Search found 828 matches

by not4me
Wed Jun 03, 2020 3:48 pm
Forum: Investing - Theory, News & General
Topic: Concrete benefits to deferring taxes
Replies: 25
Views: 1410

Re: Concrete benefits to deferring taxes

I wasn't clear on your math exactly. Are you saying that the 5% is earned on the last day of the year, the 10% tax only taken out & rest stays invested the next year? or all the 5% gain taken out? Depending on your answer, might also work thru a solution where the return is great than the tax rate. ...
by not4me
Tue Jun 02, 2020 12:34 pm
Forum: Investing - Theory, News & General
Topic: Corporate bond equity like exposure
Replies: 8
Views: 591

Re: Corporate bond equity like exposure

All of my corporate bonds are held in my VWIAX, VFIDX and VUSFX Holdings, which hold about 80% “A” or better quality debt. I have observed that in equity market declines “quality” companies generally experience lower declines than the overall market, so my fixed income holdings should probably be c...
by not4me
Mon Jun 01, 2020 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Land Purchase Possible or Forget About It?
Replies: 30
Views: 3642

Re: Land Purchase Possible or Forget About It?

This seems to be more personality/family dynamics than financial, but to keep with board guidelines will post mostly about the financial aspects. Just remember this has emotional impacts on all the players – not just you. I don’t think of a reason for you to talk to the realtor. You mentioned the se...
by not4me
Mon Jun 01, 2020 4:06 pm
Forum: Investing - Theory, News & General
Topic: WSJ: Individual investors get burned by collapse of complex securities
Replies: 44
Views: 4521

Re: WSJ: Individual investors get burned by collapse of complex securities

The difference could be that you could "buy and hold" your ETF, waiting for the market to recover. It seems like the investors in these ETN's were not aware that the bank could redeem the note at any point, and the bank could recreate the ETN at a later date. Larry Swedroe is also quoted, and to pa...
by not4me
Mon Jun 01, 2020 3:59 pm
Forum: Investing - Theory, News & General
Topic: Same issuer, different preferreds. Is it a wash sale?
Replies: 2
Views: 214

Re: Same issuer, different preferreds. Is it a wash sale?

I don't think there is a generic answer. I've seen some series that have very minimal differences, but others vastly different. There is usually a reason why there are different series & so perhaps someone could argue that alone makes it not a wash sale. I personally tend to be conservative & avoid ...
by not4me
Wed May 27, 2020 12:54 pm
Forum: Investing - Theory, News & General
Topic: I don't understand stock buybacks
Replies: 169
Views: 9119

Re: I don't understand stock buybacks

Don't forget all the dividends paid out over the years. Dividends don't bump the price, but actually put a bit of a drain on the price each time it's paid out. It's only because it's relatively small that it's often barely noticed. Anyway, usually when company uses extra cash for dividends or buy b...
by not4me
Tue May 26, 2020 4:52 pm
Forum: Investing - Theory, News & General
Topic: I don't understand stock buybacks
Replies: 169
Views: 9119

Re: I don't understand stock buybacks

Even with the benefit of hindsight, we can only speculate how things would have been different if Boeing had NOT done buybacks. How would that cash have been used? Did the per share metric keep the problems masked a bit -- thus, avoiding a decrease in demand? Of note, executive compensation often (...
by not4me
Tue May 26, 2020 3:56 pm
Forum: Investing - Theory, News & General
Topic: I don't understand stock buybacks
Replies: 169
Views: 9119

Re: I don't understand stock buybacks

What causes share prices to go up in general? Demand for the shares. If a company is in the market for a huge dollar amount, the price of the shares HAS to rise. Why would market cap stay the same? Market cap and book value don't fluctuate perfectly in tandem and aren't synonyms. Also, most of the ...
by not4me
Thu May 21, 2020 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Real Estate/trust
Replies: 3
Views: 369

Re: Real Estate/trust

My reply won't be as targeted as your main question, but rather your broader issue. I'd approach in a variety of ways, including what you've already done. From experience, I know that as a landowner it is not unusual to get unsolicited mail wanting to buy property. These are usually a waste of time ...
by not4me
Tue May 19, 2020 3:18 pm
Forum: Investing - Theory, News & General
Topic: BDREX - broadstone real estate access fund
Replies: 7
Views: 437

Re: BDREX - blackstone real estate access fund

I'm not familiar with the fund, but did think you might want to clarify this is "Broadstone", not Blackstone. Although I don't think that will change opinions....
by not4me
Tue May 19, 2020 3:16 pm
Forum: Personal Investments
Topic: Individual stock for son's birthday
Replies: 54
Views: 2052

