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Consider Some Year-end Investment Tax Moves
It may be hard to believe, but we’re getting close to wrapping up 2019. And if you have a year-end to-do list, here’s one more item you might want to add: Lower your investment-related taxes. To help meet this goal, consider these moves you could make before year-end:
Keep in mind that selling an investment may change the allocation and performance of your portfolio. Also, just because an investment is down in value is not necessarily a reason to sell. And once you sell an investment to generate a capital loss, you need to wait at least 31 days to repurchase it to avoid incurring what’s known as a “wash sale.” Your financial professional can help you determine if selling any investments makes sense for your situation.
Before making any of these moves, you’ll also want to consult with your tax professional. And remember that while taxes are a consideration, they should not necessarily drive your investment decisions. When investing, you need to build a portfolio that’s appropriate for your risk tolerance and time horizon and that can help you achieve your goals, such as a comfortable retirement.
Still, if you can make some tax-smart investment moves before the year is out, you may well reap the benefits next April.This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Consider Some Year-end Investment Tax MovesShort /Radio version:
PSA: Consider Some Year-end Investment Tax Moves
Before 2019 winds down, you may want to consider some investment moves that could help when you file your taxes next year.
For starters, you might add to your 401(k), if your employer permits it. The more pre-tax dollars you put in, the lower your taxable income. Also, consider putting more money into your IRA. With a traditional IRA, your contributions may be fully deductible, depending on your income.
Here’s one more idea: If you itemize on your taxes, think about making gifts to charitable groups. If you donate investments that have gained value since you purchased them, you will generally be able to deduct the fair market value of the investment, and you can avoid paying capital gains taxes on the appreciation.
See your tax advisor and financial professional before making any of these moves. But if they make sense for you, put them to work – they could pay off when next April’s tax deadline rolls around.
This is (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #).
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