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Re: Question about stocks and taxes

The exception to a merger/buyout not being a taxable event is if it's a tax "inversion" that's been in the news lately. MDT for example. Those are taxable events.
by MN Finance
Wed Oct 15, 2014 2:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question about stocks and taxes
Replies: 4
Views: 535

Re: Dry Powder, When to Start Value Averaging In?

Nearly 55, most likely will be retiring in less than a year. My question, looks like I will have 50 to maybe 100K after tax money that I'd like to put somewhere. Emergency fund is covered, won't need the money for a year or two, possibly more. Before this minor correction I was hanging on for anoth...
by MN Finance
Tue Oct 14, 2014 1:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Dry Powder, When to Start Value Averaging In?
Replies: 23
Views: 2204

Re: Question re: RMD

Clearly you can historically "prove" that the market is better in December than January because the market is higher more than 50% of the days, months, and years. So if you're looking at long term, big picture, out should turn out slightly better to take every December. Now, how much of a ...
by MN Finance
Tue Oct 14, 2014 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question re: RMD
Replies: 19
Views: 1220

Re: Tax shielding questions

Get married, have kids, get a big mortgage: 1) you'll pay next to nothing in tax on 100k, 2) 100k will barely pay the bills. Appreciate where you are.
by MN Finance
Sat Oct 11, 2014 6:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax shielding questions
Replies: 11
Views: 909

Re: Calculating RMDs

The RMD is based on the balances to start the year and the ages attained by the end of the year. In most cases the uniform table is used. If the spouse is more than 10 years younger then the joint table is used which makes the RMD very slightly less to better protect the interests of the younger spo...
by MN Finance
Sat Oct 11, 2014 6:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Calculating RMDs
Replies: 14
Views: 1453

Re: Dividends from Index Funds

My assumption is that you're thinking one question, but actually asking another. You're asking about "yield" but that's not what you mean. Yield is a figure you look up online. You know what that is already. What are you asking?
by MN Finance
Fri Oct 10, 2014 8:22 pm
 
Forum: Investing - Theory, News & General
Topic: Dividends from Index Funds
Replies: 5
Views: 1068

Re: Wells Fargo Advisor Sales Load/Fee Question

Brokers charge commissions. Online brokers charge less. Best buy sells tvs, Amazon sells them cheaper online. Not sure what the confusion is.
by MN Finance
Fri Oct 10, 2014 6:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Wells Fargo Advisor Sales Load/Fee Question
Replies: 6
Views: 441

Re: Small Cap Value for Schwab accounts

Spiders are transaction free, so SLYV
by MN Finance
Thu Oct 09, 2014 7:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Small Cap Value for Schwab accounts
Replies: 7
Views: 398

Re: Tax question charity golf

The deduction would be the amount above the value of the product/service you received in exchange. Typically events like this tell you the retail value of the round/event and then a receipt. If not I'd just estimate it and deduct it.
by MN Finance
Mon Oct 06, 2014 9:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax question charity golf
Replies: 5
Views: 575

Re: A "somewhat involved" RMD question

Correct. Your 401 is all set. Your IRA is not satisfied. You can choose to push it to next year plus the total 2015 RMD for both the old 401 and original IRA.
by MN Finance
Thu Oct 02, 2014 10:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: A "somewhat involved" RMD question
Replies: 10
Views: 801

Re: A "somewhat involved" RMD question

Shawcroft - I believe you can postpone the whole issue till 2015, which is not that far away. But sorry, my eyes glazed over the "involved" parts so do not rely on me. Yes, you can delay the IRA RMD to next year, which may make sense in this case if the NAU distribution was fairly large, ...
by MN Finance
Thu Oct 02, 2014 7:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: A "somewhat involved" RMD question
Replies: 10
Views: 801

Re: A "somewhat involved" RMD question

You have RMDs due based on what the accounts looked like at the beginning of the year regardless of what you do with them later in the year. If you had a 401k of $10k on 1/1/14, then you have to take 1/26th (whatever your divisor is) from the 401k. You can't roll the 401k to an IRA on 1/2/14 and the...
by MN Finance
Thu Oct 02, 2014 3:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: A "somewhat involved" RMD question
Replies: 10
Views: 801

