Another thing that I hope everyone will/can begin to see -- when staring at all of these charts and stuff that I've been hammering on..... YOU DON'T HAVE TO CATCH THE NEXT GREATEST, BIGGEST INVENTION OR THE HOTTEST STOCK TIP in the stock market!
This is why I wanted everyone to see names like McDonalds - Kinder Morgan - Phillip Morse etc.... that these BORING old stodgy "names" actually can have some pretty stellar charts! And they can have some pretty darn good dividends!
FORD was a pretty GIANT GAIN... for those with the guts to see the sky wasn't falling and they could see the DIFFERENCE that FORD didn't have to borrow from the government (us) to stay alive... if you caught that (bought that) at $2 and rode it to $10 -- that is a 500% gain!
So let's use this as an example. BE CAREFUL about taxes! If you bought at 2 and sold at 10 -- within ONE YEAR AND A DAY - you'd OWE regular income tax rates on that GAIN.... but if you held it ONE DAY AND A YEAR - that becomes LONG TERM CAPITAL GAINS and is max tax rate of 15%
If it's within the IRA or 401K - then there is NO TAX DUE YET --- that tax is when you WITHDRAW. So hopefully - when you retire - your tax rate is LOWER than when you're working. If you bought that within a ROTH!! Katie bar the door -- those gains are TAX FREE. PERIOD. That's the beauty of a ROTH IRA. Everyone that qualifies should have a ROTH IRA.
|