Search found 17389 matches

by delamer
Thu Mar 28, 2024 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Long term care package?
Replies: 16
Views: 963

Re: Long term care package?

Being able go continue health insurance in retirement — in a good plan at a reasonable price — but before Medicare is a benefit that is available to very few retirees. tIRA withdrawals to meet ACA eligibility ? I don’t understand your question. You said few retirees before Medicare kicks in can find good, inexpensive insurance. I'm wondering why ACA does not fit that bill for those who can meet eligibility with IRA withdrawals. It is possible that in some cases the ACA can. The federal government subsidizes the FEHB premiums for retirees to an extent that I haven’t seen from what posters here have quoted from the ACA. (But that’s anecdotal.) And the FEHB subsidy is available regardless of income; there have been numerous threads here from ...
by delamer
Thu Mar 28, 2024 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Long term care package?
Replies: 16
Views: 963

Re: Long term care package?

EricGold wrote: Thu Mar 28, 2024 10:58 am
delamer wrote: Thu Mar 28, 2024 10:47 am Being able go continue health insurance in retirement — in a good plan at a reasonable price — but before Medicare is a benefit that is available to very few retirees.
tIRA withdrawals to meet ACA eligibility ?
I don’t understand your question.
by delamer
Thu Mar 28, 2024 11:00 am
Forum: Investing - Theory, News & General
Topic: Cash accumulator pathology
Replies: 38
Views: 2593

Re: Significant additional Cash Reserves. If you have/had any how have/will you deploy it?

Larger cash reserves means that a higher percent the rest of your portfolio can to allocated toward stocks.

No need to mess with intermediate or long-term bonds.
by delamer
Thu Mar 28, 2024 10:58 am
Forum: Investing - Theory, News & General
Topic: Underspending Paradox
Replies: 33
Views: 3146

Re: Underspending Paradox

I created a VPW Retirement spreadsheet and it suggests we should be withdrawing over $15,800 per month. After reading the Decumulation Paradox paper and articles I'm wondering, Should we start the monthly withdrawals now (say $12,000) and just have fun (more vacations, gifting, charities, beer, ...) with it? I'm also in this boat (though I have kids, they'll be fine without an inheritance so it isn't a big consideration). But I don't generally believe reaching for ways to spend money is fun. I do work a bit on being more willing to spend on things I believe will make me happier, but spending just to spend doesn't have any appeal. Spending on experiences (nice trips) does strike me as a good choice, but each to their own. Right. No one shou...
by delamer
Thu Mar 28, 2024 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Long term care package?
Replies: 16
Views: 963

Re: Long term care package?

I’m a FERS retiree. As long as you’ve been covered by FEHB for your last 5 years of employment, you can continue in FEHB. And the same cost as when you were working (minus the ability to pay with pre-tax dollars). [/quote] Thank you. So the out of pocket cost for insurance will be the same as while working even though salary will be 30% of previous income if retired at 30 years for the sake of simple math? What is the math on 1.1? Is it 1.1 multiple by total number of years if retired with more than 20 years or is it pro-rate such as 1% for certain amount and then 1.1? How much is FERS annuity supplement until SS kicks in? Is this a percentage amount per a formula and not a fix amount? Does this stop at 62 or stops when one elects to draw ...
by delamer
Thu Mar 28, 2024 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Long term care package?
Replies: 16
Views: 963

Re: Long term care package?

There is a columnist at the Government Executive website named Tammy Flanagan who is an expert of federal government benefits. You’ll find a lot of your questions answered there: posting.php?mode=reply&t=428284
by delamer
Wed Mar 27, 2024 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Long term care package?
Replies: 16
Views: 963

Re: Long term care package?

