Mutual fund capital gains season is right around the corner. If mutual funds are a part of your portfolio, having an appropriate plan may help minimize the potential tax consequences of a capital gains distribution.
The funds you own could realize significant capital gains even though their performance might be modest relative to recent years. In 1987, investors faced a similar situation that they do today: funds were down, but they went on to a strong performance over this past decade.*
If you have investments that posted a loss this year, you could possibly use the loss to offset capital gains on your mutual funds.
A little tax management today may help reduce the potential impact of capital gains in November or December, but an appropriate tax strategy depends on your situation. Your financial advisor can suggest a qualified tax adviser to assist you. Contact him or her today.
*Past results do not always indicate future performance.
