Search found 243 matches

by cas
Mon Feb 19, 2018 10:07 am
Forum: Investing - Help with Personal Investments
Topic: High ER funds with large cap gains - what to do ?
Replies: 10
Views: 778

Re: High ER funds with large cap gains - what to do ?

1) Figure out the capital gains tax, including state taxes , as a percent of the entire value of the fund, not just the gains. (assume that you are in the 20% combined capital gains tax bracket) <skip> This ignores the compounding and that the chance that the capital gains might trigger other thing...
by cas
Sat Feb 17, 2018 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: cybertheft from brokerage and retirement accounts after Equifax identity theft
Replies: 23
Views: 2820

Re: cybertheft from brokerage and retirement accounts after Equifax identity theft

I'm not saying that it cannot happen, but can someone give an example of an individual investor who has lost all or part of their brokerage account due to cyberhacking, where the investor had not done something stupid (aka shared their login with others) and where the assets were not recovered or r...
by cas
Sat Feb 17, 2018 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: 1099B and tax impact
Replies: 4
Views: 315

Re: 1099B and tax impact

Another thought.... AMT and NIIT are taxes that generally occur at higher incomes. If you happen to have a more modest income and part of the income is Social Security, capital gains can interact with the SS income in unpleasant ways, causing very high marginal tax rate "humps". If you are receiving...
by cas
Sat Feb 17, 2018 11:49 am
Forum: Personal Finance (Not Investing)
Topic: 1099B and tax impact
Replies: 4
Views: 315

Re: 1099B and tax impact

livesoft is right that it is necessary to compare before-and-after 1040s. But, a couple of things to check: Look at your Form 8949/Schedule D and make sure that cost basis and purchase/sale dates are entered correctly. (If Turbotax incorrectly thinks it is a short term gain of the whole $10,000, tha...
by cas
Wed Feb 14, 2018 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Helping Mom with Taxes
Replies: 43
Views: 2001

Re: Helping Mom with Taxes

Is the income from the A/B trust reported under her name, or is a separate trust return prepared, with a K-1 to assign the income to her? This would be my big concern, too. (I am not a lawyer or an accountant, and trusts can take many forms, so the information below is based only on my limited expe...
by cas
Wed Feb 07, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Helping parents reduce taxes (dividends)
Replies: 27
Views: 1400

Re: Helping parents reduce taxes (dividends)

My mom is turning 70 and has always had a modest salary from teaching She has been telling me for a few years of owing a lot in taxes each April (Bold added by me.) Having written a long post on marginal tax rates, it occurs to me that perhaps I should have first taken the comment about "owing a lo...
by cas
Wed Feb 07, 2018 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Helping parents reduce taxes (dividends)
Replies: 27
Views: 1400

Re: Helping parents reduce taxes (dividends)

My mom is turning 70 and has always had a modest salary from teaching She has been telling me for a few years of owing a lot in taxes each April, presumably from all of the dividends being thrown-off in her taxable account. (Bold added by me.) There are some hints in what you write that make me won...
by cas
Mon Feb 05, 2018 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: 2017: A hard, complicated time, i.e. Death & Taxes
Replies: 15
Views: 1791

Re: 2017: A hard, complicated time, i.e. Death & Taxes

It’s somewhat confusing on how to reply to posts so I apologize for the way I have replied, where it’s hard to read who wrote what part...... I did the copy and paste thing, but can’t figure out the highlighting in different color (beige) part. Any simple instructions on the correct format for repl...
by cas
Mon Feb 05, 2018 8:14 am
Forum: Personal Consumer Issues
Topic: Equifax Unlocked Me And IRS Account
Replies: 5
Views: 861

Re: Equifax Unlocked Me And IRS Account

I don't know if this will help or not, but this IRS web page gives details on the process for getting access to various IRS web services. There are a lot of finicky details. "Secure Access: How to Register for Certain Online Self-Help Tools" https://www.irs.gov/individuals/secure-access-how-to-regis...
by cas
Fri Feb 02, 2018 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Can an inherited Capital Loss (not Gain) from a Trust be written off of an individual’s Capital Gain?
Replies: 3
Views: 288

Re: Can an inherited Capital Loss (not Gain) from a Trust be written off of an individual’s Capital Gain?

