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  • #16




    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.
    Click to expand...


    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.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #17







      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.
      Click to expand…


      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.
      Click to expand...


      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.

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      • #18


        I’m just rebalancing with new funds but would rather do it when things level off.
        Click to expand...


        How do you know that except for looking in the rear-view mirror?
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

        Comment


        • #19










          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.
          Click to expand…


          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.
          Click to expand…


          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.
          Click to expand...


          What does that mean? You mean when its higher in price or hopefully consolidated and about to go back up?

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          • #20




             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!
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            I did too... transferred some money earlier in the week, in anticipation of Brexit. But these things are hard to do when work/home/life gets really busy and one may completely miss a nice buying opportunity. It doesn't help that the market is open only from 9:30-4:30... a doc's work often begins before that and ends way later.

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            • #21
              Agree that's often a problem and why among more general reasons I just have my money auto-invested on a schedule. I do sometimes put extra in when the market drops using the Vanguard app on my phone during lunch though - that works pretty well for me. Of course I usually do lunch out of the office.....

               

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              • #22







                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?
                Click to expand…


                I always have cash around. 2000-2 and 2008 taught me that lesson.
                Click to expand...


                Going to play the devil's advocate here... isn't this entire thread encouraging market timing? Wouldn't a purist find this contradictory/hypocritical?

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                • #23










                  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?
                  Click to expand…


                  I always have cash around. 2000-2 and 2008 taught me that lesson.
                  Click to expand…


                  Going to play the devil’s advocate here… isn’t this entire thread encouraging market timing? Wouldn’t a purist find this contradictory/hypocritical?
                  Click to expand...


                  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 :-)
                  Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                  Comment


                  • #24













                    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?
                    Click to expand…


                    I always have cash around. 2000-2 and 2008 taught me that lesson.
                    Click to expand…


                    Going to play the devil’s advocate here… isn’t this entire thread encouraging market timing? Wouldn’t a purist find this contradictory/hypocritical?
                    Click to expand…


                    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 ?
                    Click to expand...


                    How does it work? do you transfer 20k and then rebalance? or assign specific(investments that are down) mutual fund shares  into roth portion of account? Thanks.

                    Comment


                    • #25
                      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.
                      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                      Comment


                      • #26




                        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.
                        Click to expand...


                        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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                        • #27
                          I make large contributions on July 1 because that's when my ASP gets paid (military, what up), with big payroll deduction to the TSP and then cash into the IRA...so hopefully the lull lasts long enough for the payroll part to fall in!

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                          • #28
                            ...is that not basically ALL investing?

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                            • #29




                              …is that not basically ALL investing?
                              Click to expand...


                              Not in the least, but that is how most people view it.
                              Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                              Comment


                              • #30







                                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.
                                Click to expand…


                                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.
                                Click to expand...


                                I'll look when I'm at work. Lazy day today, going to babysit grandkids in Nashville for a few days. In the meantime, I have a great example in my Guide for Established Attendings, pg 11. It will open your eyes to this strategy. Will get you the answer when I get back if someone else hasn't done so.
                                Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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