Originally Posted by Rain Man:
So by holding it in an IRA, you end up paying a higher tax on the gains.
Now, it's still better to put it in an IRA because it's pre-tax money going in, which gives you a bigger investment, and the taxes are deferred for many years, but I'd never thought about the fact that you take a bigger bite coming out.
Am I thinking about this right? Do I have any wrong assumptions?
I would consider the state tax implications for those of us living in states that have state income tax. A lot of states will limit or exempt retirement income entirely, and IRA distributions are included in that, whereas no such limitation/exemption exists for capital gains taxed by the state. [Reply]
Originally Posted by Rain Man:
So by holding it in an IRA, you end up paying a higher tax on the gains.
Now, it's still better to put it in an IRA because it's pre-tax money going in, which gives you a bigger investment, and the taxes are deferred for many years, but I'd never thought about the fact that you take a bigger bite coming out.
Am I thinking about this right? Do I have any wrong assumptions?
Leaves out all the years of dividend tax drag though.
On the other hand, if you retire early or only have social security, you might be able to use 0% LTCG rate. I believe It goes up to 100k for a couple with standard deduction [Reply]
Silicon Valley Bank just went tits up. I have a friend in the start up aerospace industry. Their company may have just lost almost all their cash and have about 4 months of money left on hand. [Reply]
Originally Posted by BigBeauford:
Silicon Valley Bank just went tits up. I have a friend in the start up aerospace industry. Their company may have just lost almost all their cash and have about 4 months of money left on hand.
Very dark situation. Never thought I'd see a bank-run at this scale. The bottom line is SVB bought up too many assets with zero percent interest rates and when the fed raised the rates couldn't survive their CEO giving some dumbass "hey don't panic guys" speech. Disaster. [Reply]
Originally Posted by BigBeauford:
Silicon Valley Bank just went tits up. I have a friend in the start up aerospace industry. Their company may have just lost almost all their cash and have about 4 months of money left on hand.
FDIC coverage on any of it?
I have a little bit of capital outside of FDIC coverage. Perhaps I should check on the fiscal health of my bank. [Reply]
Originally Posted by Buehler445:
FDIC coverage on any of it?
I have a little bit of capital outside of FDIC coverage. Perhaps I should check on the fiscal health of my bank.
They will cover $250k, but only about $20B of their $170B is insured/protected. The company was scrambling to pull their money out, but $50M might be just gone. [Reply]
Originally Posted by BigBeauford:
They will cover $250k, but only about $20B of their $170B is insured/protected. The company was scrambling to pull their money out, but $50B might be just gone.
Holy fuck.
That is MUCH more than I have uncovered.
That makes me want to puke just thinking about it. And I can’t wrap my head around 50B.
Originally Posted by BigBeauford:
They will cover $250k, but only about $20B of their $170B is insured/protected. The company was scrambling to pull their money out, but $50B might be just gone.
Originally Posted by BigBeauford:
They will cover $250k, but only about $20B of their $170B is insured/protected. The company was scrambling to pull their money out, but $50B might be just gone.
Regardless, HOPEFULLY they didn't tank so quickly that their assets are dramatically lower than deposits. That article says they had about $209B in assets vs. $175B in deposits as of December, so presumably people won't lose their asses TOO badly once everything gets liquidated and distributed. Could be messy during that process, though. [Reply]
Regardless, HOPEFULLY they didn't tank so quickly that their assets are dramatically lower than deposits. That article says they had about $209B in assets vs. $175B in deposits as of December, so presumably people won't lose their asses TOO badly once everything gets liquidated and distributed. Could be messy during that process, though.
Ultimately, hopefully another bank can take over the assets and liabilities with minimal exposure to clients. But that does very little in terms of meeting cash flow requirements for a business [Reply]
Regardless, HOPEFULLY they didn't tank so quickly that their assets are dramatically lower than deposits. That article says they had about $209B in assets vs. $175B in deposits as of December, so presumably people won't lose their asses TOO badly once everything gets liquidated and distributed. Could be messy during that process, though.
No, talking about the friend's company. Their CFO was there at the 11th hour trying to pull all their money out. [Reply]
They had to raise 2.25 billion to shore up their balance sheet but no investor was willing to help. Banks make money off of interest rates. If interest rates are high, people don’t wanna take out loans and therefore banks don’t make money [Reply]