Search found 3189 matches

by bsteiner
Sun May 27, 2018 11:02 am
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 50
Views: 8442

Re: Why Edward Jones?

... I am a single, recently-retired female and have many single/divorced/widowed friends. Every single one of them (except for me) has a financial adviser - although I don't know if any use EJ. I have tried to explain to them the benefits of DIY, but it has definitely fallen on deaf ears. (They als...
by bsteiner
Sun May 27, 2018 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Should I Leave Traditional IRA to Grandkids?
Replies: 20
Views: 1903

Re: Should I Leave Traditional IRA to Grandkids?

She should consider converting as much as she can each year at a tax rate less than, equal to, or not too much higher than the tax rate that would otherwise apply to the distributions. Leaving her IRA to or in trust for her grandchildren will provide a much longer stretch than leaving it to or in tr...
by bsteiner
Sat May 26, 2018 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Lump sum versus annuity - could use your insight.
Replies: 8
Views: 973

Re: Lump sum versus annuity - could use your insight.

The annuity from your workplace is better than what I saw in www.immediateannuities.com. ,,, The annuity through the plan is usually a better deal than what you could otherwise buy since the insurance company sells annuities at retail rates. The annuity through the plan guarantees the result. To th...
by bsteiner
Sat May 26, 2018 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?
Replies: 88
Views: 8873

Re: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?

There's a benefit to the liquidity. If you itemize, there's a tax arbitrage since the interest is deductible against ordinary income but much of the investment income is favorably taxes. A 3.625% interest rate is below market.
by bsteiner
Sat May 26, 2018 9:43 pm
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 50
Views: 8442

Re: Why Edward Jones?

... start coaching us to create a will and planning for inheritances, help us decide when best to start SS, decide if I should do Roth conversions, help us decide how to plan for the survivor, help with medicare decisions, what about LTC and CCRC decisions, taxes, when to retire... How much of this...
by bsteiner
Sat May 26, 2018 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: recommended Roth percentage of total investments
Replies: 17
Views: 2440

Re: recommended Roth percentage of total investments

As much as you can contribute or convert at a tax rate less than, equal to, or not too much higher than the tax rate you expect will apply to distributions.
by bsteiner
Fri May 25, 2018 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Selling ‘Gifted’ property
Replies: 7
Views: 1194

Re: Selling ‘Gifted’ property

If it's within 9 months from the first transfer, the child might be able to disclaim it, thus avoiding two taxable gifts. In this instance, I doubt there are any taxable gifts. For 2017, the gift tax exemption was $5.5M (IIRC) and has increased to $11M (IIRC) for 2018. The term "taxable gift" refer...
by bsteiner
Fri May 25, 2018 1:59 pm
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 50
Views: 8442

Re: Why Edward Jones?

... start coaching us to create a will and planning for inheritances, help us decide when best to start SS, decide if I should do Roth conversions, help us decide how to plan for the survivor, help with medicare decisions, what about LTC and CCRC decisions, taxes, when to retire... How much of this...
by bsteiner
Fri May 25, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: How do I tell if Roth conversions are worth the trouble?
Replies: 76
Views: 5643

Re: How do I tell if Roth conversions are worth the trouble?

... Now with the ridiculously large 24% tax bracket (which I'm already in), I can actually do a larger conversion this year, and maybe for a few years. ... Exactly the point I make in my article on this coming out in the June 2018 issue of Trusts & Estates: http://www.wealthmanagement.com/retiremen...
by bsteiner
Fri May 25, 2018 7:37 am
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 50
Views: 8442

Re: Why Edward Jones?

... start coaching us to create a will and planning for inheritances, help us decide when best to start SS, decide if I should do Roth conversions, help us decide how to plan for the survivor, help with medicare decisions, what about LTC and CCRC decisions, taxes, when to retire... How much of this...
by bsteiner
Thu May 24, 2018 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Selling ‘Gifted’ property
Replies: 7
Views: 1194

Re: Selling ‘Gifted’ property

If it's within 9 months from the first transfer, the child might be able to disclaim it, thus avoiding two taxable gifts.
by bsteiner
Thu May 24, 2018 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Anybody had CD with Columbia Bank, NJ
Replies: 12
Views: 726

Re: Anybody had CD with Columbia Bank, NJ

... found that Columbia Bank, NJ has rate of 2.96% (3.00% APY) for 36 month with premature penalty loss of 1 yr. We live in NJ. Does anybody have experience with the CD from this bank? It does not have a familiar brand like say Barclays bank or Goldman Sachs or Ally. It may not be as large as Barcl...
by bsteiner
Wed May 23, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Financial and retirement issues associated w/ moving to Canada
Replies: 11
Views: 828

Re: Financial and retirement issues associated w/ moving to Canada

... Update your will since a normal US will may not work well, if at all, in Canada. If you have assets in both countries then your estate might need to go through probate in both countries. ... While there may be some estate planning complexities, probating a Will in a U.S. state and a Canadian pr...
by bsteiner
Wed May 23, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Co-beneficiary on a bank CD: all beneficiaries must be present?
Replies: 8
Views: 520

Re: Co-beneficiary on a bank CD: all beneficiaries must be present?

