Search found 4729 matches

by afan
Tue May 26, 2020 6:48 pm
Forum: Personal Investments
Topic: Tax exempt munis vs Treasury or both in Taxable
Replies: 4
Views: 441

Re: Tax exempt munis vs Treasury or both in Taxable

The main advantage of the treasury funds would be higher credit quality than the munis. You give up some after-tax yield to get that safety. A combination of short, intermediate and long term bond funds gets you something in between. Depending on the mix of the funds, the duration would be A. Same a...
by afan
Tue May 26, 2020 6:26 pm
Forum: Personal Investments
Topic: Claiming life insurance policy
Replies: 4
Views: 405

Re: Claiming life insurance policy

Definitely a question for a matrimonial attorney who knows your situation and the law in your state. Far too much at stake to make any decisions based on what you can look up yourself on the internet.
by afan
Tue May 26, 2020 6:23 pm
Forum: Personal Investments
Topic: Transferring large managed brokerage to Schwab, please help and review my plan!
Replies: 32
Views: 1434

Re: Transferring large managed brokerage to Schwab, please help and review my plan!

You would use tax exempt bonds in your taxable account if the after-tax yield is higher than it would be for taxable bonds. That depends on your marginal tax bracket. TIPS provide you protection against higher than expected inflation. I don't know of any municipal bond funds that offer this protecti...
by afan
Tue May 26, 2020 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Help understanding Credit Utilization (new to credit cards)
Replies: 14
Views: 618

Re: Help understanding Credit Utilization (new to credit cards)

One of the crazy things about credit utilization is that they really mean it about % utilization. When I increased my credit limit on our main card without increasing spending, my score went up. I don't know whether there is any negative effect of increasing credit limit but having a high limit comb...
by afan
Sun May 24, 2020 11:24 am
Forum: Personal Investments
Topic: Father's Trust: Simplify Morgan Stanley Portfolio?
Replies: 10
Views: 606

Re: Father's Trust: Simplify Morgan Stanley Portfolio?

Have the trustee open an account at Fidelity and transfer the assets. Check with Fidelity whether any would not transfer. Fidelity will handle everything including contacting MS.

You can get out of Morgan Stanley and save the fees. Then decide whether to sell or keep the Investments.
by afan
Sun May 24, 2020 9:44 am
Forum: Personal Investments
Topic: Father's Trust: Simplify Morgan Stanley Portfolio?
Replies: 10
Views: 606

Re: Father's Trust: Simplify Morgan Stanley Portfolio?

The transfer would need to be done by the trustee. Are you the trustee now or only the successor? If you are not trustee now, then you would need the trustee to do it, or get yourself appointed as trustee. The sticks should simply transfer to another broker. There would be no tax implications but th...
by afan
Sun May 24, 2020 9:22 am
Forum: Investing - Theory, News & General
Topic: Do you hold commodities?
Replies: 26
Views: 1579

Re: Do you hold commodities?

Here at BHs, when the major advocate of owning PCRIX at a noticeable fraction of portfolio, stopped talking about it, that should have been interpreted as a sell signal, which I fully missed. It was not a sell signal. It got to the point that advocating commodities was destroying credibility, so he...
by afan
Sun May 24, 2020 9:15 am
Forum: Investing - Theory, News & General
Topic: Do you hold commodities?
Replies: 26
Views: 1579

Re: Do you hold commodities?

There are two classes of people who hold commodities. Those with a rational reason have their financial futures affected by the prices of at least some commodities. If you work in oil exploration, then your livelihood depends in part on oil prices. You are already in the commodities markets and the ...
by afan
Sat May 23, 2020 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard as Trustee of Estate Trust
Replies: 99
Views: 5504

Re: Vanguard as Trustee of Estate Trust

Exactly what constitutes commingling would depend on the law of the state and the circumstances in a given case. It is not easy to avoid commingling. Trusting that one's heirs can avoid commingling is at best a gamble. Paying taxes on a separate property asset from marital assets or using a separate...
by afan
Fri May 22, 2020 6:28 am
Forum: Personal Investments
Topic: Is Vanguard's Personal Advisor Service Worth It???
Replies: 67
Views: 5140

Re: Is Vanguard's Personal Advisor Service Worth It???

