Search found 124 matches

by PoeticalDeportment
Mon Nov 09, 2020 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Best taxable account for donating to large charity
Replies: 11
Views: 703

Re: Best taxable account for donating to large charity

nycbudgetq wrote: Mon Nov 09, 2020 9:20 pm Found it quite easy at Schwab, fill out a form, upload it. Generally handled next day.
That sounds about as good as I would dare hope for.
by PoeticalDeportment
Mon Nov 09, 2020 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Best taxable account for donating to large charity
Replies: 11
Views: 703

Re: Best taxable account for donating to large charity

Does the charity have a brokerage account and do you know the particulars of their account? We have high appreciated shares in an account at TDA and we can transfer them to our church, which also has an account at TDA with relative ease compared to your story. It takes about a week to transfer which is a lot longer than the 2 days they tell me it should take, but at least it gets done. We contribute monthly and on special occasions so there might be as many as 18 transfers/year and it goes pretty smoothly. I have a retirement account with TDA and I like the platform... but why would they tell you 2 days, and then the transaction takes a week to go through? This is the kind of information I am looking for though - thanks. It sounds like the...
by PoeticalDeportment
Mon Nov 09, 2020 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Best taxable account for donating to large charity
Replies: 11
Views: 703

Best taxable account for donating to large charity

We use our taxable account very efficiently: we actively tax-loss harvest and we donate appreciated shares to charity when we wish to do so (at least annually). I have never understood all of these people who complain about Vanguard customer service... until I tried to make one of our usual charitable donations in October. We have donated to this charity in the past using appreciated shares, always without a hitch (although it seems to require more effort to do this at Vanguard than it used to at Scottrade many years ago). Well, long story short: the shares have never left our account (its been more than 3 weeks now), my messages to Vanguard through the website have been met with this: Dear ######: Our research team is still looking into th...
by PoeticalDeportment
Tue Sep 10, 2019 10:52 am
Forum: Investing - Theory, News & General
Topic: [Leveraged ETFs vs. Bogleheads Investment Philosophy]
Replies: 113
Views: 8635

Re: [Leveraged ETFs vs. Bogleheads Investment Philosophy]

HEDGEFUNDIE wrote: Sun Sep 08, 2019 1:14 pm All this talk about how bad leverage is is making me antsy.

I’ve been back and forth about what to rebalance my EDV gains into.
The only question about rebalancing is when to do it. (Stick to your predetermined asset allocation)

If you are wondering which assets to buy and which to sell - that is called something else.
by PoeticalDeportment
Mon Jan 28, 2019 11:17 am
Forum: Personal Investments
Topic: “S&P 500 Index” versus "total stock market” in 401k
Replies: 11
Views: 2337

Re: “S&P 500 Index” versus "total stock market” in 401k

Since you have TSM in taxable, use the 500 fund in 401k. This will avoid wash sales created by auto-reinvested dividends in the 401k when you TLH in the taxable account.
by PoeticalDeportment
Tue Oct 30, 2018 1:43 pm
Forum: Personal Consumer Issues
Topic: Ancestry DNA changed my background
Replies: 32
Views: 5101

Re: Ancestry DNA changed my background

When comparing your known genealogy to the DNA test results one thing to keep in mind is that you only have 46 chromosomes so as you go back generations you only have a genetic connection to at most 46 ancestors in each generation. (This is of course a bit oversimplified) If you go back 8 generations, which could be about 200 years, then you would have 256 ancestors in your family tree in that generation but you would only have a genetic connection with at most 46 of them. That is only about 18% of that generation. That makes it easy for the random 18% that you got to be much different than what you would expect to see based on your family tree. Lookup “genetic recombination.” You have DNA from all 256 - insofar as correct paternity is ass...
by PoeticalDeportment
Tue Oct 09, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: .
Replies: 17
Views: 3065

Re: Fidelity Visa Signature: Car Rental, No Collision/Comprehensive

We do not carry collision or comprehensive insurance. Some years ago, when we returned a rental car, the rental company found damage to a bumper that I am sure we did not cause. Nevertheless, the rental company insisted we were liable and made a claim against our liability insurance, which paid. Our insurance company explained that they cover rental car damage claims under liability coverage, even without collision/comprehensive coverage. Possibly that was specific to our state (Texas) or insurer (Progressive), but you may want to check with your insurer before assuming that you have no coverage for this type of claim. I had a rental company try that with me. I produced my video walk-around of the vehicle from before taking possession - an...
by PoeticalDeportment
Sun Sep 02, 2018 9:40 pm
Forum: Personal Consumer Issues
Topic: bench vise recommendation
Replies: 20
Views: 2042

Re: bench vise recommendation

gmc4h232 wrote: Sun Sep 02, 2018 7:30 pm Please don’t buy HF or other Chinese junk vise. Craftsman likely falls into this category these days.

