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re: Single Stocks in a Roth IRA?
Posted on 10/6/21 at 4:49 pm to GeneralLee
Posted on 10/6/21 at 4:49 pm to GeneralLee
quote:
Indexing was so pre March 2020 for me. Not sure if I can ever go back….
Maybe. I imagine when the market corrects people won't find stock picking so easy as has been the past 18 months. Of course, that could be never.
This post was edited on 10/6/21 at 4:50 pm
1
Posted on 10/6/21 at 4:56 pm to 601_fox
I've got 3 stocks, 2 CEFs, a balanced fund, and original issue TIPS in mine that have doubled, it is a very sizable Roth. The thing with having stocks or equity ETFs in Roth instead of taxable is you lose the capacity to take loss carry forwards which can come in handy in later years.
Posted on 10/6/21 at 5:05 pm to Teddy Ruxpin
quote:
I imagine when the market corrects
I think we've already seen quite the correction in growth stocks since February... God help us if we haven't!
Posted on 10/6/21 at 5:22 pm to GeneralLee
I've definitely seen some crying on here.
But man, for awhile there you couldn't miss it seemed, from my lazy thread reading at least.
Posted on 10/6/21 at 5:37 pm to Teddy Ruxpin
Yeah from March 2020 to January 2021 it was literally shooting fish in a barrel. To be honest, this would probably be the best strategy: Index funds during "normal" times, then ditch the index funds and go bottom feeding during huge market crashes (2008, 2020) and then go back to indexing once those stocks revert closer to their long term averages.
Posted on 10/6/21 at 9:05 pm to 601_fox
I actually think there are a lot of situations where it’s more preferable to have individual stocks in a retirement account (whether tax-deferred or tax free) as they naturally lend themselves for more taxable events (selling gains especially short-term, options trading specifically for income, dividend stocks, etc.) that you don’t have to worry about.
In addition, one of the disadvantages of those accounts are the lack of margin or portfolio-margin that you can get in a taxable account; however, margin can be much riskier with single stocks and/or the margin requirements may even be more stringent (i.e., risk-based portfolio margin) so besides their tax-efficiency, using index funds (especially the VOO/VTI broad funds) in a taxable account can make borrowing on margin less risky as well.
In addition, one of the disadvantages of those accounts are the lack of margin or portfolio-margin that you can get in a taxable account; however, margin can be much riskier with single stocks and/or the margin requirements may even be more stringent (i.e., risk-based portfolio margin) so besides their tax-efficiency, using index funds (especially the VOO/VTI broad funds) in a taxable account can make borrowing on margin less risky as well.
Posted on 10/6/21 at 10:41 pm to 601_fox
I have Apple, SLI, Etsy, PayPal and Caterpillar in mine along with the TQQQ ETF and some mutual funds.
Posted on 10/7/21 at 10:51 am to GeauxTigers777
I’m most likely leaving money to my kids. Roth goes to them tax free. Just simpler. It less than 10% of my portfolio, so it’s not my biggest holding.
Here is a better article on the reasoning.
Withdrawal Strategy
Here is a better article on the reasoning.
Withdrawal Strategy
This post was edited on 10/7/21 at 10:54 am
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