UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next
Author: captainccs 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: of 41594  
Subject: Re: A learning curve Date: 9/12/2012 1:27 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
if you're making the money-is-fungible argument


But one difference between collecting dividends and making capital gains is that you have to sell in order to collect capital gains.

In practice this is not an issue if you normally have some cash in the portfolio. You pay your expenses from the cash reserve and your ordinary trading keeps the cash at adequate levels. In other words, the selling and the spending don't need to be synchronous. The cash is the buffer. If you don't have cash, you can use margin making sure you pay it off ASAP.

My point is that each position should maximize CAGR and you need a cash management program. I pay things with my credit card and each month I do an ACH transfer from my broker to the credit card account. This gives me the frequent flyer miles and a 15 day interest free float. For expenses that can't be paid by CC, use the broker's checking privileges.

Denny Schlesinger
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next



The 2009 BMW Method Conference has been cancelled, due to minimum attendance numbers not being met. We hope to continue the annual BMW Method Conference tradition next fall.

Learn about the first four conferences on the BMW Method Website.

The BMW Method FAQ

BMW Method Website
Annual Conference Videos and Other Resources & Services
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.