Selling stock at a profit generates capital gains taxes. If you have a large amount of a single stock and want to diversify, a swap fund allows you to do that without incurring this tax.
The investments you lost track of can return to harm you and your family. Seemingly small orphaned assets can have painful effects.
King Solomon famously warned of “the little foxes that spoil the vines.” In a secular moment, he might have written, “It is the little assets that spoil the estate plan.”
Often at our firm, we uncover forgotten assets in a family’s financial portfolio. They may be perched in accounts that they no longer check. However, these neglected assets require attention.
When the Internal Revenue Service leaves a situation vague, sometimes you must guess at the answer to a tax question. The IRS recently issued a clear ruling, though, on a powerful contribution strategy that may change how you use your employer’s retirement plan.
Fortunes can quickly change for the better. Dealing with a dream financial windfall, though, can bring you new financial issues you might well find unexpectedly challenging.
Dying is really difficult to think about when you’re young and just revving up the best years of your life. But think: What would happen to your assets? To your family or loved ones? Estate planning looms large even for millennials.
If you were born between 1980 and 2000, consider this topic from a new perspective: Estate planning isn’t about expecting the worst. It’s about protecting the people you care about and making sure the assets you work hard to earn eventually disperse in a way you approve, no matter what.
After the headline risks of the market and inflation, taxes present the biggest obstacle to your building wealth. Your best investment strategy seeks to not only generate returns on your capital but also to save as much of your money as possible to keep it working for you. One of the surest ways to preserve your capital: Reduce your taxes on investment income and gains.
Here are some strategies.
Death and taxes: Probably you rarely want to discuss either. This first of two articles looks at how what documents help account for both certainties, though, when planning your estate.
Estate planning involves arranging the transfer of your assets after you die, in line with your goals and wishes. The latter usually include reducing taxes and other expenses, maximizing wealth flow to your survivors and descendants and providing for charity.
The 401(k), launched almost 30 years ago as a retirement savings alternative for federal civilian employees, now constitutes most working investors’ main nest egg, if not an entire household’s primary asset. Still, investors risk their future with confusion about details of these accounts.
These vehicles are typically “the place to start with savings,” said Ken Weingarten, president of Weingarten Associates in Lawrenceville, N.J., and speaker at an advisory panel.
Tax inversions – relocating a U.S. company’s headquarters to a lower-tax nation – are an attractive prospect for American shareholders. But President Barack Obama’s move to block them is doomed because the government has a bad track record in legal tax disputes. Plus, his plan likely would backfire, spurring more foreign takeovers of U.S. companies.