Search found 102 matches

by NOVACPA
Fri Oct 28, 2016 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Sued for General [Investment] Advice?
Replies: 43
Views: 8438

Re: Sued for General Advice?

As a CPA, people always ask for advice ranging from my expertise (tax) to investments to insurance. The latter I am not qualified to give advice on and investments I can only opine on the tax aspect. That being said, I usually give my advice with the caveat that the advice is the same I'd give at a ...
by NOVACPA
Fri Oct 28, 2016 5:09 am
Forum: Investing - Theory, News & General
Topic: Crazy NonBH Strategy of Playing Options on ETFs?
Replies: 15
Views: 2977

Re: Crazy NonBH Strategy of Playing Options on ETFs?

I write weekly naked puts or covered calls in my brokerage account. The decay in the options is rapid. I do it with a fixed amount of capital of $11,000. This is the amount I have set aside for my IRA contributions. Due to the favorable tax treatment of index options (60/40 LT/ST Capital Gains) it b...
by NOVACPA
Wed Oct 05, 2016 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Which one to do first, a Refinance or Remodel?
Replies: 10
Views: 1104

Re: Which one to do first, a Refinance or Remodel?

An anecdote: In the last two years, I did a remodel, a refinance, and took out a HELOC on my condo. I had a 30 year at 4.625% (LPMI drove the rate higher) that was taken out in 2012. I had about 3% equity when I bought. I refinanced to a 5/5 ARM at 2.875% and paid all cost out of pocket. PMI was abo...
by NOVACPA
Fri Aug 12, 2016 10:05 am
Forum: Investing - Theory, News & General
Topic: Why are bonds taxed more than stocks?
Replies: 29
Views: 4702

Re: Why are bonds taxed more than stocks?

No need to delve into conspiracy theories on this one. Dividends are taxed at a lower rate than bond interest because corporations can't deduct the dividends they pay to their shareholders but they are allowed to deduct the interest they pay to their bondholders. Sort of a stab at minimizing the sp...
by NOVACPA
Wed May 11, 2016 6:28 pm
Forum: Investing - Theory, News & General
Topic: LendingClub/P2P the next subprime credit debacle?
Replies: 44
Views: 6865

Re: LendingClub/P2P the next subprime credit debacle?

What I keep seeing over and over and over again is people think they are LENDING TO the borrower. However, the Lending is to Lending Club with a payout defined by an underlying index the "investor" gets to pick (the borrower). If there are no credit events, the lender gets paid. If there is a credit...
by NOVACPA
Mon May 09, 2016 6:36 pm
Forum: Personal Investments
Topic: Best bank for Home owners association banking
Replies: 10
Views: 4655

Re: Best bank for Home owners association banking

This is not an endorsement, but I recall that Mutual of Omaha Bank (aka "Community Association Banc") tailored its business model for HOAs and condominium communities. http://www.mutualofomahabank.com/community-associations I am the treasurer of our HOA. We use Mutual of Omaha Bank. I like because ...
by NOVACPA
Mon May 09, 2016 8:20 am
Forum: Investing - Theory, News & General
Topic: Investor’s Friend “ fair value” est. for S & P 500: ‘1539’
Replies: 10
Views: 1932

Re: Investor’s Friend “ fair value” est. for S & P 500: ‘1539’

When they refer to "fair value" they are likely taking the present value of the S&P 500, or cash, and factoring in the borrowing costs to own all of the stocks in the index, dividends and difference between the current day and front month future expiration in order to mathematically derive a fair va...
by NOVACPA
Fri Apr 29, 2016 1:21 pm
Forum: Investing - Theory, News & General
Topic: LendingClub/P2P the next subprime credit debacle?
Replies: 44
Views: 6865

Re: LendingClub/P2P the next subprime credit debacle?

From the Prospectus... WebBank is the true creditor for all member loans to borrower members, which allows our platform to be available on a uniform basis to borrower members throughout the United States, except that we do not currently offer member loans in certain states. WebBank disburses the loa...
by NOVACPA
Fri Apr 29, 2016 1:05 pm
Forum: Investing - Theory, News & General
Topic: LendingClub/P2P the next subprime credit debacle?
Replies: 44
Views: 6865

Re: LendingClub/P2P the next subprime credit debacle?

