Search found 1914 matches

by MN Finance
Thu Mar 14, 2024 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Individual Trusts (step up at death)
Replies: 3
Views: 372

Re: Individual Trusts (step up at death)

Revocable trusts make sense in some cases and in some states. If there's a reason for revocable trusts in their case or in their state, then since they're not in a community property state, they would have separate revocable trusts unless they have community property from when they lived in a community property jurisdiction. What state are they in? Is there a reason for revocable trusts in their case, or in their state? About 30 years ago, Paul Fletcher, an attorney in Oregon, wrote a few articles suggesting a joint revocable trust in a common law state to be able to use the same assets to fund the credit shelter trust regardless of which spouse died. He also suggested you might get a basis step-up at the first spouse's death. A couple of ...
by MN Finance
Thu Mar 14, 2024 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Individual Trusts (step up at death)
Replies: 3
Views: 372

Individual Trusts (step up at death)

I'm pretty involved in my parents affairs as they're in their 80's, and I have a background in finance. They have an estate which is currently below the state estate tax limits in the non-community property state they live in. Recently they went to an attorney to establish new documents. The attorney set up individual trusts, rather than a joint trust. While there are probably some benefits to individual trusts for some families, I don't think any of those benefits really apply in this case, and I'm generally against individual trusts. I had originally intended on pushing back on this, but I'm not sure it's worth upsetting anyone in the process, so I might just leave it. My only real question is if this impacts their step-up at first and/or...
by MN Finance
Tue Oct 10, 2023 9:01 pm
Forum: Personal Investments
Topic: Thoughts on generating passive income from $500k?
Replies: 82
Views: 12898

Re: Thoughts on generating passive income from $500k?

Wow! I would have never guess you are running a business with 15 employees. You’re doing ten of millions of dollars in profit! What book are you sending out to new dentists and doctors, and why are you doing it? Where can I find more information on scholarships you endow? If it’s not online can you provide it here? You must be really fun at parties. While I appreciate the "pitchforks approach" towards anyone that sells anything financial, even someone like WCI that constantly contributes free content to the community - keep in mind it's called capitalism - he has bills, as does his staff. If you don't buy it great (as many of us wont), and pretty sure he said multiple times that is fine. How about you stay on topic? +1
by MN Finance
Tue Oct 10, 2023 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage questions on new house
Replies: 16
Views: 1785

Re: Mortgage questions on new house

If I could guarantee your brokerage account would gain 7.5% over the next 20 years with zero risk, would you take it? If not, then ok. But if you'd consider it, then do it. You can cash out refi later when rates are low and put it into the market.
by MN Finance
Tue Oct 10, 2023 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Trust as IRA Benficiary
Replies: 7
Views: 820

Re: Trust as IRA Benficiary

Schwab won't do it. If you don't want to withdraw it and distribute cash & issue K9's, then your options are: a) Keep the revocable trust open (I wouldn't) and you four will have to coordinate withdrawals which would then go to the four sub trusts. b) Transfer it to a friendlier institution who will split it further. The last time I dealt with Schwab the trustee decided to distribute cash, so I cannot advise you as to the options for B. Try Vanguard and Fidelity as discussed above. FWIW, Schwab cites some PLR or ruling and says it's unclear from that PLR or ruling that they have the authority to split a trusteed inherited IRA. Again, it's easier to move institutions than to fight with the policy decisions of the institution, but that's...
by MN Finance
Tue Oct 10, 2023 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Trust as IRA Benficiary
Replies: 7
Views: 820

Re: Trust as IRA Benficiary

bsteiner wrote: Tue Oct 10, 2023 8:47 am The trustees may distribute the inherited IRA in kind to beneficiaries of the revocable trust (if and to the extent permitted by the terms of the revocable trust).
When you say in-kind, you mean into individual inherited IRAs, I assume?
bsteiner wrote: Tue Oct 10, 2023 8:47 am If the IRA custodian won't cooperate, the trustees may want to move the inherited IRA to a friendlier custodian.
It's Schwab, but I haven't really gotten this to their legal team, as I wanted some good info in advance. I'm not sure how to direct them, as they've said it needs to be in the trust.

