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Voltage posted:I have a general understanding but I'm doing this to learn more - I'm not going to dump a crazy ton of money in to this to start, just $1-2,000. Doesn't sound like you know what you want or what you're doing yet! Do some more reading maybe  If you want to learn about buying stocks, buy stocks and have fun chatz with the
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Dec 30, 2014 23:40
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Voltage posted:So I just signed up for a capone sharebuilder account - is this really as simple as just buying and selling whatever stocks I want? Dominoes fucked around with this message at 00:29 on Dec 31, 2014 |
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Dec 31, 2014 00:21
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Heh, was totally expecting a down day today but I look away for a couple hours and VUZI goes nuts.
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Dec 31, 2014 00:25
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Dominoes posted:Yes. You're off to a good start by realizing that. Check out Flash Boys. It'll give you a good initial perspective on how the markets operate. You could just say "the house always wins" and save him the $16.
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Dec 31, 2014 02:18
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Dividends are so nice this time of year. Why yes I would like $600 today.
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Dec 31, 2014 03:32
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melon cat fucked around with this message at 05:41 on Mar 16, 2019 |
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Dec 31, 2014 05:42
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Voltage posted:I have a general understanding but I'm doing this to learn more - I'm not going to dump a crazy ton of money in to this to start, just $1-2,000. First, hit the longterm investing thread, then max out your 401k at least up until your employer match. Then pay off all your consumer debt with an interest rate higher than 4%. Then open up a vanguard Roth ira and max out your contributions for 2014 and 2015, that's like $11k. Once you've done that then max out your 401k competely for 2014, that's like $17.5k. Then if you still want to trade stocks you should have at least another $10k-$20k of after tax cash lying around that you're completely 100% willing to lose. If this isn't your situation then you should exit the thread and not look back until you are in this situation. $2K isn't poo poo in this game unless you're a balls to the wall options wizard.
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Dec 31, 2014 06:16
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That was very insightful. I was considering dropping a couple $K in this but I'm still a student. No debt and ~$5k lying around from working. Is the above still what you would recommend for a person in my situation or something different?
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Dec 31, 2014 07:17
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fruition posted:First, hit the longterm investing thread, then max out your 401k at least up until your employer match. Then pay off all your consumer debt with an interest rate higher than 4%. Then open up a vanguard Roth ira and max out your contributions for 2014 and 2015, that's like $11k. Once you've done that then max out your 401k competely for 2014, that's like $17.5k. Then if you still want to trade stocks you should have at least another $10k-$20k of after tax cash lying around that you're completely 100% willing to lose. If this isn't your situation then you should exit the thread and not look back until you are in this situation. loving sticky this post
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Dec 31, 2014 10:24
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Faded Sloth posted:That was very insightful. I was considering dropping a couple $K in this but I'm still a student. No debt and ~$5k lying around from working. Is the above still what you would recommend for a person in my situation or something different?
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Dec 31, 2014 10:38
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Faded Sloth posted:That was very insightful. I was considering dropping a couple $K in this but I'm still a student. No debt and ~$5k lying around from working. Is the above still what you would recommend for a person in my situation or something different? It's the smart, responsible plan but if you want to have fun certainly feel free to throw your disposable income into a brokerage account. Just remember that commission fees are fixed (not a %) so your smaller trades of several hundred dollars will cause your few thousand to be eaten up by commission fees faster than someone trading larger volume. And treat that money like gambling, fun money...not an actual investment which you will need for an important expense later.
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Dec 31, 2014 16:40
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If you want to get your feet wet trading in the stock market, why not save that real money in some low-cost index funds and then play around with paper trading? It's the sensible option for those of us who are not millionaires.
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Dec 31, 2014 16:56
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Faded Sloth posted:That was very insightful. I was considering dropping a couple $K in this but I'm still a student. No debt and ~$5k lying around from working. Is the above still what you would recommend for a person in my situation or something different? Depends on what your goals and risk tolerance are. You are (presumably) young? And it sounds to me like you have a high risk tolerance and wouldn't mind losing some of your money if you have to chance to make some. If you don't need it for something important in the next couple years then I'd say go for it. With $5k to gamble I'd stick to only "investing" in one or two stocks, or hitting up an ETF or index fund through Vanguard that matches the S&P500. The stocks will be much more fun though.
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Dec 31, 2014 17:35
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melon cat posted:Interesting that you mentioned that, because I wanted to ask- what are some good dividend-paying stocks to add to a portfolio? I was considering McDonald's, P&G, and GE just to increase my dividend payouts. I'm personally holding American Electric Power. Liked it so far through 3 dividends. I think its a decent company, not amazing but decent. And boring. Just the way I like my stocks.
