Search found 7127 matches

by Wagnerjb
Wed Jan 24, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Support test for college student filing Indepently
Replies: 32
Views: 1058

Re: Support test for college student filing Indepently

The problem I am having is with the support test for claiming dependent status because of timing of expenses. Payment of 2019 spring tuition in 2018. Would that qualify as example for part of the 2018 support test? Here is the general rule for Qualified Educational Expenses: Academic Period You mus...
by Wagnerjb
Wed Jan 24, 2018 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Support test for college student filing Indepently
Replies: 32
Views: 1058

Re: Support test for college student filing Indepently

Yes Andy- that is our approach if it still valid for 2018. Other than I believe the 15% capital gains rate will not apply due to the new tax law it will come from the estate tax rates The Kiddie Tax will use trust tax rates in 2018. My understanding is that trusts also have a favorable zone for LT ...
by Wagnerjb
Wed Jan 24, 2018 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Support test for college student filing Indepently
Replies: 32
Views: 1058

Re: Support test for college student filing Indepently

Because of merit scholarship he received his fall tuition payment may not be enough to meet the support test. I believe the spring 2019 tuition bill can be paid in December 18 but am not sure in terms of the support test if that counts for 2018? Even though the cash payment is made in 2018 Should i...
by Wagnerjb
Wed Jan 24, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Support test for college student filing Indepently
Replies: 32
Views: 1058

Re: Support test for college student filing Indepently

You have to report the rental income on Schedule E. Is there a legitimate way to share living expenses without it being consideeed income? If he pay the utilities directly perhaps? I am not a Tax Attorney, but I am highly skeptical that any parent in a similar situation (charging a teenager or rece...
by Wagnerjb
Wed Jan 24, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Support test for college student filing Indepently
Replies: 32
Views: 1058

Re: Support test for college student filing Indepently

an interesting article on kiddie tax: https://www.forbes.com/sites/baldwin/2013/07/24/ducking-the-kiddie-tax/#1ca02de4325f Yes, this is similar to what we are looking into. However if the support test is met with unearned income and my son is not our dependent I believe then he is also allowed to t...
by Wagnerjb
Tue Jan 23, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 67
Views: 7385

Re: Bond Portfolio for High Net Worth Individuals - Different Rules?

Because a HNWI has a lot of cushion to handle a lot of risk, I would think the percentage in stocks would be dominant no matter if young or old. Why do you say that? For a retiree with $5 million in assets and spending $200k annually, they have no more "cushion" than the guy with $500k in assets an...
by Wagnerjb
Tue Jan 23, 2018 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Advice Needed - Pension from Former Employer
Replies: 17
Views: 1339

Re: Advice Needed - Pension from Former Employer

Am I better off rolling into a pretax TIRA, converting to Roth and paying the taxes, or rolling over to Roth directly and paying the taxes? Does it matter? Are both permissible? Assume both TIRA and Roth IRA are existing Vanguard Accounts with TIRA normally carring $0 balance except for Roth conver...
by Wagnerjb
Mon Jan 22, 2018 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Another Deferred Compensation Question
Replies: 3
Views: 563

Re: Another Deferred Compensation Question

It is not considered earned income.
by Wagnerjb
Mon Jan 22, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Is Tax CPA really needed for Vanilla Investments ?
Replies: 31
Views: 2453

Re: Is Tax CPA really needed for Vanilla Investments ?

However, for a straight salary and simple investments in mutual funds/etfs, do you see any advantage of having tax return done by cpa ? ... (marginal tax rate affecting eg muni funds, tax loss harvesting). Anyone who has "straight salary and simple investments" and appreciates the words "marginal t...
by Wagnerjb
Sat Jan 20, 2018 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Advice with Appreciated Securities
Replies: 17
Views: 982

Re: Mortgage Payoff Advice with Appreciated Securities

The gain on sale is approximately $150K (cost basis is ~$175K) so the capital gains rate will be 15%. [The 15% rate for capital gains applies for total taxable income below $480K for married filing jointly.] The 18.8% rate kicks in when your AGI gets to $250k. I don't know the base income that you ...
by Wagnerjb
Sat Jan 20, 2018 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Advice with Appreciated Securities
Replies: 17
Views: 982