Thanks you kindly - appreciate that you're the one who chimed in.
by MN Finance
Tue Oct 10, 2023 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Trust as IRA Benficiary
Replies: 7
Views: 820

Trust as IRA Benficiary

I know I researched this extensively years ago, but can't see to track down those details. Can someone point me to the appropriate resource?

If an IRA owner passed away with their revocable trust as the sole beneficiary, what options do the trust beneficiaries have?
  • The trust appears to qualify as see-through with 4 individual beneficiaries
  • The decedent was over age 73
The custodian is telling us that the trust must be the new account owner and the assets cannot be segmented for each beneficiary. This isn't terrible, but presumably we must each take future RMDs (over 10 years) in a coordinated fashion. This isn't preferred.

Thanks for any expert tips... much appreciated, as always.
by MN Finance
Sat Sep 09, 2023 9:14 am
Forum: Investing - Theory, News & General
Topic: Is CHARLES SCHWAB In Financial Trouble - Your Thoughts on the Subject??
Replies: 95
Views: 19004

Re: Is Schwab in Trouble?!

If Schwab goes bankrupt due to rate changes, ... I have no idea how rate changes could blow up Schwab Brokerage. Yeah, rate changes could blow up Schwab Bank NA. And that could blow up Schwab Corp, the parent corporation. And then Schwab Corp would have to sell off its crown jewel, Schwab Brokerage is some other brokerage. Here is a fair amount of risk in the market. No reason why we should add on free floating anxiety on top of that. I don't agree at all that Schwab is in trouble... but they could "blow up" because they are first and foremost a bank. They make their money on the sweep deposits in the accounts which go to the bank side. If there's a run on the bank (which there has been) and rates rise, that's bad news. Again, I ...
by MN Finance
Thu Sep 07, 2023 8:38 pm
Forum: Personal Investments
Topic: What am I missing - AVIE?
Replies: 14
Views: 1760

Re: What am I missing - AVIE?

Seems obvious to me, but its really speculation.... Aventis is competing in the RIA space against DFA. This fund appears to me to be entirely designed for a retail consumer as an RIA would not include it. As such you have much lower adoption/ volume.
by MN Finance
Wed Sep 06, 2023 4:23 pm
Forum: Personal Investments
Topic: Wells Fargo vs. Fidelity for advisor expertise
Replies: 19
Views: 2668

Re: Wells Fargo vs. Fidelity for advisor expertise

I would prefer Fidelity over Wells, as you are less tied into the individual advisor and more tied into the firm. That said, you should 100% stay out of this... all risk, no reward for you and your relationship.

Robo advisor would be the worst of all worlds, BTW, with Vanguard a close second.
by MN Finance
Wed Sep 06, 2023 3:49 pm
Forum: Personal Investments
Topic: How to find a flat fee advisor?
Replies: 16
Views: 2678

Re: How to find a flat fee advisor?

Finding someone who 1) has decades of experience, 2) shares a Boglehead philosophy, and 3) charges hourly, will be a near-impossible task. I would "interview" some independent advisors under the premise that you are currently self-directed and are considering partnering with a professional either now, or at some point in the future (don't need to explain your intentions beyond that.) Nearly all advisory firms receive nearly all their compensation managing portfolios, but high quality firms will spend time with you up front putting a plan in place, or most certainly answering your questions. As long as you make your intentions clear, you'll get a few to help, which will be valuable to you and also give you a relationship should you...
by MN Finance
Wed Sep 06, 2023 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Estate tax planning and Roth conversion considerations
Replies: 34
Views: 2295

Re: Estate tax planning and Roth conversion considerations

I'm going to start with a question. Say your estate is subject to a whopping percentage of tax. So what? It's still going to be a staggering amount of money in the estate. I've read this post twice and can't help but respond. This is just a totally ridiculous position to take. By this measure, why don't you invest your money in active funds with 2% expense ratios. If your needs are covered and the kids will get money, who cares about the rest? Ok, so on to Roth vs tIRA. For an estate, it doesn't matter. It's value of the estate that matters. Roth, 401k, tIRA, gold bars, a 1987 Ferrari 308. The values get added up and that's what counts. To make that number smaller, I don't know....buy a Maserati every year since they depreciate like a rock...
by MN Finance
Wed Sep 06, 2023 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity Allocations?
Replies: 22
Views: 1599

Re: Annuity Allocations?

