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The Market is down & now is the time to buy value

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Contributed by: Jerry Kemp on 7/28/2007

Buy value stocks at bargain prices and do it now. You will get more shares which will give you more income from the dividends. Now is the time to buy.

Owning your own customized portfolio has some real tax advantages. Former SEC commissioner Steve Wallman recently gave this statement when he was asked "what are the tax advantages of trading portfolios over ETFs and mutual funds."

An investor wants to take out $11,000 to buy a car. With the fund or the ETF, you will have to pay a short-term capital gains tax on $1,000 (the $11,000 proceeds less the $10,000 basis in that portion of the investment).

In the portfolio, however, if you assume that a dozen securities (originally worth $12,000) went down in value and are now worth together the $11,000 even though some went up in value (and are worth, collectively, $44,000).

With the portfolio you can sell the ones that are losers and take a capital loss of $1,000 that you can use to offset taxes on other income.

Pick your own stocks and sell only when that is best for you.

We believe in buying and holding in most situations.

www.perpetualmoneysolutions.com

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CONTRIBUTOR INFO

Jerry Kemp

Colorado Springs , CO

Jerry Kemp has posted 64 stories and 1 comment since joining on 5/5/2007. Jerry Kemp 's average story rating is 1.67.

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