Search found 384 matches

by Scorpion
Mon Jan 08, 2024 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Interest on Overpayments paid with IRS tax extension?
Replies: 4
Views: 527

Re: Interest on Overpayments paid with IRS tax extension?

Raycpact wrote: Mon Jan 08, 2024 12:29 pm No interest. However, one strategy is to use and apply any excess toward the 2024 estimated payments that are due at same time. You get credit for the payment effective 4/15/24.
Thanks, that's a nice option - but of course I guess I would have already had to make my estimated payment by 4/15/24, so applying the overpayment would I guess just in essence be prepaying a later quarter estimated payment (unless I purposely underpay the 4/15 payment, which I could only do if I truly knew the amount I was sending in was a substantial overpay, which I guess I can't know).
by Scorpion
Mon Jan 08, 2024 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Interest on Overpayments paid with IRS tax extension?
Replies: 4
Views: 527

Interest on Overpayments paid with IRS tax extension?

Short question: If you file a 1040 extension and include a large overpayment to ensure that you will be paying 100% of what you will owe on the return once completed post April 15th, does the IRS pay interest on the net amount that you overpaid when they send you your refund? I think the answer is no, they do not pay interest, so long as they send you your refund within 45 days of receiving your final return. Background: I assume this will be a pretty easy answer for those of you that have filed IRS extensions before. I have always filed my taxes before April 15th. I do them myself, and they are complicated due to real estate investments in various states. I need to have elective arm and hand surgery this year that will put me out of commis...
by Scorpion
Wed Dec 14, 2022 6:13 pm
Forum: Personal Investments
Topic: I-bond Gifting - think I screwed up
Replies: 14
Views: 1333

Re: I-bond Gifting - think I screwed up

I really appreciate all the responses and welcome further thoughts.

If you guys think it's probably ok to just deliver all the gifts now, I would much rather do that. She has never been buying for herself for all these years, so I think it is pretty obvious what my intent was. Otherwise, I either miss out on buying 10k worth of I-bonds for five years, or I have five years worth of I-bonds in a gift box account that are completely illiquid.

So assuming I do the above, I guess it will be better in future years for us each to buy our own 10k in our own account, and dispense with gifts (putting aside the front-loading idea I also just learned about today).
by Scorpion
Wed Dec 14, 2022 5:09 pm
Forum: Personal Investments
Topic: I-bond Gifting - think I screwed up
Replies: 14
Views: 1333

Re: I-bond Gifting - think I screwed up

OK, so at least only original face value matters - that's good. But couldn't I still just keep buying gifts and not delivering them for years? That's what I meant about being 5 years behind. For example:

Dec 2022: Give her bond from 2017
2023: buy 10k for me, buy 10k gift for her, give her bond from 2018
and so forth.

I guess the consequence of them being in the gift box is that they can't be redeemed? I have never redeemed any, but 5 years' worth would be in the gift box until I die or stop buying 20k of I-bonds a year - right?
by Scorpion
Wed Dec 14, 2022 4:45 pm
Forum: Personal Investments
Topic: I-bond Gifting - think I screwed up
Replies: 14
Views: 1333

I-bond Gifting - think I screwed up

So I started diligently buying I-bonds in 2017, 10k for me, 10k as gift for my spouse. My spouse has never bought any separately. I now have 60k (six years) plus interest in my account, and the same amount in the gift box. I guess I didn't realize I need to actually "deliver" the bonds to my spouse. And now I see on the wiki that you can't "deliver" more than the 10K a year. So what do I do? Direct one gift to my spouse this year (I guess she will have to make a Treasury Direct account?) and then direct another gift every year? Because I screwed up, I guess this means I will always be five years behind in terms of bonds sitting in the gift box? And is there an issue with each bond being worth more than the initial 10k, o...
by Scorpion
Tue Apr 26, 2022 12:16 pm
Forum: Personal Investments
Topic: Are TIPS right for me? (FIREd)
Replies: 18
Views: 2159

Re: Are TIPS right for me? (FIREd)

vineviz wrote: Tue Apr 26, 2022 10:50 am
That said, I will say that from a theoretical perspective the default position for most investors should be something like this: unless you can articulate a good reason to do something OTHER than invest your bond allocation in TIPS whose duration roughly matches your investment time horizon, that's probably what you should do.

