Search found 3754 matches

by afan
Sat Sep 22, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?
Replies: 41
Views: 2389

Re: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?

This is only true if the qualified trust is an "accumulation trust." A conduit trust can preserve the stretch while still naming a non-person (i.e. a charity) as a successor beneficiary. That said, an accumulation trust is far superior in many respects. (see my signature) Good point. I have been so...
by afan
Sat Sep 22, 2018 1:25 pm
Forum: Investing - Theory, News & General
Topic: Buckingham Strategic Wealth #12 on Barron's
Replies: 12
Views: 1285

Re: Buckingham Strategic Wealth #12 on Barron's

I followed the links and could never find out what the ranking is supposed to mean. It is definitely not just assets under management. One of the links says it is based on the answers to 102 questions but does not say what the questions are. It says they then analyze the answers but they don't say w...
by afan
Sat Sep 22, 2018 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?
Replies: 41
Views: 2389

Re: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?

Because if there is a non person, like a charity, in the chain of beneficiaries the trust cannot do the stretch. That may not be the end of the world. With an accumulation trust the money would stay in trust and be paid to the beneficiary according to the terms of the document. This could mean conse...
by afan
Sat Sep 22, 2018 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 110
Views: 5703

Re: Physical Banking - Any benefits anymore?

I'm amazed there are so many B&M banks around our neighborhood; and they keep growing. A new bank branch in Harvard Sq. in just the last couple of months. I don't know how they can be justified as there's never anyone in them. I'm sure most of the students at the couple of small, no-name colleges w...
by afan
Sat Sep 22, 2018 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Trustee for sixty something sister
Replies: 14
Views: 1082

Re: Trustee for sixty something sister

It is not clear whether the 10 year payout is in the terms of an irrevocable trust. If that was dad's idea but it is not in the trust or mom can change that then I suggest getting right of it. It seems likely that sister would be broke 10 years and one week after the payments began. A better solutio...
by afan
Sat Sep 22, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Trustee for sixty something sister
Replies: 14
Views: 1082

Re: Trustee for sixty something sister

I am a trustee in a similar situation. Beneficiary is completely incapable of holding on to money. Any that this person gets is immediately spent on... something. Runs up credit card interest, paying the minimum monthly amount, if that. Meanwhile has a small brokerage account in which this person da...
by afan
Sat Sep 22, 2018 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?
Replies: 41
Views: 2389

Re: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?

The complications arise because of the desire to leave the remaining money to a charity and to get the stretch. Since taking the stretch must be based on the age of the oldest beneficiary, it only works when all of the beneficiaries are people. Having a charity in the mix makes it impossible to do t...
by afan
Fri Sep 21, 2018 7:42 pm
Forum: Investing - Theory, News & General
Topic: Buckingham Strategic Wealth #12 on Barron's
Replies: 12
Views: 1285

Re: Buckingham Strategic Wealth #12 on Barron's

Buckingham is a fine firm, better than most probably, but these Barron’s lists are a joke. Ami Forte was named the top woman advisor by Barron’s three years in a row. She ended up getting fired from Morgan Stanley and lost the company a $34 million arbitration case. Yeah, but she was great until sh...
by afan
Fri Sep 21, 2018 7:37 pm
Forum: Investing - Theory, News & General
Topic: Are We Headed For A Passive Index Meltdown?
Replies: 54
Views: 7201

Re: Are We Headed For A Passive Index Meltdown?

Major market meltdowns are pretty common. I hope to live long enough to see several severe drops. Will the drops be CAUSED by indexing? Of course not. Indexers accept what the prices are. The prices are set by the active management side. The active managers are losing investors as more and more inve...
by afan
Fri Sep 21, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: Are We Headed For A Passive Index Meltdown?
Replies: 54
Views: 7201

Re: Are We Headed For A Passive Index Meltdown?

