Search found 538 matches

by lhl12
Mon Mar 20, 2017 2:52 pm
Forum: Investing - Theory, News & General
Topic: Harvard endowment beats S&P 500 by 2% a year over last 40 years
Replies: 50
Views: 5932

Re: Harvard endowment beats S&P 500 by 2% a year over last 40 years

Even if Harvard slightly lagged the S&P 500 over that period, that is still an excellent result. Harvard would never have set an asset allocation that was 100% S&P 500. A much more reasonable reference for that 40 year period would be a portfolio that was 70% equities and 30% fixed income, w...
by lhl12
Wed Mar 08, 2017 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Pension Options
Replies: 41
Views: 1934

Re: Pension Options

My wife was in a similar situation in her mid 20's. She had worked for a large company with a pension plan for a few years (just long enough to vest) then stopped working to have kids. She could have remained in the plan for the next 40 years and collected a small monthly pension for life at about a...
by lhl12
Fri Mar 03, 2017 11:07 am
Forum: Investing - Theory, News & General
Topic: Companies should have "dividend shares"
Replies: 10
Views: 676

Re: Companies should have "dividend shares"

It's an interesting idea, but there are a few practical issues that come to mind: 1) BIZ-D and BIZ-R won't necessarily trade at the same price. That might be fine, but you might end up paying premium to buy one share class or the other. Similarly, when the time comes to sell, you might only be able ...
by lhl12
Fri Feb 24, 2017 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Balance Defined Benefit Plan
Replies: 12
Views: 987

Re: Cash Balance Defined Benefit Plan

I agree that you should max it out. At your tax bracket, the savings are enormous, even if it returns very little. If interest rates rise significantly (which is always a possibility) you'll be earning some extra return. Also, even if you end up staying in until age 62, you and your wife will still ...
by lhl12
Fri Feb 24, 2017 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Ethical dilemma involving birthdays and wine..
Replies: 35
Views: 3574

Re: Ethical dilemma involving birthdays and wine..

I would send him a note saying that you were about to re-engage him for a new retirement plan, but when you received this year's bottle of wine you were offended by how inexpensive and poor quality it was and are going to a competitor instead. Next year you will either get nothing or you will get a ...
by lhl12
Wed Feb 15, 2017 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: charitable giving & transaction fees/costs
Replies: 4
Views: 183

Re: charitable giving & transaction fees/costs

I make virtually all charitable contributions via check, for the reason you describe. I do the same with political contributions as well. For all other expenditures, I use a credit card.
by lhl12
Mon Feb 13, 2017 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Investing a foundation's endowment
Replies: 15
Views: 1264

Re: Investing a foundation's endowment

You might also consider the TIFF Multi-Asset Fund, which is designed for entities like this. See:

https://www.tiff.org/MutualFunds/FundOverviews/maf.aspx
by lhl12
Sun Feb 12, 2017 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: Investing a foundation's endowment
Replies: 15
Views: 1264

Re: Investing a foundation's endowment

My base case would be 70/30 - 70% S&P 500 and 30% of whichever bond fund most closely approximates the Barclays Aggregate Bond Index. You could implement this passively at Vanguard and rebalancing annually or semiannually should be fine. The next thing I'd consider is substituting a TIPS fund fo...
by lhl12
Sun Feb 12, 2017 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Should I count value of homes in my Swensen AA?
Replies: 15
Views: 896

Re: Should I count value of homes in my Swensen AA?

As I see it, there are really three separate questions here that need to be considered separately. 1. Should your primary residence be considered part of your overall asset base and asset allocation? 2. Should your vacation residence be considered part of your overall asset base and asset allocation...
by lhl12
Thu Feb 09, 2017 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Advice for a soon-to-be MLB draftee
Replies: 68
Views: 9751

Re: Advice for a soon-to-be MLB draftee

Revisiting this thread..... The draftee, who is 21 years old, received his second installment of his signing bonus and now has about $260,000. Due to investing inertia he has it all sitting in a savings account at a local bank. Most day-to-day living expenses are covered by the team (he is off to s...
by lhl12
Wed Feb 08, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Please help with real estate question
Replies: 40
Views: 2410

