Financial Insights

Tis’ the Season…for Capital Gains

Due to strong market performance, realized capital gains from mutual funds, your ACM managed portfolios and any other investments you have will be larger this year.  This may impact your taxable income for 2021.

We mentioned a couple of weeks ago in our year-end planning webinar that realized capital gains in any taxable investment accounts (not IRA or retirement accounts) are always the “wildcard” in projecting your taxable income for the year.  Other sources of income, like salaries, pensions, social security, required minimum distributions from IRAs and even dividends, interest and rental income are trackable and predictable.  When it comes to dividends and interest, for example, you should be able to locate the amount received “year-to-date” right on the first couple of pages of your monthly account statement.

Your monthly statement may report that amount of securities bought and sold for the most recent month and cumulatively year-do-date, but it may not necessarily report the realized capital gains or losses generated from the trading activity in your account.

Here are couple of action items to consider:

If you have questions or need information for your taxable (not retirement or IRA) accounts managed by ACM, then reach out to your Wealth Advisor who can provide you with the information you may need.

The foregoing content reflects the opinions of Advisors Capital Management, LLC and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.


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