Search found 5084 matches

by kaneohe
Mon Nov 30, 2009 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Social Security for non-working spouse
Replies: 2
Views: 1099

ssc......thanks for the quick and trusted reply.
by kaneohe
Mon Nov 30, 2009 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Social Security for non-working spouse
Replies: 2
Views: 1099

Social Security for non-working spouse

If working spouse starts taking SS at 62, but non-working spouse starts at FRA, does non-working spouse get the full 50% of what working spouse would have gotten if working spouse had started at FRA instead? In other words, non-working spouse is not penalized for the fact that working spouse started...
by kaneohe
Mon Nov 30, 2009 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity’s Roth conversion tool
Replies: 8
Views: 1939

Re: Fidelity’s Roth conversion tool

Most people forget that tax brackets are indexed to inflation. $86.6k of taxable income in 2009 is the top of 15% bracket for a married couple filing a standard deduction. In 20 years at 3% inflation the 15% bracket will increase to 156k ($210k in 30 years). Most people will be in the same or lower...
by kaneohe
Sun Nov 29, 2009 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed to understand Capital Gains Tax
Replies: 38
Views: 7120

I know nothing about gold or collectibles. Just found this via google search: http://www.nuwireinvestor.com/articles/gold-tax-may-reduce-record-gains-for-gold-investors-54086.aspx which suggests 28% for gold. I know nothing about the source but I also found an IRS doc when searching for collectibles...
by kaneohe
Sun Nov 29, 2009 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Help needed to understand Capital Gains Tax
Replies: 38
Views: 7120

Now consider what happens in his last example if you make 10k more OTI: the income is taxed in the 15% bracket, but it also pushes all CGQD up to 15% taxation. So you pay 15% on the 10k of OTI and an additional 15% on the 10k of CGQD that got displaced, so your effective tax rate on that 10k of OTI...
by kaneohe
Sun Nov 29, 2009 3:22 am
Forum: Investing - Help with Personal Investments
Topic: Help needed to understand Capital Gains Tax
Replies: 38
Views: 7120

AA........I think your summary is close but not quite there. I find it easier to think about this in pictorial terms (ignoring collectibles and commodities since I know little about those). Assume you have AGI less (deductions and exemptions) which equals taxable income. Call this TI. Then take your...
by kaneohe
Sat Nov 28, 2009 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed to understand Capital Gains Tax
Replies: 38
Views: 7120

Re: Help needed to understand Capital Gains Tax

AndroAsc wrote:
Stocks
Pay 15% Tax for both Dividends and Capital Gains (Long-Term).
Sometimes, depending on our taxable income, this can be 0% for qualified dividends and LTCG (gains and distributions) for the nexr 2 yrs.
by kaneohe
Fri Nov 27, 2009 11:44 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

Apologies for the ‘Stillson’ reference, I’m showing my age. This is a term for the common pipe wrench. Or, in some locales, a pipe spanner. From Wikipedia: The U.S. Patent Office issued U.S. Patent 95,744 to Daniel C. Stillson on 12 October 1869. With that fact and $4.50 you can buy a cup of coffee...
by kaneohe
Fri Nov 27, 2009 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

3.) Exchange the shares which represent the 2008 distribution as soon as they are over one year old; and 4.) In 2010, exchange the remaining shares with a loss. The loss will be applied against 2010 ST CG and ordinary dividend distribution as well as any future income. I’m confused by the statement...
by kaneohe
Fri Nov 27, 2009 9:16 am
Forum: Investing - Theory, News & General
Topic: Question about Cost basis
Replies: 11
Views: 2317

Sounds to me like the official method might be to seek permission from IRS......don't see why they would deny your switching methods since you are starting from scratch. sscritic.......I absolutely agree w/ everything you said esp. the mathematical part.....that's why I suggested that I doubt that ...
by kaneohe
Fri Nov 27, 2009 2:26 am
Forum: Investing - Theory, News & General
Topic: Question about Cost basis
Replies: 11
Views: 2317

from p. 8 of the Pub. linked by Taylor: Making the choice. You choose to use the average basis of mutual fund shares by clearly showing on your income tax return, for each year the choice applies, that you used an average basis in reporting gain or loss from the sale and whether you used the single-...
by kaneohe
Thu Nov 26, 2009 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

"So my question is this: If I convert my Roth IRA to other Vanguard funds, maintaining these new funds as a Roth IRA’s, will I maintain my five year holding period tax exempt status? I have been surfing the webs for an answer to this dilemma but all I can find is information on normal conversions in...
by kaneohe
Thu Nov 26, 2009 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning ?
Replies: 18
Views: 3558

