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Re: Removing an asset from a living trust: Taxable event ??

Please let me clarify above. I can't comment on pre-nups or the titling of assets before and during marriage (or being attached in a community property state). There may be a way to separate assets for protective purposes outside of a trust, and I am only speaking to the concept of potential asset p...
by Artsdoctor
Thu Mar 26, 2015 3:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Removing an asset from a living trust: Taxable event ??
Replies: 12
Views: 1050

Re: Removing an asset from a living trust: Taxable event ??

Kevin: Good question. The most important thing that I've learned is that all of these idiosyncrasies are driven by state law so I would generally ignore interpretation by anyone not practicing in CA. There are at least separate issues that I believe would be considered: divorce, creditors in bankrup...
by Artsdoctor
Thu Mar 26, 2015 12:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Removing an asset from a living trust: Taxable event ??
Replies: 12
Views: 1050

Re: Munis when moving to a different state

There's a bit more bookkeeping associated with selling muni fund shares at a loss and claiming the loss (which COULD happen in your move next year). You might want to turn off your reinvestment option and just empty the dividends into your money market fund (perhaps investing those dividends in an e...
by Artsdoctor
Wed Mar 25, 2015 10:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Munis when moving to a different state
Replies: 9
Views: 1064

Re: Is it time to give-up on TIPS?

^ dbr, I agree with you. But if someone "gave up" on TIPS this year, they would've missed out on unexpectedly decent returns, if that's what they're interested in. These yields are ridiculously low and it seems that the real yield of a 30-year bond might approach 0% before you know it.
by Artsdoctor
Wed Mar 25, 2015 10:42 pm
 
Forum: Investing - Theory, News & General
Topic: Is it time to give-up on TIPS?
Replies: 110
Views: 13666

Re: Removing an asset from a living trust: Taxable event ??

So perhaps a CA estate attorney can weigh in here. In a community property state, individual assets of Spouse A and Spouse B are, for all practical purposes, co-mingled regardless of the title. Of course, the dates of marriage and/or co-habitation can play a role, and pre-nups are entities unto them...
by Artsdoctor
Wed Mar 25, 2015 10:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Removing an asset from a living trust: Taxable event ??
Replies: 12
Views: 1050

Re: Any situations car leasing makes sense?

I'm surprised at the dogmatic answers. "Never lease." There are plenty of reasons to lease. You can certainly run your lease through your corporation if you're driving a lot for your job. It's easier and "cleaner" from a tax perspective than depreciating. I can't imagine buying a...
by Artsdoctor
Wed Mar 25, 2015 10:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Any situations car leasing makes sense?
Replies: 63
Views: 5059

Re: Removing an asset from a living trust: Taxable event ??

I view a RLT as nothing more than a suitcase holding my possessions and I have the ability to add items to or remove items from that suitcase as I so desire. However, it would be interesting to know what exactly you have titled in the name of the trust that you might want to remove . Some people ma...
by Artsdoctor
Tue Mar 24, 2015 7:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Removing an asset from a living trust: Taxable event ??
Replies: 12
Views: 1050

Re: Removing an asset from a living trust: Taxable event ??

Agreed. Regarding revocable trusts, transferring assets into a trust, between different trusts, and out of trusts should not create a taxable event.
by Artsdoctor
Tue Mar 24, 2015 7:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Removing an asset from a living trust: Taxable event ??
Replies: 12
Views: 1050

Re: Should I invest my emergency fund?

^ Agree with Seattle. In fact, I'd go one step further. You don't have to paint yourself into a corner of dire emergencies. Sometimes, opportunities just come up and you want to take advantage of them. Airfares to Asia are slashed 50% and the Four Seasons is running a once-in-a-lifetime special. Do ...
by Artsdoctor
Sun Mar 22, 2015 5:06 pm
 
Forum: Investing - Theory, News & General
Topic: Should I invest my emergency fund?
Replies: 71
Views: 6038

Re: Should I invest my emergency fund?

