[bama] okienow no penalty but you will still deal with taxes if you do not roll it to another qualified account. Don't just cash it in to clarify... hope that helps
[bama] steady1 well, for my own children, I use zero coupon municipal bonds. They are insured, there are few tax implications, I know exactly how much I will have as well as when the money will be accessible
[bama] zeros are harder to find right now, but they are still out there
[BWM] owl2 unfortunately... that has to be a personal thing... still too many opportunities for someone to "pose" as a professional.. I still believe in sitting down face to face or having the bank refer me to someone... I have done interviews with a couple of guys
Read More Link on Right
[bama] go-go-rv from Harry Dent "Our thesis was straight-forward: there’s a housing bubble in Canada and, despite their “solid reputation,” Canadian banks are meaningfully exposed and vulnerable. These banks have just as much exposure to real estate loans as their U.S. counterparts did"
[billuke] bama what are your thought about investing a % of some money in a hedge fund investment company? I know the risk is higher but the rewards are there too.
[bama] came out today
[bama] billuke i like and use hedges a lot, in funds or otherwise. In fact, if the only way you can make money in an investment is if it goes up, you missing a valuable part of the trade. Where possible, you should aslo uses hedges so that if your investment moves down, the hedge makes money
[bama] hedge funds are an easy way to do it, but you have to be careful and not get carried away
[billuke] bama I have seen a CNBC show on 3 or 4 hedge funds mentioned - very eye opening
[bama] go-go-rv no, that's a bad thing. Dent is saying that a real estate bubble is forming in Canada, much like what we had in the US leading up to our crash in 2007 and Canada's banks are even more exposed than our banks were
[Barck] BWM Just got on, sorry if this has already been asked. What is your take on the news from Greece? Most everybody think it will help speed "Arvie" up.
[BlessedinAZ] bama/BWM would you suggest getting an outside the bank investment advisor, or would those in the bank's wealth management department be sufficient please? Thank you!
[BWM] Barck posted articles earlier... nothing found on actual default
[bama] billuke I see people get into to trouble with hedges when they start to use them as the primary investment vehicle instead of as a hedge against a down turn in their primary investment. Used properly in a good portfolio, hedge funds can be a great and integral part of a strategy
[BWM] BlessedinAZ my bank has a tax atty outside the bank that works for them... I had actually interviewed them to be my choice.. bank gives him for free
[BlessedinAZ] BWM thank you, but would a Tax attorney be your investment guide?
[bama] BlessedinAZ I would hesitate from trying to determine who to use as an advisor based on where they are located or even which firm they are with. managing money is a very personal endevor and the largest factor for success in my opinion is for you and your advisor to connect personally and
[go-go-rv] BWM - Thank you so much for sharing your knowledge on this investment. I thank GOD that you are here, and the other MODS, to show us the way of making the right choices. There is lots of information out there.
[BWM] BlessedinAZ he will set up my trust/llc's and such which will be the "holding" for my other investments...
[bama] develope a relationship of trust and mutual respect. if you cannot get there, it does not matter his credentials, you will have a bad experience
[go-go-rv] bama - so what you are saying is to wait until the real estate bubble pops and then buy a home?
[bama] go-go-rv sno, just relaying what one respected analysts is saying about Canadian banks
[Barck] BWM Well if you still feeling great about this week then I guess I won't sweat it either. Talk to you later. Got to go!
[go-go-rv] bama - IYO how long do you think before the bubble pops??? Would you put money into their banks?
[BlessedinAZ] bama I agree with that and almost any other business relationships, Your feeling, then is let the $$ sit in the bank and go from investment house to investment house until we find an amicable advisor?
[bama] go-go-rv they seem to have a good financial backstop system in place and have already received some bailout to help. I would simply suggest you find a competent advisor familiar with the canadian economy who you can understand and take it one step at at time
[go-go-rv] bama - ok, will do, thanks for the info
[bama] BlessedinAZ that is one approach. Interview as many as it takes until you find someone you can work hand in hand with. The worst type of clients or me are the ones who say" I don't understand
this stuff, you just handle things". I almost always reject hose type of clients because it is very
[go-go-rv] BWM - Instead of gifting money, I have decided to just the ppl 25k IQD to cash out for themselves. Any suggestions on that one? Thanks.
[bama] difficult to manage the relationship. If they go well, they are a genius for bringing the money to me and if they go bad, I am a complete idiot and they have n ownership. I insist my client understand everything we are doing and if not or they are not capable, we take it very slow until they do
[BWM] go-go-rv still a gift unless you have gifting letters done prior to rv...
[go-go-rv] BWM - just give the ppl....spelling duh
[BWM] go-go-rv I'd just get several made out and get them notarized...
[BWM] ok... storms getting worse and I just had a couple of really good calls... chins up and let it rain...
[bama] if your gifting 13,000 worth of IQD at today’s value, i want to be on your gifting list
[go-go-rv] DinarNut bama - it's only a 25K IQD
[bama] go-go-rv so, in reality, you are giving them about $21 ....
[go-go-rv] bama - yes, so should i still do a gift letter
[DinarNut] when it rv's in their hands then they will deal with taxes at exchange
[go-go-rv] DinarNut - yes, but when it comes time to cash in, how does the bank know that I just didn't give it to them on that day?
[bama] go-go-rv if you are giving it to them now and they take position then it is probably not necessary because as DinarNut point it, it is a bearer instrument meaning whoever is holding it is the owner. if you are gifting it to them now but you are keeping it until after RV and then will give it to them, the gifting letter serve to prove you "gave" it to the prior to the value changing and doing so advoids the tax implications of a large gift. At least that is the idea
[DinarNut] go-go-rv well ya know they don't even ask where ya got it ,,, do they???
[go-go-rv] bama - it was my plan to hold on to it in case they lost it and I figure they would have to come with me to the bank to cash out
[bama] go-go-rv it won't hurt to have them but it may not be necessary, just up to you
[bama] go-go-rv then by all means, do the letter and cover your bases