Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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| Cost
Basis |
What It Is:
Cost basis refers to the original price of an asset. Cost basis is sometimes
called tax basis.
How It Works/Example:
Let’s assume you purchase 100 shares of XYZ Company stock for $5 per share,
and you pay a $10 commission for the purchase. Your cost basis would be:
(100 x $5) + $10 = $510
Income realized from the asset, including dividends and capital distributions
(even if they are reinvested rather than received in cash) increase the cost
basis. Thus in the above example, if your stock paid a $1-per-share dividend
every year for three years, your basis would increase to:
$510 + (100 x $1 x 3) = $810
Money spent on improvements to an asset (such as certain home improvements) are
added to the asset’s cost basis, and depreciation on the asset is subtracted
from the cost basis.
Why It Matters:
An asset’s cost basis becomes very important when the owner sells the asset.
The difference between the sale price and the cost basis is called a capital
gain (if the sale price is higher than the cost basis) or a capital loss
(if the sale price is lower than the cost basis). Capital gains are generally
only taxable when the investor actually sells the asset. Realized losses can
often offset these gains and thus lower the investor’s potential capital-gains
taxes. The length of time the asset is held, among other things, determines the
tax effect of the gain or loss. Changes in tax rates may also influence an
investor's concern about cost basis.
An asset’s cost basis is usually based on its original purchase price, but
sometimes people inherit assets rather than purchase them. In these cases, the
cost basis of the asset becomes the value of the asset at the time the investor
inherits it (this is called a step-up in the basis).
Often, investors accumulate shares of the same stock at different prices over
time. Because of this, when the investor sells some of the shares, he or she
must identify which shares from the “inventory” were sold in order to
calculate capital gains or losses. In general, investors want to minimize
taxable gains by selling the shares with the highest cost basis first. However,
if the investor cannot identify which shares are which, the IRS requires use of
the first-in-first-out (FIFO) method, meaning that the investor must assume he
or she first sells the shares that are held the longest. These older shares may
not have the highest cost basis of the investor’s inventory of shares, and
thus the method could inflate the investor’s tax bill.
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Who Cares What the Market is Doing When You're Pulling in $28,900 a
Year in Dividends?
With the safe, growing, high-yield picks that Editor Carla Pasternak
recommends every month you don't have to worry whether or not the
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You can't go wrong looking into Carla's recommendations. A year from
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you'll be glad you did. Take the first step and,
read this report now.
Seven "Yield Doubler" Stocks That Are Clobbering The Dow
Just 12 trading days before the market hit its 6,500-point low this
year, the "Yield Doublers" portfolio was born. That was
almost 4 months
ago. The Dow has rebounded +12% since then -- but our seven "Yield
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delivering up to +144.2% gains to boot!
Go here to see why you should add these "Yield Doublers" to your
portfolio today.
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We're
Putting $50,000 on the Line in Our NEW Stock of the Month Portfolio
We're SO confident in this strategy
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Two
Infrastructure Stocks That Are Profiting From Massive Government
Spending
Since the stimulus package was signed into law on
February 17th, these two infrastructure picks have moved up quickly.
One's a worldwide construction company that's already gained +32% to
date. The other makes critical copper, aluminum and fiber optic
cables... and shot up +41% in a matter of just weeks. Both are headed
higher. You’ll find their names in this special report. |
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
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