I plan to manage three on line accounts: a Roth for me, a Roth for my wife, and a joint margin brokerage account. After the 1st of the year, we will have enough to fully fund both Roths (4k each to cover 1998 and 1999; we can do that, right?). I plan to use a FF variant for both these accounts reallocated annually. As for the non-IRA account, we have about 24k coming from the surrender of a life insurance contract(boy, am I glad I came across the MF when I did!). I plan to use the UG5 strategy, trading quarterly to reduce trading costs. In addition, we are saving a minimum of $550 a month. I plan to put that into our UG5 portfolio when we make our quarterly UG5 trades. At some point, probably after Jan 1, 2000, we will move funds into the Roths from the UG5 port to keep those babies fully funded and do this annually when we reallocate the Roth FF stocks. Am I over complicating our situation, or does this sound reasonable? My only real concern is the regular saving portion. Is it worth it to put it into the UG5 port only to move a portion of it (4k) into the FF Roths within the same year? Any and all comments are greatly appreciated. By the way, what happened to the impending global economic meltdown I was hearing about almost daily on the news there for awhile?
I did not sit down and do the figgerin' but if you are going to trade as often as you are using the UG5 strategy, creating many taxable events, wouldn't it make more sense to do this in the Roth IRA? I mean, you wouldn't pay any tax on the sales, which are all short-term gains. I realize that you probably want to use the FF4 as a more conservative investment. But given that the UG5 is a more volatile strategy, it makes more sense to just dump the $2k as soon as possible into the Roth IRA and use the UG5 there.Zev
Am I over complicating our situation, or does this sound reasonable? My only real concern is the regular saving portion. Is it worth it to put it into the UG5 port only to move a portion of it (4k) into the FF Roths within the same year? Any and all comments are greatly appreciated.*************************************************WHOOA ! DIVERSIFY !9 stocks in a portfolio may work, 4 FF and 5 Spark5. Look at the Drip and Cash King Portfolios for possible regular savings.Phil
The problem I see with using UG5 in my Roth now is that trading costs as a percentage of the total portfolio would be too high. Eventually, yes, this would be a great place for an actively traded account given the tax deferred status. But right now I need a good strategy for investing the 24k lump sum. Another FF portfolio traded every 18 months might be a better answer, but with UG5, I think I would be more diversified. I will check out your suggestion of the Drip and Cash king portfolios for my regular savings. Thanks.
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