[kkingston57]

Originally Posted by Babubhat

2022 Obamacare subsidy calculator | healthinsurance.org

You may have the ability to control the income for the subsidy calculation by shifting income or creating deductions. Take a bit of planning. It’s too late if you wait until filing. Ask your tax advisor . It has a terrible cliff to it

Watch out for those sneaky capital gains taxes if you own mutual funds. In my case I do not see the income but it did come up and bite me in the(you know the word)

[Stu from NYC]

Originally Posted by kkingston57

Watch out for those sneaky capital gains taxes if you own mutual funds. In my case I do not see the income but it did come up and bite me in the(you know the word)

Every time we sit down with cpa about tax return those things pop up. Very annoying.

[retiredguy123]

Originally Posted by kkingston57

Watch out for those sneaky capital gains taxes if you own mutual funds. In my case I do not see the income but it did come up and bite me in the(you know the word)

With mutual funds, there are two ways you can owe capital gains taxes. One way is for the fund manager to sell individual stocks within the fund and issue a capital gains distribution to the fund shareholders. The other way is if you sell some of your fund shares yourself that have appreciated in value. In either case, you will see the income unless you have directed the fund manager to reinvest the capital gains distributions by buying additional shares of the fund. In that case, you will see the income as additional shares in your fund account.

For the mutual funds that I own, I direct the fund manager to transfer all capital gains distributions and dividends into my money market account. That way, I always have the same number of mutual fund shares in my account, and the income shows up as a deposit into my money market account. But either way, the income is taxable.

[Michael G.]

Originally Posted by retiredguy123

With mutual funds, there are two ways you can owe capital gains taxes. One way is for the fund manager to sell individual stocks within the fund and issue a capital gains distribution to the fund shareholders. The other way is if you sell some of your fund shares yourself that have appreciated in value. In either case, you will see the income unless you have directed the fund manager to reinvest the capital gains distributions by buying additional shares of the fund. In that case, you will see the income as additional shares in your fund account.

For the mutual funds that I own, I direct the fund manager to transfer all capital gains distributions and dividends into my money market account. That way, I always have the same number of mutual fund shares in my account, and the income shows up as a deposit into my money market account. But either way, the income is taxable.

We live, we learn, we act

[OrangeBlossomBaby]

Originally Posted by retiredguy123

The people hurt most by inflation and low interest rates are those with substantial savings and invested assets. Not only is your purchasing power affected, but your entire portfolio loses value. At least in the 1970's and 1980's, you got a decent return on fixed income investments, like money market accounts and CDs. I hope that interest rates will soon increase to correct this situation. Currently, savers are being severely punished.

Feel free to give me all of your substantial savings and invested assets. I'll be more than happy to suffer in your place.

You can clip coupons and look for sales at the supermarket to see if you can save a buck on a couple pounds of ground beef. I'm sure you'll have a blast.

[Stu from NYC]

Originally Posted by OrangeBlossomBaby

Feel free to give me all of your substantial savings and invested assets. I'll be more than happy to suffer in your place.

You can clip coupons and look for sales at the supermarket to see if you can save a buck on a couple pounds of ground beef. I'm sure you'll have a blast.

People who have lived under their means to save for retirement and want to keep their money safe are being hurt badly by very low interest rates.

Glad to see rates going back up to a more reasonable level.

[retiredguy123]

Originally Posted by OrangeBlossomBaby

Feel free to give me all of your substantial savings and invested assets. I'll be more than happy to suffer in your place.

You can clip coupons and look for sales at the supermarket to see if you can save a buck on a couple pounds of ground beef. I'm sure you'll have a blast.

Interesting post. My point was that some people are savers and some are spenders. I am a saver and always have been. I think that people should have a right to save money. I have accumulated far more money than I will ever spend. Most people want to talk about inflation in terms of their current income and the higher cost of the products that they buy every day. But, to me and other savers, there is a huge deficit between the artificially low interest rates and the inflation rate. The interest rates are artificial because they are not based on the normal supply and demand equation for money. The Federal Reserve is stacking the deck. So, for example, if you have $100K earning a measly 2 percent, and the inflation rate is 8 percent, you are actually losing $6,000 every year in buying power and real wealth regardless of what you spend for food or other essential items. If you have a million dollars or more, the effect is much worse. I am not asking for sympathy, but I think we should encourage and reward savers as a responsible policy.

