Search found 3534 matches

by afan
Sat Jul 14, 2018 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Inherited retirement account
Replies: 11
Views: 1159

Re: Inherited retirement account

The simplest thing would be for her to take it as her own IRA and take out the RMDs based on her age. If she ABSOLUTELY, POSITIVELY, NO POSSIBLE WAY THIS COULD BE WRONG, will NEVER need the money then she can CONSIDER disclaiming. Once she disclaims, the money is gone. I would have been extremely un...
by afan
Fri Jul 13, 2018 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Living Revocable Trust - conveyance of assets
Replies: 11
Views: 734

Re: Living Revocable Trust - conveyance of assets

For most of your assets retitling is so easy it would be silly to pay someone to do it. There will be forms for bank accounts, brokerage accounts, etc. If you have real estate in the trust then that would require a change with your local municipality. How much it costs and how hard it is depends on ...
by afan
Thu Jul 12, 2018 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: estate trust for kids for a brokerage account
Replies: 2
Views: 295

Re: estate trust for kids for a brokerage account

Well, tough to satisfy all those desires. I gather this money is separate than your savings for college. Is that correct? If it is college savings, then a 529 would be a great idea. If you want to own the money yourself, then you don't need to do anything special. Save, invest the money and spend it...
by afan
Thu Jul 12, 2018 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: What kind of tax professional to look for?
Replies: 14
Views: 797

Re: What kind of tax professional to look for?

But this is really a pure tax question, so I agree with the suggestion of an enrolled agent. Experts in tax, many CPA's are not, cheaper than lawyers or accountants. It's worth noting that there is no requirement than an enrolled agent know anything about state and local tax. They are primarily tes...
by afan
Thu Jul 12, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: COMING SOON: BOGLEHEADS PODCASTS
Replies: 340
Views: 9637

Re: COMING SOON: BOGLEHEADS PODCASTS

I don't have suggestions for a title. interviewing a number of people from the world of finance and investing would be great. But I would love to hear a good amount of Rick's thoughts on investing, without the need to accommodate someone else in the podcast. We all get a lot out of Rick's posts, and...
by afan
Thu Jul 12, 2018 7:14 am
Forum: Investing - Theory, News & General
Topic: US Treasuries vs Munis in taxable
Replies: 6
Views: 1051

Re: US Treasuries vs Munis in taxable

According to Portfolio Visualizer April 2001-present VWIUX had higher return and higher Sharpe ratio than BMBIX. VWIUX had a very slightly higher standard deviation, by 0.07%. Negligible. BMBIX had a worst year drawdown of -1.19%, slightly better than VWIUX worst year of -1.48%. This period included...
by afan
Wed Jul 11, 2018 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: What kind of tax professional to look for?
Replies: 14
Views: 797

Re: What kind of tax professional to look for?

An enrolled agent could run the numbers and tell you the tax consequences of retiring in place vs. the new state to which you might move. Then you can compare and decide what to do. I gather you have chosen your alternate state and it does have a state income tax? There are no legal issues. You don'...
by afan
Wed Jul 11, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7377

Re: Whole Life - We're doing it. What to look for?

For some reason it appears everyone else can see the illustration. For me all I see is "image" which does not display anything. So I am going by what others are saying they saw. They are saying that the premium is $920/year, guaranteed. They are saying that, from year one, the cash value is equal to...
by afan
Wed Jul 11, 2018 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: What kind of tax professional to look for?
Replies: 14
Views: 797

Re: What kind of tax professional to look for?

From what you describe a tax attorney would be wholly inappropriate. It is not clear that you need a tax professional at all. I suggest you first post your questions on here. There are a lot of very knowledgeable people on the forum and we don't even know that your issues are complicated. If you des...
by afan
Wed Jul 11, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: I Now Have a Revocable Trust and Have Questions
Replies: 14
Views: 1310

Re: I Now Have a Revocable Trust and Have Questions

Absurd as it sounds to disagree with bsteiner on the subject of estate planning, here goes. An attorney who tells you they don't know much about trusts and then gives you a trust that requires distributing all assets in a year is not an estate planning expert. That makes me nervous about what the re...
by afan
Tue Jul 10, 2018 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7377

Re: Whole Life - We're doing it. What to look for?

