If you need tax free income check out closed end muni bond funds that use a little leverage and sell at discounts. They're borrowing $$ for next to nothing and using the cash to buy minis that are tax free to their shareholders. Instead of earning 4% tax free you could safely earn 5-6% tax free but check with your accountant first to see if it works for you. It doesn't for me because I'd have to pay state income tax because I can't find a closed end fund that buys Oregon muni bonds.
Here's a fund that invests in CA-Nuveen California Municipal Value Fund 2
Grandma thanks you. It currently makes up 2.8% of her portfolio and is her 13th largest holding.
"Altria Group, Inc. (Altria) (MO) today announced that its Board of Directors voted to increase Altria’s regular quarterly dividend by 8.3% to $0.52 per common share versus the previous rate of $0.48 per common share. The quarterly dividend is payable on October 10, 2014 to shareholders of record as of September 15, 2014. The ex-dividend date is September 11, 2014."
For her, the dividend is federally tax free. So far this year, she's only taken long term gains so she'll be paying very little in federal taxes but Oregon will collect at least 5% of her gains.
About 60% of my equity value is in BRK but it only makes up 40% of all my liquid assets.
My IRAs are all in the 10-25% BRK range.
I'd still rather own BRK than the S&P 500 so that's where I'll stay.
Thanks HC, My interest in CEFs corresponds closely to my given cash on hand at a given time. So as my cash holdings rise so does my thirst for bargains.
So if my cash reserves are low I don't bother looking but now I'm on the hunt.
What do you think of these levered bond funds selling at a discount that Bill Gross talked up on CNBC last week I believe? I'm considering a small investment for my IRAs.
I'll be going to Vegas in October. I'll be sitting by a pool betting on football and relaxing. We're in the middle of a kitchen remodel and my wife and I could use one.
Also bought into a closed end fund today for IRA #4. I took a 2% position in ADX and will be adding more in other IRAs on any weakness. It trades at a 15% discount to net asset value so unless the discount narrows I'll continue to hold it.
I purchased a 2% position in ADX today in IRA #4.
It trades at a 15% discount to its NAV and has low fees with reasonable returns.
Anyone else follow the closed end fund market?
And I believe it's a $2 billion company. When I got in this firm it was trading at less than 10 times earnings and only 4 times its net working capital.
But that's what makes a market.
Buy at 50 and sell it at 65 is my motto. Therefor today I have it at a sellllllll.
I'm short the 90 call options and the stock is at 92.66 so my shares will be called away today.
Also sold more put options against DECK that would put me back in it under 85.
In other news-next week we're picking hops so I'll be taking my annual working vacation, therefor I'll have very little time for sharing ideas via this board.
I'll go out on a limb and make a prediction--We'll have a 6-12% selloff in the market which starts today and continues into late October.
My shares should be called away at 90 unless there's a dramatic selloff at the end of the day. I also sold put options against DECK that require me to buy back my position if the stock drops 10% in the next few months.
DECK currently priced at 92.66/share.
"Coca-Cola to pay $2.15 billion for nearly 17 percent stake in Monster Beverage"
And you're not doing too bad yourself.
KO has finally woke up and smelled the coffee.
Similar to the GMCR deal
Lucky for me I just sold puts against MNST after their latest earnings report. It's up another 14 in after hours trading on the KO news.
Yes, I lost 80% of my net worth in the crash of 1972 and 73 but by 1977 my net worth had grown by 10 fold.
Ironically, a company that I owned was taken over by a company that was later taken over by Berkshire. So you could say that I still own the same stock I started with at the age of 12.
Actually my wife purchased another Keurig coffee maker because she wanted a different color.
The old one will be used during the upcoming hop harvest on the farm and later will end up in my man cave.
Thank you GMCR.