How are your investments doing?

[DarkBlack]

Essentially, Canada just boinked an unruly pig on the nose. GM just lost 15% retail against every competitor in the country and Canada wants their billions in plant investment back. It's a great time to buy a Chevvy, because Canadians don't want them. Inventory costs are already eating GM alive, plus losing a huge market.

Canadians are developing some reasonable regulations for late stage capitalism. This one is a wakeup call for all international markets. The Canadian tariff law is a landmark in international trade regulation that will doubtless be copied my numerous nations around the world.

Their stock has actually rallied the past year. Up 36% year to date.

Maybe bail out this morning if you own it. Right now premarket is -0.26%. I don’t directly own any, other than indirectly through S&P index funds

 

[Snobdds]

Sooooooooo, what happens if you have your $140 stock..... either over night or over a weekend, bad news comes out and the next opening there is an order imbalance.... and it opens at $90? Even stop losses have risks. If you used a market stop, you got taken out at $90 and what happens if the stock bounces up and closes at $110... What if instead, you had a stop loss limit in at say, $120.... stock opens at $90. You aren't taken out because of the limit....and the stock proceeds to drop to $70.

Do you use market stops? Limit Stops?

Those are wild, made up numbers but I've seen stuff like that happen.

If you do actuary stuff then you are likely good with numbers.


Regarding bonds in retirement..... maybe some. What if instead, someone has a Roth account.... what if those assets are dropped into dividend paying stocks, REITS, Utilities, Corp Bonds.... things that create cash flow. This cash flow is now tax free with the ability to sell covered calls against (stock) positions (for more tax free cash flow), market gains (and losses because we all know, the market WILL and IS going to go down at some point in time, it's part of its DNA)

What if someone has a taxable portfolio? Now, bonds might have my interest. (though might take a sizable amount of funds) Put cash into (whatever state you live in) Municipal Bonds. Stagger them so the bonds (which pay semi-annual) can pay monthly. Now, you can have a portfolio of bonds, no risks of stocks (nor any growth from them) but the income is now tax free and potentially monthly.

(above are all my thoughts/opinions, not advice)

In 22 years of doing this, I have not once had an open position where a limit order failed to execute. I guess it's possible to have the very unique scenario you laid out happen, but mathematically it's very very very very very very low. If you are still not convinced, find me an example in the last 20 years where that happened. I can't think of one case and I am pretty queued into all of this. All exchanges have circuit breakers where they will just halt a stock if a stock changes too much in a given amount of time. I have seen stocks hit the circuit breakers.

Regarding your second thing...There are a lot of ways to configure retirement income. Having a divided paying strategy is not a bad way to go. Is it the only way, no. Most strategies are going to have you have low exposure to market risk at higher age brackets. Most are going to be dictated on how much principle you have and how much money is needed in retirement. Some people will still need high growth strategies due to low savings. Some people will have enough principle and can do a low risk bond strategies. It's very unique and specific to each person.

 

[BackRoad]

Mr. Snobbds, it's relatively easy to pull the trigger if someone provides the target. I suspect the secret sauce is how to identify the targets.

You mentioned momentum and sufficient volume being key...

Is there a method or logic for identifying the "MFI like" fast rising stocks before the velocity slows?

 

[mark in portugal]

There are thousands of stocks; millions of investors.
When any one of those stocks rises a lot, whoever invested in that stock will seem to be a genius.
Maybe; or maybe they were just lucky.
Those who didn't earn well will not be heard from.

 

[IXLR8]

I also use Fidelity for some of my investments. Had a similar experience this past year where an advisor tried to pressure me into letting them manage my entire portfolio. I would have had to give them complete control to buy/sell stocks, mutual funds, everything. Sounded like an all or nothing proposal. Uhhh, no thanks.

I may not have Warren Buffet's track record, but I've done pretty well over the years. Don't really want to give up control.

Does anyone have any experience with Morgan Stanley? I have a small inherited IRA with them, and they've been trying to get me to move my regular IRA there too. Apparently they have some sort of family plan, where family members' assets are combined for purposes of determining fees (sisters have accounts there). I'm reasonably satisfied with the outfit that handles my IRA currently, but their fees are a bit on the high side.

I was with Morgan Stanley, they fully managed my account. Financially I was doing okay but my returns were half that of the market. They had me in some stocks that were going nowhere and I knew the companies as I was in that business. I tried to get them to sell those stocks several times... they wouldn't do it. After a bit of digging, I was not happy with their investment philosophy and I left them and went back to Fidelity. I'm doing better with Fidelity, they have an investment philosophy that is more in agreement with my own. Again a fully managed account, I just don't have the time, or interest, in managing my own account. MS does have some much better retirement planning software than Fidelity does. My Fidelity management fees % wise are lower than what MS was charging me, but I also have more money now at Fidelity due to consolidating my accounts.

 

[IXLR8]

The company I worked for for 30 years treated me pretty good, at least when I first started. They would put 12.5% of my earnings into a 401K, I also started putting 5% of my earnings into the 401K. I then added 1/2 of my raise to what I was already putting into my 401K. If I was putting 6% into my 401K and my raise was 4%, for the next year I would put 8% into my 401K. The last ten years with the company, every year they would reduce what they put into my 401K and by the time I left they were only putting in 5% of my earnings. I do have a mortgage payment, no car payments and at the moment the value of my account is rising faster than I can spend the money. I live a simple quiet life and really don't spend much money. I'm comfortable with my investments and expenditures.

 

[DarkBlack]

I hope nobody is holding GM stock.

