Search found 151 matches

by KSActuary
Tue Nov 14, 2017 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Wife's 401k investment options (high fees!)
Replies: 26
Views: 1150

Re: Wife's 401k investment options (high fees!)

The $1,000 admin fee is a base fee of some sort and the 20 bps are not shown on the Form 5500-SF or Annual Report. There is also the revenue sharing captured by GuidedChoice. For example, the Loomis Sayles bond fund has 25 bps 12b-1 fee and probably a sub-ta fee which is not reported annually. The p...
by KSActuary
Tue Nov 14, 2017 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Wife's 401k investment options (high fees!)
Replies: 26
Views: 1150

Re: Wife's 401k investment options (high fees!)

No idea how big the plan is in terms of assets but those fees are really loaded up with 12b-1 and sub-ta expenses. Looks like all of the admin and advisor fees are passed through the funds. If the plan is small than EF or Vanguard if above $2.0 million.
by KSActuary
Mon Nov 13, 2017 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: New Job. Confused about 401K choices..Please help
Replies: 11
Views: 471

Re: New Job. Confused about 401K choices..Please help

I second the call for including other assets in evaluation. If only looking at this 401k, I would look at the T Rowe Price Blue Chip Growth fund for a small allocation if you want to overweight to growth as it has outperformed the S&P 500 fairly handily over most periods.
by KSActuary
Wed Nov 08, 2017 10:51 pm
Forum: Investing - Help with Personal Investments
Topic: When to use a non-qualified deferred compensation plan
Replies: 9
Views: 609

Re: When to use a non-qualified deferred compensation plan

ShowMeTheER wrote:
Wed Nov 08, 2017 8:57 pm
FYI - the recently released Tax Reform details are showing a potential major shift in NQDC plans (as drafted, they'd basically be dead). This was somewhat a surprise. Something to keep an eye on as you consider your options both now and as the potential reform progresses.
+457
by KSActuary
Wed Nov 08, 2017 10:49 pm
Forum: Investing - Help with Personal Investments
Topic: Setting up S-Corp 401k / These fees high?
Replies: 9
Views: 517

Re: Setting up S-Corp 401k / These fees high?

EF has the same 0.08% asset fee.
by KSActuary
Wed Nov 08, 2017 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401(K) plan selection
Replies: 2
Views: 172

Re: Help with 401(K) plan selection

All the vendors will use asset-based fees in their pricing which is a long term no-no. Employee Fiduciary's formula is $1,500 + 0.08% of plan assets. Vanguard is $3,475 for first 15 participants with a balance with a $1,500 conversion fee. Both EF and Vanguard are open architecture where all low cos...
by KSActuary
Mon Nov 06, 2017 9:12 pm
Forum: Investing - Theory, News & General
Topic: Pension Plan Investment Results
Replies: 9
Views: 1282

Re: Pension Plan Investment Results

The unfunded liability grows and shrinks over time as the discount rate changes and real contributions and returns occur. Reasonable returns, real contributions being made to the plan and the ability of the plan to weather a rising payout ratio are important.
by KSActuary
Fri Nov 03, 2017 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Thank you LadyGeek for this very useful spreadsheet!
Replies: 8
Views: 2363

Re: Thank you LadyGeek for this very useful spreadsheet!

Where did you find the original spreadsheet. The image is a jpg.

Thanks
by KSActuary
Sun Oct 29, 2017 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: Performance of Actively Managed Account...
Replies: 16
Views: 1070

Re: Performance of Actively Managed Account...

I would take a long look at the PIMCO Income fund or other PIMCO fixed income products.
by KSActuary
Sat Oct 28, 2017 3:49 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau’s new book: How Much Can I Spend in Retirement?
Replies: 45
Views: 9992

Re: Wade Pfau’s new book: How Much Can I Spend in Retirement?