Re: Individual stock for son's birthday

I was thinking of something "fun." My son already has a diversified ETF portfolio. Any ideas for individual stocks? I didn't see mention of son's age, although I think most are thinking a minor/juvenile. Others are thinking this is a teaching opportunity. By "fun", you might mean along lines of a g...
by not4me
Tue May 19, 2020 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts, k1s, and state taxes
Replies: 9
Views: 359

Re: Trusts, k1s, and state taxes

Clarifying questions... there are really 2 roles at play: 1) as trustee; 2) recipient of K1. Is your spouse a (co-)trustee for only #2 & #3? Has #1 now been closed? Was all income received by the respective trusts distributed in year received (that is, no income retained)?
by not4me
Tue May 19, 2020 11:09 am
Forum: Personal Investments
Topic: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s
Replies: 32
Views: 2196

Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

I'm newly aware that when one parent dies, only half the account is stepped up in cost basis -- has anyone seen how this works? tamara I'll take a shot, but maybe missing your specific question. 1st of all, not all assets will get a stepped up basis. For example, the annuities. But for the taxable ...
by not4me
Mon May 11, 2020 11:06 am
Forum: Personal Investments
Topic: Helping Parents with Retirement [Updated - have annuity questions]
Replies: 49
Views: 6056

Re: Helping Parents with Retirement

Here is what we are thinking of doing. Any feedback on this plan? * Do a 1035 exchange of the IRA annuity (#1) into a vanguard IRA, and invest in a 3 fund (or less — e.g. Vanguard Balanced Index fund) portfolio. * Should I wait until the end of the Contingent Deferred Sales Charge (8/18/2020)? * Su...
by not4me
Thu May 07, 2020 6:54 am
Forum: Personal Investments
Topic: TIAA Real Estate fund during pandemic
Replies: 23
Views: 945

Re: TIAA Real Estate fund during pandemic

I believe this fund adjusts periodically for appraisals on the real estate correct? The fund holds the real estate directly? The fund sometimes holds REITs as direct real estate proxies, usually only low-double-digit percentages. Otherwise it directly invests in real estate. The frequency of apprai...
by not4me
Wed May 06, 2020 12:02 pm
Forum: Personal Investments
Topic: Preferred stock/bond with no market? I want out
Replies: 17
Views: 1603

Re: Preferred stock/bond with no market? I want out

I didn't see where your IRA was, but I'd call them and ask for ideas. I don't recall seeing it done before in a IRA, but some brokers will actually buy a similar worthless asset for $1. Outside an IRA, you can then use as capital loss. Inside, I assume no impact -- including no more harm than trashi...
by not4me
Wed May 06, 2020 11:56 am
Forum: Personal Investments
Topic: Death Benefit -Annuity Inheritance
Replies: 38
Views: 2009

Re: Death Benefit -Annuity Inheritance

So the money I am getting is from a non qualified annuity. I had the option to take a lump sum payment just north of $43,000 or take 3 annual payments of $15,404 for the next 3 years. I have decided to take the 3 payments annually and the main reason is for tax purposes. By taking this annual payme...
by not4me
Tue May 05, 2020 8:11 am
Forum: Personal Investments
Topic: Death Benefit -Annuity Inheritance
Replies: 38
Views: 2009

Re: Death Benefit -Annuity Inheritance

You are correct that this is a death benefit so will I just pay ordinary income tax on it? There are a wide variety of annuities & so none of us can say for sure. Transamerica can & should send you something in writing at some point. Of the $43751, I would expect that at least some of it is taxable...
by not4me
Tue May 05, 2020 7:50 am
Forum: Personal Investments
Topic: Anyone use Acretrader?
Replies: 6
Views: 476

Re: Anyone use Acretrader?

