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Correction , I believe the sipc insurance is similar to FDIC , where the limit is $250k per entity. So accpunt held in each individual name is $250k insured, living trusts another I think it’s like FDIC insurance is $250k per beneficiary.
I read through the FDIC insurance rules back in 2010. Haven’t read through the sipc rules completely.
Swvxx is like a mutual fund it’s not on the balence sheet of Schwab. The issue you need to worry about is if you have cash sitting in your account (for example waiting for 1-2 weeks for a CD settlement date ) you want to make sure the total of your cash sweep in all accounts is under the insured limits of $500k.
https://www.schwab.com/legal/sipc-account-protection
Also the issue with SVB , based on colleagues up there that are CFOs of startup companies is access to the money, not that it’s disappeared. It depends how the company held the funds. For example in most cases the startups use SVB and similar to Schwab they buy MM funds feom other providers such as wells Fargo ,etc. So those funds aren’t on SVBs balance sheet either. But since the FDIC shut the bank down, people can’t access those funds being managed by SVB.The immediate issue is access to those funds are frozen, for many startups, it’s hard to pay short term expenses like payroll .
I’m going through this right now. Personally I think anything longer than 2 years is a long time with inflation, with the latest tenant laws, puts landlords at a disadvantage, unfortunately for good tenants thanks to AB-1482.
Unless your property is “exempt” from AB-1482, you are limited to rent increases of up to 10% per year. So if you’re a landlord that in the past never raised rates, you might be in a interesting situation in which you are really far behind from current market rents, and with inflation, you won’t ever catch up even if you were able to raise rates 10% each year for several years. Furthermore, if your property isn’t “exempt”, there’s only a small limited number of “no-fault” reasons you can evict/get rid of the existing tenant, and in the case of a “no-fault” termination/eviction, I think you owe at least 30 days rental credit to the person.
Because of this, I stopped my old policy of never raising rent, and raise it every 2 years a bit just so I won’t fall that far behind.
Now technically, most SFH and attached properties that individuals rent out are exempt from AB-1482. But that’s only the case if you notified your existing tenant that your property was exempt from AB-1482 before the 2020 deadline.. Many people who had old leases that preceded that didn’t properly notify the tenant that the property is exempt, and therefore technically, unless you signed a new lease with the old tenant clearly stating that the property in question is exempt from AB-1482, it technically ISNT exempt from AB-1482…
So regardless of what sort of length terms you plan on renewing with your tenant, you want to make sure your lease contract clearly states it’s exempt from AB-1482, and if it’s up for renewal it’s probably a good idea to have a new lease contract with those new papers that clearly states the property is exempt.
Times like these I also recommend getting a professional property manager that can walk you through this and make sure your lease contracts are correct. Otherwise you might get screwed.
Not financial advice, but the RSU and ESPP stock sales strategy should be based on how stable you think the company’s stock is.
When I worked at Intuit, there was no point in being in a hurry to sell RSU and ESPP shares because back them the stock didn’t move much….And even now, they are pretty much recession proof.
When I worked at a new fledging startup that IPOed, you wante to sell as much stock options, stock, and ESPP as possible because in smaller companies, there are “lockup windows”, and you don’t want to get stuck holding onto a newly issued stock that tanks after the initial hype. A lot of people hold onto ESPP shares for the “tax advantage” benefit, but the big assumption here is you sell at a gain. In a lot of cases, especially at small tech companies, holding onto ESPP shares ends up paying ordinary income on vested shares, and then carrying over a lot of capital gain losses in successive years. Back to the the startup company that I worked at that IPOed. ESPP shares were granted at $125/share a few times. Those that held for the “taxable advantage” of holding long term ended up carrying over capital losses when the stock tanked $10/share 6months later.
A wise friend once told me it’s much wiser to pay more taxes on gains from stock sale then to incur capital loss carryovers trying to hold on to something too long just to save a few thousand extra on taxes.
