Search found 1701 matches

by Frugal Al
Wed Oct 14, 2015 9:25 am
Forum: Investing - Theory, News & General
Topic: The Atlantic: "...Surprisingly Lucrative Investment Secrets of Al Gore"
Replies: 6
Views: 2003

Re: The Atlantic: "...Surprisingly Lucrative Investment Secrets of Al Gore"

Frugal Al wrote:You had me at "capitalism-subverting." (Sarcasm Alert) Apparently those capitalists are just too stupid to understand sustainable investments. Investment secrets??? Don't believe the hype. Gore acts like no one else has ever thought of this. Give me a break. It appears to be mostly indexing with an ESG (Environment/Social/Government) tilt. Of course it's nice if you can try to stack the deck by influencing government, which then influences social and environmental. I wonder how much ethanol investment they have. Everyone has their own idea of what is sustainable and environmentally friendly. Much of the the recycling we do is not even net negative carbon. No magic here.
by Frugal Al
Wed Oct 14, 2015 8:31 am
Forum: Investing - Theory, News & General
Topic: The Atlantic: "...Surprisingly Lucrative Investment Secrets of Al Gore"
Replies: 6
Views: 2003

Re: The Atlantic: "...Surprisingly Lucrative Investment Secrets of Al Gore"

You had me at "capitalism-subverting." Apparently those capitalists are just too stupid to understand sustainable investments. Investment secrets??? Don't believe the hype. Gore acts like no one else has ever thought of this. Give me a break. It appears to be mostly indexing with an ESG (Environment/Social/Government) tilt. Of course it's nice if you can try to stack the deck by influencing government, which then influences social and environmental. I wonder how much ethanol investment they have. Everyone has their own idea of what is sustainable and environmentally friendly. Much of the the recycling we do is not even net negative carbon. No magic here.
by Frugal Al
Wed Oct 14, 2015 7:51 am
Forum: Investing - Theory, News & General
Topic: Safe Investment Options
Replies: 50
Views: 8312

Re: Safe Investment Options

Hudson, your initial question is either leading (or misleading), incomplete, ambiguous, or perhaps all of the above. No doubt you'd make a good annuity sales person. The so-called "interest" in the noted scenario would actually be about 2% (today) when measured across the average lifespan for a 70 year old male. An SPIA is more of an insurance contract rather than an investment.
by Frugal Al
Mon Oct 12, 2015 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: A New Reason for Delaying SS
Replies: 76
Views: 11184

Re: A New Reason for Delaying SS

Samtex, especially when there are wide disparities in age, health and SS income, the optimum timing for claiming SS does become more difficult to ascertain. Just taking SS at the latest date is not always optimum. There are some very good SS claiming calculators but I don't have them at this moment. A search might help as they've been discussed and reviewed on this board a number of times.
by Frugal Al
Mon Oct 12, 2015 8:37 am
Forum: Personal Finance (Not Investing)
Topic: A New Reason for Delaying SS
Replies: 76
Views: 11184

Re: A New Reason for Delaying SS

neurosphere wrote: There are exceptions, but I feel the decision of when to draw SS is one case where it's often ok to allow psychology to affect the planning decision.
And I feel allowing psychology to affect the planning decision should be the exception. I know far too many people that really should have delayed taking SS. Many didn't understand the significant benefit of delay, and the extra insurance it can bring to a healthy recipient and spouse. I hope we don't use psychology as a crutch for poorly informed decision making.
by Frugal Al
Mon Oct 12, 2015 8:08 am
Forum: Personal Finance (Not Investing)
Topic: A New Reason for Delaying SS
Replies: 76
Views: 11184

Re: A New Reason for Delaying SS

Odd but we took SS at first opportunity (62/65). We have a sense that we "got ours". We also bought deferred GLWB VAs at the deep end of 2008 (58/62) and saw that at the end of the guaranteed period we would have enough. Odd indeed. Taking early SS while loading up on VA's is exactly what most prospective retirees shouldn't do. Itstoomuch, I'm glad it seems to be working out for you, but your incessant crowing about your VA's seems a bit much. Dare I say too much? VA's (especially most of today's products) are really not a suitable financial tool for most retirees, except perhaps for the extremely risk averse. But that then begs the question of why one would also take early SS, thereby underutilizing the best inflation indexed an...
by Frugal Al
Fri Oct 02, 2015 7:00 am
Forum: Personal Investments
Topic: Cash Balance Retirement Question
Replies: 4
Views: 1114

