MLM Passive Income

If my partnership sells a house as a seller-financed mortgage, is the interest received portfolio income? Essentially, the partnership acted as the loaner, where the buyer repaid the loan to the partnership, with part of the payment going towards principle and the other part to interest. So is that interest considered ordinary income, even though the partnership only had one other similar arrangement, or is this portfolio income? I should mention that the partnership had no other income source other than these two mortgage sales. I should also mention that the sale occurred ten years ago, and was not booked as an installment sale. BTW, this makes a big difference on the individual partners' tax returns, so I'm hoping for a good answer.

What is the annual income of the portfolio & also its current value? Your aunt is leaving you the following portfolio: 109 General Electric bonds 35 lots of a stock that has a dividend yield of 1.5% & a price of 70.37 73 February 2039 Treasury bonds You are hoping that the annual income from the portfolio will be enough to cover your two years in film school at a cost of $41,000 per year. Will you be able to pursue your dream? If, on the other hand, you liquidated the portfolio, what is its current value?

How is duration used in the management of fixed income portfolio?

if interest rates go up 1%, what happens to a fixed income portfolio with a duration of 5 years? I was asked this question by an interviewer today and need an answer ASAP! Thanks so much!

Can Portfolio Management fees be adjusted against STCG and income? A wealth Management Company charged fees much more than the STCG (I have no LTCG from the same portfolio). Can it be adjusted against STCG and my income for tax purposes? If so, wherein ITR2, do I enter the figures?

My Bank wants to lend money, since it is our major source of income, but the portfolio is bad, how can we? We have embarked on an agressive recovery program, but the recovery is slow. Because of this we had to place a moratorium on lending, however, it is crippling us because lending is our major source of income. Now some of our major customers are threatening to take their businesses else where if we can't lend them funds. We need advice.

Which Ministry can let a minister in the portfolio earns the highest income? I mean which ministry can give the minister most chances of earning 'dirty' money? Other than the PM, DPM and Minister of Finance posts. the PM is offering me a portfolio post, i don't know which i should choose. i don't dare to ask for the Ministry of Finance because i understand he won't give me.

What software will chart investments held in a portfolio by type (int'l, growth-income,aggressive, etc.)? I'm looking for software that, when entering # of shares held & their corresponding ticker symbols, it will track/chart these selections by type (i.e. aggressive, growth/income, international, value, etc.). Ideally, I would like the software to come up with a % of portfolio value of each category --- I have MS Money, but its categories are much too broad (only large-cap, small-cap, mid-cap, etc).

How can a Bank maintain customers and make income when it has a poor credit portfolio?

What type of income do you like to earn the most? Do you prefer earned income, portfolio income, or passive income? Is passive income or portfolio income taxed less than earned income?

select at least three investments to create a $50,000 fixed-income portfolio? can someone help me with this

changes to taxation on canadian income funds? I heard there was a change in 07, i think now income fund dividends on not taxed as portfolio income anymore?

If you loose money in a stock that is in your roth ira portfolio, can you write this off of your income tax? I just lost money in my roth ira account and I'm guessing I can't count it as a lose on my taxes, but I wanted to double check.

I need good ways to invest for fixed income need to pull 25-35k out of 400k portfolio?

If i make 20k for 2009 but invested 10k into my stock portfolio do I declare 10k as my personal income or 20k? assuming when i file taxes its still there.

My personal investment portfolio just about right do you think? I'm a 53 years old medical professional with a stable job and great income. Currently my portfolio consists of 20% international stock funds,40% domestic stock funds, 10% short term bond funds, and 30% prime money market funds in one of the largest mutual fund company with low expense ratio. Does this sound about right? I recently unloaded most of my intermediate an long term stock funds into prime money market because I see interest rates rising soon. Does it sound about right in the current economy?

what can i expect for a typical yearly income with an investment of $1,000,000 in medium risk portfolio? what can one expect for quarterly dividends with an investment like this? Do they fluctuate a lot? Also, is vanguard a good place to invest or is there a better one.

How do I recognize High income high risk bonds? If I needed to develop a portfolio for someone looking for high income and willing to accept some risk.

Can I obtain more attractive real estate financing terms by using a stock portfolio as additional collateral? I'd like to purchase a rental property but I'm having a hard time obtaining financing because I am currently a graduate student and don't have any income. However, I do have a stock portfolio valued at about $295,000. Is it possible to leverage the stock portfolio as additional collateral to obtain financing? Thanks for your help.

