Search found 14111 matches

by Stinky
Thu Mar 28, 2024 6:32 am
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 51
Views: 2507

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

You mention an old VUL policy. If your insurance needs are covered by your term life policies, that old VUL might be a candidate for surrender. If you’re interested in getting feedback from Forum members about the VUL, please post some details, either here or in a new thread. I’m glad that you’ve resisted the siren song of the whole life salesmen. Best to you. Thank you Stinky. I did put it here 10 yrs ago: https://bogleheads.org/forum/viewtopic.php?p=3312075#p3312075 But never got any response, so just left it alone because the numbers are too small relative to our current NW. Your VUL post was before I joined the Forum. :D These days, I try to comment on all relevant life insurance and annuity threads. If you want to copy the old post, u...
by Stinky
Thu Mar 28, 2024 6:17 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3621
Views: 568838

Re: Post your Financial Milestone Announcements Here

Veiled wrote: Thu Mar 28, 2024 6:00 am
Veiled wrote: Mon Apr 24, 2023 8:22 am Proud to announce that I am back to broke!!!
Back a year later: I’m at 100k in assets for the first time.

The recent run-up in stocks helped, and the tax man is about to take a bite out of the cash set aside for him…but I’m at least briefly looking at six digits. 😆
Looks like it took you less than one year to increase your net worth by $100k. Congratulations!
by Stinky
Thu Mar 28, 2024 6:15 am
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 51
Views: 2507

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

Agreed some level of life insurance should be done and we are not opposed to it. I have already mentioned that we both have Term life plus also an old VUL policy that we don't know what to do with so we just left it alone. I think what most people are trying to say here is WL may not be the right choice in our case. I obviously had my doubts so that is why I had posted the original post. It sounds like you’re headed in the right direction. Kudos to you for having your doubts about whole life and posting on the Forum to get feedback from knowledgeable (but financially disinterested) folks. You mention an old VUL policy. If your insurance needs are covered by your term life policies, that old VUL might be a candidate for surrender. If you’re...
by Stinky
Wed Mar 27, 2024 10:21 pm
Forum: Personal Investments
Topic: RMD from various IRAs
Replies: 10
Views: 1045

Re: RMD from various IRAs

Lalamimi wrote: Tue Mar 12, 2024 4:07 pm My DH has a tIRA and 3 annuities Edited: IRA Annuities (Don't judge, it was a weak moment).
It looks like you’ve gotten good answers about your original RMD question.

Is DH satisfied with the performance of the three IRA annuities? Does he know what kind of annuities they are?

Many Bogleheads strongly dislike certain annuities like variable annuities and indexed annuities, while other types of annuities like multi year guaranteed annuities (MYGAs) are favored by many Bogleheads.

If he has purchased one or more unattractive annuities, he would be able to exchange those annuities back into a brokerage IRA with no current taxable income impact.

Please post back if you would like to further discuss his annuities.
by Stinky
Wed Mar 27, 2024 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 51
Views: 2507

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

barnaclebob wrote: Wed Mar 27, 2024 4:43 pm
Do you really think everyone can just pay an insurance company 2 million dollars and then their heirs will get 5 million? That seems like it would be a terrible business model unless there's something you don't understand. You also don't necessarily need to understand whats in the magic box to know to stay away from it if the input and output don't make sense.
OP says he is 53 years old.

It’s eminently reasonable that he’ll live to age 83 (30 more years).

If his $2 million turns into a $5 million death benefit in 30 years, that’s an annual return of right at 3%.

3% per year over 30 years is hardly a world beating return.
by Stinky
Wed Mar 27, 2024 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 51
Views: 2507

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

I get the whole commission aspect. And I am also willing to drop these guys and not waste my time with them. But can you offer me a better alternative? Because in their scenario, my heir gets over 4 or 5MM on a 2MM investment and all of that tax free. Of which only 50% was given to the Insurance company. I have not been able to find the flaw in that logic. I am sure its there in it, but I am not able to find it yet. You say that you’re talking to “financial advisors”. You’re not. You’re talking to insurance sales people. To a salesman from NYL, NWML, or other such companies, every financial “puzzle” can be solved using life insurance. That’s what they know how to sell, so it ends up being the solution to every “problem”. Have you gotten an...
by Stinky
Wed Mar 27, 2024 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Analysis of an Annuity
Replies: 13
Views: 1122

Re: Analysis of an Annuity

bikechuck wrote: Wed Mar 27, 2024 10:45 am
I decided to annuitize this relatively small portion of my portfolio because the payout amounts for a joint annuity with a 20 year period certain we're almost double the interest only amounts. This allows me to feel comfortable with a more aggressive allocation on the remainder of my portfolio………