Re: Cash Balance Retirement Question

The ages of the prospective annuitants would be helpful.
by Frugal Al
Mon Sep 21, 2015 7:58 am
Forum: Personal Finance (Not Investing)
Topic: [Another] Pension Lump Sum Choice
Replies: 9
Views: 1568

Re: [Another] Pension Lump Sum Choice

If you were to roll the pension lump sum of $8100 to an IRA, it would need to grow to $108,750 in order to be able to pay you the same $362.50 per month at age 65. That would require a guaranteed average Annual Percentage Yield of 6.85%. That's higher than you can currently get in any investment that gives you a guaranteed rate of return with no risk at all.jimb Jim, I think you've got your numbers wrong. In general I feel like BH recommends to pass on the lump sum, so am I missing anything? What you're missing is that every situation is different, including the time horizon involved and the significance of the lump sum relative to the overall retirement plan, as well as the need and ability to accept risk. Although the general recommendat...
by Frugal Al
Sat Sep 12, 2015 7:50 am
Forum: Personal Investments
Topic: Defered Variable Annuity
Replies: 24
Views: 1911

Re: Defered Variable Annuity

Chuck it full of Growth funds and it may rocket to heaven and a new "high water mark" or "death benefit" - or crash, but why would i care if I at least get 5% compounded Don't guess- Know how it works. You'll probably find that you can't load it full of growth funds--most insurance companies limit the variable annuities to certain investments and asset class percentages. It can be difficult to address the appropriateness of a specific VA other than to say they are appropriate for almost no one. All insurance companies try to differentiate their products, and they all have their own unique spin on the details of how the products work, as well as their differing sales approaches and obfuscation/confusion inherent with the...
by Frugal Al
Wed Sep 09, 2015 8:53 am
Forum: Personal Finance (Not Investing)
Topic: SIMPLE IRA accountant scam - Is this legal?
Replies: 24
Views: 2663

Re: SIMPLE IRA accountant scam - Is this legal?

If anything, I would claim that Vanguard's online Simple IRA debit system is easier than writing a check. There is absolutely nothing that would come close to incurring $100 worth of inconvenience per month for the accountant--total BS. Yes, this is pure coercion and cronyism.
by Frugal Al
Sat Sep 05, 2015 7:12 am
Forum: Personal Consumer Issues
Topic: Deleted
Replies: 11
Views: 1839

Re: MP3 player for 8 year old

letsgobobby wrote:I am also interested in getting an apple TV to add to my AV receiver, primarily so she can play her music over the stereo and not in headphones: I need to know what she's listening to.
Another alternative is to get a decent set of computer speakers (w/built-in amp) and an adapter cable so she can listen in her own room. I don't like the idea of young children using earbuds and/or headphones. Apparently I'm not alone in this.
http://www.npr.org/templates/story/stor ... Id=9797364
http://www.nbcnews.com/id/24488862/ns/t ... -me-later/
by Frugal Al
Wed Sep 02, 2015 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: About to close on a home we have overbid on - have cold feet
Replies: 74
Views: 14200

Re: About to close on a home we have overbid on - have cold feet

The other issue with high-voltage power lines is that they can be noisy, especially in humid conditions. I once looked at a property that had quite a few trees which obstructed a clear few of the sky and I couldn't understand what the ungodly buzzing/humming was--that made my decision to move on all the easier. http://www.scientificamerican.com/artic ... noise-emi/
by Frugal Al
Sun Aug 30, 2015 3:35 pm
Forum: Investing - Theory, News & General
Topic: Will Single Premium Immediate Annuities be better with higher interest rates?
Replies: 49
Views: 14185

Re: Will Single Premium Immediate Annuities be better with higher interest rates?

