Search found 2582 matches

by Professor Emeritus
Wed May 20, 2015 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Do most folks pay for trips before going (India)
Replies: 13
Views: 2689

Re: Do most folks pay for trips before going (India)

No Idea but last month I did laundry at a laundromat in Germany with the servant of an Indian family.
She joked that they would not know how to run the machines.
by Professor Emeritus
Wed May 20, 2015 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 46255

Re: How much does social security factor into your retirement income?

Edited to add. As an incentive for my wife to support our delay I plan on increasing our income from savings to add incrementally more after our initial filing, which will still stay below the 3.5% but will be a type of reward for tightening the belt for the previous 2.5 years. This will add over 10k a year in income, increasing with a floor based on market performance, and will make the delay more palatable for my wife. no problem with the rest of the plan but once you are retired there is no "merit" to tightening the belt" NOW My perspective is driven by the fact that my wife became disabled at 60. I ma glad we never put anything off. Even disabled we fly to London today. I will spend whatever makes the trips work How nice...
by Professor Emeritus
Wed May 20, 2015 7:51 am
Forum: Personal Investments
Topic: 457b decisions
Replies: 2
Views: 950

Re: 457b decisions

Important to note that this is a government employer 457 b , totally different and lower risk structure from a private one.
by Professor Emeritus
Wed May 20, 2015 7:29 am
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 46255

Re: How much does social security factor into your retirement income?

Edited to add. As an incentive for my wife to support our delay I plan on increasing our income from savings to add incrementally more after our initial filing, which will still stay below the 3.5% but will be a type of reward for tightening the belt for the previous 2.5 years. This will add over 10k a year in income, increasing with a floor based on market performance, and will make the delay more palatable for my wife. no problem with the rest of the plan but once you are retired there is no "merit" to tightening the belt" NOW My perspective is driven by the fact that my wife became disabled at 60. I ma glad we never put anything off. Even disabled we fly to London today. I will spend whatever makes the trips work How nice...
by Professor Emeritus
Wed May 20, 2015 6:13 am
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 46255

Re: How much does social security factor into your retirement income?

John3754 wrote: Why are the millennials increasing in population size until 2036?

Immigration?
by Professor Emeritus
Wed May 20, 2015 6:11 am
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 46255

Re: How much does social security factor into your retirement income?

vested1 wrote: Edited to add. As an incentive for my wife to support our delay I plan on increasing our income from savings to add incrementally more after our initial filing, which will still stay below the 3.5% but will be a type of reward for tightening the belt for the previous 2.5 years. This will add over 10k a year in income, increasing with a floor based on market performance, and will make the delay more palatable for my wife.
no problem with the rest of the plan but once you are retired there is no "merit" to tightening the belt" NOW

My perspective is driven by the fact that my wife became disabled at 60. I ma glad we never put anything off. Even disabled we fly to London today. I will spend whatever makes the trips work
by Professor Emeritus
Wed May 20, 2015 6:04 am
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 46255

Re: How much does social security factor into your retirement income?

Confused wrote:
Professor Emeritus wrote:
Confused wrote:None. I make my decisions based on the assumption that we will get zero from Social Security.
Do you do the same for government bonds? And stock dividends? etc
Yes. When the value of my retirement accounts reaches $600,000, I will retire then. Not a moment sooner or later than that. With a paid off mortgage, that gives us at least 30x expenses, despite having zero supplemental income. If there happens to be some, all the better.
Why do you think stock dividends will be there? etc? I simply point out that there there are uncertainties in all financial situations .
by Professor Emeritus
Tue May 19, 2015 5:23 pm
Forum: Investing - Theory, News & General
Topic: "Years of Overlooked Red Flags Catch Up to Stockbroker"
Replies: 12
Views: 4033

Re: "Years of Overlooked Red Flags Catch Up to Stockbroker"

Bogleheads: Do you think FINRA, the industry-funded regulatory group, will protect you from dishonest brokers and advisers? Think again. This article should be read by everyone who uses a broker or advisor: Years of Overlooked Red Flags Catch Up to Stockbroker Best wishes. Taylor Quote of the day Clients of Merrill Lynch, where Mr. Cicolani worked from 1991 to 2010 in Akron, Ohio, had named him in more than 60 complaints by the time he left the firm. Merrill paid $12 million in settlements to his customers and kept him on for years after the complaints began to roll in. A Merrill spokesman said that the complaints stemmed from a strategy created by a more senior financial adviser in Ohio and that the firm decided “that it was most appropri...
by Professor Emeritus
Tue May 19, 2015 5:20 pm
Forum: Investing - Theory, News & General
Topic: "Years of Overlooked Red Flags Catch Up to Stockbroker"
Replies: 12
Views: 4033