Re: Please help with real estate question

Another issue is that if you own the house and they live in it "rent-free" then as far as the IRS is concerned you are making a gift to them of the fair market value of the rent each year. Let's imagine that fair market value of the rent for a house like that would be $3,000/month or $36,0...
by lhl12
Mon Feb 06, 2017 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 2225

Re: In-Laws Estate Planning - Wisdom Wanted

In most situations, a property for sale subject to a ROFR is worth less than the identical one without. How much less is hard to quantify, but many buyers won't want to make a firm offer when they're not sure they will get the property even if their price is accepted.
by lhl12
Mon Feb 06, 2017 10:48 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 2225

Re: In-Laws Estate Planning - Wisdom Wanted

Are your children genetic descendants of your spouse? (i.e. would they pass the "blood to blood" test?) Are they genetic descendants of yourself? If the answer to either question is "no", then that might be part of the problem.
by lhl12
Tue Jan 31, 2017 6:49 am
Forum: Personal Finance (Not Investing)
Topic: seeking advice - need to advise newly widowed mother in deep debt
Replies: 46
Views: 4152

Re: seeking advice - need to advise newly widowed mother in deep debt

If your parents used their home equity to fund college education for their children, it seems that part of the discussion should be how you and your brother can assist your mother financially. You have no legal obligation to do so and if you or your brother can't afford to do that, that's one thing...
by lhl12
Thu Jan 26, 2017 1:42 pm
Forum: Personal Consumer Issues
Topic: What is a good laptop to buy?
Replies: 90
Views: 7014

Re: What is a good laptop to buy?

Most of the other 17" laptops I have found are much bulkier and heavier than I would like. Since Dell and Apple are able to make a 15" so thin and light, I don't understand why no one else has done something comparable in a 17" format. I've heard it opined that a 15" laptop is t...
by lhl12
Thu Jan 26, 2017 10:59 am
Forum: Personal Consumer Issues
Topic: What is a good laptop to buy?
Replies: 90
Views: 7014

Re: What is a good laptop to buy?

I am also looking for a new laptop with many of the same constraints as the OP. It must be 17" and must run Windows 10 - no Macs, no Chromebooks. I am willing to pay more than the OP, however. I would also like it to be as thin and light as reasonably possible, with a modern CPU and modern grap...
by lhl12
Sat Jan 21, 2017 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: want to leave EJ but dont know what to do with what currently have
Replies: 21
Views: 1587

Re: want to leave EJ but dont know what to do with what currently have

Welcome! You have definitely come to the right place to figure all this out. There will be a lot of jargon ()like "ER") that will not be obvious to you at first. Don't worry about that at all. Ask questions about anything you don't understand or that is not clear. We tend to use a shorthan...
by lhl12
Fri Jan 20, 2017 8:38 am
Forum: Investing - Help with Personal Investments
Topic: How to factor pension into asset allocation?
Replies: 18
Views: 1550

Re: How to factor pension into asset allocation?

If you ignore the pension until it is fully vested, you will be following an absolute approach rather than a probabilistic approach. This might fit with your risk tolerance, but you should be aware of what you are doing. I believe the better way to handle this is to be mindful that you have this add...
by lhl12
Sat Jan 14, 2017 3:44 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Rewards Visa 2% cash back
Replies: 73
Views: 8994

Re: Fidelity Rewards Visa 2% cash back

I happily used the old version of the Fidelity card (from FIA, a division of B of A) for many years. I switched to the B of A Travel Rewards card a year or so ago because it offers a higher rebate percentage (2.625% vs Fidelity's 2.00%). I subsequently upgraded to the new version of the Fidelity car...
by lhl12
Wed Jan 11, 2017 4:36 am
Forum: Investing - Help with Personal Investments
Topic: [403(b) Fidelity or TIAA Cref allocation, and do I want one?]
Replies: 137
Views: 5433

Re: EJ not [costing me as much as] others?

