Search found 199 matches

by Dr. Gaius Baltar
Fri Apr 10, 2020 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?
Replies: 22
Views: 3734

Re: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?

You're ignoring that your greatest value in a mortgage is the optionality. If you refinance for a paltry monthly savings and have thousands of closing costs, and then interest rates drop again so that you would have more meaningful savings, you'll need a substantial drop in rates to justify it. What's your payback period on closing costs vs monthly savings? I'm guessing it's over 10 years, which is way too long. Don't refinance now. Wait for rates to drop further (they probably will) because you may only get one chance to refi that justifies the closing costs and you don't want to waste it. 44 months to breakeven on monthly payment savings, 48 months on total savings after taxes. If you want to run the numbers yourself, here 's the site, a...
by Dr. Gaius Baltar
Fri Apr 10, 2020 9:24 am
Forum: Personal Finance (Not Investing)
Topic: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?
Replies: 22
Views: 3734

Re: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?

Sandi_k wrote: Thu Apr 09, 2020 7:53 pm Try Penfed - they are showing 3.125% for 30 year loans.

https://www.penfed.org/mortgage-center/mortgages
Here is the correct link for interest rates on refinance mortgages. Rates are higher for refis.
https://www.penfed.org/mortgage-center/ ... -refinance
petulant wrote: Thu Apr 09, 2020 7:39 pm Why are you spending so much time on $40 per month? It might be a tangible benefit, but this seems like it's hardly a material benefit.
Because if it turns out that 3.125% fixed for 30 years with close to 0 points is as low as rates on refis ever go, then I prefer to be at that rather than at 3.375%.
by Dr. Gaius Baltar
Thu Apr 09, 2020 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?
Replies: 22
Views: 3734

Re: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?

JGoneRiding wrote: Thu Apr 09, 2020 6:27 pm
Mine was yes. And without her it NEVER would have closed with all the crap that happened. She has mentioned this. They cant just churn loans.
Is Angieslist a good place to find a good mortgage broker?
by Dr. Gaius Baltar
Thu Apr 09, 2020 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?
Replies: 22
Views: 3734

Re: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?

Big Dog wrote: Thu Apr 09, 2020 4:24 pm The last couple of refis that I have completed were thru a broker. Wouldn't hurt to call one or two local brokers or credit unions (or check mortgage professor online) and ask their rates for a no-cost refi and if they have any special requirements.
Have you found that your broker is able to get you better rates than you would be able to get directly?
by Dr. Gaius Baltar
Thu Apr 09, 2020 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?
Replies: 22
Views: 3734

Re: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?

Dottie57 wrote: Thu Apr 09, 2020 4:31 pm Are you getting an FHA loan. This is from FHA.COM I GOOGLED “Net Tangible Benefit” to find it .

https://www.fha.com/fha_article?id=356
No, it's not an FHA loan.
by Dr. Gaius Baltar
Thu Apr 09, 2020 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?
Replies: 22
Views: 3734

Re: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?

Big Dog wrote: Thu Apr 09, 2020 3:53 pm Any broker/bank/funder can have any rule that they like as long as they don't discriminate.

Have you tried different lenders/brokers?
He specifically said that it wasn't their rule though, it was a government rule.
I don't really know any other lenders that can do 3.125% with low/no points and low/no lender fees. I've never tried a mortgage broker, would they be able to get me a better deal?
by Dr. Gaius Baltar
Thu Apr 09, 2020 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?
Replies: 22
Views: 3734

Re: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?

fortfun wrote: Thu Apr 09, 2020 3:28 pm Have you tried Aimloan?
Aimloan's fees are considerably higher to get down to 3.125%. $995 lender fee and $1361 in points, compared to $175 lender fee and $500 or so in points with Crosscountry.
greg24 wrote: Thu Apr 09, 2020 3:37 pm Do you have an FHA loan?

This page seems relevant:
https://crosscountrymortgage.com/loan-t ... refinance/

You must demonstrate a Net Tangible Benefit from the FHA Streamline Refinance:
o Reducing the sum of the principal, interest and mortgage insurance
o Changing from an adjustable rate mortgage to a fixed rate mortgage
o Applying for a cash-out refinance to consolidate debt and pay other expenses
I don't have an FHA loan, and I'm not applying for one.
by Dr. Gaius Baltar
Thu Apr 09, 2020 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?
Replies: 22
Views: 3734

I was denied a mortgage refinance due to a "net tangible benefit rule". Is this a real thing?

