To acheive an equivalent tax-deferred yield of 7.5%, I'd have to get around 11% equivalent.
Already have enough in REITs, and the trusts are undependable (IMO). Anyone have any recommendations?
the rate on LT cap gains for 2010,2011 & 2012 is 0% for the first $69,000 if you're in the 10-15% bracket. Since most of my earnings are LT cap gains and I can live cheaply, I stay in the 10-15% bracket; SO NO TAX.
"Long-term capital gains are profits from investments held longer than 12 months. Currently, investors in the 10% and 15% income tax brackets pay 0% in capital gains tax, whereas higher-bracket investors pay 15%. In 2013, these tax rates are scheduled to rise to 20%"
Awful for the entire E&P sector that uses multi-year hedging to avoid market price turbulence and to provide the secure income supporting distributions. The Legacy folks made the specific point that DF was creating the unintended consequence of increasing risk by reducing availability of secure hedging and raising the transaction costs for hedging (the banks/co-parties want a higher profit margin while facing increased political interference risks with business). Given the liquids glut developing after the NG glut, those producers without a dominant oil production program will obviously suffer the consequences.
It's reasonable to expect that there will be an eventual rebound in NG pricing, and with a rebounding economy, liquids pricing will also do better. But when the pricing picks up, the supplies will follow suit, so it's improbable that pricing will ever get high now that shale resources are economically abundant from superior recovery technologies.
I didn't listen to the conference call; I got it from the presentation:
Guidance for 1Q2012: DCF: 1.05, Dist. .69
Guidance for FY2012: DCF: 1.15, Dist. 2.76
(No increase, according to that.)
Of course, things may change.
Glenn, I think that Rockov said $400 mill is now drawn, not 500.
And, I think that we are hearing slightly different things in the cc, which is probably good since we will sort through all of it.
Thanks for the added info.