Last post by Irish247 - January 31, 2021, 10:36:21 AM
Has anyone used a SLAT trust before? I'm considering shifting some security holdings into a SLAT, and thinking of the pros and cons.
They are getting phased out in the next 5 years, but I'm thinking of locking up a couple of them for my wife and I. We would each gift each other a significant amount of stock and assets to ensure protection and to take advantage of the tax free limits.
from fidelity below:
A Spousal Lifetime Access Trust (SLAT) is one of many types of irrevocable trusts utilized for transferring wealth outside of an estate. SLATs provide an opportunity to take advantage of the current federal exclusion before it sunsets, or expires, on December 31, 2025. A properly structured SLAT provides the donor limited, indirect access to the trust assets.
I'm planning on opening a slat for my wife, and her to I. I would shift the assets to each of us in there, and then likely still have access if needed from the non-donor. I also may use the SLAT to purchase additional life insurance just to keep in the wings, for some legacy planning.
Has anyone used this before, or is using it? Any downsides?
Last post by Money Ronin - January 30, 2021, 12:16:05 AM
Despite expectations and logic, 2020 turned out to be a phenomenal year in terms of financial returns. In fact, the entire decade was fairly good especially compared to the prior decade.
Like many of you, I achieved financial independence in large part through a frugal lifestyle and a firm grasp of math. If I invest X amount over Y years, then I can retire by age Z. In 2013, I thought I had enough to retire especially if I supplemented my income with a side hustle. That side hustle was real estate investing which has produced amazing returns.
While I don't expect the good times to continue forever, I also want to enjoy some of these gains. Once again, I've done the math. At the current rate that I spend and projected years that I'll be alive (I'm close to 50), I just won't be able to spend it all. Rather than leave it all to the kids or charity, I'd like to enjoy some of it.
It's really difficult for me to change my frugal mindset, so I'm looking for ideas to splurge and spend big. I'm interested in how you currently splurge or plan to splurge down the road. Personally, I don't care for fancy food or electronics. I love to travel but I don't necessarily need luxury. I'm always interested in unique travel experiences either in luxury or roughing it.
Tp get the ball rolling, I'll mention my one planned splurge for 2021 (hopefully). I've ordered a 2021 Corvette C8 Hardtop Convertible. If the dealer comes through, I'll get it late in 2021 for $80K + tax + docs. I'll probably spend $100K once I'm done with the accessories. This is a completely impractical purchase but what else am I going to do with the money? it's not Ferrari or Aston Martin money. It's completely impractical because: 1. I have nowhere to drive to. I no longer commute anywhere. I don't have any fancy places or events to attend. This was true pre-Covid 2. The only place I went consistently pre-Covd was taking my two kids to school which I cannot do in this two seater. 3. I already own 3 cars; I don't plan on selling any. 4. For the number of days/miles I will drive, it would be far less costly to rent it on Turo.
I see a future where an organic seed neuro network (OSNN) or essentially a slave AI is assigned at birth to every child with the directive of forming a symbiotic relationship, emulating in all regards the child's consciousness, and growing with the child in depth and complexity through adolescence, adulthood and ultimately onto the death of the physical body.
There are many examples throughout science fiction literature of augmented human conscience with thinking machines. These examples range from Orson Scott Cards trans-species, computer-in-habiting, deus ex machina character of Jane. To the Brain Pal™ organic computers in the Old Man's War series by John Scalzi.
I'd also like to point out the His Dark Materials trilogy by Philip Pullman. As these novels feature companion entities to humans that fall somewhere in between the near-omnipotence hyper-intelligences and simple calculators. These creatures, daemons, to use the author's terminology, I feel, are as near to what we could expect from a modern-day implementation say in the next ten years of a OSNN like technology. The OSNNs would be an extension of the human consciences and would have a persona of their own, with the ability to act independently.
Which brings me to my next point, what happens if and when an OSNN crosses the singularity point and begins to act hostile toward humans? In fiction, it rarely bodes well for the humans when there are a bunch of murder machines on the loose. There is usually a bit of a power struggle before one of both of the sides end up as ionizing radiation, or they come to the realization that conflict is a waste of time and decide to walk off into the sunset, that is of course precluding anything crazy like exploding the sun...