I was just told by Crosscountry Mortgage (Costco mortgage program) that I can't refinance to 3.125% because there's a "net tangible benefit" rule that prevents it? Is this a real thing? Current Mortgage: Interest Rate: 3.375% Fixed/Adjustable: Fixed Term: 30 years FHA: No VA: No Loan amount: $310,000 Monthly payment: $1,371 Refinance I was applying for: Interest Rate: 3.125% Fixed/Adjustable: Fixed Term: 30 years FHA: No VA: No Points: 0.19 Cash Out: $1,700 to cover most of the closing costs Mortgage Balance: $307,500 Property Value: $512,500 Monthly payment: $1,329 The person at Crosscountry said that due to the Net Tangible Benefit Rule, the only way I could refinance to a new 30 year fixed is if the interest rate was dropping d...
by Dr. Gaius Baltar
Thu Apr 09, 2020 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1265354

Re: Refinance Mega Thread

I was just told by Crosscountry Mortgage (Costco mortgage program) that I can't refinance to 3.125% because there's a "net tangible benefit" rule that prevents it? Is this a real thing? I'm currently on a 30 year fixed conventional mortgage, 3.375%, not FHA or VA or anything like that. Last time I did a refi was in November. I was trying to do a refi to 3.125% with 0.19 points, and taking $1,700 cash out, to pay for most of the closing costs. Again, 30 year fixed, not FHA or VA. The person at Crosscountry said that due to the Net Tangible Benefit Rule, the only way I could refinance to a new 30 year fixed is if the interest rate was dropping down by half a point, so from 3.375% to 2.875%. I can't go from 3.375% to 3.125%. How can ...
by Dr. Gaius Baltar
Mon Mar 09, 2020 12:45 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1265354

Re: Refinance Mega Thread

Is it possible to get better rates / lower closing costs by going with a mortgage broker? The last two times I refinanced I went with Costco and Aimloan.

I'm at 3.375% 30 year fixed right now, 60% LTV.
by Dr. Gaius Baltar
Fri Dec 02, 2016 10:15 pm
Forum: Personal Investments
Topic: How difficult is the paperwork on a Vanguard Individual 401k?
Replies: 5
Views: 1337

Re: How difficult is the paperwork on a Vanguard Individual 401k?

@Earl Lemongrab:
I think I don't want to roll IRAs or Roth IRAs into an Individual 401k. You have a lot more choices in a regular IRA/Roth IRA, ETFs, admiral shares, no early withdrawal penalties, etc, so I'd just leave it in there. No 5500.

Which broker would you use for a Solo Roth 401k?

@saltycaper:
Thank you for the info on that, I got started filling out forms. Yeah, I've heard that the Fidelity Solo 401k is good too, but no Roth 401k is a deal killer to me.
by Dr. Gaius Baltar
Fri Dec 02, 2016 1:25 am
Forum: Personal Investments
Topic: How difficult is the paperwork on a Vanguard Individual 401k?
Replies: 5
Views: 1337

How difficult is the paperwork on a Vanguard Individual 401k?

I'm strongly considering opening a Vanguard Individual 401k. I have $900/month in self-employment income which I want to put in there, in a Roth account, otherwise it will stack up in a taxable Vanguard account. I'm already maxing out my Roth IRA contributions.

Ignoring the paperwork associated with having a balance of $250k+ in that account, which is probably a decade away at least, assuming my anticipated level of contributions, how onerous is the paperwork associated with having a Vanguard Individual 401k? I do my own taxes with Turbotax, so I'm not completely clueless. But I'd like to know if a Solo 401k is a paperwork nightmare or not before I call up Vanguard and open an account.
by Dr. Gaius Baltar
Wed Mar 19, 2014 11:15 am
Forum: Personal Consumer Issues
Topic: Are Rheem gas water heaters good quality?
Replies: 16
Views: 63999

Re: Are Rheem gas water heaters good quality?