Best hair cut I have ever had!
That’s a very solid, thoughtful way of thinking about converting a fixed income asset into a stream of payments that is guaranteed to last so long as either you or spouse are alive.
by Stinky
Wed Mar 27, 2024 10:11 am
Forum: Personal Investments
Topic: CPI-U adjustment too small on AIG SPIA
Replies: 208
Views: 17583

Re: CPI-U adjustment too small on AIG SPIA

Third payment of the year. Overpayment has still not been corrected. Boo. It's starting to get to the point where I ought to contact them, because the annoyance of trying to do that may be less than the annoyance of letting it run on uncorrected. We need a general discussion of "institutional continuity risk!" Given that you’ve now gotten three payments that are too high, the chance that the payments for the remainder of 2024 will also be too high is near 100% (in my opinion). That is, absent some outside intervention from either a policyholder or an “internal audit” of these policies. Near the end of 2024, someone at AIG should “pick up the file” and set the payments for 2025. But given institutional inertia, I think there’s a g...
by Stinky
Wed Mar 27, 2024 7:46 am
Forum: Personal Investments
Topic: iShares iBonds question
Replies: 30
Views: 2486

Re: iShares iBonds question

Echard wrote: Wed Mar 27, 2024 7:27 am Hopefully, this post won't cause a lot of talking past each other. Bonds/Term ETF's vs typical bond ETF's is a passionate topic where people look at the advantages and disadvantages of each thru their own lens. I'm interested on feedback on my thinking below…….
I like your thought process.

It’s similar to what I’ve been doing with multi year guaranteed annuities (MYGAs) combined with defined maturity bond ETFs.

It seems to me that you’ve pretty carefully thought through the upsides (and downsides) for your personal style and financial situation. So if it works for you, that’s great.
by Stinky
Wed Mar 27, 2024 5:16 am
Forum: Personal Finance (Not Investing)
Topic: Keep unneeded Universal life insurance?
Replies: 3
Views: 414

Re: Keep unneeded Universal life insurance?

I purchased Univeral life insurance in 2000 and stopped to put more money into the account. I have about 15K in my account which will run out of new year or two. My insurance will not mature until 2037. I do not need insurance now as my daughter has a stable job. I am 63. I do not know what options I have. Any suggestions? Lynn Welcome to the Forum! Your post isn't crystal clear, but let me see if I understand what you're saying - --- You're 63 years old --- You have no one who (dependent child, spouse, etc.) who is depending on your income from working --- You don't feel that you need to keep the Universal Life policy --- You aren't currently paying premiums on the policy --- You have about $15,000 of surrender value available from the po...
by Stinky
Tue Mar 26, 2024 5:59 pm
Forum: Personal Investments
Topic: Those complimentary dinners for retirees by investment advisors
Replies: 137
Views: 10169

Re: Those complimentary dinners for retirees by investment advisors

OOH OOH OHH!! I just got my most recent invitation for a complimentary dinner in the mail today. A meal at Fleming's Steakhouse (a pretty upscale place for a Boglehead). The title of the presentation is "Essential Strategies for Retirement Planning in Today's Volatile Economy". It's being presented by a seasoned "financial planning specialist" who worked for 10 years for New York Life before he struck out on his own. And even better - he played for one of the local BIG COLLEGE FOOTBALL teams, in the Southeastern Conference. Instant credibility in the football-crazed South! One of the things he'll discuss is "how to design your portfolio to protect yourself against future drops in the market without sacrificing signi...
by Stinky
Tue Mar 26, 2024 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Analysis of an Annuity
Replies: 13
Views: 1122

Re: Analysis of an Annuity

First, I don’t understand your spreadsheet at all. Hmmm. I did try to come up with a simple analysis approach, so either it is wrong or obscure (or both!). I decided to convert the annuity payments into year 2024 equivalent dollars. I'll go with obscure for the moment and try to clarify with an example. Look at the 5% inflation column. In year 2038 when the annuity payout begins, 1.89 dollars has the value of 1.0 dollars today. In 2045, 2.65 dollars has the value of 1.0 dollars today. I took the average of the numbers from 2038 through 2.65 and came up with 2.25. Great -- so now I know that my averaged, inflation adjusted to 2024 dollars annuity payment has a linearized value of 2263/2.25 = $1,005 in 2024 dollars, and to get back my Premiu...
by Stinky
Tue Mar 26, 2024 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Analysis of an Annuity
Replies: 13
Views: 1122

Re: Analysis of an Annuity

I started down this path because I thought a QLAC might be a smart move to reduce RMD. A QLAC is a deferred income annuity (DIA) that can be funded from a tIRA. I also wondered if I could profit from a DIA, meaning not buy it for insurance against unfunded longevity but buy it because I'm willing to wager on long longevity. This thread is only for the DIA aspect Annuities have multiple variations, including riders for COLA, a joint insurance, and early death benefits. In the end I decided that the most vanilla version was the easiest to analyze, and after looking at the variations my gut feeling was that they were either similar or worse wagers. So this came down to a sensitivity analysis of inflation scenarios that lead to different break...
by Stinky
Tue Mar 26, 2024 6:19 am
Forum: Personal Finance (Not Investing)
Topic: LTC + Universal insurance in one product
Replies: 22
Views: 1076

