Search found 373 matches

by KSActuary
Fri Jul 20, 2018 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Ladder Managed Account
Replies: 30
Views: 1271

Re: Bond Ladder Managed Account

Setting aside the fund versus ladder argument, a ladder should be built and charged a fixed dollar fee once by the advisor. We typically split the account and charge a one-time fee of $500 to $1,000 per ladder. An advisor does not do much after the ladder is built except watch for debt rating revisi...
by KSActuary
Mon Jul 16, 2018 12:16 am
Forum: Investing - Theory, News & General
Topic: Brokers sell ETF order flow used to trade against clients
Replies: 24
Views: 1596

Re: Brokers sell ETF order flow used to trade against clients

The sale of order flow typically has a small negative effect for small orders but a very large negative effect on large orders (such as typically executed by mutual funds). Even if you use a broker that does NOT sell order flow (or direct your orders to the largest exchange offering Best Bid/offer)...
by KSActuary
Thu Jul 05, 2018 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Disappointed with Fidelity 401k
Replies: 36
Views: 3512

Re: Disappointed with Fidelity 401k

From an advisor's perspective, all you have to know is that Fido was sued by their own employees regarding high fees in the Fido 401k plan. I think the funds are picked by the employer. It doesn’t look good for Fidelity as an employer. However my 401k is at Fidelity and there are great Vanguard ind...
by KSActuary
Thu Jul 05, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: 401k fees...what's "too high?"
Replies: 50
Views: 3167

Re: 401k fees...what's "too high?"

44 bps depends on the size of the plan. If the plan is small then 44 bps is pretty good. If is a large plan (over $10 million) then not so good.
by KSActuary
Fri Jun 29, 2018 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Disappointed with Fidelity 401k
Replies: 36
Views: 3512

Re: Disappointed with Fidelity 401k

From an advisor's perspective, all you have to know is that Fido was sued by their own employees regarding high fees in the Fido 401k plan.
by KSActuary
Fri Jun 29, 2018 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Using the Total Bond Fund in a rising rate environment
Replies: 72
Views: 8633

Re: Using the Total Bond Fund in a rising rate environment

Why is your plan administrator giving financial investment advice? "Winner, winner, chicken dinner" The 401k plan can include any number of short maturity corp or gov't bond funds which can be used for a safe haven during the rising interest rate scenario. The Vanguard money market fund found in ma...
by KSActuary
Tue Jun 19, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Creative Planning vs Vanguard PAS
Replies: 94
Views: 6076

Re: Creative Planning vs Vanguard PAS

I believe that CP is using the portfolios available from BlackRock with a few changes. Nothing magic. I would expect the returns to be actual. Sorry but what do you mean by actual? I have never spoken to a CP relationship manager, even though I have spoken with many CP planners who work in our buil...
by KSActuary
Mon Jun 18, 2018 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Creative Planning vs Vanguard PAS
Replies: 94
Views: 6076

Re: Creative Planning vs Vanguard PAS

I believe that CP is using the portfolios available from BlackRock with a few changes. Nothing magic. I would expect the returns to be actual.
by KSActuary
Thu Jun 14, 2018 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Thrivent?
Replies: 17
Views: 1780

Re: Thrivent?

Edward Jones to Thrivent? Wow, quite the combo there.

Run
by KSActuary
Tue Jun 12, 2018 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to taxable account or Paychex 401k?
Replies: 2
Views: 275

Re: Contribute to taxable account or Paychex 401k?

This is a typical PayChex 401k plan that was sold with all of the bells and whistles including 3(38) and 3(16) ERISA fiduciary services. The expenses for the funds are relatively low since you are paying the asset-based fees on a stand alone basis which may total 50 -60 bps (depends on plan size). I...
by KSActuary
Mon Jun 11, 2018 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Creative Planning vs Vanguard PAS
Replies: 94
Views: 6076

Re: Creative Planning vs Vanguard PAS

Here is a summary of what I've learned so far: a. CP has done a good job to date b. Much of the CP value added is behind us c. The typical robo advisor would save me 0.6% (0.85-0.25) d. There are several robo advisors offering most if not all the same capabilities There is one critical question I h...
by KSActuary
Thu Jun 07, 2018 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Keep two disability policies?
Replies: 7
Views: 503

Re: Keep two disability policies?

