Anonymous
11/14/2012 15:46
Subject: 1%ers: What are you doing with your $$ before Dec 31?
Jeff, another poster in favor of a finance forum!! P
Anonymous
11/14/2012 15:17
Subject: 1%ers: What are you doing with your $$ before Dec 31?
Nowhere - this is a short-term correction and it will pass. Hedge fund managers who use computer trading need little reason to move massive quantities of shares. We are not going over any fiscal cliff. The Republican are not crazy enough to let that happen. If they do not become more of a centrist party in a decade they will cease to exist. For some reason Goldwater and Reagan were able to unify a strange coalition of disaffected Vietnam War supporters, Christian Fundamentalists, Reagan Democrats, and the ultra-rich into a very powerful political force which has had a "take no prisoners" attitude and which has dominated U.S. politics during the past 32 years. Thankfully that era is now coming to an end. The Reagan Era and its aftermath is finally ending and the proof was just demonstrated during our recent election. The Reagan Coalition and their children who came to political awareness in the 1980s were a large and powerful coalition, but our recent election proved that the torch has now been passed to a new generation. The old mantras of the Reagan Era are now irrelevant and if the Republican Party refuses to move politically towards the center they too will become irrelevant.
The Republicans may be crazy, but they are not stupid and they will not drive us over the fiscal cliff just to prevent the mega-wealthy from paying their fair share of our national burdens. They won't do it because they now know their base is not large enough to catch them once they go over the cliff.
I'm glad I have invested in Berkshire Hathaway. They have more than $40 billion in cash and they are just waiting for the right opportunity to use it. The economy is expanding, but the stock market is declining. This is turning into a perfect buying opportunity for a company like BRK-A and BRK-B which is fat with cash to make profitable acquisitions while others are worrying about the man-made hype and mania of the fiscal cliff.
The Republicans may be crazy, but they are not stupid and they will not drive us over the fiscal cliff just to prevent the mega-wealthy from paying their fair share of our national burdens. They won't do it because they now know their base is not large enough to catch them once they go over the cliff.
I'm glad I have invested in Berkshire Hathaway. They have more than $40 billion in cash and they are just waiting for the right opportunity to use it. The economy is expanding, but the stock market is declining. This is turning into a perfect buying opportunity for a company like BRK-A and BRK-B which is fat with cash to make profitable acquisitions while others are worrying about the man-made hype and mania of the fiscal cliff.
Anonymous
11/14/2012 11:57
Subject: 1%ers: What are you doing with your $$ before Dec 31?
There's actually no wash sale rule for profits-- that is to say if you have, say, Apple stock that has appreciated, the IRS doesn't mind if you sell it, pay capital gains tax on the gain, and then purchase new shares at the higher market price.
On the other hand, if you have, say, Citibank stock that has lost value, there are rules that prevent you from selling, claiming a loss, and then immediately purchasing the same stock at a lower price (which are called the wash sale rules).
On the other hand, if you have, say, Citibank stock that has lost value, there are rules that prevent you from selling, claiming a loss, and then immediately purchasing the same stock at a lower price (which are called the wash sale rules).
Anonymous
11/14/2012 10:33
Subject: 1%ers: What are you doing with your $$ before Dec 31?
Anonymous wrote:The title of this thread is unfortunate, because there are tax strategies that can benefit anyone, not just you 1%ers. If you search online, there are dozens and dozens of articles suggesting strategies. https://www.google.com/search?hl=en&gl=us&tbm=nws&q=tax+strategy+2012&oq=tax+strategy+2012&gs_l=news-cc.3..43j43i400.16170.24511.0.24979.17.5.0.12.0.0.136.357.4j1.5.0...0.0...1ac.1.W9iosCcATdk#hl=en&safe=off&tbo=d&gl=us&tbm=nws&sclient=psy-ab&q=tax+strategy+2012+year+end+estate+capital+&oq=tax+strategy+2012+year+end+estate+capital+&gs_l=serp.3...8401.8401.5.9066.1.0.1.0.0.0.0.0..0.0...0.0...1c.1.SsMuaovmlHA&pbx=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.&fp=92b6671ad676249a&bpcl=38093640&biw=1400&bih=937
Some of the most common for general application:
1. Get paid in 2012 instead of 2013. Since marginal tax rates likely will increase in 2013, you'll pay less tax in 2012, albeit sooner. See if your employer will pay any year end bonus in Dec 2012 rather than Jan 2013, get an advance on your paycheck, or maybe cash in vacation time.
2. Swap around any investments you have in taxable accounts, so you can "lock in" current long-term capital gains tax rates. Tax rates on long-term capital gains are expected to increase in 2013 and beyond, so sell those investments now and re-purchase other comparable (but not identical) investments. You will pay more taxes in the short term, but (maybe) will pay less than you'd pay later in the future. Bonus points if you can offset sales of gainers against losers, because you can avoid taxes entirely with this hedge move.
3. Make gifts now to minimize future estate taxes. Estate tax rates likely will increase in 2013. This might not make sense if you expect to live several more years, unless your estate is enormous. If your estate is that enormous, you surely can pay someone more informed than I am to give you advice.
4. Take advantage of itemized deductions now. Some of those itemized deductions are expected to be reduced in 2013, so get the maximum tax benefit now. For example, if you're planning to give $1000 to your favorite charity, give it in Dec 2012 rather than Jan 2013.
