As you get ready for St Patrick’s Day you might be looking at your tax liability and wondering how next year your tax situation could be better. Tax Loss Harvesting within your investments could be beneficial for you if you hold mutual funds of stocks outside of a retirement plan. Tax Loss Harvesting involves selling your losers before the end of a tax year and replacing them. That way, you can harvest, or realize the losses on your taxes for the year.
Many brokerages offer year end reports for those that want to harvest their losses for tax reporting . Some have even gone so far as to offer automatic tax loss harvesting, selling your losers for you. While others are advising that making adjustments for tax purposes could run counter to your overall objectives and should be avoided if it detracts from what you set out to do with your portfolio.
You can preserve the long term goals of your portfolio by selling a losing asset prior to the end of the year and then repurchasing the same asset 30 days later. The 30 days is required to avoid having a wash sale. Consider the cost you need to pay to sell and repurchase compared to the tax advantage you might have. There’s more benefit if you are in a higher tax bracket and you have ordinary income to off-set.
Take a look at TurboTax’s TaxCaster to estimate your taxes for the year.
When you get in a bind after a relative passes away it can be extremely tempting to go to the bank and get an inheritance loan. You might think that this is a good way to get the money that you need to get you through this rough time, but don’t you think that an inheritance advance might be a little easier for you? If you are unsure about the difference between the two, you need to sit up and pay attention, because you might learn something that can help you avoid a lot of financial hardship in your immediate future.
Inheritance Loans come with Big Interest
The difficult thing about inheritance loans is that they come with a bunch of interest, and they can mess up your credit and your entire life if you miss a payment or two. And with banks making loans with terms that are so bad that you can’t pay them back, you are going to run into this problem. But an inheritance advance is completely different. You show your advance officer the amount of inheritance loan that you are expecting. He or she then gives you an advance on this money; you get it in one lump sum, so if the terms of your inheritance say that you get a monthly or yearly payment until the funds are exhausted, this is a great way to get your money now. And after you get your money from the inheritance advance company, they get the money when it becomes available.
This is a very quick way to get your needed money after a loved one passes away. A bank will have mountains of paperwork for you to sign before you get a dime. If you want to waste your time feel free, but for the rest of us, we’ll take inheritance advances for our money.