What is the difference between an investment and insurance? They both enhance your life. They're both assets that pay out under different circumstances. I don't think it makes sense to make arbitrary distinctions between them. No one is making arbitrary distinctions between them--they are two totally different financial concepts. When you pay your premium to the insurance company your money becomes their money, with their obligation to honor the ascribed to contractual terms. Your money is gone. To be sure, insurance companies often like to conceal the difference and when it's convenient they sometimes act like their products are investments (granted, some complex hybrid products are more investment oriented, as well as more complex and us...
by Frugal Al
Sat Aug 29, 2015 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: CFA Exam Results
Replies: 19
Views: 2991

Re: CFA Exam Results

...The CFA curriculum is for professional investors and covers many topics that people who do not invest in individual stocks do not need, for example the details of financial accounting, including the different ways to account for mergers, or how to use interest rate swaps to change the duration of a bond portfolio. For individual investors, maybe the curriculum for the Chartered Financial Planner designation is more relevant and approachable. It's easy to get the credentials confused, but I think your term Chartered Financial Planner is conflating at least two professional designations: CFP, which is the Certified Financial Planner, and the ChFC, which is the insurance oriented Chartered Financial Consultant credential. I'd definitely ag...
by Frugal Al
Sat Aug 29, 2015 7:50 am
Forum: Personal Finance (Not Investing)
Topic: You want a VA in your IRA?
Replies: 2
Views: 478

Re: You want a VA in your IRA?

Cleverly worded, Alan. We don't want to discuss pending rules/legislation, but missed "opportunities" are fair game. You're right, retiredjg--this is akin to a headline declaring that it will be harder to get athlete's foot in the future due to new cleanliness guidelines in locker rooms. Won't we miss it? :D

The insurance companies are none to happy about this judging from the promotional spots trying to spark action to counter it.
by Frugal Al
Mon Aug 03, 2015 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Is Indexed Universal Life Insurance Best Legacy?
Replies: 36
Views: 4146

Re: Is Indexed Universal Life Insurance Best Legacy?

There is absolutely no insurable need here, especially one that calls for expensive IUL or WL. The idea of leaving a legacy is fine, but let's not leave one for the insurance sales person as well.

The adult children, the intended beneficiaries of said legacy, are capable and gainfully employed, but weak on personal finance skills and investing, I gather. If there is no desire to counter that shortcoming it can be difficult to overcome. Hodson has it right, gift to the kids now, and hopefully point them in the right direction to achieve some financial management/investing skills. Perhaps when the time comes for the balance of the inheritance they'll have the knowledge to manage it.
by Frugal Al
Wed Jul 29, 2015 3:34 am
Forum: Personal Consumer Issues
Topic: Mandatory vehicle collision avoidance systems are coming
Replies: 43
Views: 4566

Re: Mandatory vehicle collision avoidance systems are coming

One piece of tech I've come to personally dislike is the emergency brake assist on my 2015 4runner. A technique I've ingraned in myself over the years is to instantly move my foot to the brake and partially press it whenever something unexpected happens in front of me. This lights up my brake lights as soon as possible to give the guy behind me maximum time to react, and begins slowing me down a bit and I'm ready to slow down further if needed. The system interprets the speed of this action as me trying to panic stop, but figures I'm too much of a girly man to firmly press the brake. So it helpfully applies full braking power and slams me to a halt. That crap is going to get me rear ended. Wow, this is a problem. After years of motorcycles...
by Frugal Al
Tue Jul 28, 2015 1:31 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 125
Views: 28338

Re: Why do people buy annuities?

Call it what you want. A 10-15% "payout" is still higher than you can get on your own, unless you have access to some secret magic investment vehicle. Let's try to stay above arguing petty semantics and stick to the ideas. I'm not just calling it what I want, you are. This is not just petty semantics and we need to clarify ideas here, not mislead and obfuscate. Today, a 75 year-old male can get a payout rate of 9.19% or so. That is clearly not the yield on an investment, but rather the payout rate on the insurance contract , which has been irrevocably purchased. Once again, not magical, because through age 86 (a bit beyond average longevity for a 75 yr old) the annuitant would experience about a 0.2% yield. Through age 90 it's ab...
by Frugal Al
Tue Jul 28, 2015 10:41 am
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 125
Views: 28338

Re: Why do people buy annuities?

rca1824 wrote:Once you start getting quotes for a 10 or 15% yield...
Please stop conflating yield with the payout rate.
by Frugal Al
Tue Jul 28, 2015 8:44 am
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 125
Views: 28338

Re: Why do people buy annuities?

