Search found 387 matches

by kenbrumy
Fri Mar 26, 2010 9:40 am
Forum: Investing - Theory, News & General
Topic: vwo [is it a dollar hedge?]
Replies: 10
Views: 2023

VWO is a great ETF for diversification into emerging markets. I own it but I wouldn't recommend going way overboard. 40% of my assets are in equities and my VWO is 10% of my equities (4% of total assets).
by kenbrumy
Fri Mar 26, 2010 9:36 am
Forum: Investing - Theory, News & General
Topic: I consulted for a Financial Adviser and I was surprised...
Replies: 30
Views: 5236

The FA's are probably working such long hours because they are finding new rubes to get their 1.5% fee from. Many FA's have a fairly high turnover in accounts every time there is a major market drop that their clients eat or a major move up that the clients missed. The FA's charging this sort of fee...
by kenbrumy
Thu Mar 25, 2010 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Tax & life insurance for unmarried couples?
Replies: 24
Views: 3003

If you own the policy you can change the beneficiary when you get a new boy/girl friend. If they own it, you can't. They would be responsible for paying the premium if they wanted to profit from your death. Based on some of my relationships, that might be sooner rather than later. I would have been ...
by kenbrumy
Thu Mar 25, 2010 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy out my pension?
Replies: 28
Views: 4109

Is there any government guarantee of SPIAs? The "guaranty associations" for SPIAs and all insurance products are quasi-funded by voluntary contributions of companies selling that same type of insurance product in the state affected by the failure. There are significant limitations on the amount a c...
by kenbrumy
Tue Mar 23, 2010 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Does buying a house make sense?
Replies: 26
Views: 4655

I don't plan on staying more than 5 years right now. It all really depends on job situation, you never know what might pop up between then and now! At this price I will be net positive on a sale so long as prices don't dip more than another 5-10% in the 5 year period. At current value the home woul...
by kenbrumy
Mon Mar 22, 2010 4:45 am
Forum: Investing - Theory, News & General
Topic: 4% Retirement Withdrawl Strategy
Replies: 12
Views: 3104

I certainly appreciate and thank you all for taking the time to provide your real life information. It's simple on paper, but real life can and is be quite a bit more difficult. You have stated the one thing that so many people don't seem to grasp when discussing the supposedly "safe withdrawal rat...
by kenbrumy
Sun Mar 21, 2010 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question about deductability of at home caregivers
Replies: 6
Views: 1397

You need to carefully read the IRS publication on medical deductions. My answer is a "yes" if you have a doctor write a letter that the care they are receiving is medically necessary. If you can't get a doctor to write it, then I'd say it would be a real gamble to claim it. The $90,000 cost for what...
by kenbrumy
Sun Mar 14, 2010 3:52 pm
Forum: Personal Investments
Topic: Should I purchase an annuity?
Replies: 17
Views: 3165

Rosie, I can assure that no one cares more about your money than you do. Bogleheading is nothing more than a journey of financial self-determination. Personal finance is not complicated and with a little reading you can outperform 80+% of Wall Streets "best and brightest." You'll also save all the m...
by kenbrumy
Fri Mar 12, 2010 4:19 pm
Forum: Personal Investments
Topic: if I understood this...
Replies: 6
Views: 1375

There are many ways people play with "indexing." Most Bogleheads are recovering individual stock pickers, market timers and some even used technical analysis. It's not easy for people with this background to just "give in." There are all sorts of data mining efforts that show over the last X years y...
by kenbrumy
Sat Mar 06, 2010 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Best practices on rebuilding credit score?
Replies: 4
Views: 1187

You're a good candidate for Dave Ramsey's Total Money Make Over . His book goes into dealing with creditors and how to work your way out of debt in a step-by-step process. He sprinkles his guidance with a lot of Christian morality/scripture but his advice is very good for everything you need right n...
by kenbrumy
Sat Mar 06, 2010 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: lifetime annuity for will/trust beneficiary
Replies: 6
Views: 1946

