Search found 1575 matches

by afan
Mon May 02, 2016 1:49 pm
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 89
Views: 8821

Re: "Save $52,000 on Financial Advice" Forbes

Look for someone who is hourly fee only. No investment management offered, no products sold. Just advice at an hourly rate. Lot of them offer that, but then slip in the AUM. Would rather have someone who has been vouched for by a fellow boglehead. Well, if they slip in AUM then they are not solely ...
by afan
Mon May 02, 2016 1:47 pm
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 89
Views: 8821

Re: "Save $52,000 on Financial Advice" Forbes

The investor returns depend on the pattern of contributions and withdrawals. Most people invest as income comes in, rather than all at once, and most people in withdrawal phase take money out periodically, rather than all at once. Comparing their returns to a model that makes a single deposit at the...
by afan
Mon May 02, 2016 12:45 pm
Forum: Investing - Theory, News & General
Topic: Buffett goes after fees pushes index funds (again)
Replies: 6
Views: 631

Re: Buffett goes after fees pushes index funds (again)

I cannot get so worked up over either issue. I am sure he knows there are other index funds. I assume he mentions S&P 500 because that will be most familiar to viewers. That avoids having to explain that there are other index funds, explain what a TSM fund would be and hope people followed that....
by afan
Mon May 02, 2016 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

Celia, Thank you again. This is so helpful! I had found those webpages. The problem is that there are a huge number of plans. The advice to focus on Medigap plus Drugs is helpful. I did not quite understand the limitations on enrollment in Advantage plans later. Those plans accept people who sign up...
by afan
Mon May 02, 2016 9:56 am
Forum: Investing - Theory, News & General
Topic: Classic Bernstein — Asset Allocation and Time Horizon
Replies: 43
Views: 3908

Re: Classic Bernstein — Asset Allocation and Time Horizon

I have not read Bernstein's post, so these comments are only about the two graphs pulled from his longer report.Those graphs plot return vs volatility, not vs percent stocks, or composition of the stock portfolios. So all one can make of the graphs is that the short term showed little correlation be...
by afan
Sun May 01, 2016 7:40 pm
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 89
Views: 8821

Re: "Save $52,000 on Financial Advice" Forbes

Look for someone who is hourly fee only. No investment mangement offered, no products sold. Just advice at an hourly rate.
by afan
Sun May 01, 2016 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance payout - instructions for surviving spouse
Replies: 7
Views: 523

Re: Life insurance payout - instructions for surviving spouse

If you really think your spouse is incapable of figuring out these things, you probably are better off forming a relationship with a financial advisor, hourly fee type, who can chart out a plan and most importantly update it should you pass early. If it were me, I would be very concerned that my spo...
by afan
Sun May 01, 2016 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

Celia, Thank you for very helpful advice. A lot to think about. Some of the issues I am hesitant to discuss, even anonymously. Suffice it to say that I consulted an attorney who understood the situation and recommended getting mom to gift her share of the son's house. I am trying to get him signed u...
by afan
Sun May 01, 2016 1:53 pm
Forum: Personal Consumer Issues
Topic: How to Bogleheads TRAVEL?
Replies: 44
Views: 2798

Re: How to Bogleheads TRAVEL?

When I travel for business, most of those choices are dictated by the place I am going and who is sponsoring the trip. Travel that is not for business is strictly limited. I go only short distances from home and I drive, or walk. If it is far enough away that I need to take an airplane or book a hot...
by afan
Sun May 01, 2016 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

bsteiner, Thanks. But how easily could it have gone the other way? Testator left an estate consisting soley of BRK, trustee diversifies and misses out on one of the great investing successes in history? Diversification is usually better, but not always. The trustee needs a safe harbor of saying that...
by afan
Sun May 01, 2016 10:54 am
Forum: Personal Finance (Not Investing)
Topic: tax shelter for passive income?
Replies: 6
Views: 722

Re: tax shelter for passive income?

I am sure you know that there were glory days of tax sheters. Investments whose only purpose was to generate paper losses for tax purposes. Some of them, to the dismay of the investors, generated real losses as well. Reasonable to seek to minimize your taxes. But unless it is a religious thing with ...
by afan
Sun May 01, 2016 10:48 am
Forum: Investing - Theory, News & General
Topic: Reasonable Firecalc Assumptions and Results?
Replies: 11
Views: 885

Re: Reasonable Firecalc Assumptions and Results?

