Search found 387 matches

by kenbrumy
Sat Oct 30, 2010 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Estate Taxes for 2011
Replies: 12
Views: 2697

Nobody knows. Without action, the estate tax deduction will go to $1MM but the step up upon death will also go back to "unlimited." I tried a similar post about what income taxes are changing to next year and it got blocked for being "political." Apparently, wondering how much money the government is confiscating from us after doing and not doing numerous things somehow came across as political. :roll: I've decided there's no way to really predict what the dysfunctional mess we're depending on to create our tax code will finish early enough for me to plan for what contribution rate I want to make to my SERP plan. If something isn't done soon, the withholdings will be very high and require companies to recalculate things ...
by kenbrumy
Wed Oct 20, 2010 6:05 pm
Forum: Personal Investments
Topic: Switch, or buy Vanguard funds in ML account?
Replies: 29
Views: 8909

Get away from Merrill Lynch as soon as you can. Why are you still reading this post. Get your account moved NOW.
by kenbrumy
Sat Oct 16, 2010 7:32 am
Forum: Investing - Theory, News & General
Topic: Maximum Contributions for 2011?
Replies: 9
Views: 2605

Since these are supposed to follow inflation, the social security payout freeze is probably a good indication that no changes to the IRA/401k contribution levels will be made.
by kenbrumy
Sun Oct 03, 2010 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund (Funding Question)
Replies: 15
Views: 2102

Not reading his other posts, I don't know how secure his job is. Of course, I don't think government workers or tenured professors/teacher are particularly safe anymore but they are more secure than the typical wage slave. If the OP has what he feels is a "very secure position" an emergency fund would only need to be enough to cover major car repairs or insurance deductibles. A "secure position" that, if lost, could probably be replaced quickly may be fine with a 6 month emergency fund. "Normal positions" should target a year. Most entrepreneurs should have two or more years in their emergency fund but they seldom do until the business is highly successful and sometime not even then. As a point of reference, I ...
by kenbrumy
Fri Sep 24, 2010 4:57 pm
Forum: Personal Consumer Issues
Topic: help !!! letter from IRS !!!
Replies: 20
Views: 7480

You got the letter because of the IRS computer programs that search out discrepancies between various forms and tax law interpretations. I have gotten several and they eventually go away with persistence. I recommend you write a very factual letter detailing the reason what they are saying isn't an accurate calculation of the taxes you owe. Every letter I have received have been demand letters saying I need to pay more taxes. I would actually recommend you not call anyone at the IRS unless you are a congressman that doesn't have to pay taxes. Recent cases seem to support this. The reason I wouldn't call is that the first level of people that you will reach are best described as idiots. They also don't have a clue about your case. You're bet...
by kenbrumy
Sun Sep 19, 2010 2:05 pm
Forum: Investing - Theory, News & General
Topic: State pension funds questions
Replies: 9
Views: 1974

Re: State pension funds questions

I am a participant in State Universities Retirement System in Illinois. I am many years from getting any pension/annuity. Have there been failures of systems like this in the past? Also, where does this sit in term of priority for the state to pay? Is there a reasonable chance that this annuity may not be honored when the time comes? Unlike other states IL has a constitutional provision that protects both past and future retirement benefits of public employees from reduction. What you need to find out is who is ultimately liable for paying benefits, e.g, the universities or the IL taxpayers. If only the universities and not the state or its taxpayers are liable then the benefits will be guaranteed by the plan's assets and the ability of th...
by kenbrumy
Sun Sep 19, 2010 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: xxxxxxxxxxxxxxxxxxxx
Replies: 21
Views: 4799

Re: Moms gambling and she's about to lose her house !

