Articles

Capital gains tax breaks draw interest

With just days remaining in 2017, Congress passed the largest overhaul of the tax code in three decades through the Tax Cuts and Jobs Act. The bill made waves in the media and garnered lots of debate because it slashed the corporate tax rate from 35 to 21 percent, and also lowered income taxes for individuals and families.

But backed into the bill was a lesser-known provision that created lots of potential upside for investors through mechanisms called qualified opportunity zones, which at their core are economically-distressed communities located around the United States.

New questions during a pandemic

Turbulent economic times created by COVID-19 – the 2020 global pandemic that is pushing long-running bull markets into bear territory – puts client communication at the top of the “must do” list for financial advisors.

During a sudden downturn in the economy – especially when investors were sucker punched after enjoying record-breaking stock market gains – advisors must now be available to answer an onslaught of clients’ questions about current conditions, the economic outlook, and what – if anything—needs to be done right now to manage their investments. Advisors who neglect such communication risk losing their clients once the economy stabilizes.