Search found 45 matches

by BrainDrain
Wed Feb 14, 2024 12:11 am
Forum: Personal Consumer Issues
Topic: Parking a US mobile number while traveling
Replies: 19
Views: 1985

Re: Parking a US mobile number while traveling

Not sure on why you would need it. I spent good 3+ months overseas last year. I use ATT and incoming messages are free international on cellular when I don't have wifi. When I have wifi I enable vowifi and get both sms and calls free of cost. Have you considered this? Can you please explain how this works. I have AT&T and get billed $10 a day when my children are overseas & using their phones. We signed up for the International Day pass through AT&T at $10 a day (and it typically costs me a small fortune!). Thanks. There are two ways to do this. 1. Buy local SIM at that country or buy online via airalo. They give you data only packages which provides Internet connectivity. Once you have it you can use your att voice and SMS by ...
by BrainDrain
Mon Jan 08, 2024 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: I'm 55: Should I do any Rule-of-55 planning?
Replies: 6
Views: 1614

Re: I'm 55: Should I do any Rule-of-55 planning?

I wouldn't be too concerned about the benefits of the rule of 55 option in your situation. With $8.2M in your taxable account and relatively modest spending goals, you may decide to consolidate your 401k into your IRA upon separation and then do systematic Roth conversions before you hit RMD age while taking distributions from your taxable account. Age of 55 becomes really important when most of your funds are tied up in qualified accounts and you have to jump through IRA and 401K distributions exceptions to access funds to live on when retiring before age 59 1/2. That does not apply to you.
by BrainDrain
Tue Dec 26, 2023 3:41 am
Forum: Personal Consumer Issues
Topic: Hut to Hut Backpacking/Hiking - Italy Alps Dolomites
Replies: 16
Views: 2457

Re: Hut to Hut Backpacking/Hiking - Italy Alps Dolomites

We climbed the Via Ferrata for the Piccolo Cir (Small Cir) in the Val Gardena in June 2022 with my entire family ranging in age from 11 to early 50s and had an absolutely fantastic time. As we had completed a via ferrata at least once before and had done some light Colorado 14er mountaineering, we rented the gear from https://www.sportbruno.com/en/rental-summer.asp in Selva before driving up to the Piccolo Cir. It was challenging but never felt unsafe and was easily one of our top ten days of traveling ever. Guides are available too if that's your preference. You may want to tack this on to a hut to hut trip. This page https://www.thevirtualsherpa.com/gran-cir-small-cir-via-ferrata-guide/ and linked videos will give you an idea of the chall...
by BrainDrain
Mon Oct 23, 2023 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving an IRA to a minor in trust
Replies: 3
Views: 853

Re: Leaving an IRA to a minor in trust

Thanks, bsteiner! I've also noted that there's an article you co-wrote on the subject here for those who are interested: https://www.kkwc.com/wp-content/uploads ... RE-Act.pdf

These proposed changes should streamline estate planning for those with children or other beneficiaries who may not be ready to deal with an inheritance without the oversight and help of a trustee.
by BrainDrain
Mon Oct 23, 2023 1:09 am
Forum: Personal Finance (Not Investing)
Topic: Leaving an IRA to a minor in trust
Replies: 3
Views: 853

Leaving an IRA to a minor in trust

I had an interesting conversation with bsteiner at the Bogleheads Forum (thank you organizers - it was wonderful!). It concerned the use of a testamentary trust as a contingent beneficiary of an iRA. In the pre-SECURE days, the typical advice I heard is that a conduit trust is often recommended as a beneficiary for an iRA. That way if the IRA owner were to pass and the primary beneficiary spouse didn't survive the owner, then you could leave the funds in a conduit trust for a child. That way the conduit trust would get the whole lifetime (pre-SECURE) stretch of the inherited IRA. Many law firms recommended these trusts expressly for the purposes of passing an IRA on to a beneficiary without giving them unfettered access to exhaust the accou...
by BrainDrain
Fri Mar 03, 2023 9:30 am
Forum: Investing - Theory, News & General
Topic: Craig Wear CFP
Replies: 62
Views: 17865

Re: Craig Wear CFP

Many of the previous posters on this thread have only 1-3 lifetime posts to their name. Seems a bit dodgy.
by BrainDrain
Wed Jan 18, 2023 12:28 am
Forum: Personal Consumer Issues
Topic: Colorado National Park Vacation in Summer
Replies: 56
Views: 5958

