Does anyone out there know if REM can be bought into a ROTH IRA. In other words, is there a fund family that offers a do-it-yourself Roth whereby you can pick the securities that you want in your Roth account.
I no longer even try to understand the market except that its totally what some wacky analyst touts or day trader believes. stocks earning a few pennies are worth hundreds of dollars a share. Stocks earning any real money are practically worthless.
Gordon's article:Sometimes, when the chairman of the U.S. Federal Reserve speaks, my diaphragm pushes on my lungs hard enough to inhibit breathing. It's not that I don't admire Ben Bernanke on a variety of levels. It's just hard to believe that a man of remarkable intelligence is serious when he says, "In light of the current low interest-rate environment, we are watching particularly closely for instances of reaching for yield."
So members of the Fed are monitoring excessive risk taking, are they? How can anyone refrain from riotous laughter?
My 80-year-old father in Florida never had a need for higher yielding bonds. In the 20 years between 1988 and 2008, he and his wife were quite content to supplement their pension with an average of 5%-6% interest from CDs. Unfortunately for them, the last of the CDs matured in 2010 and the Fed's seemingly endless quantitative easing effectively killed the collective yield on CDs, treasuries, and investment grade debt. Their only choice to avoid invading principal? Pops had to begin risking IRA dollars in higher yielding bonds and preferred stock."
bottom line: you have a 3 pronged attack on mREITS...1)fed with narrow spreads...2)SEC & Fed talking about excessive leverage and possible new rules coming....3)and then you have FHA changes coming with more liberal rules to do more underwater refis. There comes a time, people, when you stand aside...let the idiots in D.C finish with their "mucking things up" regs and rules...and then look to possibly reenter these mREIT common stocks, later...later .... I changed to ALL PREFERRED stocks of these companies, with fixed rate payouts, no dilution risk, first to get paid, etc etc...RSOPRB / NRFPRC / NRFPRD / RASPRC....etc etc...key word PREFERRED. @ fixed 8%+ returns
From what I can tell this is good. I am personally in today.... Nothing is 100% safe, however it is an etf which adds diversity.
...But if you have your REM shares in an IRA, then you'll not have to pay any of the taxes on the dividends, until you remove money from the IRA...i.e. sell it & remove the money (however, there are some complicated rules about these 'things' that I won't even attempt to go into)...But, I never have paid tax on any distributions nor have I worried about any cost adjustments on the shares whenever "roc" was involved...i.e. Uncle Sam will get his full tax rate on my REIT shares (and other stocks and dividends) whenever I remove money from my IRA, later in life...All of it will be taxed at the higher 'personal rate'...but I'll try to hold off removing any money from my IRA until I'm 70.5 y.o.
MY UNDERSTANDING: REITS are taxed at the higher 'personal tax rate' (and not at the lower dividend rate)...My dad sent me some info showing that REM has no "return of capital" listed, so that's nice (with "roc", you have to subtract that portion from your cost basis on the shares, and pay taxes later on the stock gains, for that 'roc' portion / the remainder of dividends received would be taxed now....So, with no ROC that I can find for REM, the total amt. received in dividends will be fully taxable in the year received...at the higher (personal) tax rate.