The Official M6G Investment thread

BeastAR

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1. I'll have to take a look at the brokers. Any reason you like schwab over the others?


My CPA deals with him, himself, so he recommended them to me. I like them because of zero commissions, make trading cheap. I also like the banking aspect. Your brokerage is a savings account and then you link a checking to it. its real nice. But if you don't want to you don't have to. I link my old bank checking to it as well, and my business account, one can electronically transfer whenever want. Can also do international transfers for my business, which my small bank couldn't do.

2. I assume I can link checking or savings account..? Possibly open an additional savings to like it to a trading account.

See above, the brokerage is your savings.
What you don't use for trading it just sits in there collecting interest. Thing is you can actually trade it into a high yield ticker for better than any savings account thru a bank or just leave it in a solid dividend stock and trade out of it if you need the money.


3. Yes, looking to possibly use a thousand (example) and try trading as other means of making money/investing.

Sounds good, that's what you wanna do


4. Company 401k provider is Trowe Price. I believe I have been doing pretty well, gains have been 9-12% over the life so far. And I've read that I might be able to trade with more options this year... So we shall see. Hopefully retire at 59, so have 22 years left. However, since I work commercial nuclear, life of the plant is a factor as well. Worse case, retire at 55 when the plant closes... All in all, I should hopefully be set at either aspect. Note: If the government is reading this, bump up the $19.5k max for investing into 401k... :like:
sounds like your doing very well. If you have any kids, think about college funds like plan 529. There's a tax write off for up to a certain amount per child, per parent.

5. That what I was thinking. So do I have to keep track of every gain and loss or do the companies/apps keep trake of those things and just give a report at the end of the month/year? Then I would claim the gains and pay taxes on them, correct?

Of course, will have to sit down with the wife and make sure she is all good with it. Or just start with a lot smaller $. Is there any website or book you use that help you with starting/researching for trading?


that's exactly correct, they generate a report for you and you have to report the gains or losses. So if you lose 1K(up to 3K i think can be claimed as losses) you can write that off as a loss.
But yeah, you just pay taxes on the gains.
Right now tax code is 20% for assets held for over a year and like 30% if under a year. So say you have a stock you buy and trade out of it 5 days later for a 20% gains you'll be taxed 30% of that 20% gain. Say you made $100. well, you clear $70.
So you have to take that into consideration. At the end of the year tax man will come calling
Your brokerage should show all your gains and losses daily, in a report. Its at your fingertips with Schwab. There are many good brokerages, so do some looking. Maybe even ask your 401k provider who they recommend for zero fee trades and great customer service.

as far as research goes, I dont use any publications. I just go by what I like. Don't invest in things you don't think are the future or have a future. Only buy what you would want, not what someone else is buying just because they are buying it.
So look into segments of industry, tech, biotech, energy, commodities and see where you see a need, a future need, demand and breakthru ideas etc.
Maybe it could be in your field of expertise
One thing, you gotta do a lot of research. I've learned a lot about areas out of my expertise. Lots of learning to do, especially when I put so much $ into an investment, I wanna make sure I believe in it 100%. If your trading a low % of your net worth, it's not as critical, in my opinion, but if trading say 10% into a trade, better know all there is to know, at least what is public :)
Hope this helps some!!

Good luck! Let us know how things go.
Thank you!! Appreciate all the information. I can make a full account with Trowe Price, but was looking into having a "few eggs in a different basket". But I will dig into them as well to see all the costs. Honestly been looking back and forth a good hour so far.

No kids.... Makes the things my wife and I easier to do. We have said, "whatever happens, happens..." Unless someone knows how to get SSN#s for animals, then we have a couple dependents we haven't been claiming.