The lawyer is used to trusts being set up but, realistically, that is only worthwhile for trusts large enough to justify the management costs. Spendthrift trusts are a tried and true solution for what you are trying to do. The problem with giving the spendthrifts SPIAs is that they can get a cash se...
by kenbrumy
Fri Feb 26, 2010 9:31 am
Forum: Investing - Theory, News & General
Topic: Retirement savings safeguards
Replies: 10
Views: 2125

This is really just the tip of the iceberg for what needs to be done. Every 401k I've been in has been loaded up with high fee funds. My current 401k actually has load funds in the mix. Fortunately, I've got an S&P500 index fund with "only" a 0.36% management fee. Why can't everyone join the TSP wit...
by kenbrumy
Sun Feb 21, 2010 2:44 pm
Forum: Investing - Theory, News & General
Topic: 401k lifetime Annuity Options?
Replies: 14
Views: 3493

So the government implemented 401ks so an individual could "save" for retirement but that led to the near extinction of defined benefit retirement plans except (of course) for government employees. Now, they are going to facilitate the conversion of 401k assets back into the moral equivalent of a de...
by kenbrumy
Sun Feb 21, 2010 2:36 pm
Forum: Investing - Theory, News & General
Topic: MONEY magazine recommends Boglehead Forum.
Replies: 33
Views: 6784

Is Money magazine planning to stop publication? I can't think of any reason a true Boglehead would subscribe to this type of publication. Of course, TL apparently subscribes but he's "in the business" and has to keep informed about these sorts of things. The only thing that would be more surprising ...
by kenbrumy
Sun Feb 21, 2010 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Employement and vacation question
Replies: 9
Views: 1169

You should be paid for the accrued vacation hours that you have "earned." You are effectively being treated like you have been terminated from your old position and are starting a new position. You should confirm this with whomever is the HR rep for you prior position. As for not getting paid for a ...
by kenbrumy
Sat Feb 20, 2010 11:07 am
Forum: Investing - Theory, News & General
Topic: Use annuity income to buy life insurance??
Replies: 11
Views: 1953

The life insurance policy payout presumably occurs on average some years after the annuity purchase. The "free lunch" simply reflects a discount rate for inflation. A discount rate for inflation????? The best financial deal for the individual is to die immediately. The $300,000 paid for the SPIA is...
by kenbrumy
Sat Feb 20, 2010 8:45 am
Forum: Investing - Theory, News & General
Topic: Study of state pension/retirement benefit liabilities
Replies: 9
Views: 2011

Politicians have been very free with the taxpayers money "guaranteeing" fat pensions for national, state, county, municipal, etc employees. It is because the unions are very politically active and can crush candidates against their continuing bounty. A few decades ago public pensions weren't that mu...
by kenbrumy
Sat Feb 20, 2010 7:25 am
Forum: Personal Investments
Topic: Which to sell first -- Annuity or Mutual Fund?
Replies: 12
Views: 2558

I went through a very similar situation with my FIL as he went from bad to worse. With your FIL about to go into assisted living you need to consider tax implications. Sometimes annuities have a penalty free amount that can come out annually. If so, go for that amount every year. You said he's in th...
by kenbrumy
Sat Feb 20, 2010 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Universal Life Insurance exchange for Annuity
Replies: 2
Views: 685

A great rule to follow is that if you don't understand it, don't do it. That being said your post lacks lots of information that would be necessary for someone to really give you any suggestions. Such as: 1. What is the cash value of your current policy? That's what you'd get if you canceled it toda...
by kenbrumy
Tue Feb 16, 2010 2:18 pm
Forum: Personal Investments
Topic: Anyone else shortening maturities on FI?
Replies: 57
Views: 8721

