Search found 1005 matches

by Walkure
Sat Mar 16, 2024 8:16 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4079

Re: Which industry will benefit from new real estate commission fee structure?

I think all aspects of the real estate business from benefit from the collapse of the fixed fee structure. They will add new fees and hide them in all kinds of new ways we can't even imagine today. In place of a single bundled commission fee there will be a plethora of new fees and charges to deal with. The possibilities are endless, advertising fees, fees for "for sale" sign placement, rental, and removal, open house charges, walk-through fees for showing the home to prospective purchasers, listing fees, hourly charges for accommodating appraisers and home inspections, etc, gobs and gobs of fees like you've never seen before. Many of the fees might not be dependent on the closing of a sale. While those are interesting ideas for ...
by Walkure
Fri Mar 15, 2024 8:05 am
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 120
Views: 11114

Re: The best game-changing financial advice you ever received (or "discovered")

Cobra Commander wrote: Thu Mar 14, 2024 9:47 pm It's not what you make it's how you spend it.

On a related note, always helpful to look at the per unit cost in the grocery store as sometimes different brands are in different sizes. Also, always consider the private label brand as an option. My dad worked in a plant that literally sold the same product to the private label.
even within a brand the unit price can vary wildly and the biggest is not always cheaper. And don‘t get me started on stores that label one brand per volume and the competing brand per weight just to make the comparison math harder.
by Walkure
Fri Mar 15, 2024 7:54 am
Forum: Personal Investments
Topic: Buying iBonds with income tax refund
Replies: 8
Views: 486

Re: Buying iBonds with income tax refund

In general, buying ibonds with a tax refund seems less advantageous than it was a few years ago since now you could have made 5% (up to $250 on $5000) on that money had you not overpaid your taxes. You are starting in a hole with this strategy - if holding ibonds long term for all the other advantages they provide its not that you are doing something wrong but these days I just don't like the idea of having cash not making money for up to year (by lending it to the government interest free). you make the assumption that i've overpaid by $5000 for a year and have missed out on that interest. While not part of my original post, i'll add that I manage my tax payments to avoid any underpayment penalty by just hitting the safe harbor. Then a co...
by Walkure
Fri Mar 08, 2024 3:32 pm
Forum: Personal Consumer Issues
Topic: Are white, red, blue and other bright colors safer [for cars] than other colors???
Replies: 45
Views: 3870

Re: Are white, red, blue and other bright colors safer than other colors???

TomatoTomahto wrote: Fri Mar 08, 2024 2:03 pm Sometimes it’s the penalty for living in a third world country. Oops, did I say that out loud?
For your penance you must sell 100 shares of VEA and buy VOO instead.
by Walkure
Fri Mar 08, 2024 11:27 am
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43535

Re: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF

Here's another interesting wrinkle. An ETF is an Exchange Traded Fund. Now if the IRS ever did decide to go after it at either the fund level or the individual investor, presumably there would be lawsuits. However, in the course of that legal jeopardy, one could reasonably assume that the ETF would start trading at a non-negligible discount to NAV. At which point, a new investor could reasonably make the case that they do NOT expect their investment in BOXX to derive substantially all of its return from time value because they are buying to arbitrage the gap between market price and NAV. Then the whole argument that it's a 1258 conversion transaction goes out the window. In other words, if the legal risk of being deemed a conversion constit...
by Walkure
Fri Mar 08, 2024 10:59 am
Forum: Investing - Theory, News & General
Topic: Margin Accounts - Avoiding 'Payment In Lieu Of Dividends'
Replies: 34
Views: 3178

Re: Margin Accounts - Avoiding 'Payment In Lieu Of Dividends'

Why is it a issue they are usually grossed up to assume highest tax rate so you can actually come out ahead. Not all brokers do that. I had never heard of this before, but here is a link from Fidelity. FWIW I don't get a credit from any of my cheapo brokerages, which is why I've turned off securities lending in all taxable accounts. https://www.fidelity.com/tax-information/tax-topics/annual-credit-for-substitute-payments Incidentally, with cash accounts, it is different from the margin hypothecation process described above. The brokers call it a "Fully Paid Securities Lending Program." In theory, they share some of the lending revenue with you (in practice, it's a pittance like 10%.) Fidelity is one of the few that will pay you a...
by Walkure
Fri Mar 08, 2024 10:42 am
Forum: Investing - Theory, News & General
Topic: Margin Accounts - Avoiding 'Payment In Lieu Of Dividends'
Replies: 34
Views: 3178

