Search found 2880 matches

by afan
Sat Oct 14, 2017 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Help with retirement decision
Replies: 11
Views: 1371

Re: Help with retirement decision

Find out what monthly payment you cold get from an immediate annuity for $100,000. I suspect that the $515/month you would have to give up is more than you would get from an annuity. If I assume the pension is very safe, either a strong company or government or insured, then a good annuity is the ap...
by afan
Sat Oct 14, 2017 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Help with transferring R/E property into revocable trust.
Replies: 7
Views: 539

Re: Help with transferring R/E property into revocable trust.

I don't know the AZ specific answers, but as a broad generalization, you probably want the rental properties each in its own LLC. You could transfer your interest in the LLCs into a trust, if you can resolve which one.
by afan
Sat Oct 14, 2017 3:48 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 108
Views: 6322

Re: How long for hedonic adaptation to set in?

Experimenting in reverse does not require major life changes. I am not going to sell my too big house because it would be an enormous hassle to do so and move. But I can further cut back on those luxuries that I have tried and know do not appeal to me. It is easy for me because I find most of what I...
by afan
Fri Oct 13, 2017 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on home insurance and land vs structure value
Replies: 20
Views: 1081

Re: Thoughts on home insurance and land vs structure value

Then1% is a formula for calculating the dollar value of the deductible. Once calculated, then the dollar value is the deductible. The deductible would be the same for a claim of $1,000, a claim of $10,000 or a claim of $100,000.
by afan
Fri Oct 13, 2017 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Intentionally Defective Grantor Trust to avoid estate tax limit?
Replies: 20
Views: 1632

Re: Trust to avoid estate tax limit?

There is no reason a trust need have complicated investments. It could have a simple portfolio of 2-4 funds, with one brokerage statement covering the entire trust. You could easily do the tax return yourself. If you hired someone to do it for you it should not be expensive. Whether to distribute th...
by afan
Fri Oct 13, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Setting Beneficiary vs. Revocable Trust (probate)
Replies: 4
Views: 355

Re: Setting Beneficiary vs. Revocable Trust (probate)

But those probate court fees are a lot smaller than what an attorney might charge to manage the probate process. The attorney fees would be on top of the probate fees paid to the state. A big advantage of a trust would arise while you are alive. If you become incapacitated someone will need to manag...
by afan
Fri Oct 13, 2017 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on home insurance and land vs structure value
Replies: 20
Views: 1081

Re: Thoughts on home insurance and land vs structure value

Rather than underinsure the cost of rebuilding, we save money by carrying a large deductible. Having never filed a claim, we knew we are only concerned about big loses, like a major fire. If our house suffers smaller damage it would not be a hardship to just pay for it ourselves, so no reason to ins...
by afan
Fri Oct 13, 2017 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on home insurance and land vs structure value
Replies: 20
Views: 1081

Re: Thoughts on home insurance and land vs structure value

The market value is not much of a guide. You need your insurance company to estimate the cost of rebuilding your house. Unless you are a builder yourself it could be hard for you to come up with a reliable figure. You would have to take into account current building codes, costs of material and the ...
by afan
Mon Oct 09, 2017 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Betterment, $500k in cash, no taxable events to transfer?
Replies: 44
Views: 4410

Re: Betterment, $500k in cash, no taxable events to transfer?

The constant trading that betterment claims to do sounds like a nightmare come tax time. I would not have to spend that much extra time completing my taxes to wipe out whatever TLH benefit they claim. A handful of transactions could be done and reported with very little effort. Dozens or more purcha...
by afan
Sun Oct 08, 2017 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Why is TransUnion pushing True Identity vs credit freeze?
Replies: 28
Views: 9489

Re: Why is TransUnion pushing True Identity vs credit freeze?

We went with freezes rather than locks. The locks are new, seem to be unregulated and it is entirely unclear what they do. The language was vague and as CR points out the companies may be able to change what it means to lock. With a freeze they have to follow the laws. I am not sure it is true that ...
by afan
Thu Oct 05, 2017 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Sell individual stocks now after transfer to Vanguard?
Replies: 14
Views: 992

Re: Sell individual stocks now after transfer to Vanguard?

