Search found 3342 matches

by afan
Thu Apr 26, 2018 4:45 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Financial Perils Of Old Age
Replies: 34
Views: 3666

Re: Larry Swedroe: Financial Perils Of Old Age

My main experience was with one elderly person who planned carefully for the late years. This person shopped extensively for continuing care communities and found one not to far from home. Bought in long before there was any need. Would often have dinner there then return home. Had lots of friends a...
by afan
Tue Apr 24, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Using Vanguard’s advisors
Replies: 62
Views: 6165

Re: Using Vanguard’s advisors

I have not seen how "most tax-efficient way" has ever been used by Vanguard when a transfer is done. I have never used PAS, so I don't have direct experience. One friend who was using Vanguard years ago said that they not only kept some of the individual stocks they had transferred in (I assume to ...
by afan
Tue Apr 24, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Using Vanguard’s advisors
Replies: 62
Views: 6165

Re: Using Vanguard’s advisors

What if your heirs know nothing about investing? Isn't Vanguard Personal Advisory Service better than having them own a life strategy fund? It is pretty much the same thing. You get the same portfolio. Except that with PAS they would be paying 0.3% of assets on top of the mutual fund expense ratios.
by afan
Tue Apr 24, 2018 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Stock
Replies: 7
Views: 241

Re: Gifting Stock

It was OK up until the son gifted the stock back. This would be a perfectly fine way to transfer money to a young person you are supporting. Just skip the part about getting the proceeds back.
by afan
Tue Apr 24, 2018 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Using Vanguard’s advisors
Replies: 62
Views: 6165

Re: Using Vanguard’s advisors

Given the lack of non-investment financial planning advice and the standardized portfolio, one could save the 0.3% fee and simply buy a life strategy fund. You would get the same investments and the same non-customized management. Things could be a lot worse, but I don't see that PAS delivers anythi...
by afan
Tue Apr 24, 2018 11:03 am
Forum: Investing - Theory, News & General
Topic: I’m still not a fan of international bond funds
Replies: 142
Views: 8704

Re: I’m still not a fan of international bond funds

Another consideration: Taxes If one holds international bonds in tax deferred investments, one gives away the foreign tax credits. If one holds them in taxable, even with the tax credit it would be easy to be better off in munis. Is Roth the only place the tax issues permit holding international bon...
by afan
Mon Apr 23, 2018 4:23 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5597

Re: Factor Investing - A convincing article

The thing is, and as a math grad student, I am sure you understand: this is far more interesting than it is useful. The articles I cited are not about beating the market. They are about what characteristics of stock return distributions drive the investment choices market participants make collectiv...
by afan
Mon Apr 23, 2018 2:44 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5597

Re: Factor Investing - A convincing article

Greg Mankiw offered advice for students aspiring to enter top economics PhD programs. He says that econ programs like to see a lot of, undergraduate, math on the transcript to prove the student is smart enough to do well in research and not afraid of the quantitative side. He lists the following as ...
by afan
Mon Apr 23, 2018 10:02 am
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 103
Views: 8346

Re: NYT article: Everyone should hire a financial planner

If you remove the AUM fee you end up with an "advice only" model. Like an attorney or tax preparer, who charges for the work they actually do. When they have done nothing they get paid nothing. 99.99999% of the time, the asset manager is doing nothing. And that is a very good thing. If you want some...
by afan
Mon Apr 23, 2018 9:37 am
Forum: Investing - Theory, News & General
Topic: Vanguard factor funds slow to catch on
Replies: 50
Views: 3994

Re: Vanguard factor funds slow to catch on

Rick's analysis suggests that Vanguard reached out to advisors and expected a stronger response. Does anyone know? The alternative explanation is that Vanguard investors don't buy the hype. If they wanted factor funds they would buy them from Vanguard. But they don't want factor funds. Vanguard is p...
by afan
Mon Apr 23, 2018 4:38 am
Forum: Personal Consumer Issues
Topic: Your own General Contractor
Replies: 33
Views: 2717

