Search found 709 matches

by senex
Fri Apr 16, 2021 3:25 pm
Forum: Personal Consumer Issues
Topic: Snowbirds establishing FL residency from Northeast- Residency audits
Replies: 65
Views: 5485

Re: Snowbirds establishing FL residency from Northeast- Residency audits

My point here is that I would not (in my mind) have one clear primary residence....I would have to choose one for practical purposes (voting, driving, taxation). If it's truly ambiguous, even to you, I'd reckon you haven't changed your domicile. My experience as a layman is that a state (in these s...
by senex
Fri Apr 16, 2021 3:03 pm
Forum: Investing - Theory, News & General
Topic: Schwab trying to dissuade me from Vanguard bond funds
Replies: 25
Views: 3387

Re: Schwab trying to dissuade me from Vanguard bond funds

I have invested in Vang muni funds for over 20 years and I trust them. Just wondering about these other options and if I'm missing certain better opportunities. As a boglehead, my usual feeling is "no, not missing anything." There is not a secret muni market with supercharged yields. Bond...
by senex
Fri Apr 16, 2021 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: gift taxes
Replies: 12
Views: 809

Re: gift taxes

Right. Thanks. I wonder whether a decade or two later someone would ask for a record of the transfers? Also, Is it better to transfer to an individual account of the 'non-spouse' person or -- for ease of transfer, -- transfer 15k to a joint account ... I recommend reading Form 709 instructions (lin...
by senex
Thu Apr 15, 2021 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: gift taxes
Replies: 12
Views: 809

Re: gift taxes

See instructions for IRS Form 709 (Gift Tax Return) "The gift tax does not apply to an amount you paid on behalf of an individual to a qualifying domestic or foreign educational organization as tuition for the education or training of the individual [...] The payment must be made directly to th...
by senex
Wed Apr 14, 2021 2:06 pm
Forum: Investing - Theory, News & General
Topic: Investment strategies for high net worth individuals
Replies: 86
Views: 11401

Re: Investment strategies for high net worth individuals

Adding to the chorus. I experimented with direct indexing. The first few years offered modest tax loss opportunities. After that, they mostly vanished. Everything either (a) had gone up or (b) had gone down and already been sold. The "helpers" pitch this program because they are superb sal...
by senex
Thu Apr 08, 2021 1:27 pm
Forum: Forum Issues and Administration
Topic: Question about discussion of a proposed law or regulation
Replies: 14
Views: 827

Re: Question about discussion of a proposed law or regulation

That makes sense. When they say 11.7 million per person, when would that even apply? Would both mother and father have to pass at the exact same time for that to happen? Or do the accounts have to be non-joint accounts? Estate tax is always per-person. When person XYZ dies, you add up everything ow...
by senex
Thu Apr 08, 2021 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Minimum Net Worth for a Trust
Replies: 10
Views: 2177

Re: Minimum Net Worth for a Trust

What is a minimum net worth where estate planning and setting up a trust are worth it? OP, are you asking about setting up: (a) a revocable trust while living (b) an irrevocable trust while living (c) a testamentary trust (created by your will, after you die, to hold the bequests made to your heirs...
by senex
Thu Apr 08, 2021 9:01 am
Forum: Personal Consumer Issues
Topic: Are architect estimates for construction costs usually pretty accurate?
Replies: 21
Views: 1474

Re: Are architect estimates for construction costs usually pretty accurate?

I've known a handful of people who've done builds or large remodels using an architect. None have stayed in budget. Some ended at 2x original cost.

Best wishes.
by senex
Wed Apr 07, 2021 10:06 am
Forum: Personal Investments
Topic: Inherited Trust Portfolio - Planning Advice
Replies: 6
Views: 847

Re: Inherited Trust Portfolio - Planning Advice

1. Should I be worried about a large percentage of my portfolio being tied to AAPL and BRK.A? 20% is above the comfort level of many bogleheads. Sometimes rich people are willing to accept high variance (including risk of large loss). Buffett has almost 100% in one stock; his vice-chairman (Munger)...
by senex
Mon Apr 05, 2021 12:10 pm
Forum: Personal Investments
Topic: Trust fund with cousin, she lives overseas. What to do?
Replies: 3
Views: 525

Re: Trust fund with cousin, she lives overseas. What to do?

