Search found 462 matches

by brick-house
Sun Jul 25, 2010 2:13 pm
Forum: Personal Consumer Issues
Topic: 1953--The year I started investing
Replies: 39
Views: 7440

chaz wrote:
Those were the days
http://www.youtube.com/watch?v=znrjbo9QRLk
by brick-house
Sun Jul 25, 2010 2:09 pm
Forum: Investing - Theory, News & General
Topic: Prudential Variable Annuities, et. al.
Replies: 59
Views: 18739

sschullo wrote:
Excellant meth!
Haven't heard that expression since I worked long hours on a crab boat! :P
by brick-house
Sun Jul 25, 2010 11:53 am
Forum: Investing - Theory, News & General
Topic: Prudential Variable Annuities, et. al.
Replies: 59
Views: 18739

Taylor Larimore wrote: Hi Meph: This article by Jane Bryant Quinn, and the quote by the former chairman of TIAA-CREF, reflect your sentiment: One Faulty Investment This 2004 article discusses VAs, it does not discuss VAs with GMIB riders. quote: There's one little corner of the world where VAs might work, says annuity expert Moshe Milevsky of York University in Toronto. If you specifically intend to turn your VA into a future lifetime income, you might do well by buying now. But less than 1 percent of VA holders annuitize, which leaves the other 99 percent... where? Biggs says, darkly, that five years from now insurance execs will be marched, handcuffed, through courts to answer for the way they sell VAs today. It can't happen too soon. The...
by brick-house
Sun Jul 25, 2010 11:16 am
Forum: Investing - Theory, News & General
Topic: Prudential Variable Annuities, et. al.
Replies: 59
Views: 18739

meph wrote:
So, if buying these products make you satisfied, or the OP satisfied, that is your right. That said, people usually come to this forum for good advice, and that is what I always try to give.
You do provide good advice that many(including myself) have learned a great deal from. It would add great value if you could provide details that would demonstrate why these riders are gimmicks.
by brick-house
Sun Jul 25, 2010 9:45 am
Forum: Investing - Theory, News & General
Topic: Ten Stock-Market Myths That Just Won't Die
Replies: 24
Views: 5610

minesweep - great article. Thanks for posting.

My favorite myth from the article:
10 "Stocks outperform over the long term."

Define the long term? If you can be down for 10 or more years, exactly how much help is that? As John Maynard Keynes, the economist, once said: "In the long run we are all dead."
The term long term is often thrown out casually without definition, yet a concrete definition of time frame is a crucial part of the planning process. IMHO- many brokers, financial advisors, and DIY investors "punt" this crucial step of matching investment assets to future liabilities.
by brick-house
Sun Jul 25, 2010 8:52 am
Forum: Investing - Theory, News & General
Topic: Prudential Variable Annuities, et. al.
Replies: 59
Views: 18739

Here is my low level employee in Sector G breakdown. Please pick apart and add. (I really want to dismiss these products outright, but agree with ddb, xrvi, and the intruder that a fully educated investor could find value) The Penn Mutual VA outlined by exrvi sounds too good to be true. Here is my sketch. Pros: • Guaranteed return, • Guaranteed Income for life (highly likely outcome) • Inflation Protection, • Potential for higher return than guarantee (unlikely outcome) Cons: • Reliance on Claim paying ability of insurer, • Complexity of contract, hidden/vague gotchas (raising of fees/expenses, changing investment selections, etc.), • High expenses, • Risk that rates in the future will be much higher than current guaranteed rate 55 year-old...
by brick-house
Sat Jul 24, 2010 11:22 am
Forum: Investing - Theory, News & General
Topic: Scott Burns comments on low interest rates
Replies: 41
Views: 6954

tiddbits wrote: Is anyone aware of a study of the inflation rate for senior citizens? There should really be a cpi "letter" for senior citizen essentials. It could be used for ss and pension colas. Yes, there is. It is called CPI-E. Here is a dated article (2003) that references CPI-E and provides some stats. It is not used for COLAs. The linked article posits that use of CPI-E would fast forward the SS shortfall date by five years. http://www.newyorkfed.org/research/current_issues/ci9-5/ci9-5.html Mindful of these differences, some have urged that social security benefits be adjusted using a price index that captures the spending habits of older Americans.2 Since the early 1980s, the BLS has calculated such an index: the consumer...
by brick-house
Fri Jul 23, 2010 5:50 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: the best way to invest in commodities
Replies: 70
Views: 13495

