We Lost Over $300,000 Day Trading!!

liz is with us in Illinois hi Liz welcome to the Dave Ramsey show thank you hi Dave how are you better than I deserve what's up good good so I was we're doing our taxes and um last year for 2008 for 2018 we had three hundred and sixteen thousand dollars in capital losses we were told that we could only deduct three thousand a year on our taxes but I did the math and that would take 115 years and I just I'm hoping I don't live that long but our accountant said that he suggested opening a brokerage account instead of a 401k to utilize these capital losses and I just wanted to hear your opinion on that so it sounds like the the type of losses that you have is what's causing the write-off the inability to write them up because you don't have any income that is of similar sources to the losses great yeah and so he's saying open a brokerage account because the income on that then would be tax-free utilizing these losses to write it off okay right exactly I'll bite and I don't know would you treat a brokerage like a 401k you just let the money build and then ya put the money into a mutual fund and the problem is is that if you put it in mutual funds the a lot of the gains may not be taxable because the growth in value is not taxable until you cash it out and so you're not getting any use of this the brokerage account where you're buying and selling stocks if you have a gain that's all taxable in that year it sounds like you've got a short you need short term income on investments not long term capital gains on investments to offset this what was this from what's the loss from from trading I'm doing trades Jesus yeah it was bad it was a bad situation my husband was diagnosed as being bipolar but not until after this happened and we just all happened within six weeks it was just kind of a manic thing it was you know very out of character and very upsetting and obviously what is your what is your household income um for last year oh my gosh it was only thirty eight thousand this year it's going up my husband got a new job starting at fifty thousand plus you know whatever board you have three hundred thousand that you could lose uh we had an inherited IRA and he was work yeah and so he was originally I had just had a new baby okay big profit pregnancy so he started working from home trading because he was doing it doing well with it until he you know yeah up until he wasn't and so now it's it's been crying seventy-eight percent of day traders lose money statistically that's called all of them okay no don't don't even ever say that again that he was doing well that's like saying I'm at the roulette table and I hit so I'm doing well yeah yeah okay all right let's stop for a second um the inherited IRA was taxable he pulled the money out and paid taxes on it and then lost it my said yeah yeah cuz inherited IRA is taxable when you pull it out yeah that was bad okay here's the problem we're if we get to knit C and nuanced and technical in order to get some benefit from this write-off but it exposes him to the very beast that just about killed him the first time I don't like that so your husband being anywhere near a brokerage account sounds like suicide to me so that's what that is a brokerage account a brokerage account is an account that you have with a broker that you call the broker and you do trades okay which is the answer is no your husband does not need to be anywhere near that so I don't know in your household how you're going to create gains on investments to offset losses on investments to get the benefit of this that is substantial I don't know how to do that what I would do if I were in your shoes before before I put your family at further risk playing with the same snakes that already you I would just say screw it forget it it's just gone yeah okay and but yeah but before I completely do that I want to ask a question if I'm you because there's 300 grand on the table of losses that we'd be nice to shelter income with I want to ask a different tax advisor than you have the same question what other accounts qualify what other investments qualify for this right the returns on them qualify to offset this loss I think though you're probably gotten pretty decent advice in terms of what technically applies but it was a bad advice when you pan back and understand the situation but your husband doesn't need to be anywhere near a broker manic-depressive people should not be doing trades hello you know nobody - nobody should but bipolar sure as crud shouldn't so I'm so sorry what a horrible thing y'all been thinking well we're getting through it there was some debt that went into it a lot of our marriage doing i'm here's a guy that's strong you know we go to counseling i'm very supportive of him she healing from the bridge where you hit him okay oh lord I can't even imagine I'm so sorry oh yeah let's do this let's do this let's say out loud let's say out loud that your accountant may have given you good tax advice but bad mental health advice great stay away from a brokerage now but let's also double check and get a second opinion and some other possible options if there are any that are safe and that are away from the snakes that have bitten you before that where you could get this right off but before I did a brokerage account I would just lose the money it's just part of the sadness of this whole situation thanks for the call anytime any time you try to short-circuit the process a building wealth get bit anytime doesn't matter if you're bipolar doesn't matter if you're a type doesn't matter you're Enneagram number he who hastens to be rich will not go unpunished I did it her husband did it don't do it [Music]

Channel: The Ramsey Show - Highlights

Views: 722,506

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, stock market, day trading, stocks, trading, finance, money, how to day trade, day trading for beginners, market, daytrading, stock, investing, investment, debt, getting out of debt, paying off debt

Id: PG-J4yup7tE

Length: 7min 52sec (472 seconds)

Published: Tue Feb 11 2020

Reddit Comments

[u/foyeldagain]

r/cringe (for a few reasons)

[u/PhiloPhrog]

Lol I love how whenever someone fails at trading by doing something absolutely ridiculous (usually attempting to trade some risky options on other people's money) everyone comes out of the woodwork and says this happens 90% of the time. Maybe it does, but who is surveying day traders and seeing who succeeds and doesnt?

[u/tonynca]

Ahh be must've found Wallstreet bets.

[u/ja_trader]

I say keep trucking and make it all back...offset that 300 with gainzz!

[u/hitmeifyoudare]

He didn't have to withdraw all the money out of an inherited IRA, you have to take out an amount each year according to an table based on the age of the deceased.

[u/mastershakeit89]

I'm confused, how do u trade tht much without a brokerage account?

[u/indridcold91]

As soon as he threw out his "daytrader statistics" wisdom I was like stfu you old fart I'm done here.

[u/icanttellyouwhybecau]

how useless. it was 7 minutes of Dave telling her her husband is an idiot and he feels sorry for her.

[u/Ishtastic08]

Idiots calling an idiot.