Jack FFR1846 wrote: Wed Sep 06, 2023 8:39 am It really doesn't matter. Those S&P numbers show me that they are taking the dividends and some hefty fees. 4% year to date on the S&P 500? Where did the rest of the 12% go?

Surrender. Today.
I'm not saying it's a good product, but this is simply reactionary and without context or thought.
by MN Finance
Wed Sep 06, 2023 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity Allocations?
Replies: 22
Views: 1599

Re: Annuity Allocations?

This is the letter they send just prior to the anniversary. You should allocate your money to the S&P500 Annual PTP (CAP,) which is the 3rd one on the list. This is the easiest to understand. You will get a return between 0% and 4% based on the change in value of the S&P index (not including dividends) between your anniversary dates. I created a backtesting tool years ago (which is outdated now) but the average 10 year return with this cap would be about 2.6% (with the range being 1.3% to 4.0% over 10 years.) You could consider surrendering the annuity, but 8% is a pretty heavy price, so it might be worth waiting (depending on what the rest of your finances look like.) At a minimum, you can always draw the amount of money annually t...
by MN Finance
Sun Sep 03, 2023 9:50 am
Forum: Personal Investments
Topic: Is an annuity logical in this situation?
Replies: 31
Views: 3168

Re: Is an annuity logical in this situation?

brocker wrote: Sun Sep 03, 2023 9:43 am I am a little confused about why this can’t be setup before death, but she is talking to hear lawyer soon and hopefully that will be cleared up some.
You can write the provision into the will or trust that the executor or trustee should be instructed to buy an immediate annuity with mom's estate proceed at death. That's what you want/need to do. You can't FUND the annuity prior to death, so the ultimate purchase comes later. This is because 1) you can't set up an annuity now that correctly limits the beneficiary's (brother) settlement choices at mom's death, and 2) the entirety of mom's assets practically speaking can't be moved into an annuity now.
by MN Finance
Sun Sep 03, 2023 8:05 am
Forum: Personal Investments
Topic: How much do I roth convert?
Replies: 12
Views: 1260

Re: How much do I roth convert?

Honestly, I'm not sure how much it matters, but overall this sounds like a good plan. The marginal dollars are coming out at 22% or 24% either way, so taxes will be about the same. The benefit to converting is that the money ends up in your Roth vs. a taxable account if you just let your RMD surplus happen. I would convert through the 22%, but don't know how aggressive to be in the 24%. Converting through the 24% bracket also comes with an increase in state tax and, as mentioned by someone else, an increase in Medicare premiums... not a lot, but that means 24% conversion is about 5% more than 22% (or whatever the math is.)
by MN Finance
Sun Sep 03, 2023 7:45 am
Forum: Personal Investments
Topic: Is an annuity logical in this situation?
Replies: 31
Views: 3168

Re: Is an annuity logical in this situation?

Giving people money via a spia doesn’t change the fact “he isn’t good with money”. He can easily sell the spia or get loans and still blow it all. Nothing is really solving the problem. You buy a spia bc you want lifetime income not bc you think it will change a lifetime of behavior bc it won’t They are not buying the SPIA to help the beneficiary with money. They want to relieve the trustee burden, which is a real and important goal that is solved. No part of the post is looking for personal finance guidance for the brother. Another reason I like the trust that has language that absolves your wife of latitude is you are able to include a clause in the trust with things like grandchildren education and medical crisis for an extra disburseme...
by MN Finance
Sun Sep 03, 2023 7:21 am
Forum: Personal Investments
Topic: TIAA Traditional: SECURE 2.0 makes annuitization even MORE attractive
Replies: 38
Views: 7110

Re: TIAA Traditional: SECURE 2.0 makes annuitization even MORE attractive

First, I have a question. Forgive me for not being up to date on 2.0, but are you saying that the income payments.from partial annuitization go towards satisfying the RMD on the unused portion of the account? If that's true, does the custodian impute a present value on the annuities balance or somehow let you know what the excess is?