Lots of questions and I won’t try to cover them all. But here’s information on long-term care: https://www.nia.nih.gov/health/long-term-care/what-long-term-care Medicare, which is health insurance not long-term care insurance, isn’t available until you are 65. Most people have a supplement policy because Medicare is pretty bare bones. If you stop working and lose your employer-based health insurance before age 65, you can buy health insurance through the marketplace established by the Affordable Care Act (commonly known as Obama Care): https://www.hhs.gov/healthcare/index.html i believe Medicare only covers care within the US. Thank you. I am very green on this. What do people do when they retire at 57.5 from federal service? I keep hearin...
by delamer
Wed Mar 27, 2024 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Father Has Passed; Do we need an Appraisal?
Replies: 25
Views: 2707

Re: Father Has Passed; Do we need an Appraisal?

invsav wrote: Tue Mar 26, 2024 9:35 am I believe once the house is placed in the "B" trust there will be no step up basis to kids once your mom passes. Any appreciation since dad died will be taxed. please double check.
That was my experience regarding the lack of step-up. A definite downside of that estate planning tool.
by delamer
Wed Mar 27, 2024 3:29 pm
Forum: Investing - Theory, News & General
Topic: Underspending Paradox
Replies: 33
Views: 3146

Re: Underspending Paradox

Yes, you should. Just don’t overdo the beer. :happy

Seriously, we are very much the same position except we do have adult children and one grandchild.

We bought a new luxury EV and have taken a few expensive vacations, including flying business class overseas. And we are gifting to our kids. Do what you enjoy, and pay for comfort and convenience.

If not now, when?
by delamer
Wed Mar 27, 2024 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Checking account: why?
Replies: 21
Views: 1313

Re: Checking account: why?

jebmke wrote: Wed Mar 27, 2024 1:24 pm
gunny2 wrote: Wed Mar 27, 2024 1:10 pm With many banks now offering unlimited withdrawals from savings accounts, is there any point for most people, esp with checks having become mostly obsolete?
I'm not sure I agree with your premise but if someone doesn't need a checking account, don't have one
Yep. I mean, don’t buy a garage door opener if you don’t have a garage.
by delamer
Wed Mar 27, 2024 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Long term care package?
Replies: 16
Views: 963

Re: Long term care package?

Lots of questions and I won’t try to cover them all. But here’s information on long-term care: https://www.nia.nih.gov/health/long-ter ... -term-care

Medicare, which is health insurance not long-term care insurance, isn’t available until you are 65. Most people have a supplement policy because Medicare is pretty bare bones.

If you stop working and lose your employer-based health insurance before age 65, you can buy health insurance through the marketplace established by the Affordable Care Act (commonly known as Obama Care): https://www.hhs.gov/healthcare/index.html

i believe Medicare only covers care within the US.
by delamer
Mon Mar 25, 2024 9:47 pm
Forum: Personal Investments
Topic: Need advice
Replies: 9
Views: 952

Re: Need advice

I don’t know the ins & outs of student loans.

But is there any advantage in trying to pay down the loan faster rather than investing to cover taxes on the forgiveness in 10 years? Or doing some of both?

Your education has served you well in that you figured out the advisor’s game. Whatever you decide, run away from her as fast as possible.

As niagara_guy said, with a dead certain due date in 10 years there is still some risk in investing stocks due to their volatility. Maybe some stocks early on (like 25%), but you want to decrease that gradually.

Good luck.
by delamer
Mon Mar 25, 2024 4:36 pm
Forum: Investing - Theory, News & General
Topic: Is there any difference between cashing out a Mutual fund in/out of an IRA - if you are retired already?
Replies: 13
Views: 1451

Re: Is there any difference between cashing out a Mutual fund in/out of an IRA - if you are retired already?

Do you understand how tax brackets work? You pay a higher percentage in taxes as your annual income increases, but the increase is step-wise not gradually linear. For example, for a couple filing married/joint, up to a combined income of about $125,000, they are in the 12% tax bracket. From an income of $125,000 to about $210,000, they are in the 22% tax bracket. Above that is a 24% bracket and then higher brackets. If you take the money out from your IRA a bit at a time each year, you might be able to do it without going into the next higher tax bracket. If you take all the money out at once, you may put yourself in a higher tax bracket and pay a higher percentage in taxes than you would if you just take out a bit each year. I hope that m...
by delamer
Mon Mar 25, 2024 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Does It Ever Make Sense For FEHB Enrollees To Drop Part B?
Replies: 24
Views: 1494

Re: Does It Ever Make Sense For FEHB Enrollees To Drop Part B?

