Investing 102

[GregWeld]

Gotta LOVE those dividends!!!!

04/10/2012 MO ALTRIA GROUP INC
type: QUALIFIED DIV
$6,150.00

[Sieg]

Originally Posted by GregWeld

Gotta LOVE those dividends!!!!

04/10/2012 MO ALTRIA GROUP INC
type: QUALIFIED DIV
$6,150.00

Heck that might even cover the first service on the Toter.

[booah]

I have a question.
I have shares in an energy company CoP and they are about to reposition the company splitting the refineries and downstream side of the company to become Phillips 66. When the split happens they are giving every shareholder 1 Phillips 66 share for every 2 CoP shares they own. If you don't have the brokerage set up to accept the shares they will automatically sell the new Phillips 66 shares and give you the cash. You get hit with capital gains for the income tax year.
My question is: Do companies such as this lose share value right off the bat and then gain or is it just a guess?
I need to know what to do within a week and get accts set up keep, the Phillips shares or take the money and run, which is the default easy option.

[GregWeld]

Originally Posted by booah

I have a question.
I have shares in an energy company CoP and they are about to reposition the company splitting the refineries and downstream side of the company to become Phillips 66. When the split happens they are giving every shareholder 1 Phillips 66 share for every 2 CoP shares they own. If you don't have the brokerage set up to accept the shares they will automatically sell the new Phillips 66 shares and give you the cash. You get hit with capital gains for the income tax year.
My question is: Do companies such as this lose share value right off the bat and then gain or is it just a guess?
I need to know what to do within a week and get accts set up keep, the Phillips shares or take the money and run, which is the default easy option.

Keep all the shares.... and yes -- you're per share value will get readjusted to reflex the split. BUT --- I'd hold both companies.

From there -- if anyone had a crystal ball and could see the future -- we'd all be rich.

[GregWeld]

Originally Posted by Sieg

Heck that might even cover the first service on the Toter.

Or two tanks of diesel!

[Sieg]

Originally Posted by GregWeld

Or two tanks of diesel!

I should have known you upgraded to larger tanks.

[Woody]

Originally Posted by GregWeld

So if you wake up and see Annaly Capital (NLY) down it's because it went "ex-dividend" today... so it's down equal to the dividend payout... This is totally normal. Don't freak out!

Greg,

Can you explain this. It seems like if the stock price goes down "equal to the dividend payout," your return would be zero. What am i missing?

[jeff71]

Wow... theirs a lot of info to read through here.

I read through about 15 pages and didn't see much on Roth IRA's. I listen to Dave Ramsey daily and he swears by Roth's.

Greg whats your thoughts?

[Bow Tie 67]

Originally Posted by jeff71

Wow... theirs a lot of info to read through here.

I read through about 15 pages and didn't see much on Roth IRA's. I listen to Dave Ramsey daily and he swears by Roth's.

Greg whats your thoughts?

I'll try to quote Greg correctly " Best gift the government gave us "

[toy71camaro]

Originally Posted by Bow Tie 67

I'll try to quote Greg correctly " Best gift the government gave us "

i was going to say something similar.. but, didnt want to misquote him. heheh.


If i recall.. Roth IRA = THE BEST.. you pay taxes now, and if your money grows to hundreds/thousands/millions later, you dont have to pay squat on that when you take it out.

But, there is some wiggle room, where it may make more sense to contribute to a company 401k/pre-Tax ira. if your on that "tax bubble" amount, and dumping money into a 401k can lower your tax bracket, it may be a wise decision to do that.. but thats something you'll have to look into, and decide.