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Originally Posted by jamesqf
And how much do you pay in capital gains tax from all that frequent trading?
I'm also more than a little skeptical about the general idea. First, it smells like the "we've had a long run of heads, so tails must come up soon" sort of gambling system. Second, if it does in fact work, and is so simple, why aren't all the fund managers doing it>
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I'm very new to 401k, so I may be mistaken, but I thought there were no capital gains when transferring the investment vehicle from one form to another, such as stocks to bonds. Wouldn't gains tax only apply if the funds are liquidated?
Your comment about a historical pattern existing seems too good to be true, since everyone would be doing it if it were that simple, which would negate the advantage. I'll have to look into historical performance to see if this holds true well enough to give confidence that converting twice per year makes financial sense given the fees associated at each transaction.
Quote:
Originally Posted by jamesqf
These days, the average rental for a 1-bedroom apartment around here is well over my mortgage payment.
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Same here. It seems I'm moving to a 2-bedroom apartment next week and the cost is greater than my mortgage, taxes, and insurance on my 4 bedroom 2100 sq/ft house.
I'm hoping the bubble busts soon after our year lease is up, although my dream is to buy land and build a home. It's very unlikely the exact home I want already exists in a location I desire.