The tax-code has favorable rules for those with realized losses in taxable accounts by allowing them to offset realized capital gains and ordinary income.
Any losses realized in excess of capital gains can reduce one’s ordinary income by up to $3,000 annually and can be applied to future gains and ordinary income.
When the market falls, investors receive an opportunity to generate tax savings and potentially rebalance their account at a discount.
The first six months of 2022 have been painful for investors, but there are some silver linings to the market’s selloff.
It is important to maintain perspective when it comes to the financial markets; even with the selloff this year, most investors have benefited from past gains.
Investment success is determined by how one reacts to turmoil and market selloffs; maintaining composure gives the best odds of getting through a downturn.
Investors are grappling with two contrasting worries that inflation is too high, and the economy will weaken.
The challenge for central bankers is to cool inflation without upsetting the economy, which has been difficult to achieve in the past.
When the market hits a rough patch, it’s important to stick to your plan. It may also be worth looking for opportunities for tax-loss harvesting or a Roth conversion.
Investor sentiment is sitting at lows last seen in the global financial crisis as inflation, geopolitics, and China’s Covid-19 policy have consumed markets. In turbulent times like now, our emotions can cloud our rationality. Time in the market is more productive than timing the market. Investing success comes from focusing on what one can control, particularly asset allocation and investment strategy.
There were few places to hide in the first quarter. Stocks and bonds both declined while commodities spiked. The recent experience in bonds has been one of the worst on record. But does that mean we should give up on bonds? We offer our thoughts on navigating the bond market rout.
The tax-code has favorable rules for those with realized losses in taxable accounts by allowing them to offset realized capital gains and ordinary income.
Any losses realized in excess of capital gains can reduce one’s ordinary income by up to $3,000 annually and can be applied to future gains and ordinary income.
When the market falls, investors receive an opportunity to generate tax savings and potentially rebalance their account at a discount.
The rise in inflation has led to an eye-catching rise in the interest rate offered by Series I Savings Bonds, a.k.a. I Bonds. The 7.12% rate on the current I Bond issue is hefty, but it’s important to consider several important details. I Bonds may be most appropriate for those looking for an alternative to cash or certificates of deposit (CDs).
The last twelve months have been a wild ride, as the financial markets echoed the emotional ups and downs of a challenging year. The battle against the pandemic and the economy are on better footing. Still, worries persist about what may be next for stocks and bonds. Tomorrow’s challenges will be different than today’s. Even though they are unknown, we have the tools to learn, adapt, and survive.
Heading into the November Election, it’s common for investors to be concerned about how the stock market will perform. Historical stock market performance suggests the market doesn’t really care which party takes office. Still, the economy and profitability are much bigger than the politics at any moment. That is still true today, as hard as that may be to believe.
Choppy markets continued in April. After all the large swings, the S&P 500 ended with a modest gain of 0.4% for the month, leaving the index down 0.4% for the year. Developed international markets beat domestic stocks with the MSCI EAFE index gaining 2.4% in April. Emerging market equities, feeling currency pressure and geopolitical tensions, pulled back in April but show small gains for the year.
