Search found 4840 matches

by FIREchief
Fri Aug 07, 2020 6:22 pm
Forum: Investing - Theory, News & General
Topic: Carry on or Take your toys and go home ?
Replies: 68
Views: 4360

Re: Carry on or Take your toys and go home ?

There has been dysfunction in Washington and rising debt for as long as I can remember. New Covid cases/deaths/hospitalizations are falling in most areas of the Country. In other words, "same as it ever was." 8-) Fact check: COVID deaths in the U.S. are now up to 2,000 a day according to Johns Hopk...
by FIREchief
Fri Aug 07, 2020 6:01 pm
Forum: Investing - Theory, News & General
Topic: Carry on or Take your toys and go home ?
Replies: 68
Views: 4360

Re: Carry on or Take your toys and go home ?

There has been dysfunction in Washington and rising debt for as long as I can remember. New Covid cases/deaths/hospitalizations are falling in most areas of the Country. In other words, "same as it ever was." 8-) Fact check: COVID deaths in the U.S. are now up to 2,000 a day according to Johns Hopk...
by FIREchief
Fri Aug 07, 2020 6:01 pm
Forum: Investing - Theory, News & General
Topic: Carry on or Take your toys and go home ?
Replies: 68
Views: 4360

Re: Carry on or Take your toys and go home ?

There has been dysfunction in Washington and rising debt for as long as I can remember. New Covid cases/deaths/hospitalizations are falling in most areas of the Country. In other words, "same as it ever was." 8-) Fact check: COVID deaths in the U.S. are now up to 2,000 a day according to Johns Hopk...
by FIREchief
Fri Aug 07, 2020 3:30 pm
Forum: Investing - Theory, News & General
Topic: 100% Stocks - S&P Envy vs 60/40
Replies: 89
Views: 4226

Re: 100% Stocks - S&P Envy vs 60/40

TheTimeLord wrote:
Fri Aug 07, 2020 8:45 am
Say you wanted to take advantage of the 2009-2010 drop and build your dream home but your portfolio was way down.
That's feature, not a glitch. Being "forced" to leave money in the market and not build some silly McMansion is a good thing! 8-)
by FIREchief
Fri Aug 07, 2020 12:50 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting treasury bonds
Replies: 8
Views: 446

Re: Tax loss harvesting treasury bonds

Is another 30 year treasury bond, bought at a different interest rate, substantially identical? It probably depends on how different the rates are and if there are any other differences. From the white paper linked above: It can be noted that the ratio between the coupon rates of the two bonds (3.4...
by FIREchief
Fri Aug 07, 2020 12:47 pm
Forum: Investing - Theory, News & General
Topic: Carry on or Take your toys and go home ?
Replies: 68
Views: 4360

Re: Carry on or Take your toys and go home ?

how do you ignore the facts of rising dysfunction in Washington , rising Covid, ever rising debt and now even the aura of the almighty US dollar starting to dim as a reserve currency ( which is probably the main reason for US superpower status ) ? There has been dysfunction in Washington and rising...
by FIREchief
Thu Aug 06, 2020 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: How to structure inheritance/trust
Replies: 35
Views: 2028

Re: How to structure inheritance/trust

The most effective way to achieve the OP's goal is to give them less. To the extent that I understand the OP's goal, this makes little sense. The OP appears to want to help his/her kids, but is concerned about giving "too much" which will result in demotivation. We don't know the kids, so we don't ...
by FIREchief
Thu Aug 06, 2020 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: How to structure inheritance/trust
Replies: 35
Views: 2028

Re: How to structure inheritance/trust

It would be unfortunate if the GRAT left them enough money that it ruled out some potential future strategies (eg. only give them money based on how much they've earned themselves isn't much good for motivating them to work hard if they have a lot of money from this trust). Are you really consideri...
by FIREchief
Thu Aug 06, 2020 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: How to structure inheritance/trust
Replies: 35
Views: 2028

Re: How to structure inheritance/trust

We will be donating plenty to charity but I want them to have access to money they can leverage for entrepreneurial endeavors, research, investing, etc. but not alcohol, lazing about, etc. It seems like there should be some resources/books/studies on how to not "mess up" your children with money bu...
by FIREchief
Thu Aug 06, 2020 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: How to structure inheritance/trust
Replies: 35
Views: 2028

Re: How to structure inheritance/trust

The most effective way to achieve the OP's goal is to give them less. To the extent that I understand the OP's goal, this makes little sense. The OP appears to want to help his/her kids, but is concerned about giving "too much" which will result in demotivation. We don't know the kids, so we don't ...
by FIREchief
Thu Aug 06, 2020 11:27 am
Forum: Personal Investments
Topic: Is TIPS a good idea for short-term cash holding right now?
Replies: 13
Views: 942

Re: Is TIPS a good idea for short-term cash holding right now?