[quote="remomnyc"]I actually think having lots of money left over at death is a bad thing. To me, it means I died young or worked too long. [/quote] Not possible to work too long. As long as you work, you remain in the accumulation phase. Your savings do not have to last as long because yo...
by afan
Sun May 01, 2016 10:33 am
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 89
Views: 8821

Re: "Save $52,000 on Financial Advice" Forbes

Regarding the fee only confusion, it is not a particularly useful distinction. Some of the complaints arise because people assume fee only means free of conflicts of interest. Some even assume it means fairly priced or good value. All it does is describe one method of compensation. And even then it ...
by afan
Sun May 01, 2016 9:05 am
Forum: Investing - Theory, News & General
Topic: Reasonable Firecalc Assumptions and Results?
Replies: 11
Views: 885

Re: Reasonable Firecalc Assumptions and Results?

Agree. The problem with planning for the next 60 years is that no one knows what the economy and markets will do. No one knows what SS will look like, no one knows what inflation will be, no one knows what health care will do to your longevity. It is a tool for getting a handle on how you plan your ...
by afan
Sun May 01, 2016 8:51 am
Forum: Investing - Theory, News & General
Topic: Regret of selling winning stocks early
Replies: 35
Views: 3318

Re: Regret of selling winning stocks early

I have a friend whose company stock is up about 20% over the past year, but he is bummed because it is down about 3% in the last month.

I tell him he is driving himself crazy.

Take a look in 40 years and meanwhile, don't worry about it.
by afan
Sun May 01, 2016 8:24 am
Forum: Investing - Theory, News & General
Topic: Vanguard Limited-Term Tax-Exempt Fund > Ally Bank?
Replies: 12
Views: 1102

Re: Vanguard Limited-Term Tax-Exempt Fund > Ally Bank?

In terms of safety, that is probably fine. I have a small allocation for exactly that reason. But remember that the share price does vary, just not by much. So if you redeem shares, you create a taxable event and you need to track your cost basis. The real hassle is whether you want to deal with all...
by afan
Sun May 01, 2016 8:17 am
Forum: Investing - Theory, News & General
Topic: Jonathan Clements: higher % stocks -> higher % of stocks international
Replies: 14
Views: 1440

Re: Jonathan Clements: higher % stocks -> higher % of stocks international

If you go with the volatility reduction approach, the challenge is what correlation coefficient to assume going forward? The correlation of US stocks with foreign used to be low, but has been rising. It is now high enough that there is not much volatility reduction to be had from including internati...
by afan
Sat Apr 30, 2016 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Help With Disability Insurance for my Wife and I
Replies: 2
Views: 295

Re: Help With Disability Insurance for my Wife and I

I don't know whether it is a good price. Your insurance agent should be able to give you the complete language from the policy describing the own occ feature. But have you spoken with the people at your practice to find out the terms of their disability coverage? Many practices have quite good insur...
by afan
Fri Apr 29, 2016 11:04 am
Forum: Personal Finance (Not Investing)
Topic: What to tell your child about Bill for tax preparation
Replies: 52
Views: 4548

Re: What to tell your child about Bill for tax preparation

daveatca wrote: Jack FFR1846 wrote: Taxes are overly complicated. I have 3 engineering degrees and cannot figure them out. I filled out my daughter's 1040EZ one year when she was in college. IRS said: you're an idiot and here is her refund. But, I only have 2 engine degrees and a MBA. The problem i...
by afan
Fri Apr 29, 2016 10:58 am
Forum: Personal Finance (Not Investing)
Topic: 29 yo and married: Do I need a will and/or trust?
Replies: 10
Views: 866

Re: 29 yo and married: Do I need a will and/or trust?

Important that you powers of attorney are DURABLE powers- DPOA. Otherwise the POA expires should you become incompetent. Were it not for your business, which you apparently own and your rental property, I would say this is simple, no need for a trust or any other complications. Just will, DPOA, Heal...
by afan
Thu Apr 28, 2016 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

I will take another look at Fidelity. The pricing model is completely different than what they had when I looked a while ago. Back then, they were clear that their motivation was to drive money into their high expense ratio active funds and that this was nonnegotiable. If they have given up on that,...
by afan
Thu Apr 28, 2016 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

I am grateful for the continued thoughts. This has been on my mind a lot. On investments: Although I am as hard core a 3-fund fan as any boglehead, I remain cautious about trying to dictate investment practices to my trustees long after I have been released from this veil of tears. Try to imagine wh...
by afan
Thu Apr 28, 2016 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: What to tell your child about Bill for tax preparation
Replies: 52
Views: 4548

Re: What to tell your child about Bill for tax preparation

Agree with all of that. The vast majority of people in the country could very well do their own taxes, by hand and even more with retail tax software. But they don't want to. They want someone to deal with it, get it right and pay a figure to free up their time. We have used an enrolled agent for a ...
by afan
Wed Apr 27, 2016 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: End of life situation and handling IRA
Replies: 23
Views: 1780

