Search found 76 matches

by awizard
Thu Nov 12, 2020 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: IHG Vacation Club (Possible Inheritance) - Seeking Clarity
Replies: 36
Views: 3567

Re: IHG Vacation Club (Possible Inheritance) - Seeking Clarity

2) My parents want us to sign paperwork now so that it bypasses inheritance taxes later (from what I understand). If you sign something now, you will probably be a co-owner and possibly be responsible for any payments/maintenance fees they don't pay. I think that when they die, no-one has to continue those payments. Is there a way to confirm this? Of course, if there is a co-owner, the remaining points would go to the co-owner. But are your parents ever going to be subject to inheritance taxes? That sounds like a sales gimmick to me. (This reminds me of when I was a volunteer tax preparer and there were a few people who felt gypped out of their "energy savings"/solar tax credit since they didn't owe any taxes anyway, so there was...
by awizard
Thu Nov 12, 2020 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: IHG Vacation Club (Possible Inheritance) - Seeking Clarity
Replies: 36
Views: 3567

Re: IHG Vacation Club (Possible Inheritance) - Seeking Clarity

WoodSpinner wrote: Wed Nov 11, 2020 6:02 pm OP,

Check out the Timeshare Users Group....
https://tug2.com/Home.aspx?gclid=CjwKCA ... l0QAvD_BwE

Unless your folks estate is worth above $22MM you likely won’t have to worry about Estate taxes (at least federally). Getting the kids to sign as co-owners is a likely a scam Suggested by the sales people to the next generation into the fees ( versus many who decline to inherit).


WoodSpinner

This was my assumption as well based on what I know of estate taxes. My parents estate no where near $22MM.


Thank you all for the responses and solidifying my notion to respectfully decline / run away.
by awizard
Wed Nov 11, 2020 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: IHG Vacation Club (Possible Inheritance) - Seeking Clarity
Replies: 36
Views: 3567

Re: IHG Vacation Club (Possible Inheritance) - Seeking Clarity

Thank you all for the responses so far. Here are some answers to questions above: 1) I am not sure if we would be co-owners or if when my parent pass it would be split and treated as individuals. Good point to follow up on here. Thank you for pointing this out. 2) My parents want us to sign paperwork now so that it bypasses inheritance taxes later (from what I understand). 3)I am not sure of their exact spend for the points, but I heard figures in that 40-50K range. As far as I know the points are permanent i.e. infinity. 4) we can afford our share and to be honest we can afford both shares of the maintenance fees. The concern here isn't can we afford. Our concern is "is it worth the cost and do these current small maintenance fees bal...
by awizard
Wed Nov 11, 2020 11:10 am
Forum: Personal Finance (Not Investing)
Topic: IHG Vacation Club (Possible Inheritance) - Seeking Clarity
Replies: 36
Views: 3567

IHG Vacation Club (Possible Inheritance) - Seeking Clarity

My parents recently purchased 260,000 points in the IHG Vacation Club. With this purchase, they want to ensure that these points pass onto me and my sibling upon their death as an inheritance. A few ground rules of understanding: 1) I understand the basics on how these point systems work (you exchange points for X days/weeks of vacation based on time of year, location etc.). I am not guru at total understanding. 2) I have no direct real world experience at staying at any of these places to know if extra fees are levied when you do activities. 3) Per my parents, they plan to pay off the "mortgage" and then the points would be split between sibling and myself. 4) We would have to pay the maintenance fees after they are gone. Current...
by awizard
Tue May 01, 2018 7:28 am
Forum: Personal Consumer Issues
Topic: Daughter and Girlfriend, age 19, taking cross country road trip. Advice?
Replies: 187
Views: 15366

Re: Daughter and Girlfriend, age 19, taking cross country road trip. Advice?