Shape's argument was that the active managers in aggregate have to have exactly the same returns as the market as a whole, before costs. Indexing makes sense because you get the returns of the market at far lower cost. If one could do active management at very low cost the expected return would be l...
by afan
Fri Sep 21, 2018 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?
Replies: 41
Views: 2389

Re: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?

Write a trust that can be the beneficiary of a retirement account and preserve the ability to stretch distributions over the life of the beneficiary. The trust has to be drafted with this in mind and the typical living trust would not have this language unless you had discussed this with the lawyer ...
by afan
Fri Sep 21, 2018 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone ever use a career counselor/career coach?
Replies: 7
Views: 862

Re: Anyone ever use a career counselor/career coach?

You are probably going to do better by talking with people you know who are in your field. Friends or acquaintances who can give a perspective on your current situation and career options. Someone who purports to be a a general career expert is not likely to know much about your line of work.
by afan
Fri Sep 21, 2018 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone ever use a career counselor/career coach?
Replies: 7
Views: 862

Re: Anyone ever use a career counselor/career coach?

Not in Chicago, but I had a career coach years ago. My employer paid for this and got ripped off. The person made a lot of promises but knew nothing. Absolutely nothing. At first it was puzzling since the things she said made no sense. I gather people who listened to her superficially found her glib...
by afan
Fri Sep 21, 2018 12:17 pm
Forum: Investing - Theory, News & General
Topic: Are We Headed For A Passive Index Meltdown?
Replies: 54
Views: 7201

Re: Are We Headed For A Passive Index Meltdown?

If that is true the number is so small that decades of academic research have failed to find them. Fama and French in the "Luck vs Skill" study concluded that there did exist a tiny number of skilled managers who did outperform the market. But they could not find a way to distinguish them from the l...
by afan
Fri Sep 21, 2018 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 110
Views: 5703

Re: Physical Banking - Any benefits anymore?

We have used all of the B&M services people have mentioned. Once, a few years ago, when buying an investment property, we discovered that our online so-called bank essentially did not do cashier's checks. We had to frantically transfer money to the bricks and mortar outfit, then have them issue the ...
by afan
Fri Sep 21, 2018 9:29 am
Forum: Investing - Theory, News & General
Topic: Need advise to keep investment cost and advisor fee low
Replies: 11
Views: 898

Re: Need advise to keep investment cost and advisor fee low

It is hard to imagine a good reason for trading 5-15 times a quarter. FWIW, OP might be trading with regularly timed buy orders using his salary. Biweekly paychecks means 6-7 trades per quarter. Twice that with dual incomes. Agreed, which is why I said . If these are investments due to new money co...
by afan
Fri Sep 21, 2018 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 77
Views: 5980

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

I did not see the part about 100k of income. If that is correct, then the 460k of savings early in their careers is impressive. Unfortunately, in a high cost of living area 500k would be a very cheap house. It might buy a nice 2 bedroom condo. Nothing special and not in a fancy building, but livable...
by afan
Fri Sep 21, 2018 8:23 am
Forum: Investing - Theory, News & General
Topic: Need advise to keep investment cost and advisor fee low
Replies: 11
Views: 898

Re: Need advise to keep investment cost and advisor fee low

It is hard to imagine a good reason for trading 5-15 times a quarter. If these are investments due to new money coming in, it is a good idea to put that to work right away. THEN LEAVE IT THERE. Do NOT trade in an attempt to increase your returns. This is a losing proposition. If you go with Vanguard...
by afan
Thu Sep 20, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: What is a reasonable fee charged by financial planners?
Replies: 30
Views: 2109

Re: What is a reasonable fee charged by financial planners?

MBL wrote:
Thu Sep 20, 2018 8:43 am
Never heard of the RPM spreadsheet...
Search the site for "RPM"
by afan
Thu Sep 20, 2018 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 77
Views: 5980

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

Each year that you fail to put the maximum into retirement you lose that chance forever. You cannot go back and put in extra in a later year to make up the difference. Maximize your retirement assets while you have the chance. You can put whatever you can afford into the mortgage, after maximizing r...
by afan
Thu Sep 20, 2018 6:50 am
Forum: Personal Finance (Not Investing)
Topic: What is a reasonable fee charged by financial planners?
Replies: 30
Views: 2109

Re: What is a reasonable fee charged by financial planners?

