Simple question for the investors here

[Pablo]

Thanks Pitzel. The only thing that will keep me away from them is their lack of reliability and sour reviews. Maybe they will improve with time.

http://www.elitetrader.com/br/index.cfm?action=view&R_FirmID=43&start=11
http://www.elitetrader.com/br/index.cfm?action=view&R_FirmID=43&start=6

As for the last five years - yeah a couple crap years. Actually look at small and mid cap funds over the last 5 years. Not so bad - hence my recent avoidance of a big chunk of money in S&P 500 type funds. I do buy and sell VTI, though.

Again thanks - good links.

 

[pitzel]

Pablo, *sigh*, there will always be people out there who can't make their own computers work properly, or have so much spyware installed that getting anything to work properly is a miracle.

Most of the complaints I read are from highly-aggressive daytraders, or from computer illiterates.

Just out of interest, do you guys in the USA get to deduct interest on money borrowed to invest? ie: margin interest, from your income taxes?

 

[Pablo]

No. Only home loan related interest is deductible. I suppose someone could borrow money against their home equity and invest it.....but that borders on legality......

 

[kenw]

"I suppose someone could borrow money against their home equity and invest it.....but that borders on legality...... "

nothing illegal about it. but risking your home on the market is a bit riskier than most can stomach.

 

[Pablo]

Hmmm....I don't think the statute is that clear, unless it has changed. I'm talking about the tax deductability - I know you can legally use the money for anything you want. It didn't used to be kosher to write the interest off for anything other than using the money for or into the home.....

 

[pitzel]

Interesting....in Canada, we can deduct every cent we pay in interest paid to borrow money to invest in assets that can produce income, ie: stocks, bonds, etc. Anything except for commodities, currency, and raw land.

Hence in Canada, borrowing to invest can be a very profitable proposition, even if your investments don't end up producing returns that are greater than the interest rate on the margin loans.

 

[Drew99GT]

Under US tax law, you can only deduct intrest on funds borrowed to purchase investments to the extent of net investment income. Just took a test on that crap yesterday

US tax law is a mindboggling mess of entangled equations that make as much sense as worrying about motor oil!

 

[Drew99GT]

Wavinwayne, you'll love doing your income taxes now if you start trading a lot!

 

[pitzel]

Drew99GT, no such restriction on Canada. In fact, a recent Tax Court ruling, upheld on appeal, recently even stated that you don't even have to buy dividend-paying stock to qualify for the deduction.