Search found 2991 matches

by afan
Thu Dec 14, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Questions about donating appreciated fund shares
Replies: 7
Views: 448

Re: Questions about donating appreciated fund shares

The Fidelity and Schwab DAFs have much lower minimums than does Vanguard. There is a minimum annual fee. By paying this fee you buy simplicity. I think it is around $100, but easy to check. You transfer in your shares and earn the deduction at that time. The DAF then makes the contributions to the c...
by afan
Thu Dec 14, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: State Farm Insurance, Time to Leave
Replies: 44
Views: 3927

Re: State Farm Insurance, Time to Leave

When I comparison shop my insurance portfolio I both contact the captive companies and independent agents. The independent agents have been able to pick and choose among multiple carriers and put together proposals that include more than one company. So far that still has not been competitive with l...
by afan
Wed Dec 13, 2017 4:39 pm
Forum: Personal Consumer Issues
Topic: Do people still use AAA?
Replies: 179
Views: 10286

Re: Do people still use AAA?

Long time AAA member. Worth it for maps. Worth it for discounts. Easily worth it for roadside service. Had an experience when we got "service" included with a new car (back when we used to buy new cars). This was a benefit from the auto company. Needed road side assistance. Called them. They took th...
by afan
Wed Dec 13, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Trusts and asset protection
Replies: 6
Views: 729

Re: Trusts and asset protection

I am no expert on trust law, or any other kind of law, but I am pretty sure it is possible to decant trusts in Massachusetts. Naturally, what could happen in a particular case depends on the details. Sounds like a question for an expert attorney who knows MA law.
by afan
Wed Dec 13, 2017 8:38 am
Forum: Personal Finance (Not Investing)
Topic: State Farm Insurance, Time to Leave
Replies: 44
Views: 3927

Re: State Farm Insurance, Time to Leave

I should mention that those of us who are long term State Farm customers appear to benefit from discounts. When I have comparison shopped the premiums quoted by other insurers were at least comparable to the State Farm rates before discounts. Not better but in the ballpark. After the State Farm disc...
by afan
Wed Dec 13, 2017 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Medicare coverage process for new and rare treatment
Replies: 7
Views: 633

Re: Medicare coverage process for new and rare treatment

If your FIL has identified several places that offer the procedure, contact them and ask about coverage. They will have people whose full time job is dealing with Medicare and private insurance. They will know. Depending on the procedure and the private insurance it might be covered in some places a...
by afan
Wed Dec 13, 2017 5:46 am
Forum: Personal Finance (Not Investing)
Topic: your inheritance for young kids
Replies: 33
Views: 5063

Re: your inheritance for young kids

A lawyer who does not know the tax laws cannot possibly be an expert in trusts and estates. This is a specialized field and anyone doing this sort of planning needs such an expert. If you do name a corporate trustee make sure your documents include provisions to change the trustee. Once you find an ...
by afan
Wed Dec 13, 2017 5:10 am
Forum: Personal Finance (Not Investing)
Topic: State Farm Insurance, Time to Leave
Replies: 44
Views: 3927

Re: State Farm Insurance, Time to Leave

You simply have to shop every few years. Insurance companies have complex practices for setting rates and gambling how many people will pay price increases rather than switch. We have had SF for years and our rates are consistently better than any competitor when we comparison shop. But other people...
by afan
Tue Dec 12, 2017 11:18 am
Forum: Personal Consumer Issues
Topic: Snow Tires? Worth it?
Replies: 126
Views: 4573

Re: Snow Tires? Worth it?

I find TPMS worthless. I check my pressure. If it is down a few pounds I fill up the tire, but my TPMS has not alerted me. My TPMS does generate plenty of false alarms, claiming the pressure is low when it is not. If it give me the alarm I always check, but the only time it was right I already knew ...
by afan
Tue Dec 12, 2017 10:47 am
Forum: Personal Consumer Issues
Topic: Snow Tires? Worth it?
Replies: 126
Views: 4573

Re: Snow Tires? Worth it?