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machsmith

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that's exactly correct, they generate a report for you and you have to report the gains or losses. So if you lose 1K(up to 3K i think can be claimed as losses) you can write that off as a loss.
But yeah, you just pay taxes on the gains.
Right now tax code is 20% for assets held for over a year and like 30% if under a year. So say you have a stock you buy and trade out of it 5 days later for a 20% gains you'll be taxed 30% of that 20% gain. Say you made $100. well, you clear $70.
So you have to take that into consideration. At the end of the year tax man will come calling
Your brokerage should show all your gains and losses daily, in a report. Its at your fingertips with Schwab. There are many good brokerages, so do some looking. Maybe even ask your 401k provider who they recommend for zero fee trades and great customer service.

as far as research goes, I dont use any publications. I just go by what I like. Don't invest in things you don't think are the future or have a future. Only buy what you would want, not what someone else is buying just because they are buying it.
So look into segments of industry, tech, biotech, energy, commodities and see where you see a need, a future need, demand and breakthru ideas etc.
Maybe it could be in your field of expertise
One thing, you gotta do a lot of research. I've learned a lot about areas out of my expertise. Lots of learning to do, especially when I put so much $ into an investment, I wanna make sure I believe in it 100%. If your trading a low % of your net worth, it's not as critical, in my opinion, but if trading say 10% into a trade, better know all there is to know, at least what is public :)
Hope this helps some!!

Good luck! Let us know how things go.
Thank you!! Appreciate all the information. I can make a full account with Trowe Price, but was looking into having a "few eggs in a different basket". But I will dig into them as well to see all the costs. Honestly been looking back and forth a good hour so far.

No kids.... Makes the things my wife and I easier to do. We have said, "whatever happens, happens..." Unless someone knows how to get SSN#s for animals, then we have a couple dependents we haven't been claiming.
haha! well, that's a good way of looking at it, and just suggestion if you did have any.
Yeah, may as well look around for another provider, maybe keep them honest. Thing is, it's nice to have things under one roof. Just wanna make sure accounts are FDIC insured for what you have in them.
 

XS

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Fun thread! I have funds but also chase stocks because I enjoy it. I will say this financial climate is challenging. I've done pretty well staying ahead of the swings but I'm anxious to see how January goes. Typically it's a down month, and I usually move investments around the last week of December. I didn't this year though, although I'm still mostly expecting January to pull back.
 

Bull Run

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Where are they at in their S curve?
Is there a lot more growth for them?
I try to hit stocks that are at an infection point or as close to it as possible. Sometimes you gotta wait before they pop... and it takes months or more.
Lots of people have done well in SPACs this year but I think those are becoming more of a pump and dump. Some have bright futures, im sure. If you can, get a Twitter account and follow a couple well notarized stock gurus and see what they do. Maybe not jump right into the ones they recommend, but watch and wait for the right time to jump in.
Just some thoughts. I don't have any money in funds right now. When I'm done with building the majority of my wealth, ill do covered calls to generate 40 to 50k a year easy, and also put a sizable amount into a high dividend stock. right now, im waiting for inflection in my holdings.
As mentioned on the other post, my retirement accounts are invested in the boring index funds. Other than rebalancing about once a year, they are set on auto pilot as I have ways to go before I hit the traditional retirement age, and since I max out my contributions every year now and also have an Army Reserve/National Guard pension that I can start drawing at 58, a mere market return will be more than enough. Thus no researching going on for these accounts

Non-retirement accounts are where I take a little more risk as messing them up won't hinder my normal retirement schedule. I read up on options but I think I'll hold off on it until I get more experience. My initial goal is more income focused; I'd consider myself to be financially independent (FI) "lite" at $36K/yr of passive non-retirement income. Because we have very little fixed expenses (no debt, house paid off), an average of $3K a month income allows us to get by comfortability in case I get laid off AND stop doing the monthly National Guard drills without having to touch emergency savings. This will prevent me from having to take a job that I'd hate because I'm desperate. I conservatively estimate that I can hit $36K/yr of passive income in about two years. I'll look into options and other risker investments once I reach the FI-Lite status.

To ensure a fairly stable passive income, bulk of the stocks in my non-retirement accounts are in companies in various sectors with Dividend Aristocrat statuses, healthy payout and FCF ratios, reasonable debt, and no major headwinds expected in the near future. So companies like JNJ, MSFT, VZ, GIS, etc. Around 10% are into what I call high-yield speculative but risky investments like BDCs, mREITs, etc.

