Running The Kinder Morgan Tax Obstacle Course [View article]
21: Recapture is not eliminated by the death of the owner and is still subject to ordinary income taxes on sale. FMV is the new basis for any capital gains calculation on sale. See the link to an article by Reel Ken at rip2451 later in the comments. Regards
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
Robert, you and I have made emotional trades. Some work out some don't. I give you all the credit for baring your soul here. Your IBM trade will be OK because it is a good company. As a retiree, I severely limit my total return bets and stick with DG stocks with a minimum going in yield of 3%. I'm also sitting on some Windstream, old Citi, etc. from my wild and crazy days. I am also struggling with a number of good dividend paying stocks that have huge run ups in value. I love to recapture the capital gain and reinvest to grow my cash flow. The problem is I am not finding any suitable candidates today. IBM may have resulted in a decrease in cash flow, but the company will not hurt you. Hang in there.
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
DGM, again it depends on your strategy and plan. If you are 30 years old this can work. If you are 65, it is a tougher sell as the crossover on dividends is projected at nine years. Your "long term total return" is based on growing earnings combined with multiple expansion. It might work and, then again, it might not. Regards
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
Hilo, you are correct from a total return point of view. I gave up that investing strategy a few years ago when I began to focus on cash flow. Living off a capital gain in the future is a dangerous game in this low inflation, messed up world. Maybe you will be successful, maybe not. I like my quarterly dividend paying stocks paying my bills each and every year. For every capital gain, I have a capital loss. No thanks. I looked at IBM recently, but couldn't pull the trigger because I would sell a strong dividend payer and, even with the reinvestment of the capital gain, I would still have a loss of cash flow. Even though I am retired and it makes a big difference to me if my cash flow decreases, I am investing my child's money in a DG formula. Having played the game for over thirty years in finance and Wall Street companies, I can tell you the game is rigged against the small investor with insider trading, front running high frequency trading, dark pools and a weak SEC. Solid blue chip, dividend paying stocks are the least risky investments.
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
rnsmith, I too believe REITs can be part of the core for DG investors. However, I would caution that the only truly conservative REITs are apartment REITs. Others carry a fair amount of risk (hotel, office, medical, managed care, mortgage, etc). Also, apartment REITs are overpriced today. Long: EQR
The Good News And Bad News For Long-Term General Electric Shareholders [View article]
Although you may call the seize up of the commercial paper market a black swan event, Bill Gross of PIMCO called out GE for having the majority of their balance sheet financing in this short term product because it presented a huge risk before the market crashed. Jack Welch was making a name for himself by cutting his financing costs at extreme risk to the company. Emmelt continued to ride the train. How a CEO can be competent running an industrial firm with numerous product lines (airline engines, locomotives, refrigerators, etc.) and an in-house bank which does more than provide customer financing is beyond me. GE Capital was the earnings engine and still represents significant risk. I am long GE but consider it a speculative investment.
Housing Starts And Industrial Production Rose In March [View article]
James, most of the new housing permits are for apartments, not single family. The single family starts are slightly negative. I believe multi family starts will continue, but single family is still very weak. Regards
A Start-Up Dividend Portfolio For Beginners [View article]
Welcome 222 to your first posting on SA! I have owned GE for many years, but consider it a risky stock. They claim they are an industrial company but also have a large banking component through GE Capital. They previously cut their dividend when their "bank" got in trouble. We'll see about a spin-off. Although I still hold GE, I prefer Emerson here (EMR). Regards
This New Budget Proposal May Limit Your Annual Retirement Income [View article]
Robert, I generally agree with you with one caveat. Let's say I work at the front desk of a hotel in a major city and earn $30,000. I live prudently, save and retire. While I'm doing this, the government that is controlled by the lobbyists for special interests manages to jack up the inflation rate over this time or devalue the currency to where my savings and SSi push me further down the economic scale. I don't want the government o take care of me and don't want them devaluing my savings!
This New Budget Proposal May Limit Your Annual Retirement Income [View article]
David, I agree with your comments. Most, if not all, politicians are bought and paid for by lobbyists at the federal and state level. Their job is to get reelected and take then money from the lobbyists to run their campaigns. I think we all know that the general electorate functions on a low information basis and buys the crap (primarily fear of the other person) fed to them by both major parties. My comments on illegal immigration follow along the same lines. Employers don't "check" the phony documents, as HM suggests, because they can get away with hiring cheap labor. What ever happened to honesty, integrity and the rule of law? Politicians aren't going to stop this because they are supported by the Republicans and Chamber of Commerce (cheap labor for businesses) or the Democrats (potential new voters if made legal). Private industry can stop illegal immigration anytime the want. They just don't want to. Regarding Anthony "check out my @#$!" Wiener, this is just more fodder for the comedians and points out that the electorate just wants to be entertained. Bread and circuses are back! Regards
This New Budget Proposal May Limit Your Annual Retirement Income [View article]
Robert, you are correct in that you get a statement. I view SSI as a government annuity, effectively a government insurance product, that you are required to purchase. Pen Y is correct in that the payouts are means tested relative to your overall contributions, but this is more of an "effectiveness" test. My issue is that the program was initially passed as a poverty program for the very poor, not an "earned benefit" or "entitlement" for everyone. I'd rather see more restrictive means testing that changing formulas that will effect the poorest members of society. Additionally, these funds must not be commingled as part of the government's general account.
A Smart Way To Look At A 'Dumb' Investing Strategy [View article]
James, thank you for a very inciteful article. I view any annual or semi-annual rebalancing of my portfolio as a risk management tool, not a total return alpha enhancer. I don't consider shifting a certain percentage of bonds into stocks as "rebalancing" when we have come to the end of a twenty year bull bond market. This of course may be viewed as semantics by some versus a longer term strategic realignment of my holdings. Regards
This New Budget Proposal May Limit Your Annual Retirement Income [View article]
Dave & Jeep5ster, please tell me how many laws were passed penalizing small businesses that hire illegal immigrants? Very few. You may not like it, but businesses love the cheap labor and hang out the sign that says "if you can get here, I have a low wage job for you!" Your Congressman and Senator are paid by the lobbyists to keep the low wage labor flowing. The average citizen picks up the tab for all the services. The fraud starts with employers and its the only way to stop it. The pitch against the "illegals" is an attempt by the lobbyists to distract you.
Running The Kinder Morgan Tax Obstacle Course [View article]
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
Feel better!
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
The Good News And Bad News For Long-Term General Electric Shareholders [View article]
6 Dividend Stocks I Purchased For My IRA [View article]
Housing Starts And Industrial Production Rose In March [View article]
A Start-Up Dividend Portfolio For Beginners [View article]
This New Budget Proposal May Limit Your Annual Retirement Income [View article]
This New Budget Proposal May Limit Your Annual Retirement Income [View article]
This New Budget Proposal May Limit Your Annual Retirement Income [View article]
Currency Hedged Japan ETF Rallies 40% On Plunging Yen [View article]
A Smart Way To Look At A 'Dumb' Investing Strategy [View article]
This New Budget Proposal May Limit Your Annual Retirement Income [View article]