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HarryCarysGhost (99.68)

R.L. investing stories.

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November 06, 2010 – Comments (27) | RELATED TICKERS: JGLD

What will follow is a tale from real life, the names have been changed to protect the not so innocent.

In my post http://caps.fool.com/Blogs/tale-of-a-lost-soul/394089 I introduced you to my co-worker Pancho Villa.

Last Thursday we had some down time, waiting for a Boom.

So this is the convesation-

Pancho- Harry! if I had $1,000 to invest could I turn it into a million?

Me- No, dude the markets up so there's not great deals floating about anymore, 2008 was the buying opportunity

Pancho- So what should I invest my thousand dollars in for my kids college fund.

That's when I got tripped up,

All I could tell him was I'm going with Silver, and Spicy Pickle.

I honestly could not tell him a safe bet.

 

 

 

 

 

27 Comments – Post Your Own

#1) On November 06, 2010 at 8:56 PM, dragonLZ (99.38) wrote:

Harry! if I had $1,000 to invest could I turn it into a million?

Why didn't you tell him: No problem, all you need is 10 doubles... :)

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#2) On November 06, 2010 at 9:15 PM, ikkyu2 (99.15) wrote:

You don't need a safe bet for $1000 for a kid's college fund, you need a high rate of return. $1000 compounded annually even at 4% isn't going to pay for 1 semester of college for a kid of any age greater than 0 years.

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#3) On November 06, 2010 at 9:53 PM, truthisntstupid (83.28) wrote:

You wouldn't hold out on us wouldja, Harry?

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#4) On November 06, 2010 at 11:12 PM, HarryCarysGhost (99.68) wrote:

Dragon-

I did mention The Ten Doubles Challenge   and the amount of cohones it would take to pull that off.

The joke was "it was going great until that ninth trade" ;)

ikkyu2  Yes!!! you are correct sir.

Hi truth, I did hold out a bit of the story, my lunch was ready so you can't hold fault for that : )

I did recommend MLP'S for the div, but he did'nt want to deal with the extra tax form. (whatever!)

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#5) On November 06, 2010 at 11:30 PM, truthisntstupid (83.28) wrote:

Harry

How bad are the extra hoops you have to jump through with MLPs?

I've read comments from some who say thay aren't that bad, and heard horror stories from others. 

I know last year I had to file long form and couldn't fit everything in the space provided on Schedule D.  I had to draw another schedule D by hand to finish my taxes!  I was amazed when it was accepted without them sending it back telling me what I did wrong and what I needed to do to fix it.

(I haven't paid anyone to do my taxes in probably thirty years.  Been doing my own all that time.)

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#6) On November 07, 2010 at 12:09 AM, topsecret10 (< 20) wrote:

  Bought 50,000 shares of pickle @ 6.5 cents....    Let It Ride !!  :)    TS

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#7) On November 07, 2010 at 12:15 AM, topsecret10 (< 20) wrote:

  They are still adding quality Individuals to their management team. Could end up being quite a story. I bought a stock called Int'l Remote Imaging a long time ago (IRIS)  @ 12.5 cents and sold some of It at $22.00 per share. It CAN happen....   :)    TS 

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#8) On November 07, 2010 at 12:32 AM, HarryCarysGhost (99.68) wrote:

Truth, it's just one form. I can't remember the official # but I think a  "k" was involved.

"I've got a guy" who does my taxes and I've seen him deal with MLP'S in 30 seconds.

I used to do my taxes myself, turned out I was shorting myself $400 a year.

My cost was $125, so I'm up $275.

I'm not an accountant but MLP'S seem like no problem at all.

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#9) On November 07, 2010 at 12:39 AM, HarryCarysGhost (99.68) wrote:

TS- Yes we can....:)

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#10) On November 07, 2010 at 1:33 AM, Valyooo (99.41) wrote:

Mlp's tax form is called a "k-1"

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#11) On November 07, 2010 at 1:34 PM, RonChapmanJr (74.46) wrote:

Tell him not to waste money saving for college.  Either the price of college will come in line with reality, or the whole system will become a useless relic.  Take the $1000 and figure out a business than can be started that his kid can take over one day. 

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#12) On November 07, 2010 at 2:49 PM, blesto (31.85) wrote:

Sorry to interupt Harry, but they were talkin' about you a couple of days ago here;

http://boards.fool.com/thanks-for-sharing-wheres-that-guy-who-was-28869942.aspx

And what the heck, I speculated on a few shares of Spicey Pickle.

