Search found 3076 matches

by MikeG62
Thu Mar 02, 2017 9:03 pm
Forum: Personal Investments
Topic: Quick question on 529's
Replies: 8
Views: 749

Re: Quick question on 529's

Only benefit I could see to Grandma putting $70,000 into a 529 for you would be if you have children yourself or plan to have children yourself in which case you could change the beneficiaries to them in the future and use the $ to fund their college educations. I suppose you could always liquidate...
by MikeG62
Thu Mar 02, 2017 8:33 pm
Forum: Personal Investments
Topic: Quick question on 529's
Replies: 8
Views: 749

Re: Quick question on 529's

Only benefit I could see to Grandma putting $70,000 into a 529 for you would be if you have children yourself or plan to have children yourself in which case you could change the beneficiaries to them in the future and use the $ to fund their college educations. I suppose you could always liquidate ...
by MikeG62
Thu Mar 02, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Bypass Trust - should capital gains be distributed?
Replies: 16
Views: 2036

Re: Bypass Trust - should capital gains be distributed?

Bruce is the clear expert here. So hopefully he will respond. In advance of his commenting, the general idea should be to get as much of the trust income out of the trust and onto your individual return as you can. The reason being that trust income tax rates rise much faster than individual income ...
by MikeG62
Thu Mar 02, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: RSU + Autosale for taxes
Replies: 17
Views: 2762

Re: RSU + Autosale for taxes

Thanks for the help everyone, this did clarify somethings and result in a normal return. ...I do need to enter the 1099-B because my employer does not sell the shares, Morgan Stanley does. It takes MS several days so there is always some small loss or gain on the stocks. There is vesting event, and...
by MikeG62
Thu Mar 02, 2017 8:12 am
Forum: Personal Finance (Not Investing)
Topic: RSU + Autosale for taxes
Replies: 17
Views: 2762

Re: RSU + Autosale for taxes

Without more information it is hard to tell for sure, but my gut tells me those refund figures are way too high. The only way I could see you ending with that result is if you are having taxes "grossly overwithheld" on your income - and not because you claim married with zero deductions, but you'd h...
by MikeG62
Wed Mar 01, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Question for Retired Members--life mistakes
Replies: 64
Views: 11464

Re: Question for Retired Members--life mistakes

1) Off the top of your head, what was the biggest mistake(s) you make with regard to your retirement when you were young, and when you were in your 50's. Wish I had invested a greater % of assets in equities along the way. More specifically, in my 20's and 30's should have been 100% in equities. I ...
by MikeG62
Wed Mar 01, 2017 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Filing 1040X....Again?
Replies: 10
Views: 871

Re: Filing 1040X....Again?

I dunno, but I file before I get the 1099's, because I can predict to the penny what the 1099s will be and can use the previous year to fill out the boxes correctly. =) For most people this is really hard (impossible) to do as you don't really know the split between qualified and non-qualified divi...
by MikeG62
Wed Mar 01, 2017 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Filing 1040X....Again?
Replies: 10
Views: 871

Re: Filing 1040X....Again?

You should know which accounts you have that would give rise to 1099's and should not file any return until you have the 1099's so you can include the numbers in your return. I'd suggest preparing a simple one page list of the accounts for which you expect to get 1099's and put it in the folder wher...
by MikeG62
Wed Mar 01, 2017 8:48 am
Forum: Personal Investments
Topic: TRP "Fee Credits" [T. Rowe Price]
Replies: 8
Views: 1519

Re: TRP "Fee Credits" [T. Rowe Price]

I've received a Plan and Investment Disclosure for my 401k from T Rowe Price. Included is a separate piece of paper which says TRP "provides fee credits to your plan in recognition of the fees TRP RPS and its affiliates receive for providing recordkeeping and shareholder services to your Plan's inv...
by MikeG62
Fri Feb 24, 2017 9:11 am
Forum: Personal Investments
Topic: Merrill Lynch Fees
Replies: 6
Views: 1238

Re: Merrill Lynch Fees

bsteiner wrote:...Perhaps not enough people with under $1 million were willing to pay 2.7% a year, so they lowered it to 2.2% to attract more people.
Yeah, so benevolent of them, when people have options like VG and pay 30bps annually :wink:
by MikeG62
Fri Feb 24, 2017 8:16 am
Forum: Personal Investments
Topic: Merrill Lynch Fees
Replies: 6
Views: 1238