There comes a point when you just want liquidity. Things come up, and it doesn't have to be a loss of a job. You're never going to find a consensus here because there's no right answer. In fact, I'd be weary of someone trying to tell you that their way is the best, or only, way. You'd probably be be...
by Artsdoctor
Sun Mar 22, 2015 4:46 pm
 
Forum: Investing - Theory, News & General
Topic: Should I invest my emergency fund?
Replies: 71
Views: 6038

Re: Protect rollover IRA from potential lawsuit

^ Spirit Rider, thanks for the clarification. To me, it's fascinating that there appears to be an awful lot of varying interpretations out there: http://www.latimes.com/la-ira-story3-story.html Even in spending quite a bit of time searching for clear definitions, there's confusion regarding: which r...
by Artsdoctor
Sun Mar 15, 2015 6:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 4109

Re: Emergency fund - importance & lessons learned

Elchris, I'm sorry to hear about your husband's work-related issues. I think you very eloquently relayed the importance of having access to relatively liquid assets. You will inevitably have multiple opinions on how much to have in your Emergency Fund and where to house those funds, but being able t...
by Artsdoctor
Sun Mar 15, 2015 5:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Emergency fund - importance & lessons learned
Replies: 3
Views: 886

Re: Protect rollover IRA from potential lawsuit

There's really only so much protection you can obtain from any investment. Even 401k's can be problematic: Google "bankruptcy and 401k" and you'll find that your funds can be held up for a very long time while your company goes through bankruptcy. The funds are yours and they're protected,...
by Artsdoctor
Sat Mar 14, 2015 11:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 4109

Re: Understanding Your Net Worth

The Burns article is right on the money. We will not have a pension when we retire; some of friends will. They will need far less in savings than we will need, a fact that took quite a while for me to digest. In retirement, it's going to be all about how you're going to generate money to spend--from...
by Artsdoctor
Sat Mar 14, 2015 11:09 am
 
Forum: Personal Finance (Not Investing)
Topic: Understanding Your Net Worth
Replies: 25
Views: 3508

Re: Protect rollover IRA from potential lawsuit

You'll want to discuss the umbrella coverage with your agent. In general, an umbrella policy will not cover work-related activity.
by Artsdoctor
Tue Mar 10, 2015 12:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 4109

Re: Bernstein: 2% investment returns over next 20 years

In order to plan, you have to make some sort of a guess on what real returns you're anticipated. You can't just say, "I don't care, I'll take what I get," because you won't know how much to save and return expectations ultimately are one of the factors that go into deciding on your asset a...
by Artsdoctor
Mon Mar 09, 2015 1:28 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: 2% investment returns over next 20 years
Replies: 216
Views: 22919

Re: Protect rollover IRA from potential lawsuit

^ This is a personal decision and I don't think anyone except for you can answer it. 401k's are more protected but it's all a matter of weighing the pros and cons. I have personally decided to transfer assets out of a 401k as soon as possibile because we've never had good options (fees are too high,...
by Artsdoctor
Mon Mar 09, 2015 1:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 4109

Re: Protect rollover IRA from potential lawsuit

^ An umbrella policy is relatively inexpensive. In CA, the annual premium for a $1M/$3M policy is about $400, and if you'd like a $2M/$4M policy, it's only a little more. For most lawsuits that are likely to come your way, the umbrella will cover it. You need to consider what your umbrella policy wi...
by Artsdoctor
Sun Mar 08, 2015 7:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 4109

Re: Negative bond yields

So if you're betting that bond prices will increase further, you'd be buying the bond for the capital appreciation (and not the coupon). Huh? The question was "What's the point of a negative nominal bond". The answer is collateral for some other financial instrument. The return on the col...
by Artsdoctor
Sun Mar 08, 2015 12:09 pm
 
Forum: Investing - Theory, News & General
Topic: Negative bond yields
Replies: 25
Views: 2340

Re: Negative bond yields

So if you're betting that bond prices will increase further, you'd be buying the bond for the capital appreciation (and not the coupon).
by Artsdoctor
Thu Mar 05, 2015 1:50 pm
 
Forum: Investing - Theory, News & General
Topic: Negative bond yields
Replies: 25
Views: 2340

Re: Do you consider mortgage payments as savings?

I think the most interesting question here is why are we on a 5th page for this thread? Something must have clearly touched a nerve on a lot of people. A house is nothing more than a thing. It's an item that you've purchased. You can either pay cash for it or you can borrow to purchase it. Why is it...
by Artsdoctor
Tue Mar 03, 2015 9:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 410
Views: 20161

Re: Tax Loss Harvesting Bonds??