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Dec 31, 2014 17:59
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Just FYI, long term capital gains are 0% for this year, but from what I can tell, they are still 0% next year, if you're in the bottom 2 tax brackets, which includes up to taxable income of $74,900 if married filing joint or $37,450 if filing single.
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Dec 31, 2014 18:09
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Josh Lyman posted:Just FYI, long term capital gains are 0% for this year, but from what I can tell, they are still 0% next year, if you're in the bottom 2 tax brackets, which includes up to taxable income of $74,900 if married filing joint or $37,450 if filing single. But my short term gains 
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Dec 31, 2014 18:14
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Josh Lyman posted:Just FYI, long term capital gains are 0% for this year, but from what I can tell, they are still 0% next year, if you're in the bottom 2 tax brackets, which includes up to taxable income of $74,900 if married filing joint or $37,450 if filing single. Would be nice to be so rich you could work out an arrangement to delay income for one year.
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Dec 31, 2014 18:30
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Oh yeah, major caveat: any short term losses and/or carryover from previous years will eat into your long term gains before you can claim them, so trying to take advantage of the 0% tax rate may not work if your short term losses outnumber your long term gains.
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Dec 31, 2014 19:13
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Josh Lyman posted:Oh yeah, major caveat: any short term losses and/or carryover from previous years will eat into your long term gains before you can claim them, so trying to take advantage of the 0% tax rate may not work if your short term losses outnumber your long term gains. Wowwwww I did not know that and I'm really glad I didn't do a thing I was thinking of doing now.
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Dec 31, 2014 19:16
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DNova posted:Wowwwww I did not know that and I'm really glad I didn't do a thing I was thinking of doing now.
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Dec 31, 2014 19:25
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Josh Lyman posted:Yeah, there's a small chance I could be wrong, but from what I've read and looking over my 2013 return, your short term gains/losses are combined with your long term gains/losses first on line 16 of your Schedule D. THEN it asks if you have a combined gain or loss. ONLY if you have a combined gain does it then compute your tax exposure for long term gains based on your tax bracket. Yup. If you're tax harvesting losses, you shouldn't be cashing in any long term gains. I foolishly did this a few years ago because I am stupid and dumb and thought long term and short term were calculated separately.
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Dec 31, 2014 20:05
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District Selectman posted:Yup. If you're tax harvesting losses, you shouldn't be cashing in any long term gains. I foolishly did this a few years ago because I am stupid and dumb and thought long term and short term were calculated separately. Well I would have done the same thing (I am also stupid and dumb). I don't do my own taxes so I'm at a bit of a disadvantage when it comes to knowing those details.
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Dec 31, 2014 20:09
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DNova posted:Well I would have done the same thing (I am also stupid and dumb). I don't do my own taxes so I'm at a bit of a disadvantage when it comes to knowing those details.
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Dec 31, 2014 20:35
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It was the first time I'd ever had long term gains! Faded Sloth posted:That was very insightful. I was considering dropping a couple $K in this but I'm still a student. No debt and ~$5k lying around from working. Is the above still what you would recommend for a person in my situation or something different? If you have a good degree that will probably get you a good job, go ahead and throw it in a Roth, and invest it in the Vanguard total world stock ETF. I wouldn't do just S&P, personally. Also, with that amount of money, who really cares about return? If it returns 10%, 20% or -40%, it's a drop in the bucket really. At this point in your life it's more about just getting dollars saved vs any kind of return. You can make up any losses by working like, an extra 20 hours in a year, and dumping it into your Roth. It's nothing. That's what I would do if I knew I didn't need the money any time soon. It will be very boring but effective. If you might need the money though, do nothing and keep it in cash. There is no reason to trade stocks when you have $5k to your name to be honest.
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Dec 31, 2014 20:38
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fruition posted:First, hit the longterm investing thread, then max out your 401k at least up until your employer match. Then pay off all your consumer debt with an interest rate higher than 4%. Then open up a vanguard Roth ira and max out your contributions for 2014 and 2015, that's like $11k. Once you've done that then max out your 401k competely for 2014, that's like $17.5k. Then if you still want to trade stocks you should have at least another $10k-$20k of after tax cash lying around that you're completely 100% willing to lose. If this isn't your situation then you should exit the thread and not look back until you are in this situation. Can you explain where you're getting those numbers? (11k and 17.5k). I'm seeing $5500 on IRS' website: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits Not being a dick and aware that I'm missing something, I just want to know how to keep track of what I should contribute in the future
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Dec 31, 2014 21:49
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Eldred posted:Can you explain where you're getting those numbers? (11k and 17.5k). I'm seeing $5500 on IRS' website: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits
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Dec 31, 2014 21:52
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Keisari posted:I'm personally holding American Electric Power. Liked it so far through 3 dividends. I think its a decent company, not amazing but decent. And boring. Just the way I like my stocks.
