Search found 377 matches

by JimInIllinois
Tue Oct 20, 2020 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Administration of Testamentary Trusts
Replies: 34
Views: 1759

Re: Administration of Testamentary Trusts

They will need to file annual income tax returns for the trusts. Free if they do it themselves, otherwise it's an expense.
by JimInIllinois
Sat Sep 05, 2020 10:41 am
Forum: Personal Investments
Topic: Do I really own anything if everything can require a Medallion signature which I can never get?
Replies: 71
Views: 7884

Re: Do I really own anything if everything can require a Medallion signature which I can never get?

I've only ever needed a Medallion guarantee when acting as an executor, to transfer the decedent's accounts to the name of the estate, and even then I don't think Vanguard required it because the transfer was to the estate, not me. Transferring shares directly from the decedent to myself would have ...
by JimInIllinois
Thu May 28, 2020 5:09 pm
Forum: Investing - Theory, News & General
Topic: Why math, why? [How do I calculate portfolio gain/loss from asset allocation?]
Replies: 15
Views: 1656

Re: Why math, why?

I think I read somewhere that a 4% drop in the S&P equalled a 1% drop for a 50/50 portfolio, but that may be wrong too and I'm looking at a 60/40 portfolio. A 4% drop in stocks equals a 1% change in the allocation ratio of a 50/50 portfolio, turning it into a 49/51 portfolio. That's an interest...
by JimInIllinois
Thu May 28, 2020 4:23 pm
Forum: Investing - Theory, News & General
Topic: Why math, why? [How do I calculate portfolio gain/loss from asset allocation?]
Replies: 15
Views: 1656

Re: Why math, why?

jvini wrote: Thu May 28, 2020 12:41 pm I think I read somewhere that a 4% drop in the S&P equalled a 1% drop for a 50/50 portfolio, but that may be wrong too and I'm looking at a 60/40 portfolio.
A 4% drop in stocks equals a 1% change in the allocation ratio of a 50/50 portfolio, turning it into a 49/51 portfolio.
by JimInIllinois
Sun Mar 22, 2020 11:54 pm
Forum: Investing - Theory, News & General
Topic: It's Not Different This Time
Replies: 378
Views: 40417

Re: It's Not Different This Time

It's the area under the curve that matters, not the height of the spike. Businesses are being forced to shut down either directly by the government or because their customers vanished overnight, and they are laying people off immediately to conserve assets so that they can survive the shutdown. The...
by JimInIllinois
Sun Mar 22, 2020 10:57 pm
Forum: Investing - Theory, News & General
Topic: It's Not Different This Time
Replies: 378
Views: 40417

Re: It's Not Different This Time

https://www.buzzfeednews.com/article/lamvo/coronavirus-update-charts-unemployment-claims-laid-off-jobs https://pbs.twimg.com/media/ETvZvnYXQAI1bJ5?format=png&name=small I don't know. I think it feels like it could be kind of different. It's the area under the curve that matters, not the height ...
by JimInIllinois
Sat Mar 21, 2020 11:29 am
Forum: Personal Investments
Topic: House Down Payment - What to do now?
Replies: 11
Views: 798

Re: House Down Payment - What to do now?

You should at least keep looking and make a low-ball offer if you find the perfect house, especially if it is vacant. Anyone who "must sell" is going to be scared. Real estate is considered an essential service under the Illinois shelter-in-place order.
by JimInIllinois
Tue Mar 03, 2020 9:52 pm
Forum: Personal Consumer Issues
Topic: Help/Advice with Decluttering
Replies: 37
Views: 2841

Re: Help/Advice with Decluttering

Selling them now to someone who you know wants them will be much easier than donating or recycling them later.
by JimInIllinois
Sun Mar 01, 2020 10:06 pm
Forum: Personal Investments
Topic: My class A UPS shares dropped 24% right before I was about to sell
Replies: 12
Views: 1688

Re: My class A UPS shares dropped 24% right before I was about to sell

Paying off the car is a 4% tax-free guaranteed return, better than any bond. Back up the truck!
by JimInIllinois
Tue Feb 25, 2020 11:09 am
Forum: Personal Finance (Not Investing)
Topic: 1041 Estate - very high tax rate
Replies: 15
Views: 1062

Re: 1041 Estate - very high tax rate

There was a ~3000 cremation/burial cost. He just paid it himself out of his checking account though. Is there a way to claim this as an expense against the estate? The estate can reimburse him for the burial, but cannot deduct it on the estate's income tax return (form 1041). Funeral/burial expense...
by JimInIllinois
Tue Feb 25, 2020 10:41 am
Forum: Personal Finance (Not Investing)
Topic: 1041 Estate - very high tax rate
Replies: 15
Views: 1062

