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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: accountclosed who wrote (37672)	11/27/1998 5:54:00 PM
From: Knighty Tin	Respond to of 132070

AR, If I had my cat o' nine tails.... <G> I set allocation according opportunity and need. Not always in that order. My income portfolio is my income. Yes, I get some modest money from other sources, but this is my main spending money. It is nearly always at least 30% of the total. Right now it is 50% as I see better, safer returns in my income strategies than in my cap app strategies. That has to do with market levels and premium levels on options. The Cap App and 90/10 each range from 10% to 40% of the total. Right now, 90/10 is 40% and Cap App is a miserly 10%, which is about as low as I go. The Pizzazz portfolio is sort of off balance sheet. That is where I take risks that allow me to play hunches without doing much work. It is also where I keep the horse racing and blackjack money. It is where I blow off steam. Oddly enough, it has always been the best performer, but the returns are, to say the least, subject to wild swings. The IRA is allocated just like the other 3 portfolios, with no pizzazz. The difference is, there are things I cannot do in my IRA, especially in the income generation area, that I do regularly in my taxable accounts. That has cost me a lot of return over the years and, after the fact, I am not certain that I didn't give up too much flexibility for the tax scam. I do know that I haven't contributed to the IRA for a decade and would not if I took down a regular job. However, if I find a sucker, er, employer to set up a 401-k where they match a portion of my contribution, that is a different game. That I would do all day. Though I made my living for awhile managing money for the Intercorporate Dividend Tax Exclusion and for Tax Spreaders with options and futures, taxes don't impact my thinking much. I do some things, like selling CEFs to offset capital gains distributions, but, for the most part, I make as much money as I can and pay taxes with a smile on my face. MB