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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121177  
Subject: Dear Client: Date: 3/3/2014 5:56 PM
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Dear Little Old Lady clients:

You know all of those stocks that send you a buck fifty every couple of months? Please give them to your favorite charity. Now.

If you continue to hold them until the company goes private I have to ask you lots of questions, the answers to which you will not have a clue. Heck, you won't even understand the questions. Then I'll have to spend time researching the stock and listening to you with your "deer in the headlights" look over some stock that is absolutely worthless to your current lifestyle and fretting about whether the IRS is going to send you to jail over making an estimate of the cost of the stock 2 decades ago.

Just give it away now. You get a tax deduction (which won't do you any good because you don't itemize, but that's another long discussion I'd rather not get into) and I save a bunch of headache.

--Peter

PS - Today's culprit is Mindspeed Technologies which was a spin off from Conexant which was a spin off from Rockwell, but after Rockwell spun off Rockwell Automation, Rockwell Collins, and either Meritor Automotive or ArvinMeritor (which may be the same company). And we will fervently pray you acquired the Rockwell stock after the Boeing/Rockwell merger. But my prayers may be in vain, as you've also got a couple shares of Boeing stock.

PPS - At least it's not leftovers from the breakup of AT&T.
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Author: Melancholia2 Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120347 of 121177
Subject: Re: Dear Client: Date: 3/4/2014 12:22 PM
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Would it help if you explained to them that it costs them more money in fees to you for you to do the "paperwork" (technical term understood by little old ladies) than they are actually making from the dividend?

Even little old ladies understand "this costs you money."

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Author: synchronicityII Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120353 of 121177
Subject: Re: Dear Client: Date: 3/4/2014 5:52 PM
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PS - Today's culprit is Mindspeed Technologies which was a spin off from Conexant which was a spin off from Rockwell, but after Rockwell spun off Rockwell Automation, Rockwell Collins, and either Meritor Automotive or ArvinMeritor (which may be the same company). And we will fervently pray you acquired the Rockwell stock after the Boeing/Rockwell merger. But my prayers may be in vain, as you've also got a couple shares of Boeing stock.

PPS - At least it's not leftovers from the breakup of AT&T.


I used to do those spreadsheets! (See my first post on TMF of ever, almost 16 years ago) I can't say I miss that part of my prior life.

FYI- I even have one for AT&T starting pre-break-up...well, at least through about 2000 or so. Wasn't there a spinoff from Lucent (Acelar or something) after Lucent was spun off itself, or something like that?

-synchronicity

PS- were any of those spinoffs stock and cash, and so "taxable to extent of boot"? Or did my saying that sentence just cause you to involuntary twitch?

PPS- at least they're actually getting the cash so they're not DRIPping. Small solace, I know.

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120355 of 121177
Subject: Re: Dear Client: Date: 3/4/2014 6:16 PM
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I used to do those spreadsheets! (See my first post on TMF of ever, almost 16 years ago) I can't say I miss that part of my prior life.

I cut my teeth on the ATT breakup. I thought that kind of stuff was just normal. Took me a few years to realize how complex it really was.

FYI- I even have one for AT&T starting pre-break-up...well, at least through about 2000 or so. Wasn't there a spinoff from Lucent (Acelar or something) after Lucent was spun off itself, or something like that?

I have a software program that still calculates the AT&T breakup (and partial re-assembly) through 2012. The software is current for 2014, so that's probably the last stock split/merger/acquisition transaction in the group.

PS- were any of those spinoffs stock and cash, and so "taxable to extent of boot"? Or did my saying that sentence just cause you to involuntary twitch?

Rockwell seems to be a bit easier than AT&T, in that it's almost all spin-offs of stock. No cash involved. And yes, there was a bit of a twitch there. ;-)

PPS- at least they're actually getting the cash so they're not DRIPping. Small solace, I know.

Very small.

--Peter

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