Questions from General Investment

Q: Your traditional IRA account has stock of GFH, which cost $

Your traditional IRA account has stock of GFH, which cost $2,000 20 years ago when you were 50 years old. You have been very fortunate, and the stock is now worth $23,000. You are in the 35 percent in...

Q: For 20 years through age 66, you contribute $3,

For 20 years through age 66, you contribute $3,000 to your 401(k) plan and earn 6 percent annually. If you are in the 20 percent income tax bracket, what will be your annual tax obligation when you wi...

Q: You are 60 years old. Currently, you have $10

You are 60 years old. Currently, you have $10,000 invested in an IRA and have just received a lump-sum distribution of $50,000 from a pension plan, which you roll over into an IRA. You continue to mak...

Q: Bob places $1,000 a year in his IRA for

Bob places $1,000 a year in his IRA for ten years and then invests $2,000 a year for the next ten years. Mary places $2,000 a year in her IRA for ten years and then invests $1,000 a year for the next...

Q: Bob and Barbara are 55 and 50 years old. Bob annually

Bob and Barbara are 55 and 50 years old. Bob annually contributes $1,500 to Barbara’s IRA. They plan to make contributions until Bob retires at age 65 and then to leave the funds in as long as possibl...

Q: a) An individual in the 28 percent federal income tax bracket

a) An individual in the 28 percent federal income tax bracket and 15 percent long-term capital gains tax bracket bought and sold the following securities during the year: What are the taxes owed on th...

Q: An investor is in the 33 percent tax bracket and pays long

An investor is in the 33 percent tax bracket and pays long-term capital gains taxes of 15 percent. What are the taxes owed (or saved in the case of losses) in the current tax year for each of the foll...

Q: Ms. Tejal Gandhi has decided that the stock of Small Cap

Ms. Tejal Gandhi has decided that the stock of Small Cap Inc is overvalued at $4 a share and wants to sell it short. Since the price is relatively low, short sales cannot be executed on margin, so Ms....

Q: You are in the 28 percent income tax bracket and pay long

You are in the 28 percent income tax bracket and pay long-term capital gains taxes of 15 percent. What are the taxes owed or saved in the current year for each of the following sets of transactions? a...

Q: You are in the 25 percent income tax bracket. What are

You are in the 25 percent income tax bracket. What are the taxes owed or saved if you a) Contribute $2,000 to a 401(k) plan b) Contribute $2,000 to a Roth IRA c) Withdraw $2,000 from a traditional IRA...