Despite the chaos, and the joy, that the holiday season brings, it is important not to let year-end financial considerations and deadlines fall by the wayside. Critical decisions that investors must contemplate include: boosting 401(k) contributions, funding a 529 college-savings account, considering IRA distributions, and making charitable contributions and gifts. However, these are only a few of the important year-end considerations worth discussing.
In a recent article for the Wall Street Journal, I weighed in on one critical year-end financial step that investors should be aware of: booking capital losses. One can use capital losses to offset any capital gains tax-free. “If you're carrying investments at a loss—say, mutual funds that have dipped several thousand dollars in value since you purchased them—you might consider selling them by Dec. 31 to realize capital losses,” I offered. “Then use these to offset gains from other sources.” Additionally, if an investor particularly likes these mutual funds for the long-term, they can always be bought back in the new year, 31 days after the sell.
The following link will take you to the full article written by contributor Lindsay Gellman – “Financial moves you should make by New Year’s.”
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