An alternative to selling all now might be to try to match sales with capital losses, if you have any. You might sell some this year and some next to avoid being kicked into a higher tax bracket. In part, it depends on the riskiness of the stocks. Those that are similar to the broad market- a collec...
by afan
Tue Oct 03, 2017 9:37 am
Forum: Personal Finance (Not Investing)
Topic: What's the purpose of having a child's name on a deed?
Replies: 41
Views: 3231

Re: What's the purpose of having a child's name on a deed?

Concerning JTWROS vs TIC, I know several families where gifted real estate is held as TIC. Each sibling could sell their share, but among the reasons they don't is the size of the tax bill this would produce. It would have been great news to them if they got a step up to the value as of the parent's...
by afan
Tue Oct 03, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: What's the purpose of having a child's name on a deed?
Replies: 41
Views: 3231

Re: What's the purpose of having a child's name on a deed?

If most or all of the assets pass outside the Will, it may be difficult to get the estate and inheritance taxes paid if a beneficiary won't cooperate. The problem arises if they pass outside a will or a trust. The problem of assets going directly to beneficiaries and leaving not enough in the estat...
by afan
Tue Oct 03, 2017 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard: "Your Investing Life™: Helping parents prepare for the future."
Replies: 6
Views: 1022

Re: Vanguard: "Your Investing Life™: Helping parents prepare for the future."

I was happy to see the suggestion that Vanguard has PAS reps who would help with things like this. But then I read Bonus tip If your parents are open to the idea, consider having yourself named as a joint owner on their bank accounts. That way, if the need arises, you can easily pay bills on their b...
by afan
Tue Oct 03, 2017 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Can someone clear up my confusion with unfreezing credit to check my credit score?
Replies: 4
Views: 604

Re: Can someone clear up my confusion with unfreezing credit to check my credit score?

Checking your score and checking your report are different. When you get your report, you do not necessarily get a score. When you get a score you do not also get a report. My credit card that provides credit scores is still doing that, in spite of my credit freeze. Since you cannot freeze access of...
by afan
Mon Oct 02, 2017 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Past problem with Universal Life assumptions
Replies: 7
Views: 401

Re: Past problem with Universal Life assumptions

I don't know the specific article but there have been many like that. If people paid the premium required to keep the policy alive at guaranteed cost and returns they should be fine. The problems arise when people add the ability to take loans to the ability to pay lower premiums, which are the sell...
by afan
Mon Oct 02, 2017 9:51 am
Forum: Personal Finance (Not Investing)
Topic: What's the purpose of having a child's name on a deed?
Replies: 41
Views: 3231

Re: What's the purpose of having a child's name on a deed?

Gill can you explain? To my simple non lawyer brain, I would think the cost basis implications would depend on whether the property was given by making the child a joint tenant or a tenant in common. If the latter, as I understood it, the TIC simply owned their share, with the basis they got when it...
by afan
Mon Oct 02, 2017 9:28 am
Forum: Personal Finance (Not Investing)
Topic: For buying house: how do you know which schools are "good"?
Replies: 56
Views: 3709

Re: For buying house: how do you know which schools are "good"?

Unless you are an elementary school teacher yourself I am not sure you would know enough to form an informed opinion. You could get an overall impression of cleanliness and order but not much beyond that. If you want more info you could go to school board meetings or, if they let you, parents' night...
by afan
Sun Oct 01, 2017 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Think I Should Dump this Whole Life Policy
Replies: 13
Views: 1137

Re: Think I Should Dump this Whole Life Policy

The simplest way to compare the performance of the policy to a taxable side account: Start with the current surrender value, this may still be less than your cash value depending on how long it takes for surrender charges to go away. Start a spreadsheet with that surrender value as the starting valu...
by afan
Sun Oct 01, 2017 11:09 am
Forum: Investing - Theory, News & General
Topic: VG using outsourcing to call me & I'm not happy
Replies: 76
Views: 6981

Re: VG using outsourcing to call me & I'm not happy

This sounds like classic phishing. They don't need to know that you have a Vanguard account. They know that many people have such accounts, so they call and claim they are from Vanguard. If the person who answers does not have a Vanguard account then maybe the call goes nowhere. If they do have such...
by afan
Sun Oct 01, 2017 7:18 am
Forum: Personal Finance (Not Investing)
Topic: For buying house: how do you know which schools are "good"?
Replies: 56
Views: 3709

Re: For buying house: how do you know which schools are "good"?