Re: Mortgage Payoff Advice with Appreciated Securities

I will owe federal (at 15% cap gains rate) and state tax (~3%) on the appreciated equity index fund securities. Total taxes will be $28K so my plan is to sell $328K in securities to complete the payoff. If you are already in the 22% bracket and you add ~$300k in capital gains, I am not sure you wil...
by Wagnerjb
Fri Jan 19, 2018 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 59
Views: 6311

Re: Brokered CDs - often better return secondary market

It would make sense that the secondary market would offer better returns, but I haven't seen ANY secondary market issues that come close to the new issues. For example: at TD Ameritrade, there are 3 new issues of the 5 year CD for 2.65 Coupon (one of them is a Goldman Sachs with 01-24-2023 maturity...
by Wagnerjb
Thu Jan 18, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Selling Shares of UTMA Account
Replies: 38
Views: 1830

Re: Selling Shares of UTMA Account

I just read this dicussing the kiddie tax law for 2018: The TCJA increases the standard deduction for all single taxpayers, including dependent children, to $12,000 effective 2018. Thus, children can earn a total of $12,000 in income, whether earned or unearned, without paying any tax. Does this me...
by Wagnerjb
Wed Jan 17, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased mother's Financial Advisor wants $500+ to convert to bene IRA
Replies: 31
Views: 2656

Re: Deceased mother's IRA co wants $500+ to convert to bene IRA

How large is the IRA? Would you consider taking a complete distribution?
by Wagnerjb
Tue Jan 16, 2018 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: New HSA Account
Replies: 7
Views: 639

Re: New HSA Account

Thanks Andy d) If another person makes a contribution to her HSA, she - not the other person - gets a tax deduction for that amount. So I can contribute $6900 and when we file 2018 taxes,I can add $6900 to the standard deduction of 24K as tax deductible since we file jointly? I thought you said tha...
by Wagnerjb
Tue Jan 16, 2018 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: New HSA Account
Replies: 7
Views: 639

Re: New HSA Account

Is she the only one who can make the contribution to HSA ? If yes, does it have to be from her paycheck/roll or can it be from a bank/taxable account later in the year ? She is not the only one who can contribute. Her employer can contribute. She can contribute directly to the HSA. And anyone else ...
by Wagnerjb
Tue Jan 16, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1575

Re: 529 AND UTMA

For those that have done the UTMA, logistically how do you fund the child expenses? Do you just spend throughout the year for your child, then at end of year add it up and withdraw approprate amount from UTMA? Or withdraw at beginning of year up to maximum that would be tax free then spend througho...
by Wagnerjb
Tue Jan 16, 2018 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1575

Re: 529 AND UTMA

On a separete note, I just opened up a Vanguard UTMA account online. I would like to gift shifts preserving cost basis to the UTMA account but not quite sure. I called Vanguard and the rep told me to do the "Exchange (sell to buy) Vanguard Funds" option to move the shares from my vanguard brokerage...
by Wagnerjb
Tue Jan 16, 2018 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1575

Re: 529 AND UTMA

I realize it is water under the bridge, but the purpose of this forum is to inform others as well. Not to quibble, but the valid UTMA distribution determination is not essential vs non-essential, but rather parental support obligation or not. While braces may be somewhat optional, but they are not ...
by Wagnerjb
Tue Jan 16, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1575

Re: 529 AND UTMA

Yes this is my first child. I may or may not have another. From all this discussion, it seems i can capture all the positives but none of the negatives by contributing low cost basis stocks (maybe $10-20k worth?) first couple years of his life to UTMA then rest of time will contribute to a 529. Thi...
by Wagnerjb
Mon Jan 15, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018
Replies: 11
Views: 1677

Re: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018

I just ran some numbers through it. It appears to not take into account the 3.8% Net Investment Income tax, on investment income when your income is over $250k. Other than that, it matched my spreadsheet to the penny.