Re: "Years of Overlooked Red Flags Catch Up to Stockbroker"

All industry groups are like that, healthcare, lawyers - they look after their own. And we are on our own: There are few things harder to accomplish in the U.S. than getting disbarred. According to a study conducted by the American Bar Assn., 1,046 lawyers were disbarred in 2011 — that's less than 0.08% of the 1.27 million total practicing attorneys in the United States. That phenomenally low percentage reflects the courts' general reluctance to bring down the hammer, even when lawyers intentionally harm their clients, a cardinal sin under the Model Rules [of Professional Misconduct]. - Los Angeles Times, Feb. 11, 2014 http://articles.latimes.com/2014/feb/11/opinion/la-oe-chong-stephen-glass-disbar-california-20140211 There are over a mill...
by Professor Emeritus
Tue May 19, 2015 4:51 pm
Forum: Investing - Theory, News & General
Topic: Supreme Court rules in favor of 401k participants who object to high fees
Replies: 35
Views: 9230

Re: Supreme Court rules in favor of 401k participants who object to high fees

Well if revenue sharing will be a target for lawsuits, I would guess a majority of pension plans (defined contribution ) will lose lawsuits. I would imagine that our small business would simply close down our plan Why? transparency generates economic efficiency. We already contribute 20% of salary to each of our employees. If we (the owners) would also have to carry the cost of administration, the owners, as a group, might choose to go to SEP IRAs with no corporate overhead. It's just a guess. Administrative costs are administrative costs. You are not really contributing 20% you are contributing 20% MINUS the administrative costs.You are hiding the administrative costs in the kickback. That is always inefficient. True. My dilemma as a trus...
by Professor Emeritus
Tue May 19, 2015 3:43 pm
Forum: Investing - Theory, News & General
Topic: Supreme Court rules in favor of 401k participants who object to high fees
Replies: 35
Views: 9230

Re: Supreme Court rules in favor of 401k participants who object to high fees

kmurp wrote:
Professor Emeritus wrote:
kmurp wrote:Well if revenue sharing will be a target for lawsuits, I would guess a majority of pension plans (defined contribution ) will lose lawsuits. I would imagine that our small business would simply close down our plan
Why? transparency generates economic efficiency.
We already contribute 20% of salary to each of our employees. If we (the owners) would also have to carry the cost of administration, the owners, as a group, might choose to go to SEP IRAs with no corporate overhead. It's just a guess.
Administrative costs are administrative costs. You are not really contributing 20% you are contributing 20% MINUS the administrative costs.You are hiding the administrative costs in the kickback. That is always inefficient.
by Professor Emeritus
Tue May 19, 2015 3:38 pm
Forum: Personal Investments
Topic: Should I sell my company's stock and exchange it for an SP500 index fund?
Replies: 60
Views: 16172

Re: Should I sell my company's stock and exchange it for an SP500 index fund?

schlesinger wrote:- Isn't a 20% tax a pretty high transaction cost that should be avoided?.
its not the 20%, its the return on the 20%. You already owe the government 20 % payable when you sell the stock.

until you sell you only have a Paper gain'

You never count your money when you're sittin' at the table.
There'll be time enough for countin' when the dealin's done.
by Professor Emeritus
Tue May 19, 2015 3:29 pm
Forum: Personal Investments
Topic: Maximizing Taxable Account In Early Stages of Retirement
Replies: 12
Views: 2341

Re: Maximizing Taxable Account In Early Stages of Retirement

randomguy wrote:
Your intuition is wrong. You should be 100% stocks in taxable (assuming your AA allows that) and up the bonds ratio in tax deferred to get to your desired AA.
+1 with the tiny caveat that emergency funds should not be in equities. We use VGIAX for the taxable equities
fixed income in Tax sheltered is G Fund. tax sheltered stock is FSTVX.
by Professor Emeritus
Tue May 19, 2015 1:53 pm
Forum: Investing - Theory, News & General
Topic: Supreme Court rules in favor of 401k participants who object to high fees
Replies: 35
Views: 9230