Yeah, I am beginning to think I can do it myself. I have pretty much done all the work myself anyhow. I have projected out our finances for the next 35 years and have conducted multiple "what-if" scenarios as to when distributions and social security might hit. I have used the open social security ...
by afan
Wed Sep 19, 2018 6:48 am
Forum: Personal Finance (Not Investing)
Topic: Chase Bank used to be more customer focused
Replies: 46
Views: 5754

Re: Chase Bank is the Devil

Chase aggressively markets it's Private Client service. That comes with some freebies for which they otherwise charge. I don't know whether that would include waiving this fee but it could not hurt to ask. To get it you would have to keep enough money or securities at Chase to earn PC status. May or...
by afan
Wed Sep 19, 2018 6:39 am
Forum: Personal Finance (Not Investing)
Topic: A Frustration w/ Ally Bank, Trust Account, and Paperless Statements
Replies: 21
Views: 1372

Re: A Frustration w/ Ally Bank, Trust Account, and Paperless Statements

If someone reports getting them to stop sending paper then it appears not be be a policy that they must do this for trust accounts. This sounds more like a customer service problem. Annoying as it may be, often the solution is to escalate the concern past the person who answers the phone. Politely b...
by afan
Tue Sep 18, 2018 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Chase Bank used to be more customer focused
Replies: 46
Views: 5754

Re: Chase Bank is the Devil

When I left my bank after having an account for 40 years, they did not even send me a letter to ask why I was leaving. They also never sent any offers to have me return to them. Apparently, they did not care. I assume the attitude would have been different if you were generating even single digit m...
by afan
Tue Sep 18, 2018 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Are there professional trustees that charge by the hour?
Replies: 4
Views: 491

Re: Are there professional trustees that charge by the hour?

Depending on the situation, lawyers are sometimes willing to act as trustee at their usual hourly rates. That is fascinating. I would have thought the liability concerns raised by gotlucky would have required the lawyers to charge a substantial minimum annual fee, on top of whatever they bill for l...
by afan
Tue Sep 18, 2018 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Dilemma: Add room to current house or buy new house?
Replies: 93
Views: 4472

Re: Dilemma: Add room to current house or buy new house?

We have a partly finished basement that I use every day. The broader issue is whether this makes financial sense. There is a big gap between "we could borrow the money and make timely payments on the loan" and the much more stringent "we can afford it" . You clearly have an expensive life style. Not...
by afan
Tue Sep 18, 2018 6:38 am
Forum: Personal Finance (Not Investing)
Topic: Dilemma: Add room to current house or buy new house?
Replies: 93
Views: 4472

Re: Dilemma: Add room to current house or buy new house?

Even if OP can easily affordable it, this is too little an upgrade for far too much money. Working with an architect to make the most of the space you have is a far better idea. Finish and use the basement. The kids, at least, will be happy with a basement hangout. With your budget you do not have t...
by afan
Sun Sep 16, 2018 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Beneficiary unallowed in joint taxable -move to single acct?
Replies: 10
Views: 734

Re: Beneficiary unallowed in joint taxable -move to single acct?

This is yet another reason to use a funded revocable trust. You can design the successor beneficiaries to suit your estate plan. Simply making your child the beneficiary will accomplish little since it will be many years before they could do anything with it. Until then there would need to be a guar...
by afan
Sat Sep 15, 2018 5:12 am
Forum: Personal Finance (Not Investing)
Topic: Living trusts and relabeling accounts
Replies: 28
Views: 1943

Re: Living trusts and relabeling accounts

How things are titled depends on your overall estate plan and your state law. Changing ownership of assets could foil some of your plans. For an asset that is yours alone and you intend to keep it that way putting it in a joint trust could be a problem. Putting your home in a jount trust could give ...
by afan
Fri Sep 14, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Planning to Contact Vanguard
Replies: 29
Views: 1769

