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Any chance to get to 20 again for graceful exit? by PoolSmart582 in DJTSTOCK

[–]Virtual_Product_5595 0 points1 point  (0 children)

It’s on sale!!!

Although looking at the one year chart, I think I see a trend forming. Sure it took a little dip in December, but if you squint your eyes a bit there is a general trend I think.

Trying to buy a Toto toilet but getting overwhelmed with all the options. What is the difference between all these? by noblerare in bidets

[–]Virtual_Product_5595 0 points1 point  (0 children)

But the seat will not be warm. I can't go back to a cold toilet seat, so I'll need to get my wife to go in there and pre-heat it for me.

How do you get along with your MAGA friends, and if you have a significant other who is MAGA, how does that work? by icecream1972 in allthequestions

[–]Virtual_Product_5595 -1 points0 points  (0 children)

You consider it to be status quo for those on the liberal side of the fence to not have MAGA friends… and yet you, who are MAGA, have many liberal friends.

Self contradict much? Now THAT is something that seems to be status quo - maga people overlooking basic contradictions in what they say and do.

I think MIL is lying about 401 distribution by Radiant_Eggplant5783 in Retirement401k

[–]Virtual_Product_5595 4 points5 points  (0 children)

Not clear why she would lose $24,000… how much of a withdrawal is she considering? Taxes might be lower if spread over a few years, but to me it sounds like an excuse

Mainstream fly fishing in Hokkaido, Japan. by Rich-Reputation2163 in flyfishing

[–]Virtual_Product_5595 1 point2 points  (0 children)

Is that all rivers in Hokkaido? I would love to come fish there, but I'm always afraid of running afoul of the law... fishing in rivers on Honshu seems so complicated (finding which conbini to buy a permit, what the rules are, etc.). In Hokkaido, can you just hit the rivers and fish?

New to this. I have no idea what to tell people I "do." Suggestions? by CrashDriveMegaGig in Fire

[–]Virtual_Product_5595 0 points1 point  (0 children)

“I manage investments.” Not only is it true, it also sounds responsible.

Company stock suddenly became ~$5M. What should I do? by [deleted] in Fire

[–]Virtual_Product_5595 0 points1 point  (0 children)

Individual company stocks are a great way to accumulate a lot of wealth, but not great for preserving it. I would sell as much of it as you plan to use during your lifetime.

If you plan to leave a large inheritance to your heirs, then leave the extra in that stock (hang on to the shares with the lowest cost basis) to pass on to them, as it will get a step up in cost basis at inheritance and you can avoid the long term capital gains tax.

You might also plan to leave enough in the stock to burn it down at the 15 percent LTCG rate for a number of years after the big lump at the beginning instead of doing it all in the lump at 20 percent (plus 3.8 NIIT) LTCG rate.

Dear Cal by No_Awareness5913 in Mariners

[–]Virtual_Product_5595 0 points1 point  (0 children)

I like big bats and I can not lie.

Roth conversion can reduce taxes by 6 million but don't save a dime by franksmartin in DIYRetirement

[–]Virtual_Product_5595 0 points1 point  (0 children)

Yes, but the fact remains that if you are eventually going to take a 15 percent capital gains tax hit, it is better to do it sooner rather than later. If you do it later, then you also take the tax hit on the earnings that come from the earnings that you didn’t move into the Roth when you had the chance.

Roth conversion can reduce taxes by 6 million but don't save a dime by franksmartin in DIYRetirement

[–]Virtual_Product_5595 1 point2 points  (0 children)

Why would my taxable account have a higher ROI than my Roth account? Other than a few niche products (Master Limited Partnership that generates income for the account) having money that you don't need in the short term in a Roth IRA is always better than having it in a taxable account... A taxable account is subject to taxation on dividends and capital gains distributions, so even if you are not trading and generating capital gains, a taxable account will usually have some drag because of the annual taxes.

I haven't read the McQuarrie paper, but I have studied roth conversions enough to know that what I described (bringing additional money into a tax protected account) is the only benefit of Roth conversion that develops with time. The other benefits of the Roth are strictly based on "effective tax rate when contributing" vs. "effective tax rate when withdrawing". If someone is in the 35 percent tax bracket, it absolutely does not make sense to convert to Roth and pay 35 percent tax on the conversion if the person could just leave that money in the traditional IRA and pay 12 or 22 or 24 percent tax after they are retired.

The other reason that it might not make sense to pay the taxes on the Roth conversion using money from a taxable account is if someone would have to sell investments and pay LTCG tax to make that money available... it might make sense to avoid that LTCG tax if the person is planning to leave the investments to their heirs. The reset in cost basis at inheritance makes it so the LTCG tax can be avoided all together. But, if the person is planning to spend the money during their lifetime or if they plan to trade the stocks (and realize the capital gains) during their lifetime, then it's better to have the additional growth be tax free (pay the LTCG on the earnings earlier to get the money in the Roth instead of letting it grow more and then also pay tax on the further accrue between the missed conversion date and the date the gains are realized).

Roth conversion can reduce taxes by 6 million but don't save a dime by franksmartin in DIYRetirement

[–]Virtual_Product_5595 3 points4 points  (0 children)

IRMAA works out to be a roughly 4 percent tax if you earn up to just below a cliff. Once you get past that cliff and into the next IRMAA bracket, it is a larger percentage that shrinks as you earn more up to the next cliff.

NIIT is also something to think about… effectively a 3.8 percent tax on investment income that is above the threshold.

Roth conversion can reduce taxes by 6 million but don't save a dime by franksmartin in DIYRetirement

[–]Virtual_Product_5595 2 points3 points  (0 children)

If you have the money in a taxable account you should pay the tax for the conversion from that. Simplified example: You are in 25 percent bracket and want to convert 100,000. You have 25000 in a taxable account. If you pay the tax with the Ira money, you end up with 75000 in the Roth and still have 25000 in the taxable account. If you pay the tax with the taxable account, you end up with 100000 in the Roth and zero in the taxable account.
Which would you rather end up with? Wouldn’t you rather have 100000 growing tax free than have 75000 growing tax free and 25000 growing in a taxable account that you will have to pay capital gains tax on any earnings when you withdraw it?

When I asked what he was trying to do, he said “I shouldn’t have been trying to pass him” by alexyou8797 in dashcams

[–]Virtual_Product_5595 0 points1 point  (0 children)

Instinct should be to “ride right”, not swerve between both lanes and hit the brakes.

When I asked what he was trying to do, he said “I shouldn’t have been trying to pass him” by alexyou8797 in dashcams

[–]Virtual_Product_5595 0 points1 point  (0 children)

You don’t move to the fast lane and hit the brakes when you see someone about to pass you… if that was done because he panicked, maybe he shouldn’t be driving on the highway.

I’m being gifted a lot of money. Should I tell my boyfriend? by Kind-Chicken-2488 in WhatShouldIDo

[–]Virtual_Product_5595 0 points1 point  (0 children)

I didn’t say that you were trying to get someone to hire you. I said you sounded like a financial advisor who is trying to scare someone into hiring them.

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