Conference nyoss1::market_investing

    i haven't read it yet, but it's on the list. another good book that got
    me on the right investment road is "the wealthy barber." 
    
    

    I 2nd the wealthy barber book. I wish I had a barber like that 10
    years ago.. :-). 

    I'll 3rd The Wealthy Barber!!  It's an excellent book, and also
    an EASY READ with good stories and humor.
    
    My brother gave copies to me and my sister. 
    
    A perfect beginner book.
    
    Lauren
    

    
    
      Who is the author/s of "The wealthy Barber"  ??
    
      Thanks,  Al

    "The Wealthy Barber, everyone's common-sense guide to becoming
    finanically independant."
    
    by David Chilton
    
    $12.95
    
    A great book, I might add.

    I looked over Mutual Fund for Dummies.  It looks good.  It has good
    examples of asset allocation strategies and funds to pick. 

    This is as good as a topic as any to ask a dumb question!
    
    I got into couple of funds rather late this year [Aug/Sep].  Shouldn't
    I switch to money market fund just the day before the distribution and
    get back in day after?  This is a Noload fund.  I don't think I will
    have much realized gain by selling but would have substantial tax
    penalty when the fund makes its distributition.
    
    Does this make sense?
    
    - Vikas

re: .7
        I think the answer is "no".  Here are three reasons.

        First, funds usually do not like to have money switched
around so abruptly.  Some funds have a rule that if you sell
within six months of buying, you can't get back in for some
period of time.  I'm going from memory, so check your prospectus
for details.

        Second, depending on the fund objectives, it might actually
result in higher tax liability.  Consider this: by selling a growth
fund, you'll be realizing a short-term capital gain (I hope) on your
shares, whereas if you held and received the distribution, the
distribution might be classified as a long-term captial gain instead.

        Third, by selling, and then buying again, you run the risk
of missing an increase.  If the distribution date is the beginning
of the month, you stand a higher chance of missing a gain.

-Austin

    Whether you should sell or not cannot be determined until you have more
    information.  .8 has provided you with some excellent reasons for not
    selling.  Before deciding, call the fund and get an idea of the amount
    they estimate will be distributed.  This is not foolproof, if you
    remember the Magellan fiasco last year.  If they have an answer, they
    should be able to break out the short term gains from the capital
    gains.  
    
    Also ask what the minimum is to keep the account open.  That can be
    substantially less than the minimum for opening the account.  If you do
    decide to sell, make a decision on whether you will go back in, say
    after 30 days, and stick to that decision.  (If you are looking at a
    short term loss, I believe there are wash rules that require that you
    wait 31 days, or you lose the deduction). I did what you are talking
    about last year.  But my only mistake was that I got cold feet on
    getting back in the fund.  1995 was not a great year for sitting on the
    sidelines.
    
    Bob

    I was thinking of getting back immediately after the distribution i.e.
    be out of the fund for couple of days only.
    
    - Vikas

Re .10

>    I was thinking of getting back immediately after the distribution i.e.
>    be out of the fund for couple of days only.

In that case I would think that you'd be covered by the wash sale rules.
Exactly how they apply in this case -- how you calculate your new basis
after the sale and repurchase, and what the other gotchas might be --
I'm afraid I don't know.

    re:.11
    
    .7 states the sale would result in a gain, so the wash sale rules don't
    apply.