Announcement

Collapse
No announcement yet.

Should I Keep My FA Or Only Invest Personally?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #31
    Thanks all! Going to have the in kind transfer executed this week and move on from him. Now I just need to get my dad to read WCI...

    Comment


    • #32
      just another vote to do it on your own. honestly looks like that FA just threw a bunch of darts at a board of tickers. the higher ER funds are the ones closer to the bullseye

      Comment


      • #33
        Good advice/feedback you've gotten here with a ton of support (that can be most important as you step out of your comfort zone and take charge of these things).

        I would be completely remiss if I didn't bring up what seems to have been overlooked with all the rah rah to get out the pitchforks (although I'll admit, this guy should loose you, your father and his colleagues if he treats them half the same). Watch with the big band-aid rip of selling these that you don't create wash-sales either in some of the overlap in what you are selling/what you'll buy and in the years to come between your IRAs and this brokerage money. You could have the best intentions and set some tax fires along the way (search forums for wash-sale rule and you will see some great success stories and plenty of 'I think I messed up'). I also greatly agree with jfoxcpacfp in the need for our industry to end the liberal use and loose standards of 'advisor' when there are plenty of broker salesmen hiding behind the title as well as the death of AUM - these days we use a robo offering with great tax-aware rebalancing/loss capture on all ETF portfolios and actual fiduciary planning involving taxes, investments, estate/legacy, risk management and reporting that actually takes these considerations as well as sequence of returns risks etc. Its also a shame that so many firms provide 'free planning' that isn't worth the paper its printed on by both its lack of depth and methodology.

        Learn, ask questions and research to verify the information you are provided before you know it this will be like riding a bike!
        Founder, Coastal Wealth Planners- Fiduciary Tax-Sensitive Retirement Planning & Wealth Management www.coastal-wp.com email: [email protected]

        Comment


        • #34
          Originally posted by Khart23 View Post
          Good advice/feedback you've gotten here with a ton of support (that can be most important as you step out of your comfort zone and take charge of these things).

          I would be completely remiss if I didn't bring up what seems to have been overlooked with all the rah rah to get out the pitchforks (although I'll admit, this guy should loose you, your father and his colleagues if he treats them half the same). Watch with the big band-aid rip of selling these that you don't create wash-sales either in some of the overlap in what you are selling/what you'll buy and in the years to come between your IRAs and this brokerage money. You could have the best intentions and set some tax fires along the way (search forums for wash-sale rule and you will see some great success stories and plenty of 'I think I messed up'). I also greatly agree with jfoxcpacfp in the need for our industry to end the liberal use and loose standards of 'advisor' when there are plenty of broker salesmen hiding behind the title as well as the death of AUM - these days we use a robo offering with great tax-aware rebalancing/loss capture on all ETF portfolios and actual fiduciary planning involving taxes, investments, estate/legacy, risk management and reporting that actually takes these considerations as well as sequence of returns risks etc. Its also a shame that so many firms provide 'free planning' that isn't worth the paper its printed on by both its lack of depth and methodology.

          Learn, ask questions and research to verify the information you are provided before you know it this will be like riding a bike!
          I have completed the transfer in kind and made a spreadsheet below.

          1) I read that the LTCGs tax is 0% for income <$40k. Because I'll only have $10k of taxable income this year (rest going to 401(k)), I think that the first $30k of LTCGs should have a federal tax hit of 0%? I'm skeptical that that might be too good to be true, but I am clarifying with my accountant if so. Any input here would be appreciated!