Re: Colorado National Park Vacation in Summer

Everyone should try at some point in their lives to go up above 10,000 ft, 11,000, 12,000, 13,000, and 14,000 to see if they are affected by altitude. Some are and some are not. I live below 200 feet elevation, but in September I was in RMNP, camped at Boulderfield (~12,700) and summited Longs Peak which is the highest point in the park. Chasm Lake and back on the way is a classic day hike. Bravo livesoft on your accomplishment! A Longs Peak ascent is for the fit, prepared, acclimated, and the brave, with a 5,000 ft vertical climb, over 13 miles round trip, and Class 3 climbing toward the top when legs are tired and minds can be fuzzy over 14,000 ft. In general I would not climb a 14er with a 6 year old, especially one who lives close to s...
by BrainDrain
Tue Jan 17, 2023 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: Our New REPAYE Plan: ideas and suggestions?
Replies: 4
Views: 455

Re: Our New REPAYE Plan: ideas and suggestions?

At this point it's a proposed rule of the Biden Administration. https://www.federalregister.gov/documen ... an-program

Given this proposal would cost by one estimate $70 billion over its duration https://budgetmodel.wharton.upenn.edu/i ... orgiveness, it's conceivable that a court challenge could arise. While most published stories seem to treat its approval as a fait accompli, I would not act on this proposed rule change yet especially with debt ceiling debates on the horizon. It indeed would be a significant change for a sizable portion of federal student loan borrowers.
by BrainDrain
Fri Jan 06, 2023 1:40 am
Forum: Personal Consumer Issues
Topic: Do we need Private College counsellor for High School Sophomore?
Replies: 73
Views: 6781

Re: Do we need Private College counsellor for High School Sophomore?

Private college counselors don't need to charge 5 digit fees. You can find hourly advisors as well as those that offer packages that are much more affordable. In my experience, this is one area that many times you don't get what you pay for. There's podcast called Your College Bound Kid that is hosted by a private college coach. In two recent episodes they covered what to look for in a college coach: (go to 41:30 in the podcast) - https://yourcollegeboundkid.com/2022/12/29/ycbk-285-elite-colleges-quiet-fight-to-favor-alumni-children/ Among the criteria: 1) Is there good rapport between your family and the coach? 2) Professionalism - If you think qualifying as a financial advisor is ridiculously easy, consider a private college coach. The fi...
by BrainDrain
Thu Oct 20, 2022 11:03 am
Forum: Personal Finance (Not Investing)
Topic: College and Investment Banking Placement
Replies: 39
Views: 4384

Re: College and Investment Banking Placement

Good dataset is linked below on college placement into banking jobs, both on an absolute basis and also adjusted for enrollment in the college. https://www.collegetransitions.com/dataverse/top-feeders-banking Duke looks pretty strong, but you're going to have to work your tail off to get a banking job regardless of whether you go to Duke or UNC. If you're in-state UNC, I would give that option serious consideration especially if your family is contemplating full-pay Duke for $80K plus a year. I know we can't rely on exit salary as the only method to value an entire college experience, but an extra $60K a year to go to Duke seems like it would be tough to justify. You probably know your odds are much better at Duke in the ED round which has ...
by BrainDrain
Tue May 24, 2022 11:49 pm
Forum: Personal Finance (Not Investing)
Topic: How to secure In-State Tuition
Replies: 91
Views: 8461

Re: How to secure Instate Tuition

Colorado public universities, particularly CU Boulder and Colorado School of Mines, depend on out of state and international students in order to help subsidize their budgets through additional tuition fees. CU in particular is well known for attracting students from Texas, Illinois, and California to fill its coffers. Almost half of the undergrad students at CU are from out of state, in contrast to most Texas universities that are 90 percent or more in-state. Colorado is among the most strict states in terms of qualifying for in state residence for purposes of higher education. One positive is that the University of Colorado does offer merit aid to many out of state students, unlike many other flagship public universities. It used to be mo...
by BrainDrain
Mon Jan 17, 2022 11:50 pm
Forum: Personal Consumer Issues
Topic: DENVER - What are the good neighborhoods to look into for young families?
Replies: 40
Views: 4148

Re: DENVER - What are the good neighborhoods to look into for young families?

Take a look at the area in far South Denver near Slavens K-8 school. It’s a well-regarded school and the area has a nice neighborhood feel. Depending on how the market looks as we near spring, you should be able to find something close to $1 million. This area works for commutes north to downtown (and Wash Park) as well as down south toward the Tech Center.

