Jim Cramer say this tax reform is no good for investors in the stock market, it will hit their pockets.
You decide, I am an ignorant when it comes to the stock market, so I donât fight with nobody the same I expect them to respect their own ignorance and stay away from my area of expertise.
Individual investors are angry that the Senate Finance Committee has exempted large mutual funds from a provision in the tax bill aimed at preventing shareholders from minimizing taxes on stock sales.
The exemption was reported by The Wall Street Journal. But the provision will still hit individuals with full force, mandating that stock sellers unload their oldest shares first rather than picking the ones that are most tax-advantageous to sell.
Affect only those who do a lot of loss harvesting, actively trying to delay paying taxes and frequent trading around their core position. In other words, traders are most affected. FIFO is the default anyway, and I leave it as default most of the time. In any case, if you have the core position and trading position in separate account, no issue.
Just dont load up on the same stocks or mutual funds, buy something similar. .That way you donât confuse your tax accountant when you sellâŚDoesnât mater what the new rules are, people will quickly adjustâŚWhat bothers me is in the rush to change all the rules the GOP will screw things upâŚWhats the hurry? Why 20% corporate rateâŚHow about 25%âŚWhy eliminate state and local tax deductions. .Afterall it is the high tax states that pay the most in federal taxâŚTalking about biting the hand that feeds youâŚ
There could be heavy selling of stocks as the tax reform approaching approval by Senate. Say, now I have 1000 shares of TSLA with purchase price $50 to $300, cheaper being having long term capital gain. If I donât have much loss, I should sell the cheaper ones as much as I want to capture the long term capital gain tax. If I have short-term losses, I should sell the more expensive ones now which likely are short-term gain before the law kicks in. After the law kicks in, I have to sell those qualified for long term capital gain to set off short-term capital gain.
Recently many pundits including Jil, are predicting weakness as we approach year-end i.e. no Santa Claus rally, guess tax reform is a big reason.
Going forward, can try to avoid loading same stocks. However, many investors tend to buy stocks over a period of time, have to unload down to only core position that they wonât sell for a long time.
Suze Orman is excellent person to listen, follow her simple suggestion, we can become financially stable position. I understand she down votes insurance programs like IUL, but up vote all retirement channels.
Jim Cramer must be avoided, he is clownish towards investments, just a propaganda analysts for those who pays him.
When GOP is full strength, then it is easy to get the bill passed. 2018 Election results may have uncertainty.
Why eliminate state and local tax deductions. .After all it is the high tax states that pay the most in federal taxâŚ
Even in high states, high income earners, like you, me and other investors, are getting affected, but not low income earners, single earners etc. House of Representatives may not have choice but load the tax on someone else head, that is high income earners.
Why 20% corporate rateâŚHow about 25%âŚ
Trump suggestion of 15% corp tax is good, he may compromise 5%, but not 10%. Trump is right for America and its growth. Read the same walls street journal editorial.
Suze has turned herself from a waitress to a lady selling whatever and whoever pays her to advertise.
She started saying that debit/ATM cards didnât create FICO score, to all the sudden promoting her own debit card.
Then, she said that buying a new car wasnât a good idea. But then, she was pushing for the purchase of a vehicle from GM or Ford, I canât recall the exact circumstances.
Lesson? Everybody is pushing a product, you just buy it, you just donât know whatâs in it.
Here, she is against opening an insurance, aka college fund for a kid???
She hates any life insurance, but term.
Here. YOU ARE ONE OF THE LUCKY ONES THAT CAN BORROW MONEY FROM YOUR LIFE INSURANCE!
Then, the compilation of who Suze Orman is. A fraudster!
Can stop following David Morgan. JC didnât say buy n hold these stocks! He made the buy recommendation, is up to you to use your BRAIN as to when to sell. FAST MONEY! Nobody tell you to hold on to them dumbly.
