All things STOCKS

#19,376
#19,376
Freak said:
This may be real, but there are so many AI videos these days it sickening. This one being published four weeks ago is a red flag. I haven't watched this one you linked, but I've seen a couple show up on my timeline recently that were definitely AI.
Click to expand...

It’s definitely being narrated by an AI cloned voice of Charlie. But what’s said is accurate. I’m guessing that he wrote it.
 
#19,378
#19,378
A couple more thoughts @GordonC

As @Thunder Good-Oil pointed out, take a look at taxes. With One Big Beautiful Bill Act, there may be an exclusion for some/most/all social security income. If your mom is in 0% bracket after OBBBA, might not be the worst idea to take out more than RMD mininum and place in high yield checking/MM. Might not even be a bad idea at 10% bracket.

Agree with @Thunder Good-Oil. Not sure why IRA couldn't be rolled over to Fidelity. The spread might not be worth the trouble/attorney.

Given that funds may still be used for LT Care, probably best to keep liquid for short term.
 
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#19,379
#19,379
Wednesday, December 10th at 2pm: the final FOMC rate decision of 2025

Powell speaks at 2:30pm
====================================
Tentative 2026 FOMC Meeting Dates:

January 27-28: Decision on Jan 28.

March 17-18: Decision on Mar 18.

April 28-29: No SEP, focus on data.

June 16-17: Decision on June 17 (Mid-year SEP).

July 28-29: No SEP, data-driven.

September 15-16: Decision on Sep 16 (Pre-autumn SEP).

October 27-28: No SEP, adjustments.

December 8-9: Decision on Dec 9 (Final SEP for 2026).
====================================

SEP (quarterly Summary of Economic Prijections):

What the SEP Includes:

Economic Forecasts: Projections for future GDP growth, inflation (PCE), and the unemployment rate.

Interest Rate Path: Where each participant thinks the federal funds rate should be over the coming years, including longer-run values.

"Dot Plot": A visual representation showing each participant's view on the appropriate federal funds rate for various timeframes.

Long-Run Goals: Views on the economy's natural state, like the natural unemployment rate or potential output growth.

When it's Released:
The SEP is released four times a year (March, June, September, December) as an addendum to the FOMC meeting minutes, following the meeting where projections are submitted.

Why it's Important:
It provides insight into the individual thinking of the Federal Reserve members, not just the committee's consensus.

It helps markets understand the Fed's outlook and potential future policy shifts.
 
#19,381
#19,381
BigOrangeMojo said:
For #2, she can take RMDs for the next 9 years but she will need to empty it in full by the 10th year.

I'll get back to you on other question.
Click to expand...
I understood a spouse inherited IRA has the option to roll the IRA into her own IRA and then draw RMD’s on her life expectancy? Thought the 10 year rule applied to children or anyone else except the spouse or if there’s a dependent special needs child?

My wife inherited an IRA from her father 8 years back and she had to start life expectancy RMD’s in her mid 50’s but I know the rules changed since then
 
#19,382
#19,382
For you guys who have explored the trust options, if the estate is under the $13.99 million so as to not trigger any taxes then what is the value of dealing with a trust. Seems like if all accounts have the beneficiary assigned properly then the only thing left is real estate and personal property?
 
#19,383
#19,383
walkenvol said:
For you guys who have explored the trust options, if the estate is under the $13.99 million so as to not trigger any taxes then what is the value of dealing with a trust. Seems like if all accounts have the beneficiary assigned properly then the only thing left is real estate and personal property?
Click to expand...
to keep the estate out of probate
to have whatever's in the trust shielded from debt collection (e.g., ridiculously high hospital bills for the beneficiary)
 
#19,384
#19,384
walkenvol said:
I understood a spouse inherited IRA has the option to roll the IRA into her own IRA and then draw RMD’s on her life expectancy? Thought the 10 year rule applied to children or anyone else except the spouse or if there’s a dependent special needs child?

