Search found 426 matches

by John Laurens
Sat Apr 20, 2019 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Where do you keep your emergency fund?
Replies: 62
Views: 6281

Re: Where do you keep your emergency fund?

I have my checking, emergency fund, quarterly tax fund, big purchase fund in FZDXX at Fidelity.

Regards,
John
by John Laurens
Wed Apr 10, 2019 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

... If a 10 year SPIA was issued for all four or a 10 year trust payout occurred, what are the tax implications? Pondering it a bit more, here's my thinking. For an SPIA paid for out of taxable funds, the payout is mostly return of capital and a small amount is earnings. The capital has already bee...
by John Laurens
Wed Apr 10, 2019 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

Sorry about that. I have only made a couple of new topic posts.

Regards,
John
by John Laurens
Wed Apr 10, 2019 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

I was curious about how an SPIA payout compared to a trust so I did some quick calcs in Excel. Assuming a 10-year time frame for both and a modest return on the trust holdings, it looks like they come out about even. A 10-year certain SPIA has a payout of 11.34% as quoted for a 54-year old male. I ...
by John Laurens
Wed Apr 10, 2019 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

I have suggested that she should see an attorney to draft a revocable trust and express those wishes. I have suggested that she make my wife the trustee so I/we can continue managing the investments at Vanguard. You should know that taxes on a trust can be brutal. The longer the trust lasts, the mo...
by John Laurens
Wed Apr 10, 2019 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

I don't have an expertise to offer, but kudos to your MIL. Obviously she is a smart cookie to identify the problems, and strong enough to do something about it. :beer In truth, the two who have money management issues can easily put 25 or 50k on credit cards knowing they they'll be getting the lump...
by John Laurens
Wed Apr 10, 2019 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

For a period of less than ten years, my opinion is that the funds for estate distribution should be invested very conservatively - perhaps only in short term high quality bonds or bond funds or in CDs. As the spouse of the Executor (or equivalent) - I would advise against managing the funds. Sounds...
by John Laurens
Wed Apr 10, 2019 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

Dale_G wrote:
Wed Apr 10, 2019 11:22 am
Note: The OP stated that all beneficiaries would receive the payout over 10 years.

It sounds like a good plan John. I would lean to a LifeStrategy fund of your choice.

Dale
That is correct. I have advised her to treat all children the same in terms of receiving funds.

Regards
John
by John Laurens
Wed Apr 10, 2019 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

ohai wrote:
Wed Apr 10, 2019 10:44 am
I'm pretty sure Vanguard itself offers trustee services. It's probably worth checking their rates. If you end up paying like $10k out of that $1.1 million, so what.
Just so I understand, Vanguard can provide trustee services without managing the investments?

Regards,
John
by John Laurens
Wed Apr 10, 2019 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Re: Estate Planning for Mother in Law

If it were me, I'd find an independent trustee. It doesn't seem like there is upside and only downside with respect to family relationships if something were to go wrong - either in reality or perceived. That is definitely a valid point to consider. I would assume a third party trustee would charge...
by John Laurens
Wed Apr 10, 2019 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1903

Estate Planning for Mother in Law

Hi Bogleheads, I need some estate planning advice for my mother in law. My MIL is single 74 y/o has a home worth 200k and investments of 1.1 million between a taxable account (majority of the funds), rollover IRA, and a Roth IRA. I have managed her investments over the last 12 years or so. This has ...
by John Laurens
Fri Apr 05, 2019 9:12 pm
Forum: Personal Investments
Topic: Strategy in SEP IRA
Replies: 6
Views: 417

Re: Strategy in SEP IRA

I appreciate your advice! Indeed, "Fidelity Freedom® Index 2030 Investor" is great choice. You also suggest adding "Fidelity® US Bond Index Premium." Would you mind to explain the reasons to add the bond fund? And what the allocation should be for the 45k? Lastly, what does "Fido Target Retirement ...
by John Laurens
Tue Apr 02, 2019 9:35 am
Forum: Investing - Theory, News & General
Topic: Are annuities the best way to fund one's retirement?
Replies: 190
Views: 10283

Re: Are annuities the best way to fund one's retirement?