Re: End of life situation and handling IRA

His wife will have rights to retirement funds, unless she has agreed to relinquish them. I don't know the details, but I don't think a married person can simply designate someone else as the sole beneficiary of an IRA. Hopefully one of the lawyers will chime in. If your dad is taking required distri...
by afan
Wed Apr 27, 2016 11:08 am
Forum: Investing - Theory, News & General
Topic: Schwab ends load fund access
Replies: 8
Views: 771

Re: Schwab ends load fund access

Obviously this is a good thing. But I don't get the link to the DOL rule. That applies only to retirement accounts, doesn't it? This sounds like Schwab is dropping load funds altogether.
by afan
Wed Apr 27, 2016 5:38 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau on life-cycle finance retirement planning
Replies: 15
Views: 1884

Re: Wade Pfau on life-cycle finance retirement planning

the pot is basically all you have got and you have to fund a retirement for nearly as long as you have worked ... Many people can avoid this situation by working as long as they can. The shorter the retirement the less dependent they are on their retirement funds. Then the larger the asset pool at ...
by afan
Wed Apr 27, 2016 5:32 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau on life-cycle finance retirement planning
Replies: 15
Views: 1884

Re: Wade Pfau on life-cycle finance retirement planning

Many seniors are planning not only for their retirement, but also to leave money to their heirs, to charity, or both. For them the investment horizon is effectively infinite. Maximizing long term risk adjusted return is exactly what they are seeking. As long as they are safe at maximum plausible dra...
by afan
Tue Apr 26, 2016 5:14 pm
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 89
Views: 8821

Re: "Save $52,000 on Financial Advice" Forbes

As to the lawyer comment. I take offense. None intended. But consider whether the laws, regulations and interpretations could possibly be as complicated as they are without thousands of attorneys finding ever new ways to challenge them. One could imagine what simple inheritance or tax laws might lo...
by afan
Tue Apr 26, 2016 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4860

Re: Irrevocable Trust - Am I being Bamboozled?

Or the more cynical among us might suspect one could charge more for a trust than simply telling him to have his mother give him her money. Maybe they realized he would not take that advice, so they needed some smoke and mirrors to get him to go along.
by afan
Tue Apr 26, 2016 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

Unfortunately, it seems that most trust templates allow a trustee to invest the trust assets in any manner that such sleazy salesman may recommend. I've argued for trust language that handcuffs a trustee to BH principles, but haven't developed much of a following here on the forum. :? The concern i...
by afan
Tue Apr 26, 2016 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

Depressing that the advisor is not in jail.
by afan
Tue Apr 26, 2016 9:39 am
Forum: Investing - Theory, News & General
Topic: Single or multiple value metric sorts
Replies: 15
Views: 798

Re: Single or multiple value metric sorts

Wait. We are saying "P/B is a great value measure" But P/B did terribly over a long term. "OK, Value is still great. We just have to tinker with our value definitions until we come up with one that works" There are plenty of studies saying that the various value measures produce ...
by afan
Tue Apr 26, 2016 8:47 am
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 89
Views: 8821

Re: "Save $52,000 on Financial Advice" Forbes

Still hoping to get examples of what else bogleheads might be missing. If there are ways to further simplify, I would love to know about them. Anyone have ideas of what Allan Roth is referring to? I can certainly see room in estate planning, although not necessarily simplification. Lawyers on both s...
by afan
Tue Apr 26, 2016 5:20 am
Forum: Personal Finance (Not Investing)
Topic: Just pay or get Tax Lawyer
Replies: 13
Views: 1242

Re: Just pay or get Tax Lawyer

I have had them throw away W-2's that were stapled to the return, claim they were never submitted, then try to Bill me for the entire amount withheld. Sent them a photocopy of the return, circled the staples and noted that they got the money and the W-2's. Only took them 6 months to stop dunning me....
by afan
Tue Apr 26, 2016 5:14 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4860

Re: Irrevocable Trust - Am I being Bamboozled?

Back to the original deal. If the plan was for the OP to have his mother give away her assets to qualify for VA benefits, what was the need for the trust? Mom could simply give the money to her kid and be done with it. Is there some legitimate reason to put the gift in trust?
by afan
Mon Apr 25, 2016 6:01 pm
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 89
Views: 8821

Re: "Save $52,000 on Financial Advice" Forbes

Fascinating. Can you share some examples of low hanging fruit?
by afan
Mon Apr 25, 2016 3:51 pm
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 89
Views: 8821

Re: "Save $52,000 on Financial Advice" Forbes

Someone paying a 1% assets under management fee on a million dollar portfolio is being charged something around $10,000 per hour, maybe more.

I am not sure Warren Buffet's advice is worth that much.

