Search found 7014 matches

by Wagnerjb
Wed Jan 17, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased mother's Financial Advisor wants $500+ to convert to bene IRA
Replies: 28
Views: 1579

Re: Deceased mother's IRA co wants $500+ to convert to bene IRA

How large is the IRA? Would you consider taking a complete distribution?
by Wagnerjb
Tue Jan 16, 2018 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: New HSA Account
Replies: 7
Views: 558

Re: New HSA Account

Thanks Andy d) If another person makes a contribution to her HSA, she - not the other person - gets a tax deduction for that amount. So I can contribute $6900 and when we file 2018 taxes,I can add $6900 to the standard deduction of 24K as tax deductible since we file jointly? I thought you said tha...
by Wagnerjb
Tue Jan 16, 2018 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: New HSA Account
Replies: 7
Views: 558

Re: New HSA Account

Is she the only one who can make the contribution to HSA ? If yes, does it have to be from her paycheck/roll or can it be from a bank/taxable account later in the year ? She is not the only one who can contribute. Her employer can contribute. She can contribute directly to the HSA. And anyone else ...
by Wagnerjb
Tue Jan 16, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1336

Re: 529 AND UTMA

For those that have done the UTMA, logistically how do you fund the child expenses? Do you just spend throughout the year for your child, then at end of year add it up and withdraw approprate amount from UTMA? Or withdraw at beginning of year up to maximum that would be tax free then spend througho...
by Wagnerjb
Tue Jan 16, 2018 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1336

Re: 529 AND UTMA

On a separete note, I just opened up a Vanguard UTMA account online. I would like to gift shifts preserving cost basis to the UTMA account but not quite sure. I called Vanguard and the rep told me to do the "Exchange (sell to buy) Vanguard Funds" option to move the shares from my vanguard brokerage...
by Wagnerjb
Tue Jan 16, 2018 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1336

Re: 529 AND UTMA

I realize it is water under the bridge, but the purpose of this forum is to inform others as well. Not to quibble, but the valid UTMA distribution determination is not essential vs non-essential, but rather parental support obligation or not. While braces may be somewhat optional, but they are not ...
by Wagnerjb
Tue Jan 16, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1336

Re: 529 AND UTMA

Yes this is my first child. I may or may not have another. From all this discussion, it seems i can capture all the positives but none of the negatives by contributing low cost basis stocks (maybe $10-20k worth?) first couple years of his life to UTMA then rest of time will contribute to a 529. Thi...
by Wagnerjb
Mon Jan 15, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018
Replies: 4
Views: 767

Re: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018

I just ran some numbers through it. It appears to not take into account the 3.8% Net Investment Income tax, on investment income when your income is over $250k. Other than that, it matched my spreadsheet to the penny.

Best wishes.
by Wagnerjb
Mon Jan 15, 2018 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax 2018 with respect to LTCG
Replies: 1
Views: 253

Re: Kiddie Tax 2018 with respect to LTCG

You might want to read this recent thread, where the issues you raise were discussed: https://www.bogleheads.org/forum/viewtopic.php?t=235647 Personally, I am unclear about the current $1,050 tax free threshold for the Kiddie Tax. Right now (for 2017), a child gets a $1,050 standard deduction....and...
by Wagnerjb
Sun Jan 14, 2018 8:51 pm
Forum: Investing - Theory, News & General
Topic: Tax Exempt Bond Funds - Considerations after Tax Reform
Replies: 12
Views: 1816

Re: Tax Exempt Bond Funds - Considerations after Tax Reform

One also has to be alert to the hidden marginal rates (27%) that occur below the 24% bracket for people with significant dividend and capital gain income. Can you kindly elaborate on how the 27% marginal rate comes about? I expect minimal dividends and no cap gains for 2018, but I hope to convert t...
by Wagnerjb
Sun Jan 14, 2018 12:01 pm
Forum: Investing - Theory, News & General
Topic: Tax Exempt Bond Funds - Considerations after Tax Reform
Replies: 12
Views: 1816

Re: Tax Exempt Bond Funds - Considerations after Tax Reform

One also has to be alert to the hidden marginal rates (27%) that occur below the 24% bracket for people with significant dividend and capital gain income. Can you kindly elaborate on how the 27% marginal rate comes about? I expect minimal dividends and no cap gains for 2018, but I hope to convert t...
by Wagnerjb
Sat Jan 13, 2018 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversions at 24%(CA -> WA)
Replies: 4
Views: 505

