Your Questions About Money Making Stocks For 2011

Chris asks…

401K Loan Question/Advice Requested?

I have a healthy balance in my 401K and have a question. For a little background I am 36 and have contributed max to my 401K for a few years now. I have already maxed out my 2011 contribution. With the decline of the stock market (and my funds) over the past little bit would it benefit me to take a loan from my 401K and spread the repayment out over the next 12 months to try to cost average purchase during this downswing? I do not need the funds for anything but I bought all of my funds above what they are selling for this year so my thought is take the loan, repay it over 12 months, and hopefully re buy at a lower price. I am far from a financial guru so I may be missing something really obvious but it seems to make sense to me. I have a very stable job (as stable as they can be in this economy at least) so repayment should not be an issue. I would simply bank the money so if something were to happen job wise I would be able to repay in full and forego any penalties. Any thought or things I may be missing with this approach would be greatly appreciated.

John answers:

1. You pay back with after tax money and then when you retire you pay tax on that same money again (insane – yet people do this)
2. You can only take 50% of your vested amount
3. If you lose your job – the amount is immediately re-payable back or you get hit with taxes and penalties

The tax consequenses named in #1 – make this the most horrendous way for a person to get a loan. How about just putting your money into a stable value fund. Look at your fund choices and put your money in a safe place in your 401K

Mandy asks…

Is my Persuasive Speech good for a 7th grade level?

I’m happy to be able to talk with my fellow students on a topic that is in need of a great discussion. This topic will not be appealing to all students here in Brooklawn Middle School, but I can assure you, we simply, have to have this. I’ll get to what I want to discuss later, but may I ask you a question?
What do you celebrate; Christmas, Hanukah, Kwanza, Easter, or any other holidays that you may get gifts from a parent? Would you want okay presents, or awesome presents?
With more money, your parents will be able to buy you these great things you want. According to the top ten most-wanted gifts of 2011 include The Kindle Fire, Macbook Air, Jewelry and much more.
Do you want costume jewelry, or real 24k Gold earrings or chains?
Do you want a brand-spanking new Kindle, or a cheap MP3 player?
Do you want a nice Macbook Air, or a small generic brand notebook?
I bet I can answer that for most of you. Whether you are or are not above the poverty line, you will have a great chance of getting these gifts in the holidays.
Now I know gifts are not everything, and in this modern era, 1 out of every 4 kids has been bullied, according to The American Justice Department.
Would you want to be the one singled-out in school?
Would you want to be made fun of, laughed at or disliked in your school?
The answer is no. No one wants to be that student. Besides the fact of being a victim of student to student bullying, would you want your school in general, to be known as, “That dirty public school”.
Do you want your school to be known as the school that is disorderly?
Do you want your school to be the laughing-stock of schools in Morris County?
I would hope not. Now, I know you are going to immediately say “no” to when I mention this.
But do you like nice gifts?
Do you want to be bullied?
Do you want your school to be disorderly?
So the solution to this is, we must have a school uniform!
With this uniform, your parents will have more money to spend, because they will not have to constantly buy the new clothes of the month.
With this uniform you will not be bullied on what you wear, because everyone will look like you!
With this uniform, Central Middle School will be in envy, wishing they looked as good as you do.
At the price of $60.00 a set for girls and boys, you get your basic school uniform. This may seem to be a lot of money in a child’s mind, but it is more than affordable for a parent. You would need at least 3 uniforms, for the whole year which comes to $180.00 per child. According to Yahoo News Articles, the average cost of single teens clothes a year is approximately $1100.00 to $1500.00, and we are asking for much less than that.
With the uniform, more money will be in your parent’s pocket, and that will get you the gifts you want!
With the uniform, bullying will go down, and you more students will be happier.
With the uniform, your school will be looked up upon, and it will be a school that other the schools want to be.
So get your parents to sign my petition, and make sure to tell them that getting a uniform, is the right choice!

John answers:

Very persuasive, but only if the decision for the uniform is completely up to the students. You didn’t list any reasons why the school itself (teachers, principal, school board) should implement uniforms, other than being a “disorderly school” and the reputation the school might have. When writing persuasive essays such as this, try to appeal to a wider audience, therefor increasing your chance of approval. Other than that, I would say you did a very good job overall. I would check your grammar and punctuation, however, because I did notice a good amount of errors.

Charles asks…

your bank deposits will give obama nomics 1%…is it a tax?

1% tax on all bank transactions HR4646

Watch for this AFTER November elections; remember this BEFORE you VOTE in case you think Obama’s looking out for your best interest.

1% tax on all bank transactions HR 4646

This government just cannot think of enough ways to hurt the American people! I sure hope this dies!!!!!


1% tax on all bank transactions HR 4646 – ANOTHER NEW OBAMA TAX SLIPPED IN WHILE WE WERE ASLEEP. Checked this on snopes, it’s true ! Check out HR 4646.

President Obama’s finance team is recommending a one percent (1%) transaction fee (TAX). Obama’s plan is to sneak it in after the November elections to keep it under the radar.

This is a 1% tax on all transactions at any financial institution – banks, credit unions, savings and loans, etc. Any deposit you make, or even a transfer within your account, will have a 1% tax charged. ~If your paycheck or your social security or whatever is direct deposit, it will get a 1% tax charged for the transaction. ~If your paycheck is $1000, then you will pay Obama $10 just for the privilege of depositing your paycheck in your bank. Even if you hand carry your paycheck or any check into your bank for a deposit, 1% tax will be charged. ~You receive a $5,000 stock dividend from your broker, Obama takes $50 just to allow you to deposit that check in the bank.. ~If you take $1,000 cash to deposit at your bank, 1% tax will be charged.