Lh wrote: You are making huge unsubstantiated statements that you are not supporting. I mean, even to imagine how to support that is difficult. You have done near nothing to show that he is consistently wrong, now consistently obnoxious to you, sure, maybe all of what he says annoys you. But wanna bet, if you took a poll here, if he was "consistently obnoxious" that it would be found "untrue"(see how silly this is, "untrue" is in the eye of the beholder) by a huge margin?????? Hint: do not do the poll. Usually in life, if somone annoys you, you do not say so openly, its impolite right? Its just not the way to go, its unproductive. Consistently wrong. Rick Ferri has been consistently wrong about gold which is a ...
by brick-house
Thu Jul 22, 2010 6:35 pm
Forum: Investing - Theory, News & General
Topic: A few thoughts on the Variable Annuity living benefits
Replies: 17
Views: 4390

ddb wrote: The main opportunity to increase the PV above the minimum guaranteed amount is in the first few years if one lucks out with a good equity market. Nice post. These are interesting products. My initial gut reaction was that they were garbage. However, after reviewing some prospectuses over the past month - I agree that there is a market timing opportunity - as long as the investor is willing to accept that the most probable outcome is guaranteed income for life and the potential of insurance company default. If we get another stock market crash, it might not be a bad idea (for someone 10 - 20 years from retirement) to throw some money in one of these DVAs with the riders. If the market springs back and has an explosive year like 20...
by brick-house
Thu Jul 22, 2010 3:10 pm
Forum: Investing - Theory, News & General
Topic: Moshe Milevsky: Financial Deicide
Replies: 56
Views: 7378

the hobbit wrote:

What was your asset allocation mid 2008?
25% gold, 25% stock, 25% cash (cds, short term treasuries), and 25% Long Term Treasuries.
I was asking the guy with the doom and gloom outlook, not you. Sorry!
What was yours - sunshine? Due to my permanent portfolio, I was able to re-balance into stocks during the downturn. Life gives you lemons...
by brick-house
Thu Jul 22, 2010 9:25 am
Forum: Investing - Theory, News & General
Topic: Moshe Milevsky: Financial Deicide
Replies: 56
Views: 7378

rrsosenkoetter wrote: I said the late 1930s, and yes they were an incredible time to invest... Not saying everyone had money to invest, but anyone who could made a TON of money over the next 20 years. But no one living through that time would have thought that investing was a good idea. Sorry, Help me out -which year in the 1930s shoud someone have picked to start their backtest to show that you would make a ton of money over the next 20 years? Again, who had money to invest in the late 1930s and through the mid 1940s? Again, did they just call up Vanguard and buy the S&P 500 index? I'm currently 50/50 stocks/bonds (at age 41) and will only go lower in stocks as I get older.. Heavy savings rate and conservative investments is the way to...
by brick-house
Thu Jul 22, 2010 9:13 am
Forum: Investing - Theory, News & General
Topic: Moshe Milevsky: Financial Deicide
Replies: 56
Views: 7378

rrsoenkoetter wrote: Heck, let's go back to the late 30s... Great Depression still on-going, Nazi Germany, WWII, think they thought they were living in the "best of times"? No way, but was that a great time to invest? Yes... The 1930s were a great time to invest? Who had money to invest in the 1930s? Who had money to invest during WWII? If they did, did they put into the Vanguard 500 Index fund? Also, weren't dividend yields on stocks like 5%? Since you are such a history buff, how did we get out of the Great Depression? All I'm saying is that this has happened before... this isn't new... They had 10% unemployment in the early 80s too... mid 70s, we had an impeached President.... Do not think that our generation has a monopoly on ...
by brick-house
Thu Jul 22, 2010 5:21 am
Forum: Investing - Theory, News & General
Topic: Moshe Milevsky: Financial Deicide
Replies: 56
Views: 7378

