December 5, 2013
Investors find themselves in a jolly mood as we head into the 2013 holiday home stretch. Folks have every reason to feel merry, too. Domestic stocks have soared this year, especially the more speculative names. The longer the roaring advance continues, however, the more questions it raises. Are we in another bubble?
In the December 2013 issue, I take an in-depth look at these issues. Here, I'll give you an preview of how to start taking defensive measures.More »
November 14, 2013
Washington has only stuck a band-aid on the problem of financing medical care. However, if I can save a few nickels in 2014 by using the exchanges, I'll do it, and I advise you to do the same.
However, the signup process and available plans are less than straightforward. Here's a guide to the available offerings.More »
September 26, 2013
Well, Fed chairman Ben Bernanke surprised us all in September by deciding to hold off on his tapering plan. Funny money will keep propping up the markets, though traders have been slowly getting used to the idea of weaning themselves off stimulus for months now.
Now that the dust has settled, three bullish trends for the end of the year and the beginning of 2014 are becoming apparent. There's money to be made from this irresponsible Fed decision, if you understand how the markets are likely to react.More »
Tue, 10 Dec 2013 19:24:26 ET
Marvel of marvels! Just last Friday, the Labor Department reported a stronger than expected monthly jobs tally for November, and a drop in the unemployment rate to 7%. Poison for bonds? Not exactly. More »
Thu, 05 Dec 2013 20:25:18 ET
All right, here we go again. The Treasury long bond is testing its price lows from last August and September, and Wall Street is bracing for more trouble in the wake of Friday's monthly jobs report. Even the normally unflappable stock market took fright today at the specter of 'Fed tapering,' with the S&P 500 index closing down for a fifth day in a row–its longest losing streak since September. More »
Tue, 03 Dec 2013 18:51:14 ET
Pity the poor news reporters who have to come up with a 'reason' every day for why the stock market went up or down. Today's 94-point dip in the Dow, according to some accounts, stemmed from a decision by a federal judge to let the city of Detroit file for bankruptcy. More »
Investors find themselves in a jolly mood as we head into the 2013
holiday home stretch. Folks have every reason to feel merry, too.
Domestic stocks have soared this year, especially the more speculative
names. The longer the roaring advance continues, however, the more
questions it raises. Are we in another bubble? If so, when should you start
taking defensive measures, and how?
In this month's visit, I'll grab these issues by the horns. While it's clear that today's stock market hasn't begun to approach the manic extremes of the late 1990s, certain signposts point to heightened risk in the months ahead. To keep your money growing safely, I've got four tips you'll want to follow. For the "growth and income" slice of your portfolio, I'll spotlight two high-yielding blue chips with the potential to double your wealth in the next five years (or less). Gotta have even more income? I'll update you on our Incredible Dividend Machine, a simple, low-maintenance program that lets you pocket a plump dividend check every month of the year. Later, we'll take a fresh look at the case for emerging markets—stocks as well as bonds. First, though, let's find out why today's lofty stock prices hold dangers for unwary revelers—and how you can boost your profits in the months ahead without taking a speck of unnecessary risk. More »
If Roth IRAs are tax-free, how come I can't hold master limited partnerships (MLPs) in them?
Because of a quirk in the tax law, Uncle Sam may deem part of your MLP earnings to be Unrelated Business Taxable Income. As stated in IRS publication 598 under 'Organizations Subject to the Tax,' if you hold an MLP inside a retirement account, you'll owe income tax on any UBTI credited to you above $1,000 a year. IRAs including Roth IRAs are subject to this tax. So you should only hold individual MLPs in a taxable account. And because individual MLPs issue a complex form called a K-1 at tax time instead of a 1099, you may also need a professional tax preparer to help you place all the numbers in the right slots on your return. Of course, there's a way around both of these complications. More »
Richard E. Band is the newsletter world's #1 authority on investing for low-risk growth. His flagship Total Return Portfolio has quintupled in value since its inception in 1990, while taking far less risk than the popular stock market index funds. More »
Richard Band is a genius. I consider myself his most-satisfied reader. He helped me double my money in eight months. Profitable Investing has helped me be able to relax more and enjoy some of the beautiful things I've been able to accumulate. For this, there is really no way I can thank him enough.
–Larry Kravitsky, NY