Where Should You Invest Your Tax Refund?

Where Should You Invest Your Tax Refund?
Snap up This Cost Exempt Instructional Video on Trend Analysis

Benjamin Graham presented investors with a formula for calculating intrinsic stock value in 1962 and modified it in 1974. The 1974 version considers the following:

The formula is as follows: V = (EPS x (8.5 + 2g) x 4.4)/Y The way the investors were encouraged to use intrinsic value was to derive what is referred to as a Relative Graham Value, RGV. This is to divide the calculated intrinsic value of the stock by its current price. If the result, the RGV, is less than one the stock is overvalued and a bad investment and if the ratio is above one it is undervalued and may be a good investment.

If You Want to Reduce Your Tax Burden

In general one can invest IRA assets in common stocks, bonds, mutual funds, bank certificates of deposit, or real estate. All such investments through a Roth IRA versus a traditional IRA must meet the specific requirements of the Internal Revenue Service. As a rule there are more types of investments that can be made in a Roth IRA than in other types of tax advantaged retirement plans such as pensions, profit sharing accounts, 401Ks, etc. What is available may depend on the trustee of the account. For example, a bank may only offer CDs. A stock broker may only offer stocks. And, mutual funds will obviously only offer mutual funds.

Where Should You Invest Your Tax Refund
Video: The Profit-Making Magic of Candlestick Patterns at Major Moving Averages

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Profitable Investing Tips

Profitable Investing Tips

ProfitableInvestingTips.com is an informational website for men and women who want to discover trading & investing products and strategies and how to use them.

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