Buy you a nice vintage piece of American iron.
Here is a short list of quality older American vises:
Wilton
Prentiss
Columbian
Yost
Reed
Parker
The Wilton C2 (made in USA) is my preference. I want to find a good deal on a used one, but the current price I have available to me is not really that alluring. The new price is categorically more than I am willing to pay. I may end up getting an inexpensive one for my current needs and searching the classifieds (probably for a couple of years) for the one I really want at a better price.
by PoeticalDeportment
Sun Sep 02, 2018 5:06 pm
Forum: Personal Consumer Issues
Topic: bench vise recommendation
Replies: 20
Views: 2042

bench vise recommendation

I have an indoor workbench (no welding), for which I would like to buy a bench vise. I have no background in anything that would help me be an informed purchaser or user of such an item. I don't really run in circles of people that know about this either. However, I thought "surely there is someone out there in Boglehead land who could offer some good advice." I am open to suggestions, but I am currently considering one of the following options: 1. Yost FSV-5 (forged steal, made in Taiwan) This would have all of the capability I would ever need. This is smaller than the other two options by quite a bit. Price new $184 on Amazon. 2. 6 inch Paramo Bench Vise (Made in England) Excellent condition. I think this one is cool (somewhat a...
by PoeticalDeportment
Sat Nov 04, 2017 12:05 am
Forum: Personal Investments
Topic: Contribute to tax deferred vs taxable accounts
Replies: 15
Views: 1819

Re: please advise - ?create more tax deferred space?

My concern is if I would be over saving in pretax area if I do this and have to pay lot of taxes in retirement . Expenses wise , yearly administration fees are About 2k and set up fee one time about 4K. I will have to contribute to employees about upto 20k if I include match and profit sharing contributions The above will be in addition to the expense ratio fees of funds in plan. 1. I wouldn't be concerned about over saving if I was already in the 39.6% bracket unless I thought all of those dollars were going to be taxed in the highest bracket in the future AND I thought the highest bracket in the future would be more than 39.6%. Does your, or your wife's 401k's allow in plan distributions (to IRAs, which could be converted to Roth) or Rot...
by PoeticalDeportment
Sun Jul 09, 2017 10:17 pm
Forum: Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 156
Views: 40381

Re: $400,000 Roth Conversions Between Ages 66-69?

Well, I am the OP. I was still working in 2016, so I did no Roth conversions in 2016. My original post was a look-ahead to 2017. This spring I did hire a financial advisor to help me brainstorm this decision. He was much more conservative than many of the BHs on this post - his recommendation was to convert around $75,000 this year. I haven't converted yet this year, so I'm still thinking about this. Go figure. Small Law Survivor What did the financial advisor charge for that recommendation? What were their assumptions? I think you should call James Lange. I would be interested to hear 1) how much he charges 2) what his recommendation is after "running the numbers". I am still concerned that the variable annuity will play a large...
by PoeticalDeportment
Sun Jun 11, 2017 8:50 pm
Forum: Investing - Theory, News & General
Topic: Tell me a stock you like better than Google/Alphabet Right Now and Why
Replies: 101
Views: 14962

Re: Tell me a stock you like better than Google/Alphabet Right Now and Why

I like Google as part of a diversified portfolio of zero-dividend stocks for people with onerous tax burdens. I have no reason to suspect it will outperform on a pre-tax basis. I think as part of a diversified portfolio of zero-dividend stocks it may outperform on a tax-adjusted basis (especially if you own it when you die after holding it for many years, or if you donate it to charity after minimizing your cost basis through tax-loss harvesting). I don't remember reading in this thread (I skimmed) that anyone recommended you try installing some ad-blocking software on your computer or smartphone. It might change the way you view Googles ad revenue. I'm a happy google fiber customer. I use Waze rarely, but I don't see how they are making mo...
by PoeticalDeportment
Wed Apr 12, 2017 12:17 am
Forum: Personal Finance (Not Investing)
Topic: High Income earners, whats your Tax Strategy?
Replies: 122
Views: 22703

Re: High Income earners, whats your Tax Strategy?