[/quote]

It is indeed comforting to hear that I am at a point where the decision won't make too much of a difference either way. That said, what is the reason for the "long-term" TIPS recommendations specifically? Is it because my investment time horizon referred to above is essentially out to my death, since I have no specific need for the money, and I hopefully have 30+ years until death?
by Scorpion
Tue Apr 26, 2022 9:08 am
Forum: Personal Investments
Topic: Are TIPS right for me? (FIREd)
Replies: 18
Views: 2159

Re: Are TIPS right for me? (FIREd)

Not to be obtuse, but how does one then decide if TIPS are suitable for oneself? I guess I still don't know if I should be moving into TIPS or not, as a long-term portfolio change. I get the sense you are warning that it could be performance chasing right now.
by Scorpion
Mon Apr 25, 2022 11:31 am
Forum: Personal Investments
Topic: Are TIPS right for me? (FIREd)
Replies: 18
Views: 2159

Re: Are TIPS right for me? (FIREd)

Thanks dbr. Pretty sure I saw you state elsewhere that 100% TIPS seems to make sense, but you are nevertheless keeping 50% non-TIPS in case there is some idiosyncratic risk or benefit to nominal bonds that you are not aware of (I'm paraphrasing a bit). I have no problem staying the course on stocks - I guess I just feel I may never have fully "set the course" on bonds like I should have. Are you suggesting it doesn't matter because bond prices are efficient, the breakeven point between TIPS and nominal bonds is the market's estimate of inflation, therefore we should be indifferent? That rationale makes sense to me, but then why bother holding 50-50? At the end of the day, I'd like to pick a bond approach and stick to it.
by Scorpion
Mon Apr 25, 2022 8:28 am
Forum: Personal Investments
Topic: Are TIPS right for me? (FIREd)
Replies: 18
Views: 2159

Are TIPS right for me? (FIREd)

I’m trying to figure out if TIPS are for me, which is something I should have done a long time ago. I retired early in 2017 thanks to the Boglehead philosophy of saving, buying and holding, and I am in my late forties now. My spouse still works at a job she enjoys (I would love it if she would retire), but she doesn’t make very much, and we max out her 403(b). She might work anywhere from 5 to 15 more years. Our expenses are 1.2% to 1.6% of our assets every year. These expenses are fully funded by stock dividends, real estate distributions and I suppose my spouse’s excess salary. I try and hold about 100k in savings and money markets. I held only stocks and private equity real estate investments pretty much the entire time I worked. I only ...
by Scorpion
Fri Apr 22, 2022 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Michigan requiring paper returns for 2021? That's what my accountant wrote.
Replies: 16
Views: 2185

Re: Michigan requiring paper returns for 2021? That's what my accountant wrote.

I found this link about the new law: https://drive.google.com/drive/folders/1mvVSUZLrJvWqNeRcpVpZV4Ye0bEW3A_P?usp=sharing It simply must be that the accountant didn't add that paperfiling was necessary "in this case", e.g. for those who have K-1s reported MI tax previously paid by the passthrough. I read "For 2021 the State of Michigan requires you..." as being a general thing. Also, I've been filing non-resident returns with K-1s via e-file for a long time. As some have already mentioned, it must be that Michigan needs a paper copy of the K-1 in order to confirm how much MI tax has already been paid. Your link said "access denied" for me. A lot of tax software allows you to essentially type the state K-1 into...
by Scorpion
Fri Apr 22, 2022 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Michigan requiring paper returns for 2021? That's what my accountant wrote.
Replies: 16
Views: 2185

Re: Michigan requiring paper returns for 2021? That's what my accountant wrote.

Hi all, I have a trivial amount of Michigan income from a partnership. I got the K-1 today and in the email the accountant wrote: For 2021 the State of Michigan requires you to manually /paper file your 2021 Michigan income tax return. The State of Michigan also requires you to attach a copy of the attached schedule K-1 to your 2021 paper filed tax return. Huh? I cannot find any corroboration/clarification online. It must be some special situation that applies to only some returns with certain features? The only new thing this year is that the partnership paid MI tax on behalf of the partners as per a new michigan law. I assume it's related to this. I can take a credit for the MI paid by the pass-through entity. Maybe paper returns are onl...
by Scorpion
Fri Apr 22, 2022 9:16 am
Forum: Personal Investments
Topic: Why NOT tax loss harvest Int-Term Bonds into Sht-Term Bonds?
Replies: 7
Views: 1177

Re: Why NOT tax loss harvest Int-Term Bonds into Sht-Term Bonds?

Thanks Livesoft and Pablov. I guess part of my point is that it is hard to see why it would even be a good deal to BUY intermediate-term right now even if I only had short-term. The yield differential would not seem to be enough to compensate you for the risk of owning the longer-term bonds. Aren't short-term bonds of the same quality strictly better when the spread on yields is so narrow between them? I guess everything is efficiently priced, so I guess I can't be right on that. Regarding my portfolio, I own huge amounts of VBTLX in tax-advantaged accounts, so I would still have major exposure to VBTLX even if I did this proposed TLH. I did put quite a bit of new money in taxable into Short-Term Investment Grade instead of VBTLX in 2020 an...
by Scorpion
Fri Apr 22, 2022 8:32 am
Forum: Personal Investments
Topic: Why NOT tax loss harvest Int-Term Bonds into Sht-Term Bonds?
Replies: 7
Views: 1177

Why NOT tax loss harvest Int-Term Bonds into Sht-Term Bonds?

