Search found 314 matches

by KSActuary
Tue Apr 24, 2018 4:53 pm
Forum: Investing - Theory, News & General
Topic: Why are rising Bond Yields bad?
Replies: 33
Views: 2824

Re: Why are rising Bond Yields bad?

3% is totally symbolic. I think the flattening of the yield curve is more important short term than the absolute value of the 10 year Treasury
by KSActuary
Tue Apr 24, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal benefit & FRA
Replies: 15
Views: 1809

Re: Social Security Spousal benefit & FRA

Ok....I have run into a situation where I am frankly unsure how it would work. Spouse and I have been married for 27 years. My age: 52. I am the higher earning spouse. Spouse age: 66. Lower earning spouse, born before 1954. Just attained FRA. The question: Can my spouse collect spousal benefits, ba...
by KSActuary
Tue Apr 24, 2018 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Salary Negotiation gone sour
Replies: 98
Views: 9419

Re: Salary Negotiation gone sour

Get a new 3rd party recruiter. They are not being upfront with you. I assume that the recruiter contacted you first? Is the recruiter in someway affiliated or connected to the other firm? If not, they have nothing to lose by flipping you to the other firm and many will do whatever it takes to get i...
by KSActuary
Tue Apr 24, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Managed Beating Index?
Replies: 19
Views: 1273

Re: Managed Beating Index?

If it is an RIA then the return calculation is most-likely Modified Dietz which reflects cash flow, etc.

Best to ask the advisor for the return. You should get quarterly and annual returns from the advisor at a minimum.
by KSActuary
Tue Apr 24, 2018 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Managed Beating Index?
Replies: 19
Views: 1273

Re: Managed Beating Index?

Take into consideration the managed funds expenses which can include all or some of these: Expense Ratio, transaction fees, fund turnover rate, 12-b-1 fees, front loading, and back loading. The only fees with the indexed funds would be minimal ER. The managed funds might perform better, but once yo...
by KSActuary
Mon Apr 23, 2018 11:09 am
Forum: Investing - Theory, News & General
Topic: Bond prices and "expected" interest rate changes
Replies: 12
Views: 1150

Re: Bond prices and "expected" interest rate changes

Duration does not equal maturity and is dependent somewhat on size of coupon.

Duration is equal to the weighted average of remaining payments.

Bond prices usually anticipate interest rate increases as investors rotate out of the asset category.
by KSActuary
Mon Apr 23, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: 401k Guidance
Replies: 4
Views: 422

Re: 401k Guidance

Until the account gets bigger, I would vote for the American Balanced fund. It has lagged somewhat recently due to rising interest rates but who hasn't?

Roll the old 401k to Vanguard.
by KSActuary
Mon Apr 23, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: In-laws financial advisor rip off
Replies: 35
Views: 3922

Re: In-laws financial advisor rip off

First, where did the 0.25% per month come from? Sounds high to me given who it is.

Second, just tell straight out they are getting taken and get it off your chest.
by KSActuary
Mon Apr 23, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Corporate investment grade bonds - 5 Yr - 5.05%
Replies: 12
Views: 705

Re: Corporate investment grade bonds - 5 Yr - 5.05%

To answer the bond side, the bonds pulled up by Vanguard are primarily financial and/or LPs. You should consider what bond you would buy to get that 5.05% and what kind of volatility would prevail if rates keep going up and/or we get a blip in the economy.

I vote put towards mortgage.
by KSActuary
Fri Apr 20, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Financial planners [looking for one]
Replies: 26
Views: 1956

Re: Financial planners [looking for one]

Anyone can call themselves a financial planner or adviser. There is a difference between being a financial planner or investment adviser and a CFP or ChFC. A Certified Financial Planner(CFP) or ChFC (I would prefer that designation) is suppose to be a generalist and not an investment specialist. Th...
by KSActuary
Thu Apr 12, 2018 2:51 pm
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 1895

Re: Shorting the actively managed mutual fund market

Never thought I would run across this topic.

