Wednesday, December 01, 2004

More thoughts on taxes thanks to Leisel

You may recall Leisel had a question about taxes. I kept thinking about her question yesterday with a nagging thought that I was missing something from her post.

I was. I think another point she correctly made was this. Every time I make a trade, I take as much as I can and buy another stock. In theory, I hope to repeat this successfully over and over again.

But what happens when it's tax-time? What if my money is tied up in a position? The questions she raised made me realize that I need to reserve part of the profits so that enough money to pay the taxes is free and available to use. I don't want to be forced to sell at a loss just because it's time to pay up!

Comments are great and very much appreciated!

What's a 6K filing?

I looked at NGPS (my current position) and it was down at the closing. I also noticed an after hours trade that was around 40 cents lower and wondered if something was going on. I was looking at NGPS on Big Charts and there's a link right there for news on the company. They had completed a 6-K filing. I wanted to try to research it but my husband needed the computer. I got busy cooking and honestly forgot about it until this morning.

Professional "money" people are probably either dying laughing or shaking their heads in disbelief. I'm sharing everything that's happening along the way for my own benefit and so others can see the kinds of things you may experience.

A busy day is coming up - Wednesdays are crammed full from early morning till around 10 at night so there won't be any time for researching today. We attend church on Wednesday nights and our housekeeper comes on alternate Thursdays. That means after getting home late, my husband and I perform a ritual called "Room Rescues" that we learned from FlyLady, a free Internet coaching service for homemakers. We set a timer for 15 minutes then work on one room like maniacs straightening up, etc. We always beat the clock and then run to the next room. I know it sounds weird but our Cyntia (and she has become a part of our family - we love her) can't do her job if we have books, toys and clothes strewn everywhere.

I'll check on NGPS from work and if it seriously starts breaking down (price going down on unusually high volume), I'll sell it.