No Stupid Questions Thread?

[just]

Anyone have any stupid questions so mine won't be lonely?

[just]

I use target date funds for my work 403b at Fidelity and my Roth IRA, and IRA at Vanguard. I have an inheritance that I used to open a brokerage account with Vanguard where I'm trying out a 3-fund portfolio with ETFs and that seems to be going ok.

I heard once that if you like a company and think they're doing good things, that it can be a good place to buy shares. I have a company in mind, and the shares are like $20 right now. I'd like to buy just one share just to try it out and I don't care what comes of it.

In this case, can I just buy that one share from my existing brokerage account? There's no fee that I can see of? Or should I start looking into other trading platforms like Robinhood or the like?

Thanks.

[keweenawlove]

just
I'm using Robinhood for a similar thing with some "fun money". It's nice because you can buy partial stocks too. If you want to sign up, here's my referral link. You get a free stock when you sign up.
join.robinhood.com/karenk321

[ohgillian]

Jun 14, 2021 15:41:11 GMT -5 just said:

I use target date funds for my work 403b at Fidelity and my Roth IRA, and IRA at Vanguard. I have an inheritance that I used to open a brokerage account with Vanguard where I'm trying out a 3-fund portfolio with ETFs and that seems to be going ok.

I heard once that if you like a company and think they're doing good things, that it can be a good place to buy shares. I have a company in mind, and the shares are like $20 right now. I'd like to buy just one share just to try it out and I don't care what comes of it.

In this case, can I just buy that one share from my existing brokerage account? There's no fee that I can see of? Or should I start looking into other trading platforms like Robinhood or the like?

Thanks.

I do this within my existing brokerage account - having accounts at multiple places isn't my preference. There may not be a fee; I have fee-free trades at Vanguard, so you  may have the same.

[ohgillian]

My question:

If you own your home, what do you use as your home's value in a net worth calculation? I've been using our last appraised value less the mortgage balance forever, because I read someone else on this board doing that, but the appraisal is over a decade old at this point and seems so meaningless. I know it's up to me and doesn't really matter, I'm just curious what other people do.

[trissie18]

Jun 16, 2021 11:24:29 GMT -5 ohgillian said:

My question:

If you own your home, what do you use as your home's value in a net worth calculation? I've been using our last appraised value less the mortgage balance forever, because I read someone else on this board doing that, but the appraisal is over a decade old at this point and seems so meaningless. I know it's up to me and doesn't really matter, I'm just curious what other people do.

Since our appraisal is within the last two years that is the number I am using. I know Zillow isn't a great resource but it may be at least be a more current data point?

[ohgillian]

Jun 16, 2021 12:38:17 GMT -5 trissie18 said:

Jun 16, 2021 11:24:29 GMT -5 ohgillian said:

My question:

If you own your home, what do you use as your home's value in a net worth calculation? I've been using our last appraised value less the mortgage balance forever, because I read someone else on this board doing that, but the appraisal is over a decade old at this point and seems so meaningless. I know it's up to me and doesn't really matter, I'm just curious what other people do.

Since our appraisal is within the last two years that is the number I am using. I know Zillow isn't a great resource but it may be at least be a more current data point?

Thanks, this is kind of what I was thinking too. I only learned about "zestimates" like 2 weeks ago, but that seems like a decent measure. 

[Susie]

Jun 16, 2021 11:24:29 GMT -5 ohgillian said:

My question:

If you own your home, what do you use as your home's value in a net worth calculation? I've been using our last appraised value less the mortgage balance forever, because I read someone else on this board doing that, but the appraisal is over a decade old at this point and seems so meaningless. I know it's up to me and doesn't really matter, I'm just curious what other people do.

I use the Zillow number except for a few brief time periods when there's a better number, like "just bought/appraised" or right now we're under contract to sell for a set price, so that price is exactly what it's worth to me.  

I am 100% clear about the arbitrary nature of the zestimate number, but on our old house, a 2021 zestimate is way more accurate than using a 2008 purchase price or our 2010 last appraised value.

Our zestimate has been pretty well in line with sales in the neighborhood over the years.  I know that isn't true in all areas, but it is in ours.

[ellipses84]

ohgillian I usually take Zillow estimates with a grain of salt, because I’ve seen them be way off especially if the house hasn’t sold in a long time. However, you can look at a map of your neighborhood and filter it to show all the recently sold homes and take your own average of the comps for similar size home (SF/ bedrooms/ year built/ similar condition) like you would for an appraisal. I’d estimate low, because I don’t want my net worth to go down, but in this market I’m sure it’s worth a lot more than when you purchased it.

[k3am]

Is it worth it to exercise employer stock options and hold onto the shares? The stock has historically paid a dividendthat would equal ~5% annual return. Is there something else I need to think about? It is a steady performer, not a very risky stock, typically has a "hold" rating by analysts, and even when we have slow quarters, the dividend hasn't been changed in the 6 years I've been here.

