Couple IRA questions...

[.Shane.]

Ok,

A couple questions about my IRA and maybe one about investments in general.... Granted there are only about 3 people whom I know and trust to be qualified to answer these, but we'll see who shows up.

1. Recommend me a mutual fund that complements these others: Janus Enterprise, J Global Technology, J Venture. I hold all these in about equal values and am looking for a 4th to be held in similar value (roughly speaking, 25% each). This is via Schwab so any brand is fine. I'm expecting to not need this money for another ~20 years at least.

2. Actually, this is more my #1 question. In my IRA I have some "loose change", so to speak, sitting in some money market type stuff. I hate monitoring this stuff... so, my question: Do you think the market is gonna dip anymore due to the housing "problem" or is it about as low as you, roughly, expect? Meaning, should I put this money into a mutual fund now (question 1) or wait?

3. Another alternative is to cash it out to pay some debt. I know that takes a big tax hit. The question is: Can you "wash" that tax hit against a loss from a non-IRA investment? Or, even if the loss covers the IRA "profit" do you still pay some kind of premium tax? If it doesn't wash, I'm not gonna "cash it out". I don't need it THAT bad. But, I was hoping it would be a good way to pay off some debt and discharge some bad investments.

4. In my IRA I picked a couple stocks that I've "gotten lucky" with. How does the untrained investor like myself know when to sell? Should I count my blessings, cash out, dump the $$ in my mutual funds and quit thinking about it?

I realize that the real course of action would be to hire an advisor, but I'm not that well off and I trust the couple people I respect on this forum more than the Schwab random I'd get if I called in.

 

[Whomp]

You have no pure international. I own a few but one that's all weather through thick and thin is WASYX. These guys are holding a lot of cash, gold and are short US/German indexes but long US/German stocks. I don't own any of the funds you mentioned but what style box do they fit in?

2. Dollar cost average never hurts. Valuations in the US aren't out of hand and companies that export are showing great momentum. Think big and overseas sales when looking domestic. Financial Services are already in recession so avoid.
3. I don't understand the question. Are you talking about withdrawing from an IRA? The penalty is 10% and your marginal tax rate. Pretty stiff and no way to offset except to say you're paying back against a bad debt...
I think I've made my opinion clear on bad debt though. I think adjusting the budget as painful as it is would be a better option and stop adding to a 401k (403b) till you right the ship.

If you did withdraw from the IRA I'd take some now in December and more in January so you're spreading out the tax over two tax years.

4. No. Realize that Arch Coal will be cyclical like all other resource based businesses. On Apple realize that the shares are not cheap but if you've seen the Apple Stores are packed and iPod and iPhone are starting to translate into Macs. This is very different.

Don't trust the Schwab random.

 

[Ecofarm]

Sell everything. Buy booze and hookers. Invite your friends.

 

[.Shane.]

1. You have no pure international. I own a few but one that's all weather through thick and thin is WASYX. These guys are holding a lot of cash, gold and are short US/German indexes but long US/German stocks. I don't own any of the funds you mentioned but what style box do they fit in?

I don't recall the mix, but I don't think I'm represented in international. Plus, thinking about my question "2", I suspect the international market is that affected by what is happening in the US real estate market. (I'm sure its affected some, but its not tied to it like some other sectors seem to be tied together)

2. Dollar cost average never hurts. Valuations in the US aren't out of hand and companies that export are showing great momentum. Think big and overseas sales when looking domestic. Financial Services are already in recession so avoid.

Well, I'm thinking the US market is not going to be going up for at least another year, so I was thinking of just going some other route, but I think, per the answer to 1, I'll do international.

3. I don't understand the question. Are you talking about withdrawing from an IRA? The penalty is 10% and your marginal tax rate. Pretty stiff and no way to offset except to say you're paying back against a bad debt...

I think I've made my opinion clear on bad debt though. I think adjusting the budget as painful as it is would be a better option and stop adding to a 401k (403b) till you right the ship.

If you did withdraw from the IRA I'd take some now in December and more in January so you're spreading out the tax over two tax years.

