Search found 883 matches

by AQ
Mon Mar 18, 2024 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Identity stolen?
Replies: 4
Views: 596

Identity stolen?

I received a privacy notice (those standard annual legal notice) from a bank. The only problem is that I never ever opened an account with that bank! Is it someone using my name/address to get an account there now??

I knew there is a place for us to look up how many credit cards we opened. Is there a similar place to look up bank accounts?

Plan to call the bank in next day or so, but not sure if the bank is willing to share info with me since I am not their customer.

Any and all advice appreciated. Thanks!
by AQ
Thu Mar 14, 2024 10:51 am
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

A question about LTPZ liquidity: I asked a similar question before, but would like to get some more assurance.

I started accumulating LTPZ by following this thread. Today real yields go up, so I looked up LTPZ again today, and found its AUM is only about 700mm. If I allocate a big chunk of my FI to LTPZ (I do plan to do), say, 700K, then my investment would account for 1/1000th of LTPZ? That sounds exceedingly high for a nobody investor like me.

Is this really something I need to be concerned with? I knew I'm paying 20bps fee and will migrate to individual TIPS once I get more comfortable with TIPS tax filing.

In a highly unlikely scenario, if LTPZ loses a lot of investors and dissolve its ETF, what would happen to remaining investors?
by AQ
Wed Mar 06, 2024 12:38 pm
Forum: Personal Investments
Topic: Email alert by Vanguard
Replies: 1
Views: 603

Email alert by Vanguard

Every time I submitted a fund purchase/exchange on Vanguard (the mutual fund platform), Vanguard immediately sent me an email alert titled as 'Notice of Transaction Submission'

I changed my job recently and the new company set its 401K with Vanguard. Now when I submitted trades on my 401K, I never received a similar notice for that. Both my taxable account and 401K are with the same login credentials/profiles/settings, so I'm puzzled.
I did receive a confirmation email after the transaction is completed though.

Is that the case Vanguard treats 401K plans differently and won't send Notice of Transaction Submission?
by AQ
Mon Mar 04, 2024 1:55 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149522

Re: Taxation of Treasury bills, notes and bonds

I bought quite a few reopened issues last couple of years and at that times I didn't even know it's an reopened issue. Now I'm doing my tax. One observation is that for those Treasury bonds or notes Fidelity placed coupon payments on 1099-int, but Accrued Market Discount on 1099-B. However, if it's a treasury bill, even if it's a reopened one, Fidelity simply reports it on an 1099-int. My point is: if one purchases treasury bills from auction through Fidelity, no need to worry about AMD even if it's a reopened issue. Not sure how other brokerages treat it though
by AQ
Sat Feb 17, 2024 12:22 am
Forum: Personal Consumer Issues
Topic: Can't Log On to Vanguard / Stop running script msg
Replies: 129
Views: 13004

Re: Can't Log On to Vanguard / Stop running script msg

Do we need to worry about getting our accounts locked by keeping trying different browsers, etc.? Or since our login/passwd are correct, it won't trigger a rule like locking the account by three failed attempts?
by AQ
Fri Feb 16, 2024 5:41 pm
Forum: Personal Investments
Topic: Money market funds in Fidelity for lower CA state tax?
Replies: 25
Views: 2240

Re: Money market funds in Fidelity for lower CA state tax?

Now my FDLXX finally working.. Is it possible to change my 'Core' account (i.e. settlement) to FDLXX? How? Thanks! I just transferred all my funds from SPAXX to FDLXX, but I actually planned to get a 52week tbill next Tuesday. If I can't use FDLXX as my core position, then I'll have to miss Tuesday's auction (Monday is a holiday) :( Yes and No: Yes: FDLXX will automatically be used to settle your other purchases No: Newly settled $ (from sold positions or dividend/interest etc.) will not automatically be moved to FDLXX. You will have to place an order to buy FDLXX. The above is my personal experience. Understood the 'No' part. Right now my Core position is about zero and my cash is placed in FDLXX. I hope I am able to place an order for ne...
by AQ
Fri Feb 16, 2024 4:29 pm
Forum: Personal Investments
Topic: Money market funds in Fidelity for lower CA state tax?
Replies: 25
Views: 2240

Re: Money market funds in Fidelity for lower CA state tax?

