Search found 5206 matches

by typical.investor
Sun Mar 17, 2024 6:15 pm
Forum: Non-US Investing
Topic: Investing in France
Replies: 3
Views: 446

Re: Investing in France

Investnewbie01 wrote: Sun Mar 17, 2024 4:25 pm Hi,
Can a French resident invest in a Vanguard S & P 500 mutual fund ? I have seen mentions of VOO and VUSA.
Can anyone give advice how to set up these funds for French residents ?
Any advice welcome
Thanks
As with your UK question, it isn't really possible to say.

If the UK or French residents are US citizens (or green card holders), the answer is very different.

In general, find a broker (easier said than done for US citizens in the EU or UK) and select funds that are easiest to hold tax wise. VOO would be best for a US citizen and VUSA the opposite.
by typical.investor
Wed Mar 13, 2024 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Charles Schwab cannot overnight a replacement debit card
Replies: 87
Views: 6100

Re: Charles Schwab cannot overnight a replacement debit card

Got a call from Schwab today while traveling. ATM card was used for fraud in Japan (I'm not in Japan). Obvious fraud so card was blocked and they want to re-issue me a card. I asked for Overnight delivery as I'm traveling and need the debit card asap. Schwab said the fastest they can do for "expedited" service is 3-5 business days. I'm stunned. American Express, Capital One, HSBC, and Chase all overnight the card (or at worst 48 hours if you call late in the day). Schwab... nada. Up to 5 days (although even worse cause they process in 8 day batches!). Imagine being without a debit card for 5 days while traveling abroad with NO opportunity to get it faster whatsoever. I loved Schwab until I discovered this. Luckily as a frequent t...
by typical.investor
Tue Mar 12, 2024 11:44 pm
Forum: Personal Investments
Topic: Poor Publix employee seeking 401k investment advice - no longer have Publix stock
Replies: 296
Views: 28920

Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

I would spend less than $80k in retirement. Yes, my 401k is less than $500k. It isn't even $100k. My 401k which includes Publix stock given to me is greater than my brokerage + roth accounts. Well my math was wrong. If your portfolio at retirement is about $636,000 and you take out 4% from the 401(k), then you are withdrawing about $25k and getting taxed at the zero (for the standard deduction) and 10% brackets. So up until that point, the 401(k) seems better because your marginal rate now is 12% but in the future would be 10%. Once you get above that, 4% withdrawals will put you at the 15% marginal rate (expected in 2026), so adding to a ROTH at that point makes more sense because you'd be paying 12% now instead of 15% in the future. Does...
by typical.investor
Tue Mar 12, 2024 11:34 pm
Forum: Personal Investments
Topic: Poor Publix employee seeking 401k investment advice - no longer have Publix stock
Replies: 296
Views: 28920

Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

I was wrong about 10% bracket going away, I stand corrected. Edited my previous post. Given additional information here by @ralphboy, I agree that maximizing 401(k) is likely the right answer, but he should also make a Roth IRA contribution at least $2,000 per year to capture the Savers credit. Making that Roth IRA contribution is like getting a 10% cash back, or can alternately be viewed as a 2% bracket (12% tax cost - 10% Uncle Sam kicking in an incentive). Should strike a balance between the two ... deferring everything to the 401k means missing out an a 10% cash back deal. I agree. Get the Saver's Credit, but I thought that elective salary deferral contributions to a 401(k) qualified. That's what it says at https://www.irs.gov/retireme...
by typical.investor
Tue Mar 12, 2024 9:10 pm
Forum: Personal Investments
Topic: Poor Publix employee seeking 401k investment advice - no longer have Publix stock
Replies: 296
Views: 28920

Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Thanks, I changed my 401k contribution from 3% to 12% I think that is a good move and you should prioritize your 401(k). I think your tax person is correct. Let me ask this, how much yearly spending do you expect to be able to have in retirement? A common aim is 80%, but let's look at 150% or 200% of current income assuming you will go on to make more. If you are withdrawing $80,000 per year from a 401(k), that means your average tax rate will be about 11.7% even if we assume the rate will go up to 15% in 2026. 13,850 (standard deduction) - 0% 11,600 - 10% bracket 54,550 - 15% (2026 rate) bracket --------- =$80,000 @ 11.7% If you expect to spend less than $80/year in retirement, why would you pay 12% in taxes now to fund the ROTH instead o...
by typical.investor
Tue Mar 12, 2024 8:06 pm
Forum: Personal Investments
Topic: Poor Publix employee seeking 401k investment advice - no longer have Publix stock
Replies: 296
Views: 28920

Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Thanks, I changed my 401k contribution from 3% to 12% I think that is a good move and you should prioritize your 401(k). I think your tax person is correct. Let me ask this, how much yearly spending do you expect to be able to have in retirement? A common aim is 80%, but let's look at 150% or 200% of current income assuming you will go on to make more. If you are withdrawing $80,000 per year from a 401(k), that means your average tax rate will be about 11.7% even if we assume the rate will go up to 15% in 2026. 13,850 (standard deduction) - 0% 11,600 - 10% bracket 54,550 - 15% (2026 rate) bracket --------- =$80,000 @ 11.7% If you expect to spend less than $80/year in retirement, why would you pay 12% in taxes now to fund the ROTH instead o...
by typical.investor
Tue Mar 12, 2024 4:14 am
Forum: Personal Finance (Not Investing)
Topic: Managing asset allocation living overseas
Replies: 1
Views: 359

Re: Managing asset allocation living overseas

Our overall bond allocation has fallen to 5-6% and I want to get it up to 10-12%. Recommendations on most tax efficient and least headache way to do so? Move Fidelity Rollover IRA to Charles Schwab? For what it's worth, we plan to be here at least 5 more years. You can move it to Schwab but it may not help you. Do they know you are overseas? If not, best would probably to keep using a US address with them. If Schwab knows, they will likely move you to Schwab International. It's fine and they are set up for ETF only investing and other compliance things (like no brokered CDs) for expats. The problem is UK regulation on the documentation necessary for sales to retail investors. It means Schwab International can sell you ETFs unless you quali...
by typical.investor
Mon Mar 11, 2024 8:25 pm
Forum: Investing - Theory, News & General
Topic: Schwab Information Thread with FAQ, Links, Tips and Q&A
Replies: 693
Views: 104188

Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

2. Recently I transferred over my Roth TSP to CS and received a $600 award. That’s great, but I ran into an issue, as I’m going to be using part of that transfer for a down payment on a house/condo in May 2024. I told them that since I’m only 58, I can only use the Roth Contribution for the down payment and not the capital gains as I’m not 59.5 yet. The TSP site and paperwork prior to the transfer shows that I had $160,000 in Roth contributions. Pls note that I rolled this money into an existing Charles Schwab Roth IRA account that was established in 2012, so more than 5 years. I plan on combining my original Charles Schwab Roth Contributions of $62,000 plus the $160,000 TSP rollover contributions for a total of $222,000 down payment. Here...
by typical.investor
Mon Mar 11, 2024 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: What does Schwab do better than Fidelity?
Replies: 305
Views: 49293

Re: What does Schwab do better than Fidelity?

- Fidelity is notorious for closing accounts without any warning and giving very vague, opaque directions to regain access: https://www.reddit.com/r/fidelityinvestments/search/?q=account%20closed&restrict_sr=1&sr_nsfw= - Fidelity does charge 1% fee on ATM international withdrawals despite many claiming to the contrary. I asked a Fidelity employee directly and was told this, and Fidelity employee's themselves have reported the 1% charge for international ATM withdrawals is true: https://www.reddit.com/r/fidelityinvestments/comments/1201kvc/for_atm_transactions_i_understand_that_any_atm/ Well here is the official Fidelity link about the foreign transaction fee and it is exactly as reported on Reddit. See https://www.fidelity.com/spen...
by typical.investor
Mon Mar 11, 2024 2:55 pm
Forum: Non-US Investing
Topic: Keeping Vanguard account as Non resident Alien
Replies: 64
Views: 18918

Re: Keeping Vanguard account as Non resident Alien

They will also withhold 30% on transfers between IRA and Roth IRA thus forcing me to drawdown the account (I no longer have US earned income to allow me to redeposit it). I would argue you are mistaken here (but what the heck do I know). As a US-Expat without taxable income doing a ROTH IRA conversion, I faced the same problem at Schwab. While they clearly said they were not offering and could not offer tax advice, they said their customers commonly converted the entire amount by replacing the withholding from free cash. I followed the suggestions because: 1) I was not making a contribution to the ROTH and needed no taxable earned income to do a conversion. It is simply not a stated requirement for a conversion. 2) If I did not convert the...
by typical.investor
Mon Mar 11, 2024 3:06 am
Forum: Personal Finance (Not Investing)
Topic: Bug on TurboTax or My Misunderstanding: I Bond interest tax by state
Replies: 12
Views: 1344

Re: Bug on TurboTax or My Misunderstanding: I Bond interest tax by state

itworks wrote: Sun Mar 10, 2024 11:57 pm Still digging...
Your state is different than my state, but if I try it I see... higher state taxes too.

My Federal AGI is higher.
My State AGI is the same.

This means I am not getting taxed on the extra interest by the State. Actually the State tax amount before credits is exactly the same.

Where I see the difference is that I get less of a state tax credit for something or other as the credit amount is based off the Federal AGI. The higher Federal AGI means I get less of a state credit. YMMV.
by typical.investor
Sun Mar 10, 2024 6:26 pm
Forum: Investing - Theory, News & General
Topic: Can we expect TBM funds to outperform inflation?
Replies: 62
Views: 5113

Re: Can we expect TBM funds to outperform inflation?

Elysium wrote: Sat Mar 09, 2024 12:27 pm Buy TIPS if you want guarantee.
Yeah, about that ...

