Kiplinger\'s Personal Finance 03.2020

Editor’s note: Yes, California’s

top income tax rate is 13.3%,

but most people pay at a

much lower rate—in fact,

with nine brackets starting

at 1%, California actually has

one of the most progressive

tax-rate structures in the

nation. Our classifications

are based on the overall esti-

mated state and local tax

burden for a hypothetical

retired couple with $120,

of income (mostly from Social

Security, IRA withdrawals

and a pension). For that hy-

pothetical couple, California

is in the second tier of states

we consider tax-friendly.

(Go to kiplinger.com/links/

retireetaxmap to see how

all 50 states stack up.) Sales

and property taxes are based

on state-wide averages. Al-

though those taxes may be

high in certain parts of the

state, they are countered by

lower rates in other parts of

the state.

Investing with Schwab. It

was interesting to read

that Charles Schwab wished

he could start Schwab all

over again with zero com-

missions (“Ahead,” Jan.).

In the early 1980s, at the

start of my investing jour-

Stocks for the next decade.

You recommend Boeing

as one of the “10 Stocks

for the Next 10 Years”

(Jan.). About the two fatal

crashes of the 737 Max that

took 346 lives, you write,

“The snafu has taken a bite

out of Boeing’s 2019 earn-

ings. But a fix is in the

works and it’s only a matter

of time before the airline

receives approval to begin

f lying again.” The glossing

over of this snafu and

recommendation of this as

a stock for the next 10 years

strictly on the basis of fu-

ture potential profits is dis-

gusting. People died. Boeing

knew it had a problem. I

will not be buying Boeing

stock.

GREG KAMERER

PORTLAND, ORE.

Editor’s note: Our word

choice to describe the chal-

lenges at Boeing was com-

pletely inappropriate. The

only appropriate word is

tragedy. We apologize.

Carbon offsets. I’m awash

with cynicism about carbon

offsets as I observe wealthy

“environmental advocates”

utilizing carbon offsets to

assuage their guilt over

their use of luxuries such

as private jets (“Squishy

Science,” Jan.). Key take-

away: If you’re rich, you

can pollute as much as

you desire and still be con-

sidered environmentally

responsible.

KEN CALHOUN

PORTLAND, ORE.

Kids and spending. I had to

read “Teaching Kids to

Manage Their Money”

(“Ahead,” Jan.) a few times

to make sure I wasn’t miss-

ing something. The info-

graphic adds up to a whop-

ping 166%. I wish I could

invest 166% of my money.

SCOTT MARKHAM

DETROIT

Editor’s note: We should have

clarified that the figures add

up to more than 100% because

respondents were allowed to

select all options their kids

spend money on.

Correction. In the table of

the 10 largest stock mutual

funds (Feb.), we transposed

the names of Vanguard

Total International Stock

Index Admiral Shares and

Vanguard 500 Index Adm.

CONTACT US

Reader Feedback may be edited

for clarity and space, and initials

will be used on request only if

you include your name. Send to

Kiplinger’s Personal Finance,

1100 13th St., N.W., Washington,

DC 20005, or e-mail to feedback@

kiplinger.com. Please include your

name, address and daytime

telephone number.

Ta x e s a n d R e t i r e e s

I was surprised that you did not include California as one of the least-

tax-friendly states (“Moving to Another State? Check Out Taxes

First,” Jan.). The state’s top income tax rate is over 13%. Sales taxes

in Bay Area counties are around 9%. Gasoline taxes are among the

highest in the U.S. Property taxes are around 1.1% of market value,

but your usage of a $400,000 price means that, in coastal California,

your property would be around 500 square feet. By comparison,

property taxes on a 2,200-square-foot home would run about

$23,000 in coastal California.

NAME WITHHELD

BURLINGAME, CALIF.

ney, I had a brokerage ac-

count with Schwab. Inac-

tivity fees continued to eat

away at my account balance

until I decided to liquidate

my account. Clearly the

fees were intended for me

to trade frequently, gener-

ating fees for Schwab’s

agents. Either Mr. Schwab’s

view on commissions has

changed, or he is just saying

that to attract the younger

investor.

JAMES FRANCOLINE

EAST GRANBY, CONN.

READER FEEDBACK

Q READER^ POLL

The bull market keeps defying expectations

and is approaching its 11th birthday. How do

you think stocks will perform this year?

Decline modestly

Rack up another year of

double-digit percentage gains

Remain flat

Enter a bear market (a 20% decline)

67 %

10 %

9 %

9 %

5 %

Increase modestly, with single-digit returns

03/2020 KIPLINGER’S PERSONAL FINANCE 5