Maybe one thing many would agree on is the opinion that those on Part A and Part B should pay less for the FEHB premiums since FEHB pays as secondary insurance only about 20% of the cost. I don't think annuitants should be paying the same as the employee rate. Some might say that the annuitants cost more as an older group. However, the same holds true for those on public Medicare Advantage plans, but who mostly have a zero plan premium. And, their out of pocket yearly max is, from what I have seen, also lower than many of the FEHB plans. It really doesn’t matter what anyone here thinks regarding whether annuitants with Medicare A&B should pay less for FEHB. And it isn’t actionable within the forum rules. We have to make decisions withi...
by delamer
Mon Mar 25, 2024 2:32 pm
Forum: Personal Investments
Topic: Retired but low income
Replies: 11
Views: 2528

Re: Retired but low income

I don't think you need a plan--that sounds like you are waiting for just the right moment--a right moment that may or may not ever arrive. All you reallly need to do is take your money and buy a low cost stock market and bond market index fund with it. The Boglehead wiki will steer your right there. The only thing that the Boglehead wiki can't really decide for you is your risk tolerance. Are you the kind of person that can sleep at night if the stock market had a bad day or month or year? Maybe. Maybe not. If you don't know the answer to that, start very conservatively and then adjust the ratios as you gain confidence. Maybe 10% or 20% in a stock market index fund and the rest in a bond market index fund for a year or two until you feel c...
by delamer
Mon Mar 25, 2024 2:12 pm
Forum: Personal Consumer Issues
Topic: Need information on clothes dryer lint screen
Replies: 18
Views: 996

Re: Need information on clothes dryer lint scree

We have a Maytag dryer that catches a lot of lint in the screen. It’s about 4 years old and it’s a bit overengineered in that it connects to wifi (a feature that we don’t use).

Full disclosure — the washer that we bought it with as a pair stopped working after about 18 months and the technicians couldn’t repair it.

But the dryer is fine. The screen pops out and in easily.
by delamer
Mon Mar 25, 2024 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Does It Ever Make Sense For FEHB Enrollees To Drop Part B?
Replies: 24
Views: 1494

Re: Does It Ever Make Sense For FEHB Enrollees To Drop Part B?

If taking Part B you may also want to consider the added bureaucracy of getting claims processed. If the healthcare provider has issues getting documents processed with Medicare and then getting the denials back to the FEHB insurer you will need to intercede and work the issue with all three parties. I am 7 mos into such a situation and still working on it. :oops: I believe all providers are required by law to first submit the claim to Medicare if 65 or older whether the person has it or not so that could be part of the issue? I don’t think that’s accurate. I don’t have Part B and I’ve never had a provider submit to Medicare first. The providers don’t even a Medicare account number for me. delamer---Thanks for catching this. You are correc...
by delamer
Mon Mar 25, 2024 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Would you do a house upgrade?
Replies: 49
Views: 3554

Re: Would you do a house upgrade?

What is a parade home?
by delamer
Mon Mar 25, 2024 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does It Ever Make Sense For FEHB Enrollees To Drop Part B?
Replies: 24
Views: 1494

Re: Does It Ever Make Sense For FEHB Enrollees To Drop Part B?

tallguy3891 wrote: Mon Mar 25, 2024 11:04 am
Ricola wrote: Mon Mar 25, 2024 10:54 am If taking Part B you may also want to consider the added bureaucracy of getting claims processed. If the healthcare provider has issues getting documents processed with Medicare and then getting the denials back to the FEHB insurer you will need to intercede and work the issue with all three parties. I am 7 mos into such a situation and still working on it. :oops:
I believe all providers are required by law to first submit the claim to Medicare if 65 or older whether the person has it or not so that could be part of the issue?
I don’t think that’s accurate.

I don’t have Part B and I’ve never had a provider submit to Medicare first. The providers don’t even a Medicare account number for me.
by delamer
Mon Mar 25, 2024 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Does It Ever Make Sense For FEHB Enrollees To Drop Part B?
Replies: 24
Views: 1494

Re: Does It Ever Make Sense For FEHB Enrollees To Drop Part B?

MnD wrote: Sun Mar 24, 2024 9:44 pm Many retired federal employees just continue their FEHB coverage and never enroll in Medicare part B.
It's very good comprehensive insurance with many choices in policies and you can switch every year as needs change.