Re: LTC + Universal insurance in one product

I definitely need some LTC benefits and I would like to have some life insurance as well since I am high earner in our household with 2 kids (7 years and 2 years). But, I am struggling to evaluate this offer? How shall I think about whether its a good deal. What I think that you need more is some life insurance and disability insurance. With young kids like yours, your much more pressing need is for those two products. You mention that you could buy $200,000 of death benefit for $189 per month. I checked one of the term life internet sites, and found that as a 41 year old male, you could purchase $1 million of death benefit, with a guaranteed level premium and death benefit for 20 years (when your youngest will be 22 years old), for under ...
by Stinky
Mon Mar 25, 2024 10:30 am
Forum: Personal Investments
Topic: Those complimentary dinners for retirees by investment advisors
Replies: 137
Views: 10169

Re: Those complimentary dinners for retirees by investment advisors

DetroitRick wrote: Mon Mar 25, 2024 10:24 am
I suppose that if any really looked like true informational seminars, there are one or two topics that might otherwise interest me.
But if they weren’t selling anything, how would they pay for your “free” dinner? :twisted:

The local financial planner annuity salesman who has the biggest presence on local TV and radio has taken a different tack than paying for restaurant meals. He hosts free seminars at local libraries and community centers. And he teaches a class at a local community college for which attendees actually need to pay an enrollment fee, so maybe he makes a few bucks there.
by Stinky
Mon Mar 25, 2024 10:12 am
Forum: Personal Investments
Topic: Those complimentary dinners for retirees by investment advisors
Replies: 137
Views: 10169

Re: Those complimentary dinners for retirees by investment advisors

MnD wrote: Mon Mar 25, 2024 9:37 am So how bad could they be?
Please go to a dinner and respond back with your experience.

Boglehead Nation eagerly awaits your report.

(And don’t buy anything while you’re there. And make sure that your spouse feels the same way about buying anything.)
by Stinky
Sun Mar 24, 2024 5:37 pm
Forum: Investing - Theory, News & General
Topic: Purchasing MYGAs (multi year guaranteed annuities) - mega thread
Replies: 2251
Views: 292812

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

tj wrote: Sun Mar 24, 2024 5:29 pm
CardinalRule wrote: Sun Mar 24, 2024 5:24 pm Stinky, I just pulled up the documents and you're right. I erred on the terminology. Thanks for educating me on that.

Annuity Source of Funds: Traditional IRA
Annuity Option: Period Certain Annuity
Purchase Payment: $195,000.00
Taxable Amount: $3,640
Payment Frequency: Monthly
Period Certain: 5 Years
I wouldn't think there's a way for you to get out of that 5 year contract after you've already started the payments.
I tend to agree.

Call Mass Mutual and see if there’s any wiggle room. I wouldn’t bet on it, but it doesn’t hurt to ask.

Let us know what you find out.
by Stinky
Sun Mar 24, 2024 5:14 pm
Forum: Investing - Theory, News & General
Topic: Purchasing MYGAs (multi year guaranteed annuities) - mega thread
Replies: 2251
Views: 292812

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

I thought I would ping this mega thread to see if anyone has experience with my situation. In early 2023, I purchased a 5-year MYGA from MassMutual, via Fidelity. The cost was about $195,000, rolled over from a traditional IRA. The annuity began paying out (roughly $3,500 monthly) in September 2023, which is when I originally planned to retire. My rationale for the annuity - a financial and psychological bridge to delayed Social Security - still holds, but I ended up delaying my retirement to April 2024 (I am 65). I will also have some 1099 consulting income this year. Finally, I have become sensitive to future IRMAA impacts, which is something I hadn't even thought about originally. And so bottom line - I don't really want or need the tax...
by Stinky
Sun Mar 24, 2024 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity for spendthrift brother on mom's death?
Replies: 52
Views: 4171

Re: Annuity for spendthrift brother on mom's death?

Another no vote for the annuity.

I agree that no one should have 100% of their assets in an annuity.

I don’t know that it’s possible to have an annuity whose payment stream can’t be sold. But I sure do know that the bottom feeders who buy these payment streams are using a high discount rate on the payments to minimize the lump sum payment (and maximize their profits).