Re: Roth conversions at 24%(CA -> WA)

I think this is one of the lowest marginal tax bracket I might see in my working life and it might not stay there more than few years. I am 60 and I feel the same way. Like you, I am converting to a Roth up to the top of the 24% bracket, and I know several of my friends who are doing the same thing...
by Wagnerjb
Fri Jan 12, 2018 8:16 pm
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 41
Views: 3840

Re: Tax Reform - Revised Kiddie Tax

Andy, What is your understanding of the changes? There is standard deduction for dependents, and there are standard deductions for kiddie tax. There are two separate issues even though a dependent can also be subject to the kiddie tax. Yes, it is complicated. Huey: I am not qualified to read the ta...
by Wagnerjb
Fri Jan 12, 2018 3:45 pm
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 41
Views: 3840

Re: Tax Reform - Revised Kiddie Tax

Came across this jaw-dropper from the Nolo website. Reference: https://www.nolo.com/legal-encyclopedia/kiddie-tax-limits-shifting-unearned-30003.html "Impact of Increased Standard Deduction All taxpayers, including children, are entitled to take a standard deduction on their taxes. Any unearned inc...
by Wagnerjb
Thu Jan 11, 2018 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs Trust Tax Strategies
Replies: 5
Views: 263

Re: Special Needs Trust Tax Strategies

I help with the taxes for my brother's SNT. (Another brother is the trustee). I would not be as concerned as you are about filing a tax return for the first time, as I am in those same shoes where my brother may have to file a personal tax return (for the first time in over a decade) in a few years....
by Wagnerjb
Thu Jan 11, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 41
Views: 3840

Re: Tax Reform - Revised Kiddie Tax

For what it's worth, I stumbled upon this: https://braggfinancial.com/index.php?display=KiddieTaxUpdate It states that "In 2018, unearned income under the $2,100 Kiddie Tax threshold will continue to be taxed at the child's rate. However, as a result of the TCJA, unearned income exceeding this thre...
by Wagnerjb
Sat Jan 06, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Does all net income that doesn’t get paid out as a dividend add to a company’s equity?
Replies: 9
Views: 853

Re: Does all net income that doesn’t get paid out as a dividend add to a company’s equity?

I used to think that 100% of a company’s net income would either get paid out as dividends or add to a company’s retained earnings but I’ve realized that, in a lot of cases, some of a company’s net income just seems to disappear. Where does this additional net income go? Would paying off debt with ...
by Wagnerjb
Fri Jan 05, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: How Many Stocks Are Really Needed in Index Funds?
Replies: 52
Views: 3030

Re: How Many Stocks Are Really Needed in Index Funds?

How do you maintain a portfolio of the 50 largest stocks with zero expenses? And if you are a VHNW individual, you have people for that. More expenses. With Vanguard Flagship Services ($2 trades) you could probably get expenses down to .001% with a $1M portfolio. This approach would also open up lo...
by Wagnerjb
Fri Jan 05, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: anyone considering cashing in some 401k money at the new lower tax rate?
Replies: 9
Views: 1164

Re: anyone considering cashing in some 401k money at the new lower tax rate?

+1 How about a third possibility? Should you convert to the top of your tax bracket (or next bracket) from 401k (or via IRA) to Roth IRA? Are you older than 59.5 so there are no penalties? This is what I am doing, along with my brother and one of my close friends. I am pleasantly surprised that we ...
by Wagnerjb
Fri Jan 05, 2018 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Avoid deducting traditional IRA for backdoor roth
Replies: 5
Views: 577

Re: Avoid deducting traditional IRA for backdoor roth

Why wouldn't you just let your wife's contribution be a deductible IRA? So you reduce your income by $5500 due to her contribution and then you increase your income by $5500 by converting her IRA to a Roth. Don't you end up in the exact same position as if you had done a backdoor Roth for her? I don...
by Wagnerjb
Fri Jan 05, 2018 12:14 pm
Forum: Investing - Theory, News & General
Topic: Does all net income that doesn’t get paid out as a dividend add to a company’s equity?
Replies: 9
Views: 853

Re: Does all net income that doesn’t get paid out as a dividend add to a company’s equity?

