Search found 1083 matches

by senex
Wed Mar 27, 2024 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 42
Views: 2119

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

OP, in case it's not abundantly clear from prior responses: do your estate planning with an attorney that specializes in estates, not with a salesman. You could potentially forego millions of dollars by buying Whole Life. I don't recall ever hearing from a person who decided, based on his own impartial modeling, to buy a Whole Life policy. In all cases I recall, the idea came from a salesman, the confusing analysis came from a salesman, and the subtle but intense pressure to buy came from the salesman. One of the prominent attorneys here has a funny line, something like "whole life reduces estate tax because you have way less money when you die" (due to the massive amount of your wealth consumed by the fees of such products). Best...
by senex
Wed Mar 27, 2024 4:33 pm
Forum: Personal Investments
Topic: Idea of buying land for family restaurant
Replies: 19
Views: 1085

Re: Idea of buying land for family restaurant

What an admirable idea. To buy an asset for $2M that produces $500k/year profit sounds like a pretty good investment, given the other intangibles you've mentioned (like assuming your bro will continue running it successfully). If you personally buy the building, the 500k/year won't accrue directly to you immediately, but it is accruing to your family, which seems to be your goal? Or if want the business to own the building, and if it doesn't qualify for a $2M loan, you could write a private loan to the restaurant for that amount. That might simplify your personal involvement. I would approach the owner now/soon, to give yourself time, and to lock it in before owner changes mind or decides he wants a bidding war or whatever. Best wishes.
by senex
Fri Mar 22, 2024 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Use of LLCs and Trusts for Primary Residence - purpose and when?
Replies: 15
Views: 1276

Re: Use of LLCs and Trusts for Primary Residence - purpose and when?

Some people I know use LLCs for privacy. (Common single-member LLCs don't really provide liability protection that I know of).

Some people I know use living trusts to avoid the delays, costs, and public-record nature of probate. This is especially worth avoiding, I've heard, when the property is in a different state than your residence.
by senex
Fri Mar 22, 2024 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Abode, or Domicile, or Statutory Residency, Or.....?
Replies: 46
Views: 2120

Re: Abode, or Domicile, or Statutory Residency, Or.....?

Not an attorney, but it seems to me like your domicile is pretty ambiguous at this point. Where do you keep your most valuable things and where do you plan to return? Sounds like both. I once lived in a state (not SC) where they revoked the prop tax homestead exemption if you filed income tax as a non-resident. For that reason, and the fact that bureaucracies seem to handle "consistency" better than "change," I myself would probably just decide to be a permanent SC resident. Domicile does not depend on day counts, from what I've read. Some states have statutory residency -- where they tax you as a resident, even if they agree your domicile is elsewhere. You'll need to investigate if GA has such rules. Best wishes.
by senex
Fri Mar 22, 2024 10:10 am
Forum: Personal Investments
Topic: Advice on Moving Out of High-Fee Managed Account
Replies: 12
Views: 908

Re: Advice on Moving Out of High-Fee Managed Account

The logistics are easy: decide where you want the money (Schwab or Fidelity or whatever) and ask them to pull the complete account "in kind" from your current broker. "In kind" means they transfer all the stocks/etfs without selling anything. You never need to speak to the old advisor -- and it's commonly recommended to not even tell old advisor, expect perhaps a courtesy one-line email after you've signed all the paperwork with the new brokerage. (AUM advisors are trained & persuasive salesmen, and part of their training is talking you out of any transfer). Once all assets are in the new account, you can simplify on whatever time/tax timeline you wish. There aren't many tricks to totally avoid capital gains tax when...
by senex
Sun Mar 17, 2024 6:00 pm
Forum: Personal Consumer Issues
Topic: Anyone former RV'ers happy with Tesla Camping?
Replies: 8
Views: 2552

Re: Anyone former RV'ers happy with Tesla Camping?

I am not accustomed to Class B, but I have a Tesla. I don't know exactly what you're asking, but:

* all Teslas are very small inside. If you're thinking you could sleep inside one, yikes.

* well-developed parks may be fine, but I myself would not take a Tesla to the kinds of places I like to camp: far from cities and off paved roads.

