Post Divorce Portfolio Balancing Act

All investors review their investments annually, and in light of the market’s recent volatility, it would be wise to review your investments soon as the new tax laws may affect your strategies. “Rebalancing” may be in order if your portfolio’s asset allocation no longer meets your current long-term objectives.As always, you should consult with your tax preparer and financial advisor to ensure that whatever changes have occurred in your life are reflected in your fiduciary’s overall plan.

It’s easy to see why PeaceTalks relies on the teamwork dynamic of involving tax and investment specialists in all our mediations. From the start couples build individual strategies as the assets are divided until a settlement agreement is reached and they sign off to their mutual satisfaction. We refer people, when necessary, from our group of trusted associates and we work seamlessly with whomever a client trusts.

The following has been excerpted from and article in The Press-Enterprise by Terry Parker. Look over these ideas and see if something might aid you in your preparation and planning. If you have a question please contact the office anytime.

Tax-Loss Harvesting
Are you holding an investment that has lost value since it was purchased in your taxable portfolio? Intentionally selling this investment at a lost to reduce your tax liability is called tax-loss harvesting. The capital loss realized from this transaction can be used to offset capital gains, reducing your tax liability.

Give the Gift of Cash
Do you want to give a gift of cash? In 2018, you can give a gift of cash up to $15,000 to as many different people as you want without incurring the gift tax. The $15,000 is a per-person limit, not a total limit. Gifts up to this amount—called an annual exclusion—are not reportable on your tax return. A husband and wife can each make a $15,000 gift, giving as much as $30,000 to as many people as they choose each year.

Qualified Charitable Distributions
At the end of 2015, lawmakers approved a permanent measure allowing individuals who are 70½ years old or older to make qualified charitable distributions (also known as QCDs) directly from their individual retirement accounts (IRAs) to their favorite qualified charities.

Teri Parker is a vice president for CAPTRUST Financial Advisors.

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