If you like to walk, you’d be very close to the Highline Canal trail. It’s a wide dirt trail that goes on for miles as it winds its way to the mountains.

The homes are nothing like the 1920s era bungalows that (used to) dominate the WP area. There’s more of a midcentury modern feel with sprawling ranches on bigger lots.
by BrainDrain
Fri Sep 03, 2021 12:40 am
Forum: Personal Finance (Not Investing)
Topic: To AMT or not to AMT (best way to exercise ISOs)
Replies: 18
Views: 1861

Re: To AMT or not to AMT (best way to exercise ISOs)

Don't overlook that cashless option exercise (which is my [opinion] recommendation ... ) also incurs all of your usual payroll taxes, including FICA, Medicare, and Unemployment Insurance premiums. You might choose appropriate tax withholding at execution, as well. Gains on ISOs even if a disqualifying disposition are not considered compensation subject to payroll tax and thus are not subject to FICA (which is Medicare and Social Security). They are considered ordinary income. https://www.natlawreview.com/article/isos-and-employee-payroll-taxes The employer not the employee pays unemployment insurance premiums and usually it's just on the first $7,000 of income for year (for FUTA). OP as others have said I'd consider figuring out how much o...
by BrainDrain
Thu Aug 26, 2021 1:11 am
Forum: Personal Finance (Not Investing)
Topic: College Financial Aid
Replies: 19
Views: 1962

Re: College Financial Aid

If you're hoping for merit aid, it doesn't get any better than this resource. https://www.bigjeducationalconsulting.com/resources This one, annually updated resource gives the full cost of attendance for most universities that your children would consider. This includes tuition, fees, room and board, transportation, book, supplies, and miscellaneous costs. Even better it tells you the percentage of enrolled students that were categorized as not "needing" financial aid that are receiving merit aid . The average merit aid package is also disclosed. If you're looking for a college discount (which Lieber mentions extensively in his book), there's not a better resource I've found. Through looking at this resource, you can see some of t...
by BrainDrain
Thu Apr 15, 2021 1:36 am
Forum: Personal Finance (Not Investing)
Topic: First child entering college in the fall... need some advice
Replies: 186
Views: 16064

Re: First child entering college in the fall... need some advice

I wonder if the OP has left the room. Congrats on your daughter gaining admission to highly selective schools in a very competitive year. The time to evaluate how to pay for college is before your child even applies to college. Sure there is some variability in the merit aid that may be available for a given institution. In this case, it sounds like you knew that there would be no merit aid available with these schools. What was your plan to pay for college that you had in place before your child applied? As other posters stated, the max federal student loan is $5,500 in the first year and then increasing to $7,500 in the final year. Any other federal loans you take out are yours (PLUS loans) with higher interest rates. Even if you were to ...
by BrainDrain
Thu Apr 15, 2021 12:25 am
Forum: Personal Finance (Not Investing)
Topic: Selling a Time Share
Replies: 40
Views: 4476

Re: Selling a Time Share

One interesting legal theory I've encountered is that if you want to rid your heirs of the hassle of inheriting a timeshare is to leave that property in your will directly back to the timeshare company. So the Wyndham Vacation Club would inherit the worthless Wyndham timeshare. I've never seen this work in practice, but would be interested in hearing if anyone has. It could be a good recommendation for desperate and patient timeshare owners! For the OP there is the possibility (albeit small) that the timeshare has value. Best to go to tug2.net or ebay to see if there's an active market in comparable properties/weeks. In some mountain communities in Colorado, there are some realtors that actually accept listings to sell timeshares such as fr...
by BrainDrain
Sun Apr 04, 2021 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Any CPAs out there? Is Cost of Health Insurance Deductible? (K-1 Partner)
Replies: 22
Views: 2566

Re: Any CPAs out there? Is Cost of Health Insurance Deductible? (K-1 Partner)

HootingSloth I see your point here, although it's supported by a Field Service Advice memo from 26 years ago. Even then quoting its contents it doesn't seem that the ability to deduct the premiums through employer provided insurance constitutes a subsidy: We do not believe that eligibility to participate in a group plan at the full group rate is the type of subsidized participation that Congress envisioned ." I wish the law were more clear, but here's the way I'd see it: 1) If a self-employed person does not have access to health insurance from the spouse's employer, then a policy is deductible as self-employed health insurance (SEHI) to the extent there was profit generated in the business. 2) If a self-employed person does have acces...
by BrainDrain
Sat Apr 03, 2021 2:06 am
Forum: Personal Finance (Not Investing)
Topic: Any CPAs out there? Is Cost of Health Insurance Deductible? (K-1 Partner)
Replies: 22
Views: 2566

