The Rokslide Stock Traders Thread

[bow_dozer]

Almost all of my retirement is IRA or 401(k). Pretty fortunate there.

Roth conversions could pencil depending on age. Blessing for your heirs as withdrawals won’t be taxable.

 

[Pharmseller]

Roth conversions could pencil depending on age. Blessing for your heirs as withdrawals won’t be taxable.

What are the income restrictions for Roth conversions? Or is it all just the initial tax burden?

 

[CorbLand]

Good post. Add to that^

....the current S&P index is tech weighted. The tech sector will continue to outperform over a long time horizon.

Then add; the folks selecting this S&P index rejigger it regularly- dumping the under performers and adding the over achievers. This has the effect of a better return on investment.

I haven't looked to see if you can buy an S&P ETF that is evenly weighted and less concentrated.
For example; in the Tech ETF space you can get VGT thats heavily weighted to 6 stocks.....or you can buy QTEC that is evenly weighted to the entire space- they hold a max of 3% in any one stock. I really like that one.

RSPA was probably the most diverse when I looked. Fowl Plays post got me curious. It’s still pretty sector heavy just like the SP500 but it’s not as concentrated in specific companies. I didn’t dig too deep though.

 

[noisy]

I remember when GOOG went public in late 2004, IIRC. At the time I remember thinking, they give it (search and email) away for free so how much money could they make? That should tell you how smart I am.

No step up usually means in an irrevocable trust. Not trying to pry, but man losing the step up basis for that kind of gain is gonna be costly. And the last entity you want to give a dime more than you have to is Uncle Sam.


Eddie

Same here. When they told me they bought all that Google I was like you guys don't even know what Google is. Turned out I was the one who didn't know what Google was. Lol.

And yes, it was an irrevocable trust that I have since dissolved.

 

[bow_dozer]

What are the income restrictions for Roth conversions? Or is it all just the initial tax burden?

The latter. Structured over a phased conversion helps the bite.