Search found 8130 matches

by afan
Mon Mar 18, 2024 8:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard invites clients to lend securities
Replies: 21
Views: 1185

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: 21
Views: 1185

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 6:35 pm
Forum: Personal Consumer Issues
Topic: NYC This Year or Wait? Has it sufficiently recovered from Covid?
Replies: 54
Views: 3884

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. Haha, I thought that posting medical advice was prohibited on this forum. Wearing a mask to protect yourself from a virus is like putting a chainlink fence in your backyard to keep out mosquitos. If I was worried about a virus, I wouldn't be putting myself in a metal tube with 250 other people for 6 hours to transport myself to NYC. Not medical advice, all available from lay sources. But a few facts https://covid.cdc.gov/covid-data-tracker/#datatracker-home 13,391 COVID hospital admissions March 3-March 9, 2024. 2% of all deaths in US due to COVID over the same period. The site also includes county-level current COVID...
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: 3884

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: 88
Views: 10172

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: 11069

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: 11069

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: 11069

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: 11069

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: 10
Views: 958

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: 11069

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: 3884

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: 48
Views: 4187

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: 4048

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: 10
Views: 1383

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: 88
Views: 10172

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: 92
Views: 7386

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: 92
Views: 7386

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: 7230

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: 3136

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: 3136

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: 92
Views: 7386

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: 12089

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: 14906

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: 2980

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: 8018

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: 16926

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 ...
by afan
Sun Mar 10, 2024 2:14 pm
Forum: Personal Investments
Topic: Sharing why we went with Vanguard PAS
Replies: 69
Views: 6688

Re: Sharing why we went with Vanguard PAS

For those who have used PAS, under the old or new definition, did they help with non-investment financial planning?

Social Security claiming strategy? Mortgage refinancing? Bridge loans for those buying or building a new house? Determining insurance needs and shopping for policies? QCDs? Tax planning beyond investment management?
I had thought that all they do is investments but maybe I am wrong about that?
by afan
Sun Mar 10, 2024 1:56 pm
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 16926

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

There used to be tax shelters that let someone save more by spending. It was before my time but I gather one "invested" $X and reduced taxable income by, say, $2X. This would reduce taxes by enough to come out ahead. I thought they changed the tax laws such that these schemes are no longer legal.

Giving to charity, depending on how it is done, can reduce taxes.
But it does not lead to increased savings.

Unless there is some strategy to the charitable acts that increases savings. Again, if there are legal ways to do this, I am all ears.
by afan
Sun Mar 10, 2024 1:40 pm
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 16926

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

White Coat Investor wrote: Sun Mar 03, 2024 8:54 am

I could spend more, save more, and reduce taxes? I am all ears. What is it?
It's charity.
How does charity satisfy the goal of "save more?"
by afan
Sun Mar 10, 2024 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Chubb and Pure, and excess liability insurance in general for my situation?
Replies: 17
Views: 1611

Re: Advice on Chubb and Pure, and excess liability insurance in general for my situation?

The most reliable way to find out whether those companies would insure you is to contact an agent and ask.
AIG Private client also writes large umbrella policies. Rumor has it that their minimums are higher than Chubb or PURE.
by afan
Sun Mar 10, 2024 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 129
Views: 10647

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

I have figured out over the years that the things I enjoy are cheap or free. When traveling, I would much rather pick up food at a grocery and eat in my hotel room than go to the "best restaurant in the city." More than that, I would rather stay at home and eat in my own kitchen than travel somewhere. I travel some for work and that is how I handle eating. I rarely travel for pleasure. The notion of pleasure travel is oxymoron in my estimation. I do not care about fancy clothes, shoes, jewelry, cars, etc. I want not to have an expensive house. I want not to go on a boat, much less own one. It is difficult to come up with a plausible scenario under which I will again leave the country. I like to read, take walks, workout, and eat s...
by afan
Sat Mar 09, 2024 10:51 am
Forum: Personal Investments
Topic: 1035 Exchange of Life Insurance to Annuity
Replies: 12
Views: 967

Re: 1035 Exchange of Life Insurance to Annuity

Reducing the face amount of the policy might be particularly appealing if it is an older policy, written at a time when interest rates were high. Some may have very attractive guaranteed minimum rates.

Reducing the amount insured will cut the cost of insurance. You may want to work with your insurance company to get illustrations of the performance after such changes.

You cannot get the cost of insurance to zero, but it might be an inexpensive way to manage a fixed income allocation.
by afan
Sat Mar 09, 2024 10:42 am
Forum: Personal Finance (Not Investing)
Topic: When/Why would you need Trust over Will
Replies: 97
Views: 6411

Re: When/Why would you need Trust over Will

One advantage of a will over a trust, at least for younger people, is cost.

Lee has said that updating a will is cheaper than updating a trust. For those young enough that future changes are likely this might be a consideration.