If you are a trustee, then review the trust document to understand your duties and powers, and the duties and powers of the other trustees. If you post that info here, you may be pointed in the right direction. The way you're talking, it sounds like your cousin is also a trustee, and is making the i...
by senex
Sat Apr 03, 2021 1:19 pm
Forum: Investing - Theory, News & General
Topic: Ibond really a good vehicle against inflation
Replies: 56
Views: 4761

Re: Ibond really a good vehicle against inflation

As mentioned, I-bonds match the govt's definition of inflation, which is a highly controversial definition. For instance, imagine the economy has only two items, rice & iphones, and you spend equal amounts on each. If rice goes from $1/pound --> $1.20/pound And iphones go from $600/each --> $800...
by senex
Fri Apr 02, 2021 5:31 pm
Forum: Personal Investments
Topic: JTWROS investment acct owned by parent & adult child [Questions]
Replies: 2
Views: 335

Re: JTWROS investment acct owned by parent & adult child [Questions]

Everything Alan said. You got lucky that a knowledgeable person replied first. Lots of these threads have misinformation like “jtwros is always owned 50/50.” Note that when parent dies, the investment company may not automatically step up in the way you expect (or think is legal). You might need to ...
by senex
Thu Apr 01, 2021 7:23 am
Forum: Personal Finance (Not Investing)
Topic: Quick Jump from High Income to Low Income, tax questions
Replies: 4
Views: 536

Re: Quick Jump from High Income to Low Income, tax questions

You could research Roth conversions and tax gain harvesting. You could do some social security modeling. I’m sure there are other things too.
by senex
Fri Mar 26, 2021 8:59 am
Forum: Personal Finance (Not Investing)
Topic: JTWRS Problems - what are my options?
Replies: 136
Views: 10496

Re: JTWRS Nightmare - what are my options?

A. Consult a lawyer and it could be $1K or it could be much more OP, you seem to misunderstand how hiring an attorney works. You can tell an attorney "I want to go as far as I can go on $1k, then re-evaluate." You may be surprised how far that goes. You don't need to sign a letter or enga...
by senex
Tue Mar 23, 2021 11:29 am
Forum: Personal Consumer Issues
Topic: Safety of logging in to retirement account using unsecure wifi?
Replies: 33
Views: 3043

Re: Safety of logging in to retirement account using unsecure wifi?

I'll just note that a password manager prevents MITM attacks too, because the password manager won't be fooled by similar looking URLs. Password manager will prevent attacks where you click a bad link, but it won't protect against DNS man-in-the-middle, which is what I understand is the biggest thr...
by senex
Mon Mar 22, 2021 5:09 pm
Forum: Personal Consumer Issues
Topic: Safety of logging in to retirement account using unsecure wifi?
Replies: 33
Views: 3043

Re: Safety of logging in to retirement account using unsecure wifi?

Financial firms have used https for years. It only protects against very simple attacks (plain text sniffing). As I understand it, the big threats on public wifi are man-in-the-middle attacks via DNS spoofing, which https doesn't prevent. A hospital wifi is unlikely to be deliberately setup for frau...
by senex
Fri Mar 19, 2021 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: GRRR - - Vanguard Tax error
Replies: 1
Views: 392

Re: GRRR - - Vanguard Tax error

It is pretty routine to get corrected 1099s in March. If you already filed, you must decide whether to amend or not. Both your federal & state tax liability went down. So if you amend, you'll get that extra $1 + $32. If you don't amend, the irs/state might automatically correct it and send you a...
by senex
Mon Mar 15, 2021 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Trustee is refusing to give me an annual statement
Replies: 39
Views: 3762

Re: Trustee is refusing to give me an annual statement

I do not mean to quibble but all I want is for the trust to be honored as written. Meaning to provide me with housing (there is enough in it to buy a small condo) and possibly help with some of my medical expenses as is also spelled out in the trust. Your wishes are very reasonable. Sadly, in cases...
by senex
Thu Mar 11, 2021 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes Work on a Testamentary Trust
Replies: 21
Views: 1252

Re: How do Taxes Work on a Testamentary Trust

Manzanita wrote: Thu Mar 11, 2021 11:38 am Thanks. Do you know where I can find a table of these "highly compressed" tax brackets?
See page 5 of this IRS form

The 37% federal rate starts at $13,050 of taxable income.
by senex
Thu Mar 11, 2021 11:10 am
Forum: Personal Investments
Topic: Should I invest in an upcoming SPAC @ $4? Usual price is $10
Replies: 58
Views: 4258

Re: Should I invest in an upcoming SPAC @ $4? Usual price is $10

johnsmithsf wrote: Thu Mar 11, 2021 10:47 am Promoter has no prior record of raising money from institutions
Does this concern you? It would concern me.

