Search found 2174 matches

by bsteiner
Mon Dec 05, 2016 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: RMD Dilemma
Replies: 17
Views: 1515

Re: RMD Dilemma

I need some advice on how to manage our retirement accounts as we near RMD age. I am 65 and have approximately 2.7 million in my IRA and my wife is 64 and has approximately 4.3 million in her IRA. We were told that our account is too large because of the RMD rule. .... As long as the tax rate is le...
by bsteiner
Mon Dec 05, 2016 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: What level of wealth will get the attention of an estate attorney?
Replies: 39
Views: 5679

Re: What level of wealth will get the attention of an estate attorney?

So each beneficiary will probably end up with two trusts, one for his/her share of your retirement benefits and one for his/her share of your other assets. And both trusts will have management costs that will outrage and infuriate the beneficiary. As a practical matter, each child (or other benefic...
by bsteiner
Mon Dec 05, 2016 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: What level of wealth will get the attention of an estate attorney?
Replies: 39
Views: 5679

Re: What level of wealth will get the attention of an estate attorney?

bsteiner, thank you so much for the comments. Your interview with James Lange (https://www.paytaxeslater.com/radioshow_76_trusts_to_protect_your_family.php) regarding inherited IRA's was also extremely helpful. We were told previously that the balances in our 403Bs will not be included in the trust...
by bsteiner
Sun Dec 04, 2016 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: What level of wealth will get the attention of an estate attorney?
Replies: 39
Views: 5679

Re: What level of wealth will get the attention of an estate attorney?

I think that for the most part the issue is how the lawyer gets the prospective client's attention rather than the other way around. Some of the large firms might not take clients who aren't high net worth (with the test for high net worth being substantially more than the figure provided by the ori...
by bsteiner
Sun Dec 04, 2016 8:25 am
Forum: Personal Consumer Issues
Topic: What to do in Seattle (weekend trip)
Replies: 14
Views: 721

Re: What to do in Seattle (weekend trip)

I was in Seattle about a month ago to speak at a conference (to about 1,000 people at the Washington Convention Center). I got there a few days early. I stayed at the Fairmont Olympic, which was conveniently located in walking distance to everywhere I went. It was my first time in Seattle. I very mu...
by bsteiner
Thu Dec 01, 2016 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: QLAC - Determining long term benefit, pros & cons, tax consequences
Replies: 6
Views: 474

Re: QLAC - Determining long term benefit, pros & cons, tax consequences

... What are the major cons for a QLAC? ... The tradeoff is the cost (in other words, the difference between the present value of the expected future payments and the purchase price for the annuity). You also give up flexibility. In exchange, you get the insurance protection of the annuity, and the...
by bsteiner
Wed Nov 30, 2016 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Trust with a spendthrift heir
Replies: 18
Views: 2316

Re: Trust with a spendthrift heir

Would it be possible to have your wills state that an SPIA be purchased for each child? I would think that this would avoid high fees of a trust and tax treatment of a trust. ... It's possible, but instead of the costs and taxes of the trust, you'll have the much higher costs and taxes of the annui...
by bsteiner
Wed Nov 30, 2016 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Trust with a spendthrift heir
Replies: 18
Views: 2316

Re: Trust with a spendthrift heir

Given you age and assets, you would probably do this in your Will rather than now. You or your wife might live another 20 or 30 years and need some of the money. After you die, if you change your Will, we won't know about it. However, if your Will is well drafted, the trustees will have the necessar...
by bsteiner
Tue Nov 29, 2016 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Corporate trustees and leaving money to mentally ill child
Replies: 10
Views: 1300

Re: Corporate trustees and leaving money to mentally ill child

Afull wrote:...Fidelity vets Estate Attorneys so just ask and they can give you a list for your area. ...


Are the better ones on their list?
by bsteiner
Tue Nov 29, 2016 3:13 pm
Forum: Investing - Theory, News & General
Topic: S Corp Accounting and procedures
Replies: 6
Views: 667

Re: S Corp Accounting and procedures

Depending on how badly it is messed up, you might consider the nuclear option: Go out of business for this business entity, and start a new LLC/S Corp. If the new entity is taxable as a corporation (whether as an S corporation or as a C corporation) it will be considered a continuation if the exist...
by bsteiner
Tue Nov 29, 2016 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: DIY Wills - Who to use?
Replies: 24
Views: 1763

Re: DIY Wills - Who to use?

