Adding other sources of diversification could significantly reduce the risk from increasing stock exposure, our research suggests.
Daniel B. Eagan and Paul Robertson
The US tax reform just enacted has made effective tax management of portfolios far more valuable for some investors. The old rules of thumb never really worked, but their shortcomings will now cost investors more.
Daniel B. Eagan, Paul Robertson and Tara Thompson-Popernik
By raising capital-gains tax rates for some investors, the American Tax Relief Act alters the ground rules for tax-aware trading. If your taxable income exceeds $400,000 (single filer) or $450,000 (joint filer), there may now be less trading in your portfolio because each trade must clear a higher hurdle. (more…)
Daniel B. Eagan and Brian D. Wodar
Philanthropic seniors in the US have only until the end of January to decide whether to make a tax-neutral transfer of up to $100,000 in IRA assets to the charity of their choice. For many, this could significantly lower their tax bill. (more…)
In the end, the American Taxpayer Relief Act did not eliminate the tax exemption for municipal bonds or modify it any way. In fact, the increase in the top marginal tax rate makes muni bonds more attractive versus taxable bonds. And the Medicare surtax on investment income, enacted in 2010 but effective in 2013, makes muni bonds more attractive still. (more…)
Daniel B. Eagan, Steve Schilling and Tara Thompson Popernik
A special provision buried deep in a recent set of proposed US Treasury regulations opens the door for charitable remainder trusts (CRTs) to protect gains from being subject to next year’s 3.8% Medicare surtax. Here’s how CRTs can reduce their beneficiaries’ tax burden.
Daniel B. Eagan and Brian Wodar
The tax impact of delaying a charitable gift by just a couple of weeks (until 2013) could be large, but it may not be positive for US taxpayers. (more…)
Doug Peebles, Jon Denfeld and Ed Dombrowski
Caught up in the wrangling over the US fiscal cliff is a little-publicized program that could have big implications for short-term investors and bond yields if the program expires on December 31. If the Transaction Account Guarantee (TAG) program ends, huge sums of money may start looking for a new home. (more…)
Many US endowments and foundations (E&Fs) still plan to spend 5% of their assets each year, despite unusually low expected returns. We think few understand how likely it is that this will limit their ability to fulfill their missions in perpetuity. (more…)
Daniel B. Eagan and Andrew S. Auchincloss
The door is closing but has not yet shut for families hoping to benefit from the current favorable gift tax environment in the US. Those who are ready to act now may still be able to transfer wealth efficiently. (more…)