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by typical.investor
Tue Mar 26, 2024 6:01 pm
Forum: Personal Investments
Topic: Horrified by Schwab Platform -- Where to Next?
Replies: 94
Views: 15656

Re: Horrified by Schwab Platform -- Where to Next?

bertilak wrote: Tue Mar 26, 2024 10:24 am Has anybody used Schwab's PC application? This hooks directly to their brokerage and is not a website.
For thinly traded ETFs, I used to use StreetSmart Edge to see level II quotes to get an idea of market depth. I've been moved over to thinkorswim which offers the same thing.
by typical.investor
Mon Mar 25, 2024 3:54 pm
Forum: Personal Investments
Topic: Horrified by Schwab Platform -- Where to Next?
Replies: 94
Views: 15656

Re: Horrified by Schwab Platform -- Where to Next?

I've looked at the Schwab website a few times, when considering where I want to consolidate my assets. Each time I come away somewhat bewildered as to what they offer and why I would want to transfer there. Maybe it's their marketing, or maybe I'm just dumb. IMO, there are only 3 significant differences between Fidelity and Schwab. 1. If you are in retirement distribution mode, Fidelity has excellent automated distribution tools. Schwab does not. 2. Fidelity's 'core' funds pay a decent return. Schwab's 'core' holding pays nil and the user has to transfer those $ into a Money Market Fund to get a decent rate. 3. When cash is need to buy or transfer, Fidelity will use any Money Market Fund, not just the 'core' fund. Schwab requires you sell ...
by typical.investor
Sun Mar 24, 2024 6:35 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on SPDR® MSCI USA StrategicFactors℠ ETF (QUS)?
Replies: 11
Views: 913

Re: Thoughts on SPDR® MSCI USA StrategicFactors℠ ETF (QUS)?

Given AI craze has pushed tech stocks' valuations skyrocket high, I'm looking for a fund which is not so concentrated on the tech sector. It is equally distributed among three styles: value, quality growth, and low volatility, so it is likely to be blend style most of the time. (Now total stock market fund like VTSAX becomes growth style because of the AI craze I mentioned.) Anyone thinks this fund might be worth considering in case of AI bubble burst? I understand your concern and have had similar concerns push me to a value tilt only to see the valuations of expensive stocks rise higher. I maintain my targeted allocation but realize now that the sum of investors decide prices without concern to valuations. As such, I wonder if any revers...
by typical.investor
Fri Mar 22, 2024 4:54 pm
Forum: Personal Consumer Issues
Topic: Walmart Plus Feels Like A Scam
Replies: 53
Views: 5997

Re: Walmart Plus Feels Like A Scam

nisiprius wrote: Fri Mar 22, 2024 4:47 pm The thing that is addictive about Amazon Prime is that shipping is free, period, no ifs, ands, or buts. An even with free shipping, typically--not always, but typically--Amazon prices are competitive with local brick-and-mortar stores.
Ever try buying groceries? Not remotely free.
by typical.investor
Fri Mar 22, 2024 4:54 pm
Forum: Personal Investments
Topic: SIPC insurance for accounts over the $500,000 limit
Replies: 40
Views: 3455

Re: SIPC insurance for accounts over the $500,000 limit

I will point out that the Madoff company that was committing the fraud wasn’t SIPC insured. The legit part was covered by SIPC, was audited, and their clients cane out just fine. SIPC coverage was applied to the assets invested via the investment advisory that wasn't SIPC insured though. This is because Madoff had a brokerage. See https://www.sipc.org/cases-and-claims/open-cases/bernard-l-madoff-investment-securities-llc/ Also see Forbes: "SIPC ... agreed that the direct investors in Madoff accounts (the ones whose names were on those accounts) came under SIPC, despite the fact that they were clearly investment-advisory clients and not brokerage-account clients." So yes, SIPC protection was applied to all Madoff investors who had...
by typical.investor
Fri Mar 22, 2024 4:47 pm
Forum: Personal Investments
Topic: SIPC insurance for accounts over the $500,000 limit
Replies: 40
Views: 3455

Re: SIPC insurance for accounts over the $500,000 limit

Actually, anyone with $1.731 million invested with Madoff was made whole because the first line of defense is recovery of assets. The second line is SIPC protection up to $500k for securities and the third is additional insurance which Madoff didn't carry. It's also useful to point out that Madoff didn't use a third party custodian. I can’t think of any brokerages that use 3rd party custodians. Are you saying Vanguard doesn't? Why don't you ask Bogleheads to rewrite their wiki then? See https://www.bogleheads.org/wiki/Vanguard_safety Vanguard safety addresses investor concerns that holding all their investments at Vanguard, an investment management company, may put their life's savings at risk. Vanguard (and every other US-regulated mutual...
by typical.investor
Fri Mar 22, 2024 4:43 pm
Forum: Personal Investments
Topic: SIPC insurance for accounts over the $500,000 limit
Replies: 40
Views: 3455

