Search found 6967 matches

by Wagnerjb
Wed Dec 13, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: Accelerating deductions into 2017
Replies: 4
Views: 439

Re: Accelerating deductions into 2017

3) Charitable contributions - Here's one where you can be really creative. Its very easy to give money away this year that you had planned to give away next year or even the year after. What is even better here is a donor-advised fund, since you can give away a lot of years worth of donations witho...
by Wagnerjb
Wed Dec 13, 2017 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale and IRAs
Replies: 3
Views: 161

Re: Wash Sale and IRAs

If you sell "at a loss" in your IRA you don't have a deductible loss for tax purposes. Therefore you cannot have a wash sale.

Since you don't have a wash sale, the holding period section doesn't apply to your situation.

Best wishes.
by Wagnerjb
Tue Dec 12, 2017 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Hedging RSUs
Replies: 6
Views: 414

Re: Hedging RSUs

She has already left the former company and the shares have still not vested? Are you sure? I would be surprised to see that.
by Wagnerjb
Sat Dec 09, 2017 9:54 am
Forum: Investing - Theory, News & General
Topic: 2000-09 worst decade for large cap stocks in 109 years
Replies: 44
Views: 3046

Re: 2000-09 worst decade for large cap stocks in 109 years

Diversification paid off: Time diversification sure did pay off. The decade prior to the worst decade was the second best. The eight years since the worst decade have yielded (by my rough calculations) around 13.5% annually. There aren't three decades in a row with sub-par returns, and most investo...
by Wagnerjb
Fri Dec 01, 2017 6:43 pm
Forum: Investing - Theory, News & General
Topic: BH philosophy on restricted stock units and employee stock purchase program?
Replies: 27
Views: 1311

Re: BH philosophy on restricted stock units and employee stock purchase program?

I sold my RSU's as soon as they vested each year and used to proceeds to invest in passive low-cost well-diversified investments. Using options to bet against your employer stock is politically very risky, and might even be forbidden by some companies. I would avoid this. I did not have access to an...
by Wagnerjb
Thu Nov 30, 2017 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Please help with this cost basis nightmare!
Replies: 22
Views: 1732

Re: Please help with this cost basis nightmare!

Re: the tax hump...this was incredibly interesting to learn about. To put it somewhat correct and simplified, there is a huge marginal tax rate introduced (up to 40-50%) as capital gains income exceeds the top of the 15% bracket because each additional dollar generates $1.85 in additional taxable i...
by Wagnerjb
Wed Nov 29, 2017 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Please help with this cost basis nightmare!
Replies: 22
Views: 1732

Re: Please help with this cost basis nightmare!

I agree with your strategy of first selling the shares where you can fairly easily determine the cost basis. And I agree with "cas" that it is very important to indicate to the broker that you want to use "specific identification" of the tax lots when selling. I agree that the screen shot seems to i...
by Wagnerjb
Tue Nov 28, 2017 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - SARs and RSUs
Replies: 5
Views: 287

Re: Asset Allocation - SARs and RSUs

I counted all four categories in my AA. By the time that I started getting stock options and RSU's, I had been with the company for ~20 years and it was clear that I would stay until retirement....so the risk of not vesting was not great. If that risk is higher for you, then maybe you should conside...
by Wagnerjb
Mon Nov 27, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Limiting Income to <$250K for tax purposes
Replies: 20
Views: 2868

Re: Limiting Income to <$250K for tax purposes

Yes, I think this is a good use of an NQDC plan. With the caveats (stability of employer, likelihood of you long-term employment there) that you say you already understand I agree with this. In your situation - with the potential to face a different tax structure in 2018 - I would wait as long as p...
by Wagnerjb
Fri Nov 24, 2017 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Question - Deferred Compensation Plan
Replies: 6
Views: 943

Re: Question - Deferred Compensation Plan

the other thing that having a NQDC plan does is it almost eliminates low tax space in the years it pays. If you didn't do the NQDC plan, you could spend taxable, and convert pretax to roth in those 5 years... Just something to think about. I am not sure I agree that converting to Roth is a superior...
by Wagnerjb
Thu Nov 23, 2017 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Question - Deferred Compensation Plan
Replies: 6
Views: 943

