Search found 513 matches

by Johnsson
Wed Mar 13, 2024 7:39 am
Forum: Personal Finance (Not Investing)
Topic: How long after death to transfer assets
Replies: 33
Views: 3081

Re: How long after death to transfer assets

Some flavor of an asset manager is being real slow allowing access to funds. Everything else TOD/POD has been paid out. This financial pro has provided two times for when email paperwork for docusigning opening accounts in order to transfer funds from deceased, both of those time frames have now come and gone. This same advisor has two complaints on file. We think they compensated based upon percent of assets. How long can the finance guy string us along? Are we able to do anything to control this such as going to the firm that handles trades? We worry about what is going on with the money, if it is even there... I handled DM's estate (no lawyer) with several brokerages and more banks, with no TOD/PODs. One bank was problematic (a lot of h...
by Johnsson
Sat Mar 09, 2024 7:23 am
Forum: Personal Investments
Topic: Newly Retired: Start Roth Conversions For IRA or Not?
Replies: 39
Views: 5310

Re: Newly Retired: Start Roth Conversions For IRA or Not?

Yes, convert. I second the suggestion to use one of the retirement packages (along with your personal desire to do so) to determine how much.

Remember, tax rates increase in 2026. Federal debt is increasing by leaps and bounds so tax rates may follow suit. AND, RMDs are coming like a freight train.

Tempus fugit!!
by Johnsson
Thu Mar 07, 2024 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax alternatives?
Replies: 15
Views: 1529

Re: TurboTax alternatives?

I agree with looking into the online options (I assume online TT would be the easiest for you to use), to avoid technical difficulties exhibited by your computer.
by Johnsson
Thu Mar 07, 2024 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Pulling Out Retirement Early - Thoughts
Replies: 15
Views: 3065

Re: Pulling Out Retirement Early - Thoughts

I agree with looking into Dave Ramsey's approach...
by Johnsson
Wed Mar 06, 2024 10:35 am
Forum: Personal Finance (Not Investing)
Topic: When have you stopped saving for retirement?
Replies: 40
Views: 3886

Re: When have you stopped saving for retirement?

One comment...

We never contributed to Roths until almost ready to retire.

Please consider contributing to a Roth IRA/401k (if you aren't already), rather than a regular IRA/401k... a subject of it's own.
by Johnsson
Wed Mar 06, 2024 10:32 am
Forum: Personal Finance (Not Investing)
Topic: When have you stopped saving for retirement?
Replies: 40
Views: 3886

Re: When have you stopped saving for retirement?

I never did, but I did change the percentages. :wink:

Decrease your contribution rate to the company match. No sense is missing out on free money.

Increase back up as soon as you can.
by Johnsson
Wed Mar 06, 2024 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Yet another Roth conversion "Should I" question. How much is too much tax-deferred?
Replies: 19
Views: 2290

Re: Yet another Roth conversion "Should I" question. How much is too much tax-deferred?

I've had the same concern as you for a while and have never found a clear answer. I have finally come up with a number for us. This is what we considered in making our decision... We had close to 2mm in tax deferred and none in Roth (at age 59). We are now 62 (turning 63 so this year will hit IRMAA, for us, for 4 months in 2026). We know that tax rates will rise in 2026 (unless someone lowers them). We know the country is accruing trillions in additional debt each year. So, tax rates may rise more than already planned. We also know that once converted, money grows tax free, maybe for a long, long time. Our kids will be in higher tax brackets than we will (even with SS at 70, RMDs and dividends) so Roth's make sense for their inheritance. My...
by Johnsson
Tue Mar 05, 2024 7:47 am
Forum: Investing - Theory, News & General
Topic: New Retirement
Replies: 50
Views: 6647

Re: New Retirement

I do not prepare my return. My tax knowledge base is so limited I’m afraid I will miss something. Meeting this afternoon with a new CPA after moving to a new city in NC late last year. .... Your interaction with your CPA should be viewed as a learning experience. Spend the money for Turbotax deluxe (or equivalent) and do your taxes. Compare them with what the CPA comes up with (many use Turbotax Professional, which is similar but different) and ask them about the differences that may show up. Reading through the tax forms and understanding the interaction between the different inputs will also help you better understand how taxes are completed (it's not magic and many of us did them by hand for many years) AND make you a more savvy investo...
by Johnsson
Wed Feb 28, 2024 10:57 am
Forum: Investing - Theory, News & General
Topic: "How much should I have in my 401k" article for various ages - thoughts?
Replies: 45
Views: 6218

Re: "How much should I have in my 401k" article for various ages - thoughts?

