Search found 102 matches

by NOVACPA
Fri Jan 16, 2015 12:43 pm
Forum: Investing - Theory, News & General
Topic: Buying Call Option to Fund 2015 & 2016 IRA
Replies: 18
Views: 1314

Re: Buying Call Option to Fund 2015 & 2016 IRA

I don't understand how you are using the call option to fund your IRA. You are buying a speculative call on the index. Separately you are planning to invest in the index in the future. These are two separate trades, so I would evaluate them independently. I can invest 211.54 from my paycheck in a b...
by NOVACPA
Fri Jan 16, 2015 12:38 pm
Forum: Investing - Theory, News & General
Topic: Buying Call Option to Fund 2015 & 2016 IRA
Replies: 18
Views: 1314

Re: Buying Call Option to Fund 2015 & 2016 IRA

What if the market goes down from here? You wont have the funds for the IRA when your options expire. He would have the funds. In either case he plans to have $6k available at the time of his contribution. If the market goes up, he has the benefit of buying SPY for only $200, getting more shares th...
by NOVACPA
Fri Jan 16, 2015 12:34 pm
Forum: Investing - Theory, News & General
Topic: Buying Call Option to Fund 2015 & 2016 IRA
Replies: 18
Views: 1314

Re: Buying Call Option to Fund 2015 & 2016 IRA

Why wouldn't you just purchase VTI in taxable? Like you said, the market is efficient. There's no particular reason you need to preserve today's price for years. By doing so, you'll also pay extra through spreads and commissions. I don't have the cash to purchae 5500 of VTI in taxable. If it goes d...
by NOVACPA
Fri Jan 16, 2015 11:55 am
Forum: Investing - Theory, News & General
Topic: Buying Call Option to Fund 2015 & 2016 IRA
Replies: 18
Views: 1314

Buying Call Option to Fund 2015 & 2016 IRA

I am going to fund my IRA to the maximum amount every year forward. I split my contributions between traditional and ROTH up to the the deductible portion of the tIRA as I am squarely in the 25% bracket and therefore do not have the ability to contribute 100% to either at the beginning of the year. ...
by NOVACPA
Wed Jan 07, 2015 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: new depreciation and amortization rules for rental property
Replies: 7
Views: 1670

Re: new depreciation and amortization rules for rental prope

nedsaid summarized it quite well. KPMG has a great site set up for this that has all of the information you could possibly want: http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Pages/repair-regulations-final.aspx On that site, they have a PDF that has a step-by-step decision tree to...
by NOVACPA
Tue Dec 30, 2014 2:11 pm
Forum: Personal Consumer Issues
Topic: Advice Regarding the Best Method for Selling Silver Items
Replies: 6
Views: 1121

Re: Advice Regarding the Best Method for Selling Silver Item

http://www.midwestrefineries.com/silver.htm

If you want to get as close to spot price, use them. I've used them. No fees. Just 80% TO 92% of the current spot price (depending on what you submit to them).
by NOVACPA
Mon Dec 29, 2014 3:19 pm
Forum: Investing - Theory, News & General
Topic: Giving a stock as a gift
Replies: 17
Views: 2339

Re: Giving a stock as a gift

I have done this 4 times for each of my younger siblings. I did 3 of them in late 2007ish. Tiffany's stock (TIF) for my then 4 year old sister, DreamWorks Animation (DWA) for my 11 year old brother, and Sun Microsystems (JAVA) for my 17 year old brother. At that time JAVA was changing their name so ...
by NOVACPA
Mon Dec 22, 2014 1:57 pm
Forum: Investing - Theory, News & General
Topic: Do Companies Index Their Profits?
Replies: 15
Views: 1709

Re: Do Companies Index Their Profits?

The company would be financing its own takeover. It would be a leveraged buyout. The company clearly would have exhibited a strong business model to generate profits and excess cash-flow to invest in the markets. By hoarding the cash that is then invested in equities the company will be increasing i...
by NOVACPA
Sun Dec 14, 2014 9:10 pm
Forum: Personal Consumer Issues
Topic: Taste testing wine at home
Replies: 23
Views: 2593

Re: Taste testing wine at home

TastingRoom.Com

Sample different wines for 25.00. It will build you a profile online to tell you the types of wine you will like.
by NOVACPA
Thu Dec 11, 2014 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: How to automatically transfer tenants rent to my account?
Replies: 22
Views: 3495

Re: How to automatically transfer tenants rent to my account

I use Square Cash. If you have a debit card and they have a debit card and both of you have and can operate a smartphone, this works well.