My wife inherited an IRA from her father 8 years back and she had to start life expectancy RMD’s in her mid 50’s but I know the rules changed since then
Click to expand...
we were told it depends on how the IRA is set up in the first place
One of the IRAs he had was a simple "rollover" for her, as you say....the other required her to begin RMDs
 
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#19,386
#19,386
GordonC said:
to keep the estate out of probate
to have whatever's in the trust shielded from debt collection (e.g., ridiculously high hospital bills for the beneficiary)
Click to expand...
IIRC, accounts that have a beneficiary assignments don’t go into probate? Seems like with a large portion of folks that only leaves their home to be sold. If they can’t pay their medical bills then that’s a whole other discussion to me.
 
#19,387
#19,387
walkenvol said:
For you guys who have explored the trust options, if the estate is under the $13.99 million so as to not trigger any taxes then what is the value of dealing with a trust. Seems like if all accounts have the beneficiary assigned properly then the only thing left is real estate and personal property?
Click to expand...

A revocable trust is used to keep assets outside of probate and is a good way to plan for beneficiaries (protect spendthrift children from themselves).

An irrevocable trust shields assets and can be used in tax planning to reduce the grantor’s taxes and also make them eligible for certain benefits. For example before going into assisted living the assets in an IT won’t be liquidated to pay those bills after the grantor’s death or included in wealth testing to determine eligibility of certain welfare programs.

The grantor can also be the trustee of a revocable trust.

Irrevocable trusts are very difficult to modify. Revocable trusts are easily modified.

Special needs trusts are also often used for the benefit of disabled children.

The grantor can not be the trustee of their own irrevocable trust.
 
#19,388
#19,388
Thunder Good-Oil said:
Wednesday, December 10th at 2pm: the final FOMC rate decision of 2025

Powell speaks at 2:30pm
====================================
Tentative 2026 FOMC Meeting Dates:

January 27-28: Decision on Jan 28.

March 17-18: Decision on Mar 18.

April 28-29: No SEP, focus on data.

June 16-17: Decision on June 17 (Mid-year SEP).

July 28-29: No SEP, data-driven.

September 15-16: Decision on Sep 16 (Pre-autumn SEP).

October 27-28: No SEP, adjustments.

December 8-9: Decision on Dec 9 (Final SEP for 2026).
====================================

SEP (quarterly Summary of Economic Prijections):

What the SEP Includes:

Economic Forecasts: Projections for future GDP growth, inflation (PCE), and the unemployment rate.

Interest Rate Path: Where each participant thinks the federal funds rate should be over the coming years, including longer-run values.

"Dot Plot": A visual representation showing each participant's view on the appropriate federal funds rate for various timeframes.

Long-Run Goals: Views on the economy's natural state, like the natural unemployment rate or potential output growth.

When it's Released:
The SEP is released four times a year (March, June, September, December) as an addendum to the FOMC meeting minutes, following the meeting where projections are submitted.

Why it's Important:
It provides insight into the individual thinking of the Federal Reserve members, not just the committee's consensus.

It helps markets understand the Fed's outlook and potential future policy shifts.
Click to expand...
Cutting half point.

Spread the rumor! :oops: 🥸 😇😁:rolleyes:
 
#19,389
#19,389
walkenvol said:
IIRC, accounts that have a beneficiary assignments don’t go into probate? Seems like with a large portion of folks that only leaves their home to be sold. If they can’t pay their medical bills then that’s a whole other discussion to me.
Click to expand...

Accounts can also be assigned with a TOD (transfer on death) designation in order to avoid probate without the administrative costs of having a trust. This is a great, simple feature of bank and brokerage accounts.
 
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#19,390
#19,390
Thunder Good-Oil said:
A revocable trust is used to keep assets outside of probate and is a good way to plan for beneficiaries (protect spendthrift children from themselves).

