First Monday morning I will march into my employer's office and demand a termination so that I can be in the lower tax box next year. Of course that's funny, but isn't it the same as the "General Intelligence" (CW) financial community planning end-of-year tax?
What about the long-term investment climate, or the benefits of that investment that they feel firm in July? What are their motives, and what discipline did they think of in the first place? Obviously there are many questions that need to be answered, but as investors, it should be very clear that the purpose of the investment plan is to make money… as soon as possible, as soon as possible, legally and within the risk zone. The sooner it enters, the more successfully it can be integrated.
Otherwise, wouldn’t “CW” be getting as low as most, so there would be no tax consequences? Wouldn't Zero Taxable Gain Investment be the only "smart" investment strategy? A December 2004 issue of the New York Times Money Section suggested that Investment Professionals were responsible for losing money to their clients in order to reduce their tax burden. Your Financial Professional vision can produce smart tax advice but only professional investors (not accountants, lawyers, stockbrokers, financial planners, general advisers) should be called in for sound investment advice.
CPA may look smart if you have low tax debt, but most of them go too far with the focus of a calendar year ignoring the issues of the emotional and circulating investment climate. Take Merck's example from last year. It's almost doubled in Market Value since you were told to sell it last November… who's going to touch it! Why not buy more (of this and many other high-quality ones) instead of selling? Fortunately, not all professionals lose money. In fact, in almost three decades of dealing with hundreds of Accountants and other advisers , even a handful have suggested that clients should lose their fundamentally protected funds, Equity or Fixed Income.
Imagine if you took your dot.com profit by 99, bought the for-profit companies that were depressed at the time, and paid bad taxes. Value companies did not crash. They have been together for almost seven years! An important issue in considering losing money is the economic performance of the investment… not your tax status! A key feature of The Working Capital Model (investment portfolio management) is to eliminate the most vulnerable security in the portfolio each time the Value portfolio introduces a new “All-Time High” (ATH) profit level. My definitions may differ from the ones you are familiar with:
(1) Profit = Total Market Value - Net Portfolio Investment,
(2) "Weak" security stocks not measured Investment Range by S&P, or not traded long-term on the NYSE, or no dividends, or no profit. The security of a paid income that has dropped below the level (or increased to a non-stable level) can also be included in ATH. The security that you have most in the Value for no reason (except for the latest news or interest rate changes) is referred to by love as "Investment Opportunities". This is exactly what you need when you try to recoup your profits… like last year's MRT .
By the way, switching from the strong asset class to the weaker than “the surging strategy” or vice versa (like greed-driven speculation) is simply an attempt to “calculate market Asset Allocation remains a function of personal characteristics and will never be the function of the Equities and Income Generators.
Now what happens if the new ATH portfolio is available in February or August instead of November or December? (Note that the financial community only preaches on tax loss strategies in the last quarter of the calendar.) Should you reduce all the weak issues at once, even those purchased a few months ago? Managing your portfolio requires the direct application of rules and guidelines, and every manager will improve his or her style. But with a high, diversified, profitable portfolio,
(1) the number of weak issues will usually be small and
(2) the chances of escaping with very little loss become a reality. Remember the basic axioms of investment: There is no such thing as a bad profit, other than looking at taxes; and no matter how you measure it, there is no such thing as a good loss. So, of course, if the losses are to be taken as a result of ATH in February, shoot the bullet in one (one) safety with diminishing foundations (Merrill Lynch / CNN / CFP's opinion is not a basis.) If any, good job! Profit is a sacred investment record.
Few people will admit how often they appeared, or, on the other hand, how often they watched them disappear from the scene. (As gamblers returning to Vargas … no one ever seems lost!) Similarly, many financial experts will advise you on their cases so that their profits can continue, especially at the end of the year. Indeed, say the CW prophets, these benefits will remain in place until next year, thus preventing those negative taxes! (Well used at the end of '99, you'll remember.) Don't think for a moment that anyone knows what's going to happen this time around the rally pole, especially on those pricey ETFs, combined with the same type of scarf and tapes used by dot. Come . Always take your advantage soon, because you can't be poor that way! The first thing on Monday morning is: goals,
(3) reduce my tax debt by investing, not by unnecessary losses,
(4) continue to make as much money as possible, as soon as possible, and
(5) contact the media, my political representatives, and anyone else. Once I think will help in the fight against tax evasion for all investment.
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