Search found 853 matches

by ThePrune
Sun Jul 23, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: AXA Structured Variable Annuity - Help me calculate fees/returns
Replies: 10
Views: 535

Re: AXA Structured Variable Annuity - Help me calculate fees/returns

So one other question as in prospectus I see the 1.25% you mention and another mention of .61-.72% for underlying investment so would that be added to the 1.25 or is that somehow separate? This is on page 13 of prospectus. In a variable annuity such as this AXA Structured Capital Strategies you als...
by ThePrune
Sun Jul 23, 2017 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: RIA [Registered Investment Advisor]
Replies: 4
Views: 306

Re: RIA [Registered Investment Advisor]

I studied using the book, Pass the 65. I thought it was reasonably well organized and yet still detailed.
by ThePrune
Sun Jul 23, 2017 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: AXA Structured Variable Annuity - Help me calculate fees/returns
Replies: 10
Views: 535

Re: AXA Structured Variable Annuity - Help me calculate fees/returns

Next I'd like to post just one quantitative calculation that shows just how bad an investment the AXA Structured Strategies Annuity will be. Since you commented on the Series B, Standard Segment investment over a 5 year period, I chose to model that combination using the Monte Carlo FIA Modeler that...
by ThePrune
Sun Jul 23, 2017 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: AXA Structured Variable Annuity - Help me calculate fees/returns
Replies: 10
Views: 535

Re: AXA Structured Variable Annuity - Help me calculate fees/returns

From within the prospectus (Page 14 of prospectus / page 16 of the electronic document) I see the following table estimating fees. Assumes $10k initial investment with 5% return each year. Does note actual costs may be higher or lower, but based upon those assumptions the costs would be (Class B sh...
by ThePrune
Wed Jul 19, 2017 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Ameriprise Variable Annuity - Sell now or wait?
Replies: 3
Views: 324

Re: Ameriprise Variable Annuity - Sell now or wait?

Graz, I took a look at the brochure for this VA. There IS a way to eliminate those high annual fees if you are willing to switch all your VA funds over to either the Guaranteed Period Account or the Regular Fixed Account. In essence you would be using this VA as a part of your fixed income allocatio...
by ThePrune
Sat Jul 01, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Parents Social Security payments, deceased Father.
Replies: 8
Views: 831

Re: Parents Social Security payments, deceased Father.

As I understand it she is entitled to his SS payment as a survivorship benefit .... Although it typically works out that the lower-earning survivor ends up getting exactly the same benefit that the deceased spouse was receiving, there are exceptions . For those who want to explore this topic in exc...
by ThePrune
Sat Jul 01, 2017 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security
Replies: 17
Views: 2042

Re: Social Security

You mention a computer program, to figure benefits, what is a good one? Free Social Security optimizer programs I have used and found to be decent : Social Security Maximizer You need to create an account to use the program, but no charge to do so. SSAnalyze hosted by Bedrock Capital. AARP Social S...
by ThePrune
Fri Jun 30, 2017 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security
Replies: 17
Views: 2042

Re: Social Security

I have a wife 2 years younger than me and if I understand it correctly if she is going to use her spousal benefit that she can go ahead and file and collect on her record when she turns 66 (born in 1954) and then when I file at 70 she can then get the spousal benefit. So for her to wait till 70 wou...
by ThePrune
Fri Jun 30, 2017 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security
Replies: 17
Views: 2042

Re: Social Security

Here's the part of the Motley Fool article that mentions a case when waiting to file for Social Security benefits might not make sense: Because there's no longer a file-and-suspend-related incentive to wait, many families find that the downside of giving up a larger monthly payment for your own reti...
by ThePrune
Thu Jun 29, 2017 10:52 am
Forum: Investing - Help with Personal Investments
Topic: AXA Structured Capital Strategies
Replies: 16
Views: 870

Re: AXA Structured Capital Strategies

I do understand that this thing and a market cd are not good replacement for stocks. As a replacement for bonds or a regular cd I am unclear as tp why it is so bad? The median expected return for this thing is about equivalent to a 2% cd for 12 years. For arguments sake, lets say the median return ...
by ThePrune
Wed Jun 28, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: AXA Structured Capital Strategies
Replies: 16
Views: 870

