tag:blogger.com,1999:blog-4402283548766807872.post8734418397894306325..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: Stocks with Capital Gains- To Give unto Ceasar or notThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-4402283548766807872.post-20116460837761913132011-10-11T10:17:48.415-04:002011-10-11T10:17:48.415-04:00Anon, thanks for your thoughts and investing philo...Anon, thanks for your thoughts and investing philosophy. Only one question, what happens when you have a blue chipper like Kodak which does not adapt and is no longer a blue chipper? I assume you still weed out one-time blue chippers on a consistent basis, as many of those have fallen from grace mightily.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-85484660056896231022011-10-11T08:51:18.651-04:002011-10-11T08:51:18.651-04:00It all depends on the type of stocks you hold. Pe...It all depends on the type of stocks you hold. Personnally I ony invest in large and sound dividend paying stocks with a history of dividend growth and hold on them. Thier market value fluctuates of course but since I ma a long term investor bull and bear markets are of little concern to me. If sell one of my stocks than has tripled or quadrupled in value over the years I not only have to pay capital gain tax but my dividend income also takes a haircut. Investment income is of paramount importance to me. I have come to the point where my capital is akin to a pension fund that generates the income that I need to live income. Market fluctuations don't bother me too much as lomng as my dividend income comes in regularly. During the 3008 crash I did not sell any stock at all and all my dividends continued to come in. My bottom line is that it all depnds on the type of stocks you hold and whether dividend income is a high priority for you. The Blunt Bean Counter may be right in some cases but not in my own.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-34714069036678267202011-10-10T09:34:47.406-04:002011-10-10T09:34:47.406-04:00Anon, I would hope after reading the blog you woul...Anon, I would hope after reading the blog you would be considering whether you should sell stocks with capital gains and not worrying about why I was introducing the term income taxes instead of capital gains taxes. But since you deem it worthy of a comment I will respond.<br /><br />If you read the Income Tax Act, there are various sections and subsections for taxing different types of income and the taxation of capital gains are just one section of the Act. The everyday reality is the terms are used interchangeably, but if you want to be "correct" as you say, there is then no such thing as capital gains tax, there are income taxes only. No where on your income tax return does it say capital gains tax, it says income tax which is calculated by including taxable capital gains, employment income, business income etc. and applying income tax rates to the income earned.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-14516607254906650432011-10-10T00:20:51.689-04:002011-10-10T00:20:51.689-04:00I am confounded by your opening paragraph, where y...I am confounded by your opening paragraph, where you (correctly) talk about capital gains taxes, but then shortly after, switch to discussing income taxes. Not sure why you are introducing income taxes into an article about capital gains taxes.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-20174827806778150732011-10-07T11:38:21.258-04:002011-10-07T11:38:21.258-04:00Andrew, I agree 100%. However, as you note "a...Andrew, I agree 100%. However, as you note "assuming the gain does not evaporate in the mean time" is the essence of my blog. If you feel the stock still has room to move, I am with you, but if you think it is full value, I say forgot about the present value and just sell the darn thing.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-12761853477398925322011-10-07T10:49:18.822-04:002011-10-07T10:49:18.822-04:00One thing that is always left out of these calcula...One thing that is always left out of these calculations is the fact that sooner or later, you will pay tax on the gain. It's a sunk cost. The choice is between paying the tax on the gain today, or paying the tax on the gain a number of years down the road (assuming the gain does not evaporate in the mean time), so the cost of realizing the gain now is the difference between the present value of the tax liabilities, which might be substantially less than the tax liability today alone.Andrew Fnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-45271516935873804872011-10-04T17:41:36.271-04:002011-10-04T17:41:36.271-04:00"Sam" is clearly a troll. In my humble o..."Sam" is clearly a troll. In my humble opinion, such comments should be simply deleted and not responded to. Don't feed the trolls. <br /><br />And if a response must be made, I would simply point out that the poor have been getting richer too over the last 200 years of capitalism. <br /><br />Compared to a millionaire of 100 years ago, the poor today have access to cleaner, better, food of greater variety. Better medicine and even better education are also within reach.<br /><br />Items that were luxury goods only 30 or even 10 years ago are now withing reach of almost anyone: car safety systems, large screen TVs, powerful computers, hi-fidelity audio equipment, kitchen equipment, etc.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-20450699727820268212011-10-04T07:54:03.678-04:002011-10-04T07:54:03.678-04:00Sam, I am not sure the rich get richer, but it is ...Sam, I am not sure the rich get richer, but it is at least a case of deferring the tax on a gain that most people cannot and managing the timing of your capital gain.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-59230908019180063672011-10-03T19:29:52.187-04:002011-10-03T19:29:52.187-04:00It must be nice to be rich and own large amounts o...It must be nice to be rich and own large amounts of shares in a company; you can undertake the monetization strategy noted in the blog and get out of capital gains. The rich get richerSamnoreply@blogger.com