rrosenkoeter wrote: You sound EXACTLY like the guys in the late 1970s... and they REALLY had problems... sky high inflation, oil crisis, a cold war with nukes pointed at us, hostages in the Middle east... 2010 - deflation, oil crisis, two hot wars in the Middle East, nukes held by more countries - No problems here. Everything is way cool. Sure we may have massive government deficits and debt, huge trade deficits, huge future entitlements, managerial capitalism, increasing tax rates in our future, upside down demographic pyramid, 10% unemployment, oversupply of houses, massive consumer debt, etc. - but in the long run that will all sort it self out. Keep on trucking! Diversification and asset allocation DID work as advertised when they were ...
by brick-house
Wed Jul 21, 2010 8:30 pm
Forum: Investing - Theory, News & General
Topic: Fee-Only Conflicts of Interest
Replies: 74
Views: 9624

rick ferri wrote:
The hardest type of an advisor to be is one who says "I dah-no what the market's going to do. I dah-no whether foreign stocks are the place to be." A lot of advisors would love to say they DON'T know, but their afraid to lose clients. These advisors are being honest, but that doesn't work for many investors looking for an excuse.
Many advisors solve that problem by making a 30 year forecast of expected returns. That way you can be honest and say you do not know what will happen in the short term, but maintain credibility by offering a confident prediction of future long term returns backed up by a back-test and academic papers.
by brick-house
Wed Jul 21, 2010 8:19 pm
Forum: Investing - Theory, News & General
Topic: Attention GOLDBUGS! New IRS rule for you.
Replies: 43
Views: 5434

ed2 wrote:
For all of you- Goldmembers new IRS rules for $600 transaction buy/sell, have to file 1099 form.

http://www.roguegovernment.com....s_id=22076

No more "privacy"

All your predictions[ $5000-$20000] going to Guinness book of "BIG HOT AIR BUBBLE". Very Happy
Are you worried that the upcoming 2011 tax increases (capital gains, dividend, and income) will pop the current stock bubble?

Do you think that only U.S. taxpayers are fueling the demand for gold?

You seem to be goldbugged! Quick cure: profit from your vast knowledge of the gold market and short GLD!
by brick-house
Wed Jul 21, 2010 6:26 pm
Forum: Personal Investments
Topic: 60/40 Portfolio versus Permanent Portfolio
Replies: 31
Views: 5872

stratton wrote:
The PP was absolutely horrible from 1981 to 1998 making only a few percent a year.
8.58% with a 7.97 standard deviation - horrible? Sign me up for some of that horrible voodoo.
It only caught up because of two really ugly bear markets in a short period.
Sour grapes alert! Both of those ugly bear markets had quick recoveries (00-02 bear fully, 07-09 partially). The next bear might not recover so quickly!
by brick-house
Wed Jul 21, 2010 6:12 pm
Forum: Investing - Theory, News & General
Topic: Moshe Milevsky: Financial Deicide
Replies: 56
Views: 7378

Great quote! Thanks for posting. I do not agree that he did everything right. He appears to have badly misjudged his risk tolerance chasing that expected return.

At the below link, Moshe Milevsky has some interesting articles including many about annuities and guaranteed income riders. Maybe the prologue is setting up a pitch for annuities with guaranteed minimum income riders.

http://www.researchmag.com/Pages/Resear ... 20MILEVSKY
by brick-house
Mon Jul 19, 2010 9:21 pm
Forum: Investing - Theory, News & General
Topic: Gold prediction time!
Replies: 42
Views: 5524

Rick Ferri wrote: Sure I'm guessing at the price of gold. Isn't everyone? There's no economic "value" in gold. A bar of gold pays no dividends, no interest, and has no growth potential. One bar of gold won't become two bars of gold in 10 years. So, all of this is simple price speculation. You guess one way and I guess the other. As for my $700 per once guess by the end of 2010, the year isn't over yet. Your quote was by 2010, not by the end of 2010. No worries. These days many stockbugs seem to be extending time-frames hoping to obtain their expected returns. You may be right, gold might drop severely. However, you could continue to be wrong and gold's value in dollars will continue to grow. Either way, I will re-balance in a tax ...
by brick-house
Mon Jul 19, 2010 5:36 pm
Forum: Investing - Theory, News & General
Topic: Gold prediction time!
Replies: 42
Views: 5524