I had the long term fund and got totally hosed. Due to losing my job in February 1982 I sold out for the cash since I was on the short path to bankrupty. If you had held onto that same fund until today, what would the annual return be assuming reinvested interest? I'm curious how long it took bond ...
by kenbrumy
Sun Feb 14, 2010 5:27 pm
Forum: Personal Investments
Topic: Anyone else shortening maturities on FI?
Replies: 57
Views: 8721

b) The growth-of-$10,000 curve is very smooth and not scary at all. I only just recently found that Morningstar lets you chart it back to 1987 and it looks good all the way. I only just learned of an event in 1994 known as the Great Bond Massacre and you can see what it did then: To look at what I'...
by kenbrumy
Sun Feb 14, 2010 3:56 pm
Forum: Personal Investments
Topic: What to do w/ an old annuity?
Replies: 13
Views: 1809

You have left a lot of information out that needs to be considered. I will assume that it's some form of variable annuity with several investment options. It sounds like the annuity is in the IRA. If so, you were dealing with a snake. It happens all of the time but I've never heard of one good argum...
by kenbrumy
Sun Feb 14, 2010 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: teen credit cards
Replies: 21
Views: 2130

kenbrumy, are you saying your credit cards do not have a 21- or 25-day float? Our WF ATM/debit cards reimburse us ATM fees including those at overseas ATMs. My credit card has a float but not for "cash advances" which is what you'd be doing by using it to extract Euro's from an ATM machine. My Etra...
by kenbrumy
Sun Feb 14, 2010 2:23 pm
Forum: Personal Investments
Topic: Anyone else shortening maturities on FI?
Replies: 57
Views: 8721

kenbrumy - has real life experience with what could happen. Yet, isn't it amazing how no one listens? kenbrumy - I am in CD's, I Bonds, MMF, bank account, real live cash in my mattress (actually a fire proof safe - why let anyone have it, if they are not going to pay for the privilege of using it) ...
by kenbrumy
Sun Feb 14, 2010 12:14 pm
Forum: Personal Investments
Topic: Anyone else shortening maturities on FI?
Replies: 57
Views: 8721

Re: Anyone else shortening maturities on FI?

Yes, my bonds "value" will fall with lower interest rates but at maturity I'll get all of my principle back. My experience with the bond fund is that the NAV never came back to what I paid originally. ken, I hear you!... in reality you got the part of the drop from "what you paid" in extra income. ...
by kenbrumy
Sun Feb 14, 2010 10:23 am
Forum: Personal Finance (Not Investing)
Topic: teen credit cards
Replies: 21
Views: 2130

I'm also in agreement that you should use a debit card. One option is the prepaid card as several people suggested. The other is a card linked to a checking account that does not allow for overdrafting (no big fees and charges if she decides she really wants that designer Parisian gown). The big dis...
by kenbrumy
Sat Feb 13, 2010 8:49 am
Forum: Personal Investments
Topic: Anyone else shortening maturities on FI?
Replies: 57
Views: 8721

I got totally slammed when I bought a fixed income fund in the 1970's and then the interest rates shot up. My NAV collapsed when interest rates more than doubled. After that I have always bought individual bonds or CDs. There are many threads on this forum and many defenders of buy the funds and let...
by kenbrumy
Fri Feb 12, 2010 7:15 pm
Forum: Personal Investments
Topic: Why hire a financial advisor?
Replies: 7
Views: 2103

I have frequently chided people that said they need a financial adviser. I would also like to know when someone capable of finding the Bogleheads site can't manage their own affairs. Personally, I have a significant but not overwhelming portfolio. I've read, analyzed and decided on a reasonable asse...
by kenbrumy
Mon Feb 08, 2010 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with extra cash?
Replies: 8
Views: 1881

The bonus is part of you asset allocation. If it makes a meaningful change, now might be a good time to rebalance.

I wouldn't pay on the mortgage unless you can get rid of the whole thing.