I have not seen Lee explain why it is less expensive to update a will.
by afan
Sat Mar 09, 2024 10:39 am
Forum: Personal Finance (Not Investing)
Topic: When/Why would you need Trust over Will
Replies: 97
Views: 6411

Re: When/Why would you need Trust over Will

This was mentioned above, but no one followed up. If you hold real estate in another state, then relying on a will means ancillary administration in each state. Fees and hassle will add up. Holding the property in trust avoids this. In some states, there are still fees, but less than if it passed by will.
by afan
Sat Mar 09, 2024 10:13 am
Forum: Personal Investments
Topic: REIT fund for buy and hold index investor?
Replies: 55
Views: 5374

Re: REIT fund for buy and hold index investor?

swilgu1 wrote: Fri Mar 01, 2024 4:04 pm Vanguard's real estate funds are not REIT funds, by the way. They hold about 18% non-REIT companies. See USRT or SCHH. These ETFs only hold REITs. They are also lower cost than Vanguard's real estate funds.
VNQ has a lower expense ratio than these two funds. Small difference.
by afan
Fri Mar 08, 2024 5:02 pm
Forum: Personal Investments
Topic: Fidelity advice
Replies: 67
Views: 8018

Re: Fidelity advice

Since it was a zoom meeting, OP should be able to confirm that the F people on video match the photos on the Fidelity site. Unless they managed to hack Fidelity and put up their pictures. Perhaps grab a screen shot, in case the photos posted change. But posting a photo of themselves and participating in Zoom conferences would be strange behavior for criminals. I expect most would want as little identifiable information as possible to be seen and copied by you. More importantly, send them an email and ask for the details of the deals in writing. If they refuse to provide them, contact Fidelity and complain about deceptive practices- assuming they really are who they claim to be. If someone makes a promise on the phone but will not send offic...
by afan
Thu Mar 07, 2024 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: When/Why would you need Trust over Will
Replies: 97
Views: 6411

Re: When/Why would you need Trust over Will

It seems like the "avoid probate" issue is really a trade-off between spending a little more time and money during estate planning vs. spending that time and money after death. In my simplistic view, there seems to be benefit to incurring that cost myself now with cooler heads than leaving it to my heirs/executor to have to deal with it while they may still be grieving. Exactly the way I look at it. If I can take steps now to tidy up things for my heirs, reduce the hassle for, them, why would I choose not to? That said, avoiding probate is not my primary reason for having a revocable trust. Having helped an elderly person as they lost the ability to manage their affairs, I saw a dramatic difference in the hassle involved for the ...
by afan
Tue Mar 05, 2024 8:42 am
Forum: Investing - Theory, News & General
Topic: Vanguard: Reasons for caution about U.S. equity valuations
Replies: 19
Views: 2864

Re: Vanguard: Reasons for caution about U.S. equity valuations

Valuations are high and this implies lower long term returns. Since it does not tell us anything about short term expected returns, there would be no reason to consider using valuations to guide short term changes in asset allocation. Low long term returns could result from a large crash followed by low or average returns. Low returns could also arise from flat markets for years. Stock prices could simply stay where they are until earnings catch up. It does make sense to adjust one's expectations about long term returns. This can help with planning around taxes, college funding, home purchases, other expenses, retirement and estates. None of this requires changing asset allocation or selling off stocks in response to high valuations. For th...
by afan
Mon Mar 04, 2024 1:06 pm
Forum: Investing - Theory, News & General
Topic: Aggressive savers: Reduce stocks % the closer you are to your target numbers?
Replies: 32
Views: 3574

Re: Aggressive savers: Reduce stocks % the closer you are to your target numbers?

I have enough to retire on, assuming SS pays as promised, in bonds. Mostly TIPS in a retirement account.
If SS payments go down, become taxable, etc, then we will make up the difference from the stock allocation. As time goes by, new money has been going into stocks, so the stock percentage goes up. We do not plan to cut stock allocation as approaching retirement, since we have already built in a safety fund.
by afan
Mon Mar 04, 2024 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: POA and Executor for couples without kids
Replies: 3
Views: 379

Re: POA and Executor for couples without kids

Who will receive whatever you own after the second death? If one or more individuals how about one of them? If charities, how about one of them?

If you have enough money, trust companies and bank trust departments will do it for a fee. Typically they appear to prefer to work as trustee than than POA. They may not do everything you would need done while alive, so you may have to shop to find a place that will do enough.
by afan
Mon Mar 04, 2024 12:34 pm
Forum: Personal Investments
Topic: How big (if at all) of a mistake would it be for me to go VT instead of VTI/VXUS in taxable?
Replies: 67
Views: 5529

Re: Strongly regretting my decision to separate into VTI/VXUS in taxable account instead of VT, unsure how to best proce

As others have noted, if perfectly matching the target allocation is that important to you, then switch to VT.

Only you can decide whether it is worth paying short term CG tax to move the money you have already invested. If the small deviations will keep you up at night and the money lost to taxes will not, then switch.

