Search found 1676 matches

by RustyShackleford
Fri Feb 09, 2024 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: frustration moving money between financial institutions
Replies: 8
Views: 1195

Re: money disappearing in-between institutions

Stinky wrote: Fri Feb 09, 2024 1:50 pm Sounds like you had a three year MYGA from American Equity.
Correct.
In hindsight, probably your “original mistake” was not contacting BOTH Schwab and American Equity to facilitate the transfer. The process might have moved faster if you had.
Actually, I did. First AE, who said you have to do it thru Schwab. Then after Schwab sent the paperwork (2 weeks after I asked them to), and nothing happened, Schwab told me that AE needed to hear from me.
BTW - probably the leading complaint in the Forum MYGA mega-thread is that many insurance companies use snail mail for paying out policy proceeds.
Yeah, it's ridiculous. They didn't even send it registered snail mail.
by RustyShackleford
Fri Feb 09, 2024 11:58 am
Forum: Personal Finance (Not Investing)
Topic: frustration moving money between financial institutions
Replies: 8
Views: 1195

frustration moving money between financial institutions

Three years ago, in an effort to "chase yield", I moved a 6-figure sum of cash from my Roth IRA to a fixed annuity at an insurance company called American Equity (AE), brokered by an outfit called Blueprint Income. A fixed annuity is a bit like a CD, except not FDIC insured. After three years, my money had grown with 3 years' worth of compounded interest. On Dec 21, the guaranteed rate period ended and I was eligible to withdraw the money with no surrender charges. So I initiated transfer back to my Roth at Schwab. I first filed "transfer account" paperwork with Schwab; they weren't able to execute it till about two weeks after Dec 21. Then I was told that American Equity said I need to contact them to authorize the tran...
by RustyShackleford
Mon Feb 05, 2024 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: pre-tax medical spending for retirees ?
Replies: 2
Views: 321

pre-tax medical spending for retirees ?

Is there any path for retirees (persons without a salary, taking Social Security or not) to pay medical expenses with pre-tax money ? IOW, analogous to a flexible spending account. I'm gonna guess not, since for people taking Social Security, not even Medicare premiums are pre-tax (in the sense that they aren't deducted from the Social Security potentially-taxable amount). But I thought it couldn't hurt to ask.
by RustyShackleford
Fri Feb 02, 2024 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Morningstar forums
Replies: 9
Views: 1610

Morningstar forums

Has Morningstar done away with their discussion groups ? I can't seem to find them from the homepage.
by RustyShackleford
Tue Jan 23, 2024 7:16 pm
Forum: Personal Investments
Topic: buying callable bonds ?
Replies: 6
Views: 697

buying callable bonds ?

Given that one can purchase fixed-income (bonds and CDs) of several-years' duration with YTMs nearly equal to good money-market funds such as Vanguard's VMMXX, coupled with the fact that interest rates seem very unlikely to increase and pretty likely to decrease over that time frame ... it seems like a heads-up move to invest in some of these (with money one is certain to need over that time-frame).

But, the ones with the highest yields tend to be "callable", which I believe means that the issuer can elect to simply pay off the principal at a time of their choosing. So does it defeat the premise of my rationale to invest in callable bonds ? If rates do indeed fall, is it a near-given that the issuer will exercise their call ?
by RustyShackleford
Wed Dec 06, 2023 4:25 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3707

Re: lock in 5.35% for 3 years on fixed equity ?

Thanks for all the advice, folks.

I've decided to bring the money (once the annuity matures, or reaches the end of its no-surrender charge guarantee period) back to my main Roth (at major brokerage). I'll decide what to do then. Leaning towards a CD at Founders FCU (extra thanks for that tip). Hopefully interest rates won't have dropped too dramatically by the time this all comes to pass (the maturity date is 12/22).
by RustyShackleford
Tue Dec 05, 2023 11:19 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3707

Re: lock in 5.35% for 3 years on fixed equity ?

z3r0c00l wrote: Tue Dec 05, 2023 9:19 pm That is a serious rub, since these higher rates are going to be from fringe insurance companies vulnerable to collapse at the next accounting scandal. Maybe there are more rubs. What are the fees? Any penalty for early withdrawal?
Not so sure they're "fringe" companies. They do have ratings - I would never go below A-something. And they are protected by state-level guarantee funds.

