Q4 Report

The website enterprise has been reeling lately. In May I moved copies of the money-making web pages back to Speedfactory, my dialup provider even though in January I switched to DSL. This gave me a bump in traffic and I also got page rank back, including at the new iGirder site. But in September, Speedfactory took the web page down and haven’t brought it back after months of me asking and them promising they would do it.

So anyway, traffic has come back a little, but it hasn’t been great. Around 100 visitors a day. In 2007 Sitemeter counted 137,000 visitors and in 2008 I got only 61,000. Extrapolate 100 visitors a day and I will be down to 36,500 in 2009. Amazon revenues have been way off too: $581 in sales in the 4th quarter, generating only $27.70 in commissions for me. In November I actually lost money, selling two small items, but getting a return on a more expensive item. Amazon will send a payment each month as long as you have more than $10 in earnings, so some months I don’t make that. In December someone placed an order of about 12 items, so it turned into a decent month with $15 in earnings (though by comparison the previous December saw $53 in earnings).

The best seller was the Turbo iPod charger with 3 sold, displacing the Maxell iPod battery pack, with 3 sales, but one return. The most expensive item sold was an $89 iPod to car stereo adapter. The most unusual thing sold was a pound of almonds.

AdSense has been off too, which is to be expected since I only have ads on the Sony and DeJumbler pages. So for the quarter I had revenues of $8 and it will be years before I see another $100 payment from Google. The nice thing is my advertising deal continues to pay $52 per month.

2009 Roth IRA

In January 2008 I put my Roth IRA contribution with Fidelity because they always have big taxable distributions on their funds and I thought it would be better to put any investments with them in an account that wouldn’t be taxed on those distributions. I still think that is a good idea, but my choices on where to put the money certainly didn’t work out. Last year I put money in a Small Cap Growth fund which proceeded to lose 42% of its value. The other part went to Fidelity Value Discovery which lost 37% of its value.

Continue reading “2009 Roth IRA”

Sundog

This evening at work Paul was visiting a couple of the groups and looked out my window at the sunset. He pointed out a sundog. I usually kind of ignore stuff like that, but he asked if I knew what a sundog is. I didn’t. He said I should look it up, so I went to Wikipedia really quickly and found an article about them. Only then did I actually look out the window, and there in the clouds about 20 degrees to the left of the setting sun was a bright spot. He said that was the sundog and it was caused by ice crystals in the cloud refracting the sunlight back towards us. The hexagonal shape of a snow crystal bends the light, similar to a rainbow (except rainbows are on the other side of the sky from the sun). Today’s sundog showed a little bit of color refraction, reddish on one side and bluer on the other side. He said there was probably one on the other side of the sun too, so we walked around to another side of the building to go look. Not quite as bright, but there was a spot in the clouds on the right also.

Heroes

I’ve been looking for stuff to watch on Netflix and one neat thing is they have lots of TV series on DVD. Two shows I’ve been thinking about are the Sci Fi channel’s remake of Battlestar Gallactica and NBC’s Heroes, which I never watched despite good reviews and word of mouth (I remember Kathy saying she liked it). I watched the first part of BSG this weekend, which was the opening miniseries (3 hours). It was good, so I’ll go ahead and get the rest of the disks. But this Sunday Target had Heroes on sale for $20, so I figured that was a pretty good deal. There are 7 disks and 23 episodes, so that’s less than a dollar an episode and now I can watch them on the train if I want. I watched the first two episodes and it seems like it could be pretty good. Season 2 was available as well, but because of the writers’ strike there were only 11 episodes, but it was the same price. So maybe eventually I’ll get those disks from Netflix.

Not worth it’s own blog entry, but this weekend I watched a documentary online from Netflix called Helvetica. Yes, it is a whole feature-length film about the font Helvetica. Made in 2007 on the 50th anniversary of the font, it covered the origins of the font in a modernist Swiss workshop, the impact it had and still has, and different graphic designers’ opinions about it. Some like its simplicity and the fact that it doesn’t draw attention to itself, others hate its ubiquity and how generic it is.

End of Year Scheming

Despite a catastrophic year on the stock market, I would like to contribute my 2009 Roth IRA limit of $5,000 in January. Since I don’t have cash lying around for that, I’d like to sell some other investments and take as big a loss as possible for 2008 and then use those proceeds for my Roth contribution in January. If possible, I don’t want to miss any trading days by having money in a bank account, given that any day could possibly be a big rally that I would miss. But I can’t take a loss on something in 2008 and buy something in 2009 without missing a day. Or can I?

One fund that I want to sell is Fidelity Small Cap because it has huge distributions each year (despite losing 40% of its value this year, it still distributed 1% in gains this year) that I then pay taxes on. So I want to sell all of that for $2,100 and realize a $1,500 loss. What I will do is sell it before the end of the year and move it that day into Fidelity Diversified International, a non-Roth fund in which I already have more than $2,100 (important later on). I will have to pay a short-term redemption fee of 2% to Fidelity on Small Cap’s December reinvested distribution of $8 (not a big deal) but all of the other shares have been held long enough not to incur such a charge (though a reinvested June distribution of $16 will incur a short-term instead of a long-term loss, not that it matters much since long term losses will cancel short term gains and/or regular income).

Then, in 2009 I can sell some of Diversified International directly into my Roth IRA. Diversified International has a short-term redemption fee as well, but Fidelity says that as long as I have enough older shares in the fund (which I do since I have more than $2,100 there right now), those will be sold first and I won’t pay a short-term redemption fee. Even better, because there is a loss there too, I will take a small loss (diluted by the shares bought at the end of December) on that sale for 2009 since I am using the average cost of the shares (I did the calcs today and figured a loss of $129 if prices don’t change until then).

For the rest of my $5,000 contribution limit I am going to sell some Nasdaq Powershares (QQQQ) that I have with Scottrade. In order to avoid sitting out of a rally, I am going to get some cash I have with Scottrade in check form right now and then sell the Powershares by the end of the year to replace that money. If I sell those shares on Dec 31, I won’t be able to buy anything in the Roth until Jan. 2, but I’ll only be missing a day. If I sold the shares and then waited for Scottrade to mail me the proceeds it would take a week or more.

So here’s the plan: before the end of the year, move Fidelity Small Cap into Diversified International (taking an ’08 loss), move cash in Scottrade to my bank account, and sell my Powershares at Scottrade (taking an ’08 loss). Then, on January 2, move $2,100 from Diversified International (taking a small ’09 loss) and $2,900 from my bank account into the Roth IRA.

The only question now is would it be to my advantage to sell some other mutual funds just to realize a loss and then reinvest that money in 2009? The IRS will let me offset up to $3,000 in income with capital losses and right now my net realized losses will only be around $300. If I sold about $8,000 of Vanguard 500 Index, I would realize about $3,000 in losses, which would be taken off of my income and earn a $930 tax rebate (25% federal plus 6% state). I see no reason I wouldn’t do that. If I reinvest it immediately into another Vanguard fund, I wouldn’t be out of the market for any time either and would not be subject to wash rules for selling something at a loss and then buying the same thing back in less than 30 days.