Search found 1815 matches

by petulant
Wed Sep 23, 2020 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Bad Finance to put 20% down on House
Replies: 19
Views: 2489

Re: Bad Finance to put 20% down on House

As grabiner pointed out, PMI is often a flat amount no matter how much LTV actually goes down before PMI drops off. Here's a quote from a Bankrate article on PMI, emphasis added: The average annual PMI premium typically ranges from .55 percent to 2.25 percent of the original loan amount each year, a...
by petulant
Sun Sep 20, 2020 11:17 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

(...) Could you explain what you mean by "A/B cap weighted allocation for all country A investors"? Do you just mean that, on average, country A investors might be 80% country A and 20% country B, even though the overall market caps might be the same at 50% each? One could do that, but understand i...
by petulant
Sun Sep 20, 2020 9:32 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

Isn't deviating away from that (to global market cap allocations, for instance) an implicit assertion that you can price things better than the market? No. At most it’s as assertion that you know your own financial situation better than a stranger does. “The market” is merely a collection of other ...
by petulant
Sun Sep 20, 2020 9:07 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

Isn't deviating away from that (to global market cap allocations, for instance) an implicit assertion that you can price things better than the market? No. At most it’s as assertion that you know your own financial situation better than a stranger does. “The market” is merely a collection of other ...
by petulant
Sun Sep 20, 2020 9:01 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

Edit: According to a poster in this thread https://www.bogleheads.org/forum/viewtopic.php?t=299607 the average amount withheld in VTIAX by foreign governments is about 7%. If the average dividend yield over the past decade is about 3.2% and that approximate 7% figure is correct, then the drag from ...
by petulant
Sun Sep 20, 2020 8:41 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

The academic literature suggests dividend withholding taxes are a real drain on foreign equity investments. Generally, foreign countries withhold more than 15% of the dividends, the U.S. allows a foreign tax credit claim of 15%, and the investor then has to make a claim in the foreign county for a ...
by petulant
Sun Sep 20, 2020 8:35 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

Edit: According to a poster in this thread https://www.bogleheads.org/forum/viewtopic.php?t=299607 the average amount withheld in VTIAX by foreign governments is about 7%. If the average dividend yield over the past decade is about 3.2% and that approximate 7% figure is correct, then the drag from ...
by petulant
Sun Sep 20, 2020 8:28 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

But look at the Swiss entry. It shows a 35% general withholding rate and 15% treaty withholding rate. The KPMG report says that you have to get a refund from Switzerland for the difference between 35% and 15%. So it works like this. Nestle pays $1 in dividends. Swiss government withholds $.35. U.S....
by petulant
Sat Sep 19, 2020 7:11 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

I'm not clear on the treaty issue but my basic understanding from coming to this blind and reading it for the first time is that the [international law] treaty gets the withholding tax down to 10% (In China's case) and then the US [domestic law] allows an investor to claim a maximum 15% tax credit ...
by petulant
Fri Sep 18, 2020 8:13 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

The problem to me is that this is an average and does not reflect specific countries. I also spitballed the average. Some countries, potentially many, are withholding higher percentages, so we're supposed to file for refunds to get those back. One paper I saw said that Germany withholds an effectiv...
by petulant
Fri Sep 18, 2020 6:25 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

The problem to me is that this is an average and does not reflect specific countries. I also spitballed the average. Some countries, potentially many, are withholding higher percentages, so we're supposed to file for refunds to get those back. One paper I saw said that Germany withholds an effectiv...
by petulant
Thu Sep 17, 2020 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: New York Life - Invest as Favor for Friend
Replies: 40
Views: 1985

Re: New York Life - Invest as Favor for Friend

Thanks, all, for your insights. It's a tough situation, and I worry about being 'in for a penny, in for a pound.' I was hoping there might be something analogous to a 2-year CD that I could purchase, hold, and collect in 2 years (and hope he finds a better gig in the interim). But I'm sure the fees...
by petulant
Thu Sep 17, 2020 10:29 am
Forum: Personal Investments
Topic: No 401K with Current Employer - Looking for Tax Deferral Options
Replies: 2
Views: 166

Re: No 401K with Current Employer - Looking for Tax Deferral Options

You may be able to make a deductible spousal IRA contribution. Please review the eligibility for that contribution and/or consult your accountant.
by petulant
Wed Sep 16, 2020 4:19 pm
Forum: Investing - Theory, News & General
Topic: Are retail investors driving the market? But I thought 10 percent richest own 90% of market?
Replies: 36
Views: 3842

Re: Are retail investors driving the market? But I thought 10 percent richest own 90% of market?

