A Moderate-Risk, High-Reward Dividend Play [View article]
Hi Tim. Good article. I am long AFL. I would assume that the Company, being so entrenched in Japan, has some form of material hedging policy in place knowing that the premiums come in as Yen and get converted to U.S. dollars.
What Will $2 Million Get You In Retirement? [View article]
As long as your investments keep paying your income should be unaffected. Your principal value may fluctuate which isn't as relevent as your income needs being met without having to draw down principal.
What Will $2 Million Get You In Retirement? [View article]
Your original comment was right on. After backing out the SS, at 35K per year plus COLA, the 2MM only needs to produce a 2.8% after tax return. Even in this crazy market that's easily doable !
Looking At Fundamental Questions In MLP Investment [View article]
Good comment. The 35% of the upside growth which may be missed is the tax on the ordinary income that an invester will pay, assuming that is his tax bracket, on the recapture upon sale of the investment. You are correct in stating that you better die with them to avoid the tax shock in a year of sale. I chose to take the tax hit in 2012 and in 2013 to avoid the deferred liability to continue to grow especially with tax rates heading higher not lower. Plus, I live in a high tax rate state ! I much happier paying a lower dividend and cap gain tax rate going forward.
American Realty Capital Properties: Plenty Of Salsa, But Not Yet A SWAN [View article]
Hi Brad. Another A+ article. Please indulge me. If management is not working full time for ARCP and the other entities they manage that means that the entire management team are not needed to just run ARCP. If that is the case, and I am just paying a pro-rata share of the overhead, why is that a problem ? If the cash cost to the ARCP owners is less, due to outsourcing, than our cash basis net income is higher. It seems that it is a problem only if self-dealing is not disclosed and hurts the ARCP owners and/or our share of expenses exceed the cost of stand alone overhead. What am I missing ?
Smart And Profitable Ways To Rebalance Your Portfolio [View article]
Good article. In general, I like your idea about the call writing strategy, however, you should always consider the tax cost. Sometimes It's cheaper to hold some overvalued shares that will probably correct at some point, rather than paying the Fed, and probably state taxes as well.
A Look At Exxon's Dividends And Buyback Program [View article]
It appears that based upon the comments above, it is irrelevant if Treasury shares are issued for an acquisition or if new shares are issued for an acquisition since the shares outstanding would change in either case. Having been out of the profession for quite awhile, I really don't recall as to what the internal effects are of re-issuance vs newly issued shares.
Alerian MLP ETF Cuts Expense Ratio To 4.85% [View article]
Thanks for the response, however, it is my understanding that if I sell for a profit than 100% of the gain is capital gain and there is no ordinary income recapture, regardless of any dividends received as return of capital.. If my assumption on this is inaccurate please correct me since my basis for the investment is a current dividend of just under 6%, and cap gain tax rates upon sale. No ordinary income. Thank you.
Alerian MLP ETF Cuts Expense Ratio To 4.85% [View article]
This is a good article with very relevant comments. The bulk of the expense ratio, 4%, is to fund the future tax bill upon sale of the underlying MLP's. The only difference is that by owning an individual MLP you decide when to pull the trigger and pay the tax on the inevitable ordinary income being generated. This year I have disposed of all my MLP's, except LNCO, and bought AMLP. My deferred tax bill was growing and I am not the type of person to commit to owning these forever. The longer you hold the larger the future tax bill and you become paralyzed and can't bring yourself to sell because of the taxes due. In addition, tax rates are higher in 2013 and I feel that they are on an upward track so I decided to pay now.
Finally, most of the dividends you receive from AMLP will be a return of capital and not taxable. Also, it is my understanding that there is NO ordinary income recapture when you sell AMLP so you receive 100% capital gain treatment. These factors are why I moved out of the individual MLP positions that I owned.
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
Good article. It was interesting and relevant to many readers, however, I think your analysis should be modified to reflect the the Federal and possibly State tax owed on the KMB gain. If not too much of an effort I would like to know how many years you must wait for the IBM income to meet than exceed KMB's. Thanks.
Revisiting IBM And Its Dividend Growth [View article]
You're probably right, however, around the beginning of March I noticed LMT trading around 87. I'm sure it was the sequestor blues. I never owned it before so I jumped in @ 87+. This time I went in with half the amount I normally spend on a new holding. Today it's over a100 ! I guess my point is who knows what's right ?
It's Okay To Wait For A Dividend Cut Before Selling [View article]
A Moderate-Risk, High-Reward Dividend Play [View article]
Looking At Fundamental Questions In MLP Investment [View article]
What Will $2 Million Get You In Retirement? [View article]
What Will $2 Million Get You In Retirement? [View article]
Looking At Fundamental Questions In MLP Investment [View article]
B&G Foods Secretive Acquisition Of TrueNorth Brand [View article]
American Realty Capital Properties: Plenty Of Salsa, But Not Yet A SWAN [View article]
Smart And Profitable Ways To Rebalance Your Portfolio [View article]
A Look At Exxon's Dividends And Buyback Program [View article]
Alerian MLP ETF Cuts Expense Ratio To 4.85% [View article]
Alerian MLP ETF Cuts Expense Ratio To 4.85% [View article]
Finally, most of the dividends you receive from AMLP will be a return of capital and not taxable. Also, it is my understanding that there is NO ordinary income recapture when you sell AMLP so you receive 100% capital gain treatment. These factors are why I moved out of the individual MLP positions that I owned.
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
Revisiting IBM And Its Dividend Growth [View article]
In Search Of Income: Consider Mid And Small Caps [View article]