They sound about right, for most. Though, I read this as meaning for all pre-tax monies.

We're currently converting down to approximately that number (ignoring what we'll have in Roth :wink:).

Too much in pre-tax money could be a real (taxation) weight on your shoulders!
by Johnsson
Mon Feb 26, 2024 3:43 pm
Forum: Personal Investments
Topic: Asset Allocation questions after a windfall...
Replies: 5
Views: 1510

Re: Asset Allocation questions after a windfall...

lazynovice wrote: Mon Feb 26, 2024 2:06 pm When you say you have inherited stocks with gains, you mean you have gains post the step up in cost basis, right? How significant are the gains?
Stock gains are roughly 50% of the $500k value
by Johnsson
Mon Feb 26, 2024 2:15 pm
Forum: Personal Investments
Topic: Asset Allocation questions after a windfall...
Replies: 5
Views: 1510

Re: Asset Allocation questions after a windfall...

lazynovice wrote: Mon Feb 26, 2024 2:06 pm When you say you have inherited stocks with gains, you mean you have gains post the step up in cost basis, right? How significant are the gains?
Some stepped-up (with some gains), some not stepped-up (from a trust).
by Johnsson
Mon Feb 26, 2024 2:00 pm
Forum: Personal Investments
Topic: Asset Allocation questions after a windfall...
Replies: 5
Views: 1510

Asset Allocation questions after a windfall...

We both turn 63 this year and let's assume for this discussion our expenses are about $100k per year including health ins (not including taxes $70k-ish each, this year and next) which are very lumpy with Roth conversions). No pensions. SS: DW ~$38K starting in 2028, Mine ~ $42k starting in 2031. While dealing with parents' estates (including a windfall to us), I have been somewhat neglectful of our AA, making some changes that may not have been the brightest, and am hoping for suggestions/critiques. The estates included ~40 individual stocks that I pared down to 6 with significant gains (selling winners with losers for a net wash for most of them) and some cash that I've tucked away as you'll see listed below. The remaining stocks are Bank,...
by Johnsson
Tue Feb 20, 2024 6:08 am
Forum: Personal Finance (Not Investing)
Topic: Waiver of Bond by Heir or Beneficiary Question
Replies: 6
Views: 784

Re: Waiver of Bond by Heir or Beneficiary Question

As someone who is handling an estate right now (for free), unless you don't trust the sibling and are willing to do it yourself (or pay for a professional), just sign the form.
by Johnsson
Mon Feb 19, 2024 6:10 am
Forum: Personal Finance (Not Investing)
Topic: Need advice for retirement
Replies: 35
Views: 5186

Re: Need advice for retirement

Yes, you can afford it.
by Johnsson
Mon Feb 19, 2024 5:33 am
Forum: Personal Finance (Not Investing)
Topic: What state do I file/pay taxes to, for Estate/Trust income?
Replies: 3
Views: 578

Re: What state do I file/pay taxes to, for Estate/Trust income?

bsteiner wrote: Sun Feb 18, 2024 9:08 pm How did Mom end up with a revocable trust in New Jersey? In over 40 years I’ve only seen one or two revocable trusts in New Jersey.
She and Dad each signed them in '93.
by Johnsson
Sun Feb 18, 2024 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: What state do I file/pay taxes to, for Estate/Trust income?
Replies: 3
Views: 578

What state do I file/pay taxes to, for Estate/Trust income?

I'm currently working on the taxes for Mom's Estate/Trust (joined by Section 645).

Both Estate and Trust are NJ entities, so I will be filing the 1041 to the IRS and NJ.

The K-1 (for a 50/50 split) will go to my sibling and I. Neither of us live in NJ.

To whom will I owe income taxes on earnings (divs, int and cap gains) distributed on a K-1 from Mom's Estate/Trust? NJ? My state?