No fees. Definitely early-withdrawal penalties.
by RustyShackleford
Tue Dec 05, 2023 9:14 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3707

Re: lock in 5.35% for 3 years on fixed equity ?

Dufus wrote: Tue Dec 05, 2023 8:54 pm Depending on where you are in NC there may be a better CD rate. Founders in Charlotte has a 5.61 APY on 3 years
Impressive, but you need to be an NC resident ?
by RustyShackleford
Tue Dec 05, 2023 9:14 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3707

Re: lock in 5.35% for 3 years on fixed equity ?

cheese_breath wrote: Tue Dec 05, 2023 9:03 pm OP, are you over 59/2 tears old?
Well over, but good point. But the money retained its Roth status when it went from my main Roth (at major brokerage) to American Equity and will retain it when I bring it back.
by RustyShackleford
Tue Dec 05, 2023 4:46 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3707

Re: lock in 5.35% for 3 years on fixed equity ?

Rex66 wrote: Tue Dec 05, 2023 4:08 pm Why not 1035 into a 6
Not sure I wanna go that long, but searching, I can get that same 3-year rate with an A-plus rated insurer.
by RustyShackleford
Tue Dec 05, 2023 4:03 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3707

Re: lock in 5.35% for 3 years on fixed equity ?

cheese_breath wrote: Tue Dec 05, 2023 3:53 pm No personal experience, but I'm aware several persons on this forum have MYGAs from Blueprint. Is yours a MYGA?
Right now, looks like 3-year TIPS have YTMs of 2.2-2.3%. So inflation would have to stay consistently 3% to match.

Also, inflation-protected is about 45% of my fixed-income, so don't really feature adding to that.
by RustyShackleford
Tue Dec 05, 2023 3:58 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3707

Re: lock in 5.35% for 3 years on fixed equity ?

cheese_breath wrote: Tue Dec 05, 2023 3:53 pm No personal experience, but I'm aware several persons on this forum have MYGAs from Blueprint. Is yours a MYGA?
Multi-year guaranteed annuity ? I presume so. It guaranteed me 3.2% for 3 years, non-callable.
by RustyShackleford
Tue Dec 05, 2023 3:45 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3707

lock in 5.35% for 3 years on fixed equity ?

Awhile back, chasing yield, I bought a fixed annuity through an outfit called Blueprint Income. It guaranteed 3.2% for 3 years and the guarantee period just ended. They are offering the option of renewal for 3 years at 5.35%. This seems like a pretty good deal. Three-year CDs and Treasuries seems to now be in the high 4% range; and it seems pretty unlikely rates will go up anymore, and probably go down.** The only rub is that these are not FDIC insured. They are insured by a state insurance guarantee program. The rating of the company, American Equity, is currently A-minus. This is Roth money, and the amount is about 7% of my portfolio. It's money I wish to keep in the fixed-income domain. Thoughts ? ** American Equity quotes the "fede...
by RustyShackleford
Thu Oct 05, 2023 10:33 am
Forum: Personal Investments
Topic: TIAA Traditional: SECURE 2.0 makes annuitization even MORE attractive
Replies: 38
Views: 7173

Re: TIAA Traditional: SECURE 2.0 makes annuitization even MORE attractive

Dregob wrote: Tue Sep 05, 2023 10:04 am As the kids say TLDR. Too long did not read.
Edit it to the essential point(s) you are trying to make.
Maybe a basic question:

Thanks to SECURE 2.0, does that mean my payout from TIAA annutiizatuon (already done) may cover my RMD obligation from my un-annuitized holdings in eligible accounts ?
by RustyShackleford
Thu Aug 31, 2023 1:33 pm
Forum: Personal Consumer Issues
Topic: Curious Amazon Fraud?
Replies: 26
Views: 4241

Re: Curious Amazon Fraud?

