It’s Time for Some Portfolio Tweaks

As we near the end of the year, it’s time to take a look at our portfolio and see if we should be making some changes.  This article in the Wall Street Journal makes some suggestions.

1. Prepare to take taxable gains

Taxes may go up in 2013.  We know what the rates are this year, we don’t known what they will be next year, but unless congress takes action, they will go higher.

2. Evaluate a Roth IRA

Tax-free distributions from Roth IRAs are excluded from both net investment income and modified adjusted gross income, helping limit your exposure to any new tax

3. Reorganize assets

Keep the tax consequences of various asset classes in mind when deciding where to buy bonds and dividend paying stocks.

4. Inspect your asset allocation

Still spooked from the market melt-down of 2008?   Keeping large amounts of money in cash may help you sleep well at night, but today’s low interest rates means that the cash cushion you’re holding is losing purchasing power.

%d bloggers like this: