Mjedlin66 - Any advice on taxable account investements?

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dseery
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Mjedlin66 - Any advice on taxable account investements?

Post by dseery »

Dear Mjedlin66,

Many thanks for making the info on daily strategies so easily accessible to all of us on tspcalc.com!

You mentioned back in May that you invest in Apple, Tesla, Netflix, and Facebook in a taxable account. Given the success with the daily strategy, I would be very interested in knowing what other investments you are making in your taxable account.

About 5 years from retirement, I have been socking away as much as possible into TSP, and my Vanguard acct. I am currently using Vanguard ETFs to mimic the daily seasonal strategy, using these Vanguard ETFs:
S Fund= (VXF) (.08%)
C Fund = (VOO) (.05%)
I Fund: (VEA) (.09%)
F Fund: (BND) (.07%)

Am keen on knowing what other investments you are making.
Many thanks for your advice!
Following the leaders who weathered the storms...

mmmmmbeer
Posts: 917
Joined: Wed May 11, 2016 11:00 am

Re: Mjedlin66 - Any advice on taxable account investements?

Post by mmmmmbeer »

dseery wrote:Dear Mjedlin66,

Many thanks for making the info on daily strategies so easily accessible to all of us on tspcalc.com!

You mentioned back in May that you invest in Apple, Tesla, Netflix, and Facebook in a taxable account. Given the success with the daily strategy, I would be very interested in knowing what other investments you are making in your taxable account.

About 5 years from retirement, I have been socking away as much as possible into TSP, and my Vanguard acct. I am currently using Vanguard ETFs to mimic the daily seasonal strategy, using these Vanguard ETFs:
S Fund= (VXF) (.08%)
C Fund = (VOO) (.05%)
I Fund: (VEA) (.09%)
F Fund: (BND) (.07%)

Am keen on knowing what other investments you are making.
Many thanks for your advice!



How did your VFX fund treat you last week?
Last edited by mmmmmbeer on Mon Sep 04, 2017 2:34 pm, edited 1 time in total.
Those who 'abjure' violence can do so only because others are committing violence on their behalf.

John316
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by John316 »

Good advice here from many sources. If you use the seasonal strategy in your TSP why not diversify in your IRA? My wife and I have 2 Roth's in Vanguard, and we have a couple of core funds/etf's such as Small cap growth and Strategic value fund. The bulk is diversified with a small cap India fund and a tech/robotic/AI fund (botz). Being diversified can be a good thing when the markets turn. Buying the places/funds/stocks in the world that have lagged is a good strategy IMHO. My two cents worth. :)

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onerepmax
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by onerepmax »

John316 wrote:Good advice here from many sources. If you use the seasonal strategy in your TSP why not diversify in your IRA? My wife and I have 2 Roth's in Vanguard, and we have a couple of core funds/etf's such as Small cap growth and Strategic value fund. The bulk is diversified with a small cap India fund and a tech/robotic/AI fund (botz). Being diversified can be a good thing when the markets turn. Buying the places/funds/stocks in the world that have lagged is a good strategy IMHO. My two cents worth. :)


I agree that diversifying outside of TSP is a good idea, I'm currently mostly in T. Rowe Price Retirement 2025 Fund TRRHX in my TD Ameritrade Roth. (currently on their commission free list)

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mjedlin66
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by mjedlin66 »

You're asking the wrong guy.

I excel at making the most out of a paycheck through budgeting, and I just happen to be the guy who put together a tool for studying averages down to the day. I am not a stock wizard.

I own Amazon, Tesla, QQQ Index, Netflix, Facebook, and Apple just because I am a victim of branding. I habe heard of all of these companies (except QQQ) outside of the stock market. I patronize half of them myself.

I decided to buy these stocks just because all of these companies (+ QQQ) have done well over the last 5 years. That is the only reason. I figured if they have done so well for several years now, that maybe the trend isn't over. It is contrary to our natural instinct to assume that something that has been so good for so long is due for bad times.

I bought most of these in March or April of this year. I have gained something like 20% from them in that short time frame. Mostly from Tesla. I also own Ethereum. I have gained roughly 20% in ethereum in just two months.

All of this is luck.