I am invested in fixed income funds as well as equity funds. My broker rebalances my portfolio once a year.? This rebalancing occurs in December of each year. I also have an amount in a cash account with this financial advisor. With my equity fund balance being steadily eroded in this current market, should I ask that everything be placed in cash and fixed income until the roller coaster subsides -- or, should I just wait it out? How flexible are financial advisors about doing a mid-year rebalance if you contractually agreed to a once a year rebalance? Since I'm a neophyte, will I lose additional money if the current equities are sold at a deflated price in order to be moved into cash or fixed income? Is this a reasonable request, or will I incur additional fees -- I currently pay on a quarterly basis the total of 1.5% of my portfolio annually.

How do you think this will affect an investment portfolio? Suppose that you have a client whose investment portfolio you have been managing for the past five years. Suppose further that this client believes that the equity market will increase this year and wants to re-allocate his fixed-income investments to the equity allocation. If you decrease his bond allocation and increase his stock allocation, how will this affect the expected return and the standard deviation of the portfolio?

Can I start a business based off of a stock portfolio? Is it possible to start a business with my own money that is basically just my personal stock portfolio? Would the money put into the business be a tax shelter from my regular jobs income? Can I use all of the businesses profits to pay for my personal expenses thus avoiding taxes?

Any lenders out here to assist me in buying income producing real estate with no money down and my good credit I have excellent credit and wish to add rental properties to my portfolio for future income. Very adept at carpentry, remodel, etc. I would like to get some assistance in purchasing rentals in order to pay off and have another source for income within 15 years. Any possible way to get some insight on achieving this? I know nobody personally who does this to coach me a bit on do's and don'ts. Is it even feasible to try and attempt this without any downpayment startup cash? I do have equity in my home, is it worth trying to tap this? Is it a feasible option?

In an effort to manage a portfolio's risk, diversification and the equity/bond allocation is often mentioned a In an effort to manage a portfolio's risk, diversification and the equity/bond allocation is often mentioned and given a lot of weight. With bond yields relatively low, has anyone discussed allocating the equity portion to income equities and non=income equities. In this manner we could compare a portfolio with a 60% equity/ 40% bond with another portfolio in which we would have a 75% equity / 25% bond BUT the 75% equity is subdivided into 40% income equity / 35% non-income equity?

what shoud be the right asset allocation for ideal portfolio ? I am 29, married and have kid. after deducting all personal liabilities , i decided to spare Rs 2,61,000 for investment. asset allocation for my investment portfolio is such that - 19.2% in equity , 30.3 % in fixed income investment, 5.7% in metals like gold, 44.8 % in real estate. Please sugest is this right asset allocation or should i modify my portfolio ?

ideal portfolio in retirement with modest risk for growth and income?

How Does Personal Income Tax Relate to Consumer Math? I am working on my Grade 12 consumer math portfolio and and need help with the question...Describe how you applied or integrated concepts from other consumer math units. The units that my teacher said applies to Personal Income taxes are Personal Finances, Budgeting, Finances, and Real estate. So I'm not sure what to write for an answer

Should I invest for income or for growth? If I am a grad student in my late twenties and won't be working for a few years and have $150,000 to invest, would it be better to invest it in a portfolio designed to generate income in order to help with living expenses while im in college. Or would it be better to put $50,000 to the side for living expenses and invest $100,000 in mostly equity?

Which of the following restrictions applies concerning distributions to trust beneficiaries? Which of the following restrictions applies concerning distributions to trust beneficiaries? a. Special allocations of income types are allowed, assuming that they carry substantial economic effect. b. Special allocations of income types are allowed, even if not provided for in the trust instrument. c. Special allocations are allowed, but only for portfolio income items. d. Special allocations are allowed, but only in the trust’s termination year. e. Special allocations are not allowed under Subchapter J.

India- Fixed Income Portfolios? List some advantages & dis-advantages of investing in Rated Bonds with reference to FDs with Banks/ Corporates in the INDIAN context in term of absolute yields and pattern of interest rate volatility and frequency of change over the last 3 to 5years. FIXED INCOME PORTFOLIO SPECIALISTS ONLY PLEASE !!