Everyone understands that retail "investors" don't own the payment streams from borrowers, right? The first question in lending is... Who is the counterparty...? I bet it's not who you thinks it is with P2P lending. Many believe that they are buying the note and the credit risk is with the borrower....
by NOVACPA
Thu Apr 28, 2016 9:47 am
Forum: Investing - Theory, News & General
Topic: McKinsey report on diminishing returns
Replies: 91
Views: 11152

Re: McKinsey report on diminishing returns

Excellent report, thanks for posting it, Robert T. For financial planning, it seems prudent for investors, whether in the accumulation stage or the retirement stage, to use the slow-growth scenario (in orange below) — about 4.5% real return for stocks and 0% real return for bonds. There actually se...
by NOVACPA
Tue Apr 26, 2016 10:23 pm
Forum: Investing - Theory, News & General
Topic: the boglehead bias against options
Replies: 90
Views: 13367

Re: the boglehead bias against options

Aa always, make sure you know the risks before dive it. For me, on the first trading day of the year I sell puts with a notional value of approximately $5,500 with an expiration date of around April 15th. I choose an index (S&P 500 or EFA) that is cash settled as well and has 1256 contract elections...
by NOVACPA
Mon Apr 25, 2016 5:46 pm
Forum: Personal Investments
Topic: Why did Vanguard Reit go down
Replies: 9
Views: 2091

Re: Why did Vanguard Reit go down

Price of tea in China went up.
by NOVACPA
Fri Apr 15, 2016 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: [Tax filing mistakes made by your CPA (or yourself)]
Replies: 69
Views: 7062

Re: How often does your CPA screw up your taxes?

The above poster nailed it with the three types of errors. Data entry is in excusable as an OCR eliminates much of that. The software errors should also be a non-issue as there is a plethora of training available for all of the major providers (CCH, BNA, Intuit, etc.). The knowledge issue comes abou...
by NOVACPA
Tue Mar 29, 2016 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Advice for Passing the CPA Exam 2016-17 edition
Replies: 23
Views: 5886

Re: Advice for Passing the CPA Exam 2016-17 edition

I'm going to give another perspective. I passed my exam and got my license while I was consulting for the Coast Guard. Many of the men I worked with were officers who would have loved to be on a ship or at home with their families and not studying. However, the United States had them in the Financia...
by NOVACPA
Thu Feb 18, 2016 11:24 pm
Forum: Personal Consumer Issues
Topic: Northern VA / DC: Recommended building contractors?
Replies: 4
Views: 918

Re: Northern VA / DC: Recommended building contractors?

NOVA Remodelers

They did my entire condo and have done great work on other people's places.

The owners are two great guys and we're on site every other day with crews there daily.
by NOVACPA
Wed Feb 03, 2016 2:21 am
Forum: Personal Finance (Not Investing)
Topic: CPA cost for handling Tax Return - Is this too much?
Replies: 18
Views: 3785

Re: CPA cost for handling Tax Return - Is this too much?

i had long response written, but the forum deleted it so here: http://blogs.wsj.com/totalreturn/2013/01/24/what-tax-preparers-really-charge/ I charge $850 for a 1040 as a base fee. Its a threshold price to weed out the W2 only people since I do this as a side gig. $1250 for any business returns. I w...
by NOVACPA
Tue Jan 26, 2016 10:42 pm
Forum: Investing - Theory, News & General
Topic: Fees on Mutual Funds and ETFs Tumble Toward Zero
Replies: 0
Views: 472

Fees on Mutual Funds and ETFs Tumble Toward Zero

An article in the Wall Street Journal discussing how ‘Loss leaders’ boost returns for investors but come with new risks, by Jason Zweig. https://www.google.com/#q=fees-on-mutual-funds-and-etfs-tumble-toward-zero-1453858966&tbm=nws and http://www.wsj.com/articles/fees-on-mutual-funds-and-etfs-tumble-...
by NOVACPA
Sat Jan 23, 2016 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: What was your % pay raise?
Replies: 179
Views: 22135

Re: What was your % pay raise?

I've really enjoyed working at [Company] over the [period of time at company], and the opportunities I've had to take on new responsibilities and help us achieve our objectives. Cautionary note: If I was a manager I would have stopped reading right there, assumed you were resigning, forwarded the l...
by NOVACPA
Sat Jan 23, 2016 12:23 am
Forum: Personal Finance (Not Investing)
Topic: What was your % pay raise?
Replies: 179
Views: 22135

Re: What was your % pay raise?

From 2009 to 2011: 255% (First Job) From 2011 to 2012: 42.8% (2nd Job) From 2013 to 2014: 28.7% (Promotion) From 2014 to 2015: 20.03% (3rd Job) Likely 2015 to 2016: 3% (The benefits are good...?) I've interviewed inside or outside every year prior to compensation season for the following reasons: Re...
by NOVACPA
Fri Jan 22, 2016 11:15 pm
Forum: Investing - Theory, News & General
Topic: Why are REITs not providing any benefit in this market?
Replies: 45
Views: 6929

Re: Why are REITs not providing any benefit in this market?