You could easily turn that question around and ask - "does it ever make sense to enroll in Part B if you have access to FEHB?"

I have three more years to decide and am definitely on the fence about enrolling in part B. Currently leaning towards not enrolling.
I agree with turning the question around.

Life is unpredictable, but on average the older we get the more medical care that we need.

The better bet could be to skip Part B in earlier retirement and add it in later retirement if the need arises.
by delamer
Mon Mar 25, 2024 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Approaching parents about removing oneself from their estate
Replies: 35
Views: 3913

Re: Approaching parents about removing oneself from their estate

You can’t know what your person financial situation will be at the death of your second parent. People become disabled, have a child or grandchild who needs significant assistance, have extended periods of unemployment, etc.

Your other siblings might be resentful if you voluntarily give up your share of the estate to help your sister. It could put them in an awkward position if they can’t afford to be as generous.

It’s your parents’ choice. Leave it alone.
by delamer
Sun Mar 24, 2024 10:55 pm
Forum: Investing - Theory, News & General
Topic: Is there any difference between cashing out a Mutual fund in/out of an IRA - if you are retired already?
Replies: 13
Views: 1451

Re: Is there any difference between cashing out a Mutual fund in/out of an IRA - if you are retired already?

The benefit of keeping money in the IRA is tax-free growth continues.

Any money withdrawn from a (non-Roth) IRA is taxed as ordinary income.

If you sell an asset in a taxable account and you’ve held the asset for one year or more, then 1) you pay tax only on the difference between the sale price and the cost basis and 2) the tax rates are long-term capital gains rates.

If you sell an asset in a taxable account and you’ve held the asset for less than one year, you still only pay the difference between the sale price and the cost basis. But the tax rates are ordinary income rates.

Which account you should withdraw from if you need money to cover expenses will vary.
by delamer
Sun Mar 24, 2024 8:59 pm
Forum: Personal Investments
Topic: Inheritance Considerations for Son Living Abroad
Replies: 16
Views: 1362

Re: Inheritance Considerations for Son Living Abroad

should something happen to my DIL, her Filipino relatives would inherit the house i have no idea about filipino law, but could her will state that he can live in the house for the remainder of his life? also, why would his son (your grandson) not inherit the house? not the question you asked, but worth your son and daughter-in-law thinking about. Oh, our grandson would inherit the house, if he's no longer a minor. This is a "what if" should he not be of age to do so. I don't know about the Will in the Philippines, but our son would need to be a citizen to have any rights at all. It's concerning. I appreciate your concerns. But there may be a more immediate one. While your grandson or any future children are still minors, what rig...
by delamer
Sun Mar 24, 2024 8:50 pm
Forum: Personal Investments
Topic: Taxable account assets for pre-retirement
Replies: 8
Views: 914

Re: Taxable account assets for pre-retirement

Put several years of basic living expenses (excluding retirement contributions/savings) into cash equivalents to buffer for low-income years. Cash equivalents include short-term bonds, particularly federal government bonds.

Have you accounted for health insurance premiums when moving to freelance?
by delamer
Sun Mar 24, 2024 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3710

Re: Controling Assets From the Grave

... I was talking about leaving assets to my first/only husband who is my children’s father. I was wondering if it might be feasible to leave a portion, but not all, of my assets in trust for him (with our adult kids as final beneficiaries) so that if there is a second wife, she won’t have claim to the trust assets. So split his inheritance — a trust account for his benefit and the remainder to him directly. That makes it easier. He and your children can be the trustees of the trust for his benefit. Could you leave the IRA to him outright and the other assets in trust for him? The IRA is by far the largest asset. Can it be split between a trust and outright? Thank you. Yes, but the portion in trust will have to be distributed within 10 yea...
by delamer
Sun Mar 24, 2024 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3710

Re: Controling Assets From the Grave

bsteiner wrote: Sun Mar 24, 2024 6:40 pm
delamer wrote: Sun Mar 24, 2024 2:13 pm ... I was talking about leaving assets to my first/only husband who is my children’s father. I was wondering if it might be feasible to leave a portion, but not all, of my assets in trust for him (with our adult kids as final beneficiaries) so that if there is a second wife, she won’t have claim to the trust assets.