Annuities are a bit magical because they let you tap into the capital of other people who died before you. This form of risk-sharing gives each living person a higher income. Certainly nothing magical here; it's the nature of insurance. Some things we choose not to self-insure against, and that's fine. In the case of a life annuity, the catastrophe being insured against is our own longevity, and the cash flow required to accommodate said longevity. The real benefit with having this longevity insurance is that it allows us to take on more risk with other parts of our portfolio and provides a guaranteed base spending level. Insurance when used properly is a good (great?) thing. Eventually the yield enters double digits and then it's just a n...
by Frugal Al
Wed Jul 22, 2015 3:27 pm
Forum: Personal Investments
Topic: [Pension buyout ] Lump sum help
Replies: 18
Views: 2923

Re: [Pension buyout ] Lump sum help

If (today), I planned on taking the pension at age 62, then my choice is take the guaranteed 3.8% return from now until then by waiting until age 62 to collect the pension... or... invest the lump sum today (and hope to do better than 3.8% over the next 15 years). And, of course, the decision is slightly different for each assumed age at which I might take the pension... which means, "best case", would be a guaranteed return of 4.7% (over 23 years). which brings up all the other factors around life expectancy and etc. So... what would you do? Who here thinks they can do better than a guaranteed 3.8% in 15 years? Actually, you would need to do better than the 3.8% for the your remaining longevity (I think Cruncher is using the SS ...
by Frugal Al
Tue Jul 21, 2015 3:55 pm
Forum: Personal Consumer Issues
Topic: CNBC & Fox Business Websites
Replies: 26
Views: 4009

Re: CNBC & Fox Business Websites

Keiser2015 wrote:I try to avoid all news. If it's important I'll hear about it from my parents or co-workers. Financial news, world news, local news all seems so depressing and negative.
Nothing like well filtered news. Of course instead of just getting the bias of the news org (all news is biased, even Bloomberg) you also get it biased by your parents and co-workers, but in bite sized chunks that won't be too depressing-how nice. Perhaps if we don't hear it, it will go away. I too tried to be an ostrich once, but I didn't have the legs for it.
by Frugal Al
Tue Jul 21, 2015 1:17 pm
Forum: Personal Consumer Issues
Topic: Do you hate your vehicle infotainment system?
Replies: 76
Views: 12846

Re: Do you hate your vehicle infotainment system?

DDMP20 wrote:Are you meaning to imply that in purchasing a new vehicle your top priority is the "infotainment system?"

Honestly that would be pretty low on my list of considerations.
These systems are becoming an integrated part of the control system within the vehicle. Ease of use, or lack thereof, can be a safety issue. This is yet another feature-set of new vehicles that in many cases is not ready for prime time.

As for the UCONNECT system used by Fiat Chrysler, maybe it's too easy to manipulate by iPhone:
http://www.pcworld.com/article/2950490/ ... where.html
by Frugal Al
Wed Jul 08, 2015 6:01 am
Forum: Personal Finance (Not Investing)
Topic: Pension Question - Early Retirement
Replies: 38
Views: 7613

Re: Pension Question - Early Retirement

ubermax wrote:They're not theoretical and they're certainly not accurate or reflective of TB's situation
Uber, you seem to have an ongoing conceptual problem with this issue (this thread and others). I said they (the PV's) are theoretical for this purpose. They do not exist as lump sums, which is fine since lump sums aren't offered. They are, however, illustrative of the respective cash flow values. It is accurate enough information to make an informed decision regarding the pension planning.
by Frugal Al
Tue Jul 07, 2015 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Pension Question - Early Retirement
Replies: 38
Views: 7613

Re: Pension Question - Early Retirement

it doesn't reflect what she would be offered in reality as a lump sum in place of those annuities ; it's more like $122K at age 55 and an estimated $160K at age 65 . I agree the PV method is confusing for non-finance people. And although the PV's are accurate, they are theoretical for this purpose in that they do not reflect actual pension lump sum potential amounts. However, unless you have a crystal ball you have no idea what the lump offer would be at age 65, even an estimation. We could come very close for age 55 by using the appropriate segment rates and mortality, but it seems a moot point at this time since the lump is not on the table. All we can accurately say at this time is that with the significant upside potential of deferring...
by Frugal Al
Sat Jul 04, 2015 3:03 am
Forum: Personal Investments
Topic: Should I Avoid My Adviser? - American Funds to Vanguard
Replies: 25
Views: 8327

