What are The Box 8 Dividends…

By | August 16, 2013

What’s the best revenge on the IRS? How about collecting up to three fat income checks per month… truly tax-free? That’s right. It’s 100% legal.

Let us find out, if this is any better than our 401 k or IRA, as it’s quite natural, any promise of a Tax Free Monthly Check does always sound exhilarating to any of us at its first undertone.

And any income proposition that a newsletter vendor calls ‘tax-free’ has to be nasty, and it has to be obfuscated right? Yes exactly that’s what it is.

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As we dig into some hints from the Agora Financials ad raving…

“You DON’T Have to Be Rich to benefit “‘Box 8 Dividend’ income checks are easy enough for anybody to collect, even if they’ve got a more modest bank account.”

Allow me to break the ice here! Well, The Box 8 Dividends rant is about our own boring Municipal Bonds which indeed are Federal Tax Free (occasionally you may have to pay taxes depending on your dwelling).

These are indeed closed end Muni Bonds, Muni Bonds by the way are mostly held by individual investors, who want safe and tax-free income, these instruments offer.

Even though there have been a few instances that made muni bond holders nervous, owing to some high profile municipal bankruptcies in the last few years, including Jefferson County, Stockton, LA, and CA. But still the default rate is minimal with Muni Bonds.

Nonetheless Neil George quite obviously is not talking about simple Municipal Bonds here, no matter what your tax bracket is, you seldom earn 10 or 11% tax-equivalent yields from a plain vanilla muni bond.

So what the heck he is pitching here? More cues please…

“Even Better Than 11% Dividends “Not only does this first ‘Box 8′ move offer nearly an 11% equivalent yield, but it also offers gains — just like a stock — and some pretty impressive gains too.

So how do you get to that Magic Figure 10-11% dividends, paid monthly?

With leverage of course, or more precisely there are a bunch of leveraged closed end funds, that do the weight lifting for you, these are run by respectable asset managers that pay their distributions on a once-a-month basis. Neil George is obfuscating it, and is averse to express the three “plays” he is recommending in this tease.

Of course if you have a willingness to subscribe to Neil George’s ideas you are buying his abilities as a investment manager to manage the portfolio for interest-rate risk, and income. However the “Box 8 Dividends” is Mumbo Jumbo and promotional hype to get you interested.

Update 26 November 2013:

Well, it seems to me they are touting America’s First Tax Exempt (ATAX) it’s a no brainer investment. They are based in Omaha, run by experienced managers who have invested their own money in it. They invest in and manage city sponsored housing apartments. Not very much profitable but they have a very nice cash flow. Traded on NYSE at about $6.50 per unit where the yield is about 7.5%.

I still say it’s very good for folks who aren’t sure what to do with their money after all they are asking you $39 for all the research. I must tell you Neil George’s newsletter could not be written off as a scam by any standard.

But I really botched to figure out the Rationale behind the catchphrase ‘The Box 8 Dividends ‘in this ceaseless sales pitch. It’s your Money and it must be your Call. The CEFconnect web site offers insights at this and is of some help.

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9 thoughts on “What are The Box 8 Dividends…

  1. james

    I am so sick of getting ripped off by our government and having to put up with these scammers too. Where does it all end? Can I put my hand in your pocket? Might as well, everyone else is trying to get in. FM.

    Reply
  2. RAMAKRISHNA REDDI MUTTANA

    A 6% tax free for a tax bracket of 38% might be close to 10% yield! but still the Neil’s presentation is full OF it!AND SOME innocents may get sucked into his some what deceiving schme, and pay all the subscribing innocently!

    Reply
  3. oldman

    Please let me know where you can get box stock dividend or municipal bonds.

    Thank you,

    Reply
    1. Anum Post author

      If you were Goggling for info on the box 8 dividends, you probably already know the teaser ad is rippling from Lifetime Income Report’s desk. If they got you interested enough, subscribe to their services and they tell you precisely what kind of muni bonds they are pushing.

      Reply
  4. Jay3

    Why does this guy talk for over an hour and not really tell you anything??

    Reply
    1. Anum Post author

      Well, that’s the copywriter’s job mate, he is doing his job. Don’t be surprised! You will have to subscribe to their newsletter to know what they are actually trying to sell you.

      Reply
  5. David M. Doan

    I have been in the private investment market for over 20 years, and this presentation for N. George sounded too good to be true. I never got the the end of their presentation, but listened to it for 45 min until I had to do something else in my business, but NOW I understand the scam. As always, if it sounds like a winner, pull out all the stops and do your research to find out more about it before you invest.

    Reply
  6. Jeff

    There are “tax Free” municipal bonds out there, but ultimately if a person has nothing but “tax free” investment, that investor will not escape the alternative minimum tax, aka “AMT”.

    And as of just a few years ago, when filing your taxes, the IRS requires you do your taxes by using two calculations: the one they have laid out on the tax return form and the AMT method. The rule is, whichever outcome yields a higher tax owed, you must pay the greater tax owed, not the lesser.

    So this claim you can collect three checks per month tax free, and owe nothing is bogus, and will land one in a lot of trouble with the IRS. You will not only owe back taxes on all the money you skated by on until busted, but there will be penalties and interest assessed.

    In the end, you’ll owe the IRS well after your death, and they will come to harvest your estate, or whatever is left of it, and put it up for public auction to settle your debt.

    And where will this so-called financial whiz kid be? Somewhere taking a whiz with the money you paid for his advice.

    Reply

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