Financial question...
 

On Thu, 21 Aug 2008 01:12:26 GMT, Short Wave Sportfishing
wrote:

On Wed, 20 Aug 2008 20:27:53 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Thanks again, Tom.

Anytime.

My bill is in the mail - cash will be fine. :)

Which country?

Financial question...
 

On Wed, 20 Aug 2008 20:48:11 -0400, Wayne.B
wrote:

On Wed, 20 Aug 2008 17:28:03 -0400, John H.
salmonremovebait@gmaildotcom wrote:

I've never understood the advice to pay interest for the tax break. Where
is the break in giving away $1 to get 30 cents back? Seems like 70 cents
got lost there somewhere.

I can understand holding debt while building a savings account, but once
the cushion exists, I can't see the reason for it.

It's all a business decision. The interest you pay on a loan is the
cost of renting money. For certain types of loans like a home
mortgage or a broker's margin loan, you get to deduct the interest
payments. How much that deduction is worth depends on your tax
situation but the net effect is to reduce the effective cost of your
money "rental".

The next part of the equation is how much you can reasonably expect to
earn with the rented money. That depends on your skill as an investor
and what happens to the economy going forward. If you can reliably
make an annual return from your investments greater than youur
effective (after tax) cost of borrowing, then you come out ahead. The
downside is that if your investments don't work out you still owe the
money that you borrowed. That's the magic world of leverage,
wonderful on the way up, miserable going the other way.

Well yeah, but what do you see in the economy going forward?

Financial question...
 

"John H." salmonremovebait@gmaildotcom wrote in message
...
Would it be a wise move to take out a loan on your home to buy stocks?

Would it be a wise move to sell stocks to pay off a loan on your home?
--
** Good Day! **

John H

No. The return on stocks is not enough greater overall than the interest
rates at the present time. If you are going to risk capitol, at least get a
good rate of return.

Financial question...
 

On Wed, 20 Aug 2008 21:49:52 -0400, John H.
salmonremovebait@gmaildotcom wrote:

On Thu, 21 Aug 2008 01:12:26 GMT, Short Wave Sportfishing
wrote:

On Wed, 20 Aug 2008 20:27:53 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Thanks again, Tom.

Anytime.

My bill is in the mail - cash will be fine. :)

Which country?

São Tomé and Príncipe dobra

Financial question...
 

On Wed, 20 Aug 2008 21:50:35 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Well yeah, but what do you see in the economy going forward?

No one knows for sure. Long term it always recovers but the timing is
uncertain as is the sector rotation. The keys to investment success
are not really a secret:

1. Good solid companies that have been around a while and pay
dividends.

2. A widely diversified portfolio.

3. A track record of competent management and building shareholder
value.

4. Good value vs assets and future income stream.

Trying to time market tops and bottoms is a risky game. Picking good
companies at a good value is easier. I continue to like the big
integrated oils over the long term as well as some of the exploration
and drilling companies. None of them will double your money in 6
months but you really shouldn't be trying to do that.

Financial question...
 

On Wed, 20 Aug 2008 22:32:21 -0400, Wayne.B
wrote:

On Wed, 20 Aug 2008 21:50:35 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Well yeah, but what do you see in the economy going forward?

No one knows for sure. Long term it always recovers but the timing is
uncertain as is the sector rotation. The keys to investment success
are not really a secret:

1. Good solid companies that have been around a while and pay
dividends.

IBM.

2. A widely diversified portfolio.

IBM.

3. A track record of competent management and building shareholder
value.

IBM.

4. Good value vs assets and future income stream.

IBM.

Trying to time market tops and bottoms is a risky game. Picking good
companies at a good value is easier. I continue to like the big
integrated oils over the long term as well as some of the exploration
and drilling companies. None of them will double your money in 6
months but you really shouldn't be trying to do that.

IBM.

~~ snerk ~~

Financial question...
 

