Amethyst
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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This is a bad time for us to sell, as we are still liable for part-year MD income taxes. If only W2R had waited till January 1st!
Dow over 28,000!
- Thread starter W2R
- Start date
Not sure about MD taxes, but when we moved out of NY investment income was only included in the NY return if it has been paid on days were were physically present in the state. There was no part year prorating of investment income.
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Or it could mean that 12 years from now the Dow will be at 56,000.
ETA: Whoops, W2R already made a similar comment upthread that I somehow missed. Sorry, W2R!
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OP
OP
W2R
Moderator Emeritus
GMTA. I do have a couple of potential heirs, but we are thinking similarly.
So, about a year ago I decided to change my written financial plan to adapt it more to old age, which hopefully is to come to me at some point. Instead of an AA of 45:55 (which worked out nicely for me in 2008-2009), I switched to an equity portion equal to 110 minus my age and I am slowly moving to that AA.
Should be completely moved to 110-age by 2021. I am 71 now, and 42:58 so I am not quite there yet.
scrabbler1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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I recently pierced the $1.6M mark thanks to market gains. My rollover IRA began with $235k in it back in mid-November of 2008. I had a 55/45 AA which has gradually reversed with the help of rebalancing. Today, without having added or removed a dime from it, the balance is now $653k, with the bond side more than tripled while the stock side nearly tripled.
Even the 2 weeks in early November my retirement money was out of the market in 2008 helped me out because the markets kept dropping, about 800 points in those first 2 weeks.
With all the market gains, I had to actually sell some shares in my taxable account's stock fund at a loss because that small paper loss will be more than offset by a real $2,500 gain from making myself eligible for an ACA tax subsidy. Go figure, in this era of gains, I had to create a loss! That's me, being an outlier again.
Even the 2 weeks in early November my retirement money was out of the market in 2008 helped me out because the markets kept dropping, about 800 points in those first 2 weeks.
With all the market gains, I had to actually sell some shares in my taxable account's stock fund at a loss because that small paper loss will be more than offset by a real $2,500 gain from making myself eligible for an ACA tax subsidy. Go figure, in this era of gains, I had to create a loss! That's me, being an outlier again.
OP
OP
W2R
Moderator Emeritus
Well that is true! The oldest woman alive today is around 116-117 years old, or so.
That's a hard question to answer. I guess at that when I am 111 years old, I'll be all cash and spending it fast enough to make one's head spin. So, calculating my AA will not be at the top of my list of goals.
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GravitySucks
Thinks s/he gets paid by the post
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Go to post #26 in this thread... third line... in green... last word. That is all I am willing to say.
timbervest
Recycles dryer sheets
Dow at 28,000. Is that it?
Back in 1999-2000, the following books were published.
Come on, it has been 20 years already. I don't have another 20 years to wait.
Or what about this?
Dow 30,000 by 2008! Why it's different this time!
Andre1969
Thinks s/he gets paid by the post
This little W- moment has put me just north of the $1.9M mark, a place I was only at for June, July, and August of 2018.
One thing that's a real eye opener, though, is that, since the Christmas Eve 2018 bottom, my investible assets have appreciated by around $431,000. My outstanding mortgage balance is around $468,000. It's kinda wild to think I could almost pay off the mortgage, and it would only put me back to that December low.
And while that December low is an era I'd rather not repeat, when I look back on the overall history of how long I've been investing, it's really just a blip. I first broke $1M back in early 2015, and broke $1.5M in mid 2017, although admittedly, I had an inheritance in there to help with that boost.
Another mind game I like to play with myself is, where would I be if I hadn't bought the house. And, by my estimate, somewhere slightly north of $2.1M, once I add back in the down payment, plus all the mortgage payments I've made since then.
One thing that's a real eye opener, though, is that, since the Christmas Eve 2018 bottom, my investible assets have appreciated by around $431,000. My outstanding mortgage balance is around $468,000. It's kinda wild to think I could almost pay off the mortgage, and it would only put me back to that December low.
And while that December low is an era I'd rather not repeat, when I look back on the overall history of how long I've been investing, it's really just a blip. I first broke $1M back in early 2015, and broke $1.5M in mid 2017, although admittedly, I had an inheritance in there to help with that boost.
