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Porter's favorite trade for 2011...

Written by Subject: TAXES: Federal

Porter's favorite trade for 2011... Happy New Year: Enjoy your new taxes... RATtner gets off easy... The End of America is catching on...

We hope you enjoyed our holiday interview series in the Digest. (Based on the feedback, it appears you did.) Today, it's back to normal. If you'd like to re-read the interviews, just access the past two weeks of Digests on the S&A website archive page. And while we hope 2011 brings good fortune to you and your family, for the wealthiest Americans it brings something else...

As soon as the clock struck midnight on New Year's Eve, U.S. citizens with a minimum net worth of $5 million were instantly poorer. On January 1, 2011 Congress reinstated the most egregious tax in existence – the estate tax. With this new tax, the government will take 35% of your estate when you pass away. Combined with income tax, the government takes nearly 60% of your estate. Put another way, if you have $1 million in a retirement account, your heirs would only receive $422,000 after taxes.

And in 2013, the situation gets worse... The estate tax will revert to its pre-Bush levels of 55%. And the exemption level drops from $5 million to only $1 million (that $1 million includes your bank accounts, stock portfolios, house, art, etc.). Using that same $1 million example, the government now takes $730,000 in taxes. Your family is left with $270,000.

Whether the tax rate is 35% or 55% is irrelevant. The point is, the government is taking far too much of your estate (which has already been taxed multiple times). And it's never too soon to protect yourself. That's why we've been working with a top-tier New York- and Palm Beach, Florida-based firm to develop a product to help you not only avoid paying estate taxes, but actually double the amount of money you leave your heirs. If you implement this plan (which we've vetted with several law firms), your $1 million retirement account can more than double to $2.5 million.

This Retirement Protection Plan, as it's called, is only for a small number of our wealthiest readers, so I won't cover the full details here. But for that demographic, it could be the most profitable information they ever receive from S&A. We're hosting a conference at the Fontainebleau Hotel in South Beach, Florida on February 11 and 12 to discuss the full details. The plan's creators will be there. If you'd like more information on the plan and the conference, click here...

On December 30, while most of us weren't paying attention, former Car Czar and current fraudster Steve Rattner settled his long-running case with New York Attorney General Andrew Cuomo. Rattner got off way too easy. Instead of the $26 million fine and lifetime ban from the securities industry Cuomo originally sought, the Rat (who is worth hundreds of millions of dollars) settled for $10 million and a five-year ban. It's good the government is trying to curb fraud in the securities industry, but meaningless fines aren't the way to teach these thieves a lesson.

To see our most recent synopsis of the Rattner case, click here... And to read the infamous "boo" Digest, click here...

By now, you've certainly seen Porter's prediction for The End of America. His recent video was the culmination of years of research and observation, which led him to this conclusion... The U.S. dollar and economy are doomed. The U.S. government has printed more money and taken on more debt than it can ever repay. But the U.S.'s situation isn't unique. We've seen it play out many times throughout history. Whenever a sovereign nation becomes so indebted it can never hope to repay, it inflates. And the scary thing is, inflation is already running rampant. Take a peek at the below chart and its explanation from the most recent Stansberry's Investment Advisory.

What you see here is the credit of the United States, represented by the value of a 20-year Treasury bond (TLT) versus the major alternatives to money: energy as represented by coal (KOL), agriculture (DBA), and hard money as represented by silver (SLV).

This picture sums up the arguments and warnings we've been giving for years. We are not going to have a crisis. We are in a crisis right now. U.S. credit is now in permanent decline, while the value of the main alternatives to the dollar – energy, food, and real money – are soaring.

The market is giving you a warning. Inflation is here. We are in the midst of a monetary crisis. The facts are undeniable.Stansberry's Investment Advisory, December 2010

While some may dismiss our calls of inflation and much higher commodity prices as extreme... today, one of the most respected market forecasters in the game, Blackstone Group's Byron Wien, gave a similar prediction for 2011. Wien predicted gold will reach $1,600 an ounce. He also sees prices for agricultural commodities soaring. He also says oil stands a good chance of reaching $115 per barrel this year. Some forecasters are catching on...