Also this may be of use: http://www.biggerpockets.com/rei/pay-re ... ent-tools/
by NOVACPA
Thu Dec 11, 2014 10:50 am
Forum: Investing - Theory, News & General
Topic: LendingClub Corporation Directed Share Program
Replies: 36
Views: 4867

Re: LendingClub Corporation Directed Share Program

It looks like you all have earned a cool $3500 this morning.

Enjoy!
by NOVACPA
Tue Dec 09, 2014 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Tax idea - swap highly appreciated stock for other assets?
Replies: 4
Views: 1073

Re: Tax idea - swap highly appreciated stock for other asset

Get married. Transfer the property tax free to your new spouse. Divorce. Sign a pre-nup excluding all other property except the property to be exchanged.
by NOVACPA
Fri Dec 05, 2014 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Question about donating inherited appreciated securities
Replies: 3
Views: 1256

Re: Question about donating inherited appreciated securities

Someone smarter will most likely follow-up with better information, but I wanted attempt to contribute here... The holding period for stock received from a decedent is automatically considered long-term. It doesn't matter how long the decedent held the stock, or how long the recipient held it. A sal...
by NOVACPA
Thu Dec 04, 2014 2:37 pm
Forum: Personal Consumer Issues
Topic: Dealing with unauthorized (lawyer) bill
Replies: 61
Views: 11594

Re: Dealing with unauthorized (lawyer) bill

I am not a lawyer, but according to your post, I don't believe you had a contract with the first contractor. There was no offer and acceptance which is one of the requirements of a valid contract. I would write him a letter stating there was no contract therefore no money owed. Keep a copy of the l...
by NOVACPA
Tue Dec 02, 2014 9:26 pm
Forum: Personal Consumer Issues
Topic: Unbroken!
Replies: 20
Views: 5643

Re: Unbroken!

I had the opportunity meet Lou Zamperini in July 2011 in Las Vegas. He gave an incredible speech and had a great conversation with everyone he spoke too. He was also very grateful to have a scholarship named for him. http://kappasigma.org/wwii-hero-olympian-and-kappa-sigma-golden-heart-recipient-zam...
by NOVACPA
Fri Nov 28, 2014 3:38 pm
Forum: Personal Investments
Topic: Putting money back in an HSA
Replies: 5
Views: 1058

Re: Putting money back in an HSA

First... Yes, that is awesome you don't have to pay the medical expenses! Second, do not suck it up and pay the penalty. Third, do not incur medical expenses for the sake of incurring expenses. Fourth, take solace in knowing that this sounds like a "mistake distribution". And per IRS guidance, "If a...
by NOVACPA
Thu Nov 27, 2014 12:00 pm
Forum: Personal Consumer Issues
Topic: Selling gold jewelry
Replies: 29
Views: 4507

Re: Selling gold jewelry

Midwest refineries will give you the best price. I've used them before.
by NOVACPA
Tue Nov 25, 2014 2:59 pm
Forum: Personal Investments
Topic: Tim Horton shareholder - what to do about Burger King Merger
Replies: 14
Views: 2664

Re: Tim Horton shareholder - what to do about Burger King Me

Agree with the other posters that there isn't any certainty. What I can say for certain, is that your vote, unless you are holding a substanial amount of stock, will not matter one iota. With 132,260,000 shares outstanding and insiders holding 7,261,074 shares, and institutions holding 88,217,420, a...
by NOVACPA
Tue Nov 25, 2014 10:12 am
Forum: Investing - Theory, News & General
Topic: PBGC guarantees 401(k) rollovers to pensions
Replies: 8
Views: 1120

Re: PBGC guarantees 401(k) rollovers to pensions

I'd like to see an explanation of how this would be executed. Or some additional literature from PBGC. It seems like you are effectively purchasing an annuity at your company's bargained rate. If your pension was $1000/mo, your $50k may buy you an additional $100/mo to $1100/mo. With many companies ...
by NOVACPA
Tue Nov 25, 2014 8:49 am
Forum: Investing - Theory, News & General
Topic: PBGC guarantees 401(k) rollovers to pensions
Replies: 8
Views: 1120