I can think of no reason to care whether you are in mutual funds or etfs. At Vanguard, these are different classes of the same funds. There is no reason to pay anyone to manage your portfolio. Post your information here and people will give you a portfolio for free. If you want to pay for something ...
by afan
Thu May 21, 2020 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Successor Trustee
Replies: 4
Views: 243

Re: Successor Trustee

This successor trustee would have a conflict, since they are a remainderman. Interesting to hear what the experts say.
by afan
Wed May 20, 2020 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1888

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

They're basically administrative trustees. You use them to take advantage of their state law: asset protection (either for its own sake or to let you create a trust to avoid state income tax and still be a beneficiary), avoiding state income tax, long or unlimited perpetuities period, etc. They'll ...
by afan
Wed May 20, 2020 6:44 am
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1888

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

That's a good summary afan. Thanks for posting it. I know SD comes up a lot. We've also talked about Nevada. I believe that there are trust companies in these states that will perform bare minimum trustee tasks (likely to exclude any investment or distribution decisions), at very small prices, in o...
by afan
Tue May 19, 2020 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1888

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

The states that have enacted strong asset protection legislation are commonly referred to as "asset protections states". One could change the site of administration. For those looking to avail themselves of the asset protection benefits of trusts, for themselves or for their heirs, against most cred...
by afan
Tue May 19, 2020 8:20 am
Forum: Investing - Theory, News & General
Topic: Rethinking Fees and Challenging the Status Quo with Rick Ferri
Replies: 4
Views: 786

Re: Rethinking Fees and Challenging the Status Quo with Rick Ferri

Rick you are right that bills for services provided, as is common for almost any other kind of service, is the best model for clients. How realistic is it for advisers? Over the years as I bring this up I am accused of being anti adviser. I am just anti over charging. How many advisers could survive...
by afan
Thu May 14, 2020 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

If you want someone to manage your portfolio, you do not need a trust. There are thousands of invididuals and firms that will be happy to do that without a trust. Vanguard PAS, among many others.
by afan
Thu May 14, 2020 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Re divorce: One has no idea where their heirs may live decades from now. Treatment of inherited property in divorce is not one of the common criteria for choosing where to live. One chooses a corporate trustee if they are needed to accomplish one's goals. If the beneficiaries can manage fine without...
by afan
Thu May 14, 2020 7:09 am
Forum: Personal Finance (Not Investing)
Topic: Does Delaying Social Security Deliver an 8% Return?
Replies: 92
Views: 7425

Re: Does Delaying Social Security Deliver an 8% Return?

It seems like if this is really true, it would create a great arbitrage opportunity. Retiree turns 62--financial institution pays them each month what they would have gotten from SS, plus say 4%. Then if and when the retiree turns 70, they receive the higher SS payments and pay the financial instit...
by afan
Wed May 13, 2020 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

With especially us men living longer the inheritances show up later. Possibly after when they would or could have best effect. I chose those ages because: 20: College expenses. 25-35: Down payment on a house and early childhood expenses like daycare, or establishing a small business. 45-55 College ...
by afan
Wed May 13, 2020 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

. because Debtor may not participate in making distributions to herself as a co-trustee, she, however, would be similarly limited as sole trustee and would not gain sufficient control over the Marital Trust. (Id., at 13.) Therefore, the bankruptcy court held that neither the trustees' enumerated po...
by afan
Wed May 13, 2020 12:32 pm
Forum: Investing - Theory, News & General
Topic: Is Warren Buffett's investing approach outdated?
Replies: 16
Views: 1406

Re: Is Warren Buffett's investing approach outdated?

Warren Buffett made a huge amount of money, many years ago. One could interpret what happened thereafter as "lost his touch", "running too much money", or simply "regression to.the mean". Buffett has an amiable folksy style that plays very well on TV. I enjoy his interviews. He is an active manager ...
by afan
Wed May 13, 2020 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Cost of revocable trusts, wills, estate planning
Replies: 25
Views: 1893

Re: Cost of revocable trusts, wills, estate planning

A single person with no dependants could probably do fine with a very simple plan drafted by an attorney with limited experience in estate planning. If you have a spouse or kids who will need the money you leave then it pays to get it dine right, using an expert. In prior threads on this question th...
by afan
Wed May 13, 2020 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Not paying auto insurance rather than cancelling
Replies: 32
Views: 2224

Re: Not paying auto insurance rather than cancelling

I would worry about the effect on credit rating as well. Many financial institutions severely limit what can be done by email. They may want more proof that the message they receive is from you. Drop them a letter. Send back the bill with a notice that you are cancelling. The Postal Service still ex...
by afan
Wed May 13, 2020 6:54 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