Re: Should I Avoid My Adviser? - American Funds to Vanguard

This certainly seems to be an amazing amount of hand wringing over $8k--everyone is making this much more difficult than it needs to be (save for Celia and a couple others). With the limited amount investment we're talking about, just decide upon a simple investment plan at this time. Why the consternation of Life Strategy AND an S&P 500 Index? If you understand what you're investing in and why, you'll realize there's little sense in segmenting between the two funds at this time with such a small amount of investment. At your age and investment amount, choose one. It doesn't matter if it's Schwab or Vangaurd at this stage either, but pick the one you'd prefer to stay with over your long investing career. I certainly wouldn't let the per...
by Frugal Al
Fri Jul 03, 2015 5:22 am
Forum: Personal Investments
Topic: Should I Avoid My Adviser? - American Funds to Vanguard
Replies: 25
Views: 8327

Re: Should I Avoid My Adviser? - American Funds to Vanguard

You don't need a financial adviser at this point or perhaps ever. You're a student with limited or no income so your cap gains rate will be zero. There's no sense in keeping any of your American Capital fund. Close out the fund in it's entirety and get started down the right investing path with Vanguard. Continue to improve your investing knowledge. There might be the question of whether or not you should be investing at this time at all, but investing earlier rather than later is a good thing if one can afford it. As a student with no income and a promising future (hopefully), I doubt anyone would question deferring your investing program.
by Frugal Al
Wed Jul 01, 2015 3:47 am
Forum: Personal Finance (Not Investing)
Topic: Lucent offering pension buyout to retirees: what to do?
Replies: 88
Views: 30026

Re: Lucent offering pension buyout to retirees: what to do?

Here's the paradox. Despite the fact that people don't want to buy annuities - preferring to be their own amateur investment managers - when offered the choice between keeping their current defined benefit pension vs. going to a 403(b) public employees in several states have strongly preferred the DB option (which is, of course, a deferred annuity option). It will be interesting to see what Lucent retirees do, if that information ever becomes public The behavioral paradox in that most people view the act of turning cash over to an insurance company in exchange for a stream of payments that end upon death (usually) differently than receiving a DB pension, even when the present values are nearly equal. The pension is a perceived benefit to w...
by Frugal Al
Wed Jul 01, 2015 2:32 am
Forum: Personal Consumer Issues
Topic: Used, Reliable, Safe, Financially Sound cars
Replies: 56
Views: 10418

Re: Used, Reliable, Safe, Financially Sound cars

Oil usage seems to be a problem with quite a few makes, including Honda and Subaru. As we've said many times, almost all makers have a few skeletons in the closet, reliability wise: http://www.consumerreports.org/cro/maga ... /index.htm
by Frugal Al
Sat Jun 27, 2015 5:14 am
Forum: Personal Finance (Not Investing)
Topic: Assuming Retirement Withdrawal from Portfolio Value
Replies: 14
Views: 2620

Re: Assuming Retirement Withdrawal from Portfolio Value

The other issue is that the annuity calculator that cranks out $40k per year for a $700k SPIA is NOT inflation indexed--it is a fixed $40k per year not adjusted for inflation. The 4% recommendation assumes the payout is corrected for inflation, thus maintaining purchasing power over the 30 years.
by Frugal Al
Wed Jun 24, 2015 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: [CNBC article: Social Security Denying Delayed Benefits]
Replies: 32
Views: 7702

Re: [CNBC article: Social Security Denying Delayed Benefits]

No doubt Kotlikoff is trying to sell columns and books, but he is not wrong that the system really needs improvement. It needn't be as complex as it is. My experience with my local office was pathetic. I was amazed by the overall lack of knowledge there. I love it when governments and/or corporations develop policies under the guise of "helping" their clients, when in reality it isn't helping anyone, but rather a cost savings for the organization. I fail to see why one should have to knowingly "restrict" retroactivity in such a case. This seems to be more of a case of untrained personnel and the proper questions are not being asked of prospective recipients. You shouldn't have to know which "magic words" to say...
by Frugal Al
Sat Jun 20, 2015 2:18 pm
Forum: Personal Consumer Issues
Topic: Anyone have A/C fail on an older Honda CRV?
Replies: 54
Views: 24416

Re: Anyone have A/C fail on an older Honda CRV?