PBGC guarantees 401(k) rollovers to pensions

I saw this article in USA Today, searched Bogleheads, but couldn't find anything related to it. This seems like it would be good for the person who is 55 years old, has a company pension, and a minimal 401(k) and wants to boost their monthly payment. I didn't see much other value than that. However,...
by NOVACPA
Wed Nov 19, 2014 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Land Trust "investment" for tax deduction
Replies: 14
Views: 16395

Re: Land Trust "investment" for tax deduction

Here is some information from VA about the land credits... I'm not sure what state you are dealing wtih, but this may help you search for something similar: http://www.dcr.virginia.gov/land_conservation/lpc.shtml
by NOVACPA
Wed Nov 19, 2014 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Land Trust "investment" for tax deduction
Replies: 14
Views: 16395

Re: Land Trust "investment" for tax deduction

Thanks, Gill. This type of land trust is designed to donate a portion of the land purchase back for green space. By increasing the surrounding land it increases the value and therefore creates a delta in the purchase value and donated value - IOW what the land would be worth if developed as the sur...
by NOVACPA
Tue Nov 18, 2014 1:56 pm
Forum: Personal Investments
Topic: HSA and FICA Taxes
Replies: 11
Views: 16093

Re: HSA and FICA Taxes

Agreed.

Here is some language that seems to be a bit clearer: http://www.nfpbenefitspartners.com/levi ... _Home.aspx
by NOVACPA
Tue Nov 18, 2014 1:40 pm
Forum: Personal Investments
Topic: HSA and FICA Taxes
Replies: 11
Views: 16093

Re: HSA and FICA Taxes

So unless it is specifically a cafeteria plan as defined by the IRS, you pay FICA on it. I know that my employer allows me to adjust my contributions at any time which would not fit the bill for a cafeteria plan. For it to be a salary reduction type arrangement, whatever elections you make toward y...
by NOVACPA
Tue Nov 18, 2014 1:00 pm
Forum: Personal Investments
Topic: HSA Questions
Replies: 9
Views: 1321

Re: HSA Questions

Ah - Sorry I couldn't answer. I was consfused myself, and had to look it up.

I do not know what happens prior to age 65. I hope someone else weighs in...
by NOVACPA
Tue Nov 18, 2014 11:27 am
Forum: Personal Investments
Topic: HSA Questions
Replies: 9
Views: 1321

Re: HSA Questions

4) I understand that once I am 65, I can now withdraw from the HSA penalty-free for any reason, although I have to pay ordinary income tax - just like a tIRA or 401k - when I don't use it to pay a qualified medical expense. Also understand that when my spouse and I subsequently die, the remaining H...
by NOVACPA
Tue Nov 18, 2014 11:03 am
Forum: Personal Investments
Topic: HSA Questions
Replies: 9
Views: 1321

Re: HSA Questions

I know I can contribute up to $6650 in 2015 (family on HDHP, no other insurance) to the HSA. But my company also funds the HSA with $1200, I guess as inducement to choose the HDHP option. Does that mean that I can only contribute $5450 so that the total remains $6650? Or does it mean that the total...
by NOVACPA
Tue Nov 18, 2014 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Intro - At a [Career] Crossroads
Replies: 10
Views: 1960

Re: Intro - At a Crossroads

You said that you were in sales. You also mentioned you were quite successful. I remember vividly when my dad, a salesman, was in his mid-30's that competing companies were sending gift baskets EVERY week to get him to come work for them. I t was great. Then he turned 40 and the baskets stopped... :...
by NOVACPA
Mon Nov 17, 2014 5:11 pm
Forum: Personal Investments
Topic: Roth 401(k) Rollover to New 401(k)
Replies: 5
Views: 360

Re: Roth 401(k) Rollover to New 401(k)

Thank you! I shall "cowboy up" and keep this documented. I'll be contributing to the Roth IRA at tax time, for the forseeable future as I am about 1 year in contributions behind (i.e. I'll make the 2014 contribution in April of 2015). Ideally, I'd like to put $11,000 in for two tax years, and then b...
by NOVACPA
Mon Nov 17, 2014 4:30 pm
Forum: Personal Investments
Topic: Roth 401(k) Rollover to New 401(k)
Replies: 5
Views: 360

