Search found 76 matches

by Counterpoint
Mon Apr 20, 2020 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

Indeed there are several reasons, including abuse of 529 plans, why the IRS wanted to issue a new NPRM (notice of proposed rulemaking). These reasons (and examples of potential abuse) were mentioned in the 2008 Advance NPRM which sought input on the new NPRM to be subsequently issued - but which was...
by Counterpoint
Thu Apr 16, 2020 7:49 am
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

Thank you, Leesbro63 - it's interesting to read your summary on the unicorn status. I would point out that the view that (as of the current time) the likely possibility is that a beneficiary transfer is a deemed gift from the current beneficiary, is not MY view. It is the view of the tax lawyer I've...
by Counterpoint
Wed Apr 15, 2020 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

So using my simplistic language here, perhaps someone can bring me up to speed on the issue and the current case law and thinking. Thank you! I'm sorry but I got lost in the posts from above and am trying to simplify this so I can understand not only what the issue is, but what and who think the an...
by Counterpoint
Wed Apr 15, 2020 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

I mean forget about superfunding and just do 15k a year. Then you really don't need to figure out who the official gifter is. You have ~18 years to finish up after all. The benefits of superfunding with an 18 year time horizon far outweigh the hassle of having to deal with the gifting issue (which ...
by Counterpoint
Tue Apr 14, 2020 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

Subsequent to your last post, I found a well-documented article by a tax lawyer that addresses the exact issue that we have been discussing. The article is in the Oregon State Bar’s Newsletter (Estate Planning and Administration Section) from Sep 2015. (The author is Ginger Skinner, who has a Maste...
by Counterpoint
Tue Apr 14, 2020 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

This is the second of two successive posts in response to Spirit Rider's comments. [*]Columbia Management Group: Has an epic fail of their supposed reference supporting there position. Nowhere does 26 U.S. Code § 529(c)(5)(B) identify who the gift tax liability applies to. Which why this was address...
by Counterpoint
Tue Apr 14, 2020 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

Thank you, as always, Spirit Rider, for taking the time to respond, and for the clarity of your comments. My apologies that this is a lengthy response, even after breaking it down into 2 posts. The first post brings in new information; the second post is just specific replies to some of your points....
by Counterpoint
Sat Apr 11, 2020 10:37 am
Forum: Personal Finance (Not Investing)
Topic: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?
Replies: 10
Views: 792

Re: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?

An addendum: The mechanics discussed above are predicated on the owner being considered the donor for gift tax purposes when there is a 529 beneficiary transfer. I subsequently discovered that all the financial/legal firms I've found who have opined on this believe that the original beneficiary is a...
by Counterpoint
Fri Apr 10, 2020 11:07 pm
Forum: Personal Investments
Topic: Seasoned Bogleheads; What 3 Things Have You Done Financially Related to the Economy Recently
Replies: 112
Views: 11121

Re: Seasoned Bogleheads; What 3 Things Have You Done Financially Related to the Economy Recently

Set up a HELOC on our house, as backup in case family members have unexpected financial difficulty. Stayed with our AA as always (essentially a 3-index fund all-equities portfolio of US/Intl Dev Mkt/EM, so not much rebalancing needed). Admit to a little bit of market timing in March by accelerating ...
by Counterpoint
Fri Apr 10, 2020 6:22 am
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

if you tried to do 45k from the three accounts, it would look very much like a step transaction violation That's an interesting point, and one that I have not seen mentioned previously. Perhaps because the practical downside, even if there is a violation, is minor - needing to file a gift tax retur...
by Counterpoint
Wed Apr 08, 2020 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

I always figured you could just open a new 529 and do 15k transfers each year when the time comes (ie after a grandchild is born) and not have to worry about it. Absolutely. But you need to know who the gift is from - the owner or Beneficiary 1? For instance: My superfunding so far was $70K, all wi...
by Counterpoint
Wed Apr 08, 2020 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

Re: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

This is a follow-up to my previous post, and provides the relevant language and links to the articles/posts from the 7 firms I found who addressed this topic: Wealthfront (robo advisor) - updated 2020: “The former beneficiary will be treated as having made a taxable gift to the new beneficiary.” Fro...
by Counterpoint
Wed Apr 08, 2020 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor
Replies: 28
Views: 1526

529 Beneficiary Change - What Financial/Legal Firms say about who is the Donor

When there is a 529 beneficiary transfer (say from beneficiary 1 to beneficiary 2), is it (1) a gift from the owner to the new beneficiary, or (2) a gift from beneficiary 1 to beneficiary 2? This question is relevant when there are gift tax implications because beneficiary 2 is a lower generation th...
by Counterpoint
Sun Apr 05, 2020 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?
Replies: 10
Views: 792

Re: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?

