'glad to see some are paying attention on their 401 ira and so on I am already thinking of moving some to safer assets I know this market is going to tank, lot of money being injected right now actually setting records. so we do got to watch
Another thing to pay attention to for the next generation, the SECURE Act will be a burden on your children or grandchildren. If you have a 401k or traditional IRA, your heirs will have only 10 years to get it out and pay taxes on it. If they don't draw it out by year 10, the government will assess a 50% penalty on it. Highway robbery! What Is the SECURE Act? (usnews.com)
10 years seems like plenty of time for an inheritor to figure out how to minimize their tax burden and take the funds. There are also exceptions that allow for longer holding (as per your link). Definitely not as good a deal as the former rule which allowed a roll over into an IRA for the inheritor, thereby deferring taxes until retirement.
The SECURE act all but nullified anyone's previous trust arrangements. They are essentially no longer of any value to conserve funds. Talk to a financial advisor that understands the implications to avoid any unpleasantness. As it is, if I die unexpectedly in 13 years at 72, my daughter will be 44. She will be in her prime earning years. Her likely income while trying to draw down my accounts will shove her into the next tax bracket or two. However, my main reason for posting this was to spur folks to do what I'm doing: Move as much to ROTH as possible before it gets to them. Also, talk to your heirs so they know that they have only 10 years to deal with it lest they lose a sizeable amount of that investment. The SECURE act does NOT secure your future, it gives government a new way to rip you off of your hard earned and efficiently saved money. I've got 12 years to convert my 401k to ROTH. Since I'm not working and my wife makes 1/3 what I did, we are in a LOT lower tax bracket. 140 days until I can pull the trigger on my first, non-penalty roll over event. With any luck, this will be a moot issue for my daughter.
I actually moved my first round of 401k to ROTH IRA last month. I also put it in a managed account that will go to cash when the market starts to tank and move it back to stocks for the recovery. They claim higher returns, even after fees than my usual ETF. We shall see how it goes. Anyone can make money in a bull market. Let's see how they do in a bear.
Easy, don't leave money spend it that is why you have the account and did this for 40 years. Buy stocks with dividends also the good ones that never go down Coke for one Kellogs for another
Some really strong, healthy companies are at risk of shooting themselves in their feet. Coke’s shareholders were not pleased with what some percieve as their woke direction (In addition to woke, their internal decisions have cost them some good people). I don’t have to mention that ‘red store’ or the ‘blue’ beer. Patrick
Would someone please give me a simple explanation of what "woke" means? I have checked all over and most definitions that I have found aren't really definitions.
That would require a political explanation, and that is to be avoided. If you really don't know what it means, PM me and I'll do my best to explain the term.
By way of update, my managed account is doing OK, not great but the market sucks in general if you aren't selling short. My very tiny crypto investment is still 1/2 of what I paid for it. It's a good thing I only invested $5! One of my investment accounts that was in an S&P ETF fund is still up 50% from when I bought in the dip of March 2020. The rest are up but not at their highest. Now that I'm retired and my wife is retiring in a month, we aren't doing much more investing outside of managed accounts so I'm just hoping the rising interest rates do something positive, like lower the cost of a beach house my wife has been wanting for 20 years. Woke references a speech by a person who equated it to being informed, educated and conscious of injustices and inequalities. Anything beyond that will devolve into a thread-locking event with red loctite.
Woke will be defined differently depending on who you ask. Just like the word liberal, MAGA, etc. Being informed is not one of the words I would use to describe woke, quite the opposite. That just goes to show how different people see the definition differently. One side sees it as being a good thing, the other sees it as bad. As for the market, I have no idea what the future holds, my investments are like a roller coaster that has not meet the top of the ride since plunging down the hill a few years ago.
Darren - I was referring to your buy of CFVI back in 2021 from above. Looks like it did well for awhile.
I did sell everything on the way up. I let my money sit there for a while and then I bought Amazon on the split at $109