I doubt this was fraud, but it was certainly curious. I got an email from Amazon acknowledging a return (of one of our subscribe&save shipments). Thing is, we never returned it, nor did we ask for a return. But they still credited the money back to our credit-card. Never look a gift horse in the mouth, I suppose.
by RustyShackleford
Sun Aug 13, 2023 11:39 am
Forum: Personal Consumer Issues
Topic: Daikin minisplit issues
Replies: 27
Views: 3510

Re: Daikin minisplit issues

I know it doesn’t help you now but I’ve had zero issues with Fujitsu mini splits. The rep did say they are susceptible to voltage fluctuations and put an extra surge protector on the outside unit where everything gets fed power from. We’ve lost a couple TVs to voltage issues but never the mini split. I've installed two Fujitsu minisplits, and I also have had no issues. My understanding is that Fujitsu and Mitsubishi are superior to all other brands and I believe it. Not only their reliability, but their performance: one of the Fujitsu units kept our mountain place cozy down to 0 degrees outside temperature. The company are jerks though. The wifi adapter (nice, because it allows pre-heating the mountain place when we go up there **) didn't ...
by RustyShackleford
Wed Aug 09, 2023 4:59 pm
Forum: Personal Consumer Issues
Topic: Battery Backup for Refrigerator?
Replies: 62
Views: 6447

Re: Battery Backup for Refrigerator?

I rigged up our Nissan Leaf EV to be able to plug in a 1000watt inverter. Can easily power the refrigerator and some lights (LED) and the modem/router. Pretty nice. Only issue is when the fridge goes into auto-defrost - makes the inverter unhappy; I need to figure out how to disable it.
by RustyShackleford
Mon Jul 31, 2023 10:30 pm
Forum: Investing - Theory, News & General
Topic: Schwab vs. Fidelity vs. Vanguard
Replies: 111
Views: 16742

Re: Schwab vs. Fidelity vs. Vanguard

I've found both Schwab's customer service and their website to be superior to Vanguard's. I have no experience with Fideltiy.
by RustyShackleford
Sat Jul 29, 2023 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: is it legal for merchants to not accept cash ?
Replies: 97
Views: 10515

is it legal for merchants to not accept cash ?

In my area, there are several merchants who will only accept credit-card payments - or, at least, they will not accept cash. Is this legal ? Isn't cash "legal tender", which payees are obligated to honor ?
by RustyShackleford
Thu Jul 27, 2023 6:14 pm
Forum: Personal Consumer Issues
Topic: Questions about installing a new EV charger in my garage
Replies: 109
Views: 11856

Re: Questions about installing a new EV charger in my garage

You are not installing a charger , you are installing an EVSE . Right, all the EVSE (that we're discussing here) is, is a glorified GFCI, that also does some "handshaking" with the car, so that it doesn't become energized until it knows its plugged into the car. It then provides the car with 220-240 vac, of whatever amperage, which powers a charger IN the car. The Level 3 charger, also known as a fast-DC charger (such as the Tesla Super-Charger) IS actually a charger. IIRC, the DC current goes directly into the battery. Which brings up another issue on the hard-wired charger versus 240 vac outlet decision. Do you really want to be standing in the rain plugging a cord into a 240vac outlet ? Not an issue if you have a garage. Not a...
by RustyShackleford
Thu Jul 27, 2023 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Tesla suppressed driving range complaints
Replies: 174
Views: 14978

Re: Tesla suppressed driving range complaints

hachiko wrote: Thu Jul 27, 2023 4:29 pm False advertising doesn't change the cars themselves.
Yes. A company can behave like jerks and still make an excellent product. Apple is another good example.
by RustyShackleford
Thu Jul 27, 2023 3:15 pm
Forum: Personal Consumer Issues
Topic: Questions about installing a new EV charger in my garage
Replies: 109
Views: 11856

Re: Questions about installing a new EV charger in my garage

I installed a Clipper Creek unit at our main home.