...and the imputed rent would be a gift to your mother. Anything over the gift tax limit would be taxable or applied against your lifetime limit. Do you have any authority for this? John This if from the FAQ site for the IRS about the Gift Tax. What is considered a gift? Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return. Buying Mom's house and letting her live there rent free might fly below the IRS radar but there is then the issue of deducting the property tax and second home mortgage interest. The best financial way to handle this would be to treat it as a rental. The"rental" to a relative would have to be for "fair market ...
by kenbrumy
Sun Sep 19, 2010 11:12 am
Forum: Personal Consumer Issues
Topic: 9mm pistol for lefty at a shooting range?
Replies: 66
Views: 11688

Shooting revolvers and automatics are pretty much ambidextrous. The only left-right handed issues are where the buttons are and how shells are ejected (autos only). Many autos eject straight up so that shouldn't be an issue. I will frequently fire with both hands. I don't know if specific handgun models are available in left handed models. I know you can buy left handed rifles. There's nothing like the thrill of firing an semi automatic rifle left handed and watching the bolt come back to scoop your eye out. :o Before you decide to go left or right handed, figure out which is your dominant eye. I'm left handed but right eye dominant. Rather than retrain my eye, the inconvenience of shooting right handed isn't much of an issue for me. 9 mm a...
by kenbrumy
Sun Sep 19, 2010 8:37 am
Forum: Personal Finance (Not Investing)
Topic: xxxxxxxxxxxxxxxxxxxx
Replies: 21
Views: 4799

Re: Moms gambling and she's about to lose her house !

My elderly Mom has a severe gambling problem. She has lost all her savings and is now at risk of losing her house. (She has already taken out a home equity line of credit.) Recently I was alarmed to learn she began looking into a reverse mortgage. Worse, she would not have gotten anything close to the true value. My thought is this: I want get a loan to buy Moms house and pay off her mortgage. A plus is that she would pay no capital gains tax. However, if I give her the cash proceeds from the sale of the house I’m afraid she will gamble away the money. If I buy Moms house can I put her money into a trust allowing me to control her access to the proceeds ? Since I already have a mortgage on my house and this loan wouldn’t qualify as my prim...
by kenbrumy
Sun Sep 19, 2010 7:34 am
Forum: Investing - Theory, News & General
Topic: State pension funds questions
Replies: 9
Views: 1974

I am not in any state pension but I don't fully rely on any source of income for my retirement. Your pension could be substantially changed before or after you retire. Social security could be radically altered. I have personally had retirement plans at publicly traded companies terminated and benefits frozen.

Plan on accumulating various sources of assets and diversify yourself appropriately. A state pension is just one type of asset.

As to your question, public pensions have in the past been modified. The few failures have typically been restricted to municipalities. I am not aware of any state "failing" but it's difficult to make predictions -- especially about the future.
by kenbrumy
Sun Sep 19, 2010 7:20 am
Forum: Investing - Theory, News & General
Topic: Risk Won, Florida Taxpayer's Lost
Replies: 39
Views: 5046

Why would anyone expect otherwise. The advisers compensation is based on their return. They make serious money in a so-so year but are looking to score big by knocking it out of the park. If it blows up which they think is unlikely because they are "geniuses," they get another high paying job at another state pension fund because they had managed the Florida fund. The State of Florida is also prodding these guys to get a better return because they know they are seriously underfunding the pension plan unless they get outsized returns. The incentives and downsides are exactly the same as the guys at AIG that loaded up on all the credit default swaps. I'm willing to bet they are either reemployed somewhere or have retired on their ye...
by kenbrumy
Sat Sep 18, 2010 4:49 pm
Forum: Personal Consumer Issues
Topic: Life/Career Coaches
Replies: 22
Views: 4013

After my firing in 2002, part of my requirement to get my severance was to utilize the services of an outplacement consultant. The guy meant well and explored career interests, skills, resources, etc with me for a couple of months. He tried to help with my resume but I've been doing resumes so long I think I was a better judge about what a manager was looking for than he did. Bottom line, I was 51 YO in a weak economy (not as weak as this one) but age discrimination is alive and well. After giving up on his "vision quest," I basically found a crappy government contract position that was light years below my capabilities. I paid about 60% of my former salary and I had enough to get by on with only minor economizing of my former lif...
by kenbrumy
Sat Sep 18, 2010 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: xxxxxxxxxxxxxxxxxxxx
Replies: 21
Views: 4799