Re: AXA Structured Capital Strategies

In general, avoid any investment you can't understand (and others in the posting stream have already reminded you of that basic fact of investing). But just for fun I decided to perform a quantitative analysis of one of the investment options offered by this AXA Variable Annuity (VA) product. Here i...
by ThePrune
Tue Jun 27, 2017 9:15 pm
Forum: Investing - Theory, News & General
Topic: Investor Analysis of Index Annuities
Replies: 31
Views: 3535

Re: Investor Analysis of Index Annuities

As mentioned in the previous posting, more and more FIAs are being to be sold with attached Guaranteed Living Benefit (GLB) riders. Such riders will almost always have an associated annual fee ; I've typically seen fees from 70 to 125 basis points annually. To incorporate the "performance drag&...
by ThePrune
Mon Jun 26, 2017 3:09 pm
Forum: Investing - Help with Personal Investments
Topic: Is structured notes sound investment choice?
Replies: 18
Views: 1190

Re: Is structured notes sound investment choice?

Fidelity has some of these that are CD's with FDIC guarantees . Much more conservative but I have never seen anything very tempting. It can be a peculiar type of FDIC coverage, however. For example here is the exact description of the FDIC coverage on a 7 year J.P.Morgan Structured CD that was bein...
by ThePrune
Mon Jun 26, 2017 2:51 pm
Forum: Investing - Theory, News & General
Topic: The 5 Pitfalls of Mutual Funds by,....
Replies: 22
Views: 1974

Re: There are almost always better options than mutual funds.

At least when I gave them a thorough look 8 years ago, Fisher Investments (a Registered Investment Advisory firm, an RIA) used a " Separately Managed Account " approach. I know of a few local RIAs that also use Separately Managed Accounts. In essence the portfolio investment committee at t...
by ThePrune
Sun Jun 25, 2017 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Is structured notes sound investment choice?
Replies: 18
Views: 1190

Re: Is structured notes sound investment choice?

Mingfriz , please post the exact name of the structured note you are looking at, along with an internet link (if you have it) to the prospectus. This will help me give you some definitive advice. When I read your original posting, I realized that I could quantitatively model your structured note us...
by ThePrune
Sun Jun 25, 2017 5:29 am
Forum: Investing - Help with Personal Investments
Topic: Use my HSA for another person
Replies: 7
Views: 618

Re: Use my HSA for another person

Are LTC insurance premiums even a qualified expense? I didn't think so. According to IRS Publication 969 on Health Savings Accounts, LTC insurance premiums are qualified medical expenses, at least up to a limit. Insurance Premiums . You can't treat insurance premiums as qualified medical expenses u...
by ThePrune
Sun Jun 25, 2017 5:21 am
Forum: Investing - Help with Personal Investments
Topic: Is structured notes sound investment choice?
Replies: 18
Views: 1190

Re: Is structured notes sound investment choice?

Mingfriz , please post the exact name of the structured note you are looking at, along with an internet link (if you have it) to the prospectus. This will help me give you some definitive advice. When I read your original posting, I realized that I could quantitatively model your structured note us...
by ThePrune
Sat Jun 24, 2017 8:22 pm
Forum: Investing - Theory, News & General
Topic: Investor Analysis of Index Annuities
Replies: 31
Views: 3535

Re: Investor Analysis of Index Annuities

I never viewed our FIa as investing but as Market insurance and a future income stream. We are coming up on the 5th anniversary on one of the GLWB FIa. Initial purchase at $100,000. Guess on Acct Value is ~$108,000 on 5th anniv. GLWB Income Acct value will be 127,628$ @5% compounding. We no longer ...
by ThePrune
Sat Jun 24, 2017 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying pension benefits - what would you do?
Replies: 17
Views: 2017

Re: Delaying pension benefits - what would you do?