There is no free lunch. One can not transfer risk without accepting lower returns. Total return is what matters. If you are susceptible to behavioral mistakes then a SPIA is reasonable.

Regards,
John
by John Laurens
Fri Mar 29, 2019 12:51 pm
Forum: Personal Investments
Topic: Mortgage as negative bond = YIKES! Should I panic?
Replies: 37
Views: 3251

Re: Mortgage as negative bond = YIKES! Should I panic?

Not necessarily. When you retire in 5 years, will you receive a pension or be able to add significantly to your retirement accounts? The reason your "negative bond" numbers look that way is your home seems to be a very significant portion of your net worth.

Regards,
John
by John Laurens
Sat Mar 23, 2019 2:02 pm
Forum: Personal Investments
Topic: At which point do you sell index funds/stocks and take a profit?
Replies: 22
Views: 1960

Re: At which point do you sell index funds/stocks and take a profit?

sport wrote:
Sat Mar 23, 2019 1:56 pm
Jesteroftheswamp wrote:
Sat Mar 23, 2019 1:50 pm
I’m not about market timing
Jesteroftheswamp wrote:
Sat Mar 23, 2019 1:50 pm
what circumstances would create a favorable opportunity to sell?
These two statements seem to be contradictory. IMO, there are two times to sell.
1. When you need the money.
2. When you need to rebalance.
+1
by John Laurens
Thu Mar 21, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: 60 YOs ask a BH for advice - 200K+ student loan debt, and more...
Replies: 66
Views: 4392

Re: 60 YOs ask a BH for advice - 200K+ student loan debt, and more...

Goodness. This is why student loans need to be privatized. But to make my advice actionable, Stop going to school immediately.

Regards,
John
by John Laurens
Sun Mar 10, 2019 7:29 pm
Forum: Personal Investments
Topic: Investing large sum, wait or buy?
Replies: 14
Views: 1374

Re: Investing large sum, wait or buy?

If there is decline from current prices, you should invest at the nadir. If today’s prices are the lowest they will ever be going forward, you should invest all of it now. If you will admit to yourself that you don’t know what prices will do in the short term and neither does anyone else, you should...
by John Laurens
Thu Mar 07, 2019 11:18 am
Forum: Personal Investments
Topic: Most NON obvious thing for new investors
Replies: 58
Views: 7359

Re: Most NON obvious thing for new investors

The thing I see over and over here on Bogleheads for new/ young investors...they are more concerned with the value of their accounts now rather than where they want to be 30-40 years from now.

Regards,
John
by John Laurens
Tue Mar 05, 2019 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a more expensive home? And is it wise?
Replies: 35
Views: 2561

Re: Can we afford a more expensive home? And is it wise?

A lot depends on the salary breakdown between your wife and you. Buying this house locks her into working outside the home. Having a child changes priorities. This house severely limits your options. Women can have health problems during and after pregnancy that could force her out of workforce. Chi...
by John Laurens
Sun Mar 03, 2019 3:31 pm
Forum: Personal Investments
Topic: Starting over at 28 and need a plan going forward
Replies: 23
Views: 2942

Re: Starting over at 28 and need a plan going forward

I don’t see how anyone can be “too debt averse”. I’m debt free best thing I’ve ever done. It allows me to take other risks in my business. Your net worth at age 28 probably puts you in the the top 1% of 28 year olds. Most have a negative net worth. Stay a Boglehead and you won’t believe where you wi...
by John Laurens
Sat Mar 02, 2019 7:39 pm
Forum: Personal Investments
Topic: Lots of cash .. Scared to put it to work now
Replies: 207
Views: 17715

