Social Thread

Response to Occupy Wall Street

The Weavers — Mon, 21 Nov 2011 22:21:42 +0000

From what will probably be one of the few financial advisors at

Occupy Syracuse,

I suggest those who wish to “do something”;

Carefully consider a move to:

a fiduciary financial advisor
socially responsible investments
gold and silver as money*

For personalized fiduciary advice and assistance in divesting from whatever bugs you, contact:

Jason Eaton

Investment Advisor Representative

Social Thread
www.socialthread.com

Securities offered through Cadaret Grant & Co., Inc., member FINRA/SIPC. United Financial Services and Cadaret Grant & Co., Inc. are separate entities.

* Gold and silver are risky and may lose value. Get professional advice tailored to your situation.

Tax Memo to Clients – Central Fund of Canada

socialthread — Wed, 04 Feb 2009 15:50:30 +0000

Central Fund of Canada: Special Tax Form Required

If you hold (or held) Central Fund of Canada (Ticker: CEF ) IN A TAXABLE ACCOUNT you will need to file a special tax form in the first tax year which you own it (it is possible to file it late, but you need to ask the IRS for a waiver). At the time of writing, you need not file it each year.

You must file IRS Form 8621 which is available here: http://www.irs.gov/pub/irs-pdf/f8621.pdf

The information to fill it out for the 2008 tax year is here: http://centralfund.com/pfic/PFIC2008.pdf

On the IRS form most people will want to have the PFIC treated as a Qualified Electing Fund (QEF).

There are other options available to you including another method known as Mark-to-Market. I advise you to seek the council of a qualified tax professional, attorney or CPA in determining which would be most suitable for your situation.

The consequences of failing to file this form in the first year you own this security include, but are not limited to, paying a higher tax rate on your gains (assuming you have gains) when you sell this holding.

The issue is explained in detail in the prospectus for the fund:
http://centralfund.com/prospectus/2008%20Prospectus/CFOC%20Cdn%20Supplement%20and%20Base%20prospectus%20Sep%2024%2008.pdf

Please take this letter and the above forms to your tax preparer and ask them to provide you with individualized advice on the matter.

To aid you and your advisors in understanding the issue these links may help:
http://en.wikipedia.org/wiki/Passive_foreign_investment_company
http://www.altassets.net/casefor/countries/2002/nz3254.php
http://www.rpifs.com/offshoretax/otpfic.htm
http://www.centralfund.com/Financials.htm
http://www.goldenqueen.com/info.htm
www.ftb.ca.gov/aboutFTB/manuals/audit/water/ch10.pdf

Six Things You Can Do to Preserve Capital

socialthread — Mon, 19 Jan 2009 01:19:44 +0000

Reevaluate your risk tolerance – Investors tend to be more aggressive when markets are going up. Having a taste of the losses that are possible often tames one’s appetite for risk in their portfolio. You can think of risk tolerance as a continuum from very conservative to very aggressive. I use five categories: Very Conservative, Conservative, Moderate, Aggressive, and Very Aggressive. The longer you have before you plan to use the money and your tolerance for fluctuations in the market, are the primary factors that help you decide.
Check in with your advisor - as market and economic conditions change, your advisor’s recommendations may evolve. The advice you’ve received in the past may have been the best at the time. Markets are clearly in a different situation than they were a few years ago. If you haven’t checked in, do so.
Consider investments in sectors, industries, or companies with inelastic demand - under difficult financial conditions people and companies cut unnecessary expenses. If you’re invested in the necessities of life and commerce you may gain an edge. While we may be able to reduce our food and fuel expenses, most of us can’t eliminate them the way we can entertainment, new cars and other luxuries. Examples include energy (clean and otherwise) and commodities.
Consider using precious metals investments as insurance against inflation and currency devaluation - the US dollar (USD) index (a measure of the USD relative to other developed countries’ currencies) has declined at about 7% a year for the last five years. Add to this the federal government reported inflation of 3-4% (these statistics are suspect and real inflation may be more like 7-10%) and you have a strong case for seeking a reliable monetary unit. Gold and silver have served as money throughout history. In fact the US Constitution explicitly states that only gold and silver coin can be used as money¹. A point apparently lost on our contemporary representatives.
Make loans (buy bonds) only from the highest rated creditors with tangible assets to back up their obligations - in the middle of this credit crisis defaults are a reality. To manage the risk in your investments keep the maturities short; five years at the longest, 6 months is even better. A friend of mine put it well when she said, ‘you should own long-term bonds right now for about as long as you would hold a hand grenade with the pin pulled.’
Avoid the riskiest assets - the bulk of the problems investors face today are US centric: the housing bubble, the credit crisis, the falling dollar, etc. Traditionally US investments have been considered safer than those abroad and likewise the US dollar safer than foreign currencies. Well times have changed. While the situation in the US is dragging down stocks and economies around the world, in my assessment; stocks, bonds and currencies abroad may be less risky.

¹Article I, Section 8, Clause 5: The Congress shall have Power To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures. Article I, Section 10, Clause 1: No State shall coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debt.

These are general comments and ideas. This should not be interpreted as individual advice. Ask your advisor.