David@valuealigned.com
1-732-800-2375

Berk's Blog

Capital Gains Distributions: Another Mutual Fund Secret, Magnified

 

If you’ve been reading my blog, you’ve probably learned by now that mutual funds have hidden fees.

But that’s hardly their only dirty little secret.

Mutual fund managers not only bury fees within your prospectus’s fine print, but they also make it difficult for you to find essential data that could indicate large capital gains distributions – and large tax bills – coming your way.

capital-gains-distributions

Seeing Mutual Funds for What They Really Are

Mutual fund managers aren’t allowed to hide certain key information from you – but they’re not required to publicize it either.

To find out what’s really going on, you could get out your magnifying glass and spend your holiday digging for data.

Or you could take the more productive route of transitioning your money to separately managed accounts in stocks of great companies. Separately managed accounts are important because they ensure that your capital gains (and losses) are proportional to your actual investments – saving you an unfair tax bill come April.

Switching to Separately Managed Accounts

I’ve been helping people like you avoid the pitfalls of mutual funds for more than a decade, and it would be my pleasure to discuss your options with you or help you in any other way. Simply contact me at david@www.valuealigned.com or 732-800-2375.

And in the meantime, check out my Last Chance Checklist and subscribe to my email list (if you haven’t already) to receive even more news and updates.

Image Credit: altankoman | morguefile