OT - Dow plunges 1,175 - worst point decline in history

[oldpotatoe]

Originally Posted by oldguy00

We have some cash being freed up in the next few days from the sale of a property....figure I can probably get some good stocks on sale.
Anyone see Exxon's dividend is at like 10%?? Might have to get in on that..

I wouldn't do anything until after the election...

[mg2ride]

Originally Posted by oldpotatoe

I wouldn't do anything until after the election...

With the market everything is a guess, but I'm hopeful that the correction over the last few weeks is also the pre election pull out.

[Clean39T]

Originally Posted by oldpotatoe

I wouldn't do anything until after the inauguration

Fixed it for you. We're in for a bumpy ride.



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[likebikes]

this thread is so weird to me. twice a month, every month, money is auto deducted from my checking account and transferred to brokerage according to my preset investment allocations. it’s not a lot as i’m trying to pull myself up out of poverty by my own bootstraps, but it’s something.

i don’t think about it ever, nor do i look at it.

[Slamcarneyson]

Originally Posted by likebikes

this thread is so weird to me. twice a month, every month, money is auto deducted from my checking account and transferred to brokerage according to my preset investment allocations. it’s not a lot as i’m trying to pull myself up out of poverty by my own bootstraps, but it’s something.

i don’t think about it ever, nor do i look at it.

Same...I just started a MF with Fidelity like 4 days ago because the interest on a regular savings account is terrible. Hopefully the money in MF is fine? Im not a finance guy by any means, but hopefully markets don't collapse with my meager earnings.

[akelman]

Originally Posted by likebikes

this thread is so weird to me. twice a month, every month, money is auto deducted from my checking account and transferred to brokerage according to my preset investment allocations. it’s not a lot as i’m trying to pull myself up out of poverty by my own bootstraps, but it’s something.

i don’t think about it ever, nor do i look at it.

By this logic, the whole site is weird. Most people really don't care very much about bikes. And yet, here we all are, talking about them all the damn time, every day for years and years and years. People's tastes are downright inexplicable!

[echappist]

Originally Posted by likebikes

this thread is so weird to me. twice a month, every month, money is auto deducted from my checking account and transferred to brokerage according to my preset investment allocations. it’s not a lot as i’m trying to pull myself up out of poverty by my own bootstraps, but it’s something.

i don’t think about it ever, nor do i look at it.

Originally Posted by Slamcarneyson

Same...I just started a MF with Fidelity like 4 days ago because the interest on a regular savings account is terrible. Hopefully the money in MF is fine? Im not a finance guy by any means, but hopefully markets don't collapse with my meager earnings.

That's perfectly fine and commendable. Basically the Boglehead approach (to which I largely subscribe).

But at the same time, there isn't a lot of value in the current equity market, and whatever gains in prices are mostly driven by dearth of return elsewhere. If that doesn't concern you, then bravo. But it is a bit disconcerting to me (even as I make pre-allocated biweekly contributions via payroll deduction).

[jimcav]

Originally Posted by oldguy00

We have some cash being freed up in the next few days from the sale of a property....figure I can probably get some good stocks on sale.
Anyone see Exxon's dividend is at like 10%?? Might have to get in on that..

I'm trying to find out more on Qualified Opportunity Funds (QOF) that invest in Qualified Opportunity Zones. You have 180 days from when you realize your capital gains on the property.

It allows you to take your capital gains, invest it in the QOF, and you then delay the taxes you owe until 2026, but also reduced by 10%. If you keep the investment there for 10 years, then anything you make owns NO taxes at all on the gains.

Problem for me is QOFs are very new, most only got going in 2019, and I am having trouble finding out much about them. IF anyone has any advice on them, I'd appreciate it.

[SlackMan]

Originally Posted by oldpotatoe

I wouldn't do anything until after the election...

Agreed. It's hard to see the market not falling around the election. Uncertainty will be off the charts both before and after, regardless of the winner.