Chapter 8 is the most disappointing chapter. Up to this point, Pfau has really just thrown a ton of options at the reader with no real way to put them together into a real world actionable framework. Which of the many variable withdrawal strategies he covers should I be considering? If I want to bu...
by KSActuary
Fri Oct 27, 2017 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Question regarding 401(k) catch-up contributions and employer match
Replies: 29
Views: 1486

Re: Question regarding 401(k) catch-up contributions and employer match

One reason that the software fills the 18.5k bucket first is that most software uses the catch-up as a possible first solution to ADP testing which doesn't apply here. If the plan fails ADP testing then the HCEs are scanned for any over 50 and not completely full on the 6k bucket. They move some of ...
by KSActuary
Tue Oct 24, 2017 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Changing from company 401k to other
Replies: 11
Views: 796

Re: Changing from company 401k to other

Unless the Principal platform includes a true open architecture fund universe, I would stay away from the product.
by KSActuary
Tue Oct 24, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Self Directed Option: Worth the fees?
Replies: 11
Views: 988

Re: 401k Self Directed Option: Worth the fees?

120 per year is about the going rate for self-direction. If the core funds are poor then go self-direct
by KSActuary
Tue Oct 24, 2017 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Mechanics of Roth 401K
Replies: 18
Views: 1668

Re: Mechanics of Roth 401K

To answer the OP's original question, traditionally the software used to calculate the Roth contribution is based on gross pay but is deducted after-tax. In other words, 9k comes out of your take home pay while the 9k for the salary deferral results in a smaller deduct on take home pay due to the IR...
by KSActuary
Sat Oct 21, 2017 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 164
Views: 14844

Re: Does anyone here with net worths north of $1 mil use financial advisors?

I am looking to buy a mustang so I logged onto the Camaro web site and get opinions. Mmmmm. There can be many advantages to using an FA. First, anyone with a net worth over $1.0 million is not likely to be paying 1% - maybe much less. Second, how did they arrive at their net worth? Through investing...
by KSActuary
Thu Oct 19, 2017 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Small article : Investment priorities change
Replies: 6
Views: 813

Re: Small article : Investment priorities change

Another concern with a dividend ETF or fund is that, should interest rates rise enough to tempt some investors back into some form of fixed income, there could be a rotation away from equity-dividend assets and into more traditional fixed income as many would want to avoid the volatility associated ...
by KSActuary
Thu Oct 19, 2017 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: 401k options for small company
Replies: 8
Views: 581

Re: 401k options for small company

Lots of options for a 401k - EF, Vanguard are best.
by KSActuary
Thu Oct 19, 2017 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: Self-directed solo 401k
Replies: 4
Views: 396

Re: Self-directed solo 401k

As with many self-directed options, the fees can be high. Other than that, and the lack of diversification, go for it!
by KSActuary
Thu Oct 19, 2017 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: High fee funds
Replies: 12
Views: 1051

Re: High fee funds

If the fund has shown outperformance over a long period of time, why would you not keep it? While few and far between, there are some funds that have done quite well. Because past performance is not predictive of future performance. Well, not quite true. Funds that have underperformed tend to conti...
by KSActuary
Wed Oct 18, 2017 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Should I contribute 100% of paycheck to 401k?
Replies: 13
Views: 2520

Re: Should I contribute 100% of paycheck to 401k?

Many companies do not know about the issue where the match ends if there is no deferral which many times is a recordkeeping software issue. Better to ask first.
by KSActuary
Wed Oct 18, 2017 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: High fee funds
Replies: 12
Views: 1051

Re: High fee funds

What are you getting for your high fees? The answer is not past performance - the past is the past and does not indicate future performance. There are some strategies out there that I might be willing to pay for - mostly in bonds. PIMCO's Income Fund, junk bonds, etc. small cap EM, Long / Short, an...
by KSActuary
Thu Oct 12, 2017 2:41 pm
Forum: Investing - Theory, News & General
Topic: Why is inflation so low? Moore's law?
Replies: 33
Views: 4412

Re: Why is inflation so low? Moore's law?

Low inflation is necessary to accommodate the decline in real wages occurring in the US and developed economies. Demographics don't help either as diverting productivity into less efficient parts of the economy (health care/Medicare) provides less real GDP.
by KSActuary
Thu Oct 12, 2017 2:38 pm
Forum: Investing - Theory, News & General
Topic: Financial Planners and Negotiations
Replies: 8
Views: 868

Re: Financial Planners and Negotiations

First, the value that a client receives from an advisor can be very different as clients have differing needs. Some want complete portfolio construction and management, plus financial planning advice while others may have a more simplified objective to the portfolio and are really looking for the fi...
by KSActuary
Wed Oct 11, 2017 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Adding money to 401K/403b late in the year.
Replies: 18
Views: 907

Re: Adding money to 401K/403b late in the year.