Re: Roth 401(k) Rollover to New 401(k)

A Roth IRA through Vanguard will probably have lower expenses than the 401k at Fidelity, anyway. It does look like you could do the "mega-backdoor Roth" - although you may want to verify with HR. Are you planning on maxing out the pre-tax contributions at $18,000 as well? Yes - in 2015 I will be ma...
by NOVACPA
Mon Nov 17, 2014 3:56 pm
Forum: Personal Investments
Topic: Roth 401(k) Rollover to New 401(k)
Replies: 5
Views: 360

Roth 401(k) Rollover to New 401(k)

Good Afternoon - I recently changed jobs and as such, I am no longer allowed to participate in my former 401(k) [was at Vanguard]. I had a a mix of of approximately $9,000 in pre-tax contributions and $11,000 in Roth contributions. The new 401(k) [at Fidelity] has the option of pre-tax or after-tax ...
by NOVACPA
Mon Nov 17, 2014 12:18 pm
Forum: Personal Consumer Issues
Topic: Angie's List Class Action settlement - for real?
Replies: 8
Views: 3041

Re: Angie's List Class Action settlement - for real?

Visit the website, http://topclassactions.com/lawsuit-sett ... ttlements/ which has a listings of open, pending, and settled class action lawsuits.
by NOVACPA
Mon Nov 17, 2014 10:29 am
Forum: US Chapters
Topic: Master thread for Washington DC Area Bogleheads
Replies: 206
Views: 77760

Re: Master thread for Washington DC Area Bogleheads

Is the next meeting date 1/18/2015 from 3 to 5 p.m.?

I have told myself that I am going to come and attend one of these meetings, but I always forget to add it to the calendar.
by NOVACPA
Thu Oct 30, 2014 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution in excess of basis
Replies: 11
Views: 1017

Re: Distribution in excess of basis

Yes. A formal liquidation can have numerous tax issues going on. I would suggest you employ the services of a tax attorney. They are going to help you in multiple ways. First, they will assist with the taxation portion of the liquidation. Second, they will be able to assist with all of the legal fil...
by NOVACPA
Thu Oct 30, 2014 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution in excess of basis
Replies: 11
Views: 1017

Re: Distribution in excess of basis

Hayden - I agree with clevername in that your CPA has the technical skills to complete the S-Corp's taxes. What he or she may be lacking is the ability to communicate HOW the S-Corp's taxes are calculate which is needed to calm any fears you have.
by NOVACPA
Thu Oct 30, 2014 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Distribution in excess of basis
Replies: 11
Views: 1017

Re: Distribution in excess of basis

Here is some information that may help you understand your situation better: http://www.journalofaccountancy.com/issues/2004/nov/avoidthetaxtrapwhenrepayingshareholderloans.htm You will want to talk with a CPA who can explain this situation to you and the various options that you can decide on. You ...
by NOVACPA
Thu Sep 11, 2014 10:57 am
Forum: Personal Consumer Issues
Topic: Vanguard Recommending Quicken Changes
Replies: 62
Views: 10674

Re: Vanguard Recommending Quicken Changes

Grrr... :annoyed

I followed the instructions per Vanguard's website, and now my share balances are all doubled.

I can't find the "placeholder entries" to delete them. Very frustrating...
by NOVACPA
Wed Aug 27, 2014 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Establishing "Small Business" and Cheating IRS?
Replies: 11
Views: 1854

Re: Establishing "Small Business" and Cheating IRS?

Has this acquaintance ever turned into a friend? If not, retain counsel. Then visit: http://www.irs.gov/uac/Whistleblower-Informant-Award "If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it co...
by NOVACPA
Fri Aug 22, 2014 9:58 am
Forum: Personal Investments
Topic: HELOC + Margin = $200k to play with
Replies: 24
Views: 2807

Re: HELOC + Margin = $200k to play with

If you cannot calculate a blended interest rate, you have no business borrowing $200,000.00. When you type out all of the 0's it helps put some real meaning behind the numbers. ((($100,000.00/$200,000.00)*2.25) + (($100,000.00/$200,000.00)*3.00))*(1-25%) = 1.96875% I'd also inquire if this loan is f...
by NOVACPA
Wed Aug 06, 2014 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Who or what inspired you and your investing approach?
Replies: 93
Views: 7698

Re: Who or what inspired you and your investing approach?