If you have wide choices in where to live, you might be able to find highly educated parents without extremely high incomes. This is typical of towns with a big population of university professors. They are hardly poor, but not wealthy either. They prize education but the region might not support th...
by afan
Sun Oct 01, 2017 7:08 am
Forum: Personal Finance (Not Investing)
Topic: For buying house: how do you know which schools are "good"?
Replies: 56
Views: 3709

Re: For buying house: how do you know which schools are "good"?

As Archimedes indicated, if you know the incomes, professions and advanced degrees of the parents then you will know the test scores of the schools. Schools in high income highly educated regions will have no problems of poverty. They will be well maintained, clean, safe and equipped with all the la...
by afan
Sun Oct 01, 2017 6:44 am
Forum: Personal Finance (Not Investing)
Topic: Moving from one paid-for house to another
Replies: 19
Views: 1569

Re: Moving from one paid-for house to another

Contingency provisions are very common. If the people from whom you are buying the new house have a real estate agent that person should tell them how much they should care. From what you describe there should be little risk of not selling your place. Taking a bridge loan eliminates this problem but...
by afan
Fri Sep 29, 2017 4:46 pm
Forum: Investing - Theory, News & General
Topic: IPOs and Total Market
Replies: 4
Views: 286

Re: IPOs and Total Market

IPOs are not surprises. The date of the issue is known well ahead of time. Funds can use futures and options to get full exposure to the index even if they do not have every stock in them. They can also plan how much cash they will need to buy the amount of the stock the index requires.
by afan
Fri Sep 29, 2017 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Trust just set up: What and How to transfer?
Replies: 8
Views: 500

Re: Trust just set up: What and How to transfer?

Concerning the business- definitely ask your lawyer. I would wonder whether you would want to transfer it into the trust even assuming you could. You might be better off with the business being an LLC with perhaps the trust owning the LLC.
by afan
Fri Sep 29, 2017 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Trust or ?
Replies: 13
Views: 1203

Re: Trust or ?

The annuity idea would protect your spouse from selling out the assets and giving them away. If she would be susceptible to pressure from the adult kids, then she might give away the income stream from the annuities. You have to decide how worried you are about this. For a price, you can set up a tr...
by afan
Fri Sep 29, 2017 1:40 pm
Forum: Personal Consumer Issues
Topic: The Rolex and The Boglehead
Replies: 274
Views: 10965

Re: The Rolex and The Boglehead

This thread motivated me to go back and view again one of my favorite watch videos. Patek has this video about how they service and repair their watches. They record and keep forever their records of when the watches have been back for repair, what was done, who owned them... On the video they show ...
by afan
Fri Sep 29, 2017 1:11 pm
Forum: Personal Consumer Issues
Topic: The Rolex and The Boglehead
Replies: 274
Views: 10965

Re: The Rolex and The Boglehead

DaftInvestor wrote:
Thu Sep 28, 2017 4:27 pm
Should my kindergartner's drawing be priced the same way as a Picasso? They are both art after all and "serve the same function".
We display a number of peices of art our kids created as children.
Never bought anything from famous artists.
by afan
Fri Sep 29, 2017 12:58 pm
Forum: Personal Consumer Issues
Topic: The Rolex and The Boglehead
Replies: 274
Views: 10965

Re: The Rolex and The Boglehead

I think the better analogy is something like a $5,000 suit vs. $1,000 suit vs. a $300 suit. Or a $100 necktie vs. a $2 goodwill tie. I used to buy my ties from Goodwill. I may have paid as much as $2 each. Then I discovered one can get ties in bulk on ebay for less than $1/tie. They look the same a...
by afan
Fri Sep 29, 2017 12:42 pm
Forum: Personal Consumer Issues
Topic: The Rolex and The Boglehead
Replies: 274
Views: 10965

Re: The Rolex and The Boglehead

Are there really people out there who get no personal joy from any of their cars, dwellings, possessions, gifts, wine? A car is transportation. Mine works. When it can no longer be reasonably repaired, I will replace it. Unless I don't need a car anymore. Then I will just get rid of it. Don't drink...
by afan
Fri Sep 29, 2017 12:20 pm
Forum: Personal Consumer Issues
Topic: The Rolex and The Boglehead
Replies: 274
Views: 10965