Most snow tires are designed with rubber that performs best below 40F. Above that the tire compound is out of its optimal zone and is overly squishy which dulls handling and wears out faster than normal. There are tires, like the Nokian WR series, that are designed as all-season winter tires that c...
by afan
Sun Dec 10, 2017 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Executor responsibilities
Replies: 44
Views: 2914

Re: Executor responsibilities

I can imagine estates for which there is no need for an executor but in my one time ding it there were a number of things for which being appointed was either necessary or convenient. The deceased was drawing a pension. Someone had to tell them about the death. Need death certificate. I don't know w...
by afan
Sun Dec 10, 2017 9:23 am
Forum: Investing - Theory, News & General
Topic: Vanguard Investment Advice
Replies: 34
Views: 3843

Re: Vanguard Investment Advice

I seems highly unlikely that many people would need help moving from a different allocation to the 4-found portfolio Vanguard recommends. For those who do, there is PAS. I assume Vanguard did this consultation for free? Since it does cost them some money and staff time to collect the information and...
by afan
Thu Dec 07, 2017 11:28 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Malkiel saying a world index maybe underweight countries like China?
Replies: 20
Views: 1124

Re: Thoughts on Malkiel saying a world index maybe underweight countries like China?

To follow on the points made by nisiprius We presume that the market portfolio reflects consensus pricing of the assets that are in the portfolio. We assume that all assets in the market and therefore the assets in the market with home in any particular country, are efficiently priced. But that assu...
by afan
Tue Dec 05, 2017 1:57 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Managing Risk With Factors
Replies: 121
Views: 9662

Re: Larry Swedroe: Managing Risk With Factors

I don't invest in the global portfolio not because I have chosen to be an active investor, picking some sectors over others based on my assessment of their investment potential. Instead, I don't invest in the global portfolio because the logic saying I should includes two critical simplifying assump...
by afan
Tue Dec 05, 2017 11:30 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Managing Risk With Factors
Replies: 121
Views: 9662

Re: Larry Swedroe: Managing Risk With Factors

I respectfully disagree. A 95% confidence interval is a 95% confidence interval. The math is no different. Plus many medical studies have bias due to funding just like financial studies. Medicine is changing rapidly. Look no further than pharmacogenomics. New information every day. I'd argue it's c...
by afan
Mon Dec 04, 2017 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1646

Re: Umbrella insurance when assets mainly in trusts

I sincerely hope a cardiology fellow does not start doing heart surgery. :happy The malpractice risk would be astronomical. But practicing cardiology still has plenty of exposure. It is reassuring to hear an expert opinion about the safety of the trust. While on the topic, bsteiner, can you elaborat...
by afan
Mon Dec 04, 2017 6:00 am
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1646

Re: Umbrella insurance when assets mainly in trusts

Regardless, you have $700k outside of the trust, and are presumably going to add to that total. A $3M umbrella policy seems reasonable on that basis alone. Given your age and profession, I might go higher than $3M. You’re protecting future earnings, not just your present net worth. Exactly. Even if...
by afan
Sun Dec 03, 2017 7:46 pm
Forum: Personal Consumer Issues
Topic: Any websites to help find a great doctor?
Replies: 36
Views: 2441

Re: Any websites to help find a great doctor?

In the Bay Area you have two of the best medical centers in the country UCSF and Stanford. I don't know how to find the best urologists at those places, but I would go to one of those centers. Best Doctors does systematically what one would do informally if asking for suggestions: They poll a large ...
by afan
Sun Dec 03, 2017 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Question on inheriting real estate from parents
Replies: 24
Views: 2776

Re: Question on inheriting real estate from parents

Depending on how much the properties and the total estate are worth there are several things an estate attorney could suggest to reduce estate tax exposure. The rules may be changing very soon, so it makes sense to ask the questions but wait until there is clarity about the answers. Your parents mig...
by afan
Sun Dec 03, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

I think FBN answered my question. I was wondering what was the arrangement with the law firm. I gather it is a co trustee, so it does not need anything else to manage the trust. I gather it only charges hourly rates and only when it does something. I suppose I am surprised it would be willing to hav...
by afan
Sun Dec 03, 2017 10:36 am
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5911

Re: The 4% rule, Firecalc and Human Nature

You are not missing anything. What you are seeing is people in a hysteria to be "safe" without stopping to think about how things work... retiring on nothing but a volatile portfolio places the retiree between the rock of not having enough and hard place of spending much less than one might have. I...
by afan
Sun Dec 03, 2017 10:11 am
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5911

