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Re: windfall legal settlement - tax treatment?

Kenner is correct. Simply calling something "pain and suffering" is meaningless to the IRS and does not bind it. The IRS will look to the nature of the claims and the facts and circumstances of the jury (or judge's) award. Your attorney MIGHT know how to handle it, but lawyers who handle l...
by Chicago60
Sat Jul 05, 2014 11:34 am
 
Forum: Personal Finance (Not Investing)
Topic: windfall legal settlement - tax treatment?
Replies: 13
Views: 1742

Re: Class-action lawsuits

A quick search revealed this MIGHT be your case (from Reuters in 2012): "Wells Fargo Bank NA was accused in a lawsuit of charging inflated premiums when it procures “force- placed” property insurance for homeowners whose coverage has lapsed. The premiums are inflated to cover kickbacks in the f...
by Chicago60
Thu Jul 03, 2014 5:36 pm
 
Forum: Personal Consumer Issues
Topic: Class-action lawsuits
Replies: 16
Views: 1236

Re: What would "you" do?? [in this case]

I would read sscritic's comments, and follow them. Completely. His writing is almost always concise and clear. (I might quibble with his comment that the last post was "illegal." It might violate this Blog's rules, but I see nothing illegal about the post.
by Chicago60
Wed Jun 11, 2014 11:21 am
 
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 3899

Re: Help with my Northwestern Mutual Modified Endowment

Thanks for the responses. My initial purchase was for three reasons, in order of importance at the time: (1) shelter 100K from possible creditors (never became an issue), (2) provide a safe haven for the 100K and provide bond like returns for future years, and (3) ancillary life insurance benefits. ...
by Chicago60
Thu May 22, 2014 1:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with my Northwestern Mutual Modified Endowment
Replies: 18
Views: 701

Re: Help with my Northwestern Mutual Modified Endowment

Term insurance covers those issues.
by Chicago60
Wed May 21, 2014 11:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with my Northwestern Mutual Modified Endowment
Replies: 18
Views: 701

Re: Help with my Northwestern Mutual Modified Endowment

No interest in a 1035 Exchange, but thanks. I either keep the policy in effect and have the death benefit for my heirs (doubt I will do that), or take the cash (seems to make sense in December 2019 or January 2020).
by Chicago60
Wed May 21, 2014 10:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with my Northwestern Mutual Modified Endowment
Replies: 18
Views: 701

Re: Help with my Northwestern Mutual Modified Endowment

My math tells me 5.26% as well. Not as high as I received in earlier years, but a high return in this rate environment. Cash value on our life policies (less about 40% for tax) is, in my view and consideration, part of the fixed income of our asset allocation, with the balance in CDs and I-Bonds. I ...
by Chicago60
Wed May 21, 2014 9:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with my Northwestern Mutual Modified Endowment
Replies: 18
Views: 701

Help with my Northwestern Mutual Modified Endowment

In January 1997, I purchased for $100,000 a Modified Endowment Contract with NML. (I already know the general views of members of the blog as to the wisdom, or lack thereof, of purchasing whole life, let alone a MEC. The purchase was made so no need to dwell on the merits, or lack thereof, of that d...
by Chicago60
Wed May 21, 2014 5:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with my Northwestern Mutual Modified Endowment
Replies: 18
Views: 701

Re: FINRA Investor Complaint

You likely will have a difficult time finding an experienced securities litigator willing to take the case based simply on the amount at issue. No matter how simple you think the claim might be, they take considerable time and effort, and might require an expert witness. I would not pay a lawyer hou...
by Chicago60
Wed Jan 22, 2014 5:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: FINRA Investor Complaint
Replies: 7
Views: 695

Re: Educational as the best investment?

