tied to Value Stocks

There are certainly a lot of Harvard graduates in finance, but the field is far too competitive to give someone a leg up on that basis. But I have long suspected the fascination with active management comes from big donors and board memberswho are in that field. They believe in it, after all, it mad...
by afan
Fri Sep 23, 2016 1:15 pm
Forum: Investing - Theory, News & General
Topic: The states we won't buy munis from, update
Replies: 50
Views: 5709

Re: The states we won't buy munis from, update

This is interesting. Larry thinks many states have credit ratings higher than they deserve, apparently due to widely known underfunded pension obligations. I am sure the credit rating agencies would claim they take this into account when they issue ratings, but who knows whether they give this conce...
by afan
Fri Sep 23, 2016 11:47 am
Forum: Investing - Theory, News & General
Topic: Harvard Endowment Losses Tied to Value Stocks
Replies: 57
Views: 4769

Re: Harvard Endowment Losses Tied to Value Stocks

The HMC report is even more depressing. They have been underperforming for years. So they keep reminding us of the ever more remote good times. The glory years, produced by people who do not work there anymore, is taken as proof of the value of the overall approach, including active management and s...
by afan
Fri Sep 23, 2016 10:32 am
Forum: Investing - Theory, News & General
Topic: Harvard Endowment Losses Tied to Value Stocks
Replies: 57
Views: 4769

Re: Harvard Endowment Losses Tied to Value Stocks

The NYT article takes as given that performance is driven by a collection of "good" active managers. Lots of talk about the negative effects of staff turnover and reviews of the investment results of candidates for the job of running the endowment. Maybe a few more years of bad returns and...
by afan
Fri Sep 23, 2016 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Threshold for pre-notifying credit card companies?
Replies: 40
Views: 2455

Re: Threshold for pre-notifying credit card companies?

I view this as more valuable than a problem. Once they actually did catch someone who had managed to get his hands on my credit card number, but his spending did not match my profile. Years ago I used to run into these holds on purchases occasionally. I don't remember how they managed them then, but...
by afan
Fri Sep 23, 2016 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Citigold minimum increasing to $200,000
Replies: 39
Views: 6922

Re: Citigold minimum increasing to $200,000

This is one area where competition helps. I do find the occasional need for bricks and mortar, so we keep a checking account in one of the giant banks with branches everywhere. Every now and then that comes in handy. By doing direct deposit and a minimum balance, I don't remember how much, we pay no...
by afan
Thu Sep 22, 2016 4:42 pm
Forum: Investing - Theory, News & General
Topic: Morgan Stanley explains why the S&P500 wins
Replies: 13
Views: 2135

Re: Morgan Stanley explains why the S&P500 wins

Of course the argument itself makes no sense. Of course it does not excuse active managers from seeing and investing on this theory. Of course it does not help with the more important comparison to the total stock market. Of course it reports the "returns" before costs and fees (including ...
by afan
Thu Sep 22, 2016 3:30 pm
Forum: Investing - Theory, News & General
Topic: Schwab now offering low cost Target Date funds
Replies: 24
Views: 2291

Re: Schwab now offering low cost Target Date funds

Unless I misunderstand what they are doing, I would think Schwab would buy creation units for the ETF's, rather than picking them up in the open market. They should avoid the spread. Again, note the lower-than-Vanguard fee is a net expense ratio after a waiver. The gross ER is higher than Vanguard f...
by afan
Wed Sep 21, 2016 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance Plan Help
Replies: 19
Views: 1807

Re: Inheritance Plan Help

We set things up to go to our kids after the second death. That was when the first child was an infant. No discussion with the child would have been possible, let alone fruitful. If the daughter ends up making so much money that the parental inheritance is meaningless, she can give it to charity. Bu...
by afan
Wed Sep 21, 2016 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance Plan Help
Replies: 19
Views: 1807