Hi all, My wife and I are maxing out 401k, but as our combined income is increasing, what other ways are there to save on taxes? I am interested to hear what some other high income earners are doing to save on taxes? If by "high income earners" you mean W2 income - then your options are limited. If you want to reduce your tax pain NOW, that means increasing pre-tax contributions to retirement plans (or spending more on mortgage, donating to charity, or other things that don't increase your net worth). If your 401k(s) do not meet your needs, rather than passively lamenting the taxes you pay, you should lobby your employer to change the plan to accommodate your needs. You could ask your employer to change your compensation to inclu...
by PoeticalDeportment
Sat Feb 11, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: low cost one person DB plan
Replies: 35
Views: 5882

Re: low cost one person DB plan

i expect a steady income for the next few years This is critical if you want to set up a cash balance plan - what do you mean by "steady income" and what do you mean by "the next few years?" Are you referring to your w2 income (which probably doesn't matter), or to the side business earnings (which matters)? contribute 70k/yr for 15 yrs: 1.05mil How are you getting $70k/year? If your side business has earnings of $140k/year I don't see how the amount you could contribute to a cash balance plan would be that high - am I missing something? i pay 2k initiation, 2k/yr, 5k termination= 37K? is it worth to pay 37k to save 367500 taxes Your math uses simple addition of costs. Over 15 years the time value of money becomes very ...
by PoeticalDeportment
Wed Oct 19, 2016 1:38 pm
Forum: Personal Investments
Topic: private equity investment
Replies: 2
Views: 789

private equity investment

So far I am a pretty good Boglehead (LBYM, index funds, reasonable asset allocation, etc.), but my heart has been wandering somewhat (see recent thread on "zero dividend investing"). In short order, I am going to be investing $20k in a friends small business. This amount represents (usually) less than 1 month of savings for me given my current income and expenses. I qualify as an accredited investor. We are probably going to use a SAFE (Simple Agreement for Future Equity) rather than a convertible note, or current equity stake. I know this instrument does not offer the most robust protection for the investor, but I am comfortable with that. My downside risk here is $20k (the friendship is not at risk). If my current financial traj...
by PoeticalDeportment
Sun Oct 02, 2016 7:51 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: Model zero-dividend portfolio (in the beginning)

I think you are focusing on two less important variables (commissions, dividends) at the expense of the most important variable (tax loss harvesting). The thousands of dollars I pay in taxes each year on dividends (from TSM/TISM) are the primary motivation for me to pursue this strategy (commissions are trivial, as you mention). Of course, this thread has helped me realize a lot of benefits that I was previously oblivious to. As far as tax loss harvesting, I have harvested enough losses from TSM/TISM to offset $3K/year of earned income for years to come, and could easily continue this without a change in my current strategy. I don't plan on selling anything that would generate capital gains anytime soon (several decades?), so the greatest ...
by PoeticalDeportment
Sat Oct 01, 2016 9:40 am
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Model zero-dividend portfolio (in the beginning)

To purchase the largest market share with the fewest number of transactions, it would make sense to buy the company with the largest market capitalization, which does not pay a dividend, within each sector. I came up with this list by looking at the Select Sector SPDR ETFs holdings, going down the list from largest market cap to smallest, and picking the first stock that appeared on a list of S&P500 stocks with no dividends. I could not find a utility stock that did not pay a dividend (go figure). Amazon.com Inc. (Consumer Discretionary is 12.53% of S&P 500) Berkshire Hathaway Inc. (Financial Services 12.70% of S&P 500) CBRE Group, Inc. (Real Estate is 3.10% of S&P 500) FMC Technologies, Inc. (Energy is 7.24% of S&P 500)...
by PoeticalDeportment
Sat Sep 17, 2016 11:47 am
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