I wouldn't put money into any kind of bond fund if I need it within a year. If the fed surprises us and backs away from zero percent interest rates, those bond funds could plunge. 'Plunge' might be a bit hyperbolic if we're talking about a short-term bond fund with a very low duration. But a high-y...
by FIREchief
Thu Aug 06, 2020 9:12 am
Forum: Investing - Theory, News & General
Topic: When and how often do you rebalance?
Replies: 51
Views: 2362

Re: When and how often do you rebalance?

While in accumulation mode, I was 100% equities; so I never rebalanced. Now post-FIRE, I use an LMP/RP strategy, so I never rebalance. 8-)
by FIREchief
Thu Aug 06, 2020 1:23 am
Forum: Personal Finance (Not Investing)
Topic: How to structure inheritance/trust
Replies: 35
Views: 2028

Re: How to structure inheritance/trust

Full context: I'm creating a GRAT and I want the beneficiary of the GRAT to be a trust for my children. In order to take advantage of not having to pay gift tax it needs to be an irrevocable trust that I am not in control of. I'm trying to figure out how to structure it (pay out at X age seems to i...
by FIREchief
Thu Aug 06, 2020 12:04 am
Forum: Personal Finance (Not Investing)
Topic: How to structure inheritance/trust
Replies: 35
Views: 2028

Re: How to structure inheritance/trust

@bsteiner - Do irrevokable trusts allow for giving the trustee discretion? If the trustee has discretion and passes away will the amount in excess of $5m (the exemption) be subject to estate tax? I think you're confusing a few different issues. You mention inheritance/trusts, but it's not clear wha...
by FIREchief
Wed Aug 05, 2020 3:56 pm
Forum: Personal Investments
Topic: Is TIPS a good idea for short-term cash holding right now?
Replies: 13
Views: 942

Re: Is TIPS a good idea for short-term cash holding right now?

I wouldn't put money into any kind of bond fund if I need it within a year. If the fed surprises us and backs away from zero percent interest rates, those bond funds could plunge.
by FIREchief
Wed Aug 05, 2020 3:52 pm
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

Any time the topic of backtesting comes up, it seems that 'camps' emerge where one side argues that inductive, empirical data driven decision making (i.e. backtesting) is superior and another side argues that deductive, theory driven decision making is superior. As a social scientist who probably s...
by FIREchief
Wed Aug 05, 2020 2:07 pm
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

bigskyguy wrote:
Wed Aug 05, 2020 2:02 pm
Return of investment can trump return on investment.
:sharebeer (I've never heard that one before) 8-)
by FIREchief
Wed Aug 05, 2020 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Building a new home (non-custom) Any advice from your experience?
Replies: 18
Views: 1112

Re: Building a new home (non-custom) Any advice from your experience?

If I ever do have another new home built (I highly doubt I will), I would find out if using a realtor meant that we would use the standard MLS contract instead of the builder's contract. I would insist upon having an inspector visit at various key points (i.e. completed framing, completed plumbing/...
by FIREchief
Wed Aug 05, 2020 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Building a new home (non-custom) Any advice from your experience?
Replies: 18
Views: 1112

Re: Building a new home (non-custom) Any advice from your experience?

Am I allowed on-site to inspect at various times before drywall goes up? Per contract, I was not allowed on the site. Did it stop me? Absolutely not. Did my activities irritate the construction superintendent? Highly likely. Did I care? Not at all. What is their recourse? Sue for damages? Cancel my...
by FIREchief
Wed Aug 05, 2020 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Building a new home (non-custom) Any advice from your experience?
Replies: 18
Views: 1112

Re: Building a new home (non-custom) Any advice from your experience?