The cell phone coverage is something I have thought about. Will a stand-alone GPS unit work in those areas? Good ideas about bringing bottles of water and bars of some kind. Reminding them to keep gas in the tank is a good idea. Thanks! gasdoc Get one of these for her: https://www.findmespot.com/en/ These are used for back country skiers, they work anywhere and help comes at the press of a button. If they break a leg in the middle of nowhere desert you can get help at the press of a button. I believe 1-2 helocopter rides are free as well with this particular device once purchased! To say this wont happen is kind of crazy, a coworkers kid was hiking the Grand Canyon just two weeks ago. She did a stupid kid thing that resulted in a broken le...
by awizard
Thu Mar 09, 2017 10:26 am
Forum: Personal Consumer Issues
Topic: Zero-Turn Mowers
Replies: 70
Views: 12523

Re: Zero-Turn Mowers

Does anyone have any recommendations for a zero-turn mower? I'm in the market for a entry level mower that's between 42-48 inches. I'd like to stay below 3200 on the purchase. If not specifically zero-turns what about a brand of mower that you have been happy with? Thanks! You never said what the terrain that you are mowing is like. You will not like a zero turn if you have hills that are steep. I mow 3.5 acres and we use a garden tractor with a 60" deck because we are on a steep enough hill that would make it too hard to control the zero turn. We were recommended to buy the garden tractor. That recommendation came from my FIL and his coworker who both sell John Deere lawnmowers at the locale JD outlet. We were also recommended to buy...
by awizard
Tue Feb 07, 2017 7:21 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

Oy, this sounds like lots of drama. Family farms really can be a financial and familial nightmare. It seems to me like you (and maybe your spouse) are organizing your lives around this family and their farms based on the assumption that you are going to receive some relatively equal portion of land/assets at some point. That is the real problem. You're probably providing endless amounts of unpaid labor on these properties. It sounds like you are sacrificing your career or income potential to some degree. You're limiting your geography options to the small radius around these properties. Etc. I understand why you can't let this go. It's not about being greedy. If you knew for a fact you wouldn't receive anything, you might be Ok with that b...
by awizard
Mon Feb 06, 2017 11:49 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

The only gift we received to date is a lawnmower. This cracked me up. In the spirit of full disclosure, my in-laws never gave us anything as extravagant as a lawn mower. I probably would have put my foot down, and decided that I didn't care for my kids to have a relationship with grandparents who would make my signing that agreement a condition for having a relationship. If I don't teach my kids to stand up for themselves and not be bribed and bullied, who will? Having said that, since you did indeed sign that document willingly, the thing for you to do is accept that you signed it and not say one more word about it on this forum or anywhere else. Seriously. You signed it, you own the decision to sign it, it is done, accept it and move on....
by awizard
Mon Feb 06, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

.....The agreement is simple. IF you own any property it must be offered back to the farm (other owners) at a fair market price before you place the property on the general market. That is the simplified writing in non-lawyer speak. SO basically, the house that my spouse and I live in would have to be offered to the spouses siblings before we could sell. This was put in place as their wishes was to keep farmalnd in the family..... IF the property on which your home is located was within the "family farm" originally, their request is quite reasonable. This statement seems to indicate some portion of a farm was carved out for you to build a home. Non-farming folks bordering a farm can be hostile neighbors. They sometimes don't real...
by awizard
Mon Feb 06, 2017 10:40 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

newbie_Mo wrote:"any land I owned"? How about your own house?
That would be included and I brought that point up.
by awizard
Mon Feb 06, 2017 10:39 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

Market value. No other details.
by awizard
Mon Feb 06, 2017 10:20 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

Tell us more about this real estate agreement you signed. And, I don't think your in-laws are "great people." They strike me as control freaks who like having their little family web to control with property. You might find this article on narcissism and farming helpful: http://agriculturestrategy.com/blog/2013/8/30/narcissism Without knowing more details, my advice would be for you and your wife to eliminate all financial entanglements with the in-laws, including continuing to own real estate gifted to you by them. They appear to be using their wealth to control their children. Not telling you about their long-term plan is part of the control. The beauty of "financial independence" is that your personal relationships a...
by awizard
Mon Feb 06, 2017 10:01 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

Have an attorney look at the agreement you signed, with any luck you may find that it is not enforceable. I would stay miles away from the financial affairs and grip of anyone who used emotional blackmail or any other inducements to force me or my spouse to sign such an agreement. That does not mean separation from family, but separation from their wealth and holdings and threats and promises for inheritance. It is fine to love mom's apple pie and ignore dad's opinions about farming. Your story confirms my belief that everyone else's family is weird. Mine of course is perfectly normal. I like your last sentence. I plan to let it go. However, it is the whole signing of the agreement that kind of has me in a tizzle. It made it harder to let ...
by awizard
Mon Feb 06, 2017 9:53 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

lhl12 wrote: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.
Our children are blood born as you will. I have been married to my spouse and only my spouse. My spouse and I have been together since high school. No other spouses.
by awizard
Mon Feb 06, 2017 9:45 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

LarryAllen wrote:
awizard wrote:
RudyS wrote: Per the other response. My inlaws are not doing trust(s). They are directly signing over deeds. They have already started the process.