Re: Lots of cash .. Scared to put it to work now

All of the high cash allocation market timing questions we get, the OP is always more concerned about their present net worth and not where they want to be at some point in the future. I think this natural but not helpful. First, define your goals. It may be that 100% cash will meet your goals. I w...
by John Laurens
Sat Mar 02, 2019 7:19 pm
Forum: Personal Investments
Topic: Lots of cash .. Scared to put it to work now
Replies: 207
Views: 17715

Re: Lots of cash .. Scared to put it to work now

All of the high cash allocation market timing questions we get, the OP is always more concerned about their present net worth and not where they want to be at some point in the future. I think this natural but not helpful. First, define your goals. It may be that 100% cash will meet your goals. I wo...
by John Laurens
Mon Feb 25, 2019 9:58 pm
Forum: Personal Investments
Topic: Need help grading my "Fee Only" provider
Replies: 44
Views: 3157

Re: Need help grading my "Fee Only" provider

I grade him as an A+ for constructing such a complex portfolio that would make the average person never believe they could manage their own portfolio, making it prohibitively difficult to unwind this monstrosity, making it difficult to compare your returns to benchmarks, and most importantly leading...
by John Laurens
Mon Feb 25, 2019 7:46 pm
Forum: Investing - Theory, News & General
Topic: "Warren Buffett says if you invested $10,000 in the S&P 500 in 1942, you'd have $51 million today"
Replies: 110
Views: 7388

Re: "Warren Buffett says if you invested $10,000 in the S&P 500 in 1942, you'd have $51 million today"

For all those posting “that’s 154k in today’s dollars”, it seems every other day someone is posting “I have 100k+ sitting in cash. Should I wait for the inevitable market crash”.

Regards,
John
by John Laurens
Sat Feb 23, 2019 7:47 pm
Forum: Personal Investments
Topic: bitcoin guy wants to stock market
Replies: 234
Views: 12325

Re: bitcoin guy wants to stock market

Bizarre that your living expenses are $450 dollars per month and you want to get them lower yet you are considering paying much more than that per month for an advisor. fair point. i'm not willing to pay alot for an adviser. i was considering those guys for 1 to 1.5%, but they aren't gonna get my m...
by John Laurens
Sat Feb 23, 2019 7:11 pm
Forum: Personal Investments
Topic: bitcoin guy wants to stock market
Replies: 234
Views: 12325

Re: bitcoin guy wants to stock market

Bizarre that your living expenses are $450 dollars per month and you want to get them lower yet you are considering paying much more than that per month for an advisor.

Not having health insurance with your assets is crazy.

Regards,
John
by John Laurens
Sun Feb 17, 2019 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Easiest Way to Give $100k Cash to Non-Family Member
Replies: 62
Views: 5226

Re: Easiest Way to Give $100k Cash to Non-Family Member

The recipients would know about the gift, however, we prefer to keep it confidential from other parties. So I should have said confidential, not anonymous. Having just read another thread on senior citizens getting ripped off the confidentiality here has me bothered. Very generous of the OP. I find...
by John Laurens
Wed Feb 13, 2019 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Repayment Puzzle
Replies: 22
Views: 1481

Re: Student Loan Repayment Puzzle

If he is going to pay a “set monthly amount”, he should pay the highest interest rate first. There have been studies that state paying off the lowest balance debt first results in a positive behavioral benefit that results in getting out of debt faster. He may even decide that after paying off the l...
by John Laurens
Wed Feb 13, 2019 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a 2019 RAV4 hybrid - how to pay for it?
Replies: 76
Views: 3824

Re: Buying a 2019 RAV4 hybrid - how to pay for it?

Putting that many miles on a vehicle, I wouldn’t buy a new car. I also wouldn’t buy a car unless I paid cash.

