Flying to Colorado tomorrow. Will listen to it on the flight.
OT: Stock and Investment Talk
- Thread starter RU-05
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@phs73rc77gsm83 - Interesting Vanguard article. I hope more companies adopt their model!
www.morningstar.com
Will Other Firms Adopt Vanguard’s Unique ETF/Mutual Fund Structure?
There’s more to consider than just the tax benefits.
Seems like a financial version of Barstool Sports. Besides, they're all "follicly challenged."
I kid.... I kid....
More ammo for the Fed:
Most are bald, but it's a great discussion with plenty of charts and things to consider. Fun weekly show!
Very good article. I think you and I discussed many of these points in the past; a great innovation by Vanguard. As mentioned in the article, the patent expires this year.@phs73rc77gsm83 - Interesting Vanguard article. I hope more companies adopt their model!
Will Other Firms Adopt Vanguard’s Unique ETF/Mutual Fund Structure?
There’s more to consider than just the tax benefits.
I would love to have more fund/etf options available. We have Vanguard Value in 4 accounts (2 retirement, 1 brokerage, and our 529). We use the fund version for 2 and the etf version for the other two.
So what exactly is a backdoor Roth IRA? I recently got into SCHD and VIG and in doing some reading some people say that people purchase these for IRA's. I don't think I qualify for a Roth IRA but is there an advantage of setting up a traditional IRA? Both investments our more then likely long term hold for me as I may even add to them. Could I go traditional IRA to a backdoor one? My understanding is that with IRA's I wouldn't pay taxes on the dividend gains. Not sure if this is correct or not.
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The Backdoor Roth is the 100% legal way to get around the income limit for Roth IRAs. My wife and I have been using these since the law was passed (during the GWB admin). The basic premise is that even though directly contributing to a Roth IRA has income limits, doing a Roth Conversion has no limit!
Behold the power of the Backdoor:
Backdoor Roth IRA: Definition, Rules and How To Open One - NerdWallet
A backdoor Roth IRA lets you convert a traditional IRA into a Roth IRA, which could save on taxes. Backdoor Roths are an option if your income is too high for a Roth IRA.
It sounds kinda easy. Just open a traditional IRA then convert it to a Roth it says. I use Etrade not sure if I can do this through them or not? I see there are limits on what people can put into IRA's $6000 a year. Does this mean every year you have to open a new IRA because of the limit? Apologies for all the questions as I am trying to learn the process.The Backdoor Roth is the 100% legal way to get around the income limit for Roth IRAs. My wife and I have been using these since the law was passed (during the GWB admin). The basic premise is that even though directly contributing to a Roth IRA has income limits, doing a Roth Conversion has no limit!
Behold the power of the Backdoor:
Backdoor Roth IRA: Definition, Rules and How To Open One - NerdWallet
A backdoor Roth IRA lets you convert a traditional IRA into a Roth IRA, which could save on taxes. Backdoor Roths are an option if your income is too high for a Roth IRA.www.nerdwallet.com
The IRA contribution limit is now $6,500 a year (per person). $7,500 if you turn 50 this year or older. I never did the paperwork via E-Trade. I'm sure you can do it. You don't need to open a new Roth IRA every year. We have been using the same account since we began (one for me and one for my wife).
I'm sure E-Trade customer service can walk you through it.
Also, no worries about the questions. That's what this thread is for! :)
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anon_0k9zlfz6lz9oy
Guest
The data from philly fed doesnt look great for the economy. So much kinda bad data when you dig. But surface data looks good for economy. Its odd
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The data from philly fed doesnt look great for the economy. So much kinda bad data when you dig. But surface data looks good for economy. Its odd
This likely a localized issue caused by the Philadelphia Eagles
Is TGT a short? It’s gotten way ahead of WMT from a chart perspective and WMT issued cautious guidance.
TGT earnings on the 28th.
TGT earnings on the 28th.
The economy is rolling along fine. You are seeing companies sandbag on forecasts so they can beat the next Q. This was the norm prior to COVID.