Re: Lower risk & return if equity allocation is below 30-40%

Since you're not reading my post, I won't continue to restate the same point. If you happen to be the only investor I know to hold the s&p and 5 year treasuries, then looks like you get a free lunch. For the rest of the world, it doesn't exist. Once you take enough term risk you can add anything...
by MN Finance
Wed Oct 01, 2014 9:04 pm
 
Forum: Investing - Theory, News & General
Topic: Lower risk & return if equity allocation is below 30-40%?
Replies: 19
Views: 1144

Re: Lower risk & return if equity allocation is below 30-40%

A graph without source doesn't help. To repeat, a diversified portfolio historically doesn't show any free lunch. It's a very linear, intuitive relationship. When I say diversified I mean something far beyond a 2 fund portfolio which it assuredly what these sourceless charts represent.
by MN Finance
Wed Oct 01, 2014 5:18 pm
 
Forum: Investing - Theory, News & General
Topic: Lower risk & return if equity allocation is below 30-40%?
Replies: 19
Views: 1144

Re: Lower risk & return if equity allocation is below 30-40%

In theory the efficient frontier graph curves inward at low stock allocations below 15 or 20 percent (free lunch), but in practice a diversified portfolio has not historically behaved that way. I don't think I've ever seen a chat exhibit this excerpt for one that just displays the s&p and treasu...
by MN Finance
Wed Oct 01, 2014 1:16 pm
 
Forum: Investing - Theory, News & General
Topic: Lower risk & return if equity allocation is below 30-40%?
Replies: 19
Views: 1144

Re: Worth converting from single member LLC to S-Corp?

Just to clarify, if anyone cares, you don't choose between an LLC and and S Corp. You have an LLC. You then decide how you want the LLC to be taxed. It could be taxed in a few ways: as a partnership or a corporation.. You file an election with the IRS letting them know your choice. You have to file ...
by MN Finance
Tue Sep 30, 2014 8:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Worth converting from single member LLC to S-Corp?
Replies: 12
Views: 1069

Re: Federal gift tax implications question

Sscritic PMd me and referenced sources indicating the retitling was not a gift. I agree that research sources almost equally indicate it both ways. I suspect in this case it probably didn't matter one way or another because as we sit here today it's not a gift tax question anyway.
by MN Finance
Sat Sep 27, 2014 11:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Federal gift tax implications question
Replies: 6
Views: 519

Re: Federal gift tax implications question

The retitling of the account was a gift. That's a totally separate issue than your question "does he still have to pay Federal Gift Taxes..." If gift taxes are due, they're due in the year of the gift. At death, it's no longer a gift tax question. The deceadants share of the account is inc...
by MN Finance
Sat Sep 27, 2014 10:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Federal gift tax implications question
Replies: 6
Views: 519

Re: Can Employer send their Contribution to Traditional IRA?

Why, can and should are all different questions. The answers are who knows, yes, and probably not.
by MN Finance
Sat Sep 27, 2014 10:48 am
 
Forum: Investing - Theory, News & General
Topic: Can Employer send their Contribution to Traditional IRA?
Replies: 11
Views: 843

Re: EJ Gadflies [Edward Jones]

Sorry, not offended. Just pointing out myopic assumption that a 20 something should already understand everything about the world he lives in. I didn't when I got my first job ( but I'm slower than most). It sure doesn't make him dishonest or the equivalent of a gadfly. Let's poll the "respecte...
by MN Finance
Tue Sep 16, 2014 7:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: EJ Gadflies [Edward Jones]
Replies: 64
Views: 6549

Re: EJ Gadflies [Edward Jones]

Some motivated kid shows up and calls a couple times and this is the reaction? Would you have the same reaction if he was selling kirby vacuums, steaks or firewood? I think not. You'd think, good for this young man doing his best to make something of himself and take care of his family. We should al...
by MN Finance
Tue Sep 16, 2014 5:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: EJ Gadflies [Edward Jones]
Replies: 64
Views: 6549

Re: 529 Beneficiary Change Tax Implication Question

I suggest you search some past threads because there have been lots of detailed discussions with knowledgeable posters. Part of the confusion is that most sources, including the one you cited mention 3 different taxes with modest distinction: gift tax, gst tax, and income tax. Obviously you're conce...
by MN Finance
Mon Sep 15, 2014 6:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: 529 Beneficiary Change Tax Implication Question
Replies: 4
Views: 405

Re: VDE [for 5% "casino money"?]

