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 : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (2337)	12/8/1997 2:45:00 PM
From: Boca_PETE	Respond to of 42834

Dipy: Savy people seek to maximize after-tax income, tax-free income, and unrealized non-taxable income. The current tax system gives the preferred lower 20% cap gains rate to those who hold shares and sell them as needed to generate needed cash (The total return approach). Those who maximize received dividend income pay tax on those dividends at the ordinary tax rate based upon their tax bracket (assuming we're talking about (non-IRA/Keogh/401K money). Of course, unsavy investors may demand their dividends, but that tact will cost them. P

To: sea_biscuit who wrote (2337)	12/8/1997 3:30:00 PM
From: Kirk ©	Respond to of 42834

stock buybacks will go "out of fashion" and dividends will make a comeback... Hmmmm....This is why I like Bob's concept of "Total Return" and "asset allocation" so much. Add that to how I evaluate my mutual funds - I look at after tax returns so I can compare them to individual stocks. This gives more weighting to funds that have low turnover and thus lets me keep my money longer and when I do sell, it is at the lower capital gains rate. I have no need for an IRA if I can get all my gains at the low 18% vs ordinary income rate of 31% when I retire. Thus, I put my high turnover funds - mostly internationals now - into my IRA's since real life it is better to diversify rather than try to pick individual international stocks. I also mostly pick stocks in the field I work and let the experts take care of the rest of the market. i.e. mutual funds. regards Kirk out