I recommend brainstorming at least 5 ways you can lose 100% of your investment in this scheme. If you can't come up with that many ways, you probably don't understand what is happening.
by senex
Thu Mar 11, 2021 11:03 am
Forum: Personal Finance (Not Investing)
Topic: How do Taxes Work on a Testamentary Trust
Replies: 21
Views: 1252

Re: How do Taxes Work on a Testamentary Trust

A testamentary trust has its own tax ID number and files a tax return each year. Its capital gains, dividends, and other realized income either must be (a) kept in the trust or (b) distributed to the beneficiary (or some split between the two). In your case, it sounds like (b) is limited to educatio...
by senex
Tue Mar 09, 2021 4:55 pm
Forum: Personal Consumer Issues
Topic: Solar Questions Problems to overcome
Replies: 37
Views: 3028

Re: Solar Questions Problems to overcome

1) The governing principle is "for safety, don't feed electricity into grid when grid is off." A cheap installation (most?) doesn't have the parts to properly isolate, so it shuts down completely. Given proper engineering, and the extra cost, you could disconnect from grid and keep powerin...
by senex
Tue Mar 09, 2021 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Should umbrella insurance amount be based on assets?
Replies: 51
Views: 3635

Re: Should umbrella insurance amount be based on assets?

Your non-bulletproof assets are next in line after your insurance, so it's a personal judgement call about what ratio is comfortable. If your assets are in the millions, the cost of bumping your umbrella from 1M to 3M or 5M is very cheap. A 3M barrier is a lot harder for someone to overcome than a 1...
by senex
Fri Mar 05, 2021 7:55 pm
Forum: Personal Investments
Topic: Seeking opinions on specialized trust for inherited IRA
Replies: 5
Views: 281

Re: Seeking opinions on specialized trust for inherited IRA

This FlexIRA is one of the options that my lawyer directed me to (as a possibility, he wasn't twisting my arm about it.) Much of the world (including attorneys) pay ~1%+ for money management, so your attorney may think this is a reasonable thing to do. Bogleheads usually cringe at fees like that. I...
by senex
Fri Mar 05, 2021 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: (erroneous) IRS Notice of Deficiency, how to proceed?
Replies: 23
Views: 1350

Re: (erroneous) IRS Notice of Deficiency, how to proceed?

I've had several notices that took 2-3 document round trips before they were resolved. I handled them all myself. I hypothesize that one's first reply is routed to a low-level employee who may not understand it. Later replies get elevated to employees with more understanding. I have had no success a...
by senex
Fri Mar 05, 2021 12:40 pm
Forum: Personal Investments
Topic: Is it important to log what I bought a mutual fund for at different points?
Replies: 15
Views: 3781

Re: Is it important to log what I bought a mutual fund for at different points?

You are probably fine. A new law circa 2012 requires brokerages to track your cost basis for new positions. Your broker should have full cost basis info for every share purchased after 2012-ish (I forget the exact date it went into effect). You must keep your own records for shares bought before 201...
by senex
Fri Mar 05, 2021 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Amend tax return? Owe $1
Replies: 22
Views: 2362

Re: Amend tax return? Owe $1

In the tax file, what all should be kept and for how long? I only have the filed 1040 copies and have been discarding the 1099 etc. That too i just have electronic pdfs no paper.. If i get audited can i just take computer with me to show them whatever or is it better to start keeping a paper file? ...
by senex
Fri Mar 05, 2021 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Advice regarding Promissory Notes
Replies: 2
Views: 189

Re: Advice regarding Promissory Notes

I don't think the police will deal with contract disputes. Your recourse is the court system. For a $15k debt, my guess is that you'll pay more in attorney+court fees than you will ever recover ("When you go to court, everyone loses except the lawyers"). A company raising debt in $15k incr...
by senex
Thu Mar 04, 2021 1:07 pm
Forum: Personal Investments
Topic: Are wash sales across all accounts or per account?
Replies: 8
Views: 581

Re: Are wash sales across all accounts or per account?

