Wealth Inequality (Read 403 times)


HobbyJogger & HobbyRacer

     

    ... I would not be surprised if pressures to curtail spending and reduce costs pull the whole sector behind the market.

     

    Let's hope so.

    It's a 5k. It hurt like hell...then I tried to pick it up. The end.

    DoppleBock


      I used to monitor my tax liability compared to what I pay to make sure I owed money, but not too much to get penalties.  Why give the government a free loan?  But then I got lazy and tried to figure out a spot where between my Federal and State tax returns I break even.  I usually pay a little to one and get back a little form the other.

      http://a-big-horse.blogspot.com/ 

      2013 Goals ~ Mar < 3:00, 5M < 29, 10k < 35  

       

        I used to monitor my tax liability compared to what I pay to make sure I owed money, but not too much to get penalties.  Why give the government a free loan?  But then I got lazy and tried to figure out a spot where between my Federal and State tax returns I break even.  I usually pay a little to one and get back a little form the other.

         

        What are state taxes? Smile

        Since 1994, I haven't paid state taxes....

        (Yes, I'm kidding)

        2014 Goals:

        #1: Do what I can do. <DOING>

        #2: 365 Hours training <NOPE, INJURED>

         

          I sort of see your point about the distribution moving rapidly toward the very rich, but isn't that a relative measure?  Are Americans generally better off than they were 15 years ago, or worse off? I think the definition of poverty in America wouldn't really be credible in most places besides America (no data to prove this, I'm sure I'll be corrected if I'm wrong.)

           

          Tax policy is something I think could stand a change.  We live in a culture where "tax break" seems like a gift, when it's really a situation where the government takes less of the money YOU earned.  If there are more tax breaks for the really rich, and more (for lack of a better term) entitlement programs and credits for those below the poverty level, doesn't that by default pull both ways which would automatically mean the middle class would shrink?

           

          And yeah, the rich don't hate themselves, but I do think it's funny that people like Warren Buffet say that he should pay more taxes, yet hires tax attorneys to minimize his taxes.  Isn't there a way for all the rich people who feel they don't pay enough to contribute more?

           

          *I'm not an economist. I'm just someone with an opinion on the internet, but I'm an expert on my opinion.

           

           

          Based off of what 5,000 randomly polled Americans across the political spectrum think is a healthy distribution curve for a thriving economy. The fact is wealth distribution has been rapidly getting more skewed toward the very rich for more than a decade now, and it is in large part the result of tax policies. The richest 1% didn't suddenly become that much more talented than you (and everyone else) over the last 15 years--they got tax breaks.

           

          Pointing out that it is not a good situation for the long term success of our economy to have more and more of the nation's wealth concentrated with the top 1% while at the same time the middle class shrinks and the percentage of people below the poverty line grows is not a bunch of "jealous, hate the rich whining." Particularly since plenty of rich people would agree this is not a sustainable situation--I doubt they are jealous of or hate themselves.

            On the mutuals, I'm pretty diversified overall, but did focus on a couple sectors.  When Banking was being rescued by the gub'ment and many bank shares were cents on the dollar, seemed a good thing to take a focused stab :-)  I've got other more diversified funds, but those 2 were my focused ones. ---I also agree that eventually the cost of healthcare must be reeled in, but I see no politician strong enough to do it.  They all seem to be expanding it... Dem's with Obamacare, Repubs with "prescription drug benefits".  I am weary that any politician will really take on the issue of truly reducing costs.   Well, save Chris Christie.  If he runs, gets nominated and beats Hillary in 2016 (grin), then I will be glad he won, but I will probably move completely out of healthcare funds :-)

             

            What are state taxes? Smile   Since 1994, I haven't paid state taxes....

            (Yes, I'm kidding)

             

            Since 1994, I haven't paid state taxes.  (And no, I am not kidding.) :-)  Just join the Military, and in exchange for deploying for long periods of time to foreign countries, some of the states will put you as exempt for  state taxes.   ---However, if I had it all to do again, I'd probably just rather stay home with my family and pay the d@mn state taxes.... Approve 

            The Plan (big parts)→  /// April:  Hampton, VA 24 Hour Run for Cancer (PR 80 Miles) ///  Nov:  New York Marathon  ///  Dec:  Seashore State Park 50K  ///  ∞


            A Saucy Wench

               

              What are state taxes? Smile

              Since 1994, I haven't paid state taxes....

