Search found 178 matches

by gassert
Sat Jan 05, 2008 8:20 am
Forum: Personal Investments
Topic: New ROTH IRA for a Retired Person
Replies: 7
Views: 1691

Umm, let's see. Either put $5k in the bank and earn taxable interest, or put $5k in the Roth and earn tax free (and higher) interest. I dont think much analysis needs to be done to figure this one out. Whether or not the Roth is invested in something other than cash/mmkt, it a totaly different quest...
by gassert
Fri Jan 04, 2008 2:05 pm
Forum: Personal Investments
Topic: Do you think I should refinance?
Replies: 15
Views: 3384

First - student loan interest is an above the line deduction, so you receive a tax break regardless of whether or not you itemize or take the standard deduciton. I'm not answering your question, but making sure you are doing the correct calculation Second - you may or may not get a new loan for less...
by gassert
Wed Jan 02, 2008 10:50 pm
Forum: Investing - Theory, News & General
Topic: Real Estate Fund Question
Replies: 22
Views: 4198

Leverage is not the only issue. In fact, it just may be a small issue. The other issue is that REITs, like CEFs, are subject to investor setiment and can be over/under valued depending on market activity. It was said that this premium or discount is a leading indicator, which I guess could be true, ...
by gassert
Wed Jan 02, 2008 4:32 pm
Forum: Personal Investments
Topic: rollover IRA contribution question
Replies: 23
Views: 4080

Its rare that an employer plan would not allow rollovers of IRAs into the plan - regarldess of the source of the original contributions. Unless you have a cost basis on your contributory IRA, I see no reason they need not be combined. Personal preference, I supose.
by gassert
Sun Dec 09, 2007 11:14 am
Forum: Personal Investments
Topic: IRAS and estate taxes
Replies: 34
Views: 5791

skywolf Your strong statement "this is false" Is not only rude, but it's inaccurate. Youre example is true for the next 22 days. So I'll wait 23 as tell you that your example is false. Silly. At least make an intelligent argument. First, yes this year $2M exeption. Duh. And then it changes...
by gassert
Sat Dec 08, 2007 3:34 pm
Forum: Personal Investments
Topic: IRAS and estate taxes
Replies: 34
Views: 5791

There is absolutely zero difference inheriting an IRA or non-qualified account (exaggeration a bit, but still the point). You have two issues. The taxation of the investment, and estate taxes. They are completely unrelated (though compounded are big numbers like the one someone is scaring you with) ...
by gassert
Sat Dec 08, 2007 3:20 pm
Forum: Personal Investments
Topic: IRAS for young kids
Replies: 10
Views: 1998

Easiest income for kids that young is modeling. (Not that that's easy, but it's the most common). I'm sure your kids are cute. So there's your answer
by gassert
Thu Dec 06, 2007 1:25 pm
Forum: Personal Investments
Topic: 457 and 403(b)
Replies: 18
Views: 4108

Public 457b plans are not subject to creditors. The money is yours. This is different than private 457 plans. Generally: 403b is good because you can take $ out while still working if over 59.5. You can also probably take a loan against it. 457b is good because you can take the money out at any age ...
by gassert
Wed Dec 05, 2007 5:39 pm
Forum: Personal Investments
Topic: State Defined Benefit Plan question
Replies: 9
Views: 2250

If you are actually buying back years of service (ie, you cashed out some years long ago for example), years when the employer would have contriuted to the plan, then 99.9% of the time you are FAR better off buying back the years than would would be investing the money on your own. The simple reason...
by gassert
Mon Dec 03, 2007 10:58 pm
Forum: Personal Investments
Topic: Tax Itemization
Replies: 5
Views: 1286

So - how do you calculate your state tax - is it what you paid (easy, or what you owe (harder - because you have to extraplote b/c state tax is figured after fed tax and therefore do onw, then the other, then the other, etc)
by gassert
Mon Dec 03, 2007 10:57 pm
Forum: Personal Investments
Topic: Tax Itemization
Replies: 5
Views: 1286

LH - thanks When I have done my taxes the last couple years via turbo tax, they calculated that the standard deduction was larger, but when I figured out the state tax amount plus my charitable contributions (we have favored renting a home for several years - no interest ded), the charity + state pu...
by gassert
Mon Dec 03, 2007 5:03 pm
Forum: Personal Investments
Topic: Tax Itemization
Replies: 5
Views: 1286

Tax Itemization

If I itemize taxes, state tax payments are deductible. Is only the amount that I paid out of pocket during that year deductible? Ie - if I paid $5k in Apr 2007 to settle what I owed on my 2006 taxes, then that $5k is deductible, but NOT the other $5k that was witheld from my paycheck in 2007. This i...
by gassert
Wed Nov 28, 2007 2:51 pm
Forum: Personal Investments
Topic: MRDs and multiple plans
Replies: 6
Views: 1723

No I don't, but I just googled "403b RMD calculation" and there were lots of results.