Re: The Rolex and The Boglehead

mak1277 wrote:
Thu Sep 28, 2017 8:00 am
I like mechanical watches when I'm in the woods because I never have to worry about charging it.
Solar power. Never need to charge it. Just wear it.
by afan
Fri Sep 29, 2017 12:17 pm
Forum: Personal Consumer Issues
Topic: The Rolex and The Boglehead
Replies: 274
Views: 10965

Re: The Rolex and The Boglehead

The difference between the Rolex and the Casio is this: I will leave my Rolex to my son. He will wear it on his wrist. He can leave it to his son. He will wear it on his wrist. If that means nothing to you, that's fine. It means something to me. Hmmm. My kids don't wear watches. I like to think the...
by afan
Fri Sep 29, 2017 9:36 am
Forum: Personal Finance (Not Investing)
Topic: I am in the investment advice industry and I'm not sure if I provide any value
Replies: 67
Views: 6379

Re: I am in the investment advice industry and I'm not sure if I provide any value

I am skeptical, to say the least, of claims that advisors help clients avoid bad investment moves in overreaction to the news. It is easy to say that, but there is precious little evidence it is true. I am aware of one large study from Europe that managed to compare portfolios run by advisors to tho...
by afan
Fri Sep 29, 2017 9:31 am
Forum: Personal Finance (Not Investing)
Topic: I am in the investment advice industry and I'm not sure if I provide any value
Replies: 67
Views: 6379

Re: I am in the investment advice industry and I'm not sure if I provide any value

[quote=dbr post_id=3552467 time=1506692800 user_id=825] An important distinction is that planning can be performed on a one time task basis for a reasonable cost to formulate a financial plan and perhaps after some time to review and update. I am pretty sure you can't make a business of doing this. ...
by afan
Thu Sep 28, 2017 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: I am in the investment advice industry and I'm not sure if I provide any value
Replies: 67
Views: 6379

Re: I am in the investment advice industry and I'm not sure if I provide any value

There is a fundamental problem with the assets under management fee model for financial advice. As the OP realizes, managing the assets is easy and every year Vanguard pushes the cost farther below 10 basis points for a total portfolio. The rest of the fee has to be earned not on investment manageme...
by afan
Wed Sep 27, 2017 5:31 pm
Forum: Personal Consumer Issues
Topic: The Rolex and The Boglehead
Replies: 274
Views: 10965

Re: The Rolex and The Boglehead

Well, as with people who speculate on stocks, for every person who bought a $5,000 Rolex for only $4,500, there is someone who sold a Rolex for less than it was worth. That there are some winning transactions means there are the same amounts lost by the counterparty. Some people may know watches and...
by afan
Wed Sep 27, 2017 2:59 pm
Forum: Personal Consumer Issues
Topic: The Rolex and The Boglehead
Replies: 274
Views: 10965

Re: The Rolex and The Boglehead

I am one of those people who will never, ever, EVER pay $200 for a watch, let alone $10,000. A watch is a tool for telling time. Cheap electronic watches will keep time more accurately than the best mechanical watches. Just a fact of life. For those who want even more accuracy, you can get an electr...
by afan
Mon Sep 25, 2017 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Term 80 with Northwestern Mutual thinking of making the switch to Term 30
Replies: 6
Views: 589

Re: Term 80 with Northwestern Mutual thinking of making the switch to Term 30

At least part of your question depends on how NWML prices the various options you are considering. Would you get a better overall rate for one large policy rather than two smaller ones? Compare the path of premiums over time between term 80 and term 30. Only NWML can tell you that. A few general obs...
by afan
Mon Sep 25, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: John Rekenthaler: "The Latest Salvo Against Indexing"
Replies: 3
Views: 1305

Re: John Rekenthaler: "The Latest Salvo Against Indexing"

To accept the premise, one has to believe more than just that active managers would TRY to get companies to make changes that improve corporate performance. One has to believe that active managers would know what those changes would be. This requires that they know better than do the people running ...
by afan
Mon Sep 25, 2017 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Charitable bequest from non Roth retirement plans
Replies: 0
Views: 96

