Search found 8152 matches

by afan
Wed Mar 27, 2024 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Does ERISA *really* provide 401k asset protection?
Replies: 75
Views: 7019

Re: Does ERISA *really* provide 401k asset protection?

tetractys wrote: Sun Mar 24, 2024 7:06 pm
I’ve heard the Bahamas are a pretty good place to be arrested.
SBF did not seem to think so. He waived extradition and returned to the US to face life in prison rather than stay in a Bahamian jail.
by afan
Wed Mar 27, 2024 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Does ERISA *really* provide 401k asset protection?
Replies: 75
Views: 7019

Re: Does ERISA *really* provide 401k asset protection?

My understanding: while the money is in an ERISA plan, it has strong federal protection. When the money is rolled into a rollover IRA, the protection follows it, at least for bankruptcy situations. I was told by my lawyer that in my state the ERISA protection was simply maintained in the rollover IRA.

Question for the experts: as a matter of federal law, do rollover IRAs have as much protection in non-bankruptcy situations as do ERISA plans? Or is this a matter of state law?

I am sure bsteiner and Lee know the answer. It would be a critical piece if information for estate planning. Still hoping they will speak up.
by afan
Wed Mar 27, 2024 6:22 pm
Forum: Investing - Theory, News & General
Topic: Does backtesting capture all the costs differences between funds ?
Replies: 8
Views: 404

Re: Does backtesting capture all the costs differences between funds ?

You would need to check when the back end load comes off.

In any case, you will not be able to do a meaningful comparison with an index fund if this American fund is actively managed.

Does the fund have different share classes? Some funds give you, or your financial thief, a choice of a high front load with a less terrible expense ratio, or avoid the front load and pay the high expenses. If this is one of those funds, then you could compare apples to apples- same investments with a high or less high expense ratio.

In any case, they would be far better off with total stock or S&P500 index funds at expense ratios of 0-4 basis points.
by afan
Wed Mar 27, 2024 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 41
Views: 1999

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

You should look for a true financial adviser, not an insurance salesperson. It is easy to rule out the salespeople. Just ask them whether they sell anything- insurance, annuities, securities, ANYTHING. The only acceptable answer is "No, all we sell is advice." This is called "advice-only" and is what you want. The Finance Buff used to have a service that would refer people to advice-only professionals. I have not checked in a long time, but you can see whether it is still offered. There are also threads on here about finding advisors. Even an advisor who charges by assets under management would be far better than the insurance salespeople. Their advice might be OK, just too expensive. Since you do not want asset manageme...
by afan
Tue Mar 26, 2024 9:17 am
Forum: Personal Finance (Not Investing)
Topic: What should a taxpayer expect a CPA to do?
Replies: 27
Views: 2968

Re: What should a taxpayer expect a CPA to do?

We use an enrolled agent, rather than a CPA. An EA is a full time tax preparer. CPAs do a wide variety of things and may not spend much of their time or effort on individual tax returns. Plus, our EA is cheaper.

They do a great job. Every year we send them our tax data. We include the forms showing state sources of dividends from mini funds and federal and treasury sources for taxable bond funds. We have all that information anyway, so why pay them to look it up?
by afan
Sun Mar 24, 2024 7:33 pm
Forum: Personal Consumer Issues
Topic: To buy or not to buy a big SUV
Replies: 42
Views: 3484

Re: To buy or not to buy a big SUV

Assuming you have no need for it at all during the rest of the year, it would be a matter of cost to rent for up to 28 days, vs buying. The big SUV will be expensive to buy, insure and maintain. The less you would use it for the rest of the year, the less reason to accept the ongoing expense.
Look into what a rental would cost all in, what buying a new one would cost, including full purchase price, fees, taxes, etc. Add in maintenance and gas for your routine use. If renting will be comparable, then perhaps there might be a case for buying.
Would you have a place to park it at home? At work?
by afan
Sun Mar 24, 2024 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding State Tax on Treasuries held in ETFs and Mutuals
Replies: 11
Views: 1459

Re: Avoiding State Tax on Treasuries held in ETFs and Mutuals

You can google it along with the fund name. The fund companies publish these data for their funds. Same for municipal bond funds.
by afan
Sun Mar 24, 2024 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Does ERISA *really* provide 401k asset protection?
Replies: 75
Views: 7019

Re: Does ERISA *really* provide 401k asset protection?

