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Re: Inherited accounts

Subject to tax can have several meanings. If I give you $20k, I file a gift tax return. The first thing I do is subtract my $14k annual exclusion. That leaves $6k "subject to tax." I then compute the tax on $6k. I then apply the lifetime credit amount for the year of the gift. Say that am...
by airahcaz
Mon Jul 28, 2014 1:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 24
Views: 1330

Re: Inherited accounts

Right, so given recent responses, if the beneficiary inherits and then distributes, exceeding $14K per year, that is treated as a gift (regardless of lifetime exclusion). Bottom line, that unless the other two siblings are listed as beneficiaries, then the distribution of the whole to the parts will...
by airahcaz
Mon Jul 28, 2014 12:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 24
Views: 1330

Re: Inherited accounts

There is no gift tax cause of the Will? Probably because of the lifetime exemption. How much money are we talking about? Right for most people the only effect would be filling out the IRS forms. I suppose that depends, if the beneficiary now needs to disseminate to the other two siblings, is the gi...
by airahcaz
Mon Jul 28, 2014 11:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 24
Views: 1330

Re: Bank account to teach kids

Unless you are talking about large sums of money, why bother with a bank at that age. Just set up a spread sheet and you can be the bank. This is what I plan to do (when I get around to it...) Being the Bank, I'll also pay the kids higher interest so they can get excited about saving. My credit uni...
by airahcaz
Mon Jul 28, 2014 11:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Bank account to teach kids
Replies: 8
Views: 337

Re: Inherited accounts

Does the sole beneficiary then distribute the funds after receiving the inheritance, and can avoid gift tax, with the Will as evidence? The will only covers things that go through probate and beneficiaries on IRAs etc. do not go through probate so the executor has no legal obligation to share that ...
by airahcaz
Mon Jul 28, 2014 11:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 24
Views: 1330

Re: Bank account to teach kids

if you have a Capital 360 (formerly ING Direct) savings account, you can easily set up Kids' savings acct that are linked to yours (so you can easily fund). But i agree that 5 is pretty early to start - but each child is different. Fair enough - but would want to start with a bank with local branches
by airahcaz
Mon Jul 28, 2014 11:09 am
 
Forum: Personal Finance (Not Investing)
Topic: Bank account to teach kids
Replies: 8
Views: 337

Bank account to teach kids

My children are under the age of 5, but I would like to start teaching them the boglehead way, and how savings works. TB Bank has a UTMA, as do most, as well as the Penny Arcade.

Any other suggestions?

Thanks
by airahcaz
Mon Jul 28, 2014 10:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Bank account to teach kids
Replies: 8
Views: 337

Re: Inherited accounts

This is not for me but basically a hypothetical example/question. A person refuses to share the details of his Will with his three children (ill advised, but let's not debate that here). One of three children is the executor of the Will and is sole beneficiary on the account. However, it is later fo...
by airahcaz
Mon Jul 28, 2014 7:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 24
Views: 1330

Re: Inherited accounts

Can the beneficiary change the beneficiaries if the will stipulates something different? (So that a beneficiary wouldn't have to redistribute funds after receiving the inheritance) This occurs when a parent did not want to disclose or discuss specifics in the Will prior (happens often unfortunately...
by airahcaz
Mon Jul 28, 2014 12:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 24
Views: 1330

Re: Inherited accounts

Can the beneficiary change the beneficiaries if the will stipulates something different?
(So that a beneficiary wouldn't have to redistribute funds after receiving the inheritance)

This occurs when a parent did not want to disclose or discuss specifics in the Will prior (happens often unfortunately)
by airahcaz
Mon Jul 28, 2014 12:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 24
Views: 1330

Inherited accounts

Are there any tax documents, such as 1099's, reported for inherited accounts, such as brokerage, 401K, IRA's? What documentation, if any, is produced, other than a normal statement?