Rick Ferri wrote: Year-to-date through June 30, SPDR Gold Shares (GLD) took in $7,682 MM in new assets. That's about 20% of all new supply mined for the year. Over $2,334 MM came in during June alone, which is about triple the amount of gold mined globally that month. Total asset are now over $52 billion. That's more than 7 months worth of total global production. Don't be near the door when the dam breaks! Keep on guessing - eventually you will be right. For someone who markets himself as "the" expert on asset allocation, it is amazing how big your blind spot is on gold. Don't you think there is a place for a gold allocation in a diversified low cost portfolio that has disciplined re-balancing bands? Suggestion for your reading l...
by brick-house
Mon Jul 19, 2010 4:30 am
Forum: Personal Investments
Topic: TIAA-Cref vs ING vs Valic ???
Replies: 36
Views: 18036

raywax wrote: ONLY the TIAA Traditional Account is subject to the requirement that funds transferred out of it must be done via a Transition Payout Annuity (TPA) which pays out the principal and interest in 10-annual distributions over a period of nine years and one day. And even for it this is only true of an RA in all case and a GRA in most cases (execept upon separation from the funding agency). In addition Traditional Account investments in SRAs, GSRAs, and IRAs are fully liquid and can be moved out in ALL cases at will. There is NO such restriction on any other TIAA-CREF Account that I know of and I do not believe there is any of any other T-C Account. I would add that for GRA contracts the withdrawal period is 5 years after terminatio...
by brick-house
Sun Jul 18, 2010 7:01 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: the best way to invest in commodities
Replies: 70
Views: 13495

Thanks for the spell check. Thin skin and sharp elbows are a tough combination. I did not make a personal attack, but instead used clear language (though mis-spelled) and gave an example to support my opinion.
by brick-house
Sun Jul 18, 2010 5:54 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: the best way to invest in commodities
Replies: 70
Views: 13495

rick ferri wrote: Unlike Larry, I've been very consistent Consistently obnoxius. Consistently wrong. rick ferri quote (8/18/2009): I am not tooting my own horn here, but 20 years doing research on asset allocation, 5 books in low cost investing and asset allocation, dozens of articles, thousands of correlation studies, after a attaining a CFA, a MS in finance, and a whole bunch of other stuff that I forgot, I really do not need to do 'research' on a portfolio that has 4 simple asset classes. I call it voodoo because it is. I KNOW what the results are, and know WHY the results WERE that way in the recent past, and WHY it is pure speculation and complete wishful thinking that the results will come anywhere close to those returns in the future...
by brick-house
Sat Jul 17, 2010 8:57 am
Forum: Investing - Theory, News & General
Topic: Only a decade lost?
Replies: 20
Views: 2973

ron wrote:
You are assuming that a retiree takes (whatever percentage) on an annual basis, regardless of what the market does.

As a retiree, I can tell you (at least for me ), that's not reality.
I am not assuming anything, but I think the extend and pretend game that stock-heavy allocators play is dangerous for retirees. I am glad to hear you have the wisdom and flexiblity to lower withdrawals in poor markets. Might that be because you have a nice level of guaranteed lifetime income from a combination of fixed annuity and delayed social security? or is your entire retirement income dependent on the whims of Mr. Market?
by brick-house
Sat Jul 17, 2010 7:35 am
Forum: Investing - Theory, News & General
Topic: Only a decade lost?
Replies: 20
Views: 2973

jeffyscott wrote:
The figures for 60/40 via Vg balanced index with $10,000:

1997 $18,432
1998 $15,395
1999 $13,621
2000 $12,551

Adding foreign, via life strategy moderate growth, would have gotten you to about the same place:

1997 $18,145
1998 $15,289
1999 $13,659
2000 $12,629

and to just keep up with inflation (CPI) you would need:

1997 $13,594
1998 $13,385
1999 $13,096
2000 $12670
Take a 4% inflation adjusted withdrawal from those portfolios and you would be really lost.
by brick-house
Sat Jul 17, 2010 7:14 am
Forum: Investing - Theory, News & General
Topic: Dow 50,000 In Five Years!
Replies: 23
Views: 4835

The Portfolio Solutions website provides 30 year expected return (predictions) sliced down by sub asset classes.

http://www.portfoliosolutions.com/f-13.html

Using the expected return of 8% for Large Cap as a proxy for the Dow, that would mean DOW 100,000 in 2040. The 11% returns for small cap value look really juicy, resulting in an expected value of today's $10,000 to be $228,000 in 30 years.
by brick-house
Sat Jul 10, 2010 11:44 am
Forum: Investing - Theory, News & General
Topic: Paradigm shifts: What is new for personal investors
Replies: 14
Views: 2739

Alex Frakt wrote:
Nothing has changed. The lousy returns of the past 5 years increases expected future returns, not decreases them. The 4% SWR rule of thumb is as useful now as it has ever been.