Re: The 4% rule, Firecalc and Human Nature

A focus on the negative outcome seems appropriate. What is the chance that you will be 85 and destitute with no human capital? This determination is the point of the exercise. If I was forced to play a game of Russian roulette I would be worried about the single chamber with the bullet, not the 5 e...
by afan
Sun Dec 03, 2017 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

My plan is to appoint Vanguard as successor trustee when I can no longer serve and to use a law firm on an hourly basis to handle issues pertaining to a house that the beneficiary lives in, i.e. payment of property taxes, sale of house in future, etc. I looked into having a directed corporate trust...
by afan
Sat Dec 02, 2017 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

That's interesting, but puzzling. Does that mean the trustee would sell assets, generating taxable gains, to pay the fee when there are available already taxable funds from the income? Is there any expectation the the trustee would attempt to optimize the tax implications of management? To the exten...
by afan
Thu Nov 30, 2017 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

I think the problem with fiduciaries comes down to the assets under management fee system. It is loaded with conflicts. Honest people can work within such systems, but they cannot make the conflicts go away. I would think "advice only" could make many of the conflicts go away. In theory a bank could...
by afan
Thu Nov 30, 2017 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

I'll tell you one huge difference, and that is the people. At my last employer, a major and centuries old financial institution with offices worldwide, all the senior officers of the trust company were lawyers, many of them also held CPA designations and many with previous experience in New York Ci...
by afan
Thu Nov 30, 2017 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

While serving as trustee for a beneficiary who has had lifelong problems managing money, I was pleasantly surprised that working out a set monthly distribution was enough to keep that person happy. There have been a few "emergencies" running out of funds and the beneficiary carries a high credit car...
by afan
Thu Nov 30, 2017 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

Gill, Wow. I apologize if I hit a nerve. I don't consider my comments to be "tirades" any more than similar statements, many far more vehement than mine, about active managers or high price non-trustee asset managers. If the trustee is engaging in active management- against an enormous amount of evi...
by afan
Thu Nov 30, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: High-yield savings account to be held in revocable trust
Replies: 7
Views: 505

Re: High-yield savings account to be held in revocable trust

Are you sure they knew it was a revocable trust? I did run into the rules, now forgotten, that govern FDIC insurance. There are some types of trusts that are not eligible. But a simple revocable trust is. Some trusts may have other trusts as beneficiaries and that can be a problem. https://www.fdic....
by afan
Thu Nov 30, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

If the trust is less than a year old, you are premature in rocking the boat. Give it a year or two to establish a track record. It is early, but the active management is clear as are the high costs. The OP is right that the bank is not doing right by the trust. The only question is whether the bene...
by afan
Thu Nov 30, 2017 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

I would not go so far as to say there are no true fiduciaries. In this thread at least two people have reported serving as individual trustees on trusts of which they are not beneficiaries, for free. Other than living up to promises made to friends and relatives, it is not clear how these people are...
by afan
Wed Nov 29, 2017 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

I have seen lots of discussions of the difference for asset management. But I was asking specifically about the trustee side of the business. A $5M trust at Vanguard would be charged much less than 1% and the Vanguard funds in which it would be invested would have very low expense ratios. Assuming V...
by afan
Wed Nov 29, 2017 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 1923

Re: Estate planning question (should we add beneficiaries to savings account?)

So far no one has articulated a good reason for the TOD approach. Lots of problems and no advantages. In my vast experience of serving as a personal representative once, I got access to the assets once I got my letters of administration, which took a few weeks. In this one case, most of the money wa...
by afan
Wed Nov 29, 2017 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

Are all of Vanguard's economies on the lack of physical branches? Or do they save money elsewhere, behind the scenes? Would the places you worked have been able to compete with Vanguard on price?
by afan
Wed Nov 29, 2017 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

If you read the OP follow up it's not 34 funds. It's individual stocks and a couple of bond funds. This isn't an unusual set up for a Trust that may have been decades old. Selling blue chip stocks which were purchased many years ago in order to go "all in" for a low cost mutual fund may trigger som...
by afan
Wed Nov 29, 2017 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

Gill, Very interesting. A few questions What is different about the Vanguard operation that makes management think they can break even or turn a profit while charging much lower rates than traditional banks? Is all the money saved by doing business online and over the phone, without having clients v...
by afan
Wed Nov 29, 2017 7:09 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

And to repeat: An independent trustee need not be a corporate trustee. Sometimes either the legal relationships within the trust, or the capacity of the individuals involved makes a corporate trustee the best choice. But as bsteiner and Gill have explained elsewhere "independent" is a legal term wit...
by afan
Wed Nov 29, 2017 6:42 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

