Search found 1739 matches

by MN Finance
Sat Feb 25, 2017 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Annuities vs bonds
Replies: 22
Views: 725

Re: Annuities vs bonds

Are those "okay" in any circumstances? You have been around BH for a few months. So you know how we feel about fund expenses. We run yelling and screaming away from a mutual fund with an ER that is even 1%. Typical annuity expenses are about 2.5% per year. I think it's assumed the OP is t...
by MN Finance
Fri Feb 24, 2017 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Talking with parents' financial advisor
Replies: 46
Views: 3285

Re: Talking with parents' financial advisor

Trading stocks every day. WOW :!: :!: :!: Yes, the impact of that on the OP's parent's taxes is likely staggering. Seriously this guy needs to be ditched. Of all of this discussion on whether to help the OP parents or not, or whether the OP parents really wants help is not as nearly as serious as t...
by MN Finance
Fri Feb 24, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: How much are independent contractors really taxed?
Replies: 34
Views: 1634

Re: How much are independent contractors really taxed?

As said, the total tax means nothing in this question. The total difference in tax between contract work and employment is probably 7.65%. That said, if you are actually choosing between two jobs, they are probably vastly different in both total economics and work life, so the comparison is very ind...
by MN Finance
Fri Feb 24, 2017 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Talking with parents' financial advisor
Replies: 46
Views: 3285

Re: Talking with parents' financial advisor

I think it's usually a really bad idea to stick your nose in your parents finances, unless you actually know what you're doing, but that's just me. You aren't just replacing high cost investments with low cost investments, you're personally taking on the role of being their new advisor. That's fine ...
by MN Finance
Thu Feb 23, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Investing Options for Children
Replies: 7
Views: 478

Re: Flexible Investing Options for Children

I personally don't understand the psychology of separating the money from your own. It seems like a feel good idea with no real benefit when you consider the hundreds of thousands you'll spend on the kids anyway. That said, the only real benefit is something like the 529 which you control and is rea...
by MN Finance
Thu Feb 23, 2017 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Stay in cash until rates rise?
Replies: 27
Views: 2389

Re: Stay in cash until rates rise?

Since bond funds decrease in value rather quickly when the fed raises rates ... You are concluding a couple things that are blatantly false or non existent. First bond funds are not tied to the Feds rate policy. Second, even if they were (again they're not,) there's nothing quick or slow about it. ...
by MN Finance
Tue Feb 21, 2017 3:24 pm
Forum: Investing - Theory, News & General
Topic: Help with standard deviation, volatility comparing slice and dice with 3-fund portfolios
Replies: 9
Views: 362

Re: Help with standard deviation, volatility comparing slice and dice with 3-fund portfolios

Those two portfolios aren't really comparable at all - different stock/bond mixes, different us/int equity, different credit risks (and probably term too), different exposure to small and value on the equity size. That's kind of the point. If you slice and dice you have exposure to riskier asset cl...
by MN Finance
Mon Feb 20, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: CFA or other qualified hourly professional recommendation
Replies: 4
Views: 347

Re: CFA or other qualified hourly professional recommendation

It wouldn't be a CFA, but possible CFP, CPA or attorney. What is the area you're trying to figure out (taxes, legal, other?)
by MN Finance
Thu Feb 16, 2017 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Stock To Adult Children
Replies: 7
Views: 552

Re: Gifting Stock To Adult Children

Yes, this is a common and simple strategy. A couple cautions: if they are getting any aid, adding capital gains could impact this since it will be on their tax return as taxable income (even if no tax is owed.) Second, most states tax cap gains like ordinary income, so need to account for that.
by MN Finance
Thu Feb 16, 2017 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Investing Advice for Baby/Infant
Replies: 15
Views: 1174

Re: Investing Advice for Baby/Infant

flyingbison wrote:
Easy Rhino wrote:I created a 529 for my daughter, specifically to hold cash gifts from relatives. Which honestly aren't that much, she's only 4.



Gifts to you, or gifts to your daughter? If you own the 529, I wouldn't be putting gifts made to someone else into it.

Wow.
by MN Finance
Wed Feb 15, 2017 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: charitable giving & transaction fees/costs
Replies: 4
Views: 162

Re: charitable giving & transaction fees/costs

For convenience we sometimes use credit cards for small donations. For anything larger we specifically don't use cards and write checks for just this reason. No idea what you may consider small or large, but we gave 7500 the other day, which to us was large, and I delayed the gift a week or two unti...
by MN Finance
Wed Feb 15, 2017 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Long treasury ETF
Replies: 3
Views: 204

Re: Long treasury ETF

I would just trade one or two Treasury bonds and hold those instead. Lots of platforms have free or virtually free commissions on those, and the liquidity is good in the Treasury market. What do you need an ETF for? Just run out and grab a ~30 year Treasury and ~20 year Treasury and call it a day. ...
by MN Finance
Wed Feb 15, 2017 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Long treasury ETF
Replies: 3
Views: 204

