Search found 429 matches

by ipdiddly
Wed Apr 14, 2021 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Power of a personal real estate offer letter
Replies: 43
Views: 2271

Re: Power of a personal real estate offer letter

As a cynic, I would automatically assume that anything written was fake and specifically designed to sway me. Let's face it - if you are writing such a letter, are you going to be truly honest or are you going to write what you think the seller wants to hear? If I were a seller, I would want to actu...
by ipdiddly
Wed Apr 14, 2021 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 115
Views: 8061

Re: Prenuptial arrangements

Here is a sample "pro-con" list taking finances into consideration: Con - he's old, boring, drinks too much and has bad breath. Pro - he's a millionaire. We have a winner! Go for it. Edit: I apologize in advance for my bad attempt at humor. I understand humor is antithetical to the BH phil...
by ipdiddly
Wed Apr 14, 2021 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Loaning $15K / IRS form implications
Replies: 10
Views: 493

Re: Loaning $15K / IRS form implications

You're welcome. Glad to help.
by ipdiddly
Wed Apr 14, 2021 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Loaning $15K / IRS form implications
Replies: 10
Views: 493

Re: Loaning $15K / IRS form implications

I think you are making this more complicated than it needs to be. Just write her a check for $15K (or $10K, then $5K as needed). It is presumptively a gift for IRS purposes, but no reporting is required since there is a $15K exclusion for gifts. When she has the money, which is apparently in a few m...
by ipdiddly
Wed Apr 14, 2021 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 115
Views: 8061

Re: Prenuptial arrangements

What's the number one reason people get divorced? Hint hint... :moneybag I strongly suspect that most divorces have numerous other serious underlying incompatibilities. There's a long laundry list: alcohol, drugs, gambling, abuse to name of few. And many simply get to the point where they just can'...
by ipdiddly
Wed Apr 14, 2021 9:03 am
Forum: Personal Finance (Not Investing)
Topic: W-4 error, had single filing status not married
Replies: 6
Views: 425

Re: W-4 error, had single filing status not married

Actually, checking "single" and having more withholding is a good thing. That will insure that you don't have a big tax bill next April. My son checks single and has an additional $50 withheld on top in order to avoid being under-whithheld and possibly incurring a penalty. The tax withhold...
by ipdiddly
Wed Apr 14, 2021 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 115
Views: 8061

Re: Prenuptial arrangements

1) Big picture stuff. Saving is important to me and I wanted to ensure she was onboard with at least an initial savings rate of 20% and putting away half of future raises. Wow! I guess times are really different today. When we got married the big picture stuff was: "Do we have enough to pay th...
by ipdiddly
Tue Apr 13, 2021 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 115
Views: 8061

Re: Prenuptial arrangements

I'm likely going to be getting married as my partner and I have been discussing possibly getting engaged . .... I'm a boglehead and thus a planner for each contingency . It's very hard for me to jump into marriage without better understanding the rules and then making some plans. Those two sentence...
by ipdiddly
Tue Apr 13, 2021 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 115
Views: 8061

Re: Prenuptial arrangements

I'm likely going to be getting married as my partner and I have been discussing possibly getting engaged. .... I'm a boglehead and thus a planner for each contingency. It's very hard for me to jump into marriage without better understanding the rules and then making some plans. Those two sentences ...
by ipdiddly
Tue Apr 13, 2021 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Any happy lawyers out there?
Replies: 89
Views: 7726

Re: Any happy lawyers out there?

There was very little real training offered or given at the big law that I was at. At the small and mid-size firm, there was a lot of training opportunities. It was much more of a family environment. For the most part, the difference between a $500B deal and a $10M one is the dollar value. But beca...
by ipdiddly
Tue Apr 13, 2021 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Any happy lawyers out there?
Replies: 89
Views: 7726

Re: Any happy lawyers out there?

I was also fortunate because I spent almost my entire career as a corporate lawyer, so I didn't have the billable hour grind and could balance work and family. Do you mean you were an in-house attorney at a corporation? Yes. I should also point out that while my corporate salary was three to four t...
by ipdiddly
Tue Apr 13, 2021 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Any happy lawyers out there?
Replies: 89
Views: 7726

Re: Any happy lawyers out there?

there are no politics, and . . . I am a respected member of my community. Those two statements sound incorrect in today's climate so I am wondering in what community do you teach? Let's turn the question around. I am a practicing lawyer (ok, that's fictional since long retired) and am thinking of g...
by ipdiddly
Tue Apr 13, 2021 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Any happy lawyers out there?
Replies: 89
Views: 7726

Re: Any happy lawyers out there?

