The Tax Hit That Loyal Investors Will Take In 2014 >> ignited the formation of this country based on an individuals right to bitch about taxes (Boston Bay Tea Party).
Not quite a sophisticated reading of the history or the events or the reasons.
This is sort of a start, and droll as well:
www.newyorker.com/magazine/2010/05/03/tea-and-sympathy-2
'Today’s reactionary history of early America, reductive, unitary, and, finally, dangerously anti-pluralist, ... compresses a quarter century of political contest into “the founding,” as if the ideas contained in Thomas Paine’s “Common Sense,” severing the bonds of empire, were no different from those in the Constitution, establishing a strong central government. '
etc.
The Tax Hit That Loyal Investors Will Take In 2014 I wonder whether many investors will move to ETFs from their funds in taxable accounts after being hit by large taxable distributions this year, or at least send their new money to ETFs from now on.
I think more investors will move either to traditional index mutual funds, or their ETF counterparts, after seeing large capital gain distributions. Especially since the index funds and indexed ETFs most likely will have no capital gains distributions, and just as good and probably better performance. Or as you said, at least with new money.
"Stock fund investors could be harder-hit, said Morningstar analyst Russel Kinnel. He estimates that U.S. domestic stock funds might be sitting on gains of around 20 percent and could end up paying
16 or
17 percent of their value to shareholders as gains."
Do Financial Experts Make Better Decisions Than The Rest Of Us ?
2014 estimated (preliminary) year end distributions Yes. I just identified a (small) holding of mine left over from 2004 where the NAV appreciation over the decade is so low and the projected distribution so high that selling now is basically a wash.
I get $N in cap gains by selling now, or $N in a combination of cap gains and ordinary income by holding. Obviously selling is better - same income, but 100% of it is long term cap gains.
Only problem in selling now is that I don't want to buy a dividend with the proceeds.
As someone else posted in this thread, it looks like small caps are likely candidates for a further sell off (making the actual dividends even worse that current projections).
2014 estimated (preliminary) year end distributions
2014 estimated (preliminary) year end distributions
Bill Gross Likely Took A Big Pay Cut To Join Janus
An Early Line On The M* Domestic Stock Fund Manager Of The Year
The Tax Hit That Loyal Investors Will Take In 2014 FYI: (Follow-Up Article)
If you are the kind of steadfast investor who buys a mutual fund and holds it forever, prepare to pay for your loyalty next April, when you settle up your 20
14 tax bill.
At the end of this year, many mutual funds are expected to distribute sizeable capital gains to shareholders who will have to pay taxes on them.
Regards,
Ted
http://www.reuters.com/assets/print?aid=USKCN0IA1X220141021
Biotech ETFs are Red Hot.
5 Low-Risk Funds For A Volatile Stock Market
Schwab to Offer Free Robo Advice.
John Waggoner: Can You Retire On A $1 Million ? "My guess is that there are 'OLDER' posters here born earlier then apx 1960 or '64 who have large assets who will disagree with me on the difficulty of accumulating $1M"
No sir, as a mater of fact I not only agree with you 100% but I have often expressed my concern over that fact. Our generation had a much easier and better chance to accumulate significant resources by being frugal and saving/investing as much as possible. These days the system is so rigged against workers that they are increasingly lucky to even have a stable 40hr/week decent paying job with minimal benefits.
Historically, if this type of situation is allowed to persist and degenerate, significant social unrest has sometimes been the result.
Vanguard: Lawyer-Turned-Whistleblower' Betrayed' Fund Giant Frankly I don't know if Vanguard is guilty or not. I just know that there are a lot many other things what are wrong with investment management and if they get even 1% of notice this thing is getting, we should all be happy.
John Waggoner: Can You Retire On A $1 Million ?
Eat copious quantiles of macaroni & cheese and your grocery bill shrinks - but your waist line expands. :)
It absolutely costs more to eat healthy.
The flip side of that is that health insurance may cost less for those (healthy) people who can most afford to pay for insurance.
Found this related item about North Shore - LIJ Care Connect - a new individual insurer, affiliated with North Shore LIJ (a hospital complex serving primarily Long Island, NY):
"North Shore-LIJ Care Connect ... [is requesting] for next year a decrease of
1.3 percent. ... North Shore-LIJ also had a large proportion of members take up Platinum memberships—the most expensive—which could indicate that their customer base was generally better off and therefore in better health, and lower cost to insure."
http://www.northshorelij.com/hospitals/news/behind-new-yorks-2015-health-insurance-rates
John Waggoner: Can You Retire On A $1 Million ? Keep the weather warm & hurricanes out of there tampabay. We'll be hanging out next month.
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I've found we tend to adjust our life styles to our income by and large. Pitch cable and save $100+ a month.
Rely soley on public wifi and save another $50-100.
Drive a clunker and save a bunch on car & insurance.
Eat copious quantiles of macaroni & cheese and your grocery bill shrinks - but your waist line expands. :)
It absolutely costs more to eat healthy.
What To Expect From Your Bond Mutual Fund My two bond funds have annual returns of +9.7% 5yr, 7+% 10 yr
I EXPECT the same for the future, I guess that's stability... or stable enough
I hope you're right. 7-
10% annualized returns for junk bond funds going foreward would seem indicative of a robust economy and correspondingly strong stock market (not that I mind). Remember, however, that junk, like most bonds. also had declining interest rates as a tail wind over the past
10 years. I'm not at all certain rates can continue to decline.