Re: SIPC insurance for accounts over the $500,000 limit

Actually, anyone with $1.731 million invested with Madoff was made whole because the first line of defense is recovery of assets. The second line is SIPC protection up to $500k for securities and the third is additional insurance which Madoff didn't carry. It's also useful to point out that Madoff didn't use a third party custodian. I can’t think of any brokerages that use 3rd party custodians. Are you saying Vanguard doesn't? Why don't you ask Bogleheads to rewrite their wiki then? See https://www.bogleheads.org/wiki/Vanguard_safety Vanguard safety addresses investor concerns that holding all their investments at Vanguard, an investment management company, may put their life's savings at risk. Vanguard (and every other US-regulated mutual...
by typical.investor
Fri Mar 22, 2024 3:26 pm
Forum: Personal Consumer Issues
Topic: Walmart Plus Feels Like A Scam
Replies: 53
Views: 5997

Re: Walmart Plus Feels Like A Scam

Was it shipped by Walmart or 3rd party. On 3rd party orders a fee will still apply if applicable Shipped by Walmart. An order of TheraTears (eye drops) that had no extra charge a few days ago now comes with the extra $6.99 charge. For TheraTears (TheraTears Dry Eye Therapy Lubricating Eye Drops for Dry Eyes, 1 fl oz bottle $14.82), I get: Walmart PlusFree shipping, no order minimum FWIW, I've had two times I had to contact Walmart support - (1) groceries didn't arrive to to delivery vehicle breakdown and (2) avacados were too ripe. Both times I could tell the Walmart customer service staff had been trained to make sure I felt like I was a valued customer. It was actually over the top and kind of comical I thought, but the truth is I have n...
by typical.investor
Fri Mar 22, 2024 3:23 pm
Forum: Personal Investments
Topic: SIPC insurance for accounts over the $500,000 limit
Replies: 40
Views: 3455

Re: SIPC insurance for accounts over the $500,000 limit

So the Madoff clients who recovered $500,000 from the SIPC (there were many who did collect) now have no coverage on other brokerage accounts elsewhere? This makes absolutely no sense and just cannot be correct. Why do you think Madoff clients would recover $500,000 from SIPC? That number to be indicated people don't understand how SIPC works. Actually, anyone with $1.731 million invested with Madoff was made whole because the first line of defense is recovery of assets. The second line is SIPC protection up to $500k for securities and the third is additional insurance which Madoff didn't carry. It's also useful to point out that Madoff didn't use a third party custodian. This means that there was never any audits. It's important to note t...
by typical.investor
Fri Mar 22, 2024 2:08 pm
Forum: Personal Consumer Issues
Topic: Walmart Plus Feels Like A Scam
Replies: 53
Views: 5997

Re: Walmart Plus Feels Like A Scam

If you are talking groceries, they do state:
Free delivery from your store*
Get fresh groceries & more with $0 delivery fees, all at the same everyday low prices as in-store.


* $35 order minimum. Restrictions apply.
And you get Paramount Plus with your membership.

You could try to keep a few items (paper towels, kitchen bleach) off the bigger purchases over $35 and only order them when you need a item urgently (milk) to bring the order up to free shipping size.
by typical.investor
Wed Mar 20, 2024 6:08 pm
Forum: Personal Investments
Topic: Financial Adviser and Investment Adviser at Schwab
Replies: 9
Views: 1079

Re: Financial Adviser and Investment Adviser at Schwab

They assigned me an consultant and he's very friendly but the last three questions I asked him in person when transferring additional asset and he didn't know and never got back to me. The questions were: 1) Foreign banking - I want to be able to withdraw and deposit cash from Schwab money market or checking/saving accounts while abroad. I don't want to carry large sum of cash through airports and would rather withdraw money either in USD or local currency to spend and deposit whatever I didn't spend or give away back in. Use their debit card. They reimburse ATM fees worldwide and don't have a foreign transaction fee. 2) Trust - I want to setup a trust to protect my asset from potential raiders. Schwab doesn't offer legal advice. If you wa...
by typical.investor
Wed Mar 20, 2024 5:14 pm
Forum: Personal Investments
Topic: Direct Indexing - Morgan Stanley
Replies: 25
Views: 1958

Re: Direct Indexing - Morgan Stanley

rleechb wrote: Wed Mar 20, 2024 11:52 am
I saw that Schwab does it for .4%, but I kind of hate the idea of managing the portfolio myself (I assume that’s what I’d have to do, right?).
I believe the 0.4% you pay to Schwab covers the management.
by typical.investor
Wed Mar 20, 2024 3:33 pm
Forum: Personal Investments
Topic: Financial Adviser and Investment Adviser at Schwab
Replies: 9
Views: 1079

Re: Financial Adviser and Investment Adviser at Schwab

Hello Community, I am new at Schwab from TD (I truly miss it) and would like to ask if they provide in-house advisors for financial and investment discussions and advices like TD did and Vanguard does for those with high balance. Lacking the financial upbringing and temperament, I simply made two mistakes that have haunted me financial for many years. I am doing catch-up and days like today clear shows that an index is a good to go from the get-go. But part of me still want a mixture of income generators, which would prevent me to sell to generate cash for spending, in depressed sectors. So far, I am very heavy in REIT and had made a lot of money on some but have paper loss on big position like Realty Income due to its pull-back a within t...
by typical.investor
Tue Mar 19, 2024 7:10 pm
Forum: Non-US Investing
Topic: Moving US → UK as a US NRA, UK citizen.
Replies: 5
Views: 1427

Re: Moving US → UK as a US NRA, UK citizen.

