Suggestions for the Wiki

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abuss368
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Re: Suggestions for the Wiki

Post by abuss368 » Sat Oct 05, 2019 8:37 pm

Taylor Larimore wrote:
Sat Oct 05, 2019 1:36 pm
Barry:

nisiprius posted 180 links to Jack Bogle's speeches and op-eds from Mr. Bogle's website (which may soon disappear). I feel that it is very important that these speeches and articles be preserved and I don't know any better place than our Boglehead wiki under the "Bogle" topic.

This is a link to the links:

viewtopic.php?t=288548#p4708621

Best wishes.
Taylor
Thanks Taylor! It is important to preserve Mr. Bogle’s teachings.
John C. Bogle: "Simplicity is the master key to financial success."

nawkboy
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Re: Suggestions for the Wiki

Post by nawkboy » Sun Oct 06, 2019 4:24 pm

I suggest some posts on the details on the nuisances of obtaining access to high quality medical insurance. The optimal solutions change based on income level and personal situation, yet these fall into some obvious categories.

Rather than get caught up in the politics I would suggest any set of wiki pages be focused on the actionable facts people need to help them make good choices in their own situation.

There is a lot of complexity here, and yet there are very few well organized unbiased references people can use to take action. In many cases, just having well organized links to various external resources could help. At least in the case of highly compensated independent consultants the information gap is particularly wide. The vast majority of advice on-line is focused on lower income citizens looking at ACA plans, or on small companies with a hand-full of employees. I suspect the insurance lobby has worked hard to ensure most states define small group as two or more, explicitly excluding a spouse.

=====================
A boglehead forum post lists the following categories:

1.short term insurance, which is getting a boost from the current administrations so you can get multi year guaranteed renewals. Pros: cheap, good networks; Cons: preexisting exclusions, banned in some states

2. Ministry or similar cost sharing plans. Pros: cheaper; Cons: unclear how they might handle very expensive claims.

3. Self insurance. Pros: very cheap, good incentives for healthy lifestyle; Cons: more risky, probably requires $1-2M for worst cases

4. Group insurance thru association, separate LLC, or similar. Pros: reasonable prices, good networks available; Cons: modest additional expense in entity setup or intermediary fees

5. ACA bronze plans. Pros: good if you’re poor, old or sick; Cons: limited networks, often no PPO options, very expensive for value without subsidies.

Based on my experience, option 4 would benefit from several sub-categories. I might suggest:
4a: Single employee, officer only corporation (TriNet for national, regional PEOs when appropriate)
4b: Several employees
4c: States with small group defined as one.

There should also be an option 0 for riding on the coverage of a spouse or parent.

There could also be a section covering international travel, both short-term and long-term expat coverage.

======================
In my case I am a moderately high income consultant operating as a single shingle throughout the US. The only way I have found to access high quality medical insurance without pre-existing condition restrictions is via a PEO arrangement. As it turns out, TriNet is the only PEO supporting single employee corporations with a national reach. Leveraging a PEO such as TriNet provides access to the sort of coverage typical of corporate America with access to better doctor networks. Even an Aetna HSA compatible high deductible plan for my wife and I runs around $1200/month, yet that is typical of COBRA rates I have seen from my past employers.

With two employees (not including spouse), I would have access to small group health insurance. If I lived in one of a small set of states that define small group as one, I would be able to access small group insurance even as a single shingle.

With two or three employees there are several national PEOs worth considering. Paychex's PEO requires at least five employees, and ADP's PEO requires at least ten employees.

I can access ACA plans, yet my experience has been the most expensive ACA plans available to me have very poor doctor networks. Although the ACAA plans are far from ideal, at least they don't have pre-existing medical condition restrictions. For those with a lower income, the government subsidizes a portion of the premiums. So although the ACA plans are less than ideal, they remain better than nothing.

The gap insurance plans all exclude pre-existing conditions, and so don't work for my family.

Most of the other consultants I know are typically riding off the coverage a spouse with a full-time corporate job. Very few are aware of the PEO trick I am using.

