Bogleheads® Live: Submit ?s - Mike Piper on Bequest Allocation & Location

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
Topic Author
JonL
Posts: 444
Joined: Sat May 18, 2013 1:56 am
Location: San Diego, CA

Bogleheads® Live: Submit ?s - Mike Piper on Bequest Allocation & Location

Post by JonL »

'Bogleheads® Live' is a weekly Twitter space where the do-it-yourself investor community asks questions to financial experts – live.

For the Monday, August 15th episode, Mike Piper (AKA Oblivious Investors) returns! We'll be going live at 12:00 PM PST / 3:00 PM EST.

On the topic of bequest allocation and location, Mike shares:
In financial planning we talk a lot about asset allocation — what portion of your portfolio is allocated to US stocks, international stocks, bonds, etc. And we talk about asset location as well, which is the idea that you can achieve tax savings by making sure your least tax-efficient assets are in retirement accounts rather than in taxable accounts where they’ll generate considerable tax costs each year. (For example, if you own a high-yield bond fund or actively managed stock funds with high turnover, it’s best not to own them in taxable accounts.)

I would like to propose the terms bequest allocation and bequest location as well.

Your bequest allocation is what portion of your assets will go to which parties, upon your death (or upon the second death of you and your spouse).

And the bequest location concept is analogous to asset location. That is, after deciding your bequest allocation, it’s wise to take some time to think about which assets should be used to satisfy which parts of your bequest allocation.

The idea is: prioritize Roth for humans, prioritize tax-deferred for charity. And to the extent possible, especially prioritize Roth assets for humans with the highest tax rates.
You can submit your questions below for Mike. (I may include your question in the episode. No guarantees.) Or, you can ask your questions live by joining us on Twitter Spaces.

When we're within one week of the event, I'll include a link.

While anyone can listen to a live Twitter Space event on desktop, you'll need to be using the Twitter app from a mobile device to ask questions (if you’d like to participate in the Q&A).

If you're not already signed up for Twitter, you can do so here: https://twitter.com/. You can sign up with your Google or Apple account, or via phone, or by email.

Looking forward to seeing you there.

Thank you,
Jon Luskin
Host
Bogleheads® Live

P.S. Listen to past episodes of Bogleheads® Live via the podcast: https://www.buzzsprout.com/1973223

The Bogleheads® Live series is hosted by me, Jon Luskin, CFP®, a long-time Boglehead®. This podcast is supported by the John C. Bogle Center for Financial Literacy, a non-profit organization approved by the IRS as a 501(c)(3) public charity on February 6, 2012. Your tax-deductible donation to the Bogle Center is appreciated. You can donate at https://boglecenter.net/donate.
When there are multiple solutions to a problem, choose the simplest one. ~Jack Bogle
User avatar
Taylor Larimore
Advisory Board
Posts: 31473
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Re: Bogleheads® Live: Submit ?s - Mike Piper on Bequest Allocation & Location

Post by Taylor Larimore »

Bogleheads:

Mike Piper, CPA, will be one of the most popular investment authors to be interviewed on Bogleheads Live. Mike has written twelve books available at Amazon. I have included Mike's Investment Gems from two of his books here:

Investment Gems

Best wishes.
Taylor
Jack Bogle's Words of Wisdom:
“Learn every day, but especially from the experiences of others. It’s cheaper!”
"Simplicity is the master key to financial success." -- Jack Bogle
User avatar
Topic Author
JonL
Posts: 444
Joined: Sat May 18, 2013 1:56 am
Location: San Diego, CA

Re: Bogleheads® Live: Submit ?s - Mike Piper on Bequest Allocation & Location

Post by JonL »

Thank you for sharing, Taylor.

:happy
When there are multiple solutions to a problem, choose the simplest one. ~Jack Bogle
GAAP
Posts: 1684
Joined: Fri Apr 08, 2016 12:41 pm

Re: Bogleheads® Live: Submit ?s - Mike Piper on Bequest Allocation & Location

Post by GAAP »

Seems to me that Mike's description leaves out other bequest types like Pet Trusts, etc.

More generally, "bequests" need to consider estate settlement costs -- especially if most assets are POD/TOD like a Roth IRA, etc.
“Adapt what is useful, reject what is useless, and add what is specifically your own.” ― Bruce Lee
User avatar
Topic Author
JonL
Posts: 444
Joined: Sat May 18, 2013 1:56 am
Location: San Diego, CA

Re: Bogleheads® Live: Submit ?s - Mike Piper on Bequest Allocation & Location

Post by JonL »

This is an interesting point, GAAP. Thanks for bringing it up.

I'll add this to our list of topics.
When there are multiple solutions to a problem, choose the simplest one. ~Jack Bogle
Post Reply