Re: Supreme Court rules in favor of 401k participants who object to high fees

kmurp wrote:Well if revenue sharing will be a target for lawsuits, I would guess a majority of pension plans (defined contribution ) will lose lawsuits. I would imagine that our small business would simply close down our plan
Why? transparency generates economic efficiency.
by Professor Emeritus
Tue May 19, 2015 10:22 am
Forum: Investing - Theory, News & General
Topic: Supreme Court rules in favor of 401k participants who object to high fees
Replies: 35
Views: 9230

Re: Supreme Court rules in favor of 401k participants who object to high fees

kmurp wrote:Does this mean as trustees, we cannot offer actively managed mutual funds? Or can we do so as long as we offer a menu of low cost index funds as well? We offer total stock, total bond and total international as well as vanguard REIT, TIPS and convertibles. We do not offer index funds for small cap , midcap etc. These spaces are filled with active funds which produce revenue sharing for plan administration.
"Kickbacks" aka revenue sharing will be the big target for litigation. A prudent trustee had better be prepared with market analysis showing that the costs to participants are worth the benefits and are transparent. Hiding the costs of administration from the workers is not an acceptable benefit.
by Professor Emeritus
Tue May 19, 2015 10:16 am
Forum: Investing - Theory, News & General
Topic: Supreme Court rules in favor of 401k participants who object to high fees
Replies: 35
Views: 9230

Re: Supreme Court rules in favor of 401k participants who object to high fees

Under trust law, a trustee has a continuing duty to monitor trust investments and remove imprudent ones Sad, but the investment science has moved far further and faster than trust law. What is an imprudent investment? What is a prudent investment? Mutual fund trustees must discuss this every time an advisory contract is up for renewal. I always grind my teeth when lawyers advise trustees that they should look at underperforming advisors and ask questions to satisfy themselves that the underperformance is temporary and not permanent. Can trustees identify active managers who will outperform? How? Past performance is indicative of future lawsuits or something to that effect. Don't think Vanguard funds are immune. Invest in an emerging market...
by Professor Emeritus
Tue May 19, 2015 6:01 am
Forum: Personal Investments
Topic: AA for both short and long-term goals
Replies: 2
Views: 927

Re: AA for both short and long-term goals

Portfolio asset allocation is by definition a long term strategy.
PAA has NOTHING to do with essentially short term accumulation/consumption decisions.

Money you "need" for consumption over the next 5 years is short term money.

it is saved, not "invested".

However Your "needs" are essentially a down payment. it is perfectly rational for a young person to put money into tax advantaged savings and borrow the money for a house.
by Professor Emeritus
Mon May 18, 2015 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: How do Bogleheads (in general) plan to finance their healthcare for later life?
Replies: 34
Views: 8854

Re: How do Bogleheads (in general) plan to finance their healthcare for later life?

HSAs IIRC are not available if you are covered by any non HDHP health insurance or medicare.

That being said.

We have the FEHBP. and resources carefully held for LTC
by Professor Emeritus
Mon May 18, 2015 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: [Veterans who rec'd EMT training may be fast-tracked to civilian certification]
Replies: 34
Views: 8637

Re: Jobs for Retired Air Force (without degree)

jsl11 wrote:Every local fire department hires emergency medical technicians. This would seem to be a natural fit.
you will run into lawful age limitations on such hires for front line duty.
by Professor Emeritus
Mon May 18, 2015 6:45 pm
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 407
Views: 111047

Re: Do you think Ric Edelman is correct, never pay down mortgage

Plus, once you are retired, banks are not very willing to loan you money without any income. If you say you have a lot of money in investments, they might just ask why you aren't using it rather than getting a new mortgage. :oops: My bank is delighted to loan money with financial instruments as collateral Almost no one has discussed the percentage of your "assets" you can safely have in a house, which is the real driving issue. We are retired. Just did the numbers today. The present value of our pensions annuity and social security is 40% of our "assets" Our house is 15% Our portfolio assets are 45% House is paid off. A house that is 15% of your total assets is very reasonable. Many economists would consider 30% to be t...
by Professor Emeritus
Mon May 18, 2015 6:21 pm
Forum: Personal Investments
Topic: Newly retired couple are comfortable, but would like supplemental income
Replies: 6
Views: 2545

Re: Newly retired couple are comfortable, but would like supplemental income

If you are retired and you NEED the money, you buy an annuity. Shop around, get a good one.
tsp has competitive deals
http://www.govexec.com/pay-benefits/ret ... ies/30927/
by Professor Emeritus
Mon May 18, 2015 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: What's my best plan for my assets if I am disabled?
Replies: 10
Views: 1642

Re: What's my best plan for my assets if I am disabled?