Re: Question - Deferred Compensation Plan

Your thought process regarding tax issues seems sound. However, you haven't addressed a few other very important issues: 1) How close to retirement are you? I am a fan of these Deferred Compensation plans, but only when reasonably close to retirement. Otherwise, the risks of leaving your employer be...
by Wagnerjb
Wed Nov 15, 2017 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Sobering article for my 25 year old self
Replies: 57
Views: 6889

Re: Sobering article for my 25 year old self

This article is one of the most compelling arguments for saving as much as possible I have found. Hopefully it will help some folks avoid getting into their 50s and suddenly realizing they have little hope of making it to financial independence. The good news in this article is if you save >50% inv...
by Wagnerjb
Tue Nov 14, 2017 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell NSOs early?
Replies: 1
Views: 157

Re: Should I sell NSOs early?

Welcome to the forum. Your NSO options represent less than 10% of your net worth, so at first blush I see no pressing need to exercise early. Furthermore, they have 7 and 8 years until expiration, so you have plenty of time. I vote that you sit tight. If it is driving you crazy, then exercise a frac...
by Wagnerjb
Thu Nov 09, 2017 10:22 am
Forum: Investing - Help with Personal Investments
Topic: When to use a non-qualified deferred compensation plan
Replies: 9
Views: 660

Re: When to use a non-qualified deferred compensation plan

I had a similar deferred compensation scenario (though my company is a true megacorp, so risk of loss is pretty low). I retired early a couple of years ago and I’m now spreading out the deferred compensation over 12 years as my main income. Works out well for me - lower tax bracket than before. I p...
by Wagnerjb
Tue Oct 31, 2017 7:38 am
Forum: Investing - Help with Personal Investments
Topic: Risk with just ONE Fund Family for Retirement
Replies: 10
Views: 1051

Re: Risk with just ONE Fund Family for Retirement

delamer wrote:
Mon Oct 30, 2017 9:45 pm
Those are both legitimate concerns. We have most of our assets at Vanguard, but a good portion at two other custodians also.
Same here.
by Wagnerjb
Thu Oct 26, 2017 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)
Replies: 65
Views: 8330

Re: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)

Can you say more about how the Nonqualified Deferred Compensation helps with AMT? By deferring income into the Nonqualified plan, you can lower your taxable income below the threshold for AMT. That is simply another form of tax deferral as well as tax arbitrage. Presumably, you are reducing your cu...
by Wagnerjb
Fri Oct 20, 2017 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)
Replies: 65
Views: 8330

Re: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)

Doesn’t overpaying state estimated tax come back to bite you the next year? It doesn't if you overpay in a non-AMT year and get the refund in an AMT year. Oddly almost no "how-to-deal-with-the-AMT" articles mention this; editors must believe that no one sees it coming until they're actually in a ye...
by Wagnerjb
Fri Oct 20, 2017 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)
Replies: 65
Views: 8330

Re: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)

I live in Texas, with no state income tax. But if I lived in a state with income tax, I would seriously consider bunching my tax payments too. One year you can "overpay" your state taxes using an estimated payment. This results in a higher deduction. The following year you have income from the stat...
by Wagnerjb
Thu Oct 19, 2017 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)
Replies: 65
Views: 8330

Re: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)

Are you eligible for an executive deferred compensation plan at work (typically reserved for upper management)? If so, that is a great tool for tax optimization. Otherwise, the tools I use are: a) Property tax payments. You can bunch two year's worth of payments into one tax year. This works well if...
by Wagnerjb
Wed Oct 04, 2017 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Are you investing in Emerging Market small caps?
Replies: 25
Views: 1806

Re: Are you investing in Emerging Market small caps?

I find Swedroe's (?) idea of increasing risk within equities (more small, value, emerging) while keeping total equity AA limited to maintain expected return while minimizing tail risk persuasive. I like that idea a lot too, it really resonates with me. Did Swedroe write on this? If you've got a ref...
by Wagnerjb
Fri Sep 29, 2017 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Question: Why do people put/keep millions of dollars in investment accounts?
Replies: 66
Views: 8638

Re: Question: Why do people put/keep millions of dollars in investment accounts?

