The Stock Market and Investing

kyfdx

houdini1 said:

kyfdx said:

Recent trades..

Sold some CSCO, replaced with MRK (IRA.. no taxes)
Sold BBT preferred stock. I was in it for the 5.65% dividend. Bought it at par, a year ago. But, it's up 9% since then. Didn't make sense to hold it, and watch it drop back down to par at first call in 3.5 years. 14.7% return in one year.. on an income stock. (yay)

Nothing much else lately, but with the big run-up, I've got an itchy trigger finger.

Be patient and save that itch trigger finger for the next "correction".

That's why I want to take profits now.. it's only itchy on the sell side, mostly. Have to have some powder dry for the next time.

houdini1

kyfdx said:

houdini1 said:

kyfdx said:

Recent trades..

Sold some CSCO, replaced with MRK (IRA.. no taxes)
Sold BBT preferred stock. I was in it for the 5.65% dividend. Bought it at par, a year ago. But, it's up 9% since then. Didn't make sense to hold it, and watch it drop back down to par at first call in 3.5 years. 14.7% return in one year.. on an income stock. (yay)

Nothing much else lately, but with the big run-up, I've got an itchy trigger finger.

Be patient and save that itch trigger finger for the next "correction".

That's why I want to take profits now.. it's only itchy on the sell side, mostly. Have to have some powder dry for the next time.

Ah, OK. Thought you meant itching to buy !

tlong

We definitely seem overdue for a correction. I doubt we will miss one during the current administration. We are likely to see a normal economic cycle bear market. The president is always blamed/given credit for the economy, when IMHO his impact is limited and quite delayed (no matter who he/she is).

berri

Seems like it is seldom the clown that gets stuck - waits till the replacement to hit. But you're right, the blame or credit is usually misplaced when it happens.

fintail

Lagging indicators are also something most don't seem to understand, or want to examine.

kyfdx

Today:
Sold FDX
Bought SWKS

isellhondas

SWKS ? Is that Stanley Works?

kyfdx

Nope... I think they are SWK?

Skyworks Solutions

Chips/technology for mobile phones

houdini1

kyfdx said:

Today:
Sold FDX
Bought SWKS

Looks like you made a ton of money on FDX, 2017 taxes be damned !!

houdini1

kyfdx said:

Today:
Sold FDX
Bought SWKS

From their past performance, looks like you made a ton of money on FDX, 2017 taxes be damned !!

kyfdx

houdini1 said:

kyfdx said:

Today:
Sold FDX
Bought SWKS

From their past performance, looks like you made a ton of money on FDX, 2017 taxes be damned !!

I've had it a long, long time.... Actually, it was donated, so get a tax deduction, and avoid the capital gains tax. Win-Win!!

isellhondas

kyfdx said:

Nope... I think they are SWK?

Skyworks Solutions

Chips/technology for mobile phones

Yeah, I worked for SWK for almost 20 years. They are now Stanley/Black and Decker. They merged with Black and Decker for some reason I can't understand. B&D used to be a respected brand that made decent product. Not anymore. I thought they may have changed their symbol.

carnaught

Gosh with this rollercoaster ride, I'm glad I'm not currently involved.

cdnpinhead

Ooh -- timing the market. That works every time it's tried.

fintail

As a private sector worker without a trust fund, I have to fund my own retirement, should we all (and myself) make it that far, so I am in it to sit tight and ride it out. A correction has been overdue, if it happens now, that's how it goes. Could be worse for me anyway, hopefully nobody was going to cash out tomorrow.

berri

The combined drop is a little over half way to a big correction (20%). Not sure that will occur right now though. In you situation Fin, you are reinvesting dividends and making contributions on sale, so you have the right idea. I think if you need the cash in 5 or 6 years you might want to lighten up a bit, but 10-12 years, let it ride. Don't think it is a bargain to buy in beyond that yet though. Personally, I'd be a little more cautious on bonds right now. But that's just my take on it all.

kyfdx

The 2008-2009 selloff was the best thing to happen for me, long term. I was making regular 401K contributions at lower prices, and increased my percentage, to take advantage of it.

I wish I’d been braver.

If you had retired in 2007, I’m sure it was stressful.

ab348

kyfdx said:

If you had retired in 2007, I’m sure it was stressful.

A friend of mine made all the wrong moves around that time. He had long been living well on his inheritance and investments but had little experience managing them himself. I don't know who if anyone was advising him but in '08 he sold everything off at about the lowest point possible. Now he is constantly stressed about his financial situation and has had to work again part-time to help the cause.

I got out of about 2/3rds of my market-based stuff on Friday (actually had planned to do it the week prior and got distracted, dammit!) and really didn't lose much. Just sitting on it for now until things settle.

kyfdx

I'm recently semi-retired.