Let me clarify that $1,300 is the cost to replace the clothes washer and dryer if it's destroyed in some sort of flood. It seems that your price to install a gas water heater is a lot cheaper than mine. Home Depot quoted me $1,980 for a 12-year warrantied base model Rheem, plus drain pan, plus upgrades to bring it up to the new code which includes new gas valve, new grills to increase combustible air supply, and an expansion tank. The next plumbing company said about $1550 and they use State water heaters. The next company said about $1,600 for everything, using a State or Ruud water heater, with a 10 year warranty. The one that I'm considering now said $1,415 for everything, AO Smith water heater, 6 year warranty but they're authorized to ...
by Dr. Gaius Baltar
Wed Mar 19, 2014 10:40 am
Forum: Personal Consumer Issues
Topic: Are Rheem gas water heaters good quality?
Replies: 16
Views: 63999

Re: Are Rheem gas water heaters good quality?

I've been getting estimates. The plumber that I think I'll be going with says that for an additional $250 he could install a water sensor that would automatically shut off the water to the heater in the event of a flood. The water heater is in the utility room along with the clothes washer and dryer ($1,300 replacement cost) and the gas furnace ($4-5,000 replacement cost?). I've already ordered one of those battery-powered water alarms for $10 from Amazon, but it would not automatically shut off the water. Someone is usually home that could shut off the water if an alarm is heard, but it's not guaranteed. What do you think? Spend $250 for the auto-shutoff water sensor, or not? This plumber uses AO Smith water heaters. Another used Ruud or S...
by Dr. Gaius Baltar
Wed Mar 19, 2014 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Decreasing Term Life Insurance question
Replies: 18
Views: 2007

Re: Decreasing Term Life Insurance question

Is it generally not allowed to increase the term on your term life insurance policy once the policy is in effect?

I have a 10 year that I wanted to increase to a 20 year, keeping the same face value. The text of my policy seemed to indicate that that was doable and described an "Exchange Option", but my agent said it could not be done. Drat.
by Dr. Gaius Baltar
Sun Mar 16, 2014 4:51 pm
Forum: Personal Consumer Issues
Topic: Are Rheem gas water heaters good quality?
Replies: 16
Views: 63999

Are Rheem gas water heaters good quality?

I've been reading other peoples' comments about water heaters. Whirlpool's water heaters at Lowe's are bad quality. So are GE water heaters at Home Depot. What about Rheem water heaters at Home depot? Specifically something like this . I've also heard some good things about Bradford White, and a few bad things. Other info: My current gas water heater is 18 years old. Rebates are not available from my utility or state for new energy star rated gas water heaters. Just a $350 rebate for a GE electric heat pump water heater at Lowe's . I have no idea how much it would cost to switch from natural gas to electric. Maybe $350. Probably best to stick with natural gas. My marginal energy cost is $1.12/therm and $0.12/kwh. I am planning on selling th...
by Dr. Gaius Baltar
Sun Mar 09, 2014 11:05 am
Forum: Personal Finance (Not Investing)
Topic: 2013 TurboTax: Which Product? New Rules?
Replies: 302
Views: 50203

Re: 2013 TurboTax: Which Product? New Rules?

I thought TurboTax provided free one-on-one support by a tax professional via telephone or chat to all customers. I have a question that I want to ask a tax professional for free, but when I go to Contact Us, my only options are calling a TurboTax Customer Support Agent (free) or paying $19.99 to have a TurboTax Credentialed Tax Expert call me. Did Intuit eliminate this feature?
by Dr. Gaius Baltar
Thu Mar 06, 2014 2:50 pm
Forum: Personal Consumer Issues
Topic: The dealership wants my 2 year old car back?
Replies: 46
Views: 47307

Re: The dealership wants my 2 year old car back?

Maybe if there's something so special about my used car that it's worth the same amount as a new car, he's actually low-balling me. I should ask him for 1.5 new cars in exchange for my used one!

(In all seriousness, I'm going to tell him no thank you. And I'm a little irked that he phrased it in such a way to make me think it would be an even trade)
by Dr. Gaius Baltar
Thu Mar 06, 2014 2:25 pm
Forum: Personal Consumer Issues
Topic: The dealership wants my 2 year old car back?
Replies: 46
Views: 47307

Re: The dealership wants my 2 year old car back?