This topic comes up frequently. I wish the experts would chime in and put it to rest.
Bsteiner?
by afan
Sun Mar 24, 2024 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Does ERISA *really* provide 401k asset protection?
Replies: 75
Views: 7019

Re: Does ERISA *really* provide 401k asset protection?

What does arra king Simpson's earned income have to do with asset protection for ERISA plans and IRAs created as rollovers from such plans?
by afan
Fri Mar 22, 2024 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Setting Up Taxable Brokerage Accounts for Kids' Retirement Without Losing Control
Replies: 16
Views: 1406

Re: Setting Up Taxable Brokerage Accounts for Kids' Retirement Without Losing Control

The OP could create irrevocable trusts, one for each child. OP would make gifts to the trusts. OP would be trustee while alive and capable of serving. Once OP dies or resigns, the successor would be bound by the terms of the trust to use the money for the kids' retirement. That would do job but it is a terrible idea. Others have noted the tax problems. It might require a corporate successor trustee to be sure that they will continue to spend the money only the way the OP desires. This would be expensive and cut into the amount available to the kids. It would create a pool of money that is available only for one purpose while, as life evolves, it would prohibit using those assets for earlier needs. It is easy to imagine circumstances under w...
by afan
Fri Mar 22, 2024 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 203
Views: 9231

Re: Dedicated Financial Computer Master Thread

I assume this approach is intended to provide more security. Perhaps by avoiding general internet browsing, one seeks to avoid malware. Not clear how this would make one more secure as opposed to general precautions, up to date antivirus software, not clicking on inappropriate links...
Or is there some other reason to limit financial access to one computer?
by afan
Fri Mar 22, 2024 5:48 am
Forum: Personal Investments
Topic: Highly Concentrated Position In Zero Cost Basis Holding
Replies: 23
Views: 1438

Re: Highly Concentrated Position In Zero Cost Basis Holding

Selling all in the IRA is the right move. Whether she should sell any in the taxable account depend on her overall financial circumstances. What is her current tax bracket? How much would she pay in capital gains tax if she sold, say, 10% of it in the taxable account? She does not need to resort to options. What is her total income without selling the stock in the taxable account? Where to invest the IRA depends on how she is invested otherwise. Does her pension alone cover all her needs? Or is she also taking income from her portfolio? Is the rest of her portfolio in stocks? If she is 65% in a single stock, 35% in a TIPS ladder and never draws on her investment income, then moving to 65% VTI could be fine. If she is 100% stocks then she sh...
by afan
Thu Mar 21, 2024 7:18 pm
Forum: Personal Investments
Topic: Direct Indexing - Morgan Stanley
Replies: 25
Views: 1953

Re: Direct Indexing - Morgan Stanley

You can take a distribution of stocks from the fund. Typically, a diversified set of over a dozen companies. This distribution is not taxable. If you hold those stocks without selling them, then your heirs get the stepped-up basis and the gain is never taxed. If you want to sell, you can pick which shares to sell and how many of each stock. You can sell gradually to avoid increasing your tax bracket. Even if you sell all at once immediately at 7 years, you have 7 years of a diversified portfolio, rather than accepting the risk of holding it all in one stock. Downsides are the fees and manager risk in these actively-managed funds. You would need to model the costs vs tax loss from just selling and the risk of the fund vs the risk of the sing...
by afan
Thu Mar 21, 2024 4:49 pm
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 210
Views: 23809

Re: Anybody heard stories of well "prepared" retirees running out of money?

