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TGC004

TGC004
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  • A Closer Look At Buckeye Partners' 2Q'14 Distributable Cash Flow [View article]
    I view the decision to replace the merchant services leadership as a very positive move, and the final disposition of Lodi to also be a good move. Reminds me of NS's exit of their asphalt operations. Both of those operations took management in a different direction outside of their core competencies.

    The author's analysis is solid and shows where BPL has been as opposed to where the partnership is going. The integration of the Hess assets and upgrading of the Perth Amboy facilities seems to offer BPL the opportunity to be one of the premiere storage facilities in NY Harbor.
    Aug 19 05:56 PM | Likes Like |Link to Comment
  • Retirement Strategy: How Dividend Income Grows To Staggering Levels By Reinvesting And Compounding [View article]
    Actually, our oldest child who has been working since she was 14 has a small but modest portfolio that generates dividends inside a Roth IRA. She has a part time job and contributes 100% of her earned income into the Roth, it is only a few thousand a year, but in an other 47 years when she retires, it is going to be a nice pile of cash. She uses her babysitting money for spending and is fairly tight with her cash.
    Aug 17 11:07 AM | 9 Likes Like |Link to Comment
  • Kinder Morgan Inc. Will Be A C-Corp Managed Like An MLP [View article]
    A taxable yield of 4% is usually alot less than that 4%, vs a tax deferred yield under the MLP structure, which is a lot more attractive, at least to me as an individual investor. I wonder what Rich Kinder has up his sleeve, the guy is no spring chicken and I question whether this deal has something to do with his estate planning or something else - perhaps a sale to XOM or something? Selling one 1 big C Corp is a lot cleaner than the existing structure.
    Aug 15 10:21 PM | Likes Like |Link to Comment
  • Kinder Morgan In $44B Mega Deal To Combine [View article]
    MLPs are pass through entites, meaning that each partner gets to report on his/her tax return their share of the profits of the MLP. Where the beauty of MLPs comes from is their tax shield, since these are capital intensive businesses (partnerships) the depreciation often shelters a significant amount of what otherwise would be taxable income, and thus the distributions received are generally tax deferred to a certain degree.

    When an investor who holds MLPs dies, there is a step up in basis to fair value of the partnership units on the date of death. For those who inherit those units, the tax shield effectively "resets" and tax on the original distributions in theory received by the deceased, never get taxed.

    While the above is my opinion, always consult your tax advisor for advice specific to your situation.
    Aug 12 08:43 PM | Likes Like |Link to Comment
  • Boardwalk Pipeline +3% as Cramer endorses [View news story]
    That was my take as well, demonstrates that Cramer must not have done his homework.
    Aug 12 06:15 PM | Likes Like |Link to Comment
  • Here's The Alarming Table Kinder Morgan Doesn't Want You To See [View article]
    Anyone who claims to be a "friend" of Kaiser is someone not worth knowing.
    Aug 12 12:11 PM | 15 Likes Like |Link to Comment
  • Retirement Strategy: Preparing For The Unknowns [View article]
    While I read a copy of the article I mentioned in the printed media, you can also buy a copy of the article on line from their website. I wouldn't feel right about scanning it and posting it as that would be violating copyright. The PDF isn't expensive.

    One aspect of retirement planning from an income perspective could possibly involve term life insurance if you have it available to you. In my case, my defined benefit plan has a hefty discount to provide my spouse with 50% of my benefit while I am alive (meaning to provide her with 50% of our pre death benefit, I would take a substantial discount to the benefit while I am alive). Accordingly, it is possible to get the higher level of benefits while I am alive, and provide for 30% for my spouse and buy life insurance to cover the remaining need.

    I am currently funding specific savings in a "side account" to pay for these premiums, and have been for about 15 years at a rate of about $600 a month. This level of funding should be able to more than cover the premiums.
    Aug 9 08:57 PM | Likes Like |Link to Comment
  • Continue To Avoid Linn Energy [View article]
    Another hit piece by the shorts, they never stop. I find it amusing the author has few to no facts to present on "expectations" or pretty much anything else.
    Aug 9 08:46 PM | 15 Likes Like |Link to Comment
  • Retirement Strategy: Preparing For The Unknowns [View article]
    In the July / August 2014 issue of the Harvard Business Review, there is an article by Robert Merton titled "The Crisis in Retirement Planning". It focuses on income in retirement as opposed to building a pile of assets and not knowing what level of income stream that pile will throw off.

    I found it highly interesting, and it is in line with your perspective. I cannot post a link to it here, but you should be able to find a copy on the web.
    Aug 6 07:19 PM | Likes Like |Link to Comment
  • Enterprise Products Partners: A Core MLP Holding [View article]
    Management has come out and said in public the goal is to raise distributions 15% a year, can't complain about that.
    Aug 1 07:04 PM | Likes Like |Link to Comment
  • Enterprise Products Partners: A Core MLP Holding [View article]
    Go back and look at the transcript, and related press release. EPD only distributes a portion of its cash flow, its coverage ratio is something like 1.4x. In addition, they have a multi-billion credit facility with substantial availability.

    I don't worry about how the partnership will pay for the damages as it relates to EPD as a going concern. Yes, it is $500m that they would not otherwise be able to invest, however.
    Aug 1 07:03 PM | 1 Like Like |Link to Comment
  • Don't Let High Fees Erode Your Retirement Savings [View article]
    Many employers pay no attention to the fees charged to the participant accounts, just trying to keep their own costs down at the expense of the participants.

    Target date funds are famous for ripping participants off with very high fees - I think the concept is that to achieve the same diversification you would be paying fees in multiple funds, this is total BS.
    Jul 29 08:10 PM | 1 Like Like |Link to Comment
  • Buckeye Partners to sell interests in Lodi Gas Storage for $105M to Brookfield [View news story]
    Lodi has been a loser for years now.
    Jul 29 10:47 AM | Likes Like |Link to Comment
  • Buckeye Partners to sell interests in Lodi Gas Storage for $105M to Brookfield [View news story]
    Well done management, you bought this dog in 2007 for $440 million, lost a ton of money over 7 years and then unloaded the dog at a further loss of $335 million.
    Jul 29 10:01 AM | Likes Like |Link to Comment
  • Is It A Good Time To Buy MLPs? [View article]
    One of the best things about MLPs is the estate tax law, which requires that upon the owner's death, that the assets are all stepped up to fair value. This allows the person inheriting the MLP units to benefit from an extended tax shield, and the deceased to have never ever (potentially) to have ever paid any income tax on the distributions.

    This is another reason why MLPs can be a very tax efficient piece of a retiree's portfolio. That step up in basis and resulting tax shield can be a very valuable asset for someone to leave to an heir (assuming they know what they inherited and how to deal with it).

    For the last 20 years or so, I have been building an MLP portfolio (in addition to other substantial retirement focused portfolios). Our daughter (our oldest) will enter college in 2015. The cash earnings from our MLP portfolio will be sufficient to pay for her tuition each and every year she goes to college (4 years is what she gets as after her are 2 other siblings). All in we have 12 years of college to fund. Without MLPs, we would have had no chance.

    We still have to add to our MLP portfolio to deal with tuition inflation as we will no longer be reinvesting distributions. But once the kids tuition is paid, that nice portfolio will still be generating lots of cash for us to reinvest.
    Jul 27 08:26 PM | Likes Like |Link to Comment
COMMENTS STATS
418 Comments
582 Likes