Thanks.
by airahcaz
Sun Jul 27, 2014 10:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 24
Views: 1330

Re: 401K rollover to another 401K

I believe one also doesn't have to decide this immediately? One can wait years and THEN decide to roll to new employer's 401K?
by airahcaz
Thu Jul 17, 2014 9:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K rollover to another 401K
Replies: 9
Views: 556

Re: 401K rollover to another 401K

You might also consider these questions: 1) Loan provisions of receiving plan 2) In service distribution options for the transferred funds 3) Hardship distribution provisions (access to funds) vrs having full access to old plan balance because you separated Advantages of transfer to current 401k: 1...
by airahcaz
Thu Jul 17, 2014 7:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K rollover to another 401K
Replies: 9
Views: 556

Re: 401K rollover to another 401K

Seems more disadvantages than advantages (again just comparing 401K to 401K and not rollover to IRA, whole other topic)
by airahcaz
Thu Jul 17, 2014 6:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K rollover to another 401K
Replies: 9
Views: 556

401K rollover to another 401K

Hi All -

What are the factors in deciding whether to keep a 401K at an old employer or roll it into the new employer’s?

Ease of having one account?
Fees, fund choices, what else?
If one rolls it over to another 401K, does the costs basis follow, or is that lost?

Thanks
by airahcaz
Thu Jul 17, 2014 10:26 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K rollover to another 401K
Replies: 9
Views: 556

Re: AAPL

new 52 week high...
by airahcaz
Mon Jul 14, 2014 11:48 am
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

Fundamentally you miss the point that mich doesn't want to sell the stock now, so you're recommendation is not in-line with the request. I'm not missing that point, it's why I said "or continue holding for tax reasons". I also think selling is best. I consider myself free torrecommend som...
by airahcaz
Sat Jul 12, 2014 7:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

Sell the stock now or continue holding for tax reasons if he must, no option transaction. Then the rewards for risk are clear and you don't have to wonder whether that $9.70 was a good price. Which mich_bogle is probably in no position to determine compared to his Wall Street counterparts. When wou...
by airahcaz
Sat Jul 12, 2014 3:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

Sell the stock now or continue holding for tax reasons if he must, no option transaction. Then the rewards for risk are clear and you don't have to wonder whether that $9.70 was a good price. Which mich_bogle is probably in no position to determine compared to his Wall Street counterparts. Fundamen...
by airahcaz
Sat Jul 12, 2014 3:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

Yes, I too meant the stock is the risky asset. The problem is, once the stock hits the strike price you are left with a risky asset with no reward. When I sit on risky assets, I demand to be paid. And you ado get paid, no question about it. The advantage of the covered call is the $9.70. The questi...
by airahcaz
Sat Jul 12, 2014 2:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

Again, for mich, or anyone, willing to hold the stock long term, regardless if it goes down, perhaps rather significantly, or not, and also willing to sell it at $100 if they are 'called' away, a covered call is the exact trade for this, whilst taking in a decent premium of $9.7 per contract, or $9...
by airahcaz
Sat Jul 12, 2014 2:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

The delta will be very very close, and yes the seller ACCEPTS the fact that there is an opportunity cost and also downside risk, but in the end, by expiration, the stock above $100, they sell for $109.70. Stock below $100, they get the $9.7 TODAY and still hold the underlying, which the seller is p...
by airahcaz
Sat Jul 12, 2014 9:26 am
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

Thanks for the clarifications. I should probably have held off because I realized I did not have 100% understanding of how this transaction works, but I did run it past a friend who works at a brokerage for a sanity check before executing. In the meantime while I wait for the option to either exerc...
by airahcaz
Wed Jul 09, 2014 12:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

As the stock significantly increases beyond $100, the likelihood of being called away is actually very high (one does not need to wait for expiration). In fact, can execute the transaction themselves, namely by selling the stock and buying the call back! This is a good purpose of covered calls, whe...
by airahcaz
Wed Jul 09, 2014 12:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

For others curious about this strategy, I just executed a covered call sale. I was able to get $970 this way. If AAPL goes above $100 anytime in the next year, then I will automatically sell the stock -- which I would have done anyway. I've been researching them, and as best I can tell they are kin...
by airahcaz
Wed Jul 09, 2014 12:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

AAPL is my only stock holding that I have a hard time trimming. All the others I hold are simply held because their capital gains are too high. AAPL is the same as I bought at $87-92/share before the latest split. When it was over $400, I sold half of my holdings to "make back" my money. ...
by airahcaz
Tue Jul 08, 2014 7:32 am
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