My simple assumption is that I pay it to my state, with my taxes.

I tried some basic research and could not find an answer to such a basic question. I was probably not asking the right questions.

Thanks in advance!!
by Johnsson
Fri Feb 16, 2024 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Tax Reporting of Nominee Tax-Exempt Dividends
Replies: 6
Views: 358

Re: Tax Reporting of Nominee Tax-Exempt Dividends

OK, I just read through your entire post and it was helpful, here and in general. Thank you. I agree that IRS computers from the 1960s probably don't look at tax exempt income. Not a reason to do things wrong, but I guess my best attempt to do it right is to just report the lower (after paying the nominee) tax-exempt amount. And if I do get an IRS nastygram, just send a copy of the nominee 1099-Div. But hopefully nothing will get triggered. I too would like to do things correctly, but, Turbotax is at least part of my problem... and I don't want to do it by hand. I guess there's not enough people with my/our problem to force TT to make an accommodation in their software. For me it's a once and done. I can understand you looking for a better...
by Johnsson
Fri Feb 16, 2024 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Tax Reporting of Nominee Tax-Exempt Dividends
Replies: 6
Views: 358

Re: Tax Reporting of Nominee Tax-Exempt Dividends

I have a similar but different issue I couldn't figure out... viewtopic.php?p=7697980#p7697980

Mine was specific to Turbo Tax, but the logic is the same.

Apparently the IRS computers look to match up only the total number for each form (as I understand)... On 1099-DIV, the ordinary dividend total you claim matches the ordinary dividend total from the brokerage. The same goes for Interest on -INT and Proceeds on -B. Only the main entry on each.

If I understood correctly (see the link above), the tax-exempt interest/dividend is not looked at by the IRS computers... just the ordinary dividend total.

'Raycpact' helped me with this. Maybe he can confirm my understanding is correct for you.
by Johnsson
Tue Feb 06, 2024 5:24 am
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

Raycpact wrote: Mon Feb 05, 2024 6:46 pm By Jove I think he's got it.* (Apologies to My Fair Lady)

Second question, yes, all of 1099 information sent by the broker gets checked against the return.
You didn't mention 1099B. If you have gains reported after the date of death, then its very possible the basis on the sales after the date of death are not stepped up. You will need to adjust them on form 1041 if that's true.
Great. Thanks again!
by Johnsson
Mon Feb 05, 2024 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

code the second one as nominee so that it subtracts from the total. If the totals don't match you may get a cp 2000 letter. The folks handling those things treat the reported amounts as if they were chiseled in stone. OK. Please ignore my last posting. I think I get it now. Sorry, I can be slow at times. It won't let me subtract the second from the first (because it will only subtract the nominee amount from within each 1099-DIV). BUT, I think this works...? Entry #1 for the 1st 1099-DIV/Brokerage#1 will have correct pre-death income, for ALL entries. Entry #2 for the 2nd 1099-DIV/Brokerage#1 will have only the after-death ordinary dividend number. The after-death ordinary dividend number would then be entered as the nominee amount for tha...
by Johnsson
Mon Feb 05, 2024 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Bought the wrong house - Sell now or later?
Replies: 67
Views: 8283

Re: Bought the wrong house - Sell now or later?

Option 1 AND research (by contacting contractors) what it would cost to fix the 'problems' to your satisfaction.

Compare that to what you'd estimate it would cost you in money, time, aggravation and risks (e.g. not liking the new neighbors, etc...) to move.

Decide which pill would be easier to swallow.
by Johnsson
Mon Feb 05, 2024 6:02 am
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

Out of curiosity... Has anyone else had this issue and how did you deal with it? We get a few of these every year. There is no cost effective perfect way to deal with it. First, does it make a difference in the tax. Many of these do not change the tax amount. In that case we would just include everything that is reported but let the beneficiaries know there share of the amounts of income that they need to report. Most of the time we are doing an estate return and the allocable estate income is reported on the estate. It is common for the 1099's to need to get adjusted for estates because of the delays in getting tax id number for estate and probate. Second, if the amount is material we ask the client to ask for a corrected 1099. Although I...
by Johnsson
Sun Feb 04, 2024 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