Aggregation is not allowed for "qualified" plans, but 403bs are not qualified plans (per IRS definitions)
by gassert
Tue Nov 27, 2007 10:46 pm
Forum: Personal Investments
Topic: Bonds in Ira s /Conversion to Roth
Replies: 8
Views: 2208

Generally, the decision is not very complicated - will you pay higher or lower taxes today on the conversion than your kids will at their tax rates over their life expectancy? Ie - if you pay tax at 15% today and you expect your kids to pay at 25%, then you are better off converting and paying. - or...
by gassert
Tue Nov 27, 2007 10:34 am
Forum: Personal Investments
Topic: MRDs and multiple plans
Replies: 6
Views: 1723

IRAs can be combined and the distribution made from one of them.

and

403bs can be combined and the distribution made from one of them.

but

IRAs and 403b can't be combined for this calculation.
by gassert
Tue Nov 20, 2007 5:20 pm
Forum: Investing - Theory, News & General
Topic: How does one avoid inheritance taxes?
Replies: 31
Views: 5988

Really, there is a lot you can do with Trusts of all types. But, IMO, the very best strategty to avoid estate taxes (dont forget about state estate tax) is very clearly gifting. And it's often the least used because the donor typically wants to control the funds, or wants it to be available for thei...
by gassert
Fri Nov 16, 2007 4:38 pm
Forum: Personal Investments
Topic: Transfer Stocks to SEP-IRA
Replies: 1
Views: 1224

No. Cash only
by gassert
Wed Nov 14, 2007 1:52 pm
Forum: Investing - Theory, News & General
Topic: High Yield Savings Vs. Vanguard Prime MMF
Replies: 12
Views: 4551

Where do you think the prime money market yield will "land"?? Meaning, that they have been dropping since the fed cuts because they purchase - for example - 60 day tbills. And therefore the yield may not "catch up" to the fed yield for a couple months (not considering fed rate ch...
by gassert
Wed Nov 14, 2007 1:42 pm
Forum: Personal Investments
Topic: Help with stock in 401k NUA?
Replies: 3
Views: 1273

NUA, is likely a great idea in this case, but there are tradeoffs. Bascially, he transfers the $1M to a taxable account in kind and the cost basis is taxable as an ordinary distribution (ie, $100k is cost basis, then $1M distribution give you $100k taxable event. However, the issue is that you still...
by gassert
Tue Nov 13, 2007 10:24 am
Forum: Personal Investments
Topic: 403b grandfathered amounts
Replies: 2
Views: 1037

[deleted]
by gassert
Tue Nov 13, 2007 10:23 am
Forum: Personal Investments
Topic: Buy a REIT stock now in taxible account or wait for Roth?
Replies: 10
Views: 2289

Well my man - sounds like you are smart enough to make the decision yourself and smart enough to know what the responses will be here. So why post the question in the first place if you are going to have an attitiude when you receive the responses you probably expected in the first place? That's the...
by gassert
Mon Nov 12, 2007 9:09 pm
Forum: Personal Investments
Topic: Buy a REIT stock now in taxible account or wait for Roth?
Replies: 10
Views: 2289

There is ZERO reason to but a single REiT stock. You are subject to non-systemic risk - even in this category. IF the REIT is undervalued, you need to ask yourself why, and what do you know that the rest of the market knows? (the answer is nothing - you dont know anything that isn't already factored...
by gassert
Mon Nov 12, 2007 8:55 pm
Forum: Investing - Theory, News & General
Topic: How do you know you are in a bubble?
Replies: 34
Views: 7118

It is not just about looking at a PE range. If you look back 30 years ago, noone was talking about PE, and therefore it was not an indicator. We talk about PE as though that's THE measure. 30 years ago, people would do studies and they would show that when the dividend yield was x%, then such and su...
by gassert
Mon Nov 12, 2007 6:19 pm
Forum: Personal Investments
Topic: 403b grandfathered amounts
Replies: 2
Views: 1037

403b grandfathered amounts

Can anyone link to the IRS website where it describes the ability to exclude grandfathered 403b amounts from the RMD calculation until age 75? Specifically, I am wondering the year the grandfathered amounts are included in the calc. It appears from other sources, that the year you attain 75 is the f...
by gassert
Sat Nov 10, 2007 4:21 pm
Forum: Personal Investments
Topic: How can I fix this mistake?
Replies: 24
Views: 4868

