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Discussion Starter #1
The market saw about a 2-1/2% set back due to the corona virus. China is closing down parts of the country stranding millions of people. Auto parts plants are closed along with theme parks. I took a look at the international exposure I had and decided to sell some stocks and mutual funds. There is no doubt earnings will take a hit. With the market being at near record levels plus it being an election year it made sense to have more cash on hand.
 

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Probably a good idea to sell some funds now. I do not see it going up with the impeachment going on and problems in China.

Washington (CNN Business)The Federal Reserve on Wednesday held interest rates steady despite renewed pressure from President Donald Trump to make deeper cuts.

Policymakers unanimously agreed to maintain rates hovering between 1.5% and 1.75% as they pointed to continued signs of a strong economy.
Citing solid job gains and household spending that continues to rise moderately, Fed officials deemed plans to hold rates as "appropriate" following a two-day meeting in Washington. They added that they would continue to monitor sluggish inflation, which has stubbornly remained below the Fed's target of 2%, as well as geopolitical risks -- like the coronavirus outbreak -- that could impact the US economy.
 

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Did you know that since 1936 the market has averaged 10.3% during presidential re-election years? The average is only 2.5% during open election years?

Did you know that over the last 100 years if a president avoided a recession during the 2 years before re-election, that president went on to be re-elected?

The impeachment trail will have no impact on the markets if the senate doesn't convict.

Also today Chairman Powell used the phrase "Cautious optimism" regarding global growth noting "some uncertainties around trade have diminished".

In regards to the corona virus, Powell acknowledged how serious this virus is and said it will have a negative impact on China's economy but used the words "short-term" or "temporary effect". The truth is no one knows how big or small the effect will be. This Monday market experienced it's first meaningful downward move since last October. It was one of the longest stretches without a +/- 1% move in a while. It was up Tuesday and again today, although it was up triple digits and closed almost flat.


https://finance.yahoo.com/video/jerome-powell-explains-coronavirus-impacting-205544215.html
 

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Since this thread got derailed to a “did you know” thread.

Did you know every republican president since WW II has been in office for at least one recession? I’m hoping trump breaks that historical fact.

I feel it’s time to reposition funds and did so this week. I only have a few years left until RMD kicks in and my tax bill goes way up. It’s better to pay smaller taxes than more taxes later when I’m required to add to my annual income.
 

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I moved a portion of my retirement into a savings type fund.

I also believe (and hope) that the coronavirus is short lived. However, I believe that they market will be driven by emotion....even if it is short term.

Getting closer to retirement means that risk aversion HAS TO BE part of the plan.

Prognosticating is fun.....does the DOW sink to 27,000 or does it take a foothold and go to 29,000?
 

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Since this thread got derailed to a “did you know” thread.

Did you know every republican president since WW II has been in office for at least one recession? I’m hoping trump breaks that historical fact.

I feel it’s time to reposition funds and did so this week. I only have a few years left until RMD kicks in and my tax bill goes way up. It’s better to pay smaller taxes than more taxes later when I’m required to add to my annual income.
My 1 post "derailed" your thread? Give me a break! Don't be such a baby! I was pointing out, in a non threatening way, that it would be foolish to make changes to a long term plan because of an ultra short term distribution. Focus on the BIG picture and ignore the noise.
 

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I pulled my money out of the market back in July. I ended up settling on buying gold and am I ever glad I did.

If we get a high percentage market drop I'll move it back in increments and buy up those cheap stocks with more money than I had before. I have a feeling I'll be holding at least some gold for quite a while though.
 

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Discussion Starter #11
My 1 post "derailed" your thread? Give me a break! Don't be such a baby! I was pointing out, in a non threatening way, that it would be foolish to make changes to a long term plan because of an ultra short term distribution. Focus on the BIG picture and ignore the noise.
From what I can tell from your posts you claim to be a financial advisor but I get the feeling you are really a shoe salesman. Are you a certified financial advisor if not why not?
 

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From what I can tell from your posts you claim to be a financial advisor but I get the feeling you are really a shoe salesman. Are you a certified financial advisor if not why not?
Nice deflection..."shoe salesman"...that's funny. I'd ask you to explain your thought process on this claim, but I know there's nothing behind it other than it irks you when I disagree with you.
 

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Nice deflection..."shoe salesman"...that's funny. I'd ask you to explain your thought process on this claim, but I know there's nothing behind it other than it irks you when I disagree with you.
I noticed you didn’t answer the question. Well?
 

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You dodge my question then wonder why I dodged yours? :dizzy:
"I asked you first". "I'll show you mine if you show me yours" lol

I dont disagree with his choice, especially given age. I agree with you due to my age and time before I need that money.
 

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Discussion Starter #16
I agree, less taxes are better than more. How does repositioning help you pay less taxes?
Anytime I pay taxes I don’t pay less than if I sheltered that amount. If I pay them now vs after I start receiving RMD it will be at a lesser rate. You should know that so I answered the question I asked you.

You are not a CFP but fall into the category of shoe salesman. You are in it for the Commision for your boss plus what you can put into your own pocket first. The needs of the customer come second.
 

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Anytime I pay taxes I don’t pay less than if I sheltered that amount. If I pay them now vs after I start receiving RMD it will be at a lesser rate. You should know that so I answered the question I asked you.

You are not a CFP but fall into the category of shoe salesman. You are in it for the Commision for your boss plus what you can put into your own pocket first. The needs of the customer come second.
So you're taking distributions and paying taxes now to lower the account value to try to keep your tax bracket lower for future RMDs? Am I understanding you correctly?

He's a free tip...if you're already charitably inclined, consider gifting your RMD instead of writing checks to charities (Qualified Charitable Distribution). The charity doesn't pay taxes, it won't increase your taxes and you keep your money in your checking account.

Now to answer your question.

I do not have my CFP.

To answer the Why part of your question: I'm part of a 4 person wealth management team and together we have 5 designations. I have 3 and I'm currently working on my CPWA. One of my partners is a CFP. I think it would be a better use of my time to pursue a designation we don't currently have, plus the CPWA is better suited for our clientele anyways. Once I get the CPWA behind me, I doubt I'll pursue a CFP, not for a few years at least.

I wouldn't expect you to know this, but the knowledge base involved with a CFP is very wide, but very shallow. The CPWA is very narrow but deep.

In regards to your childish "shoe salesman" jab, my practice is 89% fee-based and the remaining 11% is made up of commission based activity, life and LTC insurance and a tiny sliver of annuity business (don't care much for them) . We are not taking on any more non-fee based clients.
 
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