Out of curiosity... Has anyone else had this issue and how did you deal with it? We get a few of these every year. There is no cost effective perfect way to deal with it. First, does it make a difference in the tax. Many of these do not change the tax amount. In that case we would just include everything that is reported but let the beneficiaries know there share of the amounts of income that they need to report. Most of the time we are doing an estate return and the allocable estate income is reported on the estate. It is common for the 1099's to need to get adjusted for estates because of the delays in getting tax id number for estate and probate. Second, if the amount is material we ask the client to ask for a corrected 1099. Although I...
by Johnsson
Sun Feb 04, 2024 7:49 am
Forum: Personal Finance (Not Investing)
Topic: 2023 Tax Year - First Big Roth Conversion - Triage Summary
Replies: 165
Views: 11173

Re: 2023 Tax Year - First Big Roth Conversion - Triage Summary

Three years ago we had most of our money in conventional IRAs/401ks. Our other money was in after-tax.

We semi retired in 2021 and started big conversions (under the premise that the sooner we do it the longer the converted funds have to grow). Now, we have about 55% of our retirement funds in Roths.

This year is our first IRMAA year (we turn 65 in 2026) and I've already converted ~2/3 of what we plan to do this year. I'll do it at least this year and next. I don't like the uncertainty of future tax rates with all this national debt.

You need to keep your eye on the big picture (and try to forget about the tax money)...
by Johnsson
Sun Feb 04, 2024 6:59 am
Forum: Personal Finance (Not Investing)
Topic: Help! 25 Maxed out credit cards.....
Replies: 268
Views: 34193

Re: Help! 25 Maxed out credit cards.....

I agree that Dave Ramsey is very good at dealing with this type of situation. If you can get them (or at least DIL to start) listening to him/his podcasts it could give them hope and inspiration.

Kids often don't like advice from their parents. Maybe they'll listen to him?
by Johnsson
Sun Feb 04, 2024 5:33 am
Forum: Personal Finance (Not Investing)
Topic: 2023 Tax Year - First Big Roth Conversion - Triage Summary
Replies: 165
Views: 11173

Re: 2023 Tax Year - First Big Roth Conversion - Triage Summary

. Last year, we converted $400,000 from one of our 401k accounts to a Roth account. If you'd like more background about our situation, you can review this post from last year. https://www.bogleheads.org/forum/viewtopic.php?t=397687 Here are the results of our 2023 tax filing. Looking at Federal Income Taxes Only: If we had not done the conversion, our 2023 tax rate paid would have been 12.17% . With the inclusion of the $400k taxable conversion, the tax rate we are paying is 23.11% . With the IRMAA surcharges added in (that we'll pay in 2025), the effective rate is 24.64% . So for each dollar of the $400k conversion, we paid a 29.91% effective tax rate. Looking at Federal and State Taxes Together: If we had not done the conversion, our 202...
by Johnsson
Sat Feb 03, 2024 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

If I have time later in the day, I'll see if I wrote down in my notes exactly what I did and where I got the ideas for wrangling Turbotax. Here are the two links from the Turbotax Community Forum I have written down in my notes. Is this the type of "Turbotax's clunky nominee process" issue you are trying to deal with? (For what it is worth, I also found a Boglehead's thread that says that HR Block has the same sort of issue.) (I suspect I fiddled around with the "2 dummy 1099-DIV" approach until it worked to get the right numbers in the right places on the decedent's final 1040 (and 1040 Schedules). I definitely was able to e-file, despite what some of the replies in the links below say. I haven't received any objection...
by Johnsson
Sat Feb 03, 2024 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

HomeStretch wrote: Sat Feb 03, 2024 11:33 am It’s a judgment call on the $6k. I was pretty busy dealing with 2 estates and a Medicaid LTC application for one decedent so I elected to skip the nominee 1099s for total income of <$1k.
Interesting. I have the estate, a trust and also have a Medicaid MLTSS assessment I'm dealing with. I'm hoping these taxes are the end of the estate and trust.
by Johnsson
Sat Feb 03, 2024 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

