Search found 57 matches

by khart23
Sun Sep 13, 2020 6:16 pm
Forum: Personal Investments
Topic: question for the bond fund experts out there
Replies: 12
Views: 1064

Re: question for the bond fund experts out there

This could be an instance of not seeing the Forrest for the trees - there’s also still many layers beyond what we know. I would be looking at surviving spouse considerations (if you are married), inflation risk [and that being compounded by tax hikes by 2026], and a whole number of other very impact...
by khart23
Sun Sep 13, 2020 5:29 pm
Forum: Personal Investments
Topic: Cash on hand for two year horizon - suggested placement
Replies: 6
Views: 695

Re: Cash on hand for two year horizon - suggested placement

Your best bet is either a high yield savings account/keep your liquidity or use something like a cd/cds that you can ladder and/or have set to mature around when you want to buy. The only other thing (and disclosure: I haven’t set these for just a 2 year period) would be something like the ibond ETF...
by khart23
Fri Aug 21, 2020 6:09 pm
Forum: Personal Investments
Topic: Variable Annuity from Sept 2011 - Results
Replies: 9
Views: 736

Re: Variable Annuity from Sept 2011 - Results

Tax-deferral & Wealth transfer has been the historical prime uses for them. Many, if not most allow asset selection by the investor and with a reasonable issuer a three fund portfolio is absolutely achievable. On costs: there are versions where you take all the up or down side risk so the annuit...
by khart23
Fri Aug 21, 2020 8:30 am
Forum: Personal Finance (Not Investing)
Topic: One spouse retiring, lower tax bracket - best mix of Roth/Traditional/Roth conversion
Replies: 9
Views: 815

Re: One spouse retiring, lower tax bracket - best mix of Roth/Traditional/Roth conversion

Best to formally plan in this situation there are WAY too many “what-if” questions/considerations My firm uses a software that will calculate your projected tax savings/loss on conversions/QCDs etc and gives you the blueprint of how much to convert. I think you will get some great advice in general ...
by khart23
Fri Aug 21, 2020 5:10 am
Forum: Investing - Theory, News & General
Topic: Vanguard: Fair Value for US equities
Replies: 17
Views: 1662

Re: Vanguard: Fair Value for US equities

The markets are greatly being carried by only a few companies & arguably have not seen the full impact of where things stand (e.g. things still are not back to "normal" since COVID hit, forebearance is propping up the mortgage defaults, the combination of flu/COVID-19 in the upcoming m...
by khart23
Thu Aug 20, 2020 11:19 pm
Forum: Personal Investments
Topic: Retired - Fidelity to Vanguard 401K/IRA transfer $2.9m
Replies: 9
Views: 1983

Re: Retired - Fidelity to Vanguard 401K/IRA transfer $2.9m

Trustee-to-trustee can be done by having the check made out to the receiving firm (e.g. payable to Vanguard, FBO [For the Benefit Of]: Account #) even if it needs to be sent to your address that still helps to absolve you of the 60 day rollover clock and potential issues. You do have a deep set of p...
by khart23
Wed Aug 19, 2020 11:15 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Personal Advisor Service vs Rick Ferri
Replies: 17
Views: 2490

Re: Vanguard Personal Advisor Service vs Rick Ferri

If you are primarily working in retirement accounts I would say that DIY would serve you just fine. As a fiduciary RIA and someone who follows both this forum and WCI I will say that there can be something to consider for tax-loss harvesting that a robo can do while you can’t (because you aren’t exp...
by khart23
Wed Aug 19, 2020 10:59 pm
Forum: Personal Investments
Topic: Longtime lurker looking for advice
Replies: 6
Views: 854

Re: Longtime lurker looking for advice

The key thing that you have mentioned is that a draw-down to the market hasn’t sustained but certainly can (and at some time will as is the nature of the market). The cash/bond/CD pockets you are putting aside are often times used in a bucket strategy as a way to 1) sleep better for some investors &...
by khart23
Wed Aug 19, 2020 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance: Pitfalls to Watch For?
Replies: 31
Views: 1925

Re: Term Life Insurance: Pitfalls to Watch For?