Now my FDLXX finally working..

Is it possible to change my 'Core' account (i.e. settlement) to FDLXX? How? Thanks!

I just transferred all my funds from SPAXX to FDLXX, but I actually planned to get a 52week tbill next Tuesday. If I can't use FDLXX as my core position, then I'll have to miss Tuesday's auction (Monday is a holiday) :(
by AQ
Thu Feb 15, 2024 8:42 pm
Forum: Personal Consumer Issues
Topic: What email address is "okay/acceptable" to use then?
Replies: 168
Views: 18037

Re: What email address is "okay/acceptable" to use then?

I have gmail many years ago, but rarely used it after a while for an odd reason. I found I keep receiving very customized ads from google, as if it had read all my email exchanges and knew everything about my life.. I have no delusion about internet privacy nowadays. Still, it's one thing someone somewhere keeps track of everything about me; it's different to be reminded with every email drafted 8-) google just too good for me to feel a bit creepy
by AQ
Thu Feb 15, 2024 7:36 pm
Forum: Personal Investments
Topic: Money market funds in Fidelity for lower CA state tax?
Replies: 25
Views: 2240

Re: Money market funds in Fidelity for lower CA state tax?

retired@50 wrote: Thu Feb 15, 2024 7:08 pm
AQ wrote: Thu Feb 15, 2024 7:00 pm I tried to open a FDLXX account by buying $100 at Fidelity yesterday.. Surprised it's still pending. I thought Fidelity does these things much faster. Is FDLXX or money market accounts special?
Where was the $100 bucks?

At your local bank, or already at Fidelity in SPAXX or some other money market fund?

Regards,
Already in SPAXX. Following recommendation from this thread, I'm trying to start FDLXX with $100. The order was placed yesterday. Now after market close, it's still pending. No rush on my side, still surprised why it would take this long. I recalled if I exchanged a mutual fund position, it would take effect by now.
by AQ
Thu Feb 15, 2024 7:00 pm
Forum: Personal Investments
Topic: Money market funds in Fidelity for lower CA state tax?
Replies: 25
Views: 2240

Re: Money market funds in Fidelity for lower CA state tax?

I tried to open a FDLXX account by buying $100 at Fidelity yesterday.. Surprised it's still pending. I thought Fidelity does these things much faster. Is FDLXX or money market accounts special?
by AQ
Wed Feb 14, 2024 4:53 pm
Forum: Personal Investments
Topic: Money market funds in Fidelity for lower CA state tax?
Replies: 25
Views: 2240

Re: Money market funds in Fidelity for lower CA state tax?

Terrific! Thanks very much!! exactly what I was looking for.

Does anyone know that the CA muni money market would be tax free 100% from Fed and CA?

Another related question: Let's say I park the cash in one of these funds. When I make an buy order and the settlement fund doesn't have sufficient fund, will Fidelity automatically pull the fund from other money market funds? If so I plan to keep all my cash in Treasury Only money market, for example.
by AQ
Wed Feb 14, 2024 3:59 pm
Forum: Personal Investments
Topic: Money market funds in Fidelity for lower CA state tax?
Replies: 25
Views: 2240

Money market funds in Fidelity for lower CA state tax?

Right now I'm using Vanguard Treasury Money Market; Not 100% state tax free but 80% is pretty good. No complaints.

For Fidelity I found none of Money Market funds or Government money markets meet the threshold for California. Never concerned about this since yields were very low just a couple of years ago. Now it seems making sense to find a parking place at Fidelity for money in transition without need to pay state tax. Any recommendations?