Best wishes.
by senex
Sun Mar 17, 2024 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: "Talking with Your Kids or other Heirs"
Replies: 6
Views: 1438

Re: "Talking with Your Kids or other Heirs"

I've read a handful of books in the genre, and my favorite is Collier's Wealth in Families. It isn't focused on your exact question, but I found it to be a concise summary of many issues & ideas in the realm of inheritance. It influenced my thinking.

For what it's worth, in my family, which is high in competence and low in drama, the discussions were pretty open in the 20s-30s age, to everyone's benefit.
by senex
Sun Mar 17, 2024 5:45 pm
Forum: Personal Consumer Issues
Topic: Pretty set financially, but considering relocation to VHCOL (Bay Area) for the career/adventure
Replies: 49
Views: 5282

Re: Pretty set financially, but considering relocation to VHCOL (Bay Area) for the career/adventure

Welcome to the forum.

The comp and career trajectory upside is much larger in person, in my experience.

I agree that long term family support is difficult in VHCOLs. But you're not even married yet. Given that it's a personal dream and ambition, I vote for trying it for a few years. It's a reversible decision. If your comp indeed goes up, I'd expect you could save enough "extra" money to compensate for any increase in MCOL housing cost, should you decide to return to MCOL.

I should add, I made the move into VHCOL areas twice in my career -- and did not regret it. In both cases the extra comp more than made up for any foregone MCOL house purchase.

Best wishes.
by senex
Wed Mar 06, 2024 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Donating appreciated stock
Replies: 11
Views: 688

Re: Donating appreciated stock

The info so far sounds generally correct to me, but there are some additional annoying details.

One is that your tax deduction for the entire fair market value depends on how long you've held the asset. If held more than one year, you get to deduct the FMV, but if held less, you can only deduct the smaller of (current value) and (cost basis).

I don't know how your holding period is defined for inherited stocks -- is it the original purchase date by the deceased, or the date you inherited it? If you want to be extra sure, I'd wait until a full year after the inheritance was received. Or if you want to donate sooner, maybe you could find clear guidance on the IRS website -- not sure.

Best wishes.
by senex
Mon Mar 04, 2024 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Making mistake on my tax return
Replies: 3
Views: 1425

Re: Making mistake on my tax return

I think it's usually best to amend as soon as you discover the error.

If the error is for year 2023 taxes, I'd be surprised if you owe any additional penalties (beyond any underpayment penalty that would have been assessed if you filed your original taxes correctly), as long as you correct it and pay by Apr 15.
by senex
Wed Feb 28, 2024 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: When did your Net Worth surpass your lifetime earnings?
Replies: 93
Views: 11834

Re: When did your Net Worth surpass your lifetime earnings?

It's interesting to think about how the contours would look for the same person, living life multiple times at different incomes. At very low income, I'd expect a low ratio, because all your income goes to food & shelter, leaving little to save/invest. At very high income, the ratio is not as high as one might expect, because tax rates can be very high, spending can be hard to manage (high income jobs tend to be in very high cost of living areas, plus social pressures etc), and part of the growth is taxable (because a larger fraction of net worth is in taxable accounts). There is probably a sweet spot in the middle, where you have enough income to save a decent fraction, and any company match is meaningful in percentage terms, and most ...
by senex
Wed Feb 28, 2024 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: When did your Net Worth surpass your lifetime earnings?
Replies: 93
Views: 11834

Re: When did your Net Worth surpass your lifetime earnings?

britcoal wrote: Wed Feb 28, 2024 2:42 pm OP here.. I appreciate everyone's thoughts so far. I agree it is somewhat meaningless but no more so than a number of metrics that get discussed here on the regular.
Thanks for posting the question. I found it actually quite meaningful, as a single number that captures 3 major factors that are all somewhat within your control: your savings rate, your tax rate, and your investment returns.

And it was certainly actionable, because it motivated me to calculate my number, evaluate my past decisions, and contemplate future goals.
by senex
Wed Feb 28, 2024 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: I got my tax refund today--and it doesn't match what I filed!
Replies: 31
Views: 5547

Re: I got my tax refund today--and it doesn't match what I filed!