In India for filing Income Tax Return-2 form, whether balance sheet is compulsory? I am an individual having income from rent and capital gains (by dealing in shares through Portfolio manager). I have filled ITR-2 form last year and presented the balance sheet. Whether balance sheet is compulsory for filing ITR-2. I am facing many difficulties in preparing balance sheet as my assets are less than liabilities. Can I show loss in the asset column for the difference in asset and liability vaue?

I have a good question about business, Making a profit - Then having to pay taxes on the gains. Can you help? I own multiple companies, all of which are pass-thru entities which appear on my personal return such as LLC's and S corps. From my understanding, Net Profits from one company can off-set net losses from other company. And I would simply pay tax on that amount? Say that amount is 50K positive for all the companies. What does that have to do with my salary, if I only paid myself 15K per the year thru payroll? Also how are gains taxed from portfolio income? Thanks Guys

How to ensure "capital" tax (instead of income) treatment for investment gains? I have a full-time job unrelated to the securities industry and I use a discount broker to manage my investments and would like to benefit from lower capital gains tax rates for my investment profits. My goal is to hold about 50-70 securities (ETFs, equities) in my portfolio at any given time and I anticipate holding each security for at least 6 months before disposing/selling it. I'd like to add to my positions gradually via dollar-cost averaging and use covered calls to reduce the cost basis. My intent would be to execute about 10-20 buy transactions per month (often I'd be adding to existing positions) and perhaps about 5 sell transactions per month. Would using such a strategy put me at any risk for being flagged an active trader and subject to having gains taxed as income instead of the more favorable capital gains (w/ 50% inclusion) rate? Furthermore, does the use of 15-20% margin significantly affect one's susceptibility to being flagged as an active trader?

Income Tax rates! Employees vs Investors? Last night i was printing out some comparisons on the U.S. income tax rates and how they differ and apply to the different types of incomes. (example) Earned income, Passive income, and Portfolio Income. Ive learned that the income that working people earn is taxed higher than what the investors get capital gain on! If any body is Educated on this Unique subject, please give me some insight ,opinion and detail. thanks See See!

An active management strategy for fixed income securities requires the fund manager to increase duration of th? true or false?An active management strategy for fixed income securities requires the fund manager to increase duration of the portfolio in anticipation of interest rate increases and decrease duration of the portfolio in anticipation of interest rate decreases.

Does anyone have a good reference for calculating basis in a partnership? I know the basics, but I'm looking for more particular items. For example, do guaranteed payments, deductions related to portfolio income, other deductions, foreign taxes, or other credits affect basis? I was thinking that the portfolio and other deductions do, but I'm unsure about the rest and am having a hard time finding a good reference material. Thanks much!!

How can I collect fee from managing a friend/relative 401K or IRA portfolio? If it will come from the 40K/IRA portfolio, will it be treated as a withdrawal from my friend/relative investment portfolio. Is another alternative asking my friend/relative to pay me directly from another source not her 404K/IRA account? Is this treated as a management expense from my friend/relative perspective and income to me? How is this done? Mind you, she is the one asking me to manage her investment and wanting to pay me for my service. Any response will be appreciated.

what is the best way to start investing on a fixed income? My wife and I are both on Social Security.We dont have alot of money,but enough to invest $50 to $100 each month.We are in our early 40's and would like to have a little nest for the future.I am very green when it comes to investing.I am a little leary about investment firms. I have heard some bad things.Dont know which ones i can trust.I would like a deversified portfolio just dont know how to safely deversify it.Also could you recomend a good book to get me started in understanding the investing world a little better.(stocks,bonds,mutuial funds,401's,Ira's)ect...A little advice would be greatly apriciated. THANK YOU TRENT& GINA. SAC, CAL.

How much would your portfolio have to be worth to be able to "live off the interest"? Theoretically speaking. Suppose you were changing careers and needed a steady income that would at least pay the bills, say 30K/yr., until you'd made the full transition.

what is the method of working out the yield of a property portfolio? For example :- if the value of a property currently is 250,000 and the rental income is 12,000 per year, what is the yield? i need to know how to work this out?

Can somebody analyse my portfolio so that i cud invest in MFs? I am 26yrs old,single (will be married in a year) and have dependent parents and sibling.I have an been working for 2yrs and have an income of 14k per month,I manage to save abt 3-5k per month.I would like to invest these funds in Mutual funds.Pls advice.I would like to participate with minimum risk options. Thanks in advance to all who share their views.

