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Xguard86 posted:If they move, you're moving. You can't elect to stay. H110Hawk posted:This isn't something you have a choice in, but if it's Amazon you are likely going to get a better deal at Fidelity by a few hundredths of a percent. Also someone at Fidelity just got a shockingly high bonus.  Thanks folks, as you can tell I'm clueless.Not Amazon 
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Oct 16, 2019 17:15
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H110Hawk posted:I don't think I saw an answer to this. Bueller? Maybe try the tax thread? https://forums.somethingawful.com/showthread.php?threadid=3394641
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Oct 16, 2019 19:50
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Not sure if this is the best place to ask but, I have a home mortgage balance of 100k with 5 years left from a 15 year at 4.2% interest. A family member offered me a personal loan for 100k at 3.5 percent. Putting aside the normal warnings like straining relationships and all that, does it make sense financially given that I am in the home stretch of this mortgage? Do you pay less interest towards the end that would make this a bad move? Note I don't declare mortgage interest as a tax deduction.
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Oct 16, 2019 22:54
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3.5% is better than 4.2%. The only real issue is making sure the loan is amortized correctly. And based on your question you probably need to look up what that means.
nelson fucked around with this message at 23:03 on Oct 16, 2019 |
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Oct 16, 2019 22:58
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nelson posted:3.5% is better than 4.2% Sigh yes but you pay more principal at the end of the mortgage, does that have any effect?
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Oct 16, 2019 23:03
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FateFree posted:Sigh yes but you pay more principal at the end of the mortgage, does that have any effect? It means you need to set up an amortization schedule so youre not accidentally paying more and your loan still gets paid off correctly.
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Oct 16, 2019 23:07
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FateFree posted:Not sure if this is the best place to ask but, I have a home mortgage balance of 100k with 5 years left from a 15 year at 4.2% interest. A family member offered me a personal loan for 100k at 3.5 percent. Putting aside the normal warnings like straining relationships and all that, does it make sense financially given that I am in the home stretch of this mortgage? Do you pay less interest towards the end that would make this a bad move? Note I don't declare mortgage interest as a tax deduction. I wouldn't go through the hassle for the back third of your loan. You've already paid most of the interest.
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Oct 16, 2019 23:13
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Edit: cant read you already answered that you aren't itemizing. If you are itemizing interest on your taxes it might be a little harder to prove its a real loan.
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Oct 16, 2019 23:16
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I had a signing bonus that was paid out over two years. Starting April 2017 I invested the same amount in Betterment every other Monday -- 66 equal deposits. I don't even remember why I picked them over buying VTSAX. Betterment just added a cool new comparison so I can see how much I lost by using them vs. investing in index funds, right on their site. So useful! Annualized, that's 7.6% vs. 12.1% return. Maybe I'll stop now.
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Oct 17, 2019 05:28
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KS posted:I had a signing bonus that was paid out over two years. Starting April 2017 I invested the same amount in Betterment every other Monday -- 66 equal deposits. I don't even remember why I picked them over buying VTSAX. This time I got it! Amazon? (This is hilarious. We should put it in the OP.)
