ETF or Fund Equivalent to S Fund?

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RealMoneyIssues said:
I am going to try to use USMIX since I am using USAA (no transaction fees) and see how that tracks...
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So, I found out from USAA that they don't allow "in and out" trades. If I sell a fund, I cannot buy it again within 30 days or that is considered trading for short term gain (and thats a problem?).

Anyway, it looks like I need to find somewhere else to put my play money and a fund family that can give me S Fund equivalent long and short term (1x, 2x, 3x) funds. I have seen many posts with the information but was wondering if those that know could provide me their recommendations for an investment account and fund families... :D

Thanks everyone !!
:nuts:
 
I utilize Merrill Edge online - you can buy anything that has a symbol. I currently pay $4.95/trade but that will eventually go to 30 free trades a month when I cough up $25K in my Bank of America checking account - I'm half way there. You can also take short positions. I reinvest all my dividend income free. And I have no ceiling on my margin account - so I can drown myself in their debt and buy, buy stocks as long as I don't have a margin call.
 
Birchtree said:
I utilize Merrill Edge online - you can buy anything that has a symbol. I currently pay $4.95/trade but that will eventually go to 30 free trades a month when I cough up $25K in my Bank of America checking account - I'm half way there. You can also take short positions. I reinvest all my dividend income free. And I have no ceiling on my margin account - so I can drown myself in their debt and buy, buy stocks as long as I don't have a margin call.
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Greetings BT and RMI: BT, do you utilize automatic re-investment of your dividends or do you collect them and re-invest in whatever? I've finally decided to do a total withdrawal from TSP via "gentle" monthly rollovers to a traditional and then "gentle" conversions to a Roth IRA. This must be completed within 120 months (IRS rule to be eligible). My dilemma was deciding with which firm to open the accounts as I am interested in commission-free ETF's, reasonable trading fees and low expense ratios. I currently have a Roth with TD Ameritrade but I am hampered by the $19.99 fee they charge for your buying the commission-free ETF's and selling within 30 days. I finally decided to open the accounts with Vanguard but was a bit disappointed to learn that by doing monthly rollovers I would have to complete paperwork for each conversion (can't see doing that monthly but probably periodically). I imagine that's the process no matter with whom you have your accounts. My reason for doing it this way is to manage taxes and to get as much as possible into a Roth for generational purposes and by doing monthly rollovers I can still participate in the familiar TSP for several more years. The only drawback with Vanguard is that there will be no face-to-face, considering that all the other firms have offices within 15 miles of my home. I finally completed the Vanguard paperwork today but have not mailed it yet. Any advice? What do you think of this plan? Thanks.
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Mista Magee,

I reinvest all my dividends automatically - that's one less decision I have to make. Your plan is excellent - I'm going to do something very similar.
 
Re: Gentle rollovers from TSP to IRA and Roth

Magee or Birchtree, I'm curious, what is your purpose in rolling out of TSP and into IRA and then Roth IRA via the method you explained?? Is it to have access to ETF trades etc., ?? Thanks..
 
Mista McGee,

I'm thinking about doing something similar once my wife and I retire in a few years. I too use Vanguard Brokerage for buying stocks and ETFs for my Traditional and Roth IRA. Do you have a website that you can point me to that explains how to do this conversion with the least tax burden???

TIA...

Regards,
Hotwings
 
Dutchy,

The Roth IRA is a tax free vehicle. There is no required minimum distribution since you will live until you are 90. The idea is to reduce your adjusted gross income for tax purposes. It is an excellent mechanism to pass money to a younger generation where the distribution becomes based on a life cycle. The required minimum distribution is small and thus leaves most of the money working and growing via another generation. The darn thing can actually grow for generations. Most organizations will hold back 20% of any distribution from an IRA or fiduciary account for tax purposes and you even up when you file your 1040. I was under the impression that one could deposit directly into a Roth IRA because the tax was being held back.
 
Birchtree said:
Dutchy,

The Roth IRA is a tax free vehicle. There is no required minimum distribution since you will live until you are 90. The idea is to reduce your adjusted gross income for tax purposes. It is an excellent mechanism to pass money to a younger generation where the distribution becomes based on a life cycle. The required minimum distribution is small and thus leaves most of the money working and growing via another generation. The darn thing can actually grow for generations. Most organizations will hold back 20% of any distribution from an IRA or fiduciary account for tax purposes and you even up when you file your 1040. I was under the impression that one could deposit directly into a Roth IRA because the tax was being held back.
Click to expand...

Thanks for the education, Birch!! :)
 
Birchtree said:
Mista Magee,

I reinvest all my dividends automatically - that's one less decision I have to make. Your plan is excellent - I'm going to do something very similar.
Click to expand...

Thanks for your comments. I've been retired for two years and have not touched the TSP. The most immediate hit that I see forthcoming with my plan is paying taxes on my SS but I'll follow through. It is also my understanding that you can roll directly into a Roth but I don't want the taxes withheld right away and feel I can better manage them by gradual conversions from the Traditional, probably will sell out of brokerage accounts to pay them.
 
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