Re: Your own General Contractor

I had a neighbor whose brothers were contractors. They build his house for him. But they did it the way they did all their other houses. They used leftover supplies from other projects, used the cheapest, as opposed to the best , subcontractors. They had long halts in the process when they had more ...
by afan
Sun Apr 22, 2018 7:14 am
Forum: Personal Finance (Not Investing)
Topic: Will question
Replies: 28
Views: 2382

Re: Will question

Meeting in person takes time. Getting to the attorney's office, parking, introductory small talk all eat up time. A trip to see the lawyer for an hour appointment can easily knock three hours out of your day. And not all of the hour would be spent on substance of estate planning. By email, all of th...
by afan
Sat Apr 21, 2018 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Will question
Replies: 28
Views: 2382

Re: Will question

I would not worry about how far away a good attorney might be. When we revised our estate plans we did everything over the phone and by email. We only met the attorney when we went to her office to sign the papers. We went there out of curiosity, and the office was downtown. It was a little easier b...
by afan
Sat Apr 21, 2018 7:06 am
Forum: Personal Finance (Not Investing)
Topic: Will question
Replies: 28
Views: 2382

Re: Will question

For example: I read about some billionaire who, I think, was disclosing his assets because he was taking a government job. Just the list of investments, LLCs, LPs, and other forms of holding went on for more than 100 pages. Or so the article said, I did not look myself. For someone like that, partic...
by afan
Sat Apr 21, 2018 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Will question
Replies: 28
Views: 2382

Re: Will question

... We recently had ours amended/restated ..... it was over 100 pages. .... Why over 100 pages? Do they charge based on number of pages rather than time? Don’t think I’ve ever seen a 100 page trust. :happy Gill Gill, That is remarkable, given your background. So even the very wealthy who would have...
by afan
Sat Apr 21, 2018 6:45 am
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 103
Views: 8346

Re: NYT article: Everyone should hire a financial planner

The term "fee only" has been corrupted by planners who charge high AYM fees and some charge "fees" rather than commissions, for transactions. One can find "advice only" planners who bill for their time, like lawyers, or at set prices for specific services. Most importantly, during the vast majority ...
by afan
Thu Apr 19, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Will question
Replies: 28
Views: 2382

Re: Will question

To the OP, I and other bogleheads have discovered that there are a lot of lawyers who will offer estate planning but who are not experts. The laws are complicated as are considerations that are not directly legal issues but need the help of someone who understands the overall picture. There are plen...
by afan
Thu Apr 19, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Will question
Replies: 28
Views: 2382

Re: Will question

bsteiner, Thanks for the comments about tax vs estate planning attorneys. I know that some estate planning attorneys get masters degrees in tax. I realize that an estates and trusts lawyer has to know enough tax to account for the tax implications of the estate plan. I have imagined that there are m...
by afan
Thu Apr 19, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5597

Re: Factor Investing - A convincing article

I am doubt these require a graduate math background, just some patience. They are written by finance professors for finance professors. To be a finance doctoral student one has to be comfortable with math, but does not need an advanced degree in the field. If you have that background then you will n...
by afan
Thu Apr 19, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5597

Re: Factor Investing - A convincing article

Another reference about higher moments that illustrates why "highest Sharpe ratio" is not the full definition of "best performance" "Sharpening Sharpe Ratios" William Goetzmann, Jonathan Ingersoll, Matthew Spiegel, Ivo Welch There are strategies that generate high Sharpe ratios most of the time, but...
by afan
Thu Apr 19, 2018 2:12 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5597

Re: Factor Investing - A convincing article

It is a statistical way of describing the distribution of and associations between a sample of points. A brief discussion from Wikipedia Coskewness From Wikipedia, the free encyclopedia In probability theory and statistics, coskewness is a measure of how much three random variables change together. ...
by afan
Thu Apr 19, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Account for Adult Children Allowing Parent Some Control
Replies: 31
Views: 3264