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Dec 31, 2014 22:12
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fruition posted:First, hit the longterm investing thread, then max out your 401k at least up until your employer match. Then pay off all your consumer debt with an interest rate higher than 4%. Then open up a vanguard Roth ira and max out your contributions for 2014 and 2015, that's like $11k. Once you've done that then max out your 401k competely for 2014, that's like $17.5k. Then if you still want to trade stocks you should have at least another $10k-$20k of after tax cash lying around that you're completely 100% willing to lose. If this isn't your situation then you should exit the thread and not look back until you are in this situation. What about money I may want between now and age 60-? Retirement savings and personal savings are two different things. I feel people always seem to forget this when they repeat the "max out your retirement account first!" response to such questions. I have a taxable account that holds an (admittedly conservative) portfolio of bond, money market and stock ETFs. The reason it isn't in my IRA or 401(k) is that I still want it to be semi-liquid, attaining reasonable market returns and for it to be available for potential use in 5-10 years. 60+ is a long way away for most people, if it comes at all. While maxing out your retirement plans may or may not give you non-negligible tax savings, it also locks your assets away for an extended period of time.
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Dec 31, 2014 22:54
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Cheesemaster200 posted:What about money I may want between now and age 60-? Retirement savings and personal savings are two different things. I feel people always seem to forget this when they repeat the "max out your retirement account first!" response to such questions. 401(k)s can be rolled into Roth IRAs (if you no longer work at the same company). Principal from Roth IRA conversions can be withdrawn in 5 years penalty free. It's certainly more of a hassle to set up a 401(k)->Roth IRA conversion ladder but there is undeniably the potential for big tax benefits if you do so. All that being said, I have some money in taxable accounts despite not maximizing all tax-sheltered accounts available to me. I do max out my Roth IRA first though, seems like a no-brainer.
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Dec 31, 2014 23:27
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Saint Fu posted:This is one reason to prioritize Roth IRA contributions because you can withdraw the principal any time penalty and tax free. Sort of a best of both worlds situation. I guess it depends on your savings goals. If you have a fixed income ladder to create certain cash flows (i.e. tuition, income supplement, etc), then the roth still can be restrictive. Also, taxable accounts are still the only way to go if you are looking for wealth creation in a 10-30 year time frame. A Roth doesn't really help you there. Roth (and most retirement accounts) do have a the protection from Bankruptcy though, which is a benefit I feel many people overlook. Cheesemaster200 fucked around with this message at 23:53 on Dec 31, 2014 |
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Dec 31, 2014 23:49
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Cheesemaster200 posted:I have a taxable account that holds an (admittedly conservative) portfolio of bond, money market and stock ETFs. The reason it isn't in my IRA or 401(k) is that I still want it to be semi-liquid, attaining reasonable market returns and for it to be available for potential use in 5-10 years. I've been building up an account like that, but I'm getting to the point where I want to start also contributing to my employer's 457(B) plan. It sounds pretty good to take $10,000+ pre-tax over the course of the year and invest it. Maybe I'm missing something, but there don't really seem to be any downsides so long as I'm happy to let it sit until I'm older.