The reasons I have read for having assets in a living trust are to avoid the cost, delays, and publicity associated w/ probate, for estate tax reduction, and in case of disability. If all the assets are in jt tenancy or w/ named beneficiaries, it is conceivable that none of these will be a factor at...
by kaneohe
Wed Nov 25, 2009 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Social security benefits for a couple
Replies: 4
Views: 2194

If you have not worked or do not have enough Social Security credits If you have not worked or do not have enough Social Security credits and you are married, you may be eligible for Social Security benefits as a result of your husband’s work. You and your children (younger than age 18 or younger th...
by kaneohe
Wed Nov 25, 2009 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning ?
Replies: 18
Views: 3558

In the seminars I used to attend decades ago, the attorneys alway made a big deal about how the probate is figured on the gross value of the house even tho it might be 100% mortgaged and you had no equity. That's a lot of bucks. How much does the attorney charge for transfer into the trust? You migh...
by kaneohe
Wed Nov 25, 2009 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

Is there any limit on the 0% LTCG tax when ordinary income is in 15% bracket? So I could have $1M in LTCG and pay zero tax on gains as long as I am in 15% bracket ? Wow. No, it doesn't work that way. You pay the 0% tax on long-term capital gains up to the total taxable income level which is the top...
by kaneohe
Wed Nov 25, 2009 1:39 am
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

Re: Tax Advice.

I was a bit confused by the different treatments of ‘STCG and STCG distributions’. I thought there was only one kind of STCG. If a STCG was created, it had to be done by the act of distributing. However when you wrote “nonqualified DIV (which includes STCG distributions)”, I see that this is descri...
by kaneohe
Tue Nov 24, 2009 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

Re: Tax Advice.

I am a bit confused about the statement, “If you do have or take LTCG gains or distributions, this might also suggest not taking capital losses since they might gain you nothing in taxes and basically waste the capital losses.” Please correct me if this is wrong. As I understand it, if I take the l...
by kaneohe
Mon Nov 23, 2009 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

Chris, I would just suggest that you use the tax software to evaluate your options quantitatively. In my mind, at least, your situation is non-trivial since you are trying to optimize competing factors: 1) the 0% tax on LTCG/Qual Div is a gift if you can manage to stay within the 15% bracket of Taxa...
by kaneohe
Mon Nov 23, 2009 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

"As I understand, I may apply $3000 of these losses per year to this income. I must apply it to LT CG first .................., ST CG second and only when these have been exhausted, to ordinary income." Chris, you probably already know this but it wasn't clear from your words: Best to look at Sch D ...
by kaneohe
Sun Nov 22, 2009 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

if you are thinking of selling for loss in taxable and buying in retirement fund, be sure not to violate wash sale rules.
by kaneohe
Sun Nov 22, 2009 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Defered annuities: what's the catch?
Replies: 12
Views: 2900

MossySF wrote:
Taxable Bonds
($1000 * 0.75 * ((1 + .05*.75) ^ 10)) = $1084
MossySF,

I agree .......very nice analysis of the various variations.
I'm having trouble understanding why the taxable bonds shouldn't be this tho......I couldn't figure out what the rest of the terms were doing.
by kaneohe
Sun Nov 22, 2009 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

I avoided your first question on purpose so there might be a flaw here but if there is, I'm sure someone will correct it...... If shares now have NAV = 10 with embedded 2 of STCG (distribution) and if they have basis of 20: 1) Case A: sell now ; get (for long term shares) LTCL = 10 2) Case B: sell a...
by kaneohe
Sun Nov 22, 2009 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Advice Request, Fund Redemption.
Replies: 38
Views: 4457

don't know if your working overseas affects this (don't think so) but your Qualified dividends (along w/ LTCG) would not be taxed if you were in the 15% bracket. I think you and livesoft may be talking about different things.... I think livesoft is talking about the CG from the possible sale of shar...
by kaneohe
Sun Nov 22, 2009 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Non-VG Roth Conversion Calculator
Replies: 6
Views: 6073

Any comments on i-orp.com ? I'm still trying to understand the output.

this should work better: i-orp.com/

guess you'll have to copy and paste link. sorry, don't understand why the 2nd one doesn't work unless messing it up the first time
prevents a successful repair
by kaneohe
Sun Nov 22, 2009 9:56 am
Forum: Investing - Help with Personal Investments
Topic: 401K Rollover
Replies: 7
Views: 1368

As already mentioned, it probably depends on what the plan allows. My plan generally allows all or nothing. However, because I had a rollover into the plan, I am allowed a partial withdrawal based on the value of that rollover. After that, all or nothing.
by kaneohe
Sat Nov 21, 2009 11:36 am
Forum: Investing - Help with Personal Investments
Topic: 2010 Roth Conversion Tax Split 2011/2012 & Estimated Tax
Replies: 12
Views: 2821