Re: Margin Accounts - Avoiding 'Payment In Lieu Of Dividends'

indexfundfan wrote: Fri Mar 08, 2024 7:11 am
JoeNJ28 wrote: Thu Mar 07, 2024 8:47 pm Why is it a issue they are usually grossed up to assume highest tax rate so you can actually come out ahead.
Not all brokers do that.
I had never heard of this before, but here is a link from Fidelity. FWIW I don't get a credit from any of my cheapo brokerages, which is why I've turned off securities lending in all taxable accounts.
https://www.fidelity.com/tax-informatio ... e-payments

Incidentally, with cash accounts, it is different from the margin hypothecation process described above. The brokers call it a "Fully Paid Securities Lending Program." In theory, they share some of the lending revenue with you (in practice, it's a pittance like 10%.)
by Walkure
Fri Mar 08, 2024 8:11 am
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15846

Re: Emerging Markets Stocks have been a complete disaster

VanGar+Goyle wrote: Fri Mar 08, 2024 1:00 am
Buying completely into your title, then you must have owned Emerging Markets Stocks in a Roth Account
and that account went to zero.
Not the OP, but I resemble that comment. FLRU still stings.
by Walkure
Thu Mar 07, 2024 6:53 pm
Forum: Investing - Theory, News & General
Topic: Margin Accounts - Avoiding 'Payment In Lieu Of Dividends'
Replies: 34
Views: 3178

Re: Margin Accounts - Avoiding 'Payment In Lieu Of Dividends'

The brokerages I've used allow you to "opt out" of securities lending - usually via an email to customer service. But those are all cash accounts, so perhaps the rules are different for margin.
by Walkure
Thu Mar 07, 2024 3:03 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15846

Re: Emerging Markets Stocks have been a complete disaster

In case anyone missed it (I sure did gloss over the Prospectus supplement email from Vanguard):
https://finance.yahoo.com/news/global-x ... 00999.html

It mostly impacts their China sector funds, but for me the loss of EMFM is unfortunate, as it offered about the only exposure to Frontier markets at a reasonable expense ratio out there.

I bit the bullet and swapped for FM (iShares Fronter and Select EM) which has similar exposure despite a nasty 0.79% expense ratio.
by Walkure
Thu Mar 07, 2024 1:20 pm
Forum: Personal Investments
Topic: Are factors dead?
Replies: 84
Views: 10771

Re: Are factors dead?

TimeIsYourFriend wrote: Thu Mar 07, 2024 12:16 pm Huge fortunes have been made in crypto. That doesn't mean those who are investing in it understand the risks.

You may want to read a book about the missing Billionaires. There should be thousands of billionaires today if past generations had just invested reasonably in the stock and bond markets.
That's the whole point. You don't need to understand the risk, model the risk, have a theory about why the risk exists, etc. You only need to have a belief, (which could be rooted in recency bias, past observation, whatever) that something is risky in some way and that you will be compensated / rewarded for taking on that risk.
by Walkure
Wed Mar 06, 2024 2:28 pm
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43535

Re: Box spreads to borrow and lend

jackal wrote: Tue Mar 05, 2024 7:31 pm if I did and something bad happened, what is the worst case scenario.
The worst case scenario is pretty clearly defined: everyone invested in it has to go back and amend their prior tax returns to report phantom interest income at their marginal ordinary income rate, with whatever taxes, penalties, and phaseouts that income incurs. How likely that worst case is would be anybody's guess.
by Walkure
Tue Mar 05, 2024 9:11 am
Forum: Personal Investments
Topic: Anyone else in frontier markets?
Replies: 34
Views: 3609

Re: Anyone else in frontier markets?

EMFM is a bit cheaper, but requires trader Kung Fu. The spreads are wicked, but that is often offset by the discount versus NAV. I'm surprised they haven't liquidated it yet. Bumping an old thread to say that the liquidation may be imminent. I have a smattering of EMFM shares from a while back and was going deploy some spare change in my sweep account to buy a few more to get to a round lot, when I noticed that the holdings have shifted to 98% cash with just three or four equities (a couple of foreign banks) remaining, and a sudden drop of about 20% of AUM in the past month. Needless to say, I will probably just exit this position. For those keeping score at home, this would make EMFM the fourth fund I invested in that has been frozen, liq...
by Walkure
Mon Mar 04, 2024 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Not understanding taxes and why I owe money
Replies: 50
Views: 4810

