All things STOCKS

#10,952
#10,952
A good strategy (in my opinion) for those individual investors with regular IRA accounts - if you think that the current pullback is near the bottom then converting those regular IRA accounts to Roth IRA accounts could result in massive, lifetime savings in taxes paid to the IRS. Your 2022 tax obligation will be higher, but you’ll NEVER have to pay taxes on investments inside of the Roth account again. The younger the account holder is, the bigger the upside should be. It’s best to do this if you can pay the additional 2022 tax with cash that’s NOT in a retirement account.

You can also convert a portion of the regular IRA account to a Roth if you don’t want to be taxed on an entire account conversion.

I don’t think that there are income limits, but it wouldn’t be a bad idea to ask a tax professional before making a conversion if that is a concern.

It is aslo a good idea to avoid riskier investments inside of any retirement account. Losses can’t be harvested. High dividend paying and blue chip companies are very appropriate.
 
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#10,953
#10,953
On Wednesday, I switched the fund mix of a 401(k) account from 100% conservative to 50% conservative, 25% moderate, and 25% aggressive. If markets drop to new lows in the coming weeks I’ll migrate more of the conservative fund style to the moderate and aggressive styles.

I did something similar with a health savings account, but I had to select the specific funds. From short term bonds fund to US equities and growth funds.
 
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#10,954
#10,954
Interesting. I am poised to do that, and I will do it, but I have found that I am always early. So I am trying to think realistically about the timing of the rate increases and whether it would make more sense to just leave it for a year and even at that time consider two years. If they raise rates 1/2% every quarter, they're going to need a couple years (I guess). But I certainly don't think now is bad.

I seem always, when in conservative mode, to pick the wrong sort of bonds. That is one way to get an education, of course, but a hard way. My 401k risk-off portion is about 75% TIPS fund and 25% a fund that tries to track the price of bullion (not a good fund but I can only access one). I'm not a gold fan, but under the circumstances (everything needs to go down at the same time) gold ironically can't be hurt by discounting its future cash flows because it doesn't have any.

There has been an encyclopedia of discussion about risk-off assets at bogleheads for years and I would not be opposed to replacing some of this with consumer defensive or AEP or something like that. I was swing trading AEP and it got away from me. I wish I had some now. I'm not a commodities fan because of the difficulty of actually investing and also I reject the idea that commodities are a catagory. That is, if somebody says "hey basically bacon, gasoline, orange juice and platinum all move together" then I'd say that's a moron. Then if they said "and they're all cheap right now" I'd say maybe they should wear a helmet so they don't get any further injury.
 
#10,958
#10,958
Velo Vol said:
I'm missing a big rally due to Mr. Orange. :(
Click to expand...

FSovl-dVEAE8qSN
 
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#10,959
#10,959
Thunder Good-Oil said:
A good strategy (in my opinion) for those individual investors with regular IRA accounts - if you think that the current pullback is near the bottom then converting those regular IRA accounts to Roth IRA accounts could result in massive, lifetime savings in taxes paid to the IRS. Your 2022 tax obligation will be higher, but you’ll NEVER have to pay taxes on investments inside of the Roth account again. The younger the account holder is, the bigger the upside should be. It’s best to do this if you can pay the additional 2022 tax with cash that’s NOT in a retirement account.

You can also convert a portion of the regular IRA account to a Roth if you don’t want to be taxed on an entire account conversion.

I don’t think that there are income limits, but it wouldn’t be a bad idea to ask a tax professional before making a conversion if that is a concern.

It is aslo a good idea to avoid riskier investments inside of any retirement account. Losses can’t be harvested. High dividend paying and blue chip companies are very appropriate.
Click to expand...
I’ve read that a person can reverse a Roth conversation up to 4/15 of the following year which takes away some of the risks in a falling market. Say your converting 25% of your traditional ira to a Roth on 6/1 then the market continues down. On 12/30 you can convert another 25% then convert the first 25% back into the traditional ira and pay the tax on the lower value on the 12/30 25%. Also, you have to convert a 401K into a traditional ira then to a Roth, can’t go straight from 401K into Roth. This is only something I’ve read so if anyone knows different please correct me.
 
