WSJ: If Obama wins, you might want to cash in your Apple stock before year end

“Well, we finally have a Democratic nominee. Yes, a lot of water still has to flow under the bridge. The only thing we know for certain right now is that a new president and a new Congress will be sworn in next January,” Brett Arends reports for The Wall Street Journal. “But as Barack Obama is the man of the hour, it’s a reasonable time to ask what his election might mean for you and your family’s money.”

“This is not a political column, and in this space I take no stance about who should or shouldn’t win. I am only concerned with what you should do to prepare for contingencies,” Arends notes.

“The Bush tax cuts, which came into effect in 2003, are already set to expire in 2011. And politics, as well as the huge budget deficit, make it likely they will do so. That will probably mean big changes to the tax rates on capital gains and stock dividend income, among others. Senator Barack Obama has already acknowledged that he may be willing to raise the top rate on long-term capital gains still further, to 28%. That was the rate in 1997. Today it’s just 15%,” Arends reports.

“So if you are sitting on a huge profit in, say, your Apple stock, if the Democrats win in November you might want to cash it in before the end of the year,” Arends reports. “‘Go ahead and sell it’ says Benjamin Tobias, a financial planner in Plantation, Fla. ‘Pay the 15% tax, and put a happy face on the check to the IRS because you’re only paying 15%. Next year, who knows what you’ll be paying?'”

Arends also notes, “It’s way too early to make any moves based on the election, and you should probably seek professional advice before taking any bold steps with your money. It is also worth adding that a number of these changes might end up being brought in if John McCain becomes president as well. The one thing I am willing to say with some certainty is that the 15% tax rate on dividends and capital gains isn’t going to be cut.”

Full article, in which Arends also covers making changes to your IRAs and other tax-deferred accounts, along with moving some of your other investments into tax shelters such as low-cost variable annuities, here.

[Thanks to MacDailyNews Reader “Broker” for the heads up.]

218 Comments

  1. save 10-15% now and miss 10,000% in future gains

    get real ……. AAPL is going to crush for years

    and there is a real change happening that is just starting >>AAPL $$$$$$$$$$.. I will hold mine thank you very much!!! ass-hats who want to steal

  2. And they said that Murdoch wouldn’t change the WSJ.

    How scared are the vested interests in the USA, when the WSJ publishes such an unmitigated pile of unsubstantiated, alarmist, propagandist crap!

    Seriously, MDN: Grow up!

  3. Tax cuts create greater tax revenues for the government. I understand this may seem incongruous at first glance, but it’s not. Prosperity breeds prosperity.

    A fun little quiz: Match the people (Rush Limbaugh, Winston Churchill, Ronald Reagan, John F. Kennedy) to the quotes below:

    1. “Republicans believe every day is the 4th of July, but the Democrats believe every day is April 15.”

    2. “If you’re not a liberal at 20, you have no heart, and if you’re not a conservative at 40, you have no head.”

    3. “An economy hampered by restrictive tax rates will never produce enough revenues to balance our budget just as it will never produce enough jobs or enough profits… In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.”

    4. “No nation ever taxed itself into prosperity.”

  4. “It’s way too early to make any moves based on the election, and you should probably seek professional advice before taking any bold steps with your money.”

    If you’re listening to Brett Arends for advice on money, technology, or, really anything at all, seek professional help.

  5. Well if Obama is a Mac user, then maybe our government will switch to Macs. Thats alot of Macs. Then more gateways open to the enterprise. Apple stock goes through the roof and the expired tax cuts are null.

  6. Dangerously close to OFF TOPIC!

    Mr. Reeeeeee sez:
    “…this prediction will have as much credence as Bush’s fantasies of Iraq”

    A couple points: Bush never had a fantasy. He had the Iraq Invasion Manifesto written by William Kristol and his cronies as part of the Project for the New American Century sitting in front of him as a blue print for the entire moronic idea. He also had a hoard of PNAC members in his cabinet. PNAC themselves talked about taking advantage of a catastrophic event to push forth their dimwit manifesto. They also talked about what rubbish to propagandize to the public to fool them into buying the entire charade. No fantasy in site, just outrageously poor judgement, the worst gang of advisors in Washington (dubbed ‘The Crazies’ but President Ronald Reagan) and a man willing to perpetrate incredibly destructive, illegal and unconstitutional acts for the sake of his higher priority of making his pals happy, versus making US citizens happy.

    Second, this is the usual greed oriented negative capitalist attitude in the USA these days. Make a buck any which way you can and damn the consequences. Thus the USA slips into irrelevance in the world and economic collapse. Support American corporations? Nah. Just make a buck any way possible. Thank Apple for being the single most innovative company in the world these days? Nah. Make a buck. It’s inevitable, no surprise, obviously destructive. But it is the inevitable result of our culture teaching people to live for short term monetary gains at the expense of personal responsibility for their actions. It’s so sadly inevitable these days that it puts me to sleep. I dream of being a member of a more evolved species.

    Back to business…

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.