The Tax Questions Blog

Posts Tagged ‘investing’

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Question: How do I invest in short term secure Euro investments from the US?

I want to purchase a short-term (5 month or less) low risk instrument where I take on the currency risk/gain between the US Dollar and Euro or British Pound Sterling. I can do this in a Roth or taxable account. Is there such a thing as money market type accounts that trade in the Euro? Are there short term notes or CD's available from foreign banks? I think the US dollar will weaken vs the Euro over the next 2 years though I don't want to go out past this US election. What do I do?

Answer: buy euros.

Uncle Sam And Investing In Currency ETPs

Choosing the right currency ETF can come down to the tax man. The growing number of currency-focused exchange-traded products has opened up the world of currencies to individual investors.

Aaron Russo - America Freedom to Fascism |MULTI SUB|

Question: Where is the best place to put Roth IRA money with objective of preserving capital?

Regarding a Roth IRA investment; does buying a Tax Exempt Bond make sense over a Taxable Bond Fund? At this time, which is better; Short, Long, or Intermediate Term? Do you have any specific recommendations within the Vanguard family of funds? Right now everything is in a money market fund. Thanks in advance.

Answer: The obvious but perhaps incorrect answer is a money market fund. It is obvious because generally speaking the fund is liquid, but there is a chance that the some of the assets of the fund might fail. Another obvious answer is CDs and T-bills. Both are guaranteed by the U S government, but there is a big catch. Inflation and the value of the dollar. As you have been informed munis make zero sense in a tax free Roth IRA.

To preserve your capital, you actually have to take some risks. That is just life, I guess. Inflation is running at about 5% annually, maybe even more. The government lies about the inflation rate so do not believe their figures. In addition to that the U S dollar is loosing value at about 5% annually, so investing in T-bills or CDs are eroding your capital at about a 5% annual clip.

Vanguard does have a very good mutual fund that might be a good vehicle for presrving your capital. The Global Equity Fund. VHGEX. Currently only 35% of its investments are in U S dollar securities so you are somewhat protected against a drop in the value of the dollar and a 10 year annual return of better than 12%. However, it is never a wise strategy to count on just one investment to safeguard your assets or to grow your assets.

My thought is that one can not go too wrong investing in energy investments and Vanguard has a find one. VGENX. It has a 10 year annual return of about 16%. 44% of this fund is in non-dollar investments.

As the dollar sinks in value, that is actually good news for some U S companies. Those being the mega-internationals that considerable business overseas such as Boeing and Catapiller and Microsoft and IBM. So an investment in a fund that has a large holding of these type companies also might prove worthwhile. VAAPX is such a fund. Also VLACX.

Investing Strategies for the High Net-Worth Investor: Maximize Returns on Taxable Portfolios $6.53 A proven model for achieving high returns on taxable investments Investing Strategies for the High Net-Worth Investor showcases an investing approach that helps readers understand the unique challenges and opportunities that wealthy families face when building a diversified portfolio for multiple generations. Renowned private wealth manager Niall J. Gannon offers a framework for investing in tax f...

The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk $14.31 “Bernstein has become a guru to a peculiarly ’90s group: well-educated, Internet-powered people intent on investing well—and with minimal ‘help’ from professional Wall Street.”--Robert Barker, BusinessWeek William Bernstein is one of today’s most unlikely financial heroes. A practicing neurologist, he used his self-taught investment knowledge and research to build a popular investor...

The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between $8.97 A timeless approach to investing wisely over an investment lifetimeWith the recent market maelstrom as a background, this Wall Street Journal bestseller describes just how to plan a lifetime of investing, in good times and bad, discussing stocks and bonds as well as the relationship between risk and return.Filled with in-depth insights and practical advice, The Investor's Manifesto will help you u...

Saputo: Financial Results Fiscal 2011 Second Quarter, Ended September 30, 2010

MONTREAL, QUEBEC-- - We are presenting the results for the second quarter of fiscal 2011, which ended on September 30, 2010.

Missed Fortune Radio - An All Too Common Tale: Higher Taxes in Retirement

Question: Would yields would be higher or lower on taxable bonds?

Answer: Yields should be higher on taxable versus tax-free bonds.

The Bond Book, Third Edition: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More $19.12 Everything on Treasuries, munis, bond funds, and more! The bond buyer’s answer book—updated for the new economy “As in the first two editions, this third edition of The Bond Book continues to be the ideal reference for the individual investor. It has all the necessary details, well explained and illustrated without excessive mathematics. In addition to providing this essential content, it is...