Long treasury ETF

I've looks through threads, but not much discussion on this. Is there a consensus on "best" long treasury ETF? The obvious choices are: PIMCO (ZROZ) Vanguard (EDV) Spider (TLO) iShares (TLT) As with most categories, iShares volume (9M) is way above all the other combined, but its ER is a b...
by MN Finance
Fri Feb 10, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1630

Re: Life estate at death

That you sir! The estate isn't subject to estate tax, but knowing the estate amount helps figure out the cap gain issue.
by MN Finance
Thu Feb 09, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Maximizing Solo 401k vs. minimizing self employment tax
Replies: 9
Views: 698

Re: Maximizing Solo 401k vs. minimizing self employment tax

I've had to make a similar decision. We've elected to increase salary maybe a little more than we could get away with because 1) it allows more contribution space and 2) it reduces the chances of someone questioning the dividend. Once you're above the wage base, then it doesnt really matter (2.9%). ...
by MN Finance
Thu Feb 09, 2017 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: VA: Axa Accumulator to keep or not?
Replies: 15
Views: 1179

Re: VA: Axa Accumulator to keep or not?

Yes, since my Father, the annuitant, passed away the cash value which was less than the death benefit has now reset to the current death benefit amount. They are equal right now. The death benefit would grow 6.5% a year till my mother turns 85yo or until she annuitizes it. We really don't need this...
by MN Finance
Thu Feb 09, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1630

Re: Life estate at death

Does anyone have an opinion on the whole property being stepped up at the second death? I'm not sure why I thought it was 50/50, one at each death. "Somewhat comparably, when an asset is jointly owned by a couple and one dies, half the asset is stepped up. When the second dies, the whole asset ...
by MN Finance
Thu Feb 09, 2017 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1630

Re: Life estate at death

Mom did not have a full power of appointment (not that we tried to test it in anyway.) Although I'm questioning my original thought that half gets stepped up at each death. When dad died, the property didn't get re-titled or divided into separate interests... what makes their interests individual?? ...
by MN Finance
Thu Feb 09, 2017 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1630

Re: Life estate at death

The part that I'm slightly confused by is that there was a life interest for both mom and dad and how the two interests are divided. If mom (surviving spouse) had no power of appointment, then your original characterization would appear to be accurate. See Rev Rul 69-577. If the surviving spouse re...
by MN Finance
Wed Feb 08, 2017 11:56 pm
Forum: Investing - Help with Personal Investments
Topic: VA: Axa Accumulator to keep or not?
Replies: 15
Views: 1179

Re: VA: Axa Accumulator to keep or not?

I may have missed it, but there are only a couple important values, which I didn't see 1. what is the cash value if she wants out 2. what is the death benefit and 2(b) how does it grow Those two answers simplify the discussion. The guaranteed w/d balance stuff is not relevant because it's all smoke ...
by MN Finance
Wed Feb 08, 2017 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1630

Re: Life estate at death

Thanks for the replies. It appears most of you vote for it being a gift and no step up in basis. That's actually not the part that confuses me, because it's clear to me that part isn't correct. Mom retained a life interest, so it's not a completed gift. As such it's part of mom's estate. As such, it...
by MN Finance
Wed Feb 08, 2017 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1630

Life estate at death

Came across this question and have run it by our CPA but want to double check. Family home transfered into a life estate in 2004 where mom and dad retained a life interest. Kids are the remaindermen. Dad passed away in 2009. Mom passed away in 2014. My understanding is that half of the property woul...
by MN Finance
Mon Feb 06, 2017 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: low cost one person DB plan
Replies: 27
Views: 1803

Re: low cost one person DB plan

My assumption was that nobody really takes the annuity when they retire. Instead, they just roll over the lump sum into an IRA. Only 2%, which is really interesting because annuitizing it out with a life time payout is the benefit, but only with a low-cost TIAA or Vanguard annuity. What happens is ...
by MN Finance
Fri Feb 03, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: giving stock to adult child
Replies: 6
Views: 674

Re: giving stock to adult child

My guess is that you wouldn't want her to have taxes due at tax time which would be true of the stock. I would give cash assuming you have it.
by MN Finance
Fri Feb 03, 2017 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Question re: Net Unrealized Appreciation (NUA)
Replies: 4
Views: 380

Re: Question re: Net Unrealized Appreciation (NUA)

I have no reference but your proposed idea doesn't pass any logic tests, so clearly the answer is no. The record keeper will track the basis of the actual shares just like in a conventional non qualified account. New purchases would have a new basis.
by MN Finance
Thu Jan 26, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: AA-Bad time to switch VBTLX to VTSAX with record DOW?
Replies: 6
Views: 483

Re: AA-Bad time to switch VBTLX to VTSAX with record DOW?