I'm no investment professional, and I'm just repeating what I've been reading lately, so don't follow this advice blindly. Do your own research. Good luck.
Sam2
Best post of this whole thread, IMHO. Thanks, Sam2!
Anonymous
11/14/2012 01:32
Subject: Re:1%ers: What are you doing with your $$ before Dec 31?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:
All things considered, we're better off if teens are saving for retirement, don't you think?
And if they work. I'm all for teens (inclduing wealthy teens) having jobs in the summer, as opposed to non-stop travel, camps and hanging out. Good job, 1% parents!
Wait. One of you pointed out that the Roth IRA can be withdrawn at any time before retirement. That really the only purpose is to let their summer job earnings accumulate earnings tax free until the kid feels like withdrawing it.
So let's be clear here: we're not teaching kids about saving for retirement -- instead we're teaching them about tax strategies. Guess it's something a 1% kid would need to know about.
Whatever you read, you misread or someone misspoke. Because that's not how Roth works.
The post was misread. Well, we tried.
Anonymous
11/13/2012 23:19
Subject: 1%ers: What are you doing with your $$ before Dec 31?
(sigh) ya know this Roth stuff is pretty basic and the kind of advice you'd read in the WSJ, Barron's, and even in the business page of the Post. That it's got some of you all wound up like its taking a suitcase of cash to the Caymans really says more about you and your financial literacy.
Why do a Roth for teenagers? so they learn early about the power of saving and compounding. I wish I'd learned in my teens--i'd be much better off for it. This is not some secret club kind of sophisticated strategy--in fact my plumber is doing it for his kid who helps on the job.
btw I think it's safe to assume, by now, we've driven off the OP.
Why do a Roth for teenagers? so they learn early about the power of saving and compounding. I wish I'd learned in my teens--i'd be much better off for it. This is not some secret club kind of sophisticated strategy--in fact my plumber is doing it for his kid who helps on the job.
btw I think it's safe to assume, by now, we've driven off the OP.
Anonymous
11/13/2012 23:00
Subject: Re:1%ers: What are you doing with your $$ before Dec 31?
Anonymous wrote:Anonymous wrote:Anonymous wrote:
I don't think pp was a jerk but was stating facts and simply annoyed with others' disregard for them. This isn't an emotional thread. It's fact-based.
Oh please. If you really think this thread is fact-based rather than emotional, then stop posting patronizing stuff about homework and ignorant statements. Better yet, stop boasting about your $$ on DCUM. Then you might actually be able to convince yourself, and us, that you're a mature person.
Not the posters you're terrorizing but I think you should get a glass of wine and go back to the general parenting forum. Causethe personal finance stuff really gets you worked up. [/b]
Nope, no ad hominem attacks here, just mature, fact-based discussion.
To quote another PP: keep it up ladies, this makes us want to tax your rude, greedy, rude asses even more.
Anonymous
11/13/2012 22:42
Subject: Re:1%ers: What are you doing with your $$ before Dec 31?
Anonymous wrote:Anonymous wrote:Anonymous wrote:
All things considered, we're better off if teens are saving for retirement, don't you think?
And if they work. I'm all for teens (inclduing wealthy teens) having jobs in the summer, as opposed to non-stop travel, camps and hanging out. Good job, 1% parents!
Wait. One of you pointed out that the Roth IRA can be withdrawn at any time before retirement. That really the only purpose is to let their summer job earnings accumulate earnings tax free until the kid feels like withdrawing it.
So let's be clear here: we're not teaching kids about saving for retirement -- instead we're teaching them about tax strategies. Guess it's something a 1% kid would need to know about.
Whatever you read, you misread or someone misspoke. Because that's not how Roth works.
Anonymous
11/13/2012 22:40
Subject: Re:1%ers: What are you doing with your $$ before Dec 31?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:
Their contributions can be withdrawn at any time without taxes or penalties. The earnings must stay in. Do your homework before you make ignorant statements.
You sound like a total jerk. The last sentence was necessary ... why? Gotta love the sort of poster this thread attracts.
Eh, the knowledgable pp here's got a point. And "the sort of poster this thread attracts"? That's a joke, right?
A jerk is a jerk is a jerk.
I don't think pp was a jerk but was stating facts and simply annoyed with others' disregard for them. This isn't an emotional thread. It's fact-based.
Oh please. If you really think this thread is fact-based rather than emotional, then stop posting patronizing stuff about homework and ignorant statements. Better yet, stop boasting about your $$ on DCUM. Then you might actually be able to convince yourself, and us, that you're a mature person.
Not the posters you're terrorizing but I think you should get a glass of wine and go back to the general parenting forum. Cause the personal finance stuff really gets you worked up.
Anonymous
11/13/2012 22:30
Subject: Re:1%ers: What are you doing with your $$ before Dec 31?
Anonymous wrote:Anonymous wrote:
All things considered, we're better off if teens are saving for retirement, don't you think?
And if they work. I'm all for teens (inclduing wealthy teens) having jobs in the summer, as opposed to non-stop travel, camps and hanging out. Good job, 1% parents!
Wait. One of you pointed out that the Roth IRA can be withdrawn at any time before retirement. That really the only purpose is to let their summer job earnings accumulate earnings tax free until the kid feels like withdrawing it.
So let's be clear here: we're not teaching kids about saving for retirement -- instead we're teaching them about tax strategies. Guess it's something a 1% kid would need to know about.
Whatever you read, you misread or someone misspoke. Because that's not how Roth works.