1) do TIPS at a negative yield guarantee that? Does holding a TIPs fund guarantee you will never do that?
2) does the basket of goods that comprise the TIPs calculation match your basket?
3) is there no rate risk and potential to sell at NAV loss if you are not holding an individual bond to maturity (similar to a TBM fund)?
4) can deflation not take back the previous inflation adjustments?

So I agree while perhaps TIPs are more assured to outperform inflation, guarantees are pretty difficult to come by.
by typical.investor
Sun Mar 10, 2024 3:36 pm
Forum: Personal Investments
Topic: New Boglehead\Newly Retired
Replies: 4
Views: 649

Re: New Boglehead\Newly Retired

retired@50 wrote: Sun Mar 10, 2024 3:04 pm
AlottaJuicy wrote: Sun Mar 10, 2024 12:30 pm
10. Wondering if I should cap any investment account at 500K because of SPIC insurance limits.
Welcome to the forum.

See the wiki page: https://www.bogleheads.org/wiki/Vanguard_safety

Regards,
That seems to be more relevant to the mutual fund side of Vanguard and not the brokerage.
by typical.investor
Sun Mar 10, 2024 3:01 pm
Forum: Personal Investments
Topic: New Boglehead\Newly Retired
Replies: 4
Views: 649

Re: New Boglehead\Newly Retired

10. Wondering if I should cap any investment account at 500K because of SPIC insurance limits. I would say you don't have to. Understand that it's not insurance but rather protection and the first line is the return of your assets. Regulations require your assets to be held separately from the broker's. This means that even if the broker goes bankrupt, your assets can simply be returned. In Lehman's, the largest US bankruptcy ever I believe, that is what happened and SIPC funds weren't needed at all. Then, if some assets are missing, SIPC steps in to reimburse you up to $500k ($250k for cash) for each account type for the assets that were missing and not returned. Since the typical bankruptcy sees over a 95%+, it means on average you'd be ...
by typical.investor
Sun Mar 10, 2024 3:59 am
Forum: Personal Finance (Not Investing)
Topic: Realizing Capital Gains in a Trust
Replies: 22
Views: 1801

Re: Realizing Capital Gains in a Trust

doobiedoo wrote: Sun Mar 10, 2024 3:40 am OP [MindfulMoneyManager], I created a test case in TurboTax Business 2023 based on my guess at your scenario.
Below are the screenshots from TurboTax Business 2023.
...
Wow, doobiedoo for the win! Nice post to explain it clearly!!!
by typical.investor
Sun Mar 10, 2024 3:04 am
Forum: Personal Finance (Not Investing)
Topic: Realizing Capital Gains in a Trust
Replies: 22
Views: 1801

Re: Realizing Capital Gains in a Trust

Income is stacked for the purposes of determining your bracket. So for example, if the trust received $14,650 in bond interest (or other ordinary income including short term capital gains and non-qualified dividends) but did not distribute it, then the next $1 in LT capital gains (or qualified dividends) would be at the 20% rate. If that same trust received $14,650 in bond interest but distributed it to the beneficiary (who gets taxed instead), then the next $1 in LT capital gains (or qualified dividends) would be in the 0% rate until $3000. So to answer your question, no the amount of capital gains does not affect the tax bracket of ordinary income (interest, short term capital gains, non-qualified dividends etc). However, the amount of o...
by typical.investor
Sun Mar 10, 2024 1:31 am
Forum: Personal Finance (Not Investing)
Topic: Realizing Capital Gains in a Trust
Replies: 22
Views: 1801

Re: Realizing Capital Gains in a Trust

Trusts hit the cap gains max rate of 20% at 14.65k. Gains are allocated to the capital and would typically be taxed to the trust, but the document or state law may allow the trustee to allocate gain to income. Thx for reply. I see you are saying the Trust brackets are different than individual brackets in that you hit the max capital gains tax rate sooner, 14.65k. However, if the income is $0, does this allow for the 0% capital gains rate? Or does LCTG is > 14.65k trump $0 income and then the cap gains rate is taxed at 20%? You are letting your conception of taxation for individuals get in the way of understanding how trusts are taxed. Here is the direct word from the IRS: "For tax year 2023, the 20% maximum capital gain rate applies ...
by typical.investor
Sun Mar 10, 2024 1:17 am
Forum: Investing - Theory, News & General
Topic: Schwab Information Thread with FAQ, Links, Tips and Q&A
Replies: 693
Views: 104188

Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Is there a link/page, that says "worldwide ATM fee reimbursement" for a debit card linked to Schwab One Brokerage account? Sigh, do you doubt us? Anyway, as stated, you can get the Visa Debit Card directly linked to your brokerage account without having a Schwab Bank account. I have done so and received the ATM reimbursement. See https://saccontent.schwabcdn.com/ask/servicing-accounts/features-services/account-features/introduction-to-schwab-one-platinum-visa-debit-card Here are the key points: The Schwab One Visa Platinum Debit Card is a no annual fee debit card available only to Schwab One account holders . It can be used to make debit purchases anywhere Visa is accepted and to withdraw cash at ATMs worldwide. To obtain a Visa ...
by typical.investor
Sat Mar 09, 2024 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Realizing Capital Gains in a Trust
Replies: 22
Views: 1801