The Fundamentals of Municipal Bonds, 5th Edition $31.35 Praise for the Classic Guide to the Bond Market"This is simply the most comprehensive, useful look-it-up book on municipal bonds I've ever read (said with all due respect to The ABC of Municipal Bonds my dad wrote in 1937 when I was nine). Read Fundamentals cover to cover. I'm keeping mine in my briefcase, under my arm, at my fingertips. No accountant, financial advisor, attorney, new bond salesma...

The Bond Book: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More $4.31 In today’s volatile financial environment, growing numbers of investors are looking to flee the stock market in search of safer ground. While the bond market has often been a “safe haven,” confusing new bonds and bond funds make it increasingly difficult for unfamiliar investors to choose the correct fixed income investments. The Bond Book provides investors with the information and tools th...

Fitch Rates Eagle Pass, Texas GO Bonds 'A'; Outlook Stable

AUSTIN, Texas--(BUSINESS WIRE)--Fitch Ratings has assigned an 'A' rating to Eagle Pass, Texas general obligation (GO) bonds as follows: --$6.895 million GO tax refunding bonds, series 2010. The bonds will be sold via negotiation on Oct. 13, 2010. Proceeds will be used to refund series 2007 combination tax and limited pledge revenue certificates of obligation (COs). In addition, Fitch affirms the ...

Wealth Enhancement & Behavioral Finance, Intelligent Indexing

Question: What is the best way to invest in bonds in a taxable account?

My goal is long-term growth because I have a stable and highly paid job. I want to use bonds to diversify my stock portfolio. Quality (low default rate), low cost, and tax efficiency are the most important to me.

I'm considering Vanguard or Fidelity bond index funds for their low cost and diversification.

I'm also considering IBond (US Saving Bond Series I at TreasuryDirect.gov) for its tax deferral, tax-exemption when redeemed for my education, and guaranteed principal plus interests at maturity.

How do you invest in bonds in your taxable accounts? Why?

Answer: Tax-free municipal bonds. There are some Vanguard funds that have these.

Morningstar's Guide to Mutual Funds: 5-Star Strategies for Success $0.32 Praise for Morningstar Guide to Mutual Funds"Picking actively managed mutual funds is no mean challenge. And as the recent era underscores, past performance is of little help. The Morningstar Guide to Mutual Funds helps cut through the fog with a solid volume of constructive advice. The central message-'truly diversify, keep it simple, focus on costs, and stick with it'-is not only timeless, it is...

Filing tax returns? Keep this in mind!

Filing tax returns is an annual mandate that tax payers have to comply with, the last date for which is in sight: July 31, 2010.

Missed Fortune Radio - Baby Boomer Myth-Conceptions

Question: Are funds distributed under surrogate's court procedure act.sec.1310 taxable?

My spouse died last year and I received his back pay under
the surrogate court act. Do I have to claim this as income.
I did not receive a W2 or 1099 HELP

Answer: If it is back pay it should have been taxed. Look at the pay-stub and it should show any taxed with held including SS/Med and state.

If you didn't receive the W2 and taxes were with held you should be getting it soon. All companies were required to have ALL W2 in the mail no later than 1/31/2008

If you do not receive the W2 by 2/14/008 call the IRS at 1-800-829-1040 on 2/15/2008 and choose the appropriate option for not receiving the W2.

The Wall Street Journal Guide to Understanding Money and Investing, Third Edition (Wall Street Journal Guide to Understanding Money & Investing) $15.95 THE WALL STREET JOURNAL GUIDE TO MONEY & INVESTING has been substantially revised and updated to reflect highly popular new investment products, new rules on dividends, expanded coverage of mutual fund operations in light of recent disclosures, and significant changes in the capital markets, all of which are essential reading for beginning as well as seasoned investors. New topics covered in this ...

Buy High, Sell Higher: Why Buy-and-Hold Is Dead And Other Investing Lessons from CNBC's The Liquidator $8.22 Whether you're a professional investor or just want to trade like one, Buy High, Sell Higher will show you how to pick winners, maximize gains and minimize losses...In this book, you'll learn how a stock's price is just the beginning of the story, and that other indicators like moving averages and volume can help you to spot stocks that have momentum. You'll also learn how to determine the optimal...

Morningstar Funds 500: 2008 $17.99 In this completely new reference guide, you’ll find the best information and independent opinion available on 500 of the largest and most popular mutual funds—the very funds you likely own. Morningstar’s Fund Reports are the industry standard and are trusted by financial professionals nationwide. And now, you get this exclusive and valuable guidance all year long, with access to fifty free f...

A preview of the year ahead

Philip La Greca examines the possible impact that the outcomes of the forthcoming government reviews will have on superannuation and, in particular, SMSFs.