AUTHOR: Howard Schwartz on 8/21/2025 FIRST: Mark Crothers on 8/21/2025 | RECENT: Mark Crothers on 8/21/2025
Comments
When my wife loaned her cousin a lot of money so he could replace his home's septic system, she drew up a note and also a letter with her expectations for repayment terms. He fulfilled the terms and they still have a relationship. If you do not formalize the loan with all the necessary paperwork, it is not really a loan, just an intension written on ice.
My contact at Fidelity told me to make sure to take the QCD before the minimum distribution, then reduce the minimum distribution by the amount of the QCD. Fidelity does not screen the 501(c)3 status of the charity. She said I need to account for it on the tax form. I presume the tax software or preparer knows about this.
"I spent a lot of money on booze, birds and fast cars. The rest I just squandered" George Best when asked where all his football (soccer) earnings went.
Life insurance is one of the tools in the financial toolbox and can have excellent utility if used properly. One example is pairing a universal life policy with a life only annuity or pension. The insurance protects the annuity or pension from premature death and the tax-free lump sum gives the survivor liquidity. Planners used to call this pension max. Now it is called pension 2.0. Of course, the $9.95 per month policy is useless in this case, but a real no load policy can work very well.
You don't need to do anything but here are my suggestions anyway. 1) Sell the 20% stock position a little at a time to avoid a big tax hit. 2) The S&P 500 companies do about 30% of their business outside the US so you could use a little more non-US equities but do not need them. 3) That is a lot of cash for someone with a pension and Social Security. 5-8% is closer to my preference. Take free advice for what it's worth, not much.
I had a 401(k) plan customer about 25 years ago who called me with an unusual question. It was a company in NJ that hired immigrants from Haiti and Puerto Rico. They provided burlap products to the landscaping industry. It was backbreaking work. She told me that a long-time employee approached her to say he had become an American citizen after being here over 20 years. When he gave her his paperwork and SS number she realized he had been using someone else's name and number for all that time. She asked what to do. I referred her question and ultimately all they told her to do was sign him up as a new employee with the correct name and SS number and ignore the past 20 years. She complied and never heard from any government agency while I was involved. Crazy, right?
I spent part of my career in financial services selling investments to institutions, mostly pension plans and endowments. I sold investments like the ones mentioned here which mostly performed very well. There are significant differences in the products I was selling and the products available to individual investors. Mainly, the minimums were in the millions of dollars, and the customers were not going to retire or die, so liquidity was not a primary concern. Finally, most of them hired consultants who knew as much as I did and provided a layer of protection that is not available to retail investors. I would not invest my own money in the products I was selling even if I qualified. Liquidity is too important.
Doug, thanks for the comment. I looked around the internet and found a wide variety of opinions on the total percentage of global equity percentages by country. I will go with VT as you suggest but I guess it's a moving target.
Comments
When my wife loaned her cousin a lot of money so he could replace his home's septic system, she drew up a note and also a letter with her expectations for repayment terms. He fulfilled the terms and they still have a relationship. If you do not formalize the loan with all the necessary paperwork, it is not really a loan, just an intension written on ice.
Post: Opinions Wanted: Please Reply Freely (I’m used to being called an idiot)
Link to comment from March 10, 2026
My contact at Fidelity told me to make sure to take the QCD before the minimum distribution, then reduce the minimum distribution by the amount of the QCD. Fidelity does not screen the 501(c)3 status of the charity. She said I need to account for it on the tax form. I presume the tax software or preparer knows about this.
Post: What is the best way to donate to charity in 2026?
Link to comment from March 6, 2026
"I spent a lot of money on booze, birds and fast cars. The rest I just squandered" George Best when asked where all his football (soccer) earnings went.
Post: How did you avoid being in the 39%?
Link to comment from March 5, 2026
Life insurance is one of the tools in the financial toolbox and can have excellent utility if used properly. One example is pairing a universal life policy with a life only annuity or pension. The insurance protects the annuity or pension from premature death and the tax-free lump sum gives the survivor liquidity. Planners used to call this pension max. Now it is called pension 2.0. Of course, the $9.95 per month policy is useless in this case, but a real no load policy can work very well.
Post: The $9.95 scam…
Link to comment from February 28, 2026
You don't need to do anything but here are my suggestions anyway. 1) Sell the 20% stock position a little at a time to avoid a big tax hit. 2) The S&P 500 companies do about 30% of their business outside the US so you could use a little more non-US equities but do not need them. 3) That is a lot of cash for someone with a pension and Social Security. 5-8% is closer to my preference. Take free advice for what it's worth, not much.
Post: Critique my investment strategy or lack thereof
Link to comment from February 26, 2026
I had a 401(k) plan customer about 25 years ago who called me with an unusual question. It was a company in NJ that hired immigrants from Haiti and Puerto Rico. They provided burlap products to the landscaping industry. It was backbreaking work. She told me that a long-time employee approached her to say he had become an American citizen after being here over 20 years. When he gave her his paperwork and SS number she realized he had been using someone else's name and number for all that time. She asked what to do. I referred her question and ultimately all they told her to do was sign him up as a new employee with the correct name and SS number and ignore the past 20 years. She complied and never heard from any government agency while I was involved. Crazy, right?
Post: What could save Social Security and Medicare or bring it closer to insolvency
Link to comment from February 25, 2026
I spent part of my career in financial services selling investments to institutions, mostly pension plans and endowments. I sold investments like the ones mentioned here which mostly performed very well. There are significant differences in the products I was selling and the products available to individual investors. Mainly, the minimums were in the millions of dollars, and the customers were not going to retire or die, so liquidity was not a primary concern. Finally, most of them hired consultants who knew as much as I did and provided a layer of protection that is not available to retail investors. I would not invest my own money in the products I was selling even if I qualified. Liquidity is too important.
Post: Keep it Simpler
Link to comment from February 23, 2026
Mr. Flack, please do not use the word "gyped"(also spelled gypped). It is a racial slur. Swindled would be better.
Post: Ambulatory Ambivalence
Link to comment from February 23, 2026
"Don't confuse brains with a bull market" Humphrey B. Neill
Post: If you have done well, be proud.
Link to comment from February 18, 2026
Doug, thanks for the comment. I looked around the internet and found a wide variety of opinions on the total percentage of global equity percentages by country. I will go with VT as you suggest but I guess it's a moving target.
Post: Sell America
Link to comment from February 15, 2026