The budget proposal President Obama recently submitted had several provisions designed to increase government tax revenue. But one provision concerning retirement accounts triggered alarm bells for many Americans, raising fears that the government will confiscate your retirement savings.
Why people think confiscation is possible
The provision in the Obama budget calls for tax laws to "prohibit individuals from accumulating over $3 million in tax-preferred retirement accounts." Specifically, the budget refers to a complicated formula that involves figuring out how much money a person would need in order to buy an annuity contract that would guarantee annual payments to retirees of $205,000 for the rest of their lives. The proposal would raise $9 billion over the next 10 years, according to the budget's forecast.
Immediately, many analysts jumped to the conclusion that the provision might involve actually taking away money from retirement accounts. CNBC's Larry Kudlow described the measure in a special editorial in the New York Sun as an "incredible and arbitrary limit or tax on -- or even possible confiscation of -- IRA-type tax-advantaged savings account [emphasis added]."
Hot Stocks To Invest In Right Now: Innotrac Corporation(INOC)
Innotrac Corporation provides order processing, order fulfillment, and call center services to corporations that outsource these functions. It receives clients? orders through inbound call center services, electronic data interchange, or the Internet; picks, packs, verifies, and ships items; tracks inventory levels through an automated perpetual inventory system; and warehouses data and handles customer support inquiries. The company offers a range of fulfillment and customer support services to e-commerce/direct-to-consumer, retail, direct marketing, telecommunications, and business-to-business clients. Its fulfillment services include warehouse management, automated shipping solutions, real-time inventory tracking and order status, purchasing and inventory management, channel development, zone skipping and freight optimization modeling, product sourcing and procurement, packaging solutions, back-order management, returns management, and e-commerce consulting and integra tion. The company?s customer support services comprise inbound call center services, technical support and order status, returns and refunds processing, cross-sell/up-sell services, collaborative chat, and intuitive e-mail responses. It operates seven fulfillment centers and one call center in the continental United States. Innotrac Corporation was founded in 1984 and is headquartered in Johns Creek, Georgia.
Advisors' Opinion:- [By Lauren Pollock]
Corporate support service provider Innotrac Corp.(INOC) on Monday confirmed the company has been in recent talks regarding a potential takeover bid worth nearly $109 million. The company, which didn’t name the potential buyer, said it had been engaged in discussions for “a few weeks” under an agreement that would�result in investors receiving $8.20 a share.
5 Best Stocks To Watch Right Now: Green Mountain Coffee Roasters Inc.(GMCR)
Green Mountain Coffee Roasters, Inc. engages in the specialty coffee and coffee maker business. The company sources, produces, and sells approximately 200 varieties of coffee, cocoa, teas, and other beverages in K-Cup portion packs and coffee in traditional packaging, including whole bean and ground coffee selections in bags and ground coffee in fractional packs for use in at-home (AH) and away-from-home (AFH). It sells its products primarily in North America through supermarkets, club stores, and convenience stores; in restaurants and hospitality; and to office coffee distributors, as well as directly to consumers through its Website. The company also manufactures gourmet single-cup brewing systems and brewing equipment. In addition, it sells AH single-cup brewers; accessories; and coffee, tea, hot cocoa, and other beverages in K-Cup portion packs, as well as offers other licensed roasters to retailers, department stores, and mass merchandisers. Further, the company sells AFH single-cup brewers to distributors for use in offices. It provides its products under the Van Houtte, Br�erie St. Denis, Br�erie Mont-Royal, and Orient Express brands, as well as licensed Bigelow and Wolfgang Puck brands. The company was founded in 1981 and is based in Waterbury, Vermont.
Advisors' Opinion:- [By Ben Levisohn]
Now, another Israeli website, Globes, has said that Starbucks is the one negotiating with SodaStream. The amusing part of all this: Starbucks owns a stake in Keurig Green Mountain (GMCR), which recently partnered with Coca-Cola (KO) to compete with SodaStream, noted the Street’s Herb Greenberg on Twitter.
- [By Ishfaque Faruk]
Green Mountain Coffee Roasters (NASDAQ: GMCR ) has been on fire. The company's earnings and revenue growth aside, it has struck a megadeal with beverage giant�Coca-Cola� (NYSE: KO ) . The company's Keurig customer base is on the rise, and Green Mountain is now looking to address the cold-beverage market with more innovative consumer products.
5 Best Stocks To Watch Right Now: Peet's Coffee & Tea Inc.(PEET)
Peet?s Coffee & Tea, Inc. operates as a specialty coffee roaster and marketer of fresh roasted whole bean coffee and tea in the United States. It offers whole bean coffee and related products consisting of products for home brewing, tea, and packaged foods; and beverages and pastries. The company also provides brewing equipment for coffee and tea; paper filters and brewing accessories; and branded and non-branded cups, saucers, travel mugs, and serve ware. Peet?s sells its products through various channels of distribution, including grocery stores; home delivery, office, restaurant, and foodservice accounts; and company-owned and operated stores. As of January 2, 2011, it operated 192 retail stores in California, Colorado, Illinois, Oregon, Massachusetts, and Washington. The company was founded in 1966 and is headquartered in Emeryville, California.
Advisors' Opinion:- [By Chris Hill]
In 2012, the Germany-based�Benckiser Group�spent $1.3B to buy Peet's Coffee & Tea, as well as Caribou Coffee. On Friday, Benckiser announced that it's buying European coffee maker Master Blenders for�around�$10 billion. In the United States, Benckiser is closing 15% of Caribou locations, and�converting 20% of the stores into Peet's (NASDAQ: PEET ) . In this installment of Motley Fool Money, our analysts discuss whether Benckiser's big bet on coffee poses a threat to Starbucks (NASDAQ: SBUX ) .
5 Best Stocks To Watch Right Now: Paragon Shipping Inc.(PRGN)
Paragon Shipping Inc. provides shipping transportation services worldwide. The company engages in the ocean transportation of various drybulk cargoes and containers. Its fleet consists of 11 drybulk vessels with a total carrying capacity of 747,994 dwt. The company was founded in 2006 and is based in Voula, Greece.
Advisors' Opinion:- [By Roberto Pedone]
Another under-$10 name shipping player that's starting to move within range of triggering a big breakout trade is Paragon Shipping (PRGN), which is engaged in transporting drybulk cargoes, including such commodities as iron ore, coal, grain and other materials along shipping routes worldwide. This stock has been on fire so far in 2013, with shares up sharply by 114%.
If you take a look at the chart for Paragon Shipping, you'll notice that this stock just recently took out its 50-day moving average of $4.19 a share with strong upside volume. Shares of PRGN are showing relative strength today, despite the overall market weakness, which shows this stock is in strong demand at current levels. This move is now starting to push shares of PRGN within range of triggering a big breakout trade
Market players should now look for long-biased trades in PRGN if it manages to break out above some near-term overhead resistance at $4.90 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 25,811 shares. If that breakout triggers soon, then PRGN will set up to re-test or possibly take out its 52-week high at $5.70 a share. If that level gets taken out with volume, then PRGN could easily tag its next major overhead resistance levels at $7 to $8.35 a share.
Traders can look to buy PRGN off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $4.19 a share, or below its 200-day moving average at $3.74 a share. One can also buy PRGN off strength once it clears $4.90 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point. I would add to either position once PRGN takes out its 52-week high at $5.70 a share with strong upside volume flows.
No comments:
Post a Comment