@WXYZ May I ask you something? One of your holdings is PG, I was wondering if you know Unilever, and what is you insight (both are at same segment).
Every morning when I come on here I look for the latest.......BACKERISM. I am fascinated by the one line comments. RG.....Unilever....I dont follow it. i have considered buying it many years ago....over 20 years. I may have even owned in long long ago....I dont recall if I bought some or if I only considered it. I know that if I owned it in the distant past I did not hold it very long or I would have a better memory of it. I do think of it as a EUROPEAN version of a big American conglomerate.....as you said similar to PG. I took a quick look at some of the charts on the stock and saw that it has SEVERELY under-performed the SP500 over many years. I really dont consider or buy stocks that are NOT AMERICAN.....but.....I will try to take a look at it some time today and post more.
RG......as to UL....I guess it depends on whether or not you think they are a come-back candidate. Their financials are DISMAL. Their stock is down over 4% over the past year. They do have some great well known products....but their financials are TERRIBLE over the past 5 years......revenue, profit, operating income, pretax income....ALL down compared to the past 5 years. EPS down over the past 5 years. Gross margin down over 4 years. Debt is up but they look like they are accumulating cash. Market cap is down over 4 years. Return on equity is way down over 4 years. Dividend yield is down over 3 years. Etc, etc, etc. Basically I was negatively surprised by their financials. So....I would not buy this stock. If someone sees it as a turn around play....ok. But I dont like a big old time conglomerate that is showing those sort of financials. RG.....you are in the EU.....what is your view of UL? Do you own it? I did not look at their management, have they made any changes? Here is the financials: https://stockanalysis.com/stocks/ul/financials/
A mixed open for me and a negative open for the markets. We continue to put up good weekly numbers....but....day to day the markets have trouble being consistent. At least it is a good time for retirement accounts and those that are on the cusp of retirement. the issue will be how they manage that money in retirement and if they can hang onto it. Booming stocks helped create record retirement savings and contributions https://finance.yahoo.com/news/401-...ent-savers-boost-contributions-134921781.html (BOLD is my opinion OR what I consider important content) "The soaring stock market in the second quarter helped boost Americans’ retirement savings to new highs and persuaded investors to contribute more than ever to their next eggs. The average retirement account balances of more than 30 million IRAs, 401(k)s, and 403(b)s at Fidelity Investments increased to record levels in the second quarter for the third consecutive quarter. For IRA accounts, the average balance was $134,900, marking a 4% gain from last quarter; 401(k) balances grew 4% to $129,300, and the average 403(b) account balance increased to a record $113,300, an increase of 6% from the previous quarter. “In the midst of another wave of uncertainty, it's really encouraging to see just how well Americans are saving for the long term,” Jessica Macdonald, vice president of thought leadership at Fidelity, told Yahoo Money. “They're [also] increasing their savings rates into their retirement accounts and we're seeing a downward trend of outstanding loans from those accounts.” Overall, the average 401(k) employee savings rate reached a record 9.3% in the quarter. Over the last year, more than one in three of 401(k) savers have increased their savings rate, while only 7% of workers decreased their 401(k) contribution since a year ago. The enthusiasm for saving spanned generations in the second quarter when the Standard & Poor's 500 index returned 8.2%. For instance, Gen Zers hold 795,000 accounts on the Fidelity platform, which is a 10% jump from the beginning of this year. Millennials have increased their savings rate by 43% over the past year. “It's great that so many young people are able to benefit from the market performance by simply taking advantage of a benefit offered by their employer,” she said. “It's not just cryptos or single stocks.” With the bulk of their professional years ahead of them, Macdonald pointed out that younger generations are “seeing the benefits of getting in now” and “letting the money work for them over the years.” Baby boomers are using their remaining earning years to boost their retirement contributions, the data showed. A record 18.2% made a “catch-up” contribution last quarter, and of that, nearly 3 in 5 made the maximum catch-up 401(k) contribution of $6,500 by the end of last year. The average 403(b) contribution rate for baby boomers also increased to 10.9% in the second quarter. The average IRA contribution amount for baby boomers increased 17% last quarter to $3,570, and the total number of IRA contributions among boomers increased 57% when compared with the same quarter last year. Macdonald partly attributes the groundswell of additional savers to retirement savings auto-enrollment offered by employers. “[Employers] are enrolling employees automatically,” she said, adding that some are offering auto-increases for willing employees to annually contribute larger percentages as their take-home pay increases. “There's a lot of benefit to that actually of the employees that have been auto-enrolled,” adding that only 91% of participants opt out. “Sometimes it's just a matter of getting over that hump and getting signed up, which is the most important part.”" MY COMMENT Anything that contributes to or increases the number of people saving for retirement is a good thing. It is nice to see younger people starting to save for retirement in record numbers. They will reap the benefits of compounding over many years. The BOOMING markets and all the publicity is causing people to pile in. Lets hope that once they start to contribute it becomes a lifetime habit. The balances in IRA and 401K accounts above look pretty low....but those are just averages. I would be interested to see what the figures are for those just starting retirement.