Re: Account for Adult Children Allowing Parent Some Control

If the income is left in the Trust, it is taxed at maximum rate, which sort of defeats the purpose. Also, I'm not certain it is true that moving income into a Trust will exclude it from Estate taxes. The income is not subject to estate tax. The amount owned by someone at death would be subject to e...
by afan
Thu Apr 19, 2018 10:35 am
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5597

Re: Factor Investing - A convincing article

For example Asset Pricing When Returns Are Nonnormal: Fama‐French Factors versus Higher‐Order Systematic Comoments Y. Peter Chung, Herb Johnson and Michael J. Schill The Journal of Business Vol. 79, No. 2 (March 2006), pp. 923-940 IV. Summary and Conclusions We can reject normality of returns for da...
by afan
Thu Apr 19, 2018 10:16 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: What Hampers Pension Plans
Replies: 30
Views: 2771

Re: Larry Swedroe: What Hampers Pension Plans

Remember that the pension funds and not investing in these alternatives because they have higher expected risk adjusted returns. They are investing in these alternatives because they permit the pension fund to report higher expected nominal returns, which they must do for regulatory reasons. The shi...
by afan
Thu Apr 19, 2018 4:53 am
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5597

Re: Factor Investing - A convincing article

Perhaps it was worded inelegantly, but I don't believe Roth was saying that small value will outperform the total market over the next five years. I think he was saying that it would do better RELAIVE TO THE MARKET, than it has over the last five years. Since it has trailed the market badly for 5 ye...
by afan
Wed Apr 18, 2018 6:35 am
Forum: Personal Finance (Not Investing)
Topic: Account for Adult Children Allowing Parent Some Control
Replies: 31
Views: 3264

Re: Account for Adult Children Allowing Parent Some Control

This is a common desire with a straightforward solution: Trust. Income retained in the trust will be taxable to the trust, not to the kids. They will be taxed only on income distributed to them. As trustee you would retain control of investments and distributions. Money in the trust will be out of y...
by afan
Wed Apr 18, 2018 6:27 am
Forum: Personal Finance (Not Investing)
Topic: Will question
Replies: 28
Views: 2382

Re: Will question

You need a more qualified attorney. These are routine questions for someone who practices estates and trusts law. You will need a trust to hold the assets for your kids if both parents die while they are minors. The trustee could be the guardian or someone else. The trust should be written to hold t...
by afan
Mon Apr 16, 2018 2:41 pm
Forum: Investing - Theory, News & General
Topic: We crush stock indexes, Yale claims
Replies: 98
Views: 11131

Re: We crush stock indexes, Yale claims

Much of Yale's holdings are in illiquid assets that rarely trade. The valuation must involve a good deal of estimation. I wonder how reliable their reported returns and performance actually are. I once raised that point to the head of a large endowment. He would not look me in the eye, mumbled some...
by afan
Mon Apr 16, 2018 7:52 am
Forum: Investing - Theory, News & General
Topic: Using Stock/Bond Market Total Valuations to Guide Portfolio Allocations
Replies: 9
Views: 1014

Re: Using Stock/Bond Market Total Valuations to Guide Portfolio Allocations

The problem is inefficiencies that prevent people from holding the true market portfolio then adjusting their risk level with leverage. In theory, everyone could borrow at the risk free rate. Those who wanted a higher expected return than the market portfolio would hold the market portfolio as the o...
by afan
Mon Apr 16, 2018 7:35 am
Forum: Investing - Theory, News & General
Topic: 2017 Yale Endowment Report
Replies: 13
Views: 978

Re: 2017 Yale Endowment Report

It is interesting, but several observations. Yale clearly includes equity ownership in it's absolute return asset class. So the actual ownership of stocks is higher than one would think just by looking at the table. Some of the strategies listed under absolute return might include other types of sec...
by afan
Sun Apr 15, 2018 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts and "managed" accounts
Replies: 5
Views: 509

Re: Trusts and "managed" accounts

You can find some investment managers who will handle an all index portfolio for a flat fee of a few thousand dollars. Assuming you have an individual who will serve as trustee for free, or at least a lot less than a bank, you could get the cost down very low. But if you think there will be more tha...
by afan
Sun Apr 15, 2018 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: "New" wrinkles on domestic asset protection trusts?
Replies: 4
Views: 532

Re: "New" wrinkles on domestic asset protection trusts?