I have a good question about paying taxes from pass - thru entity businesses. Can you help me out ? I own multiple companies, all of which are pass-thru entities which appear on my personal return such as LLC's and S corps. From my understanding, Net Profits from one company can off-set net losses from other company. And I would simply pay tax on that amount? Say that amount is 50K positive for all the companies. What does that have to do with my salary, if I only paid myself 15K per the year thru payroll? Also how are gains taxed from portfolio income? Thanks Guys

If I am 13 years and have a stock portfolio, what tax rate am i charged on capital gains? Would i be charged my income tax, (0) or my parents, more than 0, also what would the tax rate be on both short term and long term capital gains? Thanks for the help!

Can I file taxes once for income and once for investments? This is a stupid question, but I'm young and have no clue about the answer. The 1099 for my stock portfolio for 2010 will be available by February 22nd, but there's a possibility that I'll file my taxes before then, so is it possible for me to do them separately or can they only be done together?

Which of the following is an example of the income effect during a period of inflation? A - A business receives a fixed price for the goods it sells while the price level is rising B - A bank owns a portfolio of assets that increases in value with the rising price level C - Your income rises at the same rate as the price level does D - You buy groceries that are becoming more expensive as the price level is rising

Conservative investment portfolio for a 75 year old man? After losing 50% of my savings I am concerned about future deterioration. Any suggestions for investing the remaining money? The only income I have is social security, I need additional money monthly from the savings.

Portfolio of MUTUAL FUNDS as opposed to trading? Can a steady reliable source of income be made by holding Multiple Mutual funds? As opposed to the gyrations of trading? Say weekly/monthly steady gains?

More tax for the wealthy; Is it up to the wealthy in our society to support the rest of the society? it seems? is beine that the wealthy don't pay enough taxes and therefore should pay more. A recent study indicated that 47% of the population doesn't pay any federal tax at all. Should investment income (portfolio income) be taxes at the same rate as ordinary income? What about the role of the alternative minimum tax in ensuring that the weatlthy don't get away without paying some income tax. How about the wealth distribution in America? Please pay particular attention to the role of capitalism in creating wealth for individuals as well as the estate tax.

I want to do trading as a portfolio manager...? I want to become a portfolio manager..do fixed income or equity trading..besides getting a CFA, what else would i need? Series 7? Series 63?....or both 7 and 63? Thanks

Im looking for a good book on bonds or fixed income assets? Basically Im tired of losing money in the stock market. I have some cash to invest now and am wondering where I can stash USD 500'000 for 6mo. - 5 years and get 4-5% relatively risk free return on investment. Would be nice to preserve assets and put some stability in my normal trading portfolio. Any tips on what to look at or any book you can recommend. Thanks in advance, Erik

How is Prudential ICICI Principal Protected Portfolio II to invest on? Comments: 1. They guarantee the capital invested 2. Invested amount will be exposed to the Indian Stock market and Fixed Income 3. Lock in Period is 5 years 4. Expected minimum return is 10-15 pct.

I have a question about my IRA account (additions, deductions, income, market fluctuations...? I'm looking at my Portfolio tracker (TRowe finally allow me to see it) and this is what I see: Beginning Value (as of 05/01/2006) $100.00 Additions$5,350.00 Deductions$2,040.00 Income$107.28 Market Fluctuation$235.98 Ending Value (as of 06/21/2007)$3,753.26 What do additions & deductions mean? I'm pretty sure I know what they mean but is it crazy for deductions to be over $2,000? Are these expenses Trowe charges? Dang they are high! How can I control this? This seems so wrong.

Want to reallocate IRA funds from stocks to income producing.? Currently I am 100% invested in agressive Mutual funds and now I want to rebalance my portfolio so that I can draw income. My question is - how do I / what is the best way to reallocate the IRA portion of my portfolio. I.e., CD's, short term bond funds, bank loan funds? Which is the most safe and produces the best income. Yeah I should ask an FA but I like to handle my own money... Thanks

mortgage refinancing to increase my investment portfolio? I am in mid twenties and have a house that is fully paid up. The rental income is around 5%/annum. I read a few articles about stocks, and as we all know, this is the best time to invest in stocks. As the return is always higher for stock and they are cheap nowadays. Should I sell my house and go for it? Or refinance the house? Or stay the same?? And of course, I am still optimistic about the stocks in long term. Please advise.