Finally, it might be that the brother has a shorter life expectancy than average, for any one of a number of reasons alluded to above. That would make him a bad choice for a SPIA.
by Stinky
Sun Mar 24, 2024 12:26 pm
Forum: Personal Investments
Topic: Income from an Inherited Annuity
Replies: 8
Views: 827

Re: Income from an Inherited Annuity

fourier wrote: Sun Mar 24, 2024 12:21 pm With an inherited non-qualified annuity, if I spread the payments over 3-5 years, will the payments follow the Last-In-First-Out Tax Rule of an annuity or will the taxable income be spread throughout the 3-5 years?
My understanding is that if you formally “annuitize” it, then taxable income will be spread.

But if you just stretch out withdrawals, it will be interest first tax reporting.
by Stinky
Sun Mar 24, 2024 12:15 pm
Forum: Investing - Theory, News & General
Topic: The Evolutions of Indexes, new "Bogleheads on Investing" podcast with guest Rolf Agather
Replies: 12
Views: 1681

Re: The Evolutions of Indexes, new "Bogleheads on Investing" podcast with guest Rolf Agather

I listened to the podcast and it was excellent. For you index snobs out there, this is a must listen to podcast. Learning how indexing has progressed was very interesting to say the least. What I didn't know was that Russell and FTSE merged. Also a discussion about how active investing can cleverly hide as passive investing through a very creative definition of indexing. Stuff like that. Again Rick, excellent work as always and I deeply appreciate your efforts. I agree with Nedsaid 100% about the podcast. It’s well worth a listen. One of the negative uses of “indices” that I’ve seen is in connection with indexed universal life and annuity products. A number of life insurers have worked with investment banks to create customized indices whi...
by Stinky
Sat Mar 23, 2024 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity Consideration: I'm the House
Replies: 19
Views: 1965

Re: Annuity Consideration: I'm the House

I presume that annuities are based on average life expectancy of a cohort stratified by sex, age, and to a lesser degree non-discriminatory parameters. Using the SS actuarial tables, average life expectancy of a 65 y/o male is 82. I know specifics about me that are (presumably) not known to an annuity underwriter: genetics, family history, lifestyle, blood pressure, diet, weight, exercise, substance abuse history, vaccination history, etc. I’m sorry, but you’re not correct in your assessment of annuity pricing. Life insurers price SPIAs based on the mortality experience of those people who buy SPIAs, rather than population or Social Security mortality. And people who buy SPIAs are, as a group, healthier than the population as whole, becaus...
by Stinky
Sat Mar 23, 2024 1:32 pm
Forum: Personal Investments
Topic: Tax on non-qual variable annuity
Replies: 2
Views: 304

Re: Tax on non-qual variable annuity

A relative has a non-qualified variable annuity with Transamerica (transferred from Vanguard). As I understand, if it is annuitized over a fixed number of years, each payment will essentially be split pro-rata between taxable earnings and non-taxable return of basis (i.e., the amount originally paid for the VA). Earnings will be reported on a 1099-R and will be ordinary income. Will partial withdrawals be treated the same way? In either case, which boxes on the 1099-R will be checked? Your understanding as to what happens with annuitization is correct. Pro rata, and ordinary income. Partial withdrawals from annuities are not treated as pro rata. Rather, they are treated as income first, followed by return of basis. So every dollar withdraw...
by Stinky
Sat Mar 23, 2024 12:34 pm
Forum: Personal Investments
Topic: Any role of Deferred Fixed Annuity in 401K/IRA account
Replies: 13
Views: 859

Re: Any role of Deferred Fixed Annuity in 401K/IRA account

vrpatel1 wrote: Sat Mar 23, 2024 12:11 pm I am planning to continue with my current asset allocation of 3 fund portfolio.
That sounds like a good plan.

Best to you.
by Stinky
Sat Mar 23, 2024 10:32 am
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6118

Re: Bought a new Lexus - can't get a second key for 3-5 months???

mariezzz wrote: Fri Mar 22, 2024 7:51 pm This whole thread is reinforcing for me to keep my 2000 Honda forever…..

Might not have certain safety improvements …..
If you continue to be happy with your 2000 Honda, that’s just great.

But you might be amazed at the incredible advances in car technology in the last quarter century. High quality backup cameras, lane departure and blind spot warnings, improved airbags and seat belts, crash avoidance systems, dynamic cruise control, etc. And the list goes on and on.

If you venture into a dealership, you might also be amazed by the price of today’s cars. Much higher than what you saw in 2000.

