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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (27504)	4/19/1999 8:30:00 PM
From: Ingenious	Read Replies (3) \| Respond to of 152472

Jon, taxes do drive my investment strategies, hence selling in a panic is really not a good move (i too bought in at $50). It will be interesting to see if good earnings from MSFT and QCOM and others make the market realize the being a PC maket like compaq, gate, dell, is the problem and that decreasing the cost of the technological "razor handle" will increase the number of people who can/may buy the blade and shave.

To: Jon Koplik who wrote (27504)	4/19/1999 10:00:00 PM
From: Reagan DuBose	Respond to of 152472

Jon, OT*OT*>> If a security is held in a self-directed IRA or variable annuity, there would be no tax consequences at the time of trading, although ordinary income tax rates would be paid when funds are ultimately distributed (many years hence, we hope). This makes IRAs and Variable Annuities the ideal vehicles for the avid day-trader. For many long time-horizon investors (those with a high percent of portfolio turnover per year)the benefit of tax deferred growth will exceed the penalty of being taxed at ordinary income rates when funds are withdrawn. At the very least, tax returns in the intervening years are much simplified, which has got to be worth something! And best of all, purchase and sale decisions become independent of tax considerations. For similar reasons, there is an advantage to holding a mutual fund within an IRA or variable annuity, if the fund regularly generates and reinvests dividends, interest, or capital gains. Taxes on the gains would be deferred until distribution time, resulting in more rapid growth of the fund. I guess a more compact way of summarizing the above is: keep frequently traded securities and income producing mutual funds in tax-deferred accounts; keep long term stocks in regular accounts. Reagan