Re: Not understanding taxes and why I owe money

delamer wrote: Sun Mar 03, 2024 2:22 pm
murrays wrote: Sun Mar 03, 2024 2:14 pm
delamer wrote: Sun Mar 03, 2024 10:17 am Nobody likes to have to write the IRS a check at tax time.
I do, it’s either make the estimated payment on January 15 or April 15. Why in the world would I send a bigger check 3 months early just to wait for the money to come back to me?!?
I’m not following. Why would you knowingly overpay your taxes?
I-bonds. Also, some folks use a cash back credit/debit card to make tax payments.
by Walkure
Mon Mar 04, 2024 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Capital Gains and 1031ing into DST or another property
Replies: 8
Views: 602

Re: Real Estate Capital Gains and 1031ing into DST or another property

Danya wrote: Mon Mar 04, 2024 12:45 pm Anyone else have creative tax minimization strategies?

Thx!
Opportunity Zone investment?
by Walkure
Mon Mar 04, 2024 8:45 am
Forum: Personal Consumer Issues
Topic: Question about Solar panels
Replies: 92
Views: 6289

Re: Question about Solar panels

madbrain wrote: Sat Mar 02, 2024 6:34 pm
vsk wrote: Sat Mar 02, 2024 1:32 pm In the end I ditch solar and probably will shop around for a battery ONLY backup which gets charged from the utility. This is expensive!!!
You are not allowed to charge a battery from the grid in California. Grid-tied batteries must charge from local renewable solar energy. So, this isn't an option.
What do these regulators think an EV does? So you can't get a fixed battery backup that charges from the grid, but you can buy an F-150 Lighting that can feed power back to your house in the event of an outage? :oops:
by Walkure
Sat Mar 02, 2024 5:43 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149503

Re: Taxation of Treasury bills, notes and bonds

Okay, just a check to make sure I'm doing this correctly here. I purchased some STRIPS last fall with about 20 years to maturity. Vanguard reports the 1099-OID for all of these bonds. However, due to screwing up a few buys, I did sell a few of the bonds within a couple of days of purchase to get back to the right ladder rungs. All of these sales were for a slight gain (no wash sale issues!) On the 1099-B "SHORT TERM TRANSACTIONS FOR COVERED TAX LOTS" section, it reports the purchase basis and sale proceeds. The reported gains are the entire difference between these two values. However on the right under "Additional information" it reports "Original basis." These numbers are slightly less than "Cost or othe...
by Walkure
Fri Mar 01, 2024 5:26 pm
Forum: Investing - Theory, News & General
Topic: The recent surge: stand pat or "sell high?"
Replies: 54
Views: 6442

Re: The recent surge: stand pat or "sell high?"

mikejuss wrote: Fri Mar 01, 2024 8:56 am
windaar wrote: Fri Mar 01, 2024 6:46 am I've never understood why people come to this forum of all places to ask timing questions.
Username photo checks out. :wink:
Yep, ironic that a forum that eschews market timing filled a legendary 30 pages of thread debating $5,000 wristwatches:
viewtopic.php?t=27707
which the mods then locked and restarted as a successor thread for another 4 pages!
viewtopic.php?t=316440
by Walkure
Fri Mar 01, 2024 1:44 pm
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43535

Re: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF

And to complicate things, I could be in the 12% bracket next year. Even though that's 0% for cap gains, it still impacts my SS taxation. Every dollar of extra income (either tax-exempt or cap gains) will cause another $0.85 of my SS to be taxed. If you are in the SS tax torpedo, then you should strongly prefer BOXX as your marginal rate is more like 40% in the 22% bracket. Does this really matter? https://thefinancebuff.com/high-marginal-tax-rate-lower-taxes.html#htoc-tax-torpedo-on-social-security-benefits Of course it matters. This article is making the [all too common] mistake of looking at a single tax year in isolation under scenarios of higher and lower income. The correct analysis is a longitudinal view where the taxpayer has a cons...
by Walkure
Fri Mar 01, 2024 12:47 pm
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43535