All the referenced post shows is that people are just as subject to behavioral factors now as they were 5 or 10 years ago.
That rigorous fundamental analysis of the past five years reminds me of Frank Drebin from Police Squad. :P

http://www.youtube.com/watch?v=rSjK2Oqrgic
by brick-house
Sat Jul 10, 2010 6:31 am
Forum: Personal Finance (Not Investing)
Topic: deleted
Replies: 50
Views: 11236

I am a Former Vanguard crew member that started in the call center. Call center is not the only place to start at Vanguard, but the most likely destination even with internships and a finance degree. IMO, Vanguard and the call center is a great place to start a career. Negatives: Pay is not great. I worked 15-20 hours a week at another job for two years before the pay matched my spartan expenses. Very strict and conforming culture. Positives: Vanguard's training is superb. Vanguard's tuition reimbursement is superb. Vanguard aggressively promotes from within, plus has locations in AZ and NC. Vanguard's corporate structure and client focus are great things to learn early in a career. Working in a call center is a challenge, but teaches patie...
by brick-house
Sat Jul 10, 2010 4:21 am
Forum: Investing - Theory, News & General
Topic: Paradigm shifts: What is new for personal investors
Replies: 14
Views: 2739

ddb wrote: "Recency bias" is an overwhelming theme in both the financial media and this forum. No doubt. IMO much of the equity heavy portfolios such as 80/20 were the result of recency bias concerning the 1982 - 2000 bull. In the late 1990s, the financial industrial complex, academia, and the media all suffered a huge dose of recency bias. They went data mining at the top of the bull market. Thus, the back tests and monte carlo simulations led to recommendations of an extremely stock based glide-path while ignoring cash, CDs, SPIAs, gold, TIPS, and Long Term Treasuries. The financial industrial complex has spent the past decade aggressively promoting the stock heavy glide path. Instead of admitting that their recommendations migh...
by brick-house
Wed Jul 07, 2010 4:51 am
Forum: Personal Consumer Issues
Topic: Flash Brindisi
Replies: 8
Views: 2000

Flash Brindisi

http://www.youtube.com/watch?v=_zmwRitYO3w

Impromptu performance by the Philadelphia Opera Company at the Reading Terminal Market. I am not into Opera, but this is really cool. Tremendous voices and pretty funny crowd interaction/reaction.
by brick-house
Sat Jul 03, 2010 5:01 am
Forum: Personal Investments
Topic: Bailing Out of TIAA CREF with 10 years to retirement?
Replies: 52
Views: 7226

livesoft wrote:
If we borrow $50k from our 401(k) plans, we must pay back at a 4.25% interest rate. Guaranteed.
Not if you quit or get downsized! :P
by brick-house
Fri Jul 02, 2010 9:06 pm
Forum: Personal Investments
Topic: Bailing Out of TIAA CREF with 10 years to retirement?
Replies: 52
Views: 7226

tiddbits wrote:
The state employee 457 plan here (OK) has a stable value fund, operated/backed by an insurance company, paying 4.05%. I don't think that's particularly unusual but don't have other specific examples.
Wow! Wish I had that option.

How do they pay 4.05% guaranteed with no liquidity restrictions?
by brick-house
Fri Jul 02, 2010 9:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CEO's "Five-Minute Rule"
Replies: 16
Views: 3701

nisiprius wrote:
1) Can you read a prospectus, any prospectus, in five minutes? I can't. How about if it's the first time you've tried to read one? Do you understand a fund if you haven't read the prospectus?

2) Can the average investor understand the Target Date Retirement funds in less than five minutes?