Sorry about your A/C, Browser. As vehicles age things start to fail. What amazes me are the types of failures we see. Of course we know about some of the larger issues, such as their automatic transmissions in the 6 cylinder vehicles, and some of their bad cylinder blocks. But I never thought I'd see a self dimming rr view mirror leak fluid--about $100 bucks. Door lock actuators are another weak spot for aging Hondas--some people can't get their doors open, to the extent some are pushing for a class action suit, calling it a safety hazard. You've had a good run at 170k and 13 years or so, but it's painful for costly repairs on an aged vehicle that you're planning on getting rid of. If you could only find the right new vehicle--my problem to...
by Frugal Al
Fri Jun 05, 2015 8:44 am
Forum: Personal Consumer Issues
Topic: New car warranty about to expire
Replies: 18
Views: 8624

Re: New car warranty about to expire

If the vehicle is running normally, there are no leaks, and all fluids that can easily be checked look and smell normal (especially the tranny oil if an automatic) I'd save my time and money. If you take it to the dealer for an inspection you will be charged, and they will most likely find nothing. There is also the possibility there may be a normal wear and and tear item they will prematurely recommend servicing...on your dime. The TSX is a very reliable vehicle.
by Frugal Al
Thu Jun 04, 2015 9:49 am
Forum: Personal Finance (Not Investing)
Topic: ACA and retiring before 65
Replies: 28
Views: 5344

Re: ACA and retiring before 65

As others have noted, a threshold benefit of ACA is getting coverage and it seems to have bent the cost curve in a good direction.If people with means manipulate their income to achieve undeserved subsidies, $5,000 per year in the example on the blog, then the system will fail and/or the rest of us working and paying would be required to pay more. While I agree with your position on gaming the ACA, the fact of the matter is that the ACA has not bent the cost curve downward--the medical care costs are roughly the same as before the act. The only thing that has changed is how that cost is distributed. The "promise" is that somehow, despite increasing demand for medical services, the cost will get bent downward. I'd say more serious...
by Frugal Al
Tue Jun 02, 2015 12:11 pm
Forum: Personal Investments
Topic: Annuities the Fixed Index Annuity FIA
Replies: 30
Views: 10195

Re: Annuities the Fixed Index Annuity FIA

Why is the SPIA a bad deal? I'd bet there are a lot of people out there in retirement right now that would consider 4.2% ROI guaranteed for the rest of their lives as a good thing? SPIA's are not necessarily a bad deal when used properly. In this case, however, it is a pretty bad deal? You're conflating return of investment with return ON investment, or "payout rate" with "rate of return." How long do you expect to live, tomhole? Over 40 years the rate of return on the $858k lump sum @ $3k/month is about 2.85%. Less than the historical rate of inflation. As soon as you give the insurance company your money it's gone, save for those $3k monthly payments which, after your 20 yr certain, end when you and your spouse end, a...
by Frugal Al
Sun May 31, 2015 6:32 am
Forum: Personal Finance (Not Investing)
Topic: Pension or Unfair Lump Sum
Replies: 39
Views: 11764

Re: Pension or Unfair Lump Sum

I think the OP is saying that the $1M lump sum would only buy a $3900 monthly annuity, whereas the pension would pay $4900. That's a 20% haircut, and probably more than I'd want to take just to have the lump sum. There are many other variables, however, that should be considered. If married, are you comparing 100% joint survivorship payouts?

As far as fair vs unfair terminology, which you apparently got from the wiki, that's still a misleading way to put it. The offer is neither fair nor unfair, it is what it is. The IRS/Treasury determines the methodology for the calculation of the minimum lump sum value of the pension. Granted, pension plans that are adequately funded have the option of offering higher than minimum, but few do.
by Frugal Al
Tue May 19, 2015 7:53 am
Forum: Personal Consumer Issues
Topic: Estate Trustee Auto Title Transfer
Replies: 7
Views: 974

Re: Estate Trustee Auto Title Transfer

I appreciate the insights by all. Carefreeap, I wouldn't have to go to Florida as the seller has the car and the FL title in MD. Dolphin, I agree that this would be much more palatable if this were a MD title in the name of the trust.
by Frugal Al
Mon May 18, 2015 9:06 am
Forum: Personal Consumer Issues
Topic: Estate Trustee Auto Title Transfer
Replies: 7
Views: 974

