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

Berk's Blog

Capital Gains Distributions: The Gift That Just Keeps Taking

 

Have you made your Christmas list yet? Sometimes it’s more fun to be surprised during the holidays.

But not when it comes to capital gains distributions.

capital-gains

The Gift That Just Keeps Taking

For mutual fund investors across the U.S., capital gains distributions are the gifts that just keep taking.

The system requires that mutual fund managers distribute capital gains after selling securities that have appreciated in value.

Because you can’t control how many of your fellow investors will jump ship – requiring the sale of those securities in the first place – you could be vulnerable to a large IRS bill come April.

Even if you dodge the bullet in 2014, you’re still subject to large future tax bills unless you sell your fund. And that’s not something you should have to tolerate.

 

Investing in Stocks of Great Companies

Your best move? Sell your fund and make the transition to owning separately managed accounts in stocks of great companies.

Separately managed accounts are the only way you can ensure that your capital gains (and losses) will be proportional to your actual investments.

My passion and expertise is helping people navigate the pitfalls of mutual funds, and it would be my pleasure to work through them with you if you’re interested. 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: pippalou | morguefile