June

James asks…
Why don’t we place a transaction tax on sales and trades of stocks and bonds?
The American stock exchange is the most stable and secure in the world (for the time being). Every weekday, hundreds of billions are exchanged without any sort of tax on the transactions. We pay sales and use tax when we buy other capital assets (then subject to capital gains or losses upon sale) but Wall Street is treated as a sacred cow. A transaction tax would serve to further stablize the markets since no one would be inclined to invest in short-term strategies. I believe a transaction tax needs to be studied and considered as a way of allowing our income tax code to be made much simpler than it is today. The so-called Flat Tax and Fair Tax (National sales tax) would only shift most of the tax burden to the poor. I mean do you really want to pay 10 or 20 percent of profit to the government when you sell your home?
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vanessa answers:
The FAIR TAX PLAN does not shift the tax burden on the poor.
It is a consumption tax, so the rich, who usually consume more, would be taxed more. Also, there is a stipulation that everyone would get a prebate check covering taxes up to the poverty level — so if a poor person buys their necessities only, they pay NO TAXES AT ALL. This program would stimulate our economy!
Please go to fairtax.org
(do not make statements about things that you do not properly understand please)

Helen asks…
Which is a better investment strategy: Term deposits or Stock market trading?
some term deposits offer up to 7% interest per annum with zero risk
can stock market trading do better than this?
i only have $10,000 to invest
not looking for anything spectacular , just some extra income for the family
what should i do?
thanks in advance for your advice
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vanessa answers:
Yes deposits

Joseph asks…
What’s the Best Strategy for Series E Savings Bonds?
I own a number of Series E Savings Bonds which have reached full maturity and are no longer gaining interest. Is there a way of converting them to another type of Savings Bonds that gain interest without paying income tax? Or, is the only option to start redeeming them maybe late in the calendar year and early in the next calendar year to spread the tax burden over two years and invest the money into something else?
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vanessa answers:
You used to be able to convert them to Series H bonds and get another 30 years of maturity. That ended in 2004. Since your bonds have stopped earning interest, cash them in whenever you need/want the money if taxes aren’t a problem, or redeem them over 2 years as you suggested.

Sandra asks…
My parents disappoint me! – I have a rental business?
Hi,
I am 38 yrs old. I am a real estate investor. I am just starting so need more money to invest.
my strategy is such that I generate nice income from first month of renting out apartments I buy.
My parents net worth is more than half a million dollars! also, they are in good financial situation, have steady retriement income. HOWEVER, they are not willing to give me even 50,000 loan that I will use to invest and also return to them from first month.
My mom explained her parents never helped her or that she never asked. so i got the impression it bothers her that I even ask because she wants me to work hard like her all my life (not smart like i want to). this really pisses me off.
perhaps I should not take it so personally but for some reason i can not stop thinking about it. It upsets me that they can do something that will help me for life and they do not! it would not even require them to do anything like work or something, just loan me money they will not use till grave anyway. (they retired). Am correct being so upset by my parents not willing to help me NOW but rather take their half million to their grave (or keep it till their grave and then inherit it to me and my brother when I am old too and do not really need their money!?).
What would you do and how would you feel? are they animals or good parents? I want 10% of their money AS A LOAN now, not 33% when they die (I have a brother and sister)
THANKS.
Thank you everyone! some very helpful smart comments! Regards, Neil
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vanessa answers:
I can’t really choose a side here, I’m afraid. I see where your parents are coming from: they want you to survive on your own and learn how to help yourself. On the other hand, a bit of parental help never hurts. As long as you don’t keep on relying on them in the future, just this once should be fine, especially if they are financially stable. Consider taking a loan from a bank. Since you claim you can pay it back in a month’s time, then I don’t think it should be a problem. Try a bank and see if you can manage without their help. Good luck.

Ken asks…
I have a rental business and My parents dissapoint me?
Hi,
I am 38 yrs old. I am a real estate investor. I am just starting so need more money to invest.
my strategy is such that I geerate nice income from first month of renting out apartments I buy.
My parents net worth is more than half a million dollars! HOWEVER, they are not willing to give me even 50,000 loan that I will use to invest and also retrun to them from first month.
My mom explained er parents never helped her or that she nevr asked. so i gt the impression it bothers her that I even ask becasue she wants me to work hard like her all my life (not smartlike i want to).
perhaps I shuld not take it so personally but for some reason i can not think about it. It upsets me that they can do something tat will help me for life without tem needing to do anything like work. (they retired). Am correct being so upset by my parents not willing to help me NOW but rather take their half million to their grave (or keep it till their grave and then inheirt it to me and my brother when I am old too and do not really need threir money!?).
What would you do and how woud you feel?
THANKS.
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vanessa answers:
They probably have have financial problems you should understand and half a million dollars is about a high midium class family in the us so stop arguing and start working.
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