For vacation house, I got this one: https://shop.emporiaenergy.com/collections/ev-chargers. The big advantage of it (besides the internet connectivity features, which I may or may not use) is that you can set the maximum charging current to virtually any value between 6 and 48 amps. Right now I'm only going to be able to support 20 amps (10 awg wiring on a 25-amp breaker), but for reasons I won't get into here, there's a good chance that I may be able to provide it with more juice in the future, so I can just change its settings (rather than have to purchase a new charger).
by RustyShackleford
Thu Jul 27, 2023 3:09 pm
Forum: Personal Consumer Issues
Topic: Questions about installing a new EV charger in my garage
Replies: 109
Views: 11856

Re: Questions about installing a new EV charger in my garage

mervinj7 wrote: Mon Dec 05, 2022 1:43 am Yes, I think it's a concern as well. I leave the EVSE plugged in.
You can see youtube videos where the outlets melted. Can be somewhat avoided by not buying the cheapest possible outlet.
by RustyShackleford
Thu Jul 27, 2023 3:08 pm
Forum: Personal Consumer Issues
Topic: Questions about installing a new EV charger in my garage
Replies: 109
Views: 11856

Re: Questions about installing a new EV charger in my garage

Fat Tails wrote: Mon Dec 05, 2022 3:06 am You cant plug the J-1772 directly into a Tesla. However, there is an adapter that will let you plug in a J-1772 cable to charge a Tesla,
It comes free with the Tesla (even after they stopped supplying the mobile charging cord).
by RustyShackleford
Thu Jul 27, 2023 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Tesla suppressed driving range complaints
Replies: 174
Views: 14978

Re: Tesla suppressed driving range complaints

stoptothink wrote: Thu Jul 27, 2023 12:50 pm With the public charging infrastructure, Tesla kind of has the industry by the short and curlies.
Except, with all the money in the infrastructure bill ear-marked for Level 3 charging stations, which must be CCS, that could change. Also, the announcement of a consortium of major auto-makers to start their own network, supporting Tesla's system and CCS: https://www.cbsnews.com/news/electric-v ... tis-tesla/
by RustyShackleford
Wed Jul 26, 2023 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: questions about QCDs
Replies: 10
Views: 1247

Re: questions about QCDs

Alan S. wrote: Wed Jul 26, 2023 3:51 pm [This means if you issue several smaller QCD checks instead of fewer larger ones, you will have more follow up work to make sure you have adequate documentation. This applies whether you issue the checks or the custodian does.
It sure would be nice if you could make QCDs to an actual DAF. I can't understand why not - I can't figure out what kind of abuse might occur.
by RustyShackleford
Wed Jul 26, 2023 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: optimizing Roth conversion when taking SS
Replies: 6
Views: 1080

Re: optimizing Roth conversion when taking SS

sidneyinplanning wrote: Sat Apr 01, 2023 10:17 am
Yes, the calculation of how much SS taxable greatly affects the amount of extra tax paid due to Roth conversion or pre RMD distribution. You are right without SS, 12% bracket is 12% till you move to the next bracket. Once social security is invovled, that bump can be from 12% right to 22% (or even much higher) depending on how much the withdrawal is and if one SS or 2 SS is involved. Need to run a tax calcualtor with SS many times to see when is the threshold.
Thanks, but moot now. I did take spousal benefits for two years, and then my own benefit at age 70. I'm content.
by RustyShackleford
Wed Jul 26, 2023 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: questions about QCDs
Replies: 10
Views: 1247

