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Loss Harvesting – Making Lemonade

In a market that seems to continue making lemons, how can we make some lemonade? While current market conditions are wearing on nearly everyone, investment losses provide an opportunity for tax planning this year and in years to come. We refer to this process as ‘loss harvesting.’

Is it time to take a timeout from bail-outs?

<p>Many Americans are upset that although they managed their money wisely and lived within their means, they are now being penalized for making smart, responsible choices For instance, those who were on the cusp of retirement, now find themselves having to work longer. After enduring the recent months of market volatility and witnessing investment accounts decline, many Americans are left wondering, “Where is my bailout?” </p>

Possible Suspension of Required Minimum Distributions (RMD)

There has been discussion among those in Congress surrounding the temporary suspension of required minimum distributions (RMD) for 2008. President-elect Obama has also indicated his support for temporarily suspending the RMD rules for IRAs and other arrangements to help retirees retain a larger portion of their savings by not withdrawing funds at the bottom of the market.

Tax Sheltered Savings More Favorable in 2009

It is difficult to see, or even catch a glimpse, of a silver lining during these turbulent times. But many investors, including Warren Buffet, are looking at today’s market as a saving/buying opportunity of a lifetime. The good news is that tax sheltered savings is more favorable in 2009 than in previous years. This is of particular importance considering President Elect Obama’s proposed changes to federal tax policy.

Selection of Funds in Your 401(k) / 403(b) Plan

With returns on 401(k) / 403(b) plans declining significantly over the last twelve months, it is more important than ever to focus on the expenses charged by fund managers (e.g., the fund’s expense ratio) and those administering the plan. While expenses are only one of many factors to weigh when making fund choices, expenses directly impact fund performance. The lower a fund’s embedded expense, the more of the return gets passed along to you.

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