A couple options on the cheap: -Some companies offer a legal service for cheap (check your benefits). Use the legal service for a year or whatever minimum you can, then cancel -Here's what I did - I used Nolo software to create a will. It spit out a pdf for me. I then used text recognition, copied/...
by bsteiner
Mon Nov 28, 2016 8:58 pm
Forum: Investing - Theory, News & General
Topic: Any CPAs? Need to prep books for S Corp
Replies: 7
Views: 853

Re: Any CPAs? Need to prep books for S Corp

Did you elect to treat the LLC as a corporation and then to make an S election for it? Yes, this is what was done. There are 3 real estate holding entities. I have met with 3 cpas and they all think this was an awful move. ... It's probably awful though I've had cases where it made sense to put rea...
by bsteiner
Mon Nov 28, 2016 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: What is the advantage of a Revocable Trust (FL)?
Replies: 1
Views: 308

Re: What is the advantage of a Revocable Trust (FL)?

He'll still get the homestead exemption. The homestead wouldn't be a probate asset in any event. The only thing it gets him is the possibility of being a test case as to whether the homestead protection from creditors is lost in a bankruptcy if the homestead is in a revocable trust. There was one ca...
by bsteiner
Mon Nov 28, 2016 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Power of Attorney for my father
Replies: 2
Views: 345

Re: Power of Attorney for my father

... He ... received an inheritance from his mother earlier this year around 200K. Is there anyway I can help protect that money for him so it doesn't all go to this medical costs? .... If his mother died within the last 9 months, and if he hasn't accepted his inheritance or any of its benefits yet ...
by bsteiner
Mon Nov 28, 2016 10:00 am
Forum: Personal Finance (Not Investing)
Topic: An IRS correspondence mess
Replies: 40
Views: 2743

Re: An IRS correspondence mess

... She may be a family friend, but she also received $250 in payment for the return. ... You get what you pay for, or perhaps more accurately you may or may not get what you pay for but you're unlikely to get what you didn't pay for. For $250 you're unlikely to get a senior tax person at a Final F...
by bsteiner
Sun Nov 27, 2016 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Types of Assets HNWI Boomers Own
Replies: 21
Views: 2383

Re: Types of Assets HNWI Boomers Own

... bsteiner, while I agree with your comments regarding Boomers with HNW, I am hypothesizing that Boomers-- relative to Silent or Greatest generations members --have more vacation homes, more have rental real estate, more use living trusts, and more have collectibles, and more have a large % of as...
by bsteiner
Sun Nov 27, 2016 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: I401k Whether to go Roth or not
Replies: 34
Views: 1572

Re: I401k Whether to go Roth or not

2. For someone who can afford to maximize his/her contributions, the Roth is effectively larger. If you're in a 25% bracket, contributing $18,000 to a Roth 401(k) is equivalent to contributing $24,000 to a traditional 401(k). However, except for the catch-up, you can't contribute $24,000 to a tradi...
by bsteiner
Sun Nov 27, 2016 9:53 am
Forum: Investing - Help with Personal Investments
Topic: I401k Whether to go Roth or not
Replies: 34
Views: 1572

Re: I401k Whether to go Roth or not

Interesting that traditional is the better default approach, I didn't know that. Also, I would certainly assume that the tax rate is higher during times of contribution is higher than during times of Withdrawal. Why would one be withdrawing if they were still earning good money? I would think if pe...
by bsteiner
Sun Nov 27, 2016 9:20 am
Forum: Investing - Theory, News & General
Topic: Any CPAs? Need to prep books for S Corp
Replies: 7
Views: 853

Re: Any CPAs? Need to prep books for S Corp

Did you elect to treat the LLC as a corporation and then to make an S election for it? If so, your accountant had to file it that way. If not, then the return was in error, and you should have filed as a C corporation (if you elected to treat the LLC as a corporation but didn't make an S election fo...
by bsteiner
Fri Nov 25, 2016 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Move IRA to private shares?
Replies: 17
Views: 1166

Re: Move IRA to private shares?

