True Contrarian Investments LLC
Steven Jon Kaplan began TrueContrarian.com in August 1996 as a weekly blog and later expanded this to a daily newsletter with intraday updates in February 2006. He has been trading his own account, and those of family and close friends, since 1981, and handles separately managed accounts for qualified clients. As a registered investment advisor, Steve charges a 20 % performance fee on net profits and no management fees. He has been quoted in Barron's, Market Watch, Dow Jones Newswires, Seeking Alpha, Kitco, and elsewhere and has appeared on Market Watch cable TV with Stacey Delo.
Steven's goal is to identify those assets which are farthest away from the best estimates of their realistic fair-value levels. This is done through designing algorithms which examine the most reliable signals in the financial markets. These include insider buying relative to selling; investor inflows and outflows; media and advisors' sentiment; and intraday behavior especially near multi-decade tops and bottoms. He studies historical interrelationships to mathematically identify which divergences from typical behavior are pointing the way toward essential trend changes.
Steve enjoys running with the New York Road Runners Club, composing and performing on piano and voice, writing stories, and traveling to unique places. He enjoys hearing from anyone about a wide range of topics, so please let him know what you think about the web site or whatever is on your mind. You can find his music on ReverbNation.
BES, Electrical Engineering and Computer Science, The Johns Hopkins University
Assets Under Management:
20% of net profits; zero management fees.
True Contrarian Investments LLC
Steven Jon Kaplan explains why investors repeatedly fool themselves.
Steven Jon Kaplan: April 2010 conference
One method is to transfer (not rollover!) your 401(k) money into two separate IRA accounts. Your pre-tax money (the money that was subtracted from your salary) can be transferred into a traditional IRA and your after-tax money (where you didn't get a salary reduction) can be transferred into a Roth IRA with the same institution as your traditional IRA. This will give you maximum flexibility.
Be sure to do two transfers, not rollovers. The IRS has become very picky about rollovers since 2016 and you should avoid them wherever possible. Once you decide which broker should hold the two IRA accounts, they will have a transfer form to have the funds moved from your 401(k) into your two new IRAs.
In addition to these transfers, you should contribute 5500 dollars each year to a Roth IRA--either the same one as above or a different one. If your salary for any given year is less than 5500 then you can contribute up to the total amount of the salary listed on your W-2 form.
Having IRA accounts from a young age allows you to grow your money tax-free for decades. Roth IRAs are best since you will never have to take required minimum distributions or to pay taxes on the money.
By federal law, you are supposed to do due diligence on any potential financial advisor and he/she is required to do due diligence on you. You must give the advisor and your broker your name, address, telephone, email, social security, work history, income, net worth, and investment objective. Your advisor is similarly required to give you all of that information including his/her social security number and full set of identical personal data. Usually both of you are also required to have this information notarized in order for that person to be your advisor. In addition, that advisor has information about him/her at http://finra.org/ where you can see a list of all complaints about that advisor, when he/she began business, and other important details including his IARD and CRD (registration) information. Be sure to fully read the information about any potential advisor at the above web site to be sure you aren't dealing with an unscrupulous person--or, worse yet, someone who isn't even listed in the federal registry.
If you are living in New York then presumably you are voting in New York, you file taxes as a New York resident, and otherwise have all of the qualities of a full-time New York resident. In that case, your primary home is your New York address and your second home is your house in Pennsylvania where your parents live. On Schedule A, you can fully deduct your real estate taxes and your mortgage interest as long as you are actually paying all of those taxes and you are paying all of the mortgage interest. If someone else is paying part of the taxes and/or interest, then they can deduct their share and you can deduct yours, as long as the combined deductions don't exceed the total actual real-estate taxes and mortgage interest. Second homes are as fully deductible as first homes.
You don't have to pay taxes in Pennsylvania because you are not a Pennsylvania resident and you have no income from that state. On your 1040 and your New York form you must declare everything you earn worldwide including your Pennsylvania-related income (if any) and expenses. If you are charging your parents rent to live in your house then you must declare the rent as income and pay both federal and Pennsylvania taxes on it after first subtracting expenses connected with the rental.
If you currently have zero credit cards then having one is a good idea, but don't expect having one to improve your credit rating. Just be sure to always pay your credit card bills and all other bills--especially your student loans--on time and your credit rating will gradually improve by itself especially when your student loans are paid off. Be sure not to refinance any of your student loans since doing so suggests that you are having trouble making the payments.
Be cautious about buying a house in the near future; wait until housing prices are much lower than they are today and everyone is telling you why they'll go lower.
There are several issues involved. First of all, be sure that your portfolio is sufficiently large to justify owning individual shares, and be sure that your commissions aren't too large as a percentage of each transaction. If you are paying over .2% per trade (5 dollars per 2500) then you should consider instead having most of your money with mutual fund companies like Vanguard, Fidelity, and American Century where you can transfer money between funds at any time with no charges.
If you do buy shares, only do actual shares and not fractional ones. For lower-priced funds and stocks you should always trade at least 100 shares so you will get the advantage of having your limit bid or offer price being publicly posted. If you trade a small number of shares, such as 40 shares of TLT, then no one will see your bid or offer so no one will be able to hit your price. This is especially an issue with securities that don't have one-cent bid-ask spreads.
Also make sure that you don't chase after stocks that have high prices because they are trendy. Purchasing TSLA or AMZN or NFLX at current levels is asking for trouble no matter how many shares you buy.