Yes, your wife can make a separate contribution to a 529 account owned by you. Don't trust me on this with it being so late at night, but I believe a Form 709 might be required to report gift-splitting if made from a joint account. Thank you, Spirit Rider. I spent some quality time curled up with t...
by Counterpoint
Thu Apr 02, 2020 11:28 pm
Forum: Personal Finance (Not Investing)
Topic: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?
Replies: 10
Views: 792

Re: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?

It might seem strange, but by default a change of ownership is not considered a newly completed gift. Interesting - good to know! Always delighted to find a helpful surprise from the IRS. One other question: We would look to make contributions of another 15K or so directly to our grandchild’s accou...
by Counterpoint
Wed Apr 01, 2020 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?
Replies: 10
Views: 792

Re: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?

Thanks very much for all the replies. And SpiritRider, thank you for your contributions to the BH community at large - I have read many of your posts, and they are always a model of clarity and usefulness. And TMI your post is definitely not! You only need to track amounts applied against the lifeti...
by Counterpoint
Tue Mar 31, 2020 10:08 am
Forum: Personal Finance (Not Investing)
Topic: How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?
Replies: 10
Views: 792

How to Transfer 529 Beneficiary to Grandchild without needing to file Gift Tax Return?

We accelerated 70K of planned 529 contributions recently for our grandchild prior to their birth, given the rapid decline in the market. My question is how to later move these amounts to an account with my grandchild as beneficiary, without triggering a need to file gift tax returns. (I recognize th...
by Counterpoint
Sat Mar 28, 2020 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion planning in a bear market
Replies: 63
Views: 4334

Re: Roth conversion planning in a bear market

The question is: If we exceed a 25% market drop, should we be prepared to execute additional conversions at the 32% tax bracket since the conversion cost per share is back to what it was on January 2? I’ve been meaning to respond to your original question, Firechief, but life sort of got in the way...
by Counterpoint
Mon Mar 23, 2020 9:23 am
Forum: Personal Investments
Topic: Checking Economics of TLH
Replies: 2
Views: 209

Re: Checking Economics of TLH

Looks pretty good. Some things to consider: - will you have capital gain distributions during the next 10 years that will also be negated by (and use up) your capital loss carryover? - Is your income high enough that all your capital gains are subject to the NIIT, or do you straddle the NIIT income...
by Counterpoint
Sun Mar 22, 2020 6:55 pm
Forum: Personal Investments
Topic: Investing a Lump Sum in this Market
Replies: 7
Views: 1083

Re: Investing a Lump Sum in this Market

I should have clarified that additional Lump Sum at these levels would have been my #1 choice.
The other options I mentioned were suggestions if you did not want to lump sum for some portion of it.
by Counterpoint
Sun Mar 22, 2020 6:37 pm
Forum: Personal Investments
Topic: Investing a Lump Sum in this Market
Replies: 7
Views: 1083

Re: Investing a Lump Sum in this Market

If I were you, I would look for “good enough” rather than trying to hit the home run. You’ve already done extremely well (aka been very lucky) in buying a third of your lump sum in a 25-30% down market. I personally would definitely DCA for a chunk of the remainder, perhaps over the next 4-6 months....
by Counterpoint
Sun Mar 22, 2020 3:01 pm
Forum: Personal Investments
Topic: Checking Economics of TLH
Replies: 2
Views: 209

Checking Economics of TLH

I’d like to check my understanding of the economics of tax loss harvesting for our situation. Assumptions - Assume for this analysis that we (spouse and I are MFJ) have $30,000 of loss to TLH, so we can deduct $3000 pa for the next 10 years. - Our current ordinary income tax (federal + state) MTR is...
by Counterpoint
Wed Dec 11, 2019 11:23 pm
Forum: Personal Investments
Topic: Too much tax deferred?
Replies: 28
Views: 3999

Re: Too much tax deferred?