Ouch, check out these Pensco reviews: ... Does anyone know of another self-directed IRA custodian? Yes. There are several. However, a couple of the ones we've used over the years (First Trust and Lincoln Trust) are now part of Pensco. Others we've used are Sterling Trust (now part of Equity Trust) ...
by bsteiner
Thu Nov 24, 2016 11:34 pm
Forum: Personal Finance (Not Investing)
Topic: Types of Assets HNWI Boomers Own
Replies: 21
Views: 2383

Re: Types of Assets HNWI Boomers Own

At $30 million a second home is more likely.
by bsteiner
Thu Nov 24, 2016 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse stepped-up basis on real estate. Now can depreciate again?
Replies: 7
Views: 1148

Re: Spouse stepped-up basis on real estate. Now can depreciate again?

At one time, Congress assumed that husbands owned the assets and died first. Upon the husband's death, the assets got a step-up in basis, and the estate could take a marital deduction for 50% of the value of the estate. To provide comparable treatment for people in community property states, both ha...
by bsteiner
Thu Nov 24, 2016 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Types of Assets HNWI Boomers Own
Replies: 21
Views: 2383

Re: Types of Assets HNWI Boomers Own

I am starting in on secondary research on Baby Boomers to understand better the assets that high net worth ($3MM+ in investment assets, excluding personal residence) individuals own. I'm specifically trying to compare their asset ownership to the generations before them, namely those from the Silen...
by bsteiner
Wed Nov 23, 2016 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: From no state-tax to state-tax
Replies: 26
Views: 2313

Re: From no state-tax to state-tax

At least for IRAs, you get New Jersey basis for your contributions (even if you didn't live in New Jersey at the time). See these: http://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1.pdf, http://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git2.pdf. Oh, right, I was forgetting that N...
by bsteiner
Wed Nov 23, 2016 10:04 am
Forum: Personal Finance (Not Investing)
Topic: From no state-tax to state-tax
Replies: 26
Views: 2313

Re: From no state-tax to state-tax

... if 403b contributions are not deductible in NJ, I assume that 403b distributions are then tax-free? What about 403b contributions made while living in another state? What about a 403b with NJ contributions which is rolled over to an IRA with subsequent distributions in NJ? What about an IRA wit...
by bsteiner
Wed Nov 23, 2016 9:30 am
Forum: Personal Finance (Not Investing)
Topic: From no state-tax to state-tax
Replies: 26
Views: 2313

Re: From no state-tax to state-tax

I live in New Jersey and work in Manhattan. New Jersey allows very few deductions -- basically personal exemptions, alimony and medical expenses. So you could have more children, pay alimony, or pay more medical expenses. Your New Jersey income tax probably won't be deductible against the Federal in...
by bsteiner
Tue Nov 22, 2016 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Which account best? Roth versus traditional
Replies: 68
Views: 2238

Re: Which account best? Roth versus traditional

You raise good points. Many people have a period when they're not working, which would let them convert at a lower bracket. On the other hand, if you contribute the maximum each year for many years you may not be able to convert more than a small portion of your retirement benefits in lower bracket...
by bsteiner
Tue Nov 22, 2016 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life - 7 "pithy" questions to ask the salesman
Replies: 43
Views: 3735

Re: Whole life - 7 "pithy" questions to ask the salesman

Interesting figures, but for the individual the question is not what proportion of the population will be injured or killed, but what is the likelihood of that war fighter suffering those fates. That risk could be high even as the total number of deaths are small. Still relatively small in relation...
by bsteiner
Tue Nov 22, 2016 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life - 7 "pithy" questions to ask the salesman
Replies: 43
Views: 3735

Re: Whole life - 7 "pithy" questions to ask the salesman

While we don't know what the future will bring, except for the Civil War, the Revolutionary War, and perhaps World War I, the number of U.S. military deaths probably hasn't been significant from an actuarial standpoint: https://en.wikipedia.org/wiki/United_St ... ies_of_war.
by bsteiner
Tue Nov 22, 2016 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Which account best? Roth versus traditional
Replies: 68
Views: 2238

Re: Which account best? Roth versus traditional

One more factor for someone who can afford to maximize his/her contributions is that a Roth is effectively larger than a traditional For example, for someone in a 33 1/3% tax bracket, contributing $18,000 to a Roth 401(k) is equivalent to contributing $27,000 to a traditional 401(k). Over a long pe...
by bsteiner
Tue Nov 22, 2016 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Which account best? Roth versus traditional
Replies: 68
Views: 2238

