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Thanks for all the inputs! it seems like they can only lend out shares if margin loan is borrowed. If no borrowing occurred, they will not be able to lend. Right? I called Schwab and turned off that feature anyway as I do not want to accidentally draw from margin during auto invest.

If both margin account and cash accounts can be lent to third party, then how does the segregation rule play in here to protect the assets?

Now I find out that schawab automatically add margin access to my account when I move to them. And is it true that shares in margin account is lendable to others, even if I do not borrow from the margin loans? In this regard, turning it off will prevent them from lending shares to others? I am always frustrated that with margin features, if I do the auto invest, once it runs out of money from cash, it will go to margin. Now with that feature off, the auto invest will stop without pulling any margin loan. Is that correct? Any other downside with turning off the margin feature that I need to consider before i make the move? Thanks again!

Hi all

I came across an information that shares in margin account can be lent to others by brokers. How can I tell if my shares sit in margin account or cash account at Schwab? Is there disadvantage to change it from margin account to cash account? I do not want to use margin at all. If so, how to turn off margin if My account type is margin account at Schwab? Thanks a lot!

That’s interesting to use transfer from external bank for auto investment. I wonder if you can use any bank such as ally or it has to be Schwab bank? Does Schwab bank offe good rate on money market or savings account?

Thank you all for the reply. It confirmed my understanding and it seems no easy way around. I have fidelity too and i May move this amount to fidelity and auto invest there. I keep both of them because I like their service. Thanks again!

Hi i am struggling with auto invest in achwab. Right now I have a good amount of cash in their Money market fund with good APY and wants to auto invest their S&P500 mutual fund over the next 24 months. But for auto invest, It seems that I have to put the money in cash position which earns very little interest. Not only that, if there is not enough money In cash, the auto invest will start to use margin which charges so high interest. How did you go about it to auto-invest? Appreciate the sharing!

I just closed one of my CD prior to maturity and bought a CD with much higher rate. I had to pay 6-month dividends as penalty. At the same time, I wonder if I have to pay the tax on dividends which was later taken away due to penalties. So how was tax gets deducted on the penalty part? Thanks!

[Duplicate thread merged here - moderator ClaycordJCA.]

I just closed one of my CD prior to maturity and bought a CD with much higher rate. I had to pay 6-month dividends as penalty. At the same time, I wonder if I have to pay the tax on dividends which was later taken away due to penalties. So how was tax gets deducted on the penalty part? Thanks!

Thank you all and I am thankful for the leanings that I gained from your reply.

Hi, each year I need to take RMD from an IRA account inherited from my late husband. He inherited this IRA from his dad and hence the RMD. I am in 50s. For the past years , I have taken RMD first and then donate it into a diner-advised fund, therefore have been paying taxes on it. It just occurred to me that if I could avoid this income tax by donating RMD directly to donor-advised fund? If so, how I should arrange so? Both the IRA and DAF are with fidelity. Thanks always for the advise!

Thank you all for the reply, especially on the underpayment part. Appreciate it!

I am getting ready to convert my traditional IRA to Roth by end of the year. I would like to confirm a couple of details before I pull the trigger. 1) no tax withholding from the acct, I will pay tax from my checking account later when filing tax. 2) in-kind transfer, without selling any positions. Did I plan it the right way so that it does not incur extra tax penalty? Is that only the conversion amount will be taxed? I heard that in some cases, conversion of partial account will involve the Whole amount of the TIRA being considered? Thanks again and I’d like to run by the community so that I do not fall into big mistakes. Thanks a lot as always

It is an interesting information that makes me think if I need to shop more for cheaper rates. Right now, I have my ho/auto/umbrella with safeco, which my broker found for me. As I live in San Diego at high fire risk area, safeco is the one that they can find for me to cover higher amount of replacement value(about ~1mm). The premium has increased steadily each year but not at an outrageous rate, but as more insurance companies drop areas with high fire risk, I am not sure when it will be my turn. As for umbrella insurance, I can get maximum 5mm with safeco for about $684/yr. For excess liability of another 5mm, my broker found me with Hudson insurance company, which charges me $755/year. So I am paying total about $1400/year for 10mm. I on...

jebmke wrote: ↑Wed Nov 16, 2022 4:37 pm

stan1 wrote: ↑Wed Nov 16, 2022 4:36 pm

jebmke wrote: ↑Wed Nov 16, 2022 4:34 pm Just make a grant from the VG account to the Fidelity account.

Yes, I did this a number of years ago. Contact Fidelity to get the exact instructions.

You can do it online via the normal grant process. I do it every year to put a small amount in a Fidelity DAF for a few small donations.

Is it possible to do it online, In the case that donor of both Vanguard and Fidelity accounts are the same person (me)? Would vanguard question that it was given to the account under same diner name? If doing online, where should I put my fidelity DAF acct # in the grant? Thanks again!