I don't have direct experience, but have considered in the past. It may have changed, so validate anything I say. I'll give them the benfit of the doubt & say they are honestly trying to do something good. I hope it becomes something good. But I passed. They have good info on general topic of farmla...
by not4me
Tue May 05, 2020 7:39 am
Forum: Personal Investments
Topic: Inherited Portfolio Review
Replies: 3
Views: 373

Re: Inherited Portfolio Review

These funds are quite often found in 401ks and/or sold by financial advisors; is that the case here? If YOU inherited (not your mother) from your Dad, you should have gotten a step-up in basis & can re-allocate into funds you prefer. If these are still in a 401k (or rolled into a IRA), you can re-al...
by not4me
Tue May 05, 2020 7:29 am
Forum: Personal Investments
Topic: Death Benefit -Annuity Inheritance
Replies: 38
Views: 2009

Re: Annuity Inheritance

Great points...I will call tomorrow and see what is taxable and also see if anything is eligible to roll over. I will report what I find out You may want to clarify exactly what you are inheriting. My 1st thought was that you were inheriting an annuity; after re-reading your 1st post I think you ma...
by not4me
Fri May 01, 2020 4:48 pm
Forum: Investing - Theory, News & General
Topic: question re: stock based compensation and buybacks
Replies: 6
Views: 240

Re: question re: stock based compensation and buybacks

I can't tell if you are looking at the broad subject of stock based compensation or focused on just RSUs. There are a wide range of compensation packages from one company to others, short term incentive vs long term, executive vs company wide etc. Some result in actual stock ownership, others the ca...
by not4me
Fri May 01, 2020 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Right Time to 1035 Exchange?
Replies: 7
Views: 397

Re: Right Time to 1035 Exchange?

So maybe I'm not understanding this right... If you are in the hole, then why bother with a 1035 exchange? AFAIK if there are no gains on your WL policy then cashing it out will not generate any taxes. So why not just cash it out and invest it in a low-cost tax-efficient way going forward? My 2 cen...
by not4me
Fri May 01, 2020 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Sibling inheritance of Traditional IRA - sharing with other siblings
Replies: 31
Views: 1991

Re: Sibling inheritance of Traditional IRA - sharing with other siblings

It sounds as if the siblings largely get along & that is a big help. I hope it stays that way. In addition to what has been offered, I would suggest some written understanding of how this will work. The resulting distribution will be affected by how it is invested & when withdrawn. I would think it...
by not4me
Fri May 01, 2020 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Right Time to 1035 Exchange?
Replies: 7
Views: 397

Re: Right Time to 1035 Exchange?

In the early part of my career, I was talked into buying by WL Insurance. A projected 3-5% lifetime return with downside protection made sense to someone who had never earned real money before, knew nothing about investing, and had little time for anything (including sleeping, socializing, or finan...
by not4me
Fri May 01, 2020 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Sibling inheritance of Traditional IRA - sharing with other siblings
Replies: 31
Views: 1991

Re: Sibling inheritance of Traditional IRA - sharing with other siblings

It sounds as if the siblings largely get along & that is a big help. I hope it stays that way. In addition to what has been offered, I would suggest some written understanding of how this will work. The resulting distribution will be affected by how it is invested & when withdrawn. I would think it ...
by not4me
Fri May 01, 2020 11:37 am
Forum: Personal Investments
Topic: Inherited IRA and non-qual variable annuity
Replies: 11
Views: 471

Re: Inherited IRA and non-qual variable annuity

I think you might want to consult irs pub 590-b. I believe spouse has option to be considered an eligible beneficiary, but must be handled a certain way. I'm assuming this was a traditional IRA & not a previously inherited one...correct? For the annuity, I thought it would depend on whether decedent...
by not4me
Fri Apr 24, 2020 2:32 pm
Forum: Personal Investments
Topic: Beneficiary Annuity - 1035 exchange options - help for relative newbie
Replies: 20
Views: 523

Re: Beneficiary Annuity - 1035 exchange options - help for relative newbie

Sorry for your loss. You sound as if you have a reasonably good grasp on your options & I bet you are doing better than you feel you are. I'll add another possibility that might work. My experience has been that one persons annuity has some differences from another persons. So, you are smart to veri...
by not4me
Thu Apr 23, 2020 10:01 am
Forum: Personal Investments
Topic: Selling land for same price purchased
Replies: 2
Views: 469

Re: Selling land for same price purchased

This is probably a dumb question, but if you sell a piece of property (land) for the same price you purchased it for, will any of that money be taxed? Im guessing not, but wanted to be double sure. Not a dumb question at all, but you may want to look a bit closer. Generally, when you buy/sell prope...
by not4me
Thu Apr 23, 2020 8:07 am
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 536
Views: 35618

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

If you believe that the shares of a company do not fall in price, all else being equal (a very important point lost by many considering this issue), after payment of a dividend, then you must believe that dividends are somehow 'free money'. Note I ADDED the word 'must' to your original statement --...
by not4me
Mon Apr 20, 2020 10:53 am
Forum: Investing - Theory, News & General
Topic: Does dividend schedule make a big difference?
Replies: 11
Views: 2171

Re: Does dividend schedule make a big difference?

