Do you use a money manager or do you manage your own portfolio?i enjoy fun trading and do well but my serious money is in simple portfolio's that are boring as heck and just do well over time .
Do you use a money manager or do you manage your own portfolio?i enjoy fun trading and do well but my serious money is in simple portfolio's that are boring as heck and just do well over time .
Yes, Math...see what you mean. That is sad when the living spouse has no clue. God bless them all. Talk about trauma x 2.I do all my own trading ....I like trading things that are volatile like oil , gold , Long treasury bond funds ...
But as far as investing goes I can put portfolios together in my sleep ..but for more than 30 years I have been using the fidelity insight newsletter ..
I like them and it keeps me from myself.... I would always be thinking my next move and second guessing the last ... so all I or my wife do is check a weekly e-mail as to any Changes . Changes are rare...following the models is so easy my wife can handle doing it if need be ..so the newsletter keeps me from even thinking about portfolio moves.
Many men dump complex portfolios on their spouse who has no clue and that is not a good thing ..
My wife was a widow when I met her ...her husband dropped a pile of investments in her lap she knew nothing about ....she decides to go to her bank and they hook her up not with a planner but a broker ...he put her in dot com and tech stuff and she lost half her savings ....so today she takes an interest and understands everything we do ..... in fact I don’t even do a trade without her in the loop....so following a newsletter is very easy for her to do with or without me .....Yes, Math...see what you mean. That is sad when the living spouse has no clue. God bless them all. Talk about trauma x 2.
Nice diversification... personally I would have rounded it out with some gold and long term treasuries....it would be like a quasi golden butterfly but with an spiaAgree. I dumped Fidelity's Private Client managed account BS with all the fees. I now have a simple 2 index fund portfolio. Broad market index and bond index. Asset allocation: 20% SP annuity, 25%bonds, 20% cash, 35% equities.
Well, everyone is different, so its just a matter of opinions, huh. I'd see about getting the best interest I could by doing a couple years rate CD laddering or whatever your chosen bank has going right now. Should be able to get 2-1/2% interest I'd think, so that would help. Sounds like a plan, Joe.Thank you all for sharing your thoughts and staying positive on a love 'em or hate 'em topic.
My favorite was: “you give them 100k and get 6k a year , you see zero return for almost 17 years . so you can never say what your return is until you are dead.” Thanks for that one.
My bottomline. If I buy an immediate annuity at 65, I won’t see a return on my money until I’m 82. And if I don’t live that long, my wife gets nothing back.
Instead, I can leave the same money in an interest earning savings account and start $500 a month withdrawals. The interest I earn will add a few more years of guaranteed monthly payments to myself. I do this all by myself without broker commissions - and my wife gets to keep the money if I die sooner.
Do you all agree? Am I missing anything? Trying to keep it simple.
The only caution from me would be that the money in a savings account could disappear, along with the income, if you are sued, encounter huge medical bills, are tempted to use the money for other purposes like home repairs, etc... If you can get along without the extra $6,000.00/year I would take the risk and stay flexible if not I would still consider an annuity.Thank you all for sharing your thoughts and staying positive on a love 'em or hate 'em topic.
My favorite was: “you give them 100k and get 6k a year , you see zero return for almost 17 years . so you can never say what your return is until you are dead.” Thanks for that one.
My bottomline. If I buy an immediate annuity at 65, I won’t see a return on my money until I’m 82. And if I don’t live that long, my wife gets nothing back.
Instead, I can leave the same money in an interest earning savings account and start $500 a month withdrawals. The interest I earn will add a few more years of guaranteed monthly payments to myself. I do this all by myself without broker commissions - and my wife gets to keep the money if I die sooner.
Do you all agree? Am I missing anything? Trying to keep it simple.
The only caution from me would be that the money in a savings account could disappear, along with the income, if you are sued, encounter huge medical bills, are tempted to use the money for other purposes like home repairs, etc... If you can get along without the extra $6,000.00/year I would take the risk and stay flexible if not I would still consider an annuity.
Good luck!
