Search found 31 matches

by RobertB
Fri Aug 04, 2017 3:59 pm
Forum: Personal Investments
Topic: Strategy for getting out of Northwestern Mutual
Replies: 19
Views: 4403

Re: Strategy for getting out of Northwestern Mutual

I use NWM for insurance, and I would recommend taking a careful look at any policies you do keep. When I got a term life insurance policy they tried very hard to sell my on a pricey disability waiver of the premium. It was preposterously expensive for what amounted to a $200/month LTD policy. You ne...
by RobertB
Tue Feb 07, 2017 10:18 am
Forum: Personal Investments
Topic: Fundrise eREIT
Replies: 19
Views: 4284

Re: Fundrise eREIT

There's a ton of marketing gimmickry around this fund. This is just a public non-traded REIT focusing on small multi-family properties. That's the product. The problem for the marketers is that public non-traded REITs as a group have a pretty bad reputation, to the point that FINRA has a detailed ca...
by RobertB
Mon Jan 09, 2017 12:18 pm
Forum: Personal Investments
Topic: Taxable company choice to allow TLH?
Replies: 43
Views: 2938

Re: Taxable company choice to allow TLH?

That wasn't the point. For all intensive purposes, you can take the Fidelity S&P 500 share and break it into individual stocks and put it back together (though a market maker) and have the same Vanguard S&P 500 share. The management is really inconsequential to the actual holdings you'd hav...
by RobertB
Mon Jan 09, 2017 11:30 am
Forum: Personal Investments
Topic: Taxable company choice to allow TLH?
Replies: 43
Views: 2938

Re: Taxable company choice to allow TLH?

If their names were masked, would we consider these investment products to be substantially identical? Have you provided all information about the funds? The IRS publications say all factors must be considered. That, to me, includes managing company, lending revenue, other specific features. So, no...
by RobertB
Thu Dec 29, 2016 3:46 pm
Forum: Personal Investments
Topic: Paying myself a salary for investment and tax management?
Replies: 71
Views: 5795

Re: Paying myself a salary for investment and tax management?

Maybe I should just edit the original post to make the question even clearer: "I want to donate money to the treasury via the following procedure: [...]. Is it valid to pay yourself a salary or no?" It is most certainly not. You could set up an S corp to hold your investments and pay your...
by RobertB
Wed Nov 16, 2016 8:37 am
Forum: Personal Investments
Topic: NQSO Tax Strategy
Replies: 13
Views: 3673

Re: NQSO Tax Strategy

My main concern is that you don't know what your tax rate will be in 2022. You're accelerating an income tax liability and giving up a significant amount of option value in a play that may not reduce your tax rate very much. Also, are you maxed out of social security? This strategy definitely doesn'...
by RobertB
Wed Oct 26, 2016 9:03 am
Forum: Personal Investments
Topic: Are these "claimed" investment returns realistic
Replies: 28
Views: 2844

Re: Are these "claimed" investment returns realistic

Why does it matter if these numbers are correct or not? There's no question that some advisors beat the indexes. The problem is that high-fee advisors on average do worse than the indexes after fees and there is little evidence that the advisors who have done well in the past are the ones who will d...
by RobertB
Mon Oct 24, 2016 1:11 pm
Forum: Personal Investments
Topic: Cost of Issuance: Private Placement - Red Flag?
Replies: 2
Views: 417

Re: Cost of Issuance: Private Placement - Red Flag?

It is such a red flag that you should run away from this investment, run away from whoever brought this investment to your attention, and run away from whatever investment philosophy you were applying that led you take advice from the person who brought this investment to your attention.
by RobertB
Wed Oct 12, 2016 1:07 pm
Forum: Personal Investments
Topic: Asset allocation (net of capital gains tax?)
Replies: 9
Views: 1406

Re: Asset allocation (net of capital gains tax?)

I don't think the accrued tax liability has any relevance in itself. What is important is what percentage of each dollar of gain or loss you keep versus what goes to the government. So, if you have a capital gain asset in a taxable account, you should weight it at 80% (or whatever the correct LTCG M...
by RobertB
Mon Aug 22, 2016 9:58 am
Forum: Personal Investments
Topic: Seemingly Too Good To Be True Investment Opportunity: Invest or Don't?
Replies: 85
Views: 9487

Re: Seemingly Too Good To Be True Investment Opportunity: Invest or Don't?