If you're going to gamble, then actually gamble and pick a couple risky stocks. If you're not, then this is just mild entertainment who's impact will barely be noticeable one way or the other a decade from now. Fine, but barely entertaining.
by MN Finance
Sat Sep 13, 2014 1:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: VDE [for 5% "casino money"?]
Replies: 11
Views: 963

Re: Gifting planning for upper 60s widowed.

I don't understand why estate taxes are mentioned at all since it's irrelevant to the proposed question. Second, I don't understand how anyone can opine that this is either a good or bad idea without providing some data/calculations. Gut feeling is no way make these decisions. As I've said, it's not...
by MN Finance
Sat Sep 13, 2014 1:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gifting planning for upper 60s widowed.
Replies: 30
Views: 2308

Re: Ethics of Multi-Generational Tax Optimization

What kind of numbers are we talking about? That age filling single with RMDs and any sizeable portfolio gets up in tax brackets pretty quick. First, you need to run tax projections to really see what the marginal rate is. Second, you might pay tax at a higher rate today for him than in, say 5 years,...
by MN Finance
Fri Sep 12, 2014 9:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Ethics of Multi-Generational Tax Optimization
Replies: 23
Views: 1845

Re: Gifting planning for upper 60s widowed.

It's obviously a simple question. Can mom cover all of her future expected expenses in all market conditions with a portfolio size = today - future gifts. I don't think we can answer it given the data, but I'm sure you could (btw, of course how the portfolio is invested indeed is a major factor in h...
by MN Finance
Fri Sep 12, 2014 9:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gifting planning for upper 60s widowed.
Replies: 30
Views: 2308

Re: Feeling smug until 10 year ROR from Vanguard

No, I get the return data obviously. I wasn't understanding the sentiment. Is that good? Bad? 10 years spanning one of the worst crashes in history and one of the steepest recoveries ever. Who knows if the OP thinks 5% per annum is good/bad.
by MN Finance
Fri Sep 12, 2014 9:23 pm
 
Forum: Investing - Theory, News & General
Topic: Feeling smug until 10 year ROR from Vanguard
Replies: 81
Views: 7761

Re: Three shares of stock, what to do with them?

You own them in certificate form, not electronic form. Computer share also keeps a record and sends you a statement. You can only transact business with the stocks by physically presenting the certs. If you lose them, they can be replaced (probably for 50/ea). Computer share is paid by the company t...
by MN Finance
Fri Sep 12, 2014 8:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Three shares of stock, what to do with them?
Replies: 10
Views: 753

Re: The dangerous practice of rebalancing...

At the very best this could be a strategy for someone in/near retirement and fully funded. For most this is garbage. The problem is that it ignores the very risk it purports to protect against. If I'm 70 and live on social security and pension and need just 10k/year from my million dollar portfolio,...
by MN Finance
Fri Sep 12, 2014 6:59 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 191
Views: 14392

Re: Opinions on Social Index Fund (VFTSX)?

I agree with the opinions expressed that *some* SRI investors may eventually find it more fruitful to invest in board based funds without screens and then direct the potential out performance of the index fund and guaranteed ER savings and donate that money to local causes we support. That said, tha...
by MN Finance
Sat Sep 06, 2014 11:56 pm
 
Forum: Investing - Theory, News & General
Topic: Opinions on Social Index Fund (VFTSX)?
Replies: 19
Views: 1597

Re: Question: How to Design an Aggressive 2 Year Portfolio?

