Investment and Finance

Mutual fund distributions are reported to the IRS and to you on Federal Form 1099-DIV or a substitute equivalent 1099-DIV statement.
Several types of of dividends can be reported on Form 1099-DIV.
Dividends that were reinvested by you instead of receiving cash will be listed on this form.

A closed end fund issues a fixed number of shares that trade similarly to shares of publically held corporations listed on the stock exchange.The daily price of a closed end mutual fund may be below or above the net value of its investment portfolio. This is different than a open end fund. An open end fund characteristic is the value of and the number of shares in your portfolio change daily as investors purchase and redeem shares.

Stocks when sold result in capital losses or capital gains. Short term capital gains are taxed at the same rate as ordinary income. Long term gains, that is stocks which are held for at least one year, are taxed at a maximum federal bracket of 15%. Some lower income individuals will not pay on the long term gains. Speak to a CPA in your area to find out how this applies to you.

A gift made pursuant to the Federal Estate and Gift Tax exclusion for gifts of $14,000 per year per person does create a period of ineligibility for Medicaid. You may make a gift of $14,000 or less per year to any person without creating a gift tax but the gift would still create a period of ineligibility for Medicaid which will be determined by utilizing the following formula. The dollar value of the asset transferred and dividing it by the average monthly cost of a nursing home as determined by the Department of Social Services for your area. This is not the actual average monthly cost of a nursing home in your area but the rate as established by the Department of Social Services. The actual cost is probable significantly higher. Speak to your local CPA or elder law attorney for more information on a gift or transfer and Medicaid.

Any transfer of assets to an Inter Vivos Irrevocable Trust will not automatically create a 60 month period of ineligibility for Medicaid. When a transfer to a trust is made the period of ineligibility will be calculated by taking the dollar value of the asset transferred and dividing it by the average monthly cost of a nursing home as determined by the Department of Social Services in your area. Not all transfers to a trust will automatically create a 60 month period. There can be transfers made to a trust which create periods of ineligibility of less than 36 months. Speak to your local CPA or an elder law attorney for more information on trust transfers and Medicaid.

You have probably heard that your bank deposits are insured by the Federal Deposit Insurance Corporation (FDIC). You may be surprised to learn that, while your money market deposit account is insured, your money market mutual fund is not. The SEC does not guarantee mutual funds. The FDIC does not guarantee mutual funds either, and this is true even if you purchased your mutual fund at a bank. In fact, when you purchase a mutual fund at a bank they are required to tell you that your investment is not FDIC insured and that your investment is not guaranteed by the bank.

A money market fund is a kind of mutual fund that invests only in short term securities such as bankers' acceptances, commercial paper, repurchase agreements, and government bills.

A money market fund is a kind of mutual fund that invests only in short term securities such as bankers' acceptances, commercial paper, repurchase agreements, and government bills.

Yes. You can check risk ratings and portfolio allocations in Morningstar Mutual Funds at http://www.morningstar.com