OT: Crypto, Stocks, Bonds, Real Estate, Investments, IRAs & Finances, etc.

[KnIcKsYaNkSmEtS1127]

Toranaga on HSAs, how to use them, and why they are the most overpowered investment account available, page 4.

Spoiler:

I can talk about HSAs for hours so let me know if you want to know my strategy on how I use one, which in my opinion is the best way.

I definitely wouldn't mind that if you have the time. No rush as I won't be getting it until next month.

So I treat it strictly as an investment account and invest the entire balance.

If I have medical expenses throughout the year, I pay it out of my own pocket and scan the receipts to Google drive or whatever and keep a very simple spreadsheet of my medical expenses through the years to stay organized. The reason i do that is that there is NO time restriction on when I can reimburse myself for those medical expenses from the HSA and the reimbursement will be tax free.

So let's say I go to the doctor and get a $5k bill tomorrow. If I pay it out of pocket, I can reimburse myself 25 years from now if I want the $5k from the HSA and that withdrawal will be tax free.

So... 1) I contribute to the HSA tax free 2) It grows invested tax free and 3) I can withdraw the balance tax free if I have medical expenses covering the amount that I withdraw. I will pay zero taxes on that money and the investment gains, which is crazy and doesn't happen in this country. The reason you keep the receipts is in case the IRS comes knocking about your HSA withdrawals and all you need to do is provide the receipts covering the withdrawal.

And let's say I still have money left in the HSA when I'm 65, it just turns into another traditional IRA account and I'll be able to withdraw the funds for non medical expenses.

I'll always be on a HDHP for as long as I can strictly for the HSA advantages. I'm generally healthy too so that helps.

Aq_ua on mortgages, tax deductions, renting vs owning, Page 5.

Spoiler:

How many of you "investors" are also carrying a high amount of debt? If you aren't debt-free (excluding your mortgage), you shouldn't be investing yet.

Picking up on this, I think it's probably worth clarifying when/why a mortgage can be excluded. Most people used to get tax deductions for the interest on their mortgage, but only if they file itemized deductions on their tax returns. The 2017 Tax Cuts and Jobs Act changed some of that math for people, where it makes more sense to take the standard deduction than itemized deductions. For those people, there is no longer any tax deduction available for mortgage interest. In a lot of ways, that probably changed a lot of math around the overall benefit of home ownership period.

My general advice is to always consider renting before buying. Investing the money you would have to put down on a home purchase will more likely generate a higher return than the potential rise in home prices from here on out. Plus, given how low rental yields are now, the same equivalent in rent for the costs associated in home ownership probably gets you a nicer place to live today.

Original Thread Starter Post:

Spoiler:

Which online brokers do you all recommend for stocks?

Has anybody used tastyworks or thinkorswim in particular?

Just to clarify all the tax changes sunset in 2026 so deciding to not buy a home due to a temporary tax law change is really short sided.

[KnIcKsYaNkSmEtS1127]

Is there any bad news that can get reported that will actually negatively impact the market?
It seems like the market is glossing over all the terrible economic data and poor earnings. Do people really believe we will go from a 15% unemployment rate to 4% within a month after things finally "normalize" (whatever that means)?

Doesn't matter. Sooner or later reality will settle in whether there is news or not.

Also those unemployment figures were helped out by the PPPL Program. Now the funds are drying up so I expect unemployment to start being a more true number.

[NYKinMIA]

Are you looking to invest, or become a trader? This is a question you need to ask yourself. If your looking to Invest, what is your goal? Is it short-term or long term? As an investor you should balance your portfolio to help mange risk. Right now I'm investing in an S&P 500 ETF thru my employer 401k (5% contribution per pay check), but I've also brought shares of Microsoft and Nikola Corp. recently via the Robin Hood App to diversify. My investing is long term, so I'm not buying and trading stocks daily. That's what a trader does.

Also if your in it for the long term, know that the market will always rise and drop, so it's good to hold your position. If your buying individual stocks holding is good, buy you also should take profits when you can. I'm using 25-25-50 strategy. Take profits at 25%, if the stocks drops 25% and hover in that area for 10-15 days, buy more.(it will more than likely go up) If the stock drops 50%, sell and walk away.