I used to think that 100% of a company’s net income would either get paid out as dividends or add to a company’s retained earnings but I’ve realized that, in a lot of cases, some of a company’s net income just seems to disappear. Where does this additional net income go? Would paying off debt with ...
by Wagnerjb
Fri Jan 05, 2018 11:44 am
Forum: Investing - Theory, News & General
Topic: How Many Stocks Are Really Needed in Index Funds?
Replies: 52
Views: 3030

Re: How Many Stocks Are Really Needed in Index Funds?

But for the average investor, does it matter how closely you track it? How many stocks is good enough? I think after about 50 stocks you're going to track it pretty closely if you look at the top holdings: Tracking error is no big deal for investors who understand their investments and their strate...
by Wagnerjb
Fri Jan 05, 2018 11:31 am
Forum: Investing - Theory, News & General
Topic: How Many Stocks Are Really Needed in Index Funds?
Replies: 52
Views: 3030

Re: How Many Stocks Are Really Needed in Index Funds?

How many stocks are needed in an Index Fund to track Vanguard Total Stock Market Fund fairly closely? I would guess the top 50-100 stocks by market cap would closely replicate VTI. Many investors feel that fewer stocks is better , if you can choose a superior category (blue chips, dividend stocks, ...
by Wagnerjb
Thu Jan 04, 2018 9:18 pm
Forum: Investing - Theory, News & General
Topic: How Many Stocks Are Really Needed in Index Funds?
Replies: 52
Views: 3030

Re: How Many Stocks Are Really Needed in Index Funds?

The only scenario I would find this might be valuable at all is a high net worth person that wants a zero expense ratio. In a small cap fund, I somewhat understand the need for many stocks, but not in a large cap or total market fund. I used a similar strategy for about 15 years before I retired. I...
by Wagnerjb
Thu Jan 04, 2018 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking Advice To $$ Mess
Replies: 23
Views: 2421

Re: Seeking Advice To $$ Mess

Have your folks considered a reverse mortgage? I believe that would allow them to essentially spend the equity in their home. The flip side is that the value of the house won't be available as an inheritance. I have not looked into the details of a reverse mortgage, but it might be something to cons...
by Wagnerjb
Thu Jan 04, 2018 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Selling Stock within UTMA
Replies: 4
Views: 199

Re: Selling Stock within UTMA

The UTMA account is not a tax-deferred or tax-free account, so taxes will be due on any income generated in the account. The owner of the account - your son - will owe the taxes. If your son is a minor with no other income, he doesn't have to pay any income taxes if the UTMA income is an amount arou...
by Wagnerjb
Wed Jan 03, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Shares of UTMA Account
Replies: 26
Views: 948

Re: Selling Shares of UTMA Account

This year my 21 year old son will start selling $5500 of his UTMA Account and put the money into his Roth IRA. His account is at Vanguard. He is a full time student with part time job. Makes enough to cover the Roth IRA. So, he is taking advantage of the low income bracket and will not have to pay ...
by Wagnerjb
Mon Jan 01, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Feedback and Diversifying Vested RSUs
Replies: 3
Views: 307

Re: Portfolio Feedback and Diversifying Vested RSUs

Hi Chuckit, and welcome to the Bogleheads forum. I have some thoughts on the RSU issue to offer. I see the predicament you are in with those RSUs that are already vested. They have capital gains built up, and with you in the 33% tax bracket you will be paying a high price to diversify those. But you...
by Wagnerjb
Mon Jan 01, 2018 2:10 am
Forum: Personal Finance (Not Investing)
Topic: Did you get an Unexpected Year End Bonus because of the Tax Cut?
Replies: 44
Views: 3277

Re: Did you get an Unexpected Year End Bonus because of the Tax Cut?

munemaker wrote:
Mon Jan 01, 2018 1:15 am
It is wonderful that so many companies are giving the year end bonus or wage increases in as a result of the tax cut.