Of course, choose what’s right for you.
by Stinky
Sat Mar 23, 2024 9:00 am
Forum: Investing - Theory, News & General
Topic: Purchasing MYGAs (multi year guaranteed annuities) - mega thread
Replies: 2251
Views: 292812

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Does anyone know if annuity issuers are notified by the Social Security Administration when a policyholder dies? If so, I would think that the death benefit would automatically be released to the beneficiaries rather than the company waiting to be notified by a family member. I’m trying to gain a better understanding of how this process works as to determine if I should inform my kids of my MYGAs sooner than later I know that life insurers proactively check the SS database concerning their SPIA policyholders, where the insurer is making (usually) monthly payments and it's in the insurer's best financial interest to determine whether a policyholder has died. Further, I know that many life insurers have agreed to check the SS database concer...
by Stinky
Sat Mar 23, 2024 7:58 am
Forum: Personal Investments
Topic: What to do with an After Tax Retirement Annuity?
Replies: 8
Views: 664

Re: What to do with an After Tax Retirement Annuity?

fedbogle wrote: Sat Mar 23, 2024 6:04 am
Thanks, Stinky, appreciate it. I'm 99% getting it out of the annuity and into my normal asset allocation. TIAA says it won't be subject to the 10-year rule once I roll it over or withdraw it, for some reason.

So I think the best option is either (1) roll it all into a tIRA, or (2) withdraw part A (and put it in my taxable account, I assume) and roll part B into a tIRA.
I don’t know why you’d want to roll Part A into a traditional IRA (even if you could, which I doubt).

If Part A were to go into a traditional IRA, regular application of the IRA rules would cause all distributions to be fully taxable income. And you’ve said that the money is currently after-tax. So why subject it to unnecessary future taxation?
by Stinky
Sat Mar 23, 2024 7:53 am
Forum: US Chapters
Topic: Dates for 2024 BH Conference?
Replies: 7
Views: 1184

Re: Dates for 2024 BH Conference?

White Coat Investor wrote: Sat Mar 23, 2024 7:19 am I didn't realize the dates were secret. I can't think of a reason that they should be but I guess I'll leave it up to the Bogle Center board to announce.

I think it would be a good idea to make a "Save the Date" announcement as soon as the site is booked even if registration isn't open, but I suppose there's always the worry that people would book the hotel and not book rooms in the conference block and that's a big part of conference economics.
Seems to me that the dates (if already determined) could be announced now, and the name of the venue could be announced when conference registration opens.

That would eliminate the potential problem of “hotel front-running” that you mention.
by Stinky
Fri Mar 22, 2024 8:27 pm
Forum: Personal Investments
Topic: Stan the Annuity Man is leading a webinar "Understanding the Pros and Cons of Annuities" Thursday, April 11 at 4:30PM
Replies: 2
Views: 592

Re: Stan the Annuity Man is leading a webinar "Understanding the Pros and Cons of Annuities" Thursday, April 11 at 4:30P

hopefully this is ok to post, if not, mods please delete: Found a webinar on annuities from Merriman's email that Stan (Haithcock) The Annuity Man will be leading, explaining annuities (webinar is called "Understanding the Pros and Cons of Annuities" Thursday, April 11 at 4:30PM). If you care to register: https://us02web.zoom.us/webinar/register/WN_Om1073lTTNW88FCdHy4WTA#/registration I’ve listened to Stan’s podcasts and watched some of his YouTube videos. He emphasizes annuities with guarantees - MYGAs, SPIAs, DIAs, etc. He doesn’t sell variable annuities, and sells indexed annuities only for the “guaranteed withdrawal benefit” riders that they offer. He fits right in with the general Boglehead view on “good” and “bad” annuities.
by Stinky
Fri Mar 22, 2024 5:59 pm
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6118

Re: Bought a new Lexus - can't get a second key for 3-5 months???

AllMostThere wrote: Fri Mar 22, 2024 5:36 pm
Mind if I ask if you were pleased with pricing on your Lexus? Here in Detroit area, they are still playing games with dealer market adjustments, so I can wait until things normalize more. Curious how markets are doing in other areas.....
I was pleased with pricing. I paid about $1,000 over invoice on a high trim line gas model. And I netted about $1,300 more for my trade in than if I had sold it to Carvana. So I paid about invoice net.

Much better than pricing would have been a year or two ago. And the lot was full of new cars, so plenty to choose from.
by Stinky
Fri Mar 22, 2024 4:29 pm
Forum: Personal Investments
Topic: Any role of Deferred Fixed Annuity in 401K/IRA account
Replies: 13
Views: 859

Re: Any role of Deferred Fixed Annuity in 401K/IRA account

retiredjg wrote: Fri Mar 22, 2024 4:24 pm
lakpr wrote: Fri Mar 22, 2024 3:35 pm
retiredjg wrote: Fri Mar 22, 2024 12:55 pm
vrpatel1 wrote: Fri Mar 22, 2024 12:12 pm Do I withdraw money from my 401k - like rollover from 401k to MYGA?
If the 401k is provided by your current employer, you may not be able to withdraw at all. Is this an old 401k?
OP has an Individual 401(k) / Solo 401(k).
In that case, withdrawal may not happen. :happy
OP might need to roll the money from 401k into an IRA to facilitate the transaction.
by Stinky
Fri Mar 22, 2024 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance Question
Replies: 1
Views: 256

