Mutual Funds
Navigating the new tax reporting requirements
December 2011 The Emergency Economic Stabilization Act of 2008 included new tax reporting requirements to the IRS mandating that certain firms report the adjusted cost basis of sold securities, including whether the gain or loss is short or long-term. Because of this, the Form 1099-B for 2011 from custodians like Schwab and TD Ameritrade will…
Read MoreEasing stress during uncertain times
September 2011 “People don’t plan to fail, they fail to plan.” The principals at Moisand Fitzgerald Tamayo have had their Certified Financial Planner designation since at least 1994 and our least experienced advisor has been with our firm since 2002. Thus, due to our years of experience working directly with clients and through our interactions…
Read MorePortfolio strategies to counter inflation
June 2011 With high government spending and rising national debt, many people are asking how they can prepare for potentially higher inflation. There are two basic ways to address inflation uncertainty: hedging the immediate effects or earning a total return that outpaces inflation. It may seem that everyone thinks inflation is coming and interest rates…
Read MoreMunicipal bond default risk way overblown
March 2011 With debt levels of many governments around the world at high levels and several states and municipalities also struggling to contain their borrowing, the venerable 60 Minutes thought a discussion about fiscal stresses might make for notable TV. They were right. They brought a guest named Meredith Whitney on the December 19th broadcast…
Read MoreThe Power of Concentration
One of the most common causes of the outperformance – and underperformance – is concentrating the portfolio in just a few holdings. The pitch is that the money is invested in only a few “best ideas”. It is a nice idea with great appeal. Why would anyone buy securities they didn’t feel strongly about? Well, the markets don’t care how any individual feels. But what is often ignored are the greater risks inherent in such a strategy.
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