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it reminds me of what people do when they buy a lot of funds in their 401k without regard for creating a cohesive functioning portfolio with some kind of strategy
it reminds me of what people do when they buy a lot of funds in their 401k without regard for creating a cohesive functioning portfolio with some kind of strategy
?
The cohesive strategy is still cohesive. I've simply learned a lesson: to be mindful of any ADRs I choose regarding auto-deductions by governments from MY dividends. The stocks I've chosen cohesively represent specific market sectors in the attempt to be diversified without being "de-worse-ified." Cyclicality is just a reality. I'm certain I can live with just 4, rather than 5 single-stocks in the portfolio. And we should all try to remember that nothing lasts forever. Happy New Year.
Or were you addressing someone else?
The Market sure did vomit its way into the end of '23, didn't it?????
market gains always come over few days …it usually is fast and furious and happens when no one expects it
as i remind everyone
University of Michigan Professor H. Nejat Seyhun analyzed 7,802 trading days for the 31 years from 1963 to 1993 and concluded that just 90 days generated 95% of all the years’ market gains — an average of just three days per year. miss those few days and you hurt your return .
If you were able to miss the worst days , you would have had an incredible return .
But It is near impossible to not only reliably miss the worst days but it is just as hard to miss the worst time frame as a whole .
catching the best days is easy as pie ... just be invested . NO PREDICTING NEEDED .
Good point. There is always the unexpected, though:I bought an ADR. Global, great company, but industrial metals (aluminum) is very cyclical. it has fallen on me. I stuck with it for the dividend and was adding--- until that foreign gov't took 25% of my dividend UP-FRONT, for taxes. **** on THAT. So, while it's more recently been rising, I continue to hold it, at under 1% of portfolio total. When it climbs again to my desired price, THEN I will dump it and consolidate. I don't pay taxes to Uncle Sam, why should I pay to NORWAY?
You can take a tax credit for the foreign dividend withholdings even if you take the standard deduction. It's just a bit more work at tax time so if it's like $10 I'd just let it under the bridge but you shouldn't let it stop you from owning the stuff in a taxable account (never buy foreign ADRs in an IRA though for this reason). You qualify for the credit anyway if you own IXUS / VXUS in a taxable account.
You can take a tax credit for the foreign dividend withholdings even if you take the standard deduction. It's just a bit more work at tax time so if it's like $10 I'd just let it under the bridge but you shouldn't let it stop you from owning the stuff in a taxable account (never buy foreign ADRs in an IRA though for this reason). You qualify for the credit anyway if you own IXUS / VXUS in a taxable account.
Thanks, you're right. Except that we never owe ANY federal 1040 tax, so the foreign tax paid credit counts against zero. There is nothing to deduct that amount "against," if you know what I mean. Zero US 1040 tax due, no quarterly payments to be made. No withholding. So, I just don't like the idea of a different government doing that to me. If I was still working, yes----- I could use that foreign tax credit.
Too many unknowns We need more information…
How old are you? --> Im 28 years old.
How close to retirement? Quite far away, nothing to consider
Level of assets, debt? --> I only hold Stocks a tiny bit of crypto.
Aversion to risk? --> I would say quite high as I'm still young.
Amount of investing experience? Etc. --> Hmm not sure what the baseline is but I would say a beginner Investor who know all the basics.
This is why mutual funds were invented, they do all this work for you in selecting a much more diverse investment of stocks to match your risk tolerance and objectives. The "gut feeling" strategy may have worked this year, thanks to your IT stocks. It may doom you next year.
I would put some bonds into your portfolio.
I wouldn’t suggest bonds at his age. A diversified index portfolio of equities for the next 20 years or so.
It's always worthwhile to have some bonds, maybe 10% or 20% at his age, depending on his risk tolerance. 100% equities have higher expected returns indeed, but do not always turn out to be, and you also have to account for the emotional side of investing when one sees his portfolio drop to near nothing in a very bad year. Minor bond allocation only has a slightly lower expected return while gaining much more in stability. There may also be tax advantages if one chooses treasuries or municipals. Also what if one needs the cash for some emergency and cannot wait 20 years?
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