(I did place most of cash in T-bills, etc. But when they mature or when I buy/sell some securities, cashes park in the settlement funds. Not a whole lot but still meaningful with 5% yield)
by AQ
Tue Feb 13, 2024 5:41 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

The 204x TIPS did not quite hit 2.25% today, but close enough for government work. With my personal trigger point reached I put another $10,000 into LTPZ. I wonder if I'll get another chance to buy at >2.30%? Here's hoping; I have maybe $20K left of nominal bonds that could be cracked out of Wellington. After that point, at $50K above my notional target of $400K, and all my nominal bonds liquidated, I would need to see the 2040s get above 2.5% once more, before beginning to liquidate some of my TIAA Traditional, where older vintages weigh down the overall rate, probably still under 5% after the March update, and the loyalty bonus is not large ... Unlikely, but good to have a plan, just in case. Thanks for the update. I started trading LTPZ...
by AQ
Tue Feb 13, 2024 4:23 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

Real yields rising again and already loaded up some LTPZ. Very tempted to dip into individual TIPS. Some tax questions:

If I buy TIPS on secondary market, and hold it to maturity. Which of the following true?
a) Broker issues a 1099-int; both coupons and inflation adjustment go to Box 3?
b) Broker issues a 1099-div; both coupons and inflation adjustment go to Box 1a?
c) do I need to deal with an Accrued Market Discount annually? (the difference between purchase price and par)

I guess I figured out dealing with tax issues with a nominal treasury bonds; what differences for tax filing between a nominal and TIPS? When will Kevin start a thread about TIPS? :-D
by AQ
Mon Feb 12, 2024 5:06 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149522

Re: Taxation of Treasury bills, notes and bonds

A data point about entering Accrued Market Discount for State tax filing. I'm using TurboTax 2023 Home&Business. I bought 2 Treasury bonds on secondary market and held to maturity. Fidelity 1099B reports the difference between purchase price & par as AMD. TT offers two ways to enter 1099B. The 'summary' approach won't work for AMD. So I entered the numbers for trades one by one. There is a button you could select to enter AMD to box 1F. Then TT will report capital gain = 0 on form 8949, and AMD as interest income on Schedule B. So no dummy 1099-INT needed. However, the State tax part doesn't treat this AMD as government obligations and charge me state tax (I'm a CA resident). When I played State Tax part, there is a radio 'Interest/...
by AQ
Mon Feb 12, 2024 3:53 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149522

Re: Taxation of Treasury bills, notes and bonds

jeffyscott wrote: Mon Feb 12, 2024 2:59 pm
AQ wrote: Mon Feb 12, 2024 2:45 pm btw, does anyone know how to search a megathread like this one? Right now I do it one page by one page with a keyword. With 16 pages and growing it's painfully tedious ..
There's a "search this discussion" box near the top of the page.
Thanks!! I'm on this forum for >10 years and didn't know this function right there :?
by AQ
Mon Feb 12, 2024 2:45 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149522

Re: Taxation of Treasury bills, notes and bonds

The way I've done this with tax software is to create a dummy 1099-INT and enter the interest in it. You would enter it into either box 1 or box 3 of the dummy 1099-INT, depending on whether or not the accrued interest is exempt from state and local income tax. As I recall, I entered it in box 3. I am a CA resident. Kevin @Kevin, is the following what your approach is as described in quoted comments above? Let's say as an example I bought a Treasury bond with $950. At maturity it's redeemed at $1,000. The 1099-B would report 1F (i.e. AMD) $50. If I understand you correctly, for tax software, you either enter a 1099-B with an adjusted basis $1,000, so no capital gain/loss. Or simply ignore this trade on 1099-B altogether. (which way did you...
by AQ
Mon Feb 12, 2024 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity showing T-Bills as Capital Gains
Replies: 45
Views: 7263

Re: Fidelity showing T-Bills as Capital Gains

I am using TurboTax Premier 2023 (Desktop version) and when I enter this 1099-B using Step-by-Step, there are no options provided to identify Accrued Market Discount entries - only Short/Term Capital Gains/Losses. If I switch to Forms, neither on Schedule B or Form 8949, this is not entered as Accrued Market Discount, but as Short Term Capital Gain. So it seems I have to force this entry (Accrued Market Discount) manually using the Forms section, as Step-by-Step does not provide such an option. Either I am doing something wrong (using the Step-by-Step) or TurboTax did not include this option in the flow or missed it completely (as they have been known to do on multiple occasions). Here's a post in the Taxation of Treasury bills, notes and ...
by AQ
Sun Feb 11, 2024 7:03 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149522