If you plan to rely on annuity income late in life, does it reduce the amount you have to have...? at the beginning of retirement? If you rely on income from bonds, dividends, and stock sales late in life, you need a cushion to protect you from a big drop in the value of your portfolio. If you sell most of your assets at, say, age 90 and buy an annuity, you don't need as much of a cushion because you have reduced market risk. If you follow this approach, can you safely start retirement with a smaller nest egg, or am I missing something? Thanks, Houyhnhnm

Suppose you hold a portfolio consisting of $250K worth of 30 day treasury bills.? Every 30 days your bills mature, and you reinvest the principal ($250,000) in a new batch of bills. Assume that you live on the investment income from your portfolio and that you want to maintain a constant standard of living. Is your portfolio truly riskless?

Do Roth IRA earnings count as income? Suppose the Roth IRA contribution salary limit holds at $100,000 or near it for a while. Eventually, the worth of my portfolio my grow to one million. In a bull market, I could easily make $350,000 for that year. Would those numbers count against my contribution limits? I know I really beat around the bush here, but I guess all I want to know is if IRA earnings count as income. Hope you enjoyed reading my scenario anyway, and I would appreciate any comments on that as well. Thanks!

With bond funds, do you receive income every month? I am about to invest in my own portfolio and just need a little advice.

If income tax is $3505 plus 28% of taxable income over 23,000$ how much is the income tax on a taxable income? 1. If income tax is $3505 plus 28% of taxable income over 23,000$ how much is the income tax on a taxable income of 35,000$? 2.is this statement true? suppose you invested 10,000$ in the stock market last year. how much money would be left in your portfolio with a 10% rise?. If there is a loss what is the percent decrease , to the nearest 10th of a percent in your portfolio

I want to make a good friend a partner and owner of properties in my portfolio.? Is it just a matter of getting my solicitor to draw up the necessary papers? There won't be any money involved I just want to make him a partner. This will be his first time as a property owner. How long does it usually take? The properties are earning good incomes and have good equity.

