I would change my advice on a parking place for emergency funds. IBonds. www.

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Feb 9, 2022
2:31:04pm

Acorn All-American

I would change my advice on a parking place for emergency funds. IBonds. www.

www.treasurydirect.gov. You can buy $10,000 a year per person, although I think it is always a good idea to keep an eye on the Vanguard base money market account as it tends to always be right near the top for short term interest (except when everything is near zero). Also, understand that IBonds are longer term so short term interest rates may be higher at times due to fed action, but IBonds will absolutely protect you against inflation risk no matter what, plus taxes are deferred until you pull it out.

This message has been modified

Originally posted on Feb 9, 2022 at 2:31:04pm

Message modified by Acorn on Nov 9, 2022 at 12:02:02pm

Message modified by Acorn on Aug 15, 2024 at 8:24:37am

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Acorn

Bio page: Acorn
Joined: Nov 25, 2004
Last login: Nov 22, 2024
Total posts: 19,589 (2,435 FO)

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Messages

Author

Time

Investing, donation in kind, donor advised funds, college savings, tithing doubl

Acorn

1/10/19 8:34am

The implication of doing a DIK and then using the tithing cash is that you are

supertux

1/10/19 8:46am

For a given year, I have paid in just about every month of the year

Acorn

1/10/19 8:55am

With the new tax law do you only do your DIK every other year?

supertux

1/10/19 2:08pm

When it changed last year in December, I quickly made a direct DIK

Acorn

1/10/19 3:12pm

Serious question: How can I keep this post forever?

PabloSanchezz

1/10/19 9:00am

From the Board menu, you mark it as a favorite.

Acorn

1/10/19 9:03am

My dad did this all growing up and I understood the advantages then, but he passed away before I was ready to implement

mvtoro

1/10/19 9:05am

So it sounds like you (obviously) have a large enough account in your brokerage

TheLoneCougar

1/10/19 9:08am

Your questions are excelent

Acorn

1/10/19 9:26am

I have a question that you may be able to answer

rtNelson

6/9/19 12:24pm

Woops, was meant for main thread.

rtNelson

6/9/19 12:26pm

What do you do for tithing when the market is down?

bricej13

1/10/19 9:10am

If you are investing over the long term, once you have a base

Acorn

1/10/19 9:32am

Thanks, that makes sense

bricej13

1/10/19 10:28am

Don't forget about the 0.00 expense ratio Total Stock Market Fidelity fund!

daxman

1/10/19 9:18am

There are a number of houses that have a few zero cost index fees

Acorn

1/10/19 9:35am

Help me understand reinvesting dividends

Styro

1/10/19 10:34am

I was also interested in this. It resets the whole lot? Seems odd

BYUFootballisBack

1/10/19 10:54am

It resets the position as a whole

Acorn

1/10/19 1:06pm

I asked my accountant this question after I joined the Acorn cult

SaturdaySpecialDay

1/10/19 11:26am

So basically the DRIP dividends don't reset the lot clock, but its more work or

BYUFootballisBack

1/10/19 11:35am

Correct. l specify the date of purchase and # of shares so that, if audited, the IRS has no basis to conclude

SaturdaySpecialDay

1/10/19 11:41am

I keep records including the DIK form I send to the Church. My accountant (who is not a member of the Church) thinks

SaturdaySpecialDay

1/10/19 11:42am

My understanding of what Acorn wrote was that the whole lots date gets reset to

BYUFootballisBack

1/10/19 12:10pm

Posting an update on this thread after talking to my brokerage about how to track which lots get donated for tax purpose

SaturdaySpecialDay

1/17/19 1:16pm

This should answer the question about "do I reset the clock each time I reinvest dividends?" (no, as long as

SaturdaySpecialDay

1/17/19 1:19pm

The reason I don’t reinvest is I typically exit positions

Acorn

1/17/19 1:28pm

Yup I see what you were saying and agree there are multiple ways to do this. Thanks again for bringing this to CB.

SaturdaySpecialDay

1/17/19 3:07pm

I feel like I need a phone call with one of you experts to understand all this.

TheLoneCougar

1/10/19 12:21pm

Here's the thing. Start by investing. Frankly, that is the hard part

Acorn

1/10/19 1:02pm

No worries there.

TheLoneCougar

1/10/19 1:08pm

I can already tell by your questions you are going to rock this thing

Acorn

1/10/19 1:20pm

That almost made me spit out my water when I laughed.

Acorn

1/10/19 1:27pm

It is more personal preference than anything. Some things to think about

Acorn

1/10/19 12:58pm

Question on using a Donor Advised Fund instead of doing the DIK directly to the

Walt Longmire

1/10/19 1:52pm

I checked the fees at Schwab. IIRC, it is 0.6% and my interest rate

Acorn

1/10/19 3:19pm

Thanks for the details on the logistics of how it works. That's helpful in

Walt Longmire

1/10/19 5:27pm

does the DAF contribution need to be at least 12 months old like DIK for the

hdogg

1/10/19 2:58pm

No, once you put it into the DAF you immediately take the tax deduction. Once

supertux

1/10/19 3:09pm

my understanding with DIK under 12 months is you pay taxes on the short term gai

hdogg

1/10/19 3:24pm

<< Deleted >>

supertux

1/10/19 3:28pm

A DIK can be made to a DAF, or a DIK can be made to the church.

Acorn

1/10/19 3:21pm

say you donate stock worth 10k then appreciates to 15k, you're better with DIK

hdogg

1/10/19 3:54pm

Tax avoidance is illegal, this is a legal tax deduction 😉 I know what you meant

BYUFootballisBack

1/10/19 4:08pm

I'd say tax avoidance is perfectly legal. It's finding the most efficient way to

Walt Longmire

1/10/19 5:30pm

I knew there was another word I was mistaking avoidance for

BYUFootballisBack

1/10/19 8:29pm

Man, I wish I had remembered this stuff a couple weeks ago.. 🙁

timpjynx

1/10/19 5:50pm

Seriously, thank you for doing this. People like you are the only reason

Machiavelli

1/11/19 11:14am

I'm still trying to wrap my head around all of this

spidey24

1/11/19 4:36pm

It is difficult to recommend a specific plan without more details

Acorn

1/12/19 9:16am

Also works really well if your company has an ESPP plan. I did DIK for the first

Cougar8Duck

1/11/19 11:37pm

ESPP's are great. Two things to remember with Employee Stock Purchase Plans

Acorn

1/12/19 8:57am

Yes

Cougar8Duck

1/12/19 10:40am

ESPP regulations are determined by the company. I have no mandatory holding

TheLoneCougar

1/12/19 1:04pm

Yes and no. That's great that they don't chose to force you to hold until

Cougar8Duck

1/12/19 1:24pm

Does bunching tithing benefit you even if you easily clear the SD every year

jkccoug

4/1/19 12:16pm

To put it simply, if your SALT plus your mortgage interest is less than

Acorn

5/5/19 8:03pm

Using DAF for missions, fast offerings, etc.

PresidiCoug

4/1/19 12:29pm

That is correct. Having been through the process now several months (DAF

Acorn

5/5/19 8:06pm

Schwab DAF-- do I need to get my "stake" listed or can I just make donation to

jkccoug

5/6/19 12:40pm

Nevermind-- I see answer is above.

jkccoug

5/6/19 12:41pm

I would change my advice on a parking place for emergency funds. IBonds. www.

Acorn

2/9/22 2:31pm

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