Re: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF

Is this a good "cash" holding in this case? 22% US income tax bracket 5% state income tax This would be buy-and-hold for 3 years or so Current holding for this cash is a muni money market fund Very close to my situation. Munis are absolutely sub-optimal. You would get a better after-tax yield from Treasuries with no state tax. Assuming your state taxes LTCGs the same as regular income, 15% Fed + 5% State for BOXX is quite close to 22% Fed with no State. The advantage is in the way it defers the taxes until disposition, whereas the Treasury drag comes out every year. So yes, in your scenario, BOXX has a slight advantage. That reverses for someone near the top of the 12% Fed bracket, who might need to hold BOXX for a decade or more...
by Walkure
Fri Mar 01, 2024 12:16 pm
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43535

Re: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF

Is this a good "cash" holding in this case? 22% US income tax bracket 5% state income tax This would be buy-and-hold for 3 years or so Current holding for this cash is a muni money market fund Very close to my situation. Munis are absolutely sub-optimal. You would get a better after-tax yield from Treasuries with no state tax. Assuming your state taxes LTCGs the same as regular income, 15% Fed + 5% State for BOXX is quite close to 22% Fed with no State. The advantage is in the way it defers the taxes until disposition, whereas the Treasury drag comes out every year. So yes, in your scenario, BOXX has a slight advantage. That reverses for someone near the top of the 12% Fed bracket, who might need to hold BOXX for a decade or more...
by Walkure
Thu Feb 29, 2024 1:42 pm
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43535

Re: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF

Is this a good "cash" holding in this case? 22% US income tax bracket 5% state income tax This would be buy-and-hold for 3 years or so Current holding for this cash is a muni money market fund Very close to my situation. Munis are absolutely sub-optimal. You would get a better after-tax yield from Treasuries with no state tax. Assuming your state taxes LTCGs the same as regular income, 15% Fed + 5% State for BOXX is quite close to 22% Fed with no State. The advantage is in the way it defers the taxes until disposition, whereas the Treasury drag comes out every year. So yes, in your scenario, BOXX has a slight advantage. That reverses for someone near the top of the 12% Fed bracket, who might need to hold BOXX for a decade or more...
by Walkure
Thu Feb 29, 2024 1:16 pm
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43535

Re: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF

Is this a good "cash" holding in this case? 22% US income tax bracket 5% state income tax This would be buy-and-hold for 3 years or so Current holding for this cash is a muni money market fund Very close to my situation. Munis are absolutely sub-optimal. You would get a better after-tax yield from Treasuries with no state tax. Assuming your state taxes LTCGs the same as regular income, 15% Fed + 5% State for BOXX is quite close to 22% Fed with no State. The advantage is in the way it defers the taxes until disposition, whereas the Treasury drag comes out every year. So yes, in your scenario, BOXX has a slight advantage. That reverses for someone near the top of the 12% Fed bracket, who might need to hold BOXX for a decade or more...
by Walkure
Wed Feb 28, 2024 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23721

Re: another 5500ez penalty tale - $210,000

… The $250k limit doesn't matter because my wife's accounts are in excess of this but. But I wonder if under the circumstances we will need to file a 5500-SF or 5500 instead of the 5500-EZ. I affiliated my sole proprietor business with her plan. Does anyone know if we can still file 5500-EZ? Yes. Effective 1/1/2021, the IRS announced (link, below) Form 5500-EZ could now be filed electronically via EFSAT2 (prior to that the only filing option was on paper) and Form 5500-SF could no longer be used for a Solo 401k filing. A Solo 401k doesn’t meet the filing requirement for the full Form 5500. https://www.irs.gov/retirement-plans/form-5500-corner#:~:text=Beginning%20January%201%2C%202021%2C%20a,place%20of%20Form%205500%2DEZ. See toddthebod ’s ...
by Walkure
Wed Feb 28, 2024 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23721

Re: another 5500ez penalty tale - $210,000

… The $250k limit doesn't matter because my wife's accounts are in excess of this but. But I wonder if under the circumstances we will need to file a 5500-SF or 5500 instead of the 5500-EZ. I affiliated my sole proprietor business with her plan. Does anyone know if we can still file 5500-EZ? Yes. Effective 1/1/2021, the IRS announced (link, below) Form 5500-EZ could now be filed electronically via EFSAT2 (prior to that the only filing option was on paper) and Form 5500-SF could no longer be used for a Solo 401k filing. A Solo 401k doesn’t meet the filing requirement for the full Form 5500. https://www.irs.gov/retirement-plans/form-5500-corner#:~:text=Beginning%20January%201%2C%202021%2C%20a,place%20of%20Form%205500%2DEZ. See toddthebod ’s ...
by Walkure
Wed Feb 28, 2024 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23721