An irrevocable trust shields assets and can be used in tax planning to reduce the grantor’s taxes and also make them eligible for certain benefits. For example before going into assisted living the assets in an IT won’t be liquidated to pay those bills after the grantor’s death or included in wealth testing to determine eligibility of certain welfare programs.

The grantor can also be the trustee of a revocable trust.

Irrevocable trusts are very difficult to modify. Revocable trusts are easily modified.

Special needs trusts are also often used for the benefit of disabled children.

The grantor can not be the trustee of their own irrevocable trust.
Click to expand...
Thanks for the response!

Can you explain the “grantor’s taxes” if the estate is under $13.99 million?

Unless a person hasn’t planned resources or purchased insurance for assisted living and end up in the government provided assisted living, then protecting their limited resources (likely the family home) then it doesn’t seem like it would apply?

Not trying to pick holes in your post, just trying to apply it to my aging parents situation and whether its of value for them.
 
#19,391
#19,391
walkenvol said:
Thanks for the response!

Can you explain the “grantor’s taxes” if the estate is under $13.99 million?

Unless a person hasn’t planned resources or purchased insurance for assisted living and end up in the government provided assisted living, then protecting their limited resources (likely the family home) then it doesn’t seem like it would apply?

Not trying to pick holes in your post, just trying to apply it to my aging parents situation and whether its of value for them.
Click to expand...

IRMAA penalties kick in around $100k/$200k for Medicare. Medicaid assistance has income thresholds on the lower end of the income spectrum. I think that Medicare Advantage has benefits available is income is kept under a certain threshold.

I’m not an income tax expert, but gift taxes kick in at around a million per beneficiary. Even if there’s no taxes due the IRS wants returns filed at around $10-$15,000/year is gifted to anybody.

The $14 million will be targeted by Democrats if they were to get control of fhe Executive and Legislative branches. I could see them try to reduce the $14 million exclusion to around $5 million.

To setup a trust or not is something that a CFP should be able to determine. For about $200/hour. Some banks will provide that kind of assistance as a free service for customers. But they’re also incentivized to steer clients into their products. An independent CFP will be a fiduciary.
 
#19,392
#19,392
Trusts won’t eliminate taxes. The government will get there’s one way or another.
——————————————————————
The two primary trust categories for tax purposes are:
  • Grantor Trusts: In a grantor trust (which includes most revocable living trusts), the person who created the trust (the grantor) retains control and is responsible for reporting all trust income, deductions, and credits on their personal income tax return (Form 1040). The trust itself is generally a disregarded entity for income tax purposes during the grantor's lifetime.
  • Non-Grantor Trusts: These trusts are separate taxable entities from the grantor (most trusts become non-grantor trusts after the grantor's death, if not sooner). They must file their own tax return, Form 1041, U.S. Income Tax Return for Estates and Trusts, if they have gross income of $600 or more.
How Non-Grantor Trusts are Taxed
For non-grantor trusts, the tax liability is determined by whether the income is kept in the trust or distributed to beneficiaries:
  • Retained Income: The trust pays income tax on any income it accumulates (does not distribute) at the trust's tax rates. Trust tax brackets are highly compressed, meaning they reach the highest federal tax rate (37% for 2025) at much lower income thresholds than individuals.
  • Distributed Income: If the trust distributes income to its beneficiaries in the same year it was earned, the trust can take a corresponding deduction. The beneficiaries then receive a Schedule K-1 (Form 1041) from the trust and must report that income on their own personal tax returns, paying taxes at their individual rates, which are typically lower than trust rates.
Distributions of principal (the original assets contributed to the trust, plus any accumulated earnings that were previously taxed) are generally not taxable to the beneficiary.
 
#19,393
#19,393
On a scale of 1-10, how big of news is this Prez approving NVDA AI chips to China story?

I'm guessing it's a 6-7ish development but haven't followed closely.

Should at least mean a green day for NVDA.
 
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