Archive for October 2011
Is the Greek haircut really a default?
Posted by: Michael Zhuang on: October 28, 2011
This morning, I woke up to news that the Europeans, Germans mostly, have finally hammered out a deal with Greece, which now only needs to pay 50% of what it owes to private lenders (mostly German banks). German Chancellor Angela Merkel called this a 50% “haircut.” World markets cheered the news by rallying 2% to [...]
10-Year Return Perspective of Small Cap Value
Posted by: Michael Zhuang on: October 26, 2011
Many investors are puzzled by the underperformance of small cap value since May of this year. They ask: “Is it worth being in an asset class that can’t do well in bad times?” To answer their question, I did a 10-year rolling return comparison between the Fama/French Small Cap Value (SCV) and the S&P 500 [...]
Year-End Tax-Planning Tips for Businesses & Business Owners
Posted by: Michael Zhuang on: October 22, 2011
Businesses should consider making expenditures that qualify for the business property expensing option. For tax years beginning in 2011, the expensing limit is $500,000 and the investment ceiling limit is $2,000,000. And a limited amount of expensing may be claimed for qualified real property. However, unless Congress changes the rules, for taxyears beginning in 2012, the dollar limit [...]
2011 Year-End Tax Planning Tips for Individuals
Posted by: Michael Zhuang on: October 19, 2011
Tax Loss Harvesting Realize losses on investment without substantially changing your portfolio positions; for instance, selling Vanguard 500 Index and buying Vanguard Total Stock Market Index. Roth Conversion If you do a Roth conversion, the IRA account will become a multigenerational tax shelter. Do this only if you have sufficient cash to pay taxes now. [...]
Why I Am Bullish About The Market?
Posted by: Michael Zhuang on: October 3, 2011
What happened to the market in August and September? Between July and the end of September, markets lost between 13.5% (Dow) and 27% (Emerging markets) depending on which market you are looking at. I pored through economic data and could not see any marked deterioration in the economy. In fact, on balance, I see continued [...]
IRS Settlement Offer for Misclassification of Employees as Contractors
Posted by: Michael Zhuang on: October 3, 2011
[Guest post by Jeremy Bendler] IRS has launched a new voluntary compliance program that allows employers to prospectively reclassify-as employees-those workers they have erroneously treated as independent contractors. The program carries generous settlement terms and provides audit relief for previous years. Background. Whether a worker is an independent contractor or employee generally is determined by [...]
Top 10 Wealth Management Posts in September
Posted by: Michael Zhuang on: October 1, 2011
10. How Investors Lost Monday: Evidence from Mutual Fund Flows 9. Irrevocable Life Insurance Trust 8. Recession Stock Market Performance Revisited 7. America’s Top Financial Advisors: How Are They Made? 6. The 2011 Estate Tax Changes 5. Variable Annuity Fees You Don’t Know You Are Paying 4. Recession and Stock Market Performance 3. Why Doctors [...]
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