I don't think anyone responded to your personal details because (for me) the premise of it all wasn't clear.
by MN Finance
Sat Sep 02, 2023 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: If you have a high income ($500K+), how did you do it?
Replies: 190
Views: 23879

Re: If you have a high income ($500K+), how did you do it?

Most would be small business owners.... many industries, or successful sales people.... many industries.
by MN Finance
Sat Sep 02, 2023 4:24 pm
Forum: Personal Investments
Topic: TIAA [Help with inherited accounts]
Replies: 13
Views: 1877

Re: TIAA [Help with inherited accounts]

TIAA SIP account What is that? A Google search for that phrase didn't turn up anything."SIP account" only gives me stuff about voice over internet. There is very little information about the TIAA Savings & Investment Plan on the Internet. The search results are mostly 403(b) plans that are called Flagship State University Savings & Investment Plan, but these are not actually what TIAA calls the SIP. TIAA uses SIP to refer to annuity contracts that are paying death benefits. I think most or all SIPs are Minimum Distribution Annuities because if they were life annuities, then they wouldn't be SIPs. Every time I've seen someone talk about an SIP, it's been an MDA. However, there's so little information about SIPs that I may ...
by MN Finance
Sat Sep 02, 2023 4:12 pm
Forum: Personal Investments
Topic: Should we expect VT to beat inflation long term at today's levels after tax?
Replies: 54
Views: 6228

Re: Should we expect VT to beat inflation long term at today's levels after tax?

According to Vanguard, neutral CAPE is 24. With CAPE currently at 31 US equities are 30 percent overvalued. This would be the same percentage overvaluation as having a neutral CAPE of 16 and a CAPE of 21. The current US market isn't as overvalued as it was in 2000 when it took two bear markets to get back to neutral. A 23 percent drop from here and we would be at neutral. That is all just to say while the US market is overvalued, it isn't as overvalued as it has been in the past and neutral isn't as low as the historical average might suggest, at least according to Vanguard. But what about the US commercial real estate market and would XUS stock follow US stock down and etc etc etc... I'm not disagreeing with your conclusion that US equiti...
by MN Finance
Sat Sep 02, 2023 3:40 pm
Forum: Personal Investments
Topic: Is an annuity logical in this situation?
Replies: 31
Views: 3168

Re: Is an annuity logical in this situation?

These are not good replies, despite the highly respected contributors. Forest, trees. Buying an immediate annuity with estate proceeds, as long as done correctly is absolutely a viable option. This absolutely solves the question you are posing, which is how to stay out of the trustee game. You will not, however, be able to set this up prior to death. Though there are some companies which have restricted settlement options ultimately the beneficiary still retains control. The provision should be written into the will or trust for you wife to execute. This is something to discuss with her attorney. The goal is precisely to avoid flexibility, so that's not a downside. The goal is NOT to beat inflation... as this is not an investment question a...
by MN Finance
Sat Sep 02, 2023 3:15 pm
Forum: Personal Investments
Topic: Should we expect VT to beat inflation long term at today's levels after tax?
Replies: 54
Views: 6228

Re: Should we expect VT to beat inflation long term at today's levels after tax?

In my case, I got laid off from a top tech job, liquidated RSUs (ow), and am pretty committed to the idea of buy and hold with ETFs after spending time and learning the past few years, but with such a sizable sum saved over 10 years and uncertainty regarding valuations, it's a heavy gulp in terms of principal protection. Right now I'm DCA-ing $5k of savings weekly into VTI/VEA/VWO. I might use managed futures on the IRA side as a hedge. Time horizon is still 30 years. Also trying to think of other unique ways to use this capital, maybe through a venture of my own. Cash balance in taxable is around 1m. This is different than your original question. If you believe in efficient markets, then equities REQUIRE a higher return (inflation adjuste...
by MN Finance
Sat Sep 02, 2023 3:09 pm
Forum: Personal Investments
Topic: I decided to put about 24% of my equity holdings into top "tech" stocks
Replies: 108
Views: 13123

