1%ers: What are you doing with your $$ before Dec 31?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're converting to Roth IRAs, adding $26k per child to 529 plans and probably selling off stocks with a lot if capital gains. Anyone else making money moves before the end of the year?

How can you be 1%ers and eligibile to open a Roth? We're 5%ers and still not eligible for Roth. Are you talking about converting a traditional and taking the tax hit in 2012?

Yes, converting and paying $350,000 tax in 2012 on the conversion.

Just to be straight-- you have a million dollars in an IRA and you expect to be in the highest income tax bracket in retirement and you've decided that you can save on taxes by using a loophole that allows you to convert to a Roth even though your income is above the limits for Roth contribution.

Do you want anyone to feel sorry for you? Do you think this is the place where the super-rich come to whine about how much they have to pay in tax?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're converting to Roth IRAs, adding $26k per child to 529 plans and probably selling off stocks with a lot if capital gains. Anyone else making money moves before the end of the year?

How can you be 1%ers and eligibile to open a Roth? We're 5%ers and still not eligible for Roth. Are you talking about converting a traditional and taking the tax hit in 2012?

Yes, converting and paying $350,000 tax in 2012 on the conversion.

That's the dumbest thing I've ever heard. But thanks for your contribution.

Do you earn >$1M a year and have a net worth >$5M? Are you a financial advisor? Will your total taxes increase by $50,000 to $100,000 next year? I'm just trying to guesstimate the depth of your knowledge.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're converting to Roth IRAs, adding $26k per child to 529 plans and probably selling off stocks with a lot if capital gains. Anyone else making money moves before the end of the year?

How can you be 1%ers and eligibile to open a Roth? We're 5%ers and still not eligible for Roth. Are you talking about converting a traditional and taking the tax hit in 2012?

Yes, converting and paying $350,000 tax in 2012 on the conversion.

That's the dumbest thing I've ever heard. But thanks for your contribution.

Do you earn >$1M a year and have a net worth >$5M? Are you a financial advisor? Will your total taxes increase by $50,000 to $100,000 next year? I'm just trying to guesstimate the depth of your knowledge.

I am not that poster, but if those are the only people you want to hear from, then maybe you shouldn't be trolling for financial advice on an anonymous parenting forum.

[Anonymous]

Anonymous wrote:Absolutely nothing.

+1

[Anonymous]

And maybe random anonymous 99% parents shouldn't be wasting time opining on questions to 1%ers. And as I read OPs question, it wasn't asking for advice.

[Anonymous]

Buying a second home low from some one panicking and wanting to unload. Gifting money to the kids.

[Anonymous]

Anonymous wrote:Buying a second home low from some one panicking and wanting to unload. Gifting money to the kids.

We've been looking for such a seller for 15 years! Never seems to work out. But, yes, gifting money to the kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is pretty gross.

x 1,000,000...

Definitely.

[Anonymous]

Anonymous wrote:And maybe random anonymous 99% parents shouldn't be wasting time opining on questions to 1%ers. And as I read OPs question, it wasn't asking for advice.

+1

[Anonymous]

If you people run through all your kids and still need to unload some gift money, I will gladly step up to the plate and take some of your burden.

[Anonymous]

When transaction fees are 10 dollars or less, the "paying transaction costs x2" is meaningless. You can bet that most high income/1% folks have already sold, or will sell into strength over the balance of the calender year.

With interest rates low and pending capital gains and other taxes set to rise, there is really no safe place to put a nest egg to grow. This is something congress and those responsible for tax policy right now don't seem to get. There is significant corporate and individual money sitting on the sidelines that will continue to stay out of the system until there is a means to getting it to grow.

No one wants to take personal risks (ie starting a new business or investing in an existing one), no one wants to have higher capital gains liabilities and no one wants to invest in long term investments at less than 1% yield.

Transaction costs are not meaningless and will impact returns. Most 1%er have a portfolio with an over all management strategies that reduces cost and maximizes returns within a risk matrix. So, no they will not sell off but adjust their buying going forwards. As for your other statements, the facts say otherwise. When people see opportunities(corporate or starting a new business), they do it. There was a lot of business done in this country with much high tax rates.

[Anonymous]

We have a decent amount of stock that have gains of 25-600%. We'll probably sell that to get 2012 cap gain tax rate.

[Anonymous]

Anonymous wrote:

When transaction fees are 10 dollars or less, the "paying transaction costs x2" is meaningless. You can bet that most high income/1% folks have already sold, or will sell into strength over the balance of the calender year.

With interest rates low and pending capital gains and other taxes set to rise, there is really no safe place to put a nest egg to grow. This is something congress and those responsible for tax policy right now don't seem to get. There is significant corporate and individual money sitting on the sidelines that will continue to stay out of the system until there is a means to getting it to grow.

No one wants to take personal risks (ie starting a new business or investing in an existing one), no one wants to have higher capital gains liabilities and no one wants to invest in long term investments at less than 1% yield.

Transaction costs are not meaningless and will impact returns. Most 1%er have a portfolio with an over all management strategies that reduces cost and maximizes returns within a risk matrix. So, no they will not sell off but adjust their buying going forwards. As for your other statements, the facts say otherwise. When people see opportunities(corporate or starting a new business), they do it. There was a lot of business done in this country with much high tax rates.

+1,000 And a whole hell of a lot of wealth built.

OP -- how old are you? Do you remember the Clinton years?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're converting to Roth IRAs, adding $26k per child to 529 plans and probably selling off stocks with a lot if capital gains. Anyone else making money moves before the end of the year?

How can you be 1%ers and eligibile to open a Roth? We're 5%ers and still not eligible for Roth. Are you talking about converting a traditional and taking the tax hit in 2012?

Yes, converting and paying $350,000 tax in 2012 on the conversion.

That's the dumbest thing I've ever heard. But thanks for your contribution.

Do you earn >$1M a year and have a net worth >$5M? Are you a financial advisor? Will your total taxes increase by $50,000 to $100,000 next year? I'm just trying to guesstimate the depth of your knowledge.

No, but if I did, I would try to focus more on all the blessings I have, rather than freaking out because my enormous income will be reduced marginally by future taxes.

[Anonymous]

Cause I feel a tech boom coming just 'round the corner. . . .