If you cannot find someone who will do it for free AND THE BENEFICIARIES CANNOT DO IT THEMSELVES, then you need to hire a trustee. You only need to hire a trustee under these circumstances. HAVING A TRUST DOES NOT REQUIRE HAVING A PAID TRUSTEE. My understanding is that you lose most of the asset pr...
by afan
Wed May 13, 2020 6:31 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

oldfort wrote:
Tue May 12, 2020 8:12 pm

If you want the asset protection benefits of the trust, the beneficiary cannot be the sole trustee. There must always be a co-trustee, who is not a beneficiary.
This is incorrect.
by afan
Tue May 12, 2020 8:33 pm
Forum: Investing - Theory, News & General
Topic: Anyone considering Commodity futures?
Replies: 16
Views: 690

Re: Anyone considering Commodity futures?

I heard of this great little fund. Not many know about it but the in crowd says it is the thing to buy.

VTI
by afan
Tue May 12, 2020 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

If you don't need a corporate trustee, which is what costs money for a trust, then don't hire one and save the money. So the trust is better. If you don't need a paid trustee then the trust is no more expensive. I think you are misunderstanding the "lock-in" aspect of an asset protection trust, tho...
by afan
Tue May 12, 2020 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Late 30s beneficiary here. Ivy League education plus MBA plus corporate trustee. It is annoying and humiliating to have to request distributions. Not to mention the infuriating fees and active trading. That said, probably still worth it as the money will be out of my generations estate. Do you have...
by afan
Tue May 12, 2020 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

If you need a corporate trustee, it would not be because you have a trust. It would be because you need their services. Individual trustees have their own share of issues. If you want a trust to last for the rest of your kids lives, and perhaps thereafter, then someone has to be trustee after almos...
by afan
Tue May 12, 2020 7:36 pm
Forum: Investing - Theory, News & General
Topic: Experts say now is not the time to buy into index fund
Replies: 38
Views: 4514

Re: Experts say now is not the time to buy into index fund

"Experts" say "pay me a commission" or "pay me an AUM fee"

Beyond that, the details don't matter.
by afan
Tue May 12, 2020 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

If bonds return 0% real and stocks return 5% real, going forward, then a 50/50 portfolio should be expected to return on average 2.5% real. Ignoring sequence of returns, the trust should be expected to provide distributions of 2.5%. If you pay a trustee 1% a year to manage it, the distributions to ...
by afan
Tue May 12, 2020 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Nine percent chance of divorce seems overly optimistic. I would put that figure much higher. Last I heard it was around 40% for first marriages. If you don't know anything about your children, sure, maybe I would use 40%. Even at 40%, in my example the expected value of non-trust is higher. If you ...
by afan
Tue May 12, 2020 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Nine percent chance of divorce seems overly optimistic. I would put that figure much higher. Last I heard it was around 40% for first marriages. Hardly negligible. You do not have to hire a corporate trustee. The times when one would use a corporate trustee would be those when that level of knowledg...
by afan
Tue May 12, 2020 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Appraiser is asking for more money in the middle of refinance process, legal?
Replies: 36
Views: 3220

Re: Appraiser is asking for more money in the middle of refinance process, legal?

When it happened to us it was during a boom time for purchases and refinancing. The lender had trouble finding any appraiser at all. Apparently the demand for appraisals exceeded the supply of appraisers. In our case the appraiser apparently said that when they took the assignment that they did not ...
by afan
Tue May 12, 2020 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Remember "long term financial health" isn't always the goal. Maybe the adult children are so financially responsible that they aren't buying the bigger house or new car or vacation that they'd really enjoy, but the gift would push them to do that. And maybe you'd enjoy seeing them enjoy those thing...
by afan
Tue May 12, 2020 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

... https://www.investmentnews.com/dynasty-trusts-a-way-to-let-the-wealthy-duck-estate-gift-taxes-forever-37813 “Jeffrey Thomasson, 52, may pass on more than $100 million to heirs using an estate-planning strategy for avoiding gift and estate taxes. Thomasson, who lives in Indianapolis, said he’s f...
by afan
Tue May 12, 2020 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Late 30s beneficiary here. Ivy League education plus MBA plus corporate trustee. It is annoying and humiliating to have to request distributions. Not to mention the infuriating fees and active trading. That said, probably still worth it as the money will be out of my generations estate. Do you have...
by afan
Tue May 12, 2020 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

In the first sentence the grantor has already used up their gift tax exclusion amount, so the entire $100 million would be subject to gift tax. In the second sentence, the grantor has not used any of the exclusion, so the first $11,580,000 would not be taxed. Losing the stepped up basis is a drawbac...
by afan
Mon May 11, 2020 5:38 pm
Forum: Investing - Theory, News & General
Topic: Adjust Asset Allocation when 90 or older?
Replies: 21
Views: 1422

Re: Adjust Asset Allocation when 90 or older?