Will Democrat tax hikes jeopardize the retirement portfolios of millions of middle-income Americans.? . Washington’s ‘War Against Winners’ A cap-gains assault on private partnerships would strike a dagger into the heart of U.S. capital formation. Last Friday’s precipitous stock-market plunge, with the Dow Jones dropping 185 points, is all about Washington’s continued war on prosperity. The latest assault comes courtesy of House Democrat Sander Levin. Late last week, he introduced a bill that essentially would abolish the 15 percent capital-gains tax preference for risk investing, and raise it by 20 percentage points to the 35 percent corporate and personal rate. This goes beyond an earlier tax attack on a public offering by the Blackstone Group, and would slam into all private partnerships, including buyout funds, hedge funds, venture-capital firms, real estate partnerships, and oil-and-gas deals. Incidentally, while attacking capital gains, the congressional Democrats are killing initiatives for across-the-board cuts on wasteful appropriation bills. According to the Club for Growth, House Democrats defeated separate measures that would cut spending by 4 percent, 1 percent, and 0.5 percent. Does this mean the Democrats favor tax hikes over real spending control? It appears so. Washington economist Kevin Hassett says this is part of the Democrats’ “war against winners,” and he’s right on the money. In particular, these willy-nilly changes of the tax rules would have a chilling effect on capital formation, and could constitute the biggest attack on capital since the 1930s. As mentioned, the lightning rod in this tax-hike endeavor was the Blackstone Group, the private-equity giant that went public last week. Blackstone’s investment-fund profits are taxed at the 15 percent cap-gains rate, and since these profits come from high-risk investments, that’s how it should be. But Democrats in Congress view these profits as plain income, and greedily want a higher take. But plain ol’ income this is not. The recent crack up of two Bear Stearns sub-prime-mortgage hedge funds shows just how risky these ventures can be. Yes, there’s big money to be made when these private partnerships click. But the economy at large also is a beneficiary. Private buyout funds often save highly troubled companies from bankruptcy. They insert skilled managers who streamline operations and make businesses more efficient, a process that can ultimately lead to greater profits and business expansion. You know a lot of these companies: Chrysler, Staples, Sears, Domino’s, Dunkin’ Donuts, Toys“R”Us, Clear Channel Communications, Hospital Corporation of America. All of these firms were brought back from the dead thanks to private partnerships. Nobody knows for sure whether Congress will green-light the Democrats’ anti-growth agenda. The hope is that President Bush will veto any tax hike that lands on his desk. But the mere threat that Congress would embark on such a program of wealth destruction and economic impoverishment — all in the name of taxing “rich people” — has investors reeling. Ironically, a lot of today’s anti-cap-gains momentum is the handiwork of former Clinton Treasury secretary Robert Rubin. He actually believes a low cap-gains tax has no economic growth impact at all. However, back when Clinton and Rubin were running things, the personal income-tax rate was lifted from 31 to 40 percent, while the cap-gains tax was reduced from 28 to 20 percent, making for a 20 percentage point tax advantage for cap-gains over regular income. Flashing forward, the current Bush administration lowered the income-tax rate to 35 percent and the cap-gains rate to 15 percent, preserving that 20 percent differential. Hmm . . . Is Rubin saying the cap-gains tax advantage was good for the Clinton boom, but not the Bush boom? Truth is, that differential provides a strong incentive for entrepreneurial risk taking and higher-risk, cutting-edge investment — both of which lend real torque to the economy. Another unfortunate irony is that while Democrats think they’re striking out at the rich, they’re actually jeopardizing the retirement portfolios of millions of middle-income Americans. Firemen, police officers, and teachers, to name a few, are all represented by the big state and city pension funds. And these funds are heavily invested in the hedge and private-equity funds that the Democratic tax machine is targeting. Is this fact lost on the Democrats? And don’t they realize that two out of every three voters in recent elections owned stocks — either directly or indirectly? Are they attempting to commit political suicide? If the Democrats get their way, job creation will be adversely affected, too. Clearly, you can’t create new jobs in the private sector unless there’s a new or expanding business to create those jobs. And since new and expanding businesses require capital for investment funding, if you tax that capital more, you get less investment and fewer jobs. In short, you can’t have capitalism without capital. The process works for “rich people” and the middle class. Whenever Democrats wage war against the rich, the middle class becomes the collateral damage. This may be the law of unintended consequences, but it is something this Congress fails to understand. . ________________________________________

I want to know more about income tax of USA...? Being a student of finance, I am curious about the tax structure of a federal government. ( I am bangladeshi and as my country has no federal govt, the citizens only pay tax to the NBR or national board of revenue once in a year and there is no state tax). What I want to know is: say, you live in Newyork and earn $120000 per annum. you are an individual and have no family. How much will you give to federal govt, then to state and to any other authority as income tax? Can you show me this step by step in a easy way, please? Again, how can someone be entitled to investment tax credit and which securities are meant by that portfolio (?) invetment? what is the difference between tax credit and tax rebate and tax exemption?

