aztec70 Coordinator
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|  | Re: Skin in the game. « Reply #20 on Apr 6, 2012, 5:05pm » | |
Apr 6, 2012, 4:44pm, Yoda wrote: Apr 5, 2012, 7:47pm, aztec70 wrote:
Actually, Yoda, at this point in time one can invest in investment grade CA munis with higher coupon rate than investment grade corporate bonds or Treasurys. No front end skin.
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For bonds with comparable ratings? Why? I thought bond analysis was like everything else -- an evaluation of risk and reward. Assuming the same risk (bond rating), why would anyone invest in corporate bonds if they could get both a higher rate of return with CA bonds AND have that rate be tax free?
Or are Meredith Whitney's opinions on the potential for muni bond defaults -- which aren't generally reflected in the ratings -- carrying more weight with the public than I thought?
Yoda out...
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Yoda, if I knew the answers as to why the market does what, the business school at SDSU would be named the Aztec70 School of Business.
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How selfish soever man may be supposed, there are evidently some principles in his nature which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it. Adam Smith |
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aztec70 Coordinator
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|  | Re: Skin in the game. « Reply #21 on Apr 7, 2012, 1:36pm » | |
Apr 5, 2012, 7:18pm, aztecwin wrote: Apr 5, 2012, 4:24pm, aztec70 wrote:
If I understand your first paragraph as long as I am rich enough to live off capital I have skin in the game. Is that the case? |
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In general, that is true. You might find an example of an investment that not only does not pay taxes but also does not benefit government in general but it would be not mainstream. If you own AT&T in a taxable account you are double taxed. In an IRA type account you are only taxed once. That is the corporate tax in the issue that you are a partial owner. |
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As I expected when I started this thread it is not paying income tax that pisses off the conservatives. It is being poor, and not paying income tax, that pisses off the conservatives.
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How selfish soever man may be supposed, there are evidently some principles in his nature which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it. Adam Smith |
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aztecwin Coordinator
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It is hard to be humble when you are an Aztec
Joined: Jul 2009 Gender: Male  Posts: 9,812 Location: Valley Center/Escondido
|  | Re: Skin in the game. « Reply #22 on Apr 7, 2012, 3:45pm » | |
Apr 7, 2012, 1:36pm, aztec70 wrote: Apr 5, 2012, 7:18pm, aztecwin wrote:
In general, that is true. You might find an example of an investment that not only does not pay taxes but also does not benefit government in general but it would be not mainstream. If you own AT&T in a taxable account you are double taxed. In an IRA type account you are only taxed once. That is the corporate tax in the issue that you are a partial owner. |
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As I expected when I started this thread it is not paying income tax that pisses off the conservatives. It is being poor, and not paying income tax, that pisses off the conservatives. |
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Again you make no sense. Try to stay on topic or preface your remarks with what you think you are talking about.
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It's hard to be nostalgic when you can't remember anything.
Did I get stiffed on a shirt? |
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aztec70 Coordinator
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|  | Re: Skin in the game. « Reply #23 on Apr 7, 2012, 3:49pm » | |
Apr 7, 2012, 3:45pm, aztecwin wrote: Apr 7, 2012, 1:36pm, aztec70 wrote:
As I expected when I started this thread it is not paying income tax that pisses off the conservatives. It is being poor, and not paying income tax, that pisses off the conservatives. |
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Again you make no sense. Try to stay on topic or preface your remarks with what you think you are talking about. |
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Are you drunk already.
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How selfish soever man may be supposed, there are evidently some principles in his nature which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it. Adam Smith |
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aztecwin Coordinator
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It is hard to be humble when you are an Aztec
Joined: Jul 2009 Gender: Male  Posts: 9,812 Location: Valley Center/Escondido
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