Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

it’s sort of intentional. Without trying to get political the tax software companies have lobbied in the past to keep the tax structure confusing so that people don’t want to try to attempt it own and are driven to the tax prep software.

It’s confusing at first but at least iras aren’t that bad once you know them. Traditional vs Roth, incoming limits, distributions etc.

Like Roth for example I can put 5k in and it turns to 10k. Next year I decide I want to buy a house. I can pull that 5k tax free at any time. Contributions are already taxed income so they can always be pulled out at any time. If I pulled 5001 I’d be taxed on that 1 dollar as earnings from the investment.

 

that is one Pro benefit for Roth IRA, no penalties for early withdrawal, is there any kind of waiting period for it for after the funding?
for the other one i think there is also an additional penalty on top of the tax for early withdrawal unless you have a very good documented reason, such as a medical hardship

 

right. With traditional it’s an early withdrawl under 55 or something like that.

nope. As far as I know anytime anywhere you can pull contributions without tax or penalty. As said they’ve already been taxed so that’s your money to do what you want with it.

 

This is only true for a first time home purchase and limited to 10k.

There is a 10% penalty for early withdrawal from a ROTH. Exceptions are death, huge medical bills, first time home, or back taxes.

I think there's a 5 year minimum holding period.

It's actually all a little bit complicated so do your research or consult a tax professional but for all practical purposes I personally consider all funds in an IRA or a ROTH as "locked up" until retirement.

 

I’m trying to understand the coronavirus and China thing. China shut everything down for a while, ok. That stopped the spread. Then they reopened everything. Wouldn’t just 1 or a few people having it now start the whole thing over again for them? It just doesn’t add up. How did it just disappear? It won’t come back?

 

At the low point so far, my retirement stuff was down 12.3% from the peak a couple of weeks ago. I'm down 9.1% as of now and just had some dividends pay out on Thurs (got more shares with the lower prices). This week will give us an idea if things might have stabilized at all, but I doubt it. I think it will still be wild swings. People just need to relax and use common sense.

 

Seems to me like it would come back. Who really knows about what actually happens over there though.
I guess they might have to lift the lockdown too early and send people back to work, it may not be possible for them to be shutdown for two months straight.

 

yeah I know I can tap into my Roth contributions but like. Why should I? It’s my retirement in 20 to 40 years.

 

Smh Ah he's young he will learn.

 

Wrong

Roth contributions can be withdrawn at any time for any reason with no tax or penalty. Early withdraw of EARNINGS applies to your above statements

 

So the Fed funds rate has been slashed to 0 - .25%. I guess the Fed had to fire it's last shot at some point.

 

To add to this, Roth conversion (IRA or 401K to Roth conversion) principal can't be withdrawn prior to 5 years and before age 59-1/2 without paying a penalty. But to play it safe, a Roth IRA is intended to be a long term investment so plan on not touching it until 59-1/2 if possible.

I think this was announced today to try and prevent the ups and downs that might occur during the week with people anticipating it. They are really trying to stabilize the market since this is such a unique scenario we haven't seen before.

 

I guess will see what the futures market looks like later. I don't think it will be well received.

 

It's just wrong that I find myself thinking, I can't wait for Monday.

 

A lot of people seem to forget that despite all the intervention in 2008 one of the worst downturns in decades couldn't be staved off. We now have schools, restaurants, bars, events and travel being closed or restricted. To top it off there was already something wrong with the repo market going back to September.

It's now a question of waiting for the next domino to fall.

 

Futures dropping like it's hawt

 

Buy on the dip

 

BTFD!!

 

Don’t catch a falling knife.

 

I'm not buying anything. The fat lady has yet to sing.