The Rokslide Stock Traders Thread

[Rotnguns]

A friend of mine turned down a small raise “because I didn’t want to jump into a higher tax bracket”. I just shook my head


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I worked with someone years ago who did the very same thing. So many analytically-challenged people out there. I've tried to explain how a progressive tax structure works but I guess I'm not very good at it.

 

[SWFLhntr]

Seems like MSTY would be a good pick to have in a Roth considering much of the dividend is taxed as income?

 

[NDGuy]

For the Tesla folks

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Man we really are speedrunning to SkyNet aren't we

 

[CorbLand]

If high schools made all kids take a class in how taxes, 401ks/ira and the stock market worked they would be better off. Most of the 20 year olds at work don’t even know how to write a check. I wish I had been better educated at that age, I’d have a lot more money.

Thats parents jobs not schools.

The problem is that most parents think talking with their kids about their finances is taboo and shouldnt be done. Your kids dont need to know how much money you have but you are doing them a great disservice by not teaching them how you made that money and what you should do with it.

With that said though, you kind of point out a problem in your post. The world has changed so much, so quickly that parents struggle to keep up. Take your check example. The ability to write a check is not nearly as important now as it was 20 years ago. I write one check a year and the only reason that I do is because I have a couple books left and I might as well use them.

 

[fmyth]

So, lets say I have say 100 shares of MSTY. For Jan. it looks like the distribution was $2.279/share. So, for January I'd get a $227.9 distribution/dividend and I'd be taxed a portion of this?

Correct.

So, for January I'd get a $227.9 distribution/dividend and I'd be taxed a portion of this?

Correct. Roughly 50% is taxable for the first 26 periods. My understanding is that after the 26ths payout you would have been paid 100% of your initial investment so all future payments would be 100% taxable.

And each month it basically mirrors what MSTR does (which mirrors BTC??). Is this right?

No. MSTY's ability to make money trading options is proportionate to MSTR's volatility. MSTR's volatility is caused by the fluctuating price of BTC. The per share price of MSTY has been fairly stable compared to MSTR over the last 11 months. MSTY share price hasn't had wild swings because it is not directly tied to the price of MSTR or BTC. I am not planning on significant MSTY share price appreciation. I'm in it for the 13 payouts per year which have averaged roughly 9% each during MSTY's short 11 month life.

Investing in MSTY is like dating a very hot girl with herpes. You'll have the time of your life, until you wake up with a burning sensation.

I hope the ride lasts for 2 1/2 years. If not I'll likely be the grey haired guy in the blue vest saying "Welcome to Walmart would you like a shopping cart?" Do Walmart employees get a discount on ammo? Might not be so bad after all.

 

[MountainTracker]

Man we really are speedrunning to SkyNet aren't we

You’re not kidding. I’m going to have to buy a bot to protect me from the other bots. A little like the movie I am Robot.


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[fmyth]

Seems like MSTY would be a good pick to have in a Roth considering much of the dividend is taxed as income?

Yes. Mine is set to reinvest the dividend. If it continues to payout a 9% avg dividend per period (13 payouts per year) my initial investment would grow 3.5X per year. Using these numbers the 8k I just put in my Roth and bought MSTY shares with would be worth 1.2M in 5 years. I'm not that optimistic but I'll roll the dice.

 

[MountainTracker]

Thats parents jobs not schools.

The problem is that most parents think talking with their kids about their finances is taboo and shouldnt be done. Your kids dont need to know how much money you have but you are doing them a great disservice by not teaching them how you made that money and what you should do with it.

With that said though, you kind of point out a problem in your post. The world has changed so much, so quickly that parents struggle to keep up. Take your check example. The ability to write a check is not nearly as important now as it was 20 years ago. I write one check a year and the only reason that I do is because I have a couple books left and I might as well use them.

One thing I come across is people don’t know how to balance their own accounts to know how much $ they even have, seems crazy to me.


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[fmyth]

Way to go


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Thank you. It wasn't really my choice to retire. My customers are real estate agents. They have suffered a once in a decade "winter kill". 75% of them haven't had a paycheck in over a year. They have lost all hope. Most are still licensed but have sought other employment. Sadly after 18 years it no longer makes sense to continue to promote my training and consulting. Late last December I decided to wind down my business. I still have some intellectual property I may be able to monetize passively in the future when the RE market comes back to life. For now my job is managing my own money/investments.

 

[CorbLand]

One thing I come across is people don’t know how to balance their own accounts to know how much $ they even have, seems crazy to me.


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I work with project managers for a living. Many of them are 45 plus years old. Its their job to manage budgets for their projects. I dont think a single one of them really knows how to actually manage a budget.

 

[Pharmseller]

VOO
VGT
AAPL
GOOGL

Some that I may hold until I retire or sell
FBTC
MSTR
PSX
MPW

Tag

My wife closed out a pension from a former employer to roll into her IRA (so not a taxable event), $27,500 needs a new home.

 

[KsRancher]

Thats parents jobs not schools.

The problem is that most parents think talking with their kids about their finances is taboo and shouldnt be done. Your kids dont need to know how much money you have but you are doing them a great disservice by not teaching them how you made that money and what you should do with it.

With that said though, you kind of point out a problem in your post. The world has changed so much, so quickly that parents struggle to keep up. Take your check example. The ability to write a check is not nearly as important now as it was 20 years ago. I write one check a year and the only reason that I do is because I have a couple books left and I might as well use them.

We talk about everything with out kids. And maybe too much as far as money. My oldest son (18yrs old) is a numbers guy. His mom is a HS english teacher and he cant string two correct sentences together. But if you asked him what 5425 × 27 was he would tell you.

I honestly think he is too consumed with money. We have only let our kids to CD's at the bank. When he turned 18 he he said "I am opening a brokerage account". So he is investing his money as his CD's expire. He will either be the wealthiest person or the poorest person. Depends on how he does with it. But I say he may have taken it to for because for 18yrs old he is one shrewd SOB. Great kid, but WOW is he shrewd.

Sorry for getting this thread off track. Back to it.

 

[CorbLand]

We talk about everything with out kids. And maybe too much as far as money. My oldest son (18yrs old) is a numbers guy. His mom is a HS english teacher and he cant string two correct sentences together. But if you asked him what 5425 × 27 was he would tell you.

I honestly think he is too consumed with money. We have only let our kids to CD's at the bank. When he turned 18 he he said "I am opening a brokerage account". So he is investing his money as his CD's expire. He will either be the wealthiest person or the poorest person. Depends on how he does with it. But I say he may have taken it to for because for 18yrs old he is one shrewd SOB. Great kid, but WOW is he shrewd.

Sorry for getting this thread off track. Back to it.

Defintely hard to find the balance. I look back and tell myself things like, if you wouldnt have bought that Xbox and bought Apple when you were 14 or if you would have bought Microsoft instead of x, you would have so much more money. Then I have to remind myself that some of things were a lot of damn fun and I have some good memories because of them.

Even at 33 its hard to find the balance but one must do it because dying with a bank account full of money and no experiences shouldnt be a goal. My grandpa took one vacation a year and socked every penny he could away for retirement. He died with money and you know what his kids did with it? Spent it.