The 10% is not correct and most employers limit salary deferrals less than 100% due to other pre-tax or after-tax employee benefits. The most common number is 70% that I have seen.
by KSActuary
Wed Oct 11, 2017 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Participant Fee Disclosure
Replies: 6
Views: 540

Re: Participant Fee Disclosure

The new DOL rule applies to brokers and advisors and their interaction with asset management including 401k plans. The new DOL rule would state that the participant should leave the money in the 401k plan unless the advisor/broker can show reason that it is better outside of the plan in an IRA. Form...
by KSActuary
Wed Oct 11, 2017 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Participant Fee Disclosure
Replies: 6
Views: 540

Re: Participant Fee Disclosure

Edward Jones may be requesting your Participant Fee Disclosure so that they can prove that they are acting in the client's Best Interests by rolling the money from the IRA to a brokerage account. The new DOL rules require that IRA rollovers be for the benefit of the participant and the broker/adviso...
by KSActuary
Tue Oct 10, 2017 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: How to move a portfolio out of a traditional advisor service?
Replies: 18
Views: 1119

Re: How to move a portfolio out of a traditional advisor service?

If you want the three fund portfolio then find a flat dollar advisor to manage the transition and be available for other questions concerning retirement. Managing a three fund portfolio is straightforward and the only reason to have an advisor is to provide financial support regarding other areas of...
by KSActuary
Tue Oct 10, 2017 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Capital advisor service
Replies: 4
Views: 455

Re: Personal Capital advisor service

I have used the free portion of Personal Capital and thoroughly examined the 401k side of Betterment. I am not sure if the portfolios are the same for Betterment with 401k versus taxable but the 401k returns were not impressive regardless of the cost or advantage of TLH. We did not pursue the Person...
by KSActuary
Mon Oct 09, 2017 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Small business opening a 401k match with possible safe harbor or profit sharing
Replies: 4
Views: 311

Re: Small business opening a 401k match with possible safe harbor or profit sharing

Why not move the plan to Vanguard? They will perform the first round of New Comparability testing for free. Any TPA can perform the testing too but will charge you for the work.
by KSActuary
Mon Oct 09, 2017 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: Feedback on Guideline 401k
Replies: 9
Views: 634

Re: Feedback on Guideline 401k

The employer, as a fiduciary, will decide who provides financial education to their employees whether it be an advisor or a CSR solution provided through the recordkeeper. Providing appropriate and cost effective participant support is one of the biggest problem with 401ks, other than hidden asset-b...
by KSActuary
Mon Oct 09, 2017 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Feedback on Guideline 401k
Replies: 9
Views: 634

Re: Feedback on Guideline 401k

Have never used Guideline so comments are based on review of web site and your original question. I currently offer EF as a possible 401k solution. Guideline appears to be another version of the recent crop of internet 401k solutions where investment choices are limited to low cost index funds and a...
by KSActuary
Mon Oct 09, 2017 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: How to handle a large ETF purchase?
Replies: 6
Views: 536

Re: How to handle a large ETF purchase?

I would suggest calling the ETF creator/sponsor to see if there is any way to avoid price volatility if you were to go into at a market price execution. They do accommodate advisors when this happens so maybe they will accommodate a retail investor.
by KSActuary
Sun Oct 08, 2017 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Moving our companies 401K plan
Replies: 2
Views: 270

Re: Moving our companies 401K plan

Vanguard can remain the recordkeeper as they provide a full architecture of available funds including all low cost index funds. Question is whether or not you want to hire a financial advisor. The new internet solutions concentrate on low cost index funds and eliminating the advisor to show lower ov...
by KSActuary
Wed Oct 04, 2017 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 49
Views: 3900

Re: Schwab Intelligent Portfolios vs. WiseBanyan

The Schwab cash requirement is a little too obvious for me as they make money using your cash for other purposes.