As others have said, it is helpful to request your "tax transcript." You can request online or over the phone (the phone can have long wait times). Last time I requested a transcript it was difficult to read -- it contains approximately the same information as your tax return, but in a different and somewhat confusing format. Essentially it contains the values that the IRS thinks are correct. By comparing the IRS's values to your values, I'd expect you could find the discrepancy. For what it's worth, the one time I did so, the discrepancy was due to an IRS calculation error. It took several letters to convince them of their error, with my final one essentially defending myself line-by-line: "my value for line 12 is correct be...
by senex
Mon Feb 26, 2024 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Primer on estate trusts
Replies: 3
Views: 669

Re: Primer on estate trusts

Sadly, there doesn't seem to be any really good book on the subject. The Nolo Press has some good elementary info on estates, but I don't know if they address more complex situations like yours; they didn't when last I looked. One of the best resources I've found are the estate threads on this forum. There are several active estate attorneys who provide a wealth of knowledge. One of the longest-running is bsteiner. If you read threads on which he participates you'll get a good education. You can search for the term "credit shelter trust," which is one of the ways people mitigate state estate taxes. It only covers a particular case, of preserving the estate tax credit after the first spouse dies. If you want to do something more pr...
by senex
Mon Feb 12, 2024 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Just lost my father (age 60). Questions to begin helping my Mom (age 61).
Replies: 22
Views: 3811

Re: Just lost my father (age 60). Questions to begin helping my Mom (age 61).

So sorry for your loss.

1) Not sure.
2) Depends on her assets, liabilities, pension (if any), social security, her spending rate and her risk tolerance. Need to gather that info first.
3) I've seen advisors take advantage of widows. Please be very careful about who she meets and what she signs.
4) Not sure.
5) Bogle's book is good. So is the boglehead wiki.
6) As others have said: make a good accounting, go slowly, take your time, be very careful about what you sign with "advisors"
by senex
Mon Feb 12, 2024 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Asset Protection in Texas
Replies: 1
Views: 399

Re: Asset Protection in Texas

If you're concerned about rental property liability, it's best to consult with a local attorney. There are some generic books, like Asset Protection by Adkisson, who I think is fairly prominent. But I don't recall that book, or other books in the genre, speaking at length about specific risks or giving state-specific details.

If you are the only owner of the LLC, and especially if you are also the manager, it may provide no meaningful liability protection.

Anyone can get sued for anything; it's up to the judge or jury to decide who wins.

I believe there are federal rules governing 401(k) plans, but state law governs many other things -- so you need state-specific legal advice.

Best wishes.
by senex
Fri Feb 09, 2024 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Parent requesting to have assets transferred out of their name
Replies: 46
Views: 3594

Re: Parent requesting to have assets transferred out of their name

BarbBrooklyn wrote: Fri Feb 09, 2024 2:56 pm This works out if you never need to apply for Medicaid.
Can you elaborate?

If she does apply to Medicaid, she simply tells the truth. Is there some downside other than Medicaid potentially clawing back the assets to pay for care, which would not defeat the plan? In fact, such a clawback seems to me like a sign that the plan was effective: child kept assets safe until assets were needed for medical care.
by senex
Fri Feb 09, 2024 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Parent requesting to have assets transferred out of their name
Replies: 46
Views: 3594

Re: Parent requesting to have assets transferred out of their name

OP, a solution we've used in my family is to simply gift assets from parent to child. Child agrees to use assets for benefit of parent. It is very easy and very cheap and very effective if child is trustworthy.

There are potential downsides -- including the fact that a gift retains her cost basis, while an inheritance would step-up the basis. But when the alternative is (perhaps) no inheritance at all (due to parent being manipulated/scammed), a bird in the hand may be worth 2 or 3 in the bush.

Basically, I want to say that, in addition to paperwork-and-bureacracy-heavy solutions, with varying degrees of cost and complexity and effectiveness, she can always just give you complete legal title to the assets.