It's got 13,500 miles on it. So 21,700km.
by Dr. Gaius Baltar
Thu Mar 06, 2014 2:19 pm
Forum: Personal Consumer Issues
Topic: The dealership wants my 2 year old car back?
Replies: 46
Views: 47307

The dealership wants my 2 year old car back?

I got an odd call a couple hours ago. The car dealership wants me to bring in my 2011 Prius, and the guy on the phone said they will exchange it for a new Prius, because there's someone out there looking to buy a 2011 Prius. They made it sound like I could just straight trade my used 2011 for the new model.

This sounds like great news to me! I have won the new car lottery and can give someone my old car and get a new one. Maybe there's an antique car collector out there who is especially fond of 2 year old Priuses?

But I know that Bogleheads are often wise and can see through things like that. Am I being had? Why would a car dealership swap your used, 2 year old car for a new car?
by Dr. Gaius Baltar
Mon Mar 03, 2014 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Decreasing Term Life Insurance question
Replies: 18
Views: 2007

Re: Decreasing Term Life Insurance question

Are there better sites out there for looking up term life quotes than Term4sale, or is Term4sale pretty much the best?
by Dr. Gaius Baltar
Sun Mar 02, 2014 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing Term Life Insurance question
Replies: 18
Views: 2007

Re: Decreasing Term Life Insurance question

Do I understand correctly that if I purchased a 20 year term life policy, and say in year 5, I decided to reduce the face value to 75% of its original, then the premium would also be reduced to about 75%?

That sounds like a very simple and convenient option.
by Dr. Gaius Baltar
Sun Mar 02, 2014 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing Term Life Insurance question
Replies: 18
Views: 2007

Re: Decreasing Term Life Insurance question

bluemarlin08 wrote:Would offer some help but I am an agent, good luck.
I apologize, in my first post I said that I didn't want to speak to an agent because I was afraid of getting a hard sell. I will choose my words more carefully in the future so as not to cause offense. What I should have said is that I was wondering if there was a site where sample premiums are displayed, as with term4sale. It is awkward for me when I receive a phone call from an agent with a list of sample rates, and if for some reason I don't feel like making a purchase, I have to express that delicately. But that is a personal failing of mine, and again, my sincere apologies.
by Dr. Gaius Baltar
Sun Mar 02, 2014 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing Term Life Insurance question
Replies: 18
Views: 2007

Re: Decreasing Term Life Insurance question

yb wrote:You could always price out the effect of purchasing more than one plan using different durations and that would have a more dramatic decreasing effect and give you a comparison to other all in one plans.
I have tried that. I have a 10 year term life already and would need another 20 year in order to get my life insurance coverage to where I want it, but that would mean that for 15 of 20 years I had more life insurance coverage than I needed. I'm hoping that decreasing term life is a better fit for my needs than stacking regular term life, or, buying several identical term life policies and cancelling one every several years as needed.
by Dr. Gaius Baltar
Sun Mar 02, 2014 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Decreasing Term Life Insurance question
Replies: 18
Views: 2007

Decreasing Term Life Insurance question

Decreasing term life insurance is a form of term life insurance in which the death benefit decreases over the term, like with mortgage life insurance. This is good for people who anticipate having less of a need of income replacement in future years. Hopefully this results in a lower premium than regular term. Does anyone know of a place where I can find quotes for decreasing term life? I know you can get regular term quotes at term4sale, but I don't know where to get decreasing term quotes. It would be better if I didn't have to speak to an insurance agent first, because I don't want to get the hard sell, I just want to look at prices. I've also taken a look at just buying several regular term life policies and cancelling one of them every...
by Dr. Gaius Baltar
Sun Sep 29, 2013 11:05 am
Forum: Personal Finance (Not Investing)
Topic: 2014 Prices, Costs and Features of Medicare Advantage Plans
Replies: 37
Views: 4043

Re: 2014 Prices, Costs and Features of Medicare Advantage Pl

Is there a website that shows all the various laws and regulations for Medicare that apply to your particular state? It would be nice to see whether in Maryland, you can switch from Medicare Advantage to Medigap during the regular Medicare open enrollment period every year, etc. I've searched and searched but can't find anything.
by Dr. Gaius Baltar
Sat Aug 17, 2013 3:21 pm
Forum: Investing - Theory, News & General
Topic: True Effect of PPACA on Healthcare Stocks
Replies: 27
Views: 2982

Re: True Effect of Obamacare on Healthcare Stocks

OP, are you sure you aren't overestimating the effects of the Cadillac tax in 2018? My understanding was that, for health insurance plans with a premium in excess of $10,200 for an individual plan and $27,500 for a family plan, only the amount in excess of 10.2k/27k would be subject to the 40% excise tax. If the premium is $11k in 2018 for an individual plan, then the tax would be (11000 - 10200) * .4 = $320, not 11000 * .4 = $4400.