Oh, wait, his advice is free!
by afan
Mon Apr 25, 2016 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

Rodc,

That is an interesting idea. Could not run out of cash, income definitely not available until the annuity pays it out, predictable cash flow. I would need to figure out how much a home might cost and compare to what it would cost to get an annuity that pays the same amount.

Thanks
by afan
Mon Apr 25, 2016 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Have any of you overextended on housing? What were your experiences?
Replies: 42
Views: 3636

Re: Have any of you overextended on housing? What were your experiences?

People in expensive areas may have to stretch the usual suggestions for housing budgets. Same in NYC, SF, etc. But being as conservative as you can will pay off long term. As you have noticed, real estate goes up AND DOWN and being stuck underwater is not a fun place to be. Even worse if you cannot ...
by afan
Mon Apr 25, 2016 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Want a new vehicle, but can't "justify" spending?
Replies: 36
Views: 3442

Re: Want a new vehicle, but can't "justify" spending?

I can't help you. There are few things that give me more pleasure than driving a car that was paid for long ago, whose steep depreciation is over, that is unlikely to attract thieves, and that runs well. It is like it is free. For me, 13 years is "almost broken in". I drove one like that f...
by afan
Mon Apr 25, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4860

Re: Irrevocable Trust - Am I being Bamboozled?

I suppose the next question that I have should be a separate thread in a different section of Bogleheads - How to invest the money she has left (safely) as it is drawn down. You will probably get more responses if you do a new thread in personal investments. You will want to figure out how long you...
by afan
Mon Apr 25, 2016 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4860

Re: Irrevocable Trust - Am I being Bamboozled?

To be fair, for an experienced estate attorney, I suspect that common situations are common. "Married, two kids, two cars, one house, mortgage, retirement accounts, life insurance- these people for guardians, these inherit if parents and kids are all gone... We call this a number 12" As yo...
by afan
Mon Apr 25, 2016 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

Bsteiner, Gill, Thanks for the feedback. Any more general suggestions on how trustees handle such a situation. bsteiner, Disappointed to hear that. Of course, the language says what it says, too late to change it. Is there anything I can do to minimize the risk to the assets? I had assumed the "...
by afan
Mon Apr 25, 2016 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

Trapper, Thanks for the feedback. It seems I have more expectations of the duties of a trustee of such a trust. It is not my job to ensure she... pays her bills on time, or provide for a nursing home if she needs one. I am afraid I do think making sure he is not destitute at 75 is precisely why I wa...
by afan
Mon Apr 25, 2016 1:04 pm
Forum: Investing - Theory, News & General
Topic: "8 Reasons You Should Be Your Own Financial Advisor"
Replies: 5
Views: 1511

Re: "8 Reasons You Should Be Your Own Financial Advisor"

Great points all, but particularly about the availability of hourly investment advice. On a portfolio of $1M a 1% fee is $10,000. How many clients use $10,000 worth of advice in one year? At $200/hour, that is 50 hours of advice! What in the world would an advisor be doing for that fee? And to do it...
by afan
Mon Apr 25, 2016 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with money (first world problem)
Replies: 15
Views: 2680

Re: What to do with money (first world problem)

If you have a high interest rate, the refinance your mortgage. If it is low, you could just make the scheduled payments or consider accelerating them to save interest over the life of the loan. For sure you should maximize your tax deferred retirement contributions. 6 years if tution per child shoul...
by afan
Mon Apr 25, 2016 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

Prudent, Thanks for the feedback. The trust does have a spendthrift clause. He has no children and is not likely to. The trust does authorize payments on similar terms to or for benefit of any children if he had them. Your last suggestion gets to the heart of my uncertain duty as trustee. Paying out...
by afan
Mon Apr 25, 2016 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Annual Financial Plan Provision for Flagship Customers Discontinued?
Replies: 22
Views: 2192

Re: Annual Financial Plan Provision for Flagship Customers Discontinued?

Has anyone received a financial plan from Vanguard and from some other planner at around the same time? How did they compare?
by afan
Mon Apr 25, 2016 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4860

Re: Irrevocable Trust - Am I being Bamboozled?

At least some of the strategy appears to be not only legal, but very familiar to the VA. Hence the draft proposal to stop it. But apparently it has not been stopped yet and veteran's groups are opposed to changing the rule. If I understand this all correctly, and I am not sure I do, there are elemen...
by afan
Mon Apr 25, 2016 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 42
Views: 1839

Re: Advice for new trustee, distributions

"...may from time to time may pay to or on behalf of [beneficiary] such amounts of income and/or principle as the trustee in the trustee's sole, absolute and uncontrolled discretion deems necessary or advisable for [beneficiary's] health, support, maintenance or care" I assume this is an e...

Go to advanced search