Search found 4030 matches

by afan
Fri Apr 19, 2019 9:04 am
Forum: Personal Finance (Not Investing)
Topic: The reality of borrowing from your 401k for home mortgage
Replies: 48
Views: 2753

Re: The reality of borrowing from your 401k for home mortgage

When your salaries hit those higher figures you will be in a completely different situation. It will be easy to save for a home. Put the money in a safe place that earns interest. CDs, bo funds (probably muni with the higher salaries). Then wait. Do NOT borrow from your retirement accounts. Max them...
by afan
Fri Apr 19, 2019 4:56 am
Forum: Personal Finance (Not Investing)
Topic: dropping umbrella and increasing auto liability
Replies: 56
Views: 3027

Re: dropping umbrella and increasing auto liability

"It would carry some weight if the person who had never heard of a million dollar settlement had spent 30 years practicing law" Several lawyers have commented in the dozens of umbrella threads on this forum over the years. Million dollar settlements happen, what doesn't happen is a million dollar s...
by afan
Thu Apr 18, 2019 5:33 pm
Forum: Personal Investments
Topic: Currently with Schwab private client--and decided to get out--but what to do
Replies: 15
Views: 1233

Re: Currently with Schwab private client--and decided to get out--but what to do

If you refuse to manage the money yourself, then you could stay at Schwab and use their intelligent portfolio premium service. It would be way cheaper than hiring a conventional advisor. You could try Vanguard PAS. It would be more expensive than the Intelligent Portfolio Premium, but cheaper than a...
by afan
Thu Apr 18, 2019 4:52 pm
Forum: Investing - Theory, News & General
Topic: Does 100% stocks make sense for very high net worth individuals
Replies: 124
Views: 12332

Re: Does 100% stocks make sense for very high net worth individuals

For this question I would define "very high net worth" as meaning "would remain very high networth if their assets dropped by 90%". If $30M is "very high" then that would mean $300 M to remain there after a big drop. I would probably not include those with only $300M in this group, but we can go wit...
by afan
Thu Apr 18, 2019 11:33 am
Forum: Personal Finance (Not Investing)
Topic: dropping umbrella and increasing auto liability
Replies: 56
Views: 3027

Re: dropping umbrella and increasing auto liability

My umbrella represents the total liability coverage, not the amount over the auto: If I had $1M in umbrella and a 300k liability limit for auto, then my total coverage would be $1M, not $1.3M. If I were to increase my auto liability limit to 500k and kept the $1M umbrella, my total coverage would re...
by afan
Wed Apr 17, 2019 1:26 pm
Forum: Personal Investments
Topic: Three Fund Portfolio Advice -- Vanguard/TIAA-CREF
Replies: 6
Views: 557

Re: Three Fund Portfolio Advice -- Vanguard/TIAA-CREF

Vanguard funds are less expensive than TIAA. Why keep stock and bond money at TIAA? If you hold annuities, that may be a reason to maintain a relationship with TIAA, but not for stock or bond mutual funds.
by afan
Wed Apr 17, 2019 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: My life insurance company wants to "help me save money"
Replies: 26
Views: 2184

Re: My life insurance company wants to "help me save money"

Much of this depends on whether the OP's concerns about insurability are well founded. There may be limited options for purchasing a new policy at favorable rates.
by afan
Wed Apr 17, 2019 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1793

Re: Estate Planning for Mother in Law

Each heir would have their own trust. Each trust would be managed and distribution decisions made appropriate to the individual. I f you don't need the income, you can invest to keep taxable income low. Depending on your tax bracket, you may save taxes by leaving the income in the trust. You will ge...
by afan
Wed Apr 17, 2019 12:23 pm
Forum: Personal Investments
Topic: Schwab vs. Fidelity vs. Vanguard / 3-fund diversification
Replies: 9
Views: 1026

Re: Schwab vs. Fidelity vs. Vanguard / 3-fund diversification

The only diversification benefit I can see, hypothetical, is of a major outage at one firm or a hack of your account. If everything you have is at one firm then all your assets are frozen while they sort it out. If you have money at multiple firms, then problems at one will not leave you completely ...
by afan
Wed Apr 17, 2019 8:31 am
Forum: Personal Finance (Not Investing)
Topic: My life insurance company wants to "help me save money"
Replies: 26
Views: 2184

Re: My life insurance company wants to "help me save money"

I agree it seems unlikely you would need life insurance at age 75. Part of the choice between annual and level term is how long you will need the coverage. At an extreme example, if you only need one year of coverage then the one-year premium on a 20 level policy will be a lot more than for an annua...
by afan
Wed Apr 17, 2019 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1793