Most of us would not have noticed or cared. There is no reason to expect that correcting the tracking error will lead to higher after tax returns. But you have to follow a path that works for you.
by afan
Sat Mar 02, 2024 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Assets to put in Trust or Trust as beneficiary
Replies: 93
Views: 6424

Re: Assets to put in Trust or Trust as beneficiary

Lee answered the OP in the first response to the post.

The "J" subthread is addressing a complicated way to solve a problem along with some misunderstandings of the obligations of a trustee. Doing what Lee suggests will address the problems raised for the J family.
by afan
Sat Mar 02, 2024 2:47 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces CEO Retirement and Appointment of President
Replies: 370
Views: 34559

Re: Vanguard Announces CEO Retirement and Appointment of President

nps wrote: Sat Mar 02, 2024 12:16 pm
afan wrote: Sat Mar 02, 2024 12:00 pm And I was not even dreaming of saving a full basis point. That would be huge.
:shock:
afan wrote: Sat Mar 02, 2024 12:00 pmI was just hoping to increase returns on VTI by 0.1 basis points by reducing the office footprint for which Vanguard pays.
You'd save ten dollars per million invested
Way more than zero. I will take it if Vanguard manages to pull it off.
by afan
Sat Mar 02, 2024 2:37 pm
Forum: Personal Investments
Topic: Convert $1M+ to Roth while in high tax bracket?
Replies: 33
Views: 4271

Re: Convert $1M+ to Roth while in high tax bracket?

To the OP.

Remember that tax brackets adjust with inflation. That nominal $15M will be far less in real terms decades from now. The tax rate applied to your RMDs will depend on those adjusted rates in the future. But if you pay taxes at the top rate now instead of deferring you lose the opportunity to tax plan in the future. You miss out on QCDs. You miss out on large deductions for medical expenses later in life, which could reduce your tax bracket.

The appeal of deferral starts with moving the taxation to a time in life when your marginal rate is lower. But that is not the only advantage.
by afan
Sat Mar 02, 2024 2:31 pm
Forum: Personal Investments
Topic: Convert $1M+ to Roth while in high tax bracket?
Replies: 33
Views: 4271

Re: Convert $1M+ to Roth while in high tax bracket?

TomatoTomahto wrote: Sat Mar 02, 2024 10:13 am
we are sufficiently comfortable and can make significant charitable donations without ever having our tax deferred assets subject to taxation. QCDs for two of us are $210k annually and are inflation adjusted going forward.

How do you avoid taxation on the RMDs in excess of the QCD cap?
Those RMDs would be taxable income. If you also gave them to charity, you could deduct the contributions, but you would still pay tax on the RMDs.
by afan
Sat Mar 02, 2024 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Assets to put in Trust or Trust as beneficiary
Replies: 93
Views: 6424

Re: Assets to put in Trust or Trust as beneficiary

But Julie doesn't want to be burdened with serving as trustee at this time. I explained that (multiple times). You can't just "make" your adult child fulfill the duties of trustee. All agreed that James was the right person for this role, and the alternative will work better than anything else. It just doesn't "smell" right to the one-size-fits-all crowd. Not the first time we've seen this here. What duties? You already volunteered her to manage the investments. What else is there? Paying bills. Keeping up the house (or prepping the house for sale and selling it; or, even worse, renting it out). Selling/moving/storing personal property. I've guessing you've never had to do this kind of stuff for an elderly incapacitated...
by afan
Sat Mar 02, 2024 12:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces CEO Retirement and Appointment of President
Replies: 370
Views: 34559

Re: Vanguard Announces CEO Retirement and Appointment of President

VANG / FIDO / SCHWAB: VANG has ZERO brick & mortar presence (..okay, unless you live in Malvern, PA or El Paso, TX, maybe ) It seems no one has cited definite evidence about how many B&M sites Vanguard may have. As someone who has no interest in using a B&M office, I wish the figure truly were zero. Unless they find a way to have people who use the office pay for it, rather than making me chip in to cover the cost. I have never met in person anyone who works for my life, health, disability, or property and casualty insurance companies. I have never been to a B&M site for any of these companies. I have met the people who installed fiber optic internet at my home. I have never met anyone who is involved in running the company...
by afan
Sat Mar 02, 2024 11:18 am
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 16926

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

That is depressing. Taxes are more than all other spending combined now. I had thought that may change once earned income ended. I pay a lot in taxes now (about 1/3) and will probably have a pretty good tax bill later. But this is a choice. There's nothing keeping someone from spending more than 1/3 of their money on charity or travel or whatever. I would propose that most retirees are choosing to spend less than they could. That's the whole point of this thread. The goal was to get taxes down and savings up. I expect consumption to stay where it is. Increasing consumption would not reduce taxes and it would force savings down. The opposite of what I would like to do There is something that you could spend on that would decrease your taxes...