Tag: capital gainsSort
Taxing Matters, Eggs, eBay, and Stupid Portfolio Tricks
My wife was trying to sleep and she's waking up and saying "What's wrong with you?" What could I tell her, that I was cracking up over a financial book? ---I've got to tell you, there were times when I had some of the best laughs I can remember in recent memory, like when you're telling the accountant you can save him taxes by not paying his fees.
Today's obsession with short-term blinks of the investment eye is Wall Street's attempt to take the market cycle out of the performance picture. Similarly, total return hocus-pocus places artificial significance on bond market values while it obscures the importance of the income produced. WCM users will have none of it; the investment gods are angry.
Crash! The 2007 thru 2008 financial crisis halved 401(k), IRA, and Mutual Fund values in a matter of months. For many, retirement dates had to be pushed back; for others, new jobs had to be found. The tragic flaw? No income allocation in the investment program. Market value builds egos; income pays the bills.
Most people enter the investment process tip first. They hear something, grab an idea from a popular blog, accept a Cramerism or some motley foolishness, and think that they are making investment decisions. Rarely, will the right-now, instant-gratification, Internet-generation speculator think in terms that go beyond tomorrow's breaking news.