Or don't name beneficiaries on your taxable account, and let your executors collect them in the ordinary course.
by bsteiner
Tue May 22, 2018 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Owner - how to build retirement wealth
Replies: 33
Views: 2892

Re: Small Business Owner - how to build retirement wealth

Notwithstanding the poor expected return from life insurance, it can be easier to administer a nonqualified deferred compensation plan if it's funded with life insurance. You might want to first look at whether you can accomplish your objective with a qualified plan. You may wish to consult with a g...
by bsteiner
Tue May 22, 2018 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Basics
Replies: 23
Views: 2021

Re: Estate Planning Basics

... Although the book was generally informative, and interesting (in a rather guilty-pleasure, soap-opera-watching, popcorn-eating sort of way), it never did really address our situation: second marriage for both, each with children from previous marriages, both with separate expected inheritances ...
by bsteiner
Tue May 22, 2018 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Basics
Replies: 23
Views: 2021

Re: Estate Planning Basics

You could include a disclaimer trust for the surviving spouse in case the surviving spouse waives anything passing to him or her upon the first spouse's death. Bruce, are you saying that a surviving spouse can't disclaim unless they have a disclaimer trust?? 1210 No. But the spouse may not be willi...
by bsteiner
Mon May 21, 2018 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Do we need a trust?
Replies: 16
Views: 2101

Re: Do we need a trust?

... -65% of assets are in IRAs which complicates trust document setup and taxes. There seems to be numerous “gotchas” with tax rules. The trust document would have to be carefully crafted ..s. -Probate in NC is relatively straightforward and we are not concerned about it. -Special needs trust will ...
by bsteiner
Mon May 21, 2018 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Basics
Replies: 23
Views: 2021

Re: Estate Planning Basics

Read: Books on Wills, Trusts, and Estates ... Thanks for the book recommendation, I just ordered it. While that book is popular here, keep in mind that the author is in California, so much of what he writes is geared to community property states, particularly California. Also note that he focuses o...
by bsteiner
Sat May 19, 2018 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Wells Fargo Advisors (WFA) Transfer On Death (TOD)
Replies: 25
Views: 1641

Re: Wells Fargo Advisors Transfer On Death (TOD)

It would have been simpler without the transfer on death designation. With a death certificate and a court certificate evidencing their appointment, the executors could have collected the assets. Thanks bsteiner! I will consider that in my own planning! TODs are nice to avoid probate; I didn't know...
by bsteiner
Sat May 19, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need a trust?
Replies: 16
Views: 2101

Re: Do we need a trust?

... I am thinking more about a major lawsuit. We have a $3M umbrella which should cover almost anything that could happen. Nonetheless, would like to protect at least some of our assets from such things. ... You could create an asset protection trust in a state such as Alaska, Delaware, Nevada or S...
by bsteiner
Sat May 19, 2018 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Wells Fargo Advisors (WFA) Transfer On Death (TOD)
Replies: 25
Views: 1641

Re: Wells Fargo Advisors Transfer On Death (TOD)

It would have been simpler without the transfer on death designation. With a death certificate and a court certificate evidencing their appointment, the executors could have collected the assets.
by bsteiner
Fri May 18, 2018 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need a trust?
Replies: 16
Views: 2101

Re: Do we need a trust?

Trusts are tools. In order to know whether you need a fork or a spoon or whether you can eat with your hands, we would need to know what food you're eating. Given your assets, you probably wouldn't be giving away assets to save estate taxes. Nor, given your assets, pension and Social Security, would...
by bsteiner
Fri May 18, 2018 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Basics
Replies: 23
Views: 2021

Re: Estate Planning Basics

My wife and I are about to turn 45 with two young children of ages 8 and 6 years, and we have started to think about estate planning issues in the unfortunate and hopefully unlikely event that we were both to die or both be incapacitated somehow in making financial decisions, e.g. through a grave i...
by bsteiner
Fri May 18, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Fund picks for inherited non-qualified stretch annuity?
Replies: 3
Views: 197

Re: Fund picks for inherited non-qualified stretch annuity?