Mind you, this is from the man who promised that, if you make under $250,000 per year, you will not see one penny of new tax. Keep your eyes and ears open, you will be amazed at what you learn about this guy’s under-the-table moves to increase the number of ways you are taxed.

Oh, and by the way, if you receive a refund from the IRS next year and you have it direct deposited or you walk in to deposit that check, you guessed it. You will pay a 1% charge of that money just for putting it in your bank. Remember, any money, cash, check or whatever, no matter where it came from, you will pay a 1% fee if you put it in the bank.

Some will say, oh well, it’s just 1%. Are you kidding me? It’s a 1% tax increase across the board. Remember, once the tax is there, they can also raise it at will. And if anyone protests, they will just say, “Oh,that’s not really a tax, it’s a user fee”! Think this is no big deal? Go back and look at the transactions you made on one year’s banking statements. Then add the total of all those transactions and deduct 1%. Still think it’s no big deal?


” A government big enough to give you everything you want is also big enough to take away everything you have.” – Barry Goldwater

= . Debt Free America Act •••
Is the U.S. government proposing a 1% tax on debit card usage and/or banking transactions?

…It is true. The bill is HR – 4646 introduced by US Rep Peter deFazio D-Oregon and US Senator Tom Harkin D-Iowa.

Their plan is to sneak it in after the…

…moved beyond proposing studies and submitted the Debt Free America Act (H.R. 4646 ), a bill calling for the implementation of a scheme to pay down the…

…[2010] by Rep. Chaka Fattah (D-Pa.). His “Debt Free America Act” (H.R. 4646 ) would impose a 1 percent “transaction tax” on every financial transaction…
Thu, 01 Sep 2011 11:26:08 GMT

John answers:

Your premise and details are false. Why is it necessary for you to lie?

Ken asks…

Captain Gains Tax Question?

I have stock that was bought for me when I was born. Its completely in my name and all. Worth about 35k at the current market price. My gross income is 40k and I just claim myself. I am considering selling my stock as a downpayment on a house for a few reason. A. Renting is stupid. B. The money goes towards the house which is another asset.

Now my predicament is as follows. Like I said I make 40k a year, but the IRS capital gains tax depends on your federal tax bracket. I am only 23 and haven’t even been working at my current job for a full year, so my 2011 income will be lower than the 40k, as I only made $14/hr at my prior job.
IRS says that if you are in the 15% tax bracket or lower than your capital gains tax is 0%. Can someone help me out in determining how taxable income is determined and which bracket I’d be in?
Okay so it counts as additional income, understood.

What if I sell the stock, then use all of as downpayment into another asset? Does that still count as income?

John answers:


Does anyone around here remember the basics?

To determine your capital gain you take the selling price and subtract the cost of the stock ( Basis in the stock). You received the stock as a gift. Therefore your BASIS is the cost of the stock when it was purchased because they gave you the stock with a basis attached to it.

Example: 35,000 (selling price) – 15,000 (basis) = 20,000 of capital gain.

There are a couple of places on the internet that can tell you the cost of the stock if you know what date it was purchased on.

Do your homework on this before getting your tax return done; don’t expect the return preparer to look up your basis for you. That is your job as it could take some time. Your parents might know!

I’ll stick out my neck and say that given what you wrote that you’ll be in that 15% bracket and the zero capital gains rate.

Joseph asks…

(read details) Can I drive my Nissan Skyline in Quebec if I convert it to LHD (Left hand drive)?

Hi, recently Ive fell upon a heavily modified Nissan Skyline thats for sale in Edmonton, Alberta. Being the car enthusiast that I am and the price of the car for its condition, I wanted to jump on the deal. I have a few questions though. I asked my brother if it would be legal to do a conversion for my skyline. Of course, Im talking about the RHD to LHD conversion (Right hand drive to Left hand drive). Now, I live in Quebec and the car is an Alberta car. In quebec it says that any Right hand drive car purchased before April 29th, 2009 and registered before march 31st, 2011 WILL be legal to DRIVE on PUBLIC roads. It doesnt specify if the car in question is purchased after April 29th, 2009 and before March 31st, 2011 and converted after these dates, if it would be legal to drive on a public road in Quebec.
I already have a team for the conversion which I plan to do in Montreal or in Ottawa as I have access to both areas. I have the money ready and Im getting a great deal on it, so please, no nagging about the price and how I can afford it or not.

Specs on the situation:

Car: 1995 Nissan Skyline GT-R33.
Mods: MANY
Total cost of car and conversion (12,000$)
Milleage: 56, 400km
Engine: RB26DETT of course
WHP= 550

Maybe to some or to most of you this might clearly explain it all, but for me, its all jibberish and I cant get a clear answer as to whether my car would be legal or not.
Obviously, as the car was imported from Japan, I dont know if it still classifies under a “Kei” car seeing as it changed ownership in a private sale, instead of being imported directly to one North American owner.

Now, some helpful links:

S.A.A.Q.= Societe de lassurance automobile du Quebec= the quebec car insurance society whicn is gonna test the car for mandatory safety checks and many other things to make sure the car respects the requirements to be put on the road in Quebec and be registered as a passenger vehicle in Quebec.

The details about the car (stock) :


John answers:

Hi mate great car you are going for there.I would have said before you added extra info that it would be fine to leave it RHD .
I would nip on the free forum,and ask on there.
I have spoke to some owners over the years from your neck of the woods.

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