So split his inheritance — a trust account for his benefit and the remainder to him directly.
That makes it easier. He and your children can be the trustees of the trust for his benefit.

Could you leave the IRA to him outright and the other assets in trust for him?
The IRA is by far the largest asset. Can it be split between a trust and outright?

Thank you.
by delamer
Sun Mar 24, 2024 6:51 pm
Forum: Investing - Theory, News & General
Topic: 10% cash position excessive?
Replies: 27
Views: 2695

Re: 10% cash position excessive?

I’m looking to retire in 15 years (62). There are combo of retirement accounts and taxable. 10% in SNAXX at 5.3-5.4% My portfolio if 50% VTI the rest in XLK, QQQM and SCHG. Returns have been great. I don’t want to get into numbers but portfolio is currently high 7 digit and house paid off. SNAXX has a pretty high expense ratio (.19%) for a fund of its type. You could consider this one instead (.04%): https://investor.vanguard.com/investment-products/etfs/profile/vgsh I’m an advocate of using cash equivalents (including short-term bonds) rather than longer-term bonds in a portfolio. And going with a higher stock allocation as a corollary. So, for instance, instead of 60% stock with 40% longer-term bonds, using 75% stock with 25% cash equiva...
by delamer
Sun Mar 24, 2024 5:40 pm
Forum: Personal Investments
Topic: Retirement Contribution Questions
Replies: 11
Views: 1058

Re: Retirement Contribution Questions

You could redirect some of your $14,000 to a taxable brokerage account where you’d have unlimited choices/control.

But you’d lose the tax-deferral to the extent that you go with taxable.

At retirement I wish I’d had more savings in a taxable account. The RMDs for a tax-deferred account can create tax headaches when they start.
by delamer
Sun Mar 24, 2024 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4992

Re: Medicare: Getting Part A and D only

and as I noted above he has the optionality of six months retroactive Part B in his back pocket all along. Yes. I avoided mentioning this aspect because it felt too close to politics and an invitation for argument, but since it is mentioned I'll add that AFAIK Part B can be started and stopped without limit It does indeed seem that you can turn Part B on and off ad lib, but I was actually wrong about the 6 month retroactivity for Part B, as TallGuy subsequently pointed out. Still there are no pre-existing condition exclusions and as long as you have funds in HSA or elsewhere to cover the initial expenses, then Part B could kick in to cover long months of followup expenses. Assuming that you don’t take Part B during your Initial Enrollment ...
by delamer
Sun Mar 24, 2024 3:24 pm
Forum: Personal Investments
Topic: rollover IRA assistance
Replies: 3
Views: 370

Re: rollover IRA assistance

A short-term Treasury fund that pays out monthly, like this one — https://investor.vanguard.com/investmen ... ofile/vgsh

It isn’t fixed rate though.
by delamer
Sun Mar 24, 2024 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity for spendthrift brother on mom's death?
Replies: 52
Views: 4183

Re: Annuity for spendthrift brother on mom's death?

This a really in-the-weeds question.

Can someone buy an annuity for a 3rd party without their cooperation (assuming the 3rd party is legally competent)?

Say, for example, I decided I wanted to buy an annuity for my adult child. Wouldn’t my child need to sign paperwork and otherwise assist in getting the annuity set up?
by delamer
Sun Mar 24, 2024 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: 12 months before retirement what do you wish you had done
Replies: 72
Views: 8871

Re: 12 months from retirement what do you wish you had done

OP, 12 months from Retirement I really ramped up my Retirement/Estate planning. Key components: - Retirement Goals - Estate Planning Goals - Forward looking Cashflow - Forward looking Tax Planning - Identified Key Decisions (Pension vs. LumpSum, SS Claiming, LTC etc) and timeline for making them - Shift in Portfolio design from Accumulation too Decumulation. - Revised Investment Policy Statement - Roth Conversion Plan WoodSpinner Moving from accumulation to decompilation is very difficult indeed. My cost actuals have come in lower than projected so I'm sort of just rolling forward with my plan. I know some BHers are proud they haven't touched their portfolio, not sure why or how, but a badge of honor for some. In our case, it isn’t so much...
by delamer
Sun Mar 24, 2024 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3710

