Market

[Viking]

I'm still in the office. Market is a mess. What concerns me most isn't direction (it's going to struggle for a while) but the velocity with which this might come undone. I lived through 2008 and it was awful but it was death by a thousand cuts.

Those of us who lived through it are less likely to sit around and wait. We took action Jan 12 and have been on a buyers strike since.

Spain is worrisome. So is California. I'd take bank defaults over sovereign problems any day.

[byu71]

I'm still in the office. Market is a mess. What concerns me most isn't direction (it's going to struggle for a while) but the velocity with which this might come undone. I lived through 2008 and it was awful but it was death by a thousand cuts.

Those of us who lived through it are less likely to sit around and wait. We took action Jan 12 and have been on a buyers strike since.

Spain is worrisome. So is California. I'd take bank defaults over sovereign problems any day.

Thanks, I have been looking for a strong buy signal.

[Viking]

Thanks, I have been looking for a strong buy signal.

There's some truth to that. Downside volume was 97% of total today. That's a huge washout and part of why my ass is in an office 40 floors up in midtown manhattan going through shorts we may need to cover and positions we may need to buy up again.

That said, this market is broken and needs major repair before one can get aggressive.

[byu71]

There's some truth to that. Downside volume was 97% of total today. That's a huge washout and part of why my ass is in an office 40 floors up in midtown manhattan going through shorts we may need to cover and positions we may need to buy up again.

That said, this market is broken and needs major repair before one can get aggressive.

I admit some nervousness. '08 is still fresh in my mind. What was terrible for me was fixed income investments also got slaughtered.

'99 was my second most painful year. I was having clients lighten up on their holdings in the market while they and I watched the market climb and climb. I got more complaints that year than even in '08. I was a whole year early.

[mUUser]

Maybe now's a good time to roll your traditional IRA into a Roth?

[byu71]

Maybe now's a good time to roll your traditional IRA into a Roth?

If you think the market is heading south, you should wait. I personally wouldn't switch unless I thought market had truly bottomed and most importantly, thought my tax rate would be higher when I retire than it is now.

[Viking]

If you think the market is heading south, you should wait. I personally wouldn't switch unless I thought market had truly bottomed and most importantly, thought my tax rate would be higher when I retire than it is now.

dude, we'll be paying taxes on IRA distributions by the time I'm 60 (you'll be in the ground, sadly).

[byu71]

dude, we'll be paying taxes on IRA distributions by the time I'm 60 (you'll be in the ground, sadly).

Maybe by then the second coming will have occured. I will be walking around and you will be in the ground unless you repent.

[mUUser]

If you think the market is heading south, you should wait. I personally wouldn't switch unless I thought market had truly bottomed and most importantly, thought my tax rate would be higher when I retire than it is now.

You're the expert. Here's my thinking....if the value of my Traditional IRA is below my contributions...why wait? Roll it to a Roth and never pay taxes on it. Doesn't work that way?

[byu71]

You're the expert. Here's my thinking....if the value of my Traditional IRA is below my contributions...why wait? Roll it to a Roth and never pay taxes on it. Doesn't work that way?

An expert would never give advice over a internet board, IMHO. Too many questions to be answered before a specific answer could be given. Besides a CPA who does taxes would be more of an expert than me.

I will speak in generaltities though.

Say my IRA was $100,000 and I was in the 30% brackett. $30,000 would be by taxes and transfer $70,000 to Roth.

If Roth and IRA grew at same rate and my tax rate was 20% when I took my money out of the regular IRA. I would have net more money at the end net of taxes out of the regular IRA than I would out of the non taxable Roth.

LIke I said, that is very simplistic. A myriad of other circumstances could be suggested that would change this simple answer.

[byu71]

Yo Mama, we are down 150 on the Dow, no wait it is coming back, gee the Comp. is actually having a good day. Oh, now were headed down again, down 50, 55, wait were coming back, we're about even. Comp. up strong.

Just squaring positions before the weekend, no the Comp. is leading us back, hey Goldman is up, something must be good. Aw screw it, I am going home and pulling the covers over my head. No wonder I tell people, hell no I don't want any more clients.