I would need more information. I agree with most of the comments here: I place an extremely high value, monetarily and otherwise, on getting a good education from a top school. For me, it is a no brainer. But....an advanced degree? Maybe, but maybe not....Tell me the specific circumstances. For exam...
by Chicago60
Tue Jan 21, 2014 7:55 pm
 
Forum: Investing - Theory, News & General
Topic: Educational as the best investment?
Replies: 30
Views: 1555

Re: college related advice for 11th grader

One other point worth considering: no matter how convinced he is now that STEM is what will interest him in college, I have seen others decide to change their majors and interests (as a result of burn-out or too competitive in extremely selective Universities) so consider as you narrow your choices ...
by Chicago60
Tue Jan 14, 2014 3:39 pm
 
Forum: Personal Consumer Issues
Topic: college related advice for 11th grader
Replies: 106
Views: 6846

Re: college related advice for 11th grader

Read and spend a great deal of time with collegeconfidential.com to get a sense of your child's likely acceptance and interest in the schools. Our three (2 graduated and one a college junior) attended selective schools. Their desires to visit schools varied from first visits in the fall junior year ...
by Chicago60
Mon Jan 13, 2014 4:15 pm
 
Forum: Personal Consumer Issues
Topic: college related advice for 11th grader
Replies: 106
Views: 6846

Re: Punitive damages - what car insurance won't cover

Punitive damages are generally not covered by an insurance policy as to do so would be against public policy. The acts described above likely would not lead to any claim or recovery of punitive damages.
by Chicago60
Wed Dec 11, 2013 10:21 pm
 
Forum: Personal Consumer Issues
Topic: Punitive damages - what car insurance won't cover
Replies: 7
Views: 1432

Re: No Retirement Plan at Work: Income limits for Deduct IRA

Thanks, DSInvestor. I think I will make the 6500 contribution and take the deduction and leave my spouse's as is.
by Chicago60
Sat Dec 07, 2013 11:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: No Retirement Plan at Work: Income limits for Deduct IRA?
Replies: 4
Views: 340

Re: No Retirement Plan at Work: Income limits for Deduct IRA

Thanks, sscritic. I read the IRS website the same way and I guess I feel the Wiki is misleading. I will make a deductible IRA for myself this year for the first time in years. Question: my non-working spouse made an IRA contribution earlier this year and promptly converted to backdoor Roth. Can she ...
by Chicago60
Sat Dec 07, 2013 6:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: No Retirement Plan at Work: Income limits for Deduct IRA?
Replies: 4
Views: 340

No Retirement Plan at Work: Income limits for Deduct IRA?

For the first time in years, I have no retirement plan at work. In prior years, I contributed to an IRA and backdoored ROTH for spouse and for me. My question is what are the income limits, if any, for a deductible IRA if I have no retirement plan at work, and spouse does not work? The Wiki seems to...
by Chicago60
Sat Dec 07, 2013 5:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: No Retirement Plan at Work: Income limits for Deduct IRA?
Replies: 4
Views: 340

Re: Help me be fair to my Real Estate Agent

Being "fair" is complying with the terms of the contract, which, as you described, you have fulfilled. Allowing the realtor to continue to assist you might mean that the realtor is owed additional amounts, either under the terms of the original contract, or by quantum meruit. If you want t...
by Chicago60
Fri Dec 06, 2013 2:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help me be fair to my Real Estate Agent
Replies: 15
Views: 968

Re: New PenFed CD rates!

Kevin: Thanks for the link to your blog. A nice read.
by Chicago60
Wed Dec 04, 2013 12:17 pm
 
Forum: Investing - Theory, News & General
Topic: New PenFed CD rates!
Replies: 313
Views: 35535

Re: Lawsuit Proceeds, Now What......

SNA: I am curious, should you decide to answer, what did the accountant tell you as to the taxability, or not, of the settlement?
by Chicago60
Wed Dec 04, 2013 12:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Lawsuit Proceeds, Now What......
Replies: 45
Views: 4378

Re: Fort Myers Beach, Marco Island, or ?