Re: Controling Assets From the Grave

... Let’s say I had accounts worth $1 million at my death. Practically speaking, would it be feasible to give $500,000 directly to my spouse and put $500,000 in trust (with a HEMS clause) for my spouse with my adult kid(s) as trustees and the final beneficiaries? Does having the money largely in tax-advantaged retirement accounts change the options? Thanks for your expertise. It's feasible but suboptimal. HEMS and children from the first marriage as trustees for the second spouse is an invitation to litigation. Must the spouse use his/her income first? Must the spouse use his/her other assets first? Must the trustee pay for HEMS or are they merely allowed to? We're about to file suit in such a case. You could instead make the trust discret...
by delamer
Sun Mar 24, 2024 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3710

Re: Controling Assets From the Grave

The remarriage concern is a tough one. I’ve made a definite decision not to do so if I’m widowed, and inheritance issues are a big factor. But my husband would be a hot commodity if he’s the surviving spouse, because eligible, solvent elderly men are a rare find. :wink: I'm one of those, and I can report that we're not a hot commodity (but then again, I don't hang around with ladies 10+ years my senior, if that's what it takes). We are about to update our wills, so we need to figure this out. I’m wondering if leaving some assets outright to the spouse and putting some in trust is the best option? I'm not a lawyer, but as far as I know, the only assets that I can be certain will go to the intended beneficiaries are the assets that I leave t...
by delamer
Sun Mar 24, 2024 11:30 am
Forum: Personal Finance (Not Investing)
Topic: In-laws 529 for grandkids, bite my lip or say something?
Replies: 58
Views: 5913

Re: In-laws 529 for grandkids, bite my lip or say something?

trustquestioner wrote: Sat Mar 23, 2024 6:12 am My parents affirmatively asked me to look at their statements. Morgan Stanley advisor was ripping them off massively. I detailed the fees in every one of the terrible funds they were in. They then changed absolutely nothing.

Not worth it.
Both my parents-in-law and siblings-in-law have asked my advice on financial matters within the last year. They never actually follow through with anything though.

Very frustrating, especially since these aren’t actions where they have to break up with an advisor. It’s stuff they can do online or with a neutral third party.
by delamer
Sun Mar 24, 2024 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3710

Re: Controling Assets From the Grave

... what happens with a remarriage can be a tough one. If I am first to go, I would not have an objection to all assets being used to support my spouse in another marriage (if there was one - your solution of just not getting remarried may work, doesn't prevent a new partner coming into the picture - but life is funny, we can't fully predict what happens). But, once that remarriage is done I would not want those assets to go to the new spouse's kids, I would want any remaining assets to go to my kids. I guess that raises the question of what if the surviving spouse pre-deceases the new marital partner, do the assets continue to support that partner? I guess so. I think your solution of leaving some, and putting some in trust may be workabl...
by delamer
Sun Mar 24, 2024 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3710

Re: Controling Assets From the Grave

The remarriage concern is a tough one. I’ve made a definite decision not to do so if I’m widowed, and inheritance issues are a big factor. But my husband would be a hot commodity if he’s the surviving spouse, because eligible, solvent elderly men are a rare find. :wink: I’m leaving my inheritance acccount directly to our adult children if I’m the first to die. Definitely don’t want my parents’ money to end up supporting a second wife. But my husband will be financially quite secure without that money; that isn’t always the case. As to our assets accumulated during our marriage — retirement accounts and home equity — I haven’t seen an uncomplicated solution that strikes the right balance between giving the surviving spouse control and prote...
by delamer
Sat Mar 23, 2024 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3710

Re: Controling Assets From the Grave

Personally, I have been mulling this issue over, as it is a big concern- making sure our own kids benefit from our assets, not some random potential future spouse’s kids, if one of us might remarry after the first dies…. Couple thoughts I have had- one of the trust options, mainly to provide financial means to cover long term care needs that may exceed the income available. Either of us should still have both pensions still, plus their own SS, and that should be plenty for regular needs, so the assets are more for unusual needs. Option 2- leave my financial assets half to the spouse, and half to the kids- so no matter what, our kids still got some benefit. Still leaves the possibility that they end up with nothing from my spouse if she doe...
by delamer
Sat Mar 23, 2024 4:06 pm
Forum: Personal Investments
Topic: Inheritance Considerations for Son Living Abroad
Replies: 16
Views: 1362

