View Full Version : Saving and Investing your income
Melonie
07-21-2014, 01:58 PM
^^^ All I can say is that 'ridiculously high' interest is a good thing when you're the one it's being paid to.
In regard to a US taxpayer 'bailout' probability, all I can say is that some highly improbable gov't financial actions have indeed taken place recently.
In the way of an update, since my post on July 14th, FPRTX ( Franklin's federal and state tax free PR bond based mutual fund ) is up about 1% while also paying 5.55% federal and state tax free 'interest'.
In regard to the 'removal' of PR's former corporate 'tax haven' status for US corporations during the Clinton years, those US corporations have indeed now found a very acceptable substitute. They use untaxed foreign earnings as collateral for debt to finance the ( friendly or hostile ) takeover of a competitor company whose corporate HQ is located in a low tax foreign country ... and then officially move corporate HQ for the new merged company to the former competitor's existing offshore corporate HQ location a.k.a. 'inversion'. See the latest 'inversion' du jour courtesy of Forbes ...
(snip)Walgreens is the U.S.’s largest pharmacy retailer with 8,200 stores across 50 states. America’s drugstore, it has saturated the U.S. market. Most of Walgreens’ yearly $72 billion in sales and $2.5 billion in profits come from the U.S. and are taxed here. Yet the company is considering a controversial move to lower-taxed Switzerland. An Americans for Tax Fairness Executive Summary says the move could cost American taxpayers $4 billion over five years.
The move is known as an inversion. Think of it as a corporate renunciation of U.S. citizenship. Walgreens won’t be alone if it follows through. The biggest involved AbbVie, U.S. pharmaceutical company going Irish by buying Shire for $54 billion(snip)
Eric Stoner
07-22-2014, 08:05 AM
Yes, 9 % is GREAT; IF the bonds and other debt instruments are honored by an entity ( city , state , corporation , public authority , commonwealth ) that is ABLE to pay same.
Puerto Rico has an annual budget of $ 9.6 billion. They have a total debt of $73 billion. Much of that borrowed money is backed by future tax receipts i.e. revenue bonds.
The total population is 3,7 million and dropping. 1,000 people leave Puerto Rico every week. The total debt divided by population equals $20,000. Unemployment is 14 % and half of all households earn less than $15,000 per year. Puerto Rico has a LOT of genuinely POOR people. The island's debt has been downgraded by Moody's , S & P and Fitch to junk status.
Here is where it gets tricky - about 2/3 of all muni bond funds are holding Puerto Rico bonds and are almost certain to suffer some sort of a loss. Will that be enough impetus for a Federal bail-out ? Highly unlikely. Even if there is a default, the actual effects would be easily managed and absorbed by the U.S. economy. For Puerto Rico it would almost certainly lead to some sort of outside fiscal monitor and renew calls for either statehood or independence. Would an independent Puerto Rico honor preexisting debt ?
Is there a Puerto Rican Alexander Hamilton with the smarts and courage to do that or would a Chavez, Castro or Kirchner be more likely ?
Melonie
07-22-2014, 08:14 AM
For Puerto Rico it would almost certainly lead to some sort of outside fiscal monitor and renew calls for either statehood or independence.
... either of which would arguably justify a federal taxpayer 'bailout' to maintain the status-quo.
Eric Stoner
07-23-2014, 08:27 AM
... either of which would arguably justify a federal taxpayer 'bailout' to maintain the status-quo.
More interesting than it might appear at first glance. There WERE some excellent reasons for the U.S. as a whole and U.S. corporations to maintain Puerto Rico's commonwealth status. It used to be a major corporate haven with cheaper workers than on the mainland and very favorable tax laws. Not so anymore. Could that status be restored ? Who knows ? Maybe. Will it ? Maybe. Would the U.S. bail out the state of Puerto Rico ? Doubtful. Would it bail out the independent country of Puerto Rico ? Why on earth would the U.S. do that ?
Eric Stoner
07-23-2014, 08:36 AM
Just noting that we've spent a LOT of time on just one type of investment i.e. high interest paying debt instruments. And just one source of same i.e. Puerto Rico.
Are there other type investment suggestions ? Anyone have questions about the stock market ?
Not being critical in any way , shape or form. Inter alia, I am trying to make sure we focus on the practical and veer away from anything "political".
Melonie
07-23-2014, 01:29 PM
^^^ OK then ... let's talk about shares of Apple and/or Microsoft !!!
michele11
07-23-2014, 04:12 PM
Haha!
Melonie
07-24-2014, 03:15 AM
^^^ or Walgreens and/or AbbVie ( div Abbott Labs )
or this week's 'hot' stock Time Warner
Eric Stoner
07-24-2014, 07:38 AM
Lol. What do you want to know ? Or to say about them ?
Melonie
07-24-2014, 09:48 AM
well, to be specific, what's your opinion on Walgreens ? They appear to be in a position where their after-tax earnings are about to increase by 10+ percent with no change in sales volume or pricing levels.