For a different perspective, I was a trustee and beneficiary of a (childless) relative's trust (and had medical POA). It was a LOT of work, I had a full time job, a family to support, and the relative was sick for several years before passing away. The hardest part was obtaining and following up on...
by afan
Tue Nov 28, 2017 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

OP, Even if you pick a relative to be your trustee, they are often allowed to collect 1% a year for their efforts, although many don't take anything if they are also a beneficiary. If you were appointed the trustee for your aunt's trust, but not her beneficiary, would you gladly do it for 0.5% or w...
by afan
Tue Nov 28, 2017 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

I have heard that other trust companies would do this but I had so much finding them a while ago when I was searching that I gave up. Among the appeals of Vanguard and Schwab are their large national presence and preparedness to deal with clients where ever they live. In my search many companies wan...
by afan
Tue Nov 28, 2017 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

Vanguard is 0.55% on the first $5 million, and less above $5 million: https://personal.vanguard.com/pdf/s341.pdf?2210071322. (See page 11.) Has anyone had any experience with Vanguard as trustee where someone named Vanguard as a trustee and has died so that the trusts under his/her Will have taken ...
by afan
Tue Nov 28, 2017 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

Banks and trust companies typically charge about 1%, a bit more on small trusts and less on large ones. That includes the investment management. The bank or trust company would say that their fee is primarily for the investment management, since they would charge about the same (perhaps slightly le...
by afan
Tue Nov 28, 2017 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

I agree that the grantor of the trust designed it this way expressly to prevent you/other beneficiaries from controlling/accessing the funds prior to the designated ages. I'd suggest you work to appreciate the huge gift you've been given and to respect the grantor's wishes in the administration and...
by afan
Tue Nov 28, 2017 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

If you can invoke the provisions to change trustees, then you may be able to reduce the cost and get a more rational portfolio. It is unlikely anyone would accept the responsibility of trustee and agree to invest 100% in a domestic stock fund. Maybe they would agree to do a single balanced fund. Or ...
by afan
Mon Nov 27, 2017 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

That seems harsh. 1% of assets and 34 investments does not sound like a great service. It could be worth investigating changing trustees to a company or person who will charge less and give up the active management. Depending on the size of the trust you could save 0.5% or more per year. Spendthrift...
by afan
Mon Nov 27, 2017 7:34 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Trades Reveal Institutiinal Truths
Replies: 3
Views: 978

Re: Larry Swedroe: Trades Reveal Institutiinal Truths

Well, maybe. Many of these institutional investors are tax exempt- pension plans and endowments, for example. They gain nothing from loss harvesting because they pay no taxes anyway. Many mutual funds are held by some combination of taxable, tax deferred and tax exempt investors. The funds market th...
by afan
Mon Nov 27, 2017 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: The fallacy of spending money on "experiences" vs hard assets
Replies: 336
Views: 17403

Re: The fallacy of spending money on "experiences" vs hard assets

Physical objects can be anywhere along a spectrum of deep, immediate drop in value to long term growth. Some things depreciate rapidly, like fresh fruit. Some things last for very long times and their value may increase or decrease over time, like gold bars. Some things one expects will increase in ...
by afan
Mon Nov 27, 2017 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: The fallacy of spending money on "experiences" vs hard assets
Replies: 336
Views: 17403

Re: The fallacy of spending money on "experiences" vs hard assets

I would point out that my favorite purchases, VTI and VWITX, are not expected to depreciate over the long term. They can go down short term, VTI more likely than VWITX. But long after I have forgotten purchased experiences it is likely both will be worth more than I paid for them. Although I can tel...
by afan
Mon Nov 27, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

If you go the route of finding a different corporate trustee Vanguard will probably charge a lot less and will be quite happy to run an all index fund portfolio. As of a few years ago Schwab would serve as administrative trustee for much less than 1%. You had to arrange for an investment advisor fro...
by afan
Mon Nov 27, 2017 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4359

Re: Independent Trustee Actively Managing Trust Account

Depending on the terms of the trust, the trustee might be able to distribute funds to you to purchase the property. It may or may not agree to do this, even if permitted. You could discuss with the other trustees, I assume individuals, not other banks, the possibility of moving to a different truste...