The reason I'm thinking it will qualify is that both Uncle Sam and the State Tax Authorities are interested in taxing WHO got the money, so any proceeds that I obtain from my father's Trust will be tracked via my SS#. So in the end, the Tax authorities will see both a capital gains and a capital lo...
by cas
Fri Feb 02, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: I BONDS Maturing in 2030
Replies: 42
Views: 2727

Re: I BONDS Maturing in 2030

In the following example this is the better course as long as the marginal tax rate at maturity is less than 48%. My elderly parents (I do their taxes) had 1986 EE Savings bonds mature in 2016. I had been so pleased about the 4% interest they were earning until I did their taxes. I've forgotten the...
by cas
Wed Jan 31, 2018 7:05 pm
Forum: Investing - Theory, News & General
Topic: "Index funds will, by their very definition, return the benchmark and be the median return."
Replies: 22
Views: 2386

Re: "Index funds will, by their very definition, return the benchmark and be the median return."

I remember reading research papers stating that more than 80% of the actively managed funds lagged behind S&P index. But, unfortunately, I can't find those papers at the moment. I'll continue looking for the references but if anyone among the bh group here has those references handy, could you plea...
by cas
Tue Jan 30, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Steps for Redeeming/Reporting/Paying interest & penalties for inherited matured EE Series Savings Bonds
Replies: 3
Views: 284

Re: Steps for Redeeming/Reporting/Paying interest & penalties for inherited matured EE Series Savings Bonds

I am not any kind of expert, so don't go just on my word, but... I think you also have the option of reporting all the accrued EE bond interest on your father's final income tax return, if that has not yet been filed. In cases where somebody dies early in the year without much income or where there ...
by cas
Tue Jan 30, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Trust account at Vanguard with 2 trustees with separate logins
Replies: 15
Views: 1161

Re: Trust account at Vanguard with 2 trustees with separate logins

But all that would seem to be a separate issue from the issue of who can see act/on a trust account (say I, in my ignorance.) To me, it's all related. The owner of the assets should have all the rights that a owner usually has--buy, sell, trade, give away, pay taxes on it. Well, yes, but ... legall...
by cas
Mon Jan 29, 2018 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Trust account at Vanguard with 2 trustees with separate logins
Replies: 15
Views: 1161

Re: Trust account at Vanguard with 2 trustees with separate logins

We have a joint trust account at Vanguard which is tagged with my SSN. The Vanguard rep who last helped us says there can only be one SSN attached to each account. Is this true? We will be opening a new account to hold an inheritance DH is receiving. Our lawyer suggests it be put into the trust acc...
by cas
Sun Jan 28, 2018 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard tax exempt nj bond fund taxed?
Replies: 5
Views: 304

Re: Vanguard tax exempt nj bond fund taxed?

The item you are seeing on the 1099-DIV is (technically) "capital gains distributions" rather than "capital gains." The distinction is a surprise to a lot of people new to taxable accounts. Both "capital gains" and "capital gains distributions" are taxable. The distinction is what jhfenton said in h...
by cas
Sun Jan 28, 2018 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Identity Theft - Social Security Claim & Green Dot Bank Debit
Replies: 15
Views: 1692

Re: Identity Theft - Social Security Claim & Green Dot Bank Debit

I do have a mySSA account, protected with a unique password, fwiw. It did not protect me in this instance, and I have been told by an SSA employee that people can file for benefits online WITHOUT a mySSA account. I have not verified this. Amazingly, I received a SS 1099 on 1/5/2018. I've never ever...
by cas
Sat Jan 27, 2018 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with large stock holding in taxable account
Replies: 32
Views: 2326

Re: What to do with large stock holding in taxable account

This is a drop in the bucket, but easy and something I've seen a lot of people (including me) miss: Does he, by any chance, have the dividends of the Home Depot set to reinvest back into more Home Depot shares? If so ... stop ... and invest the dividends into something diversifying. That doesn't sol...
by cas
Sat Jan 27, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with large stock holding in taxable account
Replies: 32
Views: 2326

Re: What to do with large stock holding in taxable account

. As far as I can understand after a quick look at the tax laws, his two options are to sell a little every year and pay 15% cap gains tax, or it all at once to get immediate diversification and pay 20% cap gains tax. Selling it all at once (or in very large chunks) could cause several other taxes ...
by cas
Sat Jan 27, 2018 7:30 am
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax Question
Replies: 8
Views: 1180

Re: Capital Gains Tax Question

It certainly puts a different spin on the 20 percent maximum capital gains tax if it then lifts your other income into a higher tax rate. LTCG and Qualified dividends don't lift your ordinary income into higher brackets. The LTCG/QDI "float on top" of the ordinary income. As boridi pointed out, the...
by cas
Fri Jan 26, 2018 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Sanity check of SS with less than 35 years earnings
Replies: 31
Views: 3616

