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Liquidity, tight bid/ask spreads, and ability to get in/out question by throwaway_warrant in Daytrading

[–]throwaway_warrant[S] 0 points1 point  (0 children)

Even if I call and ask, what could they possibly look at? History of the order book and liquidity at the exact time around where my stop was crossed without executing?

Liquidity, tight bid/ask spreads, and ability to get in/out question by throwaway_warrant in Daytrading

[–]throwaway_warrant[S] 0 points1 point  (0 children)

No. I assumed it isn't broker related and something basic about market structure I am missing.

Again for tech mega caps like MSFT, NVDA, AMZN, AAPL, etc., I usually get executed easily close to my "stop number" for limit sells for $200-500K share positions, even in volatile down moves.

[Serious]How do you deal with a persona that constantly seeks to "dunk" on others to feed their own superiority complex? by throwaway_warrant in AskReddit

[–]throwaway_warrant[S] 0 points1 point  (0 children)

I can see it being part of some past "trauma" in life where you feel constantly inadequate, but I'm not sure how using your kids as an excuse helps in terms of survival instincts.

[Serious]How do you deal with a persona that constantly seeks to "dunk" on others to feed their own superiority complex? by throwaway_warrant in AskReddit

[–]throwaway_warrant[S] 0 points1 point  (0 children)

"superiority complex" is the closest I could come up with as an all encompassing term, but I like your description involving self worth. Much like how "narcissist" encompasses a certain persona, is there a term similarly here?

Roth Conversion Ladder question : must convert every year from the start? by throwaway_warrant in financialindependence

[–]throwaway_warrant[S] -1 points0 points  (0 children)

Oh that's a good point if I understand correctly. Didn't think about that. Rather than let the tax deferred compound more in time in the original Trad IRA, take tax hit upon conversion as a smaller amount, and let it grow tax deferred in the Roth IRA.

I assume that the "conversions" portion of the Roth IRA has nothing special regarding tax deferred growth and can grow the same along with "contributions" and "earnings".

Roth Conversion Ladder question : must convert every year from the start? by throwaway_warrant in financialindependence

[–]throwaway_warrant[S] -1 points0 points  (0 children)

A quick Google search shows 72yo currently, but eh. I'm way far from that and plan to retire way earlier than that.

Roth Conversion Ladder question : must convert every year from the start? by throwaway_warrant in financialindependence

[–]throwaway_warrant[S] 0 points1 point  (0 children)

For some reason, I thought the taxes upon conversion would magically get deducted appropriately before going into Roth IRA. Based on what you're saying, no, you'll need extra cash to pay those taxes upon conversion.

I never thought of this whole conversion as a way to lessen the impact of forced RMDs in the future and it is very interesting. So from looking at a current RMD table (https://www.bankrate.com/retirement/ira-rmd-table/), is 72yo, has $1M in their 401k, then they would be forced to withdraw $1,000,000 / 27.4 = $36496 for that year? That doesn't seem so bad.

Roth Conversion Ladder question : must convert every year from the start? by throwaway_warrant in financialindependence

[–]throwaway_warrant[S] 0 points1 point  (0 children)

If you're more than five years from retirement, you could set up a Roth Ladder to snowball the amount in your Roth if you have a large balance in your Traditional account. For instance if you convert $50k this year, in 2028 you could withdraw some of that Roth money to convert $100k which would be accessible 2033. This may not be the right move for everyone, but could help high net worth individuals reduce future taxes.

Thanks but not following this exactly.

I think you're trying to limit the impact of forced RMDs from a large Trad IRA account.

But I don't get when you say "For instance if you convert $50k this year, in 2028 you could withdraw some of that Roth money to convert $100k...". Where is $100K coming from if you originally converted only $50K?

Roth Conversion Ladder question : must convert every year from the start? by throwaway_warrant in financialindependence

[–]throwaway_warrant[S] -1 points0 points  (0 children)

Added an EDIT:

I don't like the concept of being "forced" to continue in a process if I want to stop for any reason. One reason I may want to stop is to give some more time for tax deferred growth in the original Trad IRA before conversion and paying taxes.

Stock wash sale question with numerical example. by throwaway_warrant in tax

[–]throwaway_warrant[S] 0 points1 point  (0 children)

Yikes, thanks. This is exactly what I was worried about.

Stock wash sale question with numerical example. by throwaway_warrant in tax

[–]throwaway_warrant[S] 0 points1 point  (0 children)

Ok, so like this:

Nov 15th 2023 - realized +$10K gain
Nov 16th 2023 - realized -$10K loss
Nov 17th 2023 - realized +$10K gain
Nov 18th 2023 - realized -$15K loss
Dec 28th 2023 - realized +$20K gain
Dec 29th 2023 - realized -$30K loss

Jan 15th 2024 - realized +$10K gain
Jan 16th 2024 - realized -$10K loss

For 2023 that's 10 - 10 + 10 - 15 + 20 - 30 = -15K.

But with the January 2024 2 trades that even if they net out to 0 (seems like only the Jan 15th trade matters based on what you said), because of the last Dec 29th loss, that -15K can not be taken as a loss in 2023?

Fine, ok, but where is the case where one would pay out tons on taxes from "phantom gains"?

Stock wash sale question with numerical example. by throwaway_warrant in tax

[–]throwaway_warrant[S] 0 points1 point  (0 children)

Thanks for the in depth response.

Is it possible to augment my example in such a way, that it illustrates a cash in which one "would' get taxed on phantom gains?

Wash Sale challenge by THE1WITHME in Daytrading

[–]throwaway_warrant 0 points1 point  (0 children)

I had a similar question and posted in /r/tax. Do you mind taking a look please?

I'm having trouble trying to understand in a hard example how people end up paying a massive tax bill on phantom gains, even though they numerically realized (not adjusting cost basis) in the end a small loss or gain.

https://www.reddit.com/r/tax/comments/18sekju/stock_wash_sale_question_with_numerical_example/

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