Re: 1041 Estate - very high tax rate

Thanks Mark. In that case it looks like the estate will owe taxes on the undistributed $1,500 (less the exclusion and any expense deductions) and receive a refund to distribute.
by JimInIllinois
Tue Feb 25, 2020 8:51 am
Forum: Personal Finance (Not Investing)
Topic: 1041 Estate - very high tax rate
Replies: 15
Views: 1062

Re: 1041 Estate - very high tax rate

The estate should have a $15,500 income distribution deduction, and the siblings should each receive a form K-1 showing $7,750 in income (on which they will have to pay taxes). There is also likely a way to include the withheld taxes on the K-1 so they can count it towards their liability. From the...
by JimInIllinois
Mon Feb 24, 2020 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: 1041 Estate - very high tax rate
Replies: 15
Views: 1062

Re: 1041 Estate - very high tax rate

-The check for $17000 (really 15,500 as 1500$ were withheld for federal taxes) was sent to the executor (my friend and the deceased's son) and cashed. Half was kept by him and the other half was given to a sibling. This was done in Nov 2019. Date of Death was in June The estate should have a $15,50...
by JimInIllinois
Thu Feb 20, 2020 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Why doesn't everyone own a home as a business and rent elsewhere?
Replies: 57
Views: 7428

Re: Why doesn't everyone own a home as a business and rent elsewhere?

Being a renter is starting to sound a little more appealing as I get older and more sick of dealing with maintenance, however, I have never rented in my life, so I'm sure there are drawbacks I'm not thinking of. As a homeowner you can pay people to do the maintenance tasks you are sick of, and if y...
by JimInIllinois
Wed Feb 19, 2020 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Why doesn't everyone own a home as a business and rent elsewhere?
Replies: 57
Views: 7428

Re: Why doesn't everyone own a home as a business and rent elsewhere?

I have 2 siblings that live in the same Neighborhood 1 is a CPA and they conspired to sell to each other and rent to each-other after the standard deduction doubled. I imagine that this practice is very uncommon but on paper it is genius. Can you explain how the math works on this? I must be missin...
by JimInIllinois
Tue Feb 18, 2020 10:47 pm
Forum: Investing - Theory, News & General
Topic: Total Stock Market Index - Section 199A dividends this year
Replies: 169
Views: 21964

Re: Total Stock Market Index - Section 199A dividends this year

Thank you, I was going to call Vanguard about it. It is not just VTSAX, a few other funds we hold have the QBI deduction this year which adds up to a nice sum. Which means we lost out on that last year because ... Vanguard did not report it? I think the law or IRS guidance changed. It appears that ...
by JimInIllinois
Sun Feb 16, 2020 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Why doesn't everyone own a home as a business and rent elsewhere?
Replies: 57
Views: 7428

Re: Why doesn't everyone own a home as a business and rent elsewhere?

Let me try to do the math on this. You and your clone buy identical houses and rent them to each other. Each year you pay each other R in rent, and pay M in mortgage interest, T in property taxes, and E in other expenses. The rent you pay is not deductible, but the net rental income, R - M -T - E, i...
by JimInIllinois
Sat Feb 15, 2020 2:45 pm
Forum: Investing - Theory, News & General
Topic: Total Stock Market Index - Section 199A dividends this year
Replies: 169
Views: 21964

Re: Total Stock Market Index - Section 199A dividends this year

Is there any chance that Vanguard will re-issue 2018 1099-DIV forms to reflect 199A dividends? It seems that the tax law, structure, and composition of the funds is unchanged for 2019 so that 199A dividends could have been reported for 2018 if the regulations had been in place.
by JimInIllinois
Wed Feb 05, 2020 9:52 pm
Forum: Personal Consumer Issues
Topic: Examples of Low Tech Improving Your Life
Replies: 216
Views: 19310

Re: Examples of Low Tech Improving Your Life

5. Newspaper delivered to my home. Only checkout the news once in the morning and reading a physical paper is great. Having a news app on the phone I was checking it far too frequently and was bombarded with constant notifications. I did this until delivery became unreliable. Now I subscribe to the...
by JimInIllinois
Sun Jan 26, 2020 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Depositing a deceased spouse's check into a joint bank account
Replies: 21
Views: 8420