Unless you can get a diagnosis of "diminished capacity" and you have a DPOA, you are probably going to not be able to stop your mother from destroying herself. She will have to hit bottom all on her own. You can talk with her and see if you can reason with her but she has to choose whether she hits a "high bottom" or a "low bottom." I wouldn't give her a penny at any time for any thing. If you think she's hungry, bring her some groceries but don't stock her pantry. That just frees up cash flow for gambling. If she looses her house help her get a low cost apartment within her budget. If she gets evicted for non-payment, point her to a homeless shelter or let her move in with you with strict rules. I'd actually r...
by kenbrumy
Sat Sep 18, 2010 3:12 pm
Forum: Personal Investments
Topic: Estate Planning For Spendthrift Spouse
Replies: 20
Views: 4858

Paula,

Look on the bright side. You are statistically far more likely to outlive him than the other way around. Even if you don't your husband will probably be safely over 70 and may have lost his taste for wasteful spending. My mother could put a drunken sailor to shame as far as blowing money went but she "got religion" about the time she turned 60.

If you don't outlive him, so what? You are not his mother. He's supposed to be a big boy by now. You don't have any kids that might feel obligated to support him. Let him have his fling and let him make his own life.

Here at Bogleheads you can get both financial advice and gratuitous marriage counseling. :lol:
by kenbrumy
Sat Sep 18, 2010 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Power of attorney for parent with unpaid bills?
Replies: 16
Views: 3303

I don't see much use for the "springing" power of attorney for financial matters. The bank will want proof of incapacity, so it may be easier than getting a guardianship through the court, but not much. Banks can be somewhat difficult about durable powers, too, so you might want to talk to the branch manager personally when you take them a copy of the document, just to make sure. If you worry about giving someone a durable poa before you're incapacitated, you can leave the only copy with your attorney, who would at least ask a few questions and probably contact you before handing it over. Just make sure everyone knows it exists, and where. I would think, though, that you're more likely to be taken advantage of after you've become...
by kenbrumy
Sat Sep 18, 2010 2:09 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri on Morningstar: The Power of Passive Investing
Replies: 59
Views: 9012

Mel Lindauer wrote:
dnaumov wrote:I find it slightly funny that the comments to the article criticise Rick, while simultaneously failing to provide ANY actual arguments whatsoever.
That's the typical old "gored-ox" response. Very similar to the responses I got from the insurance industry to my Forbes columns on annuities.
I'm still waiting for you to be "hit." :lol:
by kenbrumy
Sat Sep 18, 2010 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Power of attorney for parent with unpaid bills?
Replies: 16
Views: 3303

This seems to have descended into a description of what and when a DPOA is in effect. State laws differ but there are some similarities I am sure. I'll discuss Texas' law and the specifics that affected my wife's DPOA over her parents. A DPOA can be immediate where an individual signs over to another individual the power to conduct business in their name. It can be specific such as closing on a piece of property or general where they give total power to that individual to act in their behalf. The current recommendation from most estate attorney's is to appoint someone as your DPOA if a doctor certifies you as not being competent to make decisions on your own behalf. The DPOA is usually kept with the will or the copy given to the person that...
by kenbrumy
Sat Sep 18, 2010 10:17 am
Forum: Investing - Theory, News & General
Topic: Pension Funds Stick to 'Unrealistic' Return Assumptions
Replies: 11
Views: 1713

Thanks for the link. Given the agressive asset allocation of most pension funds, 7-8% isn't a completely unrealistic goal, though they will need some luck. Nick This is a reasonable expected return without forcing it to be inflation adjusted based on the last century of data. I don't know of any private pension that is inflation adjusted which is why my pathetic pension checks keep getting smaller and smaller in inflation adjusted dollars. Forcing these funds to use lower returns based on the last 10 years isn't really justified unless you have a better crystal ball than I do. Government bodies are much more generous since they are spending our money. They are almost universally inflation adjusted and frequently have benefit "kickers&...
by kenbrumy
Sat Sep 18, 2010 8:53 am
Forum: Investing - Theory, News & General
Topic: Pension Funds Stick to 'Unrealistic' Return Assumptions
Replies: 11
Views: 1713