              (Yes, I'm kidding)

               

              I dont pay sales tax.

              I have become Death, the destroyer of electronic gadgets

               

              "When I got too tired to run anymore I just pretended I wasnt tired and kept running anyway" - dd, age 7

                 

                I dont pay sales tax.

                 

                --NH by chance?

                My wife is a VT'er right next door and while NH does not have any sales tax, you'll still crap a brick when the property tax bill comes due. :-)

                The Plan (big parts)→  /// April:  Hampton, VA 24 Hour Run for Cancer (PR 80 Miles) ///  Nov:  New York Marathon  ///  Dec:  Seashore State Park 50K  ///  ∞

                  Anyone interested in talking stocks/mutual funds and what they personally would do to "invest as the top 1% do" and try to improve in that manner?

                   

                  I can't speak for how the top 1% invest - but I can speak for how I am invested/investing - I consider my choices not too shabby as I've returned (on average) north of 40% every year for the last 5 years.

                   

                  Some thoughts / Stuff on my radar

                  I don't really have much love for mutual funds for the same reason as spaniel.

                   

                  I'm not currently invested in banking, but Warren Buffet has owned banking stocks for a long time and is building his positions in several of them. I've only recently started looking into the sector for opportunities.

                   

                  Speaking of Buffet, I'm a big fan of Berkshire Hathaway and have owned some for a while. Not saying the time to buy is now, but it is certainly worth looking at on the dips.

                   

                  Locally, I know several folks involved in supplying the building trades and it's exploding. My next area of research is residential and commercial real estate/construction and the businesses that supply the builders.

                   

                  I have two friends at work that are invested in viaticals (buying people's life insurance policies pre-death). This is nothing new, and is a bit morbid for some, but 12-15% returns aren't anything to sneeze at. I'm not invested in this and don't plan to unless my personal stock picking ability goes south.

                   

                  Stuff in my portfolio now

                  I saw Apple's recent stock price decline as a good time to load up.

                   

                  Tech wise, I like to play the "buy near $9 and sell near $12" game with Pandora. If I had a time machine, I'd tell you about Netflix, but I think it may be too late for that, although some people don't think so.

                   

                  Almost half of my stock portfolio is invested in 3D printing (aka additive manufacturing stocks). I think this whole sector is game changing and has a long way to go and grow. One day, just like with inkjets and/or laser printers - every household will have a 3D printer. I'm invested in 3D Systems, Stratasys, and Dassault Systemes for the long term. I'm also looking at some other smaller companies like Organovo (these guys are working on additively printing body parts) and ExOne (recent IPO - waiting for better price / news / etc).

                   

                  I'm usually invested in several different resources like coal (mmm, love coal), uranium, metals, but at the moment, I'm only in with McEwen Mining.

                   

                  Regarding a good source of stock picks, I really like the Motley Fool Stock Advisor. They have some great advice on good choices for some core holdings. I think it was like $100 for a year (I forget) - dirt cheap considering the gains I've made on their advice.

                   

                  While I've been reasonably successful, I am not a pro trader, nor did I stay in a Holiday Inn Express last night. Please do your research. A good friend of mine calls the stock market, "the big casino".

                  When it’s all said and done, will you have said more than you’ve done?


                  A Saucy Wench

                     

                    --NH by chance?

                    My wife is a VT'er right next door and while NH does not have any sales tax, you'll still crap a brick when the property tax bill comes due. :-)

                     

                    Oregon.  9% income tax and property taxes around $14 per thousand.

                    I have become Death, the destroyer of electronic gadgets

                     

                    "When I got too tired to run anymore I just pretended I wasnt tired and kept running anyway" - dd, age 7

                       

                      --NH by chance?

                      My wife is a VT'er right next door and while NH does not have any sales tax, you'll still crap a brick when the property tax bill comes due. :-)

                       

                      I live in NH and our property taxes are the same as they were in Canada. Our bill from Uncle Sam is much lower, though.


                      Feeling the growl again

                         

                        I can't speak for how the top 1% invest - but I can speak for how I am invested/investing - I consider my choices not too shabby as I've returned (on average) north of 40% every year for the last 5 years.