Re: another 5500ez penalty tale - $210,000

WARNING! PSA to couples with businesses! I went to read up on when the $250k asset threshold was legislated and found that it was part of 120 Stat. 1057, passed in 2006, to confirm that it is a fixed amount and has never been adjusted for inflation. (It is and it hasn't.) https://www.govinfo.gov/content/pkg/STATUTE-120/pdf/STATUTE-120-Pg780.pdf#page=278 However, further down the page in the definition of a "one-participant plan," one of the conditions to be met states "(a)(2)(D)) the plan does not cover a business that is a member of an affiliated service group, a controlled group of corporations, or a group of businesses under common control;" My reading (disclaimer: IANAL) is that if two spouses are a controlled group...
by Walkure
Wed Feb 28, 2024 11:45 am
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23721

Re: another 5500ez penalty tale - $210,000

Should people be discouraged from opening solo 401(k) plans because of this? I closed my plan this year and filed 5500-EZ on time and, I believe, correctly. However, I'm certainly not going to be shocked if I get a letter from the IRS saying I forgot to check some box or they expected me to file a second time or whatever. Are SEP-IRAs less likely to be subject to compliance issues? Solo 401(k)s are not simple and the consequences for screwups are severe. The common mistakes are: 1. Setting up multiple solo 401(k)s. 2. Terminating a solo 401(k) and establishing a new one within 12 months (violates successor plan rule). 3. Rolling solo 401(k) assets into an IRA or company 401(k) without terminating the solo 401(k) (where in service rollovers...
by Walkure
Wed Feb 28, 2024 11:28 am
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23721

Re: another 5500ez penalty tale - $210,000

hvaclorax wrote: Tue Feb 27, 2024 10:38 pm Is there a statute of limitations for this problem?
Not sure 100%, but typically with these things the IRS starts the clock from the date you file, so in the case of a form you never filed but were supposed to, they can always ask for it later.
by Walkure
Tue Feb 27, 2024 6:01 pm
Forum: Personal Investments
Topic: Where to find franchise opportunities?
Replies: 17
Views: 1879

Re: Where to find franchise opportunities?

Wiggums wrote: Tue Feb 27, 2024 4:00 pm while his wife recovered out of state from my bad vehicle accident while on a family vacation.
you found a franchisee for your injuries? :shock:
by Walkure
Tue Feb 27, 2024 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: When did your Net Worth surpass your lifetime earnings?
Replies: 93
Views: 11641

Re: When did your Networth surpass your lifetime earnings?

Walkure wrote: Mon Feb 26, 2024 6:07 pm Lifetime nominal wages or indexed real wages like SS uses?

Nominally right now, savings are around 43%.
Indexed, it's only 39%.
Circling back to report that I checked my spreadsheet, and right now the baseline case has the surpassing date happen 16 years into retirement. But that assumes salary keeps pace with inflation and investments make 4% real returns forever. If we get 6% real instead, it will cross right about at retirement. Given that a 1% percent difference in expected CAGR can shift it by nearly a decade, I don't see it being a particularly useful indicator of anything.
by Walkure
Tue Feb 27, 2024 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23721

Re: another 5500ez penalty tale - $210,000

I have been wondering what entity is legally responsible for the fines for failing to file the 5500-EZ. Technically the solo 401k is administered by the company (for some of us, it would be a single-member LLC). If the single-member LLC declares bankruptcy (due to inability to pay the fine), are we, as individuals, still liable for the remainder of the fine? When I file a 5500-EZ, I sign it as the plan administrator on behalf of my single-member LLC (and I am very clear when signing the plan that I am doing so as a member of my company). This to me is the weirdest part of the OP's saga. A few points here: 1. My business has been “Permanently Revoked” in registering state and has had no income since 2017. 2. My solo 401K is only for myself ...
by Walkure
Tue Feb 27, 2024 11:56 am
Forum: Personal Consumer Issues
Topic: Talk me out of buying a Nissan Armada!
Replies: 29
Views: 1939

Re: Talk me out of buying a Nissan Armada!

tibbitts wrote: Tue Feb 27, 2024 11:14 am
H-Town wrote: Tue Feb 27, 2024 11:05 am You can buy a school bus for under 9k. We always hear that "someone got hit by a bus", but never ever heard "a bus get hit by... a bigger bus".
Although if I bought a bus I don't think cab-forward (the flat-front design) would be my first choice.
https://www.middletownpress.com/news/ar ... 792389.php
Yeah, the flat-front bus is not ideal. I sat in bumper-to-bumper traffic 3 hours to go about 5 miles on I-95 when this one happened.
by Walkure
Mon Feb 26, 2024 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: When did your Net Worth surpass your lifetime earnings?
Replies: 93
Views: 11641

Re: When did your Networth surpass your lifetime earnings?