Re: Realizing Capital Gains in a Trust

To see how to allocate capital gains to income (under the presumption that the beneficiary will get taxed at a lower rate), look into the 643(b) election. My understanding is a bit limited but I believe it must be done on a consistent basis and be permissible under the trust documents (or local law if the document is silent). I don't believe you can just start doing it on an existing trust if you hadn't been doing it before but note the following article states the IRS stated "the power does not have to be exercised consistently, as long as it is exercised reasonably and impartially.". I have no idea what reasonably and impartially mean in the eyes of the IRS ... maybe ask your lawyer. https://www.thetaxadviser.com/issues/2014/aug...
by typical.investor
Fri Mar 08, 2024 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: US Tax credit on Cap Gain paid on ag land sold in France
Replies: 2
Views: 507

Re: US Tax credit on Cap Gain paid on ag land sold in France

I've looked through various IRS.gov publications (514 and 1116) to find an answer. My wife and I sold some ag land in 2023 in France she inherited from her French parents in 2007. She is now a US citizen. We paid approximately 5,500 Euros (equivalent to approx. $6,000) Capital Gains TAX in France. Due to exchange rates, my actual US$ CG is approximately $500 so the US CG tax will be small. Am I able to get a US tax credit for this? I am unable to find convincing evidence either way. I'm not able to follow your math. a] What was your cost basis (value at inheritance) in EUR in 2007? b] What did it sell for in EUR in 2023? c] What was cost basis in USD in 2007 using the exchange rate then? d] What did you sell it for in USD in 2023? You said...
by typical.investor
Thu Mar 07, 2024 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Know your customer (KYC)
Replies: 22
Views: 2560

Re: Know your customer (KYC)

You can blame your government for this, it is not the banks that want to do it for better or worse. Why blame the government? Why not blame the drug dealers, human traffickers, organ sellers, kidnappers, terrorists and other people whose actions make such requirements necessary? If the government really wanted to make a dent in money laundering, they'd stop printing $100 bills. The rest is more theater than effective security. Are there not regulations for transactions in cash over $10,000? How does 100 bills or 200 bills or even 500 bills to meet that threshold really make a difference? Without such regulations, it'd simply require drug dealers, human traffickers, organ sellers, kidnappers, and terrorists to use more suitcases. Do you rea...
by typical.investor
Thu Mar 07, 2024 2:14 pm
Forum: Investing - Theory, News & General
Topic: What is the recommended duration for national muni bond funds in taxable?
Replies: 2
Views: 454

Re: What is the recommended duration for national muni bond funds in taxable?

Doing Roth conversions in early retirement will also involve converting from total bond (in traditional) to total market (in Roth). So I would counterbalance that by buying bonds in taxable. During the conversion years, I would be converting up to the top of the (post-2025) 25% tax bracket, so my marginal tax rate would be the next bracket, 28%. After the conversion years, marginal tax rate would be 30%, because I would be in the (post-2025) 15% ordinary income bracket, plus 15% applied to qualified income pushed into being taxed (and no state tax). I'm eyeing Vanguard funds, like VTES (Vanguard Short-Term Tax-Exempt Bond ETF), VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF, i.e. total muni). A...
by typical.investor
Thu Mar 07, 2024 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Know your customer (KYC)
Replies: 22
Views: 2560

Re: Know your customer (KYC)

THY4373 wrote: Fri Feb 23, 2024 11:45 am You can blame your government for this, it is not the banks that want to do it for better or worse.
Why blame the government? Why not blame the drug dealers, human traffickers, organ sellers, kidnappers, terrorists and other people whose actions make such requirements necessary?
by typical.investor
Wed Mar 06, 2024 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs / Complex Trust 663(b) election
Replies: 9
Views: 1074

Re: Special Needs / Complex Trust 663(b) election

The popular programs have enough users that glitches tend to be spotted and fixed, at least at the Federal level. But there can still be glitches. There aren't very many qualified disability trusts, Section 663(b) elections (to treat distributions in the first 65 days of the year as if made in the previous year) or Section 643(e) elections to treat distributions as sales is also not common. OK, I am an edge case in all things eternally. I try my best to be typical but somehow destiny plots its own course. Yeah... Some programs allow you to override things. Can you override this? Or use the H&R Block program since that one will allow it. Yes, TurboTax also works fine if you select "Complex Trust" first and take the election. I...
by typical.investor
Wed Mar 06, 2024 12:47 am
Forum: Personal Finance (Not Investing)
Topic: Special Needs / Complex Trust 663(b) election
Replies: 9
Views: 1074