The price is based on the last transaction. Only a single share is necessary to "move the market." Obviously in reality if a single trade were too high or low it would spark a response. But it's certainly possible for a small portion of the total market to drive the recent prices.
by petulant
Wed Sep 16, 2020 1:04 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

The academic literature suggests dividend withholding taxes are a real drain on foreign equity investments. Generally, foreign countries withhold more than 15% of the dividends, the U.S. allows a foreign tax credit claim of 15%, and the investor then has to make a claim in the foreign county for a ...
by petulant
Wed Sep 16, 2020 11:38 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

I'm not attempting to derail this lively discussion, but I have a question. The policy statements for both Vanguard Wellesley and Vanguard Wellington say they can invest up to 25% of assets in foreign securities, yet Wellesley has only about 10% non-US equities (according to Morningstar), and Welli...
by petulant
Wed Sep 16, 2020 10:37 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

What I'm saying is that the literature has models that show foreign diversification has different impacts on your pocket book depending on how they measure the impact. So there is not a clear answer. For example, let's say you combine your portfolio performance with what you actually buy. If the US...
by petulant
Wed Sep 16, 2020 9:26 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

...I spent quite a while reviewing SSRN and other materials and found that inclusion of currency in CAPM made many conclusions unclear. Here are some passages from one my favorite papers, which was posted on SSRN this year: Lucas (1982) investigates a two-country endowment economy . . . [and conclu...
by petulant
Wed Sep 16, 2020 5:59 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

The academic literature suggests dividend withholding taxes are a real drain on foreign equity investments. Generally, foreign countries withhold more than 15% of the dividends, the U.S. allows a foreign tax credit claim of 15%, and the investor then has to make a claim in the foreign county for a ...
by petulant
Tue Sep 15, 2020 6:34 pm
Forum: Personal Investments
Topic: Struggling Over whether to Sell my Tesla Stock
Replies: 42
Views: 2971

Re: Struggling Over whether to Sell my Tesla Stock

Maybe the plan is for all the Robinhood people to take out margin loans against their newfound wealth to buy Tesla cars, creating the profitability that keeps their investment intact. Will it work? Don't know.
by petulant
Tue Sep 15, 2020 6:13 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

The real arguments are around tax drag & foreign exchange risk (against) v diversification (for). Instead we wind up discussing Chinese and Italian demographics. Is it known how much on average these factors (tax drag, currency risk) have brought down ex-US returns? Any good way to estimate this? S...
by petulant
Tue Sep 15, 2020 5:12 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Wrong. This is not an annuity. This is VUL, which is clear from the thread. You are correct. I was comparing withdrawals from the taxable account to the wrong product. My apologies. Premiums can be removed from the VUL tax-free The original money in a taxable account is tax-free when you pull it ou...
by petulant
Tue Sep 15, 2020 4:00 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

The real arguments are around tax drag & foreign exchange risk (against) v diversification (for). Instead we wind up discussing Chinese and Italian demographics. Is it known how much on average these factors (tax drag, currency risk) have brought down ex-US returns? Any good way to estimate this? S...
by petulant
Tue Sep 15, 2020 3:38 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Math is wrong. After 30 years with the taxable investment, assuming composition of returns is 2% dividend and 5% capital gains, the investor would actually have $558650. You left out the capital gains. The OP is talking about aftertax returns. You have to include capital gains tax. Why are you bein...
by petulant
Tue Sep 15, 2020 1:59 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Math is wrong. After 30 years with the taxable investment, assuming composition of returns is 2% dividend and 5% capital gains, the investor would actually have $558650. You left out the capital gains. The OP is talking about aftertax returns. You have to include capital gains tax. Why are you bein...
by petulant
Tue Sep 15, 2020 1:57 pm
Forum: Personal Investments
Topic: Whole Life Insurance vs. Investing
Replies: 7
Views: 521

Re: Whole Life Insurance vs. Investing

If you can provide an illustration, plus your targeted asset mix and your thoughts on returns on your asset mix, a comparison can be prepared. To the extent that you include equities in your asset mix, and that you assume that equities outperform fixed income over time, the “buy term and invest the...
by petulant
Tue Sep 15, 2020 12:43 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Please only respond if you have looked into a variable universal policy from a reputable company like Northwest Mutual and properly understood the tax benefits of it...I am looking for what I am missing/not thinking of... It seems pretty straight forward 1) Yes, there is a commission involved and y...
by petulant
Tue Sep 15, 2020 12:40 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