Re: Taxation of Treasury bills, notes and bonds

The way I've done this with tax software is to create a dummy 1099-INT and enter the interest in it. You would enter it into either box 1 or box 3 of the dummy 1099-INT, depending on whether or not the accrued interest is exempt from state and local income tax. As I recall, I entered it in box 3. I am a CA resident. Kevin @Kevin, is the following what your approach is as described in quoted comments above? Let's say as an example I bought a Treasury bond with $950. At maturity it's redeemed at $1,000. The 1099-B would report 1F (i.e. AMD) $50. If I understand you correctly, for tax software, you either enter a 1099-B with an adjusted basis $1,000, so no capital gain/loss. Or simply ignore this trade on 1099-B altogether. (which way did you...
by AQ
Sun Feb 11, 2024 6:38 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

I have some limit order for LTPZ at 54.4; so far it was close but not yet filled..

I planned to start getting some individual TIPS in 2024; but the headache due to tax issues with a couple of Tbonds from secondary market made me pause for the time being now.
by AQ
Sun Feb 11, 2024 1:51 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149522

Re: Taxation of Treasury bills, notes and bonds

Hebell wrote: Sun Feb 11, 2024 11:24 am For those looking for tax treatment in the state of Minnesota, the web page link is here:

https://www.revenue.state.mn.us/us-g ... nterest

You'll see the OID is subtracted/ exempt.
As to implementing it in turbotax, I'll be doing it this week.
Would highly appreciate it if you can share how you implement it in turbotax with the fed tax part as well. Thanks!
by AQ
Sun Feb 11, 2024 1:50 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149522

Re: Taxation of Treasury bills, notes and bonds

For Fed tax, I guess it doesn't matter, perhaps even better for me since I'll pay long term capital gain tax instead of income tax? But this way I have to pay State tax then (California)? I would think this so-called Accrued Market Discount is part of my interest income, and thus exempt from state tax. How could I make it work? (I'm using TurboTax) TurboTax will very likely do the right things: Include a Form 8949 with the income tax return that has the data from the 1099-B. On the Form 8949 have an adjustment with code D (in column (f)) and the accrued market discount (in column (g)) that reduces the gain by the accrued market discount. Include the accrued market discount amount in the interest reported on Schedule B of the income tax ret...
by AQ
Sat Feb 10, 2024 12:05 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149522

Re: Taxation of Treasury bills, notes and bonds

My dreaded question from buying Treasury bonds on secondary market came... I bought a Treasury bond in 2022 with a heavy discount (rates were rising big). I kept it until the bond matured in 2023. Now Fidelity put this bond in its 1099-B, and a big number in Box for Accrued Market Discount, which is also included as part of long term capital gains (I held it over a year). For Fed tax, I guess it doesn't matter, perhaps even better for me since I'll pay long term capital gain tax instead of income tax? But this way I have to pay State tax then (California)? I would think this so-called Accrued Market Discount is part of my interest income, and thus exempt from state tax. How could I make it work? (I'm using TurboTax) I went through this thre...
by AQ
Fri Feb 09, 2024 10:37 am
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455662

Re: Trading Treasuries (nominal and TIPS)

An interesting observation today when I looked up finance.yahoo.com. specifically I saw the trading volume for LTPZ is 52K. I placed an order with 500 shares. Does that mean my order accounts for 1% of trading volume? That would be stunning! I must misunderstand something?
by AQ
Fri Feb 02, 2024 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: cobra processing time question
Replies: 7
Views: 603

cobra processing time question

A bit anxious since I'm seriously contemplating submitting my resignation in next a couple of months. One thing I really want to be sure is health insurance. I plan to use Cobra at least for a while to buy some time to sort things out. (I won't consider ACA for 2024 until 2025 onward so let's not go there) When my employment ends, the worst scenario is my employer sponsored health insurance will end on the next day or so. But it takes quite a bit time for me to receive the Cobra paperwork, to submit to the administrator. During this time do I live in a limbo? what if something happens between? Does doctors' office still take my insurance card, or I have to pay up myself first? Does the Cobra coverage literally continue from the day the 'reg...
by AQ
Thu Feb 01, 2024 11:22 pm
Forum: Personal Investments
Topic: Vanguard Transaction Method
Replies: 76
Views: 5350

Re: Vanguard Transaction Method

Glad OP seems able to reclaim the funds. Scary stuff.

