"Peeling the Onion" on Mutual Funds Capital Gains Tax - Brings Tears to the Eyes!
Wall Street rarely (OK never) sends “a warning memo” in advance of a pending negative market event to investors. Imagine the erosion of portfolio values that would have been avoided in the late 2000’s if they did! However, in the 4th Quarter of every year – mutual fund companies do just that – they post their estimated capital gains distributions for each fund. Furthermore, the companies tell investors well in advance the exact date they will be distributing them.
Good afternoon - Successful inventors have always been the catalysts for tremendously impactful societal and economic changes over history. Thomas Edison is credited with inventing the light bulb, Alexander Graham Bell – the telephone, and Steve Jobs – well seemingly everything else (except the Internet which of course Al Gore created!) Clearly these inventions have an amazingly life changing impact on virtually everyone living in any developed country. An “invention” that is never discussed – but felt by most every investor working with an advisor today - is the “1% of Assets” advisory management fee. The unknown “creator” of this approach has funded an entire industry on the wallets of retail investors.
Good afternoon -
“Everybody’s talkin’ bout the new sound funny but it’s still rock and roll to me!”
This was a line from a Billy Joel song of the same name that many of us (now in our 50’s) sang in the early 80’s. We had no idea what it meant or was referring to then, but we emphatically belted it out! I heard it over the recent weekend (as a quick aside – it was not on any playlists of the 20+ members of the Penn State Women’s club lacrosse team who descended on our house - but more on that later)!