A spray of questions as a newbie snaps to attention in the last decade before retirement

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Hydromod
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A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by Hydromod » Sat May 11, 2019 10:07 pm

This entry was edited to clarify a few questions.

A confluence of events started us focusing on finances in detail after a lifetime of not paying much attention (other than funding retirement).

We're hoping for some advice on the mechanics of investing and some confirmations/warnings regarding our approaches. We beg your indulgence with the spray of questions.

He’s an engineer/scientist with experience in risk and some training in engineering economics. He was exposed to her guru, Dave Ramsey, over a very long road trip, found some inconsistencies, decided to figure out things given looming cash flow issues. He’s lurked here and elsewhere to get some education, now knows the difference between equities, annuities, bonds, growth, and value.

He started investing ~15 years ago, aside from the few small accounts, just maxing contributions to the 403b with a plan to “be fairly aggressive”. She has been plugging away all her life with a conservative plan. They married 5 years ago, and he has two kids from his previous marriage (mostly living with ex).

College is looming. One is starting college in the fall, the other four years out. Both are ~half funded with 529, with the separate parents splitting the remainder. Planning on $8k/year, increasing to $11k/year, for 8 years, in addition to funds already in 529s. 529s are split 50/50 with ex, contributions stopped several years ago and no more additional contributions are planned.

Renovations are looming, with a kitchen and significant landscaping. Alternatively, a move to a cheaper place out of the school district could take place, preferably after the second has finished with high school to avoid out-of-district tuition costs (about the same as property taxes).

Retirement is looming, with a timeline of 11 years (if all goes to plan) to square things up.

So the plan is to get all of the cash flowing in a disciplined way with minimal future intervention, given the concurrent needs for getting college, renovation, and retirement squared away at the same time, and stick to the strategy going forward.

Emergency funds: six months
Debt: $180k mortgage @ 2.95% (aimed to pay off just before retirement)
Tax filing status: MFJ
Tax rate: 22% bracket (18% effective) federal, no state
State: TX
Age: him (58), her (52)
Desired allocation: ballpark 60/40
Desired international: not so much
Desired retirement date: 11 years for both
Gross income: ~$250k

Current retirement assets >$1MM

Taxable

2% Unity Bancorp (UNTY), gifted from his father in 2008.

His traditional 403b (TIAA) (50% overall)

45% Equity index (TIEIX 0.05%) “M* large blend”
00% Growth & Income (TIGRX 0.40%) “M* large growth”
20% Midcap value (TIMVX 0.42%)
27% Bond (TBIIX 0.12%)
08% Traditional annuity

His Roth IRA at TIAA (1% overall)

100% undisciplined mixture

His SEP at Edward Jones (3% overall)

100% various American Fund equities

Her traditional 403b (TIAA) (45% overall)

47% undisciplined mixture of equities
03% undisciplined mixture of bonds
05% real estate
44% Traditional annuity

Both have Roth 403b available, but have not taken advantage.

Contributions

$25k his 403b + $13k employer
$25k her 403b + $11k employer

It may be difficult to contribute much more over the next few years, given college and renovation plans.

Current strategic thinking

After SS and the current traditional annuities are considered, we would like to draw $45k to $90k after tax from the other investments, today's dollars, but could get by with less if necessary.

Our retirement planning considers several scenarios, including one or both living to 100. According to actuarial tables, there is a 50/50 chance that one will outlive the other by at least 10 years, so our planning considers strategies that work with single filing survivor as well as MFJ. Leftover funds are ultimately to be left to the kids, preferably as Roth IRAs. In general the traditional accounts will be drawn down before any Roth accounts are touched.

He’s looked at the I-ORP site and various spreadsheet calculators, and developed his own Excel and Matlab calculators. In his calculators, he allocates expenses in three categories: fixed, health, and discretionary, all indexed to cost of living. The health category increases over time relative to cost of living. The discretionary has upper and lower bounds, and decreases over time relative to cost of living. Flexibility tests play with the discretionary limits. Coding is underway to consider glide path options, fund expenses, historical return sequences, and perhaps later Monte Carlo sequences.