Group policies can be very worthless in certain situations. If the disability is not clear cut and the insurer fights it, most disabled employees lose.
by KSActuary
Thu Jun 07, 2018 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Setup Advice/Guidance
Replies: 11
Views: 705

Re: 401k Setup Advice/Guidance

The funds available in your 401(k) are particular enlightened, so I am surprised there is not a Target Retirement or LifePath or Target Date series of funds available. Are they available and you decided not to show them? Or are they called "Legacy funds" in your plan? All of my options were listed....
by KSActuary
Wed Jun 06, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7729

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

Just finished enrolling 250 participants in a takeover plan and there was not one DIY'er that identified themselves. The line-up includes TDFunds, Vanguard Total index funds, a dozen individual funds to allow tilting and the Life strategy funds. Enrollment is so much easier since we went to this lin...
by KSActuary
Wed May 30, 2018 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: Creative Planning vs Vanguard PAS
Replies: 94
Views: 6076

Re: Creative Planning vs Vanguard PAS

I guess I just don't get it. Any advisor worth their salt should perform asset location allocation. It just makes sense. CP is a very well-known advisory firm who uses the planner/advisor structure where the advisor is the relationship manager and the planner performs the asset allocation strategy. ...
by KSActuary
Sun May 27, 2018 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Taking a pension to invest in stocks
Replies: 47
Views: 2640

Re: Taking a pension to invest in stocks

Sounds like a cash balance plan. I haven't seen one lately where you could replace the lost income by taking the lump sum and investing it.
by KSActuary
Sat May 26, 2018 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: TD Ameritrade Branch Offices
Replies: 6
Views: 680

Re: TD Ameritrade Branch Offices

Local TDA offices offer two services. First, they offer a brick and mortar location for internet inbound interested parties to meet face to face with TDA staff/advisors. Second, advisors who use TDA as a custodian can allow clients to use any TDA branch office to deposit/withdraw funds, etc.
by KSActuary
Sat May 26, 2018 2:36 pm
Forum: Investing - Help with Personal Investments
Topic: Question about E*money
Replies: 12
Views: 1299

Re: Question about E*money

I am the founder of a fixed fee 401k solution so, yes, I am an advisor. We offer MGP free to all of our participants, that's why we are so good at setting it up. If we could get everyone involved comfortable with the necessary exchange of data, we could set it up for your use. No charge. This is not...
by KSActuary
Sat May 26, 2018 10:06 am
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 76
Views: 12564

Re: Why Edward Jones?

Most FA's have become just asset gatherers. They have become relationship managers and have left the asset management to technology which is not a bad thing for many investors. Financial planning can be different based on family wealth and facts at the time of retirement. Once the basic financial pl...
by KSActuary
Sat May 26, 2018 2:02 am
Forum: Personal Finance (Not Investing)
Topic: Buy an old farmhouse?
Replies: 52
Views: 5110

Re: Buy an old farmhouse?

Do it. You will find out a lot about yourself which is mostly always a positive experience.
by KSActuary
Sat May 26, 2018 1:53 am
Forum: Investing - Help with Personal Investments
Topic: Question about E*money
Replies: 12
Views: 1299

Re: Question about E*money

Once you get good at setting up MoneyGuidePro, a fairly complex plan takes about any hour to set-up. The key is collecting good data up front.
by KSActuary
Sat May 26, 2018 1:50 am
Forum: Investing - Help with Personal Investments
Topic: Exiting a variable annuity
Replies: 12
Views: 1170

Re: Exiting a variable annuity

Would need more details regarding the purchaser and the circumstances to say anything. Paying a securities attorney $500 to send a letter is a small cost to find out.
by KSActuary
Thu May 24, 2018 12:16 pm
Forum: Investing - Theory, News & General
Topic: Edelman & Financial Engines merging
Replies: 36
Views: 4105

Re: Edelman & Financial Engines merging

The Edelman fee structure is tiered like most firms with the first $1 million being charged a weighted 1.4% with the next million get 0.75% for a little north of 1% for 2 million portfolio.

