Ask Rande 10,000+

Top 596. Nov 30, 2001 9:54 PM

» Rande - Re: deadline?

In response to message posted by Kirk:

This is the part that might have been confusing for some:

sell tomorrow and you can buy the same security back on the last trading day of the year and avoid a wash sale... wait another day (monday) to sell and you have to wait until 2002.

Today's deadline had nothing to do with selling for a tax loss in 2001, you can do that right up to the last trading day of the year and it doesn't matter if you buy back the security in 2002 after 31 days or not. The only significance of today was with respect to doubling up -- if you wanted to double up and still be able to sell your original position by the end of the year to take the loss in 2001 today was the deadline.

Whether or not anyone can take advantage of such potential patterns or whether the market is too efficient to do so is a matter of debate. Seems to fall into the category of buying heating oil futures because winter is coming as far as I can tell.

-- posted by Rande

Top 597. Dec 7, 2001 8:40 AM

» Rob_Larsen - Actuarial table

Good morning, Rande

Do you know a web site where I can enter my age and find out what the government or insurance company think my life is worth and tells how long I should live?

Thanks,

Rob

-- posted by Rob_Larsen

http://www.lifeexpectancy.com/software/s...

Top 598. Dec 7, 2001 9:01 AM

» Rande - Re: Actuarial table

In response to message posted by Rob_Larsen:

Rob,

Here's some free software (you have to register):

Health and Human Resources life expectancy tables:

http://www.efmoody.com/estate/lifeexpect...

IRS (Treasury) Life Expectancy Tables from Pub 590 (see appendices):

http://www.irs.gov/prod/forms_pubs/pubs/...

-- posted by Rande

Top 599. Dec 7, 2001 9:14 AM

» Rob_Larsen - Re: Re: Actuarial table

In response to message posted by Rande:

Thanks, Rande......There is never a doubt that you will always come through :-)

Rob

-- posted by Rob_Larsen

Top 600. Dec 8, 2001 1:46 PM

» Moe_Berg - Do Enron Employees have a 401K Claim against PBGC ?

Can you research this questions and report back here?

-- posted by Moe_Berg

Top 601. Dec 9, 2001 6:32 AM

» Rande - Re: Do Enron Employees have a 401K Claim against PBGC ?

In response to message posted by Moe_Berg:

Moe,

The Pension Benefit Guaranty Corporation (PBGC) is a federal agency established by ERISA, intended to underwrite the suffciency of assets under defined benefit plans. I'm not sure if the PBGC would come into play over a 401k (defined contribution plan) issue, though ERISA would likely be involved if there were any code violations. Based on what I've read it seems there may be some action against the company over individual company stock holdings in the 401k with respect to participants' ability to diversify. I'm not a benefits expert, but I would be surprised if there was any federal bailout of a defined contribution plan. As far as getting any money out of the company, I guess that will depend on whether any wrongdoing can be proven and, if so, how much is left over to claim once the lawyers are done getting paid. Not something I'd be holding my breath over.

-- posted by Rande

Top 602. Dec 9, 2001 7:36 AM

» Kirk - "Pension Accounting"

Interesting article Rande.
http://www.nytimes.com/2001/12/07/busine...

But we are not dealing with a reasonable accounting system. We are dealing with pension accounting, American style. The amount of expense, or profit, that companies report from their pension systems are not based on the actual profits earned by investments in the pension fund. Instead, companies report profits as if the pension investments earned what was assumed when the year began.

Is this something that should concern the average Jane?

-- posted by Kirk

Top 603. Dec 9, 2001 8:31 AM

» Rande - Re: "Pension Accounting"

In response to message posted by Kirk:

The "average Jane (or Joe)" in private industry these days is lucky to have a defined benefit pension plan. For employees of solid, stable, blue-chip companies it's not something I'd be inclined to lose any sleep over. For most of us, successfull retirement is a matter of fending for ourselves through defined contribution plan and personal savings. Anything else these days, including pensions and Soc Sec, should be considered as gravy. Not your father's (grandfather's) retirement scenario.

-- posted by Rande

Top 604. Dec 9, 2001 8:59 AM

» Bob_in_CowTown - Re: Re: "Pension Accounting"

In response to message posted by Rande:

Speaking of GRAVY - Abuse of Pension Accounting is alive and well in Buffalo NY based on article about 2 weeks ago in the Buffalo News.

Seems Joe Detective working for the Buffalo PD was in his last year before retirement. Retirement pension is based on your "last year" earnings working for the PD. Regular wages for this detective is $57k excluding OT. Retirment income would normally be 1/2 of $57K or $28.5k pension for the rest of his life.

In an effort to boost his retirement earnings this detective volunteered for alot of OT in his last working year, bringing his wages to $120k for that one last year. Now his retirement is 50% of the $120k, so his pension is $60k for the rest of his life. $4k more than what his regular income was while actually working.

Now, thats a RAPE of the Buffalo NY taxpayer. No wonder Buffalo is broke and experiencing city govt and educational lay offs.

Seems this last year infalting of one's income is quite pervasive in the Police Depts and Fire Depts in Municipal Governments. I heard, but have not verified that the same happens in municipalitys in Sacramento Ca all the time.

Don't get me wrong. The Police and Fire Departments have a tough job and place their lives on the line when dangerous situations occur. The abuse of the pension systems however, is something I don't think John Q public is aware of.

BIC

-- posted by Bob_in_CowTown