Re: Depositing a deceased spouse's check into a joint bank account

Depositing the checks to a joint account is much easier than going back to the payor and asking for a check issued to the estate. Having the check reissued to the estate is not necessary in my experience. Checks payable to the decedent can be deposited into an estate account directly by the executor.
by JimInIllinois
Tue Dec 31, 2019 10:08 am
Forum: Personal Investments
Topic: Capital Gains Harvesting - Lots with Largest or Smallest Gains
Replies: 26
Views: 2001

Re: Capital Gains Harvesting - Lots with Largest or Smallest Gains

Since your goal is to move your assets to a 3-fund portfolio, you should sell the lots with the highest basis (i.e., the lowest gains) since this allows you to move the most assets to your preferred portfolio with the least taxes. As for the low-basis, high-gain shares, consider donating them to cha...
by JimInIllinois
Sat Nov 16, 2019 9:37 pm
Forum: Personal Investments
Topic: Stable Value vs.Money Market
Replies: 3
Views: 592

Re: Stable Value vs.Money Market

Check the liquidity restrictions on the stable value fund. For ours you can't transfer from stable value to money market, but you can transfer to something more risky like a stock fund. They don't want people jumping in and out of the fund if money market rates spike. It's still likely a fine choice.
by JimInIllinois
Wed Nov 06, 2019 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Transferring Daughter's Funds to Her Efficiently
Replies: 16
Views: 1639

Re: Transferring Daughter's Funds to Her Efficiently

R2 wrote: Wed Nov 06, 2019 8:07 pm Is there any problem with me two give two "gifts" of shares over two years to not exceed the yearly limit?
No problem, but you could also split the gift between you and your wife (the limit is per recipient per giver).
by JimInIllinois
Tue Jun 25, 2019 10:33 pm
Forum: Investing - Theory, News & General
Topic: When the Conventional Wisdom about Taxes in Retirement is Wrong
Replies: 26
Views: 3976

Re: When the Conventional Wisdom about Taxes in Retirement is Wrong

It's a wash. You can contribute to a pre-tax account while simultaneously Roth converting other pre-tax qualified assets, or you can just change your contributions to Roth. The taxes and benefits are identical. It depends on your state. Illinois doesn't tax Roth conversions, so better to contribute...
by JimInIllinois
Sat May 18, 2019 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 419
Views: 23191

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Marginal Tax Rate is the percent increase (decrease) in tax liability due to adding (subtracting) $1 of income, i.e. it is the tax rate on the "next" ("last") dollar of income. It is customary to ignore changes in the marginal rate that are due to rounding, tax tables, and other...
by JimInIllinois
Fri May 17, 2019 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 419
Views: 23191

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

How about this: A taxpayer's marginal tax rate is the amount by which tax liability increases due to a small increase in income, expressed as the percentage of the income increase by which the tax liability increases. For example, if earning an additional $20 per year would increase your tax liabili...
by JimInIllinois
Tue May 07, 2019 9:54 pm
Forum: Personal Investments
Topic: I will inherit 2Mil What to do with it?
Replies: 54
Views: 8811

Re: I will inherit 2Mil What to do with it?

hawaii808 wrote: Tue May 07, 2019 9:14 pm I want to retire on on the 2 mIl as I am 70 of age.
You should at least research putting some of it into an immediate fixed annuity.
by JimInIllinois
Sat Apr 27, 2019 3:05 pm
Forum: Personal Investments
Topic: Early Retirement Fixed Annuity?
Replies: 9
Views: 775

Re: Early Retirement Fixed Annuity?

The main reason to buy an annuity is to get paid for taking on mortality risk, i.e., for having your payments stop if you and your spouse die. If this risk is low (five years when you're relatively young) you shouldn't expect to be paid much for it. If you sign up at age 65 for payments starting at ...
by JimInIllinois
Sun Mar 31, 2019 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Finish backyard before selling?
Replies: 25
Views: 2244

Re: Finish backyard before selling?