questions about QCDs

Being unable to take a tax deduction for my charitable contributions (due to the increase in the standard deduction a few years ago), I started making Traditional IRA contributions, with the plan of using the TIRA to make QCDs (qualified charitable distributions). (I'd previously emptied my TIRA, by converting all the funds to my Roth and/or rolling them over into a TIAA-CREF plan from which distributions would enjoy state-tax free status). I plan to use the TIRA somewhat like a donor-advised fund (DAF), making QCDs ever year or so. I have a couple of questions on this. First, my brokerage issued me checks for the TIRA. Is it ok to use these to make the QCDs ? (Perhaps a question for the brokerage, but it might be helpful to know if other p...
by RustyShackleford
Sun Feb 05, 2023 2:35 pm
Forum: Personal Investments
Topic: Vanguard vs Schwab
Replies: 88
Views: 13032

Re: Vanguard vs Schwab

Understanding that this thread is more about the companies' investment offerings, I'd just add that Schwab's website is FAR superior. I'd go so far as to assert that it's the best website I've ever seen at any financial type company.
by RustyShackleford
Sat Feb 04, 2023 10:55 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

Thanks for the explanations. I changed the thread title.
by RustyShackleford
Sat Feb 04, 2023 5:03 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

Hyperchicken wrote: Sat Feb 04, 2023 4:35 pmIt's not that someone does not know. It's that DRIP does not mean what you think it means. DRIP is not the same as having automatic dividend reinvestment turned on.
Whoa, can you explain please ?
by RustyShackleford
Sat Feb 04, 2023 4:13 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

Edited OP to clarify a little. Apologies for confusion.
by RustyShackleford
Fri Feb 03, 2023 9:26 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

I would not in a taxable brokerage account because I might choose to do something different with them rather than reinvest in the same thing. Good point. Maybe even use it as "play money", indulge that urge, we mostly suppress as Bogleheads, to follow hunches. Honestly, the issue of cost basis still haunts me. From a traumatic experience I had in the twenty-aughts, when I decided to abandon (TLH'ing during the Great Recession) the actively-managed funds an "advisor" had me in, and had to compute the cost basis by hand, entering numbers from years of statements into Excel. I understand the IRS requires brokerage to keep track of all that for me today, but still ... Nobody here is telling me it's dumb to not DRIP, so I th...
by RustyShackleford
Fri Feb 03, 2023 5:51 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

ResearchMed wrote: Fri Feb 03, 2023 5:43 pm But this is for living expenses.
Most of us would probably suggest that current/near-future living expenses be in cash/cash-equivalent holdings, not subject to the vagaries of "the market"
Sorry, but no, I said in first paragraph of OP that I no longer need portfolio withdrawals for living expenses, which is why I'm contemplating DRIP'age.
by RustyShackleford
Fri Feb 03, 2023 5:32 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

dcdowden wrote: Fri Feb 03, 2023 5:07 pm I prefer to accumulate the distributions and make a conscious decision about how to reinvest or withdraw.
Yeah, that's kinda my inclination too. A lot of my asking here is to see if anyone thinks it's a mistake not to DRIP.
by RustyShackleford
Fri Feb 03, 2023 5:31 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

exodusNH wrote: Fri Feb 03, 2023 4:16 pm
RustyShackleford wrote: Fri Feb 03, 2023 4:14 pm
diy60 wrote: Fri Feb 03, 2023 4:06 pm Are you simply asking if you should turn on automatic reinvesting of dividends and if there are any downsides?
Yes, of dividends and of capital-gains distributions (which these types of funds don't tend to have).
What are the pros and cons ?
To be clear, are you referring to reinvesting ETF or mutual fund dividends back into the funds or are you holding individual stocks.
Low-cost Vanguard index funds (VTI, VBR, VEU); I also hold VSS in a Roth. These are my equity holdings.
by RustyShackleford
Fri Feb 03, 2023 4:14 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

diy60 wrote: Fri Feb 03, 2023 4:06 pm Are you simply asking if you should turn on automatic reinvesting of dividends and if there are any downsides?
Yes, of dividends and of capital-gains distributions (which these types of funds don't tend to have).
What are the pros and cons ?
by RustyShackleford
Fri Feb 03, 2023 3:58 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

prd1982 wrote: Fri Feb 03, 2023 3:51 pm Are there any costs to be in the DRiP program?
I don't believe so.
by RustyShackleford
Fri Feb 03, 2023 3:57 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

Re: to DRIP or not to DRIP ?

