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  • HealthEquity: A Niche Pure Play On Healthcare Reform [View article]
    Let me clairify for you. Say my deductible is $6,000, I pay $6,000 in out of pocket from my pocket. I also put $6,500 into the HSA, and take a deduction on my returns for the $6,500.

    Then the HSA earns money on investment. The money put in you get a current deduction for which is nice. The earnings on a growing asset are never taxed just like a Roth. So in this case, not only do you get a current deduction for funding (unlike a Roth) but everything you take out is tax free, assuming you can support medical expenses paid out of pocket.

    What a great opportunity, do a spreadsheet or two / three with different assumptions. Works every time.
    Oct 6, 2014. 09:27 PM | Likes Like |Link to Comment
  • HealthEquity: A Niche Pure Play On Healthcare Reform [View article]
    I can "recoup" prior medical expenses going back in time all the way to when I entered the HSA, I have vetted this strategy with my tax advisor, you should do the same. Since my family generally tends to spend the entire deductible each year (which is the same as what you can deposit into the HSA, and I pay for these expenses out of pocket), the whole balance should be tax free including earnings. Indeed, a major win win, tax advantaged equivalent of a Roth, but even better because you get the tax deduction each year with no taxes on the back end.

    It is well worth paying the deductibles out of pocket as a result. It is also worth paying for smart advice on the tax and investment side.
    Oct 6, 2014. 09:23 PM | Likes Like |Link to Comment
  • HealthEquity: A Niche Pure Play On Healthcare Reform [View article]
    Talk to your employer about negotiating the fees on the investment funds. My employer did and I pay less than 1% a year on each of the funds. They are limited choices, but assuming your employer moves enough money thru Health Equity, those fees can be negotiated down.

    The same premise works with 401k plans. Many employers don't bother to negotiate the fees and effectively rape the participants in their plans.
    Oct 5, 2014. 08:25 PM | Likes Like |Link to Comment
  • HealthEquity: A Niche Pure Play On Healthcare Reform [View article]
    I have a Healthequity HSA through my employer and have been contributing for about 5 years, the $6,500 a year. I invest the money and have never withdrawn a dollar. My plan is to continue to contribute another 13 years or so until I retire and never touch a dime.

    I plan on using the money in retirement for healthcare expenses, but since I have a high deductible plan now (and will no doubt until I retire) and since my family usually uses up that high deductible on eligible health care expenses each year (thus covering the premise that we spent that $6,500 in eligible medical expenses each year), in theory, I can withdraw the money and use it for whatever I want without any penalty. This strategy provides the equivalent of another form of Roth IRA except it is better, you get a tax deduction for what you put in (unlike a Roth), and the earnings are never taxed (like a Roth).

    Assuming I achieve market returns, I should be talking about another couple of hundred thousand bucks at retirement, plus the value of another $85,000+ of tax deductions.

    I only wish this type of plan had been available to me much earlier in my career. I am not a tax advisor, so consult your own tax advisor on this, I certainly did.
    Oct 5, 2014. 08:18 PM | Likes Like |Link to Comment
  • Ferrellgas Partners Poised To Go From Boring To Growing With Jump Into Energy Midstream [View article]
    For those who are retired, everyone will eventually die, just a matter of when not if. When your heirs inherit your MLP investments, the cost basis resets to fair value on the date of your death. Accordingly, MLPs provide an interesting way of doing some estate planning. When you die, the basis steps up, and presumably the tax on those distributions collected before death is never collected. Then the meter starts ticking again.
    Oct 5, 2014. 08:07 PM | Likes Like |Link to Comment
  • Consolidation Considerations In Kinder Deal Aftermath [View article]
    Very interesting and what appears to be an indepth analysis. The article is very thought provoking, thank you for taking the time to research and write it up. Much appreciated.

    Now have to think about what to suggest to some family members who own KMP. My initial reaction was to sell pre deal, in part, to unlock passive losses. I will have to do some work with the CPA to model this out.
    Sep 29, 2014. 08:20 PM | 4 Likes Like |Link to Comment
  • Is Magellan Midstream The Best Of The Large-Cap MLPs? [View article]
    I have been long MMP for a long time. I listen to each call / management presentation and find them to be very professional, the results speak for themselves.
    Sep 26, 2014. 08:59 PM | 2 Likes Like |Link to Comment
  • Retired Investors Should Not Fear Recessions Or A Bad Market: Part 1 [View article]
    It is always good to keep some powder dry to take advantage when quality stocks (businesses) go on sale during a recession. Works like a charm every time.
    Sep 20, 2014. 05:03 PM | 1 Like Like |Link to Comment
  • Devon Energy Corporation: An Attractive Oil And Gas Investment [View article]
    I took a look at the latest proxy statement, the CEO owns over 1m shares and has options on almost another 1m shares. How much stock do you think equates to "skin in the game"???
    Sep 20, 2014. 04:23 PM | 1 Like Like |Link to Comment
  • Ferrellgas Partners Poised To Go From Boring To Growing With Jump Into Energy Midstream [View article]
    I am a long term owner of this partnership, every few years the stock price always seems to go into the sewer for a short period of time (see the chart above). I use these dips to buy more units and have been fairly successful with that strategy.

    It would be nice to get some distribution growth and by branching out perhaps that is something the board would consider. I suspect that a better use of cash would be to delever the balance sheet some first though.
    Sep 4, 2014. 03:54 PM | Likes Like |Link to Comment
  • Taxation Fundamentals For The Kinder Morgan Reorganization [View article]
    actually the safe harbor is 110% of the income taxes you paid last year.
    Sep 3, 2014. 08:02 PM | 5 Likes Like |Link to Comment
  • Taxation Fundamentals For The Kinder Morgan Reorganization [View article]
    Rich Kinder controls KMI, it doesn't matter how you vote, the merger is a done deal.
    Sep 3, 2014. 08:02 PM | 11 Likes Like |Link to Comment
  • Plains All American Pipeline - Strengthening Its Assets Portfolio [View article]
    Here is a link to a recent investor presentation that should help you understand their business better.
    Aug 28, 2014. 09:03 PM | Likes Like |Link to Comment
  • 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, 2014. 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, 2014. 11:07 AM | 9 Likes Like |Link to Comment