Minnesota BH Seasonal Main Meeting 4/28/18

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Fallible
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Minnesota BH Seasonal Main Meeting 4/28/18

Post by Fallible » Tue Apr 03, 2018 2:03 pm

Minnesota BH Seasonal Main Meeting 4-28-18

Who: All Minnesota Bogleheads and guests. Meetings are free and open to the public and new members are always welcome.

Where: Southdale Library, second-floor meeting room, 7001 York Ave. S, Edina, MN

When: Saturday, April 28, 2018, 9:30 a.m. - 11:30 a.m.


AGENDA

9:30: Welcome: Opening remarks, splinter group update

9:40: Topic: Investment Lessons from History. Speaker: Chris H., member, BH Steering Team.

10:30: Q&A session

10:40: 5-minute break

10:45: Breakout session, 40 minutes length

11:25: Wrap up: return chairs, tables. Thanks for attending!


Topic of the Day: Investment Lessons from History. Speaker: Chris H.

Reliable investment asset-class data extend more than 100 years. In that time, our world has gone through tremendous changes, which provide periods of war, depression, inflation, deflation, and of course bubbles and their collapses, to analyze. Though it is true that “Past performance is not indicative of future returns,” there are some lessons that can be gleaned from perusing data from the past.

This presentation will focus on core asset classes; specifically, how stocks, bonds, and commercial real estate have performed, their fundamental return drivers, and how they can be assembled to meet your goals.


BREAKOUT SESSION TOPICS

A. All-in-one funds:Target/Life cycle, how they work, when to buy/replace.


B. 2018 Taxes Q&A: Exploring new strategies.
Open discussion. Contribute information as well as ask questions.

C. Backdoor Roths/Mega Backdoor Roths: Rules, techniques, and opportunities.

D. Cryptocurrencies: What are they? How do they work?


E. Using a “Bucket” approach for retirement income: Is it right for you?

F. “How Much Can I Spend in Retirement?” by Wade Pfau: a book report.


UPCOMING MEETINGS - Contact information. Online resources.

BH Main Group: Fall/Winter/Spring - Saturday mornings. Local libraries. mnbogleheads@gmail.com

BH East Group: May 19, Caribou, 3100 White Bear Ave. No pre-set agendas. Still Phil. buckp@mac.com

BH West Group: Monthly fall/winter. west sub libraries on Saturdays. Sandra. MNWestinvest@gmail.com

Facebook: MN Bogleheads. Sign up for closed group. Check for updates and local information.

Bogleheads.org: National forum and wiki. Index https:/www.bogleheads.org/forum/index.php

John C. Bogle Center for Financial Literacy: boglecenter.net. Non-profit that helps support the forum, wiki.
Bogleheads® wiki | Investing Advice Inspired by Jack Bogle

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Peter Foley
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Peter Foley » Fri Apr 06, 2018 5:15 pm

The Buckets breakout session should be interesting. There is a recent thread on this referencing Morningstar's Ms. Bentz:
"The Bucket Approach To Retirement Allocation"
http://news.morningstar.com/articlenet ... id=714223
The approach has been controversial since it was popularized by Ray Lucia about 10 years ago.

Kitces also has expressed some opinions on the topic.

Financial Engineer
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Financial Engineer » Mon Apr 09, 2018 6:11 pm

I personally believe in buckets but understand their non-optimal aspects. But in investing it is very important to acknowledge and adapt to the non-optimal aspects of human nature. I will be attending that breakout for sure.
Do you think the market is pricey? S&P 500 CAGR from 1929 peak (CAPE = 32.6) to 1982 low (CAPE = 6.7) was 3.8% real (7.3% nominal). Stay the course.

MindBogleing
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by MindBogleing » Mon Apr 09, 2018 11:38 pm

New to the forum. Looking forward to this meet! Thanks for organizing.

Fallible
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Fallible » Tue Apr 10, 2018 8:14 pm

MindBogleing wrote:
Mon Apr 09, 2018 11:38 pm
New to the forum. Looking forward to this meet! Thanks for organizing.
And welcome to the forum!
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Peter Foley
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Peter Foley » Thu Apr 12, 2018 7:46 pm

The 2018 tax law changes breakout session is intended to provide a brief overview of the changes and solicit questions and strategies regarding how one might modify current practices in light of the change. The two moderators are really looking for input from attendees. A basic question is now that it may not be to your advantage to itemize deductions, what actions can you take to control your effective tax rate?

Financial Engineer
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Financial Engineer » Sat Apr 14, 2018 9:12 am

Though history may not repeat itself, it often rhymes (something similar is dubiously attributed to Mark Twain). I have observed that this aphorism is true for financial markets history, and for this reason it is worth diving into.
Do you think the market is pricey? S&P 500 CAGR from 1929 peak (CAPE = 32.6) to 1982 low (CAPE = 6.7) was 3.8% real (7.3% nominal). Stay the course.

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Peter Foley
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Peter Foley » Mon Apr 16, 2018 8:01 pm

Any insight into how Wade Pfau's How Much Can I Spend in Retirement compares with recent books that have received good reviews?

For example: Living Off Your Money by McClung, and How to Make Your Money Last by Quinn.