Re: I decided to put about 24% of my equity holdings into top "tech" stocks

certainly make a case for big getting bigger The biggest companies indefinitely continuing to get bigger at a faster rate than the smaller companies do is a mathematical impossibility. It's only possible up to a point at which time there is only one company left. If absolute return is your main goal, the questions worth thinking about are can you change the weights in such a way as to do better that market weight and can you do so within your investment horizon. The answer to the first question is an unequivocal "yes". Current earnings across large and small capitalizations have grown at reasonably the same pace in recent years. Large cap multiples are mostly expanding driving higher returns. It could be that earnings growth slow...
by MN Finance
Sat Sep 02, 2023 9:20 am
Forum: Personal Investments
Topic: I decided to put about 24% of my equity holdings into top "tech" stocks
Replies: 108
Views: 13123

Re: I decided to put about 24% of my equity holdings into top "tech" stocks

All jokes aside. As much as I agree with the original point of the post, I wonder if structurally things are different this time. On a macro level, slowing population growth, higher global taxes, increase in reliance on technologies, etc., certainly make a case for big getting bigger and rich getting richer. Not saying small premiums go away, but a decade of recency bias aside, the case could be made.
by MN Finance
Sat Sep 02, 2023 9:04 am
Forum: Personal Consumer Issues
Topic: Tesla Model X price drop: thoughts?
Replies: 102
Views: 10034

Re: Tesla Model X price drop: thoughts?

If you had previously felt the X didn't have the needed value to trigger a purchase, then certainly this massive price drop would give you the needed value. If this drop still isn't enough, then you wouldn't buy it anyway. I bought an S and have buyers remorse given the price change, but the utility of that purchase remains the same regardless. I have zero regrets and would change nothing. Car seats work as well in these cars as any... unless you are trying to put 3 seats in one row, I've never noticed a difference in carseats between any cars we've owned. Financing rates are right on their website, and convenience alone would demand you don't get 3rd party financing, but go through their channels. You buy the car on your phone in 10 minute...
by MN Finance
Thu Aug 31, 2023 6:14 pm
Forum: Personal Investments
Topic: TIAA traditional
Replies: 28
Views: 1951

Re: TIAA traditional

1) The guess was made by aristotelian, NOT me. I am also not being difficult but the guess was not made by me. 2) When aristotelian made the statement "There is probably a lump sum option (I would guess with a steep penalty) etc," he/she also asked about which version OP has. I interpreted the statement as referring to the illiquid version. I see now that you interpreted the statement for the liquid version. I do not see where OP indicated which version he/she has. You simply stated "You'd guess wrong." Without extra information, it is difficult for me to tell what you are objecting to. (Given that I interpreted the statement referring to the illiquid version, I thought you were saying that there is no possible lump sum...
by MN Finance
Thu Aug 31, 2023 12:10 pm
Forum: Personal Investments
Topic: TIAA traditional
Replies: 28
Views: 1951

Re: TIAA traditional

I think for TIAA Traditional, it is difficult to know. Even the illiquid SRA has a lump sum option under certain conditions. https://www.tiaa.org/public/retire/financial-products/annuities/retirement-plan-annuities/tiaa-traditional-annuity/contract-rules "Lump sum withdrawals are available within 120 days of termination of Employment with a 2.5% surrender charge. All other transfers and withdrawals must be paid in 10 annual installments (not subject to a surrender charge)." I am not saying one way or the other whether an inherited TIAA Traditional has this option. I'm pretty sure MN Finance is correct here. For an inherited account that has not yet been moved into the beneficiaries name, I think there is no surrender charge. One ...
by MN Finance
Thu Aug 31, 2023 9:50 am
Forum: Personal Investments
Topic: TIAA traditional
Replies: 28
Views: 1951

Re: TIAA traditional

There is probably a lump sum option (I would guess with a steep penalty) etc. You'd guess wrong. I think for TIAA Traditional, it is difficult to know. Even the illiquid SRA has a lump sum option under certain conditions. https://www.tiaa.org/public/retire/financial-products/annuities/retirement-plan-annuities/tiaa-traditional-annuity/contract-rules "Lump sum withdrawals are available within 120 days of termination of Employment with a 2.5% surrender charge. All other transfers and withdrawals must be paid in 10 annual installments (not subject to a surrender charge)." I am not saying one way or the other whether an inherited TIAA Traditional has this option. I'm pretty sure MN Finance is correct here. For an inherited account th...
by MN Finance
Thu Aug 31, 2023 8:45 am
Forum: Personal Investments
Topic: TIAA traditional
Replies: 28
Views: 1951

