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Gene Todd, Executive Vice President/Managing Director of First Bank's Wealth Management Group

From monthly archives: December 2016

We are pleased to present below all posts archived in 'December 2016'. If you still can't find what you are looking for, try using the search box.

2016 Year-End Planning Advice

Wealth Management There has been quite a bit of uncertainty created by the elections this year. It is important to keep an eye on any law changes that may impact you for federal and state tax. As we near the end of the year, take a moment in December to plan for your finances so you can start the New Year with peace of mind. If this seems too daunting to accomplish in the next month, we strongly suggest you work with a financial professional. Tax efficiency ◾ Income taxes: Estimate your 2016 tax bill so you won’t be caught off guard when you file your taxes next year. If you are estimated to get a large refund, then you may be withholding too much from your paycheck. This is essentially an interest-free loan to the government until next spring. On the other hand, if you owe more taxes than you have withheld, then keep enough saved for your tax liability next year. ◾ Investments: Holding actively managed mutual funds in a taxable account require some of your attention. Most active mutual fu ...

Capital Gains Distributions

December is here, which means in addition to finishing your holiday shopping, investors need to think about and plan for capital gains distributions if they hold mutual funds. The end of the year is distribution season for mutual funds as they are required to distribute to shareholders their portion of capital gains and dividends incurred during the year. Shareholders are thus hit with a taxable gain, even if they have not sold any shares of the mutual fund. These distributions can sometimes be quite large, maybe even as much as 10-20% of the fund’s net asset value or NAV. Capital gain distributions are a result of trades that mutual funds made during the year. When a fund sells a stock or bond, it records how much it made or lost on each trade and at the end of the year it tallies up all of its gains and this total is passed on to the shareholders in the form of a capital gains distribution. Depending on how long the fund held the security, the gain could either be a short-term or a long-term capita ...

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