No telling how long I have, but I have to plan for 30-35 years. Which is about how long I've been investing. So, only halfway through it. Just staying the course.

I play around the edges for fun.

gagrice

I think the correction may be over. My VLKAY (VW) stock is headed back up. Have no reason to sell off, Still $20 per share in positive territory from my initial purchase at $23** per share. Still some profit taking.

Mr_Shiftright

berri said:

those machines are magnets for coins no matter what

That's why they give you free drinks!

Mr_Shiftright

berri said:

those machines are magnets for coins no matter what

That's why they give you free drinks!

gagrice said:

I think the correction may be over. My VLKAY (VW) stock is headed back up. Have no reason to sell off, Still $20 per share in positive territory from my initial purchase at $23** per share. Still some profit taking.

Its hard to say what dips like this really mean. Is the market paying attention to the global economy all of a sudden? Or what's going on in Washington? Or is it "well it's bound to go down so let's get it started!"

I'm putting my money into frog pelts.

berri

Seems like most crashes start with the federal reserve in the past few decades. Everyone is focusing on stocks, but bonds are at artificially low rates, particularly in Europe. Maybe its the new reality, or...

Mr_Shiftright

Well the Feds aren't going to pour any more in, and interest rates will no doubt go up--add that to the tax cuts and you're playing a dangerous game here IMO.

houdini1

I think I've got this market thing figured out !

kyfdx

houdini1 said:

I think I've got this market thing figured out !

lol... yeah, me too.

ab348

berri said:

Seems like most crashes start with the federal reserve in the past few decades. Everyone is focusing on stocks, but bonds are at artificially low rates, particularly in Europe. Maybe its the new reality, or...

Here in Canada the chatter is that interest rates are going up (already have actually), driving bond values down and making it more expensive to borrow money, both things the market does not like. But that would not explain the massive drops in the Dow.

berri

The markets are hard to figure these days with shorts, quants, and synthetics. Best you can do is stick with investment basics or use mutual/ETF's and diversify. As for the federal reserve, like so many things in life they are good at going in, but often have timing issues getting out.

Sandman6472

Just holding tight and praying things work out in our favor. Semi-retired also and working about 25 hours/week which works nicely. Letting the retirement accounts grow and banking most of the weekly Hertz pay. Luckily we live below our means and have the government pension in the account on the first of the month. Having no mortgage is also part of the plan.
Looking into relocating within the next year or two with plan being to buy a house around the $250K range and hoping to get high $300's for current place. Told wife would love to sell, buy new again while putting $100K in the bank. The area the kids and we are looking gives us our plan which is great. We've had new construction on both places we've owned and it works for us. Only difference is the kids are going in August while we'll do it around eighteen months from now, give or take. If I could go sooner, would but we just might buy before and then go. Houses here in our price range go quickly and would have no issue selling early and renting a small place for a time. Been here almost 31 years and it's definitely time to go!!

The Sandman

gagrice

sandman_6472 said:

Just holding tight and praying things work out in our favor. Semi-retired also and working about 25 hours/week which works nicely. Letting the retirement accounts grow and banking most of the weekly Hertz pay. Luckily we live below our means and have the government pension in the account on the first of the month. Having no mortgage is also part of the plan.
Looking into relocating within the next year or two with plan being to buy a house around the $250K range and hoping to get high $300's for current place. Told wife would love to sell, buy new again while putting $100K in the bank. The area the kids and we are looking gives us our plan which is great. We've had new construction on both places we've owned and it works for us. Only difference is the kids are going in August while we'll do it around eighteen months from now, give or take. If I could go sooner, would but we just might buy before and then go. Houses here in our price range go quickly and would have no issue selling early and renting a small place for a time. Been here almost 31 years and it's definitely time to go!!

The Sandman

Are you staying in FL? We just left CA for good and are living in Pahrump NV. You can buy a very nice home in the $250k range. We paid $330k for 3300 sq ft and a four car garage. On a golf course with no HOA fees. Utilities are Cheap here compared to most places we looked. A beautiful 50 mile drive to Las Vegas through Red Rock Canyon. Comes out right at Costco and all the shopping a person could ever want. No traffic no freeways and only 3 stop lights in our little paradise with less than 40k people. We are living a higher lifestyle for about half what it cost in San Diego. Our favorite place for patio dining.

laurasdada

gagrice said:

sandman_6472 said:

Just holding tight and praying things work out in our favor. Semi-retired also and working about 25 hours/week which works nicely. Letting the retirement accounts grow and banking most of the weekly Hertz pay. Luckily we live below our means and have the government pension in the account on the first of the month. Having no mortgage is also part of the plan.
Looking into relocating within the next year or two with plan being to buy a house around the $250K range and hoping to get high $300's for current place. Told wife would love to sell, buy new again while putting $100K in the bank. The area the kids and we are looking gives us our plan which is great. We've had new construction on both places we've owned and it works for us. Only difference is the kids are going in August while we'll do it around eighteen months from now, give or take. If I could go sooner, would but we just might buy before and then go. Houses here in our price range go quickly and would have no issue selling early and renting a small place for a time. Been here almost 31 years and it's definitely time to go!!

