You may have noticed that the Bloomberg Aggregate Bond Index is off to one of…
An often forgotten element of mutual fund investing is that every year about this time funds will distribute capital gains and dividends to the the fund’s shareholders. In some cases the capital gain distribution can be as much as five to ten per cent of a funds share price even in years when returns are flat or down. Like this year.
The effects can be especially harsh now that top tax rates have risen and the 3.8% tax on net investment income is in play. There are ways to minimize the pain including, careful selection of funds, choosing the right vehicle to own funds and harvesting any losses in a portfolio. Here is a link to a recent article in the New York Times that sheds more light on the subject.
If you have questions about this or anything else related to your financial life, please don’t’ hesitate to give me a call.