GrandDesigns wrote:My background: I am in my mid 20s and single. Up to this point I have not taken death or disability planning very seriously. In regards to inheritance, since I have no dependents, I just set up parents and siblings as beneficiaries on life insurance payouts, etc. and was done with it. For disability, I left my mom as a joint account holder on my savings account so someone could access my funds if I was say, in a coma..
This is simply not enough

If you want someone to take care of you when you are disabled they need both medical and financial powers of attorney.
by Professor Emeritus
Mon May 18, 2015 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: [Veterans who rec'd EMT training may be fast-tracked to civilian certification]
Replies: 34
Views: 8637

Re: Jobs for Retired Air Force (without degree)

Crow Hunter wrote:
mech_engineer wrote:
alec wrote:What did your friend do in the air force? I ask because my father in law work for the Coast Guard for roughly 30 years, and then went back to work for the Coast Guard a a civilian.
Was an aeromedic in the Air Force. Couldn't tell you everything in detail as I do not know.
He should look into doing the same job as a civilian.

I know of a guy who is with the local air rescue/evac unit that makes a VERY good salary as a flight nurse. I figure he could do something similar with very little if any training.

We are also in the South East.
One unusual place to look. The Indian Health Service handles a lot of long distance medical evacuation both ground and air.
See what they are looking for.
by Professor Emeritus
Mon May 18, 2015 3:22 pm
Forum: Personal Investments
Topic: 30 years old, baby on the way, just starting out advice...
Replies: 16
Views: 3260

Re: 30 years old, baby on the way, just starting out advice...

Honestly truthfully, investing for the deep future is the least of your concerns.
My third grandchild was born on the highway on the way to the hospital
Babies have a way of changing lives
I'm going to shout
YOU DON'T HAVE A WILL
YOU DON'T HAVE LIFE INSURANCE
and you have a baby coming!!
At one point you say Wife has other plans lol.... ))
You say you are "renting" is that month to month or do you have renewal rights?
You do not want to ever house hunt with a new baby
As a 2 x father 3 x grandfather Married 40 years I suggest You have 2 months to GYST.

Good luck, happy baby.
by Professor Emeritus
Mon May 18, 2015 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: [Veterans who rec'd EMT training may be fast-tracked to civilian certification]
Replies: 34
Views: 8637

Re: Jobs for Retired Air Force (without degree)

furwut wrote:I don't know much about this but if your friend obtained a civil service job they would be allowed to count their 30 years of military service towards a civil pension as well? If so that would be a very strong incentive for me :happy :happy
Retired Military

Your military service is generally not creditable if you are receiving retirement pay for that service. (Exception: Your military service may be creditable if your retired pay is based on a combat-incurred disability or on reserve service.)

- See more at: http://www.fedsmith.com/2012/11/12/mili ... 63CK5.dpuf
by Professor Emeritus
Mon May 18, 2015 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: [Veterans who rec'd EMT training may be fast-tracked to civilian certification]
Replies: 34
Views: 8637

Re: Jobs for Retired Air Force (without degree)

Any veteran with any skills remotely related to health care should apply to the department of Veterans Affairs. I Had a student who had gone from being a bomb technician to maintaining ultrasound equipment.
by Professor Emeritus
Mon May 18, 2015 12:42 pm
Forum: Investing - Theory, News & General
Topic: Supreme Court to hear fiduciary duty/high cost funds case
Replies: 51
Views: 10323