Term is all we will ever recommend at my firm as fiduciaries and our planning tool actually calculates the proper coverage amount/provides an average cost for the policy to give a benchmark. That gives our clients a good basis to shop off of without being oversold on coverage etc. by going out witho...
by khart23
Wed Aug 19, 2020 9:18 pm
Forum: Investing - Theory, News & General
Topic: How much can you safely withdraw from IRA
Replies: 8
Views: 753

Re: How much can you safely withdraw from IRA

Look at how you can/want to accomplish this. Systematic vs bucket strategies make a difference: https://thinkfinance.io/qhPPnzIkHN
by khart23
Wed Aug 12, 2020 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 8176
Views: 571042

Re: Refinance Mega Thread

There are some good options being rolled out if your investment provider has any bank ties. I use schwab for client accounts at my firm and I’m able to connect them with schwabs loan offers (up to 0.75% discount on loan based on your portfolio balance) & they also work with rocket mortgage as we...
by khart23
Wed Aug 12, 2020 8:58 pm
Forum: Investing - Theory, News & General
Topic: Where do institutions hold their investment?
Replies: 15
Views: 992

Re: Where do institutions hold their investment?

It’s not uncommon that firms take excess of SIPC coverage out with a number of insurers on top of SIPC. As an example, my firm clears through Schwab and they can do up to $600M https://international.schwab.com/account-protection There’s always an insurance or re-insurance play for the institutions a...
by khart23
Wed Aug 12, 2020 9:24 am
Forum: Personal Investments
Topic: Taking profit, discouraged by VG PAS, opinions
Replies: 34
Views: 2278

Re: Taking profit, discouraged by VG PAS, opinions

I could appreciate the duty of an advisor to help re-center clients when they are in a panic or "walk them off the ledge" but one of the problems with that mentality is that it may ultimately lead to being a short-term help where the client continues to feel anxious and ultimately makes a ...
by khart23
Tue Aug 11, 2020 2:58 pm
Forum: Personal Investments
Topic: Assets going from 600K->15M, should I change my asset allocation?
Replies: 175
Views: 17857

Re: Assets going from 600K->15M, should I change my asset allocation?

First, congratulations & welcome. You are not at all alone on the feelings/concerns you have from the change, I've had quite a few of these from various means of receiving the money and most had the same types of sentiment. With that said, this change does bring different considerations, obstacl...
by khart23
Tue Aug 11, 2020 2:34 pm
Forum: Personal Investments
Topic: Taking profit, discouraged by VG PAS, opinions
Replies: 34
Views: 2278

Re: Taking profit, discouraged by VG PAS, opinions

retired@50 I have spent many years in the industry and still maintain friendships with old colleagues that are in the role now with VG. You can also go to any type of sites like glassdoor that allow the information to be reported and aggregated to see there is a cash and a profit sharing arm to it. ...
by khart23
Tue Aug 11, 2020 12:36 pm
Forum: Personal Investments
Topic: Taking profit, discouraged by VG PAS, opinions
Replies: 34
Views: 2278

Re: Taking profit, discouraged by VG PAS, opinions

I've been with VG for 20 years and enrolled in the PAS right after retiring about 5 years ago and wife and I are currently 63 y/o. We have a $2.3M portfolio invested at 35% stocks 55% bonds and about 10% fixed in laddered CD's. My question is, using the VG "what if" scenario builder, I ca...
by khart23
Mon Aug 10, 2020 4:27 pm
Forum: Investing - Theory, News & General
Topic: Think no one can beat the index?
Replies: 158
Views: 15488

Re: Think no one can beat the index?

Yes, I’m aware the SIMPLE would be no cost I was referring to the 401(k) quotes you were given. You’d be considered a top-heavy plan with the difference in your balance vs employee balances (you’d have to consult and see if rolling in previous balances is excluded from that calculation). Just make s...
by khart23
Mon Aug 10, 2020 2:33 pm
Forum: Investing - Theory, News & General
Topic: Think no one can beat the index?
Replies: 158
Views: 15488

Re: Think no one can beat the index?

We have a Simple IRA. I have employees so the SEP doesn't work well. I considered a 401k but everything I have looked at is so expensive What price/what is the size of the plan ($ and employee count)? I may be able to point you in a direction but don’t want to waste your time if it’s not going to m...
by khart23
Mon Aug 10, 2020 10:48 am
Forum: Investing - Theory, News & General
Topic: Think no one can beat the index?
Replies: 158
Views: 15488

Re: Think no one can beat the index?

@southweststacker Not knowing more than your tax bracket and the current consideration of 5 years more of potential growth on your mother’s IRA before a 5 year draw down (coincidentally starting right at the TCJA income tax sunsetting). you may want to look at some creative planning around starting...
by khart23
Sun Aug 09, 2020 9:11 pm
Forum: Investing - Theory, News & General
Topic: Think no one can beat the index?
Replies: 158
Views: 15488

Re: Think no one can beat the index?