Charitable bequest from non Roth retirement plans

Let's say you want to make charitable bequests as part of your estate plan. You have assets in non Roth retirement plans and you want to use SOME of this money for the bequests to charities. You want the rest of the money in those plans to go to your heirs. How do you go about doing this? Some vendo...
by afan
Sun Sep 24, 2017 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Initial co-trustee instead of successor trustee
Replies: 25
Views: 1238

Re: Initial co-trustee instead of successor trustee

Well, the pour over will necessitate an executor to to what it says. Since it can be difficult to get absolutely everything into a trust, one needs a will. And having a will means having an executor. But this could easily be the same person as the trustee and need not add to cost or complexity. If i...
by afan
Sat Sep 23, 2017 1:54 pm
Forum: Personal Consumer Issues
Topic: Anyone used Amazon to buy household goods
Replies: 26
Views: 1900

Re: Anyone used Amazon to buy household goods

I buy whatever I can online. It avoids a trip to the store and once I place an order I am done. I find the prices are all over the map, sometimes the same as grocery store, sometimes considerably less. If it would cost more, I don't buy. Heavy things, fluids, tend to be costly because of the deliver...
by afan
Sat Sep 23, 2017 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3156

Re: Really need Bypass and Qtip for ~$20MM estate?

Spencer wrote:
Fri Sep 22, 2017 3:11 pm
It is also a very simple (and far too often overlooked) way to reduce the effective estate tax rate from 40% to 28% because gift taxes are paid by the giftor, and hence removed from the estate.
Can you elaborate? Isn't the gift tax rate the same as the estate tax rate for exactly this reason?
by afan
Fri Sep 22, 2017 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Policy to "shelter" money from Financial Aid calculations
Replies: 23
Views: 1269

Re: Life Insurance Policy to "shelter" money from Financial Aid calculations

If I have followed this correctly, there are life insurance salespeople, pretending to help people with financial aid planning, who encourage them to take out mortgages on their homes, reducing their equity and use the proceeds to buy whole life insurance. The whole point of this maneuver is present...
by afan
Fri Sep 22, 2017 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Please help with evaluation of whole life and term from Northwest mutual.
Replies: 18
Views: 1700

Re: Please help with evaluation of whole life and term from Northwest mutual.

Re:1035 exchange- What stevew7 said.

You will not have to pay tax when you surrender the whole life policy since your total of premiums paid is greater than the surrender value.
by afan
Fri Sep 22, 2017 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3156

Re: Really need Bypass and Qtip for ~$20MM estate?

If you have the opportunity, you might consider establishing the trusts or decanting into trusts located in a state that will not tax the income. Then you avoid the state-level taxation. You would still be left with federal taxes, but that would be way better than paying CA rates. Of course, to the ...
by afan
Thu Sep 21, 2017 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3156

Re: Really need Bypass and Qtip for ~$20MM estate?

Re: taxes Again, you are assuming 1. The entire amount is sold now 2. The entire sales value reflects capital gains (i.e. cost basis is zero) Under those circumstances then the comparison of capital gains to estate tax rates still favor the capital gains. Far more likely, at least SOME of the value ...
by afan
Thu Sep 21, 2017 8:55 am
Forum: Investing - Theory, News & General
Topic: Net Worth divided between taxable and tax-advantaged accounts
Replies: 4
Views: 977

Re: Net Worth divided between taxable and tax-advantaged accounts

When I have the energy I discount the value of the non Roth retirement funds by 40% as a worst case estimate. But that assumes withdrawing all of the money and paying taxes right now, which is not going to happen. Withdrawing no more than required distributions throughout our retirement and given th...
by afan
Thu Sep 21, 2017 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard PAS Seems Inflexable
Replies: 24
Views: 1877

Re: Vanguard PAS Seems Inflexable

I did not miss it. But I think you may be overestimating the complexity of the issues you mentioned. You know your wife and I don't, but the questions you raised could be easily handled by many people who have no interest in investing. Required distributions could be calculated by a tax preparer, yo...
by afan
Thu Sep 21, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3156

Re: Really need Bypass and Qtip for ~$20MM estate?

Hopefully bsteiner will comment on the estate planning. Just note that the capital gains tax rate is a lot lower than the estate tax rate and it is only paid when an investment is sold. At this asset level the beneficiaries down the line might live on the income, which would be taxable anyway, and n...