Re: Sanity check of SS with less than 35 years earnings

Michael Kitces had an article on this topic that I remember reading not too long ago. I think it was this one: "The Impact Of Early Retirement On Projected Social Security Benefits" https://www.kitces.com/blog/calculating-how-much-projected-social-security-benefits-statement-reduced-for-early-retire...
by cas
Fri Jan 26, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Liquidate or distribute stocks in settling an estate?
Replies: 15
Views: 694

Re: Liquidate or distribute stocks in settling an estate?

I am no kind of expert, but my (very amateur) understanding is that the rules are (or at least were at one point) that the cost basis will be stepped up to either the date of death *or* an alternate valuation date that is 6 months after the date of death, assuming the attorney/accountant/somebody ch...
by cas
Thu Jan 25, 2018 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Question on unified estate tax credit
Replies: 4
Views: 192

Re: Question on unified estate tax credit

My sons are working on first home purchases and need help with the down payment. It is my understanding that we (my wife and I) can gift them 15K each year and not owe gift tax. They will probably need more than that for the down payment. You can give each son $15K per year and not have to file Gif...
by cas
Sun Jan 14, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning (Input Requested)
Replies: 14
Views: 1261

Re: Estate Planning (Input Requested)

Any experience with issues using powers of attorney that are more than a few years old, etc. On the POA issue, the attorney is (probably) correct. The "probably" is in there because the difficulties are apparently somewhat dependent on state law. I don't have any personal experience with POAs being...
by cas
Fri Jan 12, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Parental portfolio: help simplify and tune up
Replies: 16
Views: 1346

Re: Parental portfolio: help simplify and tune up

This isn't really what you asked, but I had a couple of thoughts reading this thread: 1. Are you and/or your parents familiar with IRMAA (Income Related Medicare Adjustment Amount) and how it works? Their premiums for Medicare Part B and Part D (if they use Pt D rather than having employer-based ret...
by cas
Fri Jan 12, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: Percentage of VWITX subject to AMT
Replies: 8
Views: 377

Re: Percentage of VWITX subject to AMT

If you go to the Fund Snapshot page for a Vanguard tax-exempt fund, then click on the "Portfolio & Management" tab, one of the items listed is the % of the fund's income that is subject to the AMT (as of whatever date is listed at the top of that table). For example, the info on VWIUX would be found...
by cas
Thu Jan 11, 2018 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Equifax issues
Replies: 16
Views: 1417

Re: Equifax issues

I gues i will have to mail them my info, If what you are trying to accomplish is to get your annual credit report via annualcreditreport.com, many people have discovered that they don't have to mail in the sensitive info (despite what Equifax says). Just use the annualcreditreport.com automated pho...
by cas
Wed Jan 10, 2018 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Can't move online $$ from Trust to JTROS at VG
Replies: 13
Views: 550

Re: Can't move online $$ from Trust to JTROS at VG

A possible workaround is to make each of the trust accounts individual accounts, and set the POD to each respective trusts. An extra hassle to put in place now, but seems like it might be a solution. In this scenario, I think the ability would be lost for a co-trustee or successor trustee to manage...
by cas
Wed Jan 10, 2018 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Can't move online $$ from Trust to JTROS at VG
Replies: 13
Views: 550

Re: Can't move online $$ from Trust to JTROS at VG

So, is your external bank account a joint account? If so, why would Vanguard transfer money from an individual trust to a joint external account but not a joint Vanguard account? I looked into linking my parents' individual revocable trusts (at Vanguard) to their joint (JTWROS) bank account about a...
by cas
Mon Jan 08, 2018 8:04 am
Forum: Personal Finance (Not Investing)
Topic: ID theft and check cashing fraud
Replies: 97
Views: 5987

Re: ID theft and check cashing fraud

A couple of random thoughts: 1. (This one is paranoid, but shorter, so I'll write it first) Do you think you may be missing any mail from your mailbox? Or that the thief (or the thief's network, as the case may be) may have managed to sign themselves up for that USPS "Informed Delivery" service wher...
by cas
Mon Jan 08, 2018 7:16 am
Forum: Personal Finance (Not Investing)
Topic: locking credit vs. credit freeze
Replies: 7
Views: 625