Ron wrote:What's a pension :lol: ???
Those are those itty-bitty checks I will soon start receiving to cover my wine bill - as long as I stick to the Two Buck Chuck.
by kenbrumy
Sat Sep 18, 2010 8:52 am
Forum: Investing - Theory, News & General
Topic: Pension Funds Stick to 'Unrealistic' Return Assumptions
Replies: 11
Views: 1713

I always thought that expecting high returns allowed corporations to reduce their contributions to the pension fund and report higher profits. And, who knows? Higher returns might appear and you're golden. If low returns persist, the government will step in and bail out the pensioners. But, maybe I'm just a Pollyanna. You are definitely a Pollyanna. The government is the worst offender. The Feds can always print money so they can cover their very generous pensions as long as taxpayers don't attack with pitchforks over the deficits. State and local government entities have been playing a continuous shell game where they, for the most part, haven't worried at all about the size of their underfunding. Underfunded pensions in the private secto...
by kenbrumy
Fri Sep 17, 2010 8:41 am
Forum: Personal Investments
Topic: Annuitizing the home
Replies: 18
Views: 3086

Just to reflect on the idea that you need to be near your children/grandkids. Every move became more difficult as they aged (physically) as they "followed their family", along with greatly reducing their assets. I'm not saying they were wrong to follow their hearts, but sometimes you don't know what the results will be until it's too late. - Ron I agree. I've seen people do this same path. I didn't know enough about their financial situation but you have to be pretty dense to not realize every move costs a significant amount of money in transaction costs and moving costs. I think a lot of people forget (or don't care) that their children and grandchildren don't exist for the sole purpose of providing for their entertainment and s...
by kenbrumy
Fri Sep 17, 2010 7:43 am
Forum: Personal Investments
Topic: Annuitizing the home
Replies: 18
Views: 3086

I'll second YDNAL's comment about putting 40% of your net worth into a single, illiquid asset. As for reverse mortgages, I've always felt that anyone that feels they need a reverse mortgage to stay in their home should probably not be staying there. You've also said that buying the new home will reduce your spending in other areas. You are effectively choosing to be house poor. Why? I suspect there are two drivers. One is "near children." That's a driver for me and my wife in a retirement location but kids get new jobs and move. The other is "ownership" which makes you or you wife adverse to renting. Another factor may be "amenity filled" which I suspect is a "seniors only" subdivision. Typically, one...
by kenbrumy
Sun Sep 12, 2010 3:36 pm
Forum: Investing - Theory, News & General
Topic: "The Retirement Challenge--Sink or Swim" -- A Gem
Replies: 24
Views: 7825

Re: Frank Armstrong--a personal story

Great site, great post. I always learn from Taylor's posts & I feel good to see him post more often again. Regards Hi Rajsx: Thank you for your kind words. You may be surprised to learn that Frank Armstrong is responsible for much of what I know about investing. In the 80s and 90s I tried to read everything I could about personal investing. One day, while perusing books in the Financial Section in our Border's bookstore, a tall, handsome gentleman observed my interest and asked "What are you looking for?" I replied, "A good book about investing." He answered, "Read Capital Ideas by Peter Bernstein. He handed me the book from the shelf--and then walked away. I bought it. It was not until several year's later tha...
by kenbrumy
Sun Sep 12, 2010 8:32 am
Forum: Personal Investments
Topic: frozen in place with treasuries-please help !
Replies: 40
Views: 5276