There's often no good solution to an investment-type annuity. If you keep it, you'll continue to incur the expenses of the annuity (though at a much reduced level if you move it to Vanguard), and you'll turn the future investment income and gains into ordinary income. If you cash it in, you'll accel...
by bsteiner
Thu May 17, 2018 10:50 am
Forum: Personal Finance (Not Investing)
Topic: LLC taxed as an S Corp
Replies: 5
Views: 493

Re: LLC taxed as an S Corp

We had one involving a sale of a building. If the buyer were taxable as a partnership, it would have been a sale between related partnerships, and the gain would have been ordinary income under Section 707(b)(2). So we wanted the buyer to be taxable as an S corporation. While it's usually easier to ...
by bsteiner
Thu May 17, 2018 8:04 am
Forum: Investing - Help with Personal Investments
Topic: Large Personal Injury Settlement
Replies: 58
Views: 4920

Re: Large Personal Injury Settlement

... I opted not to do a structured settlement. I believe I can get a higher return managing the money myself instead of being stuck with 4% a year gains. Inflation eats that up quickly. My lawyer suggested it, citing many people my age would hastily lose most of the money, but I'm confident with th...
by bsteiner
Mon May 14, 2018 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Trusts and Special Needs
Replies: 13
Views: 784

Re: Qualified Trusts and Special Needs

... Maybe our only option is to include language in the SNT that handles IRA distributions differently from other property — so that the retirement distributions the trustee receives will be held separately and never pass to a charitable or elderly beneficiary? That's the most common approach. Each...
by bsteiner
Mon May 14, 2018 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to define "rich"?
Replies: 32
Views: 2267

Re: Best way to define "rich"?

If you can afford to buy the Tropicana even if the other brand of orange juice is on sale.

If you can afford to order the special in a restaurant without having to ask how much it costs.

If you can afford to retire.
by bsteiner
Mon May 14, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Financial Advice for Federal Employee
Replies: 10
Views: 901

Re: Financial Advice for Federal Employee

A small change in the assumptions can result in a large change in the results over a very long time period.
by bsteiner
Sun May 13, 2018 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Trusts and Special Needs
Replies: 13
Views: 784

Re: Qualified Trusts and Special Needs

... Maybe our only option is to include language in the SNT that handles IRA distributions differently from other property — so that the retirement distributions the trustee receives will be held separately and never pass to a charitable or elderly beneficiary? That's the most common approach. Each...
by bsteiner
Sun May 13, 2018 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Special needs inheritance situation: whole life insurance?
Replies: 6
Views: 920

Re: Special needs inheritance situation: whole life insurance?

She'll come out better with the life insurance if she dies substantially before life expectancy. She'll be better off without the life insurance if she lives close to, to, or beyond life expectancy. She should (in her Will) provide for her children in trust rather than outright, to keep her children...
by bsteiner
Sun May 13, 2018 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Trusts and Special Needs
Replies: 13
Views: 784

Re: Qualified Trusts and Special Needs

...What I’m still not totally clear on, and it’s more of a Medicaid /SSI question vs a legal estate planning question, is how much of the RMD is considered as “income” for govt benefits purposes. From an attorney comment quoted above, it sounds like it is the unspent amount. With a decent size bala...
by bsteiner
Sun May 13, 2018 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: How to find reputable person for Will/Trust?
Replies: 41
Views: 3075

Re: How to find reputable person for Will/Trust?

In researching conduit vs accumulation for special needs trusts (other thread) i stumbled upon this site that purports to have a “toggle switch” between conduit and accumulation. http://ultimateestateplanner.com/2016/11/01/ira-trusts-conduit-or-accumulation/ I think this is what we've been discussi...
by bsteiner
Sun May 13, 2018 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Trusts and Special Needs
Replies: 13
Views: 784

Re: Qualified Trusts and Special Needs

Piggy backing off the side conversation about qualified trusts in the estate planning attorney thread, would the income from traditional IRA distributions in a conduit qualified SNT trust potentially endanger SSI and Medicaid eligibility, since the RMD income is recognized by the beneficiary outsid...
by bsteiner
Sun May 13, 2018 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: How to find reputable person for Will/Trust?
Replies: 41
Views: 3075

Re: How to find reputable person for Will/Trust?

... If the goal is to have retirement account RMDs go to the benefit of the beneficiary but with the beneficiary never owning the money, then an accumulation trust is the way to go. Just recognize that 1. You need estate attorneys who know what they are doing 2. There is some risk that the IRS may ...
by bsteiner
Sun May 13, 2018 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Moving Assets into an Irrevocable Trust
Replies: 5
Views: 494

Re: Moving Assets into an Irrevocable Trust

The trustee is the legal owner, in his/her capacity as trustee. The beneficiaries of the trust are the beneficial owners. Revocable trusts make sense in some cases, and in some states, though for most people in most states they're not necessary. They're not commonly used in New York. In most cases, ...
by bsteiner
Sun May 13, 2018 10:02 am
Forum: Personal Finance (Not Investing)
Topic: How to find reputable person for Will/Trust?
Replies: 41
Views: 3075

Re: How to find reputable person for Will/Trust?

