The Moneyist
‘This is unbelievable’: My adviser made $300,000 trading options. Now I’m being killed by taxes. Do I fire him?
‘I am getting hit with IRMAA in two years’
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Dear Quentin,
My registered investment adviser (RIA) made a profit of $300,000 in a few weeks trading options during the recent market turmoil.
I am getting hit with IRMAA in two years. I use three different RIAs at three firms, employing various strategies. I have about 20 accounts, using both platform managers, asset-allocation models that each firm provides (which managers can adjust), diversified strategies, and IPO access that I self-manage. Overall, my allocation is about 65/35. The windfall came from investing in the AI/tech sector during March’s downturn and capturing the April turnaround. Also, remember that returns are relative to the amount invested.