I got email from Vanguard that starting next Feb, it is going to charge $250 for donor-advised account if balance is under $25k. I have a donor account with fidelity already. How I can move all the money from vanguard donor-advise account to fidelity donor-account? And then I will close the vanguard account to avoid the fees charges. Thanks!

I have a big loss from the crypto I bought in 2019. And if I sell them now, it would be considered as long term loss. For tax savings, would it
1) offset the capital gains from my stocks I sold this year? 2) after the off-set, can the remaining loss be carried over to off-set the capital gains in case I sell more stocks next year? 3) any limit of years that the carryover loss can be used?

I am planning whether to sell them now or later.

Thank you for the advice!

Each year I am taking RMD(say 13k) from a IRA inherited from my late husband, which he had inherited it from his father. On the other hand, I have also donated certain amount of appreciated securities (25k) from my taxable brokerage account to a donor advised fund at fidelity. Is it possible just direct transfer the RMD to DAF, in such way 13k will not be counted as income? If yes, I could potentially donate the 25k partially from the inherited IRA and partially from appreciated securities in my taxable brokerage accounts. Not sure any benefits with this alternative route? The taxable income would be about the same regardless of the route, correct? Just running some idea now and really appreciate your advice!

Sorry for the confusion. Thanks for all the reply. I mean conversion from current inherited IRA from spouse to Roth over time. I understand it is a taxable event. CPA does mention the balance between paying taxes now vs later. I plan to retire early and May convert when the tax rate is lower. I will look through the link posted to get more understanding. Thanks again for all the reply!

My CPA suggested me rolling over my traditional IRA to Roth IRA for the reasons of free capital gains and no RMD. I have about 2MM in traditional IRA including the one converted from my late husband’s 401k. I am at marginal tax federal rate of 25% plus CA state tax. Is it a good idea to start the rollover now in patches? How should it be done strategically? Should I wait till my tax rate potentially get smaller when in retirement? I am 50 yrs old. Thanks always for the advice.

Thank you for the reply!

I am in the process transferring vanguard brokerage accts to Schwab. It turned out that VUSXX is not transferable, I am thinking of selling it and it will go to settlement fund (federal money market fund),so that I can be this portion transferred. is there any flaw in such approach, such as taxable capital gains/losses ,or other things I might miss? Thank you always for your advice!

For minis, any concerns about default at state level? Is treasury safer though the tax savings might be less?

It was sent by regular usps mail. I printed out tracking and delivery proof of the mail. I tried to call irs, but the auto machine said for such inquiry Of status, they no longer take calls due to high volumn. What’s the best way to get the status? Can I still file the tax on elected classification of form8832 based on the proof that I have, even though they did not send me the notice of acceptance after 6 months?

Hi I have submitted IRS form 8832 to have LLC being taxed as c-corp in April, so far I have not got any notification of receipt or confirmation from IRS, should I be concerned and call them. Or is it common that no receipt or acknowledgement will be received from them? Thank you for sharing your experience!

Thank you all for the sharing the information. I did not realize more work behind the upgrading and conversion. so thank you for the list of convertible funds. It looks to me it is simpler to just transfer all the funds in-kind as they are now. I will seldom sell the funds, but may purchase ETF in future. Does anyone have problems in-kind transferring mutual funds to Schwabs brokerage as they are, even they are currently admiral shares in mutual fund accts, instead of brokerage accts?

Hi all
I plan to move my mutual fund from vanguard to Schwab. Right now , most of my mutual fund are in admiral shares. Initially I thought of just in-kind transfer of all my shares as they are. I will not sell my shares frequently. For further investment I can purchase ETF instead. However, I read from some previous posts that I also can convert these shares to ETF first before moving. In order to do that, I will need to first upgrade my mutual fund acct to brokerage account and then call them to make the conversion. What is the benefits of doing so? I just want to weigh the benefits to see it is worth going through theses troubles?

Thank you always for providing ideas and advice!

During a recent conversation with fidelity advisor, he suggested me to have SMA instead of my current bond fond. His argument is that SMA will pick individual bonds for me to own, therefore, as long as I hold them to maturity, it will not be susceptible to price decrease in a interest rising environment. It is better than owning a bond fund. SMA’s min investment is 350k and fee is 0.35-0.4%. I am bit tempted as I’d like to own individual bond, but purchasing and managing individual bond myself seems too stressful for me. Have you had any experience with their SMA, is it worth the trouble going with SMA or just staying with bond fund or bond index? Is my preference to own individual bond a good direction? Thanks a lot and I learn a lot from ...

I recently moved to San Diego and I am looking for a good estate attorney to set up the estate planning. Any recommendations? Thanks!