The math is pretty simple - the after tax returns are better because the tax savings are greater than cost of insurance and commissions. It’s a win win. If the math is simple, then buy it. How many pages in that NW prospectus? Did you see the part about 2% + 0.55% + 6.95% charges on each Premium pa...
by petulant
Tue Sep 15, 2020 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Universal Life Insurance Keep or Cash Out
Replies: 20
Views: 1112

Re: Universal Life Insurance Keep or Cash Out

Numbers say keep, complexity says don't. Maybe have parents transfer it to you and you max fund it until you need the money for something and break open the piggy bank at that time.
by petulant
Mon Sep 14, 2020 9:32 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

https://www.prudential.com/personal/life-insurance/variable-life-insurance-performance/vul-protector-2018-prospectus/ Looking at that prospectus, it does appear you're not going to get the S&P 500 returns. It's not JUST a 0.19% expense ratio vs a 0.04% expense ratio (from Vanguard) Sales Charge On ...
by petulant
Mon Sep 14, 2020 6:46 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Please show a policy with 0 cost loans guaranteed. Also as I mentioned there are several other costs not guarausuch as cost of the investments, which investments will remain available and the cost of insurance illustrated is not the guaranteed cost for insurance. Maybe you are hoping that the total...
by petulant
Mon Sep 14, 2020 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Should I surrender my kids' insurance policies?
Replies: 13
Views: 1131

Re: Should I surrender my kids' insurance policies?

The problem is that keeping these policies is now much less of a problem than taking them out in the first place. Most VUL policies have 10-20 year periods of high costs that end, resulting in a modest annual administrative charge around $100 per year along with an asset ratio for most policies. Kee...
by petulant
Mon Sep 14, 2020 6:23 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

Sometimes I wonder if international-leery folks might take a stab at international if there was a fund like VT, but 1) had a much smaller international allocation, and 2) the international allocation was megacaps, companies whose revenue sources more closely resembled US megacaps'. Just compare San...
by petulant
Mon Sep 14, 2020 6:22 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

You note the dramatic tax benefits of the VUL policy, but remember it's a cost-benefit analysis. There are also dramatic costs: the insurance itself, which you might be able to take out if you would have purchased insurance anyway, but the "commissions" and other expenses are significant. They incl...
by petulant
Mon Sep 14, 2020 6:21 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

It is definitely not guaranteed for tax savings to be greater than costs. It rarely is which is why you don’t see non insurance folks recommending it. I wouldn’t be surprised if they illustrated it working out. There was an article written by insurance industry experts you might want to look at. Si...
by petulant
Mon Sep 14, 2020 4:27 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

You're talking about a different product. That is one of the big problems with insurance products; there are a lot of variations. OP is talking about variable universal life policies, which really do break out all costs (much more clearly than annuities) and otherwise hold what is more or less a re...
by petulant
Mon Sep 14, 2020 4:24 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

Sometimes I wonder if international-leery folks might take a stab at international if there was a fund like VT, but 1) had a much smaller international allocation, and 2) the international allocation was megacaps, companies whose revenue sources more closely resembled US megacaps'. Just compare San...
by petulant
Mon Sep 14, 2020 4:23 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 10475

Re: Reasons to invest internationally, or not.

The articles are not good, particularly the one in favor of investing domestically. The issues discussed in the pro-home-bias article are ones that can be entirely priced in among all international investors. With a P/E ratio of 22.35 in the U.S. compared to 16.45 in developed ex-US markets, there i...
by petulant
Mon Sep 14, 2020 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life retained cash with 3.5% gross?
Replies: 2
Views: 277

Re: Whole life retained cash with 3.5% gross?