And for what it’s worth, if there’s any room for you to push more of your income into deductible 401(k) contributions max it and draw the equivalent to keep yourself at the same bracket while chipping some down as well.
by khart23
Sun Aug 09, 2020 8:53 pm
Forum: Investing - Theory, News & General
Topic: Think no one can beat the index?
Replies: 158
Views: 15488

Re: Think no one can beat the index?

How did this discussion come about in the first place? Did he call you at home, meet at some community event, happen to run into each other on the street? He managed my mom’s accounts. She passed away in June. I have been working with him on getting everything transferred over to me. He asked me if...
by khart23
Sun Aug 09, 2020 2:46 pm
Forum: Personal Investments
Topic: Distribution phase-Tax ramifications
Replies: 3
Views: 369

Re: Distribution phase-Tax ramifications

Wife and I have 1 million (all accounts) and are retiring at the end of the year. 825,000 457 b, 100,000 in taxable mutual fund, 75,000 roth. Also have 50,000 cash. Of that we need 200,00 in cash to purchase a condo (we don't want a mortgage). We currently rent and are looking to move on. Additiona...
by khart23
Sun Aug 09, 2020 11:09 am
Forum: Personal Finance (Not Investing)
Topic: consolidating accounts to Fidelity
Replies: 9
Views: 1298

Re: consolidating accounts to Fidelity

You will find strong(er) offers from Merrill’s banking relationship (owned by Bank of America), or many of the others like JP Morgan(Chase),TD until the acquisition by schwab completes etc. but for what you get in banking/CC perks you could loose some of the investment perks & savings that you o...
by khart23
Sun Aug 09, 2020 4:22 am
Forum: Investing - Theory, News & General
Topic: Think no one can beat the index?
Replies: 158
Views: 15488

Re: Think no one can beat the index?

I am not advocating for this I strongly believe in index investing and will continue to do so but this was given to me this week. https://www.capitalgroup.com/advisor/pdf/shareholder/MFGEBR-097-619801.pdf It is clearly sales propaganda for American funds but I would like some commentary on it. Doin...
by khart23
Sun Aug 09, 2020 12:13 am
Forum: Personal Investments
Topic: 401K rollover
Replies: 11
Views: 968

Re: 401K rollover

A few things: 1) Thank you for some of the updated information however there’s really still not enough to work with so I’m going to ask you some questions for clarity: - what is the balance in company stock and what is your cost basis? - what is the balance in your vanguard 500 fund (and confirm tha...
by khart23
Sat Aug 08, 2020 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Starting divorce process - how to succeed financially?
Replies: 79
Views: 10441

Re: Starting divorce process - how to succeed financially?

Fist off: sorry to hear that you’re having to navigate this life change. Even though it sounds that you emotionally are at peace with things divorces can be quite a headache. Now, having said that and having been someone who has also divorced but especially because of the way you described your soon...
by khart23
Sat Aug 08, 2020 7:11 pm
Forum: Personal Investments
Topic: Management fees
Replies: 10
Views: 693

Re: Management fees

Yes: https://www.fidelity.com/fixed-income-bonds/bond-pricing Vanguard charges the same, $1 per $1,000. See link: https://investor.vanguard.com/investing/transaction-fees-commissions/cds-bonds However, in neither case are you actually buying the bond from Fidelity or Vanguard, this is only the commi...
by khart23
Sat Aug 08, 2020 5:55 pm
Forum: Personal Investments
Topic: Management fees
Replies: 10
Views: 693

Re: Management fees

Forgive me for ignorance. You are saying that direct bond purchases via fidelity can have lower expense fees with a one-time purchase of $1/$1000 or 0.1% than a fund? I am not arguing or trying to convince, I just want to understand. A one-time cost of 0.1% v. an annual cost of 0.17% seems good. Th...
by khart23
Sat Aug 08, 2020 5:02 pm
Forum: Personal Investments
Topic: Management fees
Replies: 10
Views: 693

Re: Management fees

This might be a wiggly question, but might there be merit in having a company manage a bond portfolio? Having a transparent yearly fee seems fair considering buying and selling bonds is never a free ride. Besides, buy and selling municipal bonds nowadays is much more difficult than it was up until ...
by khart23
Sat Aug 08, 2020 3:41 pm
Forum: Personal Investments
Topic: Considering Firing Financial Advisor
Replies: 45
Views: 3225

Re: Considering Firing Financial Advisor

Welcome Ryan! OK - so the claim the advisor made is not factually incorrect but it does nothing for you... as was previously mentioned, sequence of returns risk only impacts you when you are actively taking money from the accounts - while you are saving/accumulating average returns tell the long-ter...
by khart23
Sat Aug 08, 2020 2:59 pm
Forum: Personal Investments
Topic: Experience with RSU's during layoffs?
Replies: 13
Views: 1021

Re: Experience with RSU's during layoffs?