- Paint - do not pay for multiple colors. Do pay to have the ceilings painted . Paint is cheap, easy and sweat equity, but if you pay them to paint multiple coats or multiple colors at the build, they charge a lot for it. Best upgrade I ever made in a new home was paint. The builders here all use s...
by FIREchief
Wed Aug 05, 2020 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Building a new home (non-custom) Any advice from your experience?
Replies: 18
Views: 1112

Re: Building a new home (non-custom) Any advice from your experience?

- do people usually use a realtor when buying a new build? I looked at 3-4 existing houses with my realtor friend over the last 6 months, but we don't have a contract or any kind of agreement. Would it be ethical/customary/legal to offer her to split her share of the commission 50-50 since she will...
by FIREchief
Wed Aug 05, 2020 11:57 am
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

...US tax system taxes the gains in coupon & principal on TIPS that stem from higher inflation, even though these are not, in fact, real gains for the investor. Thus inflation protection diminishes as inflation rates rise (in taxable situations)... This is a tax fact, not a TIPS fact. It is true fo...
by FIREchief
Wed Aug 05, 2020 11:56 am
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

I would consider heavy/extreme inflation to be in the 7% to 15% range, which I would fully expect to be compensated for with my TIPS. I have some magic beans for sale if you're interested :D Are you suggesting that the US Treasury would not adjust my TIPS principle to account for 7% to 15% inflatio...
by FIREchief
Wed Aug 05, 2020 10:44 am
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

So, I guess your answer is "no." Exactly what I expected. 8-) Actually I think that All Seasons' post was pretty dang well reasoned and robust there. I don't see where he's made any real errors in his logic and his conclusion seems sensible. Well, his argument seemed to be based upon the premise th...
by FIREchief
Wed Aug 05, 2020 10:39 am
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

TIPS lose inflation protection at high rates of inflation because: - (I think) the CPI adjustment is done with a lag, and I think the investor bears the risk of that lag? So if your inflation rate is say 10% pcm, you could lose 30% of value I believe... that if one is holding TIPS to maturity, and ...
by FIREchief
Wed Aug 05, 2020 10:37 am
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

Thanks. To say "gold is good, TIPS are worthless" is a bit of an extreme position, perhaps not to be taken seriously. As a point of clarification, I never commented on the usefulness of Gold. That other poster stated that: TIPS offer guaranteed inflation protection. The guarantee is only good under...
by FIREchief
Wed Aug 05, 2020 10:08 am
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

So, I guess your answer is "no." Exactly what I expected. 8-) The only thing you’ve demonstrated with this comment is that you don’t have a legitimate rebuttal. If I don’t have a “basis” for my statement then maybe you should demonstrate why you have a basis for why I am wrong. All I see in the def...
by FIREchief
Wed Aug 05, 2020 9:59 am
Forum: Personal Finance (Not Investing)
Topic: COBRA and Possible Break in Coverage
Replies: 13
Views: 864

Re: COBRA and Possible Break in Coverage

I would suggest waiting to see if he has any need for the coverage If son needs medical and is not actively enrolled in cobra, he will need to pay upfront ( at least in part) and then seek reimbursement retroactively. This happened to me. It was very unpleasant. Did the payment exceed 60 days of CO...
by FIREchief
Tue Aug 04, 2020 8:59 pm
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

All Seasons wrote:
Tue Aug 04, 2020 8:14 pm
TIPS offer guaranteed inflation protection. The guarantee is only good under conditions of mild inflation -- it will be useless under heavy/extreme inflation.
Do you have any basis for that comment, or does it just "sound good?" :P
by FIREchief
Tue Aug 04, 2020 5:56 pm
Forum: Investing - Theory, News & General
Topic: TIPS Fund vs Gold Fund
Replies: 77
Views: 3071

Re: TIPS Fund vs Gold Fund

justsomeguy2018 wrote:
Tue Aug 04, 2020 5:51 pm
If there were some kind of rampant hyper-inflation, would TIPS owners get an insanely high payout in interest vs. non-TIPS owners?
Sure, why wouldn't we? :confused
by FIREchief
Tue Aug 04, 2020 5:23 pm
Forum: Personal Investments
Topic: With Bond rates so low how am I up 8.5% ytd
Replies: 8
Views: 1127

