Search found 1704 matches

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: 4
Views: 219

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: 8
Views: 557

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: 17
Views: 1503

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: 26
Views: 2889

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: 1621

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: 1097

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: 3924

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: 751

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: 751

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: 751

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: 1500

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: 878

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: 1699

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: 3544

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: 11862

Re: Health Insurance rates went up

Alternatives? Don't get Healthcare. That's my plan
by MN Finance
Fri Oct 28, 2016 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Selling practice for a lump sum
Replies: 39
Views: 3544

Re: Selling practice for a lump sum

I don't really think there's a breakeven as you're describing it because if you don't sell, you still retain ownership value and would eventually sell that someday. So in that sense it's always better to not sell. The main factor would be the future value of the business. I would assume you would s...
by MN Finance
Fri Oct 28, 2016 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Selling practice for a lump sum
Replies: 39
Views: 3544

Re: Selling practice for a lump sum

I guess you can apply a discount rate to your investment of the sale proceeds and the business future value. Your income is reduced by 170k per year, in exchange for that you get 1.75m less taxes. Your comparison would be the future value of the business less your lost income compared to the growth ...
by MN Finance
Fri Oct 28, 2016 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: Selling practice for a lump sum
Replies: 39
Views: 3544

Re: Selling practice for a lump sum

I don't really think there's a breakeven as you're describing it because if you don't sell, you still retain ownership value and would eventually sell that someday. So in that sense it's always better to not sell. The main factor would be the future value of the business. I would assume you would se...
by MN Finance
Fri Oct 28, 2016 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: General questions about Self-Directed IRAs
Replies: 12
Views: 462

Re: General questions about Self-Directed IRAs

No, no. Stop with the self directed IRA. You can't add to another IRA if you've already done so. Second you don't have to separately contribute to a self directed ira. You take money already in an IRA and move it to an IRA custodian that can manage non traditional investments like real estate. It in...
by MN Finance
Fri Oct 28, 2016 7:15 pm
Forum: Investing - Theory, News & General
Topic: Why Doesn't the DOL Understan the Term "Fiduciary"?
Replies: 21
Views: 2107

Re: Why Doesn't the DOL Understan the Term "Fiduciary"?

I have no comment on the regs going into place, but it's frequently clear to me that it's not the DOL who doesn't understand the meaning of fiduciary, but rather the posters here (not that I disagree with the outrage of certain practices, but outrage does not equate to a failure of fiduciary duty.)
by MN Finance
Fri Oct 28, 2016 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Sued for General [Investment] Advice?
Replies: 43
Views: 5389

Re: Sued for General Advice?

You know how when there is a lull in traffic and someone is trying to pull out in front of you and you motion to them that it's all clear and then a car pulls out of nowhere and slams into them and you get sued, it's the same principle. Honestly, unless you're making trades on their account or char...
by MN Finance
Fri Oct 28, 2016 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: General questions about Self-Directed IRAs
Replies: 12
Views: 462

Re: General questions about Self-Directed IRAs

There a like 10 things that make this difficult if not impossible at this point. I'm not sure if the details of any of those things matter. No trying to reject your idea without explanation but you're best off crossing this idea off your list. And I should note that the quality of the investment has...
by MN Finance
Fri Oct 28, 2016 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Sued for General [Investment] Advice?
Replies: 43
Views: 5389

Re: Sued for General Advice?

Giving investment advice requires licensing. If you are unlicensed and give advice you are practicing without a license, though the state or feds are unlikely to care that a layperson gives advice. They would be more concerned with an unlicensed professional giving advice (ex, an insurance agent giv...
by MN Finance
Wed Oct 26, 2016 7:08 pm
Forum: Investing - Help with Personal Investments
Topic: Email from Financial Advisor
Replies: 31
Views: 4894

Re: Email from Financial Advisor Round 2

While I'm all for grass roots change, I would pick my battles. I'm guessing your job is more important than the 401k I also wouldn't argue against their point. There's no sense in trying to change someone's religion at all. I do like the idea that you could mention that companies have been sued for ...
by MN Finance
Wed Oct 26, 2016 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Engineering to Finance (CFA, CFP)
Replies: 34
Views: 2249

Re: Engineering to Finance (CFA, CFP)

It's not an illusion. CFAs make a ton of money in the right roles (ie investment banking). carorun, We could make the same statement for any area. Above average CFA makes a lot of money. Ditto for above average engineer. KlangFool "Above average engineers" make a lot of money? I'd like to...
by MN Finance
Wed Oct 26, 2016 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Engineering to Finance (CFA, CFP)
Replies: 34
Views: 2249

Re: Engineering to Finance (CFA, CFP)

I have a BS in ME, but other than my first job out of college have worked in finance for the last 20 yrs. You didn't say what you want to do. If you know that then it's obviously easier to say what to do. You may want to get a masters in whatever that field is. Otherwise just finish your degree and ...
by MN Finance
Wed Oct 26, 2016 6:48 pm
Forum: Investing - Theory, News & General
Topic: How to Replicate a 3X ETF using 1x ETF Price Data in Excel?
Replies: 13
Views: 1018

Re: How to Replicate a 3X ETF using 1x ETF Price Data in Excel?