This is usually a very bad idea as you lose the step-up in basis, that would otherwise be received at death, so you might talk to a CPA/attorney about that deeding plan. Trusts are generally better than deeds for this among other reasons.

The inlaws do not care about step up basis. Their wish is that the farms will be farmed forever through the generations. With that in mind, I do not see a convincing argument to attempt to change their mind about their plan.
by awizard
Mon Feb 06, 2017 9:44 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

2) I have been coerced (basically to keep the peace) into signing a real estate agreement by in-laws that simply states that "any land I own has to be offered back to another family member before we could sell on the open market." I can't figure out what you mean by this. Any land you own now and paid for with your own money? Any land your in-laws have "given" you? Any land they might "give" your spouse, or you? The 1/4 of the "home farm" that was "given" to your spouse, not to you? In any case, your in-laws are creating family drama whether they intend to or not. People don't always realize that by hoping that things all sort of work out in a vague undefined way, but not really committing ...
by awizard
Mon Feb 06, 2017 9:36 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

Re: In-Laws Estate Planning - Wisdom Wanted

If your spouse is OK with this, and her "calm and nonchalant" attitude is real, and you don't need the money (or land, etc), then you should ask yourself, is there really anything I should do, or need to do here? In my work career I have eventually realized that the question "how can I do this" as not the same as "should I do this." I agree with your thought about "should I do this," which si where I am. However, I do not see this as my spouse and I need things type of situation. I see it as a "they liked their other children better" type of situation (which I do not think is true). This, I feel, could cause irreputable harm to my spouses relationship with siblings and effect the running of...
by awizard
Mon Feb 06, 2017 8:34 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws Estate Planning - Wisdom Wanted
Replies: 50
Views: 4310

In-Laws Estate Planning - Wisdom Wanted

I would like some wisdom from people who in their past have been given the privledge to listen in on their in-laws estate plans as they are in the planning/execution stages. First a few things to recognize from my point of view: 1) My spouse and I have always maintained a blood-talks-to-blood mentality when it comes to talking to our families about anything, especially money. 2) I have been coerced (basically to keep the peace) into signing a real estate agreement by in-laws that simply states that "any land I own has to be offered back to another family member before we could sell on the open market." 3) I have witnessed a family business (on my side) in the past tear apart an entire family to the point where some of the family d...
by awizard
Mon Jan 16, 2017 5:22 pm
Forum: Personal Consumer Issues
Topic: Vacationing in Florida (Advice Requested)
Replies: 22
Views: 2856

Re: Vacationing in Florida (Advice Requested)

Gill wrote:I think your best bet while you're at the Hilton is the hotel pool. It will be much more comfortable than the Gulf. There isn't a great deal to do in downtown St. Pete although you're not too far from St. Pete Beach. I would suggest checking out on Wednesday and going somewhere else such as Clearwater Beach, St. Pete Beach, Longboat Key, Siesta Key or perhaps Orlando.
Gill
I think this is our plan. Spend the days keeping kid busy while at conference, then leave town to get closer to fun things, and then head back to Tampa to leave. Wife has Aunt who has a place in Sarasota. We may stay there for a day or two as well.
by awizard
Mon Jan 16, 2017 1:33 pm
Forum: Personal Consumer Issues
Topic: Vacationing in Florida (Advice Requested)
Replies: 22
Views: 2856

Re: Vacationing in Florida (Advice Requested)

Great information so far. As for worrying about cold, we are from Northern PA and recently moved from MN. I am sure the weather will feel warm to us.

If we go to Disney my daughter will want to go on the rides, so no sight seeing there. She is a roller coaster girl (when she is tall enough to get on).