Zero-dividend investing is Bogleheadish in that it puts expenses first, but then plunges you into a world where you have to pick individual stocks because there is no index-fund equivalent you can buy. One approach is to choose companies a la Buffett: reliable businesses that have significant use for new cash and a long runway in front of them. Easier said than done. Insurers like Berkshire Hathaway come to mind, who themselves maintain big stock portfolios and are like mutual funds. But what about after that? Do people have any thoughts on specific companies that work well here, that might be better than throwing darts at a list? I welcome the conversation on taxes. Bogleheads are going to quickly grow uncomfortable with a conversation ab...
by PoeticalDeportment
Sat Sep 17, 2016 11:33 am
Forum: Personal Investments
Topic: I have $3,000 to gamble
Replies: 71
Views: 12298

Re: I have $3,000 to gamble

since nobody else has mentioned it...

"Go into the casino, which is what Wall Street is today, bet on the entire stock market. And then get out of the casino and never show yourself there again."

— John C. Bogle
by PoeticalDeportment
Wed Aug 31, 2016 6:50 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

I would randomly select which stock to purchase each month from a list of zero-dividend-stocks with earnings. I hope that's not what Demuth is suggesting, because that's a plainly silly strategy, like choosing your life partner based on his favorite color rather than his moral and financial values. DeMuth suggested the zero-dividend stocks - randomly selecting which ones is my silly suggestions - which I still think is a reasonable idea. A better idea might be randomly selecting stocks within a sector, and trying to achieve sector exposure that mirrors TSM (I think this is similar to what Wagnerjb describes in his post mentioned above). I have absolutely no interest in a "company's cash flow management" or any other issue particu...
by PoeticalDeportment
Tue Aug 30, 2016 11:11 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

I don't think it's a crazy idea, but it may not work out the way you intended. If you implemented this 15 years ago you might have bough Microsoft. Shortly after that MS announced a special dividend and then regular dividends. Over the last 15 years MS has had a higher dividend yield and lower total return than the S&P500. The best-laid schemes o' mice an' men gang aft agley, I have considered this possibility. It may not be possible to truly achieve and maintain zero-dividends in the long term, but it probably is possible in the short term (when I know I am getting hosed on taxes). I have wondered why Vanguard's Tax-Managed Capital Appreciation fund has a dividend yield only nominally less than TSM? Did it start out with holdings like...
by PoeticalDeportment
Tue Aug 30, 2016 10:58 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

Hector wrote:I do not think that you are crazy to consider this.
What % of your stock allocation is in non-retirement account? Would you adjust your retirement account’s stock holdings to be close to total stock? If not, would you be okay with higher skewness that comes with tilting towards individual no dividend stocks?
We are currently about 65% of portfolio in tax-advantaged space, 35% in taxable. We mostly just own index/target date funds. I have not previously felt a necessity to tilt towards any factors, but if this strategy results in a taxable portfolio with a "growth" tilt, perhaps in makes more sense to "value" tilt the tax-advantaged space.
by PoeticalDeportment
Tue Aug 30, 2016 10:48 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

For those in the 25% to 33% ordinary income tax rate will pay taxes between 15% to 18.8% for qualified dividends. Those in the 39.6% ordinary income tax rate will pay 20% to 23.8% for qualified dividends. This could be a significant drag on performance for large portfolios. Don't forget state taxes. Don't forget mutual fund expense ratios. And the aforementioned unintended consequence of realizing income in years you would prefer to not have it: - higher social security taxes - higher medicare premiums - loss of ACA subsidies - less "low bracket space" for Roth conversions in pre-RMD, pre-social security years. And of course, if your investment returns come in the form of LTCG instead of dividends, there is a chance no tax may ev...
by PoeticalDeportment
Tue Aug 30, 2016 10:40 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

Wagnerjb wrote:
alec wrote:OP,

IIRC, a poster, "Wagnerjb," did the whole using non-dividend paying individual stocks in a taxable account thing. If you search his posts you'll likely find a few worth reading.

-Alec
Alec: thanks for the recommendation.

To the OP: here is a link to a thread where I explained my individual stock strategy, and the overview includes how to minimize the dividend yield.

viewtopic.php?p=291055#p291055

Best wishes.
Your approach seems more complicated, but probably more likely to have returns similar to the broad market than what I had planned. I think you describe in your post what I should be considering doing, if I take this path.