The cleanest way to move money is to open an account and fill out the transfer paperwork with the new brokerage account. They will then process the transfer and can move everything "in kind" so you'll have your treasuries magically show up over there one day. Unfortunately, your current broker won't like seeing a million bucks plus leave their clutches so you can expect them to call and try to talk you out of it and them to drag their feet. You may have to prod them a little to get the move done. You can look at the fees and penalties on your variable annuities. Vanguard may be able to help you transfer them to a lower fee option or your best bet may be to just cash them in. Any FA or broker that puts a VA into an IRA is just tryi...
by kenbrumy
Fri Sep 10, 2010 5:07 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri takes on high-cost advisors on Forbes
Replies: 72
Views: 11605

GaryPantaloukas wrote: Might be worth .10%. But I doubt it. Want somebody to manage your emotions? Go see a shrink.
I know a lot of people that bailed out of equities in early 2009 and many of them had financial advisers. I barely managed to keep contributing to equities in my retirement plans and somehow managed to put money into our Roths. It wasn't easy.
by kenbrumy
Fri Sep 10, 2010 2:59 pm
Forum: Investing - Theory, News & General
Topic: Laura's latest Forbes column
Replies: 9
Views: 2878

Taking "taxes" out of the kids' allowance is cold, cold, cold.
by kenbrumy
Fri Sep 10, 2010 12:56 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri takes on high-cost advisors on Forbes
Replies: 72
Views: 11605

yobria wrote:
natureexplorer wrote:Other than Rick Ferri, which advisors fall into the category of charging less than 0.3% for a portfolio of $1,000,000?
Oh there are plenty - just use one who charges by the hour (like most service providers).

Nick
I charge by the hour but my financial advice is free. :lol:
by kenbrumy
Fri Sep 10, 2010 12:52 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri takes on high-cost advisors on Forbes
Replies: 72
Views: 11605

The article seems to be a rehash of a prior thread Rick started a week or so ago. That thread got the same sort of comments that this one has by many of the same people. That thread eventually got closed and this one is probably about ready too. Low cost index funds have been shown by study after study to have a better performance than the overwhelming number of actively managed funds. Typically, a diversified index portfolio is in the top 80% of funds by any measure. Financial advisers that "manage" people's money have repeatedly been shown to provide little, if any, value to most investors other than to enforce a certain amount of discipline in maintaining a portfolio. There are, however, situations where I would recommend peopl...
by kenbrumy
Tue Sep 07, 2010 6:00 pm
Forum: Investing - Theory, News & General
Topic: Time to buy TIPS?
Replies: 15
Views: 2972

I sold all my TIPS. The Fed is manipulating interest rates. They can't do this forever. I made a bundle when the rates fell. I'll buy back in when their efforts end or fail. One of which is inevitable.
by kenbrumy
Mon Sep 06, 2010 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: question on severance and starting new job
Replies: 15
Views: 3548

teacher_in_tx wrote:In case I missed the obvious, if she stays until the end, is she paid in full for her banked vacation time?

-mike
It was in the OP post. It's also Federal law. Vacation time is "earned" so she'll get paid for it Sick pay isn't so if his wife has any it's a use it or lose it proposition unless the employer has a separate policy.
by kenbrumy
Mon Sep 06, 2010 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: question on severance and starting new job
Replies: 15
Views: 3548

I've been in a similar situation. I suggest you take a vacation early in the process if you really want to take a vacation. Don't try to play games with vacation time to start the new job early. Bless your wife's new employer for their kindness. What will probably happen is that your wife (and most everyone else) will have transitioned well before the cutoff date. When the employer sees this, they will probably offer to let people leave early with both their severance and retention bonus. They have to offer. If someone is seen pushing for it, some AH HR person will look at getting a gold star by stiffing them. I had one company tell us we could leave whenever our boss "certified" we had completed our duties. We got paid through th...
by kenbrumy
Mon Sep 06, 2010 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: A simple will .... not!
Replies: 17
Views: 3990

Laws vary considerably between the US states. You list yourself as being in France. GET A LAWYER! Don't trust your assets to how well Quicken happens to work in your situation.