JBTX wrote:
Tue Jul 10, 2018 12:44 pm

The numbers he posted showed "guaranteed cash value". If dividends accrue it could be a little higher.
Thanks. I could not see the illustration.
by afan
Tue Jul 10, 2018 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Grandmas Living Trust... Need Advice
Replies: 22
Views: 1356

Re: Grandmas Living Trust... Need Advice

I don't understand the annuities. If they are currently paying, what does it mean to say that there is, for example $400,000? Did she pay $400,000 to purchase these annuities, which have now annuitized? If so, then they will keep paying for her life, or perhaps a term certain, but they are not worth...
by afan
Tue Jul 10, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7377

Re: Whole Life - We're doing it. What to look for?

If the SO has shopped for term coverage and really cannot get a policy, or the premiums for term would be higher than this whole life policy, then this policy is the least expensive way to get additional life insurance. From what the OP posted, it is not clear that any additional life insurance is n...
by afan
Sun Jul 08, 2018 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Borrow for BigLaw Partnership Buy-in?
Replies: 26
Views: 3968

Re: Borrow for BigLaw Partnership Buy-in?

James and Bleck give excellent advice. The people running your firm should be able to walk you through how much this will cost, what your cash flow should be and the tax implications. I have seen associates surprised that their take home went down for a while after they made partner. Long term it wa...
by afan
Sun Jul 08, 2018 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Borrow for BigLaw Partnership Buy-in?
Replies: 26
Views: 3968

Re: Borrow for BigLaw Partnership Buy-in?

Don't reduce your tax favored savings to do the buy in. If you pass up a chance to svae this year you never get that opportunity back. You do not indicate your expected income, base salary or year end bonus. From equity partner at a national firm, it sounds like the $150k will quickly seem like a sm...
by afan
Fri Jul 06, 2018 5:03 pm
Forum: Investing - Theory, News & General
Topic: Anyone tilting heavy to international based on current forecasts?
Replies: 38
Views: 3920

Re: Anyone tilting heavy to international based on current forecasts?

I have an international allocation, but I don't adjust it based on market forecasts. To do so would require me to have a lot of confidence in those forecasts. Among the reasons I don't have such confidence is that I have never seen one of the forecasters present data on the accuracy of their previou...
by afan
Fri Jul 06, 2018 10:56 am
Forum: Investing - Theory, News & General
Topic: Active Management Justification
Replies: 33
Views: 1805

Re: Active Management Justification

https://us.spindices.com/documents/research/research-risk-adjusted-spiva-scorecard.pdf This time the SPIVA report also calculated Sharpe ratios. For international funds the message was the same as for domestic. For Global funds, international funds, international small cap and emerging markets funds...
by afan
Fri Jul 06, 2018 10:06 am
Forum: Personal Finance (Not Investing)
Topic: 10 years to lose wealth applicable to bogleheads ?
Replies: 32
Views: 3679

Re: 10 years to lose wealth applicable to bogleheads ?

The article did not say anything about losing wealth. It just said that people drop out of the top 1% for income. as others have noted, many people who spend some time in the top 1% figure they have enough, retire or cut back working, and drop out. Many successful professionals and corporate executi...
by afan
Fri Jul 06, 2018 8:36 am
Forum: Personal Finance (Not Investing)
Topic: W-4 allowances: why not withhold the minimum to avoid penalty?
Replies: 17
Views: 1292

Re: W-4 allowances: why not withhold the minimum to avoid penalty?

You should generally withhold the minimum required to avoid a penalty. In theory it could pay to withhold even less, if your return on that invested money will be larger than the penalty. People rarely have assured returns that high, so this can be a risky game to play. I was a little confused betwe...
by afan
Fri Jul 06, 2018 8:29 am
Forum: Personal Finance (Not Investing)
Topic: 10 years to lose wealth applicable to bogleheads ?
Replies: 32
Views: 3679

Re: 10 years to lose wealth applicable to bogleheads ?

