He said he has a Rollover IRA. If he follows the backdoor Roth process the conversion will be subject to the pro rata rule. Depending upon the balance in the Rollover IRA he may end up owing tax on nearly the entire converted amount.
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Investing General Discussion
- Thread starter Furious
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Kithani
Blackwing Lair Raider
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I would prob just convert the whole thing personally but I’ve never been in that situation so never went down the rabbit hole on it
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I'm guessing gold and oil will do well. Defense stocks maybe? Lockheed and General Dynamics et al?
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Arden
Blackwing Lair Raider
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Pretty much what I was thinking. Keep it simple: gold, a couple defense ETFs, a couple energy ETFs.
I like BTC a lot for the inevitable rebound, but can't imagine it will escape getting dragged down (initially) with tech stocks. That said, I have no plans to sell what I have, and I am keeping dry powder to buy more when it drops.
Cad
scientia potentia est
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You would have thought Lockheed would do better since the war started but it has pretty much been a dogshit stock.
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Ya I wonder about that one too. I have no concrete basis for thinking that this time the 'defense' stocks might not rise or profit from this, just a feeling that things might be different this time. At least in the medium-long term. IE past the next 6-8 months or so.
But it's the traditional play.
Cad
scientia potentia est
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It seems like it should be, and it smells that its not. How can you mismanage a company to the point that you're not a golden stock on DEFENSE contracts? It's like free money.Ya I wonder about that one too. I have no concrete basis for thinking that this time the 'defense' stocks might not rise or profit from this, just a feeling that things might be different this time. At least in the medium-long term. IE past the next 6-8 months or so.
But it's the traditional play.
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Synj
Dystopian Dreamer
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Arden
Blackwing Lair Raider
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You mean buy that for the rebound, I assume? Initially, you'd probably lose quite a bit of money with SPMO when the market first drops (assuming you were already invested).
Lambourne
Bronze Baronet of the Realm
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Anything they can't easily nationalize or confiscate, or is at least relatively illiquid. Real estate, classic cars, art/collectibles. Someone's probably waiting to yell Bitcoin right now but if the government knows you have it, they can still force you to hand it over.
If things collapse to a total war economy, you want things to trade. My grandparents lived through Nazi occupation and a lot of things were restricted and only available with a coupon. You could only buy a certain amount of butter or coffee each week for example. My grandfather didn't smoke but he'd get coupons for tobacco so he would buy some and trade it for coffee or meat.
Why would you think this, and why do you think the US would suffer a collapse because of it?
Sanrith Descartes
Its all the Joos' fault. Am I doing this right?
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Gravel
Mr. Poopybutthole
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The traditional portion of my TSP I guess finished its transfer yesterday, so the bulk of my money is ready to be re-invested (about 5% was Roth, which had to be a separate transfer, and it needed to wait for the traditional to clear for some reason).
Market is up about 1% from where I think it sold (660ish SPY?). I was really hoping for a down day today. Going to make it real hard to click the button to buy.
Market is up about 1% from where I think it sold (660ish SPY?). I was really hoping for a down day today. Going to make it real hard to click the button to buy.
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Sanrith Descartes
Its all the Joos' fault. Am I doing this right?
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Cad
scientia potentia est
- 29,078
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You have to evaluate the chances of the market continuing to go up from here and you missing this opportunity to buy in, versus it taking a dip that allows you to buy in at equal or less than your sell price when you rolled it over.
Given the market goes up most of the time historically, and especially now where the market is going up responding to inflation and currency devaluation in addition to market forces, the chances of having a fortunate dip in the next month or two might be less than normal.
But thats all gambling, like honest to goodness gambling since you're just trying to bet on what will happen... with likely 6 figures of your money.
Throw it back in and let it ride.
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Sanrith Descartes
Its all the Joos' fault. Am I doing this right?
- 48,755
- 131,480
I am in a similar boat, having taken some profits a few months back and waiting on a re-entry point.
Gravel
Mr. Poopybutthole
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Yeah, I've said it before, by the time I'm drawing from this money 20 years from now, will that 1% even matter? Probably not.
Went ahead and did it. I will say it's nice having everything at the same brokerage (my wife's 401k notwithstanding, which she still needs to move over). The account balance is...fun to look at.
Went ahead and did it. I will say it's nice having everything at the same brokerage (my wife's 401k notwithstanding, which she still needs to move over). The account balance is...fun to look at.
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