Search found 2756 matches

by oldfort
Sat Nov 20, 2021 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella Uninsured Motorist Coverage
Replies: 56
Views: 4381

Re: Umbrella Uninsured Motorist Coverage

What if the uninsured or underinsured party is not a motorist? For example, someone in my family gets a head injury at someone else’s pool and needs lifelong care. If the person at fault doesn’t have a homeowners/umbrella policy with high enough limits to cover the lifelong cost of care, would my insurance cover this if I have uninsured motorist coverage? If not, what insurance would cover this scenario? PURE offers something called: Uninsured Personal Liability Coverage. Members can purchase up to $1 million of coverage for protection against non-automobile related incidents involving individuals who are not adequately insured. Claim Scenario: A high-level executive was seriously injured as a result of a slip and fall on his neighbor’s pr...
by oldfort
Thu Nov 18, 2021 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella liability - is it necessary?
Replies: 135
Views: 45319

Re: Umbrella liability - is it necessary?

I would very respectfully suggest that you re-read the posts to which you're replying, as your response completely misstates the point made in the post. Yes, there is a business debt exception to the means testing under Chapter 7, but you have to qualify for it and, even if you do, you remain subject to the other requirements, such as the good faith requirement. Even if you do qualify for Chapter 7, as I already pointed out above, Chapter 13 or, for wealthier individuals, Chapter 11, can be preferable, as people generally want to try to keep some of their possessions. Here's a simple article that summarizes a case where good faith came into play, and there are many other ones out there (https://www.abi.org/feed-item/the-business-debt-looph...
by oldfort
Wed Nov 17, 2021 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella liability - is it necessary?
Replies: 135
Views: 45319

Re: Umbrella liability - is it necessary?

Most debts are discharged, so the wage garnishment will cease permanently. Chapter 7, if you qualify for it, is a liquidation, which means that all your exposed assets are wiped out. Unless you qualify for an exemption, Chapter 7 has means testing, so that generally, 6 figure earners won't qualify for it. Even if they do, a Chapter 13 or, for wealthier individuals, Chapter 11 can be more advantageous, as people generally want to try to keep some of their possessions. Once again, there is no scenario where an individual with a nice taxable Vanguard account, other unprotected assets (a car, a house in a state that doesn't offer substantial protection for primary residences, etc...) and good income gets hit with an excess verdict, shrugs his ...
by oldfort
Wed Nov 17, 2021 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella Uninsured Motorist Coverage
Replies: 56
Views: 4381

Re: Umbrella Uninsured Motorist Coverage

So who needs to buy this extra umbrella uninsured/underinsured coverage? Why is it offered at all? 1. Most disability policies won't completely replace your lost income. 2. At least when I shopped for disability insurance, you couldn't buy above a certage percentage of your income. It might be difficult to get meaningful disability insurance coverage for people who don't have earned income, such as a stay-at-home spouse or kids. 3. My understanding is health insurance is designed to make you better. If you are a quadriplegic after a car accident and need 24/7 skilled nursing for the rest of your life, I don't think health insurance would cover your nursing home. Obviously at a sufficient level of wealth, you could self-insure almost anythi...
by oldfort
Wed Nov 17, 2021 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella liability - is it necessary?
Replies: 135
Views: 45319

Re: Umbrella liability - is it necessary?

I don’t know what you mean by exposed income. "Exposed income" is income that is exposed to judgment creditors, as opposed to the income stream that is statutorily protected, such as social security/SSI payments, disability payments, survivor's payments, etc... The reason people file a Chapter 7 bankruptcy is to stop wage garnishment. I would very respectfully suggest that you look up the Chapter 7 qualifications and requirements as well as its downsides, as things work very differently from the way you understand them to be. Okay, so from my search here's what the ABI says about Chapter 7: Fortunately, the bankruptcy code provides an equally powerful countermeasure. Once a bankruptcy petition is filed, the powerful “automatic st...
by oldfort
Wed Nov 17, 2021 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella liability - is it necessary?
Replies: 135
Views: 45319

Re: Umbrella liability - is it necessary?

