Allocating investments to maximize after-tax return.EXECUTIVE SUMMARY * In determining the proper division of bonds and equities between taxable and retirement accounts, the investor should seek to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. returns. * In general, assets expected to earn the highest pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta return should be placed in a retirement account; this will allow more income to compound tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. . * Investors can be classified into at least three types: traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. , active investors and passive investors. How does one decide how much income to invest in a regular, taxable account and how much to put into a retirement account? A number of considerations come to mind, among them projected holding period, tax bracket Tax Bracket The rate at which an individual is taxed due to a particular income level. Notes: Each income class is taxed at a different level. Generally, the more you make the more you are taxed. and desired rate of return. This article examines returns for different allocations, time frames, types of investors and tax brackets. An investor with a diversified diversified (di·verˑ·s portfolio will normally allocate To reserve a resource such as memory or disk. See memory allocation. his core holdings between equities (or equity funds) and bonds (or bond funds) or other fixed-income securities Fixed-income securities Investments that have specific interest rates, such as bonds. (e.g., money-market funds money-market fund, type of mutual fund that invests in high-yielding, short-term money-market instruments, such as U.S. government securities, commercial paper, and certificates of deposit. ). An investor with a diversified portfolio invested in both retirement and taxable accounts must decide whether after-tax return is maximized when bonds are placed in taxable accounts and stocks in retirement accounts or vice-versa. Equities held in a taxable account have an important advantage over bonds. Gains from the sale of equities held for more than one year are taxed at a lower capital gains rate, under Sec. 1(h). In a retirement plan, this tax advantage is lost; all taxable distributions (including gains from sales of equities) are taxed at ordinary income rates. In contrast, bond interest is always taxed at ordinary income rates. In general, assets expected to earn the highest pre-tax return should be placed in a retirement account; this will allow more income to compound tax-free. Over the long term, equities are expected to earn a higher annual rate of return than bonds; thus, an advantage of placing equities instead of bonds in a retirement account is that more income will be allowed to compound tax-free. Because there is a trade-off for equities (lower capital gains rates in a taxable account vs. tax-free compounding at a higher pre-tax return in a retirement account), it is not readily apparent whether equities or bonds should be placed in a taxable or a retirement account. This article examines the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or under which equities should be placed in retirement accounts and bonds in taxable accounts (and viceversa). Comparing After-Tax Returns In determining the proper division of bonds and equities between taxable and retirement accounts, the investor should seek to maximize after-tax returns. Thus, he needs to compare the after-tax returns when bonds are placed in a taxable account and equities in a retirement account (Portfolio 1) with after-tax returns when equities are placed in a taxable account and bonds in a retirement account (Portfolio 2). In this article, these comparisons are made across three groups of investors--traders, active investors and passive investors (terms not defined in the Code). Definitions Trader trader in U. S. income tax law, a person who deals in property as a business, making several purchases and sales within a year as distinguished from a few sales of assets held for investment. : In Moiler,(1) the Federal Circuit defined a "trader" as one who engages in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. trading of securities, rather than long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. holding of investments. Return is derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the sale of securities, rather than from dividends and interest. In Purvis Purvis can refer to: People
