Still think TITNC3: Return of the Iceberg was peak

I was just looking over the end of the year dividend and cash distributions for my different 401K holdings and imagining some schlub moving from a fund that hasn't issued it's dividend yet to a fund that's already distributed...what a nightmare...I'm glad people here can be amused by my musings...
$CHCLX paid $2.121 on 12/8 CRAZY!

 

Just had to buy back and roll my $CLNE $5 call...bought back for a $27 loss...Sold the Jan for $90...I don't know why this pops every time options are expiring but the rolling and buy back is working out for me.

 

Blackberry, you insufferable ass!




VALE is my new best friend for now.

 

Hopefully not too off-topic, but can someone talk to me a little bit about taxes? I don't want to go throwing around any hard $ amounts in public, but I also don't like talking finances with family/friends...

I'm (fairly) young at 26, run a sole proprietorship while going to school full time. I don't have a 401k or IRA, which I know needs to be remediated quickly. All of my investments are in a personal account that I manage.

That being said, I'm under the impression I can only contribute $6,000 a year into an IRA, correct? I made very little this year due to COVID, therefore I'm under the impression I should make my contribution into a Roth IRA, correct? Does anyone know how a 401k would work and how big of a pain it is to set one up when you're self-employed? A quick Google search pulls up SEP IRA's and Individual 401k's... The reason I've put a lot of the retirement account stuff off is due to being self-employed and it seems to make it all far more complicated, but I assume the tax advantages of these retirement accounts have to make them worth it...

That being said, I'm a bit confused with the advantages of these accounts. My understanding: Traditional contributions are tax-deductible, and withdrawals are taxed as income, correct? Roth contributions are not tax-deductible, however, the withdrawals are tax-free. You have to wait until 59.5 to draw from any of these accounts without penalty. Looks like the penalty from early withdrawal is your withdrawal is taxed as gross income, plus 10% penalty. (feel free to correct anything that's incorrect)

So, my questions:

• How does one move a large sum of money into a retirement account (ie not at $6,000 per year)?
• All of the funds in my personal investment account has been taxed, is there any reason to move that money into a retirement vehicle?
  
• As long as I hold each stock for a year (and a day) or more, I'm taxed under long term capital gains (0-20%, but likely ~15%). Assuming the Tax Cuts and Jobs Act (2018) isn't done away with, this seems like a good way to continue to manage my own investments without paying too much in taxes. This would also keep my funds more liquid and accessible for things like buying Real Estate. Am I missing something here?

Sorry for the novel. I know there's a lot to be learned regarding investments and taxes- I'm not sure where exactly to start.

 

Rather than type...
Check out the Nerdwallet article they JUST published last month.
https://www.nerdwallet.com/article/investing/retirement-plans-self-employed
But basically solo/self is Roth IRA unless you want to do some tricky stuff

 

You can use any IRA $$ early if it is for a 1st time home purchase, no penalty. I cleaned out my IRA's for a down payment and had no penalties.

 

And if you looking to convert a traditional stock investment account to a retirement IRA you have to liquidate the stock account, set up a dedicated IRA and then transfer...still abiding by the $6000 limit

 

Thanks for the link, I'll check it out!

Great point, I wasn't aware of that! I'll be using a VA loan when I figure out where I'm settling down, but that's great info to be aware of

 

crwd at $203.75 shop has been good

 

Oh my $ZOM at 3pm today...I have no idea why... 0.2067+0.0438 (+26.89%)

 

own at $131...why didn't I sell the house

 

Presently on hold with TD trying to figure out wtf this is...I don't even know if they are "open" but I'm on hold and "Currently experiencing longer than usual wait times"

 

Maybe a glitch, when I’ve been exercised it happened on Saturday.

 

Yup..
Someone named "Mary" with an extraordinarily heavy Indian accent informed me it's a "thing that happens" when you are still holding on friday even if you exercise. She said it should fill tomorrow...
Even though I Exercised them at 9:37AM
Geeez..
Make me sweat...

 

BTW how did $FEYE get hacked and GO UP? WTF is going on?

 

go CHWY! beat that down market!

 

wish i kept UAVS, maybe it'll settle back. going in on GEVO for like the 10th time

 

Worth noting: you can only re-contribute 6k/year still. So if you pull 20k for a down payment, you can still only put back in 6k/year, without the interest benefit like a 401k.

 

Wow...missed the buying opportunity this morning thinking a 2x dip was coming...Wanted to add more of our old friend $NRGU sub $55 and it didn't happen...not that I'm complaining.
BTW all those genome dna stocks are popping today

 

Anybody wanna do a stimulus 2.0 challenge? Once we all get our checks, we get 3 months (or whatever) and see who has the most at the end of it? $600 is enough to buy a way OTM TSLA option lol