Comparing calculations with various contribution/RMD/usage scenarios suggest that funding the Roth 403b would likely not have much of an effect on after-tax income while both of us are alive. However, with plausibly good returns a survivor may face as much as 50 percent larger taxes in the single filing bracket from RMDs larger than needed to cover expenses with our current strategy of funding the traditional 403b, compared to switching to Roth 403b contributions starting immediately (at a reduced rate keeping the same current after-tax income). Therefore we will be switching to Roth 403b contributions going forward, letting the traditional 403b ride.

With the current investment and contribution rate, we will likely meet our desired expense needs if we can consistently average 4 percent real growth/year and will almost certainly meet our needs with 6 percent/year, assuming that both continue working at the same location. This is likely for her, but not a slam dunk for him.

Questions

1. For funding college expenses for the first child, we will need an additional $24k over 4 years. There are 1000 shares of Unity stock as an UTMA (price/share ranged from 18 to 25 over the last year, currently ~$22/share, purchased at $8/share). This was gifted from his father in 2008. We would like to sell this and use it over the four years, but it’s quite volatile. Selling it over 3 years would eliminate capital gains taxes, but the volatility is worrisome. So the question is: do we just sell it now and put it somewhere safe for use over installments, or do we spread over 3 years to eliminate taxes? We are leaning towards selling it all now.

2. For funding college expenses for the second child, we plan that we will need an additional $36k starting in 4 years. There are 1200 shares of Unity stock (not UTMA) that could be used for this purpose. Child support payments will end at that time, which would leave a cash flow that could cover likely expenses with a bit left over. So the question is: do we (i) sell this stock now and invest for the four to seven year period, (ii) sell now and invest for retirement, or (iii) gift it to the child, wait four years and then follow the same strategy as the first child?

3. Showing absolute newbieness (we have never bought or sold stock), what are the mechanics of actually going about selling stock? What records do you need for tax purposes?

4. His ideal allocation would be 60/40 to 70/30, US only, with equities split 50/50 between large cap growth and mid cap value and bonds split 50/50 long-term treasury and short-term treasury, based on playing with the LETF Backtest-Portfolio-returns-rev18b.xlsx spreadsheet. This barbell strategy did well since 1985, with slightly better returns and lower ulcer index than the Bernstein 60/40 total-stock-market/total-bond-market. Given the funds available with TIAA, his TIAA allocations will likely be as given for his 403b going forward, with the existing traditional annuity standing in for bonds. Does this approximation for traditional annuity = bonds seem reasonable? Or would it be better to assume the annuity is cash?

5. Backfitting with portfolio visualizer (2003-present) suggests that various weights among the equities had a range of net CAGR from 8.27 to 8.62 after expenses (best net CAGR with 50/50 TIGRX/TIMVX). Is it reasonable to worry about allocations to optimize this minor range of differences?

6. Her allocation has been skewed conservative, with a much larger traditional annuity component. She has come to want to match his returns, implying a skew to 65/35 or so. In her case, the combined bond/annuity component is currently 47%. Should we consider the traditional annuity component as part of the bond allocation or should we treat it essentially as a pension contributing a fixed amount, and use the desired equity/bond split for all other funds?

7. Rebalancing with the traditional annuity is a little tricky, because taking money out is not allowed. We thought of minimizing the chance of inadvertently rebalancing out of the annuity by not funding it, with annual rebalancing taking care of funding it. Is there a simple way to handle this issue?

8. He is considering using the almost-forgotten small Roth IRA to experiment with riskier investments, inspired by Hedgefundie. The outcome would ideally be left to the kids and the small percentage is not being counted on for retirement. TIAA does not offer the riskier ETF funds needed, so he would like to open an outside account (say at M1). Again with the use of the LETF Backtest-Portfolio-returns-rev18b.xlsx spreadsheet 1985-present, he is considering a 50/50 mix of health care (VGHCX) and a 3x leveraged portfolio. VGHCX has had very good returns, had relatively low correlation with the 3x funds, and seems like a good bet to continue going up. The leveraged portfolio will be 40/60, as suggested by Hedgefundie, but with equities split 50/50 between UPRO and midcap indexing (UMDD?), and treasuries split 50/50 between long- and intermediate-term (TMF and TYD?). The leveraged mix had slightly better returns with slightly better ulcer index. From 1985 on, the total mix exhibited slightly lower returns than the original 40/60 3x Hedgefundie proposal with about half the ulcer index. Compared to the Bernstein 60/40 total-stock-market/total-bond-market portfolio, the return is about double with a slightly better overall ulcer index. Does this sound like a reasonable approach? Would a different online account be better?

