Investment Risks and Returns: Rapid Fire

What this video covers

• The PRIME acronym for systematic risks (purchasing power, reinvestment, interest rate, market, exchange rate) and why market risk can never be diversified away
• How zero-coupon bonds and high-coupon callable bonds sit at opposite extremes of the interest-rate-risk versus reinvestment-risk seesaw
• Why return of capital is not income, how it reduces cost basis, and the tax treatment once basis reaches zero
• The exact tax-equivalent-yield formula, and when private-activity-bond interest triggers the alternative minimum tax (AMT)
• The 60-day rule for qualified dividends, the one-year line for short-term versus long-term capital gains, and the state-versus-federal exemption flip between Treasury and municipal bond interest
• The 5% policy as a guideline, not a cap, and its four major exceptions (mutual funds, variable annuities, new issues at fixed price, municipal securities)
• The temporary-hold clock for suspected financial exploitation of specified adults: 15 business days initial, then 25, then up to 55 with proper state reporting