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I had thought that sometime after that, Fidelity pushed me into a brokerage account. But looking back at the old statement where that transition took place, it seems I voluntarily made the switch. (I can infer that from the fact that I changed the titling of the account, which would not have been done without my consent.)Recently your Fidelity funds account(s) was converted to Fidelity's new account transaction and record keeping system. As a result of this system conversion, you have a new account number(s) and will notice a slight change in the format of your statement. But otherwise your account is the same as before the conversion. Please note that there was no tax consequence to your account due to the system conversion.
https://money.cnn.com/2018/05/11/pf/taxes/annuities-taxes/index.htmlThere is one instance in which annuity payments could be tax free: if you bought an annuity within a Roth IRA or Roth 401(k). In that case, you use after-tax money to buy your annuity and, because it's a Roth, the earnings will grow tax free, as opposed to just tax deferred the way they are in most other annuities.
@Patrick1, were your 2 friends married? Because if they were their spouses will likely benefit from their waiting. As providers, still works in their favor....then 2 friends died at 67 without ever drawing from social security.
https://www.healthaffairs.org/do/10.1377/hblog20190923.51067/full/Record 2019 MLR Rebates Of $1.3 Billion
Section 2718 of the Public Health Service Act, as added by the ACA, establishes an MLR for all health insurers offering individual or group health insurance coverage. This provision applies to grandfathered plans but not self-insured plans, and states can opt to set a higher minimum MLR.
Under Section 2718, insurers must spend a certain percentage of their premium revenue—80 percent in the individual and small group markets and 85 percent in the large group market—on health care claims or health care quality improvement expenses. The remainder of premium revenue can go towards other expenses, such as administrative expenses, profit, and marketing. Insurers must report this information to the Department of Health and Human Services each year, and the data is made publicly available.
If insurers fail to meet an MLR of 80 or 85 percent (meaning they spend too little of their premium revenue on health care claims or quality improvement), insurers must rebate the difference to their enrollees.
Well ok then Skeet!Hi @Starchild,
Thanks for your comment and question that you directed my way. Many of my American Fund holdings came to me via gift and inheritance with some of the funds dating back a couple of generations thus being in family hands all the way back to my great grandfather. As my great grandfather and grandfather sold off farm land they invested the sale proceeds and spread it out among family members with some of it being invested in American Funds. We also have a policy of not putting all of our eggs in a single basket.
Starchild I'd like your thoughts on where I overlap. Please consider manager stradegy with your answer as the funds might occupy the same style boxes, etc. but the managers themselves differ using many different investment strategies. Notice I've got growth, value, momentum, contrarian, equity dividend, fixed income of many types, special opportunity, etc.
I'm posting my sleeve management system along with portfolio positions so you have an understaning of what I actually do own for a better understanding of how I govern family money.
Consolidated Master Portfolio & Sleeve Management System ... Last Revised on 11/15/2019
Now being in retirement here is a brief description of my sleeve management system which I organized to better manage the investments held within mine and my wife's portfolios. The consolidated master portfolio is comprised of two taxable investment accounts, two self directed retirement accounts, a health savings account plus two bank savings accounts. With this, I came up with four investment areas. They are a Cash Area which consist of two sleeves ... an investment cash sleeve and a demand cash sleeve. The next area is the Income Area which consist of two sleeves ... an income sleeve and a hybrid income sleeve. Then there is the Growth & Income Area which has more risk associated with it than the Income Area and it consist of four sleeves ... a global equity sleeve, a global hybrid sleeve, a domestic equity sleeve and a domestic hybrid sleeve. Then there is the Growth Area where the most risk in the portfolio is found and it consist of five sleeves ... a global growth sleeve, a large/mid cap sleeve, a small/mid cap sleeve, an other investment sleeve plus a special investment (spiff) sleeve. The