Re: Any CPAs out there? Is Cost of Health Insurance Deductible? (K-1 Partner)

This is a tricky one for what seems like a straightforward issue. The first place to go for a reference here is the Internal Revenue Code that concerns this question, which is Sec 162(l)(2)(b). https://www.law.cornell.edu/uscode/text/26/162 . It states that: Paragraph (1) [which permits self employed health insurance to be deductible] shall not apply to any taxpayer for any calendar month for which the taxpayer is eligible to participate in any subsidized health plan maintained by any employer of the taxpayer or of the spouse of, or any dependent, or individual described in subparagraph (D) of paragraph (1) with respect to, the taxpayer. For the original poster, it doesn't seem their spouse qualifies for subsidized health insurance from the...
by BrainDrain
Sun Oct 25, 2020 1:06 am
Forum: Personal Finance (Not Investing)
Topic: College Merit Aid Question...
Replies: 51
Views: 5092

Re: College Merit Aid Question...

Public universities have widely varying policies when it comes to granting merit aid out of state. Highly sought after publics such as Berkeley, UCLA, and Virginia for most part offer no merit aid. I'd put UNC in the same boat save for a truly exceptional applicant. Others such as the University of Colorado and Alabama regularly offer merit aid to out of state students as a matter of course. You need to understand a particular university's policies and where your daughter fits in their admissions profile. Some universities are very transparent and will publish what sort of aid award you can expect with a given academic profile. I'd recommend three resources for further digging. This is a well researched, annual update look at college merit ...
by BrainDrain
Mon Aug 31, 2020 11:56 pm
Forum: Personal Consumer Issues
Topic: Undergrad College List
Replies: 64
Views: 6121

Re: Undergrad College List

This spreadsheet is an incredible (and recently updated) resource for determining which schools offer merit aid, the percentage of of non-need admitted students who receive aid, and the average merit aid package. https://static1.squarespace.com/static/5d1ad956be52e800010a2502/t/5f25b22eedb58b6c972b5d79/1596305966791/Domestic+Undergraduate+Need-Based+and+Merit+Aid+%28August+2020%29+-+Sheet1.pdf That being said, I agree with other posters that the initial focus should be on an affordable undergrad degree that can lead to a job even without an MD. Most pre-med students don't end up in medical school. Might be nice have a little less competition when going up against other premeds in O Chem. Psychiatry is among the more modest paying specialtie...
by BrainDrain
Mon Nov 11, 2019 1:22 am
Forum: Personal Investments
Topic: Should I use my 457(b)? Worried about disbursement options...
Replies: 32
Views: 1843

Re: Should I use my 457(b)? Worried about disbursement options...

I would give serious thought to passing on the option to contribute to a non-profit 457(b) plan. Most often these are available to highly comped hospital system employees. Usually there is some high cost investment provider that you must use for the 457 plan. Your deferred earnings would subject to seizure as others have said in case of insolvency. In fact if you look at the balance sheet of the non–profit, you will see the 457 accounts with employees’ savings listed as an asset of the non-profit. Plus the distribution options are usually convoluted and often require that you make choices on the timing of distributions well before you plan on withdrawing funds from the plan. If you go work somewhere else that 457 plan balance will be strand...
by BrainDrain
Thu Sep 12, 2019 10:00 pm
Forum: Personal Consumer Issues
Topic: American kids attending Canadian Universities??
Replies: 22
Views: 3758

Re: American kids attending Canadian Universities??