You should not make this investment and you should stop wasting time thinking about it. The reason banks require a lot of paperwork and disclosure before they make a loan is that they want to ensure that they aren't getting scammed and that there's a reasonable certainty of getting repaid. Your frie...
by RobertB
Wed Aug 10, 2016 3:16 pm
Forum: Personal Investments
Topic: Auto Callable Contingent Interest Notes linked to Indexes
Replies: 16
Views: 2635

Re: Auto Callable Contingent Interest Notes linked to Indexes

JP Morgan designed this instrument knowing that they were going to be on the issuer side of the bet. Do you think you are savvier than the team of quants that designed this note? Do you think JPM just didn't care about making money on this product? View this like a table game at a casino. You don't ...
by RobertB
Mon Jul 18, 2016 12:27 pm
Forum: Personal Investments
Topic: cannot wrestle IRA from custodian. Help?
Replies: 33
Views: 5153

Re: cannot wrestle IRA from custodian. Help?

Here is what I would do: Get together high-res PDFs of all the documentation they have ever requested. Then call them (do it early in the day because this could be a marathon) with the goal of having the transfer approved that day. Keep in mind that that, even at reputable companies, customer-servic...
by RobertB
Wed Jul 13, 2016 9:40 am
Forum: Personal Investments
Topic: NO bonds in my taxable account, really?
Replies: 38
Views: 9563

Re: NO bonds in my taxable account, really?

Thanks for all the super-quick responses, WOW! This is an active forum!! I just edited my question to make it clear that the taxable accounts are for retirement. I guess I'm just surprised: I always thought the 'growing tax-free-ness' of the IRA's would be HUGE. Without any mathematical justificati...
by RobertB
Wed Jun 22, 2016 9:45 am
Forum: Personal Investments
Topic: Capital Gains Exclusion a Good Reason to Sell House?
Replies: 15
Views: 3526

Re: Capital Gains Exclusion a Good Reason to Sell House?

Would the sale be fully tax-free, taking into account the exclusion? If so, it seems like a great reason to sell. If not, it gets more complicated. Basically, there are two ways to avoid capital gains tax on a residence. The first is to sell it while you qualify for the primary residence exclusion. ...
by RobertB
Tue Jun 21, 2016 1:26 pm
Forum: Personal Investments
Topic: Help - At An Investing Crossroads
Replies: 15
Views: 1760

Re: Help - At An Investing Crossroads

It sounds like PC's real concern is that your portfolio is underweight in fees!

Your concern about tinkering and fiddling is valid and common and you should fight it, but it's hard to imagine what tinkering you could do that would cost you 0.85% a year.
by RobertB
Mon May 23, 2016 11:47 am
Forum: Personal Investments
Topic: Advice for a soon-to-be MLB draftee
Replies: 68
Views: 13039

Re: Advice for a soon-to-be MLB draftee

It doesn't seem like there's much value to be gained from any sort of professional advice here, apart from an agent. There's no magic to investing a million dollar portfolio. There's no tax magic to help you if you get paid a big cash salary. There's no estate-planning issues here. The big challenge...
by RobertB
Wed May 18, 2016 4:30 pm
Forum: Personal Investments
Topic: A very large sum and a unique situation
Replies: 24
Views: 3734

Re: A very large sum and a unique situation

The son needs to at least consult estate/tax attorneys since this involves multiple families and probably complex legal/family/tax issues. This is clearly necessary. Getting someone to play around with some spreadsheets and tell you what you can spend is clearly a good idea, and the someone is prob...
by RobertB
Mon May 16, 2016 8:40 am
Forum: Personal Investments
Topic: Gifting and receiving back years later
Replies: 27
Views: 2552

Re: Gifting and receiving back years later

That's the point. It's not a gift. Gill So once you "gift" someone you can never get anything back as a "gift" from them? Is there any time duration specified? What if the money you gifted exchanges hands and come to you as a "gift" from a different person? I searched ...
by RobertB
Sat May 14, 2016 11:41 am
Forum: Personal Investments
Topic: Vanguard Domestic Dividend Funds - VHDYX vs VDADX
Replies: 25
Views: 8617

Re: Vanguard Domestic Dividend Funds - VHDYX vs VDADX

I like dividends and have posted on that subject many, many times. And I have gotten beaten up on those threads many, many times. A dividend strategy like you are suggesting isn't a bad one but the timing is terrible. Investors have been chasing yield on both the equity and the bond side since late...
by RobertB
Wed Apr 27, 2016 5:30 pm
Forum: Personal Investments
Topic: High Yield Dividend funds
Replies: 9
Views: 1877

Re: High Yield Dividend funds

FiveK, when might one pay more Federal taxes on qualified dividends than on long term capital gains? When the amount of qualified dividends thrown off by the investments is more than you need to withdraw. It's a fine point, based on the assumption that you could sell shares at any time during the y...
by RobertB
Wed Apr 20, 2016 2:16 pm
Forum: Personal Investments
Topic: Struggling with Bogle Philosophy
Replies: 18
Views: 3107

