Stoplight's Account Talk

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Stoplight said:
Hello, All !

Just a story (and opinion !) : My self-directed IRA is with USAA...last year, I guess they contracted out their "provider" of brokerage services. It's been a bit of a PITA (2 statements and tax documents, some funky looking screen displays, etc etc while they made the conversion).

Today, I had a bit of panic...trying to sell a position near COB, on a stock I had set a stop on...perhaps "operator error", but I was trying to change my "stop" order to a "market" order, and it wouldn't let me, UNTIL I cancelled the stop order, and resubmitted !!! (even though I was picking the menu item to "change" my stop order !) Anyway, it went through...

OTOH...I think trades execute much faster than they used to...I submitted the trade, like, 2 minutes before close...the "old" system would've given me a warning that they would try, but I was too close to close, and it may not go through. Today, it just executed (at a price higher than the closing price, BTW).

Bottom line : Overall, I like the "new and improved" trading provided by USAA...I still recommend them ! ...and I STILL recommend rolling your TSP into a self-directed IRA at retirement, IAW your personal situation :)


Stoplight...
Click to expand...

You haven't gotten any tax documents yet have you? I can pull up a list of my trades from last year through Aug, but after that, I don't see anything with all my trades. :(
 
Stoplight back the truck up..... Are you saying that it has already been determined what the cola is for retired fers pensions? Is it that way for CSRS retirees also?
 
I have been retired for about a year and a half and I need to investigate IRAs. I take it that you can get an IRA that allows trades in individual stocks, ETFs, Mutual funds and Index funds and I guess from reading below that you can direct where the tax is taken from but how do you handle all the trading fees? Don't trading fees and tax issues on short term trades also cut into your profits? Does anyone have suggestions on funds? Thanks!
 
GUCHI said:
Stoplight back the truck up..... Are you saying that it has already been determined what the cola is for retired fers pensions? Is it that way for CSRS retirees also?
Click to expand...
Hi Guchi,

I just took course on retirement two weeks ago. My notes say, you do not get a COLA under FERS until you reach 62. Then you get a part of the Consumer Price Index (CPI). If CPI is:
--Up to 2%, you get the full amount.
--Between 2-3%, you get 2%.
--Above 3%, you get CPI minus 1%.

This doesn't fully answer question you had for Stoplight. No notes on CSRS---it's likely better though.

Best wishes, DBAnnie
 
DreamboatAnnie said:
Hi Guchi,

I just took course on retirement two weeks ago. My notes say, you do not get a COLA under FERS until you reach 62. Then you get a part of the Consumer Price Index (CPI). If CPI is:
--Up to 2%, you get the full amount.
--Between 2-3%, you get 2%.
--Above 3%, you get CPI minus 1%.

This doesn't fully answer question you had for Stoplight. No notes on CSRS---it's likely better though.

Best wishes, DBAnnie
Click to expand...
DBAnnie thanks for the info. I'm CSRS retired so I was check n to see what gives for us ol extinct folks
 
Birchtree said:
The nice thing about an IRA is that you can trade with impunity and no tax considerations.
Click to expand...

Geez ! I didn't expect my post in my little corner of the TSPTalk World to generate this many questions/comments !!! :nuts:

BT,

Agree ! However, I'm getting a little confused about some of the tax info I'm getting. For instance :

I'm holding a MLP in my IRA (TNH)....NOW I find that it's NOT a good idea ! My bad...I didn't do my "due diligence" on it...just chasing high dividends !!! Their tax forms list gains and losses, but I think it's all a wash, IF I don't go above +$1,000 per year.

Also holding some stuff that is sending me a breakdown between "dividends" and "return of capital". From what I know, it's all a moot point, since it's all in my IRA !!! I'll get taxed at the IRA withdrawal rate when I tap into this account...It's not taxed until I withdraw from my IRA, right ? And then, it's taxed at my income rate...no fooling around with cap gains rates...let me know if I have it wrong !!!

Thanks for stopping by !


Stoplight...
 
Intrepid_Timer said:
You haven't gotten any tax documents yet have you? I can pull up a list of my trades from last year through Aug, but after that, I don't see anything with all my trades. :(
Click to expand...

I-T,

I got the 5498 IRA Contribution forms, and the 2 annual statement forms...but I'm sorry...haven't even STARTED doing this year's taxes via TaxAct ! I'm gonna owe a few bucks, so I'm not in a hurry !!! Just got the Wife's pension info yesterday...


Stoplight...
 
GUCHI said:
Stoplight back the truck up..... Are you saying that it has already been determined what the cola is for retired fers pensions? Is it that way for CSRS retirees also?
Click to expand...

Guchi,

Ummmm...no ??? :smile:

Kidding aside...the Gubmint has said what the COLA is for Social Security for 2015...the Wife gets that...

Since I'm a FERS retiree, pulling my annuity and the supplemental annuity, I already know I get no COLA until age 62...DBAnnie got it right !!!

I think the CSRS Guys get the COLA...check with Nasa on that question !!!


Stoplight...
 
Last edited:
pmaloney said:
I have been retired for about a year and a half and I need to investigate IRAs. I take it that you can get an IRA that allows trades in individual stocks, ETFs, Mutual funds and Index funds and I guess from reading below that you can direct where the tax is taken from but how do you handle all the trading fees? Don't trading fees and tax issues on short term trades also cut into your profits? Does anyone have suggestions on funds? Thanks!
Click to expand...

PM,

Yes...you can get a self-directed IRA Brokerage account from many different "vendors"...most allow trading in all the categories you describe !!! Trust me...I've made money, and lost money...trading on the hunches I have, and the info I get as a Premium subscriber !!!

I haven't yet pulled any $$$ from the Wife or I's accounts with USAA, but I don't anticipate any problems, because we'll have a cash balance that our withdrawal will come from...it'll be interesting to see if we can specify WHERE the withdrawals come from (unlike the TSP !), when that time comes !!! Might be later this year...my monthly TSP withdrawal will pull my TSP balance down to zero in June or July...

Picking a IRA brokerage is a matter of choice...We went with USAA because we've done business with them for years, and we trust them...they have pretty low transaction fees (~$6 per trade if you have a high-enough balance), and many options...they meet our "needs" ! OTOH, others on the Forum have recommended other firms, based on fees, after-hour trading, etc etc...do your research in line with how you expect to trade !!!

The beauty of a self-directed account ? You can put your money where you want, when you want ! None of this TSP IFT limit crap...to me, that means a LOT !!! Yes, others say you gotta look at the fees associated with your "buy-and-hold" stocks or mutual funds, and your trading fees...but IMHO, those fees are chump change, compared to the dividends and/or realized gains you make via buying and selling...the cost of "doing business" !!!

The "downside" ? As I understand it, all the ups and downs in your IRA portfolio mostly don't matter...you don't get wrapped up in "capital gains", etc when you file your income tax ! Forget all the crap about Schedule D !!! OTOH, you get taxed at a higher rate when you withdraw that money...taxed just like "income" ! A classic trade-off !!! I suspect BT and others will take issue with me on this point...yeah, I probably could be smarter on my approach to taxes, but for now, it works for me !!!

HTH ! Ask away, if you have other questions !!! Great discussion !


Stoplight...
 
DreamboatAnnie said:
Hi Guchi,

I just took course on retirement two weeks ago. My notes say, you do not get a COLA under FERS until you reach 62. Then you get a part of the Consumer Price Index (CPI). If CPI is:
--Up to 2%, you get the full amount.
--Between 2-3%, you get 2%.
--Above 3%, you get CPI minus 1%.

This doesn't fully answer question you had for Stoplight. No notes on CSRS---it's likely better though.

Best wishes, DBAnnie
Click to expand...


Love Ya, Girl !!! :laugh:


Stoplight...
 
Stoplight, I retired under FERS in 2012 at age 57 as FED LEO.. I just received a COLA of 1.7% (EST.,) for 2015 for my pension.
I don't know about not getting COLA until age 62.. Could it be because I was LEO ?? Just adding to the discussion.
 
Stoplight said:
Guchi,

Ummmm...no ???

Kidding aside...the Gubmint has said what the COLA is for Social Security for 2015...the Wife gets that...

Since I'm a FERS retiree, pulling my annuity and the supplemental annuity, I already know I get no COLA until age 62...DBAnnie got it right !!!

I think the CSRS Guys get the COLA...check with Nasa on that question !!!


Stoplight...
Click to expand...

Thanks Stoplight.

Yes as CSRS you do get your COLA right away but your first COLA is adjusted according to the month you retired. Since I retired in May 2012 my 2013 COLA was adjusted down because I had not been retired for a full year. 2014 & 2015 I have gotten what the government approved.
 
MyFederalRetirement.com is a great source for retirement information that I always pointed younger employees to.
Article on Colas
2014 Federal Retiree COLA 1.5 % (CSRS and FERS)
The part specific to who gets an annual Cola.
"All CSRS retirees and survivors receive COLAs. However, under FERS, COLAs are applied only to annuities of retirees who are age 62 or older, individuals who retired under specified special retirement provisions (such as law enforcement officers and fire fighters), individuals who retired by reason of disability, and to survivor annuitants. Other FERS retirees receive no COLAs while they are under age 62".
 
NASA I retired in May also 2014 and this 1st year has flown by, but I'm loving it, you? I did get my partial cola, every little bit helps. Thanks for weighing in.
 
GUCHI said:
NASA I retired in May also 2014 and this 1st year has flown by, but I'm loving it, you? I did get my partial cola, every little bit helps. Thanks for weighing in.
Click to expand...

2013 was a partial COLA. So I would imagine that your 2015 COLA was not the full 1.7% more like 0.7%.
 
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