5 second search just now for the week of 12/22-12/29 found a couple of (expensive) options still available on Marco (no longer the Marriott or Hilton) and I assume similar depleted (and expensive) inventory at other locations mentioned.
by Chicago60
Tue Dec 03, 2013 10:55 am
 
Forum: Personal Consumer Issues
Topic: Fort Myers Beach, Marco Island, or ?
Replies: 22
Views: 1535

Re: Calling all Lawyers, need advice on potential lawsuit

You will have a difficult time finding a competent lawyer who handles securities arbitration cases in light of the size of your claimed losses. You may want to contact PIABA.org and see if someone locally will handle your case (likely on a contingency basis). If you are confident in your abilities, ...
by Chicago60
Mon Dec 02, 2013 11:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Calling all Lawyers, need advice on potential lawsuit
Replies: 7
Views: 1777

Re: Fort Myers Beach, Marco Island, or ?

I second FSRPH's comments: We have been to Marco in late December and prefer it over the other locations mentioned, though the nightlife is pretty boring. I also prefer the Marriott and its beach over any other hotels on Marco, but the rates will be pricey in late December, if there is availability.
by Chicago60
Mon Dec 02, 2013 6:34 pm
 
Forum: Personal Consumer Issues
Topic: Fort Myers Beach, Marco Island, or ?
Replies: 22
Views: 1535

Re: First early withdrawals from Ally [and Barclays] CDs

Kevin, I am curious (if you are willing to disclose, of course): Did you purchase the Ally CD before or after Ally changed (or in Ally's view clarified) its policy concerning whether Ally's consent was needed to break a CD before maturity?
by Chicago60
Mon Dec 02, 2013 6:31 pm
 
Forum: Investing - Theory, News & General
Topic: First early withdrawals from Ally [and Barclays] CDs
Replies: 14
Views: 1207

Re: New PenFed CD rates!

I became a new Pen Fed Member three weeks ago and sent a check for over 25K, had it deposited in the new savings account, printed the CD application online, filled it out with my spouse and mailed it to PenFed and purchased a 3 year 2% CD. Today I cancelled the 3 year CD and transferred the funds to...
by Chicago60
Sun Dec 01, 2013 9:24 pm
 
Forum: Investing - Theory, News & General
Topic: New PenFed CD rates!
Replies: 313
Views: 35535

Re: Social Security Survivor Benefits Question

Thanks for the helpful responses.
by Chicago60
Fri Nov 29, 2013 4:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security Survivor Benefits Question
Replies: 4
Views: 369

Social Security Survivor Benefits Question

I did some quick searching this morning on ssa.gov and could not find the answer to this question and thought I would post here in light of numerous superb experts on social security questions. My 92 year old father passed earlier this month and had been receiving social security. My 83 year old mot...
by Chicago60
Fri Nov 29, 2013 2:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security Survivor Benefits Question
Replies: 4
Views: 369

Re: Share Certificate 3 year PenFed 2.02% apy

I became a member last week and promptly opened a savings account online for $5. I then printed the online application form for a 3 year CD and mailed a check for in excess of 25K to PenFed yesterday. Seemed pretty easy to me.
by Chicago60
Sat Nov 16, 2013 10:12 am
 
Forum: Investing - Theory, News & General
Topic: Share Certificate 3 year PenFed 2.02% apy
Replies: 61
Views: 6590

Re: Washington Mutual class action suit- should I file a cla

Penglish: Generally settlement checks are not sent to class members until after a settlement is completed (and then reviewed and approved by the court), and all appeals (if any) have been exhausted. It appears from the class action website, that all appeals were exhausted earlier this year and initi...
by Chicago60
Sat Nov 16, 2013 10:09 am
 
Forum: Personal Finance (Not Investing)
Topic: Washington Mutual class action suit- should I file a claim?
Replies: 58
Views: 15166

Is Vanguard International a proper IRA Investment?

