Every investor knows there are two primary financial markets, so-called “Bear” and “Bull,” and that historically, these alternate—the former characterized generally by falling prices; the latter by rising prices.
Tax loss harvesting is the act of selling securities to offset paying taxes on capital gains for a set year. The loss selling method gets done as a way to reduce tax liabilities in a high-income year. The extra money can then go into investing, and the long term compounding effects of the additional assets can be significant.
A tax professional can act similarly to a “conductor” in an orchestra. They direct the tune, the instruments used and how the end product sounds. They can make the appropriate changes as they see fit and understand how powerful their actions are in making the show.
There are very few concepts in financial planning that hold as much raw power to transform one’s life as systematic investing. But harnessing the potential extreme force behind this concept often proves tricky when it comes to actual implementation.
How Can CPAs Mitigate Their Client's Risk? Ask “How Does This Tie In With the Rest of Your Finances?"
Investment professionals and entities alike should always ask “How Does This Tie In With the Rest of Your Finances?”. It is an important enough question that even from service providers such as attorneys and CPAs, often does not get asked enough to their clients.
Recent, sweeping tax reform. Uncertainty about the U.S. Department of Labor’s recently enacted—(Or was it?)—Fiduciary Rule. The current turbulence defining the stock market, and ever-evolving capabilities of automation.
This notification for the week of 2/13/2018 is part of an ongoing series of updates intended to keep you informed about the changes occurring in your 4Thought Financial Group separately managed accounts (SMAs) each week. We may provide general commentary, as well as planning techniques and ideas. Make sure to discuss with your advisor whether these are applicable to your situation before taking any actions with regards to your financial plan or investment portfolio.