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Thread: Lawful Money redeemer prepping for meme stock short squeezes in a rollover IRA

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  1. #1
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    Cool Lawful Money redeemer prepping for meme stock short squeezes in a rollover IRA

    Lawful money redeemer here since 2013. My checking account at Wells Fargo has the lawful money demand on a paper application for the account and I have a copy so I’m good to go there for my employment income and have been for years.

    My 401k from a previous employer got rolled over and I decided to move that into Index Funds, stocks, and also Meme stocks like AMC and GME.

    Hypothetically we hope and say that $50 meme stocks go to $100,000 per share, humor me please, it may happen it may not. I’d be curious to see a thread here entirely about Reddit Meme stocks but the question of the day for this thread…

    I don’t have a special signature card at Fidelity (my IRA rollover account broker). Let’s say I become an overnight millionaire who normally redeems lawful money via my checking account and has been income tax exempt without complication for almost a decade. Assuming the overnight millionaire thing happens sooner or later from a short squeeze, how would I prepare for this to avoid massive cap gains tax and early withdrawal penalties if I wanted to enjoy a portion of the money (I’m in my 30s)? Would it be as simple as sell and transfer it into my lawful money account or sell and request a check to be safe and stamp it with my LM demand? Would I be covered to avoid penalties and taxation?

    Thank you for humoring me.

  2. #2
    Quote Originally Posted by teamsnowden View Post
    Lawful money redeemer here since 2013. My checking account at Wells Fargo has the lawful money demand on a paper application for the account and I have a copy so I’m good to go there for my employment income and have been for years.

    My 401k from a previous employer got rolled over and I decided to move that into Index Funds, stocks, and also Meme stocks like AMC and GME.

    Hypothetically we hope and say that $50 meme stocks go to $100,000 per share, humor me please, it may happen it may not. I’d be curious to see a thread here entirely about Reddit Meme stocks but the question of the day for this thread…

    I don’t have a special signature card at Fidelity (my IRA rollover account broker). Let’s say I become an overnight millionaire who normally redeems lawful money via my checking account and has been income tax exempt without complication for almost a decade. Assuming the overnight millionaire thing happens sooner or later from a short squeeze, how would I prepare for this to avoid massive cap gains tax and early withdrawal penalties if I wanted to enjoy a portion of the money (I’m in my 30s)? Would it be as simple as sell and transfer it into my lawful money account or sell and request a check to be safe and stamp it with my LM demand? Would I be covered to avoid penalties and taxation?

    Thank you for humoring me.
    Would it be as simple as sell and transfer it into my lawful money account or sell and request a check to be safe and stamp it with my LM demand?
    Both should work. If you get the check deposit it into the Lawful Money account.

    Title 31 USC §5115 stipulates there is only $300M in US notes allowed into circulation. And we have a high end tax accountant estimating that will be exceeded in two years, for his business plan. We have already seen a chain of credit unions shut down. Also a group of lawful money trustees, their accounts at a major bank were identified and shut down - "We don't want to be your trustee."

    Maybe what you should do is dedicate a percentage of your portfolio to keeping the cash window open. Let's pretend you can cash out $4K or so every month or so just to know how you will do it after your short squeeze. This will keep you in practice, and keep a precedent process open.

    What I am describing is that there may be a window. Or Congress may be compelled to address the use of US notes, even in the form of Federal Reserve notes. It is the same old story, but it will look new and unequivocal to some. The gold is earmarked worth $42.22/ounce for this event where it comes back into the system. When people lose trust the SDR will collapse. Search "Fed Assets Current". Look at the footnotes.


  3. #3

    who is your trustee?

    P.S. Like MJ says - Six Friends - I have no trust in you.

    • member state bank => trusts the Fed
    • non-member state bank => does not trust the Fed


    This is what the law provides, as it is written in future tense. It is written for the lawless because God is Now. That is to say all black letter law is written in contemplation of breach of trust.

    So be careful how far you trust government in general.

    Redemption means you are not in debt. Being in debt means you are not redeemed. If you are worried about the money then your mind is still captivated.

  4. #4
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    Insightful as always, thank you very much David!

  5. #5
    Lawful money gains are the best! It means never having to say "I owe you" to the taxman.

    How is your portfolio doing? Do you have a maxim for stock selection or do you just mimic the successful traders like roaringkitty?
    Last edited by marcel; 07-13-21 at 06:27 PM.

  6. #6
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    I’m just going with the flow on AMC and GME. I got in high for GME so I’m breaking even there. I learned to not be an emotional trader and accordingly have AMC gains as high as 300%. I believe we will see record setting short squeezes on both and AMC is significantly undervalued. Right now the game with AMC especially is to buy the dips, hold, hold, ignore the dips with relation to your existing shares, buy more (discounted shares), ignore the share price for your existing shares, hold, hold, hold until the squeeze. The hedge fund managers have to cover their short positions and the SEC is hopefully a friend to the retail investor (as opposed to the hedge fund managers) in regulating that all the shorts have to be covered, they have to buy back their shares and we own 80+% so we as retail investors hypothetically set the price by buying and holding to cause an upward movement to price on the supply/demand graph. The previous instruction of hold, hold, hold should drive the price to hopefully unthinkable levels like 50K to 500K or more per share. It’s a crazy, wild roller coaster and you truly get to teach yourself the discipline of patience and being logical instead of emotional. These are just my observations and experience, marcel, and I hope I’m right. I’m excited for the SEC to hopefully be the catalyst that sets off this crazy chain of short squeezes with GME and AMC. Hopefully sooner than later. (None of this is financial advice). Thanks again David and marcel, this is a great forum.

  7. #7
    Quote Originally Posted by teamsnowden View Post
    I’m just going with the flow on AMC and GME. I got in high for GME so I’m breaking even there. I learned to not be an emotional trader and accordingly have AMC gains as high as 300%. I believe we will see record setting short squeezes on both and AMC is significantly undervalued. Right now the game with AMC especially is to buy the dips, hold, hold, ignore the dips with relation to your existing shares, buy more (discounted shares), ignore the share price for your existing shares, hold, hold, hold until the squeeze. The hedge fund managers have to cover their short positions and the SEC is hopefully a friend to the retail investor (as opposed to the hedge fund managers) in regulating that all the shorts have to be covered, they have to buy back their shares and we own 80+% so we as retail investors hypothetically set the price by buying and holding to cause an upward movement to price on the supply/demand graph. The previous instruction of hold, hold, hold should drive the price to hopefully unthinkable levels like 50K to 500K or more per share. It’s a crazy, wild roller coaster and you truly get to teach yourself the discipline of patience and being logical instead of emotional. These are just my observations and experience, marcel, and I hope I’m right. I’m excited for the SEC to hopefully be the catalyst that sets off this crazy chain of short squeezes with GME and AMC. Hopefully sooner than later. (None of this is financial advice). Thanks again David and marcel, this is a great forum.
    You are welcome.

  8. #8
    Hi, I'm in the same boat. I have Fidelity too and you can create a nickname.

    Name:  Nickname.jpg
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  9. #9
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    Quote Originally Posted by joseph3r View Post
    Hi, I'm in the same boat. I have Fidelity too and you can create a nickname.

    Name:  Nickname.jpg
Views: 89
Size:  62.2 KB
    Great idea, nice little extra layer of record formation! Let's go, Apes!

  10. #10

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