Sure. Bonds were frequently TLHed back when increased rates were common. We've been in a bond bull market for so long that people have probably not thought much about it. If you're going to do this with a bond fund, you'll need to pay attention to wash sale rules, and you'll definitely need to pay a...
by Artsdoctor
Tue Mar 03, 2015 7:06 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting Bonds??
Replies: 7
Views: 518

Re: International increase in Target Retirement & LifeStrate

Very interesting to see their reallignment. But if you're investing in these funds, you're relinquishing all control to Vanguard for asset allocation. You really wouldn't have any reasonable expectation for things never to change--if you want that kind of control, then you need to control your own a...
by Artsdoctor
Tue Mar 03, 2015 7:02 pm
 
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 224
Views: 18068

Re: Anyone investing in Vanguard Global ex-U.S. Real Estate

I did use VNQI in the past but, in the general scheme of things, it didn't account for enough of my portfolio to really make any significant difference. You can figure out your asset allocation but a typical breakdown might be the following: 70% equities and 30% fixed income for a moderately aggress...
by Artsdoctor
Tue Mar 03, 2015 5:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Anyone investing in Vanguard Global ex-U.S. Real Estate ETF
Replies: 16
Views: 1138

Re: Holding bond funds to average duration

Nobs, The reason you're having difficulty with this is because it IS difficult. Duration is not a guarantee. There is a misconception that "if you hold a fund for its duration," you'll reach "a point of indifference." While this is a guide, it's definitely not a guarantee. Durati...
by Artsdoctor
Thu Feb 26, 2015 8:18 pm
 
Forum: Investing - Theory, News & General
Topic: Holding bond funds to average duration
Replies: 20
Views: 1735

Re: physicians [Frustrated, considering early retirement]

^ (above). Exactly. Your focus is right on target. You're employed by an institution, don't have to worry about administrative issues, are better at balancing personal and professional life, and you're young. If I were starting out, I'd do the same as you're doing.
by Artsdoctor
Wed Feb 25, 2015 7:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: physicians [Frustrated, considering early retirement]
Replies: 132
Views: 9383

Re: physicians [Frustrated, considering early retirement]

Yes, I'm sad to say that I'm winding down. I'm in private practice and have really loved it. But I can clearly see 60 in front of me, I've reached my saturation point with all of the increasingly cumbersome (and ludicrous) regulations; the cons now outweigh the pros. I've been on call every third we...
by Artsdoctor
Wed Feb 25, 2015 7:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: physicians [Frustrated, considering early retirement]
Replies: 132
Views: 9383

Re: Individual TIPS

Offshore: While some people don't mind the bookkeeping associated with TIPS in a taxable, most are happier holding TIPS (and REITs for that matter) in a tax-advantaged account. If you're new to TIPS, I would not recommend that you purchase them in your taxable account.
by Artsdoctor
Wed Feb 25, 2015 6:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Individual TIPS
Replies: 13
Views: 761

Re: why do some people like Fidelity?

Fidelity's fixed income department offers more than Vanguard's. You can't buy initial offerings of munis at Vanguard, and at Fidelity you can. Fidelity's Donor Advised Fund is easier to use than Vanguard's. You can make much smaller contributions at Fidelity and the fees are similar. There may be mo...
by Artsdoctor
Tue Feb 24, 2015 7:55 pm
 
Forum: Investing - Theory, News & General
Topic: why do some people like Fidelity?
Replies: 67
Views: 6998

Re: Vanguard brokerage tax forms changed to late Feb. questi

Amended 1099s have been sent out before so even if you get your 1099 from your brokerage firm by late January, I would always wait until late February to use it. And even that doesn't guarantee you won't receive an amended tax form, but it decreases that risk. If you're going to use a brokerage acco...
by Artsdoctor
Tue Feb 24, 2015 7:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard brokerage tax forms changed to late Feb. question
Replies: 93
Views: 7580

Re: Is this wash sale?