Re: Supreme Court to hear fiduciary duty/high cost funds case

The SCOTUS dodged the primary question the participants had about the sponsor's fiduciary duty in the plan and ruled exclusively on the issue of timeliness. They sent it back to the 9th Circuit with orders to allow the suit to proceed. Good, but not great. I disagree The court made a substantive direction to 9th circuit. We believe the Ninth Circuit erred by applying a statutory bar to a claim of a “breach or violation” of a fiduciary duty without considering the nature of the fiduciary duty. The Ninth Circuit did not recognize that under trust law a fiduciary is required to conduct a regular review of its investment with the nature and timing of the review contingent on the circumstances. In determining the contours of an ERISA fiduciary’...
by Professor Emeritus
Mon May 18, 2015 12:07 pm
Forum: Investing - Theory, News & General
Topic: Supreme Court rules in favor of 401k participants who object to high fees
Replies: 35
Views: 9230

Re: Supreme Court rules in favor of 401k participants who object to high fees

Tibble should cause some employers to start paying attention to these issues, but the employees have not won anything yet. Tibble only holds that employees were not barred by ERISA's statute of limitations from suing in this case. Here's a very important quote from the opinion's syllabus (I haven't had time to read the entire opinion): "This Court expresses no view on the scope of respondents’ fiduciary duty in this case, e.g., whether a review of the contested mutual funds is required, and, if so, just what kind of review. A fiduciary must discharge his responsibilities 'with the care, skill, prudence, and diligence' that a prudent person 'acting in a like capacity and familiar with such matters' would use. §1104(a)(1)." On rema...
by Professor Emeritus
Mon May 18, 2015 11:52 am
Forum: Personal Finance (Not Investing)
Topic: liability question for inherited home
Replies: 18
Views: 2348

Re: liability question for inherited home

We insured a similar house under our our policy as an "other insured location" Full coverage for liability .

Bought a separate fire insurance policy for the house.
by Professor Emeritus
Mon May 18, 2015 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Maryland Taxpayers: Comptroller vs. Wynne ruling is out
Replies: 4
Views: 1702

Re: Maryland Taxpayers: Comptroller vs. Wynne ruling is out

While it's a Maryland case, the same laws exist in many other states
by Professor Emeritus
Mon May 18, 2015 10:09 am
Forum: Personal Consumer Issues
Topic: How fast should I ride my bicycle?
Replies: 64
Views: 20950

Re: How fast should I ride my bicycle?

The OP noted the route they took "This trail used to be a railroad track and was converted to a bike trail in my city's "rails to trails" program, so it relatively flat." To me, this means a wide, flat, no tight turns, paved path. That is, a fast path. . Our "rail to trails" have speed limits , since they are "used by all" Bicyclists should always wear a helmet and ride at speeds that do not exceed 12 miles per hour. Trails are shared recreation amenities and are accessed by a variety of users at the same time. Please be courteous to all users, and remember that pedestrians have the right-of-way . Never wear headsets. http://www.montgomeryparks.org/PPSD/ParkTrails/trail_symbols_files/trail_symbols.shtm
by Professor Emeritus
Mon May 18, 2015 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question about Restricted Application
Replies: 27
Views: 9957

Re: Social Security question about Restricted Application

ObliviousInvestor wrote:
hstang wrote:wolf 359: if you file a restricted application, then you are NOT entitled to your own old age benefit. That is my understanding.
This is correct. To be "entitled" to a benefit (as opposed to simply "eligible" for it), you must have filed for it.*

*Exception: If you are receiving a disability benefit when you reach your full retirement age, it automatically becomes a retirement benefit (i.e., you are suddenly entitled to a retirement benefit even though you have not filed for it).
It was in the material when DW applied so she could be described as having filed for it as part of the DR.
by Professor Emeritus
Sun May 17, 2015 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: adversarial inheritance situation - advice needed.
Replies: 23
Views: 5656

Re: adversarial inheritance situation - advice needed.

happyisland wrote:
Professor Emeritus wrote: :happy every third lexus in palm beach will be driven by an estate attorney :happy
Ain't that the truth! I just did a quick googling, and there is an insane abundance of professionals who help handle other people's money. I'm hoping someone can come up with a recommendation, because I would not know where to begin...
What I would do is call the U of Miami law school and ask a faculty member who teaches estates and trusts for a referral. They know who hires their top students. its not perfect, but it keeps you out of the hands of the real sleazebags.
by Professor Emeritus
Sun May 17, 2015 5:42 pm
Forum: Personal Consumer Issues
Topic: Rough cost to replace central A/C unit?
Replies: 9
Views: 3913

Re: Rough cost to replace central A/C unit?