Two months ago AAPL represented about 50% of my portfolio. Now I am converting it to a boglehead portfolio and have sold off 75% of my holdings. It's been a busy month of selling. :) I applaud you in being able to sell your AAPL stock as you make the conversion. How are you handling that emotionall...
by airahcaz
Mon Jul 07, 2014 11:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

mich_bogle wrote:Two months ago AAPL represented about 50% of my portfolio. Now I am converting it to a boglehead portfolio and have sold off 75% of my holdings. It's been a busy month of selling. :)


Cause you started a long time ago, or did you decide to buy a decent chunk in the past few years?
by airahcaz
Mon Jul 07, 2014 5:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: AAPL

52 week high
by airahcaz
Mon Jul 07, 2014 5:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: Fidelity customer with Vanguard envy

As a Fido customer, have plenty invested in their index funds. Have a few thousand in cash to be invested and feel to open a Vanguard account, for the sake of simply having a Vanguard account (and perhaps diversifying across brokerages, although the diversification will be trivially small). Do it? ...
by airahcaz
Thu Jul 03, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity customer with Vanguard envy
Replies: 13
Views: 1276

Re: Fidelity customer with Vanguard envy

Fidelity has awesome chat. How is VG's ability to ask questions from their site and their email response?
by airahcaz
Thu Jul 03, 2014 9:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity customer with Vanguard envy
Replies: 13
Views: 1276

Re: Fidelity customer with Vanguard envy

Ya, t isn't about savings, cause if it is $10K, then the savings is miniscule, and yes time typing here costs me more :)

It was really just a, eh, should I see what they're all about, start with $10K, and maybe grow it more on the VG side - or not.
by airahcaz
Thu Jul 03, 2014 8:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity customer with Vanguard envy
Replies: 13
Views: 1276

Re: Fidelity customer with Vanguard envy

If you're holding a basic 3 fund portfolio (Total Market Index, Global ex US, US Bond Index), Fidelity's offerings are competitive. Outside those 3 funds, Vanguard probably has better low cost options without needing to resort to ETFs. Vanguard definitely has better options for: 1) funds of funds -...
by airahcaz
Thu Jul 03, 2014 8:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity customer with Vanguard envy
Replies: 13
Views: 1276

Fidelity customer with Vanguard envy

As a Fido customer, have plenty invested in their index funds. Have a few thousand in cash to be invested and feel to open a Vanguard account, for the sake of simply having a Vanguard account (and perhaps diversifying across brokerages, although the diversification will be trivially small). Do it?
by airahcaz
Thu Jul 03, 2014 8:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity customer with Vanguard envy
Replies: 13
Views: 1276

Re: House purchase negotiation

It seems to me this is the home you want. Several of your posts indicate that. You have that certain feeling about it. If it is not completely nuts, try to get it, even if it is a little more than you wanted to pay. If it is completely stupid to go forward, then don't. The other fairly real risk is...
by airahcaz
Wed Jun 11, 2014 7:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: House purchase negotiation
Replies: 29
Views: 2186

Re: House purchase negotiation

Now you have become an advocate for the seller. That's not a good unemotional position to be in. It will be a twenty year home, after searching for a while, and risking finding something similar in same price range. Yes there is a bit of emotion I'll admit, as we're looking for a house to become a ...
by airahcaz
Wed Jun 11, 2014 6:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: House purchase negotiation
Replies: 29
Views: 2186

Re: House purchase negotiation

Train is a non issue, it is not that close to the house where it would make it vibrate, but it does sound its horn (once or twice) as it passes by in all of less than 10 seconds. We have been on and off looking for over a year, and is one of the best at this price point that we've found - size, new,...
by airahcaz
Wed Jun 11, 2014 12:56 am
 
Forum: Personal Finance (Not Investing)
Topic: House purchase negotiation
Replies: 29
Views: 2186

Re: Stock split and options

1. They are very illiquid. Very few people, if any at all, trades adjusted options in the open market. In fact, most options trading brokers don't present adjusted options in their options chains by default. 2. They usually have very wide bid ask spreads. This is because market makers are going to ...
by airahcaz
Tue Jun 10, 2014 8:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Stock split and options
Replies: 1
Views: 181

Stock split and options

After a stock spilt, what happens if an option doesn't split "nicely"?

