Money and Investment

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proman said:
Just curious. Let's say you have a mid 5 figure sum to invest. Stocks only, I don't do mutual funds and I don't know how to do options/bonds/etc. How would you split up the money and what would you buy?

I already have an airline (AMR, 150% return and 3 ulcers), so something probably a little less risky than that. My Roth has JDSU (bought at 1.60), MSFT (bought at 26 + special div) and NLS (bought at 15). This for my regular account for now.
Click to expand...

I'll toss you some names that aint goin anywhere. Should have monster returns on them all with little to no risk.

FRO- oil tanker
PCU- copper
AUY- gold
CMCSA- cable
FSLR- solar energy
DF- milk food stuff
SHLD- sears holdings


All these stocks should have monster long term gains. Nice diversity
That is if ur happy with about 30-40% return per year.
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toughlife said:
I opened a bank account last year in another country whose currency is also the US dollar. My goal is to stash money there when I begin to work as an attending. I also have citizenship in that country so I have access to anything and everything there just like the locals.

Are savings in international accounts off-limits to lawyers in the event of a lawsuit?
Click to expand...



absolutely not..........offshore accounts are risky and can be taxed...I would talk with a profession advisors..
 
I got a big baller stock for you all. GIGM
small cap
check it out!!!!
this things gonna get you some fast money.
 
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dhb said:
DSX-dry cargo yields 8+%
Click to expand...

i don't really like stocks. but if you're looking for yield, try PVX or CNE (at least until 2011 when Canada begins taxing trusts) or RIT.

but if you really want to make money and get instant equity when you buy, cash flow, appreciation, and tax benefits, buy rental real estate! For example, check out our latest purchase. It is currently under contract and will be our 13th unit. It's not even a foreclosure! No bank fees, PMI, appraisals, surveys needed since we are using a private investor to finance half of it.

$20,000 condo purchase price
Year built: 1983
1 bed/1bath
650 sq. ft.
50% down or $10k
$600 market rent (we calculate at $550)
40% return on equity
$270 cash flow / month or 30% cash return (i.e. yield)

Click here to see pictures of the condo.

Now show me a stock that gives you 30% yield, is purchased 40% below market price, appreciates over time, and has incredible tax-benefits?
 
proman said:
I personally don't believe in mutual funds or ETFs etc. I invest in individual stocks.
Click to expand...

You don't believe in mutual funds? Read "A Random Walk Down Wall Street"
Index mutual funds outperform actively managed funds and analayst stock pick based portfolios EVERYTIME its been studied.

I am no investment whiz (by a long shot), just passsing on what I have learned
 
toughlife said:
I opened a bank account last year in another country whose currency is also the US dollar. My goal is to stash money there when I begin to work as an attending. I also have citizenship in that country so I have access to anything and everything there just like the locals.

Are savings in international accounts off-limits to lawyers in the event of a lawsuit?
Click to expand...


Maybe, but it's much less likely when you publicly advertise that you have those assets. If you're going to go down the path of hiding money offshore, you need to 1) not advertise it and 2) hire someone who knows how to do it.
 
Play it safe here. If its heavy, buy it. steel, copper, gold, silver. Its all a good buy. Hold it all until all this war crap and china tax crap ends. I would advise to cash in on any risky stocks and buy up metal. These metals hold great value as the dollar weakens.
 
I found a cool salary calculator at http://www.paycheckcity.com
You select a state and some basic data about your tax return, and it spits out your taxes and salary, however often you want to divide it up.

Without deductions, I calculated the following for $400K gross pay:
After taxes, assuming single filing status, this becomes:

$240K in NY state
$225K in NYC
$249 in CT
$257 in IL
$240K in NC
$246 in GA
$269K in Nevada, Florida, and Wyoming
$278 for AZ
$234K in CA
$237 in DC
 
matt1234321 said:
Play it safe here. If its heavy, buy it. steel, copper, gold, silver. Its all a good buy. Hold it all until all this war crap and china tax crap ends. I would advise to cash in on any risky stocks and buy up metal. These metals hold great value as the dollar weakens.
Click to expand...