Thanks for sharing this.
by PoeticalDeportment
Sun Aug 28, 2016 8:27 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

For me, I first design the portfolio I want, and I then choose how to implement it cost efficiently. The converse seems to be choose a cost structure and then only choose investments that can fit into that construction. They are just different approaches, and to each his own. I prefer to invest in as much of the market as possible rather than in the slice that happens not to pay dividends, whatever that slice may look like. I appreciate that view. If my personal situation for tax-advantaged space, taxable savings rate, marginal tax rate, and tax rate for dividends and LTCG were different, I would share your view exactly. As you note, the impact of dividends on taxes is nothing to sneeze at. It really adds up over the years if you are in ma...
by PoeticalDeportment
Sun Aug 28, 2016 8:04 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

Dale_G wrote: Don't get "old" Poetical, just get more grown up. BTW Amundsen is one of my heroes. My tent is not Amundsen's tent, but a tent at old Byrd Station circa 1963-1964.

Dale
If you have slept in a tent in Antarctica, you have had a life of true adventure!

I'll confess, as you know, my current location is not actually Amundsen's tent - which is more of an aspiration for me. I am in the middle of family raising years, which involves its own adventures. Once people don't depend on me for the necessities of life, hopefully more adventures can be incorporated.
by PoeticalDeportment
Sat Aug 27, 2016 11:01 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

It is food for thought. About 27% of my tax burden is due to qualified dividends taxed at the 15% rate. Not too bad, but the dividend income flows to MAGI and ends up costing higher Medicare and part D premiums. ... I'll think about it. Dale You have given me some food for thought also. I realized that this would be helpful during future years before RMDs when making Roth conversions, but I didn't think about the impact on Medicare premiums or taxation of social security benefits - I just figured I am going to get hosed on those regardless of what I do. I guess if zero-dividen stock investing is really part of a long term strategy, I should keep in mind that in the long term I will grow old and be on medicare and receive social security. I...
by PoeticalDeportment
Sat Aug 27, 2016 6:47 pm
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

The problem with zero-dividend investing is that stocks which do not pay dividends are a smaller segement of the market, which reduces diversification. But you can come closer to zero-dividend investing without losing diversification. Vanguard Tax-Managed Capital Appreciation tracks the Russell 1000 index, but deviates from the index by favoring lower-dividend stocks with otherwise similar characteristics, and may also buy stocks after dividend dates and sell them before dividend dates to reduce taxes. This gives it a lower yield than other Vanguard large-cap funds. (However, it is more expensive; unless you are in a very high tax bracket, the tax savings on this fund will be less than the extra expenses compared to Vanguard 500 Index.) I ...
by PoeticalDeportment
Sat Aug 27, 2016 10:41 am
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

The taxes you pay on dividends have got to be a very minor part of your taxes because if you were in a low tax bracket you would be paying taxes on qualified dividends and if you were in a high tax bracket, then you would be paying lots more taxes on other income. If you had tax-advantaged accounts, you could put your dividend-paying funds in those accounts and put tax-exempt muni bond funds in your taxable account. Our taxes on dividends currently represent a single digit percent of our annual tax bill. Just because we currently pay much more tax on earned income doesn't mean I should disregard the taxes on dividends does it? Our current taxable savings rate suggests that our dividend taxes will increase by 1-2% of our annual tax bill in ...
by PoeticalDeportment
Sat Aug 27, 2016 10:29 am
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

Re: zero-dividend investing in taxable account

As with all investing, I'd worry of a fad and the price of these zero dividend stocks get bid up because of their desirability. If people rush in, there will be a rise in valuation but eventually they'll just be overpriced and have lower returns and people will want to get out. Where are they in that cycle? I don't think where they are in the cycle matters so much, I would be buying every month for years to come. ough. You add a lot of risk to avoid or rather postpone realizing a puny 2% dividend. The "puny" 2% dividend is 0.48% annual tax drag (plus 0.05% ER), which adds up over the decades. I would refer you to https://www.bogleheads.org/wiki/Tax-efficient_fund_placement and take a look at the "Appendix: comparison of hypo...
by PoeticalDeportment
Sat Aug 27, 2016 12:34 am
Forum: Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 58
Views: 11959