RYMDX is one of the oldest leveraged funds, has high fees, high turnover, targets 1.5x Russell 2000 ... and when scaled/compared to the Russell 2000 over the last 15 years : https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2...
by MN Finance
Tue Oct 25, 2016 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Joint Bank Account
Replies: 7
Views: 555

Re: Joint Bank Account-Gift tax issue help

I have no insight on the citizenship issue, but neither 1 or 2 are completed gifts from a transfer standpoint
by MN Finance
Tue Oct 25, 2016 7:11 pm
Forum: Investing - Theory, News & General
Topic: Variable Annuity with Death Benefit
Replies: 16
Views: 1095

Re: Variable Annuity with Death Benefit

You will not get a 5% compounded growth on the $10,000 initial investment guaranteed with no fees. This is all smoke and mirrors (and I am being kind). Either you get 5% on something else other than you original $10,000 (such as cash value) or else there are fees of 2-3% each year. The BH Wiki says...
by MN Finance
Tue Oct 25, 2016 5:18 pm
Forum: Investing - Theory, News & General
Topic: Variable Annuity with Death Benefit
Replies: 16
Views: 1095

Re: Variable Annuity with Death Benefit

Generally something with so many moving parts and costs would not be advised. Given the costs, typically the purchaser is forced into taking the featured benefit as the possibility for normal growth is canaballized by the fees. That said, if someone can promise they won't have a need for the money, ...
by MN Finance
Tue Oct 25, 2016 2:11 pm
Forum: Investing - Theory, News & General
Topic: How to Replicate a 3X ETF using 1x ETF Price Data in Excel?
Replies: 13
Views: 1018

Re: How to Replicate a 3X ETF using 1x ETF Price Data in Excel?

I didn't take time to graph it, but here's the simple historical data over the trailing 5 years... SPY vs SPXL 1257 daily returns SPXL v SPY What magnitude SPXL moved compared to SPY (absolute value): > 3.00X ............. 569 times - 45% 2.75X to 3.00X .... 410 times - 32% 2.50X to 2.75X .... 114 t...
by MN Finance
Mon Oct 24, 2016 10:49 pm
Forum: Investing - Theory, News & General
Topic: How to Replicate a 3X ETF using 1x ETF Price Data in Excel?
Replies: 13
Views: 1018

Re: How to Replicate a 3X ETF using 1x ETF Price Data in Excel?

The reason you can't match the theory to the execution is not an error with your formula. So... it's an issue with execution. I don't have specifics but it's always been a long held understanding that actually realizing daily leveraged X is problematic for lots of reasons. Simply adding borrowing co...
by MN Finance
Sat Oct 22, 2016 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 6297

Re: Healthcare costs and self funding

I have no particular plans to go without healthcare and then in if a huge cost comes up to pick it up... though with my business/employment structure I could create a qualifying event. I'm simply stating that's possible. I don't have any particular problem with "ethics" as this is a produc...
by MN Finance
Fri Oct 21, 2016 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 6297

Re: Healthcare costs and self funding

Here is one actual example: A few years I went to the emergency room and was kept overnight for a one day stay in the hospital for tests. The total bill for all the activities was about $20,000. My out-of-pocket was about $300. 1. A caution, the hospital can keep you for a day or two without admitt...
by MN Finance
Fri Oct 21, 2016 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 6297

Re: Healthcare costs and self funding

Thanks for the thoughtful replies, less one that decided to get fired up for some reason. Clearly there's no intention to put my family at risk, and certainly not just to save a buck, since we can afford premiums. In the current environment, like it or not, we could go without coverage and then pick...
by MN Finance
Thu Oct 20, 2016 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 6297

Re: Healthcare costs and self funding

stlutz wrote:Healthcare insurance is expensive because you are insuring high-cost, high probability events. Most people will run up big expenses at some point.