I agree 100%
Does anyone know of good uranium stocks with demand from asia the price of uranium is going to go through the roof
 
powermd said:
I found a cool salary calculator at http://www.paycheckcity.com
You select a state and some basic data about your tax return, and it spits out your taxes and salary, however often you want to divide it up.

Without deductions, I calculated the following for $400K gross pay:
After taxes, assuming single filing status, this becomes:

$240K in NY state
$225K in NYC
$249 in CT
$257 in IL
$240K in NC
$246 in GA
$269K in Nevada, Florida, and Wyoming
$278 for AZ
$234K in CA
$237 in DC
Click to expand...

YOu need to add Texas. With NO fellowship you should look hard at that State.
 
Ok,
check this out for Uranium stocks:
http://www.resourceinvestor.com/pebble.asp?relid=27585

It seems that you are correct in this being a wanted commodity.

The global warming people are trying to shut down all gas / coal fired generation, and have hailed the reactor as the best method of generation.

That being said, we should be in for another Russian surprise. Putin has authorized the rebuilding of all his reactors, which apparently is against Russian Law. ( graphite rod reactors)
And rightly so, the Chernobyl accident still has hot soil.


foil:scared:
 
Take a look at last months insider buying on dsco. Something is about to happen here. I had to buy it back at 2.27 a share this morning when i checked it out.
 
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How about corn?

All this talk that Bush, et al do about ethanol. IS this a good sector to get into? They say the price of corn has gone up....

ANy thoughts ?
 
EtherMD said:
Fair Enough. I was just trying to get my point across. For those living on $350,000 per year from paycheck to paycheck (I know quite a few) a drop in income to $200,000 would be quite a problem. In our society there is both overt and sublimal pressure to live the good life/American dream. This means spend, spend and spend some more. Nice cars, luxury homes and lots of expensive vacations really eat into a salary-even a $350,000 a year one.
Remember, Uncle Sam is going to get about 35% of that $350,000 right off the top.
Click to expand...


35%? It feels more like 50%.

Just paying my taxes and watching the government rob me.

Anyways, I have always heard the quote that everyone should have a mortgage that is 25% of their income. Some how that works best for tax benefits and stuff. I am totally a newbie in the world of finance, but I was just curious about your opinions on that stat.
 
Laurel123 said:
35%? It feels more like 50%.

Just paying my taxes and watching the government rob me.

Anyways, I have always heard the quote that everyone should have a mortgage that is 25% of their income. Some how that works best for tax benefits and stuff. I am totally a newbie in the world of finance, but I was just curious about your opinions on that stat.
Click to expand...


That is simply a benchmark that lends use to determine if you will be able to pay your note back as agreed. Some lenders stretch it to 33%. I dont know where they come up with the numbers. My advice to you is to stick with a traditional mortgage that you can afford (30yr or 15 yr fixed). All of these ARM's and interest only mortgages are like playing the casinos. Recently, the house has started to win as witnessed by the rash of foreclosures.
 
mille125 said:
That is simply a benchmark that lends use to determine if you will be able to pay your note back as agreed. Some lenders stretch it to 33%. I dont know where they come up with the numbers. My advice to you is to stick with a traditional mortgage that you can afford (30yr or 15 yr fixed). All of these ARM's and interest only mortgages are like playing the casinos. Recently, the house has started to win as witnessed by the rash of foreclosures.
Click to expand...

Hey there MILLE

QUestion for you. I was lookign into buying a condo for 300K. YEs, it's that expensive out where I'm at for a 2bed/2bath.

I was thinking of a 30 yr fixed paying interest only for 10 years. How could they screw me over? THe way I look at it is that I can OVER pay and allocate that money toward principal if I wanted to. There's no pre payment penalty. The thing I like about interest only set ups is that you have lower monthly payments and CAN overpay and tx it as a traditional 30yr fixed if you want. There's flexibility. Of course since my wife and I are both residents, we will be allocating mroe than just 25% on our mortgage (it's actually closer to 40%) which means we will have to live more frugally.