Merrill Lynch Fees

Came upon this article in today's WSJ: https://www.wsj.com/articles/merrill-lynch-cuts-maximum-advisory-fee-for-smaller-clients-1487891496 For those who can't access the article, here is a quote which rook my breath away: "For clients who have just under $1 million in assets with Merrill and pay a f...
by MikeG62
Wed Feb 22, 2017 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Portability and the Generation Skipping Transfer Tax (GST)
Replies: 11
Views: 1668

Re: Portability and the Generation Skipping Transfer Tax (GST)

...New Jersey recently enacted the Uniform Trust Code, and under N.J.S.A. 3B:31-38, a beneficiary is protected against creditors even if there's a standard for distributions, and even if the beneficiary is the sole trustee. In the divorce context, while the facts were somewhat less than clear, the ...
by MikeG62
Wed Feb 22, 2017 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Portability and the Generation Skipping Transfer Tax (GST)
Replies: 11
Views: 1668

Re: Portability and the Generation Skipping Transfer Tax (GST)

...It's when the beneficiary exercises his/her power to remove and replace his/her co-trustee that the replacement trustee has to be independent (not related or subordinate within the meaning of Section 672(c)) so as to fall within the corollary to Revenue Ruling 95-58 so as to avoid estate tax exc...
by MikeG62
Tue Feb 21, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Portability and the Generation Skipping Transfer Tax (GST)
Replies: 11
Views: 1668

Re: Portability and the Generation Skipping Transfer Tax (GST)

Bruce, Your depth of knowledge and perspective in this area is incredibly helpful. Thank you! All your comments provide good additional food for thought. I have one immediate question on the selection of a co-trustee. I thought with Beneficiary Controlled Asset Protection Trusts, the co-trustee had ...
by MikeG62
Tue Feb 21, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred compensation plan default risk
Replies: 20
Views: 3035

Re: Deferred compensation plan default risk

In some plans, one has the option when enrolling whether to take a lump sum upon "change in control." MikeG62's example shows one consequence of electing that option. Caveat deferrer . My employer's plan had no such choice/option. The choice was how you wanted to take distributions and when (and ov...
by MikeG62
Tue Feb 21, 2017 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Portability and the Generation Skipping Transfer Tax (GST)
Replies: 11
Views: 1668

Re: Portability and the Generation Skipping Transfer Tax (GST)

Eric is correct that the predeceased child exception lets the predeceased child's share go to his/her children free of GST tax. However, this plan throws the entire amount into the estates of the surviving child and the predeceased child's children. Bruce, very happy you replied as your input is al...
by MikeG62
Tue Feb 21, 2017 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Portability and the Generation Skipping Transfer Tax (GST)
Replies: 11
Views: 1668

Re: Portability and the Generation Skipping Transfer Tax (GST)

Generally, if your child dies before you do, his or her children move up a generation (with respect to you). So you can make gifts or bequests to them without incurring GSTT. Eric, Thank you for pointing that out. I did not know this was the case. It removes one worry for me about portability. Mike
by MikeG62
Tue Feb 21, 2017 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred compensation plan default risk
Replies: 20
Views: 3035

Re: Deferred compensation plan default risk

Let me add another risk you may not be thinking about, but happened to me in 2015. I had deferred several hundred thousand dollars into my employers deferred compensation plan. Never even considered this could/would happen. Employer got acquired in 2015 and entire balance in deferred compensation pl...
by MikeG62
Tue Feb 21, 2017 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Portability and the Generation Skipping Transfer Tax (GST)
Replies: 11
Views: 1668

Portability and the Generation Skipping Transfer Tax (GST)

It is my understanding that under current estate tax law, the ported estate tax exemption amount of the first to die spouse (DSUE) cannot be used to shield any GST resulting from the passing of assets to directly to grandchildren. I am wondering if there is a planning opportunity that might allow fu...
by MikeG62
Sun Feb 19, 2017 11:13 am
Forum: Personal Investments
Topic: If you were going to drop down to 15% bracket for one year...
Replies: 7
Views: 1428

Re: If you were going to drop down to 15% bracket for one year...

