best kitchen and bath buffalo grove master bath remodel winthrop harbor crown remodeling mundelein dream kitchen and bath hainesville adding onto a brick home lincolnshire .. Chicago Drug testing

Investment Capital Gains

Have you bought any mutual funds this year or late last year while the market was doing its skyrocket thing? Last year it was hard to lose money. This year it has been easy.

You should be calling your mutual fund (they all have 800 numbers) to find out if and when they plan to pay their capital gains and dividends. You might say to yourself, they won't be paying anything this year because the fund is selling for less now than it did at the beginning of the year. Think again. It is very probable that the mutual fund manager took profits on many high flyers that he bought cheap last year. According to the way funds are set up those profits are taxable to holders of the mutual fund and not to the fund itself.

It is possible you bought a fund at $40 per share that is now selling at $30 per share and be hit with a 25% capital gains distribution of $10. On paper you now have a $10 per share loss and a tax bill based on the $10 per share distribution. That is adding injury to insult.

With this as a possible scenario it might be prudent to sell your fund for less than you paid for it. You should work the numbers with your accountant to see if this might reduce your tax bill. But you have to do it now. You can't wait until after the mutual fund declares its capital gains distribution. This is especially true if you have purchased any high tech or international funds during the past year. You can carry losses forward to next year to offset against profits and distributions next year.

The greatest numbers of mutual funds declare these distributions near the end of the year, usually starting in November with most of them in December. The rumors I hear are that the distributions will be early this year because of the poor performance of the majority of funds.

This applies to everyone who does not have a tax shelter of some kind such as a 401k, IRA, SEP or other similar investment vehicle.

One piece of advice I want you to heed. Don't buy any mutual funds now because they are "cheap". Wait until after they declare their capital gains and dividend distributions. You could be whacked with a big tax bill.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at and discover why he's the man that Wall Street does not want you to know.

Copyright 2005; 1-888-345-7870

In The News:

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Will the Stock Market be Lower in October?

The stock market often closes a week in the middle... Read More

Keep Your Profits

It looks like we have now entered a new bull... Read More

Trading For A Living

How many times have you said to yourself, "I'd like... Read More

Gurgle Gurgle

Caught in a whirlpool and being sucked under. No life... Read More


It is difficult to make money in a bull market,... Read More

Stock Options Trading Strategies - Lean

Professional stock options traders use the term lean to refer... Read More

Stock Trading Diversification

This is the continuing story of our two imaginary traders,... Read More

Stock Analysis

I receive emails from Morningstar. This company provides statistics and... Read More

Investing in Trash Company Stocks

Refuse is a serious issue in any society, about as... Read More

Stock Trading Success

The ABC's of Stock Trading SuccessStock trading success...why is it... Read More

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen... Read More

Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others

When it comes to stock market trading it PAYS to... Read More

Hedge Funds

You read and hear a lot about hedge funds. Unfortunately,... Read More

Dont Buy Stocks based on P/E Ratio alone

I use the P/E ratio as a secondary indicator for... Read More

Why Stock Is More Risky Than Options!

You probably have been told that options are risky. Even... Read More


What does it take to be a stock trader? It... Read More

Chart Reading

As an investor you will want to check out any... Read More

Analyst Reports

When you become interested in a stock or mutual fund... Read More

Emotional Involvement

I'll bet with almost anyone that has stocks or mutual... Read More

Dont Buy Worldcom! A Guide to Wise Bottom Fishing

Over the past few months, several investment professionals have brought... Read More

Online Broker Trade History Not Doing the Job

Let me start by saying that...Most online brokers do not... Read More

How Much Information Do You Need?

You have decided to buy some stock or mutual funds,... Read More

What is Involved in Peak Performance Trading?

There is so much involved in developing peak performance, that... Read More

garage lighting fixtures industrial fluorescent lighting fixtures Pete's produce ..
garage lighting fixtures industrial fluorescent lighting fixtures Pete's produce ..