For 2019 many of the large mutual insurance companies reported about 3.7% return on assets. Their portfolios are about 80-85% investment grade bonds, 5% high yield bonds, 5-10% policy loans, and 5-10% equities or real estate. They also typically do the calculations on a historical cost basis, so if ...
by petulant
Mon Sep 14, 2020 3:55 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Please only respond if you have looked into a variable universal policy from a reputable company like Northwest Mutual and properly understood the tax benefits of it...I am looking for what I am missing/not thinking of... It seems pretty straight forward 1) Yes, there is a commission involved and y...
by petulant
Mon Sep 14, 2020 3:53 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4430

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

You note the dramatic tax benefits of the VUL policy, but remember it's a cost-benefit analysis. There are also dramatic costs: the insurance itself, which you might be able to take out if you would have purchased insurance anyway, but the "commissions" and other expenses are significant. They inclu...
by petulant
Sat Sep 12, 2020 9:34 pm
Forum: Investing - Theory, News & General
Topic: I want to verify if FXNAX is the Fidelity Equivalent of Vanguard's VBTLX
Replies: 18
Views: 1173

Re: I want to verify if FXNAX is the Fidelity Equivalent of Vanguard's VBTLX

fwiw Here's a comparison from Fidelity https://fundresearch.fidelity.com/fund-screener/results/compare/snapshot/averageAnnualReturnsYear3/desc/1?order=tickers&tickers=FXNAX%2CVBTLX It's interesting that despite being nearly identical and Fidelity having a slightly lower expense, Morningstar gives V...
by petulant
Sat Sep 12, 2020 6:47 pm
Forum: Personal Investments
Topic: Ally Bank Not Reliable
Replies: 50
Views: 4872

Re: Ally Bank Not Reliable

As of Q2 2020 they have "total retail deposit customers of 2.1 million, up 94 thousand QoQ and up 14% YoY". Hmmm no so large. Ally is the 16th largest bank with 180 billion in assets, they are huge. https://www.federalreserve.gov/releases/lbr/current/ 173 billion actually from your link. And JPM Ch...
by petulant
Sat Sep 12, 2020 6:43 pm
Forum: Investing - Theory, News & General
Topic: Questions to ask a prospective financial advisor
Replies: 112
Views: 4695

Re: Questions to ask a prospective financial advisor

Tell him to ask the advisor to pick an index (or a fund that mimics your friends asset allocation), and allow your friend to pay him 10% of whatever he beats the index by. Even on down years, if the advisor beats the index, your friend still pays. But if the advisor does not beat the index, he gets...
by petulant
Sat Sep 12, 2020 6:41 pm
Forum: Personal Investments
Topic: Ally Bank Not Reliable
Replies: 50
Views: 4872

Re: Ally Bank Not Reliable

I would expect more internet chatter about it because it's one of the country's largest, if not the largest, online banks. It has no local customer service people to complain with. People will turn to the internet at a way higher rate than with BOFA, even if Ally has more problems. I would be frust...
by petulant
Sat Sep 12, 2020 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Hawaii state tax- too good to be true
Replies: 44
Views: 5326

Re: Hawaii state tax- too good to be true

Many states have favorable treatment of retirement income. It is not surprising.
by petulant
Sat Sep 12, 2020 4:46 pm
Forum: Personal Investments
Topic: Buy SPIA with IRA money or Taxable Acct Money?
Replies: 14
Views: 1021

Re: Buy SPIA with IRA money or Taxable Acct Money?

The point favoring the tIRA is that these funds will be driving RMDs whether or not you annuitize them. The SPIA just makes the RMDs uniform over time. The fact that tax brackets are indexed to inflation provides some limited inflation protection to a fixed payout SPIA-- more if located in a tIRA t...
by petulant
Sat Sep 12, 2020 1:40 pm
Forum: Personal Investments
Topic: Ally Bank Not Reliable
Replies: 50
Views: 4872

Re: Ally Bank Not Reliable

I would expect more internet chatter about it because it's one of the country's largest, if not the largest, online banks. It has no local customer service people to complain with. People will turn to the internet at a way higher rate than with BOFA, even if Ally has more problems. I would be frustr...
by petulant
Sat Sep 12, 2020 1:37 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 19177

Re: Anyone successfully living off dividends & interest?

I'm a few years out from retirement and am exploring a bunch of different portfolio strategies. I won't have enough money to just dump it in a bond fund (unless it's some volatile CEF) and "live off the interest" like our grandparents did. I've run the numbers every which way and in this low-intere...
by petulant
Sat Sep 12, 2020 12:23 pm
Forum: Personal Investments
Topic: Father has 300k+ as a 68 year old. What investing strategy would you advise?
Replies: 33
Views: 4417

Re: Father has 300k+ as a 68 year old. What investing strategy would you advise?

Why was OP not happy with the previous thread about Shariah complaint bond alternatives?

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