Opinions differ as to how well they work That is the question. How well do they work? Agree that for a physician whose primary exposure is medical malpractice, getting higher coverage limits is almost certainly less expensive and more effective. Similarly, for those whose exposures would be covered...
by afan
Sun Apr 15, 2018 4:02 pm
Forum: Personal Consumer Issues
Topic: Should I prewire my home network myself?
Replies: 40
Views: 2290

Re: Should I prewire my home network myself?

I have done some cabling. It was well worth it. In both cases there were places in the house not well covered by wifi. The cables reduce the demands on the mesh. But if my walls were open I would do conduit instead. Cables change over time and you won't want to open up the walls again to replace them.
by afan
Sun Apr 15, 2018 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: "New" wrinkles on domestic asset protection trusts?
Replies: 4
Views: 532

Re: "New" wrinkles on domestic asset protection trusts?

Both articles refer to the same Alaska case. The solutions proposed in the article I cited seem beside the point. They assume the assets have been successfully protected in the DAPT and the only question is whether the grantor can be a beneficiary. The moves to pretend the grantor is not a beneficia...
by afan
Sun Apr 15, 2018 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Account for Adult Children Allowing Parent Some Control
Replies: 31
Views: 3264

Re: Account for Adult Children Allowing Parent Some Control

You can create trusts with yourself as trustee and the adult children as beneficiaries. You can have a lot of discretion over whether to make payments to them or retain the money in trust. You would have to decide whether the amount of money you have in mind is worth the cost and hassle of the trust.
by afan
Sun Apr 15, 2018 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts and "managed" accounts
Replies: 5
Views: 509

Re: Trusts and "managed" accounts

Have you discussed this with your lawyer? It seems that you are reinventing the wheel, and encountering roadblocks as a result. The most straightforward solution would be to hire a corporate trustee that accepts the liability as a cost of doing business. This corporate trustee could include managing...
by afan
Fri Apr 13, 2018 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: How do I make sure IRS receives my manual tax return ?
Replies: 84
Views: 5147

Re: How do I make sure IRS receives my manual tax return ?

Old, but this says that a postmark date or a postmark on the certified receipt is proof of timely filing. https://www.irs.gov/pub/lanoa/pmta00344_7093.pdf I have had the IRS receive a return, hold the check for two weeks before cashing it, then claim we filed late. Having a copy of my certified rece...
by afan
Fri Apr 13, 2018 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about Estate Planning - Minor Beneficiaries
Replies: 3
Views: 463

Re: Questions about Estate Planning - Minor Beneficiaries

Gill is an expert and that is exactly what you should do. Reading his posts, and those of bsteiner will give you a wealth of information. The trustee of the trust will manage the finances on behalf of your child. You ALSO need a will. If nothing else, you need to nominate guardians for your child, o...
by afan
Fri Apr 13, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Appropriate to ask co-worker when retiring?
Replies: 35
Views: 2290

Re: Appropriate to ask co-worker when retiring?

Maybe I am missing something, but I don't see the point of asking or why it would be useful to know. Right now, the position is occupied and the job is not open. So no one can apply for it. If the person currently in the job were to retire then the job would become open and it would be possible to a...
by afan
Fri Apr 13, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: "New" wrinkles on domestic asset protection trusts?
Replies: 4
Views: 532

"New" wrinkles on domestic asset protection trusts?