Unfortunately for the people involved, they may not have a choice about holding a large position in their company stock. If they are high enough in the food chain, much of their compensation may come in the form of stock or options. Companies expect their executives to have skin in the game. If one starts selling what the board considers to be too much stock, then that could ruin prospects at the company. Those people need to adjust the rest of their portfolios to compensate for the undiversified element. One way to get a handle on how much to have available for expenses in old age is to plan for them. When you are healthy and approaching retirement investigate the cost of moving into a good continuing care retirement community. Find severa...
by afan
Thu Mar 21, 2024 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Calling All Academics - What's Next
Replies: 35
Views: 3858

Re: Calling All Academics - What's Next

Most people in academics find that tenure is extremely valuable. Absent a catastrophe at your university, you have a job for as long as you want. No private company is going to give you anything like that. The promotion should come with a pay increase. You may already know how much or you will find out soon. In any case, keep your job until you promotion comes through. Actually being a tenured professor is quite a feather in your cap. Leaving before it is final leaves that off your CV. There is no convincing way to say "I was almost tenured, but I quit before it came through." How much you make will depend heavily on your field. Some finance and other business professors, for example, have very high salaries. Engineers and scienti...
by afan
Thu Mar 21, 2024 4:24 pm
Forum: Personal Investments
Topic: Direct Indexing - Morgan Stanley
Replies: 25
Views: 1953

Re: Direct Indexing - Morgan Stanley

I don't know what the "exchange fund" is, but it does not seem to be the same as an ETF (exchange traded fund). ETFs do not tie your money up for 7 years. An "exchange fund" is a fund that will accept the OP's company stock and provide them with a diversified portfolio, without the OP having to sell the company stock. That way, OP avoids realizing a capital gain. The only thing it has in common with an ETF is that the word "exchange" appears in both. In an ETF, "exchange" refers to the fact that the fund trades on a stock market, rather than being bought directly from the sponsor. For an "exchange fund", "exchange" refers to the action of exchanging a single stock for a position i...
by afan
Thu Mar 21, 2024 4:09 pm
Forum: Personal Investments
Topic: Direct Indexing - Morgan Stanley
Replies: 25
Views: 1953

Re: Direct Indexing - Morgan Stanley

At this point your best move may be to contact other brokers to see whether any of them have an exchange fund that accepts your stock. I assume the stock you hold is not restricted? Your company might know which exchange funds work with your stock, which brokers have them, or both. This is a way to reduce your investment in your company stock without selling now. The downsides are the long lockup and high fees. It is possible that there are some that operate at lower fees. Keep looking. Direct indexing is a different approach. It would not let you exchange your stock for a diversified portfolio without tax complications. All it would do is let you use some tax loss lots to offset gains when you sell your stock. I do not know whether the sta...
by afan
Thu Mar 21, 2024 12:32 pm
Forum: Personal Investments
Topic: Equiy Indexed Annuity using retirement money
Replies: 28
Views: 1899

Re: Equiy Indexed Annuity using retirement money

buddingdr,

Can you tell us how much you are paying this salesperson and how quickly you can get out?

Even if you are stuck paying for some minimum time, I would not do ANYTHING this person suggests. Just get your money out and post on here for suggestions of how to invest. Based on this recommendation, I suspect none of us would want you even listening to any other ideas they may have once you tell them no thanks for the EIA.
by afan
Thu Mar 21, 2024 10:26 am
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 210
Views: 23809

Re: Anybody heard stories of well "prepared" retirees running out of money?

fortunefavored wrote: Thu Mar 21, 2024 8:43 am
afan wrote: Thu Mar 21, 2024 8:30 am Right. In the recent strong markets some people have had problems because of increased expenses. That is the "X" we are talking about.
Please provide examples of "some people" who had problems. That was the point of this thread.
There have been numerous in this thread. Increased medical costs is a major theme. Other expenses, not covered by medical insurance but necessitated by immobility or other illness. Simply underestimating living expenses for others. Read through the thread
by afan
Thu Mar 21, 2024 8:30 am
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 210
Views: 23809

Re: Anybody heard stories of well "prepared" retirees running out of money?