I'v always wondered... If someone has, say, all of their money in a nice, safe, 403b ERISA account, that's great. But what happens when they need to remove money so they can spend it on living expenses? Is the money vulnerable while being parked temporarily in a checking account or such? RM Assuming you were successfully sued, the verdict exceeded your non-exempt assets, and someone tried to garnish your checking account, most people would file bankruptcy to discharge the remaining debts. As people have previously pointed out to you in other threads, bankruptcy doesn't work this way and never has. To the extent that you have a substantial exposed income stream and/or exposed assets, you simply don't get to wipe out judgments and other unse...
by oldfort
Tue Nov 16, 2021 10:06 pm
Forum: Investing - Theory, News & General
Topic: "How to Retire With $2 Million On a $50,000 Salary"
Replies: 195
Views: 27655

Re: "How to Retire With $2 Million On a $50,000 Salary"

Kenkat wrote: Sun Nov 14, 2021 2:28 pm Yes but the person making $50,000 / yr. is probably not going to be making that same salary for the next 40 years either.
Median income for non-family households is $40,464. Having a career ceiling of $50,000 a year in today's dollars is the most realistc part of the scenario.
by oldfort
Tue Nov 16, 2021 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella liability - is it necessary?
Replies: 135
Views: 45319

Re: Umbrella liability - is it necessary?

ResearchMed wrote: Thu Nov 04, 2021 5:22 pm I'v always wondered... If someone has, say, all of their money in a nice, safe, 403b ERISA account, that's great.
But what happens when they need to remove money so they can spend it on living expenses?
Is the money vulnerable while being parked temporarily in a checking account or such?

RM
Assuming you were successfully sued, the verdict exceeded your non-exempt assets, and someone tried to garnish your checking account, most people would file bankruptcy to discharge the remaining debts.
by oldfort
Tue Nov 16, 2021 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella liability - is it necessary?
Replies: 135
Views: 45319

Re: Umbrella liability - is it necessary?

talzara wrote: Tue Nov 16, 2021 6:09 pm
azanon wrote: Tue Nov 16, 2021 7:12 am Now don't take that the wrong way, I'm not claiming an umbrella policy is expensive in an of itself, but I am saying it's expensive relative to the chance you'll use it (~0.0000x%).
You have underestimated the risk by 5 orders of magnitude. Umbrella insurance has a claim frequency of at least 0.03% a year. Over a lifetime of driving, "the chance you'll use it" is about 2%.
If you're going to look at lifetime risks, if you bought umbrella insurance for 70 years, you should also look at lifetime costs: 70*the annual cost of umbrella insurance or if you want to take the full analysis what would you have if you invested your umbrella premiums for 70 years.
by oldfort
Mon Nov 15, 2021 9:23 pm
Forum: Personal Consumer Issues
Topic: Post military planning: Best US city…in 5-10 years?
Replies: 36
Views: 5436

Re: Post military planning: Best US city…in 5-10 years?

five2one wrote: Tue Oct 26, 2021 7:27 am Also, I’ve thought about government civilian (GS-13 would be pretty easy to get) but not sure I can settle for lower income potential in exchange for more stability. I’m not opposed to contract work (will have healthcare benefits) but really need to come out gate at least at $100k and desire to hit $150-250k figures in sub 10 years.
Thanks!
If you want $150k-$250k, forget about government jobs. A GS-15 in DC caps out at 172,500. A GS-14 in DC maxes out at 159k. If you are in a lower cost-of-living place, a GS-14 won't break 150k.
by oldfort
Mon Nov 15, 2021 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: "If you're not getting a raise that keeps up with inflation, you're losing money YoY"
Replies: 86
Views: 9355

Re: "If you're not getting a raise that keeps up with inflation, you're losing money YoY"

Folks, I do not understand why anyone think this is something new and/or different. In the 1989/1990, the average starting stay for a freshly graduated engineer was around 26K to 30K. In 2020, the average starting stay for a freshly graduated engineer was around 50K to 60K. So, in 30 years, the starting salary double. As per the rule of 72, 72/30 = 2.4% per year. It did not kept up with inflation. The engineers are supposedly one of the highly paid degree. Almost all other majors did a lot worse over this 30 years period. KlangFool The starting salary for a CS major is $85,766. $50-$60k might be low. https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/salaries-for-college-graduates-climb-amid-labor-shortages.aspx Please not...
by oldfort
Mon Nov 15, 2021 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: "If you're not getting a raise that keeps up with inflation, you're losing money YoY"
Replies: 86
Views: 9355

Re: "If you're not getting a raise that keeps up with inflation, you're losing money YoY"