What is the argument to NOT go ahead and sell my VBTLX in taxable and buy Vanguard Short-Term Index in taxable? I could harvest a 12K loss, and I would be moving from VBTLX, which has a 2.84% yield, to VBIRX, which has a 2.62% yield. Pretty close. I guess the argument is that interest rates on int-term could start decreasing, as with a recession, and int-term bonds would then make more on total return basis? Feels like that could happen, sure, but it also doesn't seem imminent (but of course who knows). This whole thing reeks of market timing, which I would never do for stocks, but I guess you don't see these weird yield phenomena with stocks where suddenly you aren't being paid for the risk of holding the longer-term, riskier asset. It see...
by Scorpion
Thu Mar 17, 2022 9:15 am
Forum: Personal Investments
Topic: Teen Investing
Replies: 14
Views: 1130

Re: Teen Investing

Elysium wrote: Thu Mar 17, 2022 9:12 am Did you ask him? He may have an opinion, and that can lead to a discussion on the pros/cons of different approaches.
[ quote fixed by admin LadyGeek]

I will ask him, but I suspect he will just ask me my thoughts, so I wanted to be armed with BH thoughts as well.
by Scorpion
Thu Mar 17, 2022 8:49 am
Forum: Personal Investments
Topic: Teen Investing
Replies: 14
Views: 1130

Teen Investing

I opened my 15-year-old an account at Fidelity to get the free $50 for a teen account. I do most investing at Vanguard but have a couple HSAs at Fidelity, so I then heard about the offer. My kid has a substantial 529 balance and intends to work in high school like his older sibling did once he's old enough, so I think he will have just around enough to pay for college at our best state school without loans or aid. Anyway, I gave him the big talk about investing, buy and hold, the differences between stocks and bonds, effect of changes in interest rates, etc. recently, and he is interested in dipping his toe in the market. He has like $1100 in savings, and he wants to put ~$450 into the market and just leave it there for quite a while. Despi...
by Scorpion
Thu Feb 17, 2022 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Citi online saving transfer limits seem very restrictive
Replies: 54
Views: 7518

Re: Citi online saving transfer limits seem very restrictive

Yeah, I guess I should just make the deposit, leave it there long enough to get the deposit bonus, and then close it. My bank (Wells Fargo) will only allow a pull of $5K from the Citi account as of today, the day it linked with Citi. Not sure if that is unusual. It looks like Citi will allow 200k pulls from Wells, so it seems unusual that Wells is so restrictive on a pull. But as long as Vanguard can pull the entire amount, I would assume I am safe from Citi trying to limit me to 15k withdrawals. Maybe I'll consider another online savings account after all this, or perhaps look into what Vanguard money market accounts are paying by then.
by Scorpion
Thu Feb 17, 2022 10:40 am
Forum: Personal Investments
Topic: Why would you pick Vanguard over Fidelity
Replies: 190
Views: 24868

Re: Why would you pick Vanguard over Fidelity

What about the transfer bonuses I always hear about but never look into? Isn't there some sort of remuneration if you switch from Vanguard to Fidelity? about how much is this? Is there an approximate formula based on assets transferred? It seems to me that if OP is going to use Fidelity for new purchases, it is worth moving all the money there if the payment is enough. (To be clear, I am 100% at Vanguard except for a couple of HSAs and a 403(b) at Fidelity).
by Scorpion
Thu Feb 17, 2022 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Citi online saving transfer limits seem very restrictive
Replies: 54
Views: 7518

Re: Citi online saving transfer limits seem very restrictive

I suppose I could at that - good suggestion. I guess I just don't like the idea of what is supposed to be my safe cash being unavailable. What if I want to go buy a new car or something? Can the dealer do an ACH from my citi savings acct? I assume not. So then I guess I would be back to transferring it to my federal money market fund at Vgd via a pull, then perhaps writing a check off that account to the car dealer. I suppose that would work. But I do see a number of people above in this thread mentioning how the 15k/month transfer limit is a hassle, and I am worried about unforeseen events. Unforeseen events is exactly what this emergency fund is supposed to be for, so having it even partially locked up seems concerning.
by Scorpion
Thu Feb 17, 2022 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Citi online saving transfer limits seem very restrictive
Replies: 54
Views: 7518

Re: Citi online saving transfer limits seem very restrictive

Gah - I just opened their Citi Accelerate High Yield Savings Account for a $300 bonus plus a whopping 0.5 APY. I had been keeping my cash for short-term uses in Vanguard Ultra Short Term, but I decided that wasn't conservative enough for cash. But now, as one of the early posters said, I see there will be a transfer limit from out of Citi of 15K a month. I was planning to put 100K in and use ~50k of that for taxes in a couple of months. If it had not been available, I would have been apoplectic. So what to do now? 1. transfer the minimum amount to Citi to get the bonus (30K) and just sit on the rest earning 0.01% in federal money market fund? 2. OR, I guess a way to get around the transfer limits would be to do a pull by Vanguard when I nee...
by Scorpion
Thu Feb 10, 2022 8:58 am
Forum: Personal Investments
Topic: Vanguard Ultra Short versus Online Savings?
Replies: 3
Views: 704

Re: Vanguard Ultra Short versus Online Savings?