You're not actually asking if it's a bad time to buy stocks, since you would probably agree the price is lower today than it will be when your heirs draw it out decades from now. What you're actually asking is that, considering you think stocks are highly prices today, do you have the ability to cor...
by MN Finance
Fri Jan 20, 2017 8:38 pm
Forum: Investing - Theory, News & General
Topic: RMD question
Replies: 20
Views: 2548

Re: RMD question

You should manage your allocation and you should take your RMDS, but there's no need to do both at the same time. You didn't when you put the money it.
by MN Finance
Sat Jan 14, 2017 12:55 am
Forum: Investing - Help with Personal Investments
Topic: Max Roth IRA Contributions with S-Corp?
Replies: 12
Views: 932

Re: Max Roth IRA Contributions with S-Corp?

Not your question, since I think it's answered, but you can also/or use an individual 401k, traditional or Roth, and 1) save more than the Roth IRA and 2) not be subject to income limits.
by MN Finance
Wed Dec 21, 2016 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Interest Deduction
Replies: 23
Views: 2466

Re: Mortgage Interest Deduction

What do you think? Did u try to Google home office deduction? The snarkyness on this forum often gets tiresome. Technically, google can replace the entire site if one wants to go down that road. Agree, especially when some people truly have a mental block with respect to taxes, accounting, legalese...
by MN Finance
Tue Dec 20, 2016 8:19 pm
Forum: Personal Consumer Issues
Topic: If a tree falls
Replies: 60
Views: 4467

Re: If a tree falls

My tree fell on my neighbors property and did damage to another tree. He was a retired insurance agent so we both knew he was liable for the cost on his side of the property line. Regardless I hired someone to take care of it and paid the bill. Was well worth the 500 to start a 10 yr relationship on...
by MN Finance
Sun Dec 18, 2016 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Interest Deduction
Replies: 23
Views: 2466

Re: Mortgage Interest Deduction

What do you think? Did u try to Google home office deduction?
by MN Finance
Sun Dec 18, 2016 10:20 am
Forum: Investing - Theory, News & General
Topic: 100% Stocks, Huh? May I Suggest You Read This Thread
Replies: 55
Views: 7400

Re: 100% Stocks, Huh? May I Suggest You Read This Thread

How many people use intermediate treasury as their bond exposure?

In many cases the bond component hugely impacts the results... just like the fallacy that 20% equities is safer than 0%, which is more a statement of the bonds not the stocks.
by MN Finance
Wed Dec 14, 2016 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Will it be better to move to Schwab from Vanguard?
Replies: 23
Views: 2369

Re: Will it be better to move to Schwab from Vanguard?

I don't think it matters but my guess is that the older generation is happy with Vanguard but the current generation probably won't be as happy and will see more value in the fidelity/Schwab world and might be a slow migration. Not that VG asset base will ever decline but direct clients might
by MN Finance
Mon Dec 12, 2016 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 5039

Re: Forever stocks (and building your own index fund)

You're all talking about tax control, which is real, but all these articles and studies compare doing nothing to doing something. The OP (remember the OP?) isn't in that boat. If we assume the delta is the difference between doing something with index funds or doing something with a self constructed...
by MN Finance
Sun Dec 11, 2016 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 5039

Re: Forever stocks (and building your own index fund)

There's nothing wrong with creating your own index fund (assuming you're not trying to only selectively pick forever stocks which is a magnificently faulty premise.) The problem being pointed out is execution. For all those who have decided to allocated their large cap us equities to the DOW then it...
by MN Finance
Sat Dec 10, 2016 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains on Sale of Investment Property (California)
Replies: 5
Views: 376

Re: Calculating Capital Gains on Sale of Investment Property (California)

As mentioned, I think you can pretty easily estimate the impact by running a faux return in your tax software or through your CPA.

As a side note, I assume this doesn't apply, but if you are doing any sort of structured sale (payments over time) then the tax situation would be very different.
by MN Finance
Sat Dec 10, 2016 10:06 am
Forum: Investing - Theory, News & General
Topic: How to start a hedge fund
Replies: 23
Views: 2046

Re: How to start a hedge fund

I can only imagine the replies you'll get. My only point is that setting up a plumbing business is easy. Getting people to trust you with their plumbing needs entirely another, totally unrelated and separate issue. You can't succeed with the the former and not the latter, though the latter and not t...
by MN Finance
Sat Dec 10, 2016 10:02 am
Forum: Personal Finance (Not Investing)
Topic: In a tough situation with a leased vehicle
Replies: 23
Views: 2720