In the latest issue of Stansberry's Investment Advisory, Porter divulges his favorite trade for 2011 – shorting shares of a deeply indebted operating firm with a product the economy doesn't have much use for today. He also reviews his entire portfolio and tells you which stocks to buy to protect yourself from the "End of America." It's a can't-miss issue. To learn more, click here...

New highs: Altius Minerals (ALS.TO), Cenovus Energy (CVE), WisdomTree Japan SmallCap Dividend (DFJ), Inter-Citic Mineral (ICI.TO), Northern Dynasty (NAK), Suncor (SU), Coca-Cola (KO), Paramount Gold & Silver (PZG), iShares Silver (SLV), ConocoPhillips (COP), Vanguard Natural Resources (VNR).

We know Porter and Byron Wien's predictions for 2011. What are yours? Let us know... feedback@stansberryresearch.com.

"I did enjoy the End of America interview but missed Part 1. Where can I find it?" – Paid-up subscriber Jack Finch

"THE 'END OF AMERICA' WAS EXCELLENT. IT WAS DIRECTLY TO THE POINT, EVEN IF THE POINT WAS NOT A POPULAR VIEW. CANNOT WAIT FOR THE NEXT SERIES. ANY WAY TO GET 'END OF AMERICA' IN ONE WRITTER ARTICLE?" – Paid-up subscriber George Dahl

Goldsmith comment: If you'd like to re-read the December 20-24 Digests in one place, click here.

Regards,

Sean Goldsmith
Baltimore, Maryland
January 3, 2011

Stansberry & Associates Top 10 Open Recommendations

 

Stock

Symbol

Buy Date

Total Return

Pub

Editor

Paramount Gold & Silver Corp

PZG

4/14/2009

454.05%

Phase I

Sjuggerud

Silver Wheaton

SLW

7/6/2009

409.42%

Resource Rpt.

Badiali

Silvercorp Metals

SVM

6/1/2009

310.67%

Resource Rpt.

Badiali

Northern Dynasty Minerals

NAK

3/2/2009

250.24%

Resource Rpt.

Badiali

EnCana

ECA

5/14/2004

193.78%

Extreme Value

Ferris

MAG Silver

MVG

7/6/2009

182.67%

Resource Rpt.

Badiali

Rite Aid 8.5%

767754BU7

2/6/2009

177.78%

True Income

Williams

Exelon

EXC

10/8/2002

141.31%

PSIA

Stansberry

Alexander & Baldwin

ALEX

10/11/2002

133.91%

Extreme Value

Ferris

ALMADEN MINERALS LTD

AAU

9/2/2010

133.19%

Phase I

Curzio

 

Top 10 Totals

 

4

Resource Rpt.

Badiali

2

Extreme Value

Ferris

1

Phase I

Sjuggerud

1

True Income

Williams

1

PSIA

Stansberry

1

Phase I

Curzio

 

Stansberry & Associates Hall of Fame

 

Investment

Sym

Held

Gain

Pub

Editor

 

Seabridge Gold

SA

4 years, 73 days

995%

Sjug Conf.

Sjuggerud

JDS Uniphase

JDSU

1 year, 266 days

592%

PSIA

Stansberry

ATAC Resources

ATC

313 days

542%

Phase 1

Badiali

Jinshan Gold Mines

JIN.TO

290 days

339%

Resource Rpt.

Badiali

Medis Tech

MDTL

4 years, 110 days

333%

Diligence

Ferris

ID Biomedical

IDBE

5 years, 38 days

331%

Diligence

Lashmet

Texas Instr.

TXN

270 days

301%

PSIA

Stansberry

MS63 Saint-Gaudens

 

5 years, 242 days

273%

True Wealth

Sjuggerud

Cree Inc.

CREE

206 days

271%

PSIA

Stansberry

KHD Humboldt Wedag

KHD

6 years, 7 months, 22 days

268%

Extreme Value

Ferris

 

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