Re: Planning to Contact Vanguard

As far as I know, Vanguard does not offer financial planning independent of investment management. If you have assets at Vanguard they will do a plan. It might be free, if you have enough money there. Otherwise they will charge. But if you want an opinion but do not have money at Vanguard they have ...
by afan
Thu Sep 13, 2018 5:46 am
Forum: Personal Finance (Not Investing)
Topic: Durable Power of Attorney: Implementation Report
Replies: 54
Views: 3837

Re: Durable Power of Attorney: Implementation Report

Also possible that I just got lucky in that the single broker with which I was dealing had excellent customer service. They had a division that handled trusts and estates. They knew exactly what they were doing and did this all the time. This was one of the giant national firms and fully comfortable...
by afan
Thu Sep 13, 2018 5:37 am
Forum: Personal Finance (Not Investing)
Topic: Durable Power of Attorney: Implementation Report
Replies: 54
Views: 3837

Re: Durable Power of Attorney: Implementation Report

Longruninvestor, So sorry to hear about those problems. From what you report it may have been that you were dealing with multiple different brokers and transferring assets after the death? In my case all the assets titled in the name of the trust were held in one account at one broker. We got that d...
by afan
Wed Sep 12, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: My daughter's inheritance.
Replies: 63
Views: 7988

Re: My daughter's inheritance.

you get a full time advisor ready to hold your hand through setting up an estate plan, hiring CPAs or attorneys, structuring an income distribution plan, making sure required minimum distributions are taken and structured properly from retirement accounts, and setting up trusts for children etc. In...
by afan
Wed Sep 12, 2018 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Planning to Contact Vanguard
Replies: 29
Views: 1769

Re: Planning to Contact Vanguard

Vanguard will do a retirement plan for you. Depending on how much you have with them, this might be free. They will project your income and make suggestions for funds into which you should invest..

They will probably try to sell you the Personal Advisor Service, but you can politely decline.
by afan
Wed Sep 12, 2018 11:32 am
Forum: Personal Finance (Not Investing)
Topic: My daughter's inheritance.
Replies: 63
Views: 7988

Re: My daughter's inheritance.

Gill wrote:
Wed Sep 12, 2018 10:50 am
afan wrote:
Wed Sep 12, 2018 9:48 am
Do not sign up with anyone who will charge more than 0.3% of assets.
I'm glad I'm no longer selling bank trust services when I see comments like this! :happy :happy :happy
Gill
Well, I did say they had no need of trust services. Just money management, if that.
by afan
Wed Sep 12, 2018 9:48 am
Forum: Personal Finance (Not Investing)
Topic: My daughter's inheritance.
Replies: 63
Views: 7988

Re: My daughter's inheritance.

Do not sign up with anyone who will charge more than 0.3% of assets. Do not sign up with anyone who sells commissioned products. Do not deal with brokers like Morgan Stanley, Edward Jones or the like. They will charge far too much money, sell overpriced funds, churn the account to generate commissio...
by afan
Wed Sep 12, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders
Replies: 20
Views: 5483

Re: Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders

It is difficult to imagine what individual investor should be doing active trading of individual stocks. If such people exist then Interactive Brokers should be their company. For everyone else, they should be buying either mutual funds, priced at the days close, no HFT games or liquid ETFs with one...
by afan
Tue Sep 11, 2018 5:00 pm
Forum: Investing - Theory, News & General
Topic: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars
Replies: 53
Views: 4579

Re: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars

Lots of speculation here on bogleheads but has anyone seen something from Fidelity about what they do with the income from securities lending for the zero funds? For Vanguard many of the stick index funds bring in more money from lending than charged in the expense ratio. So the net cost is negative...
by afan
Tue Sep 11, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement accounts transfer question
Replies: 14
Views: 1019