I did not see that they excluded those who had retired. Reading this forum it is clear that many people who hit 60 with 8 years of top 1% income will retire rather than continue working. If a large share of the higher earners are late in their working lives, this result sounds less interesting. For ...
by afan
Thu Jul 05, 2018 4:16 pm
Forum: Investing - Theory, News & General
Topic: Do Advisers Add $$$ Value?
Replies: 71
Views: 5371

Re: Do Advisers Add $$$ Value?

If we are talking only about an investment manager, not a more comprehensive financial advisor, then it is very difficult for them to add value over a simple index approach. If one wants an investment plan to start, then consulting an advice only planner for an asset allocation would make sense. The...
by afan
Wed Jul 04, 2018 1:21 pm
Forum: Investing - Theory, News & General
Topic: Statistically significant alpha?
Replies: 26
Views: 1691

Re: Statistically significant alpha?

Oh please. You think this is "my" opinion? You seem interested in the topic. Here are some thoughts from statisticians who know more than you or me. I'd be happy to continue the conversation after you have educated yourself. I'll reply to substantive issues, but am finished engaging with your ad ho...
by afan
Tue Jul 03, 2018 5:16 pm
Forum: Investing - Theory, News & General
Topic: Statistically significant alpha?
Replies: 26
Views: 1691

Re: Statistically significant alpha?

Harvey is hardly the only person who publishes on this topic. Methods for analyzing economic and financial data are a large part of the math requirements for advanced degrees in those fields. Nonparametric tests are usually less powerful than parametric alternatives. So using them means giving up so...
by afan
Tue Jul 03, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: Statistically significant alpha?
Replies: 26
Views: 1691

Re: Statistically significant alpha?

Sorry to be cynical, but a) doing valid statistics on financial data would be really hard and quite interesting, and b) as nearly as I can tell, the practitioners do not even try. You'd have thought there would be a whole subdiscipline of "financial statistics" and books of specially-designed tests...
by afan
Tue Jul 03, 2018 2:43 pm
Forum: Investing - Theory, News & General
Topic: Statistically significant alpha?
Replies: 26
Views: 1691

Re: Statistically significant alpha?

One fairly simple method for addressing this, used in the analytics field, is to split your dataset in two. In the first, you data mine for significant results. You then take only those variables that were significant and test them in the second dataset to determine whether they remain significant....
by afan
Tue Jul 03, 2018 1:13 pm
Forum: Investing - Theory, News & General
Topic: Statistically significant alpha?
Replies: 26
Views: 1691

Re: Statistically significant alpha?

Difficult to interpret for the reasons noted above. Also, remember that the p value is only meaningful if one did what is assumed in generating that number: Identified the hypothesis prospectively, then tested it on that one fund. If one instead combed through a large number of funds and focused on ...
by afan
Tue Jul 03, 2018 11:20 am
Forum: Investing - Theory, News & General
Topic: The Power of Working Longer
Replies: 185
Views: 18589

Re: The Power of Working Longer

With all due respect to those criticizing the study, assuming 100% annuitization is the right way to do it. They are trying to predict a lifetime income stream available from a given level of assets. The way to get a CERTAIN income from a given networth is to convert it all to annuities. The alterna...
by afan
Tue Jul 03, 2018 5:10 am
Forum: Personal Finance (Not Investing)
Topic: Step to revoke RLT ; / define 'extensive changes' Trust
Replies: 7
Views: 441

Re: Step to revoke RLT ; / define 'extensive changes' Trust

You definitely need the help of an attorney expert in estate planning. They would not have had you attempt to put your retirement account into your RLT. They would have at least discussed having a trust as the beneficiary of your retirement assets. From what you have described I don't see a reason t...
by afan
Mon Jul 02, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: How to document a verbal conversation for future legal reasons.
Replies: 21
Views: 2929

Re: How to document a verbal conversation for future legal reasons.

If this is important then you should consult a lawyer. I am not a lawyer. I have seen cases where two parties, who were by that time adversaries, stated very different recollections of conversations. Without a written agreement all the lawyer's could agree on was that they disagreed. If this convers...
by afan
Mon Jul 02, 2018 12:11 pm
Forum: Investing - Theory, News & General
Topic: Do Advisers Add $$$ Value?
Replies: 71
Views: 5371

Re: Do Advisers Add $$$ Value?