It's not an issue for this person - so I dont want to start a fight - but I dont know where you get your information about tot stock to VTI being a wash sale. There is NO way. The'yre NOT different share classes of the same fund. One is an open fund, one is a closed end fund. They have different exp...
by gassert
Fri Nov 09, 2007 10:07 pm
Forum: Personal Investments
Topic: How to help Dad escape bad ML broker
Replies: 19
Views: 4144

al

if you are thinking financial - you are btter off holding and inheriting.

if you are thinking about cleaning up his portfolio - just bite the bullet and sell and start fresh.
by gassert
Fri Nov 09, 2007 10:03 pm
Forum: Personal Investments
Topic: How can I fix this mistake?
Replies: 24
Views: 4868

springman is wrong - you are not subject to a wash sale if you sell vtsmx and buy vti. Wrong, wrong.

I know that's not really your question, but I just want to clarify.
by gassert
Fri Nov 09, 2007 8:56 pm
Forum: Personal Investments
Topic: How to help Dad escape bad ML broker
Replies: 19
Views: 4144

Al Not considering the wisdom of the original investment - I wouldnt think there is much difference in selling the munis at ML or VG. As you know the commission is nothing, but the spread (largely determined by the market) is another. I spent time as a ML broker. And I didnt make any money if someon...
by gassert
Wed Nov 07, 2007 8:50 pm
Forum: Personal Investments
Topic: Social Security
Replies: 10
Views: 2913

.

SS - Your comments and my interpretation of the quote are opposite. Because it says: A "grace year" is a year you receive your full benefit amount for any non-service month... Well, we are not talking about "full benefit" because we are talking about a reduced age 62 benefit, so ...
by gassert
Wed Nov 07, 2007 8:44 pm
Forum: Personal Investments
Topic: Inherited IRAs
Replies: 9
Views: 2491

Karl - unfortunate to learn first hand, but thanks for your insight. This confirms what I had thought.

GG
by gassert
Wed Nov 07, 2007 4:18 pm
Forum: Personal Investments
Topic: Social Security
Replies: 10
Views: 2913

Thanks for the clarity on the fact that benefits are "deferred". I did know that was the case (though I dont know the "details", but when planning income it's as though it's "lost" because you are planning on certain income levels,e tc. Netsak - You are saying that at a...
by gassert
Wed Nov 07, 2007 12:47 pm
Forum: Personal Investments
Topic: Inherited IRAs
Replies: 9
Views: 2491

Well, it's still not completely clear. But basically the answer seems to be - yes it can be inherited, but the distributions need to be as fast as I would have taken them (my LE) Or, if I disclaim it, then it can be passed (to the contingent beny? Is that how it ended up with your daughter) Slots qu...
by gassert
Wed Nov 07, 2007 10:28 am
Forum: Personal Investments
Topic: Inherited IRAs
Replies: 9
Views: 2491

Inherited IRAs

If I inherit an IRA from a parent and then I pass away, does my child have the same option to continue to hold an inherited inhertied IRA and draw RMDs over his/her life expectancy? Or is this limited to 1 generation?

GG
by gassert
Wed Nov 07, 2007 10:27 am
Forum: Personal Investments
Topic: Social Security
Replies: 10
Views: 2913

Social Security

Would someone confirm that my understanding is correct. If I turn 62 mid year and retire and earn no more income, then the income i earned the first half of the year is part of the formula for calculating if benefits would be reduced (ie - income over $13k reduces SS benefit $1 for every $2 earned o...
by gassert
Sun Nov 04, 2007 11:35 am
Forum: Personal Investments
Topic: 529 Plan as part of AA
Replies: 11
Views: 3177

Niko - I'd say most people on the board are split on this. One group will include 529s in teh overall AA because they will be paying for college with other money also - so theres little difference between the pots of money other than tax codes. Myself - am on the other side. Whatever is in the 529 f...
by gassert
Sun Nov 04, 2007 9:56 am
Forum: Personal Investments
Topic: Annuity for Child
Replies: 9
Views: 2508

Theres no tax problem with that advice - not any more so than any other asset that goes to kids or grandkids. The estate is still subject to state and fed exclusions. Its not like hes putting it into a GST. This is the best way for sure. OPen a taxable TSM fund in your name. And if you want, have a ...
by gassert
Sat Nov 03, 2007 4:42 pm
Forum: Personal Investments
Topic: International allocation
Replies: 9
Views: 1820

What are those asset classes?
by gassert
Sat Nov 03, 2007 3:54 pm
Forum: Personal Investments
Topic: International allocation
Replies: 9
Views: 1820