+1 I agree with #Cruncher 's strictly financial analysis. From a Risk Control perspective : (1) Do you have any reason to believe that future pension payments would be at risk of severe reduction or termination? (Example: a public pension paid by Illinois). If so, it might be a reason to start the p...
by ThePrune
Sat Jun 24, 2017 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: Use my HSA for another person
Replies: 7
Views: 618

Re: Use my HSA for another person

The answer to almost any H.S.A.-related question can be found in IRS Publication 969 - Health Savings Account and Other Tax-Favored Health Plans . According to this IRS document, here are the rules for taking a Qualified (i.e. tax and penalty-free) Distribution from your H.S.A.: Qualified medical ex...
by ThePrune
Sat Jun 24, 2017 7:11 pm
Forum: Investing - Theory, News & General
Topic: Investor Analysis of Index Annuities
Replies: 31
Views: 3535

Re: Investor Analysis of Index Annuities

Yet another update for the Fixed Index Annuity - Monte Carlo Modeler : This time I've added the capability to analyze two types of FIA-like Hybrid Annuities : Buffer Design and Floor Design . Such Hybrid Annuities are legally a type of Variable Annuity and must be registered and sold as securities. ...
by ThePrune
Wed Jun 21, 2017 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 1192

Re: 20 pct bonus on fixed index annuity

Stan Haithcock (AKA "Stan the Annuity Man") published the RetireMentors article Annuity up-front bonuses are not what they appear to be in Feb. 2016. If you've read this far in this posting stream, I think you'll find his entire article interesting. Here is just a bit: Annuity bonuses are ...
by ThePrune
Mon Jun 19, 2017 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Suggestions for my mother's annuities
Replies: 5
Views: 687

Re: Suggestions for my mother's annuities

Besides the tax situation two other concerns that I have are: Her getting another call from a "friend at the bank" life insurance agent insinuating that she needs to cash in these annuities and purchase some new high cost/commission product. Because of your mother's advanced age (you said...
by ThePrune
Sun Jun 18, 2017 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Suggestions for my mother's annuities
Replies: 5
Views: 687

Re: Suggestions for my mother's annuities

My concern is that these annuities have already built up $77K in untaxed income and may trigger an excessive tax bill if my mother dies. Since one of your questions has to do with death benefits, do you have and understand the details of who are listed in the two contracts as primary and contingent...
by ThePrune
Sat Jun 17, 2017 9:08 pm
Forum: Investing - Theory, News & General
Topic: Investor Analysis of Index Annuities
Replies: 31
Views: 3535

Re: Investor Analysis of Index Annuities

I've finished updating the Excel-based, Fixed Index Annuity - Monte Carlo modeler with stock index returns through April 2017. This modeler allows investment returns simulation for FIA contracts using any of the following price indexes: S&P Composite (1926+) - Robert Shiller's data S&P 500 (...
by ThePrune
Fri Jun 09, 2017 4:58 am
Forum: Personal Finance (Not Investing)
Topic: When is Municipal Bond Interest NOT "Tax-free"...
Replies: 15
Views: 1435

When is Municipal Bond Interest NOT "Tax-free"...

... potentially when that municipal bond interest is being received by retirees who are also receiving Social Security benefits. Retirees receiving Social Security benefits need to carefully evaluate recommendations to purchase municipal bonds/funds because of their, "tax-free income". A r...
by ThePrune
Fri Jun 09, 2017 2:09 am
Forum: Personal Finance (Not Investing)
Topic: social security spousal benefit denied
Replies: 8
Views: 2606

Re: social security spousal benefit denied

Social security denied my request for a spousal benefit based on my wife's benefits because I had previously received a reduced benefit (now suspended) when I was below full retirement age. I am now 66, my full retirement age. They say that even though I have suspended my benefits I have already re...
by ThePrune
Fri Jun 02, 2017 4:27 pm
Forum: Personal Consumer Issues
Topic: Book - The New Retirementality
Replies: 26
Views: 3474

Re: Book - The New Retirementality

I've read this book repeatedly over the "editions" (now the 4th). This is my favorite book to recommend to folks wanting to think more deeply about the non-financial aspects of retirement.
by ThePrune
Tue May 30, 2017 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: ? help on taking ss at 62
Replies: 15
Views: 1563

Re: ? help on taking ss at 62

Here are some generally accepted statements about Social Security claiming decisions: (1) The decision of when to start SS benefits should be made as part of a comprehensive retirement income plan, not in isolation of other aspects of your plan. Have you created a comprehensive plan? What does it in...
by ThePrune
Sun May 21, 2017 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Using guaranteed yield in life insurance policy
Replies: 9
Views: 944