ResearchMed wrote: Fri Feb 03, 2023 3:51 pm If there is *any* chance that you might want to take a tax-deductible loss in that taxable account, then be careful about the automated re-investment in the same holding (fund or stock) within 30 days (before or after) any selling at a loss.
Oh well, now that's a good point. Don't believe that will be a problem for me though, because we're talking about3 of Vanguard's low-cost index funds, and they are tremendously appreciated right now. Don't really see TLH with them in my future. But I'll keep it in mind.
by RustyShackleford
Fri Feb 03, 2023 3:33 pm
Forum: Investing - Theory, News & General
Topic: VTSAX vs VTI
Replies: 24
Views: 5937

Re: VTSAX vs VTI

One thing that I found to be a relatively minor unpleasant surprise was that apparently you can't specify the "average" cost-basis method with the ETFs.

This is actually in contradiction to something I read before:

https://investor.vanguard.com/investor- ... %2C%202011.

But both at Vanguard, where I did the conversion, and at the major brokerage to which I transferred my account (in at attempt to simplify my portfolio ever so slightly), I was told it is not an option.
by RustyShackleford
Fri Feb 03, 2023 3:29 pm
Forum: Investing - Theory, News & General
Topic: VTSAX vs VTI
Replies: 24
Views: 5937

Re: VTSAX vs VTI

OP, you might also find this thread to be instructive: viewtopic.php?t=395917
by RustyShackleford
Fri Feb 03, 2023 3:25 pm
Forum: Personal Investments
Topic: to reinvest mutual fund and ETF distributions, or not ?
Replies: 29
Views: 2893

to reinvest mutual fund and ETF distributions, or not ?

Having started receiving Social Security benefits and having started a lifetime annuity from my TIAA Traditional accumulation, I'm in the enviable position of NOT having to pull cash from my remaining (un-annuitized) portfolio for day-to-day expenses. Heretofore, I've DRIP'd my holdings in tax-advantaged and tax-qualified accounts (Roth IRA and Traditional IRA) - but NOT in my taxable account, mainly so I could use the dividends towards my spending withdrawals - which spending withdrawals I no longer require except for unusual expenses. So the question now is, should I DRIP the positions in my taxable account, or not ? These are low-cost Vanguard index fund ETF shares (VTI, VEU, VBR). I'd appreciate advice pro and con. *** In case anyone do...
by RustyShackleford
Fri Feb 03, 2023 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Citi including "bank promotions" on 1099-INT
Replies: 51
Views: 4804

Re: Citi including "bank promotions" on 1099-INT

Yeah, minor annoyance at having to pay tax I didn't expect to pay, but the major annoyance was that the issuer of the 1099-INT was unable to explain the extra $392 of "interest" to me.

Oh, and I have no regrets about how I responded either with Citi or here. [An unnecessary comment was removed- moderator ClaycordJCA.]
by RustyShackleford
Fri Feb 03, 2023 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Citi including "bank promotions" on 1099-INT
Replies: 51
Views: 4804

Re: Citi including "bank promotions" on 1099-INT

Here's an article that discusses this at length:

https://thepointsguy.com/2012/01/paying ... p-bonuses/

So while it seems clear that the IRS doesn't consider credit-card signup bonuses to be valued as interest income, they seem to waffle on the kind of bonus I received here (from opening the savings account). Interestingly, this article talks about $0.025/mile valuation, whereas mine appeared to be valued at $0.0098/mile.
by RustyShackleford
Fri Feb 03, 2023 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Citi including "bank promotions" on 1099-INT
Replies: 51
Views: 4804

