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<OT> Financial question (interest accumulation)



On Thu, 6 Aug 1998, Brian M Kennedy wrote:

>you invest in a fund that matches the S&P 500.  You make about 15% -- but
>have to pay 28-31% of that earnings back to the IRS (assuming you are not
>retired, as in Stephen's example).

Keep the money in place for 12 months minimum.  Ya only gots ta pay 20%
for such "long-term" gains.  New rule.

>Fees.  If you try to do, as implied above, draw off the fund to pay the
>loan payments, you may find the fees totally absorb your gains.

I agree.  Bad idea.  Let the money sit.

>Fees can
>be levied per transaction (the originaly buy and each of the monthly
>sales), levied on the front-end (when you buy), or levied on the back-end
>(when you sell) based on how long ago you bought.

[other fee stuff deleted]

O.K.  Skip the mutual fund and buy SPY from a discount broker.

>Risk.  All the above is assuming we get another 5 years of unprecedented
>growth in the stock market.  It may happen -- but it is, in fact, not too
>likely.  A large market correction or a couple small ones could easily
>leave you much worse off. 

Hmm.  OK.  How about skip the index fund/SPY stuff and get into some kind
of Dow Dividend approach?  Over the course of 72 months (the duration of
my "ideal" loan, the overall direction of such an investment approach
would almost certainly be "up."  "Up" enough to cover the cost of the
loan, methinks... 

WTF does this have to do with bmrrs?  I forgot, so I'll shutup now.

RM

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