          2) Wash sale: I *think* I'll be OK cause I'll only be purchasing VTSAX and VXUS

          Thanks!
          Asset Class Shares Liquidated? Unrealized CGs Unrealized LTCGs Unrealized STCGs Realized LTCG Realized STCGs L/S CGs Date of Last Purchase
          AAPL S 13 0 $4,333.56 $0.00 $4,333.56 $0.00 $0.00 S 3/17/2020
          6 0 $2,225.64 $2,225.64 $0.00 $0.00 $0.00 L 1/15/2013
          5 0 $1,738.15 $1,738.15 $0.00 $0.00 $0.00 L 2/11/2016
          2 0 $369.77 $0.00 $369.77 $0.00 $0.00 S 3/17/2020
          ABBV S 0 $131.05 $0.00 $131.05 $0.00 $0.00 S 3/26/2020
          ABT S 0 $4.70 $0.00 $4.70 $0.00 $0.00 S 7/17/2020
          ALC S 0 $15.83 $0.00 $15.83 $0.00 $0.00 S 7/17/2020
          AMGN S 0 $784.62 $784.62 $0.00 $0.00 $0.00 L
          APO S 27 0 $388.94 $0.00 $388.94 $0.00 $0.00 S 4/15/2020
          8 0 $115.72 $0.00 $115.72 $0.00 $0.00 S 3/27/2020
          19 0 $273.22 $0.00 $273.22 $0.00 $0.00 S 4/15/2020
          ASML S 0 -$11.69 $0.00 -$11.69 $0.00 $0.00 S 7/17/2020
          AVGO S 4 0 $317.08 $317.08 $0.00 $0.00 $0.00 L
          S 2 0 $172.51 $172.51 $0.00 $0.00 $0.00 L 11/16/2018
          2 0 $144.57 $144.57 $0.00 $0.00 $0.00 L 1/2/2019
          BA S 6 0 $98.53 $98.53 $0.00 $0.00 $0.00 L
          1 0 -$133.56 -$133.56 $0.00 $0.00 $0.00 L
          5 0 $232.09 $0.00 $232.09 $0.00 $0.00 S 3/17/2020
          BRK B S 0 $17.93 $0.00 $17.93 $0.00 $0.00 S 7/17/2020
          CRM S 0 $30.60 $0.00 $30.60 $0.00 $0.00 S 7/17/2020
          CSCO S 26 0 $577.72 $577.72 $0.00 $0.00 $0.00 L
          10 0 $184.83 $184.83 $0.00 $0.00 $0.00 L
          16 0 $392.89 $392.89 $0.00 $0.00 $0.00 L
          CVS S 16 0 $161.08 $0.00 $161.08 $0.00 $0.00 S 3/26/2020
          4 0 $23.36 $0.00 $23.36 $0.00 $0.00 S 2/28/2020
          12 0 $137.73 $0.00 $137.73 $0.00 $0.00 S 3/26/2020
          EMLP E 0 -$161.49 $0.00 -$161.49 $0.00 $0.00 S 6/5/2020
          FB S 7 0 $574.59 $0.00 $574.59 $0.00 $0.00 S 3/25/2020
          1 0 $92.16 $92.16 $0.00 $0.00 $0.00 L 3/27/2018
          4 0 $298.26 $298.26 $0.00 $0.00 $0.00 L
          2 0 $184.17 $0.00 $184.17 $0.00 $0.00 S 3/25/2020
          FDN E 0 $2,534.33 $2,534.33 $0.00 $0.00 $0.00 L
          FXG E 0 $55.07 $55.07 $0.00 $0.00 $0.00 L
          FXH E 0 $73.42 $0.00 $73.42 $0.00 $0.00 S 3/27/2020
          FXL E 0 $2,832.34 $2,832.34 $0.00 $0.00 $0.00 L
          FXO E 0 $166.06 $166.06 $0.00 $0.00 $0.00 L
          FXR E 0 $242.56 $242.56 $0.00 $0.00 $0.00 L
          GBIL E 0 $6.80 $6.80 $0.00 $0.00 $0.00 L
          GOOGL S 2 0 $1,469.47 $1,469.47 $0.00 $0.00 $0.00 L
          1 0 $785.83 $785.83 $0.00 $0.00 $0.00 L
          1 0 $683.65 $683.65 $0.00 $0.00 $0.00 L
          GS S 0 -$7.20 -$7.20 $0.00 $0.00 $0.00 L
          GSBIX M 0 $41.02 $41.02 $0.00 $0.00 $0.00 L
          GSIMX M 1 $686.99 $686.99 $0.00 $686.99 $0.00 L
          GSMYX M 87.625 0 $237.81 $0.00 $237.81 $0.00 $0.00 S 6/3/2020
          54.649 0 $165.60 $0.00 $165.60 $0.00 $0.00 S 5/28/2020
          32.976 0 $72.22 $0.00 $72.22 $0.00 $0.00 S 6/3/2020
          HD S 2 0 $181.69 $0.00 $181.69 $0.00 $0.00 S 3/31/2020
          1 0 $108.71 $0.00 $108.71 $0.00 $0.00 S 3/17/2020
          1 0 $72.98 $0.00 $72.98 $0.00 $0.00 S 3/31/2020
          HON S 0 -$7.56 $0.00 -$7.56 $0.00 $0.00 S 7/17/2020
          HYMIX M 0 $97.71 $0.00 $97.71 $0.00 $0.00 S 5/26/2020
          IHF E 0 $141.18 $141.18 $0.00 $0.00 $0.00 L
          IYH E 0 $904.12 $904.12 $0.00 $0.00 $0.00 L
          IYT E 6 0 $222.63 $0.00 $222.63 $0.00 $0.00 S 3/27/2020
          4 0 $141.82 $0.00 $141.82 $0.00 $0.00 S 3/26/2020
          2 0 $80.81 $0.00 $80.81 $0.00 $0.00 S 3/27/2020
          IYW E 0 $2,640.45 $2,640.45 $0.00 $0.00 $0.00 L
          JNJ S 14 0 $106.17 $106.17 $0.00 $0.00 $0.00 L
          2 0 $80.62 $80.62 $0.00 $0.00 $0.00 L
          12 0 $25.55 $25.55 $0.00 $0.00 $0.00 L
          JPM S 0 $33.54 $33.54 $0.00 $0.00 $0.00 L
          KO S 0 -$1.84 $0.00 -$1.84 $0.00 $0.00 S 7/17/2020
          LBNYX M 0 $586.49 $586.49 $0.00 $0.00 $0.00 L
          LHX S 0 $0.45 $0.00 $0.45 $0.00 $0.00 S 7/17/2020
          LLDYX M 0 -$16.23 $0.00 -$16.23 $0.00 $0.00 S 9/27/2019
          LMBS E 0 $22.41 $22.41 $0.00 $0.00 $0.00 L
          MCD S 6 0 $240.74 $0.00 $240.74 $0.00 $0.00 S 3/26/2020
          2 0 $115.23 $0.00 $115.23 $0.00 $0.00 S 3/23/2020
          4 0 $125.51 $0.00 $125.51 $0.00 $0.00 S 3/26/2020
          MRK S 0 $406.58 $406.58 $0.00 $0.00 $0.00 L
          MSFT S 0 $1,901.43 $1,901.43 $0.00 $0.00 $0.00 L
          NVDA S 0 $376.20 $0.00 $376.20 $0.00 $0.00 S 3/26/2020
          PBRIX M 0 -$1,391.14 $0.00 -$1,391.14 $0.00 $0.00 S 5/26/2020
          PFE S 0 $49.74 $49.74 $0.00 $0.00 $0.00 L
          PIMIX M 0 -$45.62 -$45.62 $0.00 $0.00 $0.00 L
          PSTIX M 0 -$502.93 $0.00 -$502.93 $0.00 $0.00 S 3/5/2020
          QCOM S 0 $917.76 $917.76 $0.00 $0.00 $0.00 L
          ROST S 0 $18.94 $0.00 $18.94 $0.00 $0.00 S 7/17/2020
          T S 0 -$86.21 -$86.21 $0.00 $0.00 $0.00 L
          V S 0 $253.52 $253.52 $0.00 $0.00 $0.00 L
          VZ S 0 $128.95 $128.95 $0.00 $0.00 $0.00 L
          WMT S 0 $83.44 $0.00 $83.44 $0.00 $0.00 S 3/26/2020
          July Liquidated 1 $11,000.00 $11,000.00 $0.00 L
          Total $42,774.37 $24,457.00 $7,317.37 $11,686.99
          Last edited by Rozo; 08-09-2020, 10:32 AM.

