Expert Contributor
Sometimes It Pays
to Pay Tax By Joe Morgan, CFP®, CFA, Principal: JWM Wealth Management, LLC, Resident since 2004
M
ost people will delay paying tax as long as possible. We see this quite often in taxable investment portfolios where you can choose to sell investments with gains or losses when readjusting your portfolio. The typical approach is to avoid selling gains as long as possible and only sell the losers in order to benefit from a write-off. But following this method over time will distort your portfolio, moving it away from whatever optimal strategy you decided to put in place. This is especially true if we don’t replace the investments sold with something substantially similar. And if we do, we run the risk of violating the IRS’s wash sale rules which will negate the tax effect anyway.
OsteoStrong® is the first ever system developed specifically to help you strengthen the foundation of your body – the skeletal system.
A better method is to raise cash as needed in a proportional manner throughout our portfolio, keeping the strategy intact. This may cause us to pay a bit more tax today but ensures our desired risk/reward structure remains in place.
Unlike other health solutions, you don’t have to spend hours at a gym or exert physical energy that will leave you feeling tired by the time you’re done. Just show up as you are and we’ll handle the rest!
One wrinkle is that when we pass, our assets shift to our heirs while resetting the cost basis. This argues in favor of selling only losers as we get nearer our demise.
• Sweat-free • Painless • Once a week
Like so many other areas of financial planning, if we know when we are going to die the best strategy becomes clear.
• Fast: less than 10 minutes • Will not leave you feeling fatigued or sore the next day
Call now and we will buy your 1st Session
JWM Wealth Management, LLC is a Registered Investment Advisor with the State of California and Joe Morgan is a fiduciary to his clients at all times. If you’d like to ensure your finances are on the right track, schedule a call with Joe at www.calendly.com/jwmwealth. You can also learn more at jwmwealth.com.
3442 Camino Tassajara Danville, CA 94506 Osteostrongdanville@gmail.com 925.967.2809
BLACKHAWK LIVING 11
