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Let's talk about investing! Stock market, ETF, etc.


Springfield

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Posted (edited)
5 hours ago, mcsluggo said:

i purposely don't look at all.... but when the market is surging i WANT to pull some out to be able to shove it back in after the correction.   but i know i am lazy and i will mess up timing, so i just let it ride

 

 

The thinking is to rebalance periodically between equities and fixed income to get back to your desired level of risk, i.e. sell equities and put the money into bonds/cash (which you could then use after a drop in the stock market to buy again if you again crossed a risk threshold). If you do this in your tax-advantaged accounts (Roth, 401k, IRA) there's no tax consequence. If it's in a taxable brokerage account it's a tougher call to make but at least you could redirect dividend reinvestment from equities to fixed income as you are paying tax on that anyway.

 

5 hours ago, mcsluggo said:

that looks a bit more .....sexual ..... than intended.   sorry mom

 

You'll get to the point where vigorous sexual activity is less attractive than taking out the profits in used bills and rolling around in them naked on your bed.

Edited by Corcaigh
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