Re: Inheritance Plan Help

Re: Loans and trusts. This may be a state law difference. Our attorney did mention that moving a piece of real estate that had a mortgage into a revocable trust would require the mortgage holder's permission. She presented not as a firm block to doing that, just a business decision by the bank. If m...
by afan
Wed Sep 21, 2016 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance question
Replies: 11
Views: 1548

Re: Umbrella insurance question

If you have only the condo, then see how much liability coverage you can get in your insurance policy for the condo. That might be enough to cover you for your exposure. Make sure the insurance company knows that this is an investment property, not your residence. If you go that route, you may not n...
by afan
Wed Sep 21, 2016 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance Plan Help
Replies: 19
Views: 1807

Re: Inheritance Plan Help

We have had the bulk of our taxable assets in living trusts for decades. No hassle at all. No different from holding them directly. It is just what you write on the form when you open an account. We hold our house as tenants by the entirety, so not in trust. But that is not to avoid hassle. As far a...
by afan
Wed Sep 21, 2016 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Inheritance Plan Help
Replies: 19
Views: 1807

Re: Inheritance Plan Help

You should discuss this with an estate planning attorney. I don't think your desires are at all uncommon, at least to a lawyer who is an expert in this field. No one can give you a perfect plan right now because "it depends." If you have enough assets that there is no realistic concern abo...
by afan
Tue Sep 20, 2016 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Should we switch to Amica & increase our Homeowners/Umbrella coverage?
Replies: 11
Views: 816

Re: Should we switch to Amica & increase our Homeowners/Umbrella coverage?

We had a house underinsured based on construction costs. It took some prodding, OK a LOT of prodding, but our insurer finally agreed to go over the house in detail and calculate a replacement cost. It was a lot of work on my part to gather all the information. Then the rep at the insurer had to ente...
by afan
Tue Sep 20, 2016 11:50 am
Forum: Investing - Theory, News & General
Topic: The Incredible Shrinking of Alpha continues--the latest SPIVA scorecard
Replies: 12
Views: 1550

Re: The Incredible Shrinking of Alpha continues--the latest SPIVA scorecard

CNBC, like all other commercial TV, sells advertising. If they started talking, daily, about the poor performance of active investing, the superior performance of indexing, the lower costs, etc, they would quickly go out of business. If you notice their commercials, they are full of "active tra...
by afan
Tue Sep 20, 2016 11:39 am
Forum: Investing - Theory, News & General
Topic: The states we won't buy munis from, update
Replies: 50
Views: 5709

Re: The states we won't buy munis from, update

I don't own any Baird funds, and their expense ratios are too high for me. That said, they only promise to "primarily" invest in prerefunded, GO and essential service revenue bonds. They indicate that they are overwhelmingly in AAA and AA bonds, but have small amounts in lower rated debt. ...
by afan
Mon Sep 19, 2016 7:29 pm
Forum: Investing - Theory, News & General
Topic: The states we won't buy munis from, update
Replies: 50
Views: 5709

Re: The states we won't buy munis from, update

afan Actually if you buy small lots you get higher yields if are patient buyer and know what you are doing. Ah, but that "know what you are doing" may be a trivial matter when you are Larry and have been doing this as a full time job for years. When you look at quotes everyday and figurin...
by afan
Mon Sep 19, 2016 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: How do you view money over and above your number?
Replies: 47
Views: 4365

Re: How do you view money over and above your number?

2.75% means that if your money was only invested to match inflation, it would last 36.4 years....meaning when you're 92.4 years old. Now, I know life expectancy increases and all....but 2.75% seems excessively conservative, Of the four parents of my spouse and myself, two lived longer than this. Ne...
by afan
Mon Sep 19, 2016 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Questions for Insurance Salesman on Whole Life Policy
Replies: 59
Views: 3757

Re: Questions for Insurance Salesman on Whole Life Policy

For term policies simply not paying the premium would end the policy. For permanent life with nonzero surrender value, I would think that you face two issues 1. If you don't pay the premium they will take it out of the cash value. 2. Once you pay the premium your cash value goes up, then they take m...
by afan
Mon Sep 19, 2016 4:57 pm
Forum: Investing - Theory, News & General
Topic: The states we won't buy munis from, update
Replies: 50
Views: 5709