If you’re considering out of state public universities, it’s very possible that you could pay far less than the list price for an out of state college. With your child’s scores and grades, it is likely they could qualify for merit aid regardless of the FAFSA determination of what your family is able to pay. Living in the western US, you also qualify for one of the better regional programs that allow out of state students in the same region to access much lower tuition than standard out of state students. For Western States it’s called the Western Undergraduate Exchange (WUE). You can find a list of participating colleges here: https://www.wiche.edu/files/files/wueHandout.pdf You’ll notice that many of the flagship universities like most of ...
by BrainDrain
Wed Aug 14, 2019 11:11 pm
Forum: Personal Investments
Topic: DCA vs lumpsum for company RSUs
Replies: 7
Views: 1106

Re: DCA vs lumpsum for company RSUs

Sell it right away. Microsoft just gave you an RSU bonus that you must pay tax on just like any other form of compensation. Think about this, if they gave a $50k cash bonus would you turn around and buy company stock? That’s exactly what you’d be doing by holding the RSUs after they vest. The fact they give the bonus to you in company stock means nothing.
by BrainDrain
Wed Aug 14, 2019 10:46 pm
Forum: Investing - Theory, News & General
Topic: holding ISOs to LTCG
Replies: 7
Views: 1236

Re: holding ISOs to LTCG

You seem to be very focused on the tax aspects of the options, when the financial and risk aspects are much greater. It’s hard to comment in too much detail about your situation without the exercise prices, market price, vesting schedule, and duration of the option tranches. I’d recommend that you evaluate all tranches with an eye for how much of their inherent value depends on (1) the immediate discount you can receive, and (2) the ability to benefit in the appreciation of the stock for the remainder of the exercise window for a given tranche without investing capital. The more the value of an option that is derived from the immediate discount you receive, the stronger the signal is to exercise and sell that option. If say 90% of an option...
by BrainDrain
Mon Dec 31, 2018 3:05 am
Forum: Personal Finance (Not Investing)
Topic: How to find a quality Estate Planning Attorney?
Replies: 31
Views: 4858

Re: How to find a quality Estate Planning Attorney?

supalong52 wrote: Sun Dec 30, 2018 10:27 pm
samsdad wrote: Sun Dec 30, 2018 8:45 pm
dlw322 wrote: Thu Apr 05, 2018 10:37 am https://www.actec.org/
+1
I looked in San Diego and found 4 attorneys. All of them seem to deal with very high net worth / private client types. Not really for the average BHer. My former firm had a private client law group that only dealt with folks worth over $100 mil. So I don't think I could even get my foot in the door for a consultation.
ACTEC attorneys are not all high end “trustophiles.” They are elected as fellows due to their enduring, sole focus on estate planning (not to be assumed when many attorneys practice in 3 or 4 areas), their contributions on state legislative committees, and the esteem of their peers. If you reach an ACTEC fellow and they’re not right for you, ask them for a referral.
by BrainDrain
Mon Dec 31, 2018 2:27 am
Forum: Personal Consumer Issues
Topic: Subaru infotainment issues -can people chime in?
Replies: 44
Views: 11743

Re: Subaru infotainment issues -can people chime in?

I have a 2018 Outback Limited 2.5 and it’s been relatively problem free since purchase in February 2018. May have been one freeze in the head end unit, but for the most part it’s been reliable. Use Apple Carplay extensively, which is a great feature now that Apple allows you to use Google Maps with CarPlay. Nothing better than having the best nav that’s constantly updated on the big screen in the Subaru. I did request the head end unit be updated at dealer just in case issues crop up that others describe. There was a time when my iPhone disconnected 3-4 times in a week from the unit, but this problem was resolved by replacing the Apple cable. Back up camera is slick with guidelines that bend as you crank the steering wheel. Love the car (an...
by BrainDrain
Wed Aug 15, 2018 8:40 pm
Forum: Personal Investments
Topic: Just left Edelman Financial and need help
Replies: 7
Views: 1605

Re: Just left Edelman Financial and need help

gerntz wrote: Wed Aug 15, 2018 8:31 pm I thought DFA required you having an advisor approved by them.
You don’t need a DFA advisor to retain the funds for transfers out. He can’t buy any more DFA funds unless he is working with an approved advisor, but he can retain them.
by BrainDrain
Wed Aug 15, 2018 8:38 pm
Forum: Personal Investments
Topic: Do I need disability insurance
Replies: 4
Views: 511

Re: Do I need disability insurance

Yes you need disability insurance. Rule of thumb is that it usually costs 1-2 percent per year of the amount of income you’re covering, but it’s individually underwritten and there may be something about your situation to make it more expensive. Shop around for a new policy while the existing one is in force. Consider getting a quote from an independent insurance broker, and look into whether you can qualify for a lower cost policy through a trade association or group. Consider extending the elimination period if you have enough cash saved up to cover your family for say 6 months to a year. This will lower your premiums.
by BrainDrain
Wed Aug 15, 2018 8:27 pm
Forum: Personal Investments
Topic: Just left Edelman Financial and need help
Replies: 7
Views: 1605