From Schwab:
Yes, wash-sale rules apply across all of your accounts, including those outside Schwab. In addition, wash-sale rules also apply to transactions in your spouse’s accounts.
by senex
Thu Mar 04, 2021 1:03 pm
Forum: Personal Investments
Topic: Anybody have experience with Citi Wealth Management?
Replies: 4
Views: 629

Re: Citi wealth management cash offer

Basically just 0.5% with the minimum deposit and it just goes down from there. I mean, 0.25% bonus for $1M is almost insulting. +1 1. Upfront you get +0.5% (best case). 2. Every subsequent year you get -1% (due to high fees). 3. Plus they apply steady pressure to upsell you to more complicated prod...
by senex
Thu Mar 04, 2021 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Amend tax return? Owe $1
Replies: 22
Views: 2362

Re: Amend tax return? Owe $1

When amending is worse for all parties involved (it costs the govt money, probably more than $1, to process another return), I lean strongly toward not amending. I have never had problems. I strongly agree with ipdiddly about writing a few sentences to yourself, in your tax file, explaining what hap...
by senex
Wed Mar 03, 2021 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Depreciate Solar Panels If Electric Utility Issues 1099 Misc
Replies: 45
Views: 3257

Re: Depreciate Solar Panels If Electric Utility Issues 1099 Misc

Let's say I have a garage on my property and I rent it out to the utility company so they can store one of their trucks there. Presumably, as a landlord collecting rent, I assume I can depreciate the garage. It is certainly not a hobby. The IRS has issued guidelines for the case of a garage. If it ...
by senex
Wed Mar 03, 2021 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Depreciate Solar Panels If Electric Utility Issues 1099 Misc
Replies: 45
Views: 3257

Re: Depreciate Solar Panels If Electric Utility Issues 1099 Misc

I think you missed the part about a hobby not being done for profit. If you are getting paid on a regular basis, then it's profit. ... That said, I'm open to further clarification since I lack knowledge in this area. ipdiddly, you sound inexperienced in tax audits. The operation of a 9-way test is ...
by senex
Tue Mar 02, 2021 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Depreciate Solar Panels If Electric Utility Issues 1099 Misc
Replies: 45
Views: 3257

Re: Depreciate Solar Panels If Electric Utility Issues 1099 Misc

ipdiddly, that 1099 income might be deemed hobby income by the IRS, for which expenses are not deductible (except as misc itemized deductions above the applicable percent of AGI). The 9-part test for business vs hobby is here , and includes things like "maintaining complete and accurate books a...
by senex
Sun Feb 28, 2021 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Putting more than 20% down on a home?
Replies: 38
Views: 3713

Re: Putting more than 20% down on a home?

I have never said to myself "I wish I had gone deeper into debt."

If putting more money down will strengthen your offer, that's a real benefit. If you decide later that you prefer having more debt, you can look into a HELOC or a refi.
by senex
Sun Feb 28, 2021 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Issues selling an estate owned "landlocked" vacant lot in NC
Replies: 42
Views: 3608

Re: Issues selling an estate owned "landlocked" vacant lot in NC

Agree with others that the *true* fair market value sounds close to zero, or potentially negative. I would have no moral qualms selling it to a neighbor for $1. (Donating to a conservancy or city can be difficult and tedious) If the heirs don't like the idea, you can offer to transfer it to their na...
by senex
Sat Feb 20, 2021 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Changing Will, considering long term estate after gone
Replies: 31
Views: 2437

Re: Changing Will, considering long term estate after gone

Vanderbilt was the richest man in America and his fortune was gone in 3 generations. He was incredibly shrewd and had access to the most expensive attorneys. Nor is his case unique; shirtsleeves to shirtsleeves in three generations is a well known rule of thumb. Endowed foundations, once the benefac...
by senex
Wed Feb 10, 2021 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: What is creditor and divorce protection in an irrevocable trust?
Replies: 11
Views: 649

Re: What is creditor and divorce protection in an irrevocable trust?

There are some excellent recent threads on these questions, with frequent posts by subject-matter experts. The law has all kinds of quirks, and that's why (I think) it's hard to find a concise description anywhere. It's all "facts and circumstances" in the attorney world. It also varies by...
by senex
Wed Feb 10, 2021 2:38 pm
Forum: Investing - Theory, News & General
Topic: Educate me about the "naked short" issue
Replies: 44
Views: 3879

Re: Educate me about the "naked short" issue

From what I understood, the illegal part would be a PB offering a borrow without actually locating the borrow first. Several banks have paid hefty fees for not actually formally locating the borrow first. I get that it is sorted out after the fact, but the locate is an actual action, not just a gen...
by senex
Wed Feb 10, 2021 9:38 am
Forum: Personal Finance (Not Investing)
Topic: File and amend or just extend?
Replies: 8
Views: 496

Re: File and amend or just extend?