Re: Special Needs / Complex Trust 663(b) election

OP you are right. It’s simply not a simple trust, and is therefore a complex trust, if trustee can retain fiduciary net income. Maybe shoot them IRC 651 and the related regulation and ask them to find any authority to the contrary, which I think would be non-existent. Thanks for the reassurance. It's definitely not a simple trust. Nor is it a grantor trust. Otherwise their solution might be a refund rather than reworking their software. I’m surprise these kind of things don’t happen more often, though maybe they do. Funny, when I called for a refund, they got the developer on the phone and he was willing to show me how to get the software to workaround the issue. If they had a workaround, I wish they'd simply have told me my first call or ...
by typical.investor
Tue Mar 05, 2024 10:22 pm
Forum: Non-US Investing
Topic: How to invest while living in Japan as a dual Japanese/US citizen without getting into major tax trouble?
Replies: 9
Views: 3416

Re: How to invest while living in Japan as a dual Japanese/US citizen without getting into major tax trouble?

Brush up on Mutual Fund distribution agreements and you will see they are for sales to US residents only. ETFs for expats are fine, but many firms don't want residents of foreign countries as it's a compliance hassle and their systems aren't set up for ETF only accounts. But did the OP say mutual funds? Why does it matter? Firms don't want the cost of compliance. Only that they had 150k among IRAs, Roths, and HSA. If it's Vanguard, Vanguard allows brokerage IRA accounts, where someone can hold ETFs. I think you didn't read my post. Let me restate it "Vanguard doesn't want residents of foreign countries as it's a compliance hassle and their systems aren't set up for ETF only accounts". Schwab International is set up that way which...
by typical.investor
Tue Mar 05, 2024 9:49 pm
Forum: Non-US Investing
Topic: How to invest while living in Japan as a dual Japanese/US citizen without getting into major tax trouble?
Replies: 9
Views: 3416

Re: How to invest while living in Japan as a dual Japanese/US citizen without getting into major tax trouble?

If you have 150k in the US already, why won't your firms allow continued contributions to the accounts? Brush up on Mutual Fund distribution agreements and you will see they are for sales to US residents only. ETFs for expats are fine, but many firms don't want residents of foreign countries as it's a compliance hassle and their systems aren't set up for ETF only accounts. If you don't like IKBR, then Schwab International is a good option. The caveat is that they can only open accounts in countries that allow foreign financial firms to do so. The workaround is to open a Schwab account while in the US before moving (I've heard at least six months recommended) and then switching the account to Schwab International. You will lose access to br...
by typical.investor
Tue Mar 05, 2024 6:24 pm
Forum: Non-US Investing
Topic: How to invest while living in Japan as a dual Japanese/US citizen without getting into major tax trouble?
Replies: 9
Views: 3416

Re: How to invest while living in Japan as a dual Japanese/US citizen without getting into major tax trouble?

I am in a similar boat to you, although I don't have Japanese citizenship. I am still currently researching deeper into the topic, but as far as US investments go, I have my investments from when I lived in the US continuing, simply using my parent's address and phone number. Not sure if this is a wise or sustainable method, but just offering my experience. Posting in this thread to check back later to hear more about your experience. I would suggest you keep doing that. The only issue is that there are a few sticky states that try to tax you even though you are overseas as they presume you will return and that your domicile (place you intend to return to after a temporary absence) is still in their state. CA is notoriously bad. For exampl...
by typical.investor
Tue Mar 05, 2024 5:37 pm
Forum: Personal Consumer Issues
Topic: What to do?? [Vanguard warning about closing account for calling too frequently]
Replies: 74
Views: 6811

Re: What to do?? [Vanguard warning about closing account for calling too frequently]

go2 wrote: Tue Mar 05, 2024 3:57 pm My guess is may be called 15 times during August when I have to transfer out of mutual fund platform to brokerage platform.
Was there a problem? Why did it take so many times?
go2 wrote: Tue Mar 05, 2024 3:57 pm During December to to RMD may be called 15 times and lately tying to transfer my other IRA to V may be 10 times. During other times not needed to call them.
Why did it take 15 calls to take an RMD?

Why did it take 10 calls to transfer an IRA?
by typical.investor
Tue Mar 05, 2024 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs / Complex Trust 663(b) election
Replies: 9
Views: 1074

Re: Special Needs / Complex Trust 663(b) election

What should I do. I tried three software programs with differing results: H&R Block Allows Qualified Disability Trusts to take 663(b) and 643(e)(3) elections. Tax Act Allows Qualified Disability Trusts to take 643(e)(3) elections but not 663(b) elections. There is no way to select the 663(b) election in a forms mode. Turbo Tax Allows Qualified Disability Trusts to take neither 663(b) nor 643(e)(3) elections. They can though be selected in forms mode and doing so doesn't get flagged as an error during error checking. Discussion If three different tax programs are handling this differently, I bet I get three different answers by going to three different CPAs. I think TaxAct and TurboTax don't allow it because their software engineers use ...
by typical.investor
Mon Mar 04, 2024 9:39 pm
Forum: Personal Consumer Issues
Topic: What laptop to buy for TurboTax business?
Replies: 13
Views: 1790

Re: What laptop to buy for TurboTax business?