Re: Just left Edelman Financial and need help

Well the first decision you should make is whether you want to do it yourself or you want to use another advisor, albeit with lower costs. If you want to do it yourself, I would read through the forum wiki and posts, read some of the recommended books including those by Bill Bernstein, and go that direction. If you want to find a lower cost firm to help you, consider looking at NAPFA.org for a fee only financial planner or using the Garrett Planning Network, which offers hourly advice. You could go with Vanguard PAS for a low cost, but I would suspect that coming in with a lot of appreciated securities in a taxable account with reasonable expenses ratios as you have would be a little bit of a challenge for the formulaic approach. A lot of y...
by BrainDrain
Wed Aug 15, 2018 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: How does rental property profit effect MAGI?
Replies: 4
Views: 997

Re: How does rental property profit effect MAGI?

Rental property profit increases MAGI, but for 2018 not as much as you might think due to depreciation as before and the new Section 199A that could reduce taxable portion of real estate income by 20 percent.
by BrainDrain
Fri Aug 03, 2018 11:55 pm
Forum: Personal Investments
Topic: High expense ratio worth it/Portfolio review
Replies: 48
Views: 4723

Re: High expense ratio worth it/Portfolio review

A solo 401k permits you to contribute $18,500 more a year (if under 50) than a SEP. Plus you get the choice of the employee contribution being a Roth 401k account. Backdoor Roth also becomes a possibility for you vs a SEP. May make sense to roll your spouse’s IRA into 401k for backdoor Roth reasons if investment options are good in 401k and fees are low. VULs are generally a lousy deal, with often most of the first year’s premium going toward commission. Anyone selling VULs is not fee only, and is not a fiduciary all of the time (maybe not even any of the time). Before we could offer the trick of using a VUL policy loss to conduct a 1035 exchange to a cheap non qualified annuity that you could cash it out, and take a loss as a miscellaneous...
by BrainDrain
Thu Aug 02, 2018 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a Boglehead way of running a business?
Replies: 19
Views: 2937

Re: Is there a Boglehead way of running a business?

I would work with another CPA to move toward sole proprietor taxation through LLC or S Corp taxation. The new pass-thru income rules could make sole proprietor taxation even more advantageous than S.

Rarely are C corps recommended for holding a building. Again an LLC is preferable where you will get benefit of 20 percent tax reduction from new pass-thru rules on profits.

C corps are subject to double taxation at 21 percent of profits at corporate level and then personally paying taxes on dividends.

You won’t be able to do this on your own. You need a great CPA to help manage move to other entities as there will be advanced concepts such as Built In Gain that will need to be managed.
by BrainDrain
Thu Aug 02, 2018 12:33 am
Forum: Personal Investments
Topic: Social Security + term life
Replies: 41
Views: 3087

Re: Social Security + term life

]Note that $200K won't be $200K in today's dollars due to inflation 15-20 years from now. Would an inflation adjusted deferred annuity be an option? I think I would be at least as concerned about longevity risk with them.They don't have a big cushion. The cheapest inflation adjusted annuity you can purchase is delaying SS. If both wait until 70, survivor would get 65 percent of joint SS income $37,371/$57,471. Surely the spending requirements will go down upon first death (Medicare B and D and supplemental premiums for one) and they can be supplemented by remaining nest egg which now only needs to support one person. If the first dies early there’s more nest egg remaining to use for one person. If first dies later then they’ve benefitted f...
by BrainDrain
Thu Aug 02, 2018 12:10 am
Forum: Personal Finance (Not Investing)
Topic: Rent vs Buy Beach House
Replies: 8
Views: 2534

Re: Rent vs Buy Beach House

DEBITS Downpayment Required Monthly PITI Management fee (weekly cleaner fee, property manager/vacation booking agent/VRBO/AirBnB fees). HOA/other fees Reserve fund INCOME NET rental income after management/cleaning out (don't forget to subtract peak season weeks you'll be there). Don’t forget the round trip transaction costs to buy and sell, which add up to be around 10 percent of property value. Also if it’s in a hurricane zone you may have unreimbursed flood damage and the worry and trouble of protecting and rehabbing your property. Don’t mean to be a downer here. If you can afford to do it and want to do it, then do it! Just know that it’s more a use asset than an investment, but if that means building generations of family memories it ...
by BrainDrain
Wed Aug 01, 2018 1:24 am
Forum: Personal Consumer Issues
Topic: Do You Purchase "Medical Evacuation Insurance" When You Travel?
Replies: 185
Views: 17225

Re: Do You Purchase "Medical Evacuation Insurance" When You Travel?