There are lots of people who like baseball or basketball and work hard to develop their skills. But very few make it to the big leagues. Some will play in the minor leagues for a few years before being tossed aside. The same process happens in law. Studying Supreme Court cases is fascinating and inv...
by ipdiddly
Mon Apr 12, 2021 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: How do you define health, education, maintenance and support with a trust?
Replies: 17
Views: 1148

Re: How do you define health, education, maintenance and support with a trust?

Lots of lessons to be learned here. 1. When you create a trust to benefit certain beneficiaries, be sure to choose the trustee carefully. Perhaps include language making it possible to replace the trustee. Or perhaps include a co-trustee. 2. Realize that compensating the trustee based on AUM creates...
by ipdiddly
Mon Apr 12, 2021 4:49 pm
Forum: Personal Investments
Topic: Superfund 529 with <$70k year 1, contribute the difference years 2-5?
Replies: 13
Views: 1574

Re: Superfund 529 with <$70k year 1, contribute the difference years 2-5?

Re your plan - assuming our child even qualifies for financial aid in the future, does $X in an UTMA account decrease one's financial aid package more than $X in a 529? Undoubtedly, there will be those who will suggest a 529 plan is advantageous over a UTMA. However, you need to be realistic. If yo...
by ipdiddly
Sun Apr 11, 2021 1:28 pm
Forum: Investing - Theory, News & General
Topic: Strategy for RMD to ROTH
Replies: 4
Views: 477

Re: Strategy for RMD to ROTH

Just to be absolutely clear, you CANNOT move money from an inherited IRA to a Roth. You can withdraw funds from the i-IRA (e.g., RMD) and pay taxes on the withdrawn amount. If you have working compensation (e.g., W2 income), you may be able to make a new Roth contribution if you qualify. That new co...
by ipdiddly
Sun Apr 11, 2021 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Turbotax "Date of Withdrawal" - electronic paymet of Federal
Replies: 15
Views: 1054

Re: Turbotax "Date of Withdrawal" - electronic paymet of Federal

Mine has always been withdrawn on the date I set on TT over many, many years. This year, both my state and federal, and my son's state and federal, were withdrawn on April 9, the date I set on TT. I am surprised that others have a different experience.
by ipdiddly
Sun Apr 11, 2021 9:05 am
Forum: Personal Investments
Topic: Superfund 529 with <$70k year 1, contribute the difference years 2-5?
Replies: 13
Views: 1574

Re: Superfund 529 with <$70k year 1, contribute the difference years 2-5?

I’d like to add to a scenario and see what you think as I have a similar, not exact, but similar question. Since the max gift to a 529 for couples is actually $30K ($15K each) per year, can a married couple superfind and then contribute annually. Here is the example… Year 1: $75K husband contributi...
by ipdiddly
Sun Apr 11, 2021 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Gift Tax form 709
Replies: 13
Views: 788

Re: Gift Tax form 709

Some have suggested that if you take such a person out to dinner periodically, or take them with you on a vacation where you pay for everything, that it isn't a gift to them since you're doing this for your own enjoyment (i.e. benefit). I'm not sure if the IRS would agree or if they've even ever ru...
by ipdiddly
Sat Apr 10, 2021 5:33 pm
Forum: Personal Investments
Topic: Looking for a well-diversified portfolio of 100% stocks
Replies: 14
Views: 1135

Re: Looking for a well-diversified portfolio of 100% stocks

Diversification aka "diworsification."
I got out of international stocks in the early 90's and never looked back. I prefer to be fully invested in the strongest economy in the world. And I tend to be 90+% in equities. Of course, everyone needs to make their own personal decision.
by ipdiddly
Sat Apr 10, 2021 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Gift Tax form 709
Replies: 13
Views: 788

Re: Gift Tax form 709

You are correct that the IRS instructions are rather indecipherable to us mere mortals. Doing a first 709 is not all that bad. I just did one a few months ago. I am concerned if I have to do a second one in the future since you need to carry over info from the first one, and that increases the compl...
by ipdiddly
Fri Apr 09, 2021 3:54 pm
Forum: Personal Investments
Topic: 0.65% on a 9 month CD, is there anything better for now?
Replies: 9
Views: 1708

Re: 0.65% on a 9 month CD, is there anything better for now?