3) Can the average Boglehead understand the Managed Payout Funds in less than five minutes?
Amen! How long will it take the average investor to understand the Market Neutral fund or the creation of an Irish hedge fund for alternative investments?
by brick-house
Fri Jul 02, 2010 8:30 pm
Forum: Personal Investments
Topic: Bailing Out of TIAA CREF with 10 years to retirement?
Replies: 52
Views: 7226

tiddbits wrote: It pays only 3.0% for new money contributed to most plans. That's not competitive with the other stable annuity accounts that many people seem to have available in their retirement plans, which seem to pay about 4.0%. Even the TIAA product with the 9+yr withdrawal restrictions is paying only 3.5% What Stable Value/Annuity funds are paying 4.0%? I am interested in the particular offering for my own knowledge base. For example, Vanguard's Retirement Savings Trust II is paying 2.99% and the yield is falling. TIAA offers 3.0% guaranteed in SRA, GSRA, and IRA contracts with no liquidity restrictions. 3.5% in RA, GRA, and ATRA contracts (with the ten year restriction in RA, five year in GRA). https://personal.vanguard.com/us/funds...
by brick-house
Mon Jun 21, 2010 7:45 pm
Forum: Investing - Theory, News & General
Topic: Something Doesn't Fit - Economist
Replies: 6
Views: 1915

quote:
Perhaps the explanation is simpler. Martin Barnes of Bank Credit Analyst, a research firm, points out that the direction of official policy (low rates, quantitative easing, big deficits) looks inflationary but the economic fundamentals (a big output gap, sluggish credit growth) look deflationary. Faced with this dichotomy, investors who buy both Treasury bonds and gold are not displaying cognitive dissonance. They are just hedging their bets.
Harry Browne was one sharp dude...
by brick-house
Sun Jun 13, 2010 9:07 pm
Forum: Investing - Theory, News & General
Topic: Five Myths About Asset Allocation
Replies: 25
Views: 6837

Mr. Bogle is one of my heroes, but I disagree with that quote. Meaningless and priceless are pretty strong words. I like this this exchange from one of Harry Browne’s radio shows in 2005: CALLER: [PRPFX] has done extremely well over the life of the fund, has it not? HARRY: Yes. Now there are going to be other funds that have a higher yearly return over a long period. But, they get that return with what I keep referring to as the 'roller coaster ride.' You have these wide swings where you're up one year by 30% and then the next year you're down 15%, and so on. Whereas if you could look at a graph of the Permanent Portfolio Fund or the kind of personal Permanent Portfolio that I recommend, what you'd see is just steady growth year after year,...
by brick-house
Sun Jun 13, 2010 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Stand Alone Living Benefit - Genworth
Replies: 24
Views: 4929

exrvi wrote: There is no reference to surrender charges because there are none. The plot thickens... Thanks for posting this prospectus. It is a very interesting (cue Arte Johnson...)product. My cynical, skeptical, careful side says there is no free lunch. However, the gambler in me thinks this is a neat product. Main risks I see are insurance company solvency, potential for expense hikes in the future, inflation risk, and is there something buried in the prospectus that I am missing. Can't get over that there are no surrender charges. Since there appears to be no surrender charges, then IMHO this becomes a much more interesting product. The prospectus does state that the certificate can be stopped at any time, but I did not find any refere...
by brick-house
Sun Jun 13, 2010 7:26 pm
Forum: Investing - Theory, News & General
Topic: Five Myths About Asset Allocation
Replies: 25
Views: 6837

As for different assets carrying independent risks, that's only true up to a point. These independent risks can be overwhelmed by a larger global economic risk that causes all risky investments to go down together. That's what happened in 1987, 1994, 1998, 2001, 2008 and this year. The Greek debt crisis sent U.S. stocks, foreign stocks and corporate bonds all down together.
The "voodoo" asset allocation mix of 25% gold, 25% stocks, 25% Long Term Treasuries, and 25% Cash held up in all of those periods. :lol:

Gold, Long Term Treasuries, Stocks, and Cash don't all go down together.
by brick-house
Fri Jun 11, 2010 6:13 am
Forum: Personal Finance (Not Investing)
Topic: Stand Alone Living Benefit - Genworth
Replies: 24
Views: 4929

exrvi - I will read the prospectus. However, it is 176 pages so it will take a while; especially with all of the legalese. Couple of things that jumped out at me: Page 23 shows the illustration of the product. Including a total of 3.40% in investment advisory and custodial fees. Page 7 lists out the risks Genworth feels you need to be aware of. Also, Where in the prospectus does it show the ability and consequences (surrender fees) of withdrawing the entire amount? Nothing I read in my quick overview changed my opinion. It appears that you would have a cash/investment account of real money with Genworth Advisory Service that charges 3.40% plus a GMWB rider that provides an account with monopoly money used to determine a minimum guaranteed p...
by brick-house
Thu Jun 10, 2010 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Stand Alone Living Benefit - Genworth
Replies: 24
Views: 4929