Can you post a picture? How bad is this backyard? Its hard to fathom what is really entailed to advise you. For 30k, it sounds like there is no landscaping there at all. Is that true? zero, nada, nothing but dirt n' weeds :) . However, the front yard is really nicely landscaped though per the build...
by JimInIllinois
Tue Feb 19, 2019 9:50 pm
Forum: Personal Investments
Topic: Tilting AA into more stocks
Replies: 20
Views: 1382

Re: Tilting AA into more stocks

It is a good point that capital gains become taxable in case of changing funds, but could you clarify what is meant by changing funds? Selling & buying shares of different index funds? Yes, if you have capital gains in a taxable account in, for example, a target date fund, and realize you would...
by JimInIllinois
Sun Feb 17, 2019 11:22 pm
Forum: Personal Investments
Topic: Tilting AA into more stocks
Replies: 20
Views: 1382

Re: Tilting AA into more stocks

Based on the same logic, I'm not worried too much about tax efficiency at the present time, since my assets are so small (due to the late start) that it practically makes no difference. Having said that, I thought that I could increase my retirement assets quite a bit by exposing my portfolio to mo...
by JimInIllinois
Sun Feb 17, 2019 10:41 pm
Forum: Personal Investments
Topic: Tilting AA into more stocks
Replies: 20
Views: 1382

Re: Tilting AA into more stocks

Since you want to do something more complex than a target retirement fund, maybe you should look at using a three-fund portfolio to adjust your asset location for tax efficiency? You may also consider alternatives to a bond fund such as I-bonds or a stable value fund.
by JimInIllinois
Sat Jan 12, 2019 12:51 pm
Forum: Personal Investments
Topic: IRS trouble due to "U.S. Savings Bond Interest Previously Reported"?
Replies: 5
Views: 586

Re: IRS trouble due to "U.S. Savings Bond Interest Previously Reported"?

Is this a hypothetical question? Like maybe you are wondering whether you should include the EE bond interest on a final return that hasn't been filed yet? (In which case, I think the answer is that you ("you" being the person who inherits the EE bonds from the deceased) keep the relevant...
by JimInIllinois
Sat Jan 12, 2019 12:07 pm
Forum: Personal Investments
Topic: IRS trouble due to "U.S. Savings Bond Interest Previously Reported"?
Replies: 5
Views: 586

IRS trouble due to "U.S. Savings Bond Interest Previously Reported"?

Has anyone ever had a problem with the IRS due to subtracting inherited savings bond interest that was included on the decedent's final tax return? It seems like making a large amount of interest reported on a 1099-INT go away with a single line of generic text and no documentation might raise a red...
by JimInIllinois
Wed Nov 28, 2018 9:58 pm
Forum: Investing - Theory, News & General
Topic: How to place windfall into stocks
Replies: 6
Views: 1224

Re: How to place windfall into stocks

If you are on an asset allocation glide path then I wouldn't put a big chunk of new money in stocks that you would be pulling out again in under five years. Invest the windfall so that your overall asset allocation is where you want it five years from now, then keep your asset allocation constant fo...
by JimInIllinois
Wed Oct 31, 2018 1:16 am
Forum: Personal Consumer Issues
Topic: Luxury Sedans for around $25k used with lower miles? AWD?
Replies: 38
Views: 3122

Re: Luxury Sedans for around $25k used with lower miles? AWD?

You can get a new Subaru for around this price. AWD and collision avoidance standard. Not "luxury" but plenty nice.
by JimInIllinois
Sat Oct 27, 2018 3:24 pm
Forum: Personal Consumer Issues
Topic: Just Moved. Furnishing Apartment. Beanbag recommendations
Replies: 19
Views: 2220

Re: Just Moved. Furnishing Apartment. Beanbag recommendations

Go on craigslist and buy real furniture from someone who is leaving town.
by JimInIllinois
Tue Oct 23, 2018 10:07 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 155
Views: 20712

Re: Debunking Bonds in Taxable

One scenario I can envision where bonds in taxable is beneficial is: -You retire early (before 59 1/2) -The market is in a downturn so you don't want to sell stocks from taxable accounts -You can't access bonds without special withdrawals from IRAs (like 72t) Why would you not want to sell stocks f...
by JimInIllinois
Mon Oct 22, 2018 10:49 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 155
Views: 20712

Re: Debunking Bonds in Taxable

One scenario I can envision where bonds in taxable is beneficial is: -You retire early (before 59 1/2) -The market is in a downturn so you don't want to sell stocks from taxable accounts -You can't access bonds without special withdrawals from IRAs (like 72t) Why would you not want to sell stocks f...
by JimInIllinois
Mon Oct 22, 2018 8:49 pm
Forum: Personal Investments
Topic: Very short term taxable
Replies: 2
Views: 355

Re: Very short term taxable

Vanguard has several good money market funds (prime, federal, and treasury) paying over 2%, plus a California municipal money market fund. https://investor.vanguard.com/mutual-funds/list?filterAllAssetClasses=false&filterMoneyMarket=true&filterFiftyThousandAndUp=true&filterLowCostInvesto...
by JimInIllinois
Fri Aug 24, 2018 12:12 am
Forum: Personal Investments
Topic: Inheritance—Advice Requested
Replies: 63
Views: 7586

Re: Inheritance—Advice Requested

Why not Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) in place of VIOO in taxable?
It has a lower expense ratio (.09% vs .15%) and should save on income taxes while tracking the same index.
by JimInIllinois
Fri Aug 10, 2018 9:24 am
Forum: Personal Consumer Issues
Topic: Should I Buy a Tablet?
Replies: 16
Views: 1577

Re: Should I Buy a Tablet?