Bear in mind that the amount of interest earned on $100K over 12 months at 0.4%, 0.6% and 0.8% is $400, $600 and $800. For 9 months (3/4 year), those amounts are $300, $450 and $600. And that's at $100K. For smaller amounts, the amount of interest is even less. So one needs to decide if relatively s...
by ipdiddly
Thu Apr 08, 2021 6:06 pm
Forum: Personal Investments
Topic: How to get my Roth IRA contribution history
Replies: 15
Views: 1197

Re: How to get my Roth IRA contribution history

Just curious, but why do you need your Roth contribution history? Everything in the account is tax free (at least after age 59 1/2).
by ipdiddly
Thu Apr 08, 2021 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Minimum Net Worth for a Trust
Replies: 10
Views: 2166

Re: Minimum Net Worth for a Trust

The short answer is there is no minimum net worth. That said, as a practical matter it probably doesn't make sense for a very small estate. Much depends on what assets make up the estate. If the person only has a bank account or brokerage account, you can avoid probate by simply adding a joint owner...
by ipdiddly
Thu Apr 08, 2021 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust Question - Disclaiming?
Replies: 8
Views: 703

Re: Revocable Living Trust Question - Disclaiming?

I should have mentioned that it is fairly easy to amend a trust. You don't need to rewrite and execute the whole trust. You can literally write a one page amendment that is signed by the grantor and trustee (preferably with signatures notarized, but even this may not be mandatory). "This amendm...
by ipdiddly
Thu Apr 08, 2021 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust Question - Disclaiming?
Replies: 8
Views: 703

Re: Revocable Living Trust Question - Disclaiming?

You can also amend the trust language so that it reads something like: "IRA goes to beneficiary A, but if beneficiary A predeceases me or disclaims this bequest, then to beneficiaries X and Y equally." This is just an example, and the language becomes more complicated if the IRA is listed ...
by ipdiddly
Mon Apr 05, 2021 9:55 am
Forum: Investing - Theory, News & General
Topic: Forgoing Taking RMD's in 2020
Replies: 4
Views: 826

Re: Forgoing Taking RMD's in 2020

1. Guessing about the future is not allowed on this forum. That said, I predict we will all be dead in the future.
2, There is no chance whatsoever that RMD's will be forgiven this year. There are too many tax dollars at stake. And the economy has recovered.
by ipdiddly
Sun Apr 04, 2021 4:47 pm
Forum: Personal Investments
Topic: Where to go for cash position returns ?
Replies: 15
Views: 1043

Re: Where to go for cash position returns ?

While lots of BHers try to eke out every last tenth of a percent, bear in mind that unless you have loads of cash, that extra fraction does not amount to much. For example, if you have $100K in cash, that will earn $100 at 0.1%, $500 at 0.5%, and $1000 at 1%. While I wouldn't sneeze at $1000, that's...
by ipdiddly
Sun Apr 04, 2021 4:38 pm
Forum: Investing - Theory, News & General
Topic: Parent contribute to child IRA
Replies: 10
Views: 1373

Re: Parent contribute to child IRA

I've gifted money to my son and DIL for several years so they could fund their Roth accounts. If you are concerned that they will take the money and run, another approach might be to offer to give them a matching gift. "I will give you $6000 if you show me you funded your IRA or Roth." Of ...
by ipdiddly
Sun Apr 04, 2021 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Grandparents superfund 529 with grandchild beneficiary son owner?
Replies: 18
Views: 1376

Re: Grandparents superfund 529 with grandchild beneficiary son owner?

If your parents superfund a 529, each of them will need to complete a 709 gift tax return indicating each one is using up the 5 year exclusion. My wife and I chose to have one of us superfund our grandchild's 529 ($75K) while the other gifted $15K to a custodial account. We felt there are too many r...
by ipdiddly
Sun Apr 04, 2021 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: RMD(s) for Traditional IRA and Rollover IRA?
Replies: 10
Views: 893

Re: RMD(s) for Traditional IRA and Rollover IRA?

Why not just combine the two t-IRA's into one account? What's the point of maintaining two t-IRA's? That would simplify things considerably. To my knowledge, there is no advantage in maintaining multiple t-IRA accounts. Calling one t-IRA account a "rollover" is meaningless.
by ipdiddly
Sun Apr 04, 2021 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Any reason to file taxes before May 17?
Replies: 34
Views: 3629

Re: Any reason to file taxes before May 17?