size of each sleeve can easily be adjusted, from time-to-time, by adjusting the number of funds held and their amounts. By using the sleeve management system I can get a better picture of my overall investment landscape. I have found it beneficial to Xray each fund, each sleeve, each investment area, and the portfolio as a whole quarterly for analysis. All my funds with the exception of those in my health savings account pay their distributions to the Cash Area of the portfolio. This automatically builds cash in the Cash Area to meet the portfolio's disbursement needs (when necessary) with the residual being left for new investment opportunity. Generally, in any one year, I take no more than a sum equal to one half of my portfolio's five year average return. In this way principal builds over time. In addition, most buy/sell transactions settle from, or to, the Cash Area with some net asset exchanges between funds taking place. My rebalance threshold is + (or -) 2% of my neutral allocation for my Income Area, Growth & Income Area and Growth Area while I generally let the Cash Area float. However, at times, I can tactically position by setting a target allocation that is different from the neutral weighting to overweight (or underweight) an area without having to do a forced rebalance. I do an Instant Xray analysis of the portfolio quarterly and make asset weighting adjustments as I feel warranted based upon my assessment of the market(s), my goals, my risk tolerance, my cash needs, etc. I have the portfolio set up in Morningstar's portfolio manager by sleeve, by each area and the portfolio as a whole for easy monitoring plus I use brokerage account statements, Morningstar fund reports, fund fact sheets along with their annual reports to follow my investments. In addition, I use my market barometer and equity weighting matrix system as a guide to assist me in throttling my equity allocation through the use of equity ballast, or a spiff position, when desired. I also maintain a list of positions to add (A) to, to buy (B), to reduce (R), or to sell (S). Generally, funds are assigned to a sleeve based upon a best fit basis. Currently, my investment focus is to position new money into income generating assets. The last major rebalanced process was started during the 4th Quarter of 2018 and was completed in the 1st Quarter of 2019 with some sleeves being reconfigured along with the movement to a new asset allocation of 20% cash, 40% income and 40% equity.
Portfolio Asset Allocation: Balanced Towards Income ... 20% Cash, 40% Income, 30% Gr & Inc and 10% Growth
CASH AREA: (Weighting Range 15% to 25%, Neutral 20%, Target 15%, Actual 14%)
Demand Cash Sleeve ... Cash Distribution Accrual & Future Investment Accrual
Investment Cash Sleeve ... MMK Funds: AMAXX, GOFXX(B), PCOXX, CD Ladder(R) & Savings
INCOME AREA: (Weighting Range 35% to 45%, Neutral 40%, Target 40%, Actual 39%)
Income Sleeve: APIUX(A), BLADX(A), GIFAX, JGIAX(A), NEFZX, PGBAX, PONAX & TSIAX
Hybrid Income Sleeve: AZNAX(A), BAICX, CTFAX(A), DIFAX, FBLAX, FISCX, FKINX, FRINX, ISFAX, JNBAX & PMAIX
GROWTH & INCOME AREA: (Weighting Range 25% to 35%, Neutral 30%, Target 30%, Actual 32%)
Domestic Equity Sleeve: ANCFX, FDSAX, INUTX(A) & SVAAX
Domestic Hybrid Sleeve: ABALX, AMECX, HWIAX & LABFX
Global Equity Sleeve: CWGIX, DEQAX, DWGAX(A) & EADIX
Global Hybrid Sleeve: CAIBX, TEQIX & TIBAX
GROWTH & OTHER ASSET AREA: (Weighting Range 5% to 15%, Neutral 10%, Target 15%, Actual 15%)
Large/Mid Cap Sleeve: AGTHX, AMCPX & SPECX
Small/Mid Cap Sleeve: AOFAX, NDVAX & PMDAX
Global Growth Sleeve: ANWPX, NEWFX & SMCWX
Other Investment Sleeve: KAUAX(A), LPEFX & PGUAX
Equity Ballast & Spiff Sleeve: No position held at this time.
Currently, I'm heavy in equity awaiting December mutual fund capital gain distributions that will preform an automatic rebalance of sorts by raising my cash allocation as I recieve all mutual fund distributions in cash. This should bubble me back towards a 20%/40%/40% asset allocation. Equities, indeed, had a nice run this year.
You appear to be saying that because the insurance company is skimming some unknown ("true cost") amount, you're getting less than "a market return" with the annuity. Fair enough, but because of mortality credits, one still comes out better than making "a traditional investment with a market return." The paper uses the net value of immediate annuities, so its results do incorporate their underlying costs.Rational life cycle consumers with no interest in leaving a bequest would always choose to annuitize 100 percent of their wealth. After all, they face a choice between a traditional investment with a market return and an annuity with a market return plus a mortality credit.
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