Active investor: An active investor does not believe that the stock market is efficiently priced; instead, he thinks that, from time to time, stocks may be mispriced.(3) Thus, an active investor occasionally buys and sell securities. This analysis assumes that an active investor occasionally buys and sells stocks or holds mutual funds in which the managers do the same. The active investor holds stock for more than one year to take advantage of long-term capital gains Long-term capital gain A profit on the sale of a security or mutual fund share that has been held for more than one year. rates. However, stocks are bought and sold with sufficient frequency that little (if any) tax deferral tax deferral The delay of a tax liability until a future date. For example, an IRA may result in a tax deferral on the amount contributed to the IRA and on any income earned on funds in the IRA until withdrawals are made. is achieved. Passive investor: A passive investor is one who believes that securities are efficiently priced and does not try to "beat the market." The passive investor holds securities for a long time, making only small and infrequent in·fre·quent adj. 1. Not occurring regularly; occasional or rare: an infrequent guest. 2. changes. This article assumes that for the passive investor, all gains are long-term and capital gains are realized at a 5% annual rate (i.e., the average holding period is 20 years). At this low realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. rate, not only does the investor take full advantage of the lower capital gains rates, but also achieves significant tax deferral. A passive investor who invests in equities through mutual funds would typically use index funds or tax-managed funds that have a low annual capital gains realization rate.(4) Methodology Applicable Tax Rates In this article, after-tax comparisons are made for investors in low-, middle-and high-tax brackets brackets: see punctuation. . Investors in the low-tax bracket In programming, brackets (the [ and ] characters) are used to enclose numbers and subscripts. For example, in the C statement int menustart [4] = ; the [4] indicates the number of elements in the array, and the contents are enclosed in curly braces. have a 15% ordinary income rate and a 10% long-term capital gains rate. Investors in the middle-tax bracket have a 28% ordinary income rate and a 20% long-term capital gains rate. Investors in the high-tax bracket have a 36% ordinary income rate and a 20% long-term capital gains rate. Annual Rate of Return This article assumes that stocks earn a 10.5% annual return, the pre-tax rate of return earned on stocks from 1926-1997.(5) While this is a historically higher annual return than on bonds, stocks have greater volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the . Of the 10.5% annual return, it is assumed that 80% of the return is capital gains and 20% is dividends. The 20% portion from dividends reasonably approximates the current dividend yield on U.S. stocks. The analysis further assumes that bonds earn a 6% pre-tax annual return. From 1926--1997, long-term Treasury bonds earned 5.2% annually.(6) However, an investor with a diversified bond portfolio will generally hold corporate bonds as well as mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. . These fixed-income securities, because of their higher credit risk, are expected to earn a somewhat higher return. Consequently, a 6% annual return represents a reasonable expected return Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: from a diversified bond portfolio. High-tax-bracket investors will usually be better off, on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , investing in a taxable account tax-exempt tax-ex·empt adj. 1. Not subject to taxation, as the capital or income of a philanthropic organization. 2. Producing interest that is exempt from income tax: tax-exempt bonds. n. (i.e., municipal) bonds or funds, instead of taxable bonds Taxable Bond A debt security whose return to the investor is subject to taxes at the local, state or federal level, or some combination thereof. Notes: The majority of bonds issued are taxable bonds. . Thus, these investors are assumed in this article to purchase municipal bonds or funds for their taxable account. Municipal bonds are assumed to earn 4.5% annually, which approximates the yield currently available.(7) After-tax returns and amounts are calculated over holding periods up to 40 years for $1,000 invested in Portfolios 1 and 2; these rates of return are averaged together for each portfolio and the after-tax amounts are added together. The differences in after-tax returns between Portfolios 1 and 2 are then computed.(8) Results Trader Exhibit 1 at right provides the after-tax values and returns for a trader, all of whose capital gains are taxed as ordinary income. For all tax brackets and over all time periods, the trader would be better off using Portfolio 1; moreover, the higher the tax bracket and the longer the investment horizon, the greater the advantage of placing equities in a retirement account.