Re: locking credit vs. credit freeze

From Brian Krebs of Krebs on Security ("Equifax Breach: Setting the Record Straight" https://krebsonsecurity.com/2017/09/equifax-breach-setting-the-record-straight/ ) As I wrote in a Sept. 11 Q&A about the Equifax breach, I take strong exception to the credit bureaus’ increasing use of the term “cre...
by cas
Sun Jan 07, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: ID theft and check cashing fraud
Replies: 97
Views: 5987

Re: ID theft and check cashing fraud

The 3rd one wouldn't allow the freeze to be placed online. It requires snail mail! Maddening. Chexsystems is next. Back after the Equifax hack, when a lot of people were attempting to freeze their credit reports, I seem to recall quite a few people who weren't able to place the freeze online, but w...
by cas
Sun Jan 07, 2018 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Managing and Investing Trust Assets
Replies: 16
Views: 1114

Re: Managing and Investing Trust Assets

... thus helps keep our estate under the exemption, and use (irrevocable) trust money for long-term wealth creation? i.e., make all capital purchases and investments with trust money, thus sheltering from estate tax most of the assets expected to be transferred to the next generation. You may well ...
by cas
Fri Jan 05, 2018 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Managing and Investing Trust Assets
Replies: 16
Views: 1114

Re: Managing and Investing Trust Assets

I'm not any kind of expert, but... House in trust: back a decade or more ago, my parents were working with an estate planning attorney to set up a plan. One issue was how to pass down the family farm (which includes a house.) The estate planning attorney was all gung-ho to do something involving one...
by cas
Thu Jan 04, 2018 8:46 am
Forum: Personal Finance (Not Investing)
Topic: ID theft and check cashing fraud
Replies: 97
Views: 5987

Re: ID theft and check cashing fraud

I've never used it, so I don't know how useful it is, but the FTC has a whole website dedicated to helping people "report and recover from" identity theft: https://www.identitytheft.gov/
by cas
Thu Jan 04, 2018 8:17 am
Forum: Personal Finance (Not Investing)
Topic: ID theft and check cashing fraud
Replies: 97
Views: 5987

Re: ID theft and check cashing fraud

I'm sorry for your troubles. If you have not read it already, you may find the Boglehead's wiki article "Credit Freeze" useful: https://www.bogleheads.org/wiki/Credit_freeze Whoever did this seems to be rather knowledgeable about exactly what to do with each piece of information, plus possibly be li...
by cas
Sun Dec 31, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Wells Fargo Target Retirement 2030 [fund drop due to distribution question]
Replies: 9
Views: 545

Re: Wells Fargo Target Retirement 2030 [fund drop due to distribution question]

Here's the fund: MMIZX. Maybe I worded it incorrectly, the fund had an 18% drop in one day, and dividends were 4.48 according to this page: https://seekingalpha.com/symbol/MMIZX/key-data/dividends-and-splits The seekingalpha page seems to be using the word "dividend" incorrectly to mean "distributi...
by cas
Sun Dec 31, 2017 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Wells Fargo Target Retirement 2030 [fund drop due to distribution question]
Replies: 9
Views: 545

Re: Wells Fargo Target Retirement 2030 [fund drop due to distribution question]

An S&P 500 index fund should not have been distributing that much in capital gains distributions. S%P 500 does not pay 18% in dividends. You are right - a healthy S&P 500 fund shouldn't have that level of capital gains distributions. Nevertheless, some do. My best guess is that they are funds that ...
by cas
Sat Dec 30, 2017 4:32 pm
Forum: Personal Consumer Issues
Topic: We bought a house in June, and the ac & furnace system do not work. What should we do?
Replies: 49
Views: 3535

Re: We bought a house in June, and the ac & furnace system do not work. What should we do?

First - It is predicted to be brutally cold in Ohio - below zero lows all week. That is dangerous cold. Get the furnace fixed, or, if you can't do that in time, please drain all your pipes (otherwise you will have much worse problems than a $500 furnace repair) and seek shelter someplace with heat. ...
by cas
Sat Dec 30, 2017 7:55 am
Forum: Investing - Theory, News & General
Topic: ATTENTION: Vanguard 529s? - Better Check Your Balance(s)
Replies: 44
Views: 2910

Re: ATTENTION: Vanguard 529s? - Better Check Your Balance(s)

Checked Vanguard 529 account balances this morning and it showed there was no money in there! Money was in there yesterday and no transactions have taken place. I checked after reading your post, and can report the same situation ($0 balance for 529s where there shouldn't be). So I'm inclined to th...
by cas
Fri Dec 29, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Medicare choices unclear while still employed
Replies: 7
Views: 467

