Investing 102 - Page 231 - Lateral-g Forums

**GregWeld** · #**2301** 11-19-2012, 11:07 AM

Well --- Personally I'm glad all you guys are in the market now.... it makes life interesting doesn't it?

What a difference two days make! Friday nice - Monday even nicer! And that's why I say -- when you have some dough -- just put it in. You can't telegraph these kinds of days. Either UP or DOWN!

Here's what I think will happen (or could happen) -- people are hoping against hope that Congress is going to solve for the fiscal cliff... so we get these spikes. My guess is - we'll get a spike or two on the downside before it's all over. Pelosi and Boenher aren't going to just roll over. They'll get greedy at some point and we'll see a disappointed market move.

Remember! We buy on those kinds of days --- not on days like Friday and today. Even if it's 50 cents or a dollar per share... it's the SWING we want if at all possible. The difference is the dollar down to a dollar up swing is 2 bucks. But over the long haul that little bit of difference isn't going to make or break an investors portfolio! It's just that if you think you're in a wild market swing period -- then if you can catch a dip -- it makes you feel better.

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Now ---- I read an article over the weekend that tried to explain the big selloff we've had as --- ALL THE RICH PEOPLE ARE SELLING THEIR BIGGEST GAINERS IN ORDER TO LOCK IN THE 15% CAP GAINS RATE....

I totally agree with "some" of that. I did it myself. Why not? I had half a million in long term cap gains... might as well capture that at 15% tax rather than wait next year - maybe it goes up from there and maybe it goes down - but they've telegraphed that they want this rate UP from here...

BUT --- THERE'S ALWAYS A BIG BUTT --- All these so called rich guys are then sitting on CASH. What are they going to do with it?? Bonds don't pay squat -- CD's? Ha! What a laugh.... Real estate? Yeah maybe.... once we see the tax rates... but my guess is - the majority will go right back into stocks.

Where else are you going to make any money on your money? I'll take 5% dividend, and maybe some capital growth, and pay 20% tax -- vs -- 2% and pay nothing (muni bonds) and be guaranteed zero capital growth.

In the end -- it will return to MAKING MONEY. The tax is just a byproduct of that.

RECOVERY ROOM · #**2302** 11-19-2012, 05:45 PM

Great info GW

CRCRFT78 · #**2303** 11-19-2012, 09:22 PM

What a nice upswing today.

CRCRFT78 · #**2304** 11-19-2012, 09:23 PM

I believe its days like this that make it worth sticking through all the down days.

Bucketlist2012 · #**2305** 11-19-2012, 10:13 PM

Quote:

Originally Posted by CRCRFT78

I believe its days like this that make it worth sticking through all the down days.

Yes sir...That is what Long term investing is all about...

Just like the 400 point swings during the year, you have to stick with it..

Long term, the dividends, and eventually the gains will be worth it.

Always keep enough cash for your everyday stuff and a rainy day fund, and let the rest ride long term...

Happy Investing to you all..Errr, I mean Happy Thanksgiving, errr...I mean both...

**GregWeld** · #**2306** 11-20-2012, 01:13 AM

Quote:

Originally Posted by CRCRFT78

I believe its days like this that make it worth sticking through all the down days.

It isn't easy to be a real "INVESTOR".... regardless of how much skin you have in the game. But if you stick with it --- and I mean TRULY stick with it. You will be thankful.

I don't care what you're invested in - it doesn't have to be stocks. It can be real estate... it can be pigs... but you've got to know that at some point you'll have losers and at some point the pigs you bought won't be worth what you paid for them. But stick around long enough and the pigs will make baby pigs and eventually they will get sold and you'll make some money.

XLexusTech · #**2307** 11-20-2012, 07:40 AM

Quote:

Originally Posted by GregWeld

It isn't easy to be a real "INVESTOR".... regardless of how much skin you have in the game. But if you stick with it --- and I mean TRULY stick with it. You will be thankful.

I don't care what you're invested in - it doesn't have to be stocks. It can be real estate... it can be pigs... but you've got to know that at some point you'll have losers and at some point the pigs you bought won't be worth what you paid for them. But stick around long enough and the pigs will make baby pigs and eventually they will get sold and you'll make some money.

FB is my pig

XLexusTech · #**2308** 11-24-2012, 08:33 AM

On Income Tax and Employee granted stock options.. (restricted and Non)
When does the capital gain clock start (1 year short vs 1 year+ 1 day Long)

Does is start on Grant date?
Does it start on Vest Date?

For example.. if I get options granted year one.. vest 25% per year over 4 years... on the first 25% doe that clock start on day one of grant date or dat one of vest date?
So if I sell 2 days after 1st vest is that short or long term Cap gains?

**GregWeld** · #**2309** 11-24-2012, 10:58 AM

Well --- sadly --- these are ORDINARY INCOME and you'll pay taxes at the current rate on the date you exercise. No long term ANYTHING on Options.

Remember too -- that when you exercise --- let's say 100 grand worth... that will RAISE your rate on all of your other salary. Be prepared to be hit with a whopper tax bill.

Back in the day --- We had massive Microsoft options.... we'd sell (they had 10 year expiration dates - so about 1996 you were forced to sell or let the option expire) what we had to... the next year - we'd sell to pay the taxes. While at the time you're whining about it - it's not a bad problem to have.

**GregWeld** · #**2310** 11-26-2012, 10:48 AM

I put some cash to work first thing this morning in Annaly (NLY) and Con Ed (ED)... just nibbling and adding to my holdings. Both of these have been stepping down for awhile now - and as they do - the dividend PERCENTAGE rises. I practice what I preach and I scale in and or scale out. As an example -- I held 7,000 shares of ED -- This morning I bought 1,000 more. At 4+ percent return -- it's a decent hold and I think it's been selling off due to the big storm and the expected costs. I view this as a temporary issue. Not that this is a stock that moves all that much to begin with (which is why I own it in the first place!).

I added 10,000 shares of Annaly.... at these prices -- it counteracts the lower dividend % of shares like ED. I would repeat - this is not a stock that should be bought and forgot. It's a pure dividend play and as such - is much more volatile. These kinds of shares are where I park cash.