Folks, I do not understand why anyone think this is something new and/or different. In the 1989/1990, the average starting stay for a freshly graduated engineer was around 26K to 30K. In 2020, the average starting stay for a freshly graduated engineer was around 50K to 60K. So, in 30 years, the starting salary double. As per the rule of 72, 72/30 = 2.4% per year. It did not kept up with inflation. The engineers are supposedly one of the highly paid degree. Almost all other majors did a lot worse over this 30 years period. KlangFool The starting salary for a CS major is $85,766. $50-$60k might be low. https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/salaries-for-college-graduates-climb-amid-labor-shortages.aspx Please not...
by oldfort
Mon Nov 15, 2021 8:05 pm
Forum: Investing - Theory, News & General
Topic: "How to Retire With $2 Million On a $50,000 Salary"
Replies: 195
Views: 27655

Re: "How to Retire With $2 Million On a $50,000 Salary"

dukeblue219 wrote: Mon Nov 15, 2021 6:48 pm
stoptothink wrote: Mon Nov 15, 2021 2:32 pm My younger sister rents an apartment (with two roommates) literally a block away from my home, in an area that is certainly not San Francisco but significantly above the median for the country in COL. She saves a significant part of her ~$40k/yr income (she's a 2nd year, 2nd grade teacher)
Crazy part of this is that school teachers in some parts of the US are still paid $40k/year, and don't give me the "it's only 10 months of work" thing.
The federal government will start someone with a BA/BS at a GS-7, which in a MCOL area might be $44k, and they don't get their summers off.
by oldfort
Mon Nov 15, 2021 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: "If you're not getting a raise that keeps up with inflation, you're losing money YoY"
Replies: 86
Views: 9355

Re: "If you're not getting a raise that keeps up with inflation, you're losing money YoY"

KlangFool wrote: Mon Nov 15, 2021 11:27 am Folks,

I do not understand why anyone think this is something new and/or different.

In the 1989/1990, the average starting stay for a freshly graduated engineer was around 26K to 30K. In 2020, the average starting stay for a freshly graduated engineer was around 50K to 60K. So, in 30 years, the starting salary double. As per the rule of 72, 72/30 = 2.4% per year. It did not kept up with inflation. The engineers are supposedly one of the highly paid degree. Almost all other majors did a lot worse over this 30 years period.

KlangFool
The starting salary for a CS major is $85,766. $50-$60k might be low.

https://www.shrm.org/resourcesandtools/ ... tages.aspx
by oldfort
Mon Nov 15, 2021 6:47 pm
Forum: Investing - Theory, News & General
Topic: "How to Retire With $2 Million On a $50,000 Salary"
Replies: 195
Views: 27655

Re: "How to Retire With $2 Million On a $50,000 Salary"

This rather optimistic analysis also carefully avoids mentioning income tax or how much money you might need to cover living expenses. If you save $7500 / year as 15% of your gross pre-tax salary, your effective tax rate might be around 21%, so that's $10.5k in taxes, leaving $50k gross - $7.5k savings - $10.5k tax = $32k / year remaining for living expenses. If you save $7500 / year as 15% of your net post-tax salary, then you'd need $50k net salary after tax, which might require around $66.4k gross salary at around 24.6% effective income tax. That leaves $42.5 k / year for living expenses. Are Australian tax rates so much higher? An effective tax rate of 21% on the base salary of $50k (not the AGI after reducing it by the retirement savi...
by oldfort
Sun Nov 14, 2021 10:31 pm
Forum: Investing - Theory, News & General
Topic: "How to Retire With $2 Million On a $50,000 Salary"
Replies: 195
Views: 27655

Re: "How to Retire With $2 Million On a $50,000 Salary"

This rather optimistic analysis also carefully avoids mentioning income tax or how much money you might need to cover living expenses. If you save $7500 / year as 15% of your gross pre-tax salary, your effective tax rate might be around 21%, so that's $10.5k in taxes, leaving $50k gross - $7.5k savings - $10.5k tax = $32k / year remaining for living expenses. If you save $7500 / year as 15% of your net post-tax salary, then you'd need $50k net salary after tax, which might require around $66.4k gross salary at around 24.6% effective income tax. That leaves $42.5 k / year for living expenses. Are Australian tax rates so much higher? An effective tax rate of 21% on the base salary of $50k (not the AGI after reducing it by the retirement savi...
by oldfort
Sun Nov 14, 2021 7:54 pm
Forum: Investing - Theory, News & General
Topic: "How to Retire With $2 Million On a $50,000 Salary"
Replies: 195
Views: 27655

Re: "How to Retire With $2 Million On a $50,000 Salary"