Re: With Bond rates so low how am I up 8.5% ytd

chitownguy wrote:
Tue Aug 04, 2020 3:35 pm
FXNAX (Fidelity) is up 8.5% ytd and 10% for the year. If rates are hovering around 2-3% how am I up 8.5% and why shouldn't I put more of my money in this fund.
Be aware that if rates go back to where they were at the beginning of the year you will lose most of that 8.5%. :twisted:
by FIREchief
Tue Aug 04, 2020 5:21 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Group sells largest US Private Placement deal in history
Replies: 29
Views: 3369

Re: Vanguard Group sells largest US Private Placement deal in history

Svensk Anga wrote:
Tue Aug 04, 2020 3:11 pm
So what capital expenditures is Vanguard raising money for?
Margin lending?? (I really don't know, I'm just guessing :P )
by FIREchief
Tue Aug 04, 2020 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: House donation to charity double edit
Replies: 15
Views: 541

Re: House donation to charity

Off the top of my head..... If the house is really, really, highly appreciated and you have strong desires to support the charity, it might provide the benefit to the charity while also avoiding some capital gains taxes (similar to donating appreciated securities). Otherwise, I'm not sure it would m...
by FIREchief
Tue Aug 04, 2020 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: COBRA and Possible Break in Coverage
Replies: 13
Views: 864

Re: COBRA and Possible Break in Coverage

I would suggest waiting to see if he has any need for the coverage If son needs medical and is not actively enrolled in cobra, he will need to pay upfront ( at least in part) and then seek reimbursement retroactively. This happened to me. It was very unpleasant. Did the payment exceed 60 days of CO...
by FIREchief
Tue Aug 04, 2020 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: COBRA and Possible Break in Coverage
Replies: 13
Views: 864

Re: COBRA and Possible Break in Coverage

I would have him sign and date the paperwork to initiate his coverage retroactive to his loss of coverage. He doesn't need to submit it, but it should be available in the event (God forbid) that he is in a serious accident or otherwise experiences a health crisis. Even if he were to be in a comma, y...
by FIREchief
Tue Aug 04, 2020 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA (distribution) + backdoor ROTH same year - any tips on how to report on tax return ?
Replies: 9
Views: 394

Re: Inherited IRA (distribution) + backdoor ROTH same year - any tips on how to report on tax return ?

As an aside, RMDs were waived for 2020 because of COVID. So you didn't need to take one from the inherited IRA, and may be able to return it if you choose to. If the IRA was inherited after Jan 1, I don't believe this is relevant, as the SECURE act changes would not require any specific annual RMDs.
by FIREchief
Tue Aug 04, 2020 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Crummey trust as eventual recipient of inherited Roth IRA?
Replies: 13
Views: 1133

Re: Crummey trust as eventual recipient of inherited Roth IRA?

I found the following paper, although ten years old, to be very enlightening: https://scholarlycommons.law.hofstra.edu/cgi/viewcontent.cgi?article=1460&context=faculty_scholarship It's a bit like drinking from a fire hose, but I made it through. It seems to raise more questions than answers regardin...
by FIREchief
Tue Aug 04, 2020 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Should we move?
Replies: 22
Views: 1730

Re: Should we move?

I guess I'll be the contrarian. This sounds like a very attractive approach, assuming relationships are good with the in-laws. I would expect the in-laws to immediately transfer the plot of land the house is on to the OP. We're probably talking about no more than an acre on what may be a 640 - 1080 ...
by FIREchief
Tue Aug 04, 2020 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Crummey trust as eventual recipient of inherited Roth IRA?
Replies: 13
Views: 1133

Re: Re:

However, I do use a Crummey (note spelling!) trust for my kids as a mechanism for transferring annual gift tax exclusion amounts into a trust. I hope TomatoTomahto, it's good to have one of our respected posters who is actually using this tool weigh in. I have a few questions about how you've set u...
by FIREchief
Tue Aug 04, 2020 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Crummey trust as eventual recipient of inherited Roth IRA?
Replies: 13
Views: 1133

Re: Crummey trust as eventual recipient of inherited Roth IRA?

As I understand it, a Crummy trust is an irrevocable trust established and funded during the lifetime of the Grantor. It includes requirements to allow the trust beneficiary to withdraw contributions to the trust within 30 – 60 days after the contributions. This provides the beneficiary with an “im...
by FIREchief
Tue Aug 04, 2020 12:39 am
Forum: Personal Finance (Not Investing)
Topic: Crummey trust as eventual recipient of inherited Roth IRA?
Replies: 13
Views: 1133

Re: Crummey trust as eventual recipient of inherited Roth IRA?

