Money Talk 2021

[markiver54]

What you convey is admirable!
Let us keep in mind though that everyone looks to their own God.
That I hope is as religious as we will get.
You seem to have good morals though.

[GFK]

Sorry. I was not trying to be religious. Just acknowledging as our fore fathers did, as stated in the Declaration of Independence. It is challenging to put your life on the line (for many years) and not believe what you are standing for. But, I suspect that we all believe something and will stand for something. If not, who are we?

But, that not about money. So hopefully, we will be able to live comfortably in this life. At any rate, that is one of my goals: invest now for later.

[markiver54]

Amen brother...no harm. Just doing my job to curb anything that could lead to unwanted thread content. Carry on my friend!..☺

[Sir Henry]

I don't get antsy over the daily stock reports. As long as I get the dividend reinvested I'm okay. Overall I've done fairly well just letting it ride. One of these days I'll sell and owe a S##% load of tax. Just checked mine and at 1:18 CST my stocks are down less than 1/2% or a bit over $500. I'll not sweat that too much. I remember last October when things went to hell it didn't take long for it to rebound.
Jake

I normally don’t either but I’m at the age where I’m required to sell my IRA. I need to be completely out of it by 2032 and must sell a minimum each year.

I'm confused by the above statement. I was under the impression that there is no requirement to be completely out of your IRA by a certain age/time. I do realize that the rules of Required Minimum Distribution (RMD) will impact the principle over time and the balance may diminish so it makes sense to manage it differently.

So if I found a $5 on the floor of my truck I'd have to turn it over to my wife.

Paul

Traditional IRA’s are subject to mandatory withdrawal from the year you turn 70 1/2. Roth’s are not subject to that rule.

Note: I just read that under the Secure Act of 2020 I’m now not required. Regardless I’m still going to stick with withdrawing. I might as well spend it as I’ve heard you can’t take it with you.

https://thelink.ascensus.com/articles/2 ... ast-age-70

[CT_Shooter]

Traditional IRA’s are subject to mandatory withdrawal from the year you turn 70 1/2. Roth’s are not subject to that rule.

Note: I just read that under the Secure Act of 2020 I’m now not required. Regardless I’m still going to stick with withdrawing. I might as well spend it as I’ve heard you can’t take it with you.

https://thelink.ascensus.com/articles/2 ... ast-age-70

The rule for Mandatory withdrawals has changed. The first withdrawal is required by April of the year you turn 72, then by December of subsequent years, including the year you turn 72. You can avoid the double withdrawal and increased tax liability in that first year by making your first withdrawal by December of the year before you turn 72.

https://www.irs.gov/retirement-plans/pl ... tions-rmds

[Headhog]

I think we are on the same page just approaching if differently. I've discussed the RMD with my investment manager and he assured me I'm currently meeting the RMD requirement. We usually have a sit down discussion once a year unless I feel the need to discuss something. Right now the game plan we agreed to is working very well so i'm a happy camper.

Paul

[Shakey Jake]

Today's market wiped out yesterday's losses. It always has it's ups and downs.
Jake

[Sir Henry]

Today's market wiped out yesterday's losses. It always has it's ups and downs.
Jake

The Russell 1000 lost a bit more today but I see where the Dow gained some back. I’m not really concerned other than I want to sell. The R1 carries more risk than the S&P500 but it has better rewards also. At 71 years I’m getting too old for the higher risk.

[GFK]

It seems that I was more concern about risk, when I was younger. I found myself seeking more aggressive funds lately. I think that I may back off some, when I reach my 70s as well. As pointed out, you can take it with you, and someone will probably spend it. So, it might as well be me.

But, one does not have to be well off, just has to have a steady stream of income. When I was active duty (in the 80s), a financial planner offered a free counseling session. The thing that stood out was his advice about retirement:

1. Most of you will be able to retire from the service, before the age of 40, and work another 20 years and collect an another retirement check.
2. Look at retirement as a stool. The more legs, the better the support: a four leg stool is more stable than a three leg stool. The idea, get as many legs as possible, each stream of income counts as a leg.
3. The Department of Commerce claimed that out of 100 people by the age of 65, 1 will be wealthy, 4 will be comfortable, 3 will be working, 29 will be dead and 63 will be dependent on others (include social security). People didn't plan to fail, just fail to plan.
4. Social security will be there.
5. Start saving now.

Since I have no control over when I die, I decided to shoot for being comfortable. Going on 35 years, I have generally followed his advice. And if I do make it a few more years, I should have a four legged stool. I don't have a lot put away. But, the steams will probably be more in retirement than when I was working.

His point was to seek as many streams of income as possible. And, savings is just one of them. But, it is the leg we have a great deal of control over. So, save now. It will pay dividends in the years to come.

[Sir Henry]

Today's market wiped out yesterday's losses. It always has it's ups and downs.
Jake

The Russell 1000 lost a bit more today but I see where the Dow gained some back. I’m not really concerned other than I want to sell. The R1 carries more risk than the S&P500 but it has better rewards also. At 71 years I’m getting too old for the higher risk.

The Russell 1000 gained some in the last half hour of trading to close slightly higher. I watch it closely and right before closing make a decision to sell or not. I’m taking small amounts out when I think it’s going to close higher. I’m hoping to do that till January 20th.

[Sir Henry]

What a day to sell shares! I checked the R1 and it was up over 1% for most of the day so I called an order in. Then went back to the R1 site and it had dropped. Checked the news and thought oh oh. Ended up closing up.

[Sir Henry]

The R1 closed up yesterday but my shares were slightly lower. The R1 is up again today and I’m selling a few more shares. I’ll call the order in about 30 minutes and then be on edge till about 10 pm my time to find out the closing price.

I’m selling about 10% of my holdings and will be buying 50 rounds of 22LR ammo with it.

[GFK]

Man, that must be some expensive ammo!

[Sir Henry]

Man, that must be some expensive ammo!

I was being facetious about ammo being hard to find and when you do it’s way overpriced. That and I just plain don’t have very many shares of stock.

[GFK]

I have not bought 22 rounds for over 20 years. But, GB has 500 for $100. I guess that is not too bad?

https://www.gunbroker.com/Ammunition/search

[Sir Henry]

I have not bought 22 rounds for over 20 years. But, GB has 500 for $100. I guess that is not too bad?

https://www.gunbroker.com/Ammunition/search

That is insane! Those listings actually have multiple bids. I should sell some of mine at those prices. I have ammo that old but some of its only six years old.

[Hatchdog]

Thought I heard yesterday that all five indexes closed with new records. First time in history I believe was mentioned.

[Sir Henry]

Mine closed up $2.19 or 2.22%. This is a 20 year chart. As you can see it is going through the roof.

It took more than 12 years to gain back what the ENRON scandal at the beginning of the millennium lost. Compare that to the 33.97% gain in the last year. It says YTD but that was for 2020 and apparently has not been reset. In 2019 it gained 38% and 2018 was more than 20%.

It can not continue like this.

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