Another mind game I like to play with myself is, where would I be if I hadn't bought the house. And, by my estimate, somewhere slightly north of $2.1M, once I add back in the down payment, plus all the mortgage payments I've made since then.
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Amethyst
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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The instructions (below) sure sound like prorating to me.
Complete the Additions to Income area using Instruction 12. If you had losses or adjustments to income on your federal return, write on line 5 those loss or adjustment items, which were realized or paid when you were not a resident of Maryland.
Complete the Subtractions from Income area using Instruction 13. You may include only subtractions from income that apply to income subject to Maryland tax. Include on line 13 any income received during the part of the year when you were not a resident of Maryland.
You must adjust your standard or itemized deductions and exemptions based on the percentage of your income subject to Maryland tax. Complete the Maryland Income Factor Worksheet to figure the percentage of Maryland income to total income. The factor cannot exceed 1 (100%) and cannot be less than zero (0%). If line 1 is 0 or less, the factor is 0. If line 1 is greater than 0 and line 2 is 0 or less, the factor is 1.
If you itemize deductions, complete lines 17a - 17b of Form 502. Prorate the itemized deductions using this formula: Net itemized deductions X Maryland income factor = Maryland itemized deductions. Enter the prorated amount on line 17 of Form 502 and check the Itemized Deduction Method box. Another method of allocating itemized deductions may be allowed. Please send your written request along with your completed Maryland return, a copy of your federal return including Schedule A and a copy of the other state's return. If the other state does not have an income tax, then submit a schedule showing the allocation of income and itemized deductions among the states. The Maryland return must be completed in accordance with the alternative method requested. This request should be sent to the Revenue Administration Division, Taxpayer Accounting Section (Special Allocations), P.O. Box 1829, Annapolis, MD 21404-1829.
If you are not itemizing deductions, you must use the standard deduction. The standard deduction must be prorated using the Maryland income factor. Calculate the standard deduction using the worksheet in Instruction 16 of the tax booklet. Prorate the standard deduction using the following formula: Standard deduction X Maryland income factor = Prorated standard deduction. Enter the prorated amount on line 17 of Form 502 and check the Standard Deduction Method box.
The value of your exemptions (line 19) must be prorated using the Maryland income factor. Use this formula: Total state exemption amount X Maryland income factor = Prorated exemption amount. Enter the prorated exemption amount on line 19 of Form 502.
You must prorate your earned income, poverty level and refundable earned income credits (if you qualify) using the Maryland income factor. See Instruction 26 in the Maryland tax booklet to see how the factor is applied.
Complete the Additions to Income area using Instruction 12. If you had losses or adjustments to income on your federal return, write on line 5 those loss or adjustment items, which were realized or paid when you were not a resident of Maryland.
Complete the Subtractions from Income area using Instruction 13. You may include only subtractions from income that apply to income subject to Maryland tax. Include on line 13 any income received during the part of the year when you were not a resident of Maryland.
You must adjust your standard or itemized deductions and exemptions based on the percentage of your income subject to Maryland tax. Complete the Maryland Income Factor Worksheet to figure the percentage of Maryland income to total income. The factor cannot exceed 1 (100%) and cannot be less than zero (0%). If line 1 is 0 or less, the factor is 0. If line 1 is greater than 0 and line 2 is 0 or less, the factor is 1.
If you itemize deductions, complete lines 17a - 17b of Form 502. Prorate the itemized deductions using this formula: Net itemized deductions X Maryland income factor = Maryland itemized deductions. Enter the prorated amount on line 17 of Form 502 and check the Itemized Deduction Method box. Another method of allocating itemized deductions may be allowed. Please send your written request along with your completed Maryland return, a copy of your federal return including Schedule A and a copy of the other state's return. If the other state does not have an income tax, then submit a schedule showing the allocation of income and itemized deductions among the states. The Maryland return must be completed in accordance with the alternative method requested. This request should be sent to the Revenue Administration Division, Taxpayer Accounting Section (Special Allocations), P.O. Box 1829, Annapolis, MD 21404-1829.