I sometimes have to do wires for private equity investments, and I do those wires through Vanguard because I don't pay fees due to Flagship. (Wells Fargo charges fees even though I have the PMA package, and I assume you probably can't even wire from Citi savings). I was thinking that I would sometimes transfer money from Citi to Vanguard, and then wire out from Vanguard to do the wire without fee. But as JoMoney suggests, Vanguard probably has some time frame in which I cannot withdraw what I just transferred in. Have been trying to Google that timing and cannot find it so far. Does anybody happen to know what the time limit is before you can withdraw funds that have been transferred in?
by Scorpion
Thu Feb 10, 2022 7:53 am
Forum: Personal Investments
Topic: Vanguard Ultra Short versus Online Savings?
Replies: 3
Views: 704

Vanguard Ultra Short versus Online Savings?

So when rates dropped through the floor a couple of years ago, I decided to partially move my emergency fund from Vanguard Prime Money Market to Vanguard Ultra Short Bond. Eventually, I had moved my whole emergency fund to Ultra Short. I'm retired and am doing quite well, so a bit of loss in Ultra Short bond is not a big deal, but I have read some posts on here suggesting that Ultra Short is not the right vehicle to use for savings (since price drops are still a risk). (VUSFX is down 0.23% in total return since 12/31/20, per Morningstar). I try and keep between 50k and 100k in emergency funds, which is a small percentage of my portfolio. I know that I could consider I-bonds as my emergency fund, but I value them highly as real bonds and so ...
by Scorpion
Thu Jan 13, 2022 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken 2019 and forward
Replies: 1061
Views: 114270

Re: Quicken 2019 and forward

Hi all - I'm the original poster on this thread - glad to see it is going strong! Quick question, as I assume those on this thread would be savvy on this. I am thinking of finally going ahead with the Vanguard account transition, but the fears of something going wrong in Quicken have held me back. I understand that fundamentally we shouldn't do the "add/remove" shares thing that the transition will download as, and instead should do "transfer shares out of account." As background, I have both mutual fund and brokerage accounts at Vanguard, and I have used the brokerage account for ETFs for many years. I did google within Bogleheads about quicken and the vanguard transition, but I couldn't find more detail on Quicken than...
by Scorpion
Tue Nov 30, 2021 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Wiring money from Vanguard?
Replies: 14
Views: 3497

Re: Wiring money from Vanguard?

I'm resurrecting this thread to provide some info and to ask a question. I have been able to easily wire from Vanguard a number of times, as long as it is a next-day wire, which probably doesn't work for home closings. I call 877-662-7447 and say wire transfer. But, I am experiencing HUGE hold times lately. Had 1.5 hours in early November, and I am going on 43 mins right now and still waiting. Does anyone know a magic number to call to facilitate these wires? They MUST be done on the phone - no way on the website. Is there a way to get Vanguard to call you back so I don't have to hold? I am a Flagship member, but there's no specific person listed on my account like there used to be, and I think when I called Flagship earlier this year, I g...
by Scorpion
Tue Nov 30, 2021 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Wiring money from Vanguard?
Replies: 14
Views: 3497

Re: Wiring money from Vanguard?

I'm resurrecting this thread to provide some info and to ask a question. I have been able to easily wire from Vanguard a number of times, as long as it is a next-day wire, which probably doesn't work for home closings. I call 877-662-7447 and say wire transfer. But, I am experiencing HUGE hold times lately. Had 1.5 hours in early November, and I am going on 43 mins right now and still waiting. Does anyone know a magic number to call to facilitate these wires? They MUST be done on the phone - no way on the website. Is there a way to get Vanguard to call you back so I don't have to hold? I am a Flagship member, but there's no specific person listed on my account like there used to be, and I think when I called Flagship earlier this year, I go...
by Scorpion
Mon Nov 01, 2021 9:38 am
Forum: Investing - Theory, News & General
Topic: Vanguard.com outage?
Replies: 12
Views: 1406

Re: Vanguard.com outage?