Exhibit 1: Trader--after-tax value and rate of return
Holding period (years)
10 20 30 40
15% rate on ordinary income
and capital gains:
Portfolio 1 $4,101 $9,115 $21,591 $53,585
7.45% 7.88% 8.25% 8.57%
Portfolio 2 $4,023 $8,404 $18,028 $39,449
7.24% 7.40% 7.60% 7.74%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 .21% .44% .65% .83%
28% rate on ordinary income
and capital gains:
Portfolio 1 $3,761 $7,914 $18,231 $44,777
6.52% 7.12% 7.64% 8.08%
Portfolio 2 $3,642 $6,885 $13,318 $26,137
6.18% 6.38% 6.52% 6.64%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 .34% .74% 1.12% 1.44%
36% rate on ordinary income
and capital gains:
Portfolio 1 $3,650 $7,486 $16,900 $40,903
6.20% 6.82% 7.37% 7.84%
Portfolio 2 $3,422 $6,085 $11,073 $20,427
5.52% 5.72% 5.87% 5.98%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 .68% 1.10% 1.50% 1.86%
Assumptions: 1. $1,000 is invested in each of Portfolios 1 and 2. 2. Equities earn a pre-tax 10.5% annual return; taxable bonds earn a pre-tax 6% annual return; tax-exempt bonds Tax-exempt bond A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax. tax-exempt bond See municipal bond. earn a 4.5% annual return. 3. Of the 10.5% annual return for equities, 20% is dividend income and 80% is capital gain. 4. All capital gain is short-term. 5. Equities are held for one year or less. For example, for a trader with a 10-year investment horizon and a 15% tax bracket, the after-tax return for Portfolio 1 is 7.45%. For a trader with the same time horizon and tax bracket who used Portfolio 2, the after-tax return is 7.24%, a difference of .21%. In contrast, a trader with a 40-year investment horizon and a 36% tax bracket would have an after-tax return of 7.84% from Portfolio 1, but an after-tax return of only 5.98% from Portfolio 2. The rate of return difference is 1.86%; there is an after-tax accumulation Accumulation 1) In the context of individual investing, it is the process of contributing cash to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process. of about twice as much in Portfolio 1 ($40,903) than in Portfolio 2 ($20,427). For a trader, it always makes economic sense to place higher-return equities in a retirement account, because short-term capital gains Short-term capital gain A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income. are treated as ordinary income in a taxable account. High-tax-bracket investors benefit the most from placing equities in a retirement account, because more of the pre-tax return will be lost to taxes in a taxable account (and, therefore, be unavailable for compounding). Active Investor Exhibit 2 in the box on p. 331 provides the after-tax returns and values for an active investor who waits more than one year before selling equities to achieve long-term capital gains. However, the active investor buys and sells equities with sufficient frequency such that no tax deferral is achieved from holding equities in a taxable account.
Exhibit 2: Active investor--after-tax value and rate of return
Holding period (years)
2 6 10 20
15% rate on ordinary income/10%
rate on capital gains:
Portfolio 1 2,293 3,045 4,101 9,115
7.06% 7.26% 7.45% 7.88%
Portfolio 2 2,300 3,065 4,116 8,846
7.25% 7.37% 7.48% 7.72%
After-tax rate of return
advantage (disadvantage) of
Portfolio 1 (.19)% (.11)% (.03)% 0.16%
28% rate on ordinary income/20%
rate on capital gains:
Portfolio 1 2,247 2,879 3,760 7,914
6.00% 6.26% 6.52% 7.12%
Portfolio 2 2,260 2,908 3,775 7,455
6.31% 6.44% 6.56% 6.80%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 (.31)% (.18)% (.04)% 0.32%
36% rate on ordinary income/20%
rate on capital gains:
Portfolio 1 2,234 2,827 3,650 7,486
5.68% 5.94% 6.20% 6.82%
Portfolio 2 2,247 2,861 3,678 7,129
5.99% 6.14% 6.28% 6.56%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 (.31)% (.20)% (.08)% 0.26%
Holding period (years)
30 40
5% rate on ordinary income/10%
rate on capital gains:
Portfolio 1 21,591 53,585
8.25% 8.57%
Portfolio 2 19,619 44,534
7.91% 8.07%
After-tax rate of return
advantage (disadvantage) of
Portfolio 1 0.34% 0.50%
28% rate on ordinary income/20%
rate on capital gains:
Portfolio 1 18,231 44,777
7.64% 8.08%
Portfolio 2 15,147 31,357
6.98% 7.12%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 0.66% 0.96%
36% rate on ordinary income/20%
rate on capital gains:
Portfolio 1 16,901 40,903
7.37% 7.84%
Portfolio 2 14,279 29,188
6.77% 6.93%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 0.60% 0.91%
Assumptions: 1. $1,000 is invested in each of Portfolios 1 and 2. 2. Equities earn a pre-tax 10.5% annual return; taxable bonds earn a pre-tax 6% annual return; tax-exempt bonds earn a 4.5% annual return. 3. Of the 10.5% annual return for equities, 20% is dividend income and 80% is capital gain. 4. All capital gain is long-term. 5. On average, equities are held for more than one year. When the holding period is 10 years or less, regardless of the investor's tax bracket, the superior strategy is to use Portfolio 2; however, this advantage decreases as the holding period increases. In fact, beginning shortly after 10 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time superior strategy is to use Portfolio 1. Why? For shorter holding periods, equities can use the lower capital gains rates obtained in a taxable account. For longer holding periods, however, the tax-flee compounding of the higher return on equities outweighs the loss of long-term capital gain treatment. Passive Investor Like the active investor, the passive investor is assumed to hold equities more than one year to use long-term capital gain treatment; in addition, he has only a 5% annual capital gains realization rate. When an equity portfolio has such a low realization rate, equities in a taxable account achieve much of the same tax deferral as they would in a retirement account. Exhibit 3 in the box on p. 332 provides the after-tax returns and amounts for the passive investor; it illustrates that when equities in a taxable account receive both long-term capital gain treatment and significant tax deferral, it makes economic sense to use Portfolio 2 for all but the longest holding periods. Only when the holding period reaches approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30 years is it logical to use Portfolio 1.