Am I overlooking something blatantly obvoius? I just thought buying a place is a better deal, because if I rent in the area I'm at for a 2bed/2bath it will be about $2000. After assements,taxes, mortgage with buying it's $2200, which at the end of the year after taxes will equate to $2000 or so a month.
 
I wouldn't put my money on corn yet. To much being planted this year.
Inflation is still getting worse along with gas prices. COPPER UP TO 250 and still goin up.


PCU= BUY BUY BUY best copper play in my mind of the big names.
GSF= BUY BUY BUY this company should be bought and if it doesnt get bought just look at the earnings :) oil drilling company that shouldnt be effected by oil prices.
DVR= BUY BUY BUY for a quick 10 %
GIGM= buy buy buy
ACE= THIS AINT EVEN RIGHT. selling at 8 times earnings. this insurance beats the estimates every quarter. I give this a buy times 10.
EGY= energy play, a possible 50 % up on this one. buy times ten. this one could hit 10, but id sell before that. dont get to greedy.

dsco= sell sell sell then buy again at around 2 dollars lol
fro= sell sell sell. dont buy it back till they post some good earnings.

some bigger names that can make u some money in the long run that are too cheap are

jnj= medical
aeo= store
anf= store
shld= store
sbux= coffee shop
intc= comp chip

all with pretty good numbers. dont take my word for it check it out :)
 
I wouldn't put my money on corn yet. To much being planted this year.
Inflation is still getting worse along with gas prices. COPPER UP TO 250 and still goin up.


PCU= BUY BUY BUY best copper play in my mind of the big names.
GSF= BUY BUY BUY this company should be bought and if it doesnt get bought just look at the earnings :) oil drilling company that shouldnt be effected by oil prices.
DVR= BUY BUY BUY for a quick 10 %
GIGM= buy buy buy. higher risk play but this ones a winner.
ACE= THIS AINT EVEN RIGHT. selling at 8 times earnings. this insurance beats the estimates every quarter. I give this a buy times 10.
EGY= energy play, a possible 50 % up on this one. buy times ten. this one could hit 10, but id sell before that. dont get to greedy.

dsco= sell sell sell then buy again at around 2 dollars lol
fro= sell sell sell. dont buy it back till they post some good earnings.

some bigger names that can make u some money in the long run that are too cheap are

jnj= medical
aeo= store
anf= store
shld= store
sbux= coffee shop
intc= comp chip

all with pretty good numbers. dont take my word for it check it out :)

super cheap play is ucpi. rev increase of 280% in 2006 and it has an expected rev increase of 300% compared to 2006 in 2007. get a double and sell it, but its a high risk play.
 
yall have to get in before the fed speaks or you will miss out on major cash!!!
 
The potential problem is that you have a limited time frame (residency). After that, I assume that you will be moving and will need to sell. This could be very bad if prices fall as you could have negative equity... Houses are also not always as liquid an asset as we might wish.
 
SleepIsGood said:
Hey there MILLE

QUestion for you. I was lookign into buying a condo for 300K. YEs, it's that expensive out where I'm at for a 2bed/2bath.

I was thinking of a 30 yr fixed paying interest only for 10 years. How could they screw me over? THe way I look at it is that I can OVER pay and allocate that money toward principal if I wanted to. There's no pre payment penalty. The thing I like about interest only set ups is that you have lower monthly payments and CAN overpay and tx it as a traditional 30yr fixed if you want. There's flexibility. Of course since my wife and I are both residents, we will be allocating mroe than just 25% on our mortgage (it's actually closer to 40%) which means we will have to live more frugally.

Am I overlooking something blatantly obvoius? I just thought buying a place is a better deal, because if I rent in the area I'm at for a 2bed/2bath it will be about $2000. After assements,taxes, mortgage with buying it's $2200, which at the end of the year after taxes will equate to $2000 or so a month.
Click to expand...




your case is a prime example...the market will play the "house" instead of the bank in your case. I have the following points to make:

1) You are obvious low in a high real estate market (i am basing this on the purchase price of your condo). I dont know where you are specifically, but most of the high real estate markets have real been hit hard with declining property values. With an interest only situation you are really rolling the dice. If the real estate values even drop 2-3% you will be quite upside down in your mortgage. Over the next three to five years no one really knows which way the market will go. I hope for your sake that it goes up or stays the same. The numbers get even worse if real estate agents take 3% each in the sale.