I've helped numbers of people over the years with RSU offerings and I've seen it go all 3 ways: Accelerated (like a part of a ''package" the company chose to give), prorated - honoring years of service until separation & void - non-vested at time of separation. M&A typically gives them ...
by khart23
Sat Aug 08, 2020 2:46 pm
Forum: Personal Investments
Topic: Regular charitable giving with Fidelity DAF
Replies: 26
Views: 1335

Re: Regular charitable giving with Fidelity DAF

+1 that fid lets you use use the drop down for money movement or transfer. Follow this link and click "start the demo" that will let you play with how the accounts function but it will also let you look up your charity to see if you'd be doing all this planning for them to not be listed : ...
by khart23
Sat Aug 08, 2020 12:41 pm
Forum: Personal Investments
Topic: Ideas for allocating $300,000 in my new Vanguard account?
Replies: 9
Views: 1597

Re: Ideas for allocating $300,000 in my new Vanguard account?

welcome retirement13! So, you've got a little bit of work to do: 1) Start by sitting with your wife and agreeing on what your 5 most important values are, don't mistake these for financial goals . They can be things like Family, Health, Religion, Love, Integrity, Honesty, Integrity and Independence ...
by khart23
Mon Jul 27, 2020 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Charitable Annuity for Home
Replies: 2
Views: 303

Re: Charitable Annuity for Home

Unless you are really hurting for the income i would certainly look in other directions. Charitable annuities are complex, can be very confusing and ultimately have to account for your age when you donate and offset the actual value of the property with the valuation for funding the annuity. Example...
by khart23
Sun Jul 26, 2020 12:21 pm
Forum: Personal Investments
Topic: Why is this SPIA a bad idea?
Replies: 68
Views: 5458

Re: Why is this SPIA a bad idea?

SPIAs can be great when 1) used correctly & 2) properly set up You need to dig a little deeper into if the leftover principle to your heirs is important (that’s a cash refund rider you can add), what investments you have on the side that could fight the inflation in lieu of the COLA rider, etc? ...
by khart23
Sat Jul 25, 2020 5:36 pm
Forum: Personal Investments
Topic: Investing a Lump Sum
Replies: 9
Views: 1123

Re: Investing a Lump Sum

My concern is your inability to loose money coupled with the limited 3-5 year window. I would also say that we already had a market that was getting slightly long in the tooth before COVID hit, and personally I don’t know that anyone would be shocked if we experienced either more substantial volatil...
by khart23
Wed Jul 22, 2020 3:47 am
Forum: Personal Investments
Topic: General Financial Guidance/Questions
Replies: 6
Views: 775

Re: General Financial Guidance/Questions

Things seem very reasonable overall from the looks of what you have shown. One of the things that I highly encourage my clients like yourselves to consider as well is if you are targeting an estate for your two children be very aware of the SECURE Act impacting the traditional 401/IRA money. Also, c...
by khart23
Sun Jul 19, 2020 9:48 am
Forum: Personal Investments
Topic: Portfolio Review, edging towards early semi-retirement
Replies: 10
Views: 1123

Re: Portfolio Review, edging towards early semi-retirement

Some great things have been covered along the way here by the previous posts back to your inquiry. First, lets put a ballpark on the cost for what seems to be your #1 consideration: PAS. Since we don't have a more defined balance I will use the same $6M hypothetical that a previous poster had used a...
by khart23
Fri Jul 17, 2020 10:55 pm
Forum: Personal Investments
Topic: Fido Deferred Fixed Annuity
Replies: 84
Views: 7471

Re: Fido Deferred Fixed Annuity

They offer something like a .3% Management fee with individual bonds you would be the owner of and short-term arbitrage that they can use to sell bonds near maturity to short-term bond-funds at a premium where applicable due to the institutional management. Just a consideration in the big picture? ...
by khart23
Thu Jul 09, 2020 5:12 pm
Forum: Personal Investments
Topic: Fido Deferred Fixed Annuity
Replies: 84
Views: 7471

Re: Fido Deferred Fixed Annuity

Having been with Fido as an advisor for years I can corroborate the 10% liquidity, waiver of redemption charge for inheritor and tax-deferred speaking points mentioned. Having discussed that, MYGAS give you some extra birth risk-wise (as an example even AIG MYGAS didn’t default in 2008). Outside of ...
by khart23
Tue Jul 07, 2020 12:16 pm
Forum: Personal Investments
Topic: TIAA CREF Monte Carlo Simulations
Replies: 30
Views: 1465