Best wishes.
by Wagnerjb
Mon Jan 15, 2018 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax 2018 with respect to LTCG
Replies: 1
Views: 537

Re: Kiddie Tax 2018 with respect to LTCG

You might want to read this recent thread, where the issues you raise were discussed: https://www.bogleheads.org/forum/viewtopic.php?t=235647 Personally, I am unclear about the current $1,050 tax free threshold for the Kiddie Tax. Right now (for 2017), a child gets a $1,050 standard deduction....and...
by Wagnerjb
Sun Jan 14, 2018 8:51 pm
Forum: Investing - Theory, News & General
Topic: Tax Exempt Bond Funds - Considerations after Tax Reform
Replies: 12
Views: 2014

Re: Tax Exempt Bond Funds - Considerations after Tax Reform

One also has to be alert to the hidden marginal rates (27%) that occur below the 24% bracket for people with significant dividend and capital gain income. Can you kindly elaborate on how the 27% marginal rate comes about? I expect minimal dividends and no cap gains for 2018, but I hope to convert t...
by Wagnerjb
Sun Jan 14, 2018 12:01 pm
Forum: Investing - Theory, News & General
Topic: Tax Exempt Bond Funds - Considerations after Tax Reform
Replies: 12
Views: 2014

Re: Tax Exempt Bond Funds - Considerations after Tax Reform

One also has to be alert to the hidden marginal rates (27%) that occur below the 24% bracket for people with significant dividend and capital gain income. Can you kindly elaborate on how the 27% marginal rate comes about? I expect minimal dividends and no cap gains for 2018, but I hope to convert t...
by Wagnerjb
Sat Jan 13, 2018 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversions at 24%(CA -> WA)
Replies: 4
Views: 569

Re: Roth conversions at 24%(CA -> WA)

I think this is one of the lowest marginal tax bracket I might see in my working life and it might not stay there more than few years. I am 60 and I feel the same way. Like you, I am converting to a Roth up to the top of the 24% bracket, and I know several of my friends who are doing the same thing...
by Wagnerjb
Fri Jan 12, 2018 8:16 pm
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 44
Views: 4890

Re: Tax Reform - Revised Kiddie Tax

Andy, What is your understanding of the changes? There is standard deduction for dependents, and there are standard deductions for kiddie tax. There are two separate issues even though a dependent can also be subject to the kiddie tax. Yes, it is complicated. Huey: I am not qualified to read the ta...
by Wagnerjb
Fri Jan 12, 2018 3:45 pm
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 44
Views: 4890

Re: Tax Reform - Revised Kiddie Tax

Came across this jaw-dropper from the Nolo website. Reference: https://www.nolo.com/legal-encyclopedia/kiddie-tax-limits-shifting-unearned-30003.html "Impact of Increased Standard Deduction All taxpayers, including children, are entitled to take a standard deduction on their taxes. Any unearned inc...
by Wagnerjb
Thu Jan 11, 2018 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs Trust Tax Strategies
Replies: 5
Views: 308

Re: Special Needs Trust Tax Strategies

I help with the taxes for my brother's SNT. (Another brother is the trustee). I would not be as concerned as you are about filing a tax return for the first time, as I am in those same shoes where my brother may have to file a personal tax return (for the first time in over a decade) in a few years....
by Wagnerjb
Thu Jan 11, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 44
Views: 4890

Re: Tax Reform - Revised Kiddie Tax

For what it's worth, I stumbled upon this: https://braggfinancial.com/index.php?display=KiddieTaxUpdate It states that "In 2018, unearned income under the $2,100 Kiddie Tax threshold will continue to be taxed at the child's rate. However, as a result of the TCJA, unearned income exceeding this thre...
by Wagnerjb
Sat Jan 06, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Does all net income that doesn’t get paid out as a dividend add to a company’s equity?
Replies: 9
Views: 888

Re: Does all net income that doesn’t get paid out as a dividend add to a company’s equity?

I used to think that 100% of a company’s net income would either get paid out as dividends or add to a company’s retained earnings but I’ve realized that, in a lot of cases, some of a company’s net income just seems to disappear. Where does this additional net income go? Would paying off debt with ...
by Wagnerjb
Fri Jan 05, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: How Many Stocks Are Really Needed in Index Funds?
Replies: 52
Views: 3291

Re: How Many Stocks Are Really Needed in Index Funds?

How do you maintain a portfolio of the 50 largest stocks with zero expenses? And if you are a VHNW individual, you have people for that. More expenses. With Vanguard Flagship Services ($2 trades) you could probably get expenses down to .001% with a $1M portfolio. This approach would also open up lo...
by Wagnerjb
Fri Jan 05, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: anyone considering cashing in some 401k money at the new lower tax rate?
Replies: 9
Views: 1220

Re: anyone considering cashing in some 401k money at the new lower tax rate?