There is no litmus test or easy answer. Several people have suggested one credential or another. There are good lawyers with each of these credentials (and others not mentioned in this thread), but there are also lawyers with each of these credentials whom I would prefer to have an an adversary than...
by bsteiner
Sat May 12, 2018 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on building a timeless mens wardrobe?
Replies: 65
Views: 4755

Re: Advice on building a timeless mens wardrobe?

The high end stores have major sales in June/July and in December/January.
by bsteiner
Thu May 10, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: How to pass life insurance proceeds from my parents' second to die policy on to my children tax free?
Replies: 17
Views: 1077

Re: How to pass life insurance proceeds from my parents' second to die policy on to my children tax free?

If they want to give each child the option of taking his/her share or letting his/her share go to his/her children, they could name their issue per stirpes as the beneficiaries. That way, if a child disclaims, his/her share would go to his/her children. If they're elderly, do they still need life i...
by bsteiner
Thu May 10, 2018 10:39 am
Forum: Personal Finance (Not Investing)
Topic: How to pass life insurance proceeds from my parents' second to die policy on to my children tax free?
Replies: 17
Views: 1077

Re: How to pass life insurance proceeds from my parents' second to die policy on to my children tax free?

If they want to give each child the option of taking his/her share or letting his/her share go to his/her children, they could name their issue per stirpes as the beneficiaries. That way, if a child disclaims, his/her share would go to his/her children. If they're elderly, do they still need life in...
by bsteiner
Wed May 09, 2018 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Lost Beneficiaries - T. Rowe Price
Replies: 24
Views: 1657

Re: Lost Beneficiaries - T. Rowe Price

That's backwards. It's usually best to name beneficiaries for retirement benefits but not for taxable accounts (so the taxable accounts pass under the Will). What is the benefit of this? Piecemeal or asset by asset planning creates lots of problems. Different assets can change in value over time, o...
by bsteiner
Wed May 09, 2018 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Lost Beneficiaries - T. Rowe Price
Replies: 24
Views: 1657

Re: Lost Beneficiaries - T. Rowe Price

That's backwards. It's usually best to name beneficiaries for retirement benefits but not for taxable accounts (so the taxable accounts pass under the Will).
by bsteiner
Wed May 09, 2018 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust question for kids
Replies: 23
Views: 1909

Re: Will/Trust question for kids

You don't know what the future will bring. The best you can do is to select trustees whose judgment you trust, and give them discretion to do what they think best from time to time. Whenever someone mandates or restricts distributions, it's likely to cause a problem they couldn't anticipate.
by bsteiner
Wed May 09, 2018 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Pension. Lump sum or monthly payments.
Replies: 10
Views: 962

Re: Pension. Lump sum or monthly payments.

... The reasonable comparison is what an equivalent SPIA purchased on the open market would bring. Assuming you might otherwise consider buying one. I'm not sure I understand the point. The MIL has to choose either a pension or a lump sum. She is considering one or the other. You are correct that s...
by bsteiner
Wed May 09, 2018 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Pension. Lump sum or monthly payments.
Replies: 10
Views: 962

Re: Pension. Lump sum or monthly payments.

Earl Lemongrab wrote:
Wed May 09, 2018 1:03 pm
...
The reasonable comparison is what an equivalent SPIA purchased on the open market would bring.
Assuming you might otherwise consider buying one.
by bsteiner
Wed May 09, 2018 9:31 am
Forum: Personal Consumer Issues
Topic: Rental Cars:National, Budget, Alamo or Thrifty
Replies: 33
Views: 1485

Re: Rental Cars:National, Budget, Alamo or Thrifty

Some of them are under common ownership.

Which is less expensive will vary.

There are often discounts: Costco, BJs (similar to Costco but not in every part of the country), AARP, professional organizations.
by bsteiner
Tue May 08, 2018 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking proactive suggestions for Successor Trustee and scattered stocks
Replies: 3
Views: 311

Re: Seeking proactive suggestions for Successor Trustee and scattered stocks

There was probably no need for the revocable trust. Unlike some states, probating a Will in Florida is not particularly difficult, expensive or burdensome. We probate lots of Wills throughout Florida from our office in New York. The papers are the same in all counties, and they're filed electronical...
by bsteiner
Tue May 08, 2018 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust question for kids
Replies: 23
Views: 1909

Re: Will/Trust question for kids

... We also set up that they would receive any proceeds at age 25, but I've been meaning to change that to 30 or 35. Instead of mandating distribution, you might provide that each child gets to control his/her trust at that point. For this purpose, control means that the child can become a trustee,...