Re: TIAA traditional

aristotelian wrote: Thu Aug 31, 2023 8:05 am There is probably a lump sum option (I would guess with a steep penalty) etc.
You'd guess wrong.
by MN Finance
Thu Aug 31, 2023 7:40 am
Forum: Personal Investments
Topic: Considering an SMA to address potential troubled waters ahead in the muni market
Replies: 13
Views: 1245

Re: Considering an SMA to address potential troubled waters ahead in the muni market

Thank you for the replies, everyone. @beyou, thank you for the industry insider view. Not a lot of love for getting an SMA for the reasons I was considering. Searching the forum it looks like the general preference is for VNYUX over NYF (ETF) due to the expense ratio. Are people not afraid of panic selling into illiquid markets by others in the fund? Educate me. What is "an SMA"? Separately Managed Account. You pay a manager to essentially run a fund inside of your own brokerage. A cousin is direct indexing. It’s extremely beneficial for tax loss harvesting, although you have to be ultra/high net worth to have the benefits outweigh the complexity. Is the tax loss harvesting benefit large for bonds as well as stocks? If so, perhap...
by MN Finance
Thu Aug 31, 2023 7:28 am
Forum: Personal Investments
Topic: TIAA traditional
Replies: 28
Views: 1951

Re: TIAA traditional

Traditional is a high quality fixed annuity. Fixed annuities are general accounts backed by the full faith and credit of the issuer. They are highly rated and typically pay a strong interest rate relative to the marketplace. Many people will allocate (intentionally, or out of necessity) a portion of their bond investments to a fixed annuity. Historically returns have been similar to bonds, as bonds are one of the primary underlying investments. In 2022 those in a product like this achieved a lifetimes worth of out performance by beating bonds by double digits. Your other investments are somewhat higher cost than VG alternatives but altogether quite acceptable. Because this is inherited, and because TIAA basically requires all employees to w...
by MN Finance
Tue Aug 29, 2023 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs and QCDs
Replies: 13
Views: 1728

Re: RMDs and QCDs

Don't make it complicated. All money you take out counts towards your RMD. If any of it went to charity, then it's not taxed. That's it.
by MN Finance
Tue Aug 29, 2023 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Custodial ROTH IRA question
Replies: 9
Views: 1024

Re: Custodial ROTH IRA question

This is driven by state law and is not something you can elect to change after the account is established. In some states you choose the termination date, but not all.
by MN Finance
Wed Aug 23, 2023 9:48 am
Forum: Personal Investments
Topic: The bond conundrum: Taxable vs retirement
Replies: 15
Views: 1672

Re: The bond conundrum: Taxable vs retirement

steadyosmosis wrote: Wed Aug 23, 2023 8:02 am
idontmind wrote: Tue Aug 22, 2023 4:35 pm What is one to do?
I have no emergency fund.
I hold only VTI in my taxable brokerage account because I dislike paying unnecessary taxes.
On Wednesday 8/2/2023, I sold some VTI in taxable (because I am younger than age 59.5) to get cash to pay a $10,400 bill.
Two minutes later, I re-balanced in a tax-deferred account to maintain my overall portfolio AA of ~60/40.
Now do that after 20 years of price appreciation with $300k when moving to another state because you can't sell your existing home and tell me it's no big deal.
by MN Finance
Wed Aug 23, 2023 7:37 am
Forum: Personal Investments
Topic: The bond conundrum: Taxable vs retirement
Replies: 15
Views: 1672

Re: The bond conundrum: Taxable vs retirement

Would you buy any bonds at all in the retirement account (time horizon ≈25 years)? Or in the taxable? This is easy. You buy the bonds in pretax. When you are ready to sell, you exchange the bonds for stocks in pretax and sell the equivalent amount of stocks in taxable. Disagree 100. Asset location is over emphasized on this board much to the detriment of investors that eventually find themselves in need of rebalanicng or cash requirements. If 10 years go by and a taxable account is made up entirely of stocks and you need to sell for either reason, you could have just forced yourself to trigger tens or hundreds of thousands in gains. The only thing worse than tax inefficiency in bond funds is a tax spike which is otherwise out of your contr...
by MN Finance
Wed Aug 23, 2023 7:12 am
Forum: Investing - Theory, News & General
Topic: TIPS v munis in taxable (high tax bracket)?
Replies: 19
Views: 2769

Re: TIPS v munis in taxable (high tax bracket)?