Michael Kitces did an excellent job discussing this situation in the following blog post

https://www.kitces.com/blog/understandi ... qus_thread
by MikeG62
Tue Feb 14, 2017 8:07 am
Forum: Personal Investments
Topic: Cannot reply to PMs
Replies: 5
Views: 784

Re: Cannot reply to PMs

cherijoh wrote:The system is a little weird. I believe the PM sits in your outbox until the intended recipient picks up the message. How long has it been since you sent the message?
Exactly what I was told when I asked the question of a site administrator.
by MikeG62
Wed Feb 08, 2017 10:26 pm
Forum: Personal Investments
Topic: How bad is FTSE ex-US small cap in taxable?
Replies: 26
Views: 3090

Re: How bad is FTSE ex-US small cap in taxable?

FWIW, I use IEUS in a taxable account for exposure to European Small Cap stocks and it's been very tax efficient (>90% of dividends are qualified). Now it's not as broad as the fund you are targeting, but there is a fair bit of overlap. I suppose you could then add an EM fund/ETF (like VWO or EEM) a...
by MikeG62
Mon Feb 06, 2017 9:19 pm
Forum: Personal Investments
Topic: Newbie asks-should I put sell limits on my portfolio?
Replies: 18
Views: 1544

Re: Newbie asks-should I put sell limits on my portfolio?

...so that if the #*@% hits the fan, and the markets starts to drop majorly, at least my stocks will sell automatically at a certain price that I set, instead of losing a whole lot if it goes waaaaay down. First, totally agree with what the others have said. Just wanted to make the point that a sel...
by MikeG62
Mon Jan 30, 2017 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund options
Replies: 23
Views: 4250

Re: Doner Advised Fund options

I opened my DAF with Fidelity last year using appreciated stock. Very smooth and simple. Already making contributions and those have been smooth as well.
by MikeG62
Sat Jan 28, 2017 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Should my spouse sell her long term-held company stock to pay mortgage down so we can refinance at a lower rate?
Replies: 20
Views: 2639

Re: Should my spouse sell her long term-held company stock to pay mortgage down so we can refinance at a lower rate?

Most of the stock options that my wife hasn't exercised won't expire for at least a couple of more years. However, between 1,500 and 2,000 of the not yet-exercised options will expire shortly. She could do a same-day exercise and sale, but she would then have to pay tax on the gain as regular incom...
by MikeG62
Fri Jan 27, 2017 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Shelter Trusts in the Era of Portability
Replies: 14
Views: 2207

Re: Credit Shelter Trusts in the Era of Portability

You are correct that you only get the DSUE (the portability amount) from your last deceased spouse. So if you remarry someone with assets, and your new spouse then dies and leaves his/her estate to his/her children, you lose your DSUE. However, you can use it to make gifts while your new spouse is ...
by MikeG62
Fri Jan 27, 2017 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Credit Shelter Trusts in the Era of Portability
Replies: 14
Views: 2207

Re: Credit Shelter Trusts in the Era of Portability

I know this doesn't apply to many, but I am wondering about the pros and cons of Credit Shelter Trusts ("Bypass Trusts) versus using "portability" for high net worth couples. In particular, I am wondering what happens if a surviving spouse gets remarried who used portability when the first spouse d...
by MikeG62
Thu Jan 26, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Should my spouse sell her long term-held company stock to pay mortgage down so we can refinance at a lower rate?
Replies: 20
Views: 2639

Re: Should my spouse sell her long term-held company stock to pay mortgage down so we can refinance at a lower rate?