Well, let me be more blunt. I have an investment that I've lost $$X on. If I take a withdrawal from my IRA of, say (50% of $$X) will the fact that I have a loss to balance against negate the taxes I'd pay on the IRA withdrawal? Or are the IRA withdrawals fees to be paid "no matter what"?

Don't worry, at this point, I most likely won't do it. While my ship isn't "righted" it is no longer taking on water and has been bailing water for some time.

4. No. Realize that Arch Coal will be cyclical like all other resource based businesses. On Apple realize that the shares are not cheap but if you've seen the Apple Stores are packed and iPod and iPhone are starting to translate into Macs. This is very different.

Well, my problem is that they've both done well. My problem is I knew enough to understand they were good buys at the time. I do NOT know enough to understand whether now is the best time to sell. My inclination is to keep Apple because I don't see how that is going to go bad for at least another year or so. I think I'll see Arch because its at a peak and I don't have that same comfort level. Though, maybe so long as oil climbs keep it?

/shrugs shoulders

Don't trust the Schwab random.

Yeah, they strike me as scrubs just out of college.

 

[MjM]

I thought this would be about the Irish Republican Army.

 

[.Shane.]

I thought this would be about the Irish Republican Army.

Ah, sorry to disappoint. All I can offer is that in the 70s my dad was friendly w/ someone who claimed to help support the IRA w/ money. /shrug

 

[Whomp]

I don't recall the mix, but I don't think I'm represented in international. Plus, thinking about my question "2", I suspect the international market is that affected by what is happening in the US real estate market. (I'm sure its affected some, but its not tied to it like some other sectors seem to be tied together)

Well, I'm thinking the US market is not going to be going up for at least another year, so I was thinking of just going some other route, but I think, per the answer to 1, I'll do international.

Don't overdo it. There's a lot of money being made by US exporters too.

Well, let me be more blunt. I have an investment that I've lost $$X on. If I take a withdrawal from my IRA of, say (50% of $$X) will the fact that I have a loss to balance against negate the taxes I'd pay on the IRA withdrawal? Or are the IRA withdrawals fees to be paid "no matter what"?

Unfortunately, you can't write off a loss in a IRA so it doesn't matter what you lost. If you withdraw $10,000 then you'll pay 10% penalty plus your marginal tax rate (and Cal tax too). Bad, bad deal.

Well, my problem is that they've both done well. My problem is I knew enough to understand they were good buys at the time. I do NOT know enough to understand whether now is the best time to sell. My inclination is to keep Apple because I don't see how that is going to go bad for at least another year or so. I think I'll see Arch because its at a peak and I don't have that same comfort level. Though, maybe so long as oil climbs keep it?

I think Apple's situation right now is a case of enormous momentum. They seem to have "it" right now. Arch and energy as a whole has had a huge run. If you're negative on the US you should be negative on energy too. They tend to go hand in hand.

Yeah, they strike me as scrubs just out of college.

If they're good they get promoted to manager.

 

[.Shane.]

Don't overdo it. There's a lot of money being made by US exporters too.

The amount I'm dealing with here is about 8-10% of my IRA. So, I think that's reasonable.

Unfortunately, you can't write off a loss in a IRA so it doesn't matter what you lost. If you withdraw $10,000 then you'll pay 10% penalty plus your marginal tax rate (and Cal tax too). Bad, bad deal.

Ok, I thought that was the deal. As I said, I'm not gonna do it, anyway, at this point.

I think Apple's situation right now is a case of enormous momentum. They seem to have "it" right now. Arch and energy as a whole has had a huge run. If you're negative on the US you should be negative on energy too. They tend to go hand in hand.

Ok, I think I'll dump Arch, and use it w/ some spare $$ toward the intn'l MF you named. I'll hold Apple for another quarter or so and see what happens.

If they're good they get promoted to manager.

TBH, they're always helpful and professional, but I wouldn't want to trust decisions that are either long-term or involve significant $$$ to them.

Thanks Whomp!

Find me in chat sometime.