Regardless of interfaces, etc., how do the returns compare? Last I looked, Betterment's were not that good. How do they others compare to Betterment?
by KSActuary
Wed Oct 04, 2017 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Help Rebalancing 401k Allocation
Replies: 6
Views: 455

Re: Help Rebalancing 401k Allocation

TRP Target Date funds are more aggressive than other TDF families, IMO, but do quite well in terms of performance.
by KSActuary
Tue Oct 03, 2017 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Which 401k plan is better? This is for a small dental office
Replies: 34
Views: 2690

Re: Which 401k plan is better? This is for a small dental office

The biggest decision regarding a 401k plan is whether or not you believe that your employees need an advisor to help with investment decisions. The current crop of internet solutions drop the advisor option to illustrate lower fees but lack of guidance for your employees should be a concern. EF, AB4...
by KSActuary
Mon Jul 25, 2016 9:16 am
Forum: Investing - Help with Personal Investments
Topic: "New" combo product for LTC/Whole life insurance
Replies: 11
Views: 1418

Re: "New" combo product for LTC/Whole life insurance

There are some products which combine a UL policy with a LTC rider which payouts one of the following (or a combination): LTC benefits worth about 3 times the premium Death benefit equal to the premium Cash surrender value equal to premium Is marketed to people who are worried they will not use LTC ...
by KSActuary
Wed Jul 13, 2016 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Term Life
Replies: 4
Views: 631

Re: Term Life

Any reputable insurance agent who is not captive (works for just one company) should show you a range of premiums based on health rating for all companies available for a particular product. Investigate the companies and pick the cheapest one from the company you feel most comfortable with.
by KSActuary
Fri Jul 08, 2016 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Bond Market Bubble
Replies: 47
Views: 6021

Re: Bond Market Bubble

If you believe there is a bond bubble, then shorten durations. Vanguard has something like 9 different short-term bond funds, so that an investor can pick the kind of credit risk that is acceptable to them while keeping duration risk minimized. I suggest the Vanguard short-term corporate bond index...
by KSActuary
Fri Jul 08, 2016 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Employer contribution-yearly vs biweekly
Replies: 13
Views: 1210

Re: Employer contribution-yearly vs biweekly

At your age, you are on the positive side of the change in benefits and should benefit greatly should you stay until retirement.
by KSActuary
Thu Jul 07, 2016 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: "hidden" ETF costs
Replies: 8
Views: 549

Re: "hidden" ETF costs

I would also recharacterize as trading costs versus ETF costs.
by KSActuary
Thu Jul 07, 2016 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Employer contribution-yearly vs biweekly
Replies: 13
Views: 1210

Re: Employer contribution-yearly vs biweekly

I would be more concerned about whether or not the 4% is enough to make up for the lost defined benefit. If you are over age 45-50 then 4% may not be enough.
by KSActuary
Thu Jun 30, 2016 9:32 am
Forum: Investing - Theory, News & General
Topic: Short positions in 401 (k)
Replies: 6
Views: 592

Re: Short positions in 401 (k)

Probably, he has a position in a PIMCO fund.
by KSActuary
Thu Jun 30, 2016 9:26 am
Forum: Investing - Help with Personal Investments
Topic: 401k funds, allocation help - just starting to learn
Replies: 5
Views: 597

Re: 401k funds, allocation help - just starting to learn

If you have other funds that would allow you to allocate your total portfolio to its appropriate risk tolerance using only the S&P 500 fund in the 401(k), that would appear to be reasonable. If most of your funds are in the 401(k) and a 100% allocation to the S&P 500 would make your total po...
by KSActuary
Wed Jun 29, 2016 3:44 pm
Forum: Investing - Theory, News & General
Topic: For those that "buy" during stock market downturns...
Replies: 158
Views: 12345

Re: For those that "buy" during stock market downturns...

Wouldn't describe it as market timing but I will exchange VWIAX and VBIAX sometimes for brief periods of time.
by KSActuary
Sun Jun 26, 2016 9:54 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 125
Views: 18420

Re: Why do people buy annuities?

As to portfolio size, I have heard that future financial projections by some large 401k platforms will include biometric information for participants to help guide planning. That should be interesting and may be helpful to some.
by KSActuary
Wed Jun 22, 2016 9:04 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 125
Views: 18420

Re: Why do people buy annuities?

While many have predicted that rates would go up soon, the real chance of them moving up has not appeared until recently. Beginning last December, the bond market has been on a wild ride to say the least. While insurance companies have the advantage of an existing portfolio and the rates of return ...