I am looking to expand my international equity exposure and am considering using cash in my IRA I now have from dividends to invest in VXUS. I think (correct me if I am wrong) that the VXUS in my taxable account takes some of the dividends and withholds international taxes so that I can deduct those...
by Chicago60
Wed Nov 13, 2013 3:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is Vanguard International a proper IRA Investment?
Replies: 4
Views: 390

Re: Why are there so few attorneys on this site?

Numbers oriented attorney here. I have no idea if the premise to your question is accurate, but assuming it is, I suspect that it might be because this site attracts a more conservative long term investor which might fit in with the stereotypical doctor, engineer, or CPA while lawyers may not be qui...
by Chicago60
Wed Oct 16, 2013 5:06 pm
 
Forum: Personal Consumer Issues
Topic: Why are there so few attorneys on this site?
Replies: 48
Views: 2415

Re: Help with My Whole Life, Modified Endowment Insurance Po

Yes, the "return" does seem pretty decent, and was particularly higher in the initial years.
by Chicago60
Wed Oct 16, 2013 10:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with My Whole Life, Modified Endowment Insurance Policy
Replies: 5
Views: 617

Re: Lawsuit Proceeds, Now What......

John, I very much doubt that the wording of your settlement agreement impacted the IRS position one way or another. The IRS will look to the substance of the actual claims and damages recovered and determine taxability, or not, based on IRS regulations. Substance over form.
by Chicago60
Wed Oct 16, 2013 10:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Lawsuit Proceeds, Now What......
Replies: 45
Views: 4378

Re: Lawsuit Proceeds, Now What......

Sorry for your circumstances, but I am happy you received some compensation for your losses and damages. It is nice that the language in the settlement may prove favorable for you, but I do not think that is the test before the IRS and outcome determinative as to the taxability of your recovery. The...
by Chicago60
Tue Oct 15, 2013 1:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Lawsuit Proceeds, Now What......
Replies: 45
Views: 4378

Re: Lawsuit Proceeds, Now What......

Harry is right. If you did not obtain advice at the time of the settlement with respect to the taxability (or not) of the settlement proceeds, you should consult with a tax attorney or CPA who has experience with the issue.
by Chicago60
Tue Oct 15, 2013 11:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Lawsuit Proceeds, Now What......
Replies: 45
Views: 4378

Re: Is law no longer a viable career option for young people

It depends on what wants to do with a law degree. There is no question that finding a position at BIGLAW is more competitive now than it has ever been. You must graduate from a T14 school and be near the top of your class. These are the highest paid positions and get all the press. Other law positio...
by Chicago60
Sun Oct 13, 2013 9:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Is law no longer a viable career option for young people?
Replies: 36
Views: 4020

Re: Help with My Whole Life, Modified Endowment Insurance Po

I would not "mind" the death benefit, but I have sufficient term insurance for those needs. If I can take partial withdrawals, that would help my tax situation as I can determine the amount of withdrawals each year and try to avoid being pushed into a higher tax bracket even if based on LI...
by Chicago60
Sat Oct 12, 2013 10:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with My Whole Life, Modified Endowment Insurance Policy
Replies: 5
Views: 617

Help with My Whole Life, Modified Endowment Insurance Policy

I have a few questions concerning a Northwestern Mutual Modified Endowment Policy I paid $100K for in 1/1997 (for reasons that do not matter, it made financial and business sense at the time) that has a current cash value of $272K and a death benefit of $618K. Last year's cash value increase was alm...
by Chicago60
Fri Oct 11, 2013 5:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with My Whole Life, Modified Endowment Insurance Policy
Replies: 5
Views: 617

Re: Anything Better Than CDs for Conservative Fixed Income?

I am with Kevin on this one. I have been buying the max (in some years more than the max) in I-Bonds for 13 years. I have probably 25% of my fixed income in I-Bonds, 65% in CDs earning 2%, and 10% in muni bond ETFs.
by Chicago60
Sun Sep 22, 2013 11:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Anything Better Than CDs for Conservative Fixed Income?
Replies: 12
Views: 2364

Re: Hotel Deposit?

