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Posted on December 16, 2022
As the old adage directs, when you are dealt lemons, make lemonade. It’s time to be opportunistic.
We all know it has been a volatile year in the markets. As 2022 draws to a close, we are in the process of utilizing any losses our clients may have experienced in taxable accounts to trim positions which have out-performed.
Here’s what you need to know:
- The process we employ is an IRS approved strategy, known as Tax Loss Harvesting. We will realize losses in taxable accounts to offset gains.
- The objective is to re-position accounts without significant unwanted tax liability.
- Tax loss harvesting allows us to maintain an allocation appropriate for each client’s objectives, risk tolerance and time horizon.
- The proceeds of any sale will either be reinvested in a new position, with similar aims, or redirected to an existing position. As always, we will be guided by each client’s Investment Policy Statement (IPS).
- The Wash Sale Rule prohibits us from buying back the same security for at least 30 days.
- The Wash Sale Rule also mandates that the two investments—the one sold and the one purchased—be distinct.
The IRS can negate the tax loss for failure to follow the rule.
Many of our clients will see increased trading activity on their December statements. The trades will include both sales and purchases.
Tax loss harvesting is a thoughtful way to take advantage of an unwanted investment result, turning a negative into a positive. In other words, making lemonade.
If you have any questions, we will welcome your call.
Todd
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Posted on December 16, 2022
Turning Lemons into Lemonade
by C. Todd Fry, CIMA(R), CFS
As the old adage directs, when you are dealt lemons, make lemonade. It’s time to be opportunistic.
We all know it has been a volatile year in the markets. As 2022 draws to a close, we are in the process of utilizing any losses our clients may have experienced in taxable accounts to trim positions which have out-performed.
Here’s what you need to know:
The IRS can negate the tax loss for failure to follow the rule.
Many of our clients will see increased trading activity on their December statements. The trades will include both sales and purchases.
Tax loss harvesting is a thoughtful way to take advantage of an unwanted investment result, turning a negative into a positive. In other words, making lemonade.
If you have any questions, we will welcome your call.
Todd
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Posted on December 16, 2022
12 Last-Minute Tax Tips for 2022
by C. Todd Fry, CIMA(R), CFS
Act now to save money on 2022 taxes.
Key takeaways
As the end of the year approaches, the clock is ticking for important choices that could help lower your tax bill for 2022. With inflation cutting into paychecks and taxes scheduled to increase after 2025, you’ll want to snag every tax break you can now. Here are a dozen tax tips to consider before year-end to help trim your 2022 tax bill—and set you up for success in the years ahead.
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Posted on December 16, 2022
New Year’s Financial Resolutions: Get Your Finances in Shape for 2022
by C. Todd Fry, CIMA(R), CFS
Reshape your finances in the year ahead with these five resolutions.
If you’re someone who likes to make resolutions on New Year’s Day, you already know how hard it is to stick to them. Here are five resolutions that can help increase your financial fitness and hopefully inspire you to stay committed to them in the new year.
An added bonus is that the steps below are also steps we suggest that all investors take as part of creating a financial plan, the foundation, we feel, for any investor looking to own, plan for, and then take the steps needed to save, invest, and reach their financial goals.
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Posted on November 17, 2022
Guide to Recessions: 9 Key Things You Need to Know
by C. Todd Fry, CIMA(R), CFS
You have likely heard the ‘R’ word several times recently. Many analysts, CEOs and investors believe the chances for a Recession next year are increasing. With all the chatter, now may be a perfect time to examine what the term means, the typical catalysts, how long it may last, and the impact it could have on consumers and investors.
Guide to Recessions: 9 Key Things You Need to Know _ Capital Group (002)
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Posted on November 17, 2022
10 Tax Planning Tips for the End of the Year
by J. Eric Rice, CFP(R), ChFC(R)
Tax planning between now and the end of the year can have a significant impact on how much tax you have to pay next April.
Financial decisions you make between now and the end of the year can have a significant effect on how much tax you have to pay next April. This is particularly true if you’re saving for retirement, itemize deductions, or hold investments outside a retirement account.
But time is running short. It will be too late to cut your tax bill using most of the tips we’ve assembled below after we ring in the new year. So check out our list right away and get cracking
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Posted on November 17, 2022
The Fleeting Free Lunch of an Inverted Yield Curve
by C. Todd Fry, CIMA(R), CFS
Fixed Income is once again an attractive investment thanks to steep increases in the Federal Funds rates this year. Short term yields, however, have outpaced their longer-term counterparts, leading to what is know as an inverted yield curve. Many investors are eager to secure the higher yielding, short-term issues. Are they being short-sighted?
The Fleeting Free Lunch of an Inverted Yield Curve
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Posted on October 18, 2022
Student of the Market
by C. Todd Fry, CIMA(R), CFS
Student of the Market (October 2022)
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Posted on October 18, 2022
What Property to Put in a Living Trust
by J. Eric Rice, CFP(R), ChFC(R)
For the greatest benefit, hold your most valuable property items in your living trust.
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Posted on October 18, 2022
When will the Bear Market End?
by J. Eric Rice, CFP(R), ChFC(R)
As stocks and bonds continue to tumble a week after the Federal Reserve’s latest rate hike, investors are understandably asking how long this painful bear market will persist.
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Posted on September 19, 2022
Can Midterm Elections Move Markets? 5 Charts to Watch
by C. Todd Fry, CIMA(R), CFS
In a year when soaring inflation, the war in Ukraine and a bear market have commanded headlines, the U.S. midterm elections risked becoming an afterthought. But now the election is coming back into focus. And with good reason. Capital Group political economist Matt Miller believes 2022 could be one of the more consequential midterm elections in U.S. history.
“Make no mistake, every move in Washington this year has been carefully calculated with the midterms in mind,” Miller says.
But while control of Congress may be at stake, do midterm elections have any effect on equity markets?
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