Re: 2010 Roth Conversion Tax Split 2011/2012 & Estimated

Ed, maybe I'm missing something here but this VG thing looks a bit different . A slight increase but no step jumps like in the table above. The VG info is at the end of the brochure. http://www.vanguard.com/pdf/rpd21.pdf?cbdForceDomain=true The rates I show are the same as the rates in the Vanguard...
by kaneohe
Sat Nov 21, 2009 11:03 am
Forum: Investing - Help with Personal Investments
Topic: 2010 Roth Conversion Tax Split 2011/2012 & Estimated Tax
Replies: 12
Views: 2821

Re: 2010 Roth Conversion Tax Split 2011/2012 & Estimated

2. $40K split: $20K counted as income in 2011 (tax due 4/12) and $20K counted as income in 2012 (tax due 4/13)? Remember that if you use this option, you will pay taxes at the rates in effect in 2011 and 2012. Under current tax law, if nothing is done, the federal marginal tax rates will change as ...
by kaneohe
Sat Nov 21, 2009 10:31 am
Forum: Investing - Help with Personal Investments
Topic: 2010 Roth Conversion Tax Split 2011/2012 & Estimated Tax
Replies: 12
Views: 2821

I've read similar things at fairmark.com forum.
Each person has the option to split or not split (but not both) and spouses can choose different options.
by kaneohe
Sat Nov 21, 2009 10:25 am
Forum: Personal Finance (Not Investing)
Topic: IRA/Roth IRA income limit on 2009 tax year
Replies: 10
Views: 2469

A dollar in a Roth is worth more than a dollar in a trad IRA. While this is literally true it's misleading as to what option to choose. To put a dollar into a Roth the IRS charges you your tax rate on it immediately. You have to give up more investable dollars to put a dollar in a Roth. You lose th...
by kaneohe
Fri Nov 20, 2009 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Praise for Automatic Bill Payment (not online bill payment)
Replies: 45
Views: 8129

I use ABP for my health insurance bill (my own insurance, not employer-provided) because paying it on time and not forgetting that bill is so important. The rule for many health insurance companies is that they will pay no claims for any time your insurance was unpaid (you can't go back and pay you...
by kaneohe
Thu Nov 19, 2009 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Quick questions on capital gains, loss, and taxes
Replies: 6
Views: 1156

Fairmark.com sells a very concise but thorough book titled "Capital Gains, Minimal Taxes". A very good investment. some of it is online here(check 1st 3 links) http://www.fairmark.com/search/index.htm?cx=partner-pub-0101170206512133%3A20vgpn3ysk9&cof=FORID%3A9&ie=ISO-8859-1&q=capital+gains&sa=Searc...
by kaneohe
Thu Nov 19, 2009 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Praise for Automatic Bill Payment (not online bill payment)
Replies: 45
Views: 8129

dratkinson.......very nice summary.....might add a few things that might not pertain to you when changing accounts......don't forget the direct depositors esp. if they're not monthly.....like quarterly dividends and semi-annual HH bond deposits. If your free checking depends on a direct deposit , ma...
by kaneohe
Thu Nov 19, 2009 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Quick questions on capital gains, loss, and taxes
Replies: 6
Views: 1156

and you can work it out and see w/ your own two eyes here on Sch D:

http://www.irs.gov/pub/irs-pdf/f1040sd.pdf
by kaneohe
Thu Nov 19, 2009 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Praise for Automatic Bill Payment (not online bill payment)
Replies: 45
Views: 8129

Have fun when you drop cable, change your wireless telephone company, move to a new house with new utility companies, etc. Attempts to withdraw money from your checking account might continue long after you have "closed" your various merchant accounts. I use ABP for some bills and am generally sati...
by kaneohe
Thu Nov 19, 2009 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Praise for Automatic Bill Payment (not online bill payment)
Replies: 45
Views: 8129

I also have used ABP for decades and never had a problem. It is true that if you switch accounts that it is a bit of a pain......still, it is an occasional thing, not every month which probably sums up to much more time in the end. I don't know how the billing firms input the amount due ........auto...
by kaneohe
Wed Nov 18, 2009 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: HSA help!
Replies: 7
Views: 1650

just being nit-picky here......the HSA is the tax-sheltered financial plan similar to IRA in tax benefits that hold the $$$. It is linked to a HDHP (high deductible health plan) that is the medical insurance that it sounds like you are talking about. Sometimes it causes confusion when the other term...
by kaneohe
Wed Nov 18, 2009 10:40 am
Forum: Investing - Help with Personal Investments
Topic: ? I bonds in revocable trust?
Replies: 3
Views: 1213

