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2020 Investment Thread

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afm199 said:
Don't you get some tax benefit from non deductible IRAs, in the sense that a portion or all of the withdrawl is not taxable?
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Taxes are deferred on dividends and cap gains, but you will still have to pay them upon distribution. You will not pay taxes on the base amount you contribute.
 
WSJ says that margin loans are at a record. Fuck that scares me even more.
 
afm199 said:
WSJ says that margin loans are at a record. Fuck that scares me even more.
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Prolly kids gambling on RobinHood. :( I recall back '89 I was living in Manhattan and talking with a colleague about the '87 crash. He said prior to the crash he had a cab driver sharing stock tips with him. As soon as he got to his office he sold everything.
 
scootergmc said:
And the non-deductible is your only IRA?
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I have 401k also that I rolled over in to "Roll Over IRA" last time I switched jobs. After that all my contributions have been after tax ones.

So I think I didn't use correct terms when searching previously. Searching for "non-deductible ira" conversion to roth I found a better explanation. Basically it's based on how much you have in both deductible and none deductible.
 
UDRider said:
So I think I didn't use correct terms when searching previously. Searching for "non-deductible ira" conversion to roth I found a better explanation. Basically it's based on how much you have in both deductible and none deductible.
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Pro-rata... Sounds like you found what you were looking for. Does your current employer's 401(k) allow for rollover IRAs? Not sure the consequences and implications with your financial status, but it may be time to consult a fiduciary with tax experience.
 
scootergmc said:
Pro-rata... Sounds like you found what you were looking for. Does your current employer's 401(k) allow for rollover IRAs? Not sure the consequences and implications with your financial status, but it may be time to consult a fiduciary with tax experience.
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For sure, will be consulting tax professional.
While I am working there? Not sure. If I switch jobs, I don't see why not.
 
UDRider said:
For sure, will be consulting tax professional.
While I am working there? Not sure. If I switch jobs, I don't see why not.
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Yes, some allow for (I think it's on the rarer side) previous IRAs to be rolled into a current 401(k). If so, it makes fully funding a non-deductible ira and doing an immediate roth conversion a breeze without the tax implications. I'm not sure the tax implications on the conversion into the 401(k) though. Just spitballin' now.
 
scootergmc said:
Yes, some allow for (I think it's on the rarer side) previous IRAs to be rolled into a current 401(k). If so, it makes fully funding a non-deductible ira and doing an immediate roth conversion a breeze without the tax implications. I'm not sure the tax implications on the conversion into the 401(k) though. Just spitballin' now.
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One of the things I learned about IRA's was to ignore advice to merge them if they came from different funding sources.

I have four. Used to have five. The SEP, conventional, inherited, and ROTH are all separate. Schwab wanted me to merge a couple. No thanks.
 
ThinkFast said:
Prolly kids gambling on RobinHood. :( I recall back '89 I was living in Manhattan and talking with a colleague about the '87 crash. He said prior to the crash he had a cab driver sharing stock tips with him. As soon as he got to his office he sold everything.
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Sounds like a familiar scenario. ~2006 I can recall overhearing the checker and bagger at the supermarket comparing notes on the Real Estate flips they were in the midst of and it wasn't an isolated incident. Certainly not solely because of that, but I got out of rental RE shortly thereafter.

I don't know if this is a similar deal with this market, but it certainly defies logic.
 
afm199 said:
One of the things I learned about IRA's was to ignore advice to merge them if they came from different funding sources.

I have four. Used to have five. The SEP, conventional, inherited, and ROTH are all separate. Schwab wanted me to merge a couple. No thanks.
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Yeah but you're like 125 years old and have a vault like Scrooge McDuck.
 
scootergmc said:
Yes, some allow for (I think it's on the rarer side) previous IRAs to be rolled into a current 401(k). If so, it makes fully funding a non-deductible ira and doing an immediate roth conversion a breeze without the tax implications. I'm not sure the tax implications on the conversion into the 401(k) though. Just spitballin' now.
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When I switched jobs I usually rolled from previous employer to new one. This time around I decided to roll it over in to roll over ira.

My current employer allows to contribute to 401k roth with after tax, also back door mega roth where it converts as soon as it's deposited. To reduce tax burden.

One can also contribute separately to none-deductible IRA, up to 6k, and do roth conversion.

https://smartasset.com/retirement/w...IRA is,deductible contributions grow tax free.

I don't know how I didn't find this article previously.

afm199 said:
One of the things I learned about IRA's was to ignore advice to merge them if they came from different funding sources.

I have four. Used to have five. The SEP, conventional, inherited, and ROTH are all separate. Schwab wanted me to merge a couple. No thanks.
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Really, how come?
 
UDRider said:
Really, how come?
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Because if you're dealing with mingled funds, ( qualified and non qualified, from different sources ( SEP VS Regular IRA)) etc., it's so much easier to keep track. It costs me nothing to keep several open.

Should the IRS decide ( or should you get a reclassification) you don't have to dig into a basket of sources to try and winkle out what is what in an account.
 
afm199 said:
Because if you're dealing with mingled funds, ( qualified and non qualified, from different sources ( SEP VS Regular IRA)) etc., it's so much easier to keep track. It costs me nothing to keep several open.

Should the IRS decide ( or should you get a reclassification) you don't have to dig into a basket of sources to try and winkle out what is what in an account.
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Ah, in that context. Yeah, makes sense.
 
Noticing that tech stocks (except for communications) are woefully absent from my portfolio, I'm tentatively planning to by some VGT.

Also, my thinking is that people with these stocks probably did very well with them this year and, if selling, will probably do it after EOY because of taxes. So seems better to buy next week. Makes sense? Just a sanity check....
 
rodr said:
Noticing that tech stocks (except for communications) are woefully absent from my portfolio, I'm tentatively planning to by some VGT.

Also, my thinking is that people with these stocks probably did very well with them this year and, if selling, will probably do it after EOY because of taxes. So seems better to buy next week. Makes sense? Just a sanity check....
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Mixed feelings there. I bought tech all year and closed a couple weeks ago. In my mind ( as with most areas) it's just overpriced right now.

That given VGT is a great ETF. And market timing is always a coin toss on my part.

20% of the portfolio is Apple, and 15% is Microsoft.
 
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Buying on margin would mean I was all in and I’ve never been all in.
That’s a whole nother level of confidence I’ve never had. Go big or go home I suppose.
 
Blankpage said:
Buying on margin would mean I was all in and I’ve never been all in.
That’s a whole nother level of confidence I’ve never had. Go big or go home I suppose.
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bingo. I've bought on margin, but it's never been more than 5-10% of my total marginable securities and only for a short term.
 
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