GreendaleCC wrote: Mon Mar 04, 2024 8:56 pm
Atwater28 wrote: Sun Mar 03, 2024 4:53 pm TurboTax requires windows computer.
TurboTax is sold for Mac, too. Are you sharing a license with someone who bought the Windows version?
TurboTax Business is only available for Windows unless you are possibly from the future of an alternative reality. “Home and Business” is a different TT product and like you say available. That is not the topic here.

If you got it to run under Parallels, please do state that is what you meant.
by typical.investor
Mon Mar 04, 2024 7:30 pm
Forum: Personal Consumer Issues
Topic: What laptop to buy for TurboTax business?
Replies: 13
Views: 1790

Re: What laptop to buy for TurboTax business?

What laptop would you recommend for doing TurboTax business on? TurboTax requires windows computer. Would only use computer to do taxes each year and then put away. Was thinking of getting this dell inspiron 16 laptop for $499, but not sure if anything else is better. Thank you. Did you decide? I was using TaxAct Business online to get around the windows requirement, but decided to look for an alternative when I disagreed with their not letting me take a certain election for a trust (which I believe should be allowed). I'm on MacOS so tried running TurboTax on Parallels but read it won't work as it requires an ARM windows version which isn't compatible with TurboTax. Nonetheless, I installed TurboTax Premium on Parallels and it ran fine. (...
by typical.investor
Mon Mar 04, 2024 4:29 pm
Forum: Personal Investments
Topic: Estimating dividends/interest in retirement planning
Replies: 7
Views: 765

Re: Estimating dividends/interest in retirement planning

Kiana wrote: Mon Mar 04, 2024 12:05 pm I'm curious if anyone attempts to estimate future dividends/interest as part of your retirement income planning? If so, how do you do it? DW will retire this year and I will retire next year.
Yes, and I found it useful.

Schwab just shows it and allows one to download the data which makes it easy to work with in a spreadsheet and forecast how much you will have by your payment dates.
by typical.investor
Mon Mar 04, 2024 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs / Complex Trust 663(b) election
Replies: 9
Views: 1074

Re: Special Needs / Complex Trust 663(b) election

If it's TurboTax, try H&R Block, or vice versa. EDIT: I installed H&R Block Business via Parallels on MacOS successfully and it allows a 663(b) election for a Qualified Disability Trust. Thanks. Yeah, it's TaxAct which is all I can access on a MacOS since it's browser based. I've read TurboTax won't run on Parallels since you need a version for Arm (due to it being Apple Silicon on my machine), but I got the non-business version to do that fine. TurboTax Business doesn't have a trial version and I hesitate to purchase and try. I'm reasonably sure my interpretation is correct and would just manually select both Qualfied Disability Trust and Complex Trust on the 1041 and mail it in, but the TaxAct warranty only applies if you e-file....
by typical.investor
Mon Mar 04, 2024 12:46 am
Forum: Investing - Theory, News & General
Topic: TD Ameritrade to Schwab
Replies: 161
Views: 13588

Re: TD Ameritrade to Schwab transition - how was it for you?

RetiredAL wrote: Mon Mar 04, 2024 12:15 am
boomer_techie wrote: Sun Mar 03, 2024 11:21 pm
comeinvest wrote: Sun Mar 03, 2024 8:59 pm I think Schwab doesn't show cost basis for stocks that are "non-covered", i.e. for which cost basis is not reported to the IRS because they were bought before Jan 1st 2011.
I have stocks at Schwab that I purchased in 1994. The cost basis is shown. When sold, the 1099 shows box E "cost basis not reported to IRS."
That is my experience too. Stocks and Funds that my Dad bought in the 1990's showed their lots and basis (Avg) cost.
If Schwab has a basis, they will show it (and you can import it into your tax software). You can provide missing cost basis at www.schwab.com/gainloss
by typical.investor
Sun Mar 03, 2024 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs / Complex Trust 663(b) election
Replies: 9
Views: 1074

Re: Special Needs / Complex Trust 663(b) election

I think it's just a programmer error. P18 of 1041 instructions states: A. Type of Entity Check the appropriate box(es) that describes the entity for which you are filing the return. In some cases, more than one box is checked. Check all boxes that apply to your trust. On the 1041 form, there is nothing to distinguish "Complex Trust" for "Qualified Disability Trust". It would appear that both could per the directions be selected. In the software however, Complex Trust" and "Qualified Disability Trust" are mutually exclusive choices. Selecting one, deselects the other. I do not believe that is correct. I can just manually make the section on paper after printing the return, but am I out in left field here? W...
by typical.investor
Sun Mar 03, 2024 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs / Complex Trust 663(b) election
Replies: 9
Views: 1074