Re: Citi including "bank promotions" on 1099-INT

H-Town wrote: Fri Feb 03, 2023 1:52 pm You will need to pay taxes on the frequent-flyer miles bonus from bank account. Citi assigns a value for each mile for what it's worth last year. It is tax evasion if you do not report the value of those frequent miles.
What is your basis for these unequivocal assertions ?
The responses from this thread is restrained from what it could be.
That's absurd. I related an experience and asked a simple question. All this hostility, and essentially accusing me of the crime of tax evasion, is uncalled for. I believe in paying my taxes.
by RustyShackleford
Fri Feb 03, 2023 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Citi including "bank promotions" on 1099-INT
Replies: 51
Views: 4804

Re: Citi including "bank promotions" on 1099-INT

Nate79 wrote: Fri Feb 03, 2023 12:57 am Not sure why you had infuriating calls with Citi. You didn't do your homework. Even a simple Google search would have given you the answer.
Uh, I got a 1099 I didn't understand. There was a phone number on it "if you have any questions". They didn't answer my questions until I pushed really hard.

Really aggressive tone to most of these responses. You DO understand that the promotion I received was frequent-flyer miles, not cash, right ?

It remains to be seen if I'll get a "corrected" 1099. I think this may be a "squeaky wheel gets the grease" type situation.
by RustyShackleford
Fri Feb 03, 2023 12:20 am
Forum: Personal Finance (Not Investing)
Topic: Citi including "bank promotions" on 1099-INT
Replies: 51
Views: 4804

Citi including "bank promotions" on 1099-INT

In 2021 I opened a savings account at Citibank, in order to receive a bunch of American Airlines miles. I closed the account in 2022 and withdrew my money. I just received a 1099-INT, where I expected to see $30 or so of interest. Instead it was more than $400. On the back side, this was itemized into the expected $30+ plus $392 for "bank promotions". After an infuriating bunch of phone calls, where I was told things like "you need to talk to your tax accountant or the IRS" I demanded to talk to a supervisor. Said supervisor confirmed my suspicion that they were assigning a value to the frequent-flyer miles (40,000 of them). He said it was an error and that I would receive a corrected 1099-INT. It remains to be seen if t...
by RustyShackleford
Thu Jan 26, 2023 1:26 pm
Forum: Personal Investments
Topic: converting Vanguard Admiral shares to ETF shares
Replies: 13
Views: 1394

Re: converting Vanguard Admiral shares to ETF shares

One unfortunate thing, apparently you can't specify the "average" cost-basis method with the ETFs. I checked with both VBS and "major brokerage", and they said it was not an option.
by RustyShackleford
Wed Jan 25, 2023 11:35 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241471

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

poker27 wrote: Wed Jan 25, 2023 8:32 pm
RustyShackleford wrote: Wed Jan 25, 2023 5:08 pm So if I buy an i-bond before the end of January, I get the current 6.89% rate until July, no matter what. Then, suppose the rate goes to 0.4% in July, and I surrender the thing as early as I can, in January 2024. I've still earned about 3.6% for the year, only about a 1% below regular 1-year Treasuries. But that's a worst-case scenario.

Do I have this right ?
Not sure if you computed the penalty in your calculation, but you would lose the last 3 months of interest as well (.4% in your example)
I didn't think about that, but it'd be about 0.1% (0.4% over 3 months), so not much difference.
by RustyShackleford
Wed Jan 25, 2023 5:08 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241471

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

So if I buy an i-bond before the end of January, I get the current 6.89% rate until July, no matter what. Then, suppose the rate goes to 0.4% in July, and I surrender the thing as early as I can, in January 2024. I've still earned about 3.6% for the year, only about a 1% below regular 1-year Treasuries. But that's a worst-case scenario.

Do I have this right ?