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Financial Planning / Tax Strategies


Subject:  Re: Investment/Tax Strategy Date:  5/27/1997  12:47 PM
Author:  TMFTaxes Number:  26 of 124479

On Fri, 23 May 97 17:12:24 -0600, ORWAHOO wrote:

I want to thank TMF Taxes and the folks at Motley Fool for this invaluable service.

Now for my question: This is one of those questions that is also related to Investment strategies, but I need to understand the tax angle.

First, background on me: I'm a 29 year-old Foolish investor. I manage my own IRA and a decent-size (for a 29 year-old) non-IRA portfolio. I'm fully invested in stocks and hold for the long term. I'm investment 'savvy,' but not necessarily tax 'savvy.' But, like many Fools, my investment knowledge is focused on individual stocks, and not mutual funds or bonds.

My father, in seeing my knowledge about the stock market (he has NO experience in investing), asked me to invest $100,000 for him. He's still a decade away from retirement, and, as a successful attorney, does not have immediate need for the money. Needless to say, he's in the highest tax bracket.

I plan on investing over a period of time (dollar cost averaging). I'll immediately put 20% into BTD stocks and perhaps short 10-20%. Then, every month or two, I'll buy a block of stock worth about $7,000. Over a 12-24 month period, I plan on eventually fully investing him in stocks.

(Tax question alert)

In the meanwhile, he will