Dividends Are Sweet…Sweeter Than Interest
- Written by Marc Courtenay
- Wednesday, 06 December 2006
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At the end of each month I enjoy looking at the interest I have earned from my Fidelity Government Reserves Money Market Fund, currently with a yield of around 5%. Automatically reinvested back into more shares of the fund, the interest compounds and grows so satisfactorily. Then my bubble is slightly burst when I realize that I will be paying ordinary income taxes on this monthly payout. Depending upon your tax bracket and annual income that means we will be paying between 20 and 35% federal income taxes and in most states between 5 and 10% in income taxes. Thus the yield is now reduced by a sickening average of around 30%. This means that 5% yield now drops down to an after-tax rate of only 3.5%. The same reality hits our CDs, our bank accounts and even our bonds and our bond funds. Darn, it just isn’t fair, especially when there are no chances for capital gains and the buying power of the dollar is dropping each year!
Add a commentDo You Want To Own Gold Stocks or “A” Gold Stock?
- Written by Marc Courtenay
- Tuesday, 05 December 2006
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I was going over our personal stock positions this morning, and the number of winners and the amount of the gains is quite encouraging. It was less than 3 months ago that I started building positions in Yamana Gold (NYSE: AUY), Eldorado Gold (NYSE: EGO) and my all-time favorite gold producer, Goldcorp (NYSE:GG). It seems like a long time ago now and like all good buying opportunities, it was a scary process. I was buying these companies when the majority was selling.
Add a commentCollecting Rent from the Best of Tenants
- Written by Marc Courtenay
- Sunday, 26 November 2006
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Just recently, The Blackstone Group agreed to purchase Equity Office Properties (NYSE:EOP) in a buyout valued at a staggering $36 billion. It was the largest real-estate transaction in history, potentially the largest-ever private equity takeover. It is a sensational sign of confidence in commercial real estate. Owning commercial properties is not only a great source of tax-favored income, but it can be way to pile up some sumptuous capital gains.
Add a commentStocks to Be Thankful For and More
- Written by Marc Courtenay
- Wednesday, 22 November 2006
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Where's The Risk, Where's The Reward?
- Written by Marc Courtenay
- Wednesday, 15 November 2006
Ten years ago you could have purchased a gorgeous home on the upper east side of Santa Barbara, California for under $600,000. That's right, back in the fall of 1996 shortly after Bill Clinton was re-elected to his second term, we looked at a 3,000 square foot home with a swimming pool in a very fashionable neighborhood which was offered for $599,000. Today you couldn't touch it for under $2 million.
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