The Facts Are In - MLPs Work Great In IRAs [View article]
Reel Ken,
Perhaps if the MLP sold some of its property that meets the 1245 definition, then the unit holder, as a partner, is responsible for their small percentage of that gain/loss including depreciation recapture. However, I don't understand how the sale of the units has anything to do with the definition of 1245 property, can you explain please? Thanks
The Wisdom Of Not Reinvesting Dividends [View article]
It seems the discussion of "capital gains do not compound" has been lost in a discussion about CAGR. Compounding and CAGR are not the same.
"Compounding is the process of generating earnings on an asset's reinvested earnings. To work, it requires two things: the re-investment of earnings and time." - Investopedia
Capital gains are missing one of the two key ingredients: the reinvestment of the asset's earnings.
Benjamin Graham's Advice For This Stock Market [View article]
"Personally, if I had unlimited money, I would set up a trust so that it dispensed something like $30,000 per year (adjusted for inflation) so that the beneficiaries can enjoy meaningful life upgrades (vacations, pools in the backyard, nice clothes, eating at nice restaurants) but it is not so much that it would enable them to become slobs or develop a sense of smugness toward others."
I want to give my kids enough so that they could feel that they could do anything, but not so much that they could do nothing. -Warren Buffett
I've seen the results of too much giving by a parent. It is disgusting and tragic at the same time, which is why my estate will be going to charities.
Forecasting Future Earnings Is The Key To Successful Stock Investing: Analyst Estimates Are A Starting Point [View article]
"In other words, XYZ Company reported earnings today that missed analysts' expectations by one cent. We've all seen the stock price of the company reporting such a miss often fall by ridiculous percentages of 5%, 10%, or more."
And I hope the masses don't get too educated by fine articles like this because those are the buying opportunities I wait for!
Excellent points Larry. I struggle with point #6 : you have cash today but when a pullback happens and you invest said cash, you no longer have cash for the next pullback.
The book "Warren Buffett and the Interpretation of Financial Statements" is a big help to me when it comes to understanding company fundamentals. I actually use a majority of the metrics discussed in the book for my "durable competitive advantage" company ranking software.
If dividend income in a Roth is considered investment earnings, then it's subject to early withdrawal penalties so it does a DGI that retires early no good. They would either have to pay penalties or liquidate assets to get "contributions" out. A lose lose imo.
My plan consists of a taxable account that generates enough income to cover living expenses, convert my Traditional IRA to a Roth over the first 5 or 6 years of "retirement" and get a nice bonus income stream when I hit 59.5.
Another consideration is when you need the income. My taxable account is much larger than my IRA as I plan on retiring sometime in the next year or two. If the bulk was in my IRA, I couldn't retire for another 11+ years. I see you have Roth IRAs which treat early withdraws differently - not sure if dividend income would be counted as contribution or investment earnings.
The Facts Are In - MLPs Work Great In IRAs [View article]
Perhaps if the MLP sold some of its property that meets the 1245 definition, then the unit holder, as a partner, is responsible for their small percentage of that gain/loss including depreciation recapture. However, I don't understand how the sale of the units has anything to do with the definition of 1245 property, can you explain please? Thanks
The Wisdom Of Not Reinvesting Dividends [View article]
"Compounding is the process of generating earnings on an asset's reinvested earnings. To work, it requires two things: the re-investment of earnings and time." - Investopedia
Capital gains are missing one of the two key ingredients: the reinvestment of the asset's earnings.
Benjamin Graham's Advice For This Stock Market [View article]
I want to give my kids enough so that they could feel that they could do anything, but not so much that they could do nothing.
-Warren Buffett
I've seen the results of too much giving by a parent. It is disgusting and tragic at the same time, which is why my estate will be going to charities.
Forecasting Future Earnings Is The Key To Successful Stock Investing: Analyst Estimates Are A Starting Point [View article]
And I hope the masses don't get too educated by fine articles like this because those are the buying opportunities I wait for!
Great stuff Chuck.
Dividend Reinvestment - Yes Or No? [View instapost]
7 Investing Truths [View article]
The Essence Of Valuation Is Soundness, Not Rate Of Return [View article]
How To Remain Solvent Longer Than The Market Is Irrational [View article]
Managing Your Portfolio - Weightings [View instapost]
Thanks for the clarification.
Managing Your Portfolio - Weightings [View instapost]
The book "Warren Buffett and the Interpretation of Financial Statements" is a big help to me when it comes to understanding company fundamentals. I actually use a majority of the metrics discussed in the book for my "durable competitive advantage" company ranking software.
Managing Your Portfolio - Weightings [View instapost]
If dividend income in a Roth is considered investment earnings, then it's subject to early withdrawal penalties so it does a DGI that retires early no good. They would either have to pay penalties or liquidate assets to get "contributions" out. A lose lose imo.
My plan consists of a taxable account that generates enough income to cover living expenses, convert my Traditional IRA to a Roth over the first 5 or 6 years of "retirement" and get a nice bonus income stream when I hit 59.5.
My Mad Method: Replacing The MLPs In My IRA, Part 1 [View article]
Nope, nothing about UBTI or depreciation recapture being taxed as UBTI in that publication.
My Mad Method: Replacing The MLPs In My IRA, Part 1 [View article]
Managing Your Portfolio - Weightings [View instapost]
Rising Dividends: My Dividend Growth Portfolio 2012-2013 Report [View article]