Special Needs / Complex Trust 663(b) election

I am being told by tax software developers that a Qualified Disability Trust can not take the 663(b) election because it is not a complex trust. They state: Our developers have reviewed your return regarding making the 663(b) election. You currently have "Qualified disability trust". The election cannot be applied to this selection. Per the 1041 Instructions page 37 heading Question 6: Question 6: To make the section 663(b) election to treat any amount paid or credited to a beneficiary within 65 days following the close of the tax year as being paid or credited on the last day of that tax year, check the box. This election can be made by the fiduciary of a complex trust or the executor of a decedent's estate . For the election to ...
by typical.investor
Thu Feb 29, 2024 4:08 am
Forum: Non-US Investing
Topic: How to invest while living in Japan as a dual Japanese/US citizen without getting into major tax trouble?
Replies: 9
Views: 3416

Re: How to invest while living in Japan as a dual Japanese/US citizen without getting into major tax trouble?

However, after doing some research, it seems that I might not really have any options for saving for retirement anymore now that I have moved to Japan. You mention in another thread that Schwab is letting you convert to Schwab International. Problem solved. You have access to all the US domiciled ETFs you need. I suggested SCHX, SCHB or VOO and I still do. Schwab International can't open an account for Japanese residents, so you were fortunate to be holding at Schwab before you move as technically that means it's not a new account for them. If for some reason that doesn't work out, use Interactive Brokers. https://www.interactivebrokers.co.jp/en/home.php Also, NISA's aren't considered pension plans, but if you have a workplace type pension...
by typical.investor
Thu Feb 29, 2024 2:15 am
Forum: Investing - Theory, News & General
Topic: Confused about ETFS vs mutual funds vs index funds
Replies: 6
Views: 1932

Re: Confused about ETFS vs mutual funds vs index funds

However, the S&P500, or in my case, SWPPX, is technically a mutual fund but instead of being actively managed it tracks the fortune 500 stocks so it has a low expense ratio (.02%). Because of this it's called an index fund? I'm just trying to figure out which ETF would be suitable/equivalent choice for hands off investing so that I can get similar performance to SWPPX after I convert my account. Schwab offers: SCHX 750 largest U.S. companies as ranked by full market capitalization 0.030% ER SCHK 1,000 largest U.S. companies Covers approximately 90% or more of the total U.S. stock market capitalization 0.050% ER SCHB 2,500 largest publicly traded U.S. companies 0.030% ER ___________________________________ Or you could use VOO or any of...
by typical.investor
Thu Feb 29, 2024 1:54 am
Forum: Personal Investments
Topic: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023
Replies: 41
Views: 6034

Re: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023

Here is Schwab's QDI data. I believe these follow the FTSE.

Schwab International Equity ETF SCHF 84.96%
Schwab International Dividend Equity ETF SCHY 93.67%
Schwab International Small-Cap Equity ETF SCHC 79.11%
Schwab Emerging Markets Equity ETF SCHE 34.79%

And these are based off Russel indexes (modified by RAFI).
Schwab Fundamental International Large Company Index ETF FNDF 95.85%
Schwab Fundamental International Small Company Index ETF FNDC 93.33%
Schwab Fundamental Emerging Markets Large Company Index ETF FNDE 49.89%
by typical.investor
Thu Feb 29, 2024 12:07 am
Forum: Personal Finance (Not Investing)
Topic: Tax return - Grantor irrevocable trust
Replies: 21
Views: 2163

Re: Tax return - Grantor irrevocable trust

You can see the numbers that will go on the K-1 in some of the previews before filing, but you gotta kinda figure out where to to look and you do need to pay to get the completed K-1. So I have used it for planning purposes (what would be on the 1041 and K-1 if the investment income was this and I distributed this... sort of thing) ... but I'd never try using it and just copying the numbers to a return without paying. It's only $87 (early filing is less), sometimes American Express has a deal if filing late, and it's way too error prone to try to copy piece by piece that way I think. Like some of the codes on the K-1 don't come up in the preview. I've been using the TaxAct online estate and trust version for my first attempt at a 1041. It'...
by typical.investor
Wed Feb 28, 2024 1:24 pm
Forum: Non-US Investing
Topic: Diversifying my portfolio
Replies: 9
Views: 3022

Re: Diversifying my portfolio

What I want to do is slowly decrease my company stock percentage and buy another ETF - preferably USD denominated. Please understand that the currency exposure of an ETF is not determined by what currency it is denominated in, but rather by the revenue of the companies in the ETF. This means that an S&P500 fund has the same currency exposure whether the fund in denominated in USD, EUR or pounds. Hmm....I understand what you're saying, but on the other hand, if I sell off that ETF, I'll get USD. Which by itself is currency diversification in my opinion. During pandemics/Ukraine war, USD/RON varied from 4.00 to 5.30 RON, so a variation of aprox 30%. Euro, on the other hand was much more stable vs RON. It still doesn't matter. Say you wer...
by typical.investor
Wed Feb 28, 2024 5:14 am
Forum: Non-US Investing
Topic: Diversifying my portfolio
Replies: 9
Views: 3022