Last week new REITs were banned from accessing FHLB funding. A 5 year sunset provision is in place for current REITS members. Is that a smoke signal for a housing/mortgage/real estate downward correction. I don't think it is a smoke signal. It's likely just noise. It will ruin a few, but if access ...
by NOVACPA
Thu Jan 21, 2016 6:21 pm
Forum: Investing - Theory, News & General
Topic: Why are REITs not providing any benefit in this market?
Replies: 45
Views: 6929

Re: Why are REITs not providing any benefit in this market?

Last week new REITs were banned from accessing FHLB funding. A 5 year sunset provision is in place for current REITS members.
by NOVACPA
Fri Dec 04, 2015 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Deconstruction Tax Implications
Replies: 3
Views: 778

Re: Deconstruction Tax Implications

Assuming you itemize your deduction and can benefit from the donation then you would come out ahead. When you deconstruct the builder will take the building apart by hand and salvage materials. These building materials will be evaluated by a third party appraiser. An independent value will be determ...
by NOVACPA
Thu Dec 03, 2015 6:20 pm
Forum: Investing - Theory, News & General
Topic: Teaching investment theory to a child
Replies: 30
Views: 2113

Re: Teaching investment theory to a child

Let him buy his own stocks and learn that way. My dad let me buy my own stocks, with my own money, and it was a great learning experience. I started when I was like 10. Nintendo and Wrigley gum. Needless to say, I did very poorly when I took over access at 18. I lost and wanted to know why. I learne...
by NOVACPA
Sat Oct 31, 2015 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Helping others become like us...
Replies: 44
Views: 3945

Re: Helping others become like us...

ryman554 wrote: I have no interest in getting a CFA or any other TLA to prove "I know something". I do take issue with the above statement and I'll address it separately. I DO have some of these licenses and professional designations. I saw firsthand the others in the classes and licensing exams wi...
by NOVACPA
Sat Oct 31, 2015 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Helping others become like us...
Replies: 44
Views: 3945

Re: Helping others become like us...

I'm 27, have two houses in one of the highest HCOL areas, max all tax advantaged accounts (HSA, 401k, IRA), make only 80% of the median income, and still eat at nice places and drink top shelf liquor. Sometimes they wonder how I do it and I say, "Remember those things I told you 3 years ago... I've...
by NOVACPA
Sat Oct 31, 2015 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Helping others become like us...
Replies: 44
Views: 3945

Re: Helping others become like us...

Investing has a math component but the behavioral, legal, regulatory, and political aspects tend to dominate the purely math aspect. You don't need a Three Letter Assignment to be able to provide sound advice. I think the OP's position is that many of sanctioning bodies tend to take the position th...
by NOVACPA
Sat Oct 31, 2015 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Helping others become like us...
Replies: 44
Views: 3945

Re: Helping others become like us...

I have no interest in getting a CFA or any other TLA to prove "I know something". I do take issue with the above statement and I'll address it separately. For someone to go through the 4 years of school, 3 years of exams, and 4 years of work experience, they are not doing to prove they know somethi...
by NOVACPA
Sat Oct 31, 2015 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Helping others become like us...
Replies: 44
Views: 3945

Re: Helping others become like us...

You can lead a horse to water but you can't make them drink. Clients I worked with wanted to tell me about how much they made via their latest investment when I had the annual conversation preparing for their tax filings. This would be in response to the question, "Did anything change from last year...
by NOVACPA
Wed Oct 14, 2015 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Military Retirement; "Should I stay or should I go now?"
Replies: 61
Views: 16283

Re: Military Retirement; "Should I stay or should I go now?"

Retire Now - Negatives - Military skills directly transferable to very few civilian jobs; Adds significant uncertainty to employment and income (though high income possible) Thank you for any assistance. :beer There are only two things a future employer knows for sure: How tall you are and how you ...
by NOVACPA
Wed Jul 29, 2015 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: CFA Exam Results
Replies: 19
Views: 2799

Re: CFA Exam Results

Congrats!

Having been licensed as a CPA lat last year, I will be begin my Level I class for the CFA tonight.

If you see my friends and family... Tell them I'm still alive and not buried under these books.
by NOVACPA
Tue Jul 14, 2015 6:54 am
Forum: Personal Finance (Not Investing)
Topic: Good Mortgage Companies?
Replies: 21
Views: 5579

Re: Good Mortgage Companies?

