While many investors will not begin to think about taxes for several more months, today’s article argues that “anytime is a good time for tax planning” and that this time in particular – the fourth quarter of the year – is a particularly good time for this, stating that “planning before the end of the year increases the number of opportunities you have to potentially lower you bill.” The authors outline a number of steps investors can take in the fourth quarter to prepare their returns and potentially reduce their tax liability. To see what these steps are – including why some unemotional stock selling may be in order and the savings opportunity presented by bunching expenses – CLICK HERE.
While alternative investments have the potential to both reduce a portfolio’s risk and boost its returns, the key word here, as today’s article emphasizes, is can: “If done poorly, alternative investments can just as easily take a wrecking ball to a portfolio and destroy years’ worth of gains.” Specifically, the author outlines the real-life example of the Dallas Police & Fire Pension System (DPFP) which, “after making a series of questionable investments” in alternative assets, ended up bankrupt. To read more about what happened to the DPFP and the lessons this cautionary tale holds about alternative investments – as well as for the four conditions the author recommends be in place when it comes to alternative investments – CLICK HERE.
With their low default risk, high dividend yields – with some paying yields above 6% – and ability to provide most Americans with tax-free income, the author of today’s article describes municipal bonds as having “the retirement income trifecta.” Recognizing that it can be difficult to buy quality individual municipal bonds, the author recommends seeking out the kinds of municipal bond funds purchased by large institutional investors, and highlights three such funds to consider – including one that he states has “the inside track on the best deals” – a portfolio of which has an average yield of 5.3%. To read more about municipal bonds in general, as well as these three specific funds that can provide a steady stream of retirement income, CLICK HERE.