2) Most people with financial savvy would have advised you to rent. It is a much safer option in your situation (moving soon in a volatile market). It would have been a lot better if you had a 30 yr fixed traditional mortgage. I know that your mortgage payment would have been higher with this option, but this is where the smart money is. If people cant make the payments in a traditional 15 or 30 yr fixed model they are likely in more house than they can afford. 40% of your income to a mortgage in quite high and may be unsustainable for some.

With that said I do wish you luck. Many Americans are in the same situation as you. Their options in a bad market are stay in the house, use it as a rental, or learn from your mistake and take the big loss.
 
Buying a home is more than just a mortgage. Closing costs, inspection fees, title insurance, realtor's cut can add thousands of fees. And when you sell it, they can reduce the amount you receive by thousands. You need to be in the home for several years to comfortably make a profit in most markets once you take in to account the various expenses that aren't always clear.

On top of this, the cost of maintaining a home isn't included in the mortgage. Some loans don't include property tax payments. And they surely don't include homeowner's fees. What happens if your condo association decides you need a new roof? They may assess a one-time fee of several THOUSAND dollars to cover it. Can you afford that?

Also, it takes a lot of time to manage a home. When you rent, you call someone else to arrange to fix things/replace furnace/maintain outside.. etc...

many of the posters have stressed the unknowable future. Interest-only loans, IMO, are BAD. They allow you to "buy" more than you can afford. And then the bank owns your home AND you.

For me, paying off debt is a priority. I paid off high-interest loans first, before the days of consolidation, then started on low-interest. At the same time, I contributed to retirement. Even during residency, ROTH IRA and deferred compensation. I highly encourage residents to open ROTH IRAs. Once you get a job that pays more than ~135k you can only do traditional IRA. If your residency will match your contributions to retirement, do it!!! IT's free money.
 
WOW


look at GOOG (aka Google)!!!

But jeez 472 a share. Sometimes I wonder if I would get better returns and be equally safe with transferring my money from a money market paying 5.06% APY to google stock. Google seems like a slow but steady guy. Cant really see why it would ever go down. The creature just keeps expanding and is quite innovative!
 
nonono

google aint that safe.

do

shld - retail 20%
gs - finance 20%
pcu - energy 20%
att - tech 20%
toyota - automotive 20%


now thats safe plus, i swear to you you will gain more than 20% a year with this portfolio and you dont have to worry about ****. divide it up equally 20 % of your money in each. so when one stock gets hit it wont matter.
 
Here are a few short ideas for the summer - enjoy!

URME - Short @ 5.85
ZROS - Short @ 1.05
MDTL - Short @ 17.70

Good luck hopefully as intern year winds down I will be able to post more. Had a couple of extremely profitable trades this year but didn't get around to posting - sorry.

Mario
 
matt1234321 said:
nonono

google aint that safe.

do

shld - retail 20%
gs - finance 20%
pcu - energy 20%
att - tech 20%
toyota - automotive 20%


now thats safe plus, i swear to you you will gain more than 20% a year with this portfolio and you dont have to worry about ****. divide it up equally 20 % of your money in each. so when one stock gets hit it wont matter.
Click to expand...

You must watch Cramer becaue your foolproof portfolio is earily similar to the stocks he has been pushing. Quite sad people still listen to that loser.
 
sounds like someone listened to cramer, didn't do homework, and got burnt.

yeah i watch mad money and fast money and any other stock shows i can find.

but i also find my own stocks and do my own research.
 
Here's an interesting pick. Phase IIIB trial. Will likely be approved late 2007 or early 2008. I already got a double from it, should go much higher.

acel
 
ok i got a micro cap stock here that should go through the roof!!

consider long on PNMS.PK. I bought this one this morning, its bottomed.
most under valued stock ever!!!

look for a 1000 percent gain before u sell.