If you are not itemizing deductions, you must use the standard deduction. The standard deduction must be prorated using the Maryland income factor. Calculate the standard deduction using the worksheet in Instruction 16 of the tax booklet. Prorate the standard deduction using the following formula: Standard deduction X Maryland income factor = Prorated standard deduction. Enter the prorated amount on line 17 of Form 502 and check the Standard Deduction Method box.
The value of your exemptions (line 19) must be prorated using the Maryland income factor. Use this formula: Total state exemption amount X Maryland income factor = Prorated exemption amount. Enter the prorated exemption amount on line 19 of Form 502.
You must prorate your earned income, poverty level and refundable earned income credits (if you qualify) using the Maryland income factor. See Instruction 26 in the Maryland tax booklet to see how the factor is applied.
GravitySucks
Thinks s/he gets paid by the post
Made me look.
Up to new highs even with the bonehead moves I've made recently. (Moved the main bond holding to shorter duration in 2018, selling equities for next year's cash 3 weeks ago.)
Guess it's better to be lucky than smart.
Up to new highs even with the bonehead moves I've made recently. (Moved the main bond holding to shorter duration in 2018, selling equities for next year's cash 3 weeks ago.)
Guess it's better to be lucky than smart.
iloveyoga
Thinks s/he gets paid by the post
It's hard to believe, but at closing today the Dow is 28,005 and the S&P is at 3,120 . Seems so amazing.
But before you all "poo poo" my excitement, look at your portfolio balance. In my case, my portfolio is at its all time high (again) today. Also it is 145% of what it was when I retired ten years and six days ago, despite living on it. During that time the CPI only went up a little over 16% so most of this gain is real. During most of those ten years I didn't have SS to lean on like I do now, so who knows what the future may bring.
It would have been nice if I had had two cents to rub together when I was younger, or even middle aged. But then, maybe it's just as well since I did learn to LBYM by not having much.
Well, I just wanted to make all of you fine people smile and feel happy.
I agree, it is a happy day.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
No, after the run up even as of 3 weeks ago, you were just mitigating risk... so you're a risk mitigator, not a lucky bonehead.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
They are doing it to fix recent problems with the overnight repo market.
https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20191011a2.pdf
https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20191011a2.pdf
Major Tom
Thinks s/he gets paid by the post
Or what about this?
Dow 30,000 by 2008! Why it's different this time!
LOL - the big alarm bell here is the phrase, "It's different this time". It almost never is!
Holymoly. I just looked at my balance, and I'm at 963K! Not a great deal for many here, but it's the most I've ever had. Now, I'm thinking that if I hadn't bought my campervan, I'd have around $985K now, and be within spitting distance of that magic number. Dagnabbit - how dare I spend money on something I was going to enjoy? What was I thinking! All I want is, when I'm living in my van down by the river because my portfolio took a deep dive, that I once had a million dollars - even if I only had it for a day
Of course, it's a bit silly, because the difference in income and portfolio survivability between 1M and what I have now is minimal but, as they say, it's the thought that counts. The thought that I have a cool 1M. OK, I'll stop thinking about money now, but that is part of the point of this forum.............
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Fermion
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
We are all having a good time laughing and all, but gee I really would be happy if I could avoid a 30% drop by a little market timing.
I sure do wish bonds were paying 6% right now.
I sure do wish bonds were paying 6% right now.
Samething
Recycles dryer sheets
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If the underlying economy/market is so great, why has the Fed restarted QE?
+1
+1
Badger
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Not as concerned about a potential drop in the DOW as a I am in the inevitable rise in my age.
Cheers!
Cheers!
LRDave
Thinks s/he gets paid by the post
Two "thanks gods" here:
1) Thank god back in 2008 I didn't know even just enough to be dangerous, so I didn't try to react and catch a falling knife.
2) Thank god that even from the beginning of my IRA/401(K) investing days when I had some really crappy choices and didn't know the differences, I picked target-date-ish funds and didn't mess with them. Sometimes laziness and apathy pays off!
1) Thank god back in 2008 I didn't know even just enough to be dangerous, so I didn't try to react and catch a falling knife.
2) Thank god that even from the beginning of my IRA/401(K) investing days when I had some really crappy choices and didn't know the differences, I picked target-date-ish funds and didn't mess with them. Sometimes laziness and apathy pays off!
