Robert Allan Schwartz

Dividend investing, dividend growth investing
Robert Allan Schwartz
Dividend investing, dividend growth investing
Contributor since: 2011
"DGI investors never answer that basic question."
What is "that basic question"?
"But it IS possible to be pregnant a lot. ;)"
I take you mean "often".
For me, it is not possible, as I was "fixed" many years ago, but for others, it is possible. :-)
Thanks, Rose!
Ron, I plan to use the cash to pay for the tax on a Roth Conversion, so I can move companies with unrealized capital losses (e.g. RDS.B, BBL) into my Roth, so if they ever do increase share price, the capital gain will be untaxed, as will be the dividend income from those companies.
"With all that reasoning, it is still true that someone who makes money buying and selling stocks in a taxable account pays a whole lot less on long term gains than someone who earns a salary or owns a sole proprietorship, except if the investor is in the very lowest tax brackets.
Yes, I personally benefit from this, but it seems grossly unfair that someone well off who gets $60,000 in investment income pays so much less tax on that income than someone who earns a salary of the same amount."
Psycho, I agree with you - the IRS distinction between "earned" and "unearned" income is silly, irrational, unfair, destructive, and the labels are emotionally laden - what the heck is "unearned" about income from dividends and/or capital gains?
Ah, Rose, I see. Thanks for the clarification.
I decided to NOT reinvest the cash into more DGI companies "directly".
I will use the cash to pay the tax on a Roth conversion, so future capitals and future dividend income will be untaxed. I suppose you could say I am reinvesting the cash into DGI companies "indirectly".
"RAS anytime now when I pick up a nickle I will think of this discussion, LOL. I wish you the best in your investing and early retirement."
as10675, thank you, and I wish the same for you!
Warm regards,
Mike, I feel your pain. I have made numerous bad decisions, some of the "buy" form, some of the "sell" form.
I sold all of my O because:
1) I believe it is currently overvalued, and
2) it resulted in a substantial capital gain.
I still think O is a terrific company, and a terrific investment, and if it does down again, I will buy it again.
I didn't sell O because I wanted to reinvest the cash into other DGI companies, although (to me) that would be a good-enough reason; I sold O because I wanted the cash to be able to pay for an IRA to Roth Conversion, to shelter the gains and income from some of my investments, specifically those that have gone way down in price, e.g. RDS.B, BBL - if they (ever) go up again, I'd like to have that capital gain in the Roth, where it will go untaxed, and I'd like to have the dividend income from them in the Roth, where it will go untaxed.
Hope this helps.
Thanks for asking!
Qniform, I appreciate the clarification. Thank you! I agree about the merits of an idea standing on its own.
I too hope that your portfolio helps you achieve your personal investing goals.
Warm regards,
">>>I do not understand that an unrealized capital gain is cash in my hand.<<<
I guess you are right, you don't understand it and it looks like you might never understand it. But just because you don't understand it, it doesn't make it so.
For me, my brokerage allows me to have the cash in a just few mouse clicks."
as, you are proving my point.
The only way for a capital gain investor to end up with cash, is to sell shares, thus realizing the hitherto-unrealized capital gain.
So, the quarter is not in your hand until you sell your shares.
With a dividend, the nickel is in my hand without selling my shares.
"Americans should consider Canadian equities."
I have.
I do.
I am long the 5 major Canadian banks.
I used to be long RCI and SJR, but I sold them.
BeatlesRocker, congratulations on your first (hopefully of many) comments!
Gambler, I agree, it is hard to be only half pregnant. :-)
Be, that makes more sense than any other explanation I have heard.
Thank you!
Rose, which choices should I write an article about?
heglimp, that is very helpful. Thank you!
"It is obvious that you only see it as "either or" or "one and zero" or "black and white"."
Yes, that is correct.
"Either" you sell your shares "or" you don't.
"Your investment style is that of the highest of yields, say 5% yield for an example. It is sort of like the "I will take the nickle the hand approach" even for a pre-retiree. Some other people like the feel of a "Quarter in the hand" better."
I understand that a dividend is cash in my hand.
I do not understand that an unrealized capital gain is cash in my hand.
"It's a window into another dimension where happy retirees forever receive ever increasing paychecks."
I know your intent was to poke fun at DGI investors, but the reality is that my dividend growth portfolio produces more cash each and every year, as my companies raise their dividends each and every year.
Do you do your own taxes?"
"Your brokerage figures out the gains and reports it to you and the IRS, it's the law."
Do they do that after I die?
"The corporate tax rate is 20%."
The corporate tax rate is 35%.
Hi Mike,
Thank you, and I wish the same for you!
I did write an article about this situation:
No, I did not have any internal struggles.
You know, I have never understood why people "trim". Either I want to own a company, or I don't; I don't understand a mixture of the two. But perhaps I am not nuanced enough. :-)
Warm regards,
Peace, that is most helpful advice. Thank you!
No hate comments from me.
I sold all of my shares in O a few days ago, at an all-time high share price.
"Sun Life has been aggressively increasing its exposure to the United States in 2015."
Isn't it currently very expensive for Canadian companies to be acquiring American companies, because of the exchange rate?
"Those taxes can be the problem. If you have held your stock for decades and have a low cost basis and a lot of shares the gains can push you up into a different tax bracket, with higher Medicare payments, etc."
Psycho, you're right.
"The potential for forced gains is something In am paying more attention to. My kids under current tax law will inherit my stuff at a stepped up basis with no capital gain if they sell right then."
I'm doing the same thing - planning to leave my shares to my heirs, and having them get the benefit of the step-up (plus the benefit of not having to go back over years and years of dividend payments and reinvestments, trying to figure out the proper amount of capital gain).
"Maybe the two camps aren't that far away from each other as some want to believe?"
Capital gain investors hope to make their money by selling their shares.
Income investors how to make their money by keeping their shares.
How could two approaches be any further apart than that?
Mike, I recently sold all of my O, at an all-time high. I enjoyed quite the capital gain, and look forward to reinvesting that cash into some wonderful DGI companies.
Albert Einstein said, "A clever person solves a problem. A wise person avoids it."
"When it got taken out at an 80% premium, capital gains were forced upon me."
DGI investors might be the only investors in the world who complain when a capital gain is "forced" upon them.
"I have often said that when I shifted my gaze from prices to dividends and income, I became a better investor."
And you have helped thousands of other people (including me) become a better investor, too.
So ...
Christine, I agree with that "nitpick". :-)
"Spacebars The Movie:"
The movie was called "Spaceballs".