I am retired so no bonus for me, but I am happy for those who did receive a bonus.
+1
by Wagnerjb
Sat Dec 30, 2017 6:14 pm
Forum: Personal Consumer Issues
Topic: How can new DAF holders support Bogleheads/ Financial literacy
Replies: 10
Views: 935

Re: How can new DAF holders support Bogleheads/ Financial literacy

I also have a Fidelity DAF and have made donations to the Bogle Center in the past. If your employer offers matching donation funds, be sure to apply for them. That's an interesting point that I have been wondering about. Megacorp has a matching program, but I don't know if they will match contribu...
by Wagnerjb
Sat Dec 30, 2017 1:09 pm
Forum: Personal Consumer Issues
Topic: How can new DAF holders support Bogleheads/ Financial literacy
Replies: 10
Views: 935

Re: How can new DAF holders support Bogleheads/ Financial literacy

https://boglecenter.net/ Thanks. First donation ordered. I also have a Fidelity DAF and have made donations to the Bogle Center in the past. If your employer offers matching donation funds, be sure to apply for them. I got matching funds for my donations to the Bogle Center. :D Happy New Year.
by Wagnerjb
Thu Dec 28, 2017 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Plan (Fido Funds) Question
Replies: 2
Views: 276

Re: Deferred Compensation Plan (Fido Funds) Question

I know the NQ-DCP will be my riskiest retirement account, so does one put the riskiest, safest, or a blend of assets into it? I have used my company's NQDC plan in the past (I am now retired and drawing from the plan) and I have thought about the allocation issue. To me, it makes the most sense to ...
by Wagnerjb
Tue Dec 26, 2017 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Question regarding unvested megacorp stock shares
Replies: 4
Views: 313

Re: Question regarding unvested megacorp stock shares

Personally, I considered them in my AA even though they weren't vested. Just my opinion.
by Wagnerjb
Sun Dec 24, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Trade offs - AOT v. ACA v. new Child Tax Credit
Replies: 1
Views: 274

Re: Trade offs - AOT v. ACA v. new Child Tax Credit

I got an excellent private message from poster Flobes, who indicated that the ACA repayment penalties are capped at various levels ($300, $750, $1275) depending on your income level. Only if your income exceeds 400% of the poverty level is the repayment penalty unlimited. This great news suggests th...
by Wagnerjb
Sun Dec 24, 2017 11:07 am
Forum: Personal Consumer Issues
Topic: How much have you donated to John C Bogle Center for Financial Literacy?
Replies: 17
Views: 1760

Re: How much have you donated to John C Bogle Center for Financial Literacy?

Over the past three or four years, my donations to the Bogle Center have totaled $3,430. I have made direct donations to the Bogle Center from my Donor Advised Fund, and the figure includes matching funds from my employer.
by Wagnerjb
Sat Dec 23, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund (DAF) - Bunch Now - Easy (even easier than backdoor Roth)
Replies: 19
Views: 1437

Re: Donor Advised Fund (DAF) - Bunch Now - Easy (even easier than backdoor Roth)

And just a warning to folks to carefully consider if donating more this year offers enough benefit. If you're income is high enough, the Pease limits do peel back the benefit you get from deductions. AMT too. Aren't the Pease limits based on Adjusted Gross Income? If so, I don't see how higher dona...
by Wagnerjb
Sat Dec 23, 2017 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Trade offs - AOT v. ACA v. new Child Tax Credit
Replies: 1
Views: 274

Trade offs - AOT v. ACA v. new Child Tax Credit

Here is the situation: Son turned 26 during 2017 and is a full time student in college. For 2017 he signed up for heavily subsidized ACA medical coverage, based on my estimate of his income around $13k. The $13k comes from a summer job (~$5k), plus capital gains on gifted securities my wife and I ga...
by Wagnerjb
Sat Dec 23, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: 7.5% medical deduction for 2017 on billed amount or payed amount?
Replies: 14
Views: 591

Re: 7.5% medical deduction for 2017 on billed amount or payed amount?

I believe the key is when the expense was paid. Paying with a Credit Card is paying for the expense, it makes no difference when the Credit Card is paid. Therefore you could charge in 2017 a medical expense on a Credit Card and deduct that expense on your 2017 return and pay the credit card wheneve...
by Wagnerjb
Sat Dec 23, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: cost basis of inherited home sold after 18 months
Replies: 7
Views: 946

Re: cost basis of inherited home sold after 18 months

I was in a very similar situation. My siblings and I inherited a house in 2014 that was in my mother's trust. We had it appraised a month after death (D+1) for a number let's call 500. We put the house on the market around D+5 after some relatively minor renovations (around $12k worth) and the house...
by Wagnerjb
Fri Dec 22, 2017 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: [Tuition and Fees and Childcare Expenses deductions still available?]
Replies: 5
Views: 686

Re: [Tuition and Fees and Childcare Expenses deductions still available?]

From everything I can find online, the Tuition & Fees deduction expired after 2016....so it isn't available for 2017. I haven't found anything in the new tax bill that reinstates this deduction. Thus, I assume it is no longer available. I had hoped for my son to use it in 2017.