This is a poorly set up question. It's financial advice in a box, a small blind box. Finance is all about solving multiple problems with multiple variables by deploying a strategy with the best odds of success. With the information provided, it's like asking my doctor how I can add 8lbs of muscle ma...
by MN Finance
Sat Sep 06, 2014 8:12 pm
 
Forum: Investing - Theory, News & General
Topic: Question: How to Design an Aggressive 2 Year Portfolio?
Replies: 30
Views: 1267

Re: IRA Complications

you probably can't "transfer" (move within the same plan you're from one company to another) the SEP IRA to vanguard because the employer controls which companies are used and they probably don't want multiple companies. That said, there are no "reporting requirements" to worry a...
by MN Finance
Fri Sep 05, 2014 9:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Complications
Replies: 2
Views: 307

Re: "Funding" a Future Tax Liability from a Roth Conversion

It's fine, but if you actually think about it, you don't want to save the tax liability in safe assets. You want it to be invested in the asset you're going to convert because they move together. That said I really don't think this matters one way or another.
by MN Finance
Fri Sep 05, 2014 8:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: "Funding" a Future Tax Liability from a Roth Conversion
Replies: 5
Views: 282

Re: cell phone for kids

To do what? My 9 year old just bought his own ipod touch, which is an iPhone without cell/text capabilities. This seems fairly standard among his friends. A dumb phone seems dumb, since he has no need for calls/texts and has ongoing costs. The touch is used for various apps, games, and most enjoyabl...
by MN Finance
Fri Sep 05, 2014 5:17 pm
 
Forum: Personal Consumer Issues
Topic: cell phone for kids
Replies: 25
Views: 1281

Re: DIY Index Fund

I fail to understand this question and the perceived benefits. It's clearly impossible to effectively replicate any broad based index on your own without investing millions of dollars. Just take 60 seconds to determine how many shares of each stock you'd need to purchase to replicate the s&p and...
by MN Finance
Fri Sep 05, 2014 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: DIY Index Fund
Replies: 25
Views: 2456

Re: On the fence with VDC

You mean, you want to buy it to decrease your diversification by purposely over weighting a specific basket of stocks you already own?

You can't sell stocks and buy an etf to avoid taxes.
by MN Finance
Mon Aug 25, 2014 11:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: On the fence with VDC
Replies: 4
Views: 394

Re: I need "Ultra High Net Worth" investing advice please

All the investment advice so far is fine, but completely irrelevant at this point. Imo it's penny wise to simply discount a good professional team. The value of a good advisory team is not found in the simplest task on the list (investing). It's found in the personal discussion about how to match a ...
by MN Finance
Sun Aug 24, 2014 9:07 am
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 225
Views: 19386

Re: 87 Year Old Grandmother Has $600,000 In the Bank

I would not get involved in this. You have no upside. What purpose do you think the 600k serves? An 87 year old is sitting on cash and you are wondering what she can do to better invest the money for her family? The answer is, nothing. Should you recommend something else, you will almost assuredly b...
by MN Finance
Sun Aug 24, 2014 7:56 am
 
Forum: Investing - Help with Personal Investments
Topic: 87 Year Old Grandmother Has $600,000 In the Bank
Replies: 42
Views: 5657

Re: Financial Advisor Compensation

If you really want an answer you'll need to say what firm it is. I assume you actually don't really care since it doesn't impact anything. If you're holding etfs they don't get paid anything. There was some reference to etf revenue sharing which is a different issue (and irrelevant to you). Ed Jones...
by MN Finance
Thu Aug 21, 2014 10:49 pm
 
Forum: Investing - Theory, News & General
Topic: Financial Advisor Compensation
Replies: 36
Views: 2995

Re: Tax deferred annuity [Withdrawal strategy questions]

Trying to infer the details... you were born in 30, you have a non qualified fixed annuity with TIAA, you will be forced to settle the annuity at age 90, you don't need the money, the money was invested some time after 1987. Is that right? If so, you probably just want to take a fixed period payout,...
by MN Finance
Sun Aug 17, 2014 2:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax deferred annuity [Withdrawal strategy questions]
Replies: 5
Views: 444