Right. In the recent strong markets some people have had problems because of increased expenses. That is the "X" we are talking about.

One can be right about the withdrawal rate that is sustainable for a portfolio but wrong about the amount of money needed for support as life evolves. If there is an insufficient margin in X, then the ability of the portfolio to provide an inadequate cash flow still leads to failure.
by afan
Thu Mar 21, 2024 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Largest banks with worst rates....?
Replies: 33
Views: 1803

Re: Largest banks with worst rates....?

The value of safe deposit boxes : The bank is unlikely to burn down at the same time your house burns down. There are controls limiting access and it probably harder to burglarize the SDB than your home. Liability for box contents: If you kept the items at home and they were stolen, you would file a claim with homeowners insurance. Same for things in your SDB. My insurance company is clear that it considers a SDB to be safer than keeping valuables at home. That is their general advice. We do not have any valuables, jewelry, collectibles, etc, worth insuring. Is a SDB perfectly safe? No. Is using a SBB safer than keeping things at home? Yes, unless you build in a professional quality safe at home. Even then, the SDB diversifies location risk.
by afan
Thu Mar 21, 2024 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Tracking gross or net portfolio value
Replies: 16
Views: 916

Re: Tracking gross or net portfolio value

When I think of the size of my portfolio, I actually do make a mental calculation in which I subtract roughly half the value of my stock holdings, on the assumption that the current market value could well be much higher than the value at the moment when I need it. I do the same thing. I discount by the loss required to bring CAPE10 back to its long term mean. Right now, this is 50%. I agree that is possible that changes in the economy and accounting standards may mean that this measure should be somewhat higher than in the past. I do not have the data or accounting knowledge to have an opinion on how much to adjust for that. So I ignore it and simply assume CAPE10 values mean the same thing now as they have in the past. For spending purpo...
by afan
Wed Mar 20, 2024 9:28 pm
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 210
Views: 23809

Re: Anybody heard stories of well "prepared" retirees running out of money?

The problem with the "multiple of X" approach to planning is that is deemphasizes the importance of being right about the value of X. This thread list examples of X becoming far larger than anticipated. The fact that a 4% spending plan would have worked had expenses conformed to expectation is meaningless. People spend too much time worried about the multiplier and not enough on the size of X. Plans should include a margin of error to account for expenses being higher than expected. People who plan on the maximum annual withdrawals, without a margin, are running a higher risk of failure. For many, having a multiplier higher than 25 is a way of allowing for higher costs. If your multiplier is 50, then you can tolerate expenses that...
by afan
Mon Mar 18, 2024 8:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard invites clients to lend securities
Replies: 25
Views: 2471

Re: Vanguard invites clients to lend securities

Whether one is better or worse off would depend on how much lending revenue they received. If you had stock on loan all the time, the companies paid small dividends and you are in a low tax bracket, then this could be profitable. If you only had a stock out on loan for a short time, during which the company paid a large dividend and you are in a high tax bracket, then this could be a losing proposition. When you join these programs you do not know which stocks will be loaned, when or for how long. About the only thing you can know is your tax bracket. I have not delved into this in any detail but I gather that small stocks are much more likely to be loaned. If you have a large value of small stocks then perhaps you can anticipate generating...
by afan
Mon Mar 18, 2024 6:59 pm
Forum: Investing - Theory, News & General
Topic: Vanguard invites clients to lend securities
Replies: 25
Views: 2471

