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Talking stocks, trading, and investing in general

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

  1. jcman311

    jcman311 Distinguished Member

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    It also somewhat ignores that most will be in a lower tax bracket at retirement. During peak earning years, people usually have significantly more expenses than retirement. One can plan his income for the year (in retirement) and take advantage of aiming for certain brackets. One usually does not have that advantage in their peak earning years or it is somewhat difficult through accounting.
     
    Last edited: Jan 16, 2019

  2. Piobaire

    Piobaire Not left of center?

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    I thought you might have me on ignore.

     

  3. otc

    otc Stylish Dinosaur

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    You fuckers know that I beat both of you to that comment right?

     

  4. venividivicibj

    venividivicibj Stylish Dinosaur

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    Sorry, was 3 pages behind and skimmed.
     

  5. lawyerdad

    lawyerdad Stylish Dinosaur

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    Yep. It's not just (potential) tax reduction, it's tax deferral. It all depends on the variables, of course. but I'd much rather pay, say, 33% taxes on my current income in 30 years (especially since I'll probably be dead in 30 years) than pay 29% taxes on it now.
     

  6. gettoasty

    gettoasty Stylish Dinosaur

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    Has anyone calculated their cost basis in their retirement account? I recall only doing this once before when I was looking at rebalancing the portfolio, trying to time the market in a way so that I at least sell above my cost when exchanging funds. I have a small portion in a "balanced" fund (10%) and want to move the money back in to my "growth" fund.

    It is a negligible amount but seeing it on my statement is just nagging at me. I also want to move the lump sum now since the market has dipped, plus, as I am reducing my salary deferral, doing this I feel will allow me to participate more on a potential upside versus the small DCA following reduction to my monthly contribution.

    If I remember correctly, add up all your purchases together with reinvested dividends and capital gains, and divide that by the outstanding shares to arrive at the cost basis (i.e. Purchases + Dividend Reinvested + LTCG Reinvested / Total Shares)

    If I did my calculations right the "balanced" fund after 3 years has a gain of 3.2%.

    Edit:
    I know some custodians/providers like Vanguard will show your cost basis. At least in my IRA with Vanguard it does.
     

  7. jbarwick

    jbarwick Distinguished Member

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    Your basis is only what you paid for the investment. Dividends count as return, not basis. If I pay $1,000 for an investment and it goes up to $1,100, my basis is always $1,000 even if dividends were reinvested.

    I guess figuring out your basis with an increasing share count due to reinvested dividends would be an issue.
     

  8. jcman311

    jcman311 Distinguished Member

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    Nice recovery this week.
     


  9. IChen

    IChen Senior Member

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    I've been thinking about occasionally writing a blog post on SeekingAlpha....after reading a lot of stupidity really on Reddit investing subs, well it's expected I guess.

    On another topic, I hate myself for now realizing I'm in 7 different positions when my goal of 2019 was to be in 4, 5 max. Added GS in that low Dec, making myself believe that their new CEO would bring a wave of fresh air to their trading. Now thinking back...trading is only going to continue to get harder probably..oh well. I also don't know why I even own Apple, but then again I'm holding this till 2020.

    Last random topic: I hate that Fidelity is offering fee free funds. I just think it's so.....insincere to do so. I understand that they were playing catch-up to like Vanguard but really? Fee Free? Websites cost money, the research that goes into these funds cost money. They need to hire fund accountants. I just don't understand how influencing people to come invest passively in these funds will make people consider their active investing products.
     

  10. brokencycle

    brokencycle Stylish Dinosaur Moderator

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    You don't understand how advertising free funds might cause people to call fidelity advisors or go to their website?
     

  11. IChen

    IChen Senior Member

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    It'll cause people to call and go to their website. When I recently went to Fidelity, they introduced it even though I wasn't there for anything investment related. I just think it's a great move to get a bigger market share of index fund, but they're a firm with strong history of the active side. I'm not saying they need to continue pushing only active, but I just don't see how attracting millennials who are on the passive investing train to their fee free funds will do any good for Fidelity's active management business.

    Don't get me wrong, it's a strong business move to garner a big amount of clients quickly. If anything, I think it's putting a lot of pressure on their active management PM's to really perform: their clients are already pulling/have pulled money out of their actively managed funds. The insincere and disingenuous comment is not really how I'm skeptical of performance, but in the end what's next?
     

  12. venividivicibj

    venividivicibj Stylish Dinosaur

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    :violin:
     

  13. Omega Male

    Omega Male Senior Member

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  14. gettoasty

    gettoasty Stylish Dinosaur

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    DCA can be viewed as one way to manage risk and I read lump sum revealed better results over a long term.

    Edit:
    I am not sure if this adds to the benefit but perhaps it is also why rebalancing is necessary as you can be moving in and out of funds with a large portion.
     
    Last edited: Jan 20, 2019

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