Lifetime nominal wages or indexed real wages like SS uses?

Nominally right now, savings are around 43%.
Indexed, it's only 39%.
by Walkure
Mon Feb 26, 2024 10:42 am
Forum: Personal Investments
Topic: 12% Bracket-Roth vs. Traditional
Replies: 35
Views: 4187

Re: 12% Bracket-Roth vs. Traditional

A Random Fellow wrote: Mon Feb 26, 2024 9:37 am Thought I'd get a quick sense from the community as I'm thinking through my plan for this year:

Absent a comprehensive financial evaluation, would you recommend a family prioritize Roth or Traditional retirement contributions when within the 12% marginal bracket (but not eligible for the savers credit or EITC)?

Reasons for your feedback are also appreciated. Thank you!
If you are in the 12% bracket and not eligible for EITC, would aggressively contributing to a 401k (not Trad IRA, which reduces taxable income but doesn't reduce AGI) get you low enough to the point where you could qualify?
by Walkure
Mon Feb 19, 2024 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts taxation of US Government Securities
Replies: 19
Views: 1606

Re: Massachusetts taxation of US Government Securities

The reason that three states still have 50% thresholds is that mutual funds are usually over 50% or below 5%. If it's over 50%, you can take the tax exemption. If it's below 5%, the legal costs will be greater than the tax savings. There aren't a lot of funds with 49% of assets in US government obligations. Vanguard Federal Money Market Fund barely missed the 50% threshold in 2023, but it takes millions of dollars invested for the state taxes to be high enough to be worth a court challenge. Most people with millions in US government obligations don't have it in a money market fund. Let's hope that some high roller in CA, NY, or CT had a pile in the Vanguard MM last year and is on the phone barking at his attorney right now. One other issue...
by Walkure
Mon Feb 19, 2024 12:01 pm
Forum: Non-US Investing
Topic: Invest in Australia-Franked dividend withholding tax.
Replies: 8
Views: 2279

Re: Invest in Australia-Franked dividend withholding tax.

Here's the rub. Because Australians know this benefit all too well, it is priced in by about half of the benefit (since about half of the ownership is by Australian tax residents). This means that the benefit of franking is partly lost by way of lower growth. But there is still some benefit remaining – and it comes from the lack of this benefit to non-Australian tax residents. I don't know if I explained that well. But basically, it's not good for non-tax-residents of Australia. I'm not seeing how this is any benefit for Australians? Everyone is still paying his full marginal ordinary income rate on the dividend, it's just a question of whether the tax comes out of the dividend before or after it leaves the company. If the company doesn't ...
by Walkure
Mon Feb 19, 2024 11:53 am
Forum: Non-US Investing
Topic: Invest in Australia-Franked dividend withholding tax.
Replies: 8
Views: 2279

Re: Invest in Australia-Franked dividend withholding tax.

If you are a non-resident of Australia, the franked amount of dividends you are paid or credited are not subject to Australian income and withholding taxes. The unfranked amount will be subject to withholding tax. However, you are not entitled to any franking tax offset for franked dividends. You cannot use any franking credit attached to franked dividends to reduce the amount of tax payable on other Australian income and you cannot get a refund of the franking credit. You should not include the amount of any franked dividend or any franking credit on your Australian tax return. Some very annoying if not outright sloppy wording being used here by the Australian Tax Office. Unless Australia is even weirder than I thought (entirely possible!...
by Walkure
Mon Feb 19, 2024 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Annuity quote doesn't make sense
Replies: 12
Views: 1118

Re: Annuity quote doesn't make sense

I would assume that the higher period certain quotes are coming from a different insurer who doesn't offer the standard annuity and has a slightly more generous payout model.
by Walkure
Sat Feb 17, 2024 10:44 am
Forum: Personal Finance (Not Investing)
Topic: 1099-DIV Tax Rate question
Replies: 16
Views: 1115

