Side Hustle
#691
More accurately, RH doesn't charge you to place trades. But it does sell your order information to other entities like Citadel (payment for order flow), so maybe not entirely "free." And I've heard that sometimes RH won't let you purchase a particular stock -- only sell.
A5S
A5S
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#692
Pay the tax. It's a first world problem, but using your 'retirement' account of tax avoidance is...
nevermind.
#693
#695
Line Holder
Joined APC: Jan 2019
Position: 350B
Posts: 75
If one is doing that for tax purposes, I am seriously concerned for their financial acumen. Interactive Brokers has extremely low fees for example. My other trading account is with Ally. I have shorted there before (too tense for my taste, but have at it). Low fees/ no commissions.
Pay the tax. It's a first world problem, but using your 'retirement' account of tax avoidance is...
nevermind.
Pay the tax. It's a first world problem, but using your 'retirement' account of tax avoidance is...
nevermind.
#697
Line Holder
Joined APC: Jan 2019
Position: 350B
Posts: 75
Yeah, I would never want a balanced portfolio of stocks, bonds, mutual funds, ETFs with various strategies to include options. I certainly wouldn’t want to have it in a tax advantaged retirement account. This probably isn’t going to work out.
#698
Gets Weekends Off
Joined APC: Sep 2019
Posts: 1,538
I think there is a misunderstanding here. He believes you are talking about actively trading in a retirement account which is what the original question seemed to be asking. Actively day trading in a retirement account would be the ultimate example of a bad idea.
#699
Gets Weekends Off
Joined APC: Apr 2018
Posts: 3,191
Not understanding the logic here....maybe you guys can help me out.?
Let's start at the beginning....there are 2 choices. If I trade stocks, I can make money or I can lose money.
If i think I will lose money.... the prudent person says "I would be foolish to trade in any account(tax advantaged or not) therefore I won't invest".
The other option is you think you will make money. Therefore, how much can I make after taxes.? Day trading will be short term capital gains. So, 35% federal(marginal) combined with 13% state(Cali) and 4% Obamacare tax....viola you get to keep less than 50% of your expected gains......unless you have it in a tax advantaged account
Not advising to do it.....but I can easily see there are reasons where it MIGHT be appropriate
Kinda like market orders....Lots of volume, 1 cent spread between bid/ask?....let her rip. Had that 1 cent price on a limit order cost me when trying to get a fill over a penny improvement. Then I chased it. There are certainly generalization that work, there are also exception to the rule.
Most advisors say to get risk averse as you near retirement....I contend that might be where you push it up(on the risk spectrum) if you are investing money that you don't logically envision ever needing.
Not trying to pick nits....only offering alternate "logic"
#700
Gets Weekends Off
Joined APC: Sep 2015
Position: UNA
Posts: 4,417
why? If you have 5 years til retirement and that will be your main source of income in retirement that’s one thing, but if you have 20, 30, or more years to go, what’s the harm in day trading with a % of that money? I don’t do this but I fail to see why this is “the ultimate example of a bad idea” (assuming you can afford the losses)
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