Is anyone aware of the Divers Alert Network? https://www.diversalertnetwork.org/scub ... insurance/. You don’t need to be a diver to join and you can cover a family for $55 a year, which includes $100k of medivac coverage. I’ve not waded too deep in the terms and conditions, but it’s a very respected organization.

Also, many Medicare supplemental plans will cover overseas medical treatment without any pre existing condition trapdoors that are rife in many travel insurance policies.

DAN terms here https://www.diversalertnetwork.org/files/handbook.pdf
by BrainDrain
Wed Aug 01, 2018 1:03 am
Forum: Personal Investments
Topic: High expense ratio worth it/Portfolio review
Replies: 48
Views: 4723

Re: High expense ratio worth it/Portfolio review

I see that these are Loring Ward funds that essentially charge an investor tax as a percentage of the assets, and then they invest in the corresponding DFA fund. So you may be paying this adviser in two ways: the 1 percent plus some portion of the aforementioned investor tax. There’s nothing special industrywide about the $300k portfolio size that qualifies you for DFA. It’s more a matter of finding a qualified advisor to take you on at that asset level, which can be hard. I’d recommend Vanguard supplemented by hourly planning as needed.

Good luck!
by BrainDrain
Wed Aug 01, 2018 12:46 am
Forum: Personal Finance (Not Investing)
Topic: what is the penalty for not paying quarterly tax?
Replies: 7
Views: 1575

Re: what is the penalty for not paying quarterly tax?

It’s 5 percent annual interest of the amount owed if you settle up by normal tax filing date. It would usually end up being less than 5 percent of the amount owed because it’s based on making equal payments April 15, June 15, Sept 15, and Jan 15 (2019). Interest is determined from each of those dates. You may fall into one the safe harbors based upon your previous year’s tax bill. This could result in your not owing interest at all if you have paid 100-110 percent (depending on income) of your tax bill from the previous year in equal, on time estimated tax payments and/or wage/retirement distributions with tax withholdings. The interest rate is not high, but it’s one debt collector that won’t go away! :shock: https://www.irs.gov/newsroom/in...
by BrainDrain
Wed Aug 01, 2018 12:27 am
Forum: Personal Investments
Topic: High expense ratio worth it/Portfolio review
Replies: 48
Views: 4723

Re: High expense ratio worth it?

These are not DFA funds and this is probably not a DFA advisor. This looks like some sort of expensive wrapper around DFA funds, much like you can find Vanguard “funds” that are much more expensive than the real thing inside of annuities or retirement plans. If you want look up a real DFA fund, instead of SARLX the Real Estate Fund in your portfolio with an expense ratio of .75 percent take a look at DFREX, which is the real deal at .18 percent. Not only are his fees 1 percent, but you’re paying inflated investment fees. Besides your real financial issue is not effective management of this portfolio, but a myriad other factors as a young doc such as managing that debt. If you’re too busy to figure this out on your own, try looking for hourl...
by BrainDrain
Wed Aug 01, 2018 12:08 am
Forum: Personal Investments
Topic: Social Security + term life
Replies: 41
Views: 3087

Re: Social Security + term life

I agree that two insurance policies would need to be purchased: one on each of them. You would also need to go beyond 10 yrs level term to protect this risk because the financial risk still exists once they’ve waited until age 70 to collect SS. I expect purchasing two 20 year level term policies at their ages would be much more expensive than the quotes the OP shared. So called joint life aka first to die term policies may be an option to cover them both with one policy with the death benefit paid out upon the first of them passing. But the quotes I’ve seen for this rare product can often be higher than two individual them policies. Truthfully the biggest financial risk is generally that people live too long, not short. I understand that wi...
by BrainDrain
Tue Jul 31, 2018 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a conscientious/competent estate attorney?
Replies: 49
Views: 4880

Re: How to find a conscientious/competent estate attorney?