Regards,
John
by John Laurens
Tue Feb 12, 2019 4:26 pm
Forum: Personal Investments
Topic: Best Money Market in Fidelity Roth IRA? SPRXX/ SHV/SHY/SUB
Replies: 9
Views: 641

Re: Best Money Market in Fidelity Roth IRA? SPRXX/ SHV/SHY/SUB

I find it odd that you want to hold cash in your Roth IRA? Prevailing wisdom is to hold your highest growth investments in this space. I can’t determine if you are trying to market time or have some other rationale? Edit: sorry, looked back at a one of your posts regarding your 2019 IPS. Yes, you ar...
by John Laurens
Tue Feb 12, 2019 12:09 am
Forum: Personal Investments
Topic: Roth Advantage not discussed?
Replies: 26
Views: 2004

Re: Roth Advantage not discussed?

I don’t know? What did the person do with the upfront tax savings from the pre-tax 401k contribution? Did they fund their HSA, Backdoor Roth, taxable investment account, 529, prepay their mortgage, or pay off other debts? Or did they just blow it on a boat payment?

Regards,
John
by John Laurens
Sat Feb 09, 2019 8:24 am
Forum: Personal Investments
Topic: How To Invest Now and Best Limit Risk of Big Recession Loss
Replies: 19
Views: 2118

Re: How To Invest Now and Best Limit Risk of Big Recession Loss

Before we can help, how is your situation different than someone who has invested a couple thousand a month over a long period of time and now has 1MM+ invested? Would they not experience the exact same “loss” during a recession as you? You have a financial behavioral problem to work out. I would co...
by John Laurens
Thu Feb 07, 2019 2:49 pm
Forum: Personal Investments
Topic: Is the VPAS Service worth the 0.30%?
Replies: 32
Views: 2361

Re: Is the VPAS Service worth the 0.30%?

I’m assuming that you thought Ameriprise fees and purchasing individual stocks were worth it as one point or another? If so, you will be tickled pink with PAS.

Once you develop an IPS and feel confident you won’t make behavioral mistakes you can cancel PAS.

Regards,
John
by John Laurens
Thu Feb 07, 2019 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Private school tuition on $200k hhi
Replies: 55
Views: 3078

Re: Private school tuition on $200k hhi

The strongest positive correlation between a student and test scores is the education level of their mother. You are behind on retirement savings for age 48. Based on your income, a 48 year old should already be a millionaire. I would do public school.

Regards,
John
by John Laurens
Mon Feb 04, 2019 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: How much do you need to live on 200k/ year forever?
Replies: 90
Views: 12486

Re: How much do you need to live on 200k/ year forever?

You are all out of touch with reality. I asked Dave Ramsey. To generate 200k indefinitely, you need about 500k in good growth stock mutual funds and a thousand dollar beater car to deliver pizzas 9 nights a week.

Regards,
John
by John Laurens
Fri Feb 01, 2019 7:15 pm
Forum: Personal Investments
Topic: HSA to Fidelity, now where to park the funds?
Replies: 18
Views: 1887

Re: HSA to Fidelity, now where to park the funds?

I would consider 100% bonds within your HSA, but maintain your 50/50 allocation across all accounts.

Regards,
John
by John Laurens
Thu Jan 31, 2019 9:31 am
Forum: Personal Investments
Topic: Fidelity solo 401k question
Replies: 15
Views: 632

Re: Fidelity solo 401k question

I contribute monthly to my fidelity solo 401K. It’s 12 stamps and 6 minutes per year of time.

Regards,
John
by John Laurens
Thu Jan 31, 2019 9:20 am
Forum: Personal Investments
Topic: Got suckered into universal life insurance
Replies: 27
Views: 2395

Re: Got suckered into universal life insurance

You do not need life insurance of any kind besides the free work LI.

Regards,
John
by John Laurens
Wed Jan 30, 2019 3:46 pm
Forum: Personal Investments
Topic: Eligible for 401K at work, Roth or Pre-tax?
Replies: 33
Views: 1361

Re: Eligible for 401K at work, Roth or Pre-tax?

As a side note to the OP. In your post, you stated that you had an “array” of mutual funds in your Roth with a balance of $20k. I would simplify that down to one mutual fund.