Do the homework. Read the press releases. Goto the website. http://www.panamersa.com/

This is the best speculation play ever!!!!!!
I expect more than a 1000% gain on this one within the year. Just be patient, because it might happen this month. I dont think u can lose anything here. This is a great risk reward for a micro cap stock.

If you want to wait for the jump up you can put it on watch until it crosses the .0017 mark and then jump on it cuz its going above .01

I'll give u the skinny. In November 2006 this stock was trading at around .01 due to the monster numbers it was putting up. They were late filing, causing massive selloff. They filed early this month and the numbers were confirmed. The stock hasn't budged since the sell off. The CEO is pissed off and thinking about buying all the shares and going private because his company is so ridiculously undervalued. Profit was up 545% in 2006 from 2005. The most recent news is, the first quarter of 2007 profits have increased and beaten the year of 2006 already. Yeah. beat the whole year of 2006 in one quarter. The stock was at .01 in 2006. Selling now for .0013 :bullcrap: .Do the math. LOL

Not only that, the ceo is so frustrated with the undervalue he has hired a public relations person to redo the website and handle press releases. He also hired a firm to keep the books up to date.

I paid .0015 for this thing and now its even cheaper. :banana: Time to crack open the vault.

how do yo get a market cap of 10 million and profit in one quarter of 27 million+? bull**** thats how. The stock aint valued right. Compare it with googles 1,100,000,000 in earnings and 140,000,000,000 market cap.

As it stands PNSM should hit 100,000,000 in earnings for the year end 2007 on the low end. That would mean the market cap should be around a billion dollars if u compare it with a stock like google.

So if you ask me, the stock is about 100 times less than what it should cost lol.

Im so bullish on this stock. You have to get in on this one. if you are skidish of waiting for the thousand increase grab a 100% increase and bail. prolly get that in a week or 2.

I dont expect to get what it should be valued at though i think 10 times what u pay is a low price for a stock that is selling at 100 times less than it should cost.
 
http://biz.yahoo.com/iw/070316/0227579.html

Effective immediately:



-- PANAMERSA Corporation authorized shares will be reduced by 4 billion
shares.

-- The Share buy back will begin in conjunction with a shareholder price
guarantee

-- A guarantee will be extended to loyal shareholders who wish to be a
part of PANAMERSA Corporation's future.

-- All shareholders who request their certificates from their broker and
exchange those shares for PDRs issued by the Fundacion and agree to hold
them for 1 year will be guaranteed a minimum price of $0.02 per share or
the current market price, which ever is greater, or the option to keep the
PDR. In addition each guaranteed PDR will be backed by Gold reserves.

-- All shareholders who request their certificates from their broker and
exchange those shares for PDRs issued by the Fundacion and agree to hold
them for 2 years will be guaranteed a minimum price of $0.04 per share or
the current market price, which ever is greater, or the option to keep the
PDR. In addition each guaranteed PDR will be backed by Gold reserves.

-- All PDRs are issued through the Fundacion Pan America.

IM TELLING YOU BUY PNMS.PK NOWWWWWWWWWWWWWWW!!!!!
 
matt1234321 said:
http://biz.yahoo.com/iw/070316/0227579.html

Effective immediately:



-- PANAMERSA Corporation authorized shares will be reduced by 4 billion
shares.

-- The Share buy back will begin in conjunction with a shareholder price
guarantee

-- A guarantee will be extended to loyal shareholders who wish to be a
part of PANAMERSA Corporation's future.

-- All shareholders who request their certificates from their broker and
exchange those shares for PDRs issued by the Fundacion and agree to hold
them for 1 year will be guaranteed a minimum price of $0.02 per share or
the current market price, which ever is greater, or the option to keep the
PDR. In addition each guaranteed PDR will be backed by Gold reserves.

-- All shareholders who request their certificates from their broker and
exchange those shares for PDRs issued by the Fundacion and agree to hold
them for 2 years will be guaranteed a minimum price of $0.04 per share or
the current market price, which ever is greater, or the option to keep the
PDR. In addition each guaranteed PDR will be backed by Gold reserves.