Re: Avoiding the 3.8% medicare tax - when does it make sense

At a minimum split it between now and January to cover 2 years. You also need to make sure you run the numbers in your tax software. Taxes very rarely have a singular impact and the marginal tax may not simply be capital gains rate plus Medicare tax rate.
by MN Finance
Sat Aug 16, 2014 3:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: [when to sell funds if capital gains trigger Medicare tax?]
Replies: 12
Views: 834

Re: Convince me I can make a dumb (car-related) purchase

When we were about your age we had an S3 and a 328i. As we proceeded to have 4 kids over the following 10 years the small sedans turned into larger sedans and wagons, then SUVs and minivans. I don't think you need to buy a car to accommodate future needs, but realize that if you spend 50k expecting ...
by MN Finance
Thu Aug 14, 2014 3:39 pm
 
Forum: Personal Consumer Issues
Topic: Convince me I can make a dumb (car-related) purchase
Replies: 56
Views: 4521

Re: How to Minimize Taxes: Family Selling Farm (Estate Plann

Look, these are all really good ideas for taxes but the issue is whether or not this 70 year old couple wants to be in the farm business for the next 20 years. The assumption is that they do not. If that's true, there's very little that can be done, if anything, to reduce the tax burden (my first re...
by MN Finance
Tue Aug 12, 2014 9:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to Minimize Taxes: Family Selling Farm (Estate Planning)
Replies: 21
Views: 1683

Re: How to Minimize Taxes: Family Selling Farm (Estate Plann

- Possible installment sale to spread the gain over multiple years and potentially minimize gain subject to 3.8% Net Investment Income Tax and 20% long-term capital gain rate. - Possible Section 121 exclusion of gain on sale of residence. "Possible" and "potentially" because we ...
by MN Finance
Mon Aug 11, 2014 10:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to Minimize Taxes: Family Selling Farm (Estate Planning)
Replies: 21
Views: 1683

Re: How to Minimize Taxes: Family Selling Farm (Estate Plann

This is basic stuff for a CPA. The biggest mistake is not using a CPA that understands farms. Beyond that any advice here is speculation. If the property is sold the taxes are what they are. Im not sure if the tax situation changes based on how the farm was being run, but at this point im sure there...
by MN Finance
Sun Aug 10, 2014 10:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to Minimize Taxes: Family Selling Farm (Estate Planning)
Replies: 21
Views: 1683

Re: ESPP vs. NUA for Company stock purchases

NUA is a silver lining to a position you shouldn't find yourself planning to be in - decades long exposure to a concentrated company stock position. If you aim to keep your exposure to small percentage of your portfolio, it's not going to make any difference since you'll be selling the stock along t...
by MN Finance
Sat Aug 09, 2014 6:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: ESPP vs. NUA for Company stock purchases
Replies: 5
Views: 307

Re: Risk and Return of Tilted and Market Balanced Funds

And I would add that if you are going to subtract an advisor fee you should be adding back value added provided, unless paying SOLELY for access,and then there are some very low cost advisors that sell access basically Larry Can you restate this? Not sure I follow your point about adding back value...
by MN Finance
Tue Aug 05, 2014 11:17 pm
 
Forum: Investing - Theory, News & General
Topic: Risk and Return of Tilted and Market Balanced Funds
Replies: 19
Views: 2608

Re: Should I become a CFP?

"Becoming a CFP" is a window dressing credential to an otherwise established financial services career. It initself is not the starting point. There are some others on the board who have done this career change or wondered about it out loud in past posts if you search.
by MN Finance
Tue Jul 29, 2014 1:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I become a CFP?
Replies: 27
Views: 3649

Re: Minimizing RMDS

Yes, both for rmds and annual dividends/interest holding stocks in the trust account would be preferred, although small value isn't the most tax efficient stock category.
by MN Finance
Mon Jul 28, 2014 1:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Minimizing RMDS
Replies: 1
Views: 373
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