No chance they touch that deduction.

I wish but it seems highly unlikely.

Unlikely, but in any case it was a joke.

2 year WSJ$ index showing a clearly defined cup and handle, poised for the break out phase, no surprise in the midst of a rate hike cycle. If the conclusion is commodities suffer as a result of a strong dollar then we rotate to div stocks/staples?

Anyone have thoughts on muni bonds and GOP health care reform? Munis took a big hit recently and Im skeptical that tax & health care reform will make large strides in the near term.

After checking my Vanguard retirement account, I noticed that one of the products they offer was a 1 month CD that yields 1%.

Couldn't someone just purchase one of these products each month and collect a compounding yield of 12% a year, risk free?

Why would anyone bother investing in 1 year treasuries that yield 1%-2%, when they could simply purchase a short-term bond with the exact same yield? Investing in a one month CD should produce a near identical amount of profit in a fraction of the time? No?

Being able to collect a risk-free yield of 12% a year would beat the S & P index, so I know I must be missing something here.

Can someone point out the folly of my observation....

That's annual yield. So 1%/12 is the real yield.

The energy sector has, and is continuing, to tank hard in the markets. BP needs to provide a high yield in order to prevent investors from moving their money elsewhere so their stock price doesn't collapse.

You can sell a US T-bill at any time free of penalty. Probably get one more hike this year in Nov.

Energy faces major headwinds with currency and supply. I own a little CVX (purchased Q4 2015) but Im not adding more.

That is the question, can BP continue to pay the same dividend in the face of declining revenue from low oil prices and lawsuit payouts? I don't pretend to know, but if you would be ok with owning BP if they cut the dividend in half then it could be a really good contrarian play. You would certainly be buying on the lower end of expectations.

If they cut the dividend in half, yield will probably stay same...

Only for new buyers.

Any tips on how to choose an HSA provider?

Low fees and investment options (if you will accumulate money in the account).

I use hsabank. They are pretty low cost and allow investing in an Ameritrade account.

Any specific books you guys recommend for a total noob that would like to understand how bonds work and how to invest in them efficiently? Thanks in advance for your input !


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My Australian friend has been living and working in America for years, including contributing to a 401k. He recently decided to move back to Australia, and needs to figure out what to do with his 401k. Obviously the standard response is to ask a tax accountant, but curious if there are any thoughts out there on this.

I can't imagine that he can roll a 401k over into a foreign vehicle, so I think his two options are to keep the money here until retirement (not preferred) or to take an early withdrawal.
My assumption with the early withdrawal is that he should wait until next year, when he has no US income, to take the early withdrawal--he'll still have to pay an early withdrawal penalty, but that would reduce the taxes he owes since it would be his only "income".

Thoughts?

I goggled searched and found this. Not super helpful, but brought up points I didn't know, like it depends on the tax treaty between US and Australia.

http://www.taxmatrix.com.au/pdfs/App...0question).pdf

I don't know any, but you can ask questions here or better, open a separate thread.

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I've been consolidating my taxable accounts, and instead of using VTI for my US exposure I'm thinking of essentially emulating wealthfront's direct indexing - I'll buy all 278 stocks in the CRSP Mega Cap index, and then VO plus VB (mid- and small-cap ETFs, respectively) to round it out. 70% in the mega cap stocks, and 15% each in VO and VB (based on the chart here: https://advisors.vanguard.com/VGApp/...ty/ussizestyle). Is this a terrible idea?

The main benefit would be having many more opportunities to tax-loss harvest, and save a little bit on expenses (assuming 500k invested for 30 years, I would pay $6k in VTI versus $278 upfront to buy the individual stocks and $1,350 each for VO and VB). The big downside of course would be the hassle of buying the 278 stocks, and handling the accounting for spin-offs, tax-loss harvesting, etc. Also there would be some tracking error as stocks move in or out of the mega cap index over the years, but I'm not too worried about that.

Unless you are rolling in dough and can purchase enough issues to properly diversify, it is best to just buy a fund.

If you are rolling in enough dough to purchase enough issues to properly diversify, you should probably still just buy a fund and get a more enjoyable hobby.

What do you mean by buying a fund? As I sais I'm completely new to finance/investing. As I understood bonds do not offer the highest yield but are safer and require less market monitoring. It is absolutely possible that I don't grasp the complexity of investing in bonds tho. Thanks for any input that you are willing add.

I don't have any real input, but if you elect to do this, I'd love to hear how it goes. I have looked at their serviced and it is tempting, other than the fact I already have substantial capital gains built up on my taxable account holdings (ETF's) and am not willing to eat the gains to move it to something like this.

The effort required to report all of the transactions on taxes is a big deterrent too, but that's just me being lazy. I'm also reluctant to pay any advisory fees after moving away from that a few years ago.

Sounds like you need more info than you can get in this thread. Here are some general resources to get started. A
https://www.amazon.com/Bond-Investin...ng+for+dummies

https://www.amazon.com/Investing-All...ng+for+dummies

Fund = mutual fund or ETF.

Does anyone have information or a resource to find EPS averages by sector?

I would like to see a list of stocks that are categorized by industry/sector and what EPS average is between those companies.

By sector I mean examples such as: oil refineries, gold mining, and car manufacturer. I know I can do this on my own, but it would take an eternity to find all stocks related to "dining" or something. So I shall ask before I do.

Thanks.

Done. I bought VO and VB, plus a total of 268 stocks from the mega cap index today on IB (all MOC orders, to avoid paying the bid/ask spread). It only cost a total of $99.25 in commissions. I left out TSLA, KMB, and PNC because they suck, and took the cheapest of the share classes for the few companies that have multiple classes (the weirdest ones are FOX voting shares selling at a discount to the non-voting shares, and VIA voting shares selling at a large 13% premium over non-voting shares - lol efficient markets).

I don't think taxes will be too bad when I sell, but time will tell I guess. I've never had any issues with IB screwing up my cost basis, but I imported all the trades into Excel so I can track everything myself to double check just in case.