As for "day trading" I can't speak to it, because I'm not a "day trader"

Hope this is helpful. *disclaimer I am not a financial analyst*

Thank you my dude, appreciate the reply.

I'm looking at more of a long term wealth building type strategy.
I have a TD account that I've already used to buy things like AMD, AVGO, ZI and 5 whole shares of NVDA
I've read that AT&T is nice long play and am considering buying some for the 5G thing.

I'm looking to invest not trade, but be able to cash in here and there if opportunity arises.
I'd like very much in 3-4 years to have some things go my way.
I'm craving the knowledge, but have very little idea of where to start.

[bigfnjoe96]

Tech stocks are on right now. Good to see your holding Nvidia. They just announced a partnership with Mercedes Benz to provide software to their cars beginning in 2024

Sent from my Pixel 3a using Tapatalk

[aq_ua]

Toranaga on HSAs, how to use them, and why they are the most overpowered investment account available, page 4.

Spoiler:

I definitely wouldn't mind that if you have the time. No rush as I won't be getting it until next month.

So I treat it strictly as an investment account and invest the entire balance.

If I have medical expenses throughout the year, I pay it out of my own pocket and scan the receipts to Google drive or whatever and keep a very simple spreadsheet of my medical expenses through the years to stay organized. The reason i do that is that there is NO time restriction on when I can reimburse myself for those medical expenses from the HSA and the reimbursement will be tax free.

So let's say I go to the doctor and get a $5k bill tomorrow. If I pay it out of pocket, I can reimburse myself 25 years from now if I want the $5k from the HSA and that withdrawal will be tax free.

So... 1) I contribute to the HSA tax free 2) It grows invested tax free and 3) I can withdraw the balance tax free if I have medical expenses covering the amount that I withdraw. I will pay zero taxes on that money and the investment gains, which is crazy and doesn't happen in this country. The reason you keep the receipts is in case the IRS comes knocking about your HSA withdrawals and all you need to do is provide the receipts covering the withdrawal.

And let's say I still have money left in the HSA when I'm 65, it just turns into another traditional IRA account and I'll be able to withdraw the funds for non medical expenses.

I'll always be on a HDHP for as long as I can strictly for the HSA advantages. I'm generally healthy too so that helps.

Aq_ua on mortgages, tax deductions, renting vs owning, Page 5.

Spoiler:

How many of you "investors" are also carrying a high amount of debt? If you aren't debt-free (excluding your mortgage), you shouldn't be investing yet.

Picking up on this, I think it's probably worth clarifying when/why a mortgage can be excluded. Most people used to get tax deductions for the interest on their mortgage, but only if they file itemized deductions on their tax returns. The 2017 Tax Cuts and Jobs Act changed some of that math for people, where it makes more sense to take the standard deduction than itemized deductions. For those people, there is no longer any tax deduction available for mortgage interest. In a lot of ways, that probably changed a lot of math around the overall benefit of home ownership period.

My general advice is to always consider renting before buying. Investing the money you would have to put down on a home purchase will more likely generate a higher return than the potential rise in home prices from here on out. Plus, given how low rental yields are now, the same equivalent in rent for the costs associated in home ownership probably gets you a nicer place to live today.

Original Thread Starter Post:

Spoiler:

Which online brokers do you all recommend for stocks?

Has anybody used tastyworks or thinkorswim in particular?

Just to clarify all the tax changes sunset in 2026 so deciding to not buy a home due to a temporary tax law change is really short sided.

To be clear, there are more than one factors in the rent or buy decision making. Ultimately, I absolutely think renting is better given capital is finite and there are better places to invest the substantial amount of cash required to buy a home.

However, if we are including projections of what happens in the mid to long-term future, there are a number of trends worth paying attention to.

First, the reality that a multi-trillion dollar stimulus has been injected into the economy, which is going to take years to pay back. Tax cuts are not in the cards for a long time, and if anything extensions of tax hikes and increased taxes are more likely.

Second, home ownership is no longer viewed as a right, it's now much more of a privilege. That has been a trend around the world for a while, and no economy, especially around urban centers, can be immune to it, the math just doesn't add up. The myth around eternally appreciating home prices has also been debunked - there is no automatic assumption that buying a home will increase overall equity over time.