Navy Federal Credit Union, if you are eligible to join, has very good rates, no hassle service and never sells its loans. They do, like nearly every bank, sell their loans. It's what allows them to get cash to fund their next loan. A quick Google and skim of their 2012 Financial Statements (first t...
by NOVACPA
Thu Jul 02, 2015 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Accrued Interest When Selling Home
Replies: 3
Views: 996

Re: Accrued Interest When Selling Home

Interest accrues until funds are received by the lender. The opposite is also true (Interest is paid to the depositor as soon as the funds are received): "The Saudis once turned over a $760 million check to the U.S. military to cover defense costs. A military officer flew to New York aboard the Con...
by NOVACPA
Tue Jun 30, 2015 2:37 pm
Forum: Personal Consumer Issues
Topic: Use Turbotax Home & Biz or accountant for out of state short term rental property?
Replies: 6
Views: 1219

Re: Use Turbotax Home & Biz or accountant for out of state short term rental property?

To find a CPA: Your state has a society of CPAs. You can find yours here: http://www.aicpa.org/Research/ExternalLinks/Pages/AssociationsStateCPALinks.aspx You can then find there "For the Public" type link which should lead you to something like this: http://www.vscpa.com/public/referral/findcpa.asp...
by NOVACPA
Tue May 12, 2015 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on renting a room in my home to a friend
Replies: 30
Views: 22580

Re: Taxes on renting a room in my home to a friend

Via Pub. 527 "How to divide expenses. If an expense is for both rental use and personal use, such as mortgage interest or heat for the entire house, you must divide the expense between rental use and personal use. You can use any reasonable method for dividing the expense. It may be reasonable to di...
by NOVACPA
Tue May 12, 2015 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on renting a room in my home to a friend
Replies: 30
Views: 22580

Re: Taxes on renting a room in my home to a friend

I do this currently. I rent out one of the two bedrooms. Everything goes on Schedule E. Rent, Taxes, Interest, Insurance, Depreciation, Utilities, Repairs, etc. One half of everything is deducted as I am only renting out 50% of the unit, unless something is 100% attributable to the room (i.e. a fan,...
by NOVACPA
Fri May 08, 2015 3:44 pm
Forum: Personal Consumer Issues
Topic: How to educate myself about buying a house?
Replies: 11
Views: 1821

Re: How to educate myself about buying a house?

http://www.freddiemac.com/homeownership/educational/

And this is one I did before I bought to qualify for HFA type money that I didn't end up using but found helpful if you have no knowledge of the process: http://www.vhda.com/Homebuyers/Homeowne ... U0f2C43zlc
by NOVACPA
Thu May 07, 2015 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Credit union question
Replies: 16
Views: 2549

Re: Credit union question

Many credit unions hold onto their mortgages and do not sell them, so they don't end up bundled. I would agree that most CU hold onto the servicing of the loan, unlike some of their bank counterparts. But how would you determine this if the CU actually held onto the loan? From a customer viewpoint ...
by NOVACPA
Fri May 01, 2015 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Trying to Understand Business Health Insurance vs Personal
Replies: 11
Views: 1303

Re: Trying to Understand Business Health Insurance vs Person

15 10:46 am Ok, so it is not a straight deduction but 10% AGI exceed limit. You can only deduct medical expenses that exceed 10% of your adjusted gross income. So if AGI is 80K and Health Ins premium for family was 1000 a month for 12k, I can only deduct 4K right? You would still need deductions on...
by NOVACPA
Fri Mar 27, 2015 11:35 am
Forum: Personal Investments
Topic: please help me understand this stock award
Replies: 19
Views: 1337

Re: please help me understand this stock award

thanks. I still trying to understand how to calculate the shares of the option. again, let's say that the company is csco and i am starting today. the stock price is 27.15. based on the web below, the price of the option for the strike price of $27 is 0.17. So I would get 80000/0.17= 470588 shares?...
by NOVACPA
Tue Mar 24, 2015 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Choosing an accountant
Replies: 5
Views: 797

Re: Choosing an accountant

An EA, in most cases, must pass a three-part exam and a basic compliance check. A CPA, however, has far more extensive requirements, including: (1) meeting the 150-hour requirement (usually this means having a master’s degree in accounting or taxation), (2) passing a four-part examination that embod...
by NOVACPA
Tue Mar 24, 2015 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Choosing an accountant
Replies: 5
Views: 797