Re: Whole Life Insurance Question

About 50 years ago a good friend of mine (best man in my wedding) was selling whole life insurance. I bought a small policy to get some life insurance as my wife and I just had our first child, but also to help my friend out. After I bought that small policy I bought term life insurance when our three kids were young. They are now all out of college, married and have kids of their own. I no longer have term insurance but still have the whole life policy as I am no longer required to make payments. It is my understanding that if I die before my wife does, she will receive the death benefit tax free. My question is if I name my three children as primary beneficiaries, would they each receive one third of the death benefit tax free? Yes, that...
by Stinky
Fri Mar 22, 2024 4:20 pm
Forum: Personal Investments
Topic: What to do with an After Tax Retirement Annuity?
Replies: 8
Views: 664

Re: What to do with an After Tax Retirement Annuity?

Hi Everyone. I have an inherited after tax retirement annuity (ATRA) with TIAA. Part A is non-taxable, i.e., all taxes were paid and I could withdraw it as cash. Part B is taxable when it is withdrawn, and could be rolled over into a traditional IRA. I could also rollover part A into a traditional IRA. I can not roll any of it into a Roth IRA. My objective is to minimize taxes and hold the investment for a long period. I am thinking it makes sense to roll the whole thing into a traditional IRA. Am I right? Anything I'm missing? Thanks in advance to all the good folks here. I'm not familiar with any special features which might be present in a TIAA annuity. But I'll give you some answers relating to annuities in general: --- On Part A, earn...
by Stinky
Fri Mar 22, 2024 4:12 pm
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6118

Re: Bought a new Lexus - can't get a second key for 3-5 months???

Be careful with the Digital Key. It’s buggy and not totally reliable. DO NOT GO OUT OF TOWN WITHOUT THE ACTUAL FOB. Digital Key is fine locally, where the worse thing is taking an Uber or having your wife bring you the (single) FOB. But you don’t want to be in the middle of Interstate <insert desolate Interstate that you travel> and be depending on the Digital Key. EDIT: Also, the dealer should have set this up for you at delivery. Having the Digital Key should not be such a surprise, a week or so after purchase. EDIT 2: Here’s a good thread on the Digital Key: https://www.clublexus.com/forums/rx-5th-gen-2023-present/997993-digital-key-questions.html I appreciate your cautionary statements. DW is the primary driver of the car, so she "...
by Stinky
Fri Mar 22, 2024 4:07 pm
Forum: Personal Investments
Topic: Any role of Deferred Fixed Annuity in 401K/IRA account
Replies: 13
Views: 859

Re: Any role of Deferred Fixed Annuity in 401K/IRA account

At Blueprint Income - CL Life , B++ rating, 3 yrs/6% (best rate), commission rate 2-3% Equitrust, B++ rating, 10 yrs/5.6%, commission rate 2-3% My questions are - Do I withdraw money from my 401k - like rollover from 401k to MYGA? What after maturity? - renew or rollover back to 401k or withdraw (money not needed for at least 10 yrs) should I consider 10 yr term and higher amount, may be up to 500k? I am not familiar with these companies. This is (annuities/MYGA) new to me. Thank you. You've already gotten some good advice from retiredjg and lakpr above. Let me reiterate why you MIGHT want to have a multi-year guarantee annuity (MYGA) as part of your fixed income allocation, most likely in an IRA (rather than in a 401(k)). If you want to l...
by Stinky
Fri Mar 22, 2024 11:30 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3621
Views: 568838

Re: Post your Financial Milestone Announcements Here

A day or two ago, I'm just going to etch it in my brain as "Spring Equinox 2024", I joined The Two Comma Club with respect to conservatively-estimated net worth. I realize with market fluctuations and the loose valuation of my modest real estate that it's a vague milestone achieved but it feels warm & fuzzy to peg it to a date to remember. After 20 years of Bogleheading I think it will finally be time to post my portfolio review write-up at the end of this quarter to bounce it off of the brilliant hivemind. Only my parents know about this and they themselves are loosely at The Two Comma Club criteria. Yes, that is a date to remember. Congratulations! And do post your portfolio for review. If you've been "Bogleheading&quo...
by Stinky
Fri Mar 22, 2024 11:20 am
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6118

Re: Bought a new Lexus - can't get a second key for 3-5 months???

