Search found 19 matches

by usain5
Tue Jan 05, 2021 12:22 am
Forum: Personal Investments
Topic: Unloading a tax-inefficient fund
Replies: 32
Views: 2304

Re: Unloading a tax-inefficient fund

According to Vanguard's website, for after-tax returns for the preceding 10-years (prior to 12/31/2020), VGHAX had lower returns than VTSAX after taxes on distributions, but higher returns than VTSAX after taxes on distributions and sales of fund shares. Here's the info: VTSAX (returns, 10-year, CAG...
by usain5
Tue Jan 05, 2021 12:01 am
Forum: Personal Finance (Not Investing)
Topic: I don't trust my kids with a trust
Replies: 41
Views: 4891

Re: I don't trust my kids with a trust

It sounds like the accountant is recommending an UTMA not a trust being drafted by an attorney. In most states, including PA, the funds must be turned over to the beneficiary at 21. If you want to hold onto the funds past the age of 21, an original trust document will need to be developed. Just to ...
by usain5
Thu Dec 10, 2020 10:51 am
Forum: Personal Investments
Topic: Question about in-service rollovers...
Replies: 15
Views: 919

Re: Question about in-service rollovers...

Double-check that your plan allows in-service rollovers. My employer's plan does not allow them. Specifically, the key phrase you want to confirm, if you want to transfer from non-Roth after-tax (NRAT) 401k to Roth IRA is "Non-hardship in-service withdrawals" (NHISW). These differ from th...
by usain5
Thu Dec 10, 2020 10:47 am
Forum: Personal Investments
Topic: IRA conversion strategy in retirement, at long-term top marginal rate
Replies: 13
Views: 1012

Re: IRA conversion strategy in retirement, at long-term top marginal rate

You would also need to know the breakdown between qualified and non-qualified dividends/interest to see what the marginal tax rates would be for different levels of conversions. Plus factor in state taxes. Great points. I don't have the granularity on these details to factor into my recommendation,...
by usain5
Thu Dec 10, 2020 10:43 am
Forum: Personal Investments
Topic: IRA conversion strategy in retirement, at long-term top marginal rate
Replies: 13
Views: 1012

Re: IRA conversion strategy in retirement, at long-term top marginal rate

Thank you for all the meaningful replies, and points for us/him to consider. In the intervening couple of days, I directed my relative to this actual thread so that he could read it unfiltered, and consider various perspectives. He shared the following feedback with me (as well as permission to disc...
by usain5
Thu Dec 10, 2020 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance advice
Replies: 18
Views: 1079

Re: Life insurance advice

Concur with most up-thread advice. Another approach to consider is to establish a mini-ladder of level-term products. For some background: As noted, the longer the level-term period, the more expensive the term product is on a per-year (and overall) basis. This makes sense as the mortality risk is g...
by usain5
Wed Dec 09, 2020 8:10 pm
Forum: Personal Investments
Topic: How to - 3 fund rule in My Portfolio
Replies: 3
Views: 406

Re: NEED HELP - My Portfolio Review

Vanguard Brokerage *Created 2 months ago-recommendations are always welcome, not sure on the expense ratio on these* Stock - (BB) BLACKBERRY LTD - $34.08 Stock - (BEP) BROOKFIELD RENEWABLE - $58.50 Stock - (MRNA) MODERNA - $169.70 --Total $264.35 Side-note on the reason for uncertainty on expense r...
by usain5
Wed Dec 09, 2020 8:04 pm
Forum: Personal Investments
Topic: Calling All Boglehead Angels - NYSDCP 457
Replies: 22
Views: 1812

Re: Calling All Boglehead Angels - NYSDCP 457

Could you please help us narrow down the request for advice to a specific area?

Are you looking for support for allocation decisions, or for savings levels, or for participation in 403B vs other vehicles?

You might consider posting your portfolio question in this format.