To answer a specific question which I don't believe has been answered yet: Once a front end load has been paid, it is a sunk cost. It immediately reduces the value of your account at inception, but after that it has no impact. So, you can ignore any front end loads that you have already paid. The on...
by lhl12
Thu Jan 05, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: How to approach getting new wills, trusts, with a blended family
Replies: 51
Views: 2630

Re: How to approach getting new wills, trusts, with a blended family

Based on the current ages of you and your wife, what is the difference in your actuarial life expectancy? Said another way, if you and your wife both live to your exact actuarial ages, for how long will one of you outlive the other (and which one)? Not based on any tables, but rather on health and ...
by lhl12
Thu Jan 05, 2017 10:21 am
Forum: Personal Finance (Not Investing)
Topic: How to approach getting new wills, trusts, with a blended family
Replies: 51
Views: 2630

Re: How to approach getting new wills, trusts, with a blended family

Based on the current ages of you and your wife, what is the difference in your actuarial life expectancy? Said another way, if you and your wife both live to your exact actuarial ages, for how long will one of you outlive the other (and which one)?
by lhl12
Thu Jan 05, 2017 5:04 am
Forum: Personal Finance (Not Investing)
Topic: Bank of America Rewards Credit Cards - Worth it?
Replies: 18
Views: 2315

Re: Bank of America Rewards Credit Cards - Worth it?

Coato wrote:Sounds good if you get to apply points to independent charges.

Question on the cash back version: do you need to redeem monies into a b of a account or can they be applied to statement?

They can be applied to your statement.
by lhl12
Wed Jan 04, 2017 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America Rewards Credit Cards - Worth it?
Replies: 18
Views: 2315

Re: Bank of America Rewards Credit Cards - Worth it?

To be clear (if it wasn't already) the B of A Travel Rewards card doesn't require you to book through their travel portal to get charges eligible for the travel credit. They have a pretty broad definition of travel-eligible charges from third parties and I have never seen a charge that I thought sho...
by lhl12
Sat Dec 31, 2016 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Should I buy the next-door lot - and finance?
Replies: 14
Views: 1900

Re: Should I buy the next-door lot - and finance?

I was in a similar situation. I tried to buy the adjacent lot but got outbid by someone who wanted to develop it (and who eventually did, with something horrible next door that impacted my experience with my property significantly). I have always regretted that outcome. The real question is affordab...
by lhl12
Thu Dec 29, 2016 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Are there any benefits to achieving "great wealth"?
Replies: 106
Views: 8610

Re: Are there any benefits to achieving "great wealth"?

Give some to charity. If you are FIRE, then volunteer your time to a worthy cause. this, of course, is my humble opinion. Surprised this was the only such suggestion out of 15 posts. So, I will heartedly second it! If you've gotten to the point that all of your needs (and your family's) are covered...
by lhl12
Sun Dec 25, 2016 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Question about trusts & estate
Replies: 40
Views: 3561

Re: Question about trusts & estate

By the way, I would preface all these questions with "I don't understand what I am being asked to do here or why. Please explain how this trust works, how my father's estate plan is set up, and why this proposed change is important. Once I understand how and why things are set up the way they a...
by lhl12
Sun Dec 25, 2016 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Question about trusts & estate
Replies: 40
Views: 3561

Re: Question about trusts & estate

Here are some questions I would ask your mother's attorney: 1. If I do as you are advising me to do, (a) what benefits does my mother receive and (b) what benefits do I receive? 2. If I decline to do what you are advising me to do, (a) what costs does my mother incur and (b) what costs do I incur? 3...
by lhl12
Wed Dec 21, 2016 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: How do you track your finances?
Replies: 79
Views: 6520

Re: How do you track your finances?

I started with "Managing Your Money by Andrew Tobias", a quirky DOS-based program that I always had a soft spot for. When MYM eventually died because it never transitioned successfully to Windows, I switched to Microsoft Money. Again, a little quirky but did a great job and I was happy wit...
by lhl12
Sun Dec 18, 2016 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Best cash-back credit card for a small business?
Replies: 1
Views: 143

Best cash-back credit card for a small business?