Congratulations on the bonus. There are pretty slim pickings out there now.
by kenbrumy
Mon Feb 08, 2010 5:07 pm
Forum: Personal Investments
Topic: Question about American Funds...
Replies: 17
Views: 3175

I'm surprised some American Fund sales guy hasn't jumped in with a description of how great they are. I've seen it happen before. You need to look at your whole cost situation. How much do you pay in fees and taxes annually with those funds now? How much in capital gains tax will you incur if you se...
by kenbrumy
Mon Feb 08, 2010 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Grandpa Factor: Older Investors Risk More
Replies: 21
Views: 4001

I believe strongly in an investment plan to keep you to the "true faith" and the discipline to turn your finances over to a trusted child or other younger relative before you're past 70. I'd go with someone like Rick Ferri before anyone in my family. :D Agreed. Not all family members are interested...
by kenbrumy
Sun Feb 07, 2010 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Grandpa Factor: Older Investors Risk More
Replies: 21
Views: 4001

alec wrote:
kenbrumy wrote:I believe strongly in an investment plan to keep you to the "true faith" and the discipline to turn your finances over to a trusted child or other younger relative before you're past 70.
I'd go with someone like Rick Ferri before anyone in my family. :D
I'm sorry to hear that.
by kenbrumy
Sun Feb 07, 2010 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Grandpa Factor: Older Investors Risk More
Replies: 21
Views: 4001

One jewel I got from this forum was the need to develop an Investment Policy Statement . In addition to keeping us on course, it is designed to help our sons maintain our philosophy of investment if we become wired differently as we age. I am detailing the IPS with explanations as to why the plan i...
by kenbrumy
Sun Feb 07, 2010 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Scott Burns on annuities
Replies: 112
Views: 15790

This will be my final post on this thread. I haven't done this exercise in over a year but I thought it was worth redoing with all the confusion about what is an investment and what is "longevity insure" which I consider a marketing slogan (ie. Where's the Beef?) I went to ImmediateAnnuities.com and...
by kenbrumy
Sun Feb 07, 2010 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Scott Burns on annuities
Replies: 112
Views: 15790

1) As usual, Mr. Greaney provides an excellent analysis. However, Just b/c the insurance [i.e. SPIA] has costs [sometimes high costs] doesn't mean you shouldn't buy the insurance. For example, I buy health, disabiliity, life, home, and car insurance even though I'm sure the insurance companies make...
by kenbrumy
Sun Feb 07, 2010 9:21 am
Forum: Personal Consumer Issues
Topic: Paying your fair share on a dinner bill
Replies: 94
Views: 13125

I agree with Gekko if it's an infrequent event. If it's frequent you have the choice of opting out by asking for a separate check or getting that 16 oz sirloin with all the extras so they gripe about you not paying your fair share. I personally always try for the separate check. I've been at too man...
by kenbrumy
Sun Feb 07, 2010 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Scott Burns on annuities
Replies: 112
Views: 15790

We have an SPIA (fixed term, non-inflation) as part of our retirement income and will probably buy additional policies in the future, based upon how this has worked not in theory, but in actual use. It is not the main source of our retirement income but just another income source to provide us with...
by kenbrumy
Sun Feb 07, 2010 7:10 am
Forum: Personal Finance (Not Investing)
Topic: Scott Burns on annuities
Replies: 112
Views: 15790

FWIW, I happen to come down on the side of those who feel that SPIAs can play a role in one's overall retirement plan. I'm currently writing a four-column series on annuities for our bi-weekly Forbes.com column (The Bogleheads' View). It's titled "Annuities: Good, Bad, or Ugly?" and SPIAs will be i...
by kenbrumy
Sat Feb 06, 2010 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Scott Burns on annuities
Replies: 112
Views: 15790

And you don't have fire insurance because it is very unlikely that your house will burn down, right? Actually, I don't have fire insurance since I'm renting but I do have a nice chunk of liability insurance in case a door-to-door annuity salesman trips on my front steps. That's a risk beyond what I...
by kenbrumy
Sat Feb 06, 2010 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Scott Burns on annuities
Replies: 112
Views: 15790

Re: Why buy a lifetime annuity?