What you should be shorting is the investing consumer who gets the short end of the stick in this relationship.
by KSActuary
Wed Apr 11, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson
Replies: 35
Views: 2417

Re: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson

First, most investors who use this strategy use the 10 month moving average and only check at the end of the month. This chart is published on the Advisor Perspectives web site each month. Second, would someone accept an 8% versus a 9.5% return if 2008 was a 10% drawdown versus a 45% drawdown? Every...
by KSActuary
Tue Apr 10, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Are there any simple strategies that can help us squeeze better returns?
Replies: 45
Views: 2983

Re: Are there any simple strategies that can help us squeeze better returns?

Leverage on stock or fixed income side. A little less risk on the fixed income side.
by KSActuary
Tue Apr 10, 2018 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

You could also look into LT Trust. Very similar to EF but charge by participants with a balance. Cost would be about be about 1,800 per year plus 10 basis point asset fee. They use an open architecture fund universe so you could get Vanguard TDF if you want.
by KSActuary
Tue Apr 10, 2018 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

Most internet 401k providers, such as Guideline, will provider annual performance numbers for their models. Looks like Guideline offers 6 model portfolios with varying levels of equity/fixed income allocations. Some of your less interested participants will default into a model based on risk toleran...
by KSActuary
Tue Apr 10, 2018 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

Vanguard is $3,475 for the first 15 employees plus $75 for the next 35. Next 50 are $70. Ascensus has a slightly different schedule, I believe that the starting price is for 25 employees, 15 employees where employees is participants with a balance. We go through Vanguard pretty much exclusively. Th...
by KSActuary
Tue Apr 10, 2018 9:21 am
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

Vanguard is $3,475 for the first 15 employees plus $75 for the next 35. Next 50 are $70. Ascensus has a slightly different schedule, I believe that the starting price is for 25 employees, 15 employees where employees is participants with a balance. We go through Vanguard pretty much exclusively. The...
by KSActuary
Mon Apr 09, 2018 12:28 pm
Forum: Investing - Theory, News & General
Topic: Any value investor buying a Russia fund?
Replies: 92
Views: 5448

Re: A good time [price wise] to buy Russian Stocks?

I would buy Chinese all day, every day over Russian stocks.
by KSActuary
Mon Apr 09, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: I’m looking for a word...
Replies: 114
Views: 9240

Re: I’m looking for a word...

Catalyst
by KSActuary
Sun Apr 08, 2018 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: TLH: Is Wealthfront worth it/a good idea?
Replies: 6
Views: 705

Re: TLH: Is Wealthfront worth it/a good idea?

please review historical returns before you make a decision.
by KSActuary
Sun Apr 08, 2018 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: If you want an actively managed fund, which one would you use?
Replies: 68
Views: 4075

Re: If you want an actively managed fund, which one would you use?

PrimeCap Odyssey Growth or T Rowe Price Large cap growth Oddly enough, I am actually torn in deciding between these two very funds at the moment. I've got access to the T Rowe Price through my 401k, and was looking at having the PRIMECAP one in my IRA. Tough choice! PrimeCap has held up well in 201...
by KSActuary
Sun Apr 08, 2018 1:01 pm
Forum: Investing - Theory, News & General
Topic: Why 401k options are limited?
Replies: 10
Views: 769

Re: Why 401k options are limited?

The real issue is that the number of funds in a line-up matters less than how the line-up itself is organized to assist the participant in making a good decision. We see more firms coming to the same conclusion we came to years ago, make the process simple and effective. DIY Assistance through a no ...
by KSActuary
Sun Apr 08, 2018 12:55 pm
Forum: Investing - Theory, News & General
Topic: WSJ article on Vanguard snafoos - Should Bogleheads.org get involved?
Replies: 23
Views: 3083

Re: WSJ article on Vanguard snafoos - Should Boglehead.org get involved?