Be mindful of "free lunch" risk as well :P
by brick-house
Thu Jun 10, 2010 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Stand Alone Living Benefit - Genworth
Replies: 24
Views: 4929

exrvi wrote: You put in 1,000,000 and they pay you 50, 000 and you pay them 12,500. Then there is a bad year, and the account value drops to 800,000. They pay you 50,000 and you pay them 10,000. In that case, they are paying you 6.3% on your original investment, and you are paying them 1% on the original investment. This contract contains two balances: cash value and the income base. The income base is essentially monopoly money since it is not yours, but is used to figure your initial guaranteed payment. The income base rises by a guaranteed growth rate until you start taking withdrawals. Once withdrawals start, you are guaranteed a certain percentage (5%) of the income base. Your cash value is subject to heavy expenses, plus withdrawals a...
by brick-house
Thu Jun 10, 2010 5:21 am
Forum: Investing - Theory, News & General
Topic: Mel's Forbes Series on Annuities - Part 1 of 6
Replies: 126
Views: 22806

Moshe Milevesky writes a column for Research Magazine about retirement income with a focus on Variable Annuities and Guaranteed Income Benefits. Each month he breaks down a particular product. This article gives a "readers digest" overview of how to break down the offer into a cash equivalent yield. Link to article: http://www.researchmag.com/Issues/2009/August-1-2009/Pages/Annuity-Analytics-What-is-a-Guaranteed-Rate-Really-Worth.aspx quote: In my opinion, advisors should provide clients with the embedded investment return (i.e., the cash-equivalent yield) for the GLiB VAs they sell. The proper way to calculate this uses a three-step process, and it behooves all financial advisors to both understand this process and to explain it ...
by brick-house
Wed Jun 09, 2010 5:23 am
Forum: Personal Investments
Topic: Fidelity Premium Services Account Executive
Replies: 15
Views: 15726

Details of the Fidelity rep compensation are available on Fidelity.com. It will take three clicks from this page to access a PDF description of rep compensation. 1- Hit the link provided below 2- hit the top search link titled "Why Choose Fidelity: Great Value," 3- hit the link to the PDF titled "How our reps are compensated". If the link does not work, type "representative compensation" in the search bar at fidelity.com. http://personal.fidelity.com/global/search/inquira/resultsindex.shtml?question=representative%20compensation quote: Branch Financial Planning Consultants, Branch Account Executives, and PAS Senior Investment Consultants receive a base salary that is approximately 40% of their total annual comp...
by brick-house
Tue Jun 08, 2010 7:58 pm
Forum: Personal Investments
Topic: Fidelity Premium Services Account Executive
Replies: 15
Views: 15726

http://personal.fidelity.com/global/search/inquira/resultsindex.shtml?question=premium%20services Fidelity is offering a new premium services model to mid level clients (250k - 1 million). The premium service will mimic the Private Client Service Group model for clients with 1 million or more. The mid level branch reps (FPCs) will be provided with a book of business of clients with 250k - 1 million with assets in low profit (for fidelity) accounts or high cash balances. They are calling on these clients to offer a planning relationship, but the motive is sales. They have quotas for Portfolio Advisory Service, After Tax Annuities, and Fund flows (fidelity 401k to Fidelity IRA, outside assets, movement from cash to mutual funds). Nothing has ...
by brick-house
Sat Jun 05, 2010 7:39 pm
Forum: Personal Consumer Issues
Topic: RIP John Wooden
Replies: 19
Views: 2714

What an amazing man, life, and legacy. JoeBruin77 thanks for the quotes.

