Tax avoidance is a good way to save some money legally. Some even went to the length to prolong life support for several weeks so to qualify better tax exemption the following year. Here are what I did.
- Sold most profitable stocks that I owned over 12 months in taxable accounts. I bought back some. I maintained a 15% tax bracket last year, so the tax bill from Uncle Sam is virtually 0 (virtually due to more tax on social security if applicable).
I bet this is the same trick Ronney and Buffet used. This could be the last year for this low tax rates.
- Converted some money from 401K to Roth this year.
- Will sell some long term losers next year hoping to offset some gainers.
- Unloaded/moved some dividend stocks to 401K from taxable accounts.
- Gifted my son some appreciated stocks.
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(c) TonyP4 2012. Written in 5/10/12. Last updated in 5/10/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
Thursday, May 10, 2012
Modern Portfolio Theories
Most fund managers learn modern portfolio theories from Ivy League universities. The theories are faulted. However, some gained Nobel prizes using faulted theories - a bad reflection of today's silly Nobel prize committee. They do not work in real life and I and many others have proved them wrong many times in real life.
The so-called modern portfolio theories are most likely based on bad testing parameters/assumptions. Unfortunately they're still supported by the ivory towers. All the students taking these courses should ask for refunds from these universities. Most likely these professors are driving an old Toyota and have never made good money in the market besides in 'teaching', selling 'books' and/or running hedge funds to cheat your money.
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(c) TonyP4 2012. Written in 5/10/12. Last updated in 5/10/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
The so-called modern portfolio theories are most likely based on bad testing parameters/assumptions. Unfortunately they're still supported by the ivory towers. All the students taking these courses should ask for refunds from these universities. Most likely these professors are driving an old Toyota and have never made good money in the market besides in 'teaching', selling 'books' and/or running hedge funds to cheat your money.
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(c) TonyP4 2012. Written in 5/10/12. Last updated in 5/10/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
Wednesday, May 9, 2012
Our trade with China
Free trade has its benefits and some minor disadvantages (less jobs to our workers for example). You do not want to grow sugar cane in Alaska. Chicken feet are delicacy in
China, but not fit even for our cattle.
However, we have to ensure both partners play fairly. If China dumps the products to force our shops to close and then raise prices, then we have to step in. We are subsidizing our industries like free research and farm loans, so it is quite hard to argue that China subsidizes their industries.
When China offers the cheapest and the best product, our consumers win. When China makes money on the low-end products, they may have money to buy our more expensive products, farm products...
China buys our debts to stimulate buying their products so to keep their workers working. The debt obligation is less when we devalue our own currency - actually we're the currency manipulator while China just tags to our currency for now.
We need to limit our spending, both the government (on wars...) and consumers (on big houses...). The logic is so simple that even I can understand - I never took any economic class.
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(c) TonyP4 2012. Written in 5/09/12. Last updated in 5/09/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
China, but not fit even for our cattle.
However, we have to ensure both partners play fairly. If China dumps the products to force our shops to close and then raise prices, then we have to step in. We are subsidizing our industries like free research and farm loans, so it is quite hard to argue that China subsidizes their industries.
When China offers the cheapest and the best product, our consumers win. When China makes money on the low-end products, they may have money to buy our more expensive products, farm products...
China buys our debts to stimulate buying their products so to keep their workers working. The debt obligation is less when we devalue our own currency - actually we're the currency manipulator while China just tags to our currency for now.
We need to limit our spending, both the government (on wars...) and consumers (on big houses...). The logic is so simple that even I can understand - I never took any economic class.
-------
(c) TonyP4 2012. Written in 5/09/12. Last updated in 5/09/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
Saturday, May 5, 2012
Life according to A + B
Man with money + Man with power = Corruption
Man with money + Woman with good look = Perfect Match
Man with no money + Woman with good look = Divorce
Man with no money + Woman with avg. look = Endless Love
Man with big belly + Woman with same = Mission Impossible
(in making a baby)
Israel + Neighbors = Endless Wars
Israel + USA = WW3
China + USA = Fighting spouse
One Loser + One Loser = Two Losers
(merger of two failing companies)
Youth + Stupidity = One page of our life
Old Age + Intelligence = One chapter of our life
Queen + Waving hand = Parasite
Smart + Hard Work + Luck = Success
Success - Hard Work = Genius
Man with money + Woman with good look = Perfect Match
Man with no money + Woman with good look = Divorce
Man with no money + Woman with avg. look = Endless Love
Man with big belly + Woman with same = Mission Impossible
(in making a baby)
Israel + Neighbors = Endless Wars
Israel + USA = WW3
China + USA = Fighting spouse
One Loser + One Loser = Two Losers
(merger of two failing companies)
Youth + Stupidity = One page of our life
Old Age + Intelligence = One chapter of our life
Queen + Waving hand = Parasite
Smart + Hard Work + Luck = Success
Success - Hard Work = Genius
Are investors parasites to the socety?
First most of our initial investment money is from hard-earned money during our work life unless you're lucky to have inheritance.
The retired rich could live in a decent life with the money accumulated. However, we invest for better return for ourselves, work our own way (vs paying mutual fund managers to do so), take some risk ourselves... We do not think we're the parasites of the society. Our investment would help some business grow. They pay taxes and hire workers who in turn pay taxes. We also pay taxes too on our profits as investors.
I used the word of parasite to describe the royal families of Britain and Japan, which both had done great misery to China in Opium Wars and WW2 respectively. I never call investors as 'parasites'. There are many to learn to be a good investor (I'm still learning).
