So You’ve Made a Killing on Bitcoin This Year?

So you’ve made a killing on Bitcoin this year? Time to celebrate… and pay taxes. I’m interested in the greater debate on the staying power of crypto currency, but this is not the post for that debate. Some people count down until Christmas. We are winding down 2017 and the count down for Bitcoin and crypto traders should be “tax season.” The IRS treats digital currencies, like Bitcoin, as property. This means that traditional property rules are applied under the IRS. We’ll talk specifically about the investment side of digital currency investments. You should note that this is also applicable for goods and services – both paid and compensated – in the virtual currency space. It is the taxpayer’s responsibility to report capital gains and losses. This means that the property is taxed as a capital asset. The IRS defines a capital asset as property held by the taxpayer, weather or not it’s it’s connected with taxpayer’s trade or business. As a result you have to report any capital gains or losses to the IRS. Let’s dive into that now. What is a capital gain?  A capital gain is the profit that you receive when you sell the property. There are two types of capital gains – long term and short term. Short term capital gains are defined as property held less than 12 months. Long term capital gains are defined as property held longer than 12 months. Taxation of Long Term and Short Term Gains?  Short term capital gains are treated as ordinary income for the purposes of taxation. Long term capital gains are taxed at either 0%,...

How to protect yourself after Equifax data hack

I was speaking with a few co-workers and clients yesterday after the bad news broke that Equifax lost approximately 143 million individual’s data. Quick tips on how to protect yourself after Equifax hack. Simply follow these steps to reduce the chances of identity impacts. Equifax is one of the top three credit bureaus that provide the backbone to lenders and borrowers. The other two majors are Transunion and Experian. Interestingly, Equifax’s latest hack ranks in the top tier of hacks recently – Yahoo still takes number one with 1 billion user accounts compromised. What makes this hack unique is all of our personal information is in one spot – Social Security numbers, date of birth, name and addresses. Scary! How do you know if you’re impacted? Easy – visit Exquifax website and punch in some of your vital details. you will receive some preliminary information about any compromises. What do I do now that I’m impacted? You’re compromised!! Get out and place a freeze on your credit with all three major bureaus. Good news – it’s free! Who doesn’t like free? Remember that if you’re putting a freeze on your credit it will limit the ability for financial institutions to access your information for new loans, credit lines and possibly establishing new accounts (bank, investment, lending).  Federal Trade Commission FAQ on credit freezes. Equifax credit freeze – start here Transunion credit freeze – start here Experian credit freeze – start here Lastly, it is best to obtain a copy of your credit report. Additionally, keep a eye on your financial institutions. In a world of constant security breaches, these types of things seem to be “the...
Tesla Stock Innovation – Do you even maths, bro?

Tesla Stock Innovation – Do you even maths, bro?

Tesla stock innovation – do you even maths bro?  Tesla stock innovation is what is driving it’s growth? You think GM and Ford are outdated and not innovative? Would you say the same thing of Toyota? Toyota is the largest global auto manufacture. The fight is one with Nissan for top spot. Toyota was the first manufacture to introduce hybrid technology in a vehicle on a mass scale with the ugly ass designed Prius. Sorry Prius drivers. Toyota debuted the Prius in 1997. Toyota continued across to the  global market in 2000. Now United States accounts for approximately half of the Prius sales. I wrote recently about the insanity of the market capitalization of Tesla compared to General Motors and Ford. You’ve made your case – Tesla stock innovation is key. I started thinking more about the auto industry as a whole – about Tesla’s marketshare. When I drive around my local suburbs, I do see plenty of Tesla’s on the road. Living in a more affluent area is an easy explanation for the volume of Tesla’s in my neighborhood. I see more Toyota, BMW, VWs and Honda vehicles around. I started to do a bit of digging. Let’s look at the global revenue (and marketshare) of the leading auto manufactures here:   I mentioned this in my last post about Tesla – it’s important to consider the fundamentals of the investment as well as the future opportunities. The market capitalization, revenue and net income/loss comparison between the top revenue producers compared with Tesla: Tesla has a hard time keeping pace with the United States auto manufactures marketshare. Stretching out the comparison on the global auto manufacturing market does...
Tesla – the crack of the stock market?

Tesla – the crack of the stock market?

You either sell crack rock or have a wicked jump shot. Tesla seemingly does both – figuratively of course. When I read around some of the media pundits, social media postings and news articles and I find the Tesla stock story fascinating. Lets take a look at some investment analysis of the Tesla stock. I’m not here to be a bull or a bear in this position. There are many things that I love about this organization and Mr. Musk. There is no denying he has a kick ass and take names later attitude that resonates with investors. The thing I find most interesting is when you start to break down the numbers a bit. Let’s take a quick look at the numbers through the first two quarters of 2017. The figures are pulled directly form the respective press releases. The Big 3 It’s hard to deny the market exposure, especially in the Americas, with General Motors and Ford. These two American powerhouse manufactures selling a sh*t ton of vehicles. Check out some of the numbers:  When you look at some of the number it doesn’t make a lot of sense. Tesla’s market capitalization is 114% of General Motors and 135% of Ford’s. In contrast, Tesla’s vehicle delivers are approximately 1% of General Motors and approximately 2.8% of Fords. The revenue for Tesla represents about 7% of General Motors and Ford. The net revenues speak for themselves. It’s interesting to look at these compared to their market cap. It’s clear that investors are relying on the wicked jump shot to lift this organization onto some next level sh*t.   When you look at...

I Hate Annuities – real life story

I’m sure that you have seen the advertisement for Mr. Ken Fisher’s advisory firm – “I hate annuities.” It’s hard to argue with a guy that manages some $65 billion in client assets. In my day to day experience, I meet with hundreds of individual investors seeking advice on a myriad of goals. It’s very common to see an annuity in their investment bag of tricks. I hate annuities. Insurance products can serve a purpose in a client’s investment portfolio. They have some benefits that would be used for a specific need. In my experience, it seems that insurance sales folks see it as every situation and every need is solved with an annuity! When all you have is a hammer, everything looks like a nail. The insurance person is motivated by the comp structure set by the insurance company – big paydays. Let me share with you a real life client story of a gentlemen that was sold one of these products and why I agree with Mr. Fisher. Let’s call this client Jim – Changing the name for obvious reasons. Jim retired from his company and accumulated about $400,000 inside of his 401(k) retirement savings plan. The insurance person he met with, a friend of the family, sold him an annuity with large and reputable insurance company. I’ll refrain from using their name – I don’t need a slanderous litigation coming my way. Jim took his $400k and placed it into this investment product – variable annuity. The variable annuity has two basic components – investment exposure and insurance exposure. This vehicle allowed an asset allocation to...
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