Cadillac Tax Calculator
by Dr. Gaius Baltar
Fri Jul 12, 2013 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Comcast Cable vs Verizon FIOS
Replies: 12
Views: 6419

Re: Comcast Cable vs Verizon FIOS

FiOS has faster internet speeds, no bandwidth cap, better TV picture quality, and when I switched it had more HD channels. I would pay extra for FiOS over Comcast. When I eventually move to a new house, I'm going to make certain that it's located in a place where I can get FiOS.

Drop Comcast and forget it ever existed. You're in FiOS land now.
by Dr. Gaius Baltar
Sat Jul 06, 2013 10:31 pm
Forum: Investing - Theory, News & General
Topic: [Permanent Portfolio fund] PRPFX-vs bonds, TIPS, total stock
Replies: 9
Views: 1788

Re: [Permanent Portfolio fund] PRPFX-vs bonds, TIPS, total s

If you prefer, instead of (or in addition to) looking at the results of each fund individually, you could always look at the overall portfolio over time, using a program called EzBacktest.

Here is a portfolio of 25/25/25/25 VTSMX/VIPSX/VBMFX/PRPFX, going back to 1/1/2008, with a 5% asset rebalance band.

Graph

Returns: 32.9%
Annualized: 5.3%
Standard Deviation: 9.2
Sharpe Ratio: 0.48
by Dr. Gaius Baltar
Tue Jun 04, 2013 5:10 am
Forum: Personal Finance (Not Investing)
Topic: I want health insurance that will never deny my claim
Replies: 33
Views: 4537

Re: I want health insurance that will never deny my claim

Am I correct in thinking that with an HMO (non-Kaiser), if you go to a hospital and have a procedure done, it's possible that it could turn out that one of the doctors was an out of network contractor, in which case you would be out of luck because HMOs don't cover out of network care, and have to pay that provider's fee out of pocket? This is my reason for thinking that out of network coverage (POS or PPO) is essential. Here is an example of what I'm talking about: "A report issued by New York State in March cited the case of a patient who went to an in-network hospital emergency room after severing his finger in a table saw accident. The finger was reattached by a nonparticipating plastic surgeon, and the bill was $83,000. The insure...
by Dr. Gaius Baltar
Mon Jun 03, 2013 9:52 am
Forum: Personal Finance (Not Investing)
Topic: I want health insurance that will never deny my claim
Replies: 33
Views: 4537

Re: I want health insurance that will never deny my claim

Well, I guess Kaiser docs really are easy for patients to get in contact with. :)
by Dr. Gaius Baltar
Mon Jun 03, 2013 4:56 am
Forum: Personal Finance (Not Investing)
Topic: I want health insurance that will never deny my claim
Replies: 33
Views: 4537

Re: I want health insurance that will never deny my claim

For people who are on Kaiser: Have you had problems calling your doctor? I've heard that they're hard to contact and that you have to go through a main Kaiser line and can't really get a callback.
by Dr. Gaius Baltar
Sun Jun 02, 2013 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: I want health insurance that will never deny my claim
Replies: 33
Views: 4537

Re: I want health insurance that will never deny my claim

rick51 and dm200: Thank you, that makes me feel better about Kaiser Permanente if I decide to go with them. I've also heard stories like what FedGuy says, though, but I guess there are plenty of complaints regarding health insurance companies to go around. stan1: Yes, my policy has catastrophic limits for in-network and out of network providers. But it seems that for out of network emergencies, I would be dealing with balance billing, even if above the catastrophic limit. The manual that they gave me is called a "certificate of coverage", and is 100 pages long, and that's what it indicates. It's an individual policy that I purchase through the state. tibbitts: Yes, it's the prospect of out of network balance billing that's worriso...
by Dr. Gaius Baltar
Sun Jun 02, 2013 6:13 am
Forum: Personal Finance (Not Investing)
Topic: I want health insurance that will never deny my claim
Replies: 33
Views: 4537