Exhibit 3: Passive investor--after-tax value and rate of return
Holding period (years)
2 6 10
15% rate on ordinary income/10%
rate on capital gains:
Portfolio 1 $2,293 $3,045 $54,101
7.06% 7.26% 7.45%
Portfolio 2 $2,301 $3,079 $4,166
7.27% 7.45% 7.61%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 (.21)% (.19)% (.16)%
28% rate on ordinary income/20%
rate on capital gains:
Portfolio 1 $2,247 $2,879 $3,760
6.00% 6.26% 6.52%
Portfolio 2 $2,261 $2,932 $3,860
6.34% 6.58% 6.80%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 (.34)% (.32)% (.28)%
36% rate on ordinary income/20%
rate on capital gains:
Portfolio 1 $2,234 $2,827 $53,650
5.68% 5.94% 6.20%
Portfolio 2 $2,248 $2,883 $53,761
6.02% 6.29% 6.52%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 (.34)% (.35)% (.32)%
Holding period (years)
20 30 40
15% rate on ordinary income/10%
rate on capital gains:
Portfolio 1 $9,115 $521,591 $553,585
7.88% 8.25% 8.57%
Portfolio 2 $59,227 $21,292 $550,573
7.94% 8.20% 8.41%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 (.06)% 0.05% 0.16%
28% rate on ordinary income/20%
rate on capital gains:
Portfolio 1 $7,914 $18,231 $44,777
7.12% 7.64% 8.08%
Portfolio 2 $8,062 $17,639 $39,738
7.22% 7.53% 7.76%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 (.10)% 0.11% 0.32%
36% rate on ordinary income/20%
rate on capital gains:
Portfolio 1 $7,486 $16,901 $40,903
6.82% 7.37% 7.84%
Portfolio 2 $7,711 $16,633 $36,989
6.98% 7.32% 7.57%
After-tax rate of return
advantage (disadvantage)
of Portfolio 1 (.16)% 0.05% 0.27%
Assumptions: 1. $1,000 is invested in each of Portfolios 1 and 2. 2. Equities earn a pre-tax 10.5% annual return; taxable bonds earn a pre-tax 6% annual return; tax-exempt bonds earn a 4.5% annual return. 3. Of the 10.5% annual return for equities, 20% is dividend income and 80% is capital gain. 4. All capital gain is long-term. 5. Equities are turned over at a 5% annual rate (i.e., stock is held for 20 years). Overall In general, Exhibits 1-3 clearly show that the more tax efficiently an equity mutual fund or individual stock portfolio is managed (e.g., waiting more than a year to realize capital gains and realizing capital gains very infrequently in·fre·quent adj. 1. Not occurring regularly; occasional or rare: an infrequent guest. 2. ), the more logical it is to use Portfolio 2. Thus, a passive investor should use Portfolio 2, as should an active investor who intends to hold equities for less than 10 years. An active investor who intends to hold equities for a longer period should use Portfolio 1. A trader should always use Portfolio 1. Real-World Investor Usually, an investor does not neatly neat 1 adj. neat·er, neat·est 1. Orderly and clean; tidy. 2. Orderly and precise in procedure; systematic. 3. fit the characteristics of a trader, active investor or passive investor; instead, some portion of his portfolio might characterize him as a trader, while another might characterize him as an active investor. To decide if an equity portfolio best renders the owner a trader, active investor or passive investor, it is necessary to examine the individual's likely trading patterns Trading pattern Long-range direction of a security or commodity futures price, charted by drawing one line connecting the highest prices the security has reached and another line connecting the lowest prices at which the security has traded over the same period. . A portion of an equity portfolio might include stocks that the investor intends to hold for a long time. These would likely characterize the investor as passive and therefore, belong in a taxable account. So-called so-called adj. 1. Commonly called: "new buildings ... in so-called modern style" Graham Greene. 2. growth stocks with a well-established track record might fit into this category. A significant portion of a stock portfolio will likely be purchased with the intention of holding it long enough to achieve long-term capital gain treatment, but not long enough to achieve significant tax deferral. If this portion of the portfolio is not to be cashed out of equities for at least 10 years, it should be placed in a retirement account; otherwise, it should be placed in a taxable account. With the explosion of inexpensive online trading Online Trading Making trades via the Internet. Notes: The use of online trading increased dramatically in the mid to late 1990's with the advent of high-speed computers