You know you can efile your return today and schedule payment at a later date, like May 16 for instance.

What exactly is the point of waiting? Also, what if you are in a traffic accident before you had a chance to file and are laid up in a hospital?
by ipdiddly
Fri Apr 02, 2021 4:18 pm
Forum: Investing - Theory, News & General
Topic: Traditional to Roth
Replies: 18
Views: 1354

Re: Traditional to Roth

As it turns out, this was not an annual contribution at all - it's a rollover contribution which is a completely different situation. I won't comment further since it would not apply to this poster's situation. But you are correct that the money will be taxed....one way or the other...if the situat...
by ipdiddly
Fri Apr 02, 2021 4:03 pm
Forum: Investing - Theory, News & General
Topic: Traditional to Roth
Replies: 18
Views: 1354

Re: Traditional to Roth

When she funded the tIRA, did you claim a deduction on your tax return? This would make the funds in the tIRA "pre-tax." A Roth can only be funded with "after-tax" money, meaning you didn't take a deduction. If this is the case, then I think the only option is to do a "conv...
by ipdiddly
Fri Apr 02, 2021 1:29 pm
Forum: Investing - Theory, News & General
Topic: Traditional to Roth
Replies: 18
Views: 1354

Re: Traditional to Roth

When she funded the tIRA, did you claim a deduction on your tax return? This would make the funds in the tIRA "pre-tax." A Roth can only be funded with "after-tax" money, meaning you didn't take a deduction. If this is the case, then I think the only option is to do a "conve...
by ipdiddly
Fri Apr 02, 2021 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Refile 2020 1040 for $15.00 1099R income mistake?
Replies: 10
Views: 1449

Re: Refile 2020 1040 for $15.00 1099R income mistake?

For $3 in tax shortfall, I would wait for the IRS letter, then simply pay the amount they calculate as owed. The penalty should be minuscule. They may not even send a letter for such a small amount. The cost benefit is negative. I found myself in a similar situation last year when a 1099 arrived ver...
by ipdiddly
Fri Apr 02, 2021 12:52 pm
Forum: Investing - Theory, News & General
Topic: Common Cents On Roth Conversions
Replies: 32
Views: 3931

Common Cents On Roth Conversions

Nice article on the math of Roth v IRA v Taxable with some clear charts. https://seekingalpha.com/article/4417323-common-cents-roth-conversions?mail_subject=forget-tesla-these-2-high-yielding-stocks-win-no-matter-what&utm_campaign=nl-investing-income&utm_content=link-21&utm_medium=email&...
by ipdiddly
Thu Apr 01, 2021 11:31 am
Forum: Personal Investments
Topic: Prev Employ. 401k fund transfer
Replies: 17
Views: 963

Re: Prev Employ. 401k fund transfer

lakpr: I certainly don't mean to minimize anything. But if one is concerned about "insurance", there is umbrella insurance and the premiums may be less than the cost of maintaining a 401K plan. I'm not sure it's a great strategy to maintain multiple 401k accounts and multiple bank accounts...
by ipdiddly
Thu Apr 01, 2021 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Requesting confirmation on Form 709 Schedule B, Column C
Replies: 6
Views: 328

Re: Requesting confirmation on Form 709 Schedule B, Column C

I've only done one 709, which was difficult enough to wade through the IRS instructions. You've asked a great question, the answer to which will help anyone who needs to file a second 709. Unfortunately, I do not have the answer. I did quickly pull up the IRS instructions and I saw a convoluted set ...
by ipdiddly
Thu Apr 01, 2021 11:12 am
Forum: Personal Investments
Topic: Prev Employ. 401k fund transfer
Replies: 17
Views: 963

Re: Prev Employ. 401k fund transfer

2) I do have an IRA account with Vanguard from the time when I was an independent contractor The reason to move from Fid. to Van. is for consolidation purposes. I do have various funds and ETF's at vanguard and would like to have the prev. employer amount there as well so as to be easy for manageme...
by ipdiddly
Wed Mar 31, 2021 5:52 pm
Forum: Personal Investments
Topic: Prev Employ. 401k fund transfer
Replies: 17
Views: 963

Re: Transfer funds from IRA Fidelity to Vanguard

I will take the counterpoint to lakpr. I am not a fan of maintaining multiple accounts in multiple places, and certainly not in a former employer's plan. For me personally, I like the simplicity of having everything in one place. One IRA at one brokerage firm. Plus the IRA has many more investment o...
by ipdiddly
Wed Mar 31, 2021 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Filling Gift Tax Return Form 709--Is only one spouse the "donor"
Replies: 9
Views: 534

