Featured Insights —
- By James Redpath
- May 13, 2013
Over 90% of the time, the answer for the past 27 years was no (since the tax reform act of 1986). In light of the changes taking effect in 2013, the answer may no longer be as clear:
- The top Federal individual rate is 39.6%;
- The itemized deduction phase-out basically adds 1.2% more;
- Passive investors may be subject to the 3.8% Medicare tax on pass-through entity income; and
- Many states are proposing to increase their individual tax rates
- By Sy Harding
- May 10, 2013
Long secular bull markets in any asset class tend to fool us into believing their prices only go up. Tulip bulbs, Beanie Babies, baseball cards, Florida real estate, internet stocks. And they do only go up and it's exciting – until their bubbles implode.
Gold has one of the clearest patterns of long trends in both directions that convince investors they are endless.
Gold bugs suffered through a 20-year secular bear market when gold plunged 70% in value from an exciting record peak of $850 an ounce in 1981 to a low at $250 an ounce in 2001. By that time gold was thoroughly despised and out of favor.
However, at that point it then launched into an exciting 10-year bull market in 2001 in which it rose from that low of $250 an ounce to its next record peak at $1,900 an ounce in August, 2011.
- By Chuck Carnevale
- May 09, 2013
It seems like I've been writing only about dividend growth stocks for what seems like forever. Therefore, I felt it would be a refreshing change to alter my focus from dividend income to pure unadulterated growth. Although I'm a major proponent of investing in dividend growth stocks, unlike many of my fellow dividend growth investor friends, I am also a big believer in the benefits of investing in non-dividend paying growth stocks with the potential for generating a higher total return.
- By Frank Holmes
- May 08, 2013
During the first week of May every year, the maxim, "Sell in May and Go Away," gets taken out, dusted off and powered up as a reason to sell stocks. The rhyme is more than just a catchy urban legend: June, July, August and September have historically been the weakest months of the year for the S&P 500 Index.
Yet even if seasons trigger certain events, when the snow falls in Minnesota in May, Midwesterners need to throw on their winter gear and roll out snowblowers, not lawnmowers.
- By Steven D Hamilton
- May 07, 2013
Taxes and Messy Ownership Claims with a Game of Chance
It's fun to think about winning the lottery
There is a (former) waitress in Grand Bay, Alabama who did. She worked at a Waffle House. Enter Edward Seward, a regular at the restaurant. Seward liked the lottery. As Alabama did not have a lottery, he would travel to Florida to buy tickets. He also liked giving away the lottery tickets to the waitresses at the Waffle House. Our protagonist – Tonda Lynn Dickerson – had an agreement with four other waitresses that – if they ever won – they would share the winnings equally.
Public Financial Markets >
Return to GE’s Glory Days?
General Electric (GE) was once revered as one of the bluest of all blue-chip companies in the world. During its glory days, GE was respected as an industrial conglomerate that manufactured some of the world's best jet engines, locomotives, appliances and even the highly regarded General Electric light bulb. However, as best I can determine, the roots of General Electric's ultimate >>
The Last Of The 2008 Doomsday Scenarios Is Fading Away
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued
Three Reasons to Buy Gold Equities Today
A strong stomach and a tremendous amount of patience are required for gold stock investors these days, as miners have been exhibiting their typical volatility pattern. That's why I often say to anticipate before you participate, because gold stocks are historically twice as volatile as U.S. stocks. As of March 31, 2013, using 10-year data, the NYSE Arca Gold BUGS Index (HUI) had a >>
It’s Still Fool’s Gold For A While Yet
A Case for Owning Commodities When No One Else Is
Economy & Finance >
No Free Lunch, No Free Sushi
Everybody loves a free lunch, myself included, and many in Japan would like free sushi too. Despite the short term boost in Japanese exports and Nikkei stock prices, there are no long-term free lunches (or free sushi) when it comes to global financial markets. Following in the footsteps of the U.S. Federal Reserve, the Bank of Japan (BOJ) has embarked on an ambitious plan of doubling >>
Here’s Why Next Week’s Economic Reports Are The Most Critical in Months
M&A Bankers Away as Elephant Hunters Play
Global Business >
Why China is Tunneling a Mind-Boggling 800 Miles in 2 Years
Would it surprise you to discover that China is planning to add 800 miles to its subway system over the next two years? That's the distance equivalent to building a network from Dallas to Chicago in less time than the U.S. Congress can resolve a budget! In 2015, when the infrastructure build-out is complete, China's subway track alone will be a mind-boggling 1,900 miles, according to >>
A Taxing Situation in Europe
Out With the Dragon, In With the Snake
Taxes & Financial Planning >
Peek-ing Into "Rollover As Business Startup" IRAs
They are called ROBS – an acronym for "Rollovers as Business Startups." The idea is to own a business through your IRA. Perhaps your IRA could be the bank in the transaction. Perhaps the business will go exponential, which would do wonders for your IRA balance. Me? I do not particularly care for them. Why? This field is so fraught with landmines I cannot help wonder why I would >>
Judge Rips Into The IRS Over Prosecution Of Widow
Time to Change to a C-Corporation?
Estate Planning >
Can a Court Revoke your Advance Health Care Directive?
If you have an advance health care directive, can a court or guardian overrule your instructions after you become incapacitated? That question was explored recently in a Pennsylvania appeals court case, In Re Border, 2013 PA Super 94 (PA Superior Court, April 23, 2013). Russell Border was a 62 year old resident of the Golden Living Nursing facility in Berks County Pennsylvania. In >>
Dangers of Giving Your Home To Your Children Explained
Case Illustrates Dangers of Do It Yourself Wills
Property Investments >
Fixing the Mortgage Mess
Two landmark developments on August 16th give momentum to the growing interest of cities and counties in addressing the mortgage crisis using eminent domain: The Washington State Supreme Court held in Bain v. MERS, et al., that an electronic database called Mortgage Electronic Registration Systems (MERS) is not a "beneficiary" entitled to foreclose under a deed of trust; and San >>
Will Speculators Rescue the Housing Market?
Real Estate, Especially Commercial Real Estate, Still A Major Problem
Special IRA/Charity Option Before January 31st
I had a call last week on what the rules are for the 70 ½ IRA owner making a direct distribution to a charity. You may recall that – if you are a certain age – you can make distributions – up to a limit - from an IRA directly to a charity. The age is 70 ½ and the limit is $100,000. Why would you do this? There are several reasons: The first, of course, is that you are >>