Yes but the person making $50,000 / yr. is probably not going to be making that same salary for the next 40 years either. One could write a more complicated article that would grow wages by some percentage as well and discuss inflation adjusted final values but the conclusion would be the same. Bogleheads would enjoy that but the average person’s eyes would glaze over. Articles do people a disservice when they create the impression people can expect 8% real rates of return, whether deliberately or by being ambiguous. For a balanced portfolio, I would plan on a 2-3% real rate of return for a balanced portfolio of stocks and bonds. The article never claimed an 8% real return. Here’s what was said: Finally, let's go heavy on stocks in your re...
by oldfort
Sun Nov 14, 2021 4:06 pm
Forum: Investing - Theory, News & General
Topic: "How to Retire With $2 Million On a $50,000 Salary"
Replies: 195
Views: 27655

Re: "How to Retire With $2 Million On a $50,000 Salary"

Yes but the person making $50,000 / yr. is probably not going to be making that same salary for the next 40 years either. One could write a more complicated article that would grow wages by some percentage as well and discuss inflation adjusted final values but the conclusion would be the same. Bogleheads would enjoy that but the average person’s eyes would glaze over. Articles do people a disservice when they create the impression people can expect 8% real rates of return, whether deliberately or by being ambiguous. For a balanced portfolio, I would plan on a 2-3% real rate of return for a balanced portfolio of stocks and bonds. For 40 or 50 years? That's incredibly low. 30-year treasury yields are 1.95%. I'm expecting after-inflation ret...
by oldfort
Sun Nov 14, 2021 3:48 pm
Forum: Investing - Theory, News & General
Topic: "How to Retire With $2 Million On a $50,000 Salary"
Replies: 195
Views: 27655

Re: "How to Retire With $2 Million On a $50,000 Salary"

Kenkat wrote: Sun Nov 14, 2021 2:28 pm Yes but the person making $50,000 / yr. is probably not going to be making that same salary for the next 40 years either. One could write a more complicated article that would grow wages by some percentage as well and discuss inflation adjusted final values but the conclusion would be the same. Bogleheads would enjoy that but the average person’s eyes would glaze over.
Articles do people a disservice when they create the impression people can expect 8% real rates of return, whether deliberately or by being ambiguous. For a balanced portfolio, I would plan on a 2-3% real rate of return for a balanced portfolio of stocks and bonds.
by oldfort
Sun Nov 14, 2021 2:07 pm
Forum: Investing - Theory, News & General
Topic: "How to Retire With $2 Million On a $50,000 Salary"
Replies: 195
Views: 27655

Re: "How to Retire With $2 Million On a $50,000 Salary"

Kenkat wrote: Sun Nov 14, 2021 1:37 pm The article did not state 8% real returns, just 8% returns. Yes, the $2,000,000 ending value would be worth less after inflation but it would still be a substantial sum.

In addition, a person making $50,000 / yr. at 55 wouldn’t need to save $2,000,000.

You are correct that social security is an important part of most American’s retirement income, but the article is not really being misleading about what can be saved if you start early and invest consistently. It is overall good advice, regardless of the exact numbers involved.
If the $2 million isn't adjusted for inflation, the article is misleading. You can retire with $2 million in 40 years, which at a 4% inflation rate, would be worth $400k in today's dollars.
by oldfort
Sat Nov 13, 2021 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Pay raises for 2022
Replies: 421
Views: 63188

Re: Pay raises for 2022

I expect 2.7%
by oldfort
Sat Nov 13, 2021 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: "If you're not getting a raise that keeps up with inflation, you're losing money YoY"
Replies: 86
Views: 9355

Re: "If you're not getting a raise that keeps up with inflation, you're losing money YoY"

bhsince87 wrote: Fri Nov 12, 2021 9:01 pm I worked at a company where I went 15+ years without a raise.

70% of my pay was bonus based, and that was tied to the company's sales and profitability. The 30% (my salary) never changed.

I didn't have a problem with it. In fact, I really liked it. I'd love to find a deal like that again today.
In a case like this, it would make more sense to look at how your total compensation changed over time relative to inflation.
by oldfort
Sat Nov 13, 2021 9:12 pm
Forum: Personal Consumer Issues
Topic: How much for Tooth Fairy?
Replies: 111
Views: 8340

Re: How much for Tooth Fairy?