[konapoppy]

Jun 16, 2021 11:24:29 GMT -5 ohgillian said:

My question:

If you own your home, what do you use as your home's value in a net worth calculation? I've been using our last appraised value less the mortgage balance forever, because I read someone else on this board doing that, but the appraisal is over a decade old at this point and seems so meaningless. I know it's up to me and doesn't really matter, I'm just curious what other people do.

I used the assessed value for a long time. But now my home would sell for an insane amount more, so I bumped it up closer to what comps are in the neighborhood.

[numbers]

Jun 16, 2021 11:24:29 GMT -5 ohgillian said:

If you own your home, what do you use as your home's value in a net worth calculation?

I take a swag based on recent sales in our area. I also use a formula to account for 2-3% appreciation annually, which is probably low but I'd rather be conservative on the estimate.

[gt7301b]

Jun 16, 2021 16:49:01 GMT -5 k3am said:

Is it worth it to exercise employer stock options and hold onto the shares? The stock has historically paid a dividendthat would equal ~5% annual return. Is there something else I need to think about? It is a steady performer, not a very risky stock, typically has a "hold" rating by analysts, and even when we have slow quarters, the dividend hasn't been changed in the 6 years I've been here.

I wouldn't want to have more than 5-10% of my overall net worth in my employer's stock. I would hate to end up in an Enron situation where I lose both my job and retirement.

[mlkgls]

ohgillian, I’ve been using my most recent refi appraisal, but in this market I think the value is somewhere in between the appraisal and zillow value as my appraisal is nearly a year old. I have no plans to sell anytime soon so it all feels like Monopoly money anyway.

@@@ My turn...my beloved grandfather passed down a decent amount of old silver coins to me with the intention that I would give them to my son. It’s enough to fill a large Danish butter cookie Christmas tin. I haven’t looked at them in years, but the collection was started by my great-grandparents so there is an emotional attachment to them. I’m assuming there is more sentimental value than monetary value, but what do I do with it? Leave it in the tin?

[ohgillian]

mlkgls So you definitely want to keep it all and the question is just about storing it? Or are you potentially interested in finding out the monetary value?

[mlkgls]

ohgillian, probably a little of both. It’s a substantial amount of loose change, all pre-1960s. It’s hidden away due to some of it being stolen in the past, but it just feels like it should be stored and organized better. I’m sure my grandfather would have been delighted if it was worth real money, but I highly doubt it.

[minzy]

mlkgls I’ve been handed down a similar sized bin of old nickels from my grandfather. My father swears they are “worth something.” Wikipedia reminded me that today a nickel is 25% nickel and 75% copper, but from the latter part of 1942 until 1945, “war nickels” were made of 56% copper, 35% silver, and 9% manganese. The value there I think is in the actual silver. I haven’t done anything with mine though, so who knows.

[numbers]

Jun 17, 2021 19:22:21 GMT -5 mlkgls said:

@@@ My turn...my beloved grandfather passed down a decent amount of old silver coins to me with the intention that I would give them to my son. It’s enough to fill a large Danish butter cookie Christmas tin. I haven’t looked at them in years, but the collection was started by my great-grandparents so there is an emotional attachment to them. I’m assuming there is more sentimental value than monetary value, but what do I do with it? Leave it in the tin?

My father is a coin collector and stores his collection in binders using special plastic sleeves meant for coin collecting. I'd probably look into something like that?

[k3am]

Jun 17, 2021 19:17:20 GMT -5 gt7301b said:

Jun 16, 2021 16:49:01 GMT -5 k3am said:

Is it worth it to exercise employer stock options and hold onto the shares? The stock has historically paid a dividendthat would equal ~5% annual return. Is there something else I need to think about? It is a steady performer, not a very risky stock, typically has a "hold" rating by analysts, and even when we have slow quarters, the dividend hasn't been changed in the 6 years I've been here.

I wouldn't want to have more than 5-10% of my overall net worth in my employer's stock. I would hate to end up in an Enron situation where I lose both my job and retirement.

We'd be <2% if I exercise what's vested and worth exercising so far. 1/3 of what I've got is priced high enough not to be worth exercising. 

[mcsangel2]

Jun 17, 2021 21:43:48 GMT -5 mlkgls said:

It’s a substantial amount of loose change, all pre-1960s. It’s hidden away due to some of it being stolen in the past, but it just feels like it should be stored and organized better. I’m sure my grandfather would have been delighted if it was worth real money, but I highly doubt it.

Are they all US coins? If so, if you give me the breakdown of how many dollars, half dollars, quarters, and dimes there are (nickels are not silver except for a few WWII years), I can give you the current estimate of what they are worth right now (silver is high these days, high enough that the silver melt value is likely to be higher than the value of a particularly rare coin you MIGHT have).

