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Will you change your portfolio for "fiscal cliff"
Old 11-18-2012, 02:54 PM   #1
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Will you change your portfolio for "fiscal cliff"

I have been reading conflicting reports on investing for the fiscal cliff. Here is one article.....
Retiring on the edge of the fiscal cliff - Robert Powell's Retirement Portfolio - MarketWatch.

Are you making any changes? I did put an extra $20,000. in my money market.
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Old 11-18-2012, 05:57 PM   #2
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Only thing I've done in preparation of "fiscal cliff", if it happens, is to harvest some long term cap gains to lock in a 0% tax rate. Continuing to do Roth IRA conversions to use up any remaining 15% tax bracket. And put in stop orders if my dividend players take a sudden drop in value. 'Bout it.
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Old 11-18-2012, 06:22 PM   #3
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I piled up cash earlier this year, mostly based on my view of valuations. I have now started buying a few things i thnk are too cheap. Other than that, I have ignored the Washington circus.
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Old 11-18-2012, 06:26 PM   #4
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I piled up cash earlier this year, mostly based on my view of valuations. I have now started buying a few things i thnk are too cheap. Other than that, I have ignored the Washington circus.
Same for me.
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Old 11-18-2012, 06:37 PM   #5
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Originally Posted by brewer12345 View Post
I piled up cash earlier this year, mostly based on my view of valuations. I have now started buying a few things i thnk are too cheap. Other than that, I have ignored the Washington circus.
That sounds like good advice regardless of a fiscal cliff or a valley or a ski jump...
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Old 11-18-2012, 07:21 PM   #6
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Nope. There's no fiscal "cliff" to begin with, it's self imposed and they can push it back just like they've skirted other (media hyped) deadlines in the past. Remember the debt ceiling and super committee imperatives? Yeah right. They'll need to come to grips with the debt/deficits sooner or later, but as for any actual date cliff, hogwash...
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Old 11-18-2012, 07:39 PM   #7
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I liquidated some equities a while back so I have most of next year's cash already out. Hopefully, things will normalize by mid year. Or not.
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Old 11-18-2012, 07:49 PM   #8
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We also cashed in some long term gains to lock in a 0% tax. That resulted in us having 3 years of cash (one full year of which will be "pulled" for 2013) instead of 2, but we are pre- 59.5 for a few years yet, and will use that cash in year 3. Given the environment, we are comfortable with this.
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Old 11-18-2012, 08:24 PM   #9
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Preparing to rebalance (it is the end of an election year), I sold some equities. Since it took several days for the cash to appear in the MM account, I started to think that I will wait a little while to see what happens. There is a 50% chance there may be a buying opportunity coming up. I haven't had this much cash on hand for a long time. The worst thing that can happen is that my target equities go up. After this year's run-up, that would not feel too bad.

Still targeting 100% equities, 50/50 US/non-US.
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Old 11-18-2012, 08:46 PM   #10
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Old 11-18-2012, 11:07 PM   #11
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Old 11-18-2012, 11:44 PM   #12
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Quote:
Originally Posted by RE2Boys View Post
Only thing I've done in preparation of "fiscal cliff", if it happens, is to harvest some long term cap gains to lock in a 0% tax rate. Continuing to do Roth IRA conversions to use up any remaining 15% tax bracket. ....
+1 All I am doing is harvest long term gains to the extent that I can pay 0% tax and will reinvest and effectively just increase my cost basis at no additional cost and reduce future gains (compared to doing nothing). That, and normal rebalancing to my AA which includes a 6% cash bucket (~ 2 years expenses) and the rest is 60 stock/40 bonds; so effectively 6/56/38.
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Old 11-19-2012, 09:55 PM   #13
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I agree with most on here that it's not a big deal. It's time to do your tax planning; only make trades that are part of smart tax plan.
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Old 11-21-2012, 06:45 AM   #14
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Old 11-21-2012, 07:26 AM   #15
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No. More concerned about getting the asset allocation right as I head into retirement
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Old 11-21-2012, 07:41 AM   #16
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For the last 2-3 months I have been investing all my 401k contributions and match into the money market option. I am doing this in anticipation of a market correction around the end of the year at which time I hope to buy stocks at a discount. I thought it a better strategy for now, than dollar cost averaging in for the rest of the year. Didn't touch the vast majority of my assets though.

I am contemplating whether to cash in some more company stock options before year end. Any more income will drive me up another tax bracket but then again, I also expect my taxes to rise next year. I really don't need to the money right now though and my company stock has vastly outperformed the market (up 100% in the last year). I am torn between taking profits and leaving it alone as I expect my company to still outperform the market in the next few years.
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Old 11-21-2012, 09:35 AM   #17
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I'll follow the insiders:
http://www.marketwatch.com/m/story/i...&allPages=True

This probably just adds more conflicting data, but the article is interesting.

I wonder if insiders carried out their strategy earlier in the year.
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Old 11-21-2012, 10:02 AM   #18
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I'll follow the insiders:
MarketWatch.com Mobile

This probably just adds more conflicting data, but the article is interesting.

I wonder if insiders carried out their strategy earlier in the year.
That sum up my gut to a tee. I think the shoppers will tell the story of how things are going in the next week.

All of my past november moves have been spot on.

I finished my year long project to get to a balanced portfolio yesterday with the final buys. I had also bought in early summer, with sales in april and sept....now I will nap while my portfolio is in the oven....next rebalance is april 2013.
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Old 11-21-2012, 02:56 PM   #19
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No changes, but will continue to buy when something catches my eye.
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Old 11-21-2012, 07:21 PM   #20
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I know I have a lot to learn about finance. So, I don't understand how you can pay 0% tax on long term capital gains. Can you give me an example. Thanks
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