As a hyperactive child this John Wooden quote helped me (still does) to settle down and focus not only on the ball-field, but in the classroom: "Be quick, but don't hurry."
by brick-house
Sat Jun 05, 2010 1:17 pm
Forum: Personal Consumer Issues
Topic: BP protest
Replies: 44
Views: 3823

michealcorleone wrote: Do we have any evidence that the egregious and willful safety violations occurred on this particular rig? (I honestly have no idea, I'm legitimately asking). What if this accident occurred without egregious and willful safety violations? Don't get me wrong, BP is probably the worst safety offender of any major oil company, but to say there is criminal conduct here is silly at this point. http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7765656/BP-spill-inquiry-points-to-multiple-safety-failings.html quote: A preliminary investigation carried out by the beleaguered oil major found there may have been simultaneous problems with the rig's pressure testing, well cementing, safety valves, emergency disconne...
by brick-house
Thu Jun 03, 2010 5:15 pm
Forum: Investing - Theory, News & General
Topic: TIAA-CREF Bold New Plan
Replies: 41
Views: 9973

dickbenson wrote: My opinion is that they should be planning to shrink,.... not in size, but in the number of fund offerings,..... back to original one fund offering.... CREF Stock. I believe that the cost of managing all these new funds is not worth the benefit of giving individuals the ability to design their own allocations of funds. Some people actually pay a 1% fee to a financial advisor to select an appropriate equity allocation for a retirement fund, which CREF Stock automatically does. It's a case of one size almost fitting all, and the much lower costs outweighs the ability of some participants to micromanage. Although recently there has been some decrease in ERs for some funds, the ER of the original CREF Stock Fund has almost dou...
by brick-house
Thu Jun 03, 2010 5:23 am
Forum: Investing - Theory, News & General
Topic: TIAA-CREF Bold New Plan
Replies: 41
Views: 9973

What a hatchet job. The author lists some negatives, but none of the positives. TIAA CREF has a 10 year strategic plan to grow. What a shock! Should they be planning to shrink? Growing the mutual fund business is a positive for investors. More assets under management will mean lower costs (the author failed to mention that TIAA CREF has lowered expense ratios since Roger Ferguson took over). More funds means an expanded roster of choices for investors. It is not like they are planning to add nonsense like Managed Payout and Market Neutral funds. The author failed to mention that part of TIAA CREF's 10 year plan is to expand its hospital retirement business. This is a huge positive for doctors and nurses currently stuck using high priced ins...
by brick-house
Tue Jun 01, 2010 6:06 am
Forum: Investing - Theory, News & General
Topic: Safety-First Investing: A Guide for Risky Times
Replies: 46
Views: 8158

LH wrote: The worst thing that can happen with annuities is when you go to take your money out 20-30 years later, the company is bankrupt.... Much like pension plans. You throw that money in a commingled pot, agents take out thier fees now and going forward yearly out of your money, and you get a promise from a fallible company for money many many years down the road.... I was referring to an SPIA, not an accumulating annuity. IMHO, it makes more sense for accumulators to consider TIPS, Ibonds, and CDS versus fixed annuity products. If 20-30 years after I begin taking annuity payments the company goes bankrupt, then I am happy to have lived into my 80s or 90s. Then, hopefully the state guarantee would cover my payments. Does your annuity &q...
by brick-house
Tue May 25, 2010 3:26 am
Forum: Investing - Theory, News & General
Topic: "Valuations matter" How so?
Replies: 18
Views: 2485

LH wrote: If they "matter" in a meaningful sense, then where is the mutual fund that exploits the valuation going foward? List the best "valuation matters" mutual fund now, and we will see how it does going forward. If there is no mutual fund, and valuations matter, then why is no one exploiting the valuations that matter? PIMCO Total Return Fund, Hussman Funds (Strategic Growth, Strategic Total Return), Berkshire Hathaway, Wellington, Wellesley. I would also add the Permanent Portfolio, but not to exploit valuations by some fundamental or technical analysis. Instead, it takes advantage of valuations by using wildly different asset classes and re-balancing as they swing in price. This allows the PP to provide a steady re...
by brick-house
Fri May 21, 2010 6:58 am
Forum: Investing - Theory, News & General
Topic: Another Investing Myth: More Risk = More Reward ~ Redleaf
Replies: 26
Views: 3773

rick ferri wrote:
The more pessimistic the book titles become, the more optimistic I am about the future of stock prices.
Were you optimistic when Dow 36000 was released? :P