9. He is considering extracting the almost-forgotten Edward Jones SEP to a more convenient account, in particular converting the SEP IRA to a Roth IRA and adding this to the same leveraged risky portfolio to increase the initial fraction to 4 percent of overall. What issues should we be aware of in the conversion from SEP to Roth? Should the conversion be done as soon as practical, spread over time, or should the SEP be simply transferred to a lower-cost account without conversion?

Thanks for looking at this magnum opus.
Last edited by Hydromod on Sun May 12, 2019 2:29 pm, edited 1 time in total.

HEDGEFUNDIE
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Joined: Sun Oct 22, 2017 2:06 pm

Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by HEDGEFUNDIE » Sat May 11, 2019 10:38 pm

Hydromod wrote:
Sat May 11, 2019 10:07 pm
8. He is considering using the almost-forgotten small Roth IRA to experiment with riskier investments, inspired by Hedgefundie. The outcome would ideally be left to the kids. TIAA does not offer the riskier ETF funds needed, so he would like to open an outside account (say at M1). Again with the use of the LETF Backtest-Portfolio-returns-rev18b.xlsx spreadsheet 1985-present, he is considering a 50/50 mix of health care (VGHCX) and a 3x leveraged portfolio. VGHCX has had very good returns, had relatively low correlation with the 3x funds, and seems like a good bet to continue going up. The leveraged portfolio will be 40/60, as suggested by Hedgefundie, but with equities split 50/50 between UPRO and midcap indexing (UMDD?), and treasuries split 50/50 between long- and intermediate-term (TMF and TYD?). The leveraged mix had slightly better returns with slightly better ulcer index. From 1985 on, the total mix exhibited slightly lower returns than the original 40/60 3x Hedgefundie proposal with about half the ulcer index. Compared to the Bernstein 60/40 total-stock-market/total-bond-market portfolio, the return is about double with a slightly better overall ulcer index. Does this sound like a reasonable approach? Would a different online account be better?
:sharebeer

If you are looking for something uncorrelated with my 3x strategy, I'd look at utilities, not health care. Utilities are the least volatile sector in the S&P and also the least correlated to the rest of the index.

UTSL is the 3x utilities ETF. It's returned about the same as my strategy since inception two years ago, with lower correlation to the S&P than my strategy.

Topic Author
Hydromod
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by Hydromod » Sat May 11, 2019 11:12 pm

I wasn't considering doing anything different than you, but then I got to playing with the spreadsheet on a long flight. I like it.

It just struck me how much mixing the 1x health in strongly reduced overall volatility without very much reducing portfolio returns. The spreadsheet doesn't have many sectors, and none at 3x. The mix with midcap and intermediate treasury seemed to beef up returns and reduce volatility, but not by very much.

I thought you or others might be interested in this finding, if you weren't already aware. Energy didn't really do much good, I found.

In retrospect, I kinda think health care should continue to climb so adding it to the mix made sense. I'm certainly betting that my health expenses will climb...

The 2017 comparison of 3x ETFs (I forgot where I saw it) also showed CURE as the single strongest single 3x ETF, so there's that as well.

Cheers

increment
Posts: 139
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by increment » Sat May 11, 2019 11:55 pm

Hydromod wrote:
Sat May 11, 2019 10:07 pm
what are the mechanics of actually going about selling stock? What records do you need for tax purposes?
Each share you own has an acquisition date and a (cost) basis. You will have multiple "lots" if you purchased at different times, for example via dividend reinvestment.

When you sell in an account that is not tax advantaged, you need to know the (cost) basis, which represents how much you paid for the asset. The rest of the proceeds are the taxable capital gain (i.e., the profit).

IRS Publication 550 covers "Investment Income and Expenses". Publication 551 covers the specific topic "Basis of Assets".