A lot of suggestions for things to do around FL, but what about in St. Petersburg? We plan to stay at the Hilton downtown. What is there to see/do with a 5 yr old and any great places to eat?
by awizard
Mon Jan 16, 2017 10:30 am
Forum: Personal Consumer Issues
Topic: Vacationing in Florida (Advice Requested)
Replies: 22
Views: 2856

Vacationing in Florida (Advice Requested)

I have a work conference that will be taking place in St. Peterburg, Florida at the end of February. I am planning to tack on a family vacation in Flordia at this time. We would be flying into the Tampa Bay airport and posssibly renting a car. I would appreciate some input on the following: 1) Attractions / things to do in St Petersburg area for my wife and 5 yr old as I attend the conference (Sun-Wed (noon))? 2) Attractions / things to do within a few hours drive for the remainder of the week (Wed (noon) - Sunday (leave))? I know about the Disney resorts (who doesn't) and I just do not find them attractive for the cost ($366 plus tax for a day for the family just to enter). Maybe I could be persuaded. I think that we would like to hit a be...
by awizard
Fri Jan 13, 2017 9:57 am
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 173
Views: 24939

Re: "Millennials may need to double how much they save for retirement"

This is my favorite part: "Among plan changes BlackRock suggests: higher default rates for employee contributions, requiring employees to contribute more to get the full match, auto enrolling older workers in “catch-up” programs that allow them to save more tax deferred, and making loans and early withdrawals more difficult." So lets put more on the employees. How about suggesting that employers should match to higher amounts or better matching past $1 for $1. You know that the money for a match is not magically appearing, but rather is part of total employee compensation. It is unclear that most millennials will prefer the "hidden" compensation of a higher match vs the more immediately gratifying higher salary? I never...
by awizard
Fri Jan 13, 2017 9:51 am
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 173
Views: 24939

Re: "Millennials may need to double how much they save for retirement"

The other tidbit employers do is make you wait months or even a year before you get any match to your contribution. Matching should start the same day you start to contribute.
by awizard
Fri Jan 13, 2017 9:38 am
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 173
Views: 24939

Re: "Millennials may need to double how much they save for retirement"

This is my favorite part:

"Among plan changes BlackRock suggests: higher default rates for employee contributions, requiring employees to contribute more to get the full match, auto enrolling older workers in “catch-up” programs that allow them to save more tax deferred, and making loans and early withdrawals more difficult."

So lets put more on the employees. How about suggesting that employers should match to higher amounts or better matching past $1 for $1.

Overall, I think it is wise for us young folks to be saving a higher percentage regardless. I think this helps with uncertainty down the road. You can always enjoy the extra cash if it is not needed. However, if you dont have it your screwed.
by awizard
Mon Jan 09, 2017 7:45 am
Forum: Personal Consumer Issues
Topic: What should be our third exercise machine?
Replies: 42
Views: 4023

Re: What should be our third exercise machine?

WaterRower hands down over any bikes or treadmills. I use to be a treadmill guy until stress fractures showed up. Foot doc said that it was time to move onto another piece of exercise equipment that is proven to be less stressful on all joints. He recommended biking or rowing or swimming. I do road biking and always complained that this form of exercise does nothing to work out the upper body. Therefore, I decided to try rowing and I love it. A rowing machine works the vast majority of your bodies muscles (expect for tricepts and abs, which can be hit with some sit-ups and push-ups). You control your workout with a rower. The faster you row, the higher the resistance, and thus the greater the workout. As for back concerns, I have noticed th...
by awizard
Thu Jan 05, 2017 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Medical Complaint + Switching to HDHP for Child Birth Costs?
Replies: 26
Views: 3055

Re: Medical Complaint + Switching to HDHP for Child Birth Costs?

[quote="s0me0nesmind1 The Out-of-Pocket Maximum does include the Annual Deductible. Plan Non-Network $5,700 per Covered Person per calendar year, not to exceed $11,400 for all Covered Persons in a family. Combined with In-Network Out-of-Pocket Maximum. So from the looks of it.... 1) The OOP Max includes the deductible Amount... and.... 2) The Network OOP Max contributes to the In-Network OOP Max and vice versa.... thus even if I pay a $3,700 out of network bill, if everything else is in-network I will owe $0. Does my logic sound correct?[/quote] Awesome on the deductible. Much better than what I have. I would call into your insurance office and get clarification on the word combined. It could be taken either way. Like your OOP in netwo...
by awizard
Thu Jan 05, 2017 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Medical Complaint + Switching to HDHP for Child Birth Costs?
Replies: 26
Views: 3055

Re: Medical Complaint + Switching to HDHP for Child Birth Costs?