Obviously investors haven’t headed the warning of your post
Up another 4% since you posted

 

[CloverKnollFarms]

Obviously investors haven’t headed the warning of your post
Up another 4% since you posted

View attachment 4480688

This is why timing the market is a joke. People will see a single story and that is not the whole picture.

I don’t think Canada will sink GM

https://www.barrons.com/articles/ford-gm-stelantis-stock-price-emissions-standards-7695d111?reflink=desktopwebshare_permalink

 

[jyoutz]

This is why timing the market is a joke. People will see a single story and that is not the whole picture.

I don’t think Canada will sink GM

https://www.barrons.com/articles/ford-gm-stelantis-stock-price-emissions-standards-7695d111?reflink=desktopwebshare_permalink

The article is behind a pay wall.

 

[CloverKnollFarms]

The article is behind a pay wall.

Odd, I saw it free

 

[zzvyb6]

Terrible. My RMD Uniform Lifetime table number is 23. I'm making more money than they require me to take out so my IRA is still increasing despite the RMD. Thus I keep jumping tax brackets. I'm lost as to what I should buy: New Cab tractor (I want one with a self leveling loader), solar panels for the barn, or how about some land for a data center ???

My advisor told me point blank: "You saved too much money".

 

[Torvy]

Terrible. My RMD Uniform Lifetime table number is 23. I'm making more money than they require me to take out so my IRA is still increasing despite the RMD. Thus I keep jumping tax brackets. I'm lost as to what I should buy: New Cab tractor (I want one with a self leveling loader), solar panels for the barn, or how about some land for a data center ???

My advisor told me point blank: "You saved too much money".

Better idea. We need to eliminate RMD. It's none of their business if I save money for my progeny, or a charity, or for them to sort out when I die.

 

[deserteagle71]

Better idea. We need to eliminate RMD. It's none of their business

^This!

 

[CH4Ohio]

Better idea. We need to eliminate RMD. It's none of their business if I save money for my progeny, or a charity, or for them to sort out when I die.

Remember. The RMD is the result of saving money BEFORE taxes. The original deal was that you could lower your tax bracket while working and save money without paying income tax on that money. The flip-side of that decision is that you pay those taxes at some point so you have to start taking distributions (Required Minimum Distributions) before you die and start paying the taxes. Nothing says you have to “spend” the money. Simply withdraw, pay the taxes, and reinvest the “after-tax” money if that’s best for you.

I get it. No one likes taxes. But RMDs are the result of a decision WE made years ago when we were focused on the early stages of this saving journey.

(Reminds me of a saying about death and taxes …)

 

[DarkBlack]

Simply withdraw, pay the taxes, and reinvest the “after-tax” money if that’s best for you.

 

[steve tym]

My finance guys says if I stay on the track I'm on, I'll die with 4 mil in the bank. Why do I want to do that?

 

[Quaffer]

Remember. The RMD is the result of saving money BEFORE taxes. The original deal was that you could lower your tax bracket while working and save money without paying income tax on that money. The flip-side of that decision is that you pay those taxes at some point so you have to start taking distributions (Required Minimum Distributions) before you die and start paying the taxes. Nothing says you have to “spend” the money. Simply withdraw, pay the taxes, and reinvest the “after-tax” money if that’s best for you.

If your RMD withdrawals are sizeable enough, you not only pay tax you deferred earlier, but also get penalized by having itemized deductions eliminated, and Medicare premiums double, triple, or nearly quadruple. There's no free lunch ... the taxation punishment kicks in pretty good at $150k annual income but doesn't stop there. The level of tax punishment keeps rising as income rises above that ....

 

[CH4Ohio]

If your RMD withdrawals are sizeable enough, you not only pay tax you deferred earlier, but also get penalized by having itemized deductions eliminated, and Medicare premiums double, triple, or nearly quadruple. There's no free lunch ... the taxation punishment kicks in pretty good at $150k annual income but doesn't stop there. The level of tax punishment keeps rising as income rises above that ....

I get it. Simply pointing out that we could have saved our money in our 401K or IRA AFTER TAXES if we had chosen to. Later when Roth accounts became available, I (we) could have chosen to pay current taxes and contribute 100% to a ROTH account.

At the time, I (like many others) decided to save most of my contributions BEFORE TAX. I entered into that agreement knowing that I'd have to pay taxes on it later and would be forced to take distributions. That seemed like the right thing to do at the time and I entered into that "contract" freely.

I think the government is at fault for most of the problems in our world. Just can't blame "them" for our RMD situations.

 

[CloverKnollFarms]

Most of our retirement is in ROTH IRAs and ROTH 401K.

 

[DarkBlack]

I get it. Simply pointing out that we could have saved our money in our 401K or IRA AFTER TAXES if we had chosen to. Later when Roth accounts became available, I (we) could have chosen to pay current taxes and contribute 100% to a ROTH account.

At the time, I (like many others) decided to save most of my contributions BEFORE TAX. I entered into that agreement knowing that I'd have to pay taxes on it later and would be forced to take distributions. That seemed like the right thing to do at the time and I entered into that "contract" freely.

I think the government is at fault for most of the problems in our world. Just can't blame "them" for our RMD situations.

Like you said, RMD doesn’t mean you have to spend the money. You effectively just have to account for taxes on it, at minimum.
Some brokerages even provide simple 2 or 3 clicks setups, to transfer your RMD investment choices to the same investments , within their taxable account.
To you, you are still invested in the same investments in the same brokerage, you just will have it reported as income on your taxes.
In my humble opinion, having too much RMD money, is a good problem to have, compared to the many people without enough money