 

[JerichoHill]

.Shane.

A couple questions about my IRA and maybe one about investments in general.... Granted there are only about 3 people whom I know and trust to be qualified to answer these, but we'll see who shows up.
How Ya Doing? Happy New Year!

1. Recommend me a mutual fund that complements these others: Janus Enterprise, J Global Technology, J Venture. I hold all these in about equal values and am looking for a 4th to be held in similar value (roughly speaking, 25% each). This is via Schwab so any brand is fine. I'm expecting to not need this money for another ~20 years at least.
If you want to stay with a Janus Fund, try their Contrarian. https://ww4.janus.com/Janus/Retail/FundDetail?fundID=89 It hasn't done that great this year(what has?), but I put my wife into it several years ago. For an actively managed fund that attempts to hedge and beat the market by betting willy nilly, its fee is reasonable and its manager pretty competent.

I'd also suggest the following vanguard index funds:
https://personal.vanguard.com/us/funds/snapshot?FundId=0861&FundIntExt=INT"]
https://personal.vanguard.com/us/funds/snapshot?FundId=0533&FundIntExt=INT"]
https://personal.vanguard.com/us/funds/snapshot?FundId=0079&FundIntExt=INT"]



2. Actually, this is more my #1 question. In my IRA I have some "loose change", so to speak, sitting in some money market type stuff. I hate monitoring this stuff... so, my question: Do you think the market is gonna dip anymore due to the housing "problem" or is it about as low as you, roughly, expect? Meaning, should I put this money into a mutual fund now (question 1) or wait?
I don't personally believe in timing the market. However, saying that, the market's pretty low. When everyone is running, that's a good time to get in. I'd put it in now as long as your time perspective is say, a decade

3. Another alternative is to cash it out to pay some debt. I know that takes a big tax hit. The question is: Can you "wash" that tax hit against a loss from a non-IRA investment? Or, even if the loss covers the IRA "profit" do you still pay some kind of premium tax? If it doesn't wash, I'm not gonna "cash it out". I don't need it THAT bad. But, I was hoping it would be a good way to pay off some debt and discharge some bad investments.
I don't advise cashing out an IRA. I don't see it washing, the tax implications are pretty bad.

4. In my IRA I picked a couple stocks that I've "gotten lucky" with. How does the untrained investor like myself know when to sell? Should I count my blessings, cash out, dump the $$ in my mutual funds and quit thinking about it?
Bingo. Exactly. Get your pretax and posttax savings into mutual funds and automate the deposits. Then, if you want to invest in stocks with gambling money, I recommend using Motley Fool's "Foolish Four" method
http://www.fool.com/school/dowinvesting/dowinvesting.htm


I realize that the real course of action would be to hire an advisor, but I'm not that well off and I trust the couple people I respect on this forum more than the Schwab random I'd get if I called in.
That, and our fees are much more reasonable! Good luck and please let me know how I can help you. If you are looking for good financial advice, please check outhttp://getrichslowly.org/blog. I am JD's site admin, who's blog is one of the most popular PF blogs on the web.

 

[JerichoHill]

Huh, Go team Whomp and JH. Not only do we kick butt in Civivor, but we both diagnosed Shane's IRA problem..international exposure!

 

[.Shane.]

Huh, Go team Whomp and JH. Not only do we kick butt in Civivor, but we both diagnosed Shane's IRA problem..international exposure!

Well, tbh, you were the 2 I was hoping would reply here, at a minimum. Your fees are much more reasonable.

Happy NY to you both.

I'll try and reply to your lengthier post a bit later.

 

[JerichoHill]

Yeah, well, bookmark my darn site!

 

[Whomp]

Huh, Go team Whomp and JH. Not only do we kick butt in Civivor, but we both diagnosed Shane's IRA problem..international exposure!

Financial advice and razed cities. What a combo!

Well, tbh, you were the 2 I was hoping would reply here, at a minimum. Your fees are much more reasonable.

Happy NY to you both.

I'll try and reply to your lengthier post a bit later.

And a prosperous 2008 to everyone!!