I usually fund the new year in January. New year, new funding, adjusted for new year plans. Sorta, kinda, based on last year, say 80%. Not many surprises tax wise.
I'm using $19k of saved up HSA receipts.
I agree with several others who stated they are not good at selling. I am the same way. In hindsight, what I could have gained by not selling far surpassed what i lost by holding on for "too long".
But let’s say you’re really smart (or lucky) and happen to pick a fair share of the winners. You face another big hurdle. You must hold on to your winners and not sell them prematurely. Unfortunately, this is easier said than done. Most investors display a strong tendency to sell their winners and ride their losers. This has been termed the disposition effect, first described by behavioral economists Hersh Shefrin and Meir Statman.
The disposition effect can be explained by mental accounting and loss aversion. When an investor buys a stock, a mental account is subconsciously created. The initial investment or cost basis is recorded in this account. If the position is subsequently sold for less than its cost basis, the mental account is closed at a loss. Since losses are painful—particularly to our egos—investors do everything in their power to avoid this from happening, hence the tendency for investors to cling to their losers and even double down on them.
I am seriously thinking about cashing out all investments and staying away from investing going forward...
you can get to a point where your investments are putting too much at risk for your own good....
How to know when to take a profit
I am seriously thinking about cashing out all investments and staying away from investing going forward...
you can get to a point where your investments are putting too much at risk for your own good....
right now the medicare IRMAA is $182K for couples.. and I don't plan on going over that amount yearly and what they adjust for in the future... so thats my target draw from my retirement funding instruments...
So you just take your accumulated fundings and divide that number by the $182K IRMAA and that tells you pretty much how long your funds are going to last... if the number comes up that its way past any date you or the spouse would live to .. then why put your funds at risk in an investment when you have more than enough... just a thought right now... but it sure is an option to take seriously, it may be time for the ultimate cash out
Yes, but that also assumes your investments keep up with inflation, and that has historically required some equities over the long run.
-ERD50
I'm sure when you take inflation into consideration then the medicare irmma limit will go up with inflation... so during those times I guess I get a raise
I don't understand why your goal is to stay under IRMAA penalty. I just looked at the charts yesterday and figure that my husband will be in tier 3 and tier 4 for the next couple of years. Higher tier means we are having higher income. We hate to pay the IRMAA penalty but we won't say no to more money.
One year I had forgotten about the fact that medicare looks at your income starting when you turn 63 and then when they put you on medicare at 65 you get to pay those extra monthly fee's.... so my first year on medicare my monthly bill went from $148.45 to over $544 per month/ per person.... so when you retire and take funds out from your retirement instruments you get to pay income taxes on those draws... you also get to pay taxes on your SS check up to 85%... so when you end up paying extra for medicare you also pay extra taxes out of the SS checks and of course the taxes on income.... yep, you can take out as much money as you want... but the more you take out the more you end up giving them. to the point your giving your SS back to them... and as you know medicare is a single person healthcare option... so when you add in two people paying the extra medicare costs then it adds up pretty quick for a year of premiums... I just did the math... its like your just throwing away $9500 per year for nothing in return... I like more money too but I'm not going to just give away $9500 every year for nothing...
not to mention that the extra $9500 to pay for all of this needs to come out of your retirement funds and so that adds even more income taxes... so its actually more than you just throwing away $9500... its probably more to the tune of giving away $12,000 might as well just burn $100 every morning when you wake up... its only money
Sell it just before it drops in value.
+1
Then buy it again once it reaches bottom, just before it starts back up.
See? Now that is why I hang out here. I learn something new every day.“Market timing is speculating and it rarely, if ever, pays off.” - Peter Lynch
“Market timing is speculating and it rarely, if ever, pays off.” - Peter Lynch
Yet, Peter Lynch was a stock picker, not an indexer. This means that he had to sell and buy stocks. Obviously, he had a system to decide when and what to buy and sell.
Even somebody like Buffett who said that he preferred to hold a stock forever still sold a stock and moved on when he no longer liked its prospect.
So, is selling a stock that may be on a catastrophic decline "market timing"?
How about a stock that has been bid up sky high? Do you hold, waiting for it to go even higher to the moon, like the Reddit crowd cheering one another to do with their meme stock?
Vanguard Energy Index Fund Admiral Shares (VENAX) has a 10 year performance of less than 1%/year.Thanks for everyone's input. I exchanged Pacific Index for a Energy Fund.