          Comment


          • #35
            For clarity: $10k is what you realized when you previously sold off the $50k portion I believe? How much income will you be expecting to be claiming for this year from work?
            Founder, Coastal Wealth Planners- Fiduciary Tax-Sensitive Retirement Planning & Wealth Management www.coastal-wp.com email: [email protected]

            Comment


            • #36
              So $10k is my expected income from residency in 2020 not going towards my 401(k). I'm living at home and have just started my intern year so I'm going to be maxing out my 401(k) and Roth IRA contributions for this year.

              $11k was LTCGs I realized in early July when I had my FA liquidate $50k worth of long term assets in anticipation of moving on from him and before originally posting on this threat. Since then I decided to move everything remaining in kind to my Vanguard account with the intention of cleaning it up in a tax-advantaged fashion to eventually be mostly invested in VXUS and VTSAX.

              I have $24,457 of unrealized LTCGs and $7317 of unrealized STCGs from the assets I had moved in kind.

              Hope that clarifies things and thanks!

              Comment


              • #37
                Definitely sell all the lots that have losses- that will help offset some of the capital gains you already realized. Then depending on their values, you can sell the rest while attempting to minimize taxes by selling LTCG ones and waiting until the STCG become LTCG to sell. But honestly for simplicity's sake I'd just sell all now, and pay the very small amount on taxes (you wont be in a lower tax bracket for a loooonnnggg time).