Hmmm, in a comparison chart under Out of Pocket Max, it lists the amount for each plan - not once does it distinguish to say Max out of pocket or Total max out of pocket. Regardless, last year under my PPO the deductible did indeed count towards the Max OOP. I am fairly confident that is the same for my HDHP as well. If that is the case then the HDHP looks like the better option. My insurance says something like " Max OOP is $6000 plus deductible " Hence the way I explained it above. Great for you if yours does not. Your HDHP is then way better than what I have access too. And your out of pocket max's are lower than for what most people seem to get on a HDHP plan! as for your original questions: 1) Yes, we had an incident where t...
by awizard
Wed Jan 04, 2017 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Medical Complaint + Switching to HDHP for Child Birth Costs?
Replies: 26
Views: 3055

Re: Medical Complaint + Switching to HDHP for Child Birth Costs?

The insurance company business model is to pay as little as possible in claims while charging as much in premiums as possible. So they invented confusing instruments like co-pays, deductibles, Tier 1, 2, 3 drugs and the infamous in-network and out-of-network buckets. And individual and family deductibles, max out-of-pocket and non-covered items. And then they get to move drugs between tiers in the middle of the year but you can't change plans in the middle of the year. I am with you. The whole in network / out of network buckets are a big scam. To me it is crap, insurance is insurance. IF I am in an accident, get knocked out, and an ambulance takes me to an out of network hospital I can be charged a ton of $$ and have no say. And even if I...
by awizard
Wed Jan 04, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Medical Complaint + Switching to HDHP for Child Birth Costs?
Replies: 26
Views: 3055

Re: Medical Complaint + Switching to HDHP for Child Birth Costs?

OP Cost example: Let's use the example of delivering a child. Let us assume that it costs $10,000 for easy round numbers to use. I will assume that you will pay 20% once deductible is reached, as you did not state your co-insurance rate. Cost to deliver using PPO: $10,000(delivery yay baby is here)-$400 (individual deductable)=$9,600 left that you pay at 20% (which calculates to $1,920) Total cost to you is $1,200 (deductible) + $1,920 (your 20% until you reach the max). = $2,320 total cost to your bottom line ($1,080 left until your reach out of pocket max) Cost to deliver using HDHP: $10,000(delivery yay baby is here)-$2,700 (individual deductable)=$7,300 left that you pay at 20% (which calculates to $1,460) Total cost to you is $2,700 (...
by awizard
Wed Jan 04, 2017 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Medical Complaint + Switching to HDHP for Child Birth Costs?
Replies: 26
Views: 3055

Re: Medical Complaint + Switching to HDHP for Child Birth Costs?

Oh, also forgot to add. When your child is born your family deductibles should not reset. You should just continue paying towards your families OOP. And if like when our child was born, most of the initial appointments (shots, check-ups) were 100% covered irregardless of OOP status as they were considered preventative care.
by awizard
Wed Jan 04, 2017 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Medical Complaint + Switching to HDHP for Child Birth Costs?
Replies: 26
Views: 3055

Re: Medical Complaint + Switching to HDHP for Child Birth Costs?

OP I have been on a HDHP the last few years and recently switched back to a PPO plan. Here is my take and an example of cost difference between PPO and HDHP assuming your paln works like mine did through UHC. 1) It is very typical that you have to fully pay the deductible and then the out of pocket maximum before you stop paying. In your case, you would pay $5,400 to reach your family deductible and then have to pay an additional $7,400 until you reach the family out of pocket maximum for a total cost to you of $11,900. 2) With what is stated in #1. It would make no sense to switch insurances mid-year. You will most likely start your deductibles from ZERO on the new plan! 3) Max out your HSA contributions that are tax free if you can. You w...
by awizard
Mon Dec 05, 2016 8:58 am
Forum: Personal Investments
Topic: Life-changing event just happened. Seeking portfolio review and guidance
Replies: 35
Views: 3980

Re: Life-changing event just happened. Seeking portfolio review and guidance

My sister is going through something similar and she was all panicky as well. She earns about the same income as you do. Please keep in mind that you are earning the median household income for a family of four in the US. Most people get by on much less and have more debt than you do. Actually, you are making more than the median for someone living in Arkansas. Check out the link below. Arkansas's median household income was ~$42K, you are significanlty above this without his income. https://www.advisorperspectives.com/dshort/updates/2016/10/14/median-household-income-by-state-a-new-look-at-the-data Control your spending and start paying off some of those debts starting with the CC. Personally, I would keep all retirement funds for retireme...
by awizard
Mon Dec 05, 2016 8:43 am
Forum: Personal Investments
Topic: Managing kids money
Replies: 30
Views: 3968