Re: Estate Planning for Mother in Law

With a relatively small amount in the IRA and plans to further deplete it during life, I suspect it may not be worth it to create four separate trusts to hold each child's share. Each beneficiary will get something less than $20,000. That might be simply distributed to them in inherited IRAs. The le...
by afan
Wed Apr 17, 2019 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for Mother in Law
Replies: 39
Views: 1793

Re: Estate Planning for Mother in Law

When last I checked, Vanguard would insist on managing the investments if it were the trustee. There are other firms that will be administrative trustee without managing the investments. Schwab will do that but you are required to use one of the many investment managers in the Schwab network. With c...
by afan
Wed Apr 17, 2019 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Do flat fees exist for a trust with the trust company as co-trustee?
Replies: 4
Views: 450

Re: Do flat fees exist for a trust with the trust company as co-trustee?

Four million would be small potatoes for Northern Trust. If they would take the trust at all the fees would be eye watering. Most investment managers also charge a percent of assets. Does your advisor charge a flat fee? When I was looking for trustees a few years ago I considered the same design wit...
by afan
Wed Apr 17, 2019 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Open social secuity
Replies: 41
Views: 3003

Re: Open social secuity

Bumping this discussion of Open Social Security and taxes. I completely agree that creating a program that will calculate income taxes is far beyond the narrow goal of optimizing the decision of when to start benefits and that it would be extremely complicated. However, taxes can affect the claiming...
by afan
Mon Apr 15, 2019 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

From what you describe, it may not prevent the beneficiary from asking, but it would eliminate the OP's obligation to respond. A lot of heavy lifting, but if it works, the beneficiary will get what he seems to want- control over his money without having to deal with the OP. The OP will be out of the...
by afan
Mon Apr 15, 2019 4:22 pm
Forum: Investing - Theory, News & General
Topic: Career Advice: Is active management really dying?
Replies: 26
Views: 2803

Re: Career Advice: Is active management really dying?

I would not equate being a financial advisor with engaging in active management. There is a need for people to manage a portfolio of index funds for investors unwilling or unable to do that for themselves. Providing financial advice, of course, need not involve investment management at all. If your ...
by afan
Mon Apr 15, 2019 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

Would such a provision prevent the trust from buying the annuity and then assigning it to the beneficiary? The trust would have to purchase the annuity in the beneficiary's name from the start.
by afan
Mon Apr 15, 2019 1:41 pm
Forum: Personal Investments
Topic: My advisor VS Vanguard's PAS
Replies: 70
Views: 4566

Re: My advisor VS Vanguard's PAS

Your advisor need not be in the city or state where you live. You answer their questions, provide the numbers and they generate advice. No need to meet face to face. In fact, the standard social requirements would make the information transfer slower for an in person meeting. Paying by the hour, you...
by afan
Mon Apr 15, 2019 12:42 pm
Forum: Personal Investments
Topic: My advisor VS Vanguard's PAS
Replies: 70
Views: 4566

Re: My advisor VS Vanguard's PAS

The last time I asked for thoughts on Social Security claiming strategies. I entered the PIA and ages of myself and spouse, our plans on how long to work, etc. The CFP did not seem to have looked at the information and just said spouse should claim as soon as possible. No indication of a calculatio...
by afan
Mon Apr 15, 2019 12:32 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

As one's horizon becomes shorter with age it may be reasonable to change asset allocation. Pleny of money at 65 leaves decades of uncertainty. Plenty of money at 90 leaves far less time for the unpredictable to unfold. If one truly has plenty at that point the a high stock allocation could be great....
by afan
Mon Apr 15, 2019 10:21 am
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

.No, I am not factoring in a rumored cut to social security. To my understanding, there are no cuts to social security codified in the law and any decision on cutting social security is speculation. I don't make decisions based on speculation. Not a rumor. Not speculation. Read the trustee's report.
by afan
Mon Apr 15, 2019 9:41 am
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

To revise my original question, I probably would do 100% stock. I think it'd be wise to have 5 years living expenses in stable value money, and then 100% stocks for all remainder. That way, I have enough living expenses to weather almost all of the possible downturns and stay the course until the u...
by afan
Mon Apr 15, 2019 9:20 am
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

We have earmarked funds that we anticipate never spending. If all goes according to plan, those are destined to go to our heirs. The time horizon may be college funds for yet to be conceived grandchildren, retirement funds for our children or perhaps retirement funds for grandchildren. A long time i...
by afan
Sun Apr 14, 2019 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

Then the trust would own the home? You would distribute the home from the trust to the beneficiary?