Guess this is not in OP's mind but I'm curious: now going through this process. I suppose no trades can be done at all and all positions are assumed to be the same as on the day the funds were transferred out fraudulently?
by AQ
Thu Jan 25, 2024 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Unusally large refund expected. Now what?
Replies: 9
Views: 1527

Re: Unusally large refund expected. Now what?

the_wiki wrote: Thu Jan 25, 2024 10:55 am
toddthebod wrote: Thu Jan 25, 2024 10:50 am $60,000 is not a lot of money as far as the IRS is concerned. I wouldn't expect any difference between that and a $600 refund.

This is an organization that includes in their instructions that they can't process checks over $100,000,000, so please split it into multiple checks.
Elon Musk was complaining his tax bill was $11 billion after selling $40 billion in TSLA shares, so that warning makes sense. :mrgreen:
I always assume people like Musk live in a different (financial) world. They must have their own banks to do these things. For example, many banks have daily ACH limits as low as $2,000 which even me considers it quite inconvenient :D
by AQ
Thu Jan 25, 2024 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Unusally large refund expected. Now what?
Replies: 9
Views: 1527

Unusally large refund expected. Now what?

Last evening I did an initial quick take on my 2023 tax. It appears my refund could be 60K, or even higher. Quite a shock for me. Now what things I need to be aware of, and what should I do? My income always has some components like capital gains from a private placement quite unpredictable and thus I often ended up with over/under-paying for thousands of dollars, but this year is quite an extreme. Now looking back, I had to pay an underpayment penalty for 2022 tax, and thus tried to over-pay it a bit in 2023. However, my incomes dropped significantly last year. I did have multiple chances to review and adjust my withholding / estimated taxes along the way but somehow escaped me. My current concern is not regretting to have given IRS a free...
by AQ
Mon Jan 22, 2024 6:05 pm
Forum: Investing - Theory, News & General
Topic: New fee for Vanguard mutual [and brokerage accounts - July 2023 updates]
Replies: 2094
Views: 215657

Re: New fee for Vanguard mutual [and brokerage accounts - July 2023 updates]

As of 01/08/2024, it looks like the $25 account service fee is charged for accounts less than $5M regardless of whether you opted for electronic delivery or mail service. I still keep the mutual fund only platform, and my balance is below $5mm. I guess I have been charged $25 fee? I'd like to figure out if that is indeed the case or not. Questions: 1) $25 per mutual funds I hold, or a flat $25 for my whole account? 2) when was it charged? (2023 or 2024) 3) I keep 25 mutual funds (yes, I knew it was too many; most opened decades ago). Does Vanguard charge it to a MMM? I couldn't find the fee yet, and didn't receive any notice/email about the fee charged, or waived.. Thanks! You'd be looking at $625 in fees. They handle it as a withdrawal of...
by AQ
Mon Jan 22, 2024 3:06 pm
Forum: Investing - Theory, News & General
Topic: New fee for Vanguard mutual [and brokerage accounts - July 2023 updates]
Replies: 2094
Views: 215657

Re: New fee for Vanguard mutual [and brokerage accounts - July 2023 updates]

whohasaquestion wrote: Mon Jan 08, 2024 11:15 am As of 01/08/2024, it looks like the $25 account service fee is charged for accounts less than $5M regardless of whether you opted for electronic delivery or mail service.
I still keep the mutual fund only platform, and my balance is below $5mm. I guess I have been charged $25 fee? I'd like to figure out if that is indeed the case or not. Questions:

1) $25 per mutual funds I hold, or a flat $25 for my whole account?
2) when was it charged? (2023 or 2024)
3) I keep 25 mutual funds (yes, I knew it was too many; most opened decades ago). Does Vanguard charge it to a MMM? I couldn't find the fee yet, and didn't receive any notice/email about the fee charged, or waived..