Hi Ken: I'm firmly against 99% of people buying annuities of any sort including SPIAs although many financial writers encourage people to buy them so they will "never outlive their money." The underlined portion of your statement makes sense to a lot of people. I'm not sure if you are encouraging p...
by kenbrumy
Sat Feb 06, 2010 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Scott Burns on annuities
Replies: 112
Views: 15790

I'm firmly against 99% of people buying annuities of any sort including SPIAs although many financial writers encourage people to buy them so they will "never outlive their money." What I've seen is that for a 65 year old to get a return equivalent to laddered high grade corporates they would need t...
by kenbrumy
Sat Feb 06, 2010 11:15 am
Forum: Personal Consumer Issues
Topic: Any fly fisherman on board?
Replies: 21
Views: 2660

The 5 wt rod is a good compromise for a first rod. It's a little light to throw the heavier bass or pike flies but it's good for many good bass flies without being too heavy for panfish. You should have two lines to do what you've described. I recommend you get a WF5F (weight forward, 5 weight, floa...
by kenbrumy
Sat Feb 06, 2010 8:12 am
Forum: Personal Consumer Issues
Topic: scholarship [OP is spammer and has been banned]
Replies: 12
Views: 2034

Athletic scholarships generally pay less than minimum wage for all the hours you would put it. So you could get a job at McDonalds while in college and come out ahead. Here is a recent article with some stats on athletic scholarships: http://www.chron.com/disp/story.mpl/headline/sports/6844161.html...
by kenbrumy
Sat Feb 06, 2010 7:59 am
Forum: Investing - Theory, News & General
Topic: Dow to 8,500
Replies: 50
Views: 9702

This is nothing. There's some guy on the radio in Houston that says the Dow will fall to 50. It has to be true because he's following his own version of the Elliot Wave Theory. If anyone is interested, I'll write down his phone number if I hear him again so you can let him manage your money. Right n...
by kenbrumy
Sat Jan 30, 2010 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Parents of young children: Life insurance question
Replies: 41
Views: 7379

I'm an old timer with my kids all gone. I can't answer the current price type questions but I can give you a little perspective from having been there / done that. As a forewarning, it is safe to assume I hate insurance companies and use as few of their services as I feel prudent. I definitely don't...
by kenbrumy
Fri Jan 29, 2010 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: What Might You Say to Those of us Who Will Never Work Again?
Replies: 43
Views: 7206

I wouldn't complain to much - I've felt as much discrimination in corporate America for looking young as anyone ever did for being old (Example art a job interview: "This is a mentoring role, and you look too young to be a mentor") And there are zero legal protections against age discrimination if ...
by kenbrumy
Fri Jan 29, 2010 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: What Might You Say to Those of us Who Will Never Work Again?
Replies: 43
Views: 7206

It sure sounds like you are describing a downsizing decision that is made on the basis of economics. In many (most?) instances, the older person is paid more than the younger person. The older person needs to be more productive than the younger person, and that typically happens through experience,...
by kenbrumy
Fri Jan 29, 2010 11:52 am
Forum: Personal Investments
Topic: considering hiring a fee only planner. I'm I carzy?
Replies: 47
Views: 6022

Re: considering hiring a fee only planner. I'm I carzy?

I found a local fee only planner that charges 2% per year. This is not a "fee only planner." This is almost the worst sort of blood sucker that tries to pass himself off as a "financial planner." Do be worse he'd have to be recommending annuities. A fee only planner will charge you an initial consu...
by kenbrumy
Fri Jan 29, 2010 11:39 am
Forum: Personal Finance (Not Investing)
Topic: What Might You Say to Those of us Who Will Never Work Again?
Replies: 43
Views: 7206

Sean, Like many here I was terminated when I was over 50. I will say it is a lot harder to find a job at 50+ than it ever was when I had last looked prior to that - age 35. This is what I discovered or, at least, decided about how the world worked for the more senior worker. - Traditional companies ...
by kenbrumy
Fri Jan 29, 2010 11:24 am
Forum: Personal Finance (Not Investing)
Topic: What Might You Say to Those of us Who Will Never Work Again?
Replies: 43
Views: 7206

The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are 40 years of age or older from employment discrimination based on age. The ADEA’s protections apply to both employees and job applicants. Under the ADEA, it is unlawful to discriminate against a person because of hi...