I'm in the process of watching my children marry and start their own families. At this point, there's no compelling reason to not divide it equally between our children since it's very likely one of us will survive for another couple of decades. In reflection on the piss poor job my in-laws did with their estate, I'm tempted to evaluate changing the will and leave the bulk of the estate to be equally divided amongst the grandchildren. Since I don't know how many or if any have special situations, I think it's too early to try to get too clever.
by kenbrumy
Mon Sep 06, 2010 7:58 am
Forum: Personal Consumer Issues
Topic: There are many roads to Dublin.....
Replies: 18
Views: 5640

Basically, all the better roads in Ireland seem to be designed to get you to or from Dublin. It gets annoying sometimes when you want to go somewhere else and all you have available are glorified cow paths. Have fun and enjoy the sheep and beer.
by kenbrumy
Sun Sep 05, 2010 6:53 am
Forum: Personal Investments
Topic: Finding a financial advisor
Replies: 30
Views: 4676

Re: Finding a financial advisor

5oclocksomewhere wrote:How do I find a good financial planner that doesn't have conflicts of interest by selling products? And how do they charge for services? Thanks!
Go directly to the nearest mirror. Take a good look at your financial adviser. I suggest you start reading and learn enough to do it yourself. It isn't really hard.

My advice would only change if you have complicated or extenuating situations in your personal or financial life.
by kenbrumy
Sat Sep 04, 2010 9:02 am
Forum: Personal Consumer Issues
Topic: Is it OK to wear a black shirt to a wedding?
Replies: 51
Views: 27337

I suspect that if you feel you have to ask it isn't acceptable.
by kenbrumy
Thu Sep 02, 2010 5:15 pm
Forum: Personal Investments
Topic: Just a quick question
Replies: 19
Views: 3031

Things could go up or down. No one knows. History says that buying after a major drop works out well. It might or it might not.

Unfortunately, no one here can tell the future any better than anyone else.

I started buying in mid-1982. People said I was crazy. I'm doing ok now.
by kenbrumy
Wed Sep 01, 2010 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Are professional licensing tests and fees tax-deductible?
Replies: 11
Views: 16819

Re: Are professional licensing tests and fees tax-deductible

I was wondering if anyone knew professional licensing tests fees, any test prep program fees were considered tax-deductible as "work-related?" Specifically referring to my USMLE (United States Medical Licensing Exam) and my specialty boards exam fees. Also any books/test prep programs associated with them. I'm sure the same question applies to CPA, Law bar exam fees, etc.. Thanks! See IRS pub 535 P 43 col 3 and IRS pub 970. Generally expenses that are incurred to meet the minimum requirements of your present trade or business are not deductible. I dont know how that rule applies to doctors who graduate from med school and then take many different specialty exams. I would assume that once you have an MD and are licensed to practic...
by kenbrumy
Tue Aug 31, 2010 5:11 pm
Forum: Investing - Theory, News & General
Topic: High-fee Passive Advisors Gave Me the Boot!
Replies: 87
Views: 13999

GaryPantaloukas wrote:Rick is overcharging. Why pay him?

Btw - what is a CFA? I've heard of CFA charterholders before, but not CFA's.

Also, this thread has turned into a marketing thread for Rick peddling his services. Surprised this is allowed.
Probably because 90+% of the people on this forum know what Rick does and 90+% of the people don't use financial advisers. Of course, I could be wrong with both of those estimates.

Just as a check.... Anyone need the services of a professional engineer? :D
by kenbrumy
Tue Aug 31, 2010 3:50 pm
Forum: Investing - Theory, News & General
Topic: High-fee Passive Advisors Gave Me the Boot!
Replies: 87
Views: 13999

Value_Investor wrote:Anyone that thinks that doctors and lawyers do not charge what the market will bear is in serious need of some economics lessons.
Add engineers, plumbers, electrians.....