                Comment


                • #38
                  billy those numbers have the unrealized losses baked in as of now (there really aren't many and he's looking to fully liquidate so they will be captured). But if there are any other pockets of volatility where losses can be captured this year and/or any carry-forward losses that can be a way to chip more down

                  Rozo I sent you a direct message aside from here to dig into some of the more detailed moving parts so you can get a clear answer rather than some of the runaround from the FA/CPA you've gotten
                  Founder, Coastal Wealth Planners- Fiduciary Tax-Sensitive Retirement Planning & Wealth Management www.coastal-wp.com email: [email protected]

                  Comment


                  • #39
                    Regarding pockets of volatility:
                    This brings up actual stock picking based upon price action.
                    If you are picking a stock, I would suggest that actually do that. Which stocks do you want to hold, not hoping for volatility.

                    Comment


                    • #40
                      Rozo, it shouldn't be a hard sell to get your father to move. I started pvt practice in 1995. I used my dad's attorney for contract, his accountant for the practice and his finance guy(MGA)for taxable account with 1.5% AUM and hairy expense ratios. A little after, I set up my SEP vanguard. In roughly less than a year I cashed out of my taxable and moved it all to Vanguard. My dad (internist)who was better at math than me followed 3 months later.

                      Comment


                      • #41
                        As an update I've been slowly cleaning up my holdings. Currently at ~$20k of realized LTCGs and will continue moving in that direction.

                        My dad is now 75% of the way through WCI and has really taken to it! He showed me an email he sent to the FA asking "Do you know anything about index funds, ETFs, and Vanguard funds and am I invested in any of them?"...they're baby steps but still steps haha! I've also been fielding a lot of his questions

                        Comment


                        • #42
                          Originally posted by Rozo View Post
                          As an update I've been slowly cleaning up my holdings. Currently at ~$20k of realized LTCGs and will continue moving in that direction.

                          My dad is now 75% of the way through WCI and has really taken to it! He showed me an email he sent to the FA asking "Do you know anything about index funds, ETFs, and Vanguard funds and am I invested in any of them?"...they're baby steps but still steps haha! I've also been fielding a lot of his questions
                          Oh please please please don't let this thread die! We will be fascinated to hear how this plays out - that "advisor" is going to show up at your dad's door all weepy/sweaty with a gift and probably offer to have his boss/manager drop by as well and visit (and will probably say "he never does this for my clients but because of our longstanding relationship this is a special case" or some other garbage like that.) Going to be some high-pressure emotional tactics deployed and probably subtle scary statements about the terrible things that would potentially go wrong if the practice moves its 401k to a different provider. It'll be a masterclass in emotional manipulation.

                          Comment


                          • #43
                            Originally posted by Roentgen View Post

                            Oh please please please don't let this thread die! We will be fascinated to hear how this plays out - that "advisor" is going to show up at your dad's door all weepy/sweaty with a gift and probably offer to have his boss/manager drop by as well and visit (and will probably say "he never does this for my clients but because of our longstanding relationship this is a special case" or some other garbage like that.) Going to be some high-pressure emotional tactics deployed and probably subtle scary statements about the terrible things that would potentially go wrong if the practice moves its 401k to a different provider. It'll be a masterclass in emotional manipulation.
                            Oh I agree completely! My dad laughed when I was on the phone with the FA and he said "I just want you to know we want to keep you around. It's not about the money to me, it's about the personal connection" even though that was only the 2nd time in my life I had actually spoken with him on the phone...

                            I think my dad's pretty resistant to the emotional tactics but even if they don't end up moving the 401(k) (my dad is a partner but not a majority owner or anything like that) I think making the FA sweat a little will be well worth the price of admission

                            Comment


                            • #44
                              Originally posted by Rozo View Post

                              Oh I agree completely! My dad laughed when I was on the phone with the FA and he said "I just want you to know we want to keep you around. It's not about the money to me, it's about the personal connection" even though that was only the 2nd time in my life I had actually spoken with him on the phone...

                              I think my dad's pretty resistant to the emotional tactics but even if they don't end up moving the 401(k) (my dad is a partner but not a majority owner or anything like that) I think making the FA sweat a little will be well worth the price of admission
                              Just remember, as long as the FA keeps the AUM he is happy as a pig in slop. Plenty to eat. Less work too. Pigs get slaughtered.

                              Comment

                              Working...
                              X