Equity CEFs: The Best Return-Of-Capital Funds, Part II [View article]
ROC reduces your cost basis. If you sell after holding the shares for over a year, then your gain is the sale price(less commissions) minus your (lower) cost basis.....and it will be a long term capital gain, taxed at whatever rate applies for LT capital gains for your tax bracket for that tax year.
However, don't forget that the gain itself could push your income into a higher tax bracket, which could mean higher taxes on the LT gains. So, generally speaking, it's best to sell off part of your holdings in any one tax year, as opposed to the whole thing.
Equity CEFs: My Article Performances From 2011 [View article]
A large portion of the distributions ETV and ETB are return of capital, which is not taxable.....in a regular account. If you have these funds in a traditional IRA where ALL withdrawals are taxed, then even the return of capital portion of the distributions becomes taxed when withdrawn. So, putting option income CEFs in a traditional IRA becomes self defeating.
Protected Principal Retirement Strategy: CEFs Equals Closed-Ends Falling? [View article]
Not always....as in the case of EXG. EXG and many other Buy/write equity funds make up the difference, so to speak, by writing/selling options on their holdings. They don't necessarily have a managed distribution. See ETY, ETV, ETB, ETW, BDJ, CII, JPZ, JSN, and JLA for example.
Equity CEFs: The Best Return-Of-Capital Funds, Part II [View article]
For an IRA account, you may want to look at bond funds, such as EHI. Bond funds have generally been very consistent dividend payers with fewer cuts than the stock funds. They do not offer any tax advantages, so an IRA is the perfect place for them. Use the fund screener tab on cefconnect.com to look for CEFs of interest......pun intended. :)
Why 401(K) Plans Don't Work In This Market [View article]
I have no doubt that plans and their rules regarding repayment of loans may indeed vary. The main point is that before you take that loan, you need to know the rules and the risks. Maybe a loan at a higher rate, but from a different source might be a more viable alternative.
Why 401(K) Plans Don't Work In This Market [View article]
Be cautious about taking loans on your 401(k). If you are laid off, you must immediately pay back the entire amount or withdraw the balance. Since you were just laid off, repaying is generally not an option. The withdrawal will be a taxable event. If you are not 59 1/2 years of age, it gets worse as you are penalized 10% for early withdrawal. I do taxes professionally. I've seen the carnage firsthand.
A Game Of Find The Ponzi - Tilson's Next Short [View article]
If either mREITs or BDCs fall as a result of WT's "analysis", it could be a major buying opportunity. I was able to add on to my positions in muni-bond closed end funds at the beginning of 2011 thanks in part to WT's remarks on the likelihood of mass defaults in that sector.
An Introduction To Dividend Growth Investing [View article]
I am in a similar position with very similar investments. Since I do not use all of the income thus generated by the account, I save the excess and have now started investing in DG stocks. So, my account will become sort of a hybrid DG account moving forward. I don't see any necessity to liquidate any of my current holdings as long as they are performing as they should.
The Risks Of Residential/Mortgage REITs Are Too Many [View article]
If you buy high and sell low then, yes, it will mean BIG LOSSES. mREITS should be purchased for income generation, not stock price appreciation. If the stock price tanks, but the dividends keep rolling in, then there is really no reason to sell. All the REITs took a big hit price-wise in 2008. That was a buying opportunity of a lifetime. You should be asking yourself why you didn't buy more, not lamenting selling for a loss.
Equity CEFs: Eaton Vance Announces 10% Repurchase Program For Its Option-Income Funds [View article]
Vahania: in a Traditional IRA account, tax is paid at your regular tax rate on all money withdrawn. So, the ROC tax advantage from option income funds would be lost in this type of account. You would have to pay tax on ROC money when withdrawn from the account.
If the account is a Roth IRA, then it wouldn't matter so much. Assuming you follow the withdrawal rules for Roth accounts, you would not pay any tax on any money withdrawn. It's sort of a tie. The ROC isn't really helping your tax situation, but in a Roth it isn't hurting anything either.
After The Ex-Dividend, Your Payment Date [View article]
08-09-2012 is not a Friday. It is a Thursday. If you sell on 08-09, then yes, you are entitled to the upcoming dividend. If you sell before 08-09, then you miss the dividend, which the new owner will receive.
Equity CEFs: The Best Return-Of-Capital Funds, Part II [View article]
However, don't forget that the gain itself could push your income into a higher tax bracket, which could mean higher taxes on the LT gains. So, generally speaking, it's best to sell off part of your holdings in any one tax year, as opposed to the whole thing.
Equity CEFs: My Article Performances From 2011 [View article]
Equity CEFs: My Article Performances From 2011 [View article]
Thanks.
Monthly Pay Dividend Dogs: December Stocks Vs. Funds And Trusts [View article]
Protected Principal Retirement Strategy: CEFs Equals Closed-Ends Falling? [View article]
Equity CEFs: The Best Return-Of-Capital Funds, Part II [View article]
All Tricks, No Treats, For Mortgage REITs [View article]
Why 401(K) Plans Don't Work In This Market [View article]
Why 401(K) Plans Don't Work In This Market [View article]
A Game Of Find The Ponzi - Tilson's Next Short [View article]
An Introduction To Dividend Growth Investing [View article]
The Risks Of Residential/Mortgage REITs Are Too Many [View article]
Equity CEFs: Eaton Vance Announces 10% Repurchase Program For Its Option-Income Funds [View article]
If the account is a Roth IRA, then it wouldn't matter so much. Assuming you follow the withdrawal rules for Roth accounts, you would not pay any tax on any money withdrawn. It's sort of a tie. The ROC isn't really helping your tax situation, but in a Roth it isn't hurting anything either.
After The Ex-Dividend, Your Payment Date [View article]
The Yields On These Closed-End Funds Are Highly Misleading [View article]