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Journal

  • Rumbles Across the Pacific

    Thu, 23 May 2013 19:35:24 ET

    Is the world listening to Japan? Not very closely, it seems -- at least not yet. On the heels of today's screaming 7% plunge in Tokyo's Nikkei index, U.S. stocks initially fell hard, but then recouped most of their losses by the session's close. More »

  • Acute Discomfort

    Tue, 21 May 2013 18:53:23 ET

    Another day, another new all-time closing high for the headline U.S. stock indexes. So what else is new? Ben Bernanke's strategy is clearly 'working.' The Federal Reserve chief is creating so much discomfort among holders of low-yielding cash that, more and more, they feel compelled to buy equities. More »

  • Meet My Friend Spike

    Thu, 16 May 2013 19:43:40 ET

    Stocks took a brief respite today from their torrid advance, with the Dow closing down 42 points. It's becoming increasingly apparent, though, that we're in the midst of a fairly unusual, but not unheard-of, market phenomenon, which I call The Spike. More »

Latest Issue

  • June 2013 Issue

    Stock prices are already sky-high, but they may well head even higher before the year is out. What's a prudent investor to do? Wall Street's pitchmen (and their acolytes in the media) are urging you to jump in and buy, regardless of price. However, you and I know that overpaying can lead to disastrous losses. There must be a better way—and there is!

    In this month's visit, I'll show you the wiser path. By following three basic principles, you can not only capture a higher return on your money but also greatly reduce your anxiety over day-to-day market news. And with all the focus lately on the dizzying ascent of the Dow, many investors are overlooking the bargains still available abroad. I'll introduce you to three of my favorite opportunities—including an exchange-traded fund that I figure will outperform the blue chip U.S. stock indexes by at least a 2:1 margin over the next five years. Later, I'll bring you my regular semiannual update on one of our most popular features here at Profitable Investing, our Incredible Dividend Machine. If you're out to beat Ben Bernanke's zero interest rates on bank CDs and money market funds, you've come to the right place! First, though, let's find out why disciplined investing is more important than ever in today's levitating stock market—and how you can apply a few simple rules to fatten your profits and, simultaneously, curb your risk. More »

Calendar

Ask Richard

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 »

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