and Internet connections. Stocks, bonds, options, futures, and currencies can all be traded online. , it is increasingly common to find investors turning over at least a portion of their portfolios at a very rapid rate. "Day-traders" (i.e., those who buy and sell a stock in the same day) are extreme examples of this group; the portion of their stock portfolio designated for trading should be placed in a retirement account. Real-World Investments Whether to place an equity mutual fund in a taxable or retirement account is determined by the length of time the investor intends to hold a particular fund and by the frequency with which the fund manager realizes capital gains. While it is not possible to determine a fund's capital gains realization rate, the fund's turnover rate (a rough proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. for the capital gains realization rate) can be determined.(9) If the investor uses a buy-and-hold strategy Buy-and-hold strategy A passive investment strategy with no active buying and selling of stocks from the time the portfolio is created until the end of the investment horizon. Opposite of active strategy. for a particular mutual fund that has a very low portfolio turnover, the mutual fund should be placed in a taxable account. While only a small percentage of actively managed funds have a very low portfolio turnover, index funds that seek to replicate rep·li·cate v. 1. To duplicate, copy, reproduce, or repeat. 2. To reproduce or make an exact copy or copies of genetic material, a cell, or an organism. n. A repetition of an experiment or a procedure. the performance of large capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. stock indexes as well as tax-managed funds tend to. The most common scenario A scenario (from Italian, that which is pinned to the scenery) is a synthetic description of an event or series of actions and events. In the Commedia dell'arte occurs when an investor holds a mutual fund for more than one year and the mutual fund manager holds stock more than One year before realizing capital gains. No significant tax deferral is obtained, however, because either the mutual fund itself is not held for many years or the mutual fund stock portfolio is turned over regularly. For this scenario, if the investor plans on holding the mutual fund (or series of funds) for less than 10 years, the mutual fund should be placed in a taxable account. If the intended holding period exceeds 10 years, the fund should be placed in a retirement account. The mutual fund manager may realize capital gains so frequently that a significant portion (if not all) of the capital gains are short-term (i.e., ordinary income to the investor). An annual portfolio turnover rate significantly in excess of 100% is often an indication that a major portion of the capital gains realized are short-term. So-called "aggressive growth" funds or managers who adopt a "momentum" style of investing often have a very rapid turnover rate. Funds of this nature should generally be placed in a retirement account. Even if the mutual fund is reasonably tax-efficient, if the investor does not plan on holding the fund for more than one year, it should be placed in a retirement account. Other Considerations In addition to potentially achieving long-term capital gain treatment and tax deferral by placing equities in a taxable account, there are two additional advantages. While they are not relevant to all investors, for some they might be of sufficient importance to favor placing the equities in a taxable account when there is otherwise little difference in the expected after-tax return. An investor may plan on passing a stock portfolio through his estate instead of using it for retirement or education. If so, the investor should keep in mind that equities in a taxable account are adjusted ("stepped") up or down to their fair market value at his death, under Sec. 1014(a). This is an obvious advantage if the overall portfolio has appreciated in value. In contrast, equities in a retirement plan are not permitted a stepped-up stepped-up adj. Increased in pace or intensity; heightened: a stepped-up political campaign. basis at the investor's death. An investor can recognize capital losses on directly held stocks that have depreciated Depreciated may refer to:
Conclusion Increasing the tax efficiency of an investment portfolio allows the investor to increase after-tax returns without assuming additional risk. Carefully splitting .equities and bonds between taxable and retirement accounts provides investors the opportunity to increase tax efficiency. Investors should analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. the trading activity (or lack thereof) in both their directly held stocks and equity mutual funds and decide whether they best fit the characteristics of a trader, active investor or passive investor. This information can be used to decide how allocations should be made. For investors who directly hold stocks or plan on passing their portfolios through their estates, it makes economic sense to place equities in taxable accounts when there is otherwise little difference in after-tax returns: (1) Joseph A. Moiler, 721 F2d 810 (Fed. Cir. 1983) (52 AFTR AFTR American Federal Tax Reports (Prentice-Hall) AFTR Americans For Tax Reform AFTR Air Force Training Ribbon AFTR Air Force Training Record AFTR atrophy, fasciculation, tremor, rigidity AFTR Atomic Frequency Time Reference 2d 83-6333, 83-2 USTC USTC University of Science and Technology of China USTC United States Tax Cases (Commerce Clearing House) USTC United States Transportation Command (see USTRANSCOM) [paragraph] 9698). (2) Ralph E. Puwis, 530 F2d 1332 (9th Cir. 1976) (37 AFTK AFTK A Farewell to Kings (band) AFTK A Farewell to Kings (Rush album) AFTK Away From The Keyboard AFTK All For The Kids (nonprofit) 2d 76-968, 76-1 USTC [paragraph] 9270). (3) Sharpe Sharpe , William Forsyth Born 1934. American economist. He shared a 1990 Nobel Prize for contributions to financial economics. , Investments (Prentice Hall Prentice Hall is a leading educational publisher. It is an imprint of Pearson Education, Inc., based in Upper Saddle River, New Jersey, USA. Prentice Hall publishes print and digital content for the 6-12 and higher education market. History In 1913, law professor Dr. , 2d ed., 1981), pp. 587-588. (4) A rough equivalent to the capital gains realization rate is portfolio turnover; however, the latter includes equities sold at a loss. Selling stocks at a loss may actually help a portfolio achieve more tax deferral, because capital losses can offset capital gains. (5) Siegel Siegel, a surname, is associated with two ethnic groups. As a Jewish surname Siegel (סג"ל) it could be an acronym of Segan Levi (סגן לוי), meaning "Assistant Levite". , Stocks for the Long Run (McGraw-Hill The McGraw-Hill Companies, Inc., (NYSE: MHP) is a publicly traded corporation headquartered in Rockefeller Center in New York City. Its primary areas of business are education, publishing, broadcasting, and financial and business services. , 2d ed., 1998), p.13. The actual pre-tax return for stocks over this period was 10.6%. (6) Id. (7) As of Sept. 1, 1998, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Vanguard Vanguard Any of three unmanned U.S. experimental satellites. Vanguard I (1958), the second U.S. satellite placed in orbit around Earth (after Explorer 1), was a tiny 3.25-lb (1.47-kg) sphere with two radio transmitters. Website (http://www.vanguard.com), the yield for Vanguard's Municipal Bond Fund--Intermediate Term was 4.19%; for Vanguard's Municipal Bond Fund--Long Term, the yield was 4.62%. (8) The detailed steps involved in calculating after-tax returns and amounts may be obtained from the author at toolson@wsu.edu See .edu. (networking) edu - ("education") The top-level domain for educational establishments in the USA (and some other countries). E.g. "mit.edu". The UK equivalent is "ac.uk". . (9) A fund's turnover rate can be obtained from a number of different sources, including the subscription service from Morningstar Mutual Funds (phone (800) 735-0700; Website http://www.momingstar.com); The Individual Investor's Guide to Low-Load Mutual Funds (American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Ass'n of Ind'l Investors, 17th ed., 1998) (phone (800) 428-2244), the fund's annual or semiannual Semiannual An event that occurs twice in a calendar year. Notes: A bond with semiannual coupons would issue payment once every six months. See also: Annual, Bond, Coupon Bond report or by contacting the fund directly. Richard B. Toolson, Ph.D., CPA Associate Professor School of Accounting, Information Systems, and Business Law Washington State University Pullman, WA |
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