Ah, the famously misleading DALBAR study. Actually, the difference arises because not many individuals put in a lump sum at the start of a period and leave it there. Most of us contribute more money periodically as we cash paychecks. Many retirees make regular withdrawals, to satisfy RMD mandates or...
by afan
Sun Jul 01, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: What discount rate should be used when determining the optimum social security claiming strategy?
Replies: 11
Views: 508

Re: What discount rate should be used when determining the optimum social security claiming strategy?

I went through the same thought process as the OP and ended up the same place- making a guess at a discount rate of 2%. Then I ran calculations as discount rates from zero to 5%. They changed the NPV's of course, but did not seem to have much effect on the claiming strategy. In one interesting devel...
by afan
Sun Jul 01, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: Do Advisers Add $$$ Value?
Replies: 71
Views: 5371

Re: Do Advisers Add $$$ Value?

The most reliable and profitable way for an advisor to make money is by charging an percent of AUM. This provides a steady return of high fees. Given how little work is involved in managing a portfolio, the advisor can generate fees of thousands to tens of thousands of dollars per hour. No wonder th...
by afan
Sat Jun 30, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Umbrella Policy: Right amount for $7 mil net worth?
Replies: 54
Views: 6621

Re: Umbrella Policy: Right amount for $7 mil net worth?

I have a good friend who is an attorney with long experience doing defense work, but not personal injury. According to him, insurance companies are expert at understanding the level of risk for a particular case and the level of legal skill required to defend it. They will have a stable of perfectly...
by afan
Sat Jun 30, 2018 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard is really pushing their Personal Adviser Service
Replies: 65
Views: 6196

Re: Vanguard is really pushing their Personal Adviser Service

Although I agree that those would be part of managing investments, I cannot agree that it is remotely complex. Most of this is deeply in "set it and forget it" territory. A compulsive Boglehead might manage to devote an hour per year to staying on top of that list. A calmer person might check their ...
by afan
Fri Jun 29, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Will? Trust? Other?
Replies: 12
Views: 598

Re: Will? Trust? Other?

That is true. However, investment management, like trust services, comes at different costs from different companies. One can get investment management for a lot less than 1%. Serving as a trustee involves more work and liability for the company, so it is more expensive than investment management al...
by afan
Thu Jun 28, 2018 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Will? Trust? Other?
Replies: 12
Views: 598

Re: Will? Trust? Other?

If you don't have a younger person who could do this reliably, then a corporate trustee will not steal the money. Will not neglect to manage the investments and will not put money into hare brained schemes. This safety comes at a price.
by afan
Thu Jun 28, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard is really pushing their Personal Adviser Service
Replies: 65
Views: 6196

Re: Vanguard is really pushing their Personal Adviser Service

PAS is a good price as compared to most competitors. Unlike many other advisors that charge low fees, Vanguard will put clients in dirt cheap index funds. Some other companies may charge low fees for the asset management, but park the money in active funds with high expense ratios. I have no problem...
by afan
Thu Jun 28, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Will? Trust? Other?
Replies: 12
Views: 598

Re: Will? Trust? Other?

There are a lot of kinds of trusts. From what you describe, you could establish a revocable living trust with yourself as trustee. That trust could also include provisions for continuing as an irrevocable trust for your wife's benefit after your death. If you find yourself slowing down, you could hi...
by afan
Thu Jun 28, 2018 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard is really pushing their Personal Adviser Service
Replies: 65
Views: 6196

Re: Vanguard is really pushing their Personal Adviser Service

This year, they declined to offer her ANY recommendations whatsoever unless she signed on for their Advisory services. This is very good news. The best investment advice one might expect from such a source would be none at all. Whatever the reason Vanguard appears to be providing advice only for pe...
by afan
Thu Jun 28, 2018 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Second malpractice insurance necessary?
Replies: 27
Views: 2486

Re: Second malpractice insurance necessary?

