Wednesday, April 02, 2008

Balance Sheet Adjustment

So before I go to bed tonight, I just want to briefly touch on some balance sheet updates I'm preparing to make.

First is the self-directed Roth IRA that I am planning to open for 2007. I should probably bump this priority up since 15 April is right around the corner. I figure I'm going to have to do an extension anyway, and I definitely won't owe this year. However, once I leave my current employer, I plan to roll over my old 401(k) accounts into this Roth IRA. We don't know what the future holds tax-wise. (I do believe that the Roth will probably lose its tax advantaged status at some point, personally.) So for now, its the best bet considering that almost any position I take in the future will likely offer a 401(k). Between the 401(k) and the Roth IRA, with its immense flexibility for contributions, its really a handy combination of abilities. I also plan to investigate the Roth 401(k) a bit more closely, but I don't see as many advantages there just yet so that's a much lower priority option.

I've also finally re-obtained the forms to add equity options trading to my brokerage account. This is so long overdue that I'm somewhat upset with myself. However, as I touched on in a previous post, adding options trading and possibly some futures trading will give my portfolio a bit of extra bit of alpha while helping to hedge some of the weakness in my other accounts. We're not swinging for the fences here, just looking to add a few points on the upside. And we're definitely not looking to pick up nickles in front of steamrollers. I'll re-focus on this after I get the self-directed Roth IRA setup, as that is a bit more pressing.

So that's it. A few small things that will hopefully allow me to tweak the composition of my asset mix and add some alpha. Nothing major, at least not yet. Of course I'll keep you posted on how things unfold.

And I didn't get those re-balancing trades done today. From around 2:30 PM EDT until 11:00 PM, I was knocked out. I blame the melatonin and the Simply Sleep that I took. I needed the rest anyway. So I guess I'll get up around 5:30 AM to work out and get started on my day. Which means, it is now time to go.


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