You might be surprised by the answer if you asked Vanguard if this is an issue high on their list. Just saying.....
by KSActuary
Sun Apr 08, 2018 12:52 pm
Forum: Investing - Theory, News & General
Topic: Do 401k Plan Providers Make Money from Mutual Fund Fees
Replies: 6
Views: 609

Re: Do 401k Plan Providers Make Money from Mutual Fund Fees

A little background on Form 5500s. First, if the plan has less than 100 participants, the Form 55500-SF will be used which has no detail for admin expenses. Just a line item, 8(f) I believe. Second, if over 100 participants then the normal Form 5500 is used and expenses should be itemized but may no...
by KSActuary
Sun Apr 08, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: Article about Dave Ramsey advisor referral program
Replies: 1
Views: 453

Re: Article about Dave Ramsey advisor referral program

The old fee was $1,000 per zip code I heard a long time ago. The zip codes are scraped from the radio shows. Biggest problem with these referrals is that they mostly have debt issues which is why they are drawn to Dave in the first place. Nothing wrong with this but it doesn't fit the normal advisor...
by KSActuary
Sun Apr 08, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: Help Me Make The Case Against Online Trading Academy
Replies: 33
Views: 2350

Re: Help Me Make The Case Against Online Trading Academy

Easy, if I did as well as they promised on the FX side, I would own the world in less than 5 years using their compounding.
by KSActuary
Sun Apr 08, 2018 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard vs Creative Planning
Replies: 22
Views: 8303

Re: Vanguard vs Creative Planning

If you are judging fees based soley on performance, then you are missing the point. Creative Planning (and many other advisory firm’s) 1% fee does not just cover investment management, but the planning, advice on all areas of one’s financial life and guidance through life changes, market gyrations,...
by KSActuary
Sat Apr 07, 2018 6:36 am
Forum: Investing - Theory, News & General
Topic: Do 401k Plan Providers Make Money from Mutual Fund Fees
Replies: 6
Views: 609

Re: Do 401k Plan Providers Make Money from Mutual Fund Fees

The term you are looking for is revenue sharing. Any mutual fund can have revenue sharing so you need to look at the prospectus or ask someone here. A fund line-up can include funds with revenue sharing and some that do not. The overall goal for Fidelity is to capture a certain level of asset-based ...
by KSActuary
Fri Apr 06, 2018 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard vs Creative Planning
Replies: 22
Views: 8303

Re: Vanguard vs Creative Planning

The Creative Planning is well known. You are assigned a relationship advisor and the planning is performed by others in the firm. I believe the models are BlackRock with some tweaks. They hit it big by using TD Ameritrade to steer clients their way in the beginning. CPA, estate planning attorneys on...
by KSActuary
Fri Apr 06, 2018 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

Just googled Slavic, do they really charge 95 basis points?
by KSActuary
Fri Apr 06, 2018 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

I don't know the fees, but our small company uses Slavik and has Vanguard funds and seems to have reasonable (and transparent) fees. https://www.slavic401k.com/ I have never seen the fees for Slavic401k? Care to share them to the community? I could see a sticky or available resource here for fees a...
by KSActuary
Fri Apr 06, 2018 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

The biggest difference that you will see is the difference in technology, especially since you are coming from John Hancock. Not that EF is bad but not up to par with Hancock. We do not get any complaints regarding the web site but most of the clients that fit the EF model (small / new plan) may not...
by KSActuary
Fri Apr 06, 2018 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: What to do?
Replies: 8
Views: 754

Re: What to do?

1+ Contact state regulator and complain.
by KSActuary
Fri Apr 06, 2018 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

The fee quoted assumes a bundled approach where there is no separate TPA (Employee Fiduciary will be the TPA internally). TPA use depends a lot on internal employer staff, etc. The 0.08% fee is for trading on the Matrix platform and are in addition to the fund fees. We have never been able to get th...
by KSActuary
Fri Apr 06, 2018 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

Employee Fiduciary charges by eligible employee, not participants with a balance.

LT Trust will charge 1,700 plus 48 times 15 (participants with a balance over 10) plus a 0.10% asset charge.
by KSActuary
Fri Apr 06, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1147

Re: Small company 401k plans

1.5% - 2% is highway robbery! Your external relationships with recordkeeper/TPA will depend on how much work you want to take internal. A 25 person 401k is very easy to administer (just a payroll upload) so a TPA may only be necessary if you do not have someone that can process the upload or you jus...
by KSActuary
Fri Apr 06, 2018 9:25 am
Forum: Investing - Help with Personal Investments
Topic: SEIA Advisors?
Replies: 5
Views: 398

Re: SEIA Advisors?

