Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<<1) I have a 4 yr. 2.9% loan on my new car.
a) I _could_ just put the cash into T-bills at 5%+
b) I could put it into Vanguard Index (which I already own)
c) I could put it into the Foolish Four at the start of the year.
[where did I get the cash -- by not stopping the
payroll deduction when my last car was paid off]>>

I'm not sure if this is a question or comment. I'll assume it must be a comment, 'cause I don't have any good answers if it is a question.

<< 2) Is the Foolish Four investment a good idea IF I might need the money at the end of the four

A good investment absolutely, or compared to something else? Obviously, with a short time horizon, any equity might be a problem...especially one that is simply executed on a fixed schedule. But would it be better than just putting your money in the bank...I would think so, but my crystal ball is a little on the hazy side today. Really, only YOU are in the position to know your financial situation and make that determination.

<< a) With the change in the tax law re. Long Term Capital gains, do you still roll over every 12 mo. or
do you not roll over until the 18 mo. is up?>>

Check the Fools School area, especially the Beat the Dow and Foolish 4 areas. I believe that the official Fool position is to hold for more than 18 months, but you would have to check out the BTD pros in order to more fully understand the rational (other than an 8% tax rate savings).

<< 3) I am retired (see signature) but so far am still in a positive cash flow situation, if this makes any
difference in investment strategies.>>

But, we deal primarily with tax strategies here. I'm not nearly smart enough to really provide any investment advice, especially when I have no knowledge of your other assets, liabilities, goals, etc. So I'm not sure that I can be of much help.

TMF Taxes
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.