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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (74730)	12/30/2023 3:36:02 PM
From: E_K_S	Read Replies (1) \| Respond to of 78478

$SPX is not tax efficient. The index must book gains every year. My portfolio has more than 50% of it's current value in long & short term gains. Keep it in the portfolio, no tax event. Dividend payers keep paying qualified dividends or ROC (which further reduces cost basis). $SPX does not provide this . . . FWIW, The money one invest is already after tax income $'s, those that trade buy/sell, get further taxed and if you reside in a high tax State like CA or NY, your gains and div income is further taxed. I moved in 2011 to a No income tax State and save at least 13% (CA Tax) on gains I book. By keeping the gains inside the portfolio, I can compound those gains. If/When I draw on the ROTH, still no taxes. So all is good & efficient as long as the rules are not changed. It's the AFTER tax returns that count. Remember, when you spend those gains, you get taxed again by sales tax.

To: Elroy who wrote (74730)	12/30/2023 4:02:59 PM
From: Paul Senior	1 Recommendation Recommended By petal Read Replies (1) \| Respond to of 78478

Why not the S&P? It's about changing a life-time of investing in the market. It's about not trusting one or two or even three indices. About not wanting to give up control in making individual buy/sell/weighting decisions. It would be about giving up the excitement/challenge of the hunt and finding something stimulating to replace that. It's wondering that if I don't beat the S&P in up markets, can my now conservative portfolio compensate better than the S&P in down markets?

To: Elroy who wrote (74730)	12/30/2023 11:11:04 PM
From: FIFO_kid2	Respond to of 78478

Elroy- This is off topic to stocks but if you are looking for tax efficiency outside an IRA or Roth IRA relevant to indexes options the SPX, RUT, commodity indexes like i.e BOIL/ KOLD as examples among others are quite tax efficient though. They are taxed at the 60/40 LTCG/STCG ratio ( much like UAN's options have been for you) no matter how long you hold them provided you can extract a gain from the investment and require little capital if it is a hedged position. You could as an example perform a put credit or butterfly spread and iron condor positions which are generally a neutral strategy as potential hedges. What is nice about that strategy with options is you do tamper down outlier alpha risk from the diversification of the index.