Democrats are jeopardizing the retirement portfolios of millions of middle-income Americans. Firemen, police o Democrats think they’re striking out at the rich, they’re actually jeopardizing the retirement portfolios of millions of middle-income Americans. Firemen, police officers, and teachers, to name a few, are all represented by the big state and city pension funds. The latest assault comes courtesy of House Democrat Sander Levin. Late last week, he introduced a bill that essentially would abolish the 15 percent capital-gains tax preference for risk investing, and raise it by 20 percentage points to the 35 percent corporate and personal rate. This goes beyond an earlier tax attack on a public offering by the Blackstone Group, and would slam into all private partnerships, including buyout funds, hedge funds, venture-capital firms, real estate partnerships, and oil-and-gas deals. Incidentally, while attacking capital gains, the congressional Democrats are killing initiatives for across-the-board cuts on wasteful appropriation bills. According to the Club for Growth, House Democrats defeated separate measures that would cut spending by 4 percent, 1 percent, and 0.5 percent. Does this mean the Democrats favor tax hikes over real spending control? It appears so. Washington economist Kevin Hassett says this is part of the Democrats’ “war against winners,” and he’s right on the money. In particular, these willy-nilly changes of the tax rules would have a chilling effect on capital formation, and could constitute the biggest attack on capital since the 1930s. As mentioned, the lightning rod in this tax-hike endeavor was the Blackstone Group, the private-equity giant that went public last week. Blackstone’s investment-fund profits are taxed at the 15 percent cap-gains rate, and since these profits come from high-risk investments, that’s how it should be. But Democrats in Congress view these profits as plain income, and greedily want a higher take. But plain ol’ income this is not. The recent crack up of two Bear Stearns sub-prime-mortgage hedge funds shows just how risky these ventures can be. Yes, there’s big money to be made when these private partnerships click. But the economy at large also is a beneficiary. Private buyout funds often save highly troubled companies from bankruptcy. They insert skilled managers who streamline operations and make businesses more efficient, a process that can ultimately lead to greater profits and business expansion. You know a lot of these companies: Chrysler, Staples, Sears, Domino’s, Dunkin’ Donuts, Toys“R”Us, Clear Channel Communications, Hospital Corporation of America. All of these firms were brought back from the dead thanks to private partnerships. Nobody knows for sure whether Congress will green-light the Democrats’ anti-growth agenda. The hope is that President Bush will veto any tax hike that lands on his desk. But the mere threat that Congress would embark on such a program of wealth destruction and economic impoverishment — all in the name of taxing “rich people” — has investors reeling. Ironically, a lot of today’s anti-cap-gains momentum is the handiwork of former Clinton Treasury secretary Robert Rubin. He actually believes a low cap-gains tax has no economic growth impact at all. However, back when Clinton and Rubin were running things, the personal income-tax rate was lifted from 31 to 40 percent, while the cap-gains tax was reduced from 28 to 20 percent, making for a 20 percentage point tax advantage for cap-gains over regular income. Flashing forward, the current Bush administration lowered the income-tax rate to 35 percent and the cap-gains rate to 15 percent, preserving that 20 percent differential. Hmm . . . Is Rubin saying the cap-gains tax advantage was good for the Clinton boom, but not the Bush boom? Truth is, that differential provides a strong incentive for entrepreneurial risk taking and higher-risk, cutting-edge investment — both of which lend real torque to the economy. Another unfortunate irony is that while Democrats think they’re striking out at the rich, they’re actually jeopardizing the retirement portfolios of millions of middle-income Americans. Firemen, police officers, and teachers, to name a few, are all represented by the big state and city pension funds. And these funds are heavily invested in the hedge and private-equity funds that the Democratic tax machine is targeting. Is this fact lost on the Democrats? And don’t they realize that two out of every three voters in recent elections owned stocks — either directly or indirectly? Are they attempting to commit political suicide? If the Democrats get their way, job creation will be adversely affected, too. Clearly, you can’t create new jobs in the private sector unless there’s a new or expanding business to create those jobs. And since new and expanding businesses require capital for investment funding, if you tax that capital more, you get less investment and fewer jobs. In short, you can’t have capitalism without capital. The process works for “rich people” and the middle class. Whenever Democrats wage war against the rich, the middle class becomes the collateral damage. This may be the law of unintended consequences, but it is something this Congress fails to understand.

Cliff Swatner is single, 33, and owns a condominium in New York City worth $250,000.His income last year ex? Explain some disadvantages of Cliff's current investment approach. Construct a portfolio for Cliff, limiting your selections to mutual funds (assume that he sells his current stock and bond holdings). Make sure your plan indicates specific dollar amounts for each portfolio component. Make sure your plan also explains your selections for each portfolio component. Explain how Cliff should periodically rebalance his portfolio, indicating how frequently rebalancing should be done.

Tax issues of covered call writing in large portfolio? I'd like to sell four-to-six month Far-OTM covered calls on ~50 stocks; I'd also sell new 4-6 month calls whenever the prior calls expire. I'll have to make about 5-7 c.call transactions per month. Since I have a full-time job, are there any tax issues I should be worried about? Can this volume of covered call option sales (upto about 60 sales orders per year for total 100-150 contracts) make me at risk of becoming an "active" trader and having the premiums taxed as income instead of capital gains? And if the premiums do get taxed as income, could that then cause any sales of the underlying equities to be taxed as income as well, or would I be able to maintain capital gains treatment on the underlying stocks? Each year I make about 40-50 stock buy orders about perhaps about 20 sell orders so I'm probably doing about a 30% yearly asset turnover. The options proceeds would probably be under $12k per year in a $250k portfolio.