Re: 1099-DIV Tax Rate question

dokeefe79 wrote: Sat Feb 17, 2024 8:27 am We are retired. We lived off cash for the entire year. The "income" reported for 2023 is entirely representative of ROTH conversions from traditional IRA while living off cash reserve. We did the same thing in 2022 (2022FY conversions were ~ $ 140K so more than we did in 2023). We are not yet 65 so we are on Obamacare and aimed ROTH conversion annual amounts towards thresholds in Obamacare (Re: subsidy amounts).
I'm still unsure as to why the ~ 50% tax rate on this specific entry.
It seems pretty likely that your Roth conversion was just up to an Obamacare threshold, and by adding the dividends you have crossed a cliff, causing you to lose some portion of a premium tax credit.
by Walkure
Sat Feb 17, 2024 8:24 am
Forum: Investing - Theory, News & General
Topic: STRIPS and the Gen X Retirement Saver
Replies: 6
Views: 1760

Re: STRIPS and the Gen X Retirement Saver

Also, when you purchase STRIPS, you are committing to pay taxes on the phantom dividends, also called imputed interest, that you would be receiving based on the rough formula (par value - your purchase price)/duration; so in the case of the $5,000 face value 8/15/2039 STRIPS that formula looks like (5000-2440)/15.5 for taxable "phantom dividends" of about $165 per year to be taxed at your Federal marginal tax rate. The potential tax complications would be a concern for me, not paying the taxes but if these make filing more of a hassle. Does the brokerage send a 1099 that shows the imputed interest that you are obligated to pay tax on or do you have to determine this on your own? Have you considered holding the STRIPS in tax-defer...
by Walkure
Fri Feb 16, 2024 9:13 pm
Forum: Personal Consumer Issues
Topic: What inferior good do you love?
Replies: 232
Views: 25543

Re: What inferior good do you love?

NightFall wrote: Wed Feb 14, 2024 9:14 pm Plastic wrap. The stuff called “Plastic Wrap” from Walmart works great. Sticks to everything. All of the name brand stuff doesn’t stick to anything except itself. So frustrating. I only buy no name “Plastic Wrap” now.
I've noticed this recently. Looked at my box of Reynolds brand and noticed a BPA-free logo. Perhaps they changed the formula and that's why it isn't clingy anymore?
I did stock up on a big roll of Costco Stretch-tite wrap before letting my membership lapse about 5 years ago. That stuff was great but eventually ran out, and I can't vouch for whether the stuff they sell now has changed like Reynolds.
by Walkure
Fri Feb 16, 2024 4:16 pm
Forum: Personal Investments
Topic: Manipulate the value of gifted stocks in Vanguard? Theft
Replies: 29
Views: 2682

Re: Manipulate the value of gifted stocks in Vanguard? Theft

I've been evaluating how extensive the damages are, and I've found that on some stocks, the gifted value reported by Vanguard doesn't match what the historical values are if I check the stock historical price on an outside ticker for that day or any of the days around it. On one stock, the gifted value reflects a price that the stock never fell anywhere near during that entire year. When I look at the account balance reports during that time, the value of the account drops by the amount matching the gifted value. Given that we're already in a theft situation, I'm just trying to make sure she was siphoning 10's of thousands and not somehow masking the value to siphon 100's of thousands. If you are really seeing a discrepancy in the reported...
by Walkure
Thu Feb 15, 2024 2:56 pm
Forum: Personal Consumer Issues
Topic: What email address is "okay/acceptable" to use then?
Replies: 168
Views: 18033

Re: What email address is "okay/acceptable" to use then?

papatart wrote: Thu Feb 15, 2024 2:24 pm I don't think what is after @ matters, be it @gmail.com, @outlook.com, @icloud.com, etc. near as much as what is before the @. But assume most folks on this forum likely don't have mikesbabygurl420@aol.com or the like as their email address.

That said, I do feel that if you have a @hotmail.com, @excite.com, or @earthlink.net address you could be significantly dating yourself and that could work against your depending on the context.
@excite.com actually wound down operations a few years back. So that one no longer exists.
by Walkure
Wed Feb 14, 2024 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Tastytrade Brokerage: Where is the Bonus Reported?
Replies: 9
Views: 722

Re: Tastytrade Brokerage: Where is the Bonus Reported?