[Davist]

My concern is that in the US, we basically have to finance our own retirements, and when the powers that be decide to print $ trillions, they dilute our retirement funds faster than the market can gain them back. ONE thing we can count on from either party is spending, regardless of which of the duopoly you choose. And yeah, no other place to put money right now.

[bronk]

Originally Posted by akelman

By this logic, the whole site is weird. Most people really don't care very much about bikes. And yet, here we all are, talking about them all the damn time, every day for years and years and years. People's tastes are downright inexplicable!

Ding ding ding. We have a winner.

[adub]

Originally Posted by Davist

My concern is that in the US, we basically have to finance our own retirements, and when the powers that be decide to print $ trillions, they dilute our retirement funds faster than the market can gain them back. ONE thing we can count on from either party is spending, regardless of which of the duopoly you choose. And yeah, no other place to put money right now.

You get it. Printing money is a de facto tax increase.

[prototoast]

Originally Posted by jimcav

I'm trying to find out more on Qualified Opportunity Funds (QOF) that invest in Qualified Opportunity Zones. You have 180 days from when you realize your capital gains on the property.

It allows you to take your capital gains, invest it in the QOF, and you then delay the taxes you owe until 2026, but also reduced by 10%. If you keep the investment there for 10 years, then anything you make owns NO taxes at all on the gains.

Problem for me is QOFs are very new, most only got going in 2019, and I am having trouble finding out much about them. IF anyone has any advice on them, I'd appreciate it.

Hi, I've been researching all things Opportunity Zones for the past year, and should have a report coming out in the next month or so.

To invest in a QOF, you're generally going to have to be an accredited investor (so net worth of >$1 million or $200k annual income), and you're going to need to have capital gains.

You're right, it is hard to get good information on the funds. The specific funds are all new because the program is new, though some are managed/affiliated with entities that have been managing funds for much longer. Novogradac has the most comprehensive listing of funds out there, but their list is still incomplete. Still, if you reach out to funds on the list, you may be able to get more information.

https://www.novoco.com/resource-cent...-funds-listing

Investments in Opportunity Zones thus far have been principally real estate, and the investors tend to be experienced real estate investors. While the tax benefits can be quite good, it is important to remember that investing in a QOF is not like investing in ETFs, mutual funds, or publicly traded stocks. Your money will likely be tied up for 10 or more years, and will likely all be tied up in a single project without any within-fund diversification. Many of these funds may be completely new to fund management. That's why you have to be an accredited investors--you're expected to have some level of sophistication, and also resilience if the fund goes bust.

To narrow down your search, you may want to think about what kind of projects you want to invest in? Do you want to invest in residential real estate, commercial real estate, operating businesses? Do you specifically want to do any "impact investing" or just search out the highest return? You need to figure out what you want out of the program, and how much you're able/willing to invest before you can find a fund that aligns with your goals.

*standard disclaimer, I am not a lawyer, accountant, or registered investment advisor--I am not making any specific recommendations for you, or advising you on what would be best for your specific circumstances. I am only providing you information about the program so you can make more informed decisions for yourself.

[oldpotatoe]

Originally Posted by Clean39T

Fixed it for you. We're in for a bumpy ride.



Sent from my Pixel 2 XL using Tapatalk

Yup, well said...

[reuben]

Originally Posted by Slamcarneyson

Same...I just started a MF with Fidelity like 4 days ago because the interest on a regular savings account is terrible. Hopefully the money in MF is fine? Im not a finance guy by any means, but hopefully markets don't collapse with my meager earnings.

Some banks, such as Capital One (360), and ally bank, have accounts that pay (or at least paid) considerably more than other banks, with few or no restrictions. There was at least one other but I can't think of the name now.

I put a bunch of money into a Capital One 360 savings account about a year ago. You'd have to check the rates now to see how they compare. I'm pretty sure the rates they pay have gone down, but they're probably still a lot more than a typical brokerage would pay for your cash.