The stock market is plunging, and it has been experiencing wide swings on a daily basis. Investors are not sure from day to day whether or not their profit will hold yet again another year. Stock market investors are getting nervous and no wonder, as many "new" investors are close to retirement age. It is estimated that with the growth of investment in 401K's and similar plans, over 48% of our total population are invested in the stock market.
Most investment counselors advise these investors to hang on and things will come around again (and indeed they probably will), but be sure to diversify your investments....always. Back Country Ranch believes in the strength of another market, the Alpaca Livestock Market. The stock market and the alpaca market are alike in the following ways: (1) They are subject to capital gains taxes, if held a required amount of time, and (2) They can both be traded as tax-free exchanges. They are, however, different in many more ways: Alpacas, (1) Are insurable, (2) Are tax depreciable over a five-year period, (3) Make their owners eligible for a section 179 deduction, a small business deduction for capital assets and, (4) Offer a lifestyle which is both peaceful and profitable. The Stock Market, doesn't offer any of these benefits. If you breed and raise your alpacas on your own property, your land is usually taxed at much less as a farm than it would be ordinarily, stocks don't lessen your land tax burden. If your stock splits on the market, you have more stock that is worth the same amount of money as before. If your alpaca dam has a cria (baby), your have two alpacas that can be worth twice as much. Through careful breeding, you can increase the value of the offspring of your starter stock. There is nothing you can do personally to make a stock go up in value. When you own your own alpaca herd, you are in control. As always, we advise potential alpaca purchasers to consult with their own tax consultant on any investment considerations.
The stock market is plunging, and it has been experiencing wide swings on a daily basis. Investors are not sure from day to day whether or not their profit will hold yet again another year. Stock market investors are getting nervous and no wonder, as many "new" investors are close to retirement age. It is estimated that with the growth of investment in 401K's and similar plans, over 48% of our total population are invested in the stock market.