At least new to me. Micheal Kitces has a pointer to this article. https://www.financial-planning.com/news/what-is-a-dapt-domestic-asset-protection-trusts-for-tax-planning It suggests that there are even more hurdles for a resident of a state that does not favor domestic asset protection trusts. One ...
by afan
Tue Apr 10, 2018 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Ivy school education. Is it worth it?
Replies: 238
Views: 12488

Re: Ivy school education. Is it worth it?

I suspect that the average Harvard student is smarter now than they were in the past. The influence of legacy and coming from the right high schools is much smaller, they get far more applicants and now try to build a class with less regard to socioeconomic class. So a larger share of the student bo...
by afan
Tue Apr 10, 2018 3:31 pm
Forum: Personal Consumer Issues
Topic: [What UN-frugal thing do you do? What do you splurge on?]
Replies: 567
Views: 37426

Re: Name something you bought that wasn't cheap and glad you did

I try to avoid buying things. But I suppose I could say "my home". None are cheap and it has been a good investment. Our cars were cheap as cars go, but all cars are expensive. Ours throughout the years have been durable, safe and reliable, so happy about that. Other than that- far from cheap but we...
by afan
Mon Apr 09, 2018 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Ivy school education. Is it worth it?
Replies: 238
Views: 12488

Re: Ivy school education. Is it worth it?

Very familiar with the process. My son was recruited last year for a sport at 2 ivies. There was no athletic scholarship and no financial aid. We had conversations with the coach and admissions office of one of the schools. Guess we make too much money. He did get a number of generous offers from o...
by afan
Mon Apr 09, 2018 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Ivy school education. Is it worth it?
Replies: 238
Views: 12488

Re: Ivy school education. Is it worth it?

McGill is not in the Ivy League. There are only and exactly 8 schools in the Ivies. This is interesting. It's part of the Ivy League for sports, as I understand it? So it's technically "Ivy League"? I agree it's not in the 8 schools (neither is Stanford, but for all practical purposes we could call...
by afan
Mon Apr 09, 2018 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Ivy school education. Is it worth it?
Replies: 238
Views: 12488

Re: Ivy school education. Is it worth it?

McGill is not in the Ivy League. There are only and exactly 8 schools in the Ivies. "Going into business" is not the same thing as "getting an undergrad degree in business". Harvard does not have an undergrad business concentration, for example, but many Harvard grads go into business. Many Penn stu...
by afan
Mon Apr 09, 2018 8:25 am
Forum: Personal Finance (Not Investing)
Topic: What age is the best to give a child control of an inheritance?
Replies: 192
Views: 10726

Re: What age is the best to give a child control of an inheritance?

Asset protection has nothing to do with "mishandling" by the heirs or their competence. :confused Thank you for the lesson. Again, I'm not worried about others swooping in and taking my money, which I no longer need, from my heirs..."legally or otherwise". Plenty of safeguards in place with our est...
by afan
Mon Apr 09, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Ivy school education. Is it worth it?
Replies: 238
Views: 12488

Re: Ivy school education. Is it worth it?

On the narrow topic of research opportunities: At the top private universities there are research opportunities for all of the undergrads who want them. Understand that, to the general public, these places are beat known for their undergrad education. But within academics they are known for their re...
by afan
Sun Apr 08, 2018 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Ivy school education. Is it worth it?
Replies: 238
Views: 12488

Re: Ivy school education. Is it worth it?

Students vary too much to answer whether "an Ivy education" is worth it. Ivy universities vary too much to answer whether "they" are worth it. There are no reliable stats on income distributions of grads of Ivies or any other colleges. One's long term financial status depends on more than the income...
by afan
Fri Apr 06, 2018 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Undecided students and STEM majors
Replies: 51
Views: 3988

Re: Undecided students and STEM majors

As people have noted above, it is a matter of resources. The expensive private colleges have low student/faculty ratios and lots of classroom and lab space. They can admit students and let them figure out their majors once they get there. The admissions office trys to build a class that will include...