Re: Choosing an accountant

First, go here: http://www.aicpa.org/Research/ExternalLinks/Pages/AssociationsStateCPALinks.aspx Find your state where you do business. They should have a section like "For the Public". This will have a "Find a CPA" type link. Cross reference that with review sites, like Yelp or Angie's List. This w...
by NOVACPA
Tue Feb 24, 2015 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Basis for Roth 401(k) Rollover to Roth IRA
Replies: 7
Views: 1650

Re: Basis for Roth 401(k) Rollover to Roth IRA

1099R #2 has several errors, and unfortunately they will affect your tax program results. You should ask for a corrected 1099R with these changes. Boxes not listed are OK as is: 1) Box 2a - should show 0; blank is different than 0 since it means they don't know what amount is taxable. Box 2a is 0. ...
by NOVACPA
Mon Feb 23, 2015 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Basis for Roth 401(k) Rollover to Roth IRA
Replies: 7
Views: 1650

Re: Basis for Roth 401(k) Rollover to Roth IRA

An IRR in 2014 opens up an entirely new set of issues. The taxable amount of that is in 2a of the G coded 1099R. Then this same amount is included in the H coded 1099R for the Roth 401k being rolled to the Roth IRA. Can you post the numbers in the boxes for the H coded 1099R? I do not have Ttax, so...
by NOVACPA
Mon Feb 23, 2015 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Basis for Roth 401(k) Rollover to Roth IRA
Replies: 7
Views: 1650

Re: Basis for Roth 401(k) Rollover to Roth IRA

The pre tax 401k direct rollover should not trigger IRA questions since you indicated the rollover went into your new 401k pre tax account. Is that correct? Correct. It does not trigger IRA questions. The 1099R for your Roth 401k direct rollover to your Roth IRA should have an amount in Box 5. This...
by NOVACPA
Mon Feb 23, 2015 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Basis for Roth 401(k) Rollover to Roth IRA
Replies: 7
Views: 1650

Basis for Roth 401(k) Rollover to Roth IRA

I had a question on where I would be reporting the basis of a trustee-to-trustee Roth 401(k) rollover to Roth IRA. In 2014, I changed jobs and rolled over my 401(k) from Vangaurd to Fidelity which had Roth money and pre-tax money. The pre-tax portion went into my 401(k). The Roth portion went into m...
by NOVACPA
Sun Jan 18, 2015 1:12 pm
Forum: Personal Investments
Topic: Year-end financial statements?
Replies: 5
Views: 771

Re: Year-end financial statements?

I just print from Quicken:

Balance Sheet
Income Statement
Cash Flow Statement

It has this year's numbers and last year's numbers.
by NOVACPA
Fri Jan 16, 2015 2:13 pm
Forum: Investing - Theory, News & General
Topic: Buying Call Option to Fund 2015 & 2016 IRA
Replies: 18
Views: 1300

Re: Buying Call Option to Fund 2015 & 2016 IRA

I wasn't actually referring to your 401k when I mentioned getting $18k exposure for only $522. I am under the impression that you think spending $174 for $6k in beta for a year is a great deal. If that's a great deal, why not more? You're not obligated to buy the underlying. This is an independent ...
by NOVACPA
Fri Jan 16, 2015 1:10 pm
Forum: Investing - Theory, News & General
Topic: Buying Call Option to Fund 2015 & 2016 IRA
Replies: 18
Views: 1300

Re: Buying Call Option to Fund 2015 & 2016 IRA

So you agree that investing in an IRA in the future doesn't matter? The trade has to be evaluated on its own, not in the context of making an IRA contribution in the future. If all you want is exposure to the market, why did you pick a $200 strike price? Why not higher or lower? There isn't any rat...
by NOVACPA
Fri Jan 16, 2015 1:01 pm
Forum: Investing - Theory, News & General
Topic: Buying Call Option to Fund 2015 & 2016 IRA
Replies: 18
Views: 1300

Re: Buying Call Option to Fund 2015 & 2016 IRA

What am I missing? The market can be irrational longer than you can come-up with other mind games! I suggest funding the IRA when you have the money, and while at it, make sure your TOTAL savings are maximized to the best of your ability. I max at all tax advantaged accouts and adding to a taxable ...
by NOVACPA
Fri Jan 16, 2015 12:50 pm
Forum: Investing - Theory, News & General
Topic: Buying Call Option to Fund 2015 & 2016 IRA
Replies: 18
Views: 1300

Re: Buying Call Option to Fund 2015 & 2016 IRA

I don't understand how you are using the call option to fund your IRA. You are buying a speculative call on the index. Separately you are planning to invest in the index in the future. These are two separate trades, so I would evaluate them independently. Agreed. The OP can save $211.54 every paych...