Re: Estate Trustee Auto Title Transfer

I think I'll probably pass on the deal at this time. One of my concerns is that beneficiaries of the trust might come back and argue against the trustee's actions. Still, I suspect that wouldn't impact my ownership provided the alleged trustee had the right to sell the property, even if negligent in fiduciary duty. In the unlikely event that I were to proceed I think I'll verify the legal firm (independent of the trustee provided info), the circumstances of death, the obituary and background of the deceased. When I asked why the vehicle wasn't sold in FL, the trustee said that it would have meant subsequent travel back to FL to facilitate the sale, and he didn't have the time. Also, the trustee says that just because the consideration is pr...
by Frugal Al
Mon May 18, 2015 6:28 am
Forum: Personal Consumer Issues
Topic: Estate Trustee Auto Title Transfer
Replies: 7
Views: 974

Estate Trustee Auto Title Transfer

I ran across a great deal on a not too expensive sports car, in a hard to find configuration. The previous owner was a professional in Florida that passed away. His estate trustee lives in Maryland, where the car is now, but the title is a FL title with no liens. I live in Ohio. So, if I want this car, which is in Maryland, 300 miles from me, I'll meet with the trustee who will sign off on the title as said trustee for the estate in front of a notary, assigning ownership to me, and I have to bring this Florida title to Ohio to get my own title. Any insight on such a transaction. The trustee says he has a letter from the FL attorneys attesting to his legitimacy as trustee. I get the feeling I should just pass on this due to too many potentia...
by Frugal Al
Thu May 14, 2015 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Pension (annuity) vs lump sum decision
Replies: 10
Views: 1349

Re: Pension (annuity) vs lump sum decision

I didn't look at every option due to taxation rendering most of them a poor choice. However, even assuming a conservative 5% nominal return over the next 23 years or so until age 65, the annuity payout then needed to provide $636 would be about 7.6% for a 100% jt survivorship SPIA. Today that annuity only pays out about 5.36%. A lot can happen in 23 years. How much interest rates might increase over the next 23 years is anyone's guess. On the flip side is inflation risk over 23 years, or more. The real driving factor here is whether or not there will be a perceived need for a guarantee of this cash flow at retirement age, given that it's a relatively minor sum--or will be 23 years hence. Although we don't know the anticipated retirement exp...
by Frugal Al
Thu May 07, 2015 1:48 pm
Forum: Personal Consumer Issues
Topic: New car vs used car -- what's your approach?
Replies: 57
Views: 20464

Re: New car vs used car -- what's your approach?

The TLX is available with a fairly potent 4 cylinder and with that engine the car is a very good value, though probably not quite as good as an Accord 4 cylinder that has almost as much power. Before you totally rule out a 4 cyl you should at least test drive it. I can't recommend Honda/Acura's V6 as I'm not a fan of the VCM, but many people like the later versions of that fuel saving scheme. For the record, my Acura is 16 years old and trouble free--one of the best cars I've owned. If I had to have a 6 cyl I'd also give the Q50 serious consideration.

You've gotten a good run out of the Toyota; it's time to move on. Within reason, buy the car you like.
by Frugal Al
Thu Apr 30, 2015 8:09 am
Forum: Personal Consumer Issues
Topic: Help re Car [convertible]
Replies: 43
Views: 6179

Re: Help re Car [convertible]

Since the OP wants to buy new rather than used, the MX-5/Miata and Mustang are great possibilities at a reasonable cost and inexpensive maintenance--as others have pointed out. I don't think a 2009 Honda S2000 (last year made) would be a good choice, but it's a great sports car in its own right. The OP also claims not to be mechanically inclined, which would kind of lean towards an automatic transmission. It's hard to beat a Miata for top-down fun, a great automatic trans, and bullet proof reliability. And unlike so many problematic power retractable hard tops (PRHT's) on other cars, the Miata's PRHT is extremely robust. With the Miata going through a major model change, there are great deals to be had, although there are no official dealer...
by Frugal Al
Tue Apr 28, 2015 9:06 am
Forum: Personal Investments
Topic: Help with SIMPLE IRA
Replies: 6
Views: 1242

Re: Help with SIMPLE IRA

The Simple IRA will not effect the eligibility to contribute in a personal Roth IRA. For 2015 the Simple IRA contribution limit is $12,500 for those under age 50, and the make-up contribution has been increased to $3,000 for those over age 50, for a max Simple IRA contribution of $15,500 for 2015.
by Frugal Al
Sat Apr 25, 2015 3:15 pm
Forum: Personal Investments
Topic: Retiring August 31, Company terminating pension plan
Replies: 16
Views: 3332