Re: Vanguard invites clients to lend securities

I did not see any mention of a gross-up for the loss of qualified dividend treatment. Fidelity provides a credit to address this. Did I miss this in the Vanguard email or elsewhere? Without it, some vanguard users are going to enter into this arrangement for their taxable accounts and end up worse off. If Vanguard is following the Fidelity model, they should make it clear. If they’re not, then it’s insufficient to simply warn clients that the tax consequences could be different. Pretty disappointing communication either way you slice it. Read more carefully. To help offset the potential tax burden associated with the receipt of the cash-in-lieu payments in place of qualified dividends (as defined in the Jobs and Growth Tax Relief Reconcili...
by afan
Mon Mar 18, 2024 3:16 pm
Forum: Personal Consumer Issues
Topic: NYC This Year or Wait? Has it sufficiently recovered from Covid?
Replies: 54
Views: 4713

Re: NYC This Year or Wait? Has it sufficiently recovered from Covid?

Regarding COVID: wear a mask in crowds, same advice as everywhere. Because it is NYC, you are likely to be in crowds often. The parts of Manhattan that have large concentrations of office buildings are less crowded because the occupancy of those places is down. But those are not areas of any attraction to tourists anyway. Block after block of offices. Most of the day, those people were inside, working in their offices, not on the street. You might walk through these areas on your way somewhere else, it is a great walking city- but there are few destinations in the main office regions. The places you would want to see are open, busy, and have been for years now. They are not affected by the move to remote work. Again, museums, libraries, res...
by afan
Mon Mar 18, 2024 2:34 pm
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 210
Views: 23809

Re: Anybody heard stories of well "prepared" retirees running out of money?

The only ones I have heard about are medical related. The medical expenses get much higher than expected is typical. They develop a medical condition that they didn't expect. The other is they have a kid that ends up with a health condition that requires 24/7 care. I know someone in this case that had enough to retire but kept working because of the medical costs related to their kid/adult. They wanted more than enough for after they passed to help with the continued care of their kid. I'm a little confused by this. Doesn't the Affordable Care Act require that there be a cap on out of pocket medical expenses, beyond which the insurance company must pay 100% of all medical expenses? My recollection is that there is both an annual cap and a ...
by afan
Mon Mar 18, 2024 2:28 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 12546

Re: Can I retire with $1.75M at age 43?

ScubaHogg wrote: Mon Mar 18, 2024 2:22 pm
EnjoyIt wrote: Mon Mar 18, 2024 2:21 pm
WhiteMaxima wrote: Mon Mar 18, 2024 1:04 pm Health related cost will dry out 1.75M very easily.
How do you figure?

How do people with little money get healthcare in this country?
They get it fine. This is just fear mongering.
If they qualify for Medicaid, then they get what Medicaid covers. For anything that Medicaid does not cover, they are out of luck. Not everyone who has little money qualifies for Medicaid. If they have too much to qualify for Medicaid, then they might be able to buy an ACA plan. If they can afford it. Many people who are above Medicaid limits cannot afford ACA plans. They go without coverage and go without care. The safety net is very leaky.
by afan
Mon Mar 18, 2024 2:24 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 12546

Re: Can I retire with $1.75M at age 43?

Expenses can increase. Simeone with a large discretionary component to their spending could redirect that money to necessities if the need arose. Someone who is already budgeting a lean spending plan does not have that luxury. People are missing the point about health insurance. Insurance does not cover 100% of health care costs. A conventional plan might cover 100% OF COVERED EXPENSES, after satisfying an out of pocket maximum. But many health expenses are not covered by insurance at all. Home health assistance might be covered on a limited basis for a limited time. Beyond that, health insurance would cover nothing. Need modifications to your home in order to live there due to your illness? Health insurance will not pay for that. Need to t...
by afan
Mon Mar 18, 2024 1:19 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 12546

Re: Can I retire with $1.75M at age 43?

Health related cost will dry out 1.75M very easily. Besides some insanely unlucky sequence of bad luck, tell me how? Virtually any health insurance has out of pocket maxes that even if tapped every year on top of their planned spend the OP won’t run out of money And frankly any health related thing that would cause such a sequence will involve losing a job as well People with chronic illnesses have health care costs that are not covered by health insurance. Health insurance does not cover all costs. The out of pocket maximum only applies to covered benefits. The uncovered amounts can be quite expensive. They are responsible for the large number of people who go bankrupt due to medical costs. Not all of them were individuals who lacked heal...
by afan
Mon Mar 18, 2024 1:12 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 12546

Re: Can I retire with $1.75M at age 43?