Best wishes.
by senex
Wed Feb 07, 2024 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: Good book gift for ex-manager and mentor for 50th birthday
Replies: 4
Views: 919

Re: Good book gift for ex-manager and mentor for 50th birthday

saagar_is_cool wrote: Tue Feb 06, 2024 8:28 pm Thank you, this seems more inclined towards financial literacy. He is well settled. I was thinkijg of Beyond the grave bit felt it seems too cheesy dependingn on how he takes it
I'm not offended. But for the sake of clarification, Poor Charlie's Almanac is not really about financial literacy. It's more of a rambling polymath's views on philosophy and human behavior. It is really fascinating.
by senex
Tue Feb 06, 2024 5:19 pm
Forum: Personal Consumer Issues
Topic: EV Charging Station at Home
Replies: 48
Views: 3525

Re: EV Charging Station at Home

I personally think hardwire is an anti-benefit, because it is not a universal open standard.

People I know are installing 14-50. It is as close to universal open standard as exists, I think.
by senex
Mon Feb 05, 2024 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Good book gift for ex-manager and mentor for 50th birthday
Replies: 4
Views: 919

Re: Good book gift for ex-manager and mentor for 50th birthday

The book "Poor Charlie's Almanac" is about Warren Buffett's longtime business partner, Charlie Munger (who recently died at age 99, I think).

It is a large, interesting hardcover book, great for gift-giving. It contains biographical tidbits, reprints of major speeches, and a lot of interesting sidebars, factoids, ancient history, & photographs. It's a great mix of philosophical, financial, and personal development.
by senex
Mon Feb 05, 2024 8:14 pm
Forum: Personal Investments
Topic: Another Bond Fund Question
Replies: 8
Views: 1101

Re: Another Bond Fund Question

Welcome to the forum. "Maturity needs" and "diversity" are separate topics; sometimes they're aligned, sometimes they are at odds. The boglehead mentality is that Total Bond is very diverse. I don't know the underlying stats for your proposals, but it could be that buying several narrow funds is barely more diverse (might even be less diverse) than buying Total Bond. "More funds" does not necessary equate with "more diverse." Maturity needs is another matter. If you know your cash flow (or RMD) requirements and your risk tolerance, then your idea to fine-tune your maturity buckets with individual funds might work great for you. There's a culture on Bogleheads to simplify, simplify -- but in some cases...
by senex
Mon Feb 05, 2024 2:03 pm
Forum: Personal Investments
Topic: Tax loss harvesting VWLUX
Replies: 6
Views: 931

Re: Tax loss harvesting VWLUX

[edited to say: "See the better answer below!"]

Regarding a VWULX restriction: Vanguard sometimes has restrictions that come and go on a fund-by-fund basis to dissuade short term trading. It's best to directly confirm on their website for current status of VWULX, before you take any action.
by senex
Mon Feb 05, 2024 1:59 pm
Forum: Personal Investments
Topic: Cancelled VPAS. Should I stay the course for self management.
Replies: 32
Views: 3731

Re: Cancelled VPAS. Should I stay the course for self management.

Twelve years between posts -- impressive! Welcome back.

1. Given that your portfolio is simple, I like the idea of rebalancing manually. I find that engaging myself once/year is a good practice to keep my mind fresh, to exercise their system, to ensure I still know how to use their website, to spend a little deliberate time in contemplation.

2. In my mind, 3-fund and 5-fund are both really nice and simple in the grand scheme. I aim for 3 funds, and actually have 5 or 6 (due to some funds I acquired long ago and would cause tax liability to remove) -- and I don't worry about it. I personally would not pay tax to reduce from 5 funds to 3, but if I could do it in a tax-free way I would consider it.

Best wishes.
by senex
Sat Feb 03, 2024 5:47 pm
Forum: Personal Investments
Topic: Treasury Direct - The Eternal Wait and No Way To Track Transfer
Replies: 82
Views: 14099

Re: Treasury Direct - The Eternal Wait and No Way To Track Transfer

Thank you to everyone who shared personal experiences here.

Your stories convinced me to close my Treasury Direct account. I originally thought TD was a "safe" place to store money, due to lack of custodian risk. But the inability to access your own money is a risk too, one I hadn't previously appreciated.

For the record, I began the transfer last month and received an email (from a DoNotReply address) saying it would take *at least* 20 weeks. Sigh.