Why do people put so much money in investments if it is like gambling? If you feel the stock market is like gambling, I encourage you not to invest in equities. You are not cut out for equity investing. Maybe you should stick to investing in assets that don't ever decline, like real estate. :annoyed
by Wagnerjb
Wed Sep 20, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: Income from Uncorrelated Commodities
Replies: 26
Views: 1147

Re: Income from Uncorrelated Commodities

Have you asked yourself, "If it was this easy to earn 6-7% with little apparent risk, why isn't everybody doing it?"
by Wagnerjb
Sat Sep 09, 2017 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Security
Replies: 66
Views: 6971

Re: Fidelity Security

With Fidelity you type the 6 digit code into a separate web page after putting in your password. Okay, but just to confirm (as I'm not sure a Fidelity rep would necessarily know or share): Symantec doesn't know your Fidelity password, right? I have been using the Symantec app for at least a year no...
by Wagnerjb
Tue Sep 05, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: 401k options for a brand new investor
Replies: 8
Views: 342

Re: 401k options for a brand new investor

With no match, your daughter should first save $5500 in an IRA. In that IRA she can choose low-cost passive funds to complement the limited lineup of decent funds in her 401k. In her 401k I would start with the Total Stock Market index fund. Depending on her asset allocation and the relative amounts...
by Wagnerjb
Mon Sep 04, 2017 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Dealing With Inherited Investments
Replies: 16
Views: 2173

Re: Dealing With Inherited Investments

Why are you not planning to liquidate the BSHPRA? Because I don't know how -- It doesn't have a price. Perhaps it is completely illiquid or perhaps there is a big penalty. I'm pretty sure there is a way, but without investigating I don't know if that is the wisest thing to do. So, no plan -- yet. I...
by Wagnerjb
Mon Sep 04, 2017 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Top Hat vs taxable dilemma
Replies: 10
Views: 1318

Re: Top Hat vs taxable dilemma

It appears this Top Hat may be a good plan for some, just not the way I had it set up. I guess I'll stop further contributions (gotta still pay for this year til the end, though) and invest the post-tax money (almost 45% less :( ) in a taxable account. The top hat plan at my company was also very r...
by Wagnerjb
Fri Aug 25, 2017 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Obamacare even cheaper for millionaire early retirees
Replies: 22
Views: 7470

Re: Obamacare even cheaper for millionaire early retirees

I am currently controlling my income to arrive at the 138%-150% of poverty level to obtain both the subsidies and the silver plan low ded/out of pocket. This means no SS, minimum income from pension, dividends and taxable interest at low amounts... It appears we will only need the coverage for abou...
by Wagnerjb
Wed Aug 23, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Company Stock Strategy vs. Student Loans
Replies: 6
Views: 498

Re: Company Stock Strategy vs. Student Loans

I would sell the vests RSUs immediately and pay down the student loans, effectively earning a guaranteed 6.9% rate of return. I am comfortable with holding the options, as they have a valuable time value that isn't present in RSUs.

Best wishes.
by Wagnerjb
Tue Aug 22, 2017 7:32 am
Forum: Personal Finance (Not Investing)
Topic: Schedule K-1 from trust and AMT impact
Replies: 1
Views: 237

Re: Schedule K-1 from trust and AMT impact

In your situation, I would first check to see what happens to my tax situation when I take a $3,000 capital loss (from your mother's estate) and reduce my taxable income. If that frees you from AMT, you may prefer to use the capital losses in that manner. Otherwise, I see nothing wrong with your str...
by Wagnerjb
Mon Aug 14, 2017 8:03 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Hazards Of Individual Stocks
Replies: 3
Views: 1289

Re: Larry Swedroe: Hazards Of Individual Stocks

I first learned this concept in the small value asset class, where the performance of the whole class is due to the performance of a few huge winners that no one can reliably predict in advance. Dave I think this concept (of huge winners) is pretty much confined to the small cap sector. A group of ...
by Wagnerjb
Wed Jul 26, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: What is the portfolio role of a leveraged bond fund like PONDX?
Replies: 55
Views: 3522

Re: What is the portfolio role of a leveraged bond fund like PONDX?