We recently had a real estate investment turn around a lot quicker than expected, allowing us to start maxing out my wife's 457b. We're now maxing out my TSP and her 457b as well as two Roth IRAs. Here is the question: Considering we're already deferring $38,000 per year ($39,000 next year), and ar...
by Counterpoint
Sun Dec 08, 2019 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does this HSA long term strategy make sense? (And relative unimportance of keeping receipts before age 65)
Replies: 6
Views: 1032

Re: Does this HSA long term strategy make sense? (And relative unimportance of keeping receipts before age 65)

Bottom line, they should max it out and invest it for now. If at some point in the distant future they are worried that they will never spend it, they can reconsider. Between long term care insurance and Medicare premiums I doubt that will ever be the case. Even in that case, they can use it as add...
by Counterpoint
Sun Dec 08, 2019 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Does this HSA long term strategy make sense? (And relative unimportance of keeping receipts before age 65)
Replies: 6
Views: 1032

Re: Does this HSA long term strategy make sense? (And relative unimportance of keeping receipts before age 65)

Thanks for all the comments. If they are saving that well, I doubt they will work and stash in the HSA till 65. Good point. Their vague target is to try and retire at 60 - or at least go part time. But even if they stop contributing to their HSAs at 60, it does not affect the projected HSA balance m...
by Counterpoint
Sat Dec 07, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Does this HSA long term strategy make sense? (And relative unimportance of keeping receipts before age 65)
Replies: 6
Views: 1032

Does this HSA long term strategy make sense? (And relative unimportance of keeping receipts before age 65)

This post is to request inputs on whether the long-term HSA planning parameters outlined below make sense, and on what I may be missing. I’m helping some younger family members with their financial planning. In particular, there is a couple I’m helping who have little bandwidth for detailed financia...
by Counterpoint
Fri Mar 01, 2019 10:04 pm
Forum: Investing - Theory, News & General
Topic: Current expected return of stocks
Replies: 71
Views: 5160

Re: Current expected return of stocks

One piece for the OP to check out: The Credit Suisse 2019 Global Investment Returns Yearbook, published annually together with Professors Dimson, Marsh and Staunton. It provides a good historical perspective on the equity premium in various countries/regions, including the US, over the 1900-2018 per...
by Counterpoint
Thu Jan 24, 2019 11:23 pm
Forum: Investing - Theory, News & General
Topic: Tributes to Jack Bogle
Replies: 206
Views: 29206

Re: Tributes to Jack Bogle

Thank you, Jack. Having worked in institutional finance in my career, both on Wall Street and on the buy side, I know first hand that most large financial institutions have major conflicts of interest with their customers. Caveat emptor. Vanguard as a result of Jack's philosophy was a breath of fres...
by Counterpoint
Sun Dec 23, 2018 8:46 pm
Forum: Personal Investments
Topic: First-time TLH questions (+ interaction with Roth conversions)
Replies: 2
Views: 294

Re: First-time TLH questions (+ interaction with Roth conversions)

So what does it look like when you check? It should show shares purchased. Thanks, livesoft. I went back and looked more closely at my Vanguard account and you’re correct that the dividend reinvestment already happened on Dec 21. In the old mutual fund platform (for our IRAs), the dividend payment ...
by Counterpoint
Sun Dec 23, 2018 2:51 pm
Forum: Personal Investments
Topic: First-time TLH questions (+ interaction with Roth conversions)
Replies: 2
Views: 294

First-time TLH questions (+ interaction with Roth conversions)

I’m planning to do my first TLH and would like to check a few things. Background: This would be with VTSAX i.e. Vanguard Total Stock Market (TSM) in our taxable account: Current losses on the highest-cost lots are about $7K. Sadly given about $2K in TSM dividends received Dec 21 and I believe schedu...
by Counterpoint
Sat Dec 15, 2018 2:02 pm
Forum: Investing - Theory, News & General
Topic: What should a new investor being reading?
Replies: 30
Views: 2638

Re: What should a new investor being reading?