Speaking of retirement......and moving forward to the end of retirement and ESTATE TAXES....here is a bit of info on "state"....estate taxes. States With Estate and Inheritance Taxes https://finance.yahoo.com/news/states-estate-inheritance-taxes-164348172.html MY COMMENT There are about 12 states that tax estates on death. Some of these are pretty hefty and apply to estates as low as $1MILLION. Definitely worth taking into account when it comes to where you decide to live in retirement.
HERE is the situation today for the markets....at least early in the day. Stock market news live updates: Stocks drift below records as indexes head for winning August https://finance.yahoo.com/news/stock-market-news-live-updates-august-31-2021-221753781.html (BOLD is my opinion OR what I consider important content) "Stocks dipped on Tuesday, with the major indexes on track to close out August trading with another monthly gain. The S&P 500 was slightly lower, pulling back after the Conference Board's closely watched monthly report on consumer confidence fell more than expected in August amid the Delta variant's spread. Both the S&P 500 and the Nasdaq had set fresh record intraday and closing highs during Monday's trading day, powered higher by a jump in heavily weighted Big Tech stocks. The S&P 500 is on track to post a seventh straight monthly advance in August, pacing toward a 3% monthly gain and bringing its year-to-date rise to nearly 21%. The Nasdaq has outperformed with a gain of 4% so far in August as traders piled back into growth and technology stocks. Meanwhile, the Dow — which is heavy in cyclical stocks with earnings tied to the economic recovery — has underperformed, gaining 1.3% as concerns over the Delta variant surged in recent weeks. Even given the S&P 500's march to all-time highs, many strategists have penciled in further gains. BMO Capital Markets became the latest firm to raise its year-end price target on the S&P 500 on Monday. The company's chief investment strategist Brian Belski wrote in a new note that he now expects the index to end the year at 4,800 instead of 4,500. He cited the "blistering rate" of corporate earnings beats in the second-quarter, with the strengthening economic backdrop helping also drive profit growth at many companies. The current policy environment has also been conducive to further gains in equities, other strategists have noted, given the Federal Reserve's still-accommodative policy tilt and the prospects of further government spending with the infrastructure and budget reconciliation bills being discussed in Congress. The Fed's policy trajectory has been especially closely watched, as traders brace for the gradual easing of crisis-era supports like the central bank's $120 billion per-month asset purchase program. Still, key central bank officials including Fed Chair Jerome Powell have signaled they are waiting to monitor the incoming data and Delta variant's impact on the economy before charging ahead with a policy move. "We do think that tapering, in general, will be a non-event, most likely because first, the market has had time to react throughout this year," James Liu, Clearnomics founder and CEO, told Yahoo Finance. "The Fed has done a great job telegraphing all this." "Whether it's September or November for the announcement of taper will really depend on the jobs report coming up and some more economic data," he added. "But regardless, the market seems to expect it at this point. This is very different from 2013, when the market had to adjust very abruptly to taper." 10:08 a.m. ET: Consumer confidence slid to the lowest level since February in August The Conference Board's consumer confidence index disappointed against already lowered expectations in August, with the latest surge in the coronavirus stoking more concerns among consumers. The firm's headline index fell to 113.8 in August, missing expectations for 123.0, according to Bloomberg data. That was down from 125.1 in July, which was also downwardly revised from the 129.1 previously reported. Meanwhile, a subindex tracking consumers' expectations for the future slid to 91.4 in August from 103.8 in July. Consumers' assessments of present situations also deteriorated during the month. "Concerns about the Delta variant—and, to a lesser degree, rising gas and food prices—resulted in a less favorable view of current economic conditions and short-term growth prospects," Lynn Franco, senior director of economic indicators at The Conference Board, said in a press statement. "Spending intentions for homes, autos, and major appliances all cooled somewhat; however, the percentage of consumers intending to take a vacation in the next six months continued to climb." "While the resurgence of COVID-19 and inflation concerns have dampened confidence, it is too soon to conclude this decline will result in consumers significantly curtailing their spending in the months ahead," Franco added." MY COMMENT NOTHING going on today in terms of news or the markets other than.....EXHAUSTION. People, CONSUMERS, and investors are just beaten down and tired. BUT....the general market direction is STILL strongly up. We should be back to a more normal market volume after Labor Day and fully into the last four months of the year. We will also be heading to third quarter earnings......a short time down the road.....but....in the meantime we get to have a month or so of relative peace. Consumer confidence tumbles to lowest level since February https://www.foxbusiness.com/economy/consumer-confidence-august-2021 I continue to be fully invested for the long term as usual.