I don't need to insure high probability events.
by MN Finance
Thu Oct 20, 2016 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 6297

Re: Healthcare costs and self funding

You might look into a high-deductible health plan, which pays nothing (except for preventive care) until you reach a fairly high deductible, but provides good coverage beyond that. The IRS gives an incentive to use these plans, by allowing a tax deduction and tax-free growth on contributions to a H...
by MN Finance
Thu Oct 20, 2016 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 6297

Re: Healthcare costs and self funding

Katietsu wrote:I have seen hospital bills for $1.5 million dollars for premature newborns before they have even left the hospital. Are you prepared to self insure or declare bankruptcy in the case of a catastrophic medical expense?

I'll avoid having a premature newborn.
by MN Finance
Thu Oct 20, 2016 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Realized Gains in a Taxable Account
Replies: 3
Views: 331

Re: Realized Gains in a Taxable Account

Yes those are gains. You may want to consider running a tax projection to see the total impact (likely not a straight percentage) and include state. You also may want to make an estimated payment.
by MN Finance
Thu Oct 20, 2016 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 6297

Re: Healthcare costs and self funding

A boglehead above all else manages risks. The purpose of insurance is is to insure against losses that otherwise would put your financial future at risk. A $500 deductible on a homeowners insurance is an example of paying too much for premiums when you can self-insure a far greater deductible. The ...
by MN Finance
Thu Oct 20, 2016 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover or not for 403b and 457
Replies: 5
Views: 352

Re: Rollover or not for 403b and 457

If they're at TIAA and management of multiple accounts isn't problematic, I would be inclined to leave them. The 457 has good flexibility and the 403 sometimes loan provisions (even if not working at the employer.) Further TIAA has some attractive investment choices not available elsewhere
by MN Finance
Thu Oct 20, 2016 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 6297

Healthcare costs and self funding

Every year we pick a health plan I opine about the possibility of self insuring. A couple years ago I posted the same question and responses were wise and expected. Yet as costs rise the proposition of going without insurance becomes more tempting. I'm wondering if there are thoughts (or maybe some ...
by MN Finance
Wed Oct 19, 2016 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement and 403(b)7
Replies: 3
Views: 465

Re: Early Retirement and 403(b)7

Yes, this is clearly fine. Your previous vendor is part of the same current active plan, regardless of it being with a different investment company and not receiving contributions
by MN Finance
Mon Oct 17, 2016 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Variable annuity for kids
Replies: 15
Views: 1506

Re: Variable annuity for kids

There's nothing particularly bad about a low cost VA, but it's not decisively better than a non retirement account, which means it's close to a wash, yet is more restrictive, so I'd lean away from it. Tax wise you'll need at least 30 years before the tax deferral and negative tax rate changes make u...
by MN Finance
Mon Oct 17, 2016 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and Immediate Annuity Question
Replies: 4
Views: 354

Re: Roth IRA and Immediate Annuity Question

There's nothing unique about annuitizing a Roth, so you'll just shop for an immediate annuity and then when it comes time to purchase check mark the Roth IRA box (as opposed to a traditional ira or non qualified account)
by MN Finance
Mon Oct 17, 2016 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Money lessons for a 3 year old
Replies: 46
Views: 2893

Re: Money lessons for a 3 year old

Age 5 or 6 is when you can introduce something around money, untill then it's not different than anything else you do in parenting. We do allowance for ours. They get something no matter what, can earn for additional chores. Second, they count out their allowance, set aside money to give, which help...
by MN Finance
Fri Oct 14, 2016 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding RMDs
Replies: 20
Views: 3132

Re: Avoiding RMDs

You need to continuously employed throughout the entire year and eligible to participate in the retirement plan. There's no specific number of hours or job you need to work. You can't generally be a contract employee and must be w2.
by MN Finance
Wed Oct 12, 2016 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Guardian Whole Life Policy
Replies: 14
Views: 956

Re: Help with Guardian Whole Life Policy

Agreed that a 1035 is better than a cash out. A couple points 1) the surrender value may be less than the cash value 2) the cost basis is not the sum of the premiums paid, and 3) make sure a new policy is in force before surrendering the old.
by MN Finance
Tue Oct 11, 2016 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Joint non-spouse step up at death
Replies: 3
Views: 410

Re: Joint non-spouse step up at death

Thank you. That was my assumption, but the googler found many results with the opposite opinion.
by MN Finance
Tue Oct 11, 2016 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Joint non-spouse step up at death
Replies: 3
Views: 410

Joint non-spouse step up at death

Treas. Reg 25.2511-1(h)(4) seems fairly clear that simply adding an adult child to an elderly parents investment account does not constitute a gift unless the child begins accessing the funds. Let's assume that's the case (no gift) and it's a joint tenancy account, but then parent dies. Does the ent...

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