If you want to follow a seasonal strategy with your stocks, I recommend you use your IRA. The IRA is exempt from capital gains taxes. Trading a taxable account in this manner would subject all of your earnings to short term capital gains tax.
Owner/creator of TSPcalc.com - "Know your numbers"

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TopNotch
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by TopNotch »

Hey dseery, I suggest you consider investing some into emerging markets (VWO) and international growth (VWIGX). These are my big winners this year. Especially VWIGX which is up over 34% ytd. :P
David Tepper - "There is a time to make money and a time to not lose money."

Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."

crondanet5
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by crondanet5 »

mj if he has extra cash to support a taxable investment account he should definitely pursue generating cash to use in retirement while allowing the tax deferred balances to grow until mandatory withdrawals are required. And after that he should continue to aggressively manage all accounts so each year the minimum required withdrawal is greater than the previous year. Never set and forget.

JustMe
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by JustMe »

Also check out Vanguard.

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ArrieS
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by ArrieS »

Why is everyone else commenting, including me? He clearly only asked Mjedlin66. We need to stay out of other peoples converations.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

mmmmmbeer
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by mmmmmbeer »

ArrieS wrote:Why is everyone else commenting, including me? He clearly only asked Mjedlin66. We need to stay out of other peoples converations.

Or you know.. they coulda PM'd. So I'd say it's a public "forum"? ;)
Those who 'abjure' violence can do so only because others are committing violence on their behalf.

crondanet5
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by crondanet5 »

mj backed out of the conversation. Some of us who have thought beyond TSP and IRAs have thoughts on the subject to help him.

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dseery
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Re: Mjedlin66 - Any advice on taxable account investements?

Post by dseery »

Thanks, I appreciate ALL the advice!
Following the leaders who weathered the storms...

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dseery
Posts: 28
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Any advice on taxable account investements?

Post by dseery »

Dear Mjedlin66, et al
Thanks everyone for the replies. An extra thanks for those who provided actual trading symbols.
I know it seems narrow, but trading ETFs using daily seasonal provides a safety net for those of us lacking investment know-how. I like avoiding the buy and hold approach, wherever possible. So I may continue with this strategy in our IRAs, as well as TSP, but not with our taxable account.
I did neglect to consider that using a seasonal strategy with our taxable Vanguard account would result in paying short term capital gains tax which is far greater than the long cap gains term tax. (For my husband and I, this would amount to an extra 13% of taxes owed on the earnings).
To make sure we are taxed at the long term capital gains rate, we will be looking to “buy and hold” for at least year for funds in the taxable account. As you advise, diversifying is good. As expensive as the FANG stocks are, they will likely remain industry giants in the years ahead, so I might get in one some of those. NASADAQ looks good. Artificial Intelligence (AI) does seem poised for big things in the years ahead; will look to get in on some BOTZ or ROBO. These also look appealing --emerging markets (VWO) and international growth (VWIGX).
Thanks again!
Diane
Following the leaders who weathered the storms...

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: Mjedlin66 - Any advice on taxable account investements?

Post by crondanet5 »

Do not confuse taxable short term transactions with IRA/TSP transactions (assuming you roll your entire TSP Account Balance into a rollover IRA. Those short term transactions do not have any tax consequence until actually withdrawn from the account. I believe there are too many peaks and valleys in stocks and ETFs to hold them for a long time. And remember, if you pay the tax-- regardless short term or long term-- the remainder is yours to do with whatever you choose. And you are helping to pay off the National debt. It's a good thing.

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ArrieS
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Re: Any advice on taxable account investements?

Post by ArrieS »

dseery wrote:As expensive as the FANG stocks are, they will likely remain industry giants in the years ahead, so I might get in one some of those. NASADAQ looks good. Artificial Intelligence (AI) does seem poised for big things in the years ahead; will look to get in on some BOTZ or ROBO. These also look appealing --emerging markets (VWO) and international growth (VWIGX).
Thanks again!
Diane


BRK.B It may not be sexy but Berkshire Hathaway has crushed the market. It has many good benefits.

First, it is diversified. It's basically an active managed ETF that you don't have an expense fee for. But unlike other actively managed ETFs it has consistently and reliable beat the market.

Second, dividends, if you buy a stock and it pays a dividend you owe tax on that divided. BRK.B which is a corporation receives more favorable tax treatment for the dividends it receives. So you are basically still receiving dividends but receiving a better tax treatment for those paid dividends and they are being put to better use than a normal investor can achieve.

Third, BRK.B has always outperformed after corrections, recessions, and crashes because it is excellent at capital allocation. After valuations get compressed it has cash to go bargain hunting.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

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