My brain is stimulated when I have interesting things to do and learn. There are many jobs that provide this. It is part of the reason people who have positions like that continue to work long after they can afford to retire. You are attacking a local problem, you dislike your current job, with a global response-abandon all paid employment. You need a new job. Have you looked? If you have convinced yourself that you would feel the same way about any other job, I respectfully suggest you get some counseling. There are millions of people employed in positions that do not have the problems you describe. If you cannot see this, then you need to find some perspective. Right now you feel trapped in the job you have. Quitting is an approach to th...
by afan
Mon Mar 18, 2024 9:07 am
Forum: Investing - Theory, News & General
Topic: Is active mutual fund’s capital gain always a bad thing?
Replies: 28
Views: 2325

Re: Is active mutual fund’s capital gain always a bad thing?

The argument seems to be that one can look back and find a subset of active managers who distributed large capital gains in the year before a downturn. At least on one or two occasions. My initial response is that this is meaningless. Absent a systematic review of the behavior of active managers as a whole, the approach of focussing only on the handful of funds that have done this once or twice generates a list of funds for which this is entirely chance. If one looked at the behavior of managers for the period of, say, 1980-2000, identified managers who consistently distributed large CGs the year before down years for the S&P500, then followed them for 2000-2020, one could see whether the past behavior had any predictive value. Accept t...
by afan
Sun Mar 17, 2024 8:06 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 12546

Re: Can I retire with $1.75M at age 43?

Have you considered a different job? That is a much less expensive way to remove yourself from employment you hate. At your age, you will be taking a huge gamble on long term market returns, inflation and your expenses. If any of these go against you, then you could be in terrible shape. You say you do not expect to be alive and healthy at 80. If you die before 80, then your money does not need to carry to that age. But if you are alive and sick, then running out of money would be miserable. Even absent illness, as you age you may need to pay people to do things that you now do yourself. You may find your expenses increasing, with limited room to cut back. Working extra years both reduces the amount of time you need to rely on savings and i...
by afan
Sun Mar 17, 2024 7:22 pm
Forum: Personal Consumer Issues
Topic: NYC This Year or Wait? Has it sufficiently recovered from Covid?
Replies: 54
Views: 4713

Re: NYC This Year or Wait? Has it sufficiently recovered from Covid?

How long to spend will depend on what you want to do. If you enjoy music, theater, restaurants, museums, city parks, lectures, etc, the volume of such things is overwhelming. You could not do it all if you lived there. 14 days of this on a tourist schedule could be exhausting.

Most people do not stay that long. 4-7 days would give you plenty to do and let you figure out what you like. Then make a return trip with a better idea of what you want.

It is also loud, crowded, expensive and not the safest place in the world.
by afan
Sun Mar 17, 2024 7:16 pm
Forum: Personal Consumer Issues
Topic: Extra Low Mileage Drivers: How much do you spend on your car?
Replies: 54
Views: 5557

Re: Extra Low Mileage Drivers: How much do you spend on your car?

If one did not have a car it would be quite easy to rack up $112/month in ride share expenses.
by afan
Sun Mar 17, 2024 3:21 pm
Forum: Personal Consumer Issues
Topic: RIP edmunds.com....how can one evaluate the value of a used car now?
Replies: 25
Views: 4278

Re: RIP edmunds.com....how can one evaluate the value of a used car now?

I watched someone use edmunds for a used car estimate a couple of days ago. No need to enter any identifiable information. No need to provide an email address. Entering the VIN eas an option but not necessary. Took about 5 minutes. As others have noted, it offered prices for private sale, dealer price, trade in. I have no idea whether it was accurate but I did not see any problem with the process.

