Taking Advantage of Volatility

"Buy the dips, sell the rips." ~ Wall Street Adage

With the current volatility, I have started buying additional shares of my core holdings to trade.  To note, I am not selling my core holding, which I plan to hold through the volatility.

So when one of my holdings dips, I buy an additional small position.   When it rises approximately 10%, I sell the small position.  Then I wait for it to dip again.   With multiple holdings, I can rotate as different sectors dip at different times. 

Normally, the cost of transactions would prevent me from making small trades of around $100-$200.   However, I was given free trades in two of my brokerage accounts, which allow me to make the small trades commission free.  Thus, my small profit is not eliminated by the commission charge.

I expect the market will continue to be volatile the rest of 2018, allowing me to "buy the dips, and sell the rips" with small trades.

For more on The Practice of Personal Finance, check back every Wednesday  for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

Some Contrarian Scenarios

Here are my contrarian thoughts about the economy for the rest of 2018:

• Oil will go over $90/bbl.
• Interest rates will rise slower than expected.
• Inflation will continue to be low.
• Republicans will maintain a majority in Congress

If these scenarios happen, oil stocks, dividend stocks, and REITs should do well and our retirement investments should benefit.   

Disclosure:  We currently hold oil stocks, dividend stocks and REITs in our portfolios.

For more on Ideas You Can Use, check back every Tuesday  for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

Taking Advantage of Low Tax Rates

With the new tax law, I can keep my tax rate at 12%, until 2025, unless there is a repeal.  I don't believe tax rates can be kept this low after 2025.  So I plan to convert as much of my Traditional IRAs as possible to Roth IRAs while still in the 12% tax bracket.   That way I can reduce my future RMDs, pay a low tax rate, and continue to grow our retirement savings tax free.

Of course, tax laws can be changed.  So I will taking advantage of the lower tax rate in 2018 and all future years.

For more on  Strategies and Plans, check back every Monday for a new segment.

This is not financial, retirement or tax advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

$100 Oil?

This CNBC article speculates that $100/bbl oil may happen in the near future.   Who knows, but if it does happen, our investments will benefit.  When oil and oil stocks started falling in 2015, I bought.  When they continued falling in 2016, I bought more.   When oil finally bottomed in 2017, I bought even more. 

It has been a painful journey.  Maybe  I will get some financial benefit from all the pain :-)

For more on  New Beginnings, check back every  Sunday for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC