Tuesday, August 5, 2014

So you want your own capital back and pay taxes on it?

It has been pretty sad over the past 5 years or so as high dividend stocks have preyed on the desire of senior citizens to get a fair return on their hard earned savings...it used to be that a bond book, and a cd card...ya kind of like a holy card, were kept at the bedside of seniors nationwide....Every since the crash, and the easing of the money supply, and the 1% yield found at banks....seniors have been scrambling to find decent yields...and if they went to attractive stocks, they might find stocks that had yields as high as even 12%....but if seniors and investors had looked closely they would have noted that in the statistics of the company profile, the earnings of the company could not cover the dividends disbursed, and eventually when the company cut the dividend, the stock plunged....but no worry, the investor still had to pay taxes on the dividends paid....so all in all...a lose-lose deal...A word to the wise...if it looks too good to be true...it probably is...and as a p.s.....never purchase any investment with the word "trust" in it...as in "royalty trust."