I feel like you're conflating the decision to use TIPS as part of your portfolio stratgy with a decision about where to hold them, which are different issues. You're saying TIPS win if inflation is higher than expected.... ya, right... stocks win if earnings are better than expected, so? First decide if your IPS will include TIPS or not. I can tell you that aside from some of the smart people here, nobody has wanted to own TIPS for the last 15 years, now suddenly they're in vogue. Long TIPS are a great diversifier to equities and I personally think should be part of a portfolio. Second is where to hold them. They are a second choice to munis for high income, but as we saw in 2022, they can produce unexpected taxable income, which was huge l...
by MN Finance
Tue Aug 22, 2023 10:17 am
Forum: Personal Investments
Topic: TIAA Real Estate - Comparison Example
Replies: 8
Views: 1038

Re: TIAA Real Estate - Comparison Example

This is a question for those somewhat familiar with TIAA Real Estate Account (QREARX). The purpose of this question is to help me (and perhaps others) understand the investment. Let's say I were to get together with a group of associates and we decide to invest directly in both commercial and residential real estate and hire a company to manage the properties. We decide to use no more than 30% leverage. We also hire a consultant to periodically appraise the properties so we can estimate the value of our holdings. How does this model differ in principle from the TIAA Real Estate Account? Wow, I was really interested in QREARX. But their customer service is downright horrendous. I don't know how long they can survive when they are horribly r...
by MN Finance
Tue Aug 08, 2023 3:20 pm
Forum: Investing - Theory, News & General
Topic: DFA sales load: pinning down the details
Replies: 25
Views: 2306

Re: DFA sales load: pinning down the details

DFA's fund costs are the costs, which you should be using in your comparison because you are, after all, simply comparing fund strategies like factor loading. Purchasing the fund, may or may not have costs and limitations through history, but that is not part of the equation unless you are attempting to compare something else (such as advisor vs. DIY, in which case you would have to rely on other data entirely as VG and others have already done.) Historically you could only purchase funds through an advisor, as you know, but you were not paying a fee to buy funds... you were utilizing an advisor for various jobs, one being portfolio construction and maintenance. You could presumably have engaged an advisor and paid them a nominal planning o...
by MN Finance
Tue Aug 01, 2023 8:48 pm
Forum: Personal Investments
Topic: Consolidating to TIAA
Replies: 23
Views: 1874

Re: Consolidating to TIAA

If he simply wants to roll IRA money into existing retirement accounts or new IRAs at TIAA, then the process will be straightforward and reasonably simple (despite TIAA service being about the lowest in the industry.) There is a good list of low cost funds available. If he has annuities or after tax funds, then he will be forced into a managed program through a staff advisor, which is no better option than Merrill or other high priced firms.
by MN Finance
Tue Aug 01, 2023 8:42 pm
Forum: Personal Consumer Issues
Topic: Sports with the least commitments for kids?
Replies: 149
Views: 11281

Re: Sports with the least commitments for kids?

Soccer takes no skill, can play anywhere, almost no gear which is in abundance in used sports stores, and organized teams range from low key to hyper focused.
by MN Finance
Tue Aug 01, 2023 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Tesla suppressed driving range complaints
Replies: 174
Views: 14801

Re: Tesla suppressed driving range complaints

This thread just proves people will whine about anything. In my cold climate range gets hammered with all EVs (though, heavily dependent on the ambient temperature where you park overnight,) but in average weather range estimates are anecdotally accurate, and heavily dependent how you drive. Tesla range is well beyond other comparable EVs, especially what I consider usable range, which is about 250mi in my S. If I charge to 80% for daily driving and then plug in when expected remaining life is under 100mi, that leaves 250mi. I've never driven more than that in a day. And who cares how much it costs to fuel... nobody buys these kinds of EVs to save money (though I do save about 200/mo over my ICE.) No maintenance, service calls to the house,...
by MN Finance
Mon Jul 31, 2023 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Mechanics of QCD [Qualified Charitable Distribution]
Replies: 21
Views: 2418

