GLD or DGZ in a Traditional IRA? There's a structural difference between CEF and GLD which makes their tax treatments very different.
As you noted, CEF should qualify as a qualified electing fund (QEF). Basically, it gets treated as a closed end fund that just happens to own precious metals. So it gets the usual cap
gains treatment.
On the other hand, GLD is structured as a grantor trust, meaning that the shares represent proportional ownership of the actual gold (and not shares of a company that happens to have gold as its only asset). Since
you own the gold, any
gains you recognize will be subject to collectibles tax, not cap
gains tax. That's generally 28%, and a good reason not to own it in a taxable account.
http://www.etf.com/sections/features/21952-structure-matters-how-gold-fund-gld-works.html?fullart=1&start=3The last question on that page deals with the taxation of GLD. It also addresses the original question in this thread:
Until 1997 gold was treated as a collectible. You cannot own collectibles in an IRA. Thus you could not own something like GLD in an IRA. Since 1997, gold bullion products are treated as investments, not collectibles, for IRA purposes. So you're allowed to own them in an IRA. (But you still can't own gold jewelry in an IRA.)
2014 estimated (preliminary) year end distributions
American Century opening up alternative funds. Might also be old news, but this fund offers another alt opportunity.Have not found it available @ regular brokerage outlets or load waived yet.Good start since Oct 1 start.
MPS Thomson Reuters Venture
Capital Mutual Fund
A different way to access venture
capitalThe MPS Thomson Reuters Venture
Capital Fund is a passively-managed 1940 Act open-end mutual fund benchmarked to the Thomson Reuters Venture
Capital Index, an index designed to track the performance of the U.S. venture
capital industry.
http://mpsfunds.comhttp://quotes.morningstar.com/fund/f?t=MAVCX®ion=usa&culture=en-US
2014 estimated (preliminary) year end distributions @ronUnfortunately, mutual fund distributions are no windfall. In an IRA, fund distributions are neutral because the fund's NAV drops by the amount that is distributed (a $20 NAV turns into $5 cash and $15 NAV or if reinvested into $5 in new shares and $15 NAV). There are a number of sites that explain this concept well. You may want to check out:
https://americanfunds.com/funds/effect-capital-gain.html
2014 estimated (preliminary) year end distributions I hope this is an appropriate addition to this thread... (not generally a good start to any message, I realize).
This year looks like it will be a record year for
capital gains distributions. After years of thinking about it, I've put together a free website to serve as a one-stop shop for gathering
capital gains estimates. My database has 250 firms and already has links to nearly 90 firms' estimates. The information I share is less valuable to the folks that are reviewing this thread, but I do think the site is more accessible and I do provide additonal information. (I'm currently posting links to preliminary information or even 2013 links if that's all that is available.)
The site is
CapGainsValet.com. Although the site is free, like MFO, I am asking for financial support. In my case, I'm asking for donations to my favorite charity.
This is the first place I am notifying about the site. I could not think of a better group to reach out to before I try to spread the word. Please let me know your thoughts and recommendations.
Columbia Funds A side note for those who care (perhaps too much) about who got caught in the 2003ish mutual fund scandal.
Here's a
settlement notice from Columbia that pays shareholders of (among other funds) Acorn International, Acorn Select, and funds coming from Stein Roe, Newport, Wanger, and others whose lineage I don't care to track down.
I do recall that one of the more egregious offenders was
Nations Bank (which later got
merged into Columbia Funds).
I'm not going to sort out which funds were involved; just point out that the scandal appears to have come into present day Columbia from two distinct lines - Nations Bank and Fleet Boston (which bought Liberty which bought Acorn among others). So there were scoundrels on both sides of the "family".
2014 estimated (preliminary) year end distributions
With Dollar On A Tear, Gold And Silver Rout Far From Over FYI:
Gold's rout may be far from over, with many analysts and traders surveyed by Reuters predicting prices could fall to $1,000 per ounce by the end of the year, the first time at that level since 2009, even after Friday's 3-percent short-covering rally.
A rush of physical buying in the past week - from jewelry in Shanghai to coins in Germany - may prove to be a dead-cat bounce that is too feeble to offset a broader trend of selling by investors betting on further
gains in the dollar, U.S. equities and an improving U.S. economy, according to the survey of more than two dozen analysts and traders.
Regards,
Ted
http://www.reuters.com/assets/print?aid=USL1N0SX27420141109
The World’s Best Investment Strategy That Nobody Seems To Like
Eaton Vance Adds Two Funds To Liquid Alternative Offerings FYI: Eaton Vance launched a pair of new liquid alts mutual funds on November 3: the Eaton Vance Bond Fund II (EBTIX) and the Eaton Vance Global Macro
Capital Opportunities Fund (EICOX). These new funds join seven other liquid alts mutual funds listed at Eaton Vance’s website, including three absolute-return funds and four “other” alternatives
Regards,
Ted
http://dailyalts.com/eaton-vance-adds-two-funds-liquid-alternative-offerings/
Fairholme and Sears Update FAAFX up 6.6% today.
c
@Charles, I wonder if the FAAFX portfolio holdings or weightings have changed?
I sketched out the math and can't see how it went up 6.58% today.
Should have gone up 2.63% just as a result of Sears alone....and I can see an increase of to a total of roughly 3% for FAAFX, as CHK, LE, and HOFD all had nice
gains.
Don't see other winners sufficient to propel the fund to a 6.58%, unless the weighting in SHLD is a lot higher than the stated 8.48%
My guess is that the weighting in SHLD could be much higher than stated.
Any ideas?
Berkowitz was buying Sears over the last couple of weeks and that is probably not reflected - that may have contributed.
Fairholme and Sears Update FAAFX up 6.6% today.
c
@Charles, I wonder if the FAAFX portfolio holdings or weightings have changed?
I sketched out the math and can't see how it went up 6.58% today.
Should have gone up 2.63% just as a result of Sears alone....and I can see an increase of to a total of roughly 3% for FAAFX, as CHK, LE, and HOFD all had nice
gains.
Don't see other winners sufficient to propel the fund to a 6.58%, unless the weighting in SHLD is a lot higher than the stated 8.48%
My guess is that the weighting in SHLD could be much higher than stated.
Any ideas?
