ler@ihuxb.UUCP (Litzhoff) (12/10/85)
Here are a few questions for all you financial counselors out there? As a new investor in the market my first goal is to build a working portfolio(i.e. buy and sell stock building capital). I only have a few thousand to work with. How can I retain my profits so I can build a portfolio if the goverment takes its fair share? Please do not suggest IRAs. I would like the money now not in 30 years when I am dead.
johnl@ima.UUCP (12/13/85)
/* Written 11:01 am Dec 10, 1985 by ler@ihuxb in ima:net.invest */ > As a new investor in the market my first goal is to build a working > portfolio(i.e. buy and sell stock building capital). I only have a > few thousand to work with. How can I retain my profits so I can > build a portfolio if the goverment takes its fair share? Don't buy or sell very often. Really. Remember, the tax treatment is better for stock held a year or more, and regardless of that, you lose a few percent of your capital in commissions every time you buy or sell. All of the evidence I've ever seen says that people who trade a lot do worse than those who don't. They may have more exciting lives, but they are not richer. John Levine, ima!johnl PS: You might look at an IRA even if you're not planning to leave your money in it until you're 70. The penalties for withdrawing early are only about 10%.
suhre@trwrba.UUCP (Maurice E. Suhre) (12/13/85)
In article <1177@ihuxb.UUCP> ler@ihuxb.UUCP (Litzhoff) writes: >As a new investor in the market my first goal is to build a working >portfolio(i.e. buy and sell stock building capital). I only have a >few thousand to work with. How can I retain my profits so I can >build a portfolio if the goverment takes its fair share? > Simple. Aim for capital gains. The government won't get very much (40% * marginal tax rate) which might be 12-18% of your profits. That is, you can probably keep 80-90 percent of the capital gains. When you get affluent, you can worry about tax shelters and the alternative minimum tax. I don't remember if the dividend exclusion was repealed or not. Maurice {decvax,sdcrdcf,ihnp4,ucbvax}!trwrb!suhre
morse@leadsv.UUCP (Terry Morse) (12/14/85)
> Don't buy or sell very often. Really. Remember, the tax treatment is > better for stock held a year or more, ... The tax treatment is better for stocks held 6 months or more, as of 6/22/84. That is the requirement for long term capital gains. -- Terry Morse (408)743-1487 { ihnp4!amdcad!cae780 } | { allegra!sun!sunncal } !leadsv!morse