This comes up every year: viewtopic.php?t=370981
I've never gotten the bonus reported by tastytrade/tastyworks on a 1099 - looking at my statements they coded it as something like "fee reimbursement." Just put it under Misc Income as others said.
by Walkure
Wed Feb 14, 2024 8:55 am
Forum: Investing - Theory, News & General
Topic: SCV tilt research data
Replies: 63
Views: 4749

Re: SCV tilt research data

We are told that investors have an irrational preference for positive skew and overpay for it, and an irrational distaste for negative skew and underpay for it. That's the supposed explanation for the SCV premium beyond simple compensation for risk. We are told that SCV has negative skew. If this is all true, then SCV isn't for everyone. Just as we need to analyze our overall risk tolerance, we also need to analyze our personal "taste for dimensions of risk." We should figure out if we prefer positive skew, negative skew, or no skew, and invest personally accordingly. It's odd that I can't remember an SCV thread in which the SCV advocates have said that they have a personal preference for negative skew and explained why... Still:...
by Walkure
Tue Feb 13, 2024 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Oy vey…Form 1116?
Replies: 34
Views: 6030

Re: Oy vey…Form 1116?

Metsfan91 wrote: Mon Feb 12, 2024 9:49 pm
CrazyCatLady wrote: Sat Feb 04, 2023 4:52 pm Oy vey…Form 1116?
What is "Oy vey"?
I would have thought that someone with the username Metsfan91 would be an expert in the art of performative exasperation :wink:
by Walkure
Tue Feb 13, 2024 10:43 am
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43535

Re: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF

Kbg wrote: Mon Feb 12, 2024 10:05 pm
kalarama wrote: Mon Feb 12, 2024 8:14 pm seems like BOXX's bigger advantage is to tax defer the income for as long as you want (assuming they continue to not do a distribution) as well as get long term capital gains if held over a year.
This. It's the tax benefit and associated known math we can all do for our personal tax situations.

Lastly, I don't really care what BOXX or our personal box spreads have been achieving. The market is changing due to the fact BOXX is now exploiting the method. Eventually we will arrive (or have arrived) at a new market efficiency that will equalize it all...no free lunches for long.
Until the Treasury starts funding the national debt by shorting boxes because it's cheaper than auctioning T-bills! :twisted:
by Walkure
Mon Feb 12, 2024 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: We get double tax
Replies: 21
Views: 1519

Re: We get double tax

W-2: 37,700 LTCG: 289,250 AGI = W-2 + LTCG - STD deduction Cap gain Tax: (AGI - 89,250) * 15% = 31,500 Fed Tax: W-2 - 27,700 = 10,000 * 10% = 1,000 Okay, got it. You're defining the cap gain tax weirdly in terms of AGI. It's really (LTCG - ($89,250 - W-2 less SD to a min of $0)) * 15%. In this case, it's not really getting double taxed on the W-2 income, it's the W-2 income pushing LTCG that was being taxed at 0% into being single taxed at 15%. But the ultimate effect is a 25% marginal rate on each dollar of W-2 income. Also, probably too late now, but you've likely figured out that you could have saved a bundle of taxes if you had just sold half last year and waited until January to sell the rest of the gains. Correct. Totally understand ...
by Walkure
Mon Feb 12, 2024 1:36 pm
Forum: Personal Investments
Topic: Arizona tax payers using QCD
Replies: 9
Views: 1105

Re: Arizona tax payers using QCD

Almost there wrote: Mon Feb 12, 2024 1:29 pm Called the dept of revenue and was informed that I can use the $300 when doing my AZ taxes.
The issue flagged by Alan S. above is that of course AZ will let you claim a tax credit for it, but that actually doing so will cause it to cease to be a QCD for federal purposes.
by Walkure
Mon Feb 12, 2024 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: We get double tax
Replies: 21
Views: 1519

Re: We get double tax

Tech wrote: Mon Feb 12, 2024 12:44 pm W-2: 37,700
LTCG: 289,250
AGI = W-2 + LTCG - STD deduction
Cap gain Tax: (AGI - 89,250) * 15% = 31,500
Fed Tax: W-2 - 27,700 = 10,000 * 10% = 1,000
Okay, got it. You're defining the cap gain tax weirdly in terms of AGI. It's really (LTCG - ($89,250 - W-2 less SD to a min of $0)) * 15%.

In this case, it's not really getting double taxed on the W-2 income, it's the W-2 income pushing LTCG that was being taxed at 0% into being single taxed at 15%. But the ultimate effect is a 25% marginal rate on each dollar of W-2 income. Also, probably too late now, but you've likely figured out that you could have saved a bundle of taxes if you had just sold half last year and waited until January to sell the rest of the gains.