I am no expert on the issue, but based on personal experience, I think it has become very common on big chain and travel websites to offer travelers a discounted rate if prepaid at time of booking, and sometimes an even greater discount if paid in full and non cancellable.
by Chicago60
Sat Sep 21, 2013 9:04 am
 
Forum: Personal Consumer Issues
Topic: Hotel Deposit?
Replies: 6
Views: 665

Re: Reporting 529 Withdrawals...UPDATE

I have never had a tax issue or IRS letter on this. Opened 3 UGMA accounts probably late 90's and then years later transferred the assets to 3 different 529 plans for the 3 kids. I do not believe, but I am not certain about this, that the kids (or I) ever or consistently received 1099 for the withdr...
by Chicago60
Wed Sep 11, 2013 10:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Reporting 529 Withdrawals...UPDATE
Replies: 16
Views: 1295

Re: House Problem Liability?

I do not see how your homeowner's insurance covers this because I doubt there was an occurrence within the terms of your policy. It appears that the seller's agent was aware of this undisclosed damage which suggests the seller also knew. I do not practice in California, but California law might requ...
by Chicago60
Thu Aug 22, 2013 10:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: House Problem Liability?
Replies: 11
Views: 1104

Re: CHICAGO - need help to find good prenup lawyer and tax

You should each have your own attorney. One attorney representing you both would have a conflict. I suggest you contact the Chicago Bar association and ask for a referral for a matrimonial lawyer.
by Chicago60
Fri Aug 09, 2013 3:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: CHICAGO - need help to find good prenup lawyer and tax firm
Replies: 3
Views: 562

Re: poll; what % of your bond allocation is in I-bonds?

Spouse and I each purchased the maximum allowed each year starting in 2000 (in fact, bought more than the max in some years and then discovered the limit and informed the IRS--surprisingly the website did not bar you from exceeding the maximum allowed) using airline sponsored credit cards which help...
by Chicago60
Wed Aug 07, 2013 10:46 am
 
Forum: Investing - Theory, News & General
Topic: poll; what % of your bond allocation is in I-bonds?
Replies: 36
Views: 2664

Re: Deferred Fixed Annuity - instead of CD's

Earn (maybe) 2.4%/year for 5 years in a product you do not fully understand vs an FDIC insured 2.0%/year for 5 years CD (http://www.depositaccounts.com/cd/5-year-cd-rates.html)? Choice seems easy to me. Why chase an extra 40 points if you do not fully understand the material terms?
by Chicago60
Mon Aug 05, 2013 2:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Deferred Fixed Annuity - instead of CD's
Replies: 16
Views: 1168

Re: A warning about Schwab, ETFs and cash management

I was looking to sell two individual stocks and immediately use the proceeds to buy Vanguard International ETF. I will now be cautious about the buy date.
by Chicago60
Wed Jul 31, 2013 2:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: A warning about Schwab, ETFs and cash management
Replies: 11
Views: 1509

Re: A warning about Schwab, ETFs and cash management

Is the issue disclosed in Schwab's account agreements or other Terms and Conditions?
by Chicago60
Wed Jul 31, 2013 1:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: A warning about Schwab, ETFs and cash management
Replies: 11
Views: 1509

Re: 529 plan - Is it worthy it?

You receive not only the Illinois state tax benefit in 2013 as noted above, but you also will not have to pay federal tax on gains if the funds are used for qualified education expenses. And since your child likely will not graduate in 2013 if he or she is starting this fall, you can get these benef...
by Chicago60
Wed Jul 24, 2013 5:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: 529 plan - Is it worthy it?
Replies: 2
Views: 685

Re: 529 fund selection

Your approach has to fit your risk tolerance and ability to fund, if at all, from other sources. If it helps your view of my approach, I can tell you that I had other funds from other sources to make up any realistic shortfall. Accordingly, my approach may not fit your circumstances. For me the choi...
by Chicago60
Wed Jul 24, 2013 2:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: 529 fund selection
Replies: 10
Views: 655
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