Thanks!
by AQ
Wed Jan 17, 2024 9:11 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

Not plan to participate in this week's auction. Insisting on getting yield > 2% :D

There are some references to seasonality of yields. Are there some months of year when yields tend to be higher historically? Can we time it by using that knowledge? :D
by AQ
Tue Jan 09, 2024 4:08 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455662

Re: Trading Treasuries (nominal and TIPS)

Today I wanted to sell 10 more of my Jan 2024 TIPS and buy some 204X TIPS with yields of about 2.1%, but Schwab doesn't have any bid or ask quotes for the Jan 2024. When I request a bid I get an error. It's not worth it to me to call the bond desk. Interestingly, Fido has a decent book on the Jan 2024s, as we saw in my previous post. Fido +1, Schwab -1. I'm keeping score. :wink: Schwab seems to be on the conservative side when it comes to offerings when yields are negative, as they are on the ask side for min qty 1. I remember that you had to call to trade TIPS when yields were negative. I'll just take this as a sign that I should hold the rest of my Jan 2024s till maturity. Yields are higher now than when I started swapping, so hopefully ...
by AQ
Mon Jan 08, 2024 2:14 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

So far I've done LTPZ only, but attempt to get some individual TIPS as well following this thread. Unfortunately I have to do it in my taxable account. Does tax reporting for individual TIPS get much more complicated vs. a TIPS fund like LTPZ? Or sticking to auction for new issues simplify it a bit? (I don't worry about 'phantom income' since I could always use other sources to pay tax. But not sure if those discount/premium/inflation ratios could make an otherwise state-tax free income suddenly become state-taxable, if I purchase individual TIPS on a secondary market)
by AQ
Mon Jan 08, 2024 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Gift tax form: record keeping questions
Replies: 6
Views: 950

Re: Gift tax form: record keeping questions

toddthebod wrote: Sun Jan 07, 2024 4:52 pm
AQ wrote: Sun Jan 07, 2024 4:45 pm In a community property state, it seems requiring both spouses file their own gift forms by splitting the gift (no choice to my understanding). I was very happily surprised that California does NOT require a gift tax form by searching internet. Is that true & Could someone please confirm?
You both need to file form 709 if you are gifting community property, but you are not "gift splitting".
Form 709 instructions say "If a gift is of community property, it is considered made one-half by each spouse." So even if I wrote a check from an account titled by my name alone, it's still treated as if me and my spouse made one-half. Isn't this 'gift splitting', or I miss something?
by AQ
Sun Jan 07, 2024 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax form: record keeping questions
Replies: 6
Views: 950

Gift tax form: record keeping questions

I made a monetary gift to one of my children for house purchase in 2023. Try to get the gift tax form done before everyone gets to the busy income tax season :D In a community property state, it seems requiring both spouses file their own gift forms by splitting the gift (no choice to my understanding). I was very happily surprised that California does NOT require a gift tax form by searching internet. Is that true & Could someone please confirm? Anyway, most of my questions are how to keep records for this gift-giving thing: 1. Since we have to file paper forms, how do I prove I did file it on a timely basis? In the past for my income tax, I did a certified mail with a USPS receipt. Do you think that is a good way, or other ways you ma...
by AQ
Wed Jan 03, 2024 3:02 pm
Forum: Personal Investments
Topic: Vanguard closing mutual fund prices for Dec 29?
Replies: 168
Views: 35639

Re: Vanguard closing mutual fund prices for Dec 29?

Friday's delay of prices is annoying, so are many errors people discussed here. But no one talked about the really big one: the account balance?