So the only remaining issue would getting the beneficiary out of the family trust.
by afan
Sun Apr 14, 2019 8:33 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

From the current trustee's report Current law precludes payment of any benefits beyond the amount that can be financed by the trust funds, that is, from annual income and trust fund reserves. In years after trust fund depletion, the amount of benefits that would be payable is lower than shown becaus...
by afan
Sun Apr 14, 2019 8:04 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

Every year the Social Security trustees issue a report on the status of the system, including when and by how much the cuts are anticipated. Most recent was 21% in 2034. Current law. No, current law specifies the formula on how much social security recipients are paid, and that formula doesn't take...
by afan
Sun Apr 14, 2019 6:56 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

Yes, and people break the rule regarding social security all the time and get away with it. The current law is the benefit cut, not current benefits. So all the discussions need to be predicated on the benefit cut, not on benefits as they are now. Where does the current law cuts benefits ? Other th...
by afan
Sun Apr 14, 2019 6:07 pm
Forum: Personal Investments
Topic: My advisor VS Vanguard's PAS
Replies: 70
Views: 4566

Re: My advisor VS Vanguard's PAS

I got a free retirement plan from Vanguard, not through PAS. It looked at my current allocation of funds (all cap weighted index for stock, some intermediate term muni bond fund) and did not recommend any active funds. Did not recommend international bonds either. As I said, I find the service fine ...
by afan
Sun Apr 14, 2019 5:49 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

With regards to social security, forum rules specifically prohibit discussion on what might happen in the future. The cut in Social Security benefits is a combination of CURRENT law, which is fine for discussion, and current projections, which are also fine for discussion. Speculation about future ...
by afan
Sun Apr 14, 2019 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

As long as the difficult beneficiary is also among the beneficiaries of the family trust, I don't see how to make a clean break. Maybe the lawyer can think of a way to make a transfer of money to the beneficiary out of the family trust that would end his claim to anything else from it. Then the OP c...
by afan
Sun Apr 14, 2019 1:50 pm
Forum: Personal Investments
Topic: My advisor VS Vanguard's PAS
Replies: 70
Views: 4566

Re: My advisor VS Vanguard's PAS

If your current advisor will cut fees to match PAS, the next question is whether the advisor will switch to low cost index funds. OP may be able to get to the same costs as with PAS while maintaining the relationship with the current advisor. I repeat my caution against the value of financial advice...
by afan
Sun Apr 14, 2019 1:41 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6933

Re: If you have plenty of money, why not 100% stocks in retirement?

I agree that at some multiple of assets over needs one could be 100% stocks and still sleep just fine. Not many people have that much money. Warren Buffett famously commented that he was leaving his wife a lot of money, I think $1 billion. He said he would instruct the trustee to put 90% in stocks a...
by afan
Sat Apr 13, 2019 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting mutual fund shares to a charity from Vanguard
Replies: 12
Views: 774

Re: Gifting mutual fund shares to a charity from Vanguard

Before we had a DAF, we ran into the problems with smaller and medium sized charities not able to accept mutual funds. Even giving stock to some was a hassle. In either case we had to get their account information and send a letter to our mutual fund company and brokerage with all the details. It wa...
by afan
Sat Apr 13, 2019 7:27 pm
Forum: Personal Investments
Topic: My advisor VS Vanguard's PAS
Replies: 70
Views: 4566

Re: My advisor VS Vanguard's PAS

Aside from that, my current advisor's services are similar. They have provided value over the years in offering us advice on mortgages, renting vs buying, college savings, etc etc. If you value the non-investing financial advice, you may want to be careful about PAS. I do not use that service, but ...
by afan
Sat Apr 13, 2019 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting mutual fund shares to a charity from Vanguard
Replies: 12
Views: 774

Re: Gifting mutual fund shares to a charity from Vanguard

Definitely do a DAF. If you don't want to meet the Vanguard minimums for initial donation or individual gifts then open a fund at Fidelity or Schwab. You will have to transfer your shares to F or S to set it up and to replenish the fund. But the gifting is then trivial and quick. Since the DAF does ...
by afan
Sat Apr 13, 2019 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

For this situation it is hard to see any satisfactory solution that continues the status quo. That would mean the trust continues, some trustee makes the investment and distribution decisions and the beneficiary continues to complain. Dumping the trust on a corporate trustee would get the OP out of ...
by afan
Sat Apr 13, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

If you do go with a fixed annuity, I suggest NOT giving the beneficiary anything near $58k a year. As inflation goes up over time, you will be unable to increase his monthly benefit. And brother’s expenses are likely to grow as he gets older. What if he needs assisted living in 10 years and it cost...
by afan
Fri Apr 12, 2019 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

Switching to a fund would save the difference between the RIA's fee and the fund expense ratio. But then the OP, rather than the RIA, would be responsible for selecting the fund. Plus the OP would still be dealing with the trust and the beneficiary. That could be a good solution for a cooperative be...
by afan
Fri Apr 12, 2019 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