                         

                        Some thoughts / Stuff on my radar

                        I don't really have much love for mutual funds for the same reason as spaniel.

                         

                         

                        Actually I think you took it the opposite of what I meant.  I meant that most investors would be best off simply buying broadly diversified mutual funds or index funds rather than trying to pick stocks.   Most people who pick stocks do not beat the market.

                         

                        It looks like you have been doing a pretty good job of it.  I hope you can keep it up in the long term.  That would put you in a select group.

                         

                        At some point I plan on allocating some funds to try on individual stocks, but I haven't got around to that yet.  I made some great picks years back but at the time had no money to act on them.  Smile

                        "If you want to be a bad a$s, then do what a bad a$s does.  There's your pep talk for today.  Go Run." -- Slo_Hand

                         


                        A Saucy Wench

                           

                          Actually I think you took it the opposite of what I meant.  I meant that most investors would be best off simply buying broadly diversified mutual funds or index funds rather than trying to pick stocks.   Most people who pick stocks do not beat the market.

                           

                          It looks like you have been doing a pretty good job of it.  I hope you can keep it up in the long term.  That would put you in a select group.

                           

                          At some point I plan on allocating some funds to try on individual stocks, but I haven't got around to that yet.  I made some great picks years back but at the time had no money to act on them.  Smile

                          Agree

                           

                          To make a decent pick takes a fair amount of research.  And if you are going speculative it takes monitoring.  Which is what the 1% do, if they arent Buffet, they hire a real money manager.   I did individual stock picking for a while and I was doing ok but it takes a lot more money to be well diversified and if it isnt your full time job, you can miss some things.   I'll skew one way or the other to be speculative but getting too heavily in one sector is a gamble.

                           

                          No load, no transaction fee, low expense ratio mutual funds.  I diversify across capitalization, sectors AND fund managing houses.  Much as there are some fund families I consistently like better, I try not to have everything with one group.   Its the sort of thing I can monitor periodically instead of constantly like when I was all individual stocks.

                           

                          Now if I could hire someone to do everything else so that all I had to do was watch my money...like the 1% then maybe I could invest like the 1%

                          I have become Death, the destroyer of electronic gadgets

                           

                          "When I got too tired to run anymore I just pretended I wasnt tired and kept running anyway" - dd, age 7

                          DoppleBock


                            What is crapping a brick? We pay @ $20-$30 per $1,000 in WI with Neenah @ $25 per $1,000 of valuation of property.

                             

                             

                             

                            --NH by chance?

                            My wife is a VT'er right next door and while NH does not have any sales tax, you'll still crap a brick when the property tax bill comes due. :-)

                            http://a-big-horse.blogspot.com/ 

                            2013 Goals ~ Mar < 3:00, 5M < 29, 10k < 35  

                             

                              Just like anything else, some folks are good at picking stocks and some folks aren't.

                               

                              I'm sure I have had some pretty good luck lately, but I think that a personal investor has a big advantage over an institutional investor in a lot of ways.  I follow just a very focused group of 4 or 5 stocks usually.  I look at them daily and know what to expect for that stock.  I know when the market overreacts to earnings reports and when it doesn't.  I usually am writing covered calls which in it's own way forces me to do some occasional profit taking when a stock runs up quickly on a short term basis.  You also can stay out of the market if you just don't see something that you want to buy, where institutional investors pretty much have to buy and invest all the time, they can't sit on the sideline with 50% of their money in cash until a buying opportunity shows up.

                               

                              The stocks I'm in right now are HFC, MDR, IPI and DXCM.  My big home runs were the fertilizer industry in 2008 and 2009 and the Oil Refining and Services sector in 2012.  Inception to date return is only 18.7% because that includes the little correction that we had back in 2007.

                               

                              MTA - P.S. - This is my personal brokerage account, not my 401K.  I'm invested in a highly diversified portfolio in my 401K.  This allows me to take a little more risk with my personal brokerage account.

                               

                              MTA = I went back and deleted the screenshot of my account, probably not the smartest thing to do posting something with my account information on it even if I blacked it out.

                              Age: 46 Weight: 200 Height: 6'2" (Goal weight 195)

                              Current PR's:  Mara 3:48:09; HM 1:43:26; 10K 43:59; 5K 21:27