Re: Using guaranteed yield in life insurance policy

People on the forum are sometimes a little to quick to dismiss permanent life insurance. Because your policy was purchased so long ago you appear to have a very high legacy cash balance interest rate - which could be quite valuable. I suggest you ask your insurance agent for an in force illustration...
by ThePrune
Sun May 14, 2017 5:09 am
Forum: Personal Consumer Issues
Topic: The recent WannaCry ransomware
Replies: 60
Views: 7012

Re: The recent WannaCry ransomware

The best way to protect yourself against ransomware, etc. is to have an offline backup of your system. As in, an external hard drive with your backups, that is unplugged from your system after the backup has completed. +1 I've been doing this for years. It really works. About 4 years ago my wife cl...
by ThePrune
Sun May 14, 2017 4:58 am
Forum: Personal Finance (Not Investing)
Topic: Regret early retirement/downsizing
Replies: 230
Views: 37741

Re: Regret early retirement/downsizing

I retired 10 years ago at age 53. Never regretted it! That said, it is extremely important for any retiree (regardless of age) to have a definite plan for "Meaningful Activity" in their new life. Vacationing, golfing and the like do not count as meaningful. For me, I started out as a half ...
by ThePrune
Thu May 11, 2017 9:34 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 37
Views: 3363

Re: How I use I-ORP, and who shouldn't

Withdrawal Strategies — I suspected the usual default of most of the planners was not optimum for us. Most planners are static in emptying first taxable accounts, followed by 401K and IRA, and leaving ROTH accounts to the end of plan. This is the "default" only for the uneducated planners...
by ThePrune
Fri Apr 21, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: The Value of Debt in Retirement
Replies: 16
Views: 1448

Re: The Value of Debt in Retirement

Intriguing, but wouldn't work in my case since almost all my wealth is in Qualified Plans, trad. IRAs or Roth IRAs. Once any of these is used as collateral, "legally" the IRS considers you to have withdrawn the funds from the accounts and owe to all applicable taxes.
by ThePrune
Tue Apr 18, 2017 6:26 am
Forum: Investing - Help with Personal Investments
Topic: Leaving Edward Jones...where to start?
Replies: 4
Views: 713

Re: Leaving Edward Jones...where to start?

As a former EJ client who transferred all family accounts to Vanguard, there is one further detail that applied to me and might apply to you as well. Besides the account closure fees (unavoidable) EJ also charges annual account fees. But these annual account fees are waived if you have enough invest...
by ThePrune
Thu Apr 13, 2017 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Most sophisticated tax software?
Replies: 6
Views: 716

Re: Most sophisticated tax software?

Although I've not used it personally, many retirement planners I respect like to use BNA Income Tax Planner. You might want to Google it's website and read about its capabilities.
by ThePrune
Sat Apr 08, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: Looking for a source to analyze Fixed Index/Equity Indexed Annuities
Replies: 18
Views: 1201

Re: Looking for a source to analyze Fixed Index/Equity Indexed Annuities

Therefore, what I am looking for specifically if anyone knows of a resource to analyze his annuities and provide and informed analysis. There are companies that supply such an analysis for whole life insurance policies and for variable annuities, but I've found none that perform independent analyse...
by ThePrune
Thu Apr 06, 2017 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuity
Replies: 14
Views: 1361

Re: Fixed Indexed Annuity

One of them is Fidelity and Guaranty Life Safe Income and the other one is Nationwide New Heights 9 fixed indexed annuity. I've performed detailed simulations of FIAs from both Fidelity and Guaranty and from Nationwide, but it's been a few years for both. Neither was as good as (odds were very high...
by ThePrune
Thu Apr 06, 2017 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Indexed Annuity
Replies: 14
Views: 1361

Re: Fixed Indexed Annuity

First, lets be clear why the insurance agent is recommending fixed index annuities to your boyfriend. The agent will earn between 6% - 8% of the dollar amount invested if they can sell an index annuity, but only 2%-3% if they sell a more typical annuity. Since insurance agents have no legal obligati...
by ThePrune
Wed Apr 05, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Income Annuity Question
Replies: 2
Views: 405