I would not keep doing it if I had a choice. Appointing bank trustee, if one would take the job, could still leave the OP stuck if the OP would continue to have the ability to appoint another trustee. Presumably the beneficiary would not be happy with the bank trustee and would try to get the OP to ...
by afan
Fri Apr 12, 2019 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Trust investment choices for a difficult beneficiary
Replies: 108
Views: 6077

Re: Trust investment choices for a difficult beneficiary

Would the annuity be purchased by the trust and held as the only asset of the trust? That is, the insurance company would issue monthly checks to the trust and the trust would then write checks to the beneficiary? This would keep the future cash flow from the annuity protected within the trust. Or w...
by afan
Thu Apr 11, 2019 5:32 am
Forum: Personal Finance (Not Investing)
Topic: The high cost of sound financial advice
Replies: 45
Views: 4829

Re: The high cost of sound financial advice

When asking around, don't use the term "Fee Only." That term means what it means, not what you want it to mean. Use a term like "Advice only", "Hourly advice only", "One-time consultation only", "Planning only", or something else that conveys the concept that you do not intend to pay anyone to mana...
by afan
Thu Apr 11, 2019 5:20 am
Forum: Investing - Theory, News & General
Topic: Indexing on leverage?
Replies: 31
Views: 1752

Re: Indexing on leverage?

Your leveraged portfolio has to do well enough to cover the cost of borrowing and the increased risk. Individuals cannot borrow at the T bill rate, so that cost would be substantial. You need to have enough liquidity to survive steep market drops, or sell out during those drops to satisfy the margin...
by afan
Wed Apr 10, 2019 6:54 am
Forum: Investing - Theory, News & General
Topic: Did I read this correctly? SS and your AA
Replies: 36
Views: 4001

Re: Did I read this correctly? SS and your AA

Rather, it’s because as wealth grows, Social Security — which mimics the role of bonds in providing an income stream — represents a shrinking percentage of total income. It follows that wealthier people need to replace that missing fixed-income exposure with bonds within their financial portfolio. ...
by afan
Tue Apr 09, 2019 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Hourly vs. retainer for a financial planner
Replies: 64
Views: 3285

Re: Hourly vs. retainer for a financial planner

I suppose my biggest concern about using an advisor as the OP suggests is that I would not believe any one person was expert in all of these areas. I would assume that someone who tried to be a jack of all trades would not be particularly useful in any of them. I would not go to the estate planning...
by afan
Mon Apr 08, 2019 5:25 pm
Forum: Investing - Theory, News & General
Topic: Tax Credentials?
Replies: 3
Views: 406

Re: Tax Credentials?

Or an enrolled agent. They are specifically tax experts. Have to stay up to date to maintain their credentials.
by afan
Mon Apr 08, 2019 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: can I afford second home purchase with retirement funds
Replies: 19
Views: 2319

Re: can I afford second home purchase with retirement funds

This might look different if the OP was buying into this retirement community with a plan to retire there and sell the current house.
by afan
Mon Apr 08, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Hourly vs. retainer for a financial planner
Replies: 64
Views: 3285

Re: Hourly vs. retainer for a financial planner

I suppose my biggest concern about using an advisor as the OP suggests is that I would not believe any one person was expert in all of these areas. I would assume that someone who tried to be a jack of all trades would not be particularly useful in any of them. I would not go to the estate planning ...
by afan
Mon Apr 08, 2019 9:53 am
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 61
Views: 8641

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

It is relatively easy to look over a very large field of categories and find a couple that meet the criteria you want to write about based on their current historical performance. Exactly. And then to cook up a statement about which funds to include. Fidelity does not explain why it chose the exclu...
by afan
Mon Apr 08, 2019 4:39 am
Forum: Personal Finance (Not Investing)
Topic: Hourly vs. retainer for a financial planner
Replies: 64
Views: 3285

Re: Hourly vs. retainer for a financial planner

I think bsteiner has said that you have to be a lawyer, but you do not have to be admitted to the bar for each state for which you do estate planning. I don't know the details. I agree that I would only consult an attorney who is an expert in estates and trusts for this work. I don't believe someone...
by afan
Thu Apr 04, 2019 6:38 am
Forum: Personal Finance (Not Investing)
Topic: Why not 100% World index fund?
Replies: 20
Views: 2236

Re: Why not 100% World index fund?

There is a world index fund FOR STOCKS. That is what. VT gives you. As far as I know, there is no total world fund that combines stocks and bonds, cap weighted. I am not sure who would be best served by such a fund. Using this would mean giving up the ability to adjust the risk of the portfolio to p...