Re: Retirement accounts transfer question

It will be worth moving money from the bad former employer account to the good new employer account. But with you both going from fellowship to practice the amounts in the future employer accounts are going to be much more than what you could accumulated during training. Makes sense to maximize what...
by afan
Tue Sep 11, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Going off-track of asset allocation due to high savings rate
Replies: 47
Views: 2822

Re: Going off-track of asset allocation due to high savings rate

I suppose the good news is that there is not that much at stake. If international continues to trail US for decades, then you will have been better off with more in US. If at some point international starts to do better than US, you will be glad to have the international exposure. No one knows which...
by afan
Mon Sep 10, 2018 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Pre nups.
Replies: 70
Views: 8998

Re: Pre nups.

Way too sweeping a statement. Bsteiner is an estates and trusts attorney, practices in NY and gives away advice on here. Has been doing so for years. There are also a number of CPAs who regularly provide tax advice. Gill is both an attorney and a CPA and regularly gives advice. I suspect all of them...
by afan
Mon Sep 10, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Do you have an umbrella policy?
Replies: 278
Views: 29225

Re: Do you have an umbrella policy?

Uninsured/underinsured motorist coverage is a standard feature of umbrella policies.
by afan
Mon Sep 10, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Revocable trust
Replies: 5
Views: 491

Re: Revocable trust

You don't want the trust as beneficiary of the accounts anyway. You want the trust as owner of the accounts. Some banks might have problems with what it says on the checks. If you don't want to show the trust on the checks, then either find a bank that will let you put some abbreviation of the full ...
by afan
Mon Sep 10, 2018 8:02 am
Forum: Personal Finance (Not Investing)
Topic: My daughter's inheritance.
Replies: 63
Views: 7988

Re: My daughter's inheritance.

It sounds like the trust was recently created as part of estate planning, before the father died. The money in the trust came from the buy sell agreement but it probably does not matter where it came from. If the trust was created recently, then there is a chance that it provides for the daughter in...
by afan
Sun Sep 09, 2018 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Should I keep my financial advisor
Replies: 130
Views: 7483

Re: Should I keep my financial advisor

Great discussion. Not worth paying thousands of dollars a year to an advisor to optimize placement.

And we got this advice from tfb for free.
by afan
Sun Sep 09, 2018 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Fee only Financial planners
Replies: 31
Views: 2607

Re: Fee only Financial planners

Investing is simple and it is not possible for anyone to do better than the market. So there is nothing for an advisor to do.

The noninvestment work, for which it would be possible for an advisor to be useful, only pays under an advice only model.
by afan
Sun Sep 09, 2018 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Should I keep my financial advisor
Replies: 130
Views: 7483

Re: Should I keep my financial advisor

Perhaps, but human error happens with paid preparers as well.
by afan
Sat Sep 08, 2018 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Should I keep my financial advisor
Replies: 130
Views: 7483

Re: Should I keep my financial advisor

An alternative is the Schwab Intelligent Advisory service. The price is similar to Vanguard to start, 0.28%, rather than 0.3% of AUM, but the fees are capped at $3600/year. So you pay the same for a $10M portfolio as a $1.5M one. That makes it a better deal as the portfolio gets bigger. Like Vanguar...
by afan
Sat Sep 08, 2018 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage accelerator?
Replies: 16
Views: 1059

Re: mortgage accelerator?

It would not make sense to save up $400/month to lump sum payment at the end of the year. While you are saving your mortgage balance remains higher. It would make more sense to pay the extra $400 when you get it, monthly if that is how your pay comes in. The whole pitch of the HELOC revolves around ...
by afan
Sat Sep 08, 2018 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Should I keep my financial advisor
Replies: 130
Views: 7483

Re: Should I keep my financial advisor

^Thank you for making my point. If a person has $200k and invests in Bitcoin and loses 60%, they lose $120k. Net worth = $80k. If a person has $200k and invests in an index fund that makes 10%, they make $20k. Net worth $220k. Less the $5k fee, net worth = $215k. So how much is a financial advisor ...