To retitle an existing paper bond from jt tenants to trust, do you have to send the bond in? any way to do it w/o sending it?
by kaneohe
Wed Nov 18, 2009 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Wash Sale twist
Replies: 17
Views: 2195

Re: Wash Sale twist

Tramper Al wrote: , you could use the average cost basis method for this security, assuming you have not used a different method previously.
TA...... this might be backwards......I think once you have used average cost method, you can't switch back w/o IRS ok.
by kaneohe
Wed Nov 18, 2009 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Alliant Credit Union HSA
Replies: 5
Views: 2111

I've had an HSA w/ them for 3-4 mos. and regular accounts for longer. People seem to like them, customer service is generally great, rates relatively stable. You might be able to find a neighborhood PTA to join that is less than the national one. I paid $6 for the school next door. I have not done a...
by kaneohe
Wed Nov 18, 2009 3:05 am
Forum: Investing - Help with Personal Investments
Topic: Equity indexed life insurance?
Replies: 6
Views: 1208

The concept sounds interesting but it can be (or perhaps usually is) a very complex product and the devil is in the details. Here is something from the SEC as a primer: http://www.sec.gov/investor/pubs/equityidxannuity.htm Before you jump in, you should get hold of the offering memorandum and read i...
by kaneohe
Tue Nov 17, 2009 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion. Paying taxes now or later?
Replies: 8
Views: 1947

One thing that confuses me: for a conversion in 2010, one can recognize the income in 2010, or split it across 2011 and 2012. Is it not possible to spread the income across all 3 years ? Or does one do one conversion that is recognized in 2010, and another split across 2011 and 2012 ? I think I rea...
by kaneohe
Tue Nov 17, 2009 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Muni fund swap tax question
Replies: 3
Views: 903

Yes....only the income is tax free.
by kaneohe
Sun Nov 15, 2009 9:32 pm
Forum: Personal Consumer Issues
Topic: For Bogleheads on Medicare [mymedicare.gov]
Replies: 13
Views: 3269

I tried the site, but I can't log in. I tried to register, but it seems I was automatically registered by Medicare, and I must log in with whatever password was assigned. I have no idea what that is, and don't recall receiving any notification about the site. I really dislike thumbing through paper...
by kaneohe
Sun Nov 15, 2009 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: My adviser thinks I should not be in stocks at all
Replies: 52
Views: 10700

Re: Paying off a mortgage ?

* We have children designated as beneficiaries. We decided it was better to take out the equity from our home with a low-interest (deductible) mortgage and give it to them now (this made them happy.) :lol: * By removing equity from our home now, we eliminate that portion from probate costs and esta...
by kaneohe
Sat Nov 14, 2009 1:56 am
Forum: Investing - Help with Personal Investments
Topic: Are retirement accounts exposed to liability claims?
Replies: 17
Views: 3576

IRAs are protected from both bankruptcy and general creditors to the extent permitted under state law. NY and NJ protect all IRAs from creditors claims regardless of amount, CA only protects 100k. Is the protection limit the same for both bankruptcy and general creditors in a particular state or co...
by kaneohe
Fri Nov 13, 2009 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: How does one pay for Roth IRA conversion?
Replies: 21
Views: 2256

woof755 wrote: One option for the OP which is better than using the IRA funds to pay the income tax, taking the 10% hit.

Perhaps if you pay it in 2 equal installments?
I think OP wants to convert this yr while they are in the lower tax bracket so this option would not be available to them.
by kaneohe
Fri Nov 13, 2009 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: How does one pay for Roth IRA conversion?
Replies: 21
Views: 2256

jw........you are correct. My error.
by kaneohe
Fri Nov 13, 2009 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: How does one pay for Roth IRA conversion?
Replies: 21
Views: 2256

If it is 25% or more, then convert even if you have to pay taxes at 15% out of the IRA. The 10% penalty bumps that to 16.5%, which is still not a big deal compared to 25%. JW.....isn't the 10% an "absolute" penalty of 10% of the amount withdrawn early (not 10% of the tax). If so that would make the...
by kaneohe
Fri Nov 13, 2009 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Are retirement accounts exposed to liability claims?
Replies: 17
Views: 3576

I agree w/ dbr. My understanding is that assets in a 401K are protected period (w/ just a very few exceptions). My understanding is that the same assets transfered to a rollover IRA get unlimited protection.....IF you file successfully for bankruptcy. In a practical sense, I do not understand bankru...