The Importance of Tax-Efficient Portfolio Rebalancing

In recent years, investors have been fortunate to experience strong returns from equities. With the S&P 500 being up about 70% from this same point five years ago, there’s a lot for investors to be happy about. While being content with a surge in asset values, many investors are facing tough decisions on how to free up liquidity in their taxable brokerage accounts without being hammered by capital gains tax. This brings up the question, how can I free up liquidity while remaining true to my desired asset allocation and limiting capital gains tax?

Handling Market Volatility

Conventional wisdom says that what goes up, must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when it's your money at stake. Though there's no foolproof way to handle the ups and downs of the stock market, the following common sense tips can help.

D3 Comments on Market Volatility

We have been sharing with all of our clients for at least 6 months that a technical correction in this market was long overdue. Our primary indicator was that normal volatility in the market has been very subdued and abnormally low. The chart below shows how low downside volatility has been recently compared to history.

Growth vs. Value: Two Approaches to Stock Investing

Growth and value are two fundamental approaches, or styles, in stock and stock mutual fund investing. Growth investors seek companies that offer strong earnings growth, while value investors seek stocks that appear to be undervalued in the marketplace. Because the two styles complement each other, they can help add diversity to your portfolio when used together.

5 Keys to a Tax Efficient Portfolio for High Income Earners – 2016 Edition

In 2016, a 20 percent tax on qualified dividends and long-term capital gains for taxpayers with taxable income over $466,950 ($415,050 for single filers) will be in effect for its fourth year.   Also, a 3.8 percent Medicare surtax on investment income for taxpayers with AGI exceeding $250,000 ($200,000 for single filers) will be in effect for its fourth year.  These changes have made it more even more important to reduce the tax drag on your portfolio.  Below are 5 ideas to make your portfolio more tax efficient.

Is Active Portfolio Management Right for You?

The heightened volatility that has afflicted the U.S. stock market for the past several months points out the potential benefits of active portfolio management. What distinguishes an active investment style from a passive style -- and what benefits may active management provide in a volatile market?