Fred, A wash sale is designed to prevent people from declaring a capital LOSS only to buy the same investment back within 30 days. When you declare a loss in your taxable account, the federal government will subsidize that loss in the form of decreasing your final tax bill. If you were to sell an in...
by Artsdoctor
Tue Feb 24, 2015 7:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this wash sale?
Replies: 4
Views: 300

Re: Vanguard brokerage tax forms changed to late Feb. questi

Brokerage tax forms are always later than mutual fund tax forms. Vanguard is no different than many of the other brokerage firms. And even if you got your tax forms by the end of January, you'd be wise to hold out until the end of February at least because I've had amended 1099s in the past. In fact...
by Artsdoctor
Tue Feb 24, 2015 3:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard brokerage tax forms changed to late Feb. question
Replies: 93
Views: 7580

Re: Tax Loss Harvesting

^ There is really no such thing as a "sure tax strategy." In case you haven't noticed, there is movement afoot to have heirs inherit the original basis of the asset at death! I don't think it'll come to pass, but I wouldn't assume anything as a sure thing . . . Tax-Loss Harvesting is extre...
by Artsdoctor
Sun Feb 22, 2015 1:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting
Replies: 13
Views: 829

Re: 401k or Taxable account in CA? + harvest gains

You're very smart to know the fees. Few people take the time to look at that. And yes, it's ridiculous that an index fund would have an ER of 1% but it's not that unusual for 401k's. You generally learn to say, "Never say never," but I'm going to go out on a limb and say that you would NEV...
by Artsdoctor
Sun Feb 22, 2015 10:39 am
 
Forum: Investing - Help with Personal Investments
Topic: 401k or Taxable account in CA? + harvest gains
Replies: 6
Views: 459

Re: why do some people like Fidelity?

The advantage of Fidelity's DAF is that minimum contributions are relatively low and subsequent requests for charitable contributions can be as low as $50.
by Artsdoctor
Sat Feb 21, 2015 7:01 pm
 
Forum: Investing - Theory, News & General
Topic: why do some people like Fidelity?
Replies: 67
Views: 6998

Re: Best Sequence for Withdrawing Funds in Retirement

Check Christine Benz's most recent column at morningstar.com about this. It's one of her best columns and she covers a lot of ground that you'd find useful.
by Artsdoctor
Sat Feb 21, 2015 6:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best Sequence for Withdrawing Funds in Retirement
Replies: 7
Views: 650

Re: 401k or Taxable account in CA? + harvest gains

The longer you stay at your job, the most expensive that 401k becomes. If you view this job as a stepping stone and only expect to be there a few years, you can hold your nose and contribute the maximum to your plan. The match will certainly help defray those costs although money is money. If you vi...
by Artsdoctor
Sat Feb 21, 2015 6:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k or Taxable account in CA? + harvest gains
Replies: 6
Views: 459

Re: why do some people like Fidelity?

Agree with Victoria above. Would also add that Fidelity offers new issue municipals at auction so you can avoid the secondary market altogether. Finally, the Fidelity Donor Advised Fund is more accessible than Vanguard's.
by Artsdoctor
Sat Feb 21, 2015 5:54 pm
 
Forum: Investing - Theory, News & General
Topic: why do some people like Fidelity?
Replies: 67
Views: 6998

Re: Effect of Foreign Tax on Retirement Accounts

I agree with livesoft. It's nice to have the foreign tax credit on your 1040, but it's actually quite small from a percentage viewpoint. Livesoft's numbers are spot on. The other thing to remember is that most international funds have a reasonable percentage of non-qualified distributions. Add that ...
by Artsdoctor
Sat Feb 21, 2015 9:47 am
 
Forum: Investing - Theory, News & General
Topic: Effect of Foreign Tax on Retirement Accounts
Replies: 5
Views: 357

Re: 30 year tips auction: TBA 2/12 0.75% yield?

^ Very reasonable. But you're setting yourself up to "have" to sell something, potentially creating yet another taxable event. This is one of those situations that I can appreciate another person's viewpoint but it doesn't fit my needs to hold individual TIPS in my taxable account. One of ...
by Artsdoctor
Fri Feb 20, 2015 8:25 pm
 
Forum: Investing - Theory, News & General
Topic: 30 year tips auction: TBA 2/12 0.75% yield?
Replies: 39
Views: 3445

Re: 30 year tips auction: TBA 2/12 0.75% yield?

^ For now. I've given up trying to predict the CPI for the foreseeable future. For me, I pick every transaction in my taxable account carefully because I don't want to be holding an investment in the future which creates a potentially significant tax liability. I personally don't want to be in a pos...
by Artsdoctor
Fri Feb 20, 2015 12:06 pm
 
Forum: Investing - Theory, News & General
Topic: 30 year tips auction: TBA 2/12 0.75% yield?
Replies: 39
Views: 3445

Re: 30 year tips auction: TBA 2/12 0.75% yield?