zero-dividend investing in taxable account

I recently read the new Phil DeMuth book, The Overtaxed Investor: Slash Your Tax Bill & Be a Tax Alpha Dog. The majority of the book was not revelatory for me: I already maximize tax-advantaged accounts, invest in tax-efficient index funds, tax-loss-harvest aggressively, and donate appreciated shares to charity. We have a reasonable asset allocation that involves TSM, TISM, savings bonds, REITS, wife’s TSP G-fund, etc. In “taxable” accounts, we hold TSM, TISM, series I and series EE savings bonds. We have a great savings rate. I love seeing the quarterly dividends show up in our account from TSM/TISM - in some ways the quarterly dividends serve as a useful carrot that motivates me to stick to our saving/investing plan (aka stay the cour...
by PoeticalDeportment
Tue Jul 26, 2016 11:33 pm
Forum: Personal Consumer Issues
Topic: What is this strange piece of scientific glassware?
Replies: 46
Views: 7772

Re: What is this strange piece of scientific glassware?

People have been blase about all kinds of things and mercury would be far from the worst. There are certainly things in any research lab today that are more harmful than mercury and there always have been. Awareness and regulation regarding handling is much improved, we hope. In college (late 90's early 2000s), I worked in a research chemistry lab. We had some inexpensive shelving made from horizontal plywood boards with nails hammered vertically in the corners which were connected by string to keep bottles of chemicals from falling off the edge. I remember seeing a several kilogram bottle of potassium cyanide several feet above the cement ground on one of these shelves which I was always slightly uneasy about. I wouldn't tolerate a simila...
by PoeticalDeportment
Sun May 29, 2016 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Funding a child's trust before death of grantor
Replies: 43
Views: 3400

Re: Funding a child's trust before death of grantor

There need not be any asset fee. This would be only if one were to hire a corporate trustee. If the beneficiary were the trustee, there would be no fee. This is another conundrum that I may not understand very well: If the grantor is the trustee, I understand that the trust balance is still included in the grantors taxable estate - notwithstanding annual gifts. If the beneficiary is the trustee, the grantors taxable estate is reduced, and trustee fees are avoided, but you sacrifice the asset protection - which is a significant reason for doing this in the first place. Am I incorrect with my understanding of either of those? I hope so. Is there a good way to do this without a corporate trustee fee? Thanks for the responses, this is very hel...
by PoeticalDeportment
Sun May 29, 2016 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Funding a child's trust before death of grantor
Replies: 43
Views: 3400

Re: Funding a child's trust before death of grantor

Hoping to increase my understanding of this topic by inquiring of the experts in this thread... I assume this thread is talking about trusts funded using Crummey power provisions to take advantage of the annual gift tax exclusion. Would a trust that is funded using Crummey power provisions still enjoy robust asset protection? or is it considered a self-settled trust because of the withdrawal right and therefore reachable by a child's creditors? Also, I assume one child would be the primary beneficiary, but who are the contingent beneficiaries? other siblings? cousins? I understand that when one beneficiary allows their Crummey withdrawal power to lapse, it is (potentially) treated as a taxable gift to the other beneficiaries. Is there a way...
by PoeticalDeportment
Fri Feb 05, 2016 12:07 pm
Forum: Investing - Theory, News & General
Topic: Take the Verb Tense Pledge!
Replies: 69
Views: 8699

Re: Take the Verb Tense Pledge!

Q. Why should you always say "I ran through the campground," instead of "I run through the campground?"









A. Because it is always past tents.
by PoeticalDeportment
Sun Jan 31, 2016 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 68
Views: 24840

Re: Retirement - Ten key years

Peter Foley wrote:2. Begin to create a cash reserve (or if you wish a “safe” bucket).
As a participant in this community, I consider myself honor bound to point out market timing, in any form, whenever I see it. Why is a cash reserve needed starting 5 years prior to retirement? Was the original asset allocation too aggressive? Was the market overvalued 5 years prior to retirement and it was deemed appropriate to "take some off the table?" Was the emergency fund during working years less than it needs to be during retirement years (hmm.. that didn't sound right)?