Oddly, I had just put together a list and detailed recommendations for a few people who had asked me the same question, and in fact read a whole bunch of them in the last month to help them out. If you have the time and interest, I’d highly suggest spending the money to buy a few books. Yes, you can...
by Counterpoint
Mon Sep 17, 2018 7:55 am
Forum: Investing - Theory, News & General
Topic: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors
Replies: 17
Views: 2500

Re: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors

Just out of curiosity, how much extra ER are you willing to pay for a hedged developed markets fund, and why that amount? Estimates of hedging cost due to bid-ask spreads are made in this Vanguard piece: https://personal.vanguard.com/pdf/icrifi.pdf See pages 16-17 and in particular Figure 11 and it...
by Counterpoint
Sun Sep 16, 2018 10:10 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors
Replies: 17
Views: 2500

Re: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors

In pushing the question to a logically possible (but not actually implemented) extreme, I see your point entirely - if Vanguard advised 100% FI portfolios, and they stuck to their 100% hedged position, then there would be currency concentration risk. I agree. But the first of those premises is fals...
by Counterpoint
Sun Sep 16, 2018 10:00 am
Forum: Investing - Theory, News & General
Topic: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors
Replies: 17
Views: 2500

Re: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors

Rationale for International Investing and Undesired Currency Overlay More broadly, part of the relative important of currency risk depends on an investor’s portfolio. My portfolio is a 100% allocation to equities since we are in a comfortable financial position and don't need to draw down the portf...
by Counterpoint
Sun Sep 16, 2018 9:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors
Replies: 17
Views: 2500

Re: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors

Concentration Risk: Vanguard’s FI hedging implies this risk is very small Thanks for your thoughtful response, Noobvestor. Even if you and I have different perspectives on the same information, it was instructive to see your reasoning. I’ll address a couple of specific issues in this post, and foll...
by Counterpoint
Wed Sep 12, 2018 10:19 am
Forum: Investing - Theory, News & General
Topic: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors
Replies: 17
Views: 2500

Re: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors

Thanks for the response, noobvestor. First of all, I should have separated out the facts/analytical results (that the historical data shows that US investors would have reduced volatility by hedging) from my opinion (that currency diversification is not a good reason for engaging in international e...
by Counterpoint
Tue Sep 11, 2018 9:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors
Replies: 17
Views: 2500

Re: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors

Hedged EAFE ETF from iShares costs 0.35%. I feel certain that Vanguard could beat that price. Yup, this is the HEFA I was referring to. I mistakenly referred to it (and DBEF - Deutsche Bank's X-Trackers MSCI EAFE Hedged Equity ETF) as index funds rather than the ETFs that they are. And I very much ...
by Counterpoint
Tue Sep 11, 2018 8:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors
Replies: 17
Views: 2500

Vanguard: Hedging international equities’ currency risk would have reduced portfolio volatility for US investors

This is one of the findings from an Aug 2018 research piece from Vanguard: https://personal.vanguard.com/pdf/ISGPCH.pdf They break down their analysis by home currency of the investor, but for US investors the key is in Figure 7b. It shows that over the last few decades, a US investor would have red...
by Counterpoint
Mon Sep 03, 2018 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Using Mint: Am I correct in having my security concerns allayed?
Replies: 18
Views: 2399

Re: Using Mint: Am I correct in having my security concerns allayed?

I only use mint to track spending, but I think you have the gist of it right. The Treasury deptment issued a report in fintech and it has a section on data aggregators and risks. It goes straight to this issue. I will say I don’t use mint for my investing accounts, just checking and credit cards. T...
by Counterpoint
Mon Sep 03, 2018 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Using Mint: Am I correct in having my security concerns allayed?
Replies: 18
Views: 2399

Using Mint: Am I correct in having my security concerns allayed?

