Stock market

DBCooper

DBCooper

Old Mossy Horns
Contributor
Mr.Gadget said:
401k is just a start.
What makes the difference is the additions of a roth,457, and pension.

Who only has just a 401 these days?
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Me. I have a smallish Roth....but, I'm not bragging on it.

Who here thinks their money stops working for them at retirement? We have a friend who retired almost 10 yrs ago. She told me last year that her portfolio is bigger now than when she retired.
 

Homebrewale

Old Mossy Horns
Scrub said:
Invest money in solid dividend paying stocks throughout a lifetime I think is a good way to grow your money. I average 7.8% on my retirement money….. Just for an EXAMPLE…Dividend income at 7.8% on $1,000,000 is $78,000 per year and withdraw all of it if you needed it. Even at 500k you’re at $39,000 so basically what a million doing 4% rule with half the money. Plus your investment(stocks) doesn’t change it only grows over time so you’re never taking anything from your investment. Take SS at 62 and you are going to retire pretty well if you have no debt.
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I don't invest in dividend stocks. There is nothing magical about dividends. It's not free money. When a stock pays a dividend, the price of the stock decreases by the value of the dividend. For example, a $50 stock paying a $2 will be priced at $48 post dividend. All a dividend is is a forced sale of a small portion of your stock. It is also taxable. I prefer to be able to decide when I want to create a taxable event. If I were to use individual stocks, BRK would be an ideal stock in that it gets good returns, pays no dividends and I would only pay long term capital gains tax of 15% when I want or need the money. A stock like Coca Cola would pay out dividends when I don't plan on needing any money and then having to pay tax when I don't want to.
 
Scrub

Scrub

Twelve Pointer
Contributor
Homebrewale said:
I don't invest in dividend stocks. There is nothing magical about dividends. It's not free money. When a stock pays a dividend, the price of the stock decreases by the value of the dividend. For example, a $50 stock paying a $2 will be priced at $48 post dividend. All a dividend is is a forced sale of a small portion of your stock. It is also taxable. I prefer to be able to decide when I want to create a taxable event. If I were to use individual stocks, BRK would be an ideal stock in that it gets good returns, pays no dividends and I would only pay long term capital gains tax of 15% when I want or need the money. A stock like Coca Cola would pay out dividends when I don't plan on needing any money and then having to pay tax when I don't want to.
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Have to manage your income level in retirement so you can mange the tax. Most dividends are taxed at 15% and some at 0%(LP’s). But it’s what anyone is comfortable with. If you own CD’s, savings accts, etc there is tax so nothing excludes it. If you sell stocks and there is a gain you pay tax. IRA distributions are taxed so all things investment wise will have some sort of tax. Not really sure what you mean by a forced sell for a stock that pays dividends. If that theory were true it would mean in a 12 month period a stock would only be worth less than it started. In your theory over time it would become worthless. Currently you can make way more of a return % wise with dividends versus CD’s, Saving accts, Bonds etc.
 
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Firedog

Firedog

Old Mossy Horns
Contributor
woodmoose said:
S&P popped the top,,,,again

View attachment 169648
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NASDAQ is floating right around the 20K mark too which is only a couple hundred points off the all time high.

I bought NVIDA on the DeepSeek dip week before last and it has bounced up 20% off the bottom so far.. did not get in right at the bottom but even a 15% return in 2 weeks is pretty good if I were to sell now, but with earning coming on the 26th and upside I believe in the price for the next 24 months.. the dip just let me buy more than I would have been able to get w/o it.
 

Buffet Trout

Twelve Pointer
Homebrewale said:
I don't invest in dividend stocks. There is nothing magical about dividends. It's not free money. When a stock pays a dividend, the price of the stock decreases by the value of the dividend. For example, a $50 stock paying a $2 will be priced at $48 post dividend. All a dividend is is a forced sale of a small portion of your stock. It is also taxable. I prefer to be able to decide when I want to create a taxable event. If I were to use individual stocks, BRK would be an ideal stock in that it gets good returns, pays no dividends and I would only pay long term capital gains tax of 15% when I want or need the money. A stock like Coca Cola would pay out dividends when I don't plan on needing any money and then having to pay tax when I don't want to.
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I recommend this book. Lots of real world and enlightening information about dividends.

 
Firedog

Firedog

Old Mossy Horns
Contributor
Fatkid said:
View attachment 169698S&P 500 has been good to my Roth IRA this year
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That is pretty close to what I am seeing as well over the last 12 months. I have 3 separate 401K accounts from different jobs over the years and a personal investment account. Goes to show there are lots of options out there that will get you to relatively the same spot. For the average person there is no better way to build wealth than investing in the market.
 
catfishrus

catfishrus

Twelve Pointer
Firedog said:
NASDAQ is floating right around the 20K mark too which is only a couple hundred points off the all time high.

I bought NVIDA on the DeepSeek dip week before last and it has bounced up 20% off the bottom so far.. did not get in right at the bottom but even a 15% return in 2 weeks is pretty good if I were to sell now, but with earning coming on the 26th and upside I believe in the price for the next 24 months.. the dip just let me buy more than I would have been able to get w/o it.
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I bought NVIDA a couple weeks before the Deepseek dip. I just broke even.
 

TomstoSwans486

Six Pointer
DBCooper said:
Me. I have a smallish Roth....but, I'm not bragging on it.

Who here thinks their money stops working for them at retirement? We have a friend who retired almost 10 yrs ago. She told me last year that her portfolio is bigger now than when she retired.
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If a portfolio stays invested (at least 50% equities) that is very common. I've been a financial planner for 17 years, I have numerous clients who are retired and have more money than they started with. The biggest risk and misconception is the idea you retire and then go to cash or very low risk assets. That's a train to broke-ville. It worked 60 years ago when people lived 5-10 years in retirement, but with folks living 20-30 years easily, money still needs to be growing. Inflation is the ultimate risk.
 
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Weaklink

Button Buck
I know it's mostly just losses on paper, but it sure scares the crap out of you when you're retired and depend on investments to fund you until death. Losses in the hundreds of thousands in the past couple weeks is worrisome. Not a great start for the new year......
 

TomstoSwans486

Six Pointer
great time to buy, if you're a buyer! I saw a Twitter (X) post showing the exact same thing in 2018 with Trump Round 1 tariffs, following the panic the market rallied. That is NOT a guarantee that will happen. But in all reality, the most overvalued "hyped" areas are selling the fastest. And we have not had a -10% drop in almost 2 years (which is odd). Seeing the AI-boom-stocks settle to earth is a good thing, to prevent another Dot.com era type bubble.

Defensives are (grocery stores, utilities, cigarette companies, some healthcare) are doing their job. Just proof that diversification does work.
 
Scrub

Scrub

Twelve Pointer
Contributor
mdunker said:
The pissing contest with Canada is not going to help.
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Makes Zero sense…claims an emergency over fentanyl when less than 1% comes from Canada. My thing no one dies from Fentanyl unless they take it. So 73,000 deaths from drug users using Fentanyl and we get a recession.
 
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