For a reputable estate planning attorney, I would consult actec.org , the American College of Trust and Estate Counsel. Attorney “fellows” are nominated by other attorneys for their estate planning knowledge, contribution to the profession, and participation in committees to draft estate planning statutes. They can’t be dilettantes and must have focused on this area of the law for at least ten years. They won’t be cheap, but you’ll get an authoritative answer. Besides there’s nothing more expensive than following the advice of a cheap attorney. That being said, I don’t understand the dilemma you face in opening up trust accounts, which would almost never require engaging an attorney for moving an account or changing trust language. You just...
by BrainDrain
Sun Jul 29, 2018 1:23 pm
Forum: Personal Investments
Topic: Retiring soon, use consulting income to fund se401k or pay living expenses?
Replies: 12
Views: 1062

Re: Retiring soon, use consulting income to fund se401k or pay living expenses?

I would set up a solo 401(k) and then make Roth contributions for employee deferral. This will get you up to $24,500 per year in Roth assets. Plus if your income is not too high you can qualify for $6,500 in Roth IRA contributions. I would much rather put $31k into Roth assets and then live partially off my taxable account, then live on the proceeds of my business. Also you should remember that you may be in a lower tax bracket than you realize as the profits from your consulting business will most likely be reduced by 20 percent for tax purposes given the new Section 199A that was enacted with the Tax Cuts and Job Act that was passed late last year. This tax reduction only begins phasing out once your reach $315k of taxable income if you’r...
by BrainDrain
Wed Jul 11, 2018 1:50 am
Forum: Personal Finance (Not Investing)
Topic: Personal 529 inherited by sons - are they taxable?
Replies: 16
Views: 2821

Re: Personal 529 inherited by sons - are they taxable?

529 plans are strange birds. You contribute to them and it’s considered a completed gift to the beneficiary, but you’re later able to change the beneficiary so it doesn’t seem like a completed gift. About changing the beneficiary from your child to your grandchild, there would be no income tax impact at all as long as you made the changes to an existing account rather than rolling over the funds from one 529 to another. The 529 fund distributions could be used toward qualified educational expenses for the beneficiary without paying tax on the gains in the 529 account. If you change 529 state plans, there can be some state income tax impacts for rolling funds from one state’s plan to another’s, so watch for those. Changing the beneficiary wo...
by BrainDrain
Wed Jul 11, 2018 12:35 am
Forum: Personal Investments
Topic: Financial adviser in Portland metro area
Replies: 11
Views: 1577

Re: Financial adviser in Portland metro area

I recommend Troy Thompson, who is a fee-only certfified financial planner, NAPFA member, and a member of the Alliance of Comprehensive Planners - a national group of planners that emphasizes comprehensive financial planning rather than just investment management. http://www.thompson-advisory.com/

He does some project work, but mostly works with clients on an ongoing basis using a flat fee retainer rather than a variable AUM fee.

Disclosure: I’m in the same industry in another area of the country and know Troy professionally. But I have absolutely no financial connection with him or his company.
by BrainDrain
Thu May 17, 2018 11:09 pm
Forum: Personal Investments
Topic: Cashless exercise of NSO vs ISO
Replies: 7
Views: 2868

Re: Cashless exercise of NSO vs ISO

If by cashless exercise you mean cashless exercise and sale, then there is little difference between ISOs and NSOs. Tdifferences arise when you exercise options one calendar year and then sell the shares in another year. However, I am quite certain that ISO exercise in a buy and hold scheme is a non-taxable event, unless under AMT, and only taxable as a LTCG -- including the purchase/grant spread -- if held for more than a year (and after two years from grant date, which the OP presumably already is). What you said above is true for disqualifying dispositions, but not true (but, I guess inferred) for a qualifying disposition. Notice that NQO exercise is always a taxable event -- even if the tax is zero. Sales of both ISO/NQO are taxable ev...
by BrainDrain
Wed May 16, 2018 10:15 pm
Forum: Personal Investments
Topic: Cashless exercise of NSO vs ISO
Replies: 7
Views: 2868

Re: Cashless exercise of NSO vs ISO

If by cashless exercise you mean cashless exercise and sale, then there is little difference between ISOs and NSOs. The big differences arise when you exercise options one calendar year and then sell the shares in another year. With ISOs you will owe ordinary income tax on the bargain between the exercise price and the fair market value of the stock. This is considered a disqualifying disposition, so you don’t get any favorable long term capital gains tax treatment. There are benefits of waiting for 12 months after exercise to sell in order to qualify for LTCG but then you may have other tax issues to worry about including AMT - although this is much less common under the new tax law. Of course you would need to come up with the cash to exe...