Great work when you can get it!
by KSActuary
Thu May 24, 2018 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Exiting a variable annuity
Replies: 12
Views: 1170

Re: Exiting a variable annuity

Get a good securities attorney to write a letter to the compliance officer of the offending broker requesting that you receive your total premium back. A VA sold into a Roth IRA is a new one to me and the suitability requirement would really be questionable.
by KSActuary
Wed May 23, 2018 10:19 pm
Forum: Investing - Help with Personal Investments
Topic: Question about E*money
Replies: 12
Views: 1299

Re: Question about E*money

E money/WealthVision was purchased by Fidelity several years and any non-Fidelity advisor should have moved on as Fidelity could access info (assumed - who knows). The monte carlo model is confusing. I prefer MoneyGuidePro.
by KSActuary
Tue May 22, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Universal Life
Replies: 13
Views: 1221

Re: Whole Life vs Universal Life

If you can make a life insurance premium than you can set-up a corporate account which can be similarly invested to, at least, insulate the business from market changes. Won't help much with the taxes but them are the problems with a NQ plan.
by KSActuary
Mon May 21, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: Edelman & Financial Engines merging
Replies: 36
Views: 4105

Re: Edelman & Financial Engines merging

Always ask for past returns for a similar type investor.
by KSActuary
Thu May 17, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Ally No Penalty CD @1.75% vs VMMXX @ 1.87%
Replies: 26
Views: 3577

Re: Ally No Penalty CD @1.75% vs VMMXX @ 1.87%

ERISA Stone wrote:
Thu May 17, 2018 8:38 am
LFKB wrote:
Thu May 17, 2018 12:23 am
To put this in perspective, the difference of .12% on $25k is $30 per year...and it would be less after the expense ratio
This is Bogleheads. Based on the comments I read, there are plenty of people who would go through the hassle to switch for $30. :D
+$30
by KSActuary
Sun May 13, 2018 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Small company 401k plans
Replies: 42
Views: 2761

Re: Small company 401k plans

Our small PC plan (4 owners, 1 employee) has I’m guessing $2M in assets. Our goal is to maximize benefit to owners. Basically, we max out and plan testing tells us what to contribute to 1 non HCE. Guideline only offers comp to comp (pro rata) and equal amount profit sharing which doesn’t fit what w...
by KSActuary
Sun May 13, 2018 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Investment Options
Replies: 6
Views: 558

Re: 401K Investment Options

In terms of bond funds, I like the Metropolitan. You don't have any great choices.

You can go all stock in the 401k but you will get (should) reminders about your allocation.
by KSActuary
Wed May 09, 2018 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: High fee funds
Replies: 26
Views: 3284

Re: High fee funds

PRWCX has beaten the S&P 500 index for more than 20 years. The PrimeCap Odyssey funds are also putting up an impressive record so far. The majority of funds do not beat their index just as pro sports teams fair poorly after expansion - too many cooks in the kitchen with ulterior motives. Nothing is ...
by KSActuary
Wed May 09, 2018 5:35 pm
Forum: Investing - Theory, News & General
Topic: 401k Stable Value Fund Rates?
Replies: 35
Views: 2660

Re: 401k Stable Value Fund Rates?

Please remember that SVF rates can differ because the advisor and/or recordkeeper can shave the yield for a bigger payout.
by KSActuary
Wed May 09, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: High fee funds
Replies: 26
Views: 3284

Re: High fee funds

How about heads 20 times?
by KSActuary
Mon May 07, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Guideline 401k
Replies: 18
Views: 2315

Re: Guideline 401k

eazyigz wrote:
Sun May 06, 2018 7:02 pm
Out of curiosity, have you considered http://americasbest401k.com/? They have the lowest fees in the industry.
Wrong. Not when you throw in the 65 bps trail.
by KSActuary
Sat May 05, 2018 11:07 am
Forum: Investing - Theory, News & General
Topic: Shorting - Can Someone Explain
Replies: 32
Views: 2374

Re: Shorting - Can Someone Explain

Thanks all! Very helpful! Shorting sounds like a great way to either make a ton or LOSE a ton ;) You are betting against the trend. It only works if you have inside information (information that the market does not know) leading you to believe that a company is in trouble. If you have inside inform...
by KSActuary
Sat May 05, 2018 10:57 am
Forum: Investing - Theory, News & General
Topic: What are the questions you would ask a Financial Advisor ?
Replies: 59
Views: 4213

Re: What are the questions you would ask a Financial Advisor ?