Buy a Fire HD 8 for $60 (https://www.amazon.com/dp/B01J94T4R2/re ... ab_ds?th=1) and see what you like/hate about it.
Personally I like having a tablet just for books/video that doesn't have my email etc. on it for security reasons.
by JimInIllinois
Tue Jun 12, 2018 11:58 pm
Forum: Investing - Theory, News & General
Topic: Paul Merriman criticism?
Replies: 73
Views: 14673

Re: Paul Merriman criticism?

Please pardon a noon question. Has anyone figured out how to implement International Small Cap via Schwab or Vanguard? Also, how do folks allocated to US LC, US SC, Intl LC, Intl SC? I am sorry for the stupid question. If the question is inappropriate please let me know that too! At https://paulmer...
by JimInIllinois
Mon Apr 02, 2018 8:42 pm
Forum: Personal Consumer Issues
Topic: New Microwave - what to select?
Replies: 11
Views: 1597

Re: New Microwave - what to select?

Panasonic Inverter. Low power is actually low power, not high power alternating with off.
by JimInIllinois
Sat Feb 10, 2018 9:37 pm
Forum: Personal Consumer Issues
Topic: Does it ever make sense to buy a new car?
Replies: 103
Views: 10749

Re: Does it ever make sense to buy a new car?

Buy out the 2015 Camry, then save for a couple of years and buy your wife a new car with cash.
by JimInIllinois
Sat Jan 20, 2018 2:15 pm
Forum: Personal Consumer Issues
Topic: Clothes hanger/closet question
Replies: 3
Views: 693

Re: Clothes hanger/closet question

A couple ideas from searching for "perpendicular clothes rail": http://www.sdslondon.co.uk/pull-out-wardrobe-rails.html http://www.theshopfittingshop.co.uk/12-notch-waterfall-wall-mounted-sloped-clothes-rail-1058-p.asp https://www.woodworkerexpress.com/adjustable-laundry-valet-chrome-finis...
by JimInIllinois
Mon Jan 15, 2018 11:16 pm
Forum: Personal Investments
Topic: Help with tax efficient asset allocation for taxable account
Replies: 16
Views: 2851

Re: Help with tax efficient asset allocation for taxable account

boglenobNYC wrote: Mon Jan 15, 2018 10:44 pm I don't have tax-advantaged account and not planning to have. I have a goal of early retirement abroad.
OK, that's outside my experience. I hope you've done your homework on this.
by JimInIllinois
Mon Jan 15, 2018 10:38 pm
Forum: Personal Investments
Topic: Help with tax efficient asset allocation for taxable account
Replies: 16
Views: 2851

Re: Help with tax efficient asset allocation for taxable account

Have you seen https://www.bogleheads.org/wiki/Tax-managed_fund_comparison ? If you have savings in tax-advantaged accounts, look at the asset allocation across your entire portfolio rather than treating taxable and tax-advantaged separately, so you could put small caps in tax-advantaged and S&P ...
by JimInIllinois
Mon Jan 15, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: DFA Has Introduced Target Date Funds - LifeCycle Based?
Replies: 64
Views: 10452

Re: DFA Has Introduced Target Date Funds - LifeCycle Based?

Wondering if there are any updated opinions on the DFA Dimensional Target Date Retirement Income Funds two years in. https://us.dimensional.com/funds/dimensional-2025-target-date-retirement-income-fund https://www.tiaa.org/public/investment-performance/nonpropmutualfunds/profile?ticker=92810731 http...
by JimInIllinois
Sat Jan 13, 2018 7:25 pm
Forum: Personal Consumer Issues
Topic: Replacement Suggestions For Microwave Oven
Replies: 22
Views: 2589

Re: Replacement Suggestions For Microwave Oven

I'd recommend an "inverter" model. On most microwaves the different power levels are achieved by turning full power on and off on a cycle of 15 seconds or so, so at power level 5 you get 10 for 7.5 seconds and 0 for 7.5 seconds. An inverter model applies lower power continuously, which I t...