Everyone I know in this situation files for an extension. It presumably increases your risk of the refund-theft thing, but the amend technique has its own problems (as you've discovered).
by senex
Fri Feb 05, 2021 5:24 pm
Forum: Personal Investments
Topic: Accredited Investor annual income requirement clarification?
Replies: 5
Views: 708

Re: Accredited Investor annual income requirement clarification?

I've never heard an official definition, nor have I heard of it being audited. You just sign a paper as part of the investor packet. Which makes it seem like it's kinda left to you to do a reasonable calculation. I always figured it was a cover-your-you-know-what issue. The issuer gets your signatur...
by senex
Fri Feb 05, 2021 2:57 pm
Forum: Investing - Theory, News & General
Topic: Educate me about the "naked short" issue
Replies: 44
Views: 3879

Re: Educate me about the "naked short" issue

Also Nisiprius, here is the SEC commenting on why naked shorting is kinda sorta reasonable. “Naked” short selling is not necessarily a violation of the federal securities laws or the Commission’s rules. Indeed, in certain circumstances, “naked” short selling contributes to market liquidity. For exam...
by senex
Fri Feb 05, 2021 2:49 pm
Forum: Investing - Theory, News & General
Topic: Educate me about the "naked short" issue
Replies: 44
Views: 3879

Re: Educate me about the "naked short" issue

When I was in the biz - which was a while ago - before one could short sell the brokerage had to know it could borrow shares. And I will admit that there is a difference between actually having available shares on the book verse a signal from a sec lending unit that they could lend you shares at th...
by senex
Fri Feb 05, 2021 2:18 pm
Forum: Investing - Theory, News & General
Topic: Educate me about the "naked short" issue
Replies: 44
Views: 3879

Re: Educate me about the "naked short" issue

Great questions, Nisiprius, and great responses on this thread. Adding a little more commentary. 1) Aren't standard short sales and "naked shorts" completely different kinds of transaction? At settlement time, yes, it is very different to deliver shares, vs not deliver them. At trade time,...
by senex
Fri Jan 29, 2021 2:54 pm
Forum: Investing - Theory, News & General
Topic: What happens if my shares are "loaned" to an entity that goes bankrupt?
Replies: 12
Views: 1167

Re: What happens if my shares are "loaned" to an entity that goes bankrupt?

It sounds like brokerages (and maybe some fund families) "Loan" shares belonging to individual investors without telling the actual owner. That is true in the "margin account" agreements I've seen. I'm not sure if they can lend your shares from a non-margin account. I have asked...
by senex
Tue Jan 19, 2021 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about making a will
Replies: 59
Views: 3436

Re: Questions about making a will

That's actually just part of the secure act. They are eligible designated beneficiaries until they reach majority. Also, the act states they must be the owner's child, AKA no grandchildren. Thanks, I don't really understand the secure act fully. My admittedly cartoonish understanding is that the RM...
by senex
Tue Jan 19, 2021 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about making a will
Replies: 59
Views: 3436

Re: Questions about making a will

Can anyone confirm that these software or doc preparer wills do not offer testamentary trust options? Last few times I've looked (most recent about 2 years ago) it did offer testamentary trust option, but very simple. Only a few lines were dedicated to the trust, listing the beneficiary(ies), trust...
by senex
Tue Jan 19, 2021 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about making a will
Replies: 59
Views: 3436

Re: Questions about making a will

Is it even possible to tax optimize tIRA inheritance? How? Some options include: 1) Convert to Roth while alive 2) If multiple beneficiaries, leave tIRA to the beneficiary in the lowest tax bracket 3) If will includes donations to charity, give the tIRA to charity 4) If minor beneficiary(ies), cert...
by senex
Sun Jan 17, 2021 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about making a will
Replies: 59
Views: 3436

Re: Questions about making a will

I think the more I learn about the (not very fun subject) prior to making the will, the more effective the will be that I create, whether I use a DIY will or go with an attorney. Agree. Spending $100 on a software will could save way more than $100 worth of an attorney’s time later, because you wil...
by senex
Fri Jan 15, 2021 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: How to view Austin-suburb housing market?
Replies: 96
Views: 8167

Re: How to view Austin-suburb housing market?

House prices are hard to predict, like stock prices. Rule of thumb is that financial risk is greatest if you buy expecting to sell in the next 5ish years. If you expect to stay longer, the financial aspects are less prominent, and the non-financial aspects often drive the decision (do you want creat...