Re: Managing kids money

Setup a 529 plan. Send them the codes for adding funds for the childs education. 529 are one of the best, if not the best, place to have funds for a childs future educational expenses that have minimal impact on federal aid. If they are willing to add to a UTMA account, then they should be ameniable to add to a 529. You can remind them that they can write off the funds added to a 529 come tax time. I think you need to be careful and make sure all the pushback comes from your wife to her parents. Let her deliver the message. Also, you should seek more info on complicated investment. I smell lots of hidden fees. You may want to show them how the money will grow in value if placed in 529 plan vs. some complicated structure with high fees. Alwa...
by awizard
Fri Nov 18, 2016 6:43 am
Forum: Personal Investments
Topic: Fidelity Index Fund - need help!
Replies: 14
Views: 2098

Re: Fidelity Index Fund - need help!

livesoft wrote:If it wasn't an index fund, then one might wait, but since it is an index fund, I don't think there is a need to wait. That doesn't mean that I'm right about that.

I was going through the same choice a few weeks ago. I actually called into speak with a Fiedilty broker about this. That person recommended to wait for awhile until moving funds into FTIPX. They recommended that I keep my blend of 15% FSIVX (Fidelity International Index) and 5% FPEMX (Fidelity Emerging Markets Index). So I decided to keep this mix and wait to see how FTIPX does.

Although, I see no reason why FTIPX should have issues. However, I can wait a few months to see how the new fund holds up.
by awizard
Sat Nov 12, 2016 8:19 pm
Forum: Personal Investments
Topic: Pension Help
Replies: 1
Views: 564

Pension Help

All, I have been asked by my sister in law to help her move retirement accounts to her new job. I am fairly comfortable on advising about 401k. However, she has a pension that is fully vested from her old job with an insurance company. When asked, she was uncertain of the companies future and was really concerned about leaving her pension there. She suggested on getting cashed out. Questions: 1) Is there really a concern with leaving pension? What's the risk? 2) How to deal with cash Out? Does this need to be rolled into an IRA? Or is it pure cash that can be added to a brokerage and used to fund a Roth account? 3) what am I missing? What questions should I ask her? I know that I may not be providing enough info for great responses. However...
by awizard
Fri Nov 04, 2016 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Refinance - Appraisal Value is low - Do I continue to refinance?
Replies: 21
Views: 3951

Re: Refinance - Appraisal Value is low - Do I continue to refinance?

Have you actually confirmed with your lender that PMI can be eliminated at 80% loan to equity? My current lender yes. And with my refinance, we discussed eliminating PMI and he said we could do that with a loan balance of $189,600 (80% of proposed appraisal value of $237,000). Hmmm....that is interesting. Every home loan that I received required 78% loan to equity to automatically remove PMI. The PMI could be removed at 80% only if you paid for an apprasal (and then the resulting apprased loan to equity was determined to be 80%). You better make sure you know what the banker is telling you. I diddo tthe posters above. DO NOT get an ARM. Get a fixed rate and as short of term as possible. Well my current lender requires an appraisal if reduc...
by awizard
Fri Nov 04, 2016 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Refinance - Appraisal Value is low - Do I continue to refinance?
Replies: 21
Views: 3951

Re: Refinance - Appraisal Value is low - Do I continue to refinance?

nobodyukno wrote:
Nate79 wrote:Have you actually confirmed with your lender that PMI can be eliminated at 80% loan to equity?
My current lender yes. And with my refinance, we discussed eliminating PMI and he said we could do that with a loan balance of $189,600 (80% of proposed appraisal value of $237,000).

Hmmm....that is interesting. Every home loan that I received required 78% loan to equity to automatically remove PMI. The PMI could be removed at 80% only if you paid for an apprasal (and then the resulting apprased loan to equity was determined to be 80%). You better make sure you know what the banker is telling you.

I diddo tthe posters above. DO NOT get an ARM. Get a fixed rate and as short of term as possible.
by awizard
Thu Nov 03, 2016 3:56 pm
Forum: Personal Investments
Topic: Investing Advice Needed!
Replies: 8
Views: 1321

Re: Investing Advice Needed!