Suppose you owned a portfolio consisting of $250,000 worth of long-term U.S. government bonds.? Suppose you owned a portfolio consisting of $250,000 worth of long-term U.S. government bonds. a. Would your portfolio be riskless? b. Now suppose you hold a portfolio consisting of $250,000 worth of 30-day Treasury bills. Every 30 days your bills mature, and you reinvest the principal ($250,000) in a new bach of bills. Assume that you live on the investment income from your portfolio and that you want to maintain a constant standard of living. Is your portfolio truly riskless? c. Can you think of any asset that would be completely riskless? Could someone develop such an asset.

U.S. subprime mortgage affect on fixed income securities? Assuming that now is the end of Aug. 2007. You are the manager of a pension fund that invests about 70% of its asset in high-grade long term fixed income securities, 20% in blue-chip stocks, and 10% in money market instruments. Please explain the effect of the current market turmoil on your portfolio.

bond diversity without income? I'm looking for an investment that provides reasonable long term gains with bond-type diversity over equities but pays off primarily in long term capital gains and/or deferred dividends rather than income. I don't need current income of any type and would like to grow my principle and ultimately be taxed as long term capital gains or qualified dividends BUT I believe in diversifying my portfolio. My time horizon before needing any liquidity is 10 years and I could invest up to $250K in this part of my portfolio.

What is best book to purchase about how to do your own investing in today's global market? We are retired with no debt and no expectation of inheritance. Fortunately, we can live on our retirement income. We already have most of our portfolio with Vanguard and Fibelity, two investment companies that charge low fees. I feel a need to better understand the large amount of data and graphs that are available, but not sure what to focus on first and how to combine all the data and graphs together to make a decision that is best for us. I also like following world events and read on history, and know information in these areas are also important, but not sure how to integrate into our investment strategy.

Does the number of different stocks held affect CRA tax status (capital gain versus income)? Assuming an investor has a significant portfolio (>$250K), and buys and sells securities from time to time (average holding period is over a year) and has a relatively low yearly turnover (under 25%), does it matter, for income tax purposes (in terms of whether he would be eligible for 50% taxable capital gains treatment , or whether he may be flagged for 100% taxable business income treatment on gains), how he or she allocates the portfolio into a number of assets. Does the ability to claim capital gains treatment change if one decides to split the overall portfolio into 10, 50, or 100 or more different securities. I believe as long as each security was purchased with the intended purpose of deriving long-term benefits (ie. dividends), it should be eligible as capital treatment even if he holds 100 different securities. Furthermore, if the investor is still earning employment income heshould be able to continually add to the portfolio (ie. 5 buys/mo.) w/o triggering trader status.

Income tax question about stocks? Hi! I am new to the stock market. I invested in a few stocks and got a total of 9 dollars and change for the year 2008 in dividends. I have only bought stock, I haven't sold anything yet and probably won't for a while. My question is is that when I go to have my taxes done what information do I need to bring with me regarding my portfolio? Thank You everybody for your answers

Construct a portfolio for Cliff, limiting your selections to mutual funds (assume that he sells his current st Cliff Swatner is single, 33, and owns a condominium in New York City worth $250,000. Cliff is an attorney and doing well financially. His income last year exceeded $90,000, and he has sufficient liquid assets to supplement his condominium and other tangible assets. Several years ago, Cliff began investing in stocks and bonds. He made his selections on the basis of articles he read describing good investment opportunities. Some have worked well for Cliff, but others have not. Cliff has never taken the time to evaluate his portfolio performance, but he feels it isn't very good. Cliff currently has about $90,000 invested. He has been dating a woman lately and hopes to marry her in three years, at which time he will need $20,000 for marriage expenses and a honeymoon. Cliff's only other objective is to accumulate funds for retirement, but he does not have a specific dollar target for this goal. Cliff feels that he has a moderate risk-tolerance level.i just need help on how to do this.

Finance question - bond portfolio? A $100,000 bond portfolio generates exactly $9000 per year in income. Another $100,000 portfolio currently yields $7000 per year in income, but this amount is expected to grow at 4% annually. In about how many years will the two portfolios yield equal amounts?

Shall I leave my clients for another job that offer a more stable income?? I am torn...? I am currently on commission and earn little income. An opportunity came up with a more stable income...only that I will not be able to bring my clients (I love my clients and feel bad leaving them hanging). I believe in a couple of years when I build up my portfolio, I will make a lot more than what is offered now but income now vs income in the future (uncertain)......I am torn