Follow
Due to the vast nature of investing I have decided to write short one topic articles more often. I find that one topic always leads to several other topics and that part of me that thinks this is actually fun wants to write about them all! I like things simple and we are ALL short on times these days. Better to spend 1 or 2 minutes a day grasping an idea that promotes action than never getting around to reading that 5 minute article that gets printed but never read. (I do that! Do you?) I hope you like the new shorter articles. Here goes…
On the topic of asset reallocation which I have been writing about if it instigates the selling of an asset class to rebalance the portfolio before you sell you may want to make sure you bought the asset over one year ago in order to generate a long term capital gain instead of a short term capital gain. The short term capital gain would be taxed at a higher rate than the long term capital gain. While tax implications should not be the first objective when making decisions about selling securities waiting a few days could save in taxes if it qualifies the transaction for a long term capital gain and may not have a significant impact on the sales price. If you tend to review your assets for reallocation annually this would certainly be applicable as the dates could fall just short of one year. Consider capital gains or losses from other securities during the tax year when reviewing this. Be sure to consult your tax advisor. As we all know tax rules change.
Before I start rattling on about tax implications taking too high a precedence in investing decisions I’ll end with…
Prosperous investing
Camille