Granted, by nature, dividends even from the largest and boringest companies are inherently risker than investment grade bonds, so I'll continue to keep an emergency fund to cover us for an year or so.

This is no different than how I normally play strategy games, as I usually start out defensive to build up the internal economy before taking the risk of attacking other players.
 

machsmith

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As mentioned on the other post, my retirement accounts are invested in the boring index funds. Other than rebalancing about once a year, they are set on auto pilot as I have ways to go before I hit the traditional retirement age, and since I max out my contributions every year now and also have an Army Reserve/National Guard pension that I can start drawing at 58, a mere market return will be more than enough. Thus no researching going on for these accounts

Non-retirement accounts are where I take a little more risk as messing them up won't hinder my normal retirement schedule. I read up on options but I think I'll hold off on it until I get more experience. My initial goal is more income focused; I'd consider myself to be financially independent (FI) "lite" at $36K/yr of passive non-retirement income. Because we have very little fixed expenses (no debt, house paid off), an average of $3K a month income allows us to get by comfortability in case I get laid off AND stop doing the monthly National Guard drills without having to touch emergency savings. This will prevent me from having to take a job that I'd hate because I'm desperate. I conservatively estimate that I can hit $36K/yr of passive income in about two years. I'll look into options and other risker investments once I reach the FI-Lite status.

To ensure a fairly stable passive income, bulk of the stocks in my non-retirement accounts are in companies in various sectors with Dividend Aristocrat statuses, healthy payout and FCF ratios, reasonable debt, and no major headwinds expected in the near future. So companies like JNJ, MSFT, VZ, GIS, etc. Around 10% are into what I call high-yield speculative but risky investments like BDCs, mREITs, etc.

Granted, by nature, dividends even from the largest and boringest companies are inherently risker than investment grade bonds, so I'll continue to keep an emergency fund to cover us for an year or so.

This is no different than how I normally play strategy games, as I usually start out defensive to build up the internal economy before taking the risk of attacking other players.
yup, it's all the way you wanna play the game or what you feel comfortable with. Enjoy the journey.
 

Bull Run

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I also have a coupe thousand in a roth IRA set aside, but I don't contribute to it due to no tax advantage (make more than the maximum).
Did you look into the backdoor Roth to get around the maximum? Basically, you contribute to a non-deductible IRA (no income limit) then immediately convert it to a Roth IRA after a few days after the funds clears (again, no income limit on conversions). I've done it for a few years without any issues. Only drawback to this loophole is that conversions are subjected to a "five-year rule".
 

machsmith

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super good day today, the stock i mentioned that i am big in, hit today. Their tech was validated by a purchase agreement.
Now future agreements will start coming in. I'm in for the long haul now and a majority of the risk is gone. I haven't sold, nor will I, as looking for 10% long term capital gains, and I know for a fact stock will x5+ between now and then.
 

shogun32

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the stock i mentioned that i am big in, hit today.
some kind of biotech I'm guessing? You're allowed to post symbols... And isn't one of the ways to make money to get a bunch of other people to pile into the trade, late?
 

machsmith

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some kind of biotech I'm guessing?
Not a biotech, although I made good on one of those. and will buy back before fda approval... and hopefully after offering (dilution)
 

Bull Run

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As a DCA investor, I see some issues with this article's conclusion:

"For most investors, the recent rally has been a recovery of what was lost last year. In other words, while investors have made no return over the previous eighteen months, they have lost 18-months of their retirement saving time horizon."

1. By using a straight stock price chart, this analysis ignored dividends which drives a large portion of market returns (I've seen figures of ~40% to 75% depending on the time horizon). It's unlikely that someone saving for a retirement will be cashing out the dividends only.

2. This does not account for people who continuedly invested during the dip. Even at the breakeven point, these folks would've been up.

Here's a real life example: AGNC is one of my high-yield speculative category stocks. The stock chart below shows that AGNC's still well below the pre-COVID crash price. However, I continued to invest it during the dips so I actually broke even cost basis wise today. However, this does not factor in dividends, so even if its stock price remains flat over this quarter, I'll be up around 10% via dividends.

