For all of my short-term investments, I have liquidated them all as well. Since I’m not near retirement age, I will let everything in my IRA ride. I do agree that the market is vastly overvalued. Not hard to come to that conclusion with 20%+ gains this year and the average being 8%-12% annually.
I sold all my stocks and bonds today.
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Just think about the 30 YO who is paying this 1-2% per year for 25 more years ...
I just did a rough calculation on 1%/yr fee starting with $10k and adding to the investment every year for 40 years. The 1% fee will cost you about $1,300,000.00 in lost returns over that 40 years.
Particularly in an IRA, where taking gains does not create a capital gains tax liability.Good for you, I thought about it for the past week thinking at the least, this rally will take a break in a little bit of a pull back , never did anything about it. I hope I don’t regret it.
I think you’re thinking is spot on but then again here I am running on a hope and prayer now.
There is certainly nothing wrong with taking unrealized gains and turning them into real gains
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Totally agree, and I've done most of those things for a very long time.
Didn't need any "expert" help-- that list is pretty self-explanatory and easy to execute on one's own!
I have to disagree with the self directed position, at least for some. Do you do your own surgery? I don't.
Now, each case is different as are investment houses and advisors.
Sure you pay a fee, but at least in my case I have been shown a wealth of products I would never have known about. The size of your portfolio comes into play, of course.
Just my 2 cents.
Now, each case is different as are investment houses and advisors.
Sure you pay a fee, but at least in my case I have been shown a wealth of products I would never have known about. The size of your portfolio comes into play, of course.
Just my 2 cents.
Some will... My IRA is about 65% huge ETFs-- VOO, VIS, VTI, and 35% short term CDs. The VIS and VTI are attempts to avoid the FAANG group (LInked-in doesn't count) and what I perceive are their substantial overvaluation.
The trend over the last 20 years to solve problems has been to print more money, which shortly lives circulating in the hands of poor people before some rich dude gets it and stashes it in the market-- either stocks or real estate. It would be a rocky dip so I want some fundage to buy said dips.
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Like annuities?
Just ribbin' ya!
You may be right given my portfolio is almost certainly not be big enough to run into some of the issues (taxes?) that you may face given the past income you have described.
But, man, the conventional wisdom of most of the Buffet-type of slow/steady investment gurus of putting money into a good index fund every month seems to outperform any other product that I've ever heard of...
Biggest no brainer in the world.Like annuities?
Just ribbin' ya!
You may be right given my portfolio is almost certainly not be big enough to run into some of the issues (taxes?) that you may face given the past income you have described.
But, man, the conventional wisdom of most of the Buffet-type of slow/steady investment gurus of putting money into a good index fund every month seems to outperform any other product that I've ever heard of...
Obviously this depends on the person’s net worth and assets.
There’s a big difference between $50,000 and $5M+
Many affluent families feel more comfortable with outside help for wealth management, taxes and estate / trust planning. They don’t want family members making poor decisions.
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Not a money guy myself, but selling at the end of the year, I thought "on average " was not the best move because a lot of people are selling because of tax positioning, thus lowering the market for just this reason. Of course unless the economy is full boat tanking for a reason? Is there any validity to this theory I heard years ago?
And, their stuff can be way more complicated. Investment properties, rental income, 1031 exchanges, business incomes, etc.
That and it frees up time. If they feel set for life, then what's slightly less gain each year? more time for the golf course or whatever. And when they are gone, their survivors are (hopefully) left in good hands.
If I have money in a tradtional IRA account when market downturns, it's just a good opportunity for me to start doing some roth conversions in-kind. Also buying more of the dip if I have any more spare cash.
Not really planning on major purchases that require a lot money anytime soon(in my 20s).
Not really planning on major purchases that require a lot money anytime soon(in my 20s).
Same. Sitting on the sideline can make you miss a lot of upside.
I would never have guessed my account would see 16% growth in 2024.
People sell their loser stocks to take capital losses that they can use to offset capital gains on winner stocks. Problem is, in 2024, there were not that many losers. We had a post election rally, but the expected "Santa Claus" rally has turned into a lump of coal.
Additionally, there are market worries that the expected interest rate cuts from the Federal Reserve may be less or fewer than previously thought, and instead, fears of a ballooning federal deficit and inflation are actually causing interest rates to rise in the bond market. The effect of new tariffs on consumer spending is also spooking things.
Uncertainty means risk, and increasing risk means lower market prices. It just seemed like a good time to get off the down escalator as prices fall. When markets fall, cash on the sidelines moves back in looking for bargains. So I am letting someone else take the short term losses in the decline I am expecting. I will get back in when prices are lower but stable Buying into a falling market as it falls is known as "trying to catch a falling knife".
Just to be clear - when you say you sold all your stocks and bonds did then buy into a stable money market fund (or equivalent) ?
I hope you didn't actually cash out your IRA and put the cash in your mattress - tax time will be here in a couple of months and the tax liability on a 100% withdrawal would make me more than a little upset.
No, I did not withdraw the money. Its parked in a money market fund.
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