I never try to reconcile my account balance like balancing a checkbook; I have no reasons to believe Vanguard would make mistakes there, or any other brokerages I used. But numerous errors in this thread is alarming. What if Vanguard short-changed me a few hundreds due to an IT error? I would never know. Anyone is concerned?
by AQ
Fri Dec 29, 2023 2:57 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

Stepping back, the question of the hour: is the bear market in bonds over? What do you think, now that you see the rally of the past two months in context? I'm skeptical that we've already licked inflation and will have a soft landing, instead of a recession. If we have a recession, I'll be more likely to believe the bear market for bonds is over. If we don't have a recession, I'm skeptical that we've actually solve the last mile (3% -> 2%) of inflation due to service / labor costs in a tight job market. And if we haven't beaten inflation, I'm hesitate to say the bear is over. I'm not sure if inflation has peaked or not. But I'll hedge inflation risk by investing in TIPS and take deflation risk by not buying TLT. I was actually surprised b...
by AQ
Thu Dec 28, 2023 11:19 am
Forum: Personal Finance (Not Investing)
Topic: ACA before medicare
Replies: 43
Views: 5359

Re: ACA before medicare

Thanks again for many insightful comments! One takeaway is that ACA plans have likely poorer coverage than employer-sponsored ones on average, though it certainly depends on specific plans. But isn't it the case that many places won't take medicare either? So I guess that is what it is.. Cobra: I do plan to use Cobra, if it's available (haven't consulted with our HR yet. don't want to give them a heads-up). But Cobra has a time limit, which is not long enough to bridge me over to medicare.. Stay on a corporate job: some suggested I stay on to keep the benefits. This is my dilemma: on one hand, with chronic conditions, I should work for longer, to get better health insurance, to save money for rainy days (higher expenses for long term care f...
by AQ
Wed Dec 27, 2023 7:42 pm
Forum: Personal Investments
Topic: Long term fixed income. Is it time?
Replies: 30
Views: 4337

Re: Long term fixed income. Is it time?

TIPS are no less tax efficient than nominal Treasuries in taxable; there is no state income tax, so that helps tax efficiency for those who pay state income tax. People worry about the "phantom income", but if you're going to reinvest the interest anyway, what difference does it make? You're getting the full amount of the inflation adjustment reinvested automatically, and that compounds just like any other reinvested interest. The quoted statement is certainly true that 'phantom income' along with interest payments is state-tax-free, IF we purchase TIPS (or nominal treasury for that matter) from auctions. But I'm not sure if we go to the secondary market where we need to deal with amortized premium, capital gains/loss, etc (don't...
by AQ
Tue Dec 26, 2023 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: ACA before medicare
Replies: 43
Views: 5359

Re: ACA before medicare

OP here. Many thanks for your response! I added one more question:

5. How useful to engage an ACA counselor? I believe it's free service to us?
by AQ
Tue Dec 26, 2023 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: ACA before medicare
Replies: 43
Views: 5359

ACA before medicare

Looking forward to the new year, and considering to retire in 2024. The first concern is about health insurance. We don't have alternatives but go for ACA. 1. Is an ACA PPO plan as good as a typical employer-based one? We have some chronic issues and concerns about health insurance is what held us back. I wonder an ACA PPO while expensive would behave like a typical PPO I'm familiar with, i.e., we could go to any doctors, to specialists without referral requirements, etc. For example, does ACA BCBS PPO have a similar in-network as an employer based BCBS PPO? Or somehow I have the impression an ACA insurance is less likely accepted by doctors due to its lower paying rates to doctors? (we live in a big California metro if it matters) 2. ACA p...
by AQ
Mon Dec 25, 2023 12:31 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

reading and learning here. It sounds like 'ideally' one has a TIPS ladder which matures each year with an amount equal to expected expense for that year. That way duration is perfectly matched in addition to inflation risk.

