Comments on: Taxes Should Affect Your Stock Decisions

By: jim

jim — Sat, 14 Jan 2006 17:13:00 +0000

Big Mike – Yes it might be prudent… depending on your tax bracket and how you think it’ll perform, hence the chart. If you’re in the 28% tax bracket and you think it’ll fall more than 9.75% then you should sell… having hard numbers makes it an easier and less nebulous decision. Of course, who knows where a stock will go, right?

By: Big Mike

Big Mike — Sat, 14 Jan 2006 15:42:45 +0000

I generally agree that you shouldn’t let tax considerations prevent you from selling stuff that deserves to be sold.

On the other hand, if you’ve held on the something for 11 months it might be prudent to hold on for one more month.

By: Financial Rounds

Financial Rounds — Tue, 10 Jan 2006 14:52:50 +0000

This Week’s Carnival of Investing

I’m a day late, but This week’s Carnival of Investing is being hosted at FreeMoneyFinance. It’s arelatively new Carnival, and worth checking out. Here are some of the this week’s pieces I found interesting:

By: Free Money Finance

Free Money Finance — Mon, 09 Jan 2006 10:56:31 +0000

Carnival of Investing

Welcome to this week’s edition of the Carnival of Investing. As a summary of each piece, I’m listing each author’s reason for submitting the post to the carnival (for those that submitted one) and/or a bit of the post itself

By: Steve Mertz

Steve Mertz — Sat, 07 Jan 2006 19:28:07 +0000

My New Years resolution is to pay over $100,000 in taxes Seriously, I’ve had clients make some incredibly bad decisions by fearing to pay taxes-Good reminder! Steve

By: George

George — Fri, 06 Jan 2006 16:33:00 +0000

“You shouldn’t let the tax implications of your sale significantly affect your decision (if you think the reasons why you bought the shares no longer apply, then you should get out) but it should be playing a role in your decision-making process. Don’t be the one left holding the bag because you became greedy and didn’t want to pay the tax man.”

I learned this lesson the hard way during the dot com meltdown. I had a few stocks, including AOL, with some nice gains and I know things were going downhill for Internet stocks. However, I owned most of them for less than a year, plus my tax rate was much higher than normal that year, so I waited. Let me just tell you, I’ll never wait again.

The best thing to do is just use IRA, Roth IRA, Coverdell ESA, etc. to avoid short term tax issues in the first place if you can.

By: jim

jim — Fri, 06 Jan 2006 16:00:05 +0000

Whoops, thanks JLP, it’s been fixed.

By: JLP

JLP — Fri, 06 Jan 2006 15:51:05 +0000

Jim,

Shouldn’t the long term and short term columns be switched around?

By: jim

jim — Fri, 06 Jan 2006 14:20:48 +0000

Sometimes some people just can’t see The Next Great Thing.

By: Cap

Cap — Fri, 06 Jan 2006 14:11:17 +0000

I searched TNGT on all markets and I dont see it.

lies.

but good reminder. if the reason why you bought it no longer applies, its probably time to bail out.