+1 How about a third possibility? Should you convert to the top of your tax bracket (or next bracket) from 401k (or via IRA) to Roth IRA? Are you older than 59.5 so there are no penalties? This is what I am doing, along with my brother and one of my close friends. I am pleasantly surprised that we ...
by Wagnerjb
Fri Jan 05, 2018 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Avoid deducting traditional IRA for backdoor roth
Replies: 5
Views: 619

Re: Avoid deducting traditional IRA for backdoor roth

Why wouldn't you just let your wife's contribution be a deductible IRA? So you reduce your income by $5500 due to her contribution and then you increase your income by $5500 by converting her IRA to a Roth. Don't you end up in the exact same position as if you had done a backdoor Roth for her? I don...
by Wagnerjb
Fri Jan 05, 2018 12:14 pm
Forum: Investing - Theory, News & General
Topic: Does all net income that doesn’t get paid out as a dividend add to a company’s equity?
Replies: 9
Views: 888

Re: Does all net income that doesn’t get paid out as a dividend add to a company’s equity?

I used to think that 100% of a company’s net income would either get paid out as dividends or add to a company’s retained earnings but I’ve realized that, in a lot of cases, some of a company’s net income just seems to disappear. Where does this additional net income go? Would paying off debt with ...
by Wagnerjb
Fri Jan 05, 2018 11:44 am
Forum: Investing - Theory, News & General
Topic: How Many Stocks Are Really Needed in Index Funds?
Replies: 52
Views: 3291

Re: How Many Stocks Are Really Needed in Index Funds?

But for the average investor, does it matter how closely you track it? How many stocks is good enough? I think after about 50 stocks you're going to track it pretty closely if you look at the top holdings: Tracking error is no big deal for investors who understand their investments and their strate...
by Wagnerjb
Fri Jan 05, 2018 11:31 am
Forum: Investing - Theory, News & General
Topic: How Many Stocks Are Really Needed in Index Funds?
Replies: 52
Views: 3291

Re: How Many Stocks Are Really Needed in Index Funds?

How many stocks are needed in an Index Fund to track Vanguard Total Stock Market Fund fairly closely? I would guess the top 50-100 stocks by market cap would closely replicate VTI. Many investors feel that fewer stocks is better , if you can choose a superior category (blue chips, dividend stocks, ...
by Wagnerjb
Thu Jan 04, 2018 9:18 pm
Forum: Investing - Theory, News & General
Topic: How Many Stocks Are Really Needed in Index Funds?
Replies: 52
Views: 3291

Re: How Many Stocks Are Really Needed in Index Funds?

The only scenario I would find this might be valuable at all is a high net worth person that wants a zero expense ratio. In a small cap fund, I somewhat understand the need for many stocks, but not in a large cap or total market fund. I used a similar strategy for about 15 years before I retired. I...
by Wagnerjb
Thu Jan 04, 2018 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking Advice To $$ Mess
Replies: 23
Views: 2526

Re: Seeking Advice To $$ Mess

Have your folks considered a reverse mortgage? I believe that would allow them to essentially spend the equity in their home. The flip side is that the value of the house won't be available as an inheritance. I have not looked into the details of a reverse mortgage, but it might be something to cons...
by Wagnerjb
Thu Jan 04, 2018 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Selling Stock within UTMA
Replies: 6
Views: 496

Re: Selling Stock within UTMA

The UTMA account is not a tax-deferred or tax-free account, so taxes will be due on any income generated in the account. The owner of the account - your son - will owe the taxes. If your son is a minor with no other income, he doesn't have to pay any income taxes if the UTMA income is an amount arou...
by Wagnerjb
Wed Jan 03, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Shares of UTMA Account
Replies: 38
Views: 1830

Re: Selling Shares of UTMA Account

This year my 21 year old son will start selling $5500 of his UTMA Account and put the money into his Roth IRA. His account is at Vanguard. He is a full time student with part time job. Makes enough to cover the Roth IRA. So, he is taking advantage of the low income bracket and will not have to pay ...
by Wagnerjb
Mon Jan 01, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Feedback and Diversifying Vested RSUs
Replies: 3
Views: 375

Re: Portfolio Feedback and Diversifying Vested RSUs

Hi Chuckit, and welcome to the Bogleheads forum. I have some thoughts on the RSU issue to offer. I see the predicament you are in with those RSUs that are already vested. They have capital gains built up, and with you in the 33% tax bracket you will be paying a high price to diversify those. But you...
by Wagnerjb
Mon Jan 01, 2018 2:10 am
Forum: Personal Finance (Not Investing)
Topic: Did you get an Unexpected Year End Bonus because of the Tax Cut?
Replies: 44
Views: 3422

Re: Did you get an Unexpected Year End Bonus because of the Tax Cut?

munemaker wrote:
Mon Jan 01, 2018 1:15 am
It is wonderful that so many companies are giving the year end bonus or wage increases in as a result of the tax cut.