Thanks for the input fella's. Oldmanram I have not documented the step up basis and I'm sure glad you brought it up. Heck I had to read up on it as I've never had anything handed down before. Looks as though I need to go back to June 30th, the day my father passed, and find out what the value of the shares/mutual funds were on the close of market that day but I don't even know where to start. Seems to me the bank that held the portfolios would have sent me a list of equities and prices, no? In the meantime we have an email out to our accountant to help guide us through the process. As for your second question, yes the heirs have all received their split. WXYZ I wouldn't classify myself as experienced lol, but I'm trying to learn as much as I can daily. I've followed this thread for 2 years now and can proudly say I have read every post on here since it's inception (took some catching up initially). I haven't posted but do make it a point to check in here every day for the education as well as the news and sentiment. In regards to the IRA and the stocks, I'm just gonna sit tight right now but do want to eventually sell them and add to my current positions. As far as capital gains, I can't seem to find the answer in my google fu on what percentages we may be taxed with these inherited stocks/funds if we were to sell everything in the near future? My guess is that once the step up/cost basis is figured out, we would pay short term capital gains on the difference of today's price since this was an inheritance and not a purchase on my behalf? Thanks for the well wishes!
@Husker My condolences on your loss. The first thing I would do is use the compare function in google finance and put all the stocks and mutual funds in see how they compare against the S&P500 on 1 month, 3 month, ytd and 5 year. Not that past performance is any promise of future performance but it will at least let you see which ones were stars and which ones were dogs. You may see that one or more of the stocks is worth holding onto. As for mutual funds, I'm not a fan because they usually have higher fees. With ETF's you get all the benefits of a mutual fund without the high fee's and tradability of a stock. I think you will find, as WXYZ and our old pall Warren have said that putting it all in the S&P500 for the long term is the best bet you can make.
Husker, In regards to the IRA , check to see if it is a Traditional IRA , or a ROTH IRA , traditional ira's are taxable withdrawals , roth ira's are NON TAXABLE withdrawals. If it is old (20-30 years) probably traditional. A (inherited) Traditional IRA , MUST be cashed out in (7?) years , I believe. check me on that. Also one other way to treat a traditional IRA is to CONVERT IT , from traditional to ROTH, but I can't remember if you can convert an Inherited IRA to ROTH, I believe so. And you have 3 years to pay the taxes on that , again check with your tax accountant on the actual rules involved here. I am not a CPA (but I did stay at a Holiday Inn last night) Lots of rules to follow with an inheritance. It's best to learn as much as you can Average Green Day yesterday UP.55% Looking good today
Tiresmoke, Thanks for the tip on the compare function on Google, I had not seen that before. Definitely will help the decision process going forward. Oldmanram, It is in fact a traditional IRA that must be cashed out in 10 years, this much I do know. What I want to know is the approximate percentage of capital gains tax we would pay if we were to cash out that IRA all at once. Not to mention what impact it will have on our annual taxes we pay. Waiting to hear back from the accountant, I'm sure he will clear some things up for us.
The tax on the IRA will NOT be capital gains.....it will be taxed as regular income to you at your regular income tax rate. As far as I know there is no...."step up in basis"....for an inherited IRA. You are correct on the 10 year distribution rule. And when you are ready to put the IRA in your name....it will be designated as an "inherited Ira" and can not be mixed in with any other IRA that you might have. If you have a broker....they will be able to give you the share price of each fund or stock on the date of death. I see you are at SCHWAB.....when my mom died and her account was distributed to the heirs in their SCHWAB accounts.....SCHWAB automatically adjusted the price per share for the step up in basis. I cant remember if there was some form telling them to do that. Your best bet would be to simply go in and meet with a SCHWAB rep with all your questions on these issues.....they will do all the leg work for you.
HERE are the current capital gains tax rates. The rate you pay will be based on your income. It will also be based on if you are married. It will range from...."0%"....to...."20%" https://www.bankrate.com/investing/long-term-capital-gains-tax/ If Biden passes his new tax plan these may change.....soon.
I also believe that.....ALL....gains on an inherited asset are considered "LONG TERM CAPITAL GAINS". "Any capital gain or loss that is the result of selling inherited stock is always long-term. This rule applies regardless of how long you or the original owner owned the shares. You are not responsible for taxes on any gain that occurred while the original owner was alive. However, you cannot use any capital loss on the shares that occurred prior to the date of death as a tax deduction." Of course....this information as well as all the above posts is based on "my understanding"...see your CPA to be sure.
"Your best bet would be to simply go in and meet with a SCHWAB rep with all your questions on these issues.....they will do all the leg work for you." from @WXYZ This crossed my mind as well. The benefit of using an Established broker (vs robinhood) is that they have real professionals and often provide free assistance. I would do all the research you can to educate yourself, then consult a professional to confirm your actions and fill in the gaps! It's ok to seek help.
Got it sorted out on Schwabs chat, duh. But for future reference, you can get a step up in basis from the brokerage that the funds came from OR you can have your current brokerage do it by filling out a form and sending that in along with a death certificate.
Now...the above....is what this board is for....to help people with issues and questions...as well as investing posting and discussion. Multiple people stepped in and contributed. That is what I LIKE about this board....everyone is willing to help. We have a good group of posters and now we have two more.......TireSmoke and Husker.