Re: Which account best? Roth versus traditional

... bsteiner, Are we talking about the OP's case? Aka, a person in 33 1/3% marginal tax rate and with 450K of annual income? The next brackets are 28%and 25%. At 32 and with 164K in the retirement account and no pension, OP needs to reach a few million in retirement asset before he could reach 25% ...
by bsteiner
Tue Nov 22, 2016 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Which account best? Roth versus traditional
Replies: 68
Views: 2238

Re: Which account best? Roth versus traditional

One more factor for someone who can afford to maximize his/her contributions is that a Roth is effectively larger than a traditional For example, for someone in a 33 1/3% tax bracket, contributing $18,000 to a Roth 401(k) is equivalent to contributing $27,000 to a traditional 401(k). Over a long pe...
by bsteiner
Tue Nov 22, 2016 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Which account best? Roth versus traditional
Replies: 68
Views: 2238

Re: Which account best? Roth versus traditional

One more factor for someone who can afford to maximize his/her contributions is that a Roth is effectively larger than a traditional For example, for someone in a 33 1/3% tax bracket, contributing $18,000 to a Roth 401(k) is equivalent to contributing $27,000 to a traditional 401(k). Over a long per...
by bsteiner
Mon Nov 21, 2016 6:13 pm
Forum: Investing - Theory, News & General
Topic: Father passed - First steps to taking over finances?
Replies: 25
Views: 2164

Re: Father passed - First steps to taking over finances?

... Bsteiner, have you ever had to go to the IRS to get recent tax returns on people who died and the family could not find records? Yes. It happens. You request copies by filing Form 4806: https://www.irs.gov/pub/irs-pdf/f4506.pdf. But usually someone has the returns -- they're in the decedent's p...
by bsteiner
Mon Nov 21, 2016 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Form 706 & Portability of DSUE
Replies: 4
Views: 270

Re: Form 706 & Portability of DSUE

My mom passed away about 6 months ago (2016) and my dad and I are trying to understand portability of the $5.45M Deceased Spouse Unused Exclusion (DSUE) tax exemption and how to file Form 706. My dad is the executor of her estate. Although their combined estate is worth more than $12M, most of it i...
by bsteiner
Mon Nov 21, 2016 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Distribution Question
Replies: 8
Views: 866

Re: IRA Distribution Question

Also, how was someone other than the beneficiary able to make such an election?
by bsteiner
Mon Nov 21, 2016 12:01 pm
Forum: Investing - Theory, News & General
Topic: Father passed - First steps to taking over finances?
Replies: 25
Views: 2164

Re: Father passed - First steps to taking over finances?

... The biggest problem we had was the will as we only had a copy which the court did not recognize and the law firm did not have the original. .... If you can't find the original Will, there's a presumption that the testator destroyed the original Will with the intention of revoking it. It's possi...
by bsteiner
Mon Nov 21, 2016 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Prepaying 2017 state/local taxes before end of 2016
Replies: 25
Views: 1912

Re: Prepaying 2017 state/local taxes before end of 2016

I'd like to pay as much of my state/local 2017 taxes by the end of this year for deduction purposes. ... Would a payment in excess of a good faith estimate of your 2016 tax be deductible? I think I'm being set up, Bruce, but I don't know of anything denying the deduction. However, I do recall somet...
by bsteiner
Mon Nov 21, 2016 10:01 am
Forum: Investing - Theory, News & General
Topic: Father passed - First steps to taking over finances?
Replies: 25
Views: 2164

Re: Father passed - First steps to taking over finances?

Look for a copy of his Will. That will show the name and address of the law firm that probably has the original. Look for a copy of a recent tax return. If he had an accountant, that will show the name of the accountant and the accounting firm. The accountant may know who the lawyer is. Check his ch...
by bsteiner
Sun Nov 20, 2016 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Prepaying 2017 state/local taxes before end of 2016
Replies: 25
Views: 1912

Re: Prepaying 2017 state/local taxes before end of 2016

NorCalDad wrote:I'd like to pay as much of my state/local 2017 taxes by the end of this year for deduction purposes. ...