That’s why I tend to sell my ESPP and RSU shares when they vest. Because you never know if it will be better years from now, of if the tech company goes under.
Yes, our tax laws are pretty complicated, and when it comes to investments it makes a difference between What is recognized as capital gains and what is recognized as income.
Capital gain losses are limited to $3000 per year, I think, and the rest has to be carried over.
This is particularly an issue if a company gives you RSU stock grants and ESPP stock plan. For RSU stocks, when your RSU stocks vest, the fair market value of those vested shares is considered “ordinary income” and you will owe taxes that year. So for example if 1000 RSU shares best at $100/share that day, you will pay ordinary income taxes on $100k. If you sell the RSU stock , the proceeds from that stock sale is capital gain or los, with the cost basis being $100/share. So for example, if you sell the RSU a month later, if the stock price is $90, you have a capital loss of $10k, of which only -$3000 goes on this year tax and the remaining -$7000 you carry over to next year. The IRS wants its money now from your vesting , and they limit what you can report as a loss to offset income to $3000.
For that reason, when it comes to RSU or ESPP shares, I usually just do a same day sale. If your company does well, your invested shares and future ESPP shares will more than compensate you. And if your company doesn’t do well, there’s no point in keeping so many shares and wealth transfering your money to the CEOs that do regular time sales of their shares.
CA FTB rarely deviates from IRS, it would create a tax filing nightmare. So they also announced extending it for disaster impacted areas..
Sacramento – The IRS announced tax relief for Californians affected by these winter storms. Taxpayers affected by these storms qualify for an extension to October 16, 2023, to file individual and business tax returns and make certain tax payments. This includes:
Individuals whose tax returns and payments are due on April 18, 2023.
Quarterly estimated tax payments due January 17, 2023, April 18, 2023, June 15, 2023, and September 15, 2023.
Business entities whose tax returns are normally due on March 15 and April 18.
PTE Elective Tax payments due on June 15, 2023.
The following counties are eligible for this extended tax relief, per the IRS January 10 announcement and IRS January 24 announcement:Residents and businesses in Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Inyo, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Nevada, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, Yolo, and Yuba counties who have been affected by severe winter storms, flooding, landslides, and mudslides are eligible for tax relief.
Looks like Riverside is now on the list…
According to my parents, the only reason why they have the EE bonds was they use to work for NASA a long time ago, and at the government agency and defense contractors, they all pushed for the EE bonds. My parents didn’t know what to do with them and kept them in a safe deposit box in the bank since they were all paper at the time. I went to move some of the personal items I had in that box since I was a kid and saw like 4 stacks of the EE bonds, some as going back to the late 1970’s… I guess they forgot about them, and I was like “you know some of these stopped accruing interest for a long time now”…And they were like “oh”….And so off they went to trying to figure out how to cash them in…
Chase in DelMar supposedly has 2 machines that they can use to verify the EE bonds. A few notes were so old, one of the machines was having a hard time with them.
I asked if they had any extra deeds to real estate or land in California since the 1970’s that I’m not aware of that I’m not aware of…Unfortunately, that was a negative 🙁
Funny you should ask. My parents had a stack EE bonds that have stopped accruing interest 10 years ago they forgot about. Chase Bank processes them still, at least the ones in 92130 did two weeks ago. You do have to make an appointment, because they have machine readers to verify they are authentic that needs to be used. call the bank and ask.
According to the link I shared, if the address you use for your tax filing is within those affected counties, the IRS automatically qualifies you. Riverside County is not on that list, neither is Imperial.
Those puddles in my backyard was really worrisome. If I wasn’t careful, I might have accidentally submerged my brand new New Balance shoes by 3/8 of an inch walking in my backyard last year.
What does consumption spending have anything to do with CDs?????
People who binge on consumptive spending in America have virtually no money to be investing or saving. Not following your logic here on why CDs would matter for those class of people