When filing taxes, you don't need to submit any records at all; you just enter the basis on Form 8949. However, the IRS may ask for justification, and so you want to have the relevant records.

For purchases since 2012, your broker/investment company is supposed to keep track of the basis and submit it to the IRS when you sell. (If something goes wrong, however, you are still responsible for correct recordkeeping.)

I see that Unity Bank has an investor website that contains information that might be helpful for recordkeeping. For example, they list their past stock splits, which are events that affect basis. I am amazed that any company went to the trouble to execute 11:10 and 21:20 stock splits in the 21st century.

Prahasaurus
Posts: 125
Joined: Fri Mar 29, 2019 1:02 am

Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by Prahasaurus » Sun May 12, 2019 12:36 am

Hydromod wrote:
Sat May 11, 2019 11:12 pm
In retrospect, I kinda think health care should continue to climb so adding it to the mix made sense. I'm certainly betting that my health expenses will climb...

The 2017 comparison of 3x ETFs (I forgot where I saw it) also showed CURE as the single strongest single 3x ETF, so there's that as well.
I wonder what impact the coming election season will have on healthcare? The US continues to spend a fortune on healthcare, its system is by far the most expensive in the developed world, while delivering less than average results by most objective measures. Something will eventually have to give, and the solution is political. I would expect to see a tremendous amount of volatility in the healthcare sector over the next few years.

runner540
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Joined: Sun Feb 26, 2017 5:43 pm

Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by runner540 » Sun May 12, 2019 7:48 am

Wow, a lot going on here: college, renovation, moving houses, and above all retirement planning. You came to the right place for comprehensive and unbiased advice.

1. and 2. Retirement comes before college in the priority list. Especially since your second child has not yet enrolled in a college and committed to something expensive. It's not clear to me your overall spending needs for retirement ($50k/year? $150k/year?), and whether you will have enough. ">$1MM" already saved for retirement is a big number, but meaningless without the context of expenses. Go through that exercise first, THEN determine if you can spend more on college and renovation.

Any SS or pensions coming your way? You seem concerned about healthcare - will you be eligible for Medicare?

You want to work 11 more years each and are assuming current compensation that will allow you to save. I hope that happens, but you need to run some scenarios that have less optimistic assumptions.

You can save more in your 403b's since you are over 50. ($6k extra for $25k each)

I don't do sector specific investing (like overweighting healthcare). Just no way to know what I don't know. What do you know about the sector that the market doesn't already know and bake into the prices? Everyone is aware that demand for healthcare is growing.

dknightd
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by dknightd » Sun May 12, 2019 8:19 am

Hydromod wrote:
Sat May 11, 2019 10:07 pm
6. Her allocation has been skewed conservative, with a much larger traditional annuity component. She has come to want to match his returns, implying a skew to 65/35 or so. In her case, the combined bond/annuity component is currently 47%. Should we consider the traditional annuity component as part of the bond allocation or should we treat it essentially as a pension contributing a fixed amount, and use the desired equity/bond split for all other funds?

7. Rebalancing with the traditional annuity is a little tricky, because taking money out is not allowed. We thought of minimizing the chance of inadvertently rebalancing out of the annuity by not funding it, with annual rebalancing taking care of funding it. Is there a simple way to handle this issue?
First, I must say you seem to have things well sorted out and planned. Congratulations.

I will take on these two questions. I hope I do not raise more questions than I answer ;)

6. TIAA traditional is a unique product. It has similarities to fixed income, so while accumulating I considered it part of my bond holdings (but that might not have been appropriate, I should have perhaps considered it part of my non-equity holdings.) But as I approach retirement (a few months away) I'm considering more as an SPIA pension, which I think was its original intent. So, I currently think of my "illiquid" TIAA traditional holdings as money I will convert to a pension income. As soon as I purchase that SPIA/pension my AA will revert to the balance of my holdings in that account. Which probably means I need to buy some bonds to stay near my desired 50/50 or 60/40 AA (but I probably will not since I also hold some liquid TIAA traditional, see below).

