Talking stocks, trading, and investing in general

Discussion in 'Business, Careers & Education' started by mikeman, Feb 2, 2011.

  1. jbarwick

    jbarwick Senior member

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    Depending on your expected future tax rate, Roth's aren't always the best. If you pay say 10% now in taxes and expect to withdraw in say the 20% bracket then a Roth is a good idea. If you pay that same 10% then will be in say a 5% bracket then the Roth was not a good idea. I know tons of things can change in between now and retirement but just something to think about.
     
  2. Piobaire

    Piobaire Not left of center?

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    Your logic makes perfect sense but I always figure if I can afford to pay a tax on my retirement money now, and never again, that's the best route as, like you said, tons of things can change between now and then. One thing I feel is tax rates will only increase from here on in.

    I just wish I still had the ability to contribute to such funds. :(
     
  3. otc

    otc Senior member

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    Piob is right...taxes are at a historical low and probably aren't moving downards.
    Paying the taxes now is also a more optimistic view...wouldn't you *like* to be withdrawing in a high tax bracket? If you are planning retirement and making Roth contributions in your 20s....odds are you will manage to scrape enough together to be in a high tax bracket.

    Piob--I think you have explained before, but why aren't you making backdoor Roths? Every year, shouldn't you and the Mrs. be dropping 5.5k into a trad IRA before the deadline and then rolling it into a Roth? I can understand not wanting to pay taxes on all of the deposits and gains made in a longstanding traditional IRA, but why keep contributing to the old IRAs when you could do the rollover? I imagine you have enough cash flow to afford making your contribution in a single lump sum and immediately rolling over.
     
    Last edited: Jun 19, 2014
  4. Piobaire

    Piobaire Not left of center?

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  5. otc

    otc Senior member

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    Can you or the wife roll your traditional IRAs into your work sponsored plans? Even if only one of you can do it, it should still be worth it (IRAs are all calculated on an individual basis except for the income limit if filing jointly).

    Unless the investment plans in your 401k are terrible (and as the bossman, you should really get on that), this seems like the way to go. You can Roth up all of the new money, and the old money can enjoy the same tax advantages from your 401k which hopefully offers a bunch of cheap vanguard funds unless you guys are doing a disservice to your employees.
     
  6. UnFacconable

    UnFacconable Senior member

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    Very interesting, didn't realize you could do this. So if you make too much for a pre-tax traditional IRA, you can still fund a traditional IRA and convert to Roth? Because I was never eligible for a pre-tax IRA (except for one year a while ago) and I've never rolled any 401(k)s into IRAs, it might make sense for me to start doing this. Sounds like if you don't have any other IRAs to worry about proration there's really no downside.
     
  7. amerikajinda

    amerikajinda Senior member

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    Thanks! I don't have more than 5% in any one stock (and I have like 25 stocks spread across a range of sectors) so that helps me sleep well at night.

    Sold my SLW today... picked it up back in January for $20.98


    unloaded it today at $24.66 for a $3.68/share gain.

    Also picked up some MGNX (Macrogenics) today at $22.36/share -- target is $30.

    [​IMG]


    Here's a little bit about MGNX if you guys are interested in going along with me for the ride!

    http://seekingalpha.com/article/226...-cap-bio-with-a-great-entry-level-opportunity
     
    Last edited: Jun 20, 2014
  8. Piobaire

    Piobaire Not left of center?

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    There's a couple of reasons I don't want to do it to mine and Mrs. P's plan is not the best so not doing it with hers.

    They need to just get rid of income limits. If I did it then there is still the whole deal about taking out the remaining taxed IRA when I retire. Once again it's prorated so if I have say, a total of 500k in IRAs and for easy math 400k regular then 100k taxable and I take out 10k I would have to claim 20% of that 10k different than the other 80% as the other 80% has not have the principle taxed yet...it's a fucking mess.

    I won't get into details but let's just say a well built deferred compensation plan for YT was the answer.
     
  9. guyver00

    guyver00 Senior member

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    My first two-bagger. Should have bought more back then.

    [​IMG]
     
  10. Texasmade

    Texasmade Senior member

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    I wish I was paying attention to the market today. My largest position, NGLS jumped nearly 18% today before falling 10% in aftermarket trading. I've held this MLP for so long that my basis is about to go to zero and my annual cash distributions crossed over 10% almost a year ago.
     
  11. amerikajinda

    amerikajinda Senior member

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    Whoah that is awesome! :slayer:
     
  12. guyver00

    guyver00 Senior member

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    Not anymore after today's drop :D, but I bought some more, seeing it's on a 10% off sale. Plus I also bought some ATK today, might add some more when my next paycheque comes.
     
  13. amerikajinda

    amerikajinda Senior member

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    Alliant Techsystems seems to be a good buy, and it's always good to pick up more of a strong stock on the dips... keep of the great work!
     
  14. guyver00

    guyver00 Senior member

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    What are people's thought on TWTR? I bought about $2,000 worth of it a few weeks back when it was below $35. I think there'll be quite a bit of growth looking forward, as more companies are using #ask[insert company name] to get in touch with consumers real time, sort of like with FB.

    I don't think I'll buy more, since this is a very speculative bet.
     
  15. javyn

    javyn Senior member

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    Woo hoo, ACTC has a CEO now.
     

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