The Sandman

Are you staying in FL? We just left CA for good and are living in Pahrump NV. You can buy a very nice home in the $250k range. We paid $330k for 3300 sq ft and a four car garage. On a golf course with no HOA fees. Utilities are Cheap here compared to most places we looked. A beautiful 50 mile drive to Las Vegas through Red Rock Canyon. Comes out right at Costco and all the shopping a person could ever want. No traffic no freeways and only 3 stop lights in our little paradise with less than 40k people. We are living a higher lifestyle for about half what it cost in San Diego. Our favorite place for patio dining.

That sounds pretty darn nice. A few years from retirement and love New England. But, something to consider with family in LA (and not enough $ to live in LA!).

Sandman6472

As much as I'd love to leave Florida, the girls are too important to us to leave them. Our son and his wife live in Chicago so living there is out, just too cold. The oldest is going to St. Cloud, near Orlando and know the middle will follow her sis within a year. Our timetable is another two years here, till the end of 2019 when I plan to retire again but the wife wants the west coast of Florida it seems, but I want to be closer to where our girls are. Time will tell but still want to be able to bank at least $100K after we sell and then buy again. I will never do another mortgage unless we buy before we move and then, it'd be just for a year or two tops. I hate owing anyone even a dime, prefer to live below our means and buy stuff when we have the means to pay cash!

The Sandman

Michaell

Do annuities earn interest? We got notification today that my MIL had an annuity and my wife and her sister are beneficiaries. We can choose to continue the payout, if we want.

kyfdx

Michaell said:

Do annuities earn interest? We got notification today that my MIL had an annuity and my wife and her sister are beneficiaries. We can choose to continue the payout, if we want.

Doesn't sound like the kind of annuity that ends when you die (like a pension). Insurance companies will do almost anything to keep you from removing money from their control. You really need a 3rd party adviser to take a look at it for you. The insurance company cannot be depended on to give you impartial advice.

gagrice

kyfdx said:

Michaell said:

Do annuities earn interest? We got notification today that my MIL had an annuity and my wife and her sister are beneficiaries. We can choose to continue the payout, if we want.

Doesn't sound like the kind of annuity that ends when you die (like a pension). Insurance companies will do almost anything to keep you from removing money from their control. You really need a 3rd party adviser to take a look at it for you. The insurance company cannot be depended on to give you impartial advice.

Good advice. Find a financial adviser that understands annuities. We have two that pay 5% with a guaranteed death benefit. Very difficult to maneuver with them. If they keep paying when they are losing money it comes out of the principal. So that means you will not be able to cash out without taking a big hit. It will not hurt the death benefit. Bottom line not all annuities are the same. You need someone to negotiate them.

Michaell

@kyfdx @gagrice - thanks.

We got paperwork from them on how to proceed. The options boil down to:

1. Cash out - will owe taxes on full disbursement
2. Delay lump sum payment - up to 5 years from date of MIL's passing, with regular disbursements, then a final payout after the 5 years are up
3. Continue Non-Qualified Stretch - we can continue with our disbursements, on our schedule and amount, and identify a beneficiary should my wife pass
4. Annuitization / Income Option - the description on this is vague, and it is suggested we call the company for more information

Guess I'll see if I can reach out to a financial advisor and seek more advice.

We aren't talking about a lot of money here, either - under $15K

kyfdx

Michaell said:

@kyfdx @gagrice - thanks.

We got paperwork from them on how to proceed. The options boil down to:

1. Cash out - will owe taxes on full disbursement
2. Delay lump sum payment - up to 5 years from date of MIL's passing, with regular disbursements, then a final payout after the 5 years are up
3. Continue Non-Qualified Stretch - we can continue with our disbursements, on our schedule and amount, and identify a beneficiary should my wife pass
4. Annuitization / Income Option - the description on this is vague, and it is suggested we call the company for more information

Guess I'll see if I can reach out to a financial advisor and seek more advice.

We aren't talking about a lot of money here, either - under $15K

For that amount of money, I wouldn't worry about the income tax hit, so much. Just whatever gets you the most cash. So, if you can cash out, without a penalty, that's the way I would go. No point in maintaining a relationship with another insurance company.

Michaell

kyfdx said:

Michaell said:

@kyfdx @gagrice - thanks.