What is wrong with it?
by afan
Sun Mar 17, 2024 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: credit score dropped 100+ points after Chase started reporting First Republic mortgages
Replies: 15
Views: 1985

Re: credit score dropped 100+ points after Chase started reporting First Republic mortgages

Before you increase the limit on your credit card, ask whether they will do a hard pull. If so, this alone will reduce your credit score. It will bounce back but perhaps not in the time frame you need.
by afan
Sun Mar 17, 2024 11:33 am
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 210
Views: 23809

Re: Anybody heard stories of well "prepared" retirees running out of money?

Not as dramatic as some examples but I know someone who entered retirement thinking they were well prepared. Then they discovered that they had grossly underestimated their expenses. They attempted to go back to work but had moved in retirement, leaving behind all their professional connections. Could not find work. Did not want to move back and resume working part-time in their former location. Briefly investigated remote work with former colleagues but apparently the opportunities were not that attractive. I gather that in their field, the lion's share of the compensation goes to the person who brings in the business. Simply doing the work does not pay much. So they cut back on lifestyle to something that appears to be sustainable. The sa...
by afan
Sat Mar 16, 2024 7:12 pm
Forum: Personal Consumer Issues
Topic: Cloud based backup options for sensitive files
Replies: 93
Views: 7918

Re: Cloud based backup options for sensitive files

As an example, if the key is stored in an cloud location that's compromised, your data could be compromised. If your key is stored on an unprotected local USB drive, someone with access to it could access your data. And keeping the key "only locally" goes back to the risk of data loss if your "local" location is damaged by water/fire/wind/etc. In my case, if the cloud location were to be compromised, the attacker would obtain access to an encrypted file, which you do them no good and me no harm. The local backup drive is in as safe a location as necessary for my purposes. My backup for my spideroak key, like my other backups, also is encrypted. Perhaps my point was missed... And if your spouse/heir/executor needs access...
by afan
Thu Mar 14, 2024 5:29 pm
Forum: Personal Consumer Issues
Topic: Cloud based backup options for sensitive files
Replies: 93
Views: 7918

Re: Cloud based backup options for sensitive files

SnowBog wrote: Wed Mar 13, 2024 12:56 pm

As an example, if the key is stored in an cloud location that's compromised, your data could be compromised. If your key is stored on an unprotected local USB drive, someone with access to it could access your data. And keeping the key "only locally" goes back to the risk of data loss if your "local" location is damaged by water/fire/wind/etc.

In my case, if the cloud location were to be compromised, the attacker would obtain access to an encrypted file, which you do them no good and me no harm.

The local backup drive is in as safe a location as necessary for my purposes.

My backup for my spideroak key, like my other backups, also is encrypted.
by afan
Thu Mar 14, 2024 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7798

Re: Letter to heir - what would you include?

If I thought my heirs would need time off from work to settle my affairs, then that would mean that I have left things far too complicated. It is a major reason we have RLTs, although probate in our state is apparently easier than CA. I want to leave as small and tidy a pile of things to do as possible. Having to clean out a house for the only estate I settled, I had the heirs go through and take what they wanted. The rest went to estate sale, donation, or the dump. It was almost completely hands off for me. The lawyer had nothing to do with it. There are companies that will come in, decide what they think they can sell and dispose of the rest. The very last I would want heirs to do would be interrupt their careers or drop out of school to ...
by afan
Thu Mar 14, 2024 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: When is the right time to set up a trust?
Replies: 31
Views: 3329

Re: When is the right time to set up a trust?