Please explain.
by PoeticalDeportment
Sun Jan 03, 2016 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Saved half of income last year - struggling to see the point
Replies: 62
Views: 14553

Re: Saved half of income last year - struggling to see the point

Have you considered significant charitable giving to a cause you and your wife care about deeply? Or, even better than writing a check, go volunteer at a soup kitchen or homeless shelter or emergency room. Maybe get a part time weekend job that involves hard manual labor for meager wages. It sounds like you are becoming numb to what an enviable position your family is in. For most people, even those who earn fat paychecks that exceed their present needs by wide margins, it takes many years (or decades) of high savings before they are sitting on a large enough pile of assets that truly allows for freedom and independence - you may not be as far along as you think. One year of saving 50% is really only a good start, not much more than that. ...
by PoeticalDeportment
Fri Dec 25, 2015 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house: Am I making a bad decision?
Replies: 45
Views: 6751

Re: Buying a house: Am I making a bad decision?

It seems like you might be getting dragged into a bigger, more expensive property than YOU need based upon your need to provide for your dog.

If I were looking to rent a room from someone, there is no way I would consider renting a room in the house of someone who owns a dog. For two comparable properties - your rooms will probably rent for less than some else's house because of your dog.

I'm not a big MMM fan, but you should give this a quick read: http://www.mrmoneymustache.com/2015/09/ ... -optional/

The dog may be a necessary part of your life, but it may sabotage your finances in more ways than you are appreciating.
by PoeticalDeportment
Thu Nov 26, 2015 8:56 am
Forum: Personal Consumer Issues
Topic: Best TV to buy
Replies: 96
Views: 13971

Re: Best TV to buy

When I was shopping for a TV several years ago, I found myself wanting the Sony Bravia. When it was sitting next to the Vizio in the store, it looked like a superior product to me. However, it was over twice the price. I bought the Vizio. When the Vizio is not sitting next to a Bravia for me to make the comparison, I never wish I had anything else.

Your experience viewing at home is different from the store.
by PoeticalDeportment
Mon Nov 23, 2015 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: This morning I had $13,XXX
Replies: 42
Views: 7938

Re: This morning I had $13,XXX

It was good to buy the minimum vtsmx ($3k).

Subsequent investments can be for smaller amounts though - this might be a good idea while you become acclimated to the normal volatility of a stock mutual fund (so you don't get depressed when it goes down in the short term). You might set up a recurring investment that will transfer the remaining $2500 to your vtsmx position by April 15th, 2016, or alternatively a balanced or target date fund.

You didn't specifically mention it, but are we safe to assume you bought the vtsmx in a roth IRA at Vanguard (to avoid unnecessary fees at other brokerages)?

Good start! You should read Bernstein's If You Can ebook while starting this journey.
by PoeticalDeportment
Wed Nov 18, 2015 9:12 am
Forum: Personal Finance (Not Investing)
Topic: How much is tax advantage space worth?
Replies: 42
Views: 6000

Re: How much is tax advantage space worth?

Unless you already have so much saved in pre-tax and taxable accounts that you have already filled up the 0% 10% and 15% tax brackets, your tax savings will be significantly more, and the value of your tax-advantaged space will be much greater.

If you are like most people, you probably won't be paying 25% tax on that money in withdrawal - in fact, it could be hardly anything.
by PoeticalDeportment
Mon Nov 16, 2015 4:51 pm
Forum: Personal Investments
Topic: In-Kind Transfer from Wealthfront to Vanguard
Replies: 16
Views: 10930

Re: In-Kind Transfer from Wealthfront to Vanguard

You may not have ANY long term capital gains if Wealthfront has been tax loss harvesting along the way - any gains are likely short term given your time frame and recent market history.

Be prepared for slow transfer of your basis information if you proceed with an in-kind transfer. You will sleep easier if you have separate, complete basis records for all of your tax lots before initiating the in-kind transfer.
by PoeticalDeportment
Thu Nov 05, 2015 10:03 pm
Forum: Personal Investments
Topic: Cash balance plan for young-ish person
Replies: 17
Views: 2831