Hope this outage does not have widespread ramifications - I've just been on hold for an hour and 15 minutes with Vanguard simply trying to send a wire - I just gave up and hung up when I saw this thread. I don't think I've ever been on hold for more than 15 minutes with Vanguard, and I've been with them for over twenty years. Thankfully my wire doesn't need to be sent for a few days, but it would stink if I needed it today. More concerningly, the automated system also asked me if I was calling to discuss the "paperwork they had recently received from me." I have sent them no paperwork, so now I'm a bit worried.
by Scorpion
Thu Oct 07, 2021 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term care insurance, investing or nothing for my father?
Replies: 11
Views: 930

Re: Long-term care insurance, investing or nothing for my father?

I'm pretty sure his pension is adjusted for inflation. Based on the Genworth chart that was linked, it looks like it would cost him about 5K per year for in-home care, 5K for assisted living, and 8K for a private room at a nursing home facility. So, based on that and the advice in this thread, sounds like he doesn't need to mess with long-term care insurance. I really like the idea of the Vanguard target retirement fund for him - I didn't know that there was a target retirement fund for people actually in retirement, although it makes sense. I think that is what I'm going to recommend to him, although since one of you suggested like a 50K emergency fund, I'm not sure how much he would realistically have to invest in any event. Thanks for al...
by Scorpion
Thu Oct 07, 2021 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Long-term care insurance, investing or nothing for my father?
Replies: 11
Views: 930

Long-term care insurance, investing or nothing for my father?

My father is in his mid-70s, diabetic, very overweight but otherwise in decent health. He has a teacher's pension and a small inheritance from his parents. I think his pension is about $5k a month. He told me he thinks all his assets total about 250k or so. EDIT - VERY FEW OF THESE ASSETS ARE INVESTABLE ASSETS. MAYBE 50K MAX. HE HAS A LOT OF VALUABLE PERSONAL PROPERTY LIKE ANTIQUES AND THE LIKE THAT I DON'T THINK HE WOULD PART WITH BEFORE HE HAD TO, PLUS HIS HOUSE. HE IS DIVORCED, DON'T THINK HE GETS SOCIAL SECURITY. He has never invested in his life (although he is aware that he sort of did through what the pension fund did on his behalf). He seems to think he will suddenly die someday such that he doesn't need to worry about having money ...
by Scorpion
Mon May 17, 2021 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: HSA/HDHP choice - Lose now to gain later?
Replies: 11
Views: 1549

Re: HSA/HDHP choice - Lose now to gain later?

I pay all medical expenses out of pocket and never touch the HSA amounts. But keep you receipts in a file in case you ever need to get to that money down the road. I look at the HSA as the very best of tax - advantaged vehicles in existence. Assuming you have decent investment options through your employer's plan. Yeah, was thinking about the potential advantages when I had a chance later. I guess because of the tax-deferred growth and the 401(k) treatment as the worst-case downside once age 65? We would certainly be able to pay the expenses with cash without issue. Would you plan to hold the HSA your entire life and never use it if you realistically could? Any thoughts on my other questions, particularly #4? I am also curious how rare HDH...
by Scorpion
Mon May 17, 2021 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: HSA/HDHP choice - Lose now to gain later?
Replies: 11
Views: 1549

Re: HSA/HDHP choice - Lose now to gain later?

Thanks for the responses, especially Duzz78's great detail. 1. Clarification on Co-Insurance - thanks for asking that. It is actually 100% co-insurance as long as we stay in network, which we always have - all doctor visits and procedures, all Rx. That's why I was considering it maxed out when we hit the deductible - please let me know if you think I am missing something on that. You are right that the OOP max is 8K. 2. When we transition the HDHP plan midyear, the insurer will total up all our deductibles and OOP costs under the PPO plan prior to 6/30. Those are then credited towards our new HDHP deductible for the rest of the year. That's what the $1891 of deductible credit is. So I would have only a little over $2K of "real" fa...
by Scorpion
Sat May 15, 2021 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: HSA/HDHP choice - Lose now to gain later?
Replies: 11
Views: 1549

Re: HSA/HDHP choice - Lose now to gain later?

Thanks to you both. The bogleheads ssht was super helpful - was not aware that existed. I think the HDHP is very worth doing after completing that analysis, but the FSA thing is a concern of mine as well. Our FSA is also with spouse's employer. Employer says they will set up a limited purpose FSA for dental and vision as you see in the literature online to avoid the simultaneous FSA problem. I guess they will roll any FSA funds existing on 6/30 to the limited purpose FSA, making us eligible for the HSA for the rest of the year. I hope they know what they are doing though - this link (https://employee-resources.lumity.com/help/switching-from-a-health-fsa-to-an-hsa) at the bottom says employers can roll FSA funds to the limited purpose FSA ov...
by Scorpion
Fri May 14, 2021 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: HSA/HDHP choice - Lose now to gain later?
Replies: 11
Views: 1549

HSA/HDHP choice - Lose now to gain later?