I am retired so no bonus for me, but I am happy for those who did receive a bonus.
+1
by Wagnerjb
Sat Dec 30, 2017 6:14 pm
Forum: Personal Consumer Issues
Topic: How can new DAF holders support Bogleheads/ Financial literacy
Replies: 10
Views: 1026

Re: How can new DAF holders support Bogleheads/ Financial literacy

I also have a Fidelity DAF and have made donations to the Bogle Center in the past. If your employer offers matching donation funds, be sure to apply for them. That's an interesting point that I have been wondering about. Megacorp has a matching program, but I don't know if they will match contribu...
by Wagnerjb
Sat Dec 30, 2017 1:09 pm
Forum: Personal Consumer Issues
Topic: How can new DAF holders support Bogleheads/ Financial literacy
Replies: 10
Views: 1026

Re: How can new DAF holders support Bogleheads/ Financial literacy

https://boglecenter.net/ Thanks. First donation ordered. I also have a Fidelity DAF and have made donations to the Bogle Center in the past. If your employer offers matching donation funds, be sure to apply for them. I got matching funds for my donations to the Bogle Center. :D Happy New Year.
by Wagnerjb
Thu Dec 28, 2017 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation Plan (Fido Funds) Question
Replies: 2
Views: 324

Re: Deferred Compensation Plan (Fido Funds) Question

I know the NQ-DCP will be my riskiest retirement account, so does one put the riskiest, safest, or a blend of assets into it? I have used my company's NQDC plan in the past (I am now retired and drawing from the plan) and I have thought about the allocation issue. To me, it makes the most sense to ...
by Wagnerjb
Tue Dec 26, 2017 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Question regarding unvested megacorp stock shares
Replies: 4
Views: 346

Re: Question regarding unvested megacorp stock shares

Personally, I considered them in my AA even though they weren't vested. Just my opinion.
by Wagnerjb
Sun Dec 24, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Trade offs - AOT v. ACA v. new Child Tax Credit
Replies: 3
Views: 523

Re: Trade offs - AOT v. ACA v. new Child Tax Credit

I got an excellent private message from poster Flobes, who indicated that the ACA repayment penalties are capped at various levels ($300, $750, $1275) depending on your income level. Only if your income exceeds 400% of the poverty level is the repayment penalty unlimited. This great news suggests th...
by Wagnerjb
Sun Dec 24, 2017 11:07 am
Forum: Personal Consumer Issues
Topic: How much have you donated to John C Bogle Center for Financial Literacy?
Replies: 17
Views: 1897

Re: How much have you donated to John C Bogle Center for Financial Literacy?

Over the past three or four years, my donations to the Bogle Center have totaled $3,430. I have made direct donations to the Bogle Center from my Donor Advised Fund, and the figure includes matching funds from my employer.
by Wagnerjb
Sat Dec 23, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund (DAF) - Bunch Now - Easy (even easier than backdoor Roth)
Replies: 19
Views: 1573

Re: Donor Advised Fund (DAF) - Bunch Now - Easy (even easier than backdoor Roth)

And just a warning to folks to carefully consider if donating more this year offers enough benefit. If you're income is high enough, the Pease limits do peel back the benefit you get from deductions. AMT too. Aren't the Pease limits based on Adjusted Gross Income? If so, I don't see how higher dona...
by Wagnerjb
Sat Dec 23, 2017 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Trade offs - AOT v. ACA v. new Child Tax Credit
Replies: 3
Views: 523

Trade offs - AOT v. ACA v. new Child Tax Credit

Here is the situation: Son turned 26 during 2017 and is a full time student in college. For 2017 he signed up for heavily subsidized ACA medical coverage, based on my estimate of his income around $13k. The $13k comes from a summer job (~$5k), plus capital gains on gifted securities my wife and I ga...