Re: Cash balance plan for young-ish person

I am pretty sure if given the choice between tax deferred and taxable who can contribute this much (i.e. your salary needs to be up around 150k or so), most people will be much better off in tax deferred. Yes those RMDs are high. But odds are the tax rates now would be just as high. For example 78k for 30 years at 5% real is only ~5.5 millon. A lot of money but not really out of line for someone making ~350k+ and wanting to replace that income in retirement. Now for a person making 150k, they are saving too much. Doesn't matter where they are saving it:) Obviously things change when you change from a 30 year time frame to a 10 or a 15 year one as far as what percentage is a good idea but the general trend of tax deferred being better tends...
by PoeticalDeportment
Wed Nov 04, 2015 6:48 pm
Forum: Personal Investments
Topic: Cash balance plan for young-ish person
Replies: 17
Views: 2831

Re: Cash balance plan for young-ish person

If I were you, I would contribute as much to it as you are able. If you have a leaner year, where you can't afford to save as much, you may have to reduce contributions to your other "tax-deferred opportunities" as you probably cannot reduce the cash balance plan contribution on a yearly basis (they tend to be less flexible in that regard). You should also be contributing the max to a backdoor Roth IRA (for you and spouse, if applicable) and HSA every year. rgs92's comments make it sound like his perspective on these plans is one of an employee, which is rather different than your situation as an equity partner who is responsible for backstopping any shortfalls in plan returns (a risk worth assuming in my opinion). 3% might not so...
by PoeticalDeportment
Fri Aug 21, 2015 8:43 pm
Forum: Personal Consumer Issues
Topic: Visiting New York City this weekend. What pizza should I try?
Replies: 55
Views: 7646

Re: Visiting New York City this weekend. What pizza should I try?

for the pizza: Patsy's in Manhattan

for the experience: walk across the Brooklyn bridge, and then eat at Grimaldi's - and get ice cream at the place right by it
by PoeticalDeportment
Sat Aug 15, 2015 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 5612

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

Physician here. Wife is also a professional, but makes significantly less than I do. Our net worth is divided approximately 50%/50% between us, and we will continue the accumulation phase of life in this manner (50/50). I don't quite have 5 million of term life insurance, but close. By my projections, I am getting close to the point where my 50% of our net worth plus my term life insurance would put my estate over the federal estate tax exemption limit in 3-4 years. In order to be outside of your estate, I understand the insurance policy has to be held by the ILIT for a minimum of 3 years (otherwise, it is counted as part of your estate even if the policy is owned by the ILIT). So... by my estimation, in the next year or so, I should put at...
by PoeticalDeportment
Sat Aug 08, 2015 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: TLH and UTMA
Replies: 1
Views: 482

TLH and UTMA

If my spouse and I tax loss harvest in our taxable accounts, do we need to worry about coordinating that with purchases in a UTMA account for our child to avoid a wash sale?

I hope to be able to do this, but it seems like if this is possible it would be ripe for abuse. Is there somewhere I could find an authoritative answer?

Thanks
by PoeticalDeportment
Fri Jul 31, 2015 9:08 pm
Forum: Investing - Theory, News & General
Topic: Anyone hold Long Term Bonds?
Replies: 45
Views: 4969

Re: Anyone hold Long Term Bonds?

Sorry, haven't read the entire discussion, but I thought I would respond to the initial question.

TLT's sec yield is 2.85% - I don't own any.

I do own several years worth of series EE savings bonds with the intent of holding them 20 years (approx 3.5%).
by PoeticalDeportment
Fri Jul 03, 2015 4:32 pm
Forum: Personal Investments
Topic: $500 Graduation gift investment
Replies: 16
Views: 2727

Re: $500 Graduation gift investment

TD Ameritrade has commission free ETFs, which include VTI, BND, VEU - so you could construct a commission-free three fund portfolio without any transaction costs.
http://research.tdameritrade.com/grid/p ... onfree.asp

In order to get them commission free, you have to sign up for the commission free program, which is not the default when you open an account (so beware). This will also help him invest smaller subsequent sums.

The most valuable part of this $500 is the educational experience of helping someone young get excited about saving/investing.

After he gets it set up, ask him "so when are you going to make your next investment with some money that you have earned?"
by PoeticalDeportment
Fri Jul 03, 2015 1:40 pm
Forum: Personal Investments
Topic: How often should I check my accounts online?
Replies: 20
Views: 3780

Re: How often should I check my accounts online?

"Fidelity released a study discussing a performance breakdown for their accounts. The clients that did the best were the ones who were dead. The second best performing set of clients forgot they had Fidelity accounts."

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