Well you used this example for stocks going up, But lets say i bought 1000 SOXL at $30 share, Then another 500 at $25 then another 500 at $13, then it goes up to $19 if i use FIFO to sell 500 shares it will take that from my initial 1000 shares bought at $30 share but if i use LIFO it will take it from the 500 shares at $13? I just found this out and could have saved so much money.
Most of us tend to pay more attention to the shiniest position in the market to the cost of proper diversification, Picking the best stock requires a lot factors and seems daunting for beginners like myself, From my own point of view, you need to invest smartly, if you need the good things in life. I made over $150,000 from my diversified portfolio strategy, mutual funds takes long time but investing smartly is the key for short term, My advised to get affiliated to a financial advisor.
If you are trading inside a ROTH, LIFO or FIFO doesn't matter - Does it? Asked another way: Are there any implications to LIFO vs FIFO other than taxes?
I was wondering the same question myself. Given you fund a Roth IRA with after tax dollars I don't think there is much or tax implications. (I could be wrong.) This is seems geared more to regular brokerage accounts where you have to take into capital gain taxes.
All capital gains inside a Roth IRA Is tax free/exempt so you can sell all you want without worrying about taxes, the same applies to a traditional IRA but just note that you're going to pay taxes on a traditional IRA once you start withdrawing funds at retirement unlike a Roth.
Dumb ? Maybe. But let's say I buy 100 shares at 5. And then 100 at 35. It gives me say 10 for ever share. It drops to 16 a share now. Can I sell my last 100 i got at 35 a share. And bring my first original buy cost to 5 per share???