Health insurance renewal time, and due to the nature of spouse's job, renewal is effective July 1. They are introducing a new HDHP w/ HSA option, and I need to make my choice vs. the existing PPO plan. Being a good Quicken user and using the max flexible spending account with excel tracking every year, I have an excellent handle on my family's recent medical expenses. But the choice still isn't clear. We would definitely hit the max family deductible of $4000 on the HDHP. Max family deductible on the PPO is $1000, but the Rx and doctor and PT copays add up faster than you would think if you don’t track them. There are no copays or expenses of any kind after you hit $4000 on the HDHP. Annual cost estimates, 2022 and fwd: PPO: 2500 or so expe...
by Scorpion
Wed Mar 03, 2021 4:00 pm
Forum: Personal Investments
Topic: Private Equity Real Estate - Sell or Roll decision and Taxes
Replies: 5
Views: 539

Re: Private Equity Real Estate - Sell or Roll decision and Taxes

Thanks for the responses so far. 1. I don't think you can do a 1031 exchange with just a limited partnership interest. My understanding was that all limited partners have to agree, so it just doesn't happen. 2. Even though I have "won the game," I guess I still enjoy maximizing after tax risk-adjusted returns. Pre-retirement, I was 100% equities and real estate, so I'm used to risk. I didn't add 30% bonds until 9 months before retirement, and I did so reluctantly. 3. I haven't lost money on a development deal yet, despite having invested in them since 2011. So I am definitely spoiled and try not to get greedy. Worst return was 10% IRR, from a sale last year. I guess I am not convinced that the income fund is really that much less ...
by Scorpion
Wed Mar 03, 2021 10:52 am
Forum: Personal Investments
Topic: Private Equity Real Estate - Sell or Roll decision and Taxes
Replies: 5
Views: 539

Private Equity Real Estate - Sell or Roll decision and Taxes

I have a decision to make about some private equity real estate investments. I invest in ground-up real estate developments, but at the end of 3 years or so when the projects are stabilized, they go into an “Income Fund.” This means the developer is essentially recapitalizing the projects by using current appraisals to assess stabilized fair market value, bringing new investors in, etc., with a lot of detail I won’t get into. What it means for me essentially is that for each project I own, I can either (a) roll my investment into the Income Fund, getting shares of the Income Fund in exchange at fair market value of my investments, and I then defer my substantial taxable gain until the Income Fund sells the assets in 8 years or so or (b) sel...
by Scorpion
Thu Feb 18, 2021 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Foreign Capital Gains and the Foreign Tax Credit
Replies: 3
Views: 367

Re: Foreign Capital Gains and the Foreign Tax Credit

After doing further research, I am pretty sure that everywhere that I said I assumed above, I was correct. A foreign tax has to be imposed on you by a foreign entity - paying capital gains tax on the sale of shares of US-based international mutual fund is an example of the US imposing a tax on you, not a foreign entity. That must mean that any capital gains taxes imposed by foreign jurisdictions (like Italy or Spain for example) must be contained within foreign tax paid.
by Scorpion
Thu Feb 18, 2021 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Capital Gains and the Foreign Tax Credit
Replies: 3
Views: 367

Foreign Capital Gains and the Foreign Tax Credit

If investing only in US mutual funds that hold foreign stocks, will we ever see a "foreign capital gain" for purposes of the foreign tax credit? We get statements from Vanguard, et. al. indicating "Foreign Tax Paid." Although that seems to relate solely to dividends, I assume any foreign capital gains are also somehow in there already? I also assume that if I sell 100 shares of say, Vgd Total Intl, creating let's say a $1,000 cap gain, I assume that cap gain is NOT a "foreign cap gain" for foreign tax credit purposes? I had a substantial sale of Vanguard MSCI EAFE ETF in early 2019 (that resulted in decent capital gain), and I had no foreign tax paid reported to me, since I sold before the first dividend date o...
by Scorpion
Tue Feb 16, 2021 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Cedar Roof - Insurance Decision when Old but Good Condition
Replies: 9
Views: 1325

Re: Cedar Roof - Insurance Decision when Old but Good Condition

Thanks everyone. I figured the advice would be to pay for replacement cost insurance, but it's nice to see no one said to go the other way. Hoping to move in like 8 years, and hoping the roof can last until then. Even if the new buyer wants a credit for the roof or something, it still wouldn't be my hassle to mess with a new installation, etc.
by Scorpion
Mon Feb 15, 2021 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Cedar Roof - Insurance Decision when Old but Good Condition
Replies: 9
Views: 1325

Re: Cedar Roof - Insurance Decision when Old but Good Condition

Should I have mentioned I am in the Midwest. I understand these roofs are disfavored or even illegal out west, but not so around here. They are however, expensive to install and potentially maintain, but have a long useful life.
by Scorpion
Mon Feb 15, 2021 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Cedar Roof - Insurance Decision when Old but Good Condition
Replies: 9
Views: 1325

Cedar Roof - Insurance Decision when Old but Good Condition

My house was built in 1992 and is about 2900 square feet. We have a nice cedar shake roof with the thicker shingles, and it is original with the house. We maintain it by using a cedar preservation roof company that comes every 5 or 6 years and applies treatment to the roof, replaces broken shingles, etc. Although a lot of our neighbors have chosen to remove their own cedar roofs and replace them with asphalt, we have seen no reason to do so since our roof has given us no trouble. However, home insurance companies are starting to balk at the age of the roof. I can still find insurance companies who will write the insurance for a good overall price, but I now have a decision to make. I can either accept actual cash value coverage for the roof...
by Scorpion
Thu Dec 31, 2020 11:09 am
Forum: Personal Consumer Issues
Topic: Alaska Flight costs (maybe flights generally)
Replies: 27
Views: 2930

Re: Alaska Flight costs (maybe flights generally)

[/quote] I have a friend in Juneau. I emailed her and asked if she had heard anything about the tourism industry up there. First of all, they are being hit hard with Covid. There is just too much space and a lack of medical care. She didn't mention the seasonal worker issue. For them, right now, it is the fact that Alaska tourism's foundation is the cruise business and the very large numbers of tourists it brings to Alaska , including Anchorage. Businesses are not set up for a trickle of customers and they are not expecting cruising to return to anywhere near pre-2020 levels for 5-10 years, if ever. My friend says that if you plan on hiking that's ok. Anything requiring tour companies, is very iffy, just from a business standpoint. They may...
by Scorpion
Sun Dec 27, 2020 10:20 am
Forum: Personal Consumer Issues
Topic: Alaska Flight costs (maybe flights generally)
Replies: 27
Views: 2930

Re: Alaska Flight costs (maybe flights generally)

whodidntante wrote: Sat Dec 26, 2020 10:07 pm Alaska Air has had two big promos recently. 30% off flights and buy one get one free. https://frequentmiler.com/alaska-airlin ... uCkVGRDrRQ
That would have been great, but sadly we are going in late June, and that offer is only eligible through May 15th. Our current best flight for cost is Delta, but maybe the available flights will change in the next few months.
by Scorpion
Sun Dec 27, 2020 10:18 am
Forum: Personal Consumer Issues
Topic: Alaska Flight costs (maybe flights generally)
Replies: 27
Views: 2930

Re: Alaska Flight costs (maybe flights generally)

Thanks for all these thoughts so far - they have been very illuminating. We don't travel often, and DW and I usually like to get things squared away early on, hence the early booking that doesn't actually seem that early by our standards. To answer an earlier question, we are flying in and out of Anchorage, with whatever layovers are needed to get there from USA midwest.
by Scorpion
Sat Dec 26, 2020 5:06 pm
Forum: Personal Consumer Issues
Topic: Alaska Flight costs (maybe flights generally)
Replies: 27
Views: 2930

Re: Alaska Flight costs (maybe flights generally)

Aside from the flights I would be much more concerned about what you will be able to do when you get up there. The problem is that most of the tourist related jobs are seasonal and in some areas they may bring in workers from other areas or even other countries on temporary worker visas and that program has been in tourmal. Even before the pandemic when I was in Wyoming and South Dakota two years ago I saw a sign in a restaurant where they were explaining(with a bit of an angry rant) that they would be open limited hours and days because they could not get the legal international temporary workers that they had been depending on in prior years. Getting the seasonal workers this year will be even more difficult because they need to be linin...
by Scorpion
Sat Dec 26, 2020 1:02 pm
Forum: Personal Consumer Issues
Topic: Alaska Flight costs (maybe flights generally)
Replies: 27
Views: 2930

Alaska Flight costs (maybe flights generally)

We don't take vacations very often, but we had planned a major family trip to Alaska for summer 2020. Needless to say, it was cancelled. We are rescheduling for 2021, but I was shocked to discover that the flight for a family of 4 will cost 31% more than last year's flight. We are booking at about the same time as last year - about 6 months out. 1. I would have thought that, given fuel prices now vs. late 2019, flights should be a lot cheaper (although I have heard before that airlines buy hedges for fuel costs such that maybe it doesn't make a difference). 2. I might have thought that reduced demands for flights = cheaper prices, but reduced demand might also mean they need to charge more to the reduced number of travelers to even justify ...
by Scorpion
Fri Dec 18, 2020 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: College-Age Kids getting student loans when parent income too high
Replies: 133
Views: 9837

Re: College-Age Kids getting student loans when parent income too high

Hi OP. I’m not advocating anything by these questions, but curious to understand the situation a little better, and maybe help further your thought process 1. Do you feel like a state school or a private school is a better fit for your son? 2. Are there situations where you could see yourself agreeing to cosigning for student loan debt ? 3. What are your son’s preferences? 1. state 2. highly unlikely - seems like it would be smarter to loan to him myself and reduce interest rate and hassle. And since there are a myriad of problems with that, state school seems fine. 3. he is totally uninterested in the process as a high school junior right now. I actually think he will be fine with state school, but I think he has a decent chance of being ...
by Scorpion
Fri Dec 18, 2020 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: College-Age Kids getting student loans when parent income too high
Replies: 133
Views: 9837