Re: I want health insurance that will never deny my claim

Not in Maryland. Maryland has no chargemasters, it has an all-payer government rate-setting system for hospitals. All payers pay the same rate.
http://www.hscrc.state.md.us/documents/ ... System.pdf
by Dr. Gaius Baltar
Sat Jun 01, 2013 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: I want health insurance that will never deny my claim
Replies: 33
Views: 4537

I want health insurance that will never deny my claim

I am absolutely terrified of having a serious health episode, waking up in the hospital, and being told that my insurance won't cover me, and being presented with a bill for $200,000 or more, and want to know if there's anything more I can do to prevent this. I live in Maryland, where the government sets the rates that hospitals can charge. The rate is the same for the uninsured, for Medicaid, Medicare, and private health insurance. So if the absolute worst happens, and I wind up in the hospital, and my insurer denies my claim, at least I won't have to pay more than what Medicare would have paid for me, which is usually reasonable. My local hospital also charges some of the lowest prices in the country. I prefer to go with Carefirst Blue Cr...
by Dr. Gaius Baltar
Sat May 18, 2013 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a program that makes Gift Tax returns (709s) easy?
Replies: 19
Views: 17660

Re: Is there a program that makes Gift Tax returns (709s) ea

I've tried reading through the instructions myself to figure it out, but it's difficult because it's lengthy and full of IRS jargon. I need to find examples of gift tax returns that have been successfully filled out so that I can figure out how to do it myself, or find out if H&R Block can do it for me, and how much they charge. It seems that clear information on the gift tax is hard to come by.

Edit~I found some examples of completed 709s which have increased my understanding of how to fill out the form.
by Dr. Gaius Baltar
Sat May 18, 2013 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Is there a program that makes Gift Tax returns (709s) easy?
Replies: 19
Views: 17660

Is there a program that makes Gift Tax returns (709s) easy?

I'm dealing with a gift that is somewhat in excess of the $14,000 gift exclusion, but far, far below the $5.25 million estate and gift exclusion. So I have to file a gift tax return on it, but not pay any actual gift taxes.

I'm accustomed to using Turbotax to do all my taxes. Turbotax is very easy, and guides the user. Filling out the form 709 manually seems daunting to me, because it's an unfamiliar experience, and I don't want to do it wrong. It seems that Turbotax doesn't include support for form 709, and I don't think H&R Block at Home or TaxACT do either. Does anyone know of a tax program that does? Preferably one that doesn't cost an arm and a leg.
by Dr. Gaius Baltar
Fri May 10, 2013 9:59 am
Forum: Personal Finance (Not Investing)
Topic: How to protect against big medical bills?
Replies: 41
Views: 7584

Re: How to protect against big medical bills?

As others have mentioned, for your spouse, get supplemental health insurance. Original Medicare, Parts A and B, cover approximately 80% of all health care costs, but have no cap, and don't cover prescription drugs. The best route would be to get a Medigap policy, as Medigap policies are more comprehensive than Medicare Advantage. You'd need to find a company that sells them to people who are under 65 (disabled). If you can't get Medigap, get Medicare Advantage from an insurer with a broad network of providers, such as Blue Cross Blue Shield (I don't know if they offer MA plans) which includes out of network coverage. HMOs do not include out of network coverage. If you're getting Medigap, get a Part D prescription drug insurance policy as we...
by Dr. Gaius Baltar
Wed Apr 24, 2013 1:23 pm
Forum: Investing - Theory, News & General
Topic: Are we in a stock bubble?
Replies: 49
Views: 5990

Are we in a stock bubble?

I've heard it said a lot that, for various policy reasons which I won't go into because it's against the rules, stocks are currently in a bubble, which will burst when those policies end.

Do you believe this is the case?

In my opinion, we are not in a stock bubble. The real price of the S&P 500 is about 75% of what it was in August 2000, nearly 13 years ago. It seems to me that stocks are still in a sort of malaise like what occurred from the late 60s to the early 80s.