Some people claim this makes a difference in long term growth. I fail to understand why it would matter. Your title says 'big' difference, but your question doesn't. It will make a difference, whether good or bad. Might want to read on "dollar cost averaging" & compare to lump sum investing. There ...
by not4me
Mon Apr 20, 2020 8:05 am
Forum: Investing - Theory, News & General
Topic: The effect of Supply and Demand on a stock
Replies: 4
Views: 245

Re: The effect of Supply and Demand on a stock

Are companies with smaller market capitalization more susceptible to drastic swings in price based on demand. BUT Comerica is the higher priced stock. Is your bottom line question the 1st line I quoted? If so, as a general statement, I'd say "no". There are many factors & market cap matters, but ca...
by not4me
Mon Apr 20, 2020 7:57 am
Forum: Investing - Theory, News & General
Topic: Does dividend schedule make a big difference?
Replies: 11
Views: 2171

Re: Does dividend schedule make a big difference?

Some people claim this makes a difference in long term growth. I fail to understand why it would matter. Your title says 'big' difference, but your question doesn't. It will make a difference, whether good or bad. Might want to read on "dollar cost averaging" & compare to lump sum investing. There ...
by not4me
Mon Apr 20, 2020 7:50 am
Forum: Personal Consumer Issues
Topic: Growing Fruit and Vegetables
Replies: 30
Views: 1859

Re: Growing Fruit and Vegetables

Hard to say because of variables such as your taste preference & access to "good" produce. For example, you may have a nearby farmers market that can meet what you grow quality wise. Also, your soil, sun, etc will affect output &/or quality. But in general, in your region lettuce, radishes won't mak...
by not4me
Thu Apr 16, 2020 10:29 am
Forum: Investing - Theory, News & General
Topic: Worried about the future of REITs
Replies: 62
Views: 4466

Re: Worried about the future of REITs

I chose REET due to its global diversity and low cost. At the time, it also traded free on the TD platform, although that is no longer relevant. As a point of reference, I just went to morningstar & did a ytd chart & hopefully copied these down right: REET -28%, VNQ! -26.86% (Vanguard's Global reit...
by not4me
Thu Apr 16, 2020 9:48 am
Forum: Personal Investments
Topic: Ginnie Mae yield?
Replies: 6
Views: 546

Re: Ginnie Mae yield?

How do I compare GNMA (vfiix) yield to other bonds and money markets. Does the published yield of 1.99% include partial principle payments? Does that effect share price? Overall, opinions on vfiix as safe place to park money is appreciated. I'm guessing when you say "published yield" you are lookin...
by not4me
Thu Apr 16, 2020 9:38 am
Forum: Investing - Theory, News & General
Topic: Short term TIPS
Replies: 7
Views: 743

Re: Short term TIPS

Vanguard has etf for short term TIPS, but when I try to find individual ones to buy, I can’t find any, shortest being 5 years What am I missing?? This was intriguing to me so I went & pretended to be a buyer, looking for any LESS than 5 years. Got a list of several. Perhaps there was a problem with...
by not4me
Thu Apr 16, 2020 9:31 am
Forum: Investing - Theory, News & General
Topic: Worried about the future of REITs
Replies: 62
Views: 4466

Re: Worried about the future of REITs

I'm wondering if I should sell REET and replace it with something else. Maybe bonds for now, and stocks in 3 months. What does the collective wisdom of the board think about the future of REITs? It's usually interesting to me to skim thru threads on reits and/or real estate as they often seem to be...
by not4me
Thu Apr 16, 2020 9:11 am
Forum: Investing - Theory, News & General
Topic: Thinly Traded ETFs
Replies: 31
Views: 1521

Re: Thinly Traded ETFs

Yesterday I wanted to sell 2000 shares of XYZ. The highest bid was for 500 shares. What is the best way to place the sell order? a) Marketable limit order for the entire 2000 shares and what would that limit be? b) Break the buy into pieces that are each smaller than the best bid and place a market...
by not4me
Thu Apr 16, 2020 8:58 am
Forum: Personal Investments
Topic: International Growth (VWIGX) Outperformance
Replies: 28
Views: 1371

Re: International Growth (VWIGX) Outperformance

irishguy wrote:
Tue Apr 14, 2020 4:00 pm
What makes this fund outperform since inception nearly 40 years ago and recently as well?