Re: College-Age Kids getting student loans when parent income too high

After doing some additional analysis, it appears that, given continued static contributions by us to the 529 through the duration of college - which now that I think about it might be better structured as college payments during college years in order to be eligible for the education credit - he will only fall about $10k total short at the best state school over four years based on currently available info. Presumably he could fund that shortfall with his own income. And that's assuming he doesn't get merit based aid, which he very well might - especially if he goes to a lesser state school, which is what I did. So, maybe in the end this all just argues for the idea that he can't go to a non-state school or private school, IMHO. Neither I n...
by Scorpion
Fri Dec 18, 2020 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: College-Age Kids getting student loans when parent income too high
Replies: 133
Views: 9837

Re: College-Age Kids getting student loans when parent income too high

I don't quite get the "skin in the game" comments folks always make ... I agree. But then again, I also don't understand the general consensus that parents need to figure out where their kids go to school, what they major in, and how to pay for it. Mine had zero involvement. Maybe there is a happy medium between those two extremes. Exactly - if I am going to pay more than I had always planned to pay, I suddenly feel like I have to micromanage the entire college experience. What are they spending their free money on, what is their major, how are their grades, etc. I wanted to cease being a helicopter parent upon college graduation, tell them this is the money we have for you, we are here for advice and may offer it occasionally, b...
by Scorpion
Fri Dec 18, 2020 11:36 am
Forum: Personal Finance (Not Investing)
Topic: College-Age Kids getting student loans when parent income too high
Replies: 133
Views: 9837

Re: College-Age Kids getting student loans when parent income too high

Broken Man 1999 wrote: Fri Dec 18, 2020 11:23 am Scorpion wrote, "....We have the money to pay for their whole college...."

You have answered your question, no?

Are you worried about your kids not applying themselves? ...
That's part of it, yes. I paid for my college through merit-based scholarship - parents did not contribute. My wife's parents paid for part, and she took out loans for the other part. They had a successful business and could have paid for the whole thing. I paid them off when my wife and I got married.

While it is not true for all kids, some kids will be more engaged with skin in the game. Also, some kids might be more motivated to choose a major with an employable future with skin in the game. Etc., etc.
by Scorpion
Fri Dec 18, 2020 11:14 am
Forum: Personal Finance (Not Investing)
Topic: College-Age Kids getting student loans when parent income too high
Replies: 133
Views: 9837

Re: College-Age Kids getting student loans when parent income too high

Are you guys sure about the loan limits? See the chart on the federal government's own website: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized It shows a separate subsidized and unsubsidized loan limit. I guess what you are saying is, even if you don't get subsidized, you still get to use the money they allocate towards subsidized on the chart as part of your unsubsidized. This would yield 5500, 6500, 7500, 7500 = 27,000. Surely I'm not the only person who thought their kids should pay half of their college? Are people doing intrafamily loans then? I guess I can search on this site on that particular issue and re-post if no one addresses that part. @manatee2005 - I was expecting to pay for my own old folks' home -...
by Scorpion
Fri Dec 18, 2020 10:50 am
Forum: Personal Finance (Not Investing)
Topic: College-Age Kids getting student loans when parent income too high
Replies: 133
Views: 9837

College-Age Kids getting student loans when parent income too high

The recent thread about the FAFSA caused me to re-examine a commonly held assumption that now has me panicking a little bit. We have saved money for our kids for college such that they would have enough to pay for 50% of college through the 529, and they would borrow to pay the other half (529 is on-track for about 65% of cost of best state school at moment - obviously they could use whole amount). We have the money to pay for their whole college, but we believe they should take loans and pay back the other half so that they have skin in the game. Perhaps we might contribute more after they graduate (i.e., help them re-pay), but we want this to be the starting point. The recent FAFSA thread plus my own research now seems to be indicating th...
by Scorpion
Fri Dec 18, 2020 9:04 am
Forum: Personal Investments
Topic: VG is nagging about transitioning account
Replies: 200
Views: 21835

Re: VG is nagging about transitioning account

I already have both a Brokerage account at Vanguard and a mutual fund account. I get separate tax statements for both already. Does that mean I don't need to worry about the tax concern mentioned in this thread in terms of multiple tax statements depending on when I transition, or does it still matter? I haven't transitioned yet because:

(a) I perceive no benefit;
(b) I am worried it will mess up Quicken;
(c) and I now have the new worries about tax statements and more backdoor Roth hassle.

Assuming it is inevitable that I must transition someday, I would love any thoughts on the tax statement question.