Re: Retiring August 31, Company terminating pension plan

What should I be concerned with in the coming announcements? Should I take the lump sum and be done with it? What sort of "due dilligence" is required when I get the name of the insurance company? Every case is different, and there's not necessarily a right or wrong answer for everyone, especially with such limited financial information. Be certain you're comparing apples to apples, with the lump sum payout compared to 100% survivorship payout, assuming you're married. What's you're SS strategy? Are you in good health? Do you have legacy intent? If it wasn't for the pension being due at this time, would you take your hard earned money and buy an annuity with it under the terms offered. We don't know your age, but at normal retire...
by Frugal Al
Thu Apr 23, 2015 10:50 am
Forum: Personal Consumer Issues
Topic: Cocktail Hobby
Replies: 11
Views: 3372

Re: Cocktail Hobby

For those with the same hobby, any favorite bitters or other ingredients to recommend? We've also found our favorite rum - Pyrat is so far above the rest (not affiliated, arrgr, not a pirate :) +1 on the Pyrat Rum XO Reserve. I first tried Pyrat at their blending operation in Anguilla, and was frustrated that it wasn't easily found in the states--more prevalent now. It's a good sipping rum while not over priced. It's part of the Patron Spirits group, owned by John Paul DeJoria (aka Paul Mitchell, of the overpriced hair stuff). My latest drink of choice using bitters is the Trinidad Sour: about 1.25 oz of Angostura bitters, about equal amount Orgeat (preferably homemade), 3/4 oz Rye whiskey (I like Bulleit), and fresh squeezed lemon. Shake ...
by Frugal Al
Wed Apr 08, 2015 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Lump sum pension vs future annuity
Replies: 7
Views: 1614

Re: Lump sum pension vs future annuity

Are you married or will you be married? Is the $1112 per month 100% survivorship? If not, what is the 100% survivorship payout?
by Frugal Al
Thu Mar 12, 2015 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Pension vs. Lump
Replies: 58
Views: 5504

Re: Pension vs. Lump

And it sounds like you've been doing the calculation before just recently receiving some key tidbits from G$$ . I don't see any benefit to the "key tidbits" that G$$ provided regarding the interest rate used for corporate pension obligations. We're talking different purposes/objectives here. We shouldn't conflate the needs of a plan sponsor to calculate liabilities to that of a pension recipient's IRR. Some of us don't understand that. I do think the OP has a good handle on what to calculate and how. What's nice is the OP already has some data to help indicate the direction of the next segment rates for the lump calculation, which seems to be upward. I would agree that it's probably not worth the wait with quarterly increments. W...
by Frugal Al
Wed Mar 11, 2015 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Pension vs. Lump
Replies: 58
Views: 5504

Re: Pension vs. Lump

g$$ wrote:We're kind of getting off-topic here. Why do you need to know these rates?
Not off topic at all. We need to understand the lookback rates and their timing to determine when the lump sum might change, as well as estimate the direction of that change. I agree with the OP, the timing probably won't get much better to make the decision. Apparently the company is using blended rates, which is fine since the lump sum result should be higher than using unblended. But it seems that the long and short January rates should have been lower than December???
by Frugal Al
Wed Mar 11, 2015 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Pension vs. Lump
Replies: 58
Views: 5504

Re: Pension vs. Lump

g$$ wrote:Plan sponsors are allowed to take an average of any one or more of the five months proceeding the "stability period". The "stability period" can be one month, one quarter, or one year. Most don't average because it is a hassle. Al, that's probably why you haven't seen this averaging before.
Good point. It's the first time I've ever seen it averaged. The result is an average of the segment rates, which are themselves averages. Clear as mud.
by Frugal Al
Wed Mar 11, 2015 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Pension vs. Lump
Replies: 58
Views: 5504

Re: Pension vs. Lump

g$$ wrote:3.8% to 4.5% seems like an OK assumption to me if you're trying to get an IRR for the annuity. I would use a rate similar to that mandated by the IRS (high quality corporate bonds rated AA or above with an emphasis on long duration). Coincidentally, this is the same kind of rate plan sponsors use to value pension obligations in their financial disclosures under US GAAP. For what its worth, the average discount rate used by employers was about 4.00% the last time I checked (mid-February).
The 3.8% to 4.5% is the calculated IRR of the pension cash flow to over 26 years and 30 years, respectively. It is correct. Did you actually read any of the thread?