Re: The states we won't buy munis from, update

Buying an all states fund is safer than buying a one state fund. So you are saying that a multi-state fund with a AA rating is safer than a single state, AAA rated fund? Your definition of "safety" is a lot different than mine. I certainly think that a multistate AA fund is safer than a s...
by afan
Mon Sep 19, 2016 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: High Income/Wealthish annual expenses framework
Replies: 11
Views: 1542

Re: High Income/Wealthish annual expenses framework

if you want your kids to share the view that money and career are the most important things in life, this is the best solution. Does not even have to be "the most important". Just that working for a living is among several priorities that most people would want their kids seeing their par...
by afan
Mon Sep 19, 2016 11:21 am
Forum: Personal Finance (Not Investing)
Topic: High Income/Wealthish annual expenses framework
Replies: 11
Views: 1542

Re: High Income/Wealthish annual expenses framework

If you have 3 kids and a wife, you might find a 2/3 bedroom flat to be a bit cramped and find that you need a 8k/month flat:) And i don't see how the 5 of you are flying business class 5x year and spending 90 nights in hotels for only 40k/year. Agreed about the home. That may seem like a lot of spa...
by afan
Mon Sep 19, 2016 10:56 am
Forum: Personal Finance (Not Investing)
Topic: High Income/Wealthish annual expenses framework
Replies: 11
Views: 1542

Re: High Income/Wealthish annual expenses framework

If you have kids, then the amount of travel you propose would either mean being away from your family a lot, or inflicting a lot of disruption on your children. They will want to have regular schedules, spend time with their friends, go to music lessons and soccer on the weekends... If you enjoy tha...
by afan
Mon Sep 19, 2016 10:33 am
Forum: Investing - Theory, News & General
Topic: The states we won't buy munis from, update
Replies: 50
Views: 5709

Re: The states we won't buy munis from, update

The top states by value of holdings for Vanguard intermediate term muni fund Rank State VWITX 1 New York 15.5% 2 California 11.5% 3 Texas 10.3% 4 Illinois 5.6% 5 Florida 5.3% 6 Pennsylvania 4.9% 7 Massachusetts 3.3% 8 Michigan 3.1% 9 Maryland 3.1% 10 New Jersey 3.1% The Vanguard list is much differe...
by afan
Sun Sep 18, 2016 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: How do you view money over and above your number?
Replies: 47
Views: 4365

Re: How do you view money over and above your number?

Your "number" needs an error bar. Put the excess in that. Exactly. To come up with an estimated dollar amount needed, you have to make a series of projections. Each could be wrong. Add up the sources of error and that gives you an estimate of the error in your estimate. Having more money ...
by afan
Sun Sep 18, 2016 8:01 am
Forum: Investing - Theory, News & General
Topic: The coming municipal bond crisis
Replies: 51
Views: 7080

Re: The coming municipal bond crisis

The risk to investors in munis arises more from cases where no one knows the real numbers. Large issuers got caught years ago with attempting to hide their true financial status. Now, depressing as it may be, there is enough information available for the market to price, say, state GO bonds. But the...
by afan
Sat Sep 17, 2016 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Physician employment and fair salary and raises
Replies: 58
Views: 5774

Re: Physician employment and fair salary and raises

Well, at the same time that docs are treated more like assembly line workers, the whole practice is changing. Docs used to have enormous latitude to decide how to manage a patient. Today, there are lots of guidelines about what to do and they are expected to follow them. Much of the challenge is dec...
by afan
Sat Sep 17, 2016 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Questions for Insurance Salesman on Whole Life Policy
Replies: 59
Views: 3757

Re: Questions for Insurance Salesman on Whole Life Policy

That "death benefit is tax free" comment has me worried that your salesman is giving standard insurance nonsense rather than good advice. Any assets the child held would pass free of income taxes at their death, not just life insurance. If they had tax deferred accounts their heirs might h...

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