I'll always have equities and nominals because I just don't have the space in my tax-advantaged accounts to build a gargantuan LMP, and this is something I view as a blessing and a curse. Check your math. Tax efficiency is the product of tax rate times the annual return. With 30 year TIPS returning...
by Artsdoctor
Fri Feb 20, 2015 11:18 am
 
Forum: Investing - Theory, News & General
Topic: 30 year tips auction: TBA 2/12 0.75% yield?
Replies: 39
Views: 3445

Re: 30 year tips auction: TBA 2/12 0.75% yield?

I've made my peace with low real returns. And I've also realized that trying to predict where rates are headed is futile. I thought TIPS were cheap in 2008 and expensive in 2011 when I started building my LMP. I was right about 2008 but wrong about 2011--I'd still be waiting if I held out for 2.4% r...
by Artsdoctor
Thu Feb 19, 2015 10:21 am
 
Forum: Investing - Theory, News & General
Topic: 30 year tips auction: TBA 2/12 0.75% yield?
Replies: 39
Views: 3445

Re: A case for long term government bonds

Sure, if we could all know that we're approaching a prolonged deflationary environment, buying 30-year nominals would be the way to go. And we could indeed have some degree of deflation--the CPI-U certainly has been decreasing and not increasing. But can anyone really say how prolonged this will be?...
by Artsdoctor
Thu Feb 19, 2015 10:07 am
 
Forum: Investing - Theory, News & General
Topic: A case for long term government bonds
Replies: 40
Views: 3241

Re: Do you include an inflation estimate in your portfolio?

Totally agree with Nisi. Planning in nominal returns is distracting. Numbers can look huge but they're relatively meaningless. I also use estimated real returns because those numbers mean something to me and I can relate to them. Neither is perfect, but figuring calculations in terms of real returns...
by Artsdoctor
Thu Feb 19, 2015 9:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Do you include an inflation estimate in your portfolio?
Replies: 17
Views: 1410

Re: Cap Gains & Divs killed me this year

PS: This is one of those "turning lemons into lemonade" opportunities. No one is born with the ability to manage money efficiently. It is learned. Everyone here has made mistakes and the best one can hope for is that mistakes are made early in life and are not too costly. There are many th...
by Artsdoctor
Thu Feb 19, 2015 9:52 am
 
Forum: Investing - Theory, News & General
Topic: Cap Gains & Divs killed me this year
Replies: 65
Views: 7218

Re: Tax Exempt Investing

My taxable account is 100%. I have no non taxable accounts. If I invest all funds in tax exempt funds do I pay no federal tax accept for social security and pensions which I have or does IRS have something else to catch me on? The only other "stealth tax" I know of is that muni income is ...
by Artsdoctor
Tue Feb 17, 2015 2:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Exempt Investing
Replies: 11
Views: 1166

Re: Annual costs for a $1M+ house

Of course the mortgage will vary a lot so you'd have to do the math at the time of purchase--and the terms you'd want. Generally speaking, you can think about maintenance cost being in the 2% range (2% of the value of the house). That would include real estate taxes, upkeep, utilities, and--to some...
by Artsdoctor
Thu Feb 05, 2015 7:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Annual costs for a $1M+ house
Replies: 17
Views: 3153

Re: Annual costs for a $1M+ house

Of course the mortgage will vary a lot so you'd have to do the math at the time of purchase--and the terms you'd want. Generally speaking, you can think about maintenance cost being in the 2% range (2% of the value of the house). That would include real estate taxes, upkeep, utilities, and--to some ...
by Artsdoctor
Thu Feb 05, 2015 2:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Annual costs for a $1M+ house
Replies: 17
Views: 3153

Re: Joining the free dinner circuit? Promises, promises.

Shouldn't meal time be enjoyable? I also tried to justify going to pharmaceutical dinners years ago and then came to my senses; I stopped that over a decade ago and now equate food with pleasure. I've noticed that pharma reps arrive bringing food at my doctors' offices lately. Only if your doctors ...
by Artsdoctor
Thu Feb 05, 2015 10:45 am
 
Forum: Personal Consumer Issues
Topic: Joining the free dinner circuit? Promises, promises.
Replies: 100
Views: 8288
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