UPDATE FROM OP - I visited the dealership today, and learned that our car was "digital key" compatible. So, after a few minutes of manipulation by the "technology guy" at the dealership, my phone now acts as a "key fob". So DW can start and drive the car with the "real" key fob. And I can start and drive the car using my phone. HOORAY!! The dealership technology guy told me that Lexus has now made second keys available for all cars manufactured in November 2023 and earlier. So, that means that there is (at maximum) a five-month backlog on second keys. And he said that Lexus appears to be catching up rapidly with second keys to fill the gap, so maybe there will be a time in the near future when every ...
by Stinky
Fri Mar 22, 2024 5:04 am
Forum: Personal Investments
Topic: Different Annuity Date: Transamerica vs. original Vang VA
Replies: 2
Views: 388

Re: Different Annuity Date: Transamerica vs. original Vang VA

Hi, Back in Aug. 1, 1997, before I was financially savvy, I invested in then Vanguard VA, which was transferred to Transamerica in late 2020. I have not needed the funds so have just let it accumulate (with allocations part of overall portfolio). Reviewing the paperwork on the original Vanguard contract, it did have the nice 4%+ payout; the Annuity Date was Dec. 1, 2020 (when I turned 65 yo). The Transamerica paperwork also has Aug. 1, 1997 as effective date, but has 12/01/2054 as the Annuity Commencement Date when I will be 99 yo. I don't recall being asked about this change. 1) Presumably it gives me more time to annuitize and is a good thing? I don't believe that the "Annuity Date" in the original contract will (or should have...
by Stinky
Thu Mar 21, 2024 9:01 pm
Forum: Personal Investments
Topic: Equiy Indexed Annuity using retirement money
Replies: 28
Views: 1902

Re: Equiy Indexed Annuity using retirement money

buddingdr wrote: Wed Mar 20, 2024 8:44 pm He seemed to suggest that he was just providing info about these options and that he does not get anything from these.
That is a bald-faced, screaming lie.

Please post back and let us know what you decided to do.
by Stinky
Thu Mar 21, 2024 8:17 pm
Forum: Personal Investments
Topic: Any role of Deferred Fixed Annuity in 401K/IRA account
Replies: 13
Views: 859

Re: Any role of Deferred Fixed Annuity in 401K/IRA account

I have about $1.7 mil in Solo 401k. All in Fidelity US Total Bond Index Fund. My Fidelity Advisor is recommending to move some of the money into Deferred Fixed Annuity (New York Life) for 3 yrs to lock in the interest rate. Current interest rate is 4.5% for basic annuity and 4.75% for Jumbo (>$100k). I am currently 57 yrs old and not planning to withdraw until 70 yrs. Any thoughts/suggestions? I think that MYGAs are a fine choice for a fixed income investor who want a to lock in a yield and is highly confident that he/she can leave the money invested for the full term of the interest guarantee period. (Most of my fixed income allocation is in MYGAs). I agree with poster lakpr that you could earn a considerably higher interest rate than is ...
by Stinky
Thu Mar 21, 2024 5:14 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3621
Views: 568838

Re: Post your Financial Milestone Announcements Here

luminous wrote: Thu Mar 21, 2024 12:35 pm
luminous wrote: Mon Dec 13, 2021 1:33 pm Last month our net worth passed the $4M mark, which just feels unreal. I am in my mid-40s, spouse a bit younger. We don't own real estate so this is all investments. As ever, we are thankful for this forum for helping us keep it simple and stay the course.
We just passed $5M in invested assets. Still so thankful for this forum for helping us keep it simple and stay the course.
That’s great!

Congratulations on growing your assets in retirement.
by Stinky
Thu Mar 21, 2024 3:28 pm
Forum: Investing - Theory, News & General
Topic: Purchasing MYGAs (multi year guaranteed annuities) - mega thread
Replies: 2251
Views: 292812

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

soretired wrote: Thu Mar 21, 2024 2:47 pm Any negative reviews on National Security Life, B++, out of Utah? Paying 5.85% for 5 yrs.

https://securitynationallife.com/
I think you have the wrong website. Here’s the correct one.

https://www.nationalsecuritygroup.com/

I have no experience with that company.
by Stinky
Thu Mar 21, 2024 2:36 pm
Forum: Personal Investments
Topic: Equiy Indexed Annuity using retirement money
Replies: 28
Views: 1902

Re: Equiy Indexed Annuity using retirement money

Doctor Rhythm wrote: Thu Mar 21, 2024 2:03 pm You’re being asked to move money out of your 403b because there aren’t opportunities for the advisor to make money off you there. Once your savings are in the wilds (eg, an IRA), he can steer you towards investments that earn him commissions.
That IS the absolutely correct analysis.
by Stinky
Thu Mar 21, 2024 2:34 pm
Forum: Investing - Theory, News & General
Topic: Purchasing MYGAs (multi year guaranteed annuities) - mega thread
Replies: 2251
Views: 292812

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Just wanted to give my recent experience purchasing MYGAs as I’ve been lurking here and benefiting from everyone’s experience: Gainbridge– Was unable to open an account as they could not verify my identity and had no alternative means of doing so per email with their compliance officer. Blueprint– Applied with Americo, Pacific Guardian, and Sentinel Security. Despite Americo being listed as having expedited processing, they took longer than the other two companies to process my application. They inspired so little confidence that I canceled one application and abandoned another. Pacific Guardian allowed me to wire the funds while Sentinel Security required a check sent by prepaid FedEx. Sentinel Security sent me a copy of my policy by FedE...
by Stinky
Thu Mar 21, 2024 8:57 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3621
Views: 568838

Re: Post your Financial Milestone Announcements Here

broncocountry25 wrote: Thu Mar 21, 2024 8:51 am After contributing $7K to the ROTH IRA this year my wife and I have both broke $100K in those accounts.

