The Johnny Doe IBKR portfolio

[JackAlabama]

It seems you invest via an IBKR individual account and hold US situs assets. If you have heirs, are you not concerned about US estate tax? How do you handle it?

id be also pretty concerned about usa overall state and the loss of the reserve currency status.
Looking at this erratic behavior, Id say capital controls are also in the cards.
I hence am making plans to reduce holdings at ibkr to a minimum.

 

[JohnnyDoe]

It seems you invest via an IBKR individual account and hold US situs assets. If you have heirs, are you not concerned about US estate tax? How do you handle it?

I invest via a llc

 

[Mercury]

I invest via a llc

I see. Should then be a multi-member LLC since "U.S. source assets held through a single member limited liability company that is treated as a disregarded entity for U.S. tax purposes (i.e., NOT taxable as a corporation), are also subject to U.S. estate tax." (Charles Schwab).

 

[JackAlabama]

I see. Should then be a multi-member LLC since "U.S. source assets held through a single member limited liability company that is treated as a disregarded entity for U.S. tax purposes (i.e., NOT taxable as a corporation), are also subject to U.S. estate tax." (Charles Schwab).

well the common fix for this is having a hold co owning the llc like bvi or smth.
But that wont help much with the incoming capital controls.

 

[JustAnotherNomad]

id be also pretty concerned about usa overall state and the loss of the reserve currency status.
Looking at this erratic behavior, Id say capital controls are also in the cards.
I hence am making plans to reduce holdings at ibkr to a minimum.

What's the alternative? Any good non-US brokers?

 

[JohnnyDoe]

I see. Should then be a multi-member LLC since "U.S. source assets held through a single member limited liability company that is treated as a disregarded entity for U.S. tax purposes (i.e., NOT taxable as a corporation), are also subject to U.S. estate tax." (Charles Schwab).

This is not the appropriate place to speculate about my setup and discuss about LLC taxes. The thread is about investments.

 

[Matade]

Why do you guys love dividends so much? You are forced to pay tax on them and account for them in reports every time you receive them.
Dividends are not magic money out of the sky. When you don't get a dividend, you get that money accumulated in share appreciation which is more beneficial long term. There is a reason Berkshire doesn't pay a dividend. It's not tax efficient.

 

[JohnnyDoe]

Why do you guys love dividends so much?

It’s a way of investing. One of the benefits is that you don’t have to time the market and you have regular cash flow to be allocated for other purposes (for example buying btc).

You are forced to pay tax on them and account for them in reports every time you receive them.

What’s the problem with that?

Dividends are not magic money out of the sky.

I always pay dividends out of the companies I control, and I like when the companies I own do the same (instead of wasting all their cash on salaries, expenses and t&e).

When you don't get a dividend, you get that money accumulated in share appreciation

In theory yes, which doesn’t make any practical difference.

which is more beneficial long term.

If you time the market correctly, perhaps. But you are not comparing apples to apples.

There is a reason Berkshire doesn't pay a dividend. It's not tax efficient.

This might work for some, not for everyone.

 

[Mercury]

Why do you guys love dividends so much?

Making profits selling your assets constantly keeping your capital growing implies substantially more time, efforts and some would say "luck" than just passively harvesting scheduled dividends/interests.