Eric Stoner
07-29-2014, 06:49 AM
My understanding is that a LOT of the rise in Walgreens stock can be attributed to the favorable tax treatment it will be gaining from its "inversion" deal to become a Swiss corporation. It is one of several U.S. corporations to pursue such a strategy.
Melonie
07-29-2014, 01:14 PM
^^^ yup, exactly !!! Thus worthwhile as an investment, or has the US tax benefit addition to profit margins of the 'new' Swiss corporation already been 'priced into' the Walgreens share price ?
Eric Stoner
07-30-2014, 10:36 AM
^^^ yup, exactly !!! Thus worthwhile as an investment, or has the US tax benefit addition to profit margins of the 'new' Swiss corporation already been 'priced into' the Walgreens share price ?
By now it probably has.
Melonie
07-30-2014, 12:29 PM
^^^ thus the old investor's adage 'buy the rumor' ( i.e first mention in financial news media ) but 'sell the news' ( confirmation in financial news media that the deal is actually going to happen ).
Eric Stoner
06-30-2015, 07:59 AM
The news yesterday on both Greece and Puerto Rico was not good. Leaving Greece aside for the time being ( although I can't stifle a chuckle every time I think of how Corzine bet so heavily on Greek debt of all things ) Puerto Rico is in a pickle. $72 billion in debt for 3.5 million people ( it lost 200,000 people in just one year ) ; Puerto Rican GOL debt trading at 68.5 cents on the dollar ( it was 77 cents Friday and was issued at 93 ! ) and the Governor now saying that Puerto Rico's debt is "unpayable" i.e. "we don't have the money to make our debt payments ". Back in the 1970's Bear Stearns and others made a fortune buying NYC debt at 20 cents on the dollar.
Obama has asked Congress to make Puerto Rican entities eligible for Chapter 9 Bankruptcy ( I wonder if that will start a trend for some U.S. states ? ) but has clearly stated that there will not be any Federal bailout.
Bahuba
07-01-2015, 06:57 AM
Large cap dividend stocks with good credit ratings. Of course buy in hundred lots, not sure how you'd buy less. Forget you own them. Commodities, options, foreign debt, growth stocks, all that takes specialized knowledge to regularly profit plus a lot of time to manage.
SubSpace666
10-12-2016, 01:42 AM
BUMP!! Stupid question, but how much money do you think is a good enough chunk to invest when you first start out??
LAChloe
10-12-2016, 04:59 PM
BUMP!! Stupid question, but how much money do you think is a good enough chunk to invest when you first start out??
Put $1000 in a Vanguard account and buy VFINX. You could probably even do it with less.
Gia2608
10-12-2016, 08:09 PM
It depends on what type of account you have and which brokerage it is with. They all have min. limits. I believe Scott Trade is really low; my Dad has been trying to get me to open an account there forever.
kingb
10-16-2016, 07:31 AM
you need to make hard money investments . inbox and we can talk more on the subject
Gia2608
10-16-2016, 12:59 PM
Hard Money, like hard money real estate loans? Please elaborate.
kingb
10-16-2016, 02:40 PM
here are a list of some hard money investments that can gross you a good income to fall back with on your road to retirement
1) Min Sweepstakes Casinos
( 2) Payday loans Stores
( 3) Automobile Title Pawn stores
(4) Rent to Own centers
( 5) Small Finance Company
(6) defaulted debt buyer business
(7) Mortgage Company
(8) Trucking Company
( 9) Freight logistics company
(10) Private Equity Fund Business
(11) Down payment Gift company
(12) Private Fire Department
(13) Private Police Department
( 14) Strip Club
(15) Insurance Brokerage
(16) Real Estate Brokerage
(17) Adult Stores
(18) Rental Car or car share company
( 19) Roadside Assistance Service
(20) Private School
(21) Mobile Home Dealership
( 22) Portable Storage building
(23) Private Real Estate Investor service ( foreclosure and Tax lines certificates )
(24) Buy Here Pay Here Auto Lot
(25) Nail Salon and Spa business
(26) Night Club business
(27) Sports Bar and Grill
(28) Private Sports Team
(29)Mobile billboards company
( 30) Tractor trailer Road Assistance service
( 31) Private Trash Company
(32) Service Nonprofit
(33) Home Health Care Service
( 34) Private Ambulance service
(35) Funeral Home Business
(36) Private emergency Care Center
(37) legal Escort Service
( 38) Record label company
( 39) Modeling and Sports Agency
( 40) Minority Crisis Center
( 41) Non emergency Medical Transport
(42) Stock Brokerage Business
(43) Gym & Fitness for women
( 44) lingerie store for women
(45) Private Phone Card lottery business
(46) Minority Business Consulting Service
(47) Commercial Loan Broker Business ( SBA Loans, Factors, Private Businesses Loans, Commercial Hard Money, Bridge Loans, Venture Capital )
(48) Bail Bonding Business (Nation Bonding Service )
(49) Private satellite Cable Company ( Dish network Agent or Direct TV Agent )
(50) Your own Cellular Company ( interconnection agreement with Art&T , Sprint, TMobile or Versions to use there service lines )