Birchtree's Account Talk

[Birchtree]

You cost basis would only increase if you reinvested the dividends buying more shares. You will still be responsible for the tax either way - but I'd prefer to let my dividends act like DCA. Everything I own is essentially on auto-pilot.

 

[poolman]

Even if they get it fixed soon with hurricane season starting up the problems are only going to get worse.

Your thinking the right way nasa, Your ahead of the game.

 

[Birchtree]

Think about it like this: all those gravel roads will get oiled for free. That keeps the dust clouds down in the rural areas.

 

[alevin]

You cost basis would only increase if you reinvested the dividends buying more shares. You will still be responsible for the tax either way - but I'd prefer to let my dividends act like DCA. Everything I own is essentially on auto-pilot.

Thanks Birch. I paid taxes on last years divvies, and cost basis shown in the 1099 stayed at original purchase price, but OptX account data is currently showing cost-basis as having gone up, even tho still taking the divvies in cash (I didn't want to keep buying higher-priced shares last year.) So I needed to clear that up in my own mind before talk to Optx people about my concerns.

 

[Warrenlm]

Think about it like this: all those gravel roads will get oiled for free. That keeps the dust clouds down in the rural areas.

And Limbaugh can keep his home lights on at night because the turtles won't use his beach.

 

[Birchtree]

"Lowry's Research Corp reported that for the four days through Wednesday, fewer than 10% of all NYSE stocks were below their 10-day averages - a condition that has never occurred outside of a bear market in the past 75 years."

http://www.marketoracle.co.uk/Article19947.html

 

[Birchtree]

http://pragcap.com/whitney-tilson-this-is-not-2008

 

[Steadygain]

Hey Birch - I thought about you over the weekend.

Those at the Top of the Big Banks are calling this 'The New World Order' -- and they have to know what they're talking about.

I know you're wanting the overwhelming bulk of your wealth to go to the future grandchildren and let the distant relatives enjoy a greater peace of mind. So that's why I throwing this out.

2010 is the year for those with 'money' to go Roth IRA.

All other years was an income cap of $100 K in the conversion. This year there is NO limit.

Almost every other Retirement Plan or IRA forces you to take distributions at 70.5 years of age.

No minimum distribution with a Roth.
Accounts grow larger for heirs.

The grandkids will need to take minimum distrutions on the Roth but it continues to grow tax free and is distrubuted income tax free.

Birch, with the previous administration everyone 'in the know' realized the next administration (current one) would have at least a 10 Trillion Debt to deal with -- and all of them were confident Taxes would be HUGE.

Nations around the world are being forced to 'pay up' and this game of pretending we won't start paying way more in taxes over the years to come is about to end. The hardest times are coming and so I'm letting you know an opportunity to 'beat the system'.

Oh -- BTW -- forget the day to day --- think 'Big Picture' and the BULL is alive and well.

 

[Birchtree]

Some great reading for those with time available.

http://dshort.com/

 

[Birchtree]

Steady,

The daughter and I have been in discussion regarding her new 401K - leaning toward the Roth 401K. She will decide on the amount of money she will contribute. Her company provides a 3% match plus bonus pay and profit sharing. They are giving her $71/day for meals and she has been eating lean cuisine meals. She is also getting money for her Army Reserve time one weekend a month. So I say put in 20% of salary and get the company match and let things roll. Now we have to decide on the sectors to invest towards - will she listen to Dad. She says she doesn't have a clue. I'm thinking SPX index and American Europacific fund for the next five years anyway. She will contribute every two weeks which is perfect for dollar cost averaging and may at some point shift her TSP account to the new 401K.

 

[Steadygain]

I would say Dad knows BEST for sure. It sounds like an excellent plan.

I'm personally leaning more towards emerging Markets in sectors outside of the US and Europe -- over the next 5 years -- but sticking with economies that have long standing strength and durability is always a good move.

I feel for her Birch. You know she's going to find a Huge World that has mostly been unknown -- especially with this Gulf mess. The Power of the Oil Companies will likely be a lot harder to hide and the more everyone knows is all the more going to cause a sense of 'alarm'. I wouldn't doubt the Oil Companies take a fairly big hit and governments clamp down way more as 'concerns of the people' force Politicians to do more for the environment. For now we're stuck so hopefully she can just look at her specific job and ingore the rest.

$71 a day -- WOW !!! -- Birch, I have a hard time spending $20 a week. Sometimes force myself to buy my lunch or breakfast just to spend some money.

This past weekend I felt pretty hopeless when I saw how much Social Security will be paying me. It's like I told my daughter, 'I have a hard enough time spending $20 a week -- now Social Security is telling me we're giving you $500 a week'. I'm like how in the world am I going to spend all that money and it doesn't matter cause they just keep sending it. She said 'Easy, just spend it on others'. So I think I'll do these random things like you Birch. Go out for a nice meal and pick someone (like you did) and just pay for their meal.

 

[Birchtree]

"As I often emphasize, the decending wedge is bullish and is very reliable in that it normally resolves to the upside, so naturally I am expecting an upside breakout in this case."

http://financialsense.com/Market/wrapup.htm

 

[presskh]

"As I often emphasize, the decending wedge is bullish and is very reliable in that it normally resolves to the upside, so naturally I am expecting an upside breakout in this case."

http://financialsense.com/Market/wrapup.htm

You forgot the rest of the paragraph:

" I should also emphasize that the pattern is not "bet-the-farm" reliable. Bottom Line: The market is still medium-term oversold, but it continues to show weakness instead of rebounding. This really concerns me. "

 

[Birchtree]

http://www.bespokeinvest.com/thinkbig/2010/6/1/sp-500-back-to-extreme-oversold-levels-html

 

[Birchtree]

http://www.bespokeinvest.com/thinkbig/2010/6/1/sp-500-back-to-extreme-oversold-levels.html

 

[crws]

Birch-
BP- OUCH! :worried:
Hope you waited to buy.

 

[Birchtree]

"Now let's see if these stocks markets will indeed embark on a torrent of buying and strong rallies, or will they fall to new bear market lows by the end of the year. Jupiter and Uranus in Aries could correspond to either, but I wouldn't give up on the idea of an upward explosion yet."

http://www.mmacycles.com

 

[Birchtree]

A Dow gain of 234 would take back the last two trading days - let's do it.

 

[Birchtree]

"The bullish contrarian in the crowd could also argue that the small investor's low level of allocation is a very bullish sign as equity allocation is still well shy of its past levels seen at market peaks."

http://pragcap.com/are-small-investors-turning-against-stocks

 

[Birchtree]

Tomorrow we should blast up through the Dow 200 day currently at 10,282. We should also take out the resistance range of 10258-10352 and provide further upside.