Re: Medicare choices unclear while still employed

Since nobody else has mentioned it, if you are still receiving a salary, make sure you know how the Income Related Medicare Adjustment Amount (IRMAA) would apply in your situation. I'm sure IRMAA must be discussed the book. (Medicare Pt B and D premiums go up in steps as income goes up. MAGI thresho...
by cas
Fri Dec 29, 2017 9:20 am
Forum: Personal Finance (Not Investing)
Topic: long term capital gain distribution tax
Replies: 8
Views: 630

Re: long term capital gain distribution tax

Note that if adding in the LTCG distribution causes your taxable income (Line 43 of Form 1040) to go above the ceiling for the 15% bracket, the amount of the LTCG distribution that "sticks up above" the 15% ceiling threshold will be taxed at 15%. (Or, at much higher incomes, part might be taxed at 2...
by cas
Tue Dec 26, 2017 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio for a Trust with tight requirements
Replies: 15
Views: 1034

Re: Portfolio for a Trust with tight requirements

No doubt some insurance company somewhere has figured out how to create a SPIA for an irrevocable trust, but... Technically, an irrevocable trust doesn't have a lifespan, so is it even possible for a SPIA to be purchased in the name of an irrevocable trust? Somehow the SPIA would have to "look throu...
by cas
Tue Dec 26, 2017 10:15 am
Forum: Investing - Help with Personal Investments
Topic: How much to covert to Roth?
Replies: 27
Views: 2484

Re: How much to covert to Roth?

[Edit: OP made a correction for a missed personal exemption while I was typing this. So the numbers are a bit different from what is now in the post.] My 401K rollover has been deposited into Vanguard...now just figuring out my expected taxes (please check my math) and how much to covert to Roth. 20...
by cas
Sun Dec 24, 2017 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Intentionally realize gains to offset large loss carryforward?
Replies: 8
Views: 793

Re: Intentionally realize gains to offset large loss carryforward?

His loss carryforward is still valuable. He can use $3k/year to offset his limited ordinary income (including some Roth conversion income), and the balance can offset future gains realized from rebalancing (or selling stocks if he wants his portfolio to become more conservative over time). Warning:...
by cas
Sat Dec 23, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Sell taxable while in 0% capital gains bracket (to help cost basis)?
Replies: 16
Views: 1379

Re: Sell taxable while in 0% capital gains bracket (to help cost basis)?

I do know that Vanguard will let me switch from average cost to SpecID; I tried it and it worked. When I switched to SpecID it looked something like this (sorry, don't have a screenshot): $7k Non-covered shares $4k cost at time of purchase $1k cost at time of purchase $3k cost at time of purchase $...
by cas
Sat Dec 23, 2017 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Sell taxable while in 0% capital gains bracket (to help cost basis)?
Replies: 16
Views: 1379

Re: Sell taxable while in 0% capital gains bracket (to help cost basis)?

I do not believe you can switch to Specific ID once you have started using average (or any other) basis for a fund. In another thread, I made a similar assertion, and somebody pointed out to me that the rules got more complex when covered shares were introduced. "Changing Cost Basis Methods" http:/...
by cas
Fri Dec 22, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion strategies for 2018 and beyond?
Replies: 18
Views: 2421

Re: Roth conversion strategies for 2018 and beyond?

FIREchief wrote:
Fri Dec 22, 2017 4:13 pm
It has to do with asset protection.
Thanks.
by cas
Fri Dec 22, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion strategies for 2018 and beyond?
Replies: 18
Views: 2421

Re: Roth conversion strategies for 2018 and beyond?

FIREchief wrote:
Fri Dec 22, 2017 2:09 pm
There may be a slight benefit to segregating any tIRA funds that came from ERISA plan rollovers (versus annual contributions) into a separate Roth,
FIREchief, could you elaborate a bit more on your thinking that led to the above comment?

Thanks!
by cas
Thu Dec 21, 2017 9:20 am
Forum: Personal Consumer Issues
Topic: unstoppable TransUnion spam
Replies: 6
Views: 627

Re: unstoppable TransUnion spam

Your concern, of course, is how to get rid of the spam. Unfortunately, I have no wise words about that. But here's a bit of backstory on why you are receiving it. (In particular, note this sentence at the end of Brian Kreb's article (quoting from the TrueIdentity terms of service agreement): " For t...