Bob- i know that EM is NOT SC, it's LC. I am just saying that I own a higher percentage than the natual market weight in SC US, and since I am trying to stay as risky as possible, I own higher than the market wieght of EM in the global market. In fact almost all US investors own higher percentage to...
by gassert
Sat Nov 03, 2007 3:31 pm
Forum: Personal Investments
Topic: International allocation
Replies: 9
Views: 1820

Thanks for the replies Yes, I know that tot int'l has a weighting to EM. I already factored that into my numbers. I dont have a major problem holding higher than market weight in EM, that's what I do in us stocks - hold high levels of SC. However my posting this I am attempting to rethink the intern...
by gassert
Sat Nov 03, 2007 2:45 pm
Forum: Personal Investments
Topic: International allocation
Replies: 9
Views: 1820

International allocation

I am looking at my international allocations. My goal has been to work toward a 50/50 US/INTL split. (Though I count REITs seperately, so technically I am >50% US - fine). I have only been using new contributions to get to the 50/50 so I am currently moving slowly - Right now I stand at about 65/35,...
by gassert
Thu Nov 01, 2007 12:32 pm
Forum: Personal Investments
Topic: Paying capital gains taxes to switch to index funds
Replies: 39
Views: 7766

Al

i guess you're right, but not sure "why"
by gassert
Thu Nov 01, 2007 12:00 pm
Forum: Personal Investments
Topic: Paying capital gains taxes to switch to index funds
Replies: 39
Views: 7766

Ted - Finally some comes up with the "right" answer. There is no difference in tax liability if someone sells now or later considering the old and new funds are the same. And if the new fund is better, then the SOONER the switch is made the better. So waiting only makes it worse. Also, con...
by gassert
Wed Oct 31, 2007 3:56 pm
Forum: Personal Investments
Topic: rollover question
Replies: 9
Views: 1938

kenschmidt wrote: You probably only want to roll into an existing Vanguard IRA of the same type. For example, if the original annuity ira is part of a employer sponsored retirement plan, you'd probably NOT want to roll it into your personal IRA. Although you CAN do this, it is considered "co-m...
by gassert
Wed Oct 31, 2007 1:14 pm
Forum: Personal Investments
Topic: rollover question
Replies: 9
Views: 1938

There are 2 issues. First, what type of account is it? Is it an IRA? If yes, then you can "roll" to any other IRA with any other company or to an employer 401k/403b/etc and there is NO 10% IRS penalty or taxes due. If it's NOT an IRA, then it can only be transfered to a like product (mutua...
by gassert
Tue Oct 30, 2007 4:47 pm
Forum: Personal Investments
Topic: 401k question
Replies: 3
Views: 993

Yes, absolutely.
by gassert
Tue Oct 30, 2007 4:46 pm
Forum: Personal Investments
Topic: Positives/Negatives of 403 b annuities
Replies: 16
Views: 4917

If the account is managed by tiaa cref, your friend has one of the top 3 or 4 out of 100s of companies that are in the 403b business. She should call the company and talk about the plan.
by gassert
Sat Oct 27, 2007 12:40 pm
Forum: Personal Investments
Topic: Investing to purchase a home
Replies: 2
Views: 981

A quick reply:

Use the Roth if you're not currently maxing it out for retirement. You may want to open a seperate Roth for your own recordkeeping. There is ZERO disadvantage to this over a txable account given the scenario.

GG
by gassert
Thu Oct 25, 2007 2:47 pm
Forum: Investing - Theory, News & General
Topic: Making your Estate the Beneficiary
Replies: 11
Views: 2607

Chaz,

Actually in 2010 the cap gains step up on non-qualified assets is gone, so you probably want to die in 2009 when it's still in place and the federal exemption is $3.5M.

But - better to avoid either year, IMO!
by gassert
Thu Oct 25, 2007 2:45 pm
Forum: Investing - Theory, News & General
Topic: Making your Estate the Beneficiary
Replies: 11
Views: 2607

dm200, This is beyond my understanding so I'm guessing, but since the estate wouldnt have been settled by the 2nd death, then the court would decide who received the assets and likely the 2 realtives would have equal rights to the $. I imagine there is also something regarding common accidents. The ...
by gassert
Thu Oct 25, 2007 2:37 pm
Forum: Investing - Theory, News & General
Topic: Making your Estate the Beneficiary
Replies: 11
Views: 2607

Chaz, You must not be saying what you are intending, or you are mixing up terms. A few things: First a survinging spouse does not pay any estate tax. There is an unlimited marital deduction. A spouse would pay income tax if/when money is taken out of the IRA. Second, A living trust is used much like...