7. There are two types of TIAA traditional. One I call illiquid (the one you can only annuitize, or withdraw in 10 more or less equal amounts), and one that you can withdraw at will (which I call liquid). Typically if that money is in a RA or GRA it is illiquid, if it is in a Supplemental retirement plan GSRA it is liquid.
TIAA will not rebalance money out of an illiquid TIAA traditional. They will only rebalance in.
TIAA will rebalance in or out of a liquid TIAA traditional account.
I have stopped contributing to illiquid TIAA traditional. I have enough in that to annuitize what I want to annuitize.
I am still contributing to liquid TIAA traditional. This part I consider more bond like, but is "guaranteed" to return 3% tax deferred.

So, you need to figure out how much of your TIAA traditional is liquid, and how much is illiquid.

In my case, money my employer contributions are illiquid. Money I contribute is liquid. TIAA has many plans, it depends on what your employer has decided.

Please excuse typos - I was called away and did not properly proofread. I'll submit anyway hoping it will be helpful.

Edit: One quick addition, if you will stay married till death do you part, consider your separate holdings as one. You are smart to consider that one will die before the other.
Last edited by dknightd on Sun May 12, 2019 8:31 am, edited 1 time in total.

HEDGEFUNDIE
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by HEDGEFUNDIE » Sun May 12, 2019 8:27 am

Hydromod wrote:
Sat May 11, 2019 11:12 pm
I wasn't considering doing anything different than you, but then I got to playing with the spreadsheet on a long flight. I like it.

It just struck me how much mixing the 1x health in strongly reduced overall volatility without very much reducing portfolio returns. The spreadsheet doesn't have many sectors, and none at 3x. The mix with midcap and intermediate treasury seemed to beef up returns and reduce volatility, but not by very much.

I thought you or others might be interested in this finding, if you weren't already aware. Energy didn't really do much good, I found.

In retrospect, I kinda think health care should continue to climb so adding it to the mix made sense. I'm certainly betting that my health expenses will climb...

The 2017 comparison of 3x ETFs (I forgot where I saw it) also showed CURE as the single strongest single 3x ETF, so there's that as well.

Cheers
Here is another way to look at it.

https://www.portfoliovisualizer.com/fun ... F11%2F2019

VGHCX has not outperformed utilities over the past 16.5 years.

Luckywon
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by Luckywon » Sun May 12, 2019 9:14 am

If I were you I would move toward the three fund portfolio to the extent possible without triggering capital gains taxes.

-Liquidate all retirement holdings and taxable holdings that have little or no capital gains and purchase vti, vxus and bnd (or their mutual fund equivalents) in an allocation that moves your overall holdings toward your desired allocation. It sounds like you will be stuck with some taxable holdings that have high capital gains already. Keep fixed income purchases in retirement accounts.

-If you have to sell equities to cover tuition or other expenses sell those with the lowest capital gains.

-Fund back door Roth every year

-Make no more contribution to annuities.

-Close your EJ accounts. Transfer to shares in kind, to the extent possible, to another brokerage like Schwab, Fidelity or Vanguard. If they cannot be transferred in kind, liquidate them and then transfer them.
Last edited by Luckywon on Sun May 12, 2019 10:26 am, edited 1 time in total.

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mhadden1
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by mhadden1 » Sun May 12, 2019 10:14 am

Hydromod wrote:
Sat May 11, 2019 10:07 pm
8. He is considering using the almost-forgotten small Roth IRA to experiment with riskier investments, inspired by Hedgefundie.

.....

9. He is considering extracting the almost-forgotten Edward Jones SEP to a more convenient account, in particular converting the SEP IRA to a Roth IRA and adding this to the same leveraged risky portfolio to increase the initial fraction to 4 percent of overall.
A newbie who wants to play might be better off joining a bowling league. More fun anyway.
Oh I can't, can I? That's what they said to Thomas Edison, mighty inventor, Thomas Lindberg, mighty flyer,and Thomas Shefsky, mighty like a rose.

ChinchillaWhiplash
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by ChinchillaWhiplash » Sun May 12, 2019 11:19 am

With no state tax, do you get any benefit from a 529 other than tax free growth? I would max out all tax deferred space 1st. Then put the rest into a high yield savings account or a taxable account with money market and/or tax free bond fund for money you might need in the next few years (reno, college, etc). If there is no tax advantage with muni fund, you could use a short term indexed bond fund (investment grade). The rest can go into a low cost, low tax drag indexed equities funds to suit your AA.