-- All PDRs are issued through the Fundacion Pan America.

IM TELLING YOU BUY PNMS.PK NOWWWWWWWWWWWWWWW!!!!!
Click to expand...

classic reverse split pump and dump scam - be careful bro
 
EtherMD said:
Wrong. 55 is NOT nearing retirement age and in fact, the recommended stock exposure is still 30% or more. Suzy has $1 million in the stock market and $24 million in bonds. This is not what most financial advisers would recommend for wealth growth and not what I would be doing with my money even with $25 million dollars.

This woman gives advice to millions of people on cable TV. Yet, when it comes to her own money she follows a different path. Typical of many financial advisers who want you to bet on the market and keep good debt while they pay off their own debt and play the market conservatively.
Many financial Advisers want you to carry a mortgage for life because you can earn more money in the stock maket. I prefer the "conservative" approach and like little debt of any kind.
Click to expand...

Just saying "she has $24 mil in bonds" is a pretty vague statement and doesn't really tell you much about her portfolio or how much risk she's willing to assume. She probably is "playing the market conservatively", but you can't just automatically make that kind of assumption. What kinds of bonds are they? Corporates/convertibles (high grade/low grade), municiples, TIGRs, T-bills/bonds, foreign paper? If you don't know what you're doing, the bond market can be just as hazardous as the stock market. And just because she has so much in bonds doesn't mean she isn't pursuing growth. There are lots of people who pursue capital growth through high quality corporate bonds and convertibles.

Also, it's true...the rich are different. Asset allocation for a multimillionaire is different than that for the average Joe. The average person will have to work hard to manage their nest egg. They don't know how long they'll live so they have to have a higher percentage of growth oriented investments. OTOH, most really wealthy individuals care little for aggressive growth strategies. They don't have to worry about out-living their money and just want to protect it. With that kind of moola you could live really well on the interest and never touch the principle. I'm pretty confortable with risk and have alot of experience in investing, but if I had $25 mil, I'd probably play it safe too. So...I don't think Suzy, or financial planners in general, are really selling people down the river.
 
ceo stated there will be no reverse split.
 
besides pump and dump isnt based on factual information. its an email scam. I'm basing my pick on current earnings stock price= .0014 cash flow per share= .0035
forward earnings of 100 million for 2007. based on 7.6 billion market cap that would put earnings over a penny for the year 2007. if u value the stock a good buy at 10x earnings then the stock value alone is worth 13 cents per share. Its a risk I'm willing to take. Plus the ceo is the largest share holder. So he is for the share holder's benefit. Im sticking to my pick see you in about 1000% lol.
 
I'm sorry,
from my research I cannot find specific info on how many shares each high ranking officer owns of PANAMERSA Corporation .
Hmmmmmmm.



This group of entities is dedicated to promoting and assisting the Commercial Integration of Latin America into the Economic Development of the Western Hemisphere and the sustainable protection of Earth's Flora, Fauna and Water Resources through the MicroForests Program. PANAMERSA Corporation headquartered in Dallas, Texas



Well,
I cannot see how this company will turn a profit promoting nice and green stuff.Unless the microforest is pot.

I reccommend buying Cost
wait until the world hick-ups,
then dive onto it...........
High demand for it's goods


foil
 
SleepIsGood said:
WOW


look at GOOG (aka Google)!!!

But jeez 472 a share. Sometimes I wonder if I would get better returns and be equally safe with transferring my money from a money market paying 5.06% APY to google stock. Google seems like a slow but steady guy. Cant really see why it would ever go down. The creature just keeps expanding and is quite innovative!
Click to expand...