Third, the way in which we work and live is shifting. Telecommuting is being proven to be not only possible but sometimes a superior option. The value of being physically mobile to relocate without being strapped down by ownership of illiquid assets and an associated mortgages is increasing.

On the flip side, you can make an argument that these overall trends mean that demand for owning homes in traditionally high demand locations will be go down while rent demand increases pushes rents higher, and therefore eventually an inflection point where owning is a superior choice to renting is achieved. That is also an entirely plausible scenario that has happened throughout history.

However, the uncertainty around all these outcomes means option value is extremely high - you have option value if you rent with the option to switch to ownership down the line when the economics change. You do not have option value if you lock in ownership today. Hence, my general advice does not change.

[KOA]

Second, home ownership is no longer viewed as a right, it's now much more of a privilege. That has been a trend around the world for a while, and no economy, especially around urban centers, can be immune to it, the math just doesn't add up. The myth around eternally appreciating home prices has also been debunked - there is no automatic assumption that buying a home will increase overall equity over time.

If you exclude the real estate bubble of 2009, home prices have largely increased 3-5% per year. With interest rates on the lower end of that range and the ability to lever 4:1 on a conventional mortgage, it can actually be considered a decent investment...

In this day in age, duplexes and multi-family homes are becoming more prevalent, and at that point there really is no comparison in making the decision.

[aq_ua]

Second, home ownership is no longer viewed as a right, it's now much more of a privilege. That has been a trend around the world for a while, and no economy, especially around urban centers, can be immune to it, the math just doesn't add up. The myth around eternally appreciating home prices has also been debunked - there is no automatic assumption that buying a home will increase overall equity over time.

If you exclude the real estate bubble of 2009, home prices have largely increased 3-5% per year. With interest rates on the lower end of that range and the ability to lever 4:1 on a conventional mortgage, it can actually be considered a decent investment...

In this day in age, duplexes and multi-family homes are becoming more prevalent, and at that point there really is no comparison in making the decision.

You can argue that interest rates are artificially low now, therefore home and generally asset prices are also artificially inflated. Interest rates will eventually rise again. Stimulus will eventually run out. Taxes will have to rise to compensate.

To your second point, I think that's the mobility point I raised. I think it's very important to have flexibility and option at a time when the future is incredibly uncertain.

[NYKinMIA]

OK, fellas. Can someone decipher this for me?

Jim Cramer talked about getting into "E-mini S&P 500 futures" before the 4th of July, as it's shown a long history of growth over the holiday weekend.

Thanks in advance $$$

[kej718]

Trying to buy dividend stocks to gradually build my account. So far I'm getting close to $60 a month, owning the following (bold give monthly dividends):
GAIN
STAG
MAIN
LTC
O
EPR
CAH
QSR
BA
V
AIG
PPL
SBR
SPHD
ACB
VTI
VIG
MGK

Depending on how the market reacts Monday I will try and buy these for the long term:
DOW
XOM
KO
IBM
PFE
CSCO
SJR
PSEC
VOO

I am going to start swing trading in the months to come, and then when I am more comfortable I will give Options a try again.

[Stannis]

Trying to buy dividend stocks to gradually build my account. So far I'm getting close to $60 a month, owning the following (bold give monthly dividends):
Depending on how the market reacts Monday I will try and buy these for the long term:


I am going to start swing trading in the months to come, and then when I am more comfortable I will give Options a try again.

I have these stocks that I am still bullish on. I didn't necessarily buy them for the dividends, but it's better than average and I like their future's outlook.

BAC
HASI
ABBV
SYY
RDS.B

My tech and tech REITs are at ATHs, so maybe not a good entry point.

AVGO
TSM
DLR
CCI

All of these are giving me a pretty sizable dividend.

[kej718]

Trying to buy dividend stocks to gradually build my account. So far I'm getting close to $60 a month, owning the following (bold give monthly dividends):
Depending on how the market reacts Monday I will try and buy these for the long term:


I am going to start swing trading in the months to come, and then when I am more comfortable I will give Options a try again.

