Diversification Challenges in Today’s Market

Diversification refers to the process on reducing one’s overall risk by investing in different assets that have different characteristics.  If the various asset values do not move up and down together, then a diversified group of investments will have less variability or risk than the weighted average of its constituent parts.   Diversification works because the …

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Diversification Challenges in Today's Market

Diversification refers to the process on reducing one’s overall risk by investing in different assets that have different characteristics.  If the various asset values do not move up and down together, then a diversified group of investments will have less variability or risk than the weighted average of its constituent parts.   Diversification works because the …

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Permanent link to this article: http://betweenthenumbers.net/2011/01/diversification-challenges-in-todays-market-2/

New survey shows that 100 percent of people don’t mind participating in surveys.

No, the survey in the title doesn’t exist, but it was the easiest way to summarize the problem of response rates.  The reason why the hypothetical survey in the title got its result was because they first had to ask if they wanted to take a survey before they asked the survey question.  Thus, the survey reaches the …

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Permanent link to this article: http://betweenthenumbers.net/2011/01/new-survey-shows-that-100-percent-of-people-don%e2%80%99t-mind-participating-in-surveys/

IRS report provides candid assessment of major problems

Nina E. Olson is the current head of the U.S. Taxpayer Advocate.  This is a government office dedicated to helping taxpayers solve their problems with the Internal Revenue Service (IRS).  On January 5, 2011, she issued her required annual report to Congress.  The report is exceptionally long.  We summarize the major components and themes in …

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Permanent link to this article: http://betweenthenumbers.net/2011/01/irs-report-provides-candid-assessment-of-major-problems-2/

Congress’ PAYGO was anything but

Pay-as-you-go, or “PAYGO” rules require that new entitlement spending and new tax cuts must be paid for dollar-for-dollar with entitlement spending cuts or tax increases. On February 4, 2010, pushing for passage of the pay-as-you-go (PAYGO) legislation, then House Speaker Nancy Pelosi stated on the House floor, When I became Speaker of the House, the very …

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Permanent link to this article: http://betweenthenumbers.net/2011/01/nancy-pelosi%e2%80%99s-persistent-and-departing-words-are-perplexing/

Royalty Rule of Thumb Gets the Boot

The Federal Circuit ruled in Uniloc USA, Inc. v. Microsoft Corp. (January 4, 2011) that the widely used but fatally flawed 25 percent rule can no longer be part of reasonable royalty damages calculations. The rule has been widely used to calculate reasonable royalty damages for over two decades. Generally speaking, the rule pushed patent …

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Permanent link to this article: http://betweenthenumbers.net/2011/01/royalty-rule-of-thumb-gets-the-boot/

Congress’ procrastination means a delayed 2010 federal tax refund

Taxpayers did not benefit from Congress’s procrastination on deciding whether or not to extend the 2001 Bush tax cuts.  Despite having ten years to make a decision, Congress left it until two weeks before the extension would expire to address the issue.  As a result, the IRS must now reprogram its processing systems for provisions that …

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Permanent link to this article: http://betweenthenumbers.net/2011/01/congress-procrastination-means-a-delayed-2010-federal-tax-refund/

Congress' procrastination means a delayed 2010 federal tax refund

Taxpayers did not benefit from Congress’s procrastination on deciding whether or not to extend the 2001 Bush tax cuts.  Despite having ten years to make a decision, Congress left it until two weeks before the extension would expire to address the issue.  As a result, the IRS must now reprogram its processing systems for provisions that …

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Permanent link to this article: http://betweenthenumbers.net/2011/01/congress-procrastination-means-a-delayed-2010-federal-tax-refund-2/

Californian Legislature Ignores the Budget Mess, but Passes 725 Other New Laws

Happy New Year, Californians!   Thanks to a legislating orgy performed by your California legislature last year (that was paid for by you), 725 pieces of legislation went into effect January 1, 2011!  Let’s celebrate!  Californians are now compelled to ring in the New Year by getting up to speed on each of these new laws.  I shall …

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Permanent link to this article: http://betweenthenumbers.net/2011/01/californian-legislature-ignores-the-budget-mess-but-passes-725-other-new-laws/

Give Large Gifts before 2013

The estate and gift tax is one of the most dramatic aspects of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (HR 4853).  The estate tax provisions went into effect on January 1, 2010, but are only in effect for two years, meaning they will expire in 2013.  Although it is …

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