Regardless, it will not affect my AA.
by Dr. Gaius Baltar
Sun Apr 14, 2013 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: How large is the Blue Cross Blue Shield provider network?
Replies: 14
Views: 1813

Re: How large is the Blue Cross Blue Shield provider network

One more suggestion to watch for, in your case, is whether the employer assistance or benefits may stop. That is very common these days with private companies, and less so with government retirees. A friend of mine worked for over 30 years for what was one of the companies with the best benefits, etc. Retirees continued to receive some degree of health insurance benefits after retiring from the company. She just retired in September 2012, and became eligible for Medicare about the same time. Her initial retirement books and papers referred to a benefit, but down the stack of papers was the notice that all such health related retiree benefits stopped January 1, 2013. http://www.medicare.gov/find-a-plan/staticpages/learn/rights-and-protectio...
by Dr. Gaius Baltar
Sun Apr 14, 2013 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: How large is the Blue Cross Blue Shield provider network?
Replies: 14
Views: 1813

Re: How large is the Blue Cross Blue Shield provider network

Basically I was wondering whether to go with Medigap Plan F High Deductible, or the Blue Cross Blue Shield plan, with their nationwide BlueCard program. My worry is that the provider network under BCBS might not be as comprehensive as under Medigap (Medicare). It seems that I have nothing to worry about, that the provider network under BCBS is, if anything, even more comprehensive than Medicare, at least when it comes to hospitals. I would just be limited to Medicare's provider network because they're the primary payer. But I can't go too far wrong with either one, it seems like. @stlutz: The BCBS plan has a lot lower cost-sharing than Medigap Plan F High Deductible. The cost-sharing is nearly as low as regular Plan F. But the BCBS plan cos...
by Dr. Gaius Baltar
Sun Apr 14, 2013 9:45 am
Forum: Personal Finance (Not Investing)
Topic: How large is the Blue Cross Blue Shield provider network?
Replies: 14
Views: 1813

Re: How large is the Blue Cross Blue Shield provider network

Yes, the Kaiser limit is $3,400 for Medicare Plus, but (I think) the high option has a lower max. You might check that out. Also, I think (never used it) that true emergencies out of area are covered as in plan expenses by Kaiser. How likely is an out of area ambulance, hospital, etc, for you that is not covered by Kaiser's out of area emergency provision? There are , also, other not so obvious savings with the Kaiser plan. One savings is that a good percentage of things I might make an apt to have checked out can be done by email with doctor. No charge! Note also that the "COST" feature is not available from all areas in Kaiser. It is in my plan (Wash DC). I have no experience with "traditional" Medicare, but I have th...
by Dr. Gaius Baltar
Sun Apr 14, 2013 8:10 am
Forum: Personal Finance (Not Investing)
Topic: How large is the Blue Cross Blue Shield provider network?
Replies: 14
Views: 1813

Re: How large is the Blue Cross Blue Shield provider network

Thank you, dm200, I had no idea that there was such a thing as a Cost plan, or what it meant. Having a Medicare Advantage plan that can fall back to original Medicare if needed seems like a very valuable thing to me. The Kaiser Permanente Medicare Plus plan is available on Medicare.gov, and there is also an employer-sponsored version with much lower cost-sharing.

I don't believe that that plan is right for me, however. I fear that if it falls back to original Medicare, but there is no Medigap plan, then like original Medicare, there might not be an out of pocket spending limit, as the plan's $3,400 out of pocket spending limit is for In-Network only.
by Dr. Gaius Baltar
Sun Apr 14, 2013 5:00 am
Forum: Personal Finance (Not Investing)
Topic: How large is the Blue Cross Blue Shield provider network?
Replies: 14
Views: 1813

Re: How large is the Blue Cross Blue Shield provider network

BlueCard provider search tool BlueCross federal employee provider search tool Medicare hospital compare tool So the BlueCard provider search yields 119 hospitals within 100 miles of zip code 33602 (Tampa, FL), and the Blue Cross federal employee nationwide plan provider search tool also yields 119 hospitals within 100 miles. That's a good sign, it may mean that BlueCard gives you access to the same number of providers as the federal employee plan. Medicare only lists 59 hospitals within 100 miles of 33602, which is problematic because Medicare is the primary payer for this retiree supplemental policy, and BCBS would be the secondary payer. I also read that BCBS requires pre-authorization sometimes, but Medicare doesn't, which suggests to m...
by Dr. Gaius Baltar
Sun Apr 14, 2013 4:30 am
Forum: Personal Finance (Not Investing)
Topic: How large is the Blue Cross Blue Shield provider network?
Replies: 14
Views: 1813

How large is the Blue Cross Blue Shield provider network?

