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Again, not panicking just watching. Some ROC is okay, some destructive ROC is tolerable ... I just want to poke around more before diving back into CEFs.
”a sudden 60% in ROC after a long period of relatively little was something worth noting.”
Yeah - Agree!
Cohen & Steers where I’ve had a couple investments plays the ROC game with at least some of their funds. It’s covered by prospectus and amounts to a tax-dodge for those investing in taxable accounts (less reportable income). Bothered me at first, but in this instance it does not / did not appear to be destructive to the fund’s performance - at least to a significant degree.
My K-1 divs are tax free, too. Should it be that way? I've always had questions about the ins-and-outs of the tax code. Arcane, complicated, silly.
If you refer to MLP distributions, they're tax-deferred since they reduce your basis over time. Once your basis reaches 0, they get taxed at regular dividend rates -- which is partly why some buy them and *never* sell them, and imo a pretty good deal, especially if you are DRIPPING them.
Yes. Energy Transfer. Ticker ET. Obviously, you know more than I do about that.
Once my cost basis reaches zero, the divs are taxed? Does that mean, in other words, when my gain is equal to 100%? If the value doubles, the shares have paid for themselves, eh? Sorry if that's a silly question. My gain is already approx. +60% currently. I'm technically not DRIP-ing them, because Chucky takes their sweet time to actually reinvest the div, and often not at a favorable share price. But I often reinvest the profit on my own. I like to use limit orders.
What @rforno says about the “dividends” is true. My father-in-law received physical checks from such energy partnerships as well as regular stock dividends. Family members recall him running down to the mailbox just after mail delivery to grab his checks, lest someone pilfer the mail. Those were the days preceding electronic trading and, most importantly, electronic brokerage record keeping. Upon his demise, it was necessary to report to the green-eyeshade types the current value, and the cost basis, for each holding. It turned out that the filing system was a pile of Manila file folders with a record, in pencil, of each periodic payout. Since each payout from a LMP reduces the cost basis of the security, up to 100%, the family paid for more than a little forensic accounting and lawyering. Payment of income taxes was obviously delayed, at least from the perspective of the deceased, but someone else got stuck with the chore of reporting to the IRS. Taxes delayed ain’t necessarily good for everyone.
Last week I sold out of PONAX and WCPNX...leaving OSTIX, JPIE, NEAR, PDI and a handful of muni's in the taxable account as the current bond positions. The fluctuation of interest rates is unsettling.
Osterweis is having their quarterly webinar to discuss OSTIX this afternoon at 1:00PM, and depending on how that goes, I just may allocate to them the totals from recent sales. The performance of OSTIX has been very solid despite the noise.
Do have GEV shareholders in the forum? I sold some shares $50 below the current price thinking it is way overpriced. If any one has an insight into its valuation, please share.
What @rforno says about the “dividends” is true. My father-in-law received physical checks from such energy partnerships as well as regular stock dividends. Family members recall him running down to the mailbox just after mail delivery to grab his checks, lest someone pilfer the mail. Those were the days preceding electronic trading and, most importantly, electronic brokerage record keeping. Upon his demise, it was necessary to report to the green-eyeshade types the current value, and the cost basis, for each holding. It turned out that the filing system was a pile of Manila file folders with a record, in pencil, of each periodic payout. Since each payout from a LMP reduces the cost basis of the security, up to 100%, the family paid for more than a little forensic accounting and lawyering. Payment of income taxes was obviously delayed, at least from the perspective of the deceased, but someone else got stuck with the chore of reporting to the IRS. Taxes delayed ain’t necessarily good for everyone.
Oh, dear. Quite a story. As for inheriting MLP units: we always use the same tax professional, anyhow. She ought to be able to provide any IRS-required numbers without any trouble, eh? The difference between true dividends and return of capital takes a bit of thinking-through.
Comments
https://investor.vcm.com/products/mutual-funds/mutual-funds-list
https://api-funds.paralel.com/download_resource/?id=6372&ticker=UTG
DNP is also spitting out huge ROC in December - 83% of current distro.
https://www.dpimc.com/assets/files/jd/dnp_19anotice-1-9-25.pdf
Again, not panicking just watching. Some ROC is okay, some destructive ROC is tolerable ... I just want to poke around more before diving back into CEFs.
Yeah - Agree!
Cohen & Steers where I’ve had a couple investments plays the ROC game with at least some of their funds. It’s covered by prospectus and amounts to a tax-dodge for those investing in taxable accounts (less reportable income). Bothered me at first, but in this instance it does not / did not appear to be destructive to the fund’s performance - at least to a significant degree.
Once my cost basis reaches zero, the divs are taxed? Does that mean, in other words, when my gain is equal to 100%? If the value doubles, the shares have paid for themselves, eh? Sorry if that's a silly question. My gain is already approx. +60% currently. I'm technically not DRIP-ing them, because Chucky takes their sweet time to actually reinvest the div, and often not at a favorable share price. But I often reinvest the profit on my own. I like to use limit orders.
Osterweis is having their quarterly webinar to discuss OSTIX this afternoon at 1:00PM, and depending on how that goes, I just may allocate to them the totals from recent sales. The performance of OSTIX has been very solid despite the noise.
USAA mutual funds moved (were sold?) to Victory.
USAA brokerage accounts (non USAA fund holdings) were transferred (sold) to Schwab.
I moved out of USAA funds during this time frame.
USAAX, USNQX, USAUX seem to have great performance at reasonable ERs (Aggressive)
USBLX compares well with VTMFX (tax managed balance funds)
Do have GEV shareholders in the forum? I sold some shares $50 below the current price thinking it is way overpriced. If any one has an insight into its valuation, please share.