Comments on: Of Oil Prices and Money Management http://www.roadtoindependenceblog.com/2009/12/20/of-oil-prices-and-money-management/ Wed, 28 Jul 2010 15:37:53 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Bob http://www.roadtoindependenceblog.com/2009/12/20/of-oil-prices-and-money-management/comment-page-1/#comment-9327 Bob Wed, 30 Dec 2009 02:51:48 +0000 http://roadtoindependenceblog.com/2009/12/20/of-oil-prices-and-money-management/#comment-9327 Mike, with your basket trades at TradePMR, does buying baskets of securities reduce your ticket charges? In other words, if you buy an ETF for 20 clients, can you aggregate the purchase and pay one ticket charge, or do you pay the ticket charge for allocating to all 20 clients? Mike,
with your basket trades at TradePMR, does buying baskets of securities reduce your ticket charges? In other words, if you buy an ETF for 20 clients, can you aggregate the purchase and pay one ticket charge, or do you pay the ticket charge for allocating to all 20 clients?

]]> By: Mike Patton http://www.roadtoindependenceblog.com/2009/12/20/of-oil-prices-and-money-management/comment-page-1/#comment-8888 Mike Patton Tue, 22 Dec 2009 01:32:36 +0000 http://roadtoindependenceblog.com/2009/12/20/of-oil-prices-and-money-management/#comment-8888 James, None of the ETF's "mirror" the price of oil. I use "OIL" which is an ETN not an ETF. Better tax treatment. I picked up some new clients this year and sure, some have capital loss carryforwards and will use them. Some don't. In 08, we were very cautious and, on average, lost 16.5%. Some clients were down 25% and others -10% (+/-). Therefore, some clients have mostly gains in the portfolio. As I"m sure you know...it all depends on when you bought. James,
None of the ETF’s “mirror” the price of oil. I use “OIL” which is an ETN not an ETF. Better tax treatment. I picked up some new clients this year and sure, some have capital loss carryforwards and will use them. Some don’t. In 08, we were very cautious and, on average, lost 16.5%. Some clients were down 25% and others -10% (+/-). Therefore, some clients have mostly gains in the portfolio. As I”m sure you know…it all depends on when you bought.

]]> By: James http://www.roadtoindependenceblog.com/2009/12/20/of-oil-prices-and-money-management/comment-page-1/#comment-8873 James Mon, 21 Dec 2009 17:47:05 +0000 http://roadtoindependenceblog.com/2009/12/20/of-oil-prices-and-money-management/#comment-8873 "The bottom line is that I don’t want my clients getting a big tax bill." I'm curious to know just how many of your clients would possibly face this situation.... Given broad market performance over the past decade (worst in history) it's difficult to imagine your clients with taxable accounts don't have any losses harvested over the years to offset any gains in 2009. Either they're held positions for a decade plus, had tremendous absolute return strategies, or nobody brought them the idea of harvesting tax-losses in oh say december of 2008. How I manage it in my practice? It's not an issue due to harvested losses exceeding gains. Also, i'm curious what position you're using to mirror "oil." I assume you're using ETF's, in which the USO has been a horrible vehicle. For example, the USO is actually down since early January, yes down, while front month futures in crude are up nearly 100%. Are you using the USO or another ETF/Futures? “The bottom line is that I don’t want my clients getting a big tax bill.”

I’m curious to know just how many of your clients would possibly face this situation….

Given broad market performance over the past decade (worst in history) it’s difficult to imagine your clients with taxable accounts don’t have any losses harvested over the years to offset any gains in 2009.

Either they’re held positions for a decade plus, had tremendous absolute return strategies, or nobody brought them the idea of harvesting tax-losses in oh say december of 2008. How I manage it in my practice? It’s not an issue due to harvested losses exceeding gains.

Also, i’m curious what position you’re using to mirror “oil.” I assume you’re using ETF’s, in which the USO has been a horrible vehicle. For example, the USO is actually down since early January, yes down, while front month futures in crude are up nearly 100%. Are you using the USO or another ETF/Futures?

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