Thanks!
by usain5
Wed Dec 09, 2020 7:59 pm
Forum: Personal Investments
Topic: Grandparent Gift to Grandchildren - Questions
Replies: 4
Views: 782

Re: Grandparent Gift to Grandchildren - Questions

There's no tax issue or reporting for amounts from one person to another person at $15k each or less. He can gift as many people this amount that he wants. If he wants to gift more this year, he reports it to the IRS and his lifetime gifting max is reduced by that amount. My initial response was ve...
by usain5
Mon Dec 07, 2020 9:06 am
Forum: Personal Investments
Topic: Total Bond vs Guaranteed 3% Account
Replies: 17
Views: 1910

Re: Total Bond vs Guaranteed 3% Account

One other consideration: I'd assume you can leave it in 401k in 3% stable value for now, and then later decide to move it to IRA, etc., if / when 3% fixed-income is no longer as attractive. The reverse is not true (ie, can't move it back to 401k). In other words, you also have the monetary value of ...
by usain5
Mon Dec 07, 2020 9:02 am
Forum: Personal Investments
Topic: precious metals investing: what ETFs and good info references
Replies: 6
Views: 666

Re: precious metals investing: what ETFs and good info references

Please also note that some commodity ETPs issue K-1s, rather than 1099s. Just something to take into consideration for tax time.

For more info, see this article on ETF.com.
by usain5
Mon Dec 07, 2020 8:55 am
Forum: Personal Investments
Topic: IRA conversion strategy in retirement, at long-term top marginal rate
Replies: 13
Views: 1012

IRA conversion strategy in retirement, at long-term top marginal rate

A close relative of mine recently asked me for advice with his strategy to convert (or consider for conversion) a large traditional IRA into a Roth IRA. I'd like to help him make the most tax-optimal decisions with the information he (so far) has shared. He's newly retired, in his early 70s, having ...
by usain5
Sun Dec 06, 2020 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: Unemployment and/or Disability?
Replies: 13
Views: 948

Re: Unemployment and/or Disability?

The license I carry of most value is a Class A Master Electrician. In Minnesota every contractor is required to have someone with this license. It may be possible to carry this license for another contractor/business but the most I could expect to earn is $500/1,000 a month. Even if I was contracte...
by usain5
Sun Dec 06, 2020 11:40 pm
Forum: Personal Investments
Topic: Inherited Trust Fund Question
Replies: 6
Views: 823

Re: Inherited Trust Fund Question

Obtain the trust documents. Seek "your own" legal counsel. j :happy Agree with Sandtrap above. If possible in your situation, might be useful to also obtain last year's tax filing for the trust, on the assumption that the trust is non-grantor and is filing its own return with its own TIN....
by usain5
Sun Dec 06, 2020 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: Second Home, Air BnB, Use an LLC?
Replies: 12
Views: 1255

Re: Second Home, Air BnB, Use an LLC?

phxjcc: Thanks for the LLC advice. I'll be visiting my local attorney to better understand everything! IANAL, but I'd also put on the agenda for review with your counsel the topic as to whether a single-/sole-member LLC offers you all the asset protection you might seek, as compared to a multi-memb...
by usain5
Sun Dec 06, 2020 11:31 pm
Forum: Personal Investments
Topic: Vanguard Mutual Fund to ETF Conversion - How often?
Replies: 14
Views: 932

Re: Vanguard Mutual Fund to ETF Conversion - How often?

I believe Vanguard owns some tax-efficiency patents which give them some sort of competitive advantage over Fidelity. Correct? Yes. I do believe the core patents for that IP is becoming public in the next few years... Here's a link to the actual patent at USPTO. I believe it expires in 2023. Additi...
by usain5
Sun Dec 06, 2020 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Deadline for setting up a new solo 401K?
Replies: 42
Views: 2521

Re: 2020 Deadline for setting up a new solo 401K?

As I stated, if you want to make employee deferrals you must adopt the one-participant 401k and make an employee deferral election by 12/31. That election must be deterministic based on your self-employed earned income. There is no election required for employer contributions, which are entirely di...
by usain5
Sun Dec 06, 2020 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: Does an inheritance increase your taxable estate?
Replies: 15
Views: 1243

Re: Does an inheritance increase your taxable estate?

However, even if he left it to her outright, there wouldn't be a second estate tax on it. Section 20132 allows a credit for the tax on prior transfers if the recipient dies within 10 years from the original decedent's death. The credit is 100% in the first two years, 80% in years 3 and 4, 60% in ye...
by usain5
Sun Dec 06, 2020 11:12 pm
Forum: Personal Investments
Topic: Investment advice - long term
Replies: 10
Views: 895

Re: Investment advice - long term

I'd recommend that between Vanguard and Fidelity as a brokerage, you go with Fidelity. Much, much better customer service, more robust website, local offices, and a wider-array of benefits and services for investors. Just stick with low-cost Fidelity mutual funds or Vanguard ETFs. Vanguard mutual f...