I'm looking over a retiree supplemental health insurance policy for years from now when I'll need one. There are three employer-sponsored options, a Kaiser HMO, United Healthcare Select EPO, and the local Blue Cross Blue Shield network, Carefirst. The first two don't interest me, because who wants to have an ambulance whisk them away to a hospital that doesn't accept their health insurance? That would be a nightmare. No out of network coverage whatsoever, you see. As for the third, I'm told that all members of Blue Cross Blue Shield networks have access to what's called BlueCard, which is where you can access the local BCBS network wherever you go, even if you're a member of a BCBS network from a different region. So if you move to Florida,...
by Dr. Gaius Baltar
Sun Mar 31, 2013 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone Choosing to Retire in Maryland?
Replies: 76
Views: 8798

Re: Anyone Choosing to Retire in Maryland?

More information on hospital costs: It's hard to find real, solid data on this stuff because it all seems to be in gibberish, but here goes. The chargemaster rate for something called a Laparoscopic Cholecystectomy (removal of the gall bladder) at a place called Woodland Memorial Hospital in California is $26,301.18. Source That procedure's Medicare billing code is #47562. According to cms.gov, Medicare pays between $500 and $800 for that procedure. Source In Maryland, uninsured people pay the same rate that private health insurance companies and Medicaid and Medicare pays. So if you're uninsured, or if your health insurance company declines to pay for the removal of your gall bladder, then the rate that you pay will likely be close to the ...
by Dr. Gaius Baltar
Sun Mar 31, 2013 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone Choosing to Retire in Maryland?
Replies: 76
Views: 8798

Re: Anyone Choosing to Retire in Maryland?

There is one thing I can think of that is a definite bonus for living in Maryland. Maryland has an all-payer hospital rate-setting scheme in place. This means that if you go to the hospital and you're uninsured, you pay only as much as a private insurer or Medicaid or Medicare would have paid (they're all the same exact rate). So let's say you go to the hospital because you got in a car accident, or your finger accidentally fell off, and either you have no health insurance, or your health insurance has declined to pay for it. Ordinarily, you go to a hospital and they charge you...let's say, $125,000. In Maryland, you'll be charged only the Medicare rate, which in Maryland may be $10,000 (I don't know the exact numbers here, I'm just giving ...
by Dr. Gaius Baltar
Wed Feb 06, 2013 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Why get an employer-sponsored Medicare supplement?
Replies: 6
Views: 1018

Re: Why get an employer-sponsored Medicare supplement?

Prudence, the sort of coverage I'm thinking of pays the remaining out of pocket costs which are not covered by Medicare.

Is the money that you spend on employer-sponsored retiree health insurance exempt from income tax, as ESI is while you're an active employee? That would be another reason to use it.
by Dr. Gaius Baltar
Wed Feb 06, 2013 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Why get an employer-sponsored Medicare supplement?
Replies: 6
Views: 1018

Re: Why get an employer-sponsored Medicare supplement?

Ah, see, that makes sense. That's much better than the price you can get on Medicare.gov.
by Dr. Gaius Baltar
Wed Feb 06, 2013 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Why get an employer-sponsored Medicare supplement?
Replies: 6
Views: 1018

Why get an employer-sponsored Medicare supplement?

Around here, employers tend to offer retirees Medicare supplements, except that these Medicare supplements and prescription drug plans can cost about $500/month total. If you go on Medicare.gov, you are likely to find much more comprehensive plans (for instance, Medigap Plan F and a Part D plan with coverage in the gap) for around half that price. Even if you factor in a modest discount from your employer, you are likely to get a better deal on Medicare.gov, where you will find links to insurance companies who provide such Medicare supplements. And it seems that employers tend to spend a great deal of money to "pre-fund" these Medicare supplements. Can someone explain to me why this makes sense? If you can get a better Medicare su...