If I remember, I'll post back here when it completes.
by senex
Sat Feb 03, 2024 5:39 pm
Forum: Personal Investments
Topic: For those with experience managing employee stock options, some questions regarding time value
Replies: 4
Views: 442

Re: For those with experience managing employee stock options, some questions regarding time value

Yes, the number used by companies (in my experience) is the number of shares. "3000 stock options" means an option to buy 3000 shares. No multipliers of 100.

There is no straightforward way, known to me at least, to monetize the time value, for the reasons you described. Maybe you could do something approximate by cobbling together LEAPS and rolling them -- but it wouldn't be easy or exact.
by senex
Sat Feb 03, 2024 5:32 pm
Forum: Personal Investments
Topic: Elderly parents were sold a variable annuity
Replies: 48
Views: 7001

Re: Elderly parents were sold a variable annuity

What’s the easiest way to fire the broker (and the associated firm)? Do we ask annuity company to remove them from record? And I guess the 3rd account of municipal bonds… we’d have to ask the broker how to close it? I can tell from the municipal bond account that there is a 1.3% annual admin fee that is charged. Often the easiest method is to go into a local office of Fidelity or Schwab (or other large broker), with your statement, and ask if they will open an account and pull all assets from the old broker. You don't need to notify or even speak to the old broker. FINRA rules require the old broker to promptly send everything that is transferrable to the new broker. Most stocks, bonds, etfs, and mutual funds are transferrable. I'm not sur...
by senex
Sat Feb 03, 2024 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: How do Trustee Services work?
Replies: 25
Views: 2586

Re: How do Trustee Services work?

SHE insisted that if we ever need a non-family member as trustee that it be a bank or brokerage and NOT an attorney. ... There are so many cases of such practitioners stealing from clients it's just dumb to trust an individual with your money, and doing so with a lawyer has similar risks but with someone even less knowledgable about finance (usually). Thanks for sharing. It's the same conclusion I've personally reached based on boglehead trust threads. Something the OP may not know, and seems to be under-mentioned by people's local counsel, is that there are no trust police. Any trustee, whether or not he is a "fiduciary" or has a "duty" to act prudently, can steal your money. Your main recourse is to file a lawsuit -- ...
by senex
Sat Feb 03, 2024 4:51 pm
Forum: Investing - Theory, News & General
Topic: How is initial price for an ETF set?
Replies: 5
Views: 843

Re: How is initial price for an ETF set?

toddthebod wrote: Fri Jan 26, 2024 4:37 pm That's not really true. ETFs have a NAV just like mutual funds, and if the share price drifts sufficiently from the NAV, the fund needs to create or destroy shares to bring them back in line. The initial share price is somewhat arbitrary, like any IPO.
In the usual course of operation funds do not, by themselves, create or destroy shares; Authorized Participants do most of the work. No one "needs" to do anything if the share price drifts from NAV, and that's why they can drift. The market price aligning with NAV is generally due to market forces, not benevolence: when the create/redeem basket is readily obtainable (i.e. not too illiquid), then an AP can profit by pushing the price back toward NAV.
by senex
Fri Jan 26, 2024 4:04 pm
Forum: Investing - Theory, News & General
Topic: How is initial price for an ETF set?
Replies: 5
Views: 843

Re: How is initial price for an ETF set?

ETF prices are set by the market.

I don't know the official answer, but if I were going to start an ETF, I would find a sponsor to create a bunch of units and offer them for sale on the first day of trading. Perhaps I would structure some type of swap contract so that sponsor had bounded downside should the broad market fall.
by senex
Fri Jan 19, 2024 4:32 pm
Forum: Personal Investments
Topic: Withdrawal
Replies: 26
Views: 3517

Re: Withdrawal

I believe the 4% rule of thumb is based on something like a 30 year retirement, and a margin of safety.

Your life expectancy according to the government, knowing nothing other than age and sex, is about 11 years -- in which case you could withdraw significantly more with the same margin of safety. But if you are healthy, you may live far longer, and it would be prudent to adjust accordingly.

One common solution is to use a variable withdrawal rate, where you re-assess every year, based on your health, lifestyle, risk tolerance, and expectations.

Also, at your age, your social security payment should be quite large, I would think.

