All the Gain (Without the Pain)

You might remember Jane Fonda's aerobics videos on VHS or Betamax from the 1980s. She

would often use the phrase, "No Pain, No Gain," to remind and encourage followers that getting

what you wanted requires sacrifice; tone muscles weren't free and needed to "feel the burn" to

see results. We would tend to disagree with that mantra.


Investors are often reluctant to lock in gains knowing their actions might trigger a tax liability.

Depending on your income range and state, taxes could quickly erode the gains, possibly by as

much as 35%. Gains on investments held for less than a year are subject to even higher

ordinary tax rates. Thanks to legislation in 2017, you can offset the gains through the use of

Qualified Opportunity Zones (QOZs).


In the past few years, many investors have looked at using this part of the tax code with a

liquidity event (sale of real estate or a business); however, that is just the beginning. How low is

the basis in your investment portfolio? Now might be the time to reallocate. Are your mutual

funds forecasting capital gains? The entire distribution can continue to work. Did you buy

stocks at market lows earlier this year? Tax concerns shouldn't hold you back from capturing

your earnings.


Investing in Qualified Opportunity Zones might be the strategy that allows more of your money

to keep working. Advantage Wealth Solutions continues helping clients access tax benefits

through turn-key portfolios. If you are thinking about your investments, you may enjoy the gain

without the pain.

PO Box 1031, Windham, NH 03087

24 Mitchell Pond Rd, Windham, NH 03087

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The content is developed from sources believed to be providing accurate information.  The information in this material is not intended as tax or legal advice.  Please consult legal or tax professionals for specific information regarding your individual situation.

 

This is neither an offer to sell nor solicitation of an offer to buy any securities. Offering facts and terms are controlled by a sponsor’s final Private Placement Memorandum (or prospectus). All investments and tax strategies have risks, including the possible loss of principal in many cases. Always review the offering document for a more thorough discussion of risks, expenses, and limitations. Certain investments discussed on this site are illiquid  and  generally cannot be sold readily on the open market. If you need to sell an asset to raise money quickly, you may not be able to do so.  Other investments are only available to accredited investors; the Security and Exchange Commission defines an accredited investor as an individual with either $1 million in net worth (all assets, excluding primary residence, less all liabilities) or net income for the last two years of $200,000 or greater ($300,000 if married) with a reasonable expectation of such earnings in the current year.

Past performance and/or forward statements are never an assurance of future results. Advisory Group Equity Services, ltd., its affiliated companies, and its representatives do not give tax, legal or accounting advice; nothing herein should be construed as such.

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