I was wary of using financial aggregators because of concerns of having my passwords stored with them, which could conceivably lead to unauthorized transactions executed if the aggregator was hacked into. There’s a tradeoff between the benefits of aggregators (which vary depending on individual need...
by Counterpoint
Thu Aug 09, 2018 7:40 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24409

Re: "Don't Obsess About Expense Ratios"

I'm surprised that so many Bogleheads call either company for services. I'm a septugenarian and have not called either company more than I have described here in over 20 years. Of course, I don't have a smartphone. DMW My experience is that calling Vanguard has been helpful when it’s the first time...
by Counterpoint
Tue Aug 07, 2018 10:15 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24409

Re: "Don't Obsess About Expense Ratios"

So if you have your money in a taxable account at Vanguard that makes sense, but then again you're probably sitting on LTCG at this point, so you probably already wouldn't consider moving the funds for that reason. However, if one has an IRA or some other tax-deferred growth account at Vanguard and...
by Counterpoint
Tue Aug 07, 2018 3:06 pm
Forum: Personal Investments
Topic: Market Timing Bonds vs. Money Market with Rising Interest Rates
Replies: 27
Views: 3536

Re: Market Timing Bonds vs. Money Market with Rising Interest Rates

If you don't intend to spend any of that money in the next year or two, it shouldn't be in a money market fund. I don’t think I’d agree with such a blanket statement. In general, with other factors like credit and liquidity risk being equal, the advantage of investing in a bond fund compared to a M...
by Counterpoint
Tue Aug 07, 2018 1:52 pm
Forum: Personal Investments
Topic: Fee only advisor suggestion
Replies: 7
Views: 1406

Re: Fee only advisor suggestion

First of all, I want to clarify that I’m not suggesting getting an advice-only FA instead of getting answers on the BH forum. If the OP is only looking for a simple portfolio review, or even answers to specific financial questions, BH is terrific and probably sufficient. But I’ve provided below situ...
by Counterpoint
Tue Aug 07, 2018 11:50 am
Forum: Personal Investments
Topic: Market Timing Bonds vs. Money Market with Rising Interest Rates
Replies: 27
Views: 3536

Re: Market Timing Bonds vs. Money Market with Rising Interest Rates

So I deposited $25K in Vanguard this week which would typically go to my Bond allocation. Are you saying it was a mistake to put it in VMMXX @ 2.06% vs. VBTLX? I would suggest looking at your bond allocation in a portfolio context. If it’s part of a standard stock/bond allocation, the bond portion ...
by Counterpoint
Tue Aug 07, 2018 8:33 am
Forum: Investing - Theory, News & General
Topic: Treasury term premium estimate: negative in most of 2017, now 2018 too (NY Fed Adrian, Crump, Moench model)
Replies: 51
Views: 7004

Re: Treasury term premium estimate: negative in most of 2017, now 2018 too (NY Fed Adrian, Crump, Moench model)

Just saw this thread, and thought I'd post a couple of links to interesting articles I've read on the term premium (especially the current negative term premium according to the ACM model): Good overview by Ben Bernanke on what drives the term premium (a bit old, from 2015, but still useful as a pri...
by Counterpoint
Mon Aug 06, 2018 7:56 pm
Forum: Personal Investments
Topic: Fee only advisor suggestion
Replies: 7
Views: 1406

Re: Fee only advisor suggestion

I used this site to get 3 suggestions for advice-only financial advisors in my area (who charge by the hour, not based on AUM - Assets Under Management): https://adviceonlyfinancial.com The site is run by Harry Sit, the author of The Finance Buff, who is also a respected BH poster. I paid $200 for i...
by Counterpoint
Mon Aug 06, 2018 7:28 pm
Forum: Personal Investments
Topic: Market Timing Bonds vs. Money Market with Rising Interest Rates
Replies: 27
Views: 3536

Re: Market Timing Bonds vs. Money Market with Rising Interest Rates

Bond yields are determined by bond traders, based on their expectations of future economic conditions; they already know about the Fed policy, and trade at prices which reflect it. The yield of a five-year bond should be equal to bond traders' expectations of short-term rates over the next five yea...
by Counterpoint
Fri Jul 27, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Will or Trust?
Replies: 53
Views: 5644

Re: Will or Trust?

... By far the more important issue is whether to provide for your children in trust rather than outright. I agree with FIREchief to provide for your children in trust rather than outright. If it's appropriate, you can give each child effective control over her trust at a specified age. I'm curious...
by Counterpoint
Fri Jun 22, 2018 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Will or Trust?
Replies: 53
Views: 5644

Re: Will or Trust?

People are conflating two different issues: whether to create a revocable trust, and whether to provide for your children outright or in trust. You can put the same dispositive provisions (who gets what, and under what terms) either in a Will or in a revocable trust. Revocable trusts make sense in ...