Did you consider a Intentionally defective grantor trust (IDGT)? From what I recall, you can give money every year (like a Crummey Trust), it is no longer part of your estate for estate value (and liability shielding?), but you pay the taxes on dividend income and cap gains as if it were your money...
by FIREchief
Mon Aug 03, 2020 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Opening a trust for child's annual gifted amount
Replies: 42
Views: 3669

Re: Opening a trust for child's annual gifted amount

I think that the settlor or a related party could technically serve. I’m not sure that there’s a regulatory cite. Most of this has developed in the case law to my knowledge. Even though I think it’d technically be allowed, I should clarify that we’d generally never recommend it. Essentially, if you...
by FIREchief
Mon Aug 03, 2020 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Crummey trust as eventual recipient of inherited Roth IRA?
Replies: 13
Views: 1133

Re:

However, I do use a Crummey (note spelling!) trust for my kids as a mechanism for transferring annual gift tax exclusion amounts into a trust. I hope TomatoTomahto, it's good to have one of our respected posters who is actually using this tool weigh in. I have a few questions about how you've set u...
by FIREchief
Mon Aug 03, 2020 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Opening a trust for child's annual gifted amount
Replies: 42
Views: 3669

Re: Opening a trust for child's annual gifted amount

A lot of good information in this thread, but one issue is confusing me. Several posters are suggesting that if I were to create a non-Grantor CRUMMEY trust for my adult child, and I were to subsequently fund it each year to the maximum exclusion amount ($15K), that I would then NOT be able to act ...
by FIREchief
Mon Aug 03, 2020 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: Opening a trust for child's annual gifted amount
Replies: 42
Views: 3669

Re: Opening a trust for child's annual gifted amount

... The "gift tax trust" I discuss in this thread is just trying to get some extra off-estate money to the kids, separate from the funding that will take place upon our deaths. Let's say I live another 20 years, my wife another 30 years: that's 50 x $15k per child of funding that passes outside of ...
by FIREchief
Mon Aug 03, 2020 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Crummey trust as eventual recipient of inherited Roth IRA?
Replies: 13
Views: 1133

Re: Crummey trust as eventual recipient of inherited Roth IRA?

Here's another thread with a lot of good information related to Crummey trusts:

viewtopic.php?f=2&t=192265
by FIREchief
Mon Aug 03, 2020 4:54 pm
Forum: Personal Consumer Issues
Topic: Chimney Damper Open Slightly - Why?
Replies: 6
Views: 583

Re: Chimney Damper Open Slightly - Why?

In my previous house I had a gas log installed by the gas company (a free service). The installation guy installed a clamp on the damper to prevent it from closing entirely. I believe it was a code requirement to keep the fireplace from somehow killing me. :twisted: I just accepted it and never had ...
by FIREchief
Mon Aug 03, 2020 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Naming sons as Roth primary beneficiaries
Replies: 24
Views: 1660

Re: Naming sons as Roth primary beneficiaries

Actually the sons would have to empty the account by the end of the 5th year. TravelfoFun Per the SECURE Act taking effect 1/1/20, the sons would be considered non-eligible designated beneficiaries. For this group, the five-year rule changed to the ten-year rule. The article below from Kitces summa...
by FIREchief
Mon Aug 03, 2020 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Applying for Medicare: Dental Coverage Question?
Replies: 10
Views: 519

Re: Applying for Medicare: Dental Coverage Question?

FIREchief, my wife is 55 YO, so we will be funding her family HSA for ten more years. Sounds like the HSA may be the best source for covering large dental expenses. You agree? This is basically what we've done (although we've paid out of pocket and deferred tax free reimbursement from the HSA until...
by FIREchief
Mon Aug 03, 2020 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Applying for Medicare: Dental Coverage Question?
Replies: 10
Views: 519

Re: Applying for Medicare: Dental Coverage Question?

I have found that most individual dental and vision plans are really just plans to pre-pay routine expenses at slightly favorable contracted rates. I realize that many Medicare Advantage plans advertise vision and dental coverage (along with gym membership, which is worthless to me), but I really wo...