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Peter Foley
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Peter Foley » Wed Apr 18, 2018 5:24 pm

Additional information provided regarding the Roth IRA breakout session:
Backdoor Roths / Mega Backdoor Roths: Rules, techniques and opportunities
Backdoor Roth contributions of $5,500 per working individual ($6,500 for those over 50 years of age) are still permissible for 2018 under the new tax code. If you have earned income, come learn the specific mechanics of setting up your backdoor Roth, understand terms like "pro rata" rule limits and "step transaction doctrine" and find out if the backdoor Roth (or Mega backdoor Roth for high income earners) is an opportunity for you to save tax-free dollars for retirement!

While not mentioned by the person leading the breakout session, dollar cost averaging into Roths and barbell Roth contributions might also come up.

Fallible
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Fallible » Fri Apr 20, 2018 7:42 pm

Among the breakout topics for the April 28 meeting is "The Bucket Strategy: Overview/Mechanics/Pros and Cons." For those of you interested in attending this session, here are details from the breakout facilitator:
Financial security in retirement is mostly about income. You can have millions in assets, but if you don't have an income system that works, how are you going to pay your bills and fund your lifestyle? Some retirees solve this problem by using a "bucket strategy". At its core is dividing your assets into 3 buckets to meet spending needs - short term, intermediate-term and long-term.

Come learn the basics of this systematic and straightforward approach.
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Financial Engineer
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Financial Engineer » Sat Apr 21, 2018 1:01 pm

Looking forward to this meeting, now less than a week away!
Do you think the market is pricey? S&P 500 CAGR from 1929 peak (CAPE = 32.6) to 1982 low (CAPE = 6.7) was 3.8% real (7.3% nominal). Stay the course.

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Peter Foley
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Peter Foley » Sun Apr 22, 2018 8:40 am

Additional details from the moderator regarding the Bucket Strategy breakout session:
"The Bucket Strategy"/ Overview/Mechanics/Pros and Cons
Financial security in retirement is mostly about income. You can have millions in assets, but if you don't have an income system that works, how are you going to pay your bills and fund your lifestyle? Some retirees solve this problem by using a "bucket strategy". At its core is dividing your assets into 3 buckets to meet spending needs - short term, intermediate-term and long-term. Come learn the basics of this systematic and straightforward approach.

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Peter Foley
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Peter Foley » Mon Apr 23, 2018 7:20 pm

Details provided by moderator of the Cryptocurrency breakout session:
What is cryptocurrency and how does it work?

As of January 2018, Bitcoin was one of over 1300 cryptocurrencies. Learn about the 5 key components, the virtual 'coin', the digital wallet, the blockchain, the miners, and the network. Cryptocurrency was supposed to be decentralized and low cost. Learn about the actual costs, risks of loss, high volatility, exchange failures, and other unexpected complications.

Perhaps the most important technological contribution of cryptocurreny is the blockchain architecture, which could be used by itself to record tamper-free records of contracts, copyrights, patents, market transactions, and other important records. Recently one of the big local health care organizations announced that it was exploring the use of the blockchain architecture to store our medical records.

Hennepin County Library has several books on this topic.

Fallible
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Fallible » Thu Apr 26, 2018 7:58 pm

A reminder the Minnesota Bogleheads main meeting is this Saturday, April 28, and there’s lots to learn and discuss: Lessons from investment history, all-in-one funds, 2018 taxes Q&A, backdoor Roths/mega backdoor Roths, cryptocurrencies, “bucket” approach, and a report on Wade Pfau’s book, “How Much Can I Spend in Retirement?”

And great Minnesota spring weather - sunny and near 60.
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Peter Foley
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Peter Foley » Fri Apr 27, 2018 7:20 pm

Details regarding the tax law change breakout with moderators Chip T. and Tom R.

We will be reviewing key aspects of the tax reform law and how it might impact tax planning for 2018 and beyond. Some questions we will be considering:

What are the new tax rates?
Will my taxes decrease or increase?
Do I need to change my withholding? If so by how much?
Can I still itemize?
What is the new standard deduction?
Is health insurance still required?
Will my taxes be easier?
What changes with Minnesota taxes?

Note that MN tax law changes are still being debated.

nelsors
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by nelsors » Mon May 21, 2018 8:39 pm

Thank you for the excellent session. Would you please tell the name of the TIAA-CREF Real Account that Chris mentioned?

Is it the TIAA Real Estate Account?
Real Estate As of 3/31/2018
Portfolio Net Assets = $24.9 Billion
Inception Date = 10/02/1995
Symbol = QREARX
Estimated Annual Expenses = 0.85%

Fallible
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Re: Minnesota BH Seasonal Main Meeting 4/28/18

Post by Fallible » Wed May 23, 2018 12:49 pm

nelsors wrote:
Mon May 21, 2018 8:39 pm
Thank you for the excellent session. Would you please tell the name of the TIAA-CREF Real Account that Chris mentioned?

Is it the TIAA Real Estate Account?
Real Estate As of 3/31/2018
Portfolio Net Assets = $24.9 Billion
Inception Date = 10/02/1995
Symbol = QREARX
Estimated Annual Expenses = 0.85%
Hi nelsors,

Here's the reply from Chris:
Yes TIAA Real Estate Account (QREARX) it is. I believe the expense ratio recently dropped to 0.79%. Also I suggest people call TIAA to determine if they are eligible to open an account. I believe in some cases people that work at nonprofits, schools, hospitals, etc. can open an account and get access to TIAA Real Estate even if they do not have an employer plan with them.
Fallible
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