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Oct 17, 2019 05:35
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H110Hawk posted:I don't think I saw an answer to this. Bueller? Link: https://taxmap.irs.gov/taxmap/pubs/p550-025.htm#TXMP212cbd13 You bought 100 shares of M stock on September 21, 2017, for $5,000. On December 14, 2017, you bought 50 shares of substantially identical stock for $2,750. On December 21, 2017, you bought 25 shares of substantially identical stock for $1,125. On January 4, 2018, you sold for $4,000 the 100 shares you bought in September. You have a $1,000 loss on the sale. However, because you bought 75 shares of substantially identical stock within 30 days before the sale, you cannot deduct the loss ($750) on 75 shares. You can deduct the loss ($250) on the other 25 shares. The basis of the 50 shares bought on December 14, 2017, is increased by two-thirds (50 75) of the $750 disallowed loss. The new basis of those shares is $3,250 ($2,750 + $500). The basis of the 25 shares bought on December 21, 2017, is increased by the rest of the loss to $1,375 moana fucked around with this message at 11:47 on Oct 17, 2019 |
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Oct 17, 2019 11:39
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moana posted:Yes, it matters. However much you bought in the last month will be disallowed as a wash sale (in that you sold another lot after less than 30 days of buying that lot), the 30 day period looks back as well as forward. Just wait on ur butt until a month has passed after buying, or do the wash sale math to increase your basis and oh that just gives me a headache thinking about having to remember. Ugh this again. Maybe Im still confused. I buy vtsax every month in a taxable account. I thought that i could sell the lots that are several months old for purposes of TLH, then exchange to something else, no? Otherwise how could anyone just buying index funds ever TLH? Edit post your edit: ok good thanks I think were saying the same thing. Residency Evil fucked around with this message at 11:53 on Oct 17, 2019 |
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Oct 17, 2019 11:49
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Residency Evil posted:Ugh this again. Maybe Im still confused. I buy vtsax every month in a taxable account. I thought that i could sell the lots that are several months old for purposes of TLH, then exchange to something else, no? Otherwise how could anyone just buying index funds ever TLH? Edit: and now I'm thinking h110 is ok because he sold the short term holding as well, so that's not a replacement position even if it was bought within 30 days. Might still trigger a wash sale just because it's all done automatically. moana fucked around with this message at 12:27 on Oct 17, 2019 |
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Oct 17, 2019 12:03
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I'm transferring from a traditional IRA to a Roth IRA since I'm now income limited from getting any tax breaks on the traditional. My accountant said that it'd be best to offset the tax I'd pay on the conversion by stretching it out over time. It'd be around $2500/year for 30+ years, though - would I be better served by doing it all at once and doing some kind of Tax Stuff to use the taxes I paid on the conversion to offset something else? I honestly have no clue if there's a benefit in it, and if it's one transfer a year, so be it. It's all internal within Vanguard, from the same target date fund in the trad to the same in the Roth.
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Oct 17, 2019 15:11
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moana posted:I mean, you can just accept the wash for the smaller lot (assuming you sell much much more to TLH than is automatically invested each month) And apparently even if you do accidentally wash sale, vanguard makes it easy to keep track of so it's only slightly annoying. Even if it triggers a wash sale, it won't matter because the adjusted basis will be moved to the other remaining shares that are sold the same day. Wash sales don't make you permanently lose that loss... it just moves it to the replacement shares. But if you sell them all, you'll be fine. Wherever the loss is moved to, it will all be the same come tax time.
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Oct 17, 2019 15:33
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moana posted:Edit: and now I'm thinking h110 is ok because he sold the short term holding as well, so that's not a replacement position even if it was bought within 30 days. Might still trigger a wash sale just because it's all done automatically. That's the part I am wondering about - I am selling all lots I bought within 30 days. It seems different from the examples in a material way. Probably need to just bite the bullet and ask my tax professional.
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Oct 17, 2019 15:36
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Beach Bum posted:My company's 401(k) provider is currently Vanguard, about which I consistently read positive things, not to mention they are a client-owned company (or so I have read). For 2020 we are switching to Fidelity. Might I hold my current investments with Vanguard, or should just go ahead and let the Company move everything over? Just as an FYI USAA sold their brokerage arm to Charles Schwab and while they say there won't be any changes to the program I am considering moving my investments.
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Oct 17, 2019 15:38
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80k posted:Even if it triggers a wash sale, it won't matter because the adjusted basis will be moved to the other remaining shares that are sold the same day. Wash sales don't make you permanently lose that loss... it just moves it to the replacement shares. But if you sell them all, you'll be fine. Wherever the loss is moved to, it will all be the same come tax time.