Other than overall complexity, there is one major disadvantage of a PEO. The typical corporate insurance providers (Hartford, etc.) apparently won't write an umbrella policy with a PEO in the mix. Theft, errors & omissions, and similar corporate coverage is readily available. Similarly, the PEO provides workers compensation insurance. To date, I have not had a client require an umbrella policy for contract compliance. If that ever comes up, I will have to obtain a waiver from the client. I suspect the reality is PEO arrangements are sufficiently common that corporate America has avoided requiring vendors supply unobtainable umbrella coverage, at least for typical relatively low injury risk office jobs. Any corporate insurance broker can explain the umbrella coverage constraint far better than I.

rsasub
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Joined: Sat Feb 18, 2017 8:55 pm

Re: Suggestions for the Wiki

Post by rsasub » Tue Oct 08, 2019 7:51 pm

I have a suggestion for updating the page:
Non-US investor's guide to navigating US tax traps (https://www.bogleheads.org/wiki/Non-US_ ... x_traps#A4)

The current recommendation is if you plan to invest over USD60K in US, don't. This is due to high estate taxes. However according to this forum (https://forums.whirlpool.net.au/archive/2531401) it concludes:
So my laymans reading of that is that neither state will impose a higher tax than would be attributable to it's own citizens.
Furthermore, according to the IRS Estate Tax webpage (https://www.irs.gov/businesses/small-bu ... estate-tax):
Most relatively simple estates (cash, publicly traded securities, small amounts of other easily valued assets, and no special deductions or elections, or jointly held property) do not require the filing of an estate tax return. A filing is required for estates with combined gross assets and prior taxable gifts exceeding $1,500,000 in 2004 - 2005; $2,000,000 in 2006 - 2008; $3,500,000 for decedents dying in 2009; and $5,000,000 or more for decedent's dying in 2010 and 2011 (note: there are special rules for decedents dying in 2010); $5,120,000 in 2012, $5,250,000 in 2013, $5,340,000 in 2014, $5,430,000 in 2015, $5,450,000 in 2016, $5,490,000 in 2017, $11,180,000 in 2018, and $11,400,000 in 2019.

Beginning January 1, 2011, estates of decedents survived by a spouse may elect to pass any of the decedent’s unused exemption to the surviving spouse. This election is made on a timely filed estate tax return for the decedent with a surviving spouse. Note that simplified valuation provisions apply for those estates without a filing requirement absent the portability election.


This seems to indicate that (at least for 2019) as long as the estate is less than USD11,400,000 doesn't require an estate tax return (i.e. not liable for estate taxes?). I'm not fully sure of the further paragraph at the bottom.

Spirit Rider
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Re: Suggestions for the Wiki

Post by Spirit Rider » Tue Oct 08, 2019 8:58 pm

Keep in mind, that forum thread is only talking about Australia and I have no idea what the U.S. - Australia tax treaty treatment of estate taxes are.

Additionally, there are only 15 countries including Australia where the U.S. tax treaty (if there even is one) includes any estate tax provisions.

It is not practical for the Wiki to address all variances, especially when it does not apply the vast majority of countries.

At best the wiki should only refer people to the relevant tax treaties.

TedSwippet
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Location: UK

Re: Suggestions for the Wiki

Post by TedSwippet » Thu Oct 10, 2019 3:48 am

rsasub wrote:
Tue Oct 08, 2019 7:51 pm
I have a suggestion for updating the page:
Non-US investor's guide to navigating US tax traps (https://www.bogleheads.org/wiki/Non-US_ ... x_traps#A4)

The current recommendation is if you plan to invest over USD60K in US, don't. This is due to high estate taxes. However according to this forum (https://forums.whirlpool.net.au/archive/2531401) it concludes:
So my laymans reading of that is that neither state will impose a higher tax than would be attributable to it's own citizens.
...

This seems to indicate that (at least for 2019) as long as the estate is less than USD11,400,000 doesn't require an estate tax return (i.e. not liable for estate taxes?). I'm not fully sure of the further paragraph at the bottom.
Thanks for the note. The forum discussion you reference is specific to Australia, but the wiki page section that you cited is written for US non-residents in countries without a US estate tax treaty ("You are a US nonresident alien with poor or nonexistent US tax treaty coverage").

Australia has both income tax and estate tax treaties with the US. If you follow the flowchart through for Australia specifically, it should lead you instead to this section: "A6. Choose your funds and ETFs for best local tax outcome".

Australian investors do not have to worry about confiscatory US estate tax above $60k of US holdings, but only when they reach $11mm or so in total worldwide assets. Investors in many other countries do, though. Without an estate tax treaty, US estate taxes begin at just $60k for US assets held by nonresident aliens. The list of countries with a US estate tax treaty is particularly short.
rsasub wrote:
Tue Oct 08, 2019 7:51 pm
Furthermore, according to the IRS Estate Tax webpage (https://www.irs.gov/businesses/small-bu ... estate-tax): ...
This is the IRS estate tax page for US citizens and residents. The IRS estate tax pages for nonresident aliens are here:

https://www.irs.gov/businesses/small-bu ... ted-states
https://www.irs.gov/individuals/interna ... ax-returns

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