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Politics : Stockman Scott's Political Debate Porch
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To: puborectalis who wrote (89152)7/13/2012 6:27:28 PM
From: Hawkmoon  Read Replies (1) of 89467
 
I certainly am not seeing anything criminal about dividing up the stock..

Especially when the INTEREST BEARING preferred (L) shares are held in taxable accounts.

The (A) shares are in an IRA. So yes.. if they soar in value, then the gains are tax DEFERRED until disbursement..

But what if the company's A shares go to zero? Then he has no ability to claim a capital loss.


Then there is this statement

"But suffice it to say that Romney & Co. appear to have placed very low valuations on the risky shares that went into their retirement accounts and that, if they had placed a higher value on these shares, they would have sheltered less money from taxes.

I'm missing something here? What does it matter what the price of each share of stock was? What matters is the total amount of money invested..

If I invest $1,000,000 at .10/share, I receive 10 million shares worth a combined value of $1 million.

If I invest the same amount of money at $1/share I receive 1 million shares valued at $1 Million..

The ultimate value of those shares will COMPLETELY DEPEND upon how successful the company becomes and the value of my stock will climb accordingly.

In fact, having more shares is a detriment because it's harder to dump 10 million shares into the market than 1 million.

What this articles seems to me is an attack on IRA and 401K savings plans. IF the author is against tax-deferred (since tax is paid when money is withdraw from the IRA at retiremet), then he should just say so..

I'm sure he's obviously against the Roth IRA... ;0)

Hawk
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