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Oct 17, 2019 16:48
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What kind of asset allocation (stocks/bonds) do you all have in your taxable investment accounts? I know there isn't a right answer for this, just want to get some thoughts. Just in the interest of sharing my own allocation I'm sitting at 90/10 at 32, more or less treating it as additional retirement funds, but starting to reconsider whether I'll need to draw down in the next decade for kids etc (don't have any yet, but plan to). Thanks, y'all
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Oct 18, 2019 00:33
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33, 100% stock. Mostly. VTSAX, some VTIAX
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Oct 18, 2019 00:34
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100% stock. Though I don't plan to sell any taxable unless I'm in some dire emergency. So it's basically extra money I do not think about.
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Oct 18, 2019 00:37
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Eldred posted:What kind of asset allocation (stocks/bonds) do you all have in your taxable investment accounts? I know there isn't a right answer for this, just want to get some thoughts. 37. 35% VFORX, 35% VTSAX, 10% VXUS, 10% PRU (gifted), 10% VBTLX. It's long-term investing/retirement, and my mix is a bit weird.
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Oct 18, 2019 00:39
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Mu Zeta posted:100% stock. Though I don't plan to sell any taxable unless I'm in some dire emergency. So it's basically extra money I do not think about. Same here on it basically being the back up to my emergency fun. It is really for early retirement of some kind.
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Oct 18, 2019 00:42
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 45 and looking to retire in the next 5.
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Oct 18, 2019 00:44
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I'm starting a new job in which one of the signing perks was $97k in RSUs. The stock is public, but the vesting schedule is a 1 year cliff with a 3 year total vesting period. My plan is to sell off as shares vest. I have to do a bit more reading, but my understanding of the tax situation is that I'll owe taxes on the stocks as they vest and then either short/long term cap gains on any gains above that (when I sell, with the initial price at grant being my basis). First, is my understanding of the tax situation correct? Second, this makes the most sense, yeah? Obviously I want to diversify my portfolio away from being so focused in my own company (parent company, actually), but I'm not sure if it makes sense to wait a year due to tax considerations. There's a 7% difference between my marginal and the LCTG rate.
Hoodwinker fucked around with this message at 01:03 on Oct 18, 2019 |
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Oct 18, 2019 00:58
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Hoodwinker posted:I'm starting a new job in which one of the signing perks was $97k in RSUs. The stock is public, but the vesting schedule is a 1 year cliff with a 3 year total vesting period. My plan is to sell off as shares vest. I have to do a bit more reading, but my understanding of the tax situation is that I'll owe taxes on the stocks as they vest and then either short/long term cap gains on any gains above that (when I sell, with the initial price at grant being my basis). First, is my understanding of the tax situation correct? Second, this makes the most sense, yeah? Obviously I want to diversify my portfolio away from being so focused in my own company (parent company, actually), but I'm not sure if it makes sense to wait a year due to tax considerations. There's a 7% difference between my marginal and the LCTG rate. Sell sell sell!  Eldred posted:What kind of asset allocation (stocks/bonds) do you all have in your taxable investment accounts? 100%ish International stock. This is part of my overall allocation of 70/30/0 domestic USA stock, international stock, and bonds.
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Oct 18, 2019 01:04
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spwrozek posted:33, 100% stock. Mostly. VTSAX, some VTIAX I am this in every way.
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Oct 18, 2019 01:31
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Residency Evil posted:I am this in every way.
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Oct 18, 2019 01:31
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I've got a little (like 10%) in bonds cause I thought I'd need it for grad school but didn't. Really just unsure what to do with my money after Ira/401k/hsa maxing so I just keep throwing it in there instead of paying off mortgage.
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Oct 18, 2019 02:29
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Hoodwinker posted:I'm starting a new job in which one of the signing perks was $97k in RSUs. The stock is public, but the vesting schedule is a 1 year cliff with a 3 year total vesting period. My plan is to sell off as shares vest. I have to do a bit more reading, but my understanding of the tax situation is that I'll owe taxes on the stocks as they vest and then either short/long term cap gains on any gains above that (when I sell, with the initial price at grant being my basis). First, is my understanding of the tax situation correct? Second, this makes the most sense, yeah? Obviously I want to diversify my portfolio away from being so focused in my own company (parent company, actually), but I'm not sure if it makes sense to wait a year due to tax considerations. There's a 7% difference between my marginal and the LCTG rate.