#10,960
#10,960
walkenvol said:
I’ve read that a person can reverse a Roth conversation up to 4/15 of the following year which takes away some of the risks in a falling market. Say your converting 25% of your traditional ira to a Roth on 6/1 then the market continues down. On 12/30 you can convert another 25% then convert the first 25% back into the traditional ira and pay the tax on the lower value on the 12/30 25%. Also, you have to convert a 401K into a traditional ira then to a Roth, can’t go straight from 401K into Roth. This is only something I’ve read so if anyone knows different please correct me.
Click to expand...

You have until tax day of the current year to contribute 6k to your roth for the last calendar year. I usually contribute around Jan-Mar each year for the last years' allocation.
 
#10,961
#10,961
mrorange211 said:
You have until tax day of the current year to contribute 6k to your roth for the last calendar year. I usually contribute around Jan-Mar each year for the last years' allocation.
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I’m over 50 so it’s $7K for me if we have enough earned income. I was talking about existing money in a pretax ira / 401K converting to a Roth. I don’t think there’s any limits on that
 
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#10,962
#10,962
Firebirdparts said:
Interesting. I am poised to do that, and I will do it, but I have found that I am always early. So I am trying to think realistically about the timing of the rate increases and whether it would make more sense to just leave it for a year and even at that time consider two years. If they raise rates 1/2% every quarter, they're going to need a couple years (I guess). But I certainly don't think now is bad.

I seem always, when in conservative mode, to pick the wrong sort of bonds. That is one way to get an education, of course, but a hard way. My 401k risk-off portion is about 75% TIPS fund and 25% a fund that tries to track the price of bullion (not a good fund but I can only access one). I'm not a gold fan, but under the circumstances (everything needs to go down at the same time) gold ironically can't be hurt by discounting its future cash flows because it doesn't have any.

There has been an encyclopedia of discussion about risk-off assets at bogleheads for years and I would not be opposed to replacing some of this with consumer defensive or AEP or something like that. I was swing trading AEP and it got away from me. I wish I had some now. I'm not a commodities fan because of the difficulty of actually investing and also I reject the idea that commodities are a catagory. That is, if somebody says "hey basically bacon, gasoline, orange juice and platinum all move together" then I'd say that's a moron. Then if they said "and they're all cheap right now" I'd say maybe they should wear a helmet so they don't get any further injury.
Click to expand...

Just a wild guess, but think they will move slighter faster. Perhaps four more 1/2% this year, and one in Feb of 2023. That really should do the trick.
 
#10,963
#10,963
Diamond Hands-Wallstreetbets was on MSNBC over the weekend. It airs again Friday and Sunday night.

It’s fascinating. All about the GameStop short squeeze in 2020/2021.

r/wallstreetbets - Wikipedia

——————————————————————-
This guy is mad:

Andrew Left - Wikipedia
——————————————————————-
 
#10,964
#10,964
Firebirdparts said:
Interesting. I am poised to do that, and I will do it, but I have found that I am always early. So I am trying to think realistically about the timing of the rate increases and whether it would make more sense to just leave it for a year and even at that time consider two years. If they raise rates 1/2% every quarter, they're going to need a couple years (I guess). But I certainly don't think now is bad.

I seem always, when in conservative mode, to pick the wrong sort of bonds. That is one way to get an education, of course, but a hard way. My 401k risk-off portion is about 75% TIPS fund and 25% a fund that tries to track the price of bullion (not a good fund but I can only access one). I'm not a gold fan, but under the circumstances (everything needs to go down at the same time) gold ironically can't be hurt by discounting its future cash flows because it doesn't have any.

There has been an encyclopedia of discussion about risk-off assets at bogleheads for years and I would not be opposed to replacing some of this with consumer defensive or AEP or something like that. I was swing trading AEP and it got away from me. I wish I had some now. I'm not a commodities fan because of the difficulty of actually investing and also I reject the idea that commodities are a catagory. That is, if somebody says "hey basically bacon, gasoline, orange juice and platinum all move together" then I'd say that's a moron. Then if they said "and they're all cheap right now" I'd say maybe they should wear a helmet so they don't get any further injury.
Click to expand...

Prime will be 5% by July 31st. Will be 6.25% by 3.31.23.
 
#10,966
#10,966
Pre-market looks great. But Home Depot and Walmart have earnings announcements before the open. DJIA might could go a thousand points in either direction today.
 
#10,969
#10,969
At least HD created an advance and after WMT failed to match HD’s optimistic results the averages didn’t move back down. Could go from +500 to -500 today. Lots more retail/consumer names will be announcing this week. Will probably be a choppy rest of the quarter and not end up too far from the starting point.
 
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