1 bitcoin
by oldfort
Sat Nov 13, 2021 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Sizing umbrella policy relative to various assets
Replies: 7
Views: 1262

Re: Sizing umbrella policy relative to various assets

dkoffer wrote: Sat Nov 13, 2021 2:17 pm 2. Roth IRA - not terribly well protected from creditors in CA
Federal law protects IRAs up to $1,362,800 in bankruptcy.
by oldfort
Sun Sep 26, 2021 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: To be or not to be - MD vs Computer science
Replies: 358
Views: 33078

Re: To be or not to be - MD vs Computer science

Computer Science from a good school will get you to big money quicker. You don't have to do start-up, we see many posts here of people in late 20's, early 30's earning 400-500k. We should start with realistic expectations... In non FANG places - this is not an attainable number for that label. x100 Two CS degrees, MS from 1 of the top 2 US colleges for such. Thinking you're just going to get a CS degree, then a job and be making $400-500k by 30 (or ever) is way, way off. Maybe, if you win the job lottery at a FAANG based in a VHCOL area. Even then, good luck. Meanwhile, most CS-degreed people will start in the $60-70k range and lucky to break $100k by 30, and $200k by 50. COL factors aside. Or to take it a step further, not everyone with a...
by oldfort
Mon Sep 13, 2021 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: "Asset Protection" for young teenage driver in the household
Replies: 90
Views: 9429

Re: "Asset Protection" for young teenage driver in the household

Which leads back off the tangent of 'asset protection is to deny people their rightful claims per a court of law' to reality. Which is, whether or not I proclaim myself virtuous (as in 'I have an ethical obligation to protect people I might hurt YMMV', translation 'I'm virtuous, maybe you're not' :happy ) our insurance co will fight like a cornered animal not to pay out anywhere near the policy limit if it at all possible. When it comes to insurance there is no connection between a lofty or other view of one's own morality and what the insurance co will charge as a premium, or do in case of a claim. And, when it comes to, for example, putting rental real estate assets in LLC(s) in part for asset protection, those looking disdainfully down ...
by oldfort
Sun Sep 12, 2021 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: "Asset Protection" for young teenage driver in the household
Replies: 90
Views: 9429

Re: "Asset Protection" for young teenage driver in the household

afan wrote: Sun Sep 12, 2021 6:44 pm But not only did someone have to defend it. They lost in court.

I do not have much confidence in the legal system. Losing the case hardly means that the defendant did anything wrong.
The didn't lose in court if the verdict was immediately thrown out by the judge.
by oldfort
Sun Sep 12, 2021 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: "Asset Protection" for young teenage driver in the household
Replies: 90
Views: 9429

Re: "Asset Protection" for young teenage driver in the household

afan wrote: Sun Sep 12, 2021 3:53 pm On the malpractice side, have you heard about the physician who was successfully sued on the claim that their actions lead to the plaintiff losing their psychic powers?
This is an urban legend meant to scare doctors. The verdict was immediately set aside on appeal, so the physician was not successfully sued. You're bringing a case from 1986. If frivolous lawsuits were common, you wouldn't have to talk about a case from 35-years-ago to find an example.
by oldfort
Sat Sep 11, 2021 11:50 pm
Forum: Personal Consumer Issues
Topic: The psychology of frugality when you no longer need to be frugal
Replies: 152
Views: 28828

Re: The psychology of frugality when you no longer need to be frugal

jimbob56 wrote: Mon Aug 30, 2021 2:29 am I could go on, but you get the picture. I know I'm not alone. Most billionaires continue working (usually very hard) even though most would probably be better off sitting on a beach and dumping what they've amassed into index funds.

Thanks for your perspectives!
I might quibble with some of the billionaire examples. Zuckerberg works as the CEO. Being CEO of the largest social media company in the world provides power and influence, similar to why some people go into politics. He's not doing it for the $25 million a year in fringe benefits or some sense of frugality.
by oldfort
Sat Sep 11, 2021 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: "Asset Protection" for young teenage driver in the household
Replies: 90
Views: 9429

Re: "Asset Protection" for young teenage driver in the household

Hogan773 wrote: Sat Sep 11, 2021 7:47 am Are there realistically car accidents where someone can successfully make the case that they deserve 25 million?
Yes, although the cases are extremely rare, the lifetime costs to provide lifetime care to a quadriplegic are astronomical. Economically, the awarded damages would usually be less if someone died than if they were paralyzed and needed lifetime medical and nursing home care. The other cases where you sometimes see extremely high verdicts are DUIs, where a North Dakota jury came back with a billion dollar verdict.

https://www.willistonherald.com/news/st ... 60118.html
by oldfort
Sat Sep 11, 2021 11:23 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA seriously? My kids see it?
Replies: 136
Views: 12291

Re: FAFSA seriously? My kids see it?