[CoachKandSportsguy]

///

[MartinSE]

Originally Posted by retiredguy123

Interesting post. My point was that some people are savers and some are spenders. I am a saver and always have been. I think that people should have a right to save money. I have accumulated far more money than I will ever spend. Most people want to talk about inflation in terms of their current income and the higher cost of the products that they buy every day. But, to me and other savers, there is a huge deficit between the artificially low interest rates and the inflation rate. The interest rates are artificial because they are not based on the normal supply and demand equation for money. The Federal Reserve is stacking the deck. So, for example, if you have $100K earning a measly 2 percent, and the inflation rate is 8 percent, you are actually losing $6,000 every year in buying power and real wealth regardless of what you spend for food or other essential items. If you have a million dollars or more, the effect is much worse. I am not asking for sympathy, but I think we should encourage and reward savers as a responsible policy.

Spenders or Savers? That is the only two choices? Seriously? I guess I don't fit in then, just like everything else. Life is seldom black and white, spender and saver, liberal and progressive. Everyone I know has much more complexity than that.

[Stu from NYC]

Originally Posted by retiredguy123

With mutual funds, there are two ways you can owe capital gains taxes. One way is for the fund manager to sell individual stocks within the fund and issue a capital gains distribution to the fund shareholders. The other way is if you sell some of your fund shares yourself that have appreciated in value. In either case, you will see the income unless you have directed the fund manager to reinvest the capital gains distributions by buying additional shares of the fund. In that case, you will see the income as additional shares in your fund account.

For the mutual funds that I own, I direct the fund manager to transfer all capital gains distributions and dividends into my money market account. That way, I always have the same number of mutual fund shares in my account, and the income shows up as a deposit into my money market account. But either way, the income is taxable.

Interesting but a question. If fund is doing well (and you do not need funds for current expenses) why not reinvest capital gains and dividends? Especially since interest rates are pitifully low right now.

[karostay]

Originally Posted by Michael G.

Inflation is rough on retired seniors on fix income everywhere.
Coping with the high cost of gas, cars, food, and many
other products, what's your plan on fighting inflation?

Do you drive less?
Do you eat out less?
Do you socialize more with friends at home?
Did you cancel travel plans this year?

Just curious on how you're dealing with 2022 so far.

Cheers !

Wonder what caused this predicament everything was fine about 14 months ago

[Bill14564]

Originally Posted by karostay

Wonder what caused this predicament everything was fine about 14 months ago

Wasn't that during the Covid restrictions and lockdowns with hundreds of thousands out of work, tens of thousands dying each month, and the economy tanking? Is that part of the "everything" that was fine?

[CoachKandSportsguy]

now us working stiffs have fixed income as well, its called a salary. . . I don't know about your working days, but I don't get commissions nor a bonus, so its not just retired people who live on fixed income. . .

[retiredguy123]

Originally Posted by Stu from NYC

Interesting but a question. If fund is doing well (and you do not need funds for current expenses) why not reinvest capital gains and dividends? Especially since interest rates are pitifully low right now.

It's a personal choice. I like to know exactly how many shares I have all the time, and my cost basis. It makes monitoring my investments more structured. I can always go online and purchase additional shares by just doing an online transfer from my money market account back to the mutual fund. With the automatic reinvestment feature, you get no advanced warning about how many shares they are buying for you or the amount. So, you may be automatically buying shares in one mutual fund, when it may make more sense to buy shares in a different fund. The reinvestment purchase option is too automatic. I prefer to do it manually and control the timing of share purchases.

[Stu from NYC]

Originally Posted by retiredguy123

It's a personal choice. I like to know exactly how many shares I have all the time, and my cost basis. It makes monitoring my investments more structured. I can always go online and purchase additional shares by just doing an online transfer from my money market account back to the mutual fund. With the automatic reinvestment feature, you get no advanced warning about how many shares they are buying for you or the amount. So, you may be automatically buying shares in one mutual fund, when it may make more sense to buy shares in a different fund. The reinvestment purchase option is too automatic. I prefer to do it manually and control the timing of share purchases.

Understand. As long as the fund is doing well I have no problem reinvesting. If funds stops doing well for a period of time, than it is time for that fund to go away.