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To: IRWIN JAMES FRANKEL who wrote (100115)4/17/2011 3:10:55 PM
From: tom pope of 114402
 
So it is not clear to me there is anyplace to hide for short term or intermediate term money.


That's the conclusion I'm slowly coming to.

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To: tom pope who wrote (100118)4/17/2011 3:24:10 PM
From: Dale Baker of 114402
 
Buying preferred stocks trading near par is about the closest you can get to low-risk high-return parking places, if you pick your companies well. PEB's new PEB-A issue is one example.

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To: tom pope who wrote (100111)4/17/2011 4:07:16 PM
From: xstuckey of 114402
 
tom,

This has probably been covered but I missed it, why are you leaving Hilton Head ?

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To: tom pope who wrote (100111)4/17/2011 4:34:47 PM
From: KyrosL of 114402
 
NXQ and NXR are tax free unleveraged CEFs, with a 5-6 year duration and around 5% tax free yields. They sell around 15% above their 2008 panic lows.

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To: xstuckey who wrote (100120)4/17/2011 4:45:48 PM
From: tom pope of 114402
 
In a word, Hilton Head is looking more and more like Myrtle Beach. Physical plant is getting old, older units are turning into time shares, crime is not yet a major issue but is increasing - and we'd always liked the beaches around Jacksonville.

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To: KyrosL who wrote (100121)4/17/2011 4:59:04 PM
From: tom pope of 114402
 
Thanks, Kyros, will look into them.

Dale, I'm still scarred by what happened two years ago. I remember how preferreds were savaged in early '09 - though they then became the best part of my subsequent one year portfolio, especially the bank related ones. I still have a few, but right now I'm looking for a cookie jar that I can liquidate pronto, at par.

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To: tom pope who wrote (100123)4/17/2011 5:14:14 PM
From: KyrosL of 114402
 
NXQ and NXR are not very liquid. Take a look at taxable CEF ACG instead, if you want quick liquidation. It's leveraged, 6 yr duration, 13% discount to NAV, and mostly in US Treasuries.

cefconnect.com 

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To: tom pope who wrote (100123)4/17/2011 5:17:39 PM
From: Dale Baker of 114402
 
If we have warning clouds again like September 2008, I will put most of my assets in cash, interest be damned. But short of a few improbably events, I don't see that on the horizon at all.

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To: KyrosL who wrote (100124)4/17/2011 5:23:23 PM
From: tom pope of 114402
 
Thanks, I will go there too.

Looking at NXQ, I found this -

The fund may invest up to 20% of its net assets in municipal obligations that pay interest subject to the federal alternative minimum tax.

When it comes time to do taxes, do you know how you would separate out the AMT sheep from the non AMT goats - just not report the latter as tax-exempt?

Thanks

Tom

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To: tom pope who wrote (100126)4/17/2011 5:29:44 PM
From: KyrosL of 114402
 
The AMT interest is still tax free, but its taken into account when computing AMT income. Fidelity computes correctly the AMT amount for all my CEFs, and Turbo Tax automatically allocates AMT and non-AMT income when I import from Fidelity. I don't have to do anything.

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