In the DC area Rodents eating insulation and causing arcing is a common failure. Normally a few hundred dollars.
by Professor Emeritus
Sun May 17, 2015 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: adversarial inheritance situation - advice needed.
Replies: 23
Views: 5656

Re: adversarial inheritance situation - advice needed.

happyisland wrote:Well it seems like the solution is to hire an estate attorney and let them fight for the grandchild's interests. Two more questions:1) What is the best way to find and hire a solid estate attorney in Palm Beach County, Florida?
:happy every third lexus in palm beach will be driven by an estate attorney :happy
by Professor Emeritus
Sun May 17, 2015 3:51 pm
Forum: Personal Investments
Topic: Newly retired couple are comfortable, but would like supplemental income
Replies: 6
Views: 2545

Re: Newly retired couple are comfortable, but would like supplemental income

IMHO income needed by retired people should never ever ever be in stocks . Not in index funds or ETFs or any other bets in the casino
by Professor Emeritus
Sun May 17, 2015 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 46255

Re: How much does social security factor into your retirement income?

How much does social security factor into your retirement income ? A lot. For those who say SS factor is zero.......... better step up your saving. You'll probably need an extra cool million to replace it. burt One million sounds awfully high. When he proposed counting the value of SS as a bond, J Bogle estimated the average SS value per person at about $300K. Using admittedly simplified math, I have estimated my benefit to be worth about $450K, assuming I draw income between the ages of 70 and 85. I think, though don't have the inclination to research the matter, that the maximum value of SS for an individual person is about $600K, and that would be for the top earners. I have run the numbers and get 450-500K for each of my self and DW. S...
by Professor Emeritus
Sun May 17, 2015 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 46255

Re: How much does social security factor into your retirement income?

Confused wrote:None. I make my decisions based on the assumption that we will get zero from Social Security.
Do you do the same for government bonds? And stock dividends? etc
by Professor Emeritus
Sun May 17, 2015 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Buying house from family member
Replies: 13
Views: 3379

Re: Buying house from family member

I bought my house from my parents in 1977. It was offered to any of the kids. I paid FMV minus unneeded cost of sales 10%. I had 5 siblings who all got a share.(We had all worked on the house, even digging out the basement. The neighbor called us the "Chinese peoples army" . to get their share each sibling signed off that they had been treated fairly. We did a massive renovation in 87 and still live in the house.
by Professor Emeritus
Sun May 17, 2015 11:46 am
Forum: Personal Investments
Topic: Retirement and wealth management fees
Replies: 28
Views: 9983

Re: Retirement and wealth management fees

.
Quite simply you are in the hands of people who will happily charge you an arm and a leg for handholding
Simplify your life
I do not own a single investment that is not worth at least 500K

After that its a piece of cake
by Professor Emeritus
Sun May 17, 2015 6:06 am
Forum: Personal Finance (Not Investing)
Topic: Divorce and Marriage
Replies: 21
Views: 5591

Re: Divorce and Marriage

OK lets treat it simply as an investment decision. NB there is no way to index a marriage. You are putting everything you are investing into into one volatile investment Marriages exist on a continuum from " mutual soul-mates " to " two barely connected autonomous people" MS-----------------------------------------------------BCAP Sometimes a marriage changes from one place on the continuum to the another. People on the left ride out a tremendous market decline because they believe in "staying the course". They have faith and hope in the partnership People on the right Bail out quick if the market goes sour since they have confidence in their judgment and know when to hold them and know when to fold them. Only ...
by Professor Emeritus
Sat May 16, 2015 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 46255

Re: How much does social security factor into your retirement income?

DW is disabled Her SS is about half of her pension.
I am deferring My SS will be about half of my pension.
Our portfolio is about equal to the Actuarial value of the Pensions and SS.
So if we converted it all to income SS would be about 1/6 of the total.

in terms of expected spending its about 1/3
by Professor Emeritus
Fri May 15, 2015 6:28 am
Forum: Personal Finance (Not Investing)
Topic: SPIA for mom?
Replies: 33
Views: 4411

Re: SPIA for mom?