For instance AAPL strike of 750 now creates a very illiquid strike of 107.1428571428571?
by airahcaz
Tue Jun 10, 2014 7:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Stock split and options
Replies: 1
Views: 181

Re: House purchase negotiation

A couple of comments: A house is worth what it will sell for and that house has sat on the market for 6 months. How long have comparable houses in that market taken to sell, and at what price? If you do not get that particular house at the price you want to pay - how does that affect your life and ...
by airahcaz
Mon Jun 09, 2014 9:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: House purchase negotiation
Replies: 29
Views: 2186

Re: House purchase negotiation

House is 6 years old and little to no maintenance required. It has not been "abused" and shows really well (the lawn can be better manicured and landscaped but...)

As for SS timing, we are familiar, and if the SS takes 6-9 months we'd be ok with that.
by airahcaz
Mon Jun 09, 2014 9:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: House purchase negotiation
Replies: 29
Views: 2186

Re: House purchase negotiation

Boglegrappler wrote:Why don't you go the the town hall or records repository and see what the mortgage is against the house? It might give you some insight into their frame of reference in negotiating a deal.


We know they DO owe at least 10% more than our bid and are in arrears.
by airahcaz
Mon Jun 09, 2014 6:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: House purchase negotiation
Replies: 29
Views: 2186

Re: Poll: Luxury and Happiness

I buy things that might be considered luxury items when I get (or think I get) a better value for money. So in me you have the apparent contradiction of a guy walking out of the grocery store with a bag full of store brand and sale items and throwing it into the back of a Lexus. In no particular or...
by airahcaz
Mon Jun 09, 2014 5:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Luxury and Happiness
Replies: 141
Views: 8116

Re: Poll: Luxury and Happiness

Interesting - seems all relative, as base on posts here, these can be seen as luxuries: Leather seats in a vehicle Going from an older vehicle to a 3 year old vehicle Shopping at Whole Foods A watch that costs more than $10 Jewelry - All Paying for private school Cable TV Manicures and pedicures on ...
by airahcaz
Mon Jun 09, 2014 4:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Luxury and Happiness
Replies: 141
Views: 8116

Re: AAPL

After split, a little more than 6 points to all time highs
by airahcaz
Mon Jun 09, 2014 4:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 156
Views: 34249

Re: House purchase negotiation

The seller's broker is trying to scare you into offering as much as possible. That way, the seller accepts easily and his commission check is big. Lowball them and let them counteroffer. Perhaps mention to the broker that you want an answer fast because you want to put a bid on your second choice i...
by airahcaz
Mon Jun 09, 2014 4:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: House purchase negotiation
Replies: 29
Views: 2186

House purchase negotiation

Hi folks, We are interested in purchasing a house that has sat on the market for over 6 months. Seller's broker claims they have had multiple all cash overs but not at the price they want. Now the house has been relisted with 'possible short sale' appended to it. This makes us believe the seller wou...
by airahcaz
Mon Jun 09, 2014 4:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: House purchase negotiation
Replies: 29
Views: 2186

Re: Poll: Luxury and Happiness

Virtually everyday when I start my Lexus ES. Also, I still look back very fondly on exotic trips I have taken over the years. My new computer monitor is fantastic and so much easier on my eyes. I think the fact I don't buy anything expensive impulsively helps. Sounds like I should have bought Lexus...
by airahcaz
Wed Jun 04, 2014 11:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Luxury and Happiness
Replies: 141
Views: 8116

Re: Canadian RRSP

Your last paragraph is the scenario. I suppose if Canada has no early withdrawal penalty other than the taxes which would be due anyway, and the hassle of the forms annually, it may make the case to cash out - and might outweigh any real advantages (don't seem many) in keeping it there? Really appr...
by airahcaz
Sat May 31, 2014 11:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Canadian RRSP
Replies: 18
Views: 1400

Re: Who is doing In Plan Roth conversions?

What are the gap years? The gap years are the low-income years after you retire, before you start pension/SocialSecurity. In my case, I retired at 61, will start pension at 65 and Social Security at 70. So I have several years with little or no taxable income. I can take advantage of the standard d...
by airahcaz
Thu May 29, 2014 8:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Who is doing In Plan Roth conversions?
Replies: 35
Views: 2548
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