I would have to say my parents first and foremost. I remember as a kid, like 6 or 7, they would always tell me that for every dollar I saved, I could double my money in 7 years. I w"rule of 72" to me. This is when interest rates were a touch higher... I also remember them telling my babysitter that ...
by NOVACPA
Tue Jul 15, 2014 1:24 pm
Forum: Personal Consumer Issues
Topic: Best website for airfare?
Replies: 20
Views: 8534

Re: Best website for airfare?

http://www.rome2rio.com/

If you are interested in using public transportation (i.e. train, plane, bus, etc.) this is great. It will give you the time, price, route. You can add multiple locations if you know there is a cheap flight into one airport v. another.
by NOVACPA
Wed Jul 09, 2014 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Pay-off Mortgage a few years before move?
Replies: 8
Views: 1276

Re: Pay-off Mortgage a few years before move?

One point to clarify - a few people have referenced that I should compare my paying off a mortgage to investing in a 3-year CD at 3.875%. But shouldn't I be comparing the after-tax rate that I'm paying on my mortgage (closer to 2.5%?). Or am I missing something? You are comparing pre-tax return of ...
by NOVACPA
Thu Jul 03, 2014 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Virginia First Time Home-buyer Savings Account
Replies: 0
Views: 265

Virginia First Time Home-buyer Savings Account

On July 1st, 2014, a new law went into effect to provide Virginians with a new tax-exempt savings vehicle to save for the purchase of a first home. Essentially, the income earned from the account is tax free. One does not need to open a "special" account, as one can simply designate an account for t...
by NOVACPA
Thu Jun 26, 2014 3:45 pm
Forum: Personal Investments
Topic: Low Exp. Ratio 0.0018% - Am I missing something
Replies: 23
Views: 3259

Re: Low Exp. Ratio 0.0018% - Am I missing something

What would be a recommended portfolio percentage to hold in this one company? It's a pharmaceutical industry leader and I don't see bankruptcy in the near future, but I do understand your point about risk. Please see the referenced link: http://www.rbcpa.com/Enron/ene_bsc_20010126_70%20pages.pdf To...
by NOVACPA
Wed Jun 25, 2014 11:00 am
Forum: Personal Investments
Topic: PIMCO Negative AA - How to interpret?
Replies: 3
Views: 707

Re: PIMCO Negative AA - How to interpret?

Agree with bobbun, check the financials if you really want to know. But they are short the short duration liquid investment grade securities and long the longer duration securities. They are profiting off of the spread between the two. Think of it this way, you borrow (take a short position) on your...
by NOVACPA
Fri Jun 20, 2014 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Budget or create saving buckets?
Replies: 109
Views: 12804

Re: Budget or create saving buckets?

Hey NOVACPA, thanks, Ramit Sethi of 'I will teach you to be rich' is a good guy, I was actually reading the same article when I was doing my own research just before posting this thread...his book look really popular on Amazon as well. Since you are an account, you'd be great with numbers...I looke...
by NOVACPA
Thu Jun 19, 2014 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Budget or create saving buckets?
Replies: 109
Views: 12804

Re: Budget or create saving buckets?

Fidelity... I have multiple cash management accounts (CMA) with them. You can continuously change the name of the accounts to serve different purposes. ING or Cap360 is similar, I hear. For no fees, minimum balance, bill pay, etc, Fidelity CMA is my favorite. So separate account numbers for each? Y...
by NOVACPA
Thu Jun 19, 2014 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Budget or create saving buckets?
Replies: 109
Views: 12804

Re: Budget or create saving buckets?

Fidelity...

I have multiple cash management accounts (CMA) with them. You can continuously change the name of the accounts to serve different purposes. ING or Cap360 is similar, I hear.

For no fees, minimum balance, bill pay, etc, Fidelity CMA is my favorite.
by NOVACPA
Fri Jun 13, 2014 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: CPA Advice - Understanding Owner Equity/Owner Loan
Replies: 13
Views: 2289

Re: CPA Advice - Understanding Owner Equity/Owner Loan

I would suggest the following... Talk to an accountant as everyone's situation is different. There may be resasons why you would want more equity rather than a loan, but without ALL of your information, I will keep it basic. I would then suggest: Draw up a loan document. State the terms explicitly (...