Most coin books with plastic sleeves and most plastic flips are made with pvc which is bad for silver coins. You can get non pvc sleeves, but they are expensive. After all this time, though, since they won't have been kept carefully, there isn't really a point in spending a lot of money to keep them that way going forward. Most collectors who have something similar keep them in wooden boxes.

[just]

Jun 16, 2021 11:24:02 GMT -5 ohgillian said:

Jun 14, 2021 15:41:11 GMT -5 just said:

I use target date funds for my work 403b at Fidelity and my Roth IRA, and IRA at Vanguard. I have an inheritance that I used to open a brokerage account with Vanguard where I'm trying out a 3-fund portfolio with ETFs and that seems to be going ok.

I heard once that if you like a company and think they're doing good things, that it can be a good place to buy shares. I have a company in mind, and the shares are like $20 right now. I'd like to buy just one share just to try it out and I don't care what comes of it.

In this case, can I just buy that one share from my existing brokerage account? There's no fee that I can see of? Or should I start looking into other trading platforms like Robinhood or the like?

Thanks.

I do this within my existing brokerage account - having accounts at multiple places isn't my preference. There may not be a fee; I have fee-free trades at Vanguard, so you  may have the same.

Thanks. I just bought the one share in my brokerage account at vanguard to streamline everything. Taxes are already so messy with the various funds across DH and I.

It’s already lost 5% so it’s clear I’m not a stock savant . But for $20, I’m having fin watching it.

[Wallflower]

I am trying to manage my mother's finances. She's 89 and *mostly* cognitively intact, but forgetful about somethings, so I took over the bills, taxes, etc.

She has never been one to dig too deeply into her finances - for example, she inherited an account from her mother and just left it at that institution and in that fund, never moved it. She received some a large chunk of money from something else, set it up in one account, and it's sat there for 20+ years.

Anyway, I have the 1099s from dividend payout from one of these accounts, but nothing else. So, here's my "not stupid" question ... am I right in thinking that the dividend payout amount, divided into what she received from them, should tell me how many shares she has? And multiplying that by the current share price should tell me how much that account is worth?

I am trying to get online access, but I need to dig through Mom's paperwork to get her account number. And I'm trying to figure out how much I care - if it's an account with $5k vs. $250k will make a difference how much effort I put in now. (I know that eventually, I'll have to deal with it somehow.)

[quesyrah]

I recently sold my parents house and moved them into a memory care home. It just occurred to me I will need to do their taxes next year.

Our taxes are very simple. We receive one W-2 from DH’s employer and take the standard deduction.

I’m assuming they’ll receive W-2 or something from their retirement accounts? Anything else I might need to think of to file for them? Neither one is able to sign or fill out forms but I do have POA.

[Wallflower]

quesyrah, it will all depend on how complicated their finances are. For my mother, I receive a form from the SSA and her different financial institutions. We track separately her property/school taxes (no form sent by the city/state) and any charitable donations. Also, anything she pays for medical, including prescriptions and long-term care insurance (partially pre-tax at the state level, not federal). She sticks to one pharmacy and they can give her a printout at the end of the year showing what she's spent. Then I use QuickBooks and just punch the numbers in. QB figures out the rest.

One head's up - SSA is tax-free up to a certain income level. It totally confused me the first time because ... well, because I'm an idiot. I had it in my head that it was just not taxed. God knows why.

[tealblue]

Jun 21, 2021 11:17:13 GMT -5 quesyrah said:

I recently sold my parents house and moved them into a memory care home. It just occurred to me I will need to do their taxes next year.

Our taxes are very simple. We receive one W-2 from DH’s employer and take the standard deduction.

I’m assuming they’ll receive W-2 or something from their retirement accounts? Anything else I might need to think of to file for them? Neither one is able to sign or fill out forms but I do have POA.

They should get a form from their Social Security and also their retirement accounts.

You’ll also need to account for the sale of their house. depending on their market/sales price and their basis in the house (purchase price + any renovations), could potentially have a gain. They could exclude up to $500k in gain if they lived there 2 of the last 5 years.
Also, potentially they could deduct the cost of their memory care facility on their taxes as a medical expense. Turbo tax or something should easily walk you through this but you may want to get assistance if it’s too much to take on.

Not sure the size of your parents finances but it may be good to reach out to a CPA or a finance professional (sometimes Financial advisory firms have in house CPA’s if your parents have a financial advisor.). But just good to make sure nothing is missed. Also, try and find a copy of their last year taxes so you can see which forms they’ve received in the past and wait until you get those again for 2021 (make sure you don’t file too early and then get a form later).

[quesyrah]

Thanks for the advice! I am definitely going to look into deductions for the cost of their facility. Their bill is just over $16,000 a month so that would g a huge help!!

[simpsongal]

Does anyone know the tax implications re sale of a second home out of state? Is the profit taxed at the capital gains rate?