Re: Deferred Income Annuity Question

I'm not sure from your posting if you are entirely clear about what you are seeking to learn. But that's fine! Often you have to do some poking around with financial stuff to even begin to learn what you should actually be asking. Lets get things started with a pension annuity comparison by answerin...
by ThePrune
Tue Apr 04, 2017 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefit
Replies: 10
Views: 1299

Re: Social Security Spousal Benefit

I am wondering if there may be a surprise of some kind that I am overlooking. For example, she works part time and will earn about $25,000 in 2017. Anytime you deal with changes in Social Security benefits it is worthwhile to run a trial calculation of your federal taxes owed. In some cases the mar...
by ThePrune
Tue Apr 04, 2017 7:35 am
Forum: Personal Finance (Not Investing)
Topic: withdrawal of Roth conversions made before 5 years ago vs. after
Replies: 5
Views: 768

Re: withdrawal of Roth conversions made before 5 years ago vs. after

Refer to the IRS form 8606 Instructions! The section that covers line 22 has the information you seem to be asking about.
by ThePrune
Sun Apr 02, 2017 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning Today Course
Replies: 16
Views: 1632

Re: Retirement Planning Today Course

I have both good and bad to say about this class that I took about 2 years ago. First, it was developed and is marketed as a business development tool for registered Investment Advisor Representatives (IARs). As of about 2 years ago they paid about $4,000 for the exclusive rights to a "market r...
by ThePrune
Sat Apr 01, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: Why do REITs have high growth if housing only keeps up with inflation?
Replies: 19
Views: 1946

Re: Why do REITs have high growth if housing only keeps up with inflation?

The real estate that only keeps up with inflation is personally owned homes. Unlike commercial property, it doesn't generate any ongoing rental/lease income to give a bump to returns. I've seen plots that separate out REIT index fund returns into a capital appreciation component (which would also ap...
by ThePrune
Wed Mar 29, 2017 4:05 am
Forum: Investing - Theory, News & General
Topic: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?
Replies: 21
Views: 1345

Re: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?

How do you calculate the post-tax value for the taxable account though? I suppose if you are using average cost-basis this would be reasonable, but anything else would be a real pain to keep track of, no? Great question, since I didn't address this. As a pre-RMD retiree the only funds now left in m...
by ThePrune
Tue Mar 28, 2017 8:46 pm
Forum: Investing - Theory, News & General
Topic: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?
Replies: 21
Views: 1345

Re: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?

Sorry for the delay in answering your question. I perform all the calculations using an Excel spreadsheet which I custom developed for this purpose. If you have some spreadsheet design experience, the following description should be enough to guide you through. (1st) decide on the asset classes and ...
by ThePrune
Mon Mar 27, 2017 4:46 pm
Forum: Investing - Theory, News & General
Topic: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?
Replies: 21
Views: 1345

Re: Should Implementation Of Asset Allocation Targets Account For Taxation At Withdrawal?

Although I keep track of my AA both ways, my working rebalance bands are based on my effective, after-tax account values.
by ThePrune
Mon Mar 27, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 159
Views: 21773

Re: Illusion of poverty/wealth

Another interesting Behavioral Finance article by the team at UCLA Anderson school.
by ThePrune
Mon Mar 27, 2017 2:54 pm
Forum: Investing - Theory, News & General
Topic: Annuity to defer interest income
Replies: 11
Views: 1042

Re: SPIA to defer interest income

Good question. I mean a product for which you make a single purchase and get a single payment an intermediate time in the future such as 5-10 years. I thought this could be considered both a single premium intermediate annuity (SPIA) or a deferred annuity but I may be confused, having never bought ...
by ThePrune
Sat Mar 18, 2017 5:21 am
Forum: Personal Finance (Not Investing)
Topic: Using the Fidelity Rewards Visa in Europe?
Replies: 20
Views: 2062

Re: Using the Fidelity Rewards Visa in Europe?

I used my Fidelity card in France, Germany and Czech Republic last Sept. without problems. The card shows up as a "chip and signature" card, so merchant has you sign rather than enter pin. For getting cash at bank ATMs, I did have to enter the card's PIN, so make sure you have that memoriz...

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