She is an officer in a publicly traded company. Typically, she will have to report her transactions to the SEC and they will be publicly disclosed. There is no way for us to know how that will be interpreted or how her company's internal politics work. It could impact her perception at work. If pos...
by MikeG62
Mon Jan 23, 2017 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance questions and help
Replies: 19
Views: 4607

Re: Umbrella insurance questions and help

I bought my first personal liability insurance policy >20 years ago at $1 million. Increased it to $2 million maybe 5-8 years later as my net worth increased. I increased it again to $5 million maybe 5 years ago. It does not cover my net worth, but it was the largest amount I could get that I felt w...
by MikeG62
Sun Jan 22, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Changing FICO Score
Replies: 42
Views: 5770

Re: Changing FICO Score

Reduced FICO score likely due to lack of revolving credit (no mortgage or loans). I know that is the case with me. My score used to be 830-840, but in the last few years has declined to 800-810 (I paid off my mortgage several years ago and have no other outstanding loans - have not had any in years)...
by MikeG62
Tue Jan 17, 2017 8:58 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA for High Net Worth Parents?
Replies: 71
Views: 10355

Re: FAFSA for High Net Worth Parents?

We filled out FAFSA for freshman year, but never again. +1. Did the same for my first daughter. Never bothered again after that nor did I fill one out again when my second daughter went to school. As I recall, the form at the time asked for $ amount of our assets, but only allowed an entry up to $9...
by MikeG62
Tue Jan 17, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k
Replies: 16
Views: 1652

Re: Solo 401k

I opened a solo 401k with Fidelity last week actually. I had discussed with them late last year the exact question you are asking - can I open it in advance of funding just to get that part out of the way and then fund or start funding it later. They said no (may be Fidelity's own policy) as the acc...
by MikeG62
Sun Jan 15, 2017 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Health insurance and LLC
Replies: 10
Views: 2990

Re: Health insurance and LLC

The question is whether the policy is issued in the name of the insured, or their business. That link seems to imply COBRA policies are issued in the name of the former employer, not the self-insured's business and are NOT deductible against SE income. The jury is still out. After researching this ...
by MikeG62
Sun Jan 15, 2017 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Health insurance and LLC
Replies: 10
Views: 2990

Re: Health insurance and LLC

One relevant point I did discover, however, is that a COBRA plan is not deductible for self-employed. See https://ttlc.intuit.com/questions/1935899-deductibility-of-cobra-premiums-for-self-employed. Please read more than the first answer to the question (in that link), which was wrong. The cost "is...
by MikeG62
Sat Jan 14, 2017 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Opening Ally Bank Acct - Q's
Replies: 4
Views: 877

Re: Opening Ally Bank Acct - Q's

Been using Ally for over a decade now. Very happy with the company and their service (and competitive rates). With regard to the OP's second question, transfer speeds are as quick as any other bank I use (usually 2-3 days). I did receive a communication from Ally last month indicating that most ACH'...
by MikeG62
Sat Jan 14, 2017 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Receipts [Retaining purchase receipts]
Replies: 28
Views: 2272

Re: Receipts

Unless it is a significant purchase, I shred the receipts as soon as I get home. I've never had an issue being charged more for something than I signed for at the register. It just feels like a lot of brain damage to hold on to and vouch all those receipts to the cc statements each month (I do revie...
by MikeG62
Sat Jan 14, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Rewards Visa 2% cash back
Replies: 73
Views: 17983

Re: Fidelity Rewards Visa 2% cash back

I've been using the Fidelity 2% cash back card (and it's predecessor) for several years at least. Never had a problem with either. It's my main card and I charge everything here unless I can get a higher reward on one of my other cards: Discover/Chase - rotating 5% categories Amazon VISA - 5% on al...
by MikeG62
Sat Jan 14, 2017 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Help with taxes
Replies: 27
Views: 3114

Re: Help with taxes

My apologies, I stand corrected, JW-Retired is right (I had looked at the wrong table and thought your income exceeded the cap preventing you from being able to make an IRA contribution). Scrap my suggestion on the solo 401K and instead just use the traditional IRA - you can do that still for 2016. ...
by MikeG62
Sat Jan 14, 2017 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Help with taxes
Replies: 27
Views: 3114

Re: Help with taxes

Unfortunately I have no ideas to meaningfully lower your Federal tax liability at this point (2016 being over). Based upon the info you supplied, it looks to me you are closer to $6K light (including self employment tax on your 1099 income). This assumes you won't incur a penalty for underwithholdin...
by MikeG62
Sat Jan 14, 2017 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Rewards Visa 2% cash back
Replies: 73
Views: 17983

Re: Fidelity Rewards Visa 2% cash back

I've been using the Fidelity 2% cash back card (and it's predecessor) for several years at least. Never had a problem with either. It's my main card and I charge everything here unless I can get a higher reward on one of my other cards: Discover/Chase - rotating 5% categories Amazon VISA - 5% on all...
by MikeG62
Fri Jan 13, 2017 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 3531

Re: Integrating American Opportunity Tax Credit and 529 Withdrawals

Wagnerjb wrote:This doesn't specify that the distribution must be made in the same year.