Re: Diversifying my portfolio

What I want to do is slowly decrease my company stock percentage and buy another ETF - preferably USD denominated. Please understand that the currency exposure of an ETF is not determined by what currency it is denominated in, but rather by the revenue of the companies in the ETF. This means that an S&P500 fund has the same currency exposure whether the fund in denominated in USD, EUR or pounds. So if you earn in EUR for example, it's generally best to buy funds that are denominated in EUR because you won't have to pay a currency conversion fee. If you are earning in RON, and have to choose between a EUR or USD denominated fund, I'd probably choose the one with tighter spreads or the currency that is cheaper to exchange. In other words...
by typical.investor
Tue Feb 27, 2024 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return - Grantor irrevocable trust
Replies: 21
Views: 2163

Re: Tax return - Grantor irrevocable trust

Thank you for such a detailed answer. If it is not available on Mac then it may be a problem. I only have Mac. But I thought the business version is available for Mac? I will have to check. TaxAct Business online may be your only option then. I use that for the trust 1041 return, generate the K-1, and then use TurboTax for individual returns (manually importing the K-1). That's for the Trust and the beneficiary. I am still doing my own taxes in TurboTax so I have it paid for and so use it for the beneficiaries return. TaxAct personal may be able to import the K-1 generated from TaxAct business (I think I saw that ... not 100% sure) but I didn't go that route and the trust I am doing is far less complicated that my own taxes. Thank you. Thi...
by typical.investor
Tue Feb 27, 2024 4:31 pm
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 16926

Re: Retirees apparently tend to maintain assets - lessons for BH investors?

livesoft wrote: Tue Feb 27, 2024 4:07 pm
madbrain wrote: Tue Feb 27, 2024 3:16 pm
livesoft wrote: Tue Feb 27, 2024 7:41 am I don't think anyone in their right mind would not maintain assets until at least age 95.
Some of us have enough medical conditions that make it sufficiently unlikely to live to that age. Family history also informs this.
So you are spending like there's no tomorrow! Is that realistic?
Feeling a compulsion to maintain assets until 95 hardly seems like good advice. Labeling any reduction before then as “spending like there is no tomorrow” is quite extreme and silly. So is saying you are “not in your right mind” unless you do so.
by typical.investor
Tue Feb 27, 2024 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return - Grantor irrevocable trust
Replies: 21
Views: 2163

Re: Tax return - Grantor irrevocable trust

Hi Now I am wondering if I can do this myself using TurboTax? I will need to file a trust return and bring any income from that trust in my person return also. I am looking for experiences and lessons learned from anyone who has done this (or something like this)? How hard it is and what should I be aware of? thank you Hi, I started doing 1041s (trust returns) a couple years ago and found you will need the business version of TurboTax to do a 1041. Can't get it on MacOS so went with TaxAct online. You can play around with it online and see how it works as they don't charge until you actually file. The only thing I don't like is they can't import data from Schwab and it has to be entered. Import works from some firms ... they have a list so...
by typical.investor
Mon Feb 26, 2024 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Protectors, how common?
Replies: 13
Views: 1604

Re: Trust Protectors, how common?

And who will be the superprotector with the power to remove and replace the protector? And who will be the super-superprotector with the power to remove and replace the superprotector? And so on. What is wrong with letting the primary beneficiary decide? That's what my lawyer drew up. This was for a revokable trust. While I am alive and not incapacitated, I may remove any Trust Protector at any time, with or without cause. After my death, the primary beneficiary may remove any Trust Protector serving over his or her trust at any time with or without cause. The removing party may replace the removed Trust Protector with a successor Trust Protector of the type described in Section 9.1. No Trustee may remove a Trust Protector. Perhaps our cir...
by typical.investor
Mon Feb 26, 2024 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return - Grantor irrevocable trust
Replies: 21
Views: 2163

Re: Tax return - Grantor irrevocable trust

Mullins wrote: Mon Feb 26, 2024 3:35 pm H&R Business and Premium can also handle 1041s and corresponding state forms. The software's less expensive than TT, however, it may not be as intuitive in its interview process, so you'd need to know the info needed. For example, I had to research if the trust was complex or simple.
The download is Windows only. None of the online versions seems to support 1041. Neither Premium nor Self-Employed do at least.
by typical.investor
Mon Feb 26, 2024 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return - Grantor irrevocable trust
Replies: 21
Views: 2163

Re: Tax return - Grantor irrevocable trust

Hi Now I am wondering if I can do this myself using TurboTax? I will need to file a trust return and bring any income from that trust in my person return also. I am looking for experiences and lessons learned from anyone who has done this (or something like this)? How hard it is and what should I be aware of? thank you Hi, I started doing 1041s (trust returns) a couple years ago and found you will need the business version of TurboTax to do a 1041. Can't get it on MacOS so went with TaxAct online. You can play around with it online and see how it works as they don't charge until you actually file. The only thing I don't like is they can't import data from Schwab and it has to be entered. Import works from some firms ... they have a list so...