AGNC
1609867783119.png


3. People save for retirement over decades so focusing on a 18-month period is short-sighted as the market always gained over a longer period.

"Yes, if the market corrects and reduces some of its current overbought condition without violating supports and maintaining the current bullish trend, we will miss some of the initial upside. However, we can quickly realign portfolios to participate from that point with a much higher reward to risk ratio than what currently exists."

1. Any one can say that there will be corrections or crashes in the future. Heck even I'm willing to say that. The issue is that no one can consistently time the market.

2. If I suddenly gain the ability to time the market, I'm willing to bet that I can easily become a multi-billionaire within a year. Likewise, I'm skeptic of someone who thinks that they can time the market but isn't a billionaire.

3. The best example of DCAing is 401(k)s and the number of 401(k) millionaires hit a new high, despite millions left behind by the pandemic. There's a tried and true way of becoming a millionaire over a long period of time, but yet there are many people who tries to beat the market and fail. As of 2019, only 29% of actively managed funds beat the market, net of fees. So 71% of professional investors working full time could not beat the market in 2019 so I don't see how, other than a select few, of hobbyist investors spending a fraction of the time and resources being able to beat the market.

4. Even just missing 10 best days of return results in a huge under-performance, and missing 20 or more days puts you into the loss territory. When I hear "quickly realign portfolios", I think "jump back into the market after missing the best day".

From The Motely Fool
January 4, 1999 to December 31, 2018Dollar value Annualized Performance
Fully invested (S&P 500 index)$29,8455.62%
Missed 10 best days$14,8952.01%
Missed 20 best days$9,359-.33%
Missed 30 best days$6,213-2.35%
Missed 40 best days$4,241-4.2%
Missed 50 best days$2,985-5.87%
Missed 60 best days$2,144-7.41%
 

jtmat

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As a DCA investor, I see some issues with this article's conclusion:
That is because it is an alt-right website with some financial information. Have to be careful what you read from some posters.

Your reply was great... enjoyed the read.
 

machsmith

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Awesome post Bull Run, thanks for sharing!
I haven't pulled gaines yet and my stock continues to hit new highs. so my average is 9s and price is over 30. I'm long so it doesn't matter... ill just sit tight and ride the bumps.
 

GreenS550

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I was a CFP, Broker and partner is a large investment firm.

Here is some very good and valuable advice.

- If trading stocks made more money than the market as a whole, everyone would do it. It cannot be successfully done on any longer term basis. The few exceptions made by media such as Berkshire or others are because they are long the securities and get media attention so fools buy their holdings while they liquidate. This is just media manipulation.
- Buy and hold is good but certain metrics long term prove out: PEGY and other valuations work on the macro over 1/2 the time however in the short term anything can and will happen.
- Currency is a conduit. It is the medium with which we trade goods and services for goods and services. When the govt prints money either in paper, electronically or forgiveness, it must go somewhere. The current market rise is evidence of this as there is nearly no where else to go but into stocks, bonds, commodities and real estate. Think of it as too much water saturating too small of a sponge. Pretty soon it just leaks out all over: stocks, bonds, mmkt, loan rates, real estate, gold, etc.
- ALL prosperity is labor. The proof is that commodities, not just manufactured goods, but raw commodities like gold and oil are mined or drilled for. This is labor.
- The government can never create jobs or wealth. The best they can do is reduce the costs or business to allow them to grow. Think of a plant or a kid. You can't grow them, but putting them in the right environment can help healthy and/or faster growth. Taxes and regulation are the poison a business must swallow to survive. And, for you as the investor of those businesses to make money.
- Dividends (earnings paid to the shareholder) are critical for safer growth especially in difficult market times.
- We all know diversification is important. How diversified are you?
 

machsmith

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And isn't one of the ways to make money to get a bunch of other people to pile into the trade, late?
I'm not here to pump it, otherwise I'd say what it is. I know they will come regardless of what i do or say. I'm up 30% more from the other day on it.
I actually haven't made a dime on it because I haven't cashed out on one single share and will not until after 20% capital gains. Besides, most likely be multiples higher by then too.
Market is fickle and I'm expecting many ups and downs.
 
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