To continue there are as before many instances of AI causing a ruckus to the denizens of fantasy. With no particular example in mind you are free to pick your favorite machine with a beef against humanity. I'll list a few for your reference: HAL-9000, 2001: A Space Odyssey (1968), the WOPR a.k.a Joshua from WarGames (1983), Skynet, The Terminator (1984). GLaDOS, Portal (2007) and the Shrike from the Hyperion novels by Dan Simmons.
In fiction an evil AI in nothing more than a tool used by authors and story tellers to explore the darker nature of the human psyche. And what is explained in fiction as a struggle between good and evil will be woefully inadequate to explain the first true interaction between humans and AI.
OSNN or AI will be a tool at first, later an enemy then a friend and finally they will be indistinguishable from one human to the next. When we are faced with the decision on how we choose to handle AI, let's try and walk down the middle of the road with AI as our as partners and friends.
My Ameriprise Dec. statement has a balance of $515,000 and the fees are $626. This fee is the MONTHLY fee. This is a new account that I rolled from a 457 to this IRA account with Ameriprise. Fees are done on a monthly bases on the new balance. This seems extremely high. What are your opinions? Thanks
Last post by lera17 - January 26, 2021, 01:00:08 AM
The best way to make money is to play at the casino. Yes, just a couple of months ago, I would say that this is nonsense, but you just have to try it as you really understand that this is one of the most effective methods of making money. All that is needed is just to choose the right casino, where they will not cheat and cheat. The site https://casinosnotongamstop.info/ helped me I got enough information about different casinos there and began to play quietly for my own pleasure and earn money.
Last post by Jbinjville - January 24, 2021, 12:05:03 PM
Well it's been a year since i jumped in deep into Motley Fool with my investment in Cloud Disruptors so i'll give another update. My total investment in the Cloud Disruptor currently is $69,261 with a current value of $118,968, up almost 72% in a year. All together i have $330K invested at different times last year in several MF portfolios, combined they're up just over 77% for a paper profit of $256K far exceeding my expectations. The cool thing is that 70% of the profit is in Roth IRA's. I hope my posts on this subject have helped other investors in this Forum.
Last post by EmilyMorgan - January 18, 2021, 10:42:51 PM
At first, you should count approximate charges in the coming years. As I understand, you have small children? Kindergarten and school consume A LOT (sometimes enough to refuse a property) I'm not an expert but look for living examples of how to count expenses at https://fitmymoney.com/how-to-buy-a-home/. It helped me to define what rates you can pay.
Last post by prabhat - January 14, 2021, 05:05:57 PM
PanadaAtlanta - Those are pretty good rates for investment property.
I'm in the process of refinancing my first house and was able to secure 1.875% for 15 year fixed (no fees/no points). I think its a great time to lock these rates. FS also mentioned in one of his newsletters.
My sister and I need to sell my mom's townhome in the bay area (California) to provide her cash for assisted living. The townhome is probably going to sell around $1.1M-$1.2M (no mortgage). Her facility costs $10k+/- per month. We are not too worried about her running out of money as she has other assets offshore. But it's easier for us to sell the house now to convert to cash and buy us a few years time.
Now, my wife and mine income combined ($170k per year) would max out at around $1M purchase price or less. And honestly I don't want to go anywhere near that price as the mortgage burden is too huge. A relative suggests that I can still buy my mom's townhome as a discounted price, a price that I can afford, since it is my mom. Let's say I buy it for $800k, our monthly payment would still be $4.5k+/- (PITI HOA PMI), which honestly is still really high for me.
The question is, should I buy it say around $800k? One thing to keep in mind is that my sister and I don't have the best relationship and so that itself is a hurdle on its own. I think she'd do it but it could increase friction for us.
The discount and the fact that it is in the bay area is the main reason I am considering buying.
My wife and I are in our early 30s with combined net worth of $1M+/-. Current I have $100k+ cash before having to sell other houses/stocks. Currently we have little monthly debt, just $1.5k on our primary home in Texas, and we enjoy having the extra cash to either save them or do things that we enjoy (such as travel). Obviously if I should buy the townhome this would change our lifestyle quite a bit. We were planning moving to CA to be closer with my mom anyway, but I was going to cap renting at $3k/month.