Would a payment in excess of a good faith estimate of your 2016 tax be deductible?
by bsteiner
Sun Nov 20, 2016 8:38 am
Forum: Investing - Help with Personal Investments
Topic: 529 Plan options for NJ residents working in NY
Replies: 12
Views: 726

Re: 529 Plan options for NJ residents working in NY

Contributing to the NY plan won't lower your non-resident NY taxes by very much. The reason is that NY taxes you on income with a source in NY, and computes the tax by prorating your NY income against your total income.... I wonder whether someone could challenge that, and argue that the deduction ...
by bsteiner
Fri Nov 18, 2016 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: To structure attorney fees, or not.....
Replies: 11
Views: 711

Re: To structure attorney fees, or not.....

What method would permit you to shelter the most in retirement plans? If you're a lawyer, presumably you won't be in a very low tax bracket in any event. Would spreading the income save much in income taxes? Note that annuities convert your qualified dividends, long-term capital gains and tax-exempt...
by bsteiner
Tue Nov 15, 2016 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Portability, Bypass Trusts, Basis Step-ups, etc.
Replies: 22
Views: 2562

Re: Portability, Bypass Trusts, Basis Step-ups, etc.

... Given portability and the increased personal estate tax exemption amount (current rules and cutoffs), does it make sense to place the assets of the first to die spouse in a trust vs. simply passing the 1st to die spouses assets to the surviving spouse and porting the deceased spouses personal e...
by bsteiner
Tue Nov 15, 2016 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Move IRA to private shares?
Replies: 17
Views: 1166

Re: Move IRA to private shares?

Yes. Your IRA can invest in shares of a privately held corporation. You'll need to find a custodian that will allow it, but there are some that will. If you or your family has some other interest in or connection to the corporation, you'll have to check to make sure you don't run afoul of the self-d...
by bsteiner
Tue Nov 15, 2016 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Does Testamentary Trust As Beneficiary/POD/TOD Avoid Probate? [FLORIDA]
Replies: 18
Views: 1240

Re: Does Testamentary Trust As Beneficiary/POD/TOD Avoid Probate? [FLORIDA]

... would you mind explaining why or in what way having a second child makes naming the Testamentary Trust as POD/TOD/beneficiary of brokerage/bank/real estate accounts Not a good idea? If you name the trust for Child A as beneficiary, and you then have Child B, you might not want the asset to go e...
by bsteiner
Mon Nov 14, 2016 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited assets: Tax deferred vs. ordinary
Replies: 3
Views: 618

Re: Inherited assets: Tax deferred vs. ordinary

Depending on the age of the beneficiaries, and whether they can afford to stretch the distributions, the benefit of the stretch may outweigh the fact that the distributions from the retirement benefits are taxable. However, even if that's the case, most people in this situation would use the retirem...
by bsteiner
Mon Nov 14, 2016 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Postpone Roth Conversion for Lower Tax Rate
Replies: 7
Views: 592

Re: Postpone Roth Conversion for Lower Tax Rate

Donald Trump's tax proposal would expand the width of the 25% bracket: http://www.npr.org/2016/11/13/501739277 ... s-tax-plan.

So if it were to be enacted, it would allow for larger conversions within the 25% bracket.
by bsteiner
Mon Nov 14, 2016 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Does Testamentary Trust As Beneficiary/POD/TOD Avoid Probate? [FLORIDA]
Replies: 18
Views: 1240

Re: Does Testamentary Trust As Beneficiary/POD/TOD Avoid Probate? [FLORIDA]

The statutory schedule of presumed reasonable legal fees that you cited is for all of the legal work involved in the estate, of which probating the Will is generally a very small part. The legal work is pretty much the same regardless of whether your brokerage account is a probate asset or whether i...
by bsteiner
Sun Nov 13, 2016 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Does Testamentary Trust As Beneficiary/POD/TOD Avoid Probate? [FLORIDA]
Replies: 18
Views: 1240

Re: Does Testamentary Trust As Beneficiary/POD/TOD Avoid Probate? [FLORIDA]

Probating a Will in Florida is generally not particularly difficult, expensive or burdensome. We probate lots of Wills throughout Florida from our office in New York. The forms are the same throughout Florida, and we file the forms electronically (sending in the original Will by FedEx). Your Will do...
by bsteiner
Sun Nov 13, 2016 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: How much is business worth?
Replies: 49
Views: 4401

Re: How much is business worth?

bb wrote:
No one is going to invest $250k to make $40k a year


I have wondered to what extent small businesses that are for sale are akin to buying a job.


One of my mentors, long deceased, described it that way about 30 years ago.

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