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Oct 18, 2019 02:46
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Small White Dragon posted:With most RSUs, I believe they're taxed when they vest, meaning there's no significant gain to be had by holding on.
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Oct 18, 2019 03:14
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Hoodwinker posted:This is what I'm seeing. There's taxation on the initial vesting and then the usual short/long term cap gains tax on any gains between when it vests and when you sell, so I'm definitely going to just sell as soon as they've vested. Some companies that give big RSU packages will also have a program that you can enroll in that will automatically sell the vested shares as soon as possible. It's worth looking into.
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Oct 18, 2019 03:18
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Solumin posted:Some companies that give big RSU packages will also have a program that you can enroll in that will automatically sell the vested shares as soon as possible. It's worth looking into. Or also "sell to cover" estimated taxes. Regardless, my opinion is sell every last bit of equity as it vests so you can diversify.
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Oct 18, 2019 03:27
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Taxable? 100% VTSAX. I'm 35.
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Oct 18, 2019 03:54
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Hoodwinker posted:I'm starting a new job in which one of the signing perks was $97k in RSUs. The stock is public, but the vesting schedule is a 1 year cliff with a 3 year total vesting period. My plan is to sell off as shares vest. I have to do a bit more reading, but my understanding of the tax situation is that I'll owe taxes on the stocks as they vest and then either short/long term cap gains on any gains above that (when I sell, with the initial price at grant being my basis). First, is my understanding of the tax situation correct? Second, this makes the most sense, yeah? Obviously I want to diversify my portfolio away from being so focused in my own company (parent company, actually), but I'm not sure if it makes sense to wait a year due to tax considerations. There's a 7% difference between my marginal and the LCTG rate. Your understanding sounds correct. With the 'parent company' bit, I assume this is goog? Here's a list of things to check out when you join: * Like solumin mentioned: the autosale program. It auto sells RSUs within ~2 days of vesting. Remember to re-enroll in autosale every year. * Mega-backdoor aka 'in-plan-rollover'. Extra $27k tax advantaged space. You can even hit a checkbox to automate this now. * you can add a long-term partner to your health insurance without actually being married. this has awkward implications for HSA money though, as it can only be spent on a spouse.* speaking of, the high deductible + HSA plan is probably the best health option. The LPFSA can be worth it if you know you'll be exceeding the health deductible, or if you have some dental/vision work planned or something.
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Oct 18, 2019 12:16
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Illusive gently caress Man posted:Your understanding sounds correct. With the 'parent company' bit, I assume this is goog? Here's a list of things to check out when you join:  I'm married and I'm absolutely not going to be going with the HDHP option here.
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Oct 18, 2019 14:10
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My father in law cashed out his teacher retirement/pension about ten years ago to start a failed business and now at retirement age could buy back his retirement/pension for 150K. Is this a good idea? What are his options for financing this? He would still work as a teacher and collect about 30K from this retirement a year on top of a slightly smaller first year teacher salary that he could use to pay back some sort of loan. Just curious how common is this situation?
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Oct 18, 2019 17:12
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Spending $150k for $30k in guaranteed annual returns is a screamingly good deal.
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Oct 18, 2019 17:28
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Zfuut posted:My father in law cashed out his teacher retirement/pension about ten years ago to start a failed business and now at retirement age could buy back his retirement/pension for 150K. Is this a good idea? What are his options for financing this? He would still work as a teacher and collect about 30K from this retirement a year on top of a slightly smaller first year teacher salary that he could use to pay back some sort of loan. Just curious how common is this situation? He should talk to a bank, like walk in and ask to speak to someone about a specialty loan, and bring his paperwork from his pension. They will loan him the money. Mortgage his house if he has to.
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Oct 18, 2019 17:44
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Hi yes I would like to pay any amount of money for 20% of that capital per annum in perpetuity. PS - Make sure that is actually the deal that's being laid out.
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Oct 18, 2019 18:48
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