tenant13
Full time employment: Posting here.
While I'm obviously not happy about losing money due to what's happening I can't help seeing all kinds opportunities in this crisis. One would be something I never thought about: capital losses.
I was a complete moron last fall and moved about $250k of cash to Chase because they were offering $2k bonus. It was the money I kept in high yield savings account in case of a sudden recession disaster, LOL. It would have last me 5 years. I further lost my mind by letting their "financial advisor" invest $150k in dividend stocks. I had enough sense to insist on keeping $100k in bonds, and I had to fight him on that. Anyway - the stocks while still producing dividends (for now) lost about $50k. So here's what I'm thinking:
Sell enough to generate 30k short term capital loss. That would give me 3k worth a year of tax write off for the next 10 years (https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0). Use the money from the sale to buy stocks that are currently "on sale" that I believe will do well: stuff like Disney, Tesla, JNJ etc (I already have tons of Apple - for years). Then aggressively convert tIRA to ROTH in this downturn so I can take advantage of the tax free rebound. Slow down conversions over the years to match the recovery.
Am I thinking correctly? Missing something? What do you think?
I was a complete moron last fall and moved about $250k of cash to Chase because they were offering $2k bonus. It was the money I kept in high yield savings account in case of a sudden recession disaster, LOL. It would have last me 5 years. I further lost my mind by letting their "financial advisor" invest $150k in dividend stocks. I had enough sense to insist on keeping $100k in bonds, and I had to fight him on that. Anyway - the stocks while still producing dividends (for now) lost about $50k. So here's what I'm thinking:
Sell enough to generate 30k short term capital loss. That would give me 3k worth a year of tax write off for the next 10 years (https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0). Use the money from the sale to buy stocks that are currently "on sale" that I believe will do well: stuff like Disney, Tesla, JNJ etc (I already have tons of Apple - for years). Then aggressively convert tIRA to ROTH in this downturn so I can take advantage of the tax free rebound. Slow down conversions over the years to match the recovery.
Am I thinking correctly? Missing something? What do you think?