Feels good as this was the first retirement account we opened and contributed to before I even had access to a 401K.

Turn 34 at the end of the month so hopefully with additional contributions and growth these accounts will be helpful down the road...
That’s absolutely excellent!

Keep on contributing and investing wisely, and you’ll see those accounts grow and grow over time.
by Stinky
Thu Mar 21, 2024 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Tracking gross or net portfolio value
Replies: 16
Views: 917

Re: Tracking gross or net portfolio value

drr1099 wrote: Thu Mar 21, 2024 6:52 am Alternatively, someone could instead tax all the tax defered funds and gains and come up with a net after-tax value.
This is what I personally do.

So, for example, as I make Roth conversions which cause me to pay taxes on the converted amount, my measure of “net worth” does not change. That’s because my net worth calculation has already considered the “deferred taxes” embedded in my traditional IRA.

I realize that this is not the majority opinion on this Forum. And that’s just fine.
by Stinky
Thu Mar 21, 2024 4:53 am
Forum: Personal Investments
Topic: Insurance Co attempting to change terms of contract
Replies: 20
Views: 2411

Re: Insurance Co attempting to change terms of contract

I completed the complaint form and uploaded the documentation online with the Virginia Insurance Commission who acknowledged receipt of the complaint today. Given Rex66's experience with Guardian, I don't expect movement or resolution immediately. But, I take solace in the fact the annuity is not supposed to start paying until April 2025 so there is time. What I thought was an easy fix due to an IT data entry issue is turning into something much more. To answer a couple questions: 1) Since this contract was initiated in Jan 2023 and not funded until April 2023, I had no previous year statement to look at. 2) I could have, but did not, look at the Guardian website to spot the issue sooner due to the fact that payouts weren't to begin until ...
by Stinky
Wed Mar 20, 2024 10:01 pm
Forum: Investing - Theory, News & General
Topic: Purchasing MYGAs (multi year guaranteed annuities) - mega thread
Replies: 2251
Views: 292812

Re: MYGA as bond substitute?

So we are retired and have cash overweight and need to term some of it out to avoid reinvestment risk. I was thinking of Symetra MYGA (5 year term is 5.25% and 7 year term is 5.3%). Symetra Life Insurance (the entity issuing the MYGA is rated A by AM Best). This money will not be needed and I am fine locking it up and understand surrender charges that are steep. My logic was that Bloomberg Agg expected 10 year return per Black Rock capital market outlook and others is high 4% or low 5%. The Symetra MYGA is on the high end of that range and no volatility (understand illiquidity issue). These products backed by state guarantee associations (250k in Illinois). does my logic make sense. I dont feel equipped to manage individual bonds (lack of ...
by Stinky
Wed Mar 20, 2024 9:49 pm
Forum: Personal Investments
Topic: Equiy Indexed Annuity using retirement money
Replies: 28
Views: 1902

Re: Equiy Indexed Annuity using retirement money

The advisor suggested moving the 400k portion to an IRA and then about 100k of that 400k into SILAC Denali 10 EIA. Oh my gosh! What a terrible idea! Others have already advised you on the follies of indexed annuities. I’ll tell you another GIANT reason that this advisor needs to be fired. The company he recommended,SILAC, is rated as B+ by AMBest. That’s an extremely low rating. Worse yet, the company is on “negative outlook”, meaning that it’s under review for further downgrade. The problem is that SILAC has reinsured some business to a company in Bermuda that is in significant financial peril. If the Bermudan company fails, SILAC might not be far behind. I’ve read a lot of press releases from AM Best. This release on SILAC from last mont...
by Stinky
Wed Mar 20, 2024 5:32 pm
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6118

Re: Bought a new Lexus - can't get a second key for 3-5 months???

H-Town wrote: Wed Mar 20, 2024 5:26 pm
Stinky wrote: Wed Mar 20, 2024 5:23 pm
H-Town wrote: Wed Mar 20, 2024 5:14 pm I never would have thought we need 2 keys for a new "luxury" vehicle.
Two drivers. Two keys are optimal.

(Yeah, I know - first world problem :twisted: )
You can ask the dealership for a free "credit card" fob. My colleague has it.

Image
Going out to the dealership on Friday. Will ask about it then.

Thanks for the tip!