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Hydromod
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by Hydromod » Sun May 12, 2019 3:50 pm

Thanks for the responses!

I edited the original post to clarify some points.

I should have mentioned that the 529 was joint with the ex, and we're finished contributing to it.

The unty stock was all gifted in 2008, then promptly crashed and only recently has it recovered. Unity was started in part by a family member, so we just left it alone and had essentially forgotten about it. We've never actually bought or sold stock, and don't intend to going forward, hence our newbie question about the mechanics of liquidating it.

I forgot we were doing the catch-up contribution. Oops! $25k/yr each + 9% from employer.

In our projections, we consider SS plus the traditional TIAA annuity as a "pension", and draw additional funds from the other accounts. We're still working out strategies, and will be refining over time, but generally we fix the expense factors that are relatively predictable or of concern (health) and adjust the discretionary spending. So far we've just considered a range of desired after-tax income with gradual plausible trends to start off, and draw from the accounts as needed to satisfy the maximum of RMDs and expenses, but we will see if sequences of returns will reveal something that will cause changes. If generated, excess RMDs are assumed to be reinvested in taxable accounts.

We generally expect that we will be satisfied with drawing $45k plus taxes after SS + annuity, but are targeting twice that for planning purposes. Travel is expensive...

We are definitely inspired by the three fund portfolio, and we're in the process of realigning the 96% of our portfolio with TIAA to be generally consistent. We're considering whether there is enough benefit in taking advantage of historical correlations between different market segments to barbell small additional returns with reduced volatility, while keeping overall proportions fixed. The large component of illiquid traditional annuity in her 403b is fighting with this, which is why we were wondering how to compensate.

We've tried bowling. I'm sorry, it's not really for me. Now, math and science is... and the risky bit is only 4% of current, which we aren't counting on or adding to going forward.

I will definitely look into utilities. That's good wisdom on health. Thanks.

increment
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by increment » Sun May 12, 2019 8:59 pm

Hydromod wrote:
Sun May 12, 2019 3:50 pm
The unty stock was all gifted in 2008, then promptly crashed and only recently has it recovered. Unity was started in part by a family member, so we just left it alone and had essentially forgotten about it. We've never actually bought or sold stock, and don't intend to going forward, hence our newbie question about the mechanics of liquidating it.
You will want to ascertain, as well as you can, the basis of the gifter.

softwaregeek
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by softwaregeek » Mon May 13, 2019 7:06 pm

Is this correct? I thought basis was time of gift.

MrBobcat
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by MrBobcat » Mon May 13, 2019 7:16 pm

softwaregeek wrote:
Mon May 13, 2019 7:06 pm
Is this correct? I thought basis was time of gift.
That's inheritance. If stock is gifted while a person is alive their original basis comes with the gift.

increment
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by increment » Mon May 13, 2019 7:38 pm

MrBobcat wrote:
Mon May 13, 2019 7:16 pm
If stock is gifted while a person is alive their original basis comes with the gift.
Unless the original basis was more than the value at time of gift, if I read IRS Publication 551 correctly.

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Hydromod
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by Hydromod » Mon May 13, 2019 8:37 pm

Hopefully the basis will be simple, I expect that it was purchased specifically for gifting. I may be able to get initial price from the gifter. If not, I think I can get information on the starting dates to estimate fair market value.

Dividends were reinvested for one set but not the other, and we weren't keeping track very well, especially at first. Is there some simple way to account for older reinvested dividends? Perhaps by assuming that the current number of shares were all purchased at the original price? I know some dividends occurred below the initial price and others above the initial price.

MrBobcat
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Re: A spray of questions as a newbie snaps to attention in the last decade before retirement

Post by MrBobcat » Mon May 13, 2019 10:01 pm

increment wrote:
Mon May 13, 2019 7:38 pm
MrBobcat wrote:
Mon May 13, 2019 7:16 pm
If stock is gifted while a person is alive their original basis comes with the gift.
Unless the original basis was more than the value at time of gift, if I read IRS Publication 551 correctly.
True.

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