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Greetings, Kiwijuice2, and welcome. You asked:

<<Can someone explain the (year and a day thing) to me. I'm new to investing and my brain needs a little help. The RP Variation sounds pretty good but I'm not quite clear on everything yet. >>

It pertains to the holding period necessary to obtain the most favorable income tax rates when you sell assets that will be taxed because of a gain. If you sell stock outside of an IRA at a profit and if your holding period was one year or less, then the gain will be taxed at your ordinary income tax rate. OTOH, if you sell after you have held those shares for at least one year and a day, any gain will be taxed at a much lower long-term capital gains rate. For someone in the 15% marginal ordinary income tax bracket, the long-term capital gains rate is 10%. For those in the 28% or higher brackets, the long-term capital gains rate is 20%. In either case, taxes are lower when you satisfy the long-term capital gains holding period of one year and a day.

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