I have these stocks that I am still bullish on. I didn't necessarily buy them for the dividends, but it's better than average and I like their future's outlook.

BAC
HASI
ABBV
SYY
RDS.B

My tech and tech REITs are at ATHs, so maybe not a good entry point.

AVGO
TSM
DLR
CCI

All of these are giving me a pretty sizable dividend.

Thanks i'll add it to my watch list for now.

[J0rdan4life42o]

Trying to buy dividend stocks to gradually build my account. So far I'm getting close to $60 a month, owning the following (bold give monthly dividends):
GAIN
STAG
MAIN
LTC
O
EPR
CAH
QSR
BA
V
AIG
PPL
SBR
SPHD
ACB
VTI
VIG
MGK

Depending on how the market reacts Monday I will try and buy these for the long term:
DOW
XOM
KO
IBM
PFE
CSCO
SJR
PSEC
VOO

I am going to start swing trading in the months to come, and then when I am more comfortable I will give Options a try again.

Take a look at EMR. Continues to pay out dividends- strong balance sheet with plenty of liquidity.

Sent from my Pixel 3 using RealGM mobile app

[Iron Mantis]

Anyone in on the leading companies developing vaccines for Corona?

[dakomish23]

Some good names.

I bought DXCM when I first started, so I was being cheap. I wish I bought more because they went up like 40%+ a month or two later.

DXCM has been crazy. I wanted to buy more but it just took off

AMD was a great pickup too. I really wish I got in the game sooner.

When it was under $5 a share, that looked like a no-brainer.

Did you keep your AMD position? One of the better performers in 2020.

Full list here

https://www.kiplinger.com/investing/stocks/602021/the-best-and-worst-sp-500-stocks-from-2020

[Stannis]

DXCM has been crazy. I wanted to buy more but it just took off

AMD was a great pickup too. I really wish I got in the game sooner.

When it was under $5 a share, that looked like a no-brainer.

Did you keep your AMD position? One of the better performers in 2020.

Full list here

https://www.kiplinger.com/investing/stocks/602021/the-best-and-worst-sp-500-stocks-from-2020

lol. I never held it. It was 40ish around that time and I thought it was too much. And I was already deep in Nvdia, Broadcom, and TSM

[Spree2Houston]

If Quickley plays the entire way, we winning this

[robillionaire]

If Quickley plays the entire way, we winning this

I agree, he is a great investment.

[dakomish23]

AMD was a great pickup too. I really wish I got in the game sooner.

When it was under $5 a share, that looked like a no-brainer.

Did you keep your AMD position? One of the better performers in 2020.

Full list here

https://www.kiplinger.com/investing/stocks/602021/the-best-and-worst-sp-500-stocks-from-2020

lol. I never held it. It was 40ish around that time and I thought it was too much. And I was already deep in Nvdia, Broadcom, and TSM

Damn. At least you got the the other ones. Is that STM or TSM? I have STM.

Looking for some new picks. thinking about Kellog b/c of their faux meat product.

[Stannis]

Did you keep your AMD position? One of the better performers in 2020.

Full list here

https://www.kiplinger.com/investing/stocks/602021/the-best-and-worst-sp-500-stocks-from-2020

lol. I never held it. It was 40ish around that time and I thought it was too much. And I was already deep in Nvdia, Broadcom, and TSM

Damn. At least you got the the other ones. Is that STM or TSM? I have STM.

Looking for some new picks. thinking about Kellog b/c of their faux meat product.

TSM. It's been performing well for me.

I feel the faux meat sector is competitive. And I think eventually Walmart, Target, and big chain stores will start making their own like they do regular beef

I know nothing of this sector though. Someone on the Current Affairs board recommended Tattooed Chef and it popped like 30 40 percent.

VRYYF is a faux meat company I've been eyeing.

AQN is a seafood tech company. They specialize in mass producing Salmon inland. Which sounds like a good idea as people will be eating more seafood if cows become scarce.

I'm betting on a meat shortage in the next decade so I'll be trying to get into some of these stocks.

[Stannis]

Anyone playing these insane stocks?

GameStop, BlackBerry, and Nokia.

What a day