PeoplesElbow
Well-Known Member
The article says his strategy is mostly options, that's a pretty weak return IMHO for the risk options pose.
BOY THE STOCK MARKET....
- Thread starter GregV814
- Start date
Well, that would suck. Glad I'm diversified.
Now is a good time to be thinking about IRA conversions.
If IRA converts, will he then be IRENE?
Hessian
Well-Known Member
I KNOW I ought to explore this,...and I am seeing a financial advisor next week...what do I need to know about conversions?? (I am a Complete rookie)
I always try to do it on depressed stocks because you have to pay the taxes on the conversion amount. I usually just move stocks from my regular IRA to my ROTH IRA, say a stock sells for $50 during normal time but during a sell off the stock goes to $30 bucks a share with 100 shares to convert. If you converted during normal times, you would have a tax liability on $5000 or ($50 x 100 =$5000) if you convert at $30 buck a share your tax liability is on $3000 or ($30 x 100 = $3000) a savings of $2000 in tax liability. I never sell stocks then move the cash to the ROTH IRA. I also always pay the tax out of pocket.
I am doing this because when Required Minimum Distributions or RMD kicks in at 73 it will push me into the highest tax bracket. Plus, there will be no taxes due from the ROTH IRA to my heirs. I moved quite a bit during the 2008 meltdown and paid about 50% of the tax that would be owed normally.
Hope this helps.
Hessian
Well-Known Member
GREAT primer...looks like my time with a the Financial Advisor may be a wise investment.
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Hessian
Well-Known Member
For investment novices out there...3 things:
a) Watch the Fed. It looks like Trump is angry that they have not notched down rates. Why? I suspect they are liberal appointees that want to force the country into a recession...or they make $$ off of stocks collapsing (yes there is a way to do that too!)
b) If you have a portfolio...try to resist the temptation to pull out the funds...it means you are likely to miss- time the re-entry and get left behind during a recovery. Taking out funds now is EATING the loss.
c) Plan on a recession lasting months not weeks. We are not likely to recover our losses until maybe in the Fall. Have spare cash? Maybe throw some into Locked in CDs because rates are decent now...unlikely to rise dramatically for months. In fact, they may drop further.
a) Watch the Fed. It looks like Trump is angry that they have not notched down rates. Why? I suspect they are liberal appointees that want to force the country into a recession...or they make $$ off of stocks collapsing (yes there is a way to do that too!)
b) If you have a portfolio...try to resist the temptation to pull out the funds...it means you are likely to miss- time the re-entry and get left behind during a recovery. Taking out funds now is EATING the loss.
c) Plan on a recession lasting months not weeks. We are not likely to recover our losses until maybe in the Fall. Have spare cash? Maybe throw some into Locked in CDs because rates are decent now...unlikely to rise dramatically for months. In fact, they may drop further.
PeoplesElbow
Well-Known Member
If they lower rates we are going to experience some pretty bad inflation I fear.
22AcaciaAve
Well-Known Member
Well Trump can be angry about rates not being cut, but it isn't liberal appointees doing it. The head of the Fed is Jerome Powell who was appointed by......Donald Trump. So if the Fed is a problem, it is Trump's fault. The Fed may also be helping Trump even though he doesn't know it. If they reduce rates, stocks will rise, but inflation may also rise. That will put Trump in comparison with Biden. I don't think that is what he wants. Bottom line is if the economy goes to a recession, Trump owns it. I think the Fed is trying to navigate through the choppy waters. Trump's moves are shocking the economy. In the long run it might work out great. But the short term is very chaotic and the Fed is just trying to calm things down.
Except for that pesky fact that the Fed Chair is appointed for a term of 4 years, so wouldn't it be a Biden problem since he was re-appointed in May 2022? Or do facts not matter to you?
PeoplesElbow
Well-Known Member
That's a pretty good deflection, he was Trump's choice.
Not a deflection, it is a fact. Unless you think Biden was forced to re-appoint him.
PeoplesElbow
Well-Known Member
Not at all, but it sure seems like a stretch to take any blame away from Trump for a bad appointment.
I'll give him the benefit of the doubt on that appointment, he relied too heavily on those that were giving him advice. His first term was constrained by those that the machine helped install. This term seems more of an all Trump action void of that same machine.
Thank God!