Best wishes.
by senex
Mon Jan 15, 2024 9:06 am
Forum: Personal Finance (Not Investing)
Topic: IRS statute of limitations
Replies: 12
Views: 2159

Re: IRS statute of limitations

I've had several cases of delayed or confusing correspondence from the IRS. My approach has been to save all documents on both sides (everything I sent or received), plus save my written notes about phone calls or other actions I took ("I sent this letter on date X and got no reply", "I contacted congressman on date Y, spoke to Mrs. Jones", etc).

I don't know the statute of limitations, but paper is small, so I plan to keep those notes indefinitely.

Best wishes.
by senex
Mon Jan 15, 2024 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Gifting partner highly appreciated stock from taxable account
Replies: 16
Views: 2212

Re: Gifting partner highly appreciated stock from taxable account

WillyMcG wrote: Mon Jan 15, 2024 8:22 am She would pay the cap gains at her cap gain rate, but how does this relate to other income? Does it add to her total income? I guess I'm thinking the LT cap gains are treated and paid separately and not added to other ordinary income sources that are taxed at her income tax bracket rate?
Yes, all taxable income is added together to calculate federal AGI (adjusted gross income).

Even if a type of income gets favorable tax *treatment* (like 0% long term cap gains), the income is still reported on your tax form, and still increases your AGI, and may cause other types of income to be taxed more heavily. It's a complicated system.
by senex
Mon Jan 15, 2024 8:39 am
Forum: Personal Investments
Topic: Index Universal Life product
Replies: 57
Views: 6431

Re: Index Universal Life product

prettybogle wrote: Sat Jan 13, 2024 4:20 pm Wow wow I am so surprised there is not even one reply with positive feedback!!
It's not just this thread. Read the historic threads, too. Some replies here have come from industry experts (like Stinky).

The real "wow" is that you are considering an opaque, incomprehensible product that has massive fees and commissions, that you probably don't understand and can't explain why you need, and is being sold to you in a high-pressure environment.

High pressure sales, in particular, indicate that a rational, disinterested assessment of the product is unfavorable -- hence they need to pressure you into buying it.

Best wishes.
by senex
Tue Jan 09, 2024 7:51 pm
Forum: Personal Consumer Issues
Topic: Squat / Bench Rack equipment for tight space
Replies: 59
Views: 14902

Re: Squat / Bench Rack equipment for tight space

c.coyle wrote: Tue Jan 09, 2024 11:25 am EDIT: I consider myself a Boglehead lifter. Avoid gimmick equipment and lots of different exercises. Concentrate on the big compound lifts that work many muscle groups at once. Concentrate on movement patterns, not individual muscle groups: Push (bench press, overhead press), pull (rows, chinups, pullups), hinge (deadlift variations), squat, and loaded carries (farmer walks with dumbbells or FW handles).

You could even get by with just push, pull, and squat. A three lift portfolio, so to speak.
This is beautiful: bogleheads for lifting, a three-lift portfolio. Thank you for sharing.
by senex
Wed Jan 03, 2024 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: CD in inherited taxable account with "estate features"
Replies: 3
Views: 372

Re: CD in inherited taxable account with "estate features"

I'm not sure I fully understand that statement. But if:
- you are allowed to cash it today for 101.8k
- if held til July you would get 102k

Then I know what I would do: I would cash it tomorrow and split the cash among the heirs.
by senex
Wed Jan 03, 2024 2:48 pm
Forum: Personal Investments
Topic: Fixed Income options in taxable
Replies: 4
Views: 831

Re: Fixed Income options in taxable

I personally think anything you listed is in the realm of "reasonable."
Many people around here just do Total Bond. Tilting to shorter duration is fine too.

Given the tax bracket, muni bonds probably yield less (after adjusting for taxation) than taxable bonds.

Individual bonds are more complicated than choosing one etf. I prefer the simplicity of a single etf.

Best wishes.
by senex
Wed Jan 03, 2024 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: CD in inherited taxable account with "estate features"
Replies: 3
Views: 372

Re: CD in inherited taxable account with "estate features"

I haven't dealt with inherited CDs, nor have I heard of "estate features" for them.

However, my general rule in such matters is to gather all relevant data and calculate the actual number of dollars at stake.