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Dec 31, 2014 23:58
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So I just got in the mail an "odd lot offer" to holders of 99 common shares or less of Verizon. I bought Verizon when it was $49 U.S and the offer doesn't make sense. I use a discount broker and I take up the offer they charge me 1.50 to buy or sell a share. WTF And if I buy, they charge me over market price. dogpower fucked around with this message at 00:14 on Jan 1, 2015 |
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Jan 1, 2015 00:09
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welp, thats it for 2014. i sat in medium-long duration fixed income (mostly muni funds) for the year and did pretty drat well. not sure of my total return but was a pleasant year compared to all the doomsayers saying yields going up was imminent last january. the treasury/muni spread widened a bit so i didn't realize all of the gains from the treasury yields dropping, but i think that could normalize soon, going from >1% to <.5%. not to mention the CEFs I'm in are still heavily discounted, discounts which I expect to drop rapidly once the fed raises rates. (despite yields rising at that point, the net effect might be a gain on the funds as the discount drops due to fear dropping.) now... not sure what to do from here :P nebby fucked around with this message at 00:17 on Jan 1, 2015 |
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Jan 1, 2015 00:13
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Cheesemaster200 posted:Also, taxable accounts are still the only way to go if you are looking for wealth creation in a 10-30 year time frame. A Roth doesn't really help you there. This is poor advice for the following reasons. 1. You can withdraw the principal of a Roth IRA penalty-free at any time as long as it has been in the account for 5 years. This also includes money rolled into a roth IRA from a traditional IRA or 401k. This essentially means that you can withdraw all of your money penalty-free with 5 years of notice. 2. You can withdraw money from a traditional IRA, 401k, or roth IRA in substantially equal periodic payments penalty-free. These payments are account specific and there are several ways to calculate the payment stipulated by the IRS, but essentially it means that if you want to start withdrawing your retirement money when you are 45 (or 35, or 50, etc), you can take about 4% a year without incurring a penalty. 4% also happens to be a less-than-conservative spending rate for a portfolio, so this is pretty much most of what you should be spending anyway. 3. If you are able to access a health savings account, then obviously you can spend money out of that on all of your health care expenses penalty and tax free at any time. An HSA otherwise functions like a traditional IRA, and you should be depositing money to your HSA before your IRA anyway if eligible, so this works out as well. Using actual S&P return and yield historically, if you contribute $10,000 per year starting in 1981 with a cap gain and dividend tax rate of 15%, and an average realized capital gain per year of 0.5% (e.g. your have $100,000 of stock and you get a $500 capital gain distribution each year, or sell $500 and buy something else) then you will end up with $1,046,748 in 2001 with a Roth IRA vs $894,753 in a taxable account. All of these numbers (15% tax rate, 0.5% churn) are relatively conservative estimates of how much will be lost in tax. So even if you paid a full 10% penalty after 20 years you would still come out ahead in the Roth IRA.
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Jan 1, 2015 00:21
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Droo posted:2. You can withdraw money from a traditional IRA, 401k, or roth IRA in substantially equal periodic payments penalty-free. These payments are account specific and there are several ways to calculate the payment stipulated by the IRS, but essentially it means that if you want to start withdrawing your retirement money when you are 45 (or 35, or 50, etc), you can take about 4% a year without incurring a penalty. 4% also happens to be a less-than-conservative spending rate for a portfolio, so this is pretty much most of what you should be spending anyway. How? The only ways I know are for specific, pre-defined purposes which have significant restrictions. The remaining reasons are missing the point of "wealth creation" before you are 60 years old. Yes, you can withdraw your principal from an IRA, but you don't get the gains. Likewise, you can do a back door conversion from a traditional IRA to a roth when you need the money, but then you have a huge tax bill in high tax brackets (potential cash flow issue) and you are paying taxes at normal rates. With a taxable account you would be paying at the capital gains rate. In other words, if you keep it in an Trad IRA or 401(k) until you convert when you need it, you will pay that $1m mostly at the 39% tax bracket (more so with Obamacare and state/municipal progressive rates). With a taxable account, you pay for it at 10-15% capital gains for the earnings and 15% for the principal/state. Conversions to Roth make sense if you have a temporary reduction in your bracket.
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Jan 1, 2015 01:00
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Cheesemaster200 posted:How? The only ways I know are for specific, pre-defined purposes which have significant restrictions. I really try not to sound like a jerk when I post stuff but... if you don't even know the substantially equal periodic payment rule for retirement accounts, you really have no business advising people not to use them. http://www.investopedia.com/articles/retirement/02/112602.asp
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Jan 1, 2015 01:10
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Cheesemaster200 posted:In other words, if you keep it in an Trad IRA or 401(k) until you convert when you need it, you will pay that $1m mostly at the 39% tax bracket (more so with Obamacare and state/municipal progressive rates). With a taxable account, you pay for it at 10-15% capital gains for the earnings and 15% for the principal/state. *It might depend on your 401(k) plan whether it allows partial conversions or not. Not 100% clear on this myself either.
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Jan 1, 2015 01:51
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Wrapped up 2014 with a 141.4% return this year. Most of that was due to aggressive bets in Yahoo & King, as well as a few plays here and there that made nice gains like American Airlines and Ebay. GL to everyone in 2015. I'm headed into next year with a big bet on Canadian Solar, and a pretty big bet on First Solar
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Jan 1, 2015 07:49
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Barron's Top 10 of 2015...some interesting, impartial arguments here: http://online.barrons.com/articles/our-10-favorite-stocks-for-2015-1419655056 quote:With the Dow topping 18,000, the U.S. stock market isn’t brimming with bargains. But our 10 top picks for 2015, mostly household names, could deliver 20% to 50% returns over the next year.
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Jan 2, 2015 06:23
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Might wanna check out their 2011 performance
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Jan 2, 2015 06:42
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