Re: Mechanics of QCD [Qualified Charitable Distribution]

Checking writing is by far the best way to mange QCDs at almost any institution.
by MN Finance
Mon Jul 31, 2023 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Durable Power of Attorney (POA) vs Regular POA
Replies: 12
Views: 921

Re: Durable Power of Attorney (POA) vs Regular POA

You need to contact them for a higher level of authorization, the durable or non-durable issue is a distinctly separate concept. Typically there are 3 levels at most institutions, the highest having withdrawal rights. If possible, I would always use the in-house forms.
by MN Finance
Sun Jul 30, 2023 6:23 pm
Forum: US Chapters
Topic: What was your first Boglehead post?
Replies: 61
Views: 9478

Re: What was your first Boglehead post?

I wish I could find the link, but mine was in 1999 on the M* forum when I tried to argue with Larry about stock picking vs. indexing. Thankfully, I lost the argument.
by MN Finance
Sun Jul 30, 2023 6:17 pm
Forum: Investing - Theory, News & General
Topic: Investment-Grade Bonds are OK - Why Not Investment-Grade Stocks?
Replies: 3
Views: 411

Re: Investment-Grade Bonds are OK - Why Not Investment-Grade Stocks?

I don't know who's going to Google an article and give an informed reply, but investment grade bonds (which refers to the credit quality of the issuer being BBB or greater, as opposed to junk status,) is a qualifier that's measurable, whereas investment grade stocks is not nomenclature which is used to describe a defined measurement or classification. Possibly it means the stocks of investment grade bond companies, but we'd have to read the article to know that. If that's the definition, then it's explainable based on market factors (size, price, etc) not on the measurement itself.
by MN Finance
Sun Jul 30, 2023 6:09 pm
Forum: Investing - Theory, News & General
Topic: When Will Vanguard's Solo 401k Start Allowing ETFs?
Replies: 10
Views: 910

Re: When Will Vanguard's Solo 401k Start Allowing ETFs?

Eric wrote: Sun Jul 30, 2023 6:02 pm
69XR7 wrote: Sun Jul 30, 2023 5:26 pm I just moved my solo 401k from Vanguard to Fidelity. It opens up many more options.
But also eliminates an option: Fidelity's offering does not allow Roth contributions.
Schwab and Fidelity platforms are clearly superior to Vanguard in most respects, but Roth would be the exception. I expect Roths to be part of future enhancements after the secure act income limit on catch up contributions, since the plans will have to change one way or another.
by MN Finance
Tue Apr 19, 2022 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: 500K+ in capital gain. Looking for options
Replies: 33
Views: 5074

Re: 500K+ in capital gain. Looking for options

The bottom line is that you don't have options. The only thing you can do is give money away or lose money, and in either scenario, you are worse off than paying taxes.
by MN Finance
Tue Apr 19, 2022 7:36 pm
Forum: Investing - Theory, News & General
Topic: Do bond funds ever distribute capital losses?
Replies: 12
Views: 1610

Re: Do bond funds ever distribute capital losses?

Funds can't distribute losses, but they can carry them forward to offset future gains
by MN Finance
Wed Apr 13, 2022 8:31 pm
Forum: Personal Investments
Topic: Any “Gotchas” With Inherited/Beneficiary IRAs?
Replies: 20
Views: 1962

Re: Any “Gotchas” With Inherited/Beneficiary IRAs?

Most 10 year rule beneficiaries of a non Roth IRA should consider annual distributions to spread the tax even if the decedent passed pre RMD and no annual RMDs are required. For a beneficiary age 56, any required annual RMD might run around only 1/3 the annual distribution that a beneficiary would take in drawing down the IRA by a roughly equal amount in each of the 10 years. Accordingly, anyone relying on only the RMD to drain the inherited IRA equally will not be happy with their year 10 tax bill. Agreed. However I would imagine a great percentage of IRAs get inherited by beneficiaries who are nearing retirement, just based on late 50s being the likely age of a parent passing away right around average life expectancy in early 80s. Those ...