Re: In a tough situation with a leased vehicle

I didn't really look at all the math, but I wouldn't overthink this. The company car plan will likely not be vastly different than the current allowance plan. Maybe slightly, but not enough for you to carry two cars, that's for sure. You should probably continue with your current lease and allowance...
by MN Finance
Mon Dec 05, 2016 9:25 pm
Forum: Investing - Help with Personal Investments
Topic: RMD Dilemma
Replies: 30
Views: 3954

Re: RMD Dilemma

I don't know how they can be too large, but sure, you'll have to pay taxes on the 7M eventually. I would put the next 10 or 20 years on a spreadsheet and project your taxable income. You'll see a shift before and after RMDS. If your income before RMDS is 100k and after 300k, then use the years prior...
by MN Finance
Mon Dec 05, 2016 9:09 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk. Using puts to hedge.
Replies: 26
Views: 1826

Re: Sequence of returns risk. Using puts to hedge.

I definitely understand the logic (and the counter points made), but the number one issue is one that was just mentioned by lackeys. You can't get a long term fixed insurance price based on today's market values. If you could then the discussion would be more interesting. In a multi year slowly decl...
by MN Finance
Mon Dec 05, 2016 8:47 pm
Forum: Investing - Theory, News & General
Topic: When is the five years up for Roth conversion
Replies: 7
Views: 1213

Re: When is the five years up for Roth conversion

Being 59.5 doesn't impact the 5 year clock, nor does the contribution question really.

The clock starts Jan 1 2012, which is the beginning of the tax year of the conversion
by MN Finance
Sun Dec 04, 2016 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: My broker has only assets slightly over 1 million USD, should I be worried?
Replies: 21
Views: 4057

Re: My broker has only assets slightly over 1 million USD, should I be worried?

To my surprise, the broker holds only about 1'200'000$ in total assets and the same sum in total liabilities and members equity. This has nothing to do with how much money they manage. This is from their balance sheet. By accounting definition assets = liabilities + equity. The business has assets ...
by MN Finance
Sun Dec 04, 2016 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Transfer Inherited Non-tax Qualified Annuity
Replies: 12
Views: 903

Re: Transfer Inherited Non-tax Qualified Annuity

Yes, the payments are proportional in a life expectancy payout but thay would not apply to a 5 year payout, which would be earnings first. That said, a 5 year payout doesn't mean it has to be paid out in 5 equal annual installment, but rather that it's just distributed by the end of the 5 year perio...
by MN Finance
Sat Dec 03, 2016 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Transfer Inherited Non-tax Qualified Annuity
Replies: 12
Views: 903

Re: Transfer Inherited Non-tax Qualified Annuity

Ps, are you sure this is a non qualified annuity? Many hints in the language ur using imply it might not be.
by MN Finance
Sat Dec 03, 2016 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Transfer Inherited Non-tax Qualified Annuity
Replies: 12
Views: 903

Re: Transfer Inherited Non-tax Qualified Annuity

Annuities companies won't take inherited contracts, not that they cant, but they wont. You're only option is to settle the contract with the originating firm. You also most certainly can't move it to an IRA, though what you probably mean is that it stays in an annuity and has distributions like an i...
by MN Finance
Mon Oct 31, 2016 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Any reason to purchase on Exchange if don't qualify for subsidy
Replies: 13
Views: 1573

Re: Any reason to purchase on Exchange if don't qualify for subsidy

When I tried my exchange a couple yrs ago I was dejected to admit the critics of the websites were right. It was a nightmare. Buying off exchange for me was as simple as buying anything else online (used ehealthinsurnace)
by MN Finance
Mon Oct 31, 2016 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Missed RMD on Inherited IRA - helping mom out
Replies: 6
Views: 921

Re: Missed RMD on Inherited IRA - helping mom out

If I was self preparing my mom's return I would just take the whole thing out, pay tax and call it done.

If I was a tax preparer filing a return for a client I would probably do the same and also file an exception request.

Either way the result is the same and she's not going to pay a penalty.
by MN Finance
Sun Oct 30, 2016 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Can I collect unemployment if I had a side-business?
Replies: 15
Views: 1846

Re: Can I collect unemployment if I had a side-business?

Just Google this or go to the state website and apply for benefits. You'll figure it out a lot faster than having posters opine about the rules.
by MN Finance
Sat Oct 29, 2016 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Selling practice for a lump sum
Replies: 39
Views: 3676

Re: Selling practice for a lump sum

What does your partnership say about selling ownership? I would assume you have first right of refusal and/or a predefined valuation and could buy out the partners who want to sell. That's probably the end result if you don't sell now and there is a spread in ages.
by MN Finance
Sat Oct 29, 2016 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance rates went up
Replies: 155
Views: 14100

Re: Health Insurance rates went up

Alternatives? Don't get Healthcare. That's my plan

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