For instance, if it's a $50k CD that would forfeit, say, 6 months of interest to immediately redeem it for cash, then you're talking about forfeiting less than $150. In my book, it is worth forfeiting $150 to avoid paperwork, delay, and confusion.

Best wishes.
by senex
Thu Dec 21, 2023 4:58 pm
Forum: Personal Consumer Issues
Topic: Peter Attia podcast alternative?
Replies: 41
Views: 5472

Re: Peter Attia podcast alternative?

VictoriaF wrote: Thu Dec 21, 2023 4:13 pm My minor correction to your thesis is "eat minimally-processed actual food you prepare yourself." For example, I buy organic salads, A2 kefir, nuts, and other things that do not require cooking.
Thanks, Victoria. I have long admired your perspective and precision. Your correction is welcomed. Raw food is another wonderful realm.
by senex
Thu Dec 21, 2023 4:04 pm
Forum: Personal Consumer Issues
Topic: Peter Attia podcast alternative?
Replies: 41
Views: 5472

Re: Peter Attia podcast alternative?

Great thread. Thanks for all the info. I've recently liked podcasts that interview Phil Maffetone (he doesn't host a show, but he's often a guest). He has a wholistic attitude, a consistency (I think he's said basically the same thing for 40 years, vs. the flavor-of-the-month feel of many fitness personalities), and an emphasis on the basics -- diet & movement. I wish every fitness podcast would start with the "bogleheads" approach to fitness: eat minimally-processed actual food you cook yourself, and move your body daily in activities that confer strength, endurance, balance, and range-of-motion. Find whatever activities/variations allow you to persist with minimal injury over years/decades. I wish they'd say that first, then...
by senex
Wed Dec 20, 2023 10:18 am
Forum: Personal Investments
Topic: Young, high net worth and potentially retiring
Replies: 48
Views: 8519

Re: Young, high net worth and potentially retiring

Does this level of spending sound sustainable given the assets? For long-term (40+ year) retirement, I often hear a comfort range of spending 2.5-3% of net worth per year. You seem mostly in that range, though perhaps above it in the initial years once you count all outflows (which includes taxes). What's the most aggressive one would be with their asset allocation in this scenario? Some people advocate large bond/cash exposure, but I disagree due to the inflation risk. My personal opinion is that anywhere from 60/40 stock/bond to 90/10 is reasonable at almost any net worth. In an asset allocation, can real estate be considered "a form of fixed income" because it pays for a fixed expense (my monthly rent) which I would otherwise ...
by senex
Thu Dec 14, 2023 1:35 pm
Forum: Personal Investments
Topic: Close friend receiving large sum of money
Replies: 24
Views: 3469

Re: Close friend receiving large sum of money

I don't know any good resource (other than the insurance threads here) that specifically highlight the downsides of insurance products. It's a hard story to tell, because there are so many insurance products, many of them deliberately opaque, and a few that are actually reasonable choices at times (for instance, SPIAs in some situations). It's admirable to help your friend. Aside from a minority of people who are naturally skeptical or have spent a lifetime building immunity to high pressure sales tactics, most people are pretty defenseless against slick insurance salesmen. A typical advisor will probably cost your friend between 35-70% of his assets over his expected investing lifetime, compared to a 3-fund portfolio. Many people are afrai...
by senex
Mon Nov 27, 2023 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Complicated RMD for doubly inherited IRA
Replies: 3
Views: 614

Re: Complicated RMD for doubly inherited IRA

SuzBanyan wrote: Mon Nov 27, 2023 11:58 am Hope this helps get you started.
Thank you! It helps a great deal.
by senex
Mon Nov 27, 2023 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Complicated RMD for doubly inherited IRA
Replies: 3
Views: 614

Complicated RMD for doubly inherited IRA

Hi Bogleheads, I have a complicated inherited IRA scenario that is not discussed (as far as I can tell) by the IRS guidelines in Pub 590B. * Original IRA owner died in 2015 at age 90 * IRA was split between owner's children. The child of interest was disabled and age 64 when inherited. * (I'm unsure if/how disabled child took any distributions, and the records aren't readily available, but we maybe could find them if required) * Disabled child died in 2018 at age 67. * Disabled child's wife inherited the (previously inherited) IRA at age 67 * Disabled child's wife reaches age 72.5 next year, and is trying to figure out the requirements for RMDs and emptying the account I've struggled to find guidance for this scenario: a doubly-inherited IR...
by senex
Fri Nov 17, 2023 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: How to report sale of inherited land?
Replies: 3
Views: 747

Re: How to report sale of inherited land?