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#13) On November 07, 2010 at 4:31 PM, truthisntstupid (83.28) wrote:

Valyooo

Thanks!  In a comment following a MF article I read, the commenter was saying you had to be careful with some of them.  Something about some kinds of MLPs doing business in several states might cause you to have file a state tax return in each state in operated in.

Anyone know anything about that?

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#14) On November 07, 2010 at 4:33 PM, truthisntstupid (83.28) wrote:

"state it operated in."

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#15) On November 07, 2010 at 6:06 PM, HarryCarysGhost (99.68) wrote:

RonChapmanJr

My advice, was get a vasectemy.

He just had his third kid, And I don't think he's a buissiness owner.

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#16) On November 07, 2010 at 6:22 PM, HarryCarysGhost (99.68) wrote:

Truth, I've never had a problem with MLP's.

If I fill out the 1-K it's all good

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#17) On November 07, 2010 at 6:29 PM, truthisntstupid (83.28) wrote:

HarryCarysGhost

Thanks.  I've thought about buying shares in one or two of them that had DSPPs. BPL; can't remember the other one.

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#18) On November 07, 2010 at 6:51 PM, HarryCarysGhost (99.68) wrote:

blesto,

Great, one month in and I already have a bad name....: )

I can here the ignore buttons clicking.......:)

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#19) On November 07, 2010 at 7:33 PM, blesto (31.85) wrote:

Nah, you got it wrong. I think some were looking for your input, since that thread started about a Fantasy team.

As for MLP's here's a Primer and a good article from Investing Answers.

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#20) On November 07, 2010 at 9:51 PM, HarryCarysGhost (99.68) wrote:

Nah, you got it wrong. I think some were looking for your input, since that thread started about a Fantasy team.

Guess I never looked at it that way.

With MLP's I've made quite a bit o' profit and the taxes were reasonable.

blesto, do you have a link for the easiest way to learn Morse code?

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#21) On November 07, 2010 at 11:01 PM, HarryCarysGhost (99.68) wrote:

Thanks.  I've thought about buying shares in one or two of them that had DSPPs. BPL; can't remember the other one.

Truth, I don't know what those acronyms mean.

If you pick a MLP will you go with an oil ,or a nat gas?

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#22) On November 08, 2010 at 4:19 AM, blesto (31.85) wrote:

.--. .-. .- -.-. - .. -.-. . /  .--. .-. .- -.-. - .. -.-. . /  .--. .-. .- -.-. - .. -.-. . .-.-.- /  .--. .-.. ..- ... /  .. /  -.-. .... . .- - /  .- /  .-.. .. - - .-.. . /  .-- .. - .... /  - .... .. ... /  - .-. .- -. ... .-.. .- - --- .-. .-.-.- 

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#23) On November 08, 2010 at 7:17 AM, RLAprof (30.33) wrote:

If he is investing for his kid's college fund, this will be going into a 529, right? I was under the impression that the 529 provided tax advantages that eliminate the worries about k-1 forms. Am I correct on this? For this same reason, MLPs are perfect for a Roth.

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#24) On November 08, 2010 at 7:55 AM, truthisntstupid (83.28) wrote:

DSPP - Direct Stock Purchase Plan

BPL - Buckeye Partners L.P.

Oil or Natgas?  I don't know, I need to learn more about them.

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#25) On November 08, 2010 at 10:57 PM, HarryCarysGhost (99.68) wrote:

-... .-.. . ... - --- /  - .... .- -. -.- ... /  -- .- -. /  - .... . /  .-.. .. -. -.- /  .. ... /  .- -.. -.. . -.. /  - --- --- /  -- -.-- /  ..-. .- ...- --- .-. .. - . ... 

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#26) On November 08, 2010 at 11:38 PM, HarryCarysGhost (99.68) wrote:

RLAprof -

Not sure about a 529, There was some issue about owning MLP's in a roth. I could find what that was if you'd like.

 truthisntstupid I know about BPL since it's in my neck of the woods, seems solid, with a sweet div.

The MLP I owned was a propane company NRGY, sold since I wanted to book the profits and I started worrying about their debt level.

Now the one I bought for the account I run for my father, ETE I held and has been making nice returns for him since I roll the div into whatever pennystock that catches my fancy.

I know this is not your style, but I had to tell my strategy truthfully.

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#27) On November 08, 2010 at 11:57 PM, HarryCarysGhost (99.68) wrote:

http://www.investopedia.com/articles/basics/07/ml_partnerships.asp

RLAprof- My freind djshagggyd sent me this link about a year ago,  I hope this is helpful.

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