$5 billion in assets with most being non-discretionary. Looks like the investor approves the allocation which changes the relationship from fiduciary to broker. Might be way off on that. What's the performance like? A firm that big should have audited performance. They are not cheap, either.
by KSActuary
Wed Apr 04, 2018 4:11 pm
Forum: Investing - Theory, News & General
Topic: Libor-OIS Spread
Replies: 4
Views: 506

Re: Libor-OIS Spread

Bloomberg removed it from their retail site some time ago. I do not know of any readily available source for the spread calculation which is 3M LIBOR and 3M Overnight Index Swap (OIS) rate. Quite surprised that this topic isn't getting more attention.
by KSActuary
Wed Apr 04, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Fee-only vs Fee-Based , Outright lieing?
Replies: 18
Views: 2589

Re: Fee-only vs Fee-Based , Outright lieing?

Bettermint, Vanguard, Schwab and many others now offer a compromise in the form of computer management that also includes some interaction with an advisor. This costs less than full advisor management, but it seems to work pretty well. And it is true that if you study all this sufficiently, you wou...
by KSActuary
Wed Apr 04, 2018 9:44 am
Forum: Investing - Help with Personal Investments
Topic: SPOT [Investing in Spotify]
Replies: 45
Views: 2531

Re: SPOT [Investing in Spotify]

Low barrier to entry and competing against the big players doe not bode well for SPOT or any other music/entertainment service.
by KSActuary
Wed Apr 04, 2018 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Financial Advisor fees? Am I paying too much?
Replies: 54
Views: 3874

Re: Financial Advisor fees? Am I paying too much?

Basic question here. How does an advisor get away with charging that much> I am completely dumbfounded, not by the OP's asking the question, but by how this can be ethical?
by KSActuary
Tue Apr 03, 2018 6:44 pm
Forum: Investing - Theory, News & General
Topic: Why does it seem there are so many bad/poor 401K plans?
Replies: 36
Views: 3536

Re: Why does it seem there are so many bad/poor 401K plans?

Advisors and recordkeepers love asset based fees for future fee growth. Many old 401ks came from mutual fund companies who did their own recordkeeping (T Rowe Price is a great example). The plan was considered free as the fees were hidden in the funds so employer had no motivation to investigate. Th...
by KSActuary
Mon Apr 02, 2018 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity w guaranteed 5-6% return [payout]?
Replies: 50
Views: 4476

Re: Annuity w guaranteed 5-6% return?

Lower interest rate structure affects all insurance company products and annuities are somewhat expensive now. I would expect that the true investment return in the 7% payout on a SPIA is 2% - 3%.
by KSActuary
Mon Apr 02, 2018 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Advice Needed: Stuck with Cash-Value Life Insurance?
Replies: 5
Views: 415

Re: Advice Needed: Stuck with Cash-Value Life Insurance?

Get the in-force illustration and a better strategy may be offered.

Good luck
by KSActuary
Mon Apr 02, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: Ameriprise advisor question
Replies: 12
Views: 909

Re: Ameriprise advisor question

Ameriprise is an advisor-only model so you must be assigned an advisor to have your assets held there. Even if your advisor leaves or goes away, you are then assigned to the office head as an orphan account with the same fee.
by KSActuary
Tue Mar 27, 2018 8:30 pm
Forum: Investing - Theory, News & General
Topic: More bad news for Wealthfront
Replies: 30
Views: 6947

Re: More bad news for Wealthfront

Just need to look at their returns to know to stay away. Got a link? Here is a comparison of Wealthfront with other robo advisors, from BackendBenchmarking's Robo Report. Betterment is highlighted because that is what I use. As you can clearly see, Wealthfront's performance is nothing to brag about...
by KSActuary
Tue Mar 27, 2018 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: ERISA law and return of 401k contribution
Replies: 5
Views: 661

Re: ERISA law and return of 401k contribution

Can't move deferrals to catch-up then.
by KSActuary
Tue Mar 27, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: More bad news for Wealthfront
Replies: 30
Views: 6947

Re: More bad news for Wealthfront

Just need to look at their returns to know to stay away. Got a link? https://www.wealthfront.com/historical-performance Go to Methodology in footnotes. Look for historical returns. You can then look at risk value (8.0 for example) and then go to benchmark description to better understand allocation...