Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (10558)	8/8/1999 10:45:00 AM
From: Trumptown	Respond to of 57584

Here's a few thoughts... First of all a couple years ago, I was able to get a Roth IRA going ...taxes are paid on the money before it goes in...but NO cap gains are paid after that. However, the money is not available till 59 1/2. I strongly suggest that anyone who is qualified open a Roth IRA. I trade it aggressively and have been very fortunate... Secondly, I find that when I try to factor in taxes as part of my decision process, I sometimes end up with a write-off instead of a tax. So, right or wrong, I have eliminated cap gains from my decision process...seems to work for me... SR

To: Rande Is who wrote (10558)	8/8/1999 10:50:00 AM
From: xcr600	Read Replies (2) \| Respond to of 57584

At what point, on long-term stock holdings, is it advantageous to give up on the capital gains tax advantages by holding through the year, in favor of taking profits, re-loading at a lower price and just paying Uncle Sam the extra tax? I have this same debate with myself over core holdings such as MSFT and LU. For the most part, they trade nicely on technicals so re-entry would not be all that hard to time. In hindsight, it looked like paying the taxes when MSFT was at 100 would have been the way to go. I am not an options person, but one could write some covered calls to protect the long position and at least come away with the premium. A friend of mine who works for Merrill advises against trading core positions. Says most aren't disciplined enough to put those dollars back into that specific stock when they should. Hard to imagine a broker not recommending trading! They like the churn. x