Google will plateau eventually. Antitrust lawsuits. Rise of opensource software. Something will hit it. Like Microsoft was hit, and stagnated. But until then, GOOG is gonna keep profiting, especially with the youtube+doubleclick combo.
 
matt1234321 said:
besides pump and dump isnt based on factual information. its an email scam. I'm basing my pick on current earnings stock price= .0014 cash flow per share= .0035
forward earnings of 100 million for 2007. based on 7.6 billion market cap that would put earnings over a penny for the year 2007. if u value the stock a good buy at 10x earnings then the stock value alone is worth 13 cents per share. Its a risk I'm willing to take. Plus the ceo is the largest share holder. So he is for the share holder's benefit. Im sticking to my pick see you in about 1000% lol.
Click to expand...
I seriously doubt it but good luck man - I hope it works out for you. I have been following/playing the market for years. Learn from others mistakes these penny stocks very rarely work out, but I guess you never know. Don't want to get into an argument because its your money and you are going to whatever you want regardless. I wouldn't invest 100$ in this company though. I do however agree with your bullish position on metals.

Mario
 
35....40%!!!


You guys need some new accountants. I hope that you learn sooner rather than later that paying 41% on your gross makes absolutely no sense at all.
 
To all you financial savvy Anesthesiologists,

I'm interested in buying an entry-level condo or townhouse in a city where I am not going to school but would like to settle down in eventually (family ties). I am an MS-2 and am (obviously) not sure where I will do my residency.

Here are my thoughts: I sense a bottom in the real-estate market. I'm interested in renting this property out until I decide to reside in this area.

I foresee contributing about a 15% down payment, borrowing about 65% from family, and about 20% from the bank.

What sort of obstacles or risks might I be overlooking in regards to an investment like this? Thanks.

From,

A future financially savvy Anesthesiologist
 
InGasWeTrust said:
35....40%!!!


You guys need some new accountants. I hope that you learn sooner rather than later that paying 41% on your gross makes absolutely no sense at all.
Click to expand...

It may not make sense, it may not seem fair, but in my situation, it's the cold hard truth. I don't care how much fancy dancing my accountant does, there's no legal way around it. The problem is, I'm an employee. When you are an employee you have little recourse. You have few of the business deductions afforded those who work for themselves, and to add insult to injury, when your income reaches a certain level, you lose many of the most significant deductions. For example, last year I paid nearly $7000 in student loan interest, but wasn't able to deduct a penny of it because my income was too high. I'm still paying off credit cards (this is my first year in practice) and haven't bought a house yet. Also, I'm single with no children, so basically, I'm totally screwed! I'm so desperate for deductions and tax shelters that I'm even considering investing in oil and gas ventures (very speculative stuff) because of the tax advantages.
 
XXBlockheadXX said:
To all you financial savvy Anesthesiologists,

I'm interested in buying an entry-level condo or townhouse in a city where I am not going to school but would like to settle down in eventually (family ties). I am an MS-2 and am (obviously) not sure where I will do my residency.

Here are my thoughts: I sense a bottom in the real-estate market. I'm interested in renting this property out until I decide to reside in this area.

I foresee contributing about a 15% down payment, borrowing about 65% from family, and about 20% from the bank.

What sort of obstacles or risks might I be overlooking in regards to an investment like this? Thanks.

From,

A future financially savvy Anesthesiologist
Click to expand...

1. Are you familiar with the term "herd mentality"? As long as there are still TV shows devoted to "flipping", the real estate market hasn't even BEGUN to correct itself. Of course it will vary by region, but I don't think we'll see a true bottom for a few more years.

2. Who's going to manage the property with you in another state? You could hire a management company, but with only one property, it would pretty much gobble up any profit you might make.

3. Can you afford the payments if the property is vacant for two or three months? What if you get a tennant who trashes the place? Can you afford seriously expensive repairs? If you have to evict someone, you'll have to appear in court. Will you be able to drop what you're doing to fly in for a court date?

4. Do you have ANY idea how hard it is to find a good plumber or heat & air man, or electrician, or painter, or even just a good handyman?

5. You're still YEARS from finishing your training and could end up anywhere.

My parents have been involved in the rental market for years and they've done really well, but it is HARD work. Right now, they're in the process of downsizing their inventory and bracing for the downslide. Now is not the time to "dabble". Put your money in a CD and save yourself alot of grief.
 