Internet search suggests that TurboTax can handle 1099-S. You will be taxed on the gain while you owned it -- not on the entire proceeds. Thus you need to know your cost basis, which is usually the fair market value on the date of death. If you inherited the property within the past year or so, I believe the standard practice is to use the sale price as the cost basis -- thus producing zero gain. The reasoning is that a sale within a year is good approximation of the fair market value on the date of death. If you inherited it longer ago, you may need to do some searching. If the land was valued on any official government paperwork (an accounting for probate, an estate tax return, etc), you should probably use that value at your basis. If no...
by senex
Fri Nov 17, 2023 2:02 pm
Forum: Personal Investments
Topic: Is it possible to have a MMF sweep account at Schwab, ever?
Replies: 13
Views: 2076

Re: Is it possible to have a MMF sweep account at Schwab, ever?

Running a brokerage is expensive. There are large technical, compliance, and customer service costs.

Schwab defrays those costs partly by paying low interest on cash balances. I don't know of any sweep program, or any way to get a good rate on real cash. (You can buy treasury ETFs, but as you've said, it takes multi steps and introduces delay).

For many of us, that's fine. If you have large, frequent cash needs, Schwab may be a poor fit.
by senex
Thu Nov 16, 2023 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Parents want to give me their house and a large plot of land (by them)
Replies: 27
Views: 4465

Re: Parents want to give me their house and a large plot of land (by them)

OP, I agree with other posters that you have many additional questions to consider.

Regarding your specific question on liability, my umbrella coverage required an underlying "primary" policy on each property, and getting a primary policy on vacant land was difficult.

Also, when I owned property in another state, I visited regularly to replace any fallen/removed No Trespassing signs, to look for signs of illegal use of the land, etc. That takes time and effort. If you don't do it, it may increase your chance of liability-generating events.
by senex
Sun Nov 12, 2023 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: FWIW - DIY Living Trust was easy to do
Replies: 46
Views: 5870

Re: FWIW - DIY Living Trust was easy to do

I was wondering if by "bad titling" you meant something else, where a mistake in titling leads to the property neither being owned by the individual (and landing up in probate), nor being owned by the trust correctly. I've heard recommendations to get real estate retitled to the trust through a lawyer, but didn't know whether that is just because people don't want to deal with the hassle, or if there are deeper gotchas. I think it was Lee who mentioned bad titling. He's an estate attorney and I'm not, so I can't say exactly what he meant. I do know that anything titled solely in the name of the deceased and without a beneficiary/tod designation will go through probate and its associated expense/delay. I've heard that a common &qu...
by senex
Sat Nov 11, 2023 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: FWIW - DIY Living Trust was easy to do
Replies: 46
Views: 5870

Re: FWIW - DIY Living Trust was easy to do

MrJones wrote: Fri Nov 10, 2023 4:53 pm Curious, are there worse consequences in California?
The word on the street is that in California it is often a mistake to allow assets to go through probate, because CA probate is expensive (percent of assets) and lengthy and painful (you sometimes hear about multi-year delays).
by senex
Fri Nov 10, 2023 10:23 am
Forum: Personal Consumer Issues
Topic: Paypal - scam seller - difficulties
Replies: 28
Views: 3691

Re: Paypal - scam seller - difficulties

I don't value it any longer. I thought it protected me. They just side with the seller like most CC disputes but add layers of chatbots and nonsense to address it. This should not be complicated. I received nothing from the seller. I should get a refund and their Paypal account should be shutdown so other people don't get scammed. I agree. I recently closed my Paypal account. It took weeks of frustrating conversations with chatbots and with support people in foreign countries that lacked basic competency and frequently lied. I only succeeded in closing it by emailing the CEO (who it seems had an assistant escalate me to some sort of US-based special call center that actually knew how to close the account). That experience convinced me that...