Hogan773 wrote: Fri Sep 10, 2021 2:02 pm And then already one of the schools he was accepted to is talking up FAFSA this and FAFSA that

My question is, DO THE KIDS HAVE ACCESS TO THE FAFSA FORM?
If you don't want to fill it out, don't. If you're going to submit to colleges, any college, of course your student should have access. FAFSA is submitted from the student's account and the student is attesting to the information being accurate.
by oldfort
Sat Sep 11, 2021 10:55 am
Forum: Personal Finance (Not Investing)
Topic: "Asset Protection" for young teenage driver in the household
Replies: 90
Views: 9429

Re: "Asset Protection" for young teenage driver in the household

gwe67 wrote: Sat Sep 04, 2021 10:02 am
snackdog wrote: Fri Sep 03, 2021 9:50 pm Another popular solution is to not provide teens vehicles and insurance. There is no urgency, so they can wait until they have grown, mature, employed and can afford their own wheels and insurance.
Good suggestion. And a lot of rideshare (Uber/Lyft) can be bought for what would have been spent on vehicles and insurance. Also takes joyriding/racing/DUI, etc. out of the risk equation.
Technically, you're supposed to be 18 to ride or request Uber or Lyft unless accompanied by an adult. Uber drivers are not supposed to accept unaccompanied, underage passengers.
by oldfort
Thu Sep 02, 2021 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: "Asset Protection" for young teenage driver in the household
Replies: 90
Views: 9429

Re: "Asset Protection" for young teenage driver in the household

Why not increase your umbrella limits? Whatever it costs, it has to be an order of magnitude cheaper than hiring a lawyer to create an offshore trust or DAPT, paying a corporate trustee to manage the trust for the rest of your life and whatever drag comes from the corporate trustee making sub-optimal or high cost investments.
by oldfort
Tue Aug 31, 2021 12:06 am
Forum: Personal Investments
Topic: Asset Protection - Insurance - other ideas?
Replies: 10
Views: 1439

Re: Asset Protection - Insurance - other ideas?

PhillyPhan wrote: Mon Aug 30, 2021 6:38 pm Is it true that you should open brokerage and other accounts jointly if married to gain protection? Would this provide protection?
Divorce is orders of magnitude more common than 7-figure auto accident judgements. Before you open accounts jointly, you should at least consider what impact, if any, it would have in the event of a divorce. If you have separate property, such as from before marriage or due to an inheritance, it would be best to keep it separate.
by oldfort
Sat Aug 28, 2021 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Safeguarding an elderly parent from financial abuse
Replies: 41
Views: 4147

Re: Safeguarding an elderly parent from financial abuse

fourwheelcycle wrote: Sat Aug 28, 2021 7:18 pm OP, you suggested it may be time for you to manage all of your father's finances, but then you asked us how his investments could be protected from other relatives or cyber criminals. Do you manage your own investments? If so, where? If you have your own savings at Schwab, Fidelity, or Vanguard, you should be very aware there is no way for relatives or cyber criminals to get at them as long as you do not share your password and you take advantage of 2FA security protection when you login.
The OP's post is a little vague. 2FA doesn't prevent some relative coming by and asking for money and a parent with mental impairment from writing a check.
by oldfort
Sat Aug 28, 2021 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Safeguarding an elderly parent from financial abuse
Replies: 41
Views: 4147

Re: Safeguarding an elderly parent from financial abuse

delamer wrote: Sat Aug 28, 2021 2:41 pm
tibbitts wrote: Sat Aug 28, 2021 11:40 am
niagara_guy wrote: Sat Aug 28, 2021 11:03 am I am in a different situation. I chose to ask the providers (both Vanguard and Fidelity) to not allow any disbursements from my accounts. (I believe I will need a medallion signature guarantee to lift these.) This would prevent someone from moving money out of his accounts.
I didn't know that was even an option, so it's interesting that you can do that, although I'd be concerned about the difficulty of getting the medallion guarantee if there was any question of cognitive issues.
But, taking this literally, doesn’t that mean that you can’t access your own money?
Which would be the point. The OP thinks his dad is no longer mentally capable of being entrusted with his own money.
by oldfort
Thu Aug 26, 2021 3:33 pm
Forum: Investing - Theory, News & General
Topic: Is the millionaire next door outdated?
Replies: 151
Views: 13380

Re: Is the millionaire next door outdated?