If we live to 70s or 80s, we will still be physically able to work on my investment, but most can't as a laborer. Hence, we will contribute to societies longer as a group.
Similarly, it is unfair for the hard-working, rich folks less chance going to heaven than the lazy, welfare recipients whose majority are the parasites of the society.
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(c) TonyP4 2012. Written in 5/5/12. Last updated in 5/5/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
The retired rich could live in a decent life with the money accumulated. However, we invest for better return for ourselves, work our own way (vs paying mutual fund managers to do so), take some risk ourselves... We do not think we're the parasites of the society. Our investment would help some business grow. They pay taxes and hire workers who in turn pay taxes. We also pay taxes too on our profits as investors.
I used the word of parasite to describe the royal families of Britain and Japan, which both had done great misery to China in Opium Wars and WW2 respectively. I never call investors as 'parasites'. There are many to learn to be a good investor (I'm still learning).
If we live to 70s or 80s, we will still be physically able to work on my investment, but most can't as a laborer. Hence, we will contribute to societies longer as a group.
Similarly, it is unfair for the hard-working, rich folks less chance going to heaven than the lazy, welfare recipients whose majority are the parasites of the society.
-------
(c) TonyP4 2012. Written in 5/5/12. Last updated in 5/5/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
Thursday, May 3, 2012
Is Social Security going to survive?
Contrary to
popular belief, SS will not run out of cash. The politicians will not
allow so otherwise they'll not be re-elected. Some simple steps:
1. Move money from the budget or just print more money.
2. Tax more like the coming extra for Medicare from your pay check.
3. Immigrate more young and hard working foreigners. Ensure you do not let their parents come in to collect SSI.
4. Reduce the aged population with fast food deals for seniors, early bird specials, more legalized drugs specific for seniors, unlimited alcohol for seniors (a stone killing seniors in the car and others in the street), guns for recreation for seniors, free sex for folks over 70 every night at all senior centers...
As long as they die happy, every one is happy.
5. Incentive to die early. If they suffer, let them die peacefully. Give them tax credit on estate to die below their life expectancy. How about one extra percent exemption for each year below life expectancy? There is a lot of saving if we can cut the most expensive health care in the last two years for most.
6. Give seniors Viagra free. It will make prostitutes fully employed with new customers from that age group. It is a promise that Obama could not accomplish except by his 'body' guards (whose body?) - foreign employment does not count! Excessive exercise will end their lives earlier and happily. A personal observation.
7. Write to Dr. Ruth for more practical solutions.
1. Move money from the budget or just print more money.
2. Tax more like the coming extra for Medicare from your pay check.
3. Immigrate more young and hard working foreigners. Ensure you do not let their parents come in to collect SSI.
4. Reduce the aged population with fast food deals for seniors, early bird specials, more legalized drugs specific for seniors, unlimited alcohol for seniors (a stone killing seniors in the car and others in the street), guns for recreation for seniors, free sex for folks over 70 every night at all senior centers...
As long as they die happy, every one is happy.
5. Incentive to die early. If they suffer, let them die peacefully. Give them tax credit on estate to die below their life expectancy. How about one extra percent exemption for each year below life expectancy? There is a lot of saving if we can cut the most expensive health care in the last two years for most.
6. Give seniors Viagra free. It will make prostitutes fully employed with new customers from that age group. It is a promise that Obama could not accomplish except by his 'body' guards (whose body?) - foreign employment does not count! Excessive exercise will end their lives earlier and happily. A personal observation.
7. Write to Dr. Ruth for more practical solutions.
Tuesday, May 1, 2012
Advantages of Technical Analysis
* The Institution (insurance companies, pension funds, mutual funds...) uses it and they MOVE the market.
* I do know some folks make big money with TA.
* The price movement usually tells the reasons why it moves and volume confirms it. There are many factors not shown in the financial statement such as lawsuits pending, market trend, competition...
* It tracks the last two big plunges (2000-2002 and 2007) pretty well. They will not warn you for the upcoming plunge (as they depend on past data) but they warn you on potential, bigger lose.
My experience is to use it to track the market and specific stocks you want to trade. The stock moves due to the market, then the industry the stock in and then the fundamentals of the stock.
I invest longer term in taxable accounts (holding profitable stocks over 1 year) and a swing trader for retirement accounts. My objective is to make money at the least risk. There is no label on what kind of investor I am. Same as political party or a religious group. Once you're in certain group, you will be biased and forget your primary objective in investing.
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(c) TonyP4 2012. Written in 5/1/12. Last updated in 5/1/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
* I do know some folks make big money with TA.
* The price movement usually tells the reasons why it moves and volume confirms it. There are many factors not shown in the financial statement such as lawsuits pending, market trend, competition...
* It tracks the last two big plunges (2000-2002 and 2007) pretty well. They will not warn you for the upcoming plunge (as they depend on past data) but they warn you on potential, bigger lose.
My experience is to use it to track the market and specific stocks you want to trade. The stock moves due to the market, then the industry the stock in and then the fundamentals of the stock.
I invest longer term in taxable accounts (holding profitable stocks over 1 year) and a swing trader for retirement accounts. My objective is to make money at the least risk. There is no label on what kind of investor I am. Same as political party or a religious group. Once you're in certain group, you will be biased and forget your primary objective in investing.
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(c) TonyP4 2012. Written in 5/1/12. Last updated in 5/1/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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