Kevin Slater

I was browsing Memorial Day sales and the price of a comparable laptop that I bought last June has doubled in price due to AI driving up the price of memory chips and tariffs.

US stock have significantly underperformed international stocks ytd.
Kevin Slater

US stock have significantly underperformed international stocks ytd.
Kevin Slater

US stock have significantly underperformed international stocks ytd.
Kevin Slater

Yeah, the market has been surprisingly resilient in the face of so much craziness.

Example of a previous IPO and how long it took to back to its original value:

I hate that they're considering altering the rules for S&P inclusion to get SpaceX in earlier than it otherwise would be.
Kevin Slater

I hate that they're considering altering the rules for S&P inclusion to get SpaceX in earlier than it otherwise would be.
Kevin Slater

I hate that they're considering altering the rules for S&P inclusion to get SpaceX in earlier than it otherwise would be.
Kevin Slater

In general, it's not a great idea to take part in IPOs.  Wait at least until the lock-up period is over (when all the insiders are allowed to sell their shares, which often tanks the stock).  
Kevin Slater

My accountant sent this info to consider. 
The first major advantage is that you completely avoid paying capital gains tax because you are donating the stock itself rather than selling it, so the gain is never realized. A second benefit is that you still receive a charitable deduction based on the full fair market value of the stock, not what you originally paid, which creates a powerful double effect of avoiding tax while also reducing taxable income. A third advantage is that if you use a donor-advised fund, you can take the tax deduction in the current year while deciding which charities to support over time, giving you flexibility in how and when you give.
 
On the downside, the most important drawback is that once you donate the stock, the money is permanently gone and no longer part of your financial assets, which removes any future flexibility. Another issue is that you may be giving up a potentially better tax outcome for your heirs, since holding the stock until death would allow them to receive a step-up in basis and avoid capital gains tax anyway. The final drawback is that this strategy does not improve your cash flow at all, since it reduces taxes but does not generate any actual liquidity, which can be a problem if you still need access to cash for expenses or obligations.

New entry for that table:
Attack on Iran. Trading days to trough: 21. % change to trough: -7.8%. Trading days back to even: 15.
(I hope the short sellers took their profits on March 30.)

More precisely, whatever your donation, the first .5% of your AGI is non-deductible.
Kevin Slater

More precisely, whatever your donation, the first .5% of your AGI is non-deductible.
Kevin Slater

More precisely, whatever your donation, the first .5% of your AGI is non-deductible.
Kevin Slater

More precisely, whatever your donation, the first .5% of your AGI is non-deductible.
Kevin Slater

There's a threshold potentially, you might need to cross 0.5% of your income before deductions kick in, I think new for 2026, depending on how you file.  Just in case good to check since, if applicable, donations below the floor don't have the same tax benefit.

Also, you only get to deduct the full appreciated value of the stock if you've held it a year or more, and you itemize rather than taking the standard deduction.
Kevin Slater

If you are currently at an age where you’re taking RMDs from your IRA you might want to consider a Qualified Charitable Distribution.  There is an upper limit to the amount you can give as a QCD ($108,000, I think) and the stock must be transferred directly from your IRA to the charity.  Using a QCD allows you to meet your RMD and is not taxable as income to you.  Make sure the organization is a registered charity and that it can accept stock as a contribution.  Many small non-profits and charities don’t have a brokerage account to accept stock transactions.   

Also, you only get to deduct the full appreciated value of the stock if you've held it a year or more, and you itemize rather than taking the standard deduction.
Kevin Slater

Also, you only get to deduct the full appreciated value of the stock if you've held it a year or more, and you itemize rather than taking the standard deduction.
Kevin Slater

If you donate long-term appreciated shares directly to a qualified charity, the built-in gain is never realized, so you don’t pay capital gains tax on it. If you sell first and then donate, you’d still owe the tax.
The only real downsides are the AGI limits (usually around 30% for appreciated stock), the holding period rules, and a bit more paperwork. Definitely worth talking to a CPA or financial advisor based on your specific situation.

No regrets here! 
In 2020, I made an "Emergency Withdrawal" (allowed in 2020 for anyone who had proof of a COVID diagnosis that year) and drained my traditional IRA in order to cash flow my maximum contributions to my Roth IRA and Roth 401k for a few years.  Because of the "Emergency Withdrawal" legislation, I avoided the 10% penalty and was able to spread the withdrawal income out over 3 years on reported income taxes.  I'm so happy I did that!  It's better for me to have the taxes out of the way and for all that money to grow tax-free for the next few decades.

I have done both Roth conversions and Roth 401k contributions for many years. Given how many years I have left before retirement it makes sense for me. Never regretted it - but you may want to talk it over with your tax preparer/CPA ahead of time. Especially if you have more than one IRA account it gets very complicated how your conversion will be allocates across the various IRA accounts. 

Maybe it’s because it was too hard to get the dead ones to sign…..