Its always best to check out your state's requirements. A good elder care lawyer can't be beat, if you can find one. Some folks care about leaving assets to their heirs, others don't of course. That in and of itself makes a huge difference on how you might want to stucture things. Exempt beneficiaries could really vary I'd guess. Usually transferring assets into community spousal incomes are good for medicaid shelter purposes.they are used in medicaid planning but there are some caveats .
- Some states either do not allow spousal annuities or put additional restrictions on them.
- Other planning options may be preferable, such as spending down assets in a way that preserves them, transferring assets to exempt beneficiaries or into a trust for their benefit, seeking an increased resource allowance, purchasing non-countable assets, using spousal refusal, or bringing the nursing home spouse home and qualifying for community Medicaid.
- The acquisition of an annuity might require the liquidation of IRAs owned by the nursing home spouse, causing a massive tax liability.
- The non-nursing home spouse may be ill, meaning that he or she may soon need nursing home care. If the spouse goes into the nursing home, too, the annuity payments would go to the nursing home.
- The savings may be small due to a high income or the short life expectancy of the nursing home spouse, and the process of liquidating assets and applying for Medicaid might not be worth the considerable trouble.
Its always best to check out your state's requirements. A good elder care lawyer can't be beat, if you can find one. Some folks care about leaving assets to their heirs, others don't of course. That in and of itself makes a huge difference on how you might want to stucture things. Exempt beneficiaries could really vary I'd guess. Usually transferring assets into community spousal incomes are good for medicaid shelter purposes.
Yes, we are aware of a lot since we went through it with the MIL...years ago. So glad we had sold out most all of her out of state assets, and she had made son Power of Attorney for more than the 5 years required by state law before she went into the nursing home for 9 years. Set up a Miller Trust for her to connect the income dots as she was receiving too much income. Never would have believed anyone could live 9 years flat on their back, mostly... if you call that living I mean...she died in her 95th year!i would never plan any of this on my own ... it is complex .
we have a new york state partnership plan for LTC so we have no look back , spending down , restricted incomes etc .... medicaid just pays the bills once the 3 years insurance is up .
according to our attorney new york , florida and connecticut are big on upholding right of refusal and ordering a negotiated price that does not upset the lifestyle of the community spouse
One can certainly do exactly what what was written above. While the return may be better than allowing an insurance company to do something similar (albeit with a cap), it is a bit more complicated and takes skill that many of us don't have. But I will agree it's a very good way for those with the ability to maximize return.
And nobody should say you "get what the index pays." You get a part of the growth of the market without any risk of loss.
Unless the money accumulation is for personal use I still prefer a single premium life policy tied to the S&P index.
Rick
in over 10,000 different scenario' run by dr wade pfau 67% of the time a a couple who buys an immediate annuity for the oldest spouse , a 40-60% balanced portfolio and single premium life for the younger spouse worked out the best . the tax free life insurance was worth a light to a spouse who has rmd's as a singleI have trouble with the idea of giving up control until I'm firmly planted in the earth.
With most of the old SPLI policies, you have to pay a surrender fee if the going gets tough and you need to access your own money. I would think that for most people it would be better to invest the money in CDs, short term bond funds, etc... and use the income to purchase a term life insurance policy to benefit their heirs.
One can certainly do exactly what what was written above. While the return may be better than allowing an insurance company to do something similar (albeit with a cap), it is a bit more complicated and takes skill that many of us don't have. But I will agree it's a very good way for those with the ability to maximize return.
And nobody should say you "get what the index pays." You get a part of the growth of the market without any risk of loss.
Unless the money accumulation is for personal use I still prefer a single premium life policy tied to the S&P index.
Rick
That is 100% true of older and in fact many current SPLI policies. That is why I only use companies that despite withdrawal penalties will guarantee to return at least when you deposited. So if you put in $100,000 (for example) and the next day you want it back, you get it.I have trouble with the idea of giving up control until I'm firmly planted in the earth.
With most of the old SPLI policies, you have to pay a surrender fee if the going gets tough and you need to access your own money. I would think that for most people it would be better to invest the money in CDs, short term bond funds, etc... and use the income to purchase a term life insurance policy to benefit their heirs.