Re: Inheritance Considerations for Son Living Abroad

should something happen to my DIL, her Filipino relatives would inherit the house i have no idea about filipino law, but could her will state that he can live in the house for the remainder of his life? also, why would his son (your grandson) not inherit the house? not the question you asked, but worth your son and daughter-in-law thinking about. Oh, our grandson would inherit the house, if he's no longer a minor. This is a "what if" should he not be of age to do so. I don't know about the Will in the Philippines, but our son would need to be a citizen to have any rights at all. It's concerning. I appreciate your concerns. But there may be a more immediate one. While your grandson or any future children are still minors, what rig...
by delamer
Sat Mar 23, 2024 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3710

Re: Controling Assets From the Grave

Could consider dividing the assets at time of first spouse’s death. For example, leave to the living spouse $60k times the difference between spouse’s age and 100 (I.e., $60/year) and then the remainder goes to the family of deceased spouse. The $60k/year is just an example and could be $200k/year or $30k/year, etc. Then the surviving spouse knows exactly how much they will be getting and nothing will be between them and the money. It would also synchronize the inheritance to family with the death of the family member. The number could be updated in the future or could include a specific calculation for inflation between the date of the will and date of death. I had a family member who left money in trust for their life partner with the re...
by delamer
Sat Mar 23, 2024 3:30 pm
Forum: Personal Investments
Topic: Some reasons to help me avoid the US/exUS debate
Replies: 44
Views: 3278

Re: Some reasons to help me avoid the US/exUS debate

The most important reason to stop your internal debate — you’ve made a decision, now stay the course.

The best way to turn a portfolio from “good enough” performance to “poor” performance is to market time based on recent performance (up or down).
by delamer
Sat Mar 23, 2024 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: HCOL in retirement - mortgage vs. paid off vs. rent?
Replies: 25
Views: 2075

Re: HCOL in retirement - mortgage vs. paid off vs. rent?

Admiral Fun wrote: Sat Mar 23, 2024 12:27 pm Super helpful thoughts everyone. I guess it is not surprising that there is no clearcut answer.

I'm surprised that more people are not in the "retired people should own" camp.

Any views about the asset allocation question -- should it differ depending on the amount of debt, amount locked up in home equity, etc.?
I haven’t given any thought to whether asset allocation should vary for renters vs. homeowners. You mentioned possibly more bonds if you are renting. What’s your thought there?

I do think how much of your expenses are covered by annuitized income (Social Security & pension) should be considered.
by delamer
Sat Mar 23, 2024 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: At what age to tell child about family's finances
Replies: 74
Views: 6110

Re: At what age to tell child about family's finances

When you decide to have your kids start to take over your portfolio as your age prevents you from being able to do it. I did that at my parents request when I was about 50. I didn't make many changes in their portfolio or finances. Even with hindsight, I would probably do the same [despite the pain in transferring, retitling and selling their individual stock certificates]. My dad started letting me know their situation when he was 70 and I was 45. My mom had no interest and I am the oldest. He brought me in more and more the next 10 years, consulting when he had ideas on changing their investments. Fast forward to 80. He was having trouble making any semi-complex tax or investment decisions and I did a bunch of transactions for him in his...
by delamer
Sat Mar 23, 2024 9:30 am
Forum: Personal Finance (Not Investing)
Topic: HCOL in retirement - mortgage vs. paid off vs. rent?
Replies: 25
Views: 2075

Re: HCOL in retirement - mortgage vs. paid off vs. rent?

