What’s wrong with buying and holding the SPX500?

Discussion in 'Trading' started by iamnewuser911, Nov 22, 2017.

  1. ironchef

    ironchef

    Upon your passing, your assets that pass on to your heirs will be valued at a base value equal to the appraised value at the time of your passing so if they sell the assets at base value, they don't have to pay tax - essentially your estate is tax free up to ~$11 millions.

    The only exception is regular IRA/401K, it will be considered as ordinary income to your heirs and will be taxed accordingly.
     
    #41     Nov 24, 2017
    Visaria likes this.
  2. Overnight

    Overnight

    IIRC, any funds in the decedent's IRA becomes a beneficiary IRA, and so different rules apply?
     
    #42     Nov 24, 2017
  3. JackRab

    JackRab

    No, you're fitting the date to the idea that buy-and-hold might be a bad idea. You basically give half the picture... It all depends on when etc....

    Your statement that it's bad since from the late 80s they are down (which is factually correct), gives the following chart.

    upload_2017-11-27_10-20-22.png

    Vs long term reality.... Up from 200 to 22000 now, with top at 40k.

    upload_2017-11-27_10-21-19.png

    Or vs a shorter term from 2010.. up 110%...
    upload_2017-11-27_10-23-25.png
     
    #43     Nov 26, 2017
    Visaria, ironchef and Alexpung like this.
  4. ironchef

    ironchef

    New IRS rule: Beneficiary has to start withdrawal every year based on his/her life expectancy and the amount is taxed as ordinary income.

    Please check with your tax accountant, I am just a layperson.
     
    #44     Nov 27, 2017
  5. ironchef

    ironchef

    If you start in 1989, and you invest like us small retails, put in a small amount every month, reinvest the dividends, by now your return may not be too bad.
     
    #45     Nov 27, 2017
  6. yiehom

    yiehom

    Or alternative to day trading ?
     
    #46     Nov 27, 2017