In my limited experience, it’s not uncommon for the final decedent 1099s to include post-death investment income. No matter how quickly the death is reported (which requires an issued death certificate) and the brokerage processes the account transfer, it’s still likely some post-death income will be included on the decedent’s 1099s. The correct way is for the post-death income to be transferred to the TOD beneficiaries or the Estate as beneficiary via nominee 1099s. Is the post-death income small enough to not make a material difference if reported on the final 1040? Did the accounts pass by TOD designations to the 4 beneficiaries or is the Estate the beneficiary? Assets transferred to beneficiaries by estate and trust. There's about $6,0...
by Johnsson
Sat Feb 03, 2024 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

cadreamer2015 wrote: Sat Feb 03, 2024 10:43 am I think you can ask for corrected 1099s. Hope they will correct them.
If only. I tried and was almost laughed at several times. It's not something they do. Eight of the nine are big places, very familiar to this forum.
by Johnsson
Sat Feb 03, 2024 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Re: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

cadreamer2015 wrote: Sat Feb 03, 2024 10:28 am Did you notify the brokerage of your Mom's death immediately? Did they set up an estate account under an EIN that had been obtained? If so, then then the 1099s should flow to the correct taxpayer (your Mom's 1040 or the estate's 1041).
Yes. Everyone (9 places) were notified within a week of her passing with an estate TIN. Only two of the 9 cared to use the estate TIN, even when I requested they do so. From my research, I'm not alone. Few bother to separate out post-death income for the estate. :annoyed
by Johnsson
Sat Feb 03, 2024 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?
Replies: 22
Views: 1804

Proposed alternative to Turbotax's clunky nominee process (for deceased Mom's final 1040, related to 1099-DIV)?

Mom had 4 investment accounts and 5 savings accounts, each with post-death income. The numbers aren’t big, but I want to make sure the returns are all accurate. I was going to hire a professional but (after a bunch of research) the process doesn't seem terribly complicated, so I'm attempting (so far) to do it myself. I've received two of the 1099s (for the total of both pre and post-death income) and have attempted to enter the information... Unfortunately, I've seen from entering the 1099-DIV information and nominee information that TT makes calculations projecting Qualified Dividend numbers that are incorrect for my situation. I do not see any easy way to separate out nominee income numbers for the other income noted on the 1099-DIV. To e...
by Johnsson
Fri Jan 26, 2024 3:40 pm
Forum: US Chapters
Topic: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂
Replies: 429
Views: 41894

Re: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂

Happy birthday Taylor. Your consistent wisdom and steady hand on the tiller is an inspriation to all of us.

Thank you and best wishes for many happy years to come.
by Johnsson
Mon Jan 22, 2024 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Can We Retire in Hawaii? Please Critique
Replies: 214
Views: 37510

Re: Can We Retire in Hawaii? Please Critique

Average single house construction cost in Honolulu is $760 per square foot, so for $500,000 you are looking at a 640 square foot house. Doing it yourself will be somewhat less, but permits and materials will, as you know, be quite dear. Also, building to earthquake & hurricane code can be a bit tricky if you don't have a certified architect & construction crew. Good luck! https://www.bizjournals.com/pacific/news/2017/07/05/building-a-house-in-honolulu-costs-nearly-twice-as.html To be fair, the construction costs for a house on the big island are about half of that rate, depending on quality of build and upgrades. Yeah, you are right, and I've account for housing cost. Never-the-less, people do not want to answer the hard questions ...
by Johnsson
Sun Jan 21, 2024 12:13 pm
Forum: Personal Investments
Topic: Retirement investment - Cash vs Bonds
Replies: 12
Views: 2236

Re: Retirement investment - Cash vs Bonds

We are retired and have a few years in cash, like you.