Best wishes.
by Wagnerjb
Fri Dec 22, 2017 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Prepay mortgage vs invest when itemizing in alternate years
Replies: 7
Views: 834

Re: Prepay mortgage vs invest when itemizing in alternate years

Hi Mark: will your mortgage interest be truly fully deductible in 2019? From what I can tell, for the entire mortgage interest payment to provide true tax savings, you have to have other itemized deductions of at least $24,000. Since taxes are capped at $10,000 that suggests that you need charitabl...
by Wagnerjb
Fri Dec 22, 2017 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Selling uncovered mutual fund shares by Specific ID
Replies: 15
Views: 797

Re: Selling uncovered mutual fund shares by Specific ID

Hi Mitchell: I sold some shares of stock using specific ID at Vanguard in 2007. I still have the remaining shares of that stock. Note that Vanguard's new online "cost basis" is wrong today. While I followed the instructions on getting my specific ID letter acknowledged by Vanguard, they apparently d...
by Wagnerjb
Fri Dec 22, 2017 11:18 am
Forum: Personal Finance (Not Investing)
Topic: Prepay mortgage vs invest when itemizing in alternate years
Replies: 7
Views: 834

Re: Prepay mortgage vs invest when itemizing in alternate years

Hi Mark: will your mortgage interest be truly fully deductible in 2019? From what I can tell, for the entire mortgage interest payment to provide true tax savings, you have to have other itemized deductions of at least $24,000. Since taxes are capped at $10,000 that suggests that you need charitable...
by Wagnerjb
Mon Dec 18, 2017 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund if your tax circumstances will change in the future
Replies: 75
Views: 4954

Re: Donor Advised Fund if your tax circumstances will change in the future

Keep in mind that you can't claim more than 30% of AGI as a deduction when donating shares. So if you were planning to megabunch 10 years x 5% AGI at once, you can only take 30%. The remaining 20% carries forward to the next tax year. (The carryover clock expires after 5 years.) See Pub. 526 for de...
by Wagnerjb
Sun Dec 17, 2017 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund if your tax circumstances will change in the future
Replies: 75
Views: 4954

Re: Donor Advised Fund if your tax circumstances will change in the future

Keep in mind that you can't claim more than 30% of AGI as a deduction when donating shares. So if you were planning to megabunch 10 years x 5% AGI at once, you can only take 30%. The remaining 20% carries forward to the next tax year. (The carryover clock expires after 5 years.) See Pub. 526 for de...
by Wagnerjb
Sun Dec 17, 2017 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund if your tax circumstances will change in the future
Replies: 75
Views: 4954

Re: Donor Advised Fund if your tax circumstances will change in the future

The usual advice for Donor Advised Fund (DAF) use is to put in the yearly (or perhaps two years) donation amount and disperse relatively soon to minimize the relatively high fees. If one thinks that future years will not allow deducting charitable contributions (for whatever reason) would it make s...
by Wagnerjb
Sat Dec 16, 2017 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Are you prepaying real-estate taxes this year?
Replies: 16
Views: 2198

Re: Are you prepaying real-estate taxes this year?

I asked my accountant about this and he said it wouldn't help because we are subject to AMT. Did anyone else get this response? If you are already subject to AMT, then a higher deduction for property taxes won't impact the bottom line tax bill. In my case, I am accelerating two deductions because I...
by Wagnerjb
Wed Dec 13, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: Accelerating deductions into 2017
Replies: 5
Views: 736

Re: Accelerating deductions into 2017

3) Charitable contributions - Here's one where you can be really creative. Its very easy to give money away this year that you had planned to give away next year or even the year after. What is even better here is a donor-advised fund, since you can give away a lot of years worth of donations witho...
by Wagnerjb
Wed Dec 13, 2017 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale and IRAs
Replies: 3
Views: 208

Re: Wash Sale and IRAs

If you sell "at a loss" in your IRA you don't have a deductible loss for tax purposes. Therefore you cannot have a wash sale.

Since you don't have a wash sale, the holding period section doesn't apply to your situation.

Best wishes.
by Wagnerjb
Tue Dec 12, 2017 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Hedging RSUs
Replies: 6
Views: 477

Re: Hedging RSUs

She has already left the former company and the shares have still not vested? Are you sure? I would be surprised to see that.