Re: TIAA CREF Monte Carlo Simulations

Regarding why I do Roth conversions: Based on family histories, I am planning that I would live to 85 and my wife to 100. While we are MFJ, we will be in the 12/15 federal bracket. When she is widowed, she would be filing as single. With increase RMDs past 85 and taxability of SS benefits, she woul...
by khart23
Tue Jul 07, 2020 7:39 am
Forum: Personal Investments
Topic: Looking for verification on Annuity pitch...
Replies: 80
Views: 5090

Re: Looking for verification on Annuity pitch...

A few years ago, I compared the S&P 500 price index vs. the S&P 500 total return index. Over a 1 year time span, the total return (TR) was 2.4 % higher than the price return. Whenever a financial advisor shows performance against the S&P 500, add 2.4% to his number. Then, have him expla...
by khart23
Tue Jul 07, 2020 7:25 am
Forum: Personal Investments
Topic: Portfolio question.
Replies: 6
Views: 385

Re: Portfolio question.

Hey guys. First post. Just had a question about my 401k. I recently moved a portion of my 401K at Schwab to an IRA account. It left me with 125k in this account. My wife and I have approximately 800k in other retirement accounts, plus a 12k per year pension. I'm 61 wife is 58. I plan to work 5 to 6...
by khart23
Tue Jul 07, 2020 7:21 am
Forum: Personal Investments
Topic: Should I be doing ROTH conversions?
Replies: 19
Views: 2399

Re: Should I be doing ROTH conversions?

It's all relative to what the conversion will do for you. If leaving an inheritance is a priority to you than I absolutely think you should consider either the conversions or a spousal/minor beneficiary split to offset the 2 10 year clocks due to the SECURE Act.. But do some more formalized planning...
by khart23
Tue Jul 07, 2020 5:27 am
Forum: Personal Investments
Topic: TIAA CREF Monte Carlo Simulations
Replies: 30
Views: 1465

Re: TIAA CREF Monte Carlo Simulations

What is your monthly expense need? You mentioned medical but not total? It sounds like the system you get with many brokerage firms. As an example, Fidelity doesn't post a single loss in their planning calculations so although its free it ends up not being worth the paper its printed on (ergo why I ...
by khart23
Tue Jul 07, 2020 5:03 am
Forum: Personal Investments
Topic: Eligible for Traditional IRA?
Replies: 28
Views: 938

Re: Eligible for Traditional IRA?

You'll need to contact your firm that holds the account to look at getting the deposit recharacterized but otherwise your logic is correct that deductible IRA contributions will lower your MAGI. There's a lot more to know about your current situation etc to still know if this makes sense (long term)...
by khart23
Tue Jul 07, 2020 4:58 am
Forum: Personal Investments
Topic: How to invest $500K?
Replies: 10
Views: 1570

Re: How to invest $500K?

More information is certainly needed. Until that time the easy answer is somewhere with a better rate compared to the current one you have
by khart23
Tue Jul 07, 2020 4:50 am
Forum: Personal Investments
Topic: Looking for verification on Annuity pitch...
Replies: 80
Views: 5090

Re: Looking for verification on Annuity pitch...

From those tests we as financial professionals are able to prescribe a plan (much like a dr would write RX for everything from physical therapy to medication). Financial planners are not professionals like a doctor. Financial planners are professionals like a used car salesman. I know they LIKE to ...
by khart23
Sun Jun 28, 2020 5:36 pm
Forum: Personal Investments
Topic: Looking for verification on Annuity pitch...
Replies: 80
Views: 5090

Re: Looking for verification on Annuity pitch...

Financial planning should be like medicine: the tests (x-ray, mri, blood-tests, etc) should be a through, comprehensive look at your goals, values, income, taxes (2 years is typically the standard) and any concerns you may have. From those tests we as financial professionals are able to prescribe a ...
by khart23
Sun Jun 28, 2020 12:57 am
Forum: Personal Investments
Topic: Thoughts on maxing out Roth's vs 401k max out
Replies: 22
Views: 2169

Re: Thoughts on maxing out Roth's vs 401k max out

Thank you for clarifying a little further. If your gross income is $110k your standard deduction ($24,800 MFJ for 2020 tax year) means that only about $5k of your income is taxed within the 24% bracket. It also means that using the income deduction via 401(k) will not move your current tax costs in ...