There is lots of crap out there that doesn't belong in a disciplined investors portfolio. Those investments are sold to people who are gullible or who have psychological issues causing them to want something unusual. Just say no. With an expense ratio of 0.79%, this fund serves to remove assets from...
by Wagnerjb
Sun Jul 23, 2017 11:56 pm
Forum: Investing - Help with Personal Investments
Topic: Stock Options and NQDC strategies
Replies: 8
Views: 534

Re: Stock Options and NQDC strategies

I'm feeling a bit anxious because my vested stock options are increasingly becoming a higher percentage of my NW, so while I don't want to be too concentrated in the NQDC accounts, I think it's a better alternative to diversify. A sensible risk management strategy is to set a limit for how much of ...
by Wagnerjb
Sun Jul 23, 2017 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Stock Options and NQDC strategies
Replies: 8
Views: 534

Re: Stock Options and NQDC strategies

I used the same strategy with my stock options and NQDC plan. Mike has given you some sensible thoughts on use of the NQDC plan. You don't want to contribute too much early in your career, you don't want to have too much of your nest egg in the NQDC plan, and you want to get it out quickly after ret...
by Wagnerjb
Mon Jul 03, 2017 11:35 am
Forum: Investing - Help with Personal Investments
Topic: Vested NQ Stock Options - Cash out or sit tight?
Replies: 7
Views: 458

Re: Vested NQ Stock Options - Cash out or sit tight?

Marshall: it sounds like you have a very well-thought out plan, and I agree with it. You have considered the time value remaining, how the option value impacts your diversification, taxes and more.

Well done.
by Wagnerjb
Fri Jun 30, 2017 8:59 am
Forum: Investing - Theory, News & General
Topic: Thoughts about tilting away from the sector you work in?
Replies: 32
Views: 2963

Re: Thoughts about tilting away from the sector you work in?

This is something that may be theoretically justified but is pretty hard to accomplish. In theory, accomplishing this would involve things like (in order of most to least reasonable) 3. Have a passive, buy and hold individual stock portfolio of stocks that aren't in the sector of employment Option ...
by Wagnerjb
Mon Jun 26, 2017 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Looking into selling a structured settlement and need some advice
Replies: 66
Views: 4805

Re: Looking into selling a structured settlement and need some advice

Here is what I would do. I would keep the structured settlement and live off of it. That's my GUARANTEED cash flow that I can use to eat for the rest of my life. Next, I would work hard in my day job and save money. I don't need that salary to eat, so I can invest all that "extra" money to buy real...
by Wagnerjb
Tue Jun 06, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: When a company spins off part of itself, do you keep the new company stock?
Replies: 17
Views: 1109

Re: When a company spins off part of itself, do you keep the new company stock?

I have received spin-offs over the years in my individual stock portfolio. In general, I look to dispose of those new shares. However, if the new holding is large and has a significant capital gain (It will have the same % gain as in the parent company), then I won't automatically sell. In that case...
by Wagnerjb
Mon Jun 05, 2017 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Mortgages for seniors
Replies: 8
Views: 1067

Re: Mortgages for seniors

I was retired and got a mortgage in 2012. I have no idea what criteria they used but I would think having assets to cover the mortgage made it a slam dunk for the bank. This wasn't true in my case. I took out a mortgage on a new build in 2014 when I was working. I retired in 2015, and last year I r...
by Wagnerjb
Sun May 28, 2017 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Unwinding a maturing UTMA to pay least taxes
Replies: 18
Views: 1501

Re: Unwinding a maturing UTMA to pay least taxes

? If son is age of majority, why is there a "kiddie tax" ? or are you just saying that as a young adult he has a possible tax liability? Perhaps still a dependent due to student status, etc. But it does raise the question: can the son wait a couple of years until he is limited not by the very low k...
by Wagnerjb
Tue May 23, 2017 11:39 pm
Forum: Investing - Theory, News & General
Topic: Are all markets efficient?
Replies: 28
Views: 2089

Re: Are all markets efficient?

whodidntante wrote:Small, value and other factors are not sufficient to refute the EMH. If you could reliably train stock pickers to beat the market by acting on information in 10ks then you will have disproven the EMH.
Well said.
by Wagnerjb
Thu May 18, 2017 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Question for you high net worth individuals... [real estate investments]
Replies: 82
Views: 12257