Re: Filling Gift Tax Return Form 709--Is only one spouse the "donor"

I sympathize with you. The instructions for form 709 and the completion of this form are NOT at all straightforward. (And I'm a retired lawyer, albeit not a tax specialist.) I transferred shares of stock to my son from a joint account. It was all done electronically going from the joint account to m...
by ipdiddly
Wed Mar 31, 2021 9:20 am
Forum: Investing - Theory, News & General
Topic: Option Trading Simple Quesion
Replies: 13
Views: 1099

Re: Option Trading Simple Quesion

I am not aware that wash sale rules apply to option transactions where you are buying and selling different options - either different strike price or different expiration date. (Perhaps someone can comment whether it would apply if you rebuy or resell the exact same option.) Wash sales apply when ...
by ipdiddly
Tue Mar 30, 2021 6:12 pm
Forum: Personal Investments
Topic: Buying dividend stocks
Replies: 36
Views: 3568

Re: Buying dividend stocks

Bonds are for protecting the wealth you already have. That's simply not true. Bonds can be as risky, if not more risky, than stocks. When interest rates rise, the value of those bonds falls. It makes no sense to invest in something yielding 1.5% if your principal is at risk of falling. I would stay...
by ipdiddly
Tue Mar 30, 2021 6:07 pm
Forum: Personal Investments
Topic: Optimizing inherited IRA withdrawls
Replies: 11
Views: 1008

Re: Optimizing inherited IRA withdrawls

You have been given a wonderful gift of this inherited IRA. Leave it alone! If invested properly, it will grow nicely over the next 30 years and you will have a nice nest egg on which to retire. Psychologically, people who have a windfall feel compelled to spend it. Resist that temptation. If nothin...
by ipdiddly
Tue Mar 30, 2021 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Returning Gifted Stocks to Original Owner (Tax/Basis Question)
Replies: 14
Views: 642

Re: Returning Gifted Stocks to Original Owner (Tax/Basis Question)

Assuming dad is competent to sign legal documents, you could create a revocable trust and place all his assets in the trust. Then the trustee (you or sibling or both) can manage the assets. Taxes would be paid under his SSN until he passes. Then you would need an EIN for the trust account. With a re...
by ipdiddly
Tue Mar 30, 2021 9:47 am
Forum: Personal Investments
Topic: VMATX - Too many eggs in one basket? (Tax-Free MA Muni Bond fund)
Replies: 5
Views: 396

Re: VMATX - Too many eggs in one basket? (Tax-Free MA Muni Bond fund)

From my personal point of view, it appears you are tax-averse (as are most of us), but this aversion is pushing you into a potentially high risk investment. I am not a believer in bond funds. The low yield is simply not worth the risk of principal loss. The SEC yield is 1.3%. What's the point? This ...
by ipdiddly
Tue Mar 30, 2021 9:28 am
Forum: Investing - Theory, News & General
Topic: In what condition, will international significantly overperform US?
Replies: 170
Views: 12522

Re: In what condition, will international significantly overperform US?

Today, I did a comparison to my previous asset allocation and discovered that I am underperform by more than 8 years of expenses because of International. So I am trying to re-exam the rational to have international in the first place. Back in the 80's or early 90's, when my portfolio of investment...
by ipdiddly
Mon Mar 29, 2021 7:03 pm
Forum: Investing - Theory, News & General
Topic: Question regarding AAPL and Wellesley in taxable or tax-exempt account.
Replies: 15
Views: 1294

Re: Question regarding AAPL and Wellesley in taxable or tax-exempt account.

Whether today's price is high or low or just right is irrelevant. No. The price you pay for an investment is absolutely relevant - in fact it is the most relevant thing possible we can control when investing. I think you misunderstood. No one is talking about buying AAPL. The OP already owns AAPL. ...
by ipdiddly
Mon Mar 29, 2021 1:05 pm
Forum: Investing - Theory, News & General
Topic: Option Trading Simple Quesion
Replies: 13
Views: 1099

Re: Option Trading Simple Quesion

I am not aware that wash sale rules apply to option transactions where you are buying and selling different options - either different strike price or different expiration date. (Perhaps someone can comment whether it would apply if you rebuy or resell the exact same option.) It looks like you essen...