To anyone reading, I just started investing this year. My money is in both Vanguard Total Stock index and Vanguard Total Bond Index (Roughly 80/20 at this point in time). All I hear and see lately is people insisting that the market is due to crash at some point soon, and even more uncertainty around the election in 6 days. I don't have a TON of money invested yet, but I am certainly afraid to lose what I do have in there. I guess im just looking for advice... should I just stay the course? Should I move more to bonds? Should I move some to cash? What are you guys currently doing? First time posting here on this site, so be kind about my noobness. Any insight is greatly appreciated! Thank you. Read the boglehead wiki. Or for a more brutal ...
by awizard
Thu Nov 03, 2016 11:34 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 36863

Re: How to retire early (in your 30s or 40s)?

clutchied wrote:
They're also making some pretty dramatic assumptions about cost of living as well as using government services to subsidize their "retirement."

I have read a few of these blogs and get the same impression. I have 2 thoughts on the use of government to subsidize someone who have a huge nestegg, receives dividends and has overall low or no earnings:

1) They are really financially savey and are using everything at their disposal. Kuddos to them and I would do it if in their shoes.

2) I find it fiscally reprehensible that someone who has such a large some of money should be allow to take advantage of these programs through gaming of the system.
by awizard
Thu Nov 03, 2016 11:00 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 36863

Re: How to retire early (in your 30s or 40s)?

MMM seems to focus more on the consumption side. Don't buy a clown car (SUV) because they're big, stupid and un-necessary (I own a Wrangler Unlimited, so I point at myself as breaking this rule). Live below your means. Bike instead of drive. Don't buy crap you don't need. Like many, I don't buy his whole thing. He quit his job and started building houses. So if I were a carpenter building houses, would I retire from that and write software and then call that retirement? He likes investing in rentals. My dad invested in rentals and I saw how much work it was and once I turned 16 and started working at after school and summer jobs, my dad would borrow money from me all the time (he always paid it back). As a result, I'm violently opposed to ...
by awizard
Thu Nov 03, 2016 10:56 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 36863

Re: How to retire early (in your 30s or 40s)?

smegal wrote:You can access 401k/403b via what's called a Roth conversion ladder. A comparison to 72t here:

http://www.madfientist.com/how-to-acces ... nds-early/

I am not affiliated with site.

Never heard of this rule. Will have to read up on 72t.
by awizard
Thu Nov 03, 2016 9:55 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 36863

Re: How to retire early (in your 30s, 40s, 50s)?

I'm trying to retire early. My approach is similar to magicrat's description of maxing tax advantaged space and spilling all extra into a taxable investment account. On top of that, I don't intend to have a $0 income stream in the years up to 59 1/2. The thread you referenced had a ton of discussion about this, but I imagine I will be doing odd jobs here and there to generate a little bit of cash, both to keep my sanity in check and to reduce the draw down on my taxable investments. This is all speculation, since I have several years before I can actually consider early retirement a realistic option. I get what you are saying. However, all the funds in tax advantage are "locked up" until 59 1/2. The only solution I see is to have...
by awizard
Thu Nov 03, 2016 9:51 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 36863

Re: How to retire early (in your 30s, 40s, 50s)?

Agree with magicrat. Also, your parenthetical (30s, 40s, 50s) is mixing apples and oranges, IMHO. We will be retiring "early" next year, but in mid-50s, so not really early. If we lacked sufficient after-tax savings, we could tap our 401ks, as both of us will be over age 55. If we were 50, or younger, would have to rely up S.E.P. withdrawals, or Roth laddering to make up for any shortfall in taxable accounts. If we had wanted to retire in our 30s (or retire "well" in our 40s), we would have chosen different professions so that we started making real money at earlier ages. (E.T.A.--or we could have foregone having children!) I changed the title of the post to just 30s or 40s. I want this to focus on people who retire way...
by awizard
Thu Nov 03, 2016 9:49 am
Forum: Personal Investments
Topic: Repositioning portfolio
Replies: 10
Views: 1816

Re: Repositioning portfolio

dishwasher22 wrote:Apologies for all the questions - but would people also look to move away from FBIDX? My major concern is that the turnover rate is very high.

I just looked at VBMFX Vanguard Total Bond Market Index Fund Investor Shares. Their prospectus states that their turnover rate was 84% last year. I think that a lot of these total bond funds have high turnover due to the short maturity bonds that they are holding. I do not think that this is a bad thing when/if the bond market increases in price.
by awizard
Thu Nov 03, 2016 9:37 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 36863

How to retire early (in your 30s or 40s)?

