FMD Capital Management

Posts Tagged: taxable

3 ETFs For 2017 Tax-Loss Harvesting

Written by David Fabian, November 28th, 2017

Tax-loss harvesting is one of the more underutilized strategies for taxable investment accounts. This approach involves selling holdings at a loss in the current calendar year to offset capital gains and income. Furthermore, there is the opportunity to replace a mutual fund or ETF with a similar investment to maintain a like-kind asset allocation. The net effect is to mitigate the impact of taxes in a particularly bountiful year.

The first step in this process is identifying holdings that are sitting at a loss and may be ripe for a transition. Your monthly brokerage statement or online portfolio view should allow you to easily spot these culprits. The following categories may be the most easily exploited tax-loss harvesting opportunities for 2017.

Read the complete article at NASDAQ.com

ETF Risks: Truth Or Fiction?

Written by David Fabian, March 28th, 2017

There are many stories and books written about the risks of ETFs.  Some of these are derived from real-world events, while others are simply speculation about what might come to pass under extreme circumstances.  There is also a subset of perceived risks in related asset classes that may not have anything to do with ETFs at all.

The difficult part for investors who use these tools is discerning whether the risks are real, imagined, or simply overstated for the benefit of grabbing your attention.  To help shine some additional light on this subject, I want to explain some of the most commonly touted risks and look at various strategies to mitigate them.

Read the complete article on NASDAQ.com

3 CEFs for Tax-Efficient Total Return

Written by David Fabian, February 10th, 2017

Income investors with large taxable accounts are consistently focused on maximizing their total return and minimizing the impact of taxes on their nest egg.  That means seeking out funds that are sensitive to the type of income they produce and the implications of using capital losses to offset gains.

Exchange-traded funds (ETFs) are one avenue for investors to consider in this pursuit.  Many ETFs that track a passive index have low portfolio turnover rates and often pay little to zero capital gains at year-end.  These make for a truly inexpensive and effective vehicle for tax-conscious investors that want diversified stock or bond exposure. Read more

You Don’t Want These Advisors Managing Your Money

Written by David Fabian, October 20th, 2016

Choosing an investment advisor or money manager should be a careful process based on diligent research.  The best relationships start with a shared investment philosophy, followed by a building of trust through education and transparency. Read more

How To Use ETFs To Reduce The Tax Bite In Your Portfolio

Written by David Fabian, May 06th, 2015

Now that the 2014 tax season is in the rear view mirror, it is a perfect time to start analyzing and strategizing your game plan for 2015. With two-thirds of the year still to go, there are a number of smart moves you can make to reduce the impact of future taxes that will have to be paid on any non-retirement accounts.

One of the easiest ways to do that is by reviewing your exiting positions and trading history to determine if there are reasonable adjustments or substitutions that can be made. Often legacy mutual funds, inefficient income assets, or over trading within a taxable account can create a significant tax burden. Fortunately, there are a variety of ways you can enhance your tax efficiency using exchange-traded funds.

Read the complete article at NASDAQ.com