Waiting at least until next week before contributing to my Roth, likely to add more VTIAX. Don’t want to catch the falling knife just yet.
Waiting at least until next week before contributing to my Roth, likely to add more VTIAX. Don’t want to catch the falling knife just yet.
Catching a falling knife is for market timers focused on the short-term. Converting to a Roth on the dips or adding to a well-balanced portfolio on the dips is actually a long-term strategy. Don’t let perfection be the enemy of the good.
I’m just rebalancing with new funds but would rather do it when things level off.
Waiting at least until next week before contributing to my Roth, likely to add more VTIAX. Don’t want to catch the falling knife just yet.
Catching a falling knife is for market timers focused on the short-term. Converting to a Roth on the dips or adding to a well-balanced portfolio on the dips is actually a long-term strategy. Don’t let perfection be the enemy of the good.
There might be some degree of market timing in my decision but my Roth only has VTIAX in it and I haven’t contributed this year yet. I don’t have a traditional IRA for doing a conversion. I’m just rebalancing with new funds but would rather do it when things level off.
I did put a couple K into my taxable this morning though… Look at me planning ahead – I actually transferred some money into my account last week for this reason!
I was thinking about buying VTIAX (total international stock market) in my taxable account, however i have no money in my MMF. Do you guys always keep money ready in your MMF in case such opportunity arises?
I always have cash around. 2000-2 and 2008 taught me that lesson.
I was thinking about buying VTIAX (total international stock market) in my taxable account, however i have no money in my MMF. Do you guys always keep money ready in your MMF in case such opportunity arises?
I always have cash around. 2000-2 and 2008 taught me that lesson.
Going to play the devil’s advocate here… isn’t this entire thread encouraging market timing? Wouldn’t a purist find this contradictory/hypocritical?
I was thinking about buying VTIAX (total international stock market) in my taxable account, however i have no money in my MMF. Do you guys always keep money ready in your MMF in case such opportunity arises?
I always have cash around. 2000-2 and 2008 taught me that lesson.
Going to play the devil’s advocate here… isn’t this entire thread encouraging market timing? Wouldn’t a purist find this contradictory/hypocritical?
You are right but that was why I clarified “market timers focused on the short term” in post #22138. The difference (imho) is that opportunistic buying when the market is down is a long-term strategy. For example, when I convert $20k to a Roth on a day when the market goes down 3%, I have no plan to sell when it goes back up. I just had the opportunity to convert long-term investments on a temporary drop. That’s my personal definition, so maybe I’m not a purist
All of my investments are aggregated for portfolio purposes. I just moved a fund with a balance of around $20k from my SIMPLE IRA to my Roth IRA. Should I, for some reason, decide to recharacterize, it’s quite easy to move the fund back. I have no plans to recharacterize, but that is how we do it for clients, too, in case they change their minds. That is, of course, unless they are doing a total conversion, as several did in 2010.
Fwiw, the next potential “known unknown” that I’m looking ahead to is the day after the 2016 election.
…is that not basically ALL investing?
All of my investments are aggregated for portfolio purposes. I just moved a fund with a balance of around $20k from my SIMPLE IRA to my Roth IRA. Should I, for some reason, decide to recharacterize, it’s quite easy to move the fund back. I have no plans to recharacterize, but that is how we do it for clients, too, in case they change their minds. That is, of course, unless they are doing a total conversion, as several did in 2010.
Fwiw, the next potential “known unknown” that I’m looking ahead to is the day after the 2016 election.
To make sense in top tax bracket + NY State tax what decline you need to have? 20-25% ? (paying taxes for roth conversion vs investing those money to taxable account?) Thanks.
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