I have most in a tax free money market due to tax bracket r/t Roth conversions. I can move this back to a regular money market when we slow down conversions.
by Johnsson
Sat Jan 20, 2024 9:43 am
Forum: Personal Investments
Topic: Managing a Surprise Multi-Million Dollar Inheritance at 29
Replies: 25
Views: 4585

Re: Managing a Surprise Multi-Million Dollar Inheritance at 29

The $500k redirection of the inheritance could possibly be handled with a Deed of Variation after death, if Mom still wants to do it, if the Will can not be changed prior to passing. Just do your homework to see if it makes sens.
by Johnsson
Sat Jan 20, 2024 9:19 am
Forum: Personal Investments
Topic: Managing a Surprise Multi-Million Dollar Inheritance at 29
Replies: 25
Views: 4585

Re: Managing a Surprise Multi-Million Dollar Inheritance at 29

I'll just offer one simple thought (having just gone through assimilating inherited funds into our portfolio)... If handled properly, the bases for all of those stocks were likely updated to the value on your Grandmother's date of death. Assuming you can view these online, you should be able to see the current values, bases and gains/losses. It MAY be easy to gather up a number of stocks with gains and a number of stocks with losses, that if sold all at once would end up with gains offsetting losses for a net gain of around zero. If all sold at once, the resulting sale would be at little cost to your Mom and provide funds to invest in another way. I inherited 30 stocks and was able to pare the number to 8, pretty quickly, by doing this. I c...
by Johnsson
Thu Dec 14, 2023 7:31 am
Forum: Personal Finance (Not Investing)
Topic: How to find a experienced & knowledgeable tax preparer for an estate with trusts in south NJ
Replies: 21
Views: 1594

Re: How to find a experienced & knowledgeable tax preparer for an estate with trusts in south NJ

The third bolded sentence seems a bit presumptuous, since you don't know (nor do I) if all relevant facts regarding the estate have been disclosed. The OP does not seem to be holding back information. Some threads do not disclose enough information to draw a conclusion. However, if we assume that every thread is like that, then we'd never be able to give any answers. We'd just keep asking questions. OK. Having heard your arguments in favor of self-preparation of the necessary tax returns, and my cautionary arguments against, the OP can make a somewhat-informed decision as to which path to follow. Your cautionary arguments (and my statement that 'I don't know what I don't know') are precisely the reason why I'm looking for someone knowledge...
by Johnsson
Wed Dec 13, 2023 11:56 am
Forum: Personal Finance (Not Investing)
Topic: How to find a experienced & knowledgeable tax preparer for an estate with trusts in south NJ
Replies: 21
Views: 1594

Re: How to find a experienced & knowledgeable tax preparer for an estate with trusts in south NJ

bsteiner wrote: Wed Dec 13, 2023 9:22 am The law firm handling the estate should be able to do the estate and inheritance tax returns, if any.

They should be able to recommend an accountant who can do her final individual income tax return.

Some law firms do the fiduciary income tax returns for estates and trusts and some don't. The law firm should be able to either do these returns or recommend an accountant who can.
Since I opted to save a substantial amount of money by handling the estate on my own, I do not have a law firm involved.

That's why I'm looking here for help finding a suitable tax preparer...
by Johnsson
Wed Dec 13, 2023 7:23 am
Forum: Personal Finance (Not Investing)
Topic: How to find a experienced & knowledgeable tax preparer for an estate with trusts in south NJ
Replies: 21
Views: 1594

How to find a experienced & knowledgeable tax preparer for an estate with trusts in south NJ

Mom passed away in south Jersey (in 2023) and I'm in central Pennsylvania, so I don't really have any knowledgeable people to ask for references. Except for an estate checking account (which I need to keep open until late May 2024) all accounts (including trusts) have been distributed. I typically did Mom's taxes (including the trusts and K1 forms) with TurboTax but do not want to attempt her final taxes because I don't know what I don't know. The taxes aren't typically complicated on a normal basis (there are 3 brokerages and 5 banks that will be reporting income) and I want to make sure all the appropriate considerations and adjustments are handled correctly. I'm asking for a professional in South Jersey because I want someone very famili...
by Johnsson
Tue Dec 12, 2023 11:29 am
Forum: Personal Investments
Topic: Should I reallocate Fixed Income holdings?
Replies: 15
Views: 1528

Re: Should I reallocate Fixed Income holdings?