But for retirees, RMD might disrupt this plan? In other words, if one builds his/her TIPS ladders in their deferred accounts, they may be forced to take out prior to planned dates? In light of this consideration, should we keep TIPS ladder in taxable accounts then?
by AQ
Sun Dec 24, 2023 8:11 pm
Forum: Investing - Theory, News & General
Topic: What is Your Biggest "Good Problem to Have"? [Financial]
Replies: 97
Views: 13683

Re: What is Your Biggest "Good Problem to Have"? [Financial]

I possess skill sets in a niche market which has been in high demand, so I keep getting good paying job offers. I actually wanted to retire quite a few years ago and it's been difficult to voluntarily quit. Will give it another try in 2024 and wish me good luck :D
by AQ
Sat Dec 23, 2023 7:16 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

A lot of discussions about tips ladders and target duration here. If one is 70 years old, and plans to live to 100, does it mean that either tips ladders, or a few tips funds should have an average duration of 15 years? (i.e. (100-70)/2) Is this how I should approach this duration thing?
by AQ
Thu Dec 14, 2023 3:49 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611813

Re: Now that long TIPS yields are 60 bp off their highs I will…

Thanks to this thread, I started to build positions in ltpz. Was late in the game my cost basis was low and happy to see a good price pop these few days. But the bad news is I have t-bill maturing next week and planned to buy more TIPS if yield > 2%. Now it seems that is unlikely, not sure what I'll do with the fund.

No complaints here though. Everything is up & up and almost back to my personal high reached around Jan 2022.
by AQ
Tue Dec 12, 2023 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Job/Finance after a major illness
Replies: 9
Views: 1752

Job/Finance after a major illness

A close friend was diagnosed a type of cancer recently. He was clearly devastated by the bad news, and seriously considered quitting his job and focused on his treatment. In the past we chatted about personal investments/finance matters, so he sought me out for my reaction (from the perspective of personal finance) about whether it's a good thing to quit outright. But those questions are beyond my pay grade. My friend doesn't look very ill yet but it's clear he doesn't have the mental power to stay on his job. Both of us know a bit about those 'usual' stuff like getting cobra, POA, wills, etc. The question is that given he's decided to quit, is there anything he might get help from financially, like long-term disability benefit, SS disabili...
by AQ
Mon Dec 04, 2023 4:32 pm
Forum: Investing - Theory, News & General
Topic: Did anyone regretfully save a lot of cash before investing?
Replies: 23
Views: 4944

Re: Did anyone regretfully save a lot of cash before investing?

depending on how you define 'a lot of cash'. I have had a low stock allocation, in the range of 25% to 35% for my investment life, and regretted I didn't put more in the 'game'. Now I knew a little better but then feel maybe it's too late for me since I'm close to retirement age. So I still have 40% sitting in cash (at least they pay 5% now). The balance is longer duration bonds
by AQ
Fri Dec 01, 2023 4:10 pm
Forum: Investing - Theory, News & General
Topic: Unexpected T-bill auction
Replies: 6
Views: 1256

Re: Unexpected T-bill auction

I was trying to place an order for T-bill auction early next week. The auction schedule says Monday there are two auctions: one for 13weeks; the other for 26 weeks. But Fidelity site also lists an auction to be held on Tuesday with the cusip 912797GD3 and maturity date 1/18/2024. I guess this is a six-month t-bill re-open? What surprised me most is its term is a bit unusual: from the settlement to maturity it would make a five or six weeks T-bill. Usually we see either 4- or 8-weeks T-bill. I just want to be sure that if I place an order to participate in this auction, it's the same as other more 'regular' auction. No caveats and no surprise. Or are there something I miss? The Treasury periodically issues "cash management bills",...
by AQ
Fri Dec 01, 2023 3:38 pm
Forum: Investing - Theory, News & General
Topic: Unexpected T-bill auction
Replies: 6
Views: 1256

Unexpected T-bill auction

I was trying to place an order for T-bill auction early next week. The auction schedule says Monday there are two auctions: one for 13weeks; the other for 26 weeks. But Fidelity site also lists an auction to be held on Tuesday with the cusip 912797GD3 and maturity date 1/18/2024. I guess this is a six-month t-bill re-open? What surprised me most is its term is a bit unusual: from the settlement to maturity it would make a five or six weeks T-bill. Usually we see either 4- or 8-weeks T-bill. I just want to be sure that if I place an order to participate in this auction, it's the same as other more 'regular' auction. No caveats and no surprise. Or are there something I miss?