Too Hot Investment Thread

Which episode #'s were those? I do not believe I listened to those yet. The one episode that really got me was the concept of compound interest over standard interest.

 

017 and 018. Again, it’s stuff that only works with a small W2, but it’s amazeballs.

To summarize and way over-simplify, you could theoretically convert 30-40k* from a Traditional IRA or 401k into a Roth IRA, pay zero taxes on the conversion because of low reported income, and then you can pull that money out in 5 years without penalty.

*Edit: Updated for accuracy. You could theoretically convert up to ~25K each year.

 

or you could put money in an IRA, immediately covert to Roth...pay taxes on the conversion which should be $0 and then get the same result

 

How can you convert $30-40k with no tax? The conversion results in taxable income and anything over the standard deduction is taxed.

 

I’ve done this for the last few years after phasing above the AGI for more conventional Roth contributions.

 

@l_boy I can't seem to reply directly to your post...

I overstated that bit, and you are of course correct. It's up to the standard deduction limit (12,400 single; 24,800 married filing jointly). And as such, those numbers are of zero use to almost everyone who is covering expenses with earned wages, interest earned on bonds, rental income, or short term capital gains.

Point being, if you are able to get to a point of using LT gains or dividends as your sole income sources to finance your expenses, you can potentially convert up to ~25K from a Traditional IRA into a Roth each year, effectively never paying income taxes on that money.

 

A common tactic among aggressive savers who retire early, is to do traditional IRA /401k while working, at a higher tax bracket and later do Roth conversions when you retire early at a lower tax rate. It is theoretically possible that if you had no other income in early retirement you could convert some at effectively a 0% rate- the standard deductions amount.

The issue is that most people don't live exactly that way. They don't stop working completely, or have other income, etc

Also if one gets ACA subsidies post retirement Roth conversion income could reduce or eliminate your subsidies.

 

I haven't checked in a little bit. Really the only way to tell is by going to the marketplace and seeing what similar moments are going for. I pre-ordered another pack for $9. I plan on getting in on every pack release for a while if I can.

 

How and where do you start to get involved in these?

 

NBA Top Shot

Just create an account and sign up for e-mail updates. You can buy from the marketplace immediately or wait for alerts on pack drops.

Keep in mind the website is still in beta so there are hiccups along the way.

 

Holy shit the next Top Shot pack drop costs $1k. Way too rich for my blood.

 

I’ve 3x my money in crypto in three months. Curious to where I’ll be at the end of the year. Expecting seven figure gains but certainly not banking on it. The nature of the market makes it inherently unreliable. But this is “play” money for me.

 

Thoughts on this article on REIT's? Seems to make sense based on German experience

https://seekingalpha.com/article/4417832-might-not-be-another-chance-like-this-for-years

 

Anybody get rich off of Dogecoin yet? 69% growth day. I'm up $69!

 

Sounds reasonable. I live in a higher tax state so, although I would like to add REITs to my investment portfolio, I would prefer to not increase my tax liability

 

Coinbase coming up. Priced at 250. Read that during their teat run, the average price was around 300. Could be some potential there

 

My order @$250 never stood a chance lol.

I'll wait and let the dust settle now.

 

Me too. I tried but didn't get any. I put 260 down but still whiffed. I will wait