tax efficiency

Monster Tax Bills

Portfolio Report Card: Analyzing a Self-Managed $1.45 Million Investment Plan

What are the hallmarks of a well-built investment portfolio? Low cost, broad diversification, tax-efficiency, risk compatibility with the owner, and performance that matches or beats an apples-to-apples yardstick. My latest Portfolio Report Card is for a married couple, C.J. in Orange County, CA. He is 57, she is 58 and they asked me to grade their …

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Portfolio diversification

Portfolio Report Card: A Poorly Designed $863,309 Advisor Managed Account

How can a person tell the difference between a healthy and unhealthy investment portfolio? Naturally, it’s by how well (or poorly) a portfolio does at addressing crucial areas like taxes, cost, diversification, risk, and performance. Here’s the problem: Poorly constructed portfolios are usually ignorant about these first four things, which explain why unsatisfactory performance results …

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Portfolio Report Card: One Doctor’s Sick $503,929 Retirement Plan

Some illnesses can go undetected for many years. Others are accompanied by obvious warning signs like coughing, sniffling, shortness of breath, and other red flags. Similarly, we can distinguish between a healthy investment portfolio versus a sick one by how each deals with important matters like taxes, investment cost, diversification, risk, and performance. My latest …

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Headache

3 Signs Your Mutual Fund is a Looming Tax Headache

Even if you don’t sell your mutual funds in 2014, you could still be on the hook for a hefty tax bill. The good news is you can limit the tax bite by paying attention to what’s going on with the funds you hold in your taxable investment account. Fund companies regularly distribute dividends (Nasdaq:VDIGX), bond …

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Portfolio Report Card: A $569,742 Retirement Plan with Sluggish Performance

Why do we take unnecessary risk with our investments? Is it because we’re gluttons for punishment or is it because we’re incredibly brave? Often, it’s because we’re simply distracted or unaware. Although the S&P 500 is still hanging on to its year-to-date gain, stock market volatility or “VIX” has advanced more than 30% over the …

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Portfolio Management 3

Portfolio Report Card: A $200,598 Retirement Plan Stuck in Neutral

Whenever we begin a journey, the excitement of getting started frequently overtakes us. We begin with unrealistic expectations and end disappointed. The investing experience of many people follows this unfortunate pattern. If you’re in this situation, there’s hope. Before I do a Portfolio Report Card for J.W. in Nashville, TN, here’s some background on him: …

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