Gotta buy all meaningful dips moving forward. This is likely the last gasp for the bears and their inflation narrative. We all see the data and those educated understand where the math is heading. Enjoy! :)
The Fed Is Likely Leading The S&P 500 Into A Crushing Zone (NYSEARCA:SPY)
S&P 500 has had an explosive year so far, rebounding and already up more than 6% YTD. See why we caution investors buying into this S&P 500 rally so far.
seekingalpha.com
Well you’d think WMT and HD won’t portend strong guidance and/or earnings for TGT, LOW and maybe COST too.
Be careful. That hasn’t been the case the last few quarters (as in, all reporting similar earnings). Also, expectations have been lowered now.
If there’s a cut in discretionary spending, TGT is more likely to feel it than WMT. IIRC WMT has quite a bit higher percentage of revenue from groceries than TGT which is somewhat helpful.
HD has been a strong retail name for years so if they’re having issues I find it hard to believe LOW won’t be as well.
The two ends of the barbell might weather things a bit better possibly. Dollar stores for people downgrading and slightly higher end because people can withstand the inflation pressures a little better like say COST. I wouldn’t bank on it though. I think a lot of retail sector will be under pressure but we’ll see.
WMT gets a lot of groceries foot traffic. TGT is a bit more discretionary.
Consumer debt now at highest rate since the Great Recession, hitting $16.9 trillion. Loan delinquencies rising. Not a good sign for what's ahead. '23 will prove to be a very tough year. Fed terminal rate likely to hit 6% and stay there into '24.
You will not pay taxes on the dividends or capital gains in the account. Only pay taxes when you make a distribution from a traditional IRA.
I'm not taking sides..... tho I remain cautious (tho always optimistic of the long-run)...
it is a curious time....
it is a curious time....
Debt is only bad if it is no longer being serviced. For home loan delinquencies you'd have to figure out if this is a byproduct of the tremendous volume in home sale transactions the last 3 years or something else. If delinquencies rose proportionally to the volume of home sales, it's statistically insignificant. If delinquency volume is outpacing sale volume, it would be statistically significant.
Generally, seems to be a big bifurcation in economic class...... upper incomes still sitting on epic levels of pandemic savings...... lower income have burned through it.. and are loading-up on debt...
none of that is unusual in itself... but the magnitude of the delta is historic....
some say disinflation has hit...... others disagree. If the latter is true, we ain't done with the pain...
I think WMT has become the biggest "grocery" store in the nation.....or at least close to it.
Well, it is a tick above 50, which is the threshold for expansion/contraction. Just another inconclusive data point.
Disinflation is here and baked into the next 5-6 upcoming CPI prints. Housing went deflationary 4-5 months ago, but the lag in CPI housing data is brutal. Learn the math.
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anon_0k9zlfz6lz9oy
Guest
home loan delinquencies set a record for all time lows to end 2022
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anon_0k9zlfz6lz9oy
Guest
OER is going to take a baseball bat to inflations knees over the next 12 months
+1 - Massive baseball ball. Housing/rent is the only thing holding MoM CPI up. The lag is 9-12 months and we are 5-6 months into the math. Plan accordingly!
And for a frame of reference, housing/rent makes up 30-40% of CPI (headline and core).
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Lots of good info from other posters who answered you, here is another good summary.
Topic No. 451 Individual Retirement Arrangements (IRAs) | Internal Revenue Service
An individual retirement arrangement (IRA) is a tax-favored personal savings arrangement, which allows you to set aside money for retirement. There are several different types of IRAs, including traditional IRAs and Roth IRAs. You can set up an IRA with a bank, insurance company, or other...
don't worry, I'll be here in June.
and you can declare how right you were......
just so we're clear -- CPI will be 2% or less at that point, right?
FYI - great chart to think about. Shelter has been negative for 4-5 months. When will it show up in the CPI math? I just told you.
Shelter inflation = the last mathematical shoe to drop. Plan accordingly! :)