Any thoughts if I'm missing something here??
I didn't go back & look at the 40 years, but initial thought is that the explanation is in the title. Growth has been outperforming value for a while.
by not4me
Thu Apr 16, 2020 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Merger and 1099B Reporting
Replies: 3
Views: 154

Re: Merger and 1099B Reporting

Mergers can vary from case to case & I'm not familiar with this one. MLPs/K1s bring in a variety of possible complications. Tax treatment should have been addressed in the prospectus though. Sometimes, investors have options as to how shares are converted, which again makes it hard to say what shoul...
by not4me
Thu Apr 16, 2020 8:17 am
Forum: Personal Investments
Topic: redemption of public warrants
Replies: 1
Views: 181

Re: redemption of public warrants

mainly bumping this...I skimmed the article & it looked to me that perhaps you are now the proud owner of some shares (as of 4/13 redemption date). Since this seems to be what you originally wanted, you may have just taken the longer path. If you do want to 'get your money out', you'd have to sell t...
by not4me
Mon Apr 13, 2020 11:56 am
Forum: Investing - Theory, News & General
Topic: What's the Bond Market's Expectation for Future Inflation?
Replies: 54
Views: 2979

Re: What's the Bond Market's Expectation for Future Inflation?

Clearly, the bond market and professional investors (with their money on the line) are not expecting high inflation in the wake of the virus crisis. This was not at all clear to me as I first read. Reading subsequent posts I saw some points addressed, including... But as to market distortions cause...
by not4me
Thu Apr 09, 2020 10:25 am
Forum: Investing - Theory, News & General
Topic: A tale of SEC yield
Replies: 64
Views: 4190

Re: A tale of SEC yield

Then, one wonders, how is the present value/price of a bond determined? Is it not based on the present value of all future cash flows at this discount rate. Are we not now in a circle? My understanding is that this is much more complex; hoping someone will come along & confirm or correct. To get in...
by not4me
Wed Apr 08, 2020 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Financial advice for my recently widowed father in law.
Replies: 12
Views: 1116

Re: Financial advice for my recently widowed father in law.

This may be outside of what you are asking about, but might be a consideration even as it delves somewhat into family dynamics. I applaud you for working to ensure MIL's wishes are carried out & so I'll assume paying off the mortgage now is a given. Maybe a starting point is to say consider your FIL...
by not4me
Wed Apr 08, 2020 2:14 pm
Forum: Investing - Theory, News & General
Topic: A tale of SEC yield
Replies: 64
Views: 4190

Re: A tale of SEC yield

Likewise, I assumed price changes as bonds approach maturity would be uniform over the average effective maturity of the fund (4 years) and would not be a net contributor to any sudden spike in the net income of fund. That leaves only one factor that could be the significant contributor to the doub...
by not4me
Tue Apr 07, 2020 3:16 pm
Forum: Investing - Theory, News & General
Topic: A tale of SEC yield
Replies: 64
Views: 4190

Re: A tale of SEC yield

I calculated, using the SEC yield and NAV of this VWEAX fund, that income had risen 79% from March 3 to Friday but NAV had decreased by 12%. So that implied there must have been a 91% increase in anticipated defaults for the math to work. You broad line of thinking is correct. The above math is off...
by not4me
Tue Apr 07, 2020 2:21 pm
Forum: Investing - Theory, News & General
Topic: A tale of SEC yield
Replies: 64
Views: 4190

Re: A tale of SEC yield

I would re-frame your thinking on this. 1st, be sure you understand what the SEC yield is; I don’t think your conclusions are necessarily true. Much of what you may have seen in the past likely had some unspoken assumptions that cloud the issue also. Former mutual fund accountant here who had to pr...
by not4me
Tue Apr 07, 2020 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Federal tax refund: incorrect amount
Replies: 9
Views: 665

Re: Federal tax refund: incorrect amount

This was all reported properly on our tax forms, based on the W-2s that we received from both his employer and the insurer. So I don’t know why we didn’t receive the SS excess back. So two questions: 1. Should we deposit the check with the wrong amount? I am guessing yes. 2. Will we receive a lette...
by not4me
Tue Apr 07, 2020 10:18 am
Forum: Investing - Theory, News & General
Topic: A tale of SEC yield
Replies: 64
Views: 4190

Re: A tale of SEC yield

I would re-frame your thinking on this. 1st, be sure you understand what the SEC yield is; I don’t think your conclusions are necessarily true. Much of what you may have seen in the past likely had some unspoken assumptions that cloud the issue also. The SEC yield looks at the past “distribution” (m...