To them, it’s a completely nameless algorithmic dissection of order flow. They measure success over 1000s of trades and track their success rates and yield per trade, which is in the single digits.
They tell me they actually like certain meme stocks because of the volatility on them. But their strategies don’t have anything to do with the people buying/selling them as meme stocks.
There is no way to know which turd stock will pump. WSB is full of loss porn and ruined lives.
It is best to avoid this type of trade, and stick to investing over gambling.
...than you can stay solvent." - Keynes
Plenty of people have been correct on specific stocks being worthless (see: tech bubble), but were completely blown up because their shorts ripped their faces off as the mania persisted longer than they could sustain their position. The meme stocks have done the same thing in more recent times. Playing with fire even if you're ultimately right.
Ok my portfolio is slightly more complex than that, but not much. If my portfolio goes to zero, money isn’t going to be important anyways because civilization will have collapsed.
I think where I get a sour taste in my mouth is where people single track stocks and brag about individual sales. Those people, IMO, are either lucky, fortunate, or benefit from insider trading. It's what I think of when I think of "pfft, stocks are legalized gambling!"
You can probably predict some of that, I'll bet - for example, I'd bet you $5 my former company's stock will go down 10-20 pts the day after an ESPP buy, and shoot up after quarterly results.
I just feed my investment guy according to an appropriate risk plan and smile/nod that it seems reasonable. Then I bitch to high heaven every March as he gives me a 1099-DIV that blows a hole in my tax return (how do people accommodate for these, btw? Just save up?)
If you isolate just dividends, you could make (or just save up) an estimated quarterly tax payment for the dividends you make each quarter (div times marginal tax rate) You can get more complicated and look at gains and losses, and any other pieces of your income (sched C, rental prop, k-1s) that don't have withholding, and balance that out to determine an estimated liability on a regular basis (quarterly?)
but ravenium just said that he dislikes finances/doesn't understand that stuff well and you drop some schedule C/K1/rental property knowledge on him?
Next time just post, "get a road bike."
Just busting your chops Jojo. Your advice is sound.
That I didn't really drop any knowledge, I just used some fancy words to signal how much smarter I am than he is, as is par for the course in the BR (even more so on the political board.)
You could have advised him to set up an esop plan through an s Corp which would have allowed him to deduct the principal contributions while deferring and possibly eliminating taxes on the growth.
Ask me sometime about setting up a static port NAT through your firewall and we'll see who laughs!
(seriously though, thanks for at least making my brain jog a bit - I've always found money, politics, and religion to be the things i didn't discuss in polite company and NDN often suits all three!)
Do the math but then dump the money in t-bills or a high-yield money market account designated just for that purpose.
Total firm income was somehow lower last year, and because I paid the safe-harbor quarterly amounts, I wound up being owed a refund. But it looks like the IRS is paying over 7% on refunds, so it makes more sense to use money from my 4.9% savings account to pay the 1st quarter estimated taxes for this year than to apply the refund to it.
Did I miss something?
That appears to be on corporate overpayments, per the link below.
If that is the same for individuals, then yea I'd overpay and pick up the yield. Liquidity would be my only real concern here.
pay estimated. Well, I should say I should have and paid a small penalty, so uh, don't be me.
It sounds like planning to save up (via high yield - hey, CDs are going for around 5%!) for the estimated bill come April each year is the best route. I think some peoples' advisors sell to cover for them, but I don't think I'm that fancy.
but it's easier to just buy a road bike.