Asking an advisor what he invests in versus wanting to confirm that he invests in the "same" things are kind of two different things. I guess you could get the most information if the advisors uses ETFs for himself versus high cost mutual funds for his clients but this ignores the fact that he might...
by KSActuary
Sat May 05, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Confused by Fees - Valic 401k
Replies: 4
Views: 1000

Re: Confused by Fees - Valic 401k

My wife's 401k is with Valic and I am a bit confused about certain fund fees. Typical fund expense ratios I get. For example one fund MUETX, lists a net expense ratio of 0.85%, that I understand. However, if I click on another option for Fund Fees in the side bar, I see the following: VALIC receive...
by KSActuary
Sat May 05, 2018 10:47 am
Forum: Investing - Theory, News & General
Topic: What are the questions you would ask a Financial Advisor ?
Replies: 59
Views: 4213

Re: What are the questions you would ask a Financial Advisor ?

Why do clients want to see an advisor's portfolio? You may not have the same investment risk profile. It gives you an idea of how he thinks...and whether he eats his own cooking. Your advisor may not be ordering from the same part of the menu as the investor due to significant differences in risk t...
by KSActuary
Fri May 04, 2018 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Doctor selling a practice
Replies: 23
Views: 2892

Re: Doctor selling a practice

Usually the seller may negotiate a stay clause for the other employees for a certain amount of time with similar pay and benefits. Once the time is up, anything can and will happen. This is no different than any other business where staff interact with clients.
by KSActuary
Fri May 04, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Navy Federal Credit Union CDs
Replies: 8
Views: 1072

Re: Navy Federal Credit Union CDs

Investment grade bonds pay about 3% for a 3 year maturity so a 5 year seems a long to me. Split it 50/50.
by KSActuary
Thu May 03, 2018 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Company stock in 401k plan question
Replies: 8
Views: 475

Re: Company stock in 401k plan question

Yes, NUA can be a big deal if you have a big unrealized gain in the account attributable to the stock.
by KSActuary
Thu May 03, 2018 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: Company stock in 401k plan question
Replies: 8
Views: 475

Re: Company stock in 401k plan question

You should first determine how much she has made off the company stock before changing anything. Company stock can have favorable tax status within a 401k plan.
by KSActuary
Mon Apr 30, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Can Employer Set 401k Contribution Limit Below IRS Limit?
Replies: 33
Views: 2617

Re: Can Employer Set 401k Contribution Limit Below IRS Limit?

Don't buy the AUM argument either since the participants probably pay those costs.

Any type of industry issue, tradition or union/non-union issue?
by KSActuary
Sun Apr 29, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: What are the questions you would ask a Financial Advisor ?
Replies: 59
Views: 4213

Re: What are the questions you would ask a Financial Advisor ?

Why do clients want to see an advisor's portfolio? You may not have the same investment risk profile.
by KSActuary
Sun Apr 29, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Ameriprise :(
Replies: 64
Views: 9433

Re: Ameriprise :(

How does your advisor meet the "Know your client" obligation if he hasn't talked with you. Want to get his attention? Call the office manager and ask to speak with him regarding the advisor's lack of professionalism and mention you would like to keep this from escalating to a written letter which t...
by KSActuary
Fri Apr 27, 2018 10:03 pm
Forum: Investing - Theory, News & General
Topic: Falling ETF and mutual-fund fees saved investors $4 billion last year
Replies: 2
Views: 368

Re: Falling ETF and mutual-fund fees saved investors $4 billion last year

Most fund families made the same amount or more money in different ways.
by KSActuary
Fri Apr 27, 2018 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: New Car: Ever make sense to lease?
Replies: 140
Views: 14164

Re: New Car: Ever make sense to lease?

In the way back machine when the then new BMW 3 series came over from Germany, dealers regularly started over msrp on the lease price. Probably not as prevalent now as people are better educated but leasing is a really bad way to own a depreciating asset