Investing 102

[GregWeld]

Originally Posted by XLexusTech

When a Company issues these what does it mean to the rest of the stock?
Meaning since these are are more secure then comoon shares... would it drive down their price?

Problem... say you have Co. x shares of stock.. Co. X issues new Senior notes... will that drive your share price down?

That depends on what their overall balance sheet looks like -- and the reason for issuance. If they're borrowing money for the WRONG reasons then yes - it would affect the stock negatively.

Notes pay INTEREST and as such need to pay a higher rate than dividends because of the tax treatment (interest is ordinary income - dividends are taxed at the dividend rate).

[GregWeld]

Originally Posted by slow4dr

The one thing I have been really thinking about lately is starting an LLC for the rental property. Many of the regulars at biggerpockets have recommended starting one for any rental venture. The problem I see is that technically you will need one for each property. What are your thoughts about that?

Sorry -- I thought you were asking about investment LLC's.... you're asking about asset protection.

Be very careful about the intended use of LLC's for asset protection when you are the sole control. They don't work very well for cases like that. Be certain you get a lawyer and tell them what you're trying to do. Listen carefully to his response.

My advice is to simply carry an umbrella policy for liability. They're very inexpensive -- and more importantly - since the carrier doesn't want to pay out - they will defend you as well. Look at your coverage as the more you have the less the carrier will want to be liable for - so they'll defend more vigorously...

If you have a 1MM policy somebody will sue you for 2MM -- the insurance company is only on the hook for a mill... big whoop.... but if you have a 10MM policy - somebody will sue you for 20MM and that puts some deep hooks in the carrier.... and they're going to work hard to not have to pay out and certainly don't want to pay out 5 or 6MM even in a settlement! So they let the dogs out!

[GregWeld]

Pretty good - easy to understand RETIREMENT info here...


http://www.nbcnews.com/business/7-re...nked-1C7480802


I couldn't agree more with TWO statements --- START EARLY -- and BONDS suck for retirement... we live too long and they have no growth to handle inflation. That retirement planning is so yesterday!

[GregWeld]

This is pretty funny --- not as in a joke --- but it matches what's happened in my household. The entire family is "hooked" on Apples (AAPL) products. The article calls this the "Apple tax".

I don't currently own any of the shares. I can't figure out what's going on with the wild swings this stock has gotten into. We'll see if it levels out or goes UP once the year ends (people locking in the 15% gain tax).

http://www.nbcnews.com/business/appl...sion-1C7535330

[Sieg]

The Apple phenom has me baffled to some degree........I see the younger generations taking extreme measures to create their own individuality. Tattoos, piercings, hair styles, attire, etc. Yet they all want to be the same when it comes to their personal electronic device image.

I'm not pro fruit primarily due to heavy proprietary nature of the brand. JMHO that's obviously not hip.

Disclaimer: Wife = iPhone. 14 year old son MacBook, iTouch, iPhone. 11 year old daughter iPod, iTouch, iPad, MacBook..........those would cover my front or rear suspension needs nicely for years to come.

[GregWeld]

Originally Posted by Sieg

The Apple phenom has me baffled to some degree........I see the younger generations taking extreme measures to create their own individuality. Tattoos, piercings, hair styles, attire, etc. Yet they all want to be the same when it comes to their personal electronic device image.

I'm not pro fruit primarily due to heavy proprietary nature of the brand. JMHO that's obviously not hip.

Disclaimer: Wife = iPhone. 14 year old son MacBook, iTouch, iPhone. 11 year old daughter iPod, iTouch, iPad, MacBook..........those would cover my front or rear suspension needs nicely for years to come.

I don't think it's about individuality - I think it's about what "works". Once you go Mac you never go back.

BTW -- That comes from a guy whom often thanks Bill for his house and a few other niceties!

[Sieg]

Originally Posted by GregWeld

I don't think it's about individuality - I think it's about what "works". Once you go Mac you never go back.

BTW -- That comes from a guy whom often thanks Bill for his house and a few other niceties!

So you're Bi-Electronical?

[GregWeld]

Originally Posted by Sieg

So you're Bi-Electronical?

I don't know.... I've never looked!

[WSSix]

I've never had a problem with PC's. Apple products are nice but, to me, not necessary or worth the money. I'm old school like that though. I have no smart phone and have no intentions of getting one. I read maps instead of paying for GPS devices. I also don't like touch screens compared to buttons. That's ok though, I'll put the money I save having my old cell phone into my savings and stocks.

[glassman]

I'm not a techi, but innovation has made Apple stellar the last decade.5. The new products, not so innovative. Great products though. It's hard to say whether it will go up from here, but my monies not going into it.

Mike