Sorry, your last comment doesn't help me. You wrote earlier "The inheritance also pushed our overall Equity/FI allocation to 62/38... something we weren't going to do for 8 more years when we start SS." But you don't state whether you wanted something like 90/10 or 10/90 for an asset allocation because 62/38 could arise from either starting point. Also maybe you already have $2,177,000 in equities in your taxable account. You didn't say. At the moment you have only revealed that you have more than $500,000 in a money market in your taxable account. Our original balance point was 55 equities/45 FI. At this time, we have 1,699.5m of equities in taxable and 532m in taxable money market. We also have 1,043m equities in Roth. Where do...
by Johnsson
Tue Dec 12, 2023 8:49 am
Forum: Personal Investments
Topic: Should I reallocate Fixed Income holdings?
Replies: 15
Views: 1528

Re: Should I reallocate Fixed Income holdings?

I would (and do) have our equities in taxable. Our taxable is 100% equities. We put fixed income in tax-deferred. If tax-deferred was already 100% fixed income and no longer had equities in it, then I would have to have some fixed income in taxable. It is not clear to me what your full portfolio consists of because it seems you have not shown us in this thread. Except for the $532m of after-tax cash, the remainder of after-tax accounts are in equities (mostly VTI). Our equities in after-tax (including Roth) are ~62% of our total assets, and I am happy with the % and equity holdings (for the most part). Our tax-deferred accounts are 100% Fixed income (as shown). So, if I reallocate our pre-tax into the two bond funds (SCHP and VGIT), that l...
by Johnsson
Tue Dec 12, 2023 8:28 am
Forum: Personal Investments
Topic: Should I reallocate Fixed Income holdings?
Replies: 15
Views: 1528

Re: Should I reallocate Fixed Income holdings?

livesoft wrote: Tue Dec 12, 2023 8:12 am I would rebalance to get my asset allocation back to what I wanted it to be. I would not increase my cash allocation percentage nor my bond allocation percentage just because I got an inheritance. I would use same bond funds that I was satisified with before the inheritance.

There will be some movements in bond funds and ETFs today and tomorrow because of the FOMC meeting.

We are ALWAYS "in a time of uncertainty",
I can certainly put more in those pre-tax bond funds, and have been considering that.

That leaves $532m in taxable, where more of MY uncertainty lies. Does anyone suggest I purchase SCHP and/or VGIT in taxable? Or other funds?
by Johnsson
Tue Dec 12, 2023 8:20 am
Forum: Personal Investments
Topic: Should I reallocate Fixed Income holdings?
Replies: 15
Views: 1528

Re: Should I reallocate Fixed Income holdings?

invest2bfree wrote: Tue Dec 12, 2023 8:06 am
What does m stand for million?


m=1000
by Johnsson
Tue Dec 12, 2023 8:01 am
Forum: Personal Investments
Topic: Should I reallocate Fixed Income holdings?
Replies: 15
Views: 1528

Should I reallocate Fixed Income holdings?

Mainly due to a recent inheritance, our fixed income now has an abundance of cash. The inheritance also pushed our overall Equity/FI allocation to 62/38... something we weren't going to do for 8 more years when we start SS. I plan on leaving the equity percentage mostly as is (mostly in VTI, the Total Stock Market). I believe we have enough FI for the duration (when added to annual interest/dividends and eventual SS). However, it feels like too much cash to me and I'm hoping for your insight. I know we're in a time of uncertainty, making it that much more difficult to decide what to do. Our current FI mix is... Taxable... $532.2m - FZDXX - Fidelity® Money Market Fund Premium Class currently paying ~5.2% Pre-tax... $358.5m - FZDXX $443.4m - ...
by Johnsson
Sun Dec 10, 2023 8:14 am
Forum: Personal Investments
Topic: Which stocks to get rid of 1st (2nd, 3rd,...)?
Replies: 3
Views: 625

Which stocks to get rid of 1st (2nd, 3rd,...)?

I inherited 28 individual stock holdings (from dissolved trusts) . Some have been held for over 30 years, and unfortunately some of their bases were not stepped-up. :oops: I really appreciate that it's a good problem!! Our personal core holding is 55% - [VTI (Total Stock Market) with some VV (from TLH), international and small cap mixed in] (FI left out because it doesn't pertain). My plan is to invest the resultant cash into my current protfolio/mix. I was able to get rid 22 of them by selling winners and losers for a net loss of ~$1,000. :sharebeer The six remaining have gains that require taxes I do not want to pay this year (due to Roth Conversions/NIIT). I should be able to get rid of them over the next year or two as I continue Roth C...