Re: Question for you high net worth individuals...

retired recently wrote:Zero. High-paying job and frugal living.
Same here
by Wagnerjb
Thu Apr 27, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Stock options and tax planning
Replies: 6
Views: 440

Re: Stock options and tax planning

There is a minimal deferred compensation plan I can enroll in (applies to bonus only, choose % to send into deferred compensation plan ahead of time), but next option to opt-in is at the end of 2017 for money that would normally be payed out January 2020. You can elect to defer 100% of your bonus t...
by Wagnerjb
Wed Apr 26, 2017 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Stock options and tax planning
Replies: 6
Views: 440

Re: Stock options and tax planning

Are you eligible to participate in a management Deferred Compensation plan? If so, that presents a wonderful opportunity for tax management that could dovetail with exercising the options. Let us know...if you are, I will outline the strategy.

Best wishes.
by Wagnerjb
Wed Apr 26, 2017 8:37 am
Forum: Investing - Help with Personal Investments
Topic: $1m capital gains, worth it to simplify and index?
Replies: 46
Views: 4933

Re: $1m capital gains, worth it to simplify and index?

My takeaways are: 1) take a few years to unwind to stay in the 15% LTCG bracket 2) stop auto-reinvestment 3) sell disproportionate holdings from overweight sectors (unsurprisingly, there is much overlap here) 4) sell others from overweight sectors and other disproportionate holdings 5) look into a ...
by Wagnerjb
Mon Apr 24, 2017 8:58 am
Forum: Personal Consumer Issues
Topic: If you are financially independent, how much monywould you bother to make?
Replies: 31
Views: 4270

Re: If you are financially independent, how much monywould you bother to make?

For (1), I have no problem spending $1,000 in 3 months and no problem in payment, so $200 is an easy money. The reason that I did not apply is because that I already have too many credit cards and there may be better offer in the future, and $200 is not very much. I am completely retired and comple...
by Wagnerjb
Wed Apr 19, 2017 8:10 am
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 2022

Re: TaxAct not calculating capital gain harvesting properly?

I'm 15% MFJ and they did correctly $0 tax my QDs, though I didn't have much. I have already filed and I can still go in and mess with the forms/numbers. I even did a $20k fictional SEP deduction for my wife since she isn't self employed and then did the small $100 capital gain and it still said I o...
by Wagnerjb
Tue Apr 18, 2017 4:13 pm
Forum: Investing - Theory, News & General
Topic: Weight loss and investing
Replies: 35
Views: 4707

Re: Weight loss and investing

Excellent list, and I agree 100% with the comparisons. Also, in both activities there is a lot of money to be made telling naive or lazy people what they want to hear and how easy it is to lose weight or retire early. "Lose weight without exercise"...."You can retire rich", etc. There is always the ...
by Wagnerjb
Tue Apr 18, 2017 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: employer executive savings plan and 180k cash - prioritizing help
Replies: 14
Views: 1642

Re: employer executive savings plan and 180k cash - prioritizing help

Jason: I am 59 and I participated in a NQDC plan during my career, and the poster Hand has offered very sensible advice. Another risk not mentioned is that you might end up getting a 100% NQDC payout if you leave the firm before retirement. The huge tax burden on this distribution might more than of...
by Wagnerjb
Tue Apr 18, 2017 11:47 am
Forum: Investing - Theory, News & General
Topic: value of stock options
Replies: 30
Views: 2484

Re: value of stock options

I would love to see such a study, if you would be so kind as to provide a link. Sure. Here is a paper fleshing out such a view: http://www.slcg.com/pdf/workingpapers/OptimalExerciseofEmployeeStockOptions.pdf Thanks. I was hoping for an analytical calculation of the value of poor diversification as ...
by Wagnerjb
Tue Apr 18, 2017 10:24 am
Forum: Investing - Theory, News & General
Topic: everywhere we are encouraged to trade and to our detriment
Replies: 31
Views: 3715

Re: everywhere we are encouraged to trade and to our detriment

I was just thinking about progress in our "modern times." We as investors are encouraged to trade, trade, trade. The brokerage houses lowered commissions drastically from what they were years ago. Everywhere I go I see people intently watching their hand held computers even when crossing the street...