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Originally Posted by DAVES
The rules of the game have changed dramatically. First of all access to information and opinion is easy to find. You mention Fidelity. They offer no commission trades. You can buy partial shares. I regularly discover what I don't know. Much is rumor and opinion. A trade of say 100 shares. It sometimes shows say 10 trades to fill an order for 100 shares. Three shares, six shares, 20 shares etc oh and all at the same tenth of a second. No commission, and no advantage to buying round lots-100 shares, makes it a whole new ballgame.
In an IRA it is supposed to be TAX FREE till you withdraw the funds and they are taxed at you regular income rate. That, right now small nuance TAX they charge you every time you sell. Ask them about this TAX and they will spin it as a FEE not a tax. A tax by any other name is still a tax. Bring it up and they may well ask if you know DAVE.
I think it was Ben Franklin who said watch the pennies and the dollars will take care of themselves.
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Yes. Those kinds of records of trades can be tedious. I always set a limit price on a trade and now I plug in “all or none” on the order. With no commissions now, I realize making the order read “all or none” might seem moot. But I just don’t want to see little batches traded within nano-seconds when I look at buy and sell histories.
I never recommend a stock — although, obviously, sometimes I do like to discuss stocks. Earlier in this thread, I did recommend playing around, just a little, with a stock to see what you really think about owning it — for real — for a more significant amount or time. (Easiest done, if possible, inside an IRA so no tax consequences for capturing a gain if you want to.)
Nobody can predict the market. I am aware that even without commissions built in and semi-hidden fees, a lot of those giving “expert” advice get paid on a percentage basis. If it’s 1% a year, they tap the account quarterly. Whether the client is making money or not, the advisor always does — obviously more when the investments are up — but never “nothing.”
Dave, I am not clear on what you mean about IRAs and the “fee” you mention. All I know is that IRAs remain tax-deferred until tapped, whether by choice or because the RMD age has been reached. That’s when the tax-hit happens. (At RMD age, using a QCD, if charitably inclined, can be a tax advantage and a good one — definitely worth learning about to consider, at least.)
I think if you hit an IRA before 59 & 1/2, there is an early withdrawal tax penalty and I am pretty sure it’s 10%. But those are the only things I know about tax consequences from an IRA. I don’t know anything about a “fee” other than the tax thing.
Anyway, thanks for the conversation.
Boomer