Re: Struggling with Bogle Philosophy

Obviously everyone is 100% correct about not being able to predict future performance. If you could reliably pick stocks that would do better than the index without taking on more risk, you could be an elite hedge fund manager. Since we know that being an elite hedge fund manager is hard, picking st...
by RobertB
Sun Apr 17, 2016 10:01 am
Forum: Personal Investments
Topic: Tax Gain Harvesting with Vanguard Mutual Funds
Replies: 24
Views: 2831

Re: Tax Gain Harvesting with Vanguard Mutual Funds

Exchanging Admiral or investor to ETF (share class) isn't a taxable event, so it'd be very interesting if exchanging Admiral to investor were both a taxable event and allowed by the frequent trading policy. Inquiring minds want to know!!!!! Can ask for a source for your claim that exchanging to ETF...
by RobertB
Tue Mar 29, 2016 5:47 pm
Forum: Personal Investments
Topic: NNN lease
Replies: 7
Views: 1251

Re: NNN lease

Anybody have experience with NNN properties? I have spent last few weeks looking at various large NNN deals and some of them look rather interesting. Getting 5-6% back on 3-7M is not too bad for no work. Any tips/comments/ideas/websites/info or anything else I should read up on before buying in? Th...
by RobertB
Tue Mar 22, 2016 3:24 pm
Forum: Personal Investments
Topic: Confused by Tax loss Harvesting (TLH)
Replies: 9
Views: 962

Re: Confused by Tax loss Harvesting (TLH)

I still don't understand it. Can someone explain it using the OP's example/numbers (filling in capital gains, etc)? The point is that the built-in gain in VWO ($1 million in the example) can be deferred until you liquidate the shares after you retire. The loss is realized now, gives you a $3,000 de...
by RobertB
Wed Feb 24, 2016 12:54 pm
Forum: Personal Investments
Topic: FSL NXP merger tax consequences? [Freescale / NXP Semiconductor]
Replies: 11
Views: 1999

Re: FSL NXP merger tax consequences?

As you noted, the disclosure around this merger indicates that this transaction is fully taxable (and not a tax-free reorganization), which means you have gain equal to all cash received plus the FMV of shares received minus your basis in the shares surrendered. The relevant holding period is the ho...
by RobertB
Thu Feb 11, 2016 1:51 pm
Forum: Personal Investments
Topic: Private Real Estate "Funds"
Replies: 29
Views: 2843

Re: Private Real Estate "Funds"

You have to keep in mind that you are comparing actual or market-predicted returns for public REITs with purely hypothetical "target" returns. So the simple answer to your question of why private RE funds project higher returns than the public markets is that no one would even consider inv...
by RobertB
Tue Dec 15, 2015 10:49 am
Forum: Personal Investments
Topic: Syndicated Real Estate Investment Opportunity
Replies: 19
Views: 3718

Re: Syndicated Real Estate Investment Opportunity

With those numbers, they've basically levered themselves into their carried interest from Day 1. If the current cap rate is 5.7%, NOI from the asset should be $381,900. Interest on a $5 million loan at 3.7% is $185,900. 8% preferred return on $1,959,000 of equity is $156,700. That leaves the sponsor...
by RobertB
Tue Dec 15, 2015 9:37 am
Forum: Personal Investments
Topic: Syndicated Real Estate Investment Opportunity
Replies: 19
Views: 3718

Re: Syndicated Real Estate Investment Opportunity

Are you sure you understand all the fees that are being paid here? I work on a lot of institutional RE deals as a tax lawyer and here are some questions that I would have about the arrangement: There's a 2% acquisition fee and a 25% carried interest above an 8% return. (Side note: Does the 8% return...
by RobertB
Fri Oct 23, 2015 2:01 pm
Forum: Personal Investments
Topic: ST/LT shares and carryforward losses
Replies: 3
Views: 532

Re: ST/LT shares and carryforward losses

A short-term gain can only be offset by a short-term loss. So if your loss carryover is only long-term capital losses, a short-term capital gain WOULD be taxable.
by RobertB
Wed Oct 21, 2015 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: What are your 2 retirement numbers?
Replies: 260
Views: 39557

Re: What are your 2 retirement numbers?

Could someone walk through how they are arriving at their target numbers? I was previously aiming for $150k/year of retirement spending, and projecting 7.5 million to retire by 50, assuming you get a 2% real yield on a safe asset allocation. Is that way too conservative and/or extravagant on the sp...
by RobertB
Wed Oct 21, 2015 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: What are your 2 retirement numbers?
Replies: 260
Views: 39557

Re: What are your 2 retirement numbers?

Could someone walk through how they are arriving at their target numbers? I was previously aiming for $150k/year of retirement spending, and projecting 7.5 million to retire by 50, assuming you get a 2% real yield on a safe asset allocation. Is that way too conservative and/or extravagant on the spe...