Independent wrote: The big risk is mortality improvements. This is complex, but I believe companies generally target a "good, risk aware" return on invested capital. If the expected happens, they will earn something comfortably above a risk free bond. If enough bad stuff happens, they don't earn anything. Defining "enough bad stuff" is where the art lies.
This is actually uncertainty, not risk. Firms reduce this uncertainty, at least in part, by also selling life insurance.
by Professor Emeritus
Fri May 15, 2015 6:12 am
Forum: Personal Finance (Not Investing)
Topic: SPIA for mom?
Replies: 33
Views: 4411

Re: SPIA for mom?

Life annuities are a form of longevity "insurance" . Insurance makes a lot of sense if the consequences of loss are disastrous, and no sense at all if the consequences are easily absorbed. Where you fool yourself is thinking you can invest the sum needed for delaying an SPIA in investments that are riskier than an SPIA.
by Professor Emeritus
Fri May 15, 2015 5:54 am
Forum: Personal Finance (Not Investing)
Topic: Where does everyone stand [Portfolio holdings]
Replies: 16
Views: 4411

Re: Where does everyone stand

miles monroe wrote:i have as much faith in the accuracy of annoymous people reporting their net worth on the internet about as much as i would if they were reporting the number of times they have sex in a week.
Annie Hall

[Alvy and Annie are seeing their therapists at the same time on a split screen]
Alvy Singer's Therapist: How often do you sleep together?
Annie Hall's Therapist: Do you have sex often?
Alvy Singer: [lamenting] Hardly ever. Maybe three times a week.
Annie Hall: [annoyed] Constantly. I'd say three times a week.
by Professor Emeritus
Thu May 14, 2015 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Executor of Will ignores instructions in will!
Replies: 21
Views: 8589

Re: Executor of Will ignores instructions in will!

So, by selling at half price, he effectively reduced the value of the asset by 100k (half of which would have been your wife's), but he also may have removed a 200K asset from the estate (again half of which would have been your wife's). So the damage is either 50k or 100k depending how you look at it. However, he also attempted (maybe succeeded) in defrauding the state by hiding assets that would otherwise have been consumed by medical expenses. You should have legal recourse to restore what your wife should have received if the brother had not hidden the asset nor sold it below market rate. Further, any fines he pays should come from HIS allocation and NOT from the total estate. read what the OP said At the reading of the will the house ...
by Professor Emeritus
Thu May 14, 2015 1:05 pm
Forum: Investing - Theory, News & General
Topic: CNBC Article...Active managers beating the market! (Well, almost)
Replies: 6
Views: 1773

Re: CNBC Article...Active managers beating the market! (Well, almost)

It is easy to show that bad managers substantially under perform the market.
A "good" manager should of course outperform the market year in and year out .
Otherwise its just cherry picking and silly
by Professor Emeritus
Thu May 14, 2015 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Federal disability retirement (FERS)
Replies: 3
Views: 1107

Re: Federal disability retirement (FERS)

retiredjg wrote:Good for you! Amazing you would even know about such a benefit - seems to have some strict limitations.
Its the standard disability retirement . They were simply using the wrong calculation for people in this group. To be truthful all kinds of people told me that it was a "you can't fight the Feds" type of case. So victory feels very very good.
by Professor Emeritus
Thu May 14, 2015 7:38 am
Forum: Personal Finance (Not Investing)
Topic: SPIA for mom?
Replies: 33
Views: 4411

Re: SPIA for mom?

magellan wrote: Expenses on SPIAs eat up 15% or more of the lump sum.
Please provide a cite. There is a vast literature on annuities and I've never seen anything like this.
by Professor Emeritus
Thu May 14, 2015 6:11 am
Forum: Investing - Theory, News & General
Topic: Gold vs offshore custodianship of stocks, bonds
Replies: 36
Views: 3980

Re: Gold vs offshore custodianship of stocks, bonds

Nonsense. You BARTER Cigarettes in prison. It does not make it currency False. Barter is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange . http://en.wikipedia.org/wiki/Barter People in prison WHO DO NOT SMOKE CIGARETTES will still use cigarettes as a medium of exchange, because they know that they can trade them to others, because they have intrinsic value (some people in prison are smokers). If ONLY the smokers traded cigarettes in prison, then you would be correct in calling them "barter". But that is not the case. You don't have to smoke to use cigarettes as barter . you don't have to be married to use wedding rings as barter It still barter....