BeastAR
Well-Known Member
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.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...
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.
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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