"Wayne.B" wrote in message
...
On Wed, 20 Aug 2008 21:50:35 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Well yeah, but what do you see in the economy going forward?

No one knows for sure. Long term it always recovers but the timing is
uncertain as is the sector rotation. The keys to investment success
are not really a secret:

1. Good solid companies that have been around a while and pay
dividends.

2. A widely diversified portfolio.

3. A track record of competent management and building shareholder
value.

4. Good value vs assets and future income stream.

Trying to time market tops and bottoms is a risky game. Picking good
companies at a good value is easier. I continue to like the big
integrated oils over the long term as well as some of the exploration
and drilling companies. None of them will double your money in 6
months but you really shouldn't be trying to do that.



We never played in the stock market at all until about 8 years ago. At that
time we decided to take a small amount of money and try our hand. Not
knowing anything about it, we bought stock in about 6 technology based
companies ... two that were highly speculative, high risk, and four that
were larger companies that although they had been around for a while, were
suffering from the telecom fiasco and the stock prices were at a low. I was
familiar with the companies and felt that the four still had promise in the
future, once they recovered.

The two high risk companies have long since gone belly up. But the other
four have recovered nicely, one in particular, and, even now in the current
slump, we have almost quadrupled our total, initial investment including the
losses associated with the two that went belly up.

Eisboch

Financial question...
 

"Don White" wrote in message
...

"D.Duck" wrote in message
...

"John H." salmonremovebait@gmaildotcom wrote in message
...
On Wed, 20 Aug 2008 16:26:27 -0500, Vic Smith
wrote:

On Wed, 20 Aug 2008 17:11:31 -0400, John H.
salmonremovebait@gmaildotcom wrote:



I'm not talking about taking money out of savings (CDs), but about
selling
stocks. I believe the interest earned on CDs is taxable in the year
earned,
not when the CD matures.

Yeah, but you have cap gains taxes on stock, no?
I' was talking IRA CD's, which are taxed as current year income.
Anyway, on the CD's, once you figure the tax hit and interest lost,
and figure the interest saved on the home note, there you are.
Easy.
With your situation, there's the potential of the stocks to increase
or decrease in value, and any known dividends. Future valuation
can't be determined.
One piece of advice I can give is "psychological."
If you sell the stocks, don't bother checking their performance
afterwards. It could hurt, or it could make you smile, but it doesn't
matter. Every day is a new day.

--Vic

If stocks rise more than 5 1/8% per year, then selling would be a bad
idea.
(Actually, since the tax on capital gains is less than the tax on earned
interest, the % could be a little less.) The CDs I have are currently
doing
better than the interest rate I'm paying, so they won't be used.

The decision is very dependant on what the future may hold for the stock
market.
--
** Good Day! **

John H

Don't bet your farm on the Market. It runs in cycles and historically
returns an *average* of about 10%/year. No one knows when the next
up-cycle will begin.

Not to worry though, according the Mayan calendar these problems will all
be a mute point in 2012. 8)

Dec 21 2012... and not only the myans came up with that time period.
The Chinese, a Sybol? in Greece etc.
We have four years and 4 months exactly.

Look on the upside. It would also be the end of rec.boats.

Financial question...
 

"JimH" wrote in message
...
On Aug 20, 9:12 pm, Short Wave Sportfishing
wrote:
On Wed, 20 Aug 2008 20:27:53 -0400, John H.

salmonremovebait@gmaildotcom wrote:
Thanks again, Tom.

Anytime.

My bill is in the mail - cash will be fine. :)

Make sure you get a receipt!


Talking about financial experts, don't you usually get a receipt of money
expended, not received?

Financial question...
 

"D.Duck" wrote in message
...

"Don White" wrote in message
...


Dec 21 2012... and not only the myans came up with that time period.
The Chinese, a Sybol? in Greece etc.
We have four years and 4 months exactly.



Look on the upside. It would also be the end of rec.boats.



The last post will be, "Ping, Harry .... tried to warn 'em. Regards,
Larry"


Eisboch