What is the current Boglehead thinking for the best cash-back credit card for a small business (6-8 cardholders)? I currently use B of A Travel Rewards for personal charges and get 2.625% back (as a travel credit) on all purchases. What business card would be closest to this? I don't feel strongly a...
by lhl12
Tue Nov 29, 2016 4:06 am
Forum: Personal Consumer Issues
Topic: Bookkeeping/Accounting Book
Replies: 10
Views: 1641

Re: Bookkeeping/Accounting Book

"Essentials of Accounting" by Robert Anthony is a great programmed instruction book to learn the basic concepts of financial accounting. This book isn't specifically about bookkeeping - it's intended to teach someone with no background about how financial statements work. After working thr...
by lhl12
Sun Nov 27, 2016 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Wealthy aunt is willing to allow me borrow $$ for medical school. How to best approach this?
Replies: 70
Views: 7925

Re: Wealthy aunt is willing to allow me borrow $$ for medical school. How to best approach this?

You would presumably qualify for a third party loan for medical school in the full amount required. This loan would bear interest at commercial rates. Your aunt is willing to lend you the same amount of money at an interest rate of zero, but with the expectation that you will repay her principal in ...
by lhl12
Tue Nov 15, 2016 5:03 pm
Forum: Investing - Theory, News & General
Topic: Would the fed have to print money to pay our debts if we couldn't borrow anymore?
Replies: 14
Views: 1200

Re: Would the fed have to print money to pay our debts if we couldn't borrow anymore?

People's willingness to lend our government money is first and foremost a function of the rate of interest paid. Your hypothetical is not very realistic. Much more likely is that the cumulative weight of government borrowing over time would drive interest rates steadily higher, as the perceived det...
by lhl12
Tue Nov 15, 2016 4:27 pm
Forum: Investing - Theory, News & General
Topic: Would the fed have to print money to pay our debts if we couldn't borrow anymore?
Replies: 14
Views: 1200

Re: Would the fed have to print money to pay our debts if we couldn't borrow anymore?

People's willingness to lend our government money is first and foremost a function of the rate of interest paid. Your hypothetical is not very realistic. Much more likely is that the cumulative weight of government borrowing over time would drive interest rates steadily higher, as the perceived dete...
by lhl12
Mon Oct 31, 2016 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for My Father -Inheritance Plan Options
Replies: 17
Views: 1770

Re: Advice for My Father -Inheritance Plan Options

Your father (and his wife) are both relatively young and one or both could live for several decades. Most importantly, whatever plan your father (and his estate planning attorney) implement will almost certainly require revision along the way. It is essential that after the plan gets created and imp...
by lhl12
Thu Oct 27, 2016 9:32 am
Forum: Personal Consumer Issues
Topic: Mr. Money Mustache donates $100k to charity, writes about effective altruism
Replies: 100
Views: 11078

Re: Mr. Money Mustache donates $100k to charity, writes about effective altruism

Are there any charitable organizations that Bogleheads are familiar with that focus on financial literacy? I know that the Bogleheads foundation itself does that but I was wondering if there are any others that go out into schools or sponsor programs to help educate people in basic financial literacy.
by lhl12
Mon Aug 29, 2016 5:06 am
Forum: Personal Finance (Not Investing)
Topic: Optimal timing after death to liquidate estate?
Replies: 21
Views: 1912

Re: Optimal timing after death to liquidate estate?

His mother's will specifies that her assets are to be divided equally (in trust) among her four children. If the trust exists now, and the executor is already a co-trustee, then an immediate sale is possible. If the trust is created by her death, or it exists but the executor is not yet a trustee, ...
by lhl12
Sat Aug 27, 2016 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Optimal timing after death to liquidate estate?
Replies: 21
Views: 1912

Re: Optimal timing after death to liquidate estate?

It is usually considered improper for the personal representative or trustee to place the beneficiaries at risk by speculating on the market. He could be held personally liable for losses incurred without consent of the beneficiaries. I have always followed the practice of immediately liquidating t...
by lhl12
Sat Aug 27, 2016 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Optimal timing after death to liquidate estate?
Replies: 21
Views: 1912

Optimal timing after death to liquidate estate?