Confused. The advice on money needed in the short term assumes you need to spend it in a few years. If you are talking about leaving it for the next generation, then the risk of short term loss only matters if the heirs would need to spend the money in the short term. But the heirs don't know how lo...
by afan
Mon May 11, 2020 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Appraiser is asking for more money in the middle of refinance process, legal?
Replies: 36
Views: 3220

Re: Appraiser is asking for more money in the middle of refinance process, legal?

We had a similar event from an appraiser the last time we refinanced. We said no and the lender ended up waiving the appraisal. The appraiser got nothing and the loan went through.
by afan
Mon May 11, 2020 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

It is perfectly reasonable to respect your child as a responsible person but also to believe that they do not look at the world in a way that would let them manage the investments well. One of our kids is frugal and responsible. Would never blow an inheritance on fast living. Wonderful loyal friend ...
by afan
Mon May 11, 2020 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

I will suggest another idea which my wife and I adopted many years ago. Instead of waiting until your death to distribute your daughter's inheritance, consider giving her part of her inheritance now in the form of a monthly gift while she probably needs it most. Best wishes. Taylor This assumes you...
by afan
Mon May 11, 2020 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Vanguard it seems would avoid active management and put the money in low cost cap weighted index funds. The stock/bond allocation might be something to discuss with them as you are looking for corporate trustees. The trustee would have to consider the potential current needs of the beneficiary, whic...
by afan
Mon May 11, 2020 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Of course, the estate tax exclusion amount has varied over time, is scheduled to drop dramatically in a few years and no one has any idea what it may be decades from now. Keeping assets out of your heirs' estates helps them with their estate planning and is essentially "free". They need not pay a co...
by afan
Mon May 11, 2020 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8893

Re: Should we create a testamentary trust for $6M estate?

Your lawyer will remind you to make sure that the trust is the beneficiary of the life insurance. If possible, find out form of the inheritance you are to receive. Will it be in trust for you with your daughter becoming the beneficiary on your death? If so, then the inheritance will not be in your e...
by afan
Sun May 10, 2020 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Unhappy with job (MD) - need perspective
Replies: 27
Views: 4351

Re: Unhappy with job (MD) - need perspective

From an income perspective, depending on where you are training, you may be able to earn more money in another country.
Internists in the US are relatively low on the pay scale as American doctors go, but they make more than you are indicating.
by afan
Sun May 10, 2020 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Help please creating protective, spendthrift, and living trusts.
Replies: 8
Views: 819

Re: Help please creating protective, spendthrift, and living trusts.

The wonders of competition.
Schwab is undercutting Vanguard on price plus it will do real estate, home, second home and small investment properties.

Anyone have experience with Schwab as a trustee?
Will they do a simple 3 fund portfolio of near zero cost cap weighted index funds?
by afan
Sun May 10, 2020 7:55 am
Forum: Investing - Theory, News & General
Topic: Vanguard Precious Metals and Mining Fund is changing
Replies: 95
Views: 18790

Re: Vanguard Precious Metals and Mining Fund is changing

I have to say I am extemely upset by Vanguard’s actions here. I have my I-401k with Vanguard, and was contributing a substantial amount of my retirement contributions over the last 3 years to this fund. I understood the risks investing in a sector specific fund, and it was my risk to take (not look...
by afan
Sun May 10, 2020 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Help please creating protective, spendthrift, and living trusts.
Replies: 8
Views: 819

Re: Help please creating protective, spendthrift, and living trusts.

Seeing my name in the same sentence as bsteiner was shocking. To be clear, Steiner is an expert trusts and estates attorney with decades of experience. He donates his vast expertise to educate us on this forum, for which we are all grateful. I am a consumer of estate planning services and like to kn...
by afan
Sat May 09, 2020 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Owner of home created trust for home with "intent" to transfer title, but did not. Status of trust?
Replies: 26
Views: 1595

Re: Owner of home created trust for home with "intent" to transfer title, but did not. Status of trust?

Whether it is worth being trustee would depend on whether there is enough emotional attachment to the owner or enough money at stake for you to be worth investigating. If the owner is not willing to go back to an attorney to finish the estate plan, then you would be paying for a lawyer to figure it ...