Great Depression 2.0 is Here


#1

Lol you thought 2008 was bad? Wait till you see what they have in store for us now.

2008 was a housing bubble the next crash is the everything bubble.

This incoming depression was unavoidable. No president could avoid this.

Every man for himself out there at this point, stock up on gold and water. God speed.


#2

Isn’t it a bit premature to say we are headed for a depression just because the markets fell between 3 and 4 percent in one day?

I agree the economy is headed for a major correction in the future but just one days loss isn’t enough to say so


#3

It’s okay, Henny Penny! The sky is not falling!


#4

Its been almost 11 years since the last recession. We’re overdue for a cyclical shift especially after kicking the can down the road from the last one…thanks Obama.


#5

Why isn’t Trump taking credit for this? :thinking:


#6

Do you even know what the Federal Reserve is ?


#7

Isn’t that where they hold Federals in reserve???


#8

I have been absolutely amazed that the manipulation of the central banks around the world have managed to hold it together this long… but likely, they have just been positioning themselves for the kill when they can no longer hold back the tide…


#9

Just checked my 401k balance. Asshole financial planner at Edward Jones had me tech heavy. I’m ready to start drinking.


#10

If you are young just ride it out. Your planner probably put a lot of your investments in tech because of the risk/reward of getting in early enough where you can enjoy gains and eat some losses before you are even close to retirement. Stay the course.


#11

I’ve got three words for you.

Pipelines, pipelines, pipelines.

Enjoy the dividends and thank me later.


#12

Kinda silly to be loaded up in one niche like that.


#13

Not for what’s coming it isn’t. Add them to your watch list and come back in 6 months and tell me I was wrong.

(Hint: I do this for a living)


#14

Pipelines have a little tax problem. MLP’s are taxed in every state they have lines.

Hope you hav a great tax person.


#15

If you never cash out and structure it to pass along to your heirs - those dividend checks will drop like clockwork.


#16

Excellent let the heirs deal with the taxes.


#17

If they follow the same strategy and don’t cash out then there is no problem. Margin living is also mighty fine.


#18

So the idea is to invest in pipelines, don’t reinvest the dividends, then use the margin on the basis of the available cash from the dividends?


#19

There are a few ways of doing it, but without getting overcomplicated (or breaking any rules) that would be an acceptable method. There are a number of others.


#20

Tax forms on distributions are filled out yearly.

Master Limited Partnerships (MLP) don’t pay any tax at the corporate level, provided their activities are considered qualified. Instead, quarterly distributions are passed directly to unitholders (investors); investors pay individual tax on their distributions. But MLP distributions are highly tax-advantaged and offer a significant tax shield for investors.

Because MLP distributions aren’t dividends, MLP unitholders don’t get a Form 1099 at tax time. Instead, unitholders receive a form K-1–a standard partnership form that’s typically mailed to unitholders in March.

But there are some big tax benefits to owning MLPs. Because of depreciation allowance, 80 to 90 percent of the distribution you receive from a typical MLP is considered a return of capital by the IRS. You don’t pay taxes immediately on this portion of the distribution.

Instead, return of capital payments serve to reduce your cost basis in the MLP. You’re not taxed on the return of capital until you sell the units.

In other words, 80 to 90 percent of the distribution you receive from the MLP is tax-deferred. The remaining piece of each distribution is taxed at normal income tax rates, not the special dividend tax rate. But the piece taxed at full income tax rates is only 10 to 20 percent of the total distribution; there’s still a huge deferred tax shield for unitholders.

An example can provide a useful illustration. Assume you own an MLP purchased for $50 and receive $5 in annual distribution payments, $4.50 of which is considered a return of capital. After one year, your cost basis on the MLP would drop to $45.50 ($50 minus $4.50); no income tax is paid on that $4.50. You’d pay normal income tax rates on the remaining 50 cents.