I could go on and on. Haven't most of us quit a wage-slave job at one time or another for more money?
by kenbrumy
Tue Aug 31, 2010 7:13 am
Forum: Investing - Theory, News & General
Topic: High-fee Passive Advisors Gave Me the Boot!
Replies: 87
Views: 13999

Establishing a relationship with any fee-only adviser is a very individual choice. I’ll leave it at that. Evelyn I think she made my point above. The high fee advisers may suck $10,000 per year out of a $1MM portfolio (robbery in my opinion) but with that comes expectations. She wanted instant replies to new client inquiries and probably wants a bit more handholding than Rick's typical client. In my years of counseling people to leave their rip-off advisers, I get people to first actually see how much they have paid in fees to their advisers and mutual funds. Then I try to get them to look at a multi-year return of a balanced portfolio against their adviser's performance. In times of economic distress people are more open to saving those f...
by kenbrumy
Mon Aug 30, 2010 5:56 pm
Forum: Investing - Theory, News & General
Topic: High-fee Passive Advisors Gave Me the Boot!
Replies: 87
Views: 13999

I think if a person is in a business that competes in a market where there are alternatives, then that person should be charging what the market will bear. That's not what members of professions are supposed to do. Doctors, lawyers, engineers, investment advisors, etc. have a moral and in most cases a legal duty to put their client's interests first. It is in the client's best interest that you make a reasonable living so there will be no impediments to serving them properly, but it is not in their interest to be charged anything more and certainly not "what the market will bear." As a professional engineer, I'll disagree with you. There is a market rate for engineering services that varies widely between disciplines. This also v...
by kenbrumy
Sun Aug 29, 2010 4:09 pm
Forum: Investing - Theory, News & General
Topic: High-fee Passive Advisors Gave Me the Boot!
Replies: 87
Views: 13999

Mr. Ferri does not know me but I called him a few years ago to be a potential client. I'm in the medical field and have gotten several calls from adivsors to use their services. Prior to reading the boglehead website and books, I felt overwhelmed about investing the right way and turned to Rick. After giving me some useful guidelines, he politely told me that I knew enough and did not need his services. I bought his asset allocation book after that conversation (and of course read the forum) and have felt much more secure about the Boglehead-way. Rick, I appreciate your integrity and your character in turning me away. You took the moral high-road instead of chasing the almighty dollar. Rick does an excellent job of building up the knowledg...
by kenbrumy
Sun Aug 29, 2010 11:37 am
Forum: Investing - Theory, News & General
Topic: High-fee Passive Advisors Gave Me the Boot!
Replies: 87
Views: 13999

IMO, an advisor should charge what's fair, not what the market will bear. Rick Ferri It's hard for anyone to know what is "fair." I agree that 1% is horrible but there is still the magic of market forces. Unfortunately, many people don't have a clue what they're buying with their investment adviser fees. The one's that do generally don't use FAs unless they have extremely complicated situations or make periodic uses for specific situations like you would a lawyer. I'm personally very plain vanilla financially. I have a Bogleheadish asset allocation and have a plan for going forward. I'd love to give someone a fee to really tell me what the future holds so I could only buy when the market goes up and sell before it falls. I'd like...
by kenbrumy
Sun Aug 29, 2010 7:36 am
Forum: Investing - Theory, News & General
Topic: Help With Annuity/IRA Question
Replies: 5
Views: 2426

I agree the answer is probably yes but you would need to contact an IRA provider. Unfortunately, I've seen people get sold annuities inside their IRAs but they are usually the variable type. I don't recall anyone with a SPIA. I do see four problems. First, you said she doesn't trust family members so why would she listen to you now. Second, even if she bought an annuity she would have the later ability to sell it to one of the "we buy structured settlements and annuities" firms for pennies on the dollar but she'd have "her money now." Third, there is a requirement for minimum withdrawals from inherited IRAs. That could be a problem with level payments. Fourth, you say she'd disabled so a lifetime annuity in her case migh...
by kenbrumy
Fri Aug 27, 2010 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need disability insurance?
Replies: 6
Views: 1433

Whether you need disability insurance depends entirely on how you'll support yourself if you can't work. I have disability with my employer but I don't really need it in my financial position. I don't need what they give me for free but if I really needed it, I'd consider getting a policy outside of my employer. Disability insurance isn't cheap and the cost will be determined by numerous factors. One is how long do you have to be disabled before benefits start. The definition of "disabled" is also important. Is it total disability so that you can't do any occupation regardless of pay or is it your current profession? Remember you have a limited disability policy in the form of social security. The benefit is relatively small with ...
by kenbrumy
Tue Aug 24, 2010 2:41 pm
Forum: Personal Investments
Topic: Retire Early
Replies: 43
Views: 6527

unfortunately i will have to buy my own health insurance. i can buy some from my former employer but funny it is more expensive that what i have found shopping around. to cover my wife any myself should be about $700 a month unfortunately but what can you do Don't bad mouth your employer's plan too soon. There are very few people over 50 that will qualify for the low rates you can get quoted for private insurance. Before you get it, you have to get through the medical underwriting. I've not known of anyone in Texas to get private insurance despite several not having anything resembling a preexisting condition except being over 50. Everyone has been forced into the Texas high risk pool. A high deductible plan can easily run $15,000 per year...
by kenbrumy
Tue Aug 24, 2010 1:44 pm
Forum: Personal Investments
Topic: Retire Early
Replies: 43
Views: 6527

You are in a similar situation as I am. There's no reason you can't do something like my plan. I have a "sinking fund" in my portfolio that will be used to bridge my gap until Medicare and social security. This is a fixed dollar amount in bonds and it will be gone when I start social security. This provides a minimum retirement spending equal to my pension and eventual social security check. I then have a reserve which will be used to provide a higher retirement lifestyle (but still basic) and for LTC if needed. Lifestyle would be reduced to avoid depleting this fund. The remaining portfolio is intended to cover travel and luxuries. If the markets tank, this could go away and I accept that. Right now I'm 60% bonds/40% equities. If...
by kenbrumy
Mon Aug 23, 2010 3:42 pm
Forum: Investing - Theory, News & General
Topic: For those who follow Ric Edleman's show...
Replies: 22
Views: 4501

why does he keep talking about Long Terem Care? He has a concern that this will be our biggest expense moving forward and we somehow need to invest our way through it. Or did I miss something else he is trying to tell us about the matter?? It's a big deal to the "middle savers." Other than that group it doesn't add much value IMHO. If you have less than $200,000 you're probably better off trying to save more money because trying to pay for LTC insurance will probably make saving difficult and the first spouse might and the second definitely would end up on Medicaid anyway. In the $200,000 to $500,000 range, LTC provides value for the remaining spouse when the other one goes into LTC. Over $500,000 would pretty much cover one spou...
by kenbrumy
Sun Aug 22, 2010 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: 2011 Tax Changes
Replies: 1
Views: 1065

2011 Tax Changes

This really isn't a political posting although I can see how it might develop from the post. That's not the intent so please don't go there with your replies.

I was talking with someone I used to work with. He's in a significant managerial position with a large company. He said that next year the value of our medical coverage will be included in our gross pay and will become taxable. Is this true?

Other than the likely demise of the Bush tax cuts and inheritance taxes coming back in at $1MM, does anyone know of anything else?

The AMT has been band-aided for years. I'm assuming something will get cobbled together again in December.
by kenbrumy
Sun Aug 22, 2010 12:50 pm
Forum: Investing - Theory, News & General
Topic: Confirmed Hindenburg Omen on 8/20 - anybody watching?
Replies: 293
Views: 59194

Re: Confirmed Hindenberg Omen on 8/20 - anybody watching?

No. Technical analysis exists to make astrologists look good. I really wonder if people who describe the stock market using expressions like head and shoulders formation, hindenburg omen, waves, oscillations, etc etc ever stop for a minute and realize how ridiculous they sound. You only realize how silly they sound when you realize how useless technical analysis is. I'm a "math person" and a reformed technical analyst. "Math people" are easily suckered into TA because it plays to our strength and we know most other people "don't get it." We think we have an advantage. I eventually learned that TA was a wonderful way of describing what happened and sounding very intelligent about it. Unfortunately, it never see...