Fair point. Maybe the surge scared some other shorts out who didn’t get margin called or whatever but decided the risk was no longer worth it and covered.
If it went back up and stayed up, imo that’s the work of longs. Had it only gone up due to shorts panic-buying, in theory it would have fallen back down to what the market actually believed to be fair fundamental value.
CNBC on in the poker room…
MEME STOCK MANIA RETURNS
The DWAC/TMTG merger has been cleared by the SEC and is being put to a shareholder vote. I was under the impression that this meant it’s now a lock to happen, but people are saying it’s not (but aren’t providing reasons). Anyone here know why it might not happen?
Like who the hell would vote for their $45 ticker to drop back to $10? I’m obv missing something.
It made 25% for me and was stable while everything else has been going down this month.
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Are you saying you specifically sold the shares that had a lower cost basis? That sounds less than tax optimal.
IRA, doesn’t matter. I’m not rich enough to have money invested outside retirement accounts.
I think some people are reluctant to put money into retirement accounts because they might need it before retirement – say for a house down payment, or whatever. So they put it in regular brokerage accounts instead. Those people should be making contributions to Roth IRAs.
I am confident about this because the withdrawal rules for Roths are very friendly. Suppose you contribute 10k to a Roth, it grows to 15k, and then you want to take 10k back out. This is tax and penalty free. The withdrawal is not pro-rated – contributions come out first. Since Roth contributions are after tax dollars, there is nothing to tax in that 10k. Taking out the gains early can be a problem but even there tons of exceptions exist to avoid penalties.
So I have 60 days to complete a transfer from one IRA to another, right?
Situation…
I have $10,000 in a Roth IRA at Brokerage A, and $10,000 in a regular brokerage account at Brokerage B. I open a Roth IRA at Brokerage B, withdraw $10,000 from the Roth IRA at Brokerage A, immediately take $10,000 from the regular brokerage account at Brokerage B and move it to the Roth IRA at Brokerage B. I then move the $10,000 from Brokerage A into the regular brokerage account at Brokerage B.
All good, right?
As far as the IRA transfer goes, sure. The selling and buying from the brokerage will trigger a taxable event though and you want to be careful to avoid a wash sale. I’m assuming the transfer from brokerage to IRA involves liquidating whatever you’re holding and transferring cash. I’m not sure if directly transferring stocks is possible and if so what the tax implications would be. Probably would be equivalent to selling though, the IRS isn’t just going to allow you to make your cost basis disappear by moving it to a tax sheltered account (that loophole is reserved for rich people trading real estate).
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The brokerage account is just in BIL and hasn’t been in it for long (was just sitting there in cash when the interest rate was reasonable), so I’ll trigger a taxable event but it should be miniscule. Nothing will be at a loss, so it shouldn’t be a wash sale.
Didn’t know what a wash sale was, though, good to know for the future.
Much easier way to do it is custodian to custodian direct transfer.
That sounds like a nightmare. Just do an ACAT.
Yes, see my horror story from the personal finance thread trying to take custody of my funds during a transfer:
Unrelated to the current discussion but to update on my personal struggles:
The 7-10 days they quoted was bullshit, I never heard back. Someone responded to the CFPB complaint initially but then ghosted me for over a week. I went online to get my tax forms to start running through the implications of what my return would look like with this mess and I noticed they put my old address on the form. I moved last June, updated my addresses with everyone ASAP back then, and confirmed that my profile was showing my new address before I closed my HSA, because obviously I don’t want them sending a check for tens of thousands of dollars to whoever lives at my old apartment now. But that’s what they did. I wrote back to the person who was handling my CFPB complaint asking her to look into the address issue but she was still ghosting me, I called customer service again and asked if they could confirm what address they mailed the check to and they were like oh yeah we sent that to your old address. So finally after almost two months I’ve got my check, still waiting another week for my bank to clear the funds though. I think I’ll be OK on the tax front but I’ve missed out on a 10% rise in the SP500 and counting.
Moral of the story, don’t take custody of your money during a transfer and don’t ever open an Optum HSA. If I ever get back on a HDHP I’ll make my own contributions before I open another Optum account.
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Easier, but slower, right?
just got this, mashing buy I think
No, almost certainly easier and faster
I figured the fastest way to get money into the new Roth was to move it from an account with that same brokerage, should be instantaneous right?
Think spidercrab is the IPO wizard. I had one awhile back for a doctor website I was user of and he said actually looked pretty good and I got an immediate +90% when it opened for trading
Interesting Money Stuff today: Put the Money in the BOXX (unfortunately couldn’t find a non-paywall link, but what are you doing with your life if you aren’t already getting this by email every day), mostly talking about this article (non-paywall):
tl;dr: get short-term treasury rate returns on an ETF, which you can sell for capital gains rates instead of earning interest income at normal tax rates.
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