It also depends on the details of the malpractice climate in your specialty in your region. Your insurance carrier will know this. If they feel confident that your risk is low, then I would accept that. For a doc, trying to read up on a few high profile cases gives a very limited view of what goes o...
by afan
Tue Jun 26, 2018 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Sibling wants to share house sale proceeds - best way to avoid gift taxes?
Replies: 20
Views: 2250

Re: Sibling wants to share house sale proceeds - best way to avoid gift taxes?

Just write the checks for the full amount and file one gift tax return. Actually, I think you could avoid the gift tax return entirely by taking the position it was just the settlement of an estate. No need to complicate things and no need to worry about ever having gift taxes. Gill But it is "many...
by afan
Tue Jun 26, 2018 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Niece & Vanguard as co-trustees
Replies: 13
Views: 949

Re: Niece & Vanguard as co-trustees

I am not a lawyer, so my experience is very limited. I only am aware of trust protectors as having certain specific powers that may never be exercised. I have not heard of them being responsible for ensuring that the trustee is following the terms of the trust. I am not usually a particularly trusti...
by afan
Tue Jun 26, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Niece & Vanguard as co-trustees
Replies: 13
Views: 949

Re: Niece & Vanguard as co-trustees

I should note that,. RIGHT NOW, I would be heavily inclined to pick Vanguard. But I am not picking a trustee right now.
by afan
Tue Jun 26, 2018 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Niece & Vanguard as co-trustees
Replies: 13
Views: 949

Re: Niece & Vanguard as co-trustees

I would hope my trustee would seek advice from an attorney, when it was needed. I would hope the trustee would consult an accountant, when that was needed. But I cannot see the point in including in my trust the instruction to "get help from appropriate people when necessary." If the trustee could n...
by afan
Tue Jun 26, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Creative Planning vs Vanguard PAS
Replies: 94
Views: 6040

Re: Creative Planning vs Vanguard PAS

Unless you are entering the CP portfolio AS IT WAS OVER THE YEARS, you are not comparing their results to the 4 fund portfolio. It is meaningless to compare what the CURRENT CP portfolio would have done in the past to what the 4 fund portfolio actually did. Wealthfront constantly tinkers with it's p...
by afan
Tue Jun 26, 2018 4:58 am
Forum: Personal Finance (Not Investing)
Topic: Second malpractice insurance necessary?
Replies: 27
Views: 2486

Re: Second malpractice insurance necessary?

Consult your current insurance company to see what it would cost to increase your coverage. If you are in a low risk specialty and few of your colleagues buy excess coverage that is probably your answer, but easy enough to check. If few people buy such insurance then the companies are confronted wit...
by afan
Mon Jun 25, 2018 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Niece & Vanguard as co-trustees
Replies: 13
Views: 949

Re: Niece & Vanguard as co-trustees

Just make sure there are provisions for changing trustees if necessary. Things change and what is a good corporate trustee now may not be ideal decades in the future. I assume your son could hire Vanguard as asset manager or co trustee if he wanted to? If your niece is going to administer the funds ...
by afan
Fri Jun 22, 2018 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Trustee for mom's estate: large reserve recommended
Replies: 21
Views: 1645

Re: Trustee for mom's estate: large reserve recommended

I have a relative who distributed too much. Found out that taxes and final bills were more than what was left. Had to make up the difference out of pocket. Relative was lucky that all the people who had received more than the should have eventually returned the excess. Could have been ugly otherwise.
by afan
Fri Jun 22, 2018 4:22 am
Forum: Personal Finance (Not Investing)
Topic: Will or Trust?
Replies: 51
Views: 3884

Re: Will or Trust?

For the goal of asset protection leaving the money to your heirs is much more reliable than creating a DAPT for yourself. That is why bsteiner noted that the effectiveness of the DAPT is a topic of debate. If you leave money to heirs but out of their estate by leaving it in trust for them then, no m...
by afan
Wed Jun 20, 2018 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Will or Trust?
Replies: 51
Views: 3884

Re: Will or Trust?

The wills that direct assets into a trust at death are creating trusts for the benefit of the beneficiaries. As discussed in this thread, this is the best way to provide for minor children or adults who are too young or otherwise unsuitable to manage the money themselves. It also provides some prote...