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In other words, they're not backed by any underlying assets or collateral. Tax Considerations -- It's important to consider the tax implications of baby bonds. Consider talking with a tax professional, and be mindful of how these taxes could impact your overall returns on investment.
The overall effective tax rate for the quarter was 21%. Of note in the quarter, we resolved one of the NPLs we discussed in Q3 of last year through a collateral sale. We expect the sale of that collateral over the next few quarters and have provisioned for that outcome in our Q1 results. Charge-offs in the quarter were $7.3
The administration said their purpose is not to go after the commercial industry, but they became collateral damage along the way because these AI chips are also important for military functions. They say that they all follow the rules, they all carry out duediligence. How do these chip makers not know where these servers are?
The problem: I didn’t have anywhere near $400,000 sitting in my checking account, and I did not want to sell a bunch of shares and trigger capital gains taxes (which in my case would be at least $60,000), just for this short term project. Use that as collateral to borrow an additional $100,000 to buy more shares (VTI or otherwise).
For the second quarter, pre-tax operating income came in at $219 million, which is up 46% year over year. The servicing team produced fantastic results, with $288 million in pre-tax income, up a massive 58% from a year ago. Our team generated a pre-tax income of $38 million, coming in at the high end of our guidance.
They go crazy and paint it with BS statements like: Tax-free guaranteed income Can’t lose money asset Upside potential with downside protection Privatized banking Be your own bank Remember that there is a floor to the crediting rate, but that doesn’t mean you can’t lose money. Here’s why that stinks.
Those managers experienced in duediligence with sufficient scale to build out funds with higher-quality collateral and low leverage in defensive sectors may be able to provide a better cushion. Concepts referenced in this commentary can and should be reviewed carefully with one’s investment and tax advisors.
And the investment bankers at that time were just — every time we went to a meeting on duediligence, is this a good company or not, all they wanted to do was talk about the fee splits. So I’m proud of our role in it. I mean, we gave it a hard study and said no, but it was a wild time. Well, there’s 400 of fees.
Somehow no one in duediligence ever asked them about any of this. And not being able to tell them or show them makes it harder for them to do duediligence to understand how it may have behaved. Alternatives and alternative strategies tend to be less tax efficient, more opaque. I’ve never been introduced.
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