There is another thread titled "Did you retire in you 30s?" This got me thinking on how can someone actually retire early? In general, we focus on this forum that one should first fill the 401K buckets, then the roth buckets, then taxable etc. However, it seems to me that all your savings are then tied up in investmes cannot be accessed until 59 1/2 without some kind of penalty. Blogs like MMM seem to make their living through rentals + investment income. However, I have yet to read how they accessed their investment income (I am assuming that they put everything into taxable and IRA would be IMO untouchable until later in life). Here are the questions: 1) I am missing something? Can someone access 401Ks, IRAs early without penalt...
by awizard
Wed Nov 02, 2016 10:24 am
Forum: Personal Investments
Topic: Repositioning portfolio
Replies: 10
Views: 1816

Re: Repositioning portfolio

Here are the Fidelity Funds that I use with expense ratios: Fidelity Emerging Markets Index Inverstor CL(FPEMX) (0.300) Fidelity Total MKT Index Premium CL (FSTVX) (0.045) Fidelity Real Estate Index Premium CL (FSRVX) (0.090) Fidelity Internatl Index Premium CL (FSIVX) (0.080) Fidelity US Bond Index Premium CL (FSITX) (0.050) I use the FPEMX and FSIVX vs. FTIPX due to the fact that FTIPX is a brand new fund (inception is June of this year). The other funds are older and have established fund managers. I also discussed this with a Fidelity Rep. The Rep stated that FTIPX doesn't seem to replace the growth potential of FPEMX (I.E. FPEMX is riskier with higher growth). Overall it looks good. Also, I couldnt find FBISC - Spartan US Bond Index. I...
by awizard
Thu Oct 27, 2016 6:32 am
Forum: Personal Investments
Topic: Portfolio Simplification to Boglehead Style Investing
Replies: 6
Views: 1235

Re: Portfolio Simplification to Boglehead Style Investing

Questions: 1. I am thinking that I would like to reduce all holdings to a more simple 3 fund portfolio model (US/Int'l/Bonds). New proposed portfolio would consist of: 10% bonds 25% Int'l stocks 65% US stocks Thoughts on this ratio? I consider myself more aggresive, however wife is more conservative. Thoughts on how to alter accounts to reach said stated goal. I would suggest 20% bonds, 20% international and 60% domestic stocks, so you are very close and probably within the range of what is reasonable. Thank you for the input. 2. A few thoughts on the above. There are some individual stocks in various accounts. These are earmarked to be sold and folded into appropriate index funds. The large portion of 3M stock is from a previous GESPP and...
by awizard
Wed Oct 26, 2016 2:42 pm
Forum: Personal Investments
Topic: Portfolio Simplification to Boglehead Style Investing
Replies: 6
Views: 1235

Portfolio Simplification to Boglehead Style Investing

Every since getting our first jobs (2007 for wife and 2010 for myself) my wife and I have focused on eliminating debt (cars, student loans etc.) and trying to understand the investing world (moreso myself as wife is not as interested in the investment world). Over the years we had some learning lessons on high cost funds with hidden fees, picking individual stocks and folly of market timing. Recently, I had a health issue that reminded me that we are all very mortal. I think that this reminder happens to us all, maybe sooner for myself. That stated, it reminded me that our retirement investments need to be simplified to the point where even my wife could take over, god forbid, in the event that I am no longer around. Here is the required in...
by awizard
Tue Oct 18, 2016 11:21 am
Forum: Personal Consumer Issues
Topic: Chicago recommendations
Replies: 40
Views: 3682

Re: Chicago recommendations

To OP: We just visited Chicago this past spring. Here is what we did. Travel to Downtown: My wife, 4 year old and I flew into ORD and took the Blue line down to the loop. We had a stroller and several luggage. We got off at Clark and Lake (if memory serves me correctly) and then walked to the Sheraton Grand Chicago. It was not bad. I will agree with some of the posters that getting out of the subway system was the hardest part. Although, the subway staff was very helpful and gracious at allowing us to go through security doors vs. the turnstyles (It was obvious that we were tourists). One point, if you take subway make sure you are ready to get on and off very rapidly. The doors do not stay open long (think a few tens of seconds) and it mak...