Plenty of young people aren’t saddled with much school debt. They go to affordable state schools, possibly with a year or two of community college first. I know a bright young woman graduating now with great career prospects in STEM that did just that. And she lived at home. Let me guess - you're not in your 20s. Not in your 30s either. Nor do you work in higher ed. The cost of college has risen much faster than inflation for decades. This is true at private schools, but also at public schools. There are a variety of reasons for this, including diminishing state support for schools, increasing administrative overhead from new requirements and expectations, and the Baumol effect. Yes, you can get around some of this with product substitutio...
by oldfort
Thu Aug 26, 2021 1:09 pm
Forum: Investing - Theory, News & General
Topic: Is the millionaire next door outdated?
Replies: 151
Views: 13380

Re: Is the millionaire next door outdated?

fortunefavored wrote: Thu Aug 26, 2021 10:11 am I completely agree the focus needs to be more on the income side than the savings side to become wealthy. The advice of "driving a moderate car" doesn't help if you're making $60K/year with $100K in debt and 2/3 your income goes to rent.
Don't live in a place where 2/3 your income goes to rent.
by oldfort
Thu Aug 26, 2021 12:45 pm
Forum: Investing - Theory, News & General
Topic: Is the millionaire next door outdated?
Replies: 151
Views: 13380

Re: Is the millionaire next door outdated?

Save, don't spend, stop acting rich, don't drive a BMW. Advice still applies. It won't go out of date. Leaving aside the assumption that you cannot be a millionaire and drive a BMW, who needs a book for this? An 8 year old can figure this out. The book itself is a much better deal for the author than the advice in it for the reader. An 8yr old can also figure out how not to become obese, but nearly half of us are and there are a zillion books out there about it (and I'm working on another). "Common sense" isn't exactly common; speak to my 60yr old in-laws (one of whom has a doctorate degree) about the concepts in this book and they think it's rocket science, it took my own parents ~55yrs to really understand it. Also, reminders a...
by oldfort
Thu Aug 26, 2021 12:12 pm
Forum: Investing - Theory, News & General
Topic: Is the millionaire next door outdated?
Replies: 151
Views: 13380

Re: Is the millionaire next door outdated?

revhappy wrote: Thu Aug 26, 2021 7:35 am I just started reading the book, The millionaire next door and the first few pages, make me feel, it is outdated. This book was written in 1996, I wonder if America has changed quite a lot since then.
I haven't read it, but his daughter published a follow up book The Next Millionaire Next Door: Enduring Strategies for Building Wealth in 2018. The original is outdated. It goes into the spending habits of 1996 and obviously the spending habits of everyone have changed a lot since then. Some of it is almost comical in retrospect, talking about the price-per-pound for cars.
by oldfort
Wed Aug 25, 2021 11:04 pm
Forum: Personal Consumer Issues
Topic: Pistol safe recommendation
Replies: 32
Views: 5207

Re: Pistol safe recommendation

seratoninman wrote: Wed Aug 25, 2021 8:40 pm Can anyone make a safe recommendation? I am trying to securely lock a gun in a reliable safe that would fit under the bed or on a closet shelf. I have heard bad things about fingerprint safes and want a good value.

Factors:

* Small size
* affordable
* completely reliable (no chance of a young adult opening it)

Thanks!!!
A young adult is always going to be able to get into a pistol safe if they're determined enough. If they didn't mind destroying the safe in the process, a strong teenager with some hand tools and a couple of hours before their parents got home should be able to get into almost all handgun safes on the market.

https://www.youtube.com/watch?v=-RlwGkO0hxE
by oldfort
Wed Aug 25, 2021 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Bank Safety Deposit Box Safety
Replies: 38
Views: 6691

Re: Bank Safety Deposit Box Safety

In the real world, is this a big worry? Yeah, I get it that an occasional fraud or theft can occur. But my thinking is that if this was a widespead thing, we'd hear a lot more about it. Sort of like Vanguard online safety. I worry about it, but I never knew anyone who even knew anyone who had something really bad happen that didn't get resolved. The New York Times ran an article on this. A safety deposit box is going to be safer than anything at your house. The 33,000 number sounds scary, but includes all causes of harm to items in the box. It includes accidents and natural disasters, fires, floods, tornadoes, earthquakes, and hurricanes. According to the article, Every year, a few hundred customers report to the authorities that valuable ...
by oldfort
Wed Aug 25, 2021 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: College Financial Aid
Replies: 19
Views: 1958

Re: College Financial Aid

jla wrote: Wed Aug 25, 2021 5:41 pm I read a few books on this subject; and understand that college tuition is more like MSRP. Often colleges would charge tuitions based on financial situation of individuals.

2) With our assets, what's the chance of obtaining financial aids? Is it worth the time to fill out FAFSA or CSS?
Colleges have net price calculators. Fill them out and see what numbers they give you.
by oldfort
Wed Aug 25, 2021 2:22 pm
Forum: Personal Investments
Topic: Why Bother With Rental Properties?
Replies: 101
Views: 15821

Re: Why Bother With Rental Properties?