Regards,
John
by John Laurens
Tue Jan 29, 2019 3:35 pm
Forum: Personal Investments
Topic: Should I pay off my mortgage?
Replies: 37
Views: 2522

Re: Should I pay off my mortgage?

If she has “heard she can make more money in the stock market”, she should pay off the mortgage immediately.

She’s not prepared for a potentially 40% drop in equities. She will most likely make a huge behavioral mistake with this money.

Regards,
John
by John Laurens
Wed Jan 16, 2019 6:01 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 50842

Re: John Bogle is dead at 89

John Bogle is and always will be a Vanguard for the individual investor. May he find rest and his family peace. May our community continue to spread his ideas to many generations.

Regards,
John
by John Laurens
Tue Jan 15, 2019 11:31 pm
Forum: Personal Investments
Topic: Super Aggressive MF or ETFs?
Replies: 20
Views: 1188

Re: Super Aggressive MF or ETFs?

Vanguard Total World (VT) as your sole holding.

Regards,
John
by John Laurens
Sat Jan 12, 2019 1:44 pm
Forum: Personal Investments
Topic: VTI to VTSAX... taxable event?
Replies: 12
Views: 1207

Re: VTI to VTSAX... taxable event?

Same fund different share class. No taxable event. I’m not sure that Vangaurd will exchange VTI for the mutual fund in that direction. Do you have cap gains? Also isn’t VTI under $150 dollars per share? Is it worthwhile to add to your position in under $150 increments?

Regards,
John
by John Laurens
Sat Jan 12, 2019 1:39 pm
Forum: Personal Investments
Topic: Fidelity problems and what is substantially similar
Replies: 24
Views: 3224

Re: Fidelity Problems

I would consider them significantly different by a measure of over 1000 additional holdings in the vanguard total market index

Regards John
by John Laurens
Fri Jan 11, 2019 10:15 pm
Forum: Personal Investments
Topic: Fidelity problems and what is substantially similar
Replies: 24
Views: 3224

Re: Fidelity Problems

To clarify...you held the 4 in one fund in taxable as well?

Regards,
John
by John Laurens
Fri Sep 07, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Should I keep my financial advisor
Replies: 131
Views: 8212

Re: Should I keep my financial advisor

:dollar Or he can pay thousands to Vanguard, hundreds of thousands to the IRS, and lose millions in foregone opportunity costs at future values, because he tried to DIY when he was clearly unqualified to do so. Can we assume that your standard contract with customers includes language promising to s...
by John Laurens
Thu Sep 06, 2018 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Should I keep my financial advisor
Replies: 131
Views: 8212

Re: Should I keep my financial advisor

No offense, but spoken like a true financial advisor. He is a high earner and will end up paying millions of dollars to folks like you.... No offense taken. I am a true financial advisor. I certainly hope he finds someone like me, pays them millions of 1% AUM fees, and makes tens of millions of wha...
by John Laurens
Sat Sep 01, 2018 4:03 pm
Forum: Personal Consumer Issues
Topic: The twenty dollar rule
Replies: 44
Views: 4046

Re: The twenty dollar rule

If my wife told me every time she spent 20 bucks, I would just have to wear a headset. I would be answering the phone nonstop.

Regards,
John
by John Laurens
Thu Aug 30, 2018 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need Term Life Insurance?
Replies: 17
Views: 1582

Re: Do I need Term Life Insurance?

If I were you...I would have a good LTD from a good independent agent. You really are plus/minus on whether you need LI. If it were me, I would get 1million 10 year term. It would give your wife some breathing room for a few years so she doesn’t have to make any rash decisions regarding your liquid ...
by John Laurens
Wed Aug 29, 2018 5:32 pm
Forum: Personal Consumer Issues
Topic: Chipotle question
Replies: 73
Views: 4692

Re: Chipotle question

I get the bowl. Extra bones.

Regards,
John