We got paperwork from them on how to proceed. The options boil down to:

1. Cash out - will owe taxes on full disbursement
2. Delay lump sum payment - up to 5 years from date of MIL's passing, with regular disbursements, then a final payout after the 5 years are up
3. Continue Non-Qualified Stretch - we can continue with our disbursements, on our schedule and amount, and identify a beneficiary should my wife pass
4. Annuitization / Income Option - the description on this is vague, and it is suggested we call the company for more information

Guess I'll see if I can reach out to a financial advisor and seek more advice.

We aren't talking about a lot of money here, either - under $15K

For that amount of money, I wouldn't worry about the income tax hit, so much. Just whatever gets you the most cash. So, if you can cash out, without a penalty, that's the way I would go. No point in maintaining a relationship with another insurance company.

No penalties beyond the tax obligation.

ab348

What's the consensus on the market, did it bottom out last week and is now in recovery?

kyfdx

ab348 said:

What's the consensus on the market, did it bottom out last week and is now in recovery?

Yes.. or, maybe no.

Sandman6472

My mom had an annuity, a couple actually and when she died, one of them had the money sent to my dad's family trust. The other was to go to my two older siblings and that's what happened. Through some really weird events, I ended up being the main executor about 25 years after my dad passed. Best to just cash them out and split the proceeds, at least that's what our financial guy told us.

The Sandman

gagrice

My wife had a great Uncle with a weird sense of humor. She has gotten $15 a year for decades. Always get the check and 1099 a month late. About 20 heirs involved and it keeps on giving every year. So if there are a lot of heirs it is best to divide and end it there. Unless it is a Kennedy sized trust that is now much larger than when old Joe died.

Michaell

gagrice said:

My wife had a great Uncle with a weird sense of humor. She has gotten $15 a year for decades. Always get the check and 1099 a month late. About 20 heirs involved and it keeps on giving every year. So if there are a lot of heirs it is best to divide and end it there. Unless it is a Kennedy sized trust that is now much larger than when old Joe died.

Nope, nothing that large, I'm afraid.

Wife is mulling over her options.

kyfdx

Michaell said:

gagrice said:

My wife had a great Uncle with a weird sense of humor. She has gotten $15 a year for decades. Always get the check and 1099 a month late. About 20 heirs involved and it keeps on giving every year. So if there are a lot of heirs it is best to divide and end it there. Unless it is a Kennedy sized trust that is now much larger than when old Joe died.

Nope, nothing that large, I'm afraid.

Wife is mulling over her options.

I think she needs a new car!

Michaell

kyfdx said:

Michaell said:

gagrice said:

My wife had a great Uncle with a weird sense of humor. She has gotten $15 a year for decades. Always get the check and 1099 a month late. About 20 heirs involved and it keeps on giving every year. So if there are a lot of heirs it is best to divide and end it there. Unless it is a Kennedy sized trust that is now much larger than when old Joe died.

Nope, nothing that large, I'm afraid.

Wife is mulling over her options.

I think she needs a new car!

Wrong thread for that ..... and, she loves her Outback. 3 years and just over 24,000 miles on it.

isellhondas

Good answer!

imidazol97

What do posters think about the market and prospects for money-making now? The Dow has formed a "W" but a discussion indicated that a typical pullback had two or three "W's" in the pattern.

kyfdx

imidazol97 said:

What do posters think about the market and prospects for money-making now? The Dow has formed a "W" but a discussion indicated that a typical pullback had two or three "W's" in the pattern.

Over the next ten years, you'll make money in the market.. ;-)

I'm not a big fan of technical analysis, and drawing lines. Plus, the Dow is price-weighted and not indicative of the wider indexes.

circlew

Continue long term hold.

houdini1

Michaell said:

kyfdx said:

Michaell said:

@kyfdx @gagrice - thanks.

We got paperwork from them on how to proceed. The options boil down to:

1. Cash out - will owe taxes on full disbursement
2. Delay lump sum payment - up to 5 years from date of MIL's passing, with regular disbursements, then a final payout after the 5 years are up
3. Continue Non-Qualified Stretch - we can continue with our disbursements, on our schedule and amount, and identify a beneficiary should my wife pass
4. Annuitization / Income Option - the description on this is vague, and it is suggested we call the company for more information

Guess I'll see if I can reach out to a financial advisor and seek more advice.

We aren't talking about a lot of money here, either - under $15K

For that amount of money, I wouldn't worry about the income tax hit, so much. Just whatever gets you the most cash. So, if you can cash out, without a penalty, that's the way I would go. No point in maintaining a relationship with another insurance company.

No penalties beyond the tax obligation.

Wouldn't that be tax free if considered part of an inheritance, at least federal, state may want their pound of flesh.