PainDr said:
It may not make sense, it may not seem fair, but in my situation, it's the cold hard truth. I don't care how much fancy dancing my accountant does, there's no legal way around it. The problem is, I'm an employee. When you are an employee you have little recourse. You have few of the business deductions afforded those who work for themselves, and to add insult to injury, when your income reaches a certain level, you lose many of the most significant deductions. For example, last year I paid nearly $7000 in student loan interest, but wasn't able to deduct a penny of it because my income was too high. I'm still paying off credit cards (this is my first year in practice) and haven't bought a house yet. Also, I'm single with no children, so basically, I'm totally screwed! I'm so desperate for deductions and tax shelters that I'm even considering investing in oil and gas ventures (very speculative stuff) because of the tax advantages.
Click to expand...



welcome to the world of the heavy tax....I agree it totally sucks..your marital status and income level hurt you.....a few suggestions that may or may not work for you

1) Max out retirement if not already done (this is a must).
2) Open an Health savings account if possible. Works exceptionally well if you are young and healthy. Can be a tax shelter. It does not phase out.
3) Consider some charitable contributions. It makes you feel good and gives you a tax break.
4) Keep all of your receipts for sales tax (also does not phase out). If you by a new house or car, this can really be significant.
5) Find a good financial advisor/accountant..



I sympathize with you. I really got beat up myself this year. However, since I work for myself, I was able to get some deductions that werent available to you (and I got to contribute 44K to my retirement). You can try a lot of things to reduce your tax burden but sometimes you just have to pay the piper.... Good luck...
 
PainDr said:
1. Are you familiar with the term "herd mentality"? As long as there are still TV shows devoted to "flipping", the real estate market hasn't even BEGUN to correct itself. Of course it will vary by region, but I don't think we'll see a true bottom for a few more years.

2. Who's going to manage the property with you in another state? You could hire a management company, but with only one property, it would pretty much gobble up any profit you might make.

3. Can you afford the payments if the property is vacant for two or three months? What if you get a tennant who trashes the place? Can you afford seriously expensive repairs? If you have to evict someone, you'll have to appear in court. Will you be able to drop what you're doing to fly in for a court date?

4. Do you have ANY idea how hard it is to find a good plumber or heat & air man, or electrician, or painter, or even just a good handyman?

5. You're still YEARS from finishing your training and could end up anywhere.

My parents have been involved in the rental market for years and they've done really well, but it is HARD work. Right now, they're in the process of downsizing their inventory and bracing for the downslide. Now is not the time to "dabble". Put your money in a CD and save yourself alot of grief.
Click to expand...



absoluetly agree with the above....being a landlord is not a free lunch (especially when you are in another state).....any or all of the scenarios that pain dr gave you are plausible....if I were you I would just put the money in a CD....if it is a sizeable amount you could get anywhere from 5-7%...maybe times have changed, but when I was in med school the last thing that I needed to worry about is some disgruntled tenant
 
mille125 said:
welcome to the world of the heavy tax....I agree it totally sucks..your marital status and income level hurt you.....a few suggestions that may or may not work for you

1) Max out retirement if not already done (this is a must).
2) Open an Health savings account if possible. Works exceptionally well if you are young and healthy. Can be a tax shelter. It does not phase out.
3) Consider some charitable contributions. It makes you feel good and gives you a tax break.
4) Keep all of your receipts for sales tax (also does not phase out). If you by a new house or car, this can really be significant.
5) Find a good financial advisor/accountant..



I sympathize with you. I really got beat up myself this year. However, since I work for myself, I was able to get some deductions that werent available to you (and I got to contribute 44K to my retirement). You can try a lot of things to reduce your tax burden but sometimes you just have to pay the piper.... Good luck...
Click to expand...

Thanks Mille!
 
Hockeyguy said:
am out of q and jdsu - still holding AVNX everything else going into chipotle tommorow - IPO goes live. this ought to tie up my money for a while.

mc
Click to expand...

CMG Money doubled! This stock is starting to take off now. I think this will be a ten bagger before residency is over.

Mario
 
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