... another reason for avoiding probate is privacy and speed of access to your funds. Your successor trustee can access your funds without any public scrutiny if held in a revocable or other trust at time of death, instead of a trust created in your will. Many people don't care about privacy and maybe a good attorney could get your heirs fast enough access in probate, but I do care about those things. I don't mind paying an attorney for probating my will, but I want to make sure the majority of my estate is not involved in that process. ... Probating the Will is binary. Either you probate the Will or you don't. The work to probate the Will is the same for a $1 million estate as for a $100 million estate. The work may be the same, but if $9...
by afan
Wed Mar 13, 2024 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: When is the right time to set up a trust?
Replies: 31
Views: 3329

Re: When is the right time to set up a trust?

playboy_number9 wrote: Wed Mar 13, 2024 10:22 am
With that amount of net worth, I'd be very cautious telling any estate attorney my net worth. They will be inclined to overcharge you. I know from experience. Dress down and don't look flashy.

When you start looking for one, don't tell them your net worth right away. Ask questions to test their judgement and character. Look for a fiduciary and someone who charges by the hour or a flat fee.
If the attorney does not know your net worth, how could they possibly provide good estate planning advice?
by afan
Wed Mar 13, 2024 9:52 am
Forum: Personal Consumer Issues
Topic: Cloud based backup options for sensitive files
Replies: 93
Views: 7918

Re: Cloud based backup options for sensitive files

Spideroak is cheap and reliable. Files are encrypted on your computer. All Spideroak ever has are the encrypted files. No bad actor at the company could see your unencrypted information. Backups are automatic.

You do need to keep your key. Lose it and you have nothing. I keep multiple backups of this sort of critical password information in various physical locations and in the cloud.

I also backup to a local hard drive using File History. I am a low risk target and I am comfortable with the security of my computer and the hard drive.
by afan
Wed Mar 13, 2024 9:36 am
Forum: Personal Consumer Issues
Topic: Concierge Medicine
Replies: 79
Views: 12302

Re: Concierge Medicine

Through a combination of luck and connections, I have a non-concierge PCP who provides concierge-level care. Fast response to emails, can see them quickly if needed. Outstanding clinician. I would follow them to a concierge practice if they were to join one but so far they are staying put. I have a friend who is one of the many primary care docs who has switched to concierge. They say this lets them practice the way they always wanted to- spend time with patients. Look at them holistically, rather than focus on episodic responses to individual problems. They say that they make about the same amount of money as before they went concierge but they feel much better about the care they are giving. Constantly juggling who can be seen and worryin...
by afan
Sun Mar 10, 2024 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Cash Do You Keep In Your Home?
Replies: 207
Views: 15472

Re: How Much Cash Do You Keep In Your Home?

For those who keep cash at home, why do you do this? Why not keep it in a bank and use a credit card when you want to buy something?
by afan
Sun Mar 10, 2024 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Variable Universal Life
Replies: 62
Views: 3160

Re: Variable Universal Life

Do you need life insurance at all?
Give us an idea of where you stand financially- income if still working Social Security, pensions, etc. What are your total investments taxable, tax deferred and Roth?
Then, what are your spending needs? Do you have a mortgage? What is your total annual spending?

Most people at your stage of life have no need for life insurance and good reasons not to keep it- costs as you have discovered.

Depending on your answers, you may not need life.imsurance at all. If that is the case, you may be best served by cancelling the policies and using the cash for spending. But first work through whether you need insurance.
by afan
Sun Mar 10, 2024 4:58 pm
Forum: Personal Investments
Topic: Fidelity advice
Replies: 67
Views: 8446

Re: Fidelity advice

Did they put the details of the deals in writing?
by afan
Sun Mar 10, 2024 3:01 pm
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 17339

Re: Retirees apparently tend to maintain assets - lessons for BH investors?

But once you put it into a DAF, you have given it away. That is more spending. If the goal is more saving, unless you manage to deduct enough from taxable income that the tax savings is greater than the amount donated, you have not accomplished it. I thought there were no more deals like that. I have not done a deep dive into CGAs but I thought that they were required to be structured so that some minimum portion of the gift went to the charity and that minimum value was enough to prevent this from being a net increase in networth for the donor. Plus, I have no need for an annuity. Creating one would force a series of taxable payments to me from assets I otherwise would not have liquidated. For heirs, I think there are some strategies that ...