Best wishes.
I think there are risks to matching withdrawals in one year to expenses in another - read here...

viewtopic.php?f=2&t=207622&p=3184018#p3184018
by MikeG62
Fri Jan 13, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 3531

Re: Integrating American Opportunity Tax Credit and 529 Withdrawals

I have no particular reason to suggest changing beneficiary to oneself, so leaving beneficiary as child would be OK. I am not sure, but don't some 529 plans have some restrictions on age of beneficiary if not oneself? While certainly not authoritative, this article seems to suggest there is no age ...
by MikeG62
Fri Jan 13, 2017 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 3531

Re: Integrating American Opportunity Tax Credit and 529 Withdrawals

I've never seen anything that discouraged this, so I'm curious what you've been reading.[/b] Most things I have read talking about withdrawing funds from a 529 account usually contain a section which cautions against withdrawing more $ than your QHEE. I don't recall seeing anything which goes at th...
by MikeG62
Fri Jan 13, 2017 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 3531

Re: Integrating American Opportunity Tax Credit and 529 Withdrawals

There has been discussion of folks with overfunded 529 plans of changing the beneficiary to themselves to keep the plans going in expectation of future grandkids and then changing to those beneficiaries. First, let me thank you livesoft for responding to my note (a few times actually). Your credibi...
by MikeG62
Fri Jan 13, 2017 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 3531

Re: Integrating American Opportunity Tax Credit and 529 Withdrawals

Teen persuasion Thanks for the reply. I did see chapter 8 of pub 970. The shortcoming in the example is it highlights the tax impact in isolation and one might think, geez I had better avoid this tax. However, bringing in the value of the AOTC into the equation (as I did in my example) it leads one ...
by MikeG62
Fri Jan 13, 2017 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 3531

Integrating American Opportunity Tax Credit and 529 Withdrawals

I think in my situation it makes sense to pay tuition with 529 funds “and” take the AOTC at the same time. However, since most everything I have read seems to discourage this, I wanted to pressure test my thinking with the folks on this board to ensure I have not missed something or am looking at th...
by MikeG62
Thu Jan 12, 2017 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Chasing bank opening rewards
Replies: 6
Views: 1040

Re: Chasing bank opening rewards

I'm all for chasing rewards and bonuses on credit cards (have done in many times with much success). While I have considered chasing them by opening bank accounts, I have decided it is just not worth the effort. Having money spread around all over the place to pick up some crumbs just seem like a br...
by MikeG62
Wed Jan 11, 2017 12:33 pm
Forum: Personal Investments
Topic: $600,000. Now what?
Replies: 55
Views: 12600

Re: $600,000. Now what?

OP, What you are describing is a very unsustainable approach to finance where you have A.) been lucky enough to invest solely through a tremendous bull market run and, on top of that, B.) managed to make some extremely successful stock picks (through sheer luck) which has left you in a really great...
by MikeG62
Tue Jan 10, 2017 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Considering the services of a CFP
Replies: 36
Views: 3067

Re: Considering the services of a CFP

One of the things I don't under stand is "Draw Down" rate. Using an online Portfolio Backtest program I can plug the ticker symbols, percent of mix, starting balance, rebalance period and other information into the test form. I can select Monte Carlo as well and historical time span I wish to test ...
by MikeG62
Sun Jan 08, 2017 11:26 am
Forum: Personal Investments
Topic: Does your IPS or AA include MLPs?
Replies: 3
Views: 521

Re: Does your IPS or AA include MLPs?

My IPS does not include a provision for MLP's. FWIW, the vast majority of my assets are in taxable accounts and I use more than the "three fund approach" so my IPS is broader than might be the case for others on this forum. Although slightly off topic, I use index based ETF's as the cornerstone of m...