The very elderly mother of a friend (let's call him Fred) is terminally ill, with her passing expected soon. Fred is one of four adult children whose father is already deceased. Fred is co-executor of his mother's estate (with one of his siblings). His mother's will specifies that her assets are to ...
by lhl12
Fri Aug 19, 2016 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Could I use a Donor Advised Fund as an alternative retirement vehicle?
Replies: 46
Views: 3638

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

I started a 501c3 non profit organization several years ago and have been putting a lot of my free time as well as a substantial amount of funds into the organization's activities in community health work. As my income from a separate job goes up into the 200-400k per year range I have thought abou...
by lhl12
Fri Aug 19, 2016 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Could I use a Donor Advised Fund as an alternative retirement vehicle?
Replies: 46
Views: 3638

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

Another issue you would face is that your 501c3 is chartered as a corporation under some state's law. It has presumably received a Federal tax exemption from the IRS, making donations to it tax-deductible (and therefore eligible from the DAF), but it remains subject to oversight and regulation from ...
by lhl12
Thu Aug 18, 2016 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Gifting whole estate in life
Replies: 77
Views: 5099

Re: Gifting whole estate in life

This is a terrible, terrible idea, for all the reasons listed above and more besides. There are lots of strong reasons not to do this and no good reasons to do it that can't be gotten around via simple estate planning. The right configuration is a Revocable Trust during your dad's lifetime, into whi...
by lhl12
Thu Aug 11, 2016 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-nup questions
Replies: 35
Views: 4653

Re: Pre-nup questions

Let's assume these two people are getting married because they want to be together for a long time. Having their home be only 'her' house is fraught with divisive emotional and financial mine fields - they want it to be theirs. Having him buy in and then foot half the bill for upkeep, expenses and ...
by lhl12
Thu Aug 11, 2016 11:12 am
Forum: Personal Consumer Issues
Topic: Recommend some nice, comfy mens work socks
Replies: 16
Views: 916

Re: Recommend some nice, comfy mens work socks

Is your desk job at a company that owns a chain of Tex-Mex restaurants? If so:

http://www.tonsofsocks.com/tapatio.html ... AhIY8P8HAQ
by lhl12
Thu Aug 11, 2016 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Pre-nup questions
Replies: 35
Views: 4653

Re: Pre-nup questions

b. How should she deal with her house (both legally and especially economically) in light of the fact that the new husband will be moving in with her? I thought he should buy half from her and have it become a joint asset, but would appreciate others' views. Why complicate things? Since she owns th...
by lhl12
Thu Aug 11, 2016 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Pre-nup questions
Replies: 35
Views: 4653

Re: Pre-nup questions

A few points of clarification: 1. She most definitely will have a pre-nup. That is not a question. 2. It is definitely her intent to maintain her assets separately and ultimately to have whatever's left go to her kids. Also not a question. 3. Given 1 and 2 above, the real questions are: a. Is an est...
by lhl12
Thu Aug 11, 2016 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Pre-nup questions
Replies: 35
Views: 4653

Pre-nup questions

A female friend (age 53) is getting remarried and has asked for my advice regarding her post-remarriage financial arrangements and pre-nup. State of residence is CT. She has a net worth of about $4 million -- $3.2 million at Vanguard (about $3 million taxable and $0.2 million in an IRA) and owns her...
by lhl12
Tue Aug 09, 2016 12:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - why don't I 'feel' good about them?
Replies: 36
Views: 4003

Re: Vanguard - why don't I 'feel' good about them?

At both firms I have accounts of my own and accounts of various family members whom I have referred. I definitely prefer Fidelity and if I were starting from scratch I would have everything at Fidelity. Having said that, Vanguard is certainly workable (especially since I know their website and know ...
by lhl12
Sat Jul 30, 2016 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Quickbooks Enterprise for sole proprietor - overkill?
Replies: 5
Views: 608

Re: Quickbooks Enterprise for sole proprietor - overkill?

My situation is similar, though slightly more complex (three individuals in different locations accessing the QBE file, two LLC's. I think QBE is fantastic. I started with QuickBooks Online but it couldn't handle everything I wanted to do and since I made the switch several years ago have never look...

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