I would do two things: One, I would probably rent something for a year or two to see how things work out. It might turn out not to be where I want to be long term. Two, I'd evaluate the mortgage question based on my finances at the time, housing prices and mortgage rates then available. We ended up paying cash for our house but that was because we could. We did rent for about a year but in retrospect I would have done it longer to get a better lay of the land. We like where we are but it may not have been our choice with more info. Good advice. The hassle of moving twice is nothing compared to the anxiety of ending up with an expensive house that doesn’t meet your needs. Also, Option 2 could be a tax nightmare depending on where your liqui...
by delamer
Sat Mar 23, 2024 9:22 am
Forum: Personal Finance (Not Investing)
Topic: 12 months before retirement what do you wish you had done
Replies: 72
Views: 8871

Re: 12 months from retirement what do you wish you had done

My last full year I don't plan to take any leave, so I'll get a lump some payment for 396 hours. I’ve thought about hoarding my leave my last year but decided I’d rather start taking nice vacations the last couple years before retirement. I figure I could get the equivalent of the leave payout by working two more months. I thought that was a small price to pay for starting retirement vacations a couple years earlier. Of course that assumes I get to choose my retirement date. :) I retired 4 years before my husband. He resisted taking any long (2+ weeks) vacations during that time. He wanted to wait until he was retired. But I insisted, and we got in a couple nice trips including a memorable Baltic Sea cruise with two days in St. Petersburg....
by delamer
Sat Mar 23, 2024 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 62
Views: 5096

Re: Parents building a new house - how should they pay for it?

mikejuss wrote: Sat Mar 23, 2024 9:05 am
delamer wrote: Sat Mar 23, 2024 9:01 am In any case, hopefully the OP’s parents will get a realistic estimate from their builder.
My own advice to the OP is to double the estimated time frame and cost, so as not to be surprised.
Cost; really? A $400,000 house could end up costing $800,000?

I can see adding 15% or 20% to both time and money if you are being cautious.
by delamer
Sat Mar 23, 2024 9:14 am
Forum: Personal Finance (Not Investing)
Topic: At what age to tell child about family's finances
Replies: 74
Views: 6110

Re: At what age to tell child about family's finances

My Dad was an estate attorney and he told any number of nightmares about parents who didn't share accurate and up to date financial information with heirs. Lost assets, theft and fraud by advisors, caregivers, or strangers etc. Long searches for assets that didn't exist or were disposed of decades ago. Completely inappropriate mismanaged investments. Kids who thought their parents had lots of assets and planned accordingly (assumed they could age in place and hire anything they needed) when in fact they had nothing. And vice-versa. A lot of people who wouldn't share information with kids did also not share information with spouses will all kinds of similiar disasters. He thought it was a power/control disorder. Very interesting post. I can...
by delamer
Sat Mar 23, 2024 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 62
Views: 5096

Re: Parents building a new house - how should they pay for it?

1) It's already been said, but should they really be buying a home at 78 and 80 years old? Renting seems like a great option if home inventory is non-existent. The cost of new construction is very high right now; $450-500K will get you a very modest home. Buying an existing home, even with serious renovations, would be more cost effective. Aren't the parents wanting to build a new house, and won't that take a couple of years, meaning that they'll move in when they're both over 80? And don't new-build houses have a lot of problems initially, meaning that the parents will likely be fine-tuning the house for a few more years? And will they even want to live in the house by the time they both reach their mid-80s? Circumstances vary, but our ne...
by delamer
Sat Mar 23, 2024 8:58 am
Forum: Investing - Theory, News & General
Topic: It is really that simple to do it the Bogleheads way?
Replies: 87
Views: 8204

Re: It is really that simple to do it the Bogleheads way?

So is investing really as easy as buying and holding some recommended index funds? (I have a three-fund portfolio in mind) The projected returns are 8-9% PA, which is better than what my FA gives me, and does not seem unreasonable given Vanguard's performance. It's easy when VTI returns more than what your FA suggests. It's harder when you hear about someone getting massive returns from NVDA, ARKK or whatever the flavor of the day is. You have to accept and live with never having the exciting stock and maybe having people tell you that you are missing out and you WILL be. Missing out on the gains but also the losses (though you will only hear about one half of it from your friends and acquaintances) Very good points. And remember that the ...
by delamer
Sat Mar 23, 2024 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4992

Re: Medicare: Getting Part A and D only

skepticalobserver wrote: Sat Mar 23, 2024 6:15 am Nobody is immune from the vicissitudes of health. One day you may wake up with a pain on your side and you will not believe how much the diagnostics alone will cost. For the premium Part B is a gift.
Just thinking about Catherine, Princess of Wales. Young, fit, with access to excellent medical care, and all the financial resources imaginable. And a cancer diagnosis.