Thank you both for your replies. If IB is following PRIIPs and won't allow her to buy US domiciled ETFs, do you have any suggestions for how to create a US/UK move-resistant portfolio? :confused It seems very hard assuming that the US penalizes you for having non-US domiciled funds but UK brokers won't let you buy US domicile. I've heard about getting around PRIIPs by buying individual options rather than ETFs, but we want something that's easy to manage. Let your friend use your US address (if you have one) to keep investing in US domiciled ETFs if she plans to return, or find someone who does. You have to be careful to not be in one of the 'sticky' states that would try to tax you, but you have to be aware of that even without trying to ...
by typical.investor
Tue Mar 19, 2024 7:03 pm
Forum: Non-US Investing
Topic: Seeking advice for existing portfolios when moving outside of US
Replies: 6
Views: 1086

Re: Seeking advice for existing portfolios when moving outside of US

Thanks all for the comments. Based on the discussion, I did the following: Pinged both Schwab International and IB. SI confirmed I can convert the account to international and sent the form I can use for that. They also confirmed I will be able to use it fully and it will not be liquidated. As mentioned here, US tax documents will be provided, Serbian ones not. IB is similar, I can to an in-kind transfer of positions from Schwab and then just change the address. For tax purposes it is pretty much the same, US tax documents will be provided, Serbian not. Great! Glad it will work out. SI is simpler to use and has better support but IB might have a little better exchange rate if you need to move your cash into USD to invest. I wonder if the f...
by typical.investor
Tue Mar 19, 2024 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Question regarding taxes and foreign earned income exclusion
Replies: 6
Views: 612

Re: Question regarding taxes and foreign earned income exclusion

cheesepep wrote: Tue Mar 19, 2024 4:08 am
typical.investor wrote: Tue Mar 19, 2024 3:15 am Why didn’t you do tax scenario 3 - paying US taxes on all the income and claiming a credit for foreign taxes paid? Or do you already know the U.S. rate is higher than you paid on the foreign income.

It probably is, but in some higher tax countries claiming the credit instead of using the FEIE works better.
That may work, but what form and line would I put that on? I did not receive any 1099-MISC. It was all cash. Thanks for the suggestion.
Cash is fine as long as you know what you paid in foreign taxes.

It goes on form 1116. See (opens for me at the bottom and I have to scrol to the top to see it). https://tax.thomsonreuters.com/blog/for ... d-to-know/
by typical.investor
Tue Mar 19, 2024 3:15 am
Forum: Personal Finance (Not Investing)
Topic: Question regarding taxes and foreign earned income exclusion
Replies: 6
Views: 612

Re: Question regarding taxes and foreign earned income exclusion

Why didn’t you do tax scenario 3 - paying US taxes on all the income and claiming a credit for foreign taxes paid? Or do you already know the U.S. rate is higher than you paid on the foreign income.

It probably is, but in some higher tax countries claiming the credit instead of using the FEIE works better.
by typical.investor
Tue Mar 19, 2024 3:03 am
Forum: Non-US Investing
Topic: Seeking advice for existing portfolios when moving outside of US
Replies: 6
Views: 1086

Re: Seeking advice for existing portfolios when moving outside of US

:| Hello, I'm an US citizen currently residing in USA (for the last 10 years). I have a portfolio kept in Schwab that is a few single stocks and few major ETFs (VOO, VT). I am looking at potentially moving to Serbia (non-EU country in SE Europe) in the next few months, so I chatted with Schwab today to see what my options were. To my great dismay, it turns out they would actually liquidate my account and give me the cash. This, of course, is very, very bad for me, and I would love to avoid it if at all possible, mostly because I read various topics on this forum and over the Internet and it seems my investment options as an US expat are...slim, shall we say? That is, IIUC. What I'm interested in is did anyone here do something similar to th...
by typical.investor
Sun Mar 17, 2024 6:15 pm
Forum: Non-US Investing
Topic: Investing in France
Replies: 3
Views: 1059

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: 6431

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: 29290

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: 29290

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: 29290

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: 29290

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: 370

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: 105032

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: 50316

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: 19971

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: 1385

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: 5209

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: 657

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: 657

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: 1854

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: 1854

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: 1854

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: 105032

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: 1854

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: 557

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: 2839

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: 467

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: 2839

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: 1117

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: 1117

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: 3822

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: 3822

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: 3822

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: 6998

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: 1117

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: 1832

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: 1832

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. (...