Lots of people love rental properties, but I don't see the point. I don't think they generate better returns than a stock portfolio, they're illiquid, not scalable beyond maybe 5-10 units (if you have a day job), the income is generally taxed at income tax rates, and they certainly can require a lot of "sweat equity". What am I missing? You're not missing a lot. Historically, residential real estate has had returns almost comparable to stocks in a study discussed in this thread https://www.bogleheads.org/forum/viewtopic.php?t=277535. If you want to invest real estate, you could buy REITs or if you're rich enough, private equity real estate funds. If someone gets high returns in real estate, it's typically comes from some combinat...
by oldfort
Wed Aug 25, 2021 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Federal Employment Tips
Replies: 36
Views: 4626

Re: Federal Employment Tips

Great tips. Learning lots. As always, thank you. It does make sense to keep things going especially for the retirement for us here. Its my personal wish to work for the Federal Government. I have a terrible boss, veral abuse/screaming, will not take inputs, chasing customers away (most are gone), literally driving our unit to the ground, with poor leadership. Entire unit has nothing much to do and my whole team is just killing time. Well, I use the time to learn AWS skills a bit and do some side gigs. I still can keep going. Maybe I can request an internal transfer to a differ business unit to stay in the retirement system? How's that idea? I tried requesting a transfer with skip level, boss came to know and I was screamed at for half hour...
by oldfort
Tue Aug 24, 2021 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Employment Tips
Replies: 36
Views: 4626

Re: Federal Employment Tips

tj wrote: Tue Aug 24, 2021 8:23 pm OP is little over a decade away from an Arizona pension though, which presumably gives him retiree health insurance at age 52. I have no idea why he wants to abandon that.
I don't get it either. The OP's spouse works under the same retirement system, so they would be giving up two government pensions if they left Arizona.
by oldfort
Tue Aug 24, 2021 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Employment Tips
Replies: 36
Views: 4626

Re: Federal Employment Tips

Unless you absolutely hate your job, it would be foolish to move to take a federal job. 75% at age 52 must be one of the best pensions in the country. Throwing away two pensions doesn't make financial sense for your family. If you move to DC, the cost of living will be much higher than in Arizona.
Also wanted to include another data point is that the other spouse is also in the same retirement system and will be potentially eligible for same type of benefit in 15 years. Luckily the spouse is non-IT, which puts the experience and expertise valuable for years to come.

So, if things go good, both spouses might potentially retire in early 50s and collect 75% of pay, rest of the living years.
by oldfort
Tue Aug 24, 2021 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Employment Tips
Replies: 36
Views: 4626

Re: Federal Employment Tips

Invictus002 wrote: Mon Aug 23, 2021 5:53 pm That's good to know that there are lots of possibilities to keep moving up and sideways in the Feds.

At my current employment, there are no such things, you come, maybe go up once, if you are in the boys network move more, else stay or go.
For federal employees on the GS pay scale, 3% are GS-15 and another 0.35% might be SES. Most federal employees will retire at GS-14 and below for those on the GS scale.
https://www.fedsmith.com/2021/05/10/cha ... employees/
by oldfort
Tue Aug 24, 2021 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Employment Tips
Replies: 36
Views: 4626

Re: Federal Employment Tips

I see a lot of users here who are current or ex-federal government employees. I have some questions regarding finding Federal employment. I work in IT and have 15+ years of State and Local government experience. My skill levels are at par with the private industry. I tried my hand in obtaining Federal employment in the open to public category (non veteran), but its almost impossible to get one. Stay at your current job based on your post history or else look for another job within the same retirement system. You can retire at 52 with 75% of your salary or you can go work for the Feds and get a pension of 12-13% under FERS, 1%*years of service, assuming you retired at the same age. The earliest you could start collecting a FERS pension woul...
by oldfort
Tue Aug 24, 2021 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Federal Employment Tips
Replies: 36
Views: 4626

Re: Federal Employment Tips

Invictus002 wrote: Mon Aug 23, 2021